The ongoing recovery in food price inflation should have benefited online supermarket group Ocado PLC (LON:OCDO), which reports a third quarter trading update on Tuesday.
Deutsche Bank estimates Ocado reporting growth of 16% in its weekly orders for the 13 weeks to 27 August, driven by 1.8% growth in the average order size.
That should drive total retail sales growth of 18%, the German bank’s analysts think, an increase on the 13% growth in the first half when average order size had seen a 1.4% decline.
Back in early June, Ocado announced its first international licensing deal with an un-named regional player for software only, and any more detail, or further international deals are sure to be welcome
More of the same from Gulf Keystone
Investors would probably welcome a change of narrative from Gulf Keystone Petroleum Limited (LON:GKP) when it releases its half year results for the six months to June 30, but, the North Iraq focused oiler will likely serve more of the same.
Kurdistan oil payments and production numbers have been the key issues for the market, and that’s probably not going to change any time soon.
Nonetheless, a mid-August update revealed that GKP had US$140mln of cash on account following the latest US$12mln payment for Shaikan crude.
The question, however, will be whether the company’s efforts to invest in and grow output can actually deliver.
Fed Watch
The latest two-day Federal Open Market Committee meeting kicks off on Tuesday and a rate decision - due around 7.15pm London time on Wednesday - could see the US central bank unveil another hike in interest rates, although most commentators expect them to hold fire.
The US central bank has guided to three rate hike this year and so far it has managed just two, so another is due either at this meeting or at those in November or December.
Futures markets are putting a zero percent chance on a rate rise and a 1% chance on a rate cut this time out – so that means consensus is for no change, at 1.25%, Meanwhile the market is putting a 56% chance on the third hike occurring at the December meeting.
In a preview, Graham Spooner, investment research analyst at The Share Centre said: “There are reasons for and against. The US consumer confidence index is surging, GDP grew at a brisk pace in Q2 – 3.0% annualised – new farm payrolls are still increasing at a strong rate – these are reasons to suggest that US rates need to rise again.
“But US inflation remains subdued – 1.7% in August. The odds are that rates will stay on hold.”
Significant events expected on Tuesday September 19:
Trading update: Ocado Group PLC
Finals: Eagle Eye Solutions PLC (LON:EYE), Purecircle Limited (LON:PURE))
Interims: Anpario Plc (LON:ANP), Augean PLC (LON:AUG), Bango plc (LON:BGO), DP Eurasia NV (LON:DPEU), Escher Group Holdings PLC (LON:ESCH), Flowgroup PLC (LON:FLOW), Gulf Keystone Petroleum Ltd (LON:GKP), Gulf Marine Services PLC (LON:GMS), Judges Scientific PLC (LON:JDG), Keywords Studios PLC (LON:KWS), Maxcyte PLC (LON: MXCT), NAHL Group plc (LON:NAH), Sinclair Pharma PLC (LON:SPH), Yu Group PLC:YU.)
Economic data: US housing starts, building permits