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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/feb/22/pound-euro-uk-gdp-growth-brexit-lloyds-fed-minutes-live
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| UK growth revised up; Unilever vows to unlock value – business live | UK growth revised up; Unilever vows to unlock value – business live |
| (35 minutes later) | |
| 2.42pm GMT | |
| 14:42 | |
| Wall Street opens lower | |
| After consistently hitting new peaks in recent days, US markets have slipped back as investors pause for breath. | |
| The Dow Jones Industrial Average is down 44 points or 0.21% while the S&P 500 and Nasdaq Composite both opened slightly lower. A dip in oil prices sent energy stocks lower, while there was some profit taking ahead of the latest Federal Reserve minutes. | |
| 1.55pm GMT | 1.55pm GMT |
| 13:55 | 13:55 |
| Alasdair Pal of Reuters is tweeting about the Unilever news: | Alasdair Pal of Reuters is tweeting about the Unilever news: |
| Unilever now almost at the Kraft-approach highs, after confirming a strategic review pic.twitter.com/U7wsbwJj95 | Unilever now almost at the Kraft-approach highs, after confirming a strategic review pic.twitter.com/U7wsbwJj95 |
| Talk among contacts is increasingly that Unilever will look at spinning off some of their household brands to focus on high-margin food | Talk among contacts is increasingly that Unilever will look at spinning off some of their household brands to focus on high-margin food |
| John Bennett at Henderson bought Unilever on Monday for this very reason pic.twitter.com/Dbc8WGEGGe | John Bennett at Henderson bought Unilever on Monday for this very reason pic.twitter.com/Dbc8WGEGGe |
| Updated | Updated |
| at 2.00pm GMT | at 2.00pm GMT |
| 1.53pm GMT | 1.53pm GMT |
| 13:53 | 13:53 |
| Unilever hikes profit guidance | Unilever hikes profit guidance |
| A second announcement from Unilever just hit the City -- saying it is on track to hit the higher end of its profitability guidance | A second announcement from Unilever just hit the City -- saying it is on track to hit the higher end of its profitability guidance |
| The company say: | The company say: |
| The management of Unilever now expects Core Operating Margin improvement for 2017 to be at the upper end of its 40-80 basis points guidance. | The management of Unilever now expects Core Operating Margin improvement for 2017 to be at the upper end of its 40-80 basis points guidance. |
| Unilever announces "comprehensive review" of optionsTranslation: "What could we sell to keep big shareholders happy?" | Unilever announces "comprehensive review" of optionsTranslation: "What could we sell to keep big shareholders happy?" |
| 1.16pm GMT | 1.16pm GMT |
| 13:16 | 13:16 |
| Unilever’s shares have jumped by 3%, following its pledge to unlock more value.... | Unilever’s shares have jumped by 3%, following its pledge to unlock more value.... |
| Stay tuned, latest from @Unilever : "events of the last week have highlighted the need to capture more quickly the value we see in Unilever" pic.twitter.com/UdlpdF2MCh | Stay tuned, latest from @Unilever : "events of the last week have highlighted the need to capture more quickly the value we see in Unilever" pic.twitter.com/UdlpdF2MCh |
| 1.15pm GMT | 1.15pm GMT |
| 13:15 | 13:15 |
| Unilever vows to 'accelerate delivery of value' | Unilever vows to 'accelerate delivery of value' |
| Hello.... consumer good firm Unilever has just issued an intriguing statement to the City. | Hello.... consumer good firm Unilever has just issued an intriguing statement to the City. |
| It says: | It says: |
| Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders. The events of the last week have highlighted the need to capture more quickly the value we see in Unilever. | Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders. The events of the last week have highlighted the need to capture more quickly the value we see in Unilever. |
| We expect the review to be completed by early April, after which we will communicate further. | We expect the review to be completed by early April, after which we will communicate further. |
| Unilever Conducting Comprehensive Review of Options; Seeking to Accelerate Delivery of Value for investors; Review completed by early April | Unilever Conducting Comprehensive Review of Options; Seeking to Accelerate Delivery of Value for investors; Review completed by early April |
