The Guardian scoops an interview with the Chancellor who tells the paper that Economy at 60-year low

His blunt remarks lay bare the unease in the highest ranks of the cabinet that the downturn is making it all but impossible for Gordon Brown to recover momentum after a series of setbacks.
His language is much starker than the tone adopted by the prime minister, who aims to revive his premiership this autumn by explaining how he will help struggling families through the downturn.

Britain in grip of worst economic crisis for 60 years, admits Alistair Darling reports the Telegraph

In an astonishingly frank interview, Mr Darling admits that voters are "p***** off" with Labour and says the party must recover the "zeal" which won it three successive general elections.
Since taking up the post, Mr Darling is said to have faced a crisis "every week", including the collapse of Northern Rock and the loss of millions of people's personal details from HM revenue & Customs.

There is much coverage from the American presidential race,the Independent says of Obama's acceptance speach that

Maybe it wasn't quite his greatest speech ever. Barack Obama has long since set the bar so high that even he on occasion falls short of the summit. Convention acceptance speeches moreover – even one in a football stadium with a firework show to rival the Beijing Olympics – rarely linger in the memory, such is the gathering flood of the political season. But on Thursday evening, the candidate did what every Democrat craved. He set out what he planned to do, laid into John McCain, and looked like a President.

Impossible not to me moved says the Sun

THE real moment of history, when it came, lasted barely ten seconds. But in those few moments America changed forever.
To the roars and tears of 90,000 Democrat supporters, Senator Barack Obama declared: “With profound gratitude and great humility I accept your nomination for the presidency of the United States."

The Times meanwhile reports from the Republican camp where Sarah Palin ignites race for White House

John McCain sent a surge of energy through his presidential campaign yesterday by choosing a woman with just two years’ experience as Governor of Alaska to be his running-mate.
On his 72nd birthday, the Republican nominee announced his choice as Sarah Palin, a 44-year-old moose-hunting mother of five.
The surprise choice makes the race for the White House even more historically charged, ensuring that for the first time there will be either a black man in the Oval Office or a woman as vice-president.

The Guardian says that

She was a surprise choice, with even senior Republicans confessing on television yesterday that they had never met her or knew much about her. Before becoming governor, she had been mayor of the Alaskan town of Wasilla, with a population of 9,000.At the rally, McCain, who celebrated his 72nd birthday yesterday, lauded her as reformer and Washington outsider. Explaining why he had picked her over established politicians, he said: "I have been looking for a running mate that will shake up Washington."

Most of the papers report from the Hague where

Radovan Karadzic has refused to enter a plea to 11 charges of genocide and war crimes during his second appearance in front of the International Criminal Tribunal for the former Yugoslavia. During a 24-minute hearing, the former Bosnian-Serb leader was told that he will be given the chance to air his claims that Nato and the US are trying to kill him at a special session of the UN's war crimes court on Sept 17.
"I will not plead in line with my standpoint as regards to this court," said Mr Karadzic, refusing to plead guilty or not guilty.

says the Telegraph

The Independent reports that

Britain has failed in its duty to stop the US from committing "shameful acts" in the treatment of suspects detained during the war on terror, one of America's most respected intellectuals warns today.
In an interview with The Independent, Professor Noam Chomsky calls on the Government to use its special relationship with Washington America to secure the closure of Guantanamo Bay.

More snooping news on the front of the Mail which reports that Councils recruit unpaid volunteers to spy on their neighbours

Councils are recruiting 'citizen snoopers' to report litter louts, dog foulers and even people who fail to sort out their rubbish properly.
The 'environment volunteers' will also be responsible for encouraging neighbours to cut down on waste.
The move comes as local authorities dish out £100 fines to householders who leave out too much rubbish or fail to follow recycling rules.

The Times reports that

Kirstie Foster may have been talking on internet before blaze

Kirstie Foster was thought to have been on a social networking site when she was interrupted, possibly by a power cut at 1am, three hours before the blaze. Last night police were at the house hunting for the remains of the girl and her parents.

A Guardian investigation show that

The gun shown here, a Webley, is up for sale in London for £150, one of hundreds of such weapons that are easily and cheaply available on the streets of the UK's big cities, a Guardian investigation can reveal.

