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Pound falls to $1.22 as Brexit sparks Marmite price row – business live Pound falls to $1.22 as Brexit sparks Marmite price row – business live
(35 minutes later)
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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.
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.”
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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/lcD4p1hVwDIt'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/6QcT0UxhTHThis'll get real if chicken is affected. pic.twitter.com/6QcT0UxhTH
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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.
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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:
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Reality is starting to bite about the practical impact of leaving the EU, writes our columnist Polly Toynbee.Reality is starting to bite about the practical impact of leaving the EU, writes our columnist Polly Toynbee.
Unilever says all its prices must rise by 10% – which is still less than the 15% fall in the pound, so expect worse to come.Unilever says all its prices must rise by 10% – which is still less than the 15% fall in the pound, so expect worse to come.
The Unilever spat with Tesco over who pays is just a sideshow, as other retailers warn of steep price rises, as we import so many essentials. BT’s chairman says imported phones and broadband hubs are already up 10%. Each day the Financial Times reports more banks declaring they are moving significant functions abroad, while car manufacturers look to invest elsewhere in the EU for their new models.The Unilever spat with Tesco over who pays is just a sideshow, as other retailers warn of steep price rises, as we import so many essentials. BT’s chairman says imported phones and broadband hubs are already up 10%. Each day the Financial Times reports more banks declaring they are moving significant functions abroad, while car manufacturers look to invest elsewhere in the EU for their new models.
As prices rise, the great majority of the population, whose incomes have been stagnant for nearly a decade, will see their living standards fall....As prices rise, the great majority of the population, whose incomes have been stagnant for nearly a decade, will see their living standards fall....
Here’s her full take:Here’s her full take:
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We could get an explosion of rows between retailers and suppliers over price hikes early next year, reckons Markus Kuger of Dun & Bradstreet, the credit and risk firm.We could get an explosion of rows between retailers and suppliers over price hikes early next year, reckons Markus Kuger of Dun & Bradstreet, the credit and risk firm.
He says UK firms are on “high alert”, and need to assess the impact of the weaker poudn on their customers and supplier now.He says UK firms are on “high alert”, and need to assess the impact of the weaker poudn on their customers and supplier now.
Companies, and particularly retailers, will be keen to reach the end of the year with little or no price increase. What happens in the new year is yet to be seen: Article 50 is likely to be invoked, and consumers will likely begin to feel the impact of the falling value of the pound.Companies, and particularly retailers, will be keen to reach the end of the year with little or no price increase. What happens in the new year is yet to be seen: Article 50 is likely to be invoked, and consumers will likely begin to feel the impact of the falling value of the pound.
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Money transfer firm AFEX has cut its forecast for the pound, as the push towards Brexit continues.Money transfer firm AFEX has cut its forecast for the pound, as the push towards Brexit continues.
Analyst Trevor Charsley reckons sterling will lose another 5% over the next five months, even if a legal challenge launched today succeeds.Analyst Trevor Charsley reckons sterling will lose another 5% over the next five months, even if a legal challenge launched today succeeds.
“Sterling is going to remain under severe pressure in the near term as it continues to act as the release valve for market sentiment over the Brexit process. At the moment, the UK government is facing a legal challenge over parliamentary approval for Brexit.“Sterling is going to remain under severe pressure in the near term as it continues to act as the release valve for market sentiment over the Brexit process. At the moment, the UK government is facing a legal challenge over parliamentary approval for Brexit.
If the government loses in the high court, there will be pandemonium and the possible start of a constitutional crisis while if it wins, the ‘hard’ Brexit course will be pursued and we’ve already seen what the market thinks of that. Either way it’s a lose-lose for sterling.If the government loses in the high court, there will be pandemonium and the possible start of a constitutional crisis while if it wins, the ‘hard’ Brexit course will be pursued and we’ve already seen what the market thinks of that. Either way it’s a lose-lose for sterling.
We think that we could see Sterling reach $1.15 against the Dollar by the end of Q1 2017.”We think that we could see Sterling reach $1.15 against the Dollar by the end of Q1 2017.”
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Prime minister Theresa May’s spokeswoman has confirmed that the government aren’t taking sides between Tesco and Unilever.Prime minister Theresa May’s spokeswoman has confirmed that the government aren’t taking sides between Tesco and Unilever.
