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Markets
“An escalating trade war between the US and China may have provided an unhelpful backdrop to global markets yet parts of Asia have shrugged off the latest events with leading indices in China, Hong Kong and Japan rebounding on Tuesday.
“On the UK market, the FTSE dipped 0.2% in early trading to 7,286, dragged down by renewed weakness in tobacco and pharma stocks.
“Interestingly, miners had a rare day of not being hit by trade war gloom with Glencore, Antofagasta and Rio Tinto among the big metal bashers heading upwards on the stock market amid talk that Beijing will increase infrastructure investment,” says Russ Mould, Investment Director at AJ Bell.
Ocado
“Online groceries business Ocado divides market opinion. Some investors think you should ignore the fact it is still loss-making and focus on the growth potential of its Ocado Smart Platform (OSP) while others reckon you are paying far too much today for the promise of jam tomorrow.
“The company has undoubtedly made progress since a shift in strategy to concentrate on selling its OSP service, based on proprietary software and algorithms as well as robotic warehouses, to power online grocery for several international clients.
“Deals have been struck with the likes of Casino in France, Sobeys in Canada, ICA in Sweden and Kroger in the US.
“However, recent weak second quarter figures from Kroger may create some nervousness that the agreement with Ocado, which is expected to encompass up to 20 sites, might slip down the list of its strategic priorities.
“Third quarter trading for Ocado’s existing UK grocery business is in line with expectations with revenue and average orders up by double digits.
“Average order size is flat, an improvement on the half-year stage when the value of the average basket shrank, and the company’s revamped robotic warehouses in Hampshire and Bexley are performing well.”
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