Sunday, December 21, 2014

Follow us:
Follow @NY1 on Twitter Follow NY1 News on Facebook Follow NY1 News on Google+ Subscribe to this news feed 

News

Stock Markets Set To Reopen; Billions Pledged For Relief Efforts

  • Text size: + -
TWC News: Stock Markets Set To Reopen; Billions Pledged For Relief Efforts
Play now

Time Warner Cable video customers:
Sign in with your TWC ID to access our video clips.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

The three U.S. stock exchanges are scheduled to open Monday morning after the longest suspension of trading since the Great Depression, but the financial impact of Tuesday's attack on the World Trade Center is likely to be felt long after.

Stock market and government officials say they're working with businesses and their own experts to monitor safety, communications and power lines.



"It is clearly the goal to bring the markets up as soon as possible," said Richard Grasso, chairman of the New York Stock Exchange, "considering the human risk that people will take to bring these facilities up and considering our recovery operations are being undertaken. It is in that backdrop that we don't want to do anything precipitous."



The New York Stock Exchange on Wall Street, the nearby American Stock Exchange and the NASDAQ plan to open at 9:30 a.m. Monday.



Grasso insists that while the financial community is bowed, it will not be broken. "Lower Manhattan has been a hub since the creating of the first trading instrument 1792," he said. "I think our landscape will change. Obviously, our security will change. The way we work and do our business will change. But nothing will change that concentration and that excellence that this city has brought to all of our markets."

Wall Street and the services sector estimate a loss of more than $$4 billion following the disaster, and officials say the final monetary loss could exceed $$20 billion. Congress has already readied $$20 billion in relief funds.

Economy.com estimates the New York metropolitan region will suffer a $$10 billion drop in output. And according to preliminary figures from Chubb, insurance claims could be between $$25 billion and $$30 billion.

While few industries are immune to the damage, the financial service sector is clearly among those hardest hit. Beyond the human devastation, many firms face untold losses in revenue and records.

Senator Hillary Clinton has said as many as 50,000 jobs may have been lost. "It's very important to relocate these businesses as soon as possible. We don't want to lose a single job because of this act of war," Clinton said Thursday. "There's a lot of work to do, but the economic impact is one of the arguments that Senator [Charles] Schumer and I made as to why we have to start putting forth the dollars that we need."

In other economic sectors, analyst predict a drop in tourism and travel.

"What I am concerned about right now is the lingering effects of fear of terrorism - the impact that it will have on airline bookings and overall consumer confidence," said Kevin Murphy, an airline analyst.

Economists also worry that a drop-off in confidence could crimp consumer spending, which accounts for two-thirds of the U.S. economic activity.

Meanwhile, Mayor Rudolph Giuliani has vowed that New York will rebuild. "New York has tremendous support from the business community," Giuliani said Thursday. "I think we will emerge stronger not only morally, socially and politically, but economically as well."

To fortify commerce, the mayor convened a preliminary economic task force Wednesday comprised of government officials and business leaders.

Giuliani praised the overwhelming support from the business community, including a $$10 million donation from General Electric and a $$4 million commitment from Cisco Systems for victims' families.

Congress has approved $$40 billion for rescue, reconstruction, security and possible military retaliation costs associated with the attacks.

Charles Schwab, chairman and co-CEO of the Charles Schwab Corporation, one of the nation's largest financial services firms, issued a statement Thursday saying: "History teaches us that panicky reactions in times of crisis should be tempered with a solid knowledge of market behavior."

Schwab said investors can draw conclusions based on other tragic events in the past. He cited the invasion of Kuwait in 1990 when the market sold off for about two and half months but delivered a return of 30.1 percent in the following year. During the Cuban Missile Crisis in October 1962, said Schwabb, the market sold off briefly but recovered fully in only a few weeks.

After the attack on Pearl Harbor in December 1941, the market sold off for about four months but had recovered fully by the following October, 10 months later, according to Schwab.

"We can say with certainty that the extraordinary and tragic events of Tuesday won’t dictate market behavior over the long term," Schwab said. "Downturns set the stage for rebounds. Over time, economic fundamentals will have much greater bearing on stock prices than the acts of terrorists or irrational exuberance.”




More than 50,000 people worked in the World Trade Center, which was destroyed by two hijacked planes Tuesday morning.

Among the several hundred businesses inside the towers:

North Tower (Tower 1)


Television Stations: Channel 11 (WPIX), Channel 2 (WCBS), Channel 31 (WBIS), Channel 47 (WNJU), Channel 5 (WNYW), CNN (floor 110)


Greatest Bar On Earth, World Trade Club (floor 107)


Cantor Fitzgerald Securities (Floors 101-105)


Marsh USA (floor 200)


Fred Alger Management, Marsh USA (floor 100)


American Bureau of Shipping (floor 93)


American Bureau of Shipping (floor 91)


American TCC Intl. Group (floor 90)


The Chugoku Bank (floor 90)


Barcley Dwyer (floor 89)


Broad USA (floor 89)


CIIC Group USA (floor 89)


Daehan Intl. (floor 89)


Drinker Biddle & Reth (floor 89)


Metropolitan Life Insurance Agencies (floor 89)


Strategic Communications Inc. (floor 89)


Wai Geo Qiao USA (floor 89)


Wall Street Planning Assoc. (floor 89)


Empire Health Choice (floors 17, 19, 20, 23, 24, 27-31)


Global Crossings Holdings Ltd. (floors 83)


Instinet, Inc. (floors 13, 14)


Hyundai Securities Co., Ltd. (floors 78)


Kemper Insurance Companies (floors 35,36)


Landmark Education Corporation (floors 15)


Meridian Ventures Holding, Inc. (floors 78)


Port Authority of New York & New Jersey (floors 3, 14, 19, 24, 28, 31)


Pacrim Trading & Shipping, Inc. (floors 53, 78)


Sidley Austin, Brown & Wood, L.L.P. (floors 54, 56-59)


South Tower (Tower 2):


Atlantic Bank of New York (floor 106)


Chen, Li, Li & Jing (floor 107)


Sandler O'Neill & Partners (floor 104)


AON Corporation (floors 92, 99, 100)


Regus Business Centres (floors 93-97)


Gibbs & Hill Raytheon Co. (floor 91)


Fiduciary Trust Co. Intl. (floors 88,89,90)


Corporation Service Co., Gibbs & Hill (floor 87)


NY Department of Taxation and Finance (floor 82, 86)


Harris Beach & Wilcox Keefe, Bruyette & Woods (floor 85)


Bepaid.com (floor 84)


Fuji Bank (floor 79)


First Commercial Bank (floor 78)


Garban Intercapital (floor 74)


Morgan Stanley (floors 43-46, 56, 59-74)


Big A Travel Agency (floor 28)


Keefe, Bruyette & Woods (floors 85, 88, 89)


Thacher, Proffitt & Wood (floors 20, 38-40)


SCOR U.S. Corporation (floors 23,24)

10.11.12.248 ClientIP: 54.226.136.179, 23.0.160.15 UserAgent: CCBot/2.0 (http://commoncrawl.org/faq/) Profile: TWCSAMLSP