In brief: King queries US regulator’s approach, motorists get extra fuel at pumps, Post Office to offer mortgages and the price of a cuppa could rise.
FINANCIAL TIMES
King questions StanChart probe
By Tom Burgis, Patrick Jenkins and Jim Pickard in London
The governor of the Bank of England has questioned the approach of the US regulator that accused Standard Chartered of breaching sanctions by hiding $250bn of transactions linked to Iran.
Speaking to reporters at a quarterly briefing, Sir Mervyn King appeared critical of New York state’s Department of Financial Services, which broke ranks with other regulators probing StanChart’s alleged Iranian dealings to go public with a damning report on Monday.
THE TIMES
Standard Chartered’s chief takes fight to his accusers
By David Robertson and Miles Costello
Standard Chartered launched its fightback against explosive sanctions-busting allegations last night when its chief executive branded a US regulator’s claims “factually inaccurate”.
Speaking publicly for the first time since it was accused of improper business with Iran on Monday, Peter Sands vowed to defend the bank’s reputation at a meeting with regulators in New York next week.
SKY NEWS
Bank Of England Lowers Growth Forecast For UK
The Bank of England has lowered its UK growth forecast and said the economy will remain flat for the rest of the year.
The new assessment comes after bank governor Sir Mervyn King dropped the forecast from 0.8% three months ago and 2% a year ago.
He said: "The overall outlook for growth is weaker than the outlook in May."
THE SUN
Thank EU for the free fuel
By Rhodri Phillips
Faulty garage pumps are giving many motorists extra fuel for free when they fill up, the AA said last night.
They can get up to 4.4 per cent more — worth 6p for every litre they put in the tank.
The bonus petrol — a welcome gift with fuel prices near an all-time high — is due to a problem with EU moves to standardise forecourt pumps.
BBC.CO.UK
News Corp registers $1.6bn fourth-quarter loss
Rupert Murdoch's News Corp has swung to a loss partly due to the weakness of its publishing business, which includes newspapers like the Times and the Sun.
The fourth quarter net loss was $1.6bn (£1bn) compared with a net income of $683m in the same period last year.
The loss included a $2.9bn pre-tax restructuring charge.
THE INDEPENDENT
Fraud inquiry threat to Barclays over Arab bailout
By James Moore
City watchdogs are collaborating with the Serious Fraud Office (SFO) as part of an investigation into Barclays' bailout by the Middle East, The Independent has learnt. This could lead to an investigation being launched by the fraud policing agency.
Barclays announced, when it released its interim results at the end of last month, that its finance director Chris Lucas was one of four "current and former" employees under investigation by the Financial Services Authority (FSA).
The inquiry is focused on the disclosures of commission payments made by Barclays to secure the bail-out funds which were raised in two tranches in 2008.
THE TELEGRAPH
Euro founder admits some nations may be forced to leave
By Matthew Sparkes
Otmar Issing, a former European Central Bank chief economist, warned that the eurozone could be heading towards fracture in a book called How we save the euro and strengthen Europe published this week .
"Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen," said Mr Issing in the book, which is written as a conversation between an economist and a journalist.
DAILY EXPRESS
Mortgage joy for millions
By Macer Hall
Homeowners were last night given hope that mortgage rates will stay at a record low for the next three years – and could even be cut further within months.
City experts forecast that the Bank of England base lending rate will not rise above 0.5 per cent until mid-2015.
FINANCIAL TIMES
Post Office to sell mortgages in branches
By Tanya Powley
The Post Office is to rival high street banks by offering mortgages from its branches, as consumer confidence in the UK’s biggest lenders has been damaged by high-profile scandals. From Thursday, mortgage specialists will be introduced in five of the larger branches: Birmingham, Solihull, Walsall, Luton and Norwich.
Over the course of the next year, mortgage specialists will be installed at hundreds of the Post Office’s 11,500 branches as it looks to become a “genuine alternative” to banks and building societies. Thousands of branches are already being restyled with government funding as “premier” post offices.
THE SCOTSMAN
Man United float seeks to make most of global brand
By Gareth Mackie
Manchester United, which is preparing to kick-off its flotation in New York tomorrow, is due to price its shares tonight amid signs that enthusiasm for the deal is growing.
The club is on the last leg of a two-week marketing push and sources said that the initial public offering (IPO) is already oversubscribed as US investors proved receptive to the float.
THE GUARDIAN
Oil and petrol price boom looks set to continue
By Terry Macalister
Brent crude rose $1 at one stage on Wednesday to hit $113 a barrel, suggesting high prices for oil (and petrol) are unlikely to end soon.
The increase was triggered by weekly data from the US government showing stock levels at American refineries continue to decline.
Oil buyers believe pessimistic economic forecasts from the Bank of England and others will encourage a release of more public money into the system via quantitative easing. This will drive economic growth and fuel demand.
DAILY MAIL
Price of a cuppa leaps to new high as poor crops caused by rain and frost strain tea supplies
By Sean Poulter
The cost of a cuppa is set to rise by 15 per cent after the international price of tea surged to its highest level in two and a half years.
The wholesale price of the highest quality black tea – known as broken pekoe 1 or BP1 – has leapt by 41 per cent since the beginning of the year to above 4 dollars a kilo.
