Summary

  • Tesco and Unilever resolve product dispute

  • Young could get early access to pension

  • MPs to vote on Sir Philip Green knighthood

  • Lord Wolfson offers £250,000 prize for solution to congested roads

  1. Gorilla tactics?published at 08:04 British Summer Time 13 October 2016

    More now on the row between Tesco and Unilever over price increases, this time from industry analysts at Bernstein ...

    Quote Message

    It's the supplier's role to pass on increased cost and it is retailer's job to challenge price increases. It happens all the time and in the end they settle for what seems a fair cost allocation. However, those discussions rarely spill open in public and rarely lead to de-listings. Clearly the scale of the negotiation is much bigger than usual, but so is the event. Brexit-sized events are rare. This is such a large event that it may simply be that the two gorillas on both sides have decided to go through the motions of the negotiation on behalf of the industry. This isn't about Tesco or Unilever but about all UK retailers & suppliers.

    Bruno Monteyne and Andrew Wood, Analysts, Bernstein

  2. Spread the wordpublished at 08:03 British Summer Time 13 October 2016

    MarmiteImage source, Getty Images

    The disappearance of Marmite, PG Tips and other household names from Tesco's website has got us thinking here at Business Live towers.

    What branded goods could you not do without? 

    Would you be willing to put up with a price increase to still get your fix? 

    The shortage is mainly online at the moment, but have you any photos of gaps on Tesco shelves?

    Let us know at bizlivepage@bbc.co.uk, or tweet us at @danielmacadam or @karen_hoggan.

  3. Weak demand weighs on China exportspublished at 07:51

    Wall Street Journal tweets

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  4. Sky's performance boosted by stronger europublished at 07:37 British Summer Time 13 October 2016

    Sky logoImage source, Sky Deutschland

    Broadcaster Sky has reported, external a 7% jump in revenues to £3.1bn for the three months to the end of September. 

    However, when currency fluctuations are taken into account group revenues were up by 13% with its "euro revenues benefitting from the stronger currency".

    The company said it launched a new streaming service in Germany; Ultra HD in the UK, Ireland, Germany and Austria; and better mobile TV in Italy during the quarter.

    "I'm pleased with the start we have made to the year, with like-for-like revenue growth of over 5% and more than 100,000 new customers joining Sky," said group chief executive Jeremy Darroch.  

    The company describes the quarter as "strong" and says it's on track for its full year expectations.   

  5. Sports Direct loses finance chiefpublished at 07:27 British Summer Time 13 October 2016

    Sports DirectImage source, Getty Images

    The chief financial officer of Sports Direct has resigned, just weeks after the sportswear retailer's chief executive left the company. 

    Matt Pearson, who stepped in as acting finance chief last year, will leave at the end of the 2016, external to take up a job elsewhere.

    Founder Mike Ashley, who took over as chief executive at the end of September, said: "Matt has been a valued member of the Sports Direct family for over nine years and he will be a loss to the company. I wish him all the best for the future and would like to thank him for his time at Sports Direct."  

  6. Unilever sales risepublished at 07:14 British Summer Time 13 October 2016
    Breaking

    UnileverImage source, Reuters

    Unilever has just reported underlying sales growth of 4.2%, external (which strips out currency movements and corporate deal costs) in the last nine months to €39.7bn (£35.9bn). 

    The consumer goods giant, which makes Marmite and a range of other household brands, doesn't refer to its dispute with Tesco in the results, nor does it break out its performance in the UK.

    However, it does say that its "markets in Europe remained challenging with subdued volume growth and continued price deflation in many countries". 

  7. Tremor in the bond marketpublished at 07:14 British Summer Time 13 October 2016

    Today Programme
    BBC Radio 4

    Bank of EnglandImage source, PA

    The yield on 10-year gilts continued to rise yesterday as investors sell off the bonds. Higher gilt yields push up the cost of servicing Britain's national debt and financing the deficit. 

    Mike Amey, managing director of Pimco - the world's biggest bond investor - says gilt traders are keeping an eye on inflation risks and Chancellor Philip Hammond's government spending plans.

    Although there's been quite a big sell off in bond markets over the past few weeks, markets are likely to wait and see what the Chancellor has to say in his autumn statement in a month's time, Mr Amey tells Today.

  8. Storm in a cup of PG Tips?published at 07:01 British Summer Time 13 October 2016

    Quote Message

    Fortunately history tells us that these types of robust negotiations tend to be settle within weeks rather than months.

    Bryan Roberts, Retail analyst, TCC Global

  9. Do discounters have the upper hand?published at 06:56 British Summer Time 13 October 2016

    BBC Radio 5 live

    Exterior of Aldi storeImage source, PA

    More now on those negotiations between Tesco and Unilever over price rises. On Wake up to Money Bryan Roberts reckons the likes of Aldi and Lidl are in a stronger position in supplier negotiations.  

    "The discounters are a lot less reliant on the big brands than their supermarket competitors. They're about between 60% and 85% private label so they've got a lot more wiggle room when it comes to dealings with the big brands and also they actually source a lot more from within the UK than most of their supermarket peers, so arguably Aldi and Lidl are in a much better position when it comes to dealing with the impact of Brexit.

