BP

Brazil has raised interest rates sharply, following China, India and host of countries across the emerging world in acting to curb inflation and counter the flood of dollar liquidity from the US.

An official report from the US on BP's Gulf of Mexico oil spill in April has described it as 'avoidable'.

BP shares soared 7% to a six-month high on the FTSE 100 yesterday as compensation payouts for its spill in the Gulf of Mexico looked set to be lower than expected.

Beleaguered BP saw its shares drop 3% to 461p today as the US government revealed it is suing the oil giant for gross negligence over the Gulf of Mexico oil spill, and is seeking $21bn or more in damages.

UK shares are in indecisive mode again this morning, while Asian stocks have been hit by renewed eurozone debt fears.

It has been a turbulent year for UK equity income fund managers, with BP suspending its payments, large-cap miners reinstating dividends and investors looking to the mid-cap space for income opportunities.

Despite unprecedented cash injections by governments in March 2009, the 12 months to September 2010 have seen increased levels of volatility.

BP is set to halve its previous £6bn annual dividend when it reinstates payouts early next year.

AXA Framlington's George Luckraft says he should have sold his BP shares following the Deepwater Horizon spill, but is optimistic on the group's prospects following this week's trading statement.

BP today announced a return to profit in the three months to September after last quarter's record loss, but has not resumed dividend payments to shareholders.