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FTSE 100 struggles to regain momentum as Cabinet Office Minister David Lidington warns that companies working for collapsed construction giant Carillion will only receive two days of government support
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Focus shifts towards the thousands of companies exposed to the outsourcer being liquidated
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Pound snaps three-winning streak against the dollar but holds firm just below $1.38, a post-Brexit vote high
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Economists expect UK inflation to have eased slightly to 3pc in December (due 9.30am)
Cabinet to meet to discuss Carillion fallout
Carillion kept winning government contracts despite its falling stock
The Cabinet are meeting today to discuss the continued fallout from the collapse of construction giant Carillion with the huge outsourcer's influence reaching far and wide across the sector.
Cabinet Office Minister David Lidington warned that firms on private sector deals with Carillion will only receive two days of aid but that public sector contracts would be supported.
Van Elle, an engineering contractor worth around £70m, has become the latest firm to flag its exposure to Carillion this morning, telling shareholders that it could take a £1.6m hit from its collapse.
Meanwhile, John Laing Infrastructure Fund has said that it has nine projects in which Carillion is involved in but that it expects that the collapse will have no material impact on the company.
BP to pay higher-than-expected £2.1bn of Deepwater Horizon claims in 2018
BP expects to pay out a higher-than-expected $3bn (£2.2bn) in compensation relating to the Deepwater Horizon disaster this year but said the class action scheme set up to handle claims was now “winding down”.
The oil giant’s Deepwater Horizon rig exploded in 2010, killing 11 people and causing massive pollution in the Gulf of Mexico. It has cost the company tens of billions of dollars in compensation and other costs.
BP now expects to book a post-tax non-operating charge of $1.7bn in its fourth quarter following “significantly higher claims” through its court-supervised settlement programme and an unfavourable legal ruling, bumping its annual expected payouts up 50pc from $2bn.
Despite the higher bills BP has not changed its financial guidance for the year as the charges are covered by its existing financial projections.
Read Jack Torrance's full report here
Agenda: FTSE 100 struggles to regain momentum as companies count the cost of Carillion's collapse
The FTSE 100 is struggling to rebound this morning as companies begin to count the huge cost of construction giant Carillion's collapse.