Lloyds Share Price: Tapering and Syria Could See Stake Sale Postponed

on Sep 6, 2013
Listen

iNVEZZ.com Friday, September 6th: Shares in Lloyds Banking Group (LON:LLOY) opened lower today on media reports that a sale of the U.K. government’s stake in the lender could be postponed due to the uncertainty in the financial markets.

Yesterday two inside sources were quoted by Bloomberg as saying that the Treasury was reluctant to go ahead with a share sale while tension in the Middle East threatened to destabilise the markets. “The threat of war is not particularly helpful for markets, which therefore would not be particularly helpful for a stake sale,” Jefferies International banking analyst Joseph Dickerson told Bloomberg. A possible reduction in the U.S. Federal Reserve’s bond-buying programme is also weighing on sentiment as investors await the Federal Open Market Committee (FOMC) meeting on September 17-18 for clues on the central bank’s future monetary policy, with ‘tapering’ distinctly in prospect.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

eToro
**Start Investing The Social Way! >>**
FTSE 100 Watch: Signs of Economic Recovery Lift Footsie FTSE 100 Watch: Airlines Push Footsie Lower

FOLLOW our top traders or BET against them.
http://nvz.bz/1cgV29L
Chancellor of the Exchequer George Osborne will be looking to capitalise on the 55 percent surge in Lloyds’ share price since the beginning of the year to ensure that taxpayers not only get their money back but actually turn a profit on the government’s ₤20 billion investment in the bank almost five years ago. At 74.37p per share currently, Lloyds is trading well above the 61p marked by the government as the breakeven level on the bailout. According to the inside sources, if market turbulence abates, the government will be ready to proceed with the divestment at short notice.

Next week could either calm the markets or send them into turmoil with the U.S. Congress re-convening and expected to vote on President Obama’s proposal for a military strike against the Syrian government. Philip Keevil, a partner at Compass Advisers Group, was quoted by Bloomberg as saying that it was not just about whether there would or would not be a strike but also “how long the bombardment lasts, how widespread and the response of the Syrians and the Iranians, both of whom have made very strident threats”. Keevil explained that “if there was counter action, say, against Saudi or Israel or against shipping in the Gulf, it would likely have a negative effect on equity issues and the willingness of banks to underwrite” a stock offering.

**4,000 Say No to New TSB Bank**
!m[Thousands of happy Lloyds customers don’t want to move](/uploads/story/5318/thumbs/pic1_inline.jpg)
On Monday next week the new TSB bank’s 631 branches, which were carved out of Lloyds in a deal with European regulators, will open their doors to around 4.6 million customers. According to The Times, some four thousand clients assigned to TSB want to stay with Lloyds while another thousand have asked to move in the opposite direction.

Lloyds chief executive Antonio Horta-Osorio earlier this week promised customers a “seamless transition”, saying that the only thing they would notice would be a change of name (CEO Pledges “Seamless Transition” to TSB ).
**As of 09.07 BST buy Lloyds shares at 74.40p.**
**As of 09.07 BST sell Lloyds shares at 74.36p.**

eToro
**Start Investing The Social Way! >>**
FTSE 100 Watch: Signs of Economic Recovery Lift Footsie FTSE 100 Watch: Airlines Push Footsie Lower

FOLLOW our top traders or BET against them.
http://nvz.bz/1cgV29L

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Finance & Banking Services Stock Market