Friday Papers: New York files suits against BofA and Merrill - other news

Financial Times

* New York files suits against BofA and Merrill alleging that the state’s pensioners suffered losses because of both companies’ actions during the financial crisis.

* The FTSE All-World equity index has reversed an early decline and is now up 1.9 per cent, while the FTSE 100 in London was up 1.9 per cent; the S&P 500 index in New York has closed up 2.3 per cent; the Nikkei 225 fell 0.6 per cent.

* BP’s need to conserve money for compensation payments was the key factor in second-quarter UK dividend payments falling an estimated 8 per cent year on year to £15bn, according to Capita Registrars.

* The Asset Protection Agency, which is responsible for managing a £230bn pool of RBS's most risky loans has criticised the bank’s handling of these assets.

* Development Securities, the property developer and investor, will raise £94m ($144m) in a fully underwritten placing and rights issue.

* The SEC said companies selling securities backed by loans would have six months of breathing room to comply with new regulations.

* Hungary PM rejects new IMF deal and austerity.

* Spain postpones or cancels 231 public works projects worth €6.4bn as part of an austerity drive.

* Trichet calls for public spending cuts and tax increases across the industrialised world as evidence of a healthy European recovery mounts.

* Both manufacturing and services output in the eurozone grew faster than expected in July, according to the latest purchasing managers’ indices.

* Motorola has named an alleged spy as a co-defendent in a lawsuit against China’s Huawei telecoms group over the alleged theft of trade secrets.