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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/oct/13/pound-sterling-brexit-price-row-tesco-unilever-live
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| Unilever and Tesco resolve Brexit price rise row – Business live | |
| (35 minutes later) | |
| 5.54pm BST | |
| 17:54 | |
| Unilever: We've resolved the Tesco dispute | |
| NEWSFLASH: The Brexit price wars are over. | |
| Unilever just issued a statement saying that the dispute with Tesco has been “successfully” resolved. | |
| The Anglo-Dutch group says: | |
| Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved. We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available. | |
| For all those that missed us, thanks for all the love. | |
| MARMITE-GATE IS OVERUnilever pleased to confirm the supply situation with Tesco in the UK and Ireland has now been successfully resolved. | |
| However, we don’t (yet) know whether Unilever has abandoned its attempt to hike prices, or whether Tesco has agreed to the price increases, or whether the two sides have met in the middle. | |
| 5.34pm BST | |
| 17:34 | |
| Donald Tusk’s warning that Britain can’t have a soft Brexit could worry UK firms. | |
| Trade insurance group Euler Hermes has warned that more companies would be driven under by a hard Brexit than a more conciliatory divorce. | |
| But either way, the prospects aren’t great. | |
| The FT has the details: | |
| A hard Brexit — a complete break with no access to the single market — would increase the risk of more bankruptcies, it says. | |
| Under a soft Brexit it predicts that 25,170 businesses will fail in 2019. Under a hard Brexit that rises to 26,570. | |
| New forecasts show that a hard Brexit would put 1,400 more UK companies into insolvency than a soft Brexit https://t.co/MLxHghjUjH | |
| 5.16pm BST | 5.16pm BST |
| 17:16 | 17:16 |
| Tusk: It's Hard Brexit or no Brexit | Tusk: It's Hard Brexit or no Brexit |
| NEWSFLASH: Donald Tusk, president of the European Council, is dismissing the idea that Britain could secure a so-called soft Brexit. | NEWSFLASH: Donald Tusk, president of the European Council, is dismissing the idea that Britain could secure a so-called soft Brexit. |
| Speaking in Brussels, Tusk argues that Britain cannot expect to retain many of the benefits of EU membership while also leaving the bloc. | Speaking in Brussels, Tusk argues that Britain cannot expect to retain many of the benefits of EU membership while also leaving the bloc. |
| Instead, he hinted that the prospect of a hard Brexit might force the UK to rethink leaving at all. | Instead, he hinted that the prospect of a hard Brexit might force the UK to rethink leaving at all. |
| Tusk says: | Tusk says: |
| “It is useless to speculate about ‘soft Brexit. | “It is useless to speculate about ‘soft Brexit. |
| These would be purely theoretical speculations. In my opinion, the only real alternative to a ‘hard Brexit’ is ‘no Brexit’. Even if today hardly anyone believes in such a possibility.” | These would be purely theoretical speculations. In my opinion, the only real alternative to a ‘hard Brexit’ is ‘no Brexit’. Even if today hardly anyone believes in such a possibility.” |
| Some UK ministers has argued that terms like ‘hard Brexit’ have little meaning, and that they could carve out a good deal that gave Britain access to the single market while also restricting migration. | Some UK ministers has argued that terms like ‘hard Brexit’ have little meaning, and that they could carve out a good deal that gave Britain access to the single market while also restricting migration. |
| The only real alternative to a "hard Brexit" is "no Brexit". Even if today hardly anyone believes in such a possibility. pic.twitter.com/iFRfHUIO4w | The only real alternative to a "hard Brexit" is "no Brexit". Even if today hardly anyone believes in such a possibility. pic.twitter.com/iFRfHUIO4w |
| The essence of Brexit as defined in the UK referendum campaign means radically loosening relations with the EU, a de facto "hard Brexit" | The essence of Brexit as defined in the UK referendum campaign means radically loosening relations with the EU, a de facto "hard Brexit" |
| Tusk also seemed to rubbish the idea (popular with foreign secretary Boris Johnson) that Britain could have its Brexit cake and eat it. | Tusk also seemed to rubbish the idea (popular with foreign secretary Boris Johnson) that Britain could have its Brexit cake and eat it. |
| #Tusk:"#Brexit will be a loss for all of us. There will be no cake on the table, only salt and vinegar" #EPC20 | #Tusk:"#Brexit will be a loss for all of us. There will be no cake on the table, only salt and vinegar" #EPC20 |
| Hopefully there’ll be Marmite on the table too.... | Hopefully there’ll be Marmite on the table too.... |
| 5.06pm BST | 5.06pm BST |
| 17:06 | 17:06 |
| Shares in Tesco and Unilever have both fallen today, as investors anticipated the Marmite price wars turning uglier. | Shares in Tesco and Unilever have both fallen today, as investors anticipated the Marmite price wars turning uglier. |
| Tesco’s shares fell 3% to 196p, while Unilever shed 3.4% to £36.51. | Tesco’s shares fell 3% to 196p, while Unilever shed 3.4% to £36.51. |
| 5.00pm BST | 5.00pm BST |
| 17:00 | 17:00 |
| European stock markets suffer a bad day | European stock markets suffer a bad day |
