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(Changes headline to show OpenBrand rather than Openbrand) WASHINGTON (Reuters) -Prices for long-lasting U.S. consumer and personal goods increased in September, data from OpenBrand showed on Thursday, though the boost from import tariffs appeared to be fading. A partial U.S. government shutdown, now in its second week, has caused the suspension of official economic data collection and publication, including September's Consumer Price Index report that was due to be released next Wednesday.  That has left investors scanning private data for clues on the state of the labor market and inflation. Data analytics firm OpenBrand said its Consumer Price Index for durable and personal goods increased 0.58% month-on-month after rising 0.45% in August. The price measure leverages OpenBrand's library of durable and personal goods pricing, promotion and availability covering more than 400,000 products.  Last month's rise was driven by surges in the prices for communication, personal care and recreational products, attributed to the end of the "de minimis" exemption in August, which allowed items valued under $800 to be imported duty-free. "The elimination of this exemption would specifically impact products that are physically smaller and could be packaged in bundles, such as phones, computers, gaming consoles and personal care items," said Ralph McLaughlin, OpenBrand chief economist. "It turns out, these are the product groups we are seeing the most price acceleration in." But prices for appliances were unchanged after rising solidly in August. Home improvement goods price gains slowed. "Large-sized goods … such as appliances and outdoor power equipment are actually seeing price growth cooling, suggesting that the impacts of tariffs implemented earlier in the year have already been passed through and aren't leading to new inflation in these groups," said McLaughlin. That is a welcome development and would support some economists' views that the inflationary effects of President Donald Trump's sweeping tariffs would be short-lived. Consumer inflation accelerated in August as businesses passed on higher costs from the import duties.  (Reporting by Lucia Mutikani; Editing by Andrea Ricci)

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By Giulio Piovaccari and Keith Weir MARANELLO, Italy (Reuters) -Ferrari's shares fell more than 16% on Thursday on disappointment over the luxury carmaker's new long-term financial targets, taking the shine off the unveiling of the technology behind its first electric car. The share price drop wiped 13.5 billion euros ($15.67 billion) from Ferrari's market capitalisation. The automaker set a revenue target of 9 billion euros for 2030, an increase on its 7.1 billion euro forecast for this year, but a less ambitious figure than the market had been hoping for. "I think people were expecting a higher top line – but I think it is important that we execute what we say, we cannot commit on something we cannot achieve," CEO Benedetto Vigna said, referring to financial targets, during a presentation of the company's new long term business plan to 2030. Company executives gathered at Ferrari's headquarters in Maranello in northern Italy also to unveil details of Ferrari's new EV called the Elettrica. Ferrari showed off its production-ready chassis – a car base, with battery pack and electric motors – but has not yet determined its price. TARGETS DISAPPOINT, ELECTRIC AMBITIONS SCALED BACK Ferrari's new financial targets failed to meet expectations, hitting its Milan-listed shares, which were down 13.5% by 1300 GMT. Earlier the shares had dropped nearly 17%, their lowest since February 2024. "Ferrari's new 2030 guidance falls below Citi and consensus expectations," analysts at Citi said in a note. Ferrari has also shifted to a less ambitious approach to electrification. It now aims for a 2030 lineup made up of 40% internal combustion engine (ICE) models, 40% hybrids and 20% fully-electric. This marks a change from its 2022 plan, which had targeted 40% EVs, 40% hybrids and 20% ICE models in 2030. Vigna said that, based on these targets, it was reasonable to expect a second Ferrari EV within the plan to 2030. Sources told Reuters earlier this year that Ferrari does not plan to launch a second EV before 2028, citing weak demand for high-performance electric luxury cars. The unveiling of the inner workings of Ferrari's maiden electric car marks a milestone for the company in an auto industry that has been grappling with the transition from the internal combustion engine to the electric battery for a number of years. Ferrari said it would launch an average of four new models per