Morning all. Friday's market reports:

Telegraph
The Times
The Times (Need to know)
FT
The Guardian
The Independent
This is Money

Saturday

American consumers are beginning to feel more confident about the state of the economy - despite facing a stagnant housing market, low economic growth and rising unemployment.
US economy: Consumer confidence on the rise

The pound could soon dive to barely more than a dollar and a half while gold prices plunge to $650, experts predicted yesterday amid fresh evidence that the commodity boom is ending and the dollar's resurgence is under way.
Pound and gold down as dollar rises

Sterling fell against the dollar for the eleventh day in a row yesterday, its longest consecutive decline since 1975, as concerns mounted over Britains faltering economy. The pound hit a more than two-year low of $1.8514 a level not seen since July 2006 further extending a seismic shift in currency markets in recent days as interest rate expectations for big economies change.
Sterlings decline against dollar hits run not suffered since 1975

Lehman Brothers, the Wall Street investment bank, is understood to be in talks to sell its entire $40 billion (21.5 billion) real estate portfolio in a move to stem losses incurred during one of the worst property slumps since the Great Depression.
Lehman Brothers in talks over sale of $40bn real estate assets

Wachovia has become the latest US investment bank to buy back auction-rate securities to settle complaints that it misled investors, taking the total industry settlement to more than $40bn (21.5bn).
Wachovia $8.8bn buyback settles investor complaints

Sunday

Inflation could drop to below 1 per cent next year as the slump in oil prices and the weight of the economic downturn drag price rises into negative territory, it has been warned. Tim Congdon, the prominent analyst who set up Lombard Street Research and has advised previous governments, said the Consumer Price Index could come down "very sharply" from its current heights.
Economists warn inflation could fall below 1 per cent

Silly season it may be, but August often brings with it decisive shifts in the financial and economic spheres. Twelve months ago we had the about-turn in the world's credit markets. I suspect that we will look back on last week as decisive too. It was certainly full of surprises - and ones which provide a telling clue about the fate of the economy. Chief among them were what happened to inflation and to the pound. The two are inextricably linked.
The pound's fall suggests markets doubt MPC's wisdom

New York State attorney general Andrew Cuomo wrote to the investment bank on Friday saying he intended to take legal action against the firm despite offers from Merrill to buy back some of the debt from individual and retail investors. Cuomo believes Merrill repeatedly misrepresented the sub-prime contaminated debt as being safer than it really was.
Attorney general Andrew Cuomo set to sue Merrill Lynch

Rob Templeman is a man on a mission. While Debenhams' chief executive might have chosen to spend the summer indulging his passion for jet skis, he has opted for a less salubrious option. The past few months have seen Templeman touring the City pleading with his top shareholders to help him curb the short-selling of Debenhams' shares. That he is focusing his ire on the short-sellers and trying to cut off their trade through the back door is testament to the impact they are having on UK plc.
It's last orders for short-sellers if bosses get their way

Short-sellers have staked more than 325m on Persimmon's stock falling ahead of the housebuilder's half-year results this week. Hedge funds and other investors have borrowed up to 28 per cent of the company's shares, betting that the results will heap further gloom on Britain's property sector.
Persimmon short-sellers stake 325m on falling share price

You would expect M&A to dry up in a downturn but, as Ben Harrington explains, the City is seeing some oft-rumoured deals become reality.
Credit crisis does not stop a rich seam of deals from being mined

Rival bidders, including South African miner Impala Platinum, are exploring ways to challenge Xstrata's takeover bid for 5bn UK-listed Lonmin. Sources say the company has received at least two expressions of interest in addition to Xstrata's bid.
Suitors circle Lonmin to gatecrash Xstrata bid

Malcolm Walker, the founder of the Iceland frozen food chain, has made an audacious bid approach for Woolworths, the struggling pick 'n' mix retailer, in a move that would see him return to the company that fired him 37 years ago. A consortium headed by Walker and known to include Baugur, the Icelandic investor that holds a 10 per cent stake in Woolworths, has made a formal approach to Richard North, the retailer's chairman, about acquiring the chain's 815 stores.
Iceland boss in surprise bid for Woolworths

