Category: Top Story

Ocado Group (LSE:OCDO) has reworked its Canadian strategy with Sobeys following a review of regional online grocery demand, resulting in the planned closure of Sobeys’ Calgary customer fulfilment centre. The decision reflects slower-than-anticipated e-commerce adoption in Alberta, while investment continues in Ontario and Quebec through Ocado-powered facilities serving Greater Toronto and Montreal under the Voilà brand.

Under the updated arrangement, Ocado will roll out enhanced technology capabilities, including its Swift Router to enable faster and same-day delivery, alongside deeper integration with third-party platforms. The partners will also continue to deploy Ocado’s AI-driven in-store fulfilment solution across 87 stores nationwide. Plans for a Vancouver fulfilment centre remain on hold as the partnership prioritises regions with stronger demand visibility.

From a financial perspective, Ocado expects to receive around £18m in compensation during the current year related to the Alberta closure, while fee revenue in FY26 is forecast to be around £7m lower as a result. The group reiterated its ambition to reach cash-flow breakeven in FY26, framing the changes as part of a broader reset of its North American operations aimed at improving capital efficiency and long-term returns.

Overall, Ocado’s outlook continues to be weighed down by ongoing losses and revenue pressure, with technical indicators pointing to a cautious near-term backdrop. While liquidity remains solid and management highlighted progress in technology deployment and partner relationships, these positives only partially offset the financial and operational challenges facing the group.

More about Ocado Group

Ocado Group is a UK-based technology and logistics company that develops automated grocery fulfilment and e-commerce solutions for food retailers. Its offering spans robotics, software, customer fulfilment centres and AI-enabled in-store picking, supporting partners such as Sobeys in Canada and Kroger in North America as they expand online grocery capabilities.

Wizz Air Holdings (LSE:WIZZ) continued to expand its network and fleet during the quarter to 31 December 2025, reporting an 11.1% increase in available seat kilometre capacity and a 12.5% rise in passenger numbers to 17.5 million. Revenue grew 10.2% year on year to €1.30bn, reflecting the higher scale of operations, although the group recorded a larger operating loss of €123.9m as cost pressures intensified.

The wider loss was driven mainly by higher depreciation, airport and navigation charges and increased fuel costs. Unit revenue edged slightly lower overall, while cost per seat rose, highlighting ongoing margin pressure. Despite this, Wizz Air further strengthened its position in Central and Eastern Europe, where market share increased to 26%, and continued to add routes and bases across the region as well as at its key Western European hubs. The airline also made further progress in shifting its fleet toward higher-density, more fuel-efficient neo aircraft, even as Pratt & Whitney GTF engine issues continued to ground part of the fleet.

Liquidity improved during the quarter, with cash reserves rising to nearly €2bn, although net debt also increased. Looking ahead, management said it expects full-year capacity growth of around 10%, with load factors and unit revenues broadly flat year on year. Total unit costs are anticipated to rise modestly, and net income is expected to be close to break-even, reflecting a balance between continued operational resilience and persistent earnings headwinds from engine disruptions and inflationary costs.

Overall, the outlook is shaped by Wizz Air’s ongoing recovery in demand and its strategic growth ambitions. Valuation appears supportive and recent corporate developments are constructive, but high leverage and operational challenges linked to engines and cost inflation remain key risks.

More about Wizz Air Holdings

Wizz Air Holdings is a European ultra-low-cost airline focused on short-haul passenger services, with Central and Eastern Europe as its core market and strategic bases in London, Rome and Milan. The group operates one of the youngest fleets in Europe, heavily weighted toward Airbus A321neo aircraft, and positions itself as one of the most emissions-efficient airlines in Europe measured by CO₂ per revenue passenger kilometre.

European equities moved mostly lower on Wednesday, giving back some recent gains after two positive sessions, as investors adopted a cautious stance ahead of the U.S. Federal Reserve’s policy decision and earnings updates from major technology groups.

Market sentiment was also dented by comments from U.S. President Donald Trump on the dollar, which were taken as a signal of weaker confidence in the U.S. economic outlook. The greenback hovered near four-year lows and was on course for its sharpest weekly drop since last April after Trump suggested he was comfortable with the currency’s recent decline.

