Diageo Drops As Investors Drink Less Expensive Brands & FTSE Fades -

Diageo Drops As Investors Drink Less Expensive Brands & FTSE Fades

Nov 10, 2023Jeremy ParkinsonFinance0

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On Friday, the UK’s FTSE 100 experienced a decline, influenced by a drop in metal prices leading to a sell-off in metal mining shares. The exporter-focused FTSE 100 was down 1.4%. Precious metal miners lost 1.2%, and the industrial metal miners index dropped 0.9%, following the fall in prices of most nonferrous metals after hawkish comments by U.S. Federal Reserve officials signalled further rate hikes. Additionally, Diageo, a major spirits company, saw a significant decline in its stock price (down 7.9%) after warning about its first-half profit. Diageo cited a “materially weaker” performance in Latin America and the Caribbean, with sales in the region expected to decline by more than 20% year-on-year in H1 2024, influenced by macroeconomic pressures leading to lower consumption and consumer downtrading. Diageo’s stock was the top percentage loser on the FTSE 100 index and among the top losers across the London market, with its shares down 11.1% year-to-date.On the positive side of the ledger amidst hundreds of pro-Palestine activists staged a blockade at BAE Systems'(0.92%) factory in Kent as a protest against Israel’s bombardment of Gaza. The activists gathered at the site in Chatham, Rochester, at around 7 am, blocking the two entrances to the weapons manufacturer’s facility. The demonstration was part of an international day of action called for by trade unions with the aim to “end complicity in Israel’s war crimes.”BAE Systems responded to the situation, stating that it is “horrified by the situation in Israel and Gaza” and emphasising that it operates under strict regulations and complies fully with all applicable defence export controls, subject to ongoing assessment.The blockade involved a diverse group of participants, including health workers, teachers, hospitality workers, academics, artists, and others. These individuals are members of various trade unions, including Unite, Unison, GMB, the NEU, the BMA, the UCU, Bectu, and the BFAWU.
FTSE Bias: Bullish Above Bearish below 7300