State-controlled giant Royal Bank of Scotland has helped lead the charge, provoking fears that taxpayers could be stung if the loans go unpaid. The Treasury has already injected £45.5billion into RBS, which became a watchword for reckless lending. Meanwhile, question marks hang over the fate of thousands of Britons employed by companies under Dubai's control. The emirate's investment vehicles hold interests in Alton Towers, the London Eye, P&O, hotel chain Travelodge, and the London Stock Exchange. THERE ARE FEARS THAT DUBAI WILL HAVE TO LAUNCH A FIRE-SALE OF ASSETS AS IT STRUGGLES WITH ITS DEBTS.

The United Arab Emirates holds at least £5.9billion of investments in Britain, while UK firms have holdings of £4.6billion there. British restaurateurs who set up in the region - including Gordon Ramsay and Gary Rhodes - are poised to lose out in the crash, as well as high-profile figures who have bought property there such as David Beckham. Last night Gordon Brown sought to quell FEARS THAT DUBAI'S DEBT CRISIS COULD TRIGGER A DEVASTATING 'DOUBLE DIP' GLOBAL RECESSION.

'If this is a localised problem then it can be dealt with, and I believe that that is the case,' he said after breaking off from a meeting of Commonwealth leaders in Trinidad. Markets slumped on Thursday after it emerged that Dubai's heavily indebted state corporation was unable to meet its interest payments. MORE THAN £14BILLION WAS WIPED OFF BRITISH BANKING SHARES amid fears they would be hit by further losses, though yesterday there was a partial rebound.

The Dubai saga is also a reminder of two unpleasant realities, that investors have lately seemed to forget. THE FIRST IS THAT THERE IS STILL PLENTY OF BAD NEWS STILL TO COME - INCLUDING FOR THE MAJOR BANKS. And Dubai is not, by any stretch, going to be the worst we get. The sheer range of estimates out there for European banks' exposure to Dubai shows how little anyone really knows. On the basis of some fairly sketchy assumptions, Credit Suisse has suggested that EUROPEAN BANKS MAY HAVE $40BN EXPOSURE TO DUBAI DEBT.

They say a 50% loss on that - who knows how much it could turn out to be - would be equivalent to a 5% rise in provisions in 2010, or a hit of about 5 billion euros after tax. That's not nothing, but - assuming the losses are fairly broadly spread - it's a rounding error on the losses of the past two years. Certain London-based hedge funds who had bet on Dubai World being bailed out could have an uncomfortable few weeks ahead. And big banks like HSBC and Standard Chartered will face some irritating losses if all the Dubai debt ends up being restructured.

In the meantime, the markets will have been reminded of that second unpleasant fact they'd rather not think about in the lead-up to Christmas. ALL OF THE MONEY BORROWED BY GOVERNMENTS IN THE PAST TWO YEARS WILL EVENTUALLY HAVE TO BE PAID BACK. And not just in Dubai. That could make for an interesting few weeks.

This allowed traders to put orders to buy or sell shares into the system, ready for when trading restarted. Normal trading was then able to resume from 1400 GMT. "We regret the inconvenience that today's disruption to trading has caused for our clients," said London Stock Exchange chief executive Xavier Rolet. "Having resolved the immediate issue, we are working hard to ensure this doesn't happen again ahead of switching to [its new] Millennium IT's trading platform next year."

The FTSE 100 index was frozen at 5,264.97 when trading was interrupted. After trading was resumed it went on to finish the day at 5,194, WHICH WAS 3.2% LOWER THAN WEDNESDAY'S CLOSING PRICE. This fall mirrored similar declines across Europe, due to concerns about the wider impact of state-owned investment company Dubai World asking for a six-month delay on repaying its debts.

"Michelle and I would like to send our best wishes to all those performing Hajj this year, and to Muslims in America and around the world who are celebrating Eid-ul-Adha. The rituals of Hajj and Eid-ul-Adha both serve as reminders of the shared Abrahamic roots of three of the world's major religions.

During Hajj, the world's largest and most diverse gathering, three million Muslims from all walks of life, including thousands of American Muslims, will stand in prayer on Mount Arafat. The following day, Muslims around the world will celebrate Eid-ul-Adha and distribute food to the less fortunate to commemorate Abraham's willingness to sacrifice his son out of obedience to God.

