LONDON - THE Bank of England said on Wednesday that the British economy was probably already in recession as a global financial crisis takes its toll.

'The economy probably entered recession in the second half of 2008 and output is likely to contract further,' the central bank said in its latest quarterly report.

LONDON - A NUMBER of deals designed to cure the global financial crisis were in danger of unravelling on Wednesday, with losses mounting at banks and economies showing further signs of serious deterioration.

Economies including the euro zone, Britain, China and South Africa reported data supporting the arrival of a global recession.

The International Monetary Fund withheld official backing for a $6 billion bailout plan for Iceland, the Financial Times reported, putting loans to the North Atlantic island nation at threat.

THE Singapore dollar is set to weaken sharply to $1.80 against the greenback within the next year, leading United States investment bank Morgan Stanley has predicted.

On Wednesday night, the exchange rate was about S$1.50 to the US dollar.

Morgan Stanley believes Singapore, like many export-oriented nations, will experience a more than expected weakness in its currency ahead.

INVESTORS stuck with Minibonds linked to bankrupt Lehman Brothers got some disappointing news last night but also some moderately good news.

First, there is still no swap counterparty to replace Lehman - the main hope for investors to get money back - though other proposals are being examined.