Due to reports that the UK is under new Covid restrictions, the pound has fallen to its lowest point in over a year. Travel stocks are also on the decline.
Reports about a Plan B move have sent sterling further down, with the currency reaching its lowest point in over a year.
After briefly touching $1.3198, the pound fell 0.2pc after it touched its lowest level in a few months. This was just after it had fallen to its lowest level since December last year when you guessed correctly – more severe Covid restrictions were announced.
Boris Johnson will announce that he is moving into Plan B measures, which include vaccination passports and work from home orders, in an effort to stop the spread of the Omicron variant.
The pound fell to its lowest level for a year against the US dollar. Travel and leisure stocks also suffered.
IAG, British Airways’ owner, is the largest faller on the blue-chip index. Wizz Air and EasyJet also fell. Restaurant Group, Cineworld, and JD Wetherspoon were among the top mid-cap fallers.
Mike Cherry is chairman of the Federation of Small Businesses.
Small businesses that are already facing supply chain disruptions, inflation and shortages will be impacted by new measures to limit the spread of Covid in the critical festive period.
We need to know what Plan B entails. The Government must also explain the conditions that would allow us to return to Plan A. It should also outline what Plan C will entail and what support measures will be implemented should stricter restrictions take place.
Plans to combat the virus must be matched with plans to protect the economy as well as the livelihoods of the people who live there.
According to The Financial Times, the Government is moving into Plan B. This will include vaccine passports for large venues as well as a work-from-home order.
Restaurant Group which includes brands such as Frankie & Benny’s, fell as high as 6.2pc while Cineworld fell 5.6pc towards the bottom of FTSE 250.
The airlines have also suffered a loss, with WizzAir, EasyJet, and British Airways owner IAG all falling around 4pc.
