WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

PAULSON FUND FALLS 6PC IN MAY
Paulson & Co, the world’s third- largest hedge fund, saw the value of its flagship fund drop close to 6 per cent in May, echoing losses across the industry. The loss tops negative returns in the first quarter at the $37bn (£22.5bn) New York-based money manager, famed for the big returns gained by shorting the US mortgage market in 2007, and will again raise questions over its portfolio’s volatility.

LOBBYING PLAN BRINGS PROPRIETARY TRADING OUT OF SHADOWS
Fifteen of the largest trading firms that use their own money to trade in equities, derivatives and foreign exchange markets are setting up a European lobby group as regulators intensify their scrutiny of rapid electronic trading. It is a sign that such firms are becoming less secretive.

LEGENDARY PICTURES CALLS ACTION ON $700M FILM FINANCING DEAL
Legendary Pictures, the company behind Inception, The Dark Knight and The Hangover, will this week finalise a $700m (£426m) financing, production and a refinancing of its senior debt. The company, founded in 2004 by the financier Thomas Tull, has scored with its latest move, The Hangover Part II.

COST OF EXECUTIVE STYLE POISED TO INCREASE AS PRICE OF WOOL DOUBLES
Chinese demand and flooding and droughts in Australia are set to make the suit, the uniform of executives and politicians across the world, at least 10 per cent more expensive as wool prices have doubled in the pat year to a record high. In Australia, the world’s largest producer of wool, benchmark prices hit a high of $14.85 a kilo last week, having doubled over the past 12 months in US dollar terms. The sharp cost increases are working their way through the global supply chain.

THE TIMES

HEINEKEN STANDS ACCUSED OF RENEGING ON PENSION PROMISE
Parliament has been asked to investigate the conduct of Heineken after members of the main pension plan of Scottish & Newcastle, which the Dutch company bought in 2008, accused it of breaking its word and watering down their pensions. Fund members said that Heineken had gone back on a promise that helped to smooth the way for the takeover.

BIG SIX REACH PEACE DEAL OVER ENERGY REFORMS
Britain’s big energy companies have avoided the prospect of a damaging Competition Commission inquiry by agreeing to co-operate with a market investigation by the energy regulator. The initial consultation regarding Ofgem’s proposals to break the firms’ dominance and secure a better deal for consumers ended last Wednesday.

The Daily Telegraph

UK FARMING IN CRISIS AS DROUGHT HITS CROP YIELDS
The prolonged dry spell is severely impacting on the production of grain, leading to higher prices of foodstuffs such as bread and peas and supplies of beer. An official state of drought is likely to be declared in East Anglia, where only a fifth of the usual rainfall has dropped on the region’s thirsty plants.

BANK CHIEFS FACE MP GRILLING ON LENDING
The bosses of Britain’s largest banks will this week face tough questioning from MPs on their failure so far to hit the lending targets agreed earlier this year as pressure grows for a new tax on bankers’ bonuses. Stephen Hester, chief executive of RBS, and Bob Diamond, chief executive of Barclays, will be appearing before the Treasury Select Committee on Wednesday.

THE WALL STREET JOURNAL
EUROPE

NOVARTIS DRUG EXTENDS LIVES IN GASTROINTESTINAL CANCER
Novartis’ cancer pill Gleevec extended the lives of patients with a type of gastrointestinal cancer over the long-term when they took the drug for three years after surgery, as compared with the commonly used regimen of just a single year. Gleevec is a targeted therapy that essentially turns off certain proteins within cancer cells that cause them to grow and spread.

US PROBING TECH GIANTS' PATENT DEALS
The Justice Department is scrutinising likely bidders for a trove of patents being sold by the bankrupt Canadian telecom-equipment maker Nortel Networks amid concerns the patents could be used to unfairly hobble competition, according to people familiar with the matter.