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1. Rail Strikes Could Cost UK Hospitality Sector €800 Million
Aslef, the train drivers’ union in the United Kingdom, said it will “stage a series of one-day strikes and call an overtime ban across England’s operating companies at the start of December,” the Guardian reports. Train drivers are looking to secure their first pay raise since 2019.
The rail strikes could cost the U.K.’s hospitality sector €800 million ($871 million), UKHospitality CEO Kate Nicholls said in a statement.
“I would urge all parties to get back round the table to resume negotiations and work urgently to reach a solution that avoids these devastating strikes, including following the leader of the RMT who have reached an agreement to avoid strikes over Christmas,” Nicholls said.
2. Inflation Eases Globally
In October, consumer price growth fell below 5% in the U.K. and about 3% in the U.S. and eurozone, a sign of easing inflation that could lead to central banks cutting interest rates in 20234, the Wall Street Journal reports.
“It’s definitely a turning point for inflation,” said Stefan Gerlach, a former deputy governor of Ireland’s central bank. “Investors may be surprised at how rapidly central banks cut interest rates next year, maybe by one-and-a-half percentage point.”
3. Housing Migrants Drives Revenue for NYC Hotels
Hotel owners in New York City struggling to drive occupancy since the pandemic have turned to an option that brings in steady demand every night: hosting migrants and the unhoused, HNN’s Bryan Wroten reports.
The city pays hotels to host both migrants and the unhoused at rates that are less than normal, but it provides these properties with an opportunity to make revenue through full occupancy.
“Everything boils down to economics,” said Dan Lesser, president and CEO of New York-based LW Hospitality Advisors. “For many [hotel] owners, it makes sense to have a somewhat guaranteed stream of income. It’s every single night 100% occupancy.”
4. US Government Avoids Shutdown
Congress approved a bill Wednesday to temporarily fund federal agencies into early next year, the New York Times reports. The approval of the bill means the U.S. government will avoid a shutdown in the short term, but it leaves the door open for more problems in the not-so-distant future.
“This Friday night there will be no government shutdown,” said Sen. Chuck Schumer, Democrat of New York and the Senate majority leader. “Because of bipartisan cooperation, we are keeping the government open without any poison pills or harmful cuts to vital programs — a great outcome for the American people.”
Congress will need to reach a spending agreement by early 2024, the newspaper reports. Some agencies will run out of funds on Jan. 19 and the rest on Feb. 2.
5. Jobless Claims Rise More Than Expected
Initial claims for state unemployment benefits increased 13,000 to 231,000 over the past week ending on Nov. 11, Reuters reports. Economists polled by Reuters projected the figure to be lower, at 220,000.
"The increase in claims aligns with the recent slowdown in hiring. Job growth slowed in October and the unemployment rate climbed to 3.9%, the highest level since January 2022. With 1.5 job openings per every unemployed person in September, conditions remain fairly tight," the news outlet reports.