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A week for travel industry news

Welcome (back) to the working week.

I am thankful to have had the ability to have taken a week’s annual leave given the constraints on getting out of the house this year. The question for those working in the travel, tourism and hospitality sectors is whether that process is going to be made any easier, and quickly enough, to avoid long-term scarring. This week, we might get a little insight into that.

First, there are the airlines. It is not a good time to be in the industry, as Qantas Airways and Air New Zealand will no doubt reveal when they report quarterly and full-year earnings respectively. The future also looks none too bright either given concerns about climate change.

But hope springs eternal within the sector. This week, the UK’s second largest airport Gatwick — which is suffering badly itself — will kick off its campaign for expansion. It wants government backing for its plan to convert its second runway, currently only used in emergencies, to a permanent facility to add 55,000 extra flights a year.

Another indicator of the future will come with consumer confidence data, first from the EU, then for Germany, France and Norway, and quarterly gross domestic product estimates for Germany and the US. The UK government will (hopefully) contribute to some clarity with an update on its foreign travel traffic light system.

What is your view about the economic picture in the coming months? Drop me a line at jonathan.moules@ft.com.

Companies

One group with something to cheer about this week is Hays, the recruitment company reporting full-year earnings on Thursday. The rebound in employment in the UK, its home market, has been a source of hope amid the Covid-19 gloom not just for this group but the economy in general, and expectations are high after Hays reported a 39 per cent increase in net fees during its fourth quarter. Attention will be focused on how much this business growth has cost given that consultants are paid on commission and hiring will be necessary to service new contracts. During the pandemic Hays cut its cost base by 13 per cent. The question now is whether it has been able to make that stick.

Economic data

A key set of economic statistics released this week will be the monthly purchasing managers’ index reports from IHS Markit, covering France, Germany, the eurozone, Japan, the UK and the US. Although not official data, the international nature of the PMI calculation makes it a useful tool for comparing the relative economic progress of these countries.

Finally, a plug for a special Financial Times event this week. You can join FT correspondents and guests to discuss The Fall of Afghanistan: What Next? Register for an FT subscriber webinar on Wednesday August 25 at 3:30pm CET/2:30pm BST/09:30am EDT.

Key economic and company reports

Here is a more complete list of what to expect in terms of company reports and economic data this week.

Monday

  • EU, European Commission flash consumer confidence numbers

  • France, eurozone, Germany, Japan, UK, US: IHS Markit Composite Purchasing Managers’ Index (PMI) data

  • UK, CBI monthly industrial trends survey

  • UK, Office for National Statistics household income, spending and wealth data

Tuesday

  • Germany, Q2 GDP growth figures

  • US, Department of Commerce July residential sales figures

  • US, State Street monthly investor confidence Index

  • RESULTS: Best Buy Q2, Polyus Q2, PureTech H1, Wood H1

Wednesday

  • US, Durable goods orders

  • RESULTS: Grafton Group H1, National Bank of Canada Q3, Qantas Airways H1

Thursday

  • Germany, GfK monthly consumer confidence survey

  • Nigeria, Q2 GDP figures

  • Russia, Inflation outlook

  • UK, Society of Motor Manufacturers and Traders monthly car production figures

  • UK, Bank of England capital issuance data

  • US, Bureau of Economic Analysis Q2 GDP estimate

  • US, Initial jobless claims

  • RESULTS: Air New Zealand FY, Bouygues H1, Brunello Cucinelli Q2, CRH H1, Dell Technologies Q2, Hays FY, HP Q3, Polymetal International H1, TCS Group Q2

Friday

  • China, Monthly Hong Kong property data

  • France, National Institute of Statistics and Economic Studies consumer confidence figures

  • Norway, Monthly consumer confidence figures

  • RESULTS: Lukoil Q2

World events

Finally, here is a rundown of other events and milestones this week.

Monday

  • UK, Deadline for all 16- and 17-year-olds in England to be offered a first dose of a Covid-19 vaccine

  • 25th anniversary of Bin Laden declaring war on the US

Tuesday

  • Japan, Tokyo 2020 Paralympic Games begin

  • US, vice-president Kamala Harris begins tour of south-east Asia to strengthen American regional leadership with visit to Singapore

  • US, Kathy Hochul becomes first woman to lead New York state when Andrew Cuomo steps down

  • UN Security Council meeting to discuss Syria’s political and humanitarian issues

  • UN Human Rights Council is to hold an extraordinary session on Afghanistan

Wednesday

  • UK, International Beatleweek Festival starts in Liverpool

  • UN Security Council debates Iraq mission and North Korea sanctions

Thursday

  • UK, Election result for the new general secretary of the Unite trade union, the largest single donor to the Labour party

  • UK, Update on the government’s foreign travel traffic light system

  • UK, Home Office publishes immigration statistics

Friday

  • US, Annual Jackson Hole Economic Symposium of central bankers. Downgraded last week to a one-day virtual event owing to Covid-19 risks

  • UK, Reading and Leeds music festivals begin. Both are sold out.


Source: Economy - ft.com

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