FTSE 100 Live Thursday
- Shell rules out BP bid
- AB Foods set to close plant
- Moonpig CEO to step down
Market update: FTSE 100 flat as Shell ends BP talk, pound above $1.37
10:03 , Graeme EvansA firm rebuttal of Shell-BP merger speculation today put the focus back on geopolitics and the faltering US dollar during a steady FTSE 100 session.
Shell issued a stock market statement rejecting yesterday’s reports that it was in talks with its UK rival over a possible takeover bid.
It is now bound by the restrictions of the takeover code, meaning it will not be able to make an approach to BP for six months outside of certain circumstances.
Shell added: “We remain focused on delivering more value with less emissions through performance, discipline and simplification.”
Its share rose 3.5p to 2567p and BP dipped 0.4p to 364p.
AJ Bell investment director Russ Mould said: “Speculation last night around a BP bid effectively set the stage for the UK stock market to rocket today. Instead, Shell has spoiled the party and the blue-chip index is static.”
The FTSE 100 index rose 0.1% or 11.42 points to 8730.17, with Glencore and BAE Systems among those up by about 2%. Ex-dividend stock British American Tobacco lost 54p to 3463p.
Sterling traded above $1.37 for the first time since January 2022 as the poor run for the US dollar continued.
Pressure on the greenback intensified after bets on interest rate cuts were fuelled by reports that President Trump intends to name the new Federal Reserve chair as early as September.
UBS Global Wealth Management said dollar weakness looks to be another positive for the tech sector after Nvidia and the Nasdaq 100 last night set record highs.
The bank thinks dollar pressure will persist as US growth slows and interest rates fall. It said: “Such a backdrop will serve as a tailwind for tech stocks, as overseas sales account for over 50% of US tech companies’ revenue.
“This means profits earned abroad would translate into a direct boost in bottom lines, supporting a strong earnings outlook driven by rising AI spending.”
The FTSE 250 index rose 60.54 points to 21,358.58, with car distribution firm Inchcape up 6% or 43p to 724p after reiterating its outlook for 2025 trading.
Moonpig slid 10% or 23.5p to 220p as traders reacted to the disclosure that Nickyl Raithatha plans to step down after seven years in the role.
The online greetings card firm also reported a 16% rise in underlying profits to £67.5 million and said recent trading saw it enjoy record Father’s Day demand.
PZ Cussons opts to keep St Tropez brand
09:09 , Graeme EvansThe owner of St Tropez has decided to hold on to the self-tanning brand more than a year after putting it up for sale.
PZ Cussons, the consumer goods firm which also owns Imperial Leather, Carex and Sanctuary Spa, said staff will be incentivised to boost the brand’s performance.
It told investors in April last year that it was looking to sell St Tropez to an owner “better placed to capture the brand’s significant long-term potential”.
PZ Cussons bought the beauty business for £62.5 million in 2010, and it has become one of the UK’s biggest self-tanning brands sold in retailers across the country.
Shares fell 2.5p to 73.8p.
AB Foods sets deadline for bioethanol plant closure
08:51 , Graeme EvansAssociated British Foods today said the UK’s largest bioethanol plant will stop production by mid-September unless the Government acts.
The group’s Vivergo plant in Hull can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms.
It said recently that the removal of a 19% tariff on US ethanol imports, which formed part of the recent UK-US trade deal, was the “final blow”.
Given “the strategic importance of a domestic ethanol supply”, AB Foods said today that the Government has committed to formal negotiations to reach a “sustainable solution”.
It is simultaneously beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation.
Moonpig in search for new CEO, shares fall
08:38 , Graeme EvansMoonpig today revealed that boss Nickyl Raithatha plans to leave the firm after seven years in the role.
The online greetings card firm said that he has a year’s notice period and will continue to lead the firm while it hunts for a successor.
His departure plans emerged as the firm reported a 16% rise in underlying pre-tax profits to £67.5 million in the year to April 30 and said more recent trading saw it enjoy record Father’s Day demand.
Shares fell 7% or 16.5p to 227p.
Miners bolster FTSE 100, ex-dvidend BAT down 2%
08:30 , Graeme EvansThe steady run of the FTSE 100 index continued today after stronger mining stocks helped London’s top flight up 4.74 points to 8723.49.
Rio Tinto and Anglo American rose 1.5%, while Vodafone and NatWest lifted 1%.
British American Tobacco led the fallers board, declining 2% or 65p to 3452p after the shares began trading without the right to the latest dividend award.
Shell shares rose 5.5p to 2569p after it ended speculation over a takeover tilt for BP. Shares in its rival stayed at 364.35p.
The FTSE 250 index rose 29.41 points to 21,327.45 but mid-cap stock Moonpig fell 6% or 14p to 229.5p after announcing that Nickyl Raithatha intends to step down after seven years as chief executive.
Dollar extends losing run, pound at $1.37
07:57 , Graeme EvansDollar weakness continued today, leaving the pound above $1.37 at its highest level in more than three years.
Expectations for US interest rate cuts have been fuelled overnight by reports that President Trump plans to announce the new Federal Reserve chair as early as September.
The dollar index is at a three-year low against a basket of major currencies, with the euro up this morning to match the late 2021 high at near $1.169.
IG said: “Markets had found some stability after the Israel-Iran ceasefire, but attention is now turning to Trump’s 9 July tariff deadline and speculation around Fed leadership.”
UBS Global Wealth Management points out that US dollar weakness should be supportive for the tech sector after the Nasdaq 100 last night notched its second record since February and the S&P 500 stood within 1% of its record high.
UBS said this morning : “The US dollar has depreciated sharply this year, and we think the dollar weakness will persist as US growth slows and interest rates fall.
“Such a backdrop will serve as a tailwind for tech stocks, as overseas sales account for over 50% of US tech companies’ revenue.
“This means profits earned abroad would translate into a direct boost in bottom lines, supporting a strong earnings outlook driven by rising AI spending.”
Shell confirms no BP approach
07:19 , Graeme EvansShell today issued a stock market statement confirming it has no interest in a takeover of BP.
The oil giant said: “In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.”
Shell said it will be bound by the restrictions of the Takeover Code, meaning it will not be able to make an approach to BP for six months outside of certain circumstances.
It added: “We remain focused on delivering more value with less emissions through performance, discipline and simplification.”
Hargreaves Lansdown analyst Derren Nathan said: “Structurally lower oil prices are causing the majors to look at their options, but given Shell's superior asset quality and balance sheet, any combination may be difficult for its shareholders to stomach.
“Cherry picking some flagship assets could be another option, but that's unlikely to satisfy BP investors. For now, the focus for Shell is likely to remain on buying back its own shares.”
FTSE 100 seen lower, Nvidia shares at record high
07:02 , Graeme EvansNvidia shares last night rose 4% to close at a record high as the semiconductor giant became the focus of an otherwise mixed session for US markets.
The shares closed at $154.31 for a market capitalisation of $3.77 trillion, placing Nvidia just ahead of Microsoft as Wall Street’s most valuable company.
The tech-focused Nasdaq Composite rose 0.3%, the S&P 500 finished flat and the Dow Jones Industrial Average slipped 0.3%.
In Asia, the Nikkei 225 capitalised on the tech sector momentum with a rise 1.6% to a four-month high, whereas the Hang Seng index lost 0.8%.
The FTSE 100 index lost 0.5% in yesterday’s session and is forecast to open about 0.1% lower this morning.
