Profits fall for BP in fourth quarter, DCC lifts expectations for full year

London open

The FTSE 100 is expected to open 31 points higher on Tuesday, having closed ahead 0.92% on Monday at 6,466.42.

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Fourth quarter profits at oil giant BP fell to a worse-than-expected $115m as the coronavirus epidemic battered energy demand. The company on Tuesday reported a full year loss of $5.7bn after writing down the value of oil and gas assets by $6.5bn in response to lower long-term energy prices forecasts.

Support services company DCC said on Tuesday that group operating profit for its third quarter was “strongly ahead” of the prior year. The FTSE 100 company said that, notwithstanding the disruption and uncertainty caused by the global pandemic, it recorded strong organic operating profit growth for the three months ended 31 December, while also benefiting from acquisitions completed in the prior year. It said that, assuming normal weather conditions for the rest of the financial year, it expected that the year ending 31 March would see good growth in operating profit, ahead of current market consensus expectations.

Newspaper round-up

Brexit checks on animal and food products arriving into Belfast and Larne ports have been suspended amid fears over the safety of staff, Northern Ireland’s agriculture ministry has said. The decision came after Mid and East Antrim borough council agreed on Monday night to remove 12 of its staff at Larne port with immediate effect, following an “upsurge in sinister and menacing behaviour in recent weeks”. - Guardian

More than 200,000 households could face delays to their boiler repairs during some of the coldest weeks of winter as the GMB union calls to resume its British Gas strike from Friday. The union has called on its members working as field engineers for Britain’s largest energy supplier to down tools for another five days as part of a nation-wide response to the company’s “fire and rehire” plans. - Guardian

The Governor of the Bank of England and other senior regulators showed a "lack of judgment" by asking not to be named in a report into the City watchdog’s response to the London Capital and Finance investment scandal, MPs have been told. Andrew Bailey, who led the Financial Conduct Authority until last March, was one of three executives named in a damning report last month by Dame Elizabeth Gloster into the FCA’s handling of the LCF scandal. - Telegraph

The first person convicted by a jury for manipulating Libor has accused his former employer UBS of using him as a “negotiating pawn” during the scandal and pledged to clear his name just days after finishing a five-and-a-half year spell in prison. In his first interview since his release last Friday, Tom Hayes, 41, told The Times that he “absolutely” believed he would have his conviction for Libor-rigging overturned. - The Times

Insurance firms have been accused of “dragging their heels” over Covid-19 payouts, despite a Supreme Court judgment that is expected to pave the way for payments to tens of thousands of companies. Law firms representing claimants who believe they have a valid claim on their business interruption insurance policies say there is a fear that companies could go to the wall before they receive a settlement. - The Times

US close

Wall Street stocks closed higher on Monday as market participants shook off anxiety stemming from last week's speculative retail trading mania.

At the close, the Dow Jones Industrial Average was up 0.76% at 30,211.91, while the S&P 500 was 1.61% firmer at 3,773.86 and the Nasdaq Composite saw out the session 2.55% stronger at 13,403.39.

The Dow closed 229.29 points higher on Monday, extending modest gains recorded in the final session of a volatile week for stocks.

In focus on Monday was news that ten Republican senators had pleaded with President Joe Biden to consider implementing a smaller, more scaled back Covid-19 relief package than his current $1.9trn plan.

The opposition's call came after House Speaker Nancy Pelosi stated the chamber would push to pass a budget resolution, the first step in approving the legislation through reconciliation without votes from the GOP.