London, Jan 16, 2026, 09:17 GMT — Regular session
- Diageo shares slipped 0.7% in early London trading, following a 0.8% drop on Thursday
- Investors remain focused on potential portfolio shifts in China and the initial moves from new CEO Dave Lewis
- Broader markets steadied after traders pulled back on near-term U.S. rate-cut expectations
Diageo’s shares slipped 0.7% to 1,667.5 pence in early London trading Friday, following a 0.8% decline the previous day. The stock fluctuated between 1,658.5 and 1,671.0 pence. 1
The move is significant as Diageo has turned into a trade shaped by headlines. Investors are focused on how fast management can reduce debt amid weakening demand in key markets, and if asset sales might shoulder some of the burden.
Chief executive Sir Dave Lewis, who stepped into the role on Jan. 1, acknowledged the group faces “headwinds” but also “significant opportunities.” 2
Diageo ended Thursday at 1,678.5 pence, swinging between a high of 1,687.5 and a low of 1,650.5 during the session, according to 8 .
China continues to be a key uncertainty. Bloomberg revealed this week that Diageo is weighing options for its China holdings, possibly including a sale, and has tapped Goldman Sachs and UBS for advice, Reuters reported. Diageo declined to comment. 3
Diageo’s move to bring in Lewis last November caught RBC Capital Markets analyst James Edwardes Jones off guard—in a good way. He described the hire as a “pleasant surprise” amid the company’s efforts to stabilize growth following a downgrade to its outlook. 4
The broader picture was uneven. Asian shares gained on Friday, while the dollar hovered close to a six-week peak as traders dialed back bets on an imminent Fed rate cut. European markets opened a touch lower following a solid streak, Reuters reported. 5
Diageo’s fiscal 2026 first-quarter update showed organic net sales growth holding steady, with no increase after adjusting for currency fluctuations and acquisitions. The company flagged challenges in Chinese white spirits and a weaker consumer market in the U.S. 6
Investors remain uncertain about the timing. If the China review drags on or proceeds fall short of expectations, the balance-sheet narrative could lose momentum. A slow U.S. kickoff to 2026 would probably weigh on volumes and sustain margin pressure.
Diageo’s interim results for the six months ending Dec. 31 are set for release on Feb. 25. Investors will be looking closely for updates on disposals and the first detailed performance review under Lewis. 7
