WEDNESDAY 13 JANUARY 2016 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.

00

Martin Wolf Back to the future The new gig

The grim meaning of January’s How GE is leading the digital Decoding the Uber economy
turbulence — COMMENT, PAGE 13 industrial revolution — BIG READ, PAGE 11 SARAH O’ CONNOR, PAGE 14

Turkey blames Briefing

Isis for blast i Manufacturing sector in recession

that kills 10 Official figures for November have shown the

manufacturing sector to be in recession after weak
global demand and a strong exchange rate wiped
out progress made in the autumn. All parts of the
A tourist’s camera captures the explo- sector were hit apart from carmaking.— PAGE 4
sion yesterday in Istanbul’s historic Sul-
tanahmet district which killed 10 and i Google changes diplomatic tack
wounded 15 people. Turkish authorities The US internet group has chosen former White
blamed a Syrian suicide bomber from House economist Caroline Atkinson to lead its
Isis for the blast, which targeted a thriv- lobbying as it pursues a less confrontational stance
ing tourist area close to attractions such in its dealings with governments.— PAGE 18
as the Blue Mosque and the Aya Sofya.
The Berlin foreign ministry said at i Volkswagen emissions remedy rejected
least eight of the dead were German citi- The carmaker’s US troubles worsened as California
zens. They were killed not far from a regulators rejected its plans to deal with the
fountain memorialising the visit of the scandal, a move endorsed by the Environmental
German emperor to Istanbul in 1898. Protection Agency, the federal watchdog.
Recep Tayyip Erdogan, the Turkish
president, called for unity and said the i Yorkshire brewer blocks bridge plan
country was being targeted for its cam- The famously frugal Samuel Smith’s
paign against “terrorist” organisations brewery in Tadcaster near York has
in the region. refused to allow a temporary
Report page 6 replacement for a flood-damaged
Depo Photos/REX/Shutterstock
18th century bridge, claiming it is a
waste of taxpayers’ money.— PAGE 2

BP and Petrobras slash jobs and

i Brussels to probe Halliburton deal
Brussels has opened an in-depth probe into
Halliburton’s $26bn acquisition of Baker Hughes,
laying another obstacle in front of a deal that
already faces regulatory hurdles in the US.— PAGE 17

spending as oil falls towards $30 i Germany eyes deportation changes

Angela Merkel’s government has proposed changes
to immigration laws that would allow deportation of
minors convicted of serious crimes, as it responds to
outrage over sex attacks in Cologne.— PAGE 6

3 Savage downturn likened to 1980s slump 3 Sector braced for grim full-year results
CHRISTOPHER ADAMS
AND DAVID SHEPPARD
Oil prices tumbled to within a whisker of
$30 a barrel yesterday, extending a sav-
age new-year sell-off as BP axed thou-
sands of jobs and Brazil’s Petrobras cut
tens of billions of dollars in spending.
Signalling that it expects no let-up in a
market downturn being likened to the
slump of the 1980s, the UK-based
energy major announced 4,000 job cuts
across its exploration and production
business, including hundreds in its
hard-hit North Sea operations.
The cuts were announced as the price
of internationally traded Brent crude
fell to $30.40 a barrel, near 12-year lows,
taking its decline since the summer of
2014 to more than 70 per cent. US
benchmark WTI briefly dipped below
$30 a barrel for the first time since
December 2003.
Daniel Yergin, author of The Prize, a
history of oil, told the Financial Times:
“The supercycle in commodities is end-
ing in great pain. The big worry is what’s
really going to happen to the world
economy.”
The latest price plunge, ahead of what
will be a gloomy set of full-year oil com-
pany results, puts the industry’s biggest
companies under intense pressure to
take further action to shore up revenues
and protect dividend payouts. More
than $200bn in spending has been can-
celled or postponed amid a US supply
glut and weaker Chinese demand.
“People are slamming on the brakes.
Companies have to be prudent in
the face of what’s happening. It’s a
i Big Blue spots red flags ahead of deals
IBM has developed an algorithm which it says can
carry out due diligence, spot the biggest risks in
wrenching period,” said Mr Yergin. ‘The job losses would fall within its North Sea target companies and strip out the decisive factor in
Petrobras, the Brazilian oil company operations, including Aberdeen and the M&A deals going awry — human error.— PAGE 22
reeling from a corruption scandal as supercycle Sullom Voe terminal in Shetland. One-
well as the crude price crash, announ- is ending fifth of the workforce there would go. Datawatch
ced on Monday it was cutting its five- BP’s cuts, among employees and con-
year investment programme by 25 per in great tractors, will reduce the numbers empl-
cent. Its capital spending between 2015 oyed across its upstream business by US employment in oil
and 2019 is now due to be $98.4bn, as
pain. It’s a 17 per cent to fewer than 20,000, affect- and gas extraction
With the oil price
falling, the US oil
against $130.3bn previously. wrenching ing operations in Azerbaijan, Angola ’000 people
200
and gas extraction
sector lost about
The US Energy Information Adminis- period’ and the Gulf of Mexico. The group had
17,000 jobs —
tration said low prices would see US 84,500 employees at the end of 2014. 180 8 per cent — in
crude production fall 7 per cent this Daniel Yergin Producers in the North Sea, ranging the year from its
year, the first annual decline since 2008. Oil expert from Royal Dutch Shell and Total to 160
peak in December
US output, though, would still be more smaller players such as EnQuest and 140 2014. The fall is
than 50 per cent higher than five years Ithaca Energy, are contending with the larger than in the
ago after the shale boom boosted pro- most difficult conditions in living mem- 120 year to December
duction by an average of almost 1m b/d ory. Bank analysts are forecasting oil 2009, when the
2000 05 10 15
each year between 2011 and 2015. might drop towards $20 a barrel. sector lost nearly
Source: Thomson Reuters Datastream
Trade unionists reacted with dismay Russia slashes budget page 8 12,000 jobs
to BP’s announcement that 600 of the Bull vs bear page 34

No pressure: BoE official oversaw FCA

Doctors’ strike brings
pain to NHS and Hunt
England’s hospitals saw picket lines for
the first time since the 1970s as junior
doctors went on strike in a dispute
over a proposed new contract. Jeremy
Hunt, the health secretary, called the
action ‘wholly unnecessary’ and
appealed for fresh talks. But the BMA,
which argues the contract will pose a
threat to patient safety, said ministers
could not ‘ignore the thousands who
have made clear what they think of the
government’s plans’.
Report i PAGE 2
retreat from banking culture inquiry
EMMA DUNKLEY AND CAROLINE BINHAM
A Bank of England official oversaw the
move by the City regulator to scrap a
review into banks, it emerged yester-
day, just a day after the Financial Con-
duct Authority insisted external pres-
sure had not influenced its decision.
Megan Butler, an executive director at
the BoE’s Prudential Regulation
Authority, was a key figure overseeing
the plans to drop the FCA’s inquiry into
whether banks had changed their work-
ing culture since the financial crisis,
according to documents seen by the
Financial Times. She was parachuted in
to the City regulator at the start of Sep-
tember on secondment.
The revelation of her involvement
threatens to fuel concern that the regu-
lator came under outside influence to
drop the inquiry. John Mann, a Labour
MP on the Treasury select committee,
called for Ms Butler to appear at a spe-
cial hearing the committee is holding
next week over the review’s shelving.
Ms Butler arrived at the FCA shortly
before Martin Wheatley was forced out
of his role as chief executive; the deci-
sion to drop the inquiry was made two
weeks after his departure.
The FCA said that as Tracey McDer-
mott, the acting head, “has previously
said, the FCA decision to not continue
with the thematic review on culture was
taken by her. To suggest there has been
any PRA/BoE influence on this decision
is simply untrue.”
Since the Tories’ election victory, the
government has sought to take a less
confrontational stance towards the City,
a shift mirrored by the regulators.
The FCA’s decision to drop the review
sparked accusations that it stemmed
from pressure from the Treasury. The
FCA said on Monday it had not held
“any discussions” with the BoE, the PRA
or the Treasury “about not continuing
with the project”.
In response to a Freedom of Informa-
tion request, the FCA said it had first
informed the PRA of its decision to
shelve the inquiry on December 17.
The regulator planned its review to
focus on how the “tone from the top” of
banks was reflected in middle manage-
ment appraisals, pay and promotions,
and how concerns were raised and acted
on at retail and wholesale banks.
But in its internal paper from Septem-
ber, it proposed it should no longer be
involved in assessing how banks treated
staff who raised concerns, because those
could be better examined by bodies
such as the Banking Standards Board.
Editorial Comment page 12

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2 ★
Hunt urges return to talks after first
strike by junior doctors in 40 years
Government and BMA expected to restart negotiations amid fears over third day of action that would include emergency care
SARAH NEVILLE, MARK ODELL
AND JOHN MURRAY BROWN
JeremyHunthascalledonjuniordoctors
to resume negotiations after a day of
strikes over a planned new contract that
saw picket lines outside England’s hospi-
talsfor thefirsttimesincethe1970s.
Calling the dispute “wholly unneces-
sary”, the health secretary said: “The
right thing to do is to sit round the table
and talk to the government about how
we improve patient safety and patient
care, not these unnecessary strikes.”
The government wanted “all NHS
patients to have the confidence that
they will get the same high-quality care
every day of the week”, Mr Hunt added.
NHS trusts reported that almost
3,500 non-urgent procedures had been
postponed. Almost four in 10 of the jun-
ior doctors who were meant to be on
duty had reported for work, according
to NHS England, although it later clari-
fied that the figure included those pro-
viding urgent and emergency care,
which is exempt from the strike.
The British Medical Association,
which said it believed its members had
fully observed the action, said ministers
“cannot ignore the thousands who have
made clear what they think of the gov-
ernment’s plans”.
Johann Malawana, who heads the
BMA’s junior doctors’ committee, said
he and his colleagues deeply regretted
the disruption, but added: “This is a
fight for the long-term safety of patients
and junior doctors’ working lives.”
The biggest threat to patient care, he
said, was “the government’s insistence
on removing safeguards which prevent
junior doctors from being forced to work
dangerously long hours without breaks,
with patients facing the prospect of
being treatedbyexhausteddoctors”.
Dr Malawana suggested Mr Hunt was
seeking to blame the juniors for the
wider financial problems facing the
NHS. The health secretary, he said,
“should reflect on the 16,397 operations
cancelled in just one quarter last year.
Or what he plans to do about the £1.6bn
deficit facing NHS trusts.”
The 24-hour walkout was the first of a
rolling programme of action threatened
by the BMA, which called the strike after
balloting its 37,000 members. Two fur-
ther strikes are scheduled for January 28
and February 10, with the latter planned
as a full walkout in which even emer-
gency cover will be withdrawn. BMA
insiders indicated, however, that they
were prepared to return to the negotiat-
ing table and hoped agreement could be
reached beforethethird dayof action.
There was an apparent clash of loyal-
ties in Sandwell, in the West Midlands,
when junior doctors were called back to
work after the NHS trust declared
a “level 4” incident and cited
extremely high numbers of
patients. The BMA instruct-
ed members not to resume
duties unless NHS England
had agreed that a “major
unpredictable incident” was
taking placeforaspecifictrust.
Even so, Toby Lewis, the hospi-
tal’s chief executive, indicated
that some juniors had left
the picket lines for the
wards, saying: “The
trainee doctors that
attended exception-
ally, and those pre-
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©Copyright The Financial Times Limited 2016. All
rights reserved. Reproduction of the contents of this
Under observation
The junior doctors’ working week
Multiples of current basic salary
2.0
1.8
1.6
1.4
1.2
Proposed
change
1.0
As it
stands 11% rise in
7am basic pay
Monday
FT graphic Sources: NHS employers; FT research
Battle lines drawn
Ministers refuse to back
down from confrontation
Conservative ministers have refused to
back down in their confrontation with
junior doctors over working hours and
pay, arguing that yesterday’s strike was
a battle worth having.
They believe that despite some polls
showing widespread public support for
the doctors, patients will ultimately
back their goal of providing the same
NHS care during weekends as on
weekdays, as the party promised in its
election manifesto last year.
Labour has, meanwhile, taken the
side of the striking doctors, saying
the confrontation was entirely the
fault of the government. But some
Negotiations:
health secretary
Jeremy Hunt,
left, called
yesterday’s
action ‘wholly
unnecessary’
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FINANCIAL TIMES
NATIONAL
Extra hours at basic rate during the week
Tuesday Wednesday
Blairites fear that the party’s leader,
Jeremy Corbyn, is making a mistake.
Health is one of the few areas in
which Labour has a poll lead, whereas
the public has deeply ingrained
suspicions about the Tories’
trustworthiness with the NHS, despite
David Cameron’s promises not to cut
spending.
Jeremy Hunt, health secretary, called
on doctors to return to the negotiating
table to discuss “how to improve
patient safety” and said the
government was willing to go back to
dispute resolution service Acas “any
day” for more talks.
Mr Cameron said the strike had
damaged patient care. “We are doing
everything we can to mitigate its
effects but you can’t have a strike on
this scale in our NHS without there
being some real difficulties for patients
and potentially worse,” he said.
About 3,500 operations and
procedures were cancelled in England
as a result of the strike. Scotland, Wales
and Northern Ireland run their health
services separately and are not
affected. A spokeswoman for the prime
minister said: “Our priority is patient
High Court
Qatar’s former PM claims diplomatic immunity over lawsuit
JANE CROFT
The former prime minister of Qatar,
one of the world’s wealthiest men,
claimed yesterday that he cannot be
sued in the English High Court because
he is protected by diplomatic immu-
nity.
Sheikh Hamad bin Jassim bin Jaber al-
Thani, known as HBJ, is facing a lawsuit
brought in the High Court by Fawaz al-
Attiya, a London-born former official
spokesman for Qatar.
Mr Attiya alleges HBJ improperly
used his influence over Qatari state offi-
cials to expropriate his land and also
claims he was falsely imprisoned in
Qatari state facilities between 2009 and
2011.
HBJ and the state of Qatar deny any
wrongdoing. Lawyers for HBJ argued
that the High Court has no jurisdiction
to hear the case because diplomatic
immunity and state immunity apply.
The UK government has provided a
certificate confirming HBJ’s diplomatic
status as minister counsellor at the
Qatari embassy in London, his lawyers
said.
As a diplomatic agent, HBJ is immune
Lower ceiling to
maxim
mum rate of pay
Thursday Friday Saturday
care and a fair deal for doctors that
recognises their hard work.”
Mr Corbyn said ministers should
apologise to junior doctors, saying in a
posting on Facebook that the
government’s treatment of junior
doctors was “appalling”, adding: “No
NHS worker takes lightly the decision
to strike, but the blame must be laid at
the door of this government for the
way it has treated doctors.”
Justin Madders, the shadow health
minister, said the government “chose to
pick a fight with the very people who
keep our NHS running”. Junior doctors
had been left with “no choice but to
take this action”, he said.
But Tom Harris, a former Labour MP
and prominent Blairite, said his party
was making the wrong call by backing
the strikes given that the public liked
the idea of a seven-day NHS.
Nick Clegg, Liberal Democrat former
deputy prime minister, questioned the
government’s negotiating tactics,
telling the BBC’s Today programme:
“Something has gone wrong here and
the government needs to try to settle
this as soon as possible.”
Kate Allen and Jim Pickard
from the English court’s jurisdiction
under the Vienna Convention which
shields diplomats from court proceed-
ings in the countries where they serve,
his lawyers argue. The state of Qatar is
also covered under the State Immunity
Act, they argue in court documents.
Monica Carss-Frisk QC, representing
HBJ, told the High Court yesterday that
although it was not appropriate to
respond in detail to Mr Attiya’s allega-
tions, she wished to make it clear her cli-
ent and the state of Qatar “strongly
reject and deny these allegations”.
HBJ is a significant figure in the Mid-
dle East. He relinquished his posts of
prime minister, foreign minister and
head of the Qatar Investment Authority
in 2013 after his ally, the former Qatari
emir, abdicated in favour of his son,
Sheikh Tamim bin Hamad al-Thani.
The case will be closely watched
because the High Court rarely looks at
legal issues around diplomatic immu-
nity.
Mr Attiya is the great grandson of a
former Emir of Qatar. He claims he was
not given sufficient compensation for
his land in Qatar which was then expro-
priated by the state, according to court
Junior doctors picket
Leeds General
Infirmary yesterday
Asadour Guzelian
Current range of
extra hours payments
Saturday at
new basic pay
Sunday Monday
agreed to be there, have helped greatly
today, along with consultant colleagues,
tode-escalatethesite.”
Outside St Thomas’s hospital, close to
the Houses of Parliament, one doctor
said she was acting “with a heavy heart”.
Lauren van Lancken, an ophthalmology
registrar, added: “It feels incredibly
unnatural . . . but we really feel demor-
alised and like there is no other option.”
Junior doctors on the picket lines out-
side Homerton University hospital said
there was no risk to patients from yes-
terday’s strike or the proposed second
day of action with emergency cover in
place. “The doctors here have had sev-
eral very constructive meetings with the
management . . . to make sure no
patient care is put at risk,” said Danny
Turton, 41, a trainee anaesthetist.
But some doctors did express con-
cerns about the February 10 escalation.
“We do need to think very carefully
about the third day of strike action,”
said Lida Panagiotopoulou, 34, a senior
registrar in psychiatry at Homerton.
Anne Rainsberry, national incident
director for NHS England, apologised
for the disruption: “It’s a tough day, but
the NHS is pulling out all the stops, with
senior doctors and nurses often step-
ping in to provide cover.”
documents. He also alleges that his
criminal prosecution was later sought
by Qatar for purportedly divulging state
secrets.
Mr Attiya claims he was “forcibly
taken” from Saudi Arabia to Qatar and
was detained in Qatar between October
2009 and January 2011 which he claims
constituted “false imprisonment”
where he was held in solitary confine-
ment for months.
Mr Attiya’s lawsuit was filed last June
but no defence has yet been lodged in
the High Court because HBJ is disputing
Sheikh Hamad bin Jassim bin Jaber
al-Thani: denies any wrongdoing
Wednesday 13 January 2016
Tadcaster
Sam Smith’s
brews anger
over refusal to
allow floods
bridge scheme
ANDREW BOUNDS
NORTH OF ENGLAND CORRESPONDENT
A famously parsimonious Yorkshire
brewery is refusing to allow a tempo-
rary replacement for a bridge damaged
by recent floods, claiming it is a waste
of taxpayers’ money.
Samuel Smith’s, which has stood by the
river Wharfe in Tadcaster near York
since 1758, was outraged when part of
the 18th century bridge collapsed on
December 29, splitting the town in two.
Cars face an 11-mile diversion, while
pedestrians are using an old railway via-
duct just outside the town.
The county council has earmarked
£300,000 for a temporary footbridge
but Samuel Smith’s has refused permis-
sion to use its land.
“It seems to us a most wasteful pro-
posed public expenditure, a typical
short-term PR based sound-bite from
central and local government,” the
brewery said. It also blamed North
Yorkshire county council for allowing
the original bridge to collapse by failing
to clear branches from the river and
buddleia from its stones.
“The fault for the collapse of the 300-
year-old Grade II listed stone bridge in
Tadcaster lies squarely with NYCC. You
failed to carry out your proper duties of
maintenance.”
Sam Smith’s is as famous for watching
its pennies as its beers such as Oatmeal
Stout and Stingo, which are sold under
the white Yorkshire rose logo. The beer
in its “uncompromisingly Victorian”
pubs is among the country’s cheapest
and it banned music a decade ago to
avoid music copyright levies. The pubs
only stock own-brand drinks.
The brewery retains a team of dray
horses to deliver beer around Tadcaster
and a cooper. Much of its brewing kit is
more than 100 years old, including the
famous Yorkshire squares — slate ves-
sels in which beers ferment.
Humphrey Smith, its owner, is a
multimillionaire thanks to the com-
pany’s London property interests. It also
owns many properties in Tadcaster.
He hit the headlines in 2012 after vis-
iting the Junction Inn near Oldham and
accusing the landlords of overfilling pint
glasses, costing the business money.
The brewery said it would pay for a
surfaced footpath from the bridge to the
viaduct for pushchairs and bikes. It
would also make land available for a
wider permanent replacement road
bridge so pedestrians could use it more
easily.
It would only agree to a footbridge —
which would “not be a thing of beauty”
— if it could approve the design of the
road bridge to ensure it suited the his-
toric town, it said. The government has
pledged £3m for a replacement bridge,
which will take a year to build.
Nigel Adams, the local Conservative
MP, and government floods envoy Rob-
ert Goodwill have called on the brewery
to drop its objection.
NYCC said it had maintained the
bridge to national standards. Carl Les,
the council leader, said: “We urge the
brewery owner to reconsider and allow
the construction of the footbridge,
which is so badly needed by residents
and traders to reconnect the town.”
He said it could take legal action to
ensure the footbridge was built.
the jurisdiction of the High Court to deal
with the case.
In a detailed statement issued before
the hearing began, HBJ’s lawyers Carter
Ruck denied the allegations made in the
lawsuit. The matters related to acts on
the part of Qatar and in the majority of
instances “HBJ had little or no involve-
ment in the acts in question”.
In the statement they added that the
sheikh fiercely disputes the “extremely
serious” allegations which are “without
exception, a combination of distortion,
exaggeration and wholesale fabrica-
tion”.
Mr Attiya was “neither ‘abducted’ nor
‘tortured’ and nor was any attempt
made to abduct him; his claims to that
effect are wholly untrue”, they say.
He was held in appropriate state-run
facilities “and the suggestion that he was
subjected to some form of private
detention on the part of HBJ is a ridicu-
lous fiction”, they say.
In relation to the land dispute,
they say the land was acquired by the
Qatari state “in strict accordance with
the law”.
The case continues with Mr Attiya’s
lawyers due to argue their case today.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 3

NATIONAL

FCA. Watchdog independence Commons report

Political meddling concerns grow
Report names top BoE
official as a key ‘sponsor’ of
decision to drop bank review
CAROLINE BINHAM AND EMMA DUNKLEY
One allegation of political interference
at the UK’s financial watchdog is regret-
table. Two, in the space of two weeks, is
a cause for concern.
The Financial Conduct Authority is
still struggling to contain the fallout
from its decision to drop an inquiry into
Britain’s banks, even as it lurches
through a new year leadership crisis.
The FCA began the week by insisting,
in response to a freedom of information
request by a Liberal Democrat peer, that
its decision to shelve the bank review
was taken without any advice from the
Treasury, the Bank of England, or any
other external body.
But the Financial Times has seen an
internal FCA document that names
Megan Butler, a top BoE official, as a key
“sponsor” of the decision.
Ms Butler arrived at the FCA, on
secondment from the BoE’s Prudential
Regulation Authority, at the beginning
of September. By the end of the month,
she was one of two people who advised
to scrap the review, according to the
document. There are concerns that
since the departure of Martin Wheatley,
the former FCA chief executive who was
perceived as a scourge on bankers, the
watchdog has lost its teeth against the
City.
George Osborne’s move to dismiss Mr
Wheatley has caused a leadership crisis,
with the revelation from the chancellor
last week that the acting chief executive,
Tracey McDermott, does not want the
role full-time.
“There’s clearly politicisation,”
said John Mann, a Labour MP on
the Treasury committee. “It’s
George Osborne . . . he announced
it before anyone else knew. That’s
clearly not the right way around.
This amount of political interference
in managerial matters, it was a
shock to people.”
The main points What the internal document recommends . . .
Megan Butler, Mr Mann alleged that the FCA had
below, was also consulted Sir Hector Sants, the
seconded to former head of the watchdog who is now
the FCA in a consultant for Oliver Wyman, the
September management consultancy, over drop-
ping the banks probe.
Sir Hector recently wrote a pro bono
report commissioned by the British
Bankers’ Association on the competi-
tiveness of the City, in which he made
recommendations including stripping
the FCA of its fining power and giving it
to an independent body, and separating
further the regulator’s enforcement and
supervision teams. Mr Mann alleged
that Sir Hector’s report was “part of the
consultation process” of the FCA
around the decision to drop its review.
“They have been in consultation with
Oliver Wyman as part of this process,”
Mr Mann said, adding that Sir Hector
had “changed his tune” since leaving the
regulator. There is a reference in the
internal document to Oliver Wyman as
one of a number of external bodies that
the regulator has engaged. This, accord-
ing to people familiar with the situation,
was over the FCA’s broader, continuing
work around culture rather than the
now-defunct review specifically.
The FCA said: “Oliver Wyman were
not involved in the decision. To suggest
otherwise is nonsense.”
Mr Mann called for both Ms Butler
3 The vision We will not prescribe ‘what’
a firm’s culture should be, although we
will clarify some high-level expectations
and share our experience . . . We will also
not prescribe ‘how’ firms should
implement cultural change but we will
bring together industry stakeholders and
facilitate engagement so that firms
develop sustainable culture themselves.
3 No further ‘testing’ of firm practices
Initial discovery work for retail banks
shows that assessing whether consumer
outcomes are sufficiently influencing
appraisal and pay decisions will be
challenging.
3 No further review of staff concern
raising Whether staff feel safe to raise
concerns, and how these concerns can be
treated, can be better assessed through
anonymous surveys.
3 Not publicising ‘good’ and ‘poor’
practices Onus on industry to identify
and measure good practices.
Simon Dawson/Bloomberg
Extracts from FCA internal document
‘This amount and Sir Hector to appear as part of a
special hearing that the committee is
of political holding next week over the affair.
interference Yesterday, Sir Hector hinted he sup-
in managerial ported a review into banking. He said:
“We consider culture and its oversight
matters, it to be central to the reform of financial
was a shock services and support the engagement of
to people’ supervisors in this key issue.”
The FCA’s internal document from
John Mann, September outlines a number of key
reasons for dropping the culture review.
Labour MP According to the FCA, it was Ms
McDermott who was solely responsible
for the decision to drop the review.
Editorial Comment page 12
Lombard page 24
Ofwat takes
flak over level
of profits
GILL PLIMMER
Britain’s water regulator Ofwat has
been heavily criticised by MPs for fail-
ing to protect consumer interests and
allowing companies to make excess
profits.
The regulator had consistently overesti-
mated the cost of finance and taxation
for water companies when it set price
limits for water bills, according to a
damning report by the cross-party pub-
lic accounts committee.
As a result, Britain’s 18 privately
owned water companies had retained
excess profits of £1.2bn over the past
five years rather than passing on savings
to customers.
Meg Hillier, who chairs the commit-
tee, said: “Ofwat was set up to protect
the interests of customers, most of
whom have no choice over who supplies
their water, yet must pay bills typically
running to hundreds of pounds.
“Many householders will therefore be
appalled to learn these bills could have
been smaller had Ofwat adopted a dif-
ferent approach to setting price limits
for water companies.”
Ofwat had also failed to benchmark
the efficiency of water companies
against international water companies
or other UK-based industries, which
undertake similar activities, the MPs
said.
They called “for greater transparency
over windfall gains made by water sup-
pliers, and more effective action to see
these gains passed on to customers”.
The water regulator has already
ordered the 18 companies in England
and Wales to cut bills by 5 per cent in
real terms during the next five years.
But a National Audit Office report
last year pointed out that the reductions
were modest compared with the 40
per cent average real terms increase in
bills since the sector was privatised in
1989.
Cathryn Ross, chief executive of
Ofwat, defended the regulator’s actions
but said it would “carefully consider the
thoughts of the PAC”.

Referendum. Brexit campaign

Eurosceptics buoyed by early gains

Ministers face tougher tests
after Cameron moves to limit
their ability to speak out
KATE ALLEN
POLITICAL CORRESPONDENT
Eurosceptics believe they have won the
opening skirmishes over the referen-
dum on Britain’s membership of the EU,
but David Cameron’s move on Monday
to restrict ministers’ ability to speak out
suggests they are set to face stiffer chal-
lenges in the run-up to the ballot.
Brexit campaigners have been buoyed
by a series of victories in the past few
months, including the decision by Con-
servative Central Office not to let the
party’s resources be used by either side
in the campaign, and a commitment to
restrain civil servants’ activity under
“purdah” rules.
Senior Eurosceptics also cite a series
of news stories suggesting British busi-
nesses are relatively unconcerned about
the prospect of the UK leaving the EU.
Akio Toyoda, Toyota’s chief executive,
has become the latest business figure to
boost Eurosceptics, saying on Monday
that the company would continue to
produce cars at its Derbyshire plant if
Britain left the EU.
“The point we’ve reached is one
where the essential building blocks [for
Eurosceptics] are in place,” said Steve
Baker, a Conservative MP and founder
of the Conservatives For Britain group.
However, the prime minister’s deci-
sion to impose conditions on Euroscep-
tic ministers’ ability to speak out is a sig-
nificant setback for Brexit campaigners.
The government will take a formal
position on the referendum, and minis-
ters will be allowed to speak out against
that, but not before Mr Cameron com-
pletes his renegotiation, and not by
using parliament as a platform to do so.
Mr Cameron is expected to back the
campaign to remain but senior party
sources estimate that two-thirds of Tory
To-do list
Build up grass roots to
challenge renegotiation
1) Challenge the renegotiation
process. “When David Cameron
finishes his renegotiation we need
to show fairly quickly that this isn’t
the major change he had
promised,” Mr Stephenson said.
2) Build up the grass roots. A new
campaign group, Grassroots Out,
launched last week. The campaign
aims to mobilise voters who want
Britain to leave the EU.
3) Win big-name backing. “We’d like
to maximise the number and range
of political leaders campaigning to
leave,” Mr Baker said.
4) Argue for equal treatment.
“Everyone playing fair, that is the
most important thing,” one senior
Tory Eurosceptic MP said.
5) Push back the timescale. “All the
research we’ve seen shows that
what will persuade people is what
their friends and family think,” Mr
Stephenson said.
MPs are in favour of Britain leaving the
EU. Eurosceptic campaigners are more
cautious, saying about half of Tory MPs
and a third of the front bench are sym-
pathetic to their cause.
Despitethesetback,Mr Bakerwassan-
guine: “It is reasonable that government
resources ought not to be deployed
againstthegovernmentposition.”
Paul Stephenson, communications
director for the Vote Leave campaign,
was more hostile, calling it “an example
of how they are trying to rig the rules”
and warning Mr Cameron it would
“backfire” on him by “creating a lot of
resentment in the cabinet”.
James Cleverly, a backbench Tory MP
who recently came out in favour of
Brexit, said many of Mr Cameron’s deci-
sions came from trying to hold his party
together.
“Ultimately he wants the Conserva-
tive party in good shape so it can get on
with running the country,” he said.
Mr Cleverly pointed to Mr Cameron’s
approach to the Scottish independence
referendum as an indication of his tac-
tics over Europe: “A lot of people
thought he gave too many concessions
to the SNP but the more he can be seen
as remorselessly balanced the better the
chance he has of making the [EU] refer-
endum decision stick without acrimony
afterwards.”
Mr Cameron “is making it hard for us
to complain about the fairness of the ref-
erendum”, Mr Baker conceded, but he
insisted that “we want it to be hard for
us to complain — this is a serious deci-
sion and the public should be able to
have confidence in its conclusion”.
Comment page 13

Scotland
Sturgeon warns June vote risks little time to make EU case
MURE DICKIE — EDINBURGH
David Cameron risks leaving little time
to make the case for EU membership if
he calls the UK’s referendum on Brexit
in June, Nicola Sturgeon has warned.
The pro-Europe Scottish first minister
said Scotland’s 2014 independence ref-
erendum was an example of how opin-
ion could shift and that she was losing
confidence that voters across the UK
would back continued EU membership.
Mr Cameron is reportedly consider-
ing calling the referendum in June, after
what he hopes will be successful renego-
tiation of the terms of the UK’s EU mem-
bership at a summit in February.
“I am increasingly concerned by the
reports . . . that the EU referendum
could be held as early as June,” Ms Stur-
geon said. A June vote, just a month
after Scotland’s May parliamentary
election, would leave little time for the
public to engage, Ms Sturgeon said.
“I fear that by focusing on the narrow
issues up for renegotiation, the UK gov-
ernment is in danger of selling the pass
on the big economic and social argu-
ments for staying in the EU,” she said.
Both sides of the debate have looked
at the lessons of Scotland’s independ-
ence referendum, where voters rejected
leaving the UK by a much smaller mar-
gin than most union supporters
expected. Some analysts say the two-
year run-up to the poll helped Scotland’s
independence campaign, but the result
also showed the willingness of voters to
consider changing the constitutional
status quo. Ms Sturgeon said she
remained reasonably confident Scot-
land would vote to stay in the EU.
4 ★
Official data
Manufacturing sector hit by recession
Weak global demand and
strong exchange rate add
to fall in industrial output
CHRIS GILES — ECONOMICS EDITOR
UK manufacturers suffered a further
setback in November last year, with
weak global demand and a strong
exchange rate hitting industrial produc-
tion, cancelling out improvements ear-
lier in the autumn.
Official figures published yesterday
showed the manufacturing sector in
recession with output 0.4 per cent lower
in November than in October and 1.2
per cent lower than a year earlier.
With production on the slide, the UK
needs an acceleration in the services
sector to prevent overall growth slowing
further in the fourth quarter from the
0.4 per cent rate in the third quarter.
Data published by the British Retail
Consortium this week showed shoppers
Old age
Fears over
income in
retirement
touch all
generations
JOSEPHINE CUMBO
PENSIONS CORRESPONDENT
Nearly half of the general public doubt
that they will have enough money
saved for a comfortable retirement,
with childcare costs, rent and house-
hold bills causing worries across the
generations.
A report published today finds many
people are now expecting to work
longer to fund their retirement, but that
job insecurity and a lack of flexible roles
make this difficult to do.
The research, jointly authored by a
group of think-tanks, policy groups and
pollsters, warned that pensioner pov-
erty levels would begin to rise again if
policymakers did not intervene.
“Older workers are trapped between a
rock and a hard place,” said Julia Unwin,
chief executive of the Joseph Rowntree
Foundation, which campaigns on pov-
erty and co-authored the report.
“The high cost of bills means that
many are unable to save more for retire-
ment, while a lack of opportunity to gain
new skills or progress at work is making
it difficult to work for longer.
“Unless action is taken, these prob-
lems could continue . . . as the high cost
of housing and childcare make it diffi-
cult for those who are further away from
retirement to save.”
The research found that 46 per cent of
more than 2,000 respondents were
doubtful they would have a comfortable
retirement, because of difficulties sav-
ing for a pension.
Student debts and high rents held
back saving among the under-35s and
those who could save in this age bracket
were prioritising putting aside money
for a deposit to buy a house.
The cost of raising a family was stop-
ping those born between 1965 and 1979
from saving, the research found.
Meanwhile, baby boomers who are at,
or approaching retirement were also
found to be struggling to put money
aside because of the size of household
bills.
The government announced in
November that it was delaying two
scheduled increases to pension contri-
butions for millions of workplace savers
and in the Budget in March, the chancel-
lor George Osborne is also expected to
make an announcement on the future of
pensions tax relief.
Abolishing or lowering pensions tax
relief for higher earning pension savers
are among the options being considered
by the government.
“This research shows just how varied
the challenges of funding old age are for
people of different generations and
income,” said Nigel Keohane, research
director of the Social Market Founda-
tion, an independent think-tank and
report co-author, along with Ipsos Mori,
the pollsters.
Mr Keohane went on to point out:
“However, there are helpful steps the
government could take that the public
would support, whether this is giving a
larger chunk of pension tax relief to
those on lower incomes, or introducing
methods to automatically increase pen-
sion contributions as workers earn
more.”
More than 2,000 members of the pub-
lic aged 16 and over were surveyed for
the research, which included interviews
with people from across the genera-
tions.
moving online and keeping spending on
a tight rein, even though prices in shops
are falling.
The Office for National Statistics
reported that the index of production,
a wider measure than manufacturing,
which includes the electricity, water and
the oil and gas sectors, fell 0.7 per cent
between October and November.
Output in all production industries
was still 0.9 per cent higher than a year
earlier because the North Sea sector
increased production in 2015 in spite of
low oil prices. This happened because
there was less maintenance on rigs but
there were also concerns that oil compa-
nies were sweating assets to counter a
severe decline in cash flow.
Chris Williamson of Markit Econom-
ics said the industrial sector appeared
unlikely to contribute to economic
growth in the fourth quarter. “Produc-
ers are having to deal with a toxic com-
bination of a historically strong
exchange rate, weak global demand,
Entry charges
Museums
look at fees
to stay afloat
The National Waterfront Museum
in Swansea, top, and the City of
Birmingham Symphony
Orchestra, above — travelibUK/Alamy
Pension provider braced for deluge from rise in workplace schemes
Small groups must sign eligible
staff up for ‘auto-enrolment’
and Nest is ready, says its chief
JOSEPHINE CUMBO
PENSIONS CORRESPONDENT
With hundreds of thousands of small
businesses having to act this year to pro-
vide workplace pensions, the head of
Nest, the state-backed pension pro-
vider, insists her organisation is ready
for the deluge.
“We have a big challenge ahead of us,”
said Helen Dean, the recently appointed
chief executive of Nest — short for
National Employment Savings Trust —
in an interview with the Financial
Times. “But I don’t believe we are going
to buckle.”
Since 2012, Nest has captured 2.6m of
the 5.5m workers who have been
brought into pension saving through
“automatic enrolment” — meaning that
employers must sign eligible staff into a
FINANCIAL TIMES
NATIONAL
intensifying competition, notably from
the US and continental Europe, as well
as growing uncertainty about the out-
look at home and abroad,” he said.
Manufacturing output is 6.1 per cent
below its pre-crisis peak. Over the past
Industry suffers in November
Index: 2012 = 100
104
Index of manufacturing
102
Index of 100
production
98
2013 14 15
Source: Thomson Reuters Datastream
More than one in 10 museums intend
to introduce entry charges this year, in
research that underlines the
vulnerability of cultural organisations
to cuts in local authority funding.
Since 2010, when the government
made cuts to reduce the Budget deficit,
some 44 museums have closed.
The Museums Association, which
has monitored the impact of cuts on its
members, found museums are
continuing to reduce the services they
offer five years after the cuts began.
Nearly one-fifth had closed a part of
their museum in the past year or said
they would do so in the year to come.
Nearly a quarter have cut staff in the
past year and almost half saw their
income fall in 2015.
York Art Gallery and Brighton
Museums were among the 8 per cent in
the survey that charged for entry last
year; another 12 per cent plan to do so.
Sharon Heal, association director,
said the latest results gave particular
concern in the English regions and
devolved nations. “Museums that serve
local communities deliver real public
pension scheme and contribute to it.
Nest is preparing for that figure to swell
to 3.5m as a government drive to boost
retirement saving enters a new phase.
From this month, automatic enrol-
ment will affect millions of small and
medium-sized employers, including
families hiring nannies, cleaners and
carers. Yet according to research by the
Federation of Small Businesses, almost
half of the UK’s small employers are
hazy on what they will have to do to
meet their new obligations, including
deadlines and costs.
Last week, the Pensions Regulator
said it was concerned that a minority of
smaller employers was leaving it too late
to comply with auto-enrolment.
Nest, a not-for-profit provider, was set
up by the government to take on the
business that private providers turn
away, such as managing the savings of
low-income savers, which tends to be
less profitable.
Ms Dean admitted she was uncer-
tain how much of the new business
would land at Nest’s door but added
year, almost every part of the manufac-
turing sector suffered declining produc-
tion.
Machinery and equipment was hard-
est hit, with output down 13.7 per cent
over the year, contributing the bulk of
the decline in overall manufacturing
output. Part of this decline is related to
low oil prices reducing demand for
equipment in the extraction industries.
The high value of sterling has also hit
export demand.
The important exception is motor
vehicle manufacturing, which
increased 6.4 per cent over the past year,
highlighting the success of British car
plants both internationally and domes-
tically. Improved consumer confidence,
low fuel prices and easy credit borrow-
ing have driven remarkable growth in
UK car sales.
Samuel Tombs of Pantheon Macro-
economics said the overall drop in
industrial production was partly
because energy supply had been
benefit and there is a danger that whole
areas of the country will have these
services wiped out if the cuts continue.”
A few institutions such as the British
Museum, Tate and the Science Museum
are directly funded by the Department
for Culture, Media and Sport, while Arts
Council England funds give grants to
hundreds more. Most expressed relief
after the Autumn Statement, when
chancellor George Osborne left their
funding broadly intact.
But the majority of more than 2,500
museums and galleries rely on local
authority money, self-generated income
or sponsorship. Councils are facing a 6.7
per cent cut in their government grant
in real terms over the next four years.
Lancashire county council proposes
introducing charging at five museums
and the closure of a further five —
equating to a 92 per cent cut in its
museum budget, the association said.
Kirklees Council, which runs five
museums and two art galleries, is
proposing to shut three.
Birmingham city council has also
planned cuts to its arts budget after
Interview. Helen Dean
Court
ruling
Liner company in hot
water over obligations
The Pensions Regulator has won a
legal victory against an employer that
argued it was not obliged to meet a
new pension duty for staff because
they worked on cruise ships.
Fleet Maritime Services, a Bermuda-
based employer, had argued that
many of its UK staff were not covered
by automatic enrolment, as they
worked in international waters and
could not be said to “ordinarily work in
the UK”.
However, the High Court yesterday
said it agreed with the regulator’s
position that the workers were covered
by automatic enrolment.
Josephine Cumbo
affected by unseasonably warm
weather, but the figures were nonethe-
less disappointing.
Although Britain is not reliant on
industrial production, Mr Tombs said it
was unlikely to contribute to economic
growth in the fourth quarter and it was
hard to see which parts of the economy
would provide significant growth.
“Industry accounts for only 15 per
cent of gross domestic product, but with
services output increasing by just 0.1
per cent month to month in October and
the construction recovery stalling, it’s
now likely that the economic recovery
slowed even further in the fourth quar-
ter,” Mr Tombs said.
Bucking the trend of economists
revising down their economic forecasts
for the final quarter, the National
Institute of Economic and Social
Research estimated the economy grew
0.6 per cent in the final quarter of 2015.
The official figure will be published on
January 28.
reductions in grant funding, hitting
its symphony orchestra, theatres
and museums. Ikon Gallery, a
contemporary arts body in the city,
is facing a 29 per cent drop in the
latest cuts, leaving it with a council
grant of £60,000 a year compared
with £100,000 two years ago.
Jonathan Watkins, Ikon director,
said staff had already been cut.
“We’ve reduced our learning activity
as a result. That’s outreach work
with communities that has relevance
to Birmingham. This is going to be
the story across the country.”
More government subsidy should
go outside London, he said, to
redress the advantage cultural
organisations in the capital have.
“The big philanthropists, non-
doms and hedge fund managers who
make donations; they live in London,
not Birmingham or Nottingham.”
The survey also raised fears that
museums will try to sell items. Some
11 per cent said they were looking at
“financially motivated disposals” in
the coming year. James Pickford
that the provider was “putting in
place capacity for up to 3.5m mem-
bers” early this year, saying Nest was
aiming to “ensure we are resilient
against fairly extreme scenarios”.
She has been chief executive of
Nest for three months, having taken
over from Tim Jones, a former retail
banking executive who was awarded
a CBE for services to pensions in the
New Year honours. Her tenure comes
as auto-enrolment steps up a gear.
Over the next year, the duty will be
extended to nearly half a million
small businesses, as well as parents
with nannies and other home help,
who will need to choose a pension
for their staff.
Ms Dean, who has worked on pen-
sions policy for nearly two decades as
a civil servant, said that one in three
employers who had already come to
Nest had been turned away by a pri-
vate provider. “There is a clear role
for us,” she said. “There are many
employers who are passionate about
giving their employees access to a
Wednesday 13 January 2016
Native advertising
BuzzFeed
criticised for
misleading
readers
ROBERT COOKSON
The advertising watchdog has ruled
that BuzzFeed, the fast-growing US
media group, misled its readers by
showing them paid advertisements
that looked like news stories.
The ruling is part of a crackdown on
“native advertising” and comes two
weeks after the regulator ordered the
Daily Telegraph to stop running “adver-
torials” that were not “obviously identi-
fiable as marketing communications”.
BuzzFeed, which last year raised
funds at a reported valuation of $1.5bn,
specialises in creating bespoke
“branded content” for advertisers keen
to reach its young audience. In doing so,
the company and its many imitators
have blurred the lines between advertis-
ing and editorial content.
The Advertising Standards Authority
ruled yesterday that an advertorial on
BuzzFeed’s website, headed “14 Laun-
dry Fails We’ve All Experienced”, was in
breach of its code and must not appear
again in its original form.
The ad, promoting a product called
Dylon Colour Catcher, was styled as an
ordinary BuzzFeed article and featured
a list of photos of laundry “fails”.
BuzzFeed said in its defence that the
Dylon logo and the text “Dylon Brand
Publisher” appeared at the top of the
web page and at the bottom of the
advertorial, text stated: “It’s at times
like these we are thankful that Dylon
Colour Catcher is there to save us from
ourselves. You lose, little red sock!”
But the ASA ruled that the references
to Dylon were not sufficient to make
clear to readers that the web page was
under the control of the advertiser. The
regulator did not specify what would be
sufficiently clear, although its guidelines
say it would accept prominently-posi-
tioned labels such as “advertisement
feature”.
The UK ruling against BuzzFeed
comes as US regulators also crack down
on “deceptively formatted advertising”.
Last month, the Federal Trade Com-
mission issued new guidelines for mar-
keters and online publishers, including
the requirement that “disclosures
should be in plain language that is as
straightforward as possible”.
“Native advertising” has become one
of the fastest-growing sources of reve-
nue for the news industry. Although the
advertorial has existed in print for
many decades, in recent years publish-
ers have reinvented the concept for the
digital age.
Mail Online, The Guardian and The
New York Times are among the newspa-
per groups that have set up divisions to
create sponsored content for advertis-
ers including Goldman Sachs and Netf-
lix.
Many brands have jumped at the
chance to communicate their commer-
cial messages in the style and language
of a popular and trusted news publisher.
Publishers label native ads in many
ways, some more subtle than others.
Commonly-used labels include “spon-
sored”, “promoted”, “brought to you
by” and “in association with”.
Brinsley Dresden, head of advertising
at the law firm Lewis Silkin, said that
BuzzFeed was more transparent than
many other media companies in the
way that it labelled native ads. The
“average consumer with a bit of com-
mon sense and intelligence” would
understand that the BuzzFeed adverto-
rials were marketing communication.
pension, who have been trying for
years to get a provider to take them
on and they couldn’t.”
The Nest pension scheme, which is
run by a non-departmental public body,
is free for employers to use, with no
charges to set up. Individual savers pay
an annual management charge of 0.3
per cent on the total value of their fund
each year and a contribution charge of
1.8 per cent on each new payment into
their pot.
Since Nest began to take on business
four years ago, charges have come down
across the market but Nest fees have not
moved. Does Ms Dean still think Nest is
competitive? “Our charges are fair and
proportionate,” she replies. “Clearly
some people charge less than us but that
is not really our role . . . charges are set
by the work and pensions department.”
Nonetheless, Nest needs the income
from fees to repay a taxpayer loan that
facilitated its start-up. At the end of the
last financial year, the total amount
drawn down by Nest under the loan deal
was £387m.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Wednesday 13 January 2016

INTERNATIONAL

Germany Asylum seekers

Merkel cracks down on migrant criminals Denmark

Move would allow judges
to deport more foreigners
guilty of serious offences
STEFAN WAGSTYL — BERLIN
Angela Merkel’s government has pro-
posed sweeping changes to Germany’s
laws on immigrants that would allow
the country to deport minors convicted
of serious crimes.
The proposal is part of a tough legal
package Berlin has hastily put together
in response to public outrage over sex
attacks in Cologne on New Year’s eve
and widespread concern that asylum
seekers from north Africa and the Mid-
dle East are among those responsible.
The number of women alleging they
were molested or robbed in the assaults
has risen to more than 550.
Ahead of an emergency Bundestag
Turkey attack
debate scheduled for today on the
Cologne attacks, Ms Merkel vowed that
the new rules would be passed “as soon
as possible”.
The proposals would increase judges’
powers to deport foreign citizens con-
victed of serious crimes such as sex
assaults. At present the courts can only
order deportations when criminals are
given custodial sentences of at least
three years. The legal changes would
allow deportations to go ahead for peo-
ple given suspended sentences or jail-
terms as short as one year, as well as for
offenders aged under 18.
Ms Merkel faces intense political
pressure over the Cologne attacks, nota-
bly from her own CDU party and its sis-
ter, the Bavaria-based CSU, whose
leader Horst Seehofer is the leading
critic of Ms Merkel’s liberal approach to
refugees. A sceptical CDU MP said:
“Cologne has made the atmosphere
more tense because things have become
more urgent.”
The rightwing Alternative für Deut-
schland has also jumped on the Cologne
attacks to lambast what it depicts as the
failure of the chancellor’s refugee policy
‘Cologne has made the
atmosphere more tense
because things have
become more urgent’
— and demanded her resignation. While
Muslim groups have raised fears of rac-
ist attacks, anti-immigration populists
have taken to the streets, most recently
yesterday in Leipzig — a demonstration
followed by a brief violent rampage by
rightwing extremists.
The crackdown on migrant criminals
has widespread support even from the
far-left Linke, which normally opposes
most proposals from Ms Merkel’s ruling
conservative-social democrat coalition.
Using language more common on the
political right, Sahra Wagenknecht,
Linke’s co-leader, said this week: “Those
who abuse the right of hospitality, lose
the right to hospitality.”
But many lawyers warn the plan may
have little practical impact since Ger-
man courts can deport people to a lim-
ited range of states and only if the home
government agrees and the convicted
person has travel documents. Referring
to such constraints, Hannelore Kraft,
premier of North Rhine-Westphalia,
which includes Cologne, said: “ These
are all things that we must change.”
In a further bid to boost public secu-
rity, German police are reinforcing
patrols in public places while politicians
debate plans to recruit more officers
and reverse longstanding budget cuts.
But the real argument is over refugee
policy. Mr Seehofer of the CSU has
repeatedly urged Germany to impose
tougher border controls and to take in
no more than 200,000 refugees a year
rather than the 1.1m asylum seekers
who arrived last year.
Ms Merkel has so far argued the prob-
lem can only be solved at the EU level,
through redistributing refugees inside
the bloc, tighter external EU frontier
controls and a deal with Turkey to
reduce inflows from the Middle East.
But time appears short for such solu-
tions to bear fruit, with about 2,500 ref-
ugees still arriving daily at the Bavarian
border despite the winter weather. “The
citizens rightly expect more protec-
tion,” Gerd Lansberg, the chief of the
German cities and communities union,
a local authorities’ body, said this week.
“They have lost trust in the state and its
representatives.”
set to agree
modified plan
to confiscate
refugee cash
RICHARD MILNE
NORDIC CORRESPONDENT
Denmark’s government has gained
parliamentary backing for a law to
confiscate the jewellery and cash from
asylum seekers that has been dubbed
xenophobic after making several con-
cessions.
Initially, the law to curb immigration
proposed stripping asylum seekers of
any valuables with the exception of
items of “special personal significance”
under a “sufficient value”, but last week
it was amended so that wedding rings
and other sentimental items could only
be taken if they were worth more than
DKr10,000 ($1,452).
However, after a storm of criticism,
five Danish political parties — enough

Suicide bomber brings carnage to Istanbul tourist district
MEHUL SRIVASTAVA — ISTANBUL
Turkey blamed a Syrian suicide
bomber from Isis for a large explosion
that killed 10 including at least eight
German tourists in Istanbul’s historic
Sultanahmet district yesterday.
The blast occurred at 10.15am in Sultan-
ahmet, a thriving tourist area close to
attractions such as the Blue Mosque and
the Aya Sofya.
Ahmet Davutoglu, the prime minis-
ter, said the attacker belonged to Isis
and that the dead and wounded were
foreigners. “We know that he [the
bomber] is a foreign citizen and a Daesh
member,” he said, using the Arabic acro-
nym for the jihadi group.
Recep Tayyip Erdogan, Turkey’s pres-
ident, said the country was being tar-
geted for its campaign against “terror-
ist” organisations in the region. “This
incident once again has shown us that
we have to stay united against terror-
ism,” he said in televised remarks.
The German government said at least
eight of the dead and many of the 15
people injured were Germans. The
explosion took place not far from a
fountain memorialising the visit of the
German emperor to Istanbul in 1898.
Angela Merkel, Germany’s chancel-
lor, said international terrorism “once
again shows us its brutal and inhuman
face”.
Frank-Walter Steinmeier, Germany’s
foreign minister, struck a similar tone,
describing the act as a “barbaric, cow-
ardly act of terror” and lamenting that it
had targeted the heart of Istanbul,
which “we all value for its openness to
the world”.
The bombing is the third major ter-
rorist incident in Turkey since July, and
heightens concerns about security as
Mr Erdogan confronts the spiralling
effects of the civil war in neighbouring
Syria as well as violence in the largely
Kurdish south-east of Turkey.
In July and October 2015 at least 130
people were killed in separate bombings
in Suruc and Ankara, the capital. Ahead
of the attacks, Turkish newspapers had
repeatedly warned of the presence of a
terrorist cell inspired and trained by
Isis. In the Ankara bombing, the alleged
perpetrators had been named in the
newspapers and by their parents as
potential security risks.
Turkish police cordon off Istanbul’s
Blue Mosque area after yesterday’s
deadly explosion in Sultanahmet
Square — Ozan Kose/AFP/Getty
I S TA N B U L
Sultanahmet Square
Blue Mosque
500m
The bombing raises questions about
the capabilities of Turkey’s vast surveil-
lance and intelligence networks in pre-
venting attacks.
Germany’s foreign office updated its
travel guidance for visitors to Turkey,
“urgently” warning them to avoid
crowds of people in public places and at
tourist attractions in Istanbul.
T U R KE Y If it is confirmed that the bomber was
a Syrian, the attacks could become a
domestic political issue in Germany,
where Syrians have entered the country
in large numbers as refugees. Sexual
assaults on women in Cologne on New
Topkapi Palace
Year’s Eve, allegedly committed mainly
Aya Sofya
by asylum seekers, have caused outrage
in Germany and increased criticism of
Ms Merkel’s refugee policy.
Yesterday’s attack could also compli-
cate the chancellor’s efforts to secure a
Source: OpenStreetmap contributors
wide-ranging deal with Turkey on her
top priority: limiting the inflow of refu-
gees from the Middle East into Europe.
In late December Turkey arrested a
handful of young militants it said were
planning attacks on or around New
Year’s Eve. “It fits a pattern of younger
people, skewing below the age of 30,
who are transiting through Turkey from
Syria,” said Aaron Stein, a fellow at the
Atlantic Council, who has studied the
terror networks behind the two previ-
ous attacks. What does link some of
these bombers who were apprehended
earlier, and the group that carried out
the Ankara and Suruc bombings, is the
connection to Syria.”
After yesterday’s blast, the semi-offi-
cial Anadolu news agency said 16 people
had been arrested in and around
Ankara for gathering intelligence for
terror attacks.
In the past month Turkish military
and intelligence resources have been
focused on large-scale military opera-
tions in the south-east, where Kurdish
militants have occupied neighbour-
hoods in three cities. At the same time,
an offshoot of the Kurdish separatist
movement has taken responsibility for
an attack on December 23, probably
using a mortar, on Istanbul’s Sabiha
Gokcen airport, that killed one person.
That group has said it would step up
attacks in Turkey.
“Ankara’s response, however, will be
limited,” said Naz Masraff, at the Eura-
sia Group. “It is unlikely that the attack
will shift the Turkish government’s pri-
orities away from its current offensive
against the Kurdistan Workers’ party,
with Isis remaining as a secondary pri-
ority.”
Additional reporting by Stefan Wagstyl in
Berlin and James Shotter in Frankfurt
for a majority when the law is debated
today in parliament — have agreed that
asylum seekers can keep all sentimental
items such as family portraits and wed-
ding and engagement rings. They will
also be able to keep up to DKr10,000 in
cash, up from DKr3,000.
The UN refugee agency had written
about the proposed law, which contains
several restrictions on the right to asy-
lum: “The signal Denmark’s introduc-
tion of restrictions sends to other coun-
tries in the world . . . is worrisome and
could fuel fear, xenophobia and similar
restrictions that would reduce, rather
thanexpand,theasylumspaceglobally.”
Denmark has been under fire for some
time over a progressive tightening of
conditionsforasylumseekersandimmi-
grants. The new government owes its
parliamentary majority to the anti-im-
migration Danish People’s party, which
has pushed for measures such as adverts
in Middle Eastern newspapers warning
againstcomingtoDenmark.
Denmark is geographically between
Germany and Sweden, perhaps the two
most pro-immigration EU countries
until recently. The minority government
has been trying to curb asylum numbers
sincecomingtopowerlastsummer.
Lars Lokke Rasmussen, Denmark’s
prime minister, stoked debate at Christ-
mas when he said the 1951 Refugee Con-
vention might need revising. “If this
[influx of migrants] continues or gets
worse . . . we will get to the point where
we’ll have to talk, and Denmark won’t
be able to do it alone, about changing the
rules of the game,” he told Danish TV.
Mr Rasmussen also sought to defend
the plan to strip asylum seekers of valu-
ables, saying that many foreigners do
not grasp how generous the Danish wel-
fare state is. “It is in that context you
should understand that we in Denmark
say before you get these benefits, you
must — if you have a fortune — pay for
yourself,” the prime minister said.
With some accusing the government
of measures reminiscent of Nazi Ger-
many, one Danish newspaper ran a quiz
asking readers to guess how valuable
certain rings were. Among the criticised
moves in the law is that asylum seekers
could not apply to have their family join
them for up to three years, instead of the
alreadydebatedoneyearascurrently.
Denmark has also clashed with Swe-
den: last week Mr Rasmussen criticised
Stockholm’s introduction of identity
checks on trains and boats from Den-
mark. Denmark has since begun spot
checksontheGermanborder.