“It is a decision for companies how they market and sell their products ... It is a commercial decision.”“It is a decision for companies how they market and sell their products ... It is a commercial decision.”
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Conservative backbench MP David Davies* has launched a one-man Marmite boycott.Conservative backbench MP David Davies* has launched a one-man Marmite boycott.
So Unilever using Marmite prices to punish us for Brexit. toast-spread fight back starts here. From now on It's Aussie made Vegemite for me. pic.twitter.com/vHHxNeoloySo Unilever using Marmite prices to punish us for Brexit. toast-spread fight back starts here. From now on It's Aussie made Vegemite for me. pic.twitter.com/vHHxNeoloy
* - Not to be confused with David Davis, the Brexit secretary, whose views on yeast-based spreads are unknown* - Not to be confused with David Davis, the Brexit secretary, whose views on yeast-based spreads are unknown
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Wise words from the Bishop of Burnley:Wise words from the Bishop of Burnley:
The real story here is not Tesco v Unilever but rising food prices and impact on the poor. Let's hope the food banks are Brexit-ready.The real story here is not Tesco v Unilever but rising food prices and impact on the poor. Let's hope the food banks are Brexit-ready.
Is the disappearance of Marmite from Tescos really more important than the laying-waste of Aleppo?Is the disappearance of Marmite from Tescos really more important than the laying-waste of Aleppo?
Here’s our latest piece on the atrocities taking place in Syria’s second-largest city:Here’s our latest piece on the atrocities taking place in Syria’s second-largest city:
Ground down by savagery – the agony of AleppoGround down by savagery – the agony of Aleppo
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Professor Andrew Fearne, of the University of East Anglia’s Norwich Business School also expects more Brexit price rows.Professor Andrew Fearne, of the University of East Anglia’s Norwich Business School also expects more Brexit price rows.
The price dispute between Tesco and Unilever is the first of many stand-offs that are inevitable as the implications of Brexit kick in and companies try to navigate a sustainable way forward.The price dispute between Tesco and Unilever is the first of many stand-offs that are inevitable as the implications of Brexit kick in and companies try to navigate a sustainable way forward.
The problem is that some companies will use the exchange rate as a vehicle for negotiating price rises that are a) avoidable and b) could leave some of their customers un-competitive, if they agree to pay more when others refuse.The problem is that some companies will use the exchange rate as a vehicle for negotiating price rises that are a) avoidable and b) could leave some of their customers un-competitive, if they agree to pay more when others refuse.
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The government isn’t keen to be dragged into the Tesco-Unilever Brexit price battle:The government isn’t keen to be dragged into the Tesco-Unilever Brexit price battle:
*Breaking*Leader of House David Lidington: "it's not for the Government to intervene" in dispute between 2 commercial companies.#Marmite*Breaking*Leader of House David Lidington: "it's not for the Government to intervene" in dispute between 2 commercial companies.#Marmite
However, Lidlington may smell a Marmite-scented rat:However, Lidlington may smell a Marmite-scented rat:
BREAK David Lidington, Cabinet minister tells MPs: "The ingredients (of Marmite) are not imported but are manufactured and supplied here."BREAK David Lidington, Cabinet minister tells MPs: "The ingredients (of Marmite) are not imported but are manufactured and supplied here."
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High street chain WH Smith has revealed that it is also facing a hit from the slide in sterling.High street chain WH Smith has revealed that it is also facing a hit from the slide in sterling.
The company took out a hedge against a stronger dollar, but it runs out next year, meaning imported stationery will cost more.The company took out a hedge against a stronger dollar, but it runs out next year, meaning imported stationery will cost more.
CEO Stephen Clarke says Smiths is hoping to negotiate better prices from suppliers, and squeeze costs where possible.CEO Stephen Clarke says Smiths is hoping to negotiate better prices from suppliers, and squeeze costs where possible.
“Since June 24, we have been talking to our suppliers and factories, looking at how we can reduce cost that might come through by consolidation of factories or through other productivity initiatives.”“Since June 24, we have been talking to our suppliers and factories, looking at how we can reduce cost that might come through by consolidation of factories or through other productivity initiatives.”
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The government responds....The government responds....
David Lidington tries to calm fears of marmite shortage - reassures Jeremy Corbyn there is a "wealth" of organic alternatives in IslingtonDavid Lidington tries to calm fears of marmite shortage - reassures Jeremy Corbyn there is a "wealth" of organic alternatives in Islington
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