TUESDAY 2 FEBRUARY 2016 WORLD BUSINESS NEWSPAPER EUROPE

Take moonshots New normal Healthy hogs

How to compete in the digital US millennials stay at home rather Chinese demand rises for higher
world — JOHN THORNHILL, PAGE 9 than buy a place to live — PAGE 4 quality food — PATTI WALDMEIR, PAGE 8

Putin lines up UK gives green light to controversial

genetic research on human embryos
Briefing
i Brussels vow to squeeze terror funding

sell-off to close The European Commission will today pledge to

investigate the high number of €500 notes in
circulation as part of an “action plan” to choke off
financing for terrorists in the wake of November’s
attacks in Paris.— PAGE 2; BIG READ, PAGE 7

budget gap i Jordan seeks $1.6bn aid for refugee deal

The prime minister has told the global community
that tens of thousands of Syrian refugees will be
allowed to work in the country as long as it receives

after oil plunge

an aid package to fund stretched services.— PAGE 6

i Leveraged groups boost Wall Street

Four acquisitive US and European companies have
generated more than $1bn in banking fees in the
past three years, highlighting how a few leverage-
fuelled groups have boosted Wall Street.— PAGE 13
3 Company chiefs called to Kremlin i Iowa voters open road to White House
3 Aeroflot, Rosneft and VTB included For news and analysis on the
Republican and Democratic
KATHRIN HILLE — MOSCOW Brent Crude fell 4 per cent yesterday presidential caucuses in Iowa,
to $34.50. The Russian cabinet under including commentary by D
Russia is lining up seven large state com- Dmitry Medvedev, prime minister, is Edward Luce, go to
panies — including Aeroflot, Alrosa, the scrambling to amend its 2016 budget www.ft.com/us-election-2016
diamond miner, and Rosneft — for which was planned on the assumption
potential privatisation as the Kremlin of a 3 per cent deficit, based on crude i More tech groups in law student’s sights
considers drastic options to replace prices averaging $50 per barrel, the level The Austrian student whose case against Facebook
dwindling oil revenues. of early November. brought about the demise of a crucial transatlantic
The intensified debate over the first For Russia, which relied on oil and gas data-transfer arrangement is set to file complaints
such comprehensive push in years revenues for more than half of its budget against Microsoft, Google and Apple.— PAGE 4
comes as the slide in crude prices is until 2014, the slide is deeply painful.
expected to drive Russia into a second Last year, lower oil prices drove the i Julius Baer in negative rates warning
year of recession and after it has ripped share of oil and gas down to 43 per cent The Swiss bank has warned that European Central
a gaping hole in its budget. of budget revenues. It is expected to Bank moves to push interest rates deeper into
Moscow has sold small state company slide to below 35 per cent if crude aver- negative territory could force it to impose charges
stakes over the years but progress has ages $30 per barrel, according to Sber- on private investors’ euro deposits.— PAGE 14
slowed since Vladimir Putin’s return to bank CIB, the investment banking arm
the presidency in 2012. Memories of the of Russia’s largest lender by assets. Research: an enhanced image of human cells in their dividing phase — Alexey Kotelnikov/Alamy i Police arrest Chinese video producer
privatisation wave with which Russia’s The single largest potential source of The former president of peer-generated content at
liberal economic policymakers tried to funds is privatisation. Investors are China’s biggest internet video site and the man
force a transition from the Soviet econ- sceptical about Moscow’s ability to fol- CLIVE COOKSON — LONDON on and off in a newly fertilised editing to human embryos are a behind one of the country’s most catchy pop songs
omy in the 1990s remain traumatic as it low through as the corruption-tainted egg. Scientists elsewhere have team in China. Although the has been arrested, accused of corruption.— PAGE 6
A controversial proposal to use
vastly enriched a small number of peo- sales of state assets in the 1990s have been deterred by the novelty of Chinese scientists said they had
new technology to edit the
ple, creating the country’s oligarch class. sowed a deep distrust of privatisation. Crispr, fear of controversy and no intention of implanting any Datawatch
genes of human embryos — the
The heads of Alrosa, Rosneft and “Any sale at too low prices will expose us lack of a clear regulatory edited embryos in the womb,
first such experiment outside
fellow oil company Bashneft, Russian to suspicions that we’re doing some- framework outside the UK. their research ignited a storm
China — has been approved by Economies with negative
Railways, state bank VTB, Aeroflot and thing like in the 1990s again,” said a gov- The research aims to find out of controversy about introduc- The Bank of
the UK regulator. interest rates
Russia’s largest shipbuilding company ernment official. which genetic processes are ing genetic changes that would Japan’s move to
Sovcomflot were summoned yesterday In 2010, when Mr Putin swapped his Success would not only illumi- essential for the successful pass down the generations. % of global GDP (at market prices) negative interest
to a meeting where Mr Putin discussed presidential post with Mr Medvedev, the nate the mysteries of human growth of an early human Scientists at the Francis Crick of economies with a negative rates last week —
after Switzerland,
privatisation plans for this year with his government pledged to privatise stakes reproduction but also help embryo and to understand how Institute will let the donated central bank policy rate
Sweden, Denmark
economic team. in a smattering of state companies. But researchers develop treat- its cells begin to develop spe- embryos die after seven days. 25
and the eurozone
Privatisation was previously “driven most large planned deals have been ments for infertility. cialist roles before implanta- “As with all embryos used in 20 — means nations
by the intention to adjust the structure delayed until today. The Human Fertilisation and tion in the womb. research, it is illegal to transfer 15 making up almost
of the economy and make it more effi- One person familiar with the thinking Embryology Authority said Crispr allows far more pre- them to a woman for treat- 10 a quarter of world
cient”, said Oleg Kouzmin at Renais- at Rosneft said Igor Sechin, its chief Kathy Niakan and colleagues at cise targeting of DNA than the ment,” the HFEA said. But 5 output now have a
sance Capital. “Now, the issue of raising executive, had insisted no decision had the Francis Crick Institute in genetic engineering methods some religious and secular bod- 0 central bank with
cash as we see a big drop in oil prices has been made. Mr Putin damped hopes of London can use the ultra- used over the past 40 years. But ies oppose any such gene 2014 15 16 a negative policy
become one of the reasons that privati- too ambitious an agenda. precise DNA editing process the only other researchers research, which they see as a Source: FT research rate
sation is back on the agenda.” Tartarstan economy threat page 3 known as Crispr to switch genes known to have applied gene step towards “designer” babies.

Chinese police need diggers to unearth

‘Ponzi scheme’ that took alleged $7.6bn
TOM MITCHELL — BEIJING China, one of the country’s “big four” deposits. At its annual Central Eco-
state lenders, said it had discovered a nomic Work Conference last month, the
Chinese police have arrested more
“risk incident” involving Rmb3.9bn in ruling Chinese Communist party identi-
than 20 people associated with “a com-
funds, which local media said had been fied “excesses” in online lending as a
plete Ponzi scheme” that allegedly took
misappropriated by bank employees to threat to financial system stability.
more than Rmb50bn ($7.6bn) from
Malaysian funds sell up in investors, according to the official Xin-
invest on the stock market. According to Xinhua, Ezubao raised
UK as bribery claims bite Established in 2014, Ezubao was one more than Rmb50bn from almost 1m
hua news agency.
of China’s highest-profile P2P lending investors, some of whom travelled to
Malaysia funds sell i PAGE 6 It is the biggest scam to emerge from sites, promising investors annual Beijing to protest outside government
China’s largely unregulated peer-to- returns of up to 15 per cent. Ding Ning, offices as the company foundered. Mr
peer lenders, part of the country’s its 34-year-old founder, allegedly Ding, who is under arrest, could not be
Austria €3.60 Macedonia Den220 shadow banking sector. Police had to ploughed new investors’ capital into its reached for comment. The P2P lender’s
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 use two excavators to uncover some own real estate projects and also used it risk controller, also under detention,
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 1,200 account books buried deep below to pay off existing investors. was quoted by Xinhua as admitting that
Cyprus
Czech Rep
€3.50
Kc100
Norway
Oman
NKr34
OR1.50 ground, according to Xinhua. P2P lenders are supposed to invest the “95 per cent of [our] projects are fake”.
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 280
Zl 18 The Chinese government, already on money they raise in financial products According to Xinhua, Mr Ding spent
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15 the defensive over its management of issued by third parties such as property some of his company’s capital on lavish
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00
the economy and renminbi, is con- developers. According to industry esti- “gifts”, including a Rmb130m villa in
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
cerned that financial scandals could mates, as many as a third of China’s Singapore and a pink diamond worth
India
Italy
Rup195
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
threaten banking sector stability and 3,800 registered P2P lenders have run Rmb12m, while his younger brother
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
spark widespread public protests. into financial difficulties. Such products was paid more than Rmb1m a month as
Kuwait
Latvia
KWD1.50
€6.99
Switzerland
Tunisia
SFr5.90
Din7.50
Last month, the Agricultural Bank of offer much higher returns than bank a salaried executive.
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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9 770174 736128
2 ★ FINANCIAL TIMES Tuesday 2 February 2016

INTERNATIONAL

Currency concern European Central Bank

EU to probe €500 notes’ terrorism links Draghi says

Brussels’ pledge fuelled by
suspiciously high number
of bills in circulation
JIM BRUNSDEN AND PETER SPIEGEL
BRUSSELS
The €500 note, beloved by gangsters
and Greek savers, is being investigated
for ties to terrorism.
The European Commission will
pledge today to investigate the suspi-
ciously high number of the notes in cir-
culation in the eurozone as part of a plan
to choke-off financing for terrorists in
the wake of November’s attacks in Paris.
“The use of high denomination notes,
in particular the €500 note, is a problem
reported by law enforcement authori-
ties,” according to a draft of the plans
disinflation
seen by the Financial Times. “These
notes are in high demand among crimi-
the ECB’s governing council decided to
keep large value bills in circulation.
the highest value pieces of currency in
the world, equivalent to about £380, or
Financial transfers in virtual curren-
cies are not regulated by the EU, height-
wave adds to
nal elements . . . due to their high value
and low volume.”
According to a study published by
Europol last year, shops often refuse to
$540. It was intended to replicate some
of the large denomination notes availa-
ening the risk that they “may be used by
terrorist organisations to conceal trans-
case for more
The commission will work with
Europol, the EU’s police agency, on the
problem but while the commission can
accept €500 but, nevertheless, they ble in currencies that predated the euro,
such as the DM1,000 bill in Germany,
and similar bills in Austria, Belgium,
fers”, according to the action plan.
One problem is that, although bitcoin
transactions are recorded “there is
stimulus
consider options for curtailing the use
‘These notes are in high Italy, Luxembourg and Netherlands. no reporting mechanism equivalent to
of €500 notes by terrorists and other demand among criminal But the bulk of today’s proposal from that found in the mainstream banking CLAIRE JONES — FRANKFURT
criminals, it is the European Central Brussels will focus on changes system to identify suspicious activity”.
Bank that has exclusive purview over
elements . . . due to their demanded by François Hollande, As a first step, the commission will
Mario Draghi has put forward the case
for another round of monetary easing,
the denominations of euro notes and high value and low volume’ France’s president, who has sought to propose bringing “anonymous currency
signalling lacklustre growth in wages
coins. galvanise the EU’s efforts to combat ter- exchanges” within the scope of existing
and rising concerns about weak infla-
According to one person briefed on account for one-third of the value of all rorism after the Paris attacks, which left European anti-money laundering regu-
tion justified more action by the Euro-
the ECB’s thinking, the problems euro banknotes in circulation. 130 dead and hundreds injured. lations.
pean Central Bank.
around misuse of the €500 bank note ECB data suggest the number of €500 Much like earlier proposals from Brussels will also study whether to
have been under consideration for some notes has grown disproportionately Paris, the commission blueprint will apply other “licensing and supervision The ECB president also set out his views
time and technical work is under way compared with most other denomina- include plans for tighter supervision of rules” to the sector. on Britain’s attempt to renegotiate its
more generally to look at high denomi- tions since single currency notes and bitcoin and other virtual currencies by Other plans include requiring all EU EU membership terms, saying a fix
nation bills. coins entered circulation in 2002. law enforcement authorities and steps nations to have centralised registers of “that would anchor the United King-
The last review was in 2005 when The distinctive purple note is one of to make asset freezes more watertight. bank accounts. dom firmly within the EU while allow-
ing the euro area to integrate further
would boost confidence”.
Mr Draghi dropped a big hint late last
month that his policymakers will inject
Interview. Bernard Tapie more stimulus into the eurozone econ-
omy at their next meeting in March,

‘Symbol of evil’ weighs another reinvention saying the central bank’s governing
council would “review and possibly
reconsider” its policy stance.
A big reason for more action would be
if policymakers think the wave of disin-
meet other loans and Crédit Lyonnais flation caused by the fall in oil prices
Former tycoon considers run
‘ I made the seized the remainder of his assets. Then, risks feeding through to wages and long-
for president but must first in 1995, he was sentenced to eight er-term expectations of inflation in the
mistake of being months in jail over a football match- region.
reprise role in Lagarde case too successful. rigging scandal. Mr Draghi told lawmakers at the
To Mr Tapie, the cause of his troubles European Parliament yesterday that
ANNE-SYLVAINE CHASSANY — PARIS
From then on, Born 1943 in Paris is obvious: senior Socialist party figures what economists dub “second-round

After recently being ordered by a

French court to repay €400m and trig-
gering a scandal that is threatening the
downfall of Christine Lagarde, the Inter-
national Monetary Fund chief, Bernard
Tapie realises that many of his country-
men view him in fairly demonic terms.
“Nowadays, for the socialist govern-
ment, I am the symbol of evil — selfish,
unscrupulous, with an outsized ambi-
tion,” he says, seated on a couch in his
17th century mansion off Saint-Ger-
main-des-Prés boulevard in Paris. “Get-
ting Tapie’s head on a spike is like clear-
ing one’s conscience.”
Mr Tapie’s journey has been extraor-
dinary: from an impoverished youth to
business tycoon, sportsman, television
star, politician, bankrupt and prison
inmate. At 73, he is considering yet
another reinvention — this time as a
candidate in next year’s presidential
elections.
But first, Mr Tapie will reprise his role
as the key figure in Ms Lagarde’s legal
nightmare, which is tainting her cam-
paign for a second term at the IMF and
even raises the possibility of jail.
At issue is a €400m arbitration award
that Ms Lagarde approved in 2008,
when she served as finance minister for
then president Nicolas Sarkozy. The
money was to settle a long-running legal
fight between Mr Tapie and the state-
controlled Crédit Lyonnaise bank that
arose from the disputed sale of Adidas,
his sports company, in the mid-1990s.
Ms Lagarde, who has denied any
wrongdoing, is suspected of “negli-
gence” and will stand trial, while Mr
Tapie, who is under formal investiga-
tion for fraud, was ordered by a court
earlier this month to reimburse his fel-
low taxpayers.
“I’m the opposite of a crook!” he says,
denying that he ever appealed to Mr
Sarkozy, a one-time political ally, for a
favour. He also leaps to Ms Lagarde’s
defence.
“She won’t be convicted,” he says. “I
can tell you that.”
Born in northern Paris to a metal-
that’s it. Early career Made a
Playtime fortune in 1980s buying
was over ’ distressed companies.
Becomes president of
struggling Olympique de
Marseille football club in
1986.
1988 Wins parliamentary
seat. Appointed urban
affairs minister in 1992.
1993 State-owned Crédit
Lyonnais sells Adidas, the
sports equipment maker
Mr Tapie had bought a few
years earlier, on his behalf.
The sale eventually
triggers a legal dispute.
1996 Sentenced to eight
months in prison for
rigging a football match.
2003-2008 Plays
Superintendent Valence in
a French crime TV show.
2007 Backs centre-right
politician Nicolas Sarkozy
in the presidential election.
2008 Granted €400m in
taxpayers’ money to settle
Adidas-related arbitration.
2015 Paris appeals court
declares the arbitration
void and asks Mr Tapie to
repay €400m.
Magali Delporte
worker and a cleaner, Mr Tapie rose to seille football club, broke the transat- leader of the far-right National Front,
fame in the 1980s when he made a for- lantic sailing record and funded a during a televised debate.
tune buying distressed companies, cycling team that won the Tour de But his political career proved short-
turning them round and selling them at France twice. lived. In 1993, facing debt repayment
a profit. He entered politics under the mentor- deadlines, he asked his lender, Crédit
Long before Donald Trump’s Appren- ship of President François Mitterrand, Lyonnais, to sell Adidas. He later chal-
tice, he hosted a prime time TV show winning a seat in parliament under the lenged the sale, alleging that the bank
called Ambition that helped young socialist banner in 1989. His political sold the company at a depressed price.
entrepreneurs set up their businesses. skills were broadcast to the nation when A year later, a court declared Mr
He also bought the Olympique de Mar- he clashed with Jean-Marie Le Pen, Tapie’s holding company unable to
seeking to eliminate him. “I made the
mistake of being too successful. From
then on, that’s it,” he says. “Playtime
was over.”
After jail, he grew closer to Mr
Sarkozy, visiting the centre-right presi-
dent regularly at the Elysée Palace while
moonlighting as the lead character in a
television crime drama.
His bid for the presidency promises
another stage. Running for office while
defending himself from criminal prose-
cution is not an easy feat. But Mr Tapie
believes he can appeal to disenfran-
chised voters and challenge a resurgent
National Front.
If nothing else, he may cause head-
aches for the mainstream candidates:
Mr Sarkozy and Socialist president
François Hollande.
“If that’s true that people hate me so
much, then I’ll do 1 per cent. But maybe
I’ll get 5 or 6 per cent and in this case this
would determine the outcome of the
presidential election.”
His plan to fix youth unemployment
in the suburbs involves enshrining
young people’s “right to a job” in the
constitution, reorienting state-backed
training schemes to meet the job mar-
ket’s needs, forcing the jobless to accept
offers for which they may overqualified
for — all ideas he had formulated as
minister.
Instead of sending random police
officers in shifts to the banlieues, the
impoverished Parisian suburbs that
have become recruiting grounds for
extremists, he suggests training locals to
ensure security.
“When a youngster is being checked
by three different police officers just
because he looks like an Arab, the third
time he’s going to be rude,” he says.
Despite living in apparent luxury,
among old masters’ paintings, crystal
chandeliers and antiques, he says his
modest upbringing gives him an edge.
“I come from those neighbourhoods.
At home, the bathroom was the kitchen
sink and the loo was a bucket. Unlike
many in the political spheres, I know
what I’m talking about.”
effects” were indeed occurring.
“While the most recent wave of disin-
flation is mainly due to the renewed
sharp fall in oil prices, weaker than
anticipated growth in wages together
with declining inflation expectations
call for careful analysis of the channels
by which surprises to realised inflation
may influence future price and wage-
setting in our economy,” the ECB presi-
dent said.
The views of Mr Draghi, who heads
the 25-member governing council, are
at odds with those of other policymak-
ers, however.
While the ECB’s chief economist,
Peter Praet, agrees with Mr Draghi, say-
ing that the fall in inflation expectations
was “markedly disappointing”, others
take a different view.
The ECB’s staff will publish new fore-
casts for the eurozone economy in
March, when they will almost certainly
downgrade their projections for infla-
tion from current estimates of 1 per cent
in 2016 and to 1.6 per cent in 2017. Infla-
tion was 0.4 per cent in the year to Janu-
ary, the highest level since late 2014.
However, the sharp fall in oil prices in
recent months will almost certainly
send inflation into negative territory
later this year.
A prolonged bout of low inflation
could weaken demand, weighing on
wage growth and leading consumers to
delay purchases in the hope prices fall.
Mr Draghi said the central bank’s
quantitative easing package, under
which the central bank will buy around
€1.4tn of mostly government bonds,
and negative interest rates was working.
“Without these measures, the euro
area would have been in outright defla-
tion last year and prices would have
fallen at an even quicker pace this year,”
the ECB president said.
“Growth would have been signifi-
cantly lower.”
Mr Draghi said threats to the euro-
zone’s economy had risen since Decem-
ber because of the slowdown in emerg-
ing markets, financial market volatility
and geopolitical risks.

Regional elections
MAKE A SMART INVESTMENT
Subscribe to the FT today at ft.com/subscription Call to use guns on illegal migrants sharpens German debate
STEFAN WAGSTYL — BERLIN law says.” She added: “I don’t want this ity to cope with so many newcomers. abandoned his caution over immigra-
either, but the use of armed force is But an SPD adviser thought other- tion, and lurched sharply to the right.
A rightwing German politician’s sug-
there as a last resort.” wise, saying: “It won’t damage her at all. The shift came just in time to capital-
gestion that police must “if necessary
In a statement released yesterday, Ms It emphasises very clearly the issue that ise on concern about the late-summer
use firearms” to stop migrants illegally
Petry and her fellow co-leader Jörg Meu- voters care about — law and order on the surge in migration and the outrage over
NOVEMBER 7 2015