This year, I am pleased that the Department of Health and Human Services has partnered with the Saudi Health Ministry to prevent and limit the spread of H1N1 during Hajj. Cooperating on combating H1N1 is one of the ways we are implementing my administration's commitment to partnership in areas of mutual interest.

On behalf of the American people, we would like to extend our greetings during this Hajj season - Eid Mubarak."

en.wikipedia.org:- EID MUBARAK is a traditional Muslim greeting reserved for use on the festivals of Eid ul-Adha and Eid ul-Fitr. The phrase translates into English as "blessed festival", and can be paraphrased as "may you enjoy a blessed festival". MUSLIMS WISH EACH OTHER 'EID MUBARAK' AFTER PERFORMING THE EID PRAYER.

Earlier, Asia's markets were down sharply. Tokyo's benchmark Nikkei fell 3.2% to 9,081.52. In Hong Kong, the Hang Seng index ended down 4.84% at 21,134.5. Oil prices also fell. US crude dropped 4.5% to $74.51 a barrel and London Brent Crude was down $1.26 to $75.73. THE BIGGEST UNDERLYING FEAR IS THAT DUBAI'S PROBLEMS COULD REIGNITE THE FINANCIAL TURMOIL OF THE CREDIT CRISIS. That would lower global demand for a whole range of commodities, including oil.

It said on Wednesday it would ask creditors of the state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. 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 Gulf state, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions.

Lady Ashton was challenged to deny that she had contact with Russian sources while she was in charge of its accounts at the height of the Cold War. Lady Ashton's spokesman said: "During her time in the CND she never visited the Soviet Union, had no contact with the Soviet Union and has never accepted any money from Soviet sources. The first time she visited Russia was as EU Trade Commissioner."

However, all the candidates for the next European Commission must undergo formal hearings at the European Parliament and the European People's Party, THE MAIN CENTRE-RIGHT GROUP, HAS PLEDGED TO REJECT ANY WHO HAVE PROMOTED COMMUNISM IN THE PAST. The FT notes that the European Parliament cannot reject individual Commissioners; only confirm or reject the entire Commission. Yet the threat of the "nuclear option" could be enough to force Commission President Jose Manuel Barroso to make individual changes.

The IHT notes that the questions over Lady Ashton's past have particularly worried centre-right Eastern European MEPs. Czech MEP Hynek Fajnon said, "THERE IS NO DOUBT THAT THE KREMLIN SUPPORTED CND ACTIVITIES. If Mrs Ashton as treasurer had played any role in that, it would be a great scandal." Latvian MEP Krisjanis Karins said, "WE ARE ESPECIALLY CONCERNED HOW THE HIGH REPRESENTATIVE FOR FOREIGN AFFAIRS WILL CONDUCT DISCUSSIONS WITH OUR EASTERN NEIGHBOUR," according to the Times.

The 63-year-old, most famous for playing the Belgian detective Hercule Poirot, said Britain risks losing the importance of Christianity in our multi- cultural society. In an interview for Woman's Weekly magazine, he said: "I do feel that Christianity is being marginalised by other religions in Britain."

"I won't tell you the name of it, but a charity I work for got TURNED DOWN FOR GOVERNMENT FUNDING RECENTLY, BECAUSE IT WAS A CHRISTIAN CHARITY, even though it had been funded by the Government for several years. Don't misunderstand me. We should embrace all religions and marginalise none. BUT WE SEEM MORE CONCERNED WITH MARGINALISING CHRISTIANITY, AND NOT OFFENDING OTHER FAITHS. We are in danger of losing the importance of the Christian faith in our own country."

Earlier this year the Archbishop of Canterbury said it was "depressing" that an academic report claimed Christianity was being sidelined in Britain because LABOUR IS CONCENTRATING ON MINORITY RELIGIONS SUCH AS ISLAM. Dr Rowan Williams complained to Mark Thompson, director-general of the BBC, about the decline of religious content on television and radio.

The scientists called for a 30 per cent reduction in the number of farm animals bred for meat to prevent rising temperatures and rising sea levels. But the backing of VEGETARIAN MR BENN'S DEPARTMENT, which is specifically responsible for promoting farming, drew strong criticism from farmers and scientists who said cutting meat consumption was not the way to combat climate change.

