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0912C

0912C

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Choices are nice. Too many choices can be confusing. That’s why self-directed investors like Rene Russo value Analysts’ ChoiceΩ Fundsresearch,**access to our FundSmartΩ Specialists and now Morningstar™ research. Choice, research, supportwithout fees or commissions.*Click on, call in,or drop by any TD WaterhouseΩ, or TD Canada Trust branch to find out why over 1 million Canadian investors choose TD Waterhouse.Call today for your free copy of the latest edition of our FundSmart Quarterly.
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TD Waterhouse Investor Services (Canada) Inc. (“TD Waterhouse”) is a subsidiary of TD Waterhouse Group, Inc., a subsidiary of TD Bank. TD Waterhouse–Member CIPF.
Trade-mark of TD Bank. TD Waterhouse is a licensed user.
Based on studies published in Canadian Business Magazine, September 24, 1999 and October 16, 2000. * Early redemption feesmay apply, fees may also apply for some research. ** Analysts’ Choice Funds research is offered by TD Asset Management Inc., a wholly-owned subsidiary of TD Bank. Commissions, trailing commissions,management fees and expenses all may be associated with mutual fund investments. PLEASE READ the fund’s simplified prospectus carefully beforeinvesting. There is no guarantee that the full amount of your investment in the fund will be returned to you, as the value of the fund’s units changes frequently and past performance may not repeat. Mutual fund investments are not insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôt du Québec and are not guaranteed byTD Bank. Morningstar™ and Fund Quicktakes are registered trademarks of Morningstar Research, Inc.
www.tdcanadatrust.com
www.tdwaterhouse.ca 1.800.363.8009
RALPH ORLOWSKI / REUTERS
 A trader at the Frankfurt, Germany, stock exchange reacts after theattack on the World Trade Centre in New York yesterday.
FINANCIALPOST
C1
 WEDNESDAY, SEPTEMBER 12, 2001
CURRENCY 
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COMMODITIES
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HANLEY 
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INT. STOCKS
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MUTUALS
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STOCK LISTS
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STOCK MKTS.
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 WORLD
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I N D E X
Rogers Wireless holders kill bid to go private.
 Page C6 
SOURCE: BLOOMBERG NEWS
47004850500051503 a.m. E T 6 a.m. 8 a.m. 12 p.m.7000705071007150720072507300735010 a.m. 12 p.m. 2 p.m.Close
OILGOLDU.S. DOLLAR TSE 300FTSE 100
27283029319 a.m. 11 a.m. 1 p.m. 3 p.m.2702752802902853009 a.m. 11 a.m. 1 p.m. 3 p.m.1.0901.0951.1001.1101.1051.1159 a.m. 11 a.m. 1 p.m. 3 p.m.
 TRADINGHALTED TRADINGHALTED TRADINGHALTED
+
US
$1.61
$29.06
CLOSE:
US
+
US$
14.50
US$286.25
CLOSE:
-0.02 Euros
1.093 Euros
CLOSE:
-287.70
CLOSE:
Brent crude oil per barrelSpot price per ounceU.S. dollar in euros
4746.00
-295.90
7048.80
CLOSE:
 TRADINGHALTED
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Shocked investors, fearful the at-tack on the World Trade Centersignals a sustained campaign of terror against the United Statesthat could trigger a recession, areexpected to engage in broad panicselling when U.S. markets finally reopen, experts said yesterday.There is apprehension that benchmark U.S. market indexescould instantly lose in excess of 5%, wiping out billions of dollarsin shareholder value.“I expect some panic — I expectcapitulation,” said Irwin Michael, aportfolio manager at ABCFundsin Toronto. “There will be margincalls. There will be people feeling very uncomfortable and they wantout of everything. I wouldn’t besurprised to see major capitulationand, ultimately, a classic bottom.“It will probably be the buyingopportunity of the decade,” addedMr. Michael, a value investor.The New York Stock Exchange,the American Stock Exchangeand Nasdaq all said they will re-main closed, but they expect todetermine today when they willreopen. The last time the NYSE was closed for two consecutivedays was in 1933 during theGreat Depression.The new trading floor at theNYSE was being used yesterday to treat some of the thousands in- jured when terrorists rammed both towers of the nearby WorldTrade Center with hijacked U.S.passenger jets.Harvey Pitt, chairman of theU.S. Securities and ExchangeCommission, said in a statementthat trading will resume “as soonas it is practicable to do so.”However, it appeared likely to be several days before marketsreopen as Wall Street grapples with the fallout of the destructionof the twin 110-storey towers, which housed some of the mostimportant names in global fi-nance from Morgan Stanley Dean Witter & Co., which occu-pied 50 floors, to the Credit Su-isse Group, Bank of AmericaCorp. and Deutsche Bank AG.
