The newspaper itself is simply a plot device. Other characters will usually "show" the player the latest volume. It often reports major events from the storyline, while other times it has articles about other key concepts and characters from the game. The text appears as blurry lines, so only the headlines and the pictures are readable. Some of the pictures of events like the player fighting Ice's Froslass, couldn't have been taken as there was nobody else around. Early pictures of Team Dim Sun were also blurry.
Often times after an important event, other characters will comment on the subject of the latest issue, and then "show" the player the issue. Previous issues can be viewed again on the second floor of a building in southwest Pueltown, where they are stored in bookshelves.