Global Briefs

The US Federal Reserve slashed short-term rates a half percentage point, its ninth cut this year, and said it was poised to lower borrowing costs again as it tries to avert the growing threat of a US recession in the aftermath of the September 11 attacks.

American President George Bush has proposed boosting the US economy with $60bn - $75bn of tax cuts and spending increases, bringing the total economic stimulus package following last month's terrorist attacks to as much as $130 bn.

The Bank of England cut interest rates by a quarter-point to 4.5 per cent. In a statement following the cut, the Bank referred to "the weaker world outlook and increased uncertainty" following the September 11 terrorist attacks on the US, which "have set back UK business and consumer confidence, and may, for a time, restrain business and household spending"

Liffe, the London stock exchange has put itself up for sale after receiving several takeover approaches, including one from the London Stock Exchange. Others believed to have held takeover talks include the Nasdaq stock market in the US, Euronext and the Chicago Mercantile Exchange.

European and Asian airlines continue their round of capacity reductions and job cuts following the steep fall in traffic. Alitalia, Italy's national carrier, was set to unveil a long-awaited four year industrial plan for the group. In Switzerland, SAir Group lurched towards bankruptcy when it filed for protection from creditors.

A decison is to made whether to grant creditor protection to struggling Belgian flag carrier Sabena. KLM, the Dutch national airline, said it was cutting 9 per cent of its workforce and Japan Airlines said it would reduce trans-Pacific flights by 24 per cent for October and November.