BEIJING/SYDNEY (Reuters) – Widely watched airfares in China are recovering to pre-pandemic levels as domestic tourists lead a patchy air travel recovery, scattering crumbs of hope to a shattered global travel sector. With international markets like Europe still in partial lockdown, the global tourism industry’s attention is riveted on China’s new travel patterns as it brings COVID-19 under control and lifts curbs on movement. The Chinese domestic market quietly overtook the once-dominant U.S. market in size during the pandemic, but multiple coronavirus outbreaks before last month’s Lunar New Year halted the rebound and could lead to first-quarter losses. Now, with temporary testing and quarantine restrictions once again lifted, average prices for an economy seat during the April 3-5 Qingming festival, or tomb-sweeping holiday, have rebounded to 96% of 2019 levels, according to data from Ctrip. Economy-class airfares for trips over the Labour Day holiday in early May have risen 11% compared with 2019 levels, says Ctrip, run by online travel giant Trip.com Group Ltd. “It seems like demand has really caught up with capacity once again and airlines are deciding discounts are no longer needed to stimulate demand,” said Luya You, transportation analyst at BOCOM International in Hong Kong. “I think the pent-up demand that everyone has been expecting is finally showing up in full force,” said You, adding she expects yields and revenues to reach normal by the second half. Over the last year, Chinese domestic capacity had risen faster than demand, depressing airfares as carriers sought to fill as many seats as possible. A return to fare growth is seen as a final step in the recovery. There are signs the United States, a close second in domestic capacity, is following a similar trajectory months behind China as vaccination rates rise, case numbers fall and airlines add more flights. Average round-trip U.S. domestic fares for May to August remain up to 20% lower than 2019 levels, but are up as much as 36% higher than 2020, online travel agent Hopper said.Europe, however, is bracing for a second lost summer in part because of a hobbled COVID-19 vaccine rollout and a heavy reliance on cross-border traffic. When travel restrictions are lifted, the European market should expect a “bloodbath” with low-cost airlines like Ryanair and Wizz Air competing to offer the lowest possible fares, CAPA Centre for Aviation Chairman Emeritus Peter Harbison said this month. In China, the Lunar New Year holiday is usually the busiest time for local airlines. But this year’s celebration was a wash-out for air travel, with capacity slashed and ticket prices plunging to five-year lows. Now, Chinese airlines are ramping up domestic capacity for the next few months, diverting aircraft from the largely closed international market. Chinese carriers are scheduled to operate 20.7% more domestic flights from April to October compared with 2019, according to flight master, a Chinese aviation data provider. China Eastern Airlines will overtake China Southern Airlines to operate the most domestic flights, while planned flights by Spring Airlines will surge by 62.25% from 2019 levels, the company said. Investors have noticed. Stock prices for the three biggest Chinese airlines have recouped pandemic-related losses. But all airlines are facing new headwinds from rising oil prices – exacerbated this week by a shipping blockage in the Suez Canal – and concerns over COVID-19 restrictions in international markets. Parash Jain, head of Asia Pacific transport research at HSBC, expects 2021 to be another loss-making year for the three biggest Chinese airlines and warns their shares already look like they have overshot. “What we’re seeing is the initial rebound in share prices has reflected the recovery in domestic market for now, with oil as a headwind, with foreign exchange no longer a tailwind and the rest of the world not favourable,” he said.
