12th Feb 2026 09:27
(Alliance News) - Stock prices in London opened higher on Thursday, with the FTSE 100 touching a fresh record as investors digested modest UK fourth-quarter GDP growth and a blockbuster takeover approach for Schroders.
The FTSE 100 index opened up 43.07 points, 0.4%, at 10,516.57. The FTSE 250 was up 33.52 points, 0.2%, at 23,450.88, and the AIM all-share was up 2.19 points, 0.3%, at 817.48.
The Cboe UK 100 was up 0.4% at 1,049.94, the Cboe UK 250 was marginally higher at 20,765.18, and the Cboe small companies was up 0.1% at 18,688.36.
Official data showed the UK economy eked out modest growth at the end of 2025.
According to the Office for National Statistics, real GDP rose 0.1% in the fourth quarter from the third, matching the prior quarter's expansion, but falling below FXStreet-cited consensus of 0.2% growth.
Annual growth in the fourth quarter stood at 1.0%, slowed from 1.2% in the third quarter which was revised down from 1.3%.
For 2025 as a whole, the economy grew 1.3%, up from 1.1% in 2024. However, back in November on the day of the UK government budget release, the Office for Budget Responsibility expected UK GDP growth of 1.5% for 2025.
Monthly figures showed GDP increased 0.1% in December, in line with forecasts, after November growth was revised down to 0.2% from 0.3%.
Industrial production declined 0.9% in December, and manufacturing output fell 0.5% on the month. The UK's goods trade deficit widened to GBP22.72 billion in December, broadly matching expectations.
Danni Hewson at AJ Bell described growth as "subdued, sluggish, and slow".
He added: "Whilst the chancellor can celebrate the fact the UK enjoyed the fastest growth of any European G7 country last year and that growth was a smidgeon higher than in 2024, she does have to bear responsibility for the choices made and the timing of her last budget. The service sector, which is often the powerhouse of the UK economy, has struggled to deal with reduced confidence which was exacerbated by the months of speculation and pitch rolling ahead of last year's unusually late budget."
Sterling was quoted at USD1.3639 early Thursday, slightly lower than USD1.3640 at the London equities close on Wednesday. The euro traded at USD1.1885, higher than USD1.1861, while the dollar fell to JPY152.87 from JPY154.23.
Schroders surged 29% to top the FTSE 100 after agreeing to a recommended all-cash takeover by Pantheon LLC, a subsidiary of Chicago-based asset manager Nuveen.
The deal values the London-based fund manager at up to GBP9.9 billion on a fully diluted basis, with shareholders set to receive 590p 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 close.
The transaction is expected to complete in the fourth quarter of 2026, subject to regulatory approvals, and Schroders' shares will cease trading in London upon completion, though a future IPO could see London as a dual listing venue.
Separately, Schroders reported 2025 results, with assets under management rising 6% to GBP823.7 billion and adjusted operating profit up 25% to GBP756.6 million. Statutory pretax profit increased 21% to GBP673.8 million.
Among the biggest fallers, Unilever slipped 2.0% after reporting 2025 pretax profit of EUR8.69 billion, up from EUR8.37 billion, despite turnover falling 3.8% to EUR50.50 billion due to disposals and currency headwinds. It declared a EUR0.4664 interim dividend and announced a EUR1.5 billion share buyback.
Its recently spun-off Magnum Ice Cream business reported pretax profit of EUR447 million, down from EUR747 million on flat revenue of EUR7.9 billion, with shares in Magnum down 14%.
British American Tobacco shares edged down 1.0% after reporting higher 2025 profit and guiding revenue and earnings growth for 2026 at the lower end of its medium-term targets. Revenue fell 1.0% to GBP25.61 billion, though rose 2.1% at constant exchange rates. Reported pretax profit climbed to GBP9.86 billion, and the company increased its dividend 2.0% while outlining plans for a GBP1.3 billion share buyback in 2026.
In European equities, the CAC 40 in Paris rose 1.0% and the DAX 40 in Frankfurt gained 0.9% as EU leaders prepared to gather in Belgium to discuss ways to strengthen the bloc's competitiveness amid rising pressure from China and the US.
European Commission President Ursula von der Leyen stressed the urgency of boosting investment and simplifying rules, while French President Emmanuel Macron renewed calls for joint EU debt to compete more effectively on the global stage.
In Asia, the Nikkei 225 ended marginally lower. The Shanghai Composite closed up 0.1%, while the Hang Seng fell 0.7%. The S&P/ASX 200 in Sydney added 0.3%.
In the US on Wednesday, the Dow Jones Industrial Average slipped 0.1%, the S&P 500 was marginally lower and the Nasdaq Composite fell 0.2%. The yield on the US 10-year Treasury edged up to 4.18%, while the 30-year stood at 4.81%.
Back in London, Morgan Sindall topped the FTSE 250, up 6.0%, after saying 2025 performance was in line with expectations and guiding 2026 results ahead of forecasts following a record year. The group's secured orderbook and preferred bidder work rose 17% to GBP19.1 billion.
Greencore fell 5.1%, while THG rose 0.7% after announcing that its Myprotein brand had agreed a licensing partnership with Greencore to launch protein-enriched salads and wraps in Sainsbury's stores. THG said licensing deals drove sales of more than 43 million Myprotein units into retail in 2025 and it expects to exceed 60 million in 2026.
Brent oil was quoted at USD69.71 a barrel early in London on Thursday, slightly lower than USD69.82 late Wednesday. Gold was quoted at USD5,067.10 an ounce, higher against USD5,055.15.
Still to come on Thursday's economic calendar are Ireland industrial production, US weekly jobless claims, Germany's current account and US existing home sales.
By Eva Castanedo, Alliance News reporter
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UnileverSchrodersBritish American TobaccoGreencoreMorgan Sindall GroupThgSainsbury's