9 July 2011 Last updated at 02:15 ET

Newspaper review: Hacking scandal spreads to No 10

The News of the World (NoW) phone-hacking scandal remains the main story in many papers, with the Independent asking: "Is this Britain's Watergate?"

Several papers join Labour leader Ed Miliband in questioning Prime Minister David Cameron's judgement in previously employing NoW editor Andy Coulson.

Mr Cameron's links to Rupert Murdoch's media empire have now "tainted his Premiership", argues the Daily Mirror.

It has given Mr Miliband "perhaps his best week in the job", says the Times.

'Two years plus'

The Daily Express notes the admission of News International chief executive Rebekah Brooks that "worse is still to come", with another "two years plus" of scandal possible.

The Independent reports that a Sunday edition of the Sun is being planned to succeed the axed News of the World.

The Financial Times says the scandal is threatening to "delay or even derail" News Corp's attempt to buy BSkyB.

Investors' fears for the deal led to a 7% fall in BSkyB shares on Friday.

Gas explosion

There is condemnation of British Gas's increases in energy bills, with the Daily Mail exclaiming: "Flaming cheek!"

Raising "energy bills to their highest ever levels", despite relatively low wholesale gas prices, "betrays appalling insensitivity to customer loyalty", the paper argues.

The Sun points out that British Gas enjoyed record profits just months ago.

In a Times cartoon, a British Gas executive suggests the hacking scandal made it "a good day to bury bad news".

Last leap for mankind

Many papers report on what they call "the final countdown" as the last Space Shuttle mission blasted off from Cape Canaveral in Florida.

Atlantis "takes its last leap for mankind", says the Daily Telegraph, recalling another moment of space exploration history.

The Guardian suggests that the end of the shuttle doesn't matter much in terms of scientific advancement.

It says deep space can be explored more usefully and cheaply with robots.

Ian Collins, John Torode and Tim Montgomerie with a look at Sunday's papers

Ian Collins, John Torode and Tim Montgomerie with a look at Sunday's papers