The UK’s FTSE 100 reached a new high on Thursday, as money manager Schroders experienced a surge exceeding 30% following its acquisition by U.S. firm Nuveen. Meanwhile, data indicated that Britain’s economy experienced minimal growth in the final quarter of 2025. Schroders’ shares, opens new tab jumped as much as 31% to their highest in more than four years after U.S. asset manager Nuveen agreed to buy the company for 9.9 billion pounds ($13.5 billion) in one of Europe’s largest fund management deals. It was the leading performer on the blue-chip FTSE 100, which reached an intraday record before experiencing a slight decline. The index experienced an increase of 0.1% at 1137. The FTSE 250 mid-cap index rose 0.2%.

In contrast to the broader gains, Unilever dipped 1.1% after warning that 2026 sales growth would likely hit the bottom of its forecast range following a slowdown in the U.S. and Europe. British American Tobacco dropped 2.3% after announcing job cuts and full-year results. Broader macro signals were also in focus as the GDP release indicated that the economy expanded by a mere 0.1% in the fourth quarter, aligning with the growth rate of the previous quarter and partially reflecting the uncertainty leading up to finance minister Rachel Reeves’ November budget.

Thursday’s figures revealed a significant downward revision to monthly GDP alongside a nearly 3% decline in business investment, largely influenced by fluctuating transport expenditures. This data reinforces the prevailing investor sentiment that the Bank of England is increasingly expected to implement another rate cut in March.

Among other movers, Morgan Sindall climbed 4.6% to top the mid-cap index after the construction firm forecast 2026 results ahead of estimates as its orderbook rose 17% entering the year. Shares of pest-control firm Rentokil Initial fell 4.2% as U.S. peer Rollins missed Wall Street estimates for fourth-quarter revenue and earnings.