House of Representatives
Subscribe to FT Weekend today
Congress picks fight on Iran sanctions days before nuclear deal
GEOFF DYER — WASHINGTON
The Obama administration is facing a
new fight with Congress over Iran sanc-
tions just days before the nuclear
agreement signed last year is due to go
into effect.
The House of Representatives will vote
today on a bill that would prevent the
administration from lifting sanctions
under the nuclear deal for any Iranian
bank with known ties to terrorist groups
or the country’s ballistic missile pro-
Read beyond the expected gramme.
The White House has threatened to
FT Weekend brings art and culture to life through intelligent veto the bill, arguing that it would scup-
and thought-provoking writing. Our editors bring the best of per the nuclear agreement with Iran,
the world to you – from news and interviews, to extensive and Democratic leaders in Congress
coverage of property, gardens, books, style, travel and arts. have said they will also vote against the
Together with the award-winning How to Spend It magazine,
proposed legislation.
However, leading Democrats have
there is something to delight all readers.
also publicly criticised the White House
Subscribe now and save 23% at for not doing more to counter Iran over
ft.com/weekendsub recent tests of ballistic missiles and
some have proposed their own sanc-
tions legislation which they say would
put pressure on Iran while staying
within the bounds of the agreement.
Signed in July, the nuclear deal offers
sanctions relief in return for significant
limitations on Iran’s nuclear pro-
gramme. President Barack Obama was
expected to highlight the agreement as
one of his central accomplishments in
his final State of the Union address yes-
terday.
“It is paramount for Obama to protect
the Iran nuclear deal . . . which the
administration considers its crowning
foreign policy achievement,” said Karim
Sadjadpour at the Carnegie Endowment
in Washington. “They will do everything
they can to refrain from penalising Iran
or sanctioning Iran and doing things
that could trigger an Iranian response
that would lead to the unravelling of the
nuclear deal.”
Although Congress did not block the
Iran nuclear agreement last year, the
issue generated a fierce debate and
there were majorities in both chambers
opposed to the deal, including a sizeable
number of Democrats.
The latest flare-up has been
prompted by two ballistic missile tests
that Iran conducted last year, which
breach previous UN Security Council
resolutions on Iran but are not directly
blocked by the nuclear agreement.
The White House said it would
impose sanctions on a group of Iranian
companies and individuals connected
to the ballistic missile programme.
However, it has not announced any new
designations amid some concerns that it
could generate a backlash in Tehran.
Chris Coons, Democratic senator
from Delaware, urged the administra-
tion on Monday to follow through with
the threat to add new names to the sanc-
tions list. “I am concerned with the hesi-
tation to move forward,” he said.
The administration said that the
House bill to be voted on today, which is
Bill would prevent lifting sanctions
from banks with terror group ties
supported by Republicans, would “col-
lapse” the nuclear deal with Iran, would
“deal a devastating blow to America’s
credibility as a leader of international
diplomacy” and would jeopardise “the
hard work of sustaining a unified coali-
tion to combat Iran’s destabilising activ-
ities in the region”.
Eliot Engel, the leading Democrat in
the House foreign affairs committee
who opposed the nuclear agreement
with Iran, said he was against the new
Iran sanctions legislation. However, he
urged Republican members to work
with him to create a “bipartisan bill”
that would “hold Iran’s feet to the
fire . . . and help our ally Israel”.
US, European and Iranian officials
have all said that the nuclear agreement
could be implemented within “days” —
once the International Atomic Energy
Agency in Vienna has verified that Iran
has abided by the limitations on its
nuclear programme set out in the deal.
A senior Iranian official was quoted yes-
terday as saying the government had
not yet decommissioned the Arak heavy
water reactor — one of the conditions
under the deal — but that the necessary
work would be completed shortly.
Wednesday 13 January 2016
Drug baron’s lair offers clues to life on run
Hair dye, ‘narco’ soap DVDs, a rosary and erectile dysfunction tablets in Guzmán’s Mexico safe house
JUDE WEBBER — LOS MOCHIS
On a nondescript residential street in
north-west Mexico, lined with palm
trees, a few shops and a taco restaurant,
nothing seems unusual about the white
house on the corner — except for the
armed marines outside and a cordon
around it reading “danger”.
A dark bloodstain lies around the
metal front door, while the inside is
strewn with clothes, food, debris and
bullet-holes from a 50-minute shootout
between marines and the guards of
Joaquín “El Chapo” Guzmán, the most
wanted drug lord.
This is the last hiding place of the man
credited with smuggling half of all the
illicit drugs entering the US before he
fled through a tunnel concealed behind
a mirror, crawled through city storm
drains and tried to get away in a stolen
car on January 8.
But security forces caught up with the
Sinaloa cartel boss, ending six months
on the run that included a meeting in a
jungle hide-out with Sean Penn, the Hol-
lywood actor. The drug lord had been at
large since his spectacular escape in July
from a top-security prison using a tun-
nel under the shower in his cell.
The house in Los Mochis, in the state
of Sinaloa, offers a tantalising glimpse
into Guzmán’s lifestyle, from the tube of
chestnut black Just for Men Ultra hair
dye and Calvin Klein briefs on a sofa in
what was believed to be his bedroom, to
a stack of DVDs of The Queen of the South,
a “narco” soap opera, in another room.
The TV series starred Kate del Castillo,
the Mexican actress who had been cor-
responding with the drug lord while he
was in prison and who brokered Mr
Penn’s meeting. Guzmán had wanted
her to help him film a biopic of his life —
a vanity that may have been his undo-
ing. Mexican officials say contacts about
his planned film helped them track him
down as security forces closed in.
Among the objects strewn around the
house are a packet of Python X, a sup-
plement sold as an aid for erectile dys-
function, candy wrappers and soda
cans. In the kitchen, a green rosary lies
500 km
among food leftovers and lollipops.
★ FINANCIAL TIMES
INTERNATIONAL
Boxes for smartphones and bedding are
jumbled on the floor. Remains of meals
in styrofoam trays stand stacked on a
counter. A box of carrots and peppers
sits under the sink. The fridge has been
flung around, its door ripped off and
US
eggs, milk and vegetables mixed up
inside. Packets of corn flour to make tor-
tillas are in a cupboard.
Los Mochis Bullets flew thick and fast when the
SINALOA marines stormed the house early on
Gulf of Friday morning. María Gámez, 70, who
MEXICO Mexico
lives across from the house in a side
street, was woken by gunfire. “We didn’t
Mexico City know what it was all about,” she said.
“We didn’t even look out.”
The house walls are peppered with
Get ‘Shorty’:
Mexican
marines raid the
safe house in Los
Mochis, left; the
kitchen, above;
and Guzmán
following his
capture
EPA; Edgard Garrido/Reuters;
AFP/Plaza de Armas
bullet marks, the mirrors and door of a
microwave oven are shattered and the
top of the Nescafé jar has been smashed.
Five people believed to be Guzmán’s
accomplices were killed and six were
arrested during the operation, including
a woman who was his personal cook. On
a terrace upstairs, washing hangs on a
line and a ladder leans against a wall.
In his efforts to escape the marines, he
went underground. Guzmán pioneered
the use of tunnels to smuggle drugs into
the US, and sure enough this house had
a subterranean escape route.
Behind the mirrors in the walk-in
closet, a door opens to a short metal
staircase leading to a tunnel. The
entrance, lined with rough wood, is
probably just high enough for the drug
lord to stand in, a physical hint to his
nickname — “Shorty”.
The drains that lie ahead, however,
are far smaller, meaning Guzmán and
his security chief, who fled with him,
would have had to crawl. Over 1km
away, they would have popped up out of
a manhole near a busy intersection.
Guzmán is back in the prison from
which he escaped, although security has
been stepped up. Barring another
escape, his next move could be to follow
his drug shipments north if, as
expected, he is extradited to the US.
Editorial Comment page 12
7
Defence pact
Philippines
court ruling
allows US
military access
DEMETRI SEVASTOPULO AND
GEOFF DYER — WASHINGTON
The Philippines Supreme Court has
backed a defence pact that will allow
the US to base ships and aircraft in the
country as part of a strategy to counter
increasingly assertive Chinese behav-
iour in the South China Sea.
Washington and Manila signed a 10-
year “Enhanced Defence Co-operation
Agreement” in 2014 as President
Barack Obama made his first visit to the
Southeast Asian nation. But Manila had
been prevented from implementing the
deal due to a legal challenge which
argued that the pact infringed the
nation’s sovereignty.
The Philippines Supreme Court ruled
10-4 yesterday that the agreement did
not violate the country’s constitution.
The pact provides the Pentagon with
access to military facilities in the Philip-
pines that the US has not had since it had
to close its military base there in 1991.
US troops and military assets will be
deployed on a rotational basis — under a
similar arrangement to the one it is
operating in Australia — to avoid con-
cerns about a permanent presence that
would further complicate Manila’s tense
relations with Beijing.
Opponents of the deal in the Philip-
pines had argued that it had been delib-
erately designed to circumvent the need
for approval from lawmakers and as
such made a mockery of the 1991 Philip-
pines Senate vote that evicted US forces.
Supporters claimed it was essential to
boost its military capabilities as it faces a
greater maritime challenge from Chi-
nese military and coastguard ships.
“Both the US and the Philippines rec-
ognise the importance of EDCA as a
security component, [an] important
one, in our treaty alliance. We therefore
welcome the Supreme Court decision
that EDCA is constitutional and that it is
an executive agreement,” said Albert del
Rosario, the Philippine foreign minister.
8 ★ FINANCIAL TIMES Wednesday 13 January 2016

INTERNATIONAL

Expenditure IMF

Russia to slash budget after oil price fall Emerging

Investment to be scaled
back in nation heavily
reliant on crude exports
KATHRIN HILLE — MOSCOW
Russia is slashing budget expenditure
by 10 per cent as it moves to cope with
lower revenues following the latest
drastic drop in oil prices.
Ministries and other government
departments have until Friday to for-
mulate plans for cuts that must total
Rbs700bn ($9bn), according to three
cabinet officials.
The amendments mark the second
straight year that sliding crude prices
have forced Russia to redraft its budget,
underscoring the country’s dependency
on commodity exports to keep its econ-
omy afloat.
The government decided on the
10 per cent cuts at a meeting called by
Prime Minister Dmitry Medvedev at the
end of December when Brent crude sold
for $37 a barrel.
Since then, prices have fallen another
20 per cent, hitting $30.43, the lowest
since April 2004, on Monday before
recovering.
Despite long-running pledges by the
government to diversify the economy,
oil revenues continue to account for
more than half of Russian budget reve-
nues. The current budget for 2016 is
laid out for a 3 per cent deficit based on
the assumption of an average crude
price of $50.
Under that budget, adopted by parlia-
ment a month ago, federal budget
expenditures are to rise to Rbs15.8tn
from Rbs15.5tn last year.
In mid-December, President Vladimir
India. Economic growth
Putin warned that the budget calcula-
tion had been based on an optimistic
assessment and the government would
“probably be forced to correct some-
thing”.
The cuts, to be proposed by January
Vladimir Putin: warned last month
of possible spending rethink
15, will not affect areas such as pensions
and salaries for civil servants and
soldiers, according to the protocol of the
December meeting. The main target
areas would be state investment pro-
grammes and administrative expenses,
two of the officials said.
“If the proposed cuts fall short of the
target or certain departments fail to
submit areas for reducing spending, we
will have to determine [what to cut],”
said an official at the finance ministry.
The need for further belt tightening
comes as a growing number of analysts
revise downwards their expectations for
an economic recovery. According to
Russia’s Federal Statistics Agency, the
country’s gross domestic product is
expected to have contracted by 3.7 per
cent last year.
Until late 2015, both the government
and many private sector economists
had been assuming it would return to
slight growth in 2016, but now many
warn of a second consecutive year of
recession.
“Under our base case scenario Brent
will exceed $50 at year-end but average
only $42 for the year. That implies a
[rouble/dollar] rate close to 80 in the
first quarter, albeit improving in the
fourth quarter, and a GDP contraction of
0.3 per cent,” said Chris Weafer, a part-
ner at Macro-Advisory, a Moscow-based
consultancy firm.
Herman Gref, chief executive of state-
owned Sberbank, said yesterday that
Russia’s largest lender had started con-
ducting stress tests assuming oil prices
at $25. “That is already a tough scenario,
but all depends on how long it lasts,”
Mr Gref said. “If it lasts long, half a year
or a year, that will be very painful for the
economy.”
economies
urged to
confront
‘new reality’
CLAIRE JONES — PARIS
SHAWN DONNAN — WASHINGTON
Emerging economies are facing a “new
reality” that is significantly slowing the
pace of economic convergence with the
rich world and risks leading to further
financial market volatility, the head of
the International Monetary Fund has
warned.
Christine Lagarde told an audience of
senior monetary policymakers in Paris
yesterday that, after years of success,
developing economies needed to con-
front profound changes now under way.
“Growth rates are down and cyclical
and structural forces have undermined
the traditional growth paradigm,” Ms
Lagarde told a Banque de France confer-
ence to mark the retirement of former

Air of caution as Modi faces defining year governor Christian Noyer.

Stagnant freight volumes and
falling consumer confidence
contradict positive GDP data
VICTOR MALLET — NEW DELHI
Now that India is the world’s fastest-
growing large economy — and the most
dynamic of the big emerging markets —
it would be reasonable to expect inves-
tors, voters and government politicians
to be cheerfully contemplating a further
upswing in 2016.
Yet there is a mood of glum caution
in Mumbai and Delhi, and most eco-
nomic and business indicators sharply
contradict the story told by official gross
domestic product growth of 7.4 per cent
in the latest quarter.
Freight volumes by rail and by sea are
stagnant, cement production is weak,
new capital expenditure projects are in
decline and the confidence of consum-
ers and business people has been falling.
There is little sign of substantial new
employment to cater for the 1m Indians
per month entering the jobs market.
Rajeev Malik, an economist at broker
CLSA, says he has never seen an econ-
omy growing at a rate of 7 per cent to
8 per cent “but without any spring in its
step”. He adds: “There’s a certain discon-
nectbetweenwhattheofficialGDPnum-
berssay and whattheground reality is.”
Whether real or perceived, India’s
economic problems pose a political and
administrative challenge to Narendra
Modi, the prime minister and Bharatiya
Janata party leader.
He swept to power in mid-2014 with
the biggest electoral mandate in a
generation and launched a series of
high-profile programmes to modernise
India, including Make in India for
manufacturing, Digital India for high-
tech services, and other projects for
“smart cities”, sanitation and financial
inclusion. Next month’s budget will
focus on agriculture.
But opposition control of the upper
house of parliament has blocked the
passage of vital economic reforms —
including a goods and services tax that
would boost GDP and turn India into a
single market — and business leaders
privately question the effectiveness of
Mr Modi’s cabinet ministers.
“Modi’s not delivering,” says one for-
eign investor, who did not want to be
named. “He’s talked. He’s launched a
whole lot of branded efforts. He’s made
speeches abroad. When it comes to real
reform, it’s not very much.”
Challenging
times: there
were high
expectations
when Narendra
Modi swept to
power, but he is
now facing
criticism for
failing to deliver
Adnan Abidi/Reuters
There are good technical explana-
tions for the mismatch between rapid
official GDP growth and slow progress
on the ground. Firstly, India’s Central
Statistics Office revised the way it calcu-
lates GDP a year ago, and some econo-
mists think the current series overstates
real growth by 1 to 2 percentage points.
Secondly, the deflation used to calcu-
late the latest real GDP growth numbers
has artificially boosted recorded
growth. Mohan Guruswamy, economic
‘There’s a adviser in a previous BJP government,
points out that nominal GDP growth of 6
certain per cent is, unusually, lower than real
disconnect growth and half the nominal target set
between by Arun Jaitley, the finance minister.
“They are pulling off a big fiddle,” he
what the says, noting that savings rates have
official GDP fallen, many power stations are shut for
numbers say lack of demand and infrastructure
projects remain stuck in a bureaucratic
and what the logjam. “You can fudge GDP numbers,
ground but you’ve got indicators like credit
reality is’ offtake . . . capital expenditure has just
fallen. In India, the government is the
driver of capex and they are just not able
to close projects.”
Mr Modi’s government insists that it
has been exceptionally quick to stabilise
the struggling economy it inherited in
2014 and cut the budget deficit. Indian
conglomerates have proved reluctant to
invest, but that is partly because the
finance ministry and the Reserve Bank
of India are forcing banks to clean up
their bad loans to big companies.
Jayant Sinha, minister of state for
finance, says new sectors such as ecom-
merce, healthcare and pharmaceuticals
“are starting to power ahead”, although
mining and steel have been hit by the
global slowdown and farming has suf-
fered from two seasons of below-aver-
age monsoon rainfall. “The robust
recovery is not yet at a stage where it’s
firing on all cylinders,” he admits.
Most entrepreneurs still want to give
Mr Modi the benefit of the doubt, and
say the investment mood, although cau-
“On current forecasts, the emerging
world will converge to advanced econ-
omy income levels at less than two-
thirds the pace we had predicted just a
decade ago. This is cause for concern.”
India GDP The change would also reverberate in
% (year on year) rich economies, she added. A 1 per cent
slowdown in emerging markets will
9
cause already-weak growth in advanced
countries to slow by about 0.2 percent-
8 age points, Ms Lagarde said.
Her warning comes amid growing
7
concerns at both the fund and the World
Bank over the slowdown under way in
emerging economies. The World Bank
6 last week warned that developing econ-
omies were facing a difficult year in
2016 after last year growing at their
5 slowest rate since the 2008 global finan-
cial crisis.
The angst among investors over slow-
4
2013 14 15
ing growth, particularly in China, and
how authorities are responding has also
New capital expenditure led to a volatile start to the year in finan-
projects cial markets.
As well as urging policymakers to
$bn (Q4 average) keep monetary policy loose and use fis-
20
cal policy and structural reforms to
boost growth, Ms Lagarde called for less
reliance on debt and greater use of
15 equity financing.
“There is an inherent debt bias
embedded in the global tax system.
10 More generally, the international mone-
tary system would benefit from a higher
share of equity compared with debt
5 flows,” she said.
“This can be achieved by examining
instruments that alter the composition
and nature of international flows —
0
2005 07 09 11 13 15 away from short-term debt and toward
longer-term equity flows.”
Source: Capital Economics
The IMF managing director added:
“Overall, a global shift toward more
‘Modi’s not tious, is better than the despair and frus- long-term, equity based capital flows
tration many of them felt in the final would alleviate concerns about revers-
delivering. months of the previous, Congress-led als, and lessen the need for insurance. It
He’s government. Road building to ease would also reduce the size of financial
launched a India’s congestion, for example, has buffers that emerging and developing
accelerated under Nitin Gadkari, trans- countries need to maintain.”
whole lot of port minister. Ms Lagarde warned that the US Fed-
branded “The problem was always one of eral Reserve’s shift towards ending its
efforts [but] expectations. When Modi came in a ultra aggressive easing policies had the
year and a half ago, the expectations potential to trigger further exchange
when it were so high and the economy had rate ructions.
comes to real plunged so low,” says Gurcharan Das, a “This volatility could be induced not
reform, it’s writer, businessman and company only by the divergence in monetary pol-
director who used to head Procter & icies in major advanced economies, but
not very Gamble in India. also by uncertainty about their overall
much’ India, he adds, needs a further 2 per- prospects and policy action,” she said.
centage points of growth to hit 9 per cent Commenting on the recent bout of
or more and create the jobs it needs. turmoil in China, she said the shift
“I personally think we have turned towards slower and sustainable growth
round,” says Mr Das, while warning Mr was positive “in the long run”. But the
Modi. “There are some sectors that are short-run impact would drag on global
beginning to show some buoyancy. But trade and commodity prices, as well as
this is the year — 2016 — this is the year triggering financial turmoil.
of growth. If we aren’t going to get it now, Ms Lagarde also signalled that energy
we can really go after him.” prices would remain low.

Defence market

West suspects Pakistan drones point to China’s growing ambition as global arms exporter
FARHAN BOKHARI — ISLAMABAD
When Pakistan’s military claimed its
first attack in October using a home-
built drone to hit a Taliban stronghold,
western officials were quick to search
for clues to a Chinese connection.
Experts say Pakistan’s “Burraq”, one of
the two types of indigenously built
armed drone, bears a striking resem-
blance to China’s CH-3.
Pakistani officials lauded the drone
that equipped the country with a tech-
nology that has been denied them by the
US in 15 years as a key Washington ally
in the campaign against terror.
“The Americans have given us bil-
lions of dollars and military equipment
like F-16s since the 9/11 attacks,” says
one senior Pakistani foreign ministry
official. “But whenever we asked for
armed drones, we were refused and the
Americans always told us that was sen-
sitive technology.”
Although Pakistani officials deny sug-
gestions of Chinese involvement in the
country’s drone programme, western
officials remain unconvinced as mili-
tary ties between Beijing and Islamabad
tighten.
Earlier this year, China confirmed an
agreement to sell eight submarines to
Pakistan in Beijing’s largest ever single
defence export order.
Rana Tanveer Hussain, Pakistan’s
minister of defence production, has
confirmed that half of the eight subma-
rines will be built at the Karachi ship-
yard and engineering works, boosting
Pakistan’s shipbuilding capacity.
“The two projects [building four sub-
marines in China and four in Pakistan]
will begin simultaneously,” he said,
while commending China as an “all-
weather friend”.
Analysts say Pakistan is seeking to
make China its main supplier of military
hardware, partly due to the looser finan-
cial terms offered by Beijing, replacing years, replacing Germany to become the and gone are the days when it simply
traditional suppliers from the west. world’s third-largest exporter after the used to copy Soviet or Russian designs,
One indication of China’s emergence US and Russia. China’s biggest customer so countries buying Chinese equipment
as a rising arms exporter was high- during the period was Pakistan which, like Pakistan certainly stand to gain,”
lighted in a recent report by the Sweden- according to Sipri, bought 41 per cent of says Peter Felstead, editor of IHS Jane’s
based Stockholm International Peace China’s exported arms. Defence Weekly, the global defence pub-
Research Institute, which concluded “China’s capacity to indigenously pro- lication.
that China had increased its arms duce military platforms has made sig- “The gap between Chinese capabili-
exports 143 per cent in the past five nificant gains over the past decade or so, ties and those of the west have been nar-
rowed, except in a few areas such as the
production of aero-engines, for which
Chinese-built platforms remain
dependent on Russian imports.”
Mr Felstead’s reference to Russian
components is most visible in the case of
the JF-17 “Thunder” fighter jet, jointly
manufactured by China and the Paki-
stan Air Force at its Pakistan Aeronauti-
cal Complex, just north of Islamabad. A
senior Pakistan defence ministry offi-
cial confirmed that the JF-17, which will
become the PAF’s main second-line
fighter jet, will be “powered for the fore-
Combat drone ‘Burraq’ on display in Islamabad last year — Metin Aktas/Getty seeable future” with the Russian-built
RD-93 engine, overlooking Beijing’s
offer of a Chinese engine.
Pieter Wezeman of Sipri says Chinese
military equipment is at a disadvantage
for not having been used in conflict situ-
ations, unlike hardware from western
suppliers which comes with a combat
history. “The only place where Chinese
equipment is known to have performed
alongside equipment from other suppli-
ers is Pakistan,” he notes.
In the case of Pakistan’s use of its first
armed drone, Mr Wezeman says it is
important to remember that it was used
against Taliban targets in a remote
region along the Afghan border, and it
was not challenged by enemy aircraft.
“One has to be careful before one sees
this as a breakthrough,” he adds.
Still, western defence officials say Bei-
jing’s strategy of offering significantly
lower prices and a virtual absence of
political strings gives China a rising
presence in international markets.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 9
10 ★ FINANCIAL TIMES Wednesday 13 January 2016

INTERNATIONAL
GLOBAL INSIGHT
South Korea
NICOSIA

Samsung backs down on factory checks Tony

Concession to activists
as longstanding cancer
claims threaten brand
SIMON MUNDY — SEOUL
Samsung Electronics has agreed to sub-
ject its factories to independent inspec-
tors — a significant concession to activ-
ists, who reiterated calls for it to accept
blame for cancer among workers.
pacity of Lee Kun-hee, group patriarch.
Last year Samsung announced a
Won100bn ($83m) fund to be used to
compensate sick former workers in
what it called a goodwill gesture, and
preventive measures.
Many former workers have applied
for compensation, but Sharps, the activ-
ist group that has led the campaign —
which includes several former staff and
their families — said Samsung had failed
to follow the recommendations of a
Barber
factories over the next three years and ‘We will dangerous substances in the company’s
make recommendations, which Sam- plants. But Samsung has said there is no
need to see
sung said it would “faithfully imple-
ment”. The two sides agreed on the head
of the team, a labour law professor, who
whether
evidence of a link, maintaining that
while studies have found elevated levels
of chemicals and radiation, these were
Reunification talks
will choose the other members.
Hwang Sang-ki, the most prominent
Samsung
will fully
within legal limits.
Sharps wants Samsung to give control
seen as beacon of hope
campaigner, whose his daughter died of
leukaemia after working at a Samsung
semiconductor plant, withheld judg-
co-operate
over the compensation to an independ-
ent body, another of the mediation com-
mittee’s suggestions, instead of dispens-
in Cyprus stand-off
ment on the deal. “We will need to see
in opening ing it directly.
whether Samsung will fully co-operate their Samsung said more than 150 people

For more than a year the company has
been trying to resolve longstanding
complaints from dozens of former
workers who say their exposure to toxic
chemicals and radiation resulted in can-
cer and other serious diseases.
The scrutiny has threatened Sam-
sung’s brand at a time when it is trying
to maintain investor confidence amid
slowing smartphone sales. It also faces a
leadership transition following the inca-
mediation committee. in opening their factories to the inspec-
Samsung’s announcement that it tors,”hesaid.
will establish an independent “ombuds- Sharps said it would continue its pro-
man” team, as recommended by the tests outside Samsung’s Seoul headquar-
mediation committee, addresses a ters and refuse to endorse compensation
central demand of the activists. Sharps payments until the rest of its demands
had dismissed a previous proposal to were met, including an admission of
deploy an inspection team appointed by responsibilityforworkers’ills.
the company, saying such a team’s inde- South Korea’s courts have found a
pendence would be suspect. causal link between four cases of cancer
The ombudsman team will inspect or aplastic anaemia and exposure to
Election. Fine Gael
A
factories’ had applied, of whom more than 100
had accepted financial support, in
return for which they waived their right
to pursue legal action. “Along with the
financial aid, every recipient has
received a heartfelt message of sympa-
thyfromSamsung’sCEO,”itsaid.
Mr Hwang said the compensation to
some applicants had fallen short of
medical expenses.
Additional reporting by Kang Buseong
nyone who is confident that 2016 will be the
breakthrough year for the Cyprus dispute,
one of the world’s oldest and seemingly most
insoluble diplomatic problems, would benefit
from an hour with Alexis Galanos.
Mr Galanos, 75, is the Greek Cypriot mayor-in-exile of
Famagusta, a once thriving port city and tourist resort on
the east coast that fell under Turkey’s control after its
armed forces invaded Cyprus in 1974.
Launched after a Greek-inspired coup that aimed to
unite Cyprus with Greece, the invasion resulted in the
island’s division into a Turkish Cypriot north and a Greek
Cypriot south. For four decades, most people in the two
communities have lived so apart that they might as well be
on different planets.
Mr Galanos opposed the previous big peace initiative,
the so-called Annan plan of 2004. Although he supports

Irish set to reward austerity party
Opinion polls suggest tax rises
and spending cuts will not
benefit leftwing politicians
VINCENT BOLAND — DUBLIN
As she emerges from browsing the Janu-
ary sales at one of Dublin’s main depart-
ment stores, Patricia Dunne clutches a
small shopping bag and admits she has
given little thought to how she might
vote in Ireland’s general election.
With shoppers swirling around her —
this past holiday season looks set to be
the best for Irish retailers since 2008,
according to the industry — the 29-year-
old accountant says after some consid-
eration: “Things are better now than
they were two years ago, and you have to
give the government credit for that. I
think they deserve to carry on. I’ll prob-
ably vote for them again.”
Ms Dunne is among many Irish voters
who, according to opinion polls, will do
something unprecedented among
Europe’s crisis-hit countries when they
vote in the election — return to office a
political party that imposed harsh aus-
terity measures, including tax rises and
spending cuts that saw an employee’s
average salary fall by 15 per cent.
In parts of the eurozone, the existen-
tial crisis over the single currency has
brought new parties to the fore on the ‘We’re back
left. Syriza in Greece is the most dra-
matic example. In Portugal, the new in the
socialist government is supported by international
the hard left, while in Spain an inconclu-
sive election has highlighted the rise of markets and
Podemos, a populist movement that at home
captured the anti-austerity mood.
But if the left has been revitalised by we’re getting
the “Club Med” crisis, up in the cold back to work’
north Atlantic it is the endurance of the
centre. “I don’t get the impression that
Irish voters suddenly want to join the
Socialist International,” says Charles
Lichfield, an analyst at Eurasia Group,
the political risk consultancy.
Opinion polls suggest that Fine Gael,
the centre-right party led by Enda
Kenny, the Irish prime minister, is set to
be again the biggest in the Dáil, or par-
liament, after the election.
That would be a personal triumph for
Mr Kenny as no Fine Gael taoiseach has
won a second term. It would also cement
his position as one of Europe’s most suc-
cessful centre-right political leaders,
putting him in the same bracket as
Angela Merkel of Germany and the UK’s
David Cameron.
Mr Kenny says the election will be in
“early spring”, probably the end of Feb-
ruary. On Monday, he played up his gov-
ernment’s achievement in restoring
economic growth after Ireland’s finan-
cial crisis and humiliating €67bn bail-
out. The Irish economy was expected to
grow about 7 per cent last year. Just two
years after the bailout expired, Ireland’s
economy is by far the fastest-growing in
the eurozone. “We’re back in the inter-
national markets and at home we’re get-
ting back to work,” Mr Kenny says.
The unusual stability of Irish politics
at a time of political instability in much
of Europe is partly an illusion. The crisis
has seen the emergence of a handful of
small parties, mainly on the left, but
they are marginal and disorganised.
It has also led to a surge in support for
Sinn Féin, a hard-left nationalist party.
But Sinn Féin is not new (it was founded
in 1905) and is not populist in the Euro-
pean sense.
Aidan Regan, a political scientist at
University College Dublin, is struck by
the difference in the post-crisis political
mood between Ireland and Spain. “Our
crises were identical: they had their
roots in the banks, construction, a credit
bubble and a housing bust,” Mr Regan
says. “In Spain, new parties emerged to
make that a political issue and the
dynamic of change is on the left. Here,
that just hasn’t happened.”
The most profound realignment in
Ireland has taken place in the centre. In
the last election, in 2011, voters inflicted
the heaviest defeat ever on Fianna Fáil,
the party in office when the crisis
The river
Liffey in
Dublin. As
memories of
the crisis fade,
Irish voters
seem ready to
cement the
political status
quo — Jeff J
Mitchell/Getty Images
struck. Fianna Fáil dominated Irish pol-
itics throughout the 20th century, but
“those days are over”, admits Michael
McGrath, its finance spokesman.
A study by UCD described the 2011
Irish election as “the third most volatile
election in postwar western Europe”.
Yet it was not so much a revolution as a
noisy rearrangement of the furniture:
the beneficiary of Fianna Fáil’s rout was
Fine Gael. Moreover, Fianna Fáil is still
around. One post-election scenario is
that it could be the junior partner in a
new Fine Gael-led coalition.
As Irish voters move further away
from memories of the crisis, the more
they seem ready to cement the political
status quo, especially as the economy
recovers. This growth benefits the mid-
dle classes the most — and they are
mostly Fine Gael voters such as Ms
Dunne, who want to maintain the
momentum of recovery.
the latest, apparently promising effort to reunite Cyprus,
he is under no illusions that it will be plain sailing. Alluding
to the UN-monitored buffer zone, or Green Line, that sepa-
rates the two communities, Mr Galanos says: “Most of the
walls are not between us but inside us.”
His life story shows that any lasting settlement will
require not just sophisticated answers to the various politi-
cal and legal issues. It will need painful moral adjustments,
and a coming to terms with loss, from Greek Cypriots and
Turkish Cypriots who each feel themselves victims of his-
torical injustice.
Some 40,000 people, representing the entire Greek Cyp-
riot population of Famagusta and its beach resort of Varo-
sha, fled their homes in
1974 before the Turkish
army’s advance. Mr
Greek Cypriots
Galanos, a Famagusta and Turkish
native, owned a flour mill
and biscuit factory there.
Cypriots each
Today this factory is in feel themselves
the hands of a settler
from Turkey’s Anatolian
victims of injustice
heartland, as are many
properties in Famagusta and the rest of northern Cyprus
that were abandoned by Greek Cypriots. For 35 years, Mr
Galanos was too angry and upset to visit Famagusta, even
after border crossings were opened in 2003.
Similarly, it has always been an article of faith with the
Famagusta refugees that any peace deal must guarantee
the return of their property and the restoration of the city’s
predominantly Greek Cypriot character. In practice, this is
no longer a realistic hope, says Mr Galanos. “A large
number of the original inhabitants have died or emigrated.
The number who would like to return is much smaller
than the original number of refugees,” he says.
However, if much of Famagusta’s former atmosphere is
gone forever, a peace settlement might inspire foreign as
well as Cypriot investors to spend money on sprucing up
its medieval old town, modernising its port and building a
new Varosha. This resort, once one of the Mediterranean’s
most fashionable, has been sealed off under Turkish mili-
tary occupation for almost 42 years and is today a decaying
ghost town that will cost billions of euros to renovate.
Nicos Anastasiades and Mustafa Akinci, the Greek Cyp-
riot and Turkish Cypriot leaders, have held 20 rounds of
talks on reunification since last May. They have made
progress on the political and judicial structures of a future
bi-communal, bi-zonal Cypriot state, but they have left dif-
ficult matters such as territorial exchanges and security
guarantees until the final stages of the talks.
Ominously or not, one formula that negotiators used in
earlier peace attempts is being applied to this effort, too:
“Nothing is agreed until everything is agreed.”
Still, Ban Ki-moon, the UN secretary-general, summed
up the general sense of optimism when he wrote in a report
last week to the UN Security Council: “I believe that an
agreement is within reach . . . At a time characterised by
extreme political volatility, and with a geopolitical situa-
tion where societies are ripped apart and in which violence
is ever growing, the negotiations to solve this longstanding
conflict offer a beacon of hope.”
tony.barber@ft.com

