ADVFN UK Market News

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  • European equities hit fresh highs as earnings momentum offsets soft UK growth: DAX, CAC, FTSE100

    European equities hit fresh highs as earnings momentum offsets soft UK growth: DAX, CAC, FTSE100

    European markets climbed to new record levels on Thursday, buoyed by a strong wave of corporate results from major names including Legrand, Hermes and Siemens.

    Investors largely brushed aside weaker-than-expected U.K. growth data. Britain’s economy expanded by 0.1% quarter-on-quarter in the fourth quarter, matching the previous period but falling short of forecasts for 0.2% growth, as business investment declined and the services sector showed little momentum.

    On an annual basis, GDP rose 1.0%, below economists’ expectations of 1.2%.

    In market action, the U.K.’s FTSE 100 hovered around flat territory, while France’s CAC 40 advanced 1.0% and Germany’s DAX gained 1.4%.

    Among individual stocks, Legrand (EU:LR) rallied after the French electrical and digital infrastructure specialist increased its dividend and unveiled a 2026 revenue growth target of 10–15% at constant exchange rates.

    Luxury house Hermes International (EU:RMS) also posted solid gains following another quarter of consistent revenue expansion.

    Schroders (LSE:SDR) surged after agreeing to a £9.9 billion acquisition by U.S.-based asset manager Nuveen, a move that significantly boosted its share price.

    Siemens (TG:SIE) jumped as well, with the German engineering group lifting its fiscal 2026 adjusted earnings outlook and reaffirming its revenue growth expectations after delivering first-quarter results ahead of forecasts.

    EssilorLuxottica (EU:EL) climbed sharply after reporting an 18% increase in fourth-quarter sales, supported by strong demand for AI-enabled eyewear.

    Ipsen (EU:IPN) advanced following robust 2025 results and an upbeat forecast for 2026 performance.

    In London, British American Tobacco (LSE:BATS) edged higher after posting a 2.3% rise in annual profit and announcing plans for a £1.3 billion share buyback in 2026.

    On the downside, Unilever (LSE:ULVR) slipped despite reporting 3.5% underlying sales growth in 2025, while Swisscom (TG:SWJ) declined after posting lower full-year net income for 2025.

  • FTSE 100 Sets New High as Schroders Surges; UK GDP Shows Tepid Growth

    FTSE 100 Sets New High as Schroders Surges; UK GDP Shows Tepid Growth

    London’s benchmark FTSE 100 climbed to a record level on Thursday, supported by a sharp rally in Schroders plc (LSE:SDR) after it agreed to a takeover by U.S.-based Nuveen, while fresh economic data pointed to modest UK growth at the end of last year.

    By 1200 GMT, the blue-chip index was up 0.1%. Sterling strengthened 0.2% against the dollar to 1.3649. On the continent, Germany’s DAX advanced 1.3% and France’s CAC 40 gained 0.8%.

    UK economy posts slight December expansion

    Official figures showed the UK economy expanded by 0.1% in December, easing from a revised 0.2% increase in November. For the fourth quarter of 2025, GDP rose 0.1%, matching the pace recorded in the third quarter. That left full-year growth at 1.0% for 2025, marginally below the 1.1% registered in 2024.

    Schroders rallies on Nuveen deal

    Shares in Schroders jumped about 28.6% after the fund manager accepted a £9.9 billion all-cash offer from Nuveen, creating an investment group overseeing close to $2.5 trillion in assets.

    The company also unveiled strong annual results. Adjusted operating profit climbed 25% to £756.6 million for the year to December 31, up from £603.1 million the previous year. Statutory profit before tax increased 21% to £673.8 million, while adjusted basic earnings per share rose 29% to 36.6 pence.

    Earnings in focus

    RELX plc (LSE:REL) edged 0.2% higher after posting solid 2025 figures, with underlying revenue up 7% to £9.59 billion and adjusted operating profit rising 9% to £3.34 billion. Operating margin improved to 34.8% from 33.9%.

    British American Tobacco (LSE:BATS) reported a slight beat for its 2025 financial year, delivering organic sales growth of 2.1%, ahead of the 1.9% consensus estimate. The group reiterated guidance at the lower end of its medium-term range, and its shares slipped 1.8% in afternoon trade.

