back in the markets, Recession fears Copper pulled to its lowest level this year.
Copper, seen as a measure of economic health, fell to $8,955 a ton in London trading, after hitting its lowest level since early October.
Fears of an economic slowdown are weighing on metal prices, due to fears of weak demand – especially if the Covid-19 shutdown in China continues to affect factory operations.
ANZ commodity strategists said in a note.
This comes amid uncertainty over the outlook for demand in China. The renewed outbreak of COVID-19 has cast doubt on the recovery from the shutdowns that have slowed industrial activity.
Sophie Lund Yates, equity analyst at Hargreaves Lansdown says:
This year’s summer season was meant to be a festival of resilience for airlines, a chance to show their strength in overcoming the pandemic, and successfully transport customers on their long-awaited holidays.
Instead, the industry has been hit by a PR firestorm, as a shrinking workforce recedes under the weight of returning demand, leading to last-minute cancellations. EasyJet has now announced plans to consolidate its planned departure listwith the hope that most customers will be able to rebook without changing their check-out date.
From a financial perspective, these plans will prolong easyJet’s full recovery. The costs that come with reserve expansions are huge. So while an apology is being offered from customers today, any deviation from the new plan would mean the same courtesy would be due to shareholders.
Underneath all the noise, trends are positive. Crucially, the demand for travel is there. Not being able to fully service this request is a blatant disgrace, but it bodes well for the future.”
Participate in easyJet It fell 3.3% in early trading, to the bottom of the FTSE 250 index of medium-sized companies traded in London.
And the city reported this morning that costs will be higher than previously directed, due to travel disruption and the “enhanced flexibility” it puts in place.
EasyJet plans to cut an unspecified number of flights at Amsterdam’s Schiphol Airport this summer, Dutch news agency ANP reported, citing a spokesperson.
Easyjet is one of the largest customers at the airport, behind the Dutch arm of Air France-KLM.
The move follows a decision by Schiphol last week to limit the number of passengers allowed at the airport during peak season, which led to a 16% drop in planned flights, due to insecurity and other airport workers (via Reuters).
Johan LundgrenAnd the easyJet The CEO, says cutting flights will increase flexibility over the summer, after the airline shorted some passengers.
“Providing a safe and reliable operation for our customers in this challenging environment is a top priority for easyJet and we regret that for some customers we have not been able to provide the service they have come to expect of us.
“While the actions we have taken in recent weeks to build more flexibility have seen us continue to operate up to 1,700 flights and carry up to a quarter of a million customers per day, unfortunately the ongoing challenging operating environment has continued to have an impact leading to cancellations.
“Alongside airport caps, we are taking precautionary measures to increase flexibility during the summer period, including a range of additional flight consolidations at affected airports, giving advance notice to customers and expecting to rebook the vast majority on alternative flights within 24 hours.
“We believe this is the right course of action for us so that we can offer it to all of our customers during the peak summer period in this challenging environment.”
Budget airline easyJet He is cutting more flights in an effort to avoid a repeat of the travel chaos that passengers have experienced in recent months.
EasyJet has announced that it will reduce its capacity until the end of September, after announcing covers for flights at London Gatwick and Amsterdam.
The airline – one of the companies hardest hit by the recent unrest – is working to “proactively boost” a number of flights through affected airports. It says this will give customers advance notice and the ability to rebook alternative flights.
EasyJet cites problems such as delays in air traffic control, understaffing in ground handling and at airports, staff shortages including cabin crew, and delays in getting ID cards so new hires can start.
These problems have prompted the identification of flights at Gatwick and Schiphol in the past few days.
EasyJet says it expects the majority of customers to be rebooked on alternative flights, with “many” on the same day as originally booked.
The cuts mean EasyJet will operate on about 90% of its pre-pandemic (2019) flights in July-September, down from the previous target of 97% of pre-Covid flights.
Capacity in April-June will be around 87% of pre-Covid levels, down from the previously expected 90%.
Good morning, and welcome to our renewed coverage of business, the global economy, and financial markets.
Fears of a possible global recession cast a shadow over global stock markets today, as economic data falters and inflation continues to rise.
Last week, stock markets posted their biggest percentage drop in two years, as investors feared global central banks could push economies into recession as they try to stem rising prices.
It is indisputable that economies are losing pace.
Treasury Secretary Joe Biden Jeanette softens She says she expects the economy to “slow down” but continues to insist that a full-blown recession is “not at all inevitable”.
Yellen told this week’s ABC host George Stephanopoulos that her financial forecast is a result of how the economy is growing at a very rapid rate, as the economy and labor market have recovered and we’ve reached full employment.
“Now it’s normal for us to expect a transition to steady, stable growth, but I don’t think a recession is ever inevitable.”
Some Asia Pacific markets take more losses today, with Japan Nikki by another 1% and South Korea Cosby down 2.4%.
This takes global markets further into a bear market (more than 20% from the recent peak).
Hebei Chenmarket analyst at IGEveryone’s talking about a slump now, he says, but the official definition of “two consecutive quarters of slump” might sound pale and dry:
The market just last week painted a typical picture of a recession that ticked almost all the boxes: Inflation flying to the surface, interest rates rising nonstop, two leading indicators of US stocks [S&P 500 and Nasdaq] Trapped in a Bear Market (with 3research and development on the way) and investors are selling shares of the best companies.
Last but not least, commodity prices began to fall.
Stocks fell last week as stock prices fell we federation Spare announced the largest interest rate increase in 15 years, and Bank of England It raised interest rates to a 15-year high, and Switzerland raised rates surprisingly.
Despite this market turmoil, central bankers continue to signal that they will take price pressures out of their economies.
Federal Reserve Governor Christopher Waller On Saturday, he vowed to take a whatever it takes to combat inflation, suggesting that the Federal Reserve may repeat its three-quarter-point rate hike last week next month.
Waller told the Computer Society economics conference in Dallas.
“The Fed is ‘everything’ in re-establishing price stability.”
The cryptocurrency crash continued over the weekend, with Bitcoin Drops Below $20,000 Saturday Ahead of Sunday’s rebound, which still leaves it down 70% from record highs
Also soon today:
Wall Street will be closed while America celebrates Eleventh National Independence Day.
We’ll hear from BoE policymaker Catherine Mann when she delivers a speech on “Monetary Policy in the Global Context” at an event run by MNI Market News.
MPC Fellow Jonathan Haskell delivers the keynote address at the TechUK Policy Leadership Conference.
Mann and Haskell wanted to raise interest rates in the UK from 1% to 1.5% last week, while the majority of MPC members pushed for a smaller increase to 1.25%. With other central banks tightening their policy aggressively, some economists believe the Bank of England could raise by 50 basis points in August.
schedule of work
- 07:00 GMT: German PPI for May
- 9 a.m. GMT: MPC Member Jonathan Haskell’s speech: “Reshaping the future: How to fix the intangible economy.”
- 10 am GMT: Eurozone Construction Output Report for April
- 11 am GMT: The monthly report of the German Bundesbank
- 2pm GMT: MPC Member Catherine Mann’s speech: ‘Monetary Policy in the Global Context’