 See MARKETS on Page C10
‘It will probably be the ... opportunity of the decade’
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The Toronto Stock Exchangeplunged nearly 300 basis points before shutting down yesterday morning, as a wave of terrorist at-tacks on the United States inciteda massive sell-off by panicked in- vestors.The TSE 300 Composite Indextumbled 295.90 to 7048.80,roughly 4%, in just 70 minutes of frenzied trading, and industry  watchers are predicting it coulddrop an additional 10% or more when it reopens.Robert Pattillo, vice-presidentof public and corporate affairs forthe TSE, said staff would conveneearly this morning to decide on aresumption of trading, addingthat the closure of the U.S. mar-kets today would factor into theTSE’s decision-making.Neither the New York Stock Ex-change nor the Nasdaq StockMarket opened yesterday, andmany investors are predictingthey will stay shuttered for therest of the week.“If there are people on the buy side who are anxious to partici-pate in the market and require anorderly market to do that, weprobably will reopen to facilitatethat activity,” said Mr. Pattillo.“The real issue is can we conductan orderly market?”Insurers and travel-relatedcompanies were hit particularly hard on a day in which nervousinvestors fled to the traditionalsafe havens of gold and oil. In all,229 of the benchmark index’s300 member companies weredown, including 25 of 28 finan-cial firms and six of its seventransportation stocks.
 See TSE on Page C10
Market Eye, Page C3
MAYREOPEN TODAY
 TSE plunges295 pointsbefore itshuts down
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Brad Crompton, president of Morgan Stanley Dean Witter &Co.’s Canadian division, sent em-ployees home yesterday morningafter terrorists struck the WorldTrade Center, said one of thefirm’s analysts.Morgan Stanley had about 3,500employees in the twin towers that were destroyed yesterday. The cen-tre was the headquarters of Mor-gan’s retail operations, and the bro-kerage firm was its largest tenant.On Bay Street, activity groundto a standstill as bank and bro-kerage employees absorbed thenews of the attack, which de-stroyed two of the most impor-tant buildings in the world’s mostimportant financial district.Most staff in Toronto’s bank tow-ers were given the option of leav-ing as fears circulated that they,too, could be terrorist targets.Canadian Imperial Bank of Commerce suspended operationsat its headquarters. Toronto-Do-minion Bank evacuated its head-quarters and moved key opera-tions into an emergency centre indowntown Toronto.“We were told that for security reasons, given what happened inNew York, that we should all leavethe office,” said Csaba Puskas, aprogram analyst at the bank. “Ithink everyone was just stunned.
 See STREET on Page C10
SECURITYPRECAUTION
BayStreet empties outas tragic news spreads
 All U.S. stock exchanges will be closed today. TorontoStock Exchange officials said they would decide thismorning whether to open.The CDNX, bond marketsand the Montreal Exchangeare expected to follow theTSE’s lead. Commoditiesand futures trading in New York and Chicago has also been cancelled. Full tradingis scheduled at all majorexchanges in Europe and Asia. Prices from yesterday’sabbreviated trading sessionsappear on Pages 18 - 23.