    Ashmore Group plc (LSE:ASHM) posted a 64% rise in pre-tax profit to £81.9 million for the six months to December 31, 2025, as assets under management increased 10% to $52.5 billion. The stock added 0.6%.

    Meanwhile, Unilever plc (LSE:ULVR) fell 1.7% despite meeting full-year sales expectations at €50.50 billion and announcing a €1.5 billion share buyback. Analysts flagged concerns over whether the group can deliver on its 2026 margin and growth ambitions.

  • European Shares Advance on Earnings Wave; Mercedes Flags Pressure Ahead: DAX, CAC, FTSE100

    European Shares Advance on Earnings Wave; Mercedes Flags Pressure Ahead: DAX, CAC, FTSE100

    European equities moved higher on Thursday as investors digested a heavy flow of corporate results alongside fresh U.K. economic data.

    By 08:10 GMT, Germany’s DAX was up 1%, France’s CAC 40 had added 1.4% and London’s FTSE 100 was 0.4% firmer.

    Earnings dominate sentiment

    Results from several of Europe’s largest companies for the final quarter of 2025 were in focus. While the outlook for corporate performance has improved somewhat, LSEG data still point to a contraction in fourth-quarter earnings across the region—potentially marking the weakest showing in seven quarters.

    “Europe lacks the AI-driven growth engines powering the U.S., but investors are focusing on the cyclical earnings recovery,” analysts at Lombard Odier said in a note. “We expect earnings growth to rise from -3.5 in 2025 to 9% in 2026, slightly below consensus.”

    “Almost 25% of corporates have reported, with blended earnings growth – the combination of estimated and reported growth so far – close to 5%. Companies are struggling with the effects of a strong euro and uneven demand.”

    Among the day’s movers, Mercedes-Benz Group (TG:MBG) slid after posting a 57% drop in 2025 earnings and a 9% decline in revenue. The luxury carmaker warned that margins in its automotive division could weaken further this year, citing elevated costs, softness in China and global tariff pressures.

    By contrast, Hermès (EU:RMS) reported another robust quarter, with fourth-quarter revenue rising 9.8% at constant exchange rates, ahead of expectations for 8.4%. Sales in the Americas climbed 12.1%, outpacing forecasts of around 9%.

    Unilever plc (LSE:ULVR) also topped estimates for underlying fourth-quarter sales growth, driven by strong demand for brands such as Dove and Vaseline, although the group cautioned that slower market conditions could weigh on performance in 2026.

    British American Tobacco plc (LSE:BATS) posted a 2.3% increase in annual profit as its Velo nicotine pouches gained traction and newer vaping and heated tobacco products expanded sales.

    Thyssenkrupp AG (TG:TKA) exceeded expectations in the first quarter, with adjusted EBIT of €211 million, helped by a solid contribution from its Steel Europe division.

    Anheuser-Busch InBev (EU:ABI) delivered 7.5% growth in fourth-quarter underlying earnings, surpassing forecasts as all three Americas regions outperformed on both volume and revenue despite subdued consumer spending.

    Siemens AG (TG:SIE) lifted its full-year outlook after reporting higher first-quarter orders, revenue and operating profit, reflecting broad-based industrial strength.

    In deal news, U.S. asset manager Nuveen agreed to acquire Schroders plc (LSE:SDR) in a transaction valued at just under £10 billion ($13.5 billion), creating a combined entity with close to $2.5 trillion in assets under management.

    U.K. economy inches higher

    Data released earlier showed the U.K. economy expanded by 0.1% in December, slightly slower than November’s 0.2% pace. Quarterly growth for the final three months of 2025 also came in at 0.1%, unchanged from the previous quarter.

    The Bank of England left interest rates unchanged at its first meeting of 2026, following six cuts since August 2024.

    In the U.S., January nonfarm payrolls rose by 130,000, beating expectations of 70,000, while the unemployment rate dipped to 4.3% from a projected 4.4%. The figures reinforced expectations that the Federal Reserve will likely keep rates on hold until at least the latter half of the year.

    Oil edges up on geopolitical tensions

    Oil prices ticked higher amid ongoing friction between Washington and Tehran, fueling concerns over potential supply disruptions.

