Subways and buses across New York shut down this morning as transit workers walked off the job after failing to agree with management on a new contract, stranding millions of travellers.

NEW YORK mayor Michael Bloomberg yesterday defended his decision to go public with the threat that terrorists might want to strike the New York subway system, saying it is essential that authorities err on the side of caution when protecting a city of eight million people.

Mayor Michael Bloomberg today defended his decision to go public with the threat that terrorists might want to strike the New York subway system, saying it is essential that authorities “err on the side of protecting the public” in the city of 8 million people.

Authorities in New York today closed part of Penn Station as commuters headed to work under the watchful eyes of police after a newly disclosed terror threat against the city's subway system.