Stock Exchange responds to BHP rise

Source: Stock Market Digital

Date :22/08/2007 09:26:16

The London FTSE 100 opened 0.7 per cent higher this morning boosted by strong BHP Billiton results and expectation of further US rate cuts.

The London listed mining company BHP Billiton reported its fourth consecutive record results with net profits for the year to the end of June up by 28.4 percent to $13.42 billion (£6. 8billion).

The company also said it expects continued growth in the outlook period, commenting: “Our continued focus on growing production from high returning assets throughout the cycle has allowed us to take advantage of strong global market conditions and underpins the financial results we have announced today. Our attributable profit (excluding exceptional items) of US$13.7 billion represents an increase of 34.7 per cent over last year and a more than sevenfold increase since our 2002 result (our inaugural result following the BHP and Billiton merger).

There has also been speculation that US interest rates may be cuts following a meeting between Federal Reserve chairman Ben S. Bernanke (pictured), Senate Banking Committee chairman Christopher Dodd and Treasury Secretary Henry Paulson in Washington yesterday. After the meeting Bernanke promised to use "all of the tools at his disposal" to restore stability in financial markets upset by the sub prime mortgage crisis.