coldair
27th Apr 2009, 10:51
From the BBC;
BBC NEWS | Business | Airline shares hit by flu fears (http://news.bbc.co.uk/1/hi/business/8019912.stm)
http://newsvote.bbc.co.uk/nol/shared/img/printer_friendly/news_logo.gif
Airline shares hit by flu fears
Shares in airlines and travel firms have fallen sharply around the world on concerns about the economic impact of the swine flu outbreak.
With the outbreak in Mexico spreading to the US and Canada, shares in cruise ship operator Carnival were down 7.7%, while British Airways had fallen 7.4%.
Earlier, shares in airlines Qantas and Cathay Pacific had fallen.
Investors fear the flu outbreak may lead to people cancelling overseas trips, or even travel restrictions.
'Real concern'
Analysts said investors were more cautious than panicked, but still concerned that if the outbreak worsened, especially in the US, it could potentially derail economic recovery efforts.
"In essence, this is an already dangerous time for financial markets so to have this spectre developing right now is just cause for some very real concern," said analyst James Hughes of CMC Markets.
Shares in other UK-listed travel firms were also lower, with hotel business Intercontinental down 5.3%, and tour operators Thomas Cook and TUI both losing 4.3%.
ABTA, the UK's main travel association, said there were "no suggestions" there had been any outbreaks of the flu in Mexico's main tourist regions.
"The Foreign Office has not imposed any travel restrictions, and as a result normal booking conditions apply," it said.
Shares in some firms have risen following the flu news. Shares in the Swiss drug firm Roche - the manufacturer of the flu drug Tamiflu, which has already been shown to work against the outbreak in Mexico - were up 4%.
"We are in the process of reinstating our activities and checking all the processes to see how we can scale up [production]," said a Roche spokeswoman.
'Health emergency'
The UK's main FTSE 100 index was down 0.7%, or 30 points, at 4,126 in morning trading, while Germany's Dax had lost 1.6%.
Hong Kong's Hang Seng share index had earlier ended down 2.7%, with shares in Cathay Pacific losing 8%.
In Australia, shares in Qantas ended down 3.5%.
US soy and corn prices have also fallen on fears that the flu outbreak will cause a slump in demand for pork products, which would hit demand for animal feed.
Meanwhile, Russia has already introduced bans on meat imports from North and Latin America.
However, despite the name "swine flu", the new strain is not infecting pigs. The World Health Organization has declared the flu a "public health emergency of international concern", warning that it could spark a pandemic, or global outbreak.
Story from BBC NEWS:
BBC NEWS | Business | Airline shares hit by flu fears (http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8019912.stm)
Published: 2009/04/27 10:15:15 GMT
© BBC MMIX
............................................................ ..........
The UN has warned the virus has the potential to become a pandemic.
I wonder what impact this will have on the aviation industry if people decide not to travel due to the media reports.
BBC NEWS | Business | Airline shares hit by flu fears (http://news.bbc.co.uk/1/hi/business/8019912.stm)
http://newsvote.bbc.co.uk/nol/shared/img/printer_friendly/news_logo.gif
Airline shares hit by flu fears
Shares in airlines and travel firms have fallen sharply around the world on concerns about the economic impact of the swine flu outbreak.
With the outbreak in Mexico spreading to the US and Canada, shares in cruise ship operator Carnival were down 7.7%, while British Airways had fallen 7.4%.
Earlier, shares in airlines Qantas and Cathay Pacific had fallen.
Investors fear the flu outbreak may lead to people cancelling overseas trips, or even travel restrictions.
'Real concern'
Analysts said investors were more cautious than panicked, but still concerned that if the outbreak worsened, especially in the US, it could potentially derail economic recovery efforts.
"In essence, this is an already dangerous time for financial markets so to have this spectre developing right now is just cause for some very real concern," said analyst James Hughes of CMC Markets.
Shares in other UK-listed travel firms were also lower, with hotel business Intercontinental down 5.3%, and tour operators Thomas Cook and TUI both losing 4.3%.
ABTA, the UK's main travel association, said there were "no suggestions" there had been any outbreaks of the flu in Mexico's main tourist regions.
"The Foreign Office has not imposed any travel restrictions, and as a result normal booking conditions apply," it said.
Shares in some firms have risen following the flu news. Shares in the Swiss drug firm Roche - the manufacturer of the flu drug Tamiflu, which has already been shown to work against the outbreak in Mexico - were up 4%.
"We are in the process of reinstating our activities and checking all the processes to see how we can scale up [production]," said a Roche spokeswoman.
'Health emergency'
The UK's main FTSE 100 index was down 0.7%, or 30 points, at 4,126 in morning trading, while Germany's Dax had lost 1.6%.
Hong Kong's Hang Seng share index had earlier ended down 2.7%, with shares in Cathay Pacific losing 8%.
In Australia, shares in Qantas ended down 3.5%.
US soy and corn prices have also fallen on fears that the flu outbreak will cause a slump in demand for pork products, which would hit demand for animal feed.
Meanwhile, Russia has already introduced bans on meat imports from North and Latin America.
However, despite the name "swine flu", the new strain is not infecting pigs. The World Health Organization has declared the flu a "public health emergency of international concern", warning that it could spark a pandemic, or global outbreak.
Story from BBC NEWS:
BBC NEWS | Business | Airline shares hit by flu fears (http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8019912.stm)
Published: 2009/04/27 10:15:15 GMT
© BBC MMIX
............................................................ ..........
The UN has warned the virus has the potential to become a pandemic.
I wonder what impact this will have on the aviation industry if people decide not to travel due to the media reports.