crossing the border has sharpened the

then insisted the party was not advocat- borders.” the Cologne New Year’s Eve sexual
national debate over migration ahead
ing any change in the law and was The AfD was founded in the midst of assaults, in which immigrants are the
of key regional elections.
“strictly” against shooting people seek- Europe’s debt crisis as an anti-euro chief suspects.
FINANCIAL TIMES Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco-
R2, 28880 Meco, Madrid. Legal Deposit Number Frauke Petry, the combative co-leader ing “a peaceful entry” into the country. party. Its recent revival is a far cry from “Political developments have played
1 Southwark Bridge,
London SE1 9HL (Deposito Legal) M-32596-1995; Publishing Director, of Alternative für Deutschland, the pop- But political rivals pounced on Ms last summer, when the party was floun- right into our hands,” says Hugh Bron-
Lionel Barber; Publishing Company, The Financial Times
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UAE; Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor But — intentionally or not — they service, which monitors anti-demo- her allies had just driven out Bernd dynamic leader. Born in the Communist
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Tuesday 2 February 2016
Putin’s fury with Erdogan takes
its toll on Tatarstan trade links
Sanctions imposed for shooting down of Russian jet-fighter hit republic’s ties with Turkey
KATHRIN HILLE — KAZAN
In Nizhnekamsk, a gritty town in the
Russian republic of Tatarstan, Almaz
Khaivatov sells dresses, skirts and coats
made in Turkey. But he expects to lose
his job any day.
“We haven’t had any new shipments
this year, and my boss hasn’t been back
from Turkey since November,” says Mr
Khaivatov.
As Russia’s economy has sputtered in
recent months, forcing budget cuts and
sales of state assets, Tatarstan has
remained unusually buoyant. While
Russia’s gross domestic product con-
tracted 3.7 per cent last year, for exam-
ple, Tatarstan’s was flat.
The partly Muslim region in the Rus-
sian heartland has managed to reduce
its dependence on oil and gas revenues
and won top marks from the federal
government for its appeal to investors.
But even Tatarstan’s resilience is
being tested. The cause is not the plunge
in oil prices or western sanctions that
have shaken the larger Russian econ-
omy but Moscow’s sanctions against
Turkey, a key Tatar trading partner.
Since Turkey shot down a Russian
military aircraft on the Syrian border in
November, Russia has suspended its
visa-free regime for Turkish citizens,
cut tourism to Turkish resorts,
restricted Turkish imports, limited new
labour permits for Turkish workers and
threatened to exclude Turkish compa-
nies from new contracts.
Far from easing, there were signs of
fresh tension this weekend when
Ankara accused Russia of again violat-
ing its airspace — a claim denied by Mos-
cow but which is stoking businesses’
fears that the trade war will escalate.
“This is a political fight, but you are
punishing businesses and the people,”
says Naki Karaaslan, head of the Associ-
ation of Russian and Turkish Entrepre-
neurs, a business group in Moscow.
Mr Karaaslan expects Turkish invest-
ment in Russia, much of which ends up
in Tatarstan, to fall by half this year, and
warns that more than 100,000 Russian
jobs depend on Turkish-owned compa-
nies, many of which are at risk.
“We may be able to keep investors
who are here already, but we will not be
able to attract new ones,” says Shamil
Ageev, president of Tatarstan’s chamber
of commerce and industry. “There will
be no growth this year.”
For more than 20 years, Turkish busi-
nesses have been pouring into this
region where half of the population
belongs to an ethnic group that shares
ethnic, cultural and religious roots.
According to the regional govern-
ment, 12.9 per cent of all foreign direct
investment over the past decade came
from Turkish companies.
“The real role Turkey plays for our
economy is even bigger,” Marat Safiul-
lin, vice-rector for economic and strate-
gic development at Kazan Federal Uni-
versity, explains. He estimates that
Turkish companies account for about 15
per cent of all local jobs.
Turkey’s economic impact is evident
at the Alabuga Special Economic Zone,
an industrial park with special tax
incentives located across the river from
the city of Nizhnekamsk.
As much as a quarter of the $3bn
invested in Alabuga comes from
Nigeria Loans sought to fund yawning budget deficit but IMF rescue highly unlikely
MAGGIE FICK — LAGOS
The economy of oil revenue-dependent
Nigeria is ailing, and President Muham-
madu Buhari’s government may get
some relief from the World Bank and
African Development Bank to ease the
pain. Loans totalling some $3.5bn are
under discussion.
Why is Nigeria asking for loans?
The country has been hurting since the
oil price began to sink in 2014, but the
crisis has deepened in recent months.
With the oil price so low, there are no
painless monetary and fiscal policy
choices for Africa’s top crude producer.
Mr Buhari hopes parliament will this
month pass his proposed 2016 budget,
the country’s biggest ever, aimed at
stimulating the economy through huge
outlays for spending on long overdue
infrastructure projects.
Kemi Adeosun, finance minister, is
looking to fund a yawning budget deficit
expected to reach $15bn or 3 per cent of
gross domestic product this year. It will
not be easy. That is why she is in talks
with the World Bank and the African
Development Bank to obtain $3.5bn in
loans. Ms Adeosun strongly insists these
are no emergency loans and says she is
Tatarstan v Russia
Year-on-year growth (%), Jan-Nov 2015
Industrial
production
Tatarstan
Russia
0.1
-3.2
Source: Rosstat * Jan-Sep 2015 ** Jan-Oct 2015
RUSSIA
RUSSIA
Kazan
Yelabuga
Nizhnekamsk
Naberezhnye
TATARSTAN
Chelny
100km
simply funding the deficit in the “cheap-
est way possible”. “It’s my strategy for
borrowing for capital projects,” she told
the FT. But the World Bank does not
make this type of loan in normal times.
Can Nigeria still access markets?
It can and Ms Adeosun still wants to tap
the eurobond market. But Nigeria will
pay dearly for a bond issuance given its
current risk profile, says Lanre Buluro,
head of investment research at the
Lagos-based brokerage Primera Africa.
Mr Buluro estimated yields would be
about 10 per cent, far higher than in
Nigeria’s last debt sale back in July 2013
when it raised $500m of five-year bonds
and $500m of 10-year bonds, at yields of
5.38 per cent and 6.63 per cent respec-
tively. “We have no choice,” he said. “We
can’t print money. The local market
can’t buy all the debt.”
Ms Adeosun said last month the gov-
ernment would finance half the deficit
through domestic bonds and half by
borrowing abroad.
How much are they trying to raise?
Nigeria is looking for $2.5bn from the
World Bank, under its “development
policy” lending. The bank has recently
given similar loans to other oil or com-
★ FINANCIAL TIMES
INTERNATIONAL
Agricultural Real fixed asset
production investment*
3.8 2.9
0.1
-5.8
Turkish companies, says management.
The Tatarstan authorities are deter-
mined to protect all this. “We cherish
our close and friendly economic ties
which have grown over many years, and
we cannot give them up,” says Taliya
Minullina, chief executive of the repub-
lic’s investment agency. Under heavy
lobbying from Kazan, Moscow has pub-
lished a “white list” of 64 Turkish com-
panies exempt from the restrictions. All
of the Alabuga zone’s Turkish tenants
are on it.
Drawn by the cheap rouble, which hit
a record low against the dollar last week,
Kastamonu is doubling its investment
to open a second production line for
fibre boards used in furniture and floor-
ing. The company is betting that its
products will replace Chinese and Euro-
pean imports on the Russian market.
But beyond such large companies, the
fabric of bilateral economic relations is
modity producing nations: Angola, Iraq,
Kazakhstan and Colombia.
Nigeria wants a parallel loan worth
$1bn from the ADB and is looking to tap
export credit agencies “such as China
ExIm Bank due to their concessionary
interest rates”, the minister has said.
How deep a hole is Nigeria in?
The International Monetary Fund reck-
ons the economy grew by 2.8-2.9 per
cent in 2015 and predicted it would
accelerate slightly to 3.25 per cent
growth this year. That is down from an
average 6.8 per cent growth in the dec-
ade to 2014.
The country’s reputation as a frontier
Kemi Adeosun: finance minister
wants to tap the eurobond market
CPI inflation Real household
income**
15.8
13.0
-7.0
being torn to shreds by the sanctions.
“What are 64 companies compared
with almost 2,000?” asks Mr Karaaslan.
He complains that the vague nature of
Moscow’s sanctions decree has
prompted many bureaucrats in Russia’s
regions to implement them as strictly as
possible, resulting in crackdowns that in
effect kill small businesses.
This is clearly felt in the towns of
Yelabuga and Nizhnekamsk, not far
from the Alabuga zone. Echoing Mr
Khaivatov’s worries, local travel agents,
translators, drivers and hotel staff say
the flow of Turkish visitors has noticea-
bly thinned.
“If this continues, the Tatarstan gov-
ernment will be a lot less co-operative
and more assertive in its relations with
Moscow,” an official in Kazan predicts.
That matters because Tatarstan is one
of the few, if not the only, regions in Rus-
sia to which federalism applies not just
market investment destination has suf-
fered since Mr Buhari took office,
largely because foreign investors and
the local business community think the
unorthodox measures adopted by the
central bank are exacerbating the
impact of low oil prices. Capital controls,
including import restrictions, have
choked the foreign exchange market,
reducing liquidity.
The president has repeatedly backed
these measures and has described the
naira as appropriately valued, a move
that, analysts say, brings the independ-
ence of the central bank into question.
Although Nigerian economists and
businesspeople say the goal of the poli-
cies may be sound — to reduce reliance
on imports — in the short term they act
as a further drag on the economy.
Will Nigeria end up with an IMF
bailout?
Highly unlikely. Mr Buhari clashed with
the IMF when he ran the country as mil-
itary ruler from 1983 to 1985. He was
toppled in a coup amid a public outcry
over the conditions the IMF wanted to
impose in exchange for loans after Mr
Buhari’s attempts to halt the currency’s
decline through import restrictions
failed. His opposition to IMF conditions
A woman is reflected
in a puddle in Kazan
in this photo rotated
180 degrees
Kirill Kudryavtsev/AFP/Getty Images
E
SAL
Retail
trade
-4.0
-9.2
-12.8
in name. As the largest partly Muslim
region in the Russian heartland, it also
plays a key role in preserving political
stability. When Moscow reorganised
relations with the Russian regions after
the collapse of the Soviet Union with a
federation treaty, Tatarstan and Chech-
nya refused to sign. While war ensued in
Chechnya, Tatarstan agreed to become
a member of the Russian Federation
under a separate bilateral treaty.
Even as Mr Putin has greatly reduced
regional governments’ powers over the
years, Tatarstan leaders have retained
their clout. But so far, Mr Putin is not
showing any appetite for moderation.
Last week, he threatened to expand
restrictions on Turkish companies.
Claiming that Turkish companies had
bagged a total of $50bn in construction
contracts in Russia over the years, Mr
Putin encouraged Russian businesses to
grab their piece of the pie.
means his government will probably do
everything possible to avoid a rescue.
What about the exchange rate?
One big question is whether multilateral
institutions would provide loans with-
out Nigeria agreeing to devalue the
naira and loosen capital controls, as rec-
ommended by IMF chief Christine
Lagarde.
Although the World Bank makes a
loan independently of the IMF, under its
processes it still needs the fund’s
endorsement of a country’s economic
policies to go ahead with it.
The IMF has criticised Nigerian mon-
etary policy, much as it did in the 1980s
during Mr Buhari’s rule, but the presi-
dent is staunchly defending the central
bank’s actions. Mr Buhari said last week
he remains unconvinced that devaluing
the naira is in the best interests of Nige-
rians, particularly the poorest citizens.
Most economists, analysts, investors
and Nigerian business figures say the
macroeconomic fundamentals show
devaluation is inevitable. Many argue
that putting it off any longer will cause
greater damage.
Additional reporting by Shawn Donnan in
Washington
Editorial Comment page 8
3
Junk fears
South Africa
finance
minister vows
to protect
credit rating
ANDREW ENGLAND AND
DAVID PILLING — PRETORIA
South Africa’s finance minister has
pledged to defend the country’s credit
rating and avoid the damaging conse-
quences of Africa’s most industrialised
nation slipping to junk status.
A downgrade would raise the cost of
borrowing for the government, trigger
outflows of funds from its bond mar-
kets, weaken the rand and lead to the
downgrading of the country’s banks at a
time many consider to be South Africa’s
toughest economic period since its tran-
sition to democracy 22 years ago.
The threat of a credit rating down-
grade to subinvestment looms large
after Standard & Poor’s changed its
South Africa outlook from stable to neg-
ative in December on its rating, which is
one grade above junk status.
“The consequences of [any] down-
grade are well known, both within the
Treasury and now within govern-
ment . . . we make no secret of it,”
Pravin Gordhan, the finance minister,
told the Financial Times. “We are very
committed to restoring credibility in
our fiscal path.”
Mr Gordhan was reappointed finance
minister in December after President
Jacob Zuma sent shockwaves through
financial markets by appointing an
unknown backbencher to the post until
he reversed his decision four days later.
The mishandling of the events running
up to Mr Gordhan’s reinstatement have
threatened to harm the hard-won credi-
bility of South Africa’s Treasury and is
deemed by many observers to have
heightened the risk of a downgrade.
Mr Gordhan, who was respected dur-
ing a first period as finance minister
from 2009-2014, said the government
and the ruling African National Con-
gress had “a very profound and practical
commitment to further fiscal consolida-
tion,” as well as creating a “more
dynamic growth path”.
‘We want to navigate a
path which will enable
us to take on board what
the rating agencies feel’
“Finance ministers, in particular, are
very good at not wasting crises, and in a
sense, focusing the mind, both within
government and outside, on the neces-
sity to do the fiscally correct things,”
said Mr Gordhan.
Mr Gordhan is under pressure to
deliver an austere budget later this
month. He is expected to outline meas-
ures to raise additional revenue and cut
government spending under the watch-
ful eyes of rating agencies and investors.
“We want to navigate a path which
will enable us to take on board what the
rating agencies feel, but that is not going
to be the sole determinant of what we
do,” Mr Gordhan said. “Every enter-
prise, including the state, has fat in the
system which, when the time comes,
you will have to attend to and make sure
you can trim.”
Last month, the International Mone-
tary Fund slashed its 2016 South Africa
growth forecast to 0.7 per cent from 1.3
per cent, which would be its lowest level
since the 2009 recession.
Government debt has increased from
20 per cent of gross domestic product in
2008, to 47 per cent, while the Treasury
is battling twin fiscal and current
account deficits.
The central bank, meanwhile, raised
interest rates by 50 basis points last
week as it sought to stem inflation,
fuelled largely by the dramatic fall in the
value of the rand over the past year, as
well as by a serious drought that had
pushed up food prices.
The twin challenges of deteriorating
growth and rising inflation in a country
plagued by chronically high levels of
unemployment and widespread pov-
erty, highlights the extent and complex-
ity of the task facing Mr Gordhan.
Mr Gordhan took a swipe at the rating
agencies, saying they needed “to seri-
ously reflect on their pro-cyclical char-
acter”, implying they were too quick to
downgrade at the first sign of trouble.
“They need to have some sense of
social and historical context: where do
we come from and what are indeed the
kind of structural challenges that this
government is trying to cope with,” Mr
Gordhan said. “In the past 20 years, has
the ANC government not kept its fiscal
promises?”
Jabu Mabuza, executive chairman of
Sphere Holdings and one of the coun-
try’s most prominent businessmen, said
it was crucial South Africa avoided a
credit rating downgrade.
“Pravin has got a big job to do. His
main job is how to avoid a ratings down-
grade. That would be the final nail.”
4 ★
‘Safe harbour’
Tech groups face more scrutiny on data transfers
Austrian student who won
court ruling makes fresh
series of complaints
DUNCAN ROBINSON — BRUSSELS
Apple, Microsoft and Google could face
fresh scrutiny of the methods they use
to transfer data across the Atlantic amid
a fresh bout of complaints from the Aus-
trian law student who brought about the
demise of a crucial transatlantic data-
sharing arrangement.
Companies tried to come up with
alternative methods of moving personal
Millennials’ home ownership hopes fade
Third of those aged 18-34 live
with their parents, a higher
rate than in the last recession
ANNA NICOLAOU — NEW YORK
After graduating from university in
2005, Rick Spies thought he would fol-
low in his parents’ footsteps into Ameri-
can adulthood by buying a condo on the
outskirts of Alexandria, Virginia, a
wealthy area near Washington. In the
subprime era, a mortgage for 10 times
his $30,000 salary was easy to come by,
and house prices were soaring.
A decade later Mr Spies has three
children and has traded his think-tank
job for mortgage marketing. But instead
of his own house, he lives in his parents’
property in Colorado: buying a home
now feels hugely risky “short of winning
the Powerball and paying cash for it”,
he says.
He is not alone. The US home owner-
ship rate among those aged 18-34 — who
represent the population’s biggest age
group — is at its lowest since 1982.
Nearly a third of “millennials” live with
their parents, a higher rate than in the
depths of the economic recession seven
years ago, and the most since the US
Census began tracking it in 1968.
Like many of his generation Mr Spies,
in his mid-30s, is a child of the subprime
mortgage crisis. After leaving his job
and falling behind on mortgage pay-
ments, he sold his house in January
2008, dodging the worst of the market
crash. Mr Spies says his credit score is
still so low that it would be hard to find a
lender now, even though he longs for a
home “more permanent than squatting
in my parents’ property”.
The dearth of millennial home buyers
is a puzzle for economists. Young adults
were among the hardest hit by unem-
ployment during the recession, but the
economy has since roared back. The
unemployment rate for US millennials
has fallen by nearly 5 percentage points,
about the same improvement as that of
the broader population, to 7.7 per cent
last year.
“We thought that as the job market
improved, fewer of them would be living
with their parents. But it hasn’t hap-
pened,” says Richard Fry, economist at
the Pew Research Center. “So there’s
something else going on here.”
Economists are not the only ones
mystified by millennials. For years com-
panies have strived to understand the
preferences of a group that is set to
data from the EU to the US after the
European Court of Justice last October
invalidated the “safe harbour” agree-
ment that existed between the two fol-
lowing a complaint about potential pri-
vacy breaches from Max Schrems.
Data protection chiefs from across the
EU are set to meet in Brussels today and
tomorrow to decide how aggressively to
examine the workarounds.
Meanwhile Mr Schrems, who in 2014
filed the original case against Facebook
that led to the downfall of “safe har-
bour”, is set to launch complaints
against Microsoft, Google and Apple to
find out if they are breaking any rules in
US society. ‘American dream’
Millennials are set to inherit $30tn in
the next few decades but, beneath
the hyperbole, their outlook is
blurrier and the health of the US
economy is complicated — RJ Sangosti/The
Denver Post/Getty
Millennial homeownership
continues to fall
Households headed by those
younger than 35 (%)
44
42
40
38
36
34
1982 90 2000 10 14
Source: Pew Research Center
FINANCIAL TIMES
INTERNATIONAL
the way they handle data. He has
already filed a complaint in Ireland
against Facebook’s use of similar worka-
rounds. Critics say that these methods,
which often rely on “standard contrac-
tual clauses”, suffer from the same flaws
as the original “safe harbour”, which
was used by more than 4,000 compa-
nies as a legal basis to transfer personal
data from the EU to the US.
Judges at the ECJ struck down“safe
harbour” in the wake of Edward Snow-
den’s revelations about covert US mass
surveillance programmes. The ruling
cited a lack of available guarantees that
the data of EU citizens had appropriate
inherit $30tn in the next few decades.
Surveys have described them as entitled
and glued to their smartphones, but also
health-conscious, vulnerable and opti-
mistic.
Beneath the hyperbole, the outlook
for millennials is blurrier, and behind
the headline numbers the health of the
US economy is complicated.
First, the recovery has been uneven,
with robust hiring and a stock market
rally mired by record inequality and a
shrinking middle class. “People aren’t
doing quite as well as the unemploy-
ment rate suggests,” says Chris Mayer,
professor at Columbia University. “The
idea of the college degree guaran-
tee . . . has not been what millennials
hoped it would be.”
As the rise of the so-called gig econ-
omy spurred more freelancing and part-
time jobs, it also made the nature of
work less stable. Josh, a 24-year-old
computer programmer who declined to
give his last name, says he is lucky that
his craft is in high demand, but that
among his friends “it seems as if people
Industrial output
Big China steel producers suffer $9.8bn losses
CHRISTIAN SHEPHERD AND
TOM MITCHELL — BEIJING
A sharp reversal in China’s steel indus-
try has led to more than half of its big
producers reporting losses last year.
Member companies of the China Iron
and Steel Association (Cisa) suffered a
combined loss of Rmb64.5bn ($9.8bn),
compared with profits of Rmb22.6bn in
2014.
The country’s steel industry, which
accounts for more than half of global
production, contracted for the first time
in almost 35 years in 2015, with raw steel
production dropping 2.3 per cent — the
first fall since 1981.
Steel demand is wilting as construc-
tion and heavy industry stutter, a slow-
down highlighted yesterday when
China’s official manufacturing purchas-
ing managers’ index for January fell to
49.4, from 49.7 in December.
PMI readings below 50 indicate a fall-
off in activity.
Li-Gang Liu, China chief economist at
ANZ, said the reading suggested “the
contraction in the manufacturing sector
became more entrenched”. Mr Liu
noted that year-on-year steel output fell
safeguards to protect them from US spy
agencies. Although European Commis-
sion officials have repeatedly said that
the new methods used by companies
were legal and secure, their future legal
status has led to concern among busi-
nesses reliant on transferring data from
the EU to the US. One lawyer said the
legal purgatory had triggered “panic”
among businesses.
Negotiators in Brussels and Washing-
ton have failed to come up with a new
“safe harbour” arrangement, with peo-
ple close to the discussions suggesting
talks could drag on until the end of the
week, according to two people familiar
are taking whatever jobs they can get”.
He worries about locking himself into
one region and being unable to find
a job.
Many millennials are saddled with
student debt, with sizeable monthly
payments making it difficult to save for
a home or build credit. About seven in
10 new university graduates had stu-
dent loan debt last year, averaging more
than $30,000 per borrower.
Even among millennials who can
afford buying a house, coming of age in
the Great Recession has left them more
guarded and detached. This generation
is more reluctant to switch jobs than
baby boomers, according to Pew data.
Frothy property prices, propped up
by the strong labour market and low
rates, have priced millennials out of
home ownership in several cities across
the US. And as more people opted to
rent rather than buy, rents have likewise
soared in some metro areas, eating away
potential savings for a home.
Economists are questioning whether
the millennials’ shift away from home
12 per cent in both December and early
January.
The National Bureau of Statistics
attributed the steeper than expected fall
on the government’s campaign to
reduce industrial overcapacity, espe-
cially in the steel and coal sectors, as
well as a spillover effect from the lunar
new year holiday. The holiday begins on
February 7 and companies often sus-
pend activity weeks in advance.
China’s economic slowdown hit
domestic steel demand hard in 2015,
Machinery sits idle in an abandoned
steel plant in north-east China
with the situation. Any new deal would
have to be approved by national capitals
and MEPs. Data protection regulators
across the EU had agreed to hold off any
investigation until the end of January.
US officials have been in contact with
European capitals in a bid to ensure
national regulators will not use the fail-
ure to reach a new deal as a trigger for
the continent’s more aggressive data
protection agencies to go after large US
tech groups.
Google, Apple and Microsoft did not
respond to requests for comment.
Negotiations, which dragged on
throughout the weekend, had been “dif-
ownership may become a structural,
rather than cyclical, change. This is evi-
dent in Europe, economists at Goldman
Sachs say, where social acceptance of
young adults living with their parents
has bred a long-term shift, while in the
US, computer programmer Josh says
that living with parents is becoming
“the new normal”.
Meanwhile, the real estate industry
continues to bet that millennials will
storm the housing market eventually,
even as previous predictions have “not
lived up to expectations”, says Kyle
Hisock, a New York real estate agent.
Executives point to surveys that show
the majority of young adults say they
plan to buy a home in the coming years,
signalling they have not given up on the
“American dream”, although it remains
to be seen if this will materialise.
Mr Spies has similar goals. While he
“still feels his face burning” every time
someone asks about his living situation,
he says he plans to move into his own
place in the next few years.
“We shall see,” he says.
with steel-intensive industries, includ-
ing the once-resilient property sector,
unwilling to launch new projects in the
face of overhanging inventories.
Cisa, blaming industry losses on
plummeting domestic prices, said its
price index fell more than 30 per cent
over the course of 2015.
Mill closures remain unlikely despite
the losses, however, in part due to fears
that the subsequent mass job losses
could lead to social instability.
The closure of so-called zombie com-
panies alone could mean 400,000 lay-
offs, according to a recent speech by Li
Xinchuang, head of the China Metallur-
gical Industry Planning and Research
Institute.
Faced with these issues, ramping up
export volume remains the industry’s
chosen palliative for overcapacity.
China’s steel exports grew more than
20 per cent in 2015 to 112m tonnes.
The flood of Chinese steel is stoking
trade protectionism as companies in
other parts of the world struggle to com-
pete with Chinese prices. In 2015,
37 cases were filed against Chinese steel
producers, most on anti-dumping
grounds.
Tuesday 2 February 2016
ficult”, according to commission offi-
cials. A deal was supposed to have been
struck last summer but has been repeat-
edly delayed. Both sides have attempted
to come up with methods of giving EU
citizens the same or similar rights to
those enjoyed by US citizens when it
comes to receiving recompense for spy-
ing by US intelligence agencies.
But while the ECJ insisted that the
“fundamental rights” of EU citizens
must not be violated, US officials have
proved equally reluctant to dilute the
powers enjoyed by the country’s intelli-
gence services.
John Thornhill page 9
Capital markets
Argentina
resumes talks
with holdout
creditors after
loan agreed
BENEDICT MANDER — BUENOS AIRES
Argentina resumed debt talks with a
group of US hedge funds yesterday
after securing a $5bn loan from Wall
Street banks last week that will
strengthen its hand in negotiations to
end a decade-long legal dispute.
In a meeting in New York, finance secre-
tary Luis Caputo, a former JPMorgan
executive, was due to present an offer to
the so-called holdout creditors, who
rejected restructuring deals after
Argentina’s 2001 default and won a legal
victory in the US in 2012 that ruled that
they should be repaid in full.
The bridge loan to Argentina’s central
bank, which confirmed on Friday that
foreign exchange reserves had jumped
to more than $30bn, is another sign of
investor confidence in the new market-
friendly government of Mauricio Macri.
HSBC, JPMorgan and Santander con-
tributed $1bn each, while Deutsche
Bank, BBVA, Citibank and UBS all lent
$500m at an interest rate of about 6
points above the Libor rate.
The dispute with the holdouts is pre-
venting Argentina’s return to the inter-
national capital markets. Reaching an
agreement with the creditors led by US
billionaire Paul Singer’s Elliott Manage-
ment would put an end to Argentina’s
second default this century in 2014,
when the holdouts’ legal victory in the
US prevented Argentina from continu-
ing to service debt to holders of restruc-
tured debt.
An agreement could lead to upgrades
by credit rating agencies and Argen-
tina’s inclusion in emerging market
bond indices. JPMorgan last week
removed South America’s second-larg-
est economy from its “frontier” market
index.
“The most important credit con-
straint for Argentina remains its unre-
solved default resulting from the ongo-
ing legal proceedings in the US. A resolu-
tion of the legal proceedings with hold-
out investors that would allow
Argentina to freely access international
capital markets would be a strong credit
positive for the country,” said Gabriel
Torres, a senior sovereign analyst at
Moody’s, the credit rating agency.
Mr Macri, who attracted huge interest
from investors at the World Economic
Forum in Davos last month, has made
solving the legal dispute a central part of
his economic reforms, which included a
30 per cent devaluation in the overval-
ued peso in December after lifting strict
capital controls in place since 2011.
Last week, the centre-right govern-
ment also began removing costly elec-
tricity subsidies, with prices for con-
sumers set to multiply by more than six
times.
The previous populist government of
Cristina Fernández de Kirchner pre-
sided over some of the cheapest electric-
ity prices in the world, pushing the fiscal
deficit last year to almost 8 per cent of
gross domestic product.
Nearly 3 per cent of GDP has been
ploughed into subsidising domestic
energy consumption, with electricity
bills for many households costing as lit-
tle as $3 a month.
Any agreement with the holdouts will
then have to be approved by the opposi-
tion-dominated congress, with delicate
negotiations with the divided Peronist
movement expected to follow. Despite
his tough economic reform programme,
Mr Macri, who was previously mayor of
the city of Buenos Aires, enjoys approval
ratings of 71 per cent after his first
month in office, according to Poliarquia,
a local pollster.
The holdouts’ own bonds had a face
value of about $6bn in 2001, but accu-
mulated interest means that the value
of Argentina’s holdout claims is now
estimated to be more than $20bn.
Tuesday 2 February 2016 ★ FINANCIAL TIMES 5
6 ★
Donors’ conference
Jordan appeals for aid to cope with Syrian refugees
Kingdom is prepared to
allow newcomers to work
in exchange for $1.6bn
JOHN REED — AMMAN
Jordan is prepared to allow tens of thou-
sands of Syrians to work in the king-
dom, the country’s prime minister said,
if the international community agrees
to extend billions of dollars worth of aid
for its economy, which is buckling under
the burden of hosting more than 1m ref-
ugees.
Abdullah Ensour made the remarks
ahead of a donors’ conference on Syria
in London on Thursday, at which Jordan
will ask for $1.6bn over three years to
State investors
Malaysia funds sell London property stakes
For sale
MICHAEL PEEL — BANGKOK
JUDITH EVANS — LONDON
Malaysian state investment funds are
cashing out of lofty positions in the
London property market, in a sign of
the country’s growing financial woes as
it grapples with claims of multibillion-
dollar corruption involving govern-
ment companies.
The health of Malaysia’s state sector is
coming under growing scrutiny after
Swiss authorities last week said an
investigation into bribery allegations
linked to the 1MDB investment
fund had thrown up “serious indica-
tions” that $4bn had been misappropri-
ated from government businesses.
At least three funds active in London
property appear to have some exposure
to 1MDB’s multibillion-dollar debts,
although there is no evidence of wrong-
doing at any of them. All face calls from
the government to invest more at home
to jump-start growth after the plunge in
world oil prices and the value of the
Malaysian ringgit.
The London property investors are
Video website
China pop hitmaker accused of corruption
CHARLES CLOVER — BEIJING
The man behind one of China’s most
catchy pop songs was detained by
police yesterday after Youku Tudou,
his former employer and the country’s
largest internet video site, accused him
of corruption.
Lu Fanxi, former president of peer-
generated content at Youku Tudou, was
famous for producing popular content
including Little Apple, a much played
but critically panned hit.
Drawing comparisons with South
Korean pop star Psy’s “Gangnam Style”,
the song has grown into a viral internet
meme and also became the basis
for a People’s Liberation Army recruit-
ing video.
Mr Lu left Youku last July in unclear
circumstances, months before the plat-
form was taken over by Alibaba, the
ecommerce group.
An internal letter sent to employees
fund its overstretched schools, health-
care and other services.
The UK has been among those cham-
pioning the idea of allowing more Syri-
ans to work in Jordan to help support
their families and contain the exodus of
refugees from countries neighbouring
Syria travelling to Europe.
Some refugees registered in Jordan
have turned up in Europe in recent
months, according to the UN High Com-
missioner for Refugees, because of cuts
to their food rations and the lure of find-
ing employment. Most are barred from
working legally in Jordan.
Mr Ensour said Jordan might provide
jobs for up to 150,000 Syrians over sev-
eral years — but only if donors agree to
its request for a “holistic” aid plan for
also taking the chance to bank big gains,
as evidence mounts that prices for com-
mercial buildings are coming off highs.
“It’s no secret that Malaysian
funds . . . are having to repatriate
money. We’ve definitely seen a trend of
them selling,” said Richard Divall, head
of cross-border capital markets at Col-
liers, the real estate advisers. “But they
got into London very, very early [after
the financial crisis] so they are making
huge profits.”
Malaysian institutions invested par-
ticularly heavily in London property
from 2010 to 2012, highlighting both the
market’s attractiveness and the ties
between Southeast Asia’s third-largest
economy and the UK, the former colo-
nial power.
Malaysian funds have spent £2.4bnon
London commercial property since 2011,
accordingtoRealCapitalAnalytics,areal
estatedatacompany.
But a symbol of the turning tide is the
sale under way of 88 Wood Street by the
Kumpulan Wang Persaraan pension
fund. Kwap paid £215m in 2013 for the
18-storey City of London office building
by Heyi Film, Youku’s film studio, and
published in the Chinese press, said the
allegations against Mr Lu arose from an
audit of Youku finances that “found
some points of serious suspicion in cer-
tain production projects”.
“From the information we have now,
The ‘Little Apple’
song has drawn
comparisons with
popular track
‘Gangnam Style’
by Psy, right
we know that former employee Lu
Fanxi is suspected of exploiting his posi-
tion to take illegal and criminal activi-
ties,” the company said. “Lu has been
taken away by the police to help with the
investigation.”
A person with close ties to the online
video industry said the allegations arose
from suspicions that Mr Lu had col-
FINANCIAL TIMES
INTERNATIONAL
the refugee crisis that will address its
own citizens’ needs too.
“It has to be a win-win,” Mr Ensour
told the Financial Times in an interview.
“It has to expand job opportunities for
Jordanians [too]; it can’t be one-sided.”
Jordan’s government — having
watched its bigger regional neighbour
Turkey secure a €3bn aid deal from the
EU last year to help it contain the flow of
refugees — will be going to London with
a long list of requests.
Jordanian census data published at
the weekend showed that it was hosting
1.27m Syrians, in a country with a total
population of 9.5m. Of these, about
630,000 are registered with the UN, and
most live outside refugee camps along-
side Jordanians.
Charlie Bibby; Alamy
designed by Lord Rogers’ architecture
practice.
Kwap had already last year raised
£210m from the sale of One Sheldon
Square in Paddington, which it owned
jointly with the Malaysian state
Employees Provident Fund, according
to RCA. EPF is marketing the Fleet
Street headquarters of Freshfields
‘They got into London
very, very early so they are
making huge profits’
Richard Divall, Colliers
Bruckhaus Deringer, which it bought in
2011 for £148m and which the law firm
continues to occupy as a tenant.
Outside the Square Mile, Lembaga
Tabung Haji, the government fund for
Muslim pilgrims, sold an office building
at 151 Buckingham Palace Road in Octo-
ber for about £250m — 22 per cent more
than it paid two years earlier. Other for-
eign investors have started to shift away
from central London commercial real
luded with contracting companies for
kickbacks. The accusations are not
related to any one show.
Mr Lu’s case appears similar to that
of Liu Chunning, an executive at Ali-
baba in charge of video content who was
detained by police last July after an
internal probe by Tencent, his former
employer. Both men were in video pro-
duction and were turned over to police.
The popularity of Little Apple by the
duo Chopstick Brothers helped pave the
way for more peer-generated content to
catch on at China’s online video sites. It
was the theme song to Old Boys: The Way
of the Dragon, a film released in 2014 and
one of the first full productions financed
by Youku Tudou.
Largely because of Mr Lu’s marketing
blitz, as well as repetitive melodies and
simple lyrics, it was an internet hit and
helped popularise a dance form known
as square dancing.
Additional reporting by Ma Fangjing
Together with its promise to allow
some Syrians to work, Jordan is making
a pointed plea that contains an implied
threat: help us more, or face the conse-
quences of further conflict, and more
refugees knocking on Europe’s door.
“There is a limit to how much the
country can take; you don’t want us to
collapse,” Mr Ensour said. “You don’t
want our economic plans, our economic
reform to be disrupted . . . You don’t
want Jordan to be destabilised.”
While the world’s attention has been
focused primarily on the Syrians them-
selves during the refugee crisis, Jordan’s
government is raising the alarm over its
own economy, which it says is going into
reverse on some indicators.
Exports and tourism are down, gross
k £215m
Price paid by
Kumpulan Wang
Persaraan pension
fund for 88 Wood
Street in 2013. The
18-storey office
building is now up
for sale
£148m i national investigation into the Malay-
Price paid by the
Employees
Provident Fund in
2011 for the Fleet
Street HQ of law
firm Freshfields
Bruckhaus Deringer
Not for sale
estate after prices reached record highs.
But the Malaysian move is a reminder of
how events overseas could be worsening
the vulnerability of the London market.
One driver of the sales is the Malay-
sian government’s request for state
institutions including Kwap to provide
capital to help fund a Rm20bn ($4.8bn)
share-buying spree. The programme is
aimed at boosting confidence in an
economy battered by the energy price
fall, high consumer debt and allegations
of misappropriation of money from
1MDB, which the fund denies.
Kwap and EPF had exposure between
them of more than Rm3bn to 1MDB as of
March last year, while Tabung Haji
invested almost Rm1bn in a bond issue
by the fund, according to Malaysian
media reports. 1MDB says its position is
much healthier after it announced bil-
lions of dollars of asset sales over the
past few months to stave off a cash flow
crisis and help cut debt that by 2014 had
ballooned above $11bn. More pressure
on Tabung Haji was revealed by reports
last week that the central bank had
warned the fund its financial situation
Democratic transition
Myanmar’s civilian MPs flock to parliament
MICHAEL PEEL — BANGKOK
Myanmar has made more history in its
transition from military rule with the
launch of its first civilian-dominated
parliament for more than 50 years.
Hundreds of MPs from Aung San Suu
Kyi’s National League for Democracy,
including former political prisoners,
yesterday entered the vast legislative
complex in the military-built capital
city of Naypyidaw.
“Today is a day to be proud of in
Myanmar’s political history and for the
democratic transition,” said Win Myint,
the new lower house Speaker, in his
acceptance speech. A quarter of both
houses in the new parliament are for the
military. But NLD members, swept to
power by the NLD’s landslide win in
November’s elections, have 80 per cent
of the elected seats, enough to give the
party an overall majority.
The party’s strength gives it control
domestic product growth is slowing,
and the country’s debt has climbed to 91
per cent of GDP in 2015, from less than
70 per cent before the Arab Spring.
Diseases Jordan worked to eradicate,
such as polio, have returned with the
refugees. In some communities, ten-
sions have flared between Syrians and
Jordanians over jobs and school places.
“Our entire development model is
being challenged by the spillover of the
Syrian crisis and the turmoil around us,”
said Imad Fakhoury, Jordan’s planning
andinternationalco-operationminister.
Together with its $1.6bn request
for aid, Jordan will be asking donors to
bolster its budget through grants and
low-cost, concessional financing not
currently available because it is ranked
k 12 St James’s
Square
A 19th-century
building belonging
to EPF
40 Portman Square
Central London
offices designed by
the award-winning
architects Squire &
Partners, also owned
by EPF
10 Queen Street Place
City of London
offices, occupied by
lawyers King & Wood
Mallesons. Owned by
Lembaga Tabung Haji
was precarious, because its liabilities
exceeded its assets. Tabung Haji did not
deny being warned, but said its position
was strong and stable.
Tabung Haji made further unwel-
come news last week after it emerged
that Mohamed Apandi Ali, Malaysia’s
attorney-general, had been appointed
as a director. Mr Apandi Ali last week
cleared Najib Razak, the prime minis-
ter, of criminal wrongdoing over $680m
paid by an unnamed foreign source into
his personal bank account.
The national anti-corruption agency
has asked for a review of the decision by
Mr Apandi Ali, who said the money was
a private donation from the Saudi Ara-
bian royal family. The Swiss authorities
have said Mr Najib is not a suspect in
their investigation.
The Malaysian funds and the central
bank did not respond to questions sub-
mitted by the Financial Times.
Malaysian developers remain active
in residential development. But con-
cerns have grown about a further possi-
ble exodus, particularly around the Bat-
tersea Power Station development.
over parliament’s choice of president to
succeed Thein Sein, the former general
who has led the country since the mili-
tary dictatorship stepped down in 2011
after almost half a century in power. But
the military will hold crucial ministries
and have powers to override parliament
under certain circumstances.
Aung San Suu Kyi came in by a side
door and did not make a speech. Her
entrance underscored how she has
shied away from triumphalism despite
the size of her party’s mandate. Many
see this as a strategy to be inclusive and
avoid antagonising a military that
aborted a previous NLD landslide elec-
tion win in 1990.
The NLD is appointing people from
other parties and ethnic minority
groups to some of the four parliament
speaker and deputy speaker positions.
All eyes are now on how Aung San Suu
Kyi will handle high popular expecta-
tions and wield power after her remark-
Tuesday 2 February 2016
as an upper-middle income country.
Jordan is also asking the EU to sim-
plify the “rules of origin” governing its
exports to Europe so that it can create
new jobs in its special development
zones, where investors enjoy tax breaks.
A trade agreement with the US has
boosted investment and exports from
garment factories.
In a sign that Jordan’s position
towards refugees is hardening, authori-
ties have barred entry to a group of more
than 20,000 who are camped out in the
no man’s land at the Syrian border.
Jordanian officials have voiced secu-
rity concerns over the refugees, many of
whom they say come from areas of
north-east Syria that are under the con-
trol of Isis militants.
Monetary authority
Singapore
seizes bank
accounts over
1MDB probe
JEEVAN VASAGAR — SINGAPORE
Singapore has seized a “large number”
of bank accounts over possible money
laundering offences linked to an inter-
sian state investment fund 1MDB,
authorities in the city-state said yester-
day.
In an illustration of the mounting pres-
sure from global regulators on the trou-
bled fund, Singapore confirmed it was
“co-operating closely” with relevant
authorities in Switzerland and the US.
The Swiss attorney-general said on
Friday that there were “serious indica-
tions” that $4bn had been misappropri-
‘Singapore does not
tolerate the use of its
financial system as a
refuge for illicit funds’
ated from Malaysian state companies
and that a portion of the funds was
transferred to accounts held in Switzer-
land.
In a joint statement, the Monetary
Authority of Singapore and the Com-
mercial Affairs Department, the police
unit that investigates financial crime,
said: “Singapore does not tolerate the
use of its financial system as a refuge or
conduit for illicit funds.”
The statement said Singapore author-
ities were “interviewing various individ-
uals” and had sought information from
several financial institutions. Singapore
has also requested information from
counterparts abroad to help in its inves-
tigations.
Singapore disclosed last year that two
bank accounts had been frozen in rela-
tion to an investigation into 1MDB.
Najib Razak, Malaysia’s prime minis-
ter, is chair of 1MDB’s advisory board.
He denies claims of misappropriating
funds. Questions about 1MDB’s business
activities and debts have buffeted his
government over the past year.
Last week, Malaysia’s attorney-gen-
eral cleared Mr Najib of any wrongdoing
over payments of $680m transferred to
his personal bank account, stating the
cash was a donation from Saudi royals.
But the Swiss statement derailed
Malaysia’s efforts to contain the scandal,
describing the suspected misappropria-
tion of funds through a “systematic
course of action”.
able journey from more than 15 years
under house arrest to victory at the bal-
lot box. She is constitutionally barred
from the presidency because her two
sons by her late British husband hold
foreign passports.
Changing the constitution would
require a 75 per cent plus one parlia-
mentary supermajority, meaning that
some military representatives would
have to agree to the measure.
Aung San Suu Kyi has said she will
instead appoint a proxy as president —
some say possibly even her personal
doctor — and make the important deci-
sions herself.
There had been speculation of a last
effort by her supporters to install her in
what many see as her rightful place in
the top job. But an army-run newspaper
appeared to scotch that plan yesterday,
stating that “for the goodness of the
mother country” the constitutional
clause should remain.
Tuesday 2 February 2016
A surge in attacks claimed by Isis — or groups inspired by it — suggests that its violent, ultra-conservative
ideology, shared with other extremist factions, is extending its influence to Asia from the Middle East.
The globalisation of extremism
G
unmen hunting foreigners
kill a Japanese farm expert
in northern Bangladesh
and an Italian aid worker in
the capital Dhaka. Shia
Muslims are targeted in a bomb blast in
Pakistan that kills 24. In Indonesia,
eight people are slain in an assault on
civilians around a Starbucks café at a
Jakarta shopping mall. A bomb
explodes at a popular Hindu shrine in
Bangkok, leaving 20 dead, including
five Chinese tourists.
Terror attacks such as these in recent
months — some claimed by Isis or its
adherents — suggest that the Sunni
Islamist extremist group and its violent,
ultra-conservative ideology are success-
fully extending their influence to Asia
from the Middle East and Europe.
In a world of instant connections via
the internet and social media, the grow-
ing popularity of the Isis brand among
young Asian Islamists should be no sur-
prise. Asia is home to about 1bn Mus-
lims, nearly two-thirds of the world
total, and has undergone waves of radi-
calisation in earlier decades.
The jihad that drove Soviet forces out
of Afghanistan in 1989, backed by the US
and Saudi Arabia, notoriously spawned
the Islamist Taliban regime in Afghani-
stan and Osama bin Laden’s al-Qaeda.
The first decade of the new millennium
saw the Indonesian Bali bombings of
2002, which killed more than 200, and
the attack launched from Pakistan on
the Indian city of Mumbai in 2008.
The fact that it has happened before,
however, only heightens the anxiety
among Asian and western governments
about the latest, continent-wide surge in
Islamist militancy — fuelled as it is by
online recruitment campaigns and
backed by a plethora of local extremist
groups whose leaders are impressed by
Isis and its wars in Syria and Iraq.
A risk analysis by consultancy IHS
said the Isis terror attacks in Paris last
November are continuing to drive south
Asian Islamist factions, including the
remnants of al-Qaeda, the Pakistani Tal-
iban and the Jamaat ul-Mujahideen
Bangladesh, into the arms of Isis.
Such groups would not receive much
direct help from Isis and would rely on
their own capabilities to keep attacking
‘This is the globalisation of
Islamic radicalisation, the
Daesh [Isis] brand . . .
though you still have a
range of local brands’
foreigners, government and military
installations and religious minorities,
Omar Hamid wrote in the report. “How-
ever, due to the enthusiasm generated
by the Paris attacks among jihadis, an
increase in the number of attacks on
these targets is highly likely over the
next six months,” he said.
Western governments are particu-
larly concerned about Russia and cen-
tral Asia, an important source of the for-
eign fighters who join Isis in the Middle
East, and see radicalisation in other
parts of Asia as well. “Asia-wide, it’s
more of a concern than people think for
the governments concerned,” says one
western official. “You’ve essentially had
the globalisation of Islamic radicalisa-
tion, the Daesh [Isis] brand . . . though
you still have a range of local brands.”
The slew of terrorist killings, includ-
ing the Jakarta attacks and the hacking
to death of liberal writers on the streets
of Bangladesh, may finally lay to rest the
notion that Asian Muslims are somehow
less prone to radicalisation than their
co-religionists in the Middle East.
While it is true that Indonesian Islam,
for example, is often coloured by Hindu
and other pre-Islamic traditions, that
has not stopped puritanical Sunni
groups such as al-Qaeda and Isis from
finding eager recruits to murder inno-
cents of any age or religion.
South Asia, with Hindu-majority
India at its heart, is home to millions of
mystical, music-loving Sufis and has
Muslim traditions as varied, tolerant
and syncretic as those of Indonesia. Yet
in Pakistan, nearly 60,000 civilians,
security force personnel and militants
have been killed in terror attacks and
government crackdowns since 2003.
Almost all the victims were Muslims.
Equally, it is hard to think of any
country in Asia — except perhaps the
Himalayan kingdom of Bhutan — that
has not been affected by the rise of Isis
and seen at least some of its citizens
migrate to Syria or Iraq to fight for the
organisation. The Indian Ocean archi-
By Victor Mallet
Regional picture Local groups are being influenced by Islamist networks
Pakistan
Groups include: Lashkar-e-
Jhangvi, Jaish-e-Mohammad,
Tehreek-e Taliban Pakistan
TTP works directly to carry
out attacks as well as through
many affiliated groups; one
intelligence official says LeJ is
trying ‘very hard to become
enrolled in Daesh [Isis]’
Afghanistan
Groups include: Afghan
Taliban, Haqqani network,
Islamic Movement of
Uzbekistan
The government is struggling
to rein in lawlessness, with the
spillover felt in Pakistan to the
south, and central Asia and
China to the north and east
India
Groups include: Indian
Mujahideen
Only a few dozen of the
country’s 170m Muslims are
thought to have travelled to
Syria to fight. But India
detained 14 suspected Isis
sympathisers in New Delhi
last week
Clockwise from top: the aftermath of
a December attack in Parachinar,
northern Pakistan; Indonesia police
secure sites in Jakarta after attacks
in mid-January; and a suspect in
August’s Bangkok shrine attack is
escorted by Thai commandos
Bay Ismoyo, M Saqlain, Christophe Archambault/AFP/Getty Images
The foreign contingent
Extremists active in Syria and Iraq for
Isis or other terror groups*
North America 280
The Balkans 875 The Middle East
Southeast
Asia 900
Former Soviet
republics
4, 700 8,240
5,000
8,000
Western
Europe
Total = 27,995
Source: The Soufan Group * Estimates as at Dec 2015
Indonesia
Tolerant nation wary
of extremist trends
When Isis-linked terrorists launched an
attack on central Jakarta last month,
social media was soon buzzing with
Indonesians eager to condemn violent
extremism and distance their beliefs
from those of the jihadis.
The world’s largest Muslim-majority
country is highly tolerant. Among the
five principles of the Pancasila
founding philosophy of the Indonesian
state is a belief in one God — but none
in particular — and minority groups
have long controlled pockets of the
archipelago, from Hindus in Bali to
Christians in Papua.
★ † FINANCIAL TIMES
FT BIG READ. TERROR
Kabul Islamabad
AFGHANISTAN
PA K I S TA N New Delhi
BANGLADESH
Dhaka
INDIA
Bangladesh
Groups include: Ansarullah
Bangla Team, Jam’atul
Mujaheddin Bangladesh
Ansarullah Bangla Team, an
al-Qaeda affiliate, has killed
liberal writers and atheists
while groups linked to Isis
have claimed responsibility
for a spate of recent attacks
pelago of the Maldives, a destination for
wealthy tourists, is thought to have con-
tributed about 200 Isis fighters, one of
the largest contingents as a share of
national population, according to the
Soufan Group.
Domestic factors
Radicalisation is probably made easier
by the tendency of Asia’s Muslim-ma-
jority governments and societies such as
Malaysia and Pakistan to impose or
adopt progressively more conservative
rules. Neither increased conservatism
nor the novel appeal of Isis, however,
mean that Asian Muslims are a mono-
lithic group fated to become ever more
radical.
An examination of leading Asian
countries shows they are buffeted by an
array of influences, including ethnic
separatism and political disputes as well
as Islamism, religious bigotry and deep-
rooted anti-western sentiment.
North Africa In some, Isis is only the latest actor to
join in long-running extremist cam-
paigns. In Afghanistan, for example,
where a western-backed government
There have been signs of creeping
piety in recent years: a growing number
of young women choose to wear the veil,
more Muslims are fasting during the holy
month, and sharia-inspired laws have
been introduced in several provinces.
Academics say these trends indicate
political corruption and fashion more
than a pronounced shift to radical Islam.
Security analysts, however, say that a
new generation of extremists is emerging,
while pro-Isis fighters returning from
Syria could provide the training needed
to revive local networks.
It was returnees from the Afghan war
in the 1980s that formed Jemaah
Islamiyah. Indonesians became well
accustomed to bomb threats, with an
attack in the country every year between
2002 and 2005, and the bombing of
China
Groups include: East
Turkestan Islamic Movement
Beijing has stepped up its
response to an insurgency in
the northwestern region of
Xinjiang, home to 10m Muslim
Uighurs, since a 2014 knife
attack in Kunming. It blames
such attacks on ‘separatists’
CHINA
THAILAND
Bangkok
M A L AY S I A
Kuala Lumpur
INDONESIA
Jakarta
under President Ashraf Ghani is strug-
gling to ensure security, Isis is vying for
influence with the Taliban, al-Qaeda
and other Sunni groups.
There are signs that established
groups in Pakistan have sought to form
alliances with Isis. Had a militant group
not cited revenge for “the killings of
innocent Muslims in Syria” as the rea-
son for its December 13 bomb in the
mainly Shia town of Parachinar, the
attack would have been just another
example of sectarian carnage. But
Lashkar-e-Jhangvi has for months been
suspected of trying to become a branch
of Isis.
“LeJ is trying hard to become enrolled
in Daesh. They want money and weap-
ons,” says one intelligence official.
India detained 14 suspected Isis sym-
pathisers shortly before the arrival of
François Hollande, the French presi-
dent, in New Delhi last week. With 170m
Muslims India has one of the religion’s
largest national populations, but they
are rarely regarded as extremists and
only a few dozen are thought to have left
for Syria.
hotels in Jakarta in 2009. Since then,
the Detachment 88 special force has
been lauded for arresting well-trained
jihadis, leaving networks fragmented.
Now, though, new leaders are
emerging. Bahrun Naim, an extremist
leader thought to be based in the Isis
stronghold of Raqqa in Syria, is said to
have masterminded last month’s
attack in the capital as part of a
struggle between Asian jihadis eager
to demonstrate their power.
“This kind of competition spells
more violence because it gives an
incentive to the different groups to
outdo one another and show that they
are the most active proponents of Isis,”
says Sidney Jones, a security analyst
in Jakarta. “Isis is now what is binding
everything together.” Avantika Chilkoti
Beijing
Manila
PHILIPPINES
Thailand
Groups include: National
Revolutionary Front
A long-running insurgency by
predominantly Muslim ethnic
Malays has claimed thousands
of lives. Ethnic Uighurs from
China were suspected of
involvement in an August
attack on a shrine in Bangkok
“Most of the Indians whom we know
were attracted to Daesh were brought to
our attention by their own family or
community,” Shivshankar Menon, a
former national security adviser, said in
a recent speech. “What should worry us
is the fact that 10 years ago we could say
proudly that there was no Indian in al-
Qaeda. Today we can no longer say so.”
And in Bangladesh, two strands of
Islamic militancy have been prominent
over the past year. First, a group known
‘I don’t think Isis central is
interested in Southeast
Asia. Indonesians in Isis
based in Syria want to put
the region on the map’
as Ansarullah Bangla Team, an al-Qaeda
affiliate, has murdered five liberal writ-
ers and atheists and circulated a hit list
with many more names. Second, Isis
claimed various shootings and bomb-
ings that killed foreigners, policemen
and Shia Muslims and boasted of “the
revival of jihad in Bengal”.
Last month, Singapore announced it
had arrested 27 Bangladeshi men who
were working on construction sites for
supporting the ideology of al-Qaeda and
Isis.
Meanwhile, Malaysian authorities say
they have frustrated several plots and
are concerned by the number of nation-
als who have gone to fight with Isis. The
ruling United Malays National Organi-
sation has also sought to bolster support
among rural voters by emphasising its
Islamic credentials.
Eager alliance
In short, Isis may indeed have Asia in its
sights. The latest issue of its magazine
Dabiq talks of Islam conquering or
reconquering “the cow-worshipping
Hindus and atheist Chinese” from
“Khurasan”, an imagined Islamic land
7
Philippines
Active groups include: Abu
Sayyaf, Moro Islamic
Liberation Front
There are fears the restive
island group of Mindanao will
‘become a safe haven for
everybody else in the region
fleeing and an arms supplier’,
says a security analyst
Malaysia
Groups include: Katiba
Nusantara
Malaysian authorities say they
have frustrated a spate of
terror plots but are concerned
by the number of nationals
who have left the self-styled
moderate Muslim country to
fight with Isis in Syria and Iraq
Indonesia
Groups include: Jemaah
Islamiyah, East Indonesia
Mujahidin
Despite the recent Jakarta
attack the number of serious
terrorist incidents remains
small. But the authorities fear
that returning fighters could
revive local extremist groups
centred on Afghanistan and western
Pakistan.
But Asia is not yet as important for Isis
as its embattled Middle East heartland
or the temptingly vulnerable and
nearby nations of Europe.
Asian militants, in fact, sometimes
seem more eager to associate them-
selves with Isis than overburdened Isis
leaders are to co-opt them. Isis is only
one of many extremist Sunni groups in
Asia, and its ideologues spend much of
their time attacking organisations such
as the Taliban that are ideologically
almost indistinguishable from itself.
“Extremism is a spectrum in this part
of the world and it is very difficult to
draw the line,” says Sidney Jones of the
International Crisis Group. “I don’t
think Isis central is interested in South-
east Asia. I think Indonesians in Isis
based in Syria are interested in showing
they can put the region on the map.”
Few analysts think Asian countries
face immediate threats to their exist-
ence from Islamist radicals. Indeed, it
was just such a threat to the stability of
Pakistan from its homegrown Sunni
extremists that persuaded the armed
forces to launch operations against the
militant groups they had helped to
establish. Islamabad has, however, been
less willing to abandon the jihadis it
finds useful: those destabilising neigh-
bouring India and Afghanistan.
Like Indonesia and several other
Asian countries, Pakistan can now boast
of some successes in suppressing violent
radicals who want to attack their fellow
citizens. And, with the notable excep-
tion of Afghans and Pakistanis, most
Asians can assume they are as safe as
Europeans from attacks by Isis or its fel-
low extremists. Unfortunately — after
the attacks of Paris, Istanbul, Bangkok
and Jakarta — that is small comfort.
Additional reporting by Farhan Bokhari
in Islamabad, Joseph Allchin in Dhaka,
Michael Peel in Bangkok, Jeevan Vasagar in
Kuala Lumpur and Tom Mitchell in Beijing
8 ★
TUESDAY 2 FEBRUARY 2016
Nigeria calls in the World
Bank to do the IMF’s job
The fund is the agency that should lead the response to the crisis
The latest victim of the fall in oil prices
has called for help. The news that
Nigeria, Africa’s biggest oil producer,
needs $3.5bn in help to plug a $15bn
government deficit is hardly surpris-
ing. A series of hydrocarbon producers,
including Ghana and potentially
Azerbaijan, have been caught by the
downturn in oil and gas revenue and
have brought in the International Mon-
etary Fund to help finance their bal-
ance of payments.
So far, so sadly predictable. The twist
with Nigeria is that it has asked the
World Bank and the African Develop-
ment Bank for loans rather than going
to the IMF. This is understandable but
mistaken. Nigeria’s immediate short-
term problem is a classic balance of
payments and budget deficit issue. The
IMF, which is set up to do crisis lending,
is the right institution to take the lead.
It is easy to see why Nigeria wants to
borrow from development banks
rather than the IMF, and why the
World Bank in particular is so keen to
oblige. Although such loans will
require the fund to approve Nigeria’s
government policies, there is far less
stigma involved in inviting in the struc-
tural engineers from the World Bank to
improve the economic edifice rather
than admitting it is ablaze and calling
in the IMF fire brigade.
From the bank’s point of view, it is
grateful for something to do, given that
its role in longer-term development
finance across the emerging world has
often been supplanted, including in
Nigeria, by lending from China. And
the size of the problem is not, or not
yet, too large for it to take on. Although
some of the revenue from high oil
prices was squandered, Nigeria at least
resisted the temptation to rack up sov-
ereign debt and its current budget defi-
cit, at 3 per cent, is not catastrophic.
It is right that the World Bank con-
tinue to lend to Nigeria if its projects
Britain must not go from
four to three in mobile
EU should take a tough line on the proposed merger of Three with O2
Over the past three years, Europe’s
largest telecoms operators have rushed
to consolidate the mobile industry.
Encouraged by the indulgence of the
regulator in Brussels, they launched a
wave of deals across borders. As a con-
sequence, country after country has
seen the number of networks in its
market contract from four to three.
Germany, Austria and Ireland have
all crossed this threshold, often in the
teeth of opposition from national regu-
lators that understandably fret about
the consequences for pricing. But
because the deals involved suprana-
tional competitors they ended up with
Brussels, which approved them subject
to often feeble undertakings. Now,
under a new commission, the EU has
started to take a tougher line.
In September, Margrethe Vestager,
its antitrust chief, halted plans that
would have put together TeliaSonera
and Telenor, the Danish networks of
the Scandinavian operators. And this
week comes an even bigger test of her
more stringent policy. She will set out
her statement of objections to the plans
of UK rivals, O2 and Three, whose pro-
posed merger would create a company
of 32m customers that will have only
two domestic competitors.
It is no mystery why mobile groups
are keen to tie up. Cost savings and a
lessening of competitive pressure can
do wonders for margins, to the delight
of investors. The effect on customers is
less beneficial. Prices are around 11-25
per cent higher in markets with only
three operators than in those with four,
according to Ofcom, the UK regulator.
To make the public case for deals, the
companies involved stress that the
additional returns they make will be
used to support greater investment,
improving the network and boosting
the wider economy. These claims are
specious, and Ms Vestager has rightly
taken aim at them, most notably in a
can show a return. Having extended
credit to the country for decades, the
bank has nearly 30 projects on the go
and around $6bn in credit outstanding.
No doubt there is more that could be
done. Nigeria has long-term structural
and development needs requiring
investment. Oil income has driven up
the real exchange rate and inhibited
economic diversification. It has also
inflicted huge damage on the quality of
both national and state government,
where politics has all too often involved
a fight to control oil revenues rather
than the conduct of constructive eco-
nomic policy.
But Nigeria’s immediate issue is a
classic balance of payments and fiscal
deficit issue arising from a shortfall in
oil export revenue. That is the concern
of the IMF, which has the financial
instruments, the expertise with condi-
tionality and the credibility to do the
task. The IMF can also require the kind
of fiscal adjustments likely to be neces-
sary if the oil price fails swiftly to
recover a good portion of its recent
losses.
The IMF and the World Bank have
started dealing with what will no doubt
be a string of oil exporters suffering
from a fall in crude prices for which
they are unprepared. The Venezuelan
government, if it can accept that
chavismo has failed and recognise the
shambles it has made of its economy,
looks like a prime candidate for a loan
before long.
It is important that the two official
lending institutions agree a division of
labour based on comparative advan-
tage rather than bureaucratic conven-
ience and borrower preference. That
Nigeria needs short-term balance of
payments support and long-term
development finance seems incontro-
vertible. The World Bank will stay
involved in Nigeria but the IMF is the
right agency to lead the crisis response.
speech last summer. The higher invest-
ment that is supposed to be encouraged
by reduced competition is often impos-
sible to detect. Meanwhile in more con-
solidated markets, steeper consumer
prices and stunted innovation are an
established fact.
There are plenty of reasons why
competition should encourage invest-
ment, not deter it. No one wants to be
left behind if a rival builds a superior
network. Nor is there evidence that
financial constraints are curbing capi-
tal spending.
Ms Vestager should stick to her guns
if she wants to defend a significant
European success story. Declining rev-
enues are in this case a sign that the
market is working. Roaming charges
have fallen sharply, cutting €8bn from
customers’ bills. Returns on capital are
lower but still above US levels. Other
measures of quality, such as data down-
load speeds, are as good, or better, in
the EU.
The planned merger of Three with
O2 deserves unsparing scrutiny.
Ofcom, the national regulator, is firmly
opposed. Three is an excellent example
of how competition can both spur and
reward fresh thinking. Created explic-
itly as an additional operator in 2000 to
hold prices down, it has built a profita-
ble business by innovating. Three was
among the first operators to spot the
importance of the smartphone and to
design products and tariffs to support
its take-up and expansion. It was alone
in offering customers an upgrade to 4G
without charge.
Regulation needs to preserve these
incentives, not smother them by pur-
suing a nebulous policy of promoting
European champions. Ms Vestager
must turn her face away from recent
precedent and insist on the mainte-
nance of four viable competitors. Any-
thing less, and British consumers will
be short changed.
FINANCIAL TIMES
Azerbaijan’s feudal elite seeks help from western taxpayers
Sir, Jack Farchy and Shawn Donnan
report that the International Monetary
Fund and the World Bank are
preparing to shore up the Azerbaijan
economy, which is tottering as the oil
price tumbles (“World Bank and IMF
move to avert defaults caused by falling
oil prices”, January 28). An IMF team is
currently on a “fact-finding” mission at
the Azerbaijan government’s request.
The Organized Crime and Corruption
Project (OCCRP) is wondering what
new “facts” might emerge. For years,
investigative journalists from OCCRP
and elsewhere have observed the first
family and its acolytes dominate
through opaque business practices and
autocratic abuses.
What more must Najib do
to be called ‘successful’?
Sir, Many Malaysians are puzzled by
your newspaper’s recent attack on the
record of our prime minister Najib
Razak and the suggestion that his
leadership of Malaysia has been
“disastrous” (“The threat Najib poses
to Malaysia’s reputation”, editorial,
January 28). This runs counter to the
real, tangible progress that has been
made since the prime minister
assumed office in 2009.
To give just a few examples:
Malaysian gross national income has
grown by 47.7 per cent, 1.8m jobs have
been created, and private investment
in the country has more than tripled
since the establishment of his
Economic Transformation Programme
in 2010. Unemployment has declined
to under 3 per cent — from 3.7 per cent
in 2009 — and Malaysia’s poverty rate
has been cut in half. On the global
stage, relations with both China and
the US have never been better, while
President Barack Obama recently
described Malaysia’s voice as being
“critical in the debate that is taking
place internationally around
terrorism”.
I know the FT sets the bar high, but if
these and many other factual
achievements make him a “disastrous”
prime minister, we wonder what he
would have to do to be considered
successful by your leader writers.
Ahmad Rasidi Hazizi
High Commissioner of Malaysia to the
United Kingdom and Northern Ireland
UK has a healthy distaste
for those who avoid tax
Sir, I found Sir Michael Moritz’s op-ed
in defence of Google’s tax avoidance,
unconvincing and disingenuous
(“Google should be emulated not
berated”, January 29). I’m an American
tech entrepreneur living and working
in the UK, and I don’t share his point of
view. Tax avoidance is clearly a zero-
sum game. The money has to come
from somewhere and Google should
pay its fair share. Aggressive tax
avoidance by one of the world’s largest
and most profitable companies is
obscene. It’s no good trying to justify
bad behaviour by saying it’s legal or
trying to offset it by pointing out the
benefits of its products. And it’s
irrelevant to say that one of the
purposes of its finance team is to
minimise tax bills. Google should be
held accountable for its actions, just
like every other company.
Nor is it a question of choosing
The pampered
pigs and happy
hens set to save
China’s economy
Shanghai
Notebook
by Patti Waldmeir
Letters
A WikiLeaks cable sent from global
intelligence company Stratfor via
SIPRNet, the classified US Department
of Defence computer network,
commented that Azerbaijan is run like
a medieval feudal system: “The
[Aliyev/Pashayev] families also
collude, using government
mechanisms, to . . . create barriers that
only the best connected can clear.”
A low oil price threatens this cosy
arrangement and has sparked popular
protests. This is no small development
given the government’s own hostility
towards an oppressed society. OCCRP
journalist Khadija Ismayilova has just
begun a seven-year jail sentence after
regularly exposing the corruption at
‘I got a bit overenthusiastic and I
broke the emergency brake’
between cracking down on corporate
tax avoidance and encouraging
entrepreneurship. Both are valid and
important and do not conflict. Many
American companies seem not to
understand how Europe differs from
the US in respect to attitudes towards
taxation. America has a ridiculously
complex tax code that encourages
manipulation, as well as a government
that is not trusted by many of its
citizens to spend the money well. And
let’s not forget that avoiding taxes was
one of the principal drivers of
American independence. The UK,
along with a few other European
countries, is healthier in these respects,
so tax avoidance is more distasteful. Sir
Michael, a Brit, should know this.
Perhaps he has been away too long.
Ryan Notz
Chief Executive,
MyBuilder.com,
Surbiton, Surrey, UK
Sir, Sir Michael Moritz’s de haut en bas
defence of the indefensible is the latest
in a long line of output by the great and
good of Silicon Valley extolling the
virtues of their business model
(“Google should be emulated not
berated”, January 29).
But his critique of the EU omits two
important points. We actually like our
social safety nets and proper labour
laws, so if you want to sell your
products here, pay your taxes. And
another reason there are no technology
giants over here is that fewer
Europeans have chosen to invest their
short time on Earth attempting to
become incredibly rich by designing
the latest “app”.
Jonathan Young
Pillerton Hersey, Warwicks, UK
The pigs in Lonely Mountain village
drink only spring water. There are no
doors on their pens so they can come
and go as they please. They eat only
seasonal organic vegetables. When
I visited them recently, one was
sunning herself in a patch of mud
while her porcine mates foraged for
wild foliage or inhaled mountain soil
as part of their health regimen.
A little way down the hill, Lonely
Mountain chickens were pecking
at corn and wilted Chinese radishes
as they contemplated a foray outside
to nab some worms.
These fowl — fortunate enough to be
raised in a remote part of the eastern
province of Anhui — don’t take drugs
to stay healthy. They aren’t fattened
up at high speed and they breathe
healthy Lonely Mountain air all day.
Even the vegetables are lucky: they’re
fertilised with waste from pigs and
chickens rather than chemicals. Like
the livestock, they are watered with
spring water alone.
Beijing is counting on these upper
middle class pigs, affluent chickens
and upmarket veg to make the nation
rich now that widget-making will no
longer suffice. To combat the Chinese
growth slowdown that has rattled
world markets since the start of the
year, the Communist party expects
the masses not simply to spend but
upgrade their tastes to a point where
they are buying more high-margin
items such as Lonely Mountain meat.
It’s often said that China has a
two-track economy, where the old bit
(manufacturing) is faltering and the
the heart of the Aliyev regime — joining
nearly 100 other journalists and
activists behind bars.
Western taxpayers should be
appalled that they are being asked to
fix the problems of the feudal elite.
OCCRP has revealed the regime’s
corruption in exhaustive detail.
Meanwhile, corporate ownership
information has been confidential in
Azerbaijan since 2012. This means
there is no simple way to check who
benefits from any transactions with the
government. These moves are designed
to prevent any public scrutiny or
government accountability. A bailout
without stringent reform will be caught
in the same web of systematic
Boot was on the other foot
after Deepwater Horizon
Sir, John Gapper suggests that
“American politicians are angry at
what some call ‘a direct threat to the
interests of the US’” (“Alphabet and
Apple spell global tax war”, January
28).
Where were those same politicians
when, following the 2010 Deepwater
Horizon tragedy, the US government
played a significant role in the vitriol
and positioning of public debate on BP,
with a White House spokesman
claiming that “the president’s job is to
keep his boot on the throat of the
company”. The resulting statement
from the president himself that “he
had no interest in undermining BP’s
value” was laughable, given BP’s
significant weighting in the pension
funds of many UK investors and their
reliance upon the dividends the
company paid.
I would call that action an equally
direct threat to the interests of the UK.
Terry Mellish
Colchester, Essex, UK
Fracture of the two-party
system would not last long
Sir, Albion Urdank (Letters, January
29) imagines a break-up of the US
party system in which Bernie Sanders
revives the long-dormant Socialist
party and Rand Paul splits from the
Republicans to run on a Libertarian
ticket.
Such a splintering of established
parties would not be wholly
unprecedented in the history of
American politics: the election of 1824
provides an interesting comparison.
The Democratic-Republican party,
for some years previously the only
national political party, was bitterly
divided and failed to agree on a single
candidate. The result was a four-way
contest between John Quincy Adams,
Andrew Jackson, Henry Clay and
William Crawford. Jackson, in some
ways the pioneer of the populist
tradition to which Donald Trump is
heir, won the most votes but lacked an
electoral college majority: Adams was
thus chosen by the House of
Representatives in what became
known as the “corrupt bargain”.
Despite this unprecedented level of
division, the feuding politicians soon
coalesced into two parties, the
Democrats and the National
Republicans (later the Whigs.) There
was no political space for three or four
major parties to coexist. First-past-the-
post voting and the demands of
new bit (consumption and services)
is powering forth, but there’s a split
even within the bit of the economy
that relies on consumption, according
to Boston Consulting Group. Its report
forecasts that, by 2020, 81 per cent
of Chinese consumption growth will
come from households with annual
disposable income higher than
$24,000, which BCG calls “upper
middle class” or “affluent”. The
consultancy expects the number
of such households to double
to 100m within four years. They are
forecast to comprise 30 per cent of all
urban households, compared with
17 per cent at the end of last year and
7 per cent in 2010.
These are exactly the kind of people
who like to know their pigs are
breathing cleaner air, and drinking
cleaner water, than they are
themselves. Beijing has inadvertently
contributed to this market by
facilitating the grievous pollution of
mainland soil and water in the pursuit
of the Chinese industrial revolution,
making food safety one of the most
important issues for consumers.
And, now that ever more shoppers
have the money to avoid the negative
effect of all that pollution on their
food, they are increasingly willing
to drop a dime on doing so. On
Taobao, the online Chinese
marketplace, Lonely Mountain free
range “black pork” fetches roughly
a third more than normal “white”
pork costs in the local food market.
In the run-up to this weekend’s start
to lunar new year — which begins with
Tuesday 2 February 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
corruption. IMF and the World Bank
must avoid siphoning yet more money,
this time from western taxpayers, into
the coffers of a wealthy autocracy.
The Azerbaijan finance minister’s
claim that there is no “urgent” need for
support may well reflect the
underlying strength of the economy,
but it also betrays a desire to avoid a
loan with too many strings attached.
One fact remains: if anyone is in the
best position to belatedly ensure the
economic safety of Azerbaijan’s
citizens, it is President Ilham Aliyev
himself.
Tom King and Marina Bowder
The Organized Crime and Corruption
Reporting Project
national organising both tended, in the
long run, to enforce party cohesion, as
they still do today.
An outcome like the one Dr Urdank
envisions is by no means inconceivable
for the 2016 election; but it is far less
likely that such a fracturing of the two-
party system would prove permanent
or even long-lasting. Although fraught
political moments and the strong
personalities of individual candidates
may break open parties from time to
time, the fundamental forces of
American politics always push them
back into some kind of equilibrium.
David AMcM Wilson
Brookline, MA, US
An enduring curiosity of
the civil aviation industry
Sir, Analysts are a bit hard on Boeing
(“Boeing: technical difficulties”, Lex,
and “Cabin pressure”, report, both
January 28). Its mostly “demand-pull”
production makes it subject to the
larger industry’s economics. Its order
book or book-to-bill ratio is a
traditional valuation guide that should
be at or above 1.0 for several years.
That ratio can cut both ways, however,
as airlines can hesitate to make long-
term commitments when delivery
dates are extended: manufacturers and
airlines are often out of sync in this
regard, which is one reason financial
intermediaries like leasing companies
play a bridge role between them,
focusing on managing supply and
residual value.
This also helps explain why investors
are so obsessed with order books: they
are monetising sales volume of
traditional products, rather than
betting on science and technology per
se, as in computing or pharmaceuticals.
Boeing (and Airbus) are largely
producing and modifying aircraft first
introduced decades ago (they are still
making the “mainframe” or “aspirin”
of aviation).
Why this is so, is an enduring
curiosity of civil aviation. Economic
history may be a guide: when aircraft
technology cycles were fast and
disruptive, government was a sponsor
and risk partner. The Hoover,
Roosevelt and Kennedy
administrations, or in the UK, the
Macmillan government, are examples.
A “concorde” indeed, among public
and private sectors, and among
competitors, may better unlock
aviation’s deep strategic values, distinct
from its production and sales cycles.
Matt Andersson
Indigo Aerospace,
Chicago, IL, US
the most important meal of the year,
nianyefan or new year’s eve dinner —
sales of Lonely Mountain black pork
rose dozens of times over, says farmer
Ah Tu, an IT expert who splits his
time between Shanghai and his native
village. He now does a roaring trade
on Taobao in pigs, chickens, mountain
goats, ducks and other animals raised
in Lonely Mountain.
Ah Tu is not his real name: it’s
a moniker he’s chosen to combine
the Chinese character for earth with
a prefix that suggests he’s a
down-home kind of guy. He’s not as
rustic as all that: during the two days
we spent with him, he was constantly
transacting pork deals on his two
smartphones, sometimes via his
Bluetooth headset. One entrepreneur
called to arrange 200 lots of black
pork to give to employees as a lunar
new year gift. Ah Tu says his biggest
problem is slaughtering pigs fast
enough to keep up with demand.
He’s hoping to lure more of his
customers up to Lonely Mountain
village to get up close and personal
with the pigs they’re buying. In future,
customers shopping at his Taobao
store will know the birthday of their
chosen creature, when it was
slaughtered and what it liked for
breakfast.
Designer handbags may be flagging,
but designer pigs? Maybe that’s what
Beijing means by “the new normal”:
a world where at least the hogs
are healthy.
patti.waldmeir@ft.com
Tuesday 2 February 2016
Britain deserves better than vacuous leadership chatter
POLITICS
Janan
Ganesh
B
ritain’s Conservatives should
have sensed the quest to lead
them was getting out of hand
as early as last October. When
Nicky Morgan publicly envis-
aged herself fronting the party of Win-
ston Churchill and Margaret Thatcher
on the back of 15 nondescript months in
the cabinet, a free-for-all was in effect.
If the education secretary’s presump-
tion seems only normal, it is because we
have chosen to normalise it. Since David
Cameron blurted his intention to step
down as prime minister before 2020,
everything said and done by any plausi-
ble successor has been studied finely for
ulterior motives, as if personal advance-
ment to the exclusion of all else is the
natural way of things.
Real money and real people are
There is no
Brexit from a
Europe in crisis
FOREIGN AFFAIRS
Gideon
Rachman
D
avid Cameron should hurry
up and hold that referen-
dum on British member-
ship of the EU. If the UK
prime minister does not get
a move on, there might not be an EU left
to leave.
Manuel Valls, the French prime min-
ister, said recently that, unless Europe
gets a grip on the migration crisis, “the
European project can die, not in decades
or years but very fast”. Even allowing for
a degree of hyperbole in that statement,
there is no doubt that Mr Cameron is
negotiating with an organisation that is
in grave trouble.
The refugee issue and the threat that
it poses to the EU’s border-free Schen-
gen area is the most obvious emergency.
But it may not even be the most funda-
mental problem. The very basis of the
European idea is that the EU is a com-
munity of democratic, law-governed
states. But the independence of the
courts and media are clearly under
threat in Poland and Hungary, powerful
countries that retain full voting rights
within the union.
The euro crisis has not gone away
either and Greece may well need
another bailout this summer. Germany
The path to enlightenment and profit starts inside the office
INNOVATION
John
Thornhill
C
ompetition used to be easy.
That is in theory, if not
always in practice. Until
recently, most competent
companies had a clear idea
of who their rivals were, how to compete
and on what field to fight.
One of the starkest — and scariest —
declarations of competitive intent came
from Komatsu, the Japanese construc-
tion equipment manufacturer, in the
1970s. As employees trooped into work
they would walk over doormats exhort-
ing: “Kill Caterpillar!”. Companies
benchmarked their operations and
market share against their competitors
to see where they stood.
But that strategic clarity has blurred
in so many industries today to the point
of near-invisibility thanks to the digital
caught up in George Osborne’s work as
chancellor of the exchequer, yet every
austerity measure and corporate tax
settlement is read as a twist in the
screenplay of his career. Whether Brit-
ain remains in the EU is the largest ques-
tion any serving politician will ever
answer but we almost expect Theresa
May, the home secretary, and Boris
Johnson, the London mayor, to decide
on the tawdriest calculations.
Faced with virtually any event in gov-
ernment, neutral scribes, Tories and
even Labour MPs looking for a jaunty
distraction from their own party’s roll-
ing farce are poised with the questions of
a huckster: who gains? What is the angle
here?
If the protagonists are as cynical as we
believe, Britain is in trouble. Ambition
can end up distorting the business of
government, as rivals start to view pol-
icy choices as moves in a card game. The
state becomes a venue for their frivolity.
If they are not — and the stereotype of
politics as a blade-strewn pit of intrigue
is as exaggerated as I, Claudius — it says
something that we would excuse them if
they were.
remains the only nation capable of giv-
ing some leadership to the EU. But the
authority of Angela Merkel, its chancel-
lor, has been badly damaged by the refu-
gee crisis. The Merkel government is,
anyway, increasingly estranged from
eastern Europe over refugees; and from
southern Europe over the euro.
Amid all this, Mr Cameron’s demands
for minor changes in Britain’s relation-
ship with the EU seem almost bizarrely
besides the point. As one German
policymaker fumed to me: “The Euro-
pean house is burning down and Britain
wants to waste time rearranging the
furniture.”
Even more strange is the fact that the
British debate about whether to quit the
EU (Brexit) seems to have barely fac-
tored in the idea that the organisation
itself is in crisis. Both sides — pro and
anti — are deploying arguments that
have hardly changed since the 1990s.
The Brexit crowd claims that Europe is
proceeding headlong towards a federal
state, ignoring the fact that it is in much
greater danger of disintegration. The
pro-EU camp stresses the virtues of the
single market while trying to avert their
eyes from the horrible political mess
unfolding on the other side of the Eng-
lish Channel.
If the two sides in the Brexit debate
were to acknowledge the extent of the
EU’s political problems, how might that
affect the referendum campaign? It
seems much more likely that the image
of an EU in crisis would help the Brexit
camp. A squabbling, paralysed EU is a
much tougher sell than a smoothly
revolution and globalisation. Flying
blind, companies seem happier to cut
costs and buy back their shares than to
invest purposefully for the future. Take
the European telecommunications sec-
tor. Not long ago most telecoms compa-
nies were national monopolies with lit-
tle, or no, competition. Today, it is hard
to predict where the next threat is going
to erupt.
WhatsApp, the California-based mes-
saging service, was founded in 2009 and
only registered in most companies’ con-
sciousness when it was acquired by
Facebook for more than $19bn in 2014.
Yet in its short life WhatsApp has taken
huge bites out of the lucrative text mes-
saging markets. Today, WhatsApp has
close to 1bn users sending 30bn mes-
sages a day. The global SMS text messag-
ing market is just 20bn a day.
Car manufacturers are rapidly wising
up to the threat posed by new genera-
tion tech firms, such as Tesla, Google
and Uber, all intent on developing “apps
on wheels”. Chinese and Indian compa-
nies, little heard of a few years ago, are
bouncing out of their own markets to
emerge as bold global competitors.
★ FINANCIAL TIMES
Comment
You need only disengage from this
leadership race momentarily to see the
sheer galloping nonsense of it. The race
is for a vacancy that does not exist, may
not exist until 2019 — the prime minis-
ter’s favoured date of departure — and
should not exist even then.
Mr Cameron won a general election
only nine months ago. He is not yet 50.
Next to the prime ministers who were
Tories should remember
they are running a country,
not an internal recruitment
process
physically hollowed out by the stresses
of power, he looks like he has spent the
past five years in a spa. He still often
scores a net-positive approval rating in a
country that has had a decade to tire of
his patter. Were he to renege on his com-
mitment to quit, the only mystery at the
next election would be whether Labour
emerges with enough votes to bother
carrying on as a party.
functioning success story. But, perhaps
paradoxically, the fact Europe is in crisis
actually strengthens my own resolve to
vote for Britain to stay inside the EU.
For all its faults, the EU champions
ideas that are crucial to peace and free-
dom in Europe. These include co-opera-
tion between nations, the rule of law, the
protection of human rights and the pro-
motion of free trade. Nationalist politi-
cal forces that challenge all of these
ideas are growing in strength across
Europe, from France to Poland, and
they are united by their hostility to the
supranational EU.
Outside the EU, a hostile and freshly
aggressive Russia is cheering on the pos-
sible collapse of the European project —
and is probably funding some of its most
ardent internal opponents.
In its own interests,
the UK must
contribute to stability
on the continent
As the driving force of capitalism,
competition gives companies a purpose,
a mission and a sense of direction. But
how can companies compete in such a
shape-shifting environment? There are
perhaps two (partial) answers.
The first is to do everything to under-
stand the technological changes that are
transforming the world, to identify the
threats and opportunities early.
The incentive structures of
many companies are to
minimise risk rather than
maximise opportunity
Gavin Patterson, chief executive of
BT, the British telecoms group, says one
of the functions of corporate leaders is
to scan the horizon as never before. “As
a CEO you have to be on the bridge look-
ing outwards, looking for signs that
something is happening, trying to antic-
ipate it before it becomes a danger.”
To that end, BT has opened innova-
tion “scouting teams” in Silicon Valley
Unless Britons choose to leave the EU,
there is no good reason for him to retire
(the shortlived embarrassment of going
back on his word does not count) and
therefore no good reason for either the
dreary jockeying to replace him or the
minute-by-minute conjecture it has
spawned. He has a lot to answer for.
The race is not even about anything.
Ms May seems a slightly more conven-
tional conservative than Mr Osborne or
Mr Johnson, with their London sensibil-
ities and global interests. Beyond that,
finding substance in their three-way
tussle — if, as everyone assumes, it really
exists — is like trying to pierce vapour
with a spoon. This is politics within poli-
tics and politics for the sake of politics.
It is nice of the Conservatives to pro-
vide their own competition in the
absence of any from Labour, but not if it
runs out of control and trivialises gov-
ernment. Tories should remember they
are running a country, not an internal
recruitment process.
Some sport and gossip might be
excused during a sleepy patch in British
history but the coming years could
include Brexit, an economic downturn
Brexit would deal another blow to the
EU and could even be a major step along
the road to its collapse. Given Europe’s
bloody past and troubled present, help-
ing to destroy the major vehicle for
European co-operation cannot be a
good idea.
It is true that the crisis within the EU
may soon require a fundamental
rethink of the organisation’s aims and
methods, well beyond the minor
changes that Mr Cameron is able to
negotiate.
But when the moment comes for a
fundamental reappraisal of Europe’s
future, it is vital — both for the UK and
the rest of Europe — that Britain is a full
participant in the debate. However, a
UK government that had helped to pre-
cipitate the collapse of the EU is more
likely to be cast in the role of scapegoat
than architect.
Eurosceptic voices in Britain will
argue that all this is far too theoretical. If
the European house is indeed “on fire”,
surely it makes sense for Britain to get
out fast? In particular, they will argue
that free movement of people within the
and Israel, and tech partnerships with
universities in China, the US, Abu
Dhabi, India and the UK.
But even if you foresee the danger, it
does not mean you can deal with it.
After all, Kodak invented the first digital
camera but failed to exploit the technol-
ogy. The incentive structures of many
companies are to minimise risk rather
than maximise opportunity. Innovation
is often a young company’s game.
The second answer is that companies
must look as intensively inwards as they
do outwards. Well-managed companies
enjoy many advantages: strong brands,
masses of consumer data, valuable his-
toric data sets, networks of smart people
and easy access to capital. But what is
often lacking is the ambition that marks
out the new tech companies, their abil-
ity to innovate rapidly and their
extraordinary connection with consum-
ers. In that sense, the main competition
of so many established companies lies
within their own organisations.
Larry Page, co-founder of Google,
constantly urges his employees to keep
being radical. In his Founders’ Letter of
2013, he warned that companies tend to
and further military action abroad. If
politicians and those who chronicle
their doings have an excuse, it is bore-
dom. Between 1997 and Mr Cameron’s
arrival as Tory leader eight years
later, all meaningful politics took place
within Labour because its opponents
were so dire. The intraparty court poli-
tics of the period — the human tendency
to “gather around poles” as Ed Balls,
a Treasury adviser at the time, recently
phrased it — filled the space where
interparty competition should
have been.
Looking back, it was the narcissism of
small differences. It was also a waste of
talent and energy that materially
affected the running of the country. The
Tories are nowhere close to that kind of
fever but they are starting to find the
question of Mr Cameron’s successor
more interesting than is healthy, much
earlier than is necessary. He will not
undo his pledge to leave but he should
instruct his party to focus on what mat-
ters, for there is rather a lot of it. And the
rest of us should follow.
janan.ganesh@ft.com
EU means that Britain is unable to con-
trol its borders, which could be danger-
ous at a time of turmoil in the Middle
East and Europe. The Brexit camp
believes that the Channel can once again
serve as a firebreak, protecting Britain
from what is happening in Europe.
But that view, while superficially
attractive, ignores the patterns of his-
tory. These suggest that if there is politi-
cal turmoil and conflict in Europe, Brit-
ain inevitably gets sucked in, whether it
is the wars of the Spanish succession,
the struggle against Napoleon or the two
world wars of the 20th century.
Britain cannot isolate itself from the
troubles of Europe. In its own interests,
it must contribute to the stability on the
European continent. For the past 50
years, the EU has been crucial to under-
pinning peace, prosperity, diplomatic
dialogue and the rule of law within
Europe. It would be a serious mistake
for the UK to undermine an organisa-
tion that, whether we realise it or not, is
crucial to Britain’s own security.
gideon.rachman@ft.com
grow comfortable doing what they have
always done and only ever make incre-
mental change. “This . . . leads to irrele-
vance over time,” he wrote.
Google operates a 70/20/10 rule
where employees are encouraged to
spend 70 per cent of their time on their
core business, 20 per cent on working
with another team and 10 per cent on
moonshots. How many traditional com-
panies focus so much on radical ven-
tures?
Vishal Sikka, chief executive of the
Indian IT group Infosys, says that inter-
nal constraints can often be far more
damaging than external threats. “The
traditional definition of competition is
irrelevant. We are increasingly compet-
ing against ourselves,” he says.
Quoting Siddhartha by the German
writer Hermann Hesse, Mr Sikka argues
that companies remain the masters of
their own salvation whatever the mar-
ket pressures: “Knowledge can be com-
municated. Wisdom cannot.” He adds:
“Every company has to find its own
unique wisdom.”
john.thornhill@ft.com
9
Zika shows
that fear is more
contagious than
any infection
OPINION
Peter
Sands
T
he rapid spread of the Zika
virus powerfully demon-
strates the threat posed by
infectious disease crises.
The Ebola epidemic, which
began in December 2013, revealed flaws
in almost every aspect of our ability to
respond to such catastrophes. Yet with
Ebola now less visible on the front
pages, the political commitment to
spend the money required has waned
dramatically. Zika shows that we cannot
afford to continue as we are.
The business case for investing in pre-
paredness is compelling. A recent report
by the commission on a Global Health
Risk Framework for the Future esti-
mated that the expected economic cost
of potential pandemics was more than
$60bn a year. It proposed spending
$4.5bn a year to strengthen our
defences.
Globalisation means our economic
vulnerability to infectious disease out-
breaks has increased. In a media-
saturated world, fear is much more con-
tagious than any infection. Fear of infec-
tion drives people to change behaviour,
cancelling holidays and business trips or
avoiding imported products. It is this
behavioural change rather than the dis-
ease itself that determines the scale of
the economic effect.
We see this with Zika. After warnings
to pregnant women against travelling to
infected areas, Caribbean nations whose
economies are dependent on tourism
are seeing cancellations escalate by the
day. The challenges faced by Brazil, the
epicentre of the outbreak, are particu-
A handful of Ebola
cases unleashed a
torrent of rumours
and conflicting advice
larly acute. The Olympic Games in Rio
de Janeiro in August ought to boost the
country’s struggling economy but peo-
ple may simply stay away.
If fear and behavioural change shape
the economic impact of epidemics, then
effective communication of the risks
and potential mitigants should be cen-
tral components of any response.
Yet with Ebola, governments strug-
gled to get their messages across.
In west Africa, for example, efforts to
contain the virus were hindered by local
communities’ distrust of official pro-
nouncements. And in the developed
world, a handful of cases of Ebola
unleashed a torrent of rumours and
conflicting advice.
We are seeing the same happen with
Zika: stories circulate about the poten-
tial for the virus to be transmitted
through sexual contact or the alleged
triggering of the outbreak by genetically
modified mosquitoes. Whether or not
such stories are true, they drive people’s
actions.
The old model, in which people
responded obediently to public health
messages from authoritative sources, no
longer works. Governments now need
sophisticated communication strategies
using all the digital tools at their dis-
posal. They must engage with people
rather than simply tell them what to do.
They need to accept that since there will
be a multitude of voices and data
sources, they will have to earn the right
to be listened to. Too often, instructions
are handed down from on high.
Governments also need to work
together through the World Health
Organisation. A co-ordinated approach
to travel advice will be far more effective
and less economically damaging than
the blizzard of restrictions we saw with
Ebola. However, this requires a degree
of real-time co-ordination that neither
the WHO nor most national public
health agencies are set up to deliver.
While containing the spread of Zika is
the immediate priority, we also need to
break the pattern of responding to each
pandemic as it occurs.
A more robust framework for protect-
ing humanity from such threats is
required. That will involve strengthen-
ing public health systems at the national
level and more effective global
responses led by the WHO. Without
them, the cost in human lives and liveli-
hoods will be immense.
The writer is senior fellow at the Harvard
Kennedy School and chairman of the com-
mission on a Global Health Risk Frame-
work For the Future
10 ★ FINANCIAL TIMES Tuesday 2 February 2016

