From the desks of the Hotel News Now editorial staff:
- UK more likely to have snap general election
- US manufacturing sees first contraction in three years
- Likelihood of recession low in 2019, rising in 2020
- Apple Leisure appoints Reynal as CEO
- Hurricane Dorian likely to see US landfall today
U.K. more likely to have snap general election: Turmoil continues in the United Kingdom following the government’s failure to stop Parliament from taking control of the agenda on Brexit, which now allows members of Parliament to outlaw a no-deal Brexit, the BBC reports. Reacting to the vote, Prime Minister Boris Johnson said he felt he had no choice but to hold a general election, although no definite date has been announced.
The government lost the vote by 328 votes to 301, which included 21 Conservative Party rebels, who have been told they no longer will be able to defend their constituency seats for the party at the next election. One of those MPs is the grandson of World War II-era PM Winston Churchill.
The vote now allows opposition MPs and rebels to delay Brexit until January 2020 unless an accepted Brexit deal is agreed to before 19 October or the government agrees to a no-deal exit.
U.S. manufacturing sees first contraction in three years: The Manufacturing Business Survey from the Institute for Supply Management, a key indicator of economic health, found that in August manufacturing “unexpectedly” dropped to 49.1, with any performance below 50 indicative of a contraction, NBC News reports.
Economists told the news outlet that continued arguments over tariffs and trade between the U.S. and China are mostly to blame. Though the labor market in the U.S. remains healthy, a recent revision from the Bureau of Labor Statistics indicated job creation also is under pressure, NBC reports.
Likelihood of recession low in 2019, rising in 2020: Although economists are wrong more often than not, the consensus is that the risk of a recession in the U.S. will rise sharply in 2020, reports Hotel News Now’s Robert McCune. But “the truth is you don’t really know you’re in a recession until you’re fully in it,” said William Simone, senior director of topline revenue and competitive analysis at Marriott International.
Speaking at a Hotel Data Conference panel titled “Peak to Peak: 2007 vs. 2019?” Simone said the economic conditions now are very different than in 2008 before the last recession. For example, Simone said, “personal consumption expenditures, which make up 70% to 80% of (gross domestic product), were slowing in 2007-08, according to Federal Reserve Economic data, but we’re not seeing that today.”
Apple Leisure appoints Reynal as CEO: Alejandro Reynal has been named CEO of hospitality management company Apple Leisure Group, according to a news release. Apple comprises vacation brands such as Travel Impressions and Apple Vacations but also 66-asset resort brand AMResorts.
Reynal succeeds Alex Zozaya, who has become the company’s full-time executive chairman. Previously Reynal was CEO of Atento, a provider of customer relationship management systems that he helped take public in 2014.
Hurricane Dorian likely to see U.S. landfall today: Hurricane Dorian has left the Bahamas, where it is being blamed for at least five deaths, and is approximately 90 miles off the coast of Florida, according to the National Hurricane Center, which is predicting the system will skirt the coasts of Florida and Georgia before threatening the Carolinas. Winds currently are 105 miles per hour, down from the approximately 185 miles per hour gusts that hit the Bahamas.
In the U.S., authorities say that approximately 7,100 people in Florida have lost electricity, while important hub airport Charleston International in South Carolina announced it will close down at 3 p.m., with operations, weather permitting, expected to resume on Friday morning, CNN reports.
Compiled by Terence Baker.