THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

--Observers say Malaysia Airlines and Qantas Airways are still months away from finalising a deal over establishing a new premium carrier based in Malaysia, with the two airlines still hammering out details of the fleet and network requirements for a three-way partnership. "An Asian hub with a lower unit cost base is conceptually the best method of addressing Qantas's shortcomings as an end-of-line carrier," Russell Shaw, analyst at investment managers Macquarie Equities, said. Page 16.

--Mining entrepreneur Edek Choros is reportedly looking to float his Ambre Energy coal export business in Australia for A$1 billion. Resource Capital Funds, the largest resources-focused private equity firm in the world, has injected A$100 million into Ambre, while Michael Mewing and the Mitchell family are also investors. "Most [initial public offerings] on the [Australian Securities Exchange] are start-up companies  we already have producing operations and we'll be exporting coal in the near term," Mr Choros said yesterday. Page 16.

--Global miners Rio Tinto and BHP Billiton will spend A$4.2 billion to boost production at their copper venture in Chile, although analysts have classified the move as just the "tip of the iceberg". Output at the Escondida mine shrunk by 25 percent last year to 860,000 tonnes, but the expansion is expected to boost output to 1.3 million tonnes by 2015, a 51 percent increase. Page 16.

--STW Communications yesterday announced a 6.8 percent increase in underlying net profit to A$41.3 million, with the marketing communications firm weathering a difficult economic climate. "Despite the state of the macro economy, we are growing strongly and our revenues are growing," Mike Connaghan, chief executive of STW, said. "Our balance sheet is strong and we continue to explore expansion opportunities in opening new revenue streams and new markets," he added. Page 42.

THE AUSTRALIAN (www.theaustralian.news.com.au)

--Australia and New Zealand Banking Group yesterday launched a A$500 million subordinated note issue, offering a 7 percent return to investors and highlighting the rising cost of capital for lenders. "With the volatility of equity markets since the global financial crisis many investors have been looking to diversify their portfolios," Rick Moscati, treasurer for ANZ Group, said. Page 19.

--DMG Radio Network, the conglomerate of radio stations that is half owned by Lachlan Murdoch's investment company Illyria, has managed to stem its full-year financial losses to A$5.7 million from A$7.5 million the year prior. The network also managed to increase its operating profits for the year to the end of September to A$5 million from A$1.5 million. "The business is now making real money, as opposed to before," an insider said. Page 19.

--The Australian Securities and Investments Commission yesterday published a guide that attempts to hamper the language of financial planners as part of its campaign against misleading financial advertising. "The global financial crisis has made it clear that it's not a sustainable business model to sell products that are inappropriate for the client," Peter Kell, commissioner at the corporate regulator, said. Page 19.

--Paladin Energy yesterday announced a A$112.5 million first-half net loss, with the company citing continued volatility in the uranium market following the nuclear power plant disaster in Japan last year. Paladin's loss, however, was marginally down on last year's, and the uranium producer revealed that production as its Namibian mines for the three months to December had reached record highs. Page 20.

THE SYDNEY MORNING HERALD (www.smh.com.au)

--Reserve Bank of Australia assistant governor Guy Debelle yesterday told a Bloomberg seminar in Sydney that the cost of funding for lenders had increased in the last few months, supporting arguments from the sector in favour of out-of-cycle interest rate rises. "Investors are demanding much higher compensation for bank credit risk now than they were in mid-2011," the assistant governor added. Page B1.

--BHP Billiton's largest shareholder, international fund manager BlackRock, has nearly doubled its holding in Genesee & Wyoming, a United States firm that will operate the rail line suggested as the export route for output from the global miner's Olympic Dam venture. The investment has increased expectations that the expansion of the Olympic Dam will receive government approval in the next few months. Pg B1.

--Administrators of recently collapsed furniture and bedding retailer Sleep City are facing the difficult prospect of untangling the franchise's complex ownership structure. Chinese mogul Zhu Zhangjin was a former director of Furniture and Bedding Concepts, Sleep City's operating company. Mr Zhu is a major shareholder and executive director of Sunbridge Industrial Group Co, Sleep City's owner. The businessman is also the executive chairman of Kasen International Holdings, a supplier to Sleep City and Sunbridge. Page B2.

--The latest business survey from National Australia Bank has revealed that 67 percent of Australian businesses had no interest in taking on debt last month, the highest number since 2008. "Either firms aren't keen to take on debt, internal sources of funding are healthy, or firms don't want to take on new projects," Craig James, chief economist at broker CommSec, said yesterday. Page B2.

THE AGE (www.theage.com.au)

--Shares in Leighton Holdings have continued to fall, with analysts forecasting losses of up to A$125 million on the contractor's problems in the Middle East and the hamstrung desalination plant in Victoria. Guy Robinson, analyst at financial services group Citigroup Capital Markets, told clients yesterday that the desalination plant may not begin operating until the middle of next year. Page B1.

--NBN Co's A$11 billion agreement with Telstra could be on the verge of collapse unless the telecommunications giant agrees to a demand from the competition regulator that would see it lose A$55 million in yearly revenue. The Australian Competition and Consumer Commission has said it will reject Telstra's structural separation undertaking unless a cap on wholesale broadband prices is implemented. Page B3.

--Chloe Munro, the incoming head of the Clean Energy Regulator, yesterday warned Australia's top 500 corporations that will pay the carbon tax that no leniency will be handed out in the first year of the tax's implementation. "The carbon pricing mechanism has been talked about for a long time  I don't think there is an excuse for being entirely ignorant," Ms Munro said. Page B3.

--Fortescue Metals Group has seen its share price soar by 7 percent this week to A$5.61, with analysts predicting an upswing in the iron ore sector as the cause of the miner's good fortune. The rising share price has added A$364 million to the wealth of Andrew Forrest, chairman and founder of Fortescue, who owns 31.6 percent of the miner. The company will announce its interim results today. Page B4.

• A Permanent Economic Emergency