TUESDAY 6 SEPTEMBER 2016 WORLD BUSINESS NEWSPAPER EUROPE

South China unease FT history exam 2066 Rising risk

Why Beijing has concerns about Join Gideon Rachman’s imagined challenge This is a good time to cut market
Hillary Clinton — BIG READ, PAGE 8 for students 50 years hence — COMMENT, PAGE 11 exposure — MOHAMED EL-ERIAN, PAGE 22

Bond scarcity Face to face Putin and Obama meet

at G20 for ‘tough’ talks on Syria
Briefing
i VW faces action in 20 European nations

fears as ECB EU justice chief Vera Jourova has told the FT that
the carmaker faces claims that it broke consumer
protection laws in 20 states by marketing cars at the
centre of the “dieselgate” scandal as “green”.— PAGE 13

passes €1tn
i HK separatists’ poll win set to rile Beijing
Young activists who oppose China’s control have
been elected to Hong Kong’s legislature, setting the
stage for tensions to rise with Beijing, which rejects
separatism.— PAGE 4; EDITORIAL COMMENT, PAGE 10

of purchases i BoJ chief defiant over policy easing

Haruhiko Kuroda has vowed to
loosen monetary policy until
inflation hits 2 per cent, in a
defiant speech paving the way
for easing this month.— PAGE 3;
3 Global yield collapse cuts supply LEX, PAGE 12; SHORT VIEW, PAGE 13

3 Governing council to meet this week
ELAINE MOORE — LONDON
CLAIRE JONES — FRANKFURT
The European Central Bank has passed
the €1tn mark for its controversial pur-
chases of government bonds, putting
pressure on policymakers to address the
scarcity of available assets when they
meet in Frankfurt this week.
A global collapse in eurozone bond
yields since Britain’s vote to exit the EU
has dramatically reduced the stock of
eurozone government paper standing
above the yield threshold set for the
ECB’s €1.7tn bond-buying project —
raising concerns that the ECB will have
to make sweeping changes to avoid run-
ning out of bonds to buy.
The bond purchases are part of a
quantitative easing programme — like
those of Japan and the UK — launched to
fight the threat of deflation and boost
the flagging eurozone economy by driv-
ing down borrowing costs for companies
and lifting confidence.
In Germany, where the yield on 10-
year Bunds has fallen below zero for the
first time in history, bankers at Citi-
group estimate the country’s entire gov-
ernment bond market will become inel-
igible for the scheme by November.
“There are various estimates of when
the ECB will hit a wall because it does
not provide exact breakdowns of the
bonds it already owns — but everyone
agrees that it is close to reaching its
limit,” said Aman Bansal, interest rate
strategist at Citi. “And the bank cannot
slow the pace of bond purchases without
sending out a signal to the markets that
something is wrong.”
i Mexico threat to Trump over 1848 deal
A bill to go before Mexico’s congress today would
The programme, launched in March consider ripping up the agreement that transferred
2015, hit the €1tn mark on September 1, a slab of land to the US if the Republican wins the
reaching €1.002tn at the end of last election and rips up the Nafta trade deal.— PAGE 4
week — equivalent to about one-sev-
enth of the universe of eurozone govern- i Biggest banks’ revenues sink 15%
ment and agency bonds, according to Combined sales have fallen 15 per cent in the first
figures from Dutch bank Rabobank. half of this year, the most since the aftermath of the
The news came as the ECB’s governing financial crisis, underlining the urgent need for
council prepares to meet this week amid radical measures to boost investor returns.— PAGE 13
doubts that its policies have done
enough to lift the region’s economy. i Modest hopes for Russian land giveaway
While the halfway point for the pro- The latest attempt by the Russian state to settle the
gramme has now been passed, inflation country’s far east, a region two-thirds the size of
remains virtually non-existent. The lat- China with a population of only 6m, has proved
est figure from Eurostat, the European more difficult than it did a century ago.— PAGE 3
Commission’s statistics bureau, showed
prices rose by 0.2 per cent in the year to i US car ownership dream still alive
June — well below the ECB’s inflation Reports of the demise of the American dream of
target of just under 2 per cent. mass car ownership have been exaggerated, with
“This has now become a question of urban millennials, the biggest users of ride-sharing,
credibility,” said Franck Dixmier, global showing the greatest intent to buy a car.— PAGE 16
head of fixed income at Allianz Global
Investors. “The [ECB] meeting is an
opportunity to communicate new macr- Datawatch
oeconomic projections and new inten-
tions to the market.”
However, analysts are split on
Alexei Druzhinin/AFP/Getty Images
Britons’ preferences on Turkish, Romanian
whether the eurozone’s monetary Russian President Vladimir “We have had some productive would strengthen co-operation immigration and Nigerian
guardians will support an extension of Putin, left, and his US counter- conversations about what a real on fighting terrorism. Net reponses: ‘more’ minus ‘less’ per migrants are the
country (%) least welcome in
the QE programme beyond next spring part Barack Obama meet yes- cessation of hostilities would At the broader G20 meeting, -30 -20 -10 0 10 20 30 40 50 the UK, according
as soon as Thursday. terday on the sidelines of the look like, that would allow us leaders were warned they must
US to a survey in
The ECB has so far said it will buy summit of G20 leaders in the both, the United States and “civilise capitalism” to help Ireland which those from
€80bn a month of mostly government Chinese city of Hangzhou. Russia, to focus our attention revive economic growth and Germany the US, Canada,
France
bonds until at least March 2017. While it The two men agreed to step on common enemies [such as address a rise of populist politi- India Ireland and
is widely expected that the eurozone’s up efforts to curb fighting in Isis],” he said. cal movements. “Growth has Israel Australia were
central bankers will remain active in the Syria despite the lack of a cease- Mr Putin said there was a been too low for too long for too Poland most preferred.
Pakistan
single currency area’s bond markets fire deal since a truce crumbled convergence of views. He said it few,” said Christine Lagarde, Romania Some 70 per cent
beyond that date, policymakers could this year. was premature to give details head of the International Mon- Turkey said immigration
wait until later in the year to commit to Mr Obama described their about the terms of an agree- etary Fund. Source: YouGov, Aug 2016 (selected countries) was too high
buying bonds for longer. talks as tough but productive. ment, but that the two nations G20 pages 2&3

Ailes hires Hulk Hogan’s lawyer in bout

with magazine over Fox News exposé
MATTHEW GARRAHAN allegations by female Fox employees. Cooper, Sandra Bullock and Clint East-
NEW YORK
Mr Sherman has covered Mr Ailes for wood, keeping their names off products
Roger Ailes has hired the Hollywood several years and written a book about they were not paid to endorse.
libel lawyer who recently represented the former Fox News chairman. His case for Mr Bollea, who sued after
former pro-wrestler Hulk Hogan and Mr Sherman’s latest article, published Gawker posted a sex video of him,
Merkel struggles for would-be first lady Melania Trump to on Friday, contained various allegations gained notoriety after it emerged that
answers after poll blow take on New York magazine after the including that Mr Ailes had made billionaire Silicon Valley investor Peter
publication ran an exposé about his disparaging remarks about James Thiel had bankrolled the suit.
Analysis i PAGE 4 tenure at the helm of Fox News. Murdoch, the chief executive of 21st Ms Trump hired Mr Harder to sue the
Century Fox. UK’s Daily Mail after it published, then
Charles Harder vaulted to the top tier of It is unclear if Mr Ailes will ultimately retracted, a story reporting allegations
Austria €3.60 Luxembourg €3.60 celebrity litigators after winning $140m sue Mr Sherman or New York magazine. that the modelling agency she worked
Bahrain
Belgium
Din1.7
€3.60
Macedonia
Malta
Den220
€3.50 in damages this year for Mr Hogan, Mr Ailes could not be reached for com- for in the early 1990s also served as an
Bulgaria
Croatia
Lev7.50
Kn27.50
Morocco
Netherlands
Dh43
€3.60
whose real name is Terry Bollea, against ment and Mr Harder did not return escort service.
Cyprus €3.50 Norway NKr35 Gawker, the online media group that emails seeking comment. Susan Estrich, Mr Ailes’ chief lawyer,
Czech Rep Kc100 Oman OR1.50
Denmark DKr32 Pakistan Rupee 280 was forced to file for bankruptcy follow- Mr Sherman declined to comment last week accused Mr Sherman of hav-
Egypt
Finland
E£20
€4.10
Poland
Portugal
Zl 18
€3.50 ing the verdict. but the magazine confirmed it had been ing a “vendetta” against her client.
France
Germany
€3.60
€3.60
Qatar
Romania
QR15
Ron17
Mr Harder has written to New York contacted by Mr Harder, adding that Ms Estrich told the Daily Beast that
Gibraltar £2.70 Russia €5.00 magazine to take issue with articles Mr Sherman’s stories had been “very Mr Sherman would “use any woman he
Greece €3.50 Serbia NewD420
Hungary Ft1090 Slovak Rep €3.60 about the former Fox chief by Gabriel carefully reported”. can find — no matter how clearly and
India
Italy
Rup195
€3.50
Slovenia
Spain
€3.50
€3.50
Sherman, who chronicled Mr Ailes’ Mr Harder has represented A-List deeply troubled she is — to try to con-
Kazakhstan
Kenya
US$5.50
Kshs300
Sweden
Switzerland
SKr37
SFr5.90
downfall after sexual harassment stars such as George Clooney, Bradley coct allegations against Mr Ailes”.
Latvia €6.99 Tunisia Din7.50
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00

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2 ★ FINANCIAL TIMES Tuesday 6 September 2016

INTERNATIONAL

G20 summit

May’s balancing act on Brexit at heart of trade talks

Cordial reception for prime
minister tempered with
reminders of responsibility
GEORGE PARKER — HANGZHOU
Theresa May came to China bringing
warnings of a crisis in global capitalism.
She left with a resounding message from
her fellow world leaders not to let Brexit
make matters worse.
The British prime minister arrived at
her first international summit with a
first-hand account of how a public back-
lash against globalisation and elites had
contributed to the vote to leave the EU.
But while her prescriptions of tougher
action on corporate tax avoidance and
excessive boardroom pay drew nods of
approval around the G20 table, she was bad Brexit deal could “unravel” US-Brit- market could now face customs or tariff porary, who promised that his country nies based in Britain would continue to
also reminded of her own responsibili- ish business ties. barriers. He told Mrs May he attached would strike a “very strong, very open” have access to European markets.
ties to keep world trade flowing. Mr Obama and Shinzo Abe, the Japa- “extreme importance” to the UK-Japan trade deal with Britain after Brexit. Mrs May’s confirmation that she was
Mrs May cut an intriguing figure at the nese prime minister, were among those relationship, according to a Japanese Narendra Modi, India’s prime minis- rejecting the Brexiters’ preferred model
summit. She had never properly met to urge Mrs May not to allow Brexit to government spokesman. ter, was more cautious about a speedy regulating European migration — a
most of the attendees — indeed, she had create walls between Britain and revival of old Commonwealth trade ties points-based scheme treating EU and
never before travelled to China — yet the Europe, thus hindering trade for US and once Britain adopts its own commercial non-EU citizens equally — will ease
Brexit issue with which she is grappling Japanese companies based in the UK.
‘We want to put in place policy, an idea promoted by some Brex- some concerns about a “hard exit”.
made her a subject of intense interest. Other world leaders also advised Mrs a relationship which is iters. In a meeting strained by Mrs May Yet she has yet to make the crucial cal-
By her own admission she is not one of May not to seek a “hard” Brexit. expressing concerns about Indians over- culation on how much single market
the great schmoozers of politics, yet her “We did not become the enemy of the
not inspired by revenge staying their visas in Britain, Mr Modi access she is prepared to trade to control
aides said she spoke to most of the G20 UK after the Brexit referendum,” said but by partnership’ said there was a need to “work towards” EU migration. Reconciling the interests
leaders during her 48 hours in China, Jean-Claude Juncker, president of the a trade deal with Britain but officials said of Conservative MPs and a Eurosceptic
throwing herself into meetings with US European Commission. “We want to put “Prime minister Abe requested her talkswere at“theexploratory” stage. British public with the needs of interna-
President Barack Obama and Russian in place a relationship which is not co-operation to enhance predictability Mrs May said that India and other tional business and her new friends at
President Vladimir Putin immediately inspired by revenge but by partnership.” and to continue to secure Japanese com- countries, including Mexico and Singa- the G20 will prove Mrs May’s most
after an overnightflight. Mr Abe underscored concerns set out panies, businesses and value chains.” pore, had expressed an interest in trade daunting challenge this autumn.
Her reception was cordial but wary. in a 15-page Japanese memo that com- Mrs May’s most comfortable meeting deals with Britain. More pressing for Additional reporting by Tom Mitchell in
Mr Obama talked up the enduring “spe- panies lured to Britain by the promise of was with Malcolm Turnbull, Australia’s many of Mrs May’s interlocutors was a Hangzhou.
cial relationship” but also warned that a untrammelled access to the EU single prime minister and an Oxford contem- desire for certainty that their compa- Editorial Comment & Letters page 10

Referendum. Commons debate Business data

UK negotiating stance remains unclear
Opposition Labour party says
Conservatives’ positive vision
is merely a ‘pipe dream’
JAMES BLITZ AND HELEN WARRELL
David Davis, secretary of state for exit-
ing the EU, made his first statement to
parliament on Brexit, fending off a bar-
rage of questions over the precise details
of how the UK will negotiate with Brus-
sels.
While Mr Davis promised a “national
consensus” and said his department of
180 civil servants, together with a fur-
ther 120 staff in Brussels, was assidu-
ously working on a plan for Britain’s big-
gest foreign and economic challenge in a
generation, he declined to reveal any
contours of what may be taking shape.
Liam Byrne, a Labour MP and former
chief secretary to the treasury, said that
while the government had said “Brexit
means Brexit”, what MPs were treated
to from Mr Davis was “waffle means
waffle”.
Mr Davis insisted the UK would not
need to indulge in trade-offs that have
been suggested by the critics of Brexit,
arguing that the UK could gain new con-
trols over immigration and the right to
trade freely outside the EU. He also said
he would speak to as many companies
and organisations as possible in a
national consultation aimed at securing
the best negotiating position.
But Emily Thornberry, shadow for-
eign secretary, attacked Mr Davis for
failing to put forward a detailed plan
about how Britain was likely to win the
concessions, arguing that “his positive
vision is just a pipe dream”.
Mr Davis’s performance contrasted
with that of Theresa May, the prime
minister, who gave more insight into her
private thinking on Brexit at the G20
summit in Hangzhou.
There was anger from some Brexiters
after Mrs May spelt out that Britain
would not adopt an “Australian-style
points system”.
Some former Remainers may be
tempted to think that Mrs May is step-
ping back from seeking tough control
over EU migrants, opening up the possi-
bility of negotiating a “soft Brexit” and a
close trading relationship with the EU.
Her comments seemed particularly
timely given calls from Shinzo Abe, the
In profile: UK Japanese prime minister, for “clarity” ence in Hangzhou to only seeking ‘What the
prime minister from Britain over its Brexit position, and “some” control over EU migration
Theresa May after a statement from Japan that the rather than “full” control as is the case Japanese
leaves a news UK should adopt a “soft” Brexit of single with non-EU migration to the UK. This want is for
conference after market access and regulatory harmony may suggest she is open to compro-
the closing of with the EU. mises. the British
the G20 summit If such a relationship were to be Moreover, her opposition to the Aus- to remain
in Hangzhou achieved, the UK would have to commit tralian points system may have wider
yesterday to the most modest restrictions on free significance if it indicates that she is pre- in the
Damir Sagolj/Reuters
movement, at best. pared to face down other pledges made European
But caution is needed in assessing Mrs by the Leave campaign during the refer-
May’s stance; her complaint with the endum. Economic
Australian points system is that it Labour MPs noted yesterday that Mrs Area and
applies too little control over incoming May had refused to confirm in
migrant flows, not too much. Hangzhou that she would abide by Vote this is
Mrs May clearly wishes to rein in the Leave’s promise to provide an extra impossible
numbers of incoming migrants and has £100m a week to the National Health
made clear that this is what the British Service after ending Britain’s contribu- to achieve’
people want. tions to the EU budget.
A points-based regime would there- On the question of Britain’s future
fore be less effective in her view than a trading relationship with the EU, Mrs
limited quota of work permits set by May and her colleagues have provided
government. little new detail in recent days. Her cabi-
The devil therefore lies in the detail of net last week went no further than say-
any future system of work permits. ing it would seek “a positive outcome” in
Even so, it was striking that Mrs May its negotiations with the EU “for those
repeatedly referred in her press confer- who wish to trade goods and services”.
The Japanese government’s paper will
be seen by Remainers as important
ammunition for the prime minister if
she wants to persuade hardline Brexit-
ers in her party of the need for a deal
that retains access to the single market.
However, John Springford of the Cen-
tre for European Reform, who is con-
vinced Britain will see “a hard Brexit”,
said that the Japanese paper amounted
to an implausible wish list.
“What the Japanese want is for the
British to remain in the European Eco-
nomic Area and this is impossible to
achieve. It is difficult to see Theresa May
securing that while also keeping her
pro-Brexit MPs on board.”
But others say that the cabinet is riven
by divisions between Leavers and
Remainers and there is much to play for.
Some Tory MPs have noted that Liam
Fox, the international trade secretary,
was forced to talk publicly in July about
the need for Britain to leave the EU’s
Customs Union but the move is yet to be
backed publicly by Number 10.
Janan Ganesh page 11
Surveys cited
as proof of
economic
confidence
JIM PICKARD AND EMILY CADMAN
LONDON
The British government seized upon
three upbeat business surveys as proof
that the economy remained in robust
health despite the public’s vote in June
to leave the EU.
After the figures were published David
Davis, Brexit secretary, said the UK
would enter negotiations with other EU
states from a “position of strength”.
“Our economy is robust,” he said as he
updated the House of Commons on
progress during parliament’s summer
break. “The latest data suggest our
manufacturing and service industries
and consumer confidence are strong.”
Companies were putting their “faith
and money” in the UK, Mr Davis said,
citing inward investment announce-
ments from SoftBank, Siemens and
GlaxoSmithKline during the summer.
After falling in July to its lowest level
since the financial crisis, the Markit/
CIPS survey of purchasing managers
recorded the largest month-on-month
gain in its 20-year history.
The main business activity index rose
from 47.4 in July to 52.9 in August, pass-
ing the 50 mark that separates expan-
sion from contraction.
Coming after similar recoveries in
consumer confidence and manufactur-
ing surveys, the better than expected
result will boost policymakers’ confi-
dence that the economy is not heading
for a recession.
Theresa May, prime minister, speak-
ing at the G20 in China, said there
could still be “difficult times ahead” for
the UK economy. “I won’t pretend it’s all
going to be plain sailing,” she said,
observing that some data had been con-
tradictory.
Sterling hit a seven-week high against
the dollar and a one-month high against
the euro on Monday.
Chris Williamson, chief economist at
Markit, said the risk of recession had
“fallen significantly”. But many compa-
nies were still cautious, he said. “It
remains far too early to say whether
August’s upturn is . . . the start of a sus-
tained post-referendum recovery.”

West Africa
MAKE A SMART INVESTMENT
Subscribe to the FT today at ft.com/subscription Ghana hopes to issue new bond despite concerns over debt
MAGGIE FICK — ACCRA which reached a high of nearly 11 per of GDP to 5 per cent. But some experts An IMF delegation was in Accra last
cent of gross domestic product. That put warn that taking on more debt is risky — week for talks over issues that pre-
Ghana’s finance minister hopes to tap
west Africa’s second-largest economy debt service costs are already the second vented it from disbursing $115m of its
international capital markets for the
on unstable ground ahead of the slump biggest item in the budget behind public loan package that should have been
fourth time in as many years, but dis-
in commodities prices. The government sector wages. released over the summer.
NOVEMBER 7 2015

missed concerns that government

was forced to turn to the International “I am at a loss as to why they would go The fund said in a statement yester-
spending and borrowing ahead of elec-
Monetary Fund for a bailout plan of to the market now,” said Joe Abbey, head day that “understandings” were
tions increased the risk of the nation’s
nearly $1bn last year — the first African of the Centre for Policy Analysis in reached on many issues. But it added
FINANCIAL TIMES Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco- debt becoming unsustainable.
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gish economy. trying to stay within its fiscal targets, His views underscore uncertainty tion has slowed in recent months,
For both services phone +44 20 7873 4816, or email A spending spree before 2012 elec- adding that it had lowered its targeted over the government’s management of although it is still running at more than
syndication@ft.com
tions ballooned the budget deficit, budget deficit for 2016 from 5.3 per cent the economy. 18 per cent.
Tuesday 6 September 2016 ★ FINANCIAL TIMES 3

INTERNATIONAL

Japan Globalisation

BoJ governor dismisses ‘limit’ on easing G20 urged to

Kuroda eyes more rate
cuts and asset purchases
in quest for 2% inflation
ROBIN HARDING — TOKYO
Haruhiko Kuroda has vowed to keep
easing monetary policy until inflation
reaches 2 per cent, in a defiant speech
dismissing the Bank of Japan’s critics.
Mr Kuroda, the central bank’s gover-
nor since 2013, said its policies had
“contributed significantly to the posi-
tive turnround in Japan’s economy” and
there was no chance of reducing the
level of monetary accommodation.
His remarks pave the way for further
easing this month, including possibly
cutting interest rates from the current
minus 0.1 per cent. “It is often argued
that there is a limit to monetary easing
but I do not share such a view,” Mr
Kuroda told an audience in Tokyo.
There was plenty of scope for the BoJ
to buy more government bonds, cut
interest rates, or to buy assets such as
corporate bonds, equity and real estate
funds, he added. Moreover “other new
ideas should not be off the table”.
Analysts have suggested various ave-
nues for further easing, such as a cap on
the yield curve, purchases of foreign
bonds and the buying of other domestic
assets such as local government debt.
The yen was slightly stronger at
ECB. Monetary policy
¥103.6 to the dollar, the Topix share
index was up 1 per cent at 1,354 and the
10-year bond yield came close to escap-
ing negative territory after the speech.
Mr Kuroda launched a huge mone-
tary stimulus in 2013, buying ¥50tn
year of government bonds. In October
2014 he raised the pace to ¥80tn, and in
January this year he cut interest rates to
minus 0.1 per cent.
Yet despite the high level of monetary
stimulus, the latest data show that the
consumer price index is 0.4 per cent
lower than a year ago amid a slowdown
in inflation, even excluding volatile food
and energy prices.
Mr Kuroda said the failure to hit 2 per
cent inflation had been caused by three
shocks: falling oil prices, weakness in
demand after Japan’s consumption tax
was raised in 2014, and the slowdown in
emerging markets. Also because Japa-
nese consumers were used to sluggish
prices, their expectations of future infla-
tion had followed prices down, damping
wage demands and creating a self-fulfill-
ing prophecy.
“It is imperative for the BoJ firmly to
maintain its commitment to achieving
the price stability target of 2 per cent at
the earliest possible time,” said Mr
Kuroda.
He sought to defend his “extremely
powerful” negative interest rate policy,
raising the chances of a further cut this
month. The policy has come in for
heavy criticism in Japan, both from
banks and the public.
There had been no damage to the sup-
ply of bank credit so far, said Mr Kuroda,
but the BoJ had to consider the long-
term trade-off between a healthy finan-
cial system and a lower yield curve.
“Needless to say, there is still ample
space for further cuts in the negative
interest rate,” he said.
“The BoJ has a broad range of policy
options. It will continue to choose the
most appropriate policy actions among
those options, depending on the situa-
tion for economic activity, prices and
financial conditions.”
Lex page 12
Short View page 13
‘civilise
capitalism’
to counter
populists
TOM MITCHELL, GEORGE PARKER AND
GABRIEL WILDAU — HANGZHOU
Leaders of the world’s 20 largest econo-
mies have been warned that they must
“civilise capitalism” as they seek to
revive economic growth and address
growing public scepticism about the
benefits of free trade and globalisation.
This year’s summit of G20 leaders,
which ended yesterday in the eastern
Chinese city of Hangzhou, came in the
wake of British voters’ decision to leave
the EU and the rise of populist political
candidates on both sides of the Atlantic.
Officials present during closed-door

One size does not fit all with negative rates
Economists call for bolder
cuts, but the results depend
on a host of national factors
GEMMA TETLOW
ECONOMICS CORRESPONDENT
When the European Central Bank’s top
officials gather in Frankfurt this week,
they will face a dilemma that has only
grown more difficult over the summer.
Bankers in Germany and elsewhere
are up in arms about the ECB’s ultraloose
monetary policy — most of all the nega-
tive interest rates that have crushed
institutions’ profitmargins.
However, the slow recovery has led
economists to urge the eurozone’s mone-
tary authority, and counterparts else-
where, to take their actions further. A
report last week by the International
Centre for Monetary and Banking Stud-
ies and the Centre for Economic Policy
Research concluded that interest rates
should be cut further below zero and
asset purchasesexpanded.
“Any side-effects are manageable and
not of a magnitude to justify timidity,”
said the study, known as the Geneva
report, written by four economists.
While the debate between partisans
and opponents of negative rates has
become more impassioned, in practice
the effectiveness of such policies often
depends on the characteristics of indi-
vidual economies.
Factors such as how banks finance
themselves, the prevalence of private
pensions, the strength of national cur-
rencies and the use of alternatives to
cash are particularly important.
Such variables can decide whether
negative interest rates feed through into
the economy or fall short. They help
explain the differences between the
seven regions that have experimented
with the policy since 2012: Denmark,
the eurozone, Switzerland, Sweden,
Bulgaria, Japan and, recently, Hungary.
In Denmark some homeowners
receive rather than pay interest on their
mortgage each month, while in the
eurozone the boost for consumers has
been far less. And while negative rates
have weakened the Swedish krona,
making exports more attractive, there
has been no comparable effect in Japan.
Banks have found it harder to pass
rate cuts on in countries where they are
highly reliant on retail depositors for
financing. If lenders want to cut rates
charged to borrowers without squeezing
profit margins, they must also cut inter-
est paid to depositors, or find other ways
of boostingrevenues.
Some banks in Ireland, Denmark and
Central bank policy rates
Per cent
Eurozone (ECB repo)
Eurozone (ECB deposit)
Sweden (Riksbank repo)
Switzerland (SNB 3-month Libor target)
Denmark (Nationalbank CD rate)
Japan (BoJ policy rate)
2007 08 09 10 11 12 13
Sources: Thomson Reuters Datastream; ECB
Horseshoe Switzerland have started to charge com-
apartments in panies for holding deposits but most
Copenhagen: seem unwilling to charge individuals —
some Danish perhaps because they fear permanently
property owners losing customers. In Japan it has even
are receiving been suggested that such charges could
rather than be against the law.
paying interest Lenders in Germany, Italy, Portugal
on their and Spain depend on retail depositors.
mortgages But their counterparts in France and the
Kim Petersen/Shutterstock
Netherlands have more varied sources
of financing, and Nordic banks derive a
low share of funding from deposits.
The ECB is seeking to mitigate the
problem through cheap loans that pro-
vide commercial banks with as much as
€27bn in alternative financing, through
its targeted longer-term refinancing
operations programme.
Another challenge is that negative, or
very low, interest rates make it harder to
accumulate assets needed to provide
sessions said US President Barack
Obama, UK prime minister Theresa
May and her Australian and Canadian
counterparts emphasised the need to
placate public discontent. According to
the officials, Australian prime minister
Malcolm Turnbull, a former Goldman
Sachs banker, warned his peers of the
need to “civilise capitalism”.
“Growth has been too low for too long
for too few,” Christine Lagarde, manag-
ing director of the International Mone-
tary Fund, said at the conclusion of the
summit. “There was also a determina-
tion around the room to better identify
the benefits of trade in order to respond
to the populist backlash against globali-
sation.”
One G20 official said there was a high
“degree of awareness” among heads of
government that globalisation could be
thrown into reverse. “It has taken the
rise of populists across the world for
them to realise this,” he said. “If we do
not address the issue of fairness, [it]
could endanger the global economy.”
Another person involved in the dis-
cussions said that “it was a summit
where leaders have been talking a lot
more about people and less about eco-
nomics”.
Chinese president Xi Jinping helped
Composite lending rates for house purchase set the tone of this year’s G20 meeting in
Percentages per annum, three-month moving averages a weekend address to business execu-
6 6 tives. “Development is for the people, it
Eurozone Italy should be pursued by the people and its
5
Germany Spain 5 outcomes should be shared by the peo-
4 France Netherlands ple,” Mr Xi said.
“This is not just a moral responsibility
3 4
of the international community,” he
added. “It also helps unleash immeasur-
2 3
able effective demand.”
1 The global economy is projected to
2 expand just 3 per cent this year as its tra-
0 ditional engines of trade and invest-
-1 1 ment sputter.
2008 09 10 11 12 13 14 15 Before the two-day meeting, the US
14 15 16 government argued that a “public band-
wagon” was growing to ditch austerity in
favour of fiscal policy support.
“Maybe the Germans are not abso-
private retirement incomes. People and about a currency depreciation, increas- lutely cheering for it but there is a grow-
employers could perversely respond by ing imported inflation and export ing awareness that ‘fiscal space’ has to
saving rather than spending more. demand. Denmark and Sweden bene- be used to a much greater extent,”
This is a concern in the UK, where fited in this way when rates were cut. agreed Ángel Gurría, secretary-general
many people rely on private pensions for But it has been a different story in of the Organisation for Economic Coop-
retirement income. Mark Carney, gover- Japan. The yen continues to be viewed eration and Development.
nor of the Bank of England, says he is as a haven, attracting foreigners. China’s economy, the world’s second
“notafan”ofnegative rates. ‘If cash One other factor plays a big role in largest, is growing at its slowest rate in a
But in most of Europe pensions are determining the success or otherwise of quarter of a century. Chinese officials
still provided by the state via unfunded, ceases to negative interest rates: notes and coins. say they have room to boost fiscal
pay-as-you-goschemes. exist . . . As long as people have access to cash, spending given relatively low public sec-
Guntram Wolff, director of Bruegel, a they may be able to avoid negative inter- tor indebtedness, but are putting more
Brussels think-tank, says that in such interest est rates, limiting the scope for cuts. emphasis on structural “supply side
countries one would “almost expect the rates [can Sweden, where negative rates has been reforms”.
opposite” of the effect in the UK. Loose relatively successful, is closer to being “Following the old road of relying
monetary policy that boosts the econ- go] as cashless than many places. purely on fiscal and monetary policy
omy and employment should make pay- negative as “If cash ceases to exist . . . central leads to a dead end,” Mr Xi said yester-
as-you-go schemes easier to sustain, so banks can make nominal interest rates day, adding that his government
reducing individuals’ fears about future needed as negative as needed to spur recoveries remained committed to cutting domes-
income. In Germany two-thirds of pen- to spur from recessions,” says the report. tic steel capacity by up to 150m tonnes
sionincomeisfromthestate. Additional reporting by Ralph Atkins, by 2020 while eliminating a billion
Negative interest rates can also bring recovery’ Robin Harding and Claire Jones tonnes of coal production.

Go east Russia’s free land offer aims to rekindle pioneering spirit and inspire new colonies
KATHRIN HILLE — NOVOKACHALINSK
Anton Nekhoroshkov had driven
almost five hours to take possession of
his property: a piece of land the govern-
ment gave him free under a programme
to boost settlement of Russia’s thinly
populated Far East region.
But after a few steps on to his plot, the
young businessman from Vladivostok
beat a hasty retreat. The ground was
marshy, and his white golf shoes were
soaked.
Russia’s Far East, a region two-thirds
the size of China, has a population of
only 6m, while more than 100m live in
the Chinese provinces just across the
border.
Launched in July, the free land pro-
gramme is a time-tested response to this
imbalance. The imperial Russian state
“sought to settle its peripheral regions
with a predominantly Slav and agricul-
tural population in order to secure con-
trol over them and promote economic
development”, writes David Moon, a
historian specialising in peasants in the
Russian empire.
The policy was a huge success under
Pyotr Stolypin, a prime minister whose
land reform programme triggered the
migration of millions of peasants from
European Russia to Siberia in the years
before the first world war.
More than a century later, some Rus-
sians are keen to follow their path. “I
want to come out here, where our ances-
tors colonised the land,” says Yuri
Bugaev, a Cossack from St Petersburg,
who has founded a movement to help
people claim the free one-hectare plots.
Still, most experts, and even those
interested in taking up the free land,
have low expectations for the revival of
the land giveaway.
Mr Nekhoroshkov is a case in point.
The 27-year-old small trader chose his
plot from an online map for what
seemed like a promising roadside loca-
tion, in a corner of the Primorye region
near the Chinese border. “I will open a
shop where tourists and truck drivers
coming from China can buy provisions,”
he said when signing the deed at the
local government offices last Tuesday.
Even Mr Nekhoroshkov’s modest
vision might be difficult to realise. After
discovering that he had been given a
piece of swamp and that the road to
China was a gravel track with almost no
traffic, the young man confessed he had
“no immediate plans” for construction.
Anton Nekhoroshkov wants to open
a shop for tourists and truck drivers
That is not to say there are not oppor- In Primorye, the effect is palpable.
tunities in agriculture in the Far East. Large tracts of land that used to lie fal-
The rouble’s fall against the dollar in low are now soya bean fields, many
2014 has given Russia’s industry a boost. rented and worked by Chinese farmers.
Meat and oil seeds producers have made Chinese investors have also rehabili-
big investments, and Russian agricul- tated former collective rice-planting
tural exports are on the rise. The coun- areas near Lake Khanka neglected since
try’s agricultural trade balance with the end of the Soviet Union.
China swung from a deficit into a sur- Martin Tate, a farmer from New Zea-
plus earlier this year. land who is married to a Russian and has
an agricultural business in Primorye, is
2,000 km bullish.
“This area is located at the same lati-
tude . . . as southern Minnesota and
northern Iowa, the big grain-growing
areas in the US. It has a similar climate,
RUSSIAN and is great for growing a corn/soyabean
FAR EAST
rotation, same as is practised in the US
RUSSIA Midwest,” he says.
The proximity to China offers big
opportunities, with the nearest customs
PRIMORYE point earmarked for an expansion.
MO NG OL IA
“There is a renaissance of arable farm-
Vladivostock NORTH ing going on in the Russian Far East,”
CHIN A JAPAN
PACIFIC says Mr Tate, adding that there is “still a
OCEAN lot to be developed”.
But participants in Moscow’s land
programme do not seem well-placed to
cash in.
“By now, all more or less attractive
land plots are controlled by someone. I
highly doubt any good land plots will be
offered within the framework of the
programme,” says Andrey Sizov, man-
aging director at SovEcon, an agricul-
ture consultancy.
Even if the potential pioneers find
good land, one hectare is far too little.
Mr Sizov puts the minimum size for a
viable farm at 500 hectares.
Aware of this, Mr Bugaev has made it
his mission to find Russians willing to
pool agricultural holdings.
His quest has even led him to a
secluded colony of Old Believers, a Rus-
sian Orthodox sect whose members set-
tled in the Siberian borderlands and
whose ancestors fled persecution in
Russia.
“There will be several hundred from
Latvia, and there will be up to 1,500
from Bolivia,” he predicts.
4 ★
Merkel loses her aura of
invincibility after poll loss
CDU party faithful question how much trust German chancellor can recover
STEFAN WAGSTYL — BERLIN
In her decade in office, Chancellor
Angela Merkel has repeatedly won elec-
tions with the simple motto: trust me.
But Sunday’s vote in her home region
of Mecklenburg Vorpommern has
stretched that trust to breaking point.
Voters angry with her controversial ref-
ugee policy abandoned the established
parties, including her conservative
Christian Democrats (CDU), in droves
and backed the anti-immigration right-
wing Alternative for Germany (AfD).
“We must all think hard about how we
can now win back trust again,” said a
tired-looking chancellor, speaking in
China at the end of the G20 summit.
“And of course, in the first place that
means me . . . I am the party chairman,
I am the chancellor.”
But even her own party faithful won-
der how much of that trust she can
recover, given how far the government’s
unpopular open-door refugee policy has
become her personal crusade. A once-
impregnable leader who had a popular-
ity rating of 75 per cent in early 2015,
before the refugee crisis broke, is now
on 44 per cent, her lowest in five years.
“It’s a fundamental change when the
chancellor herself comes under attack
so much,” says a senior CDU MP. “There
is a feeling that without her things
would not improve [for the party]. But
you have to ask how long she can go on
when she is so divisive.”
The defeat in the region where the
chancellor has her parliamentary seat,
marks a new low in 62-year-old Ms Mer-
kel’s struggle to retain public backing.
AfD leader Frauke Petry celebrated say-
ing: “Ms Merkel is bringing herself
down.”
The AfD, formed only in 2013, took
20.8 per cent of the vote, winning sup-
port from other parties and bringing out
non-voters, helping to raise the turnout
from 51.5 per cent to 61 per cent.
The CDU, meanwhile, fell from 23 per
cent in 2011 to 19 per cent, its worst
result yet in the state. The SPD social
democrats fared somewhat better than
had been predicted but still plunged
from 35.6 per cent to 30.6 per cent
In the ruling coalition, the most stri-
dent demands for change came from the
Bavaria-based CSU, which has long criti-
cised Ms Merkel and called for refugee
limits and tougher border controls.
Bavarian finance minister Markus
Söder, a CSU hawk, demanded a
“change of course” and said: “The feel-
ings of the citizens cannot be ignored
any more.”
Sceptical CDU MPs in the party’s
influential grouping for small and medi-
um-sized companies were due to meet
later yesterday to discuss the election
result. The group has repeatedly echoed
the CSU in calling for tougher action.
Meanwhile, the SPD, Ms Merkel’s coa-
lition partners, is stepping up criticism,
capitalising on the fact that they did bet-
ter than forecast in Mecklenburg Vor-
pommern and will lead the region’s
probable new coalition government.
SPD officials credit the relative suc-
cess to the recent criticisms of Ms Mer-
kel, including last week’s blast from
party chief Sigmar Gabriel questioning
her “We can do it” approach to refugee
integration.
The SPD sees chances of restoring its
Productivity puzzle Experts struggle to agree on how to keep increasing US living standards
SAM FLEMING — WASHINGTON
The dramatic slide in US productivity
will be one of the defining features of the
next president’s economic inheritance.
Yet when it comes to diagnosing the
causes of the slowdown, or coming up
with cures, there is little consensus
among economists.
The raw figures are striking. Labour
productivity has dropped for three
quarters in a row, the longest string of
declines since the 1970s. The fall in the
second quarter was revised even lower
last week, to a 0.6 per cent drop, accord-
ing to Department of Labor statistics.
Brendan Duke at the Center for Amer-
ican Progress estimates the US will pro-
duce $2.8tn less in goods and services
this year than economists were forecast-
ing before the crisis, and the bulk of the
shortfall was because of slower produc-
tivity growth. Unless things change, the
US will struggle to lift living standards.
Which policies would do most to
address the productivity puzzle?
Invest in infrastructure
Boosting infrastructure is a rare policy
area where presidential candidates Hil-
lary Clinton and Donald Trump agree.
FINANCIAL TIMES
INTERNATIONAL
Angela Merkel flagging fortunes by championing ‘There is a
campaigning in increases in social spending to counter
feeling that
Greifswald the widespread impression that Ger-
market, mans are losing out while public money without her
Mecklenburg- is channelled to refugees. It is also grasp-
things
Vorpommern, ing an opportunity to promote a classic
last month centre-left agenda and to attack the would not
Stefanie Loos/Reuters
chancellor. Thorsten Schäfer-Gümbel,
an SPD deputy leader, said: “On the side improve.
of the CDU there is no idea how you do But you
social integration.”
After Mecklenburg Vorpommern, Ms have to ask
Merkel faces a string of four more how long
regional elections, including in Berlin
she can go
on when
German elections
Results in Mecklenburg-Vorpommern (%) she is so
divisive’
2011 2016
SPD 35.7
30.6
CDU 23.1 AfD
20.8
Left 18.4 19.0
13.2
Greens 8.4
NPD 6 4.8
FDP 2.7 3.0
3.0
FT research
Both say they will spend more on roads, action on business taxes is the US has
bridges and waterways. Mrs Clinton has the highest statutory rate among
outlined a five-year, $275bn plan, while advanced economies, which may at the
Mr Trump says he wants to double that margin be deterring companies from
number. investing, according to Martin Neil
The Congressional Budget Office has Baily, a former chairman of the Council
found that rises in investment increase of Economic Advisers under Bill Clinton
productivity via three channels: spend- who is now at the Brookings think-tank.
ing on physical capital such as roads He advocates lowering the headline rate
facilitates commerce; education while broadening the tax base.
expenditure boosts skills; and research The problem with focusing too much
and development promotes innovation. on corporate tax, however, is that US
The cost of inaction is heavy. The rates are in effect lower than the head-
American Society of Civil Engineers said line rate appears. What is more, coun-
this year that gross domestic product tries with extremely low rates — such as
would take a $4tn hit between 2016 and Ireland — have also seen ebbing produc-
2025 if the country continues to under- tivity growth, says Mr Duke. “There is
invest in infrastructure. no statistically significant relationship
Past studies have found construction between corporate tax cuts and the size
of the US interstate highway system, of the productivity slowdown,” he said.
which began in the mid-1950s, He argues instead that more needs to
increased productivity growth as busi- be done to stimulate aggregate demand,
nesses found it cheaper to produce and which will induce companies to spend
transport their goods. That was a game- more, and that wages need to rise to
changing project, however. Future encourage business leaders to invest
advances may be more marginal. more and substitute capital for labour.
Cut corporate taxes Immigration reform
Mr Trump has put aggressive corporate Mrs Clinton’s economic policies encom-
tax cuts at the heart of his economic pass an overhaul of immigration laws
agenda. The justification for taking that include a pathway to legalisation
later this month, before the crucial test
of next parliamentary elections, in
autumn 2017.
Ms Merkel has yet to announce
whether she will run for a fourth term.
Karl-Rudolf Korte, a politics professor
at Duisberg-Essen University, says there
is a “50 per cent chance” that she might
not. She could stay in office until after
the Bundestag elections, giving her a
long and elegant exit, he argues.
But the consensus in Berlin is that she
will not voluntarily surrender power, if
only because no German chancellor has
ever done so.
Also most CDU MPs see no alternative
to her: the favourite, 73-year-old
finance minister Wolfgang Schäuble, is
judged by many as too old.
However, if she remains in power, so
does her unpopular refugee policy, as
Ms Merkel made clear yesterday,
defending her approach for the ump-
teenth time.
That seems certain to further fuel the
AfD. With Germans no longer shunning
the nationalist right out of concern for
the Nazi past, the AfD could next year
become the first rightwing party since
1945 to win Bundestag seats. The loss of
trust in Ms Merkel is having historic
consequences.
Additional reporting by Guy Chazan
for undocumented immigrants — in
contrast with Mr Trump’s calls for mil-
lions to be ejected from the country.
Bringing more immigrants into the
workforce and allowing them to take
jobs better aligned to their skills carries
a double benefit, according to Moody’s
Analytics. It lifts potential growth by
boosting the labour force, and enhances
productivity because immigrants are
more likely to be entrepreneurs.
CBO analysis of the so-called Gang of
Labour productivity growth
Smoothed annual rate (% change)
5 gesting Darwinist forces are not operat-
US
Japan
4
Germany
UK
3 Mr Baily says the patent system may
2 tive forces, and he advocates reducing
1 may be to beef up antitrust enforce-
0 Barack Obama has been seeking to do.
1973 80 90 2000 13
Source: OECD
Legislative council
Election of Hong Kong activists
set to raise mainland tensions
BEN BLAND — HONG KONG
Several young activists who oppose
China’s control over Hong Kong have
been elected to the territory’s legisla-
ture in a sign of growing political polar-
isation and anger with Beijing.
The victory by emerging politicians,
including 23-year-old Nathan Law, who
cut his teeth during the Occupy protests
of 2014, sets the stage for a further esca-
lation of tensions with Beijing, which
vehemently rejects separatism.
“I will bring a new vision for the dem-
ocratic movement, which is self-deter-
mination for the Hong Kong people,”
said Mr Law, who will become the
youngest member of the city’s 70-seat
legislative council.
Opposition groups secured 30 of the
70 seats, according to results released
yesterday, ensuring that they maintain
the minimum one-third vote bloc
needed to veto major government pro-
posals.
Young people in the semi-autono-
mous territory have become increas-
ingly outspoken since the failure of the
Occupy movement to win democratic
concessions from Beijing, with a grow-
ing number calling for self-determina-
tion or even independence.
They accuse Beijing of undermining
Hong Kong’s autonomy and rule of law
through incidents from increasing polit-
ical meddling to the abduction of five
booksellers last year.
The rise of a more radical group of
young politicians signifies a genera-
tional shift in attitudes to China, which
resumed control of Hong Kong from
Bilateral treaties
Mexican bill eyes retaliation if
Trump axes Nafta trade deal
JUDE WEBBER — MEXICO CITY
So you want to play hardball Mr
Trump? Mexico is to consider revoking
a series of bilateral treaties — including
the 1848 agreement that transferred
half its territory to the US — if the
Republican candidate wins the presi-
dency and rips up the North American
Free Trade Agreement, according to a
bill to be presented to Congress.
The initiative, to be proposed today by
Armando Ríos Piter, a leftwing senator,
follows last week’s much-criticised
meeting between Mexico’s President
Enrique Peña Nieto and US presidential
contender Donald Trump, which
inflamed public opinion and sparked a
cabinetrift.
Mr Peña Nieto has faced a backlash at
home over what many saw as his red
carpet treatment of Mr Trump during
the latter’s visit, as the Republican has
branded Mexicans “rapists” and wants
to build a border wall that he insists
Mexico will pay for.
“This is the first step towards estab-
lishing a public policy about how Mex-
ico should react in the face of a threat,”
Mr Ríos Piter said. “This [bill] is simply
to protect a successful 22-year-old rela-
tionship [Nafta] that has helped both
nations. We want to defend that from a
position that seeks to destroy it. We
have to put it in black and white.”
The move is the idea of Agustín Bar-
rios Gómez, a leftwing former legislator
who heads the Mexico Image Founda-
Eight immigration reform bill of 2013,
which contained a pathway to citizen-
ship but which foundered in the House
of Representatives, found that the legis-
lation would increase the population by
about 10m people in 2023. Total factor
productivity, a measure of innovation,
would be boosted by about 0.7 per cent
in 2023, the report said.
Boost competition
A growing body of work suggests there is
a problem with US competitiveness. Big
groups are capturing a growing share of
revenues, and there is a widening gap
between the productivity of frontier
companies and that of laggards, sug-
ing as effectively as they should. The
share of start-up companies in the over-
all business world has been declining.
be one factor that is hindering competi-
the lives of patents. Another answer
ment, something the administration of
Stephan Danninger, a Washington-
based division chief at the International
Monetary Fund, said: “Compared to a
Tuesday 6 September 2016
Britain in 1997. Hong Kong is facing fur-
ther political turmoil at a time when its
mainland-dependent economy is going
through the “worst time for 20 years”,
according to the city’s finance chief.
More than 58 per cent of the terri-
tory’s 3.8m electors voted on Sunday, in
a record turnout that underlines the
deepening political rift between those
supporting the establishment and those
promoting democracy and greater
autonomy or even independence.
Cheng Chung-tai, another newly
elected legislator who is calling for a ref-
erendum on Hong Kong’s future status,
said he would “use all measures to pro-
mote this idea within the legislative
council” before the “constitutional cri-
sis” when Hong Kong’s autonomy
within China ends in 2047.
David Zweig, a professor at the Hong
Kong University of Science and Technol-
ogy, said that the rise of a new genera-
tion of politicians like Mr Law and Mr
Cheng was “pretty scary for the main-
land because now you have a whole gen-
eration of young people who are not
patriotic [towards China]”.
He compared the growing rejection of
Chinese control in Hong Kong to that of
self-governing Taiwan, where opposi-
tion to Chinese influence helped sweep
the pro-independence Democratic Pro-
gressivepartytopowerinJanuary.
Before the election, the Hong Kong
government halted the candidacy of six
politicians who were accused of having
called for independence, and has threat-
ened to take “follow-up action” against
othercandidateswhosupporttheidea.
Editorial Comment page 10
tion, set up to improve foreign percep-
tions of the country. It would make it
illegal for Mexico to use official cash to
fund the building of a border wall.
If Mr Trump tried to seize the $24bn in
annual remittances from the US to Mex-
ico to pay for it, the bill would allow Mex-
ico to retaliate by impounding the same
sum, probably through a tax on remit-
tancesheadingintheotherdirection.
Further, if Mr Trump tried to scrap the
1994 Nafta free-trade deal, credited with
creating one in three jobs in Mexico, it
would review all 75 bilateral treaties to
establish if they were in the national
interest. That includes the 1848 treaty
that ended the Mexican-American War,
which transferred a stretch of Mexican
territory to the US, including California,
Arizona,NewMexicoandNevada.
“We don’t want this,” Mr Barrios
Gómez said of the proposal. “But rip-
ping up Nafta and wrecking a carefully
forged relationship that goes far beyond
trade to security would be ‘mutually
assured destruction’.”
The unpopular Mr Peña Nieto was
excoriated in the Mexican media over
the Trump visit. Critics said he passed
up a golden opportunity to tell the US
billionaire to his face that Mexico would
never pay for the wall. “The only con-
vincing response to precise threats is to
stipulate by law what happens” if Mr
Trump wins the election and initiates
his plans, Mr Barrios Gómez said.
The bill’s backers hope for broader
cross-party support.
decade or two ago, companies that are
medium-sized and productive have a
more difficult time to expand. As a
result, large firms have become larger
and employ a bigger share of the work-
force than in the past. The source of the
concentration problem is unclear, and
the antitrust system may need to adjust
to address this problem.”
Slash regulation
New entrants into the business realm
may also be held back by the US’s laby-
rinthine regulatory system. Among the
changes being urged are a crackdown on
the occupational licensing system.
A quarter of workers require a licence
to do their jobs, with the share of work-
ers licensed at a state level up fivefold
since the 1950s. This affects professions
ranging from manicurists to interior
designers, hindering people’s ability to
move state and take up new positions.
Mark Zandi, chief economist at
Moody’s Analytics, says business may
also have been hit by the introduction of
the Affordable Care Act, and the new
suite of post-crisis financial regulation.
Yet he says companies struggle to define
exactly what regulatory barriers are
most onerous.
Tuesday 6 September 2016 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 6 September 2016