Technology Greece

Israel’s cyber security industry fuels growth in investment
JOHN REED — TEL AVIV
Israel racked up cyber security sales
worth $3.5bn to $4bn last year and
attracted about 20 per cent of global
private-sector investment in the bur-
geoning industry — putting its compa-
nies second only to their US counter-
parts — according to the country’s top
cyber official.
The figures underscore the Jewish
state’s growing credibility as a world
leader in an emerging area where its
military capabilities dovetail with a
growing private-sector export industry.
The country’s share of global invest-
ment last year was up from 10 per cent
in 2014.
Israeli and foreign online security
experts have described the country of
just 8m people as one of five emerging
“cyber powers”, alongside the US,
China, Russia, and the UK.
“We think the cyber revolution is the
third revolution after the agricultural
and industrial one, and it’s going to
change all of our lives,” Eviatar Matania,
head of Israel’s National Cyber Bureau,
told the Financial Times in an interview.
Other countries, including the UK,
were “adopting our approach and our
strategies” in their national cyber secu-
rity policy, he said.
Mr Matania said he expected a contin-
uing rise in cyber attacks on industrial
systems such as generators, vehicles,
aircraft and medical devices.
He also warned of the danger of
“cyber network influence” attacks, in
which social or traditional media are
hacked to sow confusion.
A prominent example was the 2013
cyber attack on the Associated Press
Twitter account, in which a false report
was posted about two explosions in the
White House that were said to have
injured the US president Barack Obama.
The rumour caused the New York Stock
Exchange to fall by 1 per cent temporar-
ily, wiping some $136bn off stock prices.
“This is an example of much more
complicated things that will happen,”
Mr Matania said.
Israel’s proven cyber security exper-
tise — and ability to capitalise on the
growing vigilance and paranoia about
online security among companies and
governments — are fuelling growth in
civilian cyber security companies and
inward investment.
Microsoft last year bought Adallom,
an Israeli cloud security company, for a
reported $320m in the latest of several
cross-border acquisitions seen in the
sector.
Israel is building a hub known as
CyberSpark in the southern city of Beer-
Sheva, where cyber security companies
will be located alongside military intelli-
gence units and Ben-Gurion University,
one of the country’s five cyber-research
centres.
According to the National Cyber
Bureau, Israel has 250 cyber security
$4bn $320m
The amount of Sum paid for the
cyber security Israeli security
sales Israel racked firm Adallom by
up last year Microsoft in 2015
companies and last year’s exports repre-
sent about 5 per cent of the $75bn global
market. But it cautioned that the sales
figures were an estimate, with final glo-
bal sales numbers not yet available.
Israel is also promoting cyber-educa-
tion down to primary school level
through programmes developed with
the education ministry.
“Since this is something new, we
would like [children] to . . . have a feel-
ing for this domain,” Mr Matania said.
“Later, when they become program-
mers, they will have the intuition to
move in this [area].”
Israel has built up its defensive and
offensive capacity in cyber security
because its government institutions and
military are under constant attack from
hacker groups, some of which have sup-
port from state actors such as Iran,
Israeli officials claim.
In November Check Point, Israel’s big-
gest cyber security company, exposed a
large-scale cyber attack it said hit busi-
nesses and government targets across
Saudi Arabia. The Tel Aviv-based com-
pany said it thought the attack, dubbed
Rocket Kitten, had “possible ties” to
Iran’s Revolutionary Guards.
Syriza strategy tested as gold
miner threatens to stop work
KERIN HOPE — ATHENS
A Canadian mining company that has
invested $700m in gold extraction
projects in northern Greece has threat-
ened to suspend its operations because
of delays in issuing licences and per-
mits, its chief executive has
announced.
The leftwing Syriza government
responded by accusing Eldorado Gold,
the largest foreign investor in Greece, of
attempting to blackmail the Greek state.
“Our investment is being treated as a
political toy,” Paul Wright, chief execu-
tive of the Vancouver-based miner, said
in Athens yesterday. “We’re just spin-
ning tyres, spending money and not
making progress.”
Mr Wright said that activities at two
gold mines under development would
be shut down at the end of March, with
the loss of about 600 jobs, if the environ-
ment ministry failed to approve applica-
tions to install processing facilities that
had been agreed by previous adminis-
trations
The 10-month stand-off over Eldo-
rado’s permits is seen as a test of Syriza’s
avowed commitment to promote for-
eign investment and create jobs as
Greece struggles to emerge from years
of recession.
Panos Skourletis, environment minis-
ter, said yesterday: “They [the com-
pany] are making a wrong calculation if
they think the Greek state will give in to
any form of blackmail.”
Eldorado acquired the assets of a
Greek mining company in 2011, and
planned to invest more than $1bn to
develop them. But the project ran into
trouble after Syriza came to power last
year and appointed Panayotis
Lafazanis, a former senior official in the
country’s communist party, as its minis-
ter for productive recovery, energy and
the environment.
Mr Lafazanis and an extreme-left fac-
tion that denounced the gold projects
have since split from Syriza but several
MPs representing Halkidiki, the site of
both developments, still oppose them
on environmental grounds.
Wednesday 13 January 2016
The company aims to boost productivity at its plants — and its customers — by transforming its engines
and locomotives into intelligent devices. But the shift will expose it to stiff competition from tech groups.
G
eneral Electric’s latest tech-
nology for boosting manu-
facturing productivity is a
gadget that feels like it
would be more at home in
an amusement arcade or theme park
than in an industrial laboratory. At the
group’s global research centre in Niska-
yuna, New York, you can enjoy the sen-
sation of flying around its steam turbine
plant in Schenectady, six miles away.
A virtual reality 3D scan of the plant,
accurate to every last machine tool and
piece of pipework, is projected onto a
screen and special glasses. Using a Play-
Station-style controller, you can move
around the factory floor, swooping over
assembly lines or hovering over a stack
of components.
The system is a lot of fun to use, but
the intent behind it is entirely practical:
to allow GE’s engineers to work on
design, layout and workflow at its plants
without actually being there. If they
want to move in a piece of new equip-
ment, for example, they can use the
simulation to see if it will fit. The sys-
tems for collecting and analysing manu-
facturing data — fitted in at least 75 of
GE’s 590 plus factories — can cut costs
by 15 per cent or more, say company
executives.
The technology is just one part of a
radical overhaul designed to transform
the 123-year-old group into what Jeff
Immelt, chief executive since Septem-
ber 2001, calls a “digital industrial”
company. At its core is a drive to use
advances in sensors, communications
and data analytics to improve perform-
ance both for itself and its customers.
GE’s products such as aero engines,
power generation equipment, locomo-
tives and medical scanners are being
made part of the “internet of things” —
intelligent connected devices that can
transmit information and receive
instructions — and the company is
building new capabilities in software to
understand and manage those
machines.
The potential rewards for success are
enormous for a group that has sold off
large chunks of its business to refocus on
its industrial operations.
“It is a major change, not only in the
products, but also in the way the com-
pany operates,” says Michael Porter of
Harvard Business School. “This really is
50bn $8.6tn
Thenumber Valueofthe
ofconnected industrial
‘things’therewill internet by2020,
beby2020 accordingtoGE
going to be a game-changer for GE.”
If it fails, however, it could prove a
decisive factor in hastening a further
break-up of the group.
The power of the industrial internet of
things is only just starting to be
explored. Companies in areas from
manufacturing to energy, transport,
and mining collect huge volumes of
data, but use only a fraction of it.
If GE can succeed in finding ways to
use that information to cut its costs and
raise the productivity of its products
and services, it could gain a critical com-
petitive advantage over rivals such as
Siemens, Mitsubishi, United Technolo-
gies and Rolls-Royce. It also aims to cre-
ate an important new source of income
from cutting costs and boosting produc-
tivity for other companies, even if they
are not using GE equipment.
Entering this world, however, is also
bringing GE new competition. In setting
itself up as a software business that can
help other industrial groups reap the
benefits of the internet of things, GE will
be taking on Microsoft, Amazon, IBM,
Oracle and SAP.
“GE is drag-racing with the best tech-
nology companies in the world,” says
Frank Gillett of Forrester Research.
“Kudos to them for trying, but I think
they will find it harder than they think.”
Getting out of finance
In April, GE embarked on one of the
most radical changes in its history, say-
ing it would sell about 90 per cent of GE
Capital, the financial services unit that
just a couple of years ago provided about
half the group’s $14bn earnings.
That decision was welcomed by ana-
lysts and investors — its shares, after
lagging behind the wider market for
most of Mr Immelt’s tenure, have risen
17 per cent in the past 12 months. The
crisis of 2007—09, which forced GE to
cut its dividend and lose its triple-A
credit rating, convinced many of the
business’s potential for disaster.
FT BIG READ. GENERAL ELECTRIC
By Ed Crooks
Post-industrial revolution
Medical equipment
Scanners and other
devices communicate to
improve treatment and
minimise errors
Wind farms
Wind turbines are
connected to a network,
continuously reporting
data about their
performance and
receiving instructions
to improve efficiency.
The system can
boost output
up to 20 per cent
Aircraft
engines
GE works with airlines
on analysing engine
performance data to
identify opportunities
to save fuel, and
recommends changes
including optimal
flight paths and
thrust settings
Factories
Analysis of data on the
performance of
products in service can
be used to improve the
design and production
of new models
The regulation that followed, placing
additional burdens on GE as a “systemi-
cally important financial institution”,
meant that even in good times the
returns on capital looked unattractive.
Yet while financial services might
have been a dangerous artificial stimu-
lant, there is a big question about how
fast GE, can grow without them.
When Jack Welch, Mr Immelt’s prede-
cessor, took over GE in 1981, it was
viewed by many as a “GDP company”:
the kind of big, boring business that
grows only as fast as the gross domestic
product.
To avoid that tag Mr Welch pushed
into financial services and other busi-
’GE is drag-racing with the
best technology companies
in the world . . . they will
find it harder than they
think’
nesses that could grow more rapidly.
Without that business, GE faces the
prospect of returning to GDP rates of
growth.
With a market capitalisation of
$250bn GE is one of the most valuable
brands in the world. The group employs
over 300,000 people and its most profit-
able sectors last year were power equip-
ment and aviation which both contrib-
uted about $5.5bn.
However, the slowdown in the world
economy, and the fall in commodity
prices that has hit GE’s businesses pro-
viding equipment for oil production and
mining, mean that the group’s earnings
per share are expected to have dropped
by 21 per cent last year.
Brian Langenberg, an industrial ana-
lyst who chairs the business school at
Aurora University in Illinois, expects
GE’s organic sales growth from now on
to be in line with global GDP, forecast by
★ FINANCIAL TIMES
GE has left . . .
Insurance
Plastics
TV and theme parks
Most financial services
the International Monetary Fund to be
3.6 per cent this year.
The industrial internet, however,
offers GE a hope of escaping that unin-
spiring prospect. The falling cost and
rising power of sensors, communica-
tions devices and data processing mean
that just about any product can be made
capable of sending and receiving infor-
mation and commands. The internet of
things is best known today for con-
sumer applications such as fridges that
can order your groceries. The more
important applications, however, are
likely to be in industry.
By 2025 the economic benefits of the
internet of things could be $11.1tn a
year, according to the McKinsey Global
Institute. It estimates that about 40 per
cent of those benefits could come in fac-
tories and work sites such as oilfields,
with transport and urban infrastructure
accounting for a further 30 per cent.
Big business
Marco Annunziata, GE’s chief econo-
mist, believes that as companies work
out how to exploit the potential of the
new technologies, it could unleash a new
productivity revolution in industry.
Since 2010 productivity in US manufac-
turing has stagnated, rising just 1 per
cent a year compared with the annual
4 per cent growth in the previous two
decades. Mr Annunziata says the indus-
trial internet could help bring back
those higher rates of growth.
“The first ICT revolution came in the
1990s: using computers as ways to
gather and organise information. Now
we are literally making machines more
intelligent,” he says. “This tying
together of the digital and the physical is
something we have never seen before.”
He cites mining companies, under
huge pressure to cut costs because of
weak commodity prices, as an example
of businesses that are keenly interested
in the potential of the technology.
They already record large amounts of
Power plants
Performance data can be
analysed to identify and
predict faults, and to
maximise profitability
based on market prices,
weather conditions
and other factors
data — Teck Resources of Canada says it
has 200 sensors on every mining truck
— and if they can analyse it properly
they can discover ways to improve effi-
ciency, such as predicting more pre-
cisely when failing parts need to be
replaced, reducing the time when
expensive machinery sits idle.
GE says that at one of its mining cus-
tomers, trucks that were previously
available for use 70 per cent of the time
are now available 85 per cent.
Jim Heppelmann, chief executive of
PTC, a software company that works
with GE and other manufacturers, says
that sort of boost to productivity repre-
sents a critical competitive advantage.
“If you have a 10 to 20 per cent cost
advantage on a product with 3 to 5 per
cent margins, you’re going to walk all
over the competition,” he says.
GE executives believe it can be in the
vanguard of this revolution. The com-
pany is spending $1bn a year to boost its
digital capabilities, hiring 1,000 soft-
ware engineers and data scientists and
setting up a new data analytics centre in
San Ramon, California, just across San
Francisco Bay from Silicon Valley.
In the next month, it is expected to
launch Predix, its software platform for
General Electric
Profit ($bn)
Other Capital finance
Healthcare Power and water
Aviation
Forecast
-10
-15
2013 14 15 16
Sources: Thomson Reuters Datastream; Morgan Stanley
11
managing and analysing industrial data.
“In industry, there is a lot of stuff that
people don’t know how to find and don’t
know how it is performing,” says Beth
Comstock, who leads new business
development at GE. “We can analyse
how it is performing, [and] we can pre-
dict what will happen.”
That analysis will be applied to both
GE products and to those made by other
companies. A modern locomotive is a
“rolling data centre”, as Mr Immelt puts
it. By analysing that data and cross-ref-
erencing with its rail traffic manage-
Mining
ment system, and sending instructions
Trucks already collect to trains, GE can squeeze out an extra
large amounts of data, mile per hour of speed for US railway
which can be analysed to operators worth $200m per year in
identify when equipment
is at risk of failure, extra profits.
reducing breakdowns Similarly, Toshiba is working on a
and cutting pilot project with GE to develop an
maintenance costs application for installing, operating and
maintaining lifts.
GE expects the use of Predix to grow
rapidly, with 500,000 products under
management by next year. Ms Com-
stock argues that many customers will
want GE to provide them with an inte-
grated package of products and services
to deliver specified outcomes, with data
analysis a central part of the package.
So far GE is the industrial company
that has made the strongest commit-
ment to the industrial internet,
although other manufacturers such as
Bosch of Germany and France’s Schnei-
der Electric have also been starting to
explore it. Siemens, GE’s main Euro-
pean rival, has announced only tenta-
tive initiatives.
Rail
Friends and family
Locomotives transmit data
on their position, fuel use GE accepts it is facing stiff competition
and other factors, and a in data analysis from specialised soft-
constantly updated ware companies. It argues, however,
centralised traffic that rivals start from a position of weak-
management system ness because they do not have the same
sends instructions to understanding of industrial machines.
maximise speed and
efficiency across the
“The domain knowledge for this is
network hard to come by. It is held by a small
number of people,” says Bill Ruh, head
of GE’s global software operations. “We
are the best of the best, because of what
we’ve done in combining physics and
analytics.”
For all Mr Ruh’s confidence, grafting a
world-class software business onto an
industrial conglomerate is not easy.
In its attempt to rebrand itself as “the
Jeff Immelt,
chief executive of
GE since 2001
Bloomberg
$250bn $11bn
GE’smarket Estimatedprofitsof
capitalisation.It powerequipment
employsabout andaero-engine
300,000people sectorslastyear
AP; EPA; Getty Images; Reuters; GE; Dreamstime
digital company that’s also an industrial
company”, GE has been running adverts
showing a young software engineer try-
ing to explain his new job at the com-
pany to family and friends.
In one, his friends are unimpressed by
what he does for power plants and hos-
pitals, but enthuse over another engi-
neer who is working on “the app where
you put fruit hats on animals”.
It is funny because it is true: the gulf
between the cultures of Palo Alto, Cali-
fornia and GE’s headquarters in Fair-
field, Connecticut is wide.
“They should not underestimate the
challenge of reinventing themselves as a
digital company,” Mr Heppelmann says.
“Silicon Valley is a very special place in
terms of its culture, its star system, its
remuneration. That’s something GE
can’t bring.”
It is not just in terms of recruitment
that Silicon Valley poses a threat to GE.
“GE is in a race to capture customers
before the likes of Amazon get better at
meeting industrial requirements, and
before customers get comfortable about
using them,” says Mr Gillett.
Establishing General Electric as a
leading company in the industrial inter-
net would be a crowning achievement
for Mr Immelt, who for much of his time
at the top of GE has laboured in the
Share price ($) shadow of Mr Welch. If the strategy fails,
however, it will be his failure.
35 The arrival of its first activist investor
25
— Nelson Peltz’s Trian Fund Manage-
30 ment last year revealed a stake of just
20
under 1 per cent — could also prove
15 problematic. While broadly supportive
25 of Mr Immelt, Trian has urged him to do
10
more to raise profit margins, and it is
5 20
clear that its amicable tone could sour.
0 If the costly bet on the industrial
-5 15 internet fails, then so will GE’s dreams of
achieving growth through technological
leadership. A less glamorous future of
10
deeper cost cuts, lower levels of invest-
2010 11 12 13 14 15 16 ment and perhaps a further break-up
would await.
12
WEDNESDAY 13 JANUARY 2016
Culture is a matter for
banks not regulators
FCA is right to focus on rules rather than minutiae of management
The former chief executive of Barclays,
Bob Diamond, once defined the culture
of a corporation as how its employees
behave “when no one is watching”. It
was an observation that may have con-
tributed to his own downfall a year
later when his bank’s involvement in
the Libor scandal came to light. But Mr
Diamond was surely right in his analy-
sis. Culture is something that is created
not by fiat, but which emerges almost
spontaneously from the tone that sen-
ior individuals set within an organisa-
tion. It is very difficult to mandate and
cannot obviously be governed by rules.
The Financial Conduct Authority has
been criticised for its decision last
month to scrap a probe into the culture
of retail and wholesale banks. This ini-
tiative, unveiled in its annual business
plan last year, aimed to determine
whether programmes to change cul-
ture in UK financial institutions were
“driving the right behaviour”, focusing
on bankers’ pay, appraisals and promo-
tion decisions. Following the departure
of the regulator’s activist chief execu-
tive Martin Wheatley last summer,
observers were swift to adduce the
retreat as further evidence of the FCA’s
willingness to take a softer line with
large banks — reflecting government
alarm at the possibility of institutions
such as HSBC relocating overseas.
The FCA has put a rather different
emphasis on its decision, claiming it
scrapped the review because each
institution had its own unique modus
operandi and these could not easily be
compared. This may seem a little thin
as an argument, and some still claim to
see the hand of politicians in the regula-
tor’s sudden change of heart. Nonethe-
less it is hard to object to the outcome.
The FCA has wisely chosen to focus on
its principal function as a City of Lon-
don regulator, and to leave fuzzier
behavioural assessments to such bod-
ies as the Banking Standards Board.
Mexico’s drug travails go
well beyond ‘El Chapo’
After the gangster’s arrest the country must improve the rule of law
Everybody seems to love an outlaw, no
matter their crimes. The grave of
Colombian drug lord Pablo Escobar is
now a tourist attraction, while his
biopic has become a hit television
show. The careers of Prohibition gang-
sters such as Al Capone have been seri-
ally written about and filmed — not
least the hit 1976 musical, Bugsy
Malone. And now there is Joaquín “El
Chapo” Guzmán, or “Shorty”, who also
imagined his life on the silver screen. It
was a vanity that led Mexican security
forces to Mr Guzmán’s hide-out and his
subsequent arrest on January 8.
His capture is a significant accom-
plishment by the Mexican govern-
ment. The leader of the Sinaloa cartel is
the world’s most notorious drug traf-
ficker and wanted criminal. His busi-
ness empire is responsible for as much
as half of all drugs trafficked north into
the US, a business that earns Mexican
cartels some $7bn a year. By his own
admission, in an interview with Holly-
wood star Sean Penn, Mr Guzmán sup-
plied “more heroin, methampheta-
mine, cocaine and marijuana than any-
body in the world”. Turf battles with
domestic rivals are meanwhile respon-
sible for thousands of deaths. Over the
past decade of Mexico’s drug war, more
than 100,000 people have been killed,
and another 20,000 have gone missing.
Mexico is a better place for being a
country where a mobster such as Mr
Guzmán can be arrested than one
where he runs free.
Nonetheless Enrique Peña Nieto, the
president, was foolish to crow “mission
accomplished” when Mr Guzmán was
caught. Yes, it is a public relations coup
for an administration still smarting
from Mr Guzmán’s escape from a high
security prison six months ago. Yet his
latest arrest (the third) will do little to
stop drug trafficking. It will likely do
little harm to his cartel’s operations —
which carried on when Mr Guzmán
Banks are ultimately private institu-
tions and not adjuncts of the state. It is
the job of the FCA both to ensure that
they treat their customers fairly and
also to preserve the integrity of the
UK’s financial markets. It is not the reg-
ulator’s function to determine how
they go about the day-to-day manage-
ment of their businesses. The sound-
ness of the country’s financial system
ultimately depends on having a sensi-
ble framework of well enforced rules as
well as institutions that are capitalised
sufficiently to withstand inevitable
periodic shocks.
One can argue whether the post-
crisis reforms authored by the chancel-
lor George Osborne have yet fulfilled
either criterion. But neither is likely to
be secured by the diversion of the FCA’s
energies into an assessment of the cul-
tural practices prevalent at diverse
British banks.
The regulator faces important chal-
lenges in the months ahead. It needs to
find a credible replacement for Mr
Wheatley, who was ejected from office
six months ago. Mr Osborne revealed
in a rather unorthodox aside during a
BBC interview last week that the regu-
lator’s interim head, Tracey McDer-
mott, had decided not to pursue the
opening left by her predecessor. It
would be of more value to learn who
had accepted the charge rather than
the identities of those who have not,
especially at a time when morale is low
and staff turnover is creeping up.
The past 18 months have tested the
FCA’s reputation for competence and
raised questions about its independ-
ence. It needs to put these firmly
behind it and play its part in imple-
menting vigorously the rules of the new
City regime. The road ahead will
almost certainly be bumpy. All the
more reason then for the FCA to put
aside distractions and focus on the
activities it was created to pursue.
was last behind bars. Nor will it do
much to reduce Mexican insecurity,
the greatest challenge that the country
faces.
This insecurity has many root
causes. It is fuelled by the ready supply
of US guns and the demand for illicit
drugs. Yet its most important cause is
Mexican corruption and impunity. It is
these that make possible the opera-
tions of criminal cartels such as Mr
Guzmán’s. Their businesses now
extend beyond drug trafficking to
include extortion, kidnapping, human
trafficking, oil theft and the mass ship-
ment of contraband iron ore to Asia.
While Mexico’s rule of law remains
weak, such operations will continue to
flourish. Correcting this is the real mis-
sion Mexico must accomplish.
Unlike when Mr Guzmán was last
captured, Mr Peña Nieto has this time
swallowed nationalistic pride to allow
for Mr Guzmán’s extradition to the US.
The process is legalistic and may take
years. Nor is the US immune to jail-
breaks. But at least Mr Guzmán will be
impounded outside his well-tested net-
works of corruption. That will remove
one problem from the government’s
hands. Mr Peña Nieto should now push
forward on flagging judicial and police
reforms.
These were promised years ago but
never enjoyed the same priority his
administration gave to more high-
profile measures — such as an historic
energy liberalisation or indeed Mr Guz-
mán’s capture. The Mexican govern-
ment must now show the same energy
and determination in improving the
rule of law. Achieving that, rather than
merely paying lip service to the idea,
would leave Mexico with an enduring
legacy. Only then could Mr Peña Nieto
credibly claim “mission accomplished”
and move beyond the theatrics of Mr
Guzmán’s bloodstained life and serial
escapes and arrests.
★ FINANCIAL TIMES
Worries over China and oil persist but world can fend off recession
Sir, Regarding Gillian Tett’s piece about
a number of hedge funds that call it
quits given the Chinese uncertainty
(“Rational markets expect crazy
economies”, Comment, January 8), oil
prices and geopolitical developments, I
would like to offer the following
thoughts.
I do not deny the possibility that the
rise in credit spreads could become
infectious and could affect investment-
grade bonds, which anyway suffer
from liquidity issues, as well as
equities.
Scrap red tape that stands
in way of capital controls
Sir, Innovative regulation on capital
inflows has to be part of creating a
more stable global financial system
(“Free capital flows can put economies
in a bind”, Comment, January 11).
Decades of evidence now points to
the fact that international capital flows
are irrational and tend to be pro-
cyclical, from the third world debt
crisis of the 1980s, the Asian financial
crisis, western banking crisis and
following eurozone crisis, and now the
latest bust cycle of money leaving
developing countries. While in
contrast, under the Bretton Woods
system — which used capital controls —
banking, financial and sovereign debt
crises were far less frequent.
The main barrier to effective capital
regulations “coming back” is the knot
of trade and investment treaties that
ban their use. The Lisbon Treaty bans
not just capital controls within the EU,
but also between an EU member state
and any third country. Blanket bans on
capital account regulation must be
scrapped to allow for sensible policies
to help stem the boom-bust cycle.
Tim Jones
Policy Officer, Jubilee Debt Campaign
London N1, UK
Short-term flows of money
should meet speed bumps
Sir, Wolfgang Münchau’s rethinking of
capital controls (Comment, January 11)
reminds me of the remark that James
Tobin, the late Nobel laureate in
economics, made right after the Asian
financial crisis occurred in 1997: “The
Asian economies are victims of a
flawed international exchange rate
system that, under US leadership, gives
the mobility of capital priority over all
other considerations.”
As Mr Münchau points out, free
capital movement has become “one of
the axioms of modern global
capitalism” since the so-called Reagan-
Thatcher revolution. As a result,
despite the ample evidence of the
inherent risks of short-term free capital
flows, policymakers of the leading
economies have seemed unable to look
much beyond the assumption that the
ideal world is one of free capital flows.
Charles Kindleberger, the late
economic historian, characterised
short-term capital flows as “manias
and panics”; history shows that such
volatile capital flows were the major
culprit in many financial crises. The
weight of historical evidence clearly
points toward restraint on capital
flows, especially for emerging
economies. Money that pours into a
country can just as easily pour out.
Highly volatile short-run capital, often
The pastry
that unites
Parisians of all
faiths and none
Paris
Notebook
by Adam Thomson
Letters
However, I do not subscribe to the
view that we could have a recession
due to lower oil prices, or a global
recession “made in China”.
The reasons for that are: first, credit
and lending conditions are stable and
consumer spending will probably
increase the demand for loans that will
be met by the abundant banking
reserves.
Second, we could see a recession due
to high oil prices (just recall the 1970s
or the mid-2000s) but not due to low
oil prices. Third, the era of banking
‘When he had hair he always
had it like David Bowie’
moved by self-fulfilling waves of
euphoria or panic, can disrupt
economies and cause massive swings in
exchange rates.
Some speed bumps, or “sand in the
market’s gears”, should be imposed on
inflows of short-term capital through
appropriate regulation of the banking
system or taxes. It is an ideological
humbug to argue that without free
mobility of volatile short-term capital
economies cannot function and their
growth rates will collapse.
Yeomin Yoon
Professor of Finance
Seton Hall University
South Orange, NJ, US
Brexit lobby struggles to
offer real democratic gains
Sir, John Redwood’s rather
underwhelming, rhetorical argument
for the UK leaving the EU boils down to
a desire to “restore democracy” and its
“powers of self-government” (“We
Tories are all Eurosceptics now”,
Comment, January 9).
Leaving aside how the UK, as a
medium-sized economy, could hope to
carry much clout in the World Trade
Organisation or at climate conferences,
I wonder how more democratic the UK
would be in the event of Brexit. It is one
of the most politically centralised
countries in Europe with relatively
little power devolved to local
authorities, an unelected head of state,
an unelected upper chamber and an
archaic first-past-the-post electoral
system. Since none of these features
can be blamed on EU membership,
would Mr Redwood care to argue how
Brexit might make the UK more
democratic rather than simply how it
might empower a Tory government?
Charles Palmer
Assistant Professor of Environment and
Development, London School of Economics
London WC2, UK
Every January the window displays of
bakeries all over France change
drastically. For perhaps the only time
in the year, the eclairs, chocolate-and-
buttercream layered opera cakes and
fruit-topped pastries take a back seat.
In their place the galette des rois, or
kings’ cake, comes to the fore.
These golden pastry discs, with a
leaf or other motif scored into their
glazed tops, have their origins in
ancient Rome, according to France’s
agriculture ministry. Later, Catholics
adopted them and used them to
celebrate Epiphany. Hence kings’
cake.
It has survived France’s modern-day
laïcité — the idea of total separation
between church and state that has
also provided the rationale for
measures such as the 2004 law that
prohibits the wearing of religious
symbols in public primary and
secondary schools. Indeed, the galette
has prospered.
They used to be sold to eat solely on
January 6, the day of Epiphany. But
Nathalie, who works at the bakery on
the ground floor of the building where
I live, says that in recent years the
cakes have been in demand almost
until the end of the month. It’s the
same story in the other four bakeries
on my street, as well as in others all
over the capital. Many even start
selling galettes in December.
Last Sunday Nathalie told me that
25 people had pre-ordered family-
sized versions serving 10 people or
more. Her customers included
Protestants, Catholics and Muslims,
dependence on petrodollars is over.
Fourth, as consumers’ confidence
remains upbeat, capital expenditures
will experience a facelift as well. Fifth,
the low correlation between US and
Chinese growth will sink in and the US
markets can lead the divergence
between developed markets and the
Chinese one.
Lastly, given the room for
manoeuvring that the central
authorities in Beijing have, I still doubt
that the Chinese will experience a hard
landing — even if I believe that the
Japanese business people
want UK to stay in EU
Sir, As a supplier of services to over 70
Japanese companies across Europe, I
am not at all surprised that Toyota
does not intend to move
manufacturing away from the UK in
the event of a Brexit (January 12). The
key point to bear in mind is that
Toyota’s European headquarters are
already in Belgium.
What should be of concern is what
will happen to the rest of the major
Japanese companies, more than half of
whom have their European
headquarters in the UK, and how any
changes in their location might impact
the fact that the major share of
employees of Japanese companies in
Europe and of Japanese investment in
Europe has been in the UK.
Judging by the mood of the 200 or so
Japanese business people at the UK
Japanese Chamber of Commerce new
year party last week, the overwhelming
wish is for the UK to stay in the EU.
Japanese business people would
much rather their companies were
based in the UK, but if the UK is no
longer in the EU, the straw poll I took
suggests that there will be a gradual
drift of European HQs away from the
UK — and with it related jobs,
investment and taxes — and, most
importantly for suppliers like my
company, the locus of purchasing
decisions will also shift.
Norwich, where my company is
based, is two hours away from London
but only one hour away from
Amsterdam, so I am making
contingency plans accordingly. I
assume I am not alone in this.
Pernille Rudlin
European Representative, Japan
Intercultural Consulting
Managing Director, Rudlin Consulting
Norwich, Norfolk, UK
A beach, bracing sea air
and 1GB of free WiFi
Sir, Does Jonathan Margolis also judge a
book by its cover rather than reviews
and the content (“Can a tech hub be in
the back of beyond?”, Talking Tech,
January 11)? Some of “God’s waiting
rooms”, like the one I live in, are now
rated among the top 10 fastest-growing
UK digital hubs. Why? Having been in
the backwaters for so many years we
are often among the first to have
superfast broadband, essential for
entrepreneurs. Furthermore, the pace
and quality of life allows you time to
develop your creative ideas even while
walking along the beach, where you
can access free of charge not just the
sea air but also 1GB of WiFi.
Monica Seeley
Bournemouth, Dorset, UK
atheists and agnostics. “Everyone eats
galette des rois,” she says. “It’s no
longer a religious thing.”
That change is celebrated by Alain
Mergier, a sociologist. “It’s a French
ritual anchored in history and religion
but whose value today transcends
religion,” he told me. “You no longer
eat the galette des rois because you are
Catholic: you eat it because you are
French.”
In a city still recovering from last
year’s terrorist attacks — first a year
ago, when Islamist gunmen attacked
the offices of satirical magazine
Charlie Hebdo and a kosher
supermarket; then in November,
when 130 people were murdered in
and around the city — it is a comfort
that a tart laden with religious
symbolism has evolved into
something that unites rather than
divides.
One secret to the galette’s success is
easy to explain: it is simply delicious.
In France, they come in two basic
forms. The first, which is common in
the south, is a ring of sweet bread
decorated with green, red and orange
fruit. The second type, which is the
one sold in Paris, is made from layer
after layer of flaky puff pastry filled
with frangipane or, in some cases,
apples. The moist filling complements
the dry, flaky shell, and the two
combine in the mouth to produce an
exquisite bite.
A second reason for its survival and
popularity is that it has adapted with
the times. Traditionally it was made
with a single dried broad bean, or fève,
Wednesday 13 January 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
renminbi’s slide will continue —
despite the expanding discrepancy
between onshore and offshore
renminbi prices.
The Earth still orbits the sun and as
the dusk is followed by the dawn any
obfuscation and distortion that affirms
market inefficiencies will become a
stepping stone to the reality that
unpredictability is finite.
John E Charalambakis
Managing director, BlackSummit
Financial Group
Nicholasville, KY, US
An evolution of rights
through the ages
Sir, Colin Lyle (Letters, January 11) and
Dominique Moïsi (“A year after Charlie
Hebdo, France is in need of vision”,
Comment, January 7) both seem to
read into the old texts ideas that belong
to a much later age.
Magna Carta is undoubtedly the first
in the battle for rights. However, these
were confined to the rights of the
barons and “all free men”.
In 1215 the signatories had no idea,
let alone intention, of granting those
rights to their villeins. But the 40th
clause — “To no one will we sell, to no
one deny or delay right or justice” —
gives the charter its entitlement to
“Great”.
It is only in 1787 that the US
constitution advances a few steps
further in this matter of rights, but
again the framers had no intention of
extending these rights to slaves.
However, the full effect of the
American Revolution culminated in
1798 with the “Declaration of the
Rights of Man and of the Citizen”
proclaimed by the French Revolution.
Its universality is stated in its first
article itself: “Men are born and remain
free and equal in rights.”
While Mr Moisi is right about the
French contribution to rights, it must
be remembered that these are civil
rights.
The idea of “human rights” is a much
later phenomenon as Mr Moisi admits
when he writes of “the country that
invented human rights”. But that
invention came only in the modern
period and is enshrined in the formal
UN charters.
Gautam Pingle
Hyderabad, India
Undergraduates also
loved a good prank
Sir, Lucy Kellaway’s entertaining article
“Office pranks are no laughing matter
to young workers, (Comment, January
11), reminds me that an earlier
generation of university students was
also given to pranks.
It is reported that a group of
Cambridge engineering
undergraduates dismantled a small
motor car, smuggled the pieces on to
the roof of the Senate House overnight,
reassembled the vehicle and got away
undetected. It took the authorities
several days to decide how to get it
down.
But, like Ms Kellaway’s colleagues,
the present generation does not seem
to find such activities to be
entertaining.
Robert Gasser
Junior Proctor, Oxford university 1968/69
Oxford, Oxon, UK
inside. Under the watch of the
Catholic Church, that morphed into a
small porcelain baby Jesus. At some
point the inevitable happened: Jesus
turned plastic.
In today’s France, however, you are
much less likely to come across a baby
Jesus — whether porcelain or plastic.
Instead, bakers tend to use a small car,
an animal or even a figure borrowed
from one of the Marvel comics
pantheon of superheroes.
In the case of the bakery downstairs,
this year’s motif is Droopy, the 1950s-
era cartoon dog — a fact that I
discovered at the weekend, when I
invited friends over for galette (no, I
didn’t win it).
The presence of a little figure is
essential to the galette’s appeal:
whoever receives the slice
containing it is appointed king for the
day, which is why bakeries now sell
the cakes complete with a golden
paper crown.
To ensure fair play, the youngest
child in the gathering sits under the
table and calls out names to dictate
the order in which everyone is to be
served the freshly cut slices.
The only person with no chance of
winning the prize is the president. The
country’s association of bakers
presents a giant galette to the Elysée
Palace each year but it is fève-less.
France did away with its monarchy
centuries ago; the nation, and the
bakers’ association, are clearly
determined to keep it that way.
adam.thomson@ft.com
Wednesday 13 January 2016
OPINION
Jean-Claude
Piris
W
ith David Cameron
promising British vot-
ers a referendum on EU
membership as soon as
this summer, the practi-
calities of leaving are every bit as impor-
tant as the “longstanding and sincerely
held” principles that the prime minister
attributes to Eurosceptics.
Departure will not be easy. The Lisbon
treaty allows for two years of negotia-
tions before withdrawal; Britain would
probably need longer as it would face at
least four significant legal challenges.
First, it would have to adapt legisla-
tion. The UK would be liberated from all
EU law, including Europol and the Euro-
This turmoil is
the result of the
Fed’s blunder
ECONOMICS
Martin
Wolf
B
ull markets, it is said, climb a
wall of worry. There are cer-
tainly plenty of reasons to
worry. But markets are no
longer climbing, which indi-
cates the bull market is dead. Since mar-
kets are already highly valued, that
would not be surprising.
Standard & Poor’s composite index of
the US market has in effect marked time
since June 2014. According to Robert
Shiller’s cyclically adjusted price/earn-
ings ratio, the US market has been sig-
nificantly more highly valued than it is
at present only during the disastrous
bubbles that burst in 1929 and 2000.
Professor Shiller’s well-known measure
of value is not perfect. But it is a warning
that stock market valuations are
already generous and that a continued
bull market might be dangerous.
Still more important, a portfolio
rebalancing is under way. The most
important shift is in the perceived eco-
nomic and financial prospects for
emerging economies. As a result, capital
is now flowing out of emerging econo-
mies. These outflows are driving the
strong dollar. Given that, the US Federal
Reserve’s decision to tighten monetary
policy looks like an important blunder.
In its new Global Economic Prospects
report, the World Bank brings out the
extent of the disillusionment with (and
within) emerging economies. It notes
that half of the 20 largest developing
country stock markets experienced falls
of 20 per cent or more from their 2015
peaks. The currencies of commodity
exporters (including Brazil, Indonesia,
OPINION
Gautam
Malkani
I
f you are reading this article online,
the chances are you are not actually
you. You are probably a little
smarter than you really are. Wit-
tier, more adventurous, doubtless
better looking. Maybe you are a differ-
ent gender, even a completely different
species or some other fashion of alter
ego. Either way, the internet has allowed
all of us to actively create and manage a
portfolio of personae. But before the
internet there was David Bowie, the
man who made alter egos an art form.
His constant reinventions meant that
his death this week at the age of 69 was
met with genuinely intergenerational
grief. From Ziggy Stardust to the Thin
Brexit is the easy bit
pean arrest warrant. National laws
adopted to implement EU directives
would have to be reviewed and abro-
gated, modified or retained. EU treaties
with third countries would cease to
apply to the UK.
Second, the UK would have to decide
what to do about the 2m Britons living in
EU countries who would lose the advan-
tages of the single market and EU citi-
zenship. Those with permanent resi-
dency in EU states could stay, thanks to
the European Convention on Human
Rights; others may have to leave. Agree-
ments with the EU would be needed to
protect citizens and companies but the
UK would have to negotiate with the EU
as a whole rather than with each of the
27 states. If it imposed restrictions on
the rights of EU citizens to live in the UK
(east Europeans, say), Britons would
face equivalent difficulties across the
entire union.
Third, Britain would have to try to
Malaysia, Russia and South Africa), and
of big developing countries subject to
rising political risks (including Brazil
and Turkey), fell to multiyear lows both
against the US dollar and in trade-
weighted terms.
Global investors withdrew about
$52bn from emerging market equity
and bond funds in the third quarter of
2015. This was the largest quarterly out-
flow on record. Net short-term debt and
bank outflows from China, combined
with retrenchment in Russia, accounted
for the bulk of this; but portfolio and
short-term capital inflows dried up else-
where in the third quarter of 2015. Net
capital flows to emerging and frontier
economies even fell to zero, the lowest
level since the 2008-09 crisis (see
chart). An important feature is not just
the reduction in inflows but also the
sheer size of outflows from affected
economies.
What lies behind this? The pull from
the expected tightening of US monetary
policy is one reason. Another is the
impact of falling commodity prices on a
number of emerging economies, includ-
ing Russia, Brazil and South Africa. Yet
another factor is geopolitical instability,
notably in the Middle East. Corruption
scandals tend to emerge when the eco-
nomic tides go out; it is not surprising
therefore that Brazil’s leadership is
embroiled in a big and spreading scan-
dal. China’s President Xi Jinping is seek-
ing to clean the stables — but such a pur-
suit of corruption itself damages confi-
dence.
Yet the most important reason of all is
realisation of the deteriorating perform-
ance of the emerging economies — in
cyclical and, more significant still,
structural terms. (See chart.) Of the five
Brics (Brazil, Russia, India, China and
South Africa), only India is experienc-
ing a revival. Worse, on average, about a
third of the slowdown among the 24
largest emerging economies between
Now everyone can be Ziggy Stardust
White Duke, Bowie moved through his
myriad alter egos on fast-forward, fet-
ishising a future he kept reshaping.
Even in our accelerated digital age,
whenever we arrive at new ways of
being, it seems that Bowie mastered
them before us.
Part of the reason Bowie resonates so
strongly is because we are all basically
Ziggy Stardust now, liberated by digital
technology to be whoever we want to be.
In 2013, when this godfather of reinven-
tion engineered the surprise comeback
of the decade, the internet allowed
many people to instantly refashion
themselves as long-time Bowie fans.
That same year, a UK government
report entitled “Future identities:
changing identities in the UK” said:
“One of the most significant observa-
tions of the impact of online identities is
the way that some people can feel that
they have achieved their ‘true’ identity
for the first time online.” Bowie allowed
★ FINANCIAL TIMES
Comment
preserve its trade with the EU. It would
need to adopt new customs laws and tar-
iffs and re-establish controls at borders
(including with Ireland). Under World
Trade Organisation rules, the UK would
have no more access to the single mar-
ket than would China. Goods and serv-
ices would be subject to EU tariffs. In
The UK would face
economic uncertainty until
new agreements are reached,
which could take a decade
some competitive markets, such as car
parts, these would damage UK export-
ers. An agreement with the EU would,
therefore, be needed urgently. Access to
the single market would come at a cost
— financial and political. Norway and
Switzerland make significant payments
Vanishing act
Emerging markets capital flows ($bn, 4-quarter sum)
Total net flows
Other inflows
Portfolio inflows
FDI inflows
FDI outflows
Portfolio outflows
Other outflows
2001 03 05 07 09
Source: World Bank
2010 and 2014 was structural. A partic-
ular concern is the decline in the rate of
growth of “total factor productivity” — a
broad measure of efficiency. Also wor-
rying is the slowing growth of trade,
itself partly a result and partly a cause of
weaker growth. Globalisation is losing
dynamism.
China is much the most important
emerging economy. Market turmoil has
reduced confidence in the competence
of its leadership. But it is vital to under-
stand that its problems are not amena-
ble to any quick technocratic fixes. The
economy is extremely unbalanced, with
Another set of credit
bubbles is popping. This will
leave a legacy of financial
shocks and bad debt
countless social misfits to achieve this
same state without the help of phoney
social media profiles.
Another Bowie schtick that digital liv-
ing has made us all more accustomed to
is the cut-up method, which he bor-
rowed from the writer William Bur-
roughs and artist Brion Gysin. But
Despite Bowie’s excess, this
was a man who took in
many more lines of
literature than cocaine
whereas Burroughs and Gysin used scis-
sors to splice fragments of text together,
Bowie’s fondness for technology led him
to co-develop a piece of software and kit
called the Verbaliser. On display at the
V&A’s “David Bowie is” exhibition in
2013, the Verbaliser seemed to embody
to the EU budget. The union insists, too,
that agreements giving access to its
internal market ensure a level playing
field and are matched by free move-
ment of labour.
Fourth, Britain would have to develop
trade with the rest of the world. EU
agreements on goods or services (such
as financial services) cover about 60
countries and 35 per cent of world trade.
These would no longer apply to the UK.
Britain would benefit from the WTO’s
market access rules — but these are
modest, especially on services, which
account for a significant chunk of UK
exports. Britain would thus need to
negotiate agreements from scratch, yet
it has employed no trade negotiators
since 1973. Reaching deals that are as
beneficial for the UK as those that exist
for the EU would be hard because the
union is the world’s biggest exporter
and importer of goods and services and
so enjoys huge bargaining power.
Structural shift
GDP growth in developing countries (%)
Actual growth
1500 Potential growth
1000
-500
0 4
-500
-1000
11 13 15 2000
incredibly high savings rates, wastefully
high investment rates and high debt.
A natural way to solve this problem
might be to allow capital outflows, a big
depreciation of the renminbi and so a
re-emergence of large current account
surpluses. But such a “solution” would
threaten the stability of the rest of the
world economy, particularly since the
eurozone and Japan have already cho-
sen much the same option. Beijing is
resisting the pressure: gross foreign cur-
rency reserves have fallen by $660bn
(17 per cent) since June 2014. Yet, if this
continues (and it surely will) the
authorities will have to tighten outflow
controls, which would undermine
reforms; or let the exchange rate slump,
which would destabilise the world.
What is happening in developing
economies directly affects the lives of
many billions of people. It is also of glo-
bal economic importance. Another set
the way the cut-up and collage move-
ments foreshadowed modern day sam-
plers and digital mash-up culture — not
to mention an online reality that gets
snipped into pieces with clicks instead
of scissors.
Bowie’s debt to Burroughs and other
writers and thinkers was a striking part
of the V&A exhibition, with paperbacks
hanging from the ceiling to represent his
literary influences. Despite the rock
star’s obligatory predilection for excess,
this was a man who took in many more
lines of literature than cocaine. His 1974
Diamond Dogs tour grew out of
thwarted efforts to stage a musical
based on Orwell’s 1984, while songs such
as “The Supermen” were inspired by
Nietzsche. Just like his jaw-dropping
alien drag costumes, Bowie wore his
intellectual aspirations openly, as did
other artists of the 1960s and 1970s such
as Patti Smith and Jim Morrison.
Nowadays, nobody would dare refer-
In the event of Brexit, therefore,
the UK would find itself stuck between
a rock and a hard place, struggling
to reconcile its political and economic
interests. It would have to choose
to be bound by EU single market laws
or face reduced access to a vital
market. Until agreements are reached —
which could take up to a decade — it
would be beset by economic uncer-
tainty.
The consequences of leaving would
reach beyond the UK economy. For
Europe’s role in the world, the political
costs would be high. Those who decide
— the voters — should consider carefully
whether the cost of Brexit, in terms of
prosperity and security, is one they are
prepared to pay.
The writer, a former director-general of the
Council of the European Union’s Legal Serv-
ice, is author of ‘If the UK Votes to Leave’,
published by the Centre for European Reform
8
6 rent and past performance ought not to
2 Managed revenue
0
05 10 14
of credit bubbles, that in emerging econ-
omies, is loudly popping. This is going to
leave a legacy of financial shocks and, if
mishandled, bad debt.
Yet cleaning up the aftermath of
financial mistakes — a depressingly
familiar experience — is just a part of the
challenge the world confronts. Equally
important is finding a powerful new
engine of demand as old ones splutter
and die. It is not at all obvious where this
is to be found. But the rest of the world is
hoping, probably over-optimistically,
that the US will provide what it seeks.
Unfortunately, it will not do so. It would
not have done so even if the Fed had
chosen not to tighten. The adjustment
ahead for a world economy so addicted
to credit bubbles is going to be difficult.
It will probably be no outright disaster.
But it is not going to be much fun either.
martin.wolf@ft.com
ence Rimbaud or Schopenhauer in a
song lyric for fear of being branded a
pretentious prig. Bowie was probably
the last big rock star to pull off that kind
of thing. Yet, once again, he seemed to
presage another key aspect of digital liv-
ing that the rest of the world needed the
internet to help us catch up with.
Thanks to the web, being clever is cool
again, not just because Silicon Valley has
made rock stars out of geeks, but
because being schooled up no longer sig-
nifies Saturday nights spent swotting
away in the library — it means you’re
plugged in.
Bowie was known for his tech-savvi-
ness, launching his own internet service
provider, BowieNet, way back in 1998.
But he was not simply “a man ahead of
his time”, he was a man who didn’t need
the technology he fetishised in order to
anticipate 21st-century digital life.
gautam.malkani@ft.com
13
When it takes
a short-seller
to catch a
financial thief
BUSINESS
John
Kay
T
he particular skill of
Gotham City Research, an
investment fund cum
research group, is finding
shares that are about to go
down. In 2014 it made two big calls.
One was Spanish WiFi provider
Gowex, whose founder, Jenaro García
Martín, admitted fraud within days of
publication of the Gotham City report;
the company filed for bankruptcy.
The second, a firm of ambulance-
chasing solicitors called Quindell, took a
little longer to unravel, after it success-
fully sued for libel in the UK courts.
(Gotham City did not bother to defend
itself: because of the history of egregious
libel judgments in English courts, their
judgments are often unenforceable in
the US.) Since then, Quindell’s accounts
have been restated, its founder Rob
Terry has gone, the Serious Fraud Office
is investigating.
The doyens of successful activist short
sellers are Jim Chanos, who helped bring
down Enron, and David Einhorn, who
campaigned against Allied Capital for
seven years (and survived an SEC
inquiry into his own activities) before
eventually making millions on the
trade.
The epic battle over Herbalife contin-
ues. The company provides nutritional
supplements through a network of dis-
tributors. Friends, such as Carl Icahn,
call the company a multi-level market-
ing organisation. Enemies, notably Bill
Ackman’s Pershing Square, describe it
as a pyramid-selling scheme. At the
moment Herbalife seems to have the
upper hand; its stock is back where it
was when Mr Ackman began his cam-
paign; Pershing Square was down 20 per
cent in 2015.
Reasonable people can disagree about
a company’s prospects but, in a properly
functioning financial market, its cur-
recognition and related
company transactions are
widespread practices
be the subject of much dispute. Yet his-
tory is littered with lossmaking compa-
nies that were kept alive for years by
accounting chicanery. Lucy Prebble’s
musical play Enron opens with a scene in
which Jeff Skilling, chief executive of
Enron, toasts his company’s regulators
for allowing future earnings from long-
term gas contracts to be booked as prof-
its straight away. The anticipated prof-
its, of course, never materialised.
Law partnerships traditionally
accounted conservatively for work in
progress, but Quindell understood that
a listed limited company could value
unbilled revenues aggressively. Even
Gotham City struggled to penetrate the
transactions between the network of
companies controlled by Mr Terry and
his associates.
But managed revenue recognition
and complex related company transac-
tions are widespread practices. Compa-
nies whose basic integrity has never
been in question have used such devices
to generate the smooth paths of earn-
ings growth their shareholders prefer.
When contracts extend over many
years, there is no simple answer to the
question of when to recognise the profits
it generates. It is likewise not always
easy to say whether two associated busi-
nesses are under the same control and
should be consolidated, or are different
entities, so that transactions should be
at arm’s length. These were major issues
in the banking crisis of 2008.
Regulatory difficulties do not end
there. In his book on the Allied Capital
affair, Mr Einhorn identifies a central
problem: “The authorities really don’t
know what to do about fraud when they
discover it in progress.” Official action
inevitably damages both the business
and its share price, and no agency will be
right all the time. Short selling hedge
funds are not right all the time either,
but when they are wrong they lose their
own money. The business of trying to
take down an active trading company,
with consequential losses for foolish
investors and innocent employees, is
hard to admire: but it is equally hard to
deny that Gotham City performed a
necessary and useful public service.
johnkay@johnkay.com
14 ★ FINANCIAL TIMES Wednesday 13 January 2016

BUSINESS LIFE

Small print
Much has been written about the “gig
economy” and its potential to reshape
reveals anxiety the world of work, but for my money
the most revealing is the 12th clause in
Task Rabbit’s terms and conditions.
of gig economy Task Rabbit is an online platform
that connects time-poor customers
overlords with time-rich workers (taskers) who
do chores like cleaning or gardening for
a fee. The T&Cs insist that Task Rabbit
does not employ the taskers and
moreover says the client “agrees to
indemnify TaskRabbit and its affiliates
from any and all claims, liabilities and
reasonable costs” if the company is
ever wrongly held to be the employer.
In other words, says Jeremias Prassl,
an Oxford university law professor who
pointed out this clause to me, the
the gig economy seem to fall into a
legal no-man’s-land, not quite meeting
the definition of employees because
they generally choose their hours, but
not quite independent contractors
either because the online platforms
exert control over many elements of
their work. As a frustrated San
Francisco judge wrote in one of these
ambiguous cases: “The jury in this case
will be handed a square peg and asked
to choose between two round holes.”
The companies are frustrated too.
The chief executive of Upwork, an
online work marketplace, once told me
his company had a “classification
algorithm” to predict which
employment status lawyers might
assign to any given worker. He hoped
‘
was only when a delivery company
called City Link went bust that the Let’s launch in . . .
public realised a quarter of its
workforce had been hired on “self-
employed” contracts, paying them a Kyoto, Japan
piece rate per delivery and making
them buy their own uniforms.
Terms and
conditions
Britain is a useful example because it
already has a third employment
classification similar to the one
reflect a proposed in the US. This “worker”
growing status, somewhere between employee
and self-employed, has not reduced the
disquiet wrangling and uncertainty over the
over how to issue. Instead it has just become
another legal status to argue over.
define an Last year, the retailer Sports Direct
employee was threatened with legal action after
most of its staff missed out on bonuses
in law

platform seems to be saying to its
customers: we are not the employer of
these people doing your chores for you,
but even if a court decides otherwise,
we’ll send our lawyers’ bill your way.
The small print is a sign of the
growing anxiety inside the companies
powering the gig economy, several of
which are being sued for classifying
workers as “independent contractors”
when claimants say they should really
be classed as employees, and so owed
the minimum wage, expenses, rest
breaks and the like. Task Rabbit
pointed out to me that it is not
Sarah O’Connor embroiled in any law suits, unlike its
peers, but clearly it is worried about
Onemployment being tarred with the same brush. The
most important legal battle will come
’
regulators would redraw laws to do because the company classed them as
away with these “miserable processes workers, not permanent employees. iStock
of the 19th century”. Meanwhile a British trade union is Population 1.5m
Some in the US want to do just that. suing Uber, claiming the drivers should
Two Democrat heavyweights, Alan be treated as workers. Time by bullet train to Tokyo 2 hours 17 minutes
Krueger, who formerly chaired the The lack of clarity is bad for Universities and vocational colleges 38
Council of Economic Advisers in the employers as well as workers, as the
White House, and Seth Harris, former UK’s coalition government
deputy Labor secretary, last month acknowledged in 2014 when it ordered In tourist guides and airline foster innovation. At another
proposed the idea of creating a third a review. The results were never posters, Kyoto is pitched as level, it amplifies some of
employment status, a halfway-house, published; a government insider says the purest wellspring of the many challenges faced
that would give workers in the gig no one had the appetite to open up that traditional Japan: a kimono- by foreign businesses and
economy some — but not all — of the “can of worms”. scape of wood, lacquer and investors attempting to
rights and protections of employees. For policymakers in the US manicured stone gardens. launch in Japan or feed off
It sounds sensible to come up with a grappling with whether (and how) to Behind all that is a hub of its expertise.
21st century solution to a 21st century reshape employment law, the UK could engineering, technology They play a long game in
problem but while the gig economy is offer some useful lessons on what not and biotech that has led Kyoto, and there is no use
new, the problems it brings are not.
Neither, come to that, is this solution.
to do. In the meantime, the rest of us
should probably read the T&Cs we
Japan’s start-up sector for
more than half a century.
expecting to do otherwise.

to a head in June, when ride-hailing
service Uber faces a landmark class-
action lawsuit in California.
The trouble is that many workers in
Family businesses. John Reece, Reece Group
We have had trouble classifying usually swipe past on our phones.
workers for decades, particularly in The case for: Japan’s most
unglamorous sectors such as sarah.oconnor@ft.com cherished industrial skill —
construction and trucking. In the UK, it Twitter: @sarahoconnor_ obsessive perfection of
monozukuri or “thing-
making” — has its origins in
Kyoto. From textiles,
ceramics, temple-building
and card printing, the city
has evolved into the engine-
room of Japan’s advanced
Support for start-ups: the
sheer volume of successful
companies to emerge from
Kyoto University has given
the local government an
incentive to nurture. A
government-run incubation
programme assembles
academic experts and
business leaders as
consultants on projects, and

In the footsteps of a Victorian great

materials industry,
information technology,
electronics and batteries.
The city that hatched
global technology giants
such as Kyocera, Omron and
Horiba was also the first in
Japan to have a venture
capital company, Kyoto
Enterprise Development.
The link between innovation
and the need for smart,
Where weapons magnate patient capital to fund it, say
locals, has always been
Lord Armstrong once clearest in Kyoto. For start-
toiled, a family-led group ups with bigger ambitions,
proximity to the specialist
maintains an engineering engineering and industrial
tradition, says Chris Tighe base in Kansai is vital.
Cementing all those
qualities is Kyoto’s
tries to match those with
sources of funding.
Recent efforts to link
capital with start-ups in
tech, energy and biotech in
the region include the Kyoto
University Venture Fund, set
up in 2007, expanded
significantly in 2013 and
managed by Miyako Capital.
Also influential has been
Kyoto Research Park, which
supports start-ups with
disruptive technologies.
Local hero: The city has
many success stories but
the main contender has to
be Nintendo’s Super Mario
— one of the most valuable
digital properties on the

W
ere Lord Armstrong,
leading engineer of his
day, to time travel from
the 19th century to his
site in Newcastle upon
Tyne today, he would perhaps be
bemused. The Victorian armaments
magnate, philanthropist and owner of
Cragside, the first house in the world lit
by hydroelectricity, would see that his
grimy, noisy Victorian workshops,
which stretched along the river Tyne,
making guns and warships, have gone. A
sleek white building is on the same site,
next to the much cleaner river.
The immaculate entrance hall of
today’s Armstrong Works, new home of
the Reece Group, is strikingly different
from heavy engineering’s oil-rag past.
And yet if the inventor of the hydraulic
crane and the breech-loading gun were
to enter, what else would have changed
and what would feel familiar?
Glancing into the offices housing
Reece Innovation, for instance, he
would recognise engineers working, just
as he did from the 1830s, to turn embry-
onic ideas into industrial products.
Passing a wall emblazoned with a
Union Jack and “Made in the UK”, the
Tyneside inventor would enter Reece
Group’s hangar-like manufacturing hall.
Here, locally invented and designed
products are still made for today’s inter-
national markets, from defence and
power generation to oil and gas, subsea,
construction and medical.
Lord Armstrong would also see John
Reece, the group’s chairman and, Mr
Reece hopes, recognise a kindred spirit
even if UK manufacturing has changed.
“What can you do that compares with
creating some fantastic products in a
place like this?” asks Mr Reece, gestur-
ing to the vast building.
However, innovation on Lord Arm-
strong’s scale would be an impossible
solo achievement today, Mr Reece says
— like one person inventing the iPhone.
As individuals, he says, “they could take
breathtaking steps forward in engineer-
ing — that’s very hard to do now”.
Nor is the UK still industrially domi-
nant. “Britain was the land of opportu-
nity for heavy engineering in the 19th
century — unfortunately, it’s not now.”
The UK has had to give up on labour
intensive activities, such as commercial
shipbuilding, he says, but technological
change and greater automation mean
there are opportunities to win back
work. The UK can still do great engineer-
ing, but “it’s got to be high value added”.
An example from Reece is the Spark
roller, an attachment for military vehi-
cles that explodes mines buried in front
of them.
Mr Reece, a 54-year-old who enjoys
cycling and mountaineering, perches on
a desk as he expounds on British engi-
Past and neering. Many companies, he says, are
present: British held back by timidity, “a lack of belief
manufacturing that they can be more successful and
has changed but bigger than they are”. Men like Lord
John Reece aims Armstrong displayed massive self-
to live up to confidence. Mr Reece too has convic-
some of the tion. “I believe in engineering busi-
legacy of the nesses. And I believe the north-east [of
Armstrong England] needs people like ourselves.”
Works Politically, the entrepreneurial zeal
Mark Pinder
that made the north of England a global
economic force in Victorian times is
back in fashion, with Chancellor George
Osborne’s Northern Powerhouse idea.
Lord Armstrong’s father was a pros-
perous corn merchant who wanted his
son to be a lawyer, but Mr Reece’s love of
engineering is inherited. Reece Group
was started in the 1980s by his late fath-
er Alan, a Newcastle University profes-
William Lane, maker of bespoke castings
Built to in the old Ironmasters area of
last Middlesbrough — once known as
Ironopolis — is Teesside’s last foundry. It
makes metal castings and ironwork for
William industrial, consumer and heritage use.
Lane, Director Stuart Duffy runs through
Teesside why he thinks the business has survived:
3 Stayed true to its roots while adapting
to change: “We kept to our original role
— a one-off jobbing foundry.”
3 Customer base is broad.
3 Retained key production techniques,
including hand working, but invested
too. “The process is the same as in
Victorian times apart from we melt by
electric induction furnaces.”
3 Key personnel have experience and
commitment; he and his right hand man
joined as apprentices 40 years ago.
3 Embraces technical challenge and
prides itself on looking for ingenious
solutions: “There’s no such word as can’t.
The Victorians had that same principle.”
sor and engineer, who along with univer-
sity colleagues applied the principles of
ploughing soil to the ocean bed. They
founded SMD and other businesses that
have made Tyneside home to global
leaders in subsea engineering.
Mr Reece, who studied mechanical
engineering at Cambridge university,
has led both SMD — no longer connected
to Reece Group — and Pearson Engineer-
ing, designer and manufacturer of com-
bat engineering equipment including
the Spark roller. This innovation has
won deals around the world, including
valuable US military contracts. Unlike
some of Lord Armstrong’s devices, it
saves people rather than killing them.
“We had the right product at the right
time; we saw the opportunity and abso-
lutely seized it,” he says. “We took a big
risk in developing a new product bec-
ause we thought that was what the cus-
tomer would want — when there was no
specific requirement from the cus-
tomer.” Use of the rollers in conflicts,
particularly in Afghanistan and Iraq,
contributed to an eventual £100m cash
pile for the Reece Group.
Mr Reece was not, however, tempted
to put his feet up. “We could have taken
the cash [but] we think we can do it
again,” he says. So Reece Group bought
the Armstrong Works in 2012 and spent
£20m on updating a facility that had
housed BAE Systems. The tank maker
had in 1982 replaced the buildings that
had housed Lord Armstrong’s engineer-
ing, shipbuilding and armaments em-
pire. At that site, he also produced
hydraulics for peaceful applications,
such as Tower Bridge, London.
Reece Group comprises engineering
companies employing nearly 500 peo-
ple, in businesses relocated from around
Tyneside, at the site where Armstrong
Works employed up to 25,000 men and
reputation as an academic
powerhouse. Kyoto
University, whose Shinya
Yamanaka won the Nobel
Prize for his invention of the
synthetic stem cell, is in the
world’s top 30. All this in a
city that ranks far and away
as Japan’s most beautiful.
The case against: The
further you travel from
Tokyo, the more Japanese
Japan becomes. At one level,
that has given Kyoto its
unique character: strong
self-belief in its skills,
superiority and ability to
Innovation to watch
boys. The group expects to report £60m Enhanced telepresence
turnover for 2015, having spent £3m on
LESLIE HOOK
research and development.
“We have to diversify to keep the busi-
ness ticking over,” says Mr Reece. “We Working from home may
are reflecting a similar strategy to what sound appealing but there
Lord Armstrong had, although on a dif- are often drawbacks.
ferent scale.” Diversification is espe- Missing out on office parties,
cially important given the global fluctu- failing to spot when a boss is
ations affecting engineering. One Reece irritable or not knowing
Group company based at the Armstrong when a colleague has
Works, Responsive Engineering, has left for lunch — the
suffered a drop in orders and declared remote worker is at a
job cuts because of falling oil prices. disadvantage.
In heavy engineering, issues such as Double Robotics
political manoeuvring over defence and proposes to solve this
worries over labour relations endure. In with a new version of
1871, Lord Armstrong struggled with a its telepresence
20-week strike by men fighting to cut robot, the Double 2,
their working week from 59 to 54 hours. which looks a bit like an
Mr Reece — whose employees’ terms iPad on top of a Segway
and conditions are vastly better — is un- steered by the remote
happy that one of his companies has worker.
opted for union recognition. “A kick in The Double 2 moves
the face of management,” is his verdict. faster than its
Lord Armstrong was a philanthropist predecessor, has a wide-
and heavily involved in workers’ educa- angle camera lens to help
tion. The Reece Foundation has given with navigation, and is
£15m over the past decade to support better at going over
activities from social initiatives such as bumps without falling
the UK’s biggest food bank to scholar- down (at $3,000 per
ships and technology facilities to machine, no one would
encourage more young people into engi- want to wreck one).
neering. This, Mr Reece hopes, will let There are other
them see exciting possibilities. It could collaboration tools trying
strengthen the region’s economy too. to help remote workers
“We were the leaders of the Industrial connect, such as Skype or
Revolution, this was the place to get stuff Slack. But co-founder and
done,” he says. Times have changed but chief executive David
engineering’s intellectual challenge Cann says that
endures. Then, the issue is making the the Double is
most of them: “You have got to be deci- about helping
sive and take risks but not at a level that workers regain
threatens the whole enterprise,” he says. the feeling of
“Opportunities are all over the place, being in the
lots of them,” he says.
planet. Rarely are the
qualities of technological
prowess, creativity and
globalisation so neatly
encapsulated.
What the locals say: Kyoto’s
hidden strength, says Toru
Kobayashi, chief executive
of Optex, which makes
sophisticated sensor
devices, is that it is not
Tokyo. “We are an anti-
Tokyo. The old capital of
Japan, but the capital of new
Japan.”
Leo Lewis
office and participating in
office life. Some users even
dress up their robots with a
shirt or a tie.
It is hard to measure
whether the Double 2
improves the
effectiveness of a
remote worker, but
Mr Cann points out
that “you can
measure that they
are logged in”. And if
you see a colleague’s
face rolling up to your
desk, “it removes the
question of whether they
are working or not”. He uses
the Double himself when he
has to work from home, he
adds.
The Double has been
popular with large
corporations, with about 40
Fortune 100 companies
using the robots, sometimes
for remote monitoring — of
the factory floor, say.
There are other
telepresence robots on the
market, such as the Beam
from Suitable Technologies,
but the Double is considered
to be relatively affordable.
Having a robotic
Double is still not
exactly the
same as being
there in person,
but it is one step
closer.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 15

ARTS

Rattle reaches for the darkness in Debussy OPERA

OPERA
Pelléas et Mélisande
Barbican, London
aaaae
Richard Fairman
Over the years Simon Rattle has been
drawn back to Pelléas et Mélisande time
and again. Debussy’s opera has that
effect on people. Its music and atmos-
phere seep into the soul, so that even
after staged productions in Los Angeles,
Amsterdam, London and Salzburg, Rat-
tle has felt the need to revisit it.
This latest encounter is taking the
form of an opera in concert with semi-
staging devised by his long-time collabo-
rator, Peter Sellars. Having started life in
Berlin, the project arrived in London at
the weekend — the latest of Rattle’s high-
profile appearances with the London
Symphony Orchestra, of which he
becomes music director in 2017.
In composing Pelléas et Mélisande
Debussy held up a kaleidoscope to Wag-
ner, viewing his music as impressionist
shards of colour and light. With its deep,
sonorous textures Rattle’s performance
came in at the darkest end of the spec-
trum. Has any conductor made the
opera sound more Wagnerian since Her-
bert von Karajan, Rattle’s illustrious
forebear in Berlin? Here was an awe-
some atmosphere of distant, shadowy
legend, a deep well of emotions surging
up from below. The LSO’s strings have
rarely sounded so rich.
Sellars’s semi-staging was economical,
notable mostly for its manifest violence
and a lot of overacting. A suggestion that
the kingdom of Allemonde is some kind
of police state had more to do with Sell-
ars’s brand of politics than Debussy.
In this pessimistic view of the opera
Gerald Finley’s Golaud, powerfully
sung, with every word clear, took on a
new dominance. Magdalena Kožená as
Mélisande and Christian Gerhaher as
Pelléas both offered high-class singing,
but it was difficult to believe in them as
the story’s innocent lovers. Mélisande
was played openly as a destructive force;
Gerhaher’s tortured presence as Pelléas
tended to come and go. With Bernarda
Fink as a deeply serious Geneviève and
Franz-Josef Selig a gruff Arkel, this was a
mostly well-chosen international cast.
It is only a year since the Philharmo-
nia and Esa-Pekka Salonen presented a
semi-staged concert performance of
Pelléas et Mélisande with an almost all-
French cast that arguably gave them the
edge. Rattle, though, emotional and
powerful, dug deeper than ever before —
due notice of glories to come in 2017.
barbican.org.uk
JA Z Z
Jasper Høiby’s Qualia
Vortex Jazz Club, London
aaaae
Mike Hobart
Jasper Høiby is best known as the bassist
at the heart of the power jazz trio Phro-
nesis, who have built an international
following on the rhythmic punch of
their razor-sharp routines. Here, the
Dane was debuting a new UK-based
quintet, Qualia, featuring a sax and
trumpet front line and a gentler aes-
thetic. The catchy themes and strong
moods remained, but now the interlock-
ing rhythms gained textural subtleties
from interweaving trumpet and sax.
The evening began with Høiby’s
vibrant upper-register bass ruminating
over an infectious low-register piano
drone. Drummer Corrie Dick delivered
a swish of brushes, the horns a simple
minor-key theme — the title “Folk Song”
summed up the mood — and then trum-
pet flutters answered. There were tenor
sax trills, a new theme emerged, was
harmonised and passed to piano. And
the evening had just begun.
Each tune was distinct and each
theme connected with its title. “Fellow
Creatures” featured a perky riff over a
rolling deconstructed shuffle, “Little
Song for Mankind” was built on a simple
repeated motif and in the second set
“Collective Spaces” was a rambling dia-
logue between trumpet and soprano
sax. The second set had opened with
calypso inflections and tricky bass,
while “Bass Riff” — a highlight — was a
wickedly angular through-composed
duet featuring bass and tenor sax.
Høiby’s new band kept the arrange-
ments tight, let the music breathe and
made the most of their distinctive
sound. Høiby always stamps his person-
ality on his projects, coaxing and cajol-
ing from within. Here, he meshed neatly
with the understated subtleties of drum-
mer Dick and pianist Will Barry. But the
masterstroke was blending Laura Jurd’s
brittle-but-centred trumpet with the
experienced Mark Lockheart’s warm,
airy and equally centred sax. They not
only sounded great together, but confi-
dently played off each other.
The band flowed from the outset.
With a packed Vortex urging them on,
they were flying high by the time
“Plastic Island” signalled the
evening’s end with body-swaying
rhythm and a prowling triple-time
riff on double bass. Pianist Barry
was finally unleashed on the encore.
A great gig; more so for a premiere.
vortexjazz.com
VIDEO: DAVID
BOWIE — MASTER
OF DISGUISE
FT arts editor Jan Dalley and
pop critic Ludovic Hunter-Tilney
reflect on the life and times of
the star, from his beginnings as
David Jones, through his many
reinventions to his powerful
last album, released just days
before his death
ft.com/bowie
Awesome: Simon Rattle
conducts ‘Pelléas et
Mélisande’ at the
Barbican. Below: Jasper
Høiby at the Vortex
Jazz Club
Tristram Kenton
Roger Thomas
Turandot
Metropolitan Opera, New York
aaaee
Martin Bernheimer
Ever since it was introduced here in
1987, Franco Zeffirelli’s staging of Turan-
dot has impressed — or distressed — as a
monstrous kitsch extravaganza. Never
has excess seemed so excessive.
Now overseen by David Kneuss, the
Met stage swarms with a gazillion inci-
dental figures, dancers, acrobats, extras,
magicians, muscle-flexers, scene-
changers and choral attendants, not to
mention the solo contingent. Flags are
constantly swung, capes twirled, sleeves
slung, masks swapped, fans snapped,
lights flicked, props flourished and
action — also inaction — mimed. The
impact is dizzifying. Even with Paolo
Carignani holding forth energetically in
the pit, sight often slights sound.
The Met flaunted this brand of oper-
atic showbiz on Monday, when Puccini’s
bizarre bonanza returned with an unfa-
miliar protagonist, Nina Stemme.
Widely regarded as the leading Wag-
nerienne of our day, she still commands
the power, sensitivity, verbal acuity and
authority to make the essentially
unsympathetic princess of legendary
Peking magnetic, even on a grotesquely
overpopulated stage. Still, it might be an
exaggeration to claim that this lofty, icy
challenge suits her as well as the nobler
Elektra and Isolde, both of which loom
in her immediate future here.
The soprano is partnered by Marco
Berti, an underrated tenor who exudes
dignity, rises nicely to mighty climaxes
and even manages to sing softly once in
a while. Anita Hartig lacks the silvery
top tones of an ideal Liù but conveys sac-
rificial vulnerability deftly. The dark-
timbered bass Alexander Tsymbalyuk
sustains imposing dignity as frail old
Timur, and Dwayne Croft leads a fine
masque trio suavely. Stationed far
upstage, Ronald Naldi manages to
project the platitudes of the ancient
emperor without forcing or croaking.
Incidental intelligence: the conductor
seemed so intent on maintaining
momentum that he swept over the cus-
tomary pause for applause after “Nes-
sun Dorma”. Puccini might have
approved. The tenor might not have.
To January 30, metopera.org

Acosta says farewell with a flourish

Tour de force:
DANCE Carlos Acosta
in ‘Elizabeth’
Elizabeth Andrej Uspenski
Linbury Studio, London
aaaae
Louise Levene

Carlos Acosta will give his final Royal

Ballet performances in Japan this sum-
mer, but his Covent Garden farewell to
the company takes place at the Royal
Opera House’s Linbury Studio this week.
The revival of Will Tuckett’s 2013
Elizabeth, a dance-drama based on the
life and loves of the Virgin Queen, is also
the swan song of the Linbury. The studio
is getting a much-needed makeover as
part of Covent Garden’s privately funded
£35m “Open Up” redevelopment, which
will also expand and beautify the main
theatre’s dismal box office area.
Tuckett’s choreographic career took
flight at the Linbury with hits such as
The Wind in the Willows, A Soldier’s Tale
and Pleasure’s Progress. Elizabeth shows
the same sure touch, assembling a first-
rate creative team. Martin Yates’s com-
missioned cello score is a serviceable
Tudor pastiche. The spare but sumptu-
ous backcloth of distressed gold leaf is by
turns dulled and burnished by Paule
Constable, whose virtuoso lighting
intensifies the wit, grandeur or melan-
choly of every vignette with the twitch of
a switch. Fay Fullerton, head of costume
for the Royal Opera House, hints at
doublets, stomachers and farthingales
with light, flexible fabrics that never
cramp the dancers’ style.
The production’s 90 minutes are given
real emotional and historical substance
by Alasdair Middleton’s elegant collage
of contemporary writings — many of
them by Elizabeth I herself. The texts
are brought vividly to life by Julia
Righton, Laura Caldow and Sonya
Cullingford who share the stage with
Zenaida Yanowsky’s Elizabeth and the
quick-changing Acosta, enjoying him-
self hugely as Essex, Raleigh, Leicester
and others.
Tuckett’s choreography plays to the
Cuban star’s strengths with lots of swiz-
zling pirouettes and big lifts, and the
multiple roles allow him to reprise his
greatest hits: his frisky Basilio, his
desperate Rudolf, his gormless Franz
and even a dark hint of his Messenger in
MacMillan’s Song of the Earth when he
duets with the dying monarch. This
mercurial tour de force makes a far
more fitting end to Acosta’s long Royal
Ballet career than his bloated and inept
production of Carmen.
He is well matched by Yanowsky,
whose pale beauty conjures the iconic
portraits and whose intelligent playing
makes perfect sense of Elizabeth’s
apparent contradictions: lover, scholar,
dancer, imperatrix.
To January 17, roh.org.uk

THIS EVENING’S TELEVISION & RADIO

TELEVISION victorious Russian troops in Paris, the

Empire of the Tsars (BBC4 9pm)
reaches War and Peace territory
tonight, as Lucy Worsley outlines the
historical build-up to BBC1’s pleasant
soap opera. But before Napoleon, the
Russians had Catherine the Great, a
minor German princess who may well
have had her husband murdered
before becoming the world’s most
powerful female ruler and dragging her
vast inheritance into the age of
enlightenment (though even she failed
to abolish serfdom).
She imported an English doctor to
give smallpox jabs, offering herself, her
son and her lover as guinea pigs,
employed a Scots architect, and invited
Capability Brown to advise her on her
passion for English gardens (he
declined). Her grandson commanded
Power and smallpox: Lucy Worsley
presents ‘Empire of the Tsars’
high point of the Romanov dynasty.
FILM
Stephen Rea, currently occupying our
screens in War and Peace and
Dickensian, can be seen in 1992’s
psychosexual paradox The Crying
Game (TCM 12.15am).
RADIO
The inimitable waxes nostalgic over the
irreplaceable in Barry Humphries:
Barry’s Forgotten Musical Masterpieces
(Radio 2 10pm). Australia’s gift to
civilisation recalls his anglicised Aussie
childhood (he actually saw his first
kangaroo in London Zoo) and plays the
music that enriched his childhood on
radio and records.
Martin Hoyle
16 ★ FINANCIAL TIMES Wednesday 13 January 2016

Shifting gears
A leading recruitment consultant, PageGroup - formerly known as Michael Page International - has sales
that are sensitive to the global economy, and operating margins that expand during periods of faster
growth. As a result, its shares tend to move in tandem with the FTSE 100 index but with larger swings

Twitter: @FTLex Email: lex@ft.com Share price performance Profitability

FTSE 100 index PageGroup share price (£) Ratio of operating earnings
to gross profit (%)
8,500 6.00 Target
has not yet been rendered obsolete by 30
Apple: 8,000 5.50 China currency:
more processing power or killer
test of endurance 7,500 5.00 down a peg
features from subsequent iterations. In
Apple’s sales pitch to worrywart 7,000 4.50
When Steve Jobs died in 2011, iPhone shareholders, that is the wrong sort of 4.00 20 A country’s currency does not just
sales were still doubling year on year. It iPhone endurance. 6,500 store value, it acts as a barometer of
is a safe bet that his successor, Tim 3.50 the nation’s economic health. China’s
6,000
Cook, is going to preside over the end 3.00 renminbi has started to fall more
of continuous growth. In quarterly 5,500 quickly in recent months. Pegging it,
earnings in two weeks, analysts still
UK ecommerce: 2.50
10 even loosely, to a rising US dollar is a
5,000
expect Apple to have sold 1m or more devil’s bargain 2.00 giant problem for China, particularly
phones than the 74.5m it achieved in 4,500 1.50 given its excess manufacturing
the same quarter last year, with A thought experiment: an omnipotent 4,000 capacity.
1.00
Chinese demand crucial. If it turns out demon takes over your brokerage Despite falling 8 per cent in two
that Apple has sold fewer, it will be a account, insisting that you put all your 3,500 0.50 0 years, the renminbi still looks
blow to the credibility of Mr Cook, who wealth in one stock. Worse, it limits 2006 07 08 09 10 11 12 13 14 15 16 2000 05 10 15 overvalued. Using a variety of
primed the market to expect growth. your options to UK ecommerce groups measures from investment banks such
FT graphic Sources: S&P Capital IQ, PageGroup; Thomson Reuters Datastream; FT research
But the timing hardly matters. If it is AO World, Boohoo and Just Eat. as Credit Suisse and Nomura, a
not coming this quarter, the decline is Brow furrowed, you tick through the reasonable estimate is that it needs to
priced in for the next one. key factors. Growth first. All three gave There are three ways to discern the FTSE, but with a greater spread of sail. global growth, no degree of fall 10 per cent to hit fair value.
So what? For all its “fanboy” trading updates yesterday. Just Eat importance of operational gearing to And third, listen to the management, preparation can shield PageGroup It needs to do so. As a sign of how
customers, Apple has some Jeremiah grew well over 50 per cent in the PageGroup, the recruitment long enough in the tooth to have seen a from the consequences. Only fast tight monetary conditions have been,
shareholders. Since it reported the second half of the year; Boohoo grew at company. First, look at its financial few downturns, and to know that high growth in fee income can lift that Chinese producer prices have fallen
most profitable quarter in corporate 45 per cent in the last third of the year; history. During an expansion, its operational gearing is a double-edged conversion ratio towards 30 per cent. consistently for four years. China has
history 12 months ago, its shares have AO World grew 35 per cent in the most “conversion ratio” (operating income sword. Yesterday’s trading update But the preoccupation with costs overbuilt its capital stock: 44 per cent
fallen 15 per cent. Yet the stock trades recent quarter. So Just Eat comes top. as a percentage of gross profit) can centred around slowing growth in the hints at the advantages that justify of gross domestic product still goes to
at just 10 times forward earnings. Strip It also has the slickest business hit a peak of 30 per cent compared to UK and Asia Pacific region, which Page’s premium rating. These include investment, significantly more than
out the massive cash pile and it trades model. Like Uber or Airbnb, its 16 per cent today. Approaching those together account for 40 per cent of an eschewal of acquisitions, which either Japan or South Korea at their
at less than 8 times. Investors know information infrastructure links a peaks again is key to justifying sales. Much of the management neutralises a significant source of risk peaks. In consequence, corporate
that the end of rampant growth is nigh. provider with a customer and takes a PageGroup’s heady valuation, which commentary focused on tedious detail in a highly cyclical industry. profitability is poor: net margins are
Having risen to well over 50 per cent bit of each transaction in return. It is on Monday night stood at 22 times about how costs are being kept All expansions endure soft spots, half those in other emerging markets.
of group revenues, of course the iPhone supremely capital light and can grow as trailing earnings. downwardly flexible, minutiae such as and markets signal many more crises Exporters are obvious beneficiaries
matters. But maturity does not mean fast as outlets can download its Second, eyeball the shares against standardising procedures and than occur. Normally, the global from a weaker renminbi. Not all of
extinction, and just because Apple has software. But the network effects it the index. They resemble a souped- centralising European support economy expands, which grows the them, though. Steel and aluminium,
become a phone company does not enjoys are not everything. If they were, up imitation of the FTSE 100, with a functions in Barcelona. The aim is to demand for recruitment services. If both struggling with excess capacity,
mean that it is all it ever will be. shares in US peer GrubHub would not correlation over 10 years of 70 per spend proportionately more on fee- markets are indeed crying wolf, are to be avoided; world steel prices,
The important metric for measuring have fallen 40 per cent last year. cent, but with PageGroup’s gyrations earners and less on support staff. yesterday’s 8 per cent fall in down 40 per cent in the past year, will
iPhone success over the next couple of Boohoo sells age-inappropriate twice as great. Recruitment is blown If the hysterical noises emanating PageGroup’s shares marks a buying not benefit from more Chinese exports.
years is not how many iPhones are sold clothing to teens without bothering by the same global winds as the from markets augur a real slowdown in opportunity. Consider instead industries that are
in a particular quarter — but how long with costly stores. Its returns on capital already internationally competitive,
those phones last. Apple hopes that are nearly as high as Just Eat’s — even such as telecoms equipment makers —
more consumers will switch to its new though it still has to manage inventory Chinese companies have 36 per cent of
upgrade programme, which and pay for warehouses. It also has a retail for capricious teens? With all the area of increasing focus for Wanda; last joint productions involving US studios the world market and Hong Kong-
incentivises them to buy a device every bigger, more established rival in Asos. savings you have? Speak up; the devil weekend the group said 2015 revenues and a local partner fall outside this listed ZTE has outperformed the MSCI
12 months. Part of the bull case AO World has to deliver and install awaits his answer. for its culture and tourism arm, Wanda quota and do not have to pay 14 per China index by 21 percentage points
outlined by Mr Cook three months ago bulky appliances, so growth requires Cultural Industry (which accounts for cent of box office takings to the state over the past year.
was the relatively small number of warehouses, trucks and drivers. As a 17 per cent of the top line), were up distributor. Wind turbine makers such as Spain’s
iPhone users who had upgraded to the result, its growth is so far profitless. But Wanda/Legendary: nearly a half year on year, against The Legendary deal offers Wanda the Gamesa have found penetrating China’s
iPhone 6 — fewer than 35 per cent. that can be turned to advantage; the group revenues up a fifth. Growth at opportunity to grow rapidly in what market very difficult. That will not
That cuts both ways, though. A king of all online retailers, Amazon, silver screams Wanda Cinema Line, a Shenzhen-listed remains a fragmented market. In 2014 change but Chinese manufacturers
recent survey by Accenture found that also has lots of capital-intensive subsidiary, was similarly racy. Wanda Media was the second-biggest such as Sinovel could challenge
the proportion of consumers who infrastructure. It makes for low returns Chalk up a win for Dalian Wanda. The Despite this high rate of growth, distributor, with just 3 per cent of the Gamesa internationally.
expected to buy a smartphone in the but also creates high barriers to entry unlisted Chinese conglomerate will pay China’s movie-goers are underserviced. local-language box office. By contrast, China’s weather vane has shifted. It
next 12 months had fallen to 48 per for potential rivals. $3.5bn for Legendary Entertainment, At the end of 2014 there were half as the lead studio in the US last year, needs a cheaper currency and will
cent from 54 per cent last year; the Valuation. Compare each with a the US media company behind such many cinemas in China as the US, Universal, had a one-fifth share, probably get one. The central bank will
drop was particularly severe in China. rival. Each dollar-equivalent of films as Jurassic World and The Dark according to EntGroup, a sector according to Box Office Mojo (greatly use some of its $3.3tn of foreign
Another survey by Mizuho found that AO World sales costs less than half of a Knight. The deal will be Wanda’s largest researcher. The number is set to grow. helped by Jurassic World, its top- reserves to manage the decline. The
81 per cent of iPhone users expected to dollar of Amazon’s. Boohoo is roughly to date, according to Dealogic. Content, too, presents opportunities. grossing film). only question is how fast this will be.
hang on to their next device for longer, on par with Asos. But Just Eat Founder Wang Jianlin has acquired Chinese production went from 91 films Buying Legendary will not just give
an estimated 27 months compared commands a premium to GrubHub. plenty of overseas trophies in recent in 2010 to 320 in 2014, accounting for Wanda exclusive access to a back
with 20 months. The iPhone 5 has Boohoo, then, wins by the numbers. years, but this move makes strategic just over half of total box-office catalogue of blockbusters; it will also Lex on the web
For notes on today’s breaking
demonstrated more staying power It is unique in its balance of growth, sense too. China’s entertainment receipts. Hollywood offerings are bring expertise. That has the potential stories go to www.ft.com/lex
than previous versions of the device; it profit and valuation. And yet, online market is growing rapidly and is an subject to a quota of 34 a year, but to add up to a much bigger win.

