Energy prices, credit checks and homes

Friday 15 January 2016 

The FTSE 100 opened mildly lower ahead of a raft of UK and US economic news and following downward overnight moves in Asian markets. BHP Billiton (LSE:BLT) was among the biggest fallers after a $7.2bn write down on its US shale assets.

“BHP Billiton is not the first to take a hit from plunging oil and gas prices and it is unlikely to be the last,” says AJ Bell Investment Director Russ Mould.

“BHP has spent heavily on its US shale-gas business and billions of dollars on exploring and developing assets but these costs are unsustainable given the slump in energy prices and while it grapples with the cost of a dam burst in a Brazil mining joint venture and the collapse in prices for iron ore, its biggest division.

“Credit data company Experian (LSE:EXPN) was near the top of the blue-chip board in early trading after it maintained its full year guidance, despite currency headwinds. Margins are stable and it expects further progress in benchmark earnings per share.

“Bovis Homes (LSE:BVS) was also up in early trading with the group set to unveil record pre-tax profits for 2015. And the group has started this year on the front foot with total reservations up 14%.”

These articles are for information purposes only and are not a personal recommendation or advice.