London midday: FTSE hits fresh intraday high as Schroders surges on takeover

(Sharecast News) - London stocks were still a little firmer by midday on Thursday after the top-flight index hit fresh highs as news of Schroders' takeover by US investment manager Nuveen distracted investors from uninspring UK growth figures. The FTSE 100 was up 0.1% at 10,483.52, off earlier highs, having hit a new intraday peak of 10,535 earlier.

Data from the Office for National Statistics showed the economy grew by just 0.1% in the final months of 2025, as the services sector stagnated. The 0.1% uptick was unchanged on the third quarter. Expectations for the fourth had ranged from 0.1% to 0.2%.

In output terms, growth was driven by a 1.2% increase in production, including a 0.9% improvement in manufacturing. But that was offset by a 2.1% slide in construction - its largest fall in more than four years - and no growth in the dominant services sector.

It is the first time there has been no growth in services GDP for two years.

In December, GDP rose 0.1% following downwardly revised growth of 0.2% November. Over 2025 as a whole, GDP is estimated to have increased by 1.3%, up from 1.1% in 2024.

Liz McKeown, director of economic statistics at the ONS, said there had been growth across all the main sectors during 2025. "Initial estimates show GDP per head was up on the previous year, despite it contracting slightly in each of the last two quarters," she said.

Dan Coatsworth, head of markets at AJ Bell, noted that the FTSE 100 eked out a new record intraday high "as takeover activity gave a boost to the market".

"UK growth figures were as limp as a piece of wilted spinach," he said. "Chancellor Rachel Reeves' strategy from day one was to get the public finances in order and then grow the economy, but people are growing tired of waiting for part two to kick into gear.

"The UK economy is barely growing yet the stock market hitting new highs might sound an odd pairing. It's important to remember the FTSE 100 is not a direct representation of the UK economy. Approximately three quarters of its members generate their earnings overseas, and so what's happening with GDP only has limited relevance to the direction of the stock market, although it can affect investor sentiment.

"Some of the more domestic-facing names on the FTSE 100 were out of favour, including housebuilders and property stocks but there was enough strength in the heavyweight banking and mining sectors to outweigh these losses."

In equity markets, Schroders rocketed to the top of the FTSE 100 after the asset manager agreed to be taken over by US investment manager Nuveen in a £9.9bn deal.

Nuveen - which is part of the Teachers Insurance and Annuity Association of America - will pay 612p per share. The price comprises a cash consideration of 590p a share and permitted dividends of up to 22p per share. The cash consideration is a 29% premium to the closing share price on Wednesday.

Aberdeen and Man Group also racked up healthy gains.

Ashmore advanced as it posted a 10% jump in first-half assets under management and a 64% increase in pre-tax profit to £81.9m.

Morgan Sindall rallied as it said 2026 results were set to be ahead of expectations thanks to a solid performance from its Fit Out division.

Relx was just a touch higher, having surged earlier in the session as the information group said it expected strong earnings and revenue growth in 2026 after a 9% rise in underlying operating profit last year.

The company - which was recently caught up in a broader selloff of software stocks on worries about AI disruption - said it was embedding extra AI functionality in its products and developing them at a faster pace, while continuing to manage cost growth below revenue growth.

British American Tobacco fell as it said full-year adjusted profit from operations rose 2.3% to £11.3bn, while reported revenue dipped 1%.

Consumer goods giant Unilever lost ground as it said 2026 sales growth was expected to be at the bottom end of its underlying range of 4% to 6%, reflecting slower market conditions.