UK stocks fall after GDP data; Diageo tumbles to near 3-year low

LONDON: London stocks sagged on Friday, with beverage maker Diageo weighing on the FTSE 100 after delivering a grim forecast, while economic data signalling that the British economy failed to grow in the third quarter further clouded risk sentiment.

Diageo sank 12.2% to a near-three year low after the Johnnie Walker whisky maker said it expected first-half operating profit growth to drop due to “materially weaker performance” in Latin America and the Caribbean. The beverages index tanked 11.3%, its worst day since October 1987.Broadly, the benchmark FTSE 100 slid 1.3%, while the mid-cap FTSE 250 dropped 1.0%. Adding to the gloom, data showed Britain’s stagnating economy failed to grow in the July-to-September period - but at least managed to avoid the start of a recession.