:00:00. > :00:00.Now for the latest financial news with Sally and World Business
:00:00. > :00:18.Brexit breather for sterling - the pound regains some ground
:00:19. > :00:20.after the UK government agrees Parliament should
:00:21. > :00:27.Plus, Marmite wars - Tesco pulls dozens of household
:00:28. > :00:40.brands off its website in a pricing battle with supplier Unilever.
:00:41. > :00:48.Also in the programme: China sees a big fall in exports hitting market
:00:49. > :01:00.We start with the impact of Brexit on financial markets
:01:01. > :01:02.because there has been some relief for the battered pound.
:01:03. > :01:05.It had its biggest jump against the dollar in a month
:01:06. > :01:08.after Prime Minister Theresa May suggested she would give Parliament
:01:09. > :01:10.a say in plans to leave the European Union.
:01:11. > :01:14.That has eased some of the fears of a hard line approach to the talks
:01:15. > :01:18.which could see the UK leave the EU single market.
:01:19. > :01:21.According to calculations by the UK treasury,
:01:22. > :01:24.leaving the EU single market, a so called hard Brexit,
:01:25. > :01:26.could cost it as much as ?66 billion each year,
:01:27. > :01:30.It says Britain's economy, its annual output or GDP,
:01:31. > :01:33.could be up to 9.5% smaller within 15 years if it can't strike
:01:34. > :01:36.a deal giving access to the EU market,
:01:37. > :01:46.and is forced to operate under World Trade Organisation rules.
:01:47. > :01:49.These figures are disputed by Brexit supporters.
:01:50. > :01:52.But what can't be disputed is what's happened to the pound.
:01:53. > :01:55.It has lost 18% of its value since the Brexit vote,
:01:56. > :02:11.The FTSE 100 though has been hitting record levels.
:02:12. > :02:14.That's because many of its companies generate big profits overseas,
:02:15. > :02:18.which are worth more when they're converted to the weaker sterling.
:02:19. > :02:25.But the UK consumer is already feeling the effects.
:02:26. > :02:36.Tesco has withdrawn some of the most popular brands from its website,
:02:37. > :02:38.including Marmite spread, Vienetta ice cream and Persil
:02:39. > :02:41.washing powder - after Unilever tried to put up prices to compensate
:02:42. > :02:54.Our Business Editor Simon Jack reports.
:02:55. > :03:01.Out of stock, Marmite, Ben Jerry's ice cream, Persil, withdrawn from
:03:02. > :03:05.the website as the biggest retailer in the UK would not accept a 10%
:03:06. > :03:09.price increase from Unilever. Retailers and suppliers fall out all
:03:10. > :03:13.the time but industry sources say this is of a different magnitude.
:03:14. > :03:17.The biggest retailer in the country to fall out with its biggest
:03:18. > :03:23.supplier Marks a new front in a perennial prize for some say has
:03:24. > :03:28.escalated because of Brexit. This is Unilever's justification for the
:03:29. > :03:31.higher bill. The value of sterling has fallen 17% since the Brexit
:03:32. > :03:40.which means Dutch company Unilever is seeing a fall in prices, so they
:03:41. > :03:44.are upping the price to compensate. We have seen the pound fall as a
:03:45. > :03:49.result of the Brexit vote and obviously as food products are
:03:50. > :03:53.imported this is putting pressure on suppliers and eventually something
:03:54. > :03:59.will have to give. We eventually may see some of the cost increases
:04:00. > :04:02.coming through to actual prices on supermarket shelves which would be
:04:03. > :04:09.bad for the everyday average British consumer. It was just last week that
:04:10. > :04:13.the boss of Tesco told the BBC that price pressures were building. There
:04:14. > :04:18.are some pressures. Commodity prices, exchange rates will bring
:04:19. > :04:23.pressure to the marketplace and historically that has seen prices
:04:24. > :04:27.rise but I stress the approach at Tesco is to work with suppliers to
:04:28. > :04:31.try to offset those pressures through productivity and other
:04:32. > :04:35.things so that prices don't rise. That working together at is to have
:04:36. > :04:39.stopped working. In a statement Tesco hoped the dispute would be
:04:40. > :04:41.resolved soon but until then shoppers may find some items on
:04:42. > :04:45.their shopping list missing. Jeremy Cook is chief economist
:04:46. > :04:55.at foreign exchange firm World It is nice to see you again, Jeremy.
:04:56. > :05:00.Simon's story illustrates the effect on the real economy of all of this.
:05:01. > :05:04.Absolutely. The next question people are asking is just how much prices
:05:05. > :05:09.will increase as a result of this. The UK... It may have been part of
:05:10. > :05:14.the EU it still is, but it is an island nation, we import a lot of
:05:15. > :05:18.the food we consume, fuel, cars and houses consumed to run and heat, so
:05:19. > :05:21.how much as a result of the devaluation of the pound will we be
:05:22. > :05:26.paying more in the next coming years" and this situation, that is,
:05:27. > :05:32.the pound is sensitive to every bit of news about Brexit will carry on
:05:33. > :05:37.presumably until March 2017. That is when we are supposedly exiting.