BUSINESS LIFE

Lasting lessons
“I will support you when I believe you
are right . . . I will tell you candidly
for smug CEOs when I think you are wrong . . . If you
continue your present autocratic style,
I will be your adversary on critical
and somnolent issues.” (Ross Perot, writing to Roger
Smith of General Motors, 1985)
shareholders The open letter to the board is a
well-known weapon in the armoury
‘
The trigger for Mr Perot’s After studying GM in the 1940s,
intervention was GM’s 1985 agreement management thinker Peter Drucker Art of persuasion
to buy Hughes Aircraft. Smith was
convinced advanced technology was
the solution to the carmaker’s serious
hinted at the danger of relying on the
management style of its legendary
leader Alfred Sloan to sustain its Google, taxes and the trouble
problems with production quality and
labour relations. Lesson one for today’s
success. The third lesson of the Perot-
Smith set-to is that directors and
with millions and billions
tech-obsessed managers: it is not.
Mr Perot, who had become a GM
Directors
must call
owners must call out poor managers
before they destroy the companies they
SAM LEITH

of activist shareholders. Carl Icahn has
been firing missives at AIG’s board
recently, urging it to break up the
insurer and become a “smaller, simpler
company”. Artisan Partners last week
lambasted Johnson & Johnson for
“value destruction, litigation charges,
chronic restructuring and longstanding
underperformance”.
director and its largest shareholder
following its 1984 purchase of his
company Electronic Data Systems,
wrote: “I do not believe that GM can
become world class and cost
competitive by throwing technology
and money at its problems.” The
Japanese, he went on, “use old
equipment, and build better, less
run. Mr Perot warned Smith “your
out poor style intimidates people . . . Losing
managers your temper hurts GM . . . Your
tendency to try to run over anyone
before they who disagrees with you hurts your
destroy the effectiveness . . . GM’ers at all levels
use terms like ruthless and bully in
companies describing you”.
they run Closer shareholder engagement has

These letters, however, do not match
the power of the one that Mr Perot sent
to Smith, then chairman and chief
executive of the US carmaker, in
October 1985. It marked a turning
point in American corporate
governance and shareholder activism
— and, as the extract above suggests —
it still holds valuable lessons for
directors, investors and managers.
Mr Perot’s missive is published for
the first time in Dear Chairman, a new
book by hedge fund manager Jeff
Andrew Hill Gramm. He uses shareholders’ letters
to trace a century of US activism. For
Onmanagement those who think governance and
investor rights are a dull, grey sludge,
in which do-gooders, carpetbaggers
and pettifoggers submerge the animal
spirits of entrepreneurial executives,
the book is a revelation: a lively
account of a long war against corporate
and investor smugness, in which Mr
Perot’s battle with Smith stands out.
’
expensive cars by better management”. made managers more responsive over
A second lesson is the value of true the past 30 years but they will always Cole Burston/Bloomberg
director independence. Plenty of be a mixed bunch. “You do have some
boards, from Enron to pre-crisis Royal exceptional [CEOs], but the vast Does £130m sound like a lot when you consider that your
Bank of Scotland, looked well-balanced majority aren’t,” Mr Gramm told me. of money to you? It does to absolute risk of colorectal
on paper, only to fail in practice. As Mr Dear Chairman is not a paean to me. Or at least it did until cancer is scarcely more than
Gramm says of a different boardroom activists, however. Their tactics are I read that Google’s UK half of one-tenth of one per
fight, where the leading dissident was hard to categorise and sometimes hard back-tax bill represents a cent each year: 18 per cent
the chief executive’s wife, “incentives to condone. Sound corporate oversight, tax rate of about 3 per cent. of not very much is still not
and conflicts matter, but true Mr Gramm writes, needs “a team effort If my experience resembles very much.
independence is also a state of mind”. from able managers, demanding that of most people, this A good, head-bending
When Mr Perot failed to dissuade directors, and engaged shareholders”. might be where Google lost example of how percentages
Smith from buying Hughes, he voted When they work towards the same the argument in the court can mislead is offered by
against the deal (the only director to do goal, they can achieve real progress. Mr of public opinion. Peter Frederick in his book
so) and then went public with his wider Perot’s letter shows that he was With exceptions, human Persuasive Writing: How To
criticisms, as he had threatened in his
letter. GM, eager to rid itself of this
determined, difficult, sometimes
angry, but he never lost sight of that
beings are notoriously bad
at making sense of big
Harness the Power of
Words. What if you had
noisy nuisance, agreed to buy out his goal — a final lesson for venal directors, numbers. Many of us will software, he asks, that
stake at an inflated price, at which lazy investors and hubristic executives. have no instinctive purchase detects credit card fraud 90
point he issued a press release exposing “My agenda has one item on it,” he on the difference between, per cent of the time but calls
the extravagant pay-off. The publicity wrote. “To see GM succeed.” say, 250m, 2.5bn and 25tn. a good transaction a fraud
jolted institutional investors out of We will read a headline 0.1 per cent of the time?
somnolent complacency about the andrew.hill@ft.com statistic and — particularly if Sounds good. At least, until
companies they owned. Twitter: @andrewtghill the unit of measurement you take into account the
changes in the course of a actual base rate of fraud: if
direct or implied comparison there is one fraud every
— our brains cloud over and 10,000 transactions, then for
we become honorary every nine frauds spotted

Make or break for medical marijuana

to follow. Cellectis of France, Galápagos
Trial results will set the of Belgium and Adaptimmune of the UK
course for the first UK are among more than 20 European bio-
tech companies to have listed on Nasdaq
company testing the in the past two years. Mr Gover warns
market for cannabinoid against taking American money for
granted. “You can’t just turn up over-
drugs, says Andrew Ward night and expect funding. US investors
members of the aboriginal
tribes that are said to have
only three number words:
“one”, “two” and “many”.
All of this, perhaps
unfortunately, can be useful
to those involved in the
persuasive arts. When you
have facts and figures to
play with, you can take
advantage of different
cognitive biases.
First, there is the
“anchoring effect”: you hear
you will have 100 false
positives.
Then, of course, there is
asymmetry: “90 per cent fat
free” sounds attractive; “10
per cent fat” a deal less so,
unless you’re an enthusiast
for French charcuterie.
So what went wrong with
Google? In part, I suspect it
is a version of the anchoring
effect. When people think of
Google they think in units of
“billions”; if the number

F
one number, and it provides under consideration is firmly
are demanding of time and information a mental baseline. In the in the “millions” it
or Justin Gover, the next few and it takes a serious commitment.” crudest terms, that is what automatically feels meagre,
weeks could be the most GW’s pitch was focused on the poten- you are seeing when a whatever the figure may in
important of his career. Since tial of Epidiolex to treat severe forms of supermarket advertises a fact be. Then there is the
1999, the chief executive of paediatric epilepsy that are resistant to price reduction with the new percentage — which, fairly
GW Pharmaceuticals has led existing drugs: a category numbering price alongside the original; represented or not, is a
an audacious push to make medicines more than 93,000 children in the US or in pricing an item at £9.99, single digit. And then, I’m
from marijuana. Imminent results from alone. which “feels” more than just tempted to add, there is no
trials of Epidiolex, an experimental Unlike Sativex, which was licensed to a penny cheaper than a getting round that, as UK
drug for childhood epilepsy, will go a big pharma partners to sell and is not tenner. More subtly, simply business minister Anna
long way to determining the UK com- approved in the US, GW has kept full prefacing or associating a Soubry put it, £130m in this
pany’s chance of success. control of Epidiolex and tailored its small number with a parade case isn’t “an awful lot of
Positive data would support analysts’ development to the requirements of US of larger ones, or vice versa, money”, whichever gloss you
forecasts for blockbuster sales of more regulators. This makes its commercial “primes” our perception. put on it.
than $1bn a year and strengthen GW’s potential much greater but also in- Then there is the sleight So learn Google’s lesson
position at the forefront of a new cate- creases the pressure on Mr Gover as he of hand of absolute versus and remember, folks:
gory of “cannabinoid” therapies that Mr shepherds the company’s first wholly proportional presentation. reading this column
Gover believes could eventually treat owned product towards market. So, to take a recent example, increases your likelihood of
conditions as diverse as schizophrenia a considerable media panic winning every argument by
and diabetes. “This is what we’ve been ‘The scale of ambition attended findings by the several million per cent.
working towards for 16 years,” he says. World Health Organisation
“I’m excited but I wouldn’t be human if I and the drive for success that every 50g of processed artofpersuasion@ft.com
didn’t have some nerves.”
Mr Gover’s story is not just about his
are the most striking meat you eat a day raises
your risk of colorectal cancer The writer is the author of
efforts to bring credibility to the hazy things about working by 18 per cent. Terrifying, ‘You Talkin’ to Me?’ Rhetoric
world of medical marijuana. It is also a
case study in divergent attitudes to risk in California’ right? It’s less scary, though, from Aristotle to Obama

between investors in the US and Europe.

GW was starved of cash and unloved His decision last year to move with his Great place to meet
by the stock market for most of its first family from London to California
decade as a quoted company in London, reflected the critical work ahead. “I
but since adopting a dual listing on Nas- wanted to be on the ground as we build Alt Coffee, Shanghai
daq in 2013 it has raised $450m. “Epidi- our commercial infrastructure, rather
olex would not exist today without US than every decision having to go back to
investors because we simply could not HQ in the UK.”
have raised the cash,” says Mr Gover. Based in Carlsbad, near San Diego, he
GW was founded in 1998 by a British marvels at the vim and vigour of Califor-
medic-turned-entrepreneur named nian business life. “The scale of ambi-
Geoffrey Guy. He had noticed the rising tion and the drive for success are the
use of cannabis as an illicit remedy for most striking things.” However, he
the symptoms of multiple sclerosis. Was insists that GW remains rooted in the
there a way, he wondered, to capture the UK, where it has 350 employees, and
apparent medical benefits of marijuana will continue to do its R&D and manu-
while avoiding the plant’s psychoactive facturing there. “We want to build a Jackie Cai

effects and legal risks?
Dr Guy hired Mr Gover, newly gradu-
ated with an MBA from Insead in
France, to help build the company and
soon made him chief executive. One of
their first achievements was to per-
suade an initially sceptical UK govern-
ment to grant a licence to grow canna-
bis. An industrial greenhouse was built
somewhere in southern England — the
location remains secret — with 24-hour
security and vetted staff.
In 2001 came a flotation on London’s
junior Aim market but investor enthusi-
asm faded as the biotech sector — noto-
rious for long development cycles and
high failure rates — fell out of favour.
“We had some very difficult ups and
downs,” recalls Mr Gover.
In truth, there were not many ups.
The company did not help its case with
repeated R&D delays. By the end of the
decade, however, Mr Gover felt the mar-
ket was failing to recognise progress.
GW had finally secured backing from
more than 20 regulators around the
world for a multiple sclerosis treatment
called Sativex — the first legally
approved cannabis-based medicine. Yet
the stock remained stuck at half its
initial offer price with little prospect of
additional finance to develop the next
product: Epidiolex.
Mr Gover then began looking to the
Justin Gover: US in search of a more receptive audi-
backing from US ence. Few industries demonstrate the
investors was transatlantic divide in risk appetite bet-
crucial because ter than biotechnology. Since the 1980s,
their British US investors have built a new genera-
counterparts tion of drug companies working at the
were more cutting edge of medical science. The
averse to risk most successful of these, such as Gilead
Anna Gordon
and Amgen, are today worth more than
traditional pharma groups such as
GW Pharma’s drugs are made from
Pain relief compounds known as cannabinoids
found within the marijuana plant and
credited with therapeutic benefits from
pain relief to anti-inflammation.
Relaxed law Interest in the commercial potential of
may ease cannabis has increased since four US
states — Alaska, Colorado, Oregon and
regulation Washington — decriminalised the drug
and 19 others legalised its use for
medicinal purposes.
While this liberalisation could ease
some of the extra regulatory hurdles that
GW has faced in working with a
controlled substance, it might also create
competitive pressures. If people can
legally consume marijuana, why would
they need an expensive prescription
drug to get its benefits?
GlaxoSmithKline and Eli Lilly. Europe
has produced no biotech companies of
this scale. Mr Gover blames a lack of risk
capital for the discrepancy. “The pool is
so much wider and deeper in the US.”
While in London GW faced increasing
scepticism, in New York, Boston and
San Francisco, Mr Gover found inves-
tors eager to listen. GW’s success raising
funds in the US has encouraged others
Justin Gover, GW chief executive, says
the company’s products come with
guaranteed quality and clinically proven
concentrations of cannabinoids that
cannot be substituted with the raw
material. Moreover, they do not produce
the “high” associated with recreational
marijuana use or the negative health
effects of smoking pot.
More than 85 cannabinoids have been
identified but only two — known as
THC and CBD — are well understood.
GW is researching others by breeding
plants with different concentrations of
its various compounds.
“We’ve gone from an interesting idea
to scientific respectability to regulatory
approval,” says Mr Gover. “And we’re still
just at the beginning.”
world-class UK biotech company.”
The chances of achieving that goal
will be much clearer once results arrive
from four separate phase-three clinical
trials — the make or break stage before
seeking regulatory approval — due to
report this year, the first within weeks.
Hopes of success are high after posi-
tive data from “compassionate access”
programmes involving hundreds of US
children. A paper in the Lancet medical
journal in December reported a median
reduction in monthly seizures of 36.5
per cent after treatment with Epidiolex.
However, there is no guarantee these
results will be replicated in placebo-
controlled trials. GW has already suf-
fered one setback in the past year when
a trial of Sativex for pain in cancer
patients failed to show any benefit.
GW’s share price has more than
halved in the past six months as the bio-
tech bull-run that drove the company’s
market capitalisation close to $3bn has
given way to more sober judgments.
Analysts say the stock could rise or fall
by 50 per cent depending on the trial
results; just the kind of binary risk Euro-
pean investors find hard to stomach.
“If it works, the whole field of cannab-
inoids will gain credibility,” says Mr
Gover. “That’s the joy of double-blinded
trials: you have no way of knowing until
the results come in.”
Where 30 Wusong Road, Hongkou district
Plug sockets Yes
Open: 10am-6pm; closed Mon
Shanghai used to be called
the Paris of the Orient and
Alt Coffee captures that Left
Bank feel — but with a
touch of the futuristic. This
15-seat café is only steps
from the city’s best view:
across the Huangpu River to
the trio of neon-lit
skyscrapers and giant space
needle that give Shanghai
its distinctive branded
skyline.
The shopfront café sports
no name plate. Those who
love the place — a
neighbourhood fixture for
more than a decade, in a city
where eateries open and
close with alarming speed —
already know it is there. And
for the rest of us, there is a
sandwich board on the
pavement. In a city so
glutted with Starbucks that
there are sometimes more
than one at an intersection,
WiFi Yes
Coffee Rmb40 ($6)
Privacy ★☆☆☆☆
this is a place for the true
coffee cognoscenti — with
Chinese characteristics.
Do not take a contact
there and expect to do lunch
or cake though: Alt is all
coffee, and the odour is its
best advertisement. Most
patrons sit at the communal
table in the main room, next
to shop assistants packing
up house-roasted beans for
shipment all over China.
Alt’s owner is Japanese
and its signature coffees are
made by the Matsuya drip
method. Staff adjust each
cup to the customer. But
each one takes 10 minutes,
so feel free to step outside
and admire a skyscraper
while you wait — in this, the
most Parisian city in Asia.
Patti Waldmeir
Additional reporting by
Jackie Cai
Tuesday 2 February 2016 ★ FINANCIAL TIMES 11

ARTS

Window on the world of two artistic idealists T H E AT R E

Iphigenia in Splott
National Theatre (Temporary), London
aaaae
The restored studios of G.F. Watts and Ian Shuttleworth
his wife Mary reveal much about their
work and lives, writes Richard Cork Not for the first time lately I have found
myself relishing the sensation of being

T
heWattsGalleryandMortu-
aryChapelinCompton,Sur-
rey, have long been places of
pilgrimage for anyone fasci-
nated by Victorian art and
architecture. But now, with the aid of a
£2.4m grant from the Heritage Lottery
Fund, the studios where George Frederic
Watts and his wife Mary worked have
also been restored and opened to the
public by the Watts Gallery Trust under
its director,PerditaHunt.
Watts, popular, prolific and unabash-
edly high-minded, was active through-
out Queen Victoria’s long reign. Though
a Londoner from birth, as he neared old
age, he found the capital’s pollution
increasingly trying; after his marriage to
the artist and designer Mary Seton
Fraser-Tytler in 1886, he leased the
Compton land — a hilltop site with pano-
ramic views of the surrounding wood-
land — and commissioned the Arts
and Crafts architect Ernest George to
design the capacious house he called
“Limnerslease”. The couple moved in on
July 18 1891.
As you walk into Watts’s lofty studio,
it is the enormous south-facing window
that is most striking. Watts loved to rise
long before dawn and to see how the
advent of daylight transformed his
paintings. He also relished the challenge
of monumental compositions, and one
of his biggest paintings has returned
here, on extended loan from Tate.
Called “The Court of Death”, it drama-
tises Watts’s obsession with mortality.
This overwhelming canvas, which he
worked on for more than three decades
(1870-1902), has been placed on a
reconstruction of the pulley system
devised by Watts for moving paintings
up and down while he worked on them.
Wandering round the studio, one
gets a strong sense of this tireless
artist’s preoccupations. His palette and
brushes rest on a table, and nearby an
image from the Sistine Chapel ceiling
testifies to his love of Michelangelo (he
was dubbed “England’s Michelangelo”).
A Van Dyck reproduction can be found
on another table, and throughout
the studio are fragments of classical
sculpture, notably a reproduction of a
figure from the Elgin Marbles in the
British Museum.
Although Watts was esteemed as a
portraitist, he never wanted to devote
all his energies to painting eminent Vic-
torian sitters — although radical women
fascinated him, and one vigorously han-
dled canvas in the studio turns out to be
an unfinished portrait of Florence
Nightingale. Haunted by the transience
of life, he kept a skeleton in his studio
cupboard and constantly laboured over
such elaborate allegories as the
immense “Love Steering The Boat of
Humanity” (c.1900).
Living in the Surrey Hills also made
him determined to tackle landscape
painting. One of the resulting works,
dominated by freely brushed images of
trees, is displayed on an easel in his stu-
dio. A photograph survives of Watts
painting avidly outdoors, as close as pos-
sible to the natural world he cherished.
Mary, 32 years his junior, was an
extraordinary force, and her newly
restored studio is alive with evidence of
an irrepressible dynamism. No less ide-
alistic than her husband, she dedicated
herself to social enterprises. Her studio
doubled as a teaching room for villagers
who wanted to help create terracotta
tiles and panels for her Mortuary Chapel
in Compton’s cemetery nearby. The
chapel became an Arts and Crafts show-
piece, and a new model of the chapel, by
Henry Milner, is on display in Mary’s
studio. So is a series of decorative
friezes, in gesso and wood, which she
made for the Cambridge Military Hospi-
tal Chapel in Aldershot — long-
neglected religious works that have now
been fully conserved.
Fascinating examples of pottery can
also be seen in Mary’s studio, testifying
to her success in establishing the Comp-
ton Potters’ Arts Guild co-operative with
local villagers. It won contracts with Lib-
erty & Co as well as commissions from
architects including Edwin Lutyens.
For several years before her husband’s
death in 1904, Mary devoted a great deal
of time to helping the octogenarian
Watts carry on working. The depth of
her feelings is poignantly revealed in her
watercolour of him lying in bed, ill and
fragile. She eventually died in 1938, and
now the full extent of her commitment
to a wide range of projects — she also ran
the local branch of the Women’s Suf-
frage Society — is celebrated in the
newly opened studio.
The rescue of this important artists’
house reveals its significance as a power-
hub for the work created by both
husband and wife.
wattsgallery.org.uk
Power-hub: clockwise,
from main picture, Mary
Seton Watts’s restored
studio; G.F. Watts in his
studio, 1900-04; portrait
of Mary by G.F. Watts
(1887); G.F. Watts’s studio.
Below: Sophie Melville in
‘Iphigenia in Splott’
David Grandorge; Watts Gallery; Mark Douet
caught by a dramatic sucker punch. A
piece of work seems, predictably and
uninterestingly, to be heading in one
direction but then swerves into alto-
gether more fascinating territory. This
time the play in question is Gary Owen’s
latest, which visits the National Theatre
in a production that premiered last
spring at Sherman Cymru in Cardiff.
Sophie Melville’s unsettlingly upfront
Effie begins by challenging the audience
in what she claims (probably rightly)
are our middle-class assumptions about
her. Clad in hoodie and leopard-print
leggings, Effie prowls the stage recount-
ing her lairy, drink- and drug-fuelled
exploits in the less salubrious inner-city
areas of Cardiff (of which Splott is one).
Those of us who recognise the classi-
cal allusion in the title begin to wonder
where the analogy is with the daughter
whom Agamemnon sacrificed in order
to give the Greek army fair winds as they
sailed off to besiege Troy. Eventually
matters swim into focus: Effie, having
refrained from accusing the married ex-
soldier who knocked her up on a one-
night stand, loses boyfriend, home and
prospects. So far, so sharply written,
keenly performed and (by Rachel
O’Riordan) astutely directed, but still
just another gritty urban monologue.
This is where Owen slews his vehicle
into the oncoming traffic. As Effie’s
unborn baby begins to act up in its sec-
ond trimester, the piece becomes an
account of her sufferings due to health
service funding cuts. The greater her
physical and emotional agony, the more
incandescent the political indictment.
Suddenly the play reveals its purpose:
to testify how countless ordinary folk
are being sacrificed to grant fair eco-
nomic winds to a dubious ideological
enterprise. When the initial chal-
lenge to us is reprised, it serves to
clarify that Effie’s own restraint (by
not pressing for compensation) has
saved at least some resources for us,
and to ask: what will happen when all
such patience is exhausted?
To February 20, nationaltheatre.org.uk

Soirée chez Simon and Magdalena

CLAS SICAL MUSIC
Magdalena Kožená
Wigmore Hall, London
aaaae
Richard Fairman
As soon as this recital was announced, it
became the hot ticket in Wigmore Hall’s
song recital series — and not just because
of the singer. Better known for his day
job as conductor of the world’s most
prestigious orchestra, Simon Rattle was
making his debut at Wigmore Hall and a
rare appearance in London as a pianist.
Would he shine? Could he do it at all?
Nor was that the only attraction.
There is an unquantifiable extra appeal
in seeing a singer accompanied by her
husband. Magdalena Kožená and Rattle
are not the first married couple to take
up song recitals: Russian soprano Galina
Vishnevskaya was often accompanied
by her cellist husband Mstislav Rostrop-
ovich, and for sheer, hair-raising
charisma they were hard to beat.
This was a more relaxed affair. Rattle
had invited along six solo instrumental-
ists, colleagues from Berlin and London,
and their presence had two conse-
quences. First, Rattle’s duties at the
piano were much reduced in scope; and,
second, the programme could contain
some of the wonderful and little-
Relaxed:
Simon
Rattle and
Magdalena
Kožená at
Wigmore
Hall
Simon Jay Price
performed works composed for voice
and instrumental ensemble.
In a nod to the 400th anniversary of
Shakespeare’s death, Kožená can claim
to have unearthed a few rarities.
Stravinsky’s Three Songs from William
Shakespeare are typically economical
vignettes for mezzo-soprano, flute, clar-
inet and viola. Brahms’s Ophelia-Lieder
are like simple folk songs, whereas
Strauss’s better-known Drei Lieder der
Ophelia inhabit a subtly crazed world,
which elicited a compelling perform-
ance from Kožená. As the Strauss songs
have a piano-only accompaniment, they
were Rattle’s primary challenge of the
evening and he sailed through.
Kožená sang in four languages, none
of them very clear, except her native
Czech. In French music, though, her
lambent mezzo, lit with radiance from
within, sounds especially well suited,
making Chausson’s Chanson perpétuelle
and Ravel’s coruscating Chansons madé-
casses among the recital’s highlights.
To end, the contrasting Czech styles
of Janáček’s pithy Ríkadla (“Nursery
Rhymes”) and a selection of Dvořák’s
romantic songs, arranged by Duncan
Ward for the full ensemble, offered
first wit and then middle-European
sentimentality.
It was a delightful evening. If this is
what a musical soirée chez the Rattle
family is like, they should sell tickets.

wigmore-hall.org.uk

JAZ Z
Joe Locke
Pizza Express Jazz Club, London
aaaae
Mike Hobart
Joe Locke’s clean lines, crystalline tone
and shimmering vibrato recall the great
US vibraphonists Milt Jackson and
Bobby Hutcherson, but their fellow
American boosts his technically assured
modernism with emotional commit-
ment and compositional flair. At this
spirited end-of-tour gig, each piece
twisted, turned and changed tempo, tex-
ture and groove. Even the opening cover
of the lovelorn ballad “Laura” was given
a high-octane, mood-shifting revamp.
The evening began at a canter. Three
well-struck notes called order, vibes and
piano briefly echoed the rondos and
fugues of the 1950s combo Modern Jazz
Quartet, then the pulse darkened to a
deep Latin funk. Locke, intense and
mesmerising from the off, delivered
intricate lines at full volume with a blur
of mallets. When he struck a particularly
resonant note, he bounced back, as
though recoiling from the effort. The
piece finally revealed its songbook ori-
gins with a few solemn notes from
bowed double bass.
The set continued with a reference to
Intense: Joe Locke with bassist Ricky
Rodriguez at Pizza Express Jazz Club
Art Blakey’s Jazz Messengers, Locke tak-
ing the central motif of “Along Came
Betty” and transforming it into a tempo-
shifting original, “Betty One Note”.
The focus of the gig, though, was
Locke’s recent album, Love Is a Pendu-
lum, a five-movement suite based on a
Barbara Sfraga poem. Here he presented
three pieces: the title track, “Love Is the
Tide” and “Love Is Perpetual Motion”.
The complex, multi-layered album
captures the poem’s emotional riches
with horns, steel pans and more besides.
But here Locke was on the rampage with
the fiery young rhythm section. Pianist
Robert Rodriguez matched the leader’s
intensity while Terreon Gully’s light
cymbals and dramatic backbeats locked
into Ricky Rodriguez’s dead-centred
doublebassandbassguitar.Lockeletthe
band stretch out, cueing the complexi-
ties with grimaces and bodyswerves that
added to the music’s vibrant immediacy.
It was an uplifting gig that deserved its
broodingballadencore.
joelocke.com
12 ★ FINANCIAL TIMES Tuesday 2 February 2016

Full tilt
Turbine manufacturers Vestas and Gamesa have recovered strongly since 2012, bringing costs under
control and restoring their margins. Gamesa’s current share of the global wind turbine market is
4.5 per cent, which if combined with Siemens’ 9.5 per cent would leapfrog Vestas into first place

Twitter: @FTLex Email: lex@ft.com Gross Margin (%) Net income Margin (%) Wind turbine manufacturers
Gamesa Gamesa Market shares (%)
Vestas Vestas
40 0 10 20 30
Ryanair: paying a special dividend, as it did after SFX Entertainment:
selling its Aer Lingus stake. That may 30 Siemens + Gamesa
share fly backs have tax implications for investors but
Vestas
facing the music
it does afford those who are less 20
Dividends do not mix very well with ebullient about industry prospects a Goldwind A unicorn in a hypnotic trance is more
airlines’ business models. Of the large choice in how the cash is deployed. 10 dangerous than you might think.
listed European airline groups, only GE Energy Yesterday, SFX Entertainment, the
easyJet has paid a regular and 0
Enercon electronic dance music festival
progressive dividend over the past few Japan: company whose events drew hundreds
years. It is not hard to see why. -10 Suzlon of thousands to parks and stadiums,
Aviation is a capital-intensive industry, bowing to yield filed for bankruptcy. The company, put
reliant on substantial debt financing of -20 United Power together by entertainment veteran
aircraft purchases. It is also cyclical and In Japan, cash no longer rules; it does Mingyang Robert Sillerman, went public less than
prone to external shocks from terrorist not even get to live in the palace. Since -30 three years ago. In the days after the
attacks, volcanic eruptions and oil last week, Japan’s banks must pay Envision float, its share price jumped and its
price volatility. 0.1 per cent to park excess reserves 2010 11 12 13 14 15* valuation pushed through $1bn —
There is a way around these with the central bank. Cash-rich Others “unicorn” territory, in start-up jargon.
FT graphic Sources: Statista; S&P capital * 12-months to Sept
uncomfortable realities. Ryanair has companies are even more incentivised But despite issuing debt and buying up
never paid a regular dividend. Since to distribute their surplus funds. smaller competitors, profit growth
2008 it has returned a total of €2.9bn Ever looser money has helped the It is not just bad luck that comes in about 30 per cent, whereas the cost of (after news of the talks broke) never materialised.
to investors via a combination of benchmark Topix index rally 5 per cent threes. European wind power goods have risen 18 per cent and Gamesa would cost 30 times trailing SFX was initially able to exploit the
special dividends and share buybacks since the announcement. The companies — turbine makers, not the operating expenses are down. Vestas’s earnings. Justifying that premium hype surrounding “millennial”
that fit around its capital allocation conditions are ripe for further gains. wind harvesters — had a fine 2015, in margins have improved similarly. will require growth and execution. businesses to attract investment. Its
priorities. It said yesterday that it Negative returns on yen cash make part due to events outside their Gamesa on Friday confirmed Yet conditions in target markets, reckoning, coming as capital has
would kick off another €800m yielding assets ever more appealing; control. Thank-you letters are owed another slice of luck, a potential such as Brazil, are tricky, and 2015’s become more discerning, is a warning
programme of share repurchases; the Japanese stocks yield shy of 2 per cent. to the European Central Bank, for combination with Siemens. Whatever exchange rate advantage is eroding. to other youth-oriented enterprises.
shares rose 5 per cent even though And dividends could rise: the Topix’s weakening the euro; President the outcome of their talks (currently Two, should Siemens combine Giving Mr Sillerman money three
Ryanair missed analysts’ forecasts for aggregate payout ratio is just 30 per Barack Obama, for renewing wind unclear) there is logic to a deal. A Gamesa’s €3.5bn in sales with its own years ago was not an absurd idea. In
net income. cent, below the 50 per cent of the S&P energy tax credits; and to the bigwigs Siemens-Gamesa combo would be the €5.5bn, 12 per cent of revenues would the 1990s he had built a concert
A blueprint for other cyclical, 500 in the US. who agreed an ambitious climate world’s largest turbine manufacturer. come from wind power. Chinese promotion business into Live Nation,
capital-intensive industries? Up to a Earnings, too, are growing. On Friday change deal in Paris, underpinning Siemens is dominant in the smaller competition will keep pressure on which he then sold for over $4bn. The
point. One criticism of share buybacks heavyweight NTT DoCoMo was among the case for renewable energy. offshore business, concentrated in margins. Falling prices for solar and EDM industry was fragmented and ripe
— that they leave investors with a a batch of companies beating analysts’ Luck is not the whole story. Vestas developed economies. Gamesa’s gas weaken the case for wind. for a well-funded operator to roll it up.
bigger slice of a smaller pie — is forecasts for third-quarter earnings — and Gamesa began to rally in mid- business is onshore and it is taking aim Renewables suffer from political risk SFX raised $220m of high yield debt in
blunted by Ryanair’s rapid growth. Its by about one-fifth. NTT said it would 2012, when Europe’s two leading pure at markets such as Latin America, and governments under fiscal early 2014 and has, in total, nearly
share count has fallen 8 per cent since buy back more than $4bn of its stock to play turbine makers began to where installed wind capacity lags pressure have shown no scruples $400m of debt and preferred stock.
2008 as equity has risen 62 per cent. lift shareholder returns. Yesterday, its restructure in response to losses behind Europe and North America. about switching course. US politics is But failure to increase revenue or
The relatively smooth ascent of its shares rose 15 per cent to decade highs. wrought by weak margins. It worked. Siemens’ shareholders should have going through a somewhat febrile control costs from the acquisition spree
share price has meant it rarely suffered Those in Sony, which also beat Since 2012, Gamesa’s sales are up two worries. One is price: at €17 a share patch. Luck can change. — it bought both festivals and digital
the indignity of buying back shares forecasts, did likewise. media businesses — have kept the
only to see the stock fall back. What might go wrong? If companies company from meeting its obligations.
Ryanair thinks it will keep growing; dole out too much cash, capital The dance music business is not
full-year profit will be at the top of its spending plans could suffer. There as the cost of holding it has only risen. Another year has passed and another the shares last year. By late summer intrinsically bad. SFX had 2015
forecast range and it plans to carry seems little immediate danger of this, Expect more cash to flow to investors chief executive has gone. The company Luxottica traded at its highest revenues of roughly $400m and held
80 per cent more passengers by 2024. though. Japanese companies have in the future. announced the exit of co-CEO Adil valuation ever: a ratio of enterprise 106 festivals. But the ambition it sold to
The shares do not look particularly record aggregate cash balances just shy Mehboob-Kahn late last week. That value to earnings before interest, tax, investors was not matched by its ability
overvalued (though they do trade at a of $1tn, suggesting that investment leaves his erstwhile partner, the depreciation and amortisation of more to execute.
higher multiple of profits than activity would not be constrained by a Luxottica: (relative) Luxottica veteran Massimo than 16. Even though that multiple A restructuring plan contemplates
easyJet’s). Yet much of the benefit of lack of resources. As increased payouts Vian, in charge. The shares fell 5 per has fallen in the past month or so, it wiping off more than $300m of debt.
expected lower fuel prices will be boost overall returns, investors may visionary cent. Perhaps the market’s patience with remains well above most listed Shareholders will be wiped out, which
passed through to customers in the become less concerned about the the game of musical chairs at the top of fashion companies and its own long- is bad news for Mr Sillerman who owns
form of lower fares, just when the outlook for growth. Fashion is not an industry in which age Luxottica is wearing thin. Mr Vian has a term average. more than 40 per cent of the common
industry is embarking on a period of China’s slowdown, too, is a possible comes before beauty. At Italy’s strong reputation as an operations man. The valuation does not price in any equity. He will also cede the CEO slot.
above-average capacity growth. worry. Yet CLSA points out that even as Luxottica, an exception has been made. The head visionary, Mr del Vecchio, risk on succession for Mr del Vecchio The new company may have a total
European capacity will grow more than earnings for those companies most In September 2014, the eyewear maker becomes executive chairman. (who is a sprightly 80). This is not only value of a few hundred million dollars.
7 per cent in 2016, says Citigroup, exposed to Chinese growth — such as and retailer lost its long-time chief Though business is sound, Luxottica pertinent because of the rotating CEOs. The shows will go on — at the much
putting more pressure on ticket prices. machinery makers and commodity executive Andrea Guerra just as has enjoyed a big boost from the strong He also owns most of the shares; his softer volume they should have been
As a low-cost carrier, Ryanair will trading companies — have been founder and chairman Leonardo del dollar recently. More than half of family is not involved in management. set to all along.
weather those conditions better than downgraded, earnings forecasts across Vecchio took a more active role. The revenues come from the US and these The dollar will not rise forever.
most of its rivals. Still, for buybacks to the index continue to rise. Other successor to Mr Guerra lasted 40 days. — unadjusted for currency movement Mr del Vecchio needs to ensure his
carry on working, Ryanair needs a lot markets clearly matter more. The market did not mind much: — jumped nearly a quarter last year, company has a stable executive suite Lex on the web
For notes on today’s breaking
to go right. For future returns, the Japanese companies will feel less Luxottica’s shares soared 35 per cent but only 4 per cent on a constant dollar and a succession plan should he need stories go to www.ft.com/lex
company should instead consider need than ever to hold cash for safety, last year, beating the Italian bourse. basis. Investors priced that benefit into to step away himself.

980 Today’s temperatures

1000 990 LO Abu Dhabi Sun 21 Malta Fair 17
3 Amsterdam Cloudy 10 Manila Fair 32
Ankara Fair 8 Miami Cloudy 27
1010 LOW 4 4 LO Athens Sun 20 Milan Cloudy 11
3 Bahrain Sun 18 Montreal Sun -3
Barcelona Sun 16 Moscow Snow 3
1020 69 Beijing Sun 4 Mumbai Sun 31
7
Belfast Sleet 6 Munich Fair 13
6 Belgrade Fair 16 Naples Fair 16
7 Berlin Rain 11 New York Sun 9
1
30 Brussels Rain 10 Nice Cloudy 15
11 Budapest Cloudy 12 Nicosia Sun 20
9 12 Cairo Fair 19 Oslo Sleet 4
1030 Cardiff Shower 10 Paris Rain 12
12 12 Chicago Rain 7 Prague Cloudy 12
11 Cologne Rain 12 Reykjavik Cloudy 1
12
Copenhagen Fair 7 Riga Shower 6
1 17 HIGH Delhi Sun 21 Rio Sun 34
16 8 Dubai Sun 22 Rome Fair 16
Dublin Shower 6 San Francisco Shower 14
31 16 Edinburgh Shower 7 Singapore Fair 32
16 16 16 Frankfurt Rain 12 Stockholm Rain 5
19 20 Geneva Fair 13 Strasbourg Cloudy 14
20
Hamburg Cloudy 9 Sydney Shower 25
Helsinki Sleet 3 Tokyo Fair 8
23 19 18 18 Hong Kong Cloudy 10 Toronto Cloudy 4
Istanbul Sun 12 Vancouver Cloudy 7
24
Lisbon Sun 16 Vienna Fair 13
Wind speeds in KPH 18
London Fair 11 Warsaw Rain 11
Forecasts by Los Angeles Sun 17 Washington Fair 10
Wind speed Luxembourg Rain 9 Zagreb Fair 16
in KPH Madrid Sun 16 Zurich Cloudy 11

CROSSWORD
No. 15,153 Set by ARMONIE
       ACROSS DOWN
1 Starts to look at tracks 1 Learning about current in the
through the country (6) river (5)
  4 Speaks of panic with son (6) 2 Give hairstyle that’s in
8 Naughty Carol keeps a pub (7) fashion? Certainly! (7)

9 Problem for old Bob the repair 3 Purity Connie falsely showed
  man (7) once appearing topless (9)
11 Purcell has developed 5 Comprehensive kid gets a
melancholy (10) quid (5)
  
12 Old people imprisoned – many 6 A small fastening can alter
lost (4) one’s course (3,4)
13 New information about soldier 7 Worker’s first wife died in
(5) shop (9)
   
14 Weirdo makes illegal drugs (8) 10 First-rate fish served with
16 Teacher having gym with pork (9)
students is badly put down (8) 13 Stable hand crosses stream
   18 Money put into academic for a place to eat (9)
funds (5) 15 Now for a tango show (2,7)
20 Further inside the Royal 17 Drunken legions drink this . . . .
  Society (4) (4,3)
21 Harmony in a musical 19 . . . . nastier sort of wine (7)
instrument (10) 21 Box the revolutionary way (5)
  23 Fielder’s desire to get on (4,3) 22 Impossible idea one’s given up
24 Idea vet developed to change (3,2)
(7)
25 Speechless about batting a
JOTTER PAD short time (6)
26 Dishonour grips royal family
(6)

Solution to Saturday’s prize puzzle on Saturday February 13

Solution to yesterday’s prize puzzle on Monday February 15
Winners’ names will be printed in Weekend FT
Tuesday 2 February 2016 ★ 13

Prudential Aetna Easyjet Brent oil Xetra Dax Shanghai Gold Euro/dollar
Deutsche’s woes Why they Composite
could get even worse 3% 2% 3.4% 5.1% 0.4% 1.8% $10 0.5%
PATRICK JENKINS, PAGE 14
1,326.5p $103.8 1,601p $34.14 9,757.88 2,689.25 $1,127 $1.0887

US big-hitters hold secret summits Short

View
3 Dimon and Buffett lead governance move 3 Aim to reduce friction with investors
debate about whether public markets headquarters in December, the Finan- As well as being involved in capital
Elaine
STEPHEN FOLEY AND BEN MCLANNAHAN
NEW YORK demand short-term profits at the cial Times has learnt, following a first The asset markets, JPMorgan also has an asset Moore
expense of long-term investment. meeting in August. managers management arm that is one of the US
The world’s largest asset managers have In recent years, some private compa- The group is discussing a statement of equity market’s largest investors, with
held a series of secret summit meetings nies have shunned early public listings, best practice on corporate governance. aim to come $1.7tn in assets. Mr Buffett, a long-time One of the world’s fastest growing markets is in something
to hammer out proposals for govern- and technology bosses such as Michael Discussions have focused on issues such up with a friend of Mr Dimon, has eschewed many that did not exist 18 months ago.
ance of public companies aimed at Dell have argued that equity markets as the role of board directors, executive corporate governance norms at his In mid-2014, there was no such thing as negative yield-
encouraging longer-term investment are so focused on short-term gains that compensation, board tenure and share- list of best company, Berkshire Hathaway. ing bonds: government debt securities that trade at such a
and reducing friction with investors. they prevent long-term investment. holder rights, all of which have been practices Other contributors to the initiative high price that a buyer would make a loss by holding them
Jamie Dimon, chief executive of Some large technology groups have also flashpoints at US annual meetings. are understood to include Mark Wise- to maturity. Now, negative yielders account for one quar-
JPMorgan Chase, and Warren Buffett opted to go public with dual-class share Mr Dimon, in particular, has reason to man of the Canada Pension Plan Invest- ter of the entire government bond universe.
convened the sessions with the bosses of structures that limit shareholder rights hope for a rapprochement between ment Board and Jeff Ubben of ValueAct, Yesterday there were even more of them as markets felt
BlackRock, Fidelity, Vanguard and Cap- to minimise the influence of activist boards and long-term shareholders. He an activist hedge fund manager. the effect of Japan’s surprise easing last week. After years
ital Group to work on a statement of best hedge funds. has faced personal criticism for combin- No participants agreed to be quoted of holding rates close to zero, the Bank of Japan wrong-
practice that would cover the relation- The asset management bosses, ing the role of chairman and chief exec- on the initiative, which is not expected footed investors on Friday by taking the plunge and intro-
ship between US companies and their including Abby Johnson of Fidelity, utive at JPMorgan, and at the company’s to come to fruition for several months. ducing sub zero interest rates. This unexpected move had
shareholders. Larry Fink of BlackRock and Tim last two annual meetings, more than a The asset managers aim to come up with the desired effect of shocking markets into action and
The collaboration comes at a time of Armour of Capital Group, met most third of its shareholders voted that he a list of best practices that they will sup- more than $1tn of government bonds with positive yields
rising shareholder activism and a raging recently at JPMorgan’s New York should split the roles. port at the companies they invest in. dropped into negative territory in the space of a week.
Even the yield on benchmark 10-year Japanese bonds is
now edging towards zero, reaching a record low of 0.03 per
cent yesterday morning.
As these yields fall, JPMorgan expects Japanese investors
to increase their foreign bond purchases. Last year, Japa-
Luxottica spectacle nese investors bought an average of $2bn of overseas
Shares dive on fresh bonds a week. This year, it might be more, given continu-
ing concerns over China’s economy, oil prices, emerging
boardroom upheaval market growth, and the risk of recession in the US. In Janu-
ary, both high yield and emerging market bonds posted
losses for investors, while equity markets on every conti-
Shares in Luxottica fell sharply nent slumped.
yesterday on news that the luxury Will February be different? Possibly not. After a bracing
eyewear group had lost its third chief rise last week, share prices in the US and Europe were
executive in 18 months, writes Mark down on the first day of the month, as were prices for oil —
Vandevelde. albeit above last month’s sub-$30 lows.
After the markets closed on Friday, German government bonds are following in the foot-
Luxottica announced its 80-year-old steps of Japan, with the yield on the five-year Bund hitting
founder Leonardo Del Vecchio would a new record low of minus 0.32 per cent. It seems investors
take over from Adil Mehboob-Khan, cannot help but wonder whether the European Central
who is to leave his co-CEO role at the end Bank might copy the BoJ and pull its own rabbit out of the
of February. Shares in the world’s biggest hat at its next meeting.
eyewear group by sales fell as much as However, bond investors should not forget what hap-
9 per cent in Milan yesterday morning, pened two months ago when markets raised hopes of ECB
before recovering by the close to be action — only to see them dashed. Investors may want to
down 5.7 per cent at €54.25. forget January. But they should still remember December.
Mr Mehboob-Khan’s appointment in
January last year at the maker of Ray-
Ban and Oakley glasses was seen as an Japanese 2-year bond yield
attempt to end the management turmoil Per cent
that began when Mr Del Vecchio -0.01
returned in September 2014. -0.02
Mr Del Vecchio’s decision to appoint -0.03
two co-chief executives prompted the -0.04
departure of Andrea Guerra, who had -0.05 Negative yielding
led Luxottica for a decade. Enrico -0.06 bonds account for
Cavatorta, who was subsequently -0.07 one-quarter of the
brought in to fill one of the top spots, -0.08 entire government
resigned after just 40 days. -0.09 bond universe
Luxottica said the management Jan 2016 Feb
structure would now be simplified. Source: Thomson Reuters Datastream
See Lex
elaine.moore@ft.com
Ann E Parry/Alamy

Wall St the winner as four ‘roll-ups’

spend $1bn on investment bank fees
ARASH MASSOUDI, MILES JOHNSON AND argued they could build companies that one,” Mr Chanos said. “Those roll-ups
DAN MCCRUM
were more efficient than their peers, and are just huge fee payers to Wall Street.”
Four highly acquisitive US and Euro- drew the backing of some of the highest The $1.1bn in fees paid by the four
pean companies have generated more profileUShedgefundmanagers. companies since 2013 is roughly equal
than $1bn in investment banking fees However, since August, shares in each to the amount of fees paid by Swiss cor-
in the past three years, highlighting of the four have fallen more than 50 per porations in 2015 and close to the total
how a few leverage-fuelled groups have cent, as investors have taken fright at fees made from South and Central
Investors put big pharma boosted Wall Street. their heavy debt burdens and ability to America over the same period.
under the microscope grow without further deals. Valeant, Valeant has paid $398m in total
The companies — Valeant Pharmaceuti- Altice, Platform Specialty and Nomad investment banking fees since 2013.
Some of the world’s biggest cals, Altice, Platform Specialty Products have collective debts of $78bn, just as the The largest recipients were Goldman
pharmaceuticals groups are facing and Nomad Foods — have all grown rap- costofcorporatedebthasbeenrising. Sachs and Deutsche Bank, which
calls to break up their diversified idly through big acquisitions facilitated Jim Chanos, a hedge fund manager received $60m and $48.5m respec-
businesses in favour of greater focus, by record-low interest rates. That put who holds short positions in several tively, according to estimates from
as investors reconsider the merits of a them among the leaders in the overall highly acquisitive companies, said the Thomson Reuters and Freeman Con-
business model designed to reduce mergers and acquisitions boom. fees generated by these companies sulting. European telecoms group Altice
volatility and spread risks. Known as “platform companies”, the meant investment banks had reason to spent $484m in fees for acquisitions in
Analysis i PAGE 16 groups grew rapidly by making several promote them to investors. “They’re Portugal, France and the US.
acquisitions. Their executives often investment banking-driven, number Platform party topples See Markets

Companies / Sectors / People

Companies
AIG...................................................................10
AbbVie...........................................................16
Abbott Laboratories.......................16,23
Adaptimmune............................................10
Aetna..............................................................23
Alcatel-Lucent...........................................16
Alcoa...............................................................21
Alere..........................................................16,23
Allianz............................................................24
Allied Minds................................................21
Altice.........................................................13,22
Apple..........................................................4,24
Artisan Partners......................................10
AstraZeneca...............................................16
BHP Billiton.................................................17
BP......................................................................17
Bank of America Merrill Lynch......14
Barclays.........................................................14
Baxalta...........................................................16
Baxter.............................................................16
Bayer...............................................................16
Berkshire Hathaway..............................13
BlackRock.....................................................13
Brevan Howard........................................14
Bristol-Myers Squibb............................16
Canada Pension Plan Inv. Board...13
Capital Group.............................................13
Cellectis.........................................................10
Charles Schwab........................................14
Citigroup......................................................22
Concord Resources................................16
Credit Suisse..............................................14
Danske Bank..............................................14
Deutsche Bank....................................13,14
Dominion Resources.............................23
Elliott Management...............................23
Facebook ......................................................4
Fidelity...........................................................13
GSK..................................................................16
GW Pharmaceuticals.............................10
Galápagos....................................................10
Gamesa..........................................................12
Gazprom........................................................17
General Motors........................................10
Gilead Sciences.........................................16
GlaxoSmithKline.......................................16
Glencore........................................................16
Goldman Sachs...................................13,16
Google..............................................................4
Gunvor...........................................................16
Home Retail Group................................23
Humana........................................................23
J Sainsbury.................................................23
JPMorgan Chase..................................4,13
Johnson & Johnson.........................10,16
Julius Baer...................................................14
Just Eat.........................................................23
Lufthansa.....................................................15
Luxottica.................................................12,13
Merck..............................................................16
Microsoft........................................................4
Morgan Stanley..................................14,22
NTT DoCoMo.............................................12
Nippon Steel & Sumitomo Metal...17
Noble Group...............................................16
Nokia...............................................................16
Nomad Foods......................................13,22
Novartis.........................................................16
Opec...............................................................20
Pershing Square...............................22,24
Pfizer...............................................................16
Platform Specialty Products......13,22
Queensland Nickel..................................17
Questar..........................................................23
Rolls-Royce.................................................23
Rosneft...........................................................17
Royal Bank of Scotland......................10
Ryanair.....................................................12,15
SFX Entertainment.................................12
Sage Products..........................................23
Saipem............................................................17
Samsung .....................................................16
Sanofi..............................................................16
Siemens.........................................................12
Smith & Nephew.....................................23
Sony................................................................14
Standard Chartered...............................23
Stryker.....................................................16,23
Trafigura.......................................................16
Twitter...........................................................23
UBS..................................................................14
Valeant Pharmaceuticals..............13,22
Vallourec.......................................................17
ValueAct........................................................13
Vanguard......................................................13
Vestas.............................................................12
Wealthfront.................................................14
WhatsApp......................................................9
easyJet.....................................................12,15
Sectors
Airlines...........................................................15
Banks........................................................14,22
Financial Services..............................14,16
Financials.........................................14,22,24
Food & Beverage....................................22
Healthcare...................................................16
Industrials....................................................14
Mining.............................................................17
Oil & Gas.......................................................17
Pharmaceuticals.................................16,22
Retail & Consumer..................................13
Telecoms................................................16,22
People
Ackman, Bill...............................................24
Armour, Tim...............................................13
Bertolini, Mark..........................................23
Blankfein, Lloyd........................................16
Buffett, Warren.........................................13
Cao, Stefano...............................................17
Cavatorta, Enrico.....................................13
Chiarini, Alberto.......................................17
Collardi, Boris............................................14
Crouzet, Philippe.....................................17
Cryan, John.................................................14
Del Vecchio, Leonardo.........................13
Dell, Michael...............................................13
Dimon, Jamie..............................................13
Draghi, Mario.............................................22
Dudley, Bob................................................17
El-Erian, Mohamed................................24
Enkelmann, Dieter..................................14
Fink, Larry....................................................13
Gilvary, Brian..............................................17
Guerra, Andrea..........................................13
Haidamus, Ramzi.....................................16
Hirai, Kazuo................................................14
Jimenez, Joe...............................................16
Johnson, Abby..........................................13
Looney, Bernard.......................................17
McKay, Lamar............................................17
Mehboob-Khan, Adil..............................13
Novak, Alexander...................................22
O’Leary, Michael.......................................15
Palmer, Clive...............................................17
Putin, Vladimir...........................................17
Sorahan, Neil..............................................15
Soros, George...........................................24
Ubben, Jeff..................................................13
Weir, Jeremy..............................................16
Wiseman, Mark..........................................13
Witty, Andrew...........................................16
Woodford, Neil..........................................16
del Pino, Eulogio.....................................22

© The Financial Times Limited 2016 Week 5

14 ★ FINANCIAL TIMES Tuesday 2 February 2016

COMPANIES
INSIDE BUSINESS
Banks
FINANCE

Julius Baer warns of euro deposits charge Patrick

Jenkins
Lender weighs move if ECB “This is being considered, we are than in 2014. He gave no details. So far, 52.3 % Mario Draghi, ECB president, hinted
looking into it,” Dieter Enkelmann, European banks have been reluctant to in January that he was prepared to
sends interest rates deeper The decrease in

into negative territory

RALPH ATKINS — ZURICH
Julius Baer has warned that European
Central Bank moves to push interest
rates deeper into negative territory
could force it to impose charges on pri-
finance director, told a press conference
in Zurich. “It will be carefully imple-
mented.”
The warning came as Julius Baer
reported a 52.3 per cent fall in adjusted
net profits for 2015 to SFr279.2m
($274.5m). The drop was largely the
result of a $547.25m charge related to an
expected settlement with the US
impose charges on retail customers —
including in Switzerland, which is not
part of the eurozone but where the cen-
Julius Baer’s
adjusted net
profits for 2015
unleash a fresh round of eurozone mon-
etary stimulus as soon as March.
That could force a counter action by
Deutsche Bank shares
tral bank has pushed interest rates
deeper into negative territory than the $547.25 m
the Swiss central bank to prevent a
strong franc pricing Swiss companies
look cheap but think
ECB. One fear is that customers would
simply withdraw their money in cash.
Mr Collardi indicated charges on pri-
Charge relating
to an expected
settlement with
out of eurozone export markets.
Despite Mr Draghi’s hints, Mr Collardi
said that, over the longer term, global
twice before buying
vate investors’ deposits would be a last the US in a tax central bank activity would fall — and

vate investors’ euro deposits.
Banks across Europe have found it
increasingly costly to service clients’
bank accounts in an era of persistently
sub-zero official borrowing costs. Large
commercial and institutional clients
already face charges to offset the costs of
negative official interest rates.
But the Swiss bank’s comments sug-
gest private investors could face similar
negative interest rates.
Department of Justice in a tax investiga-
tion — part of a series of penalties
imposed on Swiss banks.
Assets under management rose 3 per
cent to SFr300bn. Excluding the US pro-
vision, adjusted profits were SFr701.5m,
up 20 per cent compared with 2014.
As a consequence of the US settle-
ment, Boris Collardi, chief executive,
said he expected his 2015 pay and that of
his senior colleagues would be lower
investigation
resort. Julius Baer would first advise
customers on “solutions that will have
positive returns”.
But the bank could not rule out even
imposing charges on retail clients’ Swiss
franc deposits.
“There is a point in time when it just
becomes uneconomical for us,” Mr Col-
lardi said. If Julius Baer imposed nega-
tive interest rates, he expected other
banks would as well.
N
volatility in financial markets would
rise as a result.
Separately, Julius Baer confirmed that
it had received inquiries from authori-
ties investigating corruption surround-
ing Fifa, world football’s governing
body, in Switzerland and the US.
Mr Collardi said an employee had
been dismissed, but played down wider
repercussions. “There is no reason to
have any fears,” he added.
ine years ago, Deutsche Bank’s share price was
nudging €100. Like other banks in early 2007,
Germany’s biggest lender had enjoyed a great
run. Its global investment bank was firing on
all cylinders. Business was booming at home.
Annual profits had come in at €6bn, up 70 per cent. Its
shares had jumped 24 per cent in a year. Josef Ackermann,
then chief executive, took home a €12m bonus on top of
his €1.15m salary, and hailed an “outstanding” bank,
delivering “excellent value to our shareholders”.
Today, Deutsche shares are trading at a record low of less
than €17, below even the nadir of 2009 when Mr Acker-
mann’s words — like most of his peers’ — already looked
pretty hubristic.