ARTS

the story of a young French veteran vis-

The Venice Reality iting Germany to pay his respects to a

fallen soldier and becoming emotionally
involved with the man’s parents and
fiancée (beautifully played by Paula

experience Beer). Against a background of linger-

ing European resentment that sadly res-
onates again, Ozon unpeels the layers of
a story laced with secrets and lies but
leaves one vital question intact.
Religion looms large in Venice,
At the Venice film festival, Raphael Abraham samples the best though God mostly stays out of it. Out of
of the first week’s offerings, from old-style musicals to sci-fi competition, The Young Pope introduces
Jude Law as a prickly American pontiff
determined to shake things up but

A
s the lights went on at this
year’s Venice Film Festival
they did so through a gloom
left by the earthquake in
Amatrice only a week
earlier: the first-night dinner and beach
party were cancelled to honour the vic-
tims. In the circumstances, the opening
film La La Land had a tough job to lift
the mood but could not have been better
suited to the task: this is a gloriously old-
fashioned musical in the vintage MGM
mould, complete with toe-tapping num-
bers, handsome stars and a Tinseltown
backdrop.
It begins in a traffic jam on a hot
sunny day in Los Angeles, with drivers
compelled to spring from their cars to
sing and dance atop them in an upbeat
inversion of REM’s video to “Everybody
Hurts”. Seb (Ryan Gosling) is a pianist
and jazz junkie with his head in the past;
Mia (Emma Stone)is an aspiring actress
stuck serving lattes. Initial antipathy
gives way to giddy abandon; the love-
birds court, kiss and burst into song.
Somehow the marriage of 1950s-style
musical idiom and contemporary set-
ting feels fresh — at one point a mobile
ringtone ingeniously provides the prel-
ude to the next tune. Gosling turns his
charm to max but it’s the suitably flame-
haired Stone, Ginger to his Fred, who is
the warm heart of this film, and she out-
shines all around her. She may just keep
shining till Oscar night.
The real surprise, though, is Damien
Chazelle. Surely this can’t be the same
writer-director whose debut was the
gruelling drumming drama Whiplash? In
one film it seems he’s gone from Thana-
tos to Eros. As its title suggests, La La
Land is hopelessly and hopefully roman-
tic, and for a while sugar levels start to
run dangerously high. But Chazelle, a
trained musician, knows when to shift
to a minor key. Just when the film seems
a half-step away from becoming toe-
curlingly corny he breaks the spell, and
threatens to dash hopes of a happy end-
ing. Still only 31, he plays the audience
like an old pro, and it’s impossible to
resist this sweeping stirring, lovesong to
music and the movies. What better way
to kick off a film festival.
Will this be the year redheads con-
quer Venice? Local girl Amy Adams
(born just up the road in Vicenza) fol-
lowed Emma Stone up the red carpet
with not one but two strong turns in
competition films. In the medium-cere-
bral sci-fi Arrival she plays a linguistics
expert called upon when 12 enormous
black alien monoliths land on Earth.
Adams and somewhat unlikely physi-
cist Jeremy Renner are the boffins sent
in to make conversation with the tower-
ing squid-like figures who dwell within
and speak by projecting an inky smoke
from their tentacles. The pair embark
on a crash course in “septapod”-speak
while the military itch to turn the visi-
tors into calamari. For once, however, in
a big-budget modern sci-fi, words are
allowed to speak louder than actions as
director Denis Villeneuve (Sicario)
emphasises atmosphere and finds
thrills in the humanistic rather than the
pyrotechnic.
Adams is even better in Nocturnal Ani-
mals, and so is the movie — in fact, mid-
way through the fest, it’s the best so far.
Adapting an Austin Wright novel, fash-
ion supremo Tom Ford surpasses all
expectations set by the style-saturated
A Single Man (2009). The new film is
not cut from the same cloth — in fact it
takes stylish trappings and strips
them bare. Here Adams plays Susan
Morrow, a wealthy art dealer who has it
all: chic modernist home, dashing
husband, crippling insomnia and creep-
ing despair.
Then arrives the manuscript of a
novel written by her ex-husband (Jake
Gyllenhaal), a brutal Funny Games-like
tale about a family harassed by thugs
that we see played out vividly in Susan’s
From top: Ryan imagination. Ford cuts between the two
Gosling and as the meta-text of a father’s living
Emma Stone in nightmare starts to seep into Susan’s
‘La La Land’; fragile waking state. It’s a masterly piece
Jake Gyllenhaal about cruelty, weakness and the pain we
and Michael inflict on each other bolstered by superb
Shannon in performances from Gyllenhaal and
‘Noctural Adams. Don’t sleep on this one.
Animals’; Paula Even in disappointing entries the
Beer in François women have shined. Derek Cianfrance’s
Ozon’s ‘Frantz’ The Light Between Oceans finds Sweden’s
Alicia Vikander growing as an actor
alongside subdued lighthousekeeper
plagued by personal demons. Paolo Sor-
rentino, making his first foray into TV,
brings with him the sumptuous visuals,
delectable black humour and narrative
audacity of his film work. Judged on its
first two episodes, The Young Pope is
something of an unholy mess tonally
and Law seems curiously cast but its
Religion looms large
though God mostly
stays out of it: Christ
makes his Virtual
Reality debut
Michael Fassbender. Born to pasty Aus- very unpredictability could make it
sies on a windswept coast but oddly compelling. Silvio Orlando (Il Caimano)
wearing a deep tan (call it Scandi- is magnificent as a scheming cardinal
bronze), Vikander emotes her heart out with moles both human and facial.
as a woman so desperate for mother- They’re all saints compared with Guy
hood she commits an unforgivable act. Pearce’s diabolical preacher in the
The trouble is, though, the story is too deeply unpleasant Brimstone. Set in a
obviously contrived to be convincing. Dutch Protestant corner of the Old
America threatened to dominate West, it finds him tormenting Dakota
Europe in the Venice Ryder Cup. Ger- Fanning at great length. Martin Kool-
man stalwart Wim Wenders weighed in hoven’s film has handsome cinematog-
with The Beautiful Days of Aranjuez, but raphy, fine acting and a reverse-chapter
this turned out to be a turgid affair in structure that suggests depths to come,
which a lot of hot air blows through a yet after 150 minutes of torture, child
summer garden overlooking abuse, incest and self-mutilation it all
Paris as a man and boils down to a repellent pile of pulp.
woman muse poetically Christ is here too, making his Virtual
on life, love and sex to Reality debut in a new section dedicated
no apparent end. to the nascent technology. There is some
Luckily François Ozon irony in putting on a headset to enter an
came to the rescue with immersive world when you’re in Venice.
Frantz. Set in Weimar-era Ger- Take off the headset, step outside and
many, this mostly black- you find yourself in what seems like a 3D
and-white, German-lan- fantasy landscape, with beauty and
guage outing is a mature architectural wonders at every turn. It’s
work from a director the Venice Reality experience and it
not always known for takes some beating.
his subtlety. It tells
To September 10, labiennale.org

Beauty recast as a historical beast

DA N C E
The Sleeping Beauty
Opéra Bastille, Paris
aaaae
Laura Cappelle
There is a pleasing irony about Ameri-
can Ballet Theatre’s performances of
The Sleeping Beauty in Paris: a company
whose history only dates back to the
1940s, bringing a historical reconstruc-
tion of one of the great 19th-century clas-
sicstothebirthplaceofclassicalballet.
Predictably, a few sneers have ensued,
but Alexei Ratmansky’s 2014 awaken-
ing of this Beauty has much to teach to
the old world. Painstakingly recreated
from Stepanov notation, a choreo-
graphic “score” from the early 20th cen-
tury, the production is as close as we are
likely to get to the work’s original form.
And it reminds us that the ballet is,
its happy peasants and gracious aristo-
crats, remains disconcerting at times.
The harmony that triumphs in Act III is
born of wisdom, however: Carabosse
returns to be a part of Aurora’s wedding,
signalling the reconciliation of opposite
forces. The result is both grand and
warm, subtle and simple.
On opening night, the production
appeared slightly flatter than it did in
New York, and the corps de ballet less
crisp. Cassandra Trenary, a young solo-
ist, was secure and vivacious as Aurora.
She will be a luminous addition to ABT’s
roster of stars but isn’t a finished prod-
uct yet as a ballerina; she and her Prince,
James Whiteside, occasionally over-
played their roles, betraying their
modern selves.
Still, Ratmansky is working wonders
with a company that until recently
lacked unity and style in the classical
repertoire. The speed and theatricality
he requires are shaping dancers (notably
the Prologue’s fairies) to be dynamic,
musicalandalivetothestoryonstage.
ABT would help its cause by taking a
second look at some of the costumes,
modelled after a 1921 Ballets Russes
production, which reinforce the notion
that this is a museum piece. Danced
well, it is anything but that.
operadeparis.fr
Cassandra
Trenary as
Aurora in
NBT’s ‘The
Sleeping
Beauty’
Ula Blocksage

first and foremost, a fairytale. The naive

simplicity of this Beauty requires the
suspension of our disbelief, but repays
us with a renewed sense of wonder. The
steps and combinations that Ratman-
sky unearthed, danced in period style,
are delightfully bright and unusual.
Mime abounds and seeps into set pieces
such as the wedding pas de deux, where
Aurora spells out her feelings.
The production’s earnest embrace of
the ballet’s class-based structure, with

T H E AT R E
Twelfth Night
Central Park, New York
aaaee
Max McGuinness
In a city with money on its mind, the
Public Theater’s annual open-air per-
formances of Shakespeare in Central
Park are an anomaly: the much sought-
after tickets are all free (with thanks to
assorted Fords, Mellons and Rockefel-
lers, of course). Now an offshoot dubbed
Public Works has begun devising “pag-
eants” in which professional actors are
joined by dozens of amateur non-actors
from various community groups.
Twelfth Night, where a shipwrecked
outsider passes herself off as a man and
charms the whole kingdom of Illyria, is
an obvious choice for a line-blurring
collaboration. Director Kwame Kwei-
Armah and composer Shaina Taub have
further mixed things up by replacing
most of Shakespeare’s text with songs in
the spirit of the play’s opening line: “If
music be the food of love, play on.”
As Feste, the court jester, Taub herself
performs many of these numbers with
magnetic fluency, intermittently man-
ning the keyboard. Countless backing
singers and dancers create an exuberant
atmosphere, aided by David Zinn’s
psychedelic design evoking New
Orleans during Mardi Gras.
Shaina Taub and Andrew Kober
The music tends to overwhelm the
action of the play itself, however, and
the principals Olivia (Nanya-Akuki
Goodrich), Orsino (Jose Llana) and
Viola (Nikki M. James) can seem a little
lost when delivering what’s left of their
lines. More impressive are Jacob Ming-
Trent as a laidback Toby Belch and
Andrew Kober as the hapless steward
Malvolio. His speech about the varieties
of greatness here becomes an extended
musical riff that adds a winning dose of
high camp to the proceedings.
By contrast, when not singing or
dancing, the amateurs can seem a bit
redundant. With more than 150 per-
formers credited, Kwei-Armah and
Taub might have been a bit more selec-
tive, or else figured out theatrically
necessary roles for their ensemble.
The mercenary world of New York
theatre could do with an Everyman-
type extravaganza where the street
becomes a stage. For now, Public Works
remains a laudable work-in-progress.
publictheater.org
Tuesday 6 September 2016 ★ FINANCIAL TIMES 7
8 ★ †
Hillary Clinton helped develop the ‘pivot’ to Asia and advocated a tough approach to Beijing. But a new
administration faces a choice between continuing the strategy or accommodating the region’s superpower.
H
illary Clinton watched as
the tension in the Hanoi
Convention Centre slowly
mounted. First, the Viet-
namese foreign minister
rose to criticise China’s actions in the
South China Sea. Then, one by one,
other ministers from the Association of
Southeast Asian Nations raised similar
concerns about Chinese bullying.
Sensing her moment, the US secretary
of state asked to speak to the regional
summit. For the first time, she
announced that Washington had a
“national interest” in freedom of navi-
gation and international law in the
South China Sea. The Chinese were
irate. Yang Jiechi, the foreign minister,
looked at Mrs Clinton and warned “out-
side powers” to stay out of the South
China Sea disputes. Turning to the other
countries, he fumed: “China is a big
country. And you are all small countries.
And that is a fact.”
Of the 956,733 miles Mrs Clinton trav-
elled and the 112 countries visited as
secretary of state, the 2010 Hanoi meet-
ing was in many ways the defining
moment of her tenure. And it provides a
valuable glimpse of the worldview that
the Democratic nominee would bring to
the White House if she wins the Novem-
ber election.
For the Obama administration, the
“pivot” to Asia is its signature foreign
policy initiative. After 200 years of pri-
marily looking east towards Europe, the
US decided that its main priority is the
Asia-Pacific region.
By inserting the US directly into the
arguments over the South China Sea,
‘The pivot’s architects
assumed that a merely
symbolic reassertion of US
power would be enough to
make China back off’
Mrs Clinton’s Hanoi statement was, in
effect, the launch of the pivot, the
moment the US declared to the region —
and to Beijing — that the US would not
sit aside as China tried to establish itself
as the regional leader.
The phrase itself comes from an Octo-
ber 2011 article in Foreign Policy maga-
zine by Mrs Clinton. In “America’s
Pacific century”, she talked about the
country being at a “pivot point”. While
President Barack Obama will use an
Asean summit in Laos starting today to
cement the pivot as part of his own leg-
acy, the reality is that it was very much a
joint project between the president and
the woman he hopes will succeed him.
For some US officials, including a few
angling for senior positions in a future
Clinton administration, the Hanoi
meeting is evidence that she would be
prepared to adopt a tougher approach to
China. In Beijing, the meeting rein-
forced the impression that she was the
principle China hawk within the Obama
administration.
“They have a good notion that the
chances of Mrs Clinton winning the elec-
tion are very high and so they will have
to deal with her,” says Douglas Paal, an
Asia expert who worked in the Reagan
and George HW Bush administrations.
“But every Chinese will say privately
they really don’t like her.”
These tensions set the stage for what
will be one of the central challenges fac-
ing the next president. The new, more
confrontational US approach, first sig-
nalled by Mrs Clinton in Hanoi, has not
persuaded the Chinese to abandon its
plans for the South China Sea. As a
result, the new administration will face
a choice between doubling down on the
same strategy or trying to find some way
to accommodate Chinese demands.
Offensive turn
From the outset of the first administra-
tion in January 2009, both Mr Obama
and Mrs Clinton were in swift agree-
ment that Asia would be a priority. Her
first major speech in office was at the
Asia Society in New York the following
month, when she spoke of “America’s
desire for more rigorous and persistent
commitment” to the region.
Yet there was also a desire within the
administration not to start off on the
wrong foot with China during the first
year, as so many new presidents had
done — especially given the crisis rip-
ping across the global economy.
It was with this in mind that Mrs Clin-
ton said ahead of her visit to Beijing, also
in February 2009, that she would not
make a big deal about human rights
because “we pretty much know what
By Geoff Dyer
The China hawk
Diplomatic concerns: Hillary Clinton
at Beijing’s Great Hall of the People
in 2012, above, and the USS Shiloh
docks in the Philippines during US
patrols of the South China Sea, below
Feng Li/Getty Images; Roberto Gonzaga/AFP/Getty
Republicans
Openings and anxiety over
Trump’s regional agenda
On the face of it, a President Donald
Trump would represent a major
opening for China.
One of the few common threads of
Mr Trump’s thinking about foreign
affairs is a deep scepticism about
America’s traditional allies and the
money Washington spends to defend
them. During his campaign, the
Republican nominee has threatened to
effectively tear up the US security
agreements with Japan and South
Korea — and even suggested Tokyo
FINANCIAL TIMES
FT BIG READ. US ELECTION
they are going to say” — a remark that
won her fierce criticism at home for
appearing to let Beijing dictate terms.
By early 2010, the administration
started to become less wary of offending
Beijing. Mr Obama met the Dalai Lama,
the exiled Tibetan spiritual leader, and
announced a package of arms sales to
Taiwan, while China was also lobbied to
back a UN resolution on Iran.
It was the South China Sea issue, how-
ever, that led the administration into a
much more direct confrontation with
China that year. US officials were
already worried about increased Chi-
nese naval activity in the area and the
absence of any diplomatic process to
resolve the various territorial disputes.
They began to suspect that China was
stepping up plans to try to exert control
over the South China Sea.
In her memoir Hard Choices, Mrs Clin-
ton says she started to become con-
cerned about the South China Sea at the
May 2010 Strategic and Economic Dia-
logue in Beijing. The Chinese started to
refer to the South China Sea as a “core
interest” alongside Taiwan and Tibet —
in other words, a subject on which there
could be no flexibility.
secure its own nuclear weapons. Such
proposals would upend the balance of
power by substantially reducing the US
footprint in north-east Asia. As an
opinion piece in China’s nationalist Global
Times noted earlier this year, “without
Washington’s support, Tokyo will be
unable to continue intervening in the
South China Sea and sustain its influence
on the Asia-Pacific region”.
But there is plenty in Mr Trump’s
rhetoric that would unsettle Beijing. He
has railed against China for gaming the
trade system and has warned that its
“days of currency manipulation and
cheating are over”. Lou Jiwei, Chinese
finance minister, described Mr Trump as
an “irrational type” when he suggested
“They warned that China would not
tolerate outside interference,” she
wrote. “On the flight home from Beijing,
I took stock with my team. I thought
China had overplayed its hand.”
The administration decided to start
calling out Beijing over its actions in the
South China Sea. Jeff Bader, then Asia
director at the National Security Coun-
cil, and former assistant secretary of
state Kurt Campbell prepared the
‘Obama wanted China’s
help on the Iran deal, he
wanted the climate deal. He
was willing to shelve other
issues to get them’
ground before the Hanoi meeting by
briefing governments that harboured
complaints about the Chinese. Over the
past few years, the US has expanded
security co-operation with Vietnam and
the Philippines, both of which are
involved in territorial disputes with
China, and backed a court case brought
by the Philippines. An international tri-
new tariffs on Chinese goods.
And while he has talked of
establishing more amicable
relationships with Russia and China,
and said little of substance about how
he would approach the South China
Sea disputes, Mr Trump has talked
about boosting military spending in
order to deter “Chinese adventurism”.
Whatever their misgivings about
Mrs Clinton, the Chinese leadership
has been dealing with the Democratic
candidate for more than two decades.
But Beijing knows little about Mr
Trump and the small group of people
advising him on foreign policy. At least
with Mrs Clinton, Beijing knows what it
would be getting.
bunal ruled in July that many of China’s
claims in the South China Sea were
unlawful.
For all their occasional disagreements
on the Middle East, Mr Obama and Mrs
Clinton were much more aligned when
it came to Asia. Indeed, the biggest com-
petition within the administration was
over who should take credit for the
strategy — the White House or the state
department — not over its ideas.
“There were times when Tom Donilon
[a former national security adviser]
thought she was too tough on China, or
Jeff Bader. But not Obama,” says one
former senior official. “He never really
had any romantic attachment to the
idea that we need to always have smooth
Sino-US relations.”
The one exception was over the case
of Chen Guangcheng, the blind activist
who took refuge in the US embassy in
Beijing in 2012 and who — after several
days of negotiations while Mrs Clinton
was in Beijing for a summit — eventually
received asylum in the US. According to
senior officials, Mr Obama was highly
critical of the state department’s deci-
sion to let Mr Chen into the US embassy.
Along with the Hanoi meeting, the
stand-off over Mr Chen was another
piece of evidence for those in Beijing
who believe Mrs Clinton to be a rela-
tively hardline voice about China, both
on security issues and human rights.
Indeed, Chinese suspicions about Mrs
Clinton date back to the 1995 World
Conference on Women in Beijing, when
she insisted that “women’s rights are
human rights and human rights are
women’s rights” — remarks that were
not broadcast in China.
As a result, many analysts in China
would expect a prospective Clinton
administration to be more willing to
confront Beijing. “She has always been
hard on China since her first visit in
1995,” says Chu Shulong, an interna-
tional relations expert at Tsinghua Uni-
versity. “That’s her style.”
Shi Yinhong, another international
Tuesday 6 September 2016
Plaudits poser The state department
and White House argued over who
should take credit for the Asian ‘pivot’
Trading focus One former US official
says Hillary Clinton would push China
more strongly on commercial issues
Activist’s case Beijing saw the support
for Chen Guangcheng as evidence that
Clinton is a bullish voice on China
relations expert at Renmin University,
agrees: “Hillary will be tougher on China
than Obama.”
From the start, the decision to push
back against China in the South China
Sea and the increasing US presence in
the region have won strong, bipartisan
support in Washington, where there are
few disagreements with the basic ideas
of the pivot. Within the administration,
the only real debate has been about the
pace of US naval operations in contested
areas in the South China Sea.
However the pivot has not been with-
out its critics. Hugh White, a former
Australian defence official and an influ-
ential observer on Asia, believes that the
US is not prepared for the huge risks and
costs that would be required to actually
shift China’s strategy.
“The pivot’s architects assumed that a
merely symbolic reassertion of US
power and resolve would be enough to
make China back off,” he argues.
“China’s assertive posture in the East
and South China Sea today is strong evi-
dence that they were wrong.”
Flawed deal?
So how would President Clinton act in
Asia? For all her input in defining the
Obama administration’s strategy to the
region, during the election campaign
she has turned against one of its central
planks, the 12-nation trade deal known
as the Trans-Pacific Partnership. (China
is not involved in TPP.)
Should Mrs Clinton win the election,
the ideal situation for her would be for
Congress to approve the trade deal
before her inauguration. But if that does
not happen, she would face the difficult
choice of whether to reopen an agree-
ment which she has described as central
to American influence in the region, but
which she now believes to be flawed in
practice. At the Asean summit in Laos
this week, Mr Obama will try to reassure
Washington’s regional partners that the
trade agreement still remains on track.
One former US official who worked
closely with the Obama administration
on China argues that Mrs Clinton would
push more strongly on commercial
issues and would be far less patient with
the restrictions Beijing places on doing
business in its own market.
“I don’t think she’ll be willing to park
the competitiveness agenda as it relates
to China to get, say, a global climate
deal,” he adds. “President Obama
wanted China’s help on the Iran deal, he
wanted the climate deal and he was will-
ing to shelve other more nettlesome
issues in order to get them.”
The sharpest dilemma would be on
the South China Sea. The approach Mrs
Clinton started to outline in Hanoi in
2010 was to pressure China to back
away from efforts to dominate the
region, by demonstrating the regional
and US opposition. Instead, Beijing has
plunged ahead full speed, dramatically
increasing over the past three years its
efforts to build artificial islands that
might one day serve as military bases.
Among Mrs Clinton’s Asia advisers,
the approach being debated is a slightly
stepped-up version of the Obama pivot
— a series of steps aimed at forging a
deeper network of allies and partners
that can act as a deterrent to China and
reinforce US ideas about trade and free-
dom of navigation.
The sorts of proposals being discussed
include having another aircraft carrier
permanently stationed in the region;
expanding missile defence in South
Korea; increased deployments to the
island of Guam; and sending more
planes and ships to the Philippines.
“They sound like small, incremental
steps, but over time they will add up into
a regional framework that can influence
China’s rise,” says one former official
advising the Clinton campaign. The
Clinton team is still betting, in effect,
that China has overplayed its hand.
Additional reporting by Tom Mitchell
Tuesday 6 September 2016 ★ FINANCIAL TIMES 9
10
TUESDAY 6 SEPTEMBER 2016
Hong Kong separatism: a
movement made in China
Beijing’s refusal to grant some autonomy to the territory is backfiring
Hong Kong’s student-led “umbrella
revolution” erupted nearly two years
ago as demonstrators took to the
streets to call for the right to vote for
their “chief executive” in accordance
with the limited democracy guaran-
teed the former British colony when it
was handed back to China in 1997.
The occupation of parts of central
Hong Kong lasted about three months
but in the end the protesters were left
empty-handed as Beijing refused to
compromise. Yet then even the most
radical among them did not advocate
full independence from the mainland.
Today, thanks largely to China’s
recalcitrance and its moves to “punish”
the city in the wake of those protests,
support for independence has entered
mainstream politics. On Sunday, six
candidates who openly support self-
determination were elected to Hong
Kong’s legislative council in the first
such elections held since the 2014 pro-
tests. They account for 15 per cent of
the 40 seats chosen by the public in
direct elections; the other 30 are cho-
sen by “functional constituencies”
composed of establishment groups
with close ties to Beijing.
The breakthrough came despite a
pre-poll crackdown from Beijing on
those it fears are pushing for outright
independence. Six candidates were
barred from standing even though all
but one signed a mandatory declara-
tion agreeing that Hong Kong is “an
inalienable part of China”. In rejecting
their candidacies, the government said
it did not believe their signatures were
sincere.
For those allowed to run, their cam-
paign materials were censored because
they included words such as “self-de-
termination” and “civil referendum”.
Some were blocked from opening bank
accounts to receive campaign contri-
butions. Without this interference it is
possible candidates favouring greater
Japan’s plea for clarity
on Brexit for business
The concerns raised by Tokyo are just as pressing for UK companies
After the initial shock of Britain’s vote
to leave the EU, businesses and con-
sumers appear to be regaining their
composure. In the aftermath of the ref-
erendum, indicators of economic activ-
ity plunged to their lowest levels since
the global financial crisis.
With a new government in place and
a fresh injection of monetary stimulus,
both manufacturing and the services
sectors have bounced back. Retail
spending and house prices have held
up. Although the weaker pound will
feed inflation and eat into household
budgets, it now looks more likely Brit-
ain will escape the Brexit-induced
recession that many had feared.
This resilience is a great relief, but it
is little guide to the long-term health of
the economy. The UK’s ability to pros-
per outside the EU depends primarily
on whether companies see it as a stable
environment to do business and can be
confident of a return on their invest-
ments. The strong warning delivered
by Japan’s government, detailing the
concerns of Japanese businesses oper-
ating in the UK, shows how challenging
it will be for Theresa May, prime minis-
ter, to provide such reassurance.
The point Tokyo most wants to
impress on the UK and EU is the need
to lessen the uncertainty. Japanese
businesses dread the prospect of end-
less behind-the-scenes negotiations,
leading to unpleasant last-minute sur-
prises. Their plea is for clarity on the
process and time for the transition.
This is eminently reasonable but, given
the EU’s record of eleventh-hour back-
room deals, somewhat optimistic.
The substance of the Japanese
memo, however, is a clear and rigorous
exposition of the concerns that busi-
nesses have about Brexit, and the ques-
tions ministers will have to answer to
give companies confidence to invest.
It is no surprise that tariffs on trade
in goods come high on the list. They are
autonomy would have ended up with a
third of the directly elected seats in the
legislative body. It is hard to imagine a
clearer indictment of China’s heavy-
handed approach.
China’s growing problem with Hong
Kong separatism is mainly self-
inflicted. The Basic Law, the territory’s
mini-constitution, stipulates that the
legislative council and the chief execu-
tive should eventually be elected
through universal suffrage. By effec-
tively ruling this out in 2014, Beijing
triggered the umbrella revolution: the
name derived from the use of umbrel-
las as a defence against police pepper
spray. China’s subsequent hardline
actions have allowed a growing self-
determination movement to take root.
Until now, advocates of Hong Kong’s
separation from the mainland had
been regarded mostly as fringe radi-
cals. But now that legislators favouring
eventual independence have entered
the council, their ideas may become
more mainstream.
The intransigence shown by China’s
ruling Communist party may reflect
what its leaders perceive to be in their
interest. After all, more democracy in
Hong Kong might encourage Shanghai
or Beijing to demand the same.
The rise of an independence move-
ment is a dangerous result of Beijing’s
inflexibility. Large parts of China’s ter-
ritory, notably ethnically diverse Xin-
jiang and Tibet, are home to separatist
movements that go back decades, if not
centuries. The rise of one in a territory
that is ethnically, if not linguistically,
the same as most of the rest of China
should be a wake-up call to Beijing.
The demonstration effect for the rest
of the region is powerful. If Beijing is
able to alienate its own citizens in a
former colony that only returned to the
motherland two decades ago, what
hope does it have of exercising “soft
power” beyond its borders?
a particular concern for manufacturers
whose supply chains stretch across the
EU, which could face levies on both the
parts and raw materials they import
and on the finished goods they export.
Yet this is just the first in a catalogue
of concerns. Manufacturers worry that
their products will no longer meet the
EU’s rules of origin, subjecting them to
more onerous customs procedures and
excluding them from free-trade agree-
ments between the EU and other coun-
tries. Service providers ask whether a
licence issued in the UK will still be
valid elsewhere in the EU. IT busi-
nesses fear cross-border data transfers
will become difficult if the UK adopts
its own rules on data protection. Banks
worry about the “passporting” of
financial services and the gradual
divergence of regulatory regimes.
All employers worry about impend-
ing controls on immigration, and what
this will mean for hiring and for exist-
ing staff, be they high-skilled profes-
sionals or construction workers.
This is the issue on which Mrs May
has been most forthcoming as she
begins to sketch out the parameters for
negotiations with Brussels, ruling out
the adoption of a points-based immi-
gration system some Brexit supporters
advocate. Yet it is far from clear that
her preferred approach would be
“softer”, or any more compatible with
continued access to the single market.
It is to be hoped that she will recog-
nise the real needs of employers facing
a period of unprecedented uncertainty.
Japan’s “requests” to the UK and EU,
which amount to a plea to maintain the
fullest market access possible, may be
little more than a wishlist. But the
questions it has raised are as pressing
for UK businesses as they are for for-
eign investors; and they will require
answers. The Japanese memo serves to
articulate the scale and complexity of
the task that lies ahead.
★ FINANCIAL TIMES
Balancing act on immigration is the right approach
Sir, The latest position of UK prime
minister Theresa May on Brexit is
a right step forward for British
democracy (“May rejects radical
shake-up of immigration rules for EU
citizens”, September 5).
While Mrs May has promised that
there will be control on immigration
after Brexit, which she has to do in
order to placate many of the Leavers,
she has now sensibly placed the
economic wellbeing of the UK and the
British people on an equal footing in
terms of importance.
It is clear that not everybody who
voted for Brexit did so because they
UK premier must specify
EU pullout ‘opportunities’
Sir, On her way to the G20 summit, UK
prime minister Theresa May declared
that Britain must take advantage of the
“opportunities” offered by leaving the
EU. As if in response, President Barack
Obama immediately made an
exceptionally straightforward
statement to her on her arrival in
China, confirming what he had implied
before the referendum — namely, that
he will prioritise a trade deal with the
EU over any trade talks with the UK.
At the same time, we now hear an
even more “brutal” declaration from
the Japanese, effectively stating that
their industries based in the UK
cannot remain here without the UK’s
continuing membership of the single
market and without the contingent free
movement of labour and capital
between the UK and the EU.
In the light of these totally
predictable responses from our two
most important trading partners
outside the EU, British businesses and
business institutions require, as a
matter of urgency, our prime minister
to spell out in considerable detail what
constitutes the positive “opportunities”
she had spoken of.
Stephen Porter
London W1, UK
Good luck with reversing
the referendum outcome
Sir, Jean-Claude Piris (“Article 50 is
not forever”, September 1) purports to
show how Brexit could be overturned.
Good luck with that. His case is partly
based on the proposition that, legally,
the referendum result is only advisory.
Yet parliament enacted a bill
delegating its sovereignty to the British
people by asking them to decide
whether to remain in the EU or not and
they decided not to.
We have no written constitution but
we do have constitutional conventions
and by now the constitutional
convention must be that the results of
referendums are always binding.
Is Mr Piris seriously suggesting that
parliament could overturn a vote for
Scottish independence after a
referendum? Constitutional lawyers
have to live in the real world.
Parliamentary sovereignty is a fine
doctrine but one that surely has been
amended by the use of referendums.
Finally, it is surely ironic that
“pro-Europeans” who for decades
have ridiculed the very notion of
parliamentary sovereignty should now
find it so appealing.
Professor Alan Sked
London School of Economics, UK
What the Bank
of Amy’s loan
book says about
India’s future
New Delhi
Notebook
by Amy Kazmin
Letters
wanted to keep EU immigration
completely at bay. Some people voted
to leave because they wanted the extra
£350m per week promised for the
National Health Service but
appreciated foreign nurses and doctors.
Farmers and fishermen who voted to
leave may have done so because they
were annoyed with EU’s agricultural
and fishery policies but still want
foreign workers to pick their crops or
go on the trawlers with them.
In short, it is safe to say that
definitely not all the 52 per cent
who voted to leave wanted a complete
clampdown on immigration, and
‘Sometimes I wonder what my
immigration points would have been’
Changing course on poll
verdict is a pipe dream
Sir, Jean-Claude Piris (“Article 50 is not
forever”, September 1) imagines a
world in which the UK changes its
mind after “a big political event such as
the election of a new government, a
new referendum or second thoughts
about the decision to leave”. Dream on.
The referendum was “consultative” in
the same way that Don Corleone
merely provides suggestions.
Max Thowless-Reeves
Fradswell, Staffs, UK
World Bank is on track to
meet efficiency gains goal
Sir, Your article, “Fractious World
Bank shake-up yields only half $400m
target” (August 30), is perplexing. The
audit committee of the World Bank’s
board of executive directors this year
requested that the bank’s independent
internal audit department conduct a
review of the savings measures and
other goals of the expenditure review.
We understand the audit
department’s key findings were shared
with the Financial Times before
publishing the article, showing the
bank is on track to meet its goal of
$400m in gross efficiency gains.
The review found that 64 per cent of
the estimated ER savings has already
been gained as of the 2016 fiscal year,
with gross savings to reach 95 per cent
by FY17 and completed by FY18. We
are satisfied with the measures
management has taken, which are
making the bank a more efficient and
financially sustainable institution.
Jorg Fielden
Executive Director for Azerbaijan,
Kazakhstan, Kyrgyz Republic, Poland,
Serbia, Switzerland, Tajikistan,
Turkmenistan and Uzbekistan,
World Bank, Washington DC, US
Something unexpected has happened
over the past few years. Inadvertently,
and reluctantly, I became one of
India’s many unregulated
moneylenders. At its peak, the Bank
of Amy had a portfolio of four loans,
with a total credit of more than
$12,000 extended to my small-time
borrowers.
My loans have been free of interest,
with flexible repayment schedules.
Twice my money was used to pay off
the truly mercenary underground
moneylenders that normally provide
the bulk of credit for working-class
urban Indians trying to get ahead or
cope with unexpected shocks.
My portfolio offers insights into the
lives, aspirations and difficulties of the
urban workers on whom the nation’s
future rests.
These are not the poorest families
struggling to survive but lower middle
class aspirers, who use family
planning, send their children to low-
cost private schools and try to
establish a toehold in Delhi’s tough
property market.
My first loan was to an office driver
whose family won the right in a lottery
to buy a flat built by a government
housing agency on the city’s outskirts.
Such flats are highly sought after,
including by property speculators, as
their purchase price is well below
their potential resale value.
For his down payment, the driver
took out a loan against his wife’s gold
jewellery. But he was still short so I
gave him a $500 top-up. He steadily
repaid me, and I later gave him a
certainly not so if it will inflict huge
damage to the UK economy.
In other words, the percentage of
Remainers plus those Leavers who
voted out but still favour some form of
EU immigration in exchange for single
market access has to be greater than
50 per cent.
Therefore, for democratic reasons,
Mrs May is right not to pander only to
the demands for a hard Brexit but to
also take into account the wishes of the
majority of the population who are
Remainers and soft Brexiters.
Yang-Soon Lee
London SE1, UK
Debate on regulation
springs a surprise
Sir, With the comfortable predictability
of the tides, Martin Wolf (“Democratic
capitalism in peril”, August 31) was
arguing again for the further political
regulation of business. “ . . . Economic
policy must be orientated towards
promoting the interests of the many
and not the few, in the first place would
be the citizenry, to whom the
politicians are accountable.”
Yet on September 2, a Martin Wolf
column energetically rejects extensions
of government control over the
undeniably elitist and elite-producing
UK university system on the grounds
this would jeopardise their superb
competitive results in international
competition via a “proposed solution,
so characteristic of the modern state
[of] regulation. In place of internal
mission comes external monitoring.”
Where is the real Martin Wolf, what
have you done with him? Shouldn’t you
at least change the photograph?
Paul J Isaac
Arbiter Partners,
New York, NY, US
Reforms serve to put
universities in peril
Sir, Martin Wolf’s article (“The reform
of Britain’s universities is a betrayal of
Conservative principles”, September 2)
is spot on. The legislation, like the
green and white papers that preceded
it, is a crude, uninformed and
ultimately ideological attempt to
portray universities as supply-side
oligopolists. Yet our universities have
never faced such strong competition,
or such an unsympathetic official
attitude to the flow of income from
overseas students that keeps them, and
their all-important research, afloat.
What is perhaps more surprising —
at least to those who have not followed
them for many years — is why vice-
chancellors appear to be going along
with the government. Are the truly
marginal fee rises on offer sufficient to
compensate them for the loss of
autonomy and increased bureaucracy
and state control that these policies
entail? Is there no limit to the amount
of status competition vice-chancellors
are prepared to engage in?
As Mr Wolf says, it is extraordinary
that a Conservative government would
wish to put in jeopardy one of our few
truly world-class sectors for what are at
best contingent and trivial gains (other
cases spring to mind).
Roger Brown
Emeritus Professor of Higher Education
Policy, Liverpool Hope University,
Southampton, Hants, UK
second loan to cover further expenses
linked to his flat. His repayments then
became more erratic, as his mobile
phones grew bigger and fancier. Once
his second one was paid off, I told him
no more loans from me.
My next was bigger and more
impulsive. The woman I’d hired to
help care for my baby daughter told
me that her family had a “bank loan”
on which they had to pay $100 per
month — for interest alone. Paying
down the principal required them to
cough up additional funds. Puzzled, I
asked for the loan papers.
The papers confirmed my
suspicions. In his efforts to buy a small
flat, the nanny’s adult son — a
musician, with whom she lived — had
borrowed $5,500 from a moneylender
at the standard rate for that sector of
nearly 2 per cent per month. The idea
of my baby’s carer being in hoc to
creditors notorious for hardball tactics
against vulnerable defaulters freaked
me out.
Within a week, I’d given her the
cash to pay off the moneylenders in
full and the house papers were with
me. It took the nanny four years to
repay me. But had I not intervened
the family would still be in heavy
debt, probably for years to come.
The third loan, which I resisted
before succumbing to persistent pleas,
was about $3,400 for the nanny’s
married daughter and her husband, a
hospital lab clerk, to buy a small plot
of land to build a house.
That loan was paid off this weekend
— to our mutual delight — but they
Tuesday 6 September 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address
Corrections: corrections@ft.com
Reclassification of debt in
Venezuela is on the cards
Sir, As the end game for the
Chávez/Maduro regime approaches,
and in the wake of the success of
Argentina’s holdout creditors earlier
this year, Venezuelan creditors holding
older bonds believe that despite the
ongoing economic and political
instability they will still be paid in full,
according to John Dizard’s column
(“Chaos reigns as Caracas makes every
effort to please foreign bondholders”,
September 3). This is so because of the
absence of collective action clauses on
these older bonds that were issued
under New York law, such as the
“Vennie 2027”. Not so fast.
With regime change favourable to
the US in particular and the west in
general, and continuing economic and
political stress resulting from the low
oil-price environment, expect a
successor Venezuelan government to
make the case for partial debt
repudiation or significant debt
restructuring by engineering a
reclassification of outstanding
Venezuelan debt as “odious debt”.
In international law, odious debt is
a legal theory which holds that debt
incurred by a regime for purposes that
do not serve the best interests of the
nation should not be enforceable.
Ira Sohn
Professor of Economics and Finance,
Montclair State University,
Upper Montclair, NJ, US
US foreign policy dictates
that Orban is a fall guy
Sir, Your obituary for Islam Karimov,
president of Uzbekistan (“Implacable
dictator whose brutality kept him in
power”, September 3) is a reminder of
the moral double standards of US (and
western) foreign policy.
As you suggest, Karimov ruled his
country with brutality for nearly three
decades. Because of his atrocious
human rights record and ruthless
crushing of any political dissent,
Karimov became an international
pariah. Indeed, the US overreaction to
9/11 was a godsend for him, given his
country’s proximity to Afghanistan.
After 9/11, President Bush
welcomed Karimov to the White
House, allowing Central Asia’s nastiest
despot to reap big political and
economic benefits from the US war in
Afghanistan. In exchange for leasing
rights on a military air base in
Uzbekistan and logistical support for
western military supplies to
Afghanistan, Karimov suddenly
became a good boy in Washington.
Fast-forward 15 years to March 2016
when Azerbaijani President Ilham
Aliyev, the authoritarian leader of an
oil-rich country, is welcomed in
Washington by vice-president Joe
Biden, secretary of state John Kerry
and congressional leaders. In a smart
move, Mr Aliyev freed 10 per cent of
the country’s political prisoners before
his visit.
Now enter prime minister Viktor
Orban of Hungary, an ally of the US.
During six years in office, Mr Orban
has not been invited to the White
House for a single bilateral discussion.
Why? Because of Hungary’s
“democracy deficit” under Mr Orban.
This is double standards. This is what
happens when US foreign policy values
military co-operation and oil politics
above else.
Istvan Dobozi
Gaithersburg, MD, US
still have a bank loan for the same
purchase to repay, and it may be years
before they have the money to
construct the house.
My last borrower, a demure former
call-centre worker in her late twenties,
is the most tragic. I met her in 2011
through an overseas friend who had
employed her mother as a nanny in
Delhi in the 1990s. The former nanny,
a widow, was stricken with cancer and
had been turned away from the
overstretched government hospital.
She was now seeking costly private
treatment.
I facilitated a contribution from my
friend; others also stepped up. Yet,
after the woman’s death in 2012, I
learnt her daughter still had $2,000 in
debts to moneylenders related to the
treatment. As with my own nanny, I
refinanced the young woman’s debts
so she could repay the moneylenders
in full then slowly repay me at her
own pace. Her debt was dwindling;
but then it turned out her husband
needed surgery so I have given
another $2,000.
Narendra Modi, prime minister, and
Raghuram Rajan, the central bank
governor who has just left office, have
tried to promote better access to
formal financial services, including
credit, to those long shunned by the
regulated banking sector.
Such initiatives could transform
many lives. But I suspect it will be
quite a while before the Bank of Amy
can shut its doors for good.
amy.kazmin@ft.com
Tuesday 6 September 2016
POLITICS
Janan
Ganesh
T
he government, it turns out,
will govern. By scotching
talk of a general election
any time soon, Theresa
May has restored the nor-
mal business of state after its prolonged
hiatus for the Scottish referendum, last
year’s election and the popular vote on
Europe. The prime minister is also giv-
ing the British people a break from
democracy before the onset of decision
fatigue and probably saving the opposi-
tion Labour party’s life into the bargain.
As an act of monkish self-denial, it is
underrated. If an election this year or
early next threw up the kind of parlia-
mentary majority implied by current
polling, Mrs May could expect to rule
for 10 years. Given that she was a mere
home secretary hiding in plain sight as
An exam paper from the future
FOREIGN AFFAIRS
Gideon
Rachman
J
ournalism is sometimes said to
be the first draft of history. This
article is the first draft of a his-
tory exam for students gradu-
ating in 2066. I have tried to
imagine the questions future historians
will ask about today’s political events.
To make the exercise more interest-
ing, readers are invited to answer any of
the questions below, from any section of
the paper, and to send answers to
essayquestion@ft.com. The three most
interesting essays will be published
online in the Financial Times. Answers
should be received by September 20.
Candidates will notice that while
some questions can be answered on the
basis of currently available knowledge,
others may require a degree of specula-
tion about the future. Where appropri-
ate, authors are allowed to use their
imagination and intuition to fill in some
details about events yet to unfold.
Answers should between 700 and 900
words. You have one hour.
Section A: The US
1. “The orderly management of
decline.” Discuss this verdict on the for-
eign policy of President Barack Obama.
2. A great social reformer or a great
disappointment? Which is the fairer
verdict on the presidency of Mr Obama?
3. Why did the Bush and Clinton clans
have such a grip on American politics
between 1988 and 2020?
4. Donald Trump was not an accident
but the logical culmination of long-term
trends in politics and society. Discuss.
Section B: Europe
1. Brexit was a symptom, but not a
fundamental cause, of the decline of the
EU. Discuss.
2. Why was the “European project”
unable to provide the definitive answer
to the German question?
Two myths lie at the heart of Apple’s manufactured tax crisis
OPINION
Edward
Kleinbard
O
n one hand, we have Apple
and its allies in the US
Treasury furiously apply-
ing their spin to the Euro-
pean Commission’s “state
aid” ruling against the company. On the
other, we have the fact that the underly-
ing issues are complex, falling at the
juncture of two legal areas — competi-
tion law and tax — that rarely come into
contact. Put these facts together and the
result is widespread misunderstanding.
It is time to puncture two myths in par-
ticular that have gained currency.
The first myth is that of the suprana-
tional tax bully. In this tale, the commis-
sion has abandoned the rule of law. It
has encroached on member state tax
matters — which, under EU treaties, are
The folly of May’s electoral self-denial
recently as June, no politician will have
won so much power so quickly and to so
little resistance from rival colleagues or
the formal opposition.
The absence of an election gives res-
pite to a country that has been locked in
a queasy campaign setting for three
years and which, at least in England,
feels one landslide away from becoming
a single-party state. It is harder to see
what is in it for Mrs May. There are no
prizes for magnanimity. In return for
passing up a long-term title to Downing
Street, she gets the transient illusion of a
quiet life. She will not have to find a way
around the Fixed-term Parliaments Act
or define a programme for government
or spell out the meaning of Brexit
beyond the tautology she currently
favours. But the second and third of
these burdens are unavoidable over
time, election or no election.
The self-help industry teaches us to
preserve hope when life seems bleak but
the opposite feat — vigilant realism in
good times — is harder to pull off. Mrs
May has to see that her current pomp is
built on smoke. She will not always be a
3. Why did the French become
obsessed with their own decline in the
early 21st century?
4. A worthy successor to Adenauer
and Kohl: discuss this verdict on Angela
Merkel.
5. Why was the euro such a disaster
for southern Europe?
6. Was Vladimir Putin a good or a bad
tsar for Russia?
7. Why did Turkey turn its back on the
legacy of Ataturk?
Section C: The Middle East
1. Why did the Arab spring happen
and why did it fail?
2. From 2011, the people of Syria were
the victims of outside powers more than
their own government. Discuss.
3. How much of a threat was post-rev-
olutionary Iran to the Middle East and
to the world order?
4. A Faustian bargain: discuss this
verdict on the US-Saudi relationship
I have tried to imagine
the questions that future
historians will ask about
the political events of today
before and after 9/11.
5. Was the Israeli-Palestinian conflict
at the core of the problems of the Middle
East after 1989 or a distraction from the
real issues?
Section D: Asia
1. Why did Asia’s great powers
become obsessed with the possession of
uninhabited islands and reefs during
the early 21st century?
2. The maintenance of Communist
party rule was essential to the develop-
ment of China between 1978 and 2016.
Discuss.
3. Why did China become more not
less authoritarian under Xi Jinping?
4. Why did China and eastern Europe
take such different paths after 1989, and
what were the consequences for the glo-
bal order?
5. Did Narendra Modi represent a new
India?
generally the purview of member states
alone — by substituting its tax judgment
for that of the competent tax authority.
As the US Treasury wrote the day before
the decision to require Ireland to impose
a €13bn back tax bill on Apple was
announced: “This . . . approach
appears to expand the role of the [com-
petition directorate] . . . into that of a
supranational tax authority.”
This tale is raw meat to protectionist
US legislators. But it is false. The heart of
the case is simply that Ireland gave
Apple hidden subsidies in exchange for
jobs. The only tax connection is that Ire-
land harnessed its tax system as the
instrument to deliver these subsidies.
Imagine Dublin promised Apple
€220,000 in cash annually for every job
located in Ireland. At 6,000 or so jobs,
this totals about €13bn over 10 years.
This would clearly constitute state aid,
and coincidentally a bad trade for Ire-
land. The commission in essence con-
cluded that this is the deal Ireland
agreed — but, instead of collecting tax at
the Irish 12.5 per cent tax rate and writ-
★ FINANCIAL TIMES
Comment
novelty with the benefit of the doubt,
enemies of the EU will not always be
patient, defeated pro-Europeans will
not always be gracious, Labour will not
always be harmless, her backbenchers
will not always be docile, the economy
will not always be perky. Trouble will
find her, and she should meet it with a
protective mandate of her own.
Her majority in the House of Com-
The prime minister has no
reason to demur. A quick
election could keep her in
power until she is bored
mons is the same 16-seat sliver that,
under David Cameron, her predecessor,
dissolved every time MPs took against a
reform to tax credits, pensions or
schools. And he had the moral authority
that came from having earned that flaky
margin himself. Mrs May is diving into
the saga of European extrication, which
will leave half the country feeling raw
ing cheques to Apple, Ireland forgave
substantially all of Apple’s Irish statu-
tory tax liability.
In tax policy we understand the eco-
nomic equivalence between govern-
ment cash subsidy schemes and “spend-
ing through the tax law”, where targeted
spending programmes are couched as
highly selective tax breaks, usually to
The company and Ireland
reverse engineered a
methodology to yield an
agreed minimal tax take
hide their true nature. The commis-
sion’s decision makes clear it does too. It
does not quarrel with Ireland’s 12.5 per
cent tax rate.
What makes this a state aid case
rather than a tax one is that there is no
plausible explanation for Ireland ceding
its tax authority other than its under-
standing that jobs would follow. The
and many others disillusioned, without
so much as a meaningfully contested
Tory leadership election by way of per-
sonal endorsement.
There is no problem of principle
here: constitutionally, Mrs May is as
much the prime minister as Mr Cam-
eron ever was. The problem is that inef-
fable thing we call the smell test. If peo-
ple sense something rum about a gov-
ernment doing big things without a
direct democratic licence, they will
push back, whatever Walter Bagehot
would say of their grievance. The House
of Lords — presumptuously, but there it
is — will feel freer to stymie this prime
minister than her elected forebears, for
instance. The media, already flum-
moxed by a woman who rose without
their help, will ask who this imposter
thinks she is as soon as she does any-
thing to disappoint them. Why give
them the excuse?
Not all political lives end in failure but
all premierships start in success. Any-
thing a new prime minister says, how-
ever bland and weightless, is received
like scripture. A fairer Britain, more
parties reverse engineered a methodol-
ogy to yield an agreed minimal tax take.
The second myth is that the income in
question belongs to the US. The US
imposes a 35 per cent tax on the income
of a US company’s foreign subsidiaries
when that income is repatriated to the
US parent as a dividend. Both Jack Lew,
US Treasury secretary, and Apple argue
this principle means that only the Inter-
nal Revenue Service has a legitimate
claim to Apple’s $230bn in largely
untaxed offshore cash.
This is a misstatement of US law. For
nearly 100 years the nation has followed
the principle that the jurisdiction in
which income arises (the “source juris-
diction”) has priority in taxing cross-
border income. To prevent double taxa-
tion, a US company can claim a credit
against its US tax bill for levies already
paid to source countries. So US tax on a
dividend repatriation is a residual liabil-
ity of the company, payable only to the
extent that source countries have not
first taxed the income.
Here the commission argues Ireland
industry, something about cabinet gov-
ernment: this spiel still works, even
though we heard it from Mr Cameron in
2010 and Gordon Brown, then Labour
prime minister, in 2007. We are as cred-
ulous now as we will be vicious later.
Unlike her predecessors, Mrs May can
cash in on this temporary suspension of
normal politics without any material
risk to herself. Mr Brown never recov-
ered from his vacillation of nine years
ago, when he ducked an election he had
openly mulled all summer. But it was a
much harder decision. He already had a
majority four times as large as Mrs
May’s and, though banks would fall a
year later, no controversial plans for
government.
Mrs May has no such reason to demur.
A quick election could keep her in
power until she is bored. Of course, we
have had enough politics in recent years
but, seriously, look at the work that
awaits her. The point about a mandate is
not that she should want one. She will
need one.
janan.ganesh@ft.com
6. The most important fact in global
politics from 1980 onwards was the
growing economic power of Asia.
Discuss.
7. A brave but doomed venture: dis-
cuss this verdict on Abenomics.
8. Why did the world’s great powers
allow North Korea to develop nuclear
weapons?
Section E: Africa and Latin America
1. How “new” was the new South
Africa?
2. Why was Africa the first continent
to become the subject of a contest for
influence between China and the US?
3. Oil was a curse not a blessing: dis-
cuss with reference to either Nigeria or
Angola in the early 21st century.
4. Why did Hugo Chávez become an
icon for the global left?
5. “Brazil is the country of the future
and it always will be.” Was this a fair ver-
dict between 1950 and 2016?
6. Was proximity to the US a blessing
or a curse for Mexico from 1980
onwards? Discuss with reference to
other Latin American countries.
Section F: General
1. Why did the “end of history” only
last for 20 years?
2. Is neoliberalism a useful term for
understanding the political economy of
the early 21st century?
3. Is neoconservatism a useful term
for understanding US foreign policy in
the early 21st century?
4. Did globalisation lead to the crea-
tion of a global oligarchy?
5. Why did globalisation not kill
nationalism?
6. Why was the rise of social media so
disruptive to conventional politics?
7. Did climate change demonstrate
that a world of nation states and demo-
cratic politics was incapable of meeting
the challenges of the 21st century?
8. The International Criminal Court
represented the high tide for the inter-
national legal system. Discuss.
9. Will a machine ever be able to
answer these questions better than a
human?
gideon.rachman@ft.com
exercised apparently inexplicable for-
bearance in not collecting tax to which it
was entitled — except for the promise of
jobs. The remedy is to force Apple to pay
the Irish tax that should have been col-
lected on the income earned by its Irish
subsidiary. This is source country tax to
which Ireland clearly has the first claim.
The US could have argued that it, too,
was a source country on the basis that
Apple Cupertino was inadequately com-
pensated by Apple Ireland for develop-
ing the magic that makes the Apple eco-
system so irresistible. But there appears
to have been little headway here. The
Treasury now seeks to atone for its
domestic failures by bullying its way to
the front of the line of tax claimants
when it should be at the back.
The myths being spun by Apple and
the US Treasury threaten to fracture
international tax administration comity
— confecting a tax crisis where none in
fact exists.
The writer is a professor of law and business
at the University of Southern California
11
Merkel seeks a
swift answer to
the populist
problem
OPINION
Nikolaus
Blome
T
he state of Mecklenburg-
Vorpommern is something
of a backwater. Otto von
Bismarck is said to have
quipped that, if the world
was about to end, he would move to
Mecklenburg as it would take a further
50 years for the apocalypse to arrive
there. Yet the election to its state legisla-
ture put this rural corner of northeast-
ern Germany at the heart of a long-over-
due debate.
Chancellor Angela Merkel’s Christian
Democrats (CDU) finished third in Sun-
day’s poll behind the rightwing populist
Alternative for Germany and the Social
Democrats (SPD).
The question is how to deal with the
AfD now it is here to stay. The difficulty
is that this is a party to which many of
the usual rules of German political life
do not seem to apply.
Normally, voters shun parties whose
top officials publicly fight among them-
selves. Not so with the AfD. Public mud-
slinging among party leaders does not
appear to be putting people off. Moreo-
ver, voters normally abandon their sup-
port for anti-establishment parties once
a particular problem is solved or is no
longer at the top of the political agenda.
This is what happened in the early
summer of 2015 when the crisis in the
eurozone was solved, for the time being
at least, with a third bailout deal for
Greece. The AfD’s opinion poll ratings
went down almost immediately. Not so
this time. The massive influx of refugees
and migrants from Syria and elsewhere
in the Middle East has long since slowed
to a trickle yet the AfD is still going
strong.
This is bad news for Ms Merkel. Her
style is pragmatic rather than emotional
or charismatic. But it is emotion and
fear that are fuelling the rise of the AfD,
and the chancellor appears to have no
answer to it. Nevertheless, she will not
The massive influx of
refugees from Syria has
slowed to a trickle yet the
AfD is still going nowhere
budge. Last week, she reaffirmed her
refugee policy. “I don’t regret anything,”
she said in an interview with the Bild
newspaper.
In the wake of the CDU’s third place in
Mecklenburg-Vorpommern, party offi-
cials, as well as ordinary members, are
getting nervous. They ask anxiously
whether the party can still win elections
with Ms Merkel at the helm.
At the same time, adding to the sense
of helplessness, they know that there is
no obvious or plausible alternative to
her. Win or lose, the party is chained to
Ms Merkel, who will urge her colleagues
and supporters to be patient. In Decem-
ber, a CDU convention is supposed to re-
elect her as party leader. It is highly
likely that she will use the occasion to
announce her intention to run for the
chancellorship again.
In short, the AfD is not going away and
nor is Ms Merkel. So the CDU must
decide whether the taboo on coalition-
building with the AfD will be perma-
nent. The discussion in the party will be
painful, as much as the one the SPD had
to undergo when the formerly commu-
nist Die Linke party did not vanish after
reunification in 1990.
Bringing the AfD into the fold might
be a way to defang a populist movement
that is clearly anti-establishment and
xenophobic. AfD officials say openly
that they do not want to be in govern-
ment but they cannot explain why.
Pressing them on this point might be a
more effective way of draining support
for the populist party than any of the
other strategies that the CDU has
attempted.
Unfortunately, Ms Merkel is not a par-
ticularly daring or audacious politician.
In all likelihood, she will try to keep on
doing business as usual instead of
broaching the delicate subject of coali-
tion or co-operation with the AfD.
The chancellor might even tacitly
count on the AfD entering the Bun-
destag after the elections in autumn
2017 because, if it does, it will be mathe-
matically impossible to construct a gov-
erning majority without her and the
CDU. The paradox is that a strong AfD
will probably help Ms Merkel stay in
power for another term.
The writer is deputy editor-in-chief of Bild
12 ★ FINANCIAL TIMES Tuesday 6 September 2016

