Newspaper of the Year

WEDNESDAY 16 MAY 2018 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00

The new Tito Facing up to China Smart Money

Serbia’s president aims to steer the The west has become its own worst Investors are cooling on Dividend
nation into the EU — BIG READ, PAGE 9 enemy — MARTIN WOLF, PAGE 11 Aristocrats — JOHN AUTHERS, PAGE 13

Rough ride Briefing

Erdogan sends i Windrush removals number ‘not final’
Immigration officials believe they have wrongly
lira tumbling removed from the UK as many as 63 members of the
Windrush generation of Caribbean migrants, but the
number affected could rise still further.— PAGE 2
Protesters opposed to Turkey’s Presi-
dent Recep Tayyip Erdogan clash with i China and US separated by trade chasm
police in Whitehall before his meeting The US and China are “still very far apart” regarding
with Theresa May, prime minister, in trade, technology and market access, the US
Downing Street yesterday. ambassador to China said before a Chinese official’s
Mr Erdogan sparked a fresh sell-off of Washington visit.— PAGE 4; MARTIN WOLF, PAGE 11
the Turkish lira when he said in a televi-
sion interview that he intended to take i EasyJet eyes move into holiday market
greater control over monetary policy EasyJet is to expand its holiday
after the snap general election he has business as new chief Johan
called for June 24. Lundgren announces strategic
The lira fell to its lowest level against changes. Mr Lundgren aims to
the dollar at one point yesterday, ending compete with Tui and Thomas
the London trading day 2 per cent Cook.— PAGE 18; LEX, PAGE 12
weaker at 4.4530 per dollar. The fall in
the lira led a broader drop in emerging i Business sounds productivity alarm call
market currencies. Corporate leaders have warned that declining
Full story page 7 productivity growth should be “a wake-up call” for
Investors lose appetite page 25 Rob Pinney/LNP
the UK, after new official data showed a sharp drop
in the first three months of the year.— PAGE 2

i League and Five Star at odds over EU

MPs want big four accountancies

Italy’s far-right League pressed the Five Star
Movement to embrace tougher positions towards
the EU, as a split over Europe between the populist
parties hits talks to form a government.— PAGE 4

referred for break-up over Carillion

i Landsec loss spurs warning on Brexit
The UK’s biggest listed property group has reported
its first annual loss since the financial crisis and
warned that it expects “subdued” markets before
Britain leaves the EU.— REPORT & LOMBARD, PAGE 18

i Airbus ruling paves way for US tariffs

3 Report derides ‘cosy club’ 3 Officials and board blamed 3 ‘Feeble’ regulators exposed
GILL PLIMMER
MPs have demanded that the big four
accountancy firms be referred to
competition authorities for potential
break-up following the collapse of gov-
ernment contractor Carillion, calling
them a “cosy club incapable of provid-
ing the degree of independent challenge
needed”.
The recommendation by members of
two powerful parliamentary commit-
tees was contained in a damning 100-
page report on Carillion’s failure, which
also accused the government, regula-
tors and Carillion board members of
failing in their responsibilities, often
because they acted “entirely in line with
their own personal incentives”.
Carillion, which went into liquidation
in January with liabilities of £7bn and
just £29m in cash, was “a giant and
unsustainable time bomb”, the report
found. Its failure, one of the biggest in
recent British history, exposed “sys-
temic flaws” in corporate Britain and its
“toothless” and “feeble” regulators.
Although Deloitte was Carillion’s sole
internal auditor, all three of the other
big four did work for the group, with
KPMG serving as external auditor, EY
providing turnround advice and PwC
advising the company, its pension
schemes and the government.
“It is a parasitical relationship which
sees the auditors prosper, regardless of
what happens to the companies,
employees and investors who rely on
their scrutiny,” said Rachel Reeves, who
chairs the business select committee.
The US has won the right to impose punitive tariffs
on EU imports after the WTO handed it a victory in
the first of two decisions that could end a 14-year
The report called on the government threatening the jobs of 19,500 employ- battle over illegal aid to Boeing and Airbus.— PAGE 13
to refer KPMG, EY, PwC and Deloitte to ees in the UK and raising questions over
the Competition and Markets Authority the projects Carillion was working on,
for potential break-up or for splitting including the HS2 rail line. It also raised Datawatch
audit functions from non-audit services. doubts over government reliance on
The recommendation comes amid outsourcing for everything from health-
calls from watchdogs and policymakers ‘Giant and care to prisons. Emerging from crisis The ratio of
to consider a break-up. The head of the unsustainable The report was scathing of the FRC Change in investment to GDP ratio investment to
Financial Reporting Council, the time bomb’: and the Pensions Regulator, which were (2007-17), percentage points gross domestic
product fell in
accountancy regulator, and influential the contractor too “passive” and require “cultural EU average
24 of the 28 EU
MPs such as Frank Field have argued for went into change”, as well as more powers. Sweden states in the years
the need for greater competition follow- liquidation in The Insolvency Service should also Austria
Germany 2007-17. Only in
ing a series of accounting scandals. January with consider whether Carillon’s former
France Austria, Sweden
Andrew Tyrie, a former Conservative liabilities of directors, including Richard Howson, UK and Germany did
MP who has been named the new head £7bn and just chief executive, Philip Green, chairman, Italy investment rise as
the CMA, has said he will look at the £29m in cash and Richard Adams, finance director, Spain a share of GDP.
market dominance of the firms. breached their duties under the Compa- Greece Greece and Spain
The collapse of Britain’s second- nies Act and ought to be disqualified. -15 -10 -5 0 saw some of
largest construction company caused Lex page 12 Source: Eurostat the biggest falls
political and economic shockwaves, Scathing report page 19

Vodafone’s Colao to step down as deals

TSB snubbed Lloyds help
in fixing £50m IT debacle
TSB’s rejection of help from Lloyds, its
former owner, in the midst of an IT
meltdown that locked hundreds of
thousands of customers out of their
accounts, showed the bank had failed
to grasp the gravity of the problem
and had been ‘hoping to get away with
it’, says John Mann, of the Treasury
select committee. Lloyds offered to
help hours into a crisis now set to cost
TSB £50m in waived fees and
compensation.
Report i PAGE 18
complete ‘reshaping’ of telecoms group
NIC FILDES
TELECOMS CORRESPONDENT
Vittorio Colao, who helped build
Vodafone into one of the world’s largest
telecommunications groups, will step
down as chief executive in October
after a decade at the helm.
Nick Read, chief financial officer, has
been promoted to the top job. He joined
Vodafone in 2001 and, before becoming
CFO in 2014, led the UK business and
was responsible for Africa, Asia and the
Middle East.
Vodafone shares opened down nearly
4 per cent after the announcement yes-
terday and stayed flat to close at 198p.
Mr Colao’s decision comes only days
after the company sealed an €18bn
takeover of Liberty Global’s German
and eastern European cable companies,
the biggest takeover of his tenure. It also
comes ahead of the merger of its strug-
gling Indian business with Idea Cellular,
a deal that is expected to close in June.
The 56-year-old Italian said the time
was right to leave because much of
Vodafone’s “reshaping” was complete
after the recent deals. “The chapter
Vodafone is starting to write is com-
pletely different,” he said. “After India,
after Liberty, this is a new story that will
take five years to be written.”
Gerard Kleisterlee, chairman, said:
“He has been an exemplary leader and
strategic visionary who has overseen a
dramatic transformation of Vodafone.”
Dhananjay Mirchandani, a Bernstein
analyst, said Mr Colao’s exit was not a
surprise. “With the Liberty deal
announced and India set to close, he
leaves behind a strategically well-
positioned portfolio for his successor.”
The announcement accompanied
full-year results from Vodafone that
showed revenue dipping 2.2 per cent to
€46.6bn. Service revenue rose 1.6 per
cent driven by broadband growth.
Earnings before interest, taxation,
depreciation and amortisation grew
2 per cent to €15bn, beating its forecast.
Free cash flow was €5.6bn, hitting a
promise to exceed €5bn.
Mr Colao said his departure should
not overshadow a “strong financial per-
formance” with Vodafone beating
expectations it had upgraded in the
year. Vodafone’s outlook for ebitda
growth of between 1 per cent and 5 per
cent for the year to March 2019 was cau-
tious, signalling a slight slowdown.
That anticipates a tougher perform-
ance in Italy where low-cost new entrant
Iliad is due to launch and a softer out-
look in Spain.
Lombard page 18

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2 ★ FINANCIAL TIMES Wednesday 16 May 2018

NATIONAL

Migration scandal Prison inspection

Windrush removals ‘not final number’ Watchdog

fears suicides
Javid tells MPs 63 cases Mr Javid made the revelation as he tee last week, Hugh Ind, Home Office Of the 63, some 32 were deported as before 1973 are affected. Mr Javid was
link to poor
have so far been found
was giving evidence to the Commons
home affairs committee about the treat-
director-general of immigration enfor-
cement, said that no more than “a hand-
foreign national offenders, while the
remaining 31 were people who either
unable to tell MPs how many of the Win-
drush generation had been wrongly
jail conditions
but that inquiry continues ment of the Windrush generation — ful” of people had been incorrectly for- left of their own accord after being told detained under threat of removal. He
Commonwealth citizens who arrived in ced to leave the country. they had no right to remain or were said he had made it a priority to discover
ROBERT WRIGHT the UK before 1973. Home Office officials have been look- detained and forcibly removed. how many had been removed from the ROBERT WRIGHT
PUBLIC POLICY CORRESPONDENT Many have faced harassment from ing through records of 8,000 removals He added that the number could rise country. He also admitted that the “hos-
A spate of suicides at Nottingham jail
Home Office officials because they from the UK to the Caribbean — depor- further. “I would say it’s not the final tile environment” policy towards peo-
may have been the result of persistent
Immigration officials believe they have lacked documents to prove their right to tations of criminals and administrative number at the moment because the ple over their immigration status might
poor conditions, the prisons watchdog
wrongly removed as many as 63 mem- remain in the UK. removals of people over their immigra- work is continuing,” Mr Javid said. have wrongly affected groups other
has claimed as it released “one of the
bers of the Windrush generation of Car- Mr Javid’s predecessor, Amber Rudd, tion status — to assess how many were The home secretary also made it clear than the Windrush cases. Ms Rudd had
most disturbing inspection reports in
ibbean migrants from the UK, and the said last month that the department was from the Windrush generation. that the department was examining insisted the policy was correct and that
recent years”.
number affected could rise still further, not aware of any Windrush migrants “We have found 63 cases where indi- only the records of people from the Car- the problem arose because of the failure
home secretary Sajid Javid admitted who had been wrongly removed from viduals could have entered the UK ibbean, although some citizens of other to provide the Windrush generation Peter Clarke, chief inspector of prisons,
yesterday. the UK. Giving evidence to the commit- before 1973,” Mr Javid told MPs. Commonwealth countries who arrived with proper documents. said in a report published yesterday that
eight prisoners appeared to have killed
themselves between February 2016 and
January 2018 at Nottingham jail. There
Worker output was a ninth apparent suicide at the
prison earlier this year.

Drop in productivity a ‘wake-up call’, warns business “For too long prisoners have been
held in a dangerous, disrespectful, drug-
ridden jail.
“My fear, which may prove to be
unfounded, is that some could face it no
GAVIN JACKSON
longer and took their own lives,” he said.
He added that inquests would be held to
Declining productivity should be “a establish the circumstances of the
wake-up call” for the UK, business deaths.
leaders warned after data showed that Mr Clarke said safety at the jail, which
productivity dropped sharply during houses more than 1,000 male prisoners,
the first three months of this year. had not improved despite repeated
warnings from the inspectorate.
Output per hour worked dropped by 0.5 Following an inspection in January,
per cent during the first quarter as the prison again received a “poor” rat-
hours worked rose without a matching ing for safety — the worst category — just
increase in economic growth, according as it had following previous inspections
to data from the Office for National Sta- in 2014 and 2016.
tistics yesterday. The conditions that inspectors dis-
Other labour market data from the covered during January’s inspection
ONS pointed to rises in wage growth and prompted Mr Clarke for the first time to
employment in the first quarter. use a new “urgent notification” proce-
But productivity growth has been the dure to warn David Gauke, the justice
missing piece of the recovery since the secretary, about the prison’s particu-
financial crisis and is thought to be the larly poor conditions.
best guarantor of long-term improve- The urgent notification was published
ments in living standards. at the same time as the inspectorate’s
“This decrease in productivity should report on Liverpool prison, where
be a wake-up call for all of us,” said Tony inspectors said they saw the worst con-
Danker, chief executive of Be the Busi- ditions they had ever encountered.
ness, a group of business leaders trying Inspection reports in the past two
to tackle lacklustre productivity years have shown a sharp deterioration
growth. in conditions in many prisons in Eng-
“The strong productivity figures at land and Wales as a result of overcrowd-
the end of 2017 were more the result of a The recovery in productivity Wage growth is starting to edge up The BoE may wait for real wages to rise ing, inadequate staffing by inexperi-
temporary dip in hours worked, and stalled in the first quarter Annual % change in average weekly earnings further before increasing interest rates enced staff and the ready supply of ille-
less about real increases in output,” he Output per hour, % growth (3-month average) Growth in average earnings (excluding bonuses) gal drugs.
said. from previous quarter adjusted for inflation (annual % change) Mr Clarke said his latest visit to Not-
The Office for Budget Responsibility, 1.0 3.0 tingham had produced “yet again” a
which revised down its productivity 0.8 2.0 “very poor inspection”.
growth forecasts last year, had said that 2.5 “The record of failure, as set out in
the growth spurt at the end of last year 0.6 this report, cannot be allowed to con-
2.0 1.0
was probably due to volatile measures 0.4 tinue,” he said.
of hours worked rather than any change 0.2 1.5 Elizabeth Moody, the prisons and pro-
in the post-crisis trend. 0 bation ombudsman, echoed Mr Clarke’s
0 Total pay
Despite the drop in productivity, Regular pay, 1.0 concerns, saying he was right to high-
workers enjoyed the fastest wage -0.2 excluding -1.0 light the apparent inability of the prison
growth since 2015 during the first three bonuses 0.5 to learn lessons.
-0.4
months of 2018, according to some -0.6 0 -2.0 “I agree that until it can demonstrate
measures. 2016 2017 Q1 2014 15 16 17 18 2013 14 15 16 17 18 progress in this critical area the risk of
Average weekly earnings excluding Source: ONS 2018 future deaths will remain high,” she
bonuses were 2.9 per cent higher in the said.
first quarter than a year earlier. This Michael Spurr, chief executive of HM
means real wages grew by 0.4 per cent Laid back: way to boost workers’ pay packets is to Employment figures were also mixed. ‘Workers This was driven by a 9.1 per cent drop Prison Service, said the service was pub-
over the past year, the ONS said. workers take increase productivity.” The employment rate rose to 75.6 per in the number of workers from the eight lishing a “comprehensive plan” setting
“Growth in real wages means that time out Other measures of wage growth were cent during the first quarter of 2018, the will eastern European accession countries, out practical actions it was taking to
people are starting to feel the benefit of to enjoy the weaker. Total pay, which includes highest level since the ONS began keep- welcome including Poland, over the past year. improve conditions at Nottingham
more money in their pockets; another sunshine in a bonuses, was 2.6 per cent higher than a ing comparable records in 1971. “The growth in employment is still prison.
turning point as we build a stronger, garden next to year ago, matching inflation. This was a This meant that during the first three the slight being driven by UK nationals, with a
fairer economy,” said Philip Hammond, St Paul’s fall from a 2.8 per cent rate of growth in months of the year there were 396,000 boost in slight drop over the past year in the
chancellor. Cathedral the three months to the end of February. more in employment than a year earlier, number of foreign workers,” said Mr
Real wages fell last year, with a fall in this week “Growth in total pay remains in line mostly because of a 256,000 increase in wages, but Hughes.
the value of the pound after the EU ref- Henry Nicholls /Reuters
with inflation, meaning real earnings full-time jobs. the rise is “It’s important to remember, though,
erendum pushing prices up faster than are flat on the year,” said Matt Hughes, However, it was not enough to reduce that this isn’t a measure of migration,”
levels of pay. senior ONS statistician. the unemployment rate from 4.2 per nothing to he added.
“Workers will welcome the slight The mixed picture of wage growth is cent, the same as during the three write home Official migration figures, which also
boost in wages, the first they’ve seen for likely to reinforce the judgment of the months to the end of February. include students and those coming to
more than a year, but the rise is nothing Bank of England’s rate-setting commit- The rise in the number of employed about’ join their families, have pointed to a
to write home about,” said Seamus tee members that they should wait for was driven entirely by UK nationals, decline in the number of EU citizens
Nevin, head of policy research at the more data showing an acceleration in with the number of EU nationals coming to the UK since the referendum Safety at Nottingham had not
Institute of Directors. “The only reliable wage growth before raising rates. in employment falling by 1.2 per cent. vote in June 2016. improved despite repeated warnings

Westminster Money laundering

MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription May to publish Brexit white EU split raises risk of financial
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
paper before crucial summit crime, agencies tell Treasury
Trump vs the Valley A Five Star plan? Dear Don...
Tech titans need to minimise Italy’s populists are trying to woo May’s first stab at the break-up
political risk — GILLIAN TETT, PAGE 13 the poor — BIG READ, PAGE 11 letter — ROBERT SHRIMSLEY, PAGE 12

HMRC warns Lloyd’s of Brussels Insurance market

to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

customs risks THE END

i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

the pattern of negotiations so far. banks and subsidiaries each year “with
dealmaking, as US companies ride a Trump-fuelled HOW DRIVERLESS

being swamped
equity market rally to hunt for bargains across the

OF THE
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

i Report outlines longer NHS waiting times

A report on how the health service can survive
TECHNOLOGY IS
CHANGING AN
GEORGE PARKER — POLITICAL EDITOR CAROLINE BINHAM
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

The white paper will cover issues a significant threat being posed by the
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting — LIFE & ARTS

Theresa May has announced plans to Brexit could make the UK more vulner-
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
A survey has revealed that a
How To Spend It
including customs, regulatory diver- criminal exploitation of accounting and
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. “If running almost one tower a week

publish a Brexit white paper ahead of a able to economic crime as it strikes

A computer system acquired to collect our own customs system is proving during 2016.— PAGE 4
duties and clear imports into the UK much harder than we anticipated, that
may not be able to handle the huge ought to have an impact on how we i Tillerson fails to ease Turkey tensions
surge in workload expected once Britain press for certain options in Brussels.” The US secretary of state has failed to reconcile

fresh tax probe

gence and financial services. It will also legal professionals involved with trust
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland

European Council meeting next deals with countries with a heightened

March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

examine a future security relationship. and company provision”.

Setting up a digital customs system
has been at the heart of Whitehall’s
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
CDS, indicating it would be delivered on
time. But last month, it wrote to the i HSBC woos transgender customers
committee saying the programme had TheRALPH
bank hasATKINSunveiled
— ZURICHa range of gender-neutral it followed “a strategy offull client tax
been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

FINANCIAL TIMES
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
month, setting out for the first time in corruption risk, the Treasury has been
apparent in a number ofkey areas”. Credit
needs Suisse hascustomers.
of transgender been targeted by
— PAGE 20 HM Revenue & Customs said it had
HMRC said last night: “[CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
and it will be able to support frictionless back Switzerland’s attempts to clean up dering by “a global financial institution
Datawatch

It will feed into negotiations with So-called politically exposed persons,

Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.”
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
were contacted
Highlighted attack byOthers
Recent

Reproduction of the contents of this newspaper in

The Swiss bank said yesterday it was tax authority added: “The international
reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.”
local officials
The lure of the exotic
Robin Lane Fox on the flair

detail what Britain is seeking from its warned.

“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
to hit 300m.
The revelations about the system,
HMRC’s letters to the select commit-
tee, which will be published today, pro- AFP Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint- of foreign flora — HOUSE & HOME
parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

Number One Southwark Bridge, London SE1 9HL

called Customs Declaration Service, are vide no explanation for the rating Lloyd’s of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem-

any manner is not permitted without the publisher’s

likely to throw a sharper spotlight on
while Australia’s revenue department and Nice, and the while French officials said their
probe;
change, but some MPs believe it was sels over “five or six” other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed “several

Brussels on a political declaration on the particularly from Pakistan, Nigeria and

whether Whitehall can implement a
host of regulatory regimes — in areas
ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
homes for the industry. But Paris bombings — have
Mr Nelson said the city won on The inquiries threaten to undermine thousand” bank accounts opened in
bucked the trend
its transport links, talent pool efforts by the country’s banking sector Switzerland and not declared to French
of generally low
and “extremely good regula- to overhaul business models and ensure tax authorities.
fatalities from
tory reputation”. customers meet international tax The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in

future relationship with the EU.

requirements following a US-led clamp- western Europesaid it was “astonished at the way this
Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14
essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.

prior consent.
down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland”. It
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

Published by: The Financial Times
banker loses job over WhatsApp boast
future UK-EU relationship, which is UK business and trade policy, including Russia, overwhelmingly chose London
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
Limited,
EU’s judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris
evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
How high earners can evade
a pension headache — FT MONEY

The prime minister wants to get on to scheduled to be agreed by October. Brexit, is already in conflict with the to launder money, said the NCA, which
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to

Number One Southwark Bridge,

JENNIFER THOMPSON — LONDON
Christopher Niehaus, a former Jeffer- ban people from installing apps on their

Shutdown risk as border

wall bid goes over the top
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
regulators cracking down on commu-
nications over Facebook’s popular
chat app.
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
saging apps as the same as everything
else”.
‘Financial
Brussels takes toughTimes’ and ‘FT’ are registered trade marks
stance on Brexit
with Spain handed veto over Gibraltar
390_Cover_PRESS.indd 1 19/01/2017 13:57

London SE1 9 HL, United Kingdom.

Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus

of The Financial Times Limited.

avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staff’s communication.
Several large investment banks have
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
the front foot in Brexit talks but faces a Mr Davis’s team does not expect the government’s aim of creating a hostile also recognised that Brexit would bring
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would
his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require “existing regulatory, budgetary,
Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

Tel: 020 7873 3000 defence and border spending could

force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

to accept the proposals. encryption system that cannot be
US budget Q&A and accessed without permission from the
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
significant hurdle: her warring cabinet document to describe in detail the UK’s environment for financial criminals, a heightened corruption risk.
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and
for comment. About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials
Additional reporting by Chloe Cornish today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
Lombard page 20 wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possible if certain conditions are met.

Editor: Lionel Barber Subscribe In print and online

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will pile pressure on English councils,
which will have to pay care workers a
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The Financial Times and its journalism are subject to
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
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ess that prioritises progress on with-
drawal terms.
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largely “constructive”, with one saying it
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

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ing a plan for a customs relationship. and Brussels have agreed to guarantee They pointed to the policy of making dated and fragmented, with no one
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Are available of any FT article with your company Mrs May’s Brexit cabinet committee no hard border between Northern Ire- it easy to set up businesses during testi- agency or minister accountable.
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Wednesday 16 May 2018 ★ FINANCIAL TIMES 3

NATIONAL

Security chiefs
EU divorce

Holyrood
rejects Brexit
urge tougher legislation as
cyber defences ‘power grab’

against Russia
MURE DICKIE — EDINBURGH

The Scottish parliament yesterday

‘Landmark’ briefings held with public sector
bodies and companies after Salisbury poisonings
DAVID BOND
SECURITY AND DEFENCE EDITOR
Some of Britain’s biggest companies and
public sector bodies have been warned
to take tougher steps to avoid Russian
cyber attacks following the Salisbury
poisoning, the head of the National
Cyber Security Centre has revealed.
Ciaran Martin said the NCSC had held
a series of “landmark” briefings with
130 companies and public sector bodies
after the nerve agent attack on former
Russian double agent Sergei Skripal and
his daughter, Yulia, in March.
The move was a response to the dete-
rioration in relations between London
and Moscow after the attack, which the
government blamed on the Kremlin.
“Before Salisbury, Russia was our
principal hostile adversary in cyber
space and we were doing something
about that,” said Mr Martin.
“It made sense to have a surge in the
protective campaign in key parts of the
economy after the heightened tension
around Salisbury.”
While he said there had been no evid-
ence of a sudden rise in hostile cyber
activity by Russia after the incident, he
added the UK’s intelligence services
were monitoring a “strategic Russian
presence” on IT networks of a number
of British companies and public bodies.
“That cannot be right and that can’t
be in the national interest,” he added.
For security reasons, Mr Martin did
not disclose the names of the companies
or public sector bodies that attended the
NCSC briefings soon after the attack.
But people familiar with the events
said they included companies in sectors
that were most critical to national secu-
rity, such as banking, energy and tele-
coms, as well as government depart-
ments. Officials from security service
MI5’s Centre for the Protection of
National Infrastructure were also
present at the events.
An NCSC briefing document, seen by
the Financial Times and given to those
at the events, sets out steps to address
cyber threats. These include an imme-
diate review of IT logging and archiving
processes to help investigators quickly
identify the source of cyber attacks. The
note also warns companies to disable
any IT services found to have potential
vulnerabilities.
Alexander Yakovenko, Russia’s
ambassador to the UK, recently reiter-
ated his government’s previous state-
ments that Moscow was not responsible
for poisoning the Skripals.
Although Salisbury plunged relations
between London and Moscow into cri-
sis, the UK has since last year taken an
increasingly tough stance on Russia.
Prime Minister Theresa May said last
November that Russia was engaged in “a
sustained campaign of cyber espionage
and disruption”, including “meddling”
in elections. This came after US intelli-
gence chiefs accused the Kremlin of
orchestrating cyber attacks to help Don-
ald Trump win the 2016 presidential
election, and MPs in the UK expressed
concern at alleged Russian interference
in the 2016 Brexit referendum.
On alert: Mr Martin said the NCSC had been on
Ciaran Martin, “heightened alert” for Russian cyber
head of the aggression during the UK’s 2017 general
National Cyber election campaign, given a “number of
Security Centre western electoral processes had been
in London the subject of some form of interference
yesterday from Russia”. This alert had resulted in a
Tolga Akmen
“surge of protective activity” by the
NCSC, he added.
A similar state of alert was adopted by
the NCSC after the Salisbury attack. “It
seemed to us prudent to step up quite
dramatically our programmes of
national protection,” he said.
One executive from a private comp-
any who attended a briefing said that
while it was already assessing the poten-
tial Russian cyber threat after Salisbury,
the government’s view carried “a signifi-
cant amount of weight”.
In April, shortly after its briefings
with companies and public sector bod-
GDPR video ies, the NCSC issued a joint statement
How Europe’s with the US homeland security depart-
data law works ment and the FBI, to warn against
ft.com/video “malicious cyber activity” by Russia.
The statement said Russia was direct-
‘It made ing cyber exploits at IT network infra-
structure such as routers, switches and
sense to firewalls “to support espionage, extract
have a surge intellectual property, maintain persist-
ent access to victim networks, and
in the potentially lay a foundation for future
protective offensive operations”.
Mr Martin said that statement and the
campaign NCSC briefings with companies and the
in key parts public sector showed that western gov-
ernments were moving beyond a tradi-
of the tional role of warning organisations
economy about such threats to now issuing clear
indicators of what to look for and how to
after the address the problems. “That’s some-
heightened thing of a landmark for us,” he added.
Mr Martin said Russian state hacking
tension had evolved over the past three years,
around noting that the rise of reckless and des-
tructive attacks aimed at one nation had
Salisbury’ had “unintended consequences” for
other countries. He highlighted Russian
interest in “wider social disruption”.
“It is now well known there is a cam-
paign to destabilise and interfere with
the social discourse of democratic
nations,” he added.
voted emphatically to deny consent for
the UK’s Brexit legislation, deepening a
constitutional dispute that threatens to
complicate moves to leave the EU.
The 93: 30 vote in Holyrood left only the
Scottish Conservatives approving an EU
Withdrawal bill that critics say under-
mines the UK’s constitutional settle-
ment by giving Westminster a final say
in devolved areas such as farming and
agriculture.
In Holyrood, Labour, the Liberal
Democrats and the Green party all
backed the ruling Scottish National
party’s call for consent to be denied.
However, UK government comprom-
ises including promises of consultation
and a seven-year sunset clause looked
likely to be enough to win the consent of
the Welsh assembly for the withdrawal
bill, with only Plaid Cymru expected to
vote against later yesterday.
Under the Sewel Convention, such
consent is normally required if West-
minster seeks to legislate on matters
devolved to the Scottish parliament and
Welsh and Northern Ireland assem-
blies. The UK government has made
clear it is prepared to override Scottish
objections.
Yesterday’s vote will focus attention
on the UK government’s challenge to
Scottish Brexit legislation that cuts ac-
ross Westminster’s withdrawal bill. The
Scottish legislation gives Holyrood final
control over areas such as fishing, farm-
ing and some environmental policy.
These powers were devolved in 1999
but have been exercised by Brussels as
part of the UK’s membership of the EU.
The government argues it must have
final say over some areas of them to pre-
serve the UK’s internal market.
The SNP says it accepts that UK-wide
frameworks will be required but the UK
government’s insistence on having the
final say amounts to a “power grab”.

Commons report

Clean power funding fall sparks warning

JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
MPs have warned of a “dramatic and
worrying collapse” in clean energy
investment in the past three years.
The proportion of electricity generated
from low-carbon sources, including
nuclear, doubled between 2009 and last
year, when it hit a record 50 per cent.
Yet this belies a drop in the annual
investment in clean energy, which fell
10 per cent year on year in 2016 and
another 50 per cent in 2017 — when it
was at its lowest level since 2008, said
the environmental audit committee.
In a report today, MPs on the commit-
tee blamed the trend on a succession of
Conservative-led policy decisions, in-
cluding cuts to green energy subsidies.
Since 2015, ministers have privatised
the Green Investment Bank, prema-
turely closed the renewables obligation
to onshore wind, removed the climate
change levy exemption for renewables
and reduced feed-in tariffs for small-
scale renewable generation.
The government has also cancelled
the zero-carbon homes policy that was
to begin in 2016 and scrapped a £1bn
competition to set up a new “carbon
capture and storage” plant to remove
carbon dioxide from gas plants.
The MPs called on ministers to pub-
lish a plan to secure the investment
50 % 72
Decline in Number of hours
clean energy the UK recently
investment went without
last year burning coal
needed to meet UK “carbon budgets” —
milestones towards the goal of reducing
carbon emissions to “net zero” by 2050.
Mary Creagh, Labour MP and com-
mittee chair, said billions of pounds of
further investment were needed to
decarbonise the energy system.
“A dramatic fall in investment is
threatening the government’s ability to
meet legally binding climate change
targets,” she said, adding that the gov-
ernment “must urgently plug this policy
gap and publish its plan to secure the
investment required”.
Ministers produced a “clean growth
strategy” last October, but Ms Creagh
described the document as “long on
aspiration but short on detail”. She said
the strategy did not do enough to meet
legally binding climate change targets
even if all its policies were delivered.
MPs urged the government to negoti-
ate to maintain ties with the European
Investment Bank after Brexit, allowing
continued access to funding for riskier
early-stage green infrastructure
projects. But Brussels says the UK will
lose access to the EIB. The Treasury is
working on alternative plans.
The Department for Business, Energy
and Industrial Strategy said: “The UK is
a world leader in cutting emissions, with
50 per cent of our electricity coming
from low-carbon sources and recently
going 72 hours without burning coal.
We’re committed to meeting our cli-
mate change targets.”
Air-conditioning fears page 6

