Vast cutbacks in jobs and spending before any summer rebound

The Associated Press
Posted 5/13/20

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Wednesday related to national and global response, the work place and the …

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Vast cutbacks in jobs and spending before any summer rebound

Posted

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Wednesday related to national and global response, the work place and the spread of the virus.

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TRAVEL & LEISURE: Boeing said this week that it's gone another month without a , cruise ships are and because few people are commuting to work or taking road trips. Global travel is close to a standstill.

— One of the biggest tourism companies in the world is cutting 8,000 jobs and will try to slash spending by about 30%. CEO Fritz Joussen did say Wednesday that a partial resumption of business could begin by June or early July in areas where testing is taking places or regions that have been cleared by governments.

The company employs between 60,000 and 70,000 people depending on the season.

— Six Flags is launching a new guest reservation system that will allow it to manage daily attendance levels and avoid overcrowding at theme parks. Advanced reservations through the company's website will be required to enter parks. People can get on a waiting list if the park is at capacity. Members of loyalty clubs and season ticket holders get priority.

— Scandinavian Airlines joined a growing list of carriers that will require passengers six and older to wear protective face masks. Non-essential items like magazines, pillows and blankets are no longer available, and meal service is postponed.

HOUSING: There are mixed messages on the housing front. Activity has with fewer people willing to show their homes, or to look at them. And 33 million people have lost jobs in the pandemic. Mortgage payments are being skipped.

— First-quarter mortgage delinquency rates jumped 59 basis points from the previous quarter, according to the Mortgage Bankers Association’s National Delinquency Survey.

Marina Walsh, MBA’s Vice President of Industry Analysis, said it's “reminiscent of the hurricane-related, 64-basis-point increase seen in the third quarter of 2017."

— For the fourth consecutive week, mortgage applications rose, suggesting that the spring buying season may not be a complete loss. And applications to buy a home jumped by a healthy 11% last week, according to the Mortgage Bankers Association.

Those applications are still down sharply from last year, but the gap between 2020 and 2019 appear to be shrinking. Purchase volume annually fell 19% annually. Last month, it was down 35%.

LONG OCEAN PASSAGE: Global commerce has in the pandemic, skewing trade numbers and emptying ports.

— The world’s biggest shipping company expects a quarter of its typical annual volume will be lost this year.

Denmark’s A.P. Moller-Maersk said Wednesday that its outlook for the year contains “high uncertainties,” The shipper had expected growth between 1% and 3% before the outbreak.

MARKETS: — Global stock markets Wednesday as investors worried about the risks of reopening economies from coronavirus shutdowns too soon.

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