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Friday Papers: BofA to pay £10bn in mortgage case

Friday Papers: BofA to pay £10bn in mortgage case

Top stories

  • Daily Mail: Bank of America has been fined a record £10 billion by the US government for mis-selling bundles of toxic mortgage debt.
  • The Guardian: Spending in food stores fell for the first time on record in July amid intense competition between Britain's biggest supermarkets while consumers have yet to feel the benefit of recovery in their pockets.
  • Daily Express: Standard Chartered bank could face legal action in the United Arab Emirates after it agreed to close some accounts there as part of an anti money-laundering settlement in the US.
  • Daily Mail: The UK government borrowed £764 million in July - down from £1.6 billion in the same month last year, according to the Office for National Statistics.
  • The Guardian: Russia shuts down four McDonald's restaurants in Moscow over alleged sanitary violations.
  • Financial Times: Eurozone government borrowing costs sank to historic lows on Thursday as investors increased bets that the European Central Bank would take aggressive action to avert a deflationary slump, following early data indicating that the region’s recovery slowed in August.
  • Financial Times: A planned $2 billion deal between Rosneft and oil trader Vitol has been shelved.

Business and economics

  • Daily Express: Currency fluctuations left Sportech’s revenues in the first half of the year 3% lower at £52.6 million and underlying profits marginally lower at £6.3 million.
  • Daily Mail: Burberry's boss and creative guru Christopher Bailey has pocketed more than £5.2 million after selling shares in the fashion house.
  • The Daily Telegraph: Scottish independence may trigger immediate capital flight, warns HSBC chairman; Douglas Flint says loss of currency "anchor" from which Scotland derives its economic success could leave finances in "parlous state'".
  • Daily Express: Staging top sporting events has helped keep Britain’s economic recovery on course as shoppers continue to spend despite the prospect of higher interest rates.
  • Daily Express: Premier Oil is in a race against the weather to get a new North Sea rig up and running before winter.
  • Daily Express: Iron ore producer London Mining has reported widening first-half losses and warned that the deadly Ebola virus could hit its production in the second half of the year.
  • Financial Times: Kuoni, the Swiss tour operator, has been hit by political turmoil in some of its popular destinations and the impact of currency fluctuations on customers’ holiday plans - reducing its first-half gross profits by 9%.
  • Daily Mail: Petrol prices in Britain have fallen to a three-year low according to the AA with Asda the main catalyst after the supermarket giant capped prices earlier in the week.
  • Financial Times: Rusal has completed the restructuring of its $10 billion debt pile.
  • Daily Mail: Shares in Quindell plunged 12% yesterday despite a tripling of profits for the newsworthy insurance and telecoms outsourcing firm.
  • The Guardian: Hedge fund executives in London saw bonuses plummet last year, resulting in their pay packets being less than half of what they were 12 months ago; average bonus paid to senior members of London funds was £1,236,000 in 2012-13, but just £459,000 in 2013-14.
  • Financial Times: Gap is moving in to India’s fast growing market for Western-style apparel with plans to open 40 stores from 2015 - in the latest example of its aggressive expansion into emerging markets.
  • Financial Times: A regulatory probe into old life insurance policies – which caused insurers’ share prices to plummet when it was leaked to the press – could encourage companies to sell off chunks of their businesses, an industry leader has warned.
  • Financial Times: RTL Group, Europe’s largest broadcasting company, has warned that profits would be hit by an “alarming” tax on advertising being imposed in Hungary.
  • Financial Times: SoundCloud, the digital music platform, has responded to growing doubts about its ability to make a profit by introducing advertising and launching payments for some of its more popular artists.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Sell Quindell on cash outflow; Aim-listed insurance outsourcing group saw shares fall 12pc despite moves to reassure investors over cashflow.
  • Financial Times: Copper and zinc shrugged off weak Chinese manufacturing and trade data on Thursday, building on strong gains made in the previous 24 hours.
  • Daily Express: One of Britain’s biggest engineering groups, Costain, predicted more takeovers and mergers in the industry yesterday as it racked up record first-half orders of £3.2 billion.
  • The Daily Telegraph: Ryanair steps up bid for debt-ridden Cyprus Airways; Michael O'Leary is to travel to Cyprus to negotiate Ryanair's offer to take over the troubled flag carrier as he continues to eye flights beyond Europe.
  • The Daily Telegraph: Toms Shoes sells half the company to private equity; Bain Capital buys a 50% stake in the shoe business which donates a pair of shoes to children for every pair it sells.
  • Financial Times: ICAP, the world’s largest interdealer broker, has opened a coal derivatives trading desk in Singapore.
  • Daily Mail (Comment): Record-breaking Bank of America penalty hits home.
  • The Independent (Comment): It emerged this week that the Massachusetts-based Raytheon has won a drawn-out legal fight with the Home Office.

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