Evening Standard from London, Greater London, England • A53

evening andard Thursd 18 OcTO 2012 53 City Editor James Ashton buys $1.3095 down 0.23 cent £1 buys up 0.03 cent £1 buys $1.6122 down 0.28 cent Nikkei 225 CLOSE up 176.31 at 8982.86 Dow Jones Av CLOSE up 5.22 at 13,557.00 Business FTSE 100 up 10.49 at 5921.40 A cold-hearted way to freeze salaries City Spy sheds light on KPMG Page 57 continues to be a game- changer for John Donahoe, boss of eBay, whose auction site saw user numbers jump year-on- year in the third quarter Sun Life of Canada is fined £600,000 Sun Life of Canada was today fined £600,000 for not properly looking after one of its with-profit business funds with 114,000 policyholders and £1.2 billion of assets. Sun Life hedged the fund using derivatives in 2008 and 2009 without, in the view of the Financial Services Authority, taking independent advice as to whether that was the right thing to do. US inveStment bank morgan Stanley swung to a $1 billion (£620 million) loss over the third quarter but beat market hopes with earnings which rose on the back of strong revenues from its bond trading business. the net revenues rose to $7.6 billion, against $6.4 billion a year ago, although the figures excluded an accounting adjustment which caused the loss. Morgan Stanley posts £620m loss QUOTE OF THE DAY For more business news standard.co.uk/ business i riEF ShareS in BP rose today as traders became more convinced that it is closing in on a $28 billion (£17.32 billion) deal to sell its share of the russian tnK-BP joint venture.

board meets tomorrow with an offer on the table from rosneft, the russian oil giant. this is said to be a mixture of cash and shares which could give BP anything from a to stake in rosneft. Russian sell-o hope boosts BP Apple loses UK legal claim that Samsung copied iPad Bad loans at a record high in debt-hit banks ideon spanier russell Lynch Recovery hopes undermined by collapse in bank lending a dramatic collapse in lending to businesses and homeowners today cast new doubt over attempts to spur on the stuttering UK recovery with a credit revival. Bank of england figures revealed the flow of loans to businesses shrank by £2.2 billion in august, while the council of mortgage Lenders also reported a September for home loans. the latest bleak news underlines the urgency of Bank of england Governor Sir mervyn efforts to boost lending via the new, £80 billion Funding for Lending scheme, launched in august.

threadneedle latest trends in Lending report showed overall business lending shrank 3.1% in the year to august, with loans to smaller firms shrinking since June last year. Smaller players to report they were unable to obtain although lenders claim demand for loans is muted. Stewart Baird, head of small business venture funding company Stone ventures, said: to business has dropped off a cliff over the past three months. the lack of appetite among lenders to fund growth in the economy, to back business, is now startling. When it comes to supporting business, banks are absurdly risk-averse.

bordering on a adam marshall, the British chamber of policy director, added: numbers reflect underlying uncertainty across the economy. however, they also suggest that the banking sector is continuing to deleverage, that the cost of credit has not come down despite repeated interventions, and that there are still many businesses out there who say they cannot access the credit they the latest gloom came as the cmL revealed a slide in mortgage lending to £11.6 billion in September, which it called a lacklustre Gross lending including remortgag ing and loans for house purchase but not repayments is down by on last year. the chief economist, Bob Pannell, said: of the reduction appears to reflect weaker house-purchase activity compared with august. this ties in with the weaker house-purchase approvals data reported by the Bank of england for the past three minutes of the Bank of latest policy meeting yesterday claimed that the FLS would take longer to have an impact on business lending although it was by early signs of lower mortgage rates. russell Lynch the bad loans in disastrously debt-laden banks hit an all-time high of billion (£144 billion) in august, shocking new figures revealed today.

more than of all loans held by the tottering banks are now non-performing, as Spaniards give up on their mortgages amid soaring unemployment. banks counting the cost of a reckless boom in property lending are preparing to receive first funds from a billion bailout, although prime minister mariano rajoy is struggling to avoid a full-scale international rescue. the country is also setting up a to siphon rotten property assets off balance sheets to help turn the recession- blighted economy around. the country at least saw an easing in its borrowing costs today as it raised billion in benchmark 10-year debt. the latest auction came as leaders met in Brussels to thrash out plans for a new banking supervisor to help shore up confidence in the fragile eurozone.

Spain paid on average 5.46% to borrow for 10 years, cheaper than the 5.67% charged by the markets a month ago in a similar debt auction. the funding costs have been eased by expectations that the european central Bank will step in to buy up its debt, while ratings agency also held back from slashing its debt to junk status this week. AppLe today suffered a major blow in a London courtroom as it lost its claim that archrival Galaxy Tab had copied the ipad. The Court of Appeal upheld a judgement that despite some similarities, tablet did not infringe design, in part because its products were as as the ipad. Apple was ordered to run advertisements in selected British newspapers and on its own website to the damaging that product was a copy.

The court said the ipad giant must keep the notice on its website for six months. Samsung said: continue to believe that Apple was not the first to design a tablet with a rectangular shape and rounded corners and that the origins of registered design features can be found in numerous examples of prior Apple, which is to launch a mini- ipad next week, did not comment. Rivals clash: the Galaxy Tab (front) is not a copy of the iPad (rear), the Court of Appeal ruled High Street sales show surprise jump BRITAIN is shopping its way out of recession with a surprise jump in High Street sales last month, according to official figures today. The 0.6% rise in sales volumes, after an August dip blamed on the Olympics, was driven by a jump for clothing and shoes as shoppers stocked up on autumnwear and school uniforms. The better news comes ahead of growth figures next week expected to show the UK pulling out of its double dip between July and September.

Shehan Mohamed, senior economist at the Centre for Economics and Business Research, said: quarter retail spending volumes are up compared to the previous quarter the largest increase for two Urgency: Bank boss Sir Mervyn King.