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| Wednesday, 10 October, 2001, 10:58 GMT 11:58 UK Economic fallout ![]() Shock waves from the attacks on the World Trade Center and the Pentagon are reverberating around the global economy. Financial markets were already worrying about a potential worldwide recession and are now even more nervous. Airlines are amopng the worst affected companies, already suffering a massive drop in business. BBC News Online looks at the economic fallout. Worldwide economic impact
The dramatic collapse in American consumer confidence, following the World Trade Center attack, increases the likelihood the US economy will slide into recession. However, the debate is now increasingly focusing on how far-reaching the damage will be and how long the downturn will last. IMF warns on global economy UK consumer confidence falls Dow suffers record loss
On the Monday after the attacks, the US financial markets re-opened after their longest period of enforced closure since the great depression. The US and European authorities slashed interest rates by half a percentage point to try to lift the gloom. But the Dow Jones index suffered its worst ever points fall with tens of billions of dollars wiped off the value of US companies and the misery continued all week. Wall Street's grim opening Market falls continue all week Suspicious trading
Air transport gloom The air industry has been severely hit. Within days of the attacks, tens of thousands of job losses had been announced spread across manufacturers and airlines. With some airlines warning of bankrupcy, governments on both sides of the Atlantic are in negotiations about what aid they should offer. Swissair stops all its flights BA job losses rise to 7,000 US airlines offered $15bn aid package European lifeline for airlines Insurers face record payout
The air strikes on New York constitute the single most expensive man-made disaster in history. Lloyd's of London has cautioned it may be years before the total claims bill is known. Around the world, insurers have been assessing the size of their exposure and there are concerns that some companies may struggle to survive. Estimates of payout keep rising Click below for video reports on the day of the attacks and on the aftermath |
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