WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

POLL SHOWS MAJORITY OF INVESTORS USE VOTES
Almost eight in 10 UK institutional investors exercise their voting rights in all the companies in which they own shares, according to a survey by the Investment Management Association. The finding, in a report setting out the extent of shareholder involvement in the early days of the stewardship code of conduct launched last year, confirms the UK as the market where shareholders are most likely to engage with the companies through voting.

BRUSSELS URGED TO MORE FLEXIBLE OVER BASEL RULES
Brussels is being urged to give European Union countries more flexibility when it tries to implement the new Basel III rules on banking capital across the 27-country bloc later this year.

TPG POACHES GOLDMAN CHINA DEALMAKER SUN
TPG has poached one of Goldman Sachs’ Chinese dealmakers as the US private equity group seeks to rebuild its team in China following a number of recent defections. Steve Sun, a principal in Goldman’s private equity firm in Hong Kong, is set to join TPG’s China group alongside Sing Wang, also a former Goldman executive, and Ricky Lau. Sun has been offered the prospect of a percentage of the profits on any deal he completes.

BUY-OUT GROUPS IN RECORD SALES SPREE
Private equity groups have cashed in a record amount of money by selling companies in the past two months as they aim to hand cash back to investors to attract them into their next funds. The value of companies sold by buy-out groups worldwide reached a high of $85bn (£52.5bn) in April and May, data by Preqin, which collects industry data, shows.

THE TIMES

TOP JUDGE TO FACE MPS IN SEARCH FOR SOLUTION TO PRIVACY LAW CRISIS
Britain’s most senior judge could appear before a committee to tackle the crisis over privacy laws in an attempt to defuse the situation. Lord Judge, the Lord Chief Justice, said yesterday that the judiciary would assist the new parliamentary committee set up by the Prime Minister to look into the current crisis over privacy orders imposed by the courts.

HOTELS TO CASH IN ON CHINA’S RUNAWAY GROWTH
InterContinental Hotels Group is about to unveil a deal with a state-owned Chinese property group to develop six hotels costing more than £350m in total. It expects China to account for a quarter of all new rooms globally over the next five years.

The Daily Telegraph

CHINESE TOURISTS BRING £200M WINDFALL FOR LONDON RETAILERS
A sharp jump in the number of Chinese tourists has brought a £200m windfall for retailers in central London, the government will announce today. The Chinese are already outgunning their Russian counterparts – spending an average of £600 each time they walk into a store - but they cannot yet match the eye-watering largesse of the Arabs, who spend £1,800 on average.

EUROPE DEBT CRISIS POSES THREAT TO US RECOVERY, SAYS FEDERAL RESERVE’S JAMES BULLARD
The intensification of Europe’s debt crisis poses a threat to the US economic recovery, a senior official from the Federal Reserve has warned. The turmoil in financial markets leading up to Greece’s bail-out last May may have added to a slowdown in US growth.

THE WALL STREET JOURNAL

VOLKSWAGEN CONSIDERS BUILDING US AUDI FACTORY
Volkswagen AG will decide in the next 12 months whether it will build Audi luxury cars in the US in addition to VWs it is churning out at a new factory here, the company’s chief executive said yesterday. The German auto maker hopes to dramatically increase US sales of VWs and Audi luxury cars over the next five years. It is counting on its new Chattanooga plant to lower production costs of a key VW sedan.

SEC DEEPENS PROBE OF FOREX TRADING
Federal securities regulators are taking a deeper look at the role of big banks in executing currency trades for clients. The SEC is examining whether two major banks made proper representations to pension-fund clients about currency trading.