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1. UK Faces Longest Recession Ever
The Bank of England’s outlook for the United Kingdom economy projects a two-year recession, which would be the longest recession in the country’s history, the BBC reports. The bank raised interest rates from 2.25% to 3%, the largest spike in 33 years.
The recession began this past summer and will continue into the first half of 2024, the bank said.
"The most important thing the British government can do right now is to restore stability, sort out our public finances, and get debt falling so that interest rate rises are kept as low as possible," Jeremy Hunt, chancellor of the exchequer, said.
2. Global Stocks Dip
Global stocks fell Thursday in response to the Federal Reserve raising its short-term lending rate 0.75 percentage points to 4%, the Associated Press reports. Fed Chairman Jerome Powell said more rate hikes are likely in the future, reinforcing fears of a possible recession.
“Recession risks are rising, but that is the price the Fed is prepared to pay to get inflation under control,” said James Knightley, Padhraic Garvey and Chris Turner of global financial institution ING in a report.
Stock market indexes in cities such as Hong Kong, Shanghai and London fell Thursday. Interest rates have increased across Europe and Asia to combat inflation, as well.
3. Hyatt, Marriott Report Earnings
On earnings calls with analysts Thursday, Hyatt Hotels Corp. and Marriott International executives boasted strong performance across their hotel portfolios in the third quarter.
Hyatt CEO Mark Hoplamazian said the company had the strongest third quarter in its history, crediting the return of core demand segments, HNN’s Sean McCracken reports.
Marriott’s global revenue per available room rose above 2019 levels for the first time since the pandemic started, CEO Tony Capuano said. HNN’s Bryan Wroten reports the company’s global RevPAR increased 2% compared to the third quarter of 2019.
4. Pilot Unions, Airlines in Tense Contract Talks
Airlines have largely failed to strike agreements with pilot unions on contracts that would increase pay and improve schedules, the Wall Street Journal reports. United Airlines and American Airlines have struck out with offers this week, and Delta Air Lines pilots are threatening to strike.
“Our pilots have essentially had enough,” said Jason Ambrosi, chairman of the union that represents Delta’s pilots.
United Airlines pilots turned down a 14.5% pay increase Tuesday, and American Airlines pilots turned down a 20% pay increase Wednesday.
5. Holiday Travel Prices Are Up
Airfare and hotel rates have increased sharply year over year by 35% and 11%, respectively, the Washington Post reports. This comes amid increased demand for travel for the holiday season.
“If you haven’t booked your holiday flights, you really need to start pulling the trigger, because the longer you wait, they are going to max out in terms of seat capacity, and so you may not find a seat,” Brett Keller, CEO of Priceline, said. “And two, the prices are just going to keep going up from here.”
Hayley Berg, lead economist at the travel-booking app Hopper, said Thanksgiving prices are increasing 5% per week, and will start to increase $50 per day in the week leading up to the holiday.