26th Mar 2019 07:41
LONDON (Alliance News) - Stock prices in London are seen opening higher on Tuesday, rebounding from losses on Monday, as fears of a possible US recession receded.IG futures indicate the FTSE 100 index is to open up 18.12 points at 7,195.70. The blue chip index closed down 30.01 points, or 0.4%, at 7,177.58 on Monday.Ocado Group has entered into an exclusive services agreement with Coles Group to launch online grocery shopping offering to Australian customers, the two companies announced on Tuesday.Under the deal, Australia's second-largest retailer will gain access to Ocado's smart platform technology. No financial details were announced.Coles trades from 818 supermarkets, 911 liquor stores, and 712 Coles Express petrol stations across the country, generating sales in 2018 of AUD39.4 billion, about GBP22 billion. It provides online grocery retailing in Australia through Coles Online, with more than AUD1 billion in sales on an annualised basis.Plumbing and heating products supplier Ferguson reported strong half-year earnings but said trading profit for the year is to be towards the lower end of analyst expectations. For the half year ended January 31, revenue was up 8.2% to USD10.85 billion from USD10.03 billion last year, and pretax profit was up 14% to USD679 million from USD598 million.Ferguson said the exit of its Dutch plumbing and heating business and the sale of other assets generated USD255 million of cash.The FTSE 100 company reported strong US organic revenue growth of 9.7% with continued market share gains and trading profit growth.The company declared an interim dividend of 63.1 US cents, up 10.0% from 57.4 cents last year. "After a strong revenue performance in the first half our growth rate has moderated recently in line with conditions in our markets. While we still expect to generate further revenue growth in the second half, we have revised our estimates of Group organic revenue growth to between 3% to 5%. Consequently, we expect trading profit for the full year to be towards the lower end of the range of analysts' expectations," Ferguson said. United Utilities Group said the dry summer of 2018, coupled with pension and restructuring costs, will have a slight impact on its annual profit.The "exceptional" period of dry weather during the summer of 2018, alongside guaranteed minimum pension equalisation and restructuring costs, mean United Utilities will book exceptional items of GBP52 million for its financial year ending March 31.Some GBP29 million of that was recognised in interim figures.On an underlying basis, United Utilities said it expects operating growth, while revenue is also guided to grow, but no exact guidance was given for either. AIM stock Fevertree Drinks said 2018 was a significant year for the company as it consolidated its position the UK and made inroads in the US.For 2018, revenue was up 40% to GBP237.4 million from GBP170.2 million in 2017 and pretax profit rose 34% to GBP75.6 million from GBP56.4 million.Fevertree said it was encouraged by its performance in the US, with sales growth of 21% to GBP35.8 million. The UK region delivered growth of 53% with revenue of GBP134.2m from GBP87.8 million and "consolidated our position as number one mixer brand in UK retail" with 42% market share.The company declared a final dividend of 10.28 pence per share, bringing the total payout to 14.50p, up from 10.65 pence per share in 2017."2018 was a significant year for Fevertree. In the UK, we strengthened our position as the leading mixer brand in the Off-Trade. In the US, we successfully established our own operations and the business made real progress in deepening and widening its presence in multiple European regions. As the world's leading premium mixer brand with a strengthening global distribution network we are well set to drive the international opportunity as the move towards the premium long mixed drink continues to gather momentum around the world. At this early stage in the year, the group is trading in line with board expectations and we remain excited about the size of the opportunity that lies ahead," Chief Executive Tim Warrillow said. Struggling department store Debenhams said any firm offer from retailer Sports Direct International will be given "due consideration", but noted that there is no certainty that any offer will made. Debenhams said any Sports Direct offer will not address immediate funding requirements and will continue its plan to obtain required funding,Elsewhere, Morgan Stanley raised gold miner Fresnillo to Equal Weight from Underweight, and Barclays started coverage on household goods firm Reckitt Benckiser at Overweight. The Japanese Nikkei 225 index closed up 2.2%. In China, the Shanghai Composite closed down 1.5%, while the Hang Seng index in Hong Kong is down 0.2%.US Treasury yields edged up after a two-day tumble. US economic growth is slowing but is still robust, Chicago Federal Reserve Bank President Charles Evans said on Monday. He put the chances of a recession at no more than 25%.In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.1%, while the S&P 500 and Nasdaq Composite closed down 0.1%.The pound was quoted at USD1.3201, higher than USD1.3168 at the London equities close Monday.Members of Parliament have seized control of the Brexit process from UK Prime Minister Theresa May, in a move that gives them control of the Commons agenda on Wednesday. The MPs might vote on as many as seven different options for Brexit."The gridlock continues as MPs aren't in favour of May's withdrawal agreement, and unless that changes, we are in for more of the same. Last night, MPs voted in favour to hold a series of non-binding 'indicative votes' and voting will take place on Wednesday. The voting should make it clear what the House of Commons want in terms of Brexit, but there is no guarantee that the EU will agree to their proposals so it might prove to be a waste of time," said CMC Markets analsyt David Madden.In the economic calendar on Tuesday is French GDP at 0745 GMT, UK BBA mortgage approvals at 0930 GMT, and US housing starts at 1230 GMT. Later, the Redbook index is at 1255 GMT and the S&P/Case-Shiller house price index at 1300 GMT.
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