A week for news from the travel industry

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Updates to the world economy

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Welcome (back) to the work week.

I am grateful to have had the opportunity to take a week of annual vacation given the restrictions on leaving the house this year. The question for those in the travel, tourism, and hospitality industries is whether it will make this process easier and quick enough to avoid long-term scars. This week we might get a little glimpse.

First there are the airlines. It’s not a good time to be in the industry, as Qantas Airways and Air New Zealand will no doubt show when they release their quarterly and full-year results. The future does not look bright either, given concerns about climate change.

But hope wells forever in the industry. This week, the second largest British airport Gatwick, which is suffering badly, starts its expansion campaign. It wants government support for its plan to convert its second runway, currently only used in emergencies, into a permanent facility to add 55,000 additional flights per year.

Another indicator for the future will be consumer confidence data, first from the EU, then for Germany, France and Norway, as well as quarterly GDP estimates for Germany and the US. The UK government will (hopefully) add some clarity with an update of their overseas traffic light system.

How do you see the economic picture in the coming months? Write me an email at [email protected]

Companies

One group to cheer for this week is Hays, the recruiting company, which will be reporting annual results 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 for the economy in general, and expectations are high after Hays saw net fees rise 39 percent reported during its fourth quarter. Attention is drawn to how much this business growth has cost as consultants are paid on a commission basis and new contracts will be required to be hired. During the pandemic, Hays cut its cost base by 13 percent. The question now is whether it was possible to make this stick.

Economic data

A key set of economic statistics released this week will be IHS Markit’s monthly purchasing managers index reports, which cover France, Germany, the euro zone, Japan, the UK and the US. While 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 talk to FT correspondents and guests about The Fall of Afghanistan: What Next? Register for an FT subscriber Webinar Wednesday, August 25th at 3:30 p.m. CET, 2:30 p.m. BST / 9:30 a.m. EDT.

Important economic and company reports

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

Monday

  • The EU and the European Commission show figures on consumer confidence

  • France, Eurozone, Germany, Japan, Great Britain, USA: IHS Markit Composite Purchasing Managers’ Index (PMI)

  • UK, Monthly CBI Industry Trends Survey

  • UK, Office for National Statistics Household income, expenditure and wealth data

Tuesday

  • Germany, GDP growth figures Q2

  • United States 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

Thursday

  • Germany, monthly GfK survey on consumer confidence

  • Nigeria, GDP figures for the second quarter

  • Russia, inflation outlook

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

  • UK, Bank of England capital issue data

  • USA, Bureau of Economic Analysis Q2 GDP estimate

  • USA, 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, Hong Kong Monthly Real Estate Data

  • France, National Institute for Statistics and Economic Studies, Consumer Confidence Figures

  • Norway, Monthly Consumer Confidence Statistics

  • RESULTS: Lukoil Q2

World events

Finally, an overview of other events and milestones this week.

Monday

  • UK deadline for offering a first dose of Covid-19 vaccine to all 16 and 17 year olds in England

  • 25th anniversary of bin Laden’s declaration of war on the United States

Tuesday

  • Japan, Tokyo 2020 Paralympic Games begin

  • United States, Vice President Kamala Harris begins tour of Southeast Asia to bolster American regional leadership with a visit to Singapore

  • US, Kathy Hochul becomes first woman to run New York State when Andrew Cuomo resigns

  • UN Security Council meeting to discuss Syrian political and humanitarian issues

  • The UN Human Rights Council holds an extraordinary session on Afghanistan

Wednesday

  • UK, International Beatleweek Festival starts in Liverpool

  • UN Security Council debates Iraq mission and North Korea sanctions

Thursday

  • Great Britain, election result for the new general secretary of the union Unite, the largest single donor to the Labor party

  • UK, Update on the Government’s Foreign Traffic Light System

  • UK, Home Office publishes immigration statistics

Friday

  • United States, Central Bankers Annual Jackson Hole Economic Symposium. Downgraded to a one-day virtual event last week due to Covid-19 risks

  • Music festivals in the UK, Reading and Leeds begin. Both are sold out.

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