In the emerging markets, growth rates are slowing as well. In China, you've seen it go down from about 10% to 7.5%. Brazil, always running around the 6%, 7%, now 1%. India, dropping from the 7%, 8% to 5%. And currencies are weakening as well. That adds to the inflationary pressures and squeezing consumer disposable incomes. Take, for example, the Brazilian real, depreciated 15% against the euro, more against the dollar, between middle 2011 and mid-2012. And I think I could give the same for the Indian rupee and some other things.The developed markets are likely to remain difficult as well with unemployment further increasing and consumer confidence decreasing as austerity measures are starting to bite. At best, we can hope for the status quo to persist but we need to prepare as usual for the worst. In the U.S. for example, retail sales have now fallen for 3 consecutive months, which was last seen in 2008. The situation in Europe is well known to all of us, so no point rehashing it here. Better to confront the realities and to deal with it and that's the position we've always taken. I've spoken before about the scale of youth unemployment in parts of southern Europe and the potential consequences from a lack of social cohesion. But Europe's difficulties are not anymore confined to the south. 2012 growth prospects here in the U.K. for example, have been slashed again, this time from 0.8% to 0.2%. A year ago, just to remind ourselves, the IMF had still forecasted 2.3%. And the numbers that I just saw this morning coming out for the second quarter are actually a negative minus 0.7%. We also see no signs of reduced competition. Price and promotional activities continue to be heavy in some markets, as well as in some categories, despite the rhetoric of some to the contrary. What is actually happening in the markets will continue to be the key driver for our decision-making.
Finally, we expect increased volatility in commodity costs behind structurally underlying changes such as the population growth and the increasingly weather-related events. Take for example crude oil, which traded at around EUR 120 per barrel through March and April, then hit EUR 90 a barrel end of June and now is again EUR 105 and rising. Or in the U.S., the severe drought in large part of the country, already leading to sharp inflated prices for soybean, corn and wheat prices. Yet despite all of this, as the result show we, Unilever, are increasingly able to whether all these storms and deliver the consistent results most of you are getting accustomed to from this company. Although I fully realize that it is hard to move the few remaining glass-is-half-empty case out there in this climate, we'll continue to welcome it.We continue to drive -- be driven by an opportunity mindset, not a scarcity one. The population will grow from 7 billion to 9 billion. In fact, every year, 150 million people are entering the middle classes every year and global income per capita over the next 15 to 20 years is expected to more than double. As the emerging market consumer goods company, our expanding footprint there is increasingly a source of competitive advantage. Our brands and our organizations are getting stronger as well and our strategy is delivered, each time, with more and more discipline. Read the rest of this transcript for free on seekingalpha.com