Good morning. Welcome to rolling coverage on the global economy, financial markets, euro area and business.
Travel stocks have fallen this morning after the UK government has removed Portugal from the “green list” of countries that are exempt from significant travel restrictions.
The decision to add Portugal to the amber list hit the aviation industry just weeks after Britain lifted restrictions on international flights.
This warns that the crisis in the aviation industry will be exacerbated, and the union is calling on the minister to provide further support.
The move has been severely criticized by the tourism industry, which wanted more countries to be added to the “green list,” which means passengers do not need to be quarantined on their return.
As a result, the news that Portugal moved to Amber on June 8 and seven countries, including Egypt and Sri Lanka, are on the “red list” of destinations that require hotel quarantine has shaken the sector. It was.
Jet engine maker Rolls Royce,Whose Engine maintenance projects rely on planes to extend flight timeIt has fallen almost 2.5% this morning, the largest drop on the prestigious FTSE 100.
British Airways Owners Shares IAG As Portuguese news surfaced, it fell another 1.5% in early trading, in addition to a 5% drop on Thursday.
Travel stocks FTSE 250 index, low cost carrier EasyJet It fell 1.5% (it fell 5% yesterday). Wizz AirI warned this week that if the restrictions were not relaxed, I would suffer more losses.
In Dublin Ryanair It fell another 1%.
This move also hit the cruise sector. carnival Has decreased by 2%.
Travel stocks fell by about £ 2 billion due to yesterday’s plunge as earnings outlook from Portugal travel diminished.
Secretary of Transportation Grant Shapps has blamed concerns about new coronavirus mutations and increasing cases of this movement.But Portugal called this decision “immeasurable”..
The airline, along with EasyJet’s boss, opposed the plan. Johann Langren,say it:
“The government has destroyed its own rulebook, ignored science, confused people’s plans, and had few notices or alternative options for travel from the UK. This decision essentially made the UK the rest of the world. It is something that separates from. ”
Trade unions are also concerned about the move, and future Secretary-General Mike Clancy warns that the industry is at risk of losing “half the summer.”
“This news today is further evidence of the instability facing the aviation industry this summer. Government advice changes regularly, so it is imperative to provide adequate financial support for this sector.
“Even in the most optimistic scenarios, we face losing half of the summer before vacationers can confidently book trips to major destinations.
Clancy added that given the uncertainty, the government needs to consider more to support the sector.
“The government has begun to phase out lifeline temporary leave plans four weeks later, which only contributes to the harmful uncertainty facing the aviation industry.
Ministers need to clarify that additional assistance is available to assist in their work while tourism restrictions continue. Without it, there is a risk that the industry will no longer exist when regulations are lifted. “
Investors are preparing for the latest US employment statistics, non-farm payrolls, showing whether US employment slowed in April and then recovered in May.
According to economists, the number of new hires last month was about 650,000, up from 266,000. The surge in employment is clearly welcome. U.S. economy Since the pandemic, 8 million jobs have still been lost.
However, stronger-than-expected NFPs could shake markets, raise concerns about inflation, and central banks could discontinue stimulus.
Ricardo Evangelista, Senior analyst ActivTrades,I will explain:
The market story has been dominated by the risk of high inflation, which is a side effect of the enormous stimulus in progress. The Fed has so far refused to blink, arguing that price spikes are likely to be temporary and that further contractions could adversely affect economic recovery. ..
Employment is likely to be a decisive factor in this tug of war, and high reading could start the Fed thinking about shrinking current monetary and asset purchase policies. Looking at today’s rise in the dollar It seems that many investors are already preparing for such a scenario.
G7 Treasury Ministers meet in the UK for a two-day meetingThey seek to use tax havens to launch breakthrough deals to end tax avoidance by multinationals and leading tech companies that exploit loopholes in global systems.
The UK and Norway are about to sign a trade deal, with a formal announcement scheduled for today..
British sources say City AM The deal could reduce Norwegian tariffs on UK agricultural exports such as beef and cheese and increase access to Norwegian fish imports into the UK.
- All-day: G7 Treasury Ministers’ Meeting
- UK Summer Time 9 AM: UK Car Registration in May
- 9:30 AM BST: May UK Construction PMI Report
- 10am BST: Eurozone retail sales
- 1:30 pm BST: May US Non-Agricultural Employment Report
- 3:00 pm BST: US Factory Order
Travel stocks whose Portuguese “green list” has been removed.US Employment Report-Business Live | Business
Source link Travel stocks whose Portuguese “green list” has been removed.US Employment Report-Business Live | Business