PRESS DIGEST- Financial Times - Feb 5

Tue Feb 4, 2014 8:36pm EST

Feb 5 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines

FOREX CLAIMS 'AS BAD AS LIBOR', SAYS FCA

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MORGAN STANLEY RESTATES EARNINGS ON $1.3 BLN LOAN SETTLEMENT

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MICROSOFT BANKS ON THE CLOUD UNDER NADELLA

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FORMER RBS CHIEF STEPHEN HESTER TO LEAD RSA

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MICHAEL KORS CONTINUES TO OUTSHINE LUXURY RIVALS

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Overview

The chief executive of Britain's financial watchdog warned on Tuesday that the global investigation into the manipulation of the foreign exchange market was proving as serious as the Libor rigging probe, which has resulted in more than $6 billion of fines for banks.

Morgan Stanley has been forced to restate its fourth-quarter earnings after saying it would pay $1.3 billion to the U.S. regulator for Fannie Mae and Freddie Mac to settle a lawsuit related to the sale of mortgage-backed securities.

Microsoft has named 46-year-old India native Satya Nadella as its third chief executive in the company's 39-year history, ending a long-running search that had brought calls for an outsider who could revive the aging technology pioneer.

Stephen Hester, a former Royal Bank of Scotland boss, has been appointed chief executive of scandal-hit insurer RSA with immediate effect.

Shares in Michael Kors rose nearly 21 percent after the retailer raised its sales and profit forecasts for the year as it reported third-quarter sales in Europe had more than doubled.