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* FTSE 100 up 3.9%, FTSE 250 gains 5.7%
March 20 (Reuters) - London's stock markets surged back into
the black on Friday, as investors eyed fresh government support
for companies facing financial strain in the wake of the
coronavirus pandemic.
The blue-chip FTSE 100 .FTSE jumped 2.7%, with shares in
Holiday Inn owner IHG IHG.L soaring 8.9% after it announced a
series of measures to cut costs and ride out the worldwide
shutdowns and travel restrictions. Travel stocks including Easyjet EZJ.L and Carnvival Corp
CCL.N also rose.
Finance minister Rishi Sunak is set to outline plans to prop
up companies and workers, with reports saying he is considering
tax holidays for companies and reversing the pay-as-you-earn tax
system to funnel directly cash to companies so they can keep
paying staff. The Bank of England cut borrowing costs to record low on
Thursday and promised 200 billion pounds of bond purchases, in a
second emergency move to cushion the impact of the
outbreak. Energy stocks such as Royal Dutch Shell RDSA.L and BP
BP.L gave the biggest boosts to the FTSE 100 as oil prices
jumped after U.S. President Donald Trump hinted he may intervene
in the price war between Saudi Arabia and Russia at an
"appropriate time". O/R