Great expectations
Commodity price deflation has undermined the Bank of Japan's 2 per cent inflation
objective. But public expectations are higher than before the BoJ resumed quantitative
easing in 2013 and could easily rise again as these headwinds dissipate

Twitter: @FTLex Email: lex@ft.com Inflation and outlook 30-year JGB price
Share of public who think Rebased
CPI total* (annual % change) prices will increase over
CPI ex-food and energy* (annual % change) the coming year (%) 160
smaller stores, diversifying away from 2.0 90
UK grocers: food, imitating the discounters’ smaller
Shipping:
cheap meat 1.5 80 enough already
product lines — all are being tried and
all will help, but not much. 1.0 140
Brexit schmexit. Everything is fine. To The UK’s economy may turn up. This 70 Markets can give confusing signals.
wit: the biggest-ever month to month will not help its grocers. 0.5 Last week, creditors decided not to
jump in the UK Services purchasing 60 extend new loans to Hanjin Shipping,
managers’ index. Not only does this 0 sending the stock down one-quarter.
indicate expansion but it is — says IHS 50 Yesterday, on reopening after a
Markit, which conducts the survey —
Telefónica: -0.5 120
three-day trading halt, its shares
suggestive of “rising inflationary positive diagnosis -1.0
40 dropped as much as 30 per cent.
pressure linked to the weak pound”. Despite Hanjin filing for bankruptcy,
For those of you under 35, “inflation” Affluenza — a portmanteau of -1.5 30 the shares then rallied, at one point
is when prices go up. A little of it is affluence and influenza — is the into positive territory, before closing
good news when economic decline is a diagnosis when rich individuals spend -2.0 20 100 down 13 per cent. More downside looks
worry, as it is now. Hurrah, then. Of pointlessly. Corporations suffer it too. likely. Even if Hanjin was rescued, its
2010 11 12 13 14 15 16 2013 14 15 16
course, this and other recent surveys Given an excess of cash flow, some shareholders would be wiped out.
FT graphic Sources: Thomson Reuters Datastream; Bank of Japan *Excluding effect of consumption tax rise
“point to a stagnation of the economy cannot help spending, hoping to lift Some kind of bailout for Hanjin is
so far in the third quarter”. Stagnation their share prices. Low-growth, cash possible. The pain inflicted on South
beats decline, though, and the size of flow-rich European telecoms are Mervyn King, former Bank of 2 per cent, making it more likely. failed, but there is a chance of both Korea’s leading conglomerates by a
the jump suggests that the trend in susceptible. Spain’s Telefónica has had England governor, once compared his Yesterday Mr Kuroda bemoaned a lack actual and expected inflation rising. cessation of its operations may be too
PMIs, steadily south since 2014, could a prolonged bout. Treatment becomes performance to Argentine footballer of such advantage. He took up his post Thirty-year bond yields of just 50 much to bear. Analysts estimate that
have bottomed out. progressively more urgent as debt Maradona dancing through England’s in 2013 with public expectations of basis points refute this. Shorting the company carries as much as 40 per
News of higher prices has not rises to prohibitive levels. defence. His point was that he could deflation entrenched. Although his Japanese debt because yields “can go cent of Samsung Electronics’ exports;
reached the grocery industry. On the Spain’s incumbent operator has hit an inflation target while doing efforts yanked up inflation for a while, no lower” was christened the LG says that Hanjin carries one-fifth of
same days as the dizzy PMI survey, made some big acquisitions since very little. Haruhiko Kuroda, Bank of Japan then ran into global deflationary “widow-maker trade” for the its goods. Since the banks made their
Morrisons, the fourth-biggest grocer in 2013, such as German mobile company Japan governor, must explain the headwinds such as slumping energy disastrous losses it caused. When one move, at least half of Hanjin’s ships
the UK by market share, announced E-Plus and the Brazilian fixed-line opposite: having flooded the bond prices. Since the public develops man takes on a $12tn market, you have been denied entry to ports
price cuts covering a range of meat and business GVT. Some €8.2bn has left market with yen and cut rates below expectations “adaptively” — they look back the market — usually. But concerned about receiving payment or
produce. This will cheer carnivores Telefónica’s wallet for acquisitions zero, why is core CPI inflation at at how prices have behaved, as well as Mr Kuroda has a printing press, indefinite occupation of berths while
(gammon joint will be nearly 20 per in three years. Little has come in. minus 0.5 per cent, a long way from what central bankers promise — this political support and the inflation creditors wrangle over vessel
cent cheaper; pass the mustard). It is Meanwhile, its Latin American units, his 2 per cent target? knocked the BoJ off course. expectations of more than 100m ownership. Should this continue, the
dour news for the industry. hit by economic recession and weak What separates Mr King’s seeming But commodity prices bottomed Japanese consumers. repercussions may spread.
Shares in Morrisons and larger currencies, have added less revenue virtuosity from Mr Kuroda’s apparent some months ago, and Mr Kuroda’s Throw in some overdue good luck But even if bailed out, do not expect
peers Tesco and Sainsbury reflected than expected to the group’s coffers. failure is expectations. Ten years ago, past efforts have not gone to waste: in the form of a tailwind from rising much value from the company’s
indifference nonetheless. The news was The balance sheet is bloated. Net 2 per cent inflation was consistent Japan is nearer full capacity, with oil prices, and yields could easily rise shares, which are already down 90 per
predictable after Asda (number three debt is nearly 4 times this year’s with substantially positive interest unemployment near historic lows and a percentage point. This means a 25- cent since 2012. Net debt amounts to
in the market, owned by Walmart) estimated earnings before interest, tax, rates. Expecting the target to be hit, real wages rising six months in a row. point fall in the typical 30-year bond. nearly $5bn, dwarfing equity of $730m.
reported a woeful June quarter and depreciation and amortisation, on price-setters would coalesce around Conventional wisdom says Abenomics More widows remain to be made. Excluding trade receivables and
uttered the industry’s pet euphemism, Moody’s calculations. That is a tad payables (which roughly match one
“investing in price”. That said, shares of feverish compared to peers at well another) the value of the company’s
the publicly traded competitors do not under 3 times. Worse, its shares yield tangible assets comes to more than
seem to reflect how bad things are. 8 per cent. That suggests the market would not cost Telefónica its invest- share, a premium of 7 per cent to the with Vonovia’s existing estate. But $5bn. A fire sale of its assets would
High price-to-earnings ratios (for fears a dividend cut. ment grade rating. The company will undisturbed price — but 50 per cent Conwert also comes with 2,400 flats in surely wipe out equity.
example, Morrisons’ is 19) suggest the The charts show some healthy signs, not perish from consumption. more than a rival offered a year ago. Vienna and an Austrian market listing. Nor are Asian rivals such as Orient
expectation that earnings will recover. though. The Spanish operator’s free Conwert’s biggest shareholder will Vonovia says it will retain both, Overseas and Nippon Yusen, up 10 per
Morrisons’ announcement is one more cash flow should improve in the second tender its shares. limiting the scope for cost savings. That cent and 7.3 per cent respectively,
reason to think this will not happen. half as capital spending slows. Latin Vonovia/Conwert: Conwert gives Vonovia some of what the group has had to accept such certain to benefit from Hanjin’s woes.
Overcapacity persists and economic American currencies have recovered. it would have gained from buying inconveniences shows how few large The company is responsible for about
constraints on store closures are A listing of a stake in UK mobile needs must Deutsche Wohnen, which it tried to targets remain in Germany. A second 8 per cent of the Asia-to-US shipping
difficult. The big, privately-held operator O2 has been announced. buy this year, though on a smaller bid for Deutsche Wohnen is unlikely in route, and the peak fourth-quarter
German discounters Aldi and Lidl are Yesterday, Telefónica revealed plans to It is a measure of how rapidly Vonovia scale. It will add 14 per cent to the short term while LEG, another shopping season is approaching.
intent on increasing their 10 per cent float its cell tower unit, Telxius. has grown that it can describe a €3bn Vonovia’s housing stock in Berlin and rival, is exposed to regions where Yet Hanjin’s liquidation would not be
slice of the market. Morrisons’ margins Valuations of European peers suggest deal as a “bolt-on”. It is also a reminder 11 per cent in Saxony. The combined Vonovia is already well represented. enough to overcome the industry’s
are a bit over 2 per cent, compared a worth of at least €3bn, given ebitda of that the German property group has group will not be financially stretched. Overseas expansion is also unlikely. fundamental overcapacity. Taking a
with nearly 5 per cent three years ago. €323m last year. The O2 listing should few viable options left for While Vonovia is paying a 5 per cent It cannot generate the cost savings punt on Hanjin’s shares surviving is
That cannot go much lower before bring in even more. All this comes as transformational acquisitions. premium to Conwert’s last published available from Germany’s relatively crazy. Expecting that the industry will
real economic profits disappear. Other Spain, half of profits, enjoys a Vonovia said yesterday it would bid net asset value, that is less than the homogenous housing stock. Vonovia be saved by its demise is little better.
peers have more room to cut, though. strengthening economy. €2.9bn for the debt and equity of 20 per cent premium its own shares says it is relaxed about slower growth.
Strategic options (other than playing With a bit of rest from spending Conwert, an Austrian property command — partly because of Investors, who have enjoyed total
“who can take the most pain?”) are these actions will lift cash flow. The key developer, offering €16.16 a share in Conwert’s past bust-ups with, and annual returns of 29 per cent since Lex on the web
For notes on today’s breaking
limited by the size of the big chains. is to show progress — especially to the cash or a share-based alternative. This between, its shareholders. Vonovia floated in 2013, should ask stories go to www.ft.com/lex
Moving upmarket, pushing into rating agencies. Even so, a downgrade values the target at about €17.30 per The German units will be integrated themselves whether they are, too.

LOW Today’s temperatures

990 1010
Abu Dhabi Sun 40 Malta Fair 29
1000 17 Amsterdam Fair 24 Manila Fair 32
Ankara Sun 30 Miami Thunder 31
1010 22
19 8 Athens Shower 28 Milan Sun 29
18 Bahrain Sun 39 Montreal Sun 27
Barcelona Sun 31 Moscow Cloudy 18
20 1020 Beijing Cloudy 33 Mumbai Fair 31
Belfast Cloudy 21 Munich Fair 21
LOW 20 Belgrade Rain 19 Naples Sun 26
HIGH 23 25 Berlin Sun 23 New York Fair 31
24 23 Brussels Fair 24 Nice Sun 27
23
Budapest Cloudy 23 Nicosia Sun 32
23 23 Cairo Sun 33 Oslo Fair 22
Cardiff Cloudy 23 Paris Cloudy 25
25 23 Chicago Fair 32 Prague Fair 21
23 Cologne Sun 25 Reykjavik Cloudy 13
29
Copenhagen Sun 21 Riga Fair 19
31 24 Delhi Fair 34 Rio Cloudy 28
30 30 Dubai Sun 39 Rome Sun 28
Dublin Cloudy 22 San Francisco Sun 23
28 Edinburgh Cloudy 22 Singapore Thunder 31
33
39 6 Frankfurt Sun 25 Stockholm Sun 21
32 8 Geneva Sun 24 Strasbourg Sun 25
LOW 32
Hamburg Sun 24 Sydney Sun 22
24 Helsinki Fair 17 Tokyo Fair 32
32 30 28 31
16 Hong Kong Thunder 30 Toronto Fair 31
1010 Istanbul Sun 30 Vancouver Cloudy 18
1020 41 Lisbon Sun 33 Vienna Rain 19
Wind speeds in KPH London Cloudy 25 Warsaw Fair 23
Forecasts by Los Angeles Sun 25 Washington Sun 34
Wind speed Luxembourg Sun 23 Zagreb Rain 19
in KPH Madrid Sun 39 Zurich Sun 23

CROSSWORD
No. 15,338 Set by DANTE
        ACROSS DOWN
1 One provides cover by bringing 1 An energetic group, one out to
in bread (6) make mischief (8)
  4 The good side of a split 2 More than father I had, though
personality (2,6) not worth it apparently (8)
9 Accelerate promotion (4,2) 3 Illegally transfers in Arundel’s
10 Absent-minded girl’s Exchange (8)
 
distinguishing feature (8) 5 Endlessly producing fruit (6)
 11 They have two members in 6 Exact, though once wrong? (6)
support (6) 7 Giving rise to food and drink (6)
   12 Party animal backing words to 8 Reveals impediment to one’s
   
music (8) offspring (4,2)
13 Chelsea hair-style? (3) 12 Rape victim gives money to
 14 Nastily deride a girl’s name (6) church (7)
17 Potential risks includes one in 15 Part of a “Weekend
   
France for winter sportsmen Supplement” (3)
  (3,4) 16 With an initial dividend (3)
21 Some contradict umpire’s ruling 18 Soft spot your boss has for you?
(6) (8)
 
25 The only one in a suit (3) 19 Outlook from carriage (8)
26 Feeling sorry about the last 20 First-class fare for the Olympics
character in Cornish town (8) (8)
27 Superior Spanish gentlemen I 22 Inspires wireless operators (6)
  accommodated (6) 23 Flag Officer? (6)
28 There’s purpose in regular 24 Please order wood like
payments for clothes (8) mahogany (6)
29 Anticipates a guru’s breakdown 25 One getting over show of nerves
JOTTER PAD (6) can be really sour (6)
30 Condemn in just a few words (8)
31 The spirit of Holland – or
Switzerland? (6)
Solution to Saturday’s prize puzzle on Saturday September 17
Solution to yesterday’s prize puzzle on Monday September 19
Winners’ names will be printed in Weekend FT
Tuesday 6 September 2016 ★ 13

Nippon Yusen Sun Hung Kai Zoopla Yen / dollar Sterling/dollar Nikkei 225 Brent crude Gold
Back to business What investors
will be watching for this month
MARKETS, PAGE 22 SEPTEMBER 7.33% 4.65% 7.8% 0.5% 0.3% 0.7% 2% $2.80
¥205 HK$117.10 330p ¥103.39 $1.3322 17,038 $47.78 $1,328

Brussels urges Technology and financial stocks lead rotation

away from defensives in US equity markets
Short
View
EU countries US stock sector returns
S&P 500 indices, Q3 2016 (%)
Technology 10.6 Leo
Lewis
to probe VW Financials

Materials 5.9
7.2
In the 1960s British television series The Prisoner, the hero
— no matter how elaborate or seemingly successful his

on ‘dieselgate’
escape — would always find himself despairingly back in
the Village. That is the relationship between Tokyo stocks
Industrials 4.3 and the Bank of Japan.
After weeks squirming about the BoJ’s expanded ¥6tn
exchange traded fund buying programme and its effect on
Consumer
discretionary 3.3 the market, attention has turned instead to what one ana-
lyst calls a “violent sector rotation” and another describes
3 Justice official cites consumer laws as a “complete contrast to the market strategy of the last

3 New front in emissions scandal Healthcare 1.0 two years”.

The moves are striking. On a quarter-to-date basis, the
top performers in the Topix have been the insurers (up

JIM BRUNSDEN — BRUSSELS The scandal erupted last year after

-0.8 Energy 24 per cent), the securities industry (up 22 per cent) and
the banks (up 22 per cent). Far away at the other end — in
PETER CAMPBELL — LONDON
it was revealed that the company an unusually big gap between winners and losers — are the
Volkswagen faces claims that it broke
consumer protection laws in 20 Euro-
had been using software in 11.5m
vehicles worldwide that artificially
-0.8 Consumer
staples
pharmaceuticals sector, the railways and the foodmakers
(down between 4 per cent and 5.5 per cent).
pean countries by marketing the cars at lowered emissions of poisonous Given the bearishness generated by the BoJ’s negative
the centre of the dieselgate scandal as
“green”.
nitrogen oxide in laboratories but left
them at much higher levels when on the
-5.2 Telecoms interest rate policy (NIRP), the banks and securities com-
panies are improbable summer victors. The sectors sitting
Vera Jourova, the EU justice commis- road. wounded at the bottom end of the ladder should normally
sioner, is pushing national authorities to
investigate whether VW broke the law
The affair has left the company facing
lawsuits across the world over the way it
-6.1 Utilities outperform during the kind of yen strength that has per-
sisted since May. Is the market no longer the prisoner of
on their territory, and if so to take action marketed its diesel cars to drivers. In Selected quarterly S&P 500 stock returns (%) the BoJ’s influence? Unfortunately not.
against the company. She wrote to capi- the US, claims that consumers were mis- Technology Financials Telecoms Utilities The recent outperformance of the bank shares follows a
tals this summer requesting informa- sold have been wrapped into a larger savage bear mauling after NIRP was announced in Janu-
tion on what they had done to probe settlement under which VW agreed to ary. Banks fell so hard that even giants such as Mitsubishi
VW’s actions. pay $15.3bn. 10 10 10 10 UFJ traded on a price/book ratio below 0.5 per cent. But
Speaking to the Financial Times, For seven years, advertising cam- when the BoJ didn’t lower rates further in July, and Mit-
Ms Jourova said the responses showed it paigns promoting “clean diesel” were 0 0 0 0 subishi UFJ registered its fury at NIRP by leaving the gov-
was “likely” that the German carmaker used by VW in the US to try to convince ernment bonds primary dealers’ club, the market decided
breached Europe’s “unfair commercial drivers that its vehicles were 90 per cent that it had overshot. The NIRP of BoJ governor Haruhiko
practices directive”, which prohibits less polluting than traditional diesel Q1 2012 Q3 2016 Q1 2012 Q3 2016 Q1 2012 Q3 2016 Q1 2012 Q3 2016 Kuroda, many euphorically decided, would be shallower
misleading advertising claims, in many cars. In reality, they emitted up to than first feared, and the sharp rise in long-term interest
FT graphic Source: Bloomberg
EU nations. 40 times the legal limit of poisonous rates allowed the banks to rally.
While the commission is seeking nitrogen oxide gases. That was always a gamble. But after Mr Kuroda’s speech
to galvanise capitals into action, Ms Jourova said she would meet NICOLE BULLOCK — NEW YORK tors — comes as anxiety grows than 20 per cent for the year yesterday, which seemed to clarify that the BoJ could take
Ms Jourova stressed that it was for national authorities and consumer over the valuation of the stock until July, Both sectors lost rates lower, the dream of escape, and the sector rotation
US technology and financial
national authorities to decide how to groups in the coming weeks to make market. The S&P 500 is trading about 6 per cent in August. that made the banks such summer superstars, may look as
stocks are on track for their
punish VW for the suspected rule viola- sure that VW’s actions were being prop- with a forward price/earnings The last time tech and finan- fanciful as one of the Prisoner’s glimpses of freedom.
best quarter in almost three
tions. Possibilities include administra- erly scrutinised across the EU. ratio of about 17 times, above cials performed this well was
years, underlining a sharp
tive fines as well as the launching of pro- “I don’t want to see, in the case of the the five-year and 10-year aver- in the final quarter of 2013.
rotation away from defensive- Japanese banks outperform
ceedings under civil, and potentially scandal which covers the whole Europe, ages of 14.7 and 14.3 times Shares in eBay have gained
minded investments in the Topix Banks index
even criminal, law, she said. that there will be extreme differences respectively. “There is a con- more than a third this quarter, 112
world’s largest equity market.
She added that she wanted to make among the member states,” she said. cern that the overall market is while Bank of America, Morgan
sure that individual customers and Ursula Pachl, deputy director-general Over the past month the S&P fully valued, so investors have Stanley, Goldman Sachs and 110
independent consumer groups were of BEUC, the EU consumers organisa- 500 Information Technology been looking at where the best Citigroup have all recorded 108
aware of their right to take action tion, said that it was “welcome that the index has gained 3 per cent, relative value is,” said David double-digit gains. 106
against VW over misleading environ- commission is upping the pressure”. putting its advance this quarter Donabedian, chief investment “This is an opportunity for The banks’ recent
mental claims. “The commission made it clear that at almost 11 per cent. Mean- officer at Atlantic Trust. long-term investors to focus on 104 outperformance
“Part of the mission we have now is to VW has broken EU law,” she said. while the S&P 500 Financials Investors are worrying about what is cheap, rather than 102 follows a savage
encourage consumers to think about “National authorities must now index is up 4.8 per cent over the high prices for the defensive, chase what looks expensive,” 100 bear mauling after
what protection they have thanks to assume their responsibility and take month and 7.2 per cent for this dividend-paying stocks that said Michael Underhill, portfo- the BoJ’s negative
May Jun Jul Aug Sep
European legislation,” she said. action against the German carmaker. quarter to date. were in heavy demand in the lio manager at RidgeWorth 2016 interest rate policy
The suspected consumer-law Infringements against EU consumer The shift to tech and finan- first half of the year. Investments. Source: Bloomberg was announced
breaches add another front to the pres- right and car-emission laws cannot be cials — at the expense of utility Shares of telecoms compa- Additional reporting by Rochelle
sure on VW over dieselgate. left unpunished.” and telecommunications sec- nies and utilities were up more Toplensky leo.lewis@ft.com

Investment banks suffer 15% decline in

revenues as M&A drop hurts margins
BEN MCLANNAHAN — NEW YORK pendent research and validation by a rules on capital and risk-taking contin-
network of market participants. ued to weigh heavily on the industry.
The world’s biggest investment banks
The banks’ revenues from trading “Investment banks are realising there
saw combined revenues sink 15 per
stocks and bonds, and advising compa- is no top-line relief, capital allocation
cent in the first half of this year, the
nies on mergers and capital raising, from [parent companies] probably
most since the aftermath of the finan-
came to $79bn in the first half, down won’t change much, and regulations
cial crisis, underlining the urgency of
from $93.3bn in 2015. That marked the won’t change much. So improvement in
taking radical measures to boost
Brazil to legalise gambling steepest year-on-year fall since a 25 per returns becomes dependent on optimis-
returns to shareholders.
in effort to revive fortunes cent drop between the first halves of ing the cost base or grabbing market
The second quarter saw more activity 2009 and 2010. The peak was $140bn in share,” Mr Kuznetsov said.
Brazil’s government is expected to than the first, where there were simulta- the first half of 2009. Banks have tried to keep a lid on
legalise gambling as early as this year, neous falls across stocks, bonds and George Kuznetsov, head of research expenses by relocating support staff to
ending a 70-year ban in a bid to raise commodities and a dearth of companies and analytics at Coalition, said the pros- cheaper locations and by tying pay —
tax revenues to plug the country’s doing deals. But the rebound was not pects for a better second half of 2016 their biggest cost — more closely to
budget deficit. The move is drawing strong enough to avert a fall in total rev- looked good, as the third quarter had income. At Goldman Sachs, for exam-
huge interest from the world’s casino enues from investment banking for the continued in a similar vein as the sec- ple, compensation and benefits dropped
operators and betting groups. top 12 banks, according to figures from ond. Even so, he said, no bank expected 13 per cent in the second quarter from
Report i PAGE 15 Coalition, a London-based group that its own revenues to rise more than 5 per the previous year, exactly in line with
combines public information with inde- cent or 6 per cent next year, as tougher net revenues.

Companies / Sectors / People

Companies
AES Corporation......................................15
AES Sul..........................................................15
Adler Real Estate....................................14
Aldi...................................................................12
Apple....................................................11,14,14
Bank of America......................................13
Betsson..........................................................15
Bonaire Participações...........................15
British American Tobacco.................23
CK Hutchison.............................................16
CPFL Energia.............................................15
Camargo Corrêa.......................................15
Dechra Pharmaceuticals.....................23
Deutsche Wohnen.............................12,14
E-Plus..............................................................12
Ebay.................................................................13
Facebook................................................14,16
Fidelity...........................................................14
Ford.................................................................16
Fosun Group...............................................15
Fox News..................................................1,14
GKN.................................................................23
GVT..................................................................12
Gawker..............................................................1
GoPro..............................................................14
Imperial Brands........................................23
LEG...................................................................12
LG......................................................................12
Ladbrokes....................................................15
Liberty Broadband.................................14
Lidl....................................................................12
Lloyds Banking Group.........................23
Logitech........................................................14
London Metal Exchange....................24
MGM Resorts International...............15
Microsoft.................................................14,16
Morgan Stanley........................................13
Nokia...............................................................14
O2......................................................................12
Orient Overseas.......................................12
Petrobras......................................................15
Previ................................................................15
Rio Bravo Investimentos.....................15
Royal Bank of Scotland......................23
Sainsbury......................................................12
Samsung Electronics.......................12,14
Snapchat.......................................................14
State Grid Corp of China....................15
Telefónica...............................................12,16
Tesco...............................................................12
Vonovia....................................................12,14
Walmart.........................................................12
William Hill...................................................15
Zoopla............................................................23
Sectors
Automobiles..........................................13,16
Banks.................................................1,3,13,24
Basic Resources.......................................24
Energy.....................................................15,24
Financial Services....................................15
Financials.............................................2,13,15
Insurance......................................................14
Shipping........................................................12
Technology.......................................11,13,14
Telecoms......................................11,12,14,16
Travel & Leisure......................................15
Utilities...........................................................15
People
Ailes, Roger...................................................1
Buch, Rolf.....................................................14
Eriksson, Per...............................................15
Li, Charles...................................................24
Malone, John..............................................14
María Alvarez-Pallete, José..............16

Charter Communications....................14 Goldman Sachs.........................................13 Morrisons......................................................12 Time Warner Cable................................14 Media...........................................................1,14 Osorio, Luiz Eduardo............................15

Citigroup.......................................................13 Google......................................................14,16 Nest.................................................................14 Union Bank of India..............................24 Oil & Gas..........................................15,22,24 Proschofsky, Alexander.......................14
Comcast........................................................14 Hanjin Shipping........................................12 NetEnt............................................................15 Univision.......................................................14 Property..................................................12,14 Rutledge, Tom..........................................14
Conwert...................................................12,14 Hong Kong Exchanges.......................24 Nippon Yusen............................................12 Volkswagen.................................................13 Retail & Consumer..................................12 Spiegel, Evan.............................................14

© The Financial Times Limited 2016 Week 36

14
Technology
Snapchat hints at AR hardware launch
Photo-sharing app is hiring
augmented reality experts
and joins Bluetooth group
TIM BRADSHAW AND HANNAH KUCHLER
SAN FRANCISCO
Snapchat has given the strongest hint
yet of its ambitions to move from apps
into hardware, by joining the industry
group that runs the Bluetooth standard.
The move, which follows a string of
new recruits and acquisitions from the
world of consumer electronics, will fuel
speculation that the photo-sharing
start-up is building a pair of augmented
reality (AR) goggles.
Apple, Google, Microsoft and Face-
book have all recently expressed inter-
est in augmented reality, which overlays
virtual objects on top of real-world
Samsung swipes away fears over Note 7 recall
Analysts say group’s early
identification of the problem
should help to contain costs
SONG JUNG-A — SEOUL
Samsung Electronics investors have
swiped away concerns about its unprec-
edented recall of 2.5m Galaxy Note 7
phones — despite a forecast loss of more
than 4m unit sales, worth $5bn in reve-
nues or 5 per cent of annual net profit.
Shares in the group rose 0.5 per cent,
to Won1.6m, yesterday — the first day of
trading after the recall was announced,
following reports of exploding batteries.
However, while analysts said the rela-
tively early identification of the prob-
lem should contain the cost, the longer-
term reputational damage for Samsung
appears harder to gauge.
As shareholders absorbed the details
of the recall, which covers all models of
Note 7 smartphone globally, analysts
pointed out that the financial impact
was manageable for the cash-rich com-
pany. Implementing the process will
Samsung’s shares
rose yesterday, the
first day of trading
after the recall
following reports of
exploding batteries
cost $1bn, they estimated, but the com-
pany has net cash of Won65tn ($59bn).
“Samsung has contained the damage
well, although some said the company
was going out of its way to replace the
faulty phones with new ones,” said Dan-
iel Kim at Macquarie. “I think the bat-
tery problem will be a one-off issue.”
Its timing is likely to increase the total
cost, though, as the two weeks needed to
manufacture replacement products
could deny Samsung an early-mover
advantage over Apple’s rival iPhone 7,
which will be launched tomorrow. It
may also provide an opportunity for
Chinese rivals to gain market shares.
Samsung declined to confirm the costs
involved.
“The exchange programme is a bold
move that only companies with deep
pockets such as Samsung and Apple can
afford,” said Peter Yu at BNP Paribas.
“But it is regrettable that, with the
recall, they lost the window of opportu-
nity that was open ahead of the new
iPhone launch.”
Samsung has also put its short-term
sales momentum at risk, after posting
its best quarterly profit in two years
thanks to robust sales of its Galaxy S7
phones. For the three months to June,
estimated operating profit rose 17.4 per
cent year on year to Won8.1tn ($7bn).
Until the reports of exploding batter-
ies, the new Note 7 had been hailed as
Property
Vonovia agrees €2.9bn deal for Austrian peer Lloyd’s of London warns on ‘hard’ Brexit
JAMES SHOTTER — LONDON
German landlord Vonovia has agreed a
deal worth €2.9bn for its Austrian peer
Conwert, in the latest round of consoli-
dation in the central European prop-
erty market.
Vonovia said it would offer 74 of its
own stock for every 149 Conwert shares
held, which it said equated to €17.58
a share.
The deal values the target group’s
equity at €1.7bn, and is worth €2.9bn
including debt.
Alternatively, as legally required in
Austria, Conwert shareholders can
chose a cash payment of €16.16 per
images. Snapchat already employs simi-
lar technology in its app’s filters or
“lenses”, which customise users’ selfies
with playful animations.
The messaging service, which now
has 150m daily active users, has
expanded beyond its original disappear-
ing messages, becoming a platform for
live events and professional publishers.
Reports that Snapchat was develop-
ing a wearable device first emerged in
March, when tech news site CNET
reported that people from Nokia and
Logitech with expertise in building
hardware had joined a secret research
and development lab.
The fast-growing company, which is
valued at more than $15bn and counts
Fidelity among its investors, has never
commented on any hardware plans, but
joining the Bluetooth consortium is a
clear signal of intent.
Technology. Damage limitation
Testing time: a one of the best smartphones yet made.
customer tries Its sleek curved screen design and iris-
out a Galaxy scanning security feature raised hopes
Note 7 ahead of that sales would continue strongly into
the company’s the second half.
recall of 2.5m But, following the recall, Strategy
phones after Analytics forecast that Samsung would
problems with probably sell fewer than 10m Note 7
the batteries phones this year, compared with its pre-
Jung Yeon-Je/AFP/Getty
vious estimate of 14m globally.
Adding the lost sales to cost of the
recall itself will cut Samsung’s smart-
phone revenue by $5bn this year, Strat-
egy Analytics concluded, and reduce
smartphone profit margins by 1.5 per
cent. Even so, this estimated cost
Samsung earnings
Net profit (Won tn)
2009 12
Sources: Bloomberg; Credit Suisse estimates; Gartner
share, a slight premium to Friday’s clos-
ing price of €16.15.
Rolf Buch, Vonovia chief executive,
said the deal would add about 24,500
Conwert properties to his group’s
340,000-strong portfolio and allow it to
expand into “dynamic regions and cit-
ies” including Berlin, Potsdam, Leipzig,
Dresden and Vienna.
After a frenzy of dealmaking, fuelled
by rock-bottom interest rates and
demand from international fund man-
agers for real estate investments, Vono-
via has emerged as the German-speak-
ing region’s biggest listed landlord.
Its bid for Conwert comes six months
after Vonovia failed in a hostile €14bn
★ FINANCIAL TIMES
COMPANIES
Membership of the Bluetooth Special 150m
Interest Group is essential for any
Daily active users
device maker that wants to use the wire-
less standard in its hardware.
Snapchat is listed as a member on the
of the messaging
service, which has
become a platform
Bluetooth SIG’s website, which also
shows it has registered for a unique
for publishers
$15m
“company identifier” — similar to a
domain name for a website.
Analysts say only companies with
Price Snapchat paid
for Vergence Labs,
start-up developing
plans to launch a wireless device, rather a camera-toting
than merely develop software, would headset
join the consortium. Bluetooth is the
most popular way for wearable devices
such as smartwatches to connect wire-
lessly to smartphones.
One person who works with several
device makers said Snapchat had been
tapping contract manufacturers to
build prototype headsets earlier this
summer, suggesting the initiative is still
at a formative stage.
equates to just 5 per cent of Samsung’s
projected net profit of $20.6bn this year.
Mr Yu also said the company’s imme-
diate damage limitation exercise was
relatively easy, as the battery problem
emerged early in the product cycle,
after a relatively small volume of sales.
“They avoided the worst-case scenario,
although it will lose a few million ship-
ments to Apple in the recall process.”
What is less clear is how the reputa-
tional damage, and the questions about
quality control, will affect Samsung’s
smartphone recovery in the longer
term, after two years of falling earnings
and market share. “There is risk of dam-
Worldwide smartphone sales
Units (m)
Samsung Apple
Estimates 30 90
80
70
20
60
50
10
40
30
0 20
14 16 18 2014 15 16
Insurance
bid for Deutsche Wohnen, the second- OLIVER RALPH — LONDON
biggest listed German property group.
The chairman of Lloyd’s has warned
Conwert investors are likely to be
that the London-based insurance mar-
invited to tender their shares from
ket could move some of its operations
November 18 to December 19. Adler
to other parts of the EU if it loses access
Real Estate has committed to tender its
to the single market.
26 per cent stake. Vonovia needs a sim-
ple majority. Speaking at Lloyd’s annual dinner,
Alexander Proschofsky, chairman of John Nelson said that passporting
Conwert’s administrative board, said rights, which allow UK-based compa-
the group intended to recommend the nies to sell services across the EU, were
deal, “subject to legal examination”. “fundamental”.
Shares in Vonovia closed down 2.2 per Mr Nelson’s comments come amid
cent at €34.62. a growing debate over whether the
Conwert stock was up 5.2 per cent at UK should pursue a “soft” exit, in
€16.99 in Vienna. which businesses would retain access
See Lex to much of the single market, or a
Tuesday 6 September 2016
INSIDE BUSINESS
FINANCE
Sujeet
Indap
Any product resulting from the R&D
effort is unlikely to launch this year.
Snapchat first showed an interest in
hardware when it acquired Vergence
Labs, an early-stage start-up that was
Cable Cowboy’s group
developing a camera-toting headset
similar to Google Glass, for a reported
plays legal hardball
$15m in 2014. This summer, paparazzi
captured Snapchat’s co-founder and
chief executive Evan Spiegel wearing
with the TV networks
glasses resembling Vergence’s prototype
while holidaying in Corsica, Business
J
Insider reported. ohn Malone, the “Cable Cowboy”, is known for
People familiar with Snapchat’s plans playing the angles to defer or avoid paying taxes
say its hardware project has gathered to Uncle Sam in the aftermath of a deal. Now his
momentum since the beginning of this game has moved on to other forms of mergers and
year. It has stepped up its hiring in the acquisition ju-jitsu aimed at boosting his bottom
consumer electronics industry, with line. His US pay-TV distributor, Charter Communications,
recruits joining from Nest and GoPro. is battling television networks over the terms of its recent
Snapchat declined to comment on tie-up with rival Time Warner Cable. The dispute centres
joining the Bluetooth group or other on the esoterica of merger subsidiaries and is the latest
aspects of its plans. front in the bloody fight between beleaguered content pro-
viders and the heavyweight pay-TV operators who wish to
spend as little as possible on programming.
Mergers and acquisitions are rarely as simple as com-
pany A buying company B. Start sifting through the trans-
action documents and there will be boxes and arrows
showing multiple corporate vehicles jammed together and
broken apart (two common structures, the vividly named
“double dummy” and “reverse triangular”, sound like
gymnastics moves, or worse).
The complexity is needed for managing tax, liabilities
and relationships with counterparties. Mercifully for
investors and analysts, the structuring technicalities are
not often broadly consequential. One set of shareholders
gets cash and stock for their shares. The company that
comes up with those funds then owns the target’s assets
and liabilities.
Mr Malone’s adventures started in 2013 when he bought
a stake in Charter, a small player that had come out of
bankruptcy and had 6m subscribers. It quickly became
evident that Mr Malone was planning to use it to create a
pay-TV and broadband internet juggernaut.
He had pursued TWC, but was surprisingly thwarted by
Comcast which snatched the company in early 2014. But
regulatory worries nixed that deal a year later, and Charter
jumped back in with an offer of cash and its own stock. The
resulting tie-up with TWC was announced in May 2015.
The Charter-TWC deal, valued at $71bn, closed in May
this year. The popular interpretation is that Charter,
despite being the smaller enterprise, acquired TWC. TWC
had struggled for years despite its presence in the New
York City and Los Angeles markets.
Charter had told Wall
Street that the deal would
produce $800m of annual
‘It is highly likely
synergies with a big chunk that we will see
coming from lower program-
ming expenses. Such savings
negotiated
typically take time to materi- settlements for
alise: when existing agree-
ments with content provid-
these cases’
ers roll off, the newly
enlarged pay-TV distributor can demand more favourable
renewal terms.
But Charter believes that it is entitled to cheaper terms
immediately. TWC had lower rates because of its larger
scale. Charter asserts those lower rates still apply because
of the way it crafted the legal entities underlying the com-
bination. It says that TWC survived the merger, so its rates
age to the brand name,” says Bryan Ma, for buying programming survive, not just for legacy TWC
an analyst at IDC. “Samsung needs to get subscribers but across the Charter customer base.
past this quickly so that its name doesn’t So far three networks — Fox News, Univision and CBS/
get associated with the frightening Showtime — have sued Charter in the New York state court
thought of an exploding phone.” alleging breach of contract, contesting the claim that TWC
He remained confident that the South and its lower rates still apply. Lawyers expect similar law-
Korean group could do this. “I think suits from other networks in September.
they are doing what they need to do to The suing networks all point to executive actions, com-
contain it. While it may hurt them in the mentary and presentations that refer to Charter as assum-
short term, it’s likely that most consum- ing control of TWC. Mr Malone is a Charter board member
ers will forget about this within a year or and his affiliate, Liberty Broadband, owns a fifth of the
so, especially if Samsung is able to daz- combined company.
zle them with next year’s phones.” The CEO of the combined group is also Tom Rutledge, a
Mr Kim at Macquarie also expected highly respected industry veteran who joined Charter in
“limited damage on its brand image”. 2011. The question is if any of this evidence matters for the
Samsung is not the first smartphone underlying legal foundations of the deal.
maker to run into battery problems. Charter is highly leveraged so every dollar of cost savings
Earlier this year, Apple recalled adap- is closely scrutinised by creditors and shareholders. Cable
tors sold in Europe and other regions analyst Craig Moffett has said the tangles were expected
after they delivered electric shocks in a and will be settled outside of court as these disputes often
dozen cases. In 2007, Nokia recalled are. “It is highly likely that we will see negotiated settle-
mobile phones after 100 cases of over- ments for these kinds of cases, where the two sides swap
heating batteries were reported. price for [contract] duration and certainty,” he said.
Chang Sea-jin, a professor at the But for now, Charter is talking tough as it tries to hold
National University of Singapore, even Fox and Univision to their contracts. According to one fil-
argued that Samsung’s swift response to ing, one Charter executive wrote in an email to a Univision
the battery problem could boost its cor- executive: “We will just accept as you have never had this
porate image. “I think Samsung has sent job previously and probably do not know what you are
the message across with the recall that it doing”.
is a responsible company,” he said. “I In another missive to Fox News, Charter wrote: “We
don’t think this misfortune would dis- appreciate that, as publicly reported, the [Charter/TWC
credit Samsung’s recent technological deals were] were not self-explanatory.”
breakthroughs such as iris scanning and No surprise when Mr Malone is involved.
wireless charging.”
See Comment sujeet.indap@ft.com
more comprehensive “hard” exit. more than a fifth of the City’s gross
“At Lloyd’s we are very much of the domestic product.
view that retaining access to the EU sin- Mr Nelson, who is due to step down as
gle market is fundamental, not just for chairman next year, stressed that
Lloyd’s but for the City in general,” he Lloyd’s would continue to be based in
said. London.
“If we are not able to access the single Lloyd’s itself is not a company but a
market, either through passporting market where insurers sell policies to
rights or other means, the inevitable customers via brokers. Lloyd’s network
consequences for Lloyd’s — and indeed of licences around the world — including
other insurance organisations — will be passporting rights in the EU — means
that we will transact the business that it is a convenient place for insurers
onshore in the EU, and that obviously to do business.
will have an impact on London.” About 11 per cent — or £3bn — of the
The London commercial insurance market’s premiums come from the EU,
market, which includes Lloyd’s, although not all of that is likely to be at
employs 50,000 people and contributes risk if passporting rights disappear.
Tuesday 6 September 2016 ★ FINANCIAL TIMES 15

