From the desks of the Hotel News Now editorial staff:
- Virus worries catch up to the market
- Hoteliers expect a summer like no other
- End of unemployment benefits boost could be dire
- As EU countries open borders, travel restricted within Germany
- US eyes tariffs against EU, UK amid recession
Virus worries catch up to the market: While increases in COVID-19 cases across the U.S. weren’t enough to dissuade market rallies earlier in the week, the bad news finally caught up with investors this morning. According to The Wall Street Journal, the Stoxx Europe 600 was down 1.5% while S&P 500 futures were down 0.5%.
“If this does get worse and more endemic, they will have to lock down some of these states again,” Charles Hepworth, an investment director at GAM Holding, told the newspaper.
Hoteliers expect a summer like no other: Leisure travel is clearly going to carry the day this summer season, but hoteliers are still hurting and doing what they can to survive, writes HNN’s Sean McCracken. Speaking during a recent online meeting, members of the Lodging Industry Investment Council said their properties are seeing some signs of life, but the bar for success has been significantly lowered.
“It’s (a good summer) if we’re generating positive cash flow,” David Duncan, president and CEO of First Hospitality, said. “I literally mean if there’s a plus sign in front of the number instead of a negative. Before it required a plus sign and six digits.”
End of unemployment benefits boost could be dire: Heidi Shierholz, an economist for the Economic Policy Institute believes the $600 increase to unemployment benefits for out-of-work Americans has been “one of the most effective parts of the CARES Act on both humanitarian and economic grounds” and its end could spell economic disaster, CNBC reports.
That benefit is slated to end on 31 July, which University of Massachusetts Amherst economics professor Arindrajit Dube described as a “terrible idea.”
“It would cause pain among millions of families, drive down economic activity and impede our recovery,” Dube writes.
As EU countries open borders, travel restricted within Germany: While travel corridors have opened up with the European Union, at least one German state has restricted some travel within that country’s borders, Reuters reports. Bavaria has ordered hotels and other accommodations to not accept guests from Guetersloh, following an outbreak of COVID-19 at a meatpacking plant there.
Similarly, Austria has issued a travel warning for the whole state of North Rhine-Westphalia
U.S. eyes tariffs against EU, U.K. amid recession: The Trump administration is considering a new round of tariffs on EU and U.K. goods, targeting as much as $3.1 billion in imports, Bloomberg reports. The new tariffs would include olives, beer, gin and trucks with new duties on aircrafts, cheese and yogurt that could be as high as 100%.
Compiled by Sean McCracken.