The rising cost of food and fuel drove the price of goods leaving Britain's factory gates to a 16-year high in November, raising doubts about a further easing of monetary policy over the coming year, The Independent reports.
New figures from the Office for National Statistics, published yesterday, revealed that the annual output price inflation for all manufactured products touched 4.5 per cent, above forecasts of 4.3%, and second only to the August 1991 record of 5.2%. Month on month, factory gate prices were up 0.5%, as the cost of raw materials rose 3.4% – mainly accounted for by the sharp rise in the oil price.
The report prompted some economists to reconsider their optimism over further cuts in 2008.
DRESDNER KLEINWORT, THE German investment bank, is set to make more than 200 staff redundant in the wake of the meltdown in the global credit markets, according to The Telegraph.
The first job cuts were made yesterday in the largely London-based credit business. Up to 60 members of the credit team are expected to be laid off - days before they were to receive news of their annual bonus.
Dresdner Kleinwort, owned by German insurance giant Allianz, is expected to make at least a further 150 people - including traders - redundant from other departments in the weeks ahead.
GLOBAL MINING GROUP Rio Tinto will ask the Takeover Panel to set a deadline for BHP Billiton to make a firm offer for the company - "to put up or shut up" - as speculation mounts that a third party may launch a rival takeover bid, The Guardian reports.
Rio has rejected an informal three-for-one share proposal from rival miner BHP, made at the beginning of November.
Since then, Marius Kloppers, BHP chief executive, has been talking to Rio and BHP shareholders, stressing the synergies that could be achieved if the two groups got together.
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