On Friday, British American Tobacco (BAT) shares dropped more than 2 % in light of the US Food and Drug Administration (FDA) banning the sales of six Vuse Alto vape flavours in the U.S.

BATS shares are down 3.5% and are worth 2,448p at the time of writing.

On Thursday, the FDA stated that it has issued a ban on three menthol and three mixed-berry vape flavours in the U.S. These Vuse Alto products are being sold by BAT´s subsidiary, R.J. Raynolds.

Now, BAT is not allowed to market or sell these flavours within the U.S. According to the FDA statement issued on Thursday, these vapes did not meet the FDA Protection of the Public Health standards.

More specifically, the FDA stated that these six flavours should be banned as they do not seem to be helpful in either reducing the amount of cigarettes consumed by adults who already smoke or in making these adults switch from cigarettes to vaping.

Vuse Alto is the main vaping product sold by BAT in the US. The newly banned menthol flavour alone accounts for up to 75% of all of BAT´s US sales, said Jefferies analyst Owen Bennett in a comment to Reuters.

“Vaping and e-cigarettes—so-called ‘next-generation products’—were  the industry and British American Tobacco’s answer to increasingly tight restrictions on the sale of cigarettes,” said Russ Mould, AJ Bell Investment Director, in a comment for UK Investor Magazine.

“If regulators start clamping down hard in these new areas too, it will raise questions about the sustainability of the business in the decades to come,”, he continued.

The FTSE 100 fell on rates concern on Friday with housebuilders, banks and consumer discretionary stocks among the most heavily hit.

Another day and another shift in sentiment driven by interest rate expectations. On Friday, the concerns were centred on UK interest rates and comments from the Bank of England’s chief economist.

“The higher-for-longer interest rate narrative just became louder. The Bank of England’s chief economist, Huw Pill, has said the bank won’t be quick to cut rates – even if a moderation of inflation occurs,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“Simply put, inflation needs to be closer to the 2% target before anyone can get their hopes up that the cost of living and borrowing is about to sweep down to more palatable levels.”

Housebuilders Taylor Wimpey and Barratt Developments struggled with the prospect of higher mortgage rates for an extended period as the two fell more than 1%.

UK banks were also weaker as investors weighed how higher borrowing costs would impact the ability of their customers to repay debt.

Consumer discretionary constituents Kingfisher and JD Sports were down 2.1% and 2.7% respectively.

St James’s Place was the biggest faller following media reports the wealth manager was facing increased scrutiny from the regulator regarding charges.

Red Rock Resources shares jumped on Friday after announcing assay results from their lithium project in Zimbabwe operated by subsidiary African Lithium Resources.

Three sets of 2kg pegmatite samples were sent for testing at an ISO-accredited laboratory in Harare, Zimbabwe. The results were as follows.

These results are supportive of economically viable lithium grades and will spur further evaluation of the project.

Red Rock Resources shares were over 38% higher at the time of writing on Friday.

Red Rock Chairman Andrew Bell commented:

“These high grade Lithium Oxide results show the potential that exists, and we continue discussions with potential customers and contractors. Further news will be released as it becomes available.

“The technical information in this announcement has been reviewed by Mr Joseph Komu, a member of AusIMM and a Manager employed by the Red Rock group. Mr Komu is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM.”