Main economic events - 2001.

January

1 Greece becomes 12th member of EMU.

3 35-hour working week becomes law in France.

3 Sweden takes on EU Presidency.

3 Surprise interest rate cut by US Federal Reserve Bank by 0.5% to 6%.

3 Rolls-Royce wins 20-year maintenance contract for

4 ECB leaves interest rates unchanged at 4.75%.

5 UK government announces [pounds sterling]32m to be available from April for worst performing schools.

9 Two cabinet ministers resign from German government in response to growing alarm over BSE.

10 First fall in UK advertising spending since early 1990s indicates slowdown in economic activity.

11 Richard Branson loses to Camelot, for the second time, in bid to run UK lottery.

11 President Bush reaffirms priority commitment to free trade: Robert Zoellick new trade representative.

11 Bank of England decides not to cut UK interest rates: longest period without change since 1989-90.

11 Japanese stock market falls to lowest level for 2 years, triggering further alarm about Japanese banks.

14 Portugal's Socialist president Jorge Sampaio re-elected with substantial majority.

16 Underlying inflation in UK falls to lowest annual rate since records began in 1976.

16 Congo's president Laurent Kabila reported dead from gunshot wounds.

18 IBM report 4th quarter 2000 profits up 28%, exceeding expectations.

18 OPEC prepares to carry out threat to cut oil output by 1.5m barrels a day, starting 1 February.

19 Collapse of Estrada's government in the Philippines.

24 Peter Mandelson resigns from UK government, over involvement in Hinduja brothers passport affair.

24 European Commission demands that Ireland rein in expansionary economic policies.

25 Nissan Motors to make new car model in Sunderland.

26 Ericsson to end production of mobile phone handsets in bid to reduce huge losses.

26 Western India experiences most destructive earthquake in India's independent history: 50,000 dead.

30 Chrysler announces it is to shed 26,000 workers.

31 US Fed Reserve Bank cuts interest rates by half a percentage point, in response to news that American consumer confidence dived to a 4-year low in January.

31 Lockerbie trial in the Netherlands ends with one of the Libyan suspects found guilty.

February

1 Corus, Anglo-Dutch Company, announces 6,000 steel worker redundancies.

1 Amazon announces plans to cut 15% of workforce after prediction of low sales levels.

2 President Bush unveils $1.6 trillion tax-cut plan, presenting it as incentive for poorly paid workers.

3 Ecuador proclaims national state of emergency; there are protests against IMF-backed austerity measures.

5 Halifax group announces [pounds sterling]1bn deal to take over assets of struggling Equitable Life Assurance Society.

5 Vauxhall car company in UK announces [pounds sterling]200m investment in Ellesmere Port plant.

5 Ford plans [pounds sterling]226m expansion of Bridgend plant.

6 Ariel Sharon wins landslide victory in Israel's prime ministerial elections, defeating left-wing Barak.

7 Prime Minister Tony Blair pledges assessment of UK's joining euro currency will be made within two years of a Labour Party election victory.

7 Big demonstration in Kiev against alleged corruption and mismanagement of Ukrainian President Leonid Kuchna's administration.

8 Bank of England cuts interest rates by 0.25%, now 1% higher than euro-zone rates at 5.75%.

8 EU's Commissioner for the Internal Market, F. Bolkestein, argues against harmonising business taxes across the Union.

9 Electrolux announces plans to cut 2,000 jobs.

12 Ireland told by European Union to amend annual budget on the grounds that it would cause economic overheating and inflationary pressures.

14 BP Amoco announces more than doubling of after-tax profits in 2000 to $14.2bn.

16 American court rules Napster must stop allowing copyright material to be exchanged through its website.

17 Allied UK and US war planes strike at radar sites around Baghdad.

18 UN warns 200,000 face starvation in El Salvador after third earthquake. Fatalities from quakes of January 13 and February 15 total thousands.

