The Week Ahead: US election, M&S, Sainsbury’s

TL;DR

Global markets faced a challenging week, with concerns over the second wave of COVID-19 and the uncertainty surrounding the US election. Despite losses, there is hope for a fiscal stimulus package and positive corporate reporting.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 2nd of november it's been a very tough week for markets this week obviously there was the disappointment that in the u.s a fiscal stimulus package didn't happen but the main reason by far has been the second wave of kovid 19 outbreaks across the globe... Read More

Key Insights

• 😀 Global markets faced losses due to COVID-19 concerns and a lack of fiscal stimulus.
• ℹ️ The US election is a major source of uncertainty, potentially impacting market stability.
• ❓ Corporate reporting from various sectors will provide insights into company performance.
• 😘 Primark may be affected by lower footfall in city centers, offset by retail parks.
• 🤩 Marks and Spencer's performance in food versus clothing units will be key.
• 🏪 The ocado joint venture and Sainsbury's online sales and convenience stores are important factors.
• 🏆 Sainsbury's subsidiary, Argos, has been a winner during the pandemic.

Questions & Answers

Q: How did the second wave of COVID-19 outbreaks impact global markets?

The second wave of COVID-19 outbreaks in the US and Europe has caused significant economic concerns, resulting in a loss of around 4-6% in global markets. This reflects worries about potential lockdowns and restrictions impacting economic activity.

Q: What are the main concerns surrounding the US election?

The main concern is the uncertainty surrounding the US election and how it may affect market stability. Depending on the outcome and potential delays in decision-making, there might be increased volatility and uncertainty in the markets.

Q: Is there hope for a fiscal stimulus package?

There is optimism that a fiscal stimulus package might follow the US election. However, the timing and likelihood of its occurrence remain unclear. It is uncertain if the package will be implemented in 2020 or how quickly it might be rolled out.

Q: Which companies' corporate reporting should investors watch out for?

Investors should pay attention to companies like PayPal, General Motors, Alibaba, Associated British Foods (primarily for updates on Primark), Marks and Spencer (especially in terms of clothing performance and the ocado joint venture), and Sainsbury (with a focus on online sales, convenience stores, and Argos performance).

Summary & Key Takeaways

• Global markets experienced losses of around 4-6% due to the second wave of COVID-19 outbreaks in the US and Europe, causing economic worries.

• The upcoming US election is a major concern, as the outcome and potential delays may impact market stability.

• There is optimism for a fiscal stimulus package following the election, though the timing and certainty of occurrence remain unclear.

• Corporate reporting from companies like PayPal, General Motors, Alibaba, Associated British Foods, Marks and Spencer, and Sainsbury will provide insights into different sectors.