A row has broken out between Europe, the US, Japan and the International Monetary Fund over the depth...
The Times notes that the report drew immediate condemnation, but the IMF is sticking to its guns, claiming the so-called bounce called for the latter part of next year will hardly take place - if at all.
"The IMF said that America was set for growth of just 0.7 per cent next year, down from the 2.2 per cent forecast only seven weeks ago. Japan was heading for a contraction of 1.3 per cent in 2002, the IMF said, down from the 0.2 per cent expansion pencilled in earlier in the year," The Times says.
The FT says the problem in Japan is, once again, its banks.
Failure to stimulate growth in Japan would not be helpful for the global economy given that the country is still by far the second largest economy in the world.
There are new calls for the government to bail out the banks with more public cash, but the government is sticking to its position of two years ago, when it said enough was enough, that taxpayers would no longer support bad debts taken on by incompetent bank managers.
However, the latest plea for cash comes from the representative of the country's largest business organisation - and is one that cannot be simply waived off.
The FT reports that with a severe contraction of the economy expected by March, deflation is becoming a spectre worse than pumping public money into unreformed banks that do not seem able to undo their habit of relying on governments to bail them out of trouble.
"[The banking regulator] is now examining a specific list of large corporate lenders which it considers to be the most troubled in Japan, based on issues such as ratings, debt burden and share prices," says the FT.
Problems in Japan are matched by statistics from the US, which show unemployment claims jumped to a new 18-year high or more than 3.8 million people.
Worse still is the fact new claims dropped, meaning an increaseing proportion of the claims are coming from longer-term unemployed.
Closer to home, a new draft directive from the EU regarding prospectuses has company advisors in a spin and is drawing flak from politicos who say they will be tabling dozens of amendments.
The FT says the UK politician charged with making sure Westminster gives its stamp of approval says he will call for some 60 amendments.
The London Stock Exchange is upping the ante by insisting on meeting with EU commissioners in Brussels to press its opinion that the directive as is would impose a significant hike in listing costs.
The FT says a letter from smaller company directors claim the directive could cost their companies up to £150,000 more each year in listing costs.
However, the FT says, there seems to be little support for allowing an opt-out clause as Brussels seems keen on developing a single set of rules covering the entire territory.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November