BP sees fourth quarter profits slide, copper production down at Glencore
London open
The FTSE 100 is expected to open 53 points higher on Tuesday, having closed up 0.55% at 7,326.31 on Monday.
Stocks to watch
Oil giant BP said underlying replacement cost profit for the fourth quarter and full year was $2.6bn and $10bn respectively, compared to $3.5bn and $12.7bn for the same periods a year earlier, reflecting the impact of a weaker environment. Reported profit was $19m for the fourth quarter, down from $766m in 2018 and $4bn for the full year compared with $9.3bn a year earlier, the company said on Monday.
Glencore reported a 6% fall in copper production for 2019 after the miner and commodities trader shut down its mine in the Democratic Republic of Congo. Total own-sourced copper production fell by 82,500 tonnes to 1,371,200 tonnes in the year to the end of December. About half the decline was at the company's African copper operations, where production fell 10% to 369.9 kilotonnes.
Electrocomponents announced on Tuesday that Lindsley Ruth was set to resume his role as chief executive officer from 10 February. The FTSE 250 company’s board had announced on 11 November that Ruth was taking a temporary leave of absence to receive treatment for a medical condition. “We are delighted that Lindsley is now fit and able to return to his role as chief executive officer,” said chairman Peter Johnson.
Newspaper round-up
The UK aviation industry has pledged to cut its net carbon emissions to zero by 2050 – despite still planning for 70% more flights over the next three decades. Members of the Sustainable Aviation coalition, which includes most major airlines and airports, as well as aerospace manufacturers, will sign a commitment to reach net zero by mid-century. More than a third of the proposed net reduction will be achieved through offsetting. – Guardian
Only two women applied to become the next governor of the Bank of England, despite the fact the Treasury hired a specialist headhunting firm aimed at diversifying its list of candidates. Men accounted for 21 of the 23 applicants hoping to take over from Mark Carney in the central bank’s top job, with Andrew Bailey, the outgoing boss of the City watchdog, the Financial Conduct Authority, ultimately successful. Bailey is due to start as governor on 16 March. – Guardian
The country's top white collar crime investigator has attacked "antiquated" fraud laws which stop her bringing culprits to justice. Lisa Osofsky, director of the Serious Fraud Office (SFO), called for a legal shake-up after she helped secure a record-breaking €3.6bn (£3bn) global settlement with Airbus over long-running corruption allegations. Known as a deferred prosecution agreement, the deal means the pan-European plane-maker escaped prosecution and avoided a conviction that could have seen it banned from doing business in many countries. – Telegraph
The owner of Google fell short of Wall Street’s ambitions for its fourth-quarter earnings last night, sending its shares down moments after it revealed its results after the closing bell in New York. Alphabet’s overall revenue rose by 17 per cent to $46.08 billion in the last three months of the year, its slowest fourth-quarter growth in four years and shy of the $46.94 billion forecast by analysts. Net profits rose 19 per cent from a year ago to nearly $10.7 billion. – The Times
An American no-frills airline tycoon is selling his shares in Wizz Air for up to £500 million. Indigo Partners, Bill Franke’s private equity firm, said that it was immediately selling most of its 20.6 per cent stake in the Hungarian carrier, which is worth about £624 million based on yesterday’s closing share price. The shares will be offered to institutional investors, with Barclays, Citigroup, JP Morgan and Morgan Stanley working on the sale. – The Times
US close
US stocks recorded some gains on Monday despite ongoing fears regarding the global spread of the Wuhan coronavirus.
At the close, the Dow Jones Industrial Average was up 0.51% at 28,399.81, while the S&P 500 was 0.72% firmer at 3,248.87 and the Nasdaq Composite saw out the session 1.34% stronger at 9,273.40.
The Dow closed 143.78 points higher on Monday after recording some serious losses on Friday as market participants continued to monitor and assess the potential economic impact of the fast-spreading virus.
China revealed on Sunday that the death toll had reached 361, surpassing that of the 2002-2003 SARS outbreak, while a first death from the virus was recorded out of the country in the Philippines.
Stocks in China plunged overnight on the first day back after Lunar New Year celebrations. Shanghai closed more than 7% lower, while shares in Shenzhen declined by more than 8%.
The People's Bank of China cut the funding rate by 10 basis points and injected cash into the system as part of an effort to decelerate the race to the bottom.