Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
Heathrow Airport has warned the aviation industry is facing a “long-haul recovery” after the omicron variant sparked a wave of canceled flights last month.
The UK’s largest airport has revealed that at least 600,000 Heathrow passengers travel plans canceled in December, after the discovery of the Omicron variant resulted in travel restrictions being imposed.
For 2021 as a whole, Heathrow says it saw just 19.4 million passengers – less than a quarter of 2019, before the pandemic, when it handled 80.9 million. It’s also about 12% less than in 2020 (when it handled 22.1 million passengers).
And the outlook looks uncertain, Heathrow warns, as it urges ministers to drop Covid-19 testing for fully vaccinated passengers to encourage travel.
- There is significant doubt about how quickly demand will recover. IATA forecasts suggest passenger numbers will not reach pre-pandemic levels until 2025, provided travel restrictions are removed at both ends of an itinerary and passengers have confidence that they won’t come back quickly
- We urge the UK government to end all testing for fully vaccinated passengers now and to adopt a manual for all future variants of concern that is more predictable, limits additional measures only to passengers arriving from high-risk destinations and allows the quarantine at home rather than indoors. hotel
Also coming today
European markets are expected to open higher, after concerns about a possible rise in US interest rates hit stocks on Monday.
Wall Street pulled off a late rally last night, after the Nasdaq Composite Index plunged into corrective territory (10% from its record), ahead of Wednesday’s US inflation report.
Asia-Pacific stocks fell today, however, as the Australian S & P / ASX fell 0.8%.
Kyle rodda of IG Explain :
Stocks were left behind today with sentiment on the ASX200 particularly weak.
Global pressures resulting from increased volatility on Wall Street and fears of a tightening of global monetary policy are likely to blame for this, as is a market discounting slightly lower profits from what is shaping up to be quite a big blow to the Australian economy because of the current COVID-19 outbreak.
Investors will be eager to hear from Federal Reserve Chairman Jerome Powell today when he appears before the Senate Banking Committee for a confirmation hearing.
Powell, who has been appointed for a second term, will be asked about the Fed’s plan to control price hikes and its recent hawkish turn.
In testimony released overnight, Powell said the central bank was ready to take action to ensure high inflation does not take hold, while stressing that the post-pandemic economy may be different from it. that she was before.
- 9:30 a.m. GMT: World Economic Forum releases 2022 Global Risks Report.
- 9:30 a.m. GMT: UK labor productivity statistics for the third quarter of 2021
- 11 a.m. GMT: NFIB index of optimism in American companies
- 3 p.m. GMT: confirmation hearing for US Federal Reserve Chairman Jerome Powell before the Senate Banking Committee