National Audit Office

Green energy switch set to drive up bills

SYLVIA PFEIFER
ENERGY CORRESPONDENT
A change in the rules of auctions that
are designed to encourage low-carbon
generation will cost consumers £100m
a year in higher bills, according to the
National Audit Office.
An investigation by the NAO found that
changes introduced by the Department
for Business, Energy and Industrial
Strategy last year favoured smaller,
more expensive projects over schemes
that would have generated more elec-
tricity at a cheaper price per unit.
As a result, the contracts awarded will
cost energy users — businesses as well as
consumers — about £1.5bn more over
the 15-year life of the schemes and could
lead to higher electricity bills. The extra
cost is in exchange for a small amount of
additional generating capacity, accord-
ing to the NAO, compared with what
would have happened had the rules not
changed.
Meg Hillier, the Labour MP who
chairs the Commons public accounts
committee, said the department had
“once again . . . neglected to put the
interests of service users at the forefront
of its thinking”.
Subsidy auctions to support invest-
ment in renewables have been a central
part of the government’s energy policy
as it strives to meet tough carbon reduc-
tion targets.
Under so-called contracts for differ-
ence, developers are guaranteed a mini-
mum rate, known as the strike price, for
the electricity they generate. Energy
users pay a top-up if the market price
falls below this amount.
The NAO’s investigation is focused on
last September’s auction in which 11
contracts were awarded to projects that
will collectively generate 3.3 gigawatts.
Higher cost: the auction rule change
is predicted to put up bills by £1.5bn
The majority of the electricity, or
3.2GW, will be generated by three off-
shore wind projects. The remaining
eight contracts were awarded to smaller
projects using technologies including
biomass systems that create electricity
as well as heat.
Although the contracts were awarded
at much lower prices than ministers had
expected as the costs of offshore wind
farms had fallen significantly, the
watchdog found the auction would nev-
ertheless cost consumers more relative
to the additional capacity it secured.
The watchdog blamed the govern-
ment’s decision to cap the amount of
generating capacity that projects using
less-established types of technology
could be awarded. The rule change
meant that the smaller technology
projects in effect pulled up the price for
those that had already been accepted,
the NAO said.
BEIS said the 2017 auction had saved
£528m per year compared with the
absence of competition. It had reviewed
the change in the rules with regards to
smaller technologies and would not
apply a cap in the next auction round.
4 ★
Tariff talks
US and China ‘far apart’ on trade dispute
Trump envoy calls on
Beijing to give timetable
on market opening
GABRIEL WILDAU — SHANGHAI
SHAWN DONNAN — WASHINGTON
EDWARD WHITE — TAIPEI
The US and China are “still very far
apart” on disputes over trade, technol-
ogy and market access, the US ambassa-
dor to China said yesterday, managing
expectations ahead of a visit to Wash-
ington by a senior Chinese official.
Speaking in Tokyo, Terry Branstad
said his country wanted to see a “spe-
cific timetable” on market opening, fol-
lowing demands presented by a US dele-
gation that visited Beijing this month.
Mr Branstad was one of seven US repre-
sentatives who participated in the talks.
“The Chinese have said ‘we want to
Coalition negotiations
Five Star and League at
odds on Italy’s EU stance
JAMES POLITI — ROME
Italy’s far-right League pressed the
anti-establishment Five Star Move-
ment to embrace tougher positions
towards the EU, as a split between the
two populist parties over their
approach to Europe convulsed their
talks to form a government.
Matteo Salvini, the League’s leader, has
been more confrontational towards
Brussels than Luigi Di Maio, his more
conciliatory Five Star counterpart. Offi-
cials close to the negotiations said this
had become a source of strain as the
Eurosceptic parties attempted to forge a
populist alliance to run the eurozone’s
third-largest economy.
“We are still negotiating and it is still
possible we have a deal but there is a lot
of confusion over Europe — this is a
‘It is still possible we have a
deal but there is a lot of
confusion over Europe’
Guglielmo Picchi, the League
risk,” said Guglielmo Picchi, an MP and
foreign policy adviser for the League.
Five Star and the League have often
depicted Brussels as a source of exces-
sive budgetary austerity, oppressive
banking regulations, damaging eco-
nomic sanctions against Russia and
migration rules that place a huge bur-
den on Italy. Both parties have
demanded a revision of EU treaties but
disagree on how to reach that goal.
Mr Picchi added: “We want to play a
very active role to change Europe. Five
Star are more passive, it is like they are
part of the Franco-German axis. We are
prepared for talks on issues like the EU
budget that will constrain this govern-
ment and the next — they say ‘let’s see
what happens’.”
Mr Salvini and Mr Di Maio emerged as
the big winners of Italy’s general elec-
tion in early March after voters rebuked
traditional parties amid widespread dis-
satisfaction with weak economic growth
and surging migration.
After 10 weeks of political stalemate,
the two leaders began negotiating a pos-
sible coalition deal to govern together
Trump vs the Valley
FRIDAY 31 MARCH 2017
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
HMRC warns
customs risks
being swamped
by Brexit surge
3 Confidence in IT plans ‘has collapsed’
3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expected once Britain
leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parlia-
mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
Setting up a digital customs system
has been at the heart of Whitehall’s
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
whether Whitehall can implement a
host of regulatory regimes — in areas
ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Shutdown risk as border
wall bid goes over the top
Congressional Republicans seeking to
avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
to accept the proposals.
US budget Q&A and
Trump attack over health bill i PAGE 8
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© THE FINANCIAL TIMES LTD 2017
No: 39,435 ★
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A Five Star plan?
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
adjust its negotiation position with the
EU, a Whitehall official said. “If running
our own customs system is proving
much harder than we anticipated, that
ought to have an impact on how we
press for certain options in Brussels.”
In a letter to Andrew Tyrie, chairman
of the Commons treasury select com-
mittee, HMRC said the timetable for
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a
complex programme” that needed to be
linked to dozens of other computer sys-
tems to work properly. In November,
HMRC assigned a “green traffic light” to
CDS, indicating it would be delivered on
time. But last month, it wrote to the
committee saying the programme had
been relegated to “amber/red,” which
means there are “major risks or issues
apparent in a number ofkey areas”.
HMRC said last night: “[CDS] is on
track to be delivered by January 2019,
and it will be able to support frictionless
international trade once the UK leaves
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.”
HMRC’s letters to the select commit-
tee, which will be published today, pro-
vide no explanation for the rating
change, but some MPs believe it was
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
City watchdog sends a clear message as
banker loses job over WhatsApp boast
LAURA NOONAN — DUBLIN
JENNIFER THOMPSON — LONDON
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
regulators cracking down on commu-
nications over Facebook’s popular
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staff’s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
encryption system that cannot be
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
STOCK MARKETS
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WORLD BUSINESS NEWSPAPER
Lloyd’s of Brussels Insurance market
to tap new talent pool with EU base
Lloyd’s of London chose Brus-
sels over “five or six” other
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
Berrys after discussions with regulators.
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
World Markets
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insurers to follow. Most of the
business written in Brussels
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
media at work, but banks are unable to
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
saging apps as the same as everything
else”.
Information shared by Mr Niehaus
included the identity and details of a
client and information about a rival of
Jefferies. In one instance the banker
boasted how he might be able to pay off
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Facebook did not respond to a request
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
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FINANCIAL TIMES Wednesday 16 May 2018
INTERNATIONAL
Cfius reform
Senate recoils
from security
see the specifics’. We gave them all the
specifics in terms of trade issues. So they
rable duties of its own. Mr Trump has
asked Beijing to reduce the US’s $337bn
tion from the US business community
and both Republicans and Democrats in
night for at least three days of talks.
Discussions in Beijing this month
checks on US
can’t say they don’t know what we’re
asking for,” he said, according to Reu-
bilateral trade deficit with China by
$200bn in the next two years.
Washington concerned Mr Trump may
miss an opportunity to force more
yielded no deal, but the two sides agreed
to keep talking. In addition to the call for
outbound
ters. “We are still very far apart.”
Mr Branstad said China had not met
pledges to open financial services and
According to people briefed on the
talks, the two sides will discuss a possi-
meaningful economic reforms in China.
“About to get out-negotiated by China
again,” Republican senator Marco Rubio
deficit reduction, the US wants China to
end subsidies for strategic industries
and strengthen intellectual property
investments
cut car tariffs. “There are many areas tweeted yesterday. “China intends to protection.
where China has promised to do but
‘We gave them all the dominate the key industries of the 21st US businesses privately fear that Mr SHAWN DONNAN — WASHINGTON
haven’t. We want to see a timetable. We specifics. So they can’t Century not through out innovating us, Trump is prepared to strike a quick deal
Senior senators have ditched a plan
want to see these things happen sooner but by stealing our intellectual property on cutting the bilateral deficit that does
or later,” he said.
say they don’t know & exploiting our open economy while not address these broader issues. Mr
that would have made US companies’
outbound investments to China and
President Donald Trump reiterated what we’re asking for’ keeping their own closed. Why are we Trump’s promise to ease sanctions on
other countries potentially subject to
that he was eager for a deal with Beijing. helping them achieve this by making a ZTE as part of a wider trade accord has
national security reviews, after months
“Trade negotiations are continuing ble “mini deal” this week in which the terrible deal on ZTE?” fuelled those concerns.
of lobbying by General Electric and
with China. They have been making US would reduce sanctions on ZTE Mr Branstad said Mr Trump would “[Our members] don’t want tariffs,”
IBM.
hundreds of billions of dollars a year Corp, the Chinese telecommunications like to see a “dramatic increase” in food Tom Donohue, head of the US Chamber
from the US, for many years. Stay company on whose behalf Mr Trump exports to China. “We’d like to see China of Commerce, said in Beijing. “On the The move appears to open the way for
tuned!” he tweeted. intervened on Sunday, and China would being just as open as the United States.” other hand they desperately want to get legislation on strengthening the man-
The US has threatened tariffs worth withdraw threatened retaliation against Liu He, China’s vice-premier and top systemic problems [in China] resolved.” date of the Committee on Foreign
$150bn on Chinese exports, and China US agricultural exports. economic adviser to President Xi Jin- Additional reporting by Tom Mitchell in Investment in the US to clear Congress
has said it would retaliate with compa- But news of that deal is facing opposi- ping, arrived in Washington last Beijing this summer, amid bipartisan calls in
Washington to increase scrutiny of Chi-
nese investment in the US.
It also comes as the US Treasury is
preparing recommendations to create
Rare its own investment restrictions to pro-
discovery:
‘Portrait
of a Young
tect strategic sectors such as artificial
intelligence and robotics from Chinese
ownership. That move is part of a
Gentleman’
was bought
by Jan Six at
broader investigation into Beijing’s
alleged systematic theft of US intellec-
tual property launched by the Trump
auction in administration that has raised trade
2016 for tension with China.
last week — and claimed to have reached £137,000. The push to reform Cfius and the new
agreement on key issues at the week- The art Treasury measures are aimed at
end. But on Monday negotiations expe- dealer addressing growing concerns in Wash-
rienced a setback after the pair failed to suspected ington over China’s push to buy up
agree a choice of prime minister to it was an important technologies as part of an
present to President Sergio Mattarella, original innovation race between the world’s two
who is refereeing the talks. They by Dutch largest economies.
pleaded for more time to reach a deal. master The original Cfius provisions on out-
Mr Salvini emerged angry from his Rembrandt bound investment were seen as a radical
meeting with Mr Mattarella, suggesting René Gerritsen/ move that would have potentially given
Hermitage,
he may be having second thoughts Amsterdam the secretive committee a veto over a
about the tie-up. “Italy’s new position on wide array of US companies’ invest-
Europe is a delicate argument — and ments overseas.
either there is agreement there or there Currently, Cfius is only allowed to
will be none,” he said. review inbound transactions to the US
He said he wanted more freedom for for potential national security threats.
the government to spend money in defi- But proponents in Washington had
ance of EU budget rules, and a “free argued that the outbound measures
hand” to tackle immigration. were necessary to protect US companies
“Either I can give life to a government from being forced to hand over vital
that can review these external con- technologies to foreign joint venture
straints, or it is a fairytale. I do not want partners by governments as a cost of
to take anyone for a ride.” doing business in a country — one of the
Yesterday he increased his criticism Trump administration’s main com-
of Brussels after Dimitris Avramopou- plaints about China.
los, EU migration commissioner, said he Opponents including GE and IBM
hoped Italy’s migration policy would argued that the move would have repre-
not change under the new government. sented a threat to even their most
“This is yet another interference by benign offshore investments and hurt
the unelected. We have welcomed and their competitiveness internationally
supported way too many — now is the with rivals not facing similar scrutiny. It
moment for legality, security and push- also would have increased the number
backs,” Mr Salvini wrote on Twitter. of transactions reviewed by Cfius from a
Five Star officials sought to minimise few hundred to thousands each year,
the dispute. “We want balance and the critics claimed.
wellbeing of the country within the But a new draft bill circulated by Mike
European framework, we’ve always said Crapo, Senate banking committee chair,
this,” Carla Ruocco, a Five Star law-
maker, told reporters in a video posted
on La Repubblica’s website. “I don’t
Rembrandt An Amsterdam art dealer has hailed
the “once in a lifetime” discovery of a
Rembrandt portrait after buying the
once in a lifetime,” Mr Six said. “It’s
an absolutely fantastic portrait of a
young man from the 17th century at
and his Democratic counterpart, Sher-
rod Brown, last week would abandon
the plan to have Cfius review outbound
think our positions are so different.
Europe needs to be respected and Italy Portrait is 17th century work at auction.
“Portrait of a Young Gentleman”
the age of 20-25 who was part of the
elite of Amsterdam.”
transactions.
Instead, it orders the Trump adminis-
needs to be respected.”
As well as the approach to the EU,
League officials have said there are disa-
‘once in a was attributed to the “circle of
Rembrandt” when offered by
Christie’s in London with an estimate
Rembrandt is believed to have
painted it around 1634, aged 28. The
oil canvas ended up in the collection
tration to update a list of products and
technologies subject to traditional
export controls to reflect new concerns
greements over justice reform and
infrastructure. Five Star has tradition-
ally resisted big projects such as high-
lifetime’ find of £15,000-£20,000.
Jan Six, who bought it at the
auction in 2016 for £137,000,
of Richard Neave, governor of the
Bank of England from 1783 to 1785.
His descendants sold it at Christie’s.
over “emerging critical technologies”.
The banking committee is due to con-
sider the text of the bill formally next
speed rail links and gas pipelines, which suspected it was an original by the Mr Six aims to sell the painting and week, in a sign that Mr Crapo believes he
the League generally supports. Dutch master and later had it did not wish to disclose his estimate has the votes needed to pass the legisla-
The parties’ staff met again yesterday, authenticated by a dozen Rembrandt of its value. The portrait will go on tion.
with Mr Di Maio and Mr Salvini experts including Ernst van de display for a month at the Hermitage It also has received a cautious wel-
expected to hold another face-to-face Wetering, the acknowledged in Amsterdam today. come from Senator John Cornyn, the
summit later in the day. authority on the painter. News of the discovery was first Republican co-sponsor of the original
Mr Mattarella has given them until “Real discoveries are very, very reported by Dutch newspaper NRC. bill. But a spokeswoman for Mr Cornyn
Monday to strike a full agreement — rare. A discovery like this is probably James Pickford, London on Monday refused to say if he would
including the choice of prime minister. fully endorse the new version.
Civil society Europe
UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
Dear Don...
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
Soros foundation cites political Slower German growth raises
pressure as it exits Hungary concerns for eurozone outlook
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80 SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
THE END
Briefing
HOW DRIVERLESS
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border
OF THE TECHNOLOGY IS
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
CHANGING AN
ROAD
i Report outlines longer NHS waiting times
A report on how the health service can survive
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while
AMERICAN WAY OF LIFE Censors and sensitivity
Warning: this article may be
some surgical procedures will be scrapped.— PAGE 4
FT WEEKEND MAGAZINE
upsetting — LIFE & ARTS
i Emerging nations in record debt sales
Developing countries have sold record levels of
government debt in the first quarter of this year,
taking advantage of a surge in optimism toward
Credit Suisse Art of persuasion Mystery deepens
emerging markets as trade booms.— PAGE 15
i London tower plans break records
A survey has revealed that a over disputed painting of Jane Austen How To Spend It
record 455 tall buildings are
engulfed in
planned or under construction
in London. Work began on
almost one tower a week
during 2016.— PAGE 4
fresh tax probe
i Tillerson fails to ease Turkey tensions
The US secretary of state has failed to reconcile
tensions after talks in Ankara with President Recep
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
in Scotland
MAGAZINE
FEBRUARY 4 2017
Mr Orban has signalled a priority for estimate. The slowdown complicated
i Toshiba investors doubt revival plan
3 UK, France and Netherlands swoop
In a stormy three-hour meeting, investors accused
managers ofhaving an entrenched secrecy culture
3 Blow for bid to clean up Swiss image
and cast doubt on a revival plan after Westinghouse
filed for Chapter 11 bankruptcy protection.— PAGE 16
RALPH ATKINS — ZURICH
DUNCAN ROBINSON — BRUSSELS
i HSBC
it followed “a strategy offull client tax
woos transgender customerscompliance” but was still trying to
NEIL BUCKLEY CLAIRE JONES — BRUSSELS
EASTERN EUROPE EDITOR CAT RUTTER POOLEY — LONDON
The bank has unveiled a range of gender-neutral gather information about the probes.
the new term will be passing a “Stop the task of the region’s monetary policy-
Credit
titles suchSuisse
as “Mx”,has been targeted
in addition by Miss or
to Mr, Mrs, HM Revenue & Customs said it had
Ms,sweeping
in a move tax
toinvestigations
embrace diversity in the
andUK,
cater to launched
the a criminal investigation into
France
needs and the Netherlands,
of transgender customers.— setting
PAGE 20 suspected tax evasion and money laun-
back Switzerland’s attempts to clean up dering by “a global financial institution
its image as a tax haven. and certain ofits employees”. The UK
The Swiss bank said yesterday it was tax authority added: “The international
Datawatch
co-operating with authorities after its reach of this investigation sends a clear
offices in London, Paris and Amsterdam message that there is no hiding place for
The lure of the exotic
wereattacks
Terror contacted by local
in western Europe officials those— seeking to evade tax.” Robin Lane Fox on the flair
Soros” package that would impose fur- makers who want to wind down some of
Recent attacks
“concerning client tax matters”. notably the 2011 Dutch prosecutors, who initiated the
Dutch authorities
Highlighted attack said their counter-
Others action, said they seized jewellery, paint- of foreign flora — HOUSE & HOME
Billionaire George Soros’s philan- German growth slowed dramatically in
massacre by
parts in Germany were also involved, ingsinand gold ingots as part of their
Anders Breivik
AFP while Australia’s revenue department Norway, theprobe; while French officials said their
EU, with Dublin and Luxem- said it was investigating a Brussels
Swiss bank. investigation had revealed “several
attacks in Paris
The inquiries threaten to undermine and Nice, and the
thousand” bank accounts opened in
bourg thought to be more likely Norway Brussels suicide
efforts by the Paris country’s banking sector Switzerland and not declared to French
homes for the industry. But Nice bombings —
to overhaul business models and ensure taxhave
authorities.
ther restrictions on non-governmental their crisis-era stimulus this year.
Mr Nelson said the city won on
customers meet internationalbucked tax the trend The Swiss attorney-general’s office
its transport links, talent pool of generally low
requirements following a US-led clamp- said it was “astonished at the way this
and “extremely good regula- fatalities from
thropic foundation is closing its Buda- the first quarter, highlighting the risk
down on evaders, which resulted in operation has been organised with the
tory reputation”. Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
billions of dollars in fines. deliberate exclusion of Switzerland”. It
western Europe
Lex page 14 The probes risk sparking an interna- demanded a written explanation from
Insurers set to follow page 18 tional dispute after the Swiss attorney- Dutch authorities.
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
Escape the taper trap
groups, and which activists warn could François Villeroy de Galhau, governor
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.
How high earners can evade
pest office and shifting operations to of a broader downturn in the euro-
Credit Suisse, whose shares fell 1.2 per Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether-
lands, France and the UK. The bank said in Paris
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY
hit civil society more broadly. of Banque de France, on Monday con-
Brussels takes tough stance on Brexit
Berlin as it faces what it called an zone’s economic fortunes this year
with Spain handed veto over Gibraltar
“The government of Hungary has de- firmed expectations that the European
ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
“increasingly repressive political and after a stellar performance in 2017.
STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
fully been singled out for unfavourable
treatment by the council at the behest of
Spain”. Madrid defended the draft
THE RISE
supervisory OF instru-
and enforcement
ments and structures to apply”.
ECO-GLAM
require “existing regulatory, budgetary,
Britain’s plea for early trade talks and
Living wage rise to pile explicitly giving Spain a veto over any clause, pointing out that it only reflected Mr Tusk wants talks on future trade
pressure on care services arrangements that apply to Gibraltar. “the traditional Spanish position”. to begin only once “sufficient progress”
Central Bank’s governing council
Senior EU diplomats noted that has been made on Britain’s exit bill and
About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials
legal environment” in Hungary.
today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possible if certain conditions are met.
will pile pressure on English councils, the road to Brexit, sought to damp Brit- that the EU negotiating stance was Boris Johnson, the foreign secretary,
which will have to pay care workers a ain’s expectations by setting out a largely “constructive”, with one saying it reassured European colleagues at a
lot more. Some 43 per cent of care “phased approach” to the divorce proc- was “within the parameters of what we Nato summit in Brussels that Mrs May
staff — amounting to 341,000 people ess that prioritises progress on with- were expecting, perhaps more on the had not intended to “threaten” the EU
aged 25 and over — earn less than the drawal terms. upside”. when she linked security co-operation
The eurozone’s largest economy, which planned to stop buying new bonds
390_Cover_PRESS.indd 1 19/01/2017 13:57
new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
expected to cost councils’ care services Spain the right to veto any EU-UK trade insistence on a continuing role for the Reports & analysis page 3
£360m in the coming financial year. deals covering Gibraltar could make the European Court of Justice in any transi- Jonathan Powell, Tim Harford &
Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11
price yield chg Madrid and London an obstacle to Brussels sees little room for compro- Henry Mance page 12
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chg
-0.01
The Open Society Foundations pledged George Soros: his accounts for about 30 per cent of the under a €2.4tn quantitative easing pro-
www.ft.com
foundation says it
Nasdaq Composite 5918.69 5914.34 0.07 $ per £ 1.251 1.249 £ per $ 0.800 0.801 UK Gov 10 yr 100.35 1.22 0.02
-0.36 -0.36 0.00
Dow Jones Ind 20689.64 20728.49 -0.19 £ per € 0.855 0.859 € per £ 1.169 1.164 Ger Gov 10 yr 99.27 0.33 -0.01
0.34 0.34 0.00 © THE FINANCIAL TIMES LTD 2017 FTSEurofirst 300 1503.03 1500.72 0.15 ¥ per $ 111.430 111.295 ¥ per € 119.180 119.476 Jpn Gov 10 yr 100.36 0.07 0.00
No: 39,436 ★
to continue supporting the work of civil region’s output, slowed from a 0.6 per gramme by December.
Data provided by Morningstar
Euro Stoxx 50 3495.59 3481.58 0.40 ¥ per £ 139.338 139.035 £ index 77.226 76.705 US Gov 30 yr 99.27 3.04 0.01
Printed in London, Liverpool, Glasgow, Dublin, FTSE 100 7322.92 7369.52 -0.63 € index 88.767 89.046 $ index 104.536 104.636 Ger Gov 2 yr 102.57 -0.75 0.00
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 3990.00 4011.01 -0.52 SFr per € 1.071 1.069 SFr per £ 1.252 1.244 price prev chg
Chicago, San Francisco, Washington DC, Orlando, CAC 40 5122.51 5089.64 0.65 COMMODITIES Fed Funds Eff 0.66 0.66 0.00
will channel funds
Tokyo, Hong Kong, Singapore, Seoul, Dubai Xetra Dax 12312.87 12256.43 0.46 Mar 31 prev %chg US 3m Bills 0.78 0.78 0.00
Nikkei 18909.26 19063.22 -0.81 Oil WTI $ 50.46 50.35 0.22 Euro Libor 3m -0.36 -0.36 0.00
Hang Seng 24111.59 24301.09 -0.78 Oil Brent $ 53.35 53.13 0.41 UK 3m 0.34 0.34 0.00
FTSE All World $ 297.38 298.11 -0.24 Gold $ 1244.85 1248.80 -0.32 Prices are latest for edition Data provided by Morningstar
society groups in Hungary but said it to Hungarian civil cent rise between the third and fourth But the weakness of the economic
would in future channel funding from society groups quarter to 0.3 per cent in the opening data is likely to delay formal ECB guid-
the German capital. from Berlin quarter of this year, according to an ini- ance about its future plans.
Mr Soros and his foundation have tial estimate from the German Federal ECB officials are now more likely to
come under huge pressure from the nigrated and misrepresented our work Statistical Office yesterday. wait until July before issuing a formal
rightwing Fidesz government of Prime and repressed civil society for the sake The fall happened because of a slide in statement about the exit from stimulus,
Minister Viktor Orban, which has of political gain, using tactics unpre- trade — a development that business a communication that markets are
alleged the billionaire is behind a “Soros cedented in the history of the EU,” said sentiment surveys had flagged, with eagerly awaiting, rather than doing so at
plan” to flood the EU and Hungary with Patrick Gaspard, OSF president. OSF German companies becoming increas- a June meeting of the ECB’s governing
millions of mainly Muslim migrants. said last month it would consider the ingly concerned that slower global council in Riga.
The claims, rejected by Open Society closure if the package was passed. growth and rising geopolitical tensions A variety of economic data have indi-
and independent analysts as fictitious, The government has declined to com- would hit exports. cated that both the eurozone and the
were a central part of Fidesz’s successful ment but Fidesz supporters cheered the Eurozone growth has slowed from 0.7 German economy have experienced
re-election campaign, which saw it win a departure of a group that pro-govern- per cent at the end of last year to 0.4 per only a lacklustre start to the year after
*Terms and conditions can be found at www.ft.com/subscribenow third consecutive term in office last ment media have portrayed as a cent, said Eurostat, the EU’s statistics an unexpectedly strong performance in
month with nearly 48 per cent of votes. national bogeyman. office, yesterday, in line with an earlier 2017.
Wednesday 16 May 2018 FINANCIAL TIMES 5
6 ★
Karnataka election
Modi party stuns rivals in India state poll
Premier’s BJP stages big
comeback in region ruled
by Gandhi-led Congress
AMY KAZMIN — NEW DELHI
India’s ruling Bharatiya Janata party has
beaten its rival Congress in an election
contest in Karnataka, the last large state
governed by the party that led India’s
anti-colonial struggle and dominated its
politics for decades after independence.
The contest, in which Prime Minis-
ter Narendra Modi and Congress leader
Rahul Gandhi campaigned heavily, was
considered crucial for creating momen-
tum for next year’s general election,
when Mr Modi will seek a second term.
Malaysia vote slows Belt and Road plan
New premier pledges review
of projects amid wave of anger
at scandal-tainted predecessor
BEN BLAND — KUALA LUMPUR
Chinese president Xi Jinping and former
Malaysian prime minister Najib Razak
thought they had devised the perfect
“win-win” deal. Beijing pledged tens of
billions of dollars in loans and invest-
ments to support Malaysia’s economy
and Mr Najib promised to roll out Chi-
nese rail and port developments, as
other “Belt and Road” projects stalled
across south-east Asia.
But the Malaysian people got in the
way, last week voting out the ruling
party headed by Mr Najib for the first
time in 60 years, in part because of accu-
sations that their graft-tainted leader
was selling out the country.
Riding the wave of anger at Mr Najib,
new premier Mahathir Mohamad has
promised to review all Chinese projects
and renegotiate any “unequal treaties”,
threatening to destroy Malaysia’s image
as poster child for Mr Xi’s Belt and Road
policy and upset China’s position in the
country, a strategic crossroads for Asia.
“China had a long experience in deal-
ing with unequal treaties and China
resolved it by renegotiation,” Mr
Mahathir said. “So, we feel we are enti-
tled to study and, if necessary, renegoti-
ate the terms.”
Despite Mr Xi’s ambitious strategy to
build new infrastructure corridors
through south-east and central Asia,
high-profile rail projects in Indonesia,
Laos and Thailand have been delayed
over cost, financing and land.
Mr Najib, who tightened the screws on
Malaysia’s already authoritarian system
as he was weighed down by scandals,
promised to fast-track more than $30bn
of Chinese port, rail and other infra-
structure projects, in a similar way to
Mahinda Rajapaksa, the former strong-
man president of Sri Lanka.
“They spotted weakness in Najib, just
like they did in Rajapaksa,” said one
investment banker in Kuala Lumpur.
“But the Malaysian people didn’t want
to end up like Sri Lanka, handing over
assets to China because they can’t pay
off the debts.”
Mr Najib has been banned from leav-
ing the country by Mr Mahathir, who is
determined to keep campaign promises
China focus
Billionaire Bloomberg launches rival to Davos Japan prioritises island defence in ocean policy
ANDREW EDGECLIFFE-JOHNSON
NEW YORK
Michael Bloomberg is launching a rival
to the World Economic Forum’s annual
gatherings in Davos, aimed at address-
ing a changed global order in which
China’s rise challenges the primacy of
the US.
The financial data billionaire has
enlisted two long-term China watchers,
former US secretary of state Henry Kiss-
inger and ex-US Treasury secretary
Hank Paulson, to design the New Econ-
omy Forum. They have partnered with
the China Center for International Eco-
nomic Exchanges, a self-described
“think-tank with Chinese characteris-
tics”, which is overseen by the central
planning ministry and led by Zeng Pei-
yan, a former vice-premier. The forum
will hold its first two-day meeting in Bei-
jing in November.
Davos has become shorthand for a
global elite of business leaders and poli-
cymakers since Klaus Schwab’s WEF
held its first meeting in the Swiss ski
resort in 1974. But Mr Bloomberg told
the FT his event would be more focused
on getting private and public sector
leaders from developed and emerging
In an election with a 72 per cent voter
turnout, the BJP looked set to take 104
seats, short of the 112 needed to form a
government, versus about 78 for Con-
gress. That disparity comes despite Con-
gress winning 38 per cent of the total
number of votes, compared with 36.3
per cent for the BJP.
The loss of seats in Karnataka, whose
capital Bangalore is India’s answer to Sil-
icon Valley, marks a big setback for Con-
gress, which has been reduced to gov-
erning just three small states — Punjab,
Mizoram and Puducherry, with a com-
bined population of 30m people.
Such was the importance of Karna-
taka to the Congress party that even Mr
Gandhi’s ailing mother, Sonia, widow of
the late prime minister Rajiv Gandhi,
China. Influence abroad
Workers install to investigate his predecessor’s links to a
drainage at the corruption scandal. Mr Najib has con-
Melaka Gateway sistently denied any wrongdoing.
development, Euben Paracuelles, economist at
one of the Nomura, said investors would have to
Chinese projects “revisit the view that Malaysia is one of
the Malaysian the top beneficiaries of Belt and
premier has Road . . . It is hard to say if projects will
promised be cancelled but, at the minimum, they
to review could face fairly significant delays.”
Sanjit Das/Bloomberg Members of Malaysia’s new governing
coalition have argued that the $14bn
Chinese infrastructure projects in Malaysia
T HA I LA ND
M A L AY S I A
Malacca
Strait
Kuala Lumpur
Malacca City
I N D O N E S IA
Sources: Nomura; Land Public Transport Commission
economies to work together on finding
“actionable solutions” to challenges
from economic inclusion to environ-
mental sustainability.
“Davos has been around for a long
time: it is a very big conference and it is
focused on lots of world problems. This
conference is focused on the world and
‘Understanding between
China and the US can
provide a framework of
peace and prosperity’
China as an emerging power and how we
all work together,” he said.
Mr Kissinger, who helped craft Rich-
ard Nixon’s 1972 visit to China and has
advised successive US presidents on
working with Beijing, said he saw the
two countries taking increasingly adver-
sarial positions, after a period of moving
towards greater harmony.
“At the moment the [Trump] admin-
istration is focusing mostly on issues in
which we are not on the same wave-
length as the Chinese,” he said, but he
argued that the US had “no real choice”
FINANCIAL TIMES
INTERNATIONAL
returned to the campaign trail for the
first time in two years.
“It’s an enormous psychological blow
for the Congress,” said Milan Vaishnav,
director of the South Asia programme at
the Carnegie Endowment for Peace, the
Washington DC-based think-tank.
“They threw everything at this and still
came out short. That’s quite a voyage
from being the pan-Indian, dominant
party to no longer having any major
state in its kitty.”
Karnataka’s governor, Vajubhai Vala,
now has to decide who to call upon to
form a new government.
In an effort to block the BJP, Congress
yesterday agreed a deal with the state’s
third-largest party, Janata Dal (Secu-
lar), to put together an administration.
‘We are
entitled to
study and, if
necessary,
renegotiate
the terms’
Mahathir
Mohamad, PM
Pledged Chinese
investment
East coast
South
rail link China
$14bn Sea
Malaysia-China
industrial park
Kuantan
and Kuantan port
expansion
$9bn
Melaka Gateway
port and
industrial zone
$11bn
100 km
S IN GA PO RE
but to come to a better understanding of
Beijing. “Understanding between China
and the US can provide a framework of
peace and prosperity, otherwise we will
divide the whole world into sections and
it will lead to a situation comparable to
prior to world war one.”
Mr Bloomberg said many business
people were worried by the short-term
nature of US policymaking, which con-
trasted with the long-term thinking
behind Chinese projects such as Presi-
dent Xi Jinping’s Belt and Road Initia-
tive. “They go around the world with
timeframes in decades and unfortu-
nately at the moment America’s time-
frame is the next temporary budget res-
olution,” he said.
The forum’s founders have signed up
participants including Janet Yellen, the
former Federal Reserve chair; Gary
Cohn, Mr Trump’s former chief eco-
nomic adviser; and dozens of corporate
chief executives from countries as
diverse as Ethiopia and Colombia. But
Mr Bloomberg said it would keep the
guest list to 400 people, in contrast to
the World Economic Forum, whose
annual meeting in the Swiss mountains
attracts about 3,000 people.
Janata Dal, led by former prime minis-
ter HD Deve Gowda, won 40 seats. The
BJP’s leadership also met the governor
to stake its claim, although Mr Vala was
said to be awaiting the final results.
But analysts say the alliance still faces
big obstacles, with the governor likely to
give the BJP an opportunity to form a
government first.
The result constitutes a remarkable
comeback for the BJP, which ruled Kar-
nataka from 2008 until 2013, only to see
its administration tainted by corruption
scandals, including allegations of illegal
mining and controversial land deals.
But Mr Modi campaigned heavily in
the state, addressing more than 20 ral-
lies in the final weeks of the campaign
when voter sentiment tilted in favour of
East Coast Rail Link is one of the most
questionable projects, in terms of value
for money and benefits for Malay-
sians. “This thing is not going to be eco-
nomically viable, it is not going to pay
for itself,” said Jomo Kwame Sundaram,
a veteran Malaysian economist, before
he was appointed to Mr Mahathir’s advi-
sory council at the weekend.
The line, construction of which
started last year, will connect the less-
developed east coast to southern Thai-
land and the capital, Kuala Lumpur. Mr
Najib’s government said it would create
80,000 jobs. It is being built by China
Communications Construction Com-
pany and is 85 per cent funded by loans
from Export-Import Bank of China,
both state-owned entities.
Lee Chean Chung, a state assembly-
man in Pahang, which would be served
by the line and is home to a big Chinese
port project, said locals wanted jobs and
growth but feared these initiatives were
“too expensive and not sustaina-
ble . . . We need to renegotiate the
terms to make sure these projects bene-
fit locals, emit less pollution, and are
more transparent.”
During the election, Mr Najib tried to
emulate Beijing’s tactics overseas by
appealing to the Chinese population —
which comprises a fifth of Malaysia’s
Maritime disputes
ROBIN HARDING — TOKYO
Japan has changed its oceans policy to
concentrate on national security
instead of economic development as
maritime tension with China rises.
The latest “basic plan on ocean policy”,
updated every five years, plays down
hydrocarbon exploration in favour of
improved radar and satellite cover and
ways to protect uninhabited islands.
While the strategy does not mention
China, analysts said it reflected Shinzo
Abe’s desire to make territorial protec-
tion a priority of every department.
“With the maritime situation becom-
ing even more serious recently, the gov-
ernment must act as one to preserve
open access to the oceans, and hold fast
to our territorial waters and maritime
rights,” the prime minister said before a
cabinet decision adopting the policy.
Japan has territorial disputes with
Russia over the Kuril islands, South
Korea over the Dokdo or Takeshima
islets, and China over the Senkaku or
Diaoyu islands.
Although relations with China TA Iare
WA N
improving, Chinese vessels still regu-
larly enter waters around the Japanese-
his Hindu nationalist party, on the
strength of the premier’s charisma.
“It confirms the obvious — Modi is
still gaining political ground,” said Mr
Vaishnav. “His popularity is still pretty
intact, which is astonishing four years
into a government. He is punching
above the weight of his party.”
The BJP, which has traditionally
drawn its core support from the con-
servative Hindi-speaking heartland,
had placed heavy importance on recap-
turing Karnataka, as a coveted foothold
in the more prosperous south, where it
has otherwise struggled to establish
itself. Yesterday, Ram Madhav, BJP
national general secretary, praised Mr
Modi’s “mesmerism” as well as “hard
work and strategy”.
31m people — to back Belt and Road
projects. But Malaysian Chinese such as
Mr Lee and Wong Chen, MP in Mr
Mahathir’s coalition, said that although
they could speak Mandarin, they were
Malaysians who were not seeking — and
would not offer — special treatment.
“Trade with us on a commercial
basis,” said Mr Wong. “We do not want
political deals.”
Although he has met Mr Xi before, Mr
Mahathir, a 92-year-old who veers
between harsh rhetoric and hard-bitten
pragmatism, will have a tough job win-
ning concessions from the Chinese pres-
ident, who has taken an increasingly
assertive foreign policy stance. Beijing
has said little publicly so far beyond con-
gratulating Mr Mahathir on his victory
and arguing that, under his watch, bilat-
eral ties would “move forward in a
steady and sustained manner”.
Zhang Baohui, a professor of political
science at Lingnan University in Hong
Kong, believes Beijing will consider
offering concessions to Mr Mahathir
because Malaysia is so important strate-
gically. “Beijing has a bigger game plan
to maintain the public image in the
region that China’s rise is good for
them,” he said.
Additional reporting by Stefania Palma
Martin Wolf page 11
administered islands, and Tokyo fears
the growth of Beijing’s naval power.
“This is the first time the oceans pol-
icy has explicitly referred to maritime
security,” said Tomohiko Tsunoda, sen-
ior research fellow in ocean policy stud-
ies at the Sasakawa Peace Foundation.
The policy is not a defence document
but a wider statement about how Japan
will manage waters around the archipel-
ago. In the latest edition, maritime con-
500km
RU S S I A Sea of
Okhotsk
CHINA
Kuril
islands
Sea of Japan
N O RT H (East Sea)
KO R E A Takeshima (Dokdo)
SOUTH
KO R E A
Tokyo
J A PA N NORTH
PACIFIC
OCEAN
Senkaku (Diaoyu)
islands
Philippine Sea
Wednesday 16 May 2018
Climate change
Watchdog
fears rise in
air-con units
will push up
gas emissions
ED CROOKS — NEW YORK
The spread of air-conditioning in hot
countries is set to create a huge incre-
ase in demand for electricity, threaten-
ing efforts to curb greenhouse gas
emissions, according to the Interna-
tional Energy Agency watchdog.
Over the next 30 years, air-conditioning
could raise global demand for electricity
by the entire capacity of the US, the EU
and Japan combined, unless there are
significant improvements in equipment
efficiency, the IEA warned.
In a report yesterday, the agency
urged governments to use regulations
and incentives to make air-conditioning
units more efficient to avoid a demand
surge that could strain energy supplies
and increase greenhouse gas emissions.
Fatih Birol, IEA executive director,
said: “This is one of the most critical
blind spots in international energy pol-
icy.”
Air-conditioning has had an enor-
mous effect on the quality of life in hot
regions, but its use is unevenly distrib-
uted globally. About 90 per cent of
homes in the US and Japan have air-con-
ditioning, compared with about 7 per
cent in Indonesia and 5 per cent in India.
Electricity used for cooling in the US is
almost as great as the entire demand for
power in Africa. But hotter countries are
in general growing faster than cooler
ones, with higher incomes leading to ris-
ing demand for air-conditioning.
Populations that are increasingly
urban and older are likely to want more
cooling systems, and if the climate con-
tinues to warm as expected, that will
add additional demand.
Under the IEA’s baseline scenario the
worldwide number of cooling units,
including air-conditioners, fans and
dehumidifiers, is expected to rise from
3.4bn in 2016 to 8bn by 2050. About 2bn
new air-conditioning units are expected
to be installed in China and India alone,
with significant growth also in Africa
where usage today is low.
The result would be a tripling in global
demand for electricity for cooling, from
2,020 terawatt hours in 2016, to 6,200
TWh in 2050, with half that rise coming
from China, India and Indonesia.
Air-conditioning also imposes partic-
ular strains on the electricity grid, bey-
ond the extra demand for power, Mr
Birol said. It tends to increase load on
the system at peak times, as hot weather
means households want to run units at
the same time. It also creates problems
for solar power, when temperatures stay
warm and there is a demand for air-con-
ditioning even after the sun has set.
Those further challenges for the grid
make it more difficult to cut greenhouse
gas emissions from power generation.
Under the IEA’s baseline scenario, car-
bon dioxide emissions solely from cool-
ing systems would almost double from
1.1bn tonnes of carbon dioxide in 2016
to 2.1bn tonnes in 2050, a rise equal to
the entire emissions of Africa today.
There is a wide difference between the
energy efficiency of types of air-condi-
tioning systems, creating opportunities
to curb the growth of electricity use by
using better technology. The efficiency
of air-conditioners in Australia and Sin-
gapore at peak times is much higher
than in the US, Europe, Mexico and
South Africa.
servation and exploration for methane
hydrates are pushed into the back-
ground by security concerns.
It calls on the coastguard and defence
ministry to develop a united informa-
tion system for “maritime domain
awareness” to detect intruding vessels,
illegal fishing and track ballistic missiles
such as those tested by North Korea.
That reflects concerns about the use
of coastguard or fishing vessels to
intrude and dispute control of territo-
rial waters. China and Japan have built
coastguard vessels that outsize many
warships.
The strategy directs resources to sup-
port sparsely populated or uninhabited
outlying islands that are considered par-
ticularly vulnerable to intrusion.
Economic policies, such as fisheries
management, wind power and gas
exploration remain part of the strategy,
as do initiatives to tackle microplastics.
The policy addresses prospects in the
Arctic region, with retreating sea ice
opening the possibility of a north-east
passage to Europe. Japan will consider
buying an icebreaker for research, and
the policy refers to Japan buying Yamal
gas from north-west Siberia.
Wednesday 16 May 2018
Tragic baby symbolises life
and death struggle in Gaza
Family grieves for Palestinian girl while Israel says many terrorists were killed
Mourning: the mother of eight-month-old Leyla al-Ghandour holds her body at al-Shifa hospital’s morgue in Gaza City yesterday — Mahmud Hams/AFP/Getty Images
MEHUL SRIVASTAVA — GAZA CITY
In death, if not in life, eight-month-old
Leyla al-Ghandour belonged to Hamas.
Hours after the girl died, suffocated by
tear gas dropped into a crowd by an
Israeli drone, according to her family
and Palestinian health authorities, her
grandmother huddled against a mosque
wall, trying to catch a last glimpse of the
baby’s face.
Plans for a small funeral were over-
taken by Hamas, the Islamist group that
controls Gaza and has led weekly pro-
tests along the border fence that sepa-
rates 2m hemmed-in Palestinians from
Israeli territory.
Instead, television cameras trailed the
child’s coffin from her home to the
grand mosque and on to a cemetery, as
crowds wailed and pushed the grand-
mother aside. The dead baby’s father
appeared close to collapse. Her mother
wept at home and an uncle yelled into
the microphones demanding justice.
Leyla was one of dozens of Gazans Pal-
estinian officials say were killed by
Israeli troops on Monday during pro-
tests near the fence that divides Gaza
and Israel. Her last hours above ground
capture how life and death in Gaza are
played out in the protracted struggle
between Hamas and Israel.
Cleric poised to attempt purge of Iraqi politics
Sadr has long criticised a
system he blames for graft
and mismanagement
ANDREW ENGLAND — LONDON
Muqtada al-Sadr was the face of Shia
resistance to the US occupation after
Saddam Hussein was toppled. His
Mahdi Army launched deadly attacks
against coalition troops, earning the
young cleric a fearsome reputation.
Later, he turned his ire towards the role
of Iran and the rampant corruption and
incompetence of the Iraqi government.
Now the 44-year-old populist may
have the chance to shake up the political
system he blames for many of Iraq’s ills
and recalibrate what he sees as the
nefarious influence of Washington and
Tehran.
With Sairoon, Mr Sadr’s alliance,
expected to gain the most seats in par-
liament after its surprisingly strong per-
formance in Saturday’s election, he is
well placed to determine the composi-
tion of the next government.
“We want a functioning government
that is led by people who are principled
and are not under the influence of exter-
nal powers,” Dhiaa al-Asadi, a Sadrist
official, told the Financial Times.
Before the vote many Iraqis and ana-
lysts predicted the bloc led by Haider al-
Abadi, the prime minister and Washing-
ton’s preferred candidate, was on course
for victory.
Israel has justified its actions by warn-
ing of the threat Hamas poses to its citi-
zens. Palestinians rage at Israel’s use of
force, while Hamas is using the public
outrage at the deaths as a political tool
against its foe.
The bloodshed coincided with the
controversial opening of a US embassy
in Jerusalem, where Israeli prime minis-
ter Benjamin Netanyahu hosted digni-
taries including Ivanka Trump, US pres-
ident Donald Trump’s daughter, her
husband Jared Kushner and Steven
Mnuchin, US Treasury secretary.
Gaza’s overwhelmed health authori-
ties say at least 60 people were killed,
with thousands wounded either from
being shot by Israeli soldiers or from
inhaling tear gas. It was the deadliest
day in the territory since a war between
Hamas and Israel ended in 2014.
The Israeli military said 24 of the men
it shot were members of Hamas or
Islamic Jihad, both considered terrorist
groups by the US and Israel. Some
attempted to use explosive devices or
shoot at soldiers under the cover of
unarmed demonstrators, the army said.
So far not a single Israeli civilian has
been harmed in the protests that began
six weeks ago. One Israeli soldier suf-
fered slight injuries from shrapnel.
The Trump administration, which
Middle East. Coalition building
But Mr Abadi’s Nasr, or Victory, alli-
ance came in third, preliminary results
show.
In contrast to Mr Abadi, who wel-
comed US troops in the fight against Isis
and balanced the interests of Washing-
ton and Tehran, Mr Sadr has no official
contacts with American or British offi-
cials. He has stated that US troops
should leave the country.
Sairoon’s performance will also cause
consternation in Tehran, which has
since Saddam’s ousting enjoyed varying
degrees of influence over political lead-
ers from Iraq’s Shia majority, and views
Mr Sadr, a former ally, as a maverick.
Last year, he made a rare visit to Saudi
Arabia and the United Arab Emirates,
Iran’s big regional rivals.
“He will be a thorn in the side of the
establishment,” a western diplomat
said. “People hope the establishment
will have to change for the better.”
Mr Sadr’s biggest challenge will be
navigating a fragmented political land-
scape to cobble together a coalition that
can tackle myriad social and economic
problems.
His alliance’s margin of victory is
expected to fall far short of a majority in
the 329-member parliament, meaning
it will depend on deals with rivals to
form a government.
Mr Sadr, the son of a Shia cleric killed
during Saddam’s rule for defying the
regime, is not running for office.
His alliance wants to establish a gov-
ernment of technocrats, rather than one
★ FINANCIAL TIMES
INTERNATIONAL
reversed decades of US policy and infu-
riated the Arab world by moving the
embassy to Jerusalem, also blamed
Hamas for the deaths.
“Hamas is intentionally and cynically
provoking this response,” Raj Shah, a
White House spokesman said.
The death of the protesters domi-
nated coverage of the embassy inaugu-
ration, which should have been a
‘Hamas is intentionally
and cynically provoking
this response’
Raj Shah, White House spokesman
moment of diplomatic triumph for Mr
Netanyahu. French president
Emmanuel Macron condemned “the
violence of the Israeli armed forces
against the protesters”. Turkey and
South Africa recalled their ambassadors
from Tel Aviv, and Ankara asked the
Israeli ambassador to leave for a while.
In Gaza, thousands flocked to a
parade of funerals yesterday. On the
corner of one small street, where Leyla’s
grandmother sat with other grandchil-
dren, the funerals were a marker of how
death in their family almost seemed
inevitable. The entire family of 15, she
based on sects or political groups. But
the danger is that Sairoon, itself an alli-
ance of Sadrists, secularists and com-
munists, ends up in a coalition of com-
peting blocs and their patronage net-
works.
It is a trend that has characterised
Iraq’s nascent democracy since the
2003 US-led invasion and is blamed for
promoting a culture of corruption and
mismanagement that fuels deep disillu-
sionment.
That frustration led to a voter turnout
of 44.5 per cent, Iraq’s lowest in the
post-Saddam era, a factor that worked
in Sairoon’s favour, analysts say.
“It’s true that he has the most seats,
but he doesn’t have the negotiating
power of someone with a commanding
lead.
“And in Iraq, government formation
doesn’t mean the person whose group
Sadr supporters celebrate Sairoon
gains in central Baghdad on Monday
said, had gone to the protest sites each
Friday, egged on by imams and trans-
ported by buses paid for by Hamas. “We
had to go,” she said. “So we went.”
At 10am on Monday, the grand-
mother remembered the entire family
sitting in a tent 500 metres from the
fence when an Israeli drone dropped
tear gas nearby.
Hamas has regularly set up tents for
women and children behind the 300-
metre perimeter that Israel has warned
people to avoid. The family scattered
after being panicked by tear gas, the
grandmother said, and when they reas-
sembled, Leyla could barely breathe.
The child was declared dead at Gaza’s
al-Shifa hospital, and the health minis-
try said she suffocated after inhaling
tear gas. A doctor at the hospital, who
asked not to be identified, said a post-
mortem examination would be closely
examined for pre-existing conditions
before a final cause of death was issued.
At the cemetery, a gravedigger was
paid 150 shekels to dig a hole a metre
deep, a metre wide and 50cm across
When the cameras left, the grand-
mother came back to look at the grave of
the child named after her, and leaning
forward, she whispered at it. “Leyla,”
she said, her voice rising. “Leyla.”
Editorial Comment page 10
wins the most seats necessarily gets to
determine who becomes prime minis-
ter,” said Renad Mansour at Chatham
House, a think-tank.
The leaders of the blocs that won the
most seats in 2010 and 2014 elections,
Iyad Allawi and Nouri al-Maliki respec-
tively, failed to secure the premiership.
Mr Mansour expected “so much com-
promise and so much dispersion of
power that the Sadrists will risk not
being able to bring about real change”.
“The way the electoral system is set
up favours this type of power sharing
which fundamentally means a gap
between the elite and the citizen, under
which the elite share power . . . at the
expense of really trying to reform the
system,” he added.
Mr Sadr’s movement was often at the
forefront of protests against graft and
government ineptitude. But if Sairoon
leads the next government and fails to
deliver, analysts warn that Iraqis’ disil-
lusionment and anger risks stoking
greater instability.
“If the group that is most adamantly
in favour of combating corruption is
incapable or unwilling to do anything
about it, the frustrations could take a
different turn, because people don’t
have a champion,” said Joost Hilter-
mann, director of the Middle East pro-
gramme at the International Crisis
Group, a think-tank.
“If he can put in technocrats, there is a
chance services can improve and minis-
tries are no longer fiefdoms.”
Turkey
Erdogan’s vow to tighten
grip on economy hits lira
LAURA PITEL — ISTANBUL
JONATHAN WHEATLEY AND ROGER BLITZ
LONDON
Turkey’s lira led a broad drop in emerg-
ing market currencies yesterday after
Recep Tayyip Erdogan vowed to take
greater control of monetary policy if he
wins a presidential election next
month.
The sell-off in some large developing
countries was exacerbated by data that
showed the US continuing to streng-
then, persuading investors to shift funds
into dollar-denominated assets.
Signs that the US economy is in robust
health have left fewer investors inter-
ested in emerging markets and
prompted a rethink on weak growth and
mounting debts in countries such as
Argentina, South Africa and Brazil.
Argentina was forced to turn to the
IMF last week after drastic rises in inter-
est rates failed to prevent investors
dumping the peso. However, the move
failed to halt the slide, with the peso
dropping more than 7 per cent against
the dollar on Monday. It steadied yester-
day after the central bank spent $600m
in two hours to shore up the currency
before a $25bn Treasury auction.
Yesterday’s lira sell-off was sparked
by Mr Erdogan, who has shown increas-
ing belligerence towards what he has
called “illegitimate money brokers”
benefiting from high interest rates.
Speaking in London, the Turkish presi-
dent told Bloomberg that after a snap
election called for June 24 he would
have greater control over the economy.
“When the people fall into difficulties
because of monetary policies, who are
they going to hold accountable?”
Mr Erdogan said. “They’ll hold the pres-
ident accountable. Since they’ll ask the
Nuclear deal
Iran central bank governor
targeted by US sanctions
FT REPORTERS
The US Treasury targeted the governor
of Iran’s central bank yesterday as the
Trump administration stepped up
sanctions in line with its decision to
pull out of the nuclear deal.
Washington’s decision to impose the
“highest level” of punitive measures
against Tehran has left EU signatories
struggling to keep the multilateral
accord alive.
The Treasury imposed sanctions
against Valiollah Seif and Ali Tarzali,
another central bank official, for alleg-
edly helping to move millions of dollars
from Iran’s Revolutionary Guard Quds
Force to Lebanon’s Hizbollah, which the
US considers a terrorist organisation.
“It is appalling, but not surprising,
that Iran’s most senior banking official
would conspire with the [Quds Force] to
facilitate funding of terror groups like
Hizbollah, and it undermines any credi-
bility he could claim in protecting the
integrity of the institution as a central
bank governor,” said Steven Mnuchin,
Treasury secretary.
Last week Washington imposed sanc-
tions against a United Arab Emirates-
based currency exchange network that
the US said was funnelling millions of
dollars to the Quds special forces. “Both
actions seek to stifle Iran’s ability to
abuse the US and regional financial sys-
tems,” said the Treasury.
The developments raised pressure on
EU leaders, who are trying to salvage the
2015 deal in which Iran agreed to curb
its nuclear programme in exchange for
the relaxation of economic sanctions.
Foreign ministers from the so-called
E3 signatories to the agreement —
France, Germany and the UK — were
due yesterday to meet Mohammad
Javad Zarif, their Iranian counterpart.
Before the meeting, Mr Zarif said the
parties were on the “right track to make
sure the interests of the remaining sig-
natories” of the nuclear deal, “especially
Iran, [were] guaranteed”.
The European Commission is due to
discuss possible countermeasures to US
sanctions tomorrow, a day ahead of an
The US alleges Revolutionary Guard, above, funded Hizbollah — Atta Kenare/AFP/Getty
7
president about it, we have to give off
the image of a president who’s influen-
tial on monetary policies.”
The lira, which has lost 15 per cent in
the past three months, plunged to its
lowest ever point against the dollar at
one point yesterday. It was 2 per cent
weaker at 4.4530 per dollar at the end of
the London trading day.
The US data, which showed retail
sales rising for a second straight month
in April, sent the 10-year US Treasury
yield to a seven-year high of 3.06 per
cent and hit a range of emerging market
currencies. Brazil’s real fell almost 2 per
cent, South Africa’s rand 2.5 per cent
and the Russian rouble 1.4 per cent,
before paring some losses. JPMorgan’s
index of emerging market currencies
fell 1.4 per cent before a slight recovery.
“It is no coincidence that the appreci-
ation of the US dollar has seen the mar-
ket target currencies of those countries
where macroeconomic vulnerabilities
are most acute,” Paul Greer of Fidelity
said. Turkey has been especially vulner-
able given its large current account defi-
cit, its high levels of foreign currency
debt and its reliance on imported oil.
Dietmar Hornung, Moody’s head of
European sovereigns, said the rating
agency was “a bit concerned” by
Mr Erdogan’s comments.
Foreign investors had hoped Mr
Erdogan would use his three-day visit to
London to reassure the City that he
would allow the central bank to step in
to support the currency, curb double-
digit inflation and tame GDP growth
amid increasing concerns that the Turk-
ish economy is overheating. Instead, his
remarks caused increased jitters.
Additional reporting by Benedict Mander
in Buenos Aires
Investors lose appetite page 25
EU summit that is also expected to
address the issue. In Paris yesterday
Bruno Le Maire, the French finance
minister, and Jean-Yves Le Drian, for-
eign affairs minister, met about 130 cor-
porate executives to urge them to hang
on to their Iranian assets while the gov-
ernment devised an EU-wide response
to the sanctions.
Mr Le Maire and Mr Le Drian told the
executives that the government was
asking the US administration for more
time — as well as exemptions — before
sanctions were implemented.
Companies that attended the meeting
included Airbus, the aircraft maker,
Alstom, the train maker, Total, the oil
group, and Renault and Peugeot, the
carmakers. Representatives of the com-
panies declined to comment on the
meeting because it was private.
“We expressed our determination to
fight so that US decisions don’t affect
French companies,” Mr Le Drian said
afterwards. Mr Le Maire added: “Many
companies in the aeronautics, pharma-
ceutical, energy and automobile sectors
have invested in Iran significantly.”
During the meeting, BPI, the French
state-owned investment fund, said it
was exploring alternative funding chan-
nels. An Airbus representative said that
the aerospace group would not seek an
exemption because many of its aircraft
were made in the US.
A Peugeot representative said it was
unlikely the company would take the
risk of staying in Iran without a waiver.
The carmaker signed a joint venture in
2016 to invest €400m by 2020 and sold
445,000 cars in Iran last year.
A person briefed on the meeting
described the mood among those
present as “basically depressed”. EU
officials cautioned against gaining much
leniency from the US administration.
“There is no magic solution,” said one
official. “There will be a complicated
and comprehensive pattern of options
both at the EU and at the national level.”
Reporting by Anne-Sylvaine Chassany and
David Keohane in Paris, Michael Peel
in Brussels and Kadhim Shubber in
Washington
8 ★
An idiotic ideology skewered by Spike
Spike Lee’s KKK movie
brought much-needed levity
to the Cannes Film Festival,
writes Raphael Abraham
D
is joint is based upon some
fo’ real, fo’ real shit.” You
could almost feel the audi-
ence relax and breath a col-
lective sigh of relief as Spike
Lee’s BlacKkKlansman started up. In
Cannes this past week we have already
had leprosy, child abuse, PTSD and
some nasty blisters — we were ready for
some yucks. Lee’s opening gambit
avoided an earnest tone and promised
laughs, which his film duly delivered —
but that didn’t mean it wasn’t angry.
BlacKkKlansman tells the outlandish
story of Ron Stallworth (John David
Washington), the most unlikely mem-
ber the Klan ever had — a black Colo-
rado cop who talked his way into the
organisation with the help of his white
partner Flip (Adam Driver) — a Jew,
natch. As the pair go about their bizarre
and not undangerous business, the gags
come thick and fast and the tone is more
48 Hours than 12 Years a Slave. The com-
edy is light-touch and Lee and his co-
writers (adapting Stallworth’s mem-
oirs) work hard to maintain balance: a
radical speaker delivers a stirring
speech about black pride, talking of race
war and branding all cops racists, but
then it’s back to our amiable hero, Ron.
Mainstream audiences have embraced
Black Panther but they may not be ready
for the Black Panthers.
Instead the Klan and the idiocy of
their ideology are repeatedly and effec-
tively skewered. They range from a
bunch of blithering, gun-toting red-
necks, around whom Ron and Flip run
rings, all the way up to “Grand Wizard”
David Duke, who shares his theories on
how you can always tell you’re talking to
a black man — while on the phone to a
black man.
But Lee is never shy about making
clear who his other intended target is,
and the satire is not always subtle. Alec
Baldwin (Saturday Night Live’s go-to guy
FINANCIAL TIMES
ARTS
Bizarre: for Trump impersonations) appears
Adam Driver, with veins popping and mouth foaming
left, and John as a prejudice-crazed TV personality
David spewing bigoted bile peppered with rec-
Washington ognisably Trumpian epithets. Else-
in ‘BlacKk- where, phrases such as “America first”
Klansman’. and “return to greatness” emerge fre-
Left: Zhao quently from the mouths of Klansmen,
Tao in ‘Ash Is and one character comments on the
the Purest danger of making white supremacism
White’ palatable “until one day someone like
David Duke is in the White House”.
For the most part the film is feelgood
but at the end that early sigh of relief
proves to have been premature. As if
having realised that he may have let us
off too lightly, Lee includes a chilling
real-life coda: a dark documentary
reminder from Charlottesville of the
dangers of not taking white suprema-
cists seriously enough. It’s as if he wants
to say: I let you laugh at them but don’t
you leave here smiling. AAAAE
Following Joanna Kulig’s perform-
ance in Paweł Pawlikowski’s breathless
Cold War, another captivating female
lead was at the centre of Chinese film
Ash is the Purest White, likewise a strong
Competition contender. Zhao Tao and
her writer/director husband Jia
Zhangke are on a winning streak, and so
it continues with their latest collabora-
tion, which kicks off in a Shanxi gam-
bling den. In the male-dominated
milieu of the jianghu criminal
Perceptive show about perspective
V I S UA L A RT S
Disappear Here
RIBA, London
Edwin Heathcote
Perspective is a representation of the
way we see the world. “Perspective is to
painting,” wrote Leonardo da Vinci,
“what the bridle is to the horse, the rud-
der to a ship.” And, like the horse’s bri-
dle, it tethers us, at least to a particular
view. Renaissance engravings show art-
ists constructing intricate cat’s cradles
of string to illustrate vanishing points,
as if driven to give solid form to an acci-
dent of perception.
Yet even a cursory survey of art from
around the world and through the ages
shows us that the priority given to per-
spective is far from universal. Most cul-
tures depict space as much flatter, a
plane in which things float — think of
Japanese woodcuts or medieval tapes-
tries. So it is stimulating to visit Disap-
pear Here, the new exhibition at the
Royal Institute of British Architects,
which showcases a rich array of archi-
tectural perspective drawings (from the
RIBA’s collection and elsewhere), and
reflects on the broader cultural view-
points that they imply.
Sam Jacob, the architect who has
assembled the show, makes clear from
the start the artifice that underlies the
supposed naturalism of perspective
views, with a series of diminishing open-
ings displayed at the entrance, like a cas-
cade of stage flats in a toy theatre.
Perspective is theatre after all, a set pre-
sented to us as an ideal viewer, tailored
to the eye in front of it.
Beginning with Palladio (represented
by a 16th-century cornice detail) and
moving on through styles as varied as
the rococo and postmodernism, Disap-
pear Here is an eclectic and occasionally
bizarre selection of drawings that
underworld, it quickly becomes clear
that Qiao (Zhao) is not to be trifled with
— and not just because she happens to
be romantically entangled with Bin
(Fan Liao), one of the local big-shots.
Change is afoot in the hierarchy and
accelerated further with the assassina-
tion of the local kingpin, a fan of nature
documentaries and ballroom dancing
who is given a wonderfully incongruous
Strictly-style send-off. Such winking
humour occasionally intrudes — and to
good effect. At one point Bin enjoins
Qiao to “Enjoy the moment” and then —
wham! — promptly takes an iron bar to
the legs (a foreshadowing of worse to
come for him).
The film’s primary theme of shifting
power balances has already been set but
Jia doesn’t allow us to settle in for long.
He gives us one solitary chopsocky
scene (brilliantly executed, as if hinting
at the film he could easily make should
he wish to) but then takes us in another
direction entirely. Increasingly it is not
gangland boundaries that are being
redefined but those of the heart, as Qiao
serves time for Bin and both find their
loyalties tested.
Zhao is magnificent throughout. With
her smile she can project warmth or
daggers, and she seems able to grow
younger or older at will. She has become
one of the finest actors in world cinema
and could be worth an early flutter for
wonderfully shows the evolution of per-
spective. There is John Smythson’s
crude and rather bizarre attempt at per-
spective in an un-executed, early 17th-
century design for a fountain at Bols-
over Abbey, with badly projected
crenellations and a pair of urinating
giants. There is Étienne-Louis Boullée’s
colossal dreamscape of a neoclassical
cathedral from the 18th century and,
from the 20th, there is Edwin Lutyens’
quick and expressive sketch of the unre-
alised first world war memorial arch for
St Quentin Nord.
There are also less conventional
views, including ones looking up (an
exquisite c1700 drawing of a galleried
balcony and ceiling) and looking down
(a 1969-75 — and looking very 2001 —
design by Raymond Loewy for a space-
craft interior for Nasa). Jacob has very
smartly tied all these drawings together
by placing them within a painted con-
struction of lines and planes so that
their vanishing points appear to coin-
cide. It is made clear that these drawings
are all very much a part of a single sys-
tem, a way of seeing.
The show suggests that the rigorous
measurement which that system
Wednesday 16 May 2018
the Cannes Best Actress prize. Head
down to your nearest jianghu gambling
den now. AAAAE
While women have been stealing the
show on screen at Cannes this year, they
have not been as well represented
behind the camera. The festival’s artis-
tic director Thierry Frémaux took flak
for including only three female-made
films in this year’s 21-strong Competi-
tion, and on Saturday this sparked an
eloquent silent protest: 82 women led by
jury president Cate Blanchett assem-
bled on the red carpet — one for every
woman director to have had a film com-
pete since 1946. If the men had done the
same, they would have numbered 1,688
— a devastating imbalance that Fré-
maux pledged to address more robustly
from next year.
Alas, when the first film directed by a
woman finally made its appearance it
failed to reach artistic heights — even if
it touched hearts. Girls of the Sun is a
heavy-handed war drama that follows a
group of Kurdish women insurgents
fighting to reclaim their hometown
from Isis. French director Eva Husson
never quite seems to trust the material
Phrases such as
‘America first’ emerge
frequently from the
mouths of Klansmen
to speak for itself — relying instead on
lingering close-ups of tearful faces and a
blaringly insistent soundtrack — but
mid-film flashbacks to scenes of brutal
captivity are vivid and harrowing and
the tension is well-handled, if squan-
dered later. AAEEE
Alice Rohrwacher, Grand Prix winner
in 2014 with The Wonders, returned to
Cannes and to her native rural Italy with
Happy as Lazzaro, an ambitious and ele-
gantly crafted modern magical-realist
fable. Adriano Tardiolo plays the title
character, a simpleton farmhand with
the angelic face and curls of a painted
Renaissance youth and the wide,
uncomprehending eyes and stiff bear-
ing of Andy Kaufman’s Latka in Taxi.
What begins as a relatively straight-
forward tale of deprived labourers slav-
ing under the harsh yoke of a marquise
dubbed “the poisonous viper” takes
unexpected leaps into mock-religious
fantasy and Buñuelesque satire as Laz-
zaro becomes a latter-day saint and the
labourers exchange agrarian servitude
for the equally pitiless privations of city
life. Rohrwacher’s social critique comes
through loud and clear and a little
didactic but ultimately she over-reaches
herself, sliding through satire and into
whimsical silliness. AAAEE
To May 19, festival-cannes.com
More reviews at ft.com/film
Hans
Vredeman
de Vries,
from his
book
‘Perspective’
(1604-5)
RIBA Collections
entailed was also a crucial element of
the Enlightenment project, one that
coincided with a mercantile view of the
world as a territory to be charted and
exploited. Just as the lines radiate from a
vanishing point, so they radiated on a
map from commercial centres to colo-
nies and trading points across the
emerging maps of the world. As in a
perspective drawing, the organisation
of the whole is defined by reference to a
single viewpoint.
The exhibition concludes with two
separate rooms, one containing the key
treatises of perspective, in the resolutely
old-media form of books, the other by
contrast a specially commissioned
video installation which shows frag-
ments of buildings flying past the viewer
as if on some 3D conveyor belt.
Small and smart, this lovely little
show bristles with unexpected gems.
From an Ernő Goldfinger tower to an
enigmatic view of the Queen’s House in
Greenwich on fire, it beautifully illus-
trates how perspective, while ostensibly
trying to serve reality, has created entire
worlds in itself.
To October 7, architecture.com
Wednesday 16 May 2018
An ultra-nationalist firebrand in his youth, Aleksandar Vucic now sees EU membership as a catalyst for
economic reform and political stability. But to qualify, the president must resolve the status of Kosovo.
F
rom the balcony of his presi-
dential office in Belgrade’s
sombre New Palace, Ale-
ksandar Vucic surveys the
neatly trimmed gardens
below. On this spot, he whispers, King
Alexander and Queen Draga of Serbia
were defenestrated in an army coup in
1903. When the king clung to the balus-
trade his fingers were hacked off; his
wife’s body mutilated.
“There is no Alexander who survived
in power,” says Mr Vucic, with a touch of
melodrama. His words are a not-so-sub-
tle reminder of the constraints the self-
styled moderniser faces as he edges
along the path of economic reform,
political stabilisation and, one day,
potential EU membership.
A previous pro-western Serbian
leader, Zoran Djindjic, was himself
assassinated in 2003, a suspected victim
of organised crime. Serbia’s western
destiny is also far from assured: as a
“swing state” in the Balkans it has tradi-
tionally hedged its bets between the
European powers, Russia and, in the
19th century, Ottoman Turkey.
Moreover, Mr Vucic, a bear of a man
at 6ft 6in (1.99m) tall, remains an
ambiguous figure. He started in politics
an ultra-nationalist firebrand who
vowed shortly after the Srebrenica mas-
sacre in 1995 that “for every Serb killed,
we will kill 100 Muslims”. He served as
information minister under Slobodan
Milosevic, the Serbian leader accused of
‘Another war would ruin
this country and destroy
the future of the Serbian
people forever’
Aleksandar Vucic
war crimes, and espoused Serbian
expansionism in the former Yugoslavia.
But in 2008, Mr Vucic and some col-
leagues broke with Vojislav Seselj, the
radical nationalist ideologue, and
founded the pro-EU Serbian Progressive
party. “You start to ask yourself whether
those [radical] things are the only things
worth fighting for,” he says of his cheq-
uered past.
Today he backs EU membership as a
catalyst for change, final proof that Ser-
bia has escaped the nightmare of the
Milosevic years marked by fanatical
nationalism, the Nato bombing of Yugo-
slavia, hyperinflation and rampant war-
lords. “Another war would ruin this
country and destroy the future of the
Serbian people forever.”
Birthplace of the nation
To qualify for EU membership, how-
ever, Mr Vucic must first resolve the dis-
puted status of Kosovo, the ethnic Alba-
nian-majority southern province whose
2008 declaration of independence from
Belgrade has been recognised by most
western powers. Most Serbs, though,
still regard it as the birthplace of the
nation and the Serbian Orthodox
church. They remain staunchly
opposed to secession. “I’m obsessed
with Kosovo,” Mr Vucic confesses.
“Without resolving that problem every-
thing I have achieved so far won’t be sus-
tainable. The first crisis will kill us.”
Courted by China and the United Arab
Emirates as well as Serbia’s occasional
ally Russia, Mr Vucic, 48, is now seen by
EU leaders, and especially Germany’s
Angela Merkel, as the best bet to bring
his country into Europe’s mainstream.
Critics counter that the EU has struck
a Faustian pact with Mr Vucic. The hope
is that the carrot of membership will
induce reform, with the prospect of join-
ing the EU by 2025. But that means
meeting stiff conditions on strengthen-
ing democratic institutions and tackling
corruption as well as resolving Kosovo.
This year may well prove a decisive test,
starting with a summit of EU and west-
ern Balkans leaders in Sofia tomorrow
intended to inject fresh impetus into the
bloc’s enlargement.
The cynics suspect Mr Vucic is play-
ing along — and that the EU will accom-
modate him in the interests of regional
security. Having won 55 per cent of the
vote in last year’s presidential election,
he is the undisputed master of the politi-
cal arena. Nine television screens in his
office suggest a man who keeps tabs on
everything — and everybody. Some fear
he could end up as another Viktor
Orban, Hungary’s liberal-turned-na-
tionalist leader, who complied with the
EU’s rules to gain membership only to
attack it from within. The parallel, says
Mr Vucic, is “99 per cent crap”.
Another analogy for some is Viktor
Yanukovich, the former Ukrainian
president who played the EU off against
Russia — until he was ousted by a popu-
lar uprising. Mr Vucic was Vladimir
Putin’s guest of honour at the Victory
Day parade in Moscow last week. He
starts his working day at 6.30am with a
Russian language lesson. But he rejects
the idea that he could become a “fifth
★ FINANCIAL TIMES
FT BIG READ. SERBIA
By Lionel Barber and Ben Hall
‘The first
crisis will
kill us’
Aleksandar column for Putin in Europe”. He says he
Vucic, has always been clear with the Russian
president, says president that “Serbia remains on its EU
Serbia is on ‘its path”.
EU path’. Below, Overall, Mr Vucic’s approach owes
an ethnic something to the legacy of Marshal Tito,
Albanian
woman passes
the postwar ruler of Yugoslavia who
founded the Non-Aligned Movement
Serbian police in and performed a balancing act between
1998, and the western powers and the Kremlin.
Serbian
City of culture
Patriarch Irinej
Bloomberg/Reuters
Optimists looking for signs of Serbia’s
EU vocation point to Novi Sad, the coun-
try’s second city, located on the north-
ern plains. Here the Austro-Hungarian
empire left a deeper imprint than the
Ottomans. In 2022 Novi Sad will be the
European capital of culture, a chance to
showcase its thriving arts scene and cre-
ative industries.
Sitting on the terrace of the city’s
4%
Government target
Petrovaradin fortress, looking over the
Danube river, Dusan Kovacevic recalls
for GDP growth in the “explosion of energy” of the 1998
2018 student protests in the city against Milo-
sevic that marked the beginning of his
downfall. Mr Kovacevic now runs the
12.9%
The unemployment
EXIT music festival, one of the largest in
Europe with 150,000 attendees. Each
rate, which has nearly July, it takes over the fortress in an event
halved since 2012 akin to a Glastonbury-on-the-Danube.
EXIT is a showcase for a youthful,
multicultural city that avoided the sec-
30,000
Serbs who leave the
tarian violence that consumed most of
the former Yugoslavia. In Belgrade, 50
country each year miles to the south, a very different river-
side development is taking shape. Along
the Sava river, 100 hectares of derelict
buildings have been cleared for upscale
apartments, luxury hotels and a shop-
ping mall. The €3.5bn Belgrade Water-
front project is backed with Emirati
money (in Serbian government circles,
they refer to “his Highness”, meaning
not Serbia’s Crown Prince Alexander
but Abu Dhabi’s Crown Prince Moham-
med bin Zayed whom Mr Vucic has met
20 times by his own account). But after
bulldozers were sent to flatten buildings
and goons cracked a few heads, the
development triggered the biggest anti-
government protests in 20 years.
Standing on the roof terrace of an
unfinished block of flats, Sinisa Mali, the
young Belgrade mayor, rattles off statis-
tics like a Manhattan real estate sales-
man. Mr Mali, who once worked at
Credit Suisse, is a Vucic party man on
the rise. “The idea of this project was to
create a symbol of change in Serbia. This
is a game changer for us.”
For Mr Vucic’s critics, the Belgrade
Waterfront is a glitzy façade that dis-
tracts from a moribund economy
weighed down by cronyism, corruption
and shady finance. Mr Vucic retorts that
he has run fiscal surpluses for three
years following an IMF programme dur-
ing which he cut pensions and froze
wages. Unemployment has halved to
12.9 per cent. The government hopes for
4 per cent growth in gross domestic
product in 2018, after lagging far behind
much of eastern Europe.
Foreign investors are looking for
opportunities in sectors such as mining.
With encouragement from both Bel-
grade and Beijing, China’s Hebei Steel
took over Serbia’s largest steel plant in
Smederevo east of the capital, saving
thousands of jobs.
Mr Vucic cultivates the image of a
man who gets things done. Some busi-
ness figures agree and generally his
opponents are regarded as weak,
divided and tainted by corrup-
tion. “It’s easy for people to bad-
mouth things and do nothing,”
says Branko Zecevic, a metals
and mining entrepreneur.
One bright spot is a boom-
ing IT sector in Belgrade
which is growing by 30 per
cent a year. But to many it is an
exception that proves the rule:
the growth owes much to a
cadre of highly educated Serbs
who serve foreign clients
under foreign contracts,
unhindered by the state or
government cronies. It is
“employment by PayPal”,
says Goran Gocic, a writer.
The worry is the number of
departing young Serbs —
HU NGARY 100 km
CROAT I A
Novi Sad
RO MA NI A
Belgrade
B OS NI A
AND
HER Z EGOV IN A
SERBIA
MO NT EN EGRO Pristina
B ULGARI A
Mediterranean
KO S OVO
Sea
AL BAN IA MACED O NI A
already running at 30,000 a year, out of
a population of 7m. The exodus, say the
president’s critics, is a grim verdict on
today’s Serbia. Beyond fiscal consolida-
tion and privatisation — no mean
achievements — Mr Vucic has shied
away from cleaning up corruption.
The governing party is estimated to
have some 600,000 members, almost
one-tenth of the population, who also
make up the majority of all public sector
employment. The implication is that
membership — and the payment of
party dues — is a prerequisite for
employment, promotion or a contract.
“If you want to exist you have to enter
the crony system,” says Danica Popovic,
a professor of economics at Belgrade
University. “Everything remains the
same, only the faces change.”
Sasa Radulovic resigned in 2014
as economy minister after four
months when his reform plans
were blocked by the previous
coalition government. A
former businessman, he
describes Serbia as a “party-
ocracy”, where the “ruling
party is looking to get its
hands on any institution,
any source of money over a
certain threshold, any
development that could
weaken their grip on
power”. This pervasive
political control means that
“economically Serbia is
pretty much dead”, he says.
Mr Radulovic’s undiluted
pessimism reflects the frus-
tration of being in an oppo-
sition which Mr Vucic has
relentlessly squeezed, cur-
tailing broadcast airtime and
9
Brussels beckons The EU hopes that
the lure of membership will spur
reform and efforts to tackle corruption
Southern dispute A key issue will be
resolving the status of Kosovo, which
declared independence in 2008
Cronyism burden Critics say the
overwhelming presence of the ruling
party stifles economic development
controlling political messaging through
clever polling techniques.
However, the president does
acknowledge that emigration is a seri-
ous problem, while the economy
remains vulnerable to a change in for-
eign investor sentiment, especially if
regional tensions flare up. “We just need
to get it done and move on,” says Mr
Mali, the Belgrade mayor, referring to a
settlement on Kosovo. “Otherwise eve-
rything will go sour.”
Joining the club
The prospect of EU membership, while
distant, remains a vital factor. For Mr
Vucic, it offers a civilising influence not
just for his country but also the western
Balkans region with an untapped mar-
ket of 18m people, if only political and
economic barriers could be lifted.
For Brussels, EU membership offers
the leverage to demand democratic
standards such as media freedom, plu-
rality and the rule of law which, some
argue, were skated over in the last round
of enlargement to the east, notably for
Bulgaria and Romania.
Tanja Miscevic, a former academic
who is now Serbia’s chief EU negotiator,
says the country will be held to higher
standards than other eastern European
states. “We are the latecomers,” she
says. “On the one hand, it is a tougher
and longer process. On the other, this is
something we have to do for ourselves.”
The most pressing test is Kosovo. EU
officials want Mr Vucic to sketch out
proposals in the coming months to
kick-start talks with Kosovo’s leaders.
The 28-member bloc is not imposing its
own solution because Spain and four
others refuse to recognise Kosovo’s inde-
pendence, largely for fear of setting
secessionist precedents for their own
countries.
Serbia’s foreign and defence ministers
have openly backed the idea of parti-
tion, retaking the northern part of Kos-
ovo where much, but not all, of its Ser-
‘We are not going to give
Kosovo away at any price.
We are in favour of joining
the EU but not if Kosovo is
the price’ Patriarch Irinej
bian population lives. But this is a non-
starter for western powers who fear it
will open a Pandora’s box of border dis-
putes in the region.
Nor are they likely to backtrack on
independence, as some Serbs imagine.
The most likely settlement would
involve autonomy and power-sharing
arrangements akin to Northern Ireland
for Serb-dominated areas, in return for
recognition of Kosovo’s statehood, but
even that would be a step too far for
many Serbs and would still face the hur-
dle of a referendum, where Mr Vucic
could expect fierce resistance from sev-
eral quarters, including the Serbian
Orthodox church.
“Hello,” said Irinej, the 87-year-old
Patriarch, as he welcomed the FT in Bel-
grade. “You are British or American?
Are you going to take Kosovo away from
us? We are not going to give Kosovo
away at any price. We are European. We
are in favour of joining the EU but not if
Kosovo is the price.”
Mr Vucic could still prevail in a refer-
endum, given his political dominance
and grip on the media, says one expert
on Kosovo who declined to be named on
security grounds.
Last March, the expert says, an Ortho-
dox priest was arrested together with a
male religious teacher dressed as a
woman. In their car, the police hap-
pened to discover 27kg of cannabis. It
was too good to be true for Serbia’s
feverish tabloids — and also served as a
message to the Church: oppose us and
we will discredit you.
Mr Vucic says he is not running in a
popularity contest, and has no desire to
be “likeable or loveable”. He casts him-
self not as the last but certainly as the
best hope for his country. “Serbia has
produced more history than it could
consume,” he says, quoting Winston
Churchill, “the most important thing to
keep is peace and tranquillity.”
10
WEDNESDAY 16 MAY 2018
Israel’s disproportionate
response to Gaza protest
Trump encourages Netanyahu to embrace maximalist positions
The idea that Donald Trump deserves
the Nobel Peace Prize looked prema-
ture a few weeks ago when his support-
ers began claiming that the US presi-
dent’s role in triggering talks on North
Korea’s nuclear programme merited
the reward alone. The idea looks gro-
tesque in view of the fresh fires that Mr
Trump has helped to ignite between
Israel and the Palestinians.
Relocating the US embassy from Tel
Aviv to Jerusalem in formal recognition
of the latter’s status as Israel’s capital
was always going to inflame tensions.
This is so, first because of the Palestini-
ans’ parallel dream of making the occu-
pied east of the city their own future
capital, and second because of the city’s
sacred place in all three of the Abra-
hamic religions. Celebrating the open-
ing of the embassy during the 48 hours
when Israelis and Palestinians are most
divided each year in commemorating
their very different versions of history
was little short of diplomatic arson.
The contrast between events in Jeru-
salem and those in Gaza during the past
two days is revealing. In Jerusalem on
Monday, the 70th anniversary of the
birth of the modern state of Israel, Mr
Trump’s daughter Ivanka and her hus-
band, Jared Kushner, mingled with
assembled Israeli and US VIPs as they
cut the ribbon on the new embassy. In
Gaza yesterday, the day the Palestini-
ans commemorate the Nakba, or disas-
ter — when 700,000 were driven from
their land and homes — thousands
gathered to bury their dead.
At least 58 Palestinian protesters
were killed and 2,700 injured on Mon-
day when Israeli soldiers opened fire on
mostly unarmed protesters, some of
whom were attempting to storm the
border fence. Michael Lynk, the UN
special rapporteur on human rights in
the Occupied Palestinian Territory,
described this disproportionate use of
force as an “eye for an eyelash”. It was
A dysfunctional family
reunion at CBS/Viacom
Sooner or later, dual-class share structures cause difficulties
When Sumner Redstone separated CBS
from Viacom in 2006, the former com-
pany looked like an anchor, dragging
down the latter’s growth. Today CBS
looks more like a lifeboat. While a dec-
ade ago Viacom’s cable TV networks
seemed set for years of expansion,
CBS’s broadcast networks have held up
in the age of internet video, as cable has
floundered. It looks hasty to have
traded away scale and diversification
to maximise growth.
So it makes sense that National
Amusements, the Redstone family
holding company — now controlled by
Mr Redstone’s daughter, Shari — wants
to put the two companies back
together. Given that it has voting con-
trol of both, this might appear a simple
matter. Instead, extraordinarily, CBS is
suing National Amusements to stop the
deal from happening. The tale of how it
came to this neatly illustrates the prob-
lems that arise when corporate control
and ownership are not aligned.
National Amusements does not con-
trol CBS and Viacom through a prepon-
derant economic interest. It owns only
one-tenth of the shares in the two, but
those shares have special rights, giving
them 80 per cent voting power in each.
CBS offered to buy Viacom last
month for $12bn — a below-market
price. Perhaps unsurprisingly, Viacom
(its board firmly under Ms Redstone’s
control) pushed back, looking for
another $2bn. CBS’s board is so set
against the idea that it plans to dilute
National Amusements’ control, by
issuing a special dividend of shares to
its other shareholders. The lawsuit
aims to stop Ms Redstone from block-
ing the dividend.
Why does CBS balk at paying more?
The deal, sensibly, is to be completed
all in shares. As such, shareholders in
both companies will share in the cost
savings and other benefits of the deal,
and a control premium for the target is
the deadliest single day of violence in
Gaza since the latest border war
between Islamist militants Hamas and
the Israeli army in 2014. The interna-
tional outcry that greeted the shootings
in Gaza should sound a warning: that
Israel’s claim to the moral high ground
is rapidly leaching away.
Adding insult to this injury, the two
evangelical US pastors invited to say
prayers at the embassy event were reli-
gious bigots noted for controversial
comments they have made about Jews.
Their involvement, and the presence of
other US donors and supporters, is tes-
tament to how Mr Trump used the
occasion to reward domestic support-
ers, who include the religious right.
But in playing to the domestic gallery
he also undermined the main basis for
Israel-Palestine negotiations of the past
decades: the pursuit of a two-state solu-
tion and the pretence of an even Ameri-
can hand in the making of it. As Rich-
ard Haass, president of the US Council
on Foreign Relations, noted, the “US
played a big card for nothing, weak-
ened its claim to be an honest broker
[and] helped to fuel violence”.
Theoretically, the transfer of the US
embassy to Jerusalem does not pre-
clude a Palestinian capital in East Jeru-
salem. But the question is hardly open
when the Israelis are accelerating the
removal of Palestinians from that part
of the city as part of an irredentist push
to resettle Jews on Palestinian land.
Mr Trump has repeatedly promised
that his Middle East envoy, Mr Kush-
ner, is going to unfurl a new peace plan.
But at every opportunity the president
appears to encourage Israel’s prime
minister Benjamin Netanyahu to take
maximalist positions that militate
against peace. This looks less like the
“ultimate deal” that Mr Trump prom-
ised and more like a fresh disaster in
the making. Instead of playing fireman,
America is fanning the flames.
not necessary. The only question is the
proportion of the shares in the new
company that CBS and Viacom share-
holders should receive. A standard way
to determine this is according to the
amount of profit and debt each com-
pany brings to the combination. While
CBS and Viacom bring a roughly equal
amount of both, CBS profits are grow-
ing more strongly than Viacom’s, so its
shareholders rightly expect the bigger
piece of the new company. This reality
is not reflected in Viacom’s share price
only because investors have pushed it
up in anticipation of a deal. CBS, in
short, is quite right not to pay more.
National Amusements says that it
has no intention of “forcing a deal that
was not supported by both companies”.
It is to be hoped that “support” here
refers to support from a majority of
holders on a one-share, one-vote basis.
Otherwise, the court fight could drag
on for years, distracting both compa-
nies as they meet the challenges of a
fast-changing entertainment industry.
This could be disastrous for both if, for
example, opportunities to do other,
better deals slip away.
The benefits of dual-class share
structures, or other devices that
entrench founder or family control, are
not to be brushed off. They allow some
companies to keep their eyes fixed on
the far horizons, without harassment
from markets. Shareholder democracy
is a burden to companies that are well-
run. But for shareholders, this is akin to
the burden of carrying an umbrella.
When it begins to rain — and the drizzle
on CBS and Viacom is getting heavier —
the cost can suddenly seem like one
worth paying.
The most famous shareholder aris-
tocracies today control Silicon Valley
luminaries like Google and Facebook.
They are currently enjoying the sun-
shine. Investors will want to keep an
eye out for storms.
★ FINANCIAL TIMES
Letters
Whistleblowers need more incentives to put careers on the line
Jonathan Ford is quite right to point
out the weaknesses of the current
whistleblowing regime (“Regulators
need to show they care about
whistleblowers”, May 14). The central
question here is thus: why would any
employee put their neck on the line,
solely for the greater good?
The regulator has reached an
impasse here. Whistleblowers are
expected to put their careers and
reputation on the line to provide vital
Backing the drive to
raise basic maths skills
Understanding numbers is one of life’s
key building blocks. The ability to do
simple maths leads to better
employment, improved management
of day-to-day affairs, and reduced
stress (May 12).
Yet almost half of UK adults have the
numeracy level of an 11-year-old. We
know that there is a strong correlation
between poor numeracy, lower social
mobility and fewer life chances, often
for the most disadvantaged members
of our society. Adults who lack the
ability to do simple calculations are
twice as likely to face unemployment,
and can expect to earn a quarter less
than those with basic maths skills. This
is not just an issue for individuals —
poor numeracy costs the UK economy
an estimated £20bn every year
through lower earnings, productivity
and tax receipts.
Every profession or trade requires
some basic maths ability. If we are to
create a workforce that is fit for the
future and that can compete globally, it
is our responsibility, as business
leaders, to help improve numeracy.
That is why we are backing the
inaugural National Numeracy Day on
May 16. We urge others to join us in
supporting this much needed
campaign to improve basic maths skills
and, in the process, help change
millions of lives — and the UK
economy — for the better.
Bill Michael
UK Chairman and Senior Partner, KPMG
John Phizackerley
Chief Executive, TP ICAP
Anne Richards
Chief Executive, M&G
For a full list of signatories, go to:
ft.com/letters
EU still has sway even if
Italy bypasses fiscal rules
I would not agree with Wolfgang
Münchau’s suggestion that if Italy were
to attempt to circumvent EU fiscal
rules by issuing “mini-BOT” debt
instruments designed to be used as
currency, there is nothing that the EU
could do about it (“Italy looks for ways
out of its eurozone fix”, May 14). It may
be true that there are no easily usable
direct sanctions for the borrowing
limits but, as Greece found, it would be
a different game for a country that was
no longer able to borrow easily on the
market and needed active help from
other eurozone states.
The idea that public debt
instruments would not really be debt —
and that the cost of giving them away
free would not be part of the public
deficit in the year of their issue — if
their redemption liability were
somehow documented as a bogus tax
rebate, or with some other reference to
Prince Harry
and Meghan
Markle test our
royal reflexes
Notebook
by Frederick Studemann
information needed for investigations,
and yet are offered virtually nothing in
return.
The significance of this problem
should not be understated. How many
of us, when faced with the threat of job
insecurity, damaged professional
standing and financial ruin would opt
instead to keep our heads firmly below
the parapet? The inconvenient truth,
which the US system has fully
embraced, is that it takes more than a
tax revenues, simply does not hold
water. The Italian non-governmental
Fiscal Money Group made such a claim
on the Letters page on March 23, by
reference to two accounting rules.
One of the rules the group cited —
from the Conceptual Framework to
International Financial Reporting
Standards — bears exactly the opposite
interpretation from the one it claimed.
For it confirms that an obligation to
incur a “significant outflow of
economic benefits” — which surely
includes all debt redemption
commitments — falls within the
definition of a liability. The group also
cited a Eurostat note on accounting (by
companies and by tax authorities) for
deferred tax assets. However, this note
is specific to corporate income tax
parameters and I doubt whether any
reputable accountant in audit practice
would consider it relevant to
accounting for marketable public debt
instruments.
Andy Thompson
Worcester Park, Surrey, UK
Europe could take a
tougher stance on Iran
May I suggest that Philip Stephens is
asking the wrong question (Opinion,
May 11)? One of Barack Obama’s first
acts as president was to extend an
unclenched hand of friendship and
peace to Iran, to no avail. In the years
following, and up to and after he made
the nuclear deal with Iran, its
government sponsored weekly chants
of “Death to America”.
After receipt of over a billion dollars,
Iran continued to chant Death to
America, and it has begun to occupy
Syria and Lebanon and wage war in
Yemen. The relevant question is how
Europe should react to Iran, when it
and not America threatens the world
order.
Michael Bond
Schedler Bond, Mercer Island, WA, US
The argument for keeping
the debate open
The quality of debate in your online
comment sections is high, witty and
intelligent. I have noticed a trend
regarding articles for which comments
are not enabled — they seem to be the
most controversial subjects, including
gender and protests and violence in
Israel and the Palestinian territories. I
understand your reasons for not
enabling comments on these articles,
but I would argue though that it is
exactly these subjects that require
most debate. I feel it is a missed
opportunity to steer clear of allowing
debate on these subjects for fear of
giving your moderators a rather busy
few hours.
David Hepburn
London N4, UK
From the horse-drawn carriages to the
gaudy merchandise, from the fevered
speculation about just who will be
there (or not) to all the anxious
anticipation of the dress, there is
something familiar about the
pageantry and protocol of British
royal weddings.
The cast of characters is pretty
much the same: courtiers with weird
job titles to rival anything the
millennial economy can throw up; the
gaggle of foreign royals — those fourth
cousins once removed with triple
barrel names that few people have
heard of; an over-attentive media
gushing in its support before serving
up the “true” story about past
misdemeanours or present skeletons
in the family closet.
And one must not forget that other
mainstay: the ardent naysayers, the
self-certified radicals for whom it is all
simply “too much” — a vulgar soap
operetta to keep the masses distracted
and in fresh tea towels. To them, the
festivities prove it is high time to end
the whole irrational enterprise.
For others, it’s an opportunity to
display remarkable independence of
mind and quit town (Tuscany is so
nice at this time of year before term
ends and the hordes descend). If you
want to sample the gulf between large
chunks of the British elite and the
wider populace, then their views on
royalty are a good place to start.
The wedding this weekend between
Prince Harry and Meghan Markle
ticks many of the old boxes. Even the
latest twist in the fairytale — the
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
sense of duty for the risk to be worth
taking. In my view, only financial
compensation will reverse the current
trend of declining whistleblowing
numbers, and over time encourage the
most serious issues to be uncovered
and investigated before it is too late.
Recent corporate scandals and failures
suggest the current regime is not
working as it arguably should.
That isn’t to say that these incentives
are perfect — they’re not. However, if
‘Of course I was a young man when I
made Jerusalem the capital of Israel’
A modern means to
solve India’s water crisis
I enjoyed reading Amy Kazmin’s article
about India’s water crisis (“India’s
dried-out rivers feed spate of water
wars”, May 7). But I feel that it suffered
by ignoring the economic background.
There are costs associated with water:
pumping it out of the ground or out of
rivers; purifying it; piping it from one
place to another, including into houses
or village pumps; the construction of
reservoirs; treatment of wastewater;
and its recycling.
Water prices have been increased
very little (by the states) over a 30-
year period. This subsidy is intended to
benefit poorer people, but instead
creates scarcity. As Ms Kazmin wrote,
“water tankers are a lifeline to millions
unconnected to municipal water
supplies”. But she does not make it
clear how the cities’ “water mafias”
exploit the situation.
Low prices lead firstly to wastage,
especially by India’s farmers. Low
prices also mean that there is not
enough money to invest in the
production, treatment and recycling of
water. But in 2018, India has the means
to assist those at the bottom end of
society directly. There is the Aadhaar
system — a biometric identity number
for each Indian citizen, which can be
used for direct benefit transfer —
whose wide use should mean that
water prices can at last reflect water’s
true cost. The solution is in the hands
of the politicians.
Michael Ashfield
High Wycombe, Bucks, UK
Management of the
economy found wanting
What I find disturbing about the dilly-
dallying of the Bank of England on
interest rates is that it is trying to
micromanage the economy over the
short term based on highly unreliable
data (May 13). Gross national product
numbers tend to be adjusted and then
reported decision of the bride’s father
to stay away, following media
revelations about his supposed
connivance with the paparazzi —
bears witness to this.
Only this time something is
different. The sixth in line to the
British throne is marrying a divorced,
bi-racial actor, who is an American to
boot. The couple have chosen a
different style of wedding. No stiff
formal sit-down affair, but a stand-up
reception with posh mini-bites in
bowls. The guest list will be close
family and friends. An American
bishop will be in attendance.
They have also swapped the stately
grandeur of Westminster Abbey for
the more familial setting of Windsor
Castle. Some readers might feel that
the world’s oldest inhabited castle, set
in several thousand acres of exquisite
park and woodland, does not shriek
low key. But royal watchers, who are
doing great business now, say it is a
“significant” and “symbolic” move.
Either way, the setting is certainly
impressive — as I found to my cost a
decade or so ago, when a mischievous
news editor (thankfully now assigned
to higher duties) dispatched me to
spend a drizzly Saturday afternoon on
the roof of the Guards Chapel in
Windsor to report on the wedding of
Prince Charles to Camilla Parker
Bowles.
This wedding is also taking place
while sentiments towards the
monarchy are changing. Kate
Williams, a royal historian, says that
there has been a “shift in attitude”
Wednesday 16 May 2018
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
nothing else, they provide the
individual with a level of security and
knowledge that their actions will not
negatively impact their own
livelihoods, and indeed their families.
I would argue that the
whistleblowing debate is overdue a
revisit by the Financial Conduct
Authority, and perhaps needs to be
considered by other industries, too.
Mark Turner
Duff & Phelps, London SE1, UK
readjusted a number of times. We in
the fund management business find
ourselves under almost perpetual
criticism for short-termism and yet the
BoE indulges in exactly that.
Indeed should the Bank of England
indulge in short-term micro-
management? I am of the view that the
long-term consequences of QE and
particularly of negligible interest rates
are bad (punishing savers, supporting
the insolvent, the inefficient and those
perpetually living beyond their
means). The sooner we achieve a
sensible level of interest rates, which
rewards saving, discourages the
spendthrift but still provides
opportunity for risk capital, the sooner
we will achieve a sensible balance in
the allocation of economic resources.
Dare I suggest that one of the longer-
term consequences of QE is the
stagnation of the economy that we are
now purportedly experiencing?
Alex Hammond-Chambers
Edinburgh, UK
Enact laws that can deal
with difficult situations
There is now a considerable amount of
social-science evidence on the question
of whether a country should allow
unilateral no-fault divorce (May 15).
One of the most important studies,
by Betsey Stevenson and Justin Wolfers
in 2006, examined what happened in
different US states as some, but not all,
of those states brought in unilateral
divorce. The authors found that the law
led to approximately a 10 per cent drop
in the female suicide rate, a 30 per cent
drop in domestic violence and a 10 per
cent drop in the numbers of women
murdered by their husbands. Studies
show that marital breakdowns make
people extremely unhappy for a year
or two. Yet when measured two years
after a divorce both men and women
are, on average, found to be
substantially happier than they were
two years before the marriage split up.
Humans do not have perfect
foresight, so it is best to design social
and legal arrangement that help them
in difficult circumstances.
Andrew Oswald
University of Warwick, UK
Bargaining power
Martin Wolf criticises the Trump
administration for “ridiculous”
demands on China (May 9). The
opinion condemns many of the present
US trade positions, but these are
obviously negotiating positions. Let’s
give the president a chance. Strong
criticism before any agreement is
signed is premature. Perhaps Mr Wolf
should study the bestseller, Trump: The
Art Of The Deal.
Chris Kniel
Orinda, CA, US
over the past decade, driven in part by
the younger, more modern generation
of royals and simple respect for the
Queen, aged 92, who is on course to be
one of the longest-reigning monarchs
in European history. The bleak years
of the late 1990s, when the institution
seemed in peril, have passed. Once
again the British crown is proving its
ability to project an image of
permanence, while changing and
adapting in order to survive.
A further factor cited for the
increase in royal popularity is The
Crown, the wildly popular and classily
executed Netflix television series that
puts on as good a show as the “real”
thing.
But there is a real world dimension
too. Monarchy is proving itself to be
relevant and useful in a time of great
uncertainty — from Britain’s post-
Brexit future to questions about the
integrity of the UK as a whole. At
times, it seems as if the institution of
monarchy is the one part of the UK’s
baroque constitution that is strong
and stable — ironic given that it has no
real power and is defined by an
accident of birth.
The monarchy, and in particular the
Queen, is almost a comforting symbol
of ordered permanence — the
dignified “magic” that the scholar
Walter Bagehot celebrated over a
century ago. How long that can last
and whether the next transition act
will work is unclear. Saturday’s
spectacle may be part of the answer.
frederick.studemann@ft.com
Wednesday 16 May 2018
COMPANIES
Brooke
Masters
T
he pressure is on for WPP
shareholders who care
about governance. The
advertising group recently
parted ways under mysteri-
ous circumstances with Martin Sorrell,
the man credited with building the com-
pany from a wire basket maker into a
global marketing conglomerate.
First the company confirmed that it
was investigating a whistleblower’s alle-
gations of “personal misconduct”. He
denied wrongdoing but then quit
abruptly 10 days later. WPP, which is
treating his departure as a retirement
How the west
should judge a
rising China
Martin Wolf Economics
We must evaluate the views of those
who lead what is likely to become the
biggest economy in the world
T
oday’s advanced countries,
dominated by the US and
Europe, have a preponder-
ant share of the global econ-
omy. The 14 per cent of
humanity that lives in advanced coun-
tries generates 60 per cent of world out-
put at market prices and 41 per cent at
purchasing power parity.
This will not last: as recently as 1990,
advanced countries generated 78 per
cent of world output at market prices
and 64 per cent at purchasing power
parity. The west must accept its relative
decline or engage in a grossly immoral
and probably ruinous struggle to pre-
vent it. That is the most important truth
of our era.
For this reason, above all, westerners
need to consider how those in the rising
powers view the world. It is likely that
China, in particular, will emerge as by
far the world’s biggest economy. We
need to evaluate and assess the views of
those who lead it. Two weeks ago, I pre-
sented what I heard in high-level meet-
ings in Beijing. Now, I will assess what I
heard, under the same headings.
China needs strong central rule
A noteworthy fact was the belief of our
interlocutors that Chinese political sta-
bility is fragile. History suggests that
they are right. The past two centuries
have seen many man-made disasters,
from the Taiping Rebellion of the 19th
century to the Great Leap Forward and
cultural revolution.
It is quite easy therefore to under-
stand why members of the elite seem
William
Frist
H
ealthcare costs are soaring
in the US: total spending is
projected to reach $5.7tn
by 2026. But the debate in
Washington remains stuck
on the subject of who should pay for care
rather than addressing why it is so
expensive in the first place: a lack of pro-
ductivity gains.
Productivity — which measures out-
put per unit of input — has remained
stagnant in healthcare for decades,
despite improvements in almost every
other industrial sector in the US. There
are even indications that the hourly
output of outpatient care has declined
Supine shareholders need to stand up to directors
and paying him £14m for 2017, has
declined to say anything more about the
probe other than to insist the amounts
of money involved were “not material”.
Now shareholders are being urged to
punish the company for the way it han-
dled Sir Martin’s departure. Glass Lewis,
which advises shareholders how to vote
at annual meetings, has recommended
that investors vote against the re-elec-
tion of the chairman over the succession
issue and against the company’s pay
plan. “We believe shareholders are una-
ble to determine the extent to which he
should be treated as a good leaver.”
Institutional Shareholder Services, the
other big advisory firm, has not yet
made a recommendation.
Good governance advocates are hop-
ing that WPP’s shareholders will use its
June 13 AGM to follow the example of
investors in FTSE 250 construction
group SIG. They voted last week to oust
Deloitte after the company admitted
convinced that renewal of the Commu-
nist party, under the control of Xi Jin-
ping, is essential. We must recall that
the upheaval of modernisation and
urbanisation through which China is
now going, destabilised Europe in the
19th and early 20th centuries.
Yet this tightening of control could
derail the economy or generate a politi-
cal explosion in a country containing an
ever more literate, interconnected and
prosperous people. China wishes to be a
huge Singapore. Can it?
Western models are discredited
The Chinese elite is right: they are, alas.
The dominant view among the rest used
to be that the west was interventionist,
selfish and hypocritical, but competent.
After the financial crisis and the rise of
populism, the ability of the west to run
its economic and political systems well
has come into doubt. For those who
believe in democracy and the market
economy as expressions of individual
freedom, these failures are distressing.
They can only be dealt with by reforms.
Unfortunately, what the west is getting
instead is unproductive rage.
China does not want to run the world
On this point, we can express doubts.
For the first time, China will become a
great power within a global civilisation.
Like all great powers before it, China
will surely wish to arrange the global
order and the behaviour of other states
(and private organisations, too) to its
liking. China also has many neighbours,
many of them historically allied to the
US. It is already trying to expand its
AI can solve the healthcare productivity problem
consistently, according to the US Bureau
of Labor Statistics and other studies.
This lack of productivity growth trans-
lates into higher costs for patients
and taxpayers as we pay ever more for
less care.
We need a solution that improves pro-
ductivity without sacrificing quality.
Recently, a number of artificial intelli-
gence applications have been intro-
duced to the healthcare system that
seek to improve quality and efficiency
of care. The vast majority of these new
programs are “assistive”, which means
they help specialist clinicians with
patient diagnosis and management.
Assistive applications can improve
quality of care, but they do not elimi-
nate the need for the time and expertise
of an expensive specialist, and thus do
not address the productivity problem.
That’s why the prospect of autono-
mous AI in healthcare is so exciting.
★ FINANCIAL TIMES
Opinion
repeatedly overstating its profits in pre-
vious years. Such moves generate head-
lines precisely because they are so rare.
Over the past four years, director can-
didates for FTSE 350 and S&P 500
boards have won election with the
approval of more than 97 per cent of the
shares voted, according to statistics col-
Moves to punish
companies generate
headlines precisely
because they are so rare
lected by Proxy Insight, a data provider.
Auditors are generally reappointed with
similarly high levels of approval.
Shareholders tend to be somewhat
less accepting when voting on “say on
pay” resolutions and remuneration
reports — on average, pay resolutions
Developed countries still dominate the economy
Developed countries’ share of global population and GDP, 2017 (%)
25
20
15
10
5 5
0 0
US Developed
Europe
Source: IMF
influence, notably in the South China
Sea. It is also trying to influence behav-
iour, not least of all Chinese students,
abroad. All this represents the inevita-
ble extension of Chinese power abroad.
China is under attack by the US The
Chinese elite is right that Americans
increasingly regard their country as a
rival, indeed a threat. Americans, in
turn, argue that China is attacking
them, by extending its military power
and undermining allies, notably Japan.
The truth is that power is inevitably a
Unless the US breaks
all its commitments, the
current friction will not
halt Chinese progress
With autonomous programs, AI makes
the clinical decision without specialist
supervision. This not only saves time,
but also makes it possible to diagnose
patients in more convenient locations:
primary care clinics and other local
settings.
Autonomous programs
enable a clinical decision
to be made without
specialist supervision
So autonomous AI applications can
increase patient access to care — allow-
ing for early intervention and disease
treatment — but they also promise real
productivity gains. As specialist physi-
cians spend less time triaging patients
and making simple diagnoses, they will
this year have been approved by about
92 per cent of shares voted in both the
UK and US.
In some ways, these levels of approval
are perfectly appropriate. Most compa-
nies are run by directors who show up
and do their job; most financial
accounts are accurate and properly
audited; and most executive pay plans
represent honest efforts to tie long-term
results to reward levels.
But some shareholders have proved to
be passive in cases where a bit more
scepticism appears to be called for. Last
month, shareholders in the UK’s Metro
Bank were faced by complaints that the
bank had paid £21m to InterArch, a
design and architecture company
owned by the wife of its chairman Ver-
non Hill, including £4.6m last year
alone. The payments were all the more
noteworthy because Mr Hill parted
ways with the previous bank he had
founded, Commerce Bancorp in the US,
Population GDP at market prices
Total developed countries:
Population 14.4%
GDP at market prices 60.3%
GDP at purchasing power parity 41.3%
Japan Other
developed
zero-sum game. The rise of Chinese
power will be seen as a threat by the US,
whatever China’s intentions may be.
Many Americans, indeed many west-
erners, do not accept Chinese positions
on Tibet and Taiwan, are suspicious of
China’s intentions and resent its success.
Such mutual mistrust opens the so-
called Thucydides trap of suspicion
between incumbent and rising powers.
US goals in trade talks are incompre-
hensible China is right: they are ridicu-
lous. But within them are genuinely
important issues, notably intellectual
property.
China will survive these attacks This is
almost certainly true. Unless the US
breaks all its commitments and seeks to
impose an economic embargo on China,
the current friction will not halt Chinese
progress, although it may slow it. A
be able to focus on the patients that
need it most.
In April, the US Food and Drug
Administration opened the doors to the
use of autonomous AI. It authorised
Michael Abramoff’s IDx, on whose
board I sit, to start marketing an AI sys-
tem that analyses retina scans and
diagnoses one of the leading causes of
blindness in the US — without the need
for a human clinician to interpret the
results.
Autonomous AI technology also has
the potential to scour retinal images for
early signs of Alzheimer’s and analyse
ultrasound images for early evidence of
foetal complications. More broadly, pro-
grams could look at patient vital signs
and lab results and flag those at risk of
debilitating chronic conditions.
Researchers at Stanford University
have developed an AI-based algorithm
that can identify skin cancer from
in 2007, after American regulators
investigated very similar payments to
InterArch. Although Glass Lewis recom-
mended voting against Mr Hill’s reap-
pointment, he received the thumbs up
from holders of 96.5 per cent of the
shares voted.
Meanwhile KPMG has recently staved
off investor efforts to oust it from the
auditor position at not one but two of its
longtime US clients. Fully 91 per cent of
Wells Fargo shareholders approved the
Big Four firm’s reappointment last
month, despite another Glass Lewis call
for change at the bank, which has been
hit by scandals involving fake accounts
and mis-sold insurance policies.
A larger group of investors took a
stand at General Electric’s AGM after
the US industrial group announced that
the Securities and Exchange Commis-
sion was investigating the way it recog-
nised revenue. But KPMG still won
approval of its reappointment from the
But developing countries have the people
Developing countries’ share of global population and GDP, 2017 (%)
GDP at purchasing power parity
Total developing countries:
Population 85.6%
GDP at market prices 39.7%
GDP at purchasing power parity 58.7%
China Other
developing
India Asia Developing
Europe & CIS
greater threat to China would lie in the
domestic reaction to a far more hostile
external environment. The likely
response would be yet tighter political
and economic control, rather than the
needed shift towards a more market-
oriented, more private-sector-led and
more consumption-driven economy.
This will be a testing year It will. In fact,
it will be a testing century. The right
view for the west to take is that China is a
significant competitor. Its rise will cre-
ate many dilemmas for the west and
especially for the US. But China is also
an essential partner in ensuring a rea-
sonably co-operative, stable, prosper-
ous and peaceful world.
The west needs to think much harder
about how such a world should work.
The US administration’s view — that the
unilateral exercise of US power is all that
images. If it proves reliable, it could be
available as an app — allowing for quick,
early detection and saving a trip to the
dermatologist for false alarms.
But there is still a significant stum-
bling block to wider use of AI: fear.
Many patients — and doctors — are
reluctant to bet their health and wellbe-
ing on algorithms that they do not really
understand. There are also concerns
about the potential for errors and how
to handle the potential liability if a
machine gets the diagnosis wrong.
Without a human expert interpreting
results, autonomous AI requires exten-
sive validation. As we all learnt from the
issues at blood-testing company Ther-
anos, healthcare technology must be
put through clinical trials that test its
diagnostic accuracy, technological relia-
bility and whether it can cope with a
wide range of patient ages, ethnicities
and clinical conditions. The FDA must
11
holders of 65 per cent of shares voted.
Shareholder democracy is often held
up as a key principle of modern capital-
ism. Investor groups cheered when
prominent equity indices decided to
exclude app owner Snap and other new
companies that issue multiple classes of
shares with different voting rights.
Too many shareholders fail to exer-
cise their voting rights, including me.
I’ve just remembered that there is a
proxy ballot for an old employer that is
sitting, neglected, on my desk at home.
Too often, it takes a noisy activist to
pique shareholder interest, as Nelson
Peltz did last year at Procter & Gamble,
and Carl Icahn has been doing recently
at Xerox. That leaves us at the mercy of
self-interested managers and equally
conflicted activists. It’s time to stop
being supine. I promise to fill out my
ballot when I go home. You should too.
brooke.masters@ft.com
25
20
15
10
Latin Am & Sub-Saharan
Caribbean Africa
Middle East
& N Africa
is needed — will fail. It will not manage
the global commons that way, not that
the Trump administration cares about
that, at all. It will also not achieve stabil-
ity: if it doubts that, it should look at the
cauldron that the Middle East has
become after endless interventions.
It is essential for westerners to realise
that our biggest enemy has become our
inability to run our own countries well.
Meanwhile, the only future for an inter-
dependent world has to be based on
mutual respect and multilateral co-
operation. This does not mean accept-
ing every Chinese demand as legitimate.
Far from it. Principled resistance is
vital. But we are moving from a western-
dominated past to a post-western
future. We have to make the best of it.
martin.wolf@ft.com
hold these systems to high safety stand-
ards and demand transparency on how
they reach their clinical conclusions: it
has begun to do so with this first autono-
mous AI approval.
Such a breakthrough should also
usher in a new national debate on how
to most efficiently integrate this tech-
nology into settings where patients will
benefit. We must also consider how to
fund AI applications in a healthcare sys-
tem that is built around paying physi-
cians fees for specific services.
We need to change our billing system
to provide incentives for further invest-
ments in productivity improving tech-
nologies. That way we will be taking the
first step towards taming our ever-
climbing healthcare spending.
The writer is a heart and lung transplant
surgeon, former US Senate majority leader
and a board member of IDx
12 ★ FINANCIAL TIMES Wednesday 16 May 2018

