Rolling business and financial news, including updated UK GDP for the first quarter of 2014
Latest: UK economy grew by 0.8%, ONS says
Business investment up 5% in last quarter
Mark Carney: 'new normal' means rates will be lower
12.11pm BST
Nice summary of the scene at Tesco's AGM from our retail reporter Simon Neville, no longer of this parish.
The general mood of the Tesco shareholders is they don't feel listened to, letters to the board go unanswered and execs are too arrogant
12.09pm BST
First with the big Tesco AGM news RT @ITVJoel: Another shareholder unhappy with the refrigeration systems at Potters Bar
I'm going to need a new refrigeration system myself if the quality of questions doesn't improve.....
12.07pm BST
Another shareholder is taking Tesco to task about.....the quality of its fruit section
Tesco now under fire from investor questioning nutritional content of South African fruit in its produce sections
12.05pm BST
Hi @Tesco it would mean a lot to your customers if you paid living wage to your staff please! #livingwage #TescoAGM
12.04pm BST
The current board aren't getting off lightly -- they've been criticised for taking home 'million' of pounds despite Tesco's poor share performance (down 13% in the last year)
#Tesco board getting a battering from shareholders at #TescoAGM oh dear
12.00pm BST
Anon shareholder blasts Sir Terry Leahy...says was "paid millions for losing billions"
11.58am BST
Another Tesco shareholder reminds the throng that Phil Clarke's predecessor, Sir Terry Leahy, blundered by trying to crack the US market.
The ill-fated Fresh & Easy chain, estimated to have cost Tesco £2bn, was put into bankruptcy last October.
Another #Tesco shareholder criticises Clarke's predecessor, Sir Terry Leahy, for "costing billions" from failed venture in the US.
11.50am BST
Tesco has also been handed a petition with 32,000 signatures, calling on the supermarket chain to start paying the Living Wage, of £7.65 per hour, to its staff.
@graemewearden @zoewoodguardian Heres former #Tesco manager Amy going into #TescoAGM w 32,000 calling for #livingwage pic.twitter.com/9KcsqHeuhe
11.46am BST
First shareholder up says Tesco not "Madonna". It doesn't need to be loved just provide decent place to shop...
I don't remember Madonna being a hit on the high street.
11.43am BST
You can always rely on Britain's army of small investors to speak unvarnished truth to City bosses:
Here comes the shareholders. 1st one accuses Tesco of "arrogance" when the going was good.
He also seems upset about lack of soap in the men's toilets at Brent Cross... That's AGMs for you.
11.41am BST
Now it's time for Tesco's shareholders to have their say....
Broadbent makes the obligatory plea for shareholders to keep questions brief. Like asking lions to stop eating meat... TescoAGM
11.40am BST
Tesco's problems lie in its big stores, Clarke points out, rather than in its web shopping and smaller convenience stores.
He tries to calm investor concerns by selling them that Tesco's new store format is delivering results:
PC says refurbished big stores are delivering "sustained" sales uplifts #TescoAGM
If online and convenience stores were our business "we'd be shooting the lights out" says Clarke. But 80% Tesco sales in larger stores.
11.34am BST
Tesco has learned over the last two years that we need to improve our performance, Clarke adds:
Philip Clarke says Tesco will cut more prices
"Reducing prices doesn't result in an instant sales increase," Clarke tells #Tesco shareholders.
11.29am BST
Now Tesco's CEO, Philip Clarke, is on his feet at the AGM.
Clarke, under pressure given Tesco's troubles, begins with a nod to the company's previous bosses:
"Thanks to all efforts made by my predecessors we have a strong basis to rebuild a new Tesco" diplomatic start from PC
First mention of the discounters from Tesco boss. They are a "resurgent force" he admits
11.24am BST
"You and we want to see better performance and believe the steps we're taking will deliver that," Broadbent #TescoAGM
11.21am BST
Tesco is defending its turnaround strategy, saying that it's better to sacrifice some sales in the short term if it leads to better long-term prospects.
Sir Richard says running business defensively for short term gains would be wrong and mean Tesco was neglecting duties to staff and investor
Broadbent: "We want to see better performance" #tesco
11.17am BST
Shareprice down, sales in decline, Chairman of Tesco tells shareholders "living through a period of radical change" pic.twitter.com/qUgTHY71UZ
11.15am BST
Britain's largest supermarket is face to face with its shareholders, as the Tesco AGM begins.
