Sainsbury’s will pledge £ 500m at lower prices amid the cost of living crisis
A customer buys fruit and vegetables at a Sainsbury’s supermarket in Walthamstow, East London, on 13 February. Photo: Tolga Akmen / AFP / Getty Images
Sainsbury’s has said it will commit £ 500m to keep prices low between March 2021 and March 2023 amid the “huge impact” of the cost of living crisis.
The second largest supermarket chain in the UK said on Monday that the £ 500 million figure includes actions that have already been carried out last year, as well as some that will be introduced for the next year.
Milk, eggs, meat, fish, fruit and vegetables and “key household items” would be the targets to keep prices lower, Sainsbury’s said. The announcement did not reveal the extent to which it expects to raise prices off commodities, with households in Britain (and indeed the world) struggling with the highest price of energy. Inflation in the UK is at a 40-year high of 9%.
Sainsbury’s earned a net profit of £ 677 million during the year to March 2022 and is expected to make another £ 400 million during the current financial year.
Simon Roberts, CEO of Sainsbury’s, said:
The cost of living is having a huge impact on the lives of our customers and colleagues, and we understand that every penny counts right now.
In written comments, Roberts also made it unusually clear that lower prices were aimed at retaining market share, an important consideration for the UK’s largest supermarkets as they try to curb competition from Aldi and Lidl, all two German discount supermarkets. Customers “don’t need to go anywhere else to get low prices,” he said.
The latest draft of the EU sanctions package against Russia suggests that it will follow the extensive details previously reported, with the exemption for pipeline deliveries flying to Hungary and other Eastern European countries.
However, it seems that the leaders of the EU member states will be left to agree on the final details later.
This agreement would mean that Europe would continue to pay Russia for oil, a deeply controversial situation. Not to mention the billions of euros flowing into Russia for its natural gas.
For 25 days – and counting – the #UE has not reached an agreement to ban oil imports from Russia. This #EU summit could represent a difficult debacle to recover.
– Silvia Berzoni (@SilviaBerzoni) May 30, 2022
Reuters reported that the draft announcement, which refers to the collection of EU heads of government known as the European Council, said:
The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia to member states, with a temporary exception for crude oil delivered by pipeline.
The European Council therefore urges the Council to finalize and adopt it without delay, ensuring fair competition and a level playing field in the EU’s single market, and solidarity between Member States in the event of sudden disruptions. of supply.
It may be a pretty smooth gain for the FTSE 100, but it has still taken it to its highest point in a month.
Markets rebounded late last week and have continued their momentum on Monday (although U.S. negotiating tables will probably not be later thanks to a holiday).
Some analysts attribute the optimism of the markets to the prospects of a Chinese economic recovery after a period of severe confinements that have disrupted the market that was once the engine of growth in the world.
Richard Hunter, head of interactive investor markets, an investment platform, said:
Asian markets boosted the positive momentum as China began easing blockade restrictions in both Beijing and Shanghai. The Prime Minister has announced that there will be a series of measures aimed at boosting a besieged economy, with more details coming soon.
However, the damage has been largely in recent months, with an inevitable drop in consumer sentiment linked to a rising unemployment rate, and with many economists predicting a contraction in the current quarter. However, a perceived improvement in the US-China fractional relationship has also improved sentiment, especially given the constraints global economies have had to endure this year.
Countryside is a member of the FTSE 250 index, building houses like the ones in this digital render of a project near Peterborough. Photography: Rural Estates
It’s a pretty smooth start to the day for trading on the London Stock Exchange (and you might expect it to continue when there’s a rare holiday in the US, i.e. Wall Street is closed). But there are some notable moves.
Among the average capitalizations of the housing builder FTSE 250 Countryside is the most prominent: its shares have gained up to 29% after the investor of San Francisco Inclusive Capital Partners (likes to be known as In-Cap) made £ 1.5. bn takeover bid: the second approach of the last two months.
Countryside told In-Cap it would not participate in trading, according to a stock market announcement on Monday, setting the possibility of a higher bid.
In-Cap held 9.2% of Countryside shares on Friday.
Introduction: EU Russian embargo plan boosts oil prices above $ 120 a barrel
Good morning and welcome to our live coverage of the business, economic and financial markets.
Oil prices have reached a two-month high as traders anticipate a late deal to limit Russian oil imports into the EU along with other factors, such as a recovery in demand in China as prices rise. blocking restrictions are reduced.
Brent crude futures prices topped $ 120 a barrel on Monday morning for the first time since late March. The 50-cent gain of the day equates to a 0.4% increase in the North Sea benchmark, while its US counterpart, West Texas Intermediate, also gained 0.7% to reach $ 115. per barrel.
Brent crude oil futures prices rose to a two-month high on Monday as traders anticipated a Russian oil embargo on Europe. Photo: Refinitive
The EU should be able to agree on new sanctions, including Russian oil, on Monday ahead of a summit of leaders in each country, according to its foreign policy chief Josep Borrell.
Borrell told France Info, according to Reuters:
We must decide unanimously. There were tough conversations yesterday afternoon as well as this morning.
I believe that this afternoon we will be able to offer an agreement to the heads of the member states.
It remains to be seen, however, whether the proposed ban will have teeth, at odds with European governments. Hungary, in particular, led by Viktor Orbán, who has long maintained a warm relationship with Russian President Vladimir Putin, has stalled on the embargo in recent weeks, in part because of the country’s dependence on oil. rus.
The EU is working on a compromise plan banning the arrival of Russian oil on tankers but allowing imports of pipelines, which means that Hungary, Slovakia and the Czech Republic could continue to receive oil through the Druzhba pipeline. Soviet era crossing Ukraine.
When asked if plans to include a ban on Russian oil imports could fail in the face of resistance from Hungary and other Eastern European states, Borrell said: “No, I don’t think so. .. in the end there will be an agreement “.
European stock markets have started the week ahead, with the Stoxx 600 index of top European companies gaining 0.7% in opening trades. Germany’s Dax index rose 0.8% and France’s Cac 40 index rose 0.6%.
In the UK, the FTSE 100 gained 0.4% and the FTSE 250 mid-cap 0.9%.
U.S. markets are closed today for Memorial Day celebration.
The agenda
10:00 BST: Eurozone economic sentiment index (May; 105 previous; consensus: 104.9)
13:00 BST: Germany’s annual inflation rate (May; previous: 7.4%; consensus: 7.6%)