Home Money Trump cushions the spirits, but the future of Diageo still looks bright, says Alex Brummer

Trump cushions the spirits, but the future of Diageo still looks bright, says Alex Brummer

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Problems: Diageo, Johnnie Walker's home, has fought with inherited problems in Latin America, where there was exaggeration

One cannot fail to feel some sympathy for the Debra crew, one of the small bands of FTSE 100 executive women.

In parachute in the position in 2023 after the premature death of the predecessor Ivan Menezes, it has been one thing after another for the crew and diageo.

The world leader from Great Britain, Johnnie Walker’s home, has had problems. The inherited problems in Latin America, where there was exaggeration, were an early setback.

Then, during the holiday period, the crew felt the acute end of the tongue of the largest pub guard of Great Britain, Tim Martin de Wetherspoons, because Guinness’s demand was so buoyant that Diageo could not prepare enough to maintain his hostel.

In an era of craft beer, Guinness, which is still made on the shores of the Liffey in Ireland, has proven to be the best specialist beer.

This inevitably led to the speculation that Diageo aimed to get rid of a large money spinner. It is one of those suggestions of perennial analysts that throughout the decades has proven to be consistently incorrect.

Problems: Diageo, Johnnie Walker’s home, has fought with inherited problems in Latin America, where there was exaggeration

The crew can assume some responsibility for local problems, if they are inherited. But the former military intelligence officer born in Texas cannot be criticized for the mercantilism of his Commander in Chief Donald Trump.

Diageo faces challenges on multiple fronts. Their Tequila Premium Don Julio and Casamigos brands are distilled from the Blue Agave Plant, Native to Mexico.

To the north of the border in Canada, Diageo highlights the Royal Crown of Canadian whiskey. The cost for diageo in terms of lost sales, due to rates, if they are taxed in 30 days, is placed at about 160 million.

That can only be the beginning. The last time Britain fell under the gaze of American protectionism, my favorite drink was inexplicably, a single Scottish malt, which received the blow.

As the largest cash export in the United Kingdom, sent in bottles, Scotch is particularly vulnerable to commercial wars.

In the current confusing circumstances, Diageo has suspended its optimistic objective of sales growth of 5 percent to 7 percent in the medium term.

And operational profits in the first half of the current financial year fell by 4.9 percent to £ 3.1 billion.

The company is taking advantage of the current commercial pause to try to contribute more discipline to costs. The actions predictably fell and are at their lowest level since 2020.

Younger generations can be drinking less. But the demand for Guinness brands and aspirational Spirit will not go anywhere.

Lost trust

The Investment Association (AI) has been involved in a late action of the rear during the last weeks to protect its members of the unwanted care of the corporate assailant Boaz Weinstein de Saba Capital.

Therefore, it is strange to discover that among those who support the 2025 IA conference, described as “our greatest and most diverse”, it is none other than capital, described as a gold sponsor.

This is similar to the campaign against arms trade sponsored by the United Kingdom Defense and Defense Team Weapons Fair.

Until now, Saba has had a torrid time in its effort to destabilize the investment trust sector of £ 266 billion of Great Britain. His last effort to displace the meetings of Henderson’s opportunities and CQS’s natural resources, Saba nominees were rejected by shareholders in votes counted yesterday.

Weinstein’s rear door attempt to take control of seven trusts has now been rejected to the five. It seems to be ongoing for an outburst of seven nulls.

One should not imagine that this is the end of the game. Weinstein, in the last count, had taken positions in about 24 trusts.

Its objective is to benefit from the gap between the prices of the listed shares and the underlying assets, the so -called discount.

After having failed in the effort to set up an American -style proxy fight, there is the expectation that Saba could return with a tender offer for actions in some of its objectives.

The current battle may have finished, but this could be a long war of wear. It is not very fun when its ineffective trade organization allows the fox to enter Gallina’s house.

Power game

Donald Trump’s Baby Drill ‘mantra has revitalized Great Britain’s oil specialties despite the green fixation of work.

Shell has restarted production in the field of penguins in the North Sea.

BP has returned to the Middle East with the intention of spending £ 20 billion to rebuild four oil and gas fields in the Kirkuk region of Iraq. Fossil fuels are not yet low.

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