Equities update: Pearson, BP…

Transition to digital has been a successful learning curve for Pearson

Mark Crouch, market analyst at investment platform eToro, says: “Transition to digital has been a successful learning curve for Pearson, who for a long time had been guilty of clinging on to the future of print publishing. However, after decisive streamlining and cost cutting action, the UK publishing giant has broken free from what proved to be an inefficient and outdated business model to focus primarily on education, expanding partnerships, developing their education software, and using artificial intelligence to further improve their digital learning programs.

BP profits slide but beat estimates

Adam Vettese, market analyst at investment platform eToro, says: “Despite posting its worst quarter in almost four years, the numbers actually came in ahead of analysts’ expectations which should soften the blow for shareholders, with shares are down a modest 1% at time of writing. Squeezed margins as well as weaker trading have been contributing factors. BP’s transformation strategy to green energy has come under scrutiny and will continue to be under the microscope following today’s update.

“Potential escalation of conflict in the Middle East could well see a turnaround in oil prices, which have trickled down from their peak of around $86 earlier this year and BP’s shares have followed a similar trajectory. Refining margins are expected to stay low although outlook for upstream activities is expected to be higher than initially thought. Shareholders will be hoping that market conditions change and margins improve in order to see the price reclaim some of the 25% it has shed from its year high.”