By mid-session, France’s CAC 40 was down about 1.5%, Germany’s DAX had slipped 0.6%, and the UK’s FTSE 100 was lower by roughly 0.5%.

Despite the broader weakness, some stocks bucked the trend. Semiconductor equipment group ASML Holding (EU:ASML) surged after reporting fourth-quarter orders that came in well above analyst expectations.

Germany’s chemicals producer Wacker Chemie (TG:WCH) also climbed sharply after announcing a €300 million cost-cutting programme.

In the UK, pet care retailer Pets at Home (LSE:PETS) posted strong gains after reaffirming its full-year profit outlook.

Meanwhile, Dutch telecoms group KPN (EU:KPN) moved notably lower after forecasting year-on-year service revenue growth of just 2% to 2.5% for 2026, a cautious outlook that weighed on the shares.

European equities drifted modestly lower on Wednesday as investors worked through a busy slate of corporate results while staying cautious ahead of the U.S. Federal Reserve’s interest rate decision later in the day.

By 08:02 GMT, Germany’s DAX was down 0.1% and France’s CAC 40 had slipped 0.5%, while the UK’s FTSE 100 was broadly flat.

Fed decision keeps investors on edge

Markets across Europe were subdued as attention turned to the Federal Reserve, even after a strong overnight session on Wall Street saw the S&P 500 reach fresh record highs, supported by gains in technology and AI-linked stocks ahead of major U.S. earnings.

The Fed is widely expected to leave interest rates unchanged on Wednesday, shifting the spotlight to comments from Chair Jerome Powell for signals on when rate cuts could begin later this year. Powell’s term expires in May, and U.S. President Donald Trump said on Tuesday that he will soon announce his choice for the next Fed chair.

Trump has repeatedly urged Powell to cut rates more aggressively, criticising the pace of monetary easing. This has raised concerns among investors that a leadership change could weaken the central bank’s independence.

German consumer confidence improves

On the macro front, sentiment among German consumers showed signs of recovery. The GfK forward-looking consumer confidence index rose to -24.1 in February from -26.9 the previous month, comfortably ahead of forecasts for a smaller improvement to -26.0.

The European Central Bank meets next week and is expected to keep interest rates unchanged at 2% for a fifth straight meeting, with euro zone inflation remaining subdued and economic activity proving more resilient than previously feared. However, Austrian central bank governor Martin Kocher told the Financial Times that further appreciation of the euro could eventually force the ECB to consider another rate cut.

The single currency climbed to a more than four-year high on Tuesday, as the dollar weakened amid worries over U.S. policy direction and ongoing geopolitical tensions.

ASML in focus as earnings season accelerates

Corporate earnings were firmly in the spotlight, with reporting season moving into high gear. ASML (EU:ASML) drew particular attention after the Dutch semiconductor equipment maker topped fourth-quarter expectations and delivered optimistic guidance for 2026, citing a sharp increase in orders and continued strong demand for advanced AI-related chips.

Volvo (BIT:1VOLVB) posted a smaller-than-expected drop in fourth-quarter operating profit, though the Swedish truckmaker cut its total annual dividend by more than the market had anticipated.

Swiss contract drug manufacturer Lonza (TG:LO3) forecast 2026 sales growth of 11%–12% at constant exchange rates, with core EBITDA margins expected to expand beyond 32%, signalling solid momentum despite currency headwinds.

Germany’s Wacker Chemie (TG:WCH) reported fourth-quarter earnings below expectations and offered limited detail on its €300 million cost-reduction programme.

Late on Tuesday, LVMH (EU:MC) exceeded fourth-quarter sales forecasts, lifting hopes of a broader recovery in the luxury sector, even as margin pressures from trade tensions, a weaker dollar and elevated gold prices persisted.

In the U.S., attention later turns to results from major technology names, with Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA) and Microsoft (NASDAQ:MSFT) all set to report after the Wall Street close.

Oil steadies as U.S. storm disrupts supply

Oil prices were little changed on Wednesday after recent gains, as markets assessed the impact of a severe winter storm in the United States.

