Thomas Cook's Insurer, Zurich, has already registered claims worth $277 million (Credit: Reuters/Kai Pfaffenbach)
Germany to repay insolvent Thomas Cook customers
Germany could repay customers of Thomas Cook, as the bankrupt tour company's insurance policy is proving insufficient, according to German broadcaster ADR.
Experts estimate that claims could reach $332 million to $554 million but Insurer Zurich's liability is capped at $121 million.
A legal report commissioned by Zurich stated that Germany could be liable as the government failed to implement a 2015 EU directive correctly in order to ensure all customers would get their money back in case of a tour operator's bankruptcy.
Zara reported net profits of $2.9 billion in the first 9 months of 2019 (Credit: Reuters/Rodrigo Garrido)
Zara's Inditex reports record profits
Zara's owner Inditex has reported a 12 percent growth in profits from this time last year, boosting the company's net cash to a record of 8.5 billion dollars.
The company said this follows its great use of technology – in particular for the management of inventory and high profile of store locations.
Saga announces Euan Sutherland as new CEO
Over 50s tourism and insurance company Saga Plc announced on Wednesday Euan Sutherland, former Superdry top boss, as their CEO.
He joins Saga at a critical time as the insurance company has had to cut prices suddenly to remain competitive while the travel unit faces uncertainties over Brexit.
Saga chairman Patrick O'Sullivan said that Mr Sutherland "has substantial experience across several consumer-facing businesses that will be invaluable as we continue the Saga transformation".
Sutherland will have to appeal to a new audience after moving from Superdry to Saga.
It's a wait-and-see day for investors as they look ahead to the Federal Open Market Committee (FOMC) interest rate decision, angle for a bite about trade talks and take bold positions ahead of the UK General Election.
A new YouGov MRP poll released late on Tuesday predicted a slimmer-than-expected lead for the Tories which put the pound under pressure in early trade as analysts are not ruling out the possibility of a hung parliament. Up until now, the polls have been pointing to a victory for Boris Johnson's Conservative party which could bring an end to uncertainty around the Brexit end-game, but now that seems less predictable. On the other hand, we know how spectacularly wrong both the polls and the markets have got it before.
The Fed Reserve decision on interest rates is due this evening and although it is widely expected they will hold rates steady, the detail of the bank's statement and tone of the press conference could make the markets jumpy.
"There is zero chance of a change in rates, with the markets watching the updated plot and accompanying statement carefully." said Jeffrey Halley at OANDA.
In Europe, the European Central Bank (ECB) will announce its policy decision on Thursday, with no changes expected, but again it could be the press conference - Christine Lagarde's first at the helm - which could steer the market, perhaps highlighting the limits of monetary policy and nudging European leader into action their end on the fiscal stimulus side.
Those elusive US/China trade talks are other ones the markets are holding their breath for, although there does not seem to be a hint of urgency on either side at this point. This Sunday is the date that next round of US tariffs on China are due to kick in on smartphones, laptops and toys.