1139 GMT - Diageo is set for shrinking sales and volumes at the start of its fiscal year amid a tough U.S. environment, analysts at JPMorgan write in a note. The drinks giant should recover in subsequent months, they add. The London-listed company, owner of Guinness stout and Smirnoff vodka, faces tough comparison bases for its sales over the three months through September, leaving it facing a likely 2.2% drop in volumes and a 0.7% slide in net sales, the latter to some extent supported by pricing, according to JPM's estimates. The U.S. market is likely to weigh particularly, while Asia-Pacific should offer some support to overall performance, JPM says. "The U.S. turnaround is likely to be progressive," the bank says, forecasting a swing to positive sales and volumes for the full year. Shares are up 2.8%.