Vaccines appear effective vs New York virus variant; super-spreader events drive variants
US closes mostly higher after Biden’s presser
US stocks ended higher as President Joe Biden held his first presidential conference and as weekly jobless claims slumped to a one-year low. The Dow Jones Industrial Average rose 0.6% to 32,619.48, the S&P 500 was also up 0.5% to 3,909.52 and the Nasdaq Composite was 0.1% higher to 12,977.68. Financials and industrials led the gainers, with the communication services and technology sectors the only decliners on Thursday. The US 10-year yield rose 1.62%. At a news conference held at the White House, US President Joe Biden on Thursday pledged 200 million COVID-19 vaccinations within the first 100 days in office, after the administration achieved its initial goal of 100 million shots on Friday, which was the 59th day of Biden’s term, according to CNBC. Initial jobless claims was 684,000 for the week ended March 20, a drop of 97,000 from the previous week’s filings. Analysts polled by Econoday expected 730,000 claims. The previous week was revised up by 11,000 to 781,000. The four-week moving average was 736,000, down 13,000 from the prior week’s revised rate. The US 10-year yield rose by 2.6 basis points to $1.64%, after declining earlier in the session. Fed could begin tapering its asset purchase program by rolling back Treasuries and mortgage-backed securities it has bought when the economy starts to make “substantial further progress toward our goals,” Powell was cited as saying in media reports. The West Texas Intermediate futures slumped by 4.5% to $58.42 due to worries Europe was facing a new wave of the COVID-19 pandemic even as Germany backed off from harsher measures in April, outweighing the potential impact on supply of a container ship blocking the Suez Canal. “The weak point in Europe remains around the vaccine rollout amid the rise in new virus cases and the tightening of restrictions… which likely means the mooted acceleration in Q2 may have to be pushed back by a quarter,” National Australian Bank director of economics and markets Tapas Strickland was cited as saying in a report from Reuters. In company news, Darden Restaurants (DRI) reported fiscal third-quarter earnings and sales that slid year-on-year but still topped Wall Street estimates. Shares jumped by 8.2%, the most on S&P 500. Nike (NKE) is facing social media furor and boycott in China after the company said it was concerned about reports of forced labor in, and connected to, the Xinjiang Uyghur Autonomous Region in China. Shares fell by 3.4%, the steepest decliner on the Dow.
In the precious metals markets, gold was down 0.4% to $1,728.20 an ounce, with silver down 0.3% to $25.16 an ounce.
Among energy ETFs, the United States Oil Fund fell 3.8% to $39.89 and the United States Natural Gas Fund was up 2% to $9.64. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 0.2% to $32.24 and SPDR Gold Shares were down 0.4% to $161.78. The iShares Silver Trust was up 0.2% to $23.29.
United’s May flights to reach 52% of 2019 schedule
https://youtu.be/axdLu6L_-u4
(RTTNews) – As more travelers begin to plan long-awaited getaways with family and friends, United Airlines is kicking off summer vacation season with a robust May schedule that includes the addition of 26 new nonstop routes between Midwest cities such as Cleveland, Cincinnati and Milwaukee and popular vacation destinations such as Hilton Head, South Carolina; Pensacola, Florida; and Portland, Maine. The airline also plans to resume more than 20 domestic routes and will start new service between Orange County, California, and Honolulu.
Internationally, in May United will fly more than 100% of its pre-pandemic schedule to Latin America compared to what it operated in 2019, including more flights to Mexico, the Caribbean, Central America and South America.
The airline also plans to resume flights between Chicago and Tokyo Haneda, resume passenger flights between New York/Newark and Milan and Rome, and restart service between Chicago and Amsterdam. In total, United plans to operate 52% of its overall schedule compared to May 2019, whereas in May 2020 United operated 14% of its overall schedule compared to May 2019.
US in green premarket with COVID in focus
Major stock markets on Wall Street registered gains ahead of Thursday’s session as the coronavirus pandemic continued to loom over the United States economy. The latest news revealed AstraZeneca posted updated results of its vaccine’s interim analysis, saying that the jab is 76% effective in preventing the COVID-19. Meanwhile, billionaire philanthropist Bill Gates estimated the crisis should be over by the end of next year. The Dow Jones surged 0.34% or 110 points at 4:20 am ET, while the Nasdaq 100 rose 0.55%. At the same time, the S&P 500 climbed 0.38%. The euro stood 0.06% lower against the dollar to sell for 1.18063.
