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June 1st, 2010
12:36 PM ET

Financial Dispatch: Wall Street punishes BP

Andrew Torgan
CNN Business News Producer

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2010/US/06/01/gulf.oil.spill/smlvid.ship.jpg caption="Stock markets all around the globe got their first chance to react to the news that BP’s “top kill” operation last week was a failure." width=300 height=169]

Stock markets all around the globe got their first chance to react to the news that BP’s “top kill” operation last week was a failure.

BP's stock sank 12% at the open on Wall Street to around $38 a share. In London, where the former “British Petroleum” is headquartered, the stock tumbled 14%. Overall, BP shares have plummeted nearly 40% since the Deepwater Horizon oil rig exploded in the Gulf of Mexico on April 20.

But BP is not alone. Shares of ExxonMobil are down about 11% and Chevron’s stock is down more than 9%.

Crude oil, by the way, is also down 11% and gasoline prices are off an average of nearly 5% nationwide.

As of Saturday, BP said costs related to the spill began to approach $1 billion. And analysts have thrown out a wide range of estimates - from $4 billion to $25 billion - on how hard the leak will hurt the company's bottom line.

By way of comparison, ExxonMobil paid $3.4 billion in cleanup costs for the Exxon Valdez spill in Alaska - but ultimately only paid $507.5 million for the legal settlement and $500 million in interest payments.

Traders close the books on brutal month

Wall Street likes nothing more than a good maxim, such as “As goes January, so goes the year.” Another popular saying is “Sell in May, go away.”

And sell we did…

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Filed under: Andrew Torgan
June 1st, 2010
11:50 AM ET

Video: Can 'cut and cap' work?

John Roberts | BIO
Anchor, American Morning


Filed under: Gulf Oil Spill • John Roberts
June 1st, 2010
11:21 AM ET

'Money is killing us,' Gulf fisherman says

Elizabeth Cohen
CNN Senior Medical Correspondent

[cnn-photo-caption image=http://i.cdn.turner.com/cnn/2010/US/06/01/gulf.oil.spill/c1main.ship.jpg caption="The latest health risk in the Gulf of Mexico is an abundance of money, says one Louisiana fisherman." width=300 height=169]

The latest health risk in the Gulf of Mexico is an abundance of money, says one Louisiana fisherman.

“Money,” says Clint Guidry, acting president of the Louisiana Shrimp Association, “is killing us.”

BP is paying fishermen up to $3,000 a day to help clean up the oil, according to a contract between BP and one of the fishermen obtained by CNN.

He says the nine fishermen who were brought to the hospital while working for BP are unwilling to talk because they fear losing their jobs. The men suffered symptoms such as shortness of breath, irritated nasal passages, nausea and headaches.

Keep Reading...


Filed under: Elizabeth Cohen • Gulf Oil Spill
June 1st, 2010
11:13 AM ET

Letters to the President #498: 'Hockey... and hanging tough'

Tom Foreman | BIO
AC360° Correspondent

[cnn-photo-caption image=http://i.cdn.turner.com/si/2010/writers/brian_cazeneuve/06/01/flyers.hawks.game2/0531_niemibillsmith415.jpg caption="In a tough game, such as politics or hockey, being clever, shrewd, and dedicated to the hard work all matter; but being able to take a punch, and bounce back as if you were never hit, matters too. " width=300 height=169]

Reporter's Note: The failures to cap the Gulf oil spill continue to cast a pall on the White House’s handling of the matter; just as I continue to post a letter each day to President Obama, which no doubt casts a general pall on everything.

Dear Mr. President,

As you may suspect, I’ve grown a tad weary of asking if you are following the hockey playoffs, because it never seems as if you are. That’s your loss. The Blackhawks (Yes, that is Chicago’s team, in case you have not bothered to notice) are playing for the Stanley Cup against the Philadelphia Flyers. It is a magnificent duel so far, and you really ought to tune in if you have a spare moment, although I imagine between oil spills, international incidents like this business near Gaza, and whatever the Cap Hill crowd is cooking up at any given moment, that might be a stretch.

For the record, I’m pulling for the Hawks who are now up 2-0 in the series, because it’s been a very long time since they’ve been in this position and my Dad was from Chicago, so that was always his first choice.

Hockey is actually a great sport for you to be thinking about these days, considering the knocks you’ve been taking. Because hockey, in once sense, is largely about taking hard hits over and over and yet staying in the game; hanging out in front of the net no matter how many bruises you get or how many teeth you give; waiting for the puck to come by to slam it home.

That’s not an insignificant lesson especially, if I may say, for smart people. Often people who are pretty sharp (or worse…fancy themselves such) think they can simply outwit every problem; that their dazzling intellect will overcome everything from physics to human nature. But that is not always the case. That’s when sheer, raw, toughness must come into play.

