The FTSE 100 closed higher on Friday, gaining 24.84 points (0.2%) to 10,497.29, supported by a double-digit rally in Vodafone and calmer trading conditions. The FTSE 250 rose 130.85 points (0.6%) to 23,371.41, while the AIM All-Share added 1.57 points (0.2%) to 763.82. For the week, the FTSE 100 fell 1.7%, the FTSE 250 dropped 0.7%, and the AIM All-Share lost 1.7%.
Vodafone Surges on Stake Acquisition
Vodafone shares ended 13% higher after investment vehicle Vega, owned by the Xavier Niel family, agreed to acquire Emirates Telecommunications’ 16.2% stake in the telecoms group for £4.4 billion. The deal makes Vega Vodafone’s largest shareholder, subject to regulatory approval. Vega stated it has no intention of making a takeover offer for Vodafone and plans to engage with the UK Government over the transaction. Vodafone said its relationship agreement with Emirates Telecommunications has ended, and e& nominee director Hatem Dowidar has stepped down from the board with immediate effect. BT Group shares rose 1.6% in a positive read-across. JPMorgan analyst Akhil Dattani noted that Niel is “not known to be a passive investor,” adding, “Hence we can’t help but wonder whether he has acquisition interest in Vodafone’s operations. Germany and UK screen most likely, considering their scale, and the opportunity for change.”
St James's Place Plunges on Partner Exit
St James’s Place shares slumped 8.6% after Financial News reported that Sovereign Wealth, a large partner firm, has decided to exit the group and join advice consolidator Soderberg and Partners, where former St James’s Place chief executive David Bellamy is a board member. Analysts at RBC Capital Markets called it a “worrying development” and the most tangible evidence that the “pulling power of the STJ platform may be creaking post the charge changes that were enacted in summer 2025.” In August 2025, STJ implemented a major overhaul to its charging structure to provide greater transparency. RBC believes the charge changes created “extra friction” for advisers at the point of sale, which “in our view [has] taken away one of the key ingredients of the ‘secret sauce’ that helped to propel the firm to its market-leading position.”
Hays and easyJet Lead FTSE 250 Gains
On the FTSE 250, Hays leapt 20% after the recruiter forecast annual profit at the top end of market expectations, despite “challenging” market conditions. The London-based firm said net fees fell 4% on-year in the final quarter, or 5% on a like-for-like basis, which was better than the 6% decline market consensus feared and an improvement on the 8% LFL fall in the prior three months. easyJet flew 14% higher after agreeing in principle to a £5.7 billion takeover proposal from asset manager Apollo Management X, worth 715p per share, beating a rival offer from Castlelake LP at 690p per share. easyJet said it was now “no longer minded” to accept Castlelake’s offer and called Apollo’s proposal a “superior outcome” for shareholders. JPMorgan analyst Harry Gowers said this is unlikely to be the end of interest, and “we may see further offers from other financial or potentially strategic bidders.” Castlelake said it is considering its options.
European and US Markets Mixed
In European equity markets, the CAC 40 in Paris ended up 0.2%, while the DAX 40 in Frankfurt fell 0.2%. In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was up slightly, and the Nasdaq Composite fell 0.2%. Kathleen Brooks, research director at XTB, said: “As we move to the end of the week, volatility has retreated and fears about an escalation in tensions between the US and Iran appear overdone.” US President Donald Trump said on Friday that the US has agreed to continue negotiations with Iran but reiterated that the ceasefire is finished. Brent crude for September delivery traded lower at $75.86 a barrel, down from $77.03 on Thursday. David Morrison, senior market analyst at Trade Nation, said it appears investors are taking the latest breakdown “in their stride.”
Currency, Bond, and Commodity Markets
The euro traded at $1.1434 against the dollar, up from $1.1432 on Thursday. Against the yen, the dollar was at 161.49 yen, down from 162.37 yen. The pound traded at $1.3419, up from $1.3397, and firmed to €1.1737 from €1.1717. The US 10-year Treasury yield traded at 4.56%, widened from 4.55%, while the 30-year yield was flat at 5.06%. Gold traded at $4,101.39 an ounce, down from $4,126.64.
FTSE 100 Risers and Fallers
The biggest risers on the FTSE 100 were Vodafone, up 12.3p at 110.1p; Entain, up 20.8p at 550.8p; JD Sports Fashion, up 2.3p at 83.8p; Spirax, up 160.0p at 6,555.0p; and Pershing Square Holdings, up 74.0p at 3,890.0p. The biggest fallers were St James’s Place, down 108.0p at 1,155.5p; AstraZeneca, down 520.0p at 12,834.0p; Hiscox, down 43.0p at 1,856.0p; Rentokil Initial, down 9.2p at 440.0p; and Babcock International, down 16.5p at 1,009.5p.
Outlook for Next Week
Next week’s global economic calendar features US inflation figures, UK GDP data, and a Canadian interest rate decision. Monday’s local corporate calendar includes a trading statement from recruiter PageGroup.
