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BP Investors Riding High On Elevated Oil Prices

BP-Investors-Riding-High-On-Elevated-Oil-Prices

Investors in BP have banked some strong gains on the back of the company’s strong Q3 earnings report, which saw share price soar 3.5% in morning trading. While those gains have softened as the day goes on, reported profits that are more than double those recorded over the same three months last year bode well for BP share price’s short to medium term outlook at least.

The soaring oil prices over the past year may not generally be good for our pockets with the price of petrol, plane tickets and manufactured goods all also rising as a result. However, for anyone investing online in the shares of oil companies such as BP and Shell, there is certainly a burnished silver lining. Profits are surging on oil prices up around the $80 level and share prices along with them.

Last year BP reported Q3 profits of $1.4 billion. This year they were $3.1 billion, notably ahead of analysts’ forecasts, despite the higher oil price over the period that saw average trade prices of $75 compared to $52 in 2017. Underlying profits, which exclude one-off costs, currency fluctuations and accountancy effects were $3.8 billion against predictions for $2.9 billion.

With the US-China trade war putting buyers of US-produced WTI, wary of China slapping levies on it, Brent crude and oil from other parts of the world, which makes up most of BP’s trading inventory have benefitted. OPEC production cuts, new U.S sanctions on Iran, the world’s fourth largest oil producer, and ongoing mismanagement of PDVSA, the state-controlled Venezuelan oil company (the country has the world’s largest proven oil reserves) are all currently combining to put upwards pressure on oil prices.

With OPEC and Russia quietly resisting U.S. pressure to ramp up production to compensate for its sanctions on Iran, there is also little prospect that prices will drop significantly any time soon. If anything, they are expected to rise again before the end of the year.

The resulting cash flowing into BP’s coffers is not only boosting its balance sheet in the short term but is helping the company build for the future. The company recently announced its biggest acquisition in more than 20 years – a $10.5 billion deal to buy U.S. shale oil operator BHP Shale. Asset sales planned to raise between $5 billion and $6 billion, and a potential new share offering, were to fund the acquisition. However, the recent boost to BP’s profits means that will now be unnecessary with the assets sale cash instead being diverted towards paying down the company’s debt.

As well as capital gains on BP’s rising share price, investors are also profiting from rising dividends. The company increased dividends to 10.25 cents a share, from 10, in the second quarter. It was the first increase in 4 years and while it has been held steady this time, investors might expect further rewards if Q4 results maintain the current trajectory of BP’s finances.

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Budget 2018: How Will It Impact Your Investments & Personal Finances?

Budget-2018-Impact-Your-Investments-and-Personal-Finances

Yesterday’s Autumn Budget for 2018 was billed as ‘an end to austerity’ and designed to inject confidence into a pre and post-Brexit UK economy that Chancellor of the Exchequer Phillip Hammond was bullish on. A loosening of the purse strings and spending was announced with the NHS and defence the main beneficiaries. From the point of view of personal finances, the biggest changes announced were those around personal tax rates.

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Investment in UK Stock Market Booming Despite or Because of Brexit as FTSE 100 Hits New High?

UK Stock Market

Both the internationally-facing and more domestically focused FTSE 100 and FTSE 250 indices of the London Stock Exchange (LSE) hit new highs yesterday. The FTSE 100 gained 0.3% and the FTSE 250 0.41% as it marked its 25th anniversary. The respective gains mean that the largest 100 companies on the LSE by market capitalisation have shown a 25% increase in value since their post-Brexit referendum sell-off and the next 250 by market cap have gained 35%.

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U.S. Start-Up Gets Kids Investing in the Stock Market Online

Stock Market online

As the UK government steps up its efforts to encourage the population to save and invest for retirement in an attempt to head off a pensions crisis for our ageing population through attractive tax breaks and the auto-enrollment scheme one U.S. start-up has taken the ‘start investing early’ mantra to a whole new level. BusyKid, an app designed to help encourage children to learn responsibility by contributing to their household’s chores rota while earning rewards from their parents, has announced a new tie-up with online investing platform Stockpile.

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UK Stock Brokers for effective investment

Stock Brokers

Investors looking to invest their money into the stock market rely on uk stock brokers for selecting the right investment for their finances. The uk stock brokers assist investors on building a diversified portfolio. If you think that the stock market is only for the rich, it is not right. You can begin investing in the stock market even with relatively small amounts of money. You can take the assistance of uk stock brokers for the purpose.

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Online stock broker for hassle-free investment

stock broker

An online stock broker assists investors select funds, investments trusts and stocks to build a diversified portfolio. Investors can buy, hold and sell their investments through an online stock broker for ensuring optimum returns. The online stock broker also enables investors monitor the performance of their products regularly. Investors can rely on the online stock broker for selecting the best funds. Investors have the option of either selecting investments or invest in portfolios which are offered on ready-to-use basis.

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Online stock broker UK for a stress free investment

stock broker

Investors can choose from wide ranging funds, investment trusts and shares through online brokers or investing platforms under online stock broker UK. An efficient online stock broker UK platform allows investors to buy, sell and hold investments, monitor the performance of their portfolio, do research and use tax-efficient plans for their investments. The Online stock broker UK can assist investors in finding the best funds, tools to pick investments as well as ready-to-use portfolios.

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Investing for beginners – Understanding the basics

Investing for beginners

You can expect more from your money by putting some of your cash into investments. There are several options you can weigh before investing which will keep up with rising prices. In case you are new to investments, there are number of investing for beginners opportunities to explore which come with their own set of advantages and disadvantages and you can choose the one which is best for your requirements. You can begin with some of the investing for beginners options and then explore more possibilities and expand your investment base as your portfolio becomes stronger. The various assets owned by an investor are called a portfolio.

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