TUI narrows quarterly loss, Barton steps out from Next

London open

The FTSE 100 is expected to open 17 points lower on Tuesday, after closing up 0.28% at 7,278.92 on Monday.

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Anglo American said its Kumba Iron Ore operation would report underlying earnings of $438m for the year ended 31 December 2016 compared with $238m a year earlier. The operation was put up for sale last year as part of a restructuring.

TUI’s first quarter loss narrowed and revenue grew as the German travel firm aims to become an integrated tourism business based on own hotel cruise brands. The FTSE 100 company plans to make further disposals as part of its growth strategy, as on Monday TUI announced it would sell Travelopia, its portfolio of specialist travel brands to KKR for around £325m, and is talks with Etihad for the sale of TUIFly.

Retailer Next has announced that John Barton will be retiring as non-executive chairman and stepping down from the board on 1 August, to be succeeded by Michael Roney, the former chief executive of Bunzl. Barton, who became a member of the board in 2002, was appointed deputy chairman in 2004 and chairman in 2006. The company said he has made “an outstanding contribution” over the last 15 years and “his leadership, experience and wise counsel have been tremendously valuable over that time”.

Productivity-enhancing instrumentation and controls company Spectris announced its full year results for the 12 months to 31 December on Tuesday, with 13% growth in reported sales to £1.35bn, though sales growth was only 1% at constant exchange rates, with a 2% like-for-like sales decline. The FTSE 250 firm’s adjusted operating profit improved 11% to £200.8m, though currency again had a major influence, with operating profit down 2% at constant exchange rates and off 6% on a like-for-like basis. Spectris’ board confirmed a 5% increase in the full-year dividend to 52p.

Newspaper round-up

BAE Systems is poised to confirm Charles Woodburn as its new chief executive in a widely anticipated move that marks a generational shift at the defence giant. Mr Woodburn, 45, who joined BAE Systems last year as its chief operating officer, has long been viewed as the heir apparent to Mr King, who has led the company since 2008. - Telegraph

Smaller lenders are circling Co-operative Bank looking to pick up bargains as it emerged that the stricken lender could have to raise almost £1bn in order to bolster its finances. OneSavings Bank and buy-to-let lender Paragon are interested in parts of the Co-op, but with Co-op seeking a buyer for all of its business, potential buyers could include Clydesdale, Banco Sabadell, Santander or private equity firms such as Cerberus. - The Times

The US national security advisor, Michael Flynn, resigned late on Monday night amid a flow of intelligence leaks that he had secretly discussed sanctions with the Russian ambassador to Washington and then tried to cover up the conversations. The resignation, with the Trump era less than four weeks old, is the latest and most dramatic convulsion in the most chaotic start to an administration in modern US history. - Guardian

A London council has signed a 15-year contract with a property developer to build housing in what is thought to be one of the first deals of its kind. Hammersmith and Fulham council is attempting to tackle the housing crisis by signing a 50-50 joint venture with Stanhope as councils try to build affordable housing for residents. - The Times

Toshiba is expected to confirm that it is withdrawing from new nuclear projects outside Japan, dealing a blow to plans for a new power station in the UK. The Japanese company has been reviewing its investment in overseas nuclear projects and is expected to make an announcement on Tuesday. - Guardian

US close

US equity markets ended in the black on Monday, with indices hitting record highs as investor sentiment continued to be buoyed by Donald Trump’s tax-cut promises.

The Dow Jones Industrial Average ended up 0.7% to 20,412.16, the S&P 500 rose 0.5% to 2,328.25 and the Nasdaq added 0.5% to 5,736.96.

Meanwhile, oil prices settled lower, with West Texas Intermediate down 1.8% to $52.90 a barrel and Brent crude down 2% to $55.58 as an OPEC report showing high compliance with last year’s production cut deal was overshadowed by rising US crude output.

Baker Hughes said in its weekly report that over the last month, US oil drillers have added the most drilling rigs since 2012, with a total of 591 rigs.

Sentiment continued to be underpinned by Trump’s pledge last week of a “phenomenal” tax announcement, as investors bet his tax reform plans and softer regulatory environment will boost economic growth and corporate profits.