18 Meeting of G7 ministers ends with committment to meet UN target of halving global poverty by 2015.

19 France's Usinor to acquire Luxembourg's Arbed and Spain's Aceralia, creating world's largest steel producer

20 Reports made of at least 1m refugees fleeing fighting and drought in Afghanistan now facing famine.

20 Survey shows Britain's 350 biggest quoted companies 2:1 in favour of joining the euro.

21 First UK outbreak of foot-and-mouth disease in 20 years: export of livestock, meat and dairy products banned.

22 Turkey floats lire as political situation unstable.

23 Volkswagen announces doubling of profits for 2000 to $1.9bn, with US sales particularly buoyant.

24 Reports of growth slowdown in UK household expenditure.

26 Sales of ISA's in UK reported down by more than 5%.

27 Equitable Life faces threat by Office of Fair Trading over exit penalty charges to customers.

27 Tony Blair announces emergency [pounds sterling]168m handout to farmers as ban on lifestock movements extended.

27 Innogy becomes UK's biggest electricity retailer in volume terms by agreeing to buy Yorkshire Power

March

2 Rolls-Royce profits for 2000 more than halved, from [pounds sterling]360m.

5 Swiss voters reject proposal to start immediate negotiations on joining EU.

7 UK budget presents modest tax cuts: 10p starting rate band for income tax raised from [pounds sterling]1,520 to [pounds sterling]1,880. Duty on betting abolished from 1 Jan. 2002. Alcohol taxes frozen. Landfill tax raised from [pounds sterling]11 to [pounds sterling]12 per tonne from April. Climate change levy comes into effect in April 2002. Maternity pay increased from [pounds sterling]60 to [pounds sterling]100 per week by 2003.

8 Bank of England leaves UK interest rates unchanged at 5.75%.

9 Intel to cut 5,000 jobs.

12 Strategic Rail Authority asks Government for more money for railways as transport problems continue.

12 Prudential suffers 14% fall in share price after announcement of $22.7bn all-share takeover of US insurer American General.

13 US stocks plummet after corporate profit warnings, steep falls in technology shares leading sell-off.

13 Motorola announces plans to cut 7,000 staff from its mobile handset operations.

13 Foot-and-mouth disease reported in France.

14 Cable & Wireless plans to cut 4,000 jobs over next 12 months, after shares fall 20%.

14 Dow Jones Industrial Average closes below 10,000 for first time since October 2000.

14 Nasdaq Composite falls back below 2,000 level. FTSE 100 closes at 5,625, lowest level since 1998.

14 ITV strikes [pounds sterling]100m 10-year deal with Societe Europeene des Satellites to put channel on satellite.

16 Figures published showing UK had strongest retail sales growth for 3 years in February.

16 12,000 homes in England's poorest areas linked to internet, in attempt by Government to avoid computer underclass.

16 Equity markets fall worldwide: safe-haven buying of US bonds and dollar send dollar to 15-year high.

19 BHP-Billiton merger set to create [pounds sterling]20bn mining and metals company.

20 Domingo Cavallo, economist who defeated hyperinflation in 1990s, returned to Argentinian government as economy minister in midst of political crisis.

20 US Federal Reserve Bank makes half-point cut in interest rates to 5% but leading equity indexes still fell to lowest level in 2 1/2 years.

20 Goldman Sachs' profits fell 13% in first quarter 2001.

20 Dutch government confirms foot-and-mouth disease has spread to Netherlands.

22 European share prices continue to fall: FTSE 100 index suffers biggest one-day drop since October 1992.

22 Business confidence in Germany and other European countries continues to fall. UK CBI reports 23% of manufacturers have below-normal order books.

24 EU summit in Stockholm questions current US commitment to cutting greenhouse gas emissions.

26 Common Agricultural Policy to be renewed by EU.

28 Ericsson to cut up to 37,000 jobs in Sweden and UK as sales of mobile phone handsets falter.

28 Nokia plans to cut up to 400 jobs.

28 Disney announces loss of 4,000 jobs.

30 Marks & Spencer withdraws outlets from European continent and 4,400 jobs go.

31 US 4th quarter economic slowdown 2000 shown to be sharper than anticipated.

31 Slobodan Milosevic arrested, to be tried firstly in Yugoslavia for corruption.

April

2 World Food Programme states 3 million need help in Sudan as result of drought and war.

2 Allianz confirms that plans to make $23.4bn takeover offer for Dresdner Bank.

3 SAir Group, owner of Switzerland's national airline, reports biggest loss in its 70-year history.

3 President Bush sends Congress $1.9Sbn budget, including tax cuts of $1.6 trillion over 10 years.

4 UK records 1000th case of foot-and-mouth disease.

4 President Bush rejects European officials' plea to reconsider US abandonment of Kyoto climate treaty.

4 EU affirms go-ahead on climate change action without US if necessary.

5 Bank of England reduces interest rates by 1/4% to 5.5%: UK mortgages now at lowest level for 36 years.

5 US Treasury urges Japan to speed up financial and economic reforms to improve growth potential.

9 US budget plans show deep cuts in federal government spending and in 10 of 25 government agencies.

9 Marconi announces set to cut 1,200 jobs in UK.

9 Tesco supermarket reports 13% rise in profits for year to February.

10 Eon plans to buy Powergen in deal worth [pounds sterling]9.6bn, which will make it world's largest power supplier.

11 US March employment figures show highest monthly rate fall for almost 10 years: jobless total 4.3%.

11 EU trade commissioner reaches agreement with US over banana trade dispute: sanctions to be suspended from 1 July.

18 US Federal Reserve Bank stuns markets with 1/2% cut in interest rates to 4.5%.

18 Figures for Chinese GDP show growth of 8% 1st quarter, year-on-year.

18 NASDAQ continues to soar to above 2,000 points, in spite of bad results from high-tech companies.

18 Philips electronics to cut up to 7,000 employees worldwide, because of falling sales.

18 President Bush, on eve of 34-country 'summit of the Americas', pledges negotiations on proposed free-trade area of the Americas.

