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Tuesday preview: Tariffs in focus for Diageo, BP reports Q2 results

Mon 04 August 2025 09:16 | A A A

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(Sharecast News) - Full-year results from beverages group Diageo and second-quarter results from oil major BP will be in focus on Tuesday morning.

Guinness maker Diageo, whose share price has slumped by nearly 30% already this year, will report its numbers for the 12 months to 30 June, with investors keen to see how much tariffs will weigh on its bottom line since its last update.

The firm had said in May that it expects to book a $150m annualised hit from tariffs on imports into the US, though duties on EU imports have since increased from 10% to 15% since that projection was made.

For the second half, the company guided to an improvement in the organic net sales growth rate compared with the 1.0% increase registered over the first half, with the consensus estimate at 1.4%, equating to revenues of $20.2bn. Organic operating profits are likely to fall at a similar rate as the first half (-1.2%).

The recent departure of its chief executive of six years, Debra Crew - who just three weeks ago left the firm "with immediate effect, by mutual agreement" - will still be top of mind for many investors, along with news on progress with the succession programme.

BP will released its second-quarter update, following an impressive period of exploration for the company so far this year.

Just this week, the energy group announced its 10th discovery of 2025 - its largest in 25 years - at the Bumerangue prospect in the deepwater offshore Brazil.

"If BP wanted a piece of news to convince the markets of its renewed focus on hydrocarbons ahead of its second-quarter numbers later this week then its biggest oil discovery in a quarter of a century provides it," said AJ Bell investment director Russ Mould.

"With a new chair in place, BP will want to use its latest numbers to convince the market it has truly revamped its strategy and moved away from the green push which proved unpopular with a significant portion of its shareholder base."

Interim results from hotels giant IHG, precious metals miner Fresnillo, medtech group Smith & Nephew and housebuilder Travis Perkins will also be released at 0700 BST.

In terms of economic data, a host of service-sector purchasing managers' indices (PMIs) for July will be released in the UK, China, EU and US - though numbers from the UK and EU will be non-events since preliminary estimates were released two weeks ago.

Markets will get their first look at July data in China and the US: the Caixin services PMI for China is expected to ease to 50.2 for last month - its lowest since September 2023 - after registering a nine-month low of 50.6 in June; while the ISM services PMI for the US is forecast to pick up to 51.5 from 50.8.

Tuesday 5 August

FINALS

Naked Wines, Diageo

INTERIMS

International Workplace Group, Serica Energy, Keller Group, InterContinental Hotels Group, Fresnillo,

Smith & Nephew, Travis Perkins, SIG, Globaldata

Q2

BP

TRADING ANNOUNCEMENTS

Smith & Nephew

AGMs

Syncona Limited NPV, CML Microsystems, Galantas Gold Corp., Northern Venture Trust

EGMs

Henderson Far East Income Ltd.

GMs

Glencore

FINAL DIVIDEND PAYMENT DATE

Johnson Matthey

UK ECONOMIC ANNOUNCEMENTS

PMI Services (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Caixin Services PMI (China) (02:45)

HCOB Services PMI (EU) (09:00)

Producer Price Index (EU) (10:00)

Balance of Trade (US) (13:30)

ISM Services (US) (15:00)

ISM Prices Paid (US) (15:00)

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