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The FTSE 100 is trading higher as the UK prepares to review some of the lockdown restrictions in place and despite a warning from the Bank of England that the UK economy could shrink 14% in 2020 due to the measures taken to halt the spread of Covid-19.
Boris Johnson is set to meet his cabinet today (7 May) to discuss the possibility of easing restrictions, with a view to making an announcement on Sunday.
The FTSE 100 is up 0.4%, or 23.99 points higher, at 5,877.75 at 08.47am. BT has tumbled 6.7% to 106.55p after announcing it has scrapped its dividend.
The telecoms giant said it would resume payment at a lower rate as it sought to firm up liquidity after reporting a fall in annual profit amid the ongoing Covid-19 pandemic.
Its share price fall also comes as Virgin Media and O2 confirmed they are set to merge.
Rolls-Royce is 4.2% lower at 281.50 after it warned of 'significant disruption' to the global aerospace industry due to Covid-19, which may take 'several years' to recover.
But the group now expects to deliver up to £1bn of cash savings in 2020.
RSA rose 4.5% to 386p following 'strong' first quarter results, with group business operating profit up by double-digit percentages.
However, the group said that claims frequency was down in April and that motor accident lines were 'most affected'.
British-airways owner International Consolidated Airlines Group has shed 1.4% to 193.86p as it swung to a loss in the first quarter and warned of a further deterioration in performance in the second quarter as the Covid-19 pandemic brought aviation travel to a halt.
InterContinental Hotels has nudged 0.5% higher to £34.50 despite warning of a deeper slump in revenue per room in April after occupancy levels dropped to 'historic lows' in March and April.
Morgan Sindell has climbed 4.3% to £12.58 as the construction and regeneration group reported that trading and activity has been significantly impacted across all divisions since the first 10 weeks of the year and that it had placed 1,700 employees on furlough.
3i Infrastructure is up 2.9% to 260.32p as it raised its annual dividend after reporting a rise in annual income and return.