Strategic Finance
FTSE: Lloyds, Xstrata lead |
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| Strategic Finance | |
| Written by Gary Howes | |
| Thursday, 18 June 2009 | |
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The FTSE 100 index is slightly down again this morning, but hopes are the poor run for resources is over.
The FTSE 100 is 0.05% down by 9:10am (See .FTSE). Lloyds Banking has shown an impressive resilience during a week when the FTSE has suffered, primarily on the back of poor performances in the resources sector. Not even the words of Bank of England Governor Mervyn King have shaken investors: Last night King called for banks that are "too big to fail" to be cut down to size as he opened a deep rift with Alistair Darling over the future regulation of the City. Lloyds Banking Group is of course the giant that emerged from the credit crunch after Lloyds TSB and HBOS were merged. Xstrata (LON:XTA) is also up this morning after both Citi and Morgan Stanley upgraded their rating of the stock - Citi upgraded the miner to "buy", nothing that the firm's commodity mix provides significant leverage to improving macro conditions. Other news out this morning also suggests that Xstrata is unlikely to make a hostile bid for Anglo American (LON:AAL). Anglo investors want Chief Executive Officer Cynthia Carroll to study a merger with Xstrata, London’s Times newspaper reported on June 15. The rally in Xstrata has however been overshadowed by sales in HSBC and oil companies.
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