Adele and John Cryan, who this year takes sole charge of Deutsche,
did his best to flush out the worst of the bank’s hidden
problems last week. A €12bn slug of writedowns, litigation
James Bond charges and restructuring costs pushed the bank to a
€6.8bn loss for 2015. His clean-up has been so dramatic

boost Sony that bulls are now starting to ask: is it finally time to buy
Deutsche stock?
It is a fair question. Despite the clear progress, Deutsche
is now worth less in market capitalisation terms than Dan-
ske Bank — hardly a household name outside its Danish
Investors in Sony added $3.3bn to its homeland (€23bn vs €25bn). More scientifically, Deut-
market value yesterday, sending sche shares are trading at barely 30 per cent of the book
shares up 12 per cent after the value of its net assets. If only as a break-up target, Deutsche
company reported robust earnings is surely absurdly cheap.
boosted by the latest James Bond film That argument may in time prove right — sentiment is
and sales of a recent Adele album. hard to predict. But here are five reasons why there may be
Third-quarter earnings, released even worse ahead for Deutsche.
on Friday after markets closed, First, the group’s core business is investment banking.
included stronger-than-expected Back in 2006, more than 70 per cent of those record profits
profits and reassured investors that came from the corporate and investment banking divi-
chief executive Kazuo Hirai’s efforts sion. This unit still dominates the balance sheet but it is
to rejig the group were on track. now lossmaking and revenues slumped 30 per cent in the
The results reinforced the last three months of the year.
company’s growing reliance on its Mr Cryan says some of that decline was deliberate as the
entertainment and PlayStation bank pulls back from low-margin activities, but it is also
businesses after a decline of Sony’s losing out because of low morale and tough competition.
sales in the mobile phone and Even the top performers in the sector are challenged by
television market. For the third capital requirements that
quarter, its entertainment and game penalise the kind of trading
divisions accounted for 44 per cent of that was once at Deutsche’s
Deutsche is now
total operating profit. heart. worth less in
Sony’s quarterly net profit rose 34 Second, Deutsche’s scope
per cent from a year earlier to to pivot towards another
market cap
Y120.1bn ($993m). strong business line looks terms than
Sony slightly raised the full-year more limited than that of its
profit target for its games division European peers. It does not
Danske Bank
following strong sales of its have the wealth manage-
PlayStation 4 video game consoles. ment franchise of Credit Suisse or UBS. Nor does it have
Kana Inagaki Daniel Craig plays the credit card strength of Barclays.
James Bond in ‘Spectre’ Its unglamorous business of transaction banking — cash
management and trade finance — is growing steadily but
that is hardly the basis for an inspiring strategic vision.
And do not expect one soon. Mr Cryan is a clean-up expert,
not a visionary.
Financial services. Algorithms Third, Deutsche’s constraints would be tough enough
without a quartet of macroeconomic challenges. These

‘Robo-advisers’ move to calm investor nerves
Clients who rely on automated
portfolio management seek
reassurance in turbulent times
BEN MCLANNAHAN — NEW YORK
The biggest “robo-advisers” are relying
on old-school call centres and blog posts
to calm anxious investors, trying to per-
suade them that there is no need to
abandon the algorithms in times of
heightened volatility.
Automated investment services have
expanded rapidly in the US in recent
years, attracting mostly younger cus-
tomers with the promise of managing
pots of their money at a fraction of the
cost of a human being. Yet almost all of
that growth has been achieved in a gen-
tly rising market — prompting some tra-
ditional rivals to predict that once prices
drop and tensions rise, clients will no
longer be happy to be guided by soft-
ware.
Charles Schwab, which has raced to
about $5.3bn in assets under manage-
ment since launching its robo service
last March, says that it has asked staff to
work longer hours to cope with a
roughly one-third increase in calls from
customers since December. Online
chats have picked up too, as customers
have sought advice on rebalancing port-
folios and optimising tax bills amid the
rougher environment of the past few
weeks.
“There are times when people just
want to talk — even if it’s just to rein-
force that they’re doing the right thing,”
said Tobin McDaniel, San Francisco-
based president of Schwab Wealth
Investment Advisory, which offers robo
services to clients with at least $5,000 to
invest.
“Without access to a professional
when the market gets choppy, there’s a
risk that some investors might make
emotional decisions that they’ll regret
later.”
Analysts say last month’s stock mar-
ket slump — the worst start to the year
for the S&P 500 for more than a decade
— was a test for a fledgling industry that
has lured dozens of start-ups, such as
Wealthfront and Betterment, as well as
fund giants Fidelity and Vanguard and
brokers such as Schwab.
This new breed of robo-advisers
accounts for less than $100bn of AUM in
a US market worth at least $30tn. But
Deloitte estimates that the robots could
be managing $5tn to $7tn by 2025, as the
biggest wealth management brands
start to compete more aggressively.
Morgan Stanley has said it is looking at a
hybrid model — human advisers “aug-
mented” by digital technology — while
Bank of America Merrill Lynch is poised
to launch an automated offering that
could “complement” financial advisers,
according to a spokesperson.
Robo-advisers require customers to
‘In these complete an online questionnaire on
their goals and risk appetite. The soft-
volatile ware then selects a portfolio, often
markets is focusing on cheap exchange traded
funds, and periodically rebalances to
where an optimise profits and taxes.
automated Most of the worried callers to
Schwab’s Intelligent Portfolios service
service did not do anything with their accounts
shines’ after hanging up, said Mr McDaniel, not-
ing that less than 1 per cent of about
63,000 accounts changed their risk pro-
file or portfolio composition in the first
three weeks of 2016.
Daniel Egan, director of behavioural
finance and investing at New York-
based Betterment, said the firm had
received higher volumes of calls and
emails in recent weeks, and was trying
to ease concerns by providing “very per-
sonalised, very positive” notifications
when customers log in.
Palo Alto-based Wealthfront, where
60 per cent of clients are under 35 and
90 per cent under 50, said that it had
directed customers to online essays by
Burton Malkiel, the firm’s veteran chief
investment officer, who wrote the 1973
book, A Random Walk Down Wall Street.
“This generation has already been
through two crashes; they have no illu-
sions that a professional could somehow
beat the market or protect them in a
downturn,” said Adam Nash, chief exec-
utive. “In these volatile markets is
where an automated service shines. The
beauty of the computer is that it doesn’t
care, it’s open for business every day.”
are: the European Central Bank’s monetary policy, which
is restricting interest margins; the economic slowdown in
China, Germany’s third-largest trading partner; the poten-
tial problem of Brexit for any bank with thousands of
employees in the City of London; and the risk that the
migrant crisis — particularly acute in Germany — poses to
Schengen, the EU-without-borders regime that has given a
significant boost to economic productivity. This boost
would be reversed if lorries were stuck in border queues
instead of plying the autobahns.
Fourth, Deutsche will book more “exceptional charges”.
Last year, the bank set aside more than €5.2bn to cover
pending litigation. There will be more this year.
Probes into its Russian business and its involvement in
the structuring of residential mortgage-backed securities
are the big risks. Last autumn, the US Department of Jus-
tice and the New York Department of Financial Services
widened their investigation of alleged money laundering
at the Russian unit to look at suspected sanctions
breaches.
Fifth, the idea that Deutsche could be bought by a rival is
flawed. As a systemically important financial institution
(Sifi), it is hard, if not impossible, to see regulators sanc-
tioning a takeover.
So far, Deutsche has not even come under the kind of
activist investor pressure that could lead to a break-up.
The problem for any activist — as for Mr Cryan — is to set-
tle on a business activity that is large enough and sustaina-
bly profitable enough to define Deutsche’s future. For the
sake of all Deutsche’s stakeholders, including Germany
itself, a solution is vital.
patrick.jenkins@ft.com

Banks Financials

UBS hires ex-Brevan Howard partner Pande
MILES JOHNSON
UBS has hired a former Brevan Howard
partner to advise its ultra-wealthy fam-
ily office clients on the market impact
of the US Federal Reserve’s withdrawal
from its post-crisis policy of ultra-low
interest rates.
UBS Wealth Management has
appointed Vinay Pande into a new posi-
tion. He will be head of trading strate-
gies in its chief investment office, cater-
ing to what the bank calls “ultra high net
worth” clients, alongside a team that
worked with him at Brevan Howard.
The hire comes as many hedge funds
have been left bruised by their inability
to navigate the current market environ-
ment, with large bets on a strengthening
US dollar failing to compensate for
losses on other trades, which led to the
industry as a whole losing money for
investors last year.
Simon Smiles, head of the ultra high
net worth team at UBS, said the bank
was appointing Mr Pande, who formerly
served as chief investment officer of the
World Bank, to use his expertise in
macro hedge fund management to find
short-term trading opportunities cre-
ated by rising interest rates and cur-
rency movements.
“Looking at market performance this
year and last year we think we are more
likely to have less bullish markets,” said
Mr Smiles. “We have had a pretty good
run over the last seven years, so we are
now looking for ways to navigate more
volatile markets. If we are in an environ-
ment where there is more volatility you
need to find ways to make money from
short-term opportunities.”
Mr Pande left Brevan Howard last
year around the time the hedge fund
decided to part company with several
partners after its main hedge fund suf-
fered its first ever loss over a calendar
year in 2014.
Before working at Brevan Howard, Mr
Pande was chief investment adviser at
Deutsche Bank.
Bonuses shrink in shift to higher fixed salaries
JOSEPH COTTERILL — LONDON
The world’s banks, insurers and invest-
ment managers continued to cut staff
bonuses last year in favour of increas-
ing fixed salaries, according to a new
survey.
A majority of companies polled by con-
sultants Mercer increased fixed pay for
staff by more than 5 per cent and
decreased bonuses by a similar amount.
Few of the companies that responded
had plans to raise pay offers markedly
this year, in a sign that regulations to
limit bonuses are continuing to bite.
This year fund managers in Europe
have launched a fight to block proposals
to extend bonus caps, which apply to
banks, to the investment industry.
The European rules limit bonuses to
twice fixed pay for key executives with
shareholder approval and require up to
40 per cent of the amount to be deferred
for at least three years.
Regulations are being tightened else-
where with the Bank of England clamp-
ing down on so-called bonus buyouts for
bankers switching jobs.
“Ratio caps are not affecting organi-
sations’ compensation and benefits
costs for the most part. If compensa-
tion and benefits are being affected,
they are only slightly lower or higher
than pre-cap levels across all indus-
tries and regions,” the report said.
Base salaries in financial services
worldwide are expected to increase by
2-3 per cent on average, the survey
found, including less than 2.5 per cent in
North America and Europe.
“There continues to be a concern that
increasing the focus on fixed guaranteed
pay breaks the link between pay and
performance, and may actually be
counter-productive for aligning pay
with risk,” said Dirk Vink, a principal at
Mercer and co-author of the report.
Banks in particular are also increasing
“role-based allowances” in addition to
making fixed salary a greater part of
overall compensation, the survey said.
Tuesday 2 February 2016
Ryanair’s new
flight path pays
off for investors
Planned €800m share buyback is
strongest evidence of recovery yet
TANYA POWLEY — LONDON
Ryanair plans to return €800m to
investors through its largest share
buyback to date, highlighting how
Europe’s leading budget airline has
made significant progress to overhaul
its aggressive image and poor customer
service.
The Dublin-based low-cost carrier
yesterday reported third-quarter net
profit of €102.7m, up 110 per cent com-
pared with the same period in 2014.
The €800m buyback is the strong-
est evidence yet of Ryanair’s recovery
after two profit warnings in the
autumn of 2013, when Michael O’Leary,
its outspoken chief executive, admitted
the company annoyed too many
passengers and promised a strategy
overhaul.
Changes to Ryanair’s business model
included cutting baggage fees and other
charges that put some people off travel-
ling with the airline. It also sought to
copy easyJet’s strategy of wooing busi-
ness people, partly by announcing plans
to fly to more major European hubs
rather than obscure airports far from
city centres.
The company credits this new
approach for the improvement in its for-
tunes, which saw it become the first air-
line to carry 100m international passen-
gers during a single year in 2015. Last
September, Ryanair raised its full-year
profit guidance for the year to March
2016 by 25 per cent, to a range of
between €1.17bn and €1.22bn.
“They have radically transformed
their business and the exciting thing is it
seems like they’ve still got a long way to
go,” says Oliver Sleath, an analyst at Bar-
clays.
★ FINANCIAL TIMES 15
COMPANIES
But not all of Ryanair’s recent
progress is down to its new strategy.
European airlines in general are benefit-
ing from Europe’s modest economic
recovery and lower fuel prices. Even Air
France-KLM and Lufthansa, flag carri-
ers hit by strikes, are predicting record
profits for 2015.
There have also been setbacks. Rya- Chris Radburn/PA
nair’s third-quarter earnings missed
analysts’ expectations because it felt
compelled to cut fares after November’s
Ryanair
terrorist attacks in Paris, which caused Profit after tax (€bn) Capital returns (€bn) Share price and index (rebased)
some people to shun air travel. 1.5 0.8 300
The airline said average fares fell 1 per Special dividends
cent to €40 in its third quarter, and 250
1.0 Buybacks 0.6
warned they could decline by 6 per cent
in the three months to March 31. 200
Ryanair is not the only transport Ryanair
0.5 0.4 150
group to be affected by the Paris attacks.
Last week, easyJet warned its revenue 100
per seat in the three months to Decem- 0 0.2
ber 31 was due to fall, while Stagecoach, 50
the bus and train operator, said last year European airlines index
-0.5 0 0
its earnings could be affected. 2008 10 12 14 16* 2008 10 12 14 16 17 2008 10 12 14 16
Ryanair also warned that its fourth * Q1 to Q3
quarter and next financial year could Sources: company; Thomson Reuters Datastream
see average fares hurt by unfavourable
currency movements and a €2.50
increase in Italy’s municipal tax that is ‘They have continues to be industry leading and He partly justified this stance by of 2013 it agreed to buy 175 short-haul
levied on passengers. falling.” referring to a volcanic eruption in Ice- passenger jets from Boeing in a $16bn
However, analysts say Ryanair transformed Plans for the €800m buyback come land in 2010 that caused travel chaos by deal.
has allayed fears that changes to its their after Ryanair said in September it would causing some of the biggest European Such is Ryanair’s confidence that it
business model, notably its move into hand €400m to shareholders after the airspace closures since the second world confirmed yesterday that it expected to
more major European airports, would business and sale of its 29.8 per cent stake in Aer Lin- war. hit the upper end of its net profit target
result in significantly higher costs. the exciting gus to International Airlines Group, “It’s a very cyclical industry, you can for 2015-16. It also predicted it will carry
Ryanair said it expected unit costs owner of British Airways. This is being wake up to find a volcano erupting in 106m passengers.
excluding fuel to fall by 2 per cent in thing is it supplemented in 2015-16 by a €400m your back yard, so we don’t want to Airline coverage This momentum looks unlikely to
2015-16. buyback. commit to a regular dividend,” he said. For further disappear. Ryanair is aiming to carry
“The shift in strategy seems to have
seems like While investors have benefited from “We prefer to do ad hoc chunky buy- analysis of the 180m passengers a year by 2024, by
worked well in the context of cash,” says they’ve still ad hoc capital returns, Neil Sorahan, backs . . . which we think is a better
latest industry
developments, which time Mr O’Leary is targeting net
Stephen Furlong, an analyst at Davy, got a long Ryanair’s finance director, said the air- position for our shareholders.” go to profit of €2bn.
Ryanair’s broker. line had no plans to commit to a regular Ryanair needs its new customer Additional reporting by Nathalie Thomas
“It’s a cash machine. And the cost base way to go’ dividend or share buyback. service strategy to work — in the spring
ft.com/airlines
See Lex
16
Big pharma’s business model under
the microscope amid calls to break up
Shareholders seeking higher returns urge manufacturers to review their sprawling portfolios
ANDREW WARD — LONDON
DAVID CROW — NEW YORK
Some of the world’s biggest pharmaceu-
ticals groups are facing calls to break up
their diversified businesses in favour of
greater focus as shareholders push for
higher returns on investment.
In recent days, Johnson & Johnson has
been urged to review its sprawling port-
folio that ranges from baby oil to cancer
drugs, and there were questions for
Novartis over the future of its struggling
eyecare business.
This week, Pfizer will update share-
holders on plans for a potential
break-up, while GlaxoSmithKline is
likely to be pressed on whether it is con-
sidering a similar move.
All four cases are part of a
wider debate: should companies hedge
the risks of drug development by diver-
sifying into adjacent markets such as
contact lenses (Novartis), toothpaste
(GSK) and knee implants
(Johnson & Johnson)? Or is it better to
focus resources on the higher-margin
business of making medicines?
Disposals of non-core assets
by several big pharma groups in recent
years has put the latter approach firmly
in the ascendancy. Merck of the US, for
example, jettisoned its consumer
healthcare business — with brands
including Coppertone sunscreen
and Dr Scholl’s footcare — to sharpen its
‘We will continue to
see pharma companies
shrink to grow’
David Butts
competitive edge against “pure-play”
drugmakers such as Bristol-Myers
Squibb, AstraZeneca and Gilead Sci-
ences.
Meanwhile, Abbott and Baxter, two
diversified US healthcare groups, spun
off AbbVie and Baxalta, respectively, as
standalone pharma companies.
Even drugmakers which remain rela-
tively diversified have taken steps to
slim down. Novartis (animal health and
vaccines), Bayer (plastics), Sanofi (ani-
mal health) and Pfizer (animal health)
have relinquished unwanted businesses
or are in the process of doing so. Pfizer is
planning to go further with the likely
separation of its “established products”
portfolio of older drugs by 2019.
“We will continue to see pharma com-
panies shrink to grow,” says David Butts,
head of international life sciences merg-
ers and acquisitions at CMS, a law
firm. “You could say this is a move
towards . . . pure play, as companies
unlock value in non-core businesses,
then use cash to shore up the core
business.”
This trend has left the most
diversified drugmaker, J&J, look-
ing increasingly out of step.
Pharma is the US group’s largest
business but accounts for less
than half of total sales; the rest
comes from medical devices and
consumer products including
Tylenol painkillers and Listerine
mouthwash.
Critics say this model leads to mud-
★ FINANCIAL TIMES
COMPANIES
Molecular breakdown
GSK Johnson & Johnson
Revenues, 2014 ($bn) 40 Revenues, 2014 ($bn)
Consumer healthcare
30
Vaccines
20
Pharmaceuticals 10
0 0
Novartis Pfizer
Revenues, 2015 ($bn) Revenues, 2014 ($bn)
50
Eyecare (Alcon) 40 Global innovative products – new drugs
Generics (Sandoz)
30
20
Global established pharmaceuticals
Pharmaceuticals 10
0 0
Pharma slimming down
Deal value ($bn)
Jan 2013 Apr 2014
Abbott Labs spins off its Novartis sells its vaccines
AbbVie drug development division to GSK and puts
business its consumer assets into a May 2014
Merck sells its
joint venture controlled
Feb 2013 consumer
Pfizer spins off
by the UK group; Eli Lilly
division to Bayer
acquires Novartis's
Zoetis, its animal animal health business
health unit
Jul 2015
Baxter spins off
its Baxalta drug
development arm
5.2 5.4
64.0 14.7 14.2
2013 2014
FT graphic Sources: company; Dealogic; FT research
dled management as businesses with
different growth rates and capital needs
vie for resources. In an open letter last
week, Artisan Partners, an investment
manager with a $480m J&J holding,
called for a spin out of the consumer and
medical devices units “so that new,
focused and accountable management
teams can lead them into the future”.
However, there has so far been little
sign of other investors rushing to back a
break-up. Alex Gorsky, J&J chief exec- Decisive
utive, said last week that the con- moment looms
glomerate model had been “a signif- for UK maker of
medical
icant driver [of growth] in the past marijuana
and we expect it will be more Trial results for
important in the future”. Epidiolex crucial
J&J says it benefits from for GW Pharma
research and development collab- — the first UK
company to test
oration between different parts of
cannabinoid
the group; it also touts the ability
market
to jointly market drugs and
devices to hospitals — giving it ft.com/
pharmaceuticals
greater bargaining power at a
Healthcare
M&A activity hits $56bn as
groups rush to strike deals
JAMES FONTANELLA-KHAN — NEW YORK
Despite suffering a sharp sell-off in Jan-
uary, global healthcare companies’
appetite for mergers and acquisitions is
far from over as deal activity has more
than doubled to $56bn compared with
a year ago, according to a Financial
Times analysis.
Abbott Laboratories, the US healthcare
heavyweight, was the latest to strike a
deal after announcing yesterday that it
had agreed to acquire Alere, a diagnostic
group, for $5.8bn. On the same day, US
medical device group Stryker also
unveiled a $2.8bn deal to buy Sage,
which makes products to prevent infec-
tions in hospitals.
The brisk deal activity — up from
$20.5bn during the same period a year
ago — comes despite healthcare and bio-
tech stocks suffering extreme volatility
in the first month of the year, usually a
deterrent to any dealmaking.
The S&P healthcare index is down
more than 8 per cent since January 1,
while the Nasdaq biotech index has
dropped nearly 22 per cent.
Bankers advising healthcare compa-
nies said that many of their clients,
80
Consumer healthcare
60
Medical devices 40
20
Pharmaceuticals
50
40
Global vaccines, oncology 30
and consumer healthcare
20
(mature products)
10
Dec 2015
Oct 2015 Sanofi in talks with
Bayer spins off Boehringer Ingelheim to
its Covestro swap its animal health unit
plastics division for the German company's
consumer health business
20.3 1.7 7.3 12.4
2015
time when US health systems are
clamping down on costs.
Matt Miksic, a healthcare analyst at
UBS, says there will always be worries
about J&J’s conglomerate structure
“making them slower and harder to
manoeuvre”.
He agrees, however, that its breadth of
products promises to be an advantage in
an era when President Barack Obama’s
Affordable Care Act has created greater
incentives for hospitals to bulk-buy.
J&J executives argue that the
company would not have weathered
the financial crisis nor its big patent
cliff — the loss of market exclusivity
on branded drugs — were it not
for the stability of its medical devices
unit.
“The management view is that the
device business is a kind of anchor and
cash generator, with slower, but less vol-
atile growth that can support the
pharma division,” says Mr Miksic. How-
especially those that did not strike a deal
in 2015, were very focused on M&A this
year. “The correction in the market is
more of an opportunity than anything
else for many large healthcare compa-
nies as they have plenty of cash and val-
uations have suddenly become more
attractive,” said an adviser to some of
the largest US pharma companies.
Overall M&A activity in the health-
care sector hit a record $724bn last year,
up 66 per cent from $436bn in 2014, and
representing about a fifth of all transac-
tions. Abbott will pay Alere sharehold-
ers $56 a share to take control of a com-
pany that specialises in medical tests for
infectious diseases, such as HIV, tuber-
culosis, malaria and dengue. Alere will
become a subsidiary of Abbott in a deal
that is expected to result in annual pre-
tax synergies of $500m by 2019.
Stryker said that the acquisition of
Sage, which makes products for oral
care, skin preparation and patient
hygiene, would generate future tax ben-
efits worth about $500m.
The largest deal of the year so far is
Shire’s $32bn takeover of Baxalta. UK-
listed drugmaker’s cash and stock trans-
action valued Baxalta at $45.57 a share.
ever, he adds: “The rationale for keeping
a consumer division is a little more
frayed.”
GSK is likely to face similar questions
when Sir Andrew Witty, chief executive,
delivers full-year results tomorrow.
About 45 per cent of its revenues come
from vaccines and consumer health-
care, including Sensodyne toothpaste
and Panadol painkillers.
Like Mr Gorsky, Sir Andrew argues
that these businesses create a healthy
buffer for the risks and volatility of the
pharma market, where a failed clinical
trial or loss of patent protection can
upend a pure-play drugmaker over-
night.
Moreover, GSK executives point to
synergies from manufacturing and sell-
ing prescription drugs, vaccines and
over-the-counter products through
shared supply chains.
“If you split the businesses up you
would end up duplicating a lot of things
that are currently done efficiently
together,” says one executive.
However, GSK is under pressure from
some investors for a shake-up after a
long period of weak performance.
Neil Woodford, below left, the high-
profile UK fund manager and big GSK
shareholder, told the BBC this month
that the group was “like four FTSE 100
companies bolted together” and did not
“do a particularly good job of managing
all of the constituent parts”. Like at J&J,
‘The consumer division is
so big in scale, it could one
day have a life of its own’
Sir Andrew Witty
there has not so far been a groundswell
of investor support for his view.
But Sir Andrew has become increas-
ingly open in acknowledging the possi-
bility of a break-up even though he says
he does not believe it makes sense today.
He told Bloomberg TV this month:
“The consumer division is so big in
scale, it could one day have a life of its
own.”
Joe Jimenez, Novartis chief executive,
told the Financial Times that there were
still benefits from diversification pro-
vided the components were all “leading
businesses with global scale and innova-
tive power”.
Analysts say the jury is out on
whether the Swiss group’s Alcon eyecare
unit fits that criteria after disappointing
financial results last week.
Until recently, the attitude of inves-
tors seemed clear. Shares in Bristol-My-
ers Squibb, a pure-play pharma com-
pany among the leaders of a new gener-
ation of high-value cancer drugs, have
almost doubled since the start of 2013,
compared with rise of just 3 per cent in
GSK.
However, in the year-to-date, Bristol-
Myers Squibb is down 11 per cent and
GSK is up nearly 5 per cent. J&J is also up
since the start of the year. This could
reflect rising hopes of restructuring
ahead. But it might also be a sign that, as
the global economic outlook dims,
investors are reconsidering the merits of
a business model designed to reduce
volatility and spread risks.
Financial services
Concord secures $250m credit
from Goldman commodity arm
HENRY SANDERSON AND NEIL HUME
Concord Resources, a newly formed
trading house that has launched into
one of the worst commodity slow-
downs in more than a decade, has
secured a $250m credit line from a sub-
sidiary of Goldman Sachs.
The one-year facility with J Aron, the
bank’s commodity arm where Lloyd
Blankfein, Goldman’s chief executive,
spent his early career, will be used to
support Concord’s trading activities.
The company’s expansion comes as
some of the world’s largest commodity
trading groups are retreating from the
sector. Switzerland-based Gunvor is to
“downsize” its metals business as it
focuses on its core oil and gas activities,
according to an internal memo seen by
the Financial Times.
Commodity traders, who help shift
metals and oil across the world from
producers to consumers, are battling
some of the most difficult trading condi-
tions in years, as prices have fallen to
their lowest levels since the financial cri-
sis amid a glut of supply and slower
growth in China.
Last year, Swiss-based company
Tuesday 2 February 2016
Telecoms
Nokia slides
as Samsung
patents deal
disappoints
investors
DANIEL THOMAS
TELECOMS CORRESPONDENT
Shares in Nokia dropped to their lowest
level in almost six months after the
financial terms of a deal to share its
mobile phone patents with Samsung
disappointed investors.
A deal struck with the South Korean
group yesterday resolved a longstand-
ing patent dispute, which Nokia said
would help almost double the revenues
it made to about €1bn in 2015.
Net sales at Nokia Technologies, the
unit that licenses the group’s patents,
were expected to increase to about
€800m every year following the award,
the company said, but this was less than
the €900m expected by analysts. Shares
in Nokia fell 13 per cent, the largest drop
in a single day since last April.
Pierre Ferragu, an analyst at Bern-
stein, estimated that Samsung would
increase its annual payments by about
€115m, although Nokia did not break
out the exact number. He added that
this was “a major disappointment for
investors” despite meeting the lower
end of his estimates. Mr Ferragu blamed
hype around the potential of Nokia to
generate money from licensing reve-
nues when extracting royalties in a satu-
rated smartphone market has become
increasingly difficult.
Nokia owns one of the largest portfo-
lios of the patents that are needed to
manufacture smartphones and other
mobile devices, which the Finnish group
retained following the sale of its devices
business to Microsoft two years ago.
Nokia also controls the Alcatel-Lucent
portfolio of patents following its acquisi-
tion of the French group.
The agreement between Nokia and
Samsung was set by the International
Court of Arbitration of the International
Chamber of Commerce covering a five-
year extension of a licence agreement
that oversaw certain patents from the
start of 2014.
Ramzi Haidamus, president of Nokia
Technologies, said: “We welcome the
additional compensation payable to
Nokia under the extended agreement.”
Nokia said Nokia Technologies would
report net sales of about €400m in the
fourth quarter 2015 and €1bn for the
full year 2015. This includes “catch-up
revenue” because the court award
exceeded revenue estimates already
recognised for the period. Nokia expects
to receive at least €1.3bn of cash
between 2016 and 2018 related to pat-
ent arbitrations.
Mr Ferragu said intellectual property
right revenues were only a “very small
moving part” for Nokia, however. “One
should expect IPR payments to grow
more towards the lower end than the
higher end that we have been describing
in recent years. This represents a small,
low-single-digit percentage moving part
to the earnings power we anticipate for
Nokia on a three-year horizon.”
Telecoms
News, comment and analysis on
all aspects of the telecoms
sector
www.ft.com/telecoms
Trafigura closed its Galena metals trad-
ing fund. That led its chief executive Jer-
emy Weir to warn in the company’s
annual report that “commodities trad-
ing will in future be a business for large
firms with diversified and well-financed
trading interests or for small specialists.
It will certainly not be a hospitable envi-
ronment for midsized, undercapitalised
or unfocused players”.
Glencore, the Swiss-based commod-
ity company that trades and mines met-
als such as copper, zinc and nickel, has
suffered a 64 per cent fall in its share
price over the past year.
Concord was formed last year by trad-
ers who used to work at Noble Group,
the commodity trader that is battling
allegations of aggressive accounting.
Tuesday 2 February 2016
Oil & gas
BP moves pave way for Dudley succession
Senior promotions viewed
as preparing the ground
for chief ’s retirement
CHRISTOPHER ADAMS — ENERGY EDITOR
BP’s Bob Dudley has promoted two sen-
ior executives into top roles in a move
seen by UK investors and analysts as
preparing the ground for his possible
retirement.
The elevations of Lamar McKay, 57, to
deputy chief executive and Bernard
Looney, 45, to head the oil major’s
upstream — or exploration and produc-
tion — business paves the way for an
internal successor to Mr Dudley.
Mr Dudley, 60, took over as chief
executive nearly six years ago in the
immediate aftermath of the Deepwater
Horizon disaster in the Gulf of Mexico.
An industry veteran, he started at
Amoco in 1979 and joined BP when it
Tycoon-turned-politician’s party loses its fizz
Commodities downturn and
parliamentary dogfights weigh
on Australia’s Clive Palmer
JAMIE SMYTH — SYDNEY
In November 2010, Clive Palmer
donned a Santa hat and posed in front of
photographers as he gave A$10m of
Christmas bonuses, including 55 Mer-
cedes cars, to staff at Townsville’s Yab-
ula nickel refinery.
It was the height of the commodities
boom and the Australian mining mag-
nate, who later turned his hand to poli-
tics, was celebrating the success of his
acquisition of Queensland Nickel from
BHP Billiton in 2009.
“It [Queensland Nickel] provides me
with about US$250m of beer money a
year. That’s why I’ve got larger and fat-
ter, thanks to BHP,” he later joked to
mining executives.
But the subsequent collapse in nickel
prices has put paid to celebrations at
Queensland Nickel, which was placed in
administration last month with debts of
A$100m. It has also raised questions
about the financial health of Mr
Palmer’s troubled business and political
empire, which Australian Electoral
Commission data published yesterday
‘The political party was
run as a wing of his
businesses . . . and was
funded by his companies’
showed were connected. Between 2013
and 2015, Queensland Nickel made two
donations of A$15m and A$6m to the
Palmer United party — the political
party founded by the colourful 61-year-
old businessman in 2013 and which won
several seats in parliament in the Sep-
tember election that year. Mineralogy,
another company owned by Mr Palmer,
donated A$3.6m in 2014-15.
The political donations were by far
the highest recorded by an Australian
company last year and payments con-
tinued even as commodity prices fell
and Queensland Nickel faced mounting
financial woes.
Administrators at FTI Consulting told
a creditors’ meeting on Friday that they
were likely to ask the courts to extend
their period of appointment to “com-
plete thorough investigations” of the
company’s finances.
Mr Palmer is not listed as a director of
Queensland Nickel, which was managed
by his nephew Clive Mensink. However,
Malcolm Turnbull, Australia’s prime
minister, has described Mr Palmer’s
management of Queensland Nickel as
“shocking”.
“It’s been a very disappointing — very
disappointing for someone that’s sought
to hold himself up as a champion,” said
Oil & gas
Saipem claims €759m over cancelled pipeline
JACK FARCHY — MOSCOW
JAMES POLITI — ROME
Saipem, the Italian oil services group,
has filed a €759m claim against
Gazprom at the International Chamber
of Commerce in Paris following the
cancellation of the South Stream
project to pipe Russian gas to Europe.
For the Russian state gas group, the
claim highlights the cost of its attempts
to build a pipeline across the Black Sea,
which have twice been scuppered by
★ FINANCIAL TIMES
merged with the US oil group in 1998. He
later led the Russian joint venture,
TNK-BP, before the company fell out
with its partners and sold to Rosneft.
Analysts said the appointments of Mr
McKay and Mr Looney had bolstered
their credentials as possible successors,
depending on when Mr Dudley chose to
‘Dudley
step down. Brian Gilvary, chief financial maybe has
officer, who led last year’s US settlement two years
talks over Deepwater Horizon, could
left. BP is
also be a candidate.
Mr McKay takes on an expanded role, promoting
which includes “strategy and long-term
those
planning, safety and operational risk,
technology and corporate governance,” people who
BP said in a statement. He keeps respon-
sibility for BP America, one of its biggest have the
businesses and where it has plans for right skills
growth. Mr Looney, currently chief
operating officer for upstream produc- for this
tion, will take over from Mr McKay as point in
upstream chief executive.
“These changes simplify, focus and time’
Mining. Turnround test
3 In the early 1970s, Clive Palmer drops
out of university to become a real estate
agent and developer.
3 In 2006, Chinese state company Citic
Highs and pays Mr Palmer’s Mineralogy US$415m
lows on as part of a deal to develop a $6bn iron
ore mine in Western Australia.
road to
parliament 3 In 2008, Mr Palmer buys Gold Coast
United football club. Football authorities
revoke his licence for the team in 2012.
3 In 2009, Mr Palmer buys Queensland
Nickel from BHP Billiton for an upfront
payment of as little as $10m.
3 In 2011, Mr Palmer buys the Hyatt
Regency Coolum Resort in Queensland.
In 2013, the resort loses the right to host
the Australian PGA golf championship.
3 In 2012, Mr Palmer falls out with his
Chinese partners amid mine delays.
Mineralogy sues Citic over royalties.
3 Mr Palmer falls out with the Liberal
National party, which he had supported.
He founds the Palmer United party in
2013 and is elected as an MP.
political disputes in little over a year. In agreement with Turkey despite months
December 2014, the original South of negotiations. Now, officials say there
Stream project was abruptly cancelled is little chance of those talks resuming
by Russia’s President Vladimir Putin on after the shooting down of a Russian
a visit to Ankara in Turkey, amid objec- military jet by Turkey in November.
tions from the European Commission. Saipem won the contract to build the
Gazprom, which had spent billions of first line of the original South Stream
dollars ordering pipes and improving and was then selected for the same role
infrastructure on the Russian side of the in Turkish Stream, but the contract was
Black Sea, rapidly repurposed the plan cancelled by Gazprom last summer.
as Turkish Stream, with the pipeline set South Stream Transport, the pipeline
to make landfall in Turkey rather than project company owned by Gazprom,
Bulgaria. But Russia failed to reach an said it would defend the claim.
COMPANIES
better align accountabilities within our
experienced and versatile senior team.
In particular, Lamar’s new role will
allow us to further concentrate our
attention on BP’s highest priorities
through this challenging time for our
whole industry,” said Mr Dudley.
Analysts expect BP today to report a
66 per cent decline in fourth-quarter
profits from a year ago following the col-
lapse in oil prices. It is in the middle of a
steep cost-cutting programme to shore
up cash flow and protect its dividend. It
may outline even deeper reductions to
this year’s capital spending than the
$19bn projected in October. A BP
spokesman said the changes were not
linked to succession planning.
But some investors and analysts inter-
preted the personnel changes as prepa-
ration for a handover within the next
12-18 months, possibly sooner. They
declined to comment publicly because
they did not want to be seen as speculat-
Mr Turnbull. Mr Palmer did not return
phone calls to the Financial Times, but
on Friday he rejected Mr Turnbull’s crit-
icism. He said that he had protected the
jobs of the 800 workers at Yabula refin-
ery since 2009 when he took over from
BHP, which had planned to shut the
plant.
“For the prime minister to criticise
the management of the company indi-
cates how ignorant he really is,” he said.
Mr Palmer’s wealth has long been a
matter of speculation in Australia,
where he cut his teeth as a developer
during the Gold Coast’s 1980s property
boom. His companies remain private
with no obligation to publish financial
results, and estimates of his fortune
have varied widely over the years.
Mr Palmer first came to global atten-
tion in 2006 when he signed a deal with
Chinese state company Citic to develop
an iron ore mine in Western Australia.
Citic paid Mineralogy US$415m upfront
and agreed to pay royalties on every
tonne of ore shipped.
But a combination of delays, technical
difficulties and a collapse in iron ore
prices has led to a series of bitter legal
disputes. Signs of financial distress at
Mineralogy were documented at a court
ing about leadership. “Dudley maybe
has two years left. BP is promoting and
rewarding those people who have the
right skills for this point in time, which
is about relentless focus on operational
cost-cutting,” said one shareholder.
One analyst argued that Mr Looney,
who joined BP in 1991 as a North Sea
engineer, would be the leading candi-
date to be the next chief executive
because oil groups often turn to the
head of their upstream businesses for
the top role.
“He’s young, charismatic, very
dynamic and a good leader,” said the
analyst.
However, others suggested that Mr
Dudley’s retirement could come too
soon for Mr Looney and that the
appointment of Mr McKay, with a wider
global remit, made him the likelier suc-
cessor. “To make him deputy CEO is to
try to get him up to speed with how Dud-
ley works,” said another analyst.
As nickel prices hearing in December when a judge
have collapsed, rejected Mr Palmer’s call for Citic to pay
the Australian his company US$48m for allegedly
magnate Clive owed royalties.
Palmer has seen Last month, administrators were
the fortunes of appointed to Palmer Aviation, the com-
his business pany that owns Mr Palmer’s US$40m
empire wane, private jet bearing the logo of his politi-
and his PUP cal party spray-painted on the fuselage.
political party is The success of the PUP in the Septem-
also facing ber 2013 election caught many analysts
difficulties — by surprise when Mr Palmer and four
Matthew Lloyd/Bloomberg
PUP-affiliated senators were elected to
parliament on a populist platform that
cashed in on disenchantment with
mainstream politics. For a time the
party wielded considerable influence in
the Senate before infighting caused all
but one senator to resign from the party.
Ahead of this year’s general election
analysts expect continuing financial dif-
ficulties will hurt PUP, which depends
on donations from Mr Palmer’s compa-
nies to fund its advertising campaigns.
“The political party was run as a wing
of his businesses,” says Duncan McDon-
nell, a lecturer at Griffith University. “It
was staffed by the same people that ran
his businesses and funded by his com-
panies. It looks like the party is over for
Clive Palmer in politics and in business.”
Business Opportunities
Readers are strongly recommended to take appropriate
professional advice before entering into obligations.
17
Industrials
Vallourec
plans global
shake-up as
energy price
falls bite
MICHAEL STOTHARD — PARIS
Vallourec has announced plans to
halve its European production capacity
and raise about €1bn as the French
steel manufacturer becomes the latest
victim of falling energy prices.
The group, which produces tubes for the
oil and gas industry, has announced
plans to boost profitability by closing
plants in France, Germany and Scotland
as well as reshaping its foreign opera-
tions with deals in China and Brazil.
The plan is supported by the French
state and Nippon Nippon Steel & Sumi-
tomo Metal, which will each take a 15
per cent stake in the company for a total
of €490m. Another €510m will come
from a rights issue.
“Our plan significantly adjusts our
industrial footprint in Europe, to
address overcapacity and focus on
highly specialised activities in France
and Germany,” said Philippe Crouzet,
group chief executive.
The collapse in oil and gas prices that
began in 2015 has already cost hundreds
of thousands of jobs globally, and caused
projects worth hundreds of billions of
dollars to be cancelled or delayed.
Some of the worst hit have been sup-
pliers to the sector, as energy groups
have cut capital spending. BP said in
October last year that it proposed to
spend about $19bn this year, down from
an original plan of $24bn-$26bn.
Vallourec shares have lost nearly 80
per cent of their value in the past year to
€4.05, bringing down the company’s
‘I am conscious of the
impact of those measures
on our employees’
Philippe Crouzet, chief executive
market capitalisation to €550m. Val-
lourec said yesterday that it would
report a net loss this year.
The company reported that it would
close two rolling mills in France, one
threading line in Germany and a heat
treatment line in Scotland, leading to
the loss of about 1,000 jobs on top of cuts
that had already been announced.
The company will merge its Brazilian
unit with the one from Nippon Steel &
Sumitomo. This will lead to the closure
of two blast furnaces and one steel mill
over 2016-2018, in order to concentrate
all steel production at the Jeceaba facil-
ity in south-east Brazil.
The company will also seek to buy the
shares that it does not already own in
Chinese pipe maker Tianda Oil Pipe,
improving its footprint in that region as
it moves operations away from Europe.
The restructuring measures are
intended to generate about €750m in
additional earnings before interest, tax,
depreciation and amortisation by 2020.
After the capital raising Bpifrance and
Nippon Steel & Sumitomo Metal will
each hold a 15 per cent stake in Val-
lourec.
“I am conscious of the impact of those
measures on our employees,” said Mr
Crouzet.
“They are necessary if we want to
position Vallourec as a strong and sus-
tainable company, able to successfully
compete over the years.”
Vallourec is to close facilities in
France, Germany and Scotland
Legal Notices
18 FINANCIAL TIMES Tuesday 2 February 2016

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 $

-0.34% -0.28% -0.33% -0.39% -0.25% -0.45% -0.06% -0.033% -0.655% -4.07%
1.98% 0.647% 1.268% 1.32%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jan 02 - Feb 01 Index All World Dec 30 - Jan 29 Index All World Jan 02 - Feb 01 Index All World Jan 02 - Feb 01 Index All World Jan 02 - Feb 01 Index All World Jan 02 - Feb 01 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,063.36 13,009.95 6,242.32 10,743.01 18,982.23 1,961.31
12,615.67 6,060.10 17,865.23 1,924.82
1,933.72
9,757.88

Day -0.34% Month -5.41% Year -3.09% Day -1.61% Month -3.05% Year -14.04% Day -0.39% Month -2.97% Year -10.26% Day -0.41% Month 0.22% Year NaN% Day 1.98% Month -6.14% Year 1.08% Day 0.67% Month -1.86% Year -1.25%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,065.85 1,437.53 9,544.20
43,630.77 21,914.40 2,882.73
42,977.50
1,344.75 8,788.50
4,600.90 19,595.50 2,602.41

Day -0.28% Month -8.14% Year -0.76% Day 2.92% Month 0.55% Year 4.22% Day -0.25% Month -6.56% Year -8.32% Day -0.31% Month -7.92% Year -15.52% Day -0.45% Month -10.58% Year -20.04% Day -1.02% Month -9.72% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,603.87 43,349.96 4,637.06 21,418.37 26,117.54
4,392.33 3,539.18
40,188.69 24,824.83
16,411.85
18,485.95 2,688.85
Day -0.33% Month -5.84% Year -4.41% Day -0.54% Month -7.31% Year -14.34% Day -0.56% Month -5.28% Year -4.60% Day -0.92% Month -13.69% Year -9.84% Day -1.78% Month -24.03% Year -16.24% Day -0.18% Month -4.95% Year -14.93%

