WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

FOX SAVAGES TREASURY ON DEFENCE CUTS
Liam Fox, the defence secretary, has launched a big assault on the Treasury’s attempt to slash his department’s budget, warning that “draconian” cuts to military spending cannot be implemented without “grave consequences” for the Conservative party and the government. In a head-on attack on chancellor George Osborne’s call for cuts of up 20 per cent in the Ministry of Defence budget, Mr Fox has told David Cameron that he refuses to back any substantial reduction in funding for the armed forces.

MEDVEDEV SACKS MOSCOW MAYOR
Dmitry Medvedev, Russia’s president, took the risky move of sacking Yuri Luzhkov, the Moscow mayor, one of the few remaining powerful politicians independent of the Kremlin.

LAW FIRM FACES PROBE OVER WEB PIRACY LEAK
A law firm that has built its business on pursuing illegal file-sharers is facing investigation by UK data protection officials after the personal details of thousands of people it accused of piracy were published online. Acting on behalf of content owners, ACS:Law has sent letters demanding settlements running into hundreds of pounds to UK broadband customers.

GOME VOTE TO SPARK NEW POWER STRUGGLE
The battle for control of Gome Electrical Appliances Holding, one of China’s largest electronics retailers, is set to rumble on after its jailed founder blocked the company from issuing new shares that would have diluted his stake. In a packed special general meeting on Tuesday Gome shareholders voted in favour to revoke the company’s “general mandate”.

THE TIMES

FRENCH INVESTIGATE RYANAIR IN MARSEILLES JOBS DISPUTE
Ryanair has been placed under formal investigation by a French judge on suspicion of flouting France’s costly and protective labour laws by employing staff at its base in Marseilles on Irish work contracts. The airline responded to the latest move in its dispute with the French authorities by reiterating a threat to close its Marseilles operation.

DOZENS OF SUB-STANDARD CARE HOMES CLOSED
Almost 100 care homes and home-help services in England have been shut down or closed voluntarily in the past year because of poorly trained staff and substandard treatment of residents. Bullying of patients, poor management of drugs and staff shortages were among the problems that prompted action.

The Daily Telegraph

AOL MERGER WAS 'THE BIGGEST MISTAKE IN CORPORATE HISTORY'
Jeff Bewkes, the chairman and chief executive of Time Warner, has accepted that Time Warner’s merger with AOL was “the biggest mistake in corporate history”, but said it had helped the company focus on its strengths. Mr Bewkes said he had learned post-demerger that “the recipe for success” of any company is “you have to know what you are”.

VIRGIN BEATS SKY TO 3D SERVICE LAUNCH
Virgin has launched a 3D Movies On Demand channel, three days ahead of Sky’s own 3D channel going live. Virgin’s 3D Movies On Demand service has gone live and can be accessed by consumers who have a Virgin HD plus set-top box, a 3D-ready TV and a pair of 3D glasses. The movies will be available on a pay-per-view basis.

WALL STREET JOURNAL

UNION OPPOSES WAL-MART DEAL IN SOUTH AFRICA
South Africa’s largest labor group came out against Wal-Mart’s $4.6bn offer to buy Massmart Holdings. The Western Cape provincial arm of the Congress of South African Trade Unions said Tuesday it was alarmed that Massmart is considering an offer from the Bentonville, Ark., retail giant to take over one of the country’s “key strategic national companies.”

UK'S IMMIGRATION RULES SLAMMED
Large corporations and other employers are turning up the heat on the UK government as it finalizes new immigration rules that industry says would restrict their ability to recruit key talent. Firms that have expressed concern include GlaxoSmithKline, International Business Machines, General Electric, JP Morgan Chase and Deutsche Bank.