COMPANIES

Betting groups hope for Brazil gambling boost

Foreign operators hover as government looks to lift 70-year ban and plug a budget deficit of more than 10% of GDP
SAMANTHA PEARSON — SAO PAULO what of a taboo here, but in the rest of
Losing streak the world it is an entertainment indus-
The elderly man in a brown cardigan sit- try,” says Magno José Santos de Sousa,
ting outside a bar in São Paulo’s upmar- IJL’s president, adding that Brazil is los-
ket Jardins neighbourhood does not ing R$6bn a year in taxes in the R$20bn
look much like a mobster. However, he illegal gambling market.
is in fact one of the many operators of Gambling was outlawed in 1941
Brazil’s Jogo do Bicho (Animal Game) — a alongside vagrancy as part of Brazil’s
gambling racket run by mafia bosses Criminal Contravention Act — rules
and corrupt public officials worth brought in during Brazil’s industrialisa-
R$12bn ($3.7bn) a year. tion period to increase productivity.
“My job is a bit like being a therapist,” In 1946 the president, Eurico Dutra,
he says, explaining how to play the ille- issued a decree to shut down all existing
gal lottery that started out as a raffle at a casinos — allegedly at the behest of his
Rio de Janeiro zoo in 1888. Clients often piously Catholic wife.
turn up to tell him their dreams, which Only state lotteries, as well as poker
he interprets with the help of a special- and betting on horse races, which are
ised dictionary that also indicates which Brazil’s $6.1bn illegal gambling market considered sufficiently skill-based
of the lottery’s 25 animals they should activities, remain legal.
pick. Total amount bet a year ($bn) In the 1990s bingo was reintroduced
You dreamt of missing your flight? It under the “Pelé Law” to fund sports
means you have regrets and should bet activities but became a target for money
on the eagle. “Snakes are very common launderers, leading the Supreme Court
— they indicate betrayal,” he says. to outlaw it in 2007.
The popularity of Jogo do Bicho — Both Brazil’s lower house and senate
with Brazil’s rich and poor, old and 3.7 are discussing separate legalisation bills,
young — is proof, gaming experts say, of 1.1 0.9 which include proposals to force foreign
how successful the country’s gambling 0.4 groups to take on local partners and
industry could be if it only were legal. restrictions on how many casinos one
After a 70-year ban, Brazil’s govern- Jogo do Bicho Bingo Slot machines Online gambling company can own. Online betting may
(Animal Game)
‘It would be one of the ‘A good [online tax] level
most significant events in Biggest gamblers, loss per resident Biggest losses per country Global gambling losses would be between 15 and
gaming history if Brazil adult (2015) €bn €bn Forecast 20% — we can’t be there if
€ 380
opens up to gambling’ 0 200 400 600 800 0 20 40 60 80 100 we can’t earn any money’
Australia US
Singapore China 360
ment is finally expected to legalise gam- remain illegal amid addiction fears.
bling as early as this year in an effort to Ireland Japan After congress agrees on the legisla-
raise tax revenues to plug the country’s Finland Italy tion, it could get the presidential sign-off
340
budget deficit, drawing huge interest US Australia this year but more likely early next, Mr
from the world’s casino operators and UK Maia says. However, Brazil’s president
New Zealand
betting groups. may try to speed up the process by first
Canada Canada 320
“It would be one of the most signifi- creating a gambling regulatory agency
cant events in gaming history if Brazil Italy Germany as the government scrambles to find
opens up to the gambling sector,” UK Norway France 300
ways to plug a budget deficit of more
bookmaker William Hill said in a UK Spain than 10 per cent of GDP.
statement. William Hill, rival Ladbro- 2010 11 12 13 14 15 16 17 18 Foreign operators would be likely to
kes, the US casino group MGM Resorts FT graphic Sources: Legal Gaming Institute; H2 Gambling Capital dominate the casino industry, based in
International, and Sweden’s Betsson tourist hotspots such as Rio, while
and NetEnt all say they are interested in sports betting will be hotly contested
expanding into Brazil once the sector is Sin tax receipts gaming revenue is substantially less collected from federal, state and local Last month New South Wales, with Brazilian companies, especially
regulated. Respectable contribution than some other European countries. direct revenue. Australia’s most populous state, given possible interest from local media
“The Brazilian market has enormous Gambling companies in the Netherlands While Brazil is looking to legalise announced a ban on greyhound racing, groups, analysts say.
potential with a population that has to UK and US coffers are subject to a 29 per cent levy, for gambling, Australia is cracking down. citing “systematic animal cruelty”, while However, much will depend on the
long enjoyed a love affair with football example, while those in Portugal pay up Australia is one of the biggest the South Australia state government government’s cut in taxes, which IJL
which is Ladbrokes’ fastest growing Brazil is not alone in its ban on to 30 per cent. markets for gambling, and boasts the has introduced a 15 per cent “point of says should be similar to the world aver-
product,” says the bookie, while MGM gambling. Various forms of gaming are The UK raised more from tobacco highest gambling loss per head at consumption” tax on net revenue age of 30 per cent for physical opera-
highlights its interest in “large-scale outlawed across much of the Middle duties — £9.5bn — and beer duties — US$1,130, according to H2 Gambling from betting. tions and lower for online groups.
integrated resorts”. East. In the US, betting on sport £3.3bn — last year than from gambling. Capital, a UK consultancy. Under current laws, online bets in Per Eriksson, chief executive of
Luiz Maia, a São Paulo-based lawyer is illegal. Gambling in the US is subject to a Australian governments, which rake Australia are subject to taxes levied by NetEnt, says: “A good level [for online]
who specialises in gaming, says multi- In countries where gambling is minefield of regulation that varies from in A$5.5bn (US$4.2bn) a year in taxes, the state where a bookmaker’s would be between 15 and 20 per cent —
national clients are already discussing legalised and regulated, it often makes a state to state. Betting on sport is have overseen one of the world’s most headquarters is located, rather than on we can’t be there if we can’t earn any
local partnerships and have even signed sizeable contribution to tax receipts. outlawed, while casinos and bingo halls pro-gambling regimes. the location of the customer. This money”.
provisional real estate contracts in prep- In the UK, considered one of the most are legalised in some states. But there are signs of change after system enabled bookies to reduce For the Jogo do Bicho mafia bosses,
aration for the legislation’s approval. liberally regulated countries for The US generated $27.7bn in tax the recent re-election of two anti- liabilities by basing themselves in low- though, even hefty taxes may come as a
Based on the calculation that gam- gambling, taxes from the industry receipts from gambling in 2015, gambling campaigners: Nick Xenophon, tax jurisdictions. relief, says Mr Santos de Sousa, quoting
bling markets account for about 1 per reached a record £2.67bn last year, of a according to a report by the Nelson A. an independent senator, and Andrew But by implementing a point of a 2014 study by the institute that
cent of a country’s gross domestic prod- total of £534bn in tax receipts. Rockefeller Institute of Government, the Wilkie, an independent MP. Both men consumption tax, an idea borrowed showed one in nine clandestine opera-
uct, Brazil’s market could be worth The UK is considered a relatively low- public policy research arm of the State are pressing the government of Liberal from the UK, South Australia aims to tors favoured legalisation. “They have
R$55bn in total bets placed, according to tax environment for gambling University of New York. Prime Minister Malcolm Turnbull to raise an extra A$10m a year from the to pay bribes to the police, to public offi-
Brazil’s Legal Gaming Institute (IJL). companies. Its 15 per cent levy on gross That was a fraction of the $6.7tn tighten gambling regulations. industry. Paul McClean cials — it’s such a long chain of people
“Gambling has always been some- that it’s actually cheaper to pay taxes.”

Utilities. Electricity assets

China’s State Grid secures launchpad for South America expansion

pany. “This was one of the big attrac- companies from the two countries that that of AES Sul, bought from US-based portfolio with installed capacity of 3,129 The sale of Brazil’s CPFL also repre-
CPFL Energia deal opens way tions for the Chinese. It’s this platform were highlighted during the visit, AES Corporation in a R$2.8bn deal megawatts. Of this, 94 per cent comes sents one of the biggest deals yet arising
for further mergers and that it can use for acquisitions in distri- including another in which Fosun Group announced in June. from renewable sources, including from an investigation into corruption —
bution and also in transmission if it agreed to buy 50.1 per cent of Rio Bravo CPFL reported net operating revenue hydropower, wind power, biomass known as Operação Lava Jato — at state-
acquisitions beyond Brazil wants, not only in Brazil but throughout Investimentos, a fund manager. of R$19.2bn last year, up 17.1 per cent plants and small hydroelectric plants — owned Petrobras, which embroiled a
South America.” CPFL has built itself into one of the from a year earlier, and net profit of an attraction for Chinese companies unit of one of the electricity company’s
State Grid’s CPFL deal comes as Chi- biggest electricity distribution compa- R$875m, down 1.3 per cent. seeking a cleaner energy profile. main shareholders, Camargo Corrêa.
JOE LEAHY — SAO PAULO
nese companies eye Brazil’s natural nies in Brazil, operating in the The CPFL deal gives State Grid, which “Brazil is very interesting for foreign The construction and infrastructure
State Grid Corp of China will be able to resources and clean energy sector for wealthier south and south-east with a already has transmission assets in Bra- capital, particularly Chinese,” Mr Oso- company is divesting assets to raise cash
use its newest acquisition in Brazil, acquisitions to cement a strong trade 14.3 per cent market share. This was zil, the Latin American country’s third- rio said. The lifting of political uncer- as it struggles to renew its pipeline of
CPFL Energia, as a platform for further relationship. driven partly by acquisitions, such as largest private sector power generation tainty would embolden investors. “Bra- projects following the scandal.
mergers and acquisitions in South Suffering recession, Brazil is proving zil wants to modernise and assets are “The risks associated with the Lava
America, according to Luiz Eduardo more welcoming of Chinese investment cheap at the moment.” Jato investigation continue to represent
Osorio, CPFL’s legal and institutional than are some other countries. State State Grid was not immediately avail- a negative factor for the ratings of
relations vice-president. Grid has faced challenges in investing in able to comment. Camargo Corrêa,” Fitch Ratings said.
His comments came as State Grid, the Australia, for instance, amid suspicions China is pushing to upgrade its grid, As part of the deal to buy CPFL, the
world’s largest utility, on Friday agreed over the merits of allowing a foreign which is over-reliant on outdated tech- other investors in the controlling share-
the R$5.9bn ($1.8bn) purchase of a 23.6 state-controlled group access to strate- nology and coal power generation, and holder group alongside Camargo must
per cent stake in CPFL, and is expected gic assets such as transmission lines. was built regionally without sufficient be offered first right of refusal for its
to take majority control of Brazil’s larg- Brazilian president Michel Temer met co-ordination between provinces. stake.
est private electric sector company in Chinese president Xi Jinping at the While China’s electricity groups have If the other shareholders, funds
the coming months. Group of 20 meeting held in Hangzhou been on a buying spree, the govern- Bonaire Participações and Previ,
“We have developed this platform at the weekend in his first overseas trip ment, via large state-owned enterprises, accepted an offer for their shares from
that we call plug-and-play,” Mr Osorio since assuming office after the impeach- has kept tight control of the national State Grid, the company’s total stake
said of CPFL’s development of a profes- ment of Dilma Rousseff last week. grid and power generation, making for- would reach 68 per cent.
sional services team skilled in mergers The signing of the CPFL deal was eign investment in the sector nearly Additional reporting by Christian Shepherd
and acquisitions at the holding com- one of nine corporate deals between Brazil president Michel Temer with China counterpart Xi Jinping — Lintao Zhang/Getty impossible. in Beijing

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16
Telecoms
Brussels gets
tough with
operators over
roaming charges
Mobile groups are facing
fresh revenue hit from
90-day free service
DUNCAN ROBINSON — BRUSSELS
Telecoms groups across the EU will have
to offer customers free roaming for at
least 90 days per year, after the Euro-
pean Commission hit the industry with
tough new draft guidelines.
After years of lobbying and political
wrangling, the EU agreed to curtail
roaming fees last year, signalling an end
to what had become a cash cow for
mobile operators. In a compromise, the
final rules introduced “fair usage” crite-
ria — an attempt to stop people simply
buying a phone contract in a poorer
country and then permanently using it
in a more affluent one where call
charges were higher.
Under the draft plan, customers will
be able to benefit from free roaming for
up to 30 days at a time. Likewise, day
trips will not count towards the 90-day
quota. Users who have an “unlimited”
data or call package will benefit from
free roaming as long as it is in line with
the average usage of such a deal.
The guidelines, which were tougher
than many operators had expected, are
part of Brussels’ stricter line on the tele-
coms sector, coming after stringent new
rules on net neutrality.
Industry groups had expected a mini-
mum lower than 90 days, meaning that
Under the guidelines, day trips will
not count towards the 90-day quota
Businesses For Sale
Contracts & Tenders
revenues are likely to take a larger than
expected hit. Before the legislation,
roaming charges accounted for between
5 and 6 per cent of operator revenues,
according to Deloitte. “This fair-use
clause is not that fair and it will just add
further pressure on roaming revenues,”
said one industry source.
If a customer breaks through these
fair usage rules, telecoms companies
will be able to charge 0.85 cents per
megabyte of data and 4 cents per
minute of calls. “Such situations would
be very limited due to the proposed fair-
use policy,” said Nathalie Vandystadt, a
spokesperson for the commission.
Facebook’s messaging
service WhatsApp and
Microsoft’s Skype also
under regulatory spotlight
Brussels has introduced a lot of regu-
lation in the telecoms sector in recent
years. The EU’s new rules on net neu-
trality were tightened further by
national regulators last week.
The fresh guidelines on net neutrality
ban telecoms groups from offering ad-
blocking on a network level — taking
away one of the few levers the industry
had against advertising-funded internet
platforms such as Google and Facebook.
Brussels will also try to regulate the
likes of Facebook’s messaging service
WhatsApp and Microsoft’s Skype more
tightly under new telecoms rules to be
unveiled next week. The telecoms sec-
tor had argued for years that it had faced
stricter regulation than online rivals
that offer similar services, on issues
such as security and privacy.
Brussels is also expected to loosen
competition rules on co-investment in
the sector, as part of a plan to give every
household in the EU access to broad-
band of 100 megabits per second within
a decade. “Today’s decision increases
expectations of the sector for pro-
investment telecoms reform,” said one
industry figure.
★ FINANCIAL TIMES
COMPANIES
A Car2Go ‘ride-sharing’ vehicle sits waiting for its next customer in San Diego, California, where carpooling is becoming more common — Mike Blake/Reuters
Millennials’ ambitions point to open
road ahead for US new car sales
Vehicle sharing looks set to
trim only 0.3% from sector as
youngsters aim for ownership
PATTI WALDMEIR — CHICAGO
Each day bring s a new disruption to the
US car industry: a new ride-hailing
rivalry, a new self-driving taxi, a new
prediction about the end of the automo-
tive world as we know it.
As an entire generation grows up
steeped in the habits of the sharing
economy, conventional wisdom is that
young people will share more and buy
fewer cars, depressing new car sales for
US carmakers.
Indeed, US light vehicle sales fell more
rapidly than expected year-on-year
in August, down 3.4 per cent to yield a
seasonally adjusted annual rate of
16.9m, says Wards Auto. That has exac-
erbated concerns that US car sales have
peaked after six years of rapid growth.
But automotive analysts say reports
of the demise of the American dream of
mass car ownership are greatly exagger-
ated: there are plenty of reasons for
Americans to share rides or cars, but
still plenty of reasons not to do so —
from economic to emotional.
Most US cars sit idle for most of every
day, so the economic case for sharing is
obvious. In congested urban areas, own-
ing a personal car means paying astro-
nomical fees for parking, and wasting
economically useful time in traffic jams.
Ride sharing can mean getting from
point A to point B while doing email, for
only a low multiple of the cost of public
transport (where it exists).
Despite that, Michelle Krebs of
Telecoms
Telefónica plans masts arm
IPO and weighs up O2 options
TOBIAS BUCK — MADRID
Telefónica is planning to float at least
25 per cent of its Telxius infrastructure
arm on the stock market and is weigh-
ing a separate listing or sale of its O2
mobile business in the UK, as the Span-
ish group steps up its long-running
battle to reduce its €53bn debt load.
The Madrid-based telecoms group has
been under pressure to make up for the
£10.5bn it was hoping to receive for O2
as part of an agreed sale to CK
Hutchison. That deal was scuppered by
the European Commission in May over
fears the tie-up with Hutchison’s Three
would reduce competition in the UK.
Telefónica said in a regulatory filing
yesterday it was now in the process of
“analysing different strategic alterna-
tives” with regard to O2, including an
initial public offering. The group
stressed it would retain majority control
in all the scenarios under consideration.
In a separate filing, Telefónica said it
was planning to go ahead with its
planned listing of Telxius in the second
half of the year. The flotation was ini-
tially expected to take place earlier in
Automobiles. Disruption test
Autotrader, whose sister company Kel-
ley Blue Book recently surveyed US atti-
tudes to ride sharing, says: “The highest
users of car and ride-sharing services —
urban millennials — also had the highest
intent to buy a car.”
Among Generation Z, today’s teens,
92 per cent own or plan to own a vehicle,
a KBB survey found. “That bodes well
for car buying,” says Ms Krebs.
But affordability remains an issue,
she says, with more than half of
those surveyed recently by Cox Auto-
motive citing the main reason for not
owning a car as an inability to afford it —
not the availability of sharing alterna-
tives.
And as millennials get married, start
families and enter their peak earning
years — a few years later than the gener-
ation before them — carmakers say they
are buying cars in roughly the same pro-
portion as previous generations.
A recent study from BCG, the consul-
tancy, predicts that car sharing will cut
Car-sharing impact on US car sales will be limited
Vehicle car sales (’000), 2021
Europe
Projected car sales 21,333
Sales into
car-sharing fleets 96
Lost car sales
-278
Total -182
Sources: IHS; Boston Consulting Group
the year, but was pushed back by mar-
ket volatility triggered by the June refer-
endum on Britain’s EU membership.
Telxius owns and operates about
16,000 mobile masts in Spain, Germany,
Brazil, Peru and Chile. It also owns more
than 31,000km of fibre-optic underwa-
ter cables, making it one of the largest
submarine cable operators in the world.
Telefónica’s infrastructure business
recorded pro-forma revenues of €691m
in 2015, and produced operating income
before depreciation and amortisation of
€323m, the group said.
José María Alvarez-Pallete, the chair-
man of Telefónica, said the group would
decide on the final pricing and timing of
the Telxius listing in the next weeks, but
was planning to keep a majority stake in
the infrastructure business. He added
that a partial listing of O2 would be
expected before early 2017, but also
mentioned a partial sale as an option.
“We have decided that we are not
going to sell the control of O2 in Britain,”
he said, in remarks quoted by Reuters.
Telefónica shares closed up 2.06 per
cent at €9.29.
See Lex
new sales globally by less than 1 per cent
a year by 2021 — and only 0.3 per cent in
North America.
“Although car sharing will expand
relatively quickly and widely it will
have only a minimal effect on new-car
sales, both because most drivers will not
forego car ownership entirely and
because some share of lost car sales will
be partially offset by sales into car-
sharing fleets,” the report concludes.
Erich Merkle, Ford US sales analyst,
says total miles driven will also have
an impact on sales. “Right now the aver-
age age of a car is 12 years old, if people
are pooling or sharing, that car won’t
last as long and be replaced more
quickly.”
Mark Wakefield, head of Americas
automotive at AlixPartners, says his
group did a study of 10 key US car shar-
ing markets and found that sharing was
displacing vehicle purchases at a rate of
32 to one. But many were used cars
rather than new, and Mr Wakefield
North America Asia-Pacific
18,882 38,144
44
106
-52
-462
-8 -356 -550
Legal Notices
Tuesday 6 September 2016
acknowledges that conclusions based
on urban markets cannot easily be
extrapolated to the entire US, much of
which is suburban or rural.
Brian Collie, one of the authors of the
BCG study, says: “Today, the economics
of sharing make quite a bit of sense in
urban areas where miles driven are rela-
tively low and parking is difficult.
“Contrast that with the suburbs or
more rural areas, where driving dis-
tances are far greater, parking is not an
issue and it can take up to 20 minutes to
get a [shared] car,” he says, adding:
“Outside of urban environments today,
it is simply hard to make the economics
work. In the US, we have a lot of cities
like Atlanta and Houston that look
much more like suburbs.”
Joe Ricci is a car dealer in Detroit, a
US city that has more parking and less
congestion than many global cities. He
says carpooling lots are full on workdays
but adds: “We’ve got a long, long way
before I see an impact on sales.” He says
owning a car “is freedom”. “It’s always
been that way and it will always be
that way.”
But analysts agree it is not an all-or-
nothing question. “People think of car
sharing as a binary thing, that’s where
we are all going, but it can exist as one of
many options,” says Mr Wakefield.
Ms Krebs says the jury is still out on
whether, for example, millennials who
buy one car may use ride sharing to
replace what, in earlier generations,
would have been their second car.
In the long run, car sharing, self-driv-
ing vehicles and other new technologies
will disrupt Henry Ford’s industry.
But it may be too soon yet to
know exactly how great will be the
dislocation.
Public Notice
Tuesday 6 September 2016 ★ FINANCIAL TIMES 17
18 FINANCIAL TIMES Tuesday 6 September 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 $

-0.22% -0.090% -0.075% -0.725% -0.119%

0.42% 0.43% 0.39% 0.08% 0.66% 1.65% 0.31% 1.26% 0.12%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Aug 06 - Sep 02 Index All World Aug 06 - Sep 05 Index All World Aug 06 - Sep 05 Index All World Aug 06 - Sep 05 Index All World Aug 06 - Sep 05 Index All World Aug 06 - Sep 05 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
14,795.70 6,894.60 17,037.63 2,060.08
10,672.22
2,179.98
2,164.25 14,528.78 6,634.40 10,367.21 16,254.89 2,017.94
Day 0.42% Month 1.06% Year NaN% Day 0.76% Month 2.20% Year 9.23% Day -0.22% Month 1.34% Year 13.93% Day -0.11% Month 1.21% Year NaN% Day 0.66% Month 4.82% Year -4.24% Day 1.07% Month 3.00% Year 9.23%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,380.00 8,953.30 23,649.55
5,249.90
47,907.28 2,851.74
1,344.81 8,539.40 2,831.96
5,166.25 47,194.15 22,146.09
Day 0.43% Month 1.27% Year 13.24% Day 0.25% Month 1.50% Year 12.07% Day 0.08% Month 2.62% Year -0.91% Day 0.50% Month 6.77% Year -8.84% Day 1.65% Month 8.32% Year 13.48% Day 1.71% Month 0.70% Year -0.42%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
59,659.05 4,541.08 17,190.44
28,532.11
3,072.10
18,491.96 57,661.14 4,410.55 16,236.41 27,697.51
18,352.05 2,976.70
Day 0.39% Month 0.48% Year 15.15% Day 0.07% Month 3.50% Year 28.35% Day -0.02% Month 4.50% Year 0.40% Day 0.04% Month 3.39% Year -19.94% Day 0.16% Month 3.01% Year -2.79% Day 0.38% Month 1.89% Year 11.04%

