News in brief

Pound recovers after general election news

The value of sterling dipped and recovered within an hour on April 18

Sterling bounced back from a temporary dip in value, after Prime Minister Theresa May revealed she plans to hold a snap general election on June 8.

The pound fell 0.4% against the US dollar shortly after 10am this morning (April 18), when May revealed she would make an unscheduled statement on the steps of 10 Downing Street at 11.15am. The government was said to have remained tight-lipped over the reason for the statement.

The pound recovered quickly after the prime minister announced the snap general election. As of 11.13am, sterling was 0.1% stronger than the initial dip.

The prime minister said an election would be the only way to bring “certainty and stability”.

May said: “I have concluded the only way to guarantee certainty and stability for the years ahead is to hold this election and seek your support for the decisions I have to make.”

Challenging markets

Meanwhile, leading food manufacturers have complained that currency factors have hit profits.

2 Sisters Food Group last month blamed currency fluctuations on its 17.8% drop in like-for-like operating profit. 2 Sisters blamed its falling profit margin on the challenging markets in the wake of the Brexit vote.

In February, Snack foods giant Mondelēz International also blamed currency volatility on its £2.9bn fall in revenue last year.

Elsewhere, UK cereal manufacturer Weetabix warned of price rises in January, due to currency fluctuations. The weak value of sterling since the UK’s vote to leave the EU had boosted ingredient prices, because wheat is priced in dollars, it said.


How the industry responded to the snap general election
  • “The debate around Brexit will be centre-stage, and we will be highlighting the key issues facing the sector. In the hospitality industry, we need to continue to attract those with the right skills, and keep trade with our neighbours as free as possible. Brexit also presents an opportunity to encourage the new government towards a more favourable tax regime, especially for beer duty. We will not hesitate to use the election to highlight both the challenges and the opportunities for brewing and pubs.”

Brigid Simmonds, British Beer & Pub Association

Related News

The Unite union called for Weetabix job reassurances

Weetabix jobs reassurance sought by union

The prime minister’s snap general election announcement offers a chance to forge a national food and farming policy, say industry leaders

National debate needed on food and farming policy

Baroness Susan Kramer, Liberal Democrat shadow business secretary

What a Lib Dem victory would mean for food manufacturing

The food and drink sector reacts to Labour leader Jeremy Corbyn's pledges (Flickr/Chatham House)

Food and drink sector reacts to Labour’s manifesto

The Liberal Democrats were right to place the economy at the heart of its manifesto, according to CBI (Flickr/Liberal Democrats)

Manufacturing sector reacts to Lib Dems’ manifesto

Manufacturing representatives react to Theresa May's manifesto (Conservatives)

Food and drink sector reacts to Conservatives’ manifesto

Agri-food must not be a Brexit sacrificial pawn

Agri-food must not be a Brexit sacrificial pawn

The UK public voted for a hung parliament last night

Next government ‘must support food and drink firms’

Michel Barnier said the EU was ready to begin the Brexit talks

Brexit features in general election Twitter reaction

The Queen's Speech provided unanswered questions, EEF said (Flickr/Chatham House)

Queen’s Speech: answers needed to avoid ‘economic chaos’

Tesco will delist manufacturer's products if they raise prices unnecessarily

Tesco will delist suppliers if prices rise unnecessarily

Global food prices could be kept low thanks to record-high stocks

‘Record-high’ food stocks keep prices low: Rabobank

Further volatility in the pound’s value is expected with a hard ‘Brexit’

Hard Brexit could hit UK food and drink importers

Kraft Heinz reported a 1.5% sales drop in its third-quarter trading update

Food giant Kraft Heinz reports 1.5% sales dip

Food and drink exports to the UK fell 8% following currency fluctuations and the Brexit vote

Irish food and drink exports top €11bn despite Brexit

Kerry Group reported 2.2% growth in the nine months to September 30

Kerry Group reports growth despite Brexit fears

Greencore reported a 9.1% rise in like-for-like sales

Greencore confident of mitigating Brexit threats

2 Sisters owner Boparan Holdings reported a 17.8% drop in like-for-like operating profit

2 Sisters owner blames ‘tough’ market for profits fall

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.