Trump/ZTE: trading blows

Many of the US companies exposed to a trade spat with China are chip and electronics manufacturers. Big
names such as Apple, Nvidia and Broadcom are all vulnerable. Yet smaller stocks are much more exposed,
with China accounting for a high share of sales.

Market value and China revenues Largest revenues from China

Twitter: @FTLex Email: lex@ft.com ($bn) As % of total
12.0 $49bn 40
Apple

Carillion/accountants: rating agencies, are paid by the Home Depot:

11.5
organisations they scrutinise. Such a Nvidia
conflict zone clanging conflict of interest is made Broadcom
30 cold bath

Log of market value

No one has emerged from Carillion’s
downfall with their reputation intact.
Targets in the UK’s final parliamentary
report include the government,
regulators, Carillion’s “self-pitying”
board and the auditors who signed
off its accounts. If failure is more
instructive than success, the British
outsourcing and construction group’s
failure will prove highly educational.
British MPs in the business, and
work and pensions committees want to
see nothing less than a reset of the UK’s
system of corporate accountability.
Such recommendations are rarely
followed to the letter, so this seems
unlikely. But one particular suggestion
carries weight. The case for either
breaking up the cosy Big Four auditors
or splitting audit functions from
non-audit services is gaining strength.
The focus is KPMG’s “complacent”
19-year tenure as Carillion’s auditor. Its
latitude towards unrealised gains and
off-balance-sheet debt help to explain
the yawning gap between the state of
the company’s accounts before and
after it entered liquidation in early
2018. What had seemed a fairly healthy
company, albeit one in a low-margin,
competitive sector, sank with liabilities
of £7bn and less than £30m in cash.
It is now clear that accounting
policies painted an unrealistic picture
of Carillion’s strength. Take debt. Net
debt of £850m at the end of 2016 did
not include more than £750m owed to
banks via the Early Payment Facility in
which suppliers could invoice banks
the money owed to them. Raising
dividends kept shareholders happy but
drained the company of the cash it
needed for day-to-day operations. The
pension deficit was put at the back of
the queue and the balance sheet bulged
with questionable assumptions about
the value of goodwill from acquisitions.
Carillion is not a one-off. And
outsourcers are not alone in providing
estimates that make revenue seem
more healthy than it is. This is why
capital markets rely on auditors. The
Big Four accountancy firms — PwC,
KPMG, EY and Deloitte — will argue
that smaller firms lack their scale and
experience. This is true. But it is also
true that there are, as the report says,
“conflicts of interest at every turn”. It
remains an anomaly that auditors, like
worse by lucrative consulting work too.
An even stricter separation of audit
and non-audit work makes sense.
US sports betting:
grow your own dopes
Californians can now order marijuana
via an app named Eaze, even though
the US attorney-general hates drugs.
New Jerseyans should soon be able to
gamble on sports, despite a federal law
that tried to block it.
Hurrah for vesting power in the
states, and to the Supreme Court for
defending that right when it ruled it
was unconstitutional to prevent New
Jersey legalising sports gambling. Now,
where should investors bet?
As Warren Buffett said of the early
car industry, the better option was to
short horses. Here, the obvious call is
to short the mafia, which has run
sports books in the absence of lawful
alternatives. But that is difficult to do
and probably impolitic.
Investors gravitated to operators that
had already wagered on legalisation.
William Hill, the UK gambling
company, whose shares rose 13 per
cent, in 2013 invested in a venture with
a New Jersey racetrack: a William Hill-
branded bar is just waiting to be able to
take bets. Scientific Games, a US maker
of slot machines, also rose 13 per cent.
In an astute move last year it acquired
NYX Gaming for $600m, adding sports
betting software to its line-up.
The industry is understandably
prone to euphoria. For early movers
ready to capture pent-up demand, that
is justified, with a caveat: the US and
UK do not have a settled view on vices.
For example, New Jersey was offered
an opt-out from the 1992 federal sports
gaming ban, but rejected it, before
voters changed their mind.
It is only a decade since high-flying
UK-listed gaming companies came
crashing to earth, their executives
handcuffed at US airports. It is only
18 months since the then New York
attorney-general Eric Schneiderman
went after fantasy sports operators,
DraftKings and FanDuel. And this
week William Hill is expected to learn
its fate in the UK, where politicians are
set to slash maximum stakes on fixed-
11.0
10.5
10.0
9.5
9.0
10 20
Share of revenues from China (%)
FT graphic Sources: Bloomberg; FT research
The conversation between the
presidents of China and the US
may have gone something like this:
“Nice little tech industry, you’ve got
there, Donald. Shame if anything
happened to it. My cadres are nice
boys but highly strung. If something
upsets them — the wallpaper,
trade sanctions, whatever — bad
things happen.”
President Donald Trump’s
concerns for the employees of ZTE,
the Chinese telecoms equipment
maker hit by US sanctions, suggest
someone hefty had a quiet word with
him. He has asked the Department
of Commerce to reconsider its
punishment of the company for
alleged breaches of prohibitions on
trading with Iran.
odds terminals. The only sure bet is
that the US court’s decision is not the
end of gambling prohibitions.
EasyJet:
ich bin ein barnstormer
Oil up, airline share prices down.
Energy is a major cost for carriers. It
should be that simple. It is not. Crude is
more than $70 per barrel and jet fuel
prices have jumped by a half over the
past year. European airlines’ shares are
also up and have kept up with broader
regional indices.
One of the best performers is easyJet.
With labour issues behind it and
newish chief executive Johan Lundgren
front and centre, the low-cost carrier
10
Maxim Integrated
Products
Monolithic
Power 5 10
0 0
Flex Broadcom
30 40 50 60
Apple Jabil
Chinese workers themselves are
more stoical in the face of patriotic
hardship than US capitalists. US
industrialists are scared of local
competition and intellectual property
theft. But losing foreign markets
frightens some of them even more.
Apple, Broadcom and Nvidia all
earn a fifth of their revenues in China.
Almost 30 US groups, each worth in
excess of $1bn, make at least 15 per
cent of their revenues in China. Their
sales there total $80bn. Two-thirds of
them are chip or electronics groups.
If US statisticians accounted for their
sales appropriately, Mr Trump would
have less cause to feel intimidated.
Analysts such as Brad Setser from the
Council on Foreign Relations argue that
the bilateral trade deficit would shrink
has taken advantage of rivals’ woes.
It should not become too comfortable.
Shares look pricey.
First-half results were well received.
Profits were as the market had
expected. A healthy 10 per cent
increase in revenues per seat coincided
with good cost control. The collapse of
Monarch Airlines late last year, as well
as Ryanair’s forced flight cancellations,
made by far the biggest contribution to
improved sales per seat.
EasyJet also raised its full-year
forecast for profits before tax to at least
£530m. That is almost a third higher
than analysts had expected. The shares
jumped 3 per cent.
That puts them at cruising altitude.
At 16 times forward earnings, including
upgrades to guidance, easyJet is not far
from its five-year peak. This year it has
20
Nvidia Sanmina Cypress
Applied ON Semis Analog Semis
Materials Devices
after adjusting for complex tax
arrangements.
Semiconductors and devices are
the natural battleground for a
commercial cold war. The sector is a
US strength. China consumed three-
fifths of the global semiconductor
output in 2016, according to PwC.
Beijing, aware of the dependence, is
aiming for chip self-sufficiency by
2020. US security concerns reduce
scope for Chinese exports.
Meanwhile, US investors — asset
managers JPMorgan and BlackRock
— are the second and third-largest
holders of ZTE’s Hong Kong-listed
shares, suspended since April.
Never a good idea to pick on a guy
who can absorb and dish out more
punishment than you, Mr President.
the highest valuation of its European
peers. Fuel hedging aside, cost control
is no better than at Ryanair. Labour
productivity is persistently lower at
easyJet, says Bernstein. And capacity is
rising, likely to be up 13 per cent year
on year by September.
Yes, most of that is due to its
purchase of slots at Berlin’s Tegel
airport, following the demise of Air
Berlin last year. But easyJet remains
one of the top contributors to the
growth of seats in European short haul,
after Ryanair and Lufthansa.
Mr Lundgren’s big plan is to build up
easyJet’s holiday business. That comes
as no shock, given his background in
the travel business. Ancillary revenues
may increase. It will not turn many
heads in the City. Expect easyJet shares
to depressurise this summer.
Home Depot, which knows a thing or
two about plumbing, calls it the
bathtub effect: sales that should have
come in the first quarter will just flow
into the second. The retailer reported
a subdued first three months
yesterday, blaming poor weather.
Usually strong US like-for-like sales
growth came in at 3.9 per cent when
the forecast was for 4.8 per cent. Spring
sunshine is supposed to bring out
those shoppers.
Weather excuses are usually the first
refuge of the feckless. On that front,
however, Home Depot deserves the
benefit of the doubt. Old Man Winter
did not depart quickly in much of the
US. More worryingly, though, the
factors that have driven Home Depot
shares up 138 per cent in the past five
years are also experiencing a change.
Research from Credit Suisse shows
the performance of hard goods retail
stocks are most strongly correlated
with the path of interest rates. In Home
Depot’s case, higher rates constrain
home purchases and investment in
home improvement.
Home Depot’s defence is that prices
are still strong in hotspots such as
Seattle and Denver and that mortgage
rates remain below the 50-year
average. The economy remains healthy
enough to support rising home prices.
The strength of the US economy is
also apparent in the company’s ability
to pass on input price increases, which
were notable in lumber and copper.
Home Depot’s average ticket price was
up 5.8 per cent, a big chunk reflecting
commodity inflation.
Shares in the company traded down
more than 1 per cent on Monday. The
concern may have been less on the
sales miss and more on a 1.3 per cent
fall in customer transactions. Quarterly
transactions had not fallen in years;
Home Depot had seemed to be tapping
into millennials, who are belatedly
becoming homeowners. But the risk of
inflation and monetary tightening are
on the horizon, and Home Depot’s
assurances sound complacent.
Bathtubs eventually must be drained.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

CROSSWORD ACROSS
7 Campaign medal pinned on
4 Neither male nor female looks
around forty something when
No. 15,859 Set by MONK extremely dapper clothes (8) seen from the front (7)
8 Tailless bird stopping behind, as 5 He famously bombed southern
      is this? (6) part of an island (6)
10 Without question, Qatar ruling 6 Worker pursuing old car, first to
  
is amended with several points? be waved by chequered flag?
(10) (10)
11 Hostile characters from Burghley 9 US city boxer isn’t ignoring the
  regularly allowed to go out (4) odds up-front (2,5)
12 Congress fanatic, a state 13 Act so, being out of form (4,6)
member appearing before House 16 Liqueur served by small maiden
  
(6) in a northern Caribbean island
14 Reportedly weak man upset one (7)
with an eternal uphill struggle 18 Mostly asthmatic, wretched
(8) apostle (8)
    15 Grass – druggies partook just 19 When coach lectured to make

some of it (7) you cleverer (7)
17 Old hat on single male in cul de 21 Fought, knocking out judge,
    sac (7) getting expelled (6)
20 Feelings generated by online 23 In time, working to gain
crap, perhaps? (8) distinction (6)
22 Tiny little bird taps busily, using 26 Poet separated when half upset
  
tail (6) (4)
24 The last word in army
communications (4)
  25 Points for catching blue sheep Solution 15,858
(10) * / 2 6 6 < 0 $ / $ < 6 , $
27 Native American tool, extremely 5 3 & 1 7 7 1
$ & 7 8 $ / , 1 6 7 5 8 & 7
effective (6) ) , % $ , 5 ' +
28 Jocular, greedy journalist ) 2 2 / $ 1 7 + 5 $ & , 7 (
promises to pay on account (8) , 1 ( 7 , & 2 0
JOTTER PAD DOWN 7
,
5 $
/
1 4
8
8 ,
0
/ /
$
, 7
,
<
& $
1 An old snapper or a large, & $ 7 $ 6 7 5 2 3 + , &
sinister fish? No thanks (3,3) $ 6 1 & , 1 $ &
5 ( 3 / , & $ 7 2 5 ) 5 ( (
2 Dame Elizabeth on source of 7 + 0 6 1 0 , 3
Genesis? (4) , & ( + 2 8 6 ( % ( ' 6 , 7
3 Missing marathon, set to tour 6 5 8 $ 6 0 (
7 5 ( $ 6 8 5 ( , 6 / $ 1 '
Sweden (4-4)
Wednesday 16 May 2018 ★ 13

Cashing in Bookmakers plan to clean up New order Chinese upstarts challenging

as US opens to sports gambling — PAGE 17 Alibaba and Tencent — LOUISE LUCAS, PAGE 14

US wins right to hit EU with tariffs Smart

Money
3 WTO rules Airbus aid illegal 3 Boeing hails victory over rival 3 Brussels vows to comply
companies doing business in Iran fol- cheap loans. “Today’s final ruling sends total 218 claims put forward by the US.
John
PEGGY HOLLINGER — LONDON
PATTI WALDMEIR — CHICAGO lowing Donald Trump’s withdrawal last a clear message: disregard for the rules
$9bn “Today the WTO . . . has definitively Authers
SHAWN DONNAN — WASHINGTON Sum of unlawful
week from a 2015 nuclear accord. and illegal subsidies are not tolerated,” subsidies to Airbus rejected the US challenge on the bulk of
The US has won the right to impose The WTO’s appeals body upheld a said Dennis Muilenburg, Boeing’s chief programmes, EU support to Airbus, and agreed that
punitive tariffs on EU imports after the 2016 ruling that the EU has failed to executive. according to Boeing the EU has largely complied with its
World Trade Organization handed eliminate billions in illegal aid to Airbus The Trump administration called the original findings,” said Cecilia Malm- We need to bury a few market axioms. Years of a “hunt
Washington a victory in the first of two on two aircraft: the A380 superjumbo decision an important victory. “EU air- 204 strom, EU trade commissioner. “Signifi- for yield” appear to be coming to an end. For the first
decisions that could finally end a 14- and the A350 twin-aisle jet. The Euro- craft subsidies have cost American aero- Claims rejected by cantly, it dismissed the vast majority of time since the crisis, the three-month Treasury yield has
year battle over illegal subsidies to Boe- pean Commission said it would take space companies tens of billions of dol- the WTO out of 218 the US claims that this support had at last surpassed the yield on the S&P 500.
ing and Airbus. “swift action” to ensure it was in line lars in lost revenue,” said Robert Light- put forward by the damaged Boeing’s aircraft sales.” For the first time in a decade, cash is beginning to offer
The ruling clears the way for what with the WTO findings. hizer, US trade representative. “Unless US against Brussels The exact amount of allowed US retal- some kind of competition as an asset that might actually
could be the largest retaliatory action in Boeing, which argued that unlawful the EU finally takes action to stop break- iation will be determined by a separate make some money. Meanwhile, the “Dividend Aristo-
WTO history. It also risks exacerbating aid to these two programmes came to ing the rules and harming US interests, process that could take months. The crats” of the S&P 500 — those stocks with the highest and
growing trade tension between the EU $9bn, welcomed the ruling as vindica- the US will have to move forward with WTO will also rule in coming months on most reliable dividend yields — are finding that they
and US over a range of issues, from tion of its claims that European govern- countermeasures on EU products.” whether the US has complied with an now have competition from two-year Treasury note
threatened US steel tariffs to Washing- ments have for decades illegally subsi- However, Brussels also claimed vic- order in 2012 to address its own illegal yields.
ton’s pledge to crack down on European dised the rise of its biggest rival through tory as the WTO rejected 204 of the subsidies to Boeing through tax breaks. This means that the
stocks that had most bene-
The ‘Dividend
fited from the hunt for Aristocrats’ are
yield are no longer as
finding that
Falling volatility Exchanges face share price test appealing. That is true
even though the tough they now have
stock market of the past
three months has helped
competition
With a few exceptions, it has been a good to increase their yields
year to be an investor in the shares of Exchanges and market makers beat US benchmark considerably.
companies at the heart of global markets Share price rebased All of this has pegged back the Dividend Aristocrats
trading. quite significantly: they are down 1.6 per cent this year,
220
Daily activity in buying and selling versus a 2.8 per cent rise in the S&P 500 including the
equities, futures, fixed income and reinvestment of dividends.
foreign exchange on global markets The 53 blue-chip companies that comprise the Aristo-
passes through a series of intermediaries, Virtu Financial crats enjoyed one last big bout of outperformance in
including exchanges and computer- Flow Traders 200 early 2016, as worries over China produced a deflation
driven market makers. Deutsche Börse scare. Ever since 10-year Treasury yields put in their low
Exchanges such as Deutsche Börse, Nasdaq after the UK referendum on EU membership in June
Nasdaq and the London Stock Exchange London Stock Exchange Group
2016, however, and began a steady rise, the Aristocrats
Group alongside electronic market 180 have persistently underperformed.
CME Group
makers Virtu Financial and Flow Traders High-dividend stocks
S&P 500 index
have all enjoyed double-digit share price compared with the world
gains this year, easily outperforming the market as a whole (includ-
The Aristocrats
S&P 500 and Euro Stoxx 50. ing both emerging and enjoyed one
Some of the upswing reflects industry 160 developed markets) are
consolidation, with a key role played by lagging behind when we
last big bout of
the boost to profits from heightened look at MSCI indices. And outperformance
market volatility in the first quarter. if we look at EAFE (the
That strong quarter still resonates, with developed markets out-
in early 2016
140
the share prices of global intermediaries side the US) we get the
remaining near their highs of the year. same pattern. There was never that much of a hunt for
That may not last as, barring another bout yield in the first place, but high-dividend stocks are
of volatility, the first-quarter earnings currently brutally out of favour.
boost shows no sign of being repeated. 120 With cash now offering competition, thanks primarily
Cboe Global Markets’s Vix index — a to the Federal Reserve’s efforts at quantitative tighten-
measure of the S&P 500’s volatility — has ing, the appeal of “bond substitute” stocks is drastically
returned to levels seen before its rise in curtailed, as is the appeal of stocks in general.
February. CME average daily volumes in 100 Normalisation still has a long way to go but if the Fed
interest rate contracts have eased to 7m in wanted more normal conditions then a world in which
April from 15m in February. cash yields more than stocks once more suggests that
Even allowing for an Easter slowdown, the central bankers are getting what they want. To use
some earnings forecasts are exposed, and another market axiom that does not seem to have fallen
a downturn may be more prolonged than 80 out of date, don’t fight the Fed.
the market is betting. There could be Jan 2018 May
painful adjustments ahead. Philip Stafford Source: Thomson Reuters john.authers@ft.com

Uber drops policy silencing sex assault

victims in move to ‘do the right thing’
SHANNON BOND — SAN FRANCISCO legal claims to open court as an alterna- others in the ride-sharing, transporta-
PETER WELLS — NEW YORK
tive to confidential mediation or arbi- tion and travel industries, both private
Uber is scrapping mandatory arbitra- tration proceedings, if they wish. and public, to join us in taking this step”,
tion for people who bring sexual Alleged victims will no longer be Mr West said.
assault or harassment allegations required to sign confidentiality or non- The changes apply only to claims of
against the company, in its latest move disclosure agreements about their sexual assault and harassment, and only
to overhaul its culture. claims, although settlement terms and to individual cases. They apply only in
Caracas crisis adds fuel amounts will remain confidential. the US. Uber will conduct reviews of its
to $100-a-barrel oil race The car-booking company also said that The company also said it would pub- policiescountrybycountry.
it would report more detail about such lish a “safety transparency report” with “Congratulations to Uber for choosing
The effect of fresh Iran sanctions on incidents, part of a wider rethink under data on sexual assault and other inci- not to silence survivors,” said Jeanne
the oil price is well rehearsed, but the new mantra of Dara Khosrowshahi, dents that occur across its services. Christensen, a partner at Wigdor LLP,
the disarray in Venezuela is also chief executive, to “do the right thing, “It’s important to give sexual assault which filed a class-action lawsuit last
significant. The country has the world’s period”. and harassment survivors control of year on behalf of women who claimed
largest proven crude reserves but its The move follows pressure from crit- how they pursue their claims,” Tony assault or rape by Uber drivers.
exports are on the brink of collapsing ics over claims of a culture rife with sex- West, Uber’s chief legal officer, wrote in Uber has long had a policy of manda-
to historic lows below 1m barrels a day. ism and a spate of accusations of assault a blog post detailing the changes. tory arbitration for employees and cus-
Analysis i PAGE 25 by its drivers. Customers, drivers and The company hopes to “open-source tomers in such cases. Critics say such
employees will now be able to take their this methodology so we can encourage policies can be used to silence victims.

Companies / Sectors / People

Companies
Air Berlin.......................................................12
Air France-KLM........................................17
Airbus...........................................................7,13
Alibaba....................................................14,26
Alstom..............................................................7
Amazon.........................................................26
Ant Financial.............................................26
Arcadia...........................................................18
BMW...............................................................25
BT......................................................................15
Bain Capital................................................26
Bank of China...........................................25
Barclays....................................................16,18
Blackstone....................................................13
Boeing............................................................13
Bytedance....................................................14
CATL...............................................................25
CBS..................................................................10
CME..................................................................13
CTG..................................................................16
CYBG...............................................................18
Cambridge Analytica............................14
Capita.............................................................19
Carillion..................................................1,12,19
Chevron.........................................................25
China Com’cations Construction......6
China Three Gorges..............................16
China Vanke...............................................25
Circle Internet Financial......................16
Citadel Securities.....................................17
Commerce Bancorp................................11
ConocoPhillips..........................................25
Credit Suisse................................................9
Deloitte......................................................11,18
Deutsche Bank..........................................18
Deutsche Börse........................................13
Deutsche Telekom..................................15
Didi Chuxing..............................................14
EasyJet...............................................12,18,26
Enel..................................................................16
Energias de Portugal......................16,26
Engie...............................................................16
Eon...................................................................16
Export-Import Bank of China............6
Facebook..........................................10,14,26
Fiat Chrysler...............................................14
Fidelity...........................................................16
First Data.....................................................26
Flow Traders...............................................13
GEM Co.........................................................25
GVC..................................................................17
Gas Natural.................................................16
Geely...............................................................14
General Electric.....................................4,11
Glass Lewis..................................................11
Glencore.......................................................25
Goldman Sachs.........................................16
Google................................................10,14,26
Hargreaves Lansdown .......................18
Home Depot........................................12,26
Hong Kong Exchanges........................18
IBM...............................................................4,18
Iberdrola........................................................16
Idea Cellular.............................................1,15
Iliad..................................................................14
Ind. and Comm. Bank of China......25
Institutional Shareholder Serv’s......11
InterArch........................................................11
Interserve.....................................................19
JD.com............................................................14
Japan Post Bank......................................16
Japan Post Holdings.............................16
KPMG...............................................................11
Kaspersky Lab..........................................16
Ladbrokes Coral.......................................17
Land Securities..................................18,26
Liberty Global......................................15,18
Lloyds.............................................................18
London Metal Exchange.....................18
London Stock Exchange.....................13
Lufthansa.....................................................12
Meituan Dianping...................................14
Metro Bank..................................................11
Microsoft.......................................................13
Monarch Airlines......................................12
Nasdaq...........................................................13
National Amusements.........................10
Nex Group...................................................13
Nissan.............................................................14
Oracle.............................................................14
Orange...........................................................15
PDVSA...........................................................25
Paddy Power Betfair.............................17
Pandora........................................................26
Paytm.............................................................26
Peugeot...........................................................7
Pinduoduo...................................................14
Playtech........................................................18
Premier Foods...........................................18
Procter & Gamble....................................11
Qingdao Haier..........................................25
RCS Media...................................................15
REN..................................................................16
Ryanair...........................................................12
SK Hynix......................................................26
SNC-Lavalin................................................25
Sabadell.........................................................18
Samsung.......................................................17
Scientific Games.......................................12
Slaughter and May.................................18
Snap.................................................................11
SoftBank.................................................16,26
State Grid.....................................................16
Susquehanna..............................................17
TSB..................................................................18
Taveta.............................................................18
Telecom Italia............................................14
Tencent...................................................14,26
Thomas Cook............................................18
Thomson Reuters...............................13,17
ThyssenKrupp...........................................17
Toshiba.........................................................26
Total...................................................................7
Toyota............................................................14
Tui Group.....................................................18
Uber.................................................................13
Verizon Wireless.......................................15
Viacom...........................................................10
Virgin Money.............................................18
Virtu Financial......................................13,17
Vodafone...................................1,14,15,18,26
Volkswagen................................................25
Volvo Cars...................................................14
Volvo Group...............................................14
WPP..................................................................11
Wells Fargo..................................................11
William Hill.............................................12,17
Xerox................................................................11
Xiaomi............................................................14
ZTE...................................................................12
Sectors
Airlines.................................................12,17,18
Automobiles...............................................14
Banks.........................................................16,18
Construction..................................................1
Energy..............................................................3
Financial Services..............................16,18
Financials............................................16,17,18
Industrials................................................17,19
Media..............................................................10
Mining............................................................25
Oil & Gas......................................................25
Property........................................................18
Retail..............................................................26
Support Services.............................1,18,19
Technology..............................11,14,16,17,18
Telecoms...............................................1,14,15
Travel & Leisure.............................12,17,18
Utilities...........................................................16
People
Allaire, Jeremy...........................................16
Asher, Joe....................................................17
Bermingham, Colin.................................18
Bittar, Christian.........................................18
Bloomberg, Michael.................................6
Bohart, Sisse...............................................18
Carnwath, Alison......................................18
Colao, Vittorio.............................1,15,18,26
Couderc, Anne-Marie............................17
Elbers, Pieter..............................................17
Gagey, Frédéric.........................................17
Gertler, Dan................................................25
Green, Philip...............................................18
Hill, Vernon..................................................11
Hogg, Cressida.........................................18
Icahn, Carl.....................................................11
Jae-yong, Lee............................................17
Jaeger, Nicolas..........................................14
Janaillac, Jean-Marc...............................17
Kerkhoff, Guido.........................................17
Khosrowshahi, Dara...............................13
Kleisterlee, Gerard.....................................1
Kramer, Achim...........................................18
Lombardini, Maxime..............................14
Lundgren, Johan.................................12,18
Moryoussef, Philippe.............................18
Niel, Xavier..................................................14
Noel, Rob......................................................18
Palombo, Carlo..........................................18
Peltz, Nelson...............................................11
Pester, Paul.................................................18
Read, Nick.................................................1,15
Redstone, Sumner..................................10
Reynaud, Thomas...................................14
Sago, Katsunori........................................16
Samuelsson, Hakan................................14
Soros, George..............................................4
Sorrell, Martin.............................................11
Terner, Franck............................................17
Weizer, Mor.................................................18
Zuckerberg, Mark....................................14

© The Financial Times Limited 2018 Week 20

14 ★ FINANCIAL TIMES Wednesday 16 May 2018

COMPANIES
INSIDE BUSINESS
Technology
ASIA

Google hit by data probe in Australia Louise

Watchdog explores claims
that Android device users
had details harvested
JAMIE SMYTH — SYDNEY
Australia’s competition watchdog said
yesterday it was investigating Google
over reports that it was harvesting vast
amounts of personal data from Android
smartphone users to sell targeted
transfer in their monthly phone bills,
according to Australian media reports.
“The ACCC met with Oracle and is
considering information it has provided
about Google services,” said ACCC. “We
are exploring how much consumers
know about the use of location data and
are working closely with the privacy
commissioner.”
The investigation was part of a wider
inquiry by Australia’s competition
watchdog into the market power of
Lucas
track a user’s exact location even when The group tactics, this presentation is sleight of
location services were turned off and hand, not facts, and given that Oracle
said users
the phone had no sim card, according to
the Oracle presentation.
It showed how Android devices trans-
were free to
markets itself as the world’s biggest data
broker, they know it,” said Google.
Oracle said it did not have a comment
Alibaba and Tencent
mitted addresses of mobile phone tow-
ers, WiFi stations and bluetooth net-
disable the
location
and had not published the presentation
it provided to the ACCC.
ease newbies aside to
works back to Google servers. Baromet-
ric sensors embedded into Android
handsets could tell Google which floor of
service, and
Rod Sims, ACCC chairman, told The
Australian he found the Oracle presen-
tation interesting and the watchdog was
maintain lead in China
a building a user was on, said Oracle.
data sent to “certainly going to follow up”.
Google said tracking of data by the Google’s Mark Taylor, a legal expert at Univer-

advertising.
The probe followed information sup-
plied by US software company Oracle,
which reportedly told the Australian
Competition and Consumer Commis-
sion (ACCC) it believed Android devices
transferred up to a gigabyte of data,
including detailed location information,
every month to Google.
Mobile phone users paid for the data
Google, Facebook and other digital plat- company was done with the permission
forms and how this was affecting the of users, who could see what data was
advertising and media industries. It collected and how it was used. In a state-
came as global regulators boosted scru- ment the company said users could con-
tiny of big tech groups, whose power was trol their data and were free to disable
highlighted in the 2016 US election. Google’s location service, adding that
The report, first published by The the data sent back to Google’s servers
Australian newspaper, said smart- was anonymised.
phones and tablets running Google’s It accused Oracle of not sticking to the
Android operating system continued to facts. “Like many of Oracle’s corporate
Automobiles. Stake sale
C
servers was sity of Melbourne, said it was not just a
question of whether users signed a pol-
anonymised icy when they took out a contract, giving
Google permission to collect data.
“If consumers don’t know how data
will be used once it has been collected,
and don’t realise the cost implications
for their data plans, then there is a ques-
tion to be answered about whether any
permission is adequately informed.”
hina’s pre-eminent tech duo of Alibaba and
Tencent are approaching their 20th birthdays
— still reasonably youthful, but old enough to
have spawned an entire new generation of
internet Wunderkinder.
The young start-ups include ride-hailing app Didi Chux-
ing, smartphone maker Xiaomi and Meituan Dianping,
which delivers food and other services. These are valued at
a combined $132bn, according to CB Insights. But as these
companies diversify and command ever higher valua-
tions, could they dislodge the leaders?
The consensus, much of it with vested interests, believes
not. The more established start-ups like Didi lack their
predecessors’ breadth and, hence, the ability to tie users in
to anything like the same extent as either Tencent or Ali-
baba, both of which are also investors in Didi. Where Didi

Geely sets $30bn valuation bar for Volvo IPO
Chinese owner tells would-be
lead underwriters it will not
sell unless level is reached
PETER CAMPBELL
MOTOR INDUSTRY CORRESPONDENT
Volvo’s owner Geely will only proceed
with an initial public offering if it
achieves a valuation of more than
$30bn for the Swedish carmaker,
according to two people familiar with
the details.
The Chinese group, which also con-
trols Lotus and black taxi maker LEVC,
told banks applying to be lead under-
writer on an offering that it wants to
achieve a $30bn-$40bn valuation for
the company.
The owner will not sell if the value
falls below $30bn, the banks were told,
in spite of the figure being considered
lofty by industry standards and high
compared with many larger rivals.
It would value the carmaker at 10
times its earnings, which compares
to two to three times for BMW and
Daimler, the owner of Mercedes,
according to calculations from Arndt
If an IPO goes ahead, the
bulk of proceeds will be
reinvested into electric and
self-driving technology
Ellinghorst, analyst at Evercore ISI.
Geely said an IPO remains an option
but declined to comment further.
Progress will be laid out at a Volvo
Cars board meeting this month.
If an IPO goes ahead, Geely will sell
down its shares, although it will remain
the largest shareholder, said the people,
who declined to be named. The bulk of
the proceeds from the IPO will be re-
invested into Volvo’s efforts to develop
electric and self-driving capabilities.
The carmaker has made an ambitious
pledge that every new model will only
contain electric or hybrid technology
from next year, although as a smaller
player in the market it needs to invest
disproportionately more into the tech-
nology compared with its bigger rivals
who can spread investments across a
larger number of vehicles.
Mr Ellinghorst said: “We don’t see a
higher multiple for Volvo as totally
unreasonable, given the potential for
growth which will undoubtedly be the
key pillar in the equity story.”
But Volvo “won’t be immune to the
challenges of regulation (ie: electrifica-
tion) and digitalisation that drag down
valuations of traditional premium car-
makers”, he added.
Volvo last year sold 570,000 cars,
Wheels of
fortune: Volvo is Never again
able to keep all
of the profit it
Swedish carmaker to
generates in abandon diesel engines
China because
its owner is a Volvo Cars said it would never launch
local company another diesel model as mounting
Ng Han Guan/AP
technology costs push the Swedish
carmaker towards a future making
only electrically powered vehicles.
The S60 saloon to be launched this
year would be the first Volvo in
decades built without a diesel engine,
said chief executive Hakan
Samuelsson. The move is the first step
towards fulfilling Volvo’s pledge that
all new cars launched next year would
contain only hybrid or full-electric
technology, the first major carmaker to
pledge to phase out vehicles powered
solely by internal combustion engines.
“We’re not saying diesel is more
dirty, but it’s more complicated and
more expensive,” Mr Hakan said.
Diesel engines emit less carbon
dioxide than petrol equivalents, but Mr
Samuelsson said new petrol hybrid
technology would match current diesel
in terms of output, making the engines
equally environmentally friendly.
He added the cost of making diesel
engines compliant with new emissions
rules was rising, with the need for the
chemical urea to be injected into the
system to reduce poisonous nitrogen
oxide pollution from the engine.
“Diesel will be more complicated for
more consumers, and much more
expensive too,” he said.
He said lower fuel consumption was
the “only advantage of diesel”, but that
“you can get that back with a
mild-hybrid engine”.
While Volvo would carry on selling
the diesel cars currently in its range, it
would install hybrid systems in the
vehicles as soon as they were ready,
and would cease investment in a new
range of diesel engines, he said.
Volvo is the latest carmaker to
phase out diesel, following Toyota, Fiat
Chrysler and Nissan, caused partly by
a collapse in sales of diesel cars in
Europe. Volvo Cars, owned by China’s
Geely, is separate from truckmaker
Volvo Group, which makes diesel
heavy-duty haulage trucks.
Peter Campbell
much smaller than sales of about 2m
enjoyed by its larger German rivals.
But Volvo has the advantage of unfet-
tered access to the Chinese market,
which is the world’s largest region for
car sales and also a huge basket of profit.
All of Volvo’s main international
rivals — BMW, Daimler, Audi, Lexus,
JLR and Cadillac — access the market
through joint ventures that include
sharing profit with a local producer.
Because Volvo’s owner is a Chinese com-
pany, the business is able to keep all of
the profit generated by its Chinese sales.
Philippe Houchois, car analyst at Jef-
feries, said the company’s value was also
likely to reflect a number of other
investments it has. This includes a
30 per cent stake in Geely’s new brand
Lynk & Co, the breakout of the all-
electric Polestar performance brand, a
deal to sell hardware to Uber for use in
robotaxis, a 50 per cent stake in self-
driving technology company Zenuity
and a joint venture with autonomous
group Autoliv to develop driverless cars.
Reports on Bloomberg said invest-
ment banks were seeking a valuation of
$15bn-$30bn for Volvo.
Geely paid $1.8bn in 2010 to buy
Volvo from Ford.
is branching out, into areas such as autonomous driving, it
is doing so within its core business.
Xiaomi, which is due to launch an initial public offering
in Hong Kong in July, has sought to create a similar ecosys-
tem to the Chinese behemoths — but it is far smaller. Ten-
cent-backed Meituan is the closest contender, having
recently added ride-hailing services to its suite of offer-
ings, but it too is on a much smaller scale.
More interesting, perhaps, are the newest challengers:
the next generation of start-ups snipping at specific areas
of relative weakness at the big tech conglomerates.
Ecommerce company Pinduoduo spotted a niche in
value-focused shopping and rushed in, elbowing out
JD.com to become the number two player in the country in
terms of transactions. It has done so by finding under-
served niches and meeting their needs — in this case, bar-
gain-basement priced goods for rural residents and those
in smaller cities.
Tech company Bytedance first grabbed attention with
Toutiao, the country’s biggest news aggregator. Its video
app Douyin has also taken China by storm, capturing
124m monthly users since it was launched 18 months ago.
That success has nudged Alibaba and Tencent into raising
their stakes in the short-video streaming service.
But not even these are seen as upsetting the old order:
rather, one industry player
dubs this third generation
“roman candles”, a reference
The duo have
to the fireworks that flare assiduously
brightly before quickly fiz-
zling out.
invested in the
There are several reasons. next generation
First, Tencent and Alibaba
have assiduously invested in
of tech groups
the next generation of tech-
nology companies: Tencent alone has a portfolio of more
than 600 stakes and holdings across a range of sectors and
industries.
Second, the giants have built not just conglomerates but
ecosystems. Whether your app is selling music or restau-
rant reviews, you need traffic, which means plenty of start-
ups are perfectly happy to work on their platforms.
This symbiotic relationship is important to keeping
start-ups on side, and turning them into revenue-spinners
and investments. Ultimately, Alibaba and Tencent want to
keep users on their platforms as long as possible — and the
more entertaining apps they have, the easier that is to
achieve.
Third is political. Beijing prefers to regulate a few big
players rather than shoals of unruly ones. Peer-to-peer
lending, for example, offers a graphic illustration of what
can happen when multiple players are unleashed: the sec-
tor has been hit by Ponzi schemes, evaporating funds and
angry investors. Hence, the People’s Bank of China, the
country’s central bank, continues to clamp down on the
financial technology sector, moving last week to require
balances held in customers’ electronic wallets to be lodged
in a central custody account.
The same is true of content platforms. Censorship
against information labelled “subversive” has ramped up
this year. It even ensnared the children’s cartoon character
Peppa Pig, which was banned from Douyin after authori-
ties declared that it was being used subversively in user-
generated content.
Beijing also prefers a tight band of champions so that the
country can forge ahead in areas prioritised by the state,
such as artificial intelligence.
Of course, politics cuts both ways: as plenty of one-time
high-flying companies have discovered, a change in the
political winds can quickly clip corporate wings. Tencent
and Alibaba have both had brushes with the state, despite
treading a careful line.
But that wild card apart, the duo look sufficiently
entrenched to celebrate a few more birthdays as leaders of
the Chinese internet.
louise.lucas@ft.com