W H A T ’ S O P E N
TERRORTAKESITSTOLL
 W 
hatever illusions we havehad that religious terror-ism, especially Islamic terrorism,is strictly a religious crusade withnarrow geographic limits wereshattered yesterday as the great-est symbol of world capitalismand economic freedom — thetwin towers of the World TradeCenter — collapsed in the wake of a terrorist attack.In selecting as their target the world’s most powerful economicemblem, in the heart of New YorkCity a few minutes from WallStreet, the terrorists have sent amessage that will change the world. They have declared war onfreedom and democracy, ongrowth and prosperity, on freemarkets and on the United Statesas the dominant internationalsymbol of Western economicachievement. All signs point to Islamic ex-tremists. One Hamas terrorist leader once spelled out the eco-nomic core of his crusade.Hamas, he said, represents the“conflict between Islamic thoughtand Western thought and … aconflict of existence and destiny  between the Jewish capitalist al- liance and the Muslim people inPalestine.” Palestine, however, isreally just an afterthought in thegrand anti-Western, anti-free-dom and anti-markets crusadethat has global ambitions.The question now is: To whatextent will the World Trade Cen-ter attack give the terrorists aneconomic victory? Over the shortterm, the impact could be severe.Trade will be disrupted for days,if not weeks.
 See CORCORAN on Page C4
T
ERENCE
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The holywar oneconomic freedom
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CALGARY •
Crude oil surged yesterday after hijacked airlin-ers crashed into the WorldTrade Center in New York andthe Pentagon in Washington,over concerns supply may be af-fected by military retaliationfrom the United States and anescalation in Middle East ten-sions.Crude oil in London rose to aneight-month high, while rattledinvestors scrambled into the safehaven of energy stocks, sendingthe Canadian oil and gas index upmore than 182 points in about 70minutes of trading before theToronto Stock Exchange was shutdown.“The whole environment goingforward depends more on theU.S. reaction than the actualevents,” said Stephen Calder- wood, a Calgary analyst with Sa- lomon Partners.
 See OIL on Page C10
INDEXUP 182 POINTS
Oil surges on Middle East worries
Panic sellingis expectedin U.S.stocks
 
C2
FINANCIAL POST, WEDNESDAY, SEPTEMBER 12, 2001
 AXEL SEIDEMANN / THE ASSOCIATED PRESS
Lufthansa aircraft are parked at the Frankfurt international airport. The carrier turned back its U.S.-bound planes yesterday.
MONEYMARKETSAWAITU.S.MOVE
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The immediate outlook for the U.S.dollar and other world currencies will depend as much on politicalposturing as on investor perceptionabout where is the safest place topark money, analysts said yesterday.“A lot depends on what the U.S.official reaction will be and whatthe U.S. Federal Reserve will do,”said Max Tessier, assistant vice-president, currency, for TAL Inter-national in Montreal.“It is also not unreasonable tothink that officials from the (U.S.)Fed and the Federal Bank of Japanand the European Central Bank will be having a phone call to makesure we don’t see big swings in cur-rency markets in the next few daysas their contribution to creating asense of calm,” said Mr. Tessier.Before yesterday’s terrorist at-tacks, many currency analysts con-sidered the greenback to be over- valued as international investorssought a safe haven because of jit-ters about a slowdown in the worldeconomy. Yesterday, investors piled both inand out of the currency as uncer-tainty and panic selling rippedthrough world markets before they either ground to a virtual halt or were closed.On the one hand, there was ageneralized rush to sell the U.S.dollar. The dollar fell 2% againstthe euro, 1.8% against the yen, andhit seven-month lows against thepound and the Swiss franc as in- vestors shunned U.S. assets andopted for the traditional safehavens of Europe. Elsewhere, in- vestors dumped local currencies infavour of the greenback, which hasincreased steadily in value over thepast five years. While many analysts were waitingfor the dust to settle before makingprojections, some said they expectthe U.S. dollar will remain steady and perhaps increase in value.“The knee-jerk reaction to the blasts has been to sell the dollar,said Ian Stannard at BNP Paribasin London. “I would expect furthergains in the near term. Key to howmuch the dollar suffers is whetherthis will affect foreign investor con-fidence in U.S. assets.” Said DougDavis, president of David-Rea In- vestment Counsel Ltd. in Toronto:“The U.S. currency is still thestrongest in the world.“I guess I can see why they [in- vestors] might not like to hold itright now,” added Mr. Davis. “But when things get back under con-trol it will still be seen as thestrongest currency. William McDonough, presidentof the Federal Reserve Bank of New York, which oversees U.S.monetary policy and plays a key role in ensuring stability in globalfinancial markets, said the U.S.central bank was standing by toprovide liquidity if there is a surgein demand.No one knew yesterday wherethings will head today. “We have no way of knowing where marketsstand,” said TAL’s Mr. Tessier. “Af-ter 11 a.m., liquidity dried up.”“This is something that’s neverhappened, and nobody knows what’s going to come next,” saidCristian Engels, a currency traderat BanEdwards Corredores de Bol-sa SA in Santiago.