The Independent turns to the Olympics for its lead revealing

London's plan to top Beijing

Rather than replicate the spectacular ceremonies that marked the beginning and end of the Beijing Games, organisers are considering hosting a number of parallel events when the Games come to London. "We don't want to try to emulate Beijing," said Ms Jowell. "What we want is new ways of thinking about the opening ceremony.

According to the Telegraph

The NHS drugs rationing body has ordered a review of its funding limit for new drugs after a series of campaigns by patients groups denied access to treatment.The National Institute for health and Clinical Excellence (Nice) has commissioned research to establish whether the threshold at which drugs are determined to be cost effective is set too low.

Some bad weather news on the front of the Express which reports that

MONSOON Britain will be lashed by 10 days of rain in just 24 hours tomorrow as the miserable summer ends with a bang.
Forecasters warned of a “severe weather event”, with thunderstorms and torrential downpours hitting a large swathe of the country.
The UK will pay for today’s heatwave, when temperatures are set to reach 81F (27C) from southern England up to the Midlands. Tropical conditions will strike with a vengeance tomorrow, with storms working their way north across the eastern half of the country from the South to Aberdeenshire.

Bad weather in other parts of the World as the Telegraph reports that

The Tropical Storm Gustav strengthened to hurricane status as New Orleans marked the third anniversary of Hurricane Katrina in a mood of uneasiness.The US National Hurricane Center said in a special bulletin on Friday that Gustav has strengthened to hurricane status, after the storm killed at least 78 people in Haiti, the Dominican Republic and Jamaica.
"Data from an Air Force reconnaissance aircraft indicate that Gustav has again become a hurricane, with maximum winds near 75 miles (120 kilometers) per hour," the Center said.

The Mail reports that Mother dies after family-of-three involved in horror 200ft fall in Lake District

A 38-year-old woman airlifted to hospital has died after falling around 200 feet down a mountainside.The family, including a six-year-old girl and her parents, lost their footing while hiking on Sharp Edge, a slippery moss-covered ledge on Blencathra mountain in the Lake District at around 2.30pm yesterday.
All three were airlifted by Sea King helicopters from RAF Bulmer and RAF Valley to Cumberland Infirmary in Carlisle.

The Mirror finds the ONLY person on earth who has any sympathy for Gary Glitter

Child sex pervert Gary Glitter has a split personality verging on schizophrenia, his last friend claims.
Gordon Buchanan said: "His good side is Gary Glitter, the rocker that everyone knows and millions used to love. The sick side is Paul Gadd. I've never met Paul his alter ego, I've always called him Gary.
"Gary's grappling with the darker side of Paul Gadd. Deep down he is a sick child."
Buchanan, 54, a close friend of Glitter for 20 years, went to meet the pervert rocker when he arrived in Britain over a week ago after being deported from Vietnam.

The Guardian tells us of Boris'secret weapon in war on climate change - the roof garden

An increase in the number of rooftop gardens to soak up rainwater across the capital is among a series of measures suggested by Johnson yesterday, as part of efforts to prepare London for the effects of climate change.
The mayor's adaptation strategy, billed as a world first, aims to address the challenges of flooding, extreme temperatures and drought. It calls for compulsory water metering, greater awareness of flood risks and more tree planting, alongside stronger efforts to resist attempts by local authorities and insurance companies to fell existing urban trees.

According to the Independent

They grew up in the era of free love, smoking cannabis and protesting against the war in Vietnam. Now members of Britain's "baby boom" generation have become hooked on an altogether different rebellion: divorce.
According to figures released by the Office for National Statistics, 13,678 people over the age of 60 got divorced in 2007, an increase of more than 1,000 on the previous year. This goes against the national trend, which saw the overall number of divorces fall for a third year in a row, to its lowest level in 26 years

Finally the Sun reports that

DESPERATE England aces smuggled chocolate bars into their rooms to fill the hole left by coach Fabio Capello’s new super-tough diet.
They also battled agonising hunger pangs with bags of crisps.Hardman Capello, 62, has introduced a regime which forces the national squad to go up to eight hours without food after training sessions.
But sources say his fasting plan — which applies only when they play for England — backfired in the recent drawn friendly with the Czech Republic, causing our boys’ lethargic display.