Brent crude slipped 0.1% to $66.50 a barrel, while U.S. West Texas Intermediate edged up 0.1% to $62.45. Both benchmarks jumped around 3% on Tuesday, ending last week at their highest levels since January 14.

Estimates suggest the storm knocked out as much as 2 million barrels per day of U.S. production — roughly 15% of national output — after disrupting energy infrastructure and power networks.

Card Factory (LSE:CARD) said trading for the eleven months to 31 December 2025 was in line with its revised expectations, with group revenue rising 7.3% year on year to £541.6 million. Growth was driven largely by contributions from acquired businesses and the ongoing integration of Funky Pigeon, which helped offset flat like-for-like sales across the UK store estate amid subdued high-street footfall.

Performance over the key Christmas period met management expectations despite a challenging consumer environment. Total revenue across November and December increased 4.3%, although store like-for-like sales declined 1.2%. Cost inflation was partially mitigated through the company’s ‘Simplify and Scale’ efficiency programme, supporting confidence in delivering adjusted profit before tax of between £55 million and £60 million for FY26. The group also reiterated its commitment to a progressive dividend policy and confirmed the completion of a £5 million share buyback to support employee share schemes.

From an investment perspective, Card Factory benefits from solid underlying financial performance and an attractive valuation profile, with a low earnings multiple and a high dividend yield. These positives are counterbalanced by very weak technical indicators, with the share price trading well below major moving averages and momentum signals remaining firmly bearish, suggesting near-term caution.

More about Card Factory

Card Factory plc is the UK’s leading specialist retailer of greeting cards, gifts and celebration products, operating an extensive high-street store network alongside growing digital and international operations. The group has expanded through partnerships and acquisitions, including the online brand Funky Pigeon and businesses in North America and the Republic of Ireland, while maintaining a value-focused proposition aimed at budget-conscious consumers.

Fresnillo (LSE:FRES) delivered a solid operational performance in 2025, with attributable gold production of 600.3 thousand ounces, exceeding full-year guidance despite a 5% decline compared with the prior year. Attributable silver production, including volumes from the now-concluded Silverstream, fell 13.5% year on year to 48.7 million ounces, broadly in line with guidance.

Fourth-quarter results were mixed. Silver, lead and zinc output increased compared with the previous quarter, but gold and silver volumes declined sharply year on year. The performance reflected lower grades and reduced ore throughput at several key operations, including Herradura, Saucito, Ciénega and San Julián. Additional factors included the cessation of mining at San Julián DOB and the discontinuation of zinc concentrate production at Ciénega.

Looking ahead, the company’s 2026 guidance points to lower expected silver and gold output than previously indicated. Management attributed this to mine plan adjustments at Fresnillo, lower grades and throughput at Ciénega, and delays to infrastructure development at Saucito. Despite the near-term reduction, Fresnillo indicated that production is expected to recover from 2027 onwards as new high-grade zones and development projects come on stream, supporting a more positive medium-term outlook.

From an investment perspective, Fresnillo’s outlook is underpinned by strong financial performance, including improved margins, low leverage and significantly stronger cash flow, alongside a supportive tone from the latest earnings update. These strengths are balanced by a technically overbought share price and a demanding valuation, with a relatively high P/E ratio reducing near-term margin of safety.

More about Fresnillo

Fresnillo plc is a London-listed precious metals mining company primarily focused on silver and gold production from operations in Mexico. The group also produces lead and zinc as by-products and is one of the world’s largest primary silver producers. Its strategy emphasises disciplined mine planning, operational efficiency and safety, supported by exposure to a favourable precious metals price environment.

Marston’s (LSE:MARS) delivered a strong trading performance over the key festive period, reporting like-for-like sales growth of 4.0% for the 17 weeks to 24 January 2026. Trading was particularly robust over Christmas and New Year, with sales up 5.6% across the five core festive dates, highlighting the continued appeal and resilience of the group’s community pub estate.

Across the full reporting period, like-for-like sales were broadly in line with the previous year but continued to outperform the wider pub and hospitality market. Momentum has also been supported by the accelerated rollout of Marston’s new pub formats, with 23 sites opened in the first quarter alone and more than 50 planned for the full year. These formats are contributing to improved margins through a more efficient operating model and tighter cost control.

