BP eyes US tax effects, Compass confirms succession plans
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The FTSE 100 index was being called almost two points higher on the first day of trading in 2018 on Tuesday, having ended the past year at a record high of 7687.77.
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BP expects changes to US tax rates to trigger a charge of about $1.5bn (£1.1bn) before benefiting the company in the long run. The oil company said lower corporate taxes under President Trump's plan require it to revalue its deferred tax assets and liabilities. BP expects the $1.5bn one-off cash charge to affect its fourth-quarter income statement.
Compass Group has confirmed the death of its chief executive, Richard Cousins, and his family in a plane accident over the weekend, and said it has moved forward the date of his succession. The appointment of the catering group's European chief operating officer, Dominic Blakemore, as chief executive was moved forward to 1 January from 1 April.
British Airways and Iberia owner IAG has swooped to buy assets and invest in Niki, a former part of the collapsed Air Berlin group. IAG's Spanish budget arm, Vueling, will buy €20m of assets from the Austrian airline and provide up to €16.5m of liquidity to Niki.
Newspaper round-up
Ministers have been advised to try to negotiate a transition period if talks with the EU end without a deal to give Britain more time to prepare for a hard Brexit. Whitehall believes that Britain could be given additional time by the EU to cushion a hard landing after March 29 next year in the event that talks break down over a future free trade agreement (FTA). - The Times
Ministers are considering a crackdown on "rip off" rail fare rises after Tory MPs warned that price hikes are heaping "financial misery" on commuters and could cost the Conservatives at the next election. Chris Grayling, the Transport Secretary, has asked officials to produce plans to peg future increases to a lower rate of inflation in a bid to ease the burden on rail passengers. - Telegraph
John McDonnell has accused the government of relying on millions of British families going further into debt in order to meet Treasury targets. The shadow chancellor said families were set to borrow £445bn by the end of the parliament and highlighted official figures showing the ratio between household debt and income had reached a five-year high, with forecasts suggesting it will hit 150% by 2022. - Guardian
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Markets in the US were closed on Monday for a public holiday.