    Brent crude futures gained 0.4% to $69.69 per barrel, while U.S. West Texas Intermediate rose 0.5% to $64.97. Both benchmarks had climbed about 1% on Wednesday as reports suggested the U.S. could deploy a second aircraft carrier to the region.

    Although recent talks between Iran and the U.S. hinted at limited progress, no comprehensive agreement has been reached regarding Tehran’s nuclear program, keeping energy markets cautious.

  • BAT Raises Shareholder Returns as Smokeless and U.S. Growth Offset Regional Pressures

    BAT Raises Shareholder Returns as Smokeless and U.S. Growth Offset Regional Pressures

    British American Tobacco plc (LSE:BATS) delivered a 2.1% increase in constant-currency revenue to £25.6 billion in 2025, supported by resilient U.S. combustibles and strong momentum in its Velo Plus modern oral nicotine brand. Performance in the APMEA region remained constrained by fiscal and regulatory challenges, but growth in reduced-risk categories helped underpin overall progress.

    Smokeless products accounted for 18.2% of group revenue during the year, while contributions from New Categories rose more than 77%. Profit from operations rose sharply, aided by a movement in Canadian provisions, strengthening cash generation and enabling enhanced shareholder returns. The board increased the dividend, announced a £1.3 billion share buyback and reiterated its medium-term growth ambitions. However, management cautioned that 2026 performance is likely to fall toward the lower end of guidance due to foreign exchange headwinds and continued investment in transformation initiatives.

    From an outlook perspective, positive corporate developments—including capital returns and insider share purchases—support investor sentiment, alongside robust cash flow generation. That said, earnings volatility and a relatively elevated price-to-earnings ratio moderate the overall assessment. Technical indicators remain constructive, while the company’s strategic push into innovation, digital capabilities and reduced-risk products is expected to play a central role in long-term growth. Ongoing market-specific challenges, particularly in certain international regions, remain an area of focus.

    More about British American Tobacco plc

    British American Tobacco plc is a global tobacco and nicotine group whose traditional combustible cigarette business is increasingly complemented by a growing portfolio of smokeless and so-called New Category products. Its brands span vapour, heated tobacco and modern oral nicotine offerings, with a strategic emphasis on expanding reduced-risk revenues in the U.S. and across AME and APMEA regions.

  • Nuveen’s Pantheon Agrees £9.9bn Cash Takeover of Schroders

    Nuveen’s Pantheon Agrees £9.9bn Cash Takeover of Schroders

    Schroders plc (LSE:SDR) has agreed to a recommended all-cash acquisition by Pantheon, a newly established subsidiary of Nuveen, at a price of up to 612p per share, inclusive of permitted dividends. The offer values Schroders’ equity at approximately £9.9 billion on a fully diluted basis and represents a multiple of roughly 17 times 2025 adjusted operating profit. The bid also carries a premium of as much as 61% compared with recent average trading levels.

    The proposed transaction would create one of the largest global active asset managers, overseeing close to $2.5 trillion in assets across institutional and wealth channels. Under the terms of the deal, the Schroders brand will be preserved, and London will remain the group’s principal headquarters outside the United States. Both boards have indicated their intention to unanimously recommend the offer, with completion targeted for the fourth quarter of 2026, subject to regulatory and shareholder approvals.

    Nuveen and Schroders highlighted the strategic logic of the combination, citing complementary investment capabilities across public and private markets, shared cultural values and a mutual commitment to sustainability and innovation. The merger is expected to accelerate Schroders’ growth ambitions, broaden its cross-asset solutions and enhance its ability to serve clients globally. The announcement also noted substantial irrevocable undertakings from major shareholders, strengthening deal certainty.

    From an outlook perspective, Schroders benefits from solid underlying profitability and strategic momentum, supported by a valuation uplift implied by the offer. While technical indicators suggest moderately positive share price momentum, restructuring costs and variability in cash flow remain areas to monitor as the transaction progresses.

    More about Schroders plc

    Schroders plc is a London-based global active asset manager providing investment management and wealth solutions to institutional and retail clients. With a long-standing family-influenced heritage, the firm operates across public and private markets and holds a significant position within the UK and international asset management landscape.

