News And Events

LONDON, Sept 17 (Reuters) - Britain's FTSE 100 index is seen opening 68-70 points higher on Wednesday, according to financial bookmakers, having ended 178.6 points, or 3.4 percent lower at 5,025.6 in the previous session, its lowest close in more than three years. Wall Street and Asian markets rebounded higher overnight on investor relief over the U.S. government's $85 billion bail-out of insurer American International Group. The Federal Reserve held its key benchmark U.S. interest rate steady on Tuesday, opting for the time being to soothe rattled financial markets with central bank lending facilities rather than rate cuts.

GLOBAL OVERVIEW

* Wall St up on AIG rescue talk, futures rise

* Nikkei rises 0.9 pct on relief over AIG

* Dollar jumps vs yen on AIG rescue news

* Oil rebounds over $3 after sell-off on AIG rescue

* Gold up on commods rally, AIG rescue, platinum jumps

U.S. SUMMARY: Shares, dollar gain

*Tuesday's close

STOCKS: Wall Street ended another tumultuous session with a sizable gain Tuesday, partly recovering from its worst sell-off in years after the Federal Reserve said it was keeping interest rates steady. Speculation that troubled insurer American International Group Inc. might come up with a much-needed cash injection made room for many financial stocks to rally.

ASIA SUMMARY: Shares mixed, dollar up

STOCKS: Asian were mostly higher and oil was up $3 a barrel on Wednesday after the Federal Reserve said it would bail out American International Group in a dramatic about-face as victims of the financial crisis kept piling up. However, the stock market rally across the region was still rather tame amid lingering fears about the banking sector. Hong Kong stocks gave up early gains to sink 0.9 percent in late Wednesday morning trade, led by financial stocks amid uncertainties over the impact of the U.S. financial meltdown on the sector.

EUROPE SUMMARY: Shares fall; dollar rises

*Tuesday's close STOCKS:

European shares fell to their lowest close since May 2005 on Tuesday as investors grew more jittery about the fate of American International Group and commodity stocks tracked sharply lower metal and oil prices. Britain's leading share index dropped to a three-year low around midday on Tuesday knocked by more falls in financial stocks a day after Lehman Brothers collapsed and as insurer AIG fought to survive.

FOREX:pound fell more than one percent against the dollar on Tuesday on evidence UK banks were reining in lending and as investors continued to curb risk exposure following the collapse of Lehman Brothers. At 1125 GMT, the pound was down 1.10 percent against the dollar at $1.7795, while ongoing risk aversion trades dragged it to a four-and-a-half year low against the yen at 184.66 yen. The euro was also higher against the pound, up 0.7 percent on the day at 79.78 pence, but still below Monday's high of just above 80.00 pence.

BONDS: British gilts rose on Tuesday as speculation grew that the U.S. Federal Reserve might cut rates. Gilts benefited as the collapse of Lehman Brothers and growing concerns grew about U.S. insurer American International Group sent stocks plunging and sparked a flight into government debt, which is considered a safe-haven investment. By 1608 GMT, yields on 10-year benchmark government bonds were 5 basis points lower at 4.42 percent – having earlier touched a six-month low.

OIL: Oil fell more than 4 percent on Tuesday on rising concern that turmoil in global financial markets will further undermine fuel demand and send investors into safer havens. Reports that U.S. oil infrastructure had escaped major damage from hurricane Ike also weighed on markets, which fell more than $5 on Monday after Lehman Brothers sought bankruptcy protection. Brent crude fell $4.30 to $89.94 a barrel.

METALS: Gold fell nearly 2 percent on Tuesday alongside a sharp drop in oil as the dollar firmed ahead of a decision on interest rates by the U.S. Federal Reserve. Platinum slipped more than 5 percent to its lowest level since the end of 2006 as the escalating credit crisis reinforced fears that global economic slowdown could further hit demand from auto makers. As of 0920 GMT, spot gold fell 1.2 percent to $776.90 an ounce from a session low of $771.55 from Monday's close of $786.20. Earlier it touched a one-week high of $786.95. Spot platinum dropped to $1,099 an ounce, the lowest since December 2006, and was last quoted at $1,099/1,129 an ounce from Monday's $1,164.50.

UK stocks to watch on Wednesday are:

WOOLWORTHS  GROUP
The retailer is due to announce its first half results.

BANK OF IRELAND
The bank is due to issue a trading update.

ALKANE ENERGY
The firm is due to announce its first half results.

ITM POWER
The company is due to hold a shareholders meeting.

MEDICAL MARKETING
The group is due to hold a shareholders meeting.

Wednesday Papers: tips and comment

FT
Lex Column:

* Barclays eyes prizes - the UK bank is responding to the potential buy signal of Lehman employees streaming out of the doors carrying cardboard boxes

* Oil/central banks -- the drop in inflationary pressures gives policymakers around the world a gift. So should central banks be cutting interest rates now?

* Chinese equities -- can a return to cheaper money put a floor under stock market freefall? China is among the first to find out

* Goldman's earnings -- how do you defend a business model? Goldman - one of the two remaining pure-play investment banks - has made its case.

* Ailing AIG -- the company's position looks perilous. Monday's after-market downgrades from the credit rating agencies may prove terminal

* Unhappy birthday for GM -- General Motors' market share has been shrinking since the early 1970s. Survival in its current form looks doubtful

* London v New York -- has the handling of the current crisis affected the relative fortunes of London?

* Thai stocks -- now the government has lifted the state of emergency, is there a case for investors to return?

* Adecco/Michael Page -- even as thousands of bankers head through the receiving doors, the bid for the UK recruiter was doomed to fail.

Mobile internet -- the promise of new technology has an enduring ability to inspire excessive optimism

* WaMu's downgrades -- can the US's largest savings and loan group Washington Mutual continue to operate from the financial equivalent of a roadside shack?

Lombard (p.20):
* HBOS: a prisoner of the markets' Lehman logic -- Barclays: SpongeBob Diamond -- Taking advantage of AIG

Other comment:
* Why Gaddafi is seeking to shrink the Libyan state (p.13)

* Fund Focus on Schroders (p.27)

* Dividend fears upset KCom (p.40)

THE TIMES
Tempus:

* Ashmore no more than a hold -- Buy Genus -- Debenhams a risk best not taken Business Editor:

* Relief at planned AIG bailout may be short lived -- Barclays/Lehman: a steal of a price -- Investment banks fighting back.

 Other Comment:
 *Interview Ashley Tabor, chief executive Global Radio

*Liontrust Asset Managers fall on fading bid hopes

* Talk that Generali is mulling a bid for RSA Insurance intensifies

*Service power a tiddler to watch

DAILY TELEGRAPH
Questor:
*Hold Ashmore -- Buy Debenhams -- Hold Northgate


Comment:
*Fed rate deciion gives the market a rare cause for optimism in the future -- Andy Horby's
problem-solving could start with HBOS board.

Other comment:
*GlaxoSmithKline parallel trading case hinges on what is out of the ordinary

*Debt rumours over private equity-owned caravan park operator

THE INDEPENDENT
Investment Column:
*Buy Genus -- Sell Bekerly Group -- Sell Ashmore

Outlook:
*With HBOS underrenewed attack, forced takeover may be the solution Barclays Cherry picks from the Lehman carcass

THE GUARDIAN
Viewpoint:
*HBOS:not enough water, not enough firefighters.

DAILY MAIL
*Rivals HSBC and Lloyds TSB line up to rescue Halifax.