Consumer Giants Keep Raising Prices as Profits Come Under Pressure

Nestlé and Procter & Gamble reported resilient earnings as they brought in more money from selling fewer goods.

Procter & Gamble, the owner of Charmin toilet paper and other

 consumer brands, raised prices by 9 percent in its latest quarter.

Credit...Mario Anzuoni/Reuters


By Isabella Simonetti
Oct. 19, 2022


Nestlé and Procter & Gamble, two of the world’s largest consumer-facing companies, continued to raise prices last quarter, generating higher sales even as shoppers, squeezed by inflation, cut back on the amount of cereal, yogurt, detergent and other goods they bought, the companies reported on Wednesday. Executives also said that the prices would remain high in the coming quarters.

Nestlé, the Swiss conglomerate whose brands include Kit Kat and San Pellegrino water, raised prices by 9.5 percent in the third quarter versus the same period last year, up from a 7.7 percent increase in the previous quarter. The effect of accelerating prices was reflected in a small decline in the volume of goods sold in its latest quarter, the first fall in years.

“The challenging economic environment is a concern for many people and is impacting their purchasing power,” Mark Schneider, Nestlé’s chief executive, said in a statement. The company said that it expected its profit margin for this year to come in at 17 percent, down from 17.4 percent the year before.

“Pricing will need to continue when it comes to the remainder of this year and next year as we’re still in catch-up mode towards repairing and restoring our gross margin,” Mr. Schneider said on a call with analysts. Nestlé also announced on Wednesday that it intended to acquire the Seattle’s Best Coffee brand from Starbucks for an undisclosed price.

Procter & Gamble, the maker of Crest toothpaste and Charmin toilet paper, raised prices by 9 percent in its latest quarter. Sales volumes fell by 3 percent, mostly because of lower sales in Russia. The company’s third-quarter profit was just under $4 billion, about 4 percent lower than in the previous year.

The company, which is based in Cincinnati, said that profit growth for its current fiscal year was likely to be close to flat, held back by $600 million in extra costs it had not expected last quarter resulting from higher commodity and freight costs and the strong dollar.

Procter & Gamble’s chief financial officer, Andre Schulten, told analysts that when it came to the path of future sales, “we continue to believe that the majority of that growth will be price driven with a negative volume component, as you would expect given the inflationary pressure.”

The results from the consumer giants show how rising costs of raw materials, labor and transport increase sticker prices for a variety of products in stores, a factor behind rapid inflation in the United States, Europe and elsewhere. Shoppers have cut back on some purchases, but Nestlé, Procter & Gamble and other consumer giants, like PepsiCo, have recently revealed more robust earnings than many analysts expected, suggesting that many consumers are still able to absorb higher prices.

This creates a challenge for the Federal Reserve and other central banks, which are on a campaign to bring down inflation by cooling their economies via higher interest rates.

Nestlé’s shares fell 1.3 percent in Zurich on Wednesday, while Procter & Gamble’s closed up nearly 1 percent in New York.

Hong Kong shares hit lowest level since 2009

Published

Related Topics

• Financial crisis of 2007-08

IMAGE SOURCE,GETTY IMAGES

Shares in Hong Kong have slumped to the lowest level since the global financial crisis, after a major speech by the city's leader on Wednesday.

The benchmark Hang Seng index fell by more than 3% to its lowest level since May 2009, before regaining some ground.

Investors are also concerned about the threat of a global economic slowdown as central banks around the world raise interest rates to tackle rising prices.

One financial expert told the BBC that the "panic selling is ridiculous".

In his first policy address yesterday, Hong Kong's chief executive John Lee announced measures to boost security and plans to attract more overseas talent to the territory.

However, he did not elaborate on economic targets for the city, which has lost ground to rival Asian financial centres like Singapore.

Hong Kong's economy is currently in a technical recession, after seeing two three-month periods in a row of contraction this year.

Until recently the city had some of the world's toughest coronavirus rules as it followed China's zero Covid policies.

"The Hang Seng has hit a 13-year low and nothing is really helping the fragile sentiment," Dickie Wong, executive director of Kingston Securities said.

"There's also a sense that tax rebates are not enough to draw foreigners back to Hong Kong," he added.

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Traders were also concerned about the Hong Kong government's "unprecedented silence on key economic indicators," Kelvin Tay, regional chief investment officer at UBS Global Wealth Management said.