20 Ericsson announces it is set to shed up to 15,000 jobs.

21 IMF's Economic Outlook predicts world economic growth will slow to 3.2% this year, down from 4.8% in 2000.

21 Merrill Lynch to cut back investment in banking division by up to 10%.

21 Ford UK's annual results to show record [pounds sterling]400m loss for 2000.

24 Morgan Stanley announces 1,500 staff cut.

24 Motorola announces closure of Scottish factory with loss of 3,100 jobs.

26 Junichiro Koizumi, pro-market supporter, becomes Japan's prime minister, after winning support of Liberal Democrat Party.

26 At Summit of the Americas in Quebec, all except Venezuela back plans for free-trade area of the Americas by 2005. Demonstration by 25,000 opponents of free trade at the summit.

28 G7 finance ministers meet in Palermo.

28 Q1 figures for US economy show surprise rebound, with growth rate at 2%.

30 German Chancellor proposes overhaul of EU's powers and institutions in bid to make them more democratic: wants to turn European Commission into a central government and a 2-chamber parliament.

May

1 Police clash with anti-capitalist demonstrators in London.

1 US Congress provisionally agrees $1.35 trillion tax cut spread over 11 years.

1 US economic growth for year to end March slowed to 2.7%, lowest year-on-year growth since Q1 1996.

1 British Telecom agrees to sell 20% stake in Japan Telecom, to reduce [pounds sterling]30bn debt.

2 Data released shows euro-zone manufacturing shrank in April for first time in 2 years.

7 In Italy, controversial tycoon Silvio Berlusconi wins general election.

7 Dell Computer, world's largest computer maker, to cut up to 4,000 jobs over next 2 quarters.

8 Surprise best leading stock market performer this year is Japanese market with TOPIX index up 5.8%.

8 Tony Blair calls the next general election for 7 June.

8 BP announces 7th consecutive quarter higher profits.

9 US retailers report relatively good sales growth for April.

10 General Electric of US regains no. 1 spot in FT500 survey of world's largest companies.

10 ONS figures show British manufacturing output fell 0.7% in Q1.

10 ECB and Bank of England cut interest rates by 0.25% amid growing concerns of global recession.

12 Finance ministers of Asia's leading economies conclude monetary co-operation agreement designed to prevent repeat of currency volatility that led to 1997 Asian financial crisis.

14 CBI reports biggest drop in business confidence since January 1999 by medium-sized manufacturers.

14 Spain blocks EU deal on movement of labour when new member states from Eastern Europe join Union.

15 British Energy the nuclear generator, to cut 400 jobs over next 4 years.

15 US Federal Reserve Bank cuts short-term interest rates by 1/2% to 4%. Dow Jones Industrial Average closes above 11,000 in reaction.

15 New US energy policy outlined in response to questioning of President Bush's environmental record.

15 UK court abolishes price fixing on over-the-counter medicines.

15 Figures show euro-zone inflation rose sharply to 2.9% in April.

15 ONS figures suggest that UK unemployment fell to new 26-year low in April. Average earnings grew in Q1 at the fastest quarterly rate in UK for 10 years.

16 Toyota unveils record profits and sales for the year to 31 March.

17 President Bush unveils national energy plan, mixing proposals to boost oil, gas and nuclear power production with conservation measures, in effort to avert spreading power cuts recently affecting US.

18 US and Britain draft new resolution on sanctions against Iraq, limiting military imports more strictly.

19 US trade deficit shows biggest one-month increase for 3 years.

21 US calls for immediate, unconditional end to violence between Israel and Palestine.

21 British Airways reveals quadrupling of operating profits to [pounds sterling]380m in 2000.

24 Railtrack reports needing [pounds sterling]2-3bn; first full-year loss of [pounds sterling]534m made since privatisation.

24 Growth in French and German economies shown to have slowed in Q1.

28 Figures suggest Japan on brink of recession. Industrial production down 20% on annual rate and unemployment rose to 4.8% over preceding 4 months.

