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Santander to rescue B&B as US bail-out deal nears completion Spanish banking giant Santander is in talks with the Government about the rescue of troubled mortgage lender Bradford & Bingley. Chancellor Alistair Darling is anxious to avoid another Northern Rock-style  nationalisation, and Santander is said to be B&B's last chance of a private takeover. Meanwhile, US president George W Bush said there was "widespread agreement" on the plan for a $700bn state bail-out of American banks, with the terms of the deal to be announced later on Sunday. (Sunday Times) Welcome to Wall Street's cash machine In pictures: the week that shook the world Paul Newman dies at age 83 Oscar-winning actor Paul Newman has died at the age of 83 after a long struggle with cancer. The star, famous for his piercing blue eyes and quintessential movie-star looks, died at his farmhouse in Westport, Conneticut surrounded by family and friends. Married to actress Joanne Woodward for 50 years, Newman was known as a philanthropist, political activist and racing driver as well as for performances in classic films such as Butch Cassidy and the Sundance Kid and Cool Hand Luke. (Observer) People: Hollywood hero Newman dies Fire-bombers arrested after attack A group of Islamic extremists have been arrested as they fire-bombed the London home of a Dutch publisher. The three men pushed a petrol bomb through a letterbox, unaware they were being watched by undercover police. Martin Rynja, who was not injured, is thought to have been targeted because his firm, Gibson Square, is preparing to publish a romantic novel about Aisha, child bride of Mohammed. The Jewel of Medina by Shery Jones, was withdrawn from publication in the US last month. (Sunday Times) Tories to unveil plans for economy The Conservatives are to unveil plans to protect the UK economy at their party conference this week as a new opinion poll shows that voters are more inclined to trust Gordon Brown and Alistair Darling to take Britain through tough economic times than their Conservative counterparts. The Tory proposals include the creation of a new independent panel to hold chancellors to account over public debt. Meanwhile, the new BPIX poll shows that the Conservative lead has halved to 12 percentage points. (Sunday Telegraph) The Mole: economic cloud has a silver lining for Brown Chinese space walk success Astronaut Zhai Zhigang has completed China's first ever space walk. He floated in space for 13 minutes wearing a £2.4m Chinese-made spacesuit and waving the Chinese flag. He sent his greetings to "all the people of the nation and all the people of the world" and was personally congratulated by China's premier, Hu Jintao, who said: "The motherland and the people thank you." Chinese commentators have made much of the contrast between the achievement and the US's current economic turmoil. (Sunday Telegraph) In pictures: China in space The Conservative party has collected more than £6m for party funds via a loophole in the funding rules that allows the backers to keep their identities secret. The donations come from "Unincorporated Associations", but there is nothing to stop a major donor contributing through them. (Independent on Sunday) The Taliban have been involved in secret peace talks in London, despite official statements that Britain will only negotiate with the Afghan group once it has renounced violence. The talks involve a senior former member of the hardline group, and are sponsored by Saudi Arabia. (Observer) French fury over Taliban photos David Cameron (left) is to announce a proposal to build as many as 5,000 new private schools funded by the taxpayer. The independently-run schools would be self-governing and would even be allowed to abandon UK exams in favour of the International Baccalaureate. (Sunday Times) £57bn later and we still don't know how PFI's work Civil liberties campaigners and members of the home affairs committee are deeply concerned after it emerged that Keith Vaz sought the opinion of Gordon Brown while chairing the committee as it compiled a supposedly-independent report into the detention of terror supects for 28 days. (Observer) The doctor at the centre of the MMR autism row, currently being investigated by the GMC for alleged dishonesty in claiming vaccination could cause autism, is relaunching his career in the US with the help of celebrities including actor Jim Carrey, whose son is autistic. (Sunday Times) MMR: parents deserve and answer The MCC (Marylebone Cricket Club) is under fire because ten years after its members reluctantly agreed to allow women in, only 62 of 18,000 are female. However, former England cricket captain Rachael Hayhoe-Flint said fast-tracking women was not the answer and would be "divisive". (Independent on Sunday) Peregrine Worsthorne: why I despise the trainer and the tie Zimbabwe's opposition leader, Morgan Tsvangirai, has said a deadlock over assigning cabinet positions in a power-sharing government with president Robert Mugabe could be overcome in the next few days. Tsvangirai said there were no "insurmountable" problems. (Independent on Sunday) Zimbabwe Today: All the latest from our man in Harare The first of three televised debates between the rival candidates for the US presidency took place Friday night with no clear winner. There were no major gaffes, and no moments which might swing the campaign, but Democrat Barack Obama (left) demonstrated his strength on national security. (Observer) McCain blinks in first presidential debate US Election: the latest news, gossip and analysis Damascus has been hit by the deadliest car bomb it has experienced in decades, with 17 dead and at least 14 wounded. Syrian officials said there was no doubt it was a terrorist