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Tuesday newspaper round-up: Credit crisis, BAE Systems, Whitbread

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Date: Tuesday 18 Mar 2008

LONDON (ShareCast) - Fears that America is facing another bank collapse spread across Wall Street yesterday, despite emergency measures by the Federal Reserve Bank to prevent the US banking system from imploding and a government-backed rescue deal to save Bear Stearns, reports the Times.

Wall Street's leading investment banks have rallied around ailing rival Lehman Brothers after the Federal Reserve Bank of New York urged them to support the institution in order to try and preserve financial stability, reports the Telegraph.

British banks lined up to borrow extra funds from the Bank of England yesterday after the central bank offered £5bn of loans to steady money markets amid panic caused by the crisis at Bear Stearns, reports the Independent.

BAE Systems has secured a $715m (£357m) order from the US government to supply mine-resistant vehicles, reports the FT.

Sources close to leisure group Whitbread have confirmed the company is in talks with the Dubai-based owners of rival Travelodge about a takeover of the budget hotel group, writes the Telegraph.

Northern Rock staff will today be warned that about one-third of the 6,500 workforce faces the axe, as the nationalised bank begins the painful process of paying back the taxpayer and complying with European state aid rules, says the FT.

Tim Bowdler, the chief executive of Johnston Press, said yesterday that he could not guarantee that the publisher of The Scotsman and the Yorkshire Post could keep up with the conditions attached to its overdraft in the event of a sharp downturn in the economy, reports the Times.

HSBC wants to list in China within the next two years to tap into the vast investor potential of the world's most exciting economy, says the Telegraph.

The Association of British Insurers (ABI) has stepped up the pressure on Marks & Spencer by signalling that it could strongly oppose any payoff to Lord Burns, the high street retailer's outgoing chairman, writes the Times.

Energy companies fear the prospect of a takeover of British Energy, fearing it could lead to one company having a monopoly over the best UK sites for new nuclear reactors, writes the FT.

The Government's £25bn nuclear energy plan was in danger of being thrown off course yesterday after British Energy, the owner of all of the UK's nuclear power stations, said it was in takeover talks, adds the Independent.

Gold will continue to set new record highs in coming weeks, experts have predicted, despite suffering a sharp sell off this afternoon, alongside other metals and oil, says the Telegraph.