Friday Papers: Banks prepare to swap £85 billion of mortgage-backed assets for T-bills -- other news

* Dow advances 94 points and Nasdaq gains 34 points

* US Federal Reserve chairman Ben Bernanke tells financial firms to raise capital and toughen risk management

* The UK's biggest banks are preparing to swap £80-90 billion of mortgage-backed assets for Treasury bills with the Bank of England - nearly twice as much as the central bank originally envisaged

* US jobless claims rise by 6,000 to 371,000 in May 10 week; continuing claims highest in four years

* UK Philadelphia Fed May manufacturing index rises to minus 15.6p vs minus 20 expected

* US April industrial production falls 0.7%; capacity utilisation 79.7%

* US May Empire State manufacturing index falls to minus 3.2 vs no change expected

* US March net foreign securities purchases minus $48.2 billion

* US homebuilders May index falls to 19 vs slight increase expected

* Prospect oif cheaper loans hit as inflation forecast sends Libor soaring

* Peter Spencer, chief economist at Ernst & Young ITEM Club warns that the Bank of England will 'crucify' consumers unless the Treasury lets it abandon its inflation target

* A cocktail of fear and greed by banks led to financial chaos, according to Hector Sants, chief executive of the Financial Services Authority

* Government data confirms a sharp fall in the number of houses being built

* MJ Gleeson sees in-line full-year; to take £4.1 million charge on legal settlement with Devonshire Green; difficult market conditions causing slowdown in completions

* Crest Nicholson sheds 10% of staff as gloom deepens

* Ministry of Defence receives go-ahead to free up funds by breaking one of its own accounting rules

* Ofwat calls for water market to be liberalised

* Rio Tinto slams China over increasingly aggressive negotiating tactics

* Staff braced for thousands of job cuts at Thomson Reuters in the coming weeks -- Independent

* Gordon Brown signals retreat on the 42-day detention plan

* Tesco wins court battle over Dobbies Garden Centres