ITV chief Crozier steps down, Argos pushes Sainsbury's revenue higher

London open

The FTSE 100 is expected to open seven points lower on Wednesday, after closing up 0.64% at 7,250.05 on Tuesday.

Stocks to watch

ITV chief executive Adam Crozier has stepped down from his role at the broadcaster after seven years, with no direct replacement appointed yet. Chairman Peter Bazalgette, who was appointed last year, will take on an executive role until a long-term successor for Crozier is appointed, with finance director Ian Griffiths leading the executive team for an interim period as he steps up to a new combined role that also incorporates operations.

Supermarket chain Sainsbury’s posted its preliminary results for the year to 31 March on Wednesday, with group sales including VAT up 12.7% to £29.11bn, which the board said was mainly as a result of the contribution from its acquisition Argos. The FTSE 100 firm said underlying profit before tax was down 1% at £581m, which its board said reflected its investment in the customer offer and cost inflation, offset by cost savings of £130m and a contribution from Argos of £77m.

Business at Direct Line Group continued to motor ahead during the first quarter of the year, driven by strong demand for its own brand motor insurance, with the company reiterating its guidance for key metrics in fiscal year 2017. Gross written premiums from ongoing operations were 4.2% during the first three months of the year, with growth at its Motor own brands jumping 11.2%.

Newspaper round-up

Leaving the European Union without a trade deal in place could put up to 97% of British food and drink exports at risk, according to a House of Lords report that lays bare the agricultural industry’s overwhelming reliance on local markets. As negotiations between the EU and British government appear to take a turn for worse, concerns are growing that failure to reach an exit deal could leave many industries facing steep tariff barriers in future – something government ministers hope could be offset by opportunities in other international export markets. – Guardian

It will take an extra £15bn of spending cuts or tax rises to eliminate the budget deficit by the time of the 2022 election, a leading thinktank has said as it laid bare the damaging legacy of the financial crisison UK living standards and public finances. The Institute for Fiscal Studies said that despite “two parliaments of pain”, the Conservative-led austerity drive had made little difference to public spending when measured as a share of national income and compared with pre-downturn levels. – Guardian

Apple reported an unexpected decline in iPhone sales on Tuesday night, although its profits rose slightly as it managed to sell more expensive versions of its smartphone. The American tech giant said it had sold 50.7m iPhones in the three months to the end of April, 1pc below the same period last year. – Telegraph

The boss of Barclays has become embroiled in a dispute between private equity giant KKR and his brother-in-law, costing the bank business and potentially raising further questions about the chief executive’s judgement in the wake of the whistleblowing scandal. Jes Staley, the Barclays chief, is already under pressure after it was revealed last month that he was being investigated by British regulators for breaching rules designed to protect anonymous whistleblowers. – Telegraph

Motor manufacturers could be exposed to losses of billions of euros from risky loans made by their lending businesses to help customers to buy diesel cars, analysts have warned. German groups such as BMW, Daimler and Volkswagen face losses of up to €3.5 billion each from their financial services divisions, according to a report by Sanford Bernstein, an American investment bank. – The Times

After months of wrangling, Greece and its international lenders have reached a deal that unlocks fresh financial aid for the eurozone’s weakest economy in return for new austerity measures. The agreement, which will lead to new labour reforms, further cuts to pensions and the sale of state assets, resulted from marathon negotiations in Athens between Greek finance ministry officials and bailout monitors representing the European Union and the International Monetary Fund. – The Times

US close

Stocks in the US finished higher on Tuesday, ahead of the eagerly awaited quarterly results from technology giant Apple which were due out after the close and key risk events scheduled for later in the week.

The Dow Jones Industrial Average finished up 0.17% at 20,949.89, the S&P 500 added 0.12% to 2,391.17 and the Nasdaq 100 ended 0.26% firmer at 5,644.07.

LCG analyst Jasper Lawler pointed out: "Stocks in the US opened tentatively higher.

First quarter results from Apple could be key for whether the Nasdaq can keep up its run of good form.

“Optimism for earnings growth from the FANG stocks is leading the market higher, even as the US government teeters on a shutdown.”

At the weekend, US lawmakers reached an agreement on a $1.1trn spending bill to keep the federal government ticking over until September, and now investors were looking to tomorrow's Federal Reserve policy decision and the monthly US jobs report on Friday.