12/09/2001

As the US reels from the devastating attacks on New York, Washington and Philadelphia with many thousands of people believed to be killed and seriously injured, the long-term negative effects to the world financial markets are beginning to be made apparent. The destruction of the twin towers of the World Trade Centre on the morning of the 11th of September, in effect the hub of major US and international business (the WTC was home to Morgan Stanley, Bank of America, Credit Suisse and Deutsche Bank), has destabilised not only global currency exchanges, but more importantly internal consumer confidence which was the backbone to the American economy in its efforts to resist recession. Billions of dollars have already been wiped out in international stock market crashes from the day’s attack alone, but it is also feared that the phychological effects may be so severe that the economic downturn will deepen. Life insurance claims for those killed is also expected to spiral into many billions of dollars. In the art world, to which Gabriuszine reports on daily, the consequences may be dramatic, as New York is scheduled to hold auctions in Old Master paintings on the 3rd and 5th of October at Christie’s and Sotheby’s, both situated within walking distance from the scene of these terrible events. These auctions begin the autumn auction season which in turn will focus on London, Paris, Berlin, Rome and Milan in the coming weeks and months. Art market confidence was already low prior to these attacks, due to recessionary fears, profit downturns, auction house mergers and downsizing, and a shortage of quality artworks available. (Andrew Moore)