The attacks on America and the 'new kind of war' that may follow are the lead story on every nationa...
The attacks on America and the 'new kind of war' that may follow are the lead story on every national newspaper, including the FT which leads this morning with an emotional President George W. Bush who said he would call on other governments to fight "a new kind of war" against terrorism.
Bush struggled to hold back tears as he talked to reporters in the White House, said national leaders "fully understand that an act of war was declared on the United States of America. They understand as well that that act could easily have been declared on them".
The president said he was pleased with the outpouring of support he had heard in conversations with foreign leaders such as Jiang Zemin of China and Vladimir Putin of Russia.
Dealing in investment funds and unit trusts remained calm yesterday, despite widespread fears in the City that the terrorist attacks on the US could spark a wave of panic selling from retail investors.
The Times says a decision by many fund managers in London to suspended dealings in a swath of investment funds and unit trusts with exposure to US-listed shares appears to have staved off a stampede of sellers.
Many fund managers began suspending sales on Wednesday in a bid to prevent panic selling and a huge drop uin nit and investment trusts as well as Oeic prices.
The suspensions spurred a UK-wide advertising campaign launched yesterday by Fidelity Investments, the biggest mutual fund manager in the country, warning investors not to ditch their funds.
"An instant and understandable reaction may be to consider selling your investments," Fidelity said. "But history has shown that hasty decisions may not be the best ones for you."
Retail sales rose by a sharper than expected 0.5% last month as Britain's consumers shrugged off growing fears of recession, adds the Times.
City economists said the buoyant data, which showed a year-on-year increase of 6.3 per cent, underlined the resilience of consumer demand in the face of the economy's downturn and would act as a brake on further cuts in interest rates by the Bank of England.
Expectations of further cuts in borrowing costs have increased in the wake of this week's terrorist strikes in New York and Washington. But analysts said yesterday's numbers could make the Bank's Monetary Policy Committee (MPC) uneasy about following any rate cuts by the US Federal Reserve.
The Federal Reserve was also under mounting pressure last night to bolster confidence in the damaged US economy by cutting interest rates before the New York stock exchange reopens, reports the Guardian.
As the Treasury bond market stuttered into life yesterday for the first time since the atrocity, it was immediately apparent that traders did not expect Federal Reserve chairman Alan Greenspan to desert them in their hour of need.
Traders expressed disappointment that the European Central Bank, the first big monetary authority to hold a meeting since Tuesday's attack, failed to announce a cut in borrowing costs after the ECB's governing council kept rates for the 12-member eurozone on hold at 4.25% yesterday.
The downturn in travel and tourism and the slump in consumer confidence expected to result from Tuesday's attacks on New York and Washington are likely to batter sales of luxury labels in the coming months, continues the Guardian.
The first signs of the impact that an abrupt decline in leisure travel and tourist spending could have on the big-ticket, top-brand sector came yesterday, when LVMH, the world's biggest luxury brand combine, cut its forecast for growth in full-year operating profits to 5%-10%. It had been expecting double-digit improvements.
And the Financial Services Authority yesterday said it would monitor the insurance industry in the wake of what could become the most expensive man-made disaster in history.
The City watchdog's comments came as Lloyd's of London, the world's largest insurance market, admitted to "substantial involvement" in insuring United Airlines and American Airlines as well as the World Trade Center complex.
The total bill for the devastating terrorist attacks on America is estimated at around $15bn, but a spokesman for the FSA said: "It is too soon to say anything about the costs, but we are monitoring the situation."
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