attack. All of the dead were civilian passers-by on a busy road leading to Damascus airport. (Sunday Telegraph) The deadliest weapon of the 21st century US Treasury officials warn that the American stock market could suffer a devastating crash, with one-third wiped off the value of shares, if Hank Paulson's plan for a $700bn state bail-out fails. One Republican said: "We're looking at 1930s stuff. We're looking at catastrophe." (Sunday Telegraph) In pictures: Banking's biggest crisis since the Depression Paulson’s plan to save the banks could cost a trillion dollars Profits have tumbled at Marks & Spencer, chairman and chief executive Sir Stuart Rose (left) will reveal this week. Both food and non-food sales are thought to have fallen by 7.5 per cent in the second quarter of 2008. First-half pre-tax profits are likely to fall below £300m. (Independent on Sunday) Stuart Rose, from hero to zero Between 50 and 200 private equity-owned firms are in danger of bankruptcy, raising the spectre of thousands of job losses, a private equity boss predicts. Jon Moulton of Alchemy Partners says the most vulnerable firms were the targets of highly leveraged bids between 2006 and 2007. (Observer) Financial crisis is a mess of Brown's creation The new film version of Evelyn Waugh's novel Brideshead Revisited, released in the UK this week, has come in for criticism from admissions tutors at Oxford and Cambridge. Tutors fear its depiction of students as champagne-quaffing "toffs" will put off prospective students. (Sunday Telegraph) People: Brideshead goes down badly in the US A sale at London auction house Lyon and Turnbull yesterday sent a chill through the art world after many lots failed to attract bidders, including a piece by model Kate Moss (left). Moss's lipstick self-portrait eventually sold for less than hoped. (Independent on Sunday) People: Kate Moss museum show Art lovers have been warned that they may find The Incommensurable Banner by Swiss artist Thomas Hirschorn "disturbing". The 59ft collage of images of war and death is going on show for the first time, in a gallery in Brighton. (Independent on Sunday) "One of the great 20th Century lives, a shining example of how to use global fame for greater good" - Sam Mendes on Paul Newman (left), who died yesterday. (Sunday Times) Former hostage Terry Waite (left) startled members of the Reading WI by saying that getting through their town's traffic was worse than being held captive for five years. (Observer) A row has broken out over plans to give Manchester United footballer Ryan Giggs the freedom of Salford. Union leaders want the award to go to Burmese political prisoner Aung San Suu Kyi instead. (Observer) Sir David Frost has hit a snag in the re-make of The Dambusters he is producing. In the original, the leading character has a dog called 'Nigger'. The decision has now been made to call the pet 'Nidge'. (Sunday Telegraph) A photograph has emerged of Ed Balls dressed as a Nazi. The shot was taken at a party when Balls was a student. (Sunday Times) TV chef Nigella Lawson (left) says her husband, Charles Saatchi, lost weight by eating nothing but nine eggs a day for months. (Mail on Sunday) Yasmin Fostok, the 27-year-old daughter of deported extremist preacher Omar Bakri Mohammed, has become a pole dancer. (Sunday Times) Brazillian author Paolo Coelho is to be the star guest at the Frankfurt book fair, where he will be feted for selling his 100 millionth book. (Independent on Sunday) The police caution handed to singer George Michael for possessing a Class A drug could put his lifetime achievement award, due to be presented at this year's Brits, in jeopardy. (Sunday Telegraph) Character actress Miriam Margolyes (left) says she regrets telling her mother she was gay 40 years ago, as she thinks it caused her to have a stroke. (Sunday Times) Barack Obama is to receive support from Eton College, David Cameron's alma mater. The school is sending a group of boys to the US to work on the Democrat candidate's campaign. (Observer) Labour MP Angela Eagle has become the first lesbian MP to enter a civil partnership, tying the knot with long-term partner Maria Exall. (Independent on Sunday) German actor Bruno Ganz (left) is the subject of a new web craze. A scene from Downfall in which he plays Hitler is being re-subtitled so that the Fuhrer appears to erupt in rage over news of football transfers or political events. (Observer) "I would say probably six out of 10 school kitchens would be condemned if the councils weren't running them themselves" - Jamie Oliver says that three years after his campaign to reform school dinners, little has changed. (Sunday Times) Rolling Stones guitarist Ronnie Wood has been photographed with his 23-year-old lover for the first time. Now Ronnie's wife Jo is thought to have called in lawyers to start proceeding for a £50m divorce. (News of the World) Cherie Lunghi has branded Len Goodman "ageist" after he said the 56-year-old actress was too old to win Strictly Come Dancing. Cherie said: "You're never too old to dance. I feel so fit." (People) Aussie singer Dannii Minogue (left)  has threatened to quit as a judge on the X Factor. She is furious that Cheryl Cole, who became a judge for this series, is already getting more air time than her. (Sunday Mirror) Brummie Cat Deeley, who presents the US TV show So You Think You Can Dance?, has found love with Jack Huston, the England-born nephew of movie star Angelica Huston. (Sunday Mirror) Danielle Bux, lingerie model girlfriend of Gary Lineker, has revealed that when she was an air hostess her crew used to play 'hide the bread roll'. A roll would be put in a sleeping passenger's lap by the first air hostess. The next had to find it, then move it to another passenger without waking them. (News of the World)