Traders of financial instruments around the world yesterday reacted negatively towards the UK Government’s Covid policies. The pound fell to its lowest against the dollar in three months, alongside the FTSE 100 shedding 183 points by 3pm down 2.6%, another three month low.
Scouring the financial media it seems that the government’s so called ‘Freedom Day’ and the emergence of the ‘Pingdemic’ have spooked investors.
The government mid-afternoon put out a statement saying that the Covid app will remain in place and will not be tweaked. It did nothing to allay the markets concerns, if that was what the statement was designed to do.
This was followed by the Downing Street Press Conference. A global event that will only have confused markets even more as mixed messaging was brought into a new dimension by the PM and his two advisors. Irreversibility being re-defined as reversible just one of many remarkable revelations.
Shares worst hit include:
- IAG, Owners of British Airways – 5.8%
- Holiday Inn – 4.3%
- Intercontinental Hotels Group – 4.2%
- Whitbread – 4.1%
- Compass Group – 3.9%
The government’s majority means it does not have to listen too closely to the electorate, or the opposition who rarely oppose very much, at least not loudly. But that majority loses all power once it attempts to travel outside of our borders.
The markets have improved this morning but yesterday’s actions will only add to international markets questioning of the UK Government’s credibility.
News from the hospitality and catering industry is also being featured extensively in our Facebook and twitter social media accounts with the opportunity to engage with others in hospitality and share your views.
Hospitality & Catering News: Freedom Day drives Sterling, London Stock Exchange and leading Hospitality Shares down. – 20 July 2021 – Freedom Day drives Sterling, London Stock Exchange and leading Hospitality Shares down.
Copyright: All content in Hospitality & Catering News is protected by copyright