Economics / Markets

US stocks have weathered a 7% slump for Dubai's leading index and are back in the black.

Fears are growing over Britain's exposure to the financial turmoil in the stricken Arab state of Dubai, reports the Daily Mail.

London investors are still wary after last week's request by Dubai World for a six-month standstill on debt repayments raised concerns about possible default.

US shares dipped into negative territory in early trading as the after-shock of Dubai's debt mountain disclosure continued to shake world markets.

The FTSE opened better than expected in early trading Friday after concerns over Dubai's financial health sent Asian markets plummeting.

UK private equity companies reacted angrily last night after a European parliamentary committee proposed widening the scope of a controversial directive for alternative fund managers.

European shares were lower this morning in early trading (FTSE Eurofirst 300 -0.6%; FTSE 100 -0.6%).

Lloyds Banking Group has launched a record-breaking £13.5bn rights issue at a near-40% discount as part of a massive fund raising to strengthen its balance sheet, reports The Telegraph.

In London, shares opened up strongly this morning with the FTSE 100 up 1.7%, as miners and energy stocks were driven by buoyant commodity prices.

Gordon Brown will take his radical proposal to tax City trading to Britain's business leaders today, as a survey shows more than half of voters would back the plan if the proceeds went to help the poorest in society.