Sterling recovered some lost ground yesterday, pulling back just under 0.5% against both USD and EUR. This followed comments once again from the governor of the Bank of England, Andrew Bailey, that interest rates would rise if clear evidence emerges that inflation is fuelling wage increases.
The USA lifted its travel ban for fully vaccinated travellers and the first BA and Virgin Atlantic tourist flights left Heathrow simultaneously after more than 600 days. The packed planes were the smaller and more fuel-efficient A350s, after the 747 jumbo jets were pensioned off early in the pandemic.
For those flying over for Christmas shopping, the US business press reports retailers “scrambling” for staff as the holiday buying season starts. Department store Macy’s is offering a higher minimum wage, education programmes and additional bonuses.
In Germany, Covid-19 infection levels hit their highest since the start of the pandemic.
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