Bank claims, Arctic drilling, and a caffeinated cure

The daily briefing “FirstFT” from the Financial Times.

Global banks are facing billions of pounds-worth of civil claims in London and Asia over the rigging of currency markets, following a landmark legal settlement in New York involving Barclays, Goldman Sachs, HSBC and other companies.

Lawyers warned that the banks’ $2bn settlement with thousands of investors affected by rate-rigging could open the floodgates for an even greater number of claims in London, the largest forex trading hub in the world. (FT)

In the news:

Green light for Arctic drilling

Much to the chagrin of environmentalists, Shell has been given the go-ahead by US regulators to start drilling into possible oil reserves in the Arctic. The company, which has spent 10 years and about $7bn exploring potential wells in the region, is hoping it can recover 4.3bn barrels of oil from the prospect. (FT)

Amazon on the defensive

Founder Jeff Bezos is defending the online retailer from a damning New York Times report on the company’s management style and brutal workplace culture. Mr Bezos sent a memo to all “Amazonians” saying he would not tolerate “the shockingly callous management practices” described in the article , which depicted the ecommerce group as a place where employees regularly weep and colleagues compete to criticise each other to their bosses. (FT, NYT)

Bangkok blast kills 22 

Thailand is reeling from its deadliest violence since last year’s military coup, after an explosion in the capital’s main shopping zone. The country’s defence minister said the bomb deliberately targeted foreigners to harm the tourism industry and the economy. (FT, BBC)

Norway oil fund bounces Asian companies

In its first use of a new power, the country’s central bank said the world’s largest sovereign wealth fund should not be able to invest in Daewoo International and Posco of South Korea and Genting and IJM of Malaysia because of concerns over severe environmental damage at Indonesian palm oil plantations. (FT)

Runner set to walk out of jail

Oscar Pistorius is to be released from prison this week after serving 10 months of a five-year sentence for shooting dead his girlfriend Reeva Steenkamp. His release on probation, however, is likely to be clouded by a push from prosecutors to have his conviction reviewed and converted to murder. (BBC)

It’s a big day for:

Mahinda Rajapaksa, who is poised for defeat in Sri Lanka’s parliamentary elections. The country’s former president was hoping for a political comeback just months after he was toppled. (FT)

Chinese property

Prices fell for an 11th straight month in July, but the pace of decline was itsslowest in 2015. (fastFT)

Food for thought:

Seeking a soft touch

About one in four prescriptions for antibiotics in England are probably unnecessary, according to a leading health official, who says that patients are deliberately looking for “soft-touch” doctors who will acquiesce to their demands for medicines. And the resulting bacterial resistance to such drugs is now threatening the “whole basis of medicine”. (The Guardian)

The power of the book

A new book on water safety might literally have the power to make water safe for hundreds of millions of people worldwide. “The drinkable book” can eliminate more than 99 per cent of bacteria by filtering dirty water through its copper and silver-particle encrusted pages, according to new research. (Quartz)

Pacifist Japan’s plan to arm the world

Prime Minister Shinzo Abe hopes defence exports will boost the country’s industrial base and counter China’s rise. (FT)

Reclusive trader or criminal mastermind?

At a recent hearing, Navinder Singh Sarao exclaimed: “I’ve not done anything wrong apart from being good at my job. How is this allowed to go on, man? I’ve done nothing wrong!” Is the UK man facing US charges over the “flash crash” all he is cracked up to be? (FT)

A caffeinated cure

Colon cancer patients who indulge in a few cups of coffee every day are more likely to survive their cancer and less likely to suffer a recurrence, according to doctors in the US. A study of nearly 1,000 patients found that the coffee consumers were 33 per cent less likely to die of their cancer or other illnesses. (NBC)

Video of the day:

China lands another blow

Emerging market bonds, stocks and currencies have come under renewed pressure after China’s modest renminbi devaluation. Robin Wigglesworth, US markets editor, does not see much cause for optimism. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: Pedestrians walk inside a train station in Tokyo. REUTERS/Yuriko Nakao.