First Brexit bonus

[ian.birchall]

No more Marmite
Having said that I didn't notice Unilever reducing the price when the £ was storming away.
PR hogwash even though I am a (small) Unilever shareholder.

[Nezza Faz]

No more Marmite
Having said that I didn't notice Unilever reducing the price when the £ was storming away.
PR hogwash even though I am a (small) Unilever shareholder.

Can't remember "the £ storming away" anytime in, at least the last decade. Always been grim trying for favourable exchange rates when going abroad in all this time.
Only good thing about the Marmite ban, it's disgusting :devi:

[DaveO]

No more Marmite
Having said that I didn't notice Unilever reducing the price when the £ was storming away.
PR hogwash even though I am a (small) Unilever shareholder.

You can laugh but if you are a Unilever shareholder you should know they report in Euros. So with the pound tanking to make enough Euros when they sell goods in pounds they have to put their prices up.

Many companies report this way such as Nestle and will do the same.

Another reason Unilever is putting its prices up (not just of Marmite) is their costs have gone up also due to the pound losing value.

Commodities, the things used to make their products are priced in dollars. Cost are up as a result. Distribution costs are also up as fuel costs also rise again as a result of the devaluation.

This is just the start. Other companies will follow suit soon. Many of the large ones took out hedge deals with suppliers guaranteeing prices in the short term post the referendum but these are coming to an end.

When cost go up someone has to pay. Unilever thinks the consumer will and apparently in other markets where it has acted the same way when a currency devalues, they have (in Latin America it put prices up 15.5% after a devaluation). Apparently their brands are strong enough to bare the price rises without affecting sales.

If suppliers don't pass on cost increases jobs will go and/or wages will suffer.

So whichever way the Chocolate Chip Cookie crumbles in that regard, I hope you are happy that you're living standards are about to drop by 15%-20% as a direct result of Brexit because they are.

[Wandering Warrior]

Exactly the same scenario with petrol going up, only dollars instead of euros for crude oil.
I've said before we can't feed ourselves, this is only the tip of the iceberg.
Given the NHS is on the bones of its rse I'd be more concerned about that than"democracy" if I was over a certain age, certainly the Government should be showing more interest.

[ian.birchall]

No more Marmite
Having said that I didn't notice Unilever reducing the price when the £ was storming away.
PR hogwash even though I am a (small) Unilever shareholder.

Can't remember "the £ storming away" anytime in, at least the last decade. Always been grim trying for favourable exchange rates when going abroad in all this time.
Only good thing about the Marmite ban, it's disgusting :devi:

I was comparing the 1.54 dollars to the £ some 12 months ago.I only go on holiday to France and back in 2007 the exchange rate was 1.37euros to the £,in 2010 it had slumped to 1.08euros, in June2016 it had surged to 1.42 euros and now of course we are back at 1.10euros.
The quickest way to lose your money is to bet on exchange rates. George Soros is famous for having made several billion £s in driving the UK out of the ERM in 1992. He lost all that and as much again in 2007.

[ian.birchall]

DaveO,
Nestle's report in CHFr not dollars but irrespective of all the arguments about Credit I would caution that the real danger facing the UK is the enormous balance of trade deficit we have been incurring over the past forever as the country, by which I mean every man woman and child in the country, have been living beyond their means.
Just as another aside Dave every time I type Brexit on this tablet it turns itself into Credit or is that credit.Its done it again. Doesn't it work for you as well?

[DaveO]

DaveO,
Nestle's report in CHFr not dollars but irrespective of all the arguments about Credit I would caution that the real danger facing the UK is the enormous balance of trade deficit we have been incurring over the past forever as the country, by which I mean every man woman and child in the country, have been living beyond their means.
Just as another aside Dave every time I type Brexit on this tablet it turns itself into Credit or is that credit.Its done it again. Doesn't it work for you as well?

Err no probably because I am using a PC and old fashioned keyboard but auto correct can be a pain to override.

As to the rest, I thought Nestle UK reported in Euros.

The balance of trade is a concern and if you look back over history I think you will find it's been in the black rarely and usually with Labour in power.

The trouble with being so much in the red now is of course it makes devaluation an even worse thing.

The value of the £ has dropped 15% so just to stand still we have to sell 15% more goods to the rest of the world. And that isn't happening.

Add to that we import more than we export the net balance of trade deficit in monetary terms gets even bigger due to the devaluation even if exports and imports remain static.

Of course rising prices of imported goods could stop people buying shiny new consumer items from China but they won't be buying British instead as we don't make the alternatives here and even if we did, they would be made from imported parts that have also gone up in price.

[i'm spartacus]

The balance of trade is a concern and if you look back over history I think you will find it's been in the black rarely and usually with Labour in power.

Opposite way round. The longest continuous periods where it was in the black in the last 50 years were under the Heath, Thatcher and Major governments. It fell through the floor during the Blair-Brown years.

[DaveO]

The balance of trade is a concern and if you look back over history I think you will find it's been in the black rarely and usually with Labour in power.

Opposite way round. The longest continuous periods where it was in the black in the last 50 years were under the Heath, Thatcher and Major governments. It fell through the floor during the Blair-Brown years.

Labour ran a BoP surplus in the Callaghan govt preceding Thatcher and again after taking over in 1997.

Also Labour governments since 1956 (the start of the ONS database) have on average had lower annual current budget deficits than Conservative governments.

Source: http://www.primeeconomics.org/articles/ ... pp0w7gnpe

[SJ]

It is a bonus. Why not be happy and rejoice. Marmite no longer on Tesco shelves. That's one good thing to come out of the EU plus more to follow. Can't wait !!