What the other papers say this morning

FINANCIAL TIMES

HEDGE FUNDS BET ON REVIVAL OF FORTUNES
After one of their most disappointing years, hedge fund managers are hoping for a better 2011 with less macro economic volatility and more corporate events to bet on, such as takeovers. As of the end of November, the average hedge fund had returned just over 7 per cent for the year, according to Hedge Fund Research – underperforming leading stock market indices over the same period. Among hedge funds, equity long/short managers – who follow the most common hedge fund strategy – averaged just 6.7 per cent, according to HFR. Investors in hedge funds expect better performance ahead.

CHINA EYES CREATION OF GLOBAL RAIL LEADER
China is considering merging its two dominant state-owned railway equipment producers to lead a high-speed rail export drive, in a move that would create the world’s largest company of its kind in terms of operating revenue. If approved, the merger of China North Locomotive and Rolling Stock Corp (CNR) and China South Locomotive and Rolling Stock Corp (CSR) would form an entity controlling well over 90 per cent of the domestic Chinese rail equipment market.

LOVEFILM EYES BENEFITS OF PAY-TV MOVIE RULING
Lovefilm, the DVD rental and online movie company, is poised to exploit a possible loosening of British Sky Broadcasting’s grip on movies shown on UK pay-television, according to one of its founders. Simon Morris, who is the chief marketing officer of Lovefilm, said yesterday that a recent European Commission statement about British Sky Broadcasting’s arrangement with the six largest Hollywood studios was “very interesting to us”.

THE TIMES

OVERBLOWN BBC SHOULD TRIM ITS SAILS, SAYS ATTENBOROUGH
The BBC is too big and should cut back on some of its activities, Sir David Attenborough, the naturalist and veteran of the corporation, has warned. Sir David, a former controller of BBC Two who oversaw the introduction of colour television to Britain, said that in recent years the BBC had “strayed from the straight and narrow on a number of courses”.

CABLE OFFERS A MODERN PASSAGE TO INDIA
The first part of the Europe India Gateway, running from Bude on the North Cornwall coast to Egypt, will come on stream in March and by the summer the rest of it, running through the Suez Canal to the west coast of India, touching thirteen countries, will be running. It will enable speeds of up to 100 gigabits per second.

The Daily Telegraph

BRAZIL PLEDGES TO STOP US MELTING THE DOLLAR
Brazil has sounded a new note of warning in the international “currency war” by pledging not to allow the United States to “melt the dollar”. Guido Mantega, the Brazilian finance minister, raised the prospect of introducing greater controls on short-term flows of speculative capital into his country.

EU PLANS FOR BONDHOLDER HAIRCUTS UNSETTLES DEBT MARKETS
The European Commission will today press ahead with plans to spread the burden of EU bank failures to senior bondholders, marking the start of harsher times for Europe’s creditors.

Michel Barnier, the single market commissioner, will publish a “consultation paper” outlining ways to shield taxpayers from banking crises – the first stage of an eventually binding law.

THE WALL STREET JOURNAL

HP MARKETING CHIEF LEAVES
Hewlett-Packard chief marketing officer Michael Mendenhall has resigned, according to people familiar with the matter, one of the first departures from among HP’s senior ranks since Leo Apotheker became chief executive in November. Mendenhall, who is also an HP senior vice president, is leaving for a new job, these people said.

AT&T PINS 4G LABEL TO EXISTING NETWORK
AT&T flipped a switch and turned on its 4G wireless network yesterday. The switch, however, was in the company's marketing department. By relabeling its existing 3G network, the country's second-largest wireless carrier joined the noisy fray over so-called fourth-generation wireless technology promising super fast mobile Internet speeds.