year between 2026 and 2030, maintaining the steady rhythm that has helped it stimulate the interest of its wealthy clients and grow its customer base. The 1,000 horsepower, four-plus seat, four-door Elettrica complements Ferrari's traditional petrol and newer hybrid models. NEW LIFESTYLE STORES SET TO OPEN All strategic EV components, including high-voltage battery packs, e-axles and inverters, are developed and produced in-house at Ferrari's new "e-building" facility in Maranello. Ferrari's active client base has grown by around 20% since 2022, reaching 90,000. To deepen engagement, it plans to open new "Tailor Made" centres in Tokyo and Los Angeles in 2027 to help customers to add personal touches to their vehicles. It reaffirmed its lifestyle strategy expansion, with flagship stores planned in London and New York in 2026, and a broader range of luxury goods and experiences for both owners and fans of the brand. ($1 = 0.8613 euros) (Reporting by Giulio Piovaccari in Maranello, Italy, and Keith Weir in LondonEditing by Jane Merriman and Joe Bavier)

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By Niket Nishant and Sukriti Gupta (Reuters) -Wall Street's main indexes were poised for a muted open on Thursday after Federal Reserve Chair Jerome Powell offered no fresh policy signals, leaving investors to rely on older data to shape sentiment. While markets have priced in aggressive interest rate cuts on hopes that the Fed will prioritize labor market support, minutes from the central bank's September meeting released on Wednesday showed lingering inflation concerns. Investors will also tune in to remarks from other Fed speakers, including Board Governor Michael Barr and San Francisco Fed President Mary Daly. Any hawkish tilt from policymakers could weigh on equities, which have held strong even during a seasonally weak stretch, partly on expectations of lower rates. At 08:43 a.m. ET, Dow E-minis were down 18 points, or 0.04%, S&P 500 E-minis rose 2 points, or 0.03%, and Nasdaq 100 E-minis fell 2.75 points, or 0.01%. The tech-heavy Nasdaq and the benchmark S&P 500 indexes closed at all-time highs on Wednesday. "We're headed for a big correction, but that correction is not likely to happen for a few months," said Peter Cardillo, chief market economist at Spartan Capital Securities. A quiet economic calendar has also prompted traders to closely assess earnings reports from PepsiCo and Delta Air Lines, whose forecasts and executive commentary are likely to be parsed for insights on consumer confidence. These indicators are expected to be used as substitutes for official releases, which have been halted due to the government shutdown, now in its second week. While their correlation with official data varies, some of these proxies have shown worrying trends. Earlier this week, investment firm Carlyle estimated that U.S. employers added just 17,000 jobs last month, far below the 54,000 estimated by economists polled by Reuters in the nonfarm payrolls report. Separately, spot gold prices held above $4,000 an ounce, after breaching the milestone for the first time earlier this week. Bullion's gains have highlighted the strong demand for hedging even as investors chase momentum in equities. However, Israel and Hamas signing off on the first phase of a proposed Gaza peace deal could help remove a long-term overhang on risk assets. Among stocks, PepsiCo rose 0.6% in premarket trading, after the beverage giant beat Wall Street expectations for third-quarter revenue and profit, buoyed by resilient demand for its energy drinks and healthier sodas in the U.S. The company also named Walmart executive Steve Schmitt as its new finance head. Delta Air Lines shares jumped 8.2%. The airline provided an upbeat forecast for the current quarter, after posting stronger-than-expected third-quarter earnings. Other U.S. carriers also gained. United Airlines rose 5.5%, while American Airlines and JetBlue Airways advanced 4.9% and 3.4%, respectively. U.S. retailer Costco Wholesale rose 1.2%, a day after reporting sales data for September. (Reporting by Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Devika Syamnath and Shilpi Majumdar)

