Ahead of a year-end update from easyJet PLC (LSE:EZJ) on Thursday its shares are at decade lows, despite post-pandemic flights and holidays resuming.
In a third-quarter trading statement in three months ago the budget airline said it flew 95% of its planned schedule during the third quarter and that its operations in July were "much improved", though it took a £133mln hit from the travel chaos seen at various airports earlier in the summer.
This week's update will reveal how it fared during the critical summer getaway months and how bookings are looking for autumn and winter, amid the ongoing consumer cost-of-living squeeze (read more in the full easyJet preview).
Meanwhile, Ladbrokes owner Entain PLC (LSE:ENT) has seen its shares slips back towards 18-month lows in recent weeks, with similar concerns weighing, following the statement in July where management lowered revenue guidance to reflect consumers choosing to spend less of their money on bets.
However, the growth potential of the US joint venture, BetMGM, continues to be a major part of the attraction for investors, with net gaming revenue growing 65% in the first half.
Analysts said, overall, they expected management “to be more cautious on the outlook” in this third-quarter update (full Entain preview here).
A perspective on business hiring behaviour will be available from Hays PLC (LSE:HAS), the third London-listed recruiter reporting this week.
In August, the global recruitment group reported record profit growth of 128%, proposed a bumper special dividend and said it was confident it will “navigate current uncertainties”.
Fees for the year ended June jumped 32%, including 24 country records, driven by strong client and candidate confidence, management actions and continued improved fee margins.
“With macroeconomic uncertainties increasing," said chief executive Alistair Cox, the focus was turning to "leveraging the investments we have made and increasing our already strong consultant productivity.”
US inflation in focus
Inflation is the enemy at which the Federal Reserve has been aiming its unsubtle weapon, interest rate hikes.
Speculation about whether the Fed will keep firing away, going bigger and bigger, or might pivot into a more dovish approach has been pulling markets about like a rag doll in recent months.
This means US consumer price inflation will be the big macroeconomic data point of the week, in a sense.
The headline CPI rate is expected to be depressed by the effects of falls in gasoline prices, which is also likely to translate into lower airline fares, said economists at ING, though core CPI, which excludes food and fuel, is set to continue rising at a rapid pace.
A 0.4% monthly increase in prices would nudge the annual rate of core inflation up to 6.5% from 6.3%, said ING, and this unfavourable shift "should cement expectations for a fourth consecutive 75bp interest rate increase from the Federal Reserve on 2 November".
However, UBS forex watchers reckon that CPI data is unlikely to stop the Fed from its current hiking course.
In the UK the Bank of England, gilt markets and pensions funds are likely to remain in focus, with the housing market also under scrutiny as the RICS residential market survey is released, following recent warnings about a possible house price crash in the coming year.
Significant announcements on Thursday
Trading announcements: Entain PLC, easyJet PLC, Hays, Rathbones Group PLC, Norcros PLC
AGMs: Artemis Alpha Trust PLC, Feedback PLC, Galileo Resources PLC, Marechale Capital PLC, Mothercare PLC, Rank Group PLC
Ex-divs to reduce the FTSE 100 by: 2.5 points (Spirax-Sarco Engineering, Taylor Wimpey, Tesco, WPP)
Economic updates: RICS Housing Market Survey (UK), Consumer Price Index (US), Continuing Claims (US), Initial Jobless Claims (US), Crude Oil Inventories (US)
US earnings: BlackRock, Walgreens Boots Alliance, Domino’s Pizza, Delta Airlines