BP video simulation of the lowering of the lower marine riser package (LMRP) to cap the blow-out preventer (BOP) on the oil well in the Gulf of Mexico.

Oil firm BP has lowered a capping device on to a leaking oil well, in its latest attempt to stem the flow of oil into the Gulf of Mexico, which was triggered by an explosion and 11 deaths on April 20th.

Video footage showed the cap lowered into place against pressure from escaping oil and gas. It could take up to 24 hours before it is clear whether the move has worked. Late Thursday, Admiral Thad W. Allen of the Coast Guard, who is commanding the federal response to the disaster, announced that the cap had been put in place, but warned that“it will be some time before we can confirm that this method will work and to what extent it will mitigate the release of oil into the environment.”

Meanwhile, US President Barack Obama has strongly criticised BP and for the second time, has cancelled a trip to Indonesia, where he spent 4 years at school, and Australia. He said he had not seen "the kind of rapid response" to the disaster that he would have liked.

In an interview with CNN, he said BP had already "felt his anger" over the spill.

“The American people don’t elect somebody, I think, that they don’t believe can walk and chew gum at the same time,” Robert Gibbs, the White House press secretary, told reporters earlier Thursday. “Sometimes it feels like we walk and chew gum and juggle on a unicycle all at the same time. I get that.”

The New York Times in an article on Tony Hayward, says that the BP chief executive’s tendency to utter provocative statements has prompted a surge of criticism from politicians, bloggers and television pundits, who took particular offense at the “I’d like my life back” comment. He apologised to the families of 11 men who died on the rig for the remark.

The Times says Hayward, an earnest-looking man with cherubic red cheeks and a soft British accent, remains ever present in BP’s response efforts.

One Louisiana congressman, Charlie Melancon, has started a petition campaign calling on BP’s board of directors to fire Hayward, and financial analysts are increasingly predicting that he will get the boot before the crisis is over.

“People want to know someone is in charge, that the right person is there, but someone who says the stuff that Hayward has said doesn’t engender confidence,”said Sydney Finkelstein, a professor of strategy and leadership at Dartmouth University’s Tuck School of Business.“We understand he is overwhelmed, but that also might suggest he’s not the right man for the job.”

BP today announced that is has established a $360m escrow account to fund immediately the construction of six sections of Louisiana barrier islands approved by the US government.

BP has been directed to pay for the construction by the federal government. Since the environmental implications of the projects are not fully understood, BP said it assumes no liability for unexpected or unintended consequences of these projects. It says it has already provided $170m to Louisiana, Alabama, Mississippi and Florida to help with their response costs and help promote their tourism industries. The company has also paid approximately $43m in compensation to people and companies affected by the spill.

"Man, you've got to get down here and take control of this," said Bill Clinton's 1992 campaign manager, Democratic political strategist and Louisiana resident, James Carville, after Obama's 2nd visit to the scene last week. "We're about to die down here."

Carville says Obama and his administration were not doing enough to assist residents of the Gulf Coasts who have lost their livelihoods to the oil leak.

Gas-guzzzling Americans are in search of scapegoats but this spill is not going to cut the addiction!

Economic View: All not well in European banking markets; Goodbody chief economist, Dermot O’Leary, comments  - -"Central bankers and policymakers may soon have to go back to their toolboxes in search of further solutions to problems in sovereign markets and the banking system. The €750bn package announced by the Europeans at the start of May was meant to ease markets’ fears about the possibility of a sudden stop of funding to European sovereigns. It did lead to a sharp reduction in bond yields initially, but this euphoria has since waned, with bond yields increasing further in recent days. For example, Irish ten-year yields rose to 5% yesterday, with the spread over German bunds standing at 2.35%. Spanish ten-year yields rose to 4.52%, higher than before the announcement on the 9th May.

 Related to this, there is very real evidence of an unwillingness of banks to lend to each other due to perceived higher counterparty risk. One example of this is the TED spread, which our preferred indicator of stress in the banking system. This indicator rose further yesterday to above 40bps and is now at its highest level since early July 2009. This is due to the increase in interbank funding costs, where the US LIBOR rate has risen to 0.54%, from 0.35% one month ago.

In Europe, with banks willing to lend to only the very strongest counterparties, the ECB’s overnight deposit facility has become the preferred home of excess liquidity. Yesterday, the ECB revealed that the usage of this facility has reached a record high of €316bn. When banks are willing to take a lower return (0.25% on the ECB facility) just for certainty, it is clear that not all is well in the system. There will be plenty to discuss at this weekend’s G20 summit of finance ministers and central bankers in South Korea this weekend."

Treasury Secretary Timothy Geithner shares his thoughts on where the job market is headed, with CNBC's Steve Liesman. Feedback with John Rutledge, Rutledge Capital; Peter Navarro, University Of California - Irvine and William Isaac, LECG Global Financial Services:

UK housing market continues to defy austerity fears: Davy chief economist, Barry Dixon, comments - - "The UK housing market continues to defy fears that government cuts could put a large dent in consumer spending and confidence. House prices continue to rise as do mortgage approvals, housebuilders are planning to build more houses and construction confidence continues to increase.