More gloomy economic news on the front of the papers this morning

Cost of crash: $2,800,000,000,000 says the Guardian

Autumn's market mayhem has left the world's financial institutions nursing losses of $2.8tn, the Bank of England said today, as it called for fundamental reform of the global banking system to prevent a repeat of turmoil "arguably" unprecedented since the outbreak of the first world war.
In its half-yearly health check of the City, the Bank said tougher regulation and constraints on lending would be needed as policymakers sought to learn lessons from the mistakes that have led to a systemic crisis unfolding over the past 15 months.

1.2million face negative equity as property slumps says the Telegraph

The continuing decline in house prices means that one in ten mortgage holders - 1.2 million people - are likely find themselves trapped in a home worth less than the loan they took out to pay for it.
Around 500,000 homeowners are already in negative equity following a drop in house prices of almost 15 per cent from last summer's peak, the Bank's figures indicate.

The Times says that Borrowing rises to £60bn as tax revenues collapse

Gordon Brown is preparing to tear up his “golden rule” on debt in order to fund a massive spending spree to counter the looming recession. Some economists predict that the level of government borrowing could reach £110 billion by 2011.
The triple shocks of the financial markets crash, housing slump and rising inflation will cause a drastic reduction in the billions of pounds that the Treasury normally receives in stamp duty, corporation tax and income tax, combined with the need to spend more on benefits.

The Independent leads with its latest opinion poll,under the headline Brown bounces back the paper says

Labour has slashed the Conservatives' opinion poll lead – raising the prospect of a hung parliament after the next election – because of a surge in support for Gordon Brown.
A ComRes poll for The Independent today shows the Tory advantage has slumped from 19 to eight points in just two months. Such a "Brown bounce" connected to the recent economic turmoil would be enough to deprive David Cameron of an overall majority in a general election. Two months ago, the Tory leader was on course for a landslide victory

Meanwhile Corfugate continues to bubble,I think I made a mistake, admits Osborne reports the Guardian

George Osborne attempted yesterday to draw a line under the row over his contacts with a Russian billionaire when he admitted he had made a mistake in discussing a donation from Oleg Deripaska during his summer holiday in Corfu.
In his first one-to-one interview since his former friend Nat Rothschild accused him last week of soliciting a donation from the Russian, the shadow chancellor said he regretted his conduct.
Osborne told Radio 4's The World at One that he had not broken any rules because he had neither asked for nor received any money. But he added: "I think I did make a mistake. I think in politics it is not just what you say or what you do, it is how things look. I must be honest, it didn't look very good. I regret that."

The Telegraph meanwhile reports that

Lord Mandelson has rejected new Tory demands to disclose full details of his meetings with Russian billionaire Oleg Deripaska.The new Business Secretary said that he would not discuss how many times he had met Russia's richest man, whose firms profitted from EU tariff cuts while Lord Mandelson was EU trade commissioner.

The other scandal that is brewing bmakes the front pages of the Mail and the Mirror

Sack them says the former as it reports

The BBC's Director General is under pressure to make a personal public apology over obscene phone calls made by Russell Brand and Jonathan Ross.
None of the corporation's senior management including DG Mark Thompson, head of radio output Tim Davie or Radio 2 controller Lesley Douglas has spoken out despite the BBC receiving more than 1,500 complaints - a record amount.
The corporation said that 1,587 listeners have complained about the broadcast where Brand and Ross leave crude messages on the answerphone of 78-year-old actor Andrew Sachs claiming Brand slept with his granddaughter, model and sometime musician Georgina Baillie, 23.

Ross Dross says the Mirror

Jonathan Ross faced a storm of criticism last night over his crude phone messages to Fawlty Towers star Andrew Sachs.
Ross and comic Russell Brand were forced to apologise after 1,500 people complained about the “prank” calls broadcast on Brand’s Radio 2 show. Gaffe-prone Ross, 47, may now have his controversial £18million contract reviewed by BBC bosses.
Ex-BBC deputy Director General Will Wyatt said: “It was completely inappropriate behaviour. I would like to take some firm action.”

The Express has its happy take on the recession today announcing that

STRUGGLING shoppers received a huge boost last night with figures showing the cost of several popular food items has started to fall.
A basket of a dozen everyday meat and fish products is now cheaper than last month – the first time prices have dropped for a year.
It is a strong signal that food price inflation, which has rocketed over the past 12 months, has finally peaked and that further cuts are on the way.

