Must read: company results, UK rate decision, Opec+, BP
ii’s head of investment rounds up the morning’s big news.
3rd November 2025 09:10
by Victoria Scholar from interactive investor
GLOBAL MARKETS
European markets have opened mostly higher with the DAX leading the charge. Spain’s HCOB manufacturing PMI rose to 52.1 in October, up from 51.5 in September, beating forecasts to log the sixth straight monthly expansion.
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It is shaping up to be a busy week for UK investors with a slew of earnings including from BP (LSE:BP.), Associated British Foods (LSE:ABF), Marks & Spencer Group (LSE:MKS), Wetherspoon (J D) (LSE:JDW), ITV (LSE:ITV), Diageo (LSE:DGE) and more. Plus, the Bank of England is expected to keep interest rates unchanged on Thursday, although a rate cut isn’t being ruled out with markets pricing in around a 30% chance of a reduction.
US futures are pointing modestly higher on the first day of trade in November. US markets closed higher on Friday, closing out a strong month for Wall Street’s major averages fuelled by US China trade optimism and continued AI excitement.
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In Asia, China’s RatingDog manufacturing PMI fell to 50.6 in October, down from 51.2 in September, below forecasts but still above the 50-boom-bust divide. Japanese financial markets are closed for the Culture Day holiday.
Oil is trading higher this morning after Opec+ agreed to increase exports by 137,000 barrels a day in December and keep output unchanged in the first three months of next year. After sharp increases in production over the last year, the cartel has changed tack amid concerns about oversupply and falling oil prices with brent crude down sharply this year.
BP
BP plans to sell stakes in its Permian and Eagle Ford midstream assets for $1.5 billion. These divestments of its US shale assets are part of CEO Murray Auchincloss’ strategy to try to cut costs to improve earnings and ease pressure from activist shareholders. BP’s longer-term plan is to sell off assets worth $20 billion by 2027. Investors are cheering the update today with BP shares rallying 1.5%.
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BP is pursuing a very different strategy to rival Shell - BP is looking to sell assets while Shell is seeking acquisitions in an attempt to capitalise on the low oil price backdrop. Both companies have been dealing with a significantly lower Brent crude price this year which averaged $69 in Q3 versus over $80 in the same period last year.
BP will announce its third-quarter earnings tomorrow after Shell delivered forecast-topping quarterly profits last week, helped by record production off the coast of Brazil.
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