Latest Category Possibility?

I’ve been reading this forum for a while looking for an answer to my question but I keep coming up short. I’ve seem lots of people ask but the questions don’t really match my requirements.

Basically I need to create a newspaper website for a client… sounds familiar I know however all the posts I’ve looked at seem to go along the lines of wanting themes or just wanting to highlight the latest post.

My question is: Is it possible to show only the latest category created within the loop?

My idea is to create top level categories which will be used by the readers such as News, business, sports, etc and then have another category for editions, so all posts will be assigned to two categories 1 top level category and one sub category within editions. and then within the loop only display posts in top level category i.e. Business and LATEST editions subcategory.

I’ve looked for plugins, posts, hacks but I can’t seem to find anything that does this or anything similar?

any suggestions or ideas on how to accomplish this? or am I thinking of something impossible? thanks in advanced for any help.