The FTSE 100 has climbed to record territory, pushing past 10,500 as appetite for London-listed assets gathers pace. The blockbuster £9.9bn acquisition of Schroders by US institutional heavyweight Nuveen underlines how international buyers are hunting for overlooked value in UK companies.
The deal will form a global asset-management giant and, crucially, the combined group will remain headquartered in London — a move that strengthens the City’s standing as a leading hub for wealth and asset management.
Yet the takeover carries a downside. With another major player leaving public markets, it further shrinks the pool of companies listed on the London Stock Exchange. As large international buyers continue snapping up UK firms, investors are left with fewer public-market opportunities, helping explain the growing appeal of private assets.
The transaction caps a turbulent week for the UK’s asset-management sector. It lands just as valuations had weakened amid concerns that artificial intelligence could disrupt traditional business models. Instead, the deal highlights the enduring appeal of British assets, lifting sentiment across wealth managers and banks. Bargain hunters have also stepped in following recent sharp declines.
Support has come from RELX, which helped steady nerves after Tuesday’s sell-off. The data and analytics group reported a 9% rise in operating profit and said wider integration of AI tools would fuel future growth, easing fears that new technologies might erode its revenues.
Despite the rally, the FTSE 100’s performance increasingly feels disconnected from the broader UK economy. December GDP growth came in at just 0.1%, missing expectations and reinforcing the picture of sluggish momentum.
For Prime Minister Keir Starmer, the weak data adds to mounting political and economic pressure. Tepid growth offers little support for the government’s promises to reinvigorate the economy.
There are tentative signs of improvement. Construction has weighed heavily on output, but planning reforms could spark renewed activity, while improving consumer confidence may translate into stronger spending. For now, however, the government’s growth strategy appears to be delivering only modest results.
