The US and Cuba have agreed to restore diplomatic ties, which sent shares in listed cruise shipping groups sharply higher. However, it is not yet known what promised easing of travel restrictions would mean in practice.
The United States and Cuba agreed on Wednesday to restore diplomatic ties that Washington severed more than 50 years ago, and President Barack Obama called for an end to the long economic embargo against its old Cold War enemy, the Reuters news agency reported yesterday.
“Travel restrictions that make it hard for most Americans to visit will be eased, but the door will not yet be open for broad U.S. tourism on the Caribbean island,” Reuters said.
“Obama's announcement also will not end the U.S. trade embargo that has been in force for more than 50 years. That is codified in legislation and needs congressional approval. Obama said he would seek that approval but likely faces a struggle,” the news agency stated.
However, it was not immediately clear what the warming of relations between the two countries that are separated only by 90 miles of sea would mean in practice.
Shares in listed cruise shipping companies, however, rose sharply on the news. Norwegian Cruise Line Holdings gained 4.57% to close at $45.76, Carnival Corp rose 3.46% to $44.61 in New York, while Carnival plc in London firmed 1.1% to finish trading at £28.01. Royal Caribbean Cruises Ltd (RCCL) rallied 6.62% to $81.54 and 0.7% to NOK585.0 in Oslo. The news came late in the day in Europe, which explains the smaller gains in European listed shares than those quoted in the US.