BHP expects tough times

BHP management is conducting detailed analysis on the potential future economic effects of the September 11 terrorist attacks and what these could mean for BHP Billiton operations. Whilst this could mean the temporary closure of some operations it also signifies that the company will be in a better position to be able to take advantage of opportunities arising out of the downturn.

The review conducted by BHP Billiton signifies the reach of the events of September 11 into industries other than insurance and aviation. The biggest stock movement within insurance has been QBE which fell from $10 to $3.70 after revealing it had exposure to the terrorist attacks. Qantas, while initially receiving a boost from a flagging Ansett, has since fallen from $3.40 to $2.85 and back to $3.37 as it experiences reduced capacity on its international flights.

Most analysts agree that there are few if any signs of a recovery at this point and that trading in this market should be for experienced traders only.