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 15959.92 15965.65 Cyprus CSE M&P Gen 68.20 68.48 Italy FTSE Italia All-Share 18843.71 18830.86 Philippines Manila Comp 7764.05 7807.42 Taiwan Weighted Pr 9090.13 8987.55 Cross-Border DJ Global Titans ($) 248.23 248.01
Australia All Ordinaries 5524.40 5470.60 Czech Republic
PX 880.84 875.71 FTSE Italia Mid Cap 30507.53 30438.69 Poland Wig 47984.67 47405.71 Thailand Bangkok SET 1492.52 1521.48 Euro Stoxx 50 (Eur) 3079.75 3079.74
S&P/ASX 200 5429.60 5372.80 Denmark OMXC Copenahgen 20 990.99 996.35 FTSE MIB 17190.44 17183.90 Portugal PSI 20 4779.31 4762.83 Turkey BIST 100 76884.32 75852.80 Euronext 100 ID 896.04 895.68
S&P/ASX 200 Res 2958.20 2895.40 Egypt EGX 30 8136.44 8158.04 Japan 2nd Section 4363.15 4354.40 PSI General 2545.49 2534.84 UAE Abu Dhabi General Index 4472.20 4480.65 FTSE 4Good Global ($) 5497.87 5492.82
Austria ATX 2380.59 2369.03 Estonia OMX Tallinn 1001.85 999.58 Nikkei 225 17037.63 16925.68 Romania BET Index 7008.25 7004.84 UK FT 30 3030.10 3043.60 FTSE All World 278.29 277.42
Belgium BEL 20 3637.26 3632.40 Finland OMX Helsinki General 7979.72 8001.14 S&P Topix 150 1112.91 1110.39 Russia Micex Index 2015.66 2003.77 FTSE 100 6879.42 6894.60 FTSE E300 1380.00 1378.94
BEL Mid 6012.83 6007.34 France CAC 40 4541.08 4542.17 Topix 1343.85 1340.76 RTX 976.28 969.86 FTSE 4Good UK 6137.46 6147.14 FTSE Eurotop 100 2709.88 2709.16
Brazil Bovespa 59659.05 59616.40 SBF 120 3608.52 3607.15 Jordan Amman SE 2083.54 2083.07 Saudi-Arabia TADAWUL All Share Index 6099.03 6021.81 FTSE All Share 3750.71 3756.40 FTSE Global 100 ($) 1366.72 1366.24
Canada S&P/TSX 60 861.56 Germany
855.60 M-DAX 21772.29 21733.31 Kenya NSE 20 3187.87 3179.23 Singapore FTSE Straits Times 2851.74 2803.92 FTSE techMARK 100 4359.63 4343.46 FTSE Gold Min ($) 1763.82 1711.93
S&P/TSX Comp 14795.70 14683.91 TecDAX 1754.55 1753.91 Kuwait KSX Market Index 5395.49 5409.21 Slovakia SAX 318.01 315.23 USA DJ Composite 6440.07 6405.63 FTSE Latibex Top (Eur) 3384.60 3308.70
S&P/TSX Met & Min 670.38 688.63 XETRA Dax 10672.22 10683.82 Latvia OMX Riga 635.36 635.97 Slovenia SBI TOP 733.58 732.55 DJ Industrial 18491.96 18419.30 FTSE Multinationals ($) 1572.95 1562.00
Chile IGPA Gen 20546.90 20543.60
Greece Athens Gen 578.27 582.13 Lithuania OMX Vilnius 534.73 535.06 South Africa FTSE/JSE All Share 53622.00 53500.07 DJ Transport 7946.79 7917.56 FTSE World ($) 492.39 491.09
China FTSE A200 8365.30 8357.04 FTSE/ASE 20 1554.77 1570.18 Luxembourg LuxX 1616.36 1596.50 FTSE/JSE Res 20 31895.46 31713.92 DJ Utilities 673.11 664.75 FTSEurofirst 100 (Eur) 3888.24 3890.65
FTSE B35 9599.94 9556.30
Hong Kong Hang Seng 23649.55 23266.70 Malaysia FTSE Bursa KLCI 1678.08 1671.79 FTSE/JSE Top 40 47078.69 46972.62 Nasdaq 100 4798.74 4783.94 FTSEurofirst 80 (Eur) 4214.80 4215.87
Shanghai A 3216.02 3210.79 HS China Enterprise 9830.57 9686.88 Mexico IPC 47907.28 47787.99 South Korea Kospi 2060.08 2038.31 Nasdaq Cmp 5249.90 5227.21 MSCI ACWI Fr ($) 420.17 417.35
Shanghai B 353.38 353.18 HSCC Red Chip 4010.54 3936.99 Morocco MASI 9933.46 9881.24 Kospi 200 259.64 256.50 NYSE Comp 10856.92 10771.93 MSCI All World ($) 1734.60 1723.55
Shanghai Comp 3072.10 3067.11
Hungary Bux 28408.18 28189.60 Netherlands AEX 464.13 463.60 Spain IBEX 35 8953.30 8908.90 S&P 500 2179.98 2170.86 MSCI Europe (Eur) 1415.06 1389.23
Shenzhen A 2111.01 2101.83
India BSE Sensex 28532.11 28423.48 AEX All Share 706.02 704.66 Sri Lanka CSE All Share 6523.47 6539.09 Wilshire 5000 21224.32 21238.05 MSCI Pacific ($) 2353.00 2365.38
Shenzhen B 1176.94 1167.75 S&P CNX 500 6627.95 6634.30 New Zealand NZX 50 7492.03 7426.11 Sweden OMX Stockholm 30 1345.44 1359.14 Venezuela IBC 11843.12 11962.25 S&P Euro (Eur) 1410.32 1410.08
Colombia COLCAP 1394.38 1379.41
Indonesia Jakarta Comp 5356.95 5353.46 Nigeria SE All Share 27756.67 28419.92 OMX Stockholm AS 480.68 485.01 Vietnam VNI 664.55 669.19 S&P Europe 350 (Eur) 1418.85 1417.46
Croatia CROBEX 1817.05 1823.65
Ireland ISEQ Overall 6315.06 6299.31 Norway Oslo All Share 663.11 665.18 Switzerland SMI Index 8310.37 8294.30 S&P Global 1200 ($) 1930.72 1926.71
Israel Tel Aviv 100 12.67 12.72 Pakistan KSE 100 39278.11 39278.11 Stoxx 50 (Eur) 2923.34 2922.57
(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 Sep 05 %Chg %Chg Sep 05 %Chg %Chg Sep 05 %Chg %Chg Sep 05 %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
Apple 28.9 107.73 1.00 Arm Holdings 565.0 1700.00 -1.00 Total 220.0 44.27 0.29 Mitsubishi Ufj Fin,. 593.9 567.10 -8.40 Associated British Foods 3144.00 6.2 -6.3 Go-ahead 2167.00 9.4 -18.8 Gulf Marine Services 47.25 22.7 -54.5 Automobiles & Parts 7645.48 5.8 6.1
Bristol-myers Squibb 19.2 56.35 -0.41 Hsbc Holdings 124.7 581.60 -0.74 Intesa Sanpaolo 206.5 2.19 0.00 Sumitomo Mitsui Fin,. 428.7 3669.00 -28.00 Hsbc Holdings 581.60 6.1 8.2 Nmc Health 1425.00 8.3 70.9 Flybe 51.50 18.4 -43.7 Banks 3674.55 5.0 -3.8
Amazon.com 16.9 772.44 1.82 Bp 99.3 434.80 3.76 Royal Dutch Shella 201.0 22.63 0.28 Toyota Motor 389.8 6264.00 -2.00 Standard Chartered 658.50 5.7 16.8 Sports Direct Int 332.30 7.8 -43.0 Cambian 86.00 14.7 -38.5 Food Producers 8960.86 4.2 1.2
Bank Of America 16.2 16.00 0.02 Lloyds Banking 81.8 59.65 -1.31 Eni 191.1 13.72 0.00 Softbank . 376.0 6938.00 69.00 Gkn 327.00 5.2 5.5 Zoopla Property 330.00 7.5 36.2 Georgia Healthcare 292.00 14.5 88.4 Life Insurance 7097.44 3.4 -9.3
Procter & Gamble (the) 15.4 88.20 -0.11 Vodafone 77.0 227.10 -1.33 Nestle N 176.4 72.34 0.00 Mizuho Fin,. 361.5 182.10 0.80 Barclays 173.25 5.1 -20.3 Safestore Holdings 383.00 6.1 7.2 Imagination 237.00 12.7 81.4 Food & Drug Retailers 2745.77 2.6 9.7
Facebook 15.3 126.51 0.34 Royal Dutch Shell 76.1 1890.50 30.47 Roche Gs 173.2 222.28 0.00 Tokyo Electric Power ,orporated 291.3 431.00 0.00 Babcock Int 1082.00 4.6 6.4 Wizz Air Holdings 1626.00 5.9 -10.5 Sanne 473.00 8.6 27.8 Electricity 9109.58 2.5 3.7
Johnson Controls 14.9 45.45 0.41 Glaxosmithkline 73.0 1644.50 -10.65 Unicredit 171.3 2.35 0.00 Fast Retailing Co., 289.7 37120.00 1420.00 Aviva 437.70 4.5 -15.2 Cobham 169.50 5.5 -40.2 The Gym 225.00 8.4 6.5 Nonlife Insurance 2727.96 2.2 10.9
Broadcom 14.0 173.11 -3.98 Royal Dutch Shell 73.0 1972.50 -2.58 Novartis N 169.7 71.20 0.00 Sony 239.8 3401.00 51.00 3i 640.50 4.5 33.0 Spire Healthcare 369.20 5.5 17.8 Equiniti 173.25 8.2 -2.7 Aerospace & Defense 4732.08 2.0 14.4
Tyco Int 13.3 45.59 0.58 Bhp Billiton 71.6 1004.00 8.41 Bnp Paribas Act.a 165.8 47.38 -0.44 Tdk 157.7 7410.00 280.00 Standard Life 368.00 4.2 -5.4 Diploma 885.50 5.4 16.4 Liontrust Asset Management 344.00 7.5 23.4 Personal Goods 31428.66 2.0 21.7
Hospira 11.8 89.95 -0.01 Sabmiller 70.5 4393.00 -1.00 Santander 148.7 4.12 0.02 Nomura Holdings, . 147.2 482.40 -13.70 Legal & General 215.60 4.1 -19.4 Indivior 331.30 5.3 76.4 Polar Capital Global Fins Trust 106.00 6.2 3.1 General Industrials 5349.42 1.3 21.7
Tesco 169.50 3.7 13.5 St.modwen Properties 286.30 5.1 -31.3 Hss Hire 83.00 6.1 15.3 Health Care Equip.& Services 7814.23 1.3 7.8
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
Prudential 1402.00 3.6 -8.4 Brewin Dolphin Holdings 278.70 5.1 -10.1 Chesnara 349.00 6.1 4.5 General Retailers 2722.59 1.2 -9.4
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Verisign 79.02 4.21 5.63 Zoopla Property 330.00 20.11 6.57 Deutsche Wohnen Ag 28.23 1.12 4.15 Nippon Yusen Kabushiki Kaisha 205.00 14.00 7.33 Royal Dutch Shell 1890.50 -98.8 -98.5 Grafton 521.00 -11.1 -27.9 Carclo 125.00 -19.6 -0.8 Industrial Metals 1291.17 -5.1 79.0
Chesapeake Energy 6.60 0.35 5.60 Carillion 270.00 8.88 3.40 Zodiac Aerospace 21.03 0.60 2.96 Mitsui O.s.k.lines, 259.00 16.00 6.58 Bhp Billiton 1004.00 -7.0 32.1 Allied Minds 332.30 -10.9 -16.9 Braemar Shipping Services 360.00 -11.3 -19.3 Mining 11308.61 -4.9 54.0
Anadarko Petroleum 56.49 2.95 5.51 Acacia Mining 498.70 14.66 3.03 Rwe Ag 8.83 0.24 2.81 J.front Retailing Co., 1327.00 73.00 5.82 Fresnillo 1673.00 -6.1 137.4 Restaurant 381.00 -9.7 -44.4 Lamprell 61.75 -9.5 -37.9 Mobile Telecommunications 5108.57 -2.6 0.1
Range Resources 40.47 1.40 3.58 Nmc Health 1425.00 41.41 2.97 Arcelormittal 5.59 0.15 2.74 Isetan Mitsukoshi Holdings 1042.00 42.00 4.20 Anglo American 814.00 -5.2 171.8 Onesavings Bank 263.40 -7.3 -25.5 Lindsell Train Investment Trust 768.00 -8.3 36.0 Forestry & Paper 16792.55 -2.4 16.9
Nrg Energy 11.98 0.38 3.28 Cobham 169.50 4.88 2.96 Pandora A/s 130.53 3.02 2.37 Fast Retailing Co., 37120.00 1420.00 3.98 Rio Tinto 2327.00 -5.1 18.3 Vectura 127.00 -7.2 -27.5 Spirent Communications 80.50 -8.3 12.6 Fixed Line Telecommunication 4469.55 -0.7 -15.9
Antofagasta 507.00 -5.0 9.6 Talktalk Telecom 199.60 -6.9 -7.3 Renold 40.25 -8.0 -29.1 Pharmaceuticals & Biotech. 14299.71 -0.7 11.0
Downs Downs Downs Downs
Paddy Power Betfair 9185.00 -4.7 0.2 Acacia Mining 498.70 -6.7 177.0 Kainos 156.25 -8.0 -39.4 Chemicals 12134.36 -0.6 12.6
Carnival 46.39 -2.31 -4.74 Virgin Money Holdings (uk) 304.40 -11.33 -3.57 Grifols Sa 14.99 -14.40 -48.99 Konami 3610.00 -105.00 -2.83
Carnival 3502.00 -3.7 -9.4 Mccarthy & Stone 185.00 -6.3 -25.7 Ecofin Water & Power Opportunities 127.50 -7.7 10.1 Beverages 17128.12 -0.5 11.2
Mylan N.v. 39.97 -1.95 -4.65 Redefine Int P.l.c. 42.10 -1.44 -3.31 Bayerische Motoren Werke Ag 64.40 -4.15 -6.05 Sumco 867.00 -25.00 -2.80
Intu Properties 305.60 -2.8 -3.8 Centamin 155.20 -6.3 145.2 Lonmin 203.50 -7.1 143.7 Technology Hardware & Equip. 1997.74 -0.4 56.9
Mallkrodt 72.42 -3.17 -4.19 Countryside Properties 234.30 -7.90 -3.26 Industrivarden Ab 16.14 -0.82 -4.81 Nomura Holdings, . 482.40 -13.70 -2.76
Vodafone 227.10 -2.5 2.8 Ibstock 168.00 -6.2 -24.0 Foxtons 115.75 -6.3 -38.4 Oil Equipment & Services 15358.38 -0.3 18.4
Norwegian Cruise Line Holdings Ltd 35.61 -1.44 -3.89 Royal Bank Of Scotland 197.10 -6.15 -3.01 Svenska Handelsbanken Ab 11.40 -0.50 -4.18 Kuraray Co., 1448.00 -36.00 -2.43
Mondi 1559.00 -2.4 16.9 Hochschild Mining 264.40 -5.2 445.4 Zotefoams 255.00 -6.3 -23.4 Travel & Leisure 8678.95 -0.2 -4.2
Royal Caribbean Cruises Ltd 70.01 -2.70 -3.71 Cranswick 2287.00 -65.00 -2.76 Vonovia Se 29.34 -0.93 -3.08 Sumitomo Osaka Cement Co., 454.00 -11.00 -2.37
Persimmon 1838.00 -2.3 -9.3 Evraz 131.10 -5.1 79.0 Costain 342.75 -6.1 -8.2 Household Goods 16937.07 0.1 2.9
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
Sep 5 Currency Mid Change Mid Change Mid Change Sep 5 Currency Mid Change Mid Change Mid Change Sep 5 Currency Mid Change Mid Change Mid Change Sep 5 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.9800 0.1000 16.6960 0.0863 19.9160 0.1106 Indonesia Indonesian Rupiah 13152.5000 -94.5000 14659.1885 -127.7392 17486.3082 -145.5872 Poland Polish Zloty 3.9037 -0.0111 4.3509 -0.0191 5.1900 -0.0207 ..Three Month 0.7524 0.0009 0.8381 -0.0003 - -
Australia Australian Dollar 1.3186 -0.0059 1.4696 -0.0089 1.7530 -0.0099 Israel Israeli Shekel 3.7652 0.0048 4.1965 -0.0010 5.0058 0.0007 Romania Romanian Leu 3.9913 0.0074 4.4485 0.0015 5.3064 0.0038 ..One Year 0.7533 0.0009 0.8376 -0.0003 - -
Bahrain Bahrainin Dinar 0.3770 0.0000 0.4202 -0.0007 0.5012 -0.0006 Japan Japanese Yen 103.4000 -0.7550 115.2449 -1.0177 137.4708 -1.1604 Russia Russian Ruble 65.0450 -0.1825 72.4962 -0.3138 86.4776 -0.3407 United States United States Dollar - - 1.1146 -0.0017 1.3295 -0.0015
Bolivia Bolivian Boliviano 6.9450 - 7.7406 -0.0118 9.2334 -0.0104 ..One Month 103.3998 -0.7553 115.2448 -1.0178 137.4707 -1.1606 Saudi Arabia Saudi Riyal 3.7506 0.0002 4.1802 -0.0061 4.9864 -0.0054 ..One Month - - 1.1144 -0.2165 1.3296 -0.0015
Brazil Brazilian Real 3.2777 0.0294 3.6532 0.0273 4.3577 0.0343 ..Three Month 103.3996 -0.7558 115.2449 -1.0177 137.4705 -1.1610 Singapore Singapore Dollar 1.3570 -0.0031 1.5124 -0.0058 1.8041 -0.0062 ..Three Month - - 1.1141 -0.2165 1.3297 -0.0015
Canada Canadian Dollar 1.2925 -0.0094 1.4406 -0.0127 1.7184 -0.0145 ..One Year 103.3982 -0.7587 115.2448 -1.0179 137.4707 -1.1619 South Africa South African Rand 14.3822 -0.0866 16.0297 -0.1210 19.1211 -0.1369 ..One Year - - 1.1126 -0.2165 1.3306 -0.0015
Chile Chilean Peso 673.9400 -0.6300 751.1425 -1.8435 896.0062 -1.8523 Kenya Kenyan Shilling 101.2500 - 112.8486 -0.1713 134.6123 -0.1523 South Korea South Korean Won 1105.1500 -12.0500 1231.7493 -15.3207 1469.3019 -17.7008 Venezuela Venezuelan Bolivar Fuerte 9.9900 0.0200 11.1344 0.0054 13.2817 0.0116
China Chinese Yuan 6.6752 -0.0049 7.4399 -0.0168 8.8747 -0.0166 Kuwait Kuwaiti Dinar 0.3018 0.0001 0.3364 -0.0004 0.4012 -0.0003 Sweden Swedish Krona 8.5752 -0.0073 9.5575 -0.0227 11.4008 -0.0227 Vietnam Vietnamese Dong 22301.5000 9.0000 24856.2686 -27.6479 29650.0113 -21.5542
Colombia Colombian Peso 2936.2000 -26.6550 3272.5533 -34.7220 3903.6913 -39.8950 Malaysia Malaysian Ringgit 4.0690 -0.0175 4.5351 -0.0264 5.4098 -0.0294 Switzerland Swiss Franc 0.9805 0.0002 1.0928 -0.0015 1.3035 -0.0013 European Union Euro 0.8972 0.0014 - - 1.1929 0.0005
Costa Rica Costa Rican Colon 550.9900 - 614.1080 -0.9323 732.5436 -0.8288 Mexico Mexican Peson 18.5547 -0.1213 20.6802 -0.1667 24.6685 -0.1893 Taiwan New Taiwan Dollar 31.4995 -0.2020 35.1079 -0.2788 41.8787 -0.3162 ..One Month 0.8971 0.0014 - - 1.1928 0.0005
Czech Republic Czech Koruna 24.2434 0.0365 27.0206 -0.0003 32.2317 0.0120 New Zealand New Zealand Dollar 1.3684 -0.0045 1.5251 -0.0073 1.8192 -0.0081 Thailand Thai Baht 34.7100 0.0895 38.6862 0.0412 46.1471 0.0669 ..Three Month 0.8968 0.0014 - - 1.1927 0.0005
Denmark Danish Krone 6.6756 0.0103 7.4403 0.0001 8.8752 0.0036 Nigeria Nigerian Naira 314.7500 -0.5000 350.8058 -1.0907 418.4615 -1.1389 Tunisia Tunisian Dinar 2.2115 0.0028 2.4648 -0.0007 2.9401 0.0003 ..One Year 0.8953 0.0014 - - 1.1921 0.0005
Egypt Egyptian Pound 8.8779 -0.0014 9.8949 -0.0166 11.8032 -0.0152 Norway Norwegian Krone 8.2999 -0.0313 9.2507 -0.0490 11.0348 -0.0541 Turkey Turkish Lira 2.9469 -0.0132 3.2844 -0.0197 3.9178 -0.0219
Hong Kong Hong Kong Dollar 7.7551 -0.0014 8.6434 -0.0147 10.3104 -0.0136 Pakistan Pakistani Rupee 104.3550 -0.0600 116.3093 -0.2435 138.7404 -0.2368 United Arab Emirates UAE Dirham 3.6731 0.0002 4.0939 -0.0060 4.8834 -0.0053
Hungary Hungarian Forint 277.8431 0.0334 309.6711 -0.4328 369.3936 -0.3734 Peru Peruvian Nuevo Sol 3.3950 0.0041 3.7839 -0.0012 4.5137 0.0004 United Kingdom Pound Sterling 0.7522 0.0009 0.8383 -0.0003 - -
India Indian Rupee 66.8525 - 74.5107 -0.1131 88.8807 -0.1006 Philippines Philippine Peso 46.5200 -0.1100 51.8490 -0.2015 61.8485 -0.2164 ..One Month 0.7523 0.0009 0.8383 -0.0003 - -
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 Sep 05 Sep 02 Sep 01 Aug 31 Aug 30 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 3030.10 3043.60 2989.50 2979.50 2990.50 0.00 3054.90 2508.90 Industrial Metals & 85.25 Industrials 13.28 Media 3.70 FTSE 100 Price Change FTSE 100 Price Change
Sep 05 chge% Index Sep 02 Sep 01 ago yield% Cover ratio adj Return FT 30 Div Yield 1.61 1.53 1.56 1.56 1.55 0.00 3.93 2.74 Tech Hardware & Eq 55.93 NON FINANCIALS Index 13.18 Household Goods & Ho 3.62 3I Group PLC 640.50 -2.00 Lloyds Banking Group PLC 59.65 -1.30
FTSE 100 (100) 6879.42 -0.22 6401.01 6894.60 6745.97 6042.92 3.68 0.68 39.99 200.35 5564.21 P/E Ratio net 27.73 29.18 28.56 28.60 28.74 0.00 19.44 14.26 Mining 54.02 Aerospace & Defense 12.66 FTSE 250 Index 3.37 Admiral Group PLC 2078 -8.00 London Stock Exchange Group PLC 2745 -22.00
FTSE 250 (250) 18025.97 0.05 16772.40 18016.45 17849.63 16808.02 2.59 1.92 20.06 330.66 12794.77 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Basic Materials 45.64 Chemicals 12.22 Electricity 2.81 Anglo American PLC 814.00 6.00 Marks And Spencer Group PLC 349.20 -4.90
FTSE 250 ex Inv Co (207) 19443.34 0.03 18091.20 19437.21 19230.81 18319.18 2.63 2.05 18.55 362.54 14075.96 FT 30 hourly changes Technology 39.14 Beverages 11.84 Food Producers 1.48 Antofagasta PLC 507.00 0.50 Mediclinic International PLC 1029 -7.00
FTSE 350 (350) 3808.77 -0.17 3543.90 3815.44 3740.97 3380.57 3.50 0.83 34.32 104.05 6196.30 8 9 10 11 12 13 14 15 16 High Low Industrial Eng 36.09 Gas Water & Multi 11.50 Mobile Telecomms 0.62 Ashtead Group PLC 1272 -12.00 Merlin Entertainments PLC 487.70 -2.50
FTSE 350 ex Investment Trusts (307) 3782.18 -0.18 3519.16 3789.14 3713.49 3358.41 3.53 0.83 34.23 104.31 3169.03 3043.6 3033.7 3025.7 3028 3032.9 3030.2 3031.3 3028.3 3032.2 3046.7 3021.3 Oil & Gas Producers 25.35 Pharmace & Biotech 11.48 Financial Services -0.23 Associated British Foods PLC 3144 -11.00 Micro Focus Intl 1978 -2.00
FTSE 350 Higher Yield (126) 3565.02 -0.06 3317.10 3567.27 3484.95 3090.70 4.80 0.40 51.58 131.63 6014.44 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Oil & Gas 24.99 Health Care 11.11 Consumer Services -1.28 Astrazeneca PLC 4903 -35.50 Mondi PLC 1559 3.00
FTSE 350 Lower Yield (224) 3680.22 -0.30 3424.29 3691.45 3634.20 3349.33 2.00 2.02 24.74 60.72 3964.58 Tobacco 24.46 Nonlife Insurance 10.88 Financials -2.39 Aviva PLC 437.70 1.80 Morrison (Wm) Supermarkets PLC 198.90 1.90
FTSE SmallCap (276) 4927.75 0.53 4585.06 4901.58 4902.61 4568.44 2.87 1.34 26.11 93.69 6895.76 Personal Goods 22.11 FTSE 100 Index 10.45 Leisure Goods -2.56
FTSE SmallCap ex Inv Co (143) 4415.18 0.40 4108.14 4397.80 4380.83 4213.42 2.98 1.79 18.79 86.25 6490.11 FX: EFFECTIVE INDICES Industrial Transport 20.25 Food & Drug Retailer 10.37 Banks -3.22
Babcock International Group PLC 1082 -8.00 National Grid PLC 1079.5 9.00
Bae Systems PLC 555.50 7.50 Next PLC 5610 -70.00
FTSE All-Share (626) 3750.71 -0.15 3489.88 3756.40 3685.63 3334.37 3.48 0.85 33.96 101.39 6170.67 Software & Comp Serv 20.17 Utilities 9.70 Travel & Leisure -4.19
Sep 02 Sep 01 Mnth Ago Sep 05 Sep 02 Mnth Ago Barclays PLC 173.25 -1.05 Old Mutual PLC 198.50 -1.50
FTSE All-Share ex Inv Co (450) 3708.81 -0.17 3450.89 3715.24 3642.22 3298.15 3.52 0.84 33.73 101.72 3158.46 Construct & Material 18.15 FTSE All{HY-}Share Index 9.06 Telecommunications -5.83 Barratt Developments PLC 498.40 -4.60 Paddy Power Betfair PLC 9185 170.00
FTSE All-Share ex Multinationals (564) 1153.52 -0.27 889.57 1156.66 1143.55 1171.76 3.09 1.40 23.13 26.08 2012.57 Australia 91.31 90.98 91.06 Sweden 77.63 77.65 77.65 Electronic & Elec Eq 16.99 Support Services 8.13 Real Est Invest & Tr -6.90 Berkeley Group Holdings (The) PLC 2690 -59.00 Pearson PLC 880.00 2.50
FTSE Fledgling (103) 8276.20 0.09 7700.65 8269.10 8243.56 7771.68 2.54 -0.01-6411.30 137.08 15182.77 Canada 89.65 89.09 89.01 Switzerland 158.67 158.26 160.73 Forestry & Paper 16.64 Equity Invest Instr 8.03 General Retailers -8.62 Bhp Billiton PLC 1004 8.50 Persimmon PLC 1838 -22.00
FTSE Fledgling ex Inv Co (52) 10871.76 0.11 10115.71 10860.02 10809.11 10986.82 2.75 -1.04 -35.07 181.04 19393.91 Denmark 107.70 107.75 107.80 UK 79.93 79.76 79.17 Oil Equipment & Serv 14.66 Health Care Eq & Srv 7.21 Life Insurance -8.91 BP PLC 434.80 3.80 Provident Financial PLC 3028 -72.00
FTSE All-Small (379) 3417.41 0.51 3179.76 3400.13 3400.23 3170.37 2.85 1.27 27.67 64.55 6139.51 Japan 147.51 148.72 150.14 USA 100.03 99.83 99.69 Consumer Goods 14.62 Automobiles & Parts 6.32 Fixed Line Telecomms -15.57 British American Tobacco PLC 4803.5 -62.50 Prudential PLC 1402 -6.50
FTSE All-Small ex Inv Co Index (195) 3291.11 0.38 3062.24 3278.62 3265.84 3147.85 2.97 1.66 20.34 63.94 6128.81 New Zealand 118.38 118.09 116.18 Euro 89.01 89.14 88.94 FTSE SmallCap Index 5.76 Real Est Invest & Se -18.67 British Land Company PLC 667.50 - Randgold Resources LD 7590 125.00
FTSE AIM All-Share Index (817) 795.19 0.06 739.89 794.70 791.23 733.01 1.54 0.64 101.92 6.66 863.75 Norway 87.54 87.33 86.15
Bt Group PLC 392.65 -0.90 Reckitt Benckiser Group PLC 7465 -45.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bunzl PLC 2389 -8.00 RELX PLC 1465 4.00
Oil & Gas (16) 7561.55 1.00 7035.70 7486.32 7282.18 6086.06 6.14 -0.63 -25.74 352.53 6676.73 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Burberry Group PLC 1316 -11.00 Rio Tinto PLC 2327 -
Oil & Gas Producers (9) 7209.66 1.00 6708.28 7138.56 6943.14 5735.48 6.21 -0.66 -24.57 340.57 6586.95 Capita PLC 1058 12.00 Rolls-Royce Holdings PLC 783.00 -0.50
Oil Equipment Services & Distribution (7)15846.54 1.26 14744.53 15649.20 15270.66 17327.55 4.12 0.36 66.87 452.43 12027.99 FTSE GLOBAL EQUITY INDEX SERIES Carnival PLC 3502 -13.00 Royal Bank Of Scotland Group PLC 197.10 -7.20
Basic Materials (27) 4005.79 0.30 3727.21 3993.78 3919.90 3326.80 2.37 0.18 237.57 77.48 4020.97 Centrica PLC 236.50 0.60 Royal Dutch Shell PLC 1972.5 19.50
Chemicals (7) 12922.45 0.01 12023.80 12921.18 12855.02 11106.25 2.30 2.07 21.08 240.37 11343.44 Sep 05 No of US $ Day Mth YTD Total
YTD Gr Div Sep 05 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 1666 -29.00 Royal Dutch Shell PLC 1890.5 20.00
Forestry & Paper (1) 18323.75 0.19 17049.48 18288.49 18100.44 17218.92 2.94 3.44 9.88 539.50 19660.38 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 1474 -7.00 Royal Mail PLC 520.50 -0.50
Industrial Metals & Mining (2) 1383.85 2.12 1287.62 1355.12 1334.47 767.27 0.00 0.00 -7.63 0.00 1207.67 FTSE Global All Cap 7699 475.96 0.7 1.8 5.57.6 663.74
2.5 Oil & Gas 151 346.26 1.3 1.3 13.5 543.72 16.7 3.6 Crh PLC 2580 43.00 Rsa Insurance Group PLC 509.50 1.00
Mining (17) 10892.45 0.33 10134.97 10856.09 10629.45 8983.71 2.37 -0.27 -156.26 206.96 5725.81 FTSE Global All Cap 7079 462.39 0.3 7.3 -0.30.2 624.68
2.5 Oil & Gas Producers 110 322.91 1.5 1.5 13.2 516.55 16.4 3.8 Dcc PLC 7005 20.00 Sabmiller PLC 4393 -1.00
FTSE Global Large Cap 1425 417.86 0.7 1.6 4.87.0 596.95
2.7 Oil Equipment & Services 31 321.90 0.7 0.7 16.0 459.47 18.7 3.1 Diageo PLC 2126.5 -20.00 Sage Group PLC 736.50 -5.00
Industrials (115) 4956.72 0.24 4612.02 4944.99 4872.29 4330.83 2.33 1.09 39.35 77.95 5013.22
Construction & Materials (15) 6429.65 1.26 5982.51 6349.49 6345.32 5176.94 1.99 0.36 137.88 91.78 6686.40 FTSE Global Mid Cap 1638 644.28 0.7 2.0 7.08.7 854.82
2.1 Basic Materials 256 403.89 0.8 0.8 14.9 604.12 17.3 2.5 Direct Line Insurance Group PLC 379.90 -0.60 Sainsbury (J) PLC 246.30 0.20
Aerospace & Defense (9) 4895.34 0.85 4554.90 4853.90 4764.50 4472.31 2.40 -0.50 -83.02 75.54 5148.14 FTSE Global Small Cap 4636 678.73 0.8 2.2 8.29.7 873.17
2.0 Chemicals 125 619.36 0.4 0.4 4.7 930.61 7.0 2.7 Dixons Carphone PLC 376.10 -2.60 Schroders PLC 2824 -11.00
General Industrials (5) 4356.61 0.03 4053.64 4355.13 4275.79 3499.29 2.78 1.12 32.19 61.94 4820.22 FTSE All-World 3063 277.42 0.7 1.7 5.27.3 408.41
2.5 Forestry & Paper 16 215.46 1.1 1.1 9.9 356.91 13.3 3.6 Easyjet PLC 1131 -8.00 Severn Trent PLC 2423 -7.00
Electronic & Electrical Equipment (10) 6322.52 0.56 5882.83 6287.62 6252.94 5368.46 1.97 1.80 28.08 75.89 5676.15 FTSE World 2538 491.09 0.7 1.6 5.07.1 970.49
2.5 Industrial Metals & Mining 62 327.26 0.7 0.7 27.2 488.14 28.8 2.2 Experian PLC 1537 -8.00 Shire PLC 4768 -31.00
Industrial Engineering (12) 10429.39 0.24 9704.10 10404.64 10199.60 8170.36 2.54 1.32 29.84 202.11 12507.40 FTSE Global All Cap ex UNITED KINGDOM In 7374 491.48 0.6 1.6 6.08.0 675.35
2.4 Mining 53 477.72 2.0 2.0 47.6 713.27 50.4 2.1 Fresnillo PLC 1673 5.00 Sky PLC 862.50 5.00
Industrial Transportation (8) 4744.11 0.24 4414.19 4732.91 4683.93 4125.21 3.64 1.07 25.62 123.38 4106.33 FTSE Global All Cap ex USA 5762 432.71 0.9 2.2 3.76.3 643.58
3.0 Industrials 534 328.33 0.3 0.3 9.7 464.17 11.6 2.2 Gkn PLC 327.00 -0.90 Smith & Nephew PLC 1238 -3.00
Support Services (56) 7197.06 -0.22 6696.56 7212.96 7092.94 6459.29 2.21 1.77 25.48 110.85 7344.73 FTSE Global All Cap ex JAPAN 6436 486.87 0.8 1.9 6.18.2 685.36
2.5 Construction & Materials 111 474.27 0.4 0.4 13.2 702.10 15.2 2.0 Glaxosmithkline PLC 1644.5 -10.50 Smiths Group PLC 1371 -1.00
FTSE Global All Cap ex Eurozone 7055 493.09 0.6 1.4 6.38.2 674.78
2.4 Aerospace & Defense 26 533.77 0.8 0.8 5.4 748.49 7.3 2.3 Glencore PLC 181.30 -0.45 Sse PLC 1558 9.00
Consumer Goods (39) 20791.28 -0.88 19345.40 20975.96 20465.72 16295.30 2.68 1.78 20.98 482.50 15033.09
FTSE Developed 2091 445.62 0.6 1.7 4.46.5 626.13
2.5 General Industrials 55 239.51 0.6 0.6 10.4 364.14 12.4 2.4 Hammerson PLC 588.50 -6.50 St. James's Place PLC 976.00 -7.50
Automobiles & Parts (1) 7684.65 -0.27 7150.24 7705.80 7658.80 6349.83 2.68 1.29 29.06 205.63 7284.95
FTSE Developed All Cap 5666 469.08 0.6 1.7 4.96.8 651.56
2.4 Electronic & Electrical Equipment 69 335.94 -0.8 -0.8 6.2 437.43 7.9 1.9 Hargreaves Lansdown PLC 1362 7.00 Standard Chartered PLC 658.50 -2.90
Beverages (6) 17157.49 -0.56 15964.32 17254.85 16968.08 12880.86 2.29 1.54 28.41 385.57 11959.40
FTSE Developed Large Cap 898 410.69 0.6 1.6 4.06.1 585.39
2.6 Industrial Engineering 104 611.75 0.3 0.3 14.2 852.02 16.3 2.4 Hikma Pharmaceuticals PLC 2200 15.00 Standard Life PLC 368.00 -5.40
Food Producers (8) 9013.77 -0.40 8386.93 9049.71 8904.09 8180.02 1.84 1.82 29.98 96.46 7634.97
FTSE Developed Europe Large Cap 223 325.38 1.8 3.8 -1.41.9 529.85
3.6 Industrial Transportation 94 553.13 0.3 0.3 11.7 781.36 13.8 2.4 HSBC Holdings PLC 581.60 0.70 Taylor Wimpey PLC 161.50 -2.70
Household Goods & Home Construction (15)14161.20 -0.85 13176.40 14282.72 14077.06 12949.45 2.27 2.50 17.59 250.41 9809.50
FTSE Developed Europe Mid Cap 306 511.63 1.2 4.0 -0.22.3 751.22
2.7 Support Services 75 295.33 0.5 0.5 7.1 399.81 8.5 1.9 Imperial Brands PLC 4054 -76.00 Tesco PLC 169.50 -2.15
Leisure Goods (1) 5521.07 3.44 5137.12 5337.59 5412.65 5306.64 3.09 1.50 21.61 129.52 4785.85
FTSE Dev Europe Small Cap 703 718.45 0.8 4.4 -1.80.2 2.5 Consumer Goods
1022.83 423 442.04 0.8 0.8 6.1 639.87 8.0 2.4 Informa PLC 715.00 -0.50 Travis Perkins PLC 1670 -5.00
Personal Goods (6) 27361.82 -0.38 25459.01 27465.40 26524.94 20583.93 2.66 3.24 11.64 560.53 18061.53
FTSE North America Large Cap 291 465.28 0.4 1.1 6.68.3 622.25
2.2 Automobiles & Parts 103 362.92 0.0 0.0 -4.9 506.00 -3.0 2.9 Intercontinental Hotels Group PLC 3283 3.00 Tui AG 1044 -2.00
Tobacco (2) 56469.55 -1.45 52542.52 57302.67 55345.76 40958.06 3.35 1.17 25.56 1682.67 35561.25
FTSE North America Mid Cap 394 706.70 0.7 2.1 10.4
11.7 882.76
1.7 Beverages 48 601.30 1.1 1.1 5.2 882.12 6.9 2.5 International Consolidated Airlines Group S.A. 392.30 -0.50 Unilever PLC 3649.5 -13.50
Health Care (19) 10486.97 -0.53 9757.68 10542.89 10261.12 8991.14 3.25 0.40 76.92 299.67 7891.84
FTSE North America Small Cap 1466 720.70 1.1 2.8 12.3
13.6 875.56
1.6 Food Producers 104 612.55 1.1 1.1 9.6 913.78 11.8 2.2 Intertek Group PLC 3553 -15.00 United Utilities Group PLC 992.50 1.00
Health Care Equipment & Services (8) 7893.79 -0.17 7344.84 7907.45 7693.96 6767.94 1.39 2.03 35.31 64.89 6753.37
FTSE North America 685 312.49 0.5 1.3 7.28.9 428.00
2.1 Household Goods & Home Construction 47 433.42 0.5 0.5 7.9 623.70 9.9 2.3 Intu Properties PLC 305.60 -6.80 Vodafone Group PLC 227.10 -1.45
Pharmaceuticals & Biotechnology (11)14191.53 -0.57 13204.62 14272.28 13891.23 12170.72 3.43 0.33 87.11 435.70 9509.25
FTSE Developed ex North America 1406 227.43 0.9 2.3 0.32.9 363.23
3.1 Leisure Goods 31 162.31 0.7 0.7 23.1 210.22 23.8 1.3 Itv PLC 207.50 -1.60 Whitbread PLC 4244 -45.00
Consumer Services (92) 4846.28 -0.11 4509.26 4851.56 4798.67 4735.81 2.56 1.97 19.87 91.09 4460.49 FTSE Japan Large Cap 176 326.29 -0.6 1.1 -0.40.8 413.21
2.3 Personal Goods 79 628.74 0.9 0.9 5.2 864.50 6.7 2.0
Food & Drug Retailers (7) 2864.55 -0.54 2665.34 2879.99 2834.88 2918.92 1.53 2.30 28.42 30.18 3311.74 Johnson Matthey PLC 3315 1.00 Wolseley PLC 4425 -11.00
FTSE Japan Mid Cap 306 494.62 -0.9 -1.5 0.61.7 603.91
1.9 Tobacco 11 1378.20 1.8 1.8 13.2 2755.26 15.9 3.5 Kingfisher PLC 372.40 -2.60 Worldpay Group PLC 293.40 -4.80
General Retailers (30) 2674.22 -0.50 2488.25 2687.68 2658.55 3005.85 2.85 2.13 16.50 49.25 2987.76
FTSE Global wi JAPAN Small Cap 781 528.59 -1.2 -4.3 0.41.7 667.36
2.2 Health Care 176 450.21 0.5 0.5 -1.8 637.03 -0.2 2.0 Land Securities Group PLC 1097 -1.00 WPP PLC 1790 8.00
Media (21) 7819.74 0.37 7275.94 7791.27 7696.25 6973.17 2.79 1.81 19.83 166.90 4721.26
FTSE Japan 482 136.05 -0.7 0.6 -0.21.0 193.52
2.2 Health Care Equipment & Services 63 708.64 0.5 0.5 9.1 817.59 9.7 1.0 Legal & General Group PLC 215.60 -0.80
Travel & Leisure (34) 8459.77 -0.20 7871.46 8476.91 8405.66 8140.48 2.50 1.97 20.23 161.36 7864.38
FTSE Asia Pacific Large Cap ex Japan 549 585.44 0.2 0.6 8.2
11.0 898.26
3.1 Pharmaceuticals & Biotechnology 113 329.68 0.5 0.5 -5.2 486.32 -3.4 2.4
Telecommunications (6) 3747.05 -0.48 3486.47 3765.21 3691.12 3835.26 4.56 -0.23 -93.72 115.66 4046.47 FTSE Asia Pacific Mid Cap ex Japan 420 808.36 0.0 0.9 8.2
10.6 1191.28
2.7 Consumer Services 389 398.62 0.6 0.6 2.3 524.78 3.6 1.8
Fixed Line Telecommunications (4) 4552.41 -0.26 4235.83 4564.32 4491.27 4875.38 3.74 1.74 15.38 115.79 4047.13
Mobile Telecommunications (2) 5100.83 -0.60 4746.11 5131.80 5020.49 5093.24 5.01 -1.04 -19.11 172.86 4935.99
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1443 520.52
969 464.66
0.1
0.2
-0.4
0.7
4.3
8.2
6.4
10.9
755.95
2.7 Food & Drug Retailers
757.41
3.0 General Retailers
52 302.69
122 553.92
1.1
0.4
1.1
0.4
1.0 414.79
4.0 710.92
2.4
5.2
1.9
1.5
UK STOCK MARKET TRADING DATA
Utilities (7) 9263.76 0.53 8619.54 9214.54 8969.35 7855.41 4.39 1.72 13.25 303.54 10215.10 FTSE Emerging All Cap 2033 646.99 1.0 2.1 13.3
16.1 945.99
2.9 Media 84 301.01 1.0 1.0 4.1 397.38 5.5 2.0 Sep 05 Sep 02 Sep 01 Aug 31 Aug 30 Yr Ago
Electricity (2) 9088.90 0.59 8456.83 9035.25 8806.28 8362.10 5.45 1.47 12.50 484.22 12770.40 FTSE Emerging Large Cap 527 610.56 1.0 2.5 13.4
16.3 898.78
3.0 Travel & Leisure 131 375.21 0.1 0.1 -1.6 499.01 -0.3 1.9 SEAQ Bargains 6288.00 5926.00 5926.00 4259.00 5091.00 5077.00
Gas Water & Multiutilities (5) 8795.68 0.52 8184.01 8750.21 8514.68 7305.12 4.13 1.80 13.45 245.09 9694.24 FTSE Emerging Mid Cap 445 824.50 1.0 0.5 16.1
18.8 1196.51
2.7 Telecommunication 91 167.82 0.6 0.6 6.6 304.17 9.8 4.0 Order Book Turnover (m) 75.51 144.23 144.23 152.19 132.45 117.19
Financials (288) 4447.89 -0.34 4138.57 4463.14 4403.39 4434.82 3.84 1.37 18.98 137.11 4015.86 FTSE Emerging Small Cap 1061 673.26 0.3 1.3 9.4
12.0 947.59
2.7 Fixed Line Telecommuniations 42 142.85 0.6 0.6 7.8 283.93 11.3 4.5 Order Book Bargains 671599.00 980493.00 980493.00 974347.00 846245.00 770298.00
Banks (11) 3628.25 -0.56 3375.93 3648.63 3582.40 3800.88 4.67 0.82 26.27 140.22 2611.61 FTSE Emerging Europe 112 306.33 1.6 3.9 14.7
18.5 464.65
4.0 Mobile Telecommunications 49 172.73 0.7 0.7 4.9 282.73 7.6 3.3 Order Book Shares Traded (m) 1170.00 2376.00 2376.00 1697.00 1642.00 1193.00
Nonlife Insurance (10) 3132.17 -0.34 2914.35 3142.94 3077.15 2608.50 2.68 2.30 16.22 71.38 5395.54 FTSE Latin America All Cap 236 806.11 2.1 4.5 34.7
37.1 1212.05
3.0 Utilities 164 258.65 1.5 1.5 9.0 487.41 12.2 3.8 Total Equity Turnover (£m) 6425.34 7108.16 7108.16 7613.54 7616.29 6953.09
Life Insurance/Assurance (10) 7205.17 -0.38 6704.10 7232.98 7043.78 7266.68 4.16 1.35 17.78 251.73 6852.28 FTSE Middle East and Africa All Cap 218 685.18 2.5 -2.5 10.8
12.9 2.8 Electricity
1041.12 111 281.39 1.3 1.3 8.7 524.57 11.8 3.7 Total Mkt Bargains 759428.00 1088607.00 1088607.00 1082182.00 956403.00 865644.00
Index- Real Estate Investment & Services (20) 2502.65 -0.24 2328.61 2508.58 2518.09 3148.61 2.66 3.69 10.19 48.07 6552.90 FTSE Global wi UNITED KINGDOM All Cap In 325 325.34 2.1 4.0 -1.11.9 3.5 Gas Water & Multiutilities
529.84 53 275.94 1.8 1.8 9.6 533.35 12.8 3.8 Total Shares Traded (m) 4881.00 6227.00 6227.00 5359.00 4636.00 3861.00
Real Estate Investment Trusts (28) 2739.30 -0.39 2548.80 2750.05 2761.99 2945.18 3.50 4.03 7.10 70.14 3321.52 FTSE Global wi USA All Cap 1937 537.26 0.5 1.4 7.28.7 2.0 Financials
698.44 691 200.83 0.7 0.7 0.1 320.04 2.6 3.2 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (33) 8022.22 -0.53 7464.34 8065.37 7972.12 7524.62 3.27 1.90 16.08 207.49 8953.24 FTSE Europe All Cap 1419 378.22 1.6 3.9 -0.82.3 3.4 Banks
595.73 247 173.33 0.6 0.6 -2.9 295.86 0.1 3.8 (c) Market closed.
Equity Investment Instruments (176) 8357.46 0.38 7776.26 8325.56 8337.18 7372.92 2.51 0.97 40.85 144.89 4479.84 FTSE Eurozone All Cap 644 354.97 1.5 4.9 -1.11.9 3.3 Nonlife Insurance
565.11 68 218.61 0.8 0.8 1.9 310.85 4.1 2.5
Non Financials (338) 4504.23 -0.09 4191.00 4508.32 4415.69 3853.56 3.37 0.66 45.32 116.45 6487.88 FTSE RAFI All World 3000 3034 5744.53 0.9 3.2 5.98.4 3.2 Life Insurance
7407.34 51 185.28 1.2 1.2 -6.5 289.39 -3.8 3.4
Technology (17) 1999.60 -0.31 1860.55 2005.79 1998.63 1304.13 1.99 1.07 46.87 19.75 2533.85 FTSE RAFI US 1000 996 9558.53 0.6 2.1 8.1
10.0 2.4 Financial Services
12292.64 152 228.86 0.7 0.7 2.9 309.76 4.6 2.1 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (12) 2215.83 -0.12 2061.73 2218.52 2200.22 1607.70 1.91 1.43 36.77 39.30 2965.74 FTSE EDHEC-Risk Efficient All-World 3063 336.68 0.7 1.4 6.78.5 2.2 Technology
460.08 188 191.43 0.3 0.3 9.8 231.59 11.4 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (5) 2436.36 -1.81 2266.93 2481.35 2480.45 1488.48 2.64 -1.01 -37.52 11.42 2817.65 FTSE EDHEC-Risk Efficient Developed Europe 529 280.78 1.4 2.9 0.62.9 2.6 Software & Computer Services
419.44 92 338.53 0.4 0.4 9.1 391.82 10.1 1.0 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 96 139.92 0.3 0.3 10.7 175.26 13.0 2.5 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 Alternative Energy 10 110.15 0.5 0.5 6.5 147.76 7.9 1.3 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6903.47 6896.47 6876.44 6881.14 6886.65 6880.97 6883.40 6874.08 6887.45 6910.11 6867.72 Real Estate Investment & Services 102 296.49 0.4 0.4 4.8 482.98 7.0 2.6
FTSE 250 18068.79 18034.69 18043.03 18005.58 18020.34 18005.01 18023.21 18027.75 18039.46 18093.37 17980.93 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/
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
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4908.85 4922.14 4929.30 4927.78 4929.14 4935.83 4935.35 4934.70 4936.08 4937.65 4908.85
FTSE All-Share 3762.23 3758.35 3750.01 3750.78 3753.72 3750.90 3752.56 3748.60 3754.90 3764.50 3745.20 (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,
Time of FTSE 100 Day's high:07:27:15 Day's Low09:03:30 FTSE 100 2010/11 High: 6941.19(15/08/2016) Low: 5536.97(11/02/2016) WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE All-Share Day's high:07:06:00 Day's Low09:04:00 FTSE 100 2010/11 High: 3773.93(15/08/2016) Low: 3046.53(11/02/2016) 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
Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Belvoir Lettings Int 4.293 2.675 1.071 0.747 2.6 2.5 3.4 3.4 Oct 21 6.782 6.8 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Dechra Pharmaceuticals Pre 247.562 203.48 14.548 25.806 14 22.14 12.91 11.82 Nov 18 18.46 16.94 08/24 100.00 AIM LOOP LoopUp Group PLC 118.50 -6.00 127.00 104.00 4832.9
There are currently no rights offers by any companies listed on the LSE. EVR Holdings Int - - 1.162L 0.036L 0.007L 0.008L - - - - - 07/27 11.00 WDC WideCells Group PLC 13.25 -0.25 13.65 11.00 716.3
Flowgroup Int 41.841 20.534 8.044L 6.991L 2.53L 2.71L - - - - - 07/26 151.00 AIM SECG SEC SpA 153.50 0.00 155.00 151.00 1876.1
Hunting Int 228.4 463.6 77.7L 65.8L 0.348L 0.327L - 4.109 - - 27.3
Plutus PowerGen Pre 0.888 0.088 0.408L 1.311L 0.07L 0.32L - - - - -
Union Jack Oil Int 0.008 - 0.251L 0.256L 0.01L 0.01L - - - - -
Vela Technologies Pre 0.009 0.008 0.351L 0.303L 0.07L 0.12L - - - - -
Vipera Int 3.784 2.629 0.412L 0.525L 0.002L 0.003L - - - - -

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 6 September 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 40.95 -0.01 43.89 31.85 4.64 17.73 251924.4 Lilly (E)♦ 76.85 -0.38 92.85 67.88 2.62 33.27 84830.37
ANZ 27.25 0.41 29.17 21.86 8.90 13.07 60496.9 Nokia 5.10 -0.05 7.11 4.48 3.11-136.95 33170.47 AstellasPh 1608.5 -20.50 1804 1358 1.99 15.95 33505.07 AtlasCpcoB 223.80 2.10 224.30 162.60 2.77 24.87 10184.14 AutomData 90.39 -0.24 96.00 75.73 2.29 27.93 41233.83 Lockheed♦ 243.32 -0.29 266.93 199.01 2.40 23.25 73703.04
BHPBilltn♦ 20.34 0.49 25.77 14.06 9.69 27.94 49542.9 SampoA 38.49 0.74 47.67 34.42 4.72 14.60 23954.71 Bridgestne 3603 23.00 4620 3089 3.89 10.72 28332.76 Ericsson 60.55 -0.35 88.40 59.60 6.15 14.43 21673.19 Avago Tech 173.11 -3.98 179.42 111.53 0.921732.05 68468.22 Lowes 76.96 0.52 83.65 62.62 1.55 24.61 68194.62
CmwBkAu♦ 72.31 1.40 85.85 69.79 8.10 13.99 94057.9 France (€) Canon 3028 47.00 3862 2780 4.97 16.53 39058.37 H&M 266.00 1.10 339.90 234.50 3.44 25.06 45309.58 BakerHu 49.78 -0.05 58.23 37.58 1.36 -7.12 21300.93 Lyondell♦ 79.72 1.24 98.25 69.10 3.98 8.60 33141.35
CSL 104.92 -0.01 121.25 87.68 1.92 29.74 36323.64 Airbus Grpe 53.86 0.67 68.50 48.07 2.39 14.53 46383.79 CntJpRwy 17145 5.00 22935 16305 0.73 9.71 34157.35 Investor 305.50 2.70 331.70 256.80 3.29 -16.06 16227.08 BankAm 16.00 0.02 18.09 10.99 1.16 13.60 163276.78 Marathon Ptl♦ 42.32 0.41 59.99 29.24 3.01 11.71 22377.12
NatAusBk 27.62 0.48 32.76 23.82 9.61 12.54 55653.63 AirLiquide 98.70 -0.24 123.65 88.25 2.61 19.99 38017.73 Denso 4315 7.00 6047 3317 2.79 15.78 33137.39 Nordea Bk 85.20 -0.40 101.80 66.30 6.79 11.36 40238.82 Baxter♦ 46.28 0.10 49.49 32.18 1.02 5.36 25171.12 Marsh&M 68.30 0.51 68.69 50.81 2.06 24.58 35395.62
Telstra♦ 5.15 0.03 5.86 4.98 8.40 17.12 47750.36 AXA 19.33 0.03 26.02 16.11 5.64 8.04 52215.71 EastJpRwy 9085 59.00 12350 8388 1.43 14.42 34214.42 SEB 84.25 -0.55 100.50 67.75 5.06 11.71 21320.09 BB & T 38.49 0.17 39.47 29.95 2.82 14.93 31350.11 MasterCard 97.89 0.27 101.76 78.52 0.74 28.83 105471.64
Wesfarmers 42.60 0.20 44.56 36.65 5.80 22.49 36382.74 BNP Parib 47.38 -0.44 58.17 35.27 4.83 8.93 65818.56 Fanuc 17435 110.00 22790 15300 2.82 24.39 34410.13 SvnskaHn 114.40 -0.20 130.10 90.25 3.96 13.53 25367.05 BectonDick 177.32 0.30 178.79 128.87 1.45 33.99 37756.01 McDonald's♦ 115.83 0.43 131.96 94.31 3.03 22.29 98844.92
Westpc 29.67 0.50 33.74 27.57 8.42 13.02 75294.28 ChristianDior 158.40 0.05 187.50 133.75 1.78 21.08 32083.06 FastRetail 37120 1420 50700 25305 0.83 91.45 38079.83 Swedbank 198.00 0.10 200.20 150.80 5.44 11.94 26137.83 BerkshHat 226050 699.99 226490 186900 - 16.37 178329.49 McKesson♦ 182.98 -0.29 208.03 148.29 0.61 17.98 41298.94
Woolworths 24.05 0.07 28.03 20.30 7.14-326.95 23323.87 Cred Agr 8.68 -0.01 12.10 6.79 6.85 6.88 27187.39 Fuji Hvy Ind 4135 5.00 5223 3252 2.96 8.68 30759.6 Telia Co 38.92 0.25 48.38 35.56 3.88 15.85 19652.83 Biogen 313.59 7.56 333.65 223.02 - 20.80 68714.08 Medtronic 87.32 0.34 89.27 63.98 1.58 38.75 121682.58
Belgium (€) Danone 70.05 -0.20 70.53 52.88 1.88 37.94 51208.44 Hitachi 501.30 5.10 754.60 400.00 2.40 10.56 23433.4 Volvo 95.65 2.05 99.85 72.20 3.07 13.63 18102.68 BkNYMeln 41.65 0.18 44.73 32.20 1.51 16.26 44468.64 Merck 62.98 0.08 64.00 47.97 2.68 41.72 174152.81
AnBshInBv 113.50 0.05 124.20 92.73 3.12 53.67 203445.62 EDF 11.91 0.16 18.77 9.13 13.57 200.17 26713.35 HondaMtr 3177 -8.00 4142 2417 2.78 17.14 55656.75 Switzerland (SFr) BlackRock 373.85 1.68 376.65 280.55 2.38 20.01 60816.77 Metlife 43.26 0.20 52.45 35.00 3.51 11.40 47537.22
KBC Grp 54.55 -0.05 59.89 39.35 3.47 16.39 25419.24 Engie SA 14.72 0.11 16.83 12.34 6.73 -7.65 39953.85 JapanTob 4100 -6.00 4850 3551 3.13 16.89 79303.68 ABB 21.83 0.03 21.90 15.94 - 28.32 49311.9 Boeing 131.16 1.26 150.59 102.10 3.04 23.99 81821.01 Microsoft♦ 57.67 0.08 58.70 42.20 2.40 27.58 449394.37
Esslr Intl 116.60 0.15 125.15 102.10 0.94 32.49 28343.17 KDDI 3127 9.00 3446 2519 1.77 18.60 79248.41 CredSuisse 13.06 0.06 26.55 9.76 4.99 -5.52 27838.29 BrisMySq 56.35 -0.41 77.12 55.11 2.67 33.10 94152.88 Mnstr Bvrg 153.85 -0.48 166.50 113.08 - 46.15 29290.2
Brazil (R$)
Hermes Intl 387.15 1.95 399.00 281.20 0.67 47.58 45553.15 Keyence 71060 -260.00 75820 50500 0.16 - 41785.15 Nestle 79.10 0.05 79.35 70.15 2.46 30.97 251080.48 CapOne 71.64 0.56 81.62 58.03 2.07 11.27 36255.33 MondelezInt 44.19 0.24 47.42 35.88 1.53 9.57 68739.09
Ambev 19.89 0.05 20.46 15.99 2.20 26.42 95378.89
LOreal 173.75 -0.80 177.90 142.35 1.77 34.23 108403.65 MitsbCp 2219.5 73.00 2300 1565 2.26 -28.99 34131.29 Novartis 77.95 0.15 96.15 67.00 3.15 30.92 208866.95 CardinalHlth 79.73 0.03 91.23 73.25 2.01 18.54 25401.1 Monsanto 107.44 0.53 114.26 81.22 1.83 35.71 47013.12
Bradesco 30.00 0.04 32.00 16.27 3.59 9.70 25415.39
LVMH 155.45 -0.75 174.30 130.55 2.26 21.36 87968.85 MitsubEst 1957.5 -4.00 2707.5 1724 0.82 30.96 26327.54 Richemont 59.25 0.70 86.75 56.65 2.55 19.22 31545.21 Carnival♦ 46.39 -2.31 55.77 40.52 2.37 20.41 25555.85 MorganStly 31.89 -0.02 35.74 21.16 1.87 14.69 60967.59
Cielo 32.87 -0.23 37.78 23.36 1.46 19.67 22704.36
Orange 13.66 -0.04 16.98 12.38 3.86 20.72 40498.86 MitsubishiEle 1337.5 -0.50 1409.5 947.00 2.02 12.73 27774.48 Roche 243.10 0.20 281.40 229.90 3.34 23.04 174198.57 Caterpillar 81.69 0.24 84.73 56.36 3.75 52.59 47725.85 MylanNV 39.97 -1.95 55.51 37.59 - 26.98 21380.41
ItauHldFin 32.03 -0.18 32.35 21.49 2.33 7.24 29775.98
PernodRic 106.85 -0.10 110.25 88.00 1.48 33.67 31609.08 MitsuiFud 2271 21.50 3536 2031.5 1.24 19.23 21774.91 Swiss Re 84.95 0.75 99.75 80.70 5.46 7.66 31198.09 CBS 52.22 0.18 58.22 38.51 1.06 18.13 21247 Netflix 97.38 - 133.27 79.95 - 305.63 41749.28
Petrobras 16.08 0.45 16.08 5.67 - -5.94 36511.79
Renault 74.95 0.73 98.14 59.59 2.23 8.28 24703.4 MitUFJFin 567.10 -8.40 841.80 425.80 2.70 11.59 77709.5 Swisscom 477.30 2.60 528.50 445.00 4.61 18.08 25218.08 Celgene 105.49 -0.88 128.39 93.05 - 44.52 81766.85 NextEraE 123.13 2.13 131.98 93.74 2.65 22.12 56882.73
Vale 18.03 -0.21 22.19 8.60 1.75 -3.65 17697.14
Safran 64.60 0.54 72.45 48.87 1.69 -72.04 30026.21 Mizuho Fin 182.10 0.80 263.20 142.00 4.13 5.59 44708.33 Syngent 432.70 - 433.30 288.50 2.56 34.53 40857.33 CharlesSch 31.27 0.29 34.52 21.51 0.80 27.07 41370.33 Nike♦ 58.02 -0.52 68.20 51.48 0.98 29.37 78232.25
Canada (C$) Murata Mfg 13605 -395.00 19820 10365 1.55 14.75 29639.37 Charter Communications 271.79 2.97 272.96 156.13 - 14.90 73635.47 NorfolkS 94.16 0.36 98.75 64.51 2.50 17.71 27640.65
Sanofi 69.99 -0.26 93.82 62.50 4.15 22.24 100544.78 UBS 14.34 -0.08 20.54 13.64 - 11.55 56313.94
BCE 61.86 0.51 63.41 52.38 4.30 19.61 41323.87 NipponTT 4683 12.00 5419 4005 2.35 12.43 94946 ChevrnTx♦ 100.93 0.72 107.58 74.31 4.22-259.92 190406.51 Northrop♦ 213.24 1.41 224.12 161.05 1.39 20.91 38079.26
Sant Gbn 39.74 -0.13 42.46 31.47 1.37 68.48 24574.85 Zurich Fin 255.60 1.40 272.90 194.70 - 28.14 39242.86
BkMontrl 87.02 - 87.92 68.15 3.60 13.86 43102.78 Nissan Mt 1039.5 6.00 1321.5 893.10 4.05 8.52 44140.69 Chubb 127.81 0.71 131.00 99.55 2.10 20.57 59441.81 NXP 88.15 0.20 98.09 61.61 - 21.54 30500.15
Schneider 62.64 -0.19 63.05 45.32 2.69 28.97 41311.6 Taiwan (NT$)
BkNvaS 70.49 0.41 70.80 51.17 4.03 12.47 65234.19 Nomura 482.40 -13.70 809.00 338.80 2.70 16.27 17833.71 Cigna 128.18 0.54 148.99 121.87 0.03 16.70 32887.16 Occid Pet 77.51 0.67 78.48 58.22 3.85 -6.92 59211.92
SFR Group 25.54 1.45 46.48 19.51 - -35.72 12542.45 Chunghwa Telecom 114.00 - 125.50 96.00 4.14 21.08 28075.05
Brookfield♦ 44.63 0.35 46.52 37.11 1.45 26.69 33843.59 Nppn Stl 2215 1.50 2608 1773.5 2.04 35.30 20357.46 Cisco 31.83 0.25 31.95 22.46 2.54 17.34 160095.73 Oracle 41.25 0.09 42.00 33.13 1.33 21.79 170062.61
SocGen 32.80 -0.36 45.90 25.00 3.46 7.62 29525.59 Formosa PetChem 93.30 -0.10 100.50 71.20 4.16 15.84 28215.42
CanadPcR 200.97 -0.46 204.40 140.02 0.77 20.57 22792.87 NTTDCMo 2658.5 2.50 2946 1961 2.64 17.34 101777.43 Citigroup 47.51 0.15 56.46 34.52 0.42 10.02 138034.32 Pepsico 107.87 0.58 110.94 90.43 2.41 33.28 155241.96
Total 44.27 0.29 47.40 35.21 5.12 31.94 123507.65 HonHaiPrc♦ 78.30 0.10 90.10 72.50 4.08 10.21 43074.91
CanImp 104.03 -0.09 104.97 82.19 4.48 10.09 31555.67 Panasonic 1065 0.50 1466 799.00 1.46 15.96 25265.98 CME Grp 108.51 -0.19 109.65 81.87 2.02 27.52 36768.83 Perrigo 90.75 -0.50 184.77 82.50 0.46 106.47 13002.73
UnibailR 248.50 -0.30 257.85 212.05 3.87 9.79 27507.51 MediaTek 256.50 - 307.00 192.00 8.33 17.80 12797.39
CanNatRs 41.36 0.58 42.35 21.27 2.22-106.25 34994.48 Seven & I 4488 34.00 5868 4051 1.46 28.82 38475.36 Coca-Cola 43.66 0.31 47.13 37.84 3.10 25.20 188437.85 Pfizer 34.77 0.09 37.39 28.25 3.32 30.90 210902.73
Vinci 68.82 -0.50 69.80 55.38 2.65 18.05 45657.17 TaiwanSem 177.00 0.50 182.00 122.00 3.29 16.78 145706.44
CanNatRy 85.09 0.44 85.61 66.62 1.61 18.82 50489.14 ShnEtsuCh 7371 -34.00 7639 5160 1.50 20.01 30803.27 Cognizant 58.36 0.77 69.80 51.22 - 22.96 35421.18 Phillips66 78.87 0.58 94.12 71.74 2.92 13.78 41237.13
Vivendi 18.01 0.04 22.73 14.87 15.76 16.41 25819.22
Enbridge 53.25 1.46 57.84 40.03 3.73 38.11 38211.82 Softbank 6938 69.00 7012 4133 0.58 17.62 80562.69 Thailand (THB) ColgtPlm 74.89 0.62 75.38 61.31 2.03 48.22 66763.92 PhilMorris 101.77 1.15 104.20 77.00 3.99 24.45 157878.55
GtWesLif♦ 31.46 0.02 37.10 30.83 4.26 11.64 23992.22 Germany (€) PTT Explor♦ 333.00 -2.00 357.00 197.00 2.74 51.61 27402.71
Sony 3401 51.00 3568 2199 0.50 34.02 41530.31 Comcast 66.16 0.27 68.36 52.34 1.43 21.65 158941.55 PNCFin 90.54 0.55 97.50 77.40 2.24 12.54 44492.18
ImpOil♦ 40.87 0.85 46.27 37.25 1.39 116.99 26608.32 Allianz 135.50 -0.20 170.00 118.35 4.44 10.59 69017.08
SumitomoF 3669 -28.00 5220 2766.5 4.10 6.59 50175.73 United Arab Emirates (Dhs) ConocPhil 40.92 0.32 57.24 31.05 4.82 -7.22 50679.63 PPG Inds♦ 107.04 1.06 117.00 82.93 1.38 19.87 28479.43
Manulife 17.81 -0.05 22.65 15.32 3.98 14.16 26989.61 BASF 73.22 0.12 79.20 56.01 3.62 16.98 74954.87
Takeda Ph 4756 46.00 6250 4098 3.79 24.04 36353.45 Emirtestele 19.70 - 20.20 13.00 4.04 19.31 46645.39 Corning 22.77 0.06 23.13 16.13 2.01 70.25 23609.69 Praxair 123.44 0.59 125.00 95.60 2.36 22.58 35208.99
Potash 23.36 0.03 34.28 19.93 7.71 22.25 15061.95 Bayer 94.24 -0.69 127.25 83.45 2.63 17.87 86858.92
TokioMarine 4155 17.00 5030 3063 2.25 14.49 30440.17 United Kingdom (p) Costco 157.98 1.77 169.73 138.18 0.96 32.66 69205.6 Priceline 1422.85 4.26 1476.52 954.02 - 30.39 70327.14
RylBkC 81.50 0.04 83.00 64.52 3.93 11.85 92967.51 BMW 78.24 -0.33 104.85 63.38 3.51 8.37 52495.6
Toyota 6264 -2.00 7862 4917 3.36 8.81 202216.79 AscBrFd 3144 -11.00 3606 1910 1.08 44.06 33091.68 CrownCstl 96.06 1.31 102.82 75.71 3.60 96.48 32426.35 ProctGmbl 88.20 -0.11 88.87 67.33 2.78 30.05 235439.84
Suncor En♦ 35.63 0.43 40.35 27.32 3.25 -18.31 45552.4 Continental 192.40 -0.40 231.90 162.05 1.93 13.30 42889.31
Mexico (Mex$) AstraZen♦ 4903 -35.50 5505 3680 4.12 37.45 82458.73 CSX♦ 28.14 -0.04 30.53 21.33 2.37 15.83 26620.19 Prudntl♦ 79.49 0.65 88.77 57.19 3.36 8.20 34737.13
ThmReut♦ 55.05 0.26 57.66 47.56 3.18 25.74 31513.3 Daimler 62.78 -0.08 85.50 50.83 5.13 8.50 74858.33
AmerMvl 11.05 0.12 15.36 10.40 2.35 25.68 26360.14 Aviva 437.70 1.80 522.50 290.00 4.75 36.48 23615.65 CVS 93.84 0.47 106.67 86.50 1.64 21.77 100053.61 PublStor 226.79 0.68 277.60 198.56 2.78 39.31 39325.7
TntoDom 58.77 0.10 59.10 48.52 3.34 14.18 83761.82 Deut Bank 13.25 -0.07 27.98 11.06 - -2.27 20368.88
FEMSA UBD 173.65 1.02 183.00 28.35 1.27 39.66 - Barclays♦ 173.25 -1.05 266.41 121.10 3.17 -37.66 38966.53 Danaher 81.19 -0.25 82.64 61.58 0.72 20.75 56064.82 Qualcomm♦ 63.35 -0.12 63.70 42.24 3.10 18.55 93355.63
TrnCan♦ 60.66 0.24 62.44 40.58 3.57 -30.09 37267.88 Deut Tlkm 15.05 -0.02 17.57 13.54 3.14 13.04 78450.54
WalMrtMex 43.16 0.04 47.44 38.98 1.30 27.73 40616.97 BP♦ 434.80 3.80 464.40 249.44 6.92 -20.36 108586.99 Deere 84.05 0.50 88.63 70.16 2.59 18.54 26427.25 Raytheon 140.13 0.17 143.39 102.58 1.99 19.77 41351.66
ValeantPh 37.34 -0.75 325.49 24.32 - -9.80 9838.51 DeutsPost 28.81 - 28.93 19.55 2.92 19.25 38941.88
BrAmTob♦ 4803.5 -62.50 5135 3354.6 3.21 20.74 119062.12 Delphi 70.17 -0.13 88.89 55.59 1.37 17.62 19139.9 Regen Pharm 388.64 -4.76 592.59 329.09 - 60.89 40178.79
E.ON 8.34 0.03 10.24 7.08 5.95 -2.34 18591.13 Netherlands (€)
China (HK$) BSkyB 862.50 5.00 1134 560.00 3.80 23.96 19711.74 Delta 37.17 0.35 52.77 32.60 1.45 6.08 27836.9 ReynoldsAm 50.69 0.94 54.48 41.39 3.06 14.46 72351.93
Fresenius Med 80.07 -0.13 85.65 67.80 0.99 24.86 27336.18 Altice 15.45 -0.01 27.41 9.98 - -14.08 14481.9
AgricBkCh 3.33 0.03 3.35 2.50 5.81 - 13199.25 BT 392.65 -0.90 502.60 359.60 3.29 13.31 51964.52 Devon Energy 44.27 0.57 48.68 18.07 1.75 -1.53 23179.77 S&P Global 125.43 1.49 125.55 78.55 1.00 32.17 33213.86
Fresenius SE 66.17 0.27 70.00 52.39 0.82 24.91 40248.3 ASML Hld 96.10 -0.65 100.50 70.54 0.69 37.08 46413.75
Bk China 3.65 0.08 3.88 2.83 5.86 5.98 39357.66 Compass 1474 -7.00 1521 1000.67 1.99 26.80 32195.92 DiscFinServ 60.02 0.42 60.29 42.86 1.73 12.46 24225.7 Salesforce 75.10 -0.81 84.48 52.60 - -4133.58 51443.5
HenkelKgaA 101.50 0.10 102.15 75.76 1.42 22.07 29389.99 Heineken 81.08 -0.15 86.95 68.13 1.28 27.95 52052.22
BkofComm 6.27 0.18 6.27 4.24 4.85 6.28 28307.44 Diageo 2126.5 -20.00 2218 1687.37 2.70 23.87 71200.08 Disney 94.42 0.16 120.65 86.25 1.34 18.78 151742.49 Schlmbrg♦ 78.55 0.09 83.97 59.60 2.54 -61.63 109238.98
Linde 155.70 0.20 169.70 113.50 1.91 26.47 32231.4 ING 11.44 -0.02 13.88 8.30 2.77 9.43 49424.4
BOE Tech 1.87 0.01 2.65 1.55 0.96 35.08 47.97 GlaxoSmh 1644.5 -10.50 1716.5 1227.5 4.86-16445.00 106597.13 DominRes♦ 74.75 0.69 78.97 64.54 3.59 23.39 46775.79 Sempra Energy 104.30 0.60 114.66 86.72 2.78 27.64 26054.29
MuenchRkv 164.55 -0.40 193.65 140.90 4.45 10.44 29537.26 Unilever♦ 42.69 -0.25 43.11 33.57 2.85 24.89 81587.26
Ch Coms Cons 8.50 0.09 11.06 5.77 2.24 7.90 4852.81 Glencore 181.30 -0.45 200.97 66.67 2.48 -7.17 34696.94 DowChem 54.18 0.38 57.10 39.84 3.01 11.43 61051.67 Shrwin-Will 286.43 1.16 312.48 218.27 1.05 24.28 26415.06
SAP 80.70 0.30 80.85 55.51 1.41 27.32 110497.2 Norway (Kr)
Ch Evrbrght 3.70 0.05 4.00 3.07 5.98 5.22 3277.14 HSBC♦ 581.60 0.70 588.30 392.37 6.64 16.20 153782.66 DukeEner♦ 80.24 0.91 87.31 65.50 4.09 21.21 55280.02 SimonProp 216.69 0.67 229.10 173.79 2.92 38.66 68089.12
Siemens 108.00 -0.60 109.00 77.91 2.69 19.50 102316.05 DNB 101.70 0.10 123.40 90.10 4.36 7.47 19957.82
Ch Rail Cons 9.35 0.05 12.64 6.72 - 8.30 2503.33 Imperial Brands♦ 4054 -76.00 4154 3128 3.48 34.36 51672.7 DuPont♦ 70.09 0.36 75.72 47.11 2.16 28.50 61281.44 SouthCpr 26.10 0.22 31.31 21.55 0.96 34.37 20194.07
Volkswgn 131.50 -0.30 172.15 95.00 0.08 -17.97 43249.49 Statoil♦ 134.80 2.80 150.20 97.25 5.26-198.25 52084.2
Ch Rail Gp 5.70 0.06 7.81 4.21 1.54 9.75 3092.43 LlydsBkg 59.65 -1.30 78.02 47.10 3.77 28.40 56602.94 Eaton 67.54 0.62 68.20 46.19 3.30 16.75 30710.44 Starbucks 56.18 -0.13 64.00 52.63 1.35 31.70 82393.59
ChConstBk 5.99 0.06 6.00 4.31 5.31 5.67 185698.34 Hong Kong (HK$) Telenor 146.30 0.60 173.40 116.80 5.06 152.90 26465.62 eBay 32.28 0.15 32.50 21.52 - 21.25 36444.73 StateSt 70.63 0.51 75.40 50.60 1.78 17.45 27546.77
Natl Grid 1079.5 9.00 1148 824.00 4.00 15.71 54031
China Vanke 20.00 0.12 24.10 14.56 4.17 10.25 3391.22 AIA 50.40 0.45 51.00 36.85 1.26 33.88 78309.68 Qatar (QR) Ecolab 124.05 0.95 124.24 98.62 1.11 39.06 36172.39 Stryker 115.60 0.37 123.55 86.68 1.28 27.38 43232.21
Prudential♦ 1402 -6.50 1578.5 1045.99 2.77 19.61 48073.51
ChinaCitic 5.19 0.06 5.35 4.00 4.76 5.08 9959.74 BOC Hold 28.15 0.55 28.15 18.82 3.59 13.76 38378.03 QatarNtBk 160.00 -1.00 169.80 122.50 2.03 12.69 36895.12 EMC 28.77 -0.09 29.00 22.99 1.59 27.00 56298.35 Sychrony Fin 27.80 0.04 34.60 23.25 - 10.66 23183.13
RBS 197.10 -7.20 337.20 148.40 - -4.57 30804.76
ChinaLife 19.32 0.30 31.15 16.00 2.30 17.96 18538.05 Ch OSLnd&Inv 26.90 0.40 28.25 20.45 1.85 8.26 34203.5 Emerson♦ 52.91 0.25 56.82 41.25 3.57 18.84 34049.57 Target♦ 70.81 0.23 84.14 65.50 2.82 14.82 40706.17
Russia (RUB) ReckittB♦ 7465 -45.00 7786 5621 1.86 34.43 69731.74
ChinaMBank 19.98 0.30 21.95 12.72 4.03 7.23 11827.95 ChngKng 56.00 1.25 65.85 38.20 2.49 11.57 27768.73 EOG Res 88.91 0.36 92.10 57.15 0.75 -9.51 48957.72 TE Connect♦ 63.64 0.46 67.99 51.70 2.13 14.63 22758.69
Gzprm neft 136.07 0.52 170.43 122.75 4.76 4.52 49523.57 RELX 1465 4.00 1473 631.02 2.03 28.23 38871.22
ChinaMob 96.05 1.00 99.30 79.00 2.65 16.82 253598.69 Citic Ltd 12.10 0.12 14.80 10.02 2.24 8.54 45388.66 EquityResTP 64.59 0.18 82.39 63.11 3.26 5.67 23611.27 Tesla Mtrs 197.78 -2.99 271.57 141.05 - -23.45 29408.42
Lukoil 3054 51.00 3059 2040.1 4.69 10.59 39935.74 RioTinto♦ 2327 - 2621 1557 6.72 797.74 42529.97
ChinaPcIns 28.65 0.75 34.25 23.70 1.88 13.57 10252.99 Citic Secs 17.74 0.02 20.45 12.82 1.79 10.69 5211.77 Exelon 34.07 0.26 37.70 25.09 3.37 19.06 31442.26 TexasInstr 69.68 -0.02 72.58 45.33 2.11 23.64 69903.66
MmcNrlskNckl 9713 -4.00 11284 7840 14.98 13.59 23630.38 RollsRoyce 783.00 -0.50 875.50 497.00 2.09 -7.01 19141.43
ChMinsheng 8.51 0.07 8.60 6.13 2.44 5.99 7608.56 CK Hutchison 103.20 0.40 111.80 80.60 3.25 9.65 51362.52 ExpScripts 72.54 0.32 89.20 65.55 - 20.78 45716.09 TheTrvelers 118.84 0.49 119.32 97.18 2.09 11.53 34259.35
Novatek 677.20 -14.30 710.00 535.10 2.02 12.37 31611.74 RylDShlA♦ 1890.5 20.00 2127.4 1256 7.44 -31.20 108728.37
ChMrchSecs RMB 17.79 -0.04 24.95 13.45 4.22 17.69 12800.69 CNOOC 9.62 0.20 10.20 6.41 5.06-165.73 55384.28 ExxonMb♦ 87.42 0.58 95.55 71.55 3.35 34.84 362500.15 ThrmoFshr 151.18 0.23 160.68 117.10 0.37 32.79 59604.66
Rosneft 352.20 2.30 357.80 228.30 3.38 13.75 57386.06 SABMill 4393 -1.00 4590.8 2901.5 1.82 38.04 94858.22
Chna Utd Coms RMB 4.24 0.01 7.27 3.75 1.35 55.68 13463.87 HangSeng♦ 137.40 0.40 149.40 121.10 4.12 17.45 33873.05 Facebook 126.51 0.34 128.33 85.72 - 83.81 293877.51 TimeWrnr♦ 78.53 0.37 81.33 55.53 1.71 17.17 61083.95
Sberbank 149.08 2.20 149.60 72.67 0.26 18.46 49476.21 Shire 4768 -31.00 5562.83 2707.19 0.38 30.47 57180.06
ChShenEgy 14.48 0.14 15.52 10.12 2.57 17.84 6345.73 HK Exc&Clr 194.40 3.60 219.40 160.10 3.04 34.49 30517.2 Fedex 165.49 -0.15 169.57 119.71 0.55 48.00 43945.44 TJX Cos 77.68 -0.05 83.64 63.53 1.15 22.53 51008.18
Surgutneftegas 31.11 -0.01 41.16 29.46 - 3.04 17087.03 StandCh 658.50 -2.90 791.80 373.40 1.57 -6.82 28743.33
ChShpbldng RMB 6.56 0.02 12.21 5.66 0.55 -44.66 17647.9 MTR 42.80 0.15 44.50 33.10 2.21 21.37 32556.64 FordMtr 12.50 0.06 15.84 11.02 4.78 5.92 48779.86 T-MobileUS 47.29 1.04 48.11 33.23 - 34.74 38907.38
Saudi Arabia (SR) Tesco 169.50 -2.15 205.90 137.00 - 61.41 18420.78
ChStConEng RMB 6.38 - 7.44 4.93 2.57 7.86 28621.78 SandsCh 33.00 0.75 33.40 20.75 5.98 27.08 34340.76 Franklin 36.15 0.29 42.23 30.56 1.69 14.09 20826.79 UnionPac♦ 95.28 -0.01 98.28 67.06 2.14 19.23 79360.03
AlRajhiBnk 57.25 0.75 62.75 44.70 2.43 13.15 24806.02 Vodafone 227.10 -1.45 240.10 197.70 4.98 -15.06 80344.45
ChUncHK 9.23 0.17 11.36 7.70 2.16 37.85 28501.58 SHK Props 117.10 5.20 117.70 79.00 1.85 12.44 43715.95 GenDyn 153.81 0.97 153.93 121.61 2.12 17.90 46954.94 UPS B 109.59 0.09 111.83 87.30 2.51 21.52 75756.46
Natnlcombnk 34.50 0.10 57.50 34.00 4.47 7.53 18398.28 WPP 1790 8.00 1875 1204 2.50 27.84 30543.7
CNNC Intl RMB 6.74 -0.01 11.68 6.58 - 28.93 4282.43 Tencent 210.20 8.40 210.60 125.10 0.22 49.67 256583.74 GenElectric 31.29 0.09 33.00 23.85 2.72 52.79 280396.98 USBancorp 44.16 0.13 44.58 37.07 2.30 13.90 75581.32
SaudiBasic 82.25 0.25 92.75 59.50 6.66 14.75 65793.87 United States of America ($)
CSR 7.10 0.07 10.72 6.45 4.41 13.90 4001.84 India (Rs) GenMills 70.94 0.83 72.95 53.53 2.29 28.01 42532.3 UtdHlthcre 136.61 0.87 144.48 107.51 1.55 21.47 130106.19
SaudiTelec 57.75 -0.25 69.75 55.50 6.90 13.75 30797.12 21stC Fox A 24.55 0.01 31.40 22.66 1.13 21.91 26121.38
Daqin RMB 6.35 -0.01 10.04 5.98 7.08 10.42 14142.48 Bhartiartl 318.90 8.05 385.00 282.30 0.69 33.96 19068.4 GenMotors 32.16 0.36 36.88 26.69 4.20 5.24 50231.41 UtdTech♦ 106.93 0.21 109.83 83.39 2.40 23.81 89492.6
Singapore (S$) 3M♦ 180.81 0.83 182.27 134.64 2.35 23.16 109281.62
Gree Elec Apl 0.18 - 0.30 0.16 - -3.86 272.23 HDFC Bk 1285.1 1.40 1295 928.00 0.73 26.93 48870.99 GileadSci 76.89 -0.53 113.31 76.67 2.28 6.81 101468.54 ValeroEngy♦ 54.83 0.54 73.88 46.88 3.81 8.81 25295.32
DBS♦ 15.25 0.22 18.25 13.01 3.95 8.95 28340.77 AbbottLb 42.09 -0.21 46.38 36.00 2.37 32.77 61872.11
GuosenSec RMB 17.47 0.07 23.41 13.28 1.09 13.07 5744.8 Hind Unilevr 920.75 -5.05 951.45 766.40 1.57 52.22 29808.23 GoldmSchs♦ 169.18 0.67 199.90 138.20 1.42 20.57 68596 Verizon 52.88 0.32 56.95 42.20 4.26 15.00 215554.84
JardnMt US$♦ 62.50 1.85 62.54 45.00 2.31 11.34 44451.85 Abbvie 64.12 0.09 68.12 45.45 3.03 20.79 104422.14
HaitongSecs 13.90 0.14 15.50 10.20 3.81 14.60 6111.24 HsngDevFin 1439.15 14.40 1441.95 1011.45 1.10 21.69 34076.15 Halliburton♦ 43.32 0.29 46.90 27.64 1.54 -16.41 37302.96 VertexPharm 95.11 0.36 136.97 75.90 - -84.53 23566.23
JardnStr US$♦ 33.58 0.82 33.72 25.24 0.84 8.48 37199.62 Accenture 115.66 0.60 120.78 91.40 1.74 21.36 94258.09
Hngzh HikVDT RMB 24.68 0.37 32.06 19.77 2.83 24.06 17401.07 ICICI Bk 261.30 0.35 292.70 180.75 1.79 16.05 22739.84 HCA Hold 76.51 1.35 88.46 60.07 - 13.27 28970.22 VF Cp 60.03 -1.53 73.81 52.21 2.13 23.21 24896.71
OCBC 8.71 0.12 9.60 7.41 4.14 10.07 26846.35 Adobe 103.57 0.67 104.16 71.27 - 63.99 51607.99
Hunng Pwr 4.85 0.11 9.89 4.43 11.25 5.76 2939.62 Infosys 1031.85 -5.70 1279.3 1009.1 2.35 17.04 35452.72 Hew-Pack 14.49 -0.01 14.82 8.91 3.76 6.59 24790.59 Viacom 39.90 0.13 53.35 30.11 3.99 7.75 13854.26
SingTel 3.95 0.08 4.36 3.38 4.44 16.23 46409.04 AEP 65.24 0.83 71.32 52.29 3.09 21.01 32079.12
IM Baotou Stl RMB 2.90 0.02 4.55 2.66 - -24.37 6838.96 ITC 262.90 1.90 263.70 178.67 1.48 34.35 47582.23 HiltonWwde 23.74 -0.03 26.27 16.16 1.17 14.36 23497.29 Visa Inc 82.00 0.70 82.15 66.12 0.59 31.40 154687.57
UOB 18.26 0.26 20.78 16.80 3.84 9.39 21627.98 Aetna 116.73 0.57 123.57 92.42 0.85 17.19 40948.88
In&CmBkCh 4.98 0.08 5.19 3.72 5.78 5.83 55735.66 L&T 1505.05 -2.05 1629.6 1016.05 0.91 30.63 20989.64 HomeDep♦ 135.15 0.92 139.00 109.62 1.65 26.14 166987.78 Walgreen 82.22 0.68 95.74 71.50 1.60 31.66 88988.14
Aflac 73.99 0.12 74.50 54.57 2.00 13.14 30304.47
IndstrlBk RMB 16.04 -0.01 17.63 13.76 3.39 6.29 45781.24 OilNatGas♦ 238.75 2.15 267.75 187.75 3.71 11.63 30554.22 South Africa (R) Honywell 116.39 0.26 120.02 91.57 1.97 18.50 88702.62 WalMartSto 72.50 -0.34 75.19 56.30 2.06 15.59 224261.17
AirProd 157.09 0.79 157.51 114.64 2.12 23.65 34017.79
Kweichow RMB 308.50 2.72 326.80 185.00 3.42 23.62 58056.25 RelianceIn 1013.35 -15.85 1089.75 825.10 0.90 12.28 49158.98 Firstrand 45.53 1.13 54.00 34.08 3.86 13.63 17758.12 HumanaInc 177.33 0.80 191.65 150.00 0.65 27.32 26434.11 WellsFargo 50.55 0.12 56.34 44.50 2.75 13.41 255052.41
Alexion 123.67 -1.96 193.45 110.56 - 414.02 27732.75
Midea 1.72 - 2.07 1.64 5.25 11.12 47.69 SBI NewA 254.60 2.60 260.40 148.25 1.01 23.50 29563.6 MTN Grp 122.60 1.10 192.95 109.56 10.44 80.99 15719.52 IBM♦ 159.55 0.01 164.95 116.90 3.02 13.00 152504.94 Williams Cos 28.40 0.25 48.47 10.22 8.18 -32.63 21318.68
Allegran 235.96 -1.80 322.68 195.50 - -38.98 93428.88
New Ch Life Ins 32.20 0.95 37.50 22.00 0.71 10.83 4293.75 SunPhrmInds 782.35 12.30 933.95 704.00 0.35 53.03 28164.65 Naspers N 2519.9 28.90 2553.59 1630.3 0.17 88.30 76748.41 IllinoisTool 121.12 1.48 123.50 79.15 1.81 22.65 42992.79 Yahoo 43.28 0.35 43.60 26.15 - -8.34 41193.15
Allstate♦ 68.95 0.29 70.38 56.03 1.82 17.62 25612.23
PetroChina 5.24 0.06 6.60 4.16 1.93 83.59 14256.32 Tata Cons 2514.8 7.30 2770 2115 1.71 20.21 74121.86 South Korea (KRW) Illumina 167.90 -0.66 213.27 127.10 - 65.22 24614.14 Yum!Brnds 91.26 0.50 91.99 64.58 1.95 27.61 35581.1
Alphabet 796.87 5.47 813.88 617.84 - 31.00 234952.48
PingAnIns♦ 41.85 0.48 46.70 30.50 2.89 10.73 40190.7 Indonesia (Rp) HyundMobis 274000 10500 281000 203500 1.22 15.87 24134.48 Intcntl Exch 285.37 1.02 286.47 223.49 1.12 23.65 34003.01 Venezuela (VEF)
Altria 66.88 0.56 70.15 52.14 3.07 26.07 130673.79
PngAnBnk RMB 9.42 -0.03 11.15 7.85 1.62 7.14 20647.37 Bk Cent Asia 15000 - 15500 11300 1.06 19.60 28118.3 KoreaElePwr 57200 100.00 63700 45600 4.84 2.89 33226.57 Intel 36.08 0.06 36.33 27.68 2.52 16.65 170694.48 Bco de Vnzla 95.00 -5.00 137.00 85.00 - - 538.13
Amazon 772.44 1.82 776.00 474.00 - 192.98 366193.37
Pwr Cons Corp RMB 6.19 -0.06 9.99 5.40 1.54 16.87 8902.18 SK Hynix 37500 850.00 38100 25650 1.27 11.94 23956.09 Intuit 112.07 -0.27 116.97 84.11 1.07 36.77 28907.12 Bco Provncl 2200.01 -99.99 4400 2200 - 0.32 367.79
Israel (ILS) AmerAir 36.53 0.29 47.09 24.85 1.09 3.61 19357.74
SaicMtr RMB 21.94 -0.24 24.36 16.04 5.92 7.89 36238.72 SmsungEl 1606000 9000 1694000 1088000 1.04 14.14 205873.37 John&John♦ 119.32 0.24 126.07 89.90 2.33 23.47 326444.82 Mrcntl Srvcs 4875 - 6200 4300 0.13 34.31 448.97
TevaPha♦ 189.80 -1.90 259.30 189.40 2.66 33.94 51040.62 AmerExpr 65.19 0.33 78.40 50.27 1.65 14.07 60221.28
ShenwanHong 0.16 0.00 0.23 0.12 - -0.24 113.72 Spain (€) JohnsonCn 45.45 0.41 47.32 33.62 2.48 95.10 28985.55
Italy (€) AmerIntGrp 59.86 0.45 64.31 48.41 2.00 601.17 64089.7
ShgPdgBk RMB 16.49 0.01 18.29 12.87 3.12 - 50688.46 JPMrgnCh 67.49 0.28 69.03 52.50 2.66 11.49 243772.69 Closing prices and highs & lows are in traded currency (with variations for that
Enel 4.04 0.00 4.28 3.33 3.28 17.80 45778.53 BBVA 5.70 0.01 8.28 4.50 6.14 17.29 41140.55 AmerTower 115.09 1.27 118.26 83.07 1.72 71.79 48969.55
Sinopec Corp 5.68 0.06 5.88 3.86 3.08 21.84 18686.81 Kimb-Clark 128.82 0.70 138.87 103.04 2.78 24.00 46328.32 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 13.83 0.11 15.85 10.93 5.73 -5.15 56018.35 BcoSantdr 4.12 0.02 5.41 3.15 4.81 10.72 66330.97 Amgen♦ 169.77 -0.36 176.64 130.09 2.10 17.45 127049.23
Sinopec Oil RMB 3.87 0.01 11.58 3.60 - -17.76 1633.96 KinderM 21.92 0.31 32.89 11.20 5.681100.85 48915.71 based on intraday trading over a rolling 52 week period.
Generali 11.51 -0.09 18.09 9.76 6.20 9.84 20010.98 CaixaBnk 2.45 0.00 3.99 1.82 4.86 19.45 16112.5 Anadarko 56.49 2.95 73.87 28.16 1.13 -5.54 28835.74
Denmark (kr) Iberdrola 6.05 0.03 6.71 4.80 0.49 16.24 42899.82 Kraft Heinz♦ 89.61 0.13 90.54 68.18 2.35 691.22 109113.69 ♦ ex-dividend
IntSPaolo 2.18 -0.01 3.32 1.52 6.36 15.40 38569.85 Anthem 124.24 0.88 152.44 115.63 2.04 14.34 32696.37
DanskeBk 196.60 1.10 215.80 161.80 4.03 14.81 28970.87 Inditex 32.40 0.03 35.38 26.60 1.27 37.21 112529.74 Kroger 32.50 0.54 42.75 31.31 1.14 16.71 30842.25 ■ ex-capital redistribution
Luxottica 43.29 -0.37 65.90 41.90 2.04 27.12 23346.97 Aon Cp 112.10 0.75 112.15 83.83 1.09 21.32 29773.76
MollerMrsk 10350 190.00 11490 7355 - -66.38 15598 Repsol 12.52 -0.01 12.86 7.95 6.00 -11.10 20451.91 L Brands 74.19 -0.62 101.11 60.00 2.97 18.09 21329.8 # price at time of suspension
Unicred 2.34 -0.01 6.17 1.70 4.85 8.77 16112.12 Apple 107.73 1.00 123.82 89.47 1.79 12.90 580496.96
NovoB 307.30 2.50 402.90 299.50 1.97 24.21 92645 Telefonica 9.34 0.16 12.57 7.45 7.91 -58.85 51763.76 LasVegasSd 53.93 0.12 54.80 34.88 4.58 26.12 42861.06
ArcherDan♦ 43.82 0.68 47.03 29.86 2.64 17.89 25492.86
LibertyGbl 32.84 0.92 49.24 26.16 - -109.58 8681.89