Tesco chairman, Sir Richard Broadbent, speaks first -- blaming tough market conditions for the company's weak share price performance over the last year.
Broadbent: "We know the share price performance has been poor" Murmurs of "yes" from the share holder audience #tesco
Tesco chairman Sir Richard Broadbent admits its share price performance has been "poor" over the last year
11.08am BST
Back to this morning's UK growth data.... and Martin Beck, senior economic advisor to the EY ITEM Club, says the economy is moving from balanced recovery to expansion.
Beck says:
The foundations of growth in consumer spending are looking a bit firmer. For the first time in almost a year, GDP increased without the need for households to save a smaller proportion of their incomes. The household saving ratio in Q1 rose a touch, against widespread expectations that it would see another quarterly drop. And there was good news on rebalancing. Investment is playing an increasingly important role in driving growth, with capital spending in Q1 growing at its fastest rate since 2007.
There were also signs of an easing in imbalances in the UKs overseas position. The current account deficit narrowed in Q1, although it still remains very large by historical standards, and net trade contributed to growth. The deficit in investment income, which has been largely responsible for the ballooning current account deficit in recent quarters, saw a welcome fall. Overall it looks like the UK growth engine is now firing on all cylinders.
11.03am BST
Oh wait, we do have protestors. Tesco has dumped 184 lorry drivers in Doncaster pic.twitter.com/1r0fXK4rZp
11.01am BST
Our retail correspondent Zoe Wood is tweeting from the Tesco AGM:
ShareAction also handing over a petition with 32,000 signatures demanding intro of Living Wage for Tesco workers
Amusing mix of Tesco shareholders and hipsters attending Ted conference in same building.
No sign of Sir Terry Leahy or Lord MacLaurin amid a sea of grey-haired shareholders
11.00am BST
Tesco shareholders are gathering at The Queen Elizabeth II Conference Centre in Westminster, for today's annual general meeting.
Amusing mix of Tesco shareholders and hipsters attending Ted conference in same building.
Todays demo is designed to drive home to Tescos shareholders what the company has unfairly done to our members, so the shareholders know that the companys reputation will suffer as a result.
Ex-Tesco drivers protest at Tesco AGM in London over 'unfair dismissals' at 11am today http://t.co/1H5n7nsgA4 pic.twitter.com/yZx4TQbBWU
10.55am BST
This is disappointing -- confidence in the eurozone has fallen this month.
Firms and consumers are fretting about the weakness of the recovery at home, and rising geopolitical tensions abroad.
Amongst the largest euro area economies, the ESI eased in Germany (-1.3), France (-1.2) and Italy (-1.0), while it increased in the Netherlands (+0.7) and, more significantly, in Spain (+2.2). Worth highlighting is the 4.6 points rise in Greece, bringing its ESI above the long-term average for the first time since August 2008.
10.44am BST
Chris Williamson of data firm Markit is encouraged that UK business investment has risen by 10% compared to a year ago; it bodes well for growth through 2014.
UK business investment +10.7% on year ago in Q1. PMI orders point to ongoing growth for rest of year, though waning pic.twitter.com/cBcyddw09S
10.31am BST
Despite growing solidly in the last quarter, Britain hasn't made much progress in improving its balance of payments with the rest of the world.
10.20am BST
The end of an era is looming in Kent. Model maker Hornby is closing its warehouse on the South Coast, in a move that could see it leave its historic home.
10.07am BST
Oh, and you can see the data here.
10.06am BST
The ONS also revised up its estimate for UK manufacturing growth, to +1.5% (from +1.4% before).
This is the largest increase in manufacturing output since the second quarter of 2010.
9.59am BST
So, why wasn't the UK growth rate for the last quarter revised higher, as some economists had expected given strong reports from the construction sector?
Well,the ONS did indeed revise its estimate for construction output to +1.5%, a big jump on the +0.6% first estimated.
9.53am BST
And here's another chart from today's GDP report, showing how slow the UK recovery has been compared to previous downturns:
9.48am BST
The UK economy was 0.6% away from its pre-crisis peak at the end of the last quarter, the ONS says.