  • Unilever Expands Margins and Repositions Portfolio Following Ice Cream Separation

    Unilever Expands Margins and Repositions Portfolio Following Ice Cream Separation

    Unilever plc (LSE:ULVR) delivered 3.5% underlying sales growth in 2025, supported by a 1.5% increase in volumes and solid performances from its core Power Brands. While reported turnover declined due to currency pressures and prior disposals, the group achieved improved profitability, with underlying operating margin rising to 20.0%. Earnings advanced, free cash flow remained strong, and the board increased the dividend alongside announcing a €1.5 billion share buyback programme.

    A major strategic milestone during the year was the completion of the Ice Cream business demerger, marking a significant step in Unilever’s portfolio transformation. In total, the company executed ten portfolio transactions, sharpening its focus on higher-growth segments such as Beauty & Wellbeing and Personal Care, while exiting selected non-core food assets. These moves are intended to strengthen category leadership and enhance long-term growth prospects.

    Operational adjustments also played a role in performance. The shift toward category-led sales structures and targeted resets in key markets including Indonesia and China contributed to improved execution and firmer emerging market momentum. Looking ahead to 2026, management expects low-end-of-range underlying sales growth and a modest further uplift in margins, even against a backdrop of softer global demand.

    The group’s outlook is underpinned by strong financial delivery and decisive strategic actions, though technical indicators currently suggest weaker share price momentum and valuation metrics appear relatively elevated. Nonetheless, management believes the streamlined portfolio and sharpened category focus position Unilever for sustained competitive strength.

    More about Unilever plc

    Unilever plc is a global consumer goods leader operating across Beauty & Wellbeing, Personal Care, Home Care and Foods. The company holds leading positions in both developed and emerging markets and is increasingly prioritising premium, higher-growth categories and digital commerce. The United States and India remain central pillars of its long-term expansion strategy.

  • TMICC Posts Steady 2025 Sales Growth as Demerger Costs Pressure Earnings

    TMICC Posts Steady 2025 Sales Growth as Demerger Costs Pressure Earnings

    Magnum Ice Cream Co. N.V. (LSE:MICC) reported 2025 revenue of €7.9 billion, delivering 4.2% organic growth supported by a 1.5% increase in volumes and 2.6% pricing uplift. The company said all regions expanded market share during the year, while its leading brands introduced around 150 new products to sustain consumer engagement and category momentum.

    Although top-line performance remained robust, profitability was impacted by costs associated with the group’s separation and restructuring activities. Operating margins and net income came under pressure from one-off demerger expenses, foreign exchange headwinds, new transitional service agreement (TSA) cash charges and higher financing costs following the issuance of an oversubscribed €3 billion bond. A €180 million productivity drive helped mitigate some of these pressures but did not fully offset the incremental expenses tied to becoming a standalone business.

    The demerger, alongside listings in Amsterdam, London and New York, formally established TMICC as an independent, pure-play ice cream company. However, free cash flow declined sharply over the year, reflecting separation-related outflows, capital expenditure and increased interest payments.

    Looking ahead, management maintains that underlying category demand remains resilient, particularly across digital channels and in faster-growing AMEA markets. A €500 million multi-year productivity initiative is expected to support margin recovery, while the company is targeting 3%–5% organic sales growth in 2026 as it strengthens its competitive position in the global ice cream sector.

    More about Magnum Ice Cream Co. N.V.

    Magnum Ice Cream Co. N.V. is a leading global ice cream specialist with a brand portfolio that includes Magnum, Ben & Jerry’s, Cornetto and Heartbrand. The company serves both at-home and out-of-home consumption channels, leveraging digital commerce, extensive retail distribution and an expanding freezer network to grow its presence across Europe, the Americas and AMEA regions.

  • Europa Oil & Gas Expands Retail Fundraise After Strong Shareholder Demand

    Europa Oil & Gas Expands Retail Fundraise After Strong Shareholder Demand

    Europa Oil & Gas (Holdings) plc (LSE:EOG) has increased the size of its WRAP Retail Offer after existing shareholders subscribed multiple times over the initial allocation. The offer, priced at 1.2p per share and accompanied by one warrant for every four shares issued, generated gross proceeds of approximately £641,000 through the issuance of more than 53 million new shares plus attached warrants. To manage dilution, the company scaled back individual applications despite the oversubscription.

