It’s Marmite

In recent years Marmite has come to mean more than just a thick black paste from an oddly shaped jar with a unique flavour that is spread on toast. Loved by some, loathed by others, it has crept into the everyday lexicon as the go-to expression for love-hate relationships.

With the steady weakening of sterling that we have witnessed since the Brexit referendum, cable has collapsed from 148 on the 22nd June to 122 at the time of writing whilst the GBP/Euro journey has been an equally uncomfortable 130 to 111 over the same period. Whilst this makes UK exporters and the tourist industry particularly happy, importers are having the opposite problem with a negative forex margin slapping them hard and resulting in the inevitable shift in prices and consequent fear of inflation.

So when Unilever are alleged to have told Tesco that their prices are going to rise across the board by 10% it is sufficiently newsworthy to make the headlines of the national newspapers with a sense of outrage being expressed as to how a number of our products are going to become rather more expensive. Now you may be someone who is sympathetic to such views and feel a sense of indignation that prices are rising and the Europeans are trying to “get their own back”; but you may come from the rather more brutal school of thinking which goes something along the lines of, “you voted for it, so now you can suck it up!” It’s Marmite!



About FFA Experts

Clarkson Platou Futures, the pioneer of the forward freight agreement (FFA), is now the leading broker of dry FFAs and iron ore swaps
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