Reuters Insider - Reuters Today: BHP books record losses, Schindler also down
16/08/2016 15:10
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Source: Thomson Reuters
Description: BHP Billiton records annual loss of $6.4 billion.
Also bottom of the board this morning - Schindler
and Rotork. Meanwhile PM Theresa May tries to make
amends with China following the Hinkley delay.
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Transcript (May be auto-generated)
Good morning and welcome to Reuters Today. I'm Angeline Ong. The world's biggest
mining company has booked a record annual loss of $6.4 billion due to a bad bet
on shale, a dam disaster in Brazil and a commodities slump. However, BHP says
with cost cuts and a reduction in net debt, it still expects cash flow to more
than double this year. Investors seem to be impressed with that guidance. Shares
in BHP rising almost 2% in London. Another gainer is Linde. The German-based
company engaged in the gas and engineering sector, seeing their shares approach
their highest level in more than eight months. U.S. industrial gas maker Praxair
is in talks to buy the firm. In the loser's circle, Schindler's shares are down;
the stock is set for the worst day in seven months. Pricing pressures and weaker
markets in China and Latin America fueling the problems. Also among the worst
performers in early trading, Rotork. Shares in the industrial firm tumbling
after HSBC cut the valve-control systems maker to reduce from hold. Swiss firm
Schindler also cutting its outlook for this year, pushing its shares down more
than 3%. That's weighing on the broader markets and the European stocks have
come off 7-week highs. Let's take a look at the FTSE first. It's down around
0.5% right now actually while the FTSEurofirst 300 is down around three-quarters
of 1%.
In other news, Prime Minister Theresa May's written to China's president and
premier in a bid smooth to over their relationship following her delay in
signing off the Hinkley Point nuclear project in Somerset. May wrote that she
was looking forward to the G20 next month and strengthening cooperation with
China on trade and business. That's after China cautioned Britain against
closing the door to Chinese money. Rail fares have gone up at double the speed
of wages in the past six years. Research by the TUC and Action for Rail campaign
showed the cost of tickets has increased by 25% since 2010 while average weekly
earnings only rose 12%. Dividends paid to shareholders also soared 21% in the
last year to over GBP200 million. Later this morning, commuters will find out
how much regulated fares will rise in 2017 when inflation figures are released.
And that's it for now. I'm Angeline Ong and this is Reuters