Water stocks, sports brands & Baille Gifford: The Companies and Markets Show

Water utilities face significant regulatory pressure following Ofwat’s draft determination, which limits bill increases and demands infrastructure investment, leaving companies like Thames Water in a precarious financial position. Meanwhile, the sportswear industry is undergoing a shift as established giants Nike and Adidas contend with rising competition from niche brands like On and Hoka, which have successfully captured market share through innovation and performance-focused marketing. In the investment trust sector, Baillie Gifford-managed funds such as Monks and Edinburgh Worldwide are recalibrating their strategies amid a volatile tech landscape. While some trusts are pivoting toward more benchmark-aligned portfolios to manage risk, others remain heavily exposed to AI-driven semiconductor themes, reflecting broader market uncertainty regarding interest rates and the potential impact of a shifting U.S. political environment on growth stocks.