Since the onset of the credit crunch last year, Merrill has suffered after-tax losses of more than $14bn as its balance sheet has been savaged by almost $52bn in writedowns and credit-related losses.

A few of them wear the black kneesocks and tasseled tie belt of the Belzer Hassidic sect, while others are American youths, students from the Mir Yeshiva. Occasionally they are joined by Gerer Hassidim, and of course national-religious Jews, with their crocheted skullcaps. Only after a thorough check of the worshipers' bags, to make sure they contain no prayer books, prayer shawls or phylacteries, do the police allow them to enter the Temple Mount compound.

This unusual "coalition," which has been visiting the mount at least once a week for years, is defined in the ultra-Orthodox world as somewhere between eccentric and untouchable, BUT PRIMARILY AS REBELLING AGAINST A HALAKHIC PROHIBITION STATING THAT TODAY THERE IS THEORETICALLY NO GREATER SIN THAN ENTERING THE TEMPLE MOUNT; that anyone who violates this ruling is doomed to an untimely death.

In recent years the circle of those rebelling against that ruling is growing. Last month Rabbi Moshe Tendler, the son-in-law of the late Rabbi Moshe Feinstein, considered the greatest "decider" (posek) of halakha (Jewish law) among American Jewry in the last generation, visited the Temple Mount accompanied by members of the Temple Mount Institute. Tendler expressed his solidarity with the ultra-Orthodox group, which does not heed the ruling, but rather believes, like many national-religious halakhists, that certain parts of the mount are permissible to Jews today; areas that are not part of the original Temple Mount, and which the Temple did not occupy.

In the ultra-Orthodox world there is absolutely no tolerance for anyone who violates the prohibition against visiting the Temple Mount. Tendler, who openly visited the mount, has been roundly censured. About 20 years ago the Belz Hassidic Elboim family, which founded the Movement for Establishing the Temple faced similar responses, but continues to visit the Temple Mount every week.

Maariv's veteran political reporter Ben Caspit stops short of detailing the precise solution Israel will implement to put an end to Iran's nuclear program, but writes, "PREPARATIONS FOR AN ISRAELI MILITARY OPTION INTENDED TO STOP IRAN'S NUCLEAR PROGRAM ARE UNDERWAY."

The results of the series of highest-level discussions are thus clear: "The debate between those who believe in doing everything, including a military operation, to prevent Iran from getting a nuclear bomb, and those who think we can live with Iranian nukes, has been settled." Not only that, but "if the ayatollahs' regime does not fall in the next year, if the Americans do not strike militarily, and if the international sanctions do not break the Iranian nuclear plan, ISRAEL WILL HAVE TO ACT FORCEFULLY."

The specter of Gustav and the danger it poses to the Gulf Coast grows this weekend as the nation marked the third anniversary of Hurricane Katrina Friday, regarded as one of the most destructive natural disasters in U.S. history. As Expert Senior Meteorologist John Kocet explained, "This storm will be destructive. Where it goes will determine whether it knocks down trees and floods bayous, or whether it destroys communities."

In addition to the potential destruction on land, Gustav will have a major impact on oil and natural gas operations in the Gulf, as well as refining operations along the Gulf Coast. Shell and BP are working toward a full evacuation of assets in the Gulf. ExxonMobil has initiated evacuation of nonessential personnel and is "prepared to evacuate remaining personnel from offshore facilities safely in advance of the storm." Fears of Gustav have caused hikes in global crude prices and wholesale gasoline prices in the Gulf region. Analysts say the storm could send pump prices back over $4 a gallon.

According to Bloomberg News, GULF COAST STATES CONTAIN 56 OPERABLE REFINERIES THAT ACCOUNT FOR ALMOST HALF OF THE U.S. REFINING CAPACITY. There is strong potential that Hanna will move around the bottom of a high pressure area currently over the East, through the Straits of Florida and into the Gulf of Mexico, where it could become another major hurricane later next week.

UPDATE:-THE MAYOR OF NEW ORLEANS HAS ISSUED A MANDATORY EVACUATION ORDER FOR THE ENTIRE CITY, as Hurricane Gustav bears down on the US Gulf Coast. Ray Nagin said residents of the city's West Bank should begin moving out at 0800 (1300 GMT) on Sunday, with the East Bank leaving at midday (1700 GMT).
He called it "the storm of the century" and added: "You need to be scared". Gustav, which is forecast to strengthen to a CATEGORY 5 STORM over the Gulf, powered through western Cuba overnight. "ANYONE WHO'S THINKING OF STAYING - RETHINK IT, GET OUT OF TOWN"

HURRICANE CATEGORIES
•FIVE: Winds over 155mph (249km/h). Storm surge more than 18ft (5.4m) above normal. Only three such US landfall hurricanes - Labour Day 1935, Camille 1969 and Andrew 1992
•FOUR: Winds 131-155mph. Storm surge 13-18ft
•THREE: Winds 111-130mph. Storm surge 9-12ft. Katrina hit New Orleans as a three.
•TWO: Winds 96-110mph. Storm surge 6-8ft
•ONE: Winds 74-95mph. Storm surge 4-5ft

Integrity Bank, with $1.1 billion in assets and $974 million in deposits, was shuttered by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corp. Regions Financial Corp., Alabama's biggest bank, will assume all deposits from Integrity, which was run by Integrity Bancshares Inc. The failed bank's five offices will open on Sept. 2 as branches of Regions, the FDIC said. "Depositors will continue to be insured with Regions Bank so there is no need for customers to change their banking relationship to retain their deposit insurance," the FDIC said.