 Financial Post kleger@nationalpost.com
Investors rush todump U.S. dollar
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 World stock markets plunged yesterday after the attacks onthe U.S. financial and politicalcapitals of New York and Wash-ington, with airlines and insur-ance companies leading the freefall.Most European exchanges saidthey planned to open for busi-ness today.The London Stock Exchange —Europe’s biggest — evacuated itstower headquarters as a precau-tionary measure but continuedto run trading until the close of  business. It said it would openfor trading as normal today. TheFTSE 100 index closed down287.7 points in its biggest one-day fall since the crash of Octo- ber, 1987, wiping US$98-billionoff the value of shares. As well, the London Metal Ex-change three-month base met-als ended sharply higher, asdealers rushed to cover hugeshort positions in reaction to at-tacks on the World Trade Centerand Pentagon.The Paris bourse said the benchmark CAC-40 index end-ed down 7.39% or 433.2 pointsat 4059.75 points.German bourses sank to levelsnot seen for almost three years.The DAX was down 396.6points or 8.49%, with insurerMunich Re leading the tumble.Germany’s benchmark indextouched levels not seen sinceOctober 1998.In Milan, the Mib 30 indexclosed down 7.79% at 29,106points. The Swiss SMI indexshed 7.07% at 5695.1 points.The Madrid Ibex-35 index wasdown by 7.42%. However, Span-ish financial markets said they  would open for trading today asnormal.The Dow Jones Industrial andthe Nasdaq didn’t opened yes-terday, while the Toronto StockExchange was open for a littleover an hour.German airline Lufthansa, which said it had turned back itsU.S.-bound planes on news of the attack, plunged 22%, whiletourism group Preussag, fell14% as investors mulled the im-pact on the tourism industry.British Airways slumped 21% toclose at its weakest level in 10 years at 208 pence, hurt by theprospect of higher oil prices and worries about international se-curity. Singapore Airlines Ltd.and Cathay Pacific Airways Ltd., Asia’s third- and sixth-biggestcarriers by sales, diverted orcancelled all U.S.-bound ser- vices. On the Hang Seng, Cathay Pacific was down 0.20 at 8.35. Air France also traded 16.2% lower.Latin American stock ex-changes suspended trading andcurrencies tumbled after thetragedies. Stock exchanges inBrazil, Mexico, Argentina, Venezuela and Chile suspendedtrading as shares plummetedfollowing the attacks. TheBrazilian real fell to a record low, weakening as much as2.9% against the U.S. dollar.The Chilean, Mexican andColombian pesos also slid.“The market is reacting with-out a doubt to the airplanescrash,” said Sergio Machado, di-rector of fixed-income trading atBanco Fator SA in Sao Paulo.Brazil’s benchmark Bovespaindex fell as much as 9.2% be-fore the suspension of tradingafter 75 minutes. Argentina’sBuenos Aires Stock Exchangesuspended trading, after the benchmark index fell 5.2%.The Chilean stock exchangesuspended trading after the benchmark index fell 5.2%, while Venezuela’s CaracasStock Exchange suspendedtrading after its index fell 2%.Insurers were some of the biggest casualties on the Ger-man markets, with re-insurerMunich Re tumbling 14% and Allianz falling 9.6%, as in- vestors mulled the prospectthat the disaster would result inclaims worth billions of dollars.Insurer Swiss Re, the world’ssecond-largest reinsurer, saidits exposure was impossible toquantify. Swiss Re shares weredown 17.3%. Swiss insurerBaloise was down 8.8%.
