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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/oct/05/unilever-abandons-plans-to-move-hq-to-netherlands-business-live
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| Unilever abandons plans to move HQ as US jobless rate falls to lowest since 1969 - business live | |
| (35 minutes later) | |
| US markets are open and this is how it looks: | |
| Dow Jones: +0.05% at 26,640 | |
| S&P 500: +0.02% at 2,902 | |
| Nasdaq: -0.07% at 7,874 | |
| The dollar has fallen after the jobs data, helping the pound up 0.5% at $1.3082. | |
| Two minutes until the opening bell on Wall Street. | |
| Here is our full story on the US jobs report from the Guardian’s economics editor, Larry Elliott: | |
| Just out: 3.7% Unemployment is the lowest number since 1969! | |
| While job creation in the US slowed in September, the unemployment rate fell to a near 49-year low of 3.7%, down from 3.9% in August. | |
| Economists were forecasting a smaller dip to 3.8%. | |
| Michael Pearce, US economist at Capital Economics says the Federal Reserve will press on with rate hikes despite the weaker non-farm payrolls number: | |
| The weaker 134,000 gain in payrolls in September may partly reflect some hit from Hurricane Florence and with large upward revisions to previous months’ gains, plus a fall in the unemployment rate to the lowest level since 1969, there is little in this report to stop the Fed continuing to raise interest rates gradually. | |
| US futures rose briefly when the US payrolls figure came in lower than expected but have since dipped back into the red. | US futures rose briefly when the US payrolls figure came in lower than expected but have since dipped back into the red. |
| Bond yields also fell briefly but are now rising again. The yield on 30-year US government bonds has hit a fresh four-year high of 3.396%. | Bond yields also fell briefly but are now rising again. The yield on 30-year US government bonds has hit a fresh four-year high of 3.396%. |
| The dollar index - measuring the US currency against a basket of others - is flat at 95.75. | The dollar index - measuring the US currency against a basket of others - is flat at 95.75. |
| The US Labor department says the weaker-than-expected figures are partly explained by Hurricane Florence, which affected trade in bars, restaurants and hotels. | The US Labor department says the weaker-than-expected figures are partly explained by Hurricane Florence, which affected trade in bars, restaurants and hotels. |
| Hurricane Florence affected parts of the East Coast during the September reference periods for the establishment and household surveys. | Hurricane Florence affected parts of the East Coast during the September reference periods for the establishment and household surveys. |
| Employment in leisure and hospitality was little changed over the month (-17,000). Prior to September, employment in the industry had been on a modest upward trend. Some of the weakness in this industry in September may reflect the impact of Hurricane Florence. | Employment in leisure and hospitality was little changed over the month (-17,000). Prior to September, employment in the industry had been on a modest upward trend. Some of the weakness in this industry in September may reflect the impact of Hurricane Florence. |
| Breaking: A fairly big downside surprise in non-farm payrolls, which came in at 134,000 in September compared with expectations for 185,000. | Breaking: A fairly big downside surprise in non-farm payrolls, which came in at 134,000 in September compared with expectations for 185,000. |
| The figure for August was revised up to 270,000 from 201,000. | The figure for August was revised up to 270,000 from 201,000. |
| Annual earnings growth came in at 2.8%, as expected, and down from 2.9% in August. | Annual earnings growth came in at 2.8%, as expected, and down from 2.9% in August. |
| It’s US non-farm payrolls day, and investors await the figures as keenly as ever. | It’s US non-farm payrolls day, and investors await the figures as keenly as ever. |
| Economists polled by Reuters are predicting 185k for September, up from 204k last month. | Economists polled by Reuters are predicting 185k for September, up from 204k last month. |
| Average earnings are expected to come in at 2.8%, a touch lower than last month’s 2.9%. | Average earnings are expected to come in at 2.8%, a touch lower than last month’s 2.9%. |
| Rachel Reeves, Labour MP and chair of the Business, Energy and Industrial Strategy committee, makes the point that Unilever announced the plans to move its headquarters from London after fending off a takeover approach from America’s Kraft Heinz early last year: | Rachel Reeves, Labour MP and chair of the Business, Energy and Industrial Strategy committee, makes the point that Unilever announced the plans to move its headquarters from London after fending off a takeover approach from America’s Kraft Heinz early last year: |