1010 Forecasts by
LOW
1010 -11
OW -6 1 0 1 0 990
-8 -1
3
LO Luxembourg Sleet 4 39
1000 Lyon Cloudy 8 46
4 17
5 Madrid Fair 10 50
5 7 3 0 Manchester Shower 5 41
7 Miami Fair 22 72
4 16 5 Milan Sun 10 50
5 26 Montreal Cloudy -6 21
8
4 4 Moscow Snow -1 30
5 6 10 Mumbai Sun 29 84
5 49 0 Munich Snow 3 37
6 1
7 6 New York Fair 0 32
H Nice Sun 14 57
9 6 10 5 Paris Fair 8 46
16
19 21 Prague Sleet 4 39
1020 Reykjavik Fair -4 25
17
Rio Thunder 31 88
Wind speed in MPH at 12 GMT 8 Rome Sun 14 57
Temperatures max for day˚C Wind speeds in PH 21 San Francisco Shower 15 59
Stockholm Snow -6 21
Today’s temperatures Strasbourg Rain 6 43
Abu Dhabi Rain 22 72 Belgrade Shower 8 46 Copenhagen Cloudy -2 28 Hamburg Sleet 4 39 Sydney Sun 27 81
Amsterdam Shower 7 45 Berlin Sleet 4 39 Delhi Sun 23 73 Helsinki Snow -11 12 Tokyo Fair 6 43
Athens Fair 16 61 Brussels Shower 6 43 Dubai Cloudy 23 73 Hong Kong Fair 17 63 Toronto Cloudy -8 18
B’ham Fair 5 41 Budapest Fair 7 45 Dublin Shower 5 41 Istanbul Shower 13 55 Vancouver Cloudy 8 46
Bangkok Sun 33 91 Buenos Aires Sun 30 86 Edinburgh Rain 4 39 Jersey Shower 8 46 Vienna Shower 7 45
Barcelona Sun 14 57 Cardiff Rain 7 45 Frankfurt Drizzle 7 45 Lisbon Fair 16 61 Warsaw Sleet 3 37
Beijing Sun 1 34 Chicago Cloudy -3 27 Geneva Snow 5 41 London Fair 7 45 Washington Sun 1 34
Belfast Sleet 3 37 Cologne Shower 6 43 Glasgow Sleet 4 39 Los Angeles Sun 18 64 Zurich Sleet 4 39

CROSSWORD ACROSS 4 Poke fun at director, embraced

1 Dread holding the light thing (7) by friend in bawdy fashion (8)
No. 15,136 Set by CHALMIE 5 Soldiers look westward (it keeps 5 Meeting nurse in a sort of jam
        the light off) (7) (6)
9 Blue car in crash can only get 6 Copies medical scan into
worse (9) answers (10)
10 Prize includes modish grape (5) 7 Fuss over island’s light
 
11 Painful choice of direction (4) entertainer (4-3-5,3)
12 One will carefully consider 8 Forming bubbles bursting near
dropping resistance to light (10) light (9)
  14 Not very cunning about window 13 A smash in 24 hours, fans begin
(8) supporting inexperienced rising

15 Film of Tensing and Hillary (6) star (5,5)
  17 Musical style of a tug in distress 14 Photographic technique cuts off
(6) so badly (4,5)
 18 For openers, Farming Gazette 16 Possibly evening out near Lord
features anger at supporter of Snooty? (5,3)
 
compost burning (8) 19 Black Watch goes round wood

20 It’s very funny topping God (6)
in argument about source of 22 Male graduate says
   brightness (10) ichthyosaurs lacked heads (5)
21 Second vehicle one you 23 Run away from cheat, avoiding

probably shouldn’t pick (4) city district (4)
 
24 “Eyelashes” sounds less sensible
(5)
25 Light in battery burners (9) Solution 15,135
26 Unreliable friends have nothing
 
for one to request (4,3) 0
$
8 5
$
' (
$
5
1
9 ,
'
& $
3
5 $ * (
% 6
27 Discoverer of polarised light & $ 1 $ 6 7 $ ( ; 3 ( & 7 6
almost complimentary backing $ * < * ( / (

optical instrument (7) 5

2
( (
)
)
,
+ $
7
/ )
,
* (
7
5 0 $ 1
(
JOTTER PAD 2 5 , ( 1 7 ( ; 3 5 ( 6 6
DOWN 1 1 ' + ( ( 2 $

1 Force with light weapons finally $ '

(
0 ,
$
5 $
8
/
/
: (
6
$ 3 2 1
2 1
moves quickly (5) & 2 5 $ 1 * / $ , 6 2 7 7 2
2 Working doctor placing article + + ( 1 . $ 8
as expected (9,2,4) 5 ( 7
, ,
5 (
0
$ '
,
.
6
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6 0 $ 1
, &
3 Crowd tried to be heartless (4) 6 / ( ( 3 , 1 * 6 7 5 $ ) (
Wednesday 13 January 2016 ★ 17

UniCredit Michael Page Halliburton Spanish 10-yr Pound / dollar Nikkei 225 Copper (LME) Brent oil
Content call Facebook’s Free govt bond
Basics stirs up storm in India 0.98% 8.08% 2.31% 3bp 0.8% 2.7% 0.7% 3.2%
INSIDE ASIA, PAGE 18
€4.63 410.5p $30.82 1.83% $1.4420 17,219 $4,355 $30.55

EU to probe Discounters reduced ‘Tide turning’ as Aldi sales

show signs of faltering and Morrisons’ look up
Short
View
Halliburton Katie
Martin

acquisition of You know what they say: “Don’t fight the central bank.”
But that doesn’t seem to apply in Sweden.
According to local lender Nordea, the Riksbank has a

Baker Hughes
finger “glued to the trigger” to intervene in the currency
markets and whack the krona lower.
Rate-setters have bent over backwards to stem the flow
of money into the krona, launching a bond-buying pro-
gramme and slashing benchmark interest rates. Deposit
rates stand at minus 0.35 per cent. Take that, European
Central Bank, with your puny minus 0.3 per cent! There’s
3 New hurdle in $26bn oil services deal more where that came from too, despite a house price
boom that would make a London estate agent blush.
3 Energy sector competition concerns To back that up, the Swedish central bank has used
frequent speeches and meeting minutes to send a consist-
CHRISTIAN OLIVER — BRUSSELS services — running across many differ- ent message: the strong currency is making it harder and
ent product and service lines — only the harder to reach 2 per cent annual inflation targets (infla-
Brussels has opened an in-depth probe three top companies were serious con- tion now stands at about 0 per cent).
into Halliburton’s $26bn acquisition of tenders. “Therefore, the transaction Perhaps, the deputy governor said, in meeting minutes
Baker Hughes, laying another obstacle would reduce the number of integrated released in November, traders and investors are not taking
in front of a landmark oil services deal service providers from three to two, the central bank seriously. Traders? Not listening to
that already faces regulatory headwinds which may lead to less choice and central bankers? Perish the thought.
in the US. potentially higher prices for customers,” Last week, the central bank turned up the volume, hold-
Margrethe Vestager, EU competition the commission said in a statement. ing an extraordinary meeting at which it resolved to inter-
commissioner, announced the formal Ms Vestager said her inquiry formed vene without further warning and at any time.
“phase two” probe yesterday, express- part of a broader EU strategy to ensure The krona dipped. A bit. Blink and you would have
ing concerns that the tie-up could energy supply security in Europe. missed it. In fact, the currency has climbed more than
inflate prices in the European energy The US Department of Justice told 4 per cent on a trade-weighted basis since August.
sector. Halliburton and Baker Hughes late last Why? Some just can’t resist putting money to work in
“The commission has to look closely year that their proposed disposals to Sweden, where the government’s own forecasting agency
at this proposed takeover to make sure override competition concerns were says the economy is “entering a boom period” of growth at
that it would not reduce choice or push inadequate. 4 per cent last year and this. What’s more, analysts and
up prices for oil and gas exploration and The companies have set a deadline of investors look at the Riksbank’s record of predicting where
production services in the EU,” she said. April 30 to complete the deal but the interest rates will be and think, rightly or wrongly, that its
Brussels said that its preliminary EU’s timetable for phase two investiga- forecasts can be taken with a pinch of salt.
investigation into the tie-up had “indi- tions could push this back, particularly Some perhaps think the central bank — even though it
cated serious potential competition if the probe proves complex. Its official denies it has an exchange rate target as such — will wait
concerns” in more than 30 product and deadline is May 26. Almost one in eight UK consumers did their big December shop at Aldi or Lidl — Jason Alden/Bloomberg until the euro sinks to SKr9 against the euro. Or they doubt
service lines, both offshore and onshore. The deal was agreed in November the central bank has the firepower to fight back. Unilateral
If approved, the deal would merge the 2014 at an initial value of $38bn. That interventions from small countries have a patchy record
world’s second and third biggest oil has now dropped to $26bn because of PETER CAMPBELL year earlier Aldi’s sales grew their single biggest December after all.
AND ALIYA RAM
services businesses. The market leader the fall in the value of the buyers’ shares 25.8 per cent. shopping trip in Aldi or Lidl, on Someone has to be wrong. This may hurt a little.
is Schlumberger, which agreed to buy since it was announced. Aldi’s sales growth over the After Wm Morrison notched top of the 15.6m households
Cameron International for $14.3bn in The companies say their tie-up will Christmas period failed to up growth of 0.2 per cent in who visited at some point in the
August. help the oil and gas production compa- exceed the rate at which it has like-for-like festive sales, Bern- 12 weeks,” said Fraser McKevitt Riksbank repo rate
Halliburton and Baker Hughes said nies that are their customers, allowing been opening new stores, lead- stein said the “tide may be at Kantar. Per cent 4
that they would work “constructively” them to operate more cost-effectively. ing analysts to say the “tide turning” in favour of the more In the past year Aldi has over- Forecasts
with the commission and added that There are several areas of overlap may be turning” in its battle established retailers. taken Waitrose to become the 3
Halliburton expected to “offer a sub- between the two groups’ businesses, and with larger rivals. Aldi and Lidl have expanded sixth most popular supermar- Rate-setters have
2
stantial remedies package [to] address they made two rounds of announce- rapidly in the UK and account ket in Britain. launched a
any substantive competition concerns”. ments of planned disposals of opera- Sales at the German discounter for 9 per cent of the grocery Shares in Morrisons rose 1 bond-buying
The commission said it was con- tions to meet US concerns that the take- grew 11.5 per cent in the four market between them. They almost 9 per cent yesterday programme and
cerned that there were such high barri- over would damage competition. weeks to January 4, according attracted 1m more shoppers after it put an end to 15 consec- 0 slashed benchmark
Dec
ers to entry into the oilfield services sec- Ms Vestager is having to counter accu- to Kantar Worldpanel data. than last Christmas, according utive quarters of falling like- 2015 -1 interest rates, with
tor that there were only four globally sations from Washington that she is tar- This was the same rate at to Kantar figures. for-like sales. deposit rates now
2010 12 14 16 18
active companies: Schlumberger, Halli- geting US groups more than their EU which it opened stores last year “The discounters are contin- Debenhams rose sharply standing at minus
Source: Nordea Markets
burton, Baker Hughes, and to a lesser rivals. She denies the charge. — indicating that like-for-like uing to establish themselves in after a buoyant trading update. 0.35 per cent
extent, Weatherford. Additional reporting by Ed Crooks sales were flat, analysts at Bern- the minds of British consum- Lombard page 24
When it came to offering integrated in New York stein said. In the same period a ers. Almost one in eight did Reports page 25 katie.martin@ft.com

Credit health of indebted groups falls

at fastest pace since 2009, S&P warns
DAN MCCRUM AND GAVIN JACKSON “We’re sitting on a see-saw here, and would be more on how the macro
it’s a question to what extent business themes play out.” Before S&P changes
The health of indebted companies
confidence will hold up in the face of the its assessment of a company’s financial
globally has deteriorated at its fastest
broader dislocations developing in the health, it usually informs the market a
pace since the financial system was
rest of the world,” said Paul Watters, rating is “on watch”. Just 6 per cent of
wracked by crisis in 2009, Standard &
head of corporate research for S&P Rat- companies are on a positive watch,
Poor’s said yesterday.
ings Europe. while the outlook is worsening for 17 per
Budget airlines check into The credit rating agency’s assessment is Investors are attempting to assess the cent of those rated by S&P, the greatest
possibility of feeder traffic the latest sign of deteriorating business impact of a slowdown in the Chinese difference between positive and nega-
conditions and comes after the worst economy, as well as an end to the era tive since the financial crisis began.
Budget airlines are eyeing tie-ups with start to the year for global stock markets of cheap debt finance after the The decline in the financial health of
flag carriers in which their passengers in decades. Federal Reserve raised interest rates in businesses in the second half of 2015
transfer on to long-range aircraft over Three times as many companies are December for the first time in almost a was the sharpest since 2009, the rating
the course of their journey, after at risk of a ratings downgrade as are decade. agency said.
having traditionally shunned the idea likely to register an improvement in “I would not use this as a leading indi- Mr Watters said the average quality of
of providing feeder traffic, owing to their creditworthiness, S&P said. cator of credit quality declining but as corporate ratings has been in decline, as
the costs and complexity. However, problem borrowers are an indicator of what the market is pric- existing borrowers have taken on more
Analysis i PAGE 19 so far concentrated in the oil and ing in,” said Srikanth Sankaran, a credit debt and new issuers have come to the
gas and metals and mining industries. strategist at Morgan Stanley. “My focus market at lower ratings.

Companies / Sectors / People

Companies
21st Century Fox....................................20
AIG...................................................................22
AO World.....................................................25
Aberdeen.....................................................24
Adallom.........................................................10
Aer Lingus...................................................19
Airbus.............................................................19
Alcoa...............................................................33
Aldi..................................................................25
Alibaba....................................................20,22
Alphabet.......................................................18
Altice ............................................................20
Amazon................................................11,16,18
Anheuser-Busch InBev........................22
Anthem.........................................................33
Apple...............................................................16
Asahi Group Holdings.........................22
Asos.................................................................16
Aviva .............................................................24
Axel Springer............................................20
BHP Billiton................................................33
BP........................................................................1
Baidu..............................................................22
Baker Hughes............................................17
Baxalta...........................................................33
Beijing Kunlun Tech..............................22
Boeing............................................................19
Boohoo....................................................16,25
Bouygues Telecom................................20
British Airways..........................................19
BuzzFeed........................................................4
C&C Group..................................................22
Cairn India...................................................33
Cigna...............................................................33
Cineworld.....................................................24
Citigroup.......................................................32
Daimler..........................................................18
Dalian Wanda......................................16,20
Debenhams ...............................................25
Deutsche Bank.........................................32
Direct Line..................................................24
DreamWorks Animation.....................20
eBay................................................................20
EasyJet..........................................................19
Eldorado Gold...........................................10
Emirates Airline........................................19
EnQuest...........................................................1
Etihad Airways..........................................19
Export Credit Bank of Turkey........32
Facebook......................................................18
Fannie Mae.................................................32
Fiat Chrysler Automobiles.................18
Ford.................................................................18
Freddie Mac...............................................32
Free.................................................................20
Freeport-McMoRan..........................32,33
Frontier Airlines.......................................19
Gamesa..........................................................16
Geely...............................................................18
General Motors.........................................18
GlaxoSmithKline......................................24
Glencore........................................................32
Google.....................................................18,20
Greggs...........................................................25
HSBC..............................................................24
Halliburton...................................................17
Heineken......................................................22
Home Retail Group................................25
Honda.............................................................18
Horiba ...........................................................14
Hypo Alpe Adria.....................................32
Hyundai.........................................................18
IAC...................................................................22
IBM..............................................................11,22
Imax................................................................20
Infosys............................................................18
Ithaca Energy...............................................1
J Sainsbury...........................................25,33
JetBlue...........................................................19
Just Eat...................................................16,24
Just Retirement.......................................24
KfW..................................................................32
Kinder Morgan..........................................33
Kirin.................................................................22
Kyocera..........................................................14
Legal & General .....................................24
Legendary Entertainment...........16,20
Lidl...................................................................25
Lions Gate Entertainment................20
Lufthansa.....................................................19
Lululemon....................................................33
Marathon Oil..............................................33
Marks and Spencer...............................25
Match Group..............................................22
Metro-Goldwyn-Mayer........................20
Microsoft.............................................10,11,18
Mitsubishi......................................................11
Molson Coors............................................22
Morgan Stanley........................................18
Mylan.............................................................24
Naspers........................................................20
News Corp............................................18,20
Next.................................................................25
Nissan.............................................................18
Norwegian Air Shuttle.........................19
Novartis........................................................24
Novo Banco................................................32
Numericable-SFR....................................20
Odeon............................................................24
Omron ..........................................................14
Opec...............................................................34
Oracle ............................................................11
Orange..........................................................20
Partnership.................................................24
Pemex............................................................32
Petrobras............................................1,20,32
Pfizer..............................................................33
Procter & Gamble.....................................8
Prudential Regulation Authority...24
RSA.................................................................24
Reckitt Benckiser....................................33
Renault-Nissan..........................................18
Rolls-Royce..................................................11
Royal Dutch Shell......................................1
Ryanair...........................................................19
Samsung Electronics.............................10
Schibsted.....................................................20
Schlumberger.............................................17
Schneider Electric....................................11
Shire................................................................33
Siemens..........................................................11
Sinovel............................................................16
Southwest Airlines.................................19
Sri Lankan Airlines.................................32
Starbucks.....................................................33
TAP..................................................................19
TalkTalk.........................................................33
Teck.................................................................33
Tesco..................................................18,25,33
Thames Water.............................................3
Toshiba .........................................................11
Total...................................................................1
Trian Fund Management.....................11
Tsingtao Brewery....................................22
Twitter............................................................18
United Technologies ............................11
Vale..................................................................32
Vedanta.........................................................33
Virgin Atlantic...........................................19
Vue..................................................................24
Wanda Cinemas.......................................20
Wm Morrison..................................17,25,33
ZTE..................................................................16
Sectors
Aerospace & Defence.....................19,32
Airlines...........................................................19
Automobiles...............................................18
Banks.......................................................24,32
Food & Beverage.............................22,25
Gen Financials...........................................18
Industrials....................................................10
Insurance...............................................22,24
Media............................................16,18,20,22
Oil & Gas............................................1,20,32
Pharmaceuticals................................24,33
Retail & Consumer..........17,18,24,25,33
Software..............................................10,11,18
Support Services.....................................16
Technology.....................................16,22,24
Telecoms..........................................16,20,33
Travel & Leisure.........................................2
People
Witty, Sir Andrew...................................24
Barra, Mary.................................................18
Bendine, Aldemir....................................20
Bouygues, Martin...................................20
Brégier, Fabrice.........................................19
Buttress, David........................................24
Dean, Helen..................................................4
Dickinson, Helen......................................25
Diller, Barry.................................................22
Drahi, Patrick............................................20
Fields, Mark................................................18
Gelfond, Rich.............................................20
Ghosn, Carlos.............................................18
Gilbert, Martin..........................................24
Greidinger, Israel.....................................24
Hachigo, Takahiro...................................18
Hancock, Peter.........................................22
Icahn, Carl....................................................22
Kamani , Mahmud..................................25
Kane, Carol..................................................25
Kobayashi, Toru.......................................14
Ma, Jack.......................................................20
Marchionne, Sergio................................18
McCall, Carolyn.........................................19
Murdoch, Rupert.....................................20
Nilekani, Nandan.....................................18
O’Leary, Michael.......................................19
Paulson, John............................................22
Potts, David................................................25
Price, Paul....................................................22
Reizenstein, John....................................24
Ryssdal, Rolv Erik..................................20
Samuelsson, Hakan................................18
Schroeter, Martin....................................22
Schultz, Howard......................................33
Sharma, Vijay.............................................18
Sharp, Michael..........................................25
Simkhai, Joel..............................................22
Tull, Thomas..............................................20
Wang, Jianlin.......................................16,20
Whiteside, Roger.....................................25
Zhou, Yahui................................................22
Zuckerberg , Mark..................................18

© The Financial Times Limited 2016 Week 2

18 ★ FINANCIAL TIMES Wednesday 13 January 2016

COMPANIES
INSIDE BUSINESS
Automobiles
ASIA

Ford and Honda defend US luxury turf James

Top-end rivalry surges
ahead amid superior
growth and returns
ROBERT WRIGHT — DETROIT
Ford’s Lincoln luxury brand and
Honda’s upmarket Acura yesterday
set out plans to grab a bigger slice of
the US luxury car market, in the latest
sign that attractive returns and continu-
duced a new Mercedes E Class, while
Geely’s Volvo cars launched the S90
sedan, Nissan’s Infiniti brand unveiled
its latest Q60 sports sedan and Hyundai
of South Korea rolled out the first of its
Genesis luxury cars.
Superior returns from luxury
accounted for more than 2m of the
17.5m car sales in the US last year. Lux-
ury accounts for about 10 per cent of all
vehicle sales worldwide but a third of
operating profits.
the future design direction for Acura,
which when it started 30 years ago
was the first luxury brand from a Japa-
nese carmaker.
Some analysts, including Matt
DeLorenzo, managing editor of Kelley
Blue Book, the car information service,
have said the US luxury market risks
becoming overcrowded. “It’s coming to
a point where there are maybe too many
cars chasing too few buyers,” he said
recently.
Crabtree
out the popularity of the small sports
utility vehicles that have become the
largest single segment of the US market.
Hakan Samuelsson, the Volvo Cars
chief executive, acknowledged the
Dilemma for Facebook
strong competition after unveiling the
S90, Volvo’s attempt to position itself as
as Free Basics venture
a competitor to the German and Asian
brands that dominate the US luxury
market.
gets few ‘likes’ in India
2m “Everybody is trying to make more
Luxury cars sold
last year in the US, attractive cars,” he said. “Everybody is

ing growth in the sector are spurring
increased competition.
The launches of Lincoln’s large Conti-
nental and Acura’s Precision sedan con-
cept follow a series of introductions over
the first two days of the Detroit automo-
bile show.
On Monday Germany’s Daimler intro-
There would be “more growth to However, Carlos Ghosn, chief execu-
come” for Lincoln, said Mark Fields, tive of Renault-Nissan, said the segment
Ford chief executive, citing progress would continue its steady growth — with
made last year in the US and China by Infiniti accounting for 11.8 per cent of
the once-struggling brand. “2016 is an US luxury sales this year.
inflection point for Lincoln.” “What we see is very similar trends in
Takahiro Hachigo, Honda chief exec- the premium market compared with
utive, said the Precision concept set out the general market,” he said, pointing
Automobiles. Growth drive
I
where total sales trying to offer something they can ndia’s Narendra Modi exchanged an enthusiastic bear
were 17.5m charge more for.” hug with Facebook chief executive Mark Zuckerberg
But Mr Samuelsson said his brand on a trip to Silicon Valley last September. The gesture
11.8% would succeed even if others failed. seemed to symbolise a meeting of minds: the tech-
“Everybody has an ambition to be pre- savvy prime minister and the boyish billionaire, with
Share of US luxury
market targeted mium,” he said. “But can they really his eye on a booming Indian internet market.
by Nissan’s Infiniti deliver something that’s distinctive and Even so, India’s embrace of Mr Zuckerberg’s latest ven-
brand this year attractive to customers?” ture — a plan to make parts of the internet available for
free — is proving decidedly less warm. Facebook’s “Free
Basics” gives access to sites such as Wikipedia or Accu-
Weather, in addition to the social network’s own app.
The US company runs the programme, while persuad-
ing local telecoms operators to cover the cost of data
charges. But while it runs in 37 countries, Free Basics has

Focus turns to Fiat Chrysler chief’s master plan
Alfa Romeo revival is first test
for Marchionne as he seeks to
show investors he is a ‘car guy’
ANDY SHARMAN
For a man who likes to tell it straight,
Sergio Marchionne seems very fond of
opaque words like “disintermediation”.
The outspoken chief executive of Fiat
Chrysler Automobiles is worried that
key trends in the motor industry —
notably electric vehicles and self-driv-
ing automobiles — could result in car-
makers not only losing out on their
share of the profits but also their
raison d’être.
Mr Marchionne has repeatedly said
the industry’s leading names must come
together via mergers and acquisitions so
as to be in a better position to invest in
the technologies of the future — a view
he articulated passionately in a presen-
tation in May last year.
At the Detroit auto show on Monday
Mr Marchionne finessed his argument,
saying that carmakers must combine in
order to compete in the growing market
for electric cars. Otherwise, companies
risked ceding their core competence of
manufacturing engines and transmis-
sions to suppliers, in a process he called
disintermediation.
But the consummate dealmaker —
who brought together Italy’s Fiat and
Chrysler of the US — also said he had
“abandoned” the idea of securing
another major transaction in the near
future.
Attention now turns to how well this
accountant turned industrialist can exe-
cute a much trumpeted plan to improve
Fiat Chrysler’s performance. Mr Mar-
chionne has pledged to step down in
2018, by which time he will have either
succeeded or failed with a five-year plan
unveiled in 2014 that has been roundly
derided as fantasy.
“Some people . . . suggested that the
reason why we were looking for a [deal]
is because of the fact that we were duck-
ing our 2018 [performance] commit-
ments — which is fundamentally a
bunch of hogwash,” he said in Detroit.
By 2018, Fiat Chrysler is aiming to sell
7m cars a year, versus a company fore-
cast of 4.8m for 2015. Revenue should
reach €132bn and net income exceed
€5bn in three years’ time. This com-
pares with the company’s 2015 guidance
for €110bn in revenue and €1.2bn in net
income. Net debt should fall to less than
€1bn, compared with €7.8bn at the end
of September.
Mr Marchionne is committed to the
2018 financial targets — not least
because he stands to receive shares
worth almost $36m if he hits the net
income figure.
But he will update investors at the end
of this month on progress, alongside
full-year results for last year, and is
Sergio expected to tweak volume forecasts and
Marchionne planned investments.
says he has The renewed emphasis on the
abandoned the performance plan will test whether
idea of another Mr Marchionne is a “car guy”. Much
big deal — Jewel depends on the proposed revival of the
Samad/AFP/Getty Images
upmarket Alfa Romeo brand. The
Giulia, a new saloon, goes on sale in the
spring, the first of nine new models to be
launched by 2018 on a new platform.
But planned capital spending at Alfa
Tax boost
China stimulus fuels hopes
of 6% sales rise in 2016
Chinese car manufacturers are
expecting 6 per cent sales growth for
2016, thanks to a stimulus package of
tax cuts that reversed what had been
flat or declining figures last year.
The changes to purchase taxes on
small-engine cars have already helped
fuel a 4.7 per cent rise in sales in 2015,
according to the Association of
Automobile Manufacturers, a domestic
lobby group.
This time last year, CAAM had
forecast 7 per cent growth for 2015,
but it trimmed that to 3 per cent in
July owing to a poor midyear outlook.
has been delayed and Fiat Chrysler has
warned that much of the growth
assumed in the plan for the brand was
predicated on China, where premium
car sales have slowed.
But ultimately the success of the per-
formance plan depends on the US.
About 85 per cent of Fiat Chrysler’s
operating earnings now come from
North America, according to analysts at
Exane BNP Paribas.
Amid China’s worst stock market
rout since 2007, wholesale figures
released in June showed a 3.4 per cent
year-on-year decline, the first fall the
industry had seen since 2013.
Sales were also hit by new licence
plate restrictions in some cities aimed
at reducing congestion and pollution.
However, the government halved
taxes in October for vehicles with 1.6
litre engines or smaller until the end of
2016. The sector then achieved year-
on-year growth rates of 17.6 and 15.4
per cent in November and December
respectively.
The number of newly licensed
drivers is growing by about 12 per cent
annually, with the majority of buyers
under the age of 30. Christian
Shepherd, Tom Mitchell and Wan Li
Following the spin-off this month of
Ferrari — which accounted for about 12
per cent of Fiat Chrysler’s earnings
before interest and tax in 2014 — the
London-based company is ever more
dependent on Jeep, its sport utility
vehicle brand, at a time when analysts
question how much growth is left in a US
market that is at record sales levels.
Meanwhile, some industry insiders
are not convinced that Mr Marchionne
has given up on the idea of concluding
another major deal before he steps
down. Mr Marchionne’s plea for consoli-
dation last year was accompanied by
several overtures to General Motors —
the world’s third-biggest carmaker by
sales — including three letters sent to
Mary Barra, chief executive and Tim
Solso, former chairman, according to a
person familiar with the matter.
“The reality is that they got a more
brutal cold shoulder from GM than they
expected,” adds this person. Accounting
for the Ferrari separation, Fiat Chrys-
ler’s market capitalisation is now about
$10.5bn versus $47.5bn for GM.
While he believes GM is still the opti-
mal partner, Mr Marchionne said on
Monday that Fiat Chrysler was looking
at a “wider set of combinations”. “How
do we position ourselves to play a signif-
icant role post 2018?,” he added. “It’s a
different world.”
proved uniquely controversial in India, where regulators
suspended it temporarily in December pending a review of
internet pricing rules.
Facebook came out fighting, taking out full-page news-
paper advertisements featuring a plaintive article from
Mr Zuckerberg. He described his pet project as the online
equivalent of free public libraries and health clinics. “Who
could possibly be against this?” he wrote.
Plenty of people, as it turns out. Facebook’s efforts have
been assailed by high-minded internet activists and prom-
inent start-up entrepreneurs. Technology luminaries
such as Nandan Nilekani, co-founder of outsourcing group
Infosys, have also come out against the plan, describing it
as a “walled garden” that “goes against the spirit of open-
ness on the internet”.
For much of this Facebook has only itself to blame. The
first version of its service launched in India early last year.
It offered access to barely a dozen sites and gave confusing
guidelines about how others could sign themselves up to
participate. A rash of conspiracy theories about the com-
pany’s ulterior motives took hold.
Some painted Free Basics as a kind of internet land grab
that would ultimately give the social network arbitrary
power over what millions of internet users could see.
Others saw it as a thinly veiled attempt to steal a march on
competitors such as Google and Twitter. More serious
objections argued that it compromised net neutrality,
the idea that all parts of the
internet should be available
to its users on equal terms.
Some saw Free
Much of this criticism was Basics as a thinly
over the top. Facebook
relaunched the service later
veiled attempt
in 2015, with clearer rules to steal a march
about how new sites could
join, including rivals such
on competitors
as Google.
The company also argues that Free Basics does not com-
promise net neutrality. Many global regulators seem
to agree, and have backed forms of “zero-rating” — mean-
ing free access for certain content — so long as competition
is not affected.
This does not satisfy those who see Facebook’s plan as
the thin end of a more sinister wedge that would allow tele-
coms groups to favour certain sites and apps over others.
Indian internet users are especially sensitive to price, so
this could have big effects on their behaviour.
“The problem isn’t Facebook, it is that Facebook is
unwittingly making itself a proxy for the telecoms
operators,” says Vijay Sharma, founder of online market-
place Paytm.
Facebook seems unworried by such claims, but the Free
Basics row leaves Mr Zuckerberg facing a dilemma. The
company sees India as crucial to its future, not least
because of the heavy restrictions in China. Indians are
likely to outnumber Americans on Facebook next year.
In its own defence, Facebook says 15m now use Free
Basics globally, with roughly half of users opting to become
full-paying internet users within a month. That is no small
achievement. But it is hardly spectacular, especially when
India’s web population is set to more than double from its
current 300m by the end of this decade.
While Free Basics has proved modestly successful
bringing people online, it has been only too efficient at
generating negative publicity and alienating important
sections of India’s technology scene. There are reasonable
alternatives to Facebook’s model for wooing new users.
Google, for instance, provides free WiFi in public places
in India.
It may be that Mr Modi will put a stop to Facebook’s
plans when India’s regulators release their pricing review
later this month. But odds are that they will allow it to con-
tinue in some form. Mr Zuckerberg must therefore decide
whether to rethink his programme or to push ahead. At
present it looks as though he will choose the latter path. If
so, he may in time come to wonder whether all the bad
blood was worth the bother.
james.crabtree@ft.com

Technology General financial

Google hires economist as lobby chief
RICHARD WATERS — SAN FRANCISCO
Google has chosen a former White
House economist to lead its global lob-
bying operation as it pursues a less con-
frontational stance in its dealings with
governments around the world.
Caroline Atkinson has been appointed
head of global policy at a time when the
world’s biggest internet company is
seeking to douse political fires caused by
its growing business clout, its impact on
personal privacy and other issues.
Ms Atkinson, a former International
Monetary Fund official who holds both
UK and US nationality, is known as a
backroom negotiator and conciliator
with decades of experience on the inter-
national economic stage.
The choice marks a change of tack for
Google and a departure from the path
chosen by other big internet companies.
It follows a backlash against US tech
companies in Europe and new tensions
in Washington over their refusal to
weaken encryption standards that crit-
ics claim aid terrorist networks such
as Islamic State, or Isis.
Google suffered a severe setback in
Brussels last year after the collapse of a
tentative agreement to head off a com-
petition complaint. The hard bargain it
drove with the European Commission
angered rivals and eventually proved
politically unpalatable, leading Brussels
to backtrack and hit it with an antitrust
indictment last year.
Since then it has sought to overhaul its
approach to international diplomacy,
burying its confrontational stance in
favour of a more conciliatory style. The
change echoes what Microsoft did more
than a decade ago, after it was hit by a
competition complaint in Brussels.
A similar switch in Google’s dealings
with Wall Street, involving the hiring of
Morgan Stanley executive Ruth Porat as
chief financial officer last year, has paid
dividends, contributing to a strong rally
in the stock price of its holding com-
pany, Alphabet.
Accounting reforms to hit airlines and retailers
KATE BURGESS, HARRIET AGNEW
AND SCHEHERAZADE DANESHKHU
Companies will be forced to add close
to $3tn of leasing commitments to their
balance sheets under rules from US and
international regulators — significantly
increasing the net debt that must be
reported by airlines and retailers.
A new financial reporting standard —
the culmination of decades of debate
over “off-balance sheet” financing —
will affect more than one in two public
companies globally.
Worst hit will be retail, hotel and air-
line companies that lease property and
planes over long periods but, under cur-
rent accounting standards, do not have
to include them in yearly reports of
assets and liabilities.
In these sectors, future payments of
off-balance sheet leases equate to
almost 30 per cent of total assets on
average, according to the International
Accounting Standards Board, which col-
laborated with the US Financial
Accounting Standards Board on the new
rule.
Hans Hoogervorst, IASB chairman,
said: “The new standard will provide
much-needed transparency on compa-
nies’ lease assets and liabilities, meaning
that off balance sheet lease financing is
no longer lurking in the shadows.”
As a result of the accounting change,
net debt reported by UK supermarket
chain Tesco will increase from £8.6bn at
the end of August to £17.6bn, estimated
Richard Clarke, an analyst from Bern-
stein. However, while the new standard
would make Tesco look more indebted,
Mr Clarke added that the assets associ-
ated with the leases would also come on
to the company’s balance sheet, so “the
net effect would be neutral”.
News of the accounting change fol-
lows long-running concerns over the use
of off-balance sheet finance by some
companies.
Additional reporting by Anna Nicolaou and
Tanya Powley
Wednesday 13 January 2016
Ryanair and easyJet eye tie-ups with big rivals
Budget airlines are
considering deals
to provide feeder
traffic for European
flag carriers’
long-haul flights
TANYA POWLEY
European passengers flying long haul to
the US or further afield could soon find
themselves travelling part of the way on
a low-cost airline should Michael
O’Leary, Ryanair’s chief executive, get
his way.
Europe’s biggest budget airline by rev-
enue has signalled a major shift in strat-
egy by targeting tie-ups with flag carri-
ers under which it would provide them
with passengers for their long-haul
flights. EasyJet is considering a similar
move.
This could see Ryanair and easyJet
partner with British Airways or
Lufthansa, with passengers initially fly-
ing on the budget airlines’ short-haul
jets and then transferring on to the flag
carriers’ long-range aircraft. Through a
single transaction with one airline,
someone wishing to go from Lyons to
New York might in the future fly from
the French city to London’s Heathrow
airport with easyJet, and then switch
smoothly to BA to travel to the US.
It would be a remarkable turn of
events — for the past two decades, Rya-
nair, easyJet and other budget airlines
have engaged in cut-throat competition
with flag carriers on European short-
haul routes. The likes of BA, Air France
and Lufthansa have ceded as much as
40 per cent of the European short-haul
market to low-cost carriers offering
cheap fares.
Furthermore, the willingness of
easyJet and Ryanair to countenance
partnerships with flag carriers repre-
sents a big change for the budget air-
lines, which have traditionally shunned
Flag carriers could ensure
some marginal routes
are profitable and axe
some short-haul routes
the idea of providing so-called feeder
traffic to other carriers, owing to the
costs and complexity.
But as Ryanair and easyJet search for
further growth in an increasingly
mature European market, many indus-
try insiders believe that budget airlines
will become feeders for flag carriers’
long-haul routes.
“They all say, ‘No we would never
have Ryanair feed us,’ but in the end
they will, simply because we can deliver
feed into them at €45 a seat, whereas
currently they do it themselves at €150
a seat and are losing money hand over
fist,” says Mr O’Leary. Ryanair’s average
fare was €56 in the six months to Sep-
tember 30.
The advantage for flag carriers would
partly be that, by taking feeder traffic
from low-cost airlines, they could more
easily fill their long-haul aircraft, and
therefore ensure some marginal routes
are profitable.
Just as importantly, the arrangements
Aerospace & defence
Airbus set to re-enter Iran jet market
PEGGY HOLLINGER
AND MICHAEL STOTHARD — PARIS
NAJMEH BOZORGMEHR — TEHRAN
Airbus is poised to re-enter the Iranian
aircraft market as the international
community prepares to lift sanctions
that have paralysed the country’s
economy.
Fabrice Brégier, head of Airbus’s pas-
senger-jet unit, said that the company
had an understanding of future aircraft
needs from Iranian airlines and officials,
thanks to its existing business supplying
certain parts and safety services.
“We have made some contacts, yes,”
he said in an interview with the Finan-
cial Times.
“This is potentially a huge market for
Airbus and our competitors.”
However, he stressed that commer-
cial discussions had not yet begun as
western companies were banned from
such talks until a landmark nuclear
agreement between big powers and Iran
was implemented. This was expected in
the next few weeks, paving the way to a
lifting of Iranian sanctions.
“We are dependent on the resolution
of the international negotiations,” said
Mr Brégier. “[After that] we would have
no reason not to consider Iranian air-
★ FINANCIAL TIMES
COMPANIES
New networks
Will budget airlines start feeding passengers to European flag carriers?
Brussels
21.9m Total airport passengers 2014
Brussels Airlines hub
easyJet and Ryanair
fly here
Dublin
21.7m
Aer Lingus hub Schiphol,
Ryanair has a base Dublin Amsterdam
London
Heathrow, London
73.4m
British Charles de
Airways hub Gaulle, Paris
Paris
Madrid
63.8m
Air France hub
easyJet has a base
Madrid
41.8m
Iberia hub
easyJet flies here; Ryanair has a base
Passenger numbers 2015
Lufthansa* Lufthansa Passenger Airlines 77.5m
Air France-KLM
IAG* British Airways 41.5m Vueling 21.5m
Total
Alitalia
22.1m
Ryanair
easyJet
* 2014 figures. 2015 figures yet to be published
FT graphic Source: FT research
would enable the likes of Air France to have increased the pressure on flag car-
axe some of their lossmaking short-haul riers by wooing business passengers
routes, where they struggle to compete with flights to key European hubs such
with easyJet and Ryanair because of as Charles de Gaulle in Paris and Rome’s
higher operating costs. Fiumicino. EasyJet has even expressed
In recent years, easyJet and Ryanair an interest in flying to Heathrow.
Chris Tarry of Aviation Industry
Research and Advisory says that low-
European airline cost airlines realise that offering feeder
market shares traffic to flag carriers is an opportunity
By available seat capacity (%) for them. “As their own networks get
100 more extensive then the opportunity for
them to take passengers to and from
Flag carriers
80 another airline’s network increases as
well,” he adds.
60 However, several obstacles stand in
the way of budget airlines acting as feed-
40 ers to European flag carriers.
Budget airlines The biggest hurdle to date has been
20 agreeing which company, the budget
airline or the flag carrier, would be liable
0 if flights were delayed and connections
missed.
2000 05 10 15 Mr O’Leary is adamant that Ryanair
Source: OAG
would not be responsible for any missed
lines as a normal customer like the rest craft that the country has said it needs to
of the world. We are very strict at apply- renovate its fleet.
ing all the international rules and regu- Abbas Akhoundi, Iran’s minister of
lations.” roads and urban development, said in
Airbus and Boeing have been allowed November that the country could not
under the existing sanctions regime to afford an estimated cost of $50bn for
provide spare parts and safety manuals new aircraft, which might make leasing
to Iran’s ageing fleet, which was on aver- jets a more reasonable proposition.
age 25 years old, said Mr Brégier. Iran’s civil aviation industry has been
“We have contacts to support this subject to sanctions since the 1990s,
fleet and we try to understand better when Washington blocked Tehran from
what would be the requirements of buying passenger jets, most spare parts
these customers in the future,” he or maintenance contracts, apparently to
added. prevent it from gaining access to tech-
Boeing is understood to be equally nology that could have a military use.
keen to tap into what promises to be a Many Iranians are anxiously waiting
lucrative aircraft market. But it is not to see new Airbus and Boeing aircraft, as
yet clear if Iran, with its cash-strapped about 1,200 people have died in plane
economy and highly indebted domestic crashes since 1980. “Airbus is keen to
airlines, will be able to buy up to 500 air- enter Iran’s market immediately after
sanctions are lifted,” said an Iranian
businessman. “It will take some time for
Boeing, which is also keen, but needs to
first resolve its problems with financing
and continuation of the US sanctions.”
Iran finalised its nuclear agreement
with big powers last summer, in a deal
that should see sanctions lifted. How-
ever, European officials have voiced
worries that their companies could still
Airbus is waiting to hear the result of be in breach of residual US sanctions if
international negotiations on Iran they start doing business in Iran.
55.0m
59.6m
Brussels 22.5m
Frankfurt
Vienna
Zurich
25.4m
Fiumicino,
Rome
38.5m
Iberia 14.3m
Aer Lingus 9.8m
Total
69.8m
connections or baggage — an issue that
has already led to the ending of negotia-
tions between the company and Aer
Lingus and Virgin Atlantic. Ryanair is
still in discussions with Portugal’s TAP
and Norwegian Air Shuttle, which offers
cheap transatlantic flights.
Under Ryanair’s feeder proposals,
customers would be able to buy their
tickets for the two flights — one with the
budget airline, the second with the flag
carrier — in one transaction from the
company operating the long-haul flight.
This company would be responsible for
looking after their bags and taking
responsibility for missed connections.
Analysts say there are other matters
that could hinder discussions between
budget airlines and flag carriers. For
example, John Strickland, analyst at JLS
Consulting, says the proposed sharing of
revenue between the two sides would be
a critical part of negotiations.
Another issue that would need to be
resolved is improving services at air-
Legal Notices
Amsterdam
KLM hub
easyJet has a base; Ryanair flies here
Frankfurt
Lufthansa hub
Vienna
Austrian Airlines hub
easyJet flies here
Zurich
Swiss hub
easyJet flies here
Rome
Alitalia hub
easyJet and Ryanair have bases
Austrian Airlines 11.2m
Total
Swiss 17.3m
106.0m
Total
89.8m
Total
87.1m
Total
101.4m
ports, to ensure that passengers trans-
ferring from a short-haul to a long-haul
flight would not have to go through
immigration again, and that baggage
was moved between aircraft remotely.
Will Horton, analyst at the Centre for
Aviation, agrees. “Lufthansa and others
are clearly seeking a solution to lower
their costs, but is the price point that
works for them also favourable to low-
cost carriers?” he asks.
“Is it worthwhile to take on complex-
ity, cost and potentially some loss of
agility?”
Carolyn McCall, easyJet’s chief execu-
tive, admits that no one has yet been
able to show how low-cost airlines can
provide feeder traffic to flag carriers
“simply and easily and make money at
the end of it”.
Moreover, some analysts believe that
feeder partnerships are not crucial for
either Ryanair or easyJet’s growth.
Oliver Sleath, analyst at Barclays, says
that in the European short-haul market,
19
Small destinations
Big differences in US and
European approaches
The business models of easyJet and
Ryanair owe much to Herb Kelleher,
the Texan entrepreneur who co-
founded Southwest Airlines, a US
budget outfit, in 1967.
But European low-cost carriers’
growing interest in providing feeder
traffic for long-haul airlines
highlights big differences between
aspects of EU and US aviation.
While Europe’s flag carriers are
increasingly retreating from
short-haul flights, budget airlines
in the US continue to compete
head to head with more established
rivals on many routes.
For US low-cost carriers providing
feeder traffic “presents certain
problems”, according to George
Hamlin, head of Hamlin
Transportation Consulting, a
consultancy. “My sense is they
aren’t interested at this point.”
An exception to the rule is
JetBlue, which has code-sharing
arrangements with Dubai’s Emirates
Airline and Abu Dhabi’s Etihad
Airways, to carry long-haul
passengers on from the big
international hubs to smaller US
destinations using its short-haul
fleet.
JetBlue is different from many
other smaller US airlines in that it
has an extensive nationwide
network — and a strong position
at John F Kennedy airport in
New York.
SouthWest, in contrast, says its
domestic reservation system would
be incapable of handling through
bookings with other airlines.
Instead the pioneering low-cost
airline has focused on developing its
own network. “We could consider
this strategy in the future, but
nothing in the immediate future,”
the company says.
Frontier Airlines, based in Denver,
is more emphatic. As an “ultra-low
cost” carrier, its goal is to be able to
charge passengers as little as
possible, it says.
“Those types of agreements
don’t fit with our business model.”
Robert Wright
85 per cent of passengers are flying
point-to-point, ie people starting and
ending their journeys within the EU,
while just 15 per cent are travellers con-
necting to long-haul aircraft.
“Low-cost carriers have taken about
35-40 per cent of the overall market so
they could double in size doing just what
they do in the point to point market
without needing to worry about enter-
ing the feeder market,” he adds.
Deals between budget airlines and
flag carriers such as Lufthansa and Air
France are unlikely to happen in the
short term because both are engaged in
highly sensitive union negotiations over
current cost-cutting initiatives.
But some industry insiders believe
agreements could be made with smaller
airlines. Mr O’Leary says flagship carri-
ers need to “stop messing around and
trying to be low-fares airlines” when
they can just work with Ryanair or
easyJet. “It just becomes the logical
thing for them to do,” he adds.
20
Oil & gas
Petrobras cuts investment plan by $32bn
Scandal-hit group to spend
less on energy projects and
reduce Brazilian output
SAMANTHA PEARSON — SAO PAULO
Petrobras, the oil group at the centre of
Brazil’s biggest corruption scandal, yes-
terday slashed its five-year investment
plan by $32bn as it seeks to guard cash.
The state-controlled oil group said it
planned to invest $98.4bn between 2015
and 2019, down 25 per cent from its orig-
inal forecast of $130.3bn.
Petrobras’s finances have come under
Schibsted rewrites the script with digital drive
Low-profile Norwegian group
becomes model for the shift
from print to web journalism
HENRY MANCE
Rupert Murdoch’s News Corp controls
Australia’s most popular property web-
site. Axel Springer has two of Germany’s
largest equivalents.
But when it comes to diversifying
away from printed newspapers, both
trail in the wake of another publisher
with a much lower profile: Schibsted.
The Norwegian media group is a pio-
neer in profiting from digital advertis-
ing, with pre-tax profits of NKr2.25bn
($253m) in the first nine months of last
year helping shares rise 23 per cent
in 2015.
It is one of the three big beasts in
online classified advertising, alongside
eBay and South Africa’s Naspers,
according to analysts at Goldman Sachs.
Schibsted, owner of the largest news-
papers in Sweden and Norway, hired
more than 150 technology staff last year,
whose tasks include incorporating
image recognition and machine learn-
ing into its classifieds sites.
“We’re competing with players with a
global platform. We need to be much
more agile,” says Rolv Erik Ryssdal,
chief executive.
Classified advertising accounts for
nearly 40 per cent of Schibsted’s reve-
nues, up from 26 per cent three years
ago, and more than 80 per cent of oper-
ating profits.
Online marketplaces offer almost
everything that newspapers do not: fast
growth, high margins and high barriers
to entry.
Schibsted has been in the sector for
longer than many of its competitors,
having launched Norwegian site
Finn.no in 2000.
One of the company’s advantages is its
ability to develop new services in-house,
before building scale through acquisi-
tions. The approach distinguishes the
company from News Corp and Axel
Springer.
Also, unlike those two companies,
Schibsted has not complained to Euro-
pean regulators about the dominance of
Google, relying instead on its own ability
to innovate.
“We’re not looking to Brussels for
salvation,” says Mr Ryssdal. “I respect
[Google] a lot . . . but we’re able to
develop our own products and services.”
One of Schibsted’s key innovations is a
single sign-in system in Norway and
Media
China’s Wanda pays $3.5bn for US film studio
CHARLES CLOVER — BEIJING
Dalian Wanda, the property and media
group controlled by Wang Jianlin,
China’s richest man, has paid $3.5bn
for a controlling stake in Hollywood
studio Legendary Entertainment,
maker of the hit films Godzilla and
Jurassic World.
It is the biggest film deal yet for a Chi-
nese group. Mr Wang has long been eye-
ing Hollywood both for its prestige and
power and as a means of international
diversification. No other details beyond
price were given.
Mr Wang, who bought the AMC Thea-
intense strain since a multibillion-dollar
bribery scandal emerged at the com-
pany in 2014. With about $104bn in net
debt, the highest for any company in the
energy sector, Petrobras has sought to
sell assets and reduce spending. The
company has stopped paying dividends.
The company yesterday said that its
planned cuts in capital spending would
probably reduce its expected oil output
in Brazil this year from 2.185m barrels a
day to 2.145m.
As well as lower spending on energy
projects, Petrobras highlighted the neg-
ative impact of the sharp depreciation of
the Brazilian real against the US dollar,
Media. Advertising push
Norway’s Schibsted, a pioneer in profiting from digital advertising, is with Naspers and eBay one of the world’s three biggest online ad groups — Carsten Rehder/Bildfunk
Sweden that allows users to access mul-
tiple titles without the cumbersome
process of logging in multiple times.
This allows the company to collect data
across its newspaper and classified sites.
But the company now faces two key
challenges: building on its early classi-
Schibsted: at the forefront of media transformation
Online classified advertising (%)
80
As a share
of ebitda
60
40
As a share
of revenue
20
2011 12 13 14 15*
* Jan to Sep only ** First nine months of each year only
Sources: company; FT research
tre chain in the US in 2012 and whose
family wholly owns Wanda, said that he
plans to merge Legendary with his exist-
ing film assets and to list the combined
assets, but did not give a timeframe.
Wanda said the deal creates “the high-
est revenue generating film company in
the world”. Wanda Cinemas, listed on
the Shenzhen stock exchange, boasted
sales of Rmb4.5bn ($684m) in 2014.
Legendary does not disclose numbers.
China’s cinema market is growing
rapidly. Its total box office rose by 49 per
cent in 2015, according to state figures,
generating $6.8bn in revenues. The
country is adding an average of 22
screens per day. If it continues to grow at
its current rate, China is projected to
overtake the US as the world’s largest
film market by 2017, according to Rich
Gelfond, the chairman of Imax.
Legendary has been working with
state-owned China Film Company on a
fantasy epic, The Great Wall, which stars
Matt Damon and is the largest film yet to
be shot in China for global distribution.
Thomas Tull, Legendary chief execu-
tive, says it is a “large tent-pole film”.
Mr Wang said it was “a miracle for a
★ FINANCIAL TIMES
COMPANIES
which it said was responsible for
$10.7bn of the cuts.
With more than 80 per cent of its debt
in foreign currencies, the weaker real
has caused Petrobras’s debt to swell.
During the past five years, its gross debt
has grown fourfold and represents the
biggest challenge ahead for Aldemir
Bendine, its new chief executive.
Mr Bendine was brought in from
Banco do Brasil, a state-controlled
bank, in February last year to help con-
tain the damage from the corruption
scandal at Petrobras.
Prosecutors allege that for much of
the past decade Petrobras executives
fieds success, and improving the finan-
cial performance of its newspapers.
Mr Ryssdal says that the key to
classifieds is consolidation. “If you’re
able to establish a clear market leader,
it’s a fine position to be in,” he adds.
In France, where the company com-
Newspaper profits (NKr m)**
800
600
400
200
0 much more heated”, with private
2013 14 15
Chinese group to acquire such a big and
heavyweight American movie com-
pany”. But the deal is likely to raise the
question of creative control over films,
and whether Legendary will have to bow
to the editorial preferences of its Chi-
nese partner with its links with the Chi-
nese state, analysts say. Mr Tull insisted
that “nothing will change on that front”.
The deal may not be the last Chinese
investment in Hollywood, as other bil-
lionaires including Alibaba chairman
Jack Ma have been making the rounds in
Hollywood and talking about deals.
It has been long in coming for Mr
Wang, who was linked with a purchase
of DreamWorks Animation last year
before talks broke down. He also said a
year ago that he intended to buy Metro-
Goldwyn-Mayer or Lions Gate Enter-
tainment, but a deal did not materialise.
Recent openings of Hollywood films
in China have generated box-office
totals that rival US openings. “We’re in
the middle of a golden decade of movies
in China,” said Mr Wang. “This is a good
time to share the increasing size of the
Chinese movie industry pie.”
See Lex
conspired with Brazil’s largest construc-
tion companies to inflate the oil pro-
ducer’s contracts. They allege that bil-
lions of dollars were stolen to fund lav-
ish lifestyles, pay bribes and funnel
money to politicians, largely from the
ruling Workers party, and its allies.
In April last year, the company finally
published its annual results for 2014,
showing that Petrobras had plunged to a
net loss of R$21.6bn after a one-off hit of
R$50.8bn (US$16.8bn) — of which
R$6.2bn related to investigations into
the company.
The oil price crash, which was behind
the remainder of the writedowns in
petes with Axel Springer, Schibsted
owns the biggest property portal,
LeBonCoin, generating earnings before
interest, taxation, depreciation and
amortisation of €102m last year.
That represented a 67 per cent profit
margin.
In search of a similar formula, Schib-
sted last year reached a truce with
Naspers in emerging markets, which
saw it exit some markets and launch
joint ventures with the South African
company in Brazil, Indonesia, Thailand
and Bangladesh.
Goldman Sachs analysts point to “a
pipeline of midsize deals” in countries
such as Brazil, Mexico, Austria and Italy.
Citi analysts are more sceptical, arguing
that the need for acquisitions means
there is “scope for disappointment”.
Mr Ryssdal concedes that valuations
of classifieds companies have “become
equity buyers and initial public offer-
ings such as Germany’s Scout24.
Schibsted’s other major challenge is
Media
Murdoch marriage will not alter group control
MATTHEW GARRAHAN — NEW YORK
HENRY MANCE — LONDON
Rupert Murdoch is to marry for a
fourth time but his engagement to the
actress and model Jerry Hall will have
no affect on his family’s control of a
media empire that stretches from
The Sun newspaper to the Fox movie
studio.
Mr Murdoch, worth an estimated
$11.4bn, according to Forbes, and Ms
Hall announced their engagement in a
short notice in yesterday’s Times news-
paper, which is owned by News Corp.
Most of Mr Murdoch’s wealth is tied
up in the family trust that holds voting
shares in 21st Century Fox, the enter-
tainment group, and News Corp, which
owns publishing and media assets,
including the Wall Street Journal.
It is unclear whether Ms Hall and
Mr Murdoch have signed a prenuptial
agreement but a source familiar with
the matter said the marriage would
have “zero impact” on the ownership of
the family trust, which Mr Murdoch in
effect controls.
The trust’s beneficiaries are his four
2014, has also put pressure on Petrobras
and made it very difficult to sell assets.
“Petrobras has been working continu-
ously to fine-tune its business plan and
adapt it rapidly to the changes in the
business environment,” said the com-
pany yesterday, warning that it still
faced several risk factors.
It highlighted volatility in the cur-
rency and oil markets, as well as prob-
lems in its supply chain. With many of
Petrobras’s suppliers under scrutiny in
the corruption investigation and facing
financial difficulties of their own, the oil
and gas industry in Brazil has largely
ground to a halt.
its legacy newspaper business, which
generated €1.1bn of revenues in 2014,
but where profits have fallen 25 per cent
over the past two years.
Mr Ryssdal says that, as news audi-
ences move online, there will be greater
overlap with the classifieds business.
“The synergies going forward are much
greater than we’ve seen in the last
few years,” he adds. “It’s all about tar-
geted users.”
But many analysts are sceptical that
such synergies exist, saying that Schib-
sted’s classifieds outside Scandinavia
demonstrated fast growth without
newspapers.
Schibsted is in effect prevented from
selling its remaining newspapers,
because its biggest shareholder is a trust
whose purposes include protecting their
editorial independence.
The trust may also stand in the way of
what some see as a logical move — Axel
Springer acquiring Schibsted. “We’re
happy with our current situation,” says
Mr Ryssdal.
eldest children — Prudence, Elisabeth,
Lachlan and James. Wendi Deng,
Rupert’s third wife, did not become a
trust beneficiary. Her daughters, Chloe
and Grace, were granted a separate,
smaller portion of non-voting shares.
Ms Hall, 59, may still be in line to
The marriage to actress
Jerry Hall will have ‘zero
impact’ on ownership
of the family trust
Wednesday 13 January 2016
Telecoms
Orange head
calls for
consolidation
of ‘fragile’
mobile sector
ADAM THOMSON — PARIS
The head of Orange has said the last 20
years of regulation in Europe have left
the continent’s telecoms operators “in
a fragile state” compared with their
international peers, and that industry
consolidation was necessary for invest-
ment.
“Nobody can say that the situation in
Europe is satisfactory,” Stéphane Rich-
ard, the company’s chairman and chief
executive, said yesterday, insisting that
the crowded market had left telecoms
players weaker than international rivals
in terms of market capitalisation and
their ability to invest.
His comments come as he confirmed
that Orange, the former state monopoly,
was in talks with Bouygues Telecom,
France’s third-largest mobile operator,
over a proposed tie-up in one of
Europe’s most competitive markets.
It is not the first time Orange, in which
the French state still has a 23 per cent
stake, has discussed a possible acquisi-
tion of its rival. But Mr Richard said that
these talks were different because
Bouygues had approached Orange.
“It was not me who took the initiative
to reopen the discussions,” he said. “It
The crowded market
had left [Europe’s]
telecoms players weaker
than international rivals
was Martin Bouygues [chairman of
Bouygues]. So the dynamic is different
this time.”
He added that he expected the talks to
be relatively short. “We can’t take
months to do this,” he said. “It will be a
few weeks.”
Mr Richard said it had become clear
that Orange, the country’s market
leader with 28m mobile customers in
France, was the only group left that
could bring about a reduction of players
from four to three — a move that ana-
lysts believe will stabilise prices and
make it easier for operators to invest in
infrastructure.
“The path of consolidation runs
through Orange,” he said.
Nonetheless, he warned that he
expected the talks to be “complex” —
not least because they would also
involve Numericable-SFR and Free,
France’s two other operators.
They are expected to play a vital role
in the agreement by buying disposals
that competition authorities are
expected to demand of Orange in return
for approving a deal.
Mr Richard did not talk about finan-
cials but most analysts agree that a deal
could be a mix of cash and shares, equiv-
alent to about €10bn — the same
amount that Altice founder Patrick
Drahi offered to buy the company last
year. Mr Bouygues rejected Mr Drahi’s
all-cash offer, citing regulatory risk as
one concern.
Mr Richard said he was still not sure
whether competition issues arising
from the proposed acquisition of
Bouygues would be a matter for French
or European regulators, but added that
it looked more likely that such competi-
tion considerations would fall to Paris
rather than to Brussels.
inherit part of the assets owned individ-
ually by the 84-year-old Mr Murdoch.
He personally owns 0.5 per cent of the
shares in 21st Century Fox. That stake,
which has halved over the past two
years, is currently worth $110m.
Mr Murdoch’s other assets include the
top four floors of an apartment building
on East 23rd Street, New York, for which
he paid $57m following his 2013 divorce
from Ms Deng.
Ms Hall met the media entrepreneur
four months ago in Australia, where she
was performing in the play The Gradu-
ate. The couple were introduced by
Penny Fowler, Mr Murdoch’s niece.
Ms Hall’s current wealth is unclear.
Her marriage to Mick Jagger was found
to be invalid during the couple’s separa-
tion proceedings in 1999, reducing her
share of the singer’s fortune.
Mr Murdoch, 84, and Ms Hall have
made few public appearances but were
spotted together at last year’s Rugby
World Cup final in London. They also
attended Sunday’s Golden Globe awards
in Beverly Hills, where The Martian and
The Revenant, films distributed by the
Fox studio, were the night’s big winners.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 21
22 ★ FINANCIAL TIMES Wednesday 13 January 2016