However, Mr Tay added that investors were mostly concerned about "the economic outlook [of China] and a rise of Covid cases in the middle of the party congress in Beijing".

More than 2,000 delegates have gathered this week in Beijing to elect leaders and debate key policies at the Communist Party congress.

On Sunday, President Xi Jinping is expected to be confirmed for a historic third term as party chief.

Other stock markets in the Asia-Pacific region were also lower on Thursday, with benchmark share indexes in Japan, South Korea and Australia losing ground.

Meanwhile, the Japanese yen weakened to a fresh 32-year low of more than 150 to the US dollar.

That triggered further speculation that Japanese authorities will attempt to prop up the currency for the second time in the space of just a few weeks.

Ancient ‘Superhighway’ Full of Human and Animal Footprints from Different Eras Discovered At a UK Beach (PHOTOS)

Dr Alison Burns and Professor Jamie Woodward from The University of Manchester 

inspecting 8500-year-old animal and human footprints in one of the Mesolithic mud beds at Formby.

(Victoria Gill, BBC/ University of Manchester)

When walking along a tranquil beach leaving behind footprints in the sand, have you ever wondered how many people may have walked the same paths, their tracks washed away by the waves? What if their footprints were preserved beneath the sands of time for thousands of years, only to reveal themselves out of nowhere?

Researchers at the University of Manchester have discovered one such coastal superhighway of some brilliantly-preserved human and animal footprints on Formby beach, Merseyside, UK. Some of them date back to the middle stone ages (15,000 BC to 50 BC), while others are as recent as the medieval era (476 AD 1450 AD).

What’s so unique about these footprints?

Red deer hoofprint in the ancient mud on Formby beach radiocarbon dated to about 8500 years ago.

(Jamie Woodward/ University of Manchester)

These tracks were first discovered in the 1970s, but they only gained importance in the 1990s, when a retired teacher began dating them after "realising that they were of some antiquity. Before then, people didn't think the prints were particularly interesting or old," said Alison Burns, a co-author of the paper.

While footprint tracks have also been discovered in several other places in the world, the Formby footprint beds form one of the world’s largest known concentrations of prehistoric Holocene vertebrate tracks.

Moreover, these tracks go beyond being a simple record at a single site. In fact, they tell us the exciting story of how the ecosystem and landscape have evolved in the area and how humans and animals have co-existed in this intertidal environment for thousands of years.

Evolution of a biodiversity hotspot, etched in sand

A footprint bed from the Mesolithic about 8500 years ago covered in red deer hoofprints

 at Formby beach, UK.

(Jamie Woodward/ University of Manchester)

In total, a dozen "well-preserved" footprint beds — some of which are stacked on top of each other — are being revealed as coastal waters erode their protective layers with the waves. Their ages have been determined via radiocarbon dating.

The oldest beds, towards the south of Formby Point, are from the Mesolithic age from about 8,000 years ago. As the boundaries between the land and sea shifted after the last ice age (between 9,000-6,000 years ago), humans and animals moved inland to resource rich areas like the Merseyside beach. Along with human footprints, the study also found traces of other large mammals like aurochs (an extinct ox species), red deer, roe deer, wild boar and beaver, along with predators like wolf and lynx.

But some changes become apparent as we move towards the newer beds of the early neolithic age. During this time, the area appears to have gone through a profound change socially and ecologically with the introduction of agriculture in the British Isles. This is observed in the form of a striking change reflected in the dominantly appearing human footprints and a fall in mammalian species diversity.

A human footprint in the ancient mud on Formby beach radiocarbon dated to about 8500 years ago.

(Jamie Woodward/ University of Manchester)

This shift in species composition could be attributed to habitat fragmentation and land use changes that might have occurred alongside the development of agricultural societies. There are also wooden tracks pointing to evidence of sea journeys and coming up of more permanent settlements.

All of this points to how a rich biodiversity hotspot over years transformed into more of those modern settlements that we see today.

The conclusion of this study transcends that of archeology and geography, and expands upon how sea level rise that threatens island nations and coastal land masses today can irreversibly alter the world and the vital ecosystems that keep our planet going!

The findings of this study were published in the October issue of the journal Nature Ecology and Evolution and can be accessed here.