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
SFR Group 25.54 24.09 1.45 6.00 3.22 14.4 20.65 Firstrand 45.53 44.40 1.13 2.55 -4553.47 -99.0 -6.89 Sep 05 date Coupon S* M* F* price yield yield yield US Sep 05 date Coupon S* M* F* price yield yield yield US
Potash 23.36 23.33 0.03 0.13 2.50 12.0 12.47 MTN Grp 122.60 121.50 1.10 0.91 -12002.40 -99.0 -5.82 High Yield US$ US$
Altice 15.45 15.45 -0.01 -0.03 1.45 10.4 17.50 Naspers N 2519.90 2491.00 28.90 1.16 -240644.10 -99.0 18.80 Navient Corporation 06/18 8.45 BB- Ba3 BB 108.61 3.43 -0.01 -0.25 2.63 Cummins Inc. 02/27 6.75 A+ A2 A 126.95 3.66 0.00 0.10 2.05
Fuji Hvy Ind 4135.00 4130.00 5.00 0.12 379.00 10.1 9.65 HonHaiPrc 78.30 78.20 0.10 0.13 -10.20 -11.5 -11.14 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA Aa2 AA- 106.89 5.97 0.00 -0.11 4.36
IntSPaolo 2.19 2.19 0.00 0.00 0.20 9.9 14.84 Tesla Mtrs 197.78 200.77 -2.99 -1.49 -22.21 -10.1 -12.95 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 126.46 3.87 -0.04 -0.01 2.27
MitUFJFin 567.10 575.50 -8.40 -1.46 48.40 9.3 11.83 Bhartiartl 318.90 310.85 8.05 2.59 -25.05 -7.3 -12.39 SouthTrust Bank 12/27 6.57 A Aa3 A+ 128.10 3.55 0.00 -0.03 1.95
Murata Mfg 13605.00 14000.00 -395.00 -2.82 1110.00 8.9 9.10 MylanNV 39.97 41.92 -1.95 -4.65 -3.06 -7.1 -14.10 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 126.08 4.03 0.00 -0.09 -
SumitomoF 3669.00 3697.00 -28.00 -0.76 299.00 8.9 16.34 ValeantPh 37.34 38.09 -0.75 -1.97 -2.80 -7.0 34.66 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- 117.04 4.15 0.00 0.28 -
BkofComm 6.27 6.09 0.18 2.96 0.51 8.9 18.53 SingTel 3.95 3.87 0.08 2.07 -0.27 -6.4 -3.19 Brazil 01/18 8.00 BB Ba2 BB 104.93 4.18 0.04 -0.03 3.39
Russia 07/18 11.00 BB+ Ba1 BBB- 116.46 2.03 0.00 -0.04 1.24 Euro
Mizuho Fin 182.10 181.30 0.80 0.44 14.20 8.5 12.14 VF Cp 60.03 61.56 -1.53 -2.49 -3.96 -6.2 0.05 Credit Agricole S.A. 03/27 2.63 BBB Baa2 A- 106.08 1.98 -0.01 -0.23 0.37
Charter Communications 271.79 268.82 2.97 1.10 20.86 8.3 15.27 Salesforce 75.10 75.91 -0.81 -1.07 -4.93 -6.2 -6.71 Peru 03/19 7.13 BBB+ A3 BBB+ 128.75 1.95 0.00 0.00 1.16
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 A2 A- 122.21 1.91 0.00 0.00 0.30
BOC Hold 28.15 27.60 0.55 1.99 2.15 8.3 11.05 RioTinto 2327.00 2327.00 0.00 0.00 -140.50 -5.7 -5.71 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 124.55 1.02 -0.01 -0.01 -
Unicred 2.35 2.35 0.00 0.00 0.17 8.0 19.57 Ch Coms Cons 8.50 8.41 0.09 1.07 -0.48 -5.3 -1.85 Colombia 07/21 4.38 BBB Baa2 BBB 107.93 2.64 -0.01 -0.05 1.44
Brazil 01/22 12.50 BB Ba2 BB 109.83 10.04 0.01 -0.61 8.84 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 122.06 1.01 -0.02 -0.02 -
Nordea Bk 85.60 85.60 0.00 0.00 6.30 7.9 11.81 PTT Explor 333.00 335.00 -2.00 -0.60 -18.00 -5.1 0.30
Poland 03/22 5.00 BBB+ A2 A- 117.38 2.80 0.00 0.00 1.60 Yen
MitsuiFud 2271.00 2249.50 21.50 0.96 163.00 7.7 7.58 Hngzh HikVDT 24.68 24.31 0.37 1.52 -1.31 -5.0 -3.22
Turkey 09/22 6.25 - Baa3 BBB- 110.32 4.34 -0.01 0.03 3.14 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Hitachi 501.30 496.20 5.10 1.03 35.30 7.6 9.98 Alexion 123.67 125.63 -1.96 -1.56 -5.96 -4.6 -7.44
SandsCh 33.00 32.25 0.75 2.33 2.30 7.5 11.49 BrisMySq 56.35 56.76 -0.41 -0.72 -2.42 -4.1 -24.92 Turkey 10/26 4.88 - Baa3 BBB- 102.33 4.64 0.00 0.11 3.03 £ Sterling
AXA 19.33 19.30 0.03 0.13 1.33 7.4 9.49 Wesfarmers 42.60 42.40 0.20 0.47 -1.73 -3.9 0.05 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Denso 4315.00 4308.00 7.00 0.16 295.00 7.3 9.50 CSL 104.92 104.93 -0.01 -0.01 -4.13 -3.8 -8.57 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
Deut Bank 13.32 13.32 0.00 0.00 0.91 7.3 6.73 Citic Ltd 12.10 11.98 0.12 1.00 -0.46 -3.7 3.07 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.70 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 0.86 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- 124.52 2.70 -0.02 -0.12 1.09
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
Sep 05 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Sep 02 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 0.25-0.50 0.00-0.25 Index change change change 1 month 1 year VIX 11.98 -1.50 13.48 32.09 11.02 Sep 05 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.50 3.50 Markit IBoxx VXD 11.65 -1.20 12.85 32.44 10.30 Tr 4pc '16 100.00 4.00 0.00 0.00 1900.00 733.33 102.23 100.00 0.35
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 186.96 0.15 -0.03 7.89 -0.52 9.61 VXN 14.32 -1.07 15.39 35.40 13.20 Tr 1.75pc '17 100.63 0.07 -12.50 -30.00 -46.15 -87.04 101.74 100.63 0.29
Euro Repo 0.00 10-09-2014 0.05 0.05 0.05 Corporates( £) 341.80 -0.47 -0.71 15.80 3.22 16.91 VDAX - - - - - Tr 5pc '18 107.35 0.10 -16.67 0.00 66.67 -85.92 110.85 107.34 0.35
UK Repo 0.25 05-03-2009 0.25 0.50 0.50 Corporates($) 271.79 -0.02 -0.02 8.95 -0.02 8.95 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.12 0.05 -28.57 -16.67 150.00 -94.90 112.71 110.85 0.36
Japan O'night Call 0.00-0.00 05-10-2010 0.00 0.00-0.10 0.00-0.10 Corporates(€) 224.07 -0.09 -0.11 6.05 0.43 6.66 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 116.24 0.10 -16.67 11.11 233.33 -91.80 117.12 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 238.42 -0.13 -0.34 5.82 -0.20 7.83 Tr 1.5pc '21 105.48 0.24 -7.69 14.29 26.32 -83.33 106.04 99.91 0.32
Gilts( £) 333.82 -0.75 -0.99 16.37 2.90 16.24 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 120.40 0.26 -10.34 13.04 30.00 -83.01 121.31 114.48 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 263.28 0.56 0.56 10.47 3.45 6.97 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 136.66 0.58 -4.92 16.00 3.57 -67.96 138.11 126.02 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 337.45 -0.46 -0.69 14.41 2.88 15.15 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 137.00 0.80 -3.61 8.11 -1.23 -61.17 138.26 121.91 0.31
Sep 05 (Libor: Sep 02) night Day Week Month month month month year Overall ($) 239.80 0.01 0.01 6.57 0.01 6.57 Australia 10/18 3.25 103.64 1.50 0.00 0.06 0.01 -0.29 Tr 4.25pc '32 146.42 1.05 -2.78 8.25 -7.08 -55.13 148.92 124.00 0.35
US$ Libor 0.42044 0.004 0.001 0.003 0.52572 0.83511 1.24706 1.55944 Overall( £) 331.88 -0.67 -0.90 15.80 2.90 15.93 11/27 2.75 107.50 2.00 0.00 0.07 -0.06 0.00 Tr 4.25pc '36 153.08 1.19 -2.46 7.21 -8.46 -51.82 155.77 125.16 0.30
Euro Libor -0.40000 0.001 0.001 0.000 -0.37400 -0.32586 -0.20500 -0.07543 Overall(€) 232.72 -0.11 -0.25 5.45 0.00 6.90 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 171.29 1.29 -2.27 6.61 -10.42 -49.01 174.65 134.26 0.27
£ Libor 0.22813 0.000 -0.001 -0.001 0.27256 0.38438 0.51813 0.73619 Treasuries ($) 228.79 0.03 0.03 5.53 0.03 5.53 10/26 0.75 106.02 0.15 -0.01 0.02 0.04 0.00 Tr 3.75pc '52 173.29 1.22 -3.17 6.09 -10.95 -51.00 177.28 125.74 0.24
Swiss Fr Libor 0.000 -0.81080 -0.73600 -0.65000 -0.48800 FTSE Belgium 06/18 0.75 99.98 0.76 0.00 -0.02 -0.06 0.65 Tr 4pc '60 197.09 1.15 -3.36 6.48 -11.54 -53.06 201.27 136.28 0.23
Yen Libor 0.001 -0.07814 -0.03007 -0.00071 0.09314 Sterling Corporate (£) 122.89 0.38 - - 0.19 10.61 06/26 1.00 107.92 0.18 -0.02 0.00 0.02 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.37300 -0.30100 -0.19300 -0.05200 Euro Corporate (€) 110.94 0.07 - - -0.23 4.03 Canada 11/18 0.50 99.78 0.60 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.25000 0.37000 0.52500 Euro Emerging Mkts (€) 892.67 3.51 - - 5.63 11.59 06/27 1.00 98.37 1.16 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.46000
-0.42500
0.65000
-0.33500
0.91000
-0.23500
Eurozone Govt Bond 118.33 0.12 - - -0.53 4.83 Denmark 11/18 0.25 101.87 -0.59 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 1.75 115.89 0.02 -0.03 -0.02 -0.06 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 99.99 1.01 0.00 0.02 0.07 -0.07
Fixed Coupon Sep 05 chg % Return 1 month 1 year Yield
Sep 05 term notice month month month year Markit iTraxx 04/26 0.50 103.96 0.09 0.00 0.02 0.03 0.00
1 Up to 5 Years 98.26 0.04 2430.74 -0.07 2.91 0.15
Euro -0.45 -0.35 -0.45 -0.35 -0.50 -0.35 -0.41 -0.26 -0.31 -0.16 -0.12 0.03 Crossover 5Y 369.26 -12.07 35.21 40.34 390.04 288.69 France 05/19 1.00 104.24 -0.55 0.00 0.00 0.00 0.00
2 5 - 10 Years 189.64 0.19 3531.02 0.08 9.01 0.46
Sterling 0.18 0.28 0.20 0.30 0.32 0.42 0.45 0.60 0.61 0.76 Europe 5Y 85.00 -1.98 7.21 7.01 90.43 67.59 11/20 0.25 102.95 -0.44 0.00 0.00 0.00 0.00
3 10 - 15 Years 229.98 0.31 4356.91 0.46 14.10 0.88
Swiss Franc - - - - - - - - - - - - Japan 5Y 70.05 -2.51 2.21 -0.87 93.03 64.22 05/26 0.50 103.09 0.18 -0.02 -0.02 0.02 0.00
4 5 - 15 Years 199.76 0.23 3738.15 0.20 10.66 0.64
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 111.86 -3.89 10.86 12.50 121.66 80.36 05/45 3.25 155.27 1.02 -0.01 0.02 0.08 0.00
5 Over 15 Years 374.83 0.68 5557.52 2.93 27.18 1.22
US Dollar 0.40 0.50 0.40 0.50 0.45 0.55 0.80 0.90 1.20 1.30 1.50 1.60 Germany 04/19 0.50 103.02 -0.65 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 193.36 0.37 3714.55 1.29 14.61 1.05
Japanese Yen -0.20 0.00 -0.25 -0.05 -0.55 -0.25 -0.40 -0.10 -0.20 0.10 -0.15 0.15 10/20 0.25 103.56 -0.60 0.00 0.00 0.00 0.00
Emerging Markets 5Y 242.52 -3.74 0.22 -4.49 313.33 236.63 02/26 0.50 105.81 -0.11 0.00 0.00 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 389.89 -9.57 -1.50 -2.44 476.69 378.81 08/46 2.50 154.65 0.52 -0.01 0.04 0.08 0.00
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Sep 05 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 72.41 -1.46 0.44 1.71 91.05 69.58 Greece 04/19 4.75 91.29 8.60 0.02 0.23 -0.47 0.00
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 1 Up to 5 Years 313.77 -0.04 -0.06 1.08 2428.93 -0.06 2.91
02/27 3.00 69.67 8.08 0.01 0.07 -0.15 0.00 2 Over 5 years 725.55 0.75 7.48 22.79 5378.49 7.48 23.59
Ireland 10/17 5.50 106.60 -0.41 0.00 0.00 0.00 0.00 3 5-15 years 481.25 0.19 2.00 10.45 3689.81 2.00 11.73
05/26 1.00 105.54 0.42 -0.05 -0.02 0.02 0.00 4 Over 15 years 935.78 0.94 9.41 27.44 6797.05 9.41 28.02
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 04/19 0.10 100.27 -0.01 0.00 0.00 0.00 0.00 5 All stocks 655.26 0.69 6.84 20.30 4925.76 6.84 21.27
06/21 0.45 100.87 0.27 -0.02 0.04 0.02 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/26 1.25 100.45 1.21 -0.03 0.01 0.02 0.00 Yield Indices Sep 05 Sep 02 Yr ago Sep 05 Sep 02 Yr ago
Crude Oil† Sep 44.87 0.56 Corn♦ Sep 316.25 0.00 Sep 02 Sep 02 Prev return stock Market stocks
03/47 2.70 110.77 2.22 -0.02 0.07 0.15 0.00 5 Yrs 0.19 0.22 1.17 20 Yrs 1.30 1.33 2.37
Brent Crude Oil‡ 47.60 0.83 Wheat♦ Sep 373.25 0.00 Can 4.25%' 21 124.12 -0.309 -0.364 -0.25 5.18 76841.02 7
Japan 09/18 0.10 100.59 -0.19 0.00 0.00 0.00 0.00 10 Yrs 0.73 0.76 1.82 45 Yrs 1.16 1.20 2.35
RBOB Gasoline† Sep 1.31 0.02 Soybeans♦ Sep 966.00 0.00 Fr 2.25%' 20 113.50 -1.125 -1.138 -0.08 20.31 211524.51 14
09/21 0.05 100.94 -0.14 0.00 0.00 0.00 0.00 15 Yrs 1.13 1.16 2.20
Heating Oil† Sep 1.41 0.02 Soybeans Meal♦ Sep 314.50 0.00 Swe 0.25%' 22 113.72 -1.693 -1.693 -0.16 29.20 226568.43 7
06/26 0.10 101.18 -0.02 0.00 0.00 0.00 0.00
Natural Gas† Sep 2.76 -0.03 Cocoa (ICE Liffe)X Sep 2285.00 -6.00 UK 2.5%' 20 370.39 -2.374 -2.474 -0.38 6.58 635317.28 27
06/46 0.30 94.20 0.53 0.02 0.14 0.10 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Sep 2918.00 0.00 UK 2.5%' 24 369.82 -2.074 -2.184 -0.83 6.82 635317.28 27
Netherlands 01/19 1.25 104.45 -0.62 0.00 0.00 0.00 0.00 Real yield Sep 05 Dur yrs Previous Yr ago Sep 05 Dur yrs Previous Yr ago
Uranium† Sep 25.65 0.40 Coffee(Robusta)X Sep 1852.00 15.00 UK 2%' 35 273.66 -1.803 -1.874 -0.95 9.08 635317.28 27
07/25 0.25 102.69 -0.05 0.00 0.00 0.00 0.00 Up to 5 yrs -2.11 2.66 -2.12 -0.88 -2.63 2.66 -2.65 -1.56
Carbon Emissions‡ - - Coffee (Arabica)♥ Sep 151.05 0.00 US 0.625%' 21 103.89 -0.171 -0.146 0.00 35.84 1205110.46 37
White SugarX 540.20 -1.80 New Zealand 03/19 5.00 107.72 1.85 0.00 0.06 0.07 -0.77 Over 5 yrs -1.77 25.19 -1.74 -0.94 -1.79 25.27 -1.76 -0.97
Diesel† - - US 3.625%' 28 137.57 0.326 -0.146 -0.10 16.78 1205110.46 37
Sugar 11♥ 20.24 0.00 04/27 4.50 120.68 2.29 0.01 0.06 0.08 -1.00 5-15 yrs -1.96 9.13 -1.94 -0.86 -2.08 9.14 -2.06 -0.96
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 110.52 0.57 0.01 0.02 0.09 0.00 Over 15 yrs -1.75 30.31 -1.72 -0.95 -1.76 30.35 -1.73 -0.97
Base Metals (♠ LME 3 Months) Cotton♥ Oct 67.10 0.00 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
02/26 1.50 103.58 1.10 0.01 -0.01 0.08 0.00 All stocks -1.77 23.42 -1.74 -0.94 -1.80 23.53 -1.77 -0.98
Aluminium 1583.00 -11.00 Orange Juice♥ 186.00 0.00 amount.
Aluminium Alloy 1595.00 20.00 Palm Oil♣ - - Portugal 06/19 4.75 110.28 0.96 0.00 0.00 0.12 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4621.00 6.00 Live Cattle♣ Oct 101.53 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 98.60 3.04 0.01 0.01 0.22 0.00
Spain 01/19 0.25 100.77 -0.07 0.00 0.00 0.00 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Lead 1963.00 19.00 Feeder Cattle♣ Sep 135.00 -2.35
Nickel 10000.00 -35.00 Lean Hogs♣ Oct 60.60 0.00 Spread Spread Spread Spread 10/26 1.30 102.15 1.07 -0.06 0.05 -0.01 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 19300.00 0.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.93 1.04 0.00 0.02 0.08 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 2365.00 1.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 122.39 -0.07 0.00 0.00 0.00 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Sep 02 Month Year Australia 2.00 2.11 0.39 Italy 1.21 1.32 -0.40 Switzerland 05/19 3.00 110.70 -0.92 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1326.35 1.65 S&P GSCI Spt 347.18 4.22 -4.85 Austria 0.15 0.26 -1.46 Japan -0.02 0.09 -1.63 05/26 1.25 117.01 -0.46 0.00 0.00 0.00 0.00
Silver (US cents) 1946.00 71.00 DJ UBS Spot 82.99 0.11 -6.48 Belgium 0.18 0.29 -1.42 Netherlands -0.05 0.06 -1.66 United Kingdom 07/19 1.75 104.64 0.13 0.00 0.00 0.06 0.00 Data provided by Morningstar | www.morningstar.co.uk
Platinum 1065.00 13.00 R/J CRB TR 180.89 1.54 -8.31 Canada 1.16 1.27 -0.44 Norway 1.10 1.21 -0.51 07/22 0.50 100.74 0.37 -0.01 0.00 0.00 0.00
Palladium 676.00 6.00 M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark 0.02 0.13 -1.59 Portugal 3.04 3.15 1.44 07/26 1.50 107.42 0.72 -0.01 0.00 0.00 0.00
Bulk Commodities UBS Bberg CMCI TR 12.95 1.42 -4.62 Finland 0.09 0.20 -1.52 Spain 1.07 1.19 -0.53 12/46 4.25 173.00 1.32 -0.01 0.00 -0.10 0.00
Iron Ore (Platts) 59.50 -0.65 LEBA EUA Carbon 5.83 0.00 -22.37 France 0.18 0.29 -1.43 Switzerland -0.46 -0.34 -2.06 United States 08/18 0.75 99.91 0.79 0.00 0.00 0.00 0.00
Iron Ore (The Steel Index) 58.80 -0.20 LEBA CER Carbon 0.38 -5.00 -25.49 Germany -0.11 0.00 -1.72 United Kingdom 0.72 0.83 -0.89 08/21 1.13 99.66 1.20 0.00 0.00 0.00 0.00
GlobalCOAL RB Index 66.60 0.60 LEBA UK Power 2411.00 47.46 -29.67 Greece 8.08 8.19 6.48 United States 1.61 1.72 0.00 08/26 1.50 99.03 1.61 0.00 0.00 0.00 0.00
Baltic Dry Index 724.00 4.00 Ireland 0.42 0.53 -1.19 08/46 2.25 99.36 2.28 0.00 0.00 0.00 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 6 September 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

Saudi Arabia Equity Fund SR 11.13 - 0.09 0.00 Invesco Emerging Europe Equity Fund A $ 8.75 - 0.19 0.00 Eq Market Neutral Plus B Acc 954.58 - 1.02 - Low Volatility Gb.Eq.Fd.Yen ¥ 9022.00 - 149.00 0.00