 Financial Post, with files from Reuters and Bloomberg Newsdsteinhart@nationalpost.com
FTSE 100 posts biggest one-day fallsince 1987 crash
 Airlines, insurers lead plungeas global markets in free fall
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 WASHINGTON •
 After terroristattacks it remained unclear whether the World Bank and In-ternational Monetary Fund would postpone or cancel theirannual meetings due to takeplace here at the end of thismonth.“Today, we are only thinkingabout the tragedy and what wecan do to help,” Caroline Anstey,head of media relations at the World Bank, said yesterday.“But in a day or two we willhave to turn our attention to what can be done about the an-nual meetings and what the im-plications are.”The annual meetings bring to-gether top finance ministers andcentral bank governors fromaround the world to discuss theglobal economic situation.The meetings, scheduled forSept. 29-30, had already beenshortened to two days becauseof the threat of violent protests. Washington police expect asmany as 100,000 demonstra-tors.“We haven’t had the ability totalk about it yet,” said Adam Ei-dinger of the Mobilization forGlobal Justice, a coalition of groups that is organizing mas-sive demonstrations during themeetings. “People should takesome time to mourn and the de-cision will be made after carefulconsideration.”
 Reuters
World Bank,IMF meetingsin jeopardy
THE FALLOUT
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Panic from the attacks on the Unit-ed States sent gold prices soaringon a day that was otherwise expect-ed to be spent in quiet anticipationof today’s scheduled gold sale at theBank of England.The gold fix in London rose 5.7%or US$15.60 an ounce after the af-ternoon benchmark price was fi-nally set at US$287. The price forimmediate delivery rose 5.4% toUS$286.25 in London — the biggest one day gain since Sept. 28,1999.Gold stocks, meanwhile, rose inearly trading on the Toronto StockExchange.The Toronto Stock Exchange’sgold and precious metal prices in-dex was up 343.31 points or 7% to5250.72, before the market wasclosed in response the tragedy inNew York. The close was the high-est since May 22.Martin Potts, an analyst with Williams de Broe in London, saidthe market instinctively turns togold in times of terrible news. “Thefeeling is that this could get nastier.”Gold was not expected to be ontoo many radar screens yesterday.The Bank of England is today scheduled to sell off 20 tonnes of gold, and most traders would have been content to let the market ab-sorb the new supply before tryingto play the price.But the destruction of the two World Trade Center towers and theresulting evacuation of Manhattenrekindled interest in gold, whichhas historically been a safe place topark funds during internationalemergencies.“In a time of crisis, in a time of po-tential war, in a time of uncertainty,gold has been a safe haven and acommodity to have,” said John Ing,president of Maison PlacementsCanada. For example, familiesfrom Thailand and Indonesia wereable to preserve their fortunes by converting their holdings to goldand gold stocks prior to the col- lapse of their local currencies dur-ing the Asian meltdown of 1997.But generally speaking, it has been some time since gold playedits traditional role as a hedgeagainst inflation and panic. Goldprices, which peaked at aboutUS$850 in the early 1980s, have been in decline for 20 years.The seemingly endless bull mar-ket of the 1990s, combined withthe evaporation of inflation, left in- vestors from Europe and North America ignoring gold for other in- vestments. The U.S. dollar, for ex-ample, seemed to be just as invinci- ble as gold ever was. As a result,some of the recent geopolitical cri-sises, such as the 1991 Gulf War, re-sulted in a blip in prices. Yesterday’s brief flurry of trading led to one of the biggest jumps inmonths on the TSEgold and pre-cious minerals index.Barrick Gold Corp. of Toronto,for instance, the world’s largestgold company in terms of market value, rose 9.9% to end trading at$27.70. Placer Dome Inc. of Van-couver was up 7.1% to end tradingat $18.60.“Gold’s safe haven status remains,”said Greg Barns, chief executive of the Australian Gold Council, a pro-ducer-sponsored group. “Obvious- ly that’s not something the market would gloat about, given thetragedy that’s occurring. But gold’ssafe haven role is what we’re seeingat the moment.Gold has been valued from timeimmemorial. Portable, liquid andinstrinsically valuable, it was seenas the perfect way to maintain wealth.Gold prices were stable through-out the first half the nineteenthcentury. They took their first spikeduring the U.S. Civil War of theearly 1860s as investors sought toprotect their holdings.Prices stablized by the close of thecentury and remained relatively stable until the Great Depressionof the 1930s and World War Twofrom 1939-1945.“It was always used by a greatmany families not only as a meansof liquifying and maintaining the wealth, but it was also a way to getacross borders,” Mr. Ing said.In recent times, gold shot up- wards with oil crisis imposed by the Organization of Petroleum Ex-porting Countries in the early 1970s and the runaway inflation atthe end of that decade. Yet goldprices have been trending down- ward since inflation seemed tohave been brought under controlin the 1990s. “It’s a knee-jerk reac-tion,” said Tony Warwick-Ching, aconsultant with CRU Internationalin London.