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By Nupur Anand NEW YORK (Reuters) -The six largest U.S. banks are expected to report stronger third-quarter earnings next week, catapulted by a rebound in investment banking. JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and Wells Fargo are forecast to benefit from resurgent dealmaking, while a resilient economy keeps borrowers in good shape, propping up consumer and commercial lending divisions.    When major lenders begin to announce results on Tuesday, investors will pay close attention to their economic commentary and expectations for investment banking and trading. "There is going to be a lot of focus on any changes in the credit environment, impact of jobs data, and the overall economic outlook," said Mac Sykes, portfolio manager at Gabelli Funds. "Consumer confidence has been lower, the business confidence is still evolving, and we will watch out to see if there are any lingering concerns from the volatility seen earlier this year." M&A BUOYED BY EASING REGULATIONS, RATE CUTS Investment banking has rebounded after stalling earlier this year following President Donald Trump's tariff announcements. Easing regulations and expectations for further rate cuts have also helped unlock mergers and acquisitions, prompting JPMorgan to call this summer one of its busiest for dealmaking. Hiring has also picked up.  According to Piper Sandler analysts, 49 deals were announced in the third quarter through mid-September, up from 39 in the second quarter and 32 in the same period last year. Global M&A has reached $2.6 trillion, the highest for the first seven months of the year since the 2021 pandemic-era peak. M&A and initial public offerings have driven the dealmaking surge, while equity capital markets stayed robust. Some analysts remain cautious about the deal revival. "Our view on the M&A cycle is that while the bird may be flapping its wings, it hasn't quite achieved lift-off yet," Chris Kotowski, an Oppenheimer analyst, wrote. That compares with expectations for an "epic M&A boom" at the start of the year that has not materialized. Trading revenues for banks are also expected to grow. "Historically speaking, third quarter tends to be a seasonally slow period for trading … That said, Q3 2025 appeared to buck that trend," analysts at Jefferies wrote. Equities trading volumes were robust, and activity was also elevated in fixed income, currencies, and commodities, Jefferies said. Investors will also focus on forecasts for net interest income, the difference between what banks earn on loans and pay for deposits. NII expectations are likely to be solid as the U.S. economy stays resilient, analysts at Baird Equity Research wrote. The biggest lenders have said U.S. consumers remain in good financial health, and borrowers are continuing to make loan payments. Investors will watch for any changes in borrowers' delinquencies or defaults. "While there are no major concerns on the investment banking and the commercial side of the business, on the consumer side we have seen deposit levels and loan growth have remained static," said Brian Mulberry, portfolio manager at Zacks Investment Management. He is looking for any warning signs in the consumer businesses, and "there are also some growing concerns around potential defaults in some smaller firms."   Analysts will also listen to what banks say about loan demand. "Banks are sitting on a huge amount of capital, the macroeconomic environment has held steady, so will wait for management commentary to see if all these things point to a pick up in loan growth in the coming quarters," said Suryansh Sharma, analyst at Morningstar Research Services. Here is what is likely to come from the six biggest U.S. lenders in the third quarter: JPMORGAN CHASE The largest U.S. bank is expected to report on Tuesday that earnings per share rose more than 10%, driven by strong investment banking fees and markets revenue, according to LSEG estimates.  JPMorgan told investors at a conference last month that it expects its investment banking revenue to grow in the low double digits for the third quarter.  BANK OF AMERICA  EPS is likely to jump nearly 17% when it reports earnings on Wednesday, LSEG estimates showed. Investors are looking for clarity on the pace of share buybacks and capital management, which is likely to be addressed at BofA's investor day in November, UBS analysts said. Bank of America expects its investment banking fees to increase 10% to 15% in the third quarter, Chief Financial Officer Alastair Borthwick told investors at the September conference.  CITIGROUP  Analysts see Citigroup's EPS surging 26%, fueled by capital markets. Citi said earlier its investment banking fees and market revenue are expected to rise by a mid-single-digit percentage. WELLS FARGO Investors are focused on the bank's growth plans after its $1.95 trillion asset cap was lifted by regulators this year. They will also pay close attention to Wells Fargo's NII guidance, which was lowered in July and has since held steady. GOLDMAN SACHS  The Wall Street giant is likely to see a nearly 31% increase in EPS, propelled by gains in investment banking and trading, said analysts, who will gauge whether the gains are sustainable. MORGAN STANLEY Morgan Stanley's EPS is estimated to rise by more than 11%. "We believe the strength of the combined franchise across capital markets and the various wealth channels, a global footprint, and strong earnings generation creates a competitive advantage that should allow Morgan Stanley to outperform peers on revenue growth over the medium-term," Ebrahim Poonawala, a BofA analyst, wrote. Bank  Q3 EPS estimates JPMorgan 4.83   Bank of 0.95 America Citigroup 1.90 Wells 1.54 Fargo Goldman 10.99 Sachs Morgan 2.09 Stanley Source: LSEG (Reporting by Nupur Anand in New YorkEditing by Rod Nickel)