| What does this mean? Almost certainly, the Anglo-Dutch giant is planning to cut costs, and possibly selloff non-core divisions (maybe the spreads arm?), before Kraft Heinz can come back with a better takeover offer in six month’s time. | What does this mean? Almost certainly, the Anglo-Dutch giant is planning to cut costs, and possibly selloff non-core divisions (maybe the spreads arm?), before Kraft Heinz can come back with a better takeover offer in six month’s time. |
| Even though Unilever managed to defy Kraft Heinz’s first takeover approach last week, the company’s management must be disconcerted by the whole affair. | Even though Unilever managed to defy Kraft Heinz’s first takeover approach last week, the company’s management must be disconcerted by the whole affair. |
| And although Unilever’s major shareholders remained loyal to CEO Paul Polman, some must be wondering if their investment should be sweated a little... | And although Unilever’s major shareholders remained loyal to CEO Paul Polman, some must be wondering if their investment should be sweated a little... |
| Unilever sounding rattled: "he events of the last week have highlighted the need to capture more quickly the value we see in Unilever." | Unilever sounding rattled: "he events of the last week have highlighted the need to capture more quickly the value we see in Unilever." |
| 12.51pm GMT | 12.51pm GMT |
| 12:51 | 12:51 |
| UK to set out approach to foreign takeovers | UK to set out approach to foreign takeovers |
| Newsflash: Britain’s government is drawing up proposals for how it could intervene when a foreign company tries to buy a UK firm. | Newsflash: Britain’s government is drawing up proposals for how it could intervene when a foreign company tries to buy a UK firm. |
| It’s a timely move, with Unilever having just told Kraft Heinz where it can stick its £114bn takeover offer. | It’s a timely move, with Unilever having just told Kraft Heinz where it can stick its £114bn takeover offer. |
| Business secretary Greg Clark made the pledge during a speech at the EEF’s annual conference in London today, telling delegates that: | Business secretary Greg Clark made the pledge during a speech at the EEF’s annual conference in London today, telling delegates that: |
| “We will be setting out some proposals in the weeks ahead.” | “We will be setting out some proposals in the weeks ahead.” |
| Rt Hon Greg Clark MP, Secretary of State for #Business, #Energy & #Industrial Strategy addresses a packed audience at #EEF2017 today. #LEEA pic.twitter.com/RJNqpRCfmg | Rt Hon Greg Clark MP, Secretary of State for #Business, #Energy & #Industrial Strategy addresses a packed audience at #EEF2017 today. #LEEA pic.twitter.com/RJNqpRCfmg |
| Clark was also quizzed on Brexit, but didn’t shed much new light on the government’s strategy: | Clark was also quizzed on Brexit, but didn’t shed much new light on the government’s strategy: |
| Clark: I believe in free trade, should continue to have best possible, tariff free access without bureaucratic restrictions #brexit #eef2017 | Clark: I believe in free trade, should continue to have best possible, tariff free access without bureaucratic restrictions #brexit #eef2017 |
| 12.16pm GMT | 12.16pm GMT |
| 12:16 | 12:16 |
| Business investment suffers first annual fall since 2009 | Business investment suffers first annual fall since 2009 |
| Business investment in the UK fell by 1.5% during 2016, a decline of £2.7bn, according to new ONS figures. | Business investment in the UK fell by 1.5% during 2016, a decline of £2.7bn, according to new ONS figures. |
| That’s the first annual decrease in business investment since 2009, after the financial crisis. | That’s the first annual decrease in business investment since 2009, after the financial crisis. |
| The ONS says firms cut their investment in buildings, machinery, and information and communication technology. | The ONS says firms cut their investment in buildings, machinery, and information and communication technology. |
| TUC General Secretary Frances O’Grady fears the knock-on impact on productivity, employment and wages. | TUC General Secretary Frances O’Grady fears the knock-on impact on productivity, employment and wages. |
