Over the next three weeks, almost two thirds of the UK's blue-chip companies will update the market. The second-quarter reports are likely to shed light on a wide range of topics, from the energy crunch to the cost-of-living crisis and the threat of an economic slump.
There are five things to keep an eye on.
Travel rebounded after two years of lackluster results after the summer travel chaos. A shortage of staff and a surge in demand has caused ticket prices to soar.
The company that reports earnings on Monday is one that has avoided mass cancellation. Six of the last 10 fiscal periods have seen the Irish budget carrier beat estimates. The International Consolidated Airlines Group and Air France-KLM are expected to reveal their performance at the end of the week.
There might be some turbulence. According to OAG, caps on passenger numbers at London Heathrow could result in as much as $550 million in lost revenues.
Energy majors have been boosted by soaring oil and gas prices. On July 28th, Shell is expected to post its largest profits since 2008 and on August 2nd, the same company is expected to post its biggest profits in years.
The owner of British Gas reports on the same day as the oil company. With a windfall tax already imposed by the UK government, ministers have limited options when it comes to profits there.
The global energy crunch is increasing demand for the highly-polluting fuel and is expected to boost coal sales by the London-listed miner.
People in the UK have tightened their purse strings due to the cost of living crisis. Next will be the first to show the effect on retailers. According to aDeutsche Bank analyst, the sector faces precarious times, like in a cartoon, where earnings forecasts are hanging over a cliff.
Mars Inc. has clashed with supermarkets over price hikes, as grocers look to undercut suppliers with their cheaper own brand products In the last week of July, rival consumer-goods companies updated.
Tineke Frikkee is the head of UK equity research at Waverton Investment. Sales of branded goods fell in the 12 weeks to July 10, while own brand sales rose.
The first update from Haleon will be issued on July 27. The July 28 and July 25 reports will shed light on whether families are trying to cut their telecom bill.
Good news for banks comes from rising interest rates. NatWest Group's half-year results will be released two days later on July 29th.
The Bank of England is considering a 50 basis-point hike in August. Shore Capital analyst Gary Greenwood said in a note that mortgage spreads for UK banks have narrowed and consumer credit markets may slow.
Wall Street's financial giants have enjoyed a boom in revenues due to volatility on the markets, and banks with relatively large trading operations, such asBarclays, would hope to have enjoyed a similar boom in revenues. There is a report on July 28, fromBarclays.
Insurers face inflationary pressures of their own. Direct Line Insurance Group said profits will come in lower when it reports on August 2 and 10.
Kamran Hossain of JP Morgan wrote in a note that it would be difficult to reduce claims inflation levels in the near term due to supply chain issues and economic inflation. According to the Federation of Small Businesses, more than half of small firms have seen insurance premiums rise.
The war in Ukraine and the global supply chain crunch have taken a heavy toll on the automobile industry. Carmakers will be watching for signs that supply chains are opening up. The Mercedes-Benz Group AG and Ford Motor Co report on July 27th. In the face of the cost-of-living crisis, their reports could give important updates on both supply and demand.
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