London pre-open: Earnings and US GDP in focus

London's top stocks look set for a 25 point drop with investors likely to focus on the latest earnings reports and GDP data due out in the States later today. Ash clouds from Iceland and strike action caused losses to grow at British Airways during a tough first quarter, although the airline still expects to break-even for the year. Losses before tax jumped to £164m in the three months ended 30 June from £148m a year ago as revenue fell by £46m, or 2.3%, to £1.94bn. Passenger revenue dropped 3.4% on capacity down 11.2%. BA blamed "additional finance costs and the impact of non cash foreign exchange movements" for its higher pre-tax loss. Anglo American's interim results came in slightly below analyst forecasts but the mining giant said it remains confident about its prospects. The group also announced that it reinstated its dividend payments with an interim dividend of 25 cents per share. Revenue came to $15.02bn in the six months ended 30 June compared with $11.13bn last time, while EBITDA rose to $5.41bn from 2.99bn previously. Operating profit more than doubled to $4.36bn. The figures missed Panmure Gordon's forecasts. The broker predicted first half revenue of $16.15bn, EBITDA of $5.94bn and operating profit of $4.93bn. Rentokil is to merge its pest control and washrooms business to cope with 'increasing price pressures', especially in Europe. Profits in the half year to June rose from £8.2m to £30.9m, with underlying profits up 37% to £77m. Revenues fell though, by 2.3% to £1.23bn. Mondi said underlying operating profit for the first half of 2010 is expected to be considerably higher than that of the comparable period in the prior year.