WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

DEMOCRATS FACE MIDTERM MELTDOWN
Barack Obama’s Democratic party faces a series of dramatic defeats at every level of government in Washington and beyond in the November midterm elections, according to leading analysts and opinion polls. The University of Virginia’s widely monitored Crystal Ball will today forecast sweeping setbacks on Capitol Hill and the loss of a clutch of state governorships on November 2. It follows a Gallup poll that showed the Republicans with a 10 percentage point lead over the Democrats – the widest margin in 68 years.

UK TO LAUNCH COMPREHENSIVE POLICING OF ONLINE ADVERTISING
The UK is to introduce one of the world’s most ambitious attempts to police online marketing next year, when the Advertising Standards Authority extends its regime to corporate websites, social networks and mobile applications.

LIB DEM MEMBERS GIVE POLL BOOST TO CLEGG
Nick Clegg and his fellow senior Liberal Democrats have been given a timely boost ahead of a potentially fractious party conference by the results of a survey showing that support for Mr Clegg among party members remains high. But the survey of almost 600 members shows that net support for the coalition has begun to slip, falling to 45 per cent in August from 57 per cent in July.

FLEXIBLE LEADERS REAP REWARD OF TRUST
Chief executives who managed to protect jobs during the recession through measures such as flexible working or reduced hours are reaping the reward of higher levels of trust from their staff, according to research published today.

THE TIMES

JAL TO CUT 16,000 STAFF IN RESTRUCTURE
Japan Airlines took the first step to return from bankruptcy today when it submitted a rehabilitation plan to shed 16,000 jobs, cut routes and sell its hotels. The company said that it was studying the possibility of launching a low-cost carrier as Japan’s economic recovery continues to falter and consumer spending remains weak.

EDF PASSES ON HIGHER COST OF ELECTRICITY
EDF Energy will raise electricity prices by 2.6 per cent for more than a third of its customers from October 1 and is reviewing its gas prices. Europe’s biggest utility company said that it was forced to raise tariffs after being hit with a 16 per cent rise in distribution and transmission costs since it increased prices last year.

The Daily Telegraph

CREDIT SUISSE DEFENDS ITS BANKERS’ MID-YEAR BONUS
Credit Suisse has defended a decision to award its London-based bankers with a surprise mid-year bonus by claiming that it had no choice after its compliance with British rules on pay backfired. The Swiss bank suggested its decision to distribute a multi-million pound bonus-round, a move that looks set to re-ignite the row over City pay, was necessary to avoid losing key people to its rivals over the next few months.

AMERICA FACES CRISIS OF LEADERSHIP LEADING WALL ST INVESTOR WARNS
America faces a “crisis of leadership” that is damaging the country’s recovery, one of Wall Street’s leading hedge fund managers, Daniel Loeb, has warned in a scathing attack on President Barack Obama.

WALL STREET JOURNAL

FRANCE SEEKS COMMODITIES OVERSIGHT
France is calling for tighter oversight of European commodity derivatives markets in order to curtail price volatility, as US regulators also gear up to implement new rules to govern complex financial instruments. Three French ministers called the current regulatory regime "insufficient" in a letter to Michel Barnier, the European Union commissioner for internal markets and services.

ISRAEL’S GAS-TAX REVIEW DRAWS FIRE
Energy companies involved in recent large natural-gas discoveries offshore Israel have warned that any move by the government to increase its share of tax and royalties from natural resources may jeopardise investment in the country’s expanding energy sector.