Moody's to review US debt rating; gold hits all-time high - today's papers

Ratings agency Moody's has said it may cut the US AAA debt rating, citing the "rising possibility" the US will default on its debt obligations.

The agency warned the likelihood the US would fail to raise its statutory debt limit in time to avert default was "low" but not "de minimis". READ MORE HERE...

Meanwhile, the chairman of the Federal Reserve last night raised the prospect of a new round of money-printing to boost America's flagging recovery, bolstering stock markets but triggering a slide in the dollar.

Delivering his half-yearly "end of term" report to Congress, Ben Bernanke (pictured) signalled that the option of further monetary stimulus might be back on the table, as he warned that the weakness in the economy may prove more "persistent" than official forecasts had predicted. MORE...

Elsewhere, panicky investors drove the price of gold to an all-time high yesterday, amid renewed fears for the future of the European and US economies. MORE...