Technology Telecoms

MPs round on Facebook in leak investigation
HANNAH KUCHLER — SAN FRANCISCO
The UK parliamentary committee pro-
bing the Facebook data leak to Cam-
bridge Analytica has accused the social
network of failing to answer its ques-
tions, calling again for chief executive
Mark Zuckerberg to testify.
In answers to the committee’s 39 ques-
tions, Facebook revealed there were
more than 10m social plug-ins — 8.4m
“like” buttons and 2.2m Facebook pix-
els — that tracked users’ behaviour on
other sites during one week in April.
This is the first time it has made the
numbers public since politicians on
both sides of the Atlantic raised con-
cerns about its ability to collect user
data away from the site. It added it had
restricted data collection by 370,000
apps in 2017, and rejected almost half
the apps that asked to collect data
beyond the basic options since 2014.
But Damian Collins MP, chair of the
digital, culture, media and sport com-
mittee, said it was “disappointing” that
a group with the resources of Facebook
did nor answer questions with a “suffi-
cient level of detail and transparency”.
“If Mark Zuckerberg truly recognises
the ‘seriousness’ of these issues as they
say they do, we would expect that he
would want to appear . . . and answer
questions that are of concern not only to
parliament, but Facebook’s tens of mil-
lions of users in this country,” he said.
Facebook did not fully answer several
questions, including who was in charge
when it decided not to tell users it had
discovered the leak in 2015, and who
knew about the leak in February 2018,
when the committee questioned it
before media reports prompted it to
confirm the leak.
Separately, Facebook yesterday
reported comprehensive numbers on its
policing of controversial content for the
first time, saying it “took action” in the
first quarter of this year on about 2.5m
pieces of content published on its plat-
form involving hate speech.
Iliad shares plummet after earnings setback
HARRIET AGNEW — PARIS
Shares in Iliad closed down almost
20 per cent yesterday — their largest-
ever drop in a single day — following
the French telecommunications group
reporting disappointing first-quarter
earnings a day after unveiling a man-
agement shake-up aimed at rebooting
the business.
The group, controlled by billionaire
entrepreneur Xavier Niel, said that rev-
enues were up only 0.8 per cent to
€1.2bn in the first three months of the
year, lower than analyst consensus
expectations of €1.23bn.
The company blamed heavy promo-
tions by rivals and the negative impact
of a higher VAT rate. The number of
broadband subscribers dropped 19,000
in the first quarter to 6.5m, marking the
first decline in the company’s history.
The net number of mobile customer
additions of 130,000 also fell short of
consensus expectations of 171,000.
Iliad burst on to the mobile scene in
France six years ago with low-cost pack-
ages that sparked a price war.
The company controls almost a quar-
ter of the fixed-line and 17 per cent of
the mobile market but analysts ques-
tion whether it can maintain that pace
of growth. “Iliad always traded at a pre-
mium to the rest of the sector thanks to
its superior growth,” said Stephane
Beyazian, an analyst at Raymond James.
“However investors are starting to ques-
tion the valuation if Iliad can’t continue
to grow at the same speed and differen-
tiate itself from its peers.”
Iliad’s disappointing results came
after the company announced a man-
agement restructure to accelerate the
group’s growth in France and Italy.
Thomas Reynaud, chief financial
officer, has been promoted to chief exec-
utive, replacing Maxime Lombardini,
who will become chairman. Mr Rey-
naud will be replaced as CFO by Nicolas
Jaeger, the company’s treasurer and
head of investor relations.
Wednesday 16 May 2018
Vodafone chief
bows out after
‘remarkable
transformation’
Successor has tough act to follow after Colao
turned group into a European champion
NIC FILDES
TELECOMS CORRESPONDENT
When Vittorio Colao took over as chief
executive of Vodafone in 2008, he inher-
ited a company in danger of imploding.
The tenure of his predecessor Arun
Sarin had been marked by a botched
attempt to buy the mobile operator
AT&T Wireless of the US and a spectac-
ular boardroom bust-up that had left
deep scars at the UK-based telecoms
group. The company inherited by Mr
Colao was a disparate set of assets held
together by a tenuous thread.
The Italian set about a 10-year pro-
gramme to reshape Vodafone into a
modern telecoms company. It now
boasts the fastest growth in broadband
in Europe and, in his words, is now a
“European champion” capable of taking
the fight to rivals Deutsche Telekom,
Orange and BT.
Mr Colao’s tenure has been marked by
lucrative exits from markets including
France, China and the US, tidying up its
sprawling assets in Africa and merging
with rivals in tough markets including
the Netherlands and Australia. The
$130bn in proceeds from the sale of its
stake in Verizon Wireless was the most
eye-catching disposal not only for its
size but also because it bankrolled a
huge network investment programme.
But Mr Colao did not want to sign off
as CEO without driving a big deal of his
own, according to people with knowl-
edge of his thinking. The €18bn acquisi-
tion of Liberty Global’s German and
eastern European cable networks — the
company’s largest takeover since the
turn of the century — was duly delivered
last week. That deal, along with the
merger of Vodafone’s struggling Indian
business and its local rival Idea Cellular
set to be completed in June, paves the
way for his exit.
Mr Colao confidently reeled off a list
of big numbers yesterday as evidence of
the successful transformation he had
managed. He divested €116bn of busi-
nesses and spent €49bn on acquisitions.
He invested €100bn in Vodafone’s net-
work and returned €120bn to investors.
“We have taken a company that was
mostly consumer, mostly wireless with
minority stakes and holdings every-
where. We have turned it into a power-
house of convergence with controlled
businesses and a strong enterprise busi-
ness. This transformation has been
remarkable,” he said.
“When you invest €150bn in 10 years,
you don’t have much to regret.”
There have been times that Vodafone
has been criticised for an inconsistent
operating performance during his ten-
ure with little revenue growth until this
year and a number of its units — notably
Spain, India and the UK — struggling at
times. That has been masked, however,
by strong shareholder returns.
Mr Colao will have spent almost 20
years at Vodafone when he leaves in
October. The Brescia-born son of an
officer in Italy’s Carabinieri was a con-
sultant at McKinsey before helping to
establish Omnitel, a mobile operator set
up in Italy to challenge the incumbent
★ FINANCIAL TIMES
COMPANIES
Vittorio Colao: set about a 10-year programme to reshape Vodafone into a modern telecoms company — Jason Alden/Bloomberg
Moving out of its Asian emerging
market to focus on Europe
Other
India
Vodacom
(Africa)
Other Europe
Spain
UK
Italy
Germany
FT graphic Sources: company; Thomson Reuters Datastream
Numbers man gets the call
Veteran with experience
overseas seen as natural fit
Nick Read, who will take over at the
UK’s largest telecoms company in
October, has spent 16 years working his
way up the ranks at Vodafone.
He has run the UK business as well
as its Africa, Middle East and Asia-
Pacific operations before becoming
group chief financial officer four years
Vodafone’s stock performance
under Colao
Share price (pence)
ago. Mr Read, 53, joined in 2002 as CFO Middle Eastern arm during the Arab
of the UK business after a decade at Spring Vodafone was criticised when it
FedEx and a short period at UBM, the sent out a text message on behalf of
media group. He was promoted to run the Egyptian government telling
the UK business in 2006 and is customers to respect a curfew.
remembered for two key moments. The rapid rise of the M-Pesa mobile
First, he chose to pull Vodafone out phone payment system, first launched
of Carphone Warehouse, the electronics in Kenya, also marked Mr Read’s tenure
retailer, in a dispute over commissions heading Vodafone’s African strategy.
in 2007. However, the company lost The move back into accounting
customers and went into freefall before proved a natural fit for Mr Read and
it signed a new deal two years later. investors believe it prepared him for
When he was running the African and one of the biggest jobs in the FTSE.
15
Telecom Italia. That company was part-
owned by Mannesmann, the German
telecoms group that Vodafone acquired
for £112bn in 2000.
Christopher Gent, chief executive of
Vodafone from 1997 to 2003 who built
the company into a global powerhouse,
said it was immediately obvious that the
young Italian was a potential leader of
Vodafone. “When we were discussing
the integration of Mannesmann, he
argued that what we needed was pas-
sion. One or two of my Anglophile col-
leagues asked whether ‘passion’ was a
bit much but he was right,” he recalled.
Mr Colao had a stint running media
company RCS Media, owner of La
Gazzetta dello Sport, before returning to
Vodafone as Mr Sarin’s heir apparent.
Julian Horn-Smith, a former deputy
chief executive of Vodafone, praised the
Italian’s job. “He oversaw a major
change in the industry when being a
straightforward wireless player has
become more complex,” he said.
Sir Chris agreed that Mr Colao had
navigated the company through a tough
period for European telecoms. “I was
CEO during the go-go days of growth.
‘When you invest
€150bn in 10 years, you
don’t have much to regret’
Vittorio Colao
Life has been much more difficult for
Vittorio and he has done it all with con-
siderable skill,” he said.
The Italian said he would remain in
post until October to lead the battle for
regulatory clearance of the Liberty Glo-
bal deal, which faces a hefty fight from
Deutsche Telekom. It will then be up to
the new team to write the story of Voda-
fone, which he sees as a five-year task.
Mr Colao will hand over to Nick Read,
chief financial officer for the past four
years and long-time Vodafone veteran.
Although Mr Read is seen as the conti-
nuity candidate, he said his job will be to
deliver the efficiencies and growth from
the platform that Mr Colao has built.
Victor Font, chief executive of advi-
sory firm Delta Partners, said the chal-
lenges for the new CEO will be whether
he maintains a centralised structure or
devolves more decision making to local
markets and the company maintains its
content strategy. “The whole debate
about what telecoms do beyond com-
munication is still unresolved,” he said.
See Lombard
16
Financial services
Japan Post Bank to unveil $1.5bn hedge fund
Long-time passive investor
embraces new level of risk
in quest for higher returns
LEO LEWIS — TOKYO
Japan Post Bank is to launch a $1.5bn in-
house hedge fund, according to people
familiar with the plan, as an institution
that once symbolised the nation’s finan-
cial conservatism embraces a new level
of risk in a quest for greater returns.
The shift moves the bank from being a
passive investor in externally managed
funds to one that can actively hold, and
potentially short-sell, individual stocks.
That, say analysts, sets it apart from
the huge Government Pension Invest-
Battle for EDP set to test attitudes towards China
Pursuit of Portuguese power
company likely to be lengthy
and politically contentious
ANDREW WARD AND
ARASH MASSOUDI — LONDON
PETER WISE — LISBON
The rejection by Energias de Portugal of
a €9bn takeover by China Three Gorges
yesterday completed the opening shots
in what is likely to be a long battle for
control of Portugal’s largest utility.
At stake is much more than just the
future of EDP. The proposed deal will
test attitudes to Chinese investment in
critical infrastructure on both sides of
the Atlantic at a time of strained trade
relations between Beijing and the US.
To complete the acquisition, CTG, the
state-owned operator of China’s Three
Gorges dam, would need regulatory
approval from the 14 countries where
EDP operates, including the US. But it
must first persuade the company’s
shareholders to accept its bid.
CTG on Friday offered €3.26 per share
for the 76.7 per cent of EDP that it does
not already own. There was little sur-
prise when the EDP board yesterday
dismissed that. The 5.5 per cent pre-
mium over the prior day’s closing share
price fell short of “what is customary for
European utilities where the offerer has
acquired control”, the board said.
That is unlikely to be the end of the
matter. People familiar with CTG’s
thinking said the company remained
committed to the deal. Shares in EDP
traded 5 per cent above the CTG bid at
€3.44 yesterday afternoon, implying
that investors expected an increased
offer from CTG or a rival bidder.
Gas Natural of Spain and Engie of
France have both been linked with EDP
in the past year. Enel of Italy and Iber-
drola of Spain were mentioned by ana-
lysts and bankers as other potential
suitors at a time when Europe’s largest
Technology
Russian spying concerns prompt Kaspersky’s move to Zurich
DAVID BOND
SECURITY AND DEFENCE EDITOR
Russian cyber security company
Kaspersky Lab is to open a data centre
in Switzerland to address concerns that
its antivirus software can be used as an
intelligence-gathering tool by the
Kremlin.
The Moscow-based company said yes-
terday it would move its data storage
Contracts & Tenders
ment Fund, whose efforts to secure the
right to hold individual shares have
been blocked by Japan’s powerful busi-
ness lobby.
Many Japanese would find it jarring to
see a former state-owned bank betting
against domestic companies.
The move to set up its own hedge fund
represents what one analyst described
as a “clear signal of intent” by Japan Post
Bank, which is planning a series of more
aggressive moves into new business
lines and investment portfolio diversifi-
cation as the Japanese government sells
down its 56 per cent stake in the bank’s
parent, Japan Post Holdings.
The hedge fund is scheduled to launch
in October and will be based in a new
office block in Tokyo’s Otemachi finan-
Holding the line: EDP’s Alqueva dam in southern Portugal. Renewables make up most of its portfolio — Mario Proenca/Bloomberg
Breakdown of EDP’s
shareholder structure
By geography, as of Dec 31 2017 (%)
Rest of
world
Spain
6.7
10 Europe
Portugal
34
11
15
US 23.3
China Three Gorges
Source: Interbolsa; Thomson Reuters Datastream
and processing facilities for users in
Europe, North America, Singapore,
Australia, Japan and South Korea to a
new facility in Zurich next year.
The move is a direct response to grow-
ing concerns among western nations at
the level of hostile cyber activity being
carried out by Russian hackers, some of
whom are backed by the Kremlin.
Although Kaspersky has repeatedly
denied the Russian intelligence services
★ FINANCIAL TIMES
COMPANIES
cial centre. It has yet to be officially
announced by Japan Post Bank, which
was partially privatised in 2015 via list-
ing on the Tokyo Stock Exchange.
Many Japanese would find
it jarring to see a former
state-owned bank betting
against domestic groups
The bank, the country’s second-larg-
est by deposits, declined to comment on
its plans for the hedge fund.
Since listing, shares in Japan Post
Bank have proved a disappointment to
the hundreds of thousands of retail
investors at whom the mega-initial pub-
Utilities. Electricity
EDP outperforms benchmark
Share price and index (rebased)
EDP
FTSE Eurofirst 300 Utilities
120
115
110
105
100
95
90
Jan 2017 2018 May
can access users’ data without their per-
mission, the company acknowledged it
was facing a potential loss of trust.
Anton Shingarev at Kaspersky Lab
said: “The world is . . . changing really
fast. The world in which we worked two
or three years ago is different.
“The company needs to address that.
The allegations we faced are wrong and
there is no evidence. Still the allegations
are there. We need to show customers
lic offering was aimed. The bank and its
domestic peers have struggled for prof-
its under the Bank of Japan’s negative
interest rate policy and broader demo-
graphic pressures affecting the domes-
tic financial sector.
Japan Post Bank’s shares have staged a
steady recovery from their lows of mid-
2016, but still trade on a price-to-book
ratio of 0.48x — slightly below the three
Japanese megabanks and considerably
lower than large US peers.
The hedge fund, according to
the people familiar with its planned
structure, will be a multi-strategy long-
short fund and will initially be managed
by a team of about six people — a group
recruited over the past few months from
Goldman Sachs, Barclays, Fidelity and
utilities want renewable assets of the
kind that make up more than half of
EDP’s portfolio.
But while a European takeover of EDP
would overcome political concerns in
Brussels and Washington about Chinese
investment, it is far from clear that this
would be welcomed in Lisbon.
Chinese companies bought a raft of
assets in Portugal after the financial cri-
sis, including a €2.7bn investment in
EDP by CTG, which today owns 23.3 per
cent of the utility. State Grid, the Chi-
nese monopoly power grid operator,
also bought a 25 per cent stake in its Por-
tuguese counterpart REN.
These deals helped raise desperately
needed capital after Portugal’s 2011 bail-
we are taking them seriously and
address them.”
The new centre in Zurich will cost
£12m and will open by the end of 2019.
Kaspersky said it would also relocate
the software programming tools it uses
to assemble its antivirus products from
Russia to Zurich and open a transpar-
ency centre there to enable interna-
tional regulators to review its products.
An independent third-party organisa-
Wednesday 16 May 2018
Financials
Bitmain leads
$110m funding
at least one global hedge fund. The idea in US mobile
of an in-house fund, say brokers prepar-
ing to pitch ideas at its new managers,
represents the most aggressive legacy of
payments
Katsunori Sago — the former Goldman
Sachs Japan vice-chairman hired by group Circle
Japan Post Bank in 2015 as its chief
investment officer, to inject a new
approach to risk into its $1.9tn invest- MARTIN ARNOLD — SHANGHAI
ment portfolio.
China’s biggest bitcoin mining com-
On his watch, Japan Post Bank’s alter-
native investment portfolio has diversi-
pany has led a $110m investment in
Circle Internet Financial, which values
fied into a variety of asset classes includ-
the fast-growing US mobile payments
ing hedge funds and real estate.
and cryptocurrency trading company
At the end of December 2016, the
at close to $3bn.
assets in the alternative portfolio stood
at ¥131bn; by the end of December 2017, The funding round, led by China’s Bit-
they had climbed to ¥1.27tn as the bank main, propels Circle into the top tier of
ploughed in more investment. cryptocurrency companies by funds
raised and brings together two of the
nascent sector’s leading companies
from the world’s two largest economies.
Circle uses the blockchain technology
that underpins bitcoin to provide peer-
to-peer payment services, but also
offers over-the-counter cryptocurrency
trading.
The investment comes as Circle
launches a new type of token — a “sta-
blecoin” — backed by fiat currency
reserves at a central bank in an attempt
out by the EU and IMF. Lisbon has since to overcome the volatility that has ham-
become a vocal opponent of EU curbs on pered efforts to use cryptocurrencies as
Chinese investment. António Costa, a mainstream method of payments.
prime minister, said on Friday that his “We are creating a stablecoin, the USD
administration had no objections to Coin, backed by fiat currency reserves,”
CTG taking control of EDP and praised said Jeremy Allaire, the internet entre-
Chinese groups for being “good inves- preneur who co-founded Circle in 2013
tors in Portugal”. and whose previous ventures include
CTG has promised to keep EDP as a the online video platform Brightcove.
separate entity listed in Lisbon, and to “You can’t transmit dollars over the
use it as a vehicle for international internet, or use them in smart con-
expansion in renewable power. That is tracts,” said Mr Allaire, referring to self-
seen by many in Lisbon as a more executing transactions on blockchain
attractive option than the country’s technology. “The ability to send a digital
largest listed company being broken up
or subsumed by a European rival.
Moreover, a European suitor wanting
‘The ability to send a
full control would need to persuade CTG digital currency to anyone
to sell its stake. The Chinese company
has no intention of doing that, according
with a digital wallet
to people familiar with its thinking. is revolutionary’
Bankers said other European utilities
could end up buying parts of EDP — per- currency to anyone with a digital wallet
haps its US assets, for example — to help is revolutionary, opening up the world
CTG overcome regulatory concerns. But to totally new forms of commerce.”
people close to CTG said the company Bitmain, which is based in Beijing but
wanted to keep EDP as intact as possible has offices in other cities including
and was not interested in any compro- Amsterdam, Tel Aviv and Hong Kong,
mises that left it short of overall control. claims to be the world’s largest provider
Advisers have already been hired to of high-powered computer servers used
guide CTG through the regulatory maze for “mining” cryptocurrencies such as
ahead, most notably in Washington. bitcoin and Ethereum.
The prospect of another strategic Miners create new cryptocurrencies
asset falling under Chinese control is by solving complex maths problems to
likely to reinforce calls from some Euro- validate new transactions. The reliance
pean capitals, including Paris and Ber- on raw computing power makes the
lin, for the EU to be given its own powers energy-hungry process more akin to
to review and block foreign takeovers. industrial manufacturing than tradi-
The influx of Chinese investment into tional high-technology businesses.
Portugal was an unintended conse- China has recently started clamping
quence of Portugal’s EU bailout, which down on cryptocurrency mining com-
was conditional on state assets being panies, as well as bitcoin exchanges and
opened to foreign investment. A bid by token issues for initial coin offerings.
Eon, the German utility, for the govern- Bitmain has been expanding its opera-
ment stake in EDP received personal tions outside of China and has plans to
backing from Angela Merkel, German open US bitcoin mining centres.
chancellor, in 2011 but Lisbon sold to Circle said Bitmain would help it to
CTG instead. This set the stage for the introduce other “stablecoins” — backed
latest drama, which bankers said would by different fiat currencies — and to help
take months to play out. them become interoperable around
the world. Some cryptocurrencies have
been tied to cash deposits before,
such as Tether, which is linked to US
dollar deposits. But Tether has faced
scepticism about the opaqueness of
those reserves, which Mr Allaire said
Circle would address by being more
transparent.
Mr Allaire said Circle turned cash flow
positive for the first time last year. It
tion would also be established to review handled more than $75bn of cryptocur-
its new processes, the company added. rency transactions between December
Mr Shingarev said Kaspersky had and February, generating $250m of rev-
chosen Switzerland because the coun- enue, he said. Its user base has grown
try’s data protection laws were among almost fivefold to 7m in more than 200
the toughest in the world. Swiss tradi- countries in the past year.
tions of neutrality had also influenced The Boston-based company provides
the company’s decision. cryptocurrency investment and trading
Antivirus software is of particular services, as well as a free payments serv-
concern to security agencies because of ice for people to send US dollars, pounds
its complex and intrusive nature. sterling and euros across borders. Ear-
lier this year it acquired Poloniex, the
US cryptocurrency exchange, in a deal
reportedly worth $400m.
Businesses It plans to grow from 230 staff to more
than 400 by the end of the year and has
offices in New York, San Francisco, Dub-
For Sale lin, London, Paris, Madrid, Milan, Bei-
jing and Hong Kong.
The latest funding round takes the
total raised by Circle to more than
$240m. Existing investors putting in
Business for Sale, Business Opportunities,
Business Services,
fresh money include IDG Capital,
Business Wanted, Franchises Breyer Capital, General Catalyst, Accel,
Runs Daily Digital Currency Group, and Pantera,
............................................................................................................................. while Blockchain Capital and Tusk Ven-
Classified Business Advertising
tures have become new investors.
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Wednesday 16 May 2018 ★ FINANCIAL TIMES 17

COMPANIES

Financials

Thomson to move forex derivatives out of London

Widely used trading unit
to be based in Dublin
ahead of Brexit next year
PHILIP STAFFORD — LONDON
Thomson Reuters is planning to trans-
fer its widely used foreign exchange
derivatives trading to Dublin from Lon-
don to be ready for the UK’s departure
from the EU next year.
In a note sent to clients yesterday, the
information and trading group said it
had applied to the Central Bank of Ire-
land, the local regulator, for a licence. It
will be used to cover Thomson’s deriva-
tives business — the largest in Europe —
which trades more than $300bn a day.
The business is part of the Thomson
trading operations being bought by pri-
vate equity group Blackstone for $17bn.
It runs one of the world’s biggest mar-
kets for foreign exchange trading, which
is widely used by banks, high-speed
traders and fund managers to provide
reference prices for their deals.
The memo cites concerns that cus-
tomers would not be able to use pass-
porting rights into the EU after Brexit as
the reason for Thomson’s decision.
The move will split legal oversight of
Thomson’s European cash and deriva-
tives venues.
As part of the move, Thomson will
drop its UK-regulated licence to trade
derivatives in the EU. London is the
biggest regulator of such licences,
The company said it
was a ‘close-run thing’
in the choice between
Dublin and Amsterdam
known as “multilateral trade facilities”
(MTF), overseeing nearly half of the 150
MTFs registered in the bloc. Ireland has
just four.
However, Thomson Reuters will keep
its spot trading market, which trades
about $100bn a day, in London because
this is outside the scope of Mifid II,
Europe’s main markets rules. The tech-
nology for matching deals, and process-
ing and settling them will also remain in
London. It has no plans to move any
employees from London or elsewhere to
Dublin but was hiring new staff to meet
local laws, it added.
“I don’t foresee where there will be an
issue as everyone is accessing the same
pools of liquidity,” said Neill Penney, co-
head of trading at Thomson Reuters.
Some fixed-income trading venues
have opted to apply for an EU-based
MTF licence alongside their London
one, while choosing to go to Amster-
dam. Bloomberg, Nex, MarketAxess
and Tradeweb, the fixed-income venue
Thomson Reuters co-owns with a con-
sortium of banks, chose the Dutch city
as a base for its transport links, and
proximity to big high-frequency trading
customers that dominate trading on glo-
bal markets, such as Optiver, IMC and
Flow Traders.
Mr Penney said it was a “close-run
thing” in the choice between Dublin and
Amsterdam. However, he said Ireland
would offer greatest continuity for cli-
ents and it was the most cost-effective
solution for Thomson Reuters.
The Irish capital is also the legal home
for many trading companies, including
Virtu Financial, Citadel Securities and
Susquehanna.
Thomson’s decision to keep technol-
ogy and systems in London will not
meet the guidance from the European
Securities and Markets Authority last
year that market infrastructure opera-
tors’ key activities should not be out-
sourced outside the EU.
However, the industry has been in dis-
cussions with regulators about keeping
the technology network in the UK,
because of the cost and difficulty of
splitting it up. Many EU trading venues
already house important technology
operations in the US.

Travel & leisure. Bookmakers

Expansion is no slam dunk after US lifts ban on sports bets

Market could be worth $10bn
but states are likely to take a
cautious stance on licensing
KADHIM SHUBBER — WASHINGTON
MURAD AHMED — LONDON
British bookmaker William Hill made a
bet in New Jersey this year, wagering
that a long-running legal battle over
sports betting in the US state would
result in the legalisation of gambling on
lucrative games such as football, basket-
ball and baseball.
Joe Asher, who runs its US arm,
ordered his team to lay the groundwork
so that William Hill could offer sports
betting at Monmouth Park, New Jersey’s
coastal racetrack, within weeks of a
decision.
On Monday, the bet paid off as the US
Supreme Court ruled in favour of New
Jersey in its long-running effort to intro-
duce sports betting, striking down a
1992 federal law that banned all but a
few states, including Nevada, from pro-
moting gambling on sporting events.
The ruling placed the decision of
whether to allow wagering on competi-
tive games firmly in the hands of state
legislatures, putting New Jersey at the
forefront of what could become the
widespread legalisation of sports bet-
ting across the US.
But while gambling on sports could
come to Monmouth Park as early as
next month, the Supreme Court’s ruling
is just the start of a broader tussle
between states, gambling companies
and sports leagues about how the bet-
ting would work in practice and how to
divide up the spoils.
“We’re going to have an epic celebra-
tion tonight,” said Mr Asher on a call
with reporters on Monday as William
Hill’s share price jumped 10.7 per cent.
“Then tomorrow the hard work’s going
to begin.”
The potential prize is the illegal sports
betting market in the US. The gambling
industry estimates that $150bn is
wagered on sports in the underground
market each year, a significant source of
money for organised crime that advo-
cates of legalisation hope can be
diverted to legitimate businesses that
pay tax.
The task of drawing customers away
from illegal sports bookies, with whom
they may have long relationships, will
be a tricky one as states, along with the
be the only ones controlling how it
would be ushered into our businesses,”
it said in a statement. National Basket-
ball Association commissioner Adam
Silver said: “The integrity of our game
remains our highest priority”.
The question of how to prevent
abuses such as gambling on inside infor-
mation and match fixing will be a key
challenge for states, bookies and sports
associations, as the latter push for states
to legislate an “integrity fee” that would
be levied on the total amount wagered
and paid to the leagues.
Nevada, which had a carve-out from
the federal ban on sports gambling,
does not have such fees, which bookies
view as an attempt to grab a slice of
the pie. Mr Asher of William Hill dis-
missed integrity fees as “something for
nothing”.
Aaron Swerdlow, a senior associate at
Glaser Weil, which represents athletes
and coaches, said the sports industry’s
emphasis on integrity reflected in part
its positioning in the battle over fees, as
‘The integrity of our
game remains our
highest priority’
National Basketball Association
well as real concerns about the impact of
Individual states sports and gambling industries, try to share of the pie,’” said Dan Etna, co- sports betting industry, have been gambling on sports and the public’s per-
can decide to maximise their revenues without push- chair of the sports law practice at Her- increasing their presence in the US for ception of it. “There’s one thing for the
allow gambling ing punters back into the black market rick Feinstein. The players’ associa- several years in the hope that the mar- Supreme Court to say it’s legal. It’s
on basketball with high costs. tions, too, will “want a piece of what’s ket could open up. another thing for Americans from a
and other sports “The states are going to look to this as coming in here. It’s their membership GVC, the Isle of Man-based group that moral perspective to say that we want
after a Supreme a new-found legal source of revenue that that’s participating in the games,” he recently completed a £4bn merger with this in our communities,” he said.
Court ruling they can tax. The leagues are saying, said. UK bookmaker Ladbrokes Coral, has The Supreme Court ruling means
Ezra Shaw/TPX
‘hey, at the end of the day people are bet- European gambling companies, three state licences in the US. It said it “states are free to decide they want to be
ting on our product [ . . .] we want our which have became global leaders in the had a number of partnership contracts the next Nevada”, said Brian Burgess, a
with US casinos, racecourses and gam- partner at Goodwin Procter. Only a
ing venues, including a deal to supply small number have thus far made
Rise and decline of Atlantic City Payday for UK bookmakers technology to an MGM casino in New efforts to legalise sports betting — New
Casino gaming revenues, annual figures ($bn) Share price change this week (%) Jersey. Jersey, Delaware and West Virginia
William Hill entered the US market in among them.
5 0 5 10 15 2011, acquiring three sports betting While Barclays estimates the US gam-
888 businesses to gain a large share of the bling market could be worth $10bn in
4 Nevada sports betting industry. Paddy net revenues to gambling operators, a
William Hill Power Betfair operates an online casino figure that excludes money given back
3 in New Jersey, and paid $48m to acquire to punters in prizes, other analysts are
Draft, a US daily fantasy sports site. wary about the potential for profits.
Paddy Power Betfair
2 Sports organisations responded cau- “A handful of states are likely to move
tiously to the Supreme Court’s decision. quickly and relatively liberally,” said
GVC The Major League Baseball Players Paul Leyland, an analyst at Regulus
1
Association warned against allowing Partners. “More are likely to move
Playtech bookmakers to drive the introduction of slowly and with very restrictive posi-
0
1980 90 2000 10 17 sports betting. tions. The majority will almost certainly
“We cannot allow those who have lob- wait and see.”
Sources: UNLV Center for Gaming Research; Bloomberg
bied the hardest for sports gambling to See Lex

Technology Airlines Industrials

Samsung executive’s arrest Air France-KLM appoints ThyssenKrupp shares dive on

puts reform drive in doubt
BRYAN HARRIS AND SONG JUNG-A
SEOUL
A Samsung executive was arrested yes-
terday as South Korea’s largest conglo-
merate contends with allegations that
have raised fresh doubts about com-
pany pledges to reform and loosen its
strict work culture.
Choi Pyeong-seok at the after-sales unit
of Samsung Electronics was detained
amid an investigation into alleged sabo-
tage of labour union activities by man-
agement, said prosecutors.
The case raises fresh questions about
the direction of Samsung, which despite
a quite positive image abroad has been
beset by corruption scandals at home.
Lee Jae-yong, Samsung’s de facto
chief, was released from jail in February,
five months after being convicted on
corruption charges, by an appeals court
that halved his sentence to two-and-a-
half years and suspended it for four.
Mr Lee has always denied the charges,
which included claims he paid bribes to
an aide of the country’s former presi-
dent Park Geun-hye in exchange for
business favours. He, as well as prosecu-
tors, have appealed to South Korea’s
supreme court, which will make a final
ruling on the case later this year.
On his release, he apologised “for not
being able to show my good aspects”
and company officials vowed to im-
prove governance, outlining plans to
simplify its corporate structure and end
the emperor-style of management.
Now Samsung faces allegations it used
various means, including paying cash
bribes, to disrupt and sabotage the
activities of unions in violation of
Korean labour law, the Seoul Central
District Prosecutors’ Office said.
Prosecutors yesterday raided Sam-
sung Electronics Services’ offices out-
side Seoul as part of a probe into
whether the alleged sabotage was
ordered by the company’s leadership.
“Samsung has been cracking down on
union activities since the company’s
creation. It has only come to the surface
now with the prosecutors’ investiga-
tion,” said Park Sang-in, a professor at
Seoul National University.
Additional reporting by Kang Buseong
stopgap leadership team
DAVID KEOHANE — PARIS
Air France-KLM put in place an
interim leadership team yesterday fol-
lowing the shock resignation of the air-
line’s previous chief over a pay dispute
with staff earlier this month.
A three-person management commit-
tee has been set up led by Frédéric
Gagey, group chief financial officer who
will now also serve as the group’s chief
executive.
The other two members of the com-
mittee, which will take decisions collec-
tively, are Franck Terner, the CEO of Air
France and Pieter Elbers, the CEO of
KLM, who will both serve as deputy
CEOs. Existing board member Anne-
Marie Couderc will act as non-executive
chairman.
“This transitional governance struc-
ture is established for the shortest-pos-
sible period,” said the group in a state-
ment, adding that the “Air France CEO
does not have a new mandate to take
decisions that would jeopardise the
growth strategy approved by the Air
France-KLM board of directors.”
“This basically postpones any
restructuring and any big investment
decisions . . . But it’s a safe pair of
hands and it might allow some progress
with unions,” said Daniel Roeska at
Bernstein.
At the beginning of May, Jean-Marc
Janaillac, now the former chief execu-
‘This transitional
governance structure is
established for the
shortest-possible period’
tive of Air France-KLM, said he would
leave the group after losing a staff vote
over a pay deal that had already been
rejected by the Air France unions.
The pay deal has been responsible for
some 15 days of strikes, which have cost
the airline close to €400m, dragging
down its financial results and putting its
long-term viability under a spotlight.
The airline must now search for a per-
manent replacement for Mr Janaillac
capable of restructuring the company.
concern over core operations
PATRICK MCGEE — FRANKFURT
ThyssenKrupp shares fell sharply yes-
terday after second-quarter earnings
caused investors to worry about the
state of the company’s core operations
as it spins off its steelmaking unit to
focus on industrial goods.
The German conglomerate has been
restructuring since 2011 to leave the
steel business and focus on diversified
industrial goods — including elevators,
submarines and vehicle components.
Yesterday morning the group was
upbeat about its earnings, but investors
were disappointed its full-year guidance
was not lifted and its shares were down
5.7 per cent at €21.85 by the close.
Guido Kerkhoff, finance chief, said he
was “surprised” by the sharp drop in the
stock price and explained that 2018
guidance was left where it was to reflect
how foreign exchange and raw material
prices were causing a headwind of up
to €200m.
“This is a temporary thing, not a last-
ing thing,” he said. “It’s not a setback in
any way.”
Carsten Riek, analyst at UBS, said
ThyssenKrupp had not officially down-
graded anything, but the way their
earnings had been reshuffled suggested
there was more uncertainty in the
group’s technological businesses than
previously thought.
“The market worry right now is that
as ThyssenKrupp moves towards being
a technology business, that technology
business starts weakening,” he said.
“The company itself didn’t really
guide down, but the market looked at it
as if there’s a weaker outcome.”
Michael Shillaker, analyst at Credit
Suisse, said: “Guidance was probably
weaker than we and some in the market
had hoped for. There is little or nothing
to get bullish on today in this set of
numbers.”
ThyssenKrupp said adjusted earnings
before interest and taxes rose 17 per
cent from a year ago to €500m — a
nudge above forecasts — while the
€944m it recorded in the first six
months of its fiscal year marked “its
best first half since the start of the
group’s transformation”.
18
Vittorio Colao rang the changes at Vodafone, just not on a BlackBerry
Matthew
Vincent
When Vittorio Colao became chief
executive of Vodafone back in 2008, it
was a mobile phone operator pinning
its hopes on the new BlackBerry Storm
handset — a device that had no WiFi
connectivity and required users to
master a revolutionary “popple dome”
screen, which functioned as a giant
button. It came with several free
accessories and more comedic
customers were wont to ask if one of
these was an Apple iPhone.
Thankfully, Mr Colao has since
provided a much-needed upgrade, a
cleaner design and more effective City
communications — for the company, as
well as for 556m customers. Investors,
who yesterday learnt he was stepping
down, will be glad he rang the changes.
Upgrading the business involved
turning a consumer-focused 3G, or
even 2G, network operator into a
Banks
TSB refused
Lloyds’ offer of
help in IT failure
Former owner acted hours
after customers were
shut out of their accounts
NICHOLAS MEGAW
RETAIL BANKING CORRESPONDENT
TSB turned down an offer of help from
Lloyds Banking Group, its former
owner, at the beginning of an IT failure
that locked hundreds of thousands of
customers out of their bank accounts.
Lloyds contacted TSB on the morning
of April 23, hours after it became clear
the lender’s new IT system had run into
problems, according to two people with
knowledge of the conversations.
They said Lloyds had made an open-
ended offer to use its own expertise to
help TSB, which declined. TSB has since
recruited a team from IBM, the technol-
ogy group, to help it identify and fix the
problems.
Lloyds declined to comment. TSB
declined to comment on the offer of
assistance but said: “Our teams have
continued to work around the clock to
put things right for our customers. Our
priority has been to utilise the expertise
of IBM together with Sabis [the group IT
company of Sabadell, TSB’s owner] and
our in-house teams to help resolve these
issues.”
TSB was spun out of Lloyds in 2013
and moved to a new IT system after
spending the past five years paying to
use the Lloyds one.
Although the transfer of customer
data that had been scheduled over the
weekend was completed successfully,
TSB’s new system was unable to cope
with the volume of customers when it
Property
Landsec battens hatches ahead of Brexit
AIME WILLIAMS
Landsec, the UK’s largest listed prop-
erty company, has warned it expects
“subdued” markets ahead of Brexit as
it reported its first annual loss since the
financial crisis.
Chief executive Rob Noel said yesterday
that the FTSE 100 group was “navigat-
ing uncertain waters” and had shifted
further from speculative development
to focus on pre-let projects.
Announcing its annual results, the
developer said net asset value per share
had fallen 2.7 per cent, while pre-tax
losses, taking movements in property
values into account, were £251m, com-
pared with a £112m pre-tax profit the
previous year.
Landsec attributed the loss and fall in
NAV to its focus on cutting the cost of its
converged broadband, TV and
telecoms provider. Mr Colao achieved
the transformation through €49bn of
acquisitions, including last week’s
€18bn deal for Liberty Global’s
European cable assets, plus €81bn of
capital expenditure and €20bn of
investment in spectrum.
Cleaning up and simplifying the
business made this possible,
financially. He could tell the company’s
designs on the US and Indian markets
felt about as intuitive as a popple
screen. So disposing of Vodafone’s
£84bn stake in Verizon Wireless in the
US enabled the largest single return of
value to shareholders in history, at
£51bn, while merging $12bn Vodafone
India with $11bn Idea Cellular
delivered synergies and scale. In total,
€116bn of minority holdings have been
sold, to focus on controlled operations.
Buying Liberty’s European cable
assets is, in effect, Mr Colao’s last
upgrade and design clean-up: it not
only ensures Vodafone has the largest
mobile and fixed-line next-generation
network in Europe, it also means it
operates only where it can be a leading
technology provider.
went live. John Mann, a member of the
parliamentary Treasury select commit-
tee, said TSB’s reluctance to accept
assistance was a sign that it had failed to
acknowledge the gravity of the prob-
lems and had been “hoping to get away
with it”.
Mr Mann, a Labour MP, added: “They
were playing fast and loose with the
customers and also with their reputa-
tion, which has been so damaged by
it now.”
Paul Pester, chief executive of TSB,
told the select committee earlier this
month that the bank had carried out
numerous successful tests ahead of the
switchover, but said the move to go
ahead with the final data transfer had
turned out to be a “terrible decision”.
Mr Pester gave up £2m of pay awards
directly linked to the IT project, and
one union representing TSB staff has
called for all performance bonuses for
the bank’s senior executives to be with-
held this year.
TSB has outlined more than £50m in
expected costs from waiving fees and
paying account holders more interest to
prevent a customer exodus. The final
bill for the Monday morning failure is
likely to be higher after taking into
account further compensation pay-
ments and consultants’ fees.
In addition to IBM, the bank has hired
Slaughter and May, the law firm, to lead
an independent investigation into what
happened, while Deloitte, the profes-
sional services firm, is helping it develop
a customer compensation plan.
TSB received 40,000 customer com-
plaints in the first 10 days following the
transfer, and has started paying out
some compensation.
debt, repurchasing £1.5bn of bonds over
the year before reissuing £1.4bn. Mr
Noel said Landsec was focused on main-
taining a “conservative gearing” to pre-
pare for uncertainty.
The value of its portfolio, which
includes shopping centres and London
offices, fell 0.7 per cent, or £91m, com-
pared with a £147m decline the previ-
ous year. Shopping centres were hardest
hit, falling 3 per cent, including an 11 per
cent cut to its 30 per cent stake in Blue-
water, Kent. The value of its London
offices declined 1.5 per cent.
“The elephant in the room here is that
the UK is leaving the European Union in
March next year,” said Mr Noel. The
London office and retail markets were
“healthy” but had “paused for breath”,
with vacancy rates slowly rising.
Nevertheless the group, which sold
★ FINANCIAL TIMES
UK COMPANIES
But Mr Colao’s real skill has been
maintaining good communications in
the City. For all those big numbers,
Vodafone’s share price has fallen 30 per
cent since the start of 2014, and even a
37 per cent return with dividends
reinvested in the past five years is a
fraction of Orange’s 124 per cent.
However, Vodafone investors
evidently have a better memory than
a 2008 BlackBerry. They seem to
appreciate that the price-only return
over 10 years is an annualised 4.4 per
cent, before €121bn of dividends and
buybacks. More than that, they appear
to have valued Mr Colao’s engaging but
unflashy personality. They never
protested during his tough times but
sold on news of his departure — despite
better than expected annual results.
And that is the challenge for the man
picking up the handset: chief financial
officer Nick Read. Seventeen years
with Vodafone in mainly operational
roles suggests he has sufficient
dexterity to press the right buttons
with regulators over the Liberty deal.
Nevertheless, investors might be more
reassured if he kept Mr Colao’s number
on speed dial. And not on a BlackBerry.
Tour of duty
EasyJet looks
to compete in
holiday trade
the City’s “Walkie Talkie” skyscraper
for £1.3bn last year, made a profit from
leasing of £406m for the year to March,
up 6.3 per cent on the previous year.
During the year, Landsec began con-
struction work on what will be Deutsche
Bank’s City headquarters along with the
Nova building in Victoria and a shop-
ping centre in Oxford. It also bought
three retail outlets for £333m. Despite
its conservative positioning, the group
said it had potential to develop 800,000
square feet across London.
The dividend rose nearly 15 per cent
to 44.2p. Shares closed down 1.8 per
cent.
Robbie Duncan, analyst at Numis,
said results were mixed. The outlook
was “more important” than the figures,
he added.
See Lombard
Premier: extra helpings
Premier Foods, maker of cakes, suet
and gravy granules, just can’t find the
right raising agent, writes Kate Burgess.
Yesterday, it declared its 3.6 per cent
revenue growth in the year to March to
be the best in five years. But its cost of
sales rose 6.6 per cent. It stayed in
profit by cutting marketing and
distribution costs 9 per cent.
Premier also boasted that its pension
schemes had a £317m surplus —
coincidentally equivalent to its equity
value — achieved unusually by inching
up discount rates while lowering
inflation assumptions. Nonetheless, the
trustees reckon Premier’s schemes are
in deficit. And the group has agreed to
pay £40m-plus annually in cash until
2023 to cover the shortfall. The net
present value of these payments is
more than £300m.
And still net debt at £496m is a hefty
3.6 times prettified earnings. The
company is unlikely to pay a dividend
until debt falls below 3 times, which it
says will happen within two years.
Unsurprisingly, the shares have
remained stodgily below 40p for most
EasyJet is to expand its holiday
business as new chief executive Johan
Lundgren announces strategic changes
at the UK low-cost airline.
Mr Lundgren, who took charge in
December, aimed to compete with
holiday companies Tui Group and
Thomas Cook, which have a bigger
share of the tour-operator market.
He said there were “untapped”
opportunities in the holiday market as
he announced Garry Wilson, an
executive at travel operator Tui Group,
would take over as chief executive of
easyJet Holidays.
The plans were unveiled as Mr
Lundgren presented better than
Banks
Euribor trial defendant denies wrongdoing
BARNEY THOMPSON
LEGAL CORRESPONDENT
The first defendant to give evidence in
a trial over alleged rate-rigging of Euri-
bor has said profits made by his team at
Barclays at the height of the financial
crisis resulted from trading opportuni-
ties in a “crazy” market rather than
anything illegal.
Carlo Palombo, 39, a former trader at
Barclays, did not deny he had
exchanged messages with co-defendant
Sisse Bohart, 41, about how she should
set the bank’s submissions as part of the
process of determining Euribor, a key
interbank lending rate.
But it was “absolutely normal” for
him to talk to Ms Bohart about Euribor,
Mr Palombo told a jury at Southwark
Crown Court in London. Several people
of the past three years. It is hard to see
more time in the oven helping.
Landsec: Brexit? Fix it!
Nobody wants to hear you explaining
the risks of doing a loft conversion in
the current climate. Still less how
clever you were to remortgage to a
cheap fixed rate. And it would seem
the rules of the ghastly suburban
drinks party apply equally in the City.
Hence, Landsec’s reports of falling
valuations in a “subdued” pre-Brexit
market, and a move to refinance
£1.5bn of bonds to cut its average cost
of debt to 2.6 per cent over 13 years,
met with a share price fall.
This seemed a trifle harsh, given the
debt refinancing cost of £440m
accounted for part of that fall in net
asset value, but boosted earnings
sufficiently to lift the dividend 14 per
cent. No such compensation is ever
available when Jolyon from next door
starts banging on about his builders.
matthew.vincent@ft.com
Premier Foods: kate.burgess@ft.com
expected first-half results with the
group cutting its losses sharply in
the first half of the year.
The low-cost airline has benefited
from the troubles of some of its
rivals, including the bankruptcies of
Air Berlin and Monarch, which
reduced the market’s capacity.
The company turned a headline
pre-tax profit of £8m, a £220m
improvement from the 2017 period.
Revenues rose 19 per cent from
the same period last year to £2.18bn
Shares rose 3.3 per cent to
£17.41 yesterday.
Josh Spero and Cat Rutter Pooley
See Lex
Jason Alden/Bloomberg
working near him could hear what he
had been saying, he added, and no one
appeared to regard such exchanges as
improper or illegal.
Mr Palombo was speaking yesterday
after the prosecution concluded its case
in the trial. He and Ms Bohart, along
with Colin Bermingham and Philippe
Moryoussef, who worked for Barclays,
and Achim Kramer, who is currently
employed at Deutsche Bank, are
accused of conspiracy to defraud in rela-
tion to claims they collaborated to make
false Euribor submissions. All deny the
allegations. A sixth person, Christian
Bittar, once one of Deutsche Bank’s star
traders, pleaded guilty last month.
When the crisis hit, the “whole mar-
ket” seemed to believe it was a short-
term phenomenon but he and his team
thought that was unlikely, Mr Palombo
Wednesday 16 May 2018
Briefs
Playtech
Pay concerns
Playtech is facing an investor
backlash over a 78 per cent pay rise
for chief Mor Weizer in 2017, despite
the gaming software business
issuing a profit warning for the year.
In spite of weeks of meetings
with shareholders, the company is
braced for a revolt on pay at its
annual meeting today, said a person
familiar with its leadership.
Mr Weizer was paid almost £4.2m
in 2017, up from £2.3m in 2016, for
his “exceptional leadership”, despite
a slowdown in profit growth. The
person familiar with management
said Mr Weizer was underpaid
compared with his peers. Attracta
Mooney and Murad Ahmed
CYBG
Mortgage weakness
Shares in CYBG, owner of
Clydesdale and Yorkshire Bank,
dropped more than 5 per cent as a
weak mortgage market weighed on
its margins, highlighting the
pressures on smaller banks that
have encouraged it to consider a
takeover of rival Virgin Money.
The FTSE 250 company fell to a
pre-tax loss of £95m in the six
months to March 31, from a profit of
£46m in the same period last year.
A statutory loss had been
expected after the Leeds-based
bank warned it would have to take a
£202m charge to pay for mis-selling
payment protection insurance, but
underlying figures were also slightly
below consensus forecasts.
Nicholas Megaw
Arcadia
Retail slowdown
Not even Philip Green is immune
from the downturn on the high
street. Taveta — his holding
company for Arcadia, which owns
names such as Topshop, Wallis and
Miss Selfridge — reported a 40 per
cent fall in underlying operating
profit to £124m last year amid a
“highly competitive and
challenging” retail environment.
Net profit for the year to August
26 improved to £49.4m from £16.7m
the year before, owing to lower
levels of exceptional charges.
Revenue declined to £1.91bn from
£2bn. “Whilst we have found
headline sales and profits
disappointing, we remain a strongly
cash generative business,” said
Ian Grabiner, chief executive.
Jonathan Eley
LME
Profits reinforced
The London Metal Exchange
reported its highest profits since
2015, buoyed by a recovery in
markets and lower costs, according
to recently filed accounts.
Pre-tax profits in the year to
December rose 5 per cent to $109m,
allowing LME to pay a $75m
dividend to its Hong Kong
Exchanges and Clearing parent.
A separate filing showed LME’s
clearing business made pre-tax
profits of $45m in 2017, against
$52m a year earlier, and paid $21.5m
to HKEX. Neil Hume
said. That view, and the extreme market
volatility of the time, enabled them to
make £265m in profit for Barclays
between 2007 and 2009, he said.
Asked by his defence lawyer if those
profits had had “anything to do with
asking the cash desk to go high or low”
in Barclays’ Euribor submissions, Mr
Palombo replied they were irrelevant.
Interest rates at the time “were mov-
ing by 1 per cent or 50 basis points”, he
said, while the relatively tiny changes
made to Euribor submissions requested
by traders had made “no difference” to
his team’s performance.
Mr Palombo also said that when news
items started to appear about suspicions
of illegal interference in Euribor and
Libor-setting, he received no guidance
from Barclays’ compliance officials or
senior management.
Wednesday 16 May 2018
Industrials
Carillion board and auditors savaged in scathing report
MPs blast failed company’s
‘incredibly poor’ standards
and ‘aggressive’ accounting
GILL PLIMMER
After months of investigation that
included five oral hearings and a trawl
through hundreds of pieces of evidence,
MPs have delivered a searing assess-
ment of government contractor Caril-
lion and the circumstances of its col-
lapse in January with liabilities of £7bn
and just £29m in cash.
It is as unforgiving of individuals as it
is of the institutions that failed to spot
the warnings as the group spiralled
towards failure.
Although Carillion’s board “presented
to us as self-pitying victims of a mael-
strom of coincidental and unforeseeable
mishaps”, the company’s rise and “spec-
tacular fall” was a story of “recklessness,
hubris and greed,” the UK parliament’s
cross-party business and work and pen-
sions committees concluded.
Carillion was an important contractor
to the UK government, with 43,000
employees worldwide and 19,000 in the
UK, providing everything from con-
struction to hospital and prison clean-
ing, school meals and facilities manage-
ment for the Ministry of Defence.
But it was also a company run in a
state of semi-chaos. Sarah Albon, chief
executive of the government’s Insol-
vency Service, which is in charge of
winding the company up, said Caril-
lion’s “incredibly poor standards” made
it difficult to identify even information
that should have been “absolutely,
straightforwardly” available, such as a
list of current directors.
The company collapsed after a series
of crippling financial provisions last
summer undermined its finances just
months after presenting much more
healthy 2016 accounts and signing off
dividends worth £78m.
Its failure has stalled construction
projects, left creditors, investors,
employees, subcontractors and pen-
sioners nursing heavy losses and
prompted doubts about the growth-at-
all-costs model often employed in the
outsourcing industry. Share prices have
been hit across the sector and two other
big companies, Capita and Interserve,
have been forced to refinance their debt.
Carillion’s business model was char-
acterised by a “relentless dash for cash,
driven by acquisitions, rising debt,
expansion into new markets and exploi-
tation of suppliers”, MPs said. “It pre-
sented accounts that misrepresented
the reality of the business and increased
its dividends come what may.”
The first wave of provisions — £845m
in July — was presented as the “unfortu-
nate result” of sudden deteriorations in
important contracts between March
and June that year. Instead, audit com-
mittee papers show at least 18 contracts
had provisions made against them.
Although a November 2016 internal
review of Carillion’s Royal Liverpool
Hospital management contract stated it
was making a loss, management
insisted a “healthy profit margin” was
assumed in the 2016 accounts, the
report revealed.
Other “aggressive” accounting poli-
cies included booking revenues for
work that had not been agreed, delaying
payments to suppliers so that they could
be used in effect as a “credit card”, and
“routine quibbling” over invoices.
“Whether or not all this was within
the letter of accountancy law, it was
intended to deceive lenders and inves-
Regulator rebuked
MPs urge ‘cultural change’
at pensions watchdog
MPs have called for “substantial
cultural change” at the regulator in
charge of protecting millions of
workplace pension savers, describing
its oversight of collapsed contractor
Carillion as “feeble”.
In a report published today, the
business, energy and industrial
strategy and the work & pensions
committees concluded the UK’s
Pensions Regulator had failed in all its
objectives for the Carillion pension
scheme. “Carillion consistently refused
to make adequate contributions to its
pension schemes, favouring dividend
payments and cash chasing growth,”
said the report.
“It was a classic case for the
regulator to use its powers proactively.
The Pensions Regulator’s feeble
response to the underfunding of
Carillion’s pension schemes was a
threat to impose a contribution
schedule, a power it had never — and
has still never — used.”
About 27,000 of Carillion’s
retirement fund members face cuts to
their promised pensions, after 11 of the
company’s 13 plans were transferred to
the Pension Protection Fund, which
pays compensation to pension scheme
members of insolvent companies, with
★ FINANCIAL TIMES 19
UK COMPANIES
tors,” the committee said. But if the
The collapse of Carillion
board and management came under
fire, there are also serious implications Market cap (£bn)
for the “panoply of auditors and advis- May 3
ers who looked the other way” and Chief executive Howson
which have been “richly compensated”, describes 'encouraging 1.4
according to the report. start to the year'
1.2
Not only was the auditing industry
found to have “conflicts of interest at 1.0
every turn”, MPs also noted that KPMG
0.8
had failed to qualify Carillion’s accounts Jan 15
once in the 19 years it acted as external Carillion collapses after 0.6
auditor, while receiving £29m in fees banks refuse to lend it
any more money 0.4
over the period.
“In failing to exercise — and voice — 0.2
professional scepticism towards Caril- 0
lion’s aggressive accounting judgments 2016 17 18
KPMG was complicit in them and Source: Thomson Reuters Datastream
should take its own share of responsibil-
ity for the consequences,” the MPs said.
Nor was KPMG, which is already
under investigation by the accounting
watchdog the Financial Reporting
Council over Carillion, an “isolated fail-
ure”, the committee added. “It was
symptomatic of a market which works
for the members of the oligopoly but Carillion’s business model was
fails the wider economy.” characterised by a ‘relentless
EY received £10.8m for six months of dash for cash’, MPs said
turnround advice as the company Daniel Sorabji/AFP/Getty Images
headed inexorably towards collapse.
Although PwC had advised the com-
pany, its pension schemes and the gov-
ernment on Carillion contracts it was
appointed by the government to man-
age the liquidation — in effect “writing
their own pay cheque, without adequate
scrutiny”, the report said.
Deloitte acted as internal auditors,
receiving £51.2m over the past decade,
advising the board on risk management
and financial controls. Yet despite its
assistance these were the failings that
“ultimately proved terminal”. Nor did
The company’s rise and
‘spectacular fall’ was a
story of ‘recklessness,
hubris and greed’
Deloitte seem to know of important dis-
putes — such as a conflict with
Msheireb, a Qatari company, over who
owed whom £200m, which has still not
been unravelled. It also received a fur-
ther £14.3m from government for work
relating to Carillion.
Names such as EY, law firm Slaughter
and May and banks Lazard and Morgan
Stanley were used by the board as a
“badge of credibility”, the report said.
But the appearance of prominent advis-
ers proved nothing other than the “will-
ingness of the board to throw money at a
problem and the willingness of advisers
to accept generous fees”, MPs added.
The watchdogs were also united in
their “feebleness and timidity”. The
Pensions Regulator “failed in all its
objectives”, refusing to impose a contri-
bution schedule to address the pension
funding gap, despite warnings from
trustees. Carillion’s failure has left a
pension deficit of up to £2.6bn and pay-
ments to the 27,000 members of its
defined benefit scheme have been cut.
The FRC, which is the subject of an
independent review, contacted the
company in relation to 12 issues but
failed to follow them up.
Meanwhile the government provided
little warning of risks in a key supplier
and its reaction to “weakness exposed
by this and other corporate failures has
been cautious, largely technical and
characterised by seemingly endless
consultation”.
See Lex
an estimated £800m funding shortfall.
“Carillion’s pension schemes were
not dumped as part of a sudden
company sale; they were underfunded
over an extended period in full view of
TPR,” said the report.
The report noted that the Pensions
Regulator now has different leadership
and recently promised to be “quicker,
bolder and more proactive”.
The government is also consulting
on strengthening its powers.
“These are positive developments,”
said the report.
But the MPs said they were “deeply
concerned” by the evidence from TPR
under its new leadership of Lesley
Titcomb, “which sought to defend the
passive approach they and their
predecessors had taken on the
Carillion pension schemes”.
The report concluded “substantial
cultural change” was required in an
organisation where a “tentative and
apologetic approach is ingrained”.
“We are far from convinced that
TPR’s current leadership is equipped
to effect that change,” said the report.
In response, Ms Titcomb said the
regulator was “now a very different
organisation”.
“We actively seek to learn lessons to
better protect members of pension
schemes,” she said. “The report
underlines the significant changes
already made at TPR but there is
more work to do.” Josephine Cumbo
20 FINANCIAL TIMES Wednesday 16 May 2018