ACPI Global UCITS Funds Plc (IRL) Atlantas Sicav (LUX) Frontier Capital (Bermuda) Limited Invesco Emerging Local Currencies Debt A Inc $ 7.13 - 0.05 6.00 High Yield Global Bond A GBP Inc 534.00 - 0.46 3.80
www.acpishard.com Regulated Other International
Regulated Ennismore Smaller Cos Plc (IRL) Invesco Emerging Mkt Quant.Eq. A $ 10.62 - 0.16 0.00 High Yield Global Bond B GBP Inc 1113.61 - 1.02 4.36 MMIP Investment Management Limited (GSY)
American Dynamic $ 3689.31 - 15.98 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 -
5 Kensington Church St, London W8 4LD 020 7368 4220 Regulated
ACPI Emerging Mkts FI UCITS Fund USD A $ 122.10 - 0.43 0.00
FCA Recognised Invesco Energy A $ 18.10 - 0.30 - Investment Grade Global Bd A GBP Inc 588.13 - -0.21 2.05 Multi-Manager Investment Programmes PCC Limited
American One $ 3450.55 - -20.61 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
ACPI Global Credit UCITS Funds USD A $ 14.86 - 0.00 0.00 Ennismore European Smlr Cos NAV £ 112.76 - -0.21 0.00 UK Equity Fd Cl A Series 01 £ 2316.48 2343.11 53.41 0.00
Bond Global € 1437.40 - 15.44 0.00 Invesco Euro Corporate Bond Fund (A) € 17.82 - -0.01 0.00 Kames Global Equity Income B GBP Acc 1376.41 - 4.09 -
Crèdit Andorrà Asset Management (LUX)
ACPI Global Fixed Income UCITS Fund USD A $ 159.30 - -0.11 0.00 www.creditandorra.com Ennismore European Smlr Cos NAV € 134.46 - 0.22 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1517.27 - 21.29 0.00
Eurocroissance € 902.68 - 6.47 - FCA Recognised GYS Investment Management Ltd (GSY) Invesco Euro Inflation Linked Bond A € 16.01 - 0.00 - Kames Global Equity Income B GBP Inc 1277.52 - 3.79 -
Q ACPI India Fixed Income UCITS Fund USD A $ 10.61 - -0.01 0.00 Regulated Diversified Absolute Return Stlg Cell AF2 £ 1530.22 - 20.67 0.00
Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 - Invesco Euro Reserve A € 322.08 - -0.01 0.00 Strategic Global Bond A GBP Inc 1123.55 - -3.44 0.56
Far East $ 729.05 - 5.51 0.00
Ennismore European Smlr Cos Hedge Fd Taurus Emerging Fund Ltd $ 179.41 183.07 -3.58 -
ACPI India Fixed Income UCITS Fund USD A3 $ 90.72 - -0.06 0.00 Global Equity Fund A Lead Series £ 1189.14 1193.30 61.34 -
Crediinvest SICAV Money Market Usd A $ 10.08 - 0.00 - Other International Funds Invesco Euro Bond A € 7.49 - 0.00 - Strategic Global Bond B GBP Inc 637.82 - -1.91 1.03
ACPI International Bond UCITS Fund USD A $ 18.67 - 0.00 0.00
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Crediinvest SICAV Fixed Income Eur € 10.91 - 0.00 0.00 NAV € 477.41 - -1.78 0.00 Invesco European Growth Equity A € 24.30 - 0.32 0.00
Generali Worldwide
Regulated Marwyn Asset Management Limited (CYM)
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
Crediinvest SICAV Fixed Income Usd $ 10.78 - 0.00 0.00 Invesco Global Absolute Return Fund A Class € 11.01 - 0.02 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) Regulated
Global Liquidity USD $ 1.00 - 0.00 0.61 International Insurances PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
ACPI Select UCITS Funds PLC (IRL)
Regulated Crediinvest SICAV Spanish Value € 261.26 - 1.66 - Invesco Global Bond A Inc $ 5.59 - 0.01 0.59 Other International Funds Marwyn Value Investors £ 418.32 - 9.05 0.00
Global Multi-Strategy Managed $ 4.87 5.25 -0.01 0.00
ACPI Balanced UCITS Fund USD Retail $ 14.65 - 0.02 0.00 Lloydstrust Gilt £ 13.6400 - -0.0500 1.97
Crediinvest SICAV International Value € 241.37 - 3.13 0.00 Invesco Global Conservative Fund 90 (EUR) A € 11.66 - 0.02 0.00
Barclays Investment Funds (CI) Ltd (JER) UK Multi-Strategy Managed £ 5.10 5.50 -0.02 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Lloyds Investment Funds Limited
ACPI Balanced UCITS Fund EUR Retail € 10.93 - 0.01 0.00
Crediinvest SICAV Big Cap Value € 15.87 - 0.24 -
Meridian Fund Managers Ltd
FCA Recognised EU Multi-Strategy Managed € 2.95 3.18 -0.01 0.00 Invesco Global Equity Income Fund A $ 59.66 - 0.67 0.00
Euro High Income € 1.6870 - 0.0000 2.63 Other International Funds
ACPI Balanced UCITS Fund GBP Retail £ 11.10 - 0.01 0.00 Bond Funds
Crediinvest SICAV US American Value $ 18.76 - 0.11 0.00 EnTrustPermal Ltd. Global Bond USD $ 3.60 3.88 -0.01 0.00 Invesco Global Inc Real Estate Sec A dist $ 9.72 - 0.05 2.20 Global Gold & Resources Fund $ 351.42 - 127.42 -
European £ 8.5590 - 0.0920 1.03
Sterling Bond F £ 0.50 - -0.01 - www.entrustpermal.com
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - -
Crediinvest SICAV Sustainability € 15.71 - 0.05 - Other International Funds Invesco Global Inv Grd Corp Bond A Dist $ 12.47 - -0.02 2.95 Global Energy & Resources Fund $ 40.11 - 8.16 -
High Income £ 0.9315xd - -0.0013 4.49
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Offshore Fund Class A US $ Shares
Genesis Asset Managers LLP Invesco Global Leisure A $ 39.50 - 0.21 0.00
BlackRock (JER) Investment Holdings N.V. $ 4992.53 - 101.58 0.00 International £ 4.8050 - 0.0120 0.51
Other International Funds
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Regulated DAVIS Funds SICAV (LUX)
Invesco Global Smaller Comp Eq Fd A $ 60.63 - 0.52 0.00 Mirabaud Asset Management (LUX)
Regulated Macro Holdings Ltd $ 4141.38 - -15.30 0.00 Emerging Mkts NAV £ 6.59 - 0.06 0.00 North American £ 18.6900 - -0.0300 0.00
BlackRock UK Property £ 40.95 - -0.15 3.20 www.mirabaud.com, marketing@mirabaud.com
ACPI Horizon UCITS Fund $ 13.31 - 0.06 0.00
Davis Value A $ 42.19 - 0.30 0.00 Invesco Global Structured Equity A $ 46.37 - 0.34 1.15 Regulated
Fixed Income Holdings N.V. $ 336.20 - 6.33 - Sterling Bond £ 1.6200 - -0.0030 3.06
Blackrock UK Long Lease £ 1075.79 - -1.26 - Mir. - Conv. Bds Eur A EUR € 134.03 - 0.48 0.00
Davis Global A $ 30.96 - 0.37 0.00 HPB Assurance Ltd Invesco Global Total Ret.(EUR) Bond Fund A € 13.62 - 0.00 0.00
EnTrustPermal Absolute Return Fund $ 153.10 - -0.04 0.00 UK £ 7.3290 - 0.0820 1.24
BLK Intl Gold & General $ 7.11 7.50 0.27 0.00 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Mir. - Conv. Bds Glb A USD $ 113.61 - 0.18 0.00
International Insurances Invesco Gold & Precious Metals A $ 6.67 - 0.27 0.00 Lloyds Gilt Fund Limited
Mir. - Eq Asia ex Jap A $ 187.80 - 2.76 0.00
Holiday Property Bond Ser 1 £ 0.54 - 0.01 0.00 Lloyds Gilt Fund Quarterly Share £ 1.4220 - -0.0050 1.48
Invesco Greater China Equity A $ 49.62 - 0.71 0.00
BLI - Banque de Luxembourg Investments S.A. Equinox Fund Mgmt (Guernsey) Limited (GSY)
Regulated Mir.- EqEurope ExUK Sm&Mid £ 124.85 - 0.51 -
FCA Recognised Holiday Property Bond Ser 2 £ 0.64 - 0.01 0.00 Monthly Share £ 1.3660xd - -0.0040 1.48
Invesco India Equity A $ 59.34 - 0.33 0.00
Equinox Russian Opportunities Fund Limited $ 116.66 - 5.99 0.00 Lloyds Money Fund Limited
BL-Equities Europe B € 6256.35 - 99.10 0.00 Mir. - Eq Glb Emrg Mkt A USD $ 99.62 - 1.16 0.00
Algebris Investments (IRL) Invesco Japanese Equity Adv Fd A ¥ 3451.00 - 4.00 -
Regulated Sterling Class £ 52.6530 - -0.0010 0.00
BL-Equities America B $ 5920.57 - 24.97 0.00 Mir. - Eq Global Focus A USD $ 96.79 - 0.17 0.00
Haussmann Invesco Japanese Value Eq Fd A ¥ 1115.00 - 3.00 -
Algebris Financial Credit Fund - Class I EUR € 139.32 - 0.09 0.00 Dodge & Cox Worldwide Funds (IRL) Lloyds Multi Strategy Fund Limited
Euronova Asset Management UK LLP (CYM) Other International Funds
BL-Equities Japan B ¥ 14950.00 - 27.00 - 6 Duke Street,St.James,London SW1Y 6BN Regulated Mir. - EqPanEuropeSm&Mid € 118.02 - 1.03 0.00
Algebris Financial Income Fund - Class I EUR € 117.16 - 0.97 0.00 Invesco Latin American Equity A $ 7.00 - 0.14 0.00 Conservative Strategy £ 1.1980 - 0.0020 1.67
www.dodgeandcox.worldwide.com 020 3713 7664 Haussmann Cls A $ 2592.50 - 6.98 0.00
BL-Emerging Markets B € 165.74 - 1.74 0.00 FCA Recognised Smaller Cos Cls One Shares € 36.15 - 0.11 0.00 Mir. - Eq Spain A € 25.93 - 0.26 0.00
Algebris Financial Equity Fund - Class B EUR € 95.78 - 1.06 0.00 Invesco Nippon Small/Mid Cap Equity A ¥ 1064.00 - 1.00 - Growth Strategy £ 1.6410 - 0.0090 1.22
Dodge & Cox Worldwide Funds plc - Global Bond Fund Haussmann Cls C € 2247.31 - 4.39 0.00
BL-Global Equities B € 773.74 - 6.66 0.00 Smaller Cos Cls Two Shares € 25.12 - 0.06 0.00 Mir. - Eq Swiss Sm/Mid A SFr 363.88 - 3.94 0.00
Algebris Asset Allocation Fund - Class B EUR € 98.56 - 0.12 0.00 EUR Accumulating Class € 12.40 - 0.06 0.00 Invesco Pan European Equity A EUR Cap NAV € 17.50 - 0.30 0.00 Aggressive Strategy £ 2.0700 - 0.0180 0.00
Haussmann Cls D SFr 1183.86 - 2.10 0.00
BL-Global 30 B € 1432.96 - 2.79 0.00 Smaller Cos Cls Three Shares € 12.64 - 0.04 0.00 Mir. - Glb High Yield Bds A $ 114.30 - 0.01 -
EUR Accumulating Class (H) € 9.81 - 0.01 0.00 Invesco Pan European High Income Fd A € 14.09 - 0.05 2.68 Global USD Growth Strategy $ 1.4400 - 0.0050 0.00
BL-Global 50 B € 1725.77 - 6.31 0.00 Smaller Cos Cls Four Shares € 16.26 - 0.05 0.00 Mir. - Glb Eq High Income A USD $ 99.76 - 0.46 0.00
Dealing Daily
Amundi Funds (LUX) EUR Distributing Class € 11.52 - 0.06 4.00 Heartwood Wealth Management Limited (IRL) Invesco Pan European Small Cap Equity A € 20.72 - 0.19 -
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 BL-Global 75 B € 2349.83 - 14.44 0.00 Regulated Mir. - Glb Strat. Bd A USD $ 109.42 - -0.09 0.00
www.amundi-funds.com EUR Distributing Class (H) € 9.10 - 0.01 4.03 Invesco Pan European Structured Equity A € 17.17 - 0.23 0.00
Heartwood Caut Multi Asset B Acc 139.55 - 0.30 0.00 M & G Securities (1200)F (UK)
FCA Recognised BL-Global Flexible EUR B € 155.66 - 1.19 0.00 Mir. - US Shrt Term Credit Fd $ 102.65 - 0.02 -
GBP Distributing Class £ 11.77 - -0.01 3.59 Invesco UK Eqty Income A £ 32.87 - 0.16 0.00 PO Box 9039, Chelmsford, CM99 2XG
Bd. Euro Corporate AE Class - R - EUR € 19.50 - -0.02 0.00 www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196
GBP Distributing Class (H) £ 9.24 - 0.02 4.07 Invesco UK Investment Grade Bond A £ 1.11 - 0.00 2.30 Authorised Inv Funds
Bd. Global AU Class - R - USD $ 27.72 - -0.10 0.00
BONHOTE M&G Episode Growth A Inc 52.96 - 0.16 2.30 MW Japan Fund Plc (IRL)
Other International Funds USD Accumulating Class $ 9.98 - 0.02 0.00 Invesco US Structured Equity A $ 22.85 - 0.18 - FCA Recognised
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00
Eurobank Fund Management Company (Luxembourg) S.A. M&G Global High Yield Bond A Inc 50.52 - 0.06 3.94 MW Japan Fund PLC A $ 25.65 - 0.14 0.00
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6478.00 - 75.00 1.94 Dodge & Cox Worldwide Funds plc-Global Stock Fund Invesco US Value Eq Fd A $ 32.55 - 0.16 0.00
Eq. Emerging World AU Class - R - USD $ 90.60 - 0.96 0.00 Regulated
USD Accumulating Share Class $ 17.03 - 0.17 0.00 M&G Global High Yield Bond A Acc 122.82 - 0.14 3.92 MW Japan Fund PLC B $ 25.77 - 0.15 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9820.00 - 275.00 0.81 (LF) Absolute Return € 1.32 - 0.00 0.00 Invesco USD Reserve A $ 87.12 - 0.01 -
Eq. Greater China AU Class - R - USD $ 608.32 - 3.46 0.00
GBP Accumulating Share Class £ 21.08 - 0.18 0.00 Hermes Investment Funds Plc (IRL) M&G Managed Growth A Inc 90.07 - 0.41 0.34 MW Japan Fund PLC C $ 84.39 - 0.27 0.00
(LF) Eq Emerging Europe € 0.77 - 0.01 0.00 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Eq. Latin America AU Class - R - USD $ 390.06 - 7.60 0.00
FCA Recognised
CG Asset Management Limited (IRL) GBP Distributing Share class £ 15.26 - 0.13 0.79
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Invesco Global Asset Management Ltd (IRL)
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.83 - -0.05 0.00 Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Hermes Abs Return Credit Fund Class F Acc £ 1.17 1.17 0.00 0.00 Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
00 353 1 434 5098 EUR Accumulating Share Class € 22.93 - 0.33 0.00 M & G (Guernsey) Ltd (GSY) Morant Wright Funds (Ireland) PLC (IRL)
(LF) Eq Mena Fund € 12.98 - 0.03 0.00 FCA Recognised Regulated
FCA Recognised Hermes Abs Return Credit Fund Class R Acc € 1.98 1.98 0.00 0.00 FCA Recognised
Dodge & Cox Worldwide Funds plc-International Stock Fund Invesco Stlg Bd A QD F £ 2.72 - 0.00 3.42 The M&G Offshore Fund Range
Capital Gearing Portfolio Fund Plc £ 29337.47 29337.47 -99.66 0.56 (LF) Greek Government Bond € 19.37 - 0.00 0.00 Morant Wright Fuji Yield EUR Acc Hedged € 10.27 - 0.02 -
The Antares European Fund Limited USD Accumulating Share Class $ 14.11 - 0.14 0.00 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.94 1.94 0.01 0.00 Corporate Bond A 1422.80 1466.80 -12.98 3.83
Other International CG Portfolio Fund Plc Invesco Asian Equity A $ 7.06 - 0.08 0.00
(LF) Greek Corporate Bond € 12.66 - 0.00 0.00 Morant Wright Fuji Yield EUR Dist Hedged € 9.24 - 0.02 2.78
EUR Accumulating Share Class € 14.89 - 0.21 0.00 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.66 3.66 0.06 0.00 Global Basics X 2877.75 2966.75 6.70 0.18
AEF Ltd Usd (Est) $ 585.76 - 8.11 - Real Return Cls A £ 196.90 196.90 -3.24 1.47 Invesco ASEAN Equity A $ 98.29 - 0.40 -
(LF) FOF Dynamic Fixed Inc € 12.24 - -0.04 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 9.67 - 0.02 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Hermes Europe Ex-UK Equity Fund Class F Acc £ 1.59 1.59 0.01 -
AEF Ltd Eur (Est) € 586.83 - 8.29 0.00 Global Dividend A 137.78 143.52 0.14 2.79
Dollar Fund Cls D £ 153.10 153.10 -0.11 1.37 Invesco Bond A $ 28.54 - 0.00 1.94
USD Accumulating Share Class $ 19.53 - 0.11 0.00 (LF) FOF Real Estate € 17.68 - 0.10 0.00 Morant Wright Fuji Yield GBP Dist Hedged £ 8.89 - 0.02 7.01
Hermes Europe Ex-UK Equity Fund Class R Acc € 3.24 3.24 0.05 - Global Leaders A 3915.53 4078.68 6.50 0.90
Capital Value Fund Cls V £ 142.57 142.57 -0.50 0.24 Invesco Continental Eurp Small Cap Eqty A $ 206.29 - 1.32 0.00
GBP Accumulating Share Class £ 22.85 - 0.08 0.00 Morant Wright Fuji Yield USD Acc Hedged $ 9.51 - 0.02 0.00
Arisaig Partners Hermes European Alpha Equity Fund Class F Acc £ 1.49 1.49 0.01 - Global High Yield Bond X 993.24 1023.95 0.99 3.94
Invesco Emerging Markets Equity A $ 39.71 - 0.65 0.00
Other International Funds GBP Distributing Share Class £ 14.47 - 0.05 0.61 FIL Investment Services (UK) Limited (1200)F (UK) Morant Wright Fuji Yield USD Dist Hedged $ 9.40 - 0.02 2.73
Hermes European Alpha Equity Fund Class F Dis £ 1.43 1.43 0.01 -
Asset Management
Cedar Rock Capital Limited (IRL) 130, Tonbridge Rd, Tonbridge TN11 9DZ Global Macro Bond A 12948.17 13348.63 -43.35 2.36
Arisaig Africa Consumer Fund Limited $ 12.36 - 0.07 0.00 Invesco Emerging Markets Bond A $ 22.28 - 0.02 4.60

Asset Management Asset Management

Regulated EUR Accumulating Share Class € 22.71 - 0.22 0.00 Callfree: Private Clients 0800 414161 Morant Wright Fuji Yield YEN Acc ¥ 990.92 - 2.10 0.00
Broker Dealings: 0800 414 181 Hermes European Alpha Equity Fund Class R Acc € 3.13 3.13 0.04 0.00 North American Dividend A 191.68 199.66 0.55 2.04
Arisaig Asia Consumer Fund Limited $ 67.80 - 0.12 0.00 Cedar Rock Capital Fd Plc $ 395.22 - -6.81 0.00 Invesco Continental European Equity A € 8.12 - 0.13 1.20
OEIC Funds Morant Wright Fuji Yield B YEN Acc ¥ 875.78 - 1.88 0.00
Hermes Global Emerging Markets Fund Class F Acc £ 1.47 1.47 0.02 0.00 Optimal Income A 147.55 152.11 1.38 3.54
Arisaig Global Emerging Markets Consumer Fund $ 10.46 - 0.08 0.00 Cedar Rock Capital Fd Plc £ 473.74 - -14.32 0.00 Target 2020 A-ACC-GBP £ 0.62 - 0.00 0.47 Invesco Gilt A £ 17.18 - -0.03 -
Morant Wright Fuji Yield YEN Dist ¥ 955.91 - 2.02 2.75
Hermes Global Emerging Markets Fund Class R Acc € 3.23 3.23 0.05 0.00 Recovery A 10677.86 11122.77 86.19 0.76
Arisaig Global Emerging Markets Consumer UCITS € 12.12 - 0.13 0.00 Cedar Rock Capital Fd Plc € 369.41 - -4.98 0.00 Target 2025 A-ACC-GBP £ 1.46 - 0.01 0.29 Invesco Global Small Cap Equity A NAV $ 125.57 - 1.20 0.00
Morant Wright Sakura Fund Sterling Acc Hedged £ 11.81 - 0.04 0.00
Hermes Global Equity Fund Class F Acc £ 1.81 1.81 0.01 0.00 Strategic Corproate Bond A 141.41 147.30 -0.05 2.42
Arisaig Global Emerging Markets Consumer UCITS STG £ 12.88 - 0.09 0.00 Target 2030 A-ACC-GBP £ 1.59 - 0.01 0.36 Invesco Global High Income A NAV $ 12.47 - 0.03 6.17
Morant Wright Sakura Fund Euro Acc Hedged € 11.90 - 0.04 0.00
Hermes Global Equity Fund Class R Acc € 4.13 4.13 0.05 0.00 UK Inf Lkd Corp Bd A Inc 108.60 111.96 0.08 1.10
Arisaig Latin America Consumer Fund $ 24.64 - 0.45 0.00 Charles Schwab Worldwide Funds Plc (IRL) Institutional OEIC Funds Invesco Gbl R/Est Secs A GBP F F £ 9.63 - 0.03 0.79
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1233.71 - 4.21 0.00
Regulated Dragon Capital Group Hermes Global ESG Equity Fund Class F Acc £ 1.37 1.37 0.01 0.00
Europe (ex-UK) Fund ACC-GBP £ 4.41 - 0.03 1.31 UK Select A 1521.80 1585.21 16.93 1.10
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Invesco Global Health Care A $ 119.03 - 0.45 0.00
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Morant Wright Sakura Fund Dollar Acc Hedged $ 11.85 - 0.04 0.00
Fund information, dealing and administration: funds@dragoncapital.com Hermes Global High Yield Credit Fund Class F Acc £ 1.31 1.31 -0.01 0.00
Reduced Duration UK Corp Bond Gross £ 11.23 - 0.00 3.30
Artisan Partners Global Funds PLC (IRL) Other International Funds Invesco Global Select Equity A $ 12.96 - 0.15 0.07
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.71 - 0.04 0.00
Vietnam Property Fund (VPF) NAV $ 0.80 - -0.11 0.00 Reduced Duration UK Corp Bond Inc £ 10.11 - 0.00 3.30 Hermes Global High Yield Credit Fund Class R Acc € 2.97 2.97 0.00 0.00 MFS Investment Funds (LUX)
Tel: 44 (0) 207 766 7130 Chartered Asset Management Pte Ltd Invesco Jap Eqty Core A $ 1.85 - 0.02 - FCA Recognised
FCA Recognised Other International Funds Reduced Dur UK Corp Bond Gross Inc £ 10.12 - 0.00 3.30 Hermes Global Small Cap Fund Class F Acc £ 1.19 1.19 0.01 0.00
Artisan Partners Global Funds plc Invesco Japanese Equity A $ 19.17 - 0.12 - Blend.Research Gb.Eq.Fd. € 105.77 - 1.09 0.00
CAM-GTF Limited $ 322728.55 322728.55 -5875.86 0.00
Artisan Global Equity Fund Class I USD Acc $ 14.83 - 0.05 0.00 DSM Capital Partners Funds (LUX) UK Gilt Fund Inc £ 1.45 - 0.00 1.77 Hermes Global Small Cap Fund Class R Acc € 2.03 2.03 0.03 0.00
Blend.Research Gb.Eq.Fd. £ 119.18 - 0.82 0.00
www.dsmsicav.com Invesco Korean Equity A $ 29.11 - 0.52 0.00
CAM GTi Limited $ 791.62 - 38.82 -
Artisan Global Opportunities I USD Acc $ 13.42 - 0.05 0.00 Regulated UK Long Corporate Bond - Gross Inc £ 12.84 - -0.03 3.51 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.02 1.02 0.00 0.00
Invesco PRC Equity A $ 55.46 - 1.00 0.00 Blend.Research Gb.Eq.Fd. $ 104.23 - 0.80 0.00
Raffles-Asia Investment Company $ 1.64 1.64 0.04 5.24 Global Growth I2 Acc € 140.86 - 0.99 0.00
Artisan Global Value Fund Class I USD Acc $ 16.91 - 0.03 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.09 1.09 0.00 0.00
Invesco Pacific Equity A $ 51.13 - 0.52 0.07 Blend.Research U.S.Core Eq.Fd. € 108.05 - 0.67 -
Global Growth I1 Eur € 105.27 - 0.73 0.00
Findlay Park Funds Plc (IRL) Hermes US All Cap Equity Class F Stg £ Acc £ 1.22 1.22 0.00 0.00 Morgan Stanley Investment Funds (LUX)
Artisan US Value Equity Fund Class I USD Acc $ 12.20 - -0.02 0.00 Blend.Research U.S.Core Eq.Fd. £ 116.02 - 0.31 - 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Invesco Global Technology A $ 15.94 - 0.08 0.00
DSM US Large Cap Growth $ 103.19 - 0.32 - FCA Recognised www.morganstanleyinvestmentfunds.com
Artisan Global Opportunities Class I EUR Acc € 18.01 - 0.00 0.00 Hermes US All Cap Equity Class R € Acc € 2.07 2.07 0.02 0.00
Invesco UK Eqty A £ 8.18 - 0.08 1.46 Blend.Research U.S.Core Eq.Fd. ¥ 9366.00 - 117.00 0.00 FCA Recognised
American Fund USD Class $ 86.89 - 0.22 -
Hermes US SMID Equity Fund Class F Acc £ 2.07 2.07 0.01 0.00 US Advantage A F $ 61.57 - 0.40 -
Blend.Research U.S.Core Eq.Fd. $ 106.58 - 0.37 -
Edinburgh Partners Limited (IRL) American Fund GBP Hedged £ 47.13 - 0.11 0.00
Ashmore Sicav (LUX) 27-31 Melville Street, Edinburgh EH3 7JF Hermes US SMID Equity Fund Class R Acc € 3.85 3.85 0.05 0.00
Em.Mk.Eq.Fund Euro € 119.93 - 1.83 0.00 Asian Equity A F $ 44.90 - 0.59 0.00
2 rue Albert Borschette L-1246 Luxembourg Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 American Fund GBP Unhedged £ 65.42 - -0.56 0.00
FCA Recognised Cheyne Capital Management (UK) LLP (IRL) FCA Recognised Asian Property A F $ 19.05 - 0.10 0.00
Em.Mk.Eq.Fund Sterling £ 118.26 - 1.41 0.00
Regulated
Ashmore SICAV Emerging Market Debt Fund $ 101.50 - 0.30 8.00 Edinburgh Partners Opportunities Fund PLC Latin American Fund USD Class $ 14.62 - 0.02 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL) Diversified Alpha Plus A F € 27.56 27.56 -0.08 0.00
Cheyne Convertibles Absolute Return Fund € 1358.26 - 1.04 0.00 www.invil.mu Em.Mk.Eq.Fd.US Dollar $ 102.25 - 1.29 0.00
Emerging Opportunities I USD $ $ 1.19 - 0.00 0.87
Ashmore SICAV Emerging Market Frontier Equity Fund $ 150.48 - 0.11 1.11 Latin American Fund GBP Unhedged £ 11.16 - -0.11 0.00
Other International Funds Emerg Europ, Mid-East & Africa Eq A F € 70.05 - 1.10 0.00
Cheyne Global Credit Fund € 122.71 - -0.02 0.00 Gb.Conc.Eq.Fd.Euro € 299.97 - 3.58 0.00
European Opportunities I EUR € 2.32 - 0.04 1.61 GAM
Ashmore SICAV Emerging Market Total Return Fund $ 87.35 - 0.37 6.26 NAV £ 9.11 - -0.05 0.00
Cheyne European Mid Cap Fund € 1080.63 - -0.99 0.00 funds@gam.com, www.jbfundnet.com Gb.Conc.Eq.Fd.Sterl.UK T £ 210.52 - 1.78 0.00 Emerging Markets Debt A F $ 84.77 - -0.17 0.00
European Opportunities I GBP £ 1.94 - 0.03 1.56 The First Investor QSCC Regulated
Ashmore SICAV Global Small Cap Equity Fund $ 135.33 - 1.01 0.00
5th Floor, Barwa Bank Building, Grand Hamad Street Emerging Markets Domestic Debt AX F £ 12.52 12.52 0.05 4.22
Ms EF Special Val. EUR/A € 146.93 - 1.70 1.07 Gb.Conc.Eq.Fd.Sterling £ 318.55 - 2.69 0.00
European Opportunities I USD $ 2.60 - 0.04 1.73 , P.O. Box 16034, Doha, State of Qatar Intrinsic Value Investors (IVI) LLP (IRL)
EM Mkts Corp.Debt USD F $ 90.85 - 0.23 7.92
Cheyne Capital Management (UK) LLP + 974 4459 6111 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Strategy Balanced-CHF/B SFr 153.69 - 0.66 0.00 Gb.Conc.Eq.Fd.US $ 212.00 - 1.96 0.00 Emerging Markets Equity A F $ 37.06 37.06 0.60 0.00
Other International Funds European Opportunities A EUR € 2.27 - 0.04 1.04 http://www.tfi.com.qa/ FCA Recognised
EM Mkts Loc.Ccy Bd USD F $ 83.29 - 0.42 3.82
Other International Funds Euro Bond A F € 16.51 16.51 0.03 -
IVI European Fund EUR € 19.31 - 0.23 0.00 Strategy Balanced-EUR € 158.89 - 0.87 0.00 Gb.Eq.Hdg Fd.Euro IRE T € 196.48 - 2.05 0.00
Cheyne European Event Driven Fund € 126.18 - -0.62 0.00 Global Opportunities I USD $ 1.63 - 0.01 1.22
TFI GCC Equity Opportunities Fund (Q)QAR 1245.70 - 11.19 0.00
Gb.Eq.Euro Hdg Fd. € 278.33 - 2.91 0.00 Euro Corporate Bond AX F £ 26.17 26.17 0.02 1.44
Cheyne Real Estate Credit Holdings Fund £ 168.24 - 0.22 0.00 IVI European Fund GBP £ 21.82 - 0.19 0.54 Strategy Balanced-USD/B $ 134.32 - 0.50 0.00
Global Opportunities I GBP £ 1.23 - 0.01 1.27

Gb.Eq.Fund Euro € 300.94 - 3.64 0.00 Euro Strategic Bond A F € 45.89 45.89 0.03 -
Cheyne Real Estate Credit Holdings Fund III £ 111.42 - 0.44 0.00 Strategy Growth-CHF/B SFr 94.80 - 0.60 0.00
Global Opportunities A GBP £ 1.15 - 0.01 0.76 Foord Asset Management
Other International Funds Gb.Eq. Fd Euro IRE T € 190.46 - 2.30 0.00 European Currencies High Yield Bd A F € 23.15 23.15 0.01 -
Cheyne Real Estate Debt Fund Class A1 £ 129.44 - -0.61 0.00 Strategy Growth-EUR € 119.00 - 0.95 0.00
Pan European Opportunities I EUR € 1.40 - 0.03 -
Foord International Trust $ 35.78 - 0.23 0.00 European Equity Alpha A F € 40.98 - 0.40 0.00
Strategy Inc-CHF/B SFr 121.50 - 0.29 0.00 Gb.Eq.Fd.Sterling UK T £ 255.47 - 2.21 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 200.42 - 8.05 0.00
Aspect Capital Ltd (UK) Foord Global Equity Fund_Class B $ 13.01 - 0.08 0.00 European Property A F € 34.92 34.92 0.05 -
Strategy Inc-EUR/B € 163.11 - 0.51 0.00 Gb.Eq.Fd.US Dollar $ 335.77 - 3.16 0.00
Other International Funds Cheyne Total Return Credit Fund 2020 $ 111.93 - 7.10 -

Gb.Eq.Fund Sterling £ 252.44 - 2.18 0.00 Eurozone Equity Alpha A F € 11.24 11.24 0.08 -
Aspect Diversified USD $ 416.57 - -4.18 0.00 Strategy Inc-USD/B $ 151.35 - 0.29 0.00
Invesco (LUX)
Franklin Templeton International Services Sarl (IRL) Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Global Bond A F $ 41.47 41.47 0.14 0.00
Aspect Diversified EUR € 248.69 - -2.57 0.00 Cohen & Steers SICAV (LUX) JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Gb.Val.Ex-Jap.Fd.USD $ 129.12 - 1.07 0.00
FCA Recognised
Regulated Other International Funds
Invesco Management SA Global Brands A F $ 106.59 - 2.05 0.00
Aspect Diversified GBP £ 129.23 - -1.27 0.00 Franklin Emerging Market Debt Opportunities Fund Plc Gb.Val.Ex-Japan Fd.Yen ¥ 13224.00 - 229.00 0.00
European Real Estate Securities € 23.9443 - 0.0830 1.69 EFG Hermes Invesco Active Multi-Sector Credit Fund A € 3.06 - 0.00 0.00
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Franklin Emg Mkts Debt Opp CHFSFr 17.88 - 0.39 8.56 Gb.Val.Fd. Euro € 142.89 - 1.50 0.00 Global Convertible Bond A F $ 42.18 - 0.11 0.00
Aspect Diversified CHF SFr 118.13 - -1.24 0.00
Europ.RealEstate Sec. IX € 32.6302 - 0.1131 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Invesco Asia Balanced A dist $ 14.48 - 0.14 3.54
Other International Funds Franklin Emg Mkts Debt Opp EUR € 12.63 - 0.25 6.59 Gb.Val.Fd.Sterling £ 145.66 - 1.03 0.00 Global Property A F $ 29.72 - 0.30 0.00
Aspect Diversified Trends USD $ 122.24 - -0.64 0.00
Gbl Listed Infrastructure I $ 10.8374 - 0.0977 -
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Invesco Asia Consumer Demand Fund A income $ 13.46 - 0.18 0.23
Franklin Emg Mkts Debt Opp GBP £ 11.06 - 0.28 6.41 Gb.Val.Fd.USD $ 114.75 - 0.90 0.00 Indian Equity A F $ 39.40 - 0.49 0.00
Aspect Diversified Trends EUR € 121.64 - -0.64 0.00
Gbl Listed Infrastructure IX $ 10.9641 - 0.0988 - Kames Capital VCIC (IRL)
EFG-Hermes Frontier Equity UCITS Fund Class I $ 1065.30 - -4.23 - Invesco Asia Infrastructure (A) $ 13.41 - 0.08 0.71 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Franklin Emg Mkts Debt Opp SGD S$ 23.41 - 0.56 5.13 Low Volatility Gb.Eq.Fd.Euro € 112.64 - 1.14 0.00 Latin American Equity A F $ 48.18 - 1.27 0.00
Aspect Diversified Trends GBP £ 127.66 - -0.66 0.00
Gbl RealEstate Sec. I $ 11.7784 - 0.0390 1.88 FCA Recognised
EFG-Hermes MENA Equity UCITS Fund Class A $ 965.88 - -26.69 - Invesco Asia Opportunities Equity A $ 112.06 - 1.47 0.00
Franklin Emg Mkts Debt Opp USD $ 18.00 - 0.36 6.60 Absolute Return Bond B GBP Acc 1095.80 - 0.34 1.69 Low Volatility Gb.Eq.Fd.Sterl £ 126.97 - 0.85 0.00 Short Maturity Euro Bond A F € 20.42 20.42 0.00 0.00
Gbl RealEstate Sec. IX $ 14.2091 - 0.0471 0.00
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Invesco Balanced Risk Allocation Fund A € 16.13 - 0.08 -
Eq Market Neutral B Acc 987.64 - 0.40 - Low Volatility Gb.Eq.Fd.USD $ 111.07 - 0.83 0.00 US Dollar Liquidity A F $ 13.03 - 0.00 0.00
Tuesday 6 September 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 Growth A F $ 71.07 - 0.45 - Pictet-Biotech-I USD F $ 686.60 - -1.08 0.00 European Income Acc EUR € 11.37 11.37 0.22 0.00 Renminbi Bond Fund USD Cls B $ 127.81 - -0.24 2.82

US Growth AH F € 48.84 48.84 0.31 0.00 Pictet-CHF Bonds I CHF SFr 514.05 - -0.15 0.00 European Ex UK Inc EUR Acc € 9.87 9.87 0.17 0.00 S W Mitchell Capital LLP (IRL) Renminbi Bond Fund YEN Cls B ¥ 14387.92 - -29.28 0.00
Regulated
US Growth AX F £ 53.28 53.28 0.04 - Pictet-China Index I USD $ 111.79 - 0.73 0.00 Financial Opps I USD $ 11.41 - 0.08 1.71 SWMC European Fund B EUR € 13606.80 - 205.25 0.00 Renminbi Bond Fund USD Cls A $ 176.18 - -0.33 3.06

US Property A F $ 77.15 - 1.31 0.00 Pictet-Clean Energy-I USD F $ 81.70 - 0.71 0.00 GEM Growth I USD $ 9.45 - 0.09 0.00 SWMC UK Fund B £ 11897.27 - 31.77 0.00 Renminbi Bond Fund GBP Cls A £ 170.52 - -0.33 3.26

Pictet-Digital Communication-I USD F $ 296.26 - 1.78 0.00 GEM Income I USD $ 10.34 - 0.07 0.00 SWMC Small Cap European Fund B EUR € 12631.60 - -13.81 0.00 Renminbi Bond Fund SGD Cls A S$ 169.06 - -0.32 3.19
Oasis Crescent Management Company Ltd TreeTop Asset Management S.A. (LUX) Yuki International Limited (IRL)
Other International Funds Regulated Tel +44-20-7269-0207 www.yukifunds.com
Morgens Waterfall Vintiadis.co Inc Pictet-Em Lcl Ccy Dbt-I USD F $ 172.10 - 0.03 0.00 Global Alpha I USD $ 13.38 13.38 0.13 0.00 Renminbi Bond Fund YEN Cls A ¥ 21293.00 - -43.00 0.00
SWMC Emerging European Fund B EUR € 10040.59 - -10.18 0.00 TreeTop Convertible Sicav Regulated
Other International Funds Oasis Crescent Equity Fund R 10.09 - 0.00 0.00
Yuki Mizuho Umbrella Fund
Pictet-Emerging Europe-I EUR F € 301.76 - 5.23 0.00 Global Convertible I USD $ 11.61 11.61 0.01 0.00 Renminbi Bond Fund EUR Cls A € 114.78 - -0.24 3.22 International A € 284.17 - 1.65 0.00
Phaeton Intl (BVI) Ltd (Est) $ 367.95 - -3.06 0.00
Yuki Mizuho Japan Dynamic Growth ¥ 6423.00 - 0.00 -
Pictet-Emerging Markets-I USD F $ 543.26 - 9.28 0.00 Global Insurance I GBP £ 5.06 - 0.00 0.00 International B $ 368.90 - 2.06 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Yuki Japan Low Price ¥ 24442.00 - 143.00 0.00
Regulated Pictet-Emerging Markets Index-I USD F $ 237.43 - 2.34 0.00 Global Technology I USD $ 26.84 - 0.19 0.00 International C £ 121.12 - 0.64 3.33
Oasis Global Investment (Ireland) Plc Yuki Japan Value Select ¥ 12376.00 - 17.00 -
Pictet-Emerging Corporate Bonds I USD $ 117.71 - 0.05 0.00 Healthcare Blue Chip Fund I USD Acc $ 10.81 10.81 0.09 0.00 International D € 255.56 - 1.48 3.17
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 1.22 YMR Umbrella Fund
Pictet-Emerging Markets High Dividend I USD $ 104.15 - 1.60 0.00 Healthcare Opps I USD $ 36.23 - 0.22 0.00 TreeTop Global Sicav
YMR N Growth ¥ 10931.83 - -2753.17 -
Oasis Global Equity $ 28.09 - 0.15 0.33 RobecoSAM (LUX)
Tel. +41 44 653 10 10 http://www.robecosam.com/ Global Opp.A € 144.04 - 1.08 0.00
Oasis Crescent Global Investment Fund (Ireland) plc Pictet-Emerging Markets Sust Eq I USD $ 92.33 - 0.77 0.00 Income Opportunities B2 I GBP Acc £ 1.85 1.85 0.00 0.00 Yuki Asia Umbrella Fund
Regulated E.I. Sturdza Strategic Management Limited (GSY)
Natixis International Funds (LUX) I SICAV (LUX) Global Opp.B $ 145.40 - 0.90 0.00
Regulated Yuki Japan Rebounding Growth Fund JPY Class ¥ 21601.00 - 47.00 -
One Carter Lane, London, EC4V 5ER, 0044 20 3405 6000 Oasis Crescent Global Equity Fund $ 28.89 - 0.16 0.11 Pictet-EUR Bonds-I F € 593.00 - -0.74 0.00 Japan Alpha I JPY ¥ 174.46 174.46 0.81 0.00 RobecoSAM Sm.Energy/A £ 13.51 - 0.08 1.40
FCA Recognised Nippon Growth Fund Limited ¥ 82234.00 - 3138.00 0.00
Global Opp.C £ 200.68 - 1.09 2.70 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 850.42 - 1.53 0.00
Oasis Crescent Variable Balanced Fund £ 10.69 - 0.04 1.37 Pictet-EUR Corporate Bonds Ex Fin i EUR € 151.87 - -0.16 0.00 Japan I JPY ¥ 1683.83 - 7.43 1.22 RobecoSAM Sm.Energy/N € 12.27 - 0.12 0.00
Harris Global Equity R/A (USD) $ 250.99 250.99 1.99 0.00
Strat Evarich Japan Fd Ltd JPY ¥ 68006.00 - 1392.00 0.00
Sequoia Equity A € 141.00 - 0.95 0.00
OasisCresGl Income Class A $ 10.86 - 0.01 2.50 Pictet-EUR Corporate Bonds-I F € 210.53 - -0.01 0.00 North American I USD $ 18.50 18.50 0.10 0.00 RobecoSAM Sm.Materials/A £ 150.55 - 0.97 1.16
Harris U.S. Equity Fund R/A (USD) $ 221.03 221.03 1.11 0.00
Strat Evarich Japan Fd Ltd USD $ 663.47 - 13.59 0.00
Sequoia Equity B $ 148.00 - 1.08 - Zadig Gestion (Memnon Fund) (LUX)
OasisCresGl LowBal D ($) Dist $ 11.98 - 0.05 0.00 Pictet-EUR Government Bonds I EUR € 167.13 - -0.20 0.00 UK Absolute Equity I GBP £ 14.39 14.39 0.09 0.00 RobecoSAM Sm.Materials/N € 155.46 - 1.55 0.00
Harris Concentrated U.S. Equity R/A (USD) $ 168.25 168.25 0.95 0.00 FCA Recognised
Sequoia Equity C £ 183.61 - 1.20 2.71
OasisCresGl Med Eq Bal A ($) Dist $ 12.23 - 0.06 0.61 Pictet-EUR High Yield-I F € 255.40 - 0.22 0.00 RobecoSAM Sm.Materials/Na € 107.31 - 1.06 0.00 Memnon European Fund I GBP £ 135.07 - 1.42 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 113.86 113.86 -0.03 0.00
E.I. Sturdza Funds PLC (IRL)
Oasis Crescent Gbl Property Eqty $ 10.14 - 0.04 1.61 Polar Capital LLP (CYM) Regulated
Pictet-EUR Short Mid-Term Bonds-I F € 137.52 - 0.01 0.00 RobecoSAM Gl.Small Cap Eq/A £ 92.87 - 0.45 1.08
Regulated UBS Asset Management (UK)
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 876.43 - -0.30 0.00
Natixis International Funds (Dublin) I plc (IRL) Pictet-EUR Short Term HY I EUR € 124.59 - 0.51 0.00 RobecoSAM Gl.Small Cap Eq/N € 166.04 - 1.39 0.00 21 Lombard Street, London, EC3V 9AH
One Carter Lane, London, EC4V 5ER, 0044 20 3405 6000
ALVA Convertible A USD $ 130.31 - 1.64 0.00
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1035.36 - -0.31 0.00 Client Services 0800 358 3012, Client Dealing 0800 358 3012
Data Provided by
Regulated Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.62 - 0.00 0.00 European Conviction A EUR € 142.38 - 3.03 0.00 RobecoSAM Sustainable Gl.Eq/B € 185.29 - 1.66 0.00 www.ubs.com/retailfunds
Nippon Growth (UCITS) Fund JPY Class A shares ¥ 82726.00 - -18.00 0.00 Authorised Inv Funds
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 13.38 13.38 0.01 1.27

Asset Management
Pictet-Euroland Index IS EUR € 129.82 - 2.33 0.00 European Forager A EUR € 160.78 - 2.31 0.00 RobecoSAM Sustainable Gl.Eq/N € 160.71 - 1.44 0.00 OEIC

Asset Management
Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 69404.00 - -15.00 0.00
Loomis Sayles High Income R/D (USD) $ 8.75 8.75 -0.01 - UBS Global Emerging Markets Equity C Acc £ 0.60 - 0.00 1.33
Pictet-Europe Index-I EUR F € 167.40 - 3.29 0.00 RobecoSAM S.HealthyLiv/B € 182.74 - 1.84 0.00
Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 12.65 12.65 0.01 5.39 UBS Global Optimal C Acc £ 0.79 - 0.00 1.02
Odey Asset Management LLP (CYM) Pictet-European Equity Selection-I EUR F € 623.74 - 10.12 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY) RobecoSAM S.HealthyLiv/N € 171.21 - 1.73 0.00
Regulated Regulated Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 45124.00 - -10.00 0.00

OEI Mac Inc GBP A £ 235.44 - -7.07 0.00

Pictet-European Sust Eq-I EUR F € 244.43 - 4.84 0.00
Monument Growth 30/08/2016 £ 512.27 517.67 2.95 1.18
RobecoSAM S.HealthyLiv/Na £ 125.25 - 0.83 -
UBS UK Opportunities C Acc £ 0.71 - 0.01 3.16
www.morningstar.co.uk
Strategic China Panda Fund USD $ 2274.06 - 2.33 0.00
Pictet-Global Bds Fundamental I USD $ 126.06 - -0.38 0.00 RobecoSAM S.Water/A £ 210.85 - 2.17 0.97
UBS US Equity C Acc £ 0.96 - 0.00 0.47 Data as shown is for information purposes only. No
OEI Mac Inc GBP B £ 142.47 - -5.59 0.00
Strategic China Panda Fund Hedged EURO € 2191.86 - 2.12 0.00
offer is made by Morningstar or this publication.
Pictet-Global Bonds-I EUR € 178.39 - -0.32 0.00 UBS S&P 500 Index C Acc £ 0.66 - 0.01 1.56
Prusik Investment Management LLP (IRL) RobecoSAM S.Water/N € 181.93 - 2.51 0.00
OEI MAC Inc USD $ 1236.63 - -37.94 0.00
Enquiries - 0207 493 1331 Strategic China Panda Fund Hedged Sterling £ 2229.27 - 2.23 0.00
Pictet-Global Emerging Currencies-I USD F $ 101.36 - 0.00 0.00 UBS Targeted Return C Acc £ 12.39 - 0.04 1.69
Regulated
Odey European Inc EUR € 544.87 - -17.67 0.00
Strategic Euro Bond Accumulating Class CHFSFr 988.69 - 0.34 0.00
New Capital Fund Management Ltd (IRL) Prusik Asian Equity Income B Dist $ 177.50 - 1.23 3.73 UBS Sterling Corporate Bond Indexed C Acc £ 0.63 - 0.00 2.84
Pictet-Global Emerging Debt-I USD F $ 400.04 - 0.10 0.00
Leconfield House, Curzon Street, London, W1J 5JB Odey European Inc GBP A £ 214.70 - -6.77 0.00
Strategic Euro Bond Institutional Class EUR € 1024.70 - 0.42 0.00
FCA Recognised
New Capital UCITS Funds
Odey European Inc GBP B £ 121.82 - -3.84 0.00
Pictet-Global Env.Opport-I EUR € 173.18 - 2.19 0.00
Prusik Asia A $ 206.36 - 1.52 0.00