The Times reports that Exams could be dumbed down unless watchdog steps in

In a highly unusual intervention into the debate about exam standards, Mike Cresswell, director-general of AQA, Britain's biggest exam board, has broken ranks with its rivals.
In an interview with The Times, he has given warning that public confidence in the quality of GCSE and A level qualifications cannot be maintained unless the new exams watchdog, Ofqual, has sufficient muscle to prevent exam boards lowering their standards

Most of the papers report

A plot by far-right extremists to assassinate Barack Obama and kill and decapitate dozens of other black Americans at a school has been broken up, US officials claimed yesterday.
Somewhat farcically, the alleged plotters planned to dress in white tuxedos and top hats and drive their car at high speed towards the presidential candidate while shooting at him. They expected to die in the attempt, the authorities said.

says the Independent

The Guardian adds that

Daniel Cowart, 20, and Paul Schlesselman, 18, were arrested in Tennessee on Wednesday and charged with making threats against a presidential candidate, conspiring to rob a gun store and possessing an unregistered firearm.
They planned a "killing spree" in which they would target a predominantly black high school, killing 88 people and beheading 14 others, before trying to shoot Obama.

Staying in America and the Times reports that

Jennifer Hudson, the 27-year-old Oscar-winning singer and actress, last night positively identified the body of her 7-year-old nephew, bringing a tragic end to a frantic three-day search.
The boy, Julian King, was found in the back of an abandoned SUV on Chicago’s West Side.
It is believed that he was shot by the same gunman who blasted his way into the home of Ms Hudson’s mother, Darnell Donerson, on Friday. The body of Ms Donerson was found in the home immediately after the shooting, along with that of the singer’s brother, Jason Hudson, 29. It was initially hoped that Julian—the son of Ms Hudson’s sister, Julian—had escaped and would be found traumatised but alive.

US admits raiding Syria to kill terrorist leader reports the Independent

Senior US officials claimed last night that the head of a Syrian network responsible for smuggling foreign fighters, weapons and cash into Iraq had been killed in Syria during a raid by US special forces that sparked strong condemnation from Damascus.
The Syrian foreign minister, Walid al-Moualem said the raid had killed eight civilians and was an act of "criminal and terrorist aggression." Speaking at a news conference in London, he warned that Damascus would defend itself against any such future attack

Many of the papers report

More than 20,000 men, women and children have been forced to flee squatter camps and villages after rebels launched a fresh offensive in eastern Democratic Republic of Congo

the Telegraph adds that

Intense fighting erupted early on Monday as the rebel army continued its sweep through government-controlled areas towards Goma, the largest town in Congo's east which hosts most international aid agencies and the UN's peacekeeping mission. Rebels advanced to within 12 miles of the region's main town.

Be a hero for 79p is the front page of the Sun

X FACTOR stars were smashing records last night as their Help for Heroes single became the fastest-selling hit of the year.
And YOU can be a hero too for just 79p by downloading their song Hero in support of our wounded servicemen and women.

The Mail reports on how a tiny premature child was kept alive with a little packaging

He was such a special delivery, and such incredibly fragile goods, that the usual sort of wrapping just wouldn't do.
The little mite swaddled in bubble wrap is Gregor Craig, who was born at just 24 weeks weighing a tiny 1lb 14oz - so small that his father's wedding ring fitted over his arm.
His chances of survival were slim, but doctors wanted to give him every chance

.

The Independent reports that

One of the police marksmen who killed Jean Charles de Menezes on a London Underground train was yesterday accused of embellishing and exaggerating his version of events in order to convince people that he believed he had shot a suicide bomber.
The officer, identified as C12, told an inquest into the Brazilian's death that, upon entering the train carriage, he shouted "armed police", raised his gun, and only opened fire when the 27-year-old ignored his warning.

Many of the papers report on the Credit card with 200% interest rate

Low-income borrowers were warned yesterday against signing up for an Argos payment card which has an interest rate of up to 222.7%.
The Easy Shop card, which the retailer has launched in partnership with sub-prime lender Provident Personal Credit, is aimed at cash-strapped shoppers who want to borrow between £100 and £500 to spend in Argos stores.
The lender's website says applying for the card is "simple and straightforward" with "no complicated forms", and that borrowers can make "affordable, fixed, regular repayments - collected by a local agent

reports the Guardian

According to the Sun

DAVID Beckham has snapped up a luxury Milan apartment a stone’s throw from an infamous red light district.
The England ace — expected to join AC Milan on loan in January — has rented the loft flat in Via Amedeo d’Aosta.
He chose the multi-million pound apartment after getting advice from AC Milan captain Paulo Maldini who lives nearby.

Finally the Times reports that Swans delay migration to stay in warmth of Siberia

It is a winter habitation option that few would hesitate over: the Siberian tundra or the glorious Gloucestershire wetlands.
But flocks of Bewick’s swans appear to have plumped for the former, prompting fears that their great migration might never be seen again.
Concerns have been raised by the Wildfowl & Wetlands Trust centre at Slimbridge where hundreds of the swans would normally have arrived and be settling for the winter months after a summer in Siberia. None has been sighted, leading conservationists to suggest that climate change has made the Arctic so warm that they are happy to stay put.