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Mandelson 'in Starbucks tirade' Starbucks apologises to Mandelson
(about 2 hours 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. US coffee chain Starbucks has apologised for comments about the UK economy which prompted a four-letter word tirade from Lord Mandelson.
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". The business secretary hit out at comments by Starbucks chairman Howard Schulz said in a TV interview that the UK was in an economic "spiral".
Lord Mandelson denied Mr Schulz's claim in an interview with the TV channel. A Starbucks spokesman said there had been no intention by the company to criticise the UK economy.
But newspaper reports suggest the business secretary later used abusive language about Mr Schulz. The peer welcomed the apology, saying he considered the matter closed.
Speaking at a diplomatic reception in New York, Lord Mandelson is reported by The Daily Telegraph to have launched into angry tirade against Mr Shculz, saying: "Why should I have that guy running down the country?". Lord Mandelson denied Mr Schulz's claim about the economy in an interview with the TV channel. 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 launched into an angry tirade against Mr Shculz, saying: "Why should I have that guy running down the country?".
He then reportedly used a four-letter word to ask who Mr Schulz was, adding: "How the hell are they [Starbucks] doing?"He then reportedly used a four-letter word to ask who Mr Schulz was, adding: "How the hell are they [Starbucks] doing?"
ClosuresClosures
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."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.
I am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed. Lord Mandelson
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. But the Starbucks spokesman insisted there had been no intention to criticise the performance of the British economy.
"It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK," he said.
"The reality of the global economy is that no country is immune to the difficulties. We are all in this together and as a global business we are committed to each and every market we serve.
Lord Mandelson said: "I am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed."