Good morning.
BP has followed in the footsteps of its Big Oil rivals with a massive increase in profits.
The FTSE 100 company said profits tripled to $8.5bn (£6.9bn) in the second quarter, the highest since 2008.
Like its rivals, BP has taken advantage of rising energy prices amid Russia’s war in Ukraine and is sharing the spoils with investors.
The company increased its dividend by 10% and announced a $3.5 billion share buyback program over the next three months. That follows the $3.8 billion it bought in the first half.
Meanwhile, household energy bills are expected to reach £3,615 in the new year, according to the latest forecasts from Cornwall Insight. That’s hundreds of pounds more than previous predictions.
5 things to start the day
1) Electric Jaguars will be tested to prevent them from disrupting appliances. The memory of a passing car turning a TV into static may be distant, but it risks returning with electric vehicles.
2) Tax burden under Sunak to remain at 70-year-old peak, even after his promise of income tax cuts, IFS warns former chancellor’s planned cuts will not undo damage from his previous incursions of national insurance and corporation tax.
3) How HSBC ended up on the front line in a new Cold War Bank attacks Chinese bid to enter its boardroom
4) The military was told to wipe LinkedIn security clearances over espionage fears. Recruiters appear to have reached out to defense personnel touting their top-secret access amid spying risk in China
5) One in three chance of New Zealand going into recession, Goldman Sachs economists warn Economy has yet to recover from Jacinda Ardern’s strict lockdowns
What happened during the night
Shares in Asia continued to fall on Wall Street this morning, with long-term US Treasury yields sinking to a four-month low, sending the US dollar lower against the yen and other currencies , as investors worried about the risk of a global recession.
Australian shares fell amid an uncertain outlook for commodity demand, which also weighed on crude oil prices, while the local dollar was near its highest against its US counterpart since from mid-June, on hopes that the central bank will offer a third consecutive half-point interest rate hike. rate hike later in the day.
Australia’s and South Korea’s equity benchmarks each suffered losses of 0.3%, while Japan’s Nikkei fell 1.17%.
Chinese blue chips fell 1.06 percent and Hong Kong’s Hang Seng lost 1.1 percent. Taiwan’s stock index fell 1.68pc.
MSCI’s broadest index of Asia-Pacific shares retreated 0.8%.
It arrives today
- Corporate: BP, Capital & Counties Properties, Coats Group, Direct Line, Domino’s Pizza, Elementis, Fresnillo, Greggs, Man Group Rotork, Synthomer, Travis Perkins (interim); Sage Group (Business Update)
- Economy: National House Price Index (UK)