World Trade Center attacks spark lawsuit

More than two years after terrorists brought down the World Trade Center, a federal jury will begin deciding a $3.5 billion question: Is the leaseholder entitled to collect insurance for one attack or for two?

Opening statements start Monday in the three-stage trial, which pits developer Larry Silverstein against 13 insurers. The outcome will determine whether Silverstein gets $3.5 billion or $7 billion to rebuild at ground zero.

Silverstein contends that the destruction of the World Trade Center constituted two attacks, because the twin towers were hit by hijacked airliners a little over 15 minutes apart.

Above, the twin towers of the World Trade Center burn Sept. 11, 2001, behind the Empire State Building in New York.

International

Dollar policy debated

The United States and its major economic allies were arguing Friday about how best to deal with the slumping U.S. dollar and America’s soaring budget and trade deficits.

The dispute surfaced at the winter meeting of the Group of Seven wealthy industrial countries — the United States, Japan, Germany, France, Britain, Italy and Canada — at a luxury resort on Florida’s Gold Coast.

The U.S. delegation, led by Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan, found itself at odds with officials from Europe who contend the dollar’s decline is hurting their growth prospects by jeopardizing European exports.

U.S. allies also fear that America’s soaring trade and budget deficits threaten to destabilize the global economy.

Layoffs

Cigna to cut 3,000 jobs

Cigna Corp. plans to eliminate about 3,000 jobs, almost 9 percent of its work force, as part of an effort to reduce operating expenses by about $300 million in 2004.

The announcement Friday came as the huge health insurance and employee benefits provider reported its fourth-quarter profit surged, beating analysts’ expectations.

But Cigna also announced plans to slash its quarterly dividend to 2.5 cents from 33 cents a share effective after the April payout, and its shares tumbled 8.9 percent in trading Friday.

Cigna, which has about 33,700 employees, expects that about 70 percent of the approximately 3,000 cuts will come from layoffs and about 30 percent from attrition, said Wendell Potter, vice president for corporate communications.

The cuts will come from a variety of areas. Final decisions have not been made on the types of jobs or locations to be cut, he said.

Markets

Dow ends losing streak

The Dow Jones industrial average surged 97.48, or 0.9 percent, to finish at 10,593.03, ending the week up 104.96, or 1.0 percent, after two weeks of selling. The Nasdaq composite index jumped 44.45, or 2.2 percent, to 2,064.01, although it fell 0.1 percent for the week due to a 52-point loss Wednesday, giving the tech-dominated index its third straight losing week.