In a tough game, such as politics or hockey, being clever, shrewd, and dedicated to the hard work all matter; but being able to take a punch, and bounce back as if you were never hit, matters too. And not to be snarky, but I think the jury is still out on that with your presidency. You’ve shown what you can do when everything is going your way. Now, engage these tough issues, put the mistakes of the past few weeks behind you, and show you can fight on even when you’ve been hammered. That will be good not only for your presidency, but also for the nation.

Call if you can. I’m traveling today, but on cell most of the time.

Regards,
Tom

Follow Tom on Twitter @tomforemancnn.

Find more of the Foreman Letters here.

June 1st, 2010
10:47 AM ET

Voters could make history in Alabama

Paul Steinhauser
CNN Deputy Political Director

[cnn-photo-caption image=http://i.cdn.turner.com/cnn/2010/POLITICS/06/01/tuesday.primaries/story.davis.alabama.gi.jpg caption="Rep. Artur Davis would become Alabama's first black Democratic nominee for governor if he wins the primary." width=300 height=169]

Three states - Alabama, Mississippi, and New Mexico - hold primaries Tuesday, and voters could make history in one of those states.

Rep. Artur Davis faces off against Agriculture Commissioner Ron Sparks in Alabama's Democratic gubernatorial contest. If the four-term congressman wins Tuesday's primary, he would become the state's first African-American Democratic nominee for governor. If Davis is elected in November, he would make history again, becoming Alabama's first black governor.

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Filed under: Raw Politics
June 1st, 2010
10:28 AM ET

Gergen: Mr. President, take command

David Gergen
CNN Senior Political Analyst

[cnn-photo-caption image=http://i.cdn.turner.com/cnn/2010/OPINION/05/30/gergen.oil.spill/story.obama.visits.gulf.oil.gi.jpg caption="President Obama visits the Gulf Coast to assess the damage up close." width=300 height=169]

Enough is enough! After the latest failure by BP to plug the gaping hole, it is time for President Obama to take full command of this growing national catastrophe. Immediately!

The president in his press conference this past Thursday assured the nation that he and his administration were already in charge and he has manfully taken personal responsibility - "the buck stops here," he said, echoing Harry Truman. Well, it may be true that BP has been acting all along under the oversight of the federal government, but that supervision has been loose and ineffective.

To the world, it has been apparent that the government has been riding shotgun and BP has been at the wheel. It's time for the White House to get in the driver's seat and get us to safety - fast.

Keep Reading...


Filed under: David Gergen • Gulf Oil Spill • Opinion
June 1st, 2010
10:06 AM ET

Robots to begin cuts to gushing well

CNN Wire Staff

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2010/US/06/01/gulf.oil.spill/t1main.oil.spill.01.gi.jpg width=292 height=320]

An operation aimed at lessening the amount of oil gushing from an underwater well in the Gulf of Mexico was under way Tuesday, weeks after a similar effort was abandoned, a BP official said.

"We want to minimize the flow of oil into the Gulf of Mexico, and we're well into an operation to do that," BP Managing Director Bob Dudley said.

Within hours, he said, robots will begin making a series of cuts to the "lower marine riser package" on the well. After that, a diamond-cut saw will be used to make a "clean cut," preparing the way for a custom-made cap to be fitted over the package.

Keep Reading...


Filed under: Gulf Oil Spill
June 1st, 2010
09:25 AM ET

The legacy of 'drill, baby, drill'

Julian Zelizer
Special to CNN

[cnn-photo-caption image=http://i.cdn.turner.com/cnn/2010/OPINION/06/01/zelizer.deregulation.oil/tzleft.julian.zelizer.jroemer.jpg caption="Zelizer says lax regulations helped set the stage for the massive Gulf oil spill" width=300 height=169]

The impact of the oil spill in the Gulf Coast is starting to be made vivid by the steady flow of still images and video that capture this catastrophe. For example, Phillippe Cousteau, the grandson of Capt. Jacques-Yves Cousteau, dove into the oil spill, wearing protective gear. He captured horrifying video images of what has been taking place beneath the sea.

A debate is already unfolding about whether President Obama has been effective in his response. Is this Obama's Katrina, as some commentators have asked? The president has come under fire, primarily from Republicans, but also from a growing number of environmental advocates, for being too slow to act.

Recent news reports have revealed the Obama administration has been as negligent in its oversight of drilling as the previous administration.

Keep Reading...


Filed under: Gulf Oil Spill • Julian E. Zelizer • Opinion
June 1st, 2010
09:15 AM ET

Video: Capping the leak

John Zarrella
CNN Correspondent


Filed under: Gulf Oil Spill • John Zarrella
June 1st, 2010
09:12 AM ET
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