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 11221.60 11306.02 Cyprus CSE M&P Gen 67.20 67.41 Italy FTSE Italia All-Share 20189.89 20340.61 Philippines Manila Comp 6701.36 6687.62 Taiwan Weighted Pr 8156.96 8145.21 Cross-Border DJ Global Titans ($) 222.83 223.50
Australia All Ordinaries 5094.30 5056.60 Czech Republic
PX 914.71 921.07 FTSE Italia Mid Cap 31674.43 31512.27 Poland Wig 44182.36 44290.05 Thailand Bangkok SET 1297.34 1300.98 Euro Stoxx 50 (Eur) 3018.05 3045.09
S&P/ASX 200 5043.60 5005.50 Denmark OMXC Copenahgen 20 973.01 972.66 FTSE MIB 18485.95 18657.29 Portugal PSI 20 5082.29 5065.67 Turkey BIST 100 73481.09 72427.41 Euronext 100 ID 870.41 874.30
S&P/ASX 200 Res 2198.80 2191.90 Egypt EGX 30 5992.72 5986.78 Japan 2nd Section 4569.92 4482.16 PSI General 2440.99 2433.94 UAE Abu Dhabi General Index 4106.37 4054.37 FTSE 4Good Global ($) 5086.52 5092.50
Austria ATX 2140.96 2162.42 Estonia OMX Tallinn 883.96 881.46 Nikkei 225 17865.23 17518.30 Romania BET Index 6329.23 6268.84 UK FT 30 2825.80 2755.40 FTSE All World 247.42 247.58
Belgium BEL 20 3488.53 3486.22 Finland OMX Helsinki General 8135.32 8341.27 S&P Topix 150 1202.96 1177.61 Russia Micex Index 1773.21 1784.92 FTSE 100 6060.10 6083.79 FTSE E300 1344.75 1348.08
BEL Mid 5638.07 5619.49 France CAC 40 4392.33 4417.02 Topix 1462.67 1432.07 RTX 730.39 745.30 FTSE 4Good UK 5482.78 5496.49 FTSE Eurotop 100 2655.09 2665.01
Brazil Bovespa 40188.69 40405.99 SBF 120 3477.78 3492.82 Jordan Amman SE 2136.54 2147.00 Saudi-Arabia TADAWUL All Share Index 5985.72 5996.57 FTSE All Share 3325.54 3335.90 FTSE Global 100 ($) 1230.03 1235.61
Canada S&P/TSX 60 741.61 754.85 Germany M-DAX 19473.44 19478.04 Kenya NSE 20 3767.24 3773.17 Singapore FTSE Straits Times 2602.41 2629.11 FTSE techMARK 100 3813.57 3819.17 FTSE Gold Min ($) 953.14 943.88
S&P/TSX Comp 12615.67 12822.13 TecDAX 1698.35 1688.63 Kuwait KSX Market Index 510.72 511.45 Slovakia SAX 305.70 309.16 USA DJ Composite 5719.55 5717.76 FTSE Latibex Top (Eur) 1993.20 1943.20
S&P/TSX Met & Min 270.50 277.60 XETRA Dax 9757.88 9798.11 Latvia OMX Riga 617.89 616.05 Slovenia SBI TOP 688.77 683.78 DJ Industrial 16411.85 16466.30 FTSE Multinationals ($) 1394.55 1369.85
Chile IGPA Gen 18144.20 18243.46 Greece Athens Gen 557.16 552.83 Lithuania OMX Vilnius 486.04 485.57 South Africa FTSE/JSE All Share 49055.54 49141.94 DJ Transport 6915.72 6906.76 FTSE World ($) 439.40 439.63
China FTSE A200 7471.74 7598.93 FTSE/ASE 20 154.99 153.40 Luxembourg LuxX 1286.58 1298.24 FTSE/JSE Res 20 24432.28 24249.34 DJ Utilities 617.55 611.35 FTSEurofirst 100 (Eur) 3775.84 3789.20
FTSE B35 9785.43 9873.50 Hong Kong Hang Seng 19595.50 19683.11 Malaysia FTSE Bursa KLCI 1667.80 1634.53 FTSE/JSE Top 40 43881.35 44065.55 Nasdaq 100 4270.74 4279.17 FTSEurofirst 80 (Eur) 4090.35 4119.81
Shanghai A 2813.68 2864.76 HS China Enterprise 8144.85 8241.36 Mexico IPC 43630.77 42393.02 South Korea Kospi 1924.82 1912.06 Nasdaq Cmp 4600.90 4613.95 MSCI ACWI Fr ($) 375.02 367.64
Shanghai B 340.57 344.86 HSCC Red Chip 3462.68 3472.35 Morocco MASI 8898.99 8914.20 Kospi 200 233.67 232.10 NYSE Comp 9584.75 9632.70 MSCI All World ($) 1562.18 1532.68
Shanghai Comp 2688.85 2737.60 Hungary Bux 24126.70 23997.31 Netherlands AEX 429.68 431.28 Spain IBEX 35 8788.50 8815.80 S&P 500 1933.72 1940.24 MSCI Europe (Eur) 1342.00 1311.86
Shenzhen A 1747.70 1766.00 India BSE Sensex 24824.83 24870.69 AEX All Share 658.78 659.88 Sri Lanka CSE All Share 6363.18 6340.05 Wilshire 5000 19849.69 19926.10 MSCI Pacific ($) 2119.75 2098.02
Shenzhen B 1132.78 1146.77 S&P CNX 500 6341.60 6339.45 New Zealand NZX 50 6174.49 6170.22 Sweden OMX Stockholm 30 1344.85 1356.32 Venezuela IBC 14100.32 14032.15 S&P Euro (Eur) 1362.65 1369.28
Colombia COLCAP 1175.09 1165.38 Indonesia Jakarta Comp 4624.64 4615.16 Nigeria SE All Share 23916.15 23598.85 OMX Stockholm AS 466.96 469.40 Vietnam VNI 540.56 545.25 S&P Europe 350 (Eur) 1377.37 1380.52
Croatia CROBEX 1603.90 1602.60 Ireland ISEQ Overall 6448.24 6343.24 Norway Oslo All Share 596.62 603.36 Switzerland SMI Index 8310.99 8319.81 S&P Global 1200 ($) 1727.06 1727.61
Israel Tel Aviv 100 12.70 12.49 Pakistan KSE 100 31878.15 31878.15 Stoxx 50 (Eur) 2890.05 2902.41
(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 Feb 01 %Chg %Chg Feb 01 %Chg %Chg Feb 01 %Chg %Chg Feb 01 %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
Facebook Class A 27.5 114.75 2.54 Bg 209.1 1047.50 -5.16 Santander 968.8 3.81 -0.13 Toyota Motor 1086.2 7339.00 139.00 Anglo American 274.05 20.6 -8.8 Tullow Oil 171.20 20.9 2.4 Premier Oil 36.00 97.7 -22.5 Oil Equipment & Services 13062.13 8.6 0.2
Apple 16.6 96.43 -0.91 Royal Dutch Shell 202.1 1500.00 -12.26 Novartis N 455.7 70.81 0.00 Sumitomo Mitsui Fin,. 987.5 3677.00 -303.00 Fresnillo 739.00 11.6 3.7 Nmc Health 919.00 20.4 14.1 Petra Diamonds 87.25 23.8 -1.0 Food & Drug Retailers 2652.32 8.2 6.0
Amazon.com 14.8 577.61 -9.39 Bp 201.3 366.95 -11.85 Nestle N 343.8 67.83 0.00 Mitsubishi Ufj Fin,. 978.6 576.10 -33.30 Sage 625.50 9.8 3.3 Acacia Mining 214.10 18.7 16.8 Ferrexpo 20.25 22.7 -5.8 Mining 6749.49 7.5 -8.2
Broadcom 14.0 54.67 0.17 Royal Dutch Shell 166.1 1494.50 -9.58 Roche Gs 325.5 238.05 0.00 Sony 914.6 2836.00 313.00 Tesco 171.75 9.7 14.3 Talktalk Telecom 217.90 14.4 0.0 Enquest 15.25 20.5 -17.6 Oil & Gas Producers 5719.34 6.2 0.9
Precision Castparts 13.6 234.95 0.10 Hsbc Holdings 150.8 484.40 -7.90 Unicredit 306.3 3.55 0.00 Mizuho Fin,. 688.5 193.70 -12.10 Randgold Resources Ld 5045.00 9.0 20.9 Vedanta Resources 233.80 12.2 -15.0 Soco Int 162.25 14.7 10.2 Tobacco 47717.40 5.8 3.7
Hospira 11.8 89.95 -0.01 British American Tobacco 146.5 3864.00 -1.50 Iberdrola 270.3 6.52 0.07 Mitsui Fudosan Co., 527.1 3012.00 209.00 Glencore 87.99 8.8 -2.8 Crest Nicholson Holdings 574.00 12.0 3.1 Lonmin 47.75 12.4 -42.8 Fixed Line Telecommunication 5523.88 5.1 3.9
Alphabet Class C Capital Stock 10.2 750.45 7.50 Glaxosmithkline 144.7 1434.50 -9.19 Total 268.0 40.00 -0.92 Ntt Docomo,. 464.2 2885.00 358.00 Aberdeen Asset Management 245.00 8.5 -15.4 Drax 254.00 12.0 3.9 Blackrock Commodities ome Investment Trust 52.50 11.7 -3.8 Food Producers 8664.71 5.1 -2.2
Netflix 10.0 95.83 3.99 Diageo 139.0 1910.50 16.28 Royal Dutch Shella 262.5 19.87 -0.12 Softbank . 453.6 5455.00 190.00 Royal Dutch Shell 1494.50 7.9 -1.2 Polymetal Int 590.00 10.2 0.9 Hansard Global 110.75 10.9 -0.9 Software & Computer Services 1629.93 4.6 -1.4
Microsoft 8.2 54.77 -0.32 Bt 137.8 494.20 13.51 Daimler Ag Na O.n. 259.4 64.16 0.00 Thb Dai-ichi Life Insurance , 433.9 1455.00 -178.50 Old Mutual 167.00 7.7 -6.9 Petrofac 792.00 10.1 -0.5 Stock Spirits 132.50 10.6 -5.0 Electricity 8310.32 3.9 -5.7
Alphabet Class A Common Stock 7.9 768.32 6.97 Vodafone 134.7 225.45 -0.33 Eni 258.6 13.28 0.00 Nippon Telegraph And Telephone 419.9 5378.00 350.00 Royal Dutch Shell 1500.00 7.6 -2.2 Jimmy Choo 135.20 9.9 -4.3 Hunting 302.00 10.6 -1.5 Personal Goods 26815.82 3.5 3.7
Compass 1199.00 6.9 2.1 Betfair 4420.00 9.5 13.3 Spirent Communications 74.00 9.6 3.5 Gas Water & Multiutilities 6107.53 3.5 2.9
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
Bg 1047.50 6.9 6.5 Kier 1332.00 8.7 -4.2 Brammer 169.25 9.5 -7.1 Media 7342.81 3.4 -1.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Sysco 42.79 2.98 7.49 Home Retail 152.90 16.20 11.85 Ryanair Holdings 14.50 0.75 5.45 Nisshin Steel Holdings Co., 1296.00 169.00 15.00 Ashtead 893.50 -7.9 -20.2 Melrose Industries 296.60 -84.5 -85.2 Lakehouse 35.00 -60.2 -62.8 Industrial Metals 579.10 -5.4 -19.3
Seagate Technology 30.64 1.59 5.47 Allied Minds 302.10 12.08 4.28 Altice 13.72 0.49 3.66 Ntt Docomo,. 2885.00 358.00 14.17 Shire 3922.00 -7.7 -16.6 Just Eat 359.30 -13.8 -26.0 Avon Rubber 775.00 -22.6 -21.7 Forestry & Paper 12440.92 -3.4 -13.7
Chipotle Mexican Grill 475.50 22.53 4.97 Ao World 159.60 6.28 4.13 Altice B 13.99 0.37 2.68 Meidensha 522.00 60.00 12.99 Standard Chartered 460.00 -3.8 -18.4 Firstgroup 92.50 -8.7 -13.8 Carpetright 382.00 -15.1 -21.0 Automobiles & Parts 6502.16 -2.6 -10.0
Netflix 95.83 3.99 4.34 Udg Healthcare 545.00 21.00 4.01 Ucb 80.45 1.83 2.33 Shiseido , 2524.50 284.50 12.70 Easyjet 1601.00 -3.5 -9.5 Nostrum Oil & Gas 273.00 -7.8 -32.6 Rps 183.00 -13.5 -22.8 Chemicals 9934.87 0.0 -7.8
Centerpoint Energy 18.58 0.71 3.95 Card Factory 360.70 11.80 3.38 Suez Environnement 17.47 0.39 2.28 Sony 2836.00 313.00 12.41 Mondi 1155.00 -3.4 -13.7 Circassia Pharmaceuticals 283.30 -6.9 -11.3 Flybe 74.50 -12.4 -18.6 Pharmaceuticals & Biotech. 12568.78 0.3 -2.6
Tui Ag 1190.00 -3.0 -2.5 Evraz 58.80 -5.7 -19.6 Rm 147.25 -11.3 -10.7 Technology Hardware & Equip. 1243.10 0.4 -2.5
Downs Downs Downs Downs
Gkn 278.10 -2.9 -10.2 Entertainment One 150.00 -5.7 -10.2 Imagination 133.00 -9.4 -0.4 General Retailers 2865.77 0.4 -4.7
Kinder Morgan 15.13 -1.33 -8.05 Evraz 58.80 -3.46 -5.55 Grifols Sa 14.99 -14.40 -48.99 Tokuyama 177.00 -59.00 -25.00
Carnival 3515.00 -2.6 -9.3 Electrocomponents 204.00 -5.1 -14.4 Biotech Growth Trust (the) 602.00 -9.1 -20.5 General Industrials 4242.94 0.5 -3.4
Roper 162.41 -13.26 -7.55 Vedanta Resources 233.80 -10.30 -4.22 Alcatel-lucent 3.23 -0.42 -11.51 Sony Fin Holdings . 1730.00 -237.00 -12.05
Capita 1159.00 -1.3 -4.8 Paypoint 785.50 -4.9 -14.8 Volution 165.00 -8.3 -13.4 Support Services 6368.84 0.8 -6.4
Devon Energy 26.00 -1.90 -6.81 Rathbone Brothers 2180.00 -80.00 -3.54 Vivendi 18.96 -1.07 -5.34 Shinsei Bank, 164.00 -22.00 -11.83
Int Consolidated Airlines S.a. 555.00 -1.2 -9.1 Supergroup 1475.00 -4.2 -10.4 Exova 129.75 -7.3 -10.4 Equity Investment Instruments 7078.72 1.0 -5.1
Chesapeake Energy 3.17 -0.23 -6.64 Bp 366.95 -11.85 -3.15 B.popular 2.39 -0.09 -3.71 Thb Dai-ichi Life Insurance , 1455.00 -178.50 -10.93
Babcock Int 908.50 -1.2 -10.5 Savills 752.00 -4.0 -14.9 Int Biotechnology Trust 432.50 -6.2 -21.5 Construction & Materials 4871.06 1.0 -5.9
Oneok 23.28 -1.63 -6.54 Ip 177.80 -5.59 -3.00 Santander 3.81 -0.13 -3.28 Fukuoka Fin,. 459.00 -45.00 -8.93
Royal Bank Of Scotland 249.10 -0.9 -17.5 Northgate 327.20 -3.6 -16.8 Low & Bonar 60.00 -5.9 -9.6 Real Estate & Investment Servic 2799.82 1.1 -8.6
Based on the constituents of the S&P500 and the Nasdaq 100 index 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
Feb 01 Currency Mid Change Mid Change Mid Change Feb 01 Currency Mid Change Mid Change Mid Change Feb 01 Currency Mid Change Mid Change Mid Change Feb 01 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.1285 0.2205 15.3908 0.3417 20.3053 0.5770 Indonesia Indonesian Rupiah 13637.5000 -137.5000 14855.9934 -49.2909 19599.7726 59.8976 Poland Polish Zloty 4.0315 -0.0511 4.3917 -0.0259 5.7940 0.0029 ..Three Month 0.6958 -0.0092 0.7578 -0.0048 - -
Australia Australian Dollar 1.4113 -0.0024 1.5374 0.0077 2.0284 0.0230 Israel Israeli Shekel 3.9550 -0.0006 4.3084 0.0282 5.6841 0.0730 Romania Romanian Leu 4.1530 -0.0419 4.5240 -0.0150 5.9686 0.0182 ..One Year 0.6961 -0.0092 0.7571 -0.0049 - -
Bahrain Bahrainin Dinar 0.3768 -0.0004 0.4104 0.0023 0.5415 0.0065 Japan Japanese Yen 121.0250 -0.0400 131.8384 0.8398 173.9365 2.2058 Russia Russian Ruble 76.6194 1.4181 83.4652 2.0936 110.1170 3.4440 United States United States Dollar - - 1.0893 0.0073 1.4372 0.0187
Bolivia Bolivian Boliviano 6.9100 0.0100 7.5274 0.0612 9.9310 0.1434 ..One Month 121.0249 -0.0401 131.8384 0.8398 173.9364 2.2056 Saudi Arabia Saudi Riyal 3.7501 -0.0014 4.0852 0.0258 5.3896 0.0681 ..One Month - - 1.0893 -0.3292 1.4372 0.0187
Brazil Brazilian Real 3.9778 -0.0417 4.3332 -0.0162 5.7169 0.0151 ..Three Month 121.0247 -0.0406 131.8384 0.8398 173.9361 2.2050 Singapore Singapore Dollar 1.4238 0.0005 1.5510 0.0109 2.0463 0.0273 ..Three Month - - 1.0891 -0.3292 1.4372 0.0187
Canada Canadian Dollar 1.4007 -0.0066 1.5259 0.0031 2.0131 0.0169 ..One Year 121.0233 -0.0432 131.8383 0.8396 173.9364 2.2038 South Africa South African Rand 15.9980 0.0980 17.4274 0.2228 22.9922 0.4381 ..One Year - - 1.0879 -0.3292 1.4375 0.0187
Chile Chilean Peso 711.9650 1.6650 775.5779 6.9964 1023.2323 15.6717 Kenya Kenyan Shilling 102.4000 - 111.5493 0.7471 147.1687 1.9143 South Korea South Korean Won 1200.5000 1.6000 1307.7627 10.4905 1725.3522 24.7124 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0200 6.8683 0.0676 9.0615 0.1462
China Chinese Yuan 6.5790 0.0002 7.1668 0.0482 9.4553 0.1233 Kuwait Kuwaiti Dinar 0.3034 -0.0007 0.3305 0.0015 0.4360 0.0047 Sweden Swedish Krona 8.5316 -0.0433 9.2939 0.0154 12.2616 0.0981 Vietnam Vietnamese Dong 22280.0000 50.0000 24270.7254 216.6518 32020.6982 487.3911
Colombia Colombian Peso 3331.4800 37.3300 3629.1423 64.7000 4787.9856 115.2325 Malaysia Malaysian Ringgit 4.1550 - 4.5262 0.0303 5.9715 0.0777 Switzerland Swiss Franc 1.0177 -0.0070 1.1086 -0.0001 1.4626 0.0091 European Union Euro 0.9180 -0.0062 - - 1.3193 0.0084
Costa Rica Costa Rican Colon 536.8700 0.5800 584.8385 4.5448 771.5867 10.8593 Mexico Mexican Peson 18.2673 0.0995 19.8994 0.2409 26.2536 0.4826 Taiwan New Taiwan Dollar 33.4110 0.0735 36.3962 0.3233 48.0181 0.7289 ..One Month 0.9179 -0.0062 - - 1.3193 0.0084
Czech Republic Czech Koruna 24.8043 -0.1705 27.0205 -0.0036 35.6485 0.2218 New Zealand New Zealand Dollar 1.5357 -0.0099 1.6730 0.0005 2.2072 0.0147 Thailand Thai Baht 35.5975 -0.1350 38.7781 0.1137 51.1605 0.4740 ..Three Month 0.9177 -0.0062 - - 1.3191 0.0084
Denmark Danish Krone 6.8509 -0.0460 7.4630 0.0002 9.8460 0.0628 Nigeria Nigerian Naira 199.2500 0.2000 217.0527 1.6702 286.3610 4.0086 Tunisia Tunisian Dinar 2.0428 -0.0081 2.2253 0.0061 2.9359 0.0266 ..One Year 0.9166 -0.0062 - - 1.3185 0.0084
Egypt Egyptian Pound 7.8345 0.0795 8.5345 0.1432 11.2597 0.2592 Norway Norwegian Krone 8.6957 -0.0320 9.4726 0.0289 12.4974 0.1172 Turkey Turkish Lira 2.9542 -0.0055 3.2182 0.0155 4.2458 0.0474
Hong Kong Hong Kong Dollar 7.7766 -0.0062 8.4715 0.0500 11.1766 0.1366 Pakistan Pakistani Rupee 104.9150 0.0200 114.2890 0.7871 150.7833 1.9897 United Arab Emirates UAE Dirham 3.6727 -0.0003 4.0009 0.0265 5.2785 0.0682
Hungary Hungarian Forint 284.9131 -2.4074 310.3696 -0.5261 409.4755 1.9115 Peru Peruvian Nuevo Sol 3.4835 0.0128 3.7947 0.0393 5.0065 0.0833 United Kingdom Pound Sterling 0.6958 -0.0092 0.7580 -0.0048 - -
India Indian Rupee 67.8450 -0.0325 73.9068 0.4599 97.5065 1.2222 Philippines Philippine Peso 47.6800 0.0300 51.9401 0.3804 68.5254 0.9339 ..One Month 0.6958 -0.0092 0.7579 -0.0048 - -
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 Feb 01 Jan 29 Jan 28 Jan 27 Jan 26 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 2825.80 2755.40 2783.90 2753.90 2736.40 0.00 2875.90 2642.30 Food & Drug Retailer 6.61 Software & Comp Serv -1.87 Real Est Invest & Tr -5.50 FTSE 100 Price Change FTSE 100 Price Change
Feb 01 chge% Index Jan 29 Jan 28 ago yield% Cover ratio adj Return FT 30 Div Yield 1.76 1.81 1.79 1.81 1.81 0.00 3.93 2.74 Personal Goods 4.20 Food Producers -1.90 Electronic & Elec Eq -5.54 3I Group PLC 439.90 -2.10 Kingfisher PLC 324.50 -1.60
FTSE 100 (100) 6060.10 -0.39 6234.50 6083.79 5931.78 6782.55 4.10 1.47 16.58 3.26 4750.87 P/E Ratio net 25.36 24.72 24.96 24.67 24.61 0.00 19.44 14.26 Tobacco 4.07 Leisure Goods -2.47 Support Services -5.69 Aberdeen Asset Management PLC 245.00 -1.50 Land Securities Group PLC 1105 10.00
FTSE 250 (250) 16489.26 0.01 16963.78 16487.72 16196.55 16355.56 2.75 1.93 18.84 15.43 11487.24 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Oil & Gas Producers 2.60 FTSE 100 Index -2.54 FTSE SmallCap Index -5.82 Admiral Group PLC 1768 -6.00 Legal & General Group PLC 240.10 -3.40
FTSE 250 ex Inv Co (209) 17925.71 0.03 18441.57 17920.11 17585.38 17655.66 2.77 2.03 17.76 13.89 12731.71 FT 30 hourly changes Oil & Gas 2.49 Pharmace & Biotech -2.63 Travel & Leisure -5.94 Anglo American PLC 274.05 -3.40 Lloyds Banking Group PLC 64.19 -1.27
FTSE 350 (350) 3377.09 -0.32 3474.27 3387.97 3307.59 3704.56 3.87 1.53 16.93 2.05 5336.60 8 9 10 11 12 13 14 15 16 High Low Gas Water & Multi 2.31 Health Care -2.70 Construct & Material -6.06 Antofagasta PLC 374.00 -6.20 London Stock Exchange Group PLC 2461 -13.00
FTSE 350 ex Investment Trusts (309) 3355.02 -0.33 3451.57 3365.99 3285.12 3684.56 3.90 1.53 16.75 1.92 2729.74 2755.4 2782.8 2791.3 2785.3 2789.3 2792.5 2794.3 2806.9 2803.4 2825.8 2755.4 Fixed Line Telecomms 2.11 Nonlife Insurance -2.92 Industrial Eng -6.66 Arm Holdings PLC 1011 18.00 Marks And Spencer Group PLC 424.80 0.70
FTSE 350 Higher Yield (106) 3095.91 -0.65 3185.00 3116.12 3038.24 3627.80 5.64 1.28 13.80 2.01 5017.90 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Beverages 1.88 Technology -2.93 Chemicals -7.42 Ashtead Group PLC 893.50 -5.50 Merlin Entertainments PLC 413.70 -
FTSE 350 Lower Yield (244) 3336.68 0.02 3432.70 3336.12 3261.34 3419.35 2.05 2.21 22.05 1.87 3533.73 Consumer Goods 1.66 FTSE All{HY-}Share Index -3.15 Mining -7.62 Associated British Foods PLC 3150 - Mondi PLC 1155 19.00
FTSE SmallCap (287) 4364.65 0.00 4490.25 4364.76 4319.36 4430.97 3.01 1.39 23.88 8.40 5995.11 Telecommunications 1.42 Consumer Services -3.18 Basic Materials -8.02
FTSE SmallCap ex Inv Co (152) 3948.36 -0.10 4061.99 3952.24 3929.28 3859.71 2.98 1.86 18.03 6.02 5692.70 FX: EFFECTIVE INDICES Mobile Telecomms 0.95 Industrial Transport -3.23 Life Insurance -8.43
Astrazeneca PLC 4504 16.50 National Grid PLC 989.70 3.90
Aviva PLC 475.50 -5.30 Next PLC 6880 -45.00
FTSE All-Share (637) 3325.54 -0.31 3421.24 3335.90 3258.27 3638.29 3.84 1.52 17.10 2.17 5316.34 Utilities 0.88 Health Care Eq & Srv -3.47 Financials -8.51
Jan 29 Jan 28 Mnth Ago Feb 01 Jan 29 Mnth Ago Babcock International Group PLC 908.50 -6.50 Old Mutual PLC 167.00 -2.70
FTSE All-Share ex Inv Co (461) 3290.49 -0.32 3385.18 3301.10 3222.94 3605.73 3.88 1.54 16.77 1.95 2721.61 Oil Equipment & Serv -0.56 Tech Hardware & Eq -4.03 Real Est Invest & Se -8.81 Bae Systems PLC 509.00 -7.00 Pearson PLC 789.00 -
FTSE All-Share ex Multinationals (572) 1132.97 0.01 966.05 1132.82 1105.87 1164.05 2.96 1.57 21.55 1.02 1933.11 Australia 90.69 89.97 91.91 Sweden 79.67 79.47 80.18 NON FINANCIALS Index -1.21 Electricity -4.59 Financial Services -9.17 Barclays PLC 182.80 -3.20 Persimmon PLC 2067 31.00
FTSE Fledgling (100) 7372.55 0.04 7584.71 7369.30 7333.05 7001.47 2.60 1.28 30.03 11.43 13305.68 Canada 83.78 83.49 84.80 Switzerland 156.06 156.06 159.87 Media -1.63 Industrials -4.85 Automobiles & Parts -9.60 Barratt Developments PLC 611.00 11.50 Provident Financial PLC 2966 28.00
FTSE Fledgling ex Inv Co (50) 10283.07 -0.04 10578.99 10286.96 10261.26 8726.94 2.70 1.68 22.08 5.35 18036.01 Denmark 106.29 106.36 105.78 UK 87.58 88.27 90.93 Household Goods & Ho -1.80 General Retailers -4.96 Banks -10.83 Berkeley Group Holdings (The) PLC 3526 -9.00 Prudential PLC 1326.5 -41.00
FTSE All-Small (387) 3027.87 0.00 3115.00 3027.88 2997.23 3064.25 2.99 1.39 24.13 5.77 5339.96 Japan 128.27 130.24 127.81 USA 107.37 106.21 105.76 Aerospace & Defense -1.86 Equity Invest Instr -5.33 Forestry & Paper -14.84 Bg Group PLC 1047.5 -7.00 Randgold Resources LD 5045 78.00
FTSE All-Small ex Inv Co Index (202) 2949.79 -0.10 3034.68 2952.61 2935.86 2865.43 2.97 1.85 18.16 4.38 5388.44 New Zealand 111.32 110.24 115.71 Euro 87.31 87.43 86.26 FTSE 250 Index -5.41 Industrial Metals & -15.18 Bhp Billiton PLC 678.10 1.70 Reckitt Benckiser Group PLC 6271 37.00
FTSE AIM All-Share Index (848) 696.16 0.35 716.19 693.70 687.78 691.05 1.61 0.62 100.64 0.55 749.83 Norway 85.13 85.07 83.89
BP PLC 366.95 -9.15 RELX PLC 1228 -2.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3864 -33.00 Rio Tinto PLC 1696 -18.00
Oil & Gas (18) 6043.79 -1.54 6217.72 6138.56 6037.06 7596.78 6.23 0.20 80.37 0.00 5062.06 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 748.50 8.50 Rolls-Royce Holdings PLC 555.00 -
Oil & Gas Producers (11) 5749.76 -1.59 5915.23 5842.75 5746.87 7232.85 6.25 0.16 98.83 0.00 4979.61 Bt Group PLC 494.20 9.35 Royal Bank Of Scotland Group PLC 249.10 -3.60
Oil Equipment Services & Distribution (7)13550.35 -0.16 13940.30 13571.45 13296.88 16615.82 5.62 1.41 12.62 0.00 9965.72 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1868 - Royal Dutch Shell PLC 1494.5 -23.50
Basic Materials (28) 2513.16 -0.36 2585.49 2522.21 2505.99 4633.91 8.15 1.88 6.52 1.30 2465.47 Burberry Group PLC 1189 -6.00 Royal Dutch Shell PLC 1500 -21.00
Chemicals (7) 10631.94 -0.26 10937.90 10659.83 10423.99 12042.09 2.70 2.27 16.34 35.08 9169.25 Feb 01 No of US $ Day Mth YTD Total
YTD Gr Div Feb 01 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1159 -16.00 Royal Mail PLC 460.50 1.30
Forestry & Paper (1) 13575.33 1.67 13965.99 13352.01 13210.97 13974.95 2.66 3.37 11.16 0.00 14101.68 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3515 35.00 Rsa Insurance Group PLC 416.40 -
Industrial Metals & Mining (2) 595.32 -4.06 612.45 620.48 586.96 1683.84 1.93 -18.64 -2.77 0.00 519.52 FTSE Global All Cap 7741 422.59 2.0 -7.5 -6.3 578.71
-6.2 2.7 Oil & Gas 166 294.89 2.3 2.3 -3.3 450.86 -3.3 4.2 Centrica PLC 205.10 0.30 Sabmiller PLC 4194.5 12.00
Mining (18) 6479.22 -0.50 6665.68 6511.60 6493.10 13271.78 9.64 1.85 5.61 0.00 3326.54 FTSE Global All Cap 7102 435.07 2.1 -7.4 -6.2 585.34
-6.1 2.6 Oil & Gas Producers 116 275.86 2.0 2.0 -3.3 429.16 -3.3 4.3 Coca-Cola Hbc AG 1441 12.00 Sage Group PLC 625.50 4.50
FTSE Global Large Cap 1415 374.84 2.0 -7.2 -6.0 525.13
-5.9 2.8 Oil Equipment & Services 41 270.47 3.4 3.4 -2.6 377.59 -2.4 4.0 Compass Group PLC 1199 -4.00 Sainsbury (J) PLC 244.60 -0.50
Industrials (119) 4124.79 -0.70 4243.49 4153.80 4067.17 4400.11 2.70 1.21 30.70 1.31 4100.01
Construction & Materials (14) 5045.71 -0.06 5190.91 5048.70 4900.00 4679.67 2.33 -0.81 -53.15 0.00 5155.95 FTSE Global Mid Cap 1640 560.81 2.1 -7.8 -6.8 732.94
-6.8 2.2 Basic Materials 261 317.81 1.3 1.3 -9.6 465.98 -9.5 3.7 Crh PLC 1849 -5.00 Schroders PLC 2700 -24.00
Aerospace & Defense (9) 4189.64 -0.91 4310.21 4228.22 4148.12 5106.00 2.73 1.04 35.15 1.32 4332.55 FTSE Global Small Cap 4686 579.44 2.2 -8.6 -7.6 735.52
-7.6 2.2 Chemicals 122 534.30 1.3 1.3 -9.7 785.71 -9.6 2.9 Dcc PLC 5365 -40.00 Severn Trent PLC 2211 22.00
General Industrials (6) 3445.02 -0.47 3544.16 3461.31 3379.41 3182.72 3.31 1.67 18.12 0.00 3750.49 FTSE All-World 3055 247.58 2.0 -7.3 -6.1 357.70
-6.0 2.7 Forestry & Paper 16 176.78 1.9 1.9 -9.8 283.95 -9.8 3.8 Diageo PLC 1910.5 26.00 Shire PLC 3922 12.00
Electronic & Electrical Equipment (10) 5035.78 -0.80 5180.70 5076.60 4989.47 4982.57 2.45 1.90 21.44 0.00 4459.73 FTSE World 2539 439.63 2.0 -7.2 -6.0 852.87
-5.9 2.7 Industrial Metals & Mining 67 228.04 2.2 2.2 -11.4 335.81 -11.4 3.7 Direct Line Insurance Group PLC 379.50 4.90 Sky PLC 1097 15.00
Industrial Engineering (14) 7098.71 -0.53 7302.99 7136.46 7055.72 9247.31 4.23 1.57 15.03 10.28 8324.08 FTSE Global All Cap ex UNITED KINGDOM In 7417 434.47 2.1 -7.4 -6.3 586.74
-6.2 2.6 Mining 56 299.04 0.9 0.9 -7.6 438.23 -7.6 7.1 Dixons Carphone PLC 476.50 2.80 Smith & Nephew PLC 1153 -9.00
Industrial Transportation (8) 3806.01 -0.07 3915.53 3808.60 3752.43 4097.75 3.99 0.94 26.73 0.00 3201.88 FTSE Global All Cap ex USA 5743 388.18 1.4 -7.7 -7.0 563.76
-6.9 3.2 Industrials 534 279.19 2.0 2.0 -6.7 388.48 -6.6 2.5 Easyjet PLC 1601 53.00 Smiths Group PLC 939.00 -4.50
Support Services (58) 6237.11 -0.85 6416.60 6290.57 6158.21 6454.92 2.44 1.51 27.08 2.30 6261.22 FTSE Global All Cap ex JAPAN 6479 430.90 2.1 -7.4 -6.1 595.34
-6.0 2.7 Construction & Materials 109 396.74 2.1 2.1 -5.3 577.34 -5.3 2.3 Experian PLC 1176 -14.00 Sports Direct International PLC 416.40 0.80
FTSE Developed 2103 400.75 1.9 -7.3 -6.1 552.94
-6.0 2.7 Aerospace & Defense 28 473.44 2.3 2.3 -6.5 652.64 -6.5 2.2 Fresnillo PLC 739.00 17.00 Sse PLC 1432 -18.00
Consumer Goods (40) 18646.26 0.22 19182.85 18605.33 18127.45 17236.59 2.95 1.77 19.15 0.57 13154.20
FTSE Developed All Cap 5731 419.34 1.9 -7.5 -6.3 572.36
-6.2 2.6 General Industrials 56 205.97 2.7 2.7 -5.1 308.56 -4.7 2.8 Gkn PLC 278.10 -0.70 St. James's Place PLC 946.00 -7.00
Automobiles & Parts (1) 6535.48 -0.25 6723.55 6551.93 6540.18 8730.42 3.06 1.53 21.37 0.00 6010.29
FTSE Developed Large Cap 915 371.49 1.9 -7.2 -5.9 519.57
-5.8 2.8 Electronic & Electrical Equipment 69 282.57 1.6 1.6 -10.7 362.23 -10.7 2.1 Glaxosmithkline PLC 1434.5 -4.50 Standard Chartered PLC 460.00 -11.00
Beverages (6) 15857.01 0.88 16313.33 15718.42 15492.42 15015.87 2.41 1.72 24.07 0.00 10800.58
FTSE Developed Europe Large Cap 219 308.53 1.1 -8.0 -6.5 486.57
-6.4 3.7 Industrial Engineering 104 490.44 0.8 0.8 -8.5 671.29 -8.4 2.9 Glencore PLC 87.99 -1.49 Standard Life PLC 363.20 -0.30
Food Producers (10) 8736.93 -0.14 8988.35 8748.88 8477.96 8335.42 1.88 1.39 38.24 3.94 7314.83
FTSE Developed Europe Mid Cap 304 473.84 1.0 -8.6 -7.6 679.00
-7.5 2.7 Industrial Transportation 96 460.95 2.0 2.0 -6.9 639.13 -6.9 2.6 Hammerson PLC 588.00 4.50 Taylor Wimpey PLC 195.20 2.80
Household Goods & Home Construction (13)13647.66 0.83 14040.40 13535.72 13243.61 11078.05 2.13 2.54 18.43 0.00 9284.11
FTSE Dev Europe Small Cap 720 669.50 0.7 -9.2 -8.5 934.40
-8.4 2.4 Support Services 72 261.54 2.3 2.3 -5.2 349.77 -5.1 2.0 Hargreaves Lansdown PLC 1341 -22.00 Tesco PLC 171.75 -1.65
Leisure Goods (2) 5397.87 1.03 5553.21 5342.86 5265.29 4857.60 4.43 1.32 17.05 0.00 4571.66
FTSE North America Large Cap 317 414.79 2.4 -6.6 -5.0 546.79
-4.8 2.4 Consumer Goods 423 401.46 1.8 1.8 -3.6 571.53 -3.5 2.5 Hikma Pharmaceuticals PLC 2029 11.00 Travis Perkins PLC 1820 -5.00
Personal Goods (6) 23347.36 -0.38 24019.24 23436.71 22575.78 23554.31 2.80 3.22 11.09 1.04 15063.66
FTSE North America Mid Cap 394 597.02 2.8 -8.1 -6.8 737.65
-6.7 1.9 Automobiles & Parts 103 338.41 1.2 1.2 -11.3 462.62 -11.3 2.8 HSBC Holdings PLC 484.40 -7.90 Tui AG 1190 4.00
Tobacco (2) 47717.49 -0.41 49090.67 47915.68 46305.41 44076.28 4.18 1.18 20.34 0.00 29080.11
FTSE North America Small Cap 1516 593.17 3.0 -9.1 -7.5 713.20
-7.5 1.9 Beverages 48 568.55 1.4 1.4 -0.6 820.30 -0.6 2.5 Imperial Tobacco Group PLC 3803 17.00 Unilever PLC 3071.5 -13.50
Health Care (19) 9235.93 0.03 9501.71 9232.88 9044.88 9740.33 3.79 3.53 7.48 0.18 6734.42
FTSE North America 711 276.08 2.5 -6.8 -5.3 372.94
-5.1 2.3 Food Producers 106 547.40 2.3 2.3 -2.0 801.92 -1.9 2.2 Inmarsat PLC 1116 16.00 United Utilities Group PLC 967.00 10.50
Health Care Equipment & Services (7) 7091.85 -0.39 7295.94 7119.28 6961.73 6788.33 1.60 2.16 28.94 1.60 6014.29
FTSE Developed ex North America 1392 210.17 1.0 -8.0 -7.3 327.41
-7.2 3.2 Household Goods & Home Construction 47 390.20 2.1 2.1 -2.8 553.78 -2.5 2.4 Intercontinental Hotels Group PLC 2345 48.00 Vodafone Group PLC 225.45 1.55
Pharmaceuticals & Biotechnology (12)12475.67 0.07 12834.68 12466.73 12214.92 13281.84 3.99 3.58 7.01 0.00 8080.15
FTSE Japan Large Cap 177 298.88 0.8 -8.5 -8.8 373.89
-8.8 2.1 Leisure Goods 28 121.16 1.6 1.6 -8.1 156.00 -8.1 1.5 International Consolidated Airlines Group S.A. 555.00 15.50 Whitbread PLC 4051 51.00
Consumer Services (96) 4778.23 0.43 4915.73 4758.00 4649.12 4793.46 2.39 1.57 26.71 7.19 4319.80 FTSE Japan Mid Cap 303 461.35 1.1 -5.8 -6.1 557.44
-6.1 1.6 Personal Goods 80 593.41 2.2 2.2 -0.7 804.70 -0.7 2.0
Food & Drug Retailers (7) 2765.16 -0.60 2844.73 2781.80 2684.24 3315.64 1.93 -1.50 -34.39 0.00 3161.98 Intertek Group PLC 2796 -34.00 Wolseley PLC 3451 -12.00
FTSE Global wi JAPAN Small Cap 782 487.79 0.8 -6.6 -7.3 608.35
-7.3 1.9 Tobacco 11 1248.34 2.1 2.1 2.6 2439.49 2.6 3.8 Intu Properties PLC 297.70 -1.30 Worldpay Group PLC 310.00 -3.00
General Retailers (32) 2805.10 0.34 2885.83 2795.54 2755.61 2897.60 2.59 2.24 17.26 1.98 3076.91
FTSE Japan 480 125.09 0.9 -7.9 2.0 Health Care
-8.3 175.82
-8.3 173 423.62 1.3 1.3 -7.6 590.36 -7.5 2.0 Itv PLC 270.50 3.70 Wpp PLC 1516 -1.00
Media (22) 7426.08 0.48 7639.79 7390.66 7170.61 7072.81 2.75 1.56 23.30 1.47 4385.15
FTSE Asia Pacific Large Cap ex Japan 530 498.15 2.0 -7.9 -7.9 745.29
-7.9 3.5 Health Care Equipment & Services 61 618.40 2.5 2.5 -4.8 709.35 -4.8 1.0 Johnson Matthey PLC 2463 -2.00
Travel & Leisure (35) 8382.48 0.72 8623.70 8322.32 8170.17 8161.23 2.08 1.92 25.00 29.43 7667.40
FTSE Asia Pacific Mid Cap ex Japan 431 691.81 2.0 -7.2 -7.4 998.31
-7.4 3.1 Pharmaceuticals & Biotechnology 112 318.51 0.9 0.9 -8.4 461.22 -8.4 2.3
Telecommunications (7) 4100.47 1.11 4218.47 4055.29 3899.34 3883.42 3.99 0.24 102.64 0.00 4296.69 FTSE Asia Pacific Small Cap ex Japan 1427 464.68 1.6 -6.7 -6.9 661.70
-6.9 2.9 Consumer Services 386 370.73 1.5 1.5 -4.9 481.93 -4.8 1.8
Fixed Line Telecommunications (5) 5610.54 1.64 5772.00 5520.21 5314.03 4753.73 2.76 1.95 18.54 0.00 4865.75
Mobile Telecommunications (2) 5186.99 0.75 5336.26 5148.35 4946.39 5271.81 4.85 -0.44 -46.94 0.00 4851.23
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
961
2010
395.62
533.12
2.0
3.1
-7.8
-7.2
-7.9 629.12
-7.8 3.5 Food & Drug Retailers
-6.7 760.58
-6.6 3.4 General Retailers
53 287.49
121 504.11
2.1
0.5
2.1
0.5
-4.1 389.12
-5.4 639.32
-4.0
-5.4
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8491.10 0.21 8735.45 8473.52 8277.56 8973.42 4.78 1.36 15.36 33.42 9080.35 FTSE Emerging Large Cap 500 502.38 3.2 -7.3 -6.7 721.11
-6.7 3.5 Media 87 277.73 2.3 2.3 -4.0 361.76 -3.9 1.9 Feb 01 Jan 29 Jan 28 Jan 27 Jan 26 Yr Ago
Electricity (2) 8291.45 -1.12 8530.06 8385.04 8243.84 9527.99 6.10 1.34 12.21 145.17 11235.47 FTSE Emerging Mid Cap 452 670.34 3.1 -6.2 -5.6 952.01
-5.5 3.1 Travel & Leisure 125 360.28 1.9 1.9 -5.6 472.94 -5.5 1.8 SEAQ Bargains 4812.00 4506.00 4506.00 4543.00 4982.00 4571.00
Gas Water & Multiutilities (5) 8071.72 0.53 8304.01 8029.15 7831.15 8350.65 4.46 1.37 16.38 5.49 8636.11 FTSE Emerging Small Cap 1058 569.21 2.1 -7.3 -7.5 782.77
-7.5 3.2 Telecommunication 92 156.84 1.9 1.9 -0.4 277.08 0.0 4.2 Order Book Turnover (m) 93.50 63.19 63.19 78.30 55.92 -
Financials (284) 4143.74 -0.95 4262.98 4183.53 4075.95 4751.55 3.96 1.87 13.50 4.02 3622.59 FTSE Emerging Europe 99 262.71 2.5 -3.8 -1.6 386.08
-1.6 4.4 Fixed Line Telecommuniations 44 136.03 1.8 1.8 2.6 263.53 3.3 4.6 Order Book Bargains 1076462.00 996250.00 996250.00 1103104.00 981073.00 15.00
Banks (9) 3304.37 -1.71 3399.46 3361.72 3266.72 4243.17 4.97 1.37 14.73 0.00 2277.80 FTSE Latin America All Cap 243 568.52 4.4 -6.8 -5.0 840.59
-4.9 3.9 Mobile Telecommunications 48 157.16 2.0 2.0 -4.6 250.79 -4.6 3.7 Order Book Shares Traded (m) 1474.00 1685.00 1685.00 1528.00 1473.00 0.00
Nonlife Insurance (10) 2759.73 0.29 2839.15 2751.78 2702.48 2331.47 2.52 2.15 18.48 0.00 4638.02 FTSE Middle East and Africa All Cap 219 583.76 3.0 -7.3 3.0 Utilities
-5.6 870.71
-5.6 161 239.16 1.6 1.6 0.8 438.87 1.0 3.9 Total Equity Turnover (£m) 2744.22 3452.16 3452.16 3413.62 3005.07 -
Life Insurance/Assurance (11) 7141.32 -1.78 7346.83 7270.61 7015.93 8211.38 4.25 1.59 14.84 0.00 6555.81 FTSE Global wi UNITED KINGDOM All Cap In 324 307.12 1.0 -8.0 -6.6 485.66
-6.6 3.9 Electricity 110 262.18 1.9 1.9 1.3 476.26 1.5 3.7 Total Mkt Bargains 1193005.00 1152199.00 1152199.00 1243403.00 1095729.00 260.00
Index- Real Estate Investment & Services (21) 2818.59 0.22 2899.70 2812.42 2772.15 2794.46 2.25 5.73 7.75 0.57 7247.48 FTSE Global wi USA All Cap 1998 472.71 2.6 -7.2 -5.7 606.51
-5.6 2.2 Gas Water & Multiutilities 51 251.78 1.2 1.2 0.0 473.33 0.1 4.3 Total Shares Traded (m) 4312.00 4815.00 4815.00 4230.00 4945.00 35.00
Real Estate Investment Trusts (25) 2815.62 0.86 2896.65 2791.50 2723.62 3014.57 3.13 5.94 5.37 6.48 3335.13 FTSE Europe All Cap 1402 355.53 1.1 -8.1 3.4 Financials
-6.8 543.66
-6.7 674 181.19 2.3 2.3 -9.7 281.76 -9.6 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7315.09 -0.38 7525.60 7342.88 7152.50 7619.86 3.17 2.19 14.39 28.97 7969.48 FTSE Eurobloc All Cap 639 333.85 1.1 -8.3 -6.9 516.60
-6.8 3.2 Banks 243 157.94 1.9 1.9 -11.5 261.76 -11.4 3.8 (c) Market closed.
Equity Investment Instruments (176) 7293.45 -0.03 7503.33 7295.77 7201.16 7650.82 2.79 1.07 33.46 15.75 3843.84 FTSE RAFI All World 3000 3005 5080.16 1.9 -7.5 3.3 Nonlife Insurance
-6.4 6406.04
-6.3 70 201.46 2.3 2.3 -6.1 280.56 -6.0 2.5
Non Financials (353) 3931.24 -0.10 4044.38 3935.05 3846.71 4231.18 3.80 1.40 18.75 2.15 5508.53 FTSE RAFI US 1000 995 8394.38 2.6 -6.6 -5.1 10627.19
-4.9 2.7 Life Insurance 51 175.73 1.6 1.6 -11.4 266.66 -11.4 3.2
Technology (19) 1412.77 0.96 1453.42 1399.32 1360.64 1274.79 1.43 1.99 35.17 0.17 1766.86 FTSE EDHEC-Risk Efficient All-World 3055 298.12 2.0 -6.5 -5.5 400.96
-5.4 2.4 Financial Services 141 199.73 3.7 3.7 -10.2 266.30 -10.1 2.2 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1817.68 0.34 1869.99 1811.54 1783.48 1399.90 1.96 1.83 27.81 0.48 2383.36 FTSE EDHEC-Risk Efficient Developed Europe 523 263.19 1.1 -6.9 2.8 Technology
-5.7 384.37
-5.7 185 165.16 3.0 3.0 -5.2 197.10 -5.2 1.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1549.97 1.49 1594.57 1527.22 1469.26 1579.46 0.98 2.25 45.20 0.00 1779.22 Software & Computer Services 85 300.69 3.0 3.0 -3.1 345.19 -3.0 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 116.66 3.0 3.0 -7.7 143.23 -7.6 2.7 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 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/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6103.40 6080.69 6041.92 6064.11 6042.29 6008.36 6011.92 6012.58 6042.05 6103.40 5994.05 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
FTSE 250 16544.61 16505.31 16424.10 16481.65 16457.34 16425.73 16406.46 16403.24 16460.77 16561.60 16373.54 (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,
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
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4368.38 4375.74 4383.38 4380.76 4384.34 4376.23 4375.80 4370.46 4373.44 4384.68 4364.65
FTSE All-Share 3346.51 3335.41 3315.88 3327.47 3317.18 3301.00 3301.91 3301.33 3316.88 3346.51 3293.70 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 100 Day's high:08:03:00 Day's Low15:04:15 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5673.58(20/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:08:03:00 Day's Low15:05:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3123.43(20/01/2016)
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 BT Group 3rd 13456 13270 2136 1803 21.9 18.1 - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Conviviality Int 251.99 182.892 4.023L 2.698 5.9L 3.2 2.1 2 Mar 11 8.4 8 12/24 144.00 AIM DNL Diurnal Group PLC 146.00 0.00 155.00 147.80 7622.8
94p Nil 23-02-16 168.00 160.25 Chemring Group PLC 166.50 -1.00 Diverse Income Trust (The) Int 27.283 3.197L 1.5 1.64 0.65 0.5 Feb 29 1.65 1.45
Murgitroyd Group Int 20.376 19.276 2.109 1.982 17.56 16.23 4.75 4.25 Mar 25 15.25 13.75
RM Pre 178.228 202.544 19.235 15.757 18.5 13.9 - 3.04 - 1.2 4