9.41am BST
Here's an encouraging fact in the growth data - UK firms invested more than previously thought in the first three months of 2014, making a big contribution to growth.
The ONS reports that business investment rose by 5.0% in the quarter, up from a previous estimate of 2.7%. That means it was responsible for 0.4% of growth, or half the total expansion.
More important than the YoY 10.6% rise in business investment is that it appears to have escapted see-saw period pic.twitter.com/40JuISfJsm
GDP stats - Strong business investment means a more balanced recovery but real household income down.
9.32am BST
JUST: The UK economy grew at 0.8% in the first three months of 2014, the Office for National Statistics reports. That's in line with the previous estimate.
But the annual growth over the rate has been revised down a little, to +3.0 from +3.1%.
9.29am BST
Nearly time for the UK growth data...
9.21am BST
Upbeat news from Italy, where factory owners report that they are more optimist than at any time since the early days of the eurozone crisis.
Business morale has risen to a three year high, statistics body ISTAT reported, reaching 100.0 on its monthly index. That's the strongest reading since June 2011 -- just before Italy fell into recession.
*ITALIAN JUNE BUSINESS CONFIDENCE RISES TO 100.0 FROM 99.8 highest since June 2011
8.58am BST
Jeremy Cook of World First reckons the UK Office for National Statistics may revise up its estimate for UK growth in January-March (from 0.8%), in 30 minutes time.
He says:
UK GDP has the very real chance of being revised higher this morning following strong March surveys in construction and services output. We think that GDP will move to 0.9% on the quarter a far cry from the numbers seen in France, Germany or the US.
World First Morning Update 27th June - Japan inflation surges higher but wages lag, UK GDP and German inflation due - http://t.co/BwS9O8yoxo
8.50am BST
Here's Reuters take on Mark Carney's appearance on the Today programme:
Britain's economy is still relatively vulnerable, Bank of England Governor Mark Carney said on Friday, citing high levels of household debt.
"This is an economy that's just come off its worst recession in modern history, that still is relatively vulnerable," Carney told BBC radio.
Mark Carney is a politician - and John Humphreys should treat him as such rather than going into "dignitary" mode and softpeddling this iv
8.47am BST
Joshua Raymond, analyst at City Index, predicts that Tesco will avoid a shareholder revolt today, but will probably face tough questions from investors given its underperformance in recent quarters:
#tesco AGM today. Clarke & board votes expected to go fine but expect some drama given the lack of turnaround progress & exec abandonment
8.42am BST
Here's some instant reaction to Mark Carney's interview on Radio 4 this morning:
Thanks, that's useful. *CARNEY SAYS RATE INCREASE COULD COME THIS YEAR OR IN 2015
@fwred @graemewearden Borrowers need to take responsibility for their own futures & not rely on the words of someone in a stronger position.
'the old normal is not the new normal' - Carney signals 2.5% interest rate by 2017 #r4today
Carney treading fine line on #r4today. Acknowledges drag of household debt & housing bubble on econ but avoiding talk on how to reverse them
BOE's Carney says rate increase could come this year or in 2015...well that one helps clear that up then...back to the tea leaves #ukhousing
8.39am BST
Bank of England governor Mark Carney just dropped a hint that UK interest rates could be around 2.5% in three year's time (from their record low of 0.5% today).
Carney was being interviewed on Radio 4's Today Programme, and told the nation that interest rates could start rising this year, or alternatively not until 2015 (indeed....).
Carney: Sees "Normal" Interest Rate Around 2.5%, Versus 5% Historic Average
Mark Carney: "In order to bring the economy back to full employment...the new normal is materially lower than the old normal #r4today
8.23am BST
We also have confirmation that France's economy stagnated in the first three months of this year.
Statistics bosy INSEE reported that France's GDP "held steady" (that's one way of putting it) in January-March period.
Either way, 0% growth in France in Q1 is still times better than the US.
8.07am BST
Good morning, and welcome to our rolling coverage of the financial markets, the economy, business and the eurozone.
Two events coming up on an otherwise quiet-ish Friday.
Friday's Guardian front page - "Savile: reign of abuse across NHS exposed" #tomorrowspaperstoday #bbcpapers pic.twitter.com/wKUX3puPwq
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