Flight schedules in the UK are expected to return to normal today after more than 2,000 flights were cancelled due to an air traffic control system issue on Tuesday. According to aviation analytics company Cirium, no flights were cancelled today, marking a return to normal operations. The chief executive of National Air Traffic Services (Nats), Martin Rolfe, has been called to resign by the government, who have given him a week to report back on the reasons for the technical failure.
The problem was initially fixed on Tuesday but further flights were cancelled or delayed on Wednesday, with a total of 2,145 flights affected over two days. Cirium reported that 399 flights were cancelled on Wednesday alone. British Airways was the worst affected airline, with 88 of its 507 scheduled flights for Wednesday impacted. The airline apologized to its customers, stating the issue was entirely out of their control.
Michael O'Leary, the CEO of Ryanair, has criticized Rolfe's position as untenable and is expected to voice further criticism at Ryanair's annual meeting at its headquarters near Dublin airport later on Thursday.
Primark's parent company, Associated British Foods, plans to spin off the budget retailer next year and introduce home delivery services. Primark had been resisting a move into home delivery, arguing it did not make economic sense due to its low price points. However, AB Foods stated that Primark's digital maturity, including the success of its Click + Collect service, and online market developments, now present an opportunity for profitable growth through the home delivery channel. Primark has acquired a highly-automated warehouse in Sheffield, northern England. AB Foods reported that work on the demerger of Primark from its food businesses is advancing well and is expected to be completed in December 2027.
Crude oil prices have dipped but Brent crude remains above $100 a barrel after fighting in the Middle East escalated. It is currently trading at $100.42, down 79 cents or 0.8%. Shipping traffic through the Strait of Hormuz has dwindled to single digits, fuelling concerns over oil supply.
Asian stock markets are showing a sea of red, with Hong Kong's Hang Seng tumbling 1.4%, Japan's Nikkei flat, and China's CSI 300 index losing 0.4%. Yields on 10-year US Treasury bonds held steady at 4.8406% after rising to their highest levels in three years on Wednesday, when the Treasury Department announced a $6 billion buyback of longer-dated bonds that disappointed some investors.
The European Central Bank is widely expected to raise interest rates by a quarter point at lunchtime to bring inflation under control. The agenda includes the ECB interest rate decision at 1.15pm BST, US Producer prices for August at 1.30pm BST, the ECB press conference at 1.45pm BST, and US Home sales for August at 3pm BST.
