BP plc (LON:BP) has reported an oil spill from its Clair platform in the North Sea. The leak was stopped within an hour of being identified yesterday. BP has temporarily closed down the platform while it investigates the case. BP’s shares are up 1.6% at the time of writing.
Sterling has hit a three year low versus the Euro. It is now £0.873/€1 after investors responded to the potential for a ‘hard’ Brexit following Prime Minister Theresa May’s speech at the weekend. However, weaker Sterling could be good news for international companies which report in Sterling such as GlaxoSmithKline plc (LON:GSK), Diageo plc (LON:DGE) and Vodafone Group plc (LON:VOD). GlaxoSmithKline is up 1.6%, Diageo has risen by 1.5% and Vodafone is 1% higher so far today.
Weaker Sterling also seems to have helped the UK manufacturing industry. Combined with a lower interest rate and more QE, it has risen at its fastest rate in two years. Although a weaker Sterling will make UK manufacturers more competitive abroad, higher input costs will have to be absorbed. The sector will now look ahead to the Chancellor, Philip Hammond’s, autumn statement as he today proposes to move away from a set target for balancing the UK’s deficit.
Among today’s biggest blue-chip gainers are Anglo American plc (LON:AAL) and Royal Dutch Shell Plc (LON:RDSB). Anglo American is up by 2.9% and Shell has risen by 2.6% on what is thus far a rising resources sector.
The author owns shares in GlaxoSmithKline and Shell at the time of writing.