BANKS ARE BEING CLOSED AT THE FASTEST PACE IN 14 YEARS as financial companies report more than $505 billion in writedowns and credit losses since 2007. California lender IndyMac Bancorp Inc., which had $32 billion in assets, was closed July 11 in the third-largest bank seizure, contributing to a 14 percent drop in the U.S. deposit insurance fund that had $45.2 billion at the end of the second quarter.

Regions will buy about $34.4 million in assets and will pay the FDIC a premium of 1.01 percent to assume the failed bank's deposits, the FDIC said. The FDIC estimates the cost of the Integrity failure to its deposit-insurance fund will be $250 million to $300 million.

The chancellor has been criticised for sending contradictory signals over possible measures to assist homebuyers, particularly the prospect of a temporary suspension of stamp duty on home purchases. He also faced a backlash over the abolition of the 10 pence tax rate. In a wide-ranging interview, Mr Darling said Labour had to rediscover its "zeal" if it wanted to be re-elected for a fourth term. But he admitted that was "a huge problem for us at the moment".

THE CHANCELLOR'S REMARKS COME AFTER A SUMMER OF UNREMITTINGLY BAD ECONOMIC NEWS. House prices are falling at their fastest rate in 18 years, leading to fears of a wave of repossessions. Mortgage lending has slowed dramatically due to the credit crunch while key indicators have suggested that the economy could be poised to go into recession. The economy showed no growth in the second quarter of the year while building firms and retailers have laid off thousands of staff amid fears that the economy will deteriorate further. A member of the Bank of England's Monetary Policy Committee said on Friday that radical action was needed to ensure the crisis did not get worse and warned of a sharp rise in unemployment.

Shadow chancellor George Osborne said: "WHO IS TELLING THE TRUTH AT THE TOP OF GOVERNMENT? The prime minister says the economic situation isn't as bad people think and that Britain is well placed to weather the economic storm but the chancellor says we are at a 60-year low. Gordon Brown has briefed out stories that he has an economic recovery plan all worked out, meanwhile the chancellor says the downturn will be more profound and long-lasting than people thought. It's not clear whether Alistair Darling meant to tell us the truth about the mess 10 years of a Labour government has left our economy in, but he has certainly let the cat out of the bag."

Archbishop Dominique Mamberti, the Vatican's foreign minister, spoke in the wake of attacks against Christians in India that have left at least 13 people dead this week. Mamberti, addressing a conference in northern Italy, said RELIGIOUS FREEDOM WAS A VITAL PART OF INTERNATIONAL RELATIONS AND HUMAN DIGNITY. In order to promote this dignity in an integral way, so-called 'Christianophobia' should be combated as decisively as 'Islamophobia' and anti-Semitism," he said.

This week in eastern India, thousands of people, most of them Christians, have sought shelter in makeshift government camps, driven from their homes by religious violence. Hindu mobs burnt more than a dozen churches and attacked Christians after a Hindu leader was killed. Mamberti said the events in India made the issue of religious liberty today all the more pressing.

The carrier has sought court protection from its creditors, effectively declaring itself insolvent. An administrator will be appointed to handle the process, with flights continuing while the firm plans a radical overhaul of its operations. Losing 2m euros (£1.6m) a day, Alitalia has survived on a 300m-euro state loan. Plans are being drawn up to split the carrier into two and to sell a stake in a new entity to a foreign airline.

Guaranteeing the airline's future will depend on securing fresh investment and persuading its unions to accept large job cuts. Both Air France KLM and Lufthansa have expressed interest in investing in any new entity which emerges from the current business. Alitalia has been crippled in recent years by strategic indecision, poor industrial relations and soaring fuel costs.

Russian President Dmitry Medvedev and the region's leader, Eduard Kokoity, discussed the future of South Ossetia earlier this week in Moscow, South Ossetian parliamentary speaker Znaur Gassiyev said. Russia will absorb South Ossetia "in several years" or earlier, a position was "firmly stated by both leaders," Gassiyev said.

In Moscow, a Kremlin spokeswoman said Friday there was "no official information" on the talks. In Georgia, the vice speaker of parliament, Gigi Tsereteli, said the statement cannot be taken seriously.

"The separatist regimes of Abkhazia and South Ossetia and the Russian authorities are cut off from reality," he said in Tbilisi. "The world has already become different and Russia will not long be able to occupy sovereign Georgian territory."

The Anglo-Canadian airline, which employed 600 people, said yesterday that it would declare itself insolvent, blaming high fuel costs for its losses. The fate of the airline was in jeopardy all day as planes were grounded and creditors attempted to seize assets. A Zoom flight from Glasgow to Halifax and Ottawa was grounded by BAA, the airports operator, yesterday for non-payment of European and British air traffic control fees, stranding 205 passengers.

