"TERRORIST ATTACKS ON THE UNITED STATES"
Henderson Global Investors extends its sympathies to all those affected by yesterday`s terrible events in the US. Henderson are relieved to report that none of our staff was involved in the attacks.
All of our offices are operating normally. Henderson has, however, decided to suspend trading of units in all products impacted by US capital markets until proper pricing procedures are able to resume.
With regard to markets, the following summarises our reaction to yesterday`s events:
Following the terrorist attacks in the US, financial markets have reacted strongly. The incident will inevitably have a variety of direct and indirect effects on the US economy, although it is too early to say to what extent this will have global consequences.
We expect markets to remain unsettled for some months for the following reasons:
· The extent of US consumer reaction is unclear, but a marked drop in spending would hamper the economy`s expected year-end recovery.
· Although the oil price has so far reacted reasonably well to these events, this could be undermined by adverse political developments.
It is worth noting, however, that during previous political crises, such as the invasion of Kuwait or the attempted coup in Russia, the global backdrop was very different to now, and we would not expect markets to react as dramatically. The main reasons for this are:
· Stockmarkets have already fallen sharply from peak levels.
· The global economy has already slowed significantly in 2001.
In the short term, markets will inevitably focus on the possible knock-on effects of any US retaliation.
We will keep you informed of any major developments in markets over the coming weeks."