INDIA

Hashtag Politics | Congratulatory messages pour in for Kharge: ‘Quintessential organisation man’, ‘proud moment for Kannadigas’

The veteran Congress leader’s opponent in the polls, Shashi Tharoor, wishes him success, says ‘it was a privilege’ to have received over 1,000 votes.

By: Express News Service
New Delhi | Updated: October 20, 2022 10:00:50 am

Thiruvananthapuram MP Shashi Tharoor who sprang a surprise by polling more than 1,000 votes in the elections was among the first people to congratulate Kharge. (Express photo by Prem Nath Pandey)

With Mallikarjun Kharge sweeping the party’s presidential elections, party leaders from Priyanka Gandhi Vadra to former Karnataka Chief Minister Siddaramaiah congratulated the veteran functionary as he became the first non-Gandhi president in more than two decades.

Thiruvananthapuram MP Shashi Tharoor who sprang a surprise by polling more than 1,000 votes in the elections was among the first people to congratulate Kharge. “It is a great honour & a huge responsibility to be President of @INCIndia & I wish @Kharge ji all success in that task. It was a privilege to have received the support of over a thousand colleagues,& to carry the hopes & aspirations of so many well-wishers of Congress across India.”
Must Read |Five challenges before Mallikarjun Kharge: Reimagining Congress to bridging generational divide

Thanking party colleagues, Kharge said, “Thank the Congress election authorities and volunteers for their efforts in conducting these elections to strengthen our party. I also thank Smt Sonia Gandhi and Sri for their selfless service to the party. We will continue to look to them for their guidance.”

Former Congress president Rahul Gandhi who is on his Bharat Jodo Yatra earlier in the day said at Adoni in Kurnool district that his role in the party was for “Kharge to decide” but later corrected himself to say that “whoever gets elected, that gentleman will decide”. At the time, the results were not yet out. Rahul said, “President is the supreme authority in the Congress and everyone reports to him. My role… I am very clear… Congress president will decide what my role is and how I will be deployed.”

Congress general secretary Priyanka Gandhi Vadra tweeted: “Congratulations to Shri @kharge ji on becoming the president of Indian National Congress. I am sure that your on-ground experience of political life will strengthen the ideology of the Indian National Congress.”

She added, “Under your leadership, the Congress will continue to fight for the protection of the Constitution and democracy.”

The party’s general secretary and communications in-charge Jairam Ramesh posted on Twitter, “Shri Mallikarjun Kharge @kharge has completed 50 years in electoral politics. He has distinguished himself as a legislator and Minister in the state and at the Centre. He is a shining symbol of social empowerment inspired by Nehru, Ambedkar, Indira Gandhi and Devaraj Urs.”

Adding that “Kharge’s victory in the Congress presidential election is a triumph for the forces who place ideological commitment over personal glory”, Ramesh said that “Kharge has always avoided flamboyance and has been the quintessential organisation man working in a self-effacing manner to advance the collective interests of the Congress party”.

News agency ANI quoted Congress leader Sachin Pilot as saying that the result was “a win of democracy”. The former Rajasthan deputy chief minister said, “I have faith his experience will benefit the party … 9,000 elected people elected the President, this was never done before by any party. Opposition must be nervous today,” he said.

Karnataka Congress chief DK Shivakumar tweeted: “My heartiest congratulations to the newly elected Congress Party President, Sri @Kharge. With his vast experience as a leader, I am sure he will add value and take the party to newer heights. A proud moment for us Kannadigas as Sri Kharge is quite attached to his grassroots.”

Saying it was a proud moment for all Kannadigas, Siddaramaiah said, “Heartiest congratulations to newly elected @INCIndia President Shri Mallikarjun @kharge. His experience, commitment & insights will drive Congress in the right direction.”

Prime Minister Narendra Modi also extended his wishes to Kharge.

“My best wishes to Shri Mallikarjun Kharge Ji for his new responsibility as President of @INCIndia. May he have a fruitful tenure ahead,” he said in a tweet.
Sivaganga MP Karti P Chidambaram who was a key member of the Tharoor camp, tweeted, “1072” along with a smiley. This underlined how even those on the Thiruvananthapuram MP’s side were not expecting the level of support that he did.

Congratulating Tharoor for getting 1,072 votes, another crucial member of the Tharoor camp, Salman Anees Soz. said: “For those who understand Indian politics, our small team has done the impossible. This is a hugely positive result & I thank our voters.”

