Last checked at 
(Alliance News) - Stock prices in London are seen opening higher on Tuesday following a strong US close on Monday, rebounding from coronavirus-linked losses at the start of the week.
In company news, online grocer Ocado Group reported a widened loss for financial 2019, which it attributed to the devastating fire at its Andover warehouse. Food, clothing and homeware retailer Marks & Spencer poached its new chief financial officer from Irish convenience foods maker Greencore Group. Bookmaker William Hill sought to make inroads to the lucrative US sports betting market as it announced a partnership with CBS Sports.
IG futures indicate the FTSE 100 index is to open 48.12 points higher at 7,495.00. The blue-chip index closed down 19.82 points, or 0.3%, at 7,446.88 on Monday.
Ocado Group said financial 2019 was a year of "strong progress and excellent momentum" but earnings were hurt by the devastating fire that destroyed its flagship warehouse in Andover.
For the financial year ended December 1, revenue at group level rose 9.9% to GBP1.76 billion from GBP1.59 billion in financial 2018. The figure was slightly lower than the company compiled consensus estimate of GBP1.78 billion.
Retail revenue increased 10% to GBP1.62 billion from GBP1.47 billion in financial 2018.
Pretax loss widened to GBP214.5 million from GBP44.4 million. Consensus expected Ocado to report a loss of just GBP110 million.
Ocado reported exceptional charges of GBP94.1 million, of which GBP88 million associated with the Andover facility. These combined with investments in the company's technology platform, including the operating costs of Ocado's new facility in Erith, outside London, resulted in the widened loss.
The grocer said earnings before interest, tax, deprecation and amortisation was GBP43.3 million, down 28% from GBP59.5 million, reflecting the combined impacts of the Andover fire, the adoption of IFRS 16, and the costs of share schemes. This Ebitda figure was slightly higher than the consensus estimate of GBP42.0 million. IFRS 16 is an accounting rule related to leases.
Ocado added that its joint venture with high street stalwart Marks & Spencer is "progressing well".
Looking ahead, Ocado said total capital expenditure in financial 2020 is expected to be around GBP600 million, reflecting the additional capital to meet the needs of its Solutions customers' growth in the UK and internationally.
Separately, M&S said its has appointed Eoin Tonge as its new chief financial officer. Tonge joins the retailer from sandwich maker Greencore Group and will assume the role in May after Greencore's interim results.
GKSD Investment Holding confirmed it is in the preliminary stages of considering an offer for embattled private healthcare operator NMC Health. GKSD said there was no certainty that an offer will made, nor as to the terms on which any offer will be made. NMC on Monday said it also had received an approach from US private equity firm Kohlberg Kravis Roberts & Co.
William Hill announced a strategic partnership with New York-based CBS Sports, to provide official sports book and wagering data across all CBS Sports platforms and CBS television programming.
The bookmaker said the partnership will begin with initial integrations in March on the CBS Sports digital platforms, with a full rollout planned for the fantasy football season.
William Hill said it will receive exclusive rights to promote its brand across CBS Sports digital properties, including through CBS Sports Fantasy. Financial terms of the deal were not disclosed.
Anglo-German holiday operator TUI Group early Tuesday reported a sharply widened first quarter adjusted loss and tweaked its guidance range for underlying annual earnings due to the grounding of the Boeing 737 Max aircraft.
For the three months to December 31, the company's underlying loss before interest and tax widened 77% to EUR146.9 million from EUR83.1 million the year prior. This was despite revenue rising 7.7% to EUR3.85 billion from EUR3.57 billion the year before.
Annual EBIT is now expected to be between EUR850 million to EUR1.05 billion versus previous EUR950 million to EUR1.05 billion guidance range. The tweak in annual EBIT estimate was attributed by TUI to Boeing's intention to return 737 MAX to service by mid-2020 as compared with previous April return to service estimate.
The death toll from the coronavirus outbreak surged past 1,000 on Tuesday as the World Health Organisation warned infected people who have not travelled to China could be the spark for a "bigger fire".
The rise came after President Xi Jinping made a rare visit to a hospital in Beijing, wearing protective gear as he chatted with medical workers and patients.
An advance team for a WHO-led international expert mission arrived in China as the country struggles to contain a viral epidemic that has now infected more than 42,000 and reached some 25 countries.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, S&P 500 up 0.7% and Nasdaq Composite up 1.1%. The S&P 500 and Nasdaq ended at fresh record highs.
"The US equity market would have us believe that Uncle Sam is well equipped to contend with virus and that the long-term impact to domestic growth is negligible - a sentiment that will be tested when the Fed chairman appears before Congress today," said analysts at RMB.
In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong is up 1.4%. Financial markets in Japan were closed for a public holiday.
Sterling was quoted at USD1.2915 early Tuesday, lower than USD1.2922 at the London equities close on Monday.
Outgoing Bank of England Governor Mark Carney will address the Lords Economic Affairs Committee at 1535 GMT on Tuesday.
The euro traded at USD1.0909 early Tuesday, lower than USD1.0920 late Monday. Against the yen, the dollar was quoted at JPY109.91, up from JPY109.76.
European Central Bank President Christine Lagarde will be speaking at 1400 GMT on Tuesday.
Gold was quoted at USD1,568.20 an ounce early Tuesday, lower than USD1,574.80 late Monday.
Brent was trading at USD54.08 a barrel early Tuesday, higher than USD53.58 late Monday.
The economic events calendar on Tuesday has UK GDP and industrial and manufacturing data at 0930 GMT.
In addition, investor attention will be on Federal Reserve Chair Jerome Powell's take on the coronavirus fallout and the health of the US economy. The Fed chief will deliver his semi-annual testimony to Congress, appearing before the House financial services committee on Capitol Hill starting at 1500 GMT.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
