Deal...or no deal? Bush tells politicians to settle bailout differences says the front of the Independent as the financial crisis continues to dominate

President George Bush insisted yesterday that the financial bailout package which may be the world's last hope of averting a further devastating economic downturn will be passed by Congress in spite of continuing deadlock on Capitol Hill.
In another breathless day of brinkmanship and blame-gaming in Washington, exhausted party leaders resumed talks aimed either at resuscitating the White House plan for a $700bn (£380bn) bailout of distressed financial institutions or crafting an alternative approach to preventing a further meltdown.

The Guardian reporting that

Gordon Brown last night threw his weight behind the $700bn bail-out after receiving assurances from George Bush that the plan was big enough to calm the turmoil on Wall Street and will be passed by the US Congress.
The prime minister made his remarks after he emerged from talks with the president at the White House last night. Bush said he told Brown that the plan still being thrashed out by congressional leaders was "big enough to make a difference, and it is going to be passed".

The Times adds that

Brown has called for an end to the “age of irresponsibility” in the financial sector, his most frank acknowledgement so far that the City was allowed to run wild while he was Chancellor.

Meanwhile more problems on this side of the water,both the Teleraph and the Mail lead with the problems for Bradford and Bingley

Is Bradford & Bingley on brink of bail-out? asks the Mail

Bradford & Bingley could be nationalised to save it from collapse.
Ministers are considering a dramatic plan to merge it with Northern Rock to create a publicly-owned ‘superbank’.
Sources stressed that depositors’ cash would be guaranteed by the Government. The desperate rescue scheme emerged at the end of another tumultuous week in the global financial crisis

The Telegraph reports that

Bradford & Bingley can no longer continue as an independent bank and will have to be nationalised in some form in the coming days, City sources have warned.

adding that

Its shares fell six per cent to an all-time low of 20p as it became clear that no rival bank was prepared to mount a rescue bid. Since the start of the year, B&B shares have fallen 90 per cent.

The Sun reports that

TOP British High Street stores — including MFI — were on the brink of collapse last night after being devastated by the mounting credit crisis.
The furniture giant, which employs 10,000 staff, has failed in eleventh hour bids to find a buyer, forge a merger or win extra finance.
Experts predict it could fold next week. But as sales dive across the High Street other well-known names are also struggling to stay afloat.

The Express meanwhile takes another view of the crisis

SALES BONANZA AND SUNSHINE says its front page

At last, news to put a smile on our faces – the country is in for a double dose of sun and shopping cheer this weekend.

Two Tories make the headlines this morning.In the Guardian it leads with the story that

Multiculturalism in the UK has left a "terrible" legacy, creating a vacuum that has been filled by extremists from across the political spectrum, the shadow home secretary, Dominic Grieve, warns today.
In an interview with the Guardian on the eve of the Conservative party conference, Grieve says that "long-term inhabitants" have been left fearful, while second- and third- generation immigrants have felt alienated and unsure what British values stand for. He also warns against downplaying Britain's Christian heritage.

Whilst the Telegraph carries an interview with former Tory frontbencher David Davis who says

The Conservative Party has not yet developed the right economic and tax policy to deal with the impact of the worsening global economic situation.Mr Davis, who has spent the summer considering the economic situation, predicts that recession is now imminent and that radical Conservative policies may now be needed.
"The public at large are not listening to the left versus right, the big versus small state debate,"

The Independent reports that

Conservative Party activists want David Cameron to be bolder on policy and have remarkably low expectations of what a government led by him would achieve, according to a survey carried out for The Independent.
The poll of 1,800 Tory members and supporters by the ConservativeHome website on the eve of the party's conference shows that 64 per cent want to see bold policies to give voters a clear idea of how the Tories would fix Britain. Only 36 per cent support the more cautious approach favoured by Mr Cameron.

The Telegraph reports that Thouands of personal files stolen from RAF base

The drives were being stored in a double-secured area of the Service Personnel and Veterans Agency's offices at Innsworth Station, Gloucestershire.
The agency holds files on all the serving members of the RAF, veterans and their dependents.e_SClBA Ministry of Defence spokesman admitted that data on the entire RAF personnel and their families was at risk.

Former spy chief joins 42-day detention critics reports the Guardian

The government's 42 days counterterrorism legislation came under fresh fire last night when a former director general of MI5 said the provision to hold suspects for six weeks without charge was excessive.
Dame Stella Rimington became the second former MI5 chief in three months to come out against the controversial measures. "It's too much, quite frankly," she said when asked about the 42-day limit during a talk in London about her new spy thriller novel. While she was uncertain what the right limit was, it was clear to her that 42 days was too long.

The Sun is still following Omar Bakri Mohammed's daughter,it reports that

HATE preacher Omar Bakri Mohammed paid for a boob job which launched his daughter’s pole dancing career, it was revealed last night.
He forked out £4,000 in CASH for 27-year-old Yasmin Fostock’s bust-boosting surgery — while living on BENEFITS in the UK.

The paper leads with Air Force One

THE Queen is to spend £7million on her own private jet — the first of her 50-year reign.
Her Majesty, who currently shares the use of VIP flights with Government ministers and military chiefs, has taken a close personal interest in the new jet’s design.
And the Queen is taking such a close interest in the design that she was overheard asking: “Where will the Corgis sit?”

The Mail reports that

Britain's biggest credit card company has been fined a record £50,000 for menacing the public with silent calls.
Bosses at Barclaycard set up a computer system to cold call thousands of customers.
Those picking up the telephone should have been greeted by the voice of a Barclaycard member of staff giving the reason for the call.
However, personnel were often so busy they did not take the call, so those listening were met with a silent line.

The Telegraph reports that

The expected reinforcement of troops into Afghanistan has been ruled out despite American suggestions that the force would be increased, according to senior British military sources

Russia to build missile defence shield reports the Times

In a sharp escalation of military rhetoric, Mr Medvedev ordered a wholesale renovation of Russia’s nuclear deterrence and told military chiefs to draw up plans to reorganise the armed forces by December.
He said that Russia must modernise its nuclear defences within eight years, including the creation of a “system of air and space defence”.

Meanwhile the Guardian tells us that

Somali pirates have captured a Ukrainian cargo ship carrying military hardware, including grenade launchers and 33 Russian-made tanks, in the latest brazen attack in the most dangerous waters in the world.
The MV Faina was hijacked on Thursday off the coast of Somalia, where Islamist insurgents are battling government and Ethiopian troops in some of the heaviest fighting in years.

Finally the Express reports that

The claim by the French to have invented champagne was revealed as nothing but Gallic bluster yesterday.