| Whatever the arguments made for incorporating into the Netherlands, there was a real suspicion that, in the wake of the hostile bid from Kraft Heinz, part of the motive for the move was that UK rules too easily allow takeovers. | Whatever the arguments made for incorporating into the Netherlands, there was a real suspicion that, in the wake of the hostile bid from Kraft Heinz, part of the motive for the move was that UK rules too easily allow takeovers. |
| As a committee, we will want to consider looking at the government’s white paper on foreign takeovers to see whether the new regime should include additional safeguards. | As a committee, we will want to consider looking at the government’s white paper on foreign takeovers to see whether the new regime should include additional safeguards. |
| BEIS committee chair Rachel Reeves in @standardcity . On Unilever HQ news:"There was a real suspicion that, in the wake of the hostile bid from Kraft Heinz, part of the motive for the move was that UK rules too easily allow takeovers"@RachelReevesMP https://t.co/fFyPaklicp | BEIS committee chair Rachel Reeves in @standardcity . On Unilever HQ news:"There was a real suspicion that, in the wake of the hostile bid from Kraft Heinz, part of the motive for the move was that UK rules too easily allow takeovers"@RachelReevesMP https://t.co/fFyPaklicp |
| European markets are a sea of red this morning, as rising US bond yields, pressure on emerging markets, and Italy’s rising debts weigh on confidence. | European markets are a sea of red this morning, as rising US bond yields, pressure on emerging markets, and Italy’s rising debts weigh on confidence. |
| FTSE 100: -0.6% at 7,375 | FTSE 100: -0.6% at 7,375 |
| Germany’s DAX: -0.6% at 12,169 | Germany’s DAX: -0.6% at 12,169 |
| France’s CAC: -0.4% at 5,387 | France’s CAC: -0.4% at 5,387 |
| Italy’s FTSE MIB: -1% at 20,413 | Italy’s FTSE MIB: -1% at 20,413 |
| Spain’s IBEX: -0.4% at 9,281 | Spain’s IBEX: -0.4% at 9,281 |
| Europe’s STOXX 600: -0.5% at 378 | Europe’s STOXX 600: -0.5% at 378 |
| David Madden, analyst at CMC Markets, says US bond yields could rise further - piling more pressure on emerging markets - if the non-farm payrolls report comes in stronger than expected at 1.30pm (BST): | David Madden, analyst at CMC Markets, says US bond yields could rise further - piling more pressure on emerging markets - if the non-farm payrolls report comes in stronger than expected at 1.30pm (BST): |
| Stocks are firmly in the red as investors are worried about rising US government bond yields, emerging market economies, and Italy’s political situation. The rise in US yields could put additional pressure on emerging economies, and the US non-farm payrolls report later today could drive yields even higher if we see a positive update. | Stocks are firmly in the red as investors are worried about rising US government bond yields, emerging market economies, and Italy’s political situation. The rise in US yields could put additional pressure on emerging economies, and the US non-farm payrolls report later today could drive yields even higher if we see a positive update. |
| The Italian government are holding their nerve and are determined to disobey Brussels, and pursue increased government spending in a bid to boost economic activity. The political rumbling regarding Italy might spark another round of the Italian debt crisis. | The Italian government are holding their nerve and are determined to disobey Brussels, and pursue increased government spending in a bid to boost economic activity. The political rumbling regarding Italy might spark another round of the Italian debt crisis. |
| The business secretary, Greg Clark, gives his reaction to Unilever: | The business secretary, Greg Clark, gives his reaction to Unilever: |
| A welcome decision by @Unilever board having listened to shareholders. HQ remaining builds on two of its three global businesses being based in the UK. Our Industrial Strategy commits us to always being an open & competitive economy & a great place to locate global headquarters. | A welcome decision by @Unilever board having listened to shareholders. HQ remaining builds on two of its three global businesses being based in the UK. Our Industrial Strategy commits us to always being an open & competitive economy & a great place to locate global headquarters. |
| Interesting reference to the industrial strategy, which a year on from the announcement is still without the independent watchdog required to get it up and running: | Interesting reference to the industrial strategy, which a year on from the announcement is still without the independent watchdog required to get it up and running: |
| Royal London Asset Management (which has 0.7% stake in Unilever, worth roughly £360m) was one of the public opponents to Unilever’s plans and has responded to the firm’s decision to scrap them: | Royal London Asset Management (which has 0.7% stake in Unilever, worth roughly £360m) was one of the public opponents to Unilever’s plans and has responded to the firm’s decision to scrap them: |