COMPANIES

IBM taps M&A algorithm to strip out

Insurance

Bernstein poll
reveals few
human error and find the perfect deal shareholders
fully back
US tech group says its Pro tool speeds up due diligence by providing sharper insight into risks AIG strategy
SUJEET INDAP — NEW YORK
ALISTAIR GRAY — NEW YORK
After 14 consecutive quarters of declin-
Only a small minority of shareholders
ing sales IBM is turning increasingly to
fully back AIG’s present strategy,
mergers and acquisitions in the hope of
according to a poll by broker Bernstein
reviving growth. But one of its chief
that provides ammunition to Wall
dealmakers is upfront about the risks
Street activists pushing for radical
acquisitions carry.
changes at the insurer.
“If 70 per cent of M&A fails, would you
propose spending $20bn doing deals?” The poll of more than 100 investors
asks Paul Price, IBM’s director of M&A points to dissatisfaction with AIG and
integration, alluding to the widely held some sympathy for critics Carl Icahn
belief about the effectiveness of deal- and John Paulson, the powerful finan-
making — and the sum that the com- ciers agitating for a break up of the
pany allocated to deals between 2010 group.
and 2015. The Bernstein study comes two weeks
However, the technology group hopes before Peter Hancock, AIG’s president
to achieve far more than a 30 per cent and chief executive, will seek to rally
success rate by stripping out what shareholder support with an updated
Mr Price argues is the chief cause of plan for the New York-listed insurer.
deals going bad — human error. Bernstein itself is critical of AIG’s
Using its experience of doing scores of management. Nevertheless, it said the
deals in recent years, its vault of soft- survey sample was “statistically credi-
ware, and its hundreds of research sci- ble” and represented owners of more
entists, five years ago IBM began experi- than a third of AIG’s shares.
menting with a computer algorithm Asked how they would cast their bal-
that could spot the big risks in target lot if a shareholder vote was held today,
companies during the M&A due dili- only 9 per cent said they would back
gence process. directors who were pursuing AIG’s cur-
Like most large companies, IBM has a rent strategy, “perhaps with some mod-
“corporate development” team that est acceleration of cost-cutting and
evaluates and executes transactions in small divestitures”.
conjunction with the company’s operat- About a third would back activist
ing units. Its aim in creating a due dili- directors who plan to implement Mr
gence algorithm was to better align the Icahn’s strategy, including splitting AIG
into three separate companies.
Almost three-quarters would back
‘What we have done activist directors campaigning on a less
is create a common radical platform — including ditching
the tag of a “systemically important
language, an Esperanto, financial institution”, aggressively cut-
for deal execution’ ting costs and selling operating busi-
nesses to fund share buybacks.
In response to another question, only
4 per cent of respondents said they sup-
acquisition process with post-deal inte- Five years ago IBM began tests with tional and statistical software company as sales force capacity, then deeper still expert,” he says. “But what we have ported management’s current strategy
gration plans. “The focus used to be on a computer algorithm that could IBM bought in 2009 for $1.2bn. M&A into how the company hires sales peo- done is create a common language, an and that no changes were needed.
the downstream part of the process: tar- spot risks during the M&A due Pro also draws on a handful of other ple. At the same time, M&A Pro high- Esperanto, for deal execution across the Another 13 per cent backed it but said
get identification,” Mr Price says. “Inte- diligence process — David Paul Morris/Bloomberg software companies that IBM has lights the areas where there is a chance organisation . . . Our business now is management needed to “better com-
gration concerns . . . couldn’t stop a bought including Cognos, a financial for revenue to grow faster than the busi- much more grounded in economic and municate and pick up the pace”.
deal.” reporting software package it acquired ness case. operational reality.” Mr Hancock has dismissed the idea of
Now, according to Martin Schroeter, for $4.9bn in 2009. A summary forecast calculates the But data-driven dealmaking has not splitting up AIG, which has already
IBM’s chief financial officer, the M&A More than 200 potential factors from likelihood of IBM hitting its perform- turned around IBM’s poor performance. slimmed down after it was bailed out by
Pro tool has given the company a more than 100 acquisitions have been ance target for the deal, spitting out a Its total shareholder return for the past taxpayers for almost $185bn during the
sharper insight into deal risk and the whittled down to 28 variables. Among conclusion such as: “Deals like Project X two years is minus 25 per cent. Even financial crisis. He has said such a move
ability to complete deals faster, before those that IBM was willing to disclose tend to miss the business case, averag- $20bn in M&A spent on emerging soft- would make “no financial sense” as it
competitors can pounce or a target can were the target company’s geographic ing 81 per cent revenue attainment.” ware companies will not immediately would result in a tax bill of up to $5bn
get cold feet. IBM performance scope, the region where it has most Another set of data on post-merger boost sales for a group with $80bn in and not free up capital. It would also
“We have been able to dramatically Revenue ($bn) Pre-tax profit employees and its intention to expand integration risks can offer qualitative annual revenue. “distract” from cost-cutting measures,
speed up and improve the process of ($bn) its software-as-a-service business assessments of how a possible acquisi- Nevertheless, IBM appears pleased to he has said.
acquisitions from identification and due 120 23 model. tion target differs from similar compa- be able to move quickly and chase mul- The chief executive has also argued
diligence through to integration and Forecast IBM’s scientists then refine their cal- nies IBM has bought in the past — such tiple M&A targets simultaneously. Cli- that pressure from regulators — a big
execution”, Mr Schroeter says. 100 22 culations each quarter as more data are as its development team being based ents have already asked about how they reason why Mr Icahn wants AIG to shed
IBM says it can now begin and finish a added. offshore. could use M&A Pro. Mr Price is not its “systemically important financial
deal in as little as three weeks. A 2014 80 21 What M&A Pro produces from its Finally, a financial dashboard shows aware of any similar algorithms in use institution” designation — does not
study from McKinsey, the consultancy, 60 20 regression analyses are visualisations of the performance of past deals against but believes pharmaceuticals R&D is a determine the group’s capital returns.
concluded that the companies that were integration risks, qualitative advice and the business plan at the time of acquisi- natural extension for deal risk analytics. The only “binding constraint”, Mr Han-
most effective at M&A typically finished 40 19 scorecards assessing the financial per- tion. Mr Price says IBM has “the best deal cock has said, is the stance of credit rat-
deals more quickly. formance of previous deals. Mr Price estimates that IBM ran M&A risk management in the industry”. ing agencies.
M&A Pro is constructed as a 20 18 Its assessments allow executives to Pro 30 or 40 times in 2015, adding that However, he acknowledges that — even AIG declined to comment on Bern-
“machine learning” system: an algo- 0 17 dig into each core risk it identifies. For the purpose was not to consolidate deal with its algorithmic approach — its deal- stein’s survey. It said: “As previously
rithm that learns to make judgments 2010 11 12 13 14 15 example, if M&A Pro reveals concerns decision-making among a handful of making record will not be perfect. “You announced, AIG will provide an update
based on historical data. Its core tech- about the sales function at a target com- people, but rather the opposite. are still bringing together two living, on its strategy and its proactive plan to
Source: Bloomberg
nology comes from SPSS, a computa- pany, it can go deeper into specifics such “Not everyone is an M&A process breathing organisms,” he says. drive shareholder value on January 26.”

Contracts & Tenders

Media Food & beverage

Chinese gaming company Japan’s Asahi weighs offer for

clinches date with Grindr
CHARLES CLOVER — BEIJING
US-based gay dating app Grindr has
sold a 60 per cent stake to a Chinese
gaming company, highlighting the
increasing role China is playing in
investing in the technology sector both
at home and abroad.
Gaming company Beijing Kunlun Tech
paid $155m for the stake in the first capi-
tal raising by Grindr, which operates in
196 countries.
Grindr called the investment “a huge
vote of confidence in our vision to con-
nect gay men to even more of the world
Are you cut out around them”. The app says it has 2m
regular visitors per day, who spend an
average of 54 minutes on the site.
we are constantly seeking a popular
international platform that will draw
gaming traffic and where we can adver-
tise ourselves and increase our presence
overseas. Grindr was a perfect match.
“It’s not so much that it’s a gay plat-
form as that we see its huge potential to
grow and be profitable.”
Zhou Yahui, chairman of Kunlun,
said: “We have been very impressed by
Grindr’s progress to date and are
extremely excited about the future of
the company. We will continue to seek
out and invest in high-quality technol-
ogy companies led by top-tier manage-
ment across the globe.”
The app, launched in 2009, posts pho-
tos and locations of gay men trying to
SABMiller’s Peroni and Grolsch
KANA INAGAKI — TOKYO
Asahi Group Holdings, Japan’s biggest
brewer, is weighing a bid for SAB-
Miller’s two European brands in a
move that could spark a costly global
takeover battle.
Anheuser-Busch InBev, which owns
Stella Artois and Corona, is planning to
put the Peroni and Grolsch brands up
for sale to head off European regulatory
concerns over its proposed £71bn acqui-
sition of SABMiller, according to people
familiar with the matter.
Asahi said yesterday that it was study-
ing various capital tie-ups including the
acquisition of the two brands. The news
sent its shares down as much as 3.4 per
pean foothold, which it could use to
boost sales of its Super Dry [beer]
brand,” Mr Morita said.
Asahi and other Japanese beverage
groups have been active buyers of for-
eign assets, under pressure to expand
sales beyond a shrinking home market.
Asahi’s overseas revenue increased
48 per cent between 2012 and 2014 to
Y233bn through merger and acquisi-
tion. The group owns 20 per cent of
China’s Tsingtao Brewery and it paid
Beer down:
Asahi is under
pressure to expand
sales beyond a
shrinking home

for an MBA? Chinese investors are becoming a

growing source of cash for US start-ups,
from search engine Baidu’s $600m
find partners.
According to Grindr, Kunlun has
agreed to let its management team stay
cent in Tokyo trading.
No price for the two brands has been
indicated, but the Yomiuri Shimbun,
market

$1.3bn in 2011 for New Zealand’s Inde-

investment in Uber in 2014 to Alibaba,
Find out with our free, online, self test the ecommerce company, backing mes-
saging app Tango in 2014.
workout. www.mbagym.com Kunlun is a leading games developer
and publisher in China. Its motivation
appears to be to diversify away from
games and into other lifestyle catego-
ries. The Grindr investment comes a few
months after the company backed
LendInvest, the UK peer-to-peer lender,
FT BUSINESS EDUCATION with a £22m investment.
Every Monday The company said it invested in
.............................................................................................................................................................
Classified Business Education Advertising
Grindr because of its strong messaging
UK: +44 20 7873 4906
platform and advertising service.
US: +1 212 641 6500
“About 70-80 per cent of our business
ASIA: +852 2905 5554
is in the international market,” Kunlun
said. “We built our name in gaming, so
on and refrain from making changes. “It
will generally be business as usual for us
here at Grindr, but with a renewed sense
of purpose and additional resources to
deliver a great product,” Joel Simkhai,
Grindr’s founder and chief executive,
said in a blogpost.
The dating sector has become increas-
ingly competitive. In November, Barry
Diller’s IAC launched an initial public
offering for Match Group, which
includes the company’s dating sites
Match.com, OKCupid and Tinder, for
nearly $400m.
Shares in Shenzhen-listed Kunlun
closed up 10 per cent yesterday.
Additional reporting by Ma Fangjing
Japan’s largest newspaper, reported at
the weekend that the assets could be
valued at as much as Y400bn ($3.4bn).
Other potential buyers include Dutch
group Heineken, US-based Molson
Coors and Ireland’s C&C Group, maker
of Bulmers and Magners ciders.
Analysts expect the final price tag to
be expensive with many global suitors
expected to bid. For Asahi, a deal — even
if costly — would provide a solid plat-
form for the company to expand in
Europe, according to Makoto Morita,
Daiwa Securities analyst.
“The brands have an established his-
tory and a solid fan base. They would
provide Asahi with a significant Euro-
pendent Liquor.
It has not been all smooth sailing for
Japan’s drinks groups. Asahi has
accused two buyout groups of allegedly
misleading it about the earnings of Inde-
pendent Liquor. Its overseas business,
which accounts for 13 per cent of total
sales, has also recorded an operating
loss for three years through 2014.
Last month, Kirin warned of its first
annual loss due to the deterioration of
its beer business in Brazil, acquired in
2011.
More broadly, Japanese contenders
are struggling to keep up with the
pace of large consolidation moves
worldwide.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 23
24
FCA may have reached right decision on bank probe by wrong means
The practice of “reservation” — giving
answers that are technically accurate
but tactically misleading — was honed
by medieval Jesuits. It appears to live
on at the Financial Conduct Authority.
The watchdog has insisted no external
body, including the Prudential
Regulation Authority, influenced its
decision to drop a probe into banking
culture. But the FT has revealed that an
executive director of the PRA oversaw
the move on secondment to the FCA.
This matters because the FCA is
meant to be an independent regulator.
It would no longer merit that title if the
Treasury or Bank of England — of
which the PRA is part — can yank its
chain. The cancellation of the culture
probe is particularly sensitive. Critics
cite it as evidence of pressure on the
FCA to go easy on cronies of the Tories
in the City.
Insurance
Direct Line puts
storm losses
at up to £140m
Shares gain as sector’s first
estimate of flood impact is
at low end of expectations
OLIVER RALPH
Direct Line has become the first insurer
to detail the impact of the recent storms
and flooding in the north of England and
Scotland, saying that losses from storms
Desmond, Eva and Frank would be
between £110m and £140m.
“We have been around almost every
property from Desmond, so we know
what the damage is,” said John Reizen-
stein, Direct Line’s chief financial
officer.
Most of the damage — between £80m
and £100m — will come from household
claims, with the remainder from the
commercial division.
The market reacted well to the news,
as some estimates of the company’s
losses had been higher. “The top end is
where people were, so our range is a bit
of an improvement” added Mr Reizen-
stein. “We have invested a lot in under-
standing . . . flood risk, so we are hope-
ful that we will have less impact than
our market share.”
Direct Line shares rose 2 per cent in
response to the news. Aviva and RSA,
which have also been affected by the
flooding, also saw their share prices rise,
recovering some of the ground lost since
the storms began in December.
Direct Line’s exposure to the floods
will not be helped much by its reinsur-
ance policies. Losses from a single event
have to reach £150m before the com-
pany can claim on its reinsurance, so the
damage from the recent floods falls
Banks
HSBC unlikely to quit London, says key investor Bulk annuity market hones risk assessment
MARTIN ARNOLD — BANKING EDITOR
One of HSBC’s biggest shareholders
has predicted that the lender will
decide to keep its headquarters in the
UK as Europe’s biggest bank prepares
to make a decision as early as this
month.
Martin Gilbert, chief executive of
Aberdeen Asset Management, said
in an interview with Bloomberg TV
yesterday: “The logistics of moving
their headquarters out of London are
so vast . . . I suspect, much as they
might want to move their headquar-
ters, they will probably on balance stay
here.”
The comments by the CEO of Aber-
deen, which is the fifth largest share-
holder in HSBC, come before the
bank’s board meets later this month
PRA director Megan Butler joined
the FCA at the start of September. At
the end of that month, she and another
director sponsored a paper which
recommended the FCA should
forswear recommending best practice.
This reduced the role of the watchdog
to “catalysing” — in other words,
serving lemonade at meetings where
“stakeholders” have a nice chinwag.
Defenders of the FCA faith believe
acting boss Tracey McDermott decided
to can the culture review earlier. If so,
what is the point of the other directors?
And why did it take the FCA until
December 17 to tell other regulators
about a decision the wider world then
only learnt about courtesy of the FT?
We need to disaggregate concerns
over the mechanics of the decision
from its validity. Labour MPs are
critical of the probe’s demise because it
had potential to bash banks. In reality,
a state body of middling competence
has no place dictating business culture.
It risks ridicule by doing so.
Labour MPs can, however, be
expected to ask necessary questions
about this murky affair. There is a
problem with Jesuitical equivocation,
below that limit. Only on some large
commercial claims, where the damage
on a single property exceeded £4m, will
the reinsurance be payable.
But that does not necessarily mean an
imminent rise in the amount of reinsur-
ance the company buys. “At this point
these events have not changed our view
of the norm for flood risk,” said Mr Rei-
zenstein. The company’s statement
noted there had been no claims from
significant weather events in the rest of
2015.
The Association of British Insurers
estimates that total exposure across the
industry for the three storms will reach
£1.3bn, with an average expected pay-
ment of £50,000 for each domestic
claim. However, research from Keefe,
Bruyette & Woods yesterday noted that,
based on the size of Direct Line’s expo-
sure and its market share, the ABI’s esti-
mate may turn out to be on the high — or
“prudent” — side.
It is unclear whether the impact of the
storms is severe enough to push up pre-
miums across the UK home insurance
market. “For those not affected by this
winter’s flooding, competition between
insurance companies for their business
is increasing, meaning people can
expect to renew their policies for lower
premiums — by about 1 per cent to 5 per
cent — if they shop around,” said
Mohammad Khan, UK general insur-
ance leader at PwC.
He added that anyone who had been
affected by flooding and was due to
renew the policy before April was likely
to see a rise in pricing. However, the
start of Flood Re — an industry reinsur-
ance scheme — in April should limit the
rise for people renewing after that date.
when it is likely to decide whether to
leave the UK.
HSBC said that it was reviewing its
domicile in April 2015, shortly before
the UK general election amid growing
anger inside the bank at the burden of
regulation and tax.
A decision had been due by the end of
last year, but it was delayed after the 19-
person board asked for more informa-
tion on some areas of the review.
The political mood in the UK has
shifted recently in favour of the City
of London since the Conservative
party won a clear victory in last May’s
election.
Since then, Prime Minister David
Cameron’s government has promised
to recalibrate the bank levy that
penalised banks with big overseas oper-
ations in a boost to HSBC, the biggest
★ FINANCIAL TIMES
UK COMPANIES
as select committee hearings may
show. It makes exponents look shifty if
they are rumbled.
A grocer ch-ch-changes
The sad death of David Bowie requires
journalists to infuse their work with
the spirit of the great pop chameleon
this week, no matter how incongruous
the material. It is therefore incumbent
on Lombard to ask which Bowie
persona suits Morrisons after better
than expected Christmas trading.
The pessimistic theory has been that
the Yorkshire grocer was undergoing a
late-career hiatus of the kind suffered
by Bowie following the strategically
misjudged Glass Spiders tour. But
optimists now imagine the company,
led by ex-Tesco guy David Potts, may
be in a sweeter spot.
Suppose a series of profits warnings
and the ousting of chief executive
Dalton Philips equate instead to
depressive seventies noodling by Bowie
in a studio beside the Berlin Wall.
Morrisons might then look forward to
surging popularity akin to Bowie’s
Screen break
Blockbusters
fuelCineworld
revenues
payer of the levy. Hong Kong has
long been considered to be the most
likely destination for HSBC if it did
decide to move, as the bank was based
there for more than 100 years. It still
earns about 80 per cent of its profit in
Asia.
However, growing concerns about the
political risk of the bank ending up
under Chinese control have prompted a
rethink, according to people familiar
with the matter.
Advisers to HSBC say that the US is
one of the few countries with an econ-
omy big enough to be able to comforta-
bly welcome a bank of its size.
HSBC has $2.6tn of assets, making it
almost as big as the entire British econ-
omy. Bankers also view US financial reg-
ulation as more accommodating of large
universal banks.
Serious Moonlight comeback.
The harbinger of this — a 0.2 per cent
improvement in festive like-for like
sales — is skinnier than a musician
subsisting on milk and cocaine.
Morrisons has closed 140 convenience
stores and 21 supermarkets, with seven
more of the latter to go. Discounters
are still raising market share at a rapid
rate. The UK’s third-largest quoted
grocer could theoretically flatter like-
for-like sales even as it lost market
share by closing underperforming
shops until only one store was left.
That is a gloomy view, Conversely,
it is too early to call the turn. But
Mr Potts is demonstrating the rigour
Mr Philips lacked. These numbers hint
at resurgent commercial potential, as
the pop funk of “Sound and Vision” did
amid the doomy synths of Bowie’s
Berlin album Low. In both pop and
business, reinvention extends careers.
Flood tied
Lombard once encountered a BBC TV
crew filming a large puddle in a town
that had escaped bad flooding. This
The return of James Bond and a fresh
chapter in the Star Wars saga fuelled
Cineworld’s double-digit revenue
growth last year and the chain’s empire
building plans across Europe.
The FTSE 250 cinema group said in a
trading update yesterday that,
excluding the effects of exchange rate
fluctuations, total revenues rose 12.3
per cent in 2015.
Based on that figure, analysts
forecast that Cineworld would report
revenues of about £707m and earnings
per share of about 28p when it
publishes its full-year results in March.
Israel Greidinger, deputy chief
executive of Cineworld, expressed
Insurance
OLIVER RALPH
The bulk annuity market is coming of
age. Research from the UK Pensions
Institute to be released today shows
that risk assessment for these deals is
gradually becoming more sophisti-
cated, amid predictions of a jump in
market activity this year.
Traditionally bulk annuity deals, in
which insurers take on all or some of a
company’s pension obligations in return
for a fee, have been priced based on
postcodes and average assumptions
for age and gender used by the whole
industry.
But a growing number are now medi-
cally underwritten, a process that
involves the insurers sending question-
naires to the employees and sometimes
also asking GPs for information.
winter’s deluge, while dreadful for
some householders and businesses, has
also been more localised than coverage
implied. That is one reason why Direct
Line, the first insurer to quantify its
loss, has undershot expectations with a
range of £110m-£140m. Another is
that investors expected a cost of £80m
for bad weather during the year, little
of which blew up until the autumn.
If any Schadenfreude is to be derived
from the floods, it is not from the plight
of those who, thanks to risky planning
decisions, dwell on flood plains (the
clue was in the name). It is that big
insurers, like their own customers, are
saddled with an “excess” which forces
them to absorb first losses on a claim.
The threshold specified by Direct
Line’s reinsurance contract per “flood
event” is £150m. This winter’s damage
comes nowhere close, not least because
the deluge involved two “events” —
Storm Desmond and conjoined twins
Eva and Frank. The tendency of storms
to merge underlines the silliness of
giving them names. What next? Grey
Cloud Graham?
jonathan.guthrie@ft.com
confidence that the company would
continue increasing its revenues in
2016, even though the slate of films
is weaker than in 2015.
“We’ll have more sites this year,”
he said. “Our main focus is building
new cinemas and renovating
existing cinemas.”
Cineworld now operates more
than 2,000 screens, having opened
18 sites in 2015, of which 10 were in
the UK.
The group, Europe’s second-
largest cinema chain by number of
screens, said it planned to open an
additional 13 sites in 2016 and to
revamp several cinemas.
Columbia Pictures
According to the Pensions Institute,
medically underwritten deals
accounted for 3 per cent of the bulk
annuity market for schemes worth
under £100m in 2013. By last year the
proportion had grown to 15 per cent.
“There has been a big jump,” said
David Blake of the Pensions Institute,
one of the authors of the report. “There
is a push and a pull. The consultants
have started to spread the word to trus-
tees, and the trustees can save 5-10 per
cent on the price.”
Last month, Legal & General
announced the UK’s largest medically
underwritten bulk annuity deal, which
covered £230m of liabilities. Aviva is
also active in the market, along with
Partnership and Just Retirement
(whose merger is due to complete in the
first quarter of the year), which tend to
Wednesday 13 January 2016
Briefs
GSK
Copycat challenge
GlaxoSmithKline has moved a step
closer to losing US market
exclusivity on its best-selling
asthma drug after Mylan sought
regulatory approval for the first
generic version of Advair.
The filing with the US Food and
Drug Administration highlights the
challenge facing GSK as it
scrambles to revive growth while
coping with decline in a product
that has been a mainstay of the
business for more than a decade.
GSK has been bracing for the
arrival of generic Advair since the
expiry of its US patent in 2010. An
additional patent on the Diskus
inhaler used to deliver the drug has
so far kept competitors at bay.
The Diskus patent expires next
year and analysts said yesterday
that if the regulatory process went
smoothly Mylan’s product was likely
to reach market next year.
Jeffrey Holford at Jefferies said
investors had been aware that
Mylan and Novartis were working
on copycat versions of Advair, but it
was “only now we have a confirmed
filing that the market can start to
fully factor in the potential timing
and impact”. This would put
“further pressure on management
in a key recovery year”, he added.
Sir Andrew Witty, chief executive,
above, has promised to return GSK
to growth this year after a period of
poor performance. Advair already
faces generic competition in Europe
and price pressure in the US.
The drug accounted for 13 per
cent of group sales in the third
quarter last year, down from almost
a fifth two years ago. Half the sales
are in the US. Andrew Ward
Just Eat
Consistent growth
Online takeaway service Just Eat
served up a robust 2015, with
orders up more than 50 per cent as
it maintained a strong growth rate.
The UK group said yesterday that
total orders in the 12 months to
December 31 had risen 57 per cent
year on year, helped by revenues
from acquisitions such as French
business Alloresto.fr, Mexican
subsidiary Sindelantal.mx, and
Menulog, focused on Australia
and New Zealand.
Like-for-like orders were 46 per
cent higher than the previous year.
The consistency of Just Eat’s
growth has been met favourably by
investors, with the share price rising
more than 40 per cent in 12 months.
Executives said the rate was likely
to taper as the online takeaway
market matured.
David Buttress, chief executive,
said: “International expansion has
helped . . . with our long-term
potential for growth. But we’re
delighted with the performance
with our existing businesses.”
Just Eat acts as an internet
marketplace, matching diners to
restaurants that have their own
couriers to deliver food. Analysts
have said it takes 10-15 per cent of
each transaction.
The shares were down 3.4 per
cent by mid-afternoon following a
recent rise. Murad Ahmed
focus on the smaller end of the market.
The issue of whether the deals are
medically underwritten is important to
the companies selling the liabilities and
the insurers buying them, but it should
make little difference to the people
whose pensions are covered. As mem-
bers of defined benefit pension
schemes, their payments are fixed.
The bulk annuity market as a whole is
expected to grow as companies look to
offload their pension obligations.
Willis Towers Watson expects the
bulk annuity market to pick up sharply
this year after a lull in 2015. “One of the
main reasons for the dip was the prepa-
rations for Solvency II, which were time
consuming for the insurers,” said Shelly
Beard, senior consultant at Willis. The
EU’s Solvency II rules were introduced
at the start of January.
Wednesday 13 January 2016
Morrisons wins back shoppers from rivals
Chain’s sales grow for the
first time in 4 years after
improved festive period
PETER CAMPBELL
AND NATHALIE THOMAS
Wm Morrison announced its first sales
growth in four years as it won back cus-
tomers from rivals such as discounters
Aldi and Lidl over the Christmas period.
The chain, Britain’s fourth-largest
grocer by revenues, announced like-for-
like sales growth of 0.2 per cent in the
nine weeks to January 3, surprising ana-
lysts who expected a fall of about 2 per
cent. It is a marked improvement from
the previous Christmas, when like-for-
like sales fell 3.3 per cent.
Bulk deals on alcohol and larger packs
of fruit and vegetables helped the super-
market attract more shoppers. The
company has been closing branches and
cutting costs and prices in a bid to halt
15 consecutive quarters of falling sales.
Shares in Morrisons closed up 8.7 per
cent at 165.5p in London yesterday.
Bet on warmer weather pays off for Debenhams
Shares leap after store chain
leaves rivals behind with
decision to reduce coat stocks
ALIYA RAM
Debenhams bucked a trend of weak
Christmas sales on the high street, with
the retailer saying that stock planning
and online trading helped it avoid the
negative impact of unseasonal weather
which has held back rivals.
Shares in Debenhams jumped nearly
16 per cent yesterday after the depart-
ment store chain said it had reduced
stock levels of coats and jumpers in
anticipation of a warmer November and
December.
“It’s quite obvious for everybody to
see that over the course of the last few
years the weather has been somewhat
unseasonal and having learned les-
sons . . . we reduced lines of outerwear,”
said chief executive Michael Sharp in a
nod to competitors such as Next and
Marks and Spencer, which last week
blamed a warm autumn for poor cloth-
ing sales.
Debenhams posted like-for-like sales
growth of 3.5 per cent in constant cur-
rencies for the 19 weeks to January 9,
compared with 0.3 per cent in the same
period last year, beating analysts’ expec-
tations of a small drop.
Online sales rose 12.1 per cent com-
pared with last year, while click-and-
collect orders — which are cheaper for
retailers because they eliminate the cost
of the so-called last mile to a customer’s
door — accounted for a third of online
revenues.
“It was always the case we were com-
ing from behind with online sales but
we’ve caught up very, very quickly,” said
Mr Sharp.
Investors had been apprehensive
about trading at Debenhams after the
results from Next and M&S. However, a
better than expected performance
online and more sales at full price
boosted the group’s revenues.
“In the context of what has been a soft
and competitive UK clothing market
from October onwards, we regard
Debenhams [like-for-like growth] as
strong,” analysts from Citi Retail
Retail
Boohoo cheered by shift to online shopping
ALIYA RAM
Boohoo beat analysts’ expectations to
post healthy sales over the Christmas
period, offering a first glimpse of how
online-only retailers have weathered
festive trading in the UK.
The fashion website aimed at young
shoppers said yesterday that sales rose
49 per cent to £73.7m at constant cur-
rency rates in the four months to
December 31, compared with 43 per
cent growth last year.
It said full-year sales growth was now
likely to be “marginally above” previous
guidance of 30-35 per cent, although
gross margins fell during the period due
to discounting and currency swings.
Investors were watching whether the
group’s sales would hold up over the
winter after Next and Marks and Spen-
cer both blamed a slide in clothing sales
on warmer weather in November.
Boohoo issued a profit warning last
January after unseasonable weather and
Black Friday discounting disrupted
sales in the run-up to Christmas.
“We have continued to optimise the
The Bradford-based retailer’s update
comes ahead of festive trading results
from J Sainsbury and Tesco this week.
The big grocers have been grappling
with the ascent of the discounters, while
more disruption is likely with Amazon’s
entry into the food delivery market.
The latest figures from Kantar, the
research group, showed Aldi and Lidl
gained significant market share after
attracting 1m more shoppers than last
Christmas.
Although the figures showed Morri-
sons’ sales fell 2.6 per cent, this did not
take account of the fact it sold its 140-
store convenience business and closed
another 21 large supermarkets.
Morrisons said its total sales for the
‘We’ve had to look
carefully in the whole
of the business’
David Potts, Morrisons
Research wrote in a note. They added
that the “majority of like-for-like
growth came from online with store-
based sales a very small positive”.
Figures from the British Retail Con-
Debenhams performance
Pre-tax profit (£m)
160
140
120
100
0 0
2008 09 10 11 12 13 14 15
Sources: Bloomberg; eMarketer
mix of promotional and marketing
spend to drive strong retail growth,” said
joint chief executives Mahmud Kamani
and Carol Kane.
“Operational successes include the
new warehouse extension entering into
full service, giving us the capacity
required for business expansion, and
the new UK app, which has improved
the overall shopping experience.”
After investing in discounts to com-
pete with established high street retail-
ers, Boohoo reported gross margins of
57 per cent for the period, down 290
basis points on 2014. But analysts said
sales growth would drive improved
margins.
“Boohoo has delivered another quar-
ter of stronger than expected top-line
growth, driven by selective investment,
in delivery promotions in the UK and in
Fashion website
Boohoo said its
new UK app helped
it post a 49% rise
in sales for the last
quarter of the year
★ FINANCIAL TIMES
Christmas period fell 1.2 per cent once
these factors were taken into account.
Online sales accounted for 0.9 per cent
of sales growth — leaving sales from
stores negative once its internet busi-
ness was stripped out.
Asda, the third-largest supermarket
by sales, has announced it will put
another £500m into cutting prices.
David Potts, Morrisons chief execu-
tive, did not rule out further reductions
in price, adding: “Our intention is to be
more competitive over time. Price is
really, really important and there’s more
to go for on price and it’s important that
we organise ourselves on that.”
Morrisons will close another seven
lossmaking supermarkets. The closures
put 680 jobs at risk. “We’ve had to look
carefully in the whole of the business,”
said Mr Potts, but he added the pro-
gramme to close stores has finished.
The company is considering a return
to convenience retailing through a deal
with petrol station operator Motor Fuel
Group.
It has opened an outlet in Crewe and
Retailers. Sales rise
sortium published yesterday showed a 3
percentage point rise from online chan-
nels to year-on-year growth in non-food
sales in the UK, while growth from
bricks-and-mortar stores dipped 1 per-
Holiday season ecommerce*
Sales (£bn) % of total holiday
retail sales
2012 13 14
* UK only. Covers Nov and Dec each year
pricing in international markets,” said
James Collins, retail analyst at Stifel.
“This comes at the expense of gross
margins but drives strong leverage into
marketing costs and should continue to
benefit lifetime customer value.”
Boohoo’s sales growth outside Europe
slipped from 70 per cent a year before to
63 per cent.
But with figures from the British
Retail Consortium showing a 15.1 per
cent increase in online sales of non-food
products in the UK, negative impacts
abroad were offset by a wider shift to
online shopping in Britain. According to
the BRC almost £1 in every £5 in the UK
was spent online in December.
Online appliance retailer AO World
also yesterday reported strong sales in a
third-quarter trading update.
Revenue rose 35 per cent year on year
compared with 38 per cent in the same
period the year before, while UK sales
rose 24 per cent.
Shares in Boohoo closed 6.85 per cent
higher at 39p in London, while AO
World added 2.4 per cent to close at
150p.
UK RETAIL
plans to open five stores as part of a pilot
programme before determining
whether to roll out the model further.
“This is a great result for Morrisons
having significantly improved trading
over the Christmas period,” said Bruno
Monteyne, an analyst at Bernstein.
“These results are a big improvement
Grocers at Christmas
Market share of consumer spending,
12 weeks to Jan 3 (%)
4.5 Other
2.1 Iceland
4.2 Lidl
5.2 Waitrose
5.5 Aldi
6 The Co-operative
11 Morrisons
16.2 Asda
Sainsbury's
17
Tesco
28.3
Source: Kantar Worldpanel
centage point. “Click and collect contin-
ued to be instrumental, providing con-
venience for consumers and equipping
smaller-format stores with extended
product ranges during the busy Christ-
mas period,” said Helen Dickinson,
chief executive of the BRC.
“There were also some knock-on ben-
efits, such as encouraging greater foot-
fall into stores, in turn inspiring impulse
buys.”
20
Mr Sharp estimated that the number
of customers through Debenhams’
15 doors rose in December, compared with
a broader fall on the high street.
10 But unlike M&S and Next, Deben-
hams’ trading figures include sales from
the first week of January.
5
“Debenhams is the first major retailer
to report on the additional trading
weeks following Christmas, and per-
15 formance suggests this was strong,”
said Michelle Wilson, analyst at Beren-
berg. “Less discounting and a lower
Business Leaders
with positive like-for-like sales despite
high deflation from price cuts.”
Analysts at Jefferies said the results
“suggest we are at a turn,” adding: “the
group appears in great shape to deliver
from here. There are reasons to look at
2016 with greater confidence”.
Morrisons last year ousted its former
chief executive Dalton Philips after sev-
eral years of poor performance and has
an almost entirely new board, led by
chairman Andrew Higginson, a former
Tesco director, and Mr Potts, who
worked at Tesco for 39 years.
Sainsbury’s last week highlighted how
the big supermarket chains are seeking
new ways to compete, when it admitted
to making a takeover approach to Home
Retail Group, the owner of Argos and
DIY chain Homebase.
Sainsbury’s signalled it was interested
in buying Argos for its delivery network
and to offer customers the opportunity
to buy a greater range of non-food prod-
ucts. Argos last year launched a same-
day home delivery service in the UK.
See Lombard
Store of value: the group has
produced strong trading figures
including sales from the first week
of the year — Matthew Lloyd/Bloomberg
level of promotional activity is a key
positive.”
Mr Sharp said less stock was dis-
counted over the period compared with
2014 and that price reductions were
smaller.
Debenhams has been under pressure
from shareholders, with calls for man-
agement changes last year amid poor
sales. The department store group
posted a particularly poor performance
2013 but there have been signs of
improvement more recently, with pre-
tax profit rising for the first time in four
years in 2015.
The chain had lost almost a third of its
market value since the beginning of
November, but yesterday its shares
closed up nearly 16 per cent at 76.5p.
Mr Sharp is due to step down from
Debenhams this year after five years in
the top job. “When I do leave I want to be
in a position to hand this over in a good
state to a successor,” he said.
25
Greggs to
trial health
options to
counter
slowdown
CHRIS TIGHE
Greggs, the UK’s largest bakery retailer,
is expanding its range of healthy
options and coffee as it strives to coun-
ter a slowdown in sales over the Christ-
mas period.
The group, known for its sausage rolls,
revealed in a trading update that like-
for-like sales in its shops rose 2.3 per
cent in the fourth quarter of 2015, com-
pared with 6 per cent a year earlier. That
was lower than the 4.7 per cent growth
recorded for the year as a whole.
Greggs said it had expected slower
like-for-like sales growth in the fourth
quarter due to stronger comparatives
and the impact of weaker footfall in
some shopping locations. It anticipates
full-year results, to be announced on
March 1, to be in line with previous
expectations.
However, its shares, which reached a
five-year high of £13.55p in July 2015,
fell sharply yesterday, closing down 14
per cent at £10.49p.
Roger Whiteside, chief executive,
said: “Presumably some shareholders
were hoping for us to exceed expecta-
tions. We were very pleased we deliv-
ered on expectations.”
Greggs said it would trial some gluten-
free products in 2016 as it explored
more new options.
It is soon to add a flat white and an
improved mocha to its coffee menu. The
group’s coffee sales now exceed £1m per
week and its Balanced Choice range of
healthier food accounts for 10 per cent
of total sales, it said.
Its healthier sandwiches, salads and
no-added-sugar drinks were proving
particularly strong lines, even though
sausage rolls remained its biggest-
selling single product, it said.
However, Mr Whiteside stressed that
the business was maintaining its mass
appeal and not attempting to move
upmarket.
“People right across the spectrum are
concerned about their diet and want to
eat healthy choices,” he said. “All the
research says Greggs is a brand which
appeals right across the whole spectrum
of consumers. We want them to come
more frequently.”
Sahill Shan, senior consumer analyst
at joint house brokers N+1 Singer, said:
“Investors over the recent period have
become accustomed to upgrades from
Greggs. The fact there was no upgrade
on the back of the year-end update was
deemed a disappointment by a certain
section of the market.”
Greggs has 1,698 shops, having
opened 122 and closed 74 in 2015.
£10.49p 10%
Greggs’ share Proportion of
price yesterday, sales accounted
having fallen 14% for by Balanced
from July 2015 Choice range
26 FINANCIAL TIMES Wednesday 13 January 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 $

-2.71% -0.89% -0.17% -0.184% -1.101% -1.39%

0.19% 0.55% 0.08% 0.98% 1.05% 0.503% 0.937% 1.38%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 13 - Jan 12 Index All World Dec 13 - Jan 12 Index All World Dec 13 - Jan 12 Index All World Dec 13 - Jan 12 Index All World Dec 13 - Jan 12 Index All World Dec 13 - Jan 12 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,052.23 10,673.60 19,492.60
12,937.59 6,135.22 1,927.82
5,871.83 1,890.86
1,927.37 12,249.41 9,985.43 17,218.96
Day 0.19% Month -4.21% Year -5.73% Day -0.57% Month -4.18% Year -14.09% Day 0.98% Month -0.40% Year -8.81% Day 1.63% Month -3.15% Year NaN% Day -2.71% Month -10.46% Year 0.12% Day -0.21% Month -2.96% Year -1.76%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,045.17 21,704.61
1,428.08 9,428.50 2,848.46
4,663.30 41,901.96
40,938.02 1,349.16 8,915.40 19,711.76 2,691.78
Day 0.55% Month -5.46% Year -0.85% Day 0.57% Month -2.53% Year -2.02% Day 1.05% Month -3.43% Year -0.56% Day 0.33% Month -7.43% Year -8.27% Day -0.89% Month -8.16% Year -17.59% Day -0.63% Month -5.04% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,574.75 44,872.47 21,538.04
3,434.58
4,473.07 25,044.43 24,682.03
4,378.75 19,970.10
16,410.96 39,644.84 3,022.86
Day 0.08% Month -4.94% Year -7.47% Day -0.77% Month -12.36% Year -17.60% Day 1.53% Month -3.75% Year 4.78% Day 1.08% Month -4.97% Year 8.83% Day 0.20% Month -11.99% Year -7.99% Day -0.58% Month -1.45% Year -10.11%

