Daily market update: Greggs, Associated British Foods and Nike

A new twist with the US/Iran peace talks caused ripples across the market as investors grow tired of non-stop setbacks.

Iran said it would not meet with visiting US envoys, causing equities to pull back and investors to switch to a risk-off mood.

Commodity producers weighed down the FTSE 100, although support from pharma and defence stocks helped stop the blue-chip index from falling.

Greggs

Greggs’ new chief financial officer Ben Waldron looks like a good hire. He brings valuable experience in the food sector and has qualities that suggest he is capable of being more than just a numbers man. He has held divisional CEO roles in pizzas-to-hummus maker Bakkavor, as well as previously being its CFO.

Waldron left Bakkavor in 2024 to relocate to Australia, having helped to float the business in 2017 and run the American operations during the pandemic. He has the all-important mix of financial and strategic experience.

Whether he is ever considered a potential replacement for incumbent CEO Roisin Currie in the future is anyone’s guess, but his appointment certainly looks like a meaty one.

The market wasn’t blown over as Greggs’ shares fell on the news that long-time CFO Richard Hutton would be leaving after 28 years with the company. Hutton has been part of a winning team, and investors might be worried that his exit is a negative signal, given it comes off the back of a more sluggish period for the business.

Associated British Foods

Associated British Foods’ conglomerate structure has helped to cushion the blow from a miserable showing from its agriculture arm and weaker sugar operations. The grocery and ingredients arms were resilient, and Primark has made a comeback. Normally the weak parts wouldn’t be something to worry about, but plans to spin off Primark means future setbacks in any one division could be more pronounced.

The sugar arm is a thorn in its side and ABF expects further deterioration in trading from this division. One must wonder how long ABF will persevere. If it’s in the mindset to separate the retail arm, perhaps it might also be giving serious thought to exiting sugar.

Primark’s US operations were helped by opening new stores while the UK is holding its head above water. The separation of Primark isn’t expected to happen until next year, but ABF will be keeping its fingers crossed that trading shows a big improvement by the point of separation so that Primark gets off to a decent start as a standalone listed company.

A lower oil price should help to improve consumer sentiment and potentially lead to more spending. But a lot may depend on who is appointed new prime minister and whether the public believe their policies will help to strengthen the jobs market and the economy.

Nike

Nike beat earnings estimates for the twelfth quarter in a row, helped by a tariff refund. Investors looked through the top line numbers and judged the company on the underlying performance which was less exciting.

Refreshingly, Nike isn’t trying to pull the wool over investors’ eyes. Chief executive Elliott Hill said on the conference call that the company isn’t ‘living up to our full potential’ and that there is a lot more work to be done. Investors weren’t happy, with the shares down 2.5% in pre-market trading.