Here is a link to a post I wrote about magazines from calibre and how I've organized them on shelves, including a screen capture. The same comments apply to newspapers.
https://www.mobileread.com/forums/sho....php?p=1264456
I do mostly as you describe below. Transfer to the device and then drag and drop from Books into the correct folder. Basically, if the Fetch News is magazine content, then I place the files in My Files > Magazines. If the Fetch News is newspaper content, then I place the files in My Files > Newspapers.
I do one thing differently. I have calibre set-up so that after send to device it deletes the news content so it disappears from my calibre library. You can select this option in Preferences > Interface (Behavior).
You can see from the screen capture in the other post that I have even added covers to the calibre metadata so that it looks just like purchased content. The key to get issues of a single magazine / newspaper to appear on the same shelf is to set the Publisher name to be the same for each issue in the calibre metadata. I use the name of the magazine or newspaper as the Publisher. Otherwise it will place them all mixed up together in a group called calibre.
Hope that helps!