June

1 US puts pressure on Israel to restrain from military action after suicide bomb kills 20 Israeli youngsters.

4 Peru's new President Alejandro Toledo brings restored democracy.

5 Shares in Railtrack plunge 17% to record low.

5 Exxon Mobil beat Royal Dutch/Shell to lead role in Saudi Arabia's $l5bn S. Ghauvon gas development project.

7 UK Labour Party win historic landslide in general election but turnout is low.

7 ECB leave interest rates unchanged at 4.5%.

8 Ireland's voters reject EU'S Treaty of Nice in referendum.

8 US workers' productivity falls by 1.2% in Q1 for first time since 1955.

8 Jack Straw replaces Robin Cook as foreign secretary. David Blunkett made Home Secretary. Number of women in new cabinet rises to record seven.

8 Pound drops 1 cent against dollar after election to new 15-year low and loses ground against euro.

10 Euro-zone growth shown to be slowing sharply and likely to fall below the 2-2.5% rate forecast by ECB.

11 Shares in Swissair take another dive.

11 Tony Blair adopts EU directive compelling companies to consult staff over job cuts and other restructuring issues.

11 UK government announces [pounds sterling]1.5m fund to train up to 1,000 lone parents and long-term jobless for financial services industry.

12 BT and Deutsche Telekom to join forces in building 3rd-generation mobile networks in UK and Germany.

13 Michael Portillo promises new era of moderation in his bid to become leader of UK Conservative Party.

13 Third largest banking group in France to be created by merger of Caisse des Depots et Consignations and Mutual Caisse d'Epargne.

14 US and EU leaders commit themselves to launching ambitious World Trade Round meeting in Doha.

15 President Bush offers firm support for expanding NATO alliance further into Eastern Europe.

15 Nortel Networks warn of $19.2bn quarterly loss, a record for the computer industry.

15 IMF figures show inflation in developed world rose to highest level for 7 years in May.

15 Inflation in many European countries rose in May; In France inflation rose to 2.3% from 1.8% in April, and industrial performance shows signs of decline.

16 EU leaders make EU enlargement irreversible at Gothenburg summit.

18 Independent Insurance company goes into voluntary liquidation.

18 Euro-zone inflation shown to have risen above 3% in May.

18 Tony Blair begins talks designed to save Northern Ireland peace process.

19 Airbus wins biggest ever order for 111 aircraft, worth $8.7bn [pounds sterling]6.2bn).

21 EC president says EU enlargement can continue despite Irish referendum result, angering Irish government.

22 German IFO index shows business confidence at a 2-year low.

24 US stockbroker Merrill Lynch reveals it has shed 5% of total workforce in the year so far.

25 UK government launches first comprehensive review of energy needs for 20 years, with focus on possible revival of nuclear power.

25 Bank of England in interest rate dilemma, as economy becomes unbalanced.

26 UK economy grew faster than expected in Q1.

26 UK government defeated in European Court of Justice: millions of short-term workers gain right to paid holidays.

26 UK rail leaders blame each other for chaotic state of rail system.

27 US Fed Reserve Bank cuts short-term interest rates by 1/4% to 3.75% in further attempt to boost economy.

27 Philips to end manufacture of mobile phones.

28 World's largest industrial takeover attempt collapses, as EC witholds approval for General Electric's bid for Honeywell in US.

28 In Japan and Europe, sales of luxury goods shown to be holding firm.

29 EC and World Bank pledge [pounds sterling]900m to Yugoslavia as reward for extradition of Slobodan Milosevic to wax crimes tribunal.

30 Austrian riot police clash with anti-globalisation demonstrators at Salzburg Economic Summit.

July

1 Belgium's six-month presidency of EU begins.

1 US lifts [pounds sterling]134.7m of sanctions imposed on European exports over EU's banana import regime.

3 US Commerce Department reports new orders to US factories jumped 2.5% in May, fastest pace in nearly a year

5 Marconi announces another 4,000 job cuts and anticipates halving of operating profits this year. Shares dive 54%.

5 Shares in European advertising companies have fallen sharply, following US trend.

6 Emerging markets currencies suffer some of steepest one-day falls since 1998. Financial stability of Argentina and Turkey is in doubt.

