What the other papers say this Morning

FINANCIAL TIMES

Warning on cost of shares for rights
George Osborne’s “shares for workers’ rights” initiative could end up costing Britain £1bn a year in lost revenues, the Office for Budget Responsibility has warned, at the same time as the government battles to clamp down on tax avoidance schemes. The long-term potential cost of the chancellor’s policy, buried in an annex to the Autumn Statement’s costing documents, is likely to fuel controversy over the employment initiative that got the go-ahead last week in spite of a poor welcome from business.

UK ready to trust US on failing banks
UK authorities are prepared to “trust” US counterparts the next time a big American financial company runs into financial trouble and will refrain from seizing local assets and capital, said Paul Tucker, the deputy governor of the Bank of England.

Internet regulation plan dropped
A controversial proposal that would have led to international regulation of internet companies such as Google and Facebook has been sidelined after losing the support of Russia and China, it emerged yesterday.

THE TIMES

Johnson hires City veteran Lyons
Boris Johnson has hired Gerard Lyons, who stepped down as Standard Chartered’s chief economist this month, to bolster his policy team as London’s status is challenged by emerging markets.

Diageo’s tequila deal hits rocks
Diageo chief executive Paul Walsh is close to calling time talks over an estimated £2bn deal to acquire the Mexican tequila maker Jose Cuervo, following frustration at the owners’ failure to agree terms.

The Daily Telegraph

Ex Rolls-Royce employee “cheated”
A whistleblower at the centre of bribery allegations concerning Rolls-Royce claims he was left feeling “depressed” and “cheated” by his experiences at the FTSE 100 manufacturer.

Huawei “in middle” of US tensions
Controversial telecoms giant Huawei is the victim of political tensions between the US and China, the company’s chairman and founder, former People’s Liberation Army officer Ren Zhengfei, has claimed.

THE WALL STREET JOURNAL

King warns of exchange rate wars
Bank of England governor Mervyn King warned of the risk of currency wars in the coming year as nations search for new ways to spur their economies in a world of slow growth and few other good options.

Audit regulator criticises big firms
The US Public Company Accounting Oversight Board reported an increase in the percentage of audits of “internal controls” at companies that were flawed because of failings by accounting firms.