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WHAT THE OTHER PAPERS SAY THIS MORNING

<strong>FINANCIAL TIMES</strong><br /><br /><strong>COMPLEXITY IS KEY TO OVERCOMING RECESSION</strong><br />Lord Mandelson, the business secretary, will today announce the allocation of &pound;150bn to fund companies&rsquo; advance manufacturing development projects in areas such as aerospace, nuclear engineering components, electronics and microchip designs. Most of it will come from the &pound;750m cash pot set aside by ministers this year to support &ldquo;industrial projects of strategic importance.&rdquo;<br /><br /><strong>EUROZONE DATA POINT TO LENDING UPTURN</strong><br />Eurozone banks are starting to step up lending as they respond to emergency policy steps aimed at countering continental Europe&rsquo;s severe recession. Data from the European Central Bank pointed to a modest turnround in lending and a pick-up in banks&rsquo; purchases of longer-term assets, and provided the latest evidence of economic stabilisation across the 16-country eurozone.<br /><br /><strong>DEEPER SINO-US TIES URGED BY OBAMA</strong><br />Barack Obama yesterday sought to recast America&rsquo;s relationship with China, urging Asia&rsquo;s rising superpower to forge deeper ties with Washington on the economy, climate change and nuclear proliferation. The US president predicted Washington&rsquo;s relationship with Beijing would &ldquo;shape the 21st century.&rdquo;<br /><br /><strong>JAPAN SPENDING PITCH </strong><br />Japan&rsquo;s opposition Democratic party launched its manifesto for next month&rsquo;s general election promising dramatic administrative reform and generous social spending. The DPJ is riding high in opinion polls ahead of next month&rsquo;s general election and seems likely to win a historic victory over the long ruling Liberal Democratic Party.<br /><br /><strong>THE TIMES</strong><br /><br /><strong>BAY GROUP SECURES DEBT-FOR-EQUITY RESTRUCTURING</strong><br />Doubts over the future of Bay Restaurant Group, the company behind the La Tasca and Slug and Lettuce chains, will be allayed today when the company announces a financial restructuring involving a debt-for-equity swap. The group has agreed terms with Kaupthing, the Icelandic bank, and Commerzbank of Germany on a refinancing that will reduce its debt burden by an estimated &pound;100m to &pound;150m.<br /><br /><strong>SIR RICHARD POURS &pound;30M INTO VIRGIN BLUE</strong><br />Sir Richard Branson is to bail out his Australian airline with a &pound;30m injection of new funds. Virgin Blue, which is one quarter owned by Branson&rsquo;s Virgin Group, said it will raise A$231.4 m in a rights issue after experiencing the most challenging period.<br /><br /><strong>The Daily Telegraph</strong><br /><br /><strong>BT SIGNS VIDEO ON-DEMAND DEAL WITH SONY PICTURES</strong><br />BT has signed an agreement with Sony Pictures Television for video-on-demand rights to a range of new and classic movies for its digital TV service, BT Vision. Customers can watch hit films including Terminator Salvation: The Future Begins,&nbsp; and Da Vinci Code follow up Angels &amp; Demons. All Sony&rsquo;s films on BT Vision will be available on a pay-per-view basis, without a subscription.<br /><br /><strong>OFCOM ON TRACK TO APPOINT CHANNEL 4 CHAIRMAN</strong><br />Ofcom, the communications regulator, said that it is on track to appoint a replacement to Luke Johnson, the chairman of Channel 4, when he leaves at the end of this year. Two or three headhunters have now been short-listed and the process is set to begin in&nbsp; September.<br /><br /><strong>WALL STREET JOURNAL</strong><br /><br /><strong>UBS HIRES MERRILL'S MAGNUS TO RUN SINGAPORE BANKING TEAM</strong><br />UBS yesterday hired Keith Magnus from Merrill Lynch to run the Swiss bank&rsquo;s Singapore and Malaysia investment banking team, according to a person familiar with the situation &ndash;&nbsp; the latest blow to Bank of America&rsquo;s efforts to keep its Asia investment banking team intact. Singapore is a key market for investment banks.<br /><br /><strong>GM TREASURER EXPECTS TO GET ADDITIONAL ENERGY FUNDING</strong><br />General Motors Treasurer Walter Borst said yesterday the auto maker expects billions in additional Energy Department funding now that the auto maker is &ldquo;viable.&rdquo; GM has applied for more than $10bn in Department of Energy funds. GM expects to receive most, but not all of that funding if the DOE approves GM&rsquo;s loan request.