The dispute is the latest row between western business and Russian billionaires over control of companies in the former Soviet Union. Italian politicians have been lobbying Peter Mandelson, the EU trade commissioner, on Generalis behalf, asking him to intervene in the dispute. A recent Russian court ruling on Ingosstrakh prevented the Generali / Kellner consortium from using its 38% stake to vote at Ingosstrakh meetings.
Battle for 1bn Russian insurer Ingosstrakh

Russia is considering arming its Baltic fleet with nuclear warheads for the first time since the cold war, senior military sources warned last night. Under the Russian plans, nuclear warheads could be supplied to submarines, cruisers and fighter bombers of the Baltic fleet based in Kaliningrad, a Russian enclave between the European Union countries of Poland and Lithuania.
Russias new nuclear challenge to Europe

When Russian tanks poured into South Ossetia, it was the clearest turning point in Russia's relations with the West since the fall of the Berlin Wall: Russia not only managed to destabilise a pro-Western regime but, crucially, demonstrated to its neighbours how defenceless they are against incursions by its armed forces.
Europe's energy source lies in the shadow of Russia's anger

European leaders warned Russia today to withdraw forces rapidly from Georgia or face unspecified "consequences", as Moscow stalled on its pledges to honour a ceasefire and pull back thousands of troops from the Caucasus republic.
Sarkozy threatens 'consequences' as Russia stalls on Georgia pullout

Monday

British Chambers of Commerce predicts that by 2011 the number of people out of work in Britain will be close to 2 million.
Economic slump puts 300,000 jobs on the line

Residential building land, one of the core assets of most housebuilders, plummeted in value by 20pc in the first six months of the year and could fall by up to 50pc before the current slump is over.
Savills: Residential building land value drops 20pc

US private equity house Apollo Management is raising up to 1.1bn to buy badly performing loans from European banks as it attempts to take advantage of the continuing credit crisis. The money-raising forms part of a fund established to acquire pools of non-performing loans at large discounts, with the aim being to repackage the debt and later sell it on at a profit.
Apollo seeks 1.1bn for distressed debt

NEW YORK (Reuters) - The U.S. Treasury is growing increasingly likely to recapitalize Fannie Mae and Freddie Mac in the months ahead on the taxpayer's dime, Barron's reported in its August 18 edition.
U.S. likely to recapitalize Fannie, Freddie: report

With the end of the New York company's fiscal third quarter less than two weeks away, some analysts are girding for a loss of $1.8 billion or more, instead of the modest profit they previously expected.
Analysts see further loss for Lehman

The Olympics have cost about $50bn to stage, but what impact they will have on the Chinese economy is open to doubt.
China faces economic reckoning after Games

Russian mining giant RusAl has brought its corporate governance campaign against Norilsk Nickel to London, urging City institutions to back it in its attempts to replace the miner's board. The battle for Norilsk is being waged by Oleg Deripaska and Vladimir Potanin - two of Russia's richest men - but has been seen by western investors as a sign that the country is still marred by corporate governance risks that outweigh potential returns.
Russian mining row moves to City

NIKKEI 225	AUSTRALIA ASX200	SHANGHAI	HANG SENG

OUTLOOK - UK smaller company results for the two weeks to Aug 29Thomson Financial Europe AM at a glance share guide: Shares, oil mixed

Thomson Financial UK at a glance share guide - weekend

The Monday Press Roundup

*BRADFORD & BINGLEY SAYS NO MATERIAL CHANGE IN CURRENT TRADING, OUTLOOK

London shares outlook - flat, NY closes higher, ahead of BoE minutes Wednesday

Tokyo shares close higher on bargain hunting; softer yen helps exporters

Thomson Financial UK at a glance share guide

BROKERWATCH Kingfisher cut to 'neutral' by HSBC; target cut to 145p

UK smallcap opening -Cape Diamonds resumes trading after acquisition termination

London shares open lower; caution ahead of BoE minutes Wed; BHP Billiton gains

UK smallcap opening - Synchronica down on acquisition, placing news

UK smallcap opening - Central African Gold gains on output increase

UK smallcap opening - Plexus higher on SPD contract win

London shares open weak; gloomy Rightmove survey weighs; BHP Billiton up UPDATE

UK small caps open lower; Cape Diamonds resumes lower after deal termination

STOCKWATCH BHP Billiton ticks up on positive update; brokers cautious

London shares - mid-morning features

BROKERWATCH Wolters Kluwer upped to 'buy' vs 'hold' at Dresdner Kleinwort