7 Race riots continue in UK, with disturbances in Bradford, following those in Oldham and Burnley.

7 G7 ministers meet in Rome and state confidence in prospects for world economy.

9 Zidane, French footballer, becomes world's most expensive player, at [pounds sterling]47m.

9 Sir Edward George warns strength of dollar is damaging US and European economies.

9 British and Irish governments begin talks in Stafford-shire over Northern Ireland peace process.

10 Economic figures for Singapore show it went into recession in Q2.

10 Figures show US dollar hits a 16-year high in real trade-weighted terms.

11 Inward investment in UK reported at record levels for 4th successive year.

12 Rioting in North Belfast: 55 police officers injured.

13 China wins bid to stage 2008 Olympics in Beijing.

15 India and Pakistan on the brink of new understanding at summit in Agra.

16 Equitable Life customers to have value of pensions slashed by 16%.

16 No breakthrough made over Kashmir at talks in Agra.

17 Robert Kiley sacked by UK government as chairman of London Transport.

17 US industrial output fell in June for 9th month running.

17 UK inflation rate stayed at 2.4% in June.

18 Accenture, formerly Andersen Consulting, becomes public company, with shares valued at $14.50.

19 Jeffrey Archer, former UK government minister, begins 4-year jail sentence for perjury.

19 Strategic Rail Authority tells government it needs to spend [pounds sterling]10bn more to sort out rail industry.

20 Genoa summit of world leaders marred by violence, with thousands of anti-globalisation demonstrators.

22 Indonesian president declares state of emergency as country is in constitutional crisis.

23 New measures introduced to try to prevent spread of foot-and-mouth disease in North Yorkshire.

23 Kyoto Protocol rescued in Bonn: 178 countries agree to curb greenhouse gas emissions.

24 Exxon Mobil reports record Q2 profits of $4.38bn.

24 Tamil Tigers raid Sri Lanka's Colombo airport, blowing up half national airline's commercial fleet.

25 OPEC to cut oil output by 1m barrels a day, in effort to stabilise crude oil prices.

26 Tony Blair and Chancellor Brown draw up timetable for euro referendum.

26 NTL, UK's biggest cable operator, to axe up to 5,000 more jobs over next 2 years.

27 Japan's stockmarket recovers slightly after hitting 16year low.

29 Pirelli and Benetton gain control of Telecom Italia and mobile phone unit TIM.

30 Department for Environment Food and Regional Affairs discloses cost of foot-and-mouth disease to the taxpayer has risen to [pounds sterling]2.28bn.

31 Halifax Group announces it has 1/4 of home loans market, by sacrificing profit margins for volume.

August

2 Bank of England surprises financial markets with 1/4% cut in main interest rate to 5.0%.

2 Rio Tinto group announce 24% jump in interim earnings.

3 Car bomb explodes in central London, believed to be by Real IRA.

3 Figures show growth in UK service sector has slowed sharply, falling to 2-year low in July.

3 IMF to lend Brazil up to [pounds sterling]10.Sbn over next 15 months, to help cope with fall-out from growing economic crisis in Argentina.

6 British manufacturing slides into recession - Q2 figures worst since 1991.

7 German economic slowdown severe, as unemployment rises for 7th consecutive month.

9 Government rejects calls for public inquiry into handling of foot-and-mouth crisis.

9 Palestinian Hamas group kills 15 and injures 90 with suicide bomb in Jerusalem.

10 US industrial production ends 3.2% down in year to July.

12 Another suicide bomb in Israel wounds 15.

12 Macedonia's government and ethnic Albanian rebels agree to NATO-brokered ceasefire.

13 Morgan Grenfell name set to disappear, as Deutsche Bank to fold MG Private Equity into DB Capital Partners.

13 Pound falls to 5-month low against euro, dragged down by sharp fall in dollar.

14 Ethnic Albanian rebels in Macedonia agree to hand over weapons to NATO.

14 IRA withdraws earlier proposal on how it will dispose of arms.

14 Bank of Japan eases monetary policy, pumping more money into banking system.

14 On India's Independence Day, Indian Prime Minister blames Pakistan for wrecking relations between the two countries.

16 ONS figures for July show retail sector had strongest growth for 5 years.

16 Growth in German economy ground to halt in Q2, but Bundesbank says it is not on course for recession.

17 Taiwan reports worst fall in GDP for 25 years, with Q2 GDP contracting by 2.35%.

17 US reports no end in sight to slide in US trade with rest of world.

17 Vauxhall motors discloses pre-tax losses of [pounds sterling]191.7m.

17 Ford to axe up to 5000 jobs in North America as part of operations overhaul.

19 Sweeping restructuring at Fijitsu could involve 15,000 job losses.

21 US Fed Reserve Bank makes 1/2% cut in interest rates to 3.5%.

21 IMF announces it will offer extra [pounds sterling]55bn to Argentina in effort to stave off default on its debt and to boost depleted currency reserves.

