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London’s blue chip index was higher on Wednesday morning ahead of UK services and composite purchasing managers’ index data, after Beazley agreed to a potential £8.0 billion takeover by Zurich Insurance. The FTSE 100 index opened up 52.54 points, 0.5%, at 10,367.13. The FTSE 250 was down 21.12 points, 0.1%, at 23,269.25, and the AIM all-share was up 2.85 points, 0.4%, at 821.18. Earlier on Wednesday, the FTSE 100 reached a new intraday record of 10,383.43 points. The Cboe UK 100 was up 0.5% at 1,034.65, the Cboe UK 250 was 0.1% higher at 20,643.77, and the Cboe small companies was up 0.1% at 18,694.72. In European equities on Wednesday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt was down 0.1%. Sterling was at $1.3725 on Wednesday morning, up from $1.3695 at the London equities close on Tuesday. The euro was higher at $1.1828 from $1.1818. Against the yen, the dollar was higher at JP¥156.47 versus JP¥155.73. ‘The relief that came with the easing selloff across the metals space lasted until news broke that Anthropic, an AI startup backed by Amazon and Google, had rolled out a new AI tool designed to handle legal and research work traditionally done using paid databases. The announcement spooked markets, triggering a sharp selloff in software companies that sell data analytics and decision-making tools to lawyers, banks and corporates, on fears that AI and new players are coming for their lunch and at an accelerated pace,’ said Swissquote analyst Ipek Ozkardeskaya. On Wednesday morning, London Stock Exchange Group shares were down 5.8%, Sage Group fell 3.8%, while Relx was 2.8% lower. In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 down 0.8% and the Nasdaq Composite 1.4% lower. ‘It increasingly feels as though the AI rally is being retraced, regardless of how strong the results are,’ Ozkardeskaya added. ‘Elsewhere, geopolitical tensions between the US and Iran have intensified after reports that the US Navy shot down an Iranian drone heading toward a US aircraft carrier in the Arabian Sea,’ the analyst noted. ‘As always, geopolitically driven spikes can create tactical short-term opportunities, but upside risks currently dominate given how tense the situation with Iran remains.’ In Asia on Wednesday, the Nikkei 225 in Tokyo was down 0.8%. In China, the Shanghai Composite was 0.9% higher, while the Hang Seng Index in Hong Kong rose slightly. The S&P/ASX 200 in Sydney was 0.8% higher. The yield on the US 10-year Treasury was quoted at 4.27% on Wednesday morning, narrowed from 4.29% at Tuesday’s close. The yield on the US 30-year Treasury slimmed to 4.90% from 4.92%. In London, Beazley led the FTSE 100 as shares climbed 8.7% after it agreed to a takeover offer from Zurich Insurance which values it at around £8.0 billion. Zurich offered 1,310 pence per share in cash before allowed dividends, which would take the total value for the insurer up to 1,335p per share. If the permitted dividend is declared and paid in full, the total value of the takeover would be at a 63% premium to Beazley’s market capitalisation before the takeover process began in January. The firms said the transaction would establish a leading, global specialty platform with around £15 billion of gross written premiums. The board of Beazley said it is minded to recommend the offer to shareholders, should Zurich give a firm intention to make an offer on these terms. ‘Zurich looks forward to commencing its confirmatory due diligence on Beazley and working with Beazley towards a binding offer announcement,’ it said. Zurich has until February 16 to announce a firm intention to make an offer for Beazley. DCC shares climbed 5.0% as it said adjusted operating profit grew strongly in the third quarter compared to the prior year. The Dublin-based provider of sales, marketing and distribution services to the energy sector said it expects ‘good operating profit growth’ on a continuing basis for the financial year to the end of March, along with ‘significant strategic progress and ongoing development activity’. GSK shares were 1.2% higher after it said it delivered ‘another strong performance’ in 2025, driven mainly by its Specialty Medicines arm. The London-based pharmaceuticals company reported turnover of £32.67 billion for 2025, up 4.1% from £31.38 billion a year prior. Pretax profit more than doubled to £7.41 billion from £3.48 billion. Selling, general & administrative costs were 18% lower at £9.09 billion from £11.02 billion, while research & development costs increased 18% to £7.53 billion from £6.40 billion. GSK said Specialty Medicines sales rose 17% to £13.5 billion, while Respiratory, Immunology & Inflammation sales jump 18% to £3.8 billion. The firm declared a fourth quarter dividend of 18 pence per share, up from 16p a year prior. The total 2025 dividend was 66p, up from 61p in 2024. GSK added that it expects a 70p per share dividend for 2026. Looking ahead, GSK expects turnover growth between 3% and 5% in 2026, with core operating profit and core earnings per share growth between 7% and 9%. GSK expects sales of more than £40 billion in 2031. ‘GSK delivered another strong performance in 2025, driven mainly by Specialty Medicines, with double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology and HIV,’ said Chief Executive Officer Luke Miels. Watches of Switzerland Group shares were 3.8% lower on the FTSE 250 index after it said trading throughout the third quarter was ‘strong’ and consistent with trends in the first half of the year. The Leicester, England-based watch and jewellery retailer says sales growth in the third quarter to January 25 was ahead of expectations, while demand continues to outstrip supply for key luxury brands in the UK and US. It raised expectations for sales growth in constant currency to between 9% and 11% from between 6% and 10% previously. It adjusted earnings before interest and tax margin guidance to fall between 70 and 90 basis points, from between flat and 100 basis points lower previously. ‘I am pleased to report another period of strong performance, building on the sales momentum established in the first half and reflecting strong trading over the holiday period,’ says Chief Executive Officer Brian Duffy. ‘Looking ahead we remain focused on further cementing our market position across both the US and UK, underpinned by our differentiated model, long-standing brand partnerships and disciplined execution.’ Gold was higher at $5,077.20 an ounce early on Wednesday from $4,971.16 late Tuesday. Brent oil was trading slightly higher at $67.18 a barrel on Wednesday morning from $67.15 on Tuesday. Still to come on Wednesday’s economic calendar is UK composite PMI, due shortly with the US reading to come later, eurozone PPI figures and ADP payroll data in the US. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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