Bostic doesn’t see Fed raising rates before 2023
(Bloomberg) — A strong recovery from the Covid-19 recession is likely to prompt Federal Reserve Chair Jerome Powell and his colleagues to lift interest rates in 2023, but that isn’t going to show up in their forecasts this week, a survey showed. Economists surveyed by Bloomberg News see two quarter-point hikes in 2023. But they also expect the U.S. central bank’s own forecast, released at the same time as its policy statement at 2 p.m. in Washington on Wednesday, will show the median Fed official projecting rates staying on hold near zero throughout that year. Such a result would match the Fed’s December projections, even though U.S. lawmakers have backed almost $3 trillion in fiscal stimulus since then, including $1.9 trillion that President Joe Biden signed into law on Thursday, which — together with accelerating vaccinations — is boosting the economic outlook. “The Fed is now probing the unknown as a powerful trio of massive fiscal stimulus, monetary support and pent-up demand impact an economy released by the widespread dissemination of vaccines,” economist Lynn Reaser of Point Loma Nazarene University said in a survey response The Federal Open Market Committee is almost certain to keep rates near zero and pledge to continue its asset purchases at the current $120 billion monthly pace at its second meeting of the year. Powell has repeatedly stressed that the U.S. labor market remains far from the Fed’s goal of full employment, making it too soon to discuss winding down Fed support as the world marks the one-year anniversary of the pandemic. Even so, three-quarters of the economists forecast the central bank will have to raise rates by the end of 2023, where the median respondent has estimated about 50 basis points of tightening. By contrast, the median in Bloomberg’s December survey had no change in rates until 2024 or later. “While the economic projections will change, we do not expect rate expectations to move much at all. In fact, while a few dots may drift higher on the dot plot, we expect the center of the Committee to hold the line in terms of not acknowledging any change in the exit timeline.” The committee, making its first quarterly economic forecasts of the year, will raise its estimates of 2021 growth and edge up the inflation call, while not bringing forward a winding down of asset purchases or interest-rate hikes, in the view of the 41 economists, who were surveyed March 5-10. The Fed’s closely watched forecasts are likely to show gross domestic product increasing 5.8% in 2021, the survey found, up from 4.2% in the Fed’s December projections. Inflation is seen slightly higher than three months ago, with the unemployment rate falling to 5.0% at year’s end, the same as in the December projections. The FOMC is likely to continue to forecast near-zero rates through 2023, though it’s a close call, with a third of economists surveyed looking for a median Fed projection of higher rates by then. In December, one official penciled in a quarter-point increase during 2022, with five seeing hikes in 2023. “Having a forecast of rising rates seems very unlikely when we are just beginning to discuss how much inflation will move up, for how long, how much the unemployment rate will drop,” said Nathaniel Karp, BBVA chief U.S. economist. “The Fed has to see it, feel it, not just dream about it.” A sharp rise in U.S. Treasury yields in the past month as economic-growth forecasts picked up has caught the eye of the central bank. Powell and others have attributed the increases to improving prospects and said they don’t appear to be troubling. The FOMC is unlikely to highlight the risk of tightening financial conditions in its statement or strengthen its forward guidance on interest rates or bond buying, the survey found. The committee has pledged to continue the current pace of asset purchases until there’s “substantial further progress” on employment and its 2% inflation goal. “The FOMC will remain in wait-and-see mode for the time being, with no major change in the statement, rate-hike timing, or inflation projections expected at this meeting,” said Scott Anderson, Bank of the West chief economist, in a survey response. Powell has said the economy isn’t close to achieving the necessary progress to trigger a shift in bond buying and that he will signal any tapering well in advance. That isn’t seen happening until 2022 in the view of a narrow majority of economists. Most of the surveyed economists also don’t expect any near-term change, such as a shift to buying long-term Treasuries. Even less likely would be altering the mix of Treasury and mortgage-backed securities, or placing a numerical target on Treasury yields, known as yield-curve control, they said. Powell’s current term as chair is scheduled to end next February. His highly accommodative policies could win him a second stint, according to the economists. About three-quarters expect him to continue in the job, which is about the same finding in the prior survey. The central bank has occasionally made a technical change to its interest rate on excess reserves, which would not affect monetary policy. Most economists are not looking for a change in March, however.
Pfizer CEO reveals plans to become leader in mRNA
(Reuters) -Pfizer Inc plans to tap the mRNA technology to make new vaccines for other viruses following the success of its COVID-19 shot, which was developed jointly with German partner BioNTech SE, the Wall Street Journal reported on Tuesday. The drugmaker said it was ready to pursue mRNA on its own following its experience in the past year working on the COVID-19 vaccine, the WSJ reported, citing an interview with Pfizer Chief Executive Officer Albert Bourla. It did not, however, disclose any details about the viruses it was targeting.
The success of the technology is prompting drug developers to consider its use in other areas of medicine beyond vaccines, attracting billions of dollars in investment.
Pfizer and BioNTech did not immediately respond to Reuters requests for comment. Pfizer/BioNTech and Moderna’s COVID-19 vaccines, authorized for emergency use in the United States, use mRNA technology.
BioNTech founders Özlem Türeci und Uğur Şahin honored with Axel Springer Award
“It was very clear that there could be no better choice for the Axel Springer Award 2021 than the two founders of BioNTech,” said Mathias Döpfner, CEO of Axel Springer SE, at the start of the awards ceremony in the new Axel Springer building. Within just eleven months, Özlem Türeci and Uğur Şahin developed the world’s first vaccine against COVID-19 – giving millions of people back the hope of a free life. On Thursday evening, they were honored with the Axel Springer Award for their groundbreaking research, innovative strength and social responsibility. In her acceptance speech, Özlem Türeci said: “This award is a true honor for us, and it is a recognition of our work. However, it is also a recognition for all those who followed this call to action and made the impossible possible – to develop a COVID-19 vaccine in less than a year. (…) However, this award is not only about people. It also illustrates that science and the scientific community can truly make a difference. It also illustrates that joining forces is a tool, in particular if executed on every possible level with a sense of joint commitment and with a sense of urgency.”
