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Shell 6% dividend is safe: Oil giant Shell shocked investors with profits well below expectations, sending the shares down 4.4%. The Brent crude price is falling rapidly as China – the world’s second largest oil consumer – suffers an economic slowdown, the U.S. dollar strengthens and production of oil from shale reserves increases across the U.S. Brent crude, a global benchmark of oil from 15 fields in the North Sea, has fallen from $115 per barrel in June last year to just $48.80 per barrel. Shell’s adjusted net profits of $3.26 billion in the last three months of 2014 were around 20% below market expectations of $4.14 billion, and down 44% on the previous quarter. That meant adjusted earnings for the year were $22.6 billion, up from $19.5 billion in 2013 but short of the $23.6 billion expected. Oil prices have fallen because too much of the commodity is in the market. As demand is falling, it doesn’t make sense to spend a fortune on finding more, so Shell can cut exploration spending to protect cashflow and pay dividends. The company said net capital investment was down 36% in 2014 to $23.9 billion, from $37.3 billion a year earlier. It will cut investment by a further $15 billion over the next three years. Shell said its cashflow in the fourth quarter was $9.6 billion, up from $6 billion in the same period in 2013. Cashflow from operating activities for the whole of 2014 was $45 billion, compared with $40.4 billion the previous year. Dividend payments run at about $3 billion a quarter, or $12 billion a year, and are therefore covered about three times. Shell’s shares could fall further in the year ahead but it is all about dividend income. Over the long term, and with the shares trading at 12.7 times forecast earnings, this remains a solid place to park cash. Royal Dutch Shell ‘B’ at £21.38-110p. Questor Says “Hold”.

Shell bows to shareholder demands on climate change: Royal Dutch Shell has bowed to shareholder pressure to be more open about how it is tackling climate change — on the same day it said it would press ahead with plans to drill in the Arctic.

ConocoPhillips and Shell outline billions of dollars in cuts: Two of the world’s largest energy groups, Royal Dutch Shell and ConocoPhillips, have set out plans for billions of dollars’ worth of cuts in their investment programmes in response to the plunge in crude prices.

UK GfK consumer confidence climbed in January The GfK consumer confidence climbed to 1.00 in January, in the UK, compared to market expectations of a rise to -2.00. In the prior month, the consumer confidence had recorded a level of -4.00. UK CBI distributive trade survey’s retail sales balance slid in January In the UK, the CBI distributive trade survey’s retail sales balance fell to a level of 39.00% in January, compared to market expectations of a drop to 32.00%. In the earlier month, the CBI distributive trade survey’s retail sales balance had registered a level of 61.00%.

At 0430GMT today, Brent crude oil one month futures contract is trading 0.24% or $0.12 lower at $49.01 per barrel. Yesterday, the contract climbed 1.36% or $0.66, to settle at $49.13 per barrel, rebounding from losses earlier during the session and recovering from almost 6 years lows.

The housing market continues to cool, according to the latest data from Nationwide, which says this morning that prices have increased by 6.8pc in the last year. In the summer, we were seeing growth of above 11pc, and January's number is the lowest annual gain since November 2013

Oil major Shell is looking to reduce costs and lower investment in 2015, but stressed that it wouldn't "over-react" to the collapse in crude prices. However, depressed prices - currently trading at their lowest in almost five years - and the impact of the $15bn of divestments made in 2014 would likely reduce cash flow this year.

BP sells off Gulf of Mexico stakes to raise cash and reduce risk: BP is selling off a stake in two promising discoveries in the Gulf of Mexico and transferring their operation to a U.S. group in its latest attempt to raise cash and reduce its exposure to challenging deep-water drilling risks.

High-net-worth individuals own 38% of U.K.’s total wealth, report says: Britain is home to 840,000 people who are dollar millionaires with £660,000 or more excluding their main home – a combined wealth of $3.5tn (£2.3tn).

Petrobras: dancing around the issue: Petrobras, the Brazilian state oil company, is doing a little dance of its own. On Tuesday evening it released unaudited third-quarter results, two months late. The company has still not resolved the matter of asset write downs, which have been expected after last year’s Lavo Jato bribery scandal. Petrobras overpaid contractors, inflating asset values. But it cannot agree with its auditors on the extent of the problem. The company says the cut to book value might be about $24 billion, a bit above the rumoured amount, and stresses that this will not affect cash flow. True, but things could not get much worse on that score. The results were better than expected at R$0.45 per share. And Chief Executive Maria das Graças Silva Foster said that the company would not trouble the bond markets for more money this year. This is welcome news. Petrobras since 2010 has issued $33 billion in dollar debt — fourth among all global companies, including U.S. ones. Plans to cut capital spending by a fifth will help control the outflows. The market had hoped for a 10% rise, and is less hopeful on cash flow, which had been estimated at about $23 billion, below the new capital spending target of $31-33 billion. And no one knows what the write down will be. Credit Suisse thinks its multiple of net debt to earnings before interest, tax, depreciation and amortisation will hit well over five times this year. Scary. Despite management’s assurances, the shares fell 10% on Wednesday.

Oil slips as U.S. inventories increase: Oil prices fell after U.S. commercial crude oil inventories increased by 8.9 million barrels from the previous week to 406.7 million barrels — the highest level for this time of year for at least the past 80 years.

Smaller oil explorers’ borrowing costs soar as crude prices fall: Investors are dumping bonds in oil and gas explorers seen as most vulnerable to the plunge in crude prices, with borrowing costs for some smaller companies soaring amid fears they could struggle to repay their debts.

