Deutsche Lufthansa AG is cutting 2,000 more flights from its summer schedule as European airlines grapple with staff shortages as demand soars.

The European aviation sector is struggling to increase capacity fast enough to meet the growing demand for travel during the summer. With travel restrictions removed and Covid-19 vaccination rates increasing, it was the first summer that many travelers felt comfortable enough to take trips abroad since the start of the pandemic.

   
 
 

Britain’s PM race rocked by Dark Horse candidate Penny Mordaunt

LONDON-The unpredictable contest to find a new British Prime Minister has produced a dark horse.

Penny Mordaunt, little known outside Conservative Party circles, emerges as the biggest threat to former Chancellor of the Exchequer Rishi Sunak’s campaign to take over as party leader. Considered a long shot just days ago, she became favorite in Britain’s betting houses on Wednesday after several polls showed her leading popularity polls among grassroots Conservative members.

   
 
 
   
 
 

WORLD NEWS

Fed Mester: CPI data terrible, but not ready to call for 100bps rate hike

Cleveland Federal Reserve Chair Loretta Mester said inflation data released earlier Wednesday was dire, but she was not yet ready to commit to further accelerating interest rate hikes. interest of the central bank to deal with the problem.

The June consumer price index “was uniformly bad, there was no good news in this report,” Ms. Mester said in a Bloomberg radio interview. “Until we get and see compelling evidence that inflation has turned the corner, is on a downward path, and is sustainably on a downward path, we still have work to do.”

   
 
 

Asian central banks unveil surprise tightening to fight inflation

A pair of Asian central banks took surprise steps to tighten policy to rein in rapidly rising inflation, while another monetary authority stepped in to bolster its currency as China’s interest rate hikes US Federal Reserve strengthen the attractiveness of the US dollar.

On Thursday, in almost back-to-back moves, the Monetary Authority of Singapore tightened policy while the Central Bank of the Philippines raised policy rates by 75 basis points, both citing the need to rein in rapidly rising inflation .

   
 
 

Barkin says the fight against inflation must occupy the full attention of the Fed

A Federal Reserve official said on Wednesday the central bank needed to make sure it cut inflation even if it raised the prospect of a recession in the year ahead.

“I recognize that there is a risk of recession in the short term, but I think the medium term is better if inflation is under control,” Richmond Fed Chairman Tom Barkin said in an interview on Wednesday. . “Our goal should be to control inflation. If we control inflation, we are setting up to have a much stronger economy.”

   
 
 

Inflation may have peaked, but the Fed won’t back down

Inflation ran hot last month. He might be about to look cooler, but maybe not cool enough.

The Labor Department said Wednesday that consumer prices rose 1.3% in June from a month earlier, up 9.1% from a year earlier. This marked the highest pace of inflation since November 1981. Much of the gain was driven by rising gasoline prices: core prices, which exclude food and energy products in a bid to better follow the trend of inflation, rose 5.9% year on year. earlier. That was down slightly from May’s 6% and March’s multi-decade high of 6.5%, but it’s still too hot for anyone’s comfort.

   
 
 

US economy is slowing in several parts of the country, according to the Fed’s beige book

Several parts of the country have shown signs of slowing in recent weeks and price increases have remained strong as the U.S. economy continues to expand modestly, the Federal Reserve said in a report.

Across the country, food and energy prices have risen, according to the Beige Book, which is a compilation of economic anecdotes collected up to July 13. The latest release on Wednesday comes as inflation hit 9.1% in June, a four-decade high.

   
 
 

Soaring inflation challenges Democrats’ economic plans

WASHINGTON-Worries about inflation and the economy cast new doubts on Democrats’ ability to pass a slimmed-down version of President Biden’s economic package, piling on the hurdles facing the plan focused on drug prices, climate-related proposals and tax increases.

New government figures showed a 9.1% rise in the consumer price index, driven by soaring costs for petrol, food and other items.

   
 
 

Pakistan strikes deal with IMF for $4 billion lifeline

ISLAMABAD, Pakistan — The International Monetary Fund has agreed to bail out Pakistan, providing a financial lifeline as emerging markets come under pressure from a global price shock stemming from the war in Ukraine.

The IMF said in a statement on Wednesday that it would provide Pakistan with $4 billion over the next year, starting with an initial amount of $1.2 billion, once its board of directors has officially endorsed the deal reached with Pakistani officials during weeks of negotiations. Foreign exchange reserves held by Pakistan’s central bank have been depleted in recent weeks to cover less than two months of exports, largely shutting down Pakistan’s prospects of tapping international financial markets.

   
 
 

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(END) Dow Jones Newswire

July 14, 2022 05:50 ET (09:50 GMT)

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