BAT Hit By FDA Tobacco Comments

Fri, 28th Jul 2017

Shares in British American Tobacco are down by 8 percent following the publication of some comments by the FDA’s Commissioner Scott Gottlieb on the issue of tobacco use. The commissioner said that the majority of death and disease attributable to tobacco is caused by people becoming addicted to smoking. Cigarettes are the only legal consumer product that will, if it is being used as intended, kill half of its long term users.

Gottlieb said that unless something changes soon, 5.6 million young people who are alive today will die prematurely because of the consequences of long term tobacco use. He called for companies to come together to create a world where cigarettes are not addictive, and where adults that wish to use nicotine could take it in using less harmful sources. He believes that it is vital for tobacco companies to pursue that issue and goal as a piece of common ground. The FDA Wants to see nicotine in cigarettes reduced to non-addictive levels.

BAT was the worst hit company following the report, but Imperial Brands also struggled, ending the day down by 6.5 percent.

Meanwhile, shares in BT also slipped, as the telecoms company faced charges relating to their Italian accounting scandal. The communications company has been forced to pay out £235 million to two of its rivals, in order to avoid legal action. Shares in Barclays have fallen too, after the bank reported a loss of £1.2 billion over the first half of the year, relating to its withdrawal from Africa.

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