Three important things you need to know from across the markets this morning from investment writer, Tony Cross.
Definitely a case of the glass being half empty at Diageo this morning where interim results laid bare the impact of multiple headwinds faced by the company. Adverse foreign currency moves took a toll, as did a poorly performing Latin America and Caribbean region, whist quick swings in consumer sentiment were also flagged as being problematic. Hopes are for a better second half but investors had knocked back the shares by more than 3% in early trade.
Advertising giant WPP was making a splash at the top of the FTSE-100 this morning as the impact of its capital markets day update was priced in. This included news of cost savings and margin improvements. Following a challenging 2023, management are also expressing confidence over the outlook with growth set to accelerate. Shares were 4% higher a couple of hours into the day.
The tool and equipment hire service received something of a bruising today in the wake of a trading update. Exposure to the construction sector has left the business struggling, with annualised revenue growth slipping at the end of the third quarter. New contracts are being won, but the bulk of the impact here won’t be felt until FY25. Supply chain improvements are also being seen, whilst the company continues to bolster its digital offering, but the punchline is that profits for the full year are now expected to come in below previous forecasts. The question is whether the 17% mark down in the share price makes this a buying opportunity.