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By Anmol Choubey (Reuters) -Gold prices held above $4,000 an ounce on Thursday as investors assessed the Israel-Hamas ceasefire deal, while broader geopolitical and economic uncertainty alongside expectations for U.S. rate cuts sustained bullish sentiment towards the metal. Silver hit the $50 psychological level for the first time, bolstered by gold's record-breaking rally, growing investor demand and a supply deficit. Spot gold was steady at $4,038.59 per ounce at 1226 GMT. U.S. gold futures for December delivery fell 0.3% to $4,057.70. Gold prices rose above $4,000 per ounce for the first time on Wednesday, hitting a record high of $4,059.05. Silver was up 2.2% at $50.01 per ounce. The metal has gained more than 73% this year, benefiting from the same factors as those driving gold's rally as well as tightness in the spot market. "The interesting aspect about the silver market is that the net long positions are only modestly higher so this is not a rally based upon speculative interest. It's got some pretty solid fundamentals attached to this move in the silver price," said independent analyst Ross Norman. U.S. President Donald Trump announced that a ceasefire and hostage deal had been reached between Israel and Hamas under the first phase of his plan to end the war in Gaza. "Gold's rally is facing resistance as the Gaza diplomatic breakthrough reduces risk-off flows, while the ongoing U.S. dollar recovery undermines bullion's strength, leaving it vulnerable to pullbacks," said Nikos Tzabouras, Senior Market Analyst at Tradu. "However, the bullish bias remains intact, and the path to new all-time highs is still wide open." The U.S. dollar index hovered near a two-month high, making dollar-priced bullion more expensive for overseas buyers. [USD/] Geopolitical risks, including the Middle East crisis and the war in Ukraine, alongside strong central bank gold buying, ETF inflows, U.S. rate cut expectations, and economic uncertainties stemming from tariffs, have all contributed to gold's rally. The metal has gained more than 53% year-to-date and is on track to record the largest annual gain since the 1979 oil crisis. Federal Reserve officials agreed that risks to the U.S. job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation, according to minutes of the September 16–17 meeting released on Wednesday. Markets are currently pricing in a 25 basis-point cut in both October and December. [FEDWATCH] "The ongoing U.S. government shutdown has injected momentum into (gold's) trade, alongside mounting fiscal concerns in Japan and France amid recent political leadership changes," UBS said in a note. Non-yielding gold thrives in a low interest-rate environment and during times of economic and geopolitical uncertainty. "If risk sentiment continues to improve, this may drag gold prices lower in the near term as investors rush back toward riskier assets," said Lukman Otunuga, senior research analyst at FXTM. Platinum edged 0.1% higher at $1,664.30. Palladium gained 1.9% to $1,476.35, hitting a more than two-year high. (Reporting by Anmol Choubey in Bengaluru; Editing by Mrigank Dhaniwala, Kirsten Donovan and Ed Osmond)

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FRANKFURT (Reuters) -ECB policy is robust enough to respond to changes the euro zone inflation outlook, so the bank can afford to keep a steady hand until it gains more clarity, policymakers concluded last month, according to the accounts of their September 10-11 meeting. The ECB left rates unchanged in September and even offered a modestly upbeat assessment of the euro zone economy, indicating that the bar for any further policy easing is high, even if U.S. tariffs still cloud the outlook. "The current level of interest rates should be seen as sufficiently robust in managing shocks, in view of two-sided inflation risks and taking into account a broad range of possible scenarios," the accounts of the meeting showed. MATERIAL CHANGE AHEAD The chance of further rate cuts declined even further in the weeks since the