It is believed that BP chief executive Tony Hayward is on the verge of leaving the group amid signs that BP is looking for a scapegoat for the disastrous oil spill in the Gulf of Mexico. It is almost inevitable that the company will look to draw a line under this situation as soon as possible and Tony Hayward is most definitely in the frame to take the lion's share of the blame as he readies himself to leave the group.
Banking shares were very volatile this afternoon ahead of the release, after the markets closed, of stress test results which have been carried out by the European Union. As it happens, there were no real issues with the results although there are some banking institutions which are "sailing very close to the wind". So what next?
UK car production increased by 26.8% in the quarter to June 2010, far better than many analysts had expected in the current economic climate. However, it was also revealed that while the year-to-date has seen a 55% increase in the production of cars in the UK a massive 71% of these were actually exported to foreign markets. So why have exports increased dramatically?
The FTSE 100 today rose by 1.7% amid signs that pressure on the UK economy may be receding and UK retail sales in June picked up by 0.7%. This is a welcome piece of good news for the UK economy and sentiment was further improved with news that car production figures were far better than analysts had expected. So what does this mean for the UK economy?
A report by the UK government has today cast doubt on the level of compensation which could be paid out to those who lost money in the Equitable Life collapse some years ago. A figure in the region of £400 million to £500 million has been suggested as a basis for compensation payments to begin next year although campaigners believe that they are due in excess of 10 times this amount!
Spanish banking giant Santander is said to be considering a flotation of its UK operations on the UK stock market. It is believed that a 20% stake in the business could be offered to investors allowing the company to raise more funds to grow the UK division amid confirmation that the group is the front runner to acquire the 318 Royal Bank of Scotland branches for sale.
Internet grocer Ocado is today trading at a discount to its float price of £1.80, having traded as low as £1.55, even after a reduction in the offer price yesterday. It would seem that a mixture of economic concern, market resistance to new issues and debate over the valuation of the company have come to the fore to create a very difficult trading environment. So what next?
Tony Hayward, the current chief executive of BP, is expected to step down from his position with the group in early October with many seeing him as a potential scapegoat for the oil disaster in the Gulf of Mexico. It is believed that the announcement with regards to his future will be postponed until the oil leak has been plugged once and for all and the company will then be able to draw a line under this situation and hopefully move on.
British Airways has this evening been pushed into turmoil with news that cabin crews have rejected the company's final offer in relation to the ongoing industrial action. While turnout for the vote was well below the recent highs, 73% of those who did vote rejected the offer by Willie Walsh and his board of directors. So what next?
Despite an apparent reluctance to give in to market conditions and investor demand for new issues, Internet grocer Ocado has this evening been forced to reduce its asking price to a range of £1.80 to £2.00 from an initial estimate of £2.00 to £2.75. This reduces the potential valuation for the business from around £1 billion to around £800 billion although it looks as though the offer will be successful at the reduced price.
