A US-led £9.9 billion takeover of asset manager Schroders today featured alongside another record-breaking session for the FTSE 100 index.
London’s top flight rose by more than 1% yesterday and traded above 10,500 in today’s session.
Meanwhile, GDP figures dealt a blow to Chancellor Rachel Reeves after Britain’s economy stayed firmly “stuck in a rut” in the fourth quarter.
FTSE 100 Live Thursday
- Schroders backs £9.9bn takeover
- UK GDP in slow lane
- Unilever guidance disappoints
Market update: FTSE 100 sets new intraday high, Unilever and BAT lower
10:12 , Graeme EvansAnother record FTSE 100 session as traders reviewed a shock £9.9 billion Schroders takeover today contrasted with a UK economy stuck in the slow lane.
London’s top flight followed yesterday’s best performance in over a year by adding another 0.,3% or 30.39 points to 10,502.50, having earlier peaked at 10,535.76.
The latest landmark was achieved on the back of stronger Rolls-Royce and Rio Tinto shares, as well as a calm response to the results of AI-disruption stock Relx.
The LexisNexis and Elsevier journals business delivered a trademark performance and forecast strong growth in revenue and operating profit this year.
Relx said AI will be a key driver of its growth for many years to come, helping shares add 10.4p to 2023.4p. However, they were above 3000p less than a month ago.
Asset manager Schroders jumped in line with today’s surprise Nuveen takeover approach, which was pitched at 590p a share or 612p when including dividends.
The cash element is 29% higher than last night’s price but Panmure Liberum said the proposal undervalued recent progress at the family-backed former London merchant bank. Shares rose 130p to 587p.
The tie-up creates one of the world’s largest global active asset managers, with £1.8 trillion of assets under management across institutional and wealth channels.
The Schroders brand will be retained and London will serve as the combined group’s non-US headquarters and largest office.
The developments overshadowed the results of FTSE 100 stalwarts Unilever and British American Tobacco.
The consumer goods group, which owns the Knorr and Dove brands, fell 76p to 5243.1p despite stronger fourth quarter underlying sales growth of 4.2%.
This was better than City forecast of 3.9% but the progress was clouded by 2026 sales growth guidance at the bottom end of Unilever’s multi-year 4-6% range.
Income stock BAT fell 32p to 4394p, but Bank of America reiterated its Buy stance as it said the results reinforced confidence in margins and buybacks.
The UK-focused FTSE 250 index rose 0.5%, despite today’s figures from the Office for National Statistics showing growth of just 0.1% in the final quarter of 2025.
Construction and fit-out firm Morgan Sindall jumped 6% or 300p to 5350p after another upgrade to guidance but property agency Savills dived 7% or 76p to 984p.
Unilever 2026 sales guidance knocks shares
09:13 , Graeme EvansUnilever shares today fell 3% or 174p to 5143p, despite reporting stronger fourth quarter underlying sales growth of 4.2%.
The performance was better than City expectations of 3.9% and followed a rise of 4% in the previous three months.
The beat was offset by guidance for this year that pointed to a sales performance at the lower end of Unilever’s multi-year 4-6% growth range.
The company behind brands including Dove, Knorr and Domestos said this reflected slower market conditions.
Underlying sales growth in 2025 was 3.5%, with 1.5% from volume and 2% from price. It recorded full-year turnover of 50.5 billion euros and an underlying operating profit of 10.1 billion euros, down 1.1% on the previous year.
FTSE 100 tops 10,500 for first time, Unilever down 3%
08:39 , Graeme EvansThe FTSE 100 index today set an intraday record peak of 10,535.76 before settling 20.27 points higher at 10,492.38.
On a busy day for blue-chip results, Relx shares rose 6p to 2019p after annual figures calmed the mood of investors following recent heavy selling.
Hargreaves Lansdown analyst Matt Britzman said: “Relx delivered another characteristically strong set of results.
“Its data and analytics businesses have been in the direct line of fire as new AI tools emerge, but the numbers once again showed a company executing well.”
Unilever fell 3% or 174p to 5143p and British American Tobacco rose 14p to 4440p following the release of their full-year figures.
