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This is Money
The spectre of 1930s-style deflation in the British economy loomed yesterday after figures showed that prices of many goods slumped last month as recession tightened its grip.
Deflation is the new bogey word as crunch sends prices tumbling
The Office for National Statistics said that consumer price inflation (CPI) dropped to a lower than expected 4.5% in October from 5.2% in September - the first fall since August 2007 and the biggest since April 1992. Inflation peaked at a 16-year high of 5.2% in September due to spiralling energy costs, which have now fallen sharply.
Sharpest fall in 16 years clears the way for another cut in interest rates next month
The Treasury has warned rebellious shareholders in Britain's troubled banks that a public bail-out will be far more costly if they follow through with threats to block any of the lenders' current planned fundraisings.
Treasury warns bank shareholders against rejecting current deals
A record fall in American producer prices last month has led Wall Street to price-in a half-percentage-point cut in interest rates, to 0.5 per cent, when the US Federal Reserve meets on December 16.
Wall Street looks to interest rates of 0.5%
US regulators are moving to approve centralised clearing houses for credit derivatives in a matter of weeks as the debate about the oversight of the vast unregulated sector gathers pace.
Central CDS clearing houses set for approval
China has finally overtaken Japan as the largest foreign holder of US government debt. The latest monthly Treasury International Capital data showed that Chinas holdings of Treasury bills, notes and bonds rose to $585bn in September from $541.4bn in August.
China overtakes Japan on US debt
Radical steps to address the crisis in the shipping industry triggered by a collapse in dry bulk freight rates will be proposed at emergency talks in London on Wednesday.
Meeting to consider action on dry bulk rates