Good morning and welcome to our continued coverage of the world economy, financial markets, the eurozone and business.
The UK competition authority has launched an action against British Airways and Ryanair for their refusal to grant refunds to people during UK closures, when they were “legally unable to fly” due to travel bans and restrictions imposed. by the government.
BA offered coupons or reservation changes and Ryanair only the option to change reservations. The Competition and Markets Authority launched an investigation in December.
Said this morning that he is “concerned that, by not offering people their money, both firms may have violated consumer law and unfairly left people out of pocket. He is now trying to resolve these concerns with businesses, which may include seeking refunds or other compensation for affected customers. “
This relates to “periods when it was illegal in one or more parts of the UK for people to travel for non-essential reasons. It covers flights that were not canceled and does not cover other situations ”.
Andrea Coscelli, Executive Director of the CMA, said:
While we understand that airlines have been through tough times during the pandemic, people should not unfairly run out of pocket money for complying with the law.
Customers booked these flights in good faith and were legally unable to take them due to circumstances completely beyond their control. We believe that these people should have had their money returned.
In China, inflation has risen, stoking fears of rising inflationary pressure in the world economy. The general consumer price index rose at an annual rate of 1.3% in May from 0.9% in April.
ING economist Iris Pang explains:
Consumer prices continued to be affected by last year’s high pork prices, which began to decline in May last year. As such, the high base effect from now on will dissipate and thus we will see the CPI rise from now on.
Most striking was a 9% annual increase in factory prices, compared to 6.8% in April and the highest since 2008, driven by ferrous metals. They have jumped since the end of last year when they fell 0.4%.
Michael Hewson, Chief Market Analyst at CMC Markets UK, says:
While part of the increase can be attributed to base effects due to the huge drop in commodity prices that we saw in March and April last year, where producer prices were down 3.7%, there is growing evidence that various supply-side problems are beginning to create a situation in which, instead of being transitory, inflationary pressures could become more persistent. It is certainly something of growing concern for Chinese companies, along with the Chinese authorities given recent steps to curb the recent sharp rise in commodity prices.
This is a situation where central bankers appear to be remarkably relaxed or pleased, depending on which side of the fence you are on.
Germany’s trade figures show a 0.3% increase in exports in April, while imports fell 1.7%. Germany exported goods worth € 111.8 billion and imported goods worth € 96.3 billion. the Federal Statistical Office (Destatis) reports.
Compared to April 2020, exports increased by 47.7% and imports by 33.2%. This means that Germany’s trade surplus improved to € 15.5 billion compared to € 3.4 billion the previous year.
Germany’s exports to the UK increased 64% to € 5.3 billion in April, after the falls of the previous month, while imports fell 0.6% to 3,100 million euros.
Asian stock markets are down, with Japan’s Nikkei losing 0.3% and Hong Kong’s Hang Seng falling 0.2%. European stocks are expected to open slightly higher, while the UK’s FTSE 100 could fall at the open.
- 2.30pm BST: Pre-opening hearings of the UK Treasury Committee for appointments to the Bank of England’s Prudential Regulation Committee and Financial Policy Committee: Tanya Castell (PRC) and Carolyn Wilkins (FPC)
George is Digismak’s reported cum editor with 13 years of experience in Journalism