Strategic Euro Bond Fund Accumulating Class Shares € 1146.41 - 0.46 0.00
UBS Multi Asset Income C Inc Net £ 0.50 - 0.00 3.06
Guide to Data
Prusik Asian Smaller Cos A $ 161.89 - 0.33 0.00 UBS UK Equity Income C Inc Net £ 0.61 - 0.01 -
Pictet-Global Megatrend Selection-I USD F $ 234.02 - 1.59 0.00
Asia Pac Bd USD Inst Inc $ 96.47 - 0.02 3.26 Odey European Inc USD $ 253.43 - -8.16 0.00
Strategic Euro Bond Fund Distributing Class Shares € 1035.26 - 0.42 0.00 The fund prices quoted on these pages are supplied by
Pictet-Greater China-I USD F $ 480.26 - 7.81 0.00 UBS Corporate Bond UK Plus C Inc Net £ 0.56 - 0.00 3.62 the operator of the relevant fund. Details of funds
Asia Pac Bd USD Ord Inc $ 98.50 - 0.02 2.59 Giano Capital EUR Inc € 4398.20 - 4.97 0.00 Schroder Property Managers (Jersey) Ltd published on these pages, including prices, are for the
Purisima Investment Fds (CI) Ltd (JER) Strategic European Smaller Companies Fund EUR Class € 1042.00 - 7.11 0.00
Other International Funds UBS Global Allocation (UK) C Acc £ 0.70 - 0.01 2.20 purpose of information only and should only be used
Pictet-Health-I USD $ 262.71 - 0.34 0.00
Asia Pac Eq EUR Ord Inc € 91.47 - 0.23 2.72 Regulated as a guide. The Financial Times Limited makes no
Indirect Real Estate SIRE £ 125.50 134.94 -1.50 - Strategic Global Bond RMB Acc $ 1074.85 - -3.26 0.00 representation as to their accuracy or completeness
Pictet-High Dividend Sel I EUR F € 164.64 - 2.15 0.00 PCG B 171.59 - -1.61 0.00 UBS Global Enhanced Equity Income C Inc £ 0.46 - 0.01 10.43
Asia Pac Eq GBP Ord Inc £ 94.82 - 0.24 3.35 Odey Asset Management LLP (IRL) and they should not be relied upon when making an
FCA Recognised Strategic Global Bond USD Acc $ 1078.15 - -1.48 0.00 investment decision.
Pictet-India Index I USD $ 104.45 - 0.66 0.00 PCG C 168.99 - -1.59 0.00 UBS US Growth C Acc £ 0.97 - 0.00 0.00
Asia Pac Eq USD Ord Inc $ 96.64 - 0.25 2.68 Odey Pan European EUR R € 289.76 - 3.47 0.00 SIA (SIA Funds AG) (CH) Strategic US Momentum and Value Fund $ 734.73 - 3.35 0.00 The sale of interests in the funds listed on these pages
Pictet-Indian Equities-I USD F $ 489.41 - 3.04 0.00 Other International Fds UBS Emerging Markets Equity Income C Inc £ 0.44 - 0.00 4.83 may, in certain jurisdictions, be restricted by law and
Asia Pac Eq USD Inst Acc $ 106.25 - 0.28 0.00 Odey Absolute Return Focus Fund $ 95.67 - -1.76 - the funds will not necessarily be available to persons
Strategic US Momentum & Value Fund USD I Class $ 489.82 - 2.24 0.00 in all jurisdictions in which the publication circulates.
Pictet-Japan Index-I JPY F ¥ 14303.84 - 33.79 0.00
Putnam Investments (Ireland) Ltd (IRL) LTIF Stability Growth SFr 192.90 - 1.90 - UBS FTSE RAFI Dev 1000 Index J Acc £ 117.70 - 0.90 1.62
Asia Pac Eq USD Inst Inc $ 107.81 - 0.28 3.24 Persons in any doubt should take appropriate
Odey Allegra European EUR O € 254.78 - 4.33 0.00 Regulated
Strategic US Momentum and Value EUR Hedged Class EUR € 508.82 - 2.27 0.00 professional advice. Data collated by Morningstar. For
LTIF Stability Inc Plus SFr 165.60 - 1.70 0.54 UBS MSCI World Min Vol Index J Acc £ 134.32 - 1.01 1.52 other queries contact reader.enquiries@ft.com +44
Pictet-Japanese Equities Opp-I JPY F ¥ 8643.09 - 4.00 0.00 Putnam New Flag Euro High Yield Plc - E € 1027.78 - 0.36 3.65
Dyn Europ Eq EUR Ord Inc € 169.31 - 3.20 1.10 Odey Allegra International EUR O € 155.71 - 1.51 0.00 (0)207 873 4211.
Strategic US Momentum and Value CHF Hedged Class CHFSFr 503.51 - 2.23 0.00
Pictet-Japanese Equity Selection-I JPY F ¥ 12654.42 - 17.60 0.00
Dyn Europ Eq GBP Ord Inc £ 178.19 - 3.35 1.59 Odey Allegra Developed Markets USD I $ 135.12 - 1.55 0.00 The fund prices published in this edition along with
Standard Life Wealth (JER) Unicapital Investments (LUX) additional information are also available on the
Pictet-LATAM Lc Ccy Dbt-I USD F $ 127.44 - 0.78 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Financial Times website, www.ft.com/funds. The
Dyn Europ Eq USD Ord Inc $ 170.22 - 3.21 1.04 Regulated
Odey European Focus Fund € 17.28 - 0.25 0.00 funds published on these pages are grouped together
FCA Recognised
Pictet-Multi Asset Global Opportunities-I EUR € 119.25 - 0.31 0.00 Investments III € 5.03 - -22.38 - by fund management company.
China Equity EUR Ord Acc € 130.30 - 0.16 0.00 Standard Life Offshore Strategy Fund Limited
Odey Giano European Fund EUR R € 113.37 - 0.05 0.00
Investments IV - European Private Eq. € 206.46 216.79 0.00 0.00 Prices are in pence unless otherwise indicated. The
Pictet-Pacific Ex Japan Index-I USD F $ 356.16 - -0.96 0.00 Bridge Fund £ 1.7697 - 0.0008 2.02
China Equity GBP Ord Acc £ 136.50 - 0.17 0.00 Odey Naver Fund EUR I € 114.89 - 0.31 0.00 change, if shown, is the change on the previously
quoted figure (not all funds update prices daily). Those
Pictet-Premium Brands-I EUR F € 145.65 - 1.36 0.00 Diversified Assets Fund £ 1.2418 - -0.0001 3.31 Investments IV - Global Private Eq. € 286.62 300.95 0.00 0.00 designated $ with no prefix refer to US dollars. Yield
China Equity USD Ord Acc $ 133.80 - 0.17 0.00 Odey Odyssey USD I $ 120.10 - -1.40 0.00 Ram Active Investments SA
percentage figures (in Tuesday to Saturday papers)
www.ram-ai.com Superfund Asset Management GmbH allow for buying expenses. Prices of certain older
Pictet-Quality Global Equities I USD $ 146.15 - 0.55 0.00 Global Equity Fund £ 2.1070 - 0.0003 1.40
China Equity USD Inst Acc $ 138.39 - 0.18 0.00 Other International Funds www.superfund.com, +43 (1) 247 00 insurance linked plans might be subject to capital
Odey Swan Fund EUR I € 63.50 - -0.29 0.00
Pictet-Russia Index I USD $ 57.85 - 1.20 0.00 RAM Systematic Emerg Markets Core Eq $ 87.26 - 0.76 - Global Balanced Fund - Income Units £ 1.5014 - 0.0029 2.40
Regulated Value Partners Hong Kong Limited (IRL) gains tax on sales.
Europ. Equity Fd EUR € 102.46 - 1.93 - Odey European Absolute Return GBP S £ 90.33 - 0.32 0.00 www.valuepartners.net, fis@vp.com.hk
Superfund Green EUR SICAV € 917.63 - 2.96 0.00 Guide to pricing of Authorised Investment Funds:
RAM Systematic Emerg Markets Eq $ 158.02 - 1.08 - Regulated
Pictet-Russian Equities-I USD F $ 56.16 - 1.08 0.00 Global Balanced Fund - Accumulations Units £ 1.7873 - 0.0033 2.36 (compiled with the assistance of the IMA. The
Europ. Equity Fd GBP £ 100.27 - 1.89 -
Superfund Red EUR SICAV € 812.96 - 1.71 0.00 Value Partners Asia Dividend Stocks Fund $ 9.32 - 0.06 0.00 Investment Management Association, 65 Kingsway,
Pictet-Security-I USD F $ 214.66 - 1.43 0.00 RAM Systematic European Eq € 386.06 - 5.01 - Global Fixed Interest Fund £ 1.0407 - 0.0000 4.51 London WC2B 6TD.
Europ. Equity Fd USD $ 101.91 - 1.93 - Odey Wealth Management (CI) Ltd (IRL) Tel: +44 (0)20 7831 0898.)
Superfund Blue EUR € 881.64 - 6.40 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 11.69 - 0.16 0.00
www.odey.com/prices
Pictet-Select-Callisto I EUR € 103.11 - 0.05 0.00 RAM Systematic Global Shareholder Yield Eq $ 105.56 - 0.40 0.00 Sterling Fixed Interest Fund £ 0.9276 - -0.0013 3.70
Global Val.Cr.Fd GBP Ord Inc £ 113.75 - 0.00 3.56 FCA Recognised OEIC: Open-Ended Investment Company. Similar to a
Value Partners Classic Equity Fund CHF HedgedSFr 12.04 - 0.16 0.00 unit trust but using a company rather than a trust
Odey Opportunity EUR I € 218.46 - 1.22 0.00 Pictet-Small Cap Europe-I EUR F € 1125.23 - 9.05 0.00 RAM Systematic Long/Short Emerg Markets Eq $ 119.95 - -0.22 - UK Equity Fund £ 2.0140 - 0.0181 2.83 structure.
Global Val.Cr.Fd USD Inst Acc $ 130.82 - 0.00 0.00
The Hartford International Funds (IRL) Value Partners Classic Equity Fund EUR Hedged € 12.22 - 0.17 0.00
Pictet-ST.MoneyMkt-I € 140.23 - -0.01 - RAM Systematic Long/Short European Eq € 142.23 - 0.34 - Regulated Different share classes are issued to reflect a different
Global Val.Cr.Fd GBP Ord Acc £ 187.86 - -0.01 0.00 currency, charging structure or type of holder.
Gbl Govt Bond (Ex Japan) Index (GBP) £ 1904.27 - -6.67 0.00 Value Partners Classic Equity Fund GBP Hedged £ 12.51 - 0.14 0.00
Omnia Fund Ltd Pictet-ST.MoneyMkt JPY I USD ¥ 101417.24 - -0.80 0.00 RAM Systematic North American Eq $ 251.43 - 2.07 -
Global Val.Cr.Fd USD Ord Acc $ 176.48 - 0.00 0.00 Selling price: Also called bid price. The price at which
Other International Funds Value Partners Classic Equity Fund GBP Unhedged £ 14.41 - 0.05 0.00
UK Corporate Bond £ 1774.43 - -1.45 0.00 units in a unit trust are sold by investors.
Pictet-ST.MoneyMkt-ICHF SFr 123.53 - -0.01 0.00 RAM Tactical Convertibles Europe € 144.37 - 0.67 -
Global Val.Cr.Fd EUR Ord Acc € 162.85 - -0.01 0.00 Estimated NAV $ 875.65 - 16.02 0.00
Value Partners Classic Equity USD Hedged $ 14.32 - 0.19 0.00 Buying price: Also called offer price. The price at
Gilt £ 1815.43 - -2.96 0.00
Pictet-ST.MoneyMkt-IUSD $ 136.04 - 0.00 0.00 RAM Tactical Global Bond Total Return € 144.76 - -0.06 - which units in a unit trust are bought by investors.
Swiss Select Equity Inst Acc SFr 123.83 - 0.83 0.00 Includes manager’s initial charge.
Global Eq (Ex Japan) Index Fund ¥ 1.45 - 0.01 0.00 Value Partners Greater China Equity Fund $ 8.73 - 0.06 0.00
Pictet-Timber-I USD F $ 153.77 - 1.11 0.00 RAM Tactical II Asia Bond Total Return $ 136.48 - 0.01 -
Swiss Select Equity Ord Acc SFr 121.86 - 0.81 0.00 Stenham Asset Management Inc Single price: Based on a mid-market valuation of the
www.stenhamassetmanagement.com Global Eq (ex Japan) Class HJ4 ¥ 1.51 - 0.01 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 10.75 - 0.08 0.00 underlying investments. The buying and selling price
Pictet Total Ret-Agora I EUR € 116.59 - 0.17 0.00 for shares of an OEIC and units of a single priced unit
US Growth USD Ord Acc $ 204.32 - 0.24 0.00 Other International Funds
Value Partners Health Care Fund HKD Class A UnhedgedHK$ 10.05 - 0.08 0.00 trust are the same.
Global Eq (ex Japan) Class JP5 ¥ 1.41 - 0.02 0.00
Pictet Total Ret-Corto Europe I EUR € 137.42 - 0.85 0.00 Stenham Asia USD $ 122.25 - 2.31 0.00
US Growth EUR Ord Acc € 193.59 - 0.22 0.00 Treatment of manager’s periodic capital charge:
Global Eq Ex Japan Index Fund (Hedge) ¥ 1.29 - 0.02 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 10.07 - 0.08 0.00
The letter C denotes that the trust deducts all or part
Pictet Total Ret-Divers Alpha I EUR € 106.15 - 0.07 0.00 Stenham Credit Opportunities A Class USD $ 101.21 - 0.85 0.00 of the manager’s/operator’s periodic charge from
US Growth GBP Ord Acc £ 204.08 - 0.24 0.00 Optima Fund Management
Gbl Govt Bond (Ex Japan) Index ¥ 1.22 - 0.01 0.00 capital, contact the manager/operator for full details
Other International Funds Pictet Total Ret-Kosmos I EUR € 110.53 - 0.04 0.00 Stenham Equity UCITS USD $ 140.51 - -0.47 0.00 of the effect of this course of action.
US Growth USD Inst Acc $ 189.75 - 0.22 0.00 Waverton Investment Funds Plc (1600)F (IRL)
Cuttyhunk Fund II Limited $ 1386.05 - 35.38 0.00 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.19 - 0.01 0.00
Pictet Total Ret-Mandarin I USD $ 119.67 - 0.53 0.00 Stenham Growth USD $ 202.01 - 4.32 - waverton.investments@citi.com Exit Charges: The letter E denotes that an exit charge
Wealthy Nat Bd EUR Inst Inc € 115.54 - -0.17 3.22 Robeco Asset Management (LUX) may be made when you sell units, contact the
FCA Recognised
JENOP Global Healthcare Fund Ltd $ 12.36 - 0.12 0.00 Weena 850, 3014 DA Rotterdam, The Netherlands Japan Equity Index Fund ¥ 0.94 - 0.01 0.00 manager/operator for full details.
Pictet-US Equity Selection-I USD $ 194.69 - 0.85 0.00 www.robeco.com/contact Stenham Healthcare USD $ 172.55 - 7.58 0.00 Waverton Asia Pacific A USD $ 19.52 - 0.11 5.29
Wealthy Nat Bd GBP Inst Inc £ 120.62 - -0.17 3.35
OPTIKA Fund Limited - Cl A $ 94.90 - 0.38 0.00 FCA Recognised Japan Equity Class JP3 ¥ 1.13 - 0.00 0.00 Time: Some funds give information about the timing of
Pictet-US High Yield-I USD F $ 152.53 - 0.15 0.00 Stenham Managed Fund USD $ 108.76 - 1.95 0.00 Waverton Global Equity Fund A GBP £ 16.47 - 0.04 0.44 price quotes. The time shown alongside the fund
Wealthy Nat Bd EUR Ord Inc € 114.80 - -0.17 2.96 Asia-Pacific Equities (EUR) € 139.04 - 1.88 0.00 manager’s/operator’s name is the valuation point for
Optima Fd NAV $ 84.87 - 0.10 0.00 their unit trusts/OEICs, unless another time is
Pictet-USA Index-I USD F $ 194.38 - 0.82 0.00 Stenham Macro UCITS USD $ 96.15 - -0.53 0.00 Waverton Global Strategic Bond Fund A USD $ 8.64 - 0.00 4.99
Wealthy Nat Bd GBP Ord Inc £ 121.47 - -0.17 3.11 Chinese Equities (EUR) € 78.79 - 1.23 0.00 indicated by the symbol alongside the individual unit
Optima Discretionary Macro Fund Limited $ 84.98 - 0.06 0.00 trust/OEIC name.
Pictet-USD Government Bonds-I F $ 667.00 - -1.44 0.00 Stenham Multi Strategy USD $ 107.79 - -1.69 - Waverton UK Fund A GBP £ 14.20 - 0.11 1.64
Wealthy Nat Bd USD Ord Inc $ 118.82 - -0.17 2.91 Em Stars Equities (EUR) € 184.53 - 3.36 0.00
The Dorset Energy Fd Ltd NAV $ 37.20 - 1.61 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
New Capital Alternative Strategies Pictet-USD Short Mid-Term Bonds-I F $ 131.44 - -0.02 0.00 Stenham Quadrant USD A $ 399.21 - 0.09 - Waverton Equity Fund A GBP £ 16.10 - 0.01 0.33 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Emerging Markets Equities (EUR) € 158.61 - 2.99 0.00 midnight. Daily dealing prices are set on the basis of
All Weather Fd USD Cls $ 114.97 - 0.91 0.00 Platinum Fd Ltd $ 87.15 - 0.61 0.00 the valuation point, a short period of time may elapse
Pictet-USD Sov.ST.Mon.Mkt-I $ 103.03 - 0.00 0.00 Stenham Trading Inc USD $ 115.60 - 0.03 - Waverton Sterling Bond Fund A GBP £ 9.78 - -0.01 4.94
Flex-o-Rente (EUR) € 109.00 - 0.07 0.00 before prices become available. Historic pricing: The
All Weather Fd EUR Cls € 102.64 - 0.69 0.00 Platinum Fd Ltd EUR € 16.66 - 0.10 0.00 Toscafund Asset Management LLP (UK) letter H denotes that the managers/operators will
Pictet-Water-I EUR F € 304.76 - 5.39 0.00 Stenham Universal USD $ 410.76 - 4.05 -
www.toscafund.com normally deal on the price set at the most recent
Glob.Consumer Trends Equities (EUR) € 155.04 - 1.38 0.00
Platinum Japan Fd Ltd $ 55.60 - 0.01 0.00 valuation. The prices shown are the latest available
All Weather Fd GBP Cls £ 110.83 - 0.82 0.00 Authorised Funds
Stenham Universal II USD $ 151.67 - 1.44 0.00 WA Fixed Income Fund Plc (IRL) before publication and may not be the current dealing
High Yield Bonds (EUR) € 137.12 - 0.10 0.00 Regulated levels because of an intervening portfolio revaluation
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22 ★ FINANCIAL TIMES Tuesday 6 September 2016

MARKETS & INVESTING

INSIGHT Commodities

Mohamed
El-Erian Saudis and Russia eye oil co-operation
World’s chief producers said at the G20 meeting in China that end. Greater co-operation has been
6% recovered to pre-sanctions levels. Mr
they could limit output, while establish- under discussion for almost a year, but Falih said he believed, however, that
stop short of formally ing a “working group” to explore other lower prices and Middle East geopolitics Rise in Brent crude Iran’s output was already at that level.
on news of Saudi-
Central bank influence agreeing to freeze output ways to reduce market volatility. Russia
is the largest exporter outside of Opec.
“Freezing production is one of the
— each country supports opposing sides
in Syria’s civil war — is creating strain.
Russia was ready to join the cartel in
Russia plan to cap
oil output, before
falling back to
That sticking point may have to be
dealt with by Messrs Putin and Bin Sal-
man. Mr Putin said yesterday it would
wanes amid shifting DAVID SHEPPARD — LONDON
JACK FARCHY — MOSCOW
preferred possibilities but it does not
have to happen specifically today,”
freezing output in April before Saudi
Arabia halted talks at the last minute,
near $47 a barrel be “fair” to allow Iran to raise produc-
tion, but it was not clear if the Saudi

policy landscape Saudi Arabia and Russia yesterday said

they would co-operate to try to stabilise
oil markets, but stopped short of agree-
ing immediate action to restrict produc-
tion and end a glut that has halved
Saudi oil minister Khalid Al Falih said.
News of their planned co-operation
initially sent prices shooting higher,
with international benchmark Brent
crude gaining as much as 6 per cent to
refusing to join any deal without the
participation of its regional rival Iran.
Russia’s energy minister Alexander
10.7 m
Record number
of barrels a day
prince would make such a concession.
Some analysts doubt Saudi Arabia’s
willingness to cut production after it led
Novak described yesterday’s agreement Saudi Arabia Opec two years ago in its decision to
produces, despite
as “historic” but tensions remained saying it is not
keep production high in the face of ris-

F
riday’s US jobs report, coupled with develop-
ments in Japan and what is likely to be an
unchanged ECB policy stance this week, raise
questions as to whether central banks will
remain such a great blessing for investors.
With increasing concerns about the longer-term impact
of their unconventional involvement in financial markets
— which, so far, has delivered to investors the dream team
of high returns, low volatility and profitable correlations —
financial valuations are now likely to be influenced a lot
more by economic and corporate fundamentals, as well as
some rather crowded portfolio positioning.
For years, students of markets were warned, “Don’t fight
the Fed”. After all, the central bank controlled the liquidity
“punch bowl” — the more it served, the more supportive
the environment for asset values. But this was never meant
to be an open-ended party. The punch bowl was to be with-
drawn when officials saw threats to the maintenance of
low and stable inflation.
The insight evolved when, following the global financial
crisis, central banks took primary responsibilities for mac-
roeconomic policy. With that came a change in how they
interacted with markets. Focusing on the “asset channel”
as the major conduit to their objective of higher growth —
that is, boosting asset prices to encourage consumption
(through the wealth effect) and investment (via animal
spirits) — they expanded their tool kit to include large-
scale purchases of market securities, ultra-low (and, in
some cases, even negative) policy rates and more aggres-
sive forward policy guidance. As investors understood the
potency of these unconventional policies for asset prices,
though not necessarily economic outcomes, they were
conditioned not just to buy what central banks were them-
selves buying, but also to front-run the beneficial spillover
on to other market segments.
The advantages extended
beyond high returns. Unprec-
edented central bank activ-
The days of
ism repressed financial vola- win-win-win
tility, enticing investors to
take on higher market expo-
outcomes could
sures for each unit of meas- be coming to
ured risk. By boosting a wide
range of asset prices (includ-
an end
ing, and unusually, simulta-
neous price increases for both stocks and “risk-free” gov-
ernment bonds), central banks reduced the drag on finan-
cial returns from risk-mitigating portfolio diversification.
prices in the past two years. $49.40 a barrel. readily apparent. flooding the market ing US shale oil output, triggering a fur-
Traders have been watching for signs But Brent quickly retraced most of its While Mr Novak said an output cap ther drop in prices.
the world’s biggest producers could cap gains to trade nearer $47 a barrel, after it was “the most effective instrument,” Saudi Arabia has insisted it is not
output when they meet in Algiers later became clear there was no concrete with details of a plan “currently being flooding the market, although its pro-
this month, with some Opec members agreement. discussed”, Mr Falih suggested freezing duction has reached a record near 10.7m
clamouring to shore up the price. The pact at the G20 followed a meet- production may not be necessary. barrels a day.
The energy ministers of Russia and ing between Mohammed bin Salman, The Russian minister also said a pro- “They don’t want to see prices fall
Saudi Arabia, which together produce Saudi deputy crown prince, and Russian duction deal may not have to include back to the lows,” said Petromatrix ana-
more than a fifth of the world’s crude, President Vladimir Putin at the week- Iran until Tehran’s production had lyst Olivier Jakob.
Analysis. The month ahead
September promises a complex harvest
Big three central banks meet Checklist
and US candidates face off
before possible oil output deal
FT REPORTERS
August was marked by tight ranges and
low volatility across many markets.
September serves up events that have
the potential to complicate the picture
for investors wrestling with such ques-
tions as whether the historic rally in
bonds will last and whether the dollar
will end the year on a high note.
The five main events to watch include
three central bank meetings:
ECB
The action begins on Thursday with a
meeting of the governing council of the
European Central Bank, which is
reshaping the region’s bond market with
a quantitative easing programme that
since June has included buying corpo- September 21 Fed policy meeting
rate debt. Andrew Harrer/Bloomberg

Nowadays, the market influence of central banks is in
the process of changing and will probably wane. This is not
because they are all getting out of the business of boosting
asset prices. They are not. Rather, it is because policies are
becoming more divergent and potentially less effective.
While not yet deterministic, Friday’s jobs report sig-
nalled enough robustness in the US labour market to keep
an interest rate rise in play for 2016. The likelihood would
increase significantly if Fed officials were to share my wor-
ries about the growing risk of future instability, be it on
account of excessive risk taking by non-banks, surging
debt levels or growing institutional constraints on the pro-
vision of longer-term financial protection services (eg,
retirement and insurance).
On the other side of the Pacific, counter-intuitive move-
ments in markets this year — bonds, currency and stocks —
point to the declining effectiveness of the Bank of Japan
and this despite its signalled willingness to go even further
in applying unconventional measures.
This leaves the ECB and the People’s Bank of China doing
most of the heavy lifting in repressing global financial
volatility and boosting asset prices. Both have signalled
readiness to press harder on the stimulus pedal if needed,
but neither is in a hurry to build more buffers now. It would
take a notable downturn in economic activity. Even
with that, the burden of bolstering global debt and
stock markets could prove too heavy for them to carry on
their own. The days of central banks delivering win-win-
win outcomes to investors — that is, high returns, low vola-
tility and profitable correlations — could be coming to an
end. Rather than be determined by extraordinary liquid-
ity injections, investment returns and the success of risk
management will probably depend a lot more in future on
economic and corporate fundamentals.
Given also crowded portfolio positioning, this is a good
time for investors to bring down market exposures, be it in
risk assets or, reflecting the valuation and covariance
anomalies of recent years, in government bonds, too. Rais-
ing cash also provides higher portfolio resilience, as well as
improved agility to navigate the likely pick up in market
volatility. A timely and orderly reduction in excessive risk
taking would also be good for the system, reducing the
probability of future economic growth being disrupted by
unsettling financial volatility.
The writer is chief economic adviser to Allianz, chair of Presi-
dent Obama’s Global Development Council and author of two
bestsellers, including this year’s ‘The Only Game in Town’
Speculation over what Mario Draghi,
the ECB president, has up his sleeve
focuses on whether he will lengthen the
€80bn-a-month programme beyond
next spring and ease the rules governing
what can be bought.
Economists are divided: 50 per cent
forecast an extension, according to a
survey by Bloomberg. “What we’re
looking for is an increase in the pool of
eligible assets or relaxation of the rules,”
says Marc Stacey, a fund manager at
BlueBay, a fixed-income specialist.
That might involve the ECB tweaking
its capital key, whereby the amount of
bonds bought must correspond to the
country’s gross domestic product.
Analysts at Morgan Stanley reckon
the ECB will buy unsecured bank debt,
but not until its December meeting.
If nothing is done this week, investors
expect hints for the rest of the year.
BoJ
Foreboding surrounds the September
20-21 meeting of the Bank of Japan after
more than six months of negative inter-
est rates, a host of unintended conse-
quences and an expanded Y6tn pro-
gramme of exchange traded fund pur-
chases that has made the central bank a
stock market whale.
Haruhiko Kuroda, above right, BoJ
governor, has said been provocative and
unreadable. “It is often argued that
there is a limit to monetary easing, but I
do not share such a view,” he said on
Monday.
Shusuke Yamada, currency strategist
at BofA Merrill Lynch, says the options
are that the BoJ could widen its target of
Y80tn a year, negative interest rates
could deepen, and the central bank
could give itself more time to hit its 2 per
cent inflation target.
Any of these scenarios could produce
yen volatility.
“The dollar/yen market still has resid-
September 21
BoJ gives
latest
economic
assessment
September 8 ECB monetary
policy meeting
ual expectations for the BoJ to do some-
thing big,” he adds. “And there will be
disappointment if it does not.”
Fed
Hours after the BoJ, it is the turn of poli-
cymakers at the US Federal Reserve.
Will the central bank will implement a
second rate rise?
Officials including chair Janet Yellen,
vice-chair Stanley Fischer and the head
of the New York Fed, William Dudley,
have hinted at another quarter-point
increase in the federal funds target rate.
That has forced markets to consider the
prospect more seriously.
However, many participants and ana-
lysts remain sceptical that the Fed will
follow through, seeing the hints as an
‘You know attempt to leave the door open rather
than as a concrete plan.
what you Underwhelming employment data
can expect released last Friday have, on balance,
increased that scepticism and would
from make a move more of a shock.
Clinton Kevin Giddis, head of fixed income at
Raymond James, the investment service
. . . Trump group, says the slower jobs growth in
is viewed as August will put policymakers off such a
move.
more of a “If the Fed wishes to remain credible
volatility in the marketplace, it must stay true to
its ‘data dependent’ statement,” he says.
risk’ Economists at Goldman Sachs, Bar-
September 26 First US
presidential debate
clays and BNP Paribas, meanwhile, are
sticking with their forecast of a rate rise.
The meeting and fallout promise to be
interesting.
US election debate
The race for the White House has yet to
do more than flicker on investors’
radars. On September 26, when Hillary
Clinton and Donald Trump face off in
the first presidential debate, that situa-
tion could well change.
“The first debate is usually the one
that matters and the one people remem-
ber,” says David Donabedian, chief
investment officer at Atlantic Trust, a
wealth manager.
“You know what you can expect from
Clinton. She is solid, well-versed, not
spectacular, but fairly predictable
. . . Trump is viewed as more of a volatil-
ity risk because there is no road map on
how he would govern.”
Given Mrs Clinton’s lead in the polls,
one risk for investors is that an impres-
sive display by Mr Trump tightens the
race. Another is that a calamitous show-
ing by the Republican nominee fans
speculation that the Democrats might
make a clean sweep of the White House
and Congress — a possibility that inves-
tors consider remote.
While the consensus on Wall Street is
that the election is Mrs Clinton’s to lose,
September 26-28 Opec
producers to meet in Algiers
some in the markets detect an echo of
investors’ complacency ahead of Brit-
ain’s vote for Brexit.
Opec
Oil traders are closely watching the
build-up to the International Energy
Forum meeting in Algiers on September
26-28, with Opec due to hold an unoffi-
cial meeting on the sidelines.
Plans to freeze output took a boost
yesterday when Russia, the largest
exporter outside the cartel, signed an
agreement with Riyadh to co-operate on
boosting stability in the oil market.
But barriers to a deal remain, with two
years of low prices putting additional
strain on relations between the world’s
largest producers.
Iran, which has agreed to attend the
meeting, has said it cannot cap output
given that sanctions on its oil industry
were lifted only in January, leaving it
struggling to regain ground.
The stance of Iran, as the Saudis’ chief
rival in the Middle East, may be too
much for Riyadh to stomach, even as
Russia argues that the country deserves
an exemption from the freeze plans.
Similar tensions derailed such an
attempt in April. Much is at stake. Prices
have risen10 per cent since the talks
were mooted last month.
See Lex

Currencies

Pound hits 7-week high as services record biggest monthly jump in decades
ROGER BLITZ
Further better-than-expected data on
the UK economy put the wind in ster-
ling’s sails after the services sector
recorded its biggest monthly jump in
20 years, defying expectations of a fur-
ther leg lower for a currency trading at
a seven-week high.
Sterling rose 0.6 per cent to $1.3375 after
the release of the purchasing managers’
business activity index, which showed a
jump from July’s 47.4 to 52.9. That is the
pound’s highest level since July 15,
though it retreated by mid-morning to
stand at $1.3330.
Sterling popped against the euro, ris-
ing half a per cent to €1.1971, its highest
in nearly five weeks, before easing back
to €1.1926.
Coming on top of robust manufactur-
ing and construction figures, the serv-
ices data were evidence of the UK econ-
omy’s “bouncebackability”, Sam Hill,
senior economist at RBC Capital Mar-
kets, said, though he added it was still
“very early days” in interpreting the
reaction of the economy to the vote.
Since the immediate post-vote reac-
tion sent the pound to a 31-year low, it
has traded broadly in a $1.29 to $1.31
range, staving off expectations of fur-
ther falls. The Bank of England’s mone-
tary policy easing package has been
largely well received by the market.
Long-term concerns persist. Japan
pulled a surprise at the G20 summit in
China by publishing a memo warning
that its banks and other companies
could leave Britain if the UK’s access to
the single market were impeded.
According to Paul Lambert at Insight
Investment, speculative positioning in
the pound appears to be short, leaving
the risk that it will squeeze higher,
buoyed by the bounce-run of better data
on the economy.
Bets on a further drop in sterling
remain close to record levels, according
to data from the Commodity Futures
Trading Commission.
“However, long term, it is still likely
that UK firms’ access to the European
market will be impeded, and statements
from the Japanese provide an insight
into how firms are likely to react, for-
eign and domestic,” Mr Lambert said.
“The negative impacts of Brexit are just
as real as they ever were. They just
haven’t arrived yet.”
Jeremy Cook, chief economist at pay-
ments company World First, said
reports of higher confidence, export
orders and foreign demand were “heart-
ening” but a proportion of the rebound
came from the pound’s devaluation.
That was a double-edged sword: higher
inflation expectations could squeeze the
public’s spending power.
“The UK economy is bearing up well
from the vote, but we haven’t left any-
thing yet,” Mr Cook said.
Tuesday 6 September 2016 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
Oil price rise bolsters energy and FTSE 100 index
Change on day 0.22%

helps keep equities mostly upbeat

Between two developed economy
“commodity currencies”, the dollar
from Down Under may outperform its
North American peer in the next
several days.
That’s the message from RBC
Capital Markets, whose forex “Trade of
the Week” is to go long the Australian
dollar (AUD) versus its Canadian
namesake (CAD).
RBC reckons that the AUD/CAD
pairing tends to be neutral when it
comes to the broader market’s risk
appetite, probably because both
currencies are lumped together as
commodity/growth sensitive.
It means that the cross is more likely
to be moved by perceptions of
differing monetary trajectory. In other
words, relative yield is more of a driver.
“This week brings central bank
policy announcements in both Canada
and Australia”, says RBC in a note to
clients published yesterday.
“In Canada, the forward [interest]
rate curve is almost entirely flat, so the
risks around the Bank of Canada’s
short statement are asymmetric to the
downside.
“The greatest risk here is that in
acknowledging the persistent
disappointment on non-oil exports, the
BoC calls into question the rebalancing
it has long expected, putting the onus
back on easier domestic policy.”
In contrast, RBC expects little fresh
news from the RBA statement. Indeed,
remarks “are likely to be consistent
with recent evidence of diminishing
concern on AUD strength”.
RBC went long AUD/CAD at
C$0.9850 with a target of C$0.9760.
jamie.chisholm@ft.com
Canadian dollar
Against the Australian dollar (C$ per
A$)
1.00
0.95
0.90
Sep 2015 2016 Sep
Source: Thomson Reuters Datastream
Dollar remains softer after
Friday’s muted jobs data
draw back expectations
of Fed interest rate rise
later this month
FT REPORTERS
Global stock markets started the week
in a mostly positive mood and the dollar
was softer as Friday’s muted US jobs
report fuelled expectations that the
Federal Reserve might refrain from rais-
ing interest rates later this month.
The pan-European Stoxx 600 edged
up 0.1 per cent, with miners firm, but
banks lost momentum after recent
strong gains. Energy shares were helped
by Brent crude advancing 1.4 per cent to
$47.47 a barrel, adding to the previous
session’s 3 per cent bounce, after Saudi
Arabia and Russia said they would work
together to stabilise the market.
London’s FTSE 100 underperformed
with a 0.2 per cent dip as foreign cur-
rency earners were hurt by an early rise
in sterling after data showing the UK
service sector bouncing back in August.
The currency later weakened and was
up just 0.1 per cent at $1.3310.
In Japan, the Nikkei 225 Average man-
aged to shrug off a rising yen to gain 0.7
per cent. The yen was 0.5 per cent
stronger at ¥103.39. That took the
Nikkei to its best close in three months,
a positive performance mirrored across
the region.
Sentiment among equity investors is
underpinned by Wall Street’s S&P 500 —
which was shut yesterday for the Labor
Day break — having climbed in the pre-
vious session to within half a per cent of
its record close following US non-farm
payrolls data.
The US economy added 151,000 jobs
in August, undershooting expectations
for a gain of 180,000 and substantially
below the downwardly revised 271,000
Brexit’s effect on derivatives clearing: FT.com/video
FT explainer outlines what Britain’s decision to leave the EU
means for London’s role as world centre for derivatives clearing
added in July. Some analysts speculated
that the numbers made a rise in official
borrowing costs at the Federal Open
Market Committee meeting concluding
on September 21 slightly less likely.
“There is little on the calendar
between now and the September FOMC
meeting that could do much to shift the
outlook,” Michael Feroli, US economist
at JPMorgan, said. “Our reading of the
Fed reaction suggests it will again find
reasons to wait for more data at this
meeting, and push the next hike off
until December.”
The chances of a September rate rise
have fallen from 42 per cent a week ago
to 32 per cent, according to market pric-
ing tracked by Bloomberg. Similarly, the
7000
6900
6800
6700
Aug 2016 Sep
$7.7bn, according to ANZ Banking UK equities London performed worse
Group’s analysis of data from the Com- than other indices with pound strength
modity Futures Trading Commission. hitting foreign exporters, though the
The US bond market was also shut for currency later gave up some gains
Labor Day and so, with benchmark 10-
year Treasury yields becalmed at 1.61
per cent, the action in equivalent matu- Eurofirst 300 index
rity German Bunds was cautious with Change on day 0.08%
the yield easing to minus 0.048 per cent. 1380
Indeed, it was Japan’s government
bonds that grabbed the headlines. The 1360
10-year JGB yield, which only about five
weeks ago was minus 0.29 per cent, 1340
came within a fraction of zero per cent Aug 2016 Sep
as investors absorbed fresh economic
data and comments from the central European equities Stocks across the
bank. continent were slightly higher, though
Haruhiko Kuroda, the Bank of Japan shares in the region’s banks fell after
governor, said any additional monetary recent strong performance
easing could have some costs but coun-
tered that the central bank should ease
policy if benefits outweighed those neg- Nikkei 225 index
ative consequences. (’000) Change on day 0.66%
Data painted a mixed picture of 17.0
Japan’s economy with real wages rising
2 per cent year-on-year in July, while a 16.5
Daniel Leal-Olivas/PA
survey showed that the country’s serv-
ices sector contracted in August. 16.0
“Wage growth held up better than Aug 2016 Sep
expected in July, helped by faster
growth in bonus payments. But with Asian equities Bourses across the
regular earnings still expanding at a region were in an upbeat mood after
chances of rates rising 25 basis points in sluggish pace, wage growth is set to Wall Street’s solid close late on Friday,
December have slipped from 64.7 per moderate,” warned Marcel Thieliant at with Australia gaining 1.1 per cent
cent a week ago to 59 per cent. Capital Economics.
Arguing that a September rise is a Other equity markets in Asia rose.
“toss-up”, analysts at DBS said: “Friday’s Australia’s S&P/ASX 200 gained 1.1 per Hang Seng index
jobs report won’t have changed many cent and Hong Kong’s Hang Seng
(’000) Change on day 1.65%
officials’ minds even if they take some of advanced 1.7 per cent. On the Chinese 24.0
the urgency out of the picture. Non- mainland, the mood was less ebullient
farm payrolls may have ‘fallen’ to with the Shanghai Composite up 0.2 per 23.5
151,000 but the three-month average is cent and the tech-focused Shenzhen 23.0
still running at 232,000 — a strong and Composite adding 0.4 per cent. 22.5
well-above average number.” Gold, which is sensitive to interest Aug 2016 Sep
The dollar index, a measure of the US rate expectations and thus rose $11 on
currency against a basket of global Friday following the US jobs data, added Hong Kong equities The Hang Seng
peers, was 0.1 per cent weaker at 95.77. a further $2.80 to $1,328 an ounce. index rose sharply but mainland
Hedge funds reduced their net long US Reporting by Thomas Hale and Jamie Chinese indices were more muted,
dollar position last week for the fourth Chisholm in London and Peter Wells in although edging higher on the day
straight week to an eight-week low of Hong Kong

GKN Group was down 2.1 per cent to 59.7p.

London
Zoopla jumps thanks
to boosted traffic for
price-comparison site
Bryce Elder
Hopes of strong trading gave Zoopla its
biggest gain in two months yesterday.
Ahead of a September 15 investor day,
Zoopla jumped 7.8 per cent to 330p.
Barclays, which upgraded the property
website to “overweight”, said it would be
expecting upgrades to consensus
forecasts thanks to demand for Uswitch,
Zoopla’s recently acquired price-
comparison site.
A sharp fall in retail gas and electricity
prices at the start of 2016 is likely to
have boosted traffic for Uswitch, which
makes about half its revenue from
energy prices, said Barclays.
The investor day also gives Zoopla
management an opportunity to set out
the logic of its Uswitch and Property
Share price (£)
Sep 2015 2016 Sep
Source: Thomson Reuters Datastream
Indices Close
change
FTSE 100
FTSE 250
6879.42
18025.97
FTSE 350
FTSE All-Share
3808.77
3750.71
FTSE All-Share Yield 3.50
FTSE 100 Futures 6885.00
10 yr Gilt Yield 0.72
20yr Gilt All-Share Ratio 0.38
Software Group acquisitions, Barclays
continued, saying: “The market is not
pricing in synergies between the
businesses and doesn’t fully appreciate
the long-term vision the management
team has for putting it all together.”
Dollar earners led the wider market
lower, leaving the FTSE 100 down 0.2
per cent to 15.18 points to 6,879.42.
Imperial Brands faded 1.8 per cent to
£40.54 and British American Tobacco
was 1.3 per cent easier at £40.04 after
sterling hit a seven-week high.
A holiday for US markets meant UK
blue-chip volume was 40 per cent below
its recent daily average.
Royal Bank of Scotland faded 3.5 per
cent to 197.1p and Lloyds Banking
The prospect of lower-for-longer Trading Directory
320 interest rates led Deutsche Bank to
300 downgrade both RBS and Lloyds, to
280 “sell” and “hold”, respectively.
260
240 “The effects of lower interest rates for
the UK banking sector are unlikely to be
radically different to those in eurozone,”
said Deutsche. Pressure on loan pricing
Day's
will feed into profitability that banks
-15.18
9.52
will have to offset by chasing extra
volume, which risks putting even more
-6.67
-5.69
pressure on pricing, it said.
“We think RBS is most at risk in the
- near/medium term due already low
-40.50 deposit rates, likely downgrades to loan
-0.01 growth, additional restructuring
-
charges and likely lack of dividend until
2018,” Deutsche added.
GKN edged 0.3 per cent lower to 327p
after the weekend press highlighted its
£2.1bn pension deficit as a possible
poison pill to bidders.
SAIC Motor, China’s largest state-
owned carmaker, has been rumoured in
recent weeks to be weighing up a
possible takeover offer for GKN at that
would value the auto and aerospace
engineer at nearly £8bn. The Chinese
group is said to have had US advisers
working on a potential bid at around
450p a share, which has contributed to
GKN’s 30 per cent jump from June lows.
Dechra Pharmaceuticals, the
veterinary drugmaker, rallied 7.7 per
cent to £14 on full-year results that
matched expectations set by a July
trading update.

Capital markets

Benchmark Japan bond yields edge towards

positive ground as investors assess BoJ buying
ROBIN WIGGLESWORTH — NEW YORK
A sell-off in long-dated Japanese gov-
ernment debt deepened yesterday,
pushing the yield of the 30-year bench-
mark bond to the highest since March
and the yield of 10-year Japanese gov-
ernment debt back to near positive ter-
ritory again.
Japanese government bond yields have
been climbing higher since earlier this
summer when the Bank of Japan
announced it would hold a “comprehen-
sive assessment” of its extraordinarily
aggressive monetary policy conducted
since 2013.
Yields have been rising more recently
on speculation that the Japanese central
bank could pare back its purchases of
longer-dated government debt.
The 30-year Japanese bond yield
climbed for a seventh straight day yes-
terday, to a five-month high of 0.53 per
cent, up from a record low of just 0.05
per cent in early July. In price terms,
investors have lost 12.5 per cent over
that period.
The move in the 10-year Japanese
bond yield was more muted but it still
rose for a fourth day in a row yesterday,
by 1 basis point to minus 0.02 per cent
and within touching distance of trading
with a positive yield for the first time
since February.
The Bank of Japan’s governor
Haruhiko Kuroda promised to keep his
foot on the monetary policy pedal until
the central bank achieves its goal of rais-
ing inflation in the deflation-plagued
country back to the 2 per cent target.
In a speech in Tokyo, he dismissed
critics of the BoJ’s policies since he took
over the institution in 2013, said the
central bank’s policies “have contrib-
uted significantly to the positive turn-
round in Japan’s economy” and stressed
that there was no chance of reducing the
level of monetary stimulus despite the
review that will be completed by the
September 20-21 board meeting.
“It is often argued that there is a limit
to monetary easing but I do not share
such a view,” Mr Kuroda said, mention-
Trading Directory
ing a range of possible tools to stimulate
the economy further, such as even more
aggressive bond-buying, pushing
benchmark interest further into nega-
tive territory, and buying other assets
such as corporate bonds, stocks and
property funds.
“Other new ideas should not be off the
table,” he added.
However, the ongoing sell-off in long-
dated Japanese government bonds —
and the fact that the yen strengthened Trading Directory
versus the dollar in the wake of Mr Runs Daily
Kuroda’s speech — indicates that inves- .....................................................................................................................................................................................................................................................................................................................................................................................................................
tors remain sceptical of the efficacy of Classified Business Advertising
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
the BoJ’s current policies.
24 ★ Tuesday 6 September 2016

SMART MONEY Analysis. Commodities

Henny
Sender
Bumper corn crop dilutes ‘food v fuel’ debate
Supply is greatly outstripping Bushels to barrels
demand created by the US
For India, corporate government mandate
US corn price v US ethanol production
Rebased 100 = Aug 2006
bond reform would be GREGORY MEYER — NEW YORK Corn price Aug 2012:
Nov 2015:
EPA requires 14.5bn gallons of

like a good monsoon A few years ago the “food versus fuel”
debate raged in Washington. It centred
US ethanol production
Corn price hits
record amid drought
corn ethanol use in 2016

on whether the US government’s corn 300

ethanol mandate squeezed scarce grain

L
ast month, Union Bank of India became the lat- supplies and pushed up food prices.
est state-controlled lender to be downgraded to Biofuel refineries have since been Jun 2016:
Strong demand and exports 250
junk by S&P. “The pick-up in corporate per- churning out record volumes of more
formance, and the de-bottlenecking of stressed than 1m barrels a day of corn ethanol. aid ethanol production
sectors, in India is likely to be gradual, hurting The US Department of Agriculture pre-
Union Bank’s asset quality,” the rating agency noted. “The dicts that the US ethanol industry will 200
stress has pushed up the bank’s non-performing ratio.” digest 5.275bn bushels of corn this year,
Neither India’s economy nor its banks are in the greatest the most to date and 35 per cent of the Feb 2013:
shape. Growth slowed from 7.9 per cent in the first quarter domestic harvest. Ethanol output dips on corn shortfall
to 7.1 per cent in the second (and according to the — proba- Yet last week corn dropped to $3.01 a 150
bly more accurate — methodology the government used to bushel, a level not seen since lawmakers
employ, the first-quarter figure was just over 4.3 per cent). enacted the ethanol mandate in 2007. Dec 2007:
Fixed investment contracted more quickly, hardly sur- Supermarkets will raise food prices less Law mandates sharp rise in corn ethanol use
prising given that utilisation of the economy’s current than 1 per cent this year, well below the 100
capacity remains low. It is just above 70 per cent overall, historical average, says the USDA. The
while in some industrial sectors such as steel and paper the UN’s international food price index is 2006 2008 2010 2012 2014 2016
figure is as low as 50 per cent, according to data from IHS alsolowerthanin2007. FT graphic Sources: EIA; Bloomberg
Global Insight. The ethanol debate raged when corn
At the same time there had been “a near full stop in bank prices rose sharply in 2008 and again in
lending to industry”, IHS noted. Without credit, econo- 2012, seemingly in concert with biofuel
mies cannot grow. However, for many sectors there is volumes. blessed by years of beneficial weather. mental groups wants Congress to repeal the ethanol industry is somehow a key
both little demand for bank credit and little supply, Opponents of the mandate say it is
‘Ethanol Another factor is the levelling off the renewable fuel standard, for various driver of abnormal food prices, or caus-
thanks to the combination of broken bank balance sheets still distorting grain markets. “The production of the ethanol mandate. The law called reasons. For Dave Juday, consultant to ing high food prices,” he says.
and excess industrial capacity. Cost of capital, especially requirement has created a huge for raising corn ethanol use from 9bn the National Chicken Council, the con- The collapse of oil prices has had a
for bank borrowers, remains lofty — far higher than almost demand for corn, which has dramati-
has grown gallons in 2008 to a plateau at 15bn this cern is that the age of plentiful chicken double-edged effect on ethanol mar-
anywhere else in emerging Asia. cally increased its price,” says the just when year. The White House has tweaked that feed will not last. kets. US gasoline is blended to contain
But there are signs of a potential easing of the logjam. National Council of Chain Restaurants to 14.5bn gallons in 2016. (There are 42 “The bottom line is we’re only another about 10 per cent ethanol, so high
The Reserve Bank of India is introducing rules that should on its website.
we thought gallons in a barrel.) drought, freeze or flood away from demand at the pumps has lifted ethanol
reinvigorate the corporate But this time prices have declined. it would The Renewable Fuels Association, an another crisis,” he says. “While corn sales. But wholesale gasoline is cheaper
bond market, creating “less The simple reason is that the US is on ethanol lobby group, expects about prices may be low and the livestock than ethanol, curtailing consumption
dependence on banks funding
Cost of capital the doorstep of a colossal corn harvest.
be flat’ 15.2bn gallons to be produced this year industry is back to profitability, there’s beyond what is needed to meet the man-
the next leg of the investment is far higher The USDA foresees a crop totalling as the industry profits from cheap corn still a big artificial demand for corn.” date and air-quality regulations.
cycle”, says Samiran Chakra- 15.2bn bushels this autumn — the most and exports to countries such as Can- Geoff Cooper of the Renewable Fuels With tractors gearing up for the har-
borty, Citigroup’s chief econo-
than almost in history — leaving a surplus of 2.4bn ada, India and Brazil. Association acknowledges that demand vest, there will be plenty of corn to go
mist in Mumbai. “The devel- anywhere else in bushels next year. “Ethanol production has grown just from the ethanol industry supports corn around. “Extra demand from ethanol
opment of the bond market Scott Irwin, economist at the Univer- when we thought it would be flat,” says prices. But $3-a-bushel corn, ample production helps corn prices,” says
will reduce pressure on the
emerging Asia sity of Illinois, says the grain market Joseph Glauber, senior research fellow food supplies and strong ethanol pro- Bruce Babcock, economist at Iowa State
banks.” managed to absorb strong ethanol at the International Food Policy duction “should be the final nail in the university. “But the supply completely
It could be that the RBI is pushing an open door. Banks, industry demand because farmers culti- Research Institute. coffin of ‘food versus fuel’”, he says. outstripsthatdemand.”
with their need for capital to fix balance sheets, have been vated more corn acreage, corn yields A coalition of food and oil companies, “I don’t think there’s anybody who The “food versus fuel” debate is losing
reluctant to pass on any rate cuts to corporate customers. marched higher and farmlands were free-market think-tanks and environ- can argue with a straight face today that some of its venom.
It is more attractive for companies to issue debt than bow
down to their bankers.
To make sure that large companies turn to this alterna-
tive source of funds, the RBI is imposing higher capital Commodities
charges and provisions for loans to bigger borrowers. To
encourage smaller companies to access the market — and
to encourage investors to bet on them — regulators raised
the credit enhancement limit from 20 per cent of the bond
LME owner to launch
size to 50 per cent.
Foreign investors will find it easier to hedge their rupee
China trading platform
exposure — something that has in the past been a big cap
on their involvement in the local bond market.
“Previously, the challenge always was the lack of depth HENRY SANDERSON, Exchange and the Dalian
and liquidity,” says Mr Chakraborty. “The turnover was NEIL HUME AND Commodity Exchange.
LUCY HORNBY
less than $1bn a day.” Mr Li said that while
Although these measures are incremental, they should The owner of the London HKEx’s Chinese spot metals
ultimately make a difference when there is more basic Metal Exchange aims to tar- exchange was unlikely to
demand for credit. get Chinese commodity offer commodity futures
The promise for an Indian economy that has slowed traders concerned by specu- contracts it would still seek
does not end there. A significant swing factor is the mon- lative excesses on the coun- to attract banks and hedge
soon — it largely accounts for the difference between the try’s domestic bourses, with funds to the platform that
worst and best economic cases. After two disappointing plans to establish a physical wanted to trade directly in
years the rains have been generous, giving rise to lower metals trading platform in physical metals.
food prices. That should lift rural income, boosting con- mainland China next year. “We want to do everything
sumption. short of trading futures, we
Meanwhile, to the extent that there will be a re-accelera- Charles Li, chief executive of don’t believe we will get a
tion in economic growth, some of it may come from the Hong Kong Exchanges and licence for that,” he said.
government, as it ramps up spending to build desperately Clearing, which bought the “Obviously the easier thing
needed roads, upgrade decrepit railways (the average LME in 2012, said its planned to provide liquidity is to offer
speed of a freight train is 25kmh) and improve ports. exchange in Qianhai would futures contracts and allow
The government has been a big part of the problem. make sure prices remained many of the Chinese finan-
Organisations such as the National Highway Authority tied to the underlying econ- cial players to participate but
would rather dispute than pay bills for work from the big omy by underpinning it with that requires a licence and
infrastructure companies, contributing to both the physi- an LME-style warehouse sys- China today is not likely to
cal and the financial logjam. As the corruption that gave tem for the physical delivery issue a licence for someone
rise to blockages and delays eases, fiscal spending will be of metal. else to issue another futures
more effective. “This is a platform for contract.”
With inflation coming down and public spending less physical users,” he told the HKEx’s plans to establish a
wasteful, the RBI can finally move more aggressively to cut FT Commodities Asia Sum- “lookalike” warehouse sys-
rates and reduce borrowing costs. That is the proper mit in Singapore. “This is a tem come after years where
sequence of actions — a sequence from which other gov- platform for people who the LME struggled to launch
ernments and central banks could learn. trade commodities. The LME-branded warehouses in
whole idea is not another China — the world’s largest
henny.sender@ft.com financial speculation forum.” consumer of metals —
The move comes after a because of government
surge in speculative activity restrictions.
in Chinese commodity But the trading platform in
futures caused prices to Qianhai has won the backing
jump this year, raising ques- of Shenzhen local govern-
More comment and data on ft.com tions about the influence of ment, which will part own
China’s growing number of the exchange. Mr Li said he
retail speculators on global hoped to eventually connect
Y Fast FT Our global economies, headed commodity markets. the platform to the LME and
team gives you market- by Brazil, Russia, India The Shanghai steel rebar allow foreign investors to
moving news and views, and China. futures contract, a niche invest in China’s physical
24 hours a day, five days ft.com/beyondbrics product for the construction metals markets.
a week. ft.com/fastft industry, briefly became the “Very quickly we are going
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a third-most traded global to find ways to connect the
irreverent financial blog. look at what is driving commodity futures contract two warehouse systems,” he
Join Paul Murphy and the global currency in the world in April before said.
Bryce Elder for the daily market. ft.com/podcasts exchanges stepped in to raise Mr Li said the 2014 scandal
Markets Live session at transaction fees and disci- around metals stored in non-
Y Lex Video Analysis pline some members. LME warehouses in Qingdao,
11am. ft.com/alphaville
and opinion from the The launch of the platform a northern port, had opened
Y beyondbrics News and team on the hot issues is likely to bring HKEx into an opportunity for the LME
comment from more affecting companies and competition with China’s to try to expand in China due
than 40 emerging markets. ft.com/lexvideo domestic futures exchanges to the lack of trust in main-
such as the Shanghai Futures land warehouse operators.