Monday 31 January 2011

FTSE down: DJIA up plus updates on BP and National Grid

Interestingly, the FTSE finished down albeit off its lows due to unease about the escalating situation in Egypt. But, after opening flat on the same concerns the DJIA finished up!

FTSE 100 @ 5862.94, -18.43 (-0.31%)
DJIA @ 11891.93, +68.23 (+0.58%)

BP: further updates.

Well the company just cannot stay out of the news or away from controversy can it. This time its partners, the Russian Oligarchs, that share ownership of TNK-BP with BP, have voted against the fourth quarter dividend, which effectively denies BP access to what would be a $900m share (nothing worse than a billionaire that can't see where his next billion is coming from).
This is ahead of its injunction against BP being heard in a London court tomorrow, the same day that BP issues its final results where it is widely expected to resume paying its own dividend.

With regard to the oil and gas industry, this may seem to be almost a sideshow to what is currently taking place in Egypt, where the political unrest that has unbelievably brought the country to a standstill threatens the supply of oil and gas passing through the Suez canal. In turn this has pushed the price of oil up to $100 per barrel for Brent crude.

BP @ 484.85, -1.95 (-0.4%)

National Grid to restructure US business.

Elsewhere, National Grid jumped after announcing that it would be restructuring its US operations into a regional structure with expectations of efficiency and cost savings totalling $100m to be realised in 2011-12.
The company also re-iterated its profits guidance following a strong first half momentum being carried into the second half to date.

National Grid @ 552.5, +6.5 (1.19%) 

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