The Ftse 100 is edging closer to a new record high despite the UK economy’s gross domestic product (GDP) growth rising by only 0.1 per cent between October and December 2025.
Figures from the Office for National Statistics (ONS) found Britain’s economic growth last year came in at 1.3 per cent, with real GDP per head slipping by 0.1 per cent in the last quarter.
In Q3 2025, the services sector posted no growth, while production rose by 1.2 per cent and the construction sector slipped by 2.1 per cent in a blow to Chancellor Rachel Reeves’s economic agenda.
Despite this, the UK’s primary stock market index rose above 10,500 points for the first time this morning as traders reviewed a surprise £9.9billion Schroders takeover by US investment giant Nuveen.
The Ftse 100 is eying a new heigh
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This new record from the Ftse 100 was primarily reached thanks to stronger Rolls-Royce and Rio Tinto shares, and a calmer market response to the results of AI-disruption stock Relx.
Both the LexisNexis and Elsevier journals business posted a trademark performance and projected strong growth in revenue and operating profit for the rest of the year.
According to Relx, AI will be a key driver of its growth for many years to come, helping shares add 10.4p to 2023.4p.
Ben Jones, a senior lead economist at the Confederation of British Industry, shared: “A softer-than-expected end to last year comes as little surprise given the pressures many businesses experienced throughout the year: uneven demand, rising costs and persistent uncertainty that led key hiring and investment decisions to be deferred.
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“Growth last year leant heavily on public spending; the challenge now is to get private sector demand firing too. That depends both on households feeling able to spend more freely and on determined action to remove blockers to investment.
“Stability remains vitally important if we’re to build momentum across the economy and is a key part of the UK’s pitch to investors at home and abroad.
“However, stability alone will not give firms the confidence required to press go on critical investments that deliver growth, jobs and opportunity across all parts of the country. The Spring Forecast should be a critical delivery moment for the government’s growth mission.
“Businesses want to see Government take action to speed up relief for high industrial energy costs, collaborate with firms to find appropriate landing zones for the Employment Rights Act, and make real progress on tax simplification to ease the cost of doing business.”
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Nueeen claims acquiring Schroders will have significant benefits to the UK as a global financial centre, and improve London’s position in global asset and wealth management, according to the firm.
Any potential plans to list Schroders or the combined group in the future would involve the London Stock Exchange as one of the dual listing destinations, it said. The deal, subject to the approval of regulators, is expected to be completed during the final three months of 2026.
Richard Oldfield, Schroders chief executive, 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 transaction will significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach and a strengthened balance sheet.”