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

Change during previous day’s trading (%)
S&P 500 Nasdaq Composite Dow Jones Ind FTSE 100 FTSE Eurofirst 300 Nikkei Hang Seng FTSE All World $ $ per € $ per £ ¥ per $ £ per € Oil Brent $ Sep Gold $

-0.81% -0.96% -0.91% -0.21% -1.23% -0.88% -0.919% -0.735% -0.114% -0.34%
0.16% 0.14% 0.703% 0.90%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Apr 16 - - Index All World Apr 16 - May 15 Index All World Apr 16 - May 15 Index All World Apr 16 - May 15 Index All World Apr 16 - May 15 Index All World Apr 16 - May 15 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
16,095.33 7,722.98 12,970.04 22,818.02
2,708.02
2,677.84 2,457.49 2,458.54
15,300.38 7,264.56 12,391.41 21,687.10
Day -0.81% Month 1.99% Year 13.31% Day 0.06% Month 5.35% Year 2.96% Day 0.16% Month 6.44% Year 3.73% Day -0.06% Month 0.45% Year NaN% Day -0.21% Month 4.77% Year 14.76% Day -0.71% Month 0.14% Year 7.55%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
7,340.30 48,768.30 1,540.52 10,207.60 31,152.03
7,156.29 30,808.38 3,540.23
46,079.97 1,479.98 9,766.10 3,501.30

Day -0.96% Month 3.32% Year 19.95% Day -0.94% Month -5.50% Year -7.23% Day 0.14% Month 3.65% Year -1.01% Day -0.49% Month 4.51% Year -6.33% Day -1.23% Month 1.12% Year 23.83% Day -0.62% Month 1.11% Year 8.75%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
5,553.16 3,192.12 35,543.94
24,573.04 24,671.85 24,297.17
84,941.31
84,334.41 3,110.65 34,192.65
5,315.02 23,330.32
Day -0.91% Month 1.37% Year 18.18% Day -0.34% Month 0.73% Year 24.06% Day 0.23% Month 4.48% Year 2.73% Day 0.31% Month 4.14% Year 11.95% Day 0.57% Month 1.05% Year 3.52% Day -0.04% Month 3.95% Year 17.74%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 31477.64 30441.60 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 26586.35 26546.49 Philippines Manila Comp 7885.97 7752.11 Taiwan Weighted Pr 10874.73 10952.39 Cross-Border DJ Global Titans ($) 304.02 306.74
Australia All Ordinaries 6198.70 6235.00 Czech RepublicPX 1106.30 1104.33 FTSE Italia Mid Cap 43522.32 43951.82 Poland Wig 59674.37 60738.69 Thailand Bangkok SET 1766.86 1773.10 Euro Stoxx 50 (Eur) 3564.53 3565.74
S&P/ASX 200 6097.80 6135.30 Denmark OMXC Copenahgen 20 1001.42 1020.14 FTSE MIB 24297.17 24221.47 Portugal PSI 20 5699.72 5692.66 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 1071.49 1071.23
S&P/ASX 200 Res 4439.00 4484.90 Egypt EGX 30 16984.07 16984.07 Japan 2nd Section 7218.09 7172.92 PSI General 3253.00 3244.74 UAE Abu Dhabi General Index 4446.81 4424.99 FTSE 4Good Global ($) 6662.79 6724.25
Austria ATX 3531.05 3512.71 Estonia OMX Tallinn 1257.49 1259.06 Nikkei 225 22818.02 22865.86 Romania BET Index 8680.00 8755.58 UK FT 30 3287.20 3292.20 FTSE All World ($) 341.08 344.11
Belgium BEL 20 3876.57 3885.74 Finland OMX Helsinki General 10217.90 10204.33 S&P Topix 150 1451.45 1452.20 Russia Micex Index 2285.53 2285.76 FTSE 100 7722.98 7710.98 FTSE E300 1540.52 1538.32
BEL Mid 7347.22 7370.69 France CAC 40 5553.16 5540.68 Topix 1805.15 1805.92 RTX 1179.29 1202.56 FTSE 4Good UK 6950.70 6945.76 FTSE Eurotop 100 2970.08 2964.85
Brazil Bovespa 84941.31 85232.18 SBF 120 4431.53 4431.18 Jordan Amman SE 2134.14 2135.07 Saudi-Arabia TADAWUL All Share Index 8070.69 8023.01 FTSE All Share 4241.88 4236.83 FTSE Global 100 ($) 1699.09 1716.46
Canada S&P/TSX 60 955.09 954.67 Germany M-DAX 26570.33 26644.50 Kenya NSE 20 3602.33 3635.76 Singapore FTSE Straits Times 3540.23 3562.46 FTSE techMARK 100 4680.54 4683.50 FTSE Gold Min ($) 1476.03 1476.39
S&P/TSX Comp 16095.33 16085.61 TecDAX 2772.26 2773.24 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 335.72 335.28 USA DJ Composite 8225.12 8294.47 FTSE Latibex Top (Eur) 4451.10 4518.50
S&P/TSX Div Met & Min 1045.17 1022.73 XETRA Dax 12970.04 12977.71 Latvia OMX Riga 1039.60 1069.31 Slovenia SBI TOP 888.49 883.82 DJ Industrial 24671.85 24899.41 FTSE Multinationals ($) 1997.04 1993.37
Chile IGPA Gen 28729.32 28783.24 Greece Athens Gen 799.37 815.99 Lithuania OMX Vilnius 713.30 710.19 South Africa FTSE/JSE All Share 57891.77 58614.45 DJ Transport 10609.37 10663.16 FTSE World ($) 602.52 607.77
China FTSE A200 10256.42 10225.30 FTSE/ASE 20 2103.37 2138.82 Luxembourg LuxX 1659.35 1701.99 FTSE/JSE Res 20 40092.25 39412.81 DJ Utilities 678.48 686.59 FTSEurofirst 100 (Eur) 4392.50 4384.83
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 31152.03 31541.08 Malaysia FTSE Bursa KLCI 1848.20 1850.42 FTSE/JSE Top 40 51333.23 52000.48 Nasdaq 100 6871.44 6964.37 FTSEurofirst 80 (Eur) 5004.03 5004.02
Shanghai A 3343.27 3324.19 HS China Enterprise 12440.75 12544.55 Mexico IPC 46079.97 46519.29 South Korea Kospi 2458.54 2476.11 Nasdaq Cmp 7340.30 7411.32 MSCI ACWI Fr ($) 520.58 519.46
Shanghai B 320.95 321.00 HSCC Red Chip 4642.88 4667.87 Morocco MASI 12814.08 12876.00 Kospi 200 314.94 317.72 NYSE Comp 12702.35 12772.03 MSCI All World ($) 2136.09 2131.96
Shanghai Comp 3192.12 3173.96 Hungary Bux 37663.78 38602.89 Netherlands AEX 564.49 563.52 Spain IBEX 35 10207.60 10257.80 S&P 500 2707.97 2730.13 MSCI Europe (Eur) 1631.99 1631.85
Shenzhen A 1924.33 1906.89 India BSE Sensex 35543.94 35556.71 AEX All Share 835.62 834.31 Sri Lanka CSE All Share 6456.32 6444.96 Wilshire 5000 28167.60 28362.03 MSCI Pacific ($) 2896.56 2882.00
Shenzhen B 1106.60 1104.16 Nifty 500 9365.90 9389.95 New Zealand NZX 50 8708.78 8713.23 Sweden OMX Stockholm 30 1604.58 1598.58 Venezuela IBC 19927.46 17737.73 S&P Euro (Eur) 1677.89 1678.02
Colombia COLCAP 1550.08 1552.64 Indonesia Jakarta Comp 5885.10 5994.60 Nigeria SE All Share 41022.31 40914.94 OMX Stockholm AS 586.17 584.30 Vietnam VNI 1073.50 1066.98 S&P Europe 350 (Eur) 1586.80 1583.78
Croatia CROBEX 1846.43 1843.09 Ireland ISEQ Overall 6990.70 7010.48 Norway Oslo All Share 1006.40 999.63 Switzerland SMI Index 8994.22 9000.89 S&P Global 1200 ($) 2365.83 2384.05
Israel Tel Aviv 125 1340.72 1329.25 Pakistan KSE 100 42459.53 42498.86 Stoxx 50 (Eur) 3141.38 3136.44
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO May 15 %Chg %Chg May 15 %Chg %Chg May 15 %Chg %Chg May 15 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Amazon.com 45.1 1569.50 -32.04 Bp 414.2 577.20 6.70 Abertis Infr 14315.9 18.31 0.03 Sumitomo Mitsui Fin,. 640.7 4648.00 95.00 Paddy Power Betfair 7760.00 12.5 -12.8 Bakkavor 202.00 11.0 4.7 Sportech 78.20 25.1 -2.3 Oil Equipment & Services 14671.61 13.3 13.9
Nvidia 34.3 243.90 -11.46 Vodafone 360.4 198.38 -8.82 Royal Dutch Shella 384.9 30.62 0.40 Mitsubishi Ufj Fin,. 456.9 737.10 12.40 Itv 165.65 10.2 -1.3 Worldwide Healthcare Trust 2560.00 3.6 1.6 Soco Int 110.00 7.8 -4.3 Mining 19467.78 5.5 4.2
Apple 19.3 186.08 -2.07 Shire 274.1 4182.50 45.50 Total 302.6 53.90 0.20 Takeda Pharmaceutical 456.8 4695.00 -103.00 Next 5628.00 8.7 25.1 British Empire Trust 753.00 3.0 3.9 Puretech Health 160.00 11.1 7.4 Oil & Gas Producers 9911.14 5.5 10.1
Facebook 15.4 183.97 -2.67 Royal Dutch Shell 239.1 2691.00 30.00 Sap Se O.n. 290.8 95.50 -1.35 Toyota Motor 437.4 7514.00 -46.00 Bhp Billiton 1712.20 8.6 12.0 Herald Investment Trust 1290.00 2.0 10.3 Medica 135.00 8.5 -33.2 Banks 4530.87 3.3 -1.8
Micron Technology 14.2 53.70 0.70 Bhp Billiton 224.9 1712.20 -8.80 Intesa Sanpaolo 281.9 3.18 0.03 Mizuho Fin,. 331.2 201.30 1.60 Royal Bank Of Scotland 293.30 7.4 5.8 Jpmorgan American Investment Trust 409.00 2.5 1.7 Circassia Pharmaceuticals 93.50 4.6 -5.1 Automobiles & Parts 10352.65 3.2 40.1
Home Depot 11.6 187.54 -3.54 Hsbc Holdings 213.8 738.60 5.60 Eni 276.5 16.76 0.09 Shiseido , 288.8 8100.00 -230.00 Antofagasta 1051.50 5.8 5.0 3i Infrastructure 225.00 2.1 -15.2 Nostrum Oil & Gas 280.00 6.3 -13.0 Electronic & Electrical Equip. 6911.12 2.8 5.1
Bank Of America 9.4 31.29 0.17 Royal Dutch Shell 186.4 2772.50 33.50 Nestle N 275.6 64.79 -0.27 Tokyo Electric Power ,orporated 271.1 578.00 -9.00 Glencore 379.30 5.6 -3.8 City Of London Investment Trust 436.00 2.1 -0.5 4imprint 1960.00 5.9 4.0 Industrial Engineering 13445.42 2.6 7.8
Microsoft 9.4 96.96 -1.07 Anglo American 176.1 1802.60 -38.20 Roche Gs 252.3 189.95 0.76 Mitsubishi Estate , 245.5 2015.50 -110.50 Royal Dutch Shell 2691.00 5.5 8.7 Witan Investment Trust 1096.00 2.0 1.9 Bloomsbury Publishing 189.75 5.7 1.2 Household Goods 16813.91 2.2 -9.6
Netflix 8.2 325.11 -3.42 British American Tobacco 175.6 3826.50 15.50 Orange 243.6 14.53 -0.48 Softbank . 230.3 8579.00 -49.00 Coca-cola Hbc Ag 2599.00 5.3 9.2 Mercantile Investment Trust (the) 2215.00 1.8 1.8 Blackrock Smaller Co Trust 1487.50 5.9 14.6 General Retailers 2489.75 2.1 -2.0
Alphabet 7.4 1087.82 -18.78 Glencore 156.7 379.30 -5.90 Siemens Ag Na 242.5 116.18 0.70 Fast Retailing Co., 220.4 49180.00 590.00 Royal Dutch Shell 2772.50 5.3 10.9 Polar Capital Technology Trust 1220.00 2.0 7.6 Premier Foods 38.00 5.3 -10.8 Aerospace & Defense 5149.42 2.1 5.5
Taylor Wimpey 202.30 5.1 -2.8 Equiniti 279.50 1.3 -2.6 Bb Healthcare Trust 116.50 5.0 0.9 Personal Goods 35837.99 1.9 -1.1
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Rio Tinto 4229.50 5.1 6.0 Syncona 212.50 1.2 5.5 Jpmorgan Smaller Companies Investment Trust 1247.50 4.4 14.4 General Financial 11375.66 1.8 2.8
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Mattel 14.96 0.77 5.39 Coats 83.50 6.00 7.74 Seadrill 0.29 0.04 15.23 Nippon Sheet Glass , 1166.00 83.00 7.66 Bt 206.80 -12.5 -24.8 Capita 130.10 -34.5 -68.3 Carpetright 32.50 -18.7 -81.2 Fixed Line Telecommunication 2413.90 -11.7 -
Nektar Therapeutics 84.70 3.77 4.66 Computacenter 1346.00 60.00 4.67 Raiffeisen Bank Internat. Ag 30.10 1.32 4.59 Kuraray Co., 1897.00 90.00 4.98 Vodafone 198.38 -4.4 -15.1 Superdry 1153.00 -25.6 -41.8 Arrow Global 315.50 -13.4 -19.6 Mobile Telecommunications 4355.12 -4.1 -15.6
Under Armour 19.12 0.68 3.69 Just 144.00 6.30 4.58 Commerzbank Ag 11.01 0.41 3.87 Konica Minolta Holdings, . 1007.00 35.00 3.60 Burberry 1803.50 -4.3 1.1 Greggs 1020.00 -19.5 -26.1 Moss Bros 47.05 -3.0 -46.2 Gas Water & Multiutilities 4978.55 -1.0 -3.6
Under Armour 17.25 0.59 3.54 Taylor Wimpey 202.30 7.20 3.69 Oci 23.74 0.62 2.68 Ntt Data 1220.00 39.00 3.30 Land Securities 950.00 -3.5 -4.5 Btg 590.50 -13.2 -21.7 U And I 228.50 -4.8 18.3 Real Estate Investment Trusts 3154.46 -0.5 -0.1
Cf Industries Holdings 41.60 1.13 2.79 Firstgroup 113.40 3.80 3.47 Saipem 3.49 0.08 2.44 Sony Fin Holdings . 2119.00 59.00 2.86 Centrica 148.40 -3.4 5.1 On The Beach 555.00 -9.0 16.1 Motorpoint 245.00 -6.1 14.0 Real Estate & Investment Servic 2868.87 -0.3 -2.0
Randgold Resources Ld 5808.00 -3.3 -22.0 Bca Marketplace 181.00 -6.8 -11.9 Carclo 89.00 -4.3 -28.8 Food Producers 7541.43 -0.2 -9.1
Downs Downs Downs Downs
Fresnillo 1243.00 -2.7 -13.4 Tp Icap 441.50 -6.8 -16.7 Mcbride 128.20 -4.5 -43.3 Construction & Materials 6662.78 0.0 2.0
Agilent 63.53 -5.68 -8.20 Btg 590.50 -72.00 -10.87 Iliad 133.20 -32.30 -19.52 Pioneer 162.00 -16.00 -8.99
Admiral 1947.50 -2.6 -0.1 Sig 138.20 -4.5 -21.6 Ite 137.40 -6.1 -23.7 Nonlife Insurance 3249.21 0.1 0.8
D.r. Horton 41.25 -2.26 -5.19 Cybg 305.00 -18.20 -5.63 Thyssenkrupp Ag O.n. 21.75 -1.50 -6.45 Ebara 3975.00 -365.00 -8.41
Int Consolidated Airlines S.a. 685.80 -2.1 2.5 Hochschild Mining 212.00 -4.2 -19.4 Nanoco 46.70 -2.7 81.7 Industrial Transportation 3685.74 0.2 10.5
Nvidia 243.90 -11.46 -4.49 Purecircle 341.50 -18.00 -5.01 Merck Kgaa O.n. 79.70 -5.34 -6.28 Nisshin Seifun . 2299.00 -164.00 -6.66
Mediclinic Int 684.80 -2.0 5.5 Grafton 765.00 -4.3 -3.9 Mj Gleeson 738.00 -1.1 -6.0 Health Care Equip.& Services 8028.26 0.4 6.0
Mettler-toledo Int 548.17 -20.75 -3.65 Vodafone 198.38 -8.82 -4.26 Ses 12.97 -0.76 -5.57 Mitsubishi Estate , 2015.50 -110.50 -5.20
Old Mutual 252.00 -2.0 10.1 Ted Baker 2648.00 -4.2 -4.2 Kcom 100.20 -2.7 11.0 Industrial Metals 4764.13 0.7 23.7
Waters 190.70 -6.26 -3.18 Polymetal Int 685.40 -27.00 -3.79 Orange 14.53 -0.48 -3.20 Kajima 1013.00 -36.00 -3.43
Whitbread 4180.00 -1.8 5.3 Card Factory 212.00 -4.3 -27.9 Costain 468.50 -2.8 1.4 General Industrials 6910.86 0.8 8.5
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
May 15 Currency Mid Change Mid Change Mid Change May 15 Currency Mid Change Mid Change Mid Change May 15 Currency Mid Change Mid Change Mid Change May 15 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 24.9950 0.4600 29.6490 0.2844 33.7346 0.3791 Indonesia Indonesian Rupiah 14037.0000 68.0000 16650.6543 -68.0913 18945.1349 -45.8729 Poland Polish Zloty 3.6225 0.0593 4.2971 0.0325 4.8892 0.0450 ..Three Month 0.7415 0.0054 0.8787 -0.0015 - -
Australia Australian Dollar 1.3377 0.0140 1.5868 0.0025 1.8054 0.0058 Israel Israeli Shekel 3.5917 0.0124 4.2605 -0.0233 4.8476 -0.0185 Romania Romanian Leu 3.9085 0.0431 4.6363 0.0100 5.2751 0.0202 ..One Year 0.7434 0.0054 0.8778 -0.0015 - -
Bahrain Bahrainin Dinar 0.3772 - 0.4474 -0.0040 0.5091 -0.0037 Japan Japanese Yen 110.3200 0.7700 130.8613 -0.2531 148.8940 -0.0402 Russia Russian Ruble 62.4988 0.8100 74.1359 0.3040 84.3518 0.4854 United States United States Dollar - - 1.1862 -0.0106 1.3497 -0.0099
Bolivia Bolivian Boliviano 6.9100 - 8.1966 -0.0736 9.3261 -0.0681 ..One Month 110.3198 0.7696 130.8613 -0.2530 148.8939 -0.0404 Saudi Arabia Saudi Riyal 3.7504 0.0001 4.4487 -0.0398 5.0617 -0.0368 ..One Month - - 1.1859 -0.1733 1.3498 -0.0099
Brazil Brazilian Real 3.6753 0.0562 4.3596 0.0282 4.9604 0.0403 ..Three Month 110.3193 0.7686 130.8614 -0.2529 148.8937 -0.0408 Singapore Singapore Dollar 1.3438 0.0104 1.5940 -0.0019 1.8136 0.0008 ..Three Month - - 1.1854 -0.1733 1.3502 -0.0098
Canada Canadian Dollar 1.2886 0.0119 1.5285 0.0005 1.7391 0.0035 ..One Year 110.3169 0.7638 130.8615 -0.2526 148.8939 -0.0418 South Africa South African Rand 12.5875 0.3081 14.9313 0.2347 16.9888 0.2948 ..One Year - - 1.1825 -0.1733 1.3522 -0.0098
Chile Chilean Peso 632.1500 9.2000 749.8547 4.2800 853.1845 6.2787 Kenya Kenyan Shilling 100.4000 0.2000 119.0942 -0.8297 135.5054 -0.7174 South Korea South Korean Won 1073.9500 6.0500 1273.9168 -4.1941 1449.4623 -2.3569 Venezuela Venezuelan Bolivar Fuerte 69912.5000 87.5000 82930.0262 -639.6840 94357.7666 -569.9075
China Chinese Yuan 6.3544 0.0177 7.5376 -0.0465 8.5762 -0.0385 Kuwait Kuwaiti Dinar 0.3018 0.0004 0.3580 -0.0028 0.4073 -0.0025 Sweden Swedish Krona 8.7245 0.1200 10.3489 0.0507 11.7750 0.0772 Vietnam Vietnamese Dong 22770.5000 3.0000 27010.3098 -238.9088 30732.3519 -220.3091
Colombia Colombian Peso 2888.5650 51.9850 3426.4095 31.4624 3898.5671 42.2117 Malaysia Malaysian Ringgit 3.9560 0.0035 4.6926 -0.0379 5.3392 -0.0342 Switzerland Swiss Franc 1.0017 0.0037 1.1882 -0.0062 1.3519 -0.0048 European Union Euro 0.8430 0.0075 - - 1.1378 0.0019
Costa Rica Costa Rican Colon 565.2700 -0.5800 670.5218 -6.7130 762.9196 -6.3583 Mexico Mexican Peson 19.7823 0.2637 23.4657 0.1050 26.6992 0.1636 Taiwan New Taiwan Dollar 29.8455 0.0985 35.4027 -0.1999 40.2811 -0.1602 ..One Month 0.8428 0.0075 - - 1.1377 0.0019
Czech Republic Czech Koruna 21.5605 0.2671 25.5749 0.0901 29.0992 0.1507 New Zealand New Zealand Dollar 1.4551 0.0132 1.7260 0.0003 1.9638 0.0036 Thailand Thai Baht 31.9300 0.1050 37.8753 -0.2143 43.0945 -0.1719 ..Three Month 0.8422 0.0075 - - 1.1376 0.0019
Denmark Danish Krone 6.2786 0.0537 7.4477 -0.0026 8.4740 0.0111 Nigeria Nigerian Naira 361.5000 -0.5000 428.8104 -4.4476 487.9004 -4.2417 Tunisia Tunisian Dinar 2.5072 0.0161 2.9740 -0.0074 3.3838 -0.0028 ..One Year 0.8394 0.0075 - - 1.1367 0.0019
Egypt Egyptian Pound 17.8298 0.0283 21.1497 -0.1560 24.0641 -0.1372 Norway Norwegian Krone 8.1152 0.1152 9.6262 0.0515 10.9527 0.0767 Turkey Turkish Lira 4.4556 0.1350 5.2852 0.1141 6.0135 0.1396
Hong Kong Hong Kong Dollar 7.8500 0.0005 9.3116 -0.0830 10.5947 -0.0767 Pakistan Pakistani Rupee 115.5850 - 137.1066 -1.2307 155.9999 -1.1389 United Arab Emirates UAE Dirham 3.6731 0.0001 4.3570 -0.0389 4.9574 -0.0360
Hungary Hungarian Forint 267.2189 3.7731 316.9743 1.6706 360.6533 2.4967 Peru Peruvian Nuevo Sol 3.2720 0.0090 3.8812 -0.0241 4.4161 -0.0200 United Kingdom Pound Sterling 0.7409 0.0054 0.8789 -0.0015 - -
India Indian Rupee 67.9925 0.4040 80.6525 -0.2404 91.7664 -0.1206 Philippines Philippine Peso 52.4055 0.2040 62.1633 -0.3138 70.7294 -0.2390 ..One Month 0.7411 0.0054 0.8788 -0.0015 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries May 15 May 14 May 11 May 10 May 09 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 3287.20 3292.20 3309.60 3299.00 3273.30 0.00 3377.70 2974.50 Automobiles & Parts 40.13 Electronic & Elec Eq 5.13 Personal Goods -0.57 FTSE 100 Price Change FTSE 100 Price Change
May 15 chge% Index May 14 May 11 ago yield% Cover ratio adj Return FT 30 Div Yield 1.92 1.92 1.91 1.91 1.92 0.00 3.93 2.74 Tech Hardware & Eq 33.06 Health Care Eq & Srv 4.91 Real Est Invest & Se -0.71 3I Group PLC 984.40 11.40 London Stock Exchange Group PLC 4475 58.00
FTSE 100 (100) 7722.98 0.16 6854.01 7710.98 7724.55 7522.03 3.80 1.88 13.98 132.21 6669.41 P/E Ratio net 23.28 23.23 23.34 23.35 23.24 0.00 19.44 14.26 Industrial Metals & 27.94 Mining 4.88 Utilities -0.77 Admiral Group PLC 1947.5 17.50 Marks And Spencer Group PLC 288.00 -1.60
FTSE 250 (250) 20784.92 -0.08 18446.27 20800.95 20785.56 19875.89 2.65 2.47 15.28 200.78 15437.65 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food & Drug Retailer 17.34 Consumer Services 3.43 Travel & Leisure -0.93 Anglo American PLC 1802.6 -38.20 Mediclinic International PLC 684.80 -19.80
FTSE 250 ex Inv Co (198) 22373.71 -0.11 19856.29 22397.56 22378.20 21299.97 2.74 1.96 18.67 222.03 16962.59 FT 30 hourly changes Industrial Transport 13.70 Industrials 3.41 Beverages -1.42 Antofagasta PLC 1051.5 3.50 Melrose Industries PLC 232.60 1.00
FTSE 350 (350) 4295.53 0.12 3812.21 4290.53 4296.28 4170.50 3.61 1.96 14.18 68.10 7435.88 8 9 10 11 12 13 14 15 16 High Low Oil Equipment & Serv 11.24 Life Insurance 3.17 General Retailers -1.66 Ashtead Group PLC 2252 13.00 Micro Focus International PLC 1269 -9.00
FTSE 350 ex Investment Trusts (297) 4259.15 0.12 3779.92 4253.97 4259.85 4136.37 3.65 1.88 14.57 68.58 3799.82 3292.2 3295 3296 3296.5 3296.6 3301 3292.1 3286 3292.2 3303.6 3284.4 Chemicals 8.98 Financial Services 2.51 Banks -1.71 Associated British Foods PLC 2725 -10.00 Mondi PLC 1998 18.50
FTSE 350 Higher Yield (109) 3943.06 0.18 3499.40 3935.83 3936.63 3887.95 4.81 1.63 12.76 80.24 7230.62 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Forestry & Paper 8.22 Construct & Material 2.46 Gas Water & Multi -3.07 Astrazeneca PLC 5292 -3.00 Morrison (Wm) Supermarkets PLC 252.40 1.00
FTSE 350 Lower Yield (241) 4245.33 0.04 3767.66 4243.52 4254.47 4051.18 2.29 2.71 16.16 46.51 4748.53 Oil & Gas 7.90 FTSE SmallCap Index 1.17 Food Producers -8.03 Aviva PLC 544.20 6.20 National Grid PLC 837.00 -13.30
FTSE SmallCap (283) 6002.50 0.19 5327.12 5991.01 5980.98 5632.03 3.07 2.85 11.42 64.17 8808.52 Oil & Gas Producers 7.82 Nonlife Insurance 0.97 Leisure Goods -9.02
FTSE SmallCap ex Inv Co (155) 5257.56 0.44 4666.00 5234.31 5221.42 5025.12 3.03 1.56 21.18 52.22 8106.03 FX: EFFECTIVE INDICES Industrial Eng 7.34 Real Est Invest & Tr 0.91 Consumer Goods -10.22
Bae Systems PLC 637.40 6.20 Next PLC 5628 26.00
Barclays PLC 211.60 -0.30 Nmc Health PLC 3540 -52.00
FTSE All-Share (633) 4241.88 0.12 3764.60 4236.83 4242.04 4113.10 3.59 1.98 14.06 66.44 7421.86 Electricity 7.23 Equity Invest Instr 0.82 Household Goods & Ho -10.86
May 14 May 11 Mnth Ago May 15 May 14 Mnth Ago Barratt Developments PLC 568.20 15.00 Old Mutual PLC 252.00 -4.20
FTSE All-Share ex Inv Co (452) 4181.05 0.13 3710.61 4175.68 4181.12 4059.21 3.64 1.87 14.67 66.79 3790.10 Media 6.81 NON FINANCIALS Index 0.54 Mobile Telecomms -10.95 Berkeley Group Holdings (The) PLC 4200 63.00 Paddy Power Betfair PLC 7760 -215.00
FTSE All-Share ex Multinationals (566) 1283.86 -0.23 944.36 1286.79 1290.65 1240.11 3.28 1.85 16.45 15.70 2362.02 Australia 91.74 91.63 92.34 Sweden 74.05 74.30 73.35 Pharmace & Biotech 6.32 FTSE 100 Index 0.48 Telecommunications -13.15 Bhp Billiton PLC 1712.2 -8.80 Pearson PLC 908.40 -1.20
FTSE Fledgling (93) 11095.59 0.20 9847.15 11073.33 11071.60 9978.86 2.70 2.74 13.49 100.44 21267.37 Canada 91.13 91.04 91.85 Switzerland 148.40 148.36 149.77 Health Care 6.16 FTSE All{HY-}Share Index 0.48 Technology -17.76 BP PLC 577.20 6.70 Persimmon PLC 2817 51.00
FTSE Fledgling ex Inv Co (46) 16059.99 0.35 14252.97 16004.53 16033.60 14102.22 3.11 -0.67 -48.38 160.24 30121.14 Denmark 110.71 110.63 110.99 UK 78.92 78.75 80.94 Basic Materials 5.70 Financials 0.32 Fixed Line Telecomms -18.89 British American Tobacco PLC 3826.5 15.50 Prudential PLC 1925 19.00
FTSE All-Small (376) 4183.05 0.19 3712.39 4175.03 4168.35 3916.75 3.06 2.84 11.51 44.38 7879.21 Japan 137.10 137.43 137.67 USA 98.82 98.88 96.50 Aerospace & Defense 5.17 FTSE 250 Index 0.29 Software & Comp Serv -20.28 British Land Company PLC 684.20 -6.20 Randgold Resources LD 5808 -100.00
FTSE All-Small ex Inv Co (201) 3952.87 0.44 3508.11 3935.53 3926.45 3766.12 3.03 1.48 22.35 39.28 7721.68 New Zealand 112.87 113.37 117.31 Euro 95.42 95.32 95.84 Support Services 0.16 Tobacco -20.90 Bt Group PLC 206.80 -5.00 Reckitt Benckiser Group PLC 5800 25.00
FTSE AIM All-Share (814) 1082.92 -0.13 961.07 1084.31 1080.79 977.92 1.28 1.07 73.14 5.32 1205.65 Norway 87.96 88.11 88.12
Bunzl PLC 2228 -3.00 Relx PLC 1586.5 5.50
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1803.5 -3.00 Rentokil Initial PLC 318.20 -1.30
Oil & Gas (14) 10343.77 1.20 9179.92 10220.67 10147.49 8420.55 4.74 0.85 24.74 239.47 10114.00 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 4912 37.00 Rio Tinto PLC 4229.5 -11.50
Oil & Gas Producers (9) 9957.02 1.19 8836.68 9840.20 9769.00 8056.04 4.77 0.86 24.36 231.18 10083.89 Centrica PLC 148.40 -0.75 Rolls-Royce Holdings PLC 840.80 15.20
Oil Equipment Services & Distribution (5)15468.01 1.99 13727.60 15165.73 15109.10 15864.22 3.17 0.36 88.21 312.40 12479.02 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2599 28.00 Royal Bank Of Scotland Group PLC 293.30 0.30
Basic Materials (30) 6615.27 -0.84 5870.94 6671.58 6677.53 5182.19 3.69 2.18 12.41 146.01 7038.88 Compass Group PLC 1559 33.50 Royal Dutch Shell PLC 2772.5 33.50
Chemicals (9) 16272.05 -0.07 14441.17 16283.74 16410.08 14439.05 1.87 2.25 23.72 98.13 14805.96 May 14 No of US $ Day Mth YTD Total
YTD Gr Div May 14 No of US $ Day Mth YTD Total YTD Gr Div Crh PLC 2676 2.00 Royal Dutch Shell PLC 2691 30.00
Forestry & Paper (1) 24543.43 0.93 21781.88 24316.17 24561.85 23988.96 2.77 3.12 11.58 463.33 27533.28 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Croda International PLC 4571 -21.00 Royal Mail PLC 609.00 -4.80
Industrial Metals & Mining (2) 5131.73 -1.74 4554.32 5222.71 5305.01 2354.81 7.55 1.85 7.15 173.38 4941.72 FTSE Global All Cap 7848 590.63 0.2 1.9 1.5 857.02
2.5 2.3 Oil & Gas Producers 110 411.25 0.9 0.9 9.3 698.52 10.7 3.2 Dcc PLC 7230 10.00 Rsa Insurance Group PLC 655.40 6.60
Mining (18) 18599.76 -0.99 16506.97 18786.09 18775.51 14319.65 3.87 2.16 11.95 443.89 10386.06 FTSE Global Large Cap 1451 518.88 0.3 2.0 1.4 773.28
2.5 2.4 Oil Equipment & Services 29 313.28 0.5 0.5 -0.5 466.43 0.8 3.5 Diageo PLC 2675 12.00 Sage Group PLC 662.40 -6.00
FTSE Global Mid Cap 1728 795.12 0.0 1.7 1.3 1091.75
2.1 2.0 Basic Materials 260 548.61 0.6 0.6 0.6 857.71 1.9 2.7 Direct Line Insurance Group PLC 370.30 7.20 Sainsbury (J) PLC 304.00 -0.60
Industrials (108) 5675.47 0.36 5036.88 5654.94 5684.14 5469.63 2.30 2.30 18.91 51.05 5976.62
Construction & Materials (15) 7005.53 0.33 6217.29 6982.38 7036.17 7294.67 2.27 0.70 63.24 101.84 7628.61 FTSE Global Small Cap 4669 845.12 0.0 2.0 2.2 1121.37
2.9 1.8 Chemicals 121 794.58 0.5 0.5 -1.4 1244.64 -0.3 2.4 Easyjet PLC 1741 56.00 Schroders PLC 3432 21.00
Aerospace & Defense (9) 5360.62 1.14 4757.46 5300.12 5340.50 5499.15 2.32 5.64 7.63 66.37 5877.39 FTSE All-World 3179 344.11 0.2 1.9 1.4 527.73
2.4 2.3 Forestry & Paper 16 342.38 0.2 0.2 11.1 598.43 13.2 2.7 Evraz PLC 495.80 -6.40 Scottish Mortgage Investment Trust PLC 502.00 -6.50
General Industrials (7) 5604.97 0.36 4974.31 5584.79 5615.84 4879.23 2.68 1.28 29.21 62.49 6556.98 FTSE World 2602 607.77 0.2 1.9 1.4 1251.74
2.5 2.4 Industrial Metals & Mining 69 487.84 0.8 0.8 0.0 757.05 0.9 2.6 Experian PLC 1711.5 -3.50 Segro PLC 650.20 0.60
Electronic & Electrical Equipment (11) 8473.56 0.17 7520.14 8458.85 8483.48 7619.79 1.58 2.17 29.22 23.98 7826.35 FTSE Global All Cap ex UNITED KINGDOM In 7526 613.08 0.2 2.0 1.5 875.28
2.5 2.2 Mining 54 683.22 0.6 0.6 4.0 1074.32 6.1 3.3 Ferguson PLC 5672 22.00 Severn Trent PLC 1964.5 -6.50
Industrial Engineering (13) 14830.26 0.65 13161.61 14734.73 14760.50 12810.05 1.82 1.94 28.34 167.21 18480.03 FTSE Global All Cap ex USA 5980 530.48 0.3 1.0 0.6 827.86
1.9 2.8 Industrials 570 415.81 0.0 0.0 0.2 609.37 1.1 2.0 Fresnillo PLC 1243 -43.50 Shire PLC 4182.5 45.50
Industrial Transportation (6) 5841.26 -0.74 5184.02 5884.88 6001.09 4932.72 3.59 1.49 18.72 46.93 5397.99 FTSE Global All Cap ex JAPAN 6521 602.42 0.2 1.9 1.4 882.33
2.4 2.3 Construction & Materials 115 546.43 0.0 0.0 -1.8 837.07 -0.7 2.0 G4S PLC 261.90 -1.00 Sky PLC 1369.5 12.50
Support Services (47) 7885.45 0.15 6998.20 7873.82 7894.57 7688.62 2.26 2.01 21.98 45.53 8331.70 FTSE Global All Cap ex Eurozone 7178 609.14 0.2 2.1 1.4 866.62
2.3 2.2 Aerospace & Defense 27 824.64 -0.6 -0.6 7.2 1195.50 8.0 1.8 Glaxosmithkline PLC 1470 -6.40 Smith & Nephew PLC 1304 -2.00
FTSE Developed 2140 552.17 0.2 2.2 1.5 808.33
2.6 2.3 General Industrials 59 227.39 0.3 0.3 -5.3 360.90 -4.3 2.4 Glencore PLC 379.30 -5.90 Smith (Ds) PLC 543.80 3.80
Consumer Goods (42) 20037.14 0.32 17782.63 19974.19 20076.29 22634.33 3.55 4.63 6.08 268.24 15276.15
FTSE Developed All Cap 5700 581.61 0.2 2.2 1.6 840.65
2.6 2.3 Electronic & Electrical Equipment 75 472.34 0.7 0.7 2.4 631.97 3.0 1.6 Halma PLC 1296 4.00 Smiths Group PLC 1660 5.00
Automobiles & Parts (1) 10405.70 2.40 9234.88 10161.81 10486.99 8279.21 0.45 0.00 0.00 181.68 10314.79
FTSE Developed Large Cap 922 508.88 0.2 2.2 1.5 756.94
2.6 2.4 Industrial Engineering 106 824.59 0.1 0.1 -4.6 1194.71 -3.4 2.1 Hargreaves Lansdown PLC 1921.5 46.50 Smurfit Kappa Group PLC 3108 -14.00
Beverages (5) 21500.07 0.46 19080.95 21400.83 21500.67 18693.40 2.34 1.93 22.07 184.00 15529.41
FTSE Developed Europe Large Cap 243 386.63 0.2 0.5 0.2 667.66
2.2 3.4 Industrial Transportation 106 721.90 -0.1 -0.1 0.7 1058.58 1.5 2.1 HSBC Holdings PLC 738.60 5.60 Sse PLC 1399.5 -12.50
Food Producers (12) 7676.92 -0.49 6813.13 7714.65 7720.17 8488.34 2.22 2.36 19.10 8.44 6707.54
FTSE Developed Europe Mid Cap 320 649.99 0.1 0.9 1.9 996.16
3.2 2.6 Support Services 82 397.73 -0.4 -0.4 3.8 556.74 4.6 1.7 Imperial Brands PLC 2745.5 -19.50 St. James's Place PLC 1181.5 7.00
Household Goods & Home Construction (15)14052.41 1.35 12471.27 13865.19 13905.68 15513.95 4.12 2.22 10.92 262.77 10313.33
FTSE Dev Europe Small Cap 714 926.97 0.1 0.6 2.1 1373.10
3.3 2.4 Consumer Goods 443 485.22 0.0 0.0 -4.8 733.59 -3.8 2.5 Informa PLC 757.00 0.40 Standard Chartered PLC 765.70 3.90
Leisure Goods (2) 9213.92 1.36 8177.20 9090.08 9081.96 5705.97 5.43 1.14 16.20 157.83 8779.64
FTSE North America Large Cap 283 585.74 0.2 3.0 2.1 811.35
2.9 2.0 Automobiles & Parts 107 442.72 0.0 0.0 -1.7 648.38 -0.4 2.7 Intercontinental Hotels Group PLC 4714 -13.00 Standard Life Aberdeen PLC 367.60 -1.20
Personal Goods (5) 31242.22 -0.67 27726.95 31452.59 31461.64 31410.54 2.99 3.22 10.38 418.04 21706.60
FTSE North America Mid Cap 396 850.32 -0.1 2.4 1.3 1093.23
1.9 1.7 Beverages 45 622.65 -0.3 -0.3 -7.5 953.63 -6.7 2.7 International Consolidated Airlines Group S.A. 685.80 -6.00 Taylor Wimpey PLC 202.30 7.20
Tobacco (2) 42743.56 0.15 37934.19 42680.30 43103.28 60735.11 4.43 7.73 2.92 633.02 28679.94
FTSE North America Small Cap 1402 882.96 -0.2 3.2 2.7 1101.19
3.2 1.5 Food Producers 111 590.20 0.2 0.2 -6.8 917.38 -5.4 2.4 Intertek Group PLC 5092 36.00 Tesco PLC 246.90 1.10
Health Care (22) 10160.87 -0.14 9017.60 10174.81 10100.18 10812.77 3.37 1.07 27.70 198.76 8137.38
FTSE North America 679 390.27 0.1 2.9 2.0 553.02
2.7 1.9 Household Goods & Home Construction 49 407.57 0.1 0.1 -13.5 612.29 -12.4 3.0 Itv PLC 165.65 -2.45 Tui AG 1782 16.50
Health Care Equipment & Services (10) 8138.25 -0.74 7222.56 8199.22 8121.45 8377.96 1.51 2.45 26.92 68.90 7166.65
FTSE Developed ex North America 1461 278.34 0.3 1.2 0.8 468.14
2.4 2.9 Leisure Goods 34 248.20 -0.6 -0.6 3.7 331.02 4.2 1.4 Johnson Matthey PLC 3444 1.00 Unilever PLC 4108.5 -29.00
Pharmaceuticals & Biotechnology (12)13648.45 -0.06 12112.77 13656.39 13560.04 14580.70 3.61 1.00 27.80 286.36 9775.19
FTSE Japan Large Cap 193 403.36 0.5 2.4 2.0 532.69
3.1 2.0 Personal Goods 84 798.81 0.6 0.6 5.8 1137.98 6.7 1.9 Just Eat PLC 805.80 -8.60 United Utilities Group PLC 758.00 -5.60
Consumer Services (93) 5377.62 0.03 4772.55 5376.20 5357.18 5106.91 2.53 2.19 18.08 51.41 5168.72 FTSE Japan Mid Cap 316 681.91 0.2 3.1 3.0 861.02
3.9 1.6 Tobacco 13 1118.16 -0.3 -0.3 -20.6 2382.82 -19.7 4.7
Food & Drug Retailers (6) 3987.39 0.14 3538.74 3981.87 3999.94 3096.12 1.08 2.98 31.23 2.83 4707.50 Kingfisher PLC 290.00 -1.40 Vodafone Group PLC 198.38 -8.82
FTSE Global wi JAPAN Small Cap 818 763.03 0.3 2.5 2.5 997.62
3.4 1.7 Health Care 195 508.31 0.8 0.8 1.0 745.25 2.1 2.0 Land Securities Group PLC 950.00 -18.70 Whitbread PLC 4180 -27.00
General Retailers (28) 2437.48 -0.06 2163.22 2438.83 2441.23 2615.79 3.29 1.81 16.77 13.73 2856.95
FTSE Japan 509 172.16 0.4 2.6 2.2 254.92
3.2 1.9 Health Care Equipment & Services 75 943.94 0.7 0.7 7.3 1109.45 7.7 1.0 Legal & General Group PLC 282.70 4.90 Wpp PLC 1277.5 -20.00
Media (22) 8108.56 -0.36 7196.21 8137.45 8195.72 7955.83 2.61 2.56 14.93 96.92 5133.70
FTSE Asia Pacific Large Cap ex Japan 535 752.63 0.6 1.0 1.0 1206.09
1.6 2.6 Pharmaceuticals & Biotechnology 120 347.13 0.8 0.8 -1.7 534.36 -0.4 2.5 Lloyds Banking Group PLC 66.78 0.11
Travel & Leisure (37) 10072.47 0.30 8939.15 10041.89 9882.78 9433.24 2.65 1.99 18.98 122.42 9793.02
FTSE Asia Pacific Mid Cap ex Japan 456 969.86 0.7 -0.1 -0.5 1490.38
0.2 2.8 Consumer Services 396 491.04 0.4 0.4 3.7 664.64 4.3 1.5
Telecommunications (6) 2786.50 -3.73 2472.98 2894.52 2938.64 3405.00 6.74 0.24 61.56 1.46 3243.17 FTSE Asia Pacific Small Cap ex Japan 1491 620.46 0.5 -1.0 0.7 936.42
1.3 2.4 Food & Drug Retailers 59 285.25 1.0 1.0 -2.5 405.30 -1.5 2.3
Fixed Line Telecommunications (4) 2484.37 -2.29 2204.84 2542.63 2598.16 3635.10 7.25 1.25 11.07 0.00 2359.32
Mobile Telecommunications (2) 4348.52 -4.23 3859.24 4540.62 4599.45 4944.65 6.56 -0.15 -100.63 3.07 4553.83
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
991 592.90
2148 810.87
0.6
0.4
0.9
-0.7
0.8 1009.22
1.5
0.5 1233.24
1.1
2.6 General Retailers
2.6 Media
130 769.44
78 325.38
0.4
0.4
0.4
0.4
11.1 1011.27
-5.1 441.66
11.7
-4.5
1.1
1.7
UK STOCK MARKET TRADING DATA
Utilities (8) 7237.03 -0.97 6422.74 7308.26 7278.20 8791.03 5.79 1.54 11.20 93.33 8596.70 FTSE Emerging Large Cap 529 773.70 0.5 -0.1 1.0 1184.99
1.6 2.5 Travel & Leisure 129 487.38 0.1 0.1 1.8 668.29 2.5 1.7 May 15 May 14 May 11 May 10 May 09 Yr Ago
Electricity (3) 8271.58 -0.57 7340.89 8318.92 8280.94 8556.28 6.17 1.37 11.81 170.77 12602.45 FTSE Emerging Mid Cap 510 969.82 -0.1 -3.3 -2.2 1466.99
-1.4 3.0 Telecommunication 92 154.66 -0.4 -0.4 -6.9 299.34 -5.6 4.6 - - - - - -
Gas Water & Multiutilities (5) 6579.66 -1.11 5839.34 6653.27 6626.88 8364.51 5.66 1.60 11.02 69.15 7794.24 FTSE Emerging Small Cap 1109 837.15 0.5 -2.3 -0.1 1220.64
0.4 2.4 Fixed Line Telecommuniations 39 122.58 -0.5 -0.5 -9.2 263.01 -7.3 5.4 Order Book Turnover (m) 275.37 300.98 300.98 300.98 1563.48 113.10
Financials (295) 5418.58 0.33 4808.90 5400.69 5431.49 5138.65 3.48 1.97 14.56 92.53 5202.57 FTSE Emerging Europe 125 380.58 0.5 2.2 -2.3 611.62
-1.7 4.2 Mobile Telecommunications 53 174.87 -0.3 -0.3 -4.0 301.14 -3.3 3.7 Order Book Bargains 1147534.00 981110.00 981110.00 981110.00 1004438.00 1117883.00
Banks (11) 4474.57 0.39 3971.10 4457.34 4482.41 4326.43 3.91 1.21 21.06 83.31 3441.57 FTSE Latin America All Cap 241 923.67 -1.1 -6.4 -0.4 1458.49
0.9 2.8 Utilities 167 271.95 0.0 0.0 -1.5 543.64 -0.2 3.7 Order Book Shares Traded (m) 2076.00 1716.00 1716.00 1716.00 1928.00 1813.00
Nonlife Insurance (10) 3712.07 0.96 3294.40 3676.82 3720.67 3378.81 3.27 1.63 18.78 77.64 6778.32 FTSE Middle East and Africa All Cap 239 758.72 0.4 0.6 -3.3 1216.40
-1.8 3.2 Electricity 110 297.31 -0.1 -0.1 -1.7 587.27 -0.4 3.6 Total Equity Turnover (£m) 9795.04 6424.11 6424.11 6424.11 10658.98 7460.59
Life Insurance/Assurance (9) 9361.38 0.83 8308.07 9284.50 9382.08 8559.57 3.63 1.47 18.75 227.67 9562.35 FTSE Global wi UNITED KINGDOM All Cap In 322 372.87 0.2 1.1 0.8 646.59
2.6 3.7 Gas Water & Multiutilities 57 287.65 0.0 0.0 -1.1 591.00 0.2 4.0 Total Mkt Bargains 1278949.00 1110788.00 1110788.00 1110788.00 1134134.00 1209739.00
Real Estate Investment & Services (19) 2851.03 -0.65 2530.25 2869.76 2869.76 2770.37 2.56 2.75 14.19 24.53 7786.54 FTSE Global wi USA All Cap 1868 673.84 0.0 2.8 2.3 904.57
3.0 1.8 Financials 713 259.01 0.0 0.0 0.2 433.70 1.5 2.9 Total Shares Traded (m) 5171.00 4547.00 4547.00 4547.00 4647.00 3848.00
Real Estate Investment Trusts (34) 2847.20 -0.73 2526.85 2868.00 2888.49 2809.61 3.80 2.17 12.12 46.62 3687.67 FTSE Europe All Cap 1478 458.74 0.2 0.6 0.5 762.79
2.3 3.2 Banks 245 230.65 0.1 0.1 -0.5 416.12 0.8 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (31) 9726.03 0.64 8631.69 9663.71 9716.39 8998.81 3.23 2.07 14.92 126.00 11486.21 FTSE Eurozone All Cap 670 458.65 0.2 0.3 2.2 765.03
3.7 2.9 Nonlife Insurance 74 271.40 -0.3 -0.3 -0.3 402.81 1.2 2.3 (c) Market closed.
Equity Investment Instruments (181) 10179.16 -0.08 9033.84 10187.34 10184.25 9593.62 2.44 5.49 7.46 91.89 5690.39 FTSE RAFI All World 3000 3194 7124.08 0.3 1.6 0.6 9642.24
1.8 2.9 Life Insurance 53 247.52 0.4 0.4 -1.9 405.07 -0.8 2.9
Non Financials (338) 4964.84 0.04 4406.22 4962.74 4960.81 4852.50 3.62 1.99 13.89 75.21 7606.32 FTSE RAFI US 1000 1047 11523.69 0.2 2.1 -0.1 15410.85
0.7 2.4 Financial Services 153 324.82 -0.1 -0.1 5.7 454.45 6.5 1.8
Technology (15) 1873.14 -0.42 1662.38 1881.13 1893.19 2026.59 2.73 0.96 38.10 25.06 2461.14 FTSE EDHEC-Risk Efficient All-World 3179 410.35 0.1 1.4 1.2 581.65
2.0 2.2 Technology 195 291.65 0.1 0.1 8.7 361.41 9.2 1.3 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (12) 2089.87 -0.47 1854.72 2099.79 2117.77 2319.03 2.79 0.88 40.82 29.31 2902.62 FTSE EDHEC-Risk Efficient Developed Europe 563 346.30 0.2 1.3 2.3 540.29
3.8 2.7 Software & Computer Services 96 500.87 -0.1 -0.1 8.2 588.29 8.4 0.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (3) 2536.99 0.15 2251.54 2533.30 2485.39 1856.83 1.97 2.37 21.38 14.60 3013.17 Oil & Gas 148 422.05 0.8 7.1 7.9 701.29
9.2 3.3 Technology Hardware & Equipment 99 220.69 0.4 0.4 9.4 286.21 10.1 1.9 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 9 105.87 0.6 0.6 9.9 144.93 10.9 1.6 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment & Services 109 378.48 1.5 1.5 2.8 643.96 3.8 2.4 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7692.79 7715.47 7720.54 7728.10 7731.84 7742.15 7724.83 7712.27 7737.23 7751.79 7688.26 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 250 20806.30 20831.52 20855.04 20837.66 20842.16 20861.06 20809.79 20785.91 20781.62 20861.62 20767.24 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 6002.14 6010.77 6011.16 6012.24 6010.29 6012.36 6008.50 6001.38 6003.42 6014.06 5999.49
FTSE All-Share 4229.26 4240.32 4243.35 4246.13 4247.87 4253.09 4243.67 4237.01 4248.07 4257.07 4227.12 WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE 100 Day's high:12:22:00 Day's Low07:04:00 FTSE 100 2010/11 High: 7778.64(12/01/2018) Low: 6888.69(26/03/2018) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE All-Share Day's high:12:22:00 Day's Low07:04:00 FTSE 100 2010/11 High: 4268.89(12/01/2018) Low: 3810.81(26/03/2018) Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Alexander Mining Pre 0.000 0.000 0.430L 0.583L 0.030L 0.080L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Braemar Shipping Services Pre 133.409 135.935 1.514L 0.211 9.700L 1.660L 10.00000 5.00000 Jul 27 15.000 14.000 05/09 100.00 AIM UEX Urban Exposure PLC 105.00 -0.90 107.00 104.10 17325.0
There are currently no rights offers by any companies listed on the LSE. BTG Pre 620.500 570.500 70.600L 31.600 3.900 8.700 0.00000 0.00000 - 0.000 0.000 05/08 95.00 AIM RBGP Rosenblatt Group PLC 115.00 0.00 116.76 95.00 9210.6
Condor Gold 1st 0.000 0.000 0.603L 0.953L 0.970L 1.860L 0.00000 0.00000 - 0.000 0.000 04/30 100.00 AIM KRM KRM22 PLC 148.50 -5.50 159.88 100.00 1829.6
CYBG Int 507.000 496.000 95.000L 46.000 10.200L 1.700 0.00000 0.00000 - 1.000 0.000 04/16 2.99 AIM CAS Crusader Resources Ltd 2.55 -0.43 3.20 2.50 1174.5
easyJet Int 2183.000 1827.000 68.000L 236.000L 13.700L 48.900L 0.00000 0.00000 - 40.900 53.800 04/04 170.00 AIM SBIZ SimplyBiz Group (The) PLC 181.50 7.37 185.00 155.00 13879.4
Edge Performance VCT Pre 0.000 0.000 1.164 4.327L 0.180 0.750 0.00000 0.00000 - 0.000 0.000
EI Group Int 330.000 310.000 45.000 13.000 7.900 2.100 0.00000 0.00000 - 0.000 0.000
Elegant Hotels Group Int 38.785 35.781 10.763 11.513 0.099 0.103 1.86400 4.36700 Jul 6 4.200 8.900
Gear4music (Holdings) Pre 80.100 56.128 1.500 2.636 6.700 11.500 0.00000 0.00000 - 0.000 0.000
Georgia Healthcare Group 1st 206.996 185.824 16.014 13.054 0.080 0.070 0.00000 0.00000 - 0.000 0.000
Income & Growth VCT (The) Int 0.978 1.439 1.040 1.990 0.00000 3.00000 - 0.000 3.000
ITE Group Int 75.362 69.588 1.284 3.130 0.700L 0.600 0.00000 1.50000 - 2.500 4.500
Land Securities Group Pre 852.000 787.000 251.000L 112.000 32.900L 15.253 0.00000 12.48000 - 9.850 22.027

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 16 May 2018 FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