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 10637.41 10955.95 Cyprus CSE M&P Gen 66.38 66.08 Italy FTSE Italia All-Share 21705.04 21465.82 Philippines Manila Comp 6330.55 6288.26 Taiwan Weighted Pr 7768.45 7788.42 Cross-Border DJ Global Titans ($) 220.37 219.99
Australia All Ordinaries 4982.20 4990.70 Czech Republic
PX 919.62 918.64 FTSE Italia Mid Cap 32790.81 32348.06 Poland Wig 44256.02 43241.06 Thailand Bangkok SET 1255.30 1234.50 Euro Stoxx 50 (Eur) 3068.90 3027.49
S&P/ASX 200 4925.10 4932.20 Denmark OMXC Copenahgen 20 967.17 955.72 FTSE MIB 19970.10 19756.14 Portugal PSI 20 5134.66 5046.50 Turkey BIST 100 71048.98 70613.20 Euronext 100 ID 858.18 848.76
S&P/ASX 200 Res 2134.50 2205.20 Egypt EGX 30 6634.98 6782.35 Japan 2nd Section 4467.10 4590.12 PSI General 2448.96 2410.14 UAE Abu Dhabi General Index 4025.26 4085.53 FTSE 4Good Global ($) 5069.29 5050.43
Austria ATX 2216.71 2200.99 Estonia OMX Tallinn 893.79 888.31 Nikkei 225 17218.96 17697.96 Romania BET Index 6570.53 6608.41 UK FT 30 2772.30 2737.30 FTSE All World 246.06 246.47
Belgium BEL 20 3518.44 3494.14 Finland OMX Helsinki General 8374.97 8285.10 S&P Topix 150 1154.72 1191.68 Russia Micex Index 1690.30 1682.54 FTSE 100 5929.24 5871.83 FTSE E300 1349.16 1335.11
BEL Mid 5714.34 5696.08 France CAC 40 4378.75 4312.74 Topix 1401.95 1447.32 RTX 695.32 699.13 FTSE 4Good UK 5417.89 5366.88 FTSE Eurotop 100 2664.20 2637.32
Brazil Bovespa 39644.84 39950.49 SBF 120 3463.16 3413.56 Jordan Amman SE 2117.58 2114.94 Saudi-Arabia TADAWUL All Share Index 6068.75 6176.91 FTSE All Share 3277.84 3251.72 FTSE Global 100 ($) 1225.00 1222.37
Canada S&P/TSX 60 721.13 723.44 Germany M-DAX 19627.76 19219.43 Kenya NSE 20 3910.14 3929.92 Singapore FTSE Straits Times 2691.78 2708.85 FTSE techMARK 100 3866.17 3841.54 FTSE Gold Min ($) 909.94 934.18
S&P/TSX Comp 12249.41 12319.25 TecDAX 1714.46 1698.13 Kuwait KSX Market Index 535.76 538.70 Slovakia SAX 293.05 295.42 USA DJ Composite 5657.43 5657.50 FTSE Latibex Top (Eur) 1995.80 2020.80
S&P/TSX Met & Min 261.45 277.19 XETRA Dax 9985.43 9825.07 Latvia OMX Riga 598.21 592.35 Slovenia SBI TOP 680.53 681.03 DJ Industrial 16410.96 16398.57 FTSE Multinationals ($) 1386.04 1390.58
Chile IGPA Gen 17460.71 17543.69 Greece Athens Gen 594.26 581.68 Lithuania OMX Vilnius 488.78 483.82 South Africa FTSE/JSE All Share 48396.18 48322.68 DJ Transport 6932.71 6914.56 FTSE World ($) 436.93 437.55
China FTSE A200 8298.53 8243.82 FTSE/ASE 20 169.99 165.72 Luxembourg LuxX 1276.91 1283.56 FTSE/JSE Res 20 23763.21 24261.53 DJ Utilities 578.37 582.21 FTSEurofirst 100 (Eur) 3761.37 3728.48
FTSE B35 10387.75 10314.18 Hong Kong Hang Seng 19711.76 19888.50 Malaysia FTSE Bursa KLCI 1641.37 1637.59 FTSE/JSE Top 40 43489.37 43482.54 Nasdaq 100 4312.10 4283.55 FTSEurofirst 80 (Eur) 4135.36 4084.78
Shanghai A 3164.07 3157.71 HS China Enterprise 8439.31 8505.16 Mexico IPC 40938.02 40706.89 South Korea Kospi 1890.86 1894.84 Nasdaq Cmp 4663.30 4637.99 MSCI ACWI Fr ($) 373.10 374.75
Shanghai B 359.38 356.23 HSCC Red Chip 3502.59 3562.03 Morocco MASI 8836.93 8836.93 Kospi 200 230.55 230.83 NYSE Comp 9517.63 9527.66 MSCI All World ($) 1557.59 1561.47
Shanghai Comp 3022.86 3016.70 Hungary Bux 24302.45 23900.68 Netherlands AEX 416.41 411.31 Spain IBEX 35 8915.40 8886.10 S&P 500 1927.37 1923.67 MSCI Europe (Eur) 1318.50 1324.30
Shenzhen A 1940.03 1932.42 India BSE Sensex 24682.03 24825.04 AEX All Share 640.19 633.68 Sri Lanka CSE All Share 6534.35 6650.32 Wilshire 5000 19860.04 19848.27 MSCI Pacific ($) 2176.49 2181.65
Shenzhen B 1186.91 1180.40 S&P CNX 500 6405.45 6451.85 New Zealand NZX 50 6112.35 6102.83 Sweden OMX Stockholm 30 1356.69 1348.64 Venezuela IBC 14598.62 14591.32 S&P Euro (Eur) 1377.40 1360.07
Colombia COLCAP 1098.32 1105.73 Indonesia Jakarta Comp 4512.53 4465.48 Nigeria SE All Share 26350.18 27028.39 OMX Stockholm AS 473.60 470.83 Vietnam VNI 564.26 557.87 S&P Europe 350 (Eur) 1381.97 1368.98
Croatia CROBEX 1633.01 1635.94 Ireland ISEQ Overall 6629.07 6554.26 Norway Oslo All Share 589.13 591.52 Switzerland SMI Index 8332.04 8213.52 S&P Global 1200 ($) 1715.96 1716.49
Israel Tel Aviv 100 12.83 12.78 Pakistan KSE 100 32265.65 32320.05 Stoxx 50 (Eur) 2904.55 2876.59
(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 Jan 12 %Chg %Chg Jan 12 %Chg %Chg Jan 12 %Chg %Chg Jan 12 %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 23.6 99.67 1.14 Shire 252.7 4114.00 45.69 Bbva 1034.1 6.21 -0.06 Toyota Motor 819.1 6755.00 -109.00 Bae Systems 521.50 6.0 4.9 Morrison (wm) Supermarkets 165.50 11.1 11.7 Uk Mail 277.38 10.9 13.1 Food & Drug Retailers 2517.79 4.1 0.6
Facebook Class A 12.6 99.17 1.66 Bp 148.6 323.10 -0.68 Novartis N 586.4 74.28 0.00 Mitsubishi Ufj Fin,. 545.6 677.00 -30.70 Tesco 155.20 5.7 2.1 Debenhams 76.50 6.8 3.8 Photo-me Int 159.00 8.0 8.1 Aerospace & Defense 4140.58 1.4 0.0
Amazon.com 12.6 622.46 4.72 Royal Dutch Shell 145.3 1351.00 -6.44 Sap Se O.n. 414.0 71.60 0.00 Sony 433.0 2675.00 -149.50 Sainsbury (j) 251.20 3.8 -2.9 Vectura 186.60 4.6 6.0 Oxford Biomedica 7.80 7.2 20.0 Fixed Line Telecommunication 5292.72 0.9 -0.5
Hospira 11.8 89.95 -0.01 Hsbc Holdings 139.5 505.10 2.76 Santander 371.0 4.13 0.05 Sumitomo Mitsui Fin,. 417.9 4156.00 -153.00 Worldpay 315.00 3.6 2.5 Rathbone Brothers 2338.00 4.3 6.3 Foxtons 196.50 6.1 4.8 Mobile Telecommunications 5104.44 0.6 -0.1
Netflix 9.4 116.47 1.50 Bg 128.7 920.10 1.11 Nestle N 344.7 64.66 0.00 Softbank . 412.0 5528.00 -167.00 Berkeley Holdings (the) 3672.00 3.3 -0.4 Jd Sports Fashion 1019.00 4.1 1.5 Xaar 451.00 6.1 7.4 Industrial Transportation 2543.91 0.3 -2.1
Alphabet Class A Common Stock 8.6 741.50 8.43 Bhp Billiton 123.4 617.90 -9.35 Total 324.2 37.25 -0.10 Fast Retailing Co., 404.3 37630.00 -510.00 Kingfisher 336.50 3.0 2.5 Marshalls 332.50 4.0 2.6 Aquarius Platinum Ld 12.00 5.3 5.3 Gas Water & Multiutilities 5914.99 0.2 -0.4
Microsoft 7.3 52.34 0.04 Royal Dutch Shell 123.1 1349.00 -6.00 Roche Gs 318.7 240.23 0.00 Mizuho Fin,. 369.1 221.80 -7.60 Tui Ag 1269.00 3.0 4.9 Computacenter 867.00 3.8 1.8 Costain 386.00 5.2 3.3 Tobacco 45455.39 0.1 -1.4
Alphabet Class C Capital Stock 7.0 721.20 5.17 Glaxosmithkline 116.9 1363.50 17.89 Daimler Ag Na O.n. 299.7 68.13 0.00 Fanuc 304.8 18800.00 -325.00 Bt 473.40 1.9 0.4 Telecity 1294.00 3.6 3.6 Carclo 148.75 4.6 17.1 Household Goods 16045.12 -0.4 -2.8
Bank Of America 6.4 15.22 -0.09 Rio Tinto 107.5 1652.00 -45.00 Unicredit 295.1 4.68 0.00 Honda Motor Co., 276.7 3503.00 1.00 National Grid 949.00 1.7 1.2 Wizz Air Holdings 1839.00 2.9 1.0 Speedy Hire 41.50 4.4 -0.6 Beverages 15288.66 -0.4 -0.8
Exxon Mobil 6.3 73.64 -0.05 Astrazeneca 103.0 4324.00 68.50 Eni 262.0 12.65 0.00 Fuji Heavy Industries 262.9 4359.00 -56.00 Carnival 3907.00 1.3 0.1 Moneysupermarket.com 372.60 2.7 1.5 Charles Taylor 260.00 4.3 3.5 Travel & Leisure 8833.66 -1.1 -2.4
Imperial Tobacco 3589.50 1.3 -0.1 Euromoney Institutional Investor 1024.00 2.7 3.1 Hss Hire 76.00 4.1 5.6 Media 7221.89 -1.2 -2.5
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
Vodafone 221.30 1.0 0.4 Laird 353.50 2.1 -0.4 Hilton Food 553.00 3.9 3.2 General Industrials 4298.64 -1.2 -2.2
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Cognizant Technology Solutions 59.05 2.93 5.22 Debenhams 76.50 10.05 15.23 B. Sabadell 1.61 0.08 4.94 Honda Motor Co., 3503.00 1.00 0.03 Sports Direct Int 412.00 -25.4 -28.6 Tullow Oil 123.10 -25.1 -25.7 Premier Oil 19.00 -56.1 -60.8 Industrial Metals 608.65 -15.3 -15.9
Anthem 134.83 6.47 5.04 Vedanta Resources 234.00 26.40 12.72 Peugeot 14.98 0.68 4.76 Advantest 950.00 -4.00 -0.42 Glencore 72.00 -17.3 -19.3 Cairn Energy 128.30 -17.2 -18.8 Lonmin 55.00 -22.8 -34.1 Mining 6137.47 -14.7 -16.3
Aetna 108.97 3.90 3.71 Morrison (wm) Supermarkets 165.50 13.20 8.67 Orange 15.82 0.63 4.15 Yaskawa Electric 1424.00 -6.00 -0.42 Antofagasta 374.10 -16.3 -20.3 Evraz 61.80 -15.0 -15.6 Nanoco 49.00 -21.0 -14.8 Oil Equipment & Services 11195.39 -14.0 -14.0
Campbell Soup 53.07 1.67 3.25 Anglo American 232.50 19.84 8.61 Kpn Kon 3.45 0.11 3.42 Ntt Docomo,. 2411.50 -19.00 -0.78 Bhp Billiton 617.90 -16.0 -17.5 Vedanta Resources 234.00 -14.9 -15.0 Enquest 14.50 -20.5 -23.7 Oil & Gas Producers 5088.44 -9.3 -10.0
Medtronic 75.21 2.21 3.03 Tesco 155.20 7.19 4.95 Essilor Intl. 111.80 3.45 3.18 Toho Co.,ltd 3120.00 -35.00 -1.11 Rio Tinto 1652.00 -14.8 -16.5 Poundland 167.70 -14.7 -19.1 Hunting 240.75 -18.0 -21.2 Life Insurance 7142.18 -5.5 -8.8
Shire 4114.00 -12.3 -15.5 Amec Foster Wheeler 367.60 -14.6 -13.6 Lamprell 73.00 -17.3 -26.6 Food Producers 8283.63 -4.8 -6.7
Downs Downs Downs Downs
Royal Dutch Shell 1349.00 -12.1 -12.6 Greggs 1049.00 -14.2 -16.9 Gem Diamonds 110.25 -11.6 -16.2 Chemicals 10157.19 -4.5 -5.7
Freeport-mcmoran 3.82 -0.50 -11.48 Greggs 1049.00 -133.25 -10.88 Edf 11.96 -0.55 -4.36 Aeon Co., 1602.00 -177.50 -9.97
Royal Dutch Shell 1351.00 -11.7 -11.7 Hays 121.20 -13.8 -15.8 Ite 139.50 -11.3 -11.6 Pharmaceuticals & Biotech. 12255.17 -4.4 -5.2
Williams Companies 16.68 -2.01 -10.75 Tullow Oil 123.10 -9.60 -7.23 Arcelormittal 3.20 -0.13 -3.93 Sumco 784.00 -76.00 -8.84
Anglo American 232.50 -11.6 -16.4 Ophir Energy 81.40 -13.5 -14.7 Imagination 117.00 -11.2 -12.4 Real Estate Investment Trusts 3131.07 -4.0 -3.8
Consol Energy 6.36 -0.64 -9.14 Talktalk Telecom 189.50 -12.10 -6.00 Iberdrola 6.25 -0.16 -2.54 Sumitomo Metal Mining Co., 1224.50 -101.50 -7.65
Aberdeen Asset Management 244.30 -10.3 -14.7 Petrofac 668.50 -13.3 -14.8 Tyman 252.25 -10.7 -12.6 Industrial Engineering 6664.08 -4.0 -6.9
Alcoa 7.27 -0.73 -9.13 Michael Page Int 410.50 -26.53 -5.94 Zodiac Aerospace 19.61 -0.48 -2.36 Mitsui O.s.k.lines, 264.00 -20.00 -7.04
Johnson Matthey 2547.00 -9.6 -9.5 Allied Minds 358.50 -13.2 -10.4 Johnston Press 44.00 -10.2 -12.7 General Financial 8848.22 -3.9 -6.4
Chesapeake Energy 3.82 -0.35 -8.31 Hays 121.20 -6.98 -5.38 Endesa 17.89 -0.35 -1.92 Minebea Co., 943.00 -64.00 -6.36
Hargreaves Lansdown 1353.00 -8.5 -10.2 Nostrum Oil & Gas 340.20 -12.9 -14.1 Jpmorgan Chinese Investment Trust 148.50 -9.4 -12.2 Banks 3580.81 -3.8 -6.1
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
Jan 12 Currency Mid Change Mid Change Mid Change Jan 12 Currency Mid Change Mid Change Mid Change Jan 12 Currency Mid Change Mid Change Mid Change Jan 12 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 13.5438 -0.3204 14.6626 -0.3857 19.4603 -0.6871 Indonesia Indonesian Rupiah 13910.0000 35.0000 15059.0163 -0.9072 19986.5291 -176.5499 Poland Polish Zloty 4.0252 0.0058 4.3576 -0.0049 5.7835 -0.0573 ..Three Month 0.6960 0.0078 0.7533 0.0065 - -
Australia Australian Dollar 1.4325 0.0023 1.5508 -0.0016 2.0582 -0.0201 Israel Israeli Shekel 3.9356 -0.0049 4.2606 -0.0163 5.6548 -0.0715 Romania Romanian Leu 4.1873 0.0127 4.5331 0.0021 6.0164 -0.0499 ..One Year 0.6963 0.0079 0.7526 0.0065 - -
Bahrain Bahrainin Dinar 0.3766 -0.0003 0.4077 -0.0014 0.5410 -0.0066 Japan Japanese Yen 117.9450 0.5900 127.6876 0.3105 169.4685 -1.0709 Russia Russian Ruble 76.5325 0.5194 82.8543 0.3497 109.9652 -0.4965 United States United States Dollar - - 1.0826 -0.0028 1.4368 -0.0163
Bolivia Bolivian Boliviano 6.9100 - 7.4808 -0.0193 9.9286 -0.1130 ..One Month 117.9449 0.5899 127.6876 0.3106 169.4684 -1.0711 Saudi Arabia Saudi Riyal 3.7535 -0.0016 4.0635 -0.0122 5.3931 -0.0636 ..One Month - - 1.0825 -0.3706 1.4368 -0.0163
Brazil Brazilian Real 4.0479 -0.0039 4.3822 -0.0155 5.8161 -0.0718 ..Three Month 117.9447 0.5894 127.6876 0.3106 169.4681 -1.0717 Singapore Singapore Dollar 1.4382 0.0036 1.5570 -0.0002 2.0665 -0.0184 ..Three Month - - 1.0823 -0.3706 1.4369 -0.0163
Canada Canadian Dollar 1.4272 0.0084 1.5451 0.0051 2.0507 -0.0111 ..One Year 117.9435 0.5870 127.6876 0.3106 169.4684 -1.0728 South Africa South African Rand 16.5678 -0.1034 17.9363 -0.1586 23.8053 -0.4212 ..One Year - - 1.0812 -0.3705 1.4372 -0.0163
Chile Chilean Peso 731.1600 -1.1800 791.5557 -3.3255 1050.5626 -13.6685 Kenya Kenyan Shilling 102.4000 - 110.8585 -0.2864 147.1328 -1.6742 South Korea South Korean Won 1210.2500 0.5500 1310.2198 -2.7876 1738.9399 -18.9875 Venezuela Venezuelan Bolivar Fuerte 6.3053 0.0203 6.8261 0.0043 9.0597 -0.0737
China Chinese Yuan 6.5755 -0.0061 7.1187 -0.0250 9.4480 -0.1164 Kuwait Kuwaiti Dinar 0.3041 0.0003 0.3292 -0.0005 0.4369 -0.0045 Sweden Swedish Krona 8.5622 0.0253 9.2695 0.0035 12.3026 -0.1032 Vietnam Vietnamese Dong 22429.5000 -20.5000 24282.2766 -84.9670 32227.7081 -396.4840
Colombia Colombian Peso 3246.1500 -20.8300 3514.2912 -31.6874 4664.2117 -83.3418 Malaysia Malaysian Ringgit 4.4075 0.0270 4.7716 0.0170 6.3329 -0.0328 Switzerland Swiss Franc 1.0036 0.0019 1.0864 -0.0007 1.4419 -0.0136 European Union Euro 0.9237 0.0024 - - 1.3272 -0.0116
Costa Rica Costa Rican Colon 534.3300 -0.4200 578.4671 -1.9502 767.7487 -9.3461 Mexico Mexican Peson 17.9148 -0.0020 19.3946 -0.0523 25.7407 -0.2958 Taiwan New Taiwan Dollar 33.4305 0.0185 36.1919 -0.0734 48.0344 -0.5197 ..One Month 0.9236 0.0024 - - 1.3272 -0.0116
Czech Republic Czech Koruna 24.9594 0.0635 27.0211 -0.0009 35.8627 -0.3159 New Zealand New Zealand Dollar 1.5319 0.0047 1.6584 0.0008 2.2010 -0.0182 Thailand Thai Baht 36.3300 0.0650 39.3310 -0.0311 52.2005 -0.4995 ..Three Month 0.9234 0.0024 - - 1.3270 -0.0116
Denmark Danish Krone 6.8917 0.0178 7.4610 0.0000 9.9023 -0.0868 Nigeria Nigerian Naira 199.2300 0.1900 215.6869 -0.3509 286.2623 -2.9811 Tunisia Tunisian Dinar 2.0478 0.0040 2.2169 -0.0014 2.9423 -0.0277 ..One Year 0.9223 0.0024 - - 1.3264 -0.0117
Egypt Egyptian Pound 7.8300 0.0234 8.4768 0.0035 11.2505 -0.0940 Norway Norwegian Krone 8.9035 -0.0503 9.6390 -0.0795 12.7930 -0.2187 Turkey Turkish Lira 3.0330 -0.0012 3.2835 -0.0097 4.3579 -0.0513
Hong Kong Hong Kong Dollar 7.7615 -0.0014 8.4026 -0.0232 11.1520 -0.1289 Pakistan Pakistani Rupee 104.9050 -0.0100 113.5704 -0.3042 150.7321 -1.7296 United Arab Emirates UAE Dirham 3.6729 -0.0001 3.9763 -0.0104 5.2774 -0.0603
Hungary Hungarian Forint 292.3518 -0.2593 316.5008 -1.0990 420.0637 -5.1565 Peru Peruvian Nuevo Sol 3.4250 0.0005 3.7079 -0.0090 4.9212 -0.0553 United Kingdom Pound Sterling 0.6960 0.0078 0.7535 0.0066 - -
India Indian Rupee 66.8750 0.0950 72.3990 -0.0839 96.0889 -0.9553 Philippines Philippine Peso 47.4700 0.2000 51.3911 0.0843 68.2070 -0.4855 ..One Month 0.6960 0.0078 0.7534 0.0066 - -
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 Jan 12 Jan 11 Jan 08 Jan 07 Jan 06 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 2772.30 2737.30 2750.20 2752.40 2803.90 0.00 2875.90 2722.80 Leisure Goods 2.01 Consumer Goods -3.62 Chemicals -5.48 FTSE 100 Price Change FTSE 100 Price Change
Jan 12 chge% Index Jan 11 Jan 08 ago yield% Cover ratio adj Return FT 30 Div Yield 1.81 1.83 1.82 1.82 1.78 0.00 3.93 2.74 Mobile Telecomms 0.64 Health Care Eq & Srv -3.82 Personal Goods -5.50 3I Group PLC 452.60 6.20 Kingfisher PLC 336.50 5.90
FTSE 100 (100) 5929.24 0.98 6140.73 5871.83 5912.44 6542.20 4.19 1.46 16.32 0.90 4646.35 P/E Ratio net 24.69 24.37 24.46 24.55 25.04 0.00 19.44 14.26 Telecommunications -0.20 Electricity -3.85 Technology -6.05 Aberdeen Asset Management PLC 244.30 -5.60 Land Securities Group PLC 1125 7.00
FTSE 250 (250) 16687.91 0.18 17283.15 16658.32 16732.66 16084.97 2.69 1.93 19.30 5.11 11618.24 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Aerospace & Defense -0.29 Health Care -3.87 Food Producers -6.25 Admiral Group PLC 1635 20.00 Legal & General Group PLC 245.70 0.90
FTSE 250 ex Inv Co (209) 18123.47 0.13 18769.92 18099.94 18189.65 17336.74 2.72 2.02 18.22 4.68 12865.48 FT 30 hourly changes Gas Water & Multi -0.91 Pharmace & Biotech -3.87 Financials -6.41 Anglo American PLC 232.50 2.05 Lloyds Banking Group PLC 69.30 0.37
FTSE 350 (350) 3323.96 0.83 3442.52 3296.49 3317.83 3584.26 3.92 1.52 16.79 0.59 5250.26 8 9 10 11 12 13 14 15 16 High Low Fixed Line Telecomms -1.41 Nonlife Insurance -3.94 Industrial Eng -6.44 Antofagasta PLC 374.10 -13.60 London Stock Exchange Group PLC 2584 50.00
FTSE 350 ex Investment Trusts (309) 3299.53 0.84 3417.22 3271.99 3293.59 3562.89 3.95 1.52 16.60 0.56 2683.43 2737.3 2755.7 2769.1 2784.5 2793.9 2790.6 2788.9 2789.9 2779.6 2795.4 2737.3 Utilities -1.52 Industrials -3.98 Financial Services -6.75 Arm Holdings PLC 980.00 27.00 Marks And Spencer Group PLC 426.80 4.00
FTSE 350 Higher Yield (108) 2989.99 0.66 3096.64 2970.50 2991.51 3506.94 5.82 1.28 13.42 0.80 4844.21 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Beverages -1.83 FTSE 250 Index -4.00 Banks -7.14 Ashtead Group PLC 1026 6.00 Merlin Entertainments PLC 441.70 4.00
FTSE 350 Lower Yield (242) 3347.89 1.01 3467.31 3314.43 3333.90 3311.38 2.03 2.20 22.35 0.31 3543.87 Food & Drug Retailer -2.29 Real Est Invest & Tr -4.03 Forestry & Paper -8.32 Associated British Foods PLC 3049 13.00 Mondi PLC 1256 39.00
FTSE SmallCap (290) 4470.96 0.01 4630.44 4470.43 4493.29 4393.96 2.93 1.37 24.95 2.67 6133.04 Industrial Transport -2.57 Real Est Invest & Se -4.04 Oil & Gas Producers -8.39
FTSE SmallCap ex Inv Co (155) 4052.23 -0.17 4196.77 4058.93 4080.70 3831.34 2.89 1.80 19.21 1.77 5836.26 FX: EFFECTIVE INDICES FTSE SmallCap Index -3.05 Household Goods & Ho -4.22 Oil & Gas -8.51
Astrazeneca PLC 4324 68.50 National Grid PLC 949.00 8.00
Aviva PLC 480.70 7.00 Next PLC 6770 -15.00
FTSE All-Share (640) 3277.84 0.80 3394.76 3251.72 3272.61 3523.04 3.88 1.52 16.99 0.64 5237.54 Tobacco -3.21 Electronic & Elec Eq -4.28 Tech Hardware & Eq -8.78
Jan 11 Jan 08 Mnth Ago Jan 12 Jan 11 Mnth Ago Babcock International Group PLC 954.50 12.50 Old Mutual PLC 159.50 3.90
FTSE All-Share ex Inv Co (464) 3238.77 0.82 3354.30 3212.41 3233.53 3488.31 3.93 1.53 16.64 0.56 2677.65 Travel & Leisure -3.27 NON FINANCIALS Index -4.47 Life Insurance -8.97 Bae Systems PLC 521.50 -5.00 Pearson PLC 694.00 11.50
FTSE All-Share ex Multinationals (575) 1148.79 0.68 986.10 1141.04 1145.67 1133.55 2.91 1.56 22.00 0.25 1958.74 Australia 88.41 88.17 92.40 Sweden 79.57 79.56 79.04 Software & Comp Serv -3.30 General Retailers -4.68 Automobiles & Parts -9.73 Barclays PLC 202.35 2.65 Persimmon PLC 2009 18.00
FTSE Fledgling (100) 7603.65 0.09 7874.87 7597.11 7613.15 6938.80 2.53 1.18 33.37 7.84 13716.03 Canada 82.88 83.04 86.54 Switzerland 158.67 159.19 159.63 Media -3.55 Support Services -4.82 Basic Materials -10.79 Barratt Developments PLC 609.50 15.00 Provident Financial PLC 3229 29.00
FTSE Fledgling ex Inv Co (50) 10571.16 0.13 10948.22 10556.98 10584.57 8677.55 2.67 1.44 25.97 0.00 18531.61 Denmark 106.05 106.21 105.76 UK 89.49 89.26 92.44 Consumer Services -3.56 FTSE All{HY-}Share Index -4.98 Oil Equipment & Serv -11.65 Berkeley Group Holdings (The) PLC 3672 134.00 Prudential PLC 1371 7.50
FTSE All-Small (390) 3102.69 0.02 3213.36 3102.20 3117.60 3038.56 2.91 1.36 25.27 1.92 5464.92 Japan 131.96 131.35 126.45 USA 106.22 106.05 105.44 Equity Invest Instr -3.56 Construct & Material -5.25 Mining -12.02 Bg Group PLC 920.10 2.40 Randgold Resources LD 4188 -163.00
FTSE All-Small ex Inv Co Index (205) 3027.58 -0.15 3135.57 3032.23 3048.17 2844.58 2.88 1.79 19.41 1.27 5524.79 New Zealand 111.53 111.62 114.66 Euro 86.31 86.65 85.93 FTSE 100 Index -5.28 Industrial Metals & -13.16 Bhp Billiton PLC 617.90 -18.20 Reckitt Benckiser Group PLC 6076 99.00
FTSE AIM All-Share Index (855) 720.87 0.11 746.58 720.07 725.62 702.24 1.51 0.65 101.94 0.26 776.11 Norway 82.31 82.55 84.63
BP PLC 323.10 -4.95 RELX PLC 1176 16.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3698 49.50 Rio Tinto PLC 1652 -45.00
Oil & Gas (18) 5370.73 -0.75 5562.30 5411.57 5479.99 7207.77 7.01 0.20 71.42 0.00 4498.33 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 745.00 4.00 Rolls-Royce Holdings PLC 556.00 4.00
Oil & Gas Producers (11) 5114.10 -0.73 5296.52 5151.78 5216.75 6869.12 7.03 0.16 87.90 0.00 4429.09 Bt Group PLC 473.40 10.40 Royal Bank Of Scotland Group PLC 283.40 3.00
Oil Equipment Services & Distribution (7)11725.99 -1.44 12144.24 11896.94 12058.13 15310.50 6.50 1.41 10.92 0.00 8623.98 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1848 18.00 Royal Dutch Shell PLC 1349 -6.00
Basic Materials (28) 2356.96 -1.41 2441.03 2390.71 2446.31 4586.28 8.69 1.88 6.12 1.30 2312.23 Burberry Group PLC 1103 19.00 Royal Dutch Shell PLC 1351 -3.00
Chemicals (7) 10882.76 1.62 11270.94 10708.86 10883.19 12378.78 2.64 2.27 16.73 35.08 9385.57 Jan 12 No of US $ Day Mth YTD Total
YTD Gr Div Jan 12 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1166 10.00 Royal Mail PLC 440.10 5.00
Forestry & Paper (1) 14762.43 3.20 15289.00 14304.05 14374.57 12705.57 2.44 3.37 12.13 0.00 15334.81 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3907 70.00 Rsa Insurance Group PLC 407.00 0.60
Industrial Metals & Mining (2) 627.63 -0.59 650.02 631.35 635.27 1496.33 1.83 -18.64 -2.92 0.00 547.73 FTSE Global All Cap 7744 421.27 -0.5 -5.0 -6.6 576.60
-6.6 2.7 Oil & Gas 164 276.87 -2.0 -2.0 -9.2 423.15 -9.2 4.7 Centrica PLC 206.60 0.40 Sabmiller PLC 4058.5 8.50
Mining (18) 5896.31 -2.42 6106.63 6042.64 6201.45 13122.75 10.59 1.85 5.10 0.00 3027.26 FTSE Global All Cap 7107 433.64 -0.5 -4.9 -6.5 583.15
-6.5 2.6 Oil & Gas Producers 116 259.13 -2.0 -2.0 -9.2 403.06 -9.2 4.6 Coca-Cola Hbc AG 1415 8.00 Sage Group PLC 589.50 1.50
FTSE Global Large Cap 1416 372.52 -0.4 -5.0 -6.6 521.59
-6.5 2.8 Oil Equipment & Services 39 251.58 -1.9 -1.9 -9.4 350.75 -9.4 5.2 Compass Group PLC 1146 13.00 Sainsbury (J) PLC 251.20 7.90
Industrials (119) 4199.35 0.49 4349.14 4178.88 4191.75 4287.72 2.62 1.19 32.02 0.03 4172.85
Construction & Materials (14) 5119.78 0.82 5302.40 5078.09 5092.06 4268.89 2.29 -0.81 -53.93 0.00 5231.64 FTSE Global Mid Cap 1637 563.05 -0.6 -5.0 -6.5 735.56
-6.5 2.2 Basic Materials 261 319.19 -1.6 -1.6 -9.2 467.86 -9.2 3.7 Crh PLC 1867 19.00 Schroders PLC 2683 36.00
Aerospace & Defense (9) 4302.25 0.02 4455.71 4301.38 4296.00 4932.80 2.66 0.96 39.25 0.00 4447.65 FTSE Global Small Cap 4691 583.73 -0.8 -5.4 -6.9 740.60
-6.9 2.2 Chemicals 122 540.46 -1.2 -1.2 -8.6 794.41 -8.6 2.8 Dcc PLC 5320 -25.00 Severn Trent PLC 2129 -1.00
General Industrials (6) 3491.22 1.15 3615.75 3451.67 3450.98 3206.59 3.27 1.67 18.36 0.00 3800.79 FTSE All-World 3053 246.47 -0.4 -5.0 -6.5 355.91
-6.5 2.7 Forestry & Paper 16 183.60 0.0 0.0 -6.4 294.89 -6.4 3.7 Diageo PLC 1837 31.50 Shire PLC 4114 189.00
Electronic & Electrical Equipment (10) 5170.10 0.44 5354.51 5147.42 5144.11 5108.73 2.39 1.97 21.32 0.00 4578.68 FTSE World 2538 437.55 -0.3 -5.0 -6.4 848.35
-6.4 2.7 Industrial Metals & Mining 67 228.26 -2.3 -2.3 -11.3 336.14 -11.3 3.7 Direct Line Insurance Group PLC 371.30 9.10 Sky PLC 1103 17.00
Industrial Engineering (14) 7139.76 0.61 7394.43 7096.42 7153.16 9014.31 3.43 1.57 18.52 0.00 8360.02 FTSE Global All Cap ex UNITED KINGDOM In 7419 433.16 -0.5 -5.0 -6.5 584.66
-6.5 2.6 Mining 56 290.52 -3.0 -3.0 -10.2 425.72 -10.2 7.4 Dixons Carphone PLC 473.20 9.30 Smith & Nephew PLC 1160 22.00
Industrial Transportation (8) 3854.23 1.21 3991.71 3808.19 3834.94 4089.89 3.94 0.94 27.07 0.00 3242.44 FTSE Global All Cap ex USA 5740 387.87 -1.0 -5.4 -7.0 563.00
-7.0 3.2 Industrials 534 278.91 -0.3 -0.3 -6.8 387.65 -6.8 2.5 Easyjet PLC 1720 2.00 Smiths Group PLC 890.00 2.00
Support Services (58) 6346.98 0.43 6573.37 6319.79 6348.76 6318.44 2.39 1.52 27.62 0.08 6369.31 FTSE Global All Cap ex JAPAN 6482 427.73 -0.6 -5.1 -6.8 590.61
-6.8 2.7 Construction & Materials 109 388.60 -0.8 -0.8 -7.3 565.33 -7.2 2.3 Experian PLC 1133 32.00 Sports Direct International PLC 412.00 9.00
FTSE Developed 2101 399.73 -0.3 -4.9 -6.3 551.22
-6.3 2.7 Aerospace & Defense 28 484.84 0.3 0.3 -4.3 668.02 -4.3 2.2 Fresnillo PLC 681.50 - Sse PLC 1471 -4.00
Consumer Goods (40) 17906.14 1.54 18544.84 17635.30 17639.30 16384.96 3.07 1.73 18.86 0.46 12632.00
FTSE Developed All Cap 5737 418.76 -0.3 -5.0 -6.4 571.23
-6.4 2.6 General Industrials 56 201.36 -0.3 -0.3 -7.2 300.59 -7.2 2.8 Gkn PLC 288.30 9.60 St. James's Place PLC 918.00 11.00
Automobiles & Parts (1) 6775.18 3.44 7016.85 6549.58 6542.53 8384.97 2.95 1.53 22.15 0.00 6230.73
FTSE Developed Large Cap 916 369.91 -0.2 -4.9 -6.3 517.06
-6.3 2.8 Electronic & Electrical Equipment 69 290.77 -0.8 -0.8 -8.1 372.74 -8.1 2.1 Glaxosmithkline PLC 1363.5 16.00 Standard Chartered PLC 513.90 7.30
Beverages (6) 15302.16 1.02 15847.98 15147.05 15145.38 14260.64 2.50 1.65 24.31 0.00 10422.66
FTSE Developed Europe Large Cap 219 306.19 -0.8 -5.8 -7.2 482.44
-7.2 3.8 Industrial Engineering 104 495.14 -0.4 -0.4 -7.6 677.13 -7.6 2.9 Glencore PLC 72.00 -1.43 Standard Life PLC 368.30 4.90
Food Producers (10) 8365.15 0.68 8663.53 8308.95 8360.34 8285.60 1.96 1.39 36.61 3.94 7003.56
FTSE Developed Europe Mid Cap 302 477.58 -0.8 -5.4 -6.8 684.19
-6.8 2.7 Industrial Transportation 96 459.26 -0.5 -0.5 -7.2 636.78 -7.2 2.6 Hammerson PLC 582.50 5.00 Taylor Wimpey PLC 198.90 4.00
Household Goods & Home Construction (13)13424.47 1.77 13903.31 13190.36 13202.63 10535.69 2.17 2.54 18.17 0.00 9132.29
FTSE Dev Europe Small Cap 721 683.51 -1.0 -5.0 -6.6 953.70
-6.6 2.4 Support Services 72 259.56 0.0 0.0 -5.9 346.86 -5.9 2.1 Hargreaves Lansdown PLC 1353 4.00 Tesco PLC 155.20 9.75
Leisure Goods (2) 5524.54 -0.78 5721.59 5567.74 5587.83 4968.95 4.33 1.32 17.45 0.00 4678.94
FTSE North America Large Cap 318 410.48 0.1 -4.5 -6.0 540.77
-5.9 2.4 Consumer Goods 422 393.36 0.1 0.1 -5.6 559.61 -5.5 2.6 Hikma Pharmaceuticals PLC 2192 36.00 Travis Perkins PLC 1930 -
Personal Goods (6) 21569.52 2.16 22338.89 21114.23 21254.33 21994.48 3.03 3.01 10.98 0.00 13915.92
FTSE North America Mid Cap 393 597.80 -0.5 -5.4 -6.6 738.18
-6.6 1.9 Automobiles & Parts 103 347.26 0.3 0.3 -9.0 474.42 -9.0 2.8 HSBC Holdings PLC 505.10 7.30 Tui AG 1269 18.00
Tobacco (2) 45455.47 1.64 47076.83 44720.30 44564.37 41875.93 4.39 1.18 19.37 0.00 27701.59
FTSE North America Small Cap 1522 593.72 -0.6 -6.3 -7.5 713.42
-7.4 1.9 Beverages 48 552.28 0.2 0.2 -3.4 796.82 -3.4 2.5 Imperial Tobacco Group PLC 3589.5 78.00 Unilever PLC 2827.5 64.50
Health Care (19) 9028.66 1.75 9350.70 8873.65 9121.81 9556.48 3.87 3.53 7.32 0.00 6583.17
FTSE North America 711 273.73 0.0 -4.6 -6.1 369.53
-6.0 2.3 Food Producers 106 529.60 -0.4 -0.4 -5.2 775.59 -5.1 2.3 Inmarsat PLC 1110 3.00 United Utilities Group PLC 937.50 1.00
Health Care Equipment & Services (7) 7109.21 1.37 7362.79 7013.47 7093.40 6697.48 1.60 2.16 29.04 0.00 6027.64
FTSE Developed ex North America 1390 211.53 -0.7 -5.3 -6.7 329.36
-6.7 3.2 Household Goods & Home Construction 47 379.47 0.1 0.1 -5.5 536.54 -5.5 2.4 Intercontinental Hotels Group PLC 2515 -10.00 Vodafone Group PLC 221.30 0.50
Pharmaceuticals & Biotechnology (12)12167.08 1.78 12601.07 11953.93 12307.07 13024.70 4.09 3.58 6.83 0.00 7880.29
FTSE Japan Large Cap 177 313.03 0.3 -4.3 -4.5 391.56
-4.5 2.1 Leisure Goods 28 122.22 -0.7 -0.7 -7.3 157.32 -7.3 1.5 International Consolidated Airlines Group S.A. 598.50 9.00 Whitbread PLC 4199 -
Consumer Services (97) 4784.90 1.18 4955.57 4729.07 4739.18 4641.90 2.37 1.60 26.38 0.36 4319.32 FTSE Japan Mid Cap 303 474.14 0.3 -3.1 -3.5 572.87
-3.5 1.6 Personal Goods 79 561.34 -0.5 -0.5 -6.1 760.83 -6.1 2.1
Food & Drug Retailers (7) 2625.38 4.06 2719.02 2522.91 2549.81 3173.54 2.04 -1.50 -32.65 0.00 3002.13 Intertek Group PLC 2725 36.00 Wolseley PLC 3450 26.00
FTSE Global wi JAPAN Small Cap 782 506.94 0.3 -2.4 -3.7 632.19
-3.7 1.9 Tobacco 11 1211.44 1.6 1.6 -0.5 2367.37 -0.5 4.0 Intu Properties PLC 300.90 3.70 Worldpay Group PLC 315.00 5.30
General Retailers (32) 2813.89 1.02 2914.26 2785.60 2803.62 2869.04 2.57 2.24 17.35 0.18 3084.57
FTSE Japan 480 130.49 0.3 -4.0 2.0 Health Care
-4.3 183.41
-4.3 173 428.91 -1.3 -1.3 -6.4 597.50 -6.4 2.0 Itv PLC 269.20 3.10 Wpp PLC 1483 30.00
Media (22) 7314.77 1.27 7575.69 7223.13 7246.96 6723.39 2.80 1.62 22.10 1.47 4319.42
FTSE Asia Pacific Large Cap ex Japan 530 493.18 -2.0 -5.9 -8.8 737.73
-8.8 3.6 Health Care Equipment & Services 61 614.51 -1.0 -1.0 -5.4 704.78 -5.4 1.0 Johnson Matthey PLC 2547 67.00
Travel & Leisure (36) 8627.99 0.47 8935.75 8587.55 8558.78 7959.64 1.99 1.95 25.73 0.00 7863.13
FTSE Asia Pacific Mid Cap ex Japan 430 688.31 -2.2 -3.7 -7.8 993.05
-7.8 3.1 Pharmaceuticals & Biotechnology 112 324.46 -1.5 -1.5 -6.7 469.62 -6.7 2.3
Telecommunications (7) 3988.96 0.88 4131.25 3954.21 3990.48 3789.89 4.10 0.18 133.12 0.00 4179.85 FTSE Asia Pacific Small Cap ex Japan 1424 465.97 -2.0 -2.8 -6.7 663.26
-6.7 2.9 Consumer Services 386 369.84 0.1 0.1 -5.1 480.55 -5.1 1.8
Fixed Line Telecommunications (5) 5379.76 1.84 5571.66 5282.51 5329.76 4618.65 2.88 1.74 19.96 0.00 4665.61
Mobile Telecommunications (2) 5096.72 0.23 5278.51 5085.02 5132.44 5158.08 4.93 -0.44 -46.12 0.00 4766.80
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960
2007
391.91
520.95
-2.0
-2.3
-5.6
-5.7
-8.7 623.11
-8.7 3.5 Food & Drug Retailers
-8.8 743.09
-8.8 3.4 General Retailers
54 282.48
121 507.71
-1.3
0.9
-1.3
0.9
-5.8 381.96
-4.7 643.67
-5.7
-4.7
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8300.74 0.46 8596.82 8262.97 8271.89 8725.36 4.88 1.36 15.02 0.00 8840.04 FTSE Emerging Large Cap 500 488.49 -2.4 -6.4 -9.3 701.09
-9.3 3.5 Media 87 274.82 -0.6 -0.6 -5.0 357.95 -4.9 2.0 Jan 12 Jan 11 Jan 08 Jan 07 Jan 06 Yr Ago
Electricity (2) 8420.29 -0.14 8720.64 8431.67 8449.64 9059.23 5.99 1.35 12.40 0.00 11201.40 FTSE Emerging Mid Cap 452 657.49 -2.2 -3.3 -7.4 933.29
-7.4 3.1 Travel & Leisure 124 360.61 0.4 0.4 -5.5 473.01 -5.5 1.8 SEAQ Bargains 5618.00 4970.00 4970.00 4970.00 5843.00 4808.00
Gas Water & Multiutilities (5) 7817.26 0.61 8096.10 7770.09 7776.41 8168.50 4.61 1.37 15.86 0.00 8358.08 FTSE Emerging Small Cap 1055 573.04 -2.1 -3.2 -6.9 787.82
-6.9 3.2 Telecommunication 92 151.58 -0.2 -0.2 -3.7 267.79 -3.3 4.4 Order Book Turnover (m) 39.16 35.69 35.69 35.69 65.39 35.41
Financials (285) 4303.32 0.88 4456.82 4265.70 4279.53 4625.99 3.81 1.87 14.03 2.60 3760.80 FTSE Emerging Europe 99 246.82 -3.5 -6.9 -7.6 362.72
-7.5 4.6 Fixed Line Telecommuniations 44 128.60 0.1 0.1 -3.0 249.14 -2.3 4.8 Order Book Bargains 1053764.00 986020.00 986020.00 986020.00 1194751.00 895039.00
Banks (9) 3535.69 1.19 3661.80 3494.13 3500.84 4231.01 4.65 1.37 15.76 0.00 2437.26 FTSE Latin America All Cap 244 545.15 -0.7 -10.1 -8.9 805.81
-8.9 4.0 Mobile Telecommunications 48 156.83 -0.7 -0.7 -4.8 250.28 -4.8 3.7 Order Book Shares Traded (m) 1522.00 1457.00 1457.00 1457.00 1772.00 1301.00
Nonlife Insurance (11) 2729.63 0.89 2826.99 2705.55 2722.87 2296.35 2.76 2.06 17.59 0.00 4587.44 FTSE Middle East and Africa All Cap 220 556.76 -3.0 -2.2 -10.0 830.15
-10.0 3.0 Utilities 161 232.09 0.0 0.0 -2.2 425.25 -2.1 4.0 Total Equity Turnover (£m) 2715.83 0.01 0.01 0.01 3005.07 3358.59
Life Insurance/Assurance (11) 7249.56 0.97 7508.15 7179.63 7228.33 7658.16 4.18 1.59 15.06 0.00 6655.18 FTSE Global wi UNITED KINGDOM All Cap In 325 305.70 -0.7 -5.8 4.0 Electricity
-7.1 483.19
-7.1 110 255.07 0.0 0.0 -1.5 462.41 -1.5 3.8 Total Mkt Bargains 1174833.00 8.00 8.00 8.00 1304209.00 990201.00
Index- Real Estate Investment & Services (21) 2966.12 -0.11 3071.92 2969.33 2959.76 2711.71 2.14 5.73 8.15 0.00 7625.34 FTSE Global wi USA All Cap 2004 470.27 0.0 -4.7 -6.2 603.05
-6.1 2.2 Gas Water & Multiutilities 51 243.22 0.0 0.0 -3.4 456.97 -3.4 4.5 Total Shares Traded (m) 4801.00 0.00 0.00 0.00 5118.00 4635.00
Real Estate Investment Trusts (25) 2842.44 0.60 2943.83 2825.58 2834.87 2828.29 3.11 5.94 5.42 4.93 3364.97 FTSE Europe All Cap 1401 354.24 -0.9 -5.7 -7.1 541.29
-7.1 3.5 Financials 675 185.41 -0.4 -0.4 -7.6 288.17 -7.6 3.2 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7574.34 0.79 7844.51 7515.25 7538.16 7275.60 3.06 2.20 14.87 24.67 8247.01 FTSE Eurobloc All Cap 637 333.30 -0.7 -6.0 -7.1 515.08
-7.1 3.2 Banks 243 163.43 -0.4 -0.4 -8.4 270.69 -8.4 3.7 (c) Market closed.
Equity Investment Instruments (176) 7440.47 0.38 7705.87 7412.50 7432.78 7590.94 2.71 1.08 34.17 5.13 3915.51 FTSE RAFI All World 3000 3006 5066.44 -0.5 -5.3 -6.6 6385.04
-6.6 3.4 Nonlife Insurance 71 202.88 -0.2 -0.2 -5.4 282.41 -5.4 2.4
Non Financials (355) 3805.88 0.78 3941.63 3776.61 3805.13 4089.55 3.91 1.39 18.37 0.18 5330.03 FTSE RAFI US 1000 999 8315.78 0.0 -4.4 -6.0 10521.50
-5.9 2.7 Life Insurance 51 177.36 -1.4 -1.4 -10.5 269.11 -10.5 3.2
Technology (20) 1382.79 1.04 1432.11 1368.53 1354.34 1237.59 1.43 1.92 36.56 0.00 1729.16 FTSE EDHEC-Risk Efficient All-World 3053 297.06 -0.6 -4.1 -5.8 399.35
-5.8 2.5 Financial Services 141 204.16 0.0 0.0 -8.2 272.12 -8.1 2.1 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 1795.28 -0.21 1859.32 1799.15 1785.17 1373.96 1.83 1.74 31.41 0.00 2353.37 FTSE EDHEC-Risk Efficient Developed Europe 521 261.75 -0.9 -4.7 -6.3 382.17
-6.2 2.9 Technology 185 162.81 0.2 0.2 -6.6 194.28 -6.5 1.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1505.42 2.36 1559.12 1470.77 1451.53 1521.88 1.01 2.25 43.91 0.00 1728.08 Software & Computer Services 85 291.43 -0.2 -0.2 -6.0 334.54 -6.0 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 117.29 0.7 0.7 -7.2 143.98 -7.1 2.7 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 5868.51 5886.31 5918.18 5953.86 5977.22 5973.23 5979.11 5969.90 5943.96 5985.34 5867.49 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 16691.25 16675.63 16718.52 16766.72 16805.12 16768.82 16783.57 16760.56 16700.36 16805.12 16668.54 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4484.78 4483.70 4480.97 4480.75 4481.66 4480.51 4485.14 4483.37 4476.33 4485.69 4470.96
FTSE All-Share 3251.77 3258.99 3274.31 3291.54 3303.08 3300.07 3303.27 3298.35 3284.84 3306.02 3250.90 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:14:45:45 Day's Low08:10:45 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5871.83(11/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:14:46:00 Day's Low08:11:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3251.72(11/01/2016)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Avesco Group Pre 133.674 126.391 3.208 0.43L 18 7.2L 5 4.5 Apr 6 7 6 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Best of the Best Int 4.976 3.834 0.478 0.431 3.68 3.77 - - - - - 12/24 144.00 AIM DNL Diurnal Group PLC 148.50 0.00 155.00 148.00 7753.3
460p nil 19-01-16 772.50 760.50 RPC Group PLC 772.50 6.50 Ilika Int 0.254 0.606 1.875L 1.573L 3L 2L - - - - - 12/17 2.00 LVRT Levrett PLC 2.25 0.00 3.10 1.75 215.4
12/17 100.00 AIM PURP Purplebricks Group PLC 86.00 -0.50 106.50 85.30 20662.3
12/11 3.50 AIM WEY Wey Education PLC 4.25 0.00 4.37 3.88 399.4

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 13 January 2016 FINANCIAL TIMES 27

