BP profits decline 20% in first quarter
London Open
Traders in the City of London predicted the FTSE would open 12 points lower after
Stocks to watch
BP has posted a first-quarter underlying profit decline of 20% on an annualised basis, though the figure was 15% higher on the previous quarter. The oil giant's profit for the last quarter came in at $2.6bn compared with $3.2bn for the same period in 2014, and $2.2bn for the fourth quarter of 2014. A quarterly dividend of 10 cents per share, was flat as the CEO Bob Dudley said "we are resetting and rebalancing BP to meet the challenges of a possible period of sustained lower prices."
Annual results from Costa Cofee and Premier Inn owner Whitbread showed revenue rose 13.7% to £2.61bn and underlying profits before tax by 18.5% to £488.1m. The FTSE 100 group, which also announced that chief executive Andy Harrison will retire by the end of the financial year next February, served up an 19.4% increase in earnings to 213.67p per share.
Fund management group Henderson saw record net inflows of £3.6bn in the first three months of the year, which contributed to a 10% rise in assets under management to reach £89.4bn. Andrew Formica, chief executive of Henderson, said: “Evolving client needs have driven us to develop a broad range of investment capabilities over the last few years which has enabled us to deliver market share gains in all of our major markets.”
In the press
Apple, the world’s most valuable public company delighted investors last night — and became worth even more in the process — with a 27% jump in second-quarter revenue to $58bn and a promise to return another $70bn to shareholders. Apple far exceeded Wall Street forecasts with a quarterly net profit of $13.6bn, fuelled by record sales of the iPhone and Mac and a record performance from its App Store in the three months to the end of March. - The Times
Europe will remain dependent on Russian gas for years to come, energy giant Centrica has warned, dismissing suggestions the EU can replace it with other sources as "unrealistic". European leaders have scrambled to try to cut reliance on imports from Vladimir Putin's Russia since the Ukraine crisis escalated last year, with Ed Davey, the energy secretary, suggesting loft insulation and wind farms were needed to "take on the Kremlin". – The Daily Telegraph
One of Alliance Trust’s biggest shareholders has applied pressure on the board to cut costs and improve the share price only one day before a crunch annual meeting that could dictate the future of the 127-year-old investment trust. Axa Investment Managers, a top ten investor in Alliance Trust, has demanded that the board reform its practices irrespective of the outcome of a key vote at the meeting, which pitches the trust against Elliott Advisers, its largest shareholder. – The Times
US close
US stocks closed lower overnight, reversing from the Nasdaq Composite and S&P 500's record highs on Friday ahead of Tuesday's Federal Reserve policy meeting.
The Dow Jones Industrial Average closed 41.77 points lower at 18,038, while the S&P 500 declined 8.76 points to 2,109 and the Nasdaq lost 31.84 points, closing at 5,060.
Corporate earnings, which have generally been better than expected, remained in focus as investors looked to Apple's results, set to be published after the closing bell.