The Week Ahead: Tesco, Greggs and Q4 outlook

TL;DR

The final week of September has been challenging for markets due to concerns over inflation, supply chain issues, the U.S. debt ceiling, and slowing growth in China.

Transcript

hello i'm richard hunter head of markets and welcome to a look ahead for the week commencing the 4th of october the final week of september and indeed the third quarter has been a very difficult one for markets indeed the u.s indices posted their worst monthly performance in september since the outbreak of the pandemic in 2020. there's a litany of ... Read More

Key Insights

• 🈷️ U.S. indices had a challenging month in September, recording their worst monthly performance since the pandemic started.
• 🐢 Concerns over inflation, supply chain issues, the U.S. debt ceiling, and slowing growth in China contribute to the unsettled market outlook.
• 💪 The FTSE 100 has displayed resilience, benefiting from weaker sterling and strong overseas earnings.
• 😄 Tesco's upcoming half-year numbers may see improved figures due to pandemic-related costs easing and strong online sales.
• 😑 Greg's has experienced stellar performance, with reinstated dividends and recovery to pre-pandemic levels.
• 🏋️ The trading update from Greg's will reveal the company's performance after the lifting of most restrictions.
• 🧑‍🏭 Overall, market conditions remain uncertain due to various factors impacting global economies.

Questions & Answers

Q: What are the main concerns impacting the market in the final quarter of the year?

The main concerns include elevated inflation, supply chain issues, the U.S. debt ceiling, and evidence of slowing growth in China. These factors create uncertainty in the market outlook.

Q: How has the FTSE 100 performed compared to other indices?

The FTSE 100 has been relatively resilient, thanks to weaker sterling and economic concerns specific to the UK. Around 70% of its earnings come from overseas, which benefits from a weaker currency.

Q: What can we expect from Tesco's half-year numbers?

Tesco has shown strong online sales figures and has been improving its distribution capabilities. The company's market share is robust, and the half-year numbers may benefit from pandemic-related costs easing.

Q: What is the current performance of Greg's and what can we expect from their trading update?

Greg's shares have had an impressive performance, with reinstated dividends and recovery to pre-pandemic levels. The trading update will shed light on how the company has fared after the lifting of most restrictions.

Summary & Key Takeaways

• September had the worst monthly performance for U.S. indices since the pandemic began, with numerous concerns affecting the global economic stage.

• The FTSE 100 has shown resilience, partly due to weak sterling and strong dollar. However, the overall outlook remains unsettled.

• Key events for the upcoming week include half-year numbers from Tesco and a third-quarter trading update from Greg’s.