The Week Ahead: Tesco, GVC and Nasdaq

TL;DR

The fourth quarter begins with the U.S. presidential election, rising U.S.-China trade tensions, and the impact of the pandemic on the market.

Transcript

hello i'm richard hunter head of market so welcome to our look ahead for the week commencing the 5th of october which of course means that we're now in the fourth quarter of the year with the third quarter behind us difficult september obviously a number of things going on the u.s china trades back and something that is really starting to pick up p... Read More

Key Insights

• 😮 The U.S. presidential election and rising trade tensions between the U.S. and China will drive market volatility in the coming weeks.
• 🥺 Lockdown measures have led to a resurgence in the technology sector, benefiting work-from-home stocks.
• 😀 Tesco faces challenges with increased costs and potential bad debts, while Ladbrokes and Coral owner GVC Holdings have seen growth in online gambling activities.

Questions & Answers

Q: How could President Trump's positive COVID-19 test affect the U.S. presidential election?

President Trump's positive COVID-19 test may raise concerns about his ability to continue campaigning effectively and could impact the upcoming debates and rallies. This unexpected twist adds another layer of uncertainty to the already intense election race.

Q: How have lockdown measures impacted work-from-home stocks?

Lockdown measures have resulted in a resurgence of work-from-home stocks, especially in the technology sector. The Nasdaq has been performing well due to increased demand for technology solutions that facilitate remote work, communication, and online activities.

Q: What challenges has Tesco faced during the lockdown?

While Tesco experienced higher volumes due to panic buying, additional costs such as hiring more staff have put pressure on their finances. The company is expected to provide an update on the financial impact of these challenges and potential bad debts caused by economic difficulties in the UK.

Q: How has GVC Holdings benefitted from the pandemic?

GVC Holdings, the owner of Ladbrokes and Coral, has seen a surge in online gambling activities, particularly in poker and bingo, as there were limited sporting events available for betting. Their stock has performed well, and they have a joint venture in the US with MGM, making the online gambling space an interesting sector to watch.

Summary & Key Takeaways

• The U.S. presidential election and rising U.S.-China trade tensions are expected to have a significant impact on the market in the coming weeks.

• Lockdown measures have led to a surge in work-from-home stocks, particularly in the technology sector.

• Tesco, Ladbrokes, and Coral owner GVC Holdings are releasing updates on their financial performance, with Tesco potentially facing challenges due to higher costs and bad debts.