Pub groups were on the rise as investors cheered moves to reopen the hospitality sector.
Ministers are said to be looking at whether pubs, restaurants and cafes could be back in action by June 22, rather than July 4, in a bid to ‘save the summer’.
A reduction to Britain’s two-metre social distancing rule to just one-metre is also on the cards, meaning venues could serve more customers, according to reports.
It gave brewery and pubs operator Marston’s a boost, with shares rising 8.3 per cent, or 5.75p, to 75.35p.
Rival Mitchells & Butlers was up 6.3 per cent, or 13.5p, to 227p and Tim Martin’s Wetherspoons gained 0.6 per cent, or 7p, to close at 1174p.
Frankie & Benny’s owner The Restaurant Group made modest gains as well, edging up 0.7 per cent, or 0.5p, to 74.5p and Premier Inn and Beefeater owner Whitbread rose 1 per cent, or 27p, to 2774p.
In another positive boost for the hospitality sector, the Government’s plans to help the economy recover from Covid-19 are also said to include making it easier for venues to serve customers outdoors. The summer is crucial for hospitality, with Wetherspoons founder Martin saying efforts to reopen the sector more quickly were a ‘psychological boost’ amid fears that mass redundancies could be on the way otherwise.
And despite new quarantine rules coming into effect, which require all those arriving into the UK to self-isolate for two weeks, the recovery optimism also boosted some travel operators.
Cruise provider Carnival rose 9.9 per cent, or 142p, to 1573.5p, although its chief executive Arnold Donald played down suggestions that cruises could restart as early as August 1. At the same time, British Airways owner IAG was up 1.3 per cent, or 4.1p, at 331.6p.
Airline bosses have said they will try to overturn the ‘unenforceable’ rules in the courts but ministers insist they are ‘proportionate’ and will help to prevent a second wave of coronavirus infections.
Rolls-Royce got a lift from the news that airlines around the world are preparing to rev up their engines again, following the easing of lockdown. Shares in the engineering company were up 11.9 per cent, or 42.5p, to 398.4p.
The firm has been beaten down since the pandemic began and flights were grounded, since it makes many essential components for aeroplanes.
However, the FTSE100 fell into negative territory, finishing 0.2 per cent, or 11.71 points lower at 6472.59.
It was dragged down in part by drugs giant Astrazeneca, which saw shares fall 2.7 per cent, or 227p, to 8200p after reports emerged that it had held merger discussions with smaller US rival Gilead.
Russ Mould, investment director at AJ Bell, said: ‘Investors are unlikely to welcome a large deal at a time when both companies are trying to fight coronavirus, as it could prove to be a distraction to management.
‘The timing seems wrong.’
And shares in fellow blue chip firm HSBC also dipped 0.5 per cent, or 2.2p to 420.8p.
That was after the High Street lender was said to have warned that its Asian operations face retribution from Beijing if the UK seeks to exclude Chinese telecoms firm Huawei from 5G networks.
Mark Tucker, the bank’s chairman, is said to have made personal representations to Prime Minister Boris Johnson about the matter.
The mid-cap FTSE250 was down slightly, by 0.5 per cent or 92.42 points to 18136.9 points, despite a recovery at Aston Martin, which climbed 12.1 per cent, or 8.7p, to 80.7p.
But the broader market was weighed down by a report from industry lobby group The City UK which raised concerns that British companies are taking on too much debt.
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