30th July 2010
Another week, another five BP stories. If only the news were coming in less rapidly, we'd probably be hearing a lot more from the world's major investment corporations about how their changing perceptions of this stricken company were developing. As it is, however, the sheer magnitude of the BP news has all but silenced the experts. This isn't terribly surprising.
After all, here we are, with Britain's biggest company having suffered a £50 billion fall in its market capitalisation because of a drilling disaster whose financial implications are quite literally unimaginable.
Nobody has even the faintest idea what the eventual cost of the Macondo clean-up will be. $20 billion? $40 billion? $100 billion?
Will it wipe out the company, or leave it on the floor for Exxon Mobil to pick up for a song, as the conspiracy theorists are whispering?
We simply haven't a clue.
Which means that we are having to manage without the biggest valuation instrument in our toolbox.
No wonder the nation's pension fund analysts have gone into lockdown mode.
Hen's teeth are looking like a plentiful commodity compared with detailed analyst comment. It's a good job the bloggers aren't so restrained….