12th Feb 2026 12:18
(Alliance News) - Stock prices in London were slightly higher at midday on Thursday, with the FTSE 100 hitting another fresh record in a broad equities rally, helped by a blockbuster offer to acquire Schroders.
The FTSE 100 index was up 10.18 points, 0.1%, at 10,481.66. The FTSE 250 was up 67.84 points, 0.3%, at 23,485.33, and the AIM all-share was up 1.95 points, 0.3%, at 817.24.
The Cboe UK 100 was marginally higher at 1,046.27, the Cboe UK 250 was up 0.2% at 20,793.16, and the Cboe small companies was up 0.1% at 18,691.34.
In European equities on Thursday, the CAC 40 in Paris was up 0.7%, while the DAX 40 in Frankfurt advanced 1.3%.
Sentiment on the continent was buoyed as Germany and France signalled unity in efforts to revive Europe's struggling economy. German Chancellor Friedrich Merz and French President Emmanuel Macron struck a conciliatory tone as they arrived at a meeting of EU leaders at Alden Biesen Castle in eastern Belgium.
"We want to speed up the EU, we want to make it better, and we want to ensure that we have a competitive industry in Europe," said Merz, as he arrived at a meeting of EU leaders on Thursday.
The talks at the Alden Biesen Castle close to Rijkhoven in eastern Belgium focuses on how to respond to stifling global competition and take on internal challenges to unlock growth.
Despite previous public disagreements – with Berlin favouring less red tape and Paris advocating joint debt and a stronger "Buy European" push – both leaders stressed urgency. Macron said Europe must act at "a new scale and new speed" to avoid fragmentation and decline, while Merz said the two were "in agreement on these issues".
A key focus is harmonising capital markets across the EU, though past efforts to streamline financial rules have proven challenging.
In currency markets, the pound was quoted at USD1.3644 at midday in London, compared to USD1.3640 at the equities close on Wednesday. The euro stood at USD1.1882 against USD1.1861, while the dollar traded at JPY153.25, down from JPY154.23.
Data showed the UK economy grew 0.1% in the fourth quarter of last year, according to the Office for National Statistics. Monthly growth also came in at 0.1% in December, with November's figure revised down to 0.2% from 0.3%. For 2025 as a whole, GDP rose 1.3%, up from 1.1% in 2024, which the ONS described as a year of "subdued growth".
Schroders delivered the standout performance, surging 29% after agreeing to an all-cash takeover by Pantheon LLC, a subsidiary of Chicago-based Nuveen LLC.
The offer values the London-based fund manager at up to GBP9.9 billion on a fully diluted basis, compared with a pre-open market capitalisation of GBP7.36 billion.
Shareholders will receive 590 pence per share in cash plus permitted dividends of up to 22p, implying a total value of up to 612p per share – a 34% premium to Wednesday's closing price of 456p.
The deal, expected to complete in the fourth quarter of 2026 subject to regulatory approvals, already has acceptances representing 42% of Schroders' shares. Upon completion, Schroders will delist from London, though the group said any future IPO of the combined business could include London as a dual listing venue.
Relx edged up 0.1% after reporting higher revenue and profit in 2025 and forecasting continued "positive momentum" in 2026. The business information group raised its annual dividend by 7% and committed to further share buybacks.
Chief Executive Erik Engstrom sought to reassure investors that artificial intelligence is an opportunity rather than a threat, saying AI has been embedded across its products for over a decade to enhance value and efficiency.
Dan Coatsworth, head of markets at AJ Bell, commented: "Relx's message on AI is loud and clear – it's an opportunity, not a threat. It has deployed AI across its own business to become more efficient and to benefit clients.
"However, there still feels a sense of trepidation among investors about third party AI disruption, given a muted share price reaction to the results. That is despite the company ticking all the right boxes on revenue, profit and dividend growth."
On the FTSE 250, Funding Circle rose 3.2% after unveiling a new GBP700 million forward flow commitment backed by Waterfall Asset Management, with senior financing from Citigroup.
Waterfall will also acquire an existing GBP120 million loan portfolio, strengthening funding for Funding Circle's shorter-term loan product.
These two elements "bring direct funding to Funding Circle's shorter term loan product," the company explained.
Among smaller caps, Pri0r1ty Intelligence climbed 7.7% after launching Vox, an AI-powered voice agent for inbound and outbound customer calls, and securing a contract with Property Buying Company.
The firm expects Vox to generate around 10,000 outbound sales calls in its first month for the new client and said the rollout supports its scalable, data-driven growth strategy.
New Frontier Minerals fell 9.1% after entering a binding option and staged earn-in agreement to acquire up to a 90% interest in the Pomme rare earth and niobium project in Quebec.
The deal includes AUD100,000 in cash and AUD200,000 in shares upfront, with further milestone payments and minimum expenditure commitments.
Stocks in New York were called higher, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all seen up 0.3% ahead of US initial jobless claims, where consensus stands at 222,000 versus 231,000 the previous week, and US existing home sales, expected at 4.15 million in January compared with 4.35 million in December.
The yield on the US 10-year Treasury was quoted at 4.17%, unchanged from Wednesday. The yield on the US 30-year Treasury was quoted at 4.80%, narrowing from 4.81%.
In commodities, Brent oil was quoted at USD69.15 a barrel at midday in London, down from USD69.82 late Wednesday. Gold was quoted at USD5,067.70 an ounce, higher against USD5,055.15.
Elsewhere, Irish industrial production fell 1.7% on-quarter in the fourth quarter of 2025, according to the Central Statistics Office, though output was 7.2% higher on-year. Manufacturing turnover dropped 9.6% on-quarter and 10% on-year. The modern sector recorded a 9.5% annual increase in production, while the traditional sector saw a 3.6% decline.
Still to come on Thursday's economic calendar are US weekly jobless claims, Germany's current account and US existing home sales.
By Eva Castanedo, Alliance News reporter
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SchrodersFunding CircleRelxNew Frontier MineralsPri0r1ty Int