Financial markets in the UK showed modest strength on Friday morning as the FTSE 100 advanced and the pound eased below the $1.35 mark. At 0845 GMT the blue-chip index was up 0.3%, while sterling weakened 0.1% against the dollar to trade at 1.3451. European bourses were also in positive territory, with the DAX up 0.1% and the CAC 40 gaining 0.6%.
Domestic economic data added to the backdrop. The Office for National Statistics reported a notable increase in consumer activity in January: retail sales rose 1.8% month-over-month, outperforming December's 0.4% gain and handily beating economist expectations of a 0.2% rise. On a year-over-year basis, sales were up 4.5%, well above the 2.8% expansion markets had anticipated. These ONS figures point to a solid start to the year for goods spending.
Corporate developments driving market attention
A number of corporate announcements influenced investor focus. Aston Martin Lagonda Global Holdings PLC (BS:AMLl) reported a decline in annual wholesale volumes, delivering 5,448 units in 2025 compared with 6,030 in the prior year. To support liquidity, management is selling the firm's Formula One naming rights to an affiliate for £50 million. The company also provided guidance on profitability, with leadership expecting 2025 gross margins to be near 29.5%.
Anglo American PLC (LON:AAL) disclosed a $3.7 billion loss, driven in large part by further devaluations of its diamond operations. The miner said it is continuing to pursue the sale of non-core assets and is progressing with a strategic merger with Teck Resources.
Tullow Oil PLC (LON:TLW) reported 2025 free cash flow of roughly $100 million, a result that missed earlier targets. The producer highlighted a recent debt refinancing arrangement and said daily production averaged 40.4 kboepd, a level affected by the sale of its Gabonese assets.
In healthcare, AstraZeneca PLC (ST:AZN) secured FDA approval for Calquence, to be used in combination with venetoclax, as a fixed-duration, all-oral treatment for specific types of leukemia and lymphoma. The decision follows positive Phase III clinical trial results published in the New England Journal of Medicine.
In banking, HSBC Holdings PLC (LON:HSBA) cut around 10% of its U.S. debt capital markets workforce as part of a broader efficiency drive. The reductions reportedly affected a range of roles in New York, from analysts up to a managing director.
Consumer goods group Diageo PLC (LON:DGE) is reportedly planning changes to its executive leadership team. CEO Dave Lewis is said to be preparing a reconfiguration of the company's 14-member executive committee, aimed at addressing internal cultural issues at the beverage maker.
Market implications
The mix of stronger retail activity and selective corporate headwinds and wins underlined an uneven picture: consumer spending data supported the domestic economic narrative, while company-specific disclosures ranged from operational weakness and asset write-downs to regulatory approvals and executive restructuring. Investors appeared to digest these mixed signals with modest risk appetite, keeping major UK and European indices in positive territory.