The UK bank failed to say when dividends may resume, warning instead of a weak operating environment. But its restructuring is going well and the core bank earns high returns. If the UK economy recovers, the investment case is much clearer than at rival state-backed RBS.
A minority partner’s deal with the U.S. government is a promising sign ahead of a critical civil trial opening on Feb. 27. Extreme financial penalties look priced into BP stock whatever the verdict. So too is a big management discount. There’s lots of upside if BP isn’t thwacked, and its board restores credibility.