Newspaper round-up

LONDON (Reuters) - Here are the business headlines from Wednesday's newspapers.

The Financial Times

MPS' FUND BENEFITS FROM FALLING PRICES

MPs and ministers pouring scorn on hedge fund "spivs" in the City for reckless short-selling are likely to be embarrassed by the revelation that the 367 million pound parliamentary pension fund has itself invested in hedge funds that cash in on falling shares. For example, public accounts show the fund has placed seven million pounds with Quellos, a fund for hedge funds. John Ralfe, a pensions consultant, said: "It seems inconsistent for MPs whose own pension fund invests in hedge funds and short selling to criticise other people for doing the same."

EMPLOYERS FACE HIGHER BILLS FOR HEALTH BENEFITS

A new independent study by Mercer indicates that the cost to UK companies of providing employee healthcare benefits is one of the highest in Europe. UK firms spend an average of seven percent of payroll costs on healthcare provision, compared with a Europe-wide average of 5.3 percent. According to a separate survey published earlier this summer, the overall cost to UK employers of providing medical cover for employees and their dependents has risen 67 percent since 1999.

BANKS FACE CRACKDOWN ON LOAN INSURANCE SALES

The Financial Services Authority has launched a crackdown on alleged mis-selling of lucrative insurance products and has urged companies to reform their sales practices ahead of "escalating" intervention it was planning. In the interim, banks might "wish to consider" stopping selling lump sum insurance policies on unsecured personal loans, according to John Pain, managing director of the FSA's retail markets division.

BAD NEWS FOR 1,000 AS ITV CUTS JOBS