IVE MARKETS-UK aviation: reasons to cheer a little, finally?8 Oct 2020 15:22
IVE MARKETS-UK aviation: reasons to cheer a little, finally?
"UK AVIATION: REASONS TO CHEER A LITTLE, FINALLY? (1237 GMT)
The aviation sector has gone through a lot this year, but for some of the most battered
companies during this pandemic there could be a ray of light, analysts say.
A combination of hopes (for a vaccine, a Brexit deal and financial aid from the U.S.
government) are giving a hand to some European companies in the aviation space.
"We are seeing optimism for UK airlines," says Joshua Mahony at IG, mentioning the
possibility of eased quarantine requirements in the event that ‘operation moonshot’ brings in
airport COVID-19 testing. He adds a "huge" $25 billion in airline aid from the U.S. government
is also helping sentiment.
Russ Mould at AJ Bell says comments from Bank of England Governor Andrew Bailey are also
supporting British stocks like Rolls Royce and IAG, whose shares are down more
than 70% since January, but are topping the STOXX 600 index today.
"He (Bailey) feels a Brexit deal can be done and the current wave of COVID may not be as bad
as that seen in spring," Mould says."
https://www.lse.co.uk/news/RR./live-markets-uk-aviation-reasons-to-cheer-a-little-finally-viaxsyv11q4rpas.html