| We welcome the decision the board of Unilever has taken. They have listened to shareholder concerns and responded in a constructive way. | We welcome the decision the board of Unilever has taken. They have listened to shareholder concerns and responded in a constructive way. |
| As a high quality company with a talented management team, we are pleased we and other UK investors can now share in the future growth of the company. We look forward to continued engagement with Unilever on the next steps. | As a high quality company with a talented management team, we are pleased we and other UK investors can now share in the future growth of the company. We look forward to continued engagement with Unilever on the next steps. |
| Russ Mould, investment director at AJ Bell, says Unilever’s decision to back track on plans to move its HQ to Rotterdam shows the power of institutional investors and puts pressure on the board. | Russ Mould, investment director at AJ Bell, says Unilever’s decision to back track on plans to move its HQ to Rotterdam shows the power of institutional investors and puts pressure on the board. |
| Today’s climbdown from Unilever over a plan which would have necessitated its exit from the FTSE 100 is an example of the power institutional investors can wield when they act in concert with one another. | Today’s climbdown from Unilever over a plan which would have necessitated its exit from the FTSE 100 is an example of the power institutional investors can wield when they act in concert with one another. |
| This brings into the question the credibility of Unilever’s insistence that the vast majority of shareholders were ‘fully supportive’ of its proposals ahead of the vote deadline in the UK and the Netherlands later this month. | This brings into the question the credibility of Unilever’s insistence that the vast majority of shareholders were ‘fully supportive’ of its proposals ahead of the vote deadline in the UK and the Netherlands later this month. |
| Abandoning its dual UK-Dutch stock market listing and moving its HQ to Rotterdam would have made Unilever, one of the London market’s leading lights, ineligible for the FTSE and many institutions complained they would have been forced sellers of the shares. | Abandoning its dual UK-Dutch stock market listing and moving its HQ to Rotterdam would have made Unilever, one of the London market’s leading lights, ineligible for the FTSE and many institutions complained they would have been forced sellers of the shares. |
| The episode looks to have been badly mis-managed and the position of chief executive Paul Polman and the rest of the board is likely to come under severe scrutiny. | The episode looks to have been badly mis-managed and the position of chief executive Paul Polman and the rest of the board is likely to come under severe scrutiny. |
| The Investment Association, a trade body representing UK fund managers, says there was no reason for UK shareholders to vote in favour of Unilever’s move to Rotterdam, and has welcomed the firm’s decision to scrap the plans. | The Investment Association, a trade body representing UK fund managers, says there was no reason for UK shareholders to vote in favour of Unilever’s move to Rotterdam, and has welcomed the firm’s decision to scrap the plans. |
| The feedback from many of our members has been that there was no compelling reason for Plc shareholders to accept the proposed simplification in this form. They did not believe it would be in the long-term interests of their clients, and would have resulted in many shareholders being forced to sell their shares. | The feedback from many of our members has been that there was no compelling reason for Plc shareholders to accept the proposed simplification in this form. They did not believe it would be in the long-term interests of their clients, and would have resulted in many shareholders being forced to sell their shares. |
| We welcome the fact that Unilever has listened to the feedback from their shareholders and not pushed ahead with their plans. We look forward to engaging with the company on their future plans. | We welcome the fact that Unilever has listened to the feedback from their shareholders and not pushed ahead with their plans. We look forward to engaging with the company on their future plans. |
| The Dutch employers organisation VNO-NCW is blaming Brexit for Unilever’s decision: | The Dutch employers organisation VNO-NCW is blaming Brexit for Unilever’s decision: |
| The website DutchNews.nl quotes the organisation: | The website DutchNews.nl quotes the organisation: |
| [We are sorry that] such an important decision has become swept up in the turbulent political developments in the UK. | [We are sorry that] such an important decision has become swept up in the turbulent political developments in the UK. |
| It is also an indication of what Brexit means, a hard fight for corporate locations. | It is also an indication of what Brexit means, a hard fight for corporate locations. |