The American airline industry is facing a crisis even worse than the one after 9/11. Unless the Congress offers another stimulus package, 35 000 people may lose their jobs. That number would add to the current decline of 100 000 workplaces in air transportation. The airlines in the US received $25 billion in aid already and were forced not to lay off workers at least until October 2020. However, the pandemic crisis seems to be far from over as the aviation traffic remains at 700 000 passengers a day – a third of its regular rate.
Meanwhile, the price of the jet fuel went down so much that the manufacturers use its main component – straight-run kerosene – to make fuel oil for the ships. Traditionally one of the most expensive oil products, it is now in low demand as the air traffic most probably will not get back to pre-COVID19 levels until 2024. Similar fate share diesel and vacuum gas oil.
Incoming data from the third quarter suggest a strong economic revival in the eurozone, according to Christine Lagarde, the head of the European Central Bank. Although good news, the strength of the revival remains uncertain and may be uneven among the countries. It will also depend on how well they will cope with containing the pandemic. European Central Bank is stimulating markets with $1.6 trillion.
Cryptocurrencies are performing better on the markets than gold – one of the best investing assets of 2020. The Bloomberg Galaxy Crypto Index – that consists of digital coins – went up about 66%. That is almost two and a half times more than the 26,1% rise of gold. Both assets are considered a “refuge” during tough financial times. Nevertheless, experts warn that cryptocurrencies have a history of “wild swings”.