At 0430GMT today, Brent crude oil one month futures contract is trading 0.27% or $0.13 higher at $48.60 per barrel. Yesterday, the contract declined 2.28% or $1.13, to settle at $48.47 per barrel, after the EIA reported that the US weekly crude oil inventories climbed by 8.9 million barrels to 406.7 million barrels, its highest level in 80 years.

2014 recorded strong growth in mortgage activity, figures from BBA have revealed, despite the volume of approvals and value of mortgage lending showing signs of slowing in December. A total of 499,000 house purchase approvals were made in the year, up 9% from the 459,000 recorded in 2013, with the overall mortgage stock in December being 1.5% higher than the year previously. Gross mortgage borrowing displayed a similar pattern, reaching a total of £130bn in 2014, compared with £110bn in 2013. However, activity had significantly slowed by December, largely thanks to tighter regulations being implemented during the year: gross mortgage borrowing totalled £10bn in the month, down 12% from December 2013 and a monthly fall of £0.1bn, while mortgage approvals fell to 59,248 from 60,116 in November. "The mortgage market has been softening since the spring," said Richard Woolhouse of the BBA, "but for customers taking out home loans right now there are some great deals, and we expect the market to begin to grow again this year." Elsewhere in the figures it was revealed that unsecured borrowing also showed improved activity levels, with annual growth in the sector running at a six-year high of 3.8%. The credit card market witnessed similar improvement, with 2.5bn transactions recorded in 2014, up 8% from 2013's total. "Robust employment data is making many of us feel more secure in our jobs and optimistic about our futures," added Woolhouse, which is "now feeding through to personal lending and credit card data".

BAGHDAD, Jan 28 (Reuters) - Royal Dutch Shell signed deal with Iraq worth $11 billion to build a petrochemicals plant in the southern oil hub of Basra, Industry Minister Nasser al-Esawi said on Wednesday. Esawi told a press conference in Baghdad the Nibras complex, which is expected to come on line within five to six years, would make Iraq the largest petrochemical producer in the Middle East. The factory's expected output was not immediately clear. Shell, which is one of the main oil majors operating in south of Iraq, signed a memorandum of understanding with the ministry for the project in 2012. (Reporting by Saif Hameed; Writing by Stephen Kalin; Editing by Louise Heavens)

Crest Nicholson’s 2014 results put it in a strong position for year ahead: Property developer Crest Nicholson reported a 21% increase in revenue during its annual results for the year ending 31 October to £636 million which translated to a 34% increase in profit before tax of £116 million.

Bank warns about outlook for North Sea: The North Sea will be hit especially hard by cost cutting by oil and gas firms following the slump in the crude price which will only stabilise at $90 per barrel in 2018, a prominent investment bank has warned

Britvic shares jump on profit target: Britvic, the Owner of Robinson’s fruit juice, said it was still on target to hit profit expectations despite falling sales and a loss of market share in the U.K. ‘ss update sent the shares almost 6% higher. The FTSE 250-listed soft drink maker is operating in an extremely difficult U.K. drinks market. The big supermarkets are cutting prices to win back customers from the discounters and soft drinks are just one of the many battle grounds. Britvic said that it is losing market share in the squash category and this is most likely supermarket own brands eating its lunch. Britvic has suffered a setback attempting to expand into the U.S. market. The company reported a fall in sales of 3.6% to £10.7 million to the end of December and said new manufacturing processes in the U.S. meant it had to deliver less of the concentrated juice used to make its products. The drinks company said it remains on target to achieve earnings before interest and tax of between £164 million to £173 million for the year to September. This is due to a sharp focus on costs and Simon Litherland, Chief Executive, is looking to achieve £30 million of annual cost savings by 2016. The shares have been weak during the past 12 months having peaked at 777.5p in February last year as investor’s feared for falling sales and price competition in U.K. soft drinks. The shares are now trading on 15.7 times 2014 forecast earnings, falling to 14.2 times next year. The company remains at risk from increased regulation such as a sugar tax or a washout summer. However, these are impossible to predict, and Britvic has proven its long-term quality. The shares also have a 3.5% prospective dividend yield on offer, and that is set to increase by 10% during the next two years, so the shares remain a solid hold. Britvic at 688.5p+42.5p. Questor Says “Hold”.

Saudi Arabia increases oil output to crush U.S. shale frackers: Saudi Arabia has secretly increased its oil production to 9.8 million barrels per day (bpd), its highest level of output since last October, in a push to win back market share in its oil price war with U.S. shale drillers.

Grate expectations: Foxtons would be a cave-aged Roquefort, or some other trendy fromage that is pungent, pricey but not to everyone’s taste. The London estate agency says commissions dropped 26% in the past quarter. Adjusted earnings for 2014 will be about £46 million. That is £1.5 million shy of analysts’ estimates. The shares are 32% below their 2013 float price. Foxtons blames a subdued luxury housing market, though BL reports strong sales from its Clarges Mayfair super-prime development. The real difference, though, is BL’s size and diversity. Exposed to retail, residential and offices, it represents a play on a broadly based U.K. recovery. The shares have risen 26% in a year. The stock is up with events at 1.1 times net asset value. Foxtons’ shares are trading at 14 times 2014 forecast earnings. There is danger they could start to look affordable. Which is more than you can say for Foxtons’ prices for two-bed flats in Clapham.