While Kharge is considered to be close to the Gandhis and has the backing of the All India Congress Committee (AICC) establishment, Tharoor pitched himself as the candidate of change and “tomorrow”.

From A Union Leader To Congress President: The Journey Of Mallikarjun Kharge

India Today

Mallikarjun Kharge Biography: The Congress party’s 24-year wait to get a non-Gandhi president has come to an end. Sitaram Kesri was the last non- Gandhi President from 1996-1998. And, this congress party’s presidential election was historic as Mapanna Mallikarjun Kharge has now replaced the longest serving party president, Sonia Gandhi. And defeated Congress MP Shashi Tharoor. Watch this to know more.

Fracking: Tory MPs set to defy Liz Truss in loyalty vote

IMAGE SOURCE,PA MEDIA

Image caption,

The government lifted the ban on fracking in England last month

By Nick Eardley and Joshua Nevett

BBC Politics

Three Tory MPs look set to defy the government on fracking, after it declared a vote on banning shale gas extraction a "confidence motion".

Labour wants to use a vote in Parliament to force the introduction of a draft law to ban fracking.

The government has ordered Tory MPs to support its policy, or face expulsion from the parliamentary party.

Ahead of the showdown, three Tory MPs signalled they could not "vote tonight to support fracking".

Former ministers Chris Skidmore, Tracey Crouch, and backbencher Angela Richardson, suggested they would not support the government, meaning they could lose the whip.

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In his tweet, Mr Skidmore said he was "prepared to face the consequences of my decision", and Ms Crouch and Ms Richardson both shared his comments with the word "ditto".

However, no other Tory MPs have signalled they would rebel as the Commons debate progressed.

Earlier, Business Secretary Jacob Rees-Mogg said communities would have a "veto" on fracking in their area, as he attempted to quell the rebellion over fracking.

A number of Conservative MPs oppose fracking, but they have been told they must oppose the Labour motion or face expulsion from the parliamentary party.

Ms Truss's press secretary has said the prime minister would not resign even if the government loses Wednesday's vote.

That is because Labour's motion does not amount to a formal vote of no confidence in the government.

Fracking was halted in 2019 following opposition from environmentalists and local concerns over earth tremors linked to the practice.

But last month, the UK government ended the fracking ban in England as part of its plan to limit rising energy costs.

Now Labour says it wants to give MPs a chance to overturn the decision, which broke a 2019 Tory manifesto promise. It will be voted on at 19:00 BST in Parliament.

Some MPs for the Scottish National Party - which opposes fracking - have told the BBC they will take part in the vote.

If Labour's motion is approved, a bill to ban fracking would be given priority to be debated and voted on in Parliament.

In a message to Tory MPs, deputy chief whip Craig Whittaker said the government "cannot, under any circumstances, let the Labour Party take control of the order paper and put through their own legislation".

He said the party was voting "no" on Labour's motion, enforcing what's known as a three-line whip.

"I know this is difficult for some colleagues, but we simply cannot allow this. Please speak with your whip with any issues," the message from Mr Whittaker reads.

When lifting the ban on fracking last month, the government said the practice would resume only where there was local consent, but did not say how this would be sought.

At Prime Minister's Questions, Liz Truss said the government "will consult on the robust system of local consent" and "give clear advice on seismic limits" before any fracking goes ahead.

Business Secretary Jacob Rees-Mogg set out more details during the debate on Labour's fracking motion.

Mr Rees-Mogg said local communities will have a "veto" on fracking after a consultation on community consent, and that national government would be unable to overrule communities objections, with one option under consideration involving local referendums.

"There's an absolute local consent lock," Mr Rees-Mogg said. "Any process to determine local consent must be run independently and this House will vote on any scheme that we bring forward."

The government hopes the Conservative MPs who oppose fracking will back down.

Meanwhile, Labour believes the government is walking into a trap. They want to make this a big dividing line, and have adverts ready attacking each MP who votes against a fracking ban.

One Conservative MP has told the BBC that many will be very unhappy about voting with the government on this issue.

Last week, some Tory MPs told the BBC they were talking to opposition parties about ways they could block the government's fracking plans.

Shadow climate change secretary Ed Miliband said the motion gave Tory MPs a "simple choice" between banning fracking and allowing the government to "impose" the activity on communities.

