U.S. stock benchmarks added to modest losses Monday afternoon after a report indicated that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately. Investors were awaiting a batch of key events later in the week, including a Federal Reserve meeting, the announcement of who will lead the U.S. central bank and a key employment report on Friday. The Dow Jones Industrial Average shed 77 points, or 0.3%, to 23,358, weighed by components Merck & Co. Inc. Johnson & Johnson Home Depot Inc. and 3M Co.

U.K. stocks also closed with losses for the first time in three sessions on Monday, with home builders under pressure and HSBC PLC moving lower following its earnings report. The major event this week will be Thursday’s Bank of England meeting, at which Gov. Mark Carney and his colleagues may raise the key rate by a quarter-percentage point to 0.5%. Meanwhile, Monday’s session featured ratings downgrades for the housing sector at Barclays.

HSBC quarterly earnings

Banking giant HSBC has reported pre-tax quarterly profits of $4.6bn (£3.5bn) for the three months to the end of September marking a huge 448% increase from $843m posted in the same period a year ago. At that time, earnings were hit by a one-off loss of $1.7bn from the sale of its Brazilian unit. The firm's earnings were further boosted by higher premiums from its insurance and asset management businesses in Asia.

The firm's earnings were further boosted by higher premiums from its insurance and asset management businesses in Asia. HSBC's shares were down more than 1% in late morning trading in London following the earnings update. Analysts attributed the downward move to profit-taking by investors. Since the 2008 financial crisis, HSBC has been cutting jobs and selling assets to make the group more profitable, while still making dividend payments to shareholders.

Easyjet taking over Air Berlin

EasyJet has confirmed a €40m (£35m) deal with Air Berlin to buy part of the insolvent German airline's operations, in a move that will secure 1,000 jobs. The company will buy some of Air Berlin’s assets at Berlin Tegel Airport, including landing slots as well as leases for up to 25 A320 aircraft. The UK airline said it plans to take on 1,000 German pilots and cabin crew.

Air Berlin has already agreed to sell its Austrian airline Niki to Lufthansa as well as its regional carrier LGW. The indebted Air Berlin filed for insolvency in August after its main shareholder Etihad declared it would not be providing further financial support however a loan from the German government has enabled the airline to continue operating despite the insolvency. EasyJet said that it will operate a reduced timetable at Tegel airport during the winter season but is planning for a full schedule for summer 2018.