Persimmon flags higher-than-expected profits, Big Yellow sees decent third quarter growth

London open

The FTSE 100 is expected to open 47 points higher on Tuesday, having closed down 0.91% at 6,855.02 on Monday.

Stocks to watch

Ashmore's assets under management grew in the $0.3bn in the past quarter as positive net inflows were counterbalanced by negative investment performance. The emerging markets-focused asset manager enjoyed $0.5bn of net inflows, with negative investment performance of $0.2bn.

Housebuilder Persimmon said it expected 2018 pre-tax profits to be modestly ahead of current market consensus, having benefited from new developments opened through the year. Total group revenues of £3.74bn were 4% higher as new housing revenues increased by 4% to £3.55bn and legal completion volumes increased by 406 new homes to 16,449 against 16,043 in 2017.

Self storage provider Big Yellow Group updated the market on its trading for the third quarter ended 31 December on Tuesday, reporting a 1.4% improvement in like-for-like closing occupancy at 82.1%. The FTSE 250 company said its like-for-like revenue for the quarter was £31.5m, ip from £29.6m a year earlier, with year-to-date revenue ahead by 7% at £93.8m. Average quarterly net achieved rent per square foot had rise 3%, to £27.24.

Newspaper round-up

Trade unions have accused the government of failing to learn lessons from the collapse of Carillion, instead pumping even more money into outsourcing companies, a year on from the firm’s high-profile demise. The lifetime value of outsourcing contracts awarded in 2017-18 “rocketed” by 53% from £62bn to £95bn in the past year, according to the GMB union, which pointed to nearly £2bn in contracts awarded to Capita and Interserve despite both issuing profit warnings. - Guardian

Four former Barclays executives have appeared at Southwark crown court and pleaded not guilty to charges brought by the Serious Fraud Office (SFO) in relation to a £12bn rescue package secured by the bank at the height of the financial crisis. The former chief executive John Varley, the ex-investment banking chief Roger Jenkins, the former head of Barclays’ wealth division Thomas Kalaris and the ex-European financial institutions head Richard Boath denied charges of conspiracy to commit fraud in relation to the 2008 capital raising. - Guardian

A new City firm attempting to revive the traditional role of corporate broker has appointed Lorna Tilbian, the former head of media at the investment bank Numis, as chairman. Ms Tilbian retired from Numis in 2017 and has built up a portfolio of non-executive jobs, including seats on the boards of Rightmove and M&C Saatchi. She joins Dowgate Capital as it seizes on the new Mifid II regulatory regime to carve out a niche as a specialist corporate broker. - Telegraph

Ophir Energy is calling on takeover suitor Medco Energi to raise its planned takeover offer or walk away from the negotiating table. The UK-listed oil company called time on talks over a possible cash offer of £340m for the company on Monday, saying that the plan “undervalues” Ophir. - Telegraph

The head of Capita has told MPs that the outsourcing company will lose “a considerable sum of money” on its Ministry of Defence contract to recruit soldiers into the British Army. Jonathan Lewis told the Commons public accounts committee yesterday that the company’s previous management had put too much emphasis on “chasing revenues” rather than setting realistic targets. - The Times

US close

US stocks closed lower on Monday following the release of weak Chinese trade figures, as investors eyed the start of earnings season.

At the close, the Dow Jones Industrial Average was 0.36% lower at 23,909.84, while the S&P 500 dropped 0.53% to 2,582.61 and the Nasdaq Composite traded 0.94% weaker at 6,905.92.

Data out ahead of the session revealed that imports in China fell 7.6% on the year in December, while exports were down 4.4%, versus expectations for 3% and 5.4% increases, respectively.

It also showed that China's trade surplus with the US hit a record high last year.

The Dow started the session 220 points lower, although it did manage to pare some of its earlier losses, as a result of the disappointing trade data from China overnight, which served to reignite fears of a global economic slowdown.

Investors were also keeping a keen eye earnings this week as JPMorgan Chase, Wells Fargo, BlackRock, Goldman Sachs and Netflix are all expected to turn in their fourth quarter results.