The Liberal Democrats have urged Tory MPs to "show some backbone" by voting for a ban.

"Conservative MPs will not be forgiven if they give the go-ahead to fracking our countryside for more expensive gas instead of backing renewables," said the party's climate change spokesperson Wera Hobhouse.

A no-confidence vote is usually tabled by the opposition and if the government loses, the prime minister will be expected to resign or ask the King to dissolve Parliament, triggering a general election.

The Tory whips have described Wednesday's vote as "a confidence motion", but the government has the final say over how to respond to a defeat.

Nevertheless, defeat for the government would have political consequences. For example, Tory MPs who do not vote with the government on this motion have been warned they will no longer remain in the parliamentary party.

This could stir up discontent at a time when Ms Truss is trying to shore up her authority.

NO PASSARAN!

Families of victims of Franco regime welcome new Spanish law







Thu, October 20, 2022 
By Emma Pinedo

MADRID (Reuters) - Flor Baena has spent decades trying to clear the name of her brother Jose Humberto, who was one of the last five people executed under General Francisco Franco's fascist regime just two months before the dictator's death in 1975.

But on Thursday, the leftist government's Democratic Memory law tackling the legacy of the 1939-1975 dictatorship and the three-year civil war that preceded it was published in the official gazette. As of Friday it annuls all convictions for political, ideological, religious beliefs or sexual orientation.

"I want it to be all over the media saying that he was an innocent man who was executed by a firing squad...I want his honour to be restored and for him to go down in history as a murdered person, not as a murderer," she told Reuters.

A military court sentenced 24-year-old Baena, a member of the Revolutionary Anti-Fascist and Patriot Front (FRAP), a leftist underground movement, to death for allegedly killing a police officer. Baena denied involvement in the killing. Testimony said he did not look like the shooter but this was not admitted by the court.

The executions, which also included two members of Basque separatist group ETA, on Sept. 27, 1975, sparked outrage and protests in Spain and abroad.

Having unsuccessfully taken the case to Spanish courts and the European Court of Human Rights, Flor Baena, 69, welcomed the new law, but still lamented that their parents had died with her brother's name still marred by murder.

The sister of Jose Luis Sanchez Bravo, another FRAP member executed on the same day as Baena, remembered the pain her mother endured after his death, which she said deprived her of the will to live.

"If at least my brother's name is cleared, I'm satisfied," Victoria Sanchez Bravo said about the new law that aims to eliminate loopholes and cover a wider range of victims and crimes related to Francoism, 14 years after the first memory law was passed.

But memory associations say it still fails to address key issues, such as having legal rulings on the actual crimes or bringing perpetrators to justice.

"We are not going to have that legal truth as it happened in Argentina, for example," lamented Rosa Garcia of La Comuna association of Franco-era prisoners who, as a medicine student in 1975, was sentenced to two years for "unlawful propaganda and assembly".

In a bid to heal the wounds, left and right-wing parties agreed on a Pacto del Olvido (Pact of Forgetting) in 1977 to avoid confronting a painful past and to ease the transition into democracy. However, Franco's legacy remains a divisive issue in Spain, especially following the rise of the hard-right Vox party in the past few years.

MASS GRAVES

With the new bill, the state will also promote the search and exhumations of victims buried in mass graves, which until now were handled by memory associations. Government estimates point to 114,000 civilians who disappeared, presumably killed by Franco forces during the war and throughout the dictatorship.

Earlier this month, several families received the remains of their loved ones from a mass grave in the eastern city of Paterna, where volunteers have so far discovered a total of 154 such graves, exhuming 1,200 victims.

Up until July, the government has given the green light to 448 exhumation projects, including one in central Valladolid where associations hope to recover 160 victims.

Under the new law, studies of the legacy of Francoism will be part of the compulsory school programme and required for seekers of civil service jobs. Until now, Francoism was included in the school history programme but rarely addressed in detail.

Carles Vallejo, a former trade unionist who fled into exile in 1971 after being convicted of unlawful assembly and propaganda, hopes such teaching will raise awareness in younger generations.

"This could be the antidote to the rise of neo-fascism, post-fascism, or the extreme right in Europe," he said, lamenting that Spain had not provided such education earlier to explain the dangers of Francoism and other dictatorships and how they curtail rights and freedoms.

(Additional reporting by Juan Medina, editing by Andrei Khalip and Angus MacSwan)