22 Germany's IFO index rebounds in July to raise hopes of economic recovery.

22 Bradford & Bingley building society to shed 500 jobs.

25 New session of Congress opens in Mexico with major tax and energy reforms.

26 Statistics show quadrupling in profits warnings by UK companies in first 6 months of year.

27 NATO's operations in Macedonia begin. British soldier killed.

27 More new cases of foot-and-mouth confirmed in Northumberland.

27 Toshiba, second largest semiconductor manufacturer, to axe 18,800 jobs and slash capital spending.

28 US consumer confidence fell in August for second consecutive month.

28 Gateway, personal computer manufacturer, to cut 25% of workforce worldwide.

29 Norway reports Australia to UN after refusal to take in hundreds of asylum seekers packed on Norwegian freight ship.

30 IMF forecasts UK economy will grow 2.1% this year, against Gordon Brown's forecast of 2.25-2.75%.

30 Dow Jones Industrial Average falls below 10,000.

30 ECB cuts interest rates for second time this year to 4.25%.

30 Gloomy economic news in Japan suggests it could be on brink of recession.

31 Hitachi to slash 14,700 jobs worldwide.

September

3 2,000th case of foot-and-mouth disease is confirmed in Cumbria.

3 Demand for factory goods in UK in August fell sharply.

4 Marconi's chairman and chief executive in US ousted company losses of nearly [pounds sterling]56bn emerge.

5 Concorde regains certificate of airworthiness.

5 France Telecom reports debt of 65bn euros after year of investments in 3rd generation mobile phones.

10 Corus, Anglo-Dutch steelmaker, announces pre-tax loss of [pounds sterling]230m.

10 Norway's Labour Party wins general election with very much reduced vote from previous years.

11 Terrorist attacks in US shock the world. Suicide bomber attacks in New York, Washington and Pittsburgh cause paralysis in markets. Final death toll thought to be over 3,000, the victims being from 80 countries.

11 President Bush vows revenge on attackers. Equities in European bourses sent lower.

12 UK unemployment shows rise to 1.491m.

13 President Bush calls on other world governments to fight 'new kind of terrorism'. Support offered from leaders of China and Russia.

13 lain Duncan Smith wins Tory leadership election.

13 UK retail sales figures show 6.3% rise in August.

14 US prepares for prolonged military response to terrorist attacks.

16 Figures show top 500 international companies raised R&D spending by 10% to $290bn in 2000.

17 Equity trading reopens in all US stock markets, including New York, after 4-day closure.

17 Fed Reserve Bank and ECB cut key interest rates by 1/2% but fail to stop equity prices falling sharply.

17 Central banks across the world also cut interest rates.

18 Bank of England joins global wave of rate cuts, reducing main rate by 1/4%.

19 Royal Dutch/Shell company cuts forecasts for growth: shares subsequently hit across sector.

19 British Airways announces emergency measures in response to world airline crisis, including thousands of job cuts.

19 Cable & Wireless issues second profits warning in 7 months, as profits fall to 9-year low.

19 Gavyn Davies, newly appointed BBC chairman, quits Labour Party to show political independence.

19 World Trade Organisation agrees terms for China's entry into WTO after 15 years of negotiations.

19 IRA makes fresh offer on arms decommissioning in Northern Ireland.

20 Leading airlines threaten to halt services because of reduced insurance cover.

20 Ministers in emergency talks with airlines.

20 UK exports fell 1.9% in July, lowest level in a year.

20 Bank of Japan lowers assessment of Japan's economy for 4th month running as exports decline.

20 In speech to Congress, President Bush issues ultimatum to Afghan's Taliban rulers to hand over terrorist Bin Laden and his associates, and to close down terrorist bases.

21 US and UK ready themselves for joint military action against Osama Bin Laden and terrorist network in Afghanistan.

21 Bush administration offers $l5bn aid package to US airline industry, on top of $3bn emergency aid for air security upgrades.

21 UK Treasury agrees to provide war and terrorism insurance to airline companies, so that airlines can continue flying for the next week.

21 At EU finance meeting in Liege, common EU approach is agreed towards cover for airlines against attacks.

21 In face of potential global recession, world equity markets tumble. Dow Jones Industrial Average records worst performance of Index since 1933.

23 Brazil's currency, the real, reaches record low, despite central bank intervention.

23 Washington announces US lifting all sanctions imposed on Pakistan and India in 1998, after Pakistan's decision to provide full support to war on terrorism.

23 Majority of economists say they expect US economy to be in recession in last 2 quarters of 2001.

23 Largest military build-up since Gulf War in 1991 continues as US readies for strikes on Afghanistan.

23 Some UK forces depart for the Gulf.

23 In Poland, opposition Social Democrats win slender majority in national elections, to form country's first one-party government since collapse of communism.

23 Israeli Prime Minister Ariel Sharon vetoes meeting between Peres and Arafat, further hindering attempts to calm Israeli-Palestinian conflict.

24 President Bush unveils sweeping powers to seize assets of international terrorists.

24 Swissair seeks up to [pounds sterling]1.3bn of new equity by transforming itself into low-cost airline.

24 100,000 job cuts announced by major airlines in total in recent days.

