The FTSE 100 reached a fresh record high on Thursday, buoyed by a surge in Schroders PLC shares after the asset manager agreed to a £9.9 billion all-cash takeover by U.S. firm Nuveen. The blue-chip index rose 0.1% as of 1200 GMT, while the pound gained 0.2% against the dollar to 1.3649. Gains were supported by strong earnings reports across major UK companies.

UK economic data showed modest growth in December, with GDP increasing by just 0.1%, down from November's revised 0.2% expansion. For the fourth quarter of 2025, the economy grew 0.1%, unchanged from the previous quarter, resulting in annual growth of 1.0% for 2025, slightly below 2024's 1.1%. The Schroders-Nuveen deal will create a group managing nearly $2.5 trillion in assets.

Other corporate highlights included Relx PLC gaining 0.2% after reporting 7% revenue growth to £9.59 billion and 9% profit growth to £3.34 billion. British American Tobacco PLC shares fell 1.8% despite beating sales expectations with 2.1% organic growth. Ashmore Group Plc rose 0.6% after profit before tax jumped 64% to £81.9 million, while Unilever PLC declined 1.7% despite meeting sales targets and announcing a €1.5 billion share buyback.