BHP approves more funds for Samarco, Pennon hails good H1 performance

London’s FTSE 100 was set to open down nine points at 6,820.

Stocks to watch

BHP Billiton and its Brazilian joint venture partner Vale said they have approved $181m to fund remediation and compensation programs at the Samarco iron ore project after a dam burst in a year ago.

The two companies will extend a £230m line of credit to Samarco. The funding will be offset against a $1.2bn provision made in June.

Pennon continued to deliver a good performance in the first half of its financial year at both its water and waste businesses.

South West Water delivered a sector-leading return on regulatory equity of 11.7%, while its Viridor waste cycling unit was on track to hit its target for operating profits amid improved margins.

During the reporting period the firm also decided to commit £252m to an energy recovery facility at Avonmouth, thus increasing its portfolio to twelve plants.

The utility also unveiled a new retail venture for business customers with South Staffs/Cambridge Water.

In the press

Theresa May is facing a growing backlash over her flagship business reforms after leading company bosses and the Bank of England’s chief economist urged her to reverse plans on executive pay. Senior finance and corporate figures, including the BoE’s Andy Haldane and GlaxoSmithKline’s chief executive Sir Andrew Witty, have rejected two of the prime minister’s main corporate governance proposals. – Financial Times

Britons are expected to embark on a record-breaking £1.3bn online spree as Black Friday kicks off the biggest shopping weekend of the year. The US import has taken the UK by storm, with retailers launching discounts even earlier than usual this year as the battle for Christmas shoppers intensifies. Some of the high street’s biggest names, including Tesco, Argos, Currys PC World and Amazon have upped the ante: offering more discounts, spread over more days, and, in Tesco’s case, opening its largest stores at 5am. – Guardian

The average cost of a home in London is more than 14 times average earnings – the highest level on record, according to figures from property consultancy Hometrack. Oxford and Cambridge are not far behind, the company’s latest index of city prices indicates, with house prices at 13.5 and 13.6 times local earnings respectively. A lack of homes for sale combined with demand fuelled by low mortgage rates has pushed up average prices in London by 86% since 2009, according to Hometrack, to an average of £482,000. The increase is far in excess of wage growth and means prices are 14.2 times the average London wage packet of £33,720 a year – the highest multiple since 2002. – Guardian

Mike Ashley is to invite MPs to a live televised debate at Sports Direct’s Derbyshire complex in a move he hopes will draw a line under the recent “spygate” scandal.In a letter sent yesterday to Iain Wright, chairman of the business, energy and industrial strategy committee, the billionaire founder of Sports Direct said that the politicians needed to return and face the retailer’s staff, some of whom he claimed were “deeply traumatised”. – The Times

US close

US markets were closed on Thursday for Thanksgiving.