BP Shares Fall Despite Profits as the EU Discusses Further Russia Sanctions
July 29, 2014 8:00 am
European equity markets are subdued this morning amidst concerns about tougher sanctions potentially to be imposed by Western policy-makers on Russia. The FTSE and DAX are both up 0.1% and the CAC is down 0.2% US markets were similarly sluggish, closing only slightly higher on Monday evening with the Dow up 0.13% and the S&P up 0.03% and remaining largely unmoved by heavy IPO activity.
British oil titan BP has seen a substantial increase in Q2 profits, to $3.63 billion, a 34% rise. BP shares initially rose as a result, but plunged soon afterwards amidst indications of preparations by the EU to increase sanctions on Russia, as well as fears regarding Vladimir Putin’s response. BP currently owns around 20% of Russian oil giant Rosneft. Furthermore, yesterday’s decision by the Permanent Court of Arbitration at The Hague regarding the Yukon oilfields leaves BP open to litigation regarding subsequent Russian purchases and deals with Rosneft.
One of Scotland’s largest companies may be looking to purchase a building in London which could serve as its new corporate headquarters should Scotland vote for Independence. Standard Life is currently negotiating the purchase of 100 Cheapside, a nearly-completed 90,000 square foot development. The firm has previously warned that Scottish independence would damage the company and that would move a large amount of its business to England in the wake of a vote to separate from the UK.
In a bid to combat the process of inversion, US politicians are due to announce proposed legislation to prevent government contracts being awarded to US companies who move their tax base overseas. Earlier this week President Obama criticised US firms attempting such a move, accusing them of lacking ‘economic patriotism’. It is unclear, however, how much of an effect the ‘No Federal Contracts for Corporate Deserters Act’ would have in persuading big businesses to rethink plans to significantly lower their tax rates by moving abroad. It has been reported that Abbvie, the US company taking over Ireland’s Shire Pharmaceuticals, could gain up to $8 billion in tax breaks over the next 15 years by moving its corporate headquarters to Dublin.
In the Middle East worries have increased about the conflict between Israeli forces and Hamas as Israel’s leaders told the country to prepare for a prolonged operation.
In the Middle East, there’s an increase in worries about the conflict between Israeli forces and Hamas as Israel’s leaders said they were escalating the military campaign in Gaza and told the country to prepare for a prolonged operation. Both Hamas and Israel’s actions have been under scrutiny by international policymakers, who have condemned the actions of both sides and are demanding an immediate cease-fire. The situation in Libya has also flared up again, with fighting in the region being reported as the worst since the country’s revolution in 2011. There has also been a major fire at Libya’s biggest fuel storage centre in the capital. West Texas Intermediate crude fell 0.2% to $101.50 a barrel, while Brent crude retreated 0.1% to $107.57.
Overnight, Asian markets traded higher, touching fresh three-year highs as investors in the region drew encouragement from a rally in Chinese markets. Hong Kong’s key stock index rose almost 0.9% to its highest level in over three and half years on optimism that the economy has turned a corner.
Looking ahead, the attention is on the start of the two-day meeting by Federal Reserve policy makers, who are expected to cut bond purchases for the sixth time whilst debating the prospects of raising interest rates. Companies expected to report quarterly earnings today include American Express and Pfizer.
European equity markets are subdued this morning amidst concerns about tougher sanctions potentially to be imposed by Western policy-makers on Russia. The FTSE and DAX are both up 0.1% and the CAC is down 0.2% US markets were similarly sluggish, closing only slightly higher on Monday evening with the Dow up 0.13% and the S&P up 0.03% and remaining largely unmoved by heavy IPO activity.
British oil titan BP has seen a substantial increase in Q2 profits, to $3.63 billion, a 34% rise. BP shares initially rose as a result, but plunged soon afterwards amidst indications of preparations by the EU to increase sanctions on Russia, as well as fears regarding Vladimir Putin’s response. BP currently owns around 20% of Russian oil giant Rosneft. Furthermore, yesterday’s decision by the Permanent Court of Arbitration at The Hague regarding the Yukon oilfields leaves BP open to litigation regarding subsequent Russian purchases and deals with Rosneft.
One of Scotland’s largest companies may be looking to purchase a building in London which could serve as its new corporate headquarters should Scotland vote for Independence. Standard Life is currently negotiating the purchase of 100 Cheapside, a nearly-completed 90,000 square foot development. The firm has previously warned that Scottish independence would damage the company and that would move a large amount of its business to England in the wake of a vote to separate from the UK.
In a bid to combat the process of inversion, US politicians are due to announce proposed legislation to prevent government contracts being awarded to US companies who move their tax base overseas. Earlier this week President Obama criticised US firms attempting such a move, accusing them of lacking ‘economic patriotism’. It is unclear, however, how much of an effect the ‘No Federal Contracts for Corporate Deserters Act’ would have in persuading big businesses to rethink plans to significantly lower their tax rates by moving abroad. It has been reported that Abbvie, the US company taking over Ireland’s Shire Pharmaceuticals, could gain up to $8 billion in tax breaks over the next 15 years by moving its corporate headquarters to Dublin.
In the Middle East worries have increased about the conflict between Israeli forces and Hamas as Israel’s leaders told the country to prepare for a prolonged operation.
In the Middle East, there’s an increase in worries about the conflict between Israeli forces and Hamas as Israel’s leaders said they were escalating the military campaign in Gaza and told the country to prepare for a prolonged operation. Both Hamas and Israel’s actions have been under scrutiny by international policymakers, who have condemned the actions of both sides and are demanding an immediate cease-fire. The situation in Libya has also flared up again, with fighting in the region being reported as the worst since the country’s revolution in 2011. There has also been a major fire at Libya’s biggest fuel storage centre in the capital. West Texas Intermediate crude fell 0.2% to $101.50 a barrel, while Brent crude retreated 0.1% to $107.57.
Overnight, Asian markets traded higher, touching fresh three-year highs as investors in the region drew encouragement from a rally in Chinese markets. Hong Kong’s key stock index rose almost 0.9% to its highest level in over three and half years on optimism that the economy has turned a corner.
Looking ahead, the attention is on the start of the two-day meeting by Federal Reserve policy makers, who are expected to cut bond purchases for the sixth time whilst debating the prospects of raising interest rates. Companies expected to report quarterly earnings today include American Express and Pfizer.
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