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FTSE 100 finishes 70 points higher with British Airways owner IAG up over 20%

jasonhawkes.com
jasonhawkes.com

The FTSE-100 finished 70 points higher today with airlines, hotels and travel stocks leading the charge.

The moves come on the back of reports that German national carrier Lufthansa is on the brink of a €9 billion bailout from the German government.

As a result British Airways owner IAG, easyJet and Ryanair all made hefty gains.

Lufthansa still needs to get the nod from the European Commission, who are likely to impose a number of conditions in return for its approval, including the surrender of key flight slots.

Also propping up sentiment in London is Project Birch, a plan authorised by Rishi Sunak to bailout strategically important companies facing acute financial difficulties. Jaguar Land Rover is among those seeking taxpayer money.

Other risers included cruise ship owner Carnival and Holiday Inn owner IHG along with TUI Travel, whose shares have shot up over 35% to their best levels since early April.

HSBC shares were also in focus on reports yesterday that it is set to go beyond the cuts outlined earlier this year, when it said that it would cut 35,000 jobs and make up to $4.5 billion in cost savings.

There is speculation that the effects of the coronavirus pandemic appear to have prompted a rethink, and that the bank is also considering a move to get rid of its US retail bank - which has been a significant drag on profitability.

Meanwhile the restructuring of Aston Martin continued as new owner Lawrence Stroll tries to turn the business around.

The company has confirmed that Tobias Moers, the current head of Mercedes AMG performance division will be its new chief executive, replacing Andy Palmer.

On the other side of the world Asian markets leapt on hopes Japan would be easing coronavirus lockdown restrictions.​