Fears of a global recession loom over the markets; easyJet cuts more live business flights Business

Shares in easyJet fell 3.3% at the beginning of trading, to the bottom of the FTSE 250 index of medium-sized companies traded in London.

He told City this morning that the costs would be higher than previously expected due to travel disruptions and the “increased resilience” it is implementing.

People waiting in line at Schiphol Airport in Amsterdam, the Netherlands, last week. Photo: Piroschka van de Wouw / Reuters

Easyjet intends to cut an unspecified number of flights to Amsterdam’s Schiphol Airport this summer, the Dutch news agency ANP reported, citing a spokesman.

Easyjet is one of the largest customers at the airport, behind the Dutch division of Air France-KLM.

The move follows Schiphol’s decision last week to limit the number of passengers allowed at the airport during the peak season, leading to a 16% reduction in scheduled flights due to a lack of security and other airport workers (via Reuters).

EasyJet: We are sorry that some customers did not receive the expected service

Johan Lundgren, easyJet The CEO says the reduction in flights will “increase resilience” in the summer after the airline failed to get some passengers.

“Ensuring safe and reliable work for our customers in this challenging environment is easyJet’s top priority and we regret that some customers have not been able to provide the service they expected from us.

“While in recent weeks the steps we have taken to build further resilience have allowed us to continue to operate up to 1,700 flights and carry up to a quarter of a million customers a day, the continuing challenging operating environment has unfortunately continued to have an impact. cancellation.

“Combined with airport restrictions, we are taking precautionary measures to increase resilience over the summer, including a number of additional flight consolidations at affected airports, notifying customers in advance and expecting the vast majority to be re-booked for alternative flights within 24 hours.

“We believe this is the right action we need to take to be able to deliver to all our customers during the peak summer period in this challenging environment.”

EasyJet is shortening flights until the end of September

Budget airline easyJet is cutting back on more flights in a bid to avoid a repeat of the travel chaos suffered by passengers in recent months.

EasyJet has announced that it will reduce its capacity by the end of September, after restrictions on flights to London Gatwick and Amsterdam were announced.

The airline – one of the worst affected by the recent shutdown – is “proactively consolidating” a number of flights through the affected airports. This will give customers advance notice and the potential to reschedule alternative flights, it said.

EasyJet points to problems such as delays in air traffic control and staff shortages at groundhandling and airports, staff shortages, including cabin crew, and delays in approving personal documents so that new hires can begin.

These problems have led to flight restrictions in Gatwick and Schiphol in the last few days.

EasyJet says it expects to book the majority of customers for alternative flights, with “many” on the same day they were originally booked.

The cuts mean EasyJet will operate about 90% of its pre-pandemic flights (2019) from July to September, lower than its previous target of 97% of pre-Covid flights.

Capacity in April-June will be around 87% of pre-Covid levels below 90%.

Introduction: Markets fear a global recession

Good morning and welcome to our ongoing coverage of business, the global economy and financial markets.

Fears of a possible global recession weigh on global stock markets today as economic data deteriorates and inflation continues to rise.

Last week, stock markets saw their biggest percentage decline in two years as investors worried that global central banks would push economies into recession as they struggled to contain rising prices.

And there is no argument that economies are losing pace.

Treasury Secretary Joe Biden Janet Yellen he says he expects the economy to “slow down”, but continues to insist that a full recession is not “inevitable at all”.

Yellen told ABC This Week presenter George Stefanopoulos that her financial outlook was the result of “the economy growing at a very fast pace as the economy, as well as the labor market, recovered and we reached full employment.”

“It is natural to expect a transition to stable and stable growth now, but I do not think that a recession is inevitable at all.

Some Asia-Pacific markets are making additional losses today, compared to Japan Nikkei falls by another 1% in South Korea COSPI a decrease of 2.4%.

This takes global markets further into a bear market (more than 20% of their recent peak).

APAC Update: #ASX 6419 -0.86%#NIKKEI 25608.55 -1.37%#HSI 20936.78 -0.66%#HSHARES 7302.28 -0.89%#HSTECH 4572.08 -1.75%

— IGSquawk (@IGSquawk) June 20, 2022


Hebe Chenmarket analyst in IGsays everyone is now talking about a recession, but the official definition of “two consecutive quarters of decline” may sound pale and dry:

Chen explains:

Last week, the market just painted a typical picture of a recession that marked almost all the boxes: inflation is flying to the roof, interest rates are constantly rising, two major US stock indexes [S&P 500 and Nasdaq] are trapped in the bear market (with 3rd one on the road) and investors sell shares to the best companies.

Last but not least, commodity prices are starting to fall.

Shares fell last week since US Federal Reserve announced its biggest interest rate hike in 15 years, the Bank of England raised interest rates to a 15-year high, and Switzerland made a surprising interest rate hike.

Despite this market turbulence, central bankers continue to signal that they will push price pressures out of their economies.

Federal Reserve Manager Christopher Waller on Saturday, he vowed to follow any approach to fighting inflation, signaling that the Fed could repeat the three-quarter increase in interest rates from last week.

“If the data comes as I expect, I will support a similar move at our meeting in July,” Waller said at a conference of the Society for Computational Economics in Dallas.

The Fed is “all in” to restore price stability.

The crypto crash continued over the weekend, with bitcoin falling below $ 20,000 on the Saturday before Sunday’s rebound, leaving it 70 percent lower than its record high.

Massacre in the crypto sphere continued as major cryptocurrencies crashed through several closely watched price levels not seen since 2020. #Bitcoin, the flagship of DeFi, failed to pull the handbrake at $20,000 psychological level and finished the week at $19,047.20. #trading pic.twitter.com/Jy2Rq5P2IA

— accapitalmarket (@accapitalmarket) June 20, 2022


The crypto massacre continued as major cryptocurrencies collapsed through several closely monitored price levels not seen since 2020. # Bitcointhe DeFi flagship failed to pull the handbrake on a psychological level of $ 20,000 and ended the week at $ 19,047.20. #trade pic.twitter.com/Jy2Rq5P2IA

– accapitalmarket (@accapitalmarket) June 20, 2022

Also coming today:

Wall Street will be closed while America celebrates National Independence Day on June 16.

We will hear Bank of England politicians Catherine Mann give a speech on “Monetary Policy in a Global Context” at an event hosted by MNI Market News.

Jonathan Haskel, another member of the Monetary Policy Committee, delivered a keynote address at the TechUK Policy Leadership Conference.

Both Mann and Haskel wanted to raise interest rates in the UK from 1% to 1.5% last week, while a majority of MPC members called for a smaller increase to 1.25%. As other central banks tighten their policies, some economists believe the BoE could rise by 50 basis points in August.

The agenda

  • 7 am BST: German PPI producer price index for May
  • 9 a.m. BST: Speech by MPC member Jonathan Haskell: “Restarting the Future: How to Fix the Intangible Economy.”
  • 10:00 a.m. BST: Eurozone construction performance report for April
  • 11:00 BST: Monthly Report of the German Bundesbank
  • 14:00 BST: Speech by MPC Member Catherine Mann: “Monetary Policy in the Global Context”

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