FTSE 100 slides as stronger sterling hits export-focused firms; Burberry soars

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Jan 24 (Reuters) - Britain's FTSE 100 fell on Friday, as a jump in sterling hurt export-oriented firms, while Burberry soared after a strong U.S. holiday season helped the luxury firm beat quarterly sales expectations.

The blue-chip FTSE 100 .FTSE dropped 0.7%, but still looked on course for its fifth straight week of gains.

The benchmark hit a record high this week, as global stocks surged on signs that U.S. President Donald Trump was taking a softer stance towards tariffs against China and looking to boost the U.S. economy by lowering taxes and making big AI investments.

Sterling GBP=D3 hit a two-week high against the dollar on Friday as a lack of concrete tariff policies during Trump's first week in office hurt the dollar, and in turn weighed on shares of global companies such as Shell SHEL.L and HSBC HSBA.L.

UK-listed global miners such as Antofagasta ANTO.L, Glencore GLEN.L and Rio Tinto RIO.L climbed as copper prices jumped to their highest in more than two months on hopes of a U.S. trade deal with China.

The FTSE 250 midcap index .FTMC ended about flat.

Burberry BRBY.L shares jumped about 10% after it reported a smaller-than-expected 4% drop in quarterly comparable store sales and said it was now more likely to record a profit over its financial year.

The results boosted shares of other European luxury firms including Kering PRTP.PA and LVMH LVMH.PA.

Harry Potter publisher Bloomsbury Publishing BLPU.L rose 2.8% after renewing its supply agreement with Amazon AMZN.O.

Diageo DGE.L gained 4.3% after a report that the world's top spirits maker is exploring a potential spin-off or sale of beer brand Guinness and is reviewing its stake in LVMH's LVMH.PA. Diageo did not immediately respond to a request for comment. LVMH declined to comment.

Meanwhile, a survey showed tepid growth across British businesses picked up only slightly at the start of 2025, with employment and optimism contracting again while price pressures rose.

The survey was the latest sign of lacklustre growth and a weakening jobs market since finance minister Rachel Reeves raised payroll taxes for businesses in her budget on Oct. 30.

Traders expect an 81% chance of a 25-basis-point rate cut on Feb. 6, when the Bank of England policymakers meet next.

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