Unilever & Tesco Kiss and Make Up

Friday, 14th October: Break ups are never easy, but Unilever and Tesco resolved their differences last night to start afresh and move their relationship forward. The heartbreak and realisation of the break up between Tesco and Unilever didn’t have time to set in before the two were reunited. Headlines yesterday were dominated by Tesco announcing they would no longer be taking delivery of Unilever products such as Marmite and Ben & Jerry’s, but last night, the two announced a deal had been struck – with no further such details. Tesco seemed to be triumphant in the deal, leading the FTSE at the close +4.41%.

No escape from the Brexit fall-out as today the Nissan CEO Carlos Ghosn met with Prime Minister Theresa May amid fears over the future investment of the production site in Sunderland. Nissan are due to decide early next year where their new Qashqai sport vehicle is set to be built, and have already warned that production at the UK’s biggest car plant could be affected should the UK subsequently face 10% tariffs on car exports following any adverse impact following Brexit. The Nissan Sunderland plant employs 6,700 people, producing around a third of the UK’s total car manufacturing. The region voted with a majority of 61% to leave the EU.

Despite its best efforts following a slight bounce as the Bank of England’s Mark Carney claimed inflation is set to rise and that the bank is “not indifferent to the level of sterling”, sterling erased these gains as the US market opened and traded lower in afternoon trading, capping off a week the currency will want to forget. Carney continued to say that the bank would tolerate slightly higher inflation than the 2% target, if necessary but it is not the bank’s job to target the value of sterling.

It was a shade of green across UK, European and US indices (at the time of writing). The FTSE 100 and 250 ended +0.51% and +0.58% respectively; the CAC and DAX +1.49% and +1.60% respectively. The Dow Jones and S&P 500 +0.43% and +0.21%. GBP/USD is $1.21 and GBP/EUR €1.11.