| It’s been a ropey day in the financial markets, as investors have fretted about the global economy. | It’s been a ropey day in the financial markets, as investors have fretted about the global economy. |
| All the main European stock markets ended in the red, with the FTSE 100 dropping 46 points to 6977. Mining stocks were the big losers. | All the main European stock markets ended in the red, with the FTSE 100 dropping 46 points to 6977. Mining stocks were the big losers. |
| The City was depressed by the overnight news that Chinese exports shrank by 10% year-on-year in September. | The City was depressed by the overnight news that Chinese exports shrank by 10% year-on-year in September. |
| Shares are also falling on Wall Street, where traders are also wondering whether the Federal Reserve should really raise interest rates soon. | Shares are also falling on Wall Street, where traders are also wondering whether the Federal Reserve should really raise interest rates soon. |
| Chris Beauchamp, Chief Market Analyst at IG, says: | Chris Beauchamp, Chief Market Analyst at IG, says: |
| Wall Street has joined in the general flight from risk this afternoon, with the overnight Chinese export data still the chief culprit (although in fairness Bob Dylan being awarded a Nobel Prize would probably make anyone lose their faith in the future). | Wall Street has joined in the general flight from risk this afternoon, with the overnight Chinese export data still the chief culprit (although in fairness Bob Dylan being awarded a Nobel Prize would probably make anyone lose their faith in the future). |
| 4.43pm BST | 4.43pm BST |
| 16:43 | 16:43 |
| There not much support for Unilever in the English town where Marmite is produced. | There not much support for Unilever in the English town where Marmite is produced. |
| Nazia Parveen, our North of England correspondent, has paid a flying visit to Burton upon Trent. And she found that many people believe Unilever is pushing its luck by trying to hike prices by 10%. | Nazia Parveen, our North of England correspondent, has paid a flying visit to Burton upon Trent. And she found that many people believe Unilever is pushing its luck by trying to hike prices by 10%. |
| One resident, 70-year old Dennis, is even planning to boycott Unilever (echoing Tory MP David Davies earlier today). | One resident, 70-year old Dennis, is even planning to boycott Unilever (echoing Tory MP David Davies earlier today). |
| “Everything about Marmite is local - the workers, the ingredients - so ultimately I do not understand their argument and it is just downright profiteering. | “Everything about Marmite is local - the workers, the ingredients - so ultimately I do not understand their argument and it is just downright profiteering. |
| We do like our Marmite as a family, especially our daughter, but we’re now going to boycott their products as we’ve had enough of Unilever holding local businesses and their own workers to ransom.” | We do like our Marmite as a family, especially our daughter, but we’re now going to boycott their products as we’ve had enough of Unilever holding local businesses and their own workers to ransom.” |
| Here’s the full story: | Here’s the full story: |
| Updated | Updated |
| at 4.48pm BST | at 4.48pm BST |
| 4.24pm BST | 4.24pm BST |
| 16:24 | 16:24 |
| This photo shows some of the scores of produces which Unilever supplies to UK retailers. | This photo shows some of the scores of produces which Unilever supplies to UK retailers. |
| Many of them (unlike Marmite) will be produced abroad or rely on imported raw materials, thus vulnerable to the weaker pound. | Many of them (unlike Marmite) will be produced abroad or rely on imported raw materials, thus vulnerable to the weaker pound. |
| 4.15pm BST | 4.15pm BST |
| 16:15 | 16:15 |
| Sky News’s Faisal Islam reckons Marmite lovers shouldn’t panic: | Sky News’s Faisal Islam reckons Marmite lovers shouldn’t panic: |
| Plentiful supplies in this West London Tesco Express... don't want to encourage hoarding .... pic.twitter.com/HgPpqFsNOP | Plentiful supplies in this West London Tesco Express... don't want to encourage hoarding .... pic.twitter.com/HgPpqFsNOP |
| 4.06pm BST | 4.06pm BST |
| 16:06 | 16:06 |
| 3.50pm BST | 3.50pm BST |
| 15:50 | 15:50 |
| Expect New Year price hikes | Expect New Year price hikes |
| Steve Dresser, retail analyst at Grocery Insight, expects retailers to hike prices in January - once the Christmas season is behind them. | Steve Dresser, retail analyst at Grocery Insight, expects retailers to hike prices in January - once the Christmas season is behind them. |
| He says: | He says: |
| “No one wants to put prices up ahead of Christmas. Others may just wait until January.” | “No one wants to put prices up ahead of Christmas. Others may just wait until January.” |
| “It’s only going to get more painful.” | “It’s only going to get more painful.” |
| Dresser also reckons Tesco is winning the PR battle so far, rather than being accused of bullying suppliers. | Dresser also reckons Tesco is winning the PR battle so far, rather than being accused of bullying suppliers. |
| Is remarkable to consider that Tesco have come out well here; fighting price rises - in 2011 with Premier, was more about big bad Tesco. | Is remarkable to consider that Tesco have come out well here; fighting price rises - in 2011 with Premier, was more about big bad Tesco. |
