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Mandelson 'in Starbucks tirade' Mandelson 'in Starbucks tirade'
(21 minutes later)
A spokesman for Lord Mandelson has played down reports the peer launched a four-letter tirade about the boss of US coffee chain Starbucks.A spokesman for Lord Mandelson has played down reports the peer launched a four-letter tirade about the boss of US coffee chain Starbucks.
Starbucks chairman Howard Schulz said in an interview with US TV that the UK was in an economic "spiral" and consumer confidence was "very poor".Starbucks chairman Howard Schulz said in an interview with US TV that the UK was in an economic "spiral" and consumer confidence was "very poor".
Lord Mandelson denied Mr Schulz's claim in an interview with the TV channel.Lord Mandelson denied Mr Schulz's claim in an interview with the TV channel.
But newspaper reports suggest the business secretary later used abusive language about Mr Schulz.But newspaper reports suggest the business secretary later used abusive language about Mr Schulz.
Speaking at a diplomatic reception in New York, Lord Mandelson is reported by The Daily Telegraph to have said: "Why should I have that guy running down the country? Who the f*** is he? How the hell are they [Starbucks] doing?"Speaking at a diplomatic reception in New York, Lord Mandelson is reported by The Daily Telegraph to have said: "Why should I have that guy running down the country? Who the f*** is he? How the hell are they [Starbucks] doing?"
ClosuresClosures
A spokesman for Lord Mandelson said he "did not stand by the language but did stand by the sentiment" of what the Labour peer is reported to have said. Asked to comment on the story, a spokesman for Lord Mandelson said: "We don't stand by the language. But we do stand by the sentiment."
Starbucks has recently announced the closure of nearly 1,000 unprofitable shops around the world.Starbucks has recently announced the closure of nearly 1,000 unprofitable shops around the world.
Mr Schulz's criticism of the US economy came in an interview with Maria Bartiromo, of US financial channel CNBC, where he was promoting the launch of a new product.Mr Schulz's criticism of the US economy came in an interview with Maria Bartiromo, of US financial channel CNBC, where he was promoting the launch of a new product.
He was quizzed about international business conditions and the economic situation in the UK, telling Ms Bartiromo: "Unemployment, the subprime mortgage crisis specifically in the UK, and I think consumer confidence in the UK is very, very poor."He was quizzed about international business conditions and the economic situation in the UK, telling Ms Bartiromo: "Unemployment, the subprime mortgage crisis specifically in the UK, and I think consumer confidence in the UK is very, very poor."
Lord Mandelson appeared on the same programme an hour later to insist Mr Schulz was wrong about the British economy.Lord Mandelson appeared on the same programme an hour later to insist Mr Schulz was wrong about the British economy.
He said: "The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their overexposure given the state of the market. So please do not project Starbucks onto the UK economy as a whole."He said: "The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their overexposure given the state of the market. So please do not project Starbucks onto the UK economy as a whole."
Lord Mandelson earlier gave a speech at the Council for Foreign Relations about the world economic crisis.Lord Mandelson earlier gave a speech at the Council for Foreign Relations about the world economic crisis.