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.
Tuesday 2 February 2016 FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 36.29 0.23 36.45 30.97 4.91 40.33 223271.46 Lockheed 210.49 -0.51 227.91 181.91 2.70 19.69 64682.63
ANZ 24.59 0.41 37.25 23.08 9.89 10.17 50833.47 Nokia 5.85 -0.76 7.87 4.91 2.33 -41.35 25423.52 AstellasPh 1698.5 48.50 2047 1499.5 1.81 22.98 31181.71 AtlasCpcoB 170.30 -3.90 270.00 168.10 1.70 15.34 7789.15 AutomData 82.53 -0.56 90.67 64.29 2.25 28.95 38063.38 Lowes♦ 72.65 0.99 78.13 64.22 1.31 24.65 66477.77
BHPBilltn 15.25 -0.10 34.29 14.06 14.95 18.11 34703.64 SampoA 43.74 -0.66 49.40 40.38 4.33 14.95 26625.76 Bridgestne 4380 44.00 5182 3753.5 2.63 13.25 29426.88 Ericsson 74.45 -0.95 120.00 73.25 4.41 23.60 28840.52 Avago Tech 135.33 1.62 150.50 99.16 1.07 29.38 37417.33 Lyondell 76.94 -1.03 107.32 69.10 3.65 8.70 34580.21
CmwBkAu 78.22 -0.45 96.69 70.15 7.49 14.92 94637.08 France (€) Canon 3390 48.00 4539 3162 4.53 17.62 37359.7 H&M 278.60 -0.80 368.50 273.20 3.29 22.73 54046.18 BakerHu 42.53 -0.98 70.45 37.58 1.52 -71.88 18546.77 Marathon Ptl 41.67 -0.12 60.38 38.95 2.44 6.95 22209.03
CSL 107.99 3.99 108.68 81.48 1.28 28.63 35412.7 Airbus Grpe 57.85 0.03 68.50 46.56 2.02 16.44 49491.49 CntJpRwy 22560 455.00 24800 18255 0.51 15.81 38400 Investor 281.90 -3.80 363.40 271.40 3.08 14.19 25172.46 BankAm 13.91 -0.23 18.48 12.94 1.36 10.99 144837.59 Marsh&M♦ 53.23 -0.10 59.99 50.81 2.60 20.44 27767.33
NatAusBk 27.83 0.17 39.71 26.39 9.49 12.12 52016.47 AirLiquide 94.86 -0.36 123.95 90.77 2.51 19.88 35564.28 Denso 5186 26.00 6548 4815 2.27 16.63 37882.92 Nordea Bk 85.35 -0.55 115.50 82.80 6.56 10.29 40515.44 Baxter 37.31 0.71 43.44 32.18 4.26 11.78 20409.23 MasterCard♦ 88.45 -0.58 101.76 74.61 0.69 28.68 97315.66
Telstra 5.67 0.04 6.74 5.06 7.49 16.68 49116.45 AXA 22.52 -0.26 26.02 20.12 3.94 11.54 59512.96 EastJpRwy 11325 335.00 12815 9065 1.06 21.89 36728.47 SEB 81.35 -0.95 111.50 75.95 5.64 10.51 20691.31 BB & T 32.24 -0.42 41.90 30.99 3.00 12.59 25152.05 McDonald's 124.68 0.90 124.80 87.50 2.59 28.46 114484.89
Wesfarmers 42.63 0.46 46.95 36.65 7.67 19.94 34015.41 BNP Parib 43.33 -0.40 61.00 42.14 3.37 7.73 58831.2 Fanuc 15915 105.00 28575 15625 4.66 15.83 27081.76 SvnskaHn 105.80 -1.50 426.00 95.85 3.80 14.30 23211.9 BectonDick 146.04 0.67 157.50 128.87 1.56 45.95 30984.69 McGraw Hill 84.24 -0.78 109.13 79.64 1.45-241.86 22770.07
Westpc 30.65 -0.20 40.07 29.10 8.05 13.47 72443.36 ChristianDior 156.30 0.50 195.35 140.80 1.88 12.64 30941.78 FastRetail 37670 -760.00 61970 34540 0.87 45.92 33016.27 Swedbank 177.80 -1.30 223.90 165.10 6.16 13.06 23591.06 BerkshHat 193220.58-1139.47 227450 186900 - 14.70 156726.82 McKesson 157.83 -3.15 243.61 152.22 0.64 16.95 36077.88
Woolworths 24.43 0.15 34.71 22.42 8.06 14.47 21999.81 Cred Agr 9.11 -0.09 14.49 8.69 3.74 20.01 26178.22 Fuji Hvy Ind 4898 42.00 5223 3669 2.13 11.65 31683.35 TeliaSonera 39.59 -0.74 55.85 37.54 7.31 12.25 20093.2 Biogen 272.36 -0.70 480.18 254.00 - 18.75 60709.89 Medtronic 76.47 0.55 79.50 55.54 1.67 47.04 107528.73
Belgium (€) Danone 63.35 -0.10 67.74 51.73 2.21 44.75 45198.33 Hitachi 603.80 17.40 884.50 547.10 1.91 12.34 24114.39 Volvo 76.45 -1.10 120.50 72.20 3.79 16.92 14542.74 BkNYMeln♦ 35.56 -0.67 45.45 34.24 1.81 16.22 38859.93 Merck 50.60 -0.08 61.93 45.69 3.38 14.14 141339.32
AnBshInBv 116.15 0.30 124.20 87.73 2.50 23.98 203487.36 EDF 11.81 -0.23 24.89 10.96 9.89 6.65 24702.97 HondaMtr 3385 44.00 4499 3161 2.49 11.61 50664.62 Switzerland (SFr) BlackRock 308.70 -5.56 382.84 275.00 2.60 16.72 50624.5 Metlife 44.28 -0.37 58.23 40.77 3.11 9.04 49222.82
KBC Grp 52.21 -0.58 66.00 47.26 3.72 8.86 23778.65 Engie SA 14.69 -0.01 20.08 13.61 6.36 42.17 38957.45 JapanTob 4835 174.00 4850 3185.5 2.02 21.92 79900.84 ABB 17.54 -0.03 22.16 15.94 - 16.83 39896.43 Boeing 120.08 -0.05 158.83 115.02 2.73 15.91 80451.63 Microsoft 54.77 -0.32 56.85 39.72 2.30 39.97 437498
Esslr Intl 115.60 1.25 125.15 93.87 0.82 43.19 27258.07 KDDI 3214 206.00 8550 2519 1.79 17.55 71460.64 CredSuisse 17.54 -0.46 28.94 17.21 3.88 8.34 33736.98 BrisMySq 60.50 -1.66 70.87 51.82 2.32 60.24 100931.32 Mnstr Bvrg 137.01 1.98 160.50 114.70 - 50.06 27775
Brazil (R$)
Hermes Intl 312.80 -0.75 365.55 280.10 0.88 37.84 35972.58 Keyence 58580 2660 70100 50700 0.33 30.03 29430.09 Nestle 75.60 0.40 77.00 65.70 2.90 16.84 236862.41 Broadcom 54.67 0.17 58.51 40.33 0.92 25.37 30669.87 MondelezInt 42.50 -0.60 48.58 33.97 1.38 8.75 67539.62
Ambev♦ 18.48 -0.18 20.46 15.99 8.46 24.13 73020.58
LOreal 157.45 -0.10 181.30 140.40 1.60 32.11 96001.12 MitsbCp 1941 35.50 2837 1722 2.72 10.89 25501.67 Novartis 78.50 - 103.20 76.65 3.45 27.47 206499.25 CapOne 64.47 -1.15 92.10 58.49 2.06 9.55 34300.96 Monsanto 89.63 -0.97 126.00 81.22 2.14 24.73 39469.06
Bradesco 19.58 -0.01 32.40 17.90 4.73 7.19 12425.73
LVMH 147.75 -0.45 176.60 130.75 2.02 13.95 81791.48 MitsubEst 2430.5 63.00 2975 2048 0.59 46.18 27922.83 Richemont 66.00 -0.25 87.55 60.85 2.39 21.55 33854.47 CardinalHlth 79.90 -1.47 91.91 74.76 1.73 21.08 26285.59 MorganStly♦ 25.77 -0.12 41.04 24.67 1.84 16.70 49886.81
Cielo 33.46 -0.41 46.27 31.50 1.95 16.81 15870.12
Nmrcble-SFR 36.30 -0.26 60.01 32.19 - -45.91 17327.3 MitsubishiEle 1124 24.50 1718 1037 2.30 10.95 19941.79 Roche 264.30 0.40 283.90 241.10 3.01 25.59 182466.78 Carnival 48.16 0.03 55.77 42.51 2.04 28.64 28419.72 MylanNV 51.33 -1.36 76.69 37.59 - 30.20 25241.37
ItauHldFin♦ 22.92 0.30 32.66 21.49 5.30 5.39 17556.98
Orange 16.35 0.02 16.98 12.21 3.43 46.02 47164.46 MitsuiFud 3012 209.00 3879 2419.5 0.89 25.81 24674 Swiss Re 94.10 -0.70 99.75 76.85 4.64 37.98 34278.51 Caterpillar♦ 62.24 0.00 89.62 56.36 4.38 13.55 36238.7 Netflix 95.83 3.99 133.27 58.46 - 269.83 41022.98
Petrobras 6.68 -0.25 16.26 5.67 - -2.64 12498.26
PernodRic 108.70 0.75 117.75 88.00 1.41 35.89 31429.15 MitUFJFin 576.10 -33.30 936.80 565.00 3.00 5.46 67446.15 Swisscom 506.00 -1.50 580.50 463.20 4.30 18.78 25757.17 CBS 47.64 0.14 63.95 38.51 1.19 16.21 20661.6 NextEraE 112.55 0.84 112.90 93.74 2.56 17.02 51833.32
Vale 9.57 -0.15 27.89 8.63 24.23 -4.22 7740.07
Renault 78.64 0.71 100.25 59.59 2.26 9.09 25333.45 Mizuho Fin 193.70 -12.10 280.40 191.00 3.84 6.73 39816.49 Syngent 378.40 2.50 435.20 288.50 2.87 25.85 34560.64 Celgene 97.79 -2.53 140.72 92.98 - 51.66 77306.92 Nike 62.97 0.96 68.20 45.35 1.09 32.06 85002.99
Canada (C$) Murata Mfg 15845 2150 22220 12520 1.21 16.31 29492.27 CharlesSch 25.22 -0.31 35.72 24.37 0.90 26.78 33202.72 NorfolkS 69.43 -1.07 112.05 66.51 3.20 13.23 20729.7
Safran 58.30 -1.36 72.45 54.00 1.92 -18.93 26485.14 UBS 16.68 -0.15 22.57 15.21 4.44 10.44 63095.78
BCE 56.76 0.33 60.20 51.56 4.48 18.80 35076.82 NipponTT 5378 350.00 5419 3430 1.69 19.80 93157.69 ChevrnTx 84.60 -1.87 112.93 69.58 4.80 19.36 159220.31 Northrop 187.72 2.66 193.99 152.31 1.52 19.09 34236.94
Sanofi 76.75 0.20 101.10 70.94 3.47 22.42 109166.03 Zurich Fin 224.50 -1.30 334.60 212.80 - 11.35 33179.92
BkMontrl♦ 74.19 -1.03 80.76 64.01 4.35 11.33 34070.39 Nissan Mt 1212 32.00 1350 996.00 2.97 9.70 45272.52 Chubb 113.01 -0.06 134.49 94.35 2.22 14.55 36635.75 NXP 75.98 1.20 114.00 66.93 - 27.66 19128.08
Sant Gbn 37.45 -0.49 44.84 34.98 1.55 26.88 22884.3 Taiwan (NT$)
BkNvaS 56.43 -0.96 67.72 51.17 4.77 10.12 48496.37 Nomura 672.80 22.80 909.20 568.20 3.28 9.86 21250.31 Cigna 133.39 -0.21 170.68 105.23 0.03 17.22 34364.99 Occid Pet 66.37 -2.46 83.74 58.24 4.20 -8.85 50689.15
Schneider 49.30 0.19 75.29 45.57 3.64 18.24 31556.98 Chunghwa Telecom 103.00 0.50 103.00 93.10 4.54 20.91 23914.81
Brookfield 41.61 -0.68 48.64 38.13 1.47 11.19 29344.34 Nppn Stl 2347 221.00 3505 1987.5 2.66 10.06 18429.29 Cisco 23.33 -0.47 30.31 22.47 3.27 13.43 118657.84 Oracle 36.37 0.06 45.24 33.13 1.50 18.31 152798.37
SocGen 34.79 -0.40 48.77 33.69 3.35 9.84 30550.83 HonHaiPrc 79.50 1.30 99.70 72.70 4.38 8.61 37210.68
CanadPcR 164.10 -4.30 245.05 140.02 0.85 18.43 17919.2 NTTDCMo 2885 358.00 2888 1955 2.33 25.13 97396.84 Citigroup♦ 42.14 -0.44 60.95 39.44 0.27 10.01 125534.66 Pepsico 98.90 -0.41 103.44 76.48 2.60 30.98 144075.26
Total 40.00 -0.92 50.30 36.16 6.04 112.77 106930.58 MediaTek 210.00 -7.50 493.50 195.50 10.09 10.69 9877.97
CanImp 90.17 -1.07 102.90 82.19 4.75 10.20 25587.85 Panasonic 1139.5 25.50 1853.5 1044.5 1.37 84.05 23096.5 CME Grp 89.78 -0.07 100.87 81.87 2.08 25.31 30366.58 Perrigo 143.28 -1.30 215.73 138.74 0.32 149.57 20976.49
UnibailR 228.70 -3.30 262.00 212.30 3.98 13.89 24588.01 TaiwanSem 144.00 2.00 155.00 112.50 3.01 12.75 111758.9
CanNatRs 28.85 -1.14 42.46 21.27 3.14 73.99 22546.7 Seven & I 5499 187.00 5998 4292.5 1.28 30.31 40277.17 Coca-Cola 43.04 0.12 43.91 36.56 2.85 29.11 187175.97 Pfizer 30.23 -0.27 36.46 28.47 3.45 23.94 186115.57
Vinci 63.64 1.22 63.64 46.55 2.60 19.43 40845.44
CanNatRy 73.51 -2.44 88.89 66.62 1.60 17.46 41390.02 ShnEtsuCh 6151 70.00 8310 5593 1.64 19.85 21961.48 Thailand (THB) Cognizant 62.58 -0.73 69.80 53.33 - 25.88 38144.34 Phillips66 78.53 -1.62 94.12 68.84 2.56 9.66 41891.07
Vivendi♦ 18.96 -1.07 24.83 18.10 10.26-226.42 28261.39
Enbridge 46.48 -2.18 66.14 40.03 3.72-120.92 28790.35 Softbank 5455 190.00 7827 4540 0.70 12.11 54117.76 PTT Explor 240.00 4.00 382.00 197.00 4.27 -77.44 19257.31 ColgtPlm♦ 66.14 -1.39 71.56 50.84 2.12 25.79 59322.42 PhilMorris 89.86 -0.15 90.31 75.27 4.24 20.36 139219.71
GtWesLif 34.71 -0.01 37.70 30.42 3.67 12.78 24615.69 Germany (€)
Sony 2836 313.00 3970 2361 0.76 35.62 29582.18 United Arab Emirates (Dhs) Comcast 55.55 -0.16 64.99 50.01 1.67 18.36 116349.99 PNCFin♦ 86.05 -0.60 100.52 82.54 2.18 12.21 44567.05
ImpOil 40.99 -1.96 55.37 37.25 1.15 20.80 24804.09 Allianz 147.50 -1.15 170.15 131.05 4.52 10.74 73430.25
SumitomoF 3677 -303.00 5770 3660 4.14 9.19 42962.05 Emirtestele 16.25 0.10 16.60 10.05 3.76 18.55 34980.56 ConocPhil 38.25 -0.83 70.11 32.71 7.27 -49.19 47225.06 PPG Inds 95.15 0.03 118.95 82.93 1.39 23.45 25620.96
Manulife 19.11 -0.36 24.20 17.13 3.37 15.26 26903.1 BASF 60.44 -0.66 97.22 59.00 4.50 11.27 60472.83
Takeda Ph 5845 72.00 6657 5086 2.95 -31.32 38163.09 United Kingdom (p) Corning 18.65 0.04 25.05 15.42 2.34 12.84 22056.75 Praxair 100.11 0.11 130.38 95.60 2.65 21.50 28515.88
Potash 22.09 -0.75 47.10 20.65 8.78 9.43 13192.82 Bayer 102.55 -0.85 146.45 98.64 2.13 23.42 92380.55
TokioMarine 4571 323.00 5504 3839 2.25 19.00 28610.98 AscBrFd 3150 - 3606 2705.75 1.08 44.14 35840.38 Costco 152.01 0.89 169.73 117.03 0.98 29.84 66850.54 Prec Cast 234.95 0.10 234.99 187.00 0.05 26.36 32324.69
RylBkC 71.08 -1.47 81.53 64.95 4.32 10.62 75436.95 BMW 75.47 -1.19 123.75 72.05 3.74 9.06 49491.9
Toyota 7339 139.00 8783 6392 2.94 10.49 202417.37 AstraZen 4504 16.50 4931.68 3746 4.12 50.88 81830.82 CrownCstl 86.84 0.64 89.44 75.71 3.58 59.69 28984.7 Priceline 1093.2 28.23 1476.52 993.50 - 24.07 54423.74
Suncor En 31.63 -1.55 40.93 27.32 3.54 481.23 32653.26 Continental 190.70 -1.90 234.25 171.30 1.66 14.74 41548.99
Mexico (Mex$) Aviva 475.50 -5.30 578.68 428.40 3.81 12.44 27667.79 CSX 22.71 -0.31 37.67 21.33 2.84 11.90 22141 ProctGmbl♦ 81.18 -0.51 86.78 65.02 3.16 27.01 219556.63
ThmReut 52.33 -0.07 55.92 47.25 3.39 15.64 28565.18 Daimler 63.74 -0.42 96.07 62.06 3.74 9.08 74284.23
AmerMvl 12.79 0.35 17.17 10.87 1.96 23.27 29580.65 Barclays 182.80 -3.20 289.90 175.15 3.56 80.71 44155.17 CVS♦ 96.92 0.33 113.65 81.37 1.30 22.96 107321.18 Prudntl 69.43 -0.65 92.60 65.07 3.17 9.55 31174.07
TntoDom 52.15 -1.00 56.48 47.75 3.82 12.42 69096.54 Deut Bank 16.32 -0.08 33.42 15.97 4.47 -5.50 24520.95
FEMSA UBD 171.81 3.22 172.19 124.27 0.64 33.36 33838.82 BG 1047.5 -7.00 1301.62 808.80 1.82 -20.23 51458.7 Danaher 85.50 -1.15 97.62 81.25 0.56 25.04 58591.89 PublStor 253.20 -0.36 255.97 182.08 2.32 44.75 43777.24
TrnCan 47.90 -0.75 59.50 40.58 4.22 20.49 24027.43 Deut Tlkm 16.02 - 17.63 13.39 3.04 33.99 80367.23
WalMrtMex 45.58 0.89 47.00 28.32 1.19 34.76 43809.55 BP 366.95 -9.15 499.25 252.55 7.34 -13.41 96943.13 Deere 76.61 -0.40 98.23 70.16 2.92 14.27 24262.43 Qualcomm 45.55 0.21 74.09 43.47 3.98 15.55 68092.12
ValeantPh 126.63 -2.37 347.84 92.65 - 54.46 30845.3 DeutsPost 22.30 -0.04 31.19 21.92 - 19.18 29415.96
BrAmTob 3864 -33.00 3931.5 3231.5 3.83 17.94 103526.35 Delphi 65.79 0.85 90.57 63.47 1.44 14.61 18427 Raytheon♦ 124.68 -3.56 129.99 95.32 1.99 19.41 37540.9
E.ON 9.59 0.16 14.85 7.08 1.42 -2.13 20897.6 Netherlands (€)
China (HK$) BSkyB 1097 15.00 1180 899.50 2.99 30.04 27101.79 Delta 45.08 0.79 52.77 34.61 0.85 13.69 35454.23 Regen Pharm 409.80 -10.29 605.93 393.00 - 85.38 41861.58
Fresenius Med 82.89 1.22 83.17 62.65 0.90 27.66 28250.31 Altice 13.73 0.49 47.73 9.98 - 252.69 12278.17
AgricBkCh 2.74 -0.01 4.55 2.63 7.83 4.29 10830.52 BT♦ 494.20 9.35 502.60 404.00 2.31 18.62 70756.37 DiscFinServ 45.86 0.07 61.50 44.65 2.15 9.97 19602.27 ReynoldsAm 50.07 0.12 50.42 33.71 2.59 19.88 71555.11
Fresenius SE 60.72 -0.22 70.00 46.20 0.70 27.21 36045.25 ASML Hld 84.50 0.28 104.85 70.25 0.81 26.96 39888.22
Bk China 3.03 -0.01 5.68 2.91 7.39 4.66 32581.75 Compass♦ 1199 -4.00 1223.36 963.00 2.29 22.97 28331.78 Disney 95.41 -0.41 122.08 90.00 1.80 20.50 156635.14 Salesforce 68.24 0.18 82.90 55.45 - -546.71 45311.36
HenkelKgaA 84.20 -0.65 99.44 75.76 1.49 21.21 23829.29 Heineken 80.45 0.43 85.90 63.71 1.28 24.43 50479.76
BkofComm 4.59 -0.12 8.61 4.47 6.93 4.39 20665.05 Diageo 1910.5 26.00 2015 1592.5 2.95 19.44 69096.37 DominRes 71.06 -1.11 78.88 64.54 3.39 24.80 42304.41 Schlmbrg 70.93 -1.34 95.13 59.60 2.75 44.62 89110.16
Linde 122.65 -1.95 195.55 116.40 2.50 20.55 24815.55 ING 10.50 -0.10 16.00 10.16 - 23.85 44263.1
BOE Tech 1.93 0.12 4.78 1.17 1.90 28.50 49.38 GlaxoSmh 1434.5 -4.50 1645 1227.5 5.58 7.10 100404.5 DowChem 42.10 0.10 57.10 35.11 3.79 11.96 48756.09 Shrwin-Will 254.88 -0.79 294.35 218.27 0.95 25.74 23729.46
MuenchRkv 174.40 -2.45 206.50 156.00 4.32 9.66 31697.41 Unilever 40.88 -0.02 42.84 32.86 2.65 25.82 76351.87
Ch Coms Cons 6.68 -0.13 17.00 5.77 2.98 6.70 3803.13 Glencore 87.99 -1.49 318.46 66.67 13.01-204.63 18203.45 DukeEner 77.56 2.26 89.39 65.50 3.93 23.75 53387.21 SimonProp 189.01 2.73 208.14 170.99 2.89 37.25 58483.11
SAP 73.19 - 75.75 53.91 1.46 29.16 97947.92 Norway (Kr)
Ch Evrbrght 3.52 -0.11 5.65 3.22 6.23 4.81 3109.06 HSBC 484.40 -7.90 674.57 461.80 6.92 9.55 137050.32 DuPont 52.68 -0.08 76.61 47.11 3.26 15.95 46169.12 SouthCpr 25.00 -0.92 33.31 21.55 1.59 20.68 19634.4
Siemens 87.45 -0.73 106.35 77.91 3.67 14.28 83927.15 DNB 100.90 -3.30 143.00 90.10 3.80 7.35 18899.67
Ch Rail Cons 7.56 -0.11 17.70 6.72 2.34 6.86 2018.45 ImpTob 3803 17.00 3806 2921 3.47 21.50 52399.79 Eaton 49.46 -1.05 73.82 46.19 4.11 12.07 22890.09 Starbucks 61.27 0.50 64.00 42.05 1.08 38.54 90566.88
Volkswgn 119.70 -0.90 254.50 95.00 3.90 9.78 38478.24 Statoil 114.20 -4.20 161.70 97.25 6.10 -10.09 41876.28
Ch Rail Gp 5.28 -0.26 12.30 4.21 1.74 9.21 2856.65 LlydsBkg 64.19 -1.27 89.35 61.00 2.34 38.28 65919.78 eBay 23.82 0.36 29.83 22.11 - 10.14 28599.58 StateSt 54.74 -0.99 81.26 50.73 2.22 13.50 22086.83
ChConstBk 4.71 -0.02 7.98 4.46 7.53 4.41 145611.15 Hong Kong (HK$) Telenor 139.30 -1.50 186.10 132.10 2.64 35.21 24052.47 Ecolab 106.97 -0.90 122.48 99.99 1.17 30.22 31588.62 Stryker 98.14 -1.01 105.34 86.68 1.33 33.58 36853.75
Natl Grid 989.70 3.90 992.50 806.40 4.33 17.25 53299.1
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36586.73 AIA 42.15 -0.70 58.20 38.85 0.97 20.56 65302.89 Qatar (QR) EMC 24.75 -0.02 29.24 22.66 1.76 21.87 47986.22 Sychrony Fin 28.42 - 36.40 26.28 - 11.39 23697.33
Prudential 1326.5 -41.00 1761.5 1045.99 2.78 13.50 49044.27
ChinaCitic 4.43 -0.09 7.40 4.22 - 4.34 8477.62 BOC Hold 20.00 -0.50 33.70 19.40 5.13 8.91 27191.08 QatarNtBk 163.90 8.50 208.50 147.00 4.46 10.45 31502.72 Emerson 45.34 -0.64 62.75 41.25 3.93 11.93 29677.62 Target 72.66 0.24 85.81 66.46 2.72 17.48 44762.31
RBS 249.10 -3.60 414.00 244.80 - -11.17 41618.27
ChinaLife 18.00 -0.78 41.00 17.88 2.58 11.32 17223.49 Ch OSLnd&Inv 22.40 - 34.05 20.45 2.25 6.73 28402.61 EOG Res 67.98 -3.04 101.36 57.15 0.94 -10.29 37370.89 TE Connect 57.52 0.36 73.73 54.32 2.17 21.21 21523.82
Russia (RUB) ReckittB 6271 37.00 6450 5403 2.22 26.65 63734.79
ChinaMBank 14.72 -0.20 26.85 14.34 5.37 5.47 8689.89 ChngKng 41.25 -0.40 77.55 38.20 - 9.48 20473.05 EquityResTP 77.73 0.64 82.53 61.90 2.63 35.53 28314.07 Telsa Mtrs 195.94 4.74 286.65 181.40 - -38.74 25658.47
Gzprm neft 133.90 -2.70 166.94 122.75 5.96 10.05 41371.83 RELX 1228 -2.00 1239 988.50 2.12 28.20 36210.47
ChinaMob 85.50 -0.20 118.00 79.00 3.12 14.03 225116.67 Citic Ltd 10.72 -0.22 16.40 10.44 1.84 5.52 40100.64 Exelon 29.88 0.31 37.00 25.09 3.94 13.99 27471.99 TexasInstr♦ 52.99 0.06 59.99 43.49 2.44 20.06 53753.7
Lukoil 2547 -22.00 3297.7 2040.1 7.57 20.34 28274.62 RioTinto 1696 -18.00 3280 1557 8.05 16.87 33492.38
ChinaPcIns 26.50 -0.80 47.10 24.80 2.16 13.52 9457.22 Citic Secs 14.90 -0.02 40.50 12.82 2.23 6.95 4365.25 ExpScripts 71.86 -0.01 94.61 68.06 - 23.51 48597.19 TheTrvelers 107.03 -0.01 116.48 95.21 2.06 10.02 32560.54
MmcNrlskNckl 8698 -152.00 12247 7840 17.11 9.73 17964.37 RollsRoyce 555.00 - 1061 504.50 4.16 -40.81 14666.15
ChMinsheng 6.78 -0.06 11.88 6.30 3.21 4.56 6044.97 CK Hutchison 97.55 1.20 174.90 92.00 3.43 4.20 48415.66 ExxonMb 75.81 -2.04 93.45 66.55 3.55 16.87 315598.61 ThrmoFshr 130.58 -1.48 143.65 117.10 0.44 27.99 52114.18
Novatek 630.00 -9.20 646.30 410.80 10.31 51.81 24965.9 RylDShlA 1494.5 -23.50 2195.5 1256 8.40 90.33 85720.49
ChMrchSecs RMB 14.60 -0.38 40.00 13.85 2.81 8.53 10658.94 CNOOC 7.63 -0.25 13.78 6.41 6.82 7.20 43805.4 Facebook 114.75 2.54 115.28 72.00 - 91.51 263344.35 TimeWrnr 72.58 2.14 91.34 62.94 1.79 17.57 59194.9
Rosneft 269.80 -2.65 294.20 214.80 3.37 6.57 37319.36 SABMill 4194.5 12.00 4206.5 2773 1.77 34.75 97679.06
Chna Utd Coms RMB 3.96 -0.09 10.74 3.86 1.67 27.41 12758.66 HangSeng 127.70 -0.80 162.10 121.10 4.02 9.97 31394.27 Fedex 131.03 -1.85 185.19 119.71 0.66 35.02 36113.87 TimeWrnrC 182.17 0.16 194.22 134.21 1.95 28.69 51590.1
Sberbank 96.50 - 110.70 59.67 0.52 9.38 27188.11 Shire 3922 12.00 5870 3786 0.38 11.57 33402.15
ChShenEgy 11.36 -0.26 22.50 10.12 7.56 8.20 4964.58 HK Exc&Clr 168.10 -2.20 311.40 160.10 2.96 26.34 26123.7 FordMtr♦■ 12.03 0.09 16.74 10.44 4.53 10.63 46890.27 TJX Cos 71.92 0.68 76.93 63.53 1.00 23.55 48152.53
Surgutneftegas 36.71 0.15 39.80 28.52 - 1.25 17117.04 StandCh 460.00 -11.00 1166 450.00 11.15 10.75 21672.24
ChShpbldng RMB 5.86 -0.33 20.19 5.67 0.64-364.56 15995.24 MTR 35.10 0.35 40.00 33.10 2.74 14.06 26441.17 Franklin 33.57 -1.09 54.85 31.87 1.70 10.75 20163.25 T-MobileUS 39.92 -0.23 43.43 29.27 - 69.66 32576.21
Saudi Arabia (SR) Tesco 171.75 -1.65 252.52 137.00 0.68 -2.47 20095.23
ChStConEng RMB 5.02 -0.11 12.52 4.88 3.36 6.55 22814.39 SandsCh 26.90 0.10 39.85 20.75 6.78 15.98 27912.28 GenDyn♦ 133.02 -0.75 153.76 121.61 2.36 15.80 42051.37 UnionPac 72.33 0.33 124.52 67.06 2.82 13.17 61778.55
AlRajhiBnk 49.30 -0.31 69.00 44.70 3.60 13.17 21362.77 Vodafone♦ 225.45 1.55 258.00 201.25 4.98 -42.22 86046.14
ChUncHK 8.51 -0.04 16.00 7.87 2.77 18.86 26205.29 SHK Props 84.20 0.40 137.60 79.40 2.61 8.36 31327.5 GenElectric 28.66 -0.44 31.49 19.37 3.05 58.56 289730.79 UPS B 93.46 0.26 107.32 87.30 2.90 22.61 65061.49
Natnlcombnk 41.68 -0.36 72.75 36.60 1.82 9.96 22169.1 WPP 1516 -1.00 1616 1273 2.52 15.67 28209.77
CNNC Intl RMB 6.90 -0.18 14.38 4.07 - 19.77 4080.84 Tencent 147.00 2.10 171.00 124.00 0.23 42.78 177759.93 GenMills 56.56 0.05 59.87 47.43 2.92 24.47 33559.6 USBancorp 39.68 -0.38 46.26 37.97 2.39 13.25 69407.35
SaudiBasic 69.09 -1.30 110.50 59.50 7.05 9.25 55270.53 United States of America ($)
CSR 7.19 0.01 20.70 6.68 - 16.68 4041.31 India (Rs) GenMotors 29.76 0.12 39.00 24.62 4.21 11.51 46311.82 UtdHlthcre 115.03 -0.13 126.21 95.00 1.44 19.24 109636.06
SaudiTelec 62.19 1.39 73.25 52.75 6.10 13.40 33167.12 21stC Fox A 26.92 -0.05 35.85 22.81 1.06 7.39 31516.64
Daqin RMB 6.65 -0.16 15.15 6.61 7.09 7.13 15027.2 Bhartiartl 296.60 - 452.45 282.30 0.75 21.77 17475.55 GileadSci 83.89 0.89 123.37 82.28 0.97 8.12 120893.4 UtdTech 87.24 -0.45 124.45 83.39 2.73 14.44 77383.71
Singapore (S$) 3M 148.55 -2.45 170.50 134.00 2.51 20.26 91464.16
Gree Elec Apl 0.17 0.00 0.45 0.13 - -1.97 263.84 HDFC Bk 1059.75 - 1128 944.20 0.75 23.47 39442.25 GoldmSchs 160.12 -1.44 218.77 151.12 1.48 11.09 68296.97 ValeroEngy 68.41 0.54 73.88 51.50 2.05 8.01 32939.65
DBS 13.78 -0.28 21.50 13.45 4.14 10.98 24194.67 AbbottLb♦ 37.63 -0.22 51.74 36.00 2.37 23.57 56133.42
GuosenSec RMB 14.53 -0.06 34.94 13.76 1.35 8.97 4847.88 Hind Unilevr 800.95 - 981.00 766.40 1.77 37.85 25545.77 Halliburton 31.35 -0.45 50.20 27.64 2.18 107.34 26825.47 Verizon 50.65 0.68 50.86 38.06 4.15 21.41 206088.42
JardnMt US$ 52.70 0.20 67.00 45.00 2.51 13.42 37014.94 Abbvie♦ 53.22 -1.69 71.60 45.45 3.44 32.44 86993.06
HaitongSecs 11.50 -0.16 27.90 10.00 2.56 7.40 5042.04 HsngDevFin 1180.05 - 1402.3 1093.2 1.27 20.07 27459.41 HCA Hold 71.00 1.42 95.49 43.91 - 15.65 28944.41 VertexPharm 90.72 -0.03 143.45 81.98 - -34.85 22291.47
JardnStr US$ 26.94 -0.27 35.93 25.24 0.92 10.45 29985.53 Accenture 106.33 0.79 109.86 83.47 1.90 24.76 85725.73
Hngzh HikVDT RMB 26.29 -0.26 56.48 23.72 1.49 19.05 12610.37 ICICI Bk 217.20 - 382.00 215.95 2.26 9.97 18607.63 Hew-Pack 9.87 0.16 17.64 9.24 6.34 4.28 17685.54 VF Cp 63.11 0.51 77.83 52.21 1.92 27.72 26904.37
OCBC 7.73 -0.19 10.92 7.55 4.42 9.04 22335.29 Adobe 88.95 -0.18 96.42 69.04 - 75.05 44326.49
Hunng Pwr 6.49 0.14 11.90 5.89 6.86 6.40 3922.7 Infosys 1173.35 - 2336 932.65 3.47 20.10 39528.8 HiltonWwde 17.77 -0.04 31.60 16.16 0.37 24.74 17547.02 Viacom 45.79 0.15 73.52 36.32 3.03 10.20 15896.76
SingTel 3.49 -0.02 4.57 3.38 4.76 15.11 39080.74 AEP 62.30 1.33 64.27 52.29 3.23 18.22 30577.88
IM Baotou Stl RMB 2.82 -0.14 7.50 2.66 - -36.73 6747.66 ITC 324.75 - 409.95 294.00 1.94 25.78 38468.82 HomeDep 126.73 0.97 135.47 92.17 1.64 25.53 160684.81 Visa Inc 74.15 -0.35 81.01 60.00 0.66 27.75 142293.97
UOB 17.77 -0.32 25.05 17.01 4.54 9.32 20060.08 Aetna 103.78 1.94 134.40 90.20 0.89 16.78 36188.09
In&CmBkCh 4.00 -0.03 7.10 3.82 7.53 4.47 44643.38 L&T 1122.05 - 1893.8 1069.1 1.33 20.84 15400.83 Honywell 101.62 -1.58 107.41 87.00 1.93 18.76 78317.66 Walgreen 79.38 -0.34 97.30 73.00 1.68 20.22 85630.93
Aflac 56.59 -1.37 66.53 51.41 2.62 10.44 24149.14
IndstrlBk RMB 14.30 -0.16 21.42 11.90 3.91 5.56 41411.78 OilNatGas 225.05 - 373.80 205.95 4.31 10.01 28379.59 South Africa (R) HumanaInc 167.88 5.09 219.79 143.44 0.64 20.36 24883.83 WalMartSto 67.41 1.05 88.00 56.30 2.69 15.53 215839.62
AirProd♦ 129.86 3.15 158.20 114.64 2.34 23.28 27983.52
Kweichow RMB 201.29 0.64 290.00 166.20 2.13 16.02 38434.43 RelianceIn 1030.3 - 1089.75 796.45 0.97 11.40 49193.84 Firstrand 44.49 -0.23 58.47 34.08 5.14 9.34 15599.82 IBM 124.88 0.09 176.30 118.00 3.65 9.02 121147.35 WellsFargo 49.83 -0.40 58.77 46.88 2.76 12.70 255795.29
Alexion 142.45 -3.48 208.88 139.34 - 135.99 32097.45
Midea 1.77 0.02 2.68 1.65 5.18 12.14 48.94 SBI NewA 172.75 - 330.50 171.50 1.99 7.28 19765.97 MTN Grp 127.00 -12.50 250.00 109.56 11.81 6.33 14650.43 IllinoisTool 89.55 -0.52 100.14 78.79 2.12 18.58 32550.69 Williams Cos 18.47 -0.83 61.38 12.77 12.23 43.47 13848.15
Allegran 283.55 -0.88 340.34 237.50 - -40.56 111754.01
New Ch Life Ins 25.65 -0.75 56.55 25.40 0.95 7.44 3410.84 SunPhrmInds 872.30 - 1200.8 704.00 - 74.96 30942.34 Naspers N 1972.96 -23.04 2270 1521.98 0.26 56.48 54001.29 Illumina 157.11 -0.84 242.37 130.00 - 48.34 23000.9 Yahoo 29.11 -0.40 46.17 27.20 - 120.13 27490.18
Allstate 60.78 0.18 72.87 54.12 1.84 11.16 23538.53
PetroChina 4.61 -0.14 11.04 4.16 4.02 16.86 12507.43 Tata Cons 2402.7 - 2812.1 2243 1.66 21.90 69781.82 South Korea (KRW) Intcntl Exch 266.14 2.34 267.05 202.79 0.77 26.53 29212.77 Yum!Brnds♦ 72.76 0.39 95.90 66.35 2.14 36.66 31376.71
Alphabet 768.32 6.97 798.69 518.18 - 37.36 223832.96
PingAnIns 34.20 -0.75 62.90 33.30 2.33 9.45 32752.81 Indonesia (Rp) HyundMobis 251000-7500.00 272000 185500 1.15 13.18 20352.61 Intel 30.87 -0.16 35.59 24.87 2.90 13.93 145651.94 Venezuela ()
Altria 61.15 0.04 61.74 47.31 3.30 24.25 119895.55
PngAnBnk RMB 9.80 -0.20 17.50 9.30 1.74 6.34 17583.2 Bk Cent Asia 13225 125.00 15600 11000 0.99 20.90 23909.2 KoreaElePwr 53200 600.00 54000 40800 0.90 2.91 28448.55 Intuit 95.91 0.40 109.21 79.63 1.02 62.88 25320.66 Bco de Vnzla 102.00 -2.99 143.95 30.00 - - 27556.14
Amazon 577.61 -9.39 696.44 340.74 - 878.38 270762.09
Pwr Cons Corp RMB 6.10 -0.21 20.00 5.93 1.61 12.22 3059.73 SK Hynix 28400 1100 51700 25800 1.02 4.66 16714.55 John&John 104.05 -0.39 105.49 81.79 2.64 21.04 287900.48 Bco Provncl 3850 50.00 4400 850.00 0.12 51.91 30750.8
Israel (ILS) AmerAir 39.48 0.49 56.05 34.10 0.96 5.98 24885.25
SaicMtr RMB 18.59 -0.03 29.18 14.00 6.87 7.24 31154.5 SmsungEl 1163000 13000 1510000 1033000 1.69 8.87 140537.81 JohnsonCn 35.03 -0.84 54.52 33.62 2.82 16.94 22696.23 Mrcntl Srvcs 5000 - 5900 1310 0.15 39.49 22000.5
TevaPha 244.90 5.40 275.90 214.70 1.99 32.04 63188.08 AmerExpr♦ 54.07 0.57 86.18 52.15 1.93 10.14 53218.18
ShenwanHong 0.13 0.00 0.41 0.12 - -2.12 42.70 Spain (€) JPMrgnCh 58.88 -0.62 70.61 50.07 2.71 10.57 216744.92
Italy (€) AmerIntGrp 56.05 -0.43 64.93 48.75 1.11 17.13 69333.31
ShgPdgBk RMB 16.50 -0.40 20.12 11.91 4.50 6.35 46782.53 Kimb-Clark 128.35 -0.07 130.05 103.04 2.57 81.45 46590.33 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.76 -0.01 4.50 3.49 3.62 64.43 38495.18 BBVA 5.80 -0.10 9.77 5.55 2.68 15.17 40233.03 AmerTower 93.35 -0.99 104.12 86.21 1.73 73.45 39540.28
Sinopec Corp 4.32 -0.01 7.79 3.86 5.42 21.11 14172.97 KinderM♦ 15.13 -1.33 44.71 11.20 11.67 29.71 33751.66 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 13.14 -0.14 17.66 12.01 7.10 -17.73 52019.87 BcoSantdr 3.81 -0.13 7.17 3.70 12.67 7.53 59846.27 Amgen 150.79 -1.94 181.81 130.09 1.88 18.99 113745.1
Sinopec Oil RMB 6.04 -0.17 14.23 5.71 - -177.44 413.13 Kraft Heinz 76.54 -1.52 81.20 61.42 0.68 -52.90 92877.9 based on intraday trading over a rolling 52 week period.
Generali 13.55 -0.24 19.21 13.29 4.31 11.27 22980.49 CaixaBnk 2.73 -0.05 4.53 2.59 2.85 23.66 17294.69 Anadarko 37.33 -1.76 95.94 28.16 2.74 -3.43 18968.97
Denmark (kr) Iberdrola 6.52 0.07 6.71 5.66 2.31 17.20 45007.94 Kroger 39.95 1.14 42.75 27.32 0.89 21.14 38940.17 ♦ ex-dividend
IntSPaolo 2.56 -0.06 3.65 2.47 2.66 15.17 44262.65 Anthem 130.51 0.02 173.59 126.25 1.68 13.17 34060.97
DanskeBk 179.90 -4.80 218.00 161.20 2.97 27.34 26485.88 Inditex 30.47 0.28 35.38 25.46 1.25 35.47 103432.33 L Brands 97.08 0.93 101.11 75.11 1.76 26.23 28098.29 ■ ex-capital redistribution
Luxottica 54.25 -3.30 67.80 50.10 1.29 33.89 28582.53 Aon Cp♦ 87.39 -0.44 107.08 83.83 1.19 21.04 23937.59
MollerMrsk 8855 35.00 16450 7550 3.19 8.35 13756.35 Repsol 9.21 -0.29 18.75 7.95 10.10 27.74 14043.58 LasVegasSd 44.35 -0.75 61.59 34.88 5.24 16.81 35366.8 # price at time of suspension
Unicred 3.52 -0.03 6.61 3.44 3.32 11.32 22868.19 Apple 96.43 -0.91 134.54 92.00 2.05 10.53 534664.14
NovoB 380.50 0.60 415.00 274.30 1.28 30.61 114555.94 Telefonica 9.57 -0.11 14.31 8.74 4.06 16.56 50705.75 LibertyGbl 34.28 -0.13 58.66 31.63 - -23.31 8664.48
ArcherDan 34.91 -0.44 53.31 29.86 2.94 12.71 20832.19
Lilly (E) 78.17 -0.93 92.85 68.31 2.42 37.27 86618.34

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
NTTDCMo 2885.00 2527.00 358.00 14.17 557.50 24.0 16.14 MTN Grp 127.00 139.50 -12.50 -8.96 -12361.00 -99.0 -4.43 Feb 01 date Coupon S* M* F* price yield yield yield US Feb 01 date Coupon S* M* F* price yield yield yield US
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 Naspers N 1972.96 1996.00 -23.04 -1.15 -180027.04 -98.9 -6.94 High Yield US$ US$
CanNatRs 29.99 29.99 0.00 0.00 5.09 20.4 -4.60 Firstrand 44.49 44.72 -0.23 -0.51 -4018.51 -98.9 5.00 Navient Corporation 06/18 8.45 BB- Ba3 BB 101.99 7.65 -0.03 0.96 6.82 Halliburton Company 02/27 6.75 A A2 A- 116.14 4.90 0.00 0.19 2.94
JapanTob 4835.00 4661.00 174.00 3.73 794.00 19.6 8.14 ChShpbldng 5.86 6.19 -0.33 -5.33 -2.01 -25.5 -37.66 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 101.12 6.72 0.00 -0.28 4.76
Facebook 114.75 112.21 2.54 2.26 17.74 18.3 9.72 Fanuc 15915.00 15810.00 105.00 0.66 -2860.00 -15.2 -24.50 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Archer Daniels Midland Company 12/27 6.75 A A2 A 121.90 4.41 0.00 -0.07 2.46
NipponTT 5378.00 5028.00 350.00 6.96 766.00 16.6 11.21 Chna Utd Coms 3.96 4.05 -0.09 -2.22 -0.70 -15.0 -35.92 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 121.17 4.61 0.00 -0.26 -
KDDI 3214.00 3008.00 206.00 6.85 445.00 16.1 1.90 Regen Pharm 409.80 420.09 -10.29 -2.45 -63.32 -13.4 -24.53 Emerging US$ E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 117.13 4.67 0.00 0.06 -
SandsCh 26.90 26.80 0.10 0.37 3.65 15.7 1.32 Pwr Cons Corp 6.10 6.31 -0.21 -3.33 -0.93 -13.2 -24.03 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.56 4.67 0.00 -0.44 -
MitsuiFud 3012.00 2803.00 209.00 7.46 405.50 15.6 -1.44 CNNC Intl 6.90 7.08 -0.18 -2.54 -1.00 -12.7 -27.67 Brazil 01/18 8.00 BB+ Baa3 BB+ 104.60 5.49 -0.16 -0.79 4.66
Russia 07/18 11.00 BB+ Ba1 BBB- 117.26 3.67 -0.01 0.19 2.84 Euro
Anadarko 37.33 39.09 -1.76 -4.50 5.02 15.5 -23.10 IM Baotou Stl 2.82 2.96 -0.14 -4.73 -0.32 -10.2 -21.88 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 94.99 3.17 0.00 0.04 1.21
Ch Rail Gp 5.28 5.54 -0.26 -4.69 0.68 14.8 -10.36 GuosenSec 14.53 14.59 -0.06 -0.41 -1.62 -10.0 -26.43 Peru 03/19 7.13 BBB+ A3 BBB+ 113.70 2.60 0.00 0.02 1.77
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Electricite de France (EDF) 03/27 4.13 A+ A1 A 120.15 2.08 0.00 0.18 0.12
LasVegasSd 44.35 45.10 -0.75 -1.66 5.24 13.4 1.09 Daqin 6.65 6.81 -0.16 -2.35 -0.74 -10.0 -22.85 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 100.51 3.20 0.00 0.57 1.24
TokioMarine 4571.00 4248.00 323.00 7.60 514.00 12.7 -2.99 Illumina 157.11 157.95 -0.84 -0.53 -17.37 -10.0 -18.27 Brazil 01/21 7.88 BB+ Baa3 BB+ 94.86 6.09 0.13 -0.59 4.72
Colombia 07/21 4.38 BBB Baa2 BBB 100.33 4.35 -0.01 0.02 2.97 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 109.49 2.28 0.00 -0.14 -
MitsubEst 2430.50 2367.50 63.00 2.66 269.50 12.5 -3.69 ChMrchSecs 14.60 14.98 -0.38 -2.54 -1.60 -9.9 -32.72
Poland 03/22 5.00 A- A2 A- 110.47 3.14 0.00 0.03 1.76 Yen
Sony 2836.00 2523.00 313.00 12.41 307.50 12.2 -5.53 Abbvie 53.22 54.90 -1.69 -3.07 -5.44 -9.3 -10.21
Turkey 09/22 6.25 - Baa3 BBB- 110.05 4.53 0.00 -0.32 3.16 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Schlmbrg 70.93 72.27 -1.34 -1.86 7.63 12.0 1.66 eBay 23.82 23.46 0.36 1.53 -2.32 -8.9 -13.36
EastJpRwy 11325.00 10990.00 335.00 3.05 1215.00 12.0 -1.09 Celgene 97.79 100.32 -2.53 -2.52 -8.91 -8.4 -18.38 Turkey 04/26 4.25 - Baa3 BBB- 95.63 4.85 0.00 -0.28 2.90 £ Sterling
ConocPhil 38.25 39.08 -0.83 -2.12 4.05 11.8 -18.21 ChStConEng 5.02 5.13 -0.11 -2.14 -0.44 -8.1 -20.82 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
AirProd 129.86 126.71 3.15 2.49 13.55 11.6 -0.12 Alexion 142.45 145.93 -3.48 -2.38 -12.09 -7.8 -25.37 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
Petrobras 6.93 6.93 0.00 0.00 0.72 11.6 -22.17 MitUFJFin 576.10 609.40 -33.30 -5.46 -48.60 -7.8 -23.91 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.67 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ A3 BBB+ 121.63 2.06 0.00 0.00 0.68 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 115.61 3.84 0.00 -0.05 1.88
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Feb 01 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Feb 01 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 20.45 0.25 20.20 53.29 10.88 Feb 01 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 20.23 0.66 19.57 56.32 7.04 Tr 4pc '16 102.15 0.37 5.71 0.00 15.63 5.71 102.23 100.00 0.35
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 173.96 0.76 0.39 0.39 0.19 -3.76 VXN 23.99 0.35 23.64 46.72 11.15 Tr 1.75pc '17 101.35 0.35 16.67 6.06 -25.53 -14.63 102.54 101.34 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 297.09 0.63 0.65 0.65 0.31 -3.11 VDAX 25.83 -1.56 27.39 30.63 - Tr 5pc '18 109.68 0.35 16.67 -12.50 -48.53 -39.66 113.36 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 249.36 0.04 -0.04 -0.04 -0.04 -0.04 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.97 0.59 11.32 -9.23 -39.18 -21.33 114.88 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 212.39 0.35 0.52 0.52 0.56 -0.98 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.83 0.81 8.00 -7.95 -32.50 -10.99 118.80 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 229.71 0.51 1.96 1.96 2.05 1.60 Tr 1.5pc '21 102.05 1.08 6.93 -6.90 -27.52 8.00 142.53 99.91 0.16
Gilts( £) 297.85 0.82 3.83 3.83 3.40 0.23 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.90 1.12 5.66 -6.67 -25.83 3.70 119.48 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 240.57 0.55 0.94 0.94 0.16 -4.44 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 129.49 1.52 4.83 -2.56 -18.72 15.15 134.22 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.89 0.63 1.34 1.34 0.99 -2.20 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 126.32 1.78 4.09 -2.73 -16.43 17.88 131.38 119.79 0.31
Feb 01 (Libor: Jan 29) night Day Week Month month month month year Overall ($) 227.73 0.06 1.20 1.20 1.20 1.20 Australia 10/18 3.25 103.62 1.87 -0.01 -0.07 -0.08 0.00 Tr 4.25pc '32 129.51 2.11 3.43 -1.86 -12.81 19.21 136.52 121.93 0.35
US$ Libor 0.36740 0.000 0.246 0.000 0.42500 0.61260 0.86025 1.13975 Overall( £) 295.46 0.77 3.09 3.09 2.69 -0.49 11/27 2.75 99.65 2.79 -0.02 0.00 0.00 0.00 Tr 4.25pc '36 131.52 2.28 2.70 -2.15 -12.31 19.37 140.03 123.52 0.28
Euro Libor -0.28286 0.000 -0.001 0.000 -0.23286 -0.18071 -0.10643 0.00329 Overall(€) 224.08 0.43 1.54 1.54 1.60 1.02 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 141.72 2.39 3.02 -1.65 -10.49 19.50 152.79 132.20 0.26
£ Libor 0.47813 0.000 -0.002 0.000 0.50944 0.58938 0.73313 0.99713 Treasuries ($) 220.93 0.05 1.91 1.91 1.91 1.91 10/25 1.20 105.58 0.61 0.03 -0.11 -0.25 0.00 Tr 3.75pc '52 135.01 2.32 2.65 -1.28 -10.42 14.85 144.82 121.95 0.22
Swiss Fr Libor 0.000 -0.78900 -0.75700 -0.69340 -0.62320 FTSE Belgium 06/18 0.75 101.81 -0.03 0.00 0.00 0.00 0.00 Tr 4pc '60 147.91 2.27 3.18 -0.87 -10.98 13.50 158.80 131.72 0.22
Yen Libor 0.000 0.02143 0.04771 0.06143 0.15257 Sterling Corporate (£) 110.38 -0.20 - - 0.61 -7.24 06/26 1.00 101.88 0.81 0.03 -0.12 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.22900 -0.16200 -0.08900 0.01500 Euro Corporate (€) 105.97 0.03 - - 0.62 -4.48 Canada 11/17 0.25 99.71 0.42 0.00 -0.01 -0.07 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 782.92 1.40 - - -9.33 -18.93 06/26 1.50 101.36 1.36 0.02 -0.01 -0.17 0.00
US$ CDs
Euro CDs
0.000
0.000
0.42000
-0.24500
0.59000
-0.18500
0.83000
-0.09500
Eurozone Govt Bond 115.19 -0.18 - - 1.73 -1.58 Denmark 11/18 0.25 101.48 -0.28 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 110.59 0.63 0.02 -0.10 -0.24 0.00
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.80 1.09 0.00 -0.09 -0.22 0.00
Fixed Coupon Feb 01 chg % Return 1 month 1 year Yield
Feb 01 term notice month month month year Markit iTraxx 09/25 0.88 102.53 0.60 0.02 -0.13 -0.26 0.00
1 Up to 5 Years 98.92 -0.16 2386.13 0.72 1.41 0.72
Euro -0.35 -0.25 -0.35 -0.25 -0.32 -0.17 -0.26 -0.11 -0.17 -0.02 -0.07 0.08 Crossover 5Y 369.94 1.83 -4.14 55.32 397.02 280.05 France 05/19 1.00 104.20 -0.26 0.00 0.00 0.00 0.00
2 5 - 10 Years 182.57 -0.39 3304.75 1.82 1.48 1.36
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.95 1.10 Europe 5Y 93.26 1.38 -0.11 16.14 99.07 68.39 11/20 0.25 101.66 -0.10 0.00 0.00 0.00 0.00
3 10 - 15 Years 209.48 -0.65 3901.71 2.57 0.08 1.87
Swiss Franc - - - - - - - - - - - - Japan 5Y 82.32 -1.43 -8.46 7.62 94.85 65.01 11/25 1.00 103.01 0.68 0.04 -0.11 -0.25 0.00
4 5 - 15 Years 188.93 -0.46 3448.98 2.04 1.04 1.57
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 93.80 2.21 3.82 17.03 99.56 65.28 05/45 3.25 135.56 1.70 0.04 -0.14 -0.27 0.00
5 Over 15 Years 305.50 -1.19 4453.83 3.75 -3.40 2.32
US Dollar 0.32 0.42 0.32 0.42 0.35 0.45 0.55 0.65 0.75 0.85 1.10 1.20 Germany 04/19 0.50 102.91 -0.40 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 175.29 -0.66 3295.39 2.27 -0.79 2.04
Japanese Yen -0.20 -0.05 -0.20 -0.05 -0.25 0.00 -0.30 0.00 -0.15 0.10 -0.10 0.15 10/20 0.25 102.52 -0.28 0.00 0.00 0.00 0.00
Emerging Markets 5Y 368.68 -2.42 -5.13 10.58 400.12 299.17 02/26 0.50 101.45 0.35 0.03 -0.12 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 506.73 -8.81 -17.88 35.59 557.56 416.39 08/46 2.50 136.61 1.08 0.03 -0.15 -0.33 0.00
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Feb 01 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 101.77 -1.24 -2.38 13.42 110.98 75.52 Greece 07/17 3.38 89.96 11.22 -2.13 -1.97 3.83 0.00
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 308.98 -0.14 0.19 -1.28 2370.48 0.61 0.16
02/26 3.00 64.17 9.18 -0.16 -0.06 1.14 0.00 2 Over 5 years 577.63 -1.23 3.08 -2.64 4268.79 3.21 -1.92
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 109.97 -0.32 0.00 0.00 0.00 0.00 3 5-15 years 431.20 -0.59 1.50 -2.53 3287.76 1.83 -1.25
05/26 1.00 100.12 0.99 0.03 -0.07 0.00 0.00 4 Over 15 years 714.32 -1.48 3.72 -2.57 5177.19 3.76 -2.05
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.74 0.02 0.00 -0.03 -0.06 0.00 5 All stocks 533.91 -1.08 2.65 -2.44 3998.12 2.83 -1.61
11/20 0.65 100.94 0.45 0.02 -0.08 -0.12 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 104.78 1.48 0.06 -0.08 -0.08 0.00 Yield Indices Feb 01 Jan 29 Yr ago Feb 01 Jan 29 Yr ago
Crude Oil† Feb 32.32 -1.37 Corn♦ Mar 368.25 -3.25 Jan 29 Jan 29 Prev return stock Market stocks
09/46 3.25 112.74 2.66 0.07 -0.04 -0.01 0.00 5 Yrs 0.95 0.89 0.91 20 Yrs 2.34 2.27 1.95
Brent Crude Oil‡ 34.33 -1.59 Wheat♦ Mar 473.25 -5.75 Can 4.25%' 21 126.84 -0.304 -0.254 -0.22 5.18 70909.51 7
Japan 01/18 0.10 100.51 -0.16 0.00 0.00 0.00 0.00 10 Yrs 1.69 1.63 1.42 45 Yrs 2.29 2.23 2.04
RBOB Gasoline† Feb 1.10 -0.03 Soybeans♦ Mar 877.75 -3.75 Fr 2.25%' 20 114.12 -0.828 -0.767 -0.05 20.31 215344.98 14
02/21 0.05 100.09 0.03 0.00 -0.01 0.00 0.00 15 Yrs 2.13 2.07 1.76
Heating Oil† Feb 1.06 -0.02 Soybeans Meal♦ Mar 269.40 -2.60 Swe 0.25%' 22 108.73 -0.949 -0.897 1.50 32.00 236544.32 7
12/25 0.30 102.32 0.06 -0.04 -0.16 -0.20 0.00
Natural Gas† Feb 2.17 -0.14 Cocoa (ICE Liffe)X Mar 2067.00 58.00 UK 2.5%' 20 360.44 -1.323 -1.244 1.65 6.58 499679.03 25
12/45 1.40 108.73 1.02 -0.05 -0.16 -0.24 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2755.00 -10.00 UK 2.5%' 24 341.17 -0.898 -0.843 2.71 6.82 499679.03 25
Netherlands 04/17 0.50 101.13 -0.44 0.00 0.00 0.00 0.00 Real yield Feb 01 Dur yrs Previous Yr ago Feb 01 Dur yrs Previous Yr ago
Uranium Feb 36.75 0.00 Coffee(Robusta)X Mar 1375.00 -7.00 UK 2%' 35 234.37 -0.847 -0.811 4.26 9.08 499679.03 25
07/25 0.25 97.89 0.48 0.03 -0.11 -0.25 0.00 Up to 5 yrs -0.94 2.29 -1.00 -0.96 -1.69 2.30 -1.76 -1.59
Carbon Emissions - - Coffee (Arabica)♥ Mar 115.80 -0.65 US 0.625%' 21 102.59 0.148 0.218 1.71 35.84 1134496.56 36
Diesel Mar - - White SugarX 401.30 -5.70 New Zealand 03/19 5.00 107.39 2.52 -0.02 0.00 -0.20 0.00 Over 5 yrs -0.84 23.50 -0.89 -0.94 -0.87 23.59 -0.92 -0.97
US 3.625%' 28 133.08 0.779 0.218 1.65 16.78 1134496.56 36
Unleaded (95R) - - Sugar 11♥ 13.14 -0.02 04/27 4.50 112.35 3.18 -0.04 -0.10 -0.33 0.00 5-15 yrs -0.77 9.54 -0.83 -0.96 -0.88 9.55 -0.94 -1.09
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.69 0.60 0.00 -0.06 -0.07 0.00 Over 15 yrs -0.85 29.06 -0.90 -0.93 -0.87 29.10 -0.92 -0.96
Base Metals (♠ LME 3 Months) Cotton♥ Mar 60.89 -0.07 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 103.58 1.33 0.00 -0.10 -0.06 0.00 All stocks -0.84 20.45 -0.90 -0.94 -0.88 20.60 -0.94 -0.98
Aluminium 1518.00 3.00 Orange Juice♥ Mar 134.70 2.35 amount.
Aluminium Alloy 1615.00 65.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 112.71 0.89 0.04 0.05 0.23 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4532.50 -36.50 Live Cattle♣ Feb 134.80 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 99.18 2.97 0.10 -0.09 0.00 0.00
Lead 1722.50 7.50 Spain 04/18 0.25 100.42 0.06 0.00 -0.04 -0.05 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Mar 156.38 -3.63
Nickel 8510.00 -100.00 Lean Hogs♣ Feb 65.63 0.00 Spread Spread Spread Spread 04/26 1.95 102.64 1.67 0.06 -0.15 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 14875.00 175.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.69 1.12 0.00 -0.11 -0.30 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1617.00 -1.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 117.07 0.60 -0.01 -0.10 -0.32 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 29 Month Year Australia 2.79 2.43 0.83 Italy 1.48 1.13 -0.48 Switzerland 05/19 3.00 113.12 -0.93 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1126.50 14.70 S&P GSCI Spt 293.39 -5.92 -24.76 Austria 0.61 0.25 -1.35 Japan 0.06 -0.29 -1.89 05/26 1.25 115.96 -0.27 0.00 0.00 0.00 0.00
Silver (US cents) 1433.00 25.00 DJ UBS Spot 75.99 -3.31 -24.67 Belgium 0.81 0.46 -1.14 Netherlands 0.48 0.13 -1.48 United Kingdom 07/18 1.25 101.71 0.55 0.06 -0.06 -0.26 0.00 Data provided by Morningstar | www.morningstar.co.uk
Platinum 867.00 1.00 R/J CRB TR 164.18 -7.08 -25.17 Canada 1.36 1.01 -0.60 Norway 1.33 0.98 -0.63 01/21 1.50 102.04 1.08 0.07 -0.08 -0.30 0.00
Palladium 502.00 1.00 Rogers RICIX TR 1953.17 - - Denmark 0.63 0.28 -1.33 Portugal 2.97 2.61 1.01 09/25 2.00 103.32 1.62 0.06 -0.07 -0.25 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.60 0.25 -1.36 Spain 1.67 1.31 -0.29 12/46 4.25 141.07 2.37 0.07 -0.04 -0.19 0.00
Iron Ore (Platts) 43.35 0.95 UBS Bberg CMCI TR 11.50 -4.89 -25.39 France 0.68 0.33 -1.27 Switzerland -0.27 -0.63 -2.23 United States 12/17 1.00 100.32 0.83 0.03 -0.03 -0.21 0.00
Iron Ore (The Steel Index) 42.50 1.00 LEBA EUA Carbon 5.96 -14.86 -14.98 Germany 0.35 0.00 -1.60 United Kingdom 1.62 1.27 -0.33 12/20 1.75 101.76 1.38 0.05 -0.06 -0.36 0.00
GlobalCOAL RB Index 51.00 -3.00 LEBA CER Carbon 0.39 -18.75 -13.33 Greece 9.18 8.82 7.22 United States 1.96 1.60 0.00 11/25 2.25 102.61 1.96 0.03 -0.04 -0.29 0.00
Baltic Dry Index 314.00 -3.00 LEBA UK Power 2736.00 28.75 15.64 Ireland 0.99 0.64 -0.97 11/45 3.00 104.71 2.77 0.02 -0.02 -0.22 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 FINANCIAL TIMES Tuesday 2 February 2016

MANAGED FUNDS SERVICE

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

Far East $ 600.40 - -11.02 0.00 Franklin Emg Mkts Debt Opp USD $ 16.29 - -0.42 7.37 Invesco Energy A $ 15.28 - 0.54 0.00 US Government Bond A1 $ 17.26 - 0.04 0.00

ACPI Global UCITS Funds Plc (IRL) Chartered Asset Management Pte Ltd DSM Capital Partners Funds (LUX) Invesco Euro Corporate Bond Fund (A) € 16.80 - 0.03 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) Value A1 $ 20.72 - 0.52 0.00
www.acpishard.com Other International Funds www.dsmsicav.com PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Regulated Atlantis Investment Management Ltd (IRL) Regulated Frontier Capital (Bermuda) Limited Invesco Euro Inflation Linked Bond A € 15.56 - -0.05 0.00 Other International Funds
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL CAM-GTF Limited $ 265175.46 265175.46 622.65 0.00 Other International
ACPI Emerging Mkts FI UCITS Fund USD A $ 103.91 - 0.44 0.00 www.atlantis-investmenet.com, Tel: 0207 877 3377 Global Growth I2 Acc € 129.00 - 4.10 0.00 Invesco Euro Reserve A € 322.64 - 0.00 0.00 Lloydstrust Gilt £ 12.4000xd - 0.0100 2.27 MMIP Investment Management Limited (GSY)
CAM GTi Limited $ 605.58 - -7.40 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 - Regulated
ACPI Global Credit UCITS Funds USD A $ 13.85 - 0.02 0.00 Regulated Global Growth I1 Eur € 96.46 - 3.07 - Lloyds Investment Funds Limited
Invesco Euro Bond A € 7.13 - 0.00 0.00 Multi-Manager Investment Programmes PCC Limited
Atlantis China Fund $ 6.44 - 0.00 0.00 Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 Global Real Estate-GBP C Class £ 45.26 - -0.50 - Euro High Income € 1.6050xd - 0.0040 2.95
ACPI Global Fixed Income UCITS Fund USD A $ 152.54 - 0.29 0.00 Invesco European Growth Equity A € 23.28 - 0.28 0.00 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
Atlantis China Healthcare Fund $ 1.75 - 0.02 0.00 Edinburgh Partners Limited (IRL) European £ 7.3400 - 0.0710 1.29
Q ACPI India Fixed Income UCITS Fund USD A $ 9.69 - -0.04 - Invesco Global Absolute Return Fund A Class € 11.68 - 0.01 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00
Atlantis Japan Opportunities Fund $ 2.55 - 0.10 0.00
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 GYS Investment Management Ltd (GSY)
High Income £ 0.8504xd - -0.0027 5.04
ACPI India Fixed Income UCITS Fund USD A3 $ 82.89 - -0.31 0.00 Dealing - Fax only - +353 1 434 5230 Regulated Invesco Global Bond A Inc $ 5.44 - 0.00 0.76 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00
Atlantis Asian Fund $ 6.18 - 0.02 0.00 FCA Recognised Taurus Emerging Fund Ltd $ 162.84 166.17 7.81 0.00 International £ 3.9110 - 0.0840 1.10
ACPI International Bond UCITS Fund USD A $ 18.03 - 0.03 0.00 Invesco Global Conservative Fund 90 (EUR) A € 11.83 - 0.03 0.00 Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00
Edinburgh Partners Opportunities Fund PLC
North American £ 15.3700 - 0.4700 0.20
European Opportunities I EUR € 2.28 - 0.03 2.53 Invesco Global Equity Income Fund A $ 54.87 - 0.63 0.00 UK Equity Fd Cl A Series 01 £ 2318.62 2346.23 -38.83 0.00
ACPI Select UCITS Funds PLC (IRL) Generali Worldwide Sterling Bond £ 1.4460xd - 0.0020 3.74

