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| Version 3 | Version 4 |
|---|---|
| Economic worries push stocks down | Economic worries push stocks down |
| (about 2 hours later) | |
| Concerns about the state of world economies have sent global stock markets falling sharply. | Concerns about the state of world economies have sent global stock markets falling sharply. |
| The drops came despite a dramatic interest rate cut from the Bank of England and a smaller reduction from the European Central Bank. | The drops came despite a dramatic interest rate cut from the Bank of England and a smaller reduction from the European Central Bank. |
| In New York the Dow Jones plummeted 443.2 points, or 4.9%, nearly matching Wednesday's 486 point slide. | |
| In Europe, London's FTSE 100 closed down 5.7%, Frankfurt's Dax dropped 6.8% and the Cac 40 in Paris fell 6.4%. | In Europe, London's FTSE 100 closed down 5.7%, Frankfurt's Dax dropped 6.8% and the Cac 40 in Paris fell 6.4%. |
| Interest rates were cut in an attempt to boost consumer spending and business activity to try to avoid a prolonged slowdown. | Interest rates were cut in an attempt to boost consumer spending and business activity to try to avoid a prolonged slowdown. |
| "Extraordinary times require extraordinary actions," said Stuart Porteous, head of RBS Group Economics, commenting on the Bank of England's decision to cut rates by an "unprecedented" 1.5 percentage points to 3%. | "Extraordinary times require extraordinary actions," said Stuart Porteous, head of RBS Group Economics, commenting on the Bank of England's decision to cut rates by an "unprecedented" 1.5 percentage points to 3%. |
| Meanwhile, the European Central Bank cut its key rate by half a percentage point to 3.25%. | Meanwhile, the European Central Bank cut its key rate by half a percentage point to 3.25%. |
| Earlier in Asia, Japan's Nikkei index had closed down 6.5% while Hong Kong's Hang Seng dropped 7.1%. | Earlier in Asia, Japan's Nikkei index had closed down 6.5% while Hong Kong's Hang Seng dropped 7.1%. |
| 'Back to reality' | 'Back to reality' |
| A raft of economic data released this week has underlined the case for rate cuts. | A raft of economic data released this week has underlined the case for rate cuts. |
| Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector had suffered a sharper-than-expected drop in activity during October. | Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector had suffered a sharper-than-expected drop in activity during October. |
| On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy. | On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy. |
| "We had a week of rebound and then we're coming back to reality" said Francis Lun, general manager of Fulbright securities in Hong Kong. | "We had a week of rebound and then we're coming back to reality" said Francis Lun, general manager of Fulbright securities in Hong Kong. |
| "Despite the world euphoria over the election, the world's economy hasn't changed," he added. | "Despite the world euphoria over the election, the world's economy hasn't changed," he added. |