London pre-open: Stocks seen up as investors mull borrowing, retail sales data

(Sharecast News) - London stocks were set to gain at the open on Friday as investors mulled the latest UK retail sales and government borrowing figures.

The FTSE 100 was called to open around 45 points higher.

Data released earlier by the Office for National Statistics showed the government recorded its highest surplus on record in January, at �30.4bn. This was above expectations of �24bn and double the figure from January 2025.

ONS chief economist Grant Fitzner said: "January - which is traditionally a strong month for self-assessed tax receipts - saw the highest surplus since monthly records began.

"Revenue was strongly up on the same time last year, while spending was little changed, due to lower debt interest payments largely offsetting higher costs on public services and benefits.

"Across the first ten months of the current financial year, borrowing is lower than the same period a year ago."

Separate data from the ONS showed that retail sales rose 1.8% on the month in January following a 0.4% increase in December and comfortably beating expectations for 0.2% growth.

On a yearly basis, sales were up 4.5%, ahead of expectations for a 2.8% jump.

Grant Fitzner said: "Retail sales rose slightly in the latest three months, as sales continued to pick up in the new year following a weak November.

"Motor fuel sales increased a little across the period, while sales of art works, tech retailers and furniture stores also performed well. These were partially offset by falls in supermarket sales."

Away from home, geopolitical tensions were in focus after US president Donald Trump gave Iran a deadline of 10 to 15 days to make a deal over its nuclear program or "bad things" would happen.

At the inaugural meeting of his Board of Peace in Washington, Trump said Iran needed to reach a "meaningful" agreement with the US amid a massive US military buildup in the Middle East.

"It's proven to be over the years not easy to make a meaningful deal with Iran - we have to make a meaningful deal otherwise bad things happen," he said.

In corporate news, Anglo American reported a slight rise in annual earnings as higher copper prices offset a 10% decline in production of the metal due to lower grades and plant maintenance while continuing tough conditions at its De Beers diamond unit also weighed on earnings.

Underlying core earnings rose 2% to $6.4bn. The final dividend was slashed by 27% to 16cents a share, for a total of 23cents a share, down 64%. Anglo wrote down the value of its De Beers diamond business by $2.3bn, the third in three years.

Property developer Segro said it delivered a "strong" operating performance in 2025, securing a record �99m of new contracted rent and posting 6% likeforlike growth in net rental income.

Adjusted earnings and dividends per share both rose 6.1% yearonyear to 36.6p and 31.1p, respectively, as momentum grew across occupier markets, with enquiry levels improving and active negotiations underway for further prelet deals.

Adjusted pre-tax profits increased by 8.3% to �509m.