John and Hugh Boyle said in a statement: "We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff. We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights. The collapse of Zoom is a result of matter beyond our control. Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate.

"The price of oil resulted in our fuel bill jumping by nearly $50 million in one year and we could not recover that from passengers who had already booked their flights."

Reports have begun to circulate in Moscow that Russian oil companies are under orders from the Kremlin to prepare for A SUPPLY CUT TO GERMANY AND POLAND THROUGH THE DRUZHBA (FRIENDSHIP) PIPELINE. It is believed that executives from lead-producer LUKoil have been put on weekend alert. "They have been told to be ready to cut off supplies as soon as Monday," claimed a high-level business source, speaking to The Daily Telegraph. ANY MOVE WOULD BE TIMED TO COINCIDE WITH AN EMERGENCY EU SUMMIT IN BRUSSELS, WHERE POSSIBLE SANCTIONS AGAINST RUSSIA ARE ON THE AGENDA.

Any evidence that the Kremlin is planning to use the oil weapon to intimidate the West could inflame global energy markets. US crude prices jumped to $119 a barrel yesterday on reports of hurricane warnings in the Gulf of Mexico, before falling back slightly. Global supplies remain tight despite the economic downturn engulfing North America, Europe and Japan. A supply cut at this delicate juncture could drive crude prices much higher, possibly to record levels of $150 or even $200 a barrel.

With US and European credit spreads already trading at levels of extreme stress, a fresh oil spike would rock financial markets. THE KREMLIN IS UNDOUBTEDLY AWARE THAT IT EXERCISES EXTRAORDINARY LEVERAGE, IF IT STRIKES RIGHT NOW.

In an address at the party's national convention in Denver, he promised he would do his best to keep alive the American dream of opportunity for all. "America, we are better than these last eight years," he told cheering crowds. "We are a better country than this." MR OBAMA IS THE FIRST AFRICAN-AMERICAN TO BE NOMINATED BY A MAJOR US PARTY.

The presidential election on 4 November will pit Mr Obama against Mr McCain, who will be nominated next week at his party's convention in St Paul, Minnesota. Republican officials say Mr McCain has chosen his running-mate, but the person's identity has not yet been announced.

Moscow's military chiefs revealed their Topol intercontinental stealth rocket had been fired successfully. The chilling declaration was aimed at sparking international alarm about the conflict in the Caucasus, diplomats claimed. Foreign Secretary David Miliband tried to calm the crisis by saying no country wants "all-out war" with Russia. BUT HE ADMITTED THE INVASION OF GEORGIA HAS BROUGHT AN END TO PEACE IN EUROPE.

Russia's Interfax agency said: "The experimental warhead section of the rocket hit its pre-determined target with high accuracy at the firing range." The RS-12M Topol, designed to dodge defence systems, has a range of 6,125 miles — enough to reach Britain — with a 550-kiloton warhead capable of devastating a 14-mile wide area. It was launched from the spaceport at Plesetsk to the Kamchatka Peninsula in Russia's Far East. But Russia's own allies condemned leaders Dmitry Medvedev and Vladimir Putin

The Shanghai Cooperation Organisation slammed the Kremlin for its aggression against neighbouring Georgia. The SCO, made up of China and Black Sea states, said: "Relying on the use of force has no prospects and hinders a settlement of local conflicts. We urge the sides to solve problems peacefully." The EU talked of sanctions unless Moscow backs down.

The prime minister has announced an aid package worth $230m. But aid agencies say many of the victims are being moved to temporary shelters which lack basic amenities and are at risk from disease. Accompanied by the president of the governing Congress Party Sonia Gandhi, the prime minister flew over the flood-affected area by helicopter to get a first-hand view of the devastation.

At least two million people have had to move out of their homes after the government ordered them to evacuate because of the rising waters. The floods have washed away roads and railway tracks, and water and electricity supplies have been affected in many areas. A report released by Unicef says there are fears of infectious diseases as hundreds of thousands of homeless crowd into relief camps.

Politicians have hit out after the move to IMPOSE HARDLINE ISLAMIC RULES ON NON-MUSLIM COLLEAGUES THROUGHOUT SEPTEMBER. The bombshell has been dropped by Labour chiefs of the notoriously loony Tower Hamlets Council in east London. The storm was sparked by an email sent to all councillors this week highlighting arrangements for Town Hall committee meetings next month, which marks the Muslim fasting period of Ramadan.

The memo said that new council leader Lutfur Rahman and his deputy, Siraj Islam, had requested that meetings be kept to a minimum to accommodate fasting councillors. They have also urged all other councillors to resist eating until the breaking of the fast at sunset. Cllr Stephanie Eaton, leader of the Lib Dem group on the left-wing East End authority, said she would be ignoring the new Ramadan regime.

Ramadan is the ninth month of the Islamic Lunar calendar and the holiest of the four holy months. It begins with the sighting of the new moon after which all physically mature and healthy Muslims are obliged to abstain from all food, drink, gum chewing, any kind of tobacco use, and any kind of sexual contact between dawn and sunset.