Briefs for Tuesday

Worldwide spending on business travel will top pre-pandemic levels next year and expand to more than $1.78 trillion in 2027, according to the Global Business Travel Association’s annual outlook.

Spending has accelerated faster than the group had forecast last year on more stable global economic conditions and as recessions failed to materialize, according to the report released Monday during the GBTA’s annual conference in Dallas.

It will hit $1.52 trillion in 2024, topping 2019’s record $1.43 trillion. The group previously expected that the mark wouldn’t be surpassed until 2026.

“The head winds that were anticipated to impact the rebound of global business travel over the past year didn’t materialize and that is good news,” said Suzanne Neufang, GBTA’s chief executive officer.

The trends show “an accelerated return to pre-pandemic spending levels.”

How and when business passenger volumes will recover to 2019 levels remains to be seen, according to the report, which assesses data from 72 countries and 44 industries.

Tesla reduces prices in China

Tesla cut prices again in China, sending auto stocks tumbling on concerns the move will rekindle an international price war that had shown signs of abating.

The automaker marked down the Long Range and Performance versions of the Model Y sport utility vehicle by 14,000 yuan ($1,900) to 299,900 yuan and 349,900 yuan, according to a post on its Weibo account.

Tesla also extended an 8,000-yuan insurance subsidy for the base version of the Model 3 sedan, keeping the perk in place through the end of next month.

The reductions – amounting to about 4.5% and 3.8% for the two Model Y versions, respectively – may presage “similar select cuts” in the U.S. and Europe soon, Chris McNally, an analyst with Evercore ISI, said in a note.

That would pressure the company’s third-quarter profit margin, he added.

From wire reports