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) ArcherDan 34.04 -0.13 53.31 33.84 3.01 12.39 20310.04 Lockheed 216.24 0.89 227.91 181.91 2.63 20.23 66449.58
ANZ 25.05 -0.10 37.25 24.95 9.85 10.21 51020.54 Nokia 6.90 0.01 7.87 4.91 1.99 -48.49 29804.89 AstellasPh 1606.5 -70.50 2047 1514.5 1.86 22.31 30262.92 AtlasCpcoB 179.70 -0.80 270.00 173.50 1.62 16.13 8189.71 AT&T♦ 33.88 -0.08 36.45 30.97 5.26 37.65 208399 Lowes 73.00 0.32 78.13 64.22 1.30 24.77 66802.64
BHPBilltn 15.01 -0.54 34.29 15.01 15.42 17.56 33653.64 SampoA 44.95 0.46 49.40 38.30 4.24 15.27 27192.88 Bridgestne 3885 -84.00 5182 3753.5 2.89 12.06 26782.84 Ericsson 78.90 0.85 120.00 75.30 4.06 26.67 30455.15 AutomData 78.79 0.28 90.67 64.29 2.36 27.65 36338.47 Lyondell 77.23 0.90 107.32 71.74 3.64 8.74 34710.55
CmwBkAu 79.39 0.75 96.69 70.15 7.49 14.93 94635.78 France (€) Canon 3285 -97.00 4539 3282 4.55 17.53 37147.93 H&M 281.60 3.90 368.50 274.10 3.26 22.89 54432.92 Avago Tech 129.14 1.10 150.50 99.16 1.12 28.04 35705.86 Marathon Ptl 45.78 0.06 60.38 37.62 2.22 7.63 24399.55
CSL 104.58 1.68 107.18 81.48 1.34 27.32 33796.93 Airbus Grpe 59.00 0.89 68.50 43.74 1.99 16.67 50162.76 CntJpRwy 19765 -640.00 24800 17170 0.57 14.22 34521.09 Investor 295.60 4.70 363.40 266.60 2.95 14.83 26301.48 BakerHu 40.64 -0.87 70.45 40.33 1.59 -68.70 17722.56 Marsh&M 52.03 -0.15 59.99 50.90 2.66 19.98 27141.36
NatAusBk 27.35 -0.07 39.71 27.11 9.80 11.74 50365.24 AirLiquide 96.61 2.65 123.95 93.75 2.48 20.12 35993.05 Denso 5069 -127.00 6548 4945 2.27 16.68 37995.2 Nordea Bk 90.20 1.00 115.50 86.40 6.23 10.84 42664.66 BankAm 15.22 -0.09 18.48 14.60 1.25 12.03 158477.94 MasterCard♦ 90.91 0.33 101.76 74.61 0.67 29.49 100022.23
Telstra 5.37 0.06 6.74 5.06 8.03 15.56 45831.54 AXA 23.69 0.33 26.02 18.21 3.77 12.07 62182.26 EastJpRwy 10355 -520.00 12815 8717 1.13 20.55 34459.6 SEB 82.80 0.45 111.50 81.60 5.56 10.66 20984.87 Baxter 35.48 -0.11 43.44 32.18 4.48 11.21 19408.79 McDonald's 116.71 0.02 120.23 87.50 2.76 26.65 107166.6
Wesfarmers 39.46 -0.29 46.95 36.65 8.41 18.19 31021.56 BNP Parib 48.95 1.05 61.00 43.14 3.00 8.68 66032.89 Fanuc 18800 -325.00 28575 17930 3.84 19.19 32826.43 SvnskaHn 105.60 - 426.00 105.00 3.82 14.22 23085.24 BB & T 34.72 0.04 41.90 34.24 2.79 13.56 27086.82 McGraw Hill 88.25 -0.22 109.13 84.64 1.39-253.43 23853.98
Westpc 30.82 0.26 40.07 29.10 8.13 13.35 71770.63 ChristianDior 148.80 4.15 195.35 141.15 2.15 11.11 29274.64 FastRetail 37630 -510.00 61970 36180 0.85 38.34 33842.48 Swedbank 178.90 1.70 223.90 175.00 6.14 13.10 23652.17 BectonDick 141.61 0.46 157.50 128.87 1.61 44.56 30044.79 McKesson 165.34 1.79 243.61 160.10 0.57 19.60 38046.24
Woolworths 22.90 0.03 34.71 22.42 7.46 13.37 20317.81 Cred Agr 10.17 0.12 14.49 9.82 3.37 22.22 29059.17 Fuji Hvy Ind 4359 -56.00 5223 3669 2.34 10.65 28933.08 TeliaSonera 39.83 -0.14 55.85 38.19 7.29 12.28 20142.73 BerkshHat 193150 89.99 227450 190007 - 14.70 156669.57 Medtronic♦ 75.21 2.21 79.50 55.54 1.69 46.27 105756.97
Belgium (€) Danone 60.27 1.53 67.74 51.73 2.34 42.32 42734.56 Hitachi 613.40 -19.70 922.90 585.70 1.83 12.87 25137.54 Volvo 75.30 0.10 120.50 74.25 3.86 16.61 14272.8 Biogen 277.21 -1.33 480.18 254.00 - 19.09 61790.97 Merck 51.24 -0.01 63.62 45.69 3.33 14.33 143141.15
AnBshInBv 108.90 -0.80 124.20 87.73 2.69 22.35 189604.38 EDF 11.96 -0.55 24.89 11.59 9.83 6.69 24861.83 HondaMtr 3503 1.00 4499 3441 2.35 12.33 53799.93 Switzerland (SFr) BkNYMeln 37.46 0.04 45.45 35.63 1.72 17.09 40942 Metlife 41.64 -0.07 58.23 40.97 3.30 8.51 46288.13
KBC Grp 54.51 0.49 66.00 44.00 3.59 9.20 24672.43 Engie SA 15.12 0.07 20.08 13.80 6.22 43.16 39863.06 JapanTob 4083 -110.00 4848 3101 2.33 19.00 69235.66 ABB 16.62 0.26 22.16 16.21 - 16.18 38334.95 BlackRock 309.75 1.43 382.84 275.00 2.59 16.78 50796.69 Microsoft 52.34 0.04 56.85 39.72 2.25 36.79 418099.36
Esslr Intl 111.80 3.45 125.15 91.89 0.86 41.52 26198.8 KDDI 2948.5 -56.50 8550 2519 1.90 16.52 67269.42 CredSuisse 19.80 0.13 28.94 18.57 3.39 9.54 38619.01 Boeing 130.45 0.24 158.83 115.14 2.52 17.28 87396.01 Mnstr Bvrg 147.23 1.19 160.50 111.92 - 53.80 29845.81
Brazil (R$)
Hermes Intl 304.70 4.70 365.55 277.55 0.91 36.64 34824.08 Keyence 56470-2670.00 70100 50700 0.34 29.71 29110.89 Nestle 71.80 1.55 77.00 64.55 3.01 16.22 228117.3 BrisMySq♦ 63.18 0.20 70.87 51.82 2.22 62.92 105402.33 MondelezInt♦ 41.84 0.16 48.58 33.97 1.41 8.61 66490.77
Ambev 16.91 0.11 20.46 16.41 9.41 21.70 65660.81
LOreal 150.20 1.70 181.30 138.05 1.69 30.45 91013.5 MitsbCp 1861.5 -79.00 2837 1861.5 2.76 10.72 25095.83 Novartis 81.90 1.20 103.20 80.60 3.17 24.62 218470.15 Broadcom 54.56 0.38 58.51 40.21 0.94 25.00 30606.76 Monsanto♦ 92.47 0.19 126.00 81.22 2.07 25.52 40719.67
Bradesco♦ 19.07 0.14 32.40 18.80 4.94 6.88 11892.63
LVMH 139.45 4.25 176.60 128.25 2.16 13.09 76718.73 MitsubEst 2307 -39.50 2975 2306.5 0.61 44.98 27196.11 Richemont 65.55 0.55 91.75 64.00 2.37 21.71 34096.06 CapOne 65.10 0.34 92.10 64.00 2.04 9.65 34636.15 MorganStly 28.25 -0.21 41.04 27.81 1.68 18.31 54698.33
Cielo 33.92 0.57 46.27 30.48 1.96 16.75 15809.9
Nmrcble-SFR 36.74 -0.12 60.01 32.19 - -46.19 17428.76 MitsubishiEle 1119.5 -43.00 1718 1063 2.25 11.20 20380.61 Roche 264.10 3.10 289.40 238.80 2.97 25.93 184890.45 CardinalHlth♦ 80.35 1.08 91.91 74.76 1.72 21.21 26433.63 MylanNV 49.60 0.10 76.69 37.59 - 29.19 24390.65
ItauHldFin 23.15 0.22 32.66 22.93 2.14 5.35 17426.3
Orange 15.82 0.63 16.98 12.21 3.57 44.28 45366.85 MitsuiFud 2817.5 -84.00 3879 2817.5 0.93 24.78 23683.4 Swiss Re 95.20 0.95 99.75 74.95 4.52 38.98 35166.46 Carnival 54.05 0.11 55.77 42.51 1.81 32.15 31895.47 Netflix 116.47 1.50 133.27 45.26 - 328.02 49776.63
Petrobras 6.89 -0.69 16.26 6.87 - -2.67 12668.1
PernodRic 100.15 0.94 117.75 88.00 1.54 32.87 28777.71 MitUFJFin 677.00 -30.70 936.80 604.00 2.48 6.59 81328.65 Swisscom 492.20 3.70 580.50 471.10 4.35 18.53 25406.72 Caterpillar 60.79 -0.69 89.62 60.39 4.48 13.23 35391.08 NextEraE 105.34 -0.24 112.64 93.74 2.73 15.93 48512.85
Vale 9.57 -0.67 27.89 9.39 24.65 -4.15 7606.14
Renault 87.22 2.46 100.25 58.22 2.05 10.02 27923.46 Mizuho Fin 221.80 -7.60 280.40 191.00 3.26 7.36 46778.09 Syngent 369.90 6.30 435.20 280.00 2.90 25.63 34258.98 CBS 46.90 0.12 63.95 38.51 1.21 15.96 20338.49 Nike 60.24 0.69 68.20 45.35 1.14 30.68 81317.78
Canada (C$) Murata Mfg 14755 -815.00 22220 12520 1.27 15.58 28180.63 Celgene 104.96 1.93 140.72 92.98 - 55.46 82975.09 NorfolkS 75.78 -0.19 112.05 72.10 2.93 14.44 22625.62
Safran 59.33 0.72 72.45 53.51 1.90 -19.15 26786.15 UBS 17.57 0.04 22.57 13.58 4.16 11.15 67396.24
BCE♦ 55.27 0.68 60.20 51.56 4.69 17.97 33514 NipponTT 4689 -89.00 5066 3114 1.89 17.71 83343.88 CharlesSch 29.08 0.34 35.72 25.43 0.78 30.88 38284.5 Northrop 188.04 -0.07 193.99 149.05 1.51 19.12 34295.31
Sanofi 74.35 0.70 101.10 73.20 3.60 21.59 105097.49 Zurich Fin 252.80 4.50 334.60 232.60 - 12.96 37887.45
BkMontrl 73.45 -0.16 80.76 64.01 4.48 11.01 33070.17 Nissan Mt 1121 -20.50 1350 963.10 3.12 9.21 42966.82 ChevrnTx 80.21 -0.56 112.93 69.58 5.06 18.36 150958.16 NXP 77.56 0.34 114.00 72.05 - 28.24 19525.85
Sant Gbn 36.76 0.62 44.84 32.36 1.59 26.23 22323.57 Taiwan (NT$)
BkNvaS♦ 53.67 -0.52 67.72 52.60 5.11 9.45 45244.4 Nomura 611.80 -23.10 909.20 607.70 3.51 9.20 19828.24 Cigna 138.70 3.97 170.68 105.23 0.03 17.91 35734.25 Occid Pet♦ 59.49 -1.74 83.74 59.08 4.69 -7.93 45430.83
Schneider 49.01 0.31 75.29 48.20 3.68 18.03 31177.08 Chunghwa Telecom 101.00 1.00 101.00 92.80 4.63 20.50 23436.72
Brookfield 41.49 0.50 48.64 39.56 1.50 10.95 28520.15 Nppn Stl 2147.5 -88.50 3505 2122.5 2.83 9.44 17303.11 Cisco♦ 25.22 -0.05 30.31 23.03 3.02 14.53 128298 Oracle♦ 35.17 0.23 45.33 34.52 1.55 17.71 147756.91
SocGen 39.25 0.38 48.77 32.45 2.99 11.04 34253.19 HonHaiPrc 76.30 0.90 99.70 75.30 4.57 8.26 35692.05
CanadPcR♦ 158.82 -0.48 245.05 154.80 0.89 17.51 17009.18 NTTDCMo 2411.5 -19.00 2873.5 1821.5 2.71 21.56 83537.57 Citigroup 46.67 -0.18 60.95 45.93 0.24 11.09 139029.78 Pepsico 97.57 0.13 103.44 76.48 2.64 30.51 142146.39
Total 37.25 -0.10 50.30 36.85 6.52 104.39 98340.83 MediaTek 206.50 -2.50 505.00 202.00 10.26 10.50 9707.66
CanImp♦ 88.54 -0.19 102.90 83.10 4.93 9.83 24646.57 Panasonic 1117 -39.00 1853.5 1116.5 1.37 84.57 23231.69 CME Grp 87.08 0.13 100.87 83.43 2.15 24.56 29453.35 Perrigo 145.48 1.87 215.73 138.74 0.31 151.90 21297.84
UnibailR 226.40 1.90 262.00 212.30 4.05 13.67 24177.18 TaiwanSem 133.00 - 155.00 112.50 3.26 11.77 103161.43
CanNatRs 24.50 -1.31 42.46 24.48 3.77 61.68 18787.74 Seven & I 4980 -161.00 5998 4117.5 1.37 27.89 37428.3 Coca-Cola 42.11 0.53 43.91 36.56 2.92 28.48 183114.02 Pfizer 31.28 0.21 36.46 28.47 3.34 24.78 192611.92
Vinci 59.04 0.95 62.60 45.43 2.82 17.92 37612.07
CanNatRy 74.16 0.69 88.89 69.90 1.62 17.29 40980.68 ShnEtsuCh 6104 -79.00 8310 5801 1.61 20.22 22362.79 Thailand (THB) Cognizant 59.05 2.93 69.80 53.14 - 24.43 35992.7 Phillips66 76.28 0.10 94.12 57.33 2.64 9.39 40690.82
Vivendi 19.09 0.37 24.83 18.55 10.25-226.56 28260.15
Enbridge 43.91 -0.42 66.14 40.17 4.01-112.14 26571.69 Softbank 5528 -167.00 7827 5370 0.68 12.60 56274.11 PTT Explor 214.00 3.00 382.00 206.00 4.88 -67.67 16824.89 ColgtPlm 62.93 0.12 71.56 50.84 2.23 24.54 56438.82 PhilMorris 88.66 -0.51 90.27 75.27 4.30 20.09 137360.56
GtWesLif 32.73 -0.26 37.70 30.42 3.97 11.83 22781.83 Germany (€)
Sony 2675 -149.50 3970 2351.5 0.79 34.49 28629.05 United Arab Emirates (Dhs) Comcast♦ 54.71 -0.01 64.99 50.01 1.69 18.09 114590.6 PNCFin 88.40 0.12 100.52 81.84 2.12 12.55 45781.57
ImpOil 40.36 -0.82 55.37 39.30 1.19 20.11 23969.38 Allianz 154.30 1.90 170.15 131.05 4.34 11.17 76339.83
SumitomoF 4156 -153.00 5770 3902 3.48 11.65 49826.74 Emirtestele 16.20 0.15 16.50 9.86 3.77 18.49 34871.45 ConocPhil 40.29 -0.83 70.11 39.80 6.90 -51.83 49743.73 PPG Inds 94.49 0.04 118.95 82.93 1.40 23.30 25443.25
Manulife 18.71 -0.23 24.20 18.67 3.51 14.66 25850.91 BASF 64.31 1.06 97.22 62.83 4.26 11.92 63946.48
Takeda Ph 5625 -162.00 6657 5042 2.99 -30.93 37685.61 United Kingdom (p) Corning 17.26 -0.05 25.16 15.42 2.53 11.89 20418.31 Praxair 98.71 0.27 130.38 97.33 2.69 21.21 28117.1
Potash♦ 21.67 -0.29 47.10 21.50 9.12 9.08 12679.04 Bayer 104.20 1.40 146.45 102.30 2.11 23.66 93285.66
TokioMarine 4178 -157.00 5504 3703 2.40 17.82 26834.01 AscBrFd 3049 13.00 3606 2705.75 1.12 42.73 34682.74 Costco 155.62 0.90 169.73 117.03 0.95 30.56 68438.1 Prec Cast 232.28 0.18 232.96 186.17 0.05 25.73 31956.66
RylBkC 70.29 -0.12 81.53 68.05 4.45 10.31 73138.73 BMW 84.85 1.71 123.75 72.05 3.34 10.12 55298.57
Toyota 6755 -109.00 8783 6650 3.11 9.91 191175.33 AstraZen 4324 68.50 4931.68 3746 4.30 48.84 78523.97 CrownCstl 84.15 0.46 89.44 75.78 3.70 57.86 28086.86 Priceline 1149.14 12.86 1476.52 990.69 - 25.31 57208.65
Suncor En 31.57 -0.35 40.93 31.52 2.69 471.52 31975.7 Continental 205.20 3.90 234.25 169.45 1.55 15.77 44431.34
Mexico (Mex$) Aviva 480.70 7.00 578.68 428.40 3.77 12.58 27962.3 CSX 23.71 0.19 37.67 23.18 2.72 12.43 23119.65 ProctGmbl 76.11 -0.56 91.79 65.02 3.26 26.81 207072.31
ThmReut 50.50 0.27 55.92 45.59 3.58 14.82 27172.97 Daimler 69.14 1.01 96.07 62.06 3.47 9.79 80078.55
AmerMvl 11.24 0.08 17.37 10.87 2.23 20.47 26363.29 Barclays 202.35 2.65 289.90 199.40 3.21 0.68 48847.66 CVS 95.66 0.74 113.65 81.37 1.31 22.67 105925.96 Prudntl 72.80 -0.09 92.60 71.74 3.02 10.01 32687.2
TntoDom 51.95 0.56 56.48 47.75 3.91 12.15 67565.26 Deut Bank 21.02 0.31 33.42 20.34 3.49 -7.04 31379.69
FEMSA UBD 153.83 0.85 169.74 123.10 0.72 29.90 30725.44 BG 920.10 2.40 1301.62 785.20 2.07 -17.77 45186.09 Danaher♦ 88.06 -0.39 97.62 81.25 0.54 25.80 60346.22 PublStor 249.99 0.32 253.93 182.08 2.35 44.19 43222.24
TrnCan♦ 44.27 0.34 59.50 40.58 4.65 18.59 21992.43 Deut Tlkm 15.89 0.23 17.63 13.28 3.08 33.52 79246.16
WalMrtMex 43.45 0.72 47.00 28.32 1.25 33.18 42352.16 BP 323.10 -4.95 499.25 252.55 8.33 -11.80 85268.66 Deere♦ 73.60 -0.55 98.23 71.85 3.03 13.71 23309.13 Qualcomm 45.83 -0.24 75.05 45.33 3.73 15.00 68886.8
ValeantPh 122.66 1.10 347.84 92.65 - 51.79 29323.49 DeutsPost 23.98 0.26 31.19 22.93 - 20.51 31443.22
BrAmTob 3698 49.50 3931.5 3231.5 4.00 17.17 99054.27 Delphi 73.78 -2.06 90.57 66.10 1.29 16.38 20664.91 Raytheon♦ 124.07 0.54 129.99 95.32 2.00 19.32 37358.04
E.ON 8.30 0.13 14.85 7.08 1.65 -1.83 17978.02 Netherlands (€)
China (HK$) BSkyB 1103 17.00 1180 884.00 2.93 14.10 27243.64 Delta 47.20 0.46 52.77 34.61 0.81 14.34 37121.55 Regen Pharm 465.08 -15.74 605.93 393.00 - 96.92 47508.25
Fresenius Med 77.04 1.08 83.17 61.62 0.97 25.55 25947.25 Altice 14.33 0.17 47.73 9.98 - 262.26 12740
AgricBkCh 2.86 -0.02 4.55 2.84 7.48 4.49 11326.95 BT♦ 473.40 10.40 502.60 391.50 2.41 17.84 56907.58 DiscFinServ 50.65 0.16 64.10 49.88 1.95 11.01 21652.05 ReynoldsAm 48.28 -0.17 49.56 32.50 2.68 19.18 69000.59
Fresenius SE 61.08 1.66 70.00 43.82 0.70 27.21 36034.43 ASML Hld 75.99 0.30 104.85 70.25 0.90 24.10 35648.95
Bk China 3.11 -0.01 5.68 3.09 7.19 4.79 33507.45 Compass 1146 13.00 1223.36 963.00 2.40 21.95 27083.18 Disney 101.16 1.24 122.08 90.00 1.70 21.74 167227.21 Salesforce 74.12 0.94 82.90 54.95 - -593.96 49215.68
HenkelKgaA 82.73 1.73 99.44 75.76 1.53 20.72 23268.28 Heineken 76.98 1.00 85.90 57.58 1.34 23.24 48003.34
BkofComm 4.91 - 8.61 4.88 6.47 4.71 22148.85 Diageo 1837 31.50 2055 1592.5 2.91 19.42 66393.08 DominRes 68.91 -0.50 79.89 64.54 3.50 24.06 41024.44 Schlmbrg 63.97 -0.86 95.13 63.64 2.82 25.48 80672.8
Linde 126.10 2.10 195.55 120.20 2.44 21.01 25355.58 ING 11.58 0.09 16.00 10.20 - 26.15 48513.25
BOE Tech 1.90 0.02 4.78 1.17 1.93 28.11 48.70 GlaxoSmh♦ 1363.5 16.00 1645 1227.5 5.87 6.75 95351 DowChem♦ 44.95 -0.46 57.10 35.11 3.55 12.77 52050.89 Shrwin-Will 246.69 4.72 294.35 218.27 0.98 24.92 22966.97
MuenchRkv 175.55 2.50 206.50 156.00 4.32 9.67 31708.84 Unilever 37.99 0.82 42.84 32.62 2.86 23.85 70514.16
Ch Coms Cons 6.70 -0.01 17.00 6.59 2.97 6.74 3822 Glencore 72.00 -1.43 318.46 66.67 15.90-167.44 14891.79 DukeEner 71.04 -0.79 89.97 65.50 4.29 21.76 48901.68 SimonProp 185.23 -1.48 208.14 170.99 2.94 36.52 57313.51
SAP 74.25 2.65 75.75 53.91 1.45 29.41 98751.15 Norway (Kr)
Ch Evrbrght 3.40 -0.02 5.65 3.22 6.44 4.66 3008.92 HSBC 505.10 7.30 674.57 478.35 6.64 9.96 142842.34 DuPont 58.30 -0.88 76.61 47.11 2.94 17.65 51094.53 SouthCpr 22.32 -1.07 33.31 22.24 1.78 18.47 17529.6
Siemens 83.45 0.48 106.35 77.91 3.72 12.83 79592.35 DNB 99.95 -0.35 143.00 97.50 3.93 7.12 18284.67
Ch Rail Cons 8.11 -0.24 17.70 7.80 2.18 7.37 2169.54 ImpTob 3589.5 78.00 3665 2785 3.68 20.29 49445.99 Eaton 49.18 0.03 73.82 48.58 4.13 12.00 22760.5 Starbucks 59.19 1.37 64.00 39.50 1.03 34.25 87885.31
Volkswgn 129.35 2.60 254.50 95.00 3.63 10.51 41322.8 Statoil 105.10 -1.70 161.70 102.80 6.78 -9.07 37639.68
Ch Rail Gp 4.99 -0.09 12.30 4.96 1.84 8.72 2705.02 LlydsBkg 69.30 0.37 89.35 68.57 2.16 41.32 71149.55 eBay 26.08 -0.02 29.83 22.11 - 11.11 31313.05 StateSt♦ 58.48 0.04 81.26 57.46 2.08 14.43 23595.87
ChConstBk 4.89 -0.03 7.98 4.88 7.24 4.59 151472.53 Hong Kong (HK$) Telenor 142.00 -2.90 186.10 138.20 2.65 35.07 23946.29 Ecolab♦ 105.14 0.52 122.48 99.51 1.19 29.71 31048.21 Stryker♦ 88.17 0.64 105.34 86.68 1.48 30.18 33109.8
Natl Grid♦ 949.00 8.00 968.57 806.40 4.52 16.54 51048.53
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36586.73 AIA 42.00 -0.30 58.20 38.85 0.98 20.53 65197.95 Qatar (QR) EMC♦ 24.61 0.19 29.60 22.66 1.77 21.75 47714.79 Sychrony Fin 28.64 -0.07 36.40 27.92 - 11.48 23876.6
Prudential 1371 7.50 1761.5 1045.99 2.69 13.96 50658.87
ChinaCitic 4.58 -0.01 7.40 4.36 - 4.49 8781.96 BOC Hold 22.30 0.40 33.70 21.85 4.59 9.96 30377.4 QatarNtBk 157.50 -5.00 211.00 157.50 4.52 10.40 30269.69 Emerson 44.00 0.20 62.75 42.21 4.05 11.58 28800.51 Target 73.00 0.58 85.81 68.15 2.70 17.56 44971.77
RBS 283.40 3.00 414.00 279.90 - -12.71 47335.34
ChinaLife 20.95 -0.45 41.00 20.85 2.21 13.21 20085.52 Ch OSLnd&Inv 22.05 -0.55 34.05 20.70 2.28 6.64 28013.52 EOG Res 62.27 -1.40 101.36 61.73 1.02 -9.43 34231.91 TE Connect 58.15 0.23 73.73 54.32 2.02 20.37 22463.69
Russia (RUB) ReckittB 6076 99.00 6450 5215 2.29 25.82 61808.83
ChinaMBank 15.88 0.28 26.85 15.30 4.96 5.91 9393.03 ChngKng 46.40 -0.10 77.55 45.60 - 10.68 23074.16 EquityResTP 79.75 -0.03 82.53 61.90 2.57 36.46 29049.92 Telsa Mtrs 209.36 1.51 286.65 181.40 - -41.40 27415.97
Gzprm neft 133.54 2.16 166.94 130.10 6.77 6.37 41307.44 RELX 1176 16.00 1232 988.50 2.21 27.01 34693.73
ChinaMob 79.65 -0.95 118.00 79.00 3.34 13.10 210124.73 Citic Ltd 12.02 -0.12 16.40 11.64 1.64 6.20 45051.51 Exelon 27.80 -0.26 38.25 25.09 4.23 13.02 25563.89 TexasInstr 51.09 -0.12 59.99 43.49 2.53 19.06 51826.31
Lukoil 2223.5 -34.40 3297.7 2126 8.66 17.79 24711.43 RioTinto 1652 -45.00 3280 1637.5 8.26 16.43 32634.95
ChinaPcIns 27.25 0.15 47.10 24.80 2.10 13.93 9743.91 Citic Secs 15.14 0.04 40.50 12.82 2.19 7.07 5692.69 ExpScripts 85.56 -0.41 94.61 68.06 - 28.00 57862.17 TheTrvelers 107.05 0.26 116.48 95.21 2.06 10.03 32566.62
MmcNrlskNckl 8553 -47.00 12247 8500 17.38 9.58 17684.95 RollsRoyce 556.00 4.00 1061 504.50 4.15 -40.89 14688.87
ChMinsheng 6.93 0.03 11.88 6.61 3.14 4.67 6190.78 CK Hutchison 97.00 -0.95 174.90 96.95 3.45 4.18 48236.96 ExxonMb 73.64 -0.05 93.45 66.55 3.66 16.39 306558.79 ThrmoFshr♦ 136.62 1.74 143.65 117.10 0.42 29.29 54524.73
Novatek 567.00 16.50 646.30 410.80 11.44 46.70 22494.84 RylDShlA 1351 -3.00 2216.5 1338 9.30 81.66 77470.81
ChMrchSecs RMB 16.92 0.13 40.00 13.85 2.42 9.90 12359.29 CNOOC 7.07 -0.24 13.78 7.05 7.35 6.69 40669.81 Facebook 99.17 1.66 110.65 72.00 - 105.55 224098.07 TimeWrnr 71.03 1.42 91.34 62.94 1.83 17.20 57930.75
Rosneft 239.90 -1.15 294.20 201.05 3.79 5.85 33221.26 SABMill 4058.5 8.50 4090 2773 1.83 33.62 94475.08
Chna Utd Coms RMB 5.03 - 10.74 4.27 1.31 34.84 16214.55 HangSeng 133.60 -1.50 162.10 127.80 3.83 10.45 32909.08 Fedex 133.49 0.52 185.19 130.01 0.64 35.68 36791.88 TimeWrnrC♦ 183.26 -0.04 194.22 134.21 1.94 28.84 51898.78
Sberbank 91.71 0.68 110.70 57.20 0.54 8.93 25867.86 Shire 4114 189.00 5870 3855 0.36 12.14 35017.88
ChShenEgy 10.88 -0.08 23.30 10.88 7.88 7.88 4764.13 HK Exc&Clr 179.60 -2.50 311.40 173.60 2.03 33.63 27965.54 FordMtr 12.68 -0.09 16.74 10.44 4.30 11.21 49408.62 TJX Cos 68.41 0.61 76.93 63.53 1.05 22.41 45802.49
Surgutneftegas 34.10 0.90 39.80 25.10 - 1.17 15918.07 StandCh 513.90 7.30 1166 475.55 9.98 12.01 24031.46
ChShpbldng RMB 8.24 0.24 20.19 7.89 0.45-513.03 22503.71 MTR 36.10 -0.15 40.00 32.65 2.66 14.49 27247.73 Franklin♦ 33.52 0.02 54.85 32.96 1.70 10.74 20133.21 T-MobileUS 39.63 -0.05 43.43 28.54 - 69.17 32339.56
Saudi Arabia (SR) Tesco 155.20 9.75 252.52 137.00 0.75 -2.23 18154.38
ChStConEng RMB 5.74 0.07 12.52 4.88 2.94 7.49 26100.67 SandsCh 22.30 - 40.55 21.60 8.16 13.28 23184.47 GenDyn 131.85 0.56 153.76 129.87 2.38 15.66 41681.5 UnionPac 75.14 0.33 124.52 72.42 2.71 13.68 64178.62
AlRajhiBnk 49.86 0.01 69.00 46.60 3.56 13.31 21586.14 Vodafone♦ 221.30 0.50 258.00 201.25 5.07 -41.44 84435.79
ChUncHK 8.34 -0.24 16.00 8.30 2.82 18.52 25732.1 SHK Props 89.80 -0.25 137.60 89.60 2.44 8.94 33476.48 GenElectric♦ 28.51 -0.07 31.49 19.37 3.06 58.27 288215.41 UPS B 91.98 0.32 114.40 90.71 2.95 22.26 64031.2
Natnlcombnk 43.22 -2.66 72.75 43.10 1.76 10.32 22967.69 WPP 1483 30.00 1616 1273 2.58 15.33 27588.09
CNNC Intl RMB 8.25 0.17 14.38 4.07 - 23.65 4881.88 Tencent 136.10 -1.90 171.00 121.60 0.25 39.70 164901.38 GenMills♦ 56.05 0.14 59.87 47.43 2.95 24.26 33257 USBancorp♦ 39.94 0.08 46.26 38.81 2.37 13.34 69862.13
SaudiBasic 67.69 -0.02 110.50 66.00 7.21 9.06 54102.24 United States of America ($)
CSR 7.64 -0.22 20.70 7.60 - 17.76 4302.66 India (Rs) GenMotors 29.97 -0.28 39.00 24.62 4.18 11.59 46638.62 UtdHlthcre 111.87 2.29 126.21 95.00 1.48 18.71 106624.24
SaudiTelec 62.50 -2.18 73.25 52.75 6.08 13.46 33302.7 21stC Fox A 26.31 0.43 36.16 22.81 1.08 7.22 30802.48
Daqin RMB 7.65 0.01 15.15 7.62 6.16 8.21 17296.17 Bhartiartl 315.40 - 452.45 304.15 0.68 22.62 18852.78 GileadSci 96.55 0.05 123.37 86.00 0.84 9.35 139145.95 UtdTech 90.01 -0.49 124.45 85.50 2.65 14.90 79843.86
Singapore (S$) 3M 140.01 -0.45 170.50 134.00 2.66 19.10 86205.97
Gree Elec Apl 0.21 0.00 0.45 0.13 - -2.47 370.22 HDFC Bk 1046.95 - 1128 944.20 0.74 24.93 39531.06 GoldmSchs 164.87 -0.86 218.77 163.34 1.44 11.42 70325.06 ValeroEngy 70.58 1.51 73.88 43.45 1.98 8.27 33984.51
DBS 15.37 -0.01 21.50 15.27 3.75 12.13 26729.51 AbbottLb 41.36 0.63 51.74 39.00 2.16 25.91 61697.53
GuosenSec RMB 15.85 0.27 34.94 13.76 1.24 9.79 5291.1 Hind Unilevr 819.70 - 981.00 769.00 1.70 39.31 26523 Halliburton 31.08 -0.47 50.20 30.83 2.20 106.46 26598.68 Verizon♦ 44.87 -0.23 50.86 38.06 4.68 18.97 182549.99
JardnMt US$ 48.76 0.61 67.88 45.00 2.72 12.42 34246.81 Abbvie 54.12 0.24 71.60 45.45 3.38 33.00 88472.5
HaitongSecs 10.98 -0.10 27.90 10.00 2.68 7.08 4823.45 HsngDevFin 1151.85 - 1402.3 1093.2 1.26 20.78 27191.99 HCA Hold 67.48 -0.35 95.49 43.91 - 14.88 27509.42 VertexPharm 102.63 -1.32 143.45 97.45 - -39.44 25217.97
JardnStr US$ 25.96 0.21 36.93 25.24 0.95 10.07 28894.75 Accenture 99.93 0.70 109.86 83.47 2.03 23.27 80565.9
Hngzh HikVDT RMB 28.93 -0.32 56.48 25.90 1.36 20.98 13884.07 ICICI Bk 236.75 - 393.40 235.80 2.03 11.41 20576.33 Hew-Pack 10.66 0.01 18.52 10.50 5.86 4.62 19101.1 VF Cp 57.45 1.00 77.83 55.84 2.11 25.24 24491.46
OCBC 8.23 -0.06 10.92 8.20 4.20 9.53 23545.2 Ace♦ 110.86 0.57 119.86 96.00 2.26 14.28 35938.76
Hunng Pwr 6.40 -0.14 11.90 6.24 6.95 6.33 3875.89 Infosys 1049.95 - 2336 932.65 3.41 19.66 35884.66 HiltonWwde 19.32 0.08 31.60 19.00 0.34 26.90 19072.63 Viacom 41.53 0.56 74.17 36.32 3.33 9.26 14417.83
SingTel♦ 3.53 0.01 4.57 3.40 4.76 15.14 39132.87 Adobe 89.68 0.30 96.42 68.98 - 98.40 44732.33
IM Baotou Stl RMB 3.23 -0.08 7.50 3.12 - -42.10 7732.8 ITC 315.15 - 409.95 294.00 1.97 25.39 37873.06 HomeDep 127.02 1.24 135.47 92.17 1.64 25.59 161046.53 Visa Inc 74.50 0.58 81.01 60.00 0.61 30.50 145009.96
UOB 18.06 -0.21 25.05 18.04 4.52 9.53 20183.31 AEP 58.07 -0.70 65.38 52.29 3.46 16.99 28501.77
In&CmBkCh 4.16 -0.06 7.10 4.13 7.23 4.66 46519.87 L&T 1179.15 - 1893.8 1145.05 1.25 22.22 16419.32 Honywell 98.24 -0.18 107.41 87.00 2.00 18.14 75709.64 Walgreen 81.67 0.65 97.30 73.00 1.63 20.81 88101.26
Aetna♦ 108.97 3.90 134.40 88.70 0.85 17.62 37997.84
IndstrlBk RMB 15.79 -0.01 21.42 11.90 3.54 6.14 45751.14 OilNatGas 221.35 - 373.80 211.25 4.32 9.99 28317.9 South Africa (R) HumanaInc♦ 170.44 1.43 219.79 143.44 0.63 20.67 25263.29 WalMartSto 63.99 -0.23 90.97 56.30 2.84 14.74 204889.15
Aflac 57.30 0.22 66.53 51.41 2.58 10.57 24452.13
Kweichow RMB 196.79 -3.07 290.00 166.20 2.18 15.67 37595.19 RelianceIn 1045.45 - 1067.85 796.45 0.92 12.97 50638.26 Firstrand 39.51 1.51 58.47 34.08 6.00 8.01 13377.23 IBM 131.82 -1.41 176.30 131.32 3.45 9.53 127879.92 WellsFargo 50.71 0.62 58.77 47.75 2.71 12.93 260312.65
AirProd♦ 120.15 0.66 158.20 118.64 2.53 21.54 25891.12
Midea 1.90 -0.04 2.68 1.65 4.81 13.07 52.64 SBI NewA 199.40 - 336.00 198.65 1.70 8.53 23146.12 MTN Grp 122.33 -1.87 250.00 120.23 12.69 5.89 13626.38 IllinoisTool 83.18 -0.01 100.14 78.79 2.29 17.26 30235.25 Williams Cos 16.68 -2.01 61.38 16.49 13.53 39.27 12506.08
Alexion 163.79 2.14 208.88 142.02 - 156.40 36905.87
New Ch Life Ins 28.10 -0.45 56.55 27.05 0.87 8.16 3743.94 SunPhrmInds 788.15 - 1200.8 704.00 - 68.73 28362.87 Naspers N 1938 17.18 2270 1521.98 0.28 53.58 51220.1 Illumina 165.65 -0.06 242.37 130.00 - 50.98 24251.16 Yahoo 30.52 0.35 50.32 27.20 - 125.98 28821.72
Allegran 299.60 0.23 340.34 237.50 - -42.86 118077.74
PetroChina 4.39 -0.06 11.04 4.35 4.21 16.09 11933.96 Tata Cons 2327.05 - 2812.1 2301.65 1.64 22.71 68565 South Korea (KRW) Intcntl Exch 253.06 0.42 266.74 202.24 0.81 25.23 27777.05 Yum!Brnds 69.18 1.16 95.90 66.35 2.25 34.86 29833.3
Allstate 58.10 0.08 72.87 54.12 1.93 10.67 22502.49
PingAnIns 35.65 -0.70 62.90 35.00 2.23 9.88 34208.29 Indonesia (Rp) HyundMobis 241500 500.00 271500 185500 1.20 12.59 19424.53 Intel 32.38 0.32 37.49 24.87 2.77 14.61 152801.22 Venezuela ()
Alphabet 741.50 8.43 798.69 490.91 - 36.07 216019.55
PngAnBnk RMB 10.81 0.05 17.50 9.30 1.58 7.00 19405.63 Bk Cent Asia 13100 350.00 15600 11000 1.02 20.30 23219.35 KoreaElePwr 50500 -200.00 54000 38750 0.96 2.74 26787.18 Intuit♦ 94.39 0.39 109.21 79.63 1.03 61.90 24919.37 Bco de Vnzla 115.00 15.00 143.95 27.00 - - 31068.18
Altria 59.30 -0.16 61.74 47.31 3.40 23.52 116268.29
Pwr Cons Corp RMB 7.02 0.16 20.00 6.31 1.40 14.08 3523.08 SK Hynix 27800 -850.00 51700 27700 1.05 4.53 16229.61 John&John 97.79 0.22 106.33 81.79 2.81 19.78 270579.42 Bco Provncl 4200 - 4400 850.00 0.79 59.29 33546.33
Israel (ILS) Amazon 622.46 4.72 696.44 285.25 - 946.81 291785.04
SaicMtr RMB 18.98 -0.02 29.18 14.00 6.72 7.40 31824.97 SmsungEl 1146000-6000.00 1510000 1033000 1.73 8.67 122447.68 JohnsonCn 35.54 0.17 54.52 34.98 2.78 17.19 23026.67 Mrcntl Srvcs 5000 - 5900 1310 0.15 38.53 22000.5
TevaPha 249.30 -2.30 275.90 214.70 1.99 31.96 64571.48 AmerAir 41.99 0.91 56.20 34.10 0.90 6.36 26467.37
ShenwanHong 0.15 0.01 0.41 0.15 - -2.46 49.54 Spain (€) JPMrgnCh♦ 58.47 -0.36 70.61 50.07 2.73 10.50 215235.66
Italy (€) AmerExpr♦ 63.91 -0.14 91.14 63.08 1.63 11.99 62903.16
ShgPdgBk RMB 17.45 0.40 20.12 11.91 4.26 6.72 49502.39 Kimb-Clark 125.67 -0.04 130.05 103.04 2.63 79.77 45617.51 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.72 -0.03 4.50 3.36 3.68 63.40 37869.95 BBVA 6.21 -0.06 9.77 6.13 2.52 16.13 42782.24 AmerIntGrp 57.69 - 64.93 48.68 1.08 17.64 71363.25
Sinopec Corp 4.20 -0.04 7.79 4.12 5.56 20.57 13806.34 KinderM 13.34 -0.82 44.71 13.30 13.23 26.21 29768.41 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 12.68 0.03 17.66 12.32 7.40 -17.01 49887.92 BcoSantdr 4.13 0.05 7.17 4.01 11.74 8.12 64554.37 AmerTower♦ 94.09 -0.40 104.12 86.83 1.71 74.05 39851.6
Sinopec Oil RMB 6.73 -0.16 14.23 5.08 - -197.87 460.58 Kraft Heinz 72.78 0.51 81.20 61.42 0.72 -50.31 88315.31 based on intraday trading over a rolling 52 week period.
Generali 15.63 0.22 19.21 15.16 3.75 12.92 26343.98 CaixaBnk 2.91 -0.03 4.53 2.89 2.69 25.12 18360.36 Amgen 149.09 1.40 181.81 130.09 1.90 18.78 112462.74
Denmark (kr) Iberdrola 6.25 -0.16 6.71 5.35 1.21 32.80 42904.41 Kroger 41.04 -0.24 42.75 27.32 0.87 21.72 40002.62 ♦ ex-dividend
IntSPaolo 2.92 0.06 3.65 2.26 2.35 17.16 50066.62 Anadarko 36.96 -0.79 95.94 36.16 2.77 -3.39 18780.96
DanskeBk 183.30 2.00 218.00 155.50 2.93 27.70 26826.48 Inditex 30.11 0.67 35.38 23.39 1.27 34.84 101577.14 L Brands 94.70 1.68 101.11 75.11 1.81 25.60 27409.15 ■ ex-capital redistribution
Luxottica 58.75 2.45 67.80 46.76 1.20 36.48 30758.77 Anthem 134.83 6.47 173.59 126.25 1.63 13.61 35188.42
MollerMrsk 8015 -65.00 16450 7870 3.55 7.51 12377.6 Repsol 8.61 -0.13 18.75 8.58 10.86 25.79 13054.57 LasVegasSd 38.73 -0.26 61.59 36.53 6.00 14.68 30885.28 # price at time of suspension
Unicred 4.63 -0.05 6.61 4.43 2.53 14.83 29936.02 Aon Cp 86.24 -0.17 107.08 85.56 1.21 20.77 23622.59
NovoB 380.80 6.40 415.00 271.10 1.28 30.46 113966.71 Telefonica 9.49 0.02 14.31 9.36 4.12 16.32 49959.95 LibertyGbl 35.20 -0.31 58.66 35.11 - -23.94 8897.02
Apple 99.67 1.14 134.54 92.00 1.88 11.40 552599.61
Lilly (E) 80.10 -0.17 92.85 68.31 2.36 38.20 88756.93

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
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 MTN Grp 122.33 124.20 -1.87 -1.51 -13593.67 -99.1 -2.53 Jan 12 date Coupon S* M* F* price yield yield yield US Jan 12 date Coupon S* M* F* price yield yield yield US
Tesco 155.20 145.45 9.75 6.70 12.95 9.1 5.75 Firstrand 39.51 38.00 1.51 3.97 -4120.49 -99.1 11.08 High Yield US$ US$
TimeWrnr 71.03 69.61 1.42 2.04 5.51 8.4 8.40 Naspers N 1938.00 1920.82 17.18 0.89 -201560.00 -99.0 -2.50 CSC Holdings, LLC (Cablevision-U.S.) 02/18 7.88 BB Ba2 BB 97.46 9.45 0.00 3.68 8.48 Halliburton Company 02/27 6.75 A A2 A- 117.69 4.74 0.00 0.17 2.55
Netflix 116.47 114.97 1.50 1.30 8.81 8.2 -2.09 Williams Cos 16.68 18.69 -2.01 -10.75 -9.65 -36.7 -36.66 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 99.73 6.90 0.00 -0.11 4.71
RelianceIn 1051.60 1045.45 6.15 0.59 56.30 5.7 9.71 Anadarko 36.96 37.75 -0.79 -2.09 -11.56 -23.8 -25.23 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - SouthTrust Bank 12/27 6.57 A Aa3 A+ 119.94 4.44 0.00 -0.02 2.26
Nokia 6.89 6.89 0.00 0.00 0.31 4.7 3.61 Vale 10.24 10.24 0.00 0.00 -2.28 -18.2 -22.19 E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 118.71 4.52 0.00 0.31 -
ReynoldsAm 48.28 48.45 -0.17 -0.35 1.71 3.7 8.30 VertexPharm 102.63 103.95 -1.32 -1.27 -20.82 -16.9 -12.86 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 111.85 4.75 0.00 -0.29 -
AmerAir 41.99 41.08 0.91 2.22 1.47 3.6 -0.26 Murata Mfg 14755.00 15570.00 -815.00 -5.23 -2815.00 -16.0 -23.53 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 119.42 4.79 0.00 0.04 -
Orange 15.82 15.19 0.63 4.15 0.51 3.3 6.07 CanNatRs 25.81 25.81 0.00 0.00 -4.88 -15.9 -15.38 Brazil 01/18 8.00 BB+ Baa3 BB+ 103.14 6.29 0.00 0.00 5.32
Russia 07/18 11.00 BB+ Ba1 BBB- 117.62 3.67 0.00 0.11 2.70 Euro
BT 473.40 463.00 10.40 2.25 13.50 2.9 2.79 CSR 7.64 7.86 -0.22 -2.80 -1.44 -15.9 -19.49 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 96.60 2.99 0.00 -0.26 0.80
Chunghwa Telecom 101.00 100.00 1.00 1.00 2.80 2.9 3.06 Keyence 56470.00 59140.00 -2670.00 -4.51 -10610.00 -15.8 -13.55 Peru 03/19 7.13 BBB+ A3 BBB+ 113.90 2.61 0.00 0.00 1.64
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 104.74 2.77 0.00 0.27 0.58
Natl Grid 949.00 941.00 8.00 0.85 23.10 2.5 4.94 HaitongSecs 10.98 11.08 -0.10 -0.90 -2.06 -15.8 -12.58 TeliaSonera 09/27 3.00 A- A3 A- 108.44 2.17 0.04 -0.02 -0.02
Vodafone 221.30 220.80 0.50 0.23 5.30 2.5 6.59 MediaTek 206.50 209.00 -2.50 -1.20 -38.50 -15.7 -19.81 Brazil 01/21 7.88 BB+ Baa3 BB+ 94.27 6.22 0.00 0.00 4.60
Colombia 07/21 4.38 BBB Baa2 BBB 99.88 4.45 0.00 -0.06 2.83 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 108.88 2.33 0.00 -0.02 -
Viacom 41.53 40.97 0.56 1.37 0.97 2.4 0.02 BHPBilltn 15.01 15.55 -0.54 -3.47 -2.79 -15.7 -12.73
Poland 03/22 5.00 A- A2 A- 110.88 3.08 0.00 -0.01 1.46 Yen
Perrigo 145.48 143.61 1.87 1.30 2.80 2.0 -1.15 Glencore 72.00 73.43 -1.43 -1.95 -13.27 -15.6 -14.51
Turkey 09/22 6.25 - Baa3 BBB- 107.31 5.01 0.00 0.15 3.40 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Vinci 59.04 58.09 0.95 1.64 0.99 1.7 2.45 McKesson 165.34 163.55 1.79 1.09 -30.16 -15.4 -13.11
WalMartSto 63.99 64.22 -0.23 -0.36 1.07 1.7 7.87 LibertyGbl 35.20 35.51 -0.31 -0.87 -6.36 -15.3 -15.00 Turkey 04/26 4.25 - Baa3 BBB- 92.19 5.31 0.00 0.04 3.12 £ Sterling
CBS 46.90 46.78 0.12 0.25 0.78 1.7 0.28 ConocPhil 40.29 41.12 -0.83 -2.02 -7.11 -15.0 -16.37 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
ImpTob 3589.50 3511.50 78.00 2.22 57.00 1.6 5.30 Ch OSLnd&Inv 22.05 22.60 -0.55 -2.43 -3.75 -14.5 -14.37 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
Cognizant 59.05 56.12 2.93 5.22 0.92 1.6 1.39 KinderM 13.34 14.16 -0.82 -5.79 -2.24 -14.4 -19.81 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.53 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+ - BBB+ 109.89 2.90 0.00 -0.06 1.29 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 115.12 3.90 0.00 -0.12 1.71
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
Jan 12 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 12 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 23.24 -1.06 24.30 53.29 10.88 Jan 12 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 22.24 -0.48 22.72 56.32 7.04 Tr 2pc '16 100.04 0.36 -30.77 -7.69 -14.29 0.00 101.66 100.04 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.29 0.04 -1.15 -1.15 -0.86 -3.76 VXN 24.96 -1.45 26.41 46.72 11.15 Tr 1.75pc '17 101.41 0.37 0.00 -5.13 -15.91 -17.78 102.68 101.35 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 298.83 0.26 1.24 1.24 -0.05 0.57 VDAX 26.64 -1.28 27.92 29.94 - Tr 5pc '18 109.66 0.47 -2.08 -17.54 -20.34 -29.85 113.51 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.49 0.01 0.41 0.41 0.41 0.41 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.72 0.73 -2.67 -14.12 -13.10 -17.98 115.07 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.61 0.09 0.15 0.15 -0.18 -0.68 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.45 0.94 -2.08 -12.96 -11.32 -12.15 119.04 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.44 0.21 0.50 0.50 -0.03 1.84 Tr 1.5pc '21 101.33 1.23 -0.81 -9.56 -8.21 3.36 142.92 99.91 0.12
Gilts( £) 291.59 0.29 1.65 1.65 0.02 0.80 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.17 1.26 -1.56 -9.35 -8.03 -2.33 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 239.69 0.25 0.57 0.57 -1.44 -3.55 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 128.55 1.63 -0.61 -6.86 -5.78 3.82 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.75 0.25 1.30 1.30 0.09 0.63 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 124.98 1.90 -0.52 -5.47 -4.04 6.15 131.90 119.79 0.31
Jan 12 (Libor: Jan 11) night Day Week Month month month month year Overall ($) 226.35 0.09 0.59 0.59 0.59 0.59 Australia 10/18 3.25 103.33 2.01 0.00 0.01 -0.14 -0.13 Tr 4.25pc '32 127.66 2.23 -0.45 -3.46 -1.76 8.25 136.85 121.93 0.35
US$ Libor 0.36610 0.000 0.092 0.000 0.42400 0.62210 0.85130 1.15360 Overall( £) 291.03 0.28 1.54 1.54 0.04 0.75 04/26 4.25 112.85 2.80 0.01 0.01 -0.14 0.11 Tr 4.25pc '36 129.30 2.41 -0.41 -3.21 -1.23 9.55 140.37 123.52 0.28
Euro Libor -0.28429 0.000 -0.003 -0.006 -0.21929 -0.14071 -0.05571 0.04786 Overall(€) 221.64 0.17 0.43 0.43 -0.03 1.18 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 138.90 2.50 -0.79 -2.72 -0.40 9.65 153.16 132.20 0.26
£ Libor 0.47750 0.000 0.032 0.001 0.51288 0.58938 0.75150 1.04400 Treasuries ($) 218.39 0.14 0.73 0.73 0.73 0.73 10/25 1.20 102.84 0.90 0.04 0.05 -0.02 0.00 Tr 3.75pc '52 131.93 2.43 -0.82 -2.41 0.41 4.74 145.21 121.95 0.22
Swiss Fr Libor 0.000 -0.79000 -0.75100 -0.68300 -0.60360 FTSE Belgium 06/18 0.75 101.88 -0.04 0.00 0.00 0.00 0.00 Tr 4pc '60 144.07 2.38 -1.24 -2.86 0.00 3.48 159.23 131.72 0.22
Yen Libor 0.000 0.04857 0.08229 0.11371 0.22400 Sterling Corporate (£) 111.00 0.13 - - -0.19 -4.35 06/25 0.80 98.81 0.93 0.04 0.04 -0.04 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.21900 -0.14300 -0.05200 0.05000 Euro Corporate (€) 105.22 -0.10 - - -0.80 -4.65 Canada 11/17 0.25 99.71 0.41 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.79500 Euro Emerging Mkts (€) 800.62 9.99 - - -4.95 -18.17 06/26 1.50 100.45 1.45 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.38000
-0.22500
0.57000
-0.16500
0.79000
-0.05500
Eurozone Govt Bond 113.40 -0.06 - - -0.71 -1.69 Denmark 11/18 0.25 101.30 -0.21 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 1.75 107.94 0.90 0.04 0.05 0.01 0.16
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 99.46 1.24 0.00 -0.07 -0.07 0.00
Fixed Coupon Jan 12 chg % Return 1 month 1 year Yield
Jan 12 term notice month month month year Markit iTraxx 09/25 0.88 99.86 0.89 0.04 0.05 -0.03 0.00
1 Up to 5 Years 98.88 0.04 2377.31 0.28 1.21 0.82
Euro -0.35 -0.25 -0.35 -0.25 -0.30 -0.15 -0.24 -0.09 -0.15 0.00 -0.05 0.10 Crossover 5Y 352.89 2.56 24.19 13.67 389.82 280.05 France 05/19 1.00 103.78 -0.12 0.00 0.00 0.00 0.00
2 5 - 10 Years 180.99 0.11 3275.28 0.61 1.56 1.48
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.72 0.87 1.01 1.16 Europe 5Y 86.37 0.68 6.62 5.24 95.40 68.39 11/20 0.25 100.76 0.09 0.04 0.06 -0.02 0.00
3 10 - 15 Years 206.67 0.14 3849.36 0.63 0.90 1.99
Swiss Franc - - - - - - - - - - - - Japan 5Y 83.17 2.42 6.45 8.86 83.29 65.01 11/25 1.00 100.38 0.96 0.04 0.05 -0.03 0.00
4 5 - 15 Years 187.03 0.12 3413.71 0.61 1.34 1.68
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 80.93 0.95 3.75 1.95 99.56 65.28 05/45 3.25 127.63 2.00 0.04 0.03 0.04 0.28
5 Over 15 Years 299.99 0.38 4355.30 -0.08 -0.75 2.43
US Dollar 0.32 0.42 0.32 0.42 0.40 0.50 0.60 0.70 0.80 0.90 1.10 1.20 Germany 04/19 0.50 102.57 -0.29 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.52 0.19 3253.28 0.24 0.36 2.15
Japanese Yen -0.15 -0.05 -0.10 0.00 -0.20 0.00 -0.15 0.15 -0.15 0.15 -0.10 0.20 10/20 0.25 101.60 -0.09 0.00 0.00 0.00 0.00
Emerging Markets 5Y 380.47 1.45 17.89 15.34 380.47 299.17 08/25 1.00 103.90 0.58 0.04 0.04 -0.06 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 520.75 -1.55 36.79 6.40 522.53 416.39 08/46 2.50 126.63 1.42 0.03 0.02 0.00 0.21
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jan 12 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 98.45 -0.28 7.99 5.66 98.73 75.52 Greece 07/17 3.38 93.15 8.38 -0.10 -0.21 -0.61 -3.22
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 309.19 0.01 0.24 -1.95 2362.21 0.24 -0.35
02/26 3.00 68.21 8.35 0.01 0.00 -0.26 -1.26 2 Over 5 years 572.06 0.64 0.31 -1.50 4224.51 0.37 -0.77
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.19 -0.27 0.00 0.00 0.00 0.00 3 5-15 years 428.81 0.00 0.23 -3.09 3264.50 0.41 -1.98
05/26 1.00 98.00 1.21 0.06 0.00 0.00 0.00 4 Over 15 years 706.28 0.89 0.35 -0.68 5116.76 0.35 -0.09
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.59 0.08 0.00 0.03 -0.14 0.00 5 All stocks 529.56 0.54 0.30 -1.45 3960.61 0.35 -0.60
11/20 0.65 100.20 0.61 0.03 0.08 -0.09 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 103.39 1.63 0.05 0.12 -0.05 0.00 Yield Indices Jan 12 Jan 11 Yr ago Jan 12 Jan 11 Yr ago
Crude Oil† Jan 31.55 0.43 Corn♦ Mar 351.25 -0.50 Nov 01 Nov 01 Prev return stock Market stocks
09/46 3.25 110.97 2.74 0.03 0.10 0.01 0.00 5 Yrs 1.08 1.10 1.01 20 Yrs 2.45 2.46 2.20
Brent Crude Oil‡ 30.52 -0.72 Wheat♦ Mar 468.00 0.00 Can 4.25%' 21 126.74 -0.256 -0.270 -0.41 5.18 70429.32 7
Japan 12/17 0.10 100.30 -0.06 0.00 0.00 0.00 0.00 10 Yrs 1.80 1.82 1.62 45 Yrs 2.40 2.43 2.32
RBOB Gasoline† Jan 1.13 0.02 Soybeans♦ Mar 861.00 -0.50 Fr 2.25%' 20 113.69 -0.710 -0.707 -0.43 20.31 212528.89 14
01/21 0.05 100.06 0.04 0.00 -0.01 -0.03 0.00 15 Yrs 2.25 2.26 2.00
Heating Oil† Jan 1.04 -0.03 Soybeans Meal♦ Mar 270.30 0.30 Swe 0.25%' 22 107.59 -0.759 -0.766 0.42 32.00 234236.91 7
12/25 0.30 100.78 0.22 -0.01 -0.04 -0.09 0.00
Natural Gas† Jan 2.33 -0.03 Cocoa (ICE Liffe)X Mar 2063.00 -5.00 UK 2.5%' 20 357.67 -1.144 -1.134 0.77 6.58 486442.64 25
12/45 1.40 104.75 1.19 -0.01 -0.06 -0.18 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2870.00 -19.00 UK 2.5%' 24 337.85 -0.782 -0.776 1.62 6.82 486442.64 25
Netherlands 04/17 0.50 101.12 -0.39 0.00 0.00 0.00 0.00 Real yield Jan 12 Dur yrs Previous Yr ago Jan 12 Dur yrs Previous Yr ago
Uranium Jan 36.75 0.00 Coffee(Robusta)X Jan 1406.00 3.00 UK 2%' 35 229.07 -0.717 -0.705 1.86 9.08 486442.64 25
07/25 0.25 95.26 0.77 0.04 0.04 -0.04 0.00 Up to 5 yrs -0.85 2.33 -0.85 -1.07 -1.59 2.35 -1.59 -1.63
Carbon Emissions - - Coffee (Arabica)♥ Mar 114.10 -0.25 US 0.625%' 21 101.20 0.405 0.369 0.43 35.84 1117975.20 36
Diesel Mar - - White SugarX 413.30 -1.50 New Zealand 03/19 5.00 107.16 2.63 -0.03 -0.05 -0.12 -0.85 Over 5 yrs -0.81 23.46 -0.78 -0.84 -0.83 23.54 -0.81 -0.87
US 3.625%' 28 131.05 0.937 0.369 0.11 16.78 1117975.20 36
Unleaded (95R) - - Sugar 11♥ 14.02 -0.20 04/27 4.50 110.27 3.39 -0.02 -0.07 -0.21 -0.21 5-15 yrs -0.72 9.57 -0.72 -0.97 -0.82 9.58 -0.82 -1.09
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.73 0.65 0.01 -0.02 -0.01 -0.21 Over 15 yrs -0.82 29.06 -0.79 -0.83 -0.83 29.10 -0.80 -0.85
Base Metals (♠ LME 3 Months) Cotton♥ Mar 61.67 0.24 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 103.28 1.37 0.02 -0.01 -0.13 0.00 All stocks -0.81 20.38 -0.78 -0.85 -0.84 20.52 -0.82 -0.88
Aluminium 1460.00 -2.50 Orange Juice♥ Mar 132.75 -0.25 amount.
Aluminium Alloy 1620.00 15.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 113.35 0.77 0.02 0.10 0.01 -0.73 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4401.00 17.00 Live Cattle♣ Feb 132.03 -0.20 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 101.60 2.69 0.04 0.18 0.14 0.00
Lead 1612.50 15.00 Spain 04/18 0.25 100.21 0.16 0.02 0.05 -0.09 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 159.55 0.33
Nickel 8250.00 55.00 Lean Hogs♣ Feb 59.88 0.00 Spread Spread Spread Spread 10/25 2.15 102.71 1.84 0.05 0.15 0.07 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 13430.00 -175.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.43 1.17 0.00 -0.10 -0.06 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1473.00 7.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.38 0.89 0.03 0.00 -0.06 0.07 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 11 Month Year Australia 2.80 2.22 0.61 Italy 1.63 1.05 -0.56 Switzerland 05/19 3.00 112.91 -0.81 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1085.40 -15.35 S&P GSCI Spt 283.14 -9.76 -28.28 Austria 0.90 0.32 -1.29 Japan 0.22 -0.36 -1.97 05/26 1.25 113.98 -0.09 0.00 0.00 0.00 0.00
Silver (US cents) 1388.00 -9.00 DJ UBS Spot 74.07 -5.51 -28.49 Belgium 0.93 0.35 -1.26 Netherlands 0.77 0.19 -1.42 United Kingdom 07/18 1.25 101.34 0.72 0.01 -0.08 -0.13 -0.11 Data provided by Morningstar | www.morningstar.co.uk
Platinum 843.00 -10.00 R/J CRB TR 162.10 -7.51 -28.27 Canada 1.45 0.87 -0.74 Norway 1.37 0.79 -0.82 01/21 1.50 101.11 1.27 0.02 -0.09 -0.14 0.00
Palladium 470.00 -15.00 Rogers RICIX TR 1895.76 - - Denmark 0.90 0.32 -1.29 Portugal 2.69 2.11 0.50 09/25 2.00 101.76 1.80 0.02 -0.08 -0.14 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.89 0.31 -1.30 Spain 1.84 1.26 -0.34 01/45 3.50 118.95 2.57 0.01 -0.02 -0.05 0.24
Iron Ore (Platts) 39.85 -1.20 UBS Bberg CMCI TR 11.17 -8.05 -29.47 France 0.96 0.38 -1.23 Switzerland -0.09 -0.67 -2.28 United States 12/17 1.00 100.06 0.97 0.03 -0.06 0.00 0.00
Iron Ore (The Steel Index) 40.00 -0.90 LEBA EUA Carbon 8.02 -5.87 18.64 Germany 0.58 0.00 -1.61 United Kingdom 1.80 1.22 -0.39 12/20 1.75 100.63 1.62 0.03 -0.10 0.00 0.00
GlobalCOAL RB Index 49.25 -1.00 LEBA CER Carbon 0.44 -15.38 -4.35 Greece 8.35 7.77 6.16 United States 2.19 1.61 0.00 11/25 2.25 100.53 2.19 0.02 -0.05 -0.07 0.00
Baltic Dry Index 402.00 -13.00 LEBA UK Power 840.00 -43.62 -67.79 Ireland 1.21 0.63 -0.98 11/45 3.00 100.37 2.98 0.01 -0.02 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.
28 FINANCIAL TIMES Wednesday 13 January 2016

