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Global insurance giant American International Group (AIG) efforts to raise new capital were put in jeopardy after a series of damaging credit downgrades as the drama on Wall Street intensified. AIG, the worlds largest insurance company with a $1,000bn (558bn) balance sheet, faces a $14.5bn cash-call as a result of the cuts.
AIG's credit ratings slashed as Wall Street drama intensifies
The US stock market yesterday suffered one of its worst days since the terrorist attacks of September 2001, as the financial maelstrom that toppled Lehman Brothers threatened the future of AIG, one of the worlds biggest insurers.
Dow dives as Federal Reserve lines up $75bn emergency loan for AIG
Ten of the world's biggest banks have joined forces to create a $70bn (39bn) "liquidity pool" to provide emergency funding in the wake of Lehman Brothers' collapse.
Big banks join forces to create emergency fund
Lloyds TSB and Standard Chartered of the UK are among the banks listed as top-30 unsecured creditors of Lehman Brothers. Lloyds is owed $75.4m (42.1m) by Lehman in the form of a letter of credit. Standard Chartered is owed a $41m bank loan and $36.1m under a letter of credit, according to the stricken investment bank's bankruptcy filing in New York.
Regulators order UK institutions to declare exposure to Lehman Brothers
The Bank of England could be forced to cut interest rates next month to stop the disintegration of the financial sector damaging the fragile wider economy.
Banking turmoil adds to pressure on Mervyn King to cut interest rates
Crude oil fell to a seven month low as traders switched into cash and gold amid growing concerns about the worsening economic climate. In London yesterday morning, Brent crude for October delivery fell as low as 91.16 per barrel, down over $6 on Friday's closing price and the lowest since February.
Crude oil in tailspin after trader switch
Surging fears of Armageddon in the global financial system ravaged a wide selection of commodities across Asia as everyone from hedge funds to individual day traders spent the day in a headlong flight from risk.
Commodities ravaged as traders flee risk
With Wall Street in full-blown crisis and its own stock market in tatters, Chinas central bank has slashed interest rates for the first time in six years in a sign that the Asian powerhouse may be sputtering.
Chinas central bank slashes interest rates as economy sputters
Spanish property group Inmobiliaria Colonial has agreed to a 7bn (5.55bn) debt restructuring, including the sale of assets worth 2bn, in an attempt to keep the troubled company afloat.
Inmobiliaria Colonial agrees to revamp as Spanish property crisis intensifies