This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/10414529.stm
The article has changed 7 times. There is an RSS feed of changes available.
Version 5 | Version 6 |
---|---|
BP talks between US and Britain | BP talks between US and Britain |
(40 minutes later) | |
Britain and the US have agreed that they want a "strong and stable" BP, as the oil company faces intense pressure over the Gulf of Mexico oil leak. | Britain and the US have agreed that they want a "strong and stable" BP, as the oil company faces intense pressure over the Gulf of Mexico oil leak. |
President Barack Obama and UK Prime Minister David Cameron discussed BP's problems at the G20 summit in Canada. | President Barack Obama and UK Prime Minister David Cameron discussed BP's problems at the G20 summit in Canada. |
They agreed that BP must meet its clean-up obligations, but also that it was in both countries' interests that the company remained a viable business. | They agreed that BP must meet its clean-up obligations, but also that it was in both countries' interests that the company remained a viable business. |
BP will be hoping the talks put an end to political attacks on the company. | BP will be hoping the talks put an end to political attacks on the company. |
Officials in the US administration have criticised BP's response to the spillage, and mounted strong attacks on chief executive Tony Hayward. | Officials in the US administration have criticised BP's response to the spillage, and mounted strong attacks on chief executive Tony Hayward. |
The criticism has spooked investors, who were already worried about the mounting costs of the clean-up operation. | The criticism has spooked investors, who were already worried about the mounting costs of the clean-up operation. |
A Downing Street statement issued after the meeting between Mr Obama and Mr Cameron, said: "The leaders agreed that BP should meet its obligations to cap the leak, clean up the damage and meet legitimate compensations. | A Downing Street statement issued after the meeting between Mr Obama and Mr Cameron, said: "The leaders agreed that BP should meet its obligations to cap the leak, clean up the damage and meet legitimate compensations. |
"They also agreed that it was to both countries' advantage for BP to remain a strong and stable company." | "They also agreed that it was to both countries' advantage for BP to remain a strong and stable company." |
There was no immediate official response from Washington, though a senior US official emphasised to reporters at the summit that BP's obligations "have got to be met". | There was no immediate official response from Washington, though a senior US official emphasised to reporters at the summit that BP's obligations "have got to be met". |
Falling shares | Falling shares |
Shares in BP plunged again last week amid speculation that the company may have to seek extra funds to pay for its oil spill costs. | Shares in BP plunged again last week amid speculation that the company may have to seek extra funds to pay for its oil spill costs. |
On Friday the shares closed down more than 8% at 298.36p, hitting a 14-year low. | On Friday the shares closed down more than 8% at 298.36p, hitting a 14-year low. |
In a note to investors, trading house Nomura said pressure was growing on the company to "assure sufficient funding" to stop the spill. | In a note to investors, trading house Nomura said pressure was growing on the company to "assure sufficient funding" to stop the spill. |
Earlier BP said that its costs linked to the Gulf of Mexico oil disaster had risen to $2.35bn (£1.57bn). | Earlier BP said that its costs linked to the Gulf of Mexico oil disaster had risen to $2.35bn (£1.57bn). |
The total costs, including compensation claims, are expected to be much higher. | The total costs, including compensation claims, are expected to be much higher. |
"We consider that equity linked financing - perhaps backed by sovereign wealth - could prove the attractive short-term solution," said Nomura, | "We consider that equity linked financing - perhaps backed by sovereign wealth - could prove the attractive short-term solution," said Nomura, |
It added that BP's perceived need for more money was damaging the company in the eyes of investors. | It added that BP's perceived need for more money was damaging the company in the eyes of investors. |
BP's share price has more than halved since the oil disaster began in April, wiping about $90bn off the value of the company. | BP's share price has more than halved since the oil disaster began in April, wiping about $90bn off the value of the company. |
Investors are comfortable that BP is big and profitable enough to manage the clean-up costs - it made an annual profit of nearly $14bn last year. | Investors are comfortable that BP is big and profitable enough to manage the clean-up costs - it made an annual profit of nearly $14bn last year. |
However, there is more uncertainty over the impact that legal action and compensation claims could have. | However, there is more uncertainty over the impact that legal action and compensation claims could have. |
Relief well | Relief well |
BP is still pressing ahead with operations to collect some of the oil and gas still leaking from the oil well on the ocean floor. | BP is still pressing ahead with operations to collect some of the oil and gas still leaking from the oil well on the ocean floor. |
It said piping oil to two vessels above was collecting about 17,000 barrels of oil a day. | It said piping oil to two vessels above was collecting about 17,000 barrels of oil a day. |
Meanwhile work on the drilling of relief wells, designed to stop the leak, is continuing. | Meanwhile work on the drilling of relief wells, designed to stop the leak, is continuing. |
The first well is not due to be completed until early August. | The first well is not due to be completed until early August. |