Wednesday Papers: Fed downgrades outlook - other news

Financial Times

* The US Federal Reserve yesterday downgraded its view of the economic outlook amid rising fears of a “double-dip” recession; policymakers agreed to begin reinvesting more than $150bn (£95bn) in annual proceeds from maturing mortgage-backed and agency securities into Treasury debt; interest rates were kept at their target range of 0-0.25%.

* BP oil spill lawsuits to be heard in New Orleans.

* British scientists develop simple biological test to diagnose autism.

* The Ipsos Mori survey, an opinion poll that lays bare the two-paced nature of the global recovery, suggests that UK consumers are among the most pessimistic in the world over economic prospects.

* Grain farmers are expecting to rake in high prices for this year’s harvest on the back of strong rises in wheat and barley.

* China’s trade surplus surged in July to its highest level in 18 months.

* Hannover Re, Europe’s third-largest reinsurer, has more than doubled its estimate of its expected losses from the Deepwater Horizon oil rig accident.

* Several large Spanish banks, including Caja Madrid and BBVA, are applying to be members of LCH.Clearnet that launched operations for Spanish government bonds and repos on Monday.

The Daily Telegraph

* The goods-trade gap in UK shrank to £7.4bn from £8bn in May, according to the Office for National Statistics.

* Leeds Building Society deposits hit record £7bn.