meeting given relatively benign data and comments from ECB President Christine Lagarde that the range of risk around the inflation outlook was narrowing. Markets now perceive almost no chance of a rate cut this year after 2 percentage points of easing in the year to June, and see a one-in-three chance of one last move sometime in the first half of next year. Policymakers agreed that the outlook was bound to change but the direction was unclear. "Several" thought inflation was at risk of undershooting the bank's 2% target and a "few" feared it would go too high. "The current situation was likely to change materially at some point, but it was currently difficult to know when and in which direction," the ECB said in Thursday's accounts. "There continued to be a high option value to waiting for more information." But policymakers were in agreement that incoming information was broadly in line with their previous forecast and some of the worst risks had receded after trade agreement with the U.S. For now, the ECB would assess the effects of tariffs, the impact of uncertainties and other risks, like the stronger euro, Chinese dumping, the risk of a U.S. market correction, and increased defence spending, the accounts showed. Still, investors think the door to further easing has not fully closed, given ample downside risks. France is in turmoil, German industrial output is plunging and German exports to the U.S. are falling fast. Household savings keep going up, private consumption is weak and corporate profitability is shrinking. (Reporting by Balazs Koranyi; editing by Mark Heinrich and Ros Russell)

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STOCKHOLM (Reuters) -Novo Nordisk said on Thursday it would buy U.S.-based Akero Therapeutics for up to $5.2 billion to gain access to a promising liver disease drug candidate, in the first major deal by the Danish drugmaker's new CEO to boost growth. Mike Doustdar, who took the helm at the Wegovy maker in July, has been tasked with stemming market share losses to U.S. rival Eli Lilly. Last month, Novo said it would cut 9,000 jobs. He has said the company would focus on developing the next-generation of highly effective obesity and diabetes drugs that can also treat related cardiometabolic conditions such as MASH, rather than expand into other disease areas. Akero is testing its drug, efruxifermin, in a late-stage trial in patients with severe liver scarring, or cirrhosis, due to a type of fatty liver disease known as metabolic dysfunction-associated steatohepatitis (MASH). Efruxifermin could be a potential breakthrough in the treatment of fatty liver disease and become a "cornerstone" treatment either on its own or in combination with Wegovy, Doustdar said in a statement on Thursday. Novo has offered Akero shareholders $54 per share upfront in cash, which represents a premium of about 16.2% to Akero's last close. This represents about $4.7 billion in upfront payment. Shares of the company were up nearly 18% in premarket trading. The Danish drugmaker will also pay an additional $6 per share if efruxifermin secures a full U.S. approval for the condition by June 30, 2031, the companies said. DEALS GETTING BIGGER Akero marks a sharp escalation in deal size for Novo, as its recent biotech acquisitions in metabolic diseases typically ranged between one and two billion dollars. Last year, the company bought Cardior Pharmaceuticals, which is developing a treatment for hypertension, for up to $1.1 billion. Novo's Denmark and U.S.-listed shares were both down nearly 2%. The acquisition is "costly" and indicates Novo is "still building on the breadth of its portfolio", Nordnet analyst Per Hansen said. Some Novo investors recently told Reuters that they want to see the company invest heavily in research and development to build out its future drug pipeline and revive investor confidence. Some have also said they would prefer the company diversify beyond weight loss and diabetes. (Reporting by Anna Ringstrom in Stockholm, Mariam Sunny in Bengaluru and Maggie Fick in London; Additional reporting by Elviira Luoma; Editing by Essi Lehto, Leroy Leo and Sriraj Kalluvila)