 Financial Post with wiresdhasselback@nationalpost.com
RISES 5.7% IN LONDON
Gold soars as worried investors head for a haven
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BrazilianPresident Fernando HenriqueCardoso warned there could beeconomic difficulties for Latin America’s largest country after yesteray’s series of aerial attackson the United States.“It is probable that considering the virulent nature of these acts there will be consequences in the whole world, mainly economic,” Cardoso,president of the world’s fifth mostpopulous country, said.“And Brazil which is part of the world economy could be directly orindirectly affected by this turbu- lence and by the difficulties thatcould occur in the economic area,”he added.Brazil is among the world’s top 15economies and its economic perfor-mance has already deterioratedsharply this year due to worries overdebt-ridden neighboring Argentina,an acute energy shortage at homeand a plunging currency value.In the worst terror attack on theU.S. mainland in modern history,two hijacked planes slammed intothe twin towers of the World TradeCenter in New York — where about40,000 people work — and a thirdplane hit the Pentagon, across thePotomac river from Washington.The death toll, initially difficult tocalculate, was expected to be in thethousands.Shocked by the attacks, Brazilianinvestors sold stocks, plungingtheir value 9.2 percent Tuesday be-fore the Sao Paulo stock exchangesuspended trading for the day. Thereal currency plummeted to record low levels against the dollar, bring-ing its declines in the year to 27percent.But Cardoso added, “For nowthere is no reason for great worry.”Stock exchanges in the world’s fi-nancial center were shut down and would remain so Wednesday afterthe attacks, while markets the worldover plunged on concern that thefallout from attacks could furtherslow global economic output. Amid the uncertainty for the econ-omy, assets traditionally considered“safe haven” investments like oil andgold soared on the news. But inBrazil, economists worried in- vestors would become wary of hold-ing assets in emerging markets inLatin American nations, which gen-erally have a volatile history.Cardoso was speaking shortly be-fore a meeting of the National De-fense Council, Brazil’s highest de-fense authority.Cardoso, who earlier sent a state-ment to President Bush condemn-ing the attacks, said: “I want to reit-erate our expression of horror andcondemnation by the governmentand (Brazil’s) people.”The council’s members includeCardoso, the defense, justice andforeign ministers, and the top chief in Congress.“The terrorist acts that hit theUnited States demonstrate that thethreats to the free world are very realand that the biggest ones are thoseof suicide terrorist attacks,” DefenseMinister Geraldo Quintao said.
