EasyJet set to beat profit expectations, Mitie flags forecast-topping results

London open

The FTSE 100 is expected to open seven points higher on Tuesday, having closed up 0.1% on Monday at 7,879.51.

Stocks to watch

Low-cost airline easyJet on Tuesday said it expected to beat market expectations for annual profits due to high demand and strong summer bookings after slashing losses in the first six months of the current year. The company said its headline pre-tax loss was now expected to be £405 - £425m despite challenges from higher fuel prices and inflation. It forecast summer bookings to return to pre-Covid pandemic levels after ramping up crew numbers.

Outsourcing specialist Mitie said it expected operating profit to beat guidance after replacing all its Covid-related contract revenue, and announced a £50m share buyback. The company, which provides services from cleaning to building security, said it expected operating profit before other items to be at least £155m against current guidance of £145m and the actual £167m made in 2022.

Newspaper round-up

Energy suppliers have agreed to a ban on forcibly installing prepayment meters in the homes of customers over 85 and will make representatives wear body cameras as part of a new code of conduct, the Guardian can reveal. Suppliers have agreed to fresh guidelines for putting in the devices when households have run up energy debt after an outcry over agents using court-approved entry warrants to break in to install them. – Guardian

The price of staple foods such as cheddar cheese, white bread and pork sausages has soared by up to 80% in some shops over the past year, in further evidence of how inflation is hitting those on the tightest budgets the hardest. Porridge oats topped the price increase ranking among a basket of British basics measured by the consumer group Which?, with prices up by an average of 35.5% followed by skimmed milk, which was up by 33.6%, and cheddar cheese, which rose by 28.3%. – Guardian

Auditor EY plans to cut 3,000 US jobs following a failed attempt to separate its consulting and accountancy arms. The decision to reduce around 5pc of its American workforce comes after EY identified “overcapacity” in parts of the firm as it attempted to cut costs. “After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees,” an EY spokesman said. – Telegraph

Glencore’s bid for the copper miner Teck Resources has come under renewed pressure after Legal & General supported rival proposals. The asset manager has opted to vote for Teck’s pre-existing plan to spin off its coal assets rather than lend support for a $23 billion merger of Glencore with its Canadian rival. - The Times

Most logistics companies cannot consider decarbonising their lorries because of a lack of infrastructure, says the trade body representing manufacturers. Analysis by the Society of Motor Manufacturers and Traders found there is not a single dedicated electric charging or hydrogen refuelling site for heavy goods vehicles on Britain’s major roads. – The Times

US close

Wall Street stocks closed higher on Monday as market participants braced for a week full of quarterly earnings reports.

At the close, the Dow Jones Industrial Average was up 0.30% at 33,987.18, while the S&P 500 advanced 0.33% to 4,151.32 and the Nasdaq Composite saw out the session 0.28% firmer at 12,157.72.

The Dow closed 100.71 points higher on Monday, taking a bite out of losses recorded in the previous session as traders digested earnings from a number of major US banks.

Earnings will continue to dictate investor sentiment this week, with heavyweights Bank of America and Morgan Stanley publishing their latest quarterly figures on Tuesday and Wednesday, respectively, while outside of the banking sector, Netflix earnings will be on deck tomorrow, Tesla will publish its results on Wednesday, and Procter & Gamble will update on recent trading on Friday.