Bolton backs BP but it’s been a mixed day for BP investors.
First off, a bit of good news……
Bolton, who now runs the Fidelity China Special Situations trust, said that he has searched hard for a way to buy into BP in his China trust but has conceded it is not a China theme.
He said: 'You have to take this as a top down view because I am not as close to BP as I used to be. But I have thought long and hard to see if there is anyway I could include BP in the fund but I really can't find a way to make it into a China play. I think investors are being given a classic once in a lifetime opportunity to buy BP.
'Most of the time it is the case that when something really negative happens investors worry about if and the reality is not as bad as the worrying. Okay they have to pay a lot of money out but my view is BP will survive and will prosper. This will just be considered a very poor chapter in its history. ' (source Citywire)
But much like the share price, the latest news for BP is unpredictable. Hot on the heels of Anthony Bolton’s vote of confidence comes news from Washington that Congress is to effectively bar BP from oil exploration in the United States for years to come. There are also claims that the company lobbied for the Lockerbie bomber to be released as part of an oil-for terrorist deal. which is obviously causing a stir across the pond.
So it seems that BP shares remain in the ‘speculative investment’ category for now but Bolton’s comments will no doubt spur some investors into action. But putting investment aside for one second, the US led ‘BP witch-hunt' will not do any favours for transatlantic relations.
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