Business news live: FTSE 100 latest after Shell reject BP takeover bid reports

While the FTSE 100 and DAX both fell yesterday, one notable outlier was Babcock International, which rose more than 11 per cent.

Part of that was doubtless increased profit and the announcement of a share buyback, but the defence firm will also stand to potentially benefit in future after Nato leaders confirmed greater spending in that area in future.

“The rare bright spots in both the UK and Germany were defence stocks after NATO leaders confirmed they would spend 5% of GDP on defence and security by 2035. That was enough for investors to pile into the defence sector once again, even though considerable share price gains have already been made across the board. NATO’s commitment suggests a big opportunity for defence contractors to grow their earnings well into the future,” said Dan Coatsworth, investment analyst at AJ Bell.

Almost three-quarters of retail investors (72 per cent) say that removal of stamp duty would do more to incentivise buying UK shares – while fewer than one in 12 (7 per cent) said reducing the Cash Isa allowance would do the same.

The revelation comes as battle rages over Isa reform, with the government’s potential approach of reducing the amount people can save tax free looking ever-more unlikely to have the desired impact of improving investment.

Richard Wilson, CEO of interactive investor, said: “ISA reform is only one piece of the puzzle. If DIY investors are to be the boost to the UK stock market that the chancellor thinks they can be, she also needs to make UK stocks and shares more investable.

“Stamp duty on UK shares and investment trusts is an outdated and damaging tax from a bygone era that serves only to undermine the competitiveness of the UK stock market. At 0.5%, it penalises investors for backing British businesses, making the UK a less attractive place to invest compared to global peers.

“At a time when we should be encouraging investment in British companies and improving market liquidity, this tax does the exact opposite – driving capital elsewhere and draining liquidity from the market.”

Yesterday evening, reports emerged from the Wall Street Journal that Shell was in early talks over a possible bid to take over FTSE oil rival BP.

Shell’s statement refuted that, saying they were focused on their own growth rather than acquisitions.

A British mega-oil merger has been speculated about this year due to BP’s underperformance.

Let’s start with a quick roundup of all the biggest lines over the last 24 hours.

Good morning one and all – we’re back for another day’s live coverage of the business and finance world here on The Independent.

Coming up, the reaction to overnight stock markets across the US and Asia, plus what’s ahead for the new trading day starting after losses yesterday for the UK and Europe.