Shell has addressed recent reports suggesting they were lining up an offer for BP with a statement issued on Thursday squashing speculation of a mega deal.

Shell said in a statement:

‘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.’

The oil major continued to say it ‘confirms it has no intention of making an offer for BP’.

There has been little market reaction to the media reports or Shell’s subsequent statement. BP shares were flat at the time of writing on Thursday.

The deal, should it hypothetically go ahead in the future, would be one of the biggest M&A transactions between London-listed companies in history. It would also further reduce the number of major global companies listed in London by combining two of them at a time when London is struggling to maintain its appeal to multinational companies.

“Shell has denied media speculation of early talks to buy rival BP. 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,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“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.”

GSTechnologies is the latest company to adopt a Bitcoin Treasury Policy as London-listed firms race to emulate the strategies of US groups such as MicroStrategy, which have long held bitcoins on their balance sheet.

The company’s directors believe Bitcoin offers liquidity comparable to cash whilst serving as a reliable store of value. They say the policy will reduce counterparty and exchange rate risks while potentially boosting shareholder returns.

GSTechnologies’ decision to adopt a Bitcoin Treasury Policy makes more sense than most as the move aligns with GST’s GS Money strategy and its operation of the Bake Cryptocurrency Platform, which it acquired earlier this year.

As a digital asset services specialist, the company says it is well-positioned to integrate Bitcoin into its corporate treasury and strengthen its position in the blockchain economy.

GST clearly has operational exposure to cryptocurrency. Some would question whether a Bitcoin treasury suits the business models of some of the other companies that have adopted them in recent weeks.

GSTechnologies shares rose 25% on Wednesday as the bitcoin treasury trade rotated into the stock.

“We continue to make significant progress with the Group’s GS Money strategy, including the advancement of the Bake Cryptocurrency Platform acquired at the beginning of the year,” said Tone Goh, Chairman of GST.

“Holding a significant proportion of the Company’s cash resources in Bitcoin makes perfect sense given the Group’s operations and the services it is providing to its clients.  We are excited about the potential for Bitcoin to enhance shareholder value while reinforcing our leadership in the digital asset space.”

Halfords issued a very respectable set of preliminary results on Wednesday, reflecting delivery on their strategy and success in fighting off the impact of inflation.

Underlying profit before tax rose 6.4% to £38.4m—beating analyst guidance as group sales rose 2.5% on a like-for-like basis.

Halfords shares were marginally higher at the time of writing. The stock is up 30% year-to-date.

The Autocentres division showed particular strength, with underlying EBIT up 21.2% to £18.3m reflecting successful “Better Buying” initiatives, robust growth in Service, Maintenance and Repair activities, and productivity improvements. Autocentre revenue actually fell during the year, underscoring the impact of the efficiency drive.

The company ended the year with net cash on its balance sheet and increased its total dividend by 10% to 8.8p.

The company said they had started the year in line with expectations and were planning further measures to deal with inflation.

“Halfords has become the latest retailer to issue a cautious update on the outlook for consumer spending, which comes despite its steady expansion into the higher-margin car servicing business,” said Chris Beauchamp, Chief Market Analyst at IG.

“The rise in earnings for the autocentre division suggests the new CEO appointment is bearing fruit. Overall today’s numbers seem to provide the justification for the recent share price bounce to the current eighteen-month highs.”

Distribution specialist Bunzl has confirmed trading remains on track with expectations ahead of its half-year results, though the company warned operating margins will fall short of last year’s performance.

The FTSE 100 group expects revenue for the six months to 30 June to rise approximately 4% as acquisitions drive revenue higher. Underlying sales remain broadly flat.

Operating margins are set to hold steady at around 7.0% for the half-year, matching previous guidance. This represents a continuation of pressure on profitability that has weighed on the business in recent quarters.

Looking ahead to the full year, Bunzl maintained its cautious outlook after a warning earlier this year.

While the expects moderate revenue growth in 2025, operating margins are forecast to slip “moderately below” 8.0% for the year, down from 8.3% achieved in 2024. This will be a mild concern for investors, but won’t be a shocok given current inflationary conditions.

“After a shock profit warning in April amid North American weakness, investors are relieved that life hasn’t got any worse for Bunzl,” said AJ Bell investment director Russ Mould.

“The distributor is normally devoid of any drama, simply getting on with the task of delivering essential goods that companies need to do business, but not products they sell to their end customer.

“Rubber gloves, takeaway coffee cups, cling film; the products Bunzl supplies are the sort of things people take for granted. Its fortunes are closely tied to the global economy – if the world is ticking over then Bunzl will be busy but if there is economic weakness it will find life harder.

“Uncertain macroeconomic conditions mean that investors retain a sense of caution towards Bunzl. The shares are only up because there is no further bad news following the recent profit warning, rather than the market becoming more optimistic.”

Management highlighted that second-half margins typically improve due to seasonal factors and should benefit from remedial actions already taken.

The FTSE 100 spiked higher on Tuesday after Iran and Israel announced a ceasefire following a twelve-day conflict.

Oil prices dropped sharply on Tuesday and are now trading back near levels seen before Israel launched strikes on Iranian nuclear facilities in early June. 

The ceasefire was announced after Iran launched a dramatic retaliatory strike on a US airbase in Qatar, which didn’t cause any casualties.

Iran’s attack on Qatar meant Iran didn’t lose face while avoiding wider escalation. Donald Trump even thanked Iran in a social post after Iran warned the US of the impending strike.

With the worst of the conflict behind us, markets breathed a sigh of relief and London’s leading index spiked 0.5% higher in early trade.

“Risk assets are back on the menu after President Trump announced a ceasefire has been brokered between Israel and Iran. The details may still be a little up in the air, but global stock markets are pushing higher as a result,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

Cracks were appearing in the ceasefire on Tuesday with reports of Iran breaking the agreement and Israel promising to strike back. But markets were largely unfazed and remained happy with a broader step down in tensions.

Markets tend to focus on one big issue at a time, and now that Middle East tensions are subsiding, attention will likely shift back to growth and the ongoing battle with inflation.

However, for now, at least, there was a sense of optimism in the market, and 83 of the FTSE 100’s constituents were trading higher at the time of writing.

There were no surprises in the top risers and fallers on Tuesday. 

The falling oil price weighed heavily on BP and Shell, with the two acting to offset gains elsewhere. BP was the FTSE 100’s top faller with a decline of 5%. Shell lost 3%.

Lower oil prices and the prospect of a reduction in disruption to airspaces in the Middle East were welcomed by investors in airlines EasyJet and IAG. Both shares were 6% higher at the time of writing. 

Hotels group IHG shares the positive sentiments and rose more than 3%.

“Defensive stocks, oil producers and precious metals miners were all under pressure in early trading. Gold slipped back as its safe-haven attributes were less in demand. This rather clipped the wings of the FTSE 100 given its relatively heavy weightings in these areas and saw the index underperform its European counterparts,” said AJ Bell investment director Russ Mould.