Peter Kendall, president of the National Farmers' Union, said: 'Farmers will be angry that yet again we have an ILL-INFORMED AND SIMPLISTIC REPORT which appears to completely misunderstand agriculture's emissions and its role in climate change.

Professor Ian Crute, chief scientist at the Agriculture and Horticulture Development Board, which advises the meat industry, said: 'A large fall in meat eating or turning vegetarian is not the solution to climate change - it would make only a marginal difference to greenhouse gas emissions.'

They claim aliens are currently answering 30 questions posed to them. Lachezar Filipov, deputy director of the Space Research Institute of the Bulgarian Academy of Sciences, confirmed the research.

He said the centre's researchers were analysing 150 crop circles from around the world, which they believe answer the questions. "ALIENS ARE CURRENTLY ALL AROUND US, AND ARE WATCHING US ALL THE TIME," Mr Filipov told Bulgarian media. "They are not hostile towards us, rather, they want to help us but we have not grown enough in order to establish direct contact with them." Mr Filipov said that EVEN THE SEAT OF THE CATHOLIC CHURCH, THE VATICAN, HAD AGREED THAT ALIENS EXISTED.

He said humans were not going to be able to establish contact with the extraterrestrials through radio waves but through the power of thought. "The human race was certainly going to have direct contact with the aliens in the next 10 to 15 years," he said. "EXTRATERRESTRIALS ARE CRITICAL OF THE PEOPLE'S AMORAL BEHAVIOR referring to the humans' interference in nature's processes."

The effort appears to be part of a wider drive to counter opposition groups and other pro-reform factions that have been emboldened by the unprecedented protests after June's disputed presidential election. Opposition leader Mir Hossein Mousavi strongly attacked the Revolutionary Guard in a new statement Wednesday, accusing the elite corps of using brutal force to crush the massive street protests.

Authorities have recently emphasized the need to battle the reach of Western media, viewpoints and culture — which resonate strongly in a country where nearly half the population was born after the 1979 Islamic Revolution. Officials also have stepped up blocks on Internet links and closures of the few remaining liberal-leaning news outlets, while expanding state-run media arms and giving hard-liners more sway over education.

"Now, the enemy has put soft war on its agenda and THE TOP PRIORITY TODAY IS TO FIGHT THE SOFT WAR," Iran's Supreme Leader Ayatollah Ali Khamenei said on state television Wednesday during a meeting with Revolutionary Guard commanders and its affiliate paramilitary Basij forces.

The FDIC also said ITS FUND TO BACKSTOP DEPOSITS FELL INTO NEGATIVE TERRITORY for just the second time in its history, pushed down by a wave of bank failures. The decline in total loans showed how banks remain reluctant to lend, despite the hundreds of billions of dollars the government has spent to prop up ailing banks and jump-start lending. The issue has taken on greater urgency with the U.S. unemployment rate hitting 10.2% in October, even as the economy appears to be stabilizing.

"There is no question that credit availability is an important issue for the economic recovery," FDIC Chairman Sheila Bair told reporters Tuesday. "We need to see banks making more loans to their business customers."She said large banks -- which account for 56% of industry assets and received a large share of the government's bailout funds -- accounted for 75% of the decline.

James Chessen, chief economist at the American Bankers Association, an industry trade group, said, "IT'S A VERY RISKY TIME FOR ANY LENDER BECAUSE THE PROBABILITY OF LOSS IS GREATER, and they are being prudent in their approach to lending. Their regulators are demanding it." The FDIC said its deposit-insurance fund, which backstops trillions of dollars in deposit accounts, FELL TO A NEGATIVE $8.2 BILLION AT THE END OF SEPTEMBER, an $18.6 billion drop from the end of June. The FDIC said one reason for the decrease was that the agency shifted $21.7 billion from the fund into reserves for bank failures over the next 12 months.

The move would follow a surge in bank lending in the first half of this year, encouraged by the central government under its broader 4 trillion yuan economic stimulus plan. But now the regulator, WORRIED ABOUT A LENDING BUBBLE, is cautioning banks to ensure their capital is adequate.

