Market watch

OIL giants Shell and BP will present a contrasting picture to the markets this week as the fall-out from the Gulf of Mexico oil disaster continues to hit the latter’s production.

BP’s profits are forecast to be down 11 per cent at around $4.9 billion (£3.1bn) in the third quarter, on production of just over 3 million barrels of oil a day.

The firm, which reports on Tuesday, was pumping 4 million barrels before the disaster, but its pledge to sell $30bn worth of assets and the suspension of Gulf of Mexico drilling has hit production.Rival Royal Dutch Shell is expected to benefit from new exploration projects and rising gas prices when it also reports third-quarter results on Thursday.

Publisher Bloomsbury is set to reveal a further boost from electronic readers when it posts half-year figures on Thursday. Sales of e-books hit £1.5m in 2010, up from £79,000 the previous year, driven by strong growth in the US and a surge in demand from the UK. The acceleration continued in 2011, with Bloomsbury selling £1.1m worth of e-books in the first three months alone.

Bloomsbury, which publishes the Harry Potter books, is expected to make profits of about £9.2m, up from £7.7m a year ago.

But Thursday will also see Clinton Cards report a slump in full-year profits amid worsening sales declines. Clinton’s shares have lost 80 per cent of their value since the start of 2010 as the chain suffered increased competition from rivals such as Moonpig and WH Smith’s Funky Pigeon website, which sell personalised cards.

In recent months it has attempted a fightback, revamping its website and refitting some of its 800 stores. It is also selling cards for as little as £1 to help it attract cash-strapped consumers at the expense of its margins.

James Dilks-Hopper, an analyst at Numis, expects Clinton to report an 81 per cent fall in pre-tax profits to £2.5m in the year to 1 August, but says the figure may be even worse.