 Reuters
BRAZILFEARSITWILLSUFFERFROM ECONOMICSHOCK WAVES
‘THE MARKET ISREACTING WITHOUT A DOUBT TO THE AIRPLANES’ CRASH’
LATIN AMERICA CURRENCIES
 
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Global business ground to a halt yesterday, as the effects of theattack on the World Trade Cen-ter reverberated beyond lowerManhattan. As America’s largest trading part-ner, Canadians were most affectedas office towers were evacuated inToronto, air travel was halted and businesses closed early.Peter Godsoe, chairman and chief executive of Bank of Nova Scotia, left the podium in the midst of aspeech to business leaders inToronto to receive reports on the bank’s 300 Manhattan employees.“Our offices in New York are just astone’s throw away from the WorldTrade Center, which no longer ex-ists,” he told members of the bank’sinvestment forum. “I’m sure I willhave lost some friends as maybe allof us in the room will be touched, because it’s going to be bad.”Companies with ties to Americancorporations or to U.S. head officesexpect it will be at least a week be-fore business returns to normal.“It’s hit the heart and centre of the(U.S) economy,” said Cynthia Kee-shan, director of public relations atToronto high-tech incubatorBrightspark. Her company has been notified of the cancellation of scheduled conferences and callsover this week. One colleague at-tending a conference on a ship inNew York is now in international waters to make room for the U.S.Navy while another at a financialconference in San Francisco thathas been cancelled due to a wide-spread security clampdown.Cascades Inc. chief executiveLaurent Lemaire was in New Yorkto close a previously announceddeal to buy two U.S. mills, and thecompany was to hold a telephone briefing about the deal tomorrow.Company spokeswoman FrancineBenoit-Plamondon said the agree-ment wasn’t signed because ameeting was scheduled to takeplace a few blocks from the WorldTrade Centre.Ford Motor Company closed allof its plants in the United Statesand Canada starting with thesecond shift, primarily out of concern for employees’ peace of mind and material shortages,and closed its headquarters inDearborn, Mich., and regionaloffices in New York City and Washington as a “precautionary measure following the apparentterrorist attacks.”Ford expects nearly all of its fa-cilities in the United States andCanada will be open today, ex-cept New York and Washington.DaimlerChrysler AG, the third- largest automaker, closed its U.S.facilities, sending more than12,000 employees home but an-ticipates reopening this morning.“As a German-American enter-prise, we are in complete solidari-ty with the American people dur-ing this dark hour,” Daimler-Chrysler chief executive JuergenSchrempp said in a statement.General Motors Corp. closedthree assembly plants in Linden,N.J., Baltimore, and Wilmington,Del,. because of their proximity to New York and Washington,D.C., said Toni Simonetti, aspokeswoman for the largest au-tomaker. Most employees atGM’s headquarters in Detroitand its offices in New York weresent home.Canada’s largest electronics re-tailer, Future Shop Ltd. of Van-couver, conducting what is most likely its last annual meeting af-ter its acquisition by an Ameri-can rival, held a sombre annualmeeting devoid of the usual con-gratulatory executive speeches.“This is a terrible morning,” saidHassan Khosrowshahi, founderand chairman of the 88-storechain. “We have some businessto do and we will try to put it outof the way as quickly as possible.”Gerry Noble, chief executive of the Global Television Network,narrowly missed getting caught upin the crisis. He flew to New Yorkon Monday evening for a dinnermeeting and boarded a plane fly-ing back to Toronto just an hour before the first plane crashed intothe World Trade Center. The CBC,CanWest Global and CTVInc.television networks suspendedregular television programming last night to cover the crisis.Coca-Cola Co. sent the 4,000employees at its Atlanta head-quarters home yesterday asdozens of businesses and govern-ment agencies around the city shut down following terrorist at-tacks in New York and Washing-ton. Atlanta’s Hartsfield Interna-tional Airport, one of the nation’s busiest, was shut as the country’sair network was grounded,stranding about 30,000 people.Even Hollywood was not im-mune. The U.S. entertainmentcapital shut down yesterday astwo key awards shows and aMadonna concert were cancelledand most of Hollywood’s big stu-dios closed their doors and in-structed staff to go home.Sunday’s 53rd annual
 Prime-time Emmy Awards
 were post-poned indefinitely because of the attacks and organizers can-celled the second annual
 LatinGrammy Awards
show, a US$4-million music industry event which had been moved to Los Angeles from Miami for security reasons last month.“Who wants to be in a publicplace with thousands of peopleunder these circumstances?”said one Latin music executive.