    The retail raise sits alongside a separate £3.5 million placing, bringing the total number of new shares to roughly 345 million. If approved at a rescheduled general meeting expected around 3 March 2026, the enlarged share capital will increase Europa’s voting share base to about 1.32 billion shares. Admission of both the placing and retail offer shares to AIM trading is anticipated on or around 5 March 2026, subject to shareholder approval. The WRAP Retail Offer remains conditional on completion of the placing, although the placing itself is not dependent on the retail component.

    The expanded equity base will also reset the benchmark for regulatory disclosure thresholds under UK transparency rules, a key consideration for investors monitoring reportable holdings. Strategically, the combined fundraising is intended to reinforce Europa’s financial flexibility and potentially improve liquidity in its shares.

    From an outlook perspective, the company continues to face financial headwinds, with notable declines in revenue and profitability weighing on performance metrics. However, recent corporate activity and some constructive technical signals provide partial offset, pointing to potential operational momentum ahead. Valuation indicators remain subdued due to ongoing unprofitability, though insider participation and strategic initiatives may lend cautious optimism.

    More about Europa Oil & Gas (Holdings) plc

    Europa Oil & Gas (Holdings) plc is an AIM-listed exploration, development and production company with oil and gas interests across West Africa, the UK and Ireland. The group focuses on upstream opportunities in these regions, utilising London capital markets to support growth while maintaining a diverse retail shareholder base.

  • European markets mixed as tech weighs; earnings drive stock moves: DAX, CAC, FTSE100

    European markets mixed as tech weighs; earnings drive stock moves: DAX, CAC, FTSE100

    European equities traded in mixed fashion on Wednesday, with investors reacting to a fresh wave of corporate earnings. Technology names faced selling pressure after Dassault flagged ongoing weakness in the European automotive sector.

    The U.K.’s FTSE 100 Index advanced 0.8%, while France’s CAC 40 hovered around flat levels. Germany’s DAX Index slipped 0.3%.

    Among individual movers, TotalEnergies (EU:TTE) gained 1.3% after the energy group lifted its final 2025 dividend by 5.6% to €3.40 per share.

    In contrast, software company Dassault Systemes (EU:DSY) plunged 20% following weaker-than-expected fourth-quarter results and a subdued outlook for the year ahead.

    Dutch recruitment specialist Randstad (EU:RAND) dropped 8.5% after issuing cautious guidance for the first quarter.

    Supermarket operator Ahold Delhaize (EU:AD) climbed 7% as its fourth-quarter earnings topped market forecasts.

    Heineken (EU:HEIA) rose 5.3% despite announcing plans to cut up to 6,000 jobs globally as it navigates a challenging demand environment.

    German bank Commerzbank (TG:CBK) fell 3%, even after posting a record €4.5 billion operating result for the 2025 fiscal year.

    Siemens Energy (TG:SIE) rallied 6% after reporting that first-quarter profit nearly tripled, supported by strong AI-related demand for gas turbines and grid infrastructure equipment.

    Thyssenkrupp Nucera (TG:NCH2), a producer of electrolysers, edged up 1.1% after reaffirming its FY26 guidance.

    Swiss elevator manufacturer Schindler Holding (TG:SHR) slid 8% after forecasting low- to mid-single-digit revenue growth in local currencies for 2026.

    In London, engineering firm Renishaw (LSE:RSW) advanced 2.7% on stronger-than-expected half-year figures.

    Housebuilder Barratt Redrow (LSE:BTRW) declined 6.3% after reporting first-half profits that missed expectations.

    Meanwhile, shares of London Stock Exchange Group (LSE:LSEG) rose 2.5% amid reports that activist investor Elliott Management has taken a sizable position in the company.

  • U.S. payrolls awaited; Ford absorbs $900 million tariff setback – key market drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. payrolls awaited; Ford absorbs $900 million tariff setback – key market drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures moved modestly higher early Wednesday as investors positioned for a delayed monthly employment report and continued to digest a heavy slate of corporate earnings.