AXIOM European Opportunities I GBP £ 1.74 - 0.04 2.61 Invesco Global Inc Real Estate Sec A dist $ 8.98 - 0.11 2.31 Diversified Absolute Rtn Fd USD Cl AF2 $ 1589.77 - 3.37 0.00
Regulated Cheyne Capital Management (UK) LLP (IRL) PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
UK £ 6.1770 - 0.0240 1.60
Regulated European Opportunities I USD $ 2.48 - 0.01 2.30 International Insurances Invesco Global Inv Grd Corp Bond A Dist $ 11.82 - 0.01 3.04 Diversified Absolute Return Stlg Cell AF2 £ 1610.37 - 2.62 0.00
ACPI Balanced UCITS Fund USD Retail $ 13.28 - 0.00 0.00 ALTERNATIVE INVESTMENTS Lloyds Gilt Fund Limited
Cheyne Convertibles Absolute Return Fund € 1313.66 - 1.53 0.00 Global Multi-Strategy Managed $ 4.44 4.79 0.07 0.00
European Opportunities A EUR € 2.23 - 0.04 1.77 Invesco Global Leisure A $ 33.84 - 0.84 0.00
ACPI Balanced UCITS Fund EUR Retail € 10.00 - -0.01 0.00 Lloyds Gilt Fund Quarterly Share £ 1.2930xd - 0.0020 1.80
Cheyne Global Credit Fund € 114.67 - 0.15 0.00 UK Multi-Strategy Managed £ 4.60 4.95 0.06 0.00 LNG Capital (CYM)
Global Opportunities I USD $ 1.50 - 0.02 2.29 Invesco Global Smaller Comp Eq Fd A $ 53.39 - 0.92 0.00
ACPI Balanced UCITS Fund GBP Retail £ 10.12 - 0.00 0.00 Monthly Share £ 1.2440xd - 0.0000 1.80
Axiom Alternative Investments (FRA) Cheyne European Mid Cap Fund € 1103.40 - 4.80 0.00 EU Multi-Strategy Managed € 2.91 3.14 0.06 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
1 Conduit Street - 4th floor - London W1S 2XA Global Opportunities I GBP £ 1.06 - 0.03 2.00 Invesco Global Structured Equity A $ 44.38 - 0.74 0.80 www.lngcapital.com, Tel: 0207 839 3456
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Lloyds Money Fund Limited
www.axiom-ai.com Tel: +44 330 822 0374 Global Bond USD $ 3.40 3.66 0.01 0.00 Regulated
Global Opportunities I EUR € 1.52 - -0.01 1.98 Invesco Global Total Ret.(EUR) Bond Fund A € 12.92 - 0.01 0.00 Sterling Class £ 52.6230 - 0.0010 0.10
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Regulated
Cheyne Capital Management (UK) LLP LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Axiom Contingent Capital € 999.83 - -0.77 - Global Opportunities A GBP £ 0.99 - 0.03 1.52 Invesco Gold & Precious Metals A $ 3.45 - 0.10 0.00 Lloyds Multi Strategy Fund Limited
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Other International Funds
Genesis Asset Managers LLP Invesco Greater China Equity A $ 39.49 - 0.27 0.00 Conservative Strategy £ 1.0930 - 0.0040 1.97 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
ACPI Horizon UCITS Fund $ 12.38 - 0.12 0.00 Axiom Contingent Capital £ 1004.68 - -0.80 - Cheyne European Event Driven Fund € 134.54 - -11.29 0.00 Pan European Opportunities I EUR € 1.40 - 0.02 -
Other International Funds
Growth Strategy £ 1.4550 - 0.0240 1.32 LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
Axiom Equity $ 757.26 - 20.23 - Invesco India Equity A $ 48.52 - 0.45 0.00
Cheyne Real Estate Credit Holdings Fund £ 162.87 - 1.01 0.00 Emerging Mkts NAV £ 5.03 - 0.18 0.00
Invesco Japanese Equity Adv Fd A ¥ 3705.00 - 63.00 0.00 Aggressive Strategy £ 1.7640 - 0.0520 0.00
Axiom Equity € 795.67 - 21.40 0.00 Cheyne Real Estate Credit Holdings Fund III £ 112.40 - 0.42 0.00
Global USD Growth Strategy $ 1.2850 - 0.0250 0.00
Marlborough International Management Limited (GSY)
Axiom Obligataire $ 1717.68 - 0.85 0.00 HPB Assurance Ltd Invesco Japanese Value Eq Fd A ¥ 1251.00 - 33.00 0.00 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Cheyne Real Estate Debt Fund Class A1 £ 132.13 - 0.48 0.00
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Dealing Daily FCA Recognised
Axiom Obligataire € 1713.21 - 0.64 0.00 Invesco Latin American Equity A $ 5.24 - 0.22 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 International Insurances Marlborough North American Fund Ltd £ 30.62 32.63 0.47 0.00
Axiom Obligataire £ 1726.36 - 0.66 0.00 Invesco Nippon Small/Mid Cap Equity A ¥ 1023.00 - 29.00 0.00
Cheyne Total Return Credit Fund 2020 $ 100.78 - -2.61 - Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00 M & G (Guernsey) Ltd (GSY)
Marlborough Tiger Fund Ltd F £ 23.89 25.45 0.14 0.00
EFG Hermes Invesco Pan European Equity A EUR Cap NAV € 17.28 - 0.16 0.00 Regulated
Algebris Investments (IRL) Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
Regulated DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE The M&G Offshore Fund Range
BLME Asset Management (LUX) Cohen & Steers SICAV (LUX) Invesco Pan European High Income Fd A € 13.36 - 0.02 2.55
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Algebris Financial Credit Fund - Class I EUR € 130.75 - 0.06 0.00 BLME Sharia'a Umbrella Fund SICAV SIF Regulated
Corporate Bond 1300.05 1340.26 -1.67 3.18 Marwyn Asset Management Limited (CYM)
Other International Funds Invesco Pan European Small Cap Equity A € 21.38 - 0.31 0.00 Regulated
Regulated Haussmann
Algebris Financial Income Fund - Class I EUR € 109.90 - 0.94 0.00 European Real Estate Securities € 22.3403 - 0.4841 1.88 Global Basics 2247.85 2317.37 44.07 0.33
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Other International Funds Invesco Pan European Structured Equity A € 16.68 - 0.24 0.00 Marwyn Value Investors £ 450.92 - -7.87 0.00
Income Fund - Share Class A Acc $ 1135.74 - 0.31 0.00
Algebris Financial Equity Fund - Class B EUR € 87.17 - 1.84 - Europ.RealEstate Sec. IX € 29.9617 - 0.6492 0.00 Global Leaders 3215.42 3349.39 74.47 1.15
EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - - Haussmann Cls A $ 2574.62 - -108.37 0.00
Income Fund - Share Class G Acc £ 1077.59 - 0.37 0.00 Invesco UK Eqty Income A £ 30.93 - 0.22 0.00
Algebris Asset Allocation Fund - Class B EUR € 95.64 - -0.75 - Gbl Listed Infrastructure I $ 9.7226 - 0.1528 - Global High Yield Bond 929.46 958.21 12.48 4.80
EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - - Haussmann Cls C € 2248.78 - -95.69 0.00 Meridian Fund Managers Ltd
Gl Sukuk Fund - Share Class A Acc $ 1207.45 - 0.98 0.00 Invesco UK Investment Grade Bond A £ 0.99 - 0.00 2.84
Gbl Listed Infrastructure IX $ 9.7649 - 0.1536 - Global Macro Bond Fund 11526.34 11882.82 55.56 1.96 Other International Funds
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Haussmann Cls D SFr 1188.89 - -51.05 0.00
Gl Sukuk Fund - Share class B Acc £ 1078.14 1078.14 0.97 0.00 Invesco US Structured Equity A $ 19.97 - 0.46 0.00
Alken Asset Management (LUX) Gbl RealEstate Sec. I $ 10.3507 - 0.2317 2.17 North American Dividend Fund 156.08 162.58 4.92 2.41 Global Gold & Resources Fund $ 184.00 - 2.35 -
Saudi Arabia Equity Fund SR 10.42 - -0.01 0.00 Invesco US Value Eq Fd A $ 28.36 - 0.75 0.00
61 Conduit Street, London, W1S 2GB
Gbl RealEstate Sec. IX $ 12.3238 - 0.2759 0.00 Optimal Income Fund 137.85 142.12 0.00 2.81 Global Energy & Resources Fund $ 31.18 - -3.49 -
www.alken-am.com Heartwood Wealth Management Limited (IRL)
Bank of America Cap Mgmt (Ireland) Ltd (IRL)
Regulated
Invesco USD Reserve A $ 87.02 - 0.00 0.00
Regulated Recovery Fund Limited 'A' Participating Shares 9194.34 9577.44 49.86 0.56
Regulated Ennismore Smaller Cos Plc (IRL)
Alken European Opportunities € 192.52 - 4.65 0.00 Heartwood Caut Multi Asset B Acc 137.57 - 1.18 0.00
Global Liquidity USD $ 1.00 - 0.00 0.49 5 Kensington Church St, London W8 4LD 020 7368 4220 Recovery Fund Limited 'I' Participating Shares 9180.21 9272.94 51.52 1.45 Mirabaud Asset Management (LUX)

Alken European Opportunities £ 117.52 - 3.22 0.00

FCA Recognised Invesco Global Asset Management Ltd (IRL) www.mirabaud.com, marketing@mirabaud.com
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200 Strategic Corporate Bond Fund 131.06 136.52 -0.15 3.09 Regulated
Ennismore European Smlr Cos NAV £ 104.02 - 0.38 0.00
Alken Absolute Return € 138.14 - 2.32 0.00 FCA Recognised
Barclays Investment Funds (CI) Ltd (JER) UK Select 1417.71 1476.78 9.73 1.00
Mir. Conv. Bds Eur A EUR € 131.95 - 0.59 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Ennismore European Smlr Cos NAV € 136.37 - 0.05 0.00 Invesco Stlg Bd A QD F £ 2.57 - 0.00 3.35
Alken Absolute Return £ 112.21 - 1.89 0.00 Mir. Conv. Bds Glb A USD $ 109.16 - 0.70 0.00
FCA Recognised
Invesco Asian Equity A $ 5.68 - 0.05 0.58
Alken Small Cap € 176.73 - 2.58 0.00 Bond Funds Mir. - Eq Asia ex Jap A $ 158.74 - 0.60 0.00
Crèdit Andorrà Asset Management (LUX) Ennismore European Smlr Cos Hedge Fd MFS Investment Funds (LUX)
Sterling Bond F £ 0.46 - 0.00 3.28 www.creditandorra.com Invesco ASEAN Equity A $ 85.23 - 0.21 0.30 FCA Recognised
Other International Funds Mir. - Eq Glb Emrg Mkt A USD $ 80.26 - 0.76 0.00
FCA Recognised Blend.Research Gb.Eq.Fd. € 96.98 - 2.92 -
Hermes Investment Funds Plc (IRL) Invesco Bond A $ 26.68 - 0.00 1.99
Amundi Funds (LUX) NAV € 493.94 - -2.06 0.00 Mir. - Eq Global Focus A USD $ 94.78 - 2.39 0.00
Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Blend.Research Gb.Eq.Fd. £ 99.39 - 3.31 -
Baring International Fd Mgrs (Ireland) (IRL)
FCA Recognised
Invesco Continental Eurp Small Cap Eqty A $ 185.32 - 1.55 0.00
www.amundi-funds.com Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00 Mir. -Eq Spain A € 23.47 - 0.61 0.00
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004
FCA Recognised Hermes Abs Return Credit Fund Class F Acc £ £ 1.07 1.07 0.02 - Invesco Emerging Markets Equity A $ 32.35 - 0.54 0.00 Blend.Research U.S.Core Eq.Fd. ¥ 9730.00 - 386.00 -
FCA Recognised Equinox Fund Mgmt (Guernsey) Limited (GSY) Mir. - Eq Swiss Sm/Mid A SFr 324.99 - 5.56 0.00
Crediinvest SICAV Fixed Income Eur € 10.46 - 0.02 0.00 Regulated
Bd. Euro Corporate AE Class - R - EUR € 18.41 - 0.07 0.00 Invesco Emerging Markets Bond A $ 20.20 - 0.10 4.72 Blend.Research Gb.Eq.Fd. $ 92.63 - 1.80 -
ASEAN Frontiers A GBP Inc £ 111.25 - 0.54 0.57 Hermes Abs Return Credit Fund Class R Acc € € 2.00 2.00 0.02 -
Crediinvest SICAV Fixed Income Usd $ 10.33 - 0.01 0.00 Mir.- EqEurope ExUK Sm&Mid £ 105.88 - 2.00 -
Equinox Russian Opportunities Fund Limited $ 119.68 - 0.92 0.00
Bd. Global AU Class - R - USD $ 25.14 - -0.07 0.00 Invesco Continental European Equity A € 7.88 - -0.01 0.22 Em.Mk.Eq.Fund Euro € 103.24 - 4.16 0.00
Asia Growth A GBP Inc H £ 45.04 - 0.04 0.00 Hermes Active UK Inflation Fund Class F Acc £ 1.32 1.32 -0.01 0.00
Crediinvest SICAV Spanish Value € 227.68 - 1.83 0.00 Mir. - Glb High Yield Bds A $ 105.49 - 0.30 -
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Invesco Gilt A £ 15.34 - -0.04 1.33 Em.Mk.Eq.Fund Sterling £ 92.60 - 4.02 0.00
Australia A GBP Inc £ 68.84 - 0.70 1.95 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.53 1.53 0.02 0.00
Crediinvest SICAV International Value € 196.45 - 4.05 0.00 Euronova Asset Management UK LLP (CYM) Mir. - Glb Eq High Income A USD $ 93.93 - 1.56 0.00
Eq. Emerging World AU Class - R - USD $ 74.81 - 1.95 0.00 Invesco Global Small Cap Equity A NAV $ 109.90 - 1.84 0.00 Em.Mk.Eq.Fd.US Dollar $ 85.31 - 2.53 0.00
Baring China Bond Fund $ 9.62 - -0.01 0.00 Regulated Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.19 3.19 0.04 0.00
Crediinvest SICAV Big Cap Value € 14.33 - 0.14 0.00 Mir. - Glb Inv Grade Bds A € 100.24 - 0.35 -
Eq. Greater China AU Class - R - USD $ 499.40 - 12.32 0.00 Smaller Cos Cls One Shares (Est) € 34.02 - 0.33 0.00 Invesco Global High Income A NAV $ 11.55 - 0.03 6.17 Gb.Conc.Eq.Fd.Euro € 270.80 - 9.92 0.00
Baring Emerging Markets Corporate Debt Fund $ 9.13 - 0.00 0.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.14 1.14 0.02 0.00
Crediinvest SICAV US American Value $ 17.07 - 0.44 0.00 Mir. - Glb Strat. Bd A USD $ 103.02 - 0.26 0.00
Eq. Latin America AU Class - R - USD $ 291.83 - 13.36 0.00 Smaller Cos Cls Two Shares (Est) € 23.85 - 0.20 0.00 Invesco Gbl R/Est Secs A GBP F F £ 7.89 - 0.08 0.90 Gb.Conc.Eq.Fd.Sterl.UK T £ 172.84 - 6.88 0.00
Baring European Opportunities Fund Class A EUR Acc € 12.93 - 0.19 0.00 Hermes Global Emerging Markets Fund Class R Acc € 2.77 2.77 0.05 0.00
Crediinvest SICAV Sustainability € 14.21 - 0.04 0.00 Mir. - US Shrt Term Credit Fd $ 99.28 - 0.11 -
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.33 - 0.03 0.00 Smaller Cos Cls Three Shares (Est) € 11.86 - 0.13 0.00 Invesco Global Health Care A $ 113.01 - 2.01 0.00 Gb.Conc.Eq.Fd.Sterling £ 261.56 - 10.42 0.00
Baring Global Mining Fund - Class A GBP Inc £ 3.29 - 0.06 0.71 Hermes Global Equity Fund Class F Acc £ 1.49 1.49 0.04 0.00

Dynamic Emerging Markets A GBP Acc F £ 8.47 - 0.09 0.00 Smaller Cos Cls Four Shares (Est) € 15.43 - 0.16 0.00 Hermes Global Equity Fund Class R Acc € 3.74 3.74 0.09 0.00 Invesco Global Select Equity A $ 11.72 - 0.14 0.00 Gb.Conc.Eq.Fd.US $ 185.52 - 4.83 0.00
Daiwa SB Investments (UK) Ltd (LUX) MW Japan Fund Plc (IRL)
The Antares European Fund Limited Gb.Eq.Hdg Fd.Euro IRE T € 175.00 - 5.19 0.00 FCA Recognised
Asset Management
Eastern Europe A GBP Inc £ 39.88 - 0.41 1.85 5 King William Street, London EC4N 7DA Hermes Global ESG Equity Fund Class F Acc £ 1.15 1.15 0.03 0.00 Invesco Jap Eqty Core A $ 1.74 - 0.03 0.00
Other International

Asset Management Asset Management

www.daiwasbi.co.uk 0207 597 7000 MW Japan Fund PLC A $ 24.01 - 0.23 -
Emerging Mkt Debt LC A GBP Hedged Inc £ 6.84 - 0.02 6.76 Hermes Global High Yield Bond Fund Class F Acc £ 1.07 1.07 0.00 0.00 Invesco Japanese Equity A $ 18.38 - 0.41 0.00 Gb.Eq.Euro Hdg Fd. € 247.96 - 7.36 0.00
AEF Ltd Usd (Est) $ 634.92 - 11.11 - Regulated
MW Japan Fund PLC B $ 24.19 - 0.23 -
Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00 Hermes Global High Yield Bond Fund Class R Acc € 2.67 2.67 0.01 0.00 Invesco Korean Equity A $ 34.91 - 0.20 0.00 Gb.Eq.Fund Euro € 271.93 - 9.44 0.00
AEF Ltd Eur (Est) € 636.55 - 11.04 0.00 DSBI Japan Equity Fundamental Active I JPY ¥ 11894.10 11894.10 294.17 0.00
MW Japan Fund PLC C $ 93.15 - 1.18 -
Glb Emerging Markets A GBP Inc H £ 18.00 - 0.21 0.00 Hermes Global Small Cap Fund Class F Acc £ £ 0.98 0.98 0.03 - Invesco PRC Equity A $ 44.13 - -0.11 0.00 Gb.Eq. Fd Euro IRE T € 172.08 - 5.97 0.00
DSBI Japan Equity Fundamental Active I GBP £ 117.45 117.45 2.86 0.00
Glb Resources A GBP Inc H £ 10.14 - 0.17 0.40 Hermes Global Small Cap Fund Class R Acc € € 1.84 1.84 0.05 - Invesco Pacific Equity A $ 43.26 - 0.30 0.08 Gb.Eq.Fd.Sterling UK T £ 209.89 - 7.96 0.00
Arisaig Partners DSBI Japan Equity Fundamental Active A EUR € 112.65 118.28 2.72 0.00
Other International Funds Eurobank Fund Management Company (Luxembourg) S.A. Morant Wright Funds (Ireland) PLC (IRL)
High Yield Bond A GBP Hedged Inc H £ 5.95 - -0.08 7.30 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.97 0.97 0.00 0.00 Invesco Global Technology A $ 14.25 - 0.38 0.00 Gb.Eq.Fd.US Dollar $ 294.12 - 7.09 0.00
FCA Recognised
Regulated
Arisaig Africa Consumer Fund Limited $ 12.91 - 0.05 0.00 Gb.Eq.Fund Sterling £ 207.41 - 7.87 0.00
Hong Kong China A GBP Inc £ 534.06 - 1.54 0.65 DAVIS Funds SICAV (LUX) Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.01 1.01 0.00 0.00 Invesco UK Eqty A £ 7.38 - -0.06 1.48 Morant Wright Fuji Yield EUR Dist Hedged € 10.42 - 0.10 2.25
(LF) Absolute Return € 1.31 - 0.00 0.00
Arisaig Asia Consumer Fund Limited $ 58.05 - 0.79 0.00 Regulated
India Fund - Class A GBP Inc £ 14.26 - 0.43 0.00 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.29 1.29 0.02 0.00 Gb.Val.Ex-Jap.Fd.USD $ 112.58 - 2.51 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 10.79 - 0.10 0.00
(LF) Eq Emerging Europe € 0.66 - 0.01 0.00
Arisaig Global Emerging Markets Consumer UCITS € 11.23 - 0.32 0.00 Davis Value A $ 36.80 - 0.69 0.00
Latin America A USD Inc H $ 23.95 - 0.28 0.26 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.25 1.25 0.01 1.35 Invest AD Gb.Val.Ex-Japan Fd.Yen ¥ 13402.00 - 555.00 0.00 Morant Wright Fuji Yield GBP Dist Hedged £ 10.49 - 0.10 0.87
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.93 - 0.34 0.00 Davis Global A $ 26.09 - 0.57 0.00 Client services: +971 2 692 6101 clientservices@InvestAD.com
MENA A GBP Inc F * £ 11.62 - 0.35 0.70 Hermes Sourcecap EU Alpha Fund Class R Acc € 2.99 2.99 0.04 0.00 Gb.Val.Fd. Euro € 129.47 - 4.51 0.00 Morant Wright Fuji Yield USD Acc Hedged $ 10.51 - 0.09 0.00
(LF) Eq Mena Fund € 12.15 - 0.33 0.00 Other International Funds
Arisaig Latin America Consumer Fund $ 18.98 - 0.38 0.00
Hermes Sourcecap EX UK Fund Class F Acc £ 1.36 1.36 0.02 0.00 Invest AD - Iraq Opportunity Fund $ 54.81 - -1.08 0.00 Gb.Val.Fd.Sterling £ 120.28 - 4.57 0.00 Morant Wright Fuji Yield USD Dist Hedged $ 10.54 - 0.09 2.32
(LF) Greek Government Bond € 16.81 - 0.14 -
Baring International Fd Mgrs (Ireland) (IRL)
(LF) Greek Corporate Bond € 11.58 - 0.01 - Hermes Sourcecap EX UK Fund Class R Acc € 3.07 3.07 0.05 0.00 Invest AD - Emerging Africa Fund $ 859.53 - 6.53 0.00 Gb.Val.Fd.USD $ 100.98 - 2.44 0.00 Morant Wright Fuji Yield YEN Acc ¥ 1086.83 - 10.07 0.00
Artisan Partners Global Funds PLC (IRL) Regulated
Hermes UK Small & Mid Cap Fund Class F Acc £ 1.61 1.61 -0.01 0.00 Invest AD - GCC Focus Fund $ 1248.62 - -0.25 0.00 Low Volatility Gb.Eq.Fd.Euro € 103.28 - 3.43 - Morant Wright Fuji Yield B YEN Acc ¥ 959.17 - 8.91 -
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland China A-Share A GBP Inc £ 5.70 - 0.14 0.00 (LF) FOF Dynamic Fixed Inc € 11.63 - 0.01 0.00
Tel: 44 (0) 207 766 7130 Low Volatility Gb.Eq.Fd.Sterl £ 105.85 - 3.86 - Morant Wright Fuji Yield YEN Dist ¥ 1064.29 - 9.87 2.31
(LF) FOF Real Estate € 16.00 - 0.15 0.00 Hermes UK Small & Mid Cap Fund Class R Acc € 4.64 4.64 0.00 0.00
FCA Recognised
Artisan Partners Global Funds plc Hermes US All Cap Equity Class F Stg £ Acc £ 0.99 0.99 0.03 - Low Volatility Gb.Eq.Fd.USD $ 98.65 - 2.23 - Morant Wright Sakura Fund Sterling Acc Hedged £ 13.36 - 0.18 0.00
Barings (Luxembourg) (LUX)
Dodge & Cox Worldwide Funds (IRL)
Artisan Emerging Markets I USD Acc $ 6.25 - 0.16 0.00 FCA Recognised 6 Duke Street,St.James,London SW1Y 6BN Hermes US All Cap Equity Class R € Acc € 1.86 1.86 0.07 - Low Volatility Gb.Eq.Fd.Yen ¥ 9316.00 - 389.00 - Morant Wright Sakura Fund Euro Acc Hedged € 13.35 - 0.18 0.00
FIL Fund Management (LUX)
Russia A GBP Inc F £ 24.70 - 0.96 0.00 www.dodgeandcox.worldwide.com 020 3713 7664 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Artisan Global Equity Fund Class I USD Acc $ 13.22 - 0.26 0.00 Hermes US SMID Equity Fund Class F Acc £ 1.58 1.58 0.05 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1367.70 - 18.05 0.00
FCA Recognised Phone: 800 22 089, 800 22 088
Artisan Global Opportunities I USD Acc $ 11.38 - 0.18 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund Regulated Hermes US SMID Equity Fund Class R Acc € 3.25 3.25 0.11 0.00
MFS Meridian Funds SICAV (LUX) Morant Wright Sakura Fund Dollar Acc Hedged $ 13.30 - 0.18 0.00
BlackRock (JER) Regulated
EUR Accumulating Class € 11.54 - 0.14 0.00 China Consumer A-GBP £ 13.64 - 0.41 0.00
Artisan Global Value Fund Class I USD Acc $ 14.73 - 0.30 0.00
Regulated GAM Absolute Return A1 € 19.85 - 0.08 0.00
Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 13.21 - 0.18 0.00
EUR Accumulating Class (H) € 8.93 - 0.01 0.00 China Focus A-GBP £ 3.93 - 0.15 0.77 funds@gam.com, www.jbfundnet.com
Artisan US Value Equity Fund Class I USD Acc $ 9.76 - 0.32 0.00 BlackRock UK Property £ 41.71 - 0.04 2.94 INDIA VALUE INVESTMENTS LIMITED (INVIL) Regulated Asia ex-Japan A1 $ 21.14 - 0.53 0.00
EUR Distributing Class € 10.93 - 0.13 3.66 Global Financial Services A-GBP £ 0.42 - 0.01 0.12 www.invil.mu
Blackrock UK Long Lease £ 1079.94 - -0.01 0.00 Ms EF Special Val. EUR/A € 132.98 - 2.99 1.17
Other International Funds Bond A1 $ 10.32 - 0.04 0.00
Ashmore Sicav (LUX) EUR Distributing Class (H) € 8.45 - 0.01 3.76 Global Health Care A-GBP £ 0.55 - 0.01 0.00
BLK Intl Gold & General $ 3.95 4.17 0.12 0.00 NAV £ 8.05 - 0.04 0.00 Strategy Balanced-CHF/B SFr 146.29 - 1.93 0.00
China Equity Fd A1 $ 9.28 - -0.01 0.00
2 rue Albert Borschette L-1246 Luxembourg
GBP Distributing Class £ 10.11 - 0.09 3.50 Global Industrials A-GBP £ 0.61 - 0.02 0.00
FCA Recognised Strategy Balanced-EUR € 150.61 - 2.08 0.00
Continental European Eqty A1 € 16.71 - 0.47 0.00
Ashmore SICAV Emerging Market Debt Fund $ 87.86 - 0.22 9.10 BONHOTE GBP Distributing Class (H) £ 8.54 - 0.02 3.76 Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - 0.00 0.56
Intercapital Asset Management Ltd (HRV) Strategy Balanced-USD/B $ 125.73 - 1.46 0.00
Emer Mkts Debt Lo Curr Fd A1 $ 10.61 - 0.13 0.00
Other International Funds Global Real Asset Securities £ 1.31 - 0.04 0.00 Masarykova ul. 1, 10000, Zagreb, Croatia
Ashmore SICAV Emerging Market Frontier Equity Fund $ 132.40 - 1.62 0.76 USD Accumulating Class $ 9.01 - 0.01 0.00 Strategy Growth-CHF/B SFr 89.36 - 1.66 0.00 Morgan Stanley Investment Funds (LUX)
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6607.00 - -42.00 2.29 www.icam.hr, Tel; +385 1 4825 868 Emerging Markets Debt A1 $ 32.32 - 0.10 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Ashmore SICAV Emerging Market Total Return Fund $ 75.24 - 0.44 6.57 Global Technology A-GBP £ 0.25 - 0.01 0.00 Other International Funds Strategy Growth-EUR € 111.42 - 2.07 0.00 www.morganstanleyinvestmentfunds.com
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9749.00 - -171.00 0.93 Emerging Markets Eq.A1 $ 9.43 - 0.30 0.00
USD Accumulating Share Class $ 14.29 - 0.40 0.00 Global Telecomms A-GBP £ 0.29 - 0.01 1.13 FCA Recognised
Ashmore SICAV Global Small Cap Equity Fund $ 115.20 - 2.83 0.00 Capital One Bond Fund (Ex-YU) HRK 204.39 - 0.17 -
Strategy Inc-CHF/B SFr 117.81 - 0.98 0.00
European Concentrated A1 € 16.36 - 0.45 0.00
GBP Accumulating Share Class £ 16.50 - 0.59 0.00 US Advantage A F $ 54.03 - 0.04 0.00
Ashmore SICAV Local Currency Fund $ 79.75 - 0.46 0.00 India Focus A-GBP £ 4.32 - 0.17 0.00 Capital Two Equity Fund (Ex-YU) HRK 88.80 - 0.28 -
Strategy Inc-EUR/B € 157.39 - 1.36 0.00
Braemar Group PCC Limited (GSY) European Core Eq A1 € 29.83 - 0.83 0.00
GBP Distributing Share class £ 12.00 - 0.42 1.03 Asian Equity A F $ 37.54 - 0.77 0.00
EM Mkts Corp.Debt USD F $ 81.25 - 0.00 9.89 Regulated Latin America A-GBP £ 1.29 - 0.05 0.67
Strategy Inc-USD/B $ 144.15 - 1.06 0.00
European Res.A1 € 30.73 - 0.87 0.00
EUR Accumulating Share Class € 19.82 - 0.76 0.00 Intrinsic Value Investors (IVI) LLP (IRL) Asian Property A F $ 16.33 - 0.54 0.00
EM Mkts Loc.Ccy Bd USD F $ 74.09 - 0.99 3.75 UK Agricultural Class A £ 1.25 - -0.02 0.00 Sterling Cash Fund A-ACC-GBP £ 1.00 - 0.00 0.00
Dodge & Cox Worldwide Funds plc-International Stock Fund 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 European Smaller Companies A1 € 49.73 - 1.13 0.00
Asian Property AX F £ 10.78 - -0.01 0.54
UK Agricultural Class B £ 1.37 - -0.02 0.00 FCA Recognised
USD Accumulating Share Class $ 12.02 - 0.29 0.00 European Value A1 € 35.18 - 1.03 0.00
Findlay Park Funds Plc (IRL) IVI European Fund EUR € 16.89 - 0.28 0.00 Diversified Alpha Plus A F € 29.51 - 0.00 0.00
Student Accom Class B £ 0.55 - -0.17 0.00
EUR Accumulating Share Class € 13.06 - 0.44 0.00 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Global Conc.A1 $ 34.56 - 0.94 0.00
IVI European Fund GBP £ 17.36 - 0.35 0.68 Emerg Europ, Mid-East & Africa Eq A F € 60.67 - 1.43 0.00
FCA Recognised
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Global Credit Fund $ 10.16 - 0.00 0.00
CG Asset Management Limited (IRL) American Fund USD Class $ 76.81 - 1.90 0.00 Emerging Markets Debt A F $ 73.11 - 0.26 0.00
USD Accumulating Share Class $ 16.60 - 0.47 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Global Energy Fund A1 $ 11.63 - 0.27 0.00
American Fund GBP Hedged £ 41.85 - 1.04 0.00 Emerging Markets Domestic Debt AX F £ 10.50 - 0.16 5.35
00 353 1 434 5098 GBP Accumulating Share Class £ 18.12 - 0.64 0.00 Kames Capital VCIC (IRL)
Global Equity A1 $ 42.57 - 1.06 0.00
FCA Recognised American Fund GBP Unhedged £ 53.75 - 1.60 - 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Emerging Markets Equity A F $ 30.23 - 0.61 0.00
Aspect Capital Ltd (UK) GBP Distributing Share Class £ 11.52 - 0.40 0.63
Capital Gearing Portfolio Fund Plc £ 27341.94 27341.94 162.21 0.61 FCA Recognised Global Equity A1 € 24.89 - 0.72 0.00
Other International Funds Latin American Fund USD Class $ 10.07 - 0.19 0.00 Euro Bond A F € 15.87 - 0.05 0.00
CG Portfolio Fund Plc EUR Accumulating Share Class € 19.88 - 0.76 0.00 Absolute Return Bond B GBP Acc 1079.54 - 0.28 -
Aspect Diversified USD $ 461.74 - 14.50 0.00 Global High Yield Fund $ 23.37 - 0.07 0.00
Latin American Fund GBP Unhedged £ 7.11 - 0.09 - Euro Corporate Bond AX F £ 22.32 - 0.03 1.55
Real Return Cls A £ 177.33 177.33 3.41 1.66 Eq Market Neutral B Acc 1025.37 - 1.09 -
Aspect Diversified EUR € 277.27 - 8.62 - Global High Yield Fund € 15.70 - 0.11 0.00
Invesco (LUX) Euro Strategic Bond A F € 43.50 - 0.15 0.00
Dollar Fund Cls D £ 138.98 138.98 2.92 1.54 Eq Market Neutral Plus B Acc 1042.33 - 2.22 -
Aspect Diversified GBP £ 142.14 - 4.57 0.00 Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Global Multi-Asset A1 $ 14.53 - 0.20 0.00
Foord Asset Management FCA Recognised
European Currencies High Yield Bd A F € 21.06 - 0.04 0.00
Capital Value Fund Cls V £ 132.55 132.55 0.86 0.26 High Yield Global Bond A GBP Inc 504.74 - -3.28 5.47
Aspect Diversified CHF SFr 132.45 - 4.10 0.00 Other International Funds Global Res.A1 $ 23.98 - 0.64 0.00
Invesco Management SA European Equity Alpha A F € 39.68 - 0.51 0.00
Foord International Trust $ 32.94 - 0.39 0.00 High Yield Global Bond B GBP Inc 1049.37 - -6.76 5.47
Aspect Diversified Trends USD $ 132.01 - -0.38 0.00 Invesco Active Multi-Sector Credit Fund A € 2.83 - 0.01 0.00 Global Total Return A1 € 17.44 - 0.31 0.00
European Property A F € 33.49 - 0.50 0.00
Cedar Rock Capital Limited (IRL) Foord Global Equity Fund_Class B $ 11.49 - 0.22 0.00 Investment Grade Global Bd A GBP Inc 549.21 - -2.48 2.49
Aspect Diversified Trends EUR € 132.10 - -0.38 0.00 Invesco Asia Balanced A dist $ 13.46 - 0.05 3.95 Inflation-Adjusted Bond A1 $ 13.94 - 0.06 0.00
Regulated Eurozone Equity Alpha A F € 10.67 - 0.12 0.00
Dragon Capital Group Kames Global Equity Income B GBP Acc 1190.75 - 21.23 -
Japan Equity A1 $ 9.86 - 0.31 0.00
Aspect Diversified Trends GBP £ 137.28 - -0.39 0.00 Cedar Rock Capital Fd Plc $ 345.33 - -24.08 0.00 Invesco Asia Consumer Demand Fund A income $ 11.51 - 0.04 0.26
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Global Bond A F $ 37.88 - -0.09 0.00
Fund information, dealing and administration: funds@dragoncapital.com Franklin Templeton International Services Sarl (IRL) Kames Global Equity Income B GBP Inc 1128.28 - 13.44 -
Cedar Rock Capital Fd Plc £ 376.67 - -16.82 0.00 Invesco Asia Infrastructure (A) $ 11.45 - 0.11 0.85 Latin American Equity Fd A1 $ 10.40 - 0.46 0.00
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Global Brands A F $ 96.65 - 1.35 0.00
Other International Funds Strategic Global Bond A GBP Inc 1078.97 - -0.57 0.77
Atlantas Sicav (LUX) Cedar Rock Capital Fd Plc € 331.66 - -22.35 0.00 Other International Funds Invesco Asia Opportunities Equity A $ 95.54 - 0.46 0.00 Limited Maturity A1 $ 14.00 - 0.01 0.00
Global Convertible Bond A F $ 40.00 - 0.11 0.00
Regulated Vietnam Enterprise Inv. (VEIL) NAV $ 3.29 - -0.15 0.00 Franklin Emerging Market Debt Opportunities Fund Plc Strategic Global Bond B GBP Inc 612.03 - -1.04 1.27
Invesco Balanced Risk Allocation Fund A € 14.37 - 0.03 0.00 Prudent Wealth Fd A1 $ 14.66 - 0.15 0.00
American Dynamic $ 3107.96 - 16.51 0.00 Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 Global Property A F $ 25.93 - 0.24 0.00
Franklin Emg Mkts Debt Opp CHFSFr 16.44 - -0.39 8.50
Charles Schwab Worldwide Funds Plc (IRL) Invesco Emerging Europe Equity Fund A $ 7.14 - 0.10 0.00 Research Bond A1 $ 16.59 - 0.05 0.00
American One $ 2945.57 - 20.68 0.00 Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00 Indian Equity A F $ 32.20 - 0.90 0.00
Regulated Franklin Emg Mkts Debt Opp EUR € 11.55 - -0.30 7.58
Invesco Emerging Local Currencies Debt A Inc $ 6.49 - 0.01 7.14 UK Equity A1 £ 7.81 - 0.21 0.00
Bond Global € 1394.59 - -3.33 0.00 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Latin American Equity A F $ 33.40 - 0.80 0.00
Franklin Emg Mkts Debt Opp GBP £ 9.76 - -0.19 7.26
Invesco Emerging Mkt Quant.Eq. A $ 8.35 - 0.08 0.00 US Conc.Growth A1 $ 14.73 - 0.42 0.00
Eurocroissance € 833.81 - 23.41 0.00 Short Maturity Euro Bond A F € 20.34 - 0.01 0.00
Franklin Emg Mkts Debt Opp SGD S$ 21.34 - -0.51 6.48
Tuesday 2 February 2016 FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

US Dollar Liquidity A F $ 13.03 - 0.00 0.00 OasisCresGl LowBal D ($) Dist $ 11.26 - 0.11 0.00 Pictet-Clean Energy-I USD F $ 71.68 - 1.93 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.93 - 0.20 0.00 Renminbi Bond Fund GBP Cls B £ 113.13 - 1.20 3.43 Yuki Japan Value Select ¥ 12113.00 - 410.00 0.00

US Growth A F $ 61.19 - 0.13 0.00 OasisCresGl Med Eq Bal A ($) Dist $ 11.41 - 0.15 0.51 Pictet-Digital Communication-I USD F $ 242.52 - 4.17 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 11.47 - 0.31 0.00 Renminbi Bond Fund SGD Cls B S$ 112.76 - 1.20 3.35 Unicapital Investments (LUX) YMR Umbrella Fund
Regulated
YMR N Growth ¥ 16490.00 - -4.00 0.00
US Growth AH F € 42.36 - 0.09 0.00 Oasis Crescent Gbl Property Eqty $ 9.02 - 0.11 2.38 Pictet-Eastern Europe-I EUR F € 247.83 - 6.70 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.32 - 0.04 0.00 Renminbi Bond Fund USD Cls B $ 112.91 - 1.20 3.20
Investments III € 5.03 - -22.38 -
Yuki Asia Umbrella Fund
US Growth AX F £ 42.93 - 0.37 0.00 Pictet-Em Lcl Ccy Dbt-I USD F $ 151.46 - 1.54 0.00 StocksPLUS{TM} - Inst Acc $ 21.78 - 0.55 0.00 Renminbi Bond Fund YEN Cls B ¥ 12808.03 - 135.14 0.00
Investments IV - European Private Eq. € 247.75 260.13 -44.58 - Yuki Japan Rebounding Growth Fund JPY Class ¥ 22815.00 - 714.00 0.00
US Property A F $ 65.31 - -0.92 0.00 Pictet-Emerging Markets-I USD F $ 425.10 - 3.08 0.00 Total Return Bond - Inst Acc $ 27.28 - 0.10 0.00 Renminbi Bond Fund USD Cls A $ 155.41 - 1.65 3.47
Investments IV - Global Private Eq. € 366.42 384.74 -49.81 - Yuki Japan Rebounding Growth Fund USD Hedged Class $ 901.01 - 27.88 -
Pictet-Emerging Markets Index-I USD F $ 192.92 - 5.20 0.00 UK Corporate Bond - Inst Acc £ 17.27 - 0.11 0.00 S W Mitchell Capital LLP (CYM) Renminbi Bond Fund GBP Cls A £ 150.53 - 1.60 3.71
Regulated
Morgens Waterfall Vintiadis.co Inc Pictet-Emerging Corporate Bonds I USD $ 104.85 - 0.24 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.22 - 0.18 0.00 Renminbi Bond Fund SGD Cls A S$ 149.10 - 1.59 3.62
S W Mitchell European Fund Class A EUR € 328.95 - -9.46 - Value Partners Hong Kong Limited (IRL) Zadig Gestion (Memnon Fund) (LUX)
Other International Funds
Pictet-Emerging Markets High Dividend I USD $ 84.63 - 1.05 0.00 UK Low Duration - Inst Acc £ 14.06 - 0.02 0.00 Renminbi Bond Fund YEN Cls A ¥ 18966.00 - 199.00 0.00 www.valuepartners.net, fis@vp.com.hk FCA Recognised
Phaeton Intl (BVI) Ltd (Est) $ 376.84 - 7.44 0.00 S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 - Regulated
Odey Asset Management LLP (CYM) Pictet-Emerging Markets Sust Eq I USD $ 78.24 - 1.94 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00 Renminbi Bond Fund EUR Cls A € 102.08 - 1.06 3.63 Memnon European Fund I GBP £ 113.02 - 2.64 0.00
The Charlemagne Fund EUR € 315.89 - -12.01 - Value Partners Asia ex-Japan Equity Fund $ 7.90 - 0.18 -
Regulated
Pictet-Environmental Megatrend Sel I EUR € 152.76 - 5.12 0.00 UK Sterling Long Average Duration - Inst Acc £ 22.52 - 0.31 0.00
OEI Mac Inc GBP A £ 409.98 - 51.79 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 9.64 - -0.03 0.00
Zebedee Capital Partners LLP (CYM)
Pictet-EUR Bonds-I F € 561.69 - 2.50 0.00 Unconstrained Bond - Inst Acc $ 11.70 - 0.00 0.00
OEI Mac Inc GBP B £ 236.17 - 34.38 0.00 S W Mitchell Capital LLP (IRL) Value Partners Classic Equity Fund CHF HedgedSFr 10.06 - -0.04 0.00 Regulated
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.24 - 0.60 0.00 US High Yield Bond Fund Inst Acc $ 26.67 - 0.10 0.00 Regulated
Value Partners Classic Equity Fund EUR Hedged € 10.17 - -0.04 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
OEI MAC Inc USD $ 2188.18 - 273.75 0.00
SWMC European Fund B EUR € 14101.72 - 367.58 0.00
Pictet-EUR Corporate Bonds-I F € 199.77 - 0.68 0.00 Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Odey European Inc EUR € 943.66 - 106.51 0.00 Value Partners Classic Equity Fund GBP Hedged £ 10.41 - -0.04 0.00
SWMC UK Fund B £ 10932.79 - 103.19 0.00
Pictet-EUR Government Bonds I EUR € 160.81 - 0.86 0.00 Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Natixis International Funds (Lux) I SICAV (LUX) Odey European Inc GBP A £ 363.95 - 41.44 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 11.43 - 0.28 0.00
SWMC Small Cap European Fund B EUR € 12660.17 - 77.13 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Pictet-EUR High Yield-I F € 236.69 - 0.42 0.00 E.I. Sturdza Strategic Management Limited (GSY) Value Partners Classic Equity USD Hedged $ 11.84 - -0.05 0.00
Odey European Inc GBP B £ 206.55 - 23.52 0.00 Regulated
FCA Recognised SWMC Emerging European Fund B EUR € 8538.89 - 224.90 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 137.13 - 0.09 0.00
Harris Global Equity R/A (USD) $ 228.57 228.57 4.66 0.00 Odey European Inc USD $ 436.39 - 49.24 0.00 Nippon Growth Fund Limited ¥ 88573.00 - 4769.00 0.00 Value Partners Greater China Equity Fund $ 7.46 - 0.19 -

Giano Capital EUR Inc € 4652.16 - 195.57 0.00

Pictet-EUR Short Term HY I EUR € 118.70 - 0.05 0.00
Strat Evarich Japan Fd Ltd JPY ¥ 82538.00 - -704.00 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 8.94 - 0.18 -
Data Provided by
Harris US Equity Fund R/A (USD) $ 189.49 189.49 5.76 0.00
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.92 - 0.00 0.00 Platinum Capital Management Ltd Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.40 - 0.19 -
Harris Concentrated US Equity R/A (USD) $ 143.09 143.09 4.61 0.00 Strat Evarich Japan Fd Ltd USD $ 815.91 - -7.01 0.00
Other International Funds
Pictet-Euroland Index IS EUR € 123.42 - 2.74 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 108.36 108.36 0.12 - Odey Asset Management LLP (IRL)
Platinum All Star Fund - A $ 116.86 - - -
Value Partners Health Care Fund USD Class A Unhedged $ 8.39 - 0.19 -
FCA Recognised Pictet-Europe Index-I EUR F € 159.19 - 3.44 0.00
Platinum Global Dividend Fund - A $ 54.29 - - - E.I. Sturdza Funds PLC (IRL)
Odey Pan European EUR R € 324.33 - 6.30 0.00 Regulated
Pictet-European Equity Selection-I EUR F € 590.31 - 11.06 0.00 Veritas Asset Management LLP (IRL)
Natixis International Funds (Dublin) I plc (IRL) Platinum Maverick Enhanced Fund Limited $ 93.55 - - 0.00
Odey Absolute Return Focus Fund $ 100.00 - - - RobecoSAM (LUX) Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 984.70 - 26.75 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Pictet-European Sust Eq-I EUR F € 235.51 - 4.90 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/
Regulated Odey Allegra European EUR O € 257.39 - 6.25 0.00
Pictet-Global Bds Fundamental I USD $ 116.19 - -0.43 0.00
Regulated Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1160.57 - 31.56 0.00
Veritas Funds Plc
www.veritas-asset.com www.morningstar.co.uk
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.20 12.20 -0.03 1.26
Odey Allegra International EUR O € 169.10 - 3.51 0.00 RobecoSAM Sm.Energy/A £ 11.35 - 0.41 1.67 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 91246.00 - 2511.00 0.00 +353 1 635 6799 Data as shown is for information purposes only. No
Pictet-Global Bonds-I EUR € 167.67 - 1.09 0.00 FCA Recognised
Loomis Sayles High Income R/D (USD) $ 7.11 7.11 0.04 12.94 offer is made by Morningstar or this publication.
Odey Allegra Developed Markets USD I $ 115.70 - 1.11 0.00 RobecoSAM Sm.Energy/N € 11.28 - 0.37 0.00 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 76512.00 - 2105.00 0.00 Institutional
Pictet-Global Emerging Currencies-I USD F $ 94.70 - 0.23 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 11.22 11.22 0.06 5.96
Odey European Focus Fund € 17.37 - 0.31 0.51 RobecoSAM Sm.Materials/A £ 115.60 - 3.50 1.52 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00 Veritas Asian Fund A USD H $ 297.28 - 2.92 0.46

