By Channel 4 News
Shares tumble amid fears that Dubai could push the world back into recession after the Gulf state delays payment on billions of dollars of debt.
The crisis flared yesterday after Dubai's government-owned investment company asked for a sixth-month delay on repaying debt.
Dubai World, which has debts of nearly $60bn, asked creditors if it can postpone its payments until at least next May.
"It's absolute paranoia. This is the last thing the market needed in the run up to Christmas," said Manus Cranny, head of sales at MF Global.
"It's not just the Dubai debt; investors are wondering what other black holes there are and what the ramifications are for global companies."
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