We start today’s coverage of trade in London by paying respects to Sir Ivan Menezes, the CEO of Diageo, who sadly passed away after a short illness.
“This is an incredibly sad day. Ivan was undoubtedly one of the finest leaders of his generation,” said Javier Ferrán, Chairman, Diageo.
“Ivan was there at the creation of Diageo and over 25 years, shaped Diageo to become one of the best performing, most trusted and respected consumer companies. I saw first-hand his steadfast commitment to our people and to creating a culture that enabled everyone to thrive. He invested his time and energy in people at every level of the company and saw potential that others may have overlooked. This is one of many reasons why he was beloved by our employees, past and present.”
Sir Ivan was instrumental in turning Diageo into one of the world’s leading drinks companies and oversaw steady and measured increases in the share price for investors.
“Sir Ivan Menezes will be remembered for transforming Diageo’s fortunes and making it the powerhouse it is today in the spirit sector. He was greatly admired by the business community and by investors,” said AJ Bell investment director Russ Mould.
“In his 10 years as chief executive, he focused on high-end brands, recognising that consumer tastes were evolving and that people were prepared to pay a premium price for a quality product.
“Sir Ivan paid a lot of attention to culture within the business, while also making sure Diageo was a leader in the fields of sustainability, inclusivity and diversity.”
FTSE 100 Movers
The FTSE 100 was broadly flat at the time of writing on Wednesday, having reversed early losses. Poor Chinese economic data meant the FTSE 100 started the day on the back foot, but buyers gradually stepped in throughout the session.
China is reported to be considering stimulus measures to help support the economy. The hopes for action from the Chinese authorities contained sentiment on Wednesday.
CNBC reports economists predict stimulus measures will be focused on the property sector, a key driver of the wealth effect in China.
“The stimulus package could be centered on the property sector, with expansionary monetary and fiscal policies to keep up growth momentum,” Citi economists wrote in a note.
UK housebuilders were weaker after the Halifax House Pirce Index recorded the first annual decline in UK house prices since 2012. Taylor Wimpey, Persimmon, and Berkeley Group Holdings were all weaker at the time of writing.
Associated British Foods was the FTSE 100’s top riser a day after announcing a cash acquisition of National Milk Records for £48m or 215p per National Milk Records shares. National Milk Records is listed on the AQUIS Stock Exchange.