| PR / rebranding efforts are working well it appears.... Fact is no one wants price hikes pre Christmas. But they are coming..... | PR / rebranding efforts are working well it appears.... Fact is no one wants price hikes pre Christmas. But they are coming..... |
| 3.39pm BST | 3.39pm BST |
| 15:39 | 15:39 |
| Media monitoring group Newton Insight report that the Tesco-Unilever spat has created particular interest in London, Scotland and Manchester (three places that voted to stay in the EU...). | Media monitoring group Newton Insight report that the Tesco-Unilever spat has created particular interest in London, Scotland and Manchester (three places that voted to stay in the EU...). |
| And more men than women are opining.... | And more men than women are opining.... |
| How are the UK's customers responding on social media to the #Unilever and #Marmite price hike? NEWTON Insight looks at the #data. pic.twitter.com/HYoeg9J3PR | How are the UK's customers responding on social media to the #Unilever and #Marmite price hike? NEWTON Insight looks at the #data. pic.twitter.com/HYoeg9J3PR |
| Updated | Updated |
| at 3.49pm BST | at 3.49pm BST |
| 3.20pm BST | 3.20pm BST |
| 15:20 | 15:20 |
| This is the defence for Unilever trying to hike the cost of Marmite, even through it’s made in Britain rather than imported. | This is the defence for Unilever trying to hike the cost of Marmite, even through it’s made in Britain rather than imported. |
| Why hard 2 fathom? #Unilever report earnings in € so must hike GBP prices to counter GBP weakness. Doesnt matter if Marmite is made in UK. | Why hard 2 fathom? #Unilever report earnings in € so must hike GBP prices to counter GBP weakness. Doesnt matter if Marmite is made in UK. |
| 2.33pm BST | 2.33pm BST |
| 14:33 | 14:33 |
| Clive Lewis MP, Labour’s Shadow Business Secretary, is also concerned that UK shoppers are going to be hit in the pocket: | Clive Lewis MP, Labour’s Shadow Business Secretary, is also concerned that UK shoppers are going to be hit in the pocket: |
| “Once again the public are paying the price for Tory failure to make any contingency plans for Brexit. | “Once again the public are paying the price for Tory failure to make any contingency plans for Brexit. |
| This is unlikely to stop at a Marmite shortage – more and more retailers are going to be squeezed by higher import prices in the coming months, as hedging contracts end and the cheaper pound starts to squeeze margins.” | This is unlikely to stop at a Marmite shortage – more and more retailers are going to be squeezed by higher import prices in the coming months, as hedging contracts end and the cheaper pound starts to squeeze margins.” |
| 2.19pm BST | 2.19pm BST |
| 14:19 | 14:19 |
| Politics professor Philip Cowley has trawled through some recent polling data, and found that Liberal Democrat voters will be particularly hurt by the Tesco-Unilever standoff. | Politics professor Philip Cowley has trawled through some recent polling data, and found that Liberal Democrat voters will be particularly hurt by the Tesco-Unilever standoff. |
| It's Lib Dems who are hurting most. #Marmite pic.twitter.com/lcD4p1hVwD | It's Lib Dems who are hurting most. #Marmite pic.twitter.com/lcD4p1hVwD |
| But a jump in poultry prices could cause Theresa May’s party some grief: | But a jump in poultry prices could cause Theresa May’s party some grief: |
| This'll get real if chicken is affected. pic.twitter.com/6QcT0UxhTH | This'll get real if chicken is affected. pic.twitter.com/6QcT0UxhTH |
| Updated | Updated |
| at 2.19pm BST | at 2.19pm BST |
| 1.59pm BST | 1.59pm BST |
| 13:59 | 13:59 |
| Labour MP Stephen Kinnock says the Marmite price wars show that Brexiteers’ optimism about leaving the EU was ill-founded. | Labour MP Stephen Kinnock says the Marmite price wars show that Brexiteers’ optimism about leaving the EU was ill-founded. |
| “When the plunging pound stops you from getting PG Tips and Marmite in the supermarket, you’re truly starting to feel the first tremors of Brexit. | “When the plunging pound stops you from getting PG Tips and Marmite in the supermarket, you’re truly starting to feel the first tremors of Brexit. |
| “David Davis’s claims that there were no downsides to Brexit are colliding with economic reality. The best thing the Government can do for economic confidence and the pound is to commit now to starting the upcoming negotiations on the basis of securing full and unrestricted access to the single market.” | “David Davis’s claims that there were no downsides to Brexit are colliding with economic reality. The best thing the Government can do for economic confidence and the pound is to commit now to starting the upcoming negotiations on the basis of securing full and unrestricted access to the single market.” |
| One clarification: Tesco has insisted that Unilever products are still available in stores today, but not from its website. | One clarification: Tesco has insisted that Unilever products are still available in stores today, but not from its website. |
| 1.55pm BST | 1.55pm BST |
| 13:55 | 13:55 |
| The Press Association has been out and about, snapping Unilever products on Tesco shelves: | The Press Association has been out and about, snapping Unilever products on Tesco shelves: |