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By Giulio Piovaccari and Keith Weir MARANELLO, Italy (Reuters) -Shares in luxury carmaker Ferrari tumbled as much as 16% on Thursday on disappointment over new long-term financial targets, taking the shine off the company's unveiling of the technology behind its first electric car. The share price drop erased more than 12 billion euros ($13.9 billion) from Ferrari's market capitalisation. Company executives gathered at Ferrari's headquarters in Maranello in northern Italy with the focus on providing details of the new EV, called the Elettrica, as well as its business plans for the rest of the decade. The Elettrica is due to go on sale next year, though the company stressed that petrol and hybrid vehicles will remain at the heart of its lineup until 2030. But Ferrari's leadership faced questions over financial targets for the period until 2030. DISAPPOINTING TARGETS, SCALING BACK ELECTRIC AMBITIONS "Ferrari's new 2030 guidance falls below Citi and consensus expectations," analysts at Citi said in a note. The automaker set a revenue target of 9 billion euros for 2030, an increase on its 7.1 billion euro forecast for this year, but a less ambitious figure than the market had been hoping for. "We want to make sure that we keep delivering on our promises," CEO Benedetto Vigna told analysts, referring to the targets. In the event in Maranello, Ferrari revealed the Elettrica's production-ready chassis – a car base, with battery pack and electric motors – but has not yet determined its price. Ferrari also shifted to a less ambitious approach to electrification. It now aims for a 2030 lineup made up of 40% internal combustion engine (ICE) models, 40% hybrids and 20% fully-electric. This marks a change from its 2022 plan, which had targeted 40% EVs, 40% hybrids and 20% ICE models in 2030. The unveiling of the inner workings of Ferrari's maiden electric car marks a milestone for the company in an auto industry that has been grappling with the transition from the internal combustion engine to the electric battery for a number of years. Ferrari said it would launch an average of four new models per year between 2026 and 2030, maintaining the steady rhythm that has helped it stimulate the interest of its wealthy clients and grow its customer base. The 1,000 horsepower, four-plus seat, four-door Elettrica complements Ferrari's traditional petrol and newer hybrid models. NEW LIFESTYLE STORES SET TO OPEN All strategic EV components, including high-voltage battery packs, e-axles and inverters, are developed and produced in-house at Ferrari's new "e-building" facility in Maranello. Sources told Reuters earlier this year that Ferrari does not plan to launch a second EV before 2028, citing weak demand for high-performance electric luxury cars. Ferrari's active client base has grown by around 20% since 2022, reaching 90,000. To deepen engagement, it plans to open new "Tailor Made" centres in Tokyo and Los Angeles in 2027 to help customers to add personal touches to their vehicles. It reaffirmed its lifestyle strategy expansion, with flagship stores planned in London and New York in 2026, and a broader range of luxury goods and experiences for both owners and fans of the brand. ($1 = 0.8610 euros) (Reporting by Giulio Piovaccari in Maranello, ItalyEditing by Jane Merriman and Joe Bavier)

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By Marc Jones and Phoebe Seers LONDON (Reuters) -Global financial authorities are set to miss a 2027 target set by the G20 group of nations to make international cross-border payments faster, cheaper and more transparent, the G20's Financial Stability Board said on Thursday. Goals set in 2021 included cutting the global average cost of a retail payment to no more than 1% and for 75% of wholesale and retail payments to be credited within an hour of being made. While most of the initial "Roadmap" work has now been completed, an FSB progress report published ahead of G20 meetings later this month said it had not yet translated into tangible improvements for end-users at the global level. "It's becoming clear that the (G20) targets are not going to be hit by 2027," FSB Deputy Secretary General Martin Moloney told Reuters, saying the huge number of countries involved and challenges of overhauling infrastructure had caused problems. The report said key performance indicators (KPIs) showed only a slight improvement at a global level since they were first calculated in 2023. While the speed of both wholesale international payments and remittance payments – where individuals send money back to their home countries – had improved, the costs remained high and there had been insufficient progress in terms of payment transparency. With the 2027 target now unrealistic, Moloney said G20 decision makers would have to choose whether to extend it or come up with a fresh one altogether. "That needs to be a rich and focused debate at G20 level," Moloney said. "If we fall short of those KPIs we will still have an unsatisfactory situation," he said, in terms of the global payments system. STUBBORNLY HIGH COSTS One of the needs is for countries' payments plumbing to operate all day every day and to use standardised language so that