:05:38. > :05:41.Yeah, the initial falls have been on the back of the fact that we were
:05:42. > :05:45.not getting... And these were not going to get a vote, MPs are likely
:05:46. > :05:51.to a debate gave it a little boost, but the fact is that unless we can
:05:52. > :05:56.see a clear plan from the UK government about how they expect to
:05:57. > :06:01.attack the negotiations with the EU than all the rumour, speculation and
:06:02. > :06:05.intrigue, any leaks from either the UK government or the EU government
:06:06. > :06:09.are going to send it into a volatile frenzy. It's interesting as well
:06:10. > :06:13.because it's not just about exit but it's also about what's happening
:06:14. > :06:22.elsewhere, so in the US it will be impacted ivy -- by the election, and
:06:23. > :06:25.the effect on the euro, but the difficulty with the dollar will
:06:26. > :06:29.likely remain strong because it is seen as one of the safest havens in
:06:30. > :06:33.the world, isn't it, US Treasuries? Currency markets and political risk
:06:34. > :06:38.are always uneasy bedfellows and as we saw with Brexit this year... The
:06:39. > :06:43.trump that possibility at the presidency, we think it could lead
:06:44. > :06:48.to a fair bout of US dollar strength -- Trump possibility. Everyone looks
:06:49. > :06:51.to the US as a safe haven when things get crazy in markets and
:06:52. > :06:55.there would be nothing more crazy than a Trump residency, so that
:06:56. > :07:00.could keep the sterling dollar below the 20% level once again. In the
:07:01. > :07:05.meantime, prices of things in the UK will be going up, won't they? Yes.
:07:06. > :07:09.Inflation will be a problem. We saw it at the petrol pump, we are seeing
:07:10. > :07:15.it with imported flour, which goes into bread, milk, eggs, the basics
:07:16. > :07:19.you rely on, they will get more expensive. Brexit makes households
:07:20. > :07:24.poorer. So we need to stockpile Marmite. Anything from Unilever. I
:07:25. > :07:26.never thought I would see the day. Jeremy, thank you very much indeed
:07:27. > :07:27.for coming in. Let's turn to Asia now where markets
:07:28. > :07:31.are being hit by news of a slump Riuco Hizon is following this
:07:32. > :07:45.for us in Singapore Now, Rico .org Sally, I still want
:07:46. > :07:51.my Marmite. All the news has been fairly positive. This is a surprise,
:07:52. > :07:59.isn't it? Absolutely. You have Japanese stocks reversing early
:08:00. > :08:04.gains like other Asian stock markets as exporters were hit by a rush into
:08:05. > :08:07.the Japanese yen as the mainland released worse report fuelling
:08:08. > :08:12.worries about the second largest economy. Exports plummeting 10%
:08:13. > :08:19.year-on-year and imports falling around 2% due to an mean it global
:08:20. > :08:27.and domestic demand both exports and imports missing expectations --
:08:28. > :08:31.anaemic. This comes after the Chinese currency weakening towards
:08:32. > :08:34.the end of September. Over the last week it has touched its lowest
:08:35. > :08:38.levels against the dollar in six years, so markets here have been
:08:39. > :08:43.affected from Hong Kong to South Korea to Singapore as China is
:08:44. > :08:47.indeed very crucial to the global economy and its performance
:08:48. > :08:52.affecting trading partners. When you talk to some analysts they are not
:08:53. > :08:57.certain if this week trading figure is a signal for slower economic
:08:58. > :09:02.growth going forward, and others say that despite the poor data is they
:09:03. > :09:07.see confidence improving as the economy stabilises and emperors.
:09:08. > :09:11.Thank you very much indeed, Rico, and in a few minutes we will show
:09:12. > :09:13.you the impact it is having on market - we will show you the
:09:14. > :09:13.numbers. In other news: John Stumpf,
:09:14. > :09:17.the boss of US banking giant Wells Fargo, is to resign
:09:18. > :09:20.immediately in the wake of a scandal The bank is investigating how two
:09:21. > :09:24.million accounts were opened without customers' permission
:09:25. > :09:31.to boost sales figures. Last month Wells Fargo was fined
:09:32. > :09:34.$185 million and accused of "widespread
:09:35. > :09:36.illegal practice" by US regulators. Mr Stumpf will be succeeded
:09:37. > :09:39.by the bank's current president and chief operating
:09:40. > :09:55.officer Timothy Sloan. So, let's look at markets, and as
:09:56. > :09:58.Rico mentioned Chinese news hitting sentiment especially for Hong Kong
:09:59. > :10:04.with shares in hanging high -- Shanghai lower as well. The yen is
:10:05. > :10:10.weakening a bit. Just to mention markets also moved by the Fed
:10:11. > :10:13.minutes released in the US showing the Federal Open Market Committee
:10:14. > :10:17.voted 7-3 to leave interest rates unchanged at the last meeting but
:10:18. > :10:21.could they be going up in December? That's all from me for now. See you