Ocado interim losses narrow, B&M revenues rise in first quarter
London open
The FTSE 100 is expected to open 39 points lower on Tuesday, having closed down 0.85% on Monday at 8,182.96.
Stocks to watch
Online grocer and technology company Ocado on Tuesday reported narrower interim losses as revenues grew across all its divisions. Losses before tax came in at £154m from a loss of £289.5m for the 26 weeks to June 2. Core earnings more than trebled to £71.2m, while sales were up 12.6% to £1.54bn.
B&M European Value Retail reported a 2.4% increase in group revenues for its first quarter on Tuesday, driven by volume growth and a disciplined store opening program. The FTSE 100 company opened 19 new stores in the UK and two in France, with strong performance and plans for further openings throughout the year. Despite a slight decrease in like-for-like sales due to high comparatives and unseasonal weather, the firm maintained strong margins and said it was well-positioned for continued profitable growth, supported by robust logistics and strong product availability.
Precision measurement tools group Spectris is spending $630m to buy US-based Micromeritics Instrument Corporation to bolster its offering in particle characterisation for advanced materials analysis. Micromeritics is said to be a high-growth, high-margin business which will be immediately accretive to Spectris’s earnings.
Newspaper round-up
Elon Musk has said he plans to give $45m a month to a Super Pac focused on electing Donald Trump, starting in July, the Wall Street Journal has reported. The tech billionaire, who endorsed Trump two days ago, has already donated what was described as “a sizable amount” to the America Pac, though the actual amount of the donation will not be made public in election filings until 15 July, Bloomberg reported. – Guardian
Britain is taking its first steps towards forging closer trading links with the EU in meetings between the new business secretary, Jonathan Reynolds, and international counterparts in Italy. In his first overseas visit since Labour’s election landslide, Reynolds will tell a G7 meeting of trade ministers in the Italian city of Reggio Calabria that the new UK government wants to foster a “closer, more mature relationship with our friends in the EU”. – Guardian
The founder of Superdry has insisted the struggling “dad brand” will become cool again as it prepares for life after delisting from the London Stock Exchange (LSE). Julian Dunkerton, who founded the retailer in 2003, vowed to make Superdry “so much more relevant” to customers as part of a major overhaul which will end its 15-year tenure as a UK-listed company. – Telegraph
The message is clear and simple. “Let’s remember the mission — to create a world of better leaders and managers,” the founder and former chief executive of Admiral Group declares to his almost 5,000 TikTok followers. Henry Engelhardt, who launched FTSE 100 insurer in 1993 and was its chief executive for 23 years before leaving the business, starts each of his videos with the same refrain as he teaches the generally younger viewers of TikTok the secrets of successful management. – The Times
SSE and TotalEnergies have created a joint venture to install 3,000 electric vehicle charging points in the UK and the Republic of Ireland. The new ultra-fast charging points are intended to provide enough power in only six minutes for a vehicle to travel more than sixty miles. The business, named Source, will install the charging points over the next five years. To maximise their use, they will be located in 300 hubs along main roads and in urban areas. – The Times
US close
US stocks advanced on Monday, with the Dow Jones Industrial Average reaching a new record high, as investors digested somewhat dovish comments from the Federal Reserve chair and the increased likelihood of former president Donald Trump returning to office following an assassination attempt.
The Dow finished the day up 0.5% at 40,211.72, surpassing its previous all-time closing high of 40,003.59 reached on 17 May.
The S&P 500 rose 0.3% while the Nasdaq gained 0.4%.
Investors were zeroed in on Saturday's attempt on Trump's life, with many traders speculating that the incident may lead to an improved poll performance for the Republicans ahead of the November election.
The Republican National Convention also kicked off on Monday with Trump, currently leading Joe Biden in national polls, officially becoming the nominee to lead the GOP in the elections after receiving the majority of votes from national convention delegates.