Newspaper headlines: May 'clings on' as Britain 'swelters'

The Times feels Theresa May has been left exposed after the Democratic Unionist Party warned its support for her minority government could not be taken for granted.

It suggests two possible sticking points are the impact of any deal between the two parties on the peace process and the scale of the increase in future spending in Northern Ireland.

The Guardian thinks there is concern within the DUP that this extra spending could enrage English, Scottish and Welsh Tories over special treatment.

The Sun reports that a minister has now put the chances of an agreement for five years as only 50:50 due to the DUP's cash demands for Northern Ireland.

Image copyright Reuters

The Daily Mirror is dismissive - saying "you cannot even describe it as a coalition of chaos as she has not been able to assemble a coalition".

The failure to secure agreement, says the paper, leaves her as the first prime minister in more than 40 years to present a Queen's Speech without a guaranteed majority.

The Daily Telegraph says it understands the DUP is now prepared to walk away from a formal deal with the government entirely and decide whether to back the Tories on a "case by case" basis.

The paper also reports on speculation that the Conservatives could approach the Liberal Democrats for support now that Tim Farron - who opposed any deal with the Conservatives - has stepped down as leader.

Get news from the BBC in your inbox, each weekday morning

A 'fine' speech

There is much analysis of the chancellor's Mansion House speech on Tuesday.

The Times believes Mrs May's fall from grace has given Philip Hammond new power and he is determined to use it to stop Britain making, in his view, catastrophic mistakes on Brexit.

Although he did not breach any collective government positions on Brexit or the economy, argues the paper, it is inconceivable that he could have delivered such a speech before the election a fortnight ago.

The Guardian senses that Mr Hammond, rather than the PM, now has the upper hand in shaping policy on Brexit.

The Financial Times tells how Bank of England Governor Mark Carney used his Mansion House address to defend London's role as a hub for global derivatives trading.

The Daily Mail praises what it calls a "fine speech" in which Mr Carney went in to bat for Britain, delivering a blunt warning to the EU: hands off the City. At last, it says, he speaks like a "true Briton" and he seems firmly on the UK's side.

The Telegraph reports that Sir Vince Cable has agreed to step down as Liberal Democrat leader after three years if he wins the leadership.

The paper says it understands that he has hammered out a deal with the party's new deputy leader, Jo Swinson, that would allow her to take over.

Sir Vince tells the paper: "It's a simple fact of life if I decided in three years' time to let someone else take over she is ideally placed to do it."

'Endangered' mice

Finally, the Mail tells how the dormouse - once a common sight in English hedgerows - is on the brink of becoming an endangered species.

Numbers are said to have fallen almost three quarters in the past 20 years. Warmer, wetter weather and the loss of its woodland habitat are thought to be to blame.

The Mail offers its readers some interesting facts about dormice - including their ability to double their body weight before hibernation on a diet of hazelnuts, fruit and insects.

Image copyright PA