Closing post
Time to recap.
Hotel, travel and airline stocks fell into the red on Friday, as they fell victim to a sell-off linked to the Heathrow Airport closure caused by a fire at a nearby electrical substation overnight.
Among the fallers were BA and Iberia owner IAG, as well as InterContinental Hotels Group, which owns hotel brands including InterContinental, Regent, Crowne Plaza, and Holiday Inn. Premier Inn owner Whitbread also took a hit, as did German-travel business TUI.
The International Air Transport Association (IATA) also took a swipe at Heathrow, saing tha serious questions needed to be answered about how such a core piece of infrastructure could rely on a single source of power, without any backup plans.
Meanwhile, the government overshot the UK deficit forecasts in February, having borrowed £10.7bn last month compared to forecasts of £6.6bn.
Some analysts said that while the data points to further welfare and government department cuts, it could eventually mean tax rises in the autumn budget later this year.
It created a more gloomy picture for chancellor Rachel Reeves who is due to deliver her spring statement next week.
Howard Bassford, a partner at lawfirm DLA Piper, says that the Heathrow closure proves how essential infrastructure upgrades to the grid and rail are to the UK.
They don’t just provide new infrastructure, they ensure that the risk of events like the power loss at Heathrow are managed better.
When there are two rail routes or multiple power lines there is no single point of failure. New infrastructure makes us all safer and more secure.