    At 02:33 ET, Dow futures were up 91 points, or 0.2%. S&P 500 futures rose 12 points, also 0.2%, while Nasdaq 100 futures added 48 points, or 0.2%.

    The Dow Jones Industrial Average closed at a fresh all-time high on Tuesday, but the broader S&P 500 and the tech-focused Nasdaq Composite ended lower, weighed down in part by renewed debate over the disruptive impact of emerging artificial intelligence tools.

    Financial stocks were under pressure after wealth-management start-up Altruis unveiled an AI-powered tax planning solution. The Charles Schwab Corporation (NYSE:SCHW) slid more than 7%, while Raymond James Financial, Inc. (NYSE:RJF) posted its steepest single-day drop since the height of the 2020 pandemic turmoil.

    The weakness mirrored recent AI-driven selloffs in insurance brokers and software names, highlighting broader concerns that the fast-evolving technology could significantly reshape multiple industries. Still, some analysts argue that market anxiety may be running ahead of fundamentals.

    Soft retail sales data also dampened sentiment, prompting speculation that U.S. growth could moderate in 2026. Expectations for a more dovish Federal Reserve stance increased, with CME FedWatch indicating a rising probability of an April rate cut.

    Focus turns to U.S. jobs report

    The main event of the day is the delayed January employment report.

    Economists forecast that the U.S. economy added approximately 66,000 jobs last month, compared with 50,000 in December.

    At its latest policy meeting, the Federal Reserve described the labor market as “stabilizing” after a period of sluggishness. That assessment, combined with inflation that remains elevated but steady, led policymakers to hold interest rates in the 3.5%–3.75% range.

    Earlier this week, White House economic adviser Kevin Hassett warned that advances in artificial intelligence could weigh on job growth in the coming months, even as productivity improves.

    With uncertainty surrounding both employment trends and inflation — the Fed’s dual mandates — the outlook for 2026 remains unclear. The payrolls data, along with Friday’s consumer price index, may offer further guidance on the likely trajectory of interest rates.

    “Today’s jobs report is a pivotal event for the [foreign exchange] market. A materially weak print would likely pave the way for markets to price in a cut in April,” analysts at ING Groep N.V. said.

    Ford forecasts strong year despite tariff-related hit

    Ford Motor Company (NYSE:F) shares edged higher in extended trading after the automaker delivered profit and cash flow projections that exceeded expectations.

    Ford guided for annual operating income of about $9 billion, above the roughly $8.85 billion anticipated by analysts. It also forecast free cash flow of $5.5 billion, topping market estimates.

    However, the company reported a fourth-quarter operating loss of $11.1 billion — the largest in its history — after booking a $900 million charge tied to a delay in implementing a tariff-relief program introduced during the Trump administration.

    Chief Financial Officer Sherry House said the company was informed of the “unexpected” change “very late” in 2025.

    Takeover tensions around Warner

    Separately, developments continued in the high-profile takeover battle involving Warner Bros. Discovery, Inc. (NASDAQ:WBD).

    According to the Wall Street Journal, activist investor Ancora Holdings has accumulated a stake worth roughly $200 million and is preparing to urge Warner to reject a sweeping offer from Netflix, Inc. (NASDAQ:NFLX) for its film and television assets and HBO Max streaming service.

    The report said Ancora may argue that Warner has not sufficiently engaged with a competing proposal from Paramount Skydance, led by David Ellison, which seeks to acquire the entire company rather than selected divisions.

    Paramount has reportedly enhanced its bid by offering additional cash to Warner shareholders for each quarter the transaction remains incomplete and by covering any breakup fee associated with terminating the Netflix agreement. Nonetheless, its total offer — including debt — remains at $108.4 billion.

    Gold and oil advance

    Gold prices strengthened after weak U.S. retail sales data fueled expectations of slowing economic momentum, sharpening focus on the upcoming payrolls release.

    Spot gold rose 0.4% to $5,047.08 per ounce, while futures gained 0.8% to $5,071.34, though prices remained below recent record highs.

    Oil markets also moved higher. Brent crude climbed 1.2% to $69.64 per barrel, and U.S. West Texas Intermediate crude added 1.3% to $64.81 per barrel.