In an interview with Mathias Döpfner on stage, the two award winners, who see themselves as “innovators and problem solvers”, spoke about what drives them – and how they read about the cases in Wuhan at their breakfast table in January 2020 and decided to help. When asked how they stay so grounded despite of all their success, Uğur Şahin replied: “We focus on our work. We really love science. We really love working with scientists and trying to find out the truth and coming up with solutions.” In his laudatory speech the Austrian chancellor Sebastian Kurz described what makes BioNTech so special: “A committed team with world-leading know-how, and two founders who have put their whole heart in this effort and stayed humble in spite of all the success. In a world full of noise and speculation such an attitude is refreshing. And combined with the world-changing results it is extremely impressive.” Surprise guest Hans Hengartner, Professor at the Medical Faculty of the University of Zurich and in the Department of Biology at ETH Zurich, who has been a long-time companion of the two laureates, said: “Having an impact on patient’s lives and public health is at the end the greatest gain and holy grail of science. Your dedication and your curiosity combined with the highest ethical standards, your modesty and gratitude make you outstanding scientific leaders.” There were congratulatory messages to the award winners from many parts of the world:
BioNTech founders predict end to lockdowns by fall
Ugur Sahin, whose firm developed one of the world’s first coronavirus vaccines, believes Europe and US will have the pandemic under control by the end of this summer. It comes amid criticism of the EU’s vaccination drive. Europe will be out of lockdown with the coronavirus pandemic under control by this autumn, the founder of Germany’s BioNTech said on Sunday. Ugur Sahin, whose company developed one of the first vaccines in the fight against COVID-19, told the Welt Am Sonntag newspaper that he believed the latest shutdowns would be the last. “In many European countries and the US, we will probably not need lockdowns by summer’s end,” he said. “There’ll be outbreaks, but they’ll be background noise. There’ll be mutations, but they won’t frighten us.” Sahin, who founded his firm with his wife Özlem Türeci, made his comments at a time when EU leaders are under fire for the bloc’s relatively slow vaccination drive, compared to countries such as the US, the UK and Israel. But he added the problems would prove temporary, insisting 70% of Germans should be vaccinated by the end of September. The husband-and-wife team have been awarded Germany’s Knight Commander’s Cross for their contribution to fighting the virus. Almost 9% of the German population had received at least one vaccine shot as of Saturday. Meanwhile, Britain passed the half-way point with 50% of adults having received at least one dose. German Chancellor Angela Merkel is trying to find ways to speed up the country’s inoculation drive, refusing to rule out buying up Russia’s Sputnik V jab outside of the EU’s joint purchasing scheme. Merkel will hold talks with regional leaders on Monday to decide on whether to scrap plans to gradually reopen the economy as infection rates continue to rise. German authorities say the incidence level is above 100 cases per 100,000 population over a week. That is the threshold above which they say they must impose stricter distancing rules to stop the healthcare system from being overburdened. Bavaria’s conservative premier, Markus Soeder, a likely candidate to succeed Merkel as chancellor after the national election, told the Frankfurter Allgemeine newspaper that shutdown measures might need to stay in place for now. “A false move now risks turning this third wave (of the virus) into a permanent wave,” he said. “We have a tool: the emergency brake. It must be applied strictly.”
Miami Beach under state of emergency as Florida reaches 2M COVID cases
March 20 (UPI) — The city of Miami Beach declared a state of emergency Saturday over concern about spring break crowds spreading COVID-19 Saturday and the Idaho legislature moved to a recess due to an outbreak among lawmakers. Miami Beach Mayor Dan Gelber announced an 8 p.m. curfew for the South Beach entertainment district during a Saturday-afternoon news conference and said shore-bound traffic on the city’s causeways would be shuttered. Both measures will be in effect for at least 72 hours, but officials may extend the state of emergency. “As we hit the peak of the peak of spring break, we are quite simply overwhelmed,” City Manager Raul Aguila said, who also said that on Friday night “you couldn’t see pavement and you couldn’t see grass” due to crowding in the area.