The group continues to focus on driving demand through a programme of targeted events and promotions, including sports-led initiatives, entertainment partnerships and themed campaigns, with the upcoming FIFA World Cup expected to provide an additional boost. Against this backdrop, the board reiterated its confidence in delivering full-year results in line with market expectations for FY2026, while remaining on track to meet its previously outlined strategic objectives and shareholder return ambitions.

From an outlook perspective, sentiment is supported by the strength of recent trading updates and a relatively attractive valuation, which together point to potential upside. Technical indicators also suggest a positive trend in the shares. These strengths are tempered by ongoing concerns around leverage and cash flow, while the absence of a dividend and limited recent corporate actions slightly dilute the otherwise constructive outlook.

More about Marston’s

Marston’s PLC is a UK-listed hospitality group operating a nationwide estate of more than 1,300 pubs across managed, franchised, and tenanted and leased models. Employing around 9,000 people, the company focuses on community-based pubs offering food, drink, accommodation and gaming, making it one of the leading operators in the British pub sector.

Pets at Home (LSE:PETS) delivered a broadly stable third-quarter performance for the 12 weeks to 1 January 2026, with group consumer revenue rising 0.8% to £472 million. Growth was led by a 5% increase in the Vet Group, which helped offset softer conditions in retail, where consumer revenue slipped 1.1% despite positive volume trends in food and accessories and low-teens growth in online sales.

On a statutory basis, group revenue declined 1.0% to £358 million, while like-for-like sales fell 0.7%. Management said trading was in line with expectations and reiterated guidance that underlying profit before tax for FY26 should be consistent with current market consensus. The group continues to execute its retail turnaround strategy, which is centred on improving price competitiveness, refining product ranges, controlling costs and sharpening in-store execution. Initiatives underway include price reductions across more than 1,000 products, continued expansion of veterinary capacity and further growth in subscription-based services. Higher-margin subscriptions now represent around 15% of total consumer sales, providing a more resilient and predictable revenue stream.

From an investment perspective, Pets at Home benefits from solid underlying financial performance and an attractive valuation profile, supported by a high dividend yield. Ongoing share buybacks add to shareholder returns. These positives are balanced by ongoing challenges in the retail division and the lingering impact of a recent profit warning, which remain key risks to monitor.

More about Pets at Home

Pets at Home Group Plc is the UK’s leading pet care retailer, providing advice, products and veterinary services to pet owners through more than 450 pet care centres and a comprehensive online platform. Many locations include veterinary practices and grooming salons, while the group also operates a nationwide small-animal veterinary network of over 450 general practices across both in-store and standalone sites.

European equities were largely flat on Monday, with investors reluctant to take strong positions amid escalating tensions between Iran and the United States and ahead of a key U.S. Federal Reserve policy decision later in the week.

Sentiment was also weighed down by U.S. President Donald Trump’s renewed threat to impose 100% tariffs on Canada, lingering concerns about a potential U.S. government shutdown and caution ahead of major technology earnings scheduled for the coming days.

By late morning, the U.K.’s FTSE 100 index was edging up around 0.1%, while Germany’s DAX index was slightly lower and France’s CAC 40 was down about 0.1%.

Among individual stocks, German automotive and industrial components supplier Stabilus (TG:STM) jumped after reporting that first-quarter cash flow more than tripled, even though revenue declined.

Shares in Fnac Darty (EU:FNAC) also surged after the French retailer said it had received a takeover proposal from EP Group, the investment vehicle controlled by Daniel Kretinsky.

Real estate group Aroundtown (TG:AT1) posted strong gains as well, following its announcement of plans to repurchase up to €250 million of its own shares during the current year.

On the downside, Danone (EU:BN) shares fell sharply after the food group disclosed a recall of certain baby formula batches in selected markets.

Budget carrier Ryanair Holdings (LSE:0A2U) also traded lower after reporting a decline in third-quarter profit.

U.S. stock futures were little changed at the start of the week, with investors positioning for a key Federal Reserve rate decision and a heavy flow of corporate earnings. Sentiment is also being shaped by renewed tariff threats from President Donald Trump and lingering concerns tied to unrest in Minneapolis. Against this backdrop, gold climbed to another all-time high.

