Must read: oil prices, AI hype, Diploma, Unilever
ii’s head of investment rounds up the morning’s big news.
18th March 2026 08:50
by Victoria Scholar from interactive investor
Global markets
European markets have opened higher, with the FTSE 100 lifted by Diploma (LSE:DPLM) which is up around 16% after raising its fiscal 2026 guidance on the back of strong aerospace demand. Oil prices are softening, with WTI and Brent pushing lower amid easing supply concerns thanks to rising US crude inventories. Iraq has also agreed a deal with Kurdistan to restart oil exports via Turkey’s Ceyhan port. However, Brent crude remains above $100 a barrel, is still up about 70% since the start of the year, and is volatile.
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In the US, attention turns to tonight’s interest rate decision from the Federal Reserve, with the central bank most likely to keep rates unchanged for the second straight meeting given the uncertain outlook around inflation since the start of the Iran war. Focus will be on its economic forecasts, with the potential for a higher inflation and lower growth expectations in light of Middle East uncertainty. After two days of declines the dollar is trading flat and US futures are pointing higher, on track to extend yesterday’s gains.
Overnight, Japan's Nikkei index surged 2.8% thanks to a jump in tech stocks, and AI firms in China surged on upbeat comments from NVIDIA Corp (NASDAQ:NVDA) CEO Jensen Huang about the outlook for AI agents and OpenClaw.
Unilever
According to Bloomberg, Unilever (LSE:ULVR) is in the early stages of weighing a separation of its food assets including brands like Marmite and Knorr stock cubes. The report said the transaction would value Unilever’s food brands at tens of billions of dollars.
Unilever is under pressure to streamline the business and focus on power brands, given the underperformance of its share price over the past five years versus the FTSE 100 and other global consumer goods companies like Nestle SA (SIX:NESN) and Procter & Gamble Co (NYSE:PG). Hope is that Unilever can improve its outlook by shifting focus more towards beauty and personal care where margins have historically been higher and there is less room for consumers to trade down to cheaper own-brand alternatives.
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If the separation materialises for Unilever, it will mark an extension of previous decisions to let go of other food assets including the recent demerger of its ice cream division and the sale of its spreads business in 2017-18.
A broader move away from food might also appeal to investors given the rise in weight loss drugs that is creating a cloud of uncertainty in the food sector, particularly among unhealthier options, and looks set to reshape consumer demand in a way that is yet to be fully understood.
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