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52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence Hargr Lans 1921.5 46.50 1935 1251.36 1.51 40.71 1970.0 TaylorWm♦ 202.30 7.20 211.90 173.00 2.27 11.97 28574.5 Mining SEGRO 650.20 0.60 656.80 477.30 2.53 6.64 2423.9 MngCnslt 3.15 - 8.99 2.70 - -0.39 10.1
Avon Rubber 1425 -5.00 1450 885.00 0.86 19.36 54.3 Indvardn SKr 192.70 0.55 220.80 182.05 2.73 12.52 668.5 TedBaker 2648 -40.00 3244 2286 2.02 23.86 68.0 AngloAmer 1802.6 -38.20 1870 950.10 1.96 9.95 9769.4 Shaftbry 990.00 -18.00 1055 920.00 1.56 9.18 569.3 MearsGp 328.00 4.00 515.00 316.00 3.57 15.77 33.5
BAE Sys♦ 637.40 6.20 682.34 534.00 3.37 23.87 8805.9 ICG 1158 15.00 1204 787.00 2.18 15.54 528.4 AngloPacif 157.50 -5.00 168.00 103.50 4.76 26.79 248.1 Town Ctr 287.00 -1.00 318.75 266.00 4.01 9.20 3.3 MenziesJ 677.00 7.00 750.00 619.00 2.82 44.83 73.0
Investec 564.20 -10.00 649.40 451.20 4.08 11.68 1584.4
Industrial Engineering TritaxBBOX 149.20 -0.40 151.40 139.36 4.26 7.64 2184.8 MITIE 190.30 -3.90 313.30 146.80 2.10 -11.33 1371.8
Chemring 205.00 -0.50 219.00 162.00 1.12 186.36 1715.5 AnGoldA R 108.44 -1.86 161.89 105.18 1.12 -18.77 1531.4
Jupiter 463.10 6.80 638.80 438.40 3.67 13.74 2888.7 Bodycote♦■ 920.00 9.00 1043 728.50 1.75 18.04 966.7 Wkspace 1103 -18.00 1139 840.50 1.91 8.87 185.1 PageGroup 545.50 3.50 566.00 418.20 2.20 21.48 896.6
Meggitt 486.10 2.70 530.00 415.50 3.16 10.97 2315.9 Antofagasta♦ 1051.5 3.50 1071.5 748.50 1.78 18.69 3023.9
Liontrust 572.00 4.00 620.00 430.00 2.62 35.40 39.2 Castings 434.50 0.50 490.00 408.00 3.22 15.63 5.0
RollsRoyceX 840.80 15.20 994.50 800.20 0.55 3.68 4894.0
Fenner♦ 609.00 1.00 624.50 279.50 0.69 29.71 321.1
Barrick C$ 17.03 -0.22 23.66 14.26 0.91 10.77 1097.6 Real Estate Inv & Services Renewi 69.40 -0.40 109.00 67.90 4.39 -8.06 1113.9
Senior♦ 310.40 2.00 324.40 217.60 2.15 21.71 930.2 LSE Gp♦ 4475 58.00 4487 3369 1.02 29.81 688.8 BHP Billiton 1712.2 -8.80 1731 1121.75 3.59 26.29 13134.6 Cap&Count♦ 286.20 -4.70 326.10 251.90 0.52 -357.754960.6 Rentokil♦ 318.20 -1.30 338.80 254.70 1.11 8.62 11276.3
Man♦ 192.00 1.90 219.20 148.60 3.69 16.98 5539.7 Goodwin 1960 10.00 2128 1510 2.16 22.19 5.3 Ricardo 1000.00 12.00 1030 576.50 1.93 21.98 8.2
UltraElc 1488 -25.00 2180 1138 3.24 22.51 297.7 BisichMg 94.50 - 96.95 68.00 4.23 18.35 0.8 CLS 245.50 -2.00 255.00 179.18 2.46 6.34 21.7
NB GFRIF♦ 92.90 -0.20 98.35 91.00 3.51 28.56 3003.6 Hill&Sm 1445 -15.00 1495 1130 1.89 21.34 128.5 RbrtWlts♦ 704.00 -2.00 742.00 380.50 1.27 18.10 48.4
EVRAZ 495.80 -6.40 520.00 169.80 4.44 13.97 3972.2 Daejan 6050 - 7005 5500 1.54 6.75 3.4
Automobiles & Parts NEX Group 1003 13.00 1018 556.00 3.84 54.51 6781.5 IMI♦ 1126 27.00 1453 1004 3.45 21.05 2395.9
Fresnillo♦ 1243 -43.50 1746 1150.5 1.87 20.94 1369.1 Grainger 314.80 -2.00 321.60 248.70 1.48 17.89 685.5 RPS♦ 267.50 -1.00 307.50 225.50 3.69 -35.57 222.7
FordMtr $X♦ 11.23 0.05 13.48 10.14 5.14 6.05 13080.3 Paragon 546.00 1.00 553.00 400.09 2.55 13.03 587.2 MelroseInd♦ 232.60 1.00 261.70 194.70 1.42 -193.83 26056.5
SIG 138.20 -0.20 184.90 123.50 2.23 -13.68 1126.8
GemDmnd 109.00 2.00 110.00 66.00 - 37.81 43.3 Harworth Grp♦ 112.50 -0.50 115.00 91.25 0.71 13.08 34.0
GKN 473.20 2.40 482.30 280.00 1.90 16.26 1988.1 Providnt 654.40 -11.00 2353.04 312.14 10.22 -9.86 775.7 Renold 23.00 0.20 63.75 22.00 - 5.11 169.5 St Ives 95.00 0.90 97.00 37.50 2.05 -2.44 122.8
GlencoreX 379.30 -5.90 416.90 274.44 1.36 12.83 41309.6 Helical 385.00 -8.00 395.00 285.00 2.23 59.23 52.8
RathbnBr 2506 -10.00 2842 2254 2.31 27.27 59.6 RHIM 5165 -45.00 5350 3200 - -129.30 52.4 Vp 909.00 - 940.00 785.00 2.42 13.95 0.4
Banks Harmony R 23.87 -0.16 32.29 19.00 4.00 45.63 1915.5 HK Land $♦ 7.15 -0.06 7.89 6.72 2.58 3.02 2761.9
Record 45.00 1.40 53.42 39.20 4.44 14.56 149.8 Rotork♦ 347.20 0.40 351.90 221.30 1.50 54.25 3228.3
ANZ A$X 27.74 0.11 30.80 26.11 8.70 12.46 6630.9 Lonmin 50.00 -2.15 115.00 47.00 - -0.19 4270.1 Lon&Assc 28.00 -1.00 31.00 16.71 - -21.05 7.1 Tech - Hardware
S&U 2735 -35.00 2790 1863.9 3.47 13.51 2.1 Severfd 77.60 0.20 88.00 58.23 2.96 12.60 272.2
BcoSant 479.80 -4.10 568.99 386.92 3.89 13.41 6238.6 Petra 79.10 2.00 140.20 58.50 - -5.53 1564.7 MacauPrp 195.00 -1.00 206.00 150.00 - 8.23 10.6
Schroder 3432 21.00 3784 3069 2.86 16.27 508.3 Tex 113.50 - 148.80 100.00 7.49 8.53 1.6 Laird 196.80 -0.90 205.00 111.80 0.57 12.46 2250.0
BnkGeorgia 3318 -14.00 3884 3193 2.27 11.28 79.8 Petropvlsk 6.98 0.03 9.00 6.25 - 9.45 1830.4 Mntview 10900 - 12500 10300 2.75 12.62 0.1
..N/V 2595 35.00 2720 2178 3.78 12.30 307.2 Trifast 246.00 - 277.00 191.37 1.42 21.15 200.4 SpirentCM 122.00 - 131.00 89.50 2.35 35.04 275.2
BankIre Grp € 7.46 0.02 8.25 6.18 - 11.95 309.1 PolymtIntl♦ 685.40 -27.00 1073.99 577.80 3.43 11.45 1866.0 Palace Cap 344.00 -2.00 397.00 208.00 5.38 8.51 19.1
Strd Life Aber♦ 367.60 -1.20 448.60 349.40 5.54 12.42 5730.3 Vitec♦ 1240 25.00 1320 899.82 2.23 53.22 8.4
BkNvaS C$X 80.52 0.04 85.50 73.31 3.84 11.91 717.5 Weir♦ 2287 29.00 2326 1697 1.92 31.29 999.3
RndgldRs♦ 5808 -100.00 8255 5540 1.23 26.91 797.9 RavenRuss 45.50 0.50 52.63 41.40 - 50.95 36.5 Tech - Software & Services
TP ICAP♦ 441.50 -0.40 560.60 428.50 1.27 28.48 1629.8 Rio TintoX 4229.5 -11.50 4255 2966.02 4.06 11.75 3557.0 RavenR CNV 119.50 - 125.01 113.00 - - 0.4 Computcnt 1346 60.00 1360 768.50 1.65 19.97 502.3
BarclaysX 211.60 -0.30 220.10 177.30 1.42 62.24 33125.1
WlkrCrip 36.00 -1.00 50.00 34.50 5.19 14.57 85.9 Industrial General Sirius Min 33.58 -0.24 35.50 21.00 - -18.45 15815.9 RavenR Prf 148.00 - 156.00 120.00 - 165.73 31.8 MicroFoc 1269 -9.00 2749 782.20 5.67 24.67 10639.1
CanImp C$X 116.40 0.20 124.37 103.84 4.40 10.92 470.9
HSBCX 738.60 5.60 798.60 650.60 5.09 20.82 28948.4 Food & Beverages Coats Group♦ 83.50 6.00 90.00 61.00 1.13 19.92 34064.9 Troy Res A$ 0.15 -0.01 0.16 0.07 - -0.81 1697.4 RavenR Wrt 21.00 1.00 28.25 19.00 - - 25.0 NCC Grp 210.40 1.00 239.25 140.00 2.21 -10.07 179.6
LlydsBkgX♦ 66.78 0.11 73.58 62.20 4.04 13.91 189268.1 JardnMt $X♦ 62.42 0.62 68.11 59.73 2.41 6.23 168.3 VedantaRs 782.60 1.20 981.80 558.50 5.28 -120.68 814.5 Safestre 533.00 -2.00 553.50 383.80 2.30 14.29 581.0 RM 221.00 -2.00 228.00 153.50 2.78 14.08 54.9
AngloEst 760.00 15.00 888.00 710.00 0.40 8.72 5.9
PermTSB € 1.72 -0.06 2.96 1.64 - 26.61 27.3 AscBrFdX Jard Str $X♦ 37.20 -0.09 46.48 35.30 0.80 5.24 197.1 Savills 938.50 -6.50 1046 837.00 1.57 16.32 342.8 Sage 662.40 -6.00 825.20 536.20 2.20 27.86 3569.1
2725 -10.00 3387 2386 1.50 20.64 753.1 Oil & Gas SchroderRE 61.00 0.30 66.00 57.80 4.07 8.59 297.4
RylBkC C$X♦ 101.17 0.18 108.52 90.13 3.51 13.35 585.8 Barr(AG)♦ 682.00 1.00 702.00 580.00 2.11 22.96 120.5 Macfrlne 95.25 3.00 96.70 58.00 2.10 18.25 494.6 SDL♦ 432.00 -2.00 674.50 333.00 1.44 25.71 3.7
BPX 577.20 6.70 580.30 4.80 4.91 36.72 71762.9 SiriusRE 65.00 1.00 68.60 51.60 3.96 7.79 2586.3
RBSX 293.30 0.30 304.20 239.60 - 46.56 26425.4 Britvic 750.00 -1.50 825.00 658.00 3.29 17.77 641.1 RPC 776.80 -0.20 1032 714.82 3.09 15.23 2343.2 TriadGp 60.00 -2.00 83.45 50.40 0.83 6.10 22.4
CairnEng 247.60 7.20 254.60 164.28 - 7.52 9520.1 Smart(J) 110.50 -0.50 113.00 105.00 2.81 13.38 30.0
STB♦ 1970 20.00 2454.69 1490 3.86 18.52 0.1 CarrsGroup♦ 142.00 0.50 154.00 118.00 2.82 14.06 6.4 Smith DS 543.80 3.80 565.00 415.70 2.80 26.79 4435.5
Smiths 1660 5.00 1692.5 1354 2.61 17.97 1098.0
ExxonMb $X♦ 81.59 -0.24 89.30 72.16 3.74 17.66 4532.7 StModwen 404.60 -3.80 429.40 326.37 1.50 15.15 340.3 Telecommunications
StandChX♦ 765.70 3.90 864.20 688.60 - 44.46 9374.1 Coca-Cola HBC 2599 28.00 2711 2176 1.50 25.24 1684.2 GeoPark $ 15.17 0.95 15.39 6.48 - -38.01 522.3
SmurfKap 3108 -14.00 3254 2053 2.30 19.92 483.5 U+I■ 228.50 -3.50 244.50 176.00 2.58 53.14 291.0 BTX 206.80 -5.00 318.01 206.55 6.99 12.84 50632.0
..7.375%Pf 127.75 4.00 143.25 120.00 5.77 - 44.8 Cranswk 3034 -6.00 3361 2703 1.45 23.11 53.6 GulfKeyst 188.80 6.60 191.80 86.25 - 0.24 3071.5
Vesuvius♦ 622.50 -6.00 646.50 514.50 2.71 46.46 420.8 UNITE Gp♦ 847.50 1.00 862.00 618.00 2.28 9.05 443.2 Inmarsat♦ 382.40 -13.60 865.00 334.30 10.67 12.93 5052.7
..8.25%Pf 138.25 1.00 158.90 134.00 5.97 - 8.3 Dairy Cr 540.00 -4.50 653.75 482.80 4.17 5.35 243.8 HellenPet € 7.75 -0.30 8.88 6.11 4.56 6.14 270.0 Urban&C 317.00 -2.00 325.00 237.00 0.95 10.32 176.7 KCOM Gp 100.20 -1.00 111.25 85.30 5.99 21.55 331.3
TntoDom C$X 75.45 0.37 76.65 61.50 3.17 13.97 1175.7 Devro 223.50 -3.00 247.00 185.20 3.94 24.03 199.5 Industrial Transportation Hunting 883.50 20.50 893.50 376.50 - -72.88 1140.2 TalkTalk 130.90 -3.10 220.00 88.60 7.86 -35.38 1794.8
VirginMoney♦ 342.70 -10.00 353.50 256.20 1.58 9.14 8192.1 DiageoX 2675 12.00 2735.5 2234 2.33 21.01 3992.5 ImpOil C$X 42.04 -0.23 42.52 33.43 1.54 70.64 367.0 Retailers
BBA Aviat♦ 327.60 -2.00 370.40 290.00 1.99 32.35 3088.4 TelePlus 1040 -14.00 1342 1014.03 4.62 26.87 82.8
Westpc A$X 30.01 -0.01 33.68 27.60 9.45 12.39 7711.8 Grncore 162.85 -2.15 257.10 120.00 3.36 85.71 7384.4 OphirEgy 62.90 -0.90 90.75 51.00 - -5.39 2019.1 AA♦ 134.20 1.20 255.70 69.92 6.93 8.13 1552.2
Braemar 272.50 17.50 322.00 236.00 5.14 -146.51 277.3 Vodafone GpX 198.38 -8.82 239.65 190.10 6.63 -72.16 181651.3
HiltonFd 912.00 14.00 920.00 670.50 1.92 27.80 39.2 PremOil 110.50 0.70 113.05 42.75 - -2.84 10863.4 AO World 147.60 -1.00 159.60 98.00 - -41.34 191.4
Basic Resource (Ex Mining) Clarkson 2500 -5.00 3475 1970 2.64 24.04 40.2
Tobacco
Kerry €♦ 89.05 -0.70 94.92 73.67 0.66 26.46 61.3 Eurotunnl € 11.83 -0.01 12.49 9.15 2.22 58.57 763.5 RylDShlAX 2691 30.00 2706 2017 5.20 23.34 8883.9 AshleyL 4.24 -0.41 14.00 3.80 11.81 24.91 366.9
Ferrexpo 232.90 -8.10 326.60 154.40 1.09 5.46 2954.5
Nestle SFrX 76.98 -0.32 86.40 73.00 3.06 32.35 4253.3 Fisher J 1732 -22.00 1790 1340 1.56 21.79 18.2 ..B 2772.5 33.50 2787.5 2038.9 5.05 24.04 6722.4 Caffyns 425.00 - 529.00 371.00 5.29 10.71 0.6 BrAmTobX 3826.5 15.50 5643.6 3553 5.70 2.09 4590.2
Mondi♦■ 1998 18.50 2145 1684 2.52 16.25 1712.7
PremFds 38.00 0.25 45.15 35.80 - 5.14 4443.8 OceanWil♦ 1125 - 1220 1005 4.28 7.76 2.4 Schlmbrg $X 71.46 -0.14 80.35 61.02 2.79 -66.32 1099.8 Dairy Fm $♦ 8.23 -0.19 8.65 7.35 2.53 27.72 2830.3 Imperial BrX 2745.5 -19.50 3728.13 2298 5.82 18.65 3193.9
Chemicals PureCircle 341.50 -18.00 517.00 310.00 - 208.10 75.0 RoyalMail 609.00 -4.80 632.60 367.80 3.78 17.06 7963.9 SEPLAT 143.00 -5.00 155.50 75.25 - -14.76 21.0 Debenhams 23.12 -0.84 51.44 20.00 14.81 -25.69 6441.1 Travel & Leisure
Carclo 89.00 -0.60 180.25 62.40 - 8.56 127.4 REA 310.00 -5.00 360.00 282.00 - -6.57 5.0 Soco Int 110.00 -7.60 150.00 87.60 4.30 -3.12 286.6 Dignity 1249 4.00 2777 735.50 1.95 10.80 456.8
StckSpirit♦ 259.50 -3.00 320.00 155.50 2.68 48.72 250.2 Insurance 888 Hldg 309.80 -2.20 323.20 238.00 2.17 123.28 3513.3
Croda♦ 4571 -21.00 4690 3612 1.67 25.54 411.3 TrnCan C$X 55.57 -0.51 65.18 50.28 4.62 15.79 822.5 DixonsCar 223.40 -1.40 349.60 145.72 - 10.54 5097.9
Tate&Lyl 597.00 -4.80 796.50 522.60 4.69 11.20 1711.8 Admiral 1947.5 17.50 2184 1766 2.72 16.65 739.3 AirPrtnr 100.00 -1.50 153.00 65.00 5.21 15.38 120.8
Elemntis♦ 289.40 1.40 321.80 258.10 2.20 16.31 641.6 Dunelm 609.00 11.00 760.00 503.00 4.27 16.68 510.4
Johnsn Mtthey 3444 1.00 3511 2677.68 2.18 17.57 533.4 TongtHu R 88.30 -1.50 124.47 83.40 3.19 10.14 116.5 AvivaX♦ 544.20 6.20 550.00 482.20 3.95 36.04 9153.3 Pharmaceuticals & Biotech Findel 250.50 - 270.00 150.00 - -4.26 4.8
Carnival 4912 37.00 5435 4427 1.85 18.54 862.4
Unilever 4108.5 -29.00 4557.5 3678.5 3.03 21.53 3022.4 Beazley 607.00 3.50 621.50 440.70 1.65 33.65 1208.8 AstraZenecaX 5292 -3.00 5520 4260 3.85 30.21 2419.8 Cineworld 272.20 1.80 673.00 96.27 3.22 37.76 5971.9
Victrex 2662 20.00 2772 1826 1.78 22.91 524.4 Halfords 383.00 -0.80 387.40 305.40 4.57 14.03 433.6
..NV €♦ 47.20 -0.40 52.29 42.10 2.22 21.74 7.4 Chesnar♦ 401.50 6.00 424.50 334.75 4.90 7.70 62.5 BTG 590.50 -72.00 784.00 540.00 - 31.08 3477.8 CompassX 1559 33.50 1765.92 1396.5 2.15 21.87 4155.0
Inchcape 751.00 0.50 885.00 660.50 3.29 11.75 662.5
Construction & Materials Direct Line♦■ 370.30 7.20 411.30 316.30 4.46 11.76 5646.8 CathayIn 7.88 -0.13 14.00 6.58 - -5.82 11.1 JDSportsF 390.00 -1.40 461.50 300.08 0.40 19.02 1343.6
Dalata Hotel 591.00 2.50 601.49 410.00 - 18.04 16.0
Alumasc 127.00 -13.00 189.90 118.40 5.63 7.60 178.6 Health Care Equip & Services Eccles prf 158.50 0.50 160.00 110.00 5.44 - 84.0 Dechra 2764 16.00 2840 1636 0.78 60.14 267.2 easyJet 1741 56.00 1768 1135.25 3.09 22.67 5028.0
Bioquell 310.00 - 379.00 159.00 - 28.70 9.0 Kingfisher♦ 290.00 -1.40 369.80 277.30 3.61 13.18 7334.5 EI Group 130.80 5.20 153.00 114.20 - 11.78 2458.3
Boot(H)♦ 298.00 2.50 350.00 256.50 2.45 9.37 197.3 Hansard 77.30 0.80 94.00 71.42 11.51 15.78 61.8 Genus 2538 28.00 2648 1652 0.93 23.57 476.2 Marks&Sp 288.00 -1.60 397.80 262.10 6.49 25.26 7716.5
ClarkeT♦ 80.00 -0.10 93.67 68.20 4.13 6.07 30.8 ConstMed 1210 24.00 1230 1008 1.68 30.33 11.9 Hiscox♦ 1498 9.00 1537 1180 1.90 166.44 403.7 GlaxoSmhX♦ 1470 -6.40 1724.5 1236.4 5.44 70.67 8676.5 FirstGrp 113.40 3.80 154.50 76.15 - 13.03 6654.1
ConvaTec♦ 229.50 -2.40 349.10 181.98 0.44 38.81 3567.1 Morrison (Wm) 252.40 1.00 254.80 203.30 2.15 16.74 10915.2 Fuller A 945.00 5.00 1124 896.00 1.99 15.31 2.5
CRH 2676 2.00 2901 2297.7 2.17 14.17 1904.8 JardineL 1286 2.00 1468 1119 2.55 23.51 188.5 HikmaPhm♦ 1348.5 34.00 1770 814.20 1.81 -5.19 494.2 MossBros♦ 47.05 -0.60 120.00 39.00 12.77 8.86 79.8
GalfrdT 947.00 -4.00 1427 772.50 9.12 19.71 515.4 GNStre kr 245.10 -1.90 248.80 182.20 0.47 30.25 437.2 Lancashire 609.50 2.00 773.50 542.50 1.83 -22.90 432.5 Oxfd Bio 14.98 0.62 15.50 4.75 - -41.61 24087.6 Go-Ahead 1863 14.00 2004 1310 5.48 8.65 95.8
Mediclinic 684.80 -19.80 890.18 495.40 1.15 73.63 1616.0 Next 5628 26.00 5708 3565 2.81 13.54 824.8 GreeneKg 558.40 4.80 760.00 454.00 5.95 9.92 1147.5
KierGp♦ 1061 -11.00 1309 904.00 6.36 342.26 342.5 Leg&Gen♦ 282.70 4.90 283.50 244.30 5.18 9.31 21266.3 RichterG $ 20.60 -0.20 27.00 20.00 2.00 111.13 0.0 Ocado 545.20 -11.40 603.20 235.80 - 3407.50 1611.5
Kingsp € 39.82 -0.08 40.24 27.72 0.88 25.06 34.9 NMC Health 3540 -52.00 3718 2060 0.30 57.55 635.7 Old Mut 252.00 -4.20 263.10 185.50 2.75 31.90 16943.3 ShireX 4182.5 45.50 5021 2940.5 0.54 12.14 6552.7 IntCon Htels Gp 4714 -13.00 4944 3656 - 20.89 635.2
Smith & Nephew 1304 -2.00 1442 1173 1.73 20.11 9080.4 Photo-Me 162.00 2.00 194.00 153.00 4.34 16.48 543.3 Intl Cons Air 685.80 -6.00 773.19 569.00 3.24 8.34 9396.8
LowBonr 54.00 -1.30 90.06 52.00 5.65 -9.71 89.0 PhoenixGrp 790.00 -2.50 820.00 719.00 6.20 -112.86 1011.6 VecturGp 85.45 0.80 131.90 68.00 - -6.78 3237.4 Saga 134.10 1.30 213.90 108.00 6.34 9.86 3060.2
Marshlls 428.00 2.40 486.60 360.20 2.15 20.03 309.3 UDGHlthC 925.00 -4.50 963.00 739.50 1.02 43.05 1350.5 PrudntlX♦ 1925 19.00 1992.5 1692 2.34 20.70 4922.8 IrishCtl € 5.71 - 6.00 5.04 2.08 12.91 2.6
Real Estate Sainsbury (J) 304.00 -0.60 327.10 223.60 3.36 31.67 11939.0 Jackpotjoy 823.00 -8.00 885.00 558.50 - -8.95 732.7
MorgSdl♦ 1452 58.00 1520 1078 2.62 12.88 154.9 House, Leisure & Pers Goods RSA Ins♦ 655.40 6.60 672.50 591.40 2.69 25.11 4240.9 TescoX 246.90 1.10 248.40 165.35 - 44.09 39248.6
Norcros 193.50 1.25 202.00 134.06 3.72 15.60 24.4 SagicFin 82.50 - 110.00 70.00 4.52 5.98 6.9 REITs MandarO $♦ 2.59 0.02 2.86 1.40 1.50 59.67 575.1
BarrttDev♦ 568.20 15.00 705.50 513.00 4.29 9.18 6517.0 Marstons 112.00 1.60 146.81 95.90 6.61 7.94 4295.4
Tyman♦ 331.50 -2.50 387.00 280.00 3.32 18.95 721.3
Bellway 3433 92.00 3805 2718 3.55 8.66 687.5 StJmsPl♦ 1181.5 7.00 1279.5 1051 3.05 43.12 1800.8 Assura 59.70 0.30 67.02 56.60 4.02 7.96 1969.2 Support Services
BigYellw 956.00 -6.50 989.00 721.86 2.89 12.56 169.7 Aggreko♦ 725.20 - 994.50 638.60 3.74 17.47 1110.1 Merlin Ents♦ 375.30 2.10 537.50 317.10 1.95 18.31 2759.1
Electronic & Electrical Equip Berkeley 4200 63.00 4270 3030.99 3.26 7.64 1001.1 Media Natl Exp♦ 406.20 4.80 414.00 336.28 3.12 16.65 838.7
BritLand 684.20 -6.20 697.60 589.00 4.30 11.76 5512.2 AshtdGp 2252 13.00 2261 1476 1.25 11.38 1790.4
Dialight 514.00 -36.00 1099 480.00 - 107.08 102.6 BovisHme♦ 1298 34.00 1301 872.50 3.47 19.14 617.3 4imprint 1960 10.00 2080 1537 2.06 25.78 4.6 Paddy Pwr Btfr♦ 7760 -215.00 8965 6572.5 2.29 30.38 539.1
Cap&Reg♦ 56.10 2.10 62.00 50.00 6.24 17.93 2687.4 Babcock 744.60 -10.40 1030 604.00 3.78 11.65 2098.5
Discoverie PLC 435.00 -1.00 450.00 258.00 1.95 44.39 5.7 Burberry Gp 1803.5 -3.00 2024 1481.5 2.16 25.73 5535.2 Centaur♦ 50.30 0.80 57.00 42.00 5.96 -62.88 2.4 PPHE Htl♦ 1165 - 1200 795.00 1.89 20.44 18.1
Civitas SH 104.50 -0.50 113.50 95.60 - - 1081.3 Bunzl 2228 -3.00 2472 1918.5 1.93 23.83 1107.7
Halma 1296 4.00 1341 1064 1.06 35.28 1026.0 Cairn Homes € 1.84 -0.01 2.00 1.41 - 303.41 3715.3 DlyMailA 730.00 1.00 777.50 500.00 3.04 -14.81 2066.0 Restaurt 307.60 -9.20 381.70 229.20 5.66 18.80 795.0
Countrywd 114.40 0.20 182.75 67.70 - -1.28 279.0 Capita 130.10 4.25 720.50 120.00 24.37 166.79 15561.7
Morgan Ad♦ 337.20 -5.20 366.80 277.20 3.26 8.99 637.4 CtrySide 384.00 9.20 387.00 270.50 1.77 14.88 2915.0 HaynesPb 229.00 -7.00 244.40 160.63 3.28 20.27 5.0 Stagech 153.50 -0.90 217.60 125.00 7.75 23.98 996.0
DrwntLdn♦■ 3070 -27.00 3241 2574 1.71 32.11 426.8 Comnsis♦ 66.00 -1.00 73.00 46.00 3.79 11.76 665.1
OxfordIn 954.00 13.00 1174 676.00 1.36 -37.12 17.1 CrestNic 493.80 4.40 648.50 429.80 6.01 7.59 1300.4 Informa♦ 757.00 0.40 773.00 638.00 2.60 20.08 4833.7 ThomasCook 140.50 1.30 141.90 87.75 0.36 175.63 7070.6
GREAT PORTLAND 687.00 -5.60 832.15 660.00 1.74 -34.14 1443.6 DCC 7230 10.00 7760 6445 1.55 31.93 394.8
Renishaw 5345 -20.00 5820 3362 0.97 28.30 81.7 GamesWk 2495 35.00 2850 876.38 4.41 15.85 225.7 ITE Grp 137.40 -8.40 197.00 136.20 3.28 -44.32 122.9 TUI 1782 16.50 1783.5 913.76 3.14 14.44 1417.8
Green Reit € 1.54 -0.03 1.64 1.35 3.27 7.64 135.0 DeLaRue 520.00 -5.00 711.50 446.00 4.81 10.74 127.5
Spectris 2789 7.00 2849 2220.5 1.90 14.22 336.2 Gleeson 738.00 -2.00 810.00 572.00 3.25 14.20 8.5 ITV♦ 165.65 -2.45 208.25 141.00 4.42 16.24 14648.5 Whitbrd 4180 -27.00 4353 3499.9 2.29 16.26 917.8
Hammersn 555.80 -3.20 614.50 430.40 4.43 11.37 4123.7 Diploma 1239 6.00 1270 1003.2 1.68 29.50 229.5
TT Elect♦ 235.00 3.00 245.00 173.25 2.40 24.74 111.2 Headlam 476.00 11.50 645.00 408.50 4.92 12.24 230.2 Pearson 908.40 -1.20 926.80 563.00 4.29 18.20 5142.8 Willim H♦ 314.00 0.90 345.00 239.10 4.03 -32.37 22386.1
Hansteen♦ 104.40 0.10 147.90 95.85 5.65 8.56 910.4 Elctrcmp 618.00 -0.60 713.32 519.50 1.99 25.75 921.3
XP Power 3600 90.00 3750 2376 2.08 24.66 2.1 McBride 128.20 -1.60 235.00 128.00 3.35 -85.47 113.7 Quarto 117.00 - 255.50 113.00 6.43 -1.64 3.2 HIBERNIA € 1.52 -0.04 1.57 1.23 1.45 6.68 8465.2 Essentra 461.80 -1.00 588.50 405.20 4.48 307.87 568.1 Utilities
McCarthy&S♦ 136.10 1.90 187.61 124.00 3.97 11.34 1529.9 RELX NV €♦ 17.92 0.03 19.65 15.86 2.36 19.32 2222.4
Financial General INTU♦ 195.35 -5.35 280.70 188.90 7.17 13.02 3459.4 Experian 1711.5 -3.50 1768 1428 1.81 27.77 4962.6
Persimn 2817 51.00 2901 2214 4.79 11.59 1477.5 RELX PLCX♦ 1586.5 5.50 1784 1399 2.36 19.47 4058.4 Centrica♦ 148.40 -0.75 213.00 123.10 8.09 24.73 34241.0
3i 984.40 11.40 986.20 823.00 2.69 7.87 2100.6 LandSecs 950.00 -18.70 1209.6 900.20 4.43 41.21 5052.8 Ferguson 5672 22.00 5722 4427 1.77 16.88 1537.5
Philips €♦ 35.32 0.09 36.22 29.25 2.29 40.66 2016.3 SkyX 1369.5 12.50 1402 893.42 - 28.95 3491.8 Drax 346.00 7.80 368.70 218.00 1.53 -9.35 1588.3
BrewDlph 380.80 0.80 399.40 320.20 3.52 23.80 539.9 LondonMtrc 193.10 -1.50 197.40 162.30 3.91 8.15 1048.5 G4S♦ 261.90 -1.00 342.60 233.80 3.59 16.79 5522.9
PZCusns 245.00 -7.80 367.80 199.70 3.38 15.52 522.1 STV Grp♦ 342.50 7.50 392.00 295.40 4.67 11.57 0.1 Natl GridX 837.00 -13.30 1174.36 733.00 5.45 16.84 11382.2
CtyLonInv 435.50 - 459.00 375.00 5.74 11.11 10.0 McKaySec 263.00 -5.00 289.00 192.25 3.42 6.55 0.0 Hays 183.70 -0.50 206.20 161.10 1.75 17.71 2858.4
ReckittBX♦ 5800 25.00 8110.43 5255 2.79 12.22 2049.7 ThmReut C$X 49.15 - 62.12 46.69 3.61 19.71 791.9 Pennon 709.00 -1.60 947.23 577.40 5.07 16.22 1490.7
CloseBrs 1563 -3.00 1643 1315 3.84 11.90 217.3 MucklGp 568.00 2.00 568.00 471.00 3.89 7.14 23.7 Homesve 758.00 1.00 872.00 682.50 2.02 32.53 195.3
Redrow 647.00 4.00 673.50 536.00 2.63 8.24 871.2 WPPX 1277.5 -20.00 1762 1074 4.43 9.41 5371.9 Severn Trent 1964.5 -6.50 2575 1664 4.15 15.89 1371.0
DBAG € 35.90 -0.15 52.30 35.60 3.38 6.10 23.9 PrimyHth♦ 114.20 - 116.70 103.95 4.60 7.77 793.7 HowdenJny 508.00 0.80 524.60 398.30 2.17 17.05 2681.8
Superdry Plc 1153 -17.00 2102 1152 2.43 14.63 927.2 SSE 1399.5 -12.50 1554 1176.5 6.52 10.43 4440.4
RDI REIT 36.60 -0.35 45.00 31.25 7.86 10.17 1434.4 Intertek 5092 36.00 5470 4125 1.31 28.88 310.6 UtdUtils 758.00 -5.60 1078 648.60 5.13 12.09 6220.5

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence BP Marsh 269.00 6.00 280.00 201.10 1.40 4.92 16.3 Mulberry 731.00 3.00 1149 590.00 0.68 76.15 1.2 Oil & Gas PnthrSec 385.00 - 390.00 295.00 3.90 7.04 0.7 Tech - Hardware
Cohort 364.00 - 460.00 310.00 1.95 24.46 3.9 Gresham House 420.00 -1.00 428.75 314.00 - -25.10 4.2 Portmern♦ 1125 - 1160 815.00 2.90 17.36 1.7 AmeriRes 15.64 -1.04 27.00 13.14 - 20.55 10375.4 SIR 391.00 -1.00 392.00 334.00 3.48 6.70 107.8 AminoTech 207.00 - 220.90 175.00 2.99 13.65 84.4
Leeds 28.50 - 41.70 27.20 - 11.40 2.0 TelfordHms 467.00 -4.50 474.50 361.75 3.36 12.94 268.4 BorSthnPet 4.80 -0.32 5.76 1.49 - -25.95 3123.5 SumGermny € 1.17 - 1.29 1.05 2.60 4.06 3.7 IQE 129.20 -0.60 181.50 65.00 - 56.67 5311.9
Banks MattioliWds 802.50 - 872.00 701.21 1.76 26.66 5.1 WalkerGb 111.50 1.00 245.39 104.00 3.24 18.16 33.9 ClontarfEn 0.36 -0.01 0.90 0.28 - -8.88 2102.6
Caribbean Inv 17.50 - 30.00 10.00 - 2.13 1.2 Miton 52.60 -0.30 55.00 34.75 1.90 17.19 273.8
Retailers Tech - Software & Services
Industrial Engineering Egdon Res 8.60 -0.15 9.93 5.42 - -12.29 230.4
Numis 440.00 15.00 445.00 230.25 2.73 16.99 588.9 ASOS 6240 -110.00 7770 5403 - 78.49 431.0 Eckoh 41.75 -0.75 55.00 36.80 1.15 34.79 247.7
Basic Resource (Ex Mining) PetrelRes 2.80 -0.10 4.15 1.50 - -20.00 77.2
Park Grp 79.50 1.75 90.00 74.00 3.65 16.13 132.1 600 Grp 15.50 - 17.44 11.90 - 5.85 5.6 Elecosoft♦ 72.50 3.50 73.00 38.90 0.62 29.32 69.9
CropperJ 1435 - 1975 1350 0.82 25.76 0.8 MS Intl 187.50 1.50 225.00 153.00 4.27 13.79 3.4
Phoenix Global 21.20 1.20 71.75 18.90 - -10.88 67.7 Support Services
PolarCap 580.00 4.00 590.00 386.56 4.31 28.66 147.6 Rockhop 41.40 -1.10 44.95 17.75 - -19.91 7135.6 Ingenta 115.50 - 215.00 110.00 0.87 25.44 0.0
Pres Tech 183.50 1.00 185.00 106.08 - -23.23 4.4 Alpha FX♦ 509.00 - 595.50 343.30 0.29 36.62 1604.0
Chemicals Share♦ 26.50 -0.50 29.00 22.00 0.94 64.79 16.8 Sound Energy 37.42 -0.58 82.00 36.60 - -24.30 2501.7 Iomart 403.00 1.00 420.00 290.25 1.49 34.77 92.6
Begbies 69.50 - 77.00 47.00 3.17 - 7.1
Scapa 415.40 -10.40 522.39 397.00 0.48 29.46 422.4 ShoreCap 285.00 5.00 305.00 200.00 3.51 22.27 15.0 Media UnJackOil 0.11 - 0.19 0.08 - -3.67 94585.9 Oxford Metrics 77.50 -0.50 83.00 49.31 1.29 31.12 15.7
Christie 130.50 -1.50 138.98 80.00 1.92 11.18 2.7
STM Group 60.50 - 63.75 32.05 2.64 9.50 37.6 RhythmOne 222.00 - 489.38 157.00 - -12.73 135.7
Cello Hlth♦ 121.50 -0.50 138.40 106.67 2.84 30.15 455.3 Empres♦ 80.00 - 169.95 75.00 1.44 10.13 11.9
Construction & Materials Pharmaceuticals & Biotech SciSys 168.50 - 172.00 92.00 1.20 14.91 101.6
Food & Beverages M&Csaatc 403.00 -1.00 430.00 290.00 2.06 -177.53 34.7 Gattaca 136.75 0.50 339.00 133.93 16.82 -4.70 74.3
Abbey 1345 - 1360 1170 1.04 6.15 0.0 Abcam 1247 -9.00 1325 940.50 0.82 46.63 237.9 WANdisco 1010 -5.00 1030 416.50 - -37.95 65.9
Camellia 12450 -150.00 13700 10000 1.06 46.46 0.1 MissionMk 48.50 - 52.00 37.00 3.20 9.42 23.0 HarvyNah 103.75 0.50 107.00 71.55 3.94 10.82 30.3
AccsysTch 79.50 -0.80 82.25 72.00 - -12.89 5.0 AllcePharm 81.60 1.00 83.00 47.00 1.53 13.53 8644.3
Aukett 2.75 0.50 3.25 1.00 - -13.75 670.6 FinsbryFd 128.00 -0.50 132.00 98.75 2.34 160.00 33.7 YouGov 405.00 2.50 420.00 245.01 0.49 82.65 28.2
e-Thera 7.25 - 13.25 6.00 - -3.63 11.1
Impellam 552.50 - 795.00 490.00 3.71 9.04 4.3 Travel & Leisure
Nichols 1545 -5.00 1961 1386 1.97 24.60 11.4 JhnsnSrv 140.00 - 151.75 120.00 1.86 20.29 595.4 Celtic 131.00 - 134.00 93.00 - 28.73 0.2
Mining HtchChMd 4895 -75.00 5920 2930 - -153.99 11.8
Electronic & Electrical Equip Mereo Bio 325.00 - 359.96 285.00 - -5.80 1.0
LonSec 2100 - 2300 1925 3.81 18.37 0.1 ..6%CvPf 120.50 - 142.00 80.55 - - 2.5
Health Care Equip & Services AMC 5.52 0.27 11.63 4.36 - -14.34 3831.3 NewmkSec 0.85 - 1.58 0.65 - -0.82 98.8
CeresPow 12.80 0.10
16.00 8.63 - -14.55 146.5 Reneuron 61.00 - 220.00 1.95 - -1.02 8.2 ..Cv Pf 252.00 - 275.00 174.20 - - 1.6
Advnc Med 321.50 -8.50 351.00 266.25 0.29 39.30 332.1 BotswanaD 1.15 - 2.65 0.90 - -12.78 1015.8 NWF 202.50 1.00 212.80 85.00 2.96 16.46 46.8
ElektronT 33.50 2.00
34.00 6.98 - 239.29 3410.1 Sareum 0.80 0.03 1.15 0.70 - 32.00 3261.5 Dart 852.50 -7.50 888.00 484.75 0.62 10.91 343.0
AVO 56.00 - 64.80 9.53 - 0.24 25.9 CentAsiaM♦ 287.50 -1.00 345.50 203.00 5.35 13.88 479.4 Petards 26.80 1.30 38.89 17.20 - 11.55 90.3
LPA 157.50 - 184.00 123.00 1.62 11.74 11.5 Vernalis 5.00 0.99 19.25 2.80 - -0.55 6569.6 gamingrealms 7.85 0.13 13.75 5.50 - -4.62 50.2
CareTech 392.00 -1.00 461.00 371.00 2.36 15.38 61.1 Connema 3.15 -0.05 5.60 1.45 - -13.82 143.4 RedhallGp 9.00 - 12.14 6.97 - -15.25 10.6
ThorpeFW 302.50 6.50 412.50 290.00 1.62 24.18 19.6 GoalsSocc 83.50 - 114.00 63.75 - 9.08 15.0
GrekaDrill 1.70 - 4.75 1.23 - -2.54 74.9
Zytronic 411.00 -39.00 635.00 380.00 3.59 14.27 208.5 Tristel 320.00 2.50 385.00 180.00 1.26 39.41 39.2 Real Estate Renew 393.00 3.00 473.75 355.00 2.12 19.90 322.9 IDE Group Holdings 13.00 - 37.00 11.02 - -19.32 22.1
HighldGld 155.80 -2.90 181.00 133.75 6.67 18.23 989.0 Restore 558.00 -2.00 601.00 368.50 0.78 83.28 144.3
House, Leisure & Pers Goods InlandHms 67.20 - 70.40 51.00 2.53 8.66 105.8 MinoanGp 6.10 -0.30 11.50 4.52 - -4.15 1134.9
Financial General Stratex 0.68 0.05 1.65 0.45 - -0.67 1004.9
Lok'nStor♦ 415.00 -6.00 475.00 345.00 2.41 39.60 6.6 SafeCharge♦ 342.00 11.00 347.00 217.00 3.82 29.32 294.9 PeelHtls 90.00 - 149.00 65.00 - 60.00 0.9
Arbuthnot♦ 1535 - 1530 1225 2.08 34.97 1.2 Airea♦ 59.00 -1.50 74.40 28.51 2.54 17.15 45.7 Servoca 13.75 - 28.10 10.90 2.55 8.04 1470.7
LXB Retail 22.85 - 40.19 18.00 - -2.49 4.3
Churchll♦ 1087.5 - 1270 780.00 2.04 18.78 1.4 Tribal Grp♦ 81.50 - 94.50 67.00 - 62.69 1.2

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) ..CULS# 110.00 -4.50 117.95 104.24 - - - JPM Amer 409.00 0.50 419.00 282.25 1.22
432.9 -5.5 ..Sub# 13.50 -0.75 16.40 2.30 - - - Conventional - Property ICs 52 Week Dis(-)
Price +/-Chg High Low Yld NAV or Pm Edin Inv 696.00 6.00 786.00 608.00 3.64 761.5 -8.6 JPM Asn 366.00 -5.00 381.00 266.50 2.73
405.6 -9.8 PolarHealth 194.75 1.75 219.25 175.50 1.62 209.9 -7.2 Price +/-Chg High Low Yld NAV or Pm Guide to FT Share Service
3i Infra 225.00 -0.75 272.33 197.00 4.25 211.3 6.5 Edin WWd 838.00 -4.00 846.00 559.00 - 815.6 2.7 JPM Brazil 63.00 -0.50 74.50 59.00 1.27
71.6 -12.0 PolarTech 1220 -14.00 1240 949.63 - 1252.4 -2.6 Direct Property
AbnAsianIn♦ 211.00 -1.00 225.00 200.00 4.50 230.7 -8.5 EP Global♦ 315.00 1.00 331.00 287.75 1.37 337.3 -6.6 JPM China 312.00 -3.00 345.00 223.95 0.51
362.6 -14.0 RIT Cap 2025 - 2055 1812 1.58 1871.7 8.2
AEW UK REIT 98.50 0.70 104.50 95.00 8.12 94.4 4.3
AbnAsian 1047.5 -7.50 1094.9 988.00 1.15 1218.5 -14.0 Euro Ast 123.95 -0.16 136.00 119.00 58.46 - - JPMElct MC 100.50 - 103.00 98.00 0.35
102.1 -1.6 Ruffer Inv Pr 232.50 -1.00 242.00 220.00 0.77 228.4 1.8
CustdnREIT♦ 118.00 -0.60 121.50 110.75 5.40 103.7 13.8 For queries about the FT Share Service pages e-mail
Abrdn Div I&G 121.75 0.75 125.00 113.50 5.10 124.1 -1.9 EuroInvT 942.00 -7.00 974.00 854.00 2.55 1050.4 -10.3 ..MG 830.00 - 833.40 733.60 1.33
853.4 -2.7 Schroder ToRt♦ 364.00 -2.00 383.00 289.50 1.24 356.9 2.0
F&CComPrp 143.80 -0.20 152.30 133.90 4.17 142.4 1.0 ft.reader.enquiries@morningstar.com.
AbnEmgMkts 604.00 -7.00 658.00 544.70 0.83 704.3 -14.2 F&C Cp&I 340.00 - 343.00 305.00 3.07 333.9 1.8 ..MI 117.00 - 120.99 104.00 3.59
120.4 -2.8 SchdrAsiaP 460.00 -1.00 486.00 392.00 1.03 523.5 -12.1
F&CUKRealE 105.50 -0.50 109.00 99.00 4.74 106.8 -1.2
AbnJapInv 622.50 5.00 680.50 542.00 0.96 707.2 -12.0 F&CGblSmlr 1405 5.00 1420 1255 0.87 1413.7 -0.6 JPM Emrg 869.00 -13.00 935.00 608.75 1.27
997.2 -12.9 Schdr Inc 302.00 3.00 303.00 263.30 3.51 328.7 -8.1 All data is as of close of the previous business day. Company classifications
Longbow 104.50 0.75 106.25 100.50 5.74 99.4 5.1
AbnLatAmIn 66.80 -1.20 79.92 66.40 5.24 76.5 -12.7 F&CMgdG 208.00 - 211.50 184.00 - 206.0 1.0 JPM EurGth 312.50 -0.50 339.00 288.00 2.19
343.1 -8.9 SchdrJap 217.00 2.00 237.00 190.00 1.61 237.2 -8.5 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
SLIPropInc 96.00 0.40 97.00 87.26 4.96 89.4 7.4
AbnNewDn 237.00 -2.00 248.00 212.00 1.69 276.4 -14.3 F&CMgdI 139.50 - 146.00 127.00 3.94 136.8 2.0 JPM EurInc 165.00 0.50 178.00 147.50 3.03
181.3 -9.0 SchdrOrient 258.50 -0.50 271.00 237.50 3.40 257.1 0.5 100 constituent stocks are shown in bold.
UKComPrp 89.10 -0.40 92.50 84.60 4.13 93.4 -4.6
AbnNewIndia 446.00 -7.00 547.00 408.00 - 520.3 -14.3 F&C UK HIT A 101.50 0.50 109.00 94.50 4.73 112.9 -10.1 JPM EuSm 425.00 -3.00 448.00 360.00 1.11
460.1 -7.6 SchdrUK 196.25 -0.25 198.00 163.52 2.75 213.7 -8.2 Closing prices are shown in pence unless otherwise indicated. Highs & lows
AbnNewThai 566.00 - 596.00 495.25 1.82 666.4 -15.1 F&C UK HIT B 102.50 0.50 108.00 95.00 4.68 112.9 -9.2 JPM Clavr♦ 764.00 -1.00 768.00 658.72 3.21
787.3 -3.0 SchdrUKMd 572.00 2.00 574.00 487.85 2.03 658.0 -13.1 Property Securities are based on intra-day trading over a rolling 52 week period. Price/earnings
F&C UK HIT UNIT 407.00 1.00 427.04 351.50 0.86 451.7 -9.9 JPMGIConv 96.20 -0.40 102.75 95.00 4.68
99.5 -3.3 ScotAmer 373.00 -0.50 383.00 339.50 2.95 358.7 4.0 TR Prop 411.50 -2.50 419.00 331.00 2.55 416.0 -1.1
AbnSmlInCo 298.50 - 304.00 218.00 2.36 348.3 -14.3 ratios (PER) are based on latest annual reports and accounts and are updated
Abf Sml 1400 6.00 1416 1240 1.99 1602.5 -12.6 FidAsian 403.50 0.50 408.45 352.00 1.24 413.6 -2.4 JPM GEI 126.25 -1.75 143.00 120.20 3.88
134.4 -6.1 Scottish Inv 855.00 8.00 897.00 715.50 1.61 947.3 -9.7 VCTs 52 Week Dis(-) with interim figures. PER is calculated using the company’s diluted earnings
Abf Spl Inc 96.20 -2.90 109.38 89.00 - 107.9 -10.8 FidChiSpS 250.50 -1.50 263.00 195.20 1.00 289.8 -13.6 JPM Gl Gr&Inc 320.00 2.00 397.43 292.81 3.28
316.3 1.2 ScottMort 502.00 -6.50 512.00 378.00 0.60 486.1 3.3 Price +/-Chg High Low Yld NAV or Pm from continuing operations. Yields are based on closing price and on dividends
Alliance 743.00 - 774.00 680.00 1.77 791.7 -6.2 Fid Euro♦ 222.50 1.00 235.00 199.50 1.87 248.2 -10.4 JPM I&C Uni 388.00 - 394.00 347.20 -
- - ScottOrtll 1005 2.00 1095 936.00 1.14 1142.8 -12.1 AlbionDev♦ 72.50 - 71.00 65.00 5.52 71.9 0.8 paid in the last financial year and updated with interim figures. Yields are
AllianzTech 1390 -12.50 1420 950.00 - 1354.7 2.6 Fid Jap 157.50 0.75 160.00 108.00 - 172.6 -8.7 JPM Ind 701.00 -13.00 785.00 644.00 -
809.1 -13.4 Seneca I&G 176.50 - 179.89 167.00 3.51 174.2 1.3 AlbionVCT 66.50 - 71.94 65.00 7.52 72.1 -7.8 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
Art Alpha 342.00 4.00 350.00 278.00 1.26 408.9 -16.4 Fid Spec 273.50 1.00 276.00 228.00 1.65 276.4 -1.0 JPM JpSm 432.50 1.00 468.00 332.15 -
498.4 -13.2 Shires Inc 282.50 1.00 295.00 239.00 4.51 283.4 -0.3 ArtemisVCT 73.00 - 84.89 62.00 5.48 69.5 5.0 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
..Sub# 0.10 - 3.50 0.05 - - - FinsG&I♦ 792.00 - 796.00 705.79 1.74 790.7 0.2 JPM Jap 454.00 -4.00 462.00 354.91 0.80
505.5 -10.2 StdLf Eqt 495.50 2.50 502.00 430.98 3.35 500.0 -0.9 Baronsmead 2nd VT 87.00 - 91.59 84.50 3.45 91.3 -4.7 capital changes where appropriate.
Aurora Inv♦ 218.00 1.00 219.50 190.00 0.46 215.4 1.2 FstPacfic HK HK$ 4.01 0.02 6.34 3.84 3.53 - - JPM Mid 1257.5 -5.00 1280 1003 1.83
1325.0 -5.1 StrategicEq 221.50 -0.50 242.00 215.00 0.35 263.4 -15.9 BSC VCT♦ 71.00 - 78.00 69.50 31.34 78.5 -9.6 Trading volumes are end of day aggregated totals, rounded to the nearest
Axiom♦ 103.00 -0.50 109.00 92.81 5.97 102.4 0.6 For & Col 684.00 3.00 686.00 568.70 1.52 692.0 -1.2 JPM Mlti-As 94.50 - 103.56 91.00 -
100.4 -5.9 Temp Bar 1326 10.00 1341 1170 3.10 1406.8 -5.7 ..VCT2 55.00 - 57.43 53.00 5.45 59.2 -7.1 1,000 shares.
BG Japan 832.00 2.00 886.00 625.50 - 817.2 1.8 Geiger 19.55 - 28.00 17.00 - 18.9 3.4 JPMRussian 511.00 -5.00 561.70 438.75 4.50
601.5 -15.0 TempEmerg 737.00 -9.00 830.00 667.50 1.12 851.9 -13.5 Crown Place 29.10 - 29.65 27.00 6.87 31.3 -7.0 Net asset value per share (NAV) and split analytics are provided only as a
BG Shin 987.00 -1.00 994.00 629.00 - 908.3 8.7 GenEmer 705.00 -11.00 751.00 632.00 1.49 819.7 -14.0 JPM Smlr 1247.5 5.00 1270 883.00 1.84
1414.0 -11.8 Tetragon $ 12.70 0.08 14.02 12.05 5.46 20.9 -39.2 Inc&GthVCT 71.00 - 87.00 68.50 9.86 79.3 -10.5 guide. Discounts and premiums are calculated using the latest cum fair net
Bankers♦ 887.00 1.00 926.00 771.10 2.07 896.2 -1.0 GRIT 9.00 - 15.20 8.25 - 19.2 -53.1 JPM US Sml 303.00 0.50 306.00 247.00 -
303.6 -0.2 TRIG 106.80 -0.60 112.30 101.00 5.96 102.1 4.6 KingsAYVCT 21.20 - 22.80 19.00 4.72 20.6 2.9 asset value estimate and closing price. Discounts, premiums, gross redemption
BH Global 1380 2.50 1435 1247 - 1481.0 -6.8 GoldenPros 29.90 -0.25 38.50 28.50 - 38.4 -22.1 KeystoneInv 1782.5 -2.50 1845 1633.8 2.97
2031.1 -12.2 TREurGth 1111 2.00 1279 980.00 1.04 1178.7 -5.7 Nthn 2 VCT 63.00 - 80.00 61.50 8.73 66.5 -5.3 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
..USD $ 13.75 0.05 14.26 12.45 - 14.8 -7.1 Gulf Invest $ 1.00 - 1.00 0.85 3.00 1.2 -16.7 Law Deb 616.00 4.00 652.00 550.00 2.76
684.1 -10.0 TroyInc&G 77.90 0.10 83.50 72.60 3.29 78.4 -0.6 Nthn 3 VCT 89.50 - 102.50 88.50 6.15 94.6 -5.4 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BH Macro 1962 10.00 2100 1876 - 2181.0 -10.0 Hansa♦ 1015 - 1090 872.50 1.58 1424.8 -28.8 Lazard WorldTst 375.00 1.00 396.00 332.00 2.56
396.0 -5.3 Utilico Emerging Market 211.15 -1.00 233.00 203.00 3.18 239.6 -11.9 NthnVent 68.00 - 86.50 62.75 4.41 70.1 -3.0 in pence.
..EUR € 18.57 -0.10 20.85 18.10 - - - ..A 980.00 - 1036 880.00 1.63 1424.8 -31.2 LinTrain £ 1035 - 1070 720.51 1.49
781.8 32.4 Utilico Emerging Market 211.15 -1.00 233.00 203.00 3.18 239.6 -11.9 ProVenGI 63.50 - 83.00 60.50 7.09 68.7 -7.6
..USD $ 19.75 - 21.00 18.90 - 22.1 -10.6 Hend Alt 277.50 -0.50 305.00 265.00 1.37 342.9 -19.1 Lowland 1560 2.50 1590 1440 3.08
1676.4 -6.9 UIL Inv 164.00 -5.50 180.00 150.00 4.57 259.1 -36.7 ProVenVCT 86.50 - 102.00 84.00 5.78 92.9 -6.9 X FT Global 500 company
BiotechGth 720.00 -11.00 883.50 650.00 - 774.3 -7.0 Hen Div Inc Tr 91.10 -0.40 97.67 86.40 5.60 87.8 3.8 Majedie 292.50 -0.50 311.00 269.05 3.16
330.5 -11.5 VEIL 462.00 1.00 502.00 330.25 - 562.8 -17.9 UnicornAIM 143.00 - 146.00 132.00 6.47 162.2 -11.8 ♦ trading ex-dividend
BlckRCom 84.80 1.10 85.00 66.25 4.72 89.0 -4.7 HenEuroF 1300 -5.00 1430 1195 2.15 1352.3 -3.9 Man&Lon 487.00 -3.50 494.68 340.00 0.74
499.8 -2.6 Witan 1096 - 1335.37 977.58 1.87 1108.6 -1.1
Ordinary Income Shares 52 Week HR ■ trading ex-capital distribution
BlckREmEur 349.50 -2.50 396.53 217.25 1.52 366.1 -4.5 HenEuro 1167.5 2.50 1235 1030 2.14 1232.7 -5.3 Marwyn Val 126.00 - 172.75 122.00 -
201.3 -37.4 WitanPac 335.00 -4.00 354.00 304.65 1.42 389.9 -14.1
Price +/-Chg High Low Yld WO GRY 0%
# price at time of suspension from trading
BlckRFrnt 162.50 -2.00 169.50 144.00 3.10 156.0 4.2 HenFarEs♦ 368.50 -2.00 390.75 346.75 5.70 366.3 0.6 MercantIT 2215 5.00 2220 1886 2.11
2418.4 -8.4 WwideHlth 2560 - 2707 2285 0.88 2551.3 0.3
BlckRGtEur♦ 342.00 -1.00 346.00 306.50 1.59 359.8 -4.9 HenHigh 186.00 -1.25 201.50 165.00 5.05 190.6 -2.4 MrchTst♦ 526.00 6.00 526.00 450.00 4.68
553.1 -4.9 JPM I&C 99.50 - 103.99 83.50 7.64 - - The prices listed are indicative and believed accurate at the time of publication.
Conventional - Private Equity 52 Week Dis(-)
BlckR I&G 204.00 -2.00 214.00 185.00 3.14 214.1 -4.7 HenInt Inc♦ 164.75 0.75 172.00 154.00 3.03 163.7 0.6 Mid Wynd 505.00 - 520.00 436.34 0.99
494.3 2.2 Rghts&Icp 2135 - 2172.36 1951 1.42 - - No offer is made by Morningstar or the FT. The FT does not warrant nor
Price +/-Chg High Low Yld NAV or Pm
BlckRckLat 449.00 -12.50 501.50 400.50 2.45 521.9 -14.0 Hen Opp 1045 -2.50 1110 890.00 1.87 1280.2 -18.4 Miton Global 274.50 0.50 298.00 240.00 -
277.3 -1.0 Zero Dividend Preference Shares 52 Week HR guarantee that the information is reliable or complete. The FT does not accept
HenSmlr 954.00 5.00 960.00 747.93 1.89 1045.1 -8.7 MitonUKMic 66.20 0.20 68.00 57.00 0.54
70.9 -6.6 AbnPvtEq 7.50 0.25 147.00 6.50 50.40 7.8 -3.8
BlckRckNrAm 163.25 0.25 171.00 144.00 3.00 172.2 -5.2 Price +/-Chg High Low SP WO TAV 0% responsibility and will not be liable for any loss arising from the reliance on
Herald 1290 -15.00 1320 962.00 - 1464.1 -11.9 Monks 822.00 -3.00 826.00 654.50 0.15
796.1 3.3 Altamir € 17.24 - 17.50 12.70 3.81 21.1 -18.3
BlckRSmlr 1487.5 7.50 1510 1155 1.41 1597.1 -6.9 Abf Spl Inc 108.50 - 110.00 101.00 - - - or use of the information.
HICL Infra 145.10 1.10 175.50 133.00 5.31 146.9 -1.2 MontanSm 842.50 - 855.00 760.00 0.98
978.3 -13.9 Electra 830.00 2.50 2793.55 820.00 13.25 1114.0 -25.5
BlckRThrmt 530.00 -3.00 536.00 416.25 1.56 589.3 -10.1 JPM I&C 189.50 - 191.00 186.00 - - -
Highbridge Multi 225.00 0.25 226.00 202.50 - 224.3 0.3 Mur Inc 788.00 4.00 825.00 710.00 4.28
864.4 -8.8 F&C PvtEq 363.50 -7.00 389.00 308.00 4.66 349.1 4.1
BlckRWld 412.50 1.50 425.00 319.13 4.36 467.3 -11.7 JZ Capital 434.00 - 438.00 409.00 -45.9 - 483.7 The FT Share Service is a paid-for-print listing service and may not be fully
Impax Env.♦ 270.00 -3.00 273.00 225.00 0.72 278.6 -3.1 Mur Int 1174 -8.00 1314 1156 4.17
1158.4 1.3 HVPE 1222 2.00 1310 1174 - 1565.8 -22.0
Brit Emp 753.00 10.00 755.00 660.00 1.55 827.8 -9.0 UIL Limited 2024 ZDP 107.00 0.25 107.48 100.00 -7.7 -10.4 138.4 representative of all LSE-listed companies. This service is available to all listed
Ind IT 762.00 -1.00 770.00 478.20 0.26 656.2 16.1 NewCtyEgy 16.50 - 17.25 9.00 -
- - HgCapital 1900 -7.50 1940 1510 3.26 1889.2 0.6
Brunner 792.00 2.00 798.00 690.00 2.07 878.4 -9.8 UILFn18 159.50 - 160.00 153.75 -98.2 - 160.5 companies, subject to the Editor’s discretion. For new sales enquiries please
IntBiotech 584.00 2.00 650.00 518.00 3.94 622.2 -6.1 NewCityHY♦ 61.00 - 64.51 56.60 7.21
57.5 6.1 ICG Ent Tr 879.00 7.00 888.00 719.00 1.82 967.4 -9.1
Caledonia Inv 2700 -40.00 3021.37 2515 2.03 3378.8 -20.1 UILFn20 142.50 - 145.00 134.13 -41.8 -53.0 154.9 email daniel.fish@ft.com or call +44 (0)20 7873 4571.
Intl PP♦ 144.80 1.00 166.80 138.20 4.65 140.8 2.8 New Star IT 107.00 - 119.90 98.50 0.75
157.3 -32.0 IndiaCap 97.90 -0.10 120.00 86.90 - 114.9 -14.8
CanGen C$ 24.50 -0.22 24.75 20.25 3.02 35.2 -30.4 UIL Finance 2022 ZDPs 126.00 - 127.85 111.00 -18.7 -25.2 147.0
Inv AsiaTr 293.50 -3.00 312.00 261.00 1.47 334.1 -12.2 NorthAmer♦ 1280 - 1385 1151.53 2.93
1352.7 -5.4 JZ Capital 487.00 - 573.00 438.00 - 714.6 -31.8
Cap Gear 3970 20.00 4000 3752.62 0.50 3905.4 1.7
City Merch♦ 193.00 -0.25 201.00 177.00 5.18 189.6 1.8 Inv IncGro 289.00 -1.00 309.50 260.00 3.72 328.1 -11.9 NthAtSml 2705 10.00 2930 2370 -
3581.7 -24.5 Mithras
NB PE Ptnr
252.00
981.00
-
-5.00
267.20 215.22 0.40
1098 934.00 -
257.3
1230.7
-2.1
-20.3 Investment Companies - AIM Data provided by Morningstar
CityNatRs♦ 118.75 0.75 130.00 105.77 4.72 145.1 -18.2 IP EnInc 74.80 - 84.15 74.00 6.68 74.2 0.8 Oryx Int 812.50 - 824.50 665.00 -
955.9 -15.0
IPST BalR 140.50 - 144.00 129.00 - 141.6 -0.8 PacAsset 257.00 -2.50 268.00 234.00 1.01
272.2 -5.6 Nthn Invs 224.00 - 695.00 200.00 13.39 237.1 -5.5
City Lon♦ 436.00 2.50 497.69 392.00 3.89 428.3 1.8 52 Week Dis(-)
IPST Gbl Eq 207.00 - 214.00 192.00 3.14 210.5 -1.7 PacHorzn 361.00 -3.00 366.16 245.65 -
354.2 1.9 Pantheon 1985 10.00 2000 1720 - 2345.8 -15.4
DiverseInc♦ 106.75 1.75 107.50 95.50 2.81 106.2 0.5 Price +/-Chg High Low Yld NAV or Pm
IPST Mngd 102.00 - 103.00 100.50 - 103.5 -1.4 PerpInc&Gr 370.50 5.00 411.58 329.50 3.64
413.6 -10.4 PantheonR 1895 - 1911.25 1460 - - -
Dun Inc♦ 259.50 2.00 273.28 234.00 4.51 289.6 -10.4 AbnFrntrMkts 59.75 - 68.35 57.50 2.5 66.6 -10.3
IPST UK Eq♦ 187.50 0.50 194.50 167.00 3.39 191.1 -1.9 PerAsset 39450 -50.00 41681.6 38700 1.42
39094. 0.9 PrincssPE € 10.18 0.18 10.95 9.36 5.56 - -
Dun Sml 287.00 0.50 294.00 225.50 2.14 336.0 -14.6 CrysAmber 219.00 - 246.75 165.00 2.3 237.2 -7.7
IP UKSmall♦ 522.00 -1.00 530.00 457.00 3.30 540.6 -3.4 4 Riverstone 1250 2.00 1385 1160 - 1519.4 -17.7
EcofinGlobal 125.50 -1.00 137.93 109.00 5.10 139.4 -10.0 Infra India 3.10 -0.10 6.50 2.00 - 33.5 -90.7
StdLfPv 337.50 -2.00 356.00 306.00 2.84 388.3 -13.1
EdinDragn 378.00 -4.00 394.00 338.75 0.85 432.2 -12.5 JLaingInf 117.60 1.40 140.10 109.00 5.92 120.4 -2.3 PolarFins 140.25 - 147.50 127.50 2.64 147.2 -4.7
www.morningstar.co.uk
Wednesday 16 May 2018 FINANCIAL TIMES 23