 Financial Post  pbrent@nationalpost.comwith files from Sean Silcoff, Bar-bara Shecter and wire services
I
t is the way of the marketsand the people who trade inthem, that there is nothing —nothing — that is not a commer-cial opportunity. So, yesterday,the price of oil, gold and basemetals rose as the World TradeCenter towers fell, providingnimble traders with an opportu-nity to make some quick profitseven before the enormity of thecatastrophe was known. And then there’s the TorontoStock Exchange, which along with the Canadian Venture Ex-change and the Montreal Ex-change decided to open for busi-ness at 9:30 Eastern time, eventhough the New York Stock Ex-change, the Nasdaq Stock Mar-ket and the American Stock Ex-change had said they would at least delay their openings in light of the events unfolding inNew York and elsewhere.So, the TSE, which at timeshas been unable to open tradingdue to technical difficulties, de-cided it must be open for trad-ing on perhaps the one day itshould have at least stayedclosed until such time as its ma- jor U.S. counterparts couldopen. In the event, the TSE didsuspend trading at 10:40 a.m.,saying: “In response to theevents today in the UnitedStates, the Toronto Stock Ex-change has closed. TSE officials will be monitoring the situationand will issue a news release when a decision is made to re-sume trading.” A while later, of-ficials decided it wouldn’t openagain yesterday. A spokeswoman for the Cana-dian Venture Exchange said theCDNX collaborated with theTSE and the ME in making itsdecision. “We made our best de-cision that it should be businessas usual,” she said, adding thatthe CDNX isn’t tied to the NYSEor Nasdaq through interlistedstocks, as is the TSE.“Our goal is to protect the in-tegrity of the market and the de-cision was based on the best in-terests of investors.” When the NYSE has haltedtrading in response to plungesin the Dow Jones industrial av-erage, the TSE has also stoppedtrading, its officials realizingthat the connections betweenthe Canadian and U.S. market –indeed, between all markets –make a co-ordinated approachnecessary for a properly func-tioning market that is fair to allparticipants.Indeed, one Toronto money manager told us yesterday: “Anopen functioning market is acornerstone of democracy.“It’s not a forum for sympathy,for expressing sympathy forthose who got killed,” he said.“It’s not a secular temple. It’s aplace for allocating capital.”That said, to function properly,a market needs good informa-tion and access to it, and activeinvolvement by all the players inthe market.Indeed, a TSE spokesman said yesterday that the main ques-tion TSE managers will want toassess this morning before they make their decision on reopen-ing is whether there can be a fairmarket. Even if they believethey can open a fair market — which seems questionable to us— perhaps they should followthe lead of the NYSE and Nas-daq, which will be closed againtoday.That would make the mostsense, given the extraordinary circumstances. Yes, Canada is asovereign country, but this isone case where that doesn’tmake a bit of difference to theinterests of those involved.Common sense is in orderhere. TSE officials used theirs when they halted trading at10:40 after failing to employ itearlier. A senior brokerage official saidthe decision to open trading was“not terrible” under the circum-stance. True enough. What hap-pened in New York and else- where was terrible.
 Financial Post whanley@nationalpost.com
C3
FINANCIAL POST, WEDNESDAY, SEPTEMBER 12, 2001
 ©2001 Mercedes-Benz Canada Inc., Toronto, Ontario.A DaimlerChrysler Company.*MSRP for 2002 C320 Sport Wagon(optional sport package shown).Dealer may sell for less.
C320 SPORT WAGON.
At a
time when the stuff-to-kid ratio has never
been higher, we present the driving
enthusiast’s alternative to coping withit all: our brand new C320 Sport Wagon.Instantly, those sculpted eyes andthat aggressive pounce tell you that this
is a true Mercedes-Benz sport vehicle. Itsmuscular yet economical V-6 engine gets
you to 100 km/h in just 7.2 seconds. Its
Touch Shift transmission lets you control
the shifts in blissful sport style. And theinside story is all leather, laurel wood,fibre-optic 7-speaker audio… and room.Up to 1,800 litres, or five times the cargocapacity of our sedan.
So go ahead, have as big a life as you
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VALUEPRICED STARTING AT$52,850
*
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The Future of the Automobile
2.5 kids meet 3.2 litres.The new C320 Sport Wagon.
 W
ILLIAM
H
 ANLEY 
 Market Eye
Decision to tradenot ‘terrible— just ill-advised
 After 70 minutesTSE shifts course
BIGGESTTRADING PARTNER
Shockwaves hitsCanadahard
CHRISTINNE MUSCHI/ THE NATIONAL POST
Peter Godsoe of ScotiaBank left in the middle of a speech yesterday to receive reports from New York.
‘GOAL IS TO PROTECTTHE INTEGRITY OFTHE MARKET’
 AFTERMATH
BUSINESS STANDSTILL

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