Demand for Durex in Europe and China boosts sales at consumer goods giant Reckitt
Shares in the FTSE 100 firm, which also owns Dettol cleaner and Nurofen painkillers, soared 10 per cent, or 502p, to 5542p yesterday – a 17-month high.
Reckitt hiked its revenue expectations after racking up sales of nearly £7billion in the first six months of 2025, and operating profit of £1.71billion, beating analyst expectations of £1.66billion.
Sales were driven by a surge in demand in Europe and China, with its first non-latex condom achieving double-digit sales growth in France and Germany. It raised its sales growth expectations for this year to between 3 and 4 per cent from a previous forecast of 2 to 3 per cent.
It comes after Reckitt last week agreed to sell its cleaning products unit including brands such as Cillit Bang and Air Wick to US private equity firm Advent International for £3.6billion.
Reckitt, which will retain a 30 per cent stake, will refocus on its core brands, which also include Strepsils and Vanish.
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The Independent
6 hours ago
- The Independent
Stocks rocked by tariffs and weak US jobs data
The FTSE 100 sank on Friday after US President Donald Trump announced tariffs on dozens of trading partners, and weak US jobs data fuelled concerns as to the strength of the US economy. The FTSE 100 index closed down 64.23 points, 0.7%, at 9,068.58. The FTSE 250 closed 263.49 points lower, 1.2%, at 21,699.34, and the AIM All-Share closed down 4.34 points, 0.6%, at 757.16. For the week, the FTSE 100 fell 0.6%, the FTSE 250 was down 1.9% and the AIM All-Share lost 2.6%. The Bureau of Labour Statistics said nonfarm payrolls grew by 73,000 in July, shy of the FXStreet-cited consensus of 110,000. It was also short of the 147,000 initially reported for June. However, June's number was sharply revised downwards to just 14,000. What is more, May's reading was lowered to 19,000 from 144,000. June's reading now represents the weakest month for the US labour market in four-and-a-half years. The last reading that was weaker was in December 2020, when 183,000 jobs were lost, according to BLS data. The unemployment rate edged up to 4.2% in July from 4.1% in June, as expected. 'This was an unexpectedly weak report,' said Kathleen Brooks, at XTB. 'Tariffs have yet to meaningfully kick in, so the fact that job growth has been anaemic at this early stage is worrying,' she added. 'A new narrative about the US economy is emerging. It is one where the labour market is rapidly softening, where wage growth remains strong, which could pressurise corporate margins down the line, and where the US economy needs interest rate cuts,' Ms Brooks added. ING said the 'huge downward revisions to May and June' have put 'a completely different light on the health of the US economy', reigniting the prospect of imminent US rate cuts. On Wednesday, the Federal Reserve left interest rates unchanged despite two officials voting for a cut. On Friday, in similar statements outlining their dissents, Federal Reserve vice chair for supervision Michelle Bowman and governor Christopher Waller argued that the inflationary effects of Mr Trump's tariffs were temporary and that the central bank should focus on fortifying the economy to avert further economic weakening. Both Ms Bowman and Mr Waller were appointed by Mr Trump, who has repeatedly lambasted Fed chairman Jerome Powell for not cutting rates. The jobs shock added to the already downbeat market mood after Mr Trump reignited the trade war, hitting dozens of US trading partners with tariffs. Mr Trump raised tariffs on Canada to 35%, India was hit with a rate of 25% and Switzerland with 39%. The tariff rates for 92 nations range from 10% to 41%. Mexico received a reprieve with a 90-day extension, while China faces a separate deadline of August 12. However, in a minor reprieve that opens the door to further negotiations, the White House said these measures will take effect on August 7, not Friday as previously expected. Russ Mould, at AJ Bell, said investors have been 'caught off guard', having previously hoped Mr Trump would 'kick the new tariff levels down the road'. In Europe on Friday, the CAC 40 in Paris tumbled 2.9%, while the DAX 40 in Frankfurt slid 2.7%. In New York, the Dow Jones Industrial Average was down 1.4%, the S&P 500 was 1.6% lower, and the Nasdaq Composite slumped 2.1%. The US jobs data put the US dollar on the back foot while bond yields tumbled. The pound rose to 1.3247 dollars late on Friday afternoon in London, compared with 1.3230 dollars at the equities close on Thursday. The euro traded at 1.1538 dollars, higher against 1.1442 dollars. Against the yen, the dollar was trading lower at 148.12 yen compared with 150.48 yen. The yield on the US 10-year Treasury was at 4.24%, trimmed from 4.34%. The yield on the US 30-year Treasury was at 4.81%, narrowed from 4.87%. In London, pharmaceutical stocks weighed on the blue-chip FTSE 100 index after Mr Trump demanded that drug companies lower prices for American consumers. GSK fell 1.2% and AstraZeneca dipped 1.8%. 'Widespread share price declines among pharma stocks are the market's way of saying it doesn't like the prospect of Trump effectively declaring war with the sector,' said Mr Mould. Faring better were Pearson and Melrose, up 6.3% and 4.9% respectively. London-based publisher of digital and virtual learning materials Pearson raised its dividend and said it is on track to deliver guidance, expressing confidence in stronger growth in the second half of the year. Chief executive Omar Abbosh said: 'We are making rapid progress with bringing AI-powered products to market and are scaling and enhancing our enterprise business with a range of new partnerships and deals.' Aerospace engineering company Melrose said all of its end markets were growing structurally amid rapidly increasing demand in the defence sector, as it increased its dividend amid a swing to profit. The Birmingham-based company reported pre-tax profit of £379 million in the first half of 2025, swinging from a loss of £105 million. Adjusted pre-tax profit climbed 22% to £248 million from £204 million. But IAG fell 1.6% despite a strong performance in the first half of 2025, with the British Airways owner expecting 'good earnings growth and margin progression' for the full year. Brent oil was quoted lower at 69.78 dollars a barrel in London on Friday, down from 71.11 dollars late on Thursday. Gold firmed to 3,349.92 dollars an ounce against 3,292.45 dollars. The biggest risers on the FTSE 100 were Pearson, up 67.5 pence at 1,140p, Melrose Industries, up 25.2p at 537.4p, Fresnillo, up 39p at 1,439p, Unilever, up 122p at 4,530p and British American Tobacco, up 85p at 4,125p. The biggest fallers on the FTSE 100 were Intertek, down 338p at 4,602p, Weir, down 162p at 2,504p, Rentokil Initial, down 19p at 360.5p, Anglo American, down 89p at 2,059p and Barclays, down 15.3p at 356p. Monday's local corporate calendar has half-year results from shipping and offshore services provider Clarkson. Later in the week, half-year results are due from oil major BP, Guinness owner Diageo and life insurance firm Legal & General. The global economic calendar on Monday has US factory orders data.