MANAGED FUNDS SERVICE

Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield

GBP Distributing Class (H) £ 11.79 - 0.03 0.49 UK Corporate Bond - Gross £ 2.57 - -0.01 2.79 Invesco ASEAN Equity A $ 110.32 - -1.02 0.30
Dodge & Cox Worldwide Funds plc-International Stock Fund UK Corporate Bond Fund Gross Inc £ 11.77 - 0.02 2.85 Invesco Bond A $ 27.50 - -0.10 2.27
Abbey Life Assurance Company Limited (UK)
USD Accumulating Share Class $ 17.90 - 0.00 0.00
Link Asset Services (UK) Ministry of Justice Common Investment Funds (UK)
1 Wythall Green Way, Wythall, Birmingham, B47 6WG UK Gilt Fund Inc £ 1.35 - 0.00 1.64 Invesco Continental Eurp Small Cap Eqty A $ 287.01 - -1.62 0.00 65 Gresham Street, London, EC2V 7NQ Property & Other UK Unit Trusts
additional fund prices can be found @ www.abbeylife.co.uk EUR Accumulating Share Class € 17.65 - 0.01 0.00 Order Desk and Enquiries: 0345 922 0044
The Equity Idx Tracker Fd Inc 1751.00 1751.00 2.00 2.74
Insurances UK Gilt Gross £ 2.24 - 0.00 1.62 Invesco Emerging Markets Equity A $ 49.95 - -0.43 0.00 Authorised Inv Funds
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Distribution Units
Life Funds LF Heartwood Balanced MA B Acc X 147.78 - 0.13 0.43
USD Accumulating Share Class $ 25.87 - 0.08 0.00 UK Long Corp Bond £ 1.51 - 0.00 3.00 Invesco Emerging Markets Bond A $ 21.18 - -0.02 5.21
Prop. Acc. Ser 2 1605.90 1690.40 -0.30 -
UK Long Corp Bond - Gross £ 2.97 - 0.00 2.93 Invesco Continental European Equity A € 9.59 - 0.02 0.82 LF Heartwood Cautious MA B Acc X 141.79 - 0.05 0.60
Aspect Capital Ltd (UK) GBP Accumulating Share Class £ 29.68 - 0.05 0.00 FIL Investment Services (UK) Limited (1200)F (UK)
Selective Acc. Ser 2 1898.40 1998.30 -3.70 - Mirabaud Asset Management (LUX)
Other International Funds 130, Tonbridge Rd, Tonbridge TN11 9DZ UK Long Corporate Bond - Gross Inc £ 12.23 - 0.04 2.99 Invesco Gilt A £ 15.85 - 0.00 0.87 LF Heartwood Defensive MA B Acc 115.58 - 0.04 0.15
GBP Distributing Share Class £ 18.55 - 0.04 0.78 www.mirabaud.com, marketing@mirabaud-am.com
American Ser. 4 2429.80 2557.70 11.70 - Callfree: Private Clients 0800 414161
Aspect Diversified USD $ 429.86 - 3.61 0.00 Retail Share Classes Conviction based investment vehicles details available here www.mirabaud-am.com
Broker Dealings: 0800 414 181 Invesco Global Small Cap Equity A NAV $ 163.78 - -0.69 0.00 LF Heartwood Growth MA B Acc X 180.44 - 0.41 0.04
EUR Accumulating Share Class € 28.10 - 0.10 0.00
Custodian Ser. 4 571.10 601.10 0.20 - OEIC Funds Emerging Markets - retail £ 1.91 - -0.01 0.18 Regulated
Aspect Diversified EUR € 246.96 - 1.87 0.00
Invesco Global High Income A NAV $ 12.09 - 0.00 5.10 LF Heartwood Income MA B Inc X 112.93 - 0.12 3.32
GBP Distributing Class (H) £ 11.63 - 0.03 0.53 {*}CAR - Net income reinvested Mir. - Glb Strat. Bd I USD $ 109.24 - 0.02 0.00
Equity Ser. 4 711.40 748.90 0.60 - Allocator World Fund N-ACC-GBP £ 1.64 - -0.01 0.99
Aspect Diversified GBP £ 129.50 - 1.02 0.00
Invesco Gbl R/Est Secs A GBP F F £ 9.19 - -0.05 1.16 LF Heartwood Income Plus MA B Inc X 120.49 - 0.23 3.80
American Fund W-ACC-GBP £ 39.01 - 0.26 0.39 Mir. - EqPanEuropeSm&Mid £ 163.47 - -0.53 0.00
European Ser 4 779.40 820.40 0.30 - Aspect Diversified CHF SFr 116.22 - 0.87 0.00
Invesco Global Health Care A $ 129.81 - 0.56 0.00 LF Seneca Diversified Growth A Acc 274.34 - 0.50 2.15
American Special Sits W-ACC-GBP £ 14.73 - 0.09 0.59 Mir. - Eq UK High Income I GBP £ 128.36 - -0.43 0.00
Fixed Int. Ser. 4 939.30 988.80 0.00 - Aspect Diversified Trends USD $ 128.42 - 1.01 0.00 Findlay Park Funds Plc (IRL)
Invesco Global Select Equity A $ 16.87 - 0.00 0.16 LF Seneca Diversified Growth B Acc 164.91 - 0.30 2.77
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Intl Ser. 4 608.50 640.50 1.00 - Asia Pacific Ops W-Acc £ 1.90 - -0.01 1.11
Aspect Diversified Trends EUR € 123.21 - 0.95 0.00 FCA Recognised
Invesco Jap Eqty Core A $ 23.04 - -0.06 0.15 LF Seneca Diversified Growth N Acc 162.31 - 0.30 2.53
Japan Ser 4 513.40 540.50 0.30 - Cash Fund Y-Acc-GBP £ 1.00 - 0.00 0.20 American Fund USD Class $ 111.48 - -0.07 0.00
Aspect Diversified Trends GBP £ 130.93 - 1.01 0.00
Invesco Japanese Equity A $ 27.34 - -0.18 0.00 LF Seneca Diversified Income A Inc 93.91 - 0.02 4.94
Man. Ser. 4 2066.20 2174.90 1.20 - Cash Fund Y-Inc-GBP £ 1.00 - 0.00 0.22 American Fund GBP Hedged £ 59.15 - -0.04 0.00
Invesco Korean Equity A $ 26.75 - -0.16 0.00 LF Seneca Diversified Income B Inc 112.86 - 0.03 4.92
Money Ser. 4 525.60 553.30 0.00 - Dragon Capital Group Asian Dividend Fund W-ACC-GBP £ 1.76 - -0.02 2.31 American Fund GBP Unhedged £ 81.99 - -0.31 0.00
Atlantas Sicav (LUX) 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Invesco PRC Equity A $ 80.65 - -0.69 0.00 LF Seneca Diversified Income N Inc 111.21 - 0.02 4.93
Prop. Ser. 4 1142.50 1202.60 -0.20 - Regulated Asian Dividend Fund W-INC-GBP £ 1.55 - -0.01 3.31
Fund information, dealing and administration: funds@dragoncapital.com Investment Adviser - Morant Wright Management Limited
Invesco Pacific Equity A $ 69.49 - -0.45 0.07
American Dynamic $ 4662.00 - 61.21 0.00 Other International Funds China Consumer Fund W-ACC-GBP £ 2.94 - 0.00 0.45
Custodian Ser 5 545.00 573.70 0.10 - LF Morant Wright Japan A Acc X 421.70 - 2.70 0.00 Morgan Stanley Investment Funds (LUX)
Vietnam Property Fund (VPF) NAV $ 0.80 - 0.03 0.00 Foord Asset Management Invesco Global Technology A $ 23.64 - 0.01 0.00 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
International Ser 5 580.70 611.30 0.90 - American One $ 4350.27 - 98.31 0.00 Emerging Asia Fund W-ACC-GBP £ 1.54 - -0.01 0.52 Website: www.foord.com - Email: info@foord.com LF Morant Wright Japan A Inc X 411.47 - 2.63 0.40 www.morganstanleyinvestmentfunds.com
FCA Recognised - Luxembourg UCITS Invesco UK Eqty A £ 9.60 - 0.01 1.70
Bond Global € 1390.22 - 0.26 0.00 Emerging Eur Mid East and Africa W £ 2.18 - -0.03 1.62 FCA Recognised
Managed Ser 5 1971.90 2075.70 1.10 - LF Morant Wright Japan B Acc X 454.26 - 2.91 0.86
Foord International Fund | R $ 41.16 - 0.26 -
US Advantage A F $ 84.94 - -1.29 0.00
Money Ser 5 514.60 541.70 0.00 - Eurocroissance € 1051.76 - 15.14 0.00 DSM Capital Partners Funds (LUX) Enhanced Income Fund W-ACC-GBP £ 1.46 - 0.00 6.42 LF Morant Wright Japan B Inc X 417.36 - 2.68 0.87
www.dsmsicav.com Foord Global Equity Fund (Lux) | R $ 13.65 - 0.12 -
Asian Equity A F $ 54.29 - -0.77 0.00
Property Ser 5 1090.30 1147.70 -0.20 - Far East $ 1001.14 - 11.29 0.00 Regulated Enhanced Income Fund W-INC-GBP £ 1.00 - 0.00 6.92 Janus Henderson Investors (UK) LF Morant Wright Nippon Yield A Acc X 445.43 - 2.03 2.04
Regulated
PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Asian Property A F $ 21.42 - -0.33 0.00
Pension Funds DSM Global Growth I2 € 197.14 - 0.11 0.00 European Fund W-ACC-GBP £ 15.92 - -0.06 1.58 Foord Global Equity Fund (Sing) | B $ 16.48 - 0.14 0.00 www.janushenderson.com LF Morant Wright Nippon Yield A Inc X 362.87 - 1.66 2.10
American 2980.60 3137.50 16.50 - Authorised Inv Funds Emerg Europ, Mid-East & Africa Eq A F € 78.91 - -2.21 0.00
DSM Global Growth I2 A$ 113.61 - 0.16 - European Fund W-INC-GBP £ 17.62 - -0.07 1.61 Foord International Trust (Gsy) $ 40.86 - 0.27 0.00 LF Morant Wright Nippon Yield B Acc X 467.57 - 2.15 2.03
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Janus Henderson Asia Pacific Capital Growth Fund A Acc 1139.00 - -4.00 0.03
Equity 6431.80 6770.30 6.50 - Emerging Markets Debt A F $ 84.39 - -0.61 0.00
Regulated DSM Global Growth I1 € 122.20 - 0.19 0.00 European Opportunities W-ACC-GBP £ 4.89 - -0.01 0.82 LF Morant Wright Nippon Yield B Inc X 381.00 - 1.75 2.11
Janus Henderson Asian Dividend Income Unit Trust Inc 108.77 114.27 -0.69 5.71 Emerging Markets Domestic Debt AX F £ 11.65 11.65 -0.16 5.54
European 1646.60 1733.20 0.70 - Global Liquidity USD $ 1.00 - 0.00 0.61
DSM US Large Cap Growth A $ 154.49 - 0.14 0.00 Extra Income Fund Y-ACC-GBP £ 1.26 - 0.00 3.54
Franklin Templeton International Services Sarl (IRL) Janus Henderson Cautious Managed Fund A Acc 271.70 - 0.20 3.20 Emerging Markets Equity A F $ 44.50 44.50 -1.00 0.00
Fixed Int. 1756.90 1849.30 0.20 - DSM US Large Cap Growth I2 € 129.26 - -0.15 0.00 Extra Income Fund Y-GACC-GBP £ 1.31 - 0.00 3.73 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Other International Funds Janus Henderson Cautious Managed Fund A Inc 154.90 - 0.10 3.27 Lloyds Investment Fund Managers Limited (1000)F (JER) Euro Bond A F € 16.18 16.18 -0.02 0.00
International 1358.10 1429.50 2.80 - Extra Income Fund Y-GINC-GBP £ 1.29 - 0.00 3.61
Barclays Investment Funds (CI) Ltd (JER) Franklin Emerging Market Debt Opportunities Fund Plc PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Janus Henderson China Opportunities Fund A Acc 1551.00 - 2.00 0.46 Other International Funds Euro Corporate Bond AX F £ 27.33 27.33 -0.12 1.26
Japan 568.30 598.20 0.30 - Extra Income Fund Y-INC-GBP £ 1.26 - 0.00 3.58 Franklin Emg Mkts Debt Opp CHFSFr 17.28 - -0.77 9.06
FCA Recognised Lloydstrust Gilt £ 12.3500xd - 0.0000 1.88
Janus Henderson Emerging Markets Opportunities Fund A Acc 205.70 - -2.10 0.30 Euro Strategic Bond A F € 46.36 46.36 -0.10 0.00
Managed 5553.40 5845.70 2.40 - Bond Funds Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.03 - 0.00 - Franklin Emg Mkts Debt Opp GBP £ 10.68 - -0.51 6.75
Lloyds Investment Funds Limited
Sterling Bond F £ 0.47 - 0.00 2.06 Janus Henderson European Growth Fund A Acc 240.40 - 0.10 0.85 European Currencies High Yield Bd A F € 24.70 24.70 -0.01 0.00
Property 2981.20 3138.10 -0.30 - Fidelity Short Dated Corporate Bond Fund Y - Gross Inc £ 9.77 - 0.00 4.07 Franklin Emg Mkts Debt Opp SGD S$ 22.97 - -1.14 5.29 Euro High Income € 1.5670xd - -0.0020 3.00
Janus Henderson European Selected Opportunities Fund A Acc 1686.00 - 0.00 0.57 European Equity Alpha A F € 45.45 - 0.03 0.00
Security 1479.60 1557.40 0.00 - Fidelity Short Dated Corporate Bond Fund Y - Gross Acc £ 10.29 - 0.00 3.97 Franklin Emg Mkts Debt Opp USD $ 17.94 - -0.95 6.84 High Income £ 0.8547xd - 0.0000 4.34
Janus Henderson Fixed Interest Monthly Income Fund Inc 21.66 22.59 -0.01 4.79 European Property A F € 36.54 36.54 -0.20 0.00
Selective 2424.10 2551.70 0.80 - Global Dividend Fund W-ACC-GBP £ 2.01 - 0.01 2.89 Sterling Bond £ 1.5090xd - 0.0000 2.68
E.I. Sturdza Strategic Management Limited (GSY) Janus Henderson Global Sustainable Equity Fund A Inc 299.20 - 0.00 0.05
Formerly Hill Samuel Life Assurance Ltd Regulated Lloyds Gilt Fund Limited Eurozone Equity Alpha A F € 13.25 13.25 -0.05 0.00
1 Wythall Green Way, Wythall, Birmingham, B47 6WG Global Dividend Fund W-INC-GBP £ 1.70 - 0.00 3.11
Strat Evarich Japan Fd Ltd JPY ¥ 88927.00 - -503.00 0.00 Janus Henderson Global Equity Income Fund A Inc 62.33 - 0.00 3.22 Lloyds Gilt Fund Quarterly Share £ 1.2990xd - 0.0000 1.60 Global Bond A F $ 41.77 41.77 -0.43 0.00
Managed Ser A (Life) 1952.80 2066.40 0.50 - Global Enhanced Income W-ACC-GBP £ 1.64 - 0.00 3.89
Strat Evarich Japan Fd Ltd USD $ 881.81 - -4.60 0.00 Janus Henderson Global Equity Fund Acc 3130.21 3265.05 -0.70 0.00 Monthly Share £ 1.2470xd - 0.0000 1.60 Global Brands A F $ 125.98 - -1.87 0.00
Managed Ser A (Pensions) 1334.10 1404.30 0.30 - Global Enhanced Income W-INC-GBP £ 1.32 - 0.00 5.04
Janus Henderson Global Technology Fund A Acc 1791.00 - 3.00 0.00 Lloyds Money Fund Limited
Formerly Target Life Assurance Ltd Global Convertible Bond A F $ 45.76 - -0.15 0.00
CCLA Investment Management Ltd (UK) Global Focus Fund W-ACC-GBP £ 21.92 - 0.04 0.35
1 Wythall Green Way, Wythall, Birmingham, B47 6WG Sterling Class £ 52.5200 - 0.0000 -0.20
Senator House 85 Queen Victoria Street London EC4V 4ET Janus Henderson Multi-Asset Absolute Return Fund A Acc 141.80 - 0.00 0.81 Global Property A F $ 30.57 - -0.61 0.00
Managed (Life) 1968.90 2072.50 0.50 - Authorised Inv Funds E.I. Sturdza Funds PLC (IRL) Global High Yield Fund Y-ACC-GBP £ 14.16 - 0.00 3.59
Fundsmith LLP (1200)F (UK) Lloyds Multi Strategy Fund Limited
Regulated Janus Henderson Multi-Manager Active Fund A Acc 229.50 - 0.30 0.00 Indian Equity A F $ 43.83 - -0.58 0.00
Diversified Income 1 Units GBP Inc £ 1.54 1.54 -0.01 3.09 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815 Conservative Strategy £ 1.2400 - 0.0000 0.86
Managed Growth (Life) 662.80 697.70 0.60 - Global High Yield Fund Y-GACC-GBP £ 14.69 - -0.01 3.57
Nippon Growth (UCITS) Fd - B ¥ 96665.00 - 294.00 0.00 www.fundsmith.co.uk, enquiries@fundsmith.co.uk Janus Henderson Multi-Manager Distribution Fund A Inc 137.20 - 0.10 2.99
Growth Strategy £ 1.8370 - -0.0010 0.67 Latin American Equity A F $ 53.03 - -2.29 0.00
Diversified Income 2 Units GBP Inc £ 1.49 1.49 0.00 3.10 Global High Yield Fund Y-GINC-GBP £ 10.70 - -0.03 3.59 Authorised Inv Funds
Managed (Pensions) 8006.70 8428.10 1.90 - Strategic China Panda Fd - USD $ 3717.62 - 52.39 0.00 Janus Henderson Multi-Manager Diversified Fund A Acc 86.00 - 0.01 2.88 Short Maturity Euro Bond A F € 20.36 20.36 0.00 0.00
Diversified Income 3 Units GBP Inc £ 1.50 1.50 0.00 - Fundsmith Equity T Acc 368.91 - 0.15 0.57 Aggressive Strategy £ 2.4930 - -0.0030 0.00
Managed Growth (Pensions) 844.40 888.80 1.00 - Global High Yield Fund Y-INC-GBP £ 10.70 - 0.00 3.53
Strategic Euro Bond Fd - Acc € 1118.53 - -0.81 0.00 Janus Henderson Multi-Manager Global Select Fund Acc 245.60 - 0.40 0.30
The Public Sector Deposit Fund Fundsmith Equity T Inc 342.51 - 0.14 0.57 Global USD Growth Strategy $ 1.6630 - 0.0020 0.00 US Dollar Liquidity A F $ 13.19 - 0.00 0.00
additional fund prices can be found on our website Global Property Fund W-ACC-GBP £ 1.72 - -0.01 2.05
The Public Sector Deposit Fund-share class 1 ♦ F * 100.00 - 0.00 0.59 Strategic Europe Value Fd - EUR € 217.53 - -0.44 0.00 Janus Henderson Multi-Manager Income & Growth Fund A Acc 178.60 - 0.10 2.08 Dealing Daily US Growth A F $ 109.11 - -2.49 0.00
Strategic European Smaller Companies Fd - EUR € 1328.55 - -4.47 0.00
Global Property W Inc £ 1.45 - -0.01 2.92
Asset Management
Managemen
Asset Management
The Public Sector Deposit Fund-share class 4 ♦ F * 100.00 - 0.00 0.53 Janus Henderson Multi-Manager Income & Growth Fund A Inc 156.30 - 0.10 2.11 US Growth AH F € 72.53 72.53 -1.66 0.00

Asset Management
Global Special Sits W-ACC-GBP £ 38.14 - 0.08 0.65
Strategic Global Bond Fd - USD

Strategic Global Quality Fd - USD Inst $ 137.22

$ 1041.69 -

-
-1.46 0.00

-0.15 0.00
Index Emerging Markets P-Acc
Asset Management£ 1.59 - -0.01 1.91
GAM
funds@gam.com, www.funds.gam.com
Regulated
Janus Henderson Multi-Manager Managed Fund A Acc 284.10 -
Lothbury Property Trust (UK)
0.20 0.02

155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900

US Growth AX F £ 81.06 81.06 -0.98 0.00

Janus Henderson Multi-Manager Managed Fund A Inc 276.80 - 0.20 0.02 US Property A F $ 67.94 - -1.69 0.00
CCLA Investment Management Ltd (UK) Index Emerging Markets P-Inc-GBP £ 1.33 - -0.01 1.94 LAPIS TOP 25 DIV.YLD-D £ 102.69 - -0.23 1.99 Property & Other UK Unit Trusts
Senator House 85 Queen Victoria Street London EC4V 4ET Strategic Quality Emerging Bond Fd - USD $ 1034.03 - -0.21 0.00 Janus Henderson Sterling Bond Unit Trust Acc 219.43 228.89 -0.05 2.19
Lothbury Property Trust GBP £ 1950.07 2102.63 8.18 3.09
Property & Other UK Unit Trusts Index Europe ex UK Fund P-Inc-GBP £ 1.38 - 0.00 2.20
Strategic US Momentum and Value Fd - USD Class $ 876.71 - 0.61 0.00 Janus Henderson Sterling Bond Unit Trust Inc 64.51 67.29 -0.02 2.22
CBF Church of England Funds
Algebris Investments (IRL) Index Europe ex UK P-Acc £ 1.46 - 0.00 2.15 Morgens Waterfall Vintiadis.co Inc
Investment Inc 1641.53 1648.17 27.03 3.41 Strategic Japan Opportunities Fund ¥ 64366.00 - 411.00 0.00 GYS Investment Management Ltd
Asset Management
Regulated (GSY) Janus Henderson Strategic Bond Fund A Inc 122.30 - -0.10 3.70 Other International Funds

Asset Management Asset Management

Index Japan Fund P-Inc-GBP £ 1.59 - 0.00 1.68 Regulated
Algebris Financial Credit Fund - Class I EUR € 156.85 - 0.24 0.00 Investment Acc 3657.38 3672.19 60.21 0.00 Strategic Beta Flex Fund € 1019.94 - 0.51 0.00 Janus Henderson UK & Irish Smaller Companies Fund A Acc 685.10 - 4.80 0.41 Phaeton Intl (BVI) Ltd (Est) $ 525.63 - 23.34 0.00
Index Japan P-Acc £ 1.67 - 0.00 1.66 Taurus Emerging Fund Ltd $ 189.56 193.43 -10.94 0.00
Algebris Financial Income Fund - Class I EUR € 147.07 - -0.20 0.00 Global Equity Inc 185.16 185.60 3.78 3.89 Janus Henderson UK Absolute Return Fund A Acc 158.80 - 0.20 0.00
Index Pacific ex Japan P-Acc £ 1.56 - -0.01 3.43
Algebris Financial Equity Fund - Class B EUR € 136.11 - -0.41 0.00 Global Equity Acc 299.62 300.33 6.11 0.00 Janus Henderson UK Alpha Fund A Acc 159.10 - 1.40 1.80
Index Pacific ex Japan P-INC-GBP £ 1.23 - 0.00 3.50 Genesis Asset Managers LLP
Algebris Asset Allocation Fund - Class B EUR € 98.18 - -0.05 0.00 UK Equity Inc 170.10 170.57 1.76 3.62 Janus Henderson UK Equity Income & Growth Fund A Inc 657.90 - 1.00 3.66
Other International Funds
Index UK Fund P-INC-GBP £ 1.23 - 0.01 2.72 M & G Securities (1200)F (UK)
Algebris Macro Credit B EUR Acc € 110.02 - 0.16 0.00 UK Equity Acc 277.16 277.93 2.87 0.00 Emerging Mkts NAV £ 8.22 - -0.01 1.31 Janus Henderson UK Index Fund A Acc 652.60 - 1.60 2.04 PO Box 9038, Chelmsford, CM99 2XF
Index UK P-Acc £ 1.38 - 0.01 2.67 www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472
Algebris Core Italy Fund - Class R EUR € 99.64 - 0.10 - Fixed Interest Inc 164.17 165.13 0.13 4.02 Janus Henderson UK Property PAIF A Acc £ 2.29 2.41 0.00 2.58
Authorised Inv Funds
Index US Fund P-Inc-GBP £ 1.76 - 0.01 1.59
Fixed Interest Acc 550.96 554.19 0.44 0.00 Janus Henderson UK Property PAIF A Inc £ 1.03 1.08 0.00 2.63 Charifund Inc 1632.89 - 0.30 4.63
EdenTree Investment Management Ltd (UK) Natixis International Funds (LUX) I SICAV (LUX)
PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Index US P-Acc £ 1.96 - 0.01 1.57
Property Fund Inc 135.39 139.93 0.26 5.49 FCA Recognised
Janus Henderson UK Tracker Fund A Acc 293.60 - 0.70 2.06 Charifund Acc 25288.63 - 4.54 4.49
The Antares European Fund Limited Authorised Inv Funds
Index World Fund P-Inc-GBP £ 1.56 - 0.00 1.86 ASG Managed Futures Fund I/A (USD) $ 100.69 100.69 0.07 0.00
Other International Amity UK Cls A Inc 245.60 - 0.60 1.40 Janus Henderson US Growth Fund A Acc 1058.00 - 5.00 0.00
AEF Ltd Usd $ 755.26 - 10.13 - Index World P-Acc £ 1.74 - 0.00 1.83 Harris Global Equity Fund R/A (USD) $ 333.62 333.62 -0.15 0.00
CCLA Fund Managers Ltd (UK) Amity UK Cls B Inc 245.30 - 0.60 2.18
AEF Ltd Eur € 741.58 - 10.92 0.00 Japan Fund W-ACC-GBP £ 3.82 - 0.01 0.45 M & G Securities Ltd (UK) Loomis Sayles Global Growth Equity Fund I/A (USD) $ 135.43 135.43 0.32 0.00
Senator House 85 Queen Victoria Street London EC4V 4ET UK Charity Funds
Higher Income Cls A Inc 141.40 - 0.20 4.22
Property & Other UK Unit Trusts Japan Smaller Cos Fund W-ACC-GBP £ 3.62 - -0.01 0.25 Global Investment House Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 138.59 138.59 0.07 0.00
Charibond 122.65xd - -0.03 2.28
COIF Charity Funds (UK) Higher Income Cls B Inc 147.40 - 0.20 4.17 Global GCC Islamic Fund $ 103.76 - -2.19 0.00
MoneyBuilder Balanced Y-ACC-GBP £ 0.56 - 0.00 3.51
Investment Inc 1483.16 1489.16 18.89 2.68 (Accum Units) 3961.57xd - -1.02 2.28
Arisaig Partners UK Equity Growth Cls A Inc 298.90 - 1.30 1.01 Global GCC Large Cap Fund $ 157.95 - -4.00 0.00
Other International Funds MoneyBuilder Balanced Y-INC-GBP £ 0.59 - 0.00 4.20
Investment Acc 15587.67 15650.77 198.50 0.00 NAACIF 88.07xd - -0.06 3.86 Natixis Investment Funds (UK)
UK Equity Growth Cls B Inc 305.70 - 1.30 1.76 Global Saudi Equity Fund SR 253.27 - -4.53 0.00
Arisaig Africa Consumer Fund Limited $ 14.60 - -0.08 0.00 MoneyBuilder Dividend Y-INC-GBP £ 1.33 - 0.00 4.68 Authorised Funds
Ethical Invest Inc 226.84 227.76 2.96 2.71 (Accum Units) 8757.34xd - -5.29 3.77
Amity Balanced For Charities A Inc 114.00 - -0.20 4.95
Arisaig Asia Consumer Fund Limited $ 94.56 - -0.08 0.00 MoneyBuilder Growth Fund Y-INC-GBP £ 0.84 - 0.01 2.26
Kames Capital ICVC (UK) DNCA European Select Equity Fund £ 1.06 - 0.00 -
Ethical Invest Acc 319.66 320.96 4.16 0.00 Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA
Amity European Fund Cls A Inc 273.20 - -1.30 1.07 Harris Global Concentrated Equity Fund £ 1.69 - 0.00 1.34
Arisaig Global Emerging Markets Consumer Fund $ 11.56 - -0.04 0.00 MoneyBuilder Income Fund Y-ACC-GBP £ 12.76 - 0.00 3.22 HPB Assurance Ltd 0800 358 3009 www.kamescapital.com
Global Equity Inc 175.99 176.40 3.63 - Authorised Funds
Amity European Fund Cls B Inc 276.40 - -1.40 1.87 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 MMIP Investment Management Limited (GSY)
Arisaig Global Emerging Markets Consumer UCITS € 12.48 - -0.08 0.00 H2O MultiReturns Fund N/A (GBP) £ 1.68 - 0.00 0.66
MoneyBuilder Income Fund Y-GACC-GBP £ 14.90 - -0.04 3.24 International Insurances
Global Equity Acc 287.99 288.67 5.93 0.00 Diversified Monthly Inc B Acc 136.07 - -0.06 4.94 Regulated
Amity Global Equity Inc for Charities A Inc 131.20 - 0.20 3.16 Loomis Sayles U.S. Equity Leaders N/A (GBP) £ 2.40 - 0.00 0.13
Arisaig Global Emerging Markets Consumer UCITS STG £ 13.95 - -0.10 0.00 MoneyBuilder Income Fund Y-GINC-GBP £ 1.25 - 0.00 3.30 Holiday Property Bond Ser 1 £ 0.54 - 0.01 0.00 Multi-Manager Investment Programmes PCC Limited
Fixed Interest Inc 135.20 135.99 -0.10 2.45 Diversified Monthly Inc B Inc 109.50 - -0.05 5.07
Amity International Cls A Inc 283.60 - 0.30 1.13 UK Equity Fd Cl A Series 01 £ 2941.46 2966.85 190.48 0.00
Arisaig Latin America Consumer Fund $ 24.86 - -0.44 0.00 MoneyBuilder Income Fund Y-INC-GBP £ 1.22 - 0.01 3.28 Holiday Property Bond Ser 2 £ 0.65 - 0.00 0.00
Fixed Interest Acc 848.01 852.97 -0.65 0.00 Diversified Growth B Acc £ 1.65 - 0.00 2.72
Amity International Cls B Inc 286.40 - 0.20 1.86 Diversified Absolute Rtn Fd USD Cl AF2 $ 1641.24 - -23.92 0.00
Multi Asset Adventurous N-ACC-GBP £ 1.46 - 0.00 1.07 New Capital Fund Management Ltd (IRL)
Property Inc 116.03 119.92 0.08 5.52 Ethical Cautious Managed B Acc £ 1.37 - 0.00 2.02
Amity Sterling Bond Fund A Inc 105.90 - 0.00 4.43 Diversified Absolute Return Stlg Cell AF2 £ 1624.03 - -25.03 0.00 Regulated
Local Authorities Property Fd (LAMIT) (UK) Multi Asset Alloc Advent N-ACC-GBP £ 1.37 - 0.00 1.23
Amity Sterling Bond Fund B Inc 116.20 - 0.00 4.43
Haussmann Ethical Cautious Managed B Inc £ 1.24 - 0.00 2.05 New Capital Euro Value Credit Fund - EUR Inst Acc € 100.09 - -0.17 -
Global Equity Fund A Lead Series £ 1419.39 1425.09 42.33 0.00
Property 297.38 322.45 0.05 4.81 Multi Asset Alloc Def N-ACC-GBP £ 1.17 - 0.00 1.02 Other International Funds
Ethical Corporate Bond B Acc £ 1.88 - 0.00 3.04
Haussmann Cls A $ 2944.46 - 28.23 0.00
Multi Asset Alloc Def N-GACC-GBP £ 1.18 - 0.00 1.02
Ethical Corporate Bond B Inc £ 1.02 - 0.00 3.04
Haussmann Cls C € 2468.28 - 21.53 0.00
Edinburgh Partners Limited (IRL) Multi Asset Alloc Growth N-ACC-GBP £ 1.26 - 0.00 1.12 Marlborough Fd Managers Ltd (1200)F (UK)
CG Asset Management Limited (IRL)
27-31 Melville Street, Edinburgh EH3 7JF Ethical Equity B Acc £ 2.36 - 0.01 2.00
Haussmann Cls D SFr 1290.86 - 11.22 0.00 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
25 Moorgate, London, EC2R 6AY
Asset Management
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Multi Asset Alloc Strat N-ACC-GBP £ 1.23 - 0.00 1.01
Artemis Fund Managers Ltd (1200)F (UK)
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 High Yield Bond B Acc £ 2.73 - 0.01 4.20 www.marlboroughfunds.com
57 St. James's Street, London SW1A 1LD 0800 092 2051
Authorised Inv Funds
FCA Recognised
Capital Gearing Portfolio Inc £ 31518.06 31518.06 27.32 0.53
FCA Recognised
Edinburgh Partners Opportunities Fund PLC
Multi Asset Balanced Inc N-GINC-GBP £ 1.11 - -0.01 4.08
High Yield Bond B Inc £ 0.97 - 0.00 4.20
Authorised Inv Funds
Balanced
Asset Management 200.89 211.73 0.30 0.36
Artemis Capital R ACC 1695.71 1789.40 7.79 1.58 Emerging Opportunities I USD $ $ 1.39 - 0.00 1.35 Multi Asset Balanced Inc N-INC-GBP £ 1.10 - 0.00 3.99
Investment Grade Bond B Acc 178.21 - -0.01 2.04
CG Portfolio Fund Plc Bond Income 50.94 53.79 0.00 3.59
Multi Asset Defensive N-ACC-GBP £ 1.22 - 0.00 1.03 New Capital UCITS Fund PLC (IRL)
Artemis European Growth R Acc 367.26 387.43 1.72 0.82 European Opportunities I EUR € 2.82 - 0.00 1.84
Investment Grade Bond B Inc £ 1.23 - 0.00 2.54 Leconfield House, Curzon Street, London, W1J 5JB
Absolute Return Cls M Inc £ 116.36 116.36 -0.22 1.28 Cautious Inc 93.83 98.88 0.08 1.75
Artemis European Opps R Acc 106.51 112.37 -0.03 0.76 European Opportunities I GBP £ 2.48 - 0.00 1.63 Multi Asset Defensive N-GACC-GBP £ 1.22 - 0.00 1.02 www.newcapitalfunds.com
Sterling Corporate Bond B Acc £ 0.82 - 0.00 2.90
Capital Value Cls V Inc £ 153.19 153.19 0.15 0.45 Defensive A Inc 114.56 114.56 0.08 0.40 FCA Recognised
Artemis Global Emg Mkts I GBP Acc 141.30 - -0.65 - European Opportunities A EUR € 2.77 - 0.00 0.91 Multi Asset Growth Fund N-ACC-GBP £ 1.36 - 0.01 1.06
Sterling Corporate Bond B Inc £ 0.33 - 0.00 2.90 New Capital Asia Value Credit Fund - USD Ord Inc $ 92.00 - 0.05 3.95
Dollar Fund Cls D Inc £ 145.52 145.52 -0.70 1.72 Emerging Markets 340.21 340.21 -0.98 0.99
Artemis Global Emg Mkts I GBP Dist 130.68 - -0.60 - Global Opportunities I USD $ 2.05 - 0.00 1.33 Multi Asset Inc & Growth N-INC-GBP £ 1.12 - 0.00 4.01 Hermes Investment Funds Plc (IRL)
Strategic Bond B Acc £ 1.22 - 0.00 1.31 New Capital Asia Pacific Equity Income Fund - USD Ord Inc. $ 110.70 - 0.44 2.49
Dollar Hedged GBP Inc £ 96.25 96.25 -0.15 1.74 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 ETF Global Growth A 185.06 185.06 0.13 0.14
Artemis Global Energy R Acc 35.85 37.88 0.48 0.38 Global Opportunities I GBP £ 1.52 - 0.00 1.13 Multi Asset Income Fund N-GINC-GBP £ 1.08 - 0.00 4.12 FCA Recognised Strategic Bond B Inc £ 1.21 - 0.00 1.31 New Capital Dynamic European Equity Fund - EUR Ord Inc. € 192.14 - -0.40 2.63
Real Return Cls A Inc £ 187.73 187.73 -0.79 2.27 ETF Commodity A 89.58 89.58 1.02 0.00
Pan European Opportunities I EUR € 1.94 - 0.01 - Multi Asset Income Fund N-INC-GBP £ 1.06 - 0.00 4.16 Hermes Abs Return Credit Fund Class F Acc £ 1.18 1.18 -0.01 0.00
Artemis Global Growth R Acc 268.48 283.17 0.69 0.91 UK Equity B Acc £ 3.24 - 0.01 2.19 New Capital China Equity Fund - USD Ord Acc. $ 180.35 - 2.90 0.00
European Multi-Cap 487.58 487.58 0.25 0.31
Fidelity Asia Fund W-ACC-GBP £ 13.99 - -0.07 0.73 Hermes Abs Return Credit Fund Class F Acc USD € 1.92 1.92 -0.01 0.00
Artemis Global Income R Acc 131.79 139.05 0.27 3.49 UK Equity Absolute Return B Acc £ 1.12 - 0.00 0.00 New Capital Global Value Credit Fund - USD Ord Acc. $ 182.39 - 0.09 0.00
Extra Income 85.60 90.58 -0.22 3.79
Charles Schwab Worldwide Funds Plc (IRL) Multi Asset Open Advent N-ACC-GBP £ 1.39 - 0.00 0.63 Hermes Asia Ex-Japan Equity Fund Class C Acc GBP £ 2.72 2.72 0.00 0.00
Artemis Global Income R Inc 97.96 103.35 0.20 3.59 UK Equity Income B Acc £ 2.69 - 0.00 4.37 New Capital Global Equity Conviction Fund - USD Ord Acc. $ 129.36 - 0.14 0.00
Regulated Electric & General (1000)F (UK) Far East Growth A Inc 253.22 253.22 -0.30 1.20
Stuart House St.John's Street Peterborough PE1 5DD Multi Asset Open Defen N-ACC-GBP £ 1.22 - 0.00 1.05 Hermes Asia Ex-Japan Equity Fund Class C Acc USD € 4.82 4.82 0.01 0.00
Artemis Global select R Acc 106.43 112.24 -0.15 0.00 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.42 UK Equity Income B Inc £ 1.86 - 0.00 4.49 New Capital Strategic Portfolio UCITS Fund - USD Inst Acc. $ 121.65 - 0.14 0.00
Orders & Enquiries: 0845 850 0255 Global 250.15 263.59 0.58 0.00
Multi Asset Open Defen N-GACC-GBP £ 1.23 - 0.00 1.03 Hermes Europe Ex-UK Equity Fund Class F Acc £ 2.19 2.19 0.00 0.00
Artemis High Income R Inc 78.53 83.40 -0.01 5.39 Authorised Inv Funds UK Opportunities B Acc £ 2.16 - 0.02 1.68 New Capital Wealthy Nations Bond Fund - USD Inst Inc. $ 112.57 - 0.08 4.48
Global Bond Inc 149.43 158.00 0.03 3.21
Authorised Corporate Director - Carvetian Capital Management Hermes Europe Ex-UK Equity Fund Class F Acc EUR € 4.20 4.20 0.01 0.00
Artemis Income R Acc 447.42 473.60 0.97 3.58 Multi Asset Open Growth N-ACC-GBP £ 1.34 - 0.00 1.23
UK Smaller Companies B Acc £ 4.03 - 0.03 1.41 New Capital Swiss Select Equity Fund - CHF Ord Acc.SFr 171.97 - -0.29 0.00
Chartered Asset Management Pte Ltd Electric&General Net Income A 185.60 - 0.30 1.65 High Yield Fixed Interest 74.42 78.94 -0.02 4.58
Multi Asset Open Strat N-ACC-GBP £ 1.30 - 0.01 1.29 Hermes European Alpha Equity Fund Class F Acc £ 1.79 1.79 -0.01 0.00
Artemis Income R Inc 236.30 250.12 0.52 3.69 Other International Funds New Capital US Growth Fund - USD Ord Acc. $ 284.13 - -0.35 0.00
Multi Cap Income A Inc 163.64 163.64 0.44 4.19
CAM-GTF Limited $ 322821.06 322821.06 -13770.34 0.00 Multi Asset Strategic N-ACC-GBP £ 1.32 - 0.01 1.22 Hermes European Alpha Equity Fund Class F Dis £ 1.70 1.70 0.00 1.16
Artemis Monthly Dist R Inc 71.54 75.76 0.11 4.16 New Capital All Weather Fund - EUR Inst Acc € 100.21 - 0.13 0.00
Kames Capital Investment Portfolios ICVC (UK) Nano-Cap Growth A Acc 165.0023 181.7000 153.6769 0.00
Artemis Pan-Euro Abs Ret GBP 123.89 - -0.09 - CAM GTi Limited $ 662.95 - -1.93 0.00 Ennismore Smaller Cos Plc (IRL) Open World Fund N-ACC-GBP £ 1.64 - 0.01 0.36 Hermes European Alpha Equity Fund Class F Acc EUR € 3.54 3.54 -0.01 0.00

Asset Management
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA New Capital Dynamic UK Equity Fund - GBP Inst Acc. £ 114.14 - -0.28 0.00
5 Kensington Church St, London W8 4LD 020 7368 4220 Special Situations A Acc 1741.93 1843.31 9.99 0.26

Asset Management Asset Management

Raffles-Asia Investment Company $ 1.72 1.72 0.04 1.15 Special Situations Fund W-ACC-GBP £ 38.72 - 0.24 1.59 Hermes Global Emerging Markets Fund Class F Acc £ 2.02 2.02 -0.02 0.00 0800 358 3009 www.kamescapital.com
Artemis Strategic Assets R Acc 88.49 93.63 0.16 0.00 FCA Recognised
Authorised Funds UK Multi-Cap Growth A Inc 358.46 379.32 2.23 0.19 New Capital US Small Cap Growth Fund - USD Inst Acc $ 136.78 - -0.36 0.00
Ennismore European Smlr Cos NAV £ 126.03 - -0.01 0.00 Sterling Core Plus Bond GMACC £ 12.10 - 0.00 2.45 Hermes Global Emerging Markets Fund Class F Acc USD € 4.19 4.19 -0.04 0.00
Artemis Strategic Bond R M Acc 95.75 101.53 0.00 3.26 Property Income B Acc 132.67 132.67 -0.07 4.39 New Capital Global Alpha Fund - USD Ord Inc $ 106.29 - 0.14 0.32
UK Micro Cap Growth A 745.45 788.84 1.25 0.09
Ennismore European Smlr Cos NAV € 143.16 - 0.14 0.00 Sterling Core Plus Red Dur £ 11.29 - 0.01 1.91 Hermes Global Equity Fund Class F Acc £ 2.30 2.30 0.01 0.00
Artemis Strategic Bond R M Inc 56.91 60.35 0.00 3.32 Property Income B Inc 110.03 110.03 -0.04 4.50
Cheyne Capital Management (UK) LLP US Multi-Cap Income 459.03 459.03 2.13 0.50
Other International Funds Strategic Bond Fund Y-ACC-GBP £ 1.19 - 0.00 2.16 Hermes Global Equity Fund Class R Acc USD € 4.94 4.94 0.02 0.00
Artemis Strategic Bond R Q Acc 95.93 101.72 0.01 3.26 MFM - Third Party Funds
Cheyne European Event Driven Fund (M) € 140.37 - -3.12 - Hermes Global ESG Equity Fund Class F Acc £ 1.74 1.74 0.00 0.00
Artemis Strategic Bond R Q Inc 57.04 60.48 0.01 3.32 Strategic Bond Fund Y-GACC-GBP £ 1.22 - 0.00 3.03 Junior Oils 81.29 86.02 0.26 0.00
Ennismore European Smlr Cos Hedge Fd
price updated (D) daily, (W) weekly, (M) monthly
Other International Funds
Kames Capital VCIC (IRL)
Strategic Bond Fund Y-GINC-GBP £ 1.24 - -0.01 2.70 Hermes Global High Yield Credit Fund Class F Acc £ 1.46 1.46 0.00 0.00 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Junior Gold C Acc 38.63 38.63 -0.14 0.00
Artemis UK Select Fund Class R Acc 580.37 613.17 3.32 1.13
NAV € 524.85 - 3.96 0.00 FCA Recognised
Strategic Bond Fund Y-INC-GBP £ 1.21 - 0.00 2.13 Hermes Global High Yield Credit Fund Class F Acc EUR € 3.12 3.12 0.00 0.00 MFM Bowland 253.81 274.39 0.65 0.66
Artemis UK Smaller Cos R Acc 1729.09 1851.43 18.51 1.25
Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Absolute Return Bond B GBP Acc 1112.34 - -0.32 1.23
Target 2020 A-ACC-GBP £ 0.66 - 0.00 0.45 Hermes Global Small Cap Fund Class F Acc £ 1.58 1.58 0.00 0.00 MFM Hathaway Inc 138.44 144.96 1.68 1.41
Artemis UK Special Sits R Acc 619.34 656.56 5.72 1.52 Stuart House, St John's Street, Peterborough, PE1 5DD
Eq Market Neutral B Acc 925.91 - 0.64 0.00 Northwest Investment Management (HK) Ltd
Dealing & Client Services 0345 850 8818 Equinox Fund Mgmt (Guernsey) Limited (GSY) Target 2025 A-ACC-GBP £ 1.66 - 0.01 0.51 Hermes Global Small Cap Fund Class F Acc USD € 2.17 2.17 -0.01 0.00
Artemis US Abs Ret I Acc 112.56 - 0.14 0.00 MFM Techinvest Special Situations Acc 204.32 204.32 2.21 0.00 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Authorised Inv Funds Regulated High Yield Global Bond A GBP Inc 514.04 - 0.33 3.24
Hermes Impact Opportunities Equity Fund F $ 2.02 - -0.01 - Other International Funds
Artemis US Equity I Acc 180.56 - 0.81 0.15 Target 2030 A-ACC-GBP £ 1.88 - 0.01 0.57 MFM Techinvest Technology Acc 499.48 499.48 17.53 0.00
Consistent UT Inc 53.38 54.15 0.09 4.74 Equinox Russian Opportunities Fund Limited $ 184.92 - -9.12 0.00 High Yield Global Bond B GBP Inc 1081.26 - 0.71 3.89 Northwest China Opps Class T $ $ 3293.08 - -16.15 0.00
UK Invest Grade Long Credit GACC £ 115.20 - 0.00 2.59 Hermes Impact Opportunities Equity Fund F £ 1.01 - 0.00 - MFM UK Primary Opportunities A Inc 432.47 432.47 0.63 1.25
Artemis US Ex Alpha I Acc 194.57 - 1.08 0.00 Consistent UT Acc 137.60 139.70 0.20 4.74
Investment Grade Global Bd A GBP Inc 561.12 - -0.77 2.12 Northwest Fund Class T $ $ 2447.06 - -28.57 0.00
UK Opportunities Fund W-ACC-GBP 252.40 - 2.00 1.26 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.05 1.05 0.00 0.00
Artemis US Extended Alpha I Hedged Acc £ 1.39 - 0.00 0.00 Practical Investment Inc 242.10 259.00 0.70 3.03
Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03 0.00 Northwest Warrant Acc USD $ 1969.35 - -444.40 0.00
Euronova Asset Management UK LLP (CYM)
UK Opportunities Fund W-INC-GBP 141.40 - 1.10 1.31 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.14 1.14 0.00 0.00
Artemis US Select I Acc 188.69 - 0.73 0.08 Practical Investment Acc 1281.00 1371.00 3.00 3.03 Regulated
Kames Global Equity Income B GBP Acc 1684.47 - 1.30 0.00 Marwyn Asset Management Limited (CYM)
Smaller Cos Cls One Shares € 44.29 - 0.22 0.00 UK Select Fund W-ACC-GBP £ 3.04 - 0.01 1.70 Hermes SDG Engagement Equity Fund F $ 2.13 - -0.01 - Regulated
Artemis US Select I Hedged Acc £ 1.44 - 0.00 0.08
Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19
UK Smaller Companies W-ACC-GBP £ 2.64 - 0.02 1.33 Hermes SDG Engagement Equity Fund F £ 1.05 - 0.00 - Marwyn Value Investors £ 393.49 - -18.63 0.00
Artemis US Select I Inc 167.50 - 0.65 0.08 Smaller Cos Cls Two Shares € 29.93 - 0.13 0.00
DAVIS Funds SICAV (LUX) Kames Global Diversified Growth Fund - B Acc EUR € 11.48 - -0.01 0.00
Smaller Cos Cls Three Shares € 15.07 - 0.07 0.00 WealthBuilder Fund N-ACC-GBP £ 1.61 - 0.00 1.26 Hermes US All Cap Equity Class F Stg £ Acc £ 1.47 1.47 0.00 0.00
Artemis US Smlr Cos I Acc 206.51 - 0.72 0.00 Regulated
Kames Global Equity Market Neutral Fund - B Acc GBP £ 10.29 - -0.02 0.00
Davis Value A $ 54.39 - 0.12 0.00 Institutional OEIC Funds Hermes US All Cap Equity Class F Acc USD € 2.18 2.18 0.00 0.00
Smaller Cos Cls Four Shares € 19.35 - 0.09 0.00 McInroy & Wood Portfolios Limited (UK)
America £ 5.66 - 0.03 0.61 Global Sustainable Equity B Acc GBP £ 14.54 - -0.01 0.00
Davis Global A $ 42.05 - 0.13 0.00 Hermes US SMID Equity Fund Class F Acc £ 2.40 2.40 0.00 0.00 Easter Alderston, Haddington, EH41 3SF 01620 825867
Global Sustainable Equity C Acc GBP £ 14.62 - -0.01 0.00 Authorised Inv Funds
Emerging Markets £ 4.86 - -0.04 0.71
Hermes US SMID Equity Fund Class F Acc USD € 4.19 4.19 0.01 0.00 Oasis Crescent Management Company Ltd
Balanced Fund Personal Class Units 4842.00 - 7.50 1.41
Europe (ex-UK) Fund ACC-GBP £ 5.39 - -0.02 1.11 Kames Absolute Return Bond Global Fund - B Acc GBP £ 10.32 - 0.00 0.00 Other International Funds
Income Fund Personal Class Units 2624.80 - 0.60 2.61 Oasis Crescent Equity Fund R 10.58 - 0.06 0.00
Fidelity Pre-Retirement Bond Fund £ 137.00 - 0.00 2.63 Short Dated High Yld Bd B Acc GBP £ 10.07 - 0.00 -
Hermes Property Unit Trust (UK) Emerging Markets Fund Personal Class Units 2145.50 - -15.70 1.65
Global Focus £ 4.36 - 0.01 0.59 Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.10 - 0.01 -
Property & Other UK Unit Trusts
Smaller Companies Fund Personal Class Units 5426.40 - 9.10 0.98
Ashmore Investment Management Limited (LUX) Index Linked Bond £ 3.17 - 0.00 0.22 Property £ 6.51 6.99 0.01 2.79 Strategic Global Bond A GBP Inc 1114.70 - -0.67 0.38 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
2 rue Albert Borschette L-1246 Luxembourg Regulated
FCA Recognised Eurobank Fund Management Company (Luxembourg) S.A. Index Linked Bond Gross £ 3.86 - 0.00 0.22 Strategic Global Bond B GBP Inc 632.37 - -0.36 1.04
Regulated Oasis Crescent Global Investment Fund (Ireland) plc
Ashmore SICAV Emerging Market Debt Fund $ 96.36 - 0.08 5.43 Dodge & Cox Worldwide Funds (IRL)
(LF) Absolute Return € 1.37 - 0.00 0.00 Japan £ 3.22 - 0.01 0.40 Emerging Markets Managed Accounts PLC (IRL) Oasis Crescent Global Short Term Income Fund I - Class A Dist $ - - - -
6 Duke Street,St.James,London SW1Y 6BN
INDIA VALUE INVESTMENTS LIMITED (INVIL) emma@milltrust.com, +44(0)20 8123 8369, www.milltrust.com
Ashmore SICAV Emerging Market Frontier Equity Fund $ 187.29 - -2.75 0.63 www.dodgeandcox.worldwide.com 020 3713 7664 Long Bond £ 0.56 - 0.00 2.11 Oasis Crescent Global Equity Fund $ 31.41 - 0.06 0.69
(LF) Eq Emerging Europe € 0.89 - 0.00 0.00 www.invil.mu Regulated
FCA Recognised Kleinwort Hambros Bank Limited (UK)
Ashmore SICAV Emerging Market Total Return Fund $ 86.73 - -0.16 5.22 Other International Funds
Dodge & Cox Worldwide Funds plc - Global Bond Fund Long Bond Gross £ 0.97 - 0.00 2.09 5TH Floor, 8 St James's Square, London, SW1Y 4JU Milltrust ASEAN A $ 118.11 - 1.81 0.00 Oasis Crescent Variable Balanced Fund £ 10.57 - -0.01 0.00
(LF) Eq Mena Fund € 12.78 - 0.15 0.00
NAV £ 8.41 - -0.06 0.00 Dealing and enquiries: 033 0024 0785
Ashmore SICAV Global Small Cap Equity Fund $ 173.79 - -2.77 0.58 EUR Accumulating Class € 12.41 - -0.02 0.00 Milltrust India A $ 172.26 - 1.01 0.00 OasisCresGl Income Class A $ 10.50 - 0.00 2.70
(LF) Greek Government Bond € 29.02 - -0.03 0.00 Long Bond Fund Gross Inc £ 12.70 - -0.08 2.16 Authorised Inv Funds
EM Mkts Corp.Debt USD F $ 95.75 - -0.01 6.16 EUR Accumulating Class (H) € 10.15 - -0.02 0.00 Unit Trust Manager/ACD - Host Capital
Pacific (Ex Japan) £ 5.24 - -0.03 1.42 Milltrust Latin America A $ 109.22 - -1.23 0.00 OasisCresGl LowBal D ($) Dist $ 12.31 - 0.03 0.00
(LF) Greek Corporate Bond € 14.83 - 0.00 0.00
HC Kleinwort Hambros Growth A Acc 206.24 - 0.07 1.36
EM Mkts Loc.Ccy Bd USD F $ 85.11 - -0.49 5.36 EUR Distributing Class € 10.81 - -0.01 3.69
Pan European £ 3.58 - 0.00 1.79 Intrinsic Value Investors (IVI) LLP (IRL) Milltrust Keywise China Fund $ 162.05 - 0.31 0.00 OasisCresGl Med Eq Bal A ($) Dist $ 12.98 - 0.03 0.60
(LF) FOF Dynamic Fixed Inc € 11.95 - -0.04 0.00 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 HC Kleinwort Hambros Growth A Inc 187.43 - 0.07 1.38
EM Short Duration Fund Acc USD $ 135.18 - 0.14 0.00 EUR Distributing Class (H) € 8.83 - -0.02 3.61 FCA Recognised Milltrust SEDCO MENA Fund (Class A) * $ 102.79 - 0.32 0.00 Oasis Crescent Gbl Property Eqty $ 9.62 - -0.04 1.88
(LF) FOF Real Estate € 15.72 - -0.11 0.00 Select Emerging Markets Equities £ 1.96 - -0.01 0.69
HC Kleinwort Hambros Equity Income A Inc 117.16 - 0.09 3.06
GBP Distributing Class £ 11.58 - -0.04 3.66 IVI European Fund EUR € 22.72 - -0.05 0.00
Select Global Equities £ 4.25 - 0.01 0.97
HC Kleinwort Hambros Equity Income A Acc 192.38 - 0.16 4.00
GBP Distributing Class (H) £ 9.12 - -0.02 3.19 IVI European Fund GBP £ 26.76 - -0.10 0.00
South East Asia £ 5.84 - -0.04 1.51
HC Kleinwort Hambros Multi Asset Balanced A Acc 158.17 - -0.08 0.81 Milltrust International Managed Investments ICAV (IRL)
USD Accumulating Class $ 10.68 - -0.03 0.00 mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com
Sterling Core Plus Bond Gr Accum £ 2.46 - 0.00 2.49
Dodge & Cox Worldwide Funds plc-Global Stock Fund HC Kleinwort Hambros Multi Asset Balanced A Inc 149.48 - -0.08 0.81 Regulated
Sterling Core Plus Bond Inc £ 1.50 - 0.00 2.53 Invesco Global Asset Management Ltd (IRL) MAI - Buy & Lease (Australia) A$ 99.42 - -0.58 -
USD Accumulating Share Class $ 21.98 - 0.04 0.00 HC Kleinwort Hambros Fixed Income A Acc 129.15 - -0.08 3.44
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
UK £ 4.41 - 0.01 2.11 MAI - Buy & Lease (New Zealand)NZ$ 98.95 - -0.49 0.00
GBP Accumulating Share Class £ 26.67 - 0.02 0.00 FCA Recognised HC Kleinwort Hambros Fixed Income A Inc 109.18 - -0.07 3.44
UK Aggreg Bond Gr Accum £ 2.06 - 0.00 2.34 Invesco Stlg Bd A QD F £ 2.67 - 0.00 3.03 British Innovation Fund £ 98.71 - -1.03 -
GBP Distributing Share class £ 19.06 - 0.02 0.71
UK Corporate Bond £ 1.29 - 0.00 2.85 Invesco Asian Equity A $ 9.44 - -0.08 0.00 EICM South Asia Hospitality 1 $ 101.98 - 4.50 -
EUR Accumulating Share Class € 27.66 - 0.08 0.00
24 FINANCIAL TIMES Wednesday 16 May 2018

