BP seen registering sharp drop in third quarter profits

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The Footsie is seen starting the session up to 14 points down from Monday's closing level of 6,417.02.

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BP has reported a sharp fall in third quarter replacement cost profit to $1.819bn from $3.03bn in 2014 as the company revealed the impact of plunging oil prices over the last year.

Wealth manager St James’s Place posted a 17% rise in third-quarter net inflows to a record £1.48bn, taking funds under management to £54.5bn. Over the nine months to 30 September, net inflows were up 12% to £4.15bn. The company said retention of clients remained strong, at around 95%.

International Personal Finance delivered a satisfcatory trading performance, the company said, and was on track to deliver a result for the full-year which would be broadly in line with consensus. Credit issued jumped 8% year-on-year, with customer numbers up by 2%. Credit quality remained "good", management added, with annualised impairments as a proportion of revenues at 26.5%, within its target range.

In the press

George Osborne vowed last night to rein in the power of the Lords after he suffered a humiliating defeat over his plan to cut tax credits by £4 billion. The chancellor said that the unprecedented vote, which left his budget policy in limbo, raised constitutional issues about unelected peers that would be “dealt with” by himself and the prime minister. - The Times

Equiniti, the share registrar company that handles dividend payments for most FTSE 100 companies, has attracted enough interest to support its imminent £500m-£600m flotation, despite growing investor indifference to all but the larger share issues. The company’s advisers will price the new shares on Tuesday. Bankers expect thiem to be at the lower end of the 165p-200p price range. - The Guardian

Older homeowners withdrew a record total of £5m from their properties each day as an increasing number of retired people used their main asset as a source of income at a time of dismal savings rates. Equity release lending to homeowners over the age of 55, which allows people to use money drawn on their property without having to make monthly repayments or downsize, jumped by £68.3m to £452.6m in the three months between June and September, compared with the previous quarter. - The Times

US close

Wall Street finished Monday’s session mostly lower as investors were cautious ahead of the Federal Reserve’s decision on interest rates mid-week.

The S&P 500 fell 3.97 points to 2,071.18 and the Dow Jones Industrial Average dropped 23.65 points to 17,623.05, while the Nasdaq rose 2.84 points to 5,034.70.

The Fed is widely expected to hold off on raising rates on Wednesday amid low inflation and risks stemming from a slowdown in emerging markets.