Nov 10 - The UK's FTSE 100 slipped on Friday, as data showed that Britain's economy failed to grow in the third quarter and the beverages index took a tumble following spirits maker Diageo's profit decline warning.
The exporter-focused FTSE 100 was down 0.9% at 0932 GMT, while the mid-cap FTSE 250 dropped 2.2%, on track for the biggest one-day fall since early July. Both indexes were on track for a weekly decline. Shares of Diageo moved 13.6% lower after the Johnnie Walker whisky maker said it expected organic operating profit growth to decline in the first half of fiscal 2024, due to weakening sales in Latin America and the Caribbean, as well as higher trade investments.
The broader beverages index fell 11.0%, touching the lowest levels since March 2021 and was on track for its biggest one-day decline in over 36 years. Meanwhile, data showed the British economic output failed to grow in the July-to-September period, but at least managed to avoid the start of a recession."Bringing down inflation remains the government and the Bank of England's key priority, even as it comes at the expense of economic growth," said Victoria Scholar, head of investment at interactive investor.Prices of most nonferrous metals fell after hawkish comments by the U.S.