Some reaction to Ryanair’s announcement:
Ryanair to cut services due to Boeing 737 Max crisis
Ouch. Budget airline Ryanair has announced plans to shutter some services, after being hit by the crisis around Boeing’s 737 Max plane.
With the 737 Max still grounded, Ryanair has been forced to slash its passenger growth forecast for summer 2020 to just 3%, from 7%.
It had previously expected to take delivery of 58 of Boeing’s new jets by next summer, but this has now been revised down to 30 (assuming the plane is cleared to fly again, following two crashes claiming hundreds of lives).
CEO Michael O’Leary warns that this disruption will forced Ryanair to stop flying to certain airports — a blow to passengers, and also staff on the ground who could be laid off.
This shortfall in aircraft deliveries will necessitate some base cuts and closures for summer 2020, but also for the winter 2019 schedule.
We are starting a series of discussions with our airports to determine which of Ryanair’s underperforming or loss making bases should suffer these short term cuts and/or closures from November 2019.
Here’s the full story:
Introduction: UK jobs report
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Today we discover how Britain’s labour market is faring in the face of continual Brexit uncertainty and a slowing global economy.
Economists are hopeful that the UK’s unemployment remained low in the three months to May, matching the 3.8% recorded a month ago. It’s not been lower since the mid-1970s.
The employment total could also remain at record levels, tipped to rise by around 45,000 over the last quarter.
But are workers benefitting? The City expects basic pay (excluding bonuses) to have grown by 3.5% per year, up from 3.4% a month ago.
David Madden, market analyst at CMC Markets, says strong wage growth would boost the economy.
Should the wages rate tick up it should bode well for the British economy as workers who earn more usually spend more.
Konstantinos Anthis, head of research at ADSS, expects a decent jobs report.
Despite the mess the Brexit process has been in throughout the year, the labor market in Britain continues to showcase a rather robust performance and today’s figures should confirm that.
Economists expect job and wage growth to have picked up marginally last month while the unemployment rate probably remained steady.
Also coming up today
New US retail sales figures, and the latest ZEW report on German economic sentiment, could also move markets today.
Finance ministers and central bankers from the G7 countries are meeting in Chantilly, near Paris. They’ll be discussing European plans to impose higher taxes on US technology giants, despite a backlash from America.
French finance minister Bruno Le Maire is due to discuss the issue with Treasury secretary Steven Mnuchin. The White House has already opened a so-called “Section 301 investigation” into the measure — that’s the same tool used to underpin the trade war with China.
On the corporate front, JP Morgan and Goldman Sachs are both reporting results before the Wall Street bell.
- 9.30am BST: UK unemployment report – expected to remain at 3.8% in March-May, lowest since 1974
- 10am BST: ZEW survey of German economic confidence.
- 1pm BST: Bank of England governor Mark Carney speaks
- 1.30pm BST: US retail sales for June – growth of +0.2% expected, from +0.5%