Scotsman
9 hours ago
- Scotsman
Diageo: What investors want to hear as Johnnie Walker owner looks to bolster share price
'Shareholders will look for comments on price and volume, any impact from tariffs and also for geographic trends in the business' Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Investors will be keen to hear how Johnnie Walker owner Diageo plans to get things back on track as it battles trade tariffs and changing drinking habits. The world's largest spirits maker, which has almost 30 malt distilleries in Scotland and owns global brands such as Guinness stout, Smirnoff vodka and Captain Morgan rum, is due to post its full-year results on Tuesday, August 5. Its shares are down by nearly a quarter in the year to date and in May the group warned that it expects US trade tariffs to cost it some $150 million (£113m) annually as it launched a major cost-cutting plan. Advertisement Hide Ad Advertisement Hide Ad Analysts at investment firm AJ Bell said the shares, and expectations, have been weighed down by fears over the impact of tariffs, a change in drinking habits, especially among younger generations consuming less alcohol, and also trading down, as inflation prompts many drinkers to switch to cheaper brands. FTSE 100 spirits giant Diageo has a vast portfolio that includes Johnnie Walker whisky (above), Guinness stout and Smirnoff vodka. 'It may also be that Diageo is now paying the price for its prior 'premiumisation' strategy and witnessing a return to more normal drinking patterns as lockdowns fade into the memory and more workers return to the office,' the analysts noted. 'Shareholders will look for comments on price and volume, any impact from tariffs and also for geographic trends in the business, where Latin America in particular has continued to perform badly. Acting [interim] boss Nik Jhangiani may also offer more detailed comments on the planned 'Accelerate' turnaround programme,' they added. Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, added: 'Diageo's full-year results come hot off the heels of a solid third-quarter performance, which saw sales rise 5.9 per cent, to $4.4 billion. Although these figures were flattered by customers stocking up on booze before the expected tariffs kicked in, there are early signs that the industry's recovering from its cyclical hangover. Advertisement Hide Ad Advertisement Hide Ad 'Markets will be keeping a close eye on just how well Diageo is managing these ongoing tariff headwinds, which were expected to add around $150m in annual costs. The Johnnie Walker and Guinness maker plans to absorb half through operational efficiencies, with the rest likely passed on through price increases. 'Former CEO Debra Crew stepped down with immediate effect in mid-July, after more than two years of relatively underwhelming group performance, so investors are keen to get some updates on the search for a longer-term successor. As things stand, full-year underlying operating profits are expected to decline slightly, before returning to growth territory in the new financial year.' In May, Diageo warned that it would be impacted by a 10 per cent tariff on UK and European imports into the US, after President Donald Trump launched a raft of tariffs. It said it believed its plans would mitigate around half of the impact of these higher costs on its profit and it would work on further measures to offset the impact.
The Independent
12 hours ago
- The Independent
Global stock markets under pressure after Trump's latest tariff blow
London's blue chip share index has slumped lower amid a global stock market backlash after US President Donald Trump unleashed the latest sweeping trade tariffs. The FTSE 100 Index fell 0.6% – down 50.2 points to 9082.7 – in mid-morning trade on Friday, while European markets suffered steeper falls as the Cac 40 in France dropped 1.8% and Germany's Dax was off 1.7%. It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1% and Japan's Nikkei 225 was 0.7% down. Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7. Big exporters to the US, such as Taiwan, will be hit with steep new levies. While the latest tariffs are less harsh some of those announced on his so-called Liberation Day on April 2, it still sees many of US trading partners facing sharp rises. The pound was also lower on Friday, down 0.5% to 1.314 US dollars and 0.3% lower at 1.153 euro. Derren Nathan, head of equity research at Hargreaves Lansdown, said: 'Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the August 1 deadline came into play, with rates ranging from 10% to 41%. 'Mexico was the only reprieve of note, earning a 90-day extension to agree a deal. 'China already faces a separate deadline of August 12.' The declines saw the FTSE 100 drop below the 9,100 level, having hit record highs in recent weeks, but Mr Nathan added this was 'to be expected after climbing 4% in July'. Joshua Mahony, chief market analyst at Rostro trading group, said markets will be concerned over the impact of the tariffs and whether it will send global inflation soaring. He said: 'Part of the problem for markets is the question of who will pay for these tariffs, with the best-case scenario being that foreign businesses bear the brunt through lower margins. 'However, that is not entirely the case, with US consumers starting to feel the pinch through higher prices, while earnings from the likes of General Motors, Ford and Apple have highlighted the fact that they are expected to lose billions at the hands of Trump's tariffs.'
