
Morning all. Market reports:
Telegraph
FT
The Guardian
The Independent
This is Money
The future of American International Group appears to have been guaranteed after high-level talks resulted in the Federal Reserve being on the verge of agreeing to extend an $85bn bridging loan to the troubled insurance giant.
Federal Reserve bails out AIG with $85bn loan
Morgan Stanley confounded critics last night by rushing out publication of forecast-beating third-quarter results designed to fiercely combat suggestions that its independence may be in jeopardy because of continued unrest in the financial sector.
Morgan Stanley unveils forecast-beating results
Concern over the health of US savings bank Washington Mutual heightened after ratings agency Standard & Poor's downgraded its credit rating to junk status. Shares in WaMu, which had already dropped 95pc year-to-date, fell by as much as 25pc, later recovering to trade up 20 cents at $2.20.
Standard & Poor's downgrades Washington Mutual's rating
Barclays early this morning agreed a $1.75bn deal to buy the core business of Lehman Brothers, the investment bank that filed for bankruptcy on Monday amid one of the worst financial crises that Wall Street has suffered.
Barclays agrees $1.75bn deal for core Lehman Brothers business
Central banks around the world yesterday pumped more than 100bn into money markets in a desperate move to avert an inter-bank lending shutdown of potentially dire economic consequences.
Central banks pump 100bn into money markets
Otmar Issing, the former chief economist of the European Central Bank, has warned that confidence in the world's financial system is draining away, leaving authorities facing the gravest challenge in living memory.
ECB doyen Otmar Issing calls crisis "extremely dangerous"
Alistair Darling stopped short of calling for an outright ban on shorting bank shares yesterday, as news emerged that the US government was preparing plans to crack down on the practice.
Darling faces call for short-selling crackdown after HBOS plunge
A second dramatic fall in HBOS's share price in two days piled pressure on the Bank of England to restore confidence in the wholesale markets by fleshing out its plans for the new special liquidity scheme (SLS).
HBOS plight puts pressure on Bank to extend special liquidity scheme
Shareholders were left unable to trade popular commodity securities yesterday, due to fears over the future of their backer, AIG. Banks and brokerages stopped making markets in the Exchange Traded Commodities (ETCs) backed by the troubled insurer and sold by ETF Securities (ETFS). The price of the stocks also plummeted due to the worries over AIG.
AIG fears cause securities trading to halt
The collapse of US investment bank Lehman Brothers has seen the price of oil fall back to $90 a barrel for the first time in seven months.
Lehman Brothers collapse sparks oil price fall
Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20%, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell. The heads of the Russian central bank, the finance ministry and the financial market regulator met Tuesday night for an emergency discussion on ways to halt the crisis.
Russia halts trading as shares plunge