Northern Foods said that 480 staff will go at two plants, while its former subsidiary, Express Dairies, is to axe 460 workers. However, the pair said they intended to create 340 new posts. Restructuring among food industry companies announced yesterday is set to claim about 600 jobs. Northern Foods said that 480 staff will go at two plants, while its former subsidiary, Express Dairies, is to axe 460 workers. However, the pair said they intended to create 340 new posts.
Northern Foods said it would close Rawmarsh Foods, based near Rotherham in South Yorkshire, which employs 330 producing chilled dairy desserts such as trifles.

More businesses in both sectors said they intended to raise prices, mainly reflecting higher raw materials costs.. Ian Peters, deputy director general, said: “This is a reflection of the rises in interest rates and the strength of the pound.”The survey showed increases in home orders in both manufacturing and service sectors, and an increase in export orders placed with manufacturers. But Richard Iley, of ABN Amro, said the outlook remained benign: “Sub-target inflation, an appreciating currency and little evidence the economy is continuing to accelerate will prevent the MPC from raising rates aggressively.”The British Chambers of Commerce said its survey for the final quarter of 1999 showed growth in the economy levelling off. David Coleman, an economist at CIBC World Markets, said: “It will be interesting to see at what point a continual undershoot prompts a rethink on monetary policy.”A breakdown of December’s data highlighted the difficulty the Bank faces in controlling potential inflationary pressures at a time when inflation itself is at a historic low. The MPC has raised rates three times in the last five months – in September, November and January – and is expected to do so again at next month’s meeting.The split between falling goods prices and rising service sector inflation has widened.

Goods prices rose 0.3 per cent, the lowest since the series began in 1998, while services inflation was steady at 3.9 per cent.”The MPC will use the persistence of service sector inflation to support further interest rate increases,” said Adam Law, of Barclays Capital. “If inflation is consistently below 2.5 per cent, that’s no better than it being consistently over. This justifies industry’s warnings against further rate rises,” he said. Sir Ken Jackson, head of the engineering trade union AEEU, said the Bank was failing in its duty to pursue a symmetrical target. The main factor was higher mortgage payments following recent rate rises, especially in contrast to massive rate cuts at the end of 1998.The measure targeted by the Bank of England – which excludes mortgage interest payments – came in at 2.2 per cent. This is the ninth successive month it has remained below its 2.5 per cent target. That, combined with a subdued survey from the British Chambers of Commerce, led some to question whether the Bank needed to raise interest rates again.

Price rose by an average of 1.5 per cent during 1999, the lowest rate since 1960. Inflation tumbled to its lowest level for almost four decades last year, according to official figures published yesterday. Price rose by an average of 1.5 per cent during 1999, the lowest rate since 1960.
This was despite a surge in December, which took the financial markets by surprise. Inflation rose from 1.4 per cent in November to 1.8 per cent, its highest since March last year. Inflation tumbled to its lowest level for almost four decades last year, according to official figures published yesterday. Fund managers said the deal’s construction did not therefore appear to be in the best interests of shareholders.They said UK shareholders would be left with shares in a UK holding company, controlled from America.

“[EMI chairman] Eric Nicoli will get eaten alive over there,” one said.The fund managers said they would wait to see EMI executives over the next few weeks before deciding if they would vote in favour of the deal.EMI shares closed 19p higher at 739p yesterday.. One senior fund manager said: “Normally the triggering of options relates to a change of control of the group, not subsidiary assets.” Institutions remain concerned that EMI’s board has sold out on the cheap One said yesterday: “It all looks a bit messy. There is a niggling feeling that the complexity is giving Time Warner the opportunity to underpay.”Institutions are further concerned that possible counter-bidders for EMI will not be able to receive financial disclosures from the recording giant for due diligence purposes because the deal does not involve an offer for all EMI’s shares.It is believed that some companies have approached the Takeover Panel seeking financial information, but have been told they have no such rights. This is despite the fact that control is changing only of subsidiary assets, not EMI Group, the UK quoted company. EMI said the options would be converted into EMI shares because Time Warner will have more executives on the Warner-EMI board.Some of EMI’s major institutional shareholders criticised the arrangement.