25 Switzerland's upper house of parliament votes to join UN, but without forgoing neutrality.

27 British Airways reports loss of [pounds sterling]48m of reserves during 2 weeks since 11 September.

27 Chancellor of the Exchequer Gordon Brown promises tight rein on public spending to finance military campaign.

27 Rioting in Belfast results in 33 police officers injured.

27 Pakistan to receive extra [pounds sterling]llm from government to ease deepening humanitarian crisis caused by refugees fleeing Afghanistan.

28 In the wake of September 11 attacks, earnings and profits warnings are issued from various companies from various sectors, e.g. Cordiant Communications, Bank of New York.

31 Morgan Stanley to axe around 200 jobs.

31 Bank of Japan survey of business sentiment shows steep decline in confidence over the past weeks.

October

1 Swissair files for bankruptcy.

1 Marconi share values fall 29% to 30-year low.

1 Worldcom, US telecom and internet group; to cut 1,000 jobs in Europe.

2 US Federal Reserve cuts interest rates for 9th time this year, down 1/2% to 2.5%.

2 German unemployment figure hits 9.4% in September.

2 Credit Suisse First Boston plans to cut 2% of global investment banking staff.

3 US government offers emergency aid package worth over $50bn to help avoid economic slump in wake of New York attacks.

3 Syria given 2-year seat on UN Security Council by UN General Assembly.

4 Bank of England cuts interest rates by another 1/4% point, to 4.5%.

4 Three cases of Anthrax confirmed in Florida, raising fears of bioterrorism worldwide.

5 Q2 figures on UK company profitability show fall to lowest level in 5 years.

6 Railtrack collapses as ministers refuse to hand over any more state subsidies.

6 Air attacks by US and British forces launched on targets in Afghanistan.

8 UK figures show manufacturing output up in August by 1.4%, sharpest growth in more than 2 years.

10 Share prices surge on both sides of Atlantic, despite military action.

10 Nobel prize for economics is won by Akerlof, Spence and Stiglitz for work on asymmetric information.

11 British Chamber of Commerce survey of UK industry in Q2 reports manufacturing industry in critical condition.

12 American company Polaroid collapses into bankruptcy.

12 US Commerce Department says retail sales sank in September at fastest rate for 9 years.

12 British government declares end to ceasefire of Ulster Defence Association.

13 US on high alert following case of anthrax contamination in New York.

14 Cost of bailing out Swissair twice as much as first thought, at [pounds sterling]1.2bn.

15 Tony Blair and Yassir Arafat meet to try to re-invigorate Middle East peace process.

16 China's economic growth slowed to 7% in Q3, year on year

17 Bayerische Hypo-und Vereinsbank, Germany's second largest bank, to axe 3,000 jobs.

18 Retailers in UK report increased sales for September, despite attacks in New York.

19 Israel steps up military action after murder of Israeli minister by Palestinian terrorists.

23 IRA begins decommissioning weapons in Northern Ireland, after pleas from Sinn Fein.

24 Nine Palestinians die in assault by Israeli troops in West Bank.

25 ECB holds interest rates. US economic performance shown to be very weak for September.

25 In Q3, Britain's economic growth accelerated: UK fastest growing of all G7 economies.

25 New anthrax alert in US government agencies.

27 Members of WTO move a step closer to new global trade round in Qatar.

29 Easyjet plans to raise [pounds sterling]90m in share issue as pre-tax profits rise by 81%.

30 Japan's unemployment rate rose to postwar high of 5.3% in September.

30 US consumer confidence plunges to lowest level in 7 years.

31 US GDP contracted by 0.4% in Q3, first shrinkage of economy for 8 years.

31 Shares in Enron, world's biggest energy-trading company, continue downward to lowest level since 1992.

November

1 ICI, chemicals giant, set to axe further 1,300 jobs in Europe, US and Asia.

2 US job losses in October recorded at 415,000.

2 David Trimble fails to win re-election as Northern Ireland's First Minister.

2 Prudential insurance company to axe 2,100 jobs and drop its Scottish Amicable brand.

3 Middle East airline Emirates announces future [pounds sterling]10bn orders for Airbus and Boeing.

3 Attempted bomb attack by Real IRA in Birmingham; bomb fails to explode.

5 Nicuragua's presidential election won by businessman Bolanos.

5 UK government ministers set in motion biggest shakeup in planning law in 50 years, as necessary improvement for business conditions.

6 Germany announces contribution of almost 4,000 troops to war in Afghanistan.

6 US Fed Reserve Bank cuts short-term interest rates by another 1/2%.

6 Sabena airline files for bankruptcy.

6 British Airways profits collapse in Q2.

7 British government produces White Paper on reform of House of Lords.

8 Scotland's First Minister resigns over undeclared rental income affair

8 Europe's leading central banks cut interest rates by 1/2%.

8 Bank of England cuts interest rates by 1/2% point, to 4.0%.

9 Japanese economy forecast to undergo contraction of 0.9% in year to March 2002- a dramatic decline.

11 Home Secretary David Blunkett proposes emergency anti-terrorist bill, enabling imprisonment of suspected terrorists without trial.