Schroders “too cheap” as shares jump 29%
08:27 , Graeme EvansSchroders shares have jumped 29% or 133p to 590p after the asset management firm backed an offer of 590p a share plus 22p dividend from Nuveen.
The US-based global investment firm is owned by the Teachers Insurance and Annuity Association of America, one of the world’s largest institutional investors.
Former London merchant bank Schroders dates back 220 years. It listed on the London stock market in 1959 and sold its investment banking arm in 2000 in order to specialise in asset and wealth management.
Panmure Liberum regards the offer price as “too cheap” and said the total of 612p was only a touch ahead of the 600p a share it might have pitched its target price in an independent world.
It said: “Who would ever have believed in Schroders being bid for? Certainly not us for most of the last three and half decades.”
The City firm said a new management team had achieved much over the past 15 months in order to reinvigorate the business.
It added: “We fear that the offer came too soon in the process of change, and another year of the kind of change seen already in 15 months might have put the share price in a different starting place.”
Relx profit up 9%, backs AI growth prospects
07:43 , Graeme EvansAnalytics and decision tools business Relx today reported a 9% rise in operating profit, adding that AI will be a key driver of its growth for many years to come.
The LexisNexis and Elsevier journals business has suffered a sharp slump in its FTSE 100 value after Anthropic launched an AI-driven legal tech services tool.
Posting annual results for 2025, Relx lifted revenues by an underlying 7% to £9.59 billion for an operating profit of £3.3 billion. The dividend has risen 7% to 67.5p a share.
The group forecast another year of strong underlying growth in revenue and adjusted operating profit in the year ahead.
Chief executive Erik Engstrom said: “The continued evolution of artificial intelligence is enabling us to add more value to our customers, as we embed additional functionality in our products, and to develop and launch products at a faster pace, while continuing to manage cost growth below revenue growth.
“This evolution has been a key driver of our business for well over a decade, and will remain a key driver of customer value and growth in our business for many years to come.”
UK growth seen at 1.3% in 2025, up 0.1% in December
07:18 , Graeme EvansThe UK economy barely grew in December and the fourth quarter of 2025, according to the Office for National Statistics.
The growth rates of 0.1% mean that GDP is estimated to have increased by 1.3% annually in 2025, following growth of 1.1% in 2024.
Liz McKeown, ONS Director of Economic Statistics, said the often-dominant services sector showed no growth in the final quarter of 2025, with the main driver instead coming from manufacturing.
Construction, meanwhile, registered its worst performance in more than four years.
She added: “The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.
“Initial estimates show GDP per head was up on the previous year despite it contracting slightly in each of the last two quarters.”
Schroders backs £9.9bn takeover offer
07:10 , Graeme EvansFTSE 100-listed asset management firm Schroders today said its board had backed a £9.9 billion takeover offer from American investment firm Nuveen.
The move creates one of the world’s largest global active asset managers, with £1.8 trillion of assets under management across institutional and wealth channels.
The Schroders brand will be retained and London will serve as the combined group’s non-US headquarters and largest office.
The proposed deal values each Schroders share at 612p, including dividends of 22p. The cash component of 590p is a 29% premium to last night’s price and 42% higher than the three-month average.
Schroders chief executive Richard Oldfield said: "In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people.”
The sale will mean the founding billionaire Schroder family, which still controls more than 40% of the shares, either directly or through trusts, will collect around £4 billion cash.
FTSE 100 run set to continue, US markets mixed
07:00 , Graeme EvansThe FTSE 100 index is set to follow its best session in more than a year by opening above 10,500 for the first time.
Yesterday’s outperformance resulted in London’s top flight closing 1.1% or 118.27 points higher at a record 10,472.11. In contrast, the UK mid-cap FTSE 250 index benchmark fell 0.2% at 23,416.54
The FTSE 100 set an intraday high of 10,493.83 and is forecast to add another 0.3% or 35.9 points at the opening bell, according IG futures.
A pushback against US interest rate cut expectations, following the release of strong nonfarm payroll figures, meant a mixed session for Wall Street markets.
The Dow Jones Industrial Average fell 0.1% and the Nasdaq Composite lost 0.2%, while the S&P 500 finished broadly flat.
Gold is today slightly lower at $5068 an ounce, while the pound stood at $1.3624 prior to the release of fourth quarter GDP figures.