    "You throw in the fact that people like Asda and Tesco source a huge amount of non-food items from Asia, for example, that puts even more pressure on them as the value of sterling continues to drop." 

  10. Fuel prices 'set to rise'published at 06:49 British Summer Time 13 October 2016

    Today Programme
    BBC Radio 4

    Petrol pumpImage source, Getty Images

    Ewen Cameron Watt, a senior director of the BlackRock Investment Institute, says there's a well-documented time lag between a major move in the currency - such as we've seen over the last six months - and inflation.

    "We'll see that in fuel prices at the pump rising in the next week or so," he tells Today. 

    Petrol prices will go up, not just because of the weaker pound but also because the price of oil has risen, he says.

  11. You either love it or hate itpublished at 06:35 British Summer Time 13 October 2016

    Twitter reacts, and gently pokes fun, at the shortage of Marmite and other household brands on Tesco's website.

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  12. Tesco, Unilever and shoppers will 'share the pain'published at 06:29 British Summer Time 13 October 2016

    Today Programme
    BBC Radio 4

    Tesco shopperImage source, Getty Images

    The dispute between Tesco and major supplier Unilever is likely to end in a small price increase for shoppers, according to one retail expert.

    Bryan Roberts from TCC Global consultancy says all three parties - the supplier, retailer and the shopper - will likely "share the pain" of the fall in the value of the pound.

    Unilever has been very open and said price increases will happen as a result of Brexit, Mr Roberts tells Today.

    Tesco said last week it will do everything in its power to make sure it's not passed on to the consumer, he adds. 

    But in the end these disputes often end with the prices going up slightly.

  13. Unilever and Tesco at loggerheadspublished at 06:25 British Summer Time 13 October 2016

    Simon Jack
    BBC Business Editor

    Tesco storeImage source, Reuters

    It was bound to happen sooner or later. 

    Both the boss of Unilever and the boss of Tesco have previously warned that the fall in the value of the pound since Brexit could see the price of some products rise. They are not seeing eye to eye now. 

    A Unilever demand for a 10% rise in the wholesale price of many well-known brands has seen the UK's biggest retailer dig in its heels. 

    Tesco boss Dave Lewis was a senior executive at Unilever, so is in a good position to read the Anglo-Dutch company's hand in this game of grocery poker.

    Read more of Simon's blog here.

  14. China data sends shares lowerpublished at 06:18 British Summer Time 13 October 2016

    Stock boardImage source, Getty Images

    Japanese shares reversed early gains this Thursday morning as exporters were hit by a strengthening yen after China released worse-than-expected trade data fueling concerns about the region's economic engine.  

    The Nikkei 225 is down by 0.4% while in China, the Shanghai Composite is flat and Hong Kong's Hang Seng has fallen by 1.1%. 

    Australia's ASX 200 is down by 0.7% while in South Korea, the Kospi is 0.5% lower. 

  15. Tesco takes on maker of Marmite over pricepublished at 06:13 British Summer Time 13 October 2016

    BBC Radio 5 live

    Marmite jars at Tesco Online showing that they're out of stockImage source, Tesco

    Tesco has stopped selling dozens of its most famous household brands to its online shoppers because of a dispute with its biggest supplier, Unilever.

    Included are Marmite, PG Tips tea, Pot Noodles and Surf washing powder.

    Retail analyst Bryan Roberts from TCC Global is on Wake up to Money.

    "I think it was inevitable that there would be price increases coming down into negotiations between suppliers and retailers," he says. 

    "A lot of suppliers have warned that Brexit and the subsequent impact on sterling would prompt price increases or attempted price increases and a number of retailers have acknowledged that Brexit and the subsequent impact would also lead to price pressure, so this is obviously a very high profile case that's spilled over into the public arena and hopefully will be resolved in the near future, so it's probably doing neither side any favours and certainly not shoppers either," he adds.

  16. Property prices up on rising demandpublished at 06:01 British Summer Time 13 October 2016

    BBC Radio 5 live

    For sale signsImage source, Getty Images

    Figures out this morning show property prices are climbing again 

    The Royal Institution of Chartered Surveyors says demand among home buyers has increased for the first time in seven months - and it says prices will continue to rise ove the next three months. 

    Russell Quirk is the chief executive of online estate agents Emoov and he's on Wake up to Money.  

    "Reports of the demise of the UK property mark have been rather exaggerated," he says.

    However, he points out that while buyers are flocking to snap up properties, sellers are still reluctant, which is why prices are on the up. 

    He reckons property prices will end this year 6% ahead of where they were at the end of 2015 - and he thinks that is sustainable. 

    Homeowners are likely to be happy about the situation, first time buyers less so ...

  17. Good morningpublished at 06:00 British Summer Time 13 October 2016

    Welcome to Thursday's Business Live.

    Topping the business headlines today, the news that products including Marmite, Pot Noodles and Ben and Jerry's ice cream have been disappearing from Tesco Online amid a dispute between the supermarket and supplier Unilever.

    The row developed when Unilever, which faces higher costs after the fall in the value of the pound, attempted to pass them on in higher wholesale prices.

    We'll bring you more on that.

    Then - at 7am - Unilever will release its latest financial results. We'll have a look at those, as well as figures from retailer WH Smith and Sky. 

    So do stay with us for up to the minute news and analysis.