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Wednesday, November 05, 2008

Financial Markets react to historic election of Obama

With the economy as a clear priority of the new administration, the world markets reacted to the election of Barack Obama, with investors voting with their wallets.

In Asia, the Nikkei, the major index for the Tokyo Stock Exchange, closed up 4.5%. South Korea's Kospi composite index finished with a 2.4% advance, according to Dow Jones. The Hang Seng index in Hong Kong ended up 3.7%. The Australian All Ordinaries index was up almost 3% at its close and the markets in Taiwan and the Philippines ended lower.

European stocks and U.S. futures fell after Democrat Barack Obama was projected to have been elected President of the United States. London's FT-100 and Paris' CAC-40 eeach fell more than 2%, while Germany's Dax was about 1.5% lower.

It remains to be seen how the markets will close today in Europe and how the US markets will react.

But it is the longer term results that will matter.

In the Obama camp, optimism is the order of the day, but it will still be over two months before he will be able to personally impact the economy through the implementation of his various programs. But the behind the scenes work will begin now. First with the formation of his cabinet and firming up various key appointments so that he can hit the ground running on January 20th.

One thing is for sure. The travel industry will benefit if our economy improves. And Obama did make a number of promises that we hope that he will keep:
  1. Revitalize transportation infrastructure by
  • strengthening the core infrastructure
  • adding new jobs through a new national transportation infrastructure
  • improving and modernizing air traffic control
  • strengthening airline safety and regulation
  • supporting Amtrak funding
  • supporting the development of high speed freight and passenger rail networks
  • strengthening air transportation in underserved areas
  • modernizing our water infrastructure
  • improving transportation access to jobs
2. Safeguard transportation from terrorism
  • Bolster airport security
  • Safeguard mass public transportation
We wait with bated breath, particularly interested to see the plans for strengthening air transportation in underserved areas at the very same time that airlines are reducing capacity and frequency and outright eliminating service to a number of cities in our great land.


Chicke Fitzgerald
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