WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

Esma probes agencies’ views on banks
The pan-European markets regulator has launched a probe into the way the big three credit rating agencies evaluate banks to determine if the process is sufficiently rigorous and transparent, its chairman Steven Maijoor told the Financial Times. The European Securities and Markets Authority has begun inspecting Standard & Poor’s, Fitch and Moody’s Investors Service and expects to finish by the end of the year.

Gilts face disruption during Olympics too
As London braces itself for feared transport congestion when the Olympic Games start this month, the disruption looks set to hit an unexpected victim: the government bond market. The UK Treasury has called off gilt auctions between mid-July and mid-August.

Heathrow decision on ice
The coalition is planning to delay a decision on whether to build new runways in the south-east amid deep splits between the Tories and Liberal Democrats.

THE TIMES

Alarm as pension changes paint healthier picture
Employers are being warned not to flatter their accounts by making unrealistic pension assumptions as it emerged one employer in eight defied all the evidence on rising longevity and cut projections for staff life expectancy last year.

Era of unmanned flight draws closer
The end of the RAF fighter pilot has moved a step closer as BAE Systems will test unmanned aircraft in British airspace.

The Daily Telegraph

Pulling Xstrata deal could cost Glencore £300m break fee
Glencore could be forced to pay almost £300m in break fees if it decides to walk away from its planned merger with Xstrata, documents show.

China manufacturing growth slows
China’s manufacturing activity expanded at its weakest pace for seven months in June, despite government attempts to arrest the slowdown, raising fears about China’s ability to power the global economy.

THE WALL STREET JOURNAL
EUROPE

Global IPO Market Keeps Shrinking
The global IPO market continued its downward track in the second quarter, notching its fourth consecutive period of declining deals in nearly every corner of the world.

Former Ruling Party Expected to Win Mexico Vote
The polls closed yesterday as Mexicans picked a new president, a three-way race widely expected to sweep its former ruling party back into power.