Futures hold near flat

U.S. equity futures hovered around the flat line on Monday as traders braced for a packed calendar that includes the Fed’s policy announcement and a wave of quarterly results.

By 03:00 ET, Dow futures were unchanged, S&P 500 futures slipped 4 points, or 0.1%, and Nasdaq 100 futures declined 30 points, or 0.1%.

Wall Street closed Friday on a mixed note, but all three major indices — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — finished the week in negative territory.

Investor sentiment was dampened late last week by cautious guidance from chipmaker Intel (NASDAQ:INTC), whose shareholder base includes AI leader Nvidia (NASDAQ:NVDA) and the U.S. government. Markets continue to question when heavy spending on artificial intelligence will translate into meaningful profit growth for companies tied to the technology.

At the same time, there were signs that geopolitical strains, which weighed heavily on equities during the previous week, may be easing. Traders also reviewed data pointing to a still-resilient U.S. economy, albeit one increasingly driven by higher-income consumers and large corporations.

Fed meeting in focus amid leadership uncertainty

Attention now turns to the Federal Reserve’s two-day policy meeting, which concludes Wednesday with a rate decision.

The central bank is widely expected to leave interest rates unchanged in a 3.5% to 3.75% range after a series of cuts late last year aimed at supporting a slowing labor market. Despite President Trump’s repeated calls for aggressive easing, analysts cite strong economic growth, low unemployment and elevated equity valuations as reasons for the Fed to pause.

Also in focus is Trump’s ongoing clash with Fed Chair Jerome Powell, which has raised questions about the central bank’s independence. Earlier this month, Powell said the Justice Department had opened a criminal investigation into him — a move he characterized as politically motivated.

Powell is set to step down as Fed chair in May, though it remains unclear whether he will remain on the policy-setting board. Trump has hinted he may already have a preferred successor, with prediction markets increasingly favoring BlackRock executive Rick Rider over former Fed Governor Kevin Warsh.

“The focus will be on President Trump’s imminent nomination for the new Fed Chair, the upcoming data, and whether that person can corral the rest of the committee into further cuts,” analysts at ING said.

Trump renews tariff warning toward Canada

Trade tensions resurfaced over the weekend as Trump warned he would impose a 100% tariff on Canada if Ottawa were to reach a trade agreement with China.

Trump targeted Canadian Prime Minister Mark Carney, who recently visited China and argued at the World Economic Forum in Davos that smaller nations must push back against economic pressure from global powers.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote, adding that “all Canadian goods and products coming into the U.S.A.” would face a 100% levy if a deal were signed.

Carney responded by saying Canada has “no intention” of pursuing a free trade agreement with China, emphasizing that Ottawa would honor its commitments under the existing agreement with the U.S. and Mexico.

“[W]e don’t think investors need to spend a lot of time worrying about Trump’s 100% Canada tariff actually coming to fruition, but the fact he continues to impetuously make these threats is gradually undermining sentiment,” analysts at Vital Knowledge noted.

Shutdown fears resurface after Minneapolis unrest

Concerns about another U.S. government shutdown have resurfaced following renewed unrest in Minneapolis, where protesters clashed with federal immigration authorities.

According to the Wall Street Journal, several Democratic senators who previously sought to avoid a shutdown after last year’s record 43-day closure are now adopting a tougher stance. The shift follows the shooting of a man by a U.S. Border Patrol officer in Minneapolis.

Some Democrats have indicated they will oppose funding for agencies overseeing U.S. Border Patrol and Immigration and Customs Enforcement, calling for tighter oversight of enforcement practices. Republicans retain a Senate majority, but not enough to pass most legislation without some Democratic support.

Gold rally extends to fresh records

Gold surged past $5,100 an ounce on Monday, extending last week’s sharp rally as investors flocked to the safe-haven asset amid ongoing geopolitical uncertainty.

The precious metal gained more than 8% last week and is up nearly 17% so far this year, driven by geopolitical risks, expectations of easier U.S. monetary policy later in 2026 and sustained demand from central banks.