moving money between countries and weeding out fraud and sanctions infringements is easier. Costs of cross-border payments remain stubbornly expensive, the FSB's report showed, with person-to-person payments in sub-Saharan Africa the highest globally and now more costly than they were, at 4% compared to 3.2% in 2023 and the less than 1% the G20 is targeting. Some countries are also now seeing cryptocurrencies like bitcoin and so-called stablecoins being used for payments or transferring money. Moloney said that it is an open question at this point what contribution stablecoins will make to the global payments system. "The real issue is in the first and last leg," he said, referring to difficulties in finding the right method to make a payment and a recipient getting their payment at the other end. "I haven't seen anything persuasive (with regards to stablecoins) to suggest they would solve those issues." (Reporting by Marc Jones and Phoebe Seers; Editing by Mark Potter, Kirsten Donovan)

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By Doyinsola Oladipo NEW YORK (Reuters) -The federal government shutdown is hamstringing the U.S. travel industry, and its effects are worsening as the stalemate in Congress continues. Travelers are starting to cancel trips and avoid airports until U.S. lawmakers find a way to reopen the government, which may not happen for several more days or weeks. That means a longer stretch of time for key workers – air traffic controllers and security screeners – to go without pay. More workers are calling in sick, leaving fewer staff to handle demand. Travel representatives are already fretting about the coming Columbus/Indigenous People's Day holiday weekend, the first since the shutdown started nine days ago on October 1. The stalemate coincides with peak corporate travel season at a time when the industry is already struggling to achieve its full potential, said Geoff Freeman, president of the U.S. Travel Association. "If we introduce concern into the system — concern about delays, concern about cancellations, concern about TSA being less efficient — we're leading people to stay in the office," Freeman said, referring to the Transportation Security Administration. "It's another reason for people to stay home, whether it's Americans staying home or foreign travelers avoiding the United States." The United States is the only travel market expected to see a decline in spending by foreign tourists in 2025, as inbound visits are expected to decrease 6.3% year-over-year to 67.9 million, according to data from US Travel and Oxford Economics. Domestic travel is expected to increase 1.9% this year. The outlook may be improving, as Delta Air Lines said Thursday that sales have accelerated in recent weeks.  Travelers still planning to visit the U.S. have heightened concern about what the shutdown means for their vacation. "There is some anxiety from 'What does that mean? Does that mean that we cannot fly? Are people not able to enter the country?' All those kinds of questions are coming up," said Peter van Berkel, president of Travalco, an inbound tour operator. Some travelers abroad are now hesitant to book, van Berkel said. Nearly 12,000 flight delays from Monday to early Wednesday were in part tied to Federal Aviation Administration slowdowns due to controller absences, while about 200 flights were canceled. Air traffic control staffing issues have emerged sooner in this shutdown than the last major halt to government funding in 2019, leading to unexpected shortages in cities around the country. If it continues, travelers will see "erosion of service" as frustrated air traffic controllers and TSA officers get tired and call in sick, said Sheldon Jacobson, a University of Illinois professor who helped design TSA Pre-Check. "The largest shutdown in history was 35 days in the first President Trump term. Are we going to see 35 days again? Right now, there's no evidence of it being reconciled and ended, but these things will change very, very quickly and unpredictably," he said. Arizona-based travel agent Sonia Bhagwan said two clients have asked if they should cancel their Thanksgiving and Christmas vacations to Hawaii. Wayne Milano, 44, of Monmouth County, New Jersey, said he canceled a business trip to India and will not fly until the stalemate is resolved. Citing bad luck with delays and cancellations, Milano told Reuters air travel is out of the question for now. "I'm at that point where I'm like, I'm not even going to chance it for the first week or two, let's just see how things play out." (Reporting by Doyinsola Oladipo in New York; Editing by Richard Chang)

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