In German exists a distinction between you singular and you plural. Du - you singular Ihr - you plural (sometimes referred to as you all, or y'all)
- My friend, you (singular) are reading our newspaper.
Mein Freund, du liest unsere Zeitung
- My friends, y'all (plural) are reading our newspaper.
Meine Freunde, ihr lest unsere Zeitung.
Hope this helps.
No, "lest" is correct. "Lesen" is, of course, irregular and often when irregular verbs experience a vowel change in the present tense (here: e to ie), the vowel change only occurs in the "du" and "er/sie/es/man" form, whereas the other forms are generally regular with the same vowel as the infinitive:
- ich lese
- du liest
- er/sie/es/man liest
- wir lesen
- ihr lest
- Sie/sie lesen
You can see a similar thing with sehen (du siehst but ihr seht) and fahren (du fährst but ihr fahrt), among other verbs.