Nestle has said that it is experiencing supply chain disruption ahead of the Christmas period.

Global bottlenecks and a shortage of HGV drivers have affected business, which will make it more difficult this year to make sure products are on shelves.

Chief executive of Nestle, Mark Schneider, said: “Like other businesses, we are seeing some labour shortages and some transportation issues but it’s our UK team’s top priority to work constructively with retailers to supply them. We are working hard.”

Ahead of the next month’s Cop26 conference, Nestle also said that it would be moving away from dairy products.

“We think less meat and dairy is good for the planet, but it’s also good for diet and health, and it is also a big commercial opportunity,” said Schneider.

“The first unit is always going to be a little more expensive, this is a hump you have to get over, and then at some point economies of scale kick in making them more affordable as we have seen in electric cars.

“Some consumers are willing to pay a premium now for products that pave the way for that,” he added.

UK gas prices soared on Wednesday, hitting record highs.

As a result, factories could be forced to close whilst households are likely to face higher bills.

Vladimir Putin has said that Russia, the largest supplier to Europe of gas, will ease the crisis faced. This caused prices to fall from highs 350p per therm.

Danni Hewson, AJ Bell financial analyst, commented on the rise in gas prices: “News that Russia will boost gas supplies has steadied market nerves a little this afternoon and helped temper those record price hikes but businesses are worried, and investors are too.

“Even at current prices some energy intense sectors will struggle to operate as normal over the winter months and those that can keep operating as normal will have to find a way to push costs through the system.”

“Ultimately it will be the consumer that will have to pay and for some consumers today was as unwelcome as an egg sandwich on a crowded train.”

Tui has reported a surge in late summer holiday bookings.

After a quieter summer due to travel restrictions, the group announced plans to raise 1.1 billion euros to reduce its debt.

TUI’s chief executive, Fritz Joussen, said: “The capital increase will enable us to take a significant step closer to our goal of rapidly repaying the government loans.”

Tui has been bailed out several times by the German government since the start of the pandemic.

Whilst summer holiday bookings are normally around nine million, this year bookings hit around five million. This was driven by late summer holiday bookings primarily by German and Dutch customers.

AJ Bell investment director, Russ Mould, commented: “Travel operator TUI is back to the market with its begging bowl out again. Not for the first time in this crisis the slow return to normality for tourism is causing problems, putting more strain on its balance sheet than an elephant on a tricycle.

“The assumption through the pandemic has been that TUI would never go to the wall, despite a very messy balance sheet, because the German authorities would always step in to bail it out.”

“However, the state-backed loans it received weren’t handouts, they do need to be paid back hence the need to go out and raise more funds through a rights issue.”

US crude oil has hit a seven-year high on Wednesday morning amid rising demand.

Brent Crude is now $83 per barrel, which is a three-year high whilst US crude hit $79.40 a barrel, which is the highest since 2014.

The increase in oil prices is likely to drive up petrol prices. Simon Williams, the RAC’s fuel spokesperson, said:

“[The trend] looks likely to spell further misery for drivers at the pumps as we head towards Christmas … If this were to happen we could see the average price of unleaded hit a new record of around 143p per litre. Diesel would shoot up to 145p, which is only 3p off the record high of 147.93 in April 2021.”

Commenting on the increase of crude oi prices, Naeem Aslam of Think Markets, said: “Oil prices in the United States have climbed to their highest level since 2014, rising for the last 5 sessions. Crude oil has gained support from uncertainty regarding energy supplies as supplies of coal, natural gas, and crude appear to be tighter.”

“Monday’s OPEC meeting only exacerbated the issue as the group conveyed no significant rise in oil production and decided to go on with its already existing timeline to avoid any major repercussions caused by another wave of coronavirus. However, the cartel may be pushed into a corner if demand continues to rise, leaving no option but to ramp up production.”

Tesco profits have doubled in the first half of the years despite supply chain issues.

The store’s profits jumped 107% to £1.1bn as coronavirus related costs fell and sales were up by 3% in the six months to 28 August.

Tesco is expected to reach full-year profits of £2.6bn, which is £700m more than expected and have been boosted by the Euros and more staycations in the UK this summer.

“We’ve had a strong six months; sales and profit have grown ahead of expectations, and we’ve outperformed the market against a backdrop of profound change. Tesco has many unique advantages. The scale and reach of our store estate and online operations are unmatched in the UK,” said the chief executive, Ken Murphy.

Commenting on the results, Walid Koudmani, market analyst at financial brokerage XTB, said: “Tesco announced a share buyback programme after strong H1 performance and increased profit outlook. In addition, the retail giant set out its strategic priorities moving forward as it intends to keep growing its customer base with several competitive offerings and by strengthening its digital platform.”

“Today’s results reassure investors by showing positive performance and a clear plan for the future as the economy contends with potential supply shortages.”

Tesco shares rose 3% on the results this morning.