Thomas Cook fallout: travel and insurance firms in the front line
Fiona Cincotta September 23, 2019 5:22 AM
The tour group went into compulsory liquidation over the weekend after last ditch rescue talks failed, cancelling all of its flight and hotel bookings. In a larger scale replay of the collapse of Monarch airlines a few years ago thousands of travellers were left stranded, leaving the UK Civil Aviation Authority to repatriate some 150,000 passengers. Insurance firms are already reeling from the bill that could potentially head their way with RSA Insurance, Prudential and high street banks all trading lower.
Travel group TUI spiked 8% assuming that it will pick up a large portion of Thomas Cook’s holiday traffic in the future.
Pound slides, but from a better position than last week
Boris Johnson is heading for New York where he will meet Angela Merkel, Emmanuel Macron and Donald Tusk on the sidelines of the UN General Assembly to try and move the currently deadlocked Brexit negotiations forward. It would be an overstatement to say that currency traders are cautiously optimistic about potential results given that the pound is down 0.4% this morning but still ,sterling is trading at a higher level against the dollar than throughout most of last week. The pound’s upward move against the euro is less convincing, up 0.07%, with the common currency losing ground following the ECB’s comments attributing the decline in the euro-zone’s industrial production to domestic factors.
Please note these products may not be available to trade in all regions.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.