Business news live: FTSE 100 latest, Diageo reports profit drop and BP promises improvements amid shareholder pressure

The FTSE 100 has been on the rise again this morning, up 0.3 per cent – though it started even higher and has just pulled back slightly.

Among the big risers are Diageo (up 6 per cent) and miner Fresnillo (up 9 per cent) – but both pale into comparison next to Smith & Nephew.

The medical device maker is up 14.4 per cent this morning after announcing a $500m share buyback programme.

In Europe, the DAX is up 0.4 per cent and the CAC 40 in France is up 0.16 per cent.

The maker of Smirnoff, Guinness and Johnnie Walker scotch has seen profits fall, continuing a difficult year.

CEO Debra Crew left suddenly last month and no replacement has yet been named at Diageo.

A cost-cutting exercise has been extended from £500m to £625m but isn’t about job reductions, said interim CEO Nik Jhangiani.

Diageo said it expects these savings to come across the next three years through advertising and promotion efficiencies, reduced overheads and supply chain improvements.

Stronger sales of Guinness in the UK continued, despite supply issues earlier in the year which saw a shortage in some pubs.

BP’s chief executive Murray Auchincloss has pledged the oil and gas group will do “better for its investors” as pressure continues to mount.

Half-year profits have fallen by almost a third, though the most recent quarter was an improvement on the previous one.

With incoming chairman Albert Manifold starting at the company next month and assuming the role from October, Mr Auchincloss said a “thorough review” of BP’s portfolio is on the agenda and they will look to cut costs further.

The dividend was raised and a £565m buyback scheme was announced.

Mr Auchincloss added: “We are two quarters into a 12-quarter plan and are laser-focused on delivery of our four key targets – and while we should be encouraged by our early progress, we know there’s much more to do.”

Diageo is the third-worst performer, in share price terms, in 2025 to date – down a whopping 29 per cent. Its chief executive left suddenly a few weeks ago. Today, it revealed profits are down by more than a quarter (27.8 per cent). And there are further uncertainties ahead for an incoming CEO to deal with.

The Guinness maker has been on a downward curve for three years. Now a new CEO faces a big turnaround task, writes Karl Matchett.

Ahead of the markets opening shortly, a quick look back at yesterday’s success stories.

The FTSE 100 rebounded on Monday after Friday’s tariff-related sell-off, lifted by gains in Lloyds Banking Group after a less severe than forecast motor finance ruling.

The FTSE 100 index closed up 59.72 points, 0.7%, at 9,128.30. The FTSE 250 ended 167.50 points higher, 0.8%, at 21,866.84, and the AIM All-Share closed up 1.73 points, 0.2%, at 758.89.

Lloyds rose 8.4% after a more favourable outcome to the probe into motor finance than had been expected.

The UK government have announced a deal with Mexico to allow 12 businesses across England and Northern Ireland access to the pork market in the Latin American country.

Mexico’s pork consumption is growing at more than 5 per cent a year and the allowance is therefore estimated at around £19m over the first five years of the deal.

The current 20 per cent tariffs on British pork will disappear once Mexico ratifies the deal.

Those 12 companies are based across locations such as Hull, Bristol, Wrexham, Chesterfield, Ballymena, Suffolk and Antrim.

A government statement said it was the outcome of eight years of discussions between Defra, the Food Standards Agency and various industry bodies.

Energy giant BP has announced its biggest oil and gas field discovery in 25 years after a drilling off the coast of Brazil.

The company’s vice president for oil production, Gordon Birrell, said it was a “significant discovery” and the largest since 1999, when a giant gasfield in the Caspian Sea was discovered. It is expected to contain a mix of gas and oil as well as condensate, which is a liquid form of natural gas.

The size of the field in the Bumerangue prospect is more than 300 square kilometres – about three times the size of central Paris.

After steep falls on Friday, stock markets around Europe rose once more yesterday.

The FTSE 100 climbed around 0.4 per cent, led by Lloyds rising having learned they’d need to pay out a lower maximum amount than expected over the car finance mis-selling scandal.

Today the earnings season continues with spirits and beer maker Diageo, which owns Guinness, Smirnoff and other brands, reporting their latest profits.

Diageo shares are down around 29 per cent in 2025 so far and saw the unexpected exit of their CEO last month.

Good morning and welcome to our daily business news live blog.

Today as usual we’ll bring you the latest from company news, stock market updates and everything surrounding your money.

More to come on the car finance scandal compensation too no doubt.