| “It’s very worrying to see that business investment is already falling with the challenges of Brexit ahead. If this trend continues, working people will pay the price through weaker wages and fewer jobs. | “It’s very worrying to see that business investment is already falling with the challenges of Brexit ahead. If this trend continues, working people will pay the price through weaker wages and fewer jobs. |
| “Despite a modest boost to public investment last year, UK investment still lags behind the world’s leading industrial nations. With private sector investment in retreat, the Chancellor must focus on closing the gap with our competitors in next month’s budget. This would help protect jobs and wages, and it would give a much needed boost to business confidence.” | “Despite a modest boost to public investment last year, UK investment still lags behind the world’s leading industrial nations. With private sector investment in retreat, the Chancellor must focus on closing the gap with our competitors in next month’s budget. This would help protect jobs and wages, and it would give a much needed boost to business confidence.” |
| This chart shows how business investment has been lacklustre recently. | This chart shows how business investment has been lacklustre recently. |
| Updated | Updated |
| at 12.28pm GMT | at 12.28pm GMT |
| 11.36am GMT | 11.36am GMT |
| 11:36 | 11:36 |
| The momentum in the UK economy at the turn of the year continues to surprise to the upside, says Sam Hill of Royal Bank of Canada. | The momentum in the UK economy at the turn of the year continues to surprise to the upside, says Sam Hill of Royal Bank of Canada. |
| But he expects growth to slow in the current quarter, to around +0.4%, because: | But he expects growth to slow in the current quarter, to around +0.4%, because: |
| ...higher inflation and Brexit uncertainty present on-going headwinds to consumer spending and business investment, which the erratic contribution from the external sector is unlikely to compensate for. | ...higher inflation and Brexit uncertainty present on-going headwinds to consumer spending and business investment, which the erratic contribution from the external sector is unlikely to compensate for. |
| 11.16am GMT | 11.16am GMT |
| 11:16 | 11:16 |
| Ben Chu of the Independent has created a handy graph, showing how business investment has tailed off: | Ben Chu of the Independent has created a handy graph, showing how business investment has tailed off: |
| ...and business investment estimated to have fallen 1% in Q4 2016 pic.twitter.com/2VOcCUtfHA | ...and business investment estimated to have fallen 1% in Q4 2016 pic.twitter.com/2VOcCUtfHA |
| 11.15am GMT | 11.15am GMT |
| 11:15 | 11:15 |
| The weak pound helped to cushion Britain from the Brexit vote shock, says Nancy Curtin, Chief Investment Officer at Close Brothers Asset management. | The weak pound helped to cushion Britain from the Brexit vote shock, says Nancy Curtin, Chief Investment Officer at Close Brothers Asset management. |
| “The improved GDP revision for the final quarter of 2016 confirms that it was business as usual for the UK economy, despite the UK’s momentous vote to leave the EU. The lower pound appears to have acted as shock absorber and continues to aid industrial activity and exports. The UK is also in a fortunate position of capitalising on any pick up in global growth given that 70% of its market is international. | “The improved GDP revision for the final quarter of 2016 confirms that it was business as usual for the UK economy, despite the UK’s momentous vote to leave the EU. The lower pound appears to have acted as shock absorber and continues to aid industrial activity and exports. The UK is also in a fortunate position of capitalising on any pick up in global growth given that 70% of its market is international. |
| 11.03am GMT | 11.03am GMT |
| 11:03 | 11:03 |
| GDP: Some more charts | GDP: Some more charts |
| Britain’s economic growth was less impressive when you adjust for population changes. | Britain’s economic growth was less impressive when you adjust for population changes. |
| GDP rose by 0.5% on a per-head basis in the last quarter, and is now 1.8% above its pre-crisis peak in 2008. | GDP rose by 0.5% on a per-head basis in the last quarter, and is now 1.8% above its pre-crisis peak in 2008. |
| Overall, Britain’s economy is 8.6% larger than before the financial crisis struck - making it one of the better-performing G7 economies. | Overall, Britain’s economy is 8.6% larger than before the financial crisis struck - making it one of the better-performing G7 economies. |