Europe News

"Dubai is such a unique economy... It has had an insanely rapid growth plan in place for a number of years, and they've been very prone to this economic downturn," Piers Curran from Amplify Trading said Friday. "We're seeing a snap reaction" to Dubai's debt problem as "sentiment is king in this market," but it will be short-lived, he added.

Tokyo stocks were in turmoil on Friday as the yen rose to 84 against the dollar. The Nikkei 225 Average closed at a 4-month low, down 3.2% on the day. The Nikkei's Ken Moriyasu has the details.

Dubai's debt delay problems could prove to be a break point for the next downturn, Clive Hyman from Hyman Capital Services told CNBC Friday. Hyman advises staying away from the real estate market for the meantime. Patrick Shum from BMI Fund Management joined the discussion.

UK banking regulations were under the spotlight again Thursday as proposals from city expert Sir David Walker were formally reviewed. Jon Dymond, director of Hay Group, has analysis of the proposals.

Banks must disclose how much they pay top employees, a UK government-sponsored report published by Sir David Walker said Thursday. "I am confident that the direction of the proposals I'm making is right," Walker, a former chairman of Morgan Stanley's international unit, told CNBC.

"It has been a difficult year for holiday companies…It has been a difficult year for luxury goods as well," Peter Rothwell, CEO of Swiss-based luxury travel company Kuoni, said Thursday. "Probably the worst is behind us and we're beginning to look at the green shoots."