Three of the country's top four listed banks, Bank of China Ltd (601988.SS) (3988.HK), China Construction Bank (601939.SS) (0939.HK) and Bank of Communications (601328.SS) (3328.HK) have already started work on fundraising proposals, a source told Reuters on Monday. "There's no doubt there will be a massive wave of fund raising from Chinese banks, but the key question is when, where and how," said Fan Kunxiang, analyst at Haitong Securities Co. "If banks all rush to sell shares within a short period, it would unavoidably be a blow to the stock market."

The Chinese lenders aren't the only ones in Asia looking to raise capital. Japan's banks, for instance, could be raising tens of billions of dollars to meet stricter capital rules. Mitsubishi UFJ Financial Group (8306.T), Japan's top bank, said last week it would raise $11 billion to meet coming regulations.

Zhong Nanshan, director of the Guangzhou Institute of Respiratory Diseases in China's southern Guangdong province, said the presence of both viruses in China meant they could mix and become a monstrous hybrid - A BUG PACKED WITH STRONG KILLING POWER THAT CAN TRANSMIT EFFICIENTLY AMONG PEOPLE. "China, as you know, is different from other countries. Inside China, H5N1 has been existing for some time, so if there is really a reassortment between H1N1 and H5N1, it will be a disaster," Zhong said in an interview with Reuters Television.

"This is something we need to monitor, the change, the mutation of the virus. This is why reporting of the death rate must be really transparent." The World Health Organization warned on Tuesday that H5N1 had erupted in poultry in Egypt, Indonesia, Thailand and Vietnam, posing once again a threat to humans.

"First, it places those in direct contact with birds - usually rural folk and farm workers - at risk of catching the often-fatal disease. Second, the virus could undergo a process of 'reassortment' with another influenza virus and produce a completely new strain," it said. "The most obvious risk is of H5N1 combining with the pandemic... (H1N1) virus, PRODUCING A FLU VIRUS THAT IS AS DEADLY AS THE FORMER AND AS CONTAGIOUS AS THE LATTER."

The US earlier announced that President Obama would pledge to cut greenhouse gas emissions in several stages, beginning with a 17% cut by 2020. However, BBC North America editor Mark Mardell says many environmentalists regard the US targets as disappointing.

UN climate chief Yvo de Boer said Mr Obama's presence in Copenhagen would "be critical to a good outcome". Danish Prime Minister Lars Loekke Rasmussen said that Mr Obama's visit "emphasises the president's will to contribute to an ambitious global deal in Copenhagen". President Obama will arrive at the summit on 9 December, two days after it opens. But he will not stay for the end of the 12-day meeting, when delegates are hoping to pull together a deal.

The UN summit aims to draw up a new treaty to supplant the 1997 Kyoto Protocol, although OBSERVERS SAY THIS IS UNLIKELY. Hu Jintao, president of the world's largest polluter, China, is yet to commit to attending. The US is the second largest polluter after China.

THE STATEMENT ROCKED CREDIT MARKETS AROUND THE WORLD and prompted analysts to question whether Dubai, the most populous of the United Arab Emirates, will be able to meet its obligations. The concern is that Nakheel will be unable to continue developing the Palm and neighbouring projects, leaving Dubai and its coastal waters an ugly, unfinished construction site.

When the 2,000 villas and townhouses on the Palm went on sale in 2002, they sold out in a month. Passing through en route to the World Cup in Japan and Korea were the England football team, and several players stopped off to sign up for £1 million properties on the artificial island, with Michael Owen, David James, Joe Cole, Andy Cole and Kieron Dyer, it was reported, joining Beckham on the beaches. Pitt and Angelina Jolie are also said to have bought homes.

Joe Cole was one of the few who got out in time. The Chelsea player sold his villa for about $3.5 million (£2.1 million) last summer as Dubai's property bubble approached bursting point. Altogether, THE DUBAI GOVERNMENT AND ITS COMPANIES HAVE MORE THAN $80 BILLION OF DEBT. The emirate, which has A POPULATION OF ONLY TWO MILLION, has been forced twice to approach its oil-rich neighbour in Abu Dhabi for the funds to bail it out. The federal Government has approved $15 billion in bonds and more will have to follow if Dubai's state-owned businesses are to survive until an economic recovery can take hold.