19th Mar 2026 07:55
(Alliance News) - The UK unemployment rate held steady and came in below expectations, while corporate headlines saw Unilever and Kraft Heinz explore a potential food brands tie-up and BP agree to sell its Gelsenkirchen refinery as part of its portfolio overhaul.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 1.1% at 10,190.09
GBP: lower at USD1.3272 (USD1.3334 at previous London equities close)
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ECONOMICS
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The UK unemployment rate held steady in the three months to January, while wage growth eased and employment rose, according to the Office for National Statistics. The jobless rate came in at 5.2%, unchanged from the previous period and slightly below market expectations of 5.3%. Employment increased by 84,000, beating forecasts, while the employment rate rose to 75.1% and inactivity declined by 0.3 percentage point to 20.7%. Pay growth showed signs of cooling, with regular earnings excluding bonuses rising 3.8% year-on-year, down from 4.1% and below expectations. Including bonuses, wage growth slowed to 3.9% from 4.2%. Meanwhile, the claimant count rose by 24,700 in February, with the claimant rate edging up to 4.4% from 4.3%.
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BROKER RATINGS
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Barclays cuts Bunzl to 'equal weight' - price target 2,250 pence
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Citigroup raises Wizz Air to 'neutral' (sell) - price target 1,000 (750) pence
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COMPANIES - FTSE 100
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Unilever and Kraft Heinz held talks in recent months over a potential merger of parts of their food businesses, the Financial Times reported, though discussions have since ended without a deal. The talks focused on combining Unilever's food division with Kraft Heinz's condiments business, potentially creating a company worth tens of billions of dollars, the FT noted. The FT article follows a report late Tuesday by Bloomberg saying London-based Unilever is in the early stages of considering a separation of its food assets, as it seeks growth from beauty, personal care and wellbeing brands. The company last year spun off its ice cream arm into Magnum Ice Cream, retaining a near-20% stake that it plans to sell down over time. Kraft Heinz has also been reviewing its portfolio, having previously announced plans to split the business into two entities, though that transaction is currently on pause.
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BP has agreed to sell its Gelsenkirchen refinery and related assets in Germany to Klesch Group, as part of its strategy to simplify its portfolio and strengthen its balance sheet. The London-based oil major says the deal will increase its structural cost-reduction target by around USD1 billion, to between USD6.5 billion and USD7.5 billion by 2027, reflecting lower operating expenditure linked to the refinery. BP adds that the transaction will be free cash flow accretive and help improve the resilience of its refining portfolio, while allowing it to focus on core integrated businesses. The Gelsenkirchen refinery processes around 12 million tonnes of crude oil annually and employs about 1,800 people. The deal is expected to be completed in the second half of 2026, subject to regulatory approvals. BP interim CEO Carol Howle says: "With this transaction, we are strengthening our balance sheet, increasing our structural cost reduction target, and increasing the resilience of our focused refining portfolio. We will continue to take decisive action to reduce portfolio complexity - with a continued focus on growing cash flow and returns and delivering value for our shareholders."
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Land Securities Group says it has leased 54% of its Timber Square office development in London to BP PLC, which will establish its new global headquarters at the site. The agreement covers a 192,000 square foot lease for the entire 15-storey Ink building at the SE1 development, which has now completed. Landsec says the deal highlights strong demand for prime, high-quality office space in central London, with further interest in the remaining Print building at Timber Square. The company adds leasing momentum remains robust across its portfolio, with its MYO Kings Cross development already 60% let or under offer and strong interest in its Thirty High scheme ahead of completion later this year.
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LondonMetric Property says it has refinanced GBP1.5 billion of debt facilities, extending maturities and reducing financing costs as it strengthens its balance sheet. The new unsecured term loans and revolving credit facilities replace most existing facilities due to mature over the next four years and are expected to deliver annual cash savings of around GBP6 million. LondonMetric says the refinancing improves its weighted average debt maturity to 4.4 years and removes significant refinancing risk until financial 2029. The average margin on the new facilities has also been reduced to 105 basis points. Following the transaction, only GBP186 million of debt is due to expire over the next two years, with the company adding that it has around GBP500 million of undrawn facilities available.
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COMPANIES - FTSE 250
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Elementis says it has appointed Trudy Schoolenberg as non-executive chair, succeeding John O'Higgins following the company's annual general meeting on April 29. Schoolenberg, currently senior independent director since 2022 and chair of Accsys Technologies, will step up to lead the board as Elementis "enters its next phase of growth", the company said. CEO Luc van Ravenstein says: "[Schoolenberg's] international experience, deep knowledge of the industry and respected position within Elementis make her the right leader at this important juncture for the business." The company also announced the appointment of Mike Humphrey as an independent non-executive director, bringing experience from his tenure as CEO of Croda International.
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OTHER COMPANIES
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Lloyd's of London reports higher annual profit and premium growth in 2025, supported by strong investment returns, while launching a new five-year strategy focused on underwriting discipline and efficiency. The insurance and reinsurance market located in London says pretax profit rose to GBP10.6 billion from GBP9.6 billion, as gross written premium increased to GBP57.9 billion from GBP55.5 billion. Investment returns climbed to GBP6.0 billion from GBP4.9 billion, offsetting a slight decline in underwriting profit to GBP5.2 billion from GBP5.3 billion. The combined ratio worsened to 87.6% from 86.9%, with the underlying ratio also deteriorating to 81.8% from 79.1%, though catastrophe losses were described as relatively modest during the year. Lloyd's says its new strategy will focus on improving underwriting performance, increasing efficiency and maximising capital strength to drive returns. Chief Executive Patrick Tiernan says: "Supported by a very strong balance sheet, these results provide a firm foundation for the challenges and risks ahead, enabling the market to support communities, businesses and economies through periods of uncertainty. While the financial cost of catastrophes in 2025 was relatively modest, we remain acutely aware of the greater, human impact and those whose lives have been affected."
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Picton Property Income says it has delayed the publication of its annual results as it progresses a formal sale process under its ongoing strategic review. The company says it has received proposals from a wide range of interested parties and is now advancing a shortlisted number of options to determine a preferred outcome. As a result, Picton has postponed its annual results, originally scheduled for May 21, to a later date, with further updates to follow.
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By Eva Castanedo, Alliance News reporter
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BPUnileverLand SecuritiesAccsys TechElementisCroda InternationalPicton PropBunzlWizz Air