US share fall for Dubai debt

US shares have fallen on worries about Dubai's debt problems, with the Dow Jones ending down 154 points, or 1.5 %, at 10 , 309.92 , in a shorter trading day. It was the first chance for markets in the US to react to news that state-owned Dubai World had asked for more time to repay its debts. US markets were closed for a holiday on Thursday when other world markets suffered steep losses. However, the main European markets recovered from earlier falls. The main share indexes in the UK, France and Germany had all fallen by more than 3 % on Thursday. But after falling further in early trade on Friday, the UK's FTSE 100 closed up 1 %, and both Germany's Dax index and France's Cac 40 ended more than 1 % higher. Earlier in Asia, Japan's Nikkei index had closed down 3.2 % and the Hong Kong Hang Seng ended 4.8 % lower. UK Prime Minister Gordon Brown described the fall in the markets as a "setback" but said it was "not on the scale of previous problems". "The world financial system is stronger now and able to deal with the problems that arise," he told reporters on his way to a Commonwealth leaders summit. Holiday hiatus Dubai World is the centrepiece of the Gulf state's economy. " Certain London-based hedge funds who had bet on Dubai World being bailed out could have an uncomfortable few weeks ahead " Stephanie Flanders BBC Economics Editor Sources close to the company have suggested that various refinancing options have been on the table for at least a month, although details have not been revealed until now. A six-month suspension on interest payments is believed to be the most likely option. David Buik, senior partner at BGC Partners, said: "You can't just say to the world: 'I don't want to pay my debts'. There is no income coming in from any of these properties. I think this is shocking PR." The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. It was the timing of the announcement as much as the lack of clear information that heightened nerves. The first news emerged late on Wednesday, as the Muslim world was preparing for its Eid celebrations. It also coincided with the closedown of the world's most important share market, with US markets winding down for Thursday's Thanksgiving holiday. Uncertainty of the scale of banks' exposure to Dubai hit banking shares at first. However, bank shares recovered strongly throughout Friday morning. Threat to confidence The biggest underlying fear is that Dubai's problems could reignite the international financial turmoil of the credit crisis. WHAT IS DUBAI WORLD? The emirate's flag bearer in global investments Has a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US ports Property arm Nakheel built The Palm Islands and The World developments Chris Skinner, chairman of the Financial Services Club, said: "We're very heavily interlinked. Dubai is the key financial centre in the Middle East." Any knock to economic confidence could lower global demand for a whole range of commodities, including oil. Oil prices dropped sharply. US crude fell about 5 % to $73.64 a barrel and London Brent Crude was down $1.56 to $75.31. Dubai, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. Dubai World, the conglomerate that led the emirate's expansion, had $59 bn (£36 bn) of liabilities as of August, a large proportion of Dubai's total debt of $80 bn. Its subsidiary Nakheel was the builder of the landmark palm tree-shaped island developments off Dubai.

New plan for Euro train booking system

Railteam, the alliance of European high-speed rail operators, has shelved plans for a Europe- wide common booking system because of increasing costs. The system would have allowed customers to book tickets for Europe-wide rail journeys in a single transaction. The platform was due to be unveiled this year, but has been scrapped for the foreseeable future, according to Eurostar. Railteam's other members include Thalys, SNCF and Deutsche Bahn. "All seven high-speed operators thought the platform would be a good idea but once we started looking at the system in detail we realised that it would be very complicated and therefore extremely expensive." said Lesley Retallack from Eurostar. At present, although travellers can book some Europe-wide tickets through the individual websites of Railteam's members, passengers often receive more than one ticket for journeys onward from the carriers' normal routes. The new system would have created a one-stop- shop for tickets for complete high-speed journeys across Europe.

Sales rise for Jaguar Land Rover

Jaguar Land Rover had seen its sales rise 23 % in the second quarter after its new models were well-received. Owner Tata Motors said new products such as the upgraded Range Rover, Range Rover Sport and Discovery 4 had had successful launches. Although Jaguar Land Rover made a net loss of £60 m in the July-September quarter, it was much less than the £240 m loss it made a year earlier. India's Tata Motors made a net profit of 217.8 m rupees ($4.7 m; £2.8 m) That compared with a loss of 9.4 bn rupees a year earlier. Tata said Jaguar Land Rover's performance was the highlight of the quarter. Tata bought the British marques from Ford for £1.7 bn in June 2008. Sales volumes at Jaguar Land Rover rose to 44 , 300 vehicles from 35 ,900 in the previous quarter. Aggressive cost reduction had also paid off, Tata said. "The [Jaguar Land Rover] business is witnessing some stability in the external environment with certain key markets showing signs of recovery," Tata said in a statement.

It delay test flight for airbus A400 M

Airbus says its long-delayed A400 M military transport aircraft should make its first test flight during the week beginning 7 December. The European aerospace giant said the test flight would go ahead "weather permitting". The A400 M was designed to replace ageing military cargo carriers in several European air forces. However, a series of technical problems have dogged the project and led to the delays. The aircraft was due to enter service with air forces this year, but this has now been put back to 2013. Amid growing concern, French and German officials have given the firm until the end of the year to prove that the project remains viable. Earlier this month, South Africa cancelled a multi-billion dollar contract for eight A400 Ms, citing escalating costs and delivery delays. The deal for the planes was signed a number of years ago, when the proposed cost was significantly less.

Eskom get loan to build power plant

Utility company Eskom has been loaned 1.86 bn euros ($2 ,77 bn; £1.69 bn) by the African Development Bank to finance the building of the Medupi power plant. The 4 ,800 megawatt facility in the Limpopo Province will significantly boost the energy capacity of South Africa, the bank said. This will be the first new plant built by Eskom, a state owned company, in over two decades. The plant is expected to be commissioned by February 2012. Eskom has been rationing electricity this year as the national grid cannot cope with demand. "South Africa's energy problem has been a major impediment to Africa's leading economy," African Development Bank president Donald Kaberuka said. "This operation should be seen in the context of the bank's ongoing efforts to help Africa bridge the infrastructure gap." In September, Eskom announced that South Africa's aim to provide universal access to the national electricity grid by 2012 may not be realised.