Asset Management
Pictet-Global Emerging Debt-I USD F $ 351.41 - 0.54 0.00

Asset Management
Odey Atlas Fund GBP I S £ 1.14 - 0.02 0.00 RobecoSAM Sm.Materials/N € 130.65 - 3.54 0.00 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 49592.00 - 1366.00 0.00 Veritas Asian Fund A GBP H £ 383.17 - 4.63 0.25
Pictet-Global Megatrend Selection-I USD F $ 205.38 - 4.40 0.00
Odey Giano European Fund EUR R € 120.01 - -0.38 0.00 Polar Capital Funds Plc (IRL) RobecoSAM Sm.Materials/Na € 90.17 - 2.44 - Strategic China Panda Fund USD $ 1969.13 - 31.91 0.00 Veritas Asian Fund A EUR H € 310.78 - 4.37 0.23
Pictet-Greater China-I USD F $ 393.74 - -0.48 0.00 Regulated
Odey Naver Fund EUR I € 127.22 - -0.06 0.00
Pictet-Health-I USD $ 245.95 - 4.27 0.00 Asian Financials I USD $ 257.18 257.18 0.93 1.28
RobecoSAM Gl.Small Cap Eq/A £ 75.59 - 2.98 1.34 Strategic China Panda Fund Hedged EURO € 1918.71 - 29.69 0.00 Veritas China Fund A USD $ 129.88 - 0.33 0.39
Guide to Data
Odey Odyssey USD I $ 131.86 - -0.35 0.00 RobecoSAM Gl.Small Cap Eq/N € 147.94 - 5.37 0.00 Strategic China Panda Fund Hedged Sterling £ 1945.65 - 30.66 0.00 Veritas China Fund A GBP £ 134.42 - 0.35 0.40
Pictet-High Dividend Sel I EUR F € 151.93 - 3.88 0.00 Biotechnology I USD $ 14.93 14.93 0.19 0.00
Odey Orion Fund EUR I € 117.14 - 0.09 0.00 RobecoSAM Sustainable Gl.Eq/B € 170.91 - 5.17 0.00 Strategic Euro Bond Accumulating Class CHFSFr 982.16 - 1.03 0.00 Veritas China Fund A EUR € 128.38 - 0.33 0.40 The fund prices quoted on these pages are supplied by
Pictet-India Index I USD $ 89.77 - 2.31 0.00 European Income Acc EUR € 10.91 10.91 0.23 0.00
New Capital Fund Management Ltd (IRL) the operator of the relevant fund. Details of funds
Odey Swan Fund EUR I € 100.44 - -0.93 0.00 RobecoSAM Sustainable Gl.Eq/N € 147.63 - 4.48 0.00 Strategic Euro Bond Institutional Class EUR € 1010.87 - 1.08 0.00 Veritas Global Equity Income Fund D USD $ 107.12 - 0.85 4.51 published on these pages, including prices, are for the
Leconfield House, Curzon Street, London, W1J 5JB Pictet-Indian Equities-I USD F $ 410.71 - 0.48 0.00 European Ex UK Inc EUR Acc € 9.34 9.34 0.20 -
purpose of information only and should only be used
FCA Recognised RobecoSAM S.HealthyLiv/B € 173.62 - 5.15 0.00
Odey European Absolute Return GBP S £ 99.58 - 0.28 0.00 Financial Opps I USD $ 10.82 - 0.18 2.08 Strategic Euro Bond Fund Accumulating Class Shares € 1132.96 - 1.21 0.00 Veritas Global Equity Income Fund D EUR € 190.97 - 2.33 4.43 as a guide. The Financial Times Limited makes no
New Capital UCITS Funds Pictet-Japan Index-I JPY F ¥ 15411.66 - 330.96 0.00 representation as to their accuracy or completeness
RobecoSAM S.HealthyLiv/N € 161.94 - 4.81 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1022.73 - 1.08 1.33 Veritas Global Equity Income Fund D GBP £ 145.78 - 1.46 4.27 and they should not be relied upon when making an
Asia Pac Bd USD Inst Inc $ 90.09 - -0.09 3.44 Pictet-Japanese Equities Opp-I JPY F ¥ 9245.84 - 258.43 0.00 GEM Growth I USD $ 7.71 - 0.20 0.00
investment decision.
Odey Wealth Management (CI) Ltd (IRL)
GEM Income I USD $ 8.62 - 0.25 0.00
RobecoSAM S.HealthyLiv/Na £ 107.76 - 3.55 - Strategic European Smaller Companies Fund EUR Class € 924.27 - 7.34 - Veritas Global Focus Fund D USD $ 24.27 - 0.46 0.71
Asia Pac Bd USD Ord Inc $ 92.05 - -0.10 2.70 www.odey.com/prices Pictet-Japanese Equity Selection-I JPY F ¥ 13675.51 - 408.43 0.00
The sale of interests in the funds listed on these pages
FCA Recognised RobecoSAM S.Water/A £ 167.23 - 5.54 1.23 Strategic Global Bond RMB Acc $ 1053.76 - 4.55 0.00 Veritas Global Focus Fund D EUR € 22.48 - 0.52 0.69 may, in certain jurisdictions, be restricted by law and
Asia Pac Eq EUR Ord Inc € 76.89 - 1.49 3.52 Pictet-LATAM Index I USD $ 44.90 - 1.96 0.00 Global Alpha I USD $ 11.84 11.84 0.22 0.00
the funds will not necessarily be available to persons
Odey Opportunity EUR I € 213.12 - 3.21 0.00 RobecoSAM S.Water/N € 157.93 - 4.72 0.00 Strategic Global Bond USD Acc $ 1051.83 - 2.60 0.00 Veritas Global Focus Fund D GBP £ 28.85 - 0.61 0.65
Asia Pac Eq GBP Ord Inc £ 79.49 - 1.57 4.14 Pictet-LATAM Lc Ccy Dbt-I USD F $ 103.73 - 1.39 0.00 Global Convertible I USD $ 10.82 10.82 0.01 0.00 in all jurisdictions in which the publication circulates.
Persons in any doubt should take appropriate
Global Insurance I GBP £ 4.15 - 0.14 0.00 Strategic US Momentum and Value Fund $ 708.76 - 19.06 0.00 Veritas Global Focus Fund A GBP £ 27.86 - 0.59 0.38 professional advice. Data collated by Morningstar. For
Asia Pac Eq USD Ord Inc $ 80.38 - 1.54 3.52 Pictet-Pacific Ex Japan Index-I USD F $ 301.15 - 3.77 0.00
Omnia Fund Ltd other queries contact reader.enquiries@ft.com +44
Global Technology I USD $ 21.23 - 0.52 0.00 Strategic US Momentum & Value Fund USD I Class $ 470.97 - 12.67 0.00 Veritas Global Focus Fund A EUR € 13.10 - 0.30 0.39
Asia Pac Eq USD Inst Acc $ 86.50 - 1.64 0.00 Pictet-Premium Brands-I EUR F € 145.44 - 3.99 0.00 (0)207 873 4211.
Other International Funds
Healthcare Blue Chip Fund I USD Acc $ 9.97 9.97 0.18 0.00 Strategic US Momentum and Value EUR Hedged Class EUR € 494.11 - 13.34 0.00 Veritas Global Focus Fund A USD $ 23.41 - 0.44 0.41
Asia Pac Eq USD Inst Inc $ 87.89 - 0.48 4.36 Estimated NAV $ 833.84 - -21.78 0.00 Pictet-Quality Global Equities I USD $ 130.74 - 2.73 0.00 The fund prices published in this edition along with
Strategic US Momentum and Value CHF Hedged Class CHFSFr 490.77 - 13.17 0.00 additional information are also available on the
Healthcare Opps I USD $ 34.70 - 0.61 0.00 Veritas Global Focus Fund C GBP £ 30.25 - 0.64 0.00
Dyn Europ Eq EUR Ord Inc € 163.48 - -2.49 0.73 Pictet-Russia Index I USD $ 45.18 - 1.33 0.00 Financial Times website, www.ft.com/funds. The
Veritas Global Focus Fund C EUR € 23.68 - 0.55 0.00 funds published on these pages are grouped together
Dyn Europ Eq GBP Ord Inc £ 173.28 - -2.64 1.11 Pictet-Russian Equities-I USD F $ 39.22 - 0.94 0.00 Income Opportunities B2 I GBP Acc £ 1.67 1.67 0.03 0.00 by fund management company.
Japan Alpha I JPY ¥ 192.07 192.07 6.67 0.00
Schroder Property Managers (Jersey) Ltd The Hartford International Funds (IRL) Veritas Global Focus Fund C USD $ 25.49 - 0.48 0.00
Dyn Europ Eq USD Ord Inc $ 163.24 - -2.48 0.73 Pictet-Security-I USD F $ 188.50 - 3.36 0.00 Regulated Prices are in pence unless otherwise indicated. The
Other International Funds
Veritas Global Equity Income Fund A GBP £ 139.66 - 1.40 4.28 change, if shown, is the change on the previously
China Equity EUR Ord Acc € 110.13 - -0.52 0.00 Pictet-Select-Callisto I EUR € 104.09 - 0.35 0.00 Japan I JPY ¥ 1918.66 - 32.35 1.08 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1704.99 - 21.95 0.00
Indirect Real Estate SIRE £ 134.51 140.66 1.17 2.78 quoted figure (not all funds update prices daily). Those
Veritas Global Equity Income Fund A EUR € 185.46 - 2.25 4.44 designated $ with no prefix refer to US dollars. Yield
China Equity GBP Ord Acc £ 114.53 - -0.44 0.00 Pictet-Small Cap Europe-I EUR F € 1065.13 - 19.38 0.00 North American I USD $ 16.54 16.54 0.41 0.00 UK Corporate Bond £ 1574.88 - -1.68 0.00 percentage figures (in Tuesday to Saturday papers)
UK Absolute Equity I GBP £ 12.50 12.50 -0.08 0.00 Veritas Global Equity Income Fund A USD $ 103.05 - 0.81 4.51 allow for buying expenses. Prices of certain older
China Equity USD Ord Acc $ 112.13 - -0.52 0.00 Optima Fund Management Pictet-ST.MoneyMkt-I € 140.44 - 0.00 0.00 SIA (SIA Funds AG) (LUX) Gilt £ 1620.95 - -2.72 0.00 insurance linked plans might be subject to capital
Other International Funds Regulated Veritas Global Equity Income Fund C GBP £ 167.91 - 1.68 - gains tax on sales.
China Equity USD Inst Acc $ 115.43 - -0.53 0.00 Pictet-ST.MoneyMkt JPY I USD ¥ 101509.46 - 3.87 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.30 - 0.03 0.00
Cuttyhunk Fund II Limited $ 1350.67 - 22.88 0.00 LTIF Classic € 310.07 - 10.22 0.00
Europ. Equity Fd EUR € 97.45 - -1.48 - Pictet-ST.MoneyMkt-ICHF SFr 124.10 - 0.00 0.00
Polar Capital LLP (CYM)
Global Eq (ex Japan) Class HJ4 ¥ 1.35 - 0.03 0.00
Veritas Global Equity Income Fund C EUR € 222.86 - 2.71 - Guide to pricing of Authorised Investment Funds:
Regulated LTIF Natural Resources € 66.72 - 2.24 0.00 (compiled with the assistance of the IMA. The
JENOP Global Healthcare Fund Ltd $ 14.76 - -0.27 0.00 Veritas Global Equity Income Fund C USD $ 123.10 - 0.97 - Investment Management Association, 65 Kingsway,
Europ. Equity Fd GBP £ 96.03 - -1.46 - Pictet-ST.MoneyMkt-IUSD $ 135.39 - 0.00 0.00 ALVA Convertible A USD $ 128.02 - -0.62 0.00 Global Eq (ex Japan) Class JP5 ¥ 1.45 - 0.06 0.00
LTIF Stability A ACCU € 157.73 - 2.78 0.00 London WC2B 6TD.
OPTIKA Fund Limited - Cl A $ 94.86 - -2.67 - Veritas Global Real Return Fund A USD $ 20.75 - 0.34 0.30
Europ. Equity Fd USD $ 96.30 - -1.46 - Global Eq Ex Japan Index Fund (Hedge) ¥ 1.33 - 0.05 0.00 Tel: +44 (0)20 7831 0898.)
Pictet-Timber-I USD F $ 131.10 - 4.97 0.00 European Conviction A EUR € 144.65 - 3.79 0.00
Optima Fd NAV (Est) $ 85.69 - 0.23 0.00 Veritas Global Real Return Fund A GBP £ 11.62 - 0.19 0.32
Global Val.Cr.Fd GBP Ord Inc £ 106.90 - 0.11 3.70 Pictet Total Ret-Agora I EUR € 117.18 - 0.54 0.00 Gbl Govt Bond (Ex Japan) Index ¥ 1.34 - 0.02 0.00 OEIC: Open-Ended Investment Company. Similar to a
European Forager A EUR € 178.02 - 3.04 0.00 SIA (SIA Funds AG) (CH) unit trust but using a company rather than a trust
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Veritas Global Real Return Fund A EUR € 12.23 - 0.20 0.12
Global Val.Cr.Fd USD Inst Acc $ 120.31 - 0.16 0.00 Pictet Total Ret-Corto Europe I EUR € 134.89 - 0.60 0.00 Other International Fds Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.32 - 0.03 0.00 structure.
The Dorset Energy Fd Ltd NAV $ 20.39 - 1.97 0.00 Retail
Global Val.Cr.Fd GBP Ord Acc £ 173.39 - 0.13 0.00 LTIF Stability Growth SFr 185.70 - 3.40 - Japan Equity Index Fund ¥ 1.01 - 0.02 0.00 Different share classes are issued to reflect a different
Pictet Total Ret-Divers Alpha I EUR € 105.20 - -0.08 0.00 Polunin Capital Partners Ltd
Platinum Fd Ltd $ 78.42 - -3.04 0.00 Veritas Asian Fund B USD $ 207.05 - 2.02 0.00 currency, charging structure or type of holder.
Other International Funds LTIF Stability Inc Plus SFr 159.40 - 2.90 0.56
Global Val.Cr.Fd USD Ord Acc $ 162.81 - 0.12 0.00 Pictet Total Ret-Kosmos I EUR € 108.16 - -0.38 0.00 Japan Equity Class JP3 ¥ 1.22 - 0.02 0.00
Platinum Fd Ltd EUR € 15.20 - -0.59 0.00 Emerging Markets Active $ 40.75 - 0.67 - Veritas Asian Fund B GBP £ 282.35 - 3.41 0.00 Selling price: Also called bid price. The price at which
Global Val.Cr.Fd EUR Ord Acc € 151.33 - 0.11 0.00 Pictet Total Ret-Mandarin I USD $ 111.54 - 0.63 0.00 units in a unit trust are sold by investors.
Platinum Japan Fd Ltd $ 50.95 - -1.11 0.00 Luxcellence Em Mkts Tech $ 851.68 - 16.03 0.00 Veritas Asian Fund B EUR € 228.85 - 3.21 0.00
Swiss Select Equity Inst Acc SFr 111.33 - -0.79 0.00 Pictet-US Equity Selection-I USD $ 178.54 - 4.65 0.00
Standard Life Wealth (JER) The National Investor (TNI) Buying price: Also called offer price. The price at
Optima Partners Global Fd (Est) $ 13.52 - 0.04 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 www.tni.ae Veritas China Fund B GBP £ 130.29 - 0.33 0.00 which units in a unit trust are bought by investors.
Polunin Developing Countries $ 660.82 666.44 12.00 0.00
Swiss Select Equity Ord Acc SFr 109.98 - -0.79 0.00 Pictet-US High Yield-I USD F $ 142.29 - 0.34 0.00 FCA Recognised Includes manager’s initial charge.
Other International Funds
Optima Partners Focus Fund A $ 15.38 - -0.26 0.00 Polunin Discovery - Frontier Markets $ 1304.50 - 28.52 0.00 Standard Life Offshore Strategy Fund Limited Veritas China Fund B EUR € 163.91 - 1.09 0.00
US Growth USD Ord Acc $ 188.56 - 4.79 0.00 Pictet-USA Index-I USD F $ 171.61 - 4.15 0.00 TNI Blue Chip UAE Fund * AED 9.14 - 0.41 0.00 Single price: Based on a mid-market valuation of the
Polunin Small Cap $ 1266.92 1282.76 24.45 0.00 Bridge Fund £ 1.5807 - 0.0216 1.89 Veritas Global Focus Fund B USD $ 16.90 - 0.32 0.00 underlying investments. The buying and selling price
US Growth EUR Ord Acc € 180.08 - 4.60 0.00 Pictet-USD Government Bonds-I F $ 646.89 - 2.17 0.00 TNI Funds Ltd (BMU) for shares of an OEIC and units of a single priced unit
Oryx International Growth Fund Ltd Diversified Assets Fund £ 1.1528 - 0.0068 3.02 Veritas Global Focus Fund B GBP £ 21.27 - 0.44 0.00 trust are the same.
US Growth GBP Ord Acc £ 189.22 - 4.87 0.00 MENA Hedge Fund $ 938.96 - 33.96 0.00
Other International Funds Pictet-USD Short Mid-Term Bonds-I F $ 130.14 - 0.13 0.00
Private Fund Mgrs (Guernsey) Ltd (GSY) Global Equity Fund £ 1.8408 - 0.0342 0.64 Veritas Global Focus Fund B EUR € 15.60 - 0.36 0.00
TNI Funds Plc (Ireland) Treatment of manager’s periodic capital charge:
US Growth USD Inst Acc $ 169.91 - 1.78 0.00 NAV (Fully Diluted) £ 7.21 - 0.28 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 102.70 - 0.00 0.00 Regulated The letter C denotes that the trust deducts all or part
Global Balanced Fund - Income Units £ 1.3349 - 0.0124 2.07 MENA UCITS Fund * $ 960.24 - 22.76 0.00 Veritas Global Equity Income Fund B GBP £ 128.37 - 1.28 4.30
of the manager’s/operator’s periodic charge from
Wealthy Nat Bd EUR Inst Inc € 104.99 - 0.46 3.81 Pictet-Water-I EUR F € 273.20 - 8.06 0.00 Monument Growth 26/01/2016 £ 457.27 462.20 -2.15 1.32
capital, contact the manager/operator for full details
Global Balanced Fund - Accumulations Units £ 1.5619 - 0.0145 2.04 Veritas Global Equity Income Fund B EUR € 170.04 - 2.05 4.45
OTP Asset Management Romania SAI SA ((ROM)) of the effect of this course of action.
Wealthy Nat Bd GBP Inst Inc £ 109.15 - 0.49 3.77
www.otpfonduri.ro Global Fixed Interest Fund £ 0.9543 - 0.0029 5.47 Veritas Global Equity Income Fund B USD $ 102.07 - 0.80 4.53
Wealthy Nat Bd EUR Ord Inc € 103.87 - 0.36 3.56 Other International Funds Pimco Fds: Global Investors Series Plc (IRL) Prusik Investment Management LLP (IRL) Exit Charges: The letter E denotes that an exit charge
Enquiries - 0207 493 1331 Sterling Fixed Interest Fund £ 0.8337 - -0.0008 4.28 Veritas Global Real Return Fund B USD $ 20.11 - 0.32 0.00 may be made when you sell units, contact the
PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
Wealthy Nat Bd GBP Ord Inc £ 109.78 - 0.49 3.48 OTP Comodisro RON 16.89 - 0.00 - Regulated manager/operator for full details.
http://gisnav.pimco-funds.com/
UK Equity Fund £ 1.8259 - 0.0175 2.88 Veritas Global Real Return Fund B GBP £ 11.40 - 0.19 0.00
OTP Obligatiuni RON 14.31 - 0.01 - Dealing: +44 20 3640 1000 Prusik Asian Equity Income B Dist $ 146.27 - 0.92 4.40 Time: Some funds give information about the timing of
Wealthy Nat Bd USD Ord Inc $ 106.54 - 0.39 3.49
PIMCO Funds: +44 (0)20 3640 1407 Veritas Global Real Return Fund B EUR € 13.07 - 0.21 0.00 price quotes. The time shown alongside the fund
New Capital Alternative Strategies OTP Avantisro RON 8.00 - 0.10 - FCA Recognised Prusik Asia A $ 178.41 - 0.21 0.00 manager’s/operator’s name is the valuation point for
All Weather Fd USD Cls $ 117.83 - -0.64 0.00
Toscafund Asset Management LLP (UK) their unit trusts/OEICs, unless another time is
OTP Euro Bond € 12.43 - 0.00 - Capital Securities Inst Acc $ 14.65 - 0.05 0.00 Prusik Asian Smaller Cos A $ 129.84 - 0.35 0.00 indicated by the symbol alongside the individual unit
www.toscafund.com
Veritas Asset Management LLP trust/OEIC name.
All Weather Fd EUR Cls € 105.67 - -0.67 0.00 Commodity Real Return Fund Inst Acc $ 5.61 - 0.09 0.00 Authorised Funds
OTP Dollar Bond $ 10.59 - 0.00 - www.veritas-asset.com
Aptus Global Financials B Acc £ 2.85 - 0.07 4.85 Other International Funds The symbols are as follows: ✠ 0001 to 1100 hours; ♦
All Weather Fd GBP Cls £ 113.91 - -0.67 0.00 OTP Premium Return RON 1062.13 - 5.85 - Credit Absolute Return Fund Inst Acc $ 10.82 - 0.00 0.00 Purisima Investment Fds (CI) Ltd (JER)
1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Regulated Aptus Global Financials B Inc £ 2.50 - 0.07 5.01 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00 midnight. Daily dealing prices are set on the basis of
Tactical Opps USD Cls $ 115.54 - 3.20 0.00 Diversified Income - Inst Acc $ 18.95 - 0.07 0.00
PCG B 151.61 - 0.23 0.00 the valuation point, a short period of time may elapse
Stenham Asset Management Inc Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00 before prices become available. Historic pricing: The
Tactical Opps EUR Cls € 96.53 - 2.64 0.00 Diversified Income Durat Hdg Fund Inst Acc $ 10.88 - 0.00 0.00
PCG C 149.47 - 0.23 0.00 www.stenhamassetmanagement.com letter H denotes that the managers/operators will
Toscafund Asset Management LLP Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00 normally deal on the price set at the most recent
Tactical Opps GBP Cls £ 108.13 - 2.90 0.00 Emerging Asia Bond Fund Inst Acc $ 9.39 - 0.09 0.00 Other International Funds
www.toscafund.com valuation. The prices shown are the latest available
Emerging Local Bond - Inst Acc $ 10.44 - 0.12 0.00 Stenham Asia USD $ 128.00 - -1.80 - Other International Funds before publication and may not be the current dealing
Putnam Investments (Ireland) Ltd (IRL) levels because of an intervening portfolio revaluation
Regulated Stenham Credit Opportunities A Class USD $ 99.47 - -1.45 0.00 Tosca A USD $ 305.04 - -1.61 0.00 Waverton Investment Funds Plc (1600)F (IRL)
or a switch to a forward pricing basis. The
Emerging Markets Bond - Inst Acc $ 36.68 - 0.08 0.00
waverton.investments@citi.com managers/operators must deal at a forward price on
Putnam New Flag Euro High Yield Plc - E € 979.68 - 1.84 4.13 Stenham Equity UCITS USD $ 127.84 - 0.20 0.00 Tosca Mid Cap GBP £ 245.63 - -7.49 0.00 FCA Recognised
Permal Investment Mgmt Svcs Ltd Emerging Markets Corp.Bd Fund Inst Acc F $ 12.31 - 0.04 0.00 request, and may move to forward pricing at any time.
www.permal.com Waverton Asia Pacific A USD $ 15.82 - 0.13 5.83 Forward pricing: The letter F denotes that that
Stenham Growth USD $ 214.36 - -1.09 - Tosca Opportunity B USD $ 334.27 - -12.71 0.00
Emerging Markets Short-Term Local Currency Fund $ 11.40 - 0.06 0.00 managers/operators deal at the price to be set at the
Other International Funds
Waverton Global Bond Fund Cls A $ 8.49 - -0.01 4.27 next valuation.
Offshore Fund Class A US $ Shares Stenham Healthcare USD $ 184.07 - 0.80 0.00 Pegasus Fund Ltd A-1 GBP £ 55.26 - -0.15 0.00
Euro Bond - Inst Acc € 22.86 - 0.08 0.00
Waverton Global Equity Fund A GBP £ 13.37 - 0.35 0.61 Investors can be given no definite price in advance of
Northwest Investment Management (HK) Ltd Investment Holdings N.V. $ 5417.00 - -70.68 0.00 Euro Credit - Inst Acc € 14.77 - 0.05 0.00 Stenham Managed Fund USD $ 113.54 - -0.62 -
the purchase or sale being carried out. The prices
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Waverton UK Fund A GBP £ 12.60 - 0.10 1.98 appearing in the newspaper are the most recent
Macro Holdings Ltd $ 4176.78 - -15.24 0.00 Euro Income Bond - Inst Acc F € 12.80 - 0.02 0.00 Stenham Macro UCITS USD $ 100.11 - -1.08 0.00
Other International Funds provided by the managers/operators. Scheme
Fixed Income Holdings N.V. $ 349.32 - -14.81 - Stenham Multi Strategy USD $ 115.54 - -0.74 - Waverton Equity Fund A GBP £ 13.98 - 0.16 0.20 particulars, prospectus, key features and reports: The
Northwest $ class $ 2329.36 - -28.58 0.00 Euro Long Average Duration - Inst Acc € 22.57 - 0.29 0.00 most recent particulars and documents may be
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22 ★ FINANCIAL TIMES Tuesday 2 February 2016

MARKETS & INVESTING

SMART MONEY Capital markets

Stephen
Foley Puerto Rico proposes debt swap deal
Plan seen as opening salvo tain legal guarantees and faces a fresh omy, endless deficits and increasing
$23bn 25 per cent of the revenues the island
round of payments this year that it says debt.” earns in excess of its current projections.
while policymakers await it will be unable to make. The proposal would exchange debt The amount that If the debt swap is accepted as pro-
Puerto Rico is
Bank shares present Washington’s assistance Officials and bankruptcy experts
working on restructuring its estimate
that Puerto Rico faces $33bn of sched-
issued by the commonwealth and sev-
eral of its agencies into two new securi-
ties with greater legal protections, post-
seeking to cut from
its debt burden
posed, Puerto Rico’s debt service-to-
revenue ratio will fall to near 15 per cent
from 36 per cent currently, a figure that
a buying opportunity ERIC PLATT — NEW YORK
Puerto Rico is seeking to cut nearly
uled payments over the next decade.
The working group has identified new
poning payments until at least 2018 as
policymakers work to jump-start
46 %
Haircut that
ranks among the highest of US states.
“There is potential for full recovery in

if gloom is overdone $23bn from its debt burden as the cash-

strapped US territory flirts with insol-
vency, a proposal under which creditors
would take a 46 per cent haircut.
revenue sources and cost cuts that it
says would reduce the budget deficit by
about $34bn over that period. But offi-
cials concede that the commonwealth’s
growth.
Under the plan Puerto Rico would
place $26.5bn of the $49.2bn of debt into
creditors would
take under the
arrangement
principle but way down the road with
coupons in the near term below market
rates,” said Charles Blitzer, a former IMF
a base bond that would begin paying official who advises some Puerto Rico

A
ny postmortem on the terrible performance
of the equity market in January has to focus
on the financial sector. Financial stocks
account for 16 per cent of the S&P 500 in the
US, and their 9 per cent slide last month is
the biggest single reason the benchmark index is 5 per cent
lower than at the start of the year.
This dramatic underperformance seems out of step with
what is happening in the economy, where concerns centre
on China and the energy sector, to which US banks have lit-
tle exposure. The bank earnings season was actually quite
positive, with fourth-quarter results coming in ahead of
expectations in most cases, yet goliaths including Bank
of America, Citigroup and Morgan Stanley lost more than
15 per cent of their value last month.
For several reasons bank shares appear to have over-
shot, suggesting a lucrative buying opportunity.
Why do financials appear to have borne the brunt of the
January selling? One reason is the unwinding of bullish
bets placed in the run-up to the Federal Reserve’s first
interest rate rise in December. Many investors had hoped
that higher rates would give banks cover to improve their
net interest margin, the difference between the rate at
which they borrow money (from depositors) and lend it
out (to businesses).
With cloudier prospects for the economy, however, the
pace of Fed rate rises looks like it will be much slower than
first hoped. This is disappointing, but it does not justify the
scale of the sell-off.
Another explanation lies in investor psychology. Per-
haps inevitably, given what markets went through in
2008, it is hard to discuss a turn in the credit cycle and to
weigh the risks of a future recession without imagining a
financial crisis. But the world can go through some quite
terrible economic events without triggering a financial
meltdown. US banks’ bad
loans to oil companies would
never approach the scale of
BofA and its
the exposures to the US hous- peers are trading
ing market that triggered the
2008 runs.
at ‘recession
Despite the massive rise in prices but
bank capital and all the new
regulations, many people in
no recession’
January were willing to place
bets on another financial crisis, or at least take out
hedges against one.
Myron Scholes and Ashwin Alankar, experts in the
options markets who work at asset manager Janus Capital,
have spotted a sharp increase in the cost of insurance
against a banking sector meltdown. They monitor what
they call the “worst loss” scenario implied by options
prices — the share price decline ascribed a 10 per cent
probability by options traders.
According to Messrs Scholes and Alankar, the market is
suggesting a worst-case scenario of a 28 per cent decline in
financial stocks over the next three months — a financial
crisis-scale decline.
Options prices have signalled similar levels of fear
before, but only rarely, and only at the hottest moments of
the eurozone debt crisis or US debt ceiling debacles.
“I cannot identify a big source of risk,” Mr Alankar told
me last week, “but the market is seeing something. I worry
we could be missing something.”
Perhaps we are. Perhaps banks are concealing risks that
are not immediately apparent from their results or their
balance sheet statements. Or perhaps the market has over-
reacted to signs that the credit market has turned and the
economic outlook is darkening.
The latter is the opinion of banking analyst Mike Mayo,
whose “sell” recommendation on BofA had seemingly
been carved on a tablet of stone. Yet last week he raised his
rating to “outperform” after more than three years of neg-
ativity, saying January’s falls were out of hand.
As Mr Mayo put it, BofA and its peers are trading at
“recession prices but no recession”. On a share price-to-
tangible book value, bank stocks have fallen to levels
below the pre-financial crisis period, suggesting concerns
about widespread asset impairments. One does not even
have to be bullish on the economic outlook to be bullish on
the stocks; many banks could weather a mild recession
and still increase their book value.
It would not be the first time markets have panicked or
overshot. It is at such moments that buying opportunities
open for the smart long-term investor.
stephen.foley@ft.com
The commonwealth is offering credi-
tors invested in $49.2bn of some of its
most senior securities a swap for new
debt worth $26.5bn.
The plan, presented last Friday and
publicly disclosed yesterday, is seen as
an opening salvo from Puerto Rican pol-
icymakers who are still awaiting assist-
ance from Washington. The island has
defaulted on several debts that lack cer-
Platform party topples over into hangover
Investors turn against funding
model that allows companies
to expand through acquisition
MILES JOHNSON, DAN MCCRUM
AND ARASH MASSOUDI
Last week Bill Ackman, the showman
investor, did one of the hardest things a
hedge fund manager must do — stand
up and admit having made a mistake.
Investors in Pershing Square, his
hedge fund, suffered several billion dol-
lars in paper losses last year, in large
part because of the market’s loss of faith
in “platform companies” — for which
Mr Ackman has been Wall Street’s
greatest cheerleader.
Companies such as Valeant Pharma-
ceuticals and Altice had taken advan-
tage of cheap borrowing costs to buy up
businesses, helping them to expand
quickly. Until last August they were
some of the fastest-rising stocks, jump-
ing higher with each new deal and gen-
erating enormous fees for the Wall
Street institutions that funded and
advised them.
“We believe that ‘platform value’ is
real, but, as we have been painfully
reminded, it is a much more ephemeral
form of value than . . . other assets,” a
contrite Mr Ackman told investors. “It
depends on access to low-cost capital,
uniquely talented members of manage-
ment, and the pricing environment for
transactions.”
With that admission, it appears the
platform party may have come to an
end. Valeant shares have more than
halved since August, wiping $74bn from
its value, alongside net debt of $30bn.
Investors are less willing to lend to these
companies cheaply, hampering their
access to growth through acquisitions.
For investors still holding the shares
and debt, the question is how painful the
hangover will be.
In its simplest form, a platform com-
pany is one that expands by constant
acquisitions, usually powered by huge
debt. To its critics it has an uglier name,
associated with repeated corporate
blow-ups over the past quarter of a cen-
tury — the roll-up.
“A roll-up is basically a company
dependent on acquisitions for growth,”
says Jim Chanos, the short seller who
helped bring down Enron. “A business
which has no dynamic revenue growth,
where management spins a story that
they can extract synergies from stack-
ing these acquired businesses up.”
Wall Street generated $1.1bn in
budget remains significantly stressed interest in 2018. Principal payments bondholders.
without the ability to restructure debt would begin in its 2021 fiscal year, when Holders of general obligation bonds,
payments. Puerto Rico lacks access to interest payments are projected to considered the most senior debt, would
bankruptcy protection and has been reach 5 per cent a year. take a haircut of about 28 per cent in the
shut out of capital markets. The rest of the debt would be placed in new bonds. Investors owning debt
“A crisis of this magnitude must be a so-called growth bond, with payouts issued by the Puerto Rico Sales Tax
addressed in concert,” said Victor Sua- dependent on economic growth. Pay- Financing Corporation, known as
rez, secretary of state. “Otherwise we ments on these bonds would not begin Cofina, would take losses of 51 per cent.
risk our ability — and the opportunity — until 10 years after a restructuring was Other creditors would sustain losses on
to escape the spiral of a stagnating econ- agreed and would be capped at up to average of about 61 per cent.
Analysis. Equities
Share prices
Rebased
Valeant Pharms Platform
Altice Speciality Products
Nomad Foods S&P 500
100
80
60
40
20
Aug 2015 Jan
2016
Investment banking fees paid
2013-15 ($m)
Altice 484
Valeant 397
Platform Specialty
Products 180
Nomad Foods 22
Total 1008
Source: Thomson Reuters Datastream
Cheerleader investment banking fees supporting the able to Wall Street analysts. “Financial tinue, it is no longer willing to finance
at bay: Bill deal sprees of Valeant, Altice, Platform engineering can mask underlying fun- deals, so the model falls apart.
Ackman Specialty Products and Nomad Foods, damentals for a long time but not for “As these companies get bigger and
conceded last according to estimates by Thomson ever,” says David Puritz at BlueMoun- bigger they need to do bigger deals to
week that the Reuters and Freeman Consulting. To tain Capital, the hedge fund. sustain the growth,” says Jim Litinsky,
value of survive and service a collective $78bn “There are a lot of legitimate reasons head of JHL Capital, a Chicago-based
platform debt burden, these companies’ manag- why roll-up plays can make sense for hedge fund. “At some point the deals get
companies could ers need to deliver on promises to gener- investors, but the underlying businesses so big they can no longer be done, and
be ‘ephemeral’ ate growth organically. need to grow and benefit from their new the model goes into reverse.”
Scott Eells/Bloomberg
Roll-ups work because fast-growing corporate structure, which isn’t always Advocates of this “buy-and-build”
companies tend to be considered more the case.” model include Martin Franklin, who,
valuable. Investors are willing to pay a One spectacular example was Tyco, a supported by Mr Ackman, launched
higher multiple for the profits gener- conglomerate that made 120 big acqui- Platform and Nomad
ated each year if they think those profits sitions and many more lesser ones in a Mr Chanos, who has a short position
will be bigger in the future. decade of frenetic dealmaking, capped in several prominent platform compa-
Aggressive use of accounting treat- by the departure in 2002 of Dennis nies, notably Valeant, says: “In a bull
ments for takeovers can temporarily Kozlowski, chief executive, after an market people tend to forget that these
boost profits and cash flow, but taking accounting scandal. are just low-multiple businesses piled
this path requires ever greater deals to The roll-up model can contain the on top of each other.”
sustain the impression of growth. seeds of its own destruction. It relies on Asked why memories are short, he
Multiple acquisitions can also make a low cost of capital, which means it is says: “They’re investment banking
accounts increasingly complex, and give dependent on wider sentiment and in- driven, number one. Those roll-ups are
greater leeway for managements to vestor psychology. Once the market just huge fee payers to Wall Street.”
present numbers in a way that is favour- ceases to believe that growth will con- www.ft.com/lombard

Commodities Capital markets

Crude price trajectory divides hedge funds
DAVID SHEPPARD AND ANJLI RAVAL
Hedge funds are increasingly split over
the next move for oil after its rebound
from a 12-year low last month, setting
the market up for further sharp price
changes in 2016.
The market has been torn between fears
of Iran’s post-sanctions exports and
signs that the price crash has increased
the odds of Opec agreeing production
cuts with other countries.
Brent crude surged almost a third
between January 20 and 29, snapping
back from a 12-year low near $27 a bar-
rel to $35 by Friday.
Funds that had helped build a near-
record bet against oil at the beginning of
the year cut their bearish Brent posi-
tions by a quarter, according to data
from the Intercontinental Exchange.
At the same time money managers
have a record long position in Brent
equivalent to 360m barrels, or almost
four days of global oil demand, which
will benefit if prices climb further.
That could put more pressure on the
market if the hoped-for rally does not
materialise and traders are again forced
to sell. Brent fell almost 5 per cent
towards $34 a barrel yesterday as Opec’s
powerful Gulf members said there were
no plans for an emergency meeting,
despite efforts from Venezuela.
“No expectations of a production
agreement, together with a volume free-
for-all, will see prices slip back to the
mid-twenties and potentially lower,”
said David Hufton at PVM, an oil broker
in London. “A credible production
agreement, to be implemented rapidly,
will see prices back at $50 a barrel.”
In the US benchmark, West Texas
Intermediate, hedge funds increased
their bets against the price last week. By
historical standards the combined short
position of WTI and Brent remains very
large at more than 340m barrels.
Oil’s volatility this year follows a near
75 per cent crash over 18 months. Saudi
Arabia, Opec’s de facto leader, has
refused to cut production without the
co-operation of other members and big
non-Opec producers such as Russia.
Venezuela, a price hawk in Opec, sent
its oil minister, Eulogio del Pino, to meet
his Russian counterpart, Alexander
Novak, yesterday as part a tour to rally
support for co-ordinated cuts. After the
meeting Mr Novak said he would be pre-
pared to join any “multilateral consulta-
tions”, though there are few signs Mos-
cow is yet prepared to join a formal cut.
Mr del Pino will fly to the Gulf to meet
energy officials from Qatar, Saudi Ara-
bia and Iran this week.
German Bund yields bounce off record lows
ROCHELLE TOPLENSKY AND JOEL LEWIN
German government bond yields
dropped to record lows yesterday, tak-
ing a cue from Japan’s debt market,
with buying buoyed by the anticipation
of further easing from the European
Central Bank next month.
The five-year yield fell 1 basis point to a
record low of minus 0.32 per cent, while
the seven-year yield fell 2bp to a new
low of minus 0.10 per cent. The 10-year
Bund touched a low of 0.305 per cent
yesterday but then rose to 0.35 per cent.
“Despite unchanged or recovering
risk markets, Bund yields have fallen
over the past few sessions as investors
have continued to seek safe assets,” said
Justin Knight at UBS.
Investors have stepped up purchases
of top-tier government debt this year as
they expect further central bank easing
against a backdrop of slumping com-
modity prices and worries over global
economic activity.
Since Japan embraced a negative
interest rate policy late last week,
demand for eurozone government debt
has intensified. “Bond markets remain
on a roll globally after the Bank of Japan
joined in the rates race to the bottom,”
said strategists at Commerzbank.
Negative-yielding bonds in Japan and
Europe have climbed to $5.5tn as global
central banks adopt increasingly abnor-
mal policies to jump-start economic
activity and boost inflation.
After disappointing markets in
December, the ECB could follow the BoJ
and try to surprise markets with the
force of its easing, said Commerzbank.
“The near-term sequel is that euro
money markets may speculate on a
larger ECB depo [deposit rate] cut but
with incentives for banks to increase
lending.”
In the US solid demand for Treasuries
reflects the view that the Federal
Reserve will delay further raising offi-
cial borrowing costs. US inflation expec-
tations have fallen sharply and the bond
market has pushed out the timing of the
next move from March to September.
Mario Draghi, ECB president, has sig-
nalled that further easing could come as
soon as March. “The governing council
will review and possibly reconsider its
stance when it meets in March,” said
Benoît Cœuré, ECB executive board
member, yesterday.
Eurozone government bonds have
made impressive gains this year. Ger-
man 10-year yields have fallen 3bp to
0.33 per cent and Citigroup strategists
expect with “high conviction” that 10-
year yields could drop to 0.2 per cent.
Tuesday 2 February 2016 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
Disappointing China data weigh S&P 500 index
Change on day 0.46%

on stocks amid fresh falls for crude

Relative expectations and positioning
offer an opportunity to go long sterling
versus the Japanese yen, says RBC
Capital Markets.
The Bank of Japan’s move to
negative interest rates caused a sharp
fall in the yen at the end of last week.
It weakened to a seven-week low
above Y121 per US dollar.
But the currency team at RBC
reckon there may be more pressure on
the yen because overly bullish bets
have yet to be adequately trimmed.
“Markets went into Friday’s BoJ
meeting very long the yen and the
rally in the yen-crosses after the rate
cut is unlikely to have completely
cleaned up positioning,” it says.
“As remaining shorts are covered
and other flow remains yen-negative,
we expect the yen-crosses to grind
higher from here.”
Meanwhile, RBC thinks the pound
may get a boost this week because the
market is overestimating how cautious
the Bank of England will be in
tightening monetary policy.
“With UK rate markets 50 per cent
priced for a rate cut over the summer,
Thursday’s Inflation Report and press
conference would have to be very
dovish indeed to depress rate
expectations any further,” it says.
“With the lower path of implied rates
offsetting much of the impact of lower
oil prices on the BoE’s forecast, we
think the risk is disappointment
relative to very dovish expectations.”
The bank yesterday suggested
taking a long sterling/yen position at
Y172.71, with a target of Y176.0 and
placing a stop loss at Y171.0.
jamie.chisholm@ft.com
Yen
Against sterling (¥ per £)
160
170
180
190
200
Jan 2015 Feb
2016
Source: Thomson Reuters Datastream
Dollar retreats as prospect
of further Fed rate rises
recedes, even as Treasury
bond yields bounce off
multi-month lows
DAVE SHELLOCK
A fresh bout of concerns over China set
the tone for global markets as February
began, with a renewed slide for oil prices
paving the way for US and European
stocks to give back some of Friday’s
hefty gains.
By midday in New York the S&P 500
was down 0.4 per cent at 1,932 after
climbing 2.5 per cent at the end of last
week.
Across the Atlantic the Euro Stoxx
600 index slipped 0.2 per cent.
Those losses came as Brent crude fell
4.9 per cent to $34.23 a barrel, and US
West Texas Intermediate shed more
than 6 per cent.
However, Brent remained some way
clear of the 12-year low of $27.10 hit less
than a fortnight ago.
The dollar also went into retreat as
disappointing US data heightened
expectations that the Federal Reserve
would be in no hurry to raise interest
rates, even as Treasury bond yields
bounced off multi-month lows.
But it was China that grabbed the
markets’ attention after news that the
official manufacturing purchasing man-
agers’ index fell to a lower than expected
49.4 in January, a sixth successive
decline and the lowest reading for three
years.
The privately produced Caixin-
Markit manufacturing PMI edged up
from 48.2 to 48.4 — slightly better than
the consensus forecast, but still below
the 50 level that nominally separates
contraction from expansion.
“For policymakers the data will send a
mixed signal and is unlikely to change
China capital controls: FT.com/video
Martin Wolf, FT chief economics commentator, discusses
what Beijing could do to stem huge outflows
the assessment of a fragile economy
with significant structural issues,” said
Allan von Mehren, chief analyst at Dan-
ske Bank.
“We continue to look for more inter-
est rate cuts over the coming quarters —
mainly to ease the debt servicing bur-
den of Chinese companies. Policymak-
ers may be reluctant to cut rates until
they have seen a period of calmer waters
for the Chinese currency following the
significant pressure in early January.”
In spite of talk of further policy eas-
ing, the Shanghai Composite equity
index fell a further 1.8 per cent, taking
its decline since the start of the year to
24 per cent. The price of copper, which
is extremely sensitive to news on China’s
— Qilai Shen/Bloomberg
economy, touched a low of $4,496 a
tonne in London before recovering to
end flat at $4,560.
But the Nikkei 225 in Tokyo extended
Friday’s 2.8 per cent jump by 2 per cent
as the “feelgood factor” from the Bank
of Japan’s unexpected adoption of nega-
tive interest rates continued to buoy
sentiment.
The yield on the 10-year Japanese
government bond fell to a record low of
0.07 per cent, although the dollar stead-
ied against the yen at Y120.97 after Fri-
day’s jump to a six-week high.
However, the US currency fell 0.5 per
cent against a basket of peers — albeit
from near a 12-year high — with the euro
up 0.6 per cent at $1.0899 and sterling
2100
2000
1900
1800
Jan 2016 Feb
0.9 per cent higher at $1.4376, as dollar US equities Energy stocks led the way
bulls were unsettled by further gloomy lower as Wall Street surrendered some
economic figures. of Friday’s strong gains, with crude
The dollar’s weakness supported gold, prices under pressure from weak
which rose $8 to $1,126 an ounce. Chinese manufacturing figures
Although the Institute for Supply
Management’s manufacturing index FTSE 100 index
edged up from 48 to 48.2 in January, it Change on day 0.39%
came in below 50 for the fourth month 6200
in a row.
“This morning’s report is consistent 6000
with our outlook for tepid activity and 5800
employment growth in the US manufac- 5600
turing sector this year,” said Jesse Hur- Jan 2016 Feb
witz, an economist at Barclays.
“The continued appreciation of the UK equities The FTSE 100 retreated
trade-weighted dollar is hurting US from a three-week high as energy
manufacturers’ competitiveness in stocks tracked fresh losses for crude
many foreign markets, where demand prices following some disappointing
continues to deteriorate. We expect this Chinese economic data
trend to continue in the near term.”
James Knightley, economist at ING, Eurofirst 300 index
noted that the main weakness in the
Change on day 0.25%
ISM was in the employment compo- 1450
nent, which fell from 48.0 to 45.9 — the 1400
worst reading since June 2009. 1350
“This suggests that the sector will be a 1300
drag on overall employment growth in
1250
Friday’s payrolls report and indicates
Jan 2016 Feb
the consensus is being a little optimistic
in thinking that US manufacturing European equities Nokia shares fell
employment is only going to fall 2,000,” 11.2 per cent amid disappointment over
he said. the financial terms of a deal to share
“Indeed, we were seeing manufactur- its mobile phone patents with
ing employment fall by around 25,000 Samsung Electronics
to 50,000 per month in 2009 when the
ISM employment component was last at
these sorts of levels. As a result the over- Nikkei 225 index
all payrolls consensus figure for Friday (’000) Change on day 1.98%
19
at 190,000 is looking a bit high too.”
Other US data painted a similarly dis- 18
appointing picture, with construction 17
spending short of expectations as it
edged up just 0.1 per cent in December, 16
in spite of mild weather. Jan 2016 Feb
Nevertheless, US Treasury prices fell, Japanese equities The Nikkei rose to
with the 10-year yield, which moves its highest in nearly a month as the
inversely to its price, up 2 basis points at mood remained upbeat following the
1.95 per cent. The two-year yield was Bank of Japan’s policy easing on Friday
3bp higher at 0.81 per cent.

Aetna Not all deals received a thumbs-up

Wall Street
Aetna receives boost
after reduction in
medical care spending
Adam Samson and Pan Yuk
Aetna shares climbed yesterday after
better than expected quarterly profits
as the share of premiums spent on
healthcare services dipped.
The health insurer earned $320.8m in
the fourth quarter, up from $232m in
the period in 2014. Operating income,
which excludes certain items, rose
12 per cent year on year to $1.37 a share,
easily beating estimates of $1.21.
Aetna’s figures received a lift from a
reduction in medical care spending. The
proportion of premiums paid in
healthcare costs fell from 83 per cent to
81.9 per cent as its medical benefit ratio
in the government and commercial
segments dipped.
Mark Bertolini, chief executive, said
the group was “on track” to complete its
buyout of fellow health insurer Humana
in the second half. The pact, which
from shareholders. Shares in Stryker, Trading Directory
Share price ($)
104 the medical device company, fell 1.6 per
cent to $97.53, its biggest decline in more
102 than two weeks, after it announced a
deal to buy Sage Products, which makes
100 care products, for $2.78bn.
Jan 29 2016
Source: Thomson Reuters Datastream
Feb 1 Twitter, the short messaging service,
rallied 11.1 per cent to $18.68 after a
report said entrepreneur Marc
Indices Close
Day's
change
Andreessen and private equity group
Silver Lake had “considered some sort
S & P 500
DJ Industrials
1933.72
16411.85
-6.52
-54.45
of deal”. However, a source close to
Silver Lake dismissed the report, which
Nasdaq Comp 4600.90 -13.05 had appeared in The Information.
Russell 2000 1204.70 -8.35
The shares have halved over the past
VIX 20.45 0.25
12 months as a management overhaul
US 10 yr Treas Bd
US 2 yr Treas Bd
1.96
0.83
0.03
0.03
has done little to assuage investor
concerns over user growth.
Dominion Resources came under
was unveiled in 2015, would deepen pressure after the midsized US
exposure to the Medicare market, electricity and gas distributor unveiled
where its plans supplement those plans to buy smaller rival Questar for
offered to the elderly by the US $4.4bn. In a sign that Dominion’s all-
government. cash offer of $25 a share might be too
Aetna’s shares rose 2 per cent to rich for investors, the stock fell 1.8 per
$103.8, bringing their 12-month cent to $70.88. Questar shares jumped
advance to 12.5 per cent. more than 22 per cent to $24.86.
Elsewhere healthcare companies Aluminium producer Alcoa added to
were in focus after another batch of its 14-month rout, dropping 1.8 per
deals were announced. cent to $7.16 as news that Elliott
Shares in Alere, a provider of Management was supporting its board
diagnostic tests, surged more than nominees failed to lift sentiment. The
45 per cent to $54.01 after industry stock’s losses for the past 12 months
heavyweight Abbott Laboratories exceed 54 per cent.
agreed to acquire it for $56 a share. In midday trading the S&P 500 had
Under the deal, which will give Alere an slipped 0.41 per cent to 1,932.2, the Dow
equity value of $5.8bn, Abbott will Jones Industrial Average was 0.3 per
assume about $2.6bn of its debt. Abbott cent lower at 16,415.07 and the
expected the acquisition to lift its total Nasdaq Composite had declined 0.3 per
diagnostics sales to more than $7bn. cent to 4,600.8.

found that a further 24 Rolls-powered expectations on taste and value for

London
Rolls-Royce fails to take
off despite contract win
Bryce Elder
A contract win failed to lift Rolls-Royce
yesterday as worries grew that its civil
aerospace market was deteriorating.
News that Rolls had won a $2.7bn
order from budget carrier Norwegian
Air was overshadowed by industry data
showing the number of its engines
sitting idle had climbed since the turn of
the year.
Ascend, the aviation consultancy,
aircraft were “parked” in January. Its
monthly report showed that 13.5 per
cent of Rolls’ installed base of wide-
body engines were not in service, up
from about 12.5 per cent in late 2015.
Rolls has warned on profits five times
in two years in part because airlines
have been retiring older, fuel-inefficient
engines, which has put pressure on its
after-market revenues.
The shares closed unchanged at 555p
in a mixed wider market, with the FTSE
100 ending lower by 0.3 per cent or
23.69 points at 6,060.10.
Standard Chartered slipped 2.3 per
cent to 460p, its lowest since 2001.
Société Générale said a marketing tour
of US institutions had “found very little
interest” in StanChart, with investors
preferring to wait until oil prices
stabilised or the bank gave more
information on the break-even prices
of its clients.
Just Eat faded 3.8 per cent to 359.3p
after UBS started coverage with “sell”
advice and a 330p target.
In a customer survey, the takeaway
ordering website had scored below
money, said UBS. It forecast that
delivery outsourcing services such as
UberEats would erode Just Eat’s market
share because they were better able to
control food quality and delivery speed,
which almost all respondents deemed
important.
Home Retail Group climbed 11.9 per
cent to 152.9p ahead of today’s Takeover
Panel deadline for J Sainsbury to make a
formal bid. Investors anticipated an
extension to the deadline with the Argos
owner expected to agree a framework of
a deal at about 160p per share.
Smith & Nephew edged 0.8 per cent
lower at £11.53 after US peer Stryker
agreed to buy Sage Products, a privately
owned medical supplies maker, for
$2.78bn. Stryker admitted in 2014
that it had been working on a potential
bid for S&N, whose results are due
on Thursday.
Allied Minds, the US-focused
intellectual property incubator, added
7 per cent to 302.1p after a fundraising
valued the group’s Federated Wireless
spectrum-sharing subsidiary at $82m,
up from $10m.
24 ★ Tuesday 2 February 2016

INSIGHT Analysis. Currencies

Mohamed
El-Erian
PBoC’s options limited after renminbi victory
Traders eye international No more cat and mouse?
dimension as bets on a
Oil and equities are lower offshore rate persist
Chinese renminbi
Against the dollar (rmb per $)
China publishes details Gap between the two rates
reaches a record – until heavy
at the mercy of the
of the currency basket
Onshore it measures the intervention offshore by the
JENNIFER HUGHES — HONG KONG Offshore renminbi against in PBoC crushes speculators betting

same powerful forces If currency investors were in any doubt

over how to characterise the renminbi’s
an effort to encourage
traders not to fixate
on the dollar rate
on weakness. The gap widens
once more as offshore
speculators steadily return to
6.2

rollercoaster drama last month — a scuf-

T
betting on a weaker renminbi
fle, perhaps, or a skirmish — then 6.3
raders in both the oil and equity markets have China’s ruling Communist party has
been blaming each other for their unsettling made it clear: this is war. People’s Bank of China surprises
start to the year. Last week the party mouthpiece, the with a 1.9 per cent devaluation and
6.4
Yet both are being influenced by much People’s Daily newspaper, used a front- a pledge to allow markets a greater
larger changes in their common environment page editorial to warn hedge fund man- role in setting the exchange rate
— changes that have increased codependency, aggravated ager George Soros off a fight over the
asset class contagion and suffocated, at least for now, renminbi and the Hong Kong dollar in a 6.5
some pretty obvious and potentially rewarding longer- piece titled “Declaring war on China’s The spread between
term differentiations. currency? Ha ha”. the onshore and offshore
PBoC reportedly intervenes
Equities and oil experienced a pretty awful January. The People’s Bank of China squashed renminbi widens as
to close the gap between the 6.6
Notable price declines have occurred in the context of wild speculative bets a fortnight ago when its investors bet on faster
onshore and offshore rates
volatility, including intraday swings. And the correlation heavy intervention produced painful depreciation to come
– just as China goes on its
between the two has been unusually high, with the asset swings — so it perhaps considers that it week-long Golden Week break
classes tending to move together, alternating between has had the last laugh. 6.7
sharply lower and higher. Its target, however, was the offshore Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Quite a few analysts have rushed to attribute causation renminbi rate, whose weakness was
2015 2016
to such high correlation. Because energy names account sending dangerous signals to onshore FT graphic Source: Thomson Reuters Datastream
for a sizeable part of the S&P index, large oil price falls are investors, prompting fears over
deemed to depress this component’s earning potential and increased capital flight. And in the past
worsen sentiment for equities as a whole. week it has softened again. ‘Name me a borrowing costs for the currency soar- summer that first opened a significant the Federal Reserve admits, potentially
For their part, oil traders feel that a sell-off in equities Traders use cat-and-mouse analogies ing to unheard-of levels in a painful gap between the two rates. at its March meeting, that it is unlikely
amplifies worries about global growth, damping energy as often as military ones when discuss- US hedge blow to any investor who was short the Closing the offshore market is not to raise interest rates four times this
consumption forecasts and putting pressure on energy ing run-ins with central banks. And in fund that isn’t currency and therefore forced to cover impossible but would be tricky and year, as it has forecast.
prices. And both worry that the disinflationary impulses the cartoon world of Tom and Jerry, they short the the position. potentially politically fraught. For years In the meantime, traders are hoping
accentuate the risk of a general deflation that would point out, Jerry the mouse does not need But all Jerry-like bets were not van- the offshore market has been used to that the looming lunar new year holiday
encourage consumers to postpone purchases in anticipa- to kill Tom the cat; he just needs to upset renminbi still quished. Last week Bill Ackman told boost overseas use of the Chinese cur- damps activity this week and next,
tion of lower prices in the future. him and live to fight another day. — even if investors in his Pershing Square hedge rency, encouraging international com- when the onshore market has a week-
While there is some validity to these arguments, they The gap between the two rates, which they’re not fund he was still short the renminbi. panies to borrow in it. long holiday and Hong Kong, centre of
are far from compelling as at its peak last month reached about “Name me a US hedge fund that isn’t Most pertinent for renminbi followers offshore trading, closes for three days.
robust explanations for the 2 per cent, is a problem for Beijing. The sure what will short the renminbi still,” says one Asia- could be the G20 central bankers’ meet- The PBoC appears to have been inject-
rather unusual correlations
The bigger larger it gets, the less serious the govern- happen next’ based strategist. “They all have to be — ing, hosted by China, this month. Ana- ing extra liquidity into the market
that have developed between reality promises ment’s pledges to allow market forces to their investors expect it — even if they’re lysts are speculating that because no before the break — more than it usually
oil and equities around the direct the currency look. The gap is also not sure what will happen next.” country wants to see China depreciate does — in an effort to stem any liquidity
world.
further volatility dangerous: offshore weakness is read as Suggestions of what China should, or sharply — or for its actions to cause the drain from capital outflows.
For a start, lower oil prices and unusual a warning by onshore investors, trigger- could, do range from a one-off devalua- sort of volatility suffered in January — a But some investors have warned that
translate into huge windfall ing capital flight if they fear an exchange tion, big enough to get ahead of market joint statement could be used to signal weak-renminbi bets are not safe over
gains for consumers, leaving
correlations rate threat to their assets. expectations, to the closure of the off- international support in an effort to the holidays. The PBoC used thin liquid-
them with more to spend on Briefly the PBoC eradicated the gap shore market. deter investors from fresh bearish ren- ity before October’s long Golden Week
other items. Indeed it is not so long ago that an oil price between the tightly controlled onshore Neither of those is considered the minbi bets. holiday to intervene unexpectedly and
plunge was viewed as unambiguously positive for western rate and the offshore one. Its interven- most likely next step, however. It was There is another possibility: the dollar squeeze offshore weakening bets. Some-
countries — and also for quite a few developing economies. tion, buying renminbi, sent offshore the PBoC’s supposed one-off move last could come to the renminbi’s rescue if times Tom surprises Jerry.
To the extent that more production is taking place in the
US in particular, the macroeconomic impact of the related
losses is still less than the consumption gains.
The questionable causality is amplified by the lack of Capital markets
differentiation. The equity market sell-off has been indis-
criminate, encompassing even airlines and retail names
serving segments of the population that disproportion-
ately benefit from the fall in oil prices, including lower-
Recovery hopes rise
income consumers. Similarly, only gold has been spared
the generalised decline in commodity prices.
going into February
A better explanation of the correlation between oil and
equities is that both are being influenced by three more
general developments. ROGER BLITZ, DAN MCCRUM, improve sentiment towards
First, downward revisions in global growth projections ELAINE MOORE AND GAVIN risk assets.
JACKSON
on account of concerns about uncharacteristic policy mis- Alexander Altmann at Cit-
haps in China and other emerging economies. These have January’s pessimism will igroup said the positive
added to the unsettled demand situation for oil and is plac- give way to a more upbeat impact of cheap oil was still
ing a cloud over corporate earnings — shown last week by February, if a snapshot of feeding through, because
Apple’s revenue miss and lower second-quarter guidance. market opinion is any guide. “the low-income consumer is
Second, the loss of safety nets. The December interest paying down more debt
rate shift by the US Federal Reserve has crystallised an Investors, asset managers rather than spending”.
important reality for equity investors — notwithstanding and strategists asked by the Wall Street’s pessimism
Japan following Europe into negative policy rates, they can FT to give reasons to be was not shared on Main
no longer rely to the same extent on central banks to uni- cheerful unearthed evidence Street, he added. “Markets
formly maintain ultra-low interest rates as a way of for optimism. may be in a funk but con-
encouraging financial risk-taking and pushing more Alberto Gallo at RBS cited sumers in the US and Europe
money into stocks. Meanwhile the oil market has yet to more fiscal stimulus in are becoming more confi-
recover from the shock of seeing Opec reject being the Europe, the potential for US dent on the back of falling
swing producer on the downside, or exiting its historical infrastructure spending and unemployment and rising
role of limiting production to counter a price decline. attractive valuations in US incomes.”
Third, there are very few sizeable balance sheets willing credit markets and Euro- US wage growth was “still
to step into markets, even when segments have visibly pean equities. fine”, said Mr Altmann.
overshot. The countercyclical risk appetite of the broker- “Other markets are priced Even if the US economy
dealer community has been muted by both regulatory and for a strong recovery, like US was weakening, said Mr Rid-
market pressures. equities or emerging market dell, that might be no bad
Rather than blame each other, both oil and equity trad- corporate debt,” he said. thing. “If you believe that a
ers need to realise that they are part of a much bigger real- Optimism can be found in lot of the problems in finan-
ity. It is one that promises continued volatility, coupled the places where pessimism cial markets have been
with excessive contagion, unusual correlations and some has run deep. China worries, driven by a strong US dollar
yet to be exploited opportunities for longer-term returns. plunging oil prices and Fed- and, linked to this, a Fed that
eral Reserve monetary tight- is in tightening mode, then
Mohamed El-Erian is chief economic adviser to Allianz, chair of ening have gripped senti- the surprise weakening in US
President Obama’s Global Development Council, and author ment. “The market seems to data since mid-November
of the book ‘The Only Game in Town’ be pricing almost the sum of should make you more posi-
all these fears,” said David tive on markets,” he said.
Riley at BlueBay, the asset Europe continues to
manager. “[This] is arguably recover, according to Zoso
overdone.” Davies at Barclays. “Lending
Mike Riddell at Allianz conditions remain easy and
More comment and data on ft.com said Chinese PMI data sug- we are seeing signs of domes-
gested “no imminent col- tic credit demand driven by
lapse”. Kevin Daly at Aber- investment plans,” he said.
Y Fast FT Our global economies, headed deen Asset Management and Longer-term pick-me-ups
team gives you market- by Brazil, Russia, India Alan Wilde of Baring Asset included Brazil — “approach-
moving news and views, and China. Management saw stability in ing an inflection point”, said
24 hours a day, five days ft.com/beyondbrics renminbi movements. Mr Riley — and China. Every-
a week. ft.com/fastft “Concerns will persist one knew China needed to
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a about capital flight and make the adjustment, said
irreverent financial blog. look at what is driving declining growth indicators, hedge fund manager
Join Paul Murphy and the global currency so the jury is still out, and Stephen Jen, and that had
Bryce Elder for the daily market. ft.com/podcasts China will remain a key risk,” clearly begun. “Why then
Markets Live session at said Mr Daly. “But for now should we be unhappy?”
Y Lex Video Analysis fears have eased.” Not everyone is convinced.
11am. ft.com/alphaville
and opinion from the Fears about falling oil Paul Lambert of Insight
Y beyondbrics News and team on the hot issues prices have been exagger- Investment wondered where
comment from more affecting companies and ated, according to Mr Wilde. growth would come from. “It
than 40 emerging markets. ft.com/lexvideo He said the oil price was con- might be right to be optimis-
solidating and would tic, but perhaps not yet.”