important events
BP beats profit forecasts
Oil giant BP this morning beat profit estimates despite a decline in profits.
BP's adjusted profit for the final quarter of 2023 was about $3 billion, above expectations of $2.76 billion, but lower than the $4.8 billion profit it made in the fourth quarter of 2022, when energy prices were high.
For the full year, BP's profits nearly halved from $27.6 billion in 2022 to $13.8 billion.
BP will continue to return capital to shareholders. The company announced $1.75 billion in new share buybacks, more than the $1.5 billion it did last quarter, and plans to buy back $3.5 billion worth of shares in the first half of this year. .
Big oil Q4 earnings: BP continued this trend, beating consensus (slightly) and reporting underlying profits of $2.99 billion on strong results from natural gas trading. The company accelerated the pace of share buybacks to $1.75 billion in the first quarter (up from $1.5 billion). #oat $BP
— Javier Blas (@JavierBlas) February 6, 2024
Murray Auchincloss, CEO of BP, said: The company said it is in the process of transforming from an International Oil Company (IOC) to an Integrated Energy Company (IEC).
Auchin cross I will explain:
Looking back, 2023 was a year of real momentum and solid performance in our delivery across the business.
And as we look ahead, our destination remains the same: from IOC to IEC, our focus is on increasing the value of bp. We are committed to delivering on our strategy as a simpler, more focused and higher value company, driving long-term value for our shareholders.
Looking back, 2023 was also a year like this. Auchin cross Former CEO Bernard Looney was given the top job after failing to fully report details of his relationships with colleagues.
Introduction: Retail sales slump as cost of living squeeze enters third year
good morning. Welcome to our regular coverage of business, financial markets and the global economy.
British retailers struggled throughout January as cost of living pressures continued to hit consumers.
New data from the British Retail Consortium shows spending in stores rose just 1.2% in January compared to the same month last year, a sharp slowdown from the 4.2% recorded in January 2023.
The inflation rate in December remained at 4%, indicating a decline in sales volumes.
The BRC also reported spending fell by 1.8% in the three months to January as people cut back on non-food items.
food sales Sales rose 6.3% year-on-year in the three months to January, slower than the 8% increase in January 2023.
Helen Dickinson Order of the British Empire chief executive of British Retail Consortium; say:
“Retail sales growth slowed due to easing inflation and weak consumer demand. During the January sales period, The first two weeks contributed to an increase in spending, but it did not persist throughout the month.
As the cost of living continued to rise into its third year, large purchases such as furniture, home appliances and electronics remained sluggish.
Low-income households will start paying a £299 living allowance from today. This is the last of three payments totaling up to £900 to be paid to means-tested benefit households in 2023/24.
Separate figures released by Barclays this morning confirmed that spending was low last month. Consumer card spending rose 3.1% in January from a year earlier, which was below the current headline inflation rate of 4%.
Will appear again today
The dollar is trading at a 12-week high as hopes for an early U.S. interest rate cut fade.
As a result, the pound fell last night to $1.2515, its lowest level this year.
This morning, the latest health check on the UK and Eurozone construction sector and Eurozone retail sales figures will be released.
agenda
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7am GMT: December orders from German factories.
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8:30am (GMT): Eurozone construction PMI for January
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9:30am (GMT): January UK Construction PMI
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10am GMT: Eurozone retail sales for December
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3pm GMT: RealClearMarkets/TIPP index measures U.S. economic optimism.
