The business secretary, Peter Mandelson, has launched an extraordinary tirade against the head of the Starbucks coffee empire, accusing him of spreading gloom and overly denigrating the state of the British economy…Earlier, angered at remarks by Starbucks chairman, Howard Schultz – who said the UK was in an economic “spiral” with “very, very poor” consumer confidence – Mandelson had accused him of spreading unnecessary misery and speaking out of turn.
At a diplomatic cocktail reception in New York, he said: “Why should I have this guy running down the country? Who the fuck is he? How the hell are they [Starbucks] doing?” Mandelson’s remarks, made in front of journalists at the official residence of the British consul-general, came amid mounting concern in diplomatic and ministerial circles over hardening US opinion towards Britain’s economic woes.
British officials have been trying to persuade US economists and commentators that alarm over the country’s recession is becoming exaggerated.
Earlier in the day, Schultz singled out Britain as a source of anxiety for Starbucks – which has stores in 49 countries – during an interview with the CNBC television channel. “The place that concerns us the most is western Europe, and specifically the UK,” he said. “The UK is in a spiral.”
“British officials have been trying to persuade US economists and commentators that alarm over the country’s recession is becoming exaggerated.”
It’s not exaggerated and in fact it’s even worse than what Schultz says it is. Mainland Europe is in an even more dire situation, as we’ve discovered the past few days.
For the past two years we’ve read endless stories about stupid US bankers making stupid loans to stupid Americans. But what’s come to light over the past few days is UK and European bankers are far more leveraged to non-performing loans than US banks. UK and Europe banks are responsible for these debacles: Ireland, Iceland, Spain, the Netherlands, all of Eastern Europe, Central and South America, Dubai and Moscow. These bubbles make the California real estate bubble seem tiny in comparison. The fallout is the stuff of wars, and I hope we get our troops out of Europe before the bullets start flying.
The British economy is in great shape, and the earth is 6000 years old.
Nothing to see here. Move along. You should just nip off to the pub for a pint.
Does “Kill the messenger” come to mind?
The problem for Starbucks in the UK is that their coffee and presentation is not as good as the other coffee chains such as Costa Coffee and Cafe Nero.
I’m not sure about the state of the UK economy compared to others but I read somewhere or other that the US has the largest %age of sub-prime mortgages compared to UK etc. by a large margin.
Starbucks has plenty of competition in the coffee quality stakes in the UK. I’d imagine they have alot less in the US.
You can get a pint for less than a coffee in some places as well, so I know what I’d rather be drinking during an economic downturn.
Mandelson’s credibility is pretty much zero here in the UK. We’re talking about a guy who was forced to resign from senior government posts TWICE, only to return for a third time.
He resigned in 1998 after it was discovered that he’d borrowed £370,000 (interest free) from another politician who was under investigation by Madelson’s own department.
He was forced to resign again in 2001 when he admitted trying to ‘ease through’ the citizenship application of an Indian businessman who was offering to fund the ‘Faith Zone’ in the Millenium Dome.
It’s sad but true that I’d credit the Chairman of Starbucks with a bucketload more financial acumen than Peter Mandelson.
Nobody likes starbucks anymore!it’s shite!
#7 Is right though, I mean he’s generally referred to over here as Mandy…Not much credibility left at all.
If this dude is worried about what one ceo from a company not even based in his country says, he has bigger problems to fry then an economy.
Starbucks is a canary in a coal mine.
@QB
Actually, Starbucks is a dead parrot in a pet store. *rim-shot*
Improbus, or Red Leicester in a cheese shop?
Or Tilsit ?
Or Caerphilly ?
Or Bel Paese ?
Or Red Windsor ?
Or Stilton ?
Or Emmental ?
Or Gruyère ?
Or Norwegian Jarlsberger ?
Or Liptauer ?
Or Lancashire ?
Or White Stilton ?
Or Danish Blue ?
Or Double Gloucester ?
Or Cheshire ?
Or Dorset Blue Vinney….
Maybe Howard Schulz knows something “Mandy” doesn’t.
It’s not dead. It’s just resting.
It’s pining for the fjords.