Cancelled flights could become the new normal in Europe as airlines strive to protect margins amid surging jet fuel prices. With wages accounting for 25% of revenue (vs. the global average of 19%), European airlines have little incentive to address staff shortages in the short term.
The ECB is facing a “risk trilemma” as its hawkish monetary policy pivot raises the specter of fragmentation risk, which threatens to impede the efficient transmission of monetary policy.
The share of people who are overweight and obese has been increasing markedly, even in poorer countries, a trend that was likely amplified by the lockdowns imposed during the Covid-19 pandemic.
As central banks around the world tighten monetary policy to cope with surging inflation, financing costs are set to rise for companies, contributing to the return of business insolvencies. In this context, recovering debt could become even more of a challenge.
Prepare for a contraction in global trade in Q2 2022…With the omicron crisis in China prolonging supply-chain bottlenecks and bringing port congestions back to the worst levels seen in 2021, global trade of goods in volume terms should decline by -1.3% q/q.
