WHAT THE OTHER PAPERS SAY THIS MORNING

FINANCIAL TIMES

China opens door to foreign hedgies
China has given foreign hedge funds permission to tap its wealthy citizens inside the country for funds to invest overseas, according to people in the industry. The move represents another important step by China to open its capital account – a process that involves dismantling regulations separating China from international markets.

Rail chairman wades into pay storm
The constant sniping at Network Rail about its executive bonus scheme has to stop or the organisation will lose talent to the private sector, its outgoing chairman has warned. Rick Haythornthwaite cautioned that any intervention by politicians would seriously damage the company’s ability to attract talent.

Seeking the right pitch over EMI
Universal Music, the record company behind Rihanna, will propose to regulators in the coming weeks a “manifesto” for restoring music industry growth as it seeks to save its £1.2bn bid for EMI’s recorded music business, its chief executive has said.

THE TIMES

Property owner opens door to float
Deutsche Annington Immobilien Group, a German property vehicle owned by Guy Hands’ private equity firm Terra Firma, has proposed a €4.3 billion debt restructuring in a move that could pave the way for a possible flotation of the business.

Vue looks at big picture in Germany
Vue’s purchase of Cinemaxx, a Hamburg-based operator of multiplex screens, in a deal worth €175m is being touted as the next step in its expansion across Europe.

The Daily Telegraph

Government to retain NATS stake
The Government has abandoned plans to sell off its 49 per cent stake in the National Air Traffic Service amid fears the group could have fallen into foreign hands.

Portugal’s recession set to ease
The Portuguese economy is set to shrink by three per cent this year instead of 3.4 per cent forecast previously, the national central bank has said. The economy contracted by 0.1 per cent in the first quarter of the year, which was less than expected.

THE WALL STREET JOURNAL

Levi slips on weakening sales
Levi Strauss’ fiscal second-quarter profit slid 38 per cent as the jeans maker’s revenue declined in Asia and Europe and as cotton costs continued to increase, reflecting a “challenging global economy”.

AMR to explore merger
options American Airlines parent AMR plans to sound out potential partners about a merger or other investment deals in coming weeks, said people familiar with the matter, setting the stage for a showdown over the airline’s path out of bankruptcy.