Elsewhere in the bellweather airline sector Swiss is cutting winter capacity by 9%, Austrian is laying off 1,000 staff while Czech is reducing its fleet by 10%.
Although we've stopped plumetting economies continue to drift downwards. If not a depression then it's certainly a more than standard recession - perhaps we should start calling it a repression. At the end of this global demand is likely to be severely repressed by perhaps as much as 7-10%. At some stage governments in the UK and the US are going to have to toy with inflation financing to get out of this mess - that's why in the long term I think the Euro will continue to appreciate. There is talk of 20% cuts in government spending in the UK but I'm not sure the electorate is ready for reductions of this projected scale. Anyway, the opposition would need to have a huge swing to unseat the incumbents huge arithmetic lead - Labour isn't dead yet. Currency and bond markets may well have got Sterling wrong.
Other unconnected pieces of recent data that surprised me:
- Phoenix house prices have fallen by 53.7% from their peak. By contrast Charlotte is down 11% and Dallas 8%.
- State level personal income tax collection is down 26% from prior year levels in the January - April timeframe.
- June autosales are set to rise above 10m units annualised in June - still down from last years 13.7m level.
- For the first 4 months of the year Central California bankruptcy levels are up 75% from 2008 levels.