MANAGED FUNDS SERVICE

Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield

Pictet-Emerging Europe-I EUR F € 377.83 - -0.32 0.00 GEM Income I USD $ 12.41 - 0.00 0.00 RobecoSAM S.Water/N € 204.83 - -0.21 0.00 Outstanding British Cos B Acc X F 331.05 - 1.92 1.42 Data Provided by
Pictet-Emerging Markets-I USD F $ 684.59 - -6.66 0.00 Global Convertible I USD $ 13.37 13.37 0.01 0.00 UK Smaller Cos A Inc X F 596.20 - 1.12 1.13
Toscafund Asset Management LLP
Pictet-Emerging Markets Index-I USD F $ 317.01 - 1.20 0.00 Global Insurance I GBP £ 5.94 - -0.05 0.00 www.toscafund.com UK Smaller Cos B Inc X F 584.55 - 1.11 1.78
Other International Funds
Pictet-Emerging Corporate Bonds I USD $ 123.11 - 0.48 0.00 Global Technology I USD $ 44.41 - -0.17 0.00 UK Income A Acc X F 315.11 - 1.76 4.11

Pictet-Emerging Markets High Dividend I USD $ 129.33 - -1.06 0.00 Healthcare Blue Chip Fund I USD Acc $ 12.18 12.18 0.13 0.00
Tosca A USD $ 394.06 - 14.25 -
UK Income A Inc X F 255.74 - 1.43 4.22
www.morningstar.co.uk
Rubrics Global UCITS Funds Plc Tosca Mid Cap GBP £ 304.47 - 29.20 -
(IRL) Data as shown is for information purposes only. No
Pictet-Emerging Markets Sust Eq I USD $ 111.68 - 0.12 0.00 Healthcare Opps I USD $ 44.57 - 0.27 0.00 www.rubricsam.com UK Income B Acc X F 340.87 - 1.91 4.09 offer is made by Morningstar or this publication.
Odey Asset Management LLP (UK) Robeco Asset Management (LUX) Tosca Opportunity B USD $ 448.02 - 52.22 -
65 Gresham Street, London, EC2V 7NQ Weena 850, 3014 DA Rotterdam, The Netherlands Regulated
Pictet-EUR Bonds-I F € 580.27 - -1.57 0.00 Income Opportunities B2 I GBP Acc £ 2.28 2.28 0.00 0.00 UK Income B Inc X F 276.78 - 1.55 4.20
Order Desk and Enquiries: 0345 300 2106 www.robeco.com/contact Rubrics Emerging Markets Fixed Income UCITS Fund $ 135.32 - -0.16 0.00 Pegasus Fund Ltd A-1 GBP £ 73.01 - 4.50 0.00
Authorised Inv Funds Pictet-EUR Corporate Bonds-I F € 210.42 - -0.72 0.00 Japan Alpha I JPY ¥ 267.76 267.76 1.08 0.00 FCA Recognised
Authorised Corporate Director - Link Fund Solutions Rubrics Global Credit UCITS Fund $ 15.87 - 0.00 0.00
Pictet-EUR Government Bonds I EUR € 163.43 - -0.42 0.00 Japan I JPY ¥ 2687.38 - 10.83 0.00 Asia-Pacific Equities (EUR) € 169.40 - -0.59 0.00
LF Odey Continental European GBP R Acc 1020.73 - -5.92 0.60 Rubrics Global Fixed Income UCITS Fund $ 161.86 - -0.02 0.00 Value Partners Hong Kong Limited (IRL)
Pictet-EUR High Yield-I F € 274.00 - 0.02 0.00 North American I USD $ 24.68 24.68 -0.02 0.00 BP US Premium Equities (EUR) € 231.79 - 0.15 0.00 www.valuepartners-group.com, fis@vp.com.hk
LF Odey Opus GBP R Inc 4533.17 - -3.25 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 137.50 - -0.04 0.00 UK Absolute Equity I GBP £ 21.32 21.32 0.09 0.00 BP US Premium Equities (USD) $ 270.16 - 0.22 0.00
Q Rubrics India Fixed Income UCITS Fund $ 10.78 - -0.10 0.00 Regulated Guide to Data
LF Odey Absolute Return GBP R 295.28 - 1.03 0.00 Rubrics India Fixed Income UCITS Fund $ 92.61 - -0.59 0.00 Value Partners Asia Dividend Stocks Fund A USD $ 7.86 - 0.05 0.00
Pictet-EUR Short Term HY I EUR € 127.13 - 0.37 0.00 UK Val Opp I GBP Acc £ 12.33 12.33 0.03 0.00 Chinese Equities (EUR) € 104.99 - -0.23 0.00
LF Odey Portfolio Fund GBP R Inc 161.84 - 0.80 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 15.73 - -0.02 0.00 The fund prices quoted on these pages are supplied by
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 101.48 - 0.00 0.00 Em Stars Equities (EUR) € 221.97 - -1.70 0.00 the operator of the relevant fund. Details of funds
Value Partners Classic Equity Fund CHF HedgedSFr 15.49 - -0.02 0.00 published on these pages, including prices, are for the
Emerging Markets Equities (EUR) € 196.85 - -1.22 0.00 Scottish Friendly Asset Managers Ltd (UK) TreeTop Asset Management S.A. (LUX)
purpose of information only and should only be used
Pictet-Euroland Index IS EUR € 161.14 - 0.14 0.00 Regulated
Polar Capital LLP (CYM) Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 Value Partners Classic Equity Fund EUR Hedged € 15.77 - -0.02 0.00 as a guide. The Financial Times Limited makes no
Odey Asset Management LLP (CYM)
Pictet-Europe Index-I EUR F € 196.45 - 0.06 0.00 Regulated Glob.Consumer Trends Equities (EUR) € 204.20 - -0.49 0.00 Authorised Inv Funds TreeTop Convertible Sicav representation as to their accuracy or completeness
Regulated Value Partners Classic Equity Fund GBP Hedged £ 16.42 - -0.02 0.00 and they should not be relied upon when making an
European Forager A EUR € 189.87 - 5.74 0.00 Managed Growth ♦ 292.50 - 0.70 0.00 International A € 314.37 - 1.02 0.00
Pictet-European Equity Selection-I EUR F € 800.42 - 3.32 0.00 High Yield Bonds (EUR) € 143.87 - 0.07 0.00 investment decision.
OEI Mac Inc GBP A £ 167.72 - 8.16 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 19.22 - 0.03 0.00
UK Growth ♦ 330.70 - 0.70 0.00 International B $ 422.40 - 1.38 0.00
Pictet-European Sust Eq-I EUR F € 271.48 - 0.01 0.00 New World Financials (EUR) € 69.83 - -0.45 0.00 The sale of interests in the funds listed on these pages
OEI Mac Inc GBP B £ 97.43 - 6.11 0.00 Value Partners Classic Equity USD Unhedged $ 19.52 - -0.03 0.00 may, in certain jurisdictions, be restricted by law and
International C £ 132.59 - 0.43 2.65
Pictet-Global Bds Fundamental I USD $ 127.08 - -0.57 0.00 the funds will not necessarily be available to persons
OEI MAC Inc USD $ 894.04 - 43.34 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
Value Partners Global Emerging Market Bond Fund USD A Acc Unhedged $ 10.25 - 0.07 0.00 in all jurisdictions in which the publication circulates.
Regulated International D € 275.48 - 0.89 2.56
Pictet-Global Bonds-I EUR € 163.48 - -0.57 0.00 Persons in any doubt should take appropriate
Royal London Unit Managers Ltd. (1200) F
Odey European Inc EUR € 387.31 - 19.26 0.00
Monument Growth 08/05/2018 £ 524.78 530.63 3.36 3.15
(UK)
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777
Slater Investments Ltd TreeTop Global Sicav Value Partners Global Emerging Market Equity Fund USD V Unhedged $ 11.08 - 0.08 - professional advice. Data collated by Morningstar. For
Pictet-Global Defensive Equities I USD $ 173.39 - 0.16 0.00 other queries contact reader.enquiries@ft.com +44
Odey European Inc GBP A £ 155.25 - 7.87 0.00 Authorised Inv Funds Global Opp.A € 170.63 - -0.85 0.00 Value Partners Greater China Equity Fund USD A (Acc) Unhedged $ 12.24 - -0.14 0.00 (0)207 873 4211.
Odey European Inc GBP B £ 88.01 - 4.46 0.00 Pictet-Global Emerging Debt-I USD F $ 397.22 - 1.51 0.00 Royal London Sustainable Diversified A Inc £ 1.94 - 0.01 1.09 Global Opp.B $ 179.29 - -0.90 0.00 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 13.19 - 0.14 0.00 The fund prices published in this edition along with
Pictet-Global Env.Opport-I EUR € 206.66 - -0.58 0.00 Prusik Investment Management LLP (IRL) additional information are also available on the
Odey European Inc USD $ 185.98 - 9.38 0.00 Royal London Sustainable World A Inc 240.10 - 0.20 0.32 Global Opp.C £ 241.81 - -1.93 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 13.29 - 0.13 0.00
Enquiries - 0207 493 1331 Financial Times website, www.ft.com/funds. The
Pictet-Global Megatrend Selection-I USD F $ 302.53 - 0.19 0.00 Regulated Slater Investments Ltd (UK) funds published on these pages are grouped together
Giano Capital EUR Inc € 5010.92 - 238.02 0.00 Royal London Corporate Bond Mth Income 90.89 92.27 -0.03 3.67 Sequoia Equity A € 160.76 - 0.53 0.00
www.slaterinvestments.com; Tel: 0207 220 9460 by fund management company.
Prusik Asian Equity Income B Dist $ 206.14 - -1.12 3.35
Pictet-Global Sust.Credit HI EUR € 148.08 - -0.18 0.00 Royal London European Growth Trust 156.20 158.60 -0.50 0.00 Sequoia Equity B $ 177.10 - 0.54 0.00
FCA Recognised
Prices are in pence unless otherwise indicated. The
Prusik Asia A $ 286.30 - -1.04 0.00 Waverton Investment Funds Plc (1600)F (IRL)
change, if shown, is the change on the previously
Pictet-Greater China-I USD F $ 707.91 - -2.95 0.00 Royal London Sustainable Leaders A Inc 589.30 - -0.30 1.12 Slater Growth 519.40 549.27 -10.24 0.00 Sequoia Equity C £ 208.61 - -0.01 2.93 waverton.investments@citi.com quoted figure (not all funds update prices daily). Those
Odey Asset Management LLP (IRL)
Prusik Asian Smaller Cos A $ 163.82 - -1.42 0.00
Pictet-Health-I USD $ 288.53 - 2.50 0.00 Slater Income A Inc 167.84 167.84 0.67 0.00 FCA Recognised designated $ with no prefix refer to US dollars. Yield
FCA Recognised Royal London UK Growth Trust 589.60 598.60 1.70 1.53
Waverton Asia Pacific A USD $ 23.95 - -0.03 0.81 percentage figures (in Tuesday to Saturday papers)
Odey Pan European EUR R € 341.14 - -1.20 0.00 Pictet-High Dividend Sel I EUR F € 168.29 - -0.27 0.00 Slater Recovery 237.71 251.38 -9.52 0.00 allow for buying expenses. Prices of certain older
Royal London UK Income With Growth Trust 229.50 233.00 0.40 4.26
Waverton Global Equity Fund A GBP £ 19.96 - -0.01 0.25 insurance linked plans might be subject to capital
Odey Allegra International EUR O € 187.00 - 1.32 0.00 Pictet-India Index I USD $ 123.59 - -0.85 0.00 Slater Artorius 205.81 205.81 2.12 0.24 gains tax on sales.
Purisima Investment Fds (UK) (1200)F (UK) Royal London US Growth Trust 224.20 227.60 1.40 0.00
65 Gresham Street, London, EC2V 7NQ Waverton Global Strategic Bond Fund A USD $ 8.42 - 0.00 5.15
Odey Allegra Developed Markets USD I $ 174.16 - 2.29 0.00 Pictet-Indian Equities-I USD F $ 606.40 - -1.44 0.00 Additional Funds Available Guide to pricing of Authorised Investment Funds:
Order Desk and Enquiries: 0345 922 0044 (compiled with the assistance of the IMA. The
Please see www.royallondon.com for details Waverton UK Fund A GBP £ 14.05 - 0.02 2.02
Odey European Focus Fund € 20.02 - -0.05 0.00 Pictet-Japan Index-I JPY F ¥ 19325.23 - -7.16 0.00 Authorised Inv Funds Investment Management Association, 65 Kingsway,
Authorised Corporate Director - Link Fund Solutions Standard Life Wealth (JER)
Waverton Equity Fund A GBP £ 19.56 - 0.13 0.00 London WC2B 6TD.
Odey Giano European Fund EUR R € 127.20 - 0.81 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 12360.24 - -1.64 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Tel: +44 (0)20 7831 0898.)
Global Total Fd PCG A 248.64 - 0.30 0.53
Ruffer LLP (1000)F (UK) FCA Recognised Troy Asset Mgt (1200) (UK) Waverton Sterling Bond Fund A GBP £ 9.29 - -0.02 4.26
Odey Odyssey USD I $ 91.52 - -0.11 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 17650.94 - -7.54 0.00 65 Gresham Street, London, EC2V 7NQ OEIC: Open-Ended Investment Company. Similar to a
Global Total Fd PCG B 246.60 - 0.29 0.30 65 Gresham Street, London, EC2V 7NQ Standard Life Offshore Strategy Fund Limited
Order Desk and Enquiries: 0345 608 0950 unit trust but using a company rather than a trust
Odey Swan Fund EUR I € 45.28 - 0.37 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 135.47 - -1.57 0.00 Order Desk and Enquiries: 0345 601 9610 Bridge Fund £ 1.8909 - 0.0038 1.94 structure.
Global Total Fd PCG INT 243.59 - 0.29 0.06 Authorised Inv Funds Authorised Inv Funds
Odey Absolute Return Focus Fund $ 92.75 - 6.63 0.00 Pictet-Multi Asset Global Opportunities-I EUR € 122.65 - -0.11 0.00 Authorised Corporate Director - Link Fund Solutions Global Equity Fund £ 2.4008 - 0.0070 0.84 Authorised Corporate Director - Link Fund Solutions WA Fixed Income Fund Plc (IRL) Different share classes are issued to reflect a different
Trojan Investment Funds Regulated currency, charging structure or type of holder.
Pictet-Nutrition-I EUR € 218.02 - -0.44 0.00 LF Ruffer European C Acc 589.48 - 4.03 0.30 Global Fixed Interest Fund £ 0.9754 - -0.0003 4.18
Spectrum Fund O Acc 218.89 - 0.29 0.64 European Multi-Sector € 115.99 - -0.38 3.49
Purisima Investment Fds (CI) Ltd (JER) Selling price: Also called bid price. The price at which
Pictet-Pacific Ex Japan Index-I USD F $ 452.24 - 3.79 0.00 LF Ruffer European C Inc 108.74 - 0.74 0.61 Income Fund £ 0.5741 - 0.0008 3.25
Odey Wealth Management (CI) Ltd (IRL) Regulated units in a unit trust are sold by investors.
Spectrum Fund O Inc 210.30 - 0.27 0.64
www.odey.com/prices Pictet-Premium Brands-I EUR F € 183.13 - -0.21 0.00 PCG B X 218.08 - 0.11 0.00 LF Ruffer European O Acc 579.38 - 3.93 0.00 Sterling Fixed Interest Fund £ 0.8575 - -0.0001 3.50 Buying price: Also called offer price. The price at
FCA Recognised Spectrum Income Fund O Acc 118.15 - 0.10 2.89
Yapi Kredi Asset Management (TUR) which units in a unit trust are bought by investors.
Pictet-Russia Index I USD $ 77.75 - 0.48 0.00 PCG C X 214.14 - 0.11 0.00 LF Ruffer Equity & General C Acc 459.96 - 3.94 0.04 UK Equity Fund £ 2.3027 - 0.0057 2.87
Odey Opportunity EUR I € 242.04 - 0.74 0.00 Includes manager’s initial charge.
Spectrum Income Fund O Inc 108.91 - 0.09 2.96 www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48
Pictet-Russian Equities-I USD F $ 75.90 - -0.05 0.00 LF Ruffer Equity & General C Inc 424.06 - 3.63 0.04 Other International Funds Single price: Based on a mid-market valuation of the
Trojan Ethical Income O Acc 117.83 - -0.33 3.06
LF Ruffer Equity & General O Acc 452.11 - 3.85 0.00 Eurobond Fund TRY 0.113254 - 0.001256 - underlying investments. The buying and selling price
Pictet-Security-I USD F $ 262.77 - -0.61 0.00 for shares of an OEIC and units of a single priced unit
Trojan Ethical Income O Inc 110.82 - -0.31 3.15
Omnia Fund Ltd LF Ruffer Equity & General O Inc 419.48 - 3.57 0.00 Koc Affiliate and Equity Fund TRY 0.881498 - 0.769500 - trust are the same.
Other International Funds Pictet-Select-Callisto I EUR € 102.93 - 0.08 0.00
Trojan Fund O Acc 297.67 - -0.09 0.40
LF Ruffer Gold C Acc 154.38 - 4.27 0.08 DPM Bonds and Bills Fund (FX) $ 1.017170 - 0.905172 0.00 Treatment of manager’s periodic capital charge:
Estimated NAV $ 996.25 - 40.60 0.00 Pictet-Small Cap Europe-I EUR F € 1415.21 - -5.20 0.00 The letter C denotes that the trust deducts all or part
Trojan Fund O Inc 244.73 - -0.07 0.41
LF Ruffer Gold C Inc 93.44 - 2.59 0.13 of the manager’s/operator’s periodic charge from
Pictet-ST Emerg Local Currency Debt-I USD F $ 106.46 - -0.12 0.00 capital, contact the manager/operator for full details
Trojan Global Equity O Acc 302.89 - 0.55 0.67
LF Ruffer Gold O Acc 151.69 - 4.19 0.00 of the effect of this course of action.
Pictet-ST.MoneyMkt-I € 139.27 - 0.00 0.00
Ram Active Investments SA Stenham Asset Management Inc Trojan Global Equity O Inc 253.39 - 0.46 0.68
LF Ruffer Japanese C Inc 117.94 - 0.38 0.25 www.stenhamassetmanagement.com Exit Charges: The letter E denotes that an exit charge
Pictet-ST.MoneyMkt JPY I USD ¥ 101074.89 - -2.30 0.00 www.ram-ai.com
Trojan Global Income O Acc 103.68 - -0.02 3.03 may be made when you sell units, contact the
Other International Funds Other International Funds
LF Ruffer Japanese C Acc 251.07 - 0.81 0.23 manager/operator for full details.
Pictet-ST.MoneyMkt-ICHF SFr 121.76 - -0.01 0.00 Stenham Credit Opportunities A Class USD $ 116.19 - -0.11 0.00
RAM Systematic Emerg Markets Core Eq $ 109.10 - 0.66 - Trojan Global Income O Inc 99.17 - -0.03 3.09
LF Ruffer Japanese O Acc X 246.46 - 0.79 0.00 Time: Some funds give information about the timing of
Pictet-ST.MoneyMkt-IUSD $ 139.39 - 0.01 0.00 Stenham Equity UCITS USD $ 185.05 - 3.75 0.00 price quotes. The time shown alongside the fund
RAM Systematic Emerg Markets Eq $ 193.23 - 1.34 - Trojan Income O Acc 325.17 - -0.32 3.92
LF Ruffer Pacific C Acc 378.70 - 0.83 0.92 manager’s/operator’s name is the valuation point for
Pictet-Timber-I USD F $ 216.91 - -0.26 0.00 Yuki International Limited (IRL)
Optima Fund Management RAM Systematic European Eq € 471.47 - -0.91 - Stenham Growth USD $ 225.40 - -1.78 - Trojan Income O Inc 186.10 - -0.18 4.05 their unit trusts/OEICs, unless another time is
Tel +44-20-7269-0207 www.yukifunds.com indicated by the symbol alongside the individual unit
Other International Funds Pictet TR-Agora I EUR € 126.46 - -0.28 0.00 LF Ruffer Pacific C Inc 106.48 - 0.23 1.10
RAM Systematic Global Shareholder Yield Eq $ 134.56 - 0.41 0.00 Stenham Healthcare USD $ 212.61 - -1.88 0.00 Regulated trust/OEIC name.
Cuttyhunk Fund II Limited $ 1646.71 - 16.51 0.00 LF Ruffer Pacific O Acc 371.90 - 0.80 0.62 Yuki Mizuho Umbrella Fund
Pictet TR-Corto Europe I EUR € 147.29 - 0.01 0.00 Stenham Managed Fund USD $ 121.19 - -0.23 0.00
RAM Systematic Long/Short Emerg Markets Eq $ 122.12 - 0.47 - The symbols are as follows: ✠ 0001 to 1100 hours; ♦
JENOP Global Healthcare Fund Ltd $ 16.24 - 0.09 0.00 UBS Asset Management (UK) Yuki Mizuho Japan Dynamic Growth ¥ 10502.00 - 2.00 0.00
LF Ruffer Total Return C Acc 442.29 - 0.19 1.46 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Pictet TR-Divers Alpha I EUR € 112.19 - 0.00 0.00 Stenham Quadrant USD A $ 426.74 - 1.85 -
RAM Systematic Long/Short European Eq € 155.13 - -0.35 - 5 Broadgate, London, EC2M 2QS midnight. Daily dealing prices are set on the basis of
OPTIKA Fund Limited - Cl A $ 139.61 - 3.58 0.00 Yuki Japan Low Price ¥ 51120.00 - -351.00 0.00
LF Ruffer Total Return C Inc 295.88 - 0.13 1.46 Client Services 0800 358 3012, Client Dealing 0800 358 3012 the valuation point, a short period of time may elapse
Pictet TR-Kosmos I EUR € 109.87 - 0.07 0.00 Stenham Trading Inc USD $ 122.84 - 0.50 -
RAM Systematic North American Eq $ 304.86 - 0.49 - www.ubs.com/retailfunds before prices become available. Historic pricing: The
Optima Fd NAV $ 98.99 - 0.26 0.00 Yuki Japan Value Select ¥ 21601.00 - -61.00 0.00
LF Ruffer Total Return O Acc 434.70 - 0.16 1.45 letter H denotes that the managers/operators will
Pictet TR-Mandarin I USD $ 165.99 - 1.33 0.00 Stenham Universal USD $ 456.08 - 1.95 - Authorised Inv Funds
RAM Tactical Convertibles Europe € 150.28 - -0.15 - Yuki Asia Umbrella Fund normally deal on the price set at the most recent
Optima Discretionary Macro Fund Limited $ 86.72 - -0.41 0.00 LF Ruffer Total Return O Inc 290.63 - 0.10 1.47 OEIC valuation. The prices shown are the latest available
Pictet-US Equity Selection-I USD $ 248.12 - 0.26 0.00 Stenham Universal II USD $ 167.00 - 0.65 0.00 Yuki Japan Rebounding Growth Fund JPY Class ¥ 40980.00 - -10.00 0.00
RAM Tactical Global Bond Total Return € 143.04 - -0.11 - UBS Global Emerging Markets Equity C Acc £ 0.83 - 0.00 1.16 before publication and may not be the current dealing
The Dorset Energy Fd Ltd NAV $ 23.53 - -0.14 0.00 levels because of an intervening portfolio revaluation
Pictet-US High Yield-I USD F $ 164.61 - 0.73 0.00 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1609.81 - -0.21 0.00
RAM Tactical II Asia Bond Total Return $ 139.49 - 0.11 - UBS Global Optimal C Acc £ 1.02 - 0.00 0.71 or a switch to a forward pricing basis. The
Platinum Fd Ltd $ 111.77 - -0.48 0.00 managers/operators must deal at a forward price on
Pictet-USA Index-I USD F $ 248.24 - 0.22 0.00
UBS UK Opportunities C Acc £ 0.95 - 0.00 2.83 request, and may move to forward pricing at any time.
Platinum Fd Ltd EUR € 20.52 - -0.10 0.00 Forward pricing: The letter F denotes that that
Pictet-USD Government Bonds-I F $ 637.81 - -0.49 0.00
UBS US Equity C Acc £ 1.22 - 0.01 0.27 Zadig Gestion (Memnon Fund) (LUX) managers/operators deal at the price to be set at the
Platinum Japan Fd Ltd $ 70.45 - 0.16 0.00 Rathbone Unit Trust Mgmt (1200)F (UK)
next valuation.
Pictet-USD Short Mid-Term Bonds-I F $ 131.19 - 0.01 0.00 PO Box 9948, Chelmsford, CM99 2AG FCA Recognised
UBS S&P 500 Index C Acc £ 0.83 - 0.00 1.52
Optima Partners Global Fd $ 16.92 - 0.02 0.00 Order Desk: 0845 300 2101, Enquiries: 0207 399 0399
Pictet-USD Sov.ST.Mon.Mkt-I $ 105.13 - 0.01 0.00 Memnon European Fund I GBP £ 171.70 - -0.29 0.00 Investors can be given no definite price in advance of
Authorised Inv Funds UBS Targeted Return C Acc £ 13.83 - -0.03 1.32 the purchase or sale being carried out. The prices
Optima Partners Focus Fund A $ 17.64 - 0.01 0.00
Pictet-Water-I EUR F € 335.30 - -1.49 0.00 appearing in the newspaper are the most recent
Blue Chip Income Inc 149.44 154.23 -0.28 4.22 S W Mitchell Capital LLP (IRL)
provided by the managers/operators. Scheme
Superfund Asset Management GmbH UBS Sterling Corporate Bond Indexed C Acc £ 0.60 - 0.00 2.86
Money Market
Optima STAR Fund (hedged) $ 107.73 - 0.10 0.00 Regulated
www.superfund.com, +43 (1) 247 00 particulars, prospectus, key features and reports: The
Blue Chip Income Acc 243.71 251.10 -0.46 4.02 most recent particulars and documents may be
SWMC European Fund B EUR € 18726.34 - -58.06 0.00 UBS Multi Asset Income C Inc Net £ 0.49 - 0.00 3.94
Optima STAR Long Fund $ 145.83 - 0.23 0.00 Regulated
obtained free of charge from fund
Ethical Bond Inc 93.88 95.76 -0.02 4.10
SWMC Small Cap European Fund B EUR € 15621.21 - 21.68 0.00 Superfund Green EUR SICAV € 958.84 - 1.67 0.00 UBS UK Equity Income C Inc Net £ 0.75 - 0.00 3.86 Trusts and managers/operators. * Indicates funds which do not
price on Fridays.
Ethical Bond Acc 197.74 201.13 -0.04 4.00
Superfund Red EUR SICAV € 798.08 - -6.31 0.00 UBS Corporate Bond UK Plus C Inc Net £ 0.53 - 0.00 4.16
Oryx International Growth Fund Ltd Global Opportunities Acc 213.79 219.88 -0.05 0.00
Superfund Blue EUR € 760.11 - -1.81 0.00 UBS Global Allocation (UK) C Acc £ 0.82 - 0.00 1.75
Bank Accounts Gross
Charges for this advertising service are based on the
number of lines published and the classification of the
Other International Funds
Gross Net AER Int Cr fund. Please contact data@ft.com or
Income Inc 922.60 953.03 1.86 3.92 Other International Funds
NAV (Fully Diluted) £ 9.00 - -0.23 0.00 UBS Global Enhanced Equity Income C Inc £ 0.45 - 0.00 6.45 call +44 (0)20 7873 3132 for further information.
Income Acc 1570.52 1619.37 3.17 3.61 Superfund Green Gold SICAV $ 1047.89 - 1.90 0.00
Platinum Capital Management Ltd UBS US Growth C Acc £ 1.34 - 0.01 0.00 CCLA Investment Management Ltd
Other International Funds Superfund Red Silver SICAV $ 418.92 - -5.21 0.00 Senator House 85 Queen Victoria Street, London EC4V 4ET
Multi Asset Enhanced Growth Acc 164.63 - 0.24 0.08
UBS Emerging Markets Equity Income C Inc £ 0.52 - 0.00 3.98 CBF Church of England Deposit Fund 0.40 - 0.40 Qtr
Platinum All Star Fund - A (Est) $ 130.54 - - -
Multi Asset Strategic Growth inc 176.31 - 0.14 1.39
UBS FTSE RAFI Dev 1000 Index J Acc £ 148.33 - -0.11 2.46
Platinum Global Dividend Fund - A (Est) $ 45.54 - - - RobecoSAM (LUX)
Multi Asset Strategic Growth acc 193.74 - 0.15 1.37 CCLA Fund Managers Ltd
Tel. +41 44 653 10 10 http://www.robecosam.com/ Thesis Unit Trust Management Limited (UK) UBS MSCI World Min Vol Index J Acc £ 150.63 - -0.55 2.27
Platinum Global Growth UCITS Fund $ 10.00 - - - Senator House 85 Queen Victoria Street, London EC4V 4ET
Regulated Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Multi Asset Total Return inc 131.00 - -0.03 1.50 COIF Charities Deposit Fund 0.40 - 0.40 Qtr
RobecoSAM Sm.Energy/A £ 18.38 - 0.09 1.24 Authorised Funds
Multi Asset Total Return acc 149.81 - -0.03 1.50
TM New Court Fund A 2011 Inc £ 14.94 - 0.03 0.40
Pictet Asset Management (Europe) SA (LUX) RobecoSAM Sm.Energy/N € 16.55 - 0.10 0.00 Unicapital Investments (LUX)
15, Avenue J.F. Kennedy L-1855 Luxembourg Rathbone UK Opportunities Inc 512.49 530.16 2.67 2.39 Regulated
TM New Court Fund - A 2014 Acc £ 15.04 - 0.03 0.46
Tel: 0041 58 323 3000 RobecoSAM Sm.Materials/A £ 206.47 - -0.38 1.34
Rathbone UK Opportunities Acc 654.57 676.20 3.41 2.32 Investments IV - European Private Eq. € 126.72 - -1.24 0.00
FCA Recognised TM New Court Equity Growth Fund - Inc £ 15.64 - 0.04 0.47
RobecoSAM Sm.Materials/N € 211.18 - -0.15 0.00
Pictet-Absl Rtn Fix Inc-HI EUR € 105.79 - -0.07 0.00 Strategic Bond I-Class Acc 143.07 143.70 0.02 2.90 Investments IV - Global Private Eq. € 170.83 - -3.11 0.00
RobecoSAM Sm.Materials/Na € 141.99 - -0.10 1.33
Pictet-Asian Equities Ex Japan-I USD F $ 322.95 - -3.50 0.00 Strategic Bond I-Class Inc 115.79 116.43 0.01 2.96
RobecoSAM Gl.Small Cap Eq/A £ 113.70 - -0.24 1.13
Pictet-Asian Local Currency Debt-I USD F $ 167.45 - -0.26 0.00
Polar Capital Funds Plc (IRL)
Regulated RobecoSAM Gl.Small Cap Eq/N € 200.44 - -0.18 0.00 Unicorn Asset Management Ltd (UK)
Pictet-Biotech-I USD F $ 810.43 - 9.26 0.00 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
Automation & Artificial Intelligence CL I USD Acc $ 10.83 10.83 0.00 -
RobecoSAM Sustainable Gl.Eq/B € 218.44 - -0.26 0.00 Authorised Inv Funds
Pictet-CHF Bonds I CHF SFr 503.84 - -0.67 0.00 Asian Financials I USD $ 390.64 390.64 -3.78 0.00 UK Growth A Inc 629.52 - 2.74 0.71
RobecoSAM Sustainable Gl.Eq/N € 191.73 - -0.21 0.00
Pictet-China Index I USD $ 171.08 - 2.27 0.00 Biotechnology I USD $ 24.40 24.40 0.26 0.00 Mastertrust A Inc X F 520.39 - 0.09 0.23
RobecoSAM S.HealthyLiv/B € 189.95 - 0.18 0.00 Toscafund Asset Management LLP (UK)
Pictet-Clean Energy-I USD F $ 104.00 - 0.36 0.00 European Income Acc EUR € 12.34 12.34 -0.03 0.00 www.toscafund.com
UK Growth B Inc 633.44 - 2.74 1.34
RobecoSAM S.HealthyLiv/N € 180.23 - 0.17 0.00 Authorised Funds
Pictet-Digital-I USD F $ 415.46 - -0.57 0.00 European Ex UK Inc EUR Acc € 11.33 11.33 -0.01 0.00
Aptus Global Financials B Acc £ 4.60 - 0.03 4.30 Mastertrust B Inc X F 467.94 - 0.10 0.90
RobecoSAM S.HealthyLiv/Na £ 135.05 - -0.02 1.38
Pictet-Em Lcl Ccy Dbt-I USD F $ 180.13 - -1.23 0.00 Financial Opps I USD $ 14.94 - 0.02 1.84
Aptus Global Financials B Inc £ 3.61 - 0.03 4.46 Outstanding British Cos A Acc X F 311.38 - 1.80 0.75
RobecoSAM S.Water/A £ 239.02 - -0.52 1.47

Morningstar Fund Ratings

EAA Fund EUR Corporate Bond
Name ISIN Currency NAV Total Ret Total Ret Total Ret 12 Month Ongoing Fund Size Morningstar Morningstar Morningstar Morningstar Morningstar Analyst
1Yr 3Yr 5Yr Yield Charge Rating TM Sustainability Rating TM Analyst Rating TM Analyst Rating Date/Time*

Schroder ISF EURO Corp Bd C Acc EUR LU0113258742 Euro 24.07 2.02 3.00 4.47 0.00 0.64 8,957,773,263.00 QQQQQ ´ 08/06/2017 07:00 Carlos Lucar, CFA

Kempen (Lux) Euro Credit Plus I LU0986645306 Euro - 1.33 2.00 - 0.00 0.53 317,076,786.00 QQQQQ „ 27/02/2018 10:21 Niels Faassen

Kempen (Lux) Euro Credit J LU0630255858 Euro - 1.31 2.00 3.30 2.05 0.43 1,671,253,300.00 QQQQQ „ 20/02/2018 08:00 Niels Faassen

MS INVF Euro Corporate Bond A LU0132601682 Euro 50.74 0.91 2.00 3.20 0.00 1.04 5,038,680,183.00 QQQQ ´ 05/09/2017 09:00 Ashis Dash, CFA

M&G European Corporate Bond Euro C Acc GB0032179045 Euro 20.00 0.96 2.00 3.19 1.50 0.66 1,805,696,256.00 QQQQQ ´ 21/02/2018 05:30 Ashis Dash, CFA

BGF Euro Corporate Bond A1 EUR LU0162660350 Euro 13.49 1.23 2.00 3.06 0.55 1.03 1,698,421,896.00 QQQQ „ 31/08/2017 05:00 Ashis Dash, CFA

Fidelity Euro Corporate Bond Y-Acc-EUR LU0370787359 Euro 32.87 1.48 2.00 3.19 0.00 0.68 337,905,612.00 QQQ ´ 05/06/2017 03:00 Carlos Lucar, CFA

UniEuroRenta Corporates M LU0117073196 Euro - 1.17 2.00 3.35 1.52 0.57 886,014,648.00 QQQQ ´ 19/12/2017 10:00 Mara Dobrescu, CFA

BlueBay Investment Grade Bd B EUR LU0179826135 Euro 183.29 2.65 2.00 2.56 0.00 0.66 2,790,375,044.00 QQQQ ´ 28/12/2017 06:00 Ashis Dash, CFA

Janus Henderson Hrzn Euro Corp Bd I2 EUR LU0451950587 Euro 160.36 1.44 2.00 2.90 0.00 0.75 1,764,173,430.00 QQQQ ´ 08/03/2018 07:25 Ashis Dash, CFA

MSCI Benchmark 0.90 1.99 2.88 Date/Time of ratings is Universal Co-ordinated Time (UTC). Sorted by Annualised 3yr Total Return of NAV (highest to lowest).
Morningstar Category Benchmark 0.80 1.62 2.63 For important information about Morningstar Analyst Rating please go to: http://global.morningstar.com/managerdisclosures
Wednesday 16 May 2018 ★ FINANCIAL TIMES 25

MARKETS & INVESTING

Tail risk
Analysis. Commodities
Glencore’s Congo
Venezuela’s collapsing crude tussles look pivotal
for cobalt prices

exports send prices soaring HENRY SANDERSON

The fate of Glencore’s

Plummeting foreign sales and
effect of Iran sanctions raise
prospect of $100-a-barrel oil
FT REPORTERS
With Venezuela’s exports of crude on
the brink of collapsing below 1m barrels
a day to historic lows, the bull case for
energy has additional support as credi-
tors of the cash-strapped national oil
company PDVSA threaten to seize over-
seas assets.
The global energy market is bracing
for a spike in crude prices as Venezuela’s
export woes intensify, just as Iran’s for-
eign sales are set to fall because of new
US sanctions after the Trump adminis-
tration’s exit from the nuclear deal.
A drop in Venezuelan and Iranian
supply could provide the “perfect cock-
tail” for oil at $100 a barrel next year or
sooner, said analysts at London-based
broker PVM.
Brent crude hit a near four-year high
of $78 a barrel on Monday. This could
prompt Opec and Russia to unwind
their production deal to cut supplies.
Venezuela’s foreign oil sales have
fallen 40 per cent from a year ago to
1.1m b/d in April, according to data from
tanker tracker website Kpler.
And the Opec member’s exports are
seen to be dropping sharply as troubles
mount for PDVSA, with Russ Dallen of
investment bank Caracas Capital saying
that the company faces “an avalanche”
of lawsuits over unpaid bonds.
US exploration and production group
ConocoPhillips has won court orders
giving it control over refining and stor-
age assets owned by PDVSA in the Carib-
bean, a hub for exporting Venezuelan
crude to Asia.
The enforcement of a $2bn arbitra-
tion award, related to the nationalisa-
tion of Conoco projects in Venezuela in
2007, prompted PDVSA to suspend oil
storage and shipping from Caribbean
facilities and order the return of tankers
to national waters to avoid seizure.
“This shows how devastating not pay-
ing arbitrations or debts that are owed
by PDVSA . . . could be for the Venezue-
lan oil exports,” said Francisco Monaldi,
at Rice University’s Baker Institute for
Public Policy.
One industry executive said it was
unclear whether Conoco had possession
of the seized assets, but PDVSA is chal-
lenging the court and trying to sidestep
orders. “Short term, this will surely have
an impact on both Venezuelan exports
and oil markets.”
At least 150,000 b/d of Venezuelan
crude was exported via the facilities tar-
geted by Conoco. Not only are these sup-
plies at risk, the effect of any seizures
and related backlogs at Venezuelan
ports could fuel bigger falls in foreign
sales. But a fresh round of claims by
PDVSA’s contractors could further sty-
mie exports. The drop in essential crude
revenues comes ahead of a snap presi-
dential poll in Venezuela on May 20,
where incumbent Nicolás Maduro is
seeking a second term in office despite
economic and social crises.
The country, which has the world’s
largest proven crude reserves, faces a
devastating recession and sizeable debt
payments to bondholders, while con-
fronting other arbitration cases after a
wave of nationalisations under the late
leader Hugo Chávez.
SNC-Lavalin, a Canadian engineering
and construction group, filed a legal suit
in New York last week for default on a
promissory note that would allow it to
seize assets worth $25m. SNC’s claim is
small, but others could follow from
those holding identical financial instru-
ments worth more than $2bn.
Mr Dallen of Caracas Capital said that
SNC and the other noteholders could
even get ahead of ConocoPhillips in the
queue to seize PDVSA assets. “SNC
doesn’t have to register its claim in
court, it can just go ahead and enforce.”
Such claims could multiply quickly if
SNC’s lead is followed by holders of
about $23bn worth of PDVSA’s
eurobonds, said Mark Walker of advi-
sory firm Millstein & Co in New York,
who represents a committee of PDVSA
and Venezuelan sovereign bondholders.
But Mr Walker warned that a wave of
legal actions and asset seizures could go
against creditors’ interests. “The fact is
that PDVSA doesn’t have any money,”
he said. “Creditors need to co-operate.”
He said that ConocoPhillips would do
mines in the Democratic
Republic of Congo could
determine who controls
cobalt, a metal whose price has soared
Venezuela crude
given its use in electric car batteries.
oil production Glencore is the world’s largest
’000 barrels per day supplier of cobalt, and is set to more
than double its production by 2020.
2,400 But its operations in the DRC have
been challenged by Israeli billionaire
2,200 Dan Gertler, the company’s former
business partner, who was sanctioned
2,000 by the US in December.
Mr Gertler, who the US accused of
1,800 “opaque and corrupt mining and oil
deals” in the Congo, last month
1,600 launched legal action against Glencore
for failing to pay him royalties under
1,400 existing contracts.
Glencore has also been taken to
2012 14 15 16 17 18 court by the country’s state-owned
Venezuela’s missing miner Gécamines, which has accused it
of draining money from its local joint
bond payments venture, in which it owns a 20 per cent
Sovereign external debt, monthly stake. Gécamines has a close
payments ($m) relationship with Mr Gertler.
Owed Disbursed The tussles could cause Glencore to
600 sell a stake in one or both of its DRC
copper and cobalt mines, with the
500 most likely candidates seen as Russian
or Chinese companies, according to
400 analysts. Bringing in a partner could
help Glencore mitigate against risks in
300 the resource-rich country, where
elections are expected this year.
200
But it would also bring another
100 player into the cobalt market, just as
global carmakers are looking to lock up
0 supplies to meet ambitious plans to
Jan 2017 Dec increase electric car production.
So far Glencore has sold most of its
Sources: Bloomberg; Banco Central de Venezuela; cobalt production to China, striking
Caracas Capital
deals with its largest battery maker
CATL as well as battery materials
Creditors of the well to reach an agreement with PDVSA producer and recycler GEM Co.
cash-starved that allowed it to continue exporting That would give China an even
national oil and earning revenues. greater hold over global cobalt
group PDVSA The danger is that PDVSA may no supplies just as its battery companies
are threatening longer be acting rationally. Last month, are scaling up production. CATL is
to seize overseas two executives at US major Chevron, about to raise $2bn in a Shenzhen
assets — Carlos Garcia which has continued to operate in Vene- listing and has agreements to supply
Rawlins/Reuters
zuela, were arrested and charged with batteries to Volkswagen and BMW.
treason after reportedly refusing to sign Analysts at Deutsche Bank reckon
overpriced supply contracts. Glencore could command a premium
Until last year, said Mr Dallen, PDVSA for its assets. They value Glencore’s
had sought to keep its creditors engaged two mines in the country — Mutanda
in helping to get its oil to market. But and Katanga — at $9.7bn.
this changed in November with the Others warn there is a risk of forced
appointment of Major General Manuel asset sales should the legal disputes
Quevedo as oil minister and head of remain unresolved. That outcome is
PDVSA, who had no previous experi- seen as pushing up the price of
ence in the industry. cobalt and raising costs for global
“Quevedo has declared war on every- battery makers — limiting the ability
body,” said Mr Dallen. “That’s just stu- of electric cars to compete with their
pid. They’re your partners — you don’t gasoline rivals.
lock people up for doing their job.”
The greatest danger to creditors and
PDVSA’s exports is that Mr Quevedo
‘Quevedo could make use of a presidential decree
has on April 12 that gives him absolute con-
trol of the oil industry, including the
declared explicit power to liquidate PDVSA.
war on Meanwhile, Gary Ross, head of oil at
S&P Global Platts, warned that western
everybody. energy majors could further scale back FastFT
That is just operations in Venezuela. “There’s little Our global team
evidence the slide in their production is
stupid — going to slow.”
gives you
market-moving
they are Reporting by Anjli Raval, Jonathan Wheat- news and views,
ley and David Sheppard in London, and Glencore’s Mutanda and Katanga
your John-Paul Rathbone and Gideon Long in
24 hours a day
ft.com/fastft mines may be worth $9.7bn
partners’ Bogotá

Currencies Capital markets

Investors start to lose their appetite for Turkey
ROGER BLITZ AND JONATHAN WHEATLEY
LONDON
LAURA PITEL — ISTANBUL
When banks and investment funds sent
senior representatives to dine with
Recep Tayyip Erdogan, they probably
expected the Turkish president to
deliver a reassuring message about
investing in his country.
But by the end of Monday’s lunch at
Bloomberg’s London office, they were
left wondering whether there was any
longer an argument for risking their
money in his country’s currency, stocks
and government bonds.
The message was uncompromising.
The Turkish president, seeking re-
election next month, made clear that
not only was he steadfastly opposed to
raising rates, he was intent on taking
control of monetary policy.
Investors had for months given the
president some leeway, prepared to
overlook a rising current account deficit
and high inflation because of Turkey’s
strong banking system and fiscal disci-
pline.
Their assumption was that despite the
president’s repeated aversion to raising
rates, the central bank would end up
“doing the right thing”.
Market reaction was blunt after the
president told investors to their face
what he thought of monetary policy .
The Turkish lira plumbed a new
record low, while the country’s dollar-
denominated 10-year yield rose more
than 40 basis points to 7.08 per cent.
The lira has lost 15 per cent of its value in
the past three months, while the 10-year
yield is up from a low of 5.27 per cent in
January.
As Moody’s warned about Turkey’s
“overheating economy”, the conse-
quences for international investors are
plain. “How can you invest in a country
when the guy doesn’t believe in basic
interest rate theory?” said one person
with knowledge of the discussion. “Tur-
key almost looks uninvestible.”
Turkey would beg to differ. A head-
line on one pro-government newspaper
Recep Tayyip Erdogan is intent on
taking control of monetary policy
described the lunch as an “18 trillion
dollar meeting”. Turkish media
reported that the president urged those
present to take advantage of special
investment schemes for foreign inves-
tors, with new ones being prepared, and
assured them there was no discrimina-
tion between foreign and Turkish inves-
tors.
But the conditions for investing are
far from benign. EM assets already look
too much of a risk as the US dollar gains
lustre from Treasury yields rising to
multiyear highs. With the exception of
Argentina, nowhere in emerging mar-
kets looks as vulnerable as Turkey.
“Coming at a time when Turkey
already had pretty acute vulnerabilities,
Erdogan has thrown petrol on the
flames,” said Paul Greer, portfolio man-
ager for EM fixed income at Fidelity
International in London.
Analysts were similarly dismayed by
what were described as “astonishing”
remarks by Mr Erdogan on interest
rates at a private meeting at Chatham
House, the international relations
think-tank, earlier in the day, where he
reportedly asked those present to
“please learn” that low interest rates
deliver low inflation.
“When you hear things like that, you
really start to wonder,” said one of those
present.
“There’s no hope now,” said another.
“It sounds like he doesn’t listen to any-
one any more.”
The lira has fallen steeply since the
middle of April, when the US dollar
began to strengthen after depreciating
for two years. The combination of a
strengthening dollar, rising US interest
rates and rising oil prices has been par-
ticularly damaging for Turkey, with its
large foreign currency debts and its cur-
rent account deficit equal to about 6 per
cent of GDP, largely a result of its
dependency on imported oil.
In lira terms, Mr Greer noted, the
price of oil has risen 40 per cent in the
past two months. This, he warned,
would have an immediate impact on
inflation, currently running at 10.8 per
cent a year.
“We think inflation is heading for 15
per cent pretty quickly,” he said. “But
they’ve got a central bank with an effec-
tive policy rate of 13.5 per cent, which is
woefully inadequate. They need to act
quickly, but they are really messing
things up for themselves.”
Futures markets show investors have
“priced in” 350 basis points of interest
rate rises in the next six months, taking
the policy rate to 17 per cent a year. If
that is not delivered, the lira will be even
more vulnerable to selling pressure.
Additional reporting by Steve Johnson
MSCI to add 234 Chinese
stocks to flagship EM index
EMMA DUNKLEY — HONG KONG
Index provider MSCI has unveiled a list
of 234 Chinese mainland-listed stocks
to be added to its flagship emerging
markets index, an inclusion that repre-
sents a key development in the opening
of the country’s markets to overseas
investors.
After months of tweaks, MSCI yester-
day published the final list of Chinese
companies for inclusion in the index at
the end of May. The index is used as a
benchmark for some $1.6tn of assets
globally.
The stocks to be added span sectors
ranging from banking, such as Indus-
trial and Commercial Bank of China and
Bank of China, to real estate, including
developer China Vanke, and consumer
brands such as Qingdao Haier.
Although the initial number of stocks
is just a sliver of China’s 3,000 renminbi-
denominated A-shares, analysts expect
it to rise as the country’s markets
become increasingly accessible with
fewer capital controls.
MSCI inclusion will mean that inves-
tors in passive funds, such as index
trackers and exchange traded funds,
will be forced to hold these A-shares.
The list had fluctuated because MSCI
said any stock that was suspended from
trading for more than 50 consecutive
days would not be eligible for inclusion.
That stipulation came after trading in
more than 1,000 Chinese A-shares was
suspended in 2015 during the market
sell-off in an attempt by companies to
stop their share prices from tumbling.
The inclusion of the 234 stocks will be
done over two stages, at the end of May
and end of August. They will represent a
0.78 per cent weighting in the emerging
markets index. However, analysts say
that could rise to about 16 per cent over
time.
MSCI had proposed adding A-shares
to the Emerging Markets index three
times since 2013, but was rebuffed by
stakeholders — primarily large asset
managers — concerned about their abil-
ity to move money freely in and out of
the country.
The turning point came with the
growth of the stock connect pro-
gramme, which was created in 2014 but
has expanded rapidly over the past few
years.
The dual trading links between Hong
Kong and the Shanghai and Shenzhen
markets enable overseas investors to
access the China A-share market
through their accounts in Hong Kong.
26 ★ Wednesday 16 May 2018

The day in the markets Ant Financial is testing a

What you need to know
very modern version of
3 US 10-year Treasury yield hits seven-
trade protectionism
10-year US Treasury yield hits 7-year high as retail sales data reassure
year high after solid retail sales data
Per cent
3 Dollar index reaches 2018 peak
3 Gold falls below $1,300 3.2
3 Brent nears $80 a barrel

Speculation that the Federal Reserve

Henny Sender
3.0
could adopt a more hawkish policy stance
helped push the yield on the 10-year
Treasury solidly above 3 per cent to its
Markets Insight
highest level in seven years, driving up 2.8

I
the dollar in its wake but rattling equity nvestors will find much to cheer in business of state-owned banks despite things that way, why won’t they else-
markets and sending gold sharply lower. the pitch Chinese fintech group Ant Ant’s insistence the company is more where?
The talk of a more aggressive Fed was 2.6 Financial made in its latest fund- partner than a rival. The discussion of Then there is India with its fraught
encouraged by data showing that raising. risks in the fundraising document notes combination of a lack of domestic risk
headline US retail sales rose 0.3 per cent It underlines the sheer scale of that “over the past year, regulators have capital and an open market. This means
last month while the March and February 2.4 the company, which controls over half put a lot of emphasis on the booming that its new economy companies are
readings were revised upwards. Jan 2018 May China’s $16tn mobile payments market fintech area. AFS being the single big- largely either American, such as Face-
“April retail sales point to a healthy and is a force in wealth management, gest player in the space, will be exposed book, Google and Amazon, or are run by
Source: Thomson Reuters Datastream
start to consumption spending in the credit analysis as well as in lending to to some business model transformation Indians but backed by capital provided
second quarter,” said Pooja Sriram, an both households and small enterprises. under new rules.” by China’s Alibaba and Tencent or
economist at Barclays. But there is plenty of sobering reading The changes will especially affect its Japan’s SoftBank. For example, Paytm, a
The prior months’ revisions suggested there is more cash in people’s pockets. In the country’s president vowed to take in the pitch, according to a summary wealth management division. The sum- digital wallet company based in New
“less weakness in first-quarter turn, this leads us to look for a further greater control of monetary policy if he seen by the FT and confirmed by inves- mary of the pitch says that rules will Delhi, is 60 per cent owned by SoftBank
consumption spending compared with three Fed rate rises in 2018.” wins elections. Gold sank below $1,300 an tors. And they stem from Ant Finan- have a “negative impact” on the scale and Alibaba. At some point, the Reserve
what was captured in the advance release The yield on the 10-year Treasury rose ounce for the first time since late January. cial’s domestic dominance as well as its and size of Yu’E Bao, its money market Bank of India may decide that it is not in
of first-quarter GDP”, she added. as high as 3.069 per cent, according to On Wall Street, the S&P 500 index was soaring global ambitions — a combina- fund. India’s interests to have such a sensitive
James Knightley, an economist at ING, Reuters data, the highest level since July heading for its first fall in five sessions tion that has proved so beguiling to sector partly in the hands of foreign
investors in the top tech firms on both entities.
noted that US retail sales data had been
heavily distorted over the past few
2011, and up 7.4 basis points on the day.
The Treasury yield curve steepened as
with the mood also hurt by uncertainty
over US-China trade talks. sides of the Atlantic.
Global frictions are more The push by the likes of Ant Financial
months, particularly by hurricane activity. the two-year rose 3bp to 2.57 per cent. Technology stocks led the way lower — While Donald Trump’s threat of a likely to pivot around overseas only sharpens the chances of
trade war with China is grabbing head- more financial protectionism, particu-
“Now that these distortions are out the
way, we expect upcoming data to show
Those gains helped the dollar index
touch a 2018 high of 93.46 as the US
although energy outperformed as Brent
oil edged closer back towards $80 a lines, there is something almost quaint
21st-century challenges larly as Chinese companies try to
households continuing to spend currency hit a three-month peak versus barrel. The international crude about tugs of war over products such as posed by fintech groups expand into countries that may have a
strongly,” he said. ”Employment is rising, the yen and the euro fell back below $1.19. benchmark hit $79.47, the highest since steel. It all seems so 20th century. Global tense relationship with Beijing. In Japan,
wages are growing and tax cuts means The Turkish lira hit a record low after late 2014. Dave Shellock frictions are much more likely to pivot for example, Alipay is building a net-
around the 21st-century challenges Internationally, there are already work of merchants in an effort to under-
posed by fintech companies such as Ant, signs of tension. In January, US regula- cut credit card companies.
Markets update which is 33 per cent-owned by Alibaba. tors vetoed Ant Financial’s acquisition Traditional trade wars are dominat-
As with major tech companies in the US, of MoneyGram International, a remit- ing for now — and generating collateral
Ant Financial also faces the threat of tance company, in a move that appeared damage in the world of takeovers. In late
more regulation at home. to stretch the mandate of the Commit- March, Chinese antitrust authorities
US Eurozone Japan UK China Brazil “We are living in a world of reverse tee on Foreign Investment in the US — a were expected to sign off on a joint bid
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa globalisation, and to find the right body responsible for vetting takeovers for Toshiba’s chip business from Boston-
Level 2707.97 1540.52 22818.02 7722.98 3192.12 84941.31 investment model to work with that is a that raise issues of national security. based buyout firm Bain Capital and
% change on day -0.81 0.14 -0.21 0.16 0.57 -0.34 great challenge,” says a London-based It is unlikely to be the last. Consider, South Korea’s SK Hynix. Sadly for the
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ chief investment officer. for example, Ant Financial’s joint ven- prospective purchasers, the day before
Level 92.972 1.186 110.320 1.350 6.354 3.675 Such frictions may not be enough to ture with First Data, a US payments the expected sign-off Mr Trump
% change on day 0.416 -0.919 0.703 -0.735 0.279 1.554 derail markets. But combined with ris- infrastructure firm. In May 2017, Ant announced his tariffs against China. In
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond ing geopolitical strains, diverging eco- Financial announced a plan to make its response, Chinese regulators have
Yield 3.059 0.643 0.052 1.513 3.702 9.969 nomic growth among countries and the Alipay payments platform available on delayed giving the deal the green light,
Basis point change on day 6.710 3.500 0.540 4.300 0.900 -3.400 prospect of less liquidity, financial pro- First Data’s point of sale devices to 4m people familiar with the matter say.
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) tectionism is not something investors merchants in the US. If US authorities But tariffs over steel and aluminium
will be able to ignore. really believe financial data has national will eventually be trumped by a much
Level 341.08 78.84 70.81 1319.85 16.65 3347.70
In China, Ant Financial is likely to security implications, it is only a matter more modern version of protectionism.
% change on day -0.88 0.47 -0.46 -0.34 -0.69 0.12
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.
feed regulators’ anxiety that the com- of time before such arrangements are
pany is becoming a threat to the core challenged. And if US regulators do see henny.sender@ft.com
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
2800 1560 8000

1520 7680
2720
1480 7360
2640 7040
1440
| | | | | | | | |
2560 | | | | | | | | | | | | | | | | | | | |
1400 | | | | | | | | | | | | | | | | | | | | 6720 | | | | | | | | | | |

Mar 2018 May Mar 2018 May Mar 2018 May

Biggest movers
% US Eurozone UK
Mattel 5.39 Seadrill 15.23 Taylor Wimpey 3.69
Nektar Therapeutics 4.66 Raiffeisen Bank Internat 4.59 Easyjet 3.32
Ups

Under Armour 3.69 Commerzbank 3.87 Barratt Developments 2.71

Under Armour 3.54 Oci 2.68 Hargreaves Lansdown 2.48
Cf Industries Holdings 2.79 Saipem 2.44 Compass 2.20
%
Agilent -8.20 Iliad -19.52 Vodafone -4.26
D.r. Horton -5.19 Thyssenkrupp -6.45 Fresnillo -3.38
Downs

Nvidia -4.49 Merck -6.28 Mediclinic Int -2.81

Mettler-toledo Int -3.65 Ses -5.57 Paddy Power Betfair -2.70
Waters -3.18 Orange -3.20 Bt -2.36
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Eurozone London

Shares in Home Depot eased more than Pandora fell 13 per cent after the Danish Shares in easyJet rose more than 3 per
2 per cent by mid-session US trading jeweller said first-quarter growth had cent after the budget airline reduced its
after the group reported lower than slackened in Asia-Pacific and Americas losses with a 19 per cent rise in revenue
expected sales in its first quarter and its markets, which account for half of the for its recent half-year period.
full-year guidance fell short of estimates. group’s revenue. The budget airline’s revenue surpassed
The world’s biggest home Revenues for Pandora’s Americas £2bn for the first time for the six-month
improvement retailer said it expected to segment were down 16 per cent year on period at the end of March, while it issued
report diluted earnings of $9.31 a share in year in Danish krone terms, dropping a full-year profit estimate before tax in a
the 12 months ending January 2019, up 9 per cent in Asia-Pacific. But its Emea range between £530m and £580m.
28 per cent from the 2018 fiscal year. revenues strengthened, up 15 per cent on Analysts at Liberum said this represented
However, this fell short of the $9.39 a the back of store acquisitions. “a material uplift” to consensus forecasts.
share pencilled in by analysts in a The charm bracelet maker reported Vodafone was the biggest single faller
Thomson Reuters survey. earnings before interest, tax, depreciation among London’s top tier shares, down by
The company expects sales growth of and amortisation of DKr1.67bn ($266m), more than 4 per cent after news of the
6.7 per cent in its 2019 fiscal year, which missing analysts’ expectations of departure of its chief executive, Vittorio
now takes into account the adoption of a DKr1.75bn, according to Reuters. Pandora Colao, and the publication of its full-year
new accounting standard and implies had flagged previously that full-year results.
revenue of $107.6bn. That is about $170m revenue growth would be slightly below Richard Hunter at Interactive Investor
short of market expectations. its guidance of 7-10 per cent. pointed to “pockets of caution” within
For its first quarter ended April, Home Energias de Portugal gained 1.6 per Vodafone’s results but he concluded that,
Depot reported a 4.4 per cent year-on- cent after rejecting China Three Gorges’ “given Vodafone’s cash-generative
year rise in revenue to $24.9bn, which was price offer for a full takeover, saying its abilities, the attraction of the dividend
fractionally short of analysts’ proposal of €3.26 per share for the power and its continuing growth prospects”, the
expectations. utility is too low. CTG on Friday launched shares justified a strong “buy” rating.
Elsewhere, a broad-based sell-off a €9bn all-cash tender offer for the 76.7 Land Securities fell 1.7 per cent after it
meant only financials eked out a modest per cent of EDP that it does not already warned that the prospect of Brexit would
0.1 per cent gain, while the remaining 10 own, valuing the entire group at €11.8bn. lead to subdued property markets.
S&P 500 sectors stayed in the red. The shares are now considerably above The comments from the UK’s biggest
Real estate was the biggest laggard, the offer price, having gained more than listed property company came after full-
down 1.3 per cent, followed closely by 9 per cent on Monday, the first day of year results that showed a loss of £251m
tech and telecoms, which were both off trading since it launched its preliminary after refinancing costs relating to £1.5bn
by about 1.2 per cent. Peter Wells bid. Chloe Cornish and Peter Wise of bonds. Michael Hunter