12 American Airlines Airbus crashes in New York killing 260.

13 Kabul liberated from Taliban by Northern Alliance troops in Afghanistan.

14 WTO members agree in Qatar to launch trade liberalisation round in January, due to last 3 years.

15 Dispute between OPEC and Russia over production costs pushes oil prices to lowest since mid-1999.

15 October retail sales in UK fall for first time in 18 months.

18 In year's biggest merger deal, oil and gas companies Conoco and Phillips Petroleum unveil $35bn plan.

19 According to Anglo-German Foundation study, London remains Europe's top financial centre.

20 Government gives go-ahead for fifth terminal at Heathrow airport.

20 September US trade deficit represents biggest ever monthly drop in figures.

22 Norway and Russia set to cut oil output to boost world oil prices.

22 German economy in recession after second successive quarterly decline.

26 US economy declared officially in recession.

26 President Bush demands that Iraq allow UN weapons inspectors into the country.

28 Wanless Report commissioned by UK government reports underfunding and understaffing of NHS. Quality of care has fallen behind by world standards.

29 UK personal borrowing rose by record amount in October.

30 Quarterly figures show US economy shrank at fastest rate for a decade in 3 months to September.

December

2 Pressure increases on Yasser Arafat to act against Hamas after bombings kill 25 in Israel.

2 Power group Enron files for bankruptcy protection.

3 CIPS survey in UK suggests manufacturers are cutting employment at fastest rate for 3 years.

5 Dow Jones Industrial Average rises past 10,000 points, renewing optimism for recovery.

6 President Bush wins vote in House of Representatives to get fast-track powers to approve trade agreements.

7 Argentina holds crisis talks with IMF in Washington to stave off financial collapse as peso devalues.

7 In Afghanistan, Taliban era ends with surrender of Kandahar.

7 Packard foundation says to vote against Hewlett-Packard's $2S.3bn takeover of Compaq Computer.

10 Fiat unveils restructuring plan with loss of 6,000 jobs.

10 Yen pushed to 8-year low against dollar after grim economic data on Japan's economy revealed.

11 China becomes 143rd member of World Trade Organization.

11 Britain's Chancellor warned by IMF over plan to increase public spending.

11 US Fed Reserve Bank cuts interest rates by 1/4%, to lowest for 40 years at 1.75%.

12 IGL, UK computer company, to axe 1,500 jobs following drop in sales.

12 Fourteen die in Israeli-Palestinian conflict.

13 President Putin laments decision by US to withdraw from Anti-Balistic Missile treaty.

13 Twelve killed in attack on India's parliament thought to be by Kashmir terrorist group.

13 Arafat under siege from Israeli forces in West Bank.

13 British Airways offered [pounds sterling]40m by British Government to compensate for impact of 11 September.

17 US antitrust officials recommend US government rejects plan by British Airways and American Airlines to operate as one airline.

17 Shares in British NTL fall to new low.

17 Argentina announces $9bn spending cuts to try to avoid default on $55bn debt.

18 London's Milleniun Dome to become sports and concert venue.

18 Motorola in US says it will cut another 9,400 jobs over next 12 months.

19 Argentina in state of siege: 4 people reported killed as economic crisis worsens.

19 US trade deficit rebounds sharply to pre-September 11th levels.

20 Goldman Sachs reports Q4 earnings fell 17%.

20 De la Rua resigns as president amid chaos in Argentina and entire cabinet steps down.

20 UK growth estimates revised upwards as performance exceeds other G7 countries more than anticipated.

20 British troops arrive in Afghanistan to form part of International Security Assistance Force.

21 Tony Blair promises Vladimir Putin he will push for greater Russian collaboration with NATO.

23 Argentina announces the largest sovereign debt default in history. New government to create third currency to kick-start shattered economy.

26 Diplomatic tension increases between India and Pakistan.

27 German survey shows bleakest economic prospects since recession of 1992-3.

28 Signs of stabilisation in US economy with sharp rebound in consumer confidence.

28 UK bank HSBC signs deal to take 8% stake in Bank of Shanghai.

29 UK equity market set to record 2nd consecutive annual decline.

30 Figures show losses of UK car-makers fell to record [pounds sterling]1.7bn in 2001.

30 UK foot-and-mouth epidemic has resulted in slaughter of 5.9 million animals.

30 Pakistan and India continue military build-up on border.

30 Argentina's President Saa resigns after one week in power, after defaulting on $l55bn public debt. Two governments brought down since 20 December.