fxstreet.com 23 Feb, 2021 09:00 am

Easy does it as travel and leisure drive gains, HSBC resumes the dividend

It has been a positive start for markets in Europe this morning, with the FTSE100 leading the way buoyed by outperformance in travel and leisure stock

Forced to cut its dividend last year by the UK’s PRA as the COVID-19 crisis rippled across the world the bank said in Q3 that it hoped it would be able to start paying a dividend when it reported its full year numbers at the end of current fiscal year.While this appears to be a little on the low side, CFO Ewen Stevenson said that this was because the bank wanted to strike the right balance between paying out to shareholders, and taking advantage of future growth opportunities.The bank said it was looking to shift $100bn of capital to Asia, while also shifting a raft of key management positions out of the UK into Hong Kong, as it looks to focus on wealth management.The hotel business has been another area hit hard by the pandemic, and this morning’s full year numbers from Intercontinental Hotels Group, who own Holiday Inn, illustrate this quite starkly, as full year revenues fell to $992m, down from last year's $2.

2bn in cash, ahead of the announcement of its full year numbers which are due next week.IAG, TUI Travel as well as Premier Inn owner Whitbread have seen some decent gains in early trade this morning, while Rolls Royce shares are also higher as markets price in a significant pickup in air travel by the end of the summer.

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