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence HBM Hlth SFr 103.30 -0.50 113.50 87.00 - 23.89 5.1 Renold 53.75 -2.00 86.00 50.75 - 21.04 38.5 Antofagasta 374.10 -13.60 811.50 372.50 3.65 24.30 5349.3 PrimyHth 104.00 0.25 113.50 90.56 4.75 11.66 439.6 Intertek 2725 36.00 2949 2196 1.80 23.14 379.8
AvonRub 1011 -2.00 1180 687.39 0.61 18.52 26.5 HenderGp 284.10 3.70 314.30 210.90 3.17 19.82 3033.0 Rotork 165.60 0.80 267.20 157.60 3.03 14.43 4739.9 ..5%Pf 0.60 - 0.60 0.60833.33 - - Redefine 47.00 0.22 59.90 46.58 7.02 9.22 631.2 Lavendon 134.50 -2.50 211.50 120.75 3.42 14.18 343.2
BAE Sys 521.50 -5.00 549.00 419.30 3.93 23.56 10389.9 ICAP♦ 483.00 2.20 573.00 420.60 4.55 23.99 1292.0 Severfd♦ 63.25 1.75 75.00 57.00 0.79 137.80 66.2 AquarsPl 12.00 0.25 15.25 5.53 - -2.86 3120.2 SEGRO 423.80 3.40 466.70 385.30 3.56 3.96 1262.9 MngCnslt 14.75 -0.13 19.00 13.25 5.59 -71.95 550.0
Chemring 176.50 6.50 241.00 131.00 2.32 -20.19 80.0 Indvardn SKr 134.30 0.20 183.50 130.00 4.51 12.67 397.4 SKF SKr 125.30 -3.10 231.70 125.30 4.25 13.57 3745.2 Barrick C$ 11.28 -0.32 16.54 7.89 1.20 -3.16 2432.4 Shaftbry 900.50 2.50 975.50 777.00 1.49 5.38 433.6 MearsGp 454.25 20.50 475.00 375.00 2.20 17.56 57.7
Cobham 276.70 3.80 349.10 250.50 3.85 -160.69 2495.3 ICG 583.50 16.50 712.83 485.70 4.40 9.14 701.9 Spirax-S 3138 24.00 3767.56 2738 2.13 24.08 58.0 BHP Bltn 617.90 -18.20 1670.5 609.10 12.89 14.88 19975.0 Town Ctr 329.88 -0.13 336.75 266.00 3.16 7.31 0.6 MenziesJ 387.75 4.75 525.00 338.50 4.18 34.48 79.4
Meggitt 364.60 3.90 593.50 337.60 3.77 15.17 2516.8 IPF 260.00 -2.90 512.00 230.00 4.62 7.56 2428.3 Tex 106.50 - 130.00 86.30 5.63 7.57 0.7 BisichMg♦ 71.50 -6.00 94.75 60.15 5.59 5.50 16.0 Wkspace♦ 899.50 1.50 989.50 759.00 1.34 4.17 99.2 MichaelPge 410.50 -36.10 568.00 395.10 2.68 19.87 1916.4
RollsRoyceX 556.00 4.00 1061 504.50 4.15 -40.89 4819.4 Investec 433.00 3.30 649.50 406.70 4.62 12.36 2048.0 Trifast 119.00 2.00 134.00 93.50 1.76 14.24 20.9 EVRAZ 61.80 -0.70 209.90 58.00 - -1.20 1791.4 Real Estate Inv & Services MITIE♦ 301.00 1.30 341.00 265.89 3.89 15.06 1259.3
Senior 206.80 -2.30 361.70 206.10 2.72 13.91 906.6 Jupiter 438.00 18.50 481.30 338.79 3.01 13.10 1233.8 Vitec 580.00 -6.00 687.50 575.00 4.14 22.96 76.0 Fresnillo 681.50 - 939.50 569.63 0.28 144.08 1553.7 Cap&Count 398.80 0.20 475.10 364.00 0.38 5.86 937.1 PayPoint 903.00 3.00 1112.15 779.82 4.26 30.62 17.3
UltraElc 1930 17.00 2044 1627 2.30 -169.31 113.0 Liontrust 270.00 -2.00 393.50 260.82 2.96 20.02 2.9 Weir 852.00 1.50 2045 834.34 5.16 - 1042.3 GemDmnd 110.25 -4.50 183.00 94.75 2.88 9.03 44.5 CLS 1786 12.00 2037 195.00 - 3.80 5.3 PremFarn 97.75 -3.25 204.60 87.75 10.64 8.23 865.6
Man 163.10 2.30 217.80 138.60 3.91 11.05 4235.5 Harmony R 23.00 -0.49 38.50 7.92 - -1.77 4791.2 Daejan 6255 5.00 6614.2 5323.5 1.31 6.44 2.2 Rentokil 155.00 0.40 162.50 118.60 1.67 21.71 2569.7
Automobiles & Parts NB GFRIF 91.85 0.05 98.85 91.40 4.05 23.51 885.6
Industrial General Hochschild 42.50 -4.50 134.25 41.75 - -2.96 947.3 Ricardo 871.50 -7.00 967.50 640.00 1.78 24.79 8.8
BritPoly 690.00 17.00 755.00 620.00 2.32 11.09 4.2 Grainger♦ 234.10 -1.60 256.00 183.60 1.08 22.77 2038.2
FordMtr $X 12.62 -0.15 16.74 10.44 4.32 11.16 27318.9 Paragon♦ 333.50 2.70 461.50 326.87 2.88 9.58 1066.9 Kenmr 0.66 -0.03 4.92 0.27 - -0.30 10356.4 HelclBar 445.00 -3.75 475.50 365.25 1.63 4.73 53.7 RbrtWlts 370.00 7.00 478.00 315.75 1.62 21.57 35.4
GKN 288.30 9.60 389.00 248.56 2.91 32.09 5844.1 Providnt 3229 29.00 3654 2414 3.03 24.10 385.3 Coats Group 23.75 -0.25 30.90 20.85 - -354.48 240.8 Lonmin 55.00 -0.25 18970 52.85 - 0.00 2278.5 RPS 232.75 0.50 271.37 181.50 3.64 16.46 210.3
ExovaGroup 139.50 -3.50 199.12 134.50 1.43 19.99 6.8 HK Land $ 6.48 0.01 8.80 6.40 2.68 13.06 3011.4
RathbnBr 2338 -21.00 2373 2014 2.22 30.12 9.1 Petra 77.00 -2.00 194.60 52.77 - 13.18 2407.8 Lon&Assc 24.50 - 42.52 23.50 0.64 -3.46 9.1 Shanks 96.50 2.75 113.50 88.00 3.58 -50.55 120.1
Banks JardnMt $X 48.76 0.61 67.88 45.00 2.72 12.42 524.5
Record 26.38 0.38 41.00 24.00 6.26 9.50 141.8 Petropvlsk 6.00 -0.25 18.89 4.21 - -0.87 3425.2 MacauPrp 141.00 -4.75 235.75 141.00 - -3.33 17.2 SIG 141.00 0.20 212.20 117.00 3.12 25.26 635.1
ANZ A$X 25.05 -0.10 37.25 24.95 9.85 10.21 9608.6 Jard Str $X 25.96 0.21 36.93 25.24 0.95 10.07 416.2
S&U 2377.5 -82.50 2595 1960 2.78 14.14 0.2 PolymtIntl 547.00 -23.00 634.00 424.20 2.48 -16.87 281.0 Mntview 11825 -175.00 12900 9975 2.33 12.87 0.1 SpeedyHr♦ 41.50 1.00 78.75 27.94 1.69 -15.09 161.1
BcoSant 312.00 5.25 526.19 299.69 11.74 8.14 296.6 Macfrlne 56.50 0.50 60.00 35.60 2.92 13.70 49.6
Schroder 2683 36.00 3441 2538 2.91 16.47 272.4 RndgldRs 4188 -163.00 5752.1 3546 0.93 30.43 698.9 RavenRuss 38.50 -0.75 58.56 37.25 - -2.72 391.7 St Ives 219.75 0.25 227.63 156.68 3.25 63.09 208.7
BnkGeorgia 1778 -16.00 2345 1609 2.52 8.75 17.3 REXAM 610.50 11.50 613.00 424.60 2.90 21.59 3063.0
..N/V 2044 30.00 2629 1961 3.82 12.55 4.8 RioTintoX 1652 -45.00 3280 1637.5 8.26 16.43 6504.5 RavenR Prf 128.50 - 146.00 120.51 9.34 - 20.9 TribalGrp 21.75 -0.50 188.00 19.16 8.28 -3.70 273.4
BankIre € 0.33 0.00 0.39 0.07 - 15.82 13516.5 RPC♦ 772.50 6.50 864.50 522.00 1.85 39.60 2180.5
SVG Cap 476.20 0.70 535.00 416.35 - 11.88 210.9 Troy Res A$ 0.21 - 0.77 0.20 - -0.44 607.7 RavenR Wrt 24.50 - 34.00 22.00 - - 0.3 Vp 741.50 1.50 816.00 582.85 2.23 14.96 3.8
BkNvaS C$X♦ 53.67 -0.52 67.72 52.60 5.11 9.45 1162.6 Smith DS 386.50 6.90 423.70 304.30 2.95 28.09 2463.9
TullettPre 356.00 -0.70 415.90 284.70 4.73 7.60 926.3 VedantaRs 234.00 26.40 695.06 207.60 17.79 -0.46 1867.8 Safestre 356.10 -2.50 370.00 233.00 2.09 7.32 182.9 Watermn 96.50 0.25 98.49 55.50 1.45 21.93 48.2
BarclaysX 202.35 2.65 289.90 199.40 3.21 0.68 31436.3 Smiths 890.00 2.00 1243 874.00 4.55 14.42 1522.3
WlkrCrip 49.50 - 55.00 39.70 3.43 29.45 0.3 Savills 870.00 -3.00 991.46 642.50 1.26 20.33 225.6 Wolseley 3450 26.00 4398 3413 2.47 27.96 540.3
CanImp C$X♦ 88.54 -0.19 102.90 83.10 4.93 9.83 640.1 SmurfKap € 23.79 0.30 30.31 19.24 2.47 19.17 356.2 Oil & Gas
HSBCX 505.10 7.30 674.57 478.35 6.64 9.96 27609.8 Food & Beverages Vesuvius 301.90 -3.80 530.00 300.60 5.34 8.49 132.2 Aminex 1.50 - 2.49 1.25 - -17.65 3205.1 SchroderRE 59.25 0.25 63.00 56.10 4.19 7.25 357.2 Tech - Hardware
LlydsBkgX 69.30 0.37 89.35 68.57 2.16 41.32 132281.4 AngloEst 514.50 -10.50 683.10 508.00 0.58 -40.17 14.1 BGX 920.10 2.40 1301.62 785.20 2.07 -17.77 13989.5 Smart(J) 104.50 - 114.80 87.50 2.83 16.21 0.1 ARM Hldgs 980.00 27.00 1332.5 811.50 0.78 43.44 4638.2
RylBkC C$X 70.29 -0.12 81.53 68.05 4.45 10.31 1245.6 AscBrFdX 3049 13.00 3606 2705.75 1.12 42.73 708.5
Industrial Transportation BPX 323.10 -4.95 499.25 252.55 8.33 -11.80 46003.0 StModwen 399.20 -2.30 499.40 391.85 1.15 3.77 219.0 Laird 353.50 -7.40 413.30 300.60 3.54 17.20 742.5
RBSX 283.40 3.00 414.00 279.90 - -12.71 8175.5 Barr(AG) 526.50 7.00 699.36 500.00 2.30 20.00 1220.7 BBA Aviat 182.40 4.10 257.11 165.20 4.06 15.14 2043.9 Cadogan 8.88 - 13.25 7.75 - -0.54 61.8 U and I 227.25 -1.00 293.00 214.75 2.60 10.73 38.7 SpirentCM 69.25 0.75 98.75 64.25 3.56 76.69 153.0
StandChX 513.90 7.30 1166 475.55 9.98 12.01 8404.7 Britvic♦ 710.00 5.50 788.00 632.00 3.03 17.22 835.6 Braemar 440.00 -11.00 513.86 392.50 5.91 20.95 16.1 CairnEng 128.30 -6.30 210.00 127.40 - -2.10 2599.9 UNITE Gp 639.50 6.00 706.00 472.30 1.75 5.16 297.6
..7.375%Pf 106.75 -0.25 128.00 104.50 6.91 - 105.0 C&C € 3.75 -0.01 4.08 3.16 2.97 -14.53 11.3 Clarkson 2109 9.00 2855 1850 2.84 43.47 7.7 Cape 240.00 6.50 275.75 177.00 5.83 13.21 103.5 Urban&C 282.50 1.00 291.00 243.25 0.88 9.20 101.8 Tech - Software & Services
..8.25%Pf 120.00 - 141.00 116.50 6.88 - 5.5 CarrsGroup♦ 157.13 -3.88 178.50 136.00 2.21 12.15 30.5 Eurotunnl € 10.25 -0.08 14.57 10.06 1.65 53.69 2671.9 EnQuest 14.50 -1.00 61.00 14.49 - -1.27 4640.2 AVEVA♦ 1482 - 2350 1267 2.06 33.51 59.3
Fisher J 1120 -7.00 1442 894.50 1.96 14.51 7.5
Retailers Computcnt 867.00 -12.00 885.00 665.00 2.28 9.43 155.0
TntoDom C$X 51.95 0.56 56.48 47.75 3.91 12.15 1905.6 Coca-Cola H 1415 8.00 1638 1051 3.57 22.48 326.2 ExxonMb $X 73.69 - 93.45 66.55 3.66 16.40 11302.6 AA 296.70 3.40 434.50 254.80 - -177.56 920.2
VirginMoney 340.40 -2.60 472.90 295.40 - -851.00 312.1 Cranswk♦ 1920 -10.00 1950 1280 1.77 22.70 20.4 Flybe Grp 84.75 -1.25 110.00 52.00 - 28.25 495.8 GenelEgy 125.25 -8.00 713.12 125.25 - -1.54 2773.5 DRS Data 12.50 0.50 14.90 11.25 - -5.27 8.5
Goldenpt 28.00 -0.75 233.43 24.38 - -0.10 13.0 AO World 150.00 3.50 240.00 118.60 - -64.99 272.5 Elecdata 65.00 - 74.90 62.00 3.08 21.62 1.5
Westpc A$X 30.82 0.26 40.07 29.10 8.13 13.35 5943.8 Dairy Cr♦ 651.00 10.50 700.00 437.90 3.33 47.07 166.7 GeoPark $ 2.79 0.04 5.73 2.45 - -1.58 5.0 AshleyL 26.50 0.25 36.00 24.50 7.55 10.31 2416.0
Devro 277.25 -4.50 328.00 256.17 3.17 49.54 89.1 OceanWil♦ 745.00 - 1028.9 722.00 5.37 68.49 2.6 GrnDnGas 224.00 -0.50 412.25 215.00 - 18.20 0.8 MicroFoc♦ 1469 -31.00 1622 1016.51 2.12 36.14 479.3
Basic Resource (Ex Mining) RoyalMail♦ 440.10 5.00 532.50 396.48 4.77 15.31 3260.5 Brown N 286.40 3.40 400.00 282.40 4.97 19.27 435.2 NCC Grp 294.30 2.20 309.00 192.68 1.24 37.61 107.0
Glanbia € 17.41 0.34 19.59 12.46 0.59 34.08 21.6 GulfKeyst 12.50 - 65.00 11.50 - -0.59 4115.8 Caffyns 560.00 10.00 665.00 480.00 3.62 1.63 0.0
Ferrexpo 22.00 1.00 83.00 12.50 19.08 2.26 848.0 UK Mail♦ 277.38 31.88 569.00 245.25 7.86 18.38 23.4 RM 170.00 5.00 185.00 137.50 2.35 10.70 3.6
Grncore♦ 349.30 6.60 363.40 262.80 1.62 24.89 1606.9 HellenPet € 3.89 0.03 5.65 3.35 - -17.32 226.5 Card Factor 340.00 3.40 401.50 250.72 2.00 19.79 201.9
Mondi 1256 39.00 1614.36 1035 2.37 16.28 1519.8
HiltonFd 553.00 6.50 574.50 388.00 2.41 22.05 21.0 Hunting 240.75 -5.00 677.00 235.50 8.21 -15.14 1125.7 Sage 589.50 1.50 625.50 363.39 2.11 32.75 2493.8
Vale BRLX 9.57 -0.67 27.89 9.39 24.65 -4.15 3925.9 Insurance Dairy Fm $ 6.10 0.02 9.77 5.76 3.44 19.34 525.1 SDL 426.50 11.00 472.00 315.00 0.59 40.50 20.9
Kerry € 76.57 1.50 77.72 57.35 0.72 27.41 42.8 Admiral 1635 20.00 1699 1352.65 2.83 15.58 672.5 ImpOil C$X 40.36 -0.82 55.37 39.30 1.19 20.11 563.6 Debenhm♦ 76.50 10.50 96.80 63.75 4.44 10.05 9665.9 Telecity 1294 -1.00 1306 978.13 1.04 102.81 198.9
Chemicals Nestle SFrX 71.80 1.55 77.00 64.55 3.01 16.22 5330.9 Amlin 665.50 0.50 668.50 445.70 4.06 14.50 1446.5 IE Hldgs 63.00 -14.00 149.78 62.50 - -2.15 286.5 Dignity 2425 -32.00 2643 1729 0.83 -27.87 44.0
PremFds 37.50 -1.25 47.79 30.75 - -1.47 587.7 JKX 25.75 - 39.40 11.76 - -0.68 12.0 TriadGp 27.25 -0.50 43.00 9.25 - 9.52 0.2
Bayer €X 104.20 1.40 146.45 102.30 2.11 23.66 2429.9 AvivaX 480.70 7.00 578.68 428.40 3.77 12.58 7094.9 DixonsCar♦ 473.20 9.30 506.50 398.90 - 22.32 2061.6
Carclo 148.75 8.75 169.75 91.99 1.85 49.72 40.6 PureCircle 423.00 -0.75 590.00 352.24 - 268.57 42.9 Beazley 382.00 4.40 402.08 269.00 2.46 13.29 580.1 Nostrum 340.20 -15.60 670.00 333.40 5.18 47.43 57.0 Dunelm 905.00 22.50 1023 800.00 2.27 19.14 194.3 Telecommunications
Croda 2867 38.00 3150 2569.9 2.28 22.32 284.3 REA 263.00 - 352.00 244.00 2.93 55.10 5.0 Chesnar 338.25 -1.75 367.81 310.00 5.44 13.26 51.3 OphirEgy 81.40 -4.05 171.20 78.00 - -1.88 2616.9 Findel 199.25 -0.75 255.00 162.00 - -28.79 2.5 BTX♦ 473.40 10.40 502.60 391.50 2.41 17.84 13549.3
Elemntis 214.90 1.30 324.10 206.50 2.46 9.34 1284.6 SABMillX 4058.5 8.50 4090 2773 1.83 33.62 1670.5 DirectLine 371.30 9.10 418.90 325.20 3.88 11.64 8306.2 PremOil 19.00 -9.50 191.40 19.00 - -0.20 26551.9 Halfords♦ 325.10 2.70 563.51 310.80 4.49 9.75 748.9 Inmarsat 1110 3.00 1153 804.00 2.90 24.18 1548.0
Syngent SFrX 369.90 6.30 435.20 280.00 2.90 25.63 220.7 StckSpirit 123.50 1.00 235.00 97.75 1.43 18.49 222.7 Eccles prf 133.00 -0.50 146.00 124.50 6.48 - 102.6 RylDShlAX 1351 -3.00 2216.5 1338 9.30 81.66 10755.6 Inchcape 742.00 7.00 906.65 673.50 2.71 19.97 798.1 KCOM Gp♦ 117.50 -2.25 124.50 78.50 4.57 47.06 876.8
Synthomer 300.60 - 364.10 228.00 2.59 20.28 472.3 Tate&Lyl 583.50 12.00 682.50 492.20 4.80 60.55 1420.8 Hansard 109.50 1.00 123.24 80.00 7.76 10.10 8.0 ..B 1349 -6.00 2315 1340.5 9.31 81.54 9127.7 JDSportsF 1019 6.00 1081 439.86 0.69 23.47 264.8 TalkTalk 189.50 -12.10 415.10 188.50 7.28 35.67 3183.8
Victrex 1587 5.00 2202.55 1567 2.87 16.21 289.4 TongtHu R 87.25 1.77 170.00 77.85 4.95 9.91 74.9 Hiscox 1032 7.00 1063 721.00 2.28 12.67 355.6 Schlmbrg $X 63.68 -1.15 95.13 63.19 2.83 25.37 5332.0 Lookers 170.70 0.70 188.80 135.50 1.66 13.93 161.4 TelePlus 959.00 19.00 1227.25 725.50 4.17 23.37 239.3
Unilever 2827.5 64.50 3087 2450 2.91 23.56 2778.6 JardineL 905.50 -23.00 1112 840.50 3.19 17.70 62.5 SEPLAT 58.25 -5.63 166.00 58.00 16.76 5.89 69.4 Marks&Sp 426.80 4.00 600.00 422.70 4.22 16.35 5717.7
Construction & Materials ..NV € 37.95 0.62 42.98 32.64 2.87 23.83 4.9 Soco Int 135.75 -9.75 314.50 117.00 7.17 -11.72 573.0 MossBros 93.38 -1.38 112.00 83.50 5.62 20.99 226.2 Tobacco
Lancashire 631.50 11.50 772.90 552.00 1.41 8.88 645.0
Alumasc 189.50 5.00 221.83 117.15 2.80 12.80 65.9 TrnCan C$X♦ 44.27 0.34 59.50 40.58 4.65 18.59 749.6 Next 6770 -15.00 8175 6735 2.22 15.95 587.8 BrAmTobX 3698 49.50 3931.5 3231.5 4.00 17.17 2588.9
Health Care Equip & Services Leg&Gen 245.70 0.90 296.02 230.40 4.58 14.31 15594.3
Boot(H) 225.00 5.00 245.00 121.00 2.49 13.76 602.8 Tullow 123.10 -9.60 456.90 122.00 3.43 -1.14 13651.2 Ocado 280.50 3.70 478.50 272.95 - 245.84 3730.8 ImpTobX 3589.5 78.00 3665 2785 3.68 20.29 1839.8
Bioquell 137.00 0.50 155.50 80.00 2.41 136.73 62.8 NovaeGp 822.00 19.50 914.39 588.50 3.02 10.78 166.1
ClarkeT 86.75 -0.38 91.00 57.79 3.57 - 13.7 Photo-Me 159.00 -3.75 166.75 131.50 3.07 22.88 618.0
ConstMed 1043 -9.00 1155 820.50 1.74 103.70 1.5 Old Mut 159.50 3.90 20590 150.40 5.45 11.08 9433.1 Pharmaceuticals & Biotech Travel & Leisure
CRH 1867 19.00 2478.5 1454 2.37 34.93 1373.7
PermTSB € 4.28 -0.03 6.30 0.05 - -5.53 62.8 Saga 204.60 6.40 225.10 146.00 2.00 16.67 845.4
GalfrdT 1527 63.00 1824 1195.63 3.93 13.77 284.7 GNStre kr 128.40 0.90 158.50 113.70 0.69 26.93 696.1 BTG 628.00 0.50 835.87 504.00 - 52.76 604.4 888 Hldg 182.00 -0.50 187.75 131.00 2.80 24.23 106.8
UDGHlthC♦ 585.50 5.00 602.50 380.70 1.30 46.68 194.2 PhoenixGrp 878.50 4.00 935.00 789.00 6.08 18.47 364.7 CathayIn 13.00 -0.50 28.29 13.10 - -13.53 0.6 SuperGroup 1550 -18.00 1733.49 755.50 - 31.68 232.1 AirPrtnr 404.88 2.38 470.00 251.00 5.45 14.18 6.2
Keller 821.00 -15.50 1105 780.50 3.07 25.92 179.7 TescoX 155.20 9.75 252.52 137.00 0.75 -2.23 43323.2
PrudntlX 1371 7.50 1761.5 1045.99 2.69 13.96 5435.6 Dechra 1058 -3.00 1110 830.50 1.49 48.11 300.1 bwin.party 125.50 -1.70 132.55 70.40 2.85 346.69 4265.3
KierGp 1282 -9.00 1779 1250 4.58 32.05 128.3 House, Leisure & Pers Goods RSA Ins 407.00 0.60 528.00 390.50 0.49 62.69 4051.6 Genus 1430 -17.00 1624 1210 1.28 22.03 26.2 Cineworld 522.00 -15.50 599.00 397.39 2.59 17.49 1294.3
Kingsp € 23.40 0.03 26.07 13.81 0.65 31.66 47.7
BarrttDev 609.50 15.00 673.50 411.60 1.95 13.68 4599.3 SagicFin 60.00 - 68.00 53.00 4.40 4.80 1.8
Support Services
LowBonr 65.25 1.75 76.00 49.00 4.14 16.80 124.2 GlaxoSmhX♦ 1363.5 16.00 1645 1227.5 5.87 6.75 8575.5 Acal♦ 283.00 -2.00 334.75 240.00 2.69 26.58 53.3 CompassX 1146 13.00 1223.36 963.00 2.40 21.95 3040.8
Bellway♦ 2778 4.00 2897.51 1686 2.20 12.04 483.6 StJmsPl 918.00 11.00 1031 772.50 2.54 27.32 1963.7 HikmaPhm 2192 36.00 2617 1849.38 0.64 28.37 307.6 EntInns 103.30 -1.90 139.60 94.65 - -7.96 314.0
Marshlls 332.50 2.00 379.80 230.50 1.80 27.11 279.6 Aggreko 834.50 -5.00 1724.15 829.00 3.25 11.05 801.3
Berkeley♦ 3672 134.00 3788 2264 4.90 12.18 795.5 Stan Life 368.30 4.90 505.68 353.20 4.96 27.19 4988.3 Oxfd Bio 7.80 0.05 13.38 5.39 - -19.95 4929.1 FirstGrp 103.60 -0.50 129.90 88.65 - 18.71 2403.3
MorgSdl 748.00 -17.00 865.00 619.80 3.61 -21.88 12.1 APR Engy 175.25 0.50 407.44 49.98 1.94 -0.30 25.5
BovisHme 962.00 5.50 1206 750.00 3.64 11.80 1073.5 RichterG $ 20.04 0.15 20.10 12.20 0.57 27.29 0.0 Fuller A 1132.5 -8.50 1250 920.50 1.39 22.46 3.8
Norcros 185.00 -5.00 227.60 150.00 3.03 13.03 16.0
Cairn Homes € 1.21 0.01 1.22 1.00 - - 148.9
Media AshtdGp 1026 6.00 1231 838.00 1.49 14.50 1630.7
StGobn €X 36.76 0.62 44.84 32.36 1.59 26.23 2345.0 4imprint 1290 - 1351.85 804.50 1.59 29.58 10.1 ShireX 4114 189.00 5870 3855 0.36 12.14 6143.5 AtknsWS 1574 30.00 1677 1225 2.32 16.17 166.2 Go-Ahead 2577 19.00 2758 2269 3.32 21.56 41.3
CrestNic 538.50 6.00 598.50 342.00 2.66 12.05 362.8 VecturGp 186.60 0.60 200.16 140.00 - 115.47 862.4 GreeneKg♦ 898.50 -9.00 985.00 760.50 3.20 22.13 613.1
Tyman 252.25 -2.75 342.00 230.00 3.17 36.58 97.9 Creston 121.00 2.50 163.00 108.00 3.47 15.72 72.5 Babcock♦ 954.50 12.50 1152.76 868.50 2.47 17.81 727.2
GamesWk 549.00 11.00 625.00 487.25 9.47 14.34 5.4 IrishCtl € 5.29 - 5.50 3.20 1.87 15.44 0.8
DlyMailA♦ 700.50 14.50 989.50 647.50 2.96 15.43 2193.8 Real Estate Berendsen 1043 4.00 1161 946.50 2.88 20.49 360.0
Electronic & Electrical Equip Gleeson 562.00 2.00 574.00 345.02 1.35 24.45 83.9
Brammer 163.50 4.50 420.50 138.50 6.54 22.82 1437.1 Ladbrokes 119.70 - 147.00 92.85 7.44 -45.83 2270.9
Headlam 496.50 -0.50 550.00 408.00 3.52 16.50 19.9 HaynesPb 107.50 - 149.00 103.00 6.98 -2.02 3.6 Harworth Gr 12.00 - 14.37 7.26 - 2.90 385.9
Dialight 448.00 12.25 830.00 398.00 3.35 23.97 5.1 Bunzl 1848 18.00 1969 1665 1.92 27.07 480.4 MandarO $ 1.43 0.01 1.78 1.42 4.42 19.69 14.2
McBride 160.00 10.25 176.00 74.00 - -416.67 2379.3 ITE Grp♦ 139.50 -6.50 204.75 125.00 5.30 13.36 296.2
e2v Tech 223.50 -0.25 268.00 177.00 2.28 20.32 187.4
ITV 269.20 3.10 281.90 210.00 1.75 20.57 8780.5
REITs Capita 1166 10.00 1336 1032 2.50 31.61 1269.6 Marstons♦ 159.40 -4.70 177.00 137.60 4.20 -33.75 867.3
Halma♦ 856.50 11.00 886.50 659.50 1.40 30.39 712.1 McCarthy&S 277.25 12.25 277.25 180.00 - 23.24 562.1 Assura♦ 54.85 -0.60 64.00 50.75 3.56 9.93 3237.7 Natl Exp 319.10 7.00 334.70 216.30 3.23 19.77 562.2
Persimn 2009 18.00 2156 1423.36 - 13.95 1254.8 JohnstnP 44.00 2.50 174.00 35.00 - -91.86 81.1 Carillion 299.10 3.10 371.40 292.20 5.93 23.91 1394.0
MorganAd 227.50 1.40 375.84 222.40 4.79 39.36 319.1 BigYellw 774.50 8.00 847.00 578.50 2.80 9.21 597.2 Comnsis 38.50 - 63.00 36.25 5.19 -5.29 92.4 PPHE Htl 658.50 - 688.00 449.00 2.69 10.04 5.7
Philips € 23.00 0.49 28.00 20.48 - 36.82 7757.5 News Corp A $ 12.26 0.05 17.55 12.06 0.77 -70.86 2055.7
OxfordIn 660.00 13.00 1114 502.62 1.97 -77.05 36.7 BritLand♦ 745.00 4.00 891.50 738.00 3.74 5.43 2917.3 ConnectGp 166.50 3.25 175.00 128.02 5.71 18.47 161.2 Restaurt 637.00 -13.00 748.70 631.50 2.42 22.75 830.3
PZCusns 269.40 4.40 376.90 262.25 2.91 21.66 261.6 NewsCpB $ 12.70 0.04 17.11 12.24 0.75 -73.43 246.5
Renishaw 1770 - 2672.9 1753 2.39 10.57 37.0 Cap&Reg 63.25 0.75 71.50 50.95 1.50 3.85 494.6 DCC 5320 -25.00 6060 3357 1.59 34.66 186.1 Sportech 59.25 -0.75 72.00 52.56 - -1.41 100.5
ReckittBX 6076 99.00 6450 5215 2.29 25.82 1449.9 Pearson 694.00 11.50 1517.42 680.00 7.35 29.73 4058.9
Spectris 1655 -21.00 2420 1608 2.81 15.33 312.1 Countrywd 379.40 -1.60 608.00 370.20 3.95 18.90 143.5 DeLaRue 435.00 - 606.00 414.75 5.75 11.21 144.4 Stagech 282.00 - 437.90 277.20 3.72 12.24 1006.8
Redrow 454.80 4.50 504.50 254.50 0.88 10.25 581.2 Quarto 209.00 2.00 239.00 148.25 3.96 8.12 2.6
TT Elect 160.50 1.75 164.00 107.00 3.43 -82.18 158.0 DrwntLdn 3471 37.00 3891 3046 1.14 4.81 186.9 Diploma♦ 706.00 -11.00 916.50 600.29 2.46 21.74 42.8 ThomasCook 121.70 1.60 162.20 97.65 - -31.41 6524.5
TaylorWm 198.90 4.00 207.40 121.85 0.78 15.66 11168.0 RELX NV € 14.83 0.17 16.75 12.64 2.53 25.68 2429.6
XP Power♦ 1496 5.00 1750 1376 4.14 14.86 202.7 Gt Portld 800.50 7.00 892.50 734.10 1.12 4.35 654.2 Elctrcmp♦ 223.60 6.40 263.10 167.55 5.25 23.53 730.0 TUI 1269 18.00 1294.78 996.74 - 22.66 1454.9
TedBaker 2700 -55.00 3650 2247 1.49 31.94 61.2 RELX PLCX 1176 16.00 1232 988.50 2.21 27.01 2175.7
Green Reit € 1.50 0.03 1.70 1.23 - - 3.3 EnergyAst 485.25 -4.75 640.00 392.25 - 16.59 19.4 Whitbrd 4199 - 5475 4112 1.96 20.34 947.6
Financial General STV Grp 480.00 -3.00 520.00 338.00 1.67 14.66 1.6
Hammersn 582.50 5.00 708.00 569.50 3.50 6.73 1321.2
Industrial Engineering ThmReut C$X 50.50 0.27 55.92 45.59 3.58 14.82 343.6 Essentra 752.50 -9.00 1069 743.00 2.43 26.93 467.9 Willim H 375.10 -1.60 432.10 312.10 3.25 18.73 5684.9
3i 452.60 6.20 571.50 421.70 1.79 7.23 1621.5 Hansteen 112.20 0.60 128.95 106.80 4.46 5.53 646.1
AberAsM♦ 244.30 -5.60 509.64 244.20 7.67 11.21 6035.1 Bodycote 548.50 7.50 797.59 489.90 2.63 17.56 454.2 UTV Med 175.50 2.00 204.00 137.00 4.13 31.38 106.5 Experian♦ 1133 32.00 1264 1017 2.32 24.99 2255.5 Utilities
Castings 480.00 12.00 490.00 360.00 2.77 14.06 9.9 WPPX 1483 30.00 1616 1273 2.58 15.33 2847.3 HIBERNIA 1.31 -0.02 1.45 1.06 - - 1086.2 Grafton 719.00 -13.00 868.00 615.00 1.50 18.63 1515.1
BrewDlph 288.40 -2.90 361.00 247.70 3.47 16.87 408.6 Highcrft 990.00 - 1090 820.00 3.64 18.14 0.0 Centrica 206.60 0.40 300.70 200.87 6.53 -20.79 13206.9
Canaccord 210.00 -10.00 440.00 201.50 4.69 -7.82 0.2 Fenner 128.00 -1.50 237.00 124.50 9.38 -23.63 760.4 HarvyNah 86.25 -0.50 107.00 72.14 4.13 12.51 2.0 DeeVally 1455 - 1484 1135 4.30 18.97 0.1
Goodwin 1712.5 9.50 3040 1629 2.47 12.66 0.1
Mining INTU 300.90 3.70 376.50 293.10 4.55 15.73 1819.0 Hays 121.20 -8.70 173.70 120.80 2.20 16.58 6402.3
CtyLonInv 329.00 -1.00 380.37 310.00 7.29 12.64 26.1 LandSecs 1125 7.00 1363 1110 2.85 4.26 2029.4 Drax 217.20 4.60 451.30 205.60 5.48 5.08 2751.4
Hill&Sm 742.00 -18.00 776.50 565.00 2.43 28.80 452.8 Acacia 171.50 -10.70 318.90 154.00 1.60 47.86 593.3 Homesve 412.40 -4.10 447.84 320.70 3.00 23.57 97.1
CloseBrs 1329 8.00 1857.39 1295.72 3.80 11.41 406.5 LondonMtrc 158.20 - 173.20 149.20 4.42 6.41 821.0 Natl GridX♦ 949.00 8.00 968.57 806.40 4.52 16.54 5089.8
IMI 794.00 6.50 1454.55 763.00 4.74 12.27 1238.7 AngloAmer 232.50 2.05 1277.59 221.50 23.47 -0.67 19400.4 HowdenJny 506.50 -4.00 538.50 397.90 1.66 21.56 1208.3
DBAG € 28.34 0.49 34.50 24.65 1.33 11.32 11.9 McKaySec 255.00 -10.00 279.75 223.28 3.41 4.45 16.6 Pennon 863.00 10.50 919.50 711.90 3.64 29.83 1172.1
MelroseInd 283.50 3.30 314.78 242.70 2.93 44.36 4302.7 AngloPacif♦ 57.50 0.25 106.43 49.00 14.70 -2.30 144.3 Intserve 503.50 -9.00 878.50 487.20 4.57 13.68 158.7
Hargr Lans 1353 4.00 1533 912.50 1.68 40.91 1065.4 MucklGp 500.13 -9.88 530.00 445.00 4.10 5.62 0.8 UtdUtils♦ 937.50 1.00 1045 816.50 4.02 22.85 1262.1
AnGoldA R 129.53 -7.62 149.99 71.59 - -27.09 3163.3

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence PolarCap♦ 429.00 8.00 489.75 335.00 5.83 16.74 224.2 Industrial General ClontarfEn 0.25 0.03 1.00 0.13 - -5.21 427.0 NewRiver♦ 340.50 0.50 362.00 283.25 3.82 9.04 708.8 Tech - Hardware
Cohort 383.50 - 432.04 230.00 1.30 28.23 32.2 Share 28.00 - 40.75 25.00 2.21 297.87 8.3 Powerflte 87.75 0.50 100.98 49.00 1.21 28.25 67.9 Egdon Res 9.38 -0.25 17.00 6.24 - -4.64 174.1 Palace Cap 360.00 - 405.00 330.00 3.61 6.20 6.2 AminoTech 118.00 - 171.00 103.00 4.24 10.51 283.1
ShoreCap 425.00 - 431.50 400.00 2.35 14.72 0.9 RM2 35.50 0.50 73.00 34.00 - -3.58 258.4 EuropaOil 3.00 - 9.72 2.63 - -3.49 29.6 PnthrSec 367.50 - 402.00 300.00 3.27 16.23 0.2 IQE 21.00 -0.50 27.00 15.78 - 87.14 1687.1
Banks STM Group 67.00 1.50 73.00 23.00 - 36.06 162.0 FalkldO&G 7.75 -0.35 45.00 6.25 - -16.70 1378.4 PSPI 47.00 - 50.00 23.50 - -9.80 0.1
Caribbean I 8.00 - 11.02 3.25 - -0.72 25.0 WH Ireland 90.00 - 130.00 79.00 2.22 34.63 7.0 Insurance GETECH 34.50 - 65.00 21.75 6.43 6.27 3.8 SiriusRE €♦ 0.46 -0.01 0.54 0.39 3.40 7.48 501.9 Tech - Software & Services
STB 3267.5 -30.50 3425 2701 2.08 23.74 4.9 Gable 15.25 - 57.70 12.00 - -2.22 5.0 Infrastrata 1.38 - 5.27 1.01 - -0.28 225.9 SumGermny € 0.97 - 1.00 0.74 3.02 17.16 207.0 Blinkx 16.50 -0.50 40.50 14.75 - -1.14 457.1
Food & Beverages Helios 201.00 - 210.00 120.00 0.75 26.10 0.6 Iofina 11.75 0.38 43.50 8.50 - -4.05 58.7 TaliesinPr 2435 60.00 2545 2115 - 8.82 2.5 BondInt 92.50 -0.50 148.25 86.00 2.38 17.22 4.4
Basic Resource (Ex Mining) FinsbryFd 115.00 - 118.50 56.00 1.37 20.57 93.0 Brady 54.50 - 110.13 33.60 3.39 -42.81 213.6
Ithaca Engy 19.00 -1.50 76.25 16.50 - 13.35 6170.1
CropperJ 655.00 - 718.00 390.00 1.30 30.16 0.0 Nichols 1256 36.00 1496.81 993.50 1.78 21.75 11.7 Media Retailers Datatec 217.50 -7.50 370.00 210.00 2.39 10.23 1.4
KBC Adv 183.75 59.75 184.00 77.00 0.54 46.59 4120.4
RealGdFd 47.50 -1.50 59.40 31.00 - 34.40 37.3 Avesco 236.00 23.50 252.00 112.00 2.54 16.44 222.4 ASOS 3124 97.00 4259 2308 - 70.36 1134.9 DDD 1.75 - 4.50 1.25 - -1.81 15.9
Chemicals Cello Gp 86.00 - 106.70 79.00 3.02 80.30 121.8
PetrelRes 3.13 - 4.98 2.00 - -1.53 10.0
Wynnstay 547.50 - 610.00 474.52 1.86 15.42 4.8 Petroceltic 18.00 -3.50 140.00 16.90 - -0.24 269.5 Koovs 23.25 -0.25 152.50 22.01 - -0.78 54.4 Eckoh 50.75 -1.00 56.00 35.89 0.73 74.41 161.3
Scapa 194.50 0.50 225.25 124.08 0.77 39.25 1343.7 M&Csaatc 305.00 3.00 395.00 280.25 2.06 -41.75 60.7
PetroNeft 2.50 - 5.00 1.86 - -3.68 1605.4 StanlGib 68.50 -0.50 312.00 68.00 7.30 -30.69 428.8 EgSoltns 54.50 - 79.00 53.10 - -37.82 1.7
Health Care Equip & Services MissionMk 42.25 - 50.00 39.00 2.37 9.37 5.0
Construction & Materials Plexus 159.50 1.50 245.00 148.00 0.71 25.88 44.5 Support Services Iomart 260.00 5.50 310.00 162.00 0.96 30.43 535.6
Advnc Med 175.25 -2.75 187.29 120.00 0.40 27.36 148.1 Next15Cm 241.50 1.00 278.25 147.00 1.14 156.21 14.8
Abbey 1247.5 32.50 1283 833.35 0.69 7.57 4.5 Rockhop 27.00 -0.75 83.00 24.00 - -5.28 1784.9 K3BusTc♦ 365.50 - 377.00 205.00 0.34 34.21 5.6
AVO 7.00 - 16.90 3.75 - -8.86 488.4 YouGov 148.50 1.00 156.00 101.50 0.54 48.15 15.0 AndSyks 330.00 20.00 355.00 270.00 7.21 14.18 11.6
AccsysTch 66.25 0.25 81.50 56.00 - -42.39 10.1 Sound Oil 17.00 0.50 26.73 8.75 - -10.79 2382.3 mporium 10.00 -0.25 11.25 3.62 - -1.31 291.7
CareTech 235.00 - 262.15 190.00 3.40 11.08 36.2 Augean 51.25 -1.75 62.00 37.65 0.98 10.34 201.4
Aukett 6.75 0.13 8.50 5.50 3.11 8.86 50.0 Mining TowerRes 0.11 - 0.66 0.08 - -0.48 866.2 OMG 44.50 - 51.56 33.75 1.12 42.38 34.2
CircleHldgs 31.25 -4.25 57.00 31.00 - -9.09 21.5 Begbies 44.88 -0.13 51.08 38.50 4.90 -35.62 6.5
Amara 8.30 0.15 20.00 6.80 - -4.90 268.3 UnJackOil 0.13 -0.01 0.30 0.12 - -4.81 7242.1 Progility 1.33 -0.10 7.50 1.25 - 5.43 110.0
Electronic & Electrical Equip ImmunDiag 230.00 -2.50 340.00 216.40 1.30 52.81 6.0 Christie 131.00 3.50 162.00 118.00 1.72 11.44 2.2
Pub Tech 129.00 - 208.00 114.00 - -3.97 1.1
SphereMed 10.50 - 23.50 8.30 - -1.34 7.5 AMC 6.60 -0.53 44.58 5.50 - 6.57 3421.1 VictorOil 36.13 0.13 89.05 31.98 - -1.14 129.5 Empres 98.00 0.50 106.90 39.03 0.71 11.82 78.4
CeresPow 5.45 -0.23 10.08 5.50 - -4.09 197.1 SciSys 70.00 -2.00 95.51 38.50 2.30 -61.14 5.0
ElektronT 6.63 - 8.70 4.00 - 10.01 50.0 Tristel 132.00 -2.50 152.00 67.10 1.40 25.22 147.6 BotswanaD 0.85 -0.05 2.50 0.63 - -5.18 175.0 Pharmaceuticals & Biotech Hargreaves 236.00 -17.25 650.00 236.00 11.31 3.67 62.0
CentAsiaM 125.00 -3.25 198.00 118.21 9.91 12.86 76.4 WANdisco 77.00 4.00 544.95 69.75 - -0.84 6.1
FlowGp 14.50 - 49.00 9.75 - -3.01 327.2 Abcam 637.00 8.50 674.00 420.00 1.24 34.30 440.7 Impellam 820.00 5.00 859.60 500.00 0.76 13.39 94.7
House, Leisure & Pers Goods Connema 1.30 - 2.80 0.25 - -3.69 2.1
LPA 92.00 5.00 99.00 58.00 1.68 81.27 31.3 AllcePharm♦ 47.25 0.75 63.00 33.25 2.12 15.14 718.9 ISG 148.00 1.00 355.00 119.50 3.32 -4.46 110.1 Telecommunications
Airea 17.25 - 23.00 12.75 3.48 13.33 10.0 C'royG&NR 31.50 -1.00 34.50 0.28 - -5.64 0.6 JhnsnSrv 90.00 1.50 95.41 65.00 1.89 61.39 5157.8
ThorpeFW 225.00 2.75 250.70 130.00 1.47 22.26 53.8 Epistem 120.00 - 339.00 110.00 - -3.99 1.0 AltNetwks♦ 507.00 -0.50 545.00 405.00 2.98 21.73 46.6
Churchll 802.50 - 860.00 502.00 2.01 24.90 5.3 GrekaDrill 3.90 - 12.00 2.50 - -3.75 45.0 JourneyGp 197.00 0.50 208.72 120.00 1.51 15.64 4.6
Zytronic 382.50 -8.00 440.00 252.00 2.69 15.73 65.2 e-Thera 27.25 - 49.40 20.25 - -8.81 105.0 Peoples Op 82.50 - 147.60 80.00 - -36.42 0.1
gamingrealm 23.75 1.25 36.89 20.00 - -5.08 6.0 Herencia 0.06 - 0.30 0.04 - -0.63 150.0 LonSec 2075 -25.00 2400 1800 2.99 21.69 0.3
GW Phrms 338.00 29.25 708.55 300.25 - -18.69 1161.8
Financial General Mulberry 954.00 -7.50 1000.00 800.50 - -656.12 7.0 HighldGld 61.00 4.00 61.00 34.00 7.45 -10.08 685.7 Matchtech 549.50 29.00 587.80 483.85 3.69 18.58 24.1 Travel & Leisure
Portmern 945.00 -10.00 980.00 860.20 2.80 15.46 4.2 HtchChMd 2710 10.00 2896.6 1140.15 - 156.83 80.4
Ambrian 5.00 0.13 12.05 4.50 - -1.30 205.6 KarelianDd 0.93 - 1.85 0.80 - -30.83 25.0 NewmkSec 3.08 - 4.93 1.96 2.44 7.20 35.3 32Red PLC 142.00 - 150.35 36.00 1.69 51.41 407.0
SIR 272.50 - 315.00 235.40 - 19.73 13.7 ImmuPhar 26.50 -0.25 65.00 19.10 - -8.92 16.0
Arbuthnot 1530 - 1650 1320 1.76 21.01 1.3 OracleC 2.45 -0.08 3.20 0.70 - -15.71 2570.0 NWF 197.50 1.00 206.75 123.50 2.58 15.51 23.8 CastleStIn# 32.50 -1.00 41.25 17.00 - 5.80 108.9
TelfordHms 391.50 1.25 495.00 345.00 2.84 8.16 238.8 ReNeuron 3.50 0.25 6.50 2.26 - -7.28 1689.6
Aurora 11.25 -0.25 11.77 8.00 - -0.81 3.1 ShantaGold 5.63 -0.75 11.45 4.00 - -11.60 1540.9 Paysafe 407.50 5.50 416.75 326.17 - 62.33 3367.9 Celtic 73.00 - 79.00 70.75 - -17.16 3.9
WalkerGb 204.50 1.00 244.85 178.00 1.13 22.74 22.4 Sareum 0.25 -0.01 0.65 0.17 - -3.85 17168.9
BP Marsh 146.50 -3.50 159.00 128.00 1.88 6.51 25.9 SierraRut 15.50 -0.75 32.00 15.38 - -13.35 68.1 PennaCns 322.50 -6.50 340.00 28.30 1.09 18.74 28.1 ..6%CvPf 65.00 - 80.00 35.00 4.98 - 1.0
SinclairIS 39.25 - 61.33 31.50 - -26.17 583.7
BrooksMac 1976.5 8.50 2075 1320 1.47 29.01 5.1 Industrial Engineering Sirius Min 14.00 -0.25 29.50 6.40 - -41.42 7211.0 Petards 12.38 0.13 14.65 10.00 - 9.84 50.3 ..Cv Pf 135.00 - 150.00 120.00 - - 0.8
Vernalis 62.38 -0.13 88.29 44.45 - -93.80 22.8
Camellia 9325 -74.00 9992 8401 1.35 316.41 0.4 Stratex 1.43 - 2.50 1.00 - -2.95 100.0 RedhallGp 6.13 -0.38 15.50 5.00 - -0.98 332.0 Dalata 390.00 - 410.00 111.15 - 210.24 148.0
600 Grp 12.63 - 20.00 11.35 - 9.10 30.2
Fairpoint 143.00 - 195.00 105.66 4.48 20.57 13.6
Molins 81.00 -0.50 96.80 66.10 6.79 -19.75 19.4
ZincOx 0.63 0.05 18.00 0.50 - -0.05 4557.0 Real Estate Renew 383.00 - 407.78 237.00 1.50 18.19 60.1 Dart♦ 587.00 9.00 599.00 267.50 0.51 9.28 429.0
Leeds 36.25 - 42.00 30.00 - 9.56 50.0 Conygar♦ 171.00 - 195.00 163.50 1.02 22.16 58.1 Restore 299.50 1.00 316.00 232.00 0.80 54.68 169.6 GoalsSocc 146.50 -1.50 242.00 127.00 1.37 10.26 10.2
MattioliWds 632.50 -12.50 653.00 468.00 1.48 32.28 8.6
MS Intl 205.00 - 227.50 116.00 3.90 25.01 0.1 Oil & Gas MinoanGp 7.88 0.25 13.50 6.00 - -12.48 259.2
Pres Tech 165.00 2.00 395.00 140.00 5.09 34.28 16.4 FltchKng 47.00 -0.50 63.90 41.11 4.79 4.03 0.4 SafeCharge 247.00 1.00 297.00 235.01 2.16 26.91 25.0
Miton 26.50 -0.25 31.00 18.50 2.26 9.21 80.3 AmeriRes 21.25 -0.75 43.10 19.50 - -32.84 2736.8 PeelHtls 98.00 - 110.00 82.50 1.53 19.32 9.6
TP Group 2.13 - 6.75 1.76 - -2.01 2522.7 InlandHms♦ 87.25 -0.50 89.00 54.00 0.69 6.34 1123.6 Servoca 26.38 - 34.75 17.50 - 15.19 27.2
Numis♦ 240.50 6.25 278.00 196.09 4.57 13.13 138.8 AndesEnrg 18.00 0.50 38.75 16.50 - -13.26 22.0
Lok'nStor 352.50 1.00 374.00 235.00 2.08 46.13 34.7 Utilityws 168.75 -9.75 288.25 115.00 2.67 11.59 320.8
Park Grp 71.50 -1.50 97.97 52.00 3.36 14.22 44.2 BahamasP 1.75 -0.03 3.25 0.92 - -7.48 4925.2 Utilities
LXB Retail 97.50 -0.50 149.00 77.00 - - 252.6
BorSthnPet 2.18 - 7.18 1.25 - -4.39 453.9 ModernWtr 7.75 - 20.50 7.00 - -0.35 0.3
SeaEnergy 4.50 - 30.40 3.04 - -0.48 7.0

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin Inv 708.00 6.50 737.00 637.50 3.37 690.8 2.5 JPM Clavr 582.00 2.00 645.18 550.50 3.52 601.2 -3.2 SchdrUKMd♦ 476.50 3.50 504.50 423.00 1.78 512.9 -7.1 VCTs 52 Week Dis(-) Marwyn Val 210.00 - 251.93 199.07 - - -
Price +/-Chg High Low Yld NAV or Pm Edin WWd 440.50 - 502.44 394.10 0.34 466.2 -5.5 JPMGIConv 89.75 -0.25 106.00 89.36 6.27 94.0 -4.5 ScotAmer 246.50 1.50 276.50 230.44 4.28 232.7 5.9 Price +/-Chg High Low Yld NAV or Pm TerraCat 106.00 - 110.89 91.00 - - -
3i Infra 170.00 0.80 189.56 163.40 4.58 - - EP Global 226.00 0.50 262.10 212.05 1.46 229.0 -1.3 JPM GEI♦ 79.75 -1.25 124.67 78.50 6.14 82.6 -3.5 Scottish In♦■ 570.00 6.50 670.00 552.50 2.14 642.7 -11.3 AlbionDev 68.25 -0.25 70.89 66.00 7.33 72.8 -6.2
AbnAsianIn 146.50 1.25 207.75 142.50 5.60 160.6 -8.8 Estabmt 162.50 - 187.00 138.00 3.02 194.7 -16.5 JPM I&C Uni♦ 341.00 -0.50 370.00 339.00 - 337.4 1.1 ScottMort 257.90 3.10 283.40 226.20 1.14 247.6 4.2 Albion Ent 91.50 - 91.90 85.50 5.46 101.3 -9.7 ISDX
AbnAsian 723.50 6.75 953.50 653.77 1.38 825.5 -12.4 Euro Ast 1092.5 10.00 1160 966.10 4.83 1061.8 2.9 JPM Inc&Gr 104.38 - 115.85 102.00 4.31 106.0 -1.5 ScottOrtll♦ 700.50 -6.00 898.50 660.00 1.64 814.2 -14.0 AlbionTech 73.50 - 78.49 72.00 6.80 79.2 -7.2
EuroInvT♦■ 685.00 15.00 849.00 667.00 2.04 704.1 -2.7 JPM Ind 485.25 0.25 605.50 443.00 - 558.6 -13.1 SecTstScot 124.25 1.50 148.00 120.50 4.19 131.8 -5.7 52 Week Vol
AbnJapInv 457.00 -5.50 571.00 430.00 0.57 505.8 -9.6 AlbionVCT 66.50 - 67.90 63.00 7.52 68.9 -3.5
F&C Cp&I 250.75 0.25 277.00 247.20 3.99 245.6 2.1 JPM JpSm 261.00 -5.25 278.00 209.00 - 294.3 -11.3 Seneca I&G 142.88 - 150.00 134.00 4.02 141.3 1.1 Price +/-Chg High Low Yld P/E 000s
AbnLatAmIn♦ 43.38 0.25 73.00 42.27 9.80 48.8 -11.1 ArtemisVCT♦■ 60.00 - 74.00 57.00 6.67 65.2 -8.0
F&CGblSmlr♦ 945.50 -4.00 1028.92 875.00 1.02 941.0 0.5 JPM Jap 285.00 -1.00 307.95 232.00 0.98 313.6 -9.1 Shires Inc♦ 203.88 1.88 261.00 199.00 6.01 219.1 -6.9 ArsenalFC 1567000 - 1600000 1475000 - 48.64 0.0
..Sub# 0.05 -0.10 0.61 0.10 - - - ..VCT 2 96.50 - 99.00 91.00 6.74 100.2 -3.7
F&CMgdG 151.00 1.00 158.00 139.00 - 145.9 3.5 JPM Mid 1048 4.00 1100 777.00 1.96 1035.8 1.2 StdLf Eqt 448.00 3.50 471.46 396.50 3.21 441.8 1.4 ShephdNm 1170 - 1185 1150 2.23 24.00 2.3
AbnNewDn♦ 141.50 1.00 205.23 136.00 2.69 159.3 -11.2 ..VCT 3 100.25 -0.75 103.49 94.00 7.48 104.6 -4.2
F&CMgdI 116.00 1.25 130.00 112.10 4.27 112.9 2.7 JPM O'seas 198.00 - 231.80 186.00 1.52 1078.7 -81.6 StdLf Sml 380.00 6.00 386.00 272.00 1.22 372.1 2.1 Thwaites 117.50 - 120.00 116.00 3.80 7.08 3.5
AbnNewThai 355.25 6.75 489.88 324.00 2.31 415.5 -14.5 ..VCT 4 94.00 - 95.19 88.25 3.19 97.0 -3.1
AbnSmlCo♦ 212.00 - 229.00 177.00 3.07 242.2 -12.5 FidAsian 230.50 - 285.50 195.50 0.48 263.6 -12.6 JPMRussian 285.13 0.13 391.00 259.50 4.56 340.2 -16.2 StrategicEq 210.50 -1.75 241.50 175.75 0.37 206.2 2.1 ..VCT 5 81.00 -0.25 82.49 72.00 4.94 86.1 -5.9
Abn UK 290.25 2.50 334.75 281.83 3.51 299.0 -2.9 FidChiSpS 129.30 1.80 179.78 105.06 1.01 149.3 -13.4 JPMSnrSec♦ 83.75 0.13 101.05 82.50 7.34 87.7 -4.5 Temp Bar 1003 -1.00 1235.01 997.00 4.67 1049.1 -4.4 BSC VCT♦ 86.00 - 91.00 82.00 6.40 97.9 -12.2
Abf Gd Inc 203.00 0.50 212.00 162.25 3.62 213.2 -4.8 Fid Euro 166.80 0.80 187.50 155.91 1.86 173.3 -3.8 JPM Smlr 881.00 1.00 929.20 603.55 1.09 1022.8 -13.9 TempEmerg 384.50 2.30 607.78 370.00 2.15 434.1 -11.4 ..VCT2 56.00 - 59.00 51.98 8.04 61.6 -9.1 Guide to FT Share Service
Abf Sml 1156 2.00 1235 1015 2.14 1229.6 -6.0 Fid Jap 84.75 0.75 88.50 72.00 - 96.0 -11.7 JPM US Sml 176.25 4.75 193.75 155.25 - 173.3 1.7 TRIG 102.80 0.10 109.00 93.80 5.91 - - Crown Place 28.50 - 30.50 27.75 8.77 31.7 -10.1
AcenciADbt $ 1.39 0.01 1.80 1.36 4.14 1.6 -13.1 Fid Spec 193.50 1.50 217.00 164.80 2.22 - - JupUSSmCo 573.50 8.00 704.03 560.00 - 657.3 -12.7 ThreadUKSel 166.00 - 180.00 156.00 2.62 179.3 -7.4 FrsightSol 102.50 -1.00 106.00 96.00 5.85 110.0 -6.8
AdvDvpMk 373.00 -8.13 483.00 350.00 - 425.6 -12.4 FinsG&I 564.50 4.00 609.36 522.00 2.07 556.8 1.4 KeystoneInv 1735 15.00 1900 1715 2.91 1817.4 -4.5 TREurGth 634.00 4.00 661.00 509.63 1.03 670.4 -5.4 Inc&GthVCT 102.00 1.00 105.00 88.25 9.80 103.2 -1.2
Alliance 490.50 2.60 531.50 437.00 2.02 531.9 -7.8 FstPacfic H HK$ 4.75 0.04 8.10 4.56 4.04 - - Law Deb 474.50 0.50 545.50 452.50 3.31 434.2 9.3 TroyInc&G♦ 69.50 0.50 74.71 64.43 3.31 68.6 1.3 KingsAYVCT 18.25 - 19.00 17.25 5.48 19.9 -8.3 For queries about the FT Share Service pages e-mail
AllianzTech 610.00 1.00 650.00 507.00 - 635.7 -4.0 For & Col♦ 425.50 4.60 467.90 395.60 2.21 456.2 -6.7 LinTrain £ 560.00 - 585.00 379.50 1.15 407.0 37.6 UtilicoEmg 160.50 -0.50 173.75 119.11 3.80 184.0 -12.8 Maven I&G 66.75 - 75.00 59.50 8.84 62.6 6.6 ft.reader.enquiries@morningstar.com.
AltAstsOps 42.00 - 46.81 37.50 - 50.4 -16.7 Geiger 12.00 - 24.50 10.50 - 15.7 -23.6 Ln&StLaw 333.00 -0.75 384.00 328.00 4.26 356.8 -6.7 UtilEmSubs 9.75 - 14.00 7.01 - - - MavenVCT2 48.75 - 64.00 45.00 8.21 50.3 -3.1 All data is as of close of the previous business day. Company classifications
Art Alpha♦ 238.75 -1.50 294.25 236.56 1.49 305.9 -22.0 GenEmer 432.90 2.90 575.00 391.70 - 479.1 -9.6 Lowland♦ 1261 7.00 1440 1231.25 3.09 1257.7 0.3 UIL Inv 103.50 - 126.00 100.00 7.25 137.6 -24.8 MavenVCT4 85.50 - 86.00 80.00 5.85 97.2 -12.0 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
..Sub 16.00 - 32.00 14.00 7.50 - - GFIS 14.00 - 20.89 12.00 - 40.9 -65.8 M&GHighInc 152.00 3.00 179.95 144.00 3.03 164.0 -7.3 ValAndInc 237.00 - 264.75 228.50 3.80 300.6 -21.2 MavenVCT5 35.50 - 37.00 32.00 7.04 39.3 -9.7 100 constituent stocks are shown in bold.
AsianToRt 184.00 -2.00 224.00 163.25 1.77 204.4 -10.0 GRIT 3.75 -0.25 25.11 2.50 - - - Majedie 267.00 2.00 283.00 230.75 2.81 259.6 2.9 Witan 754.00 8.50 850.00 676.78 2.08 748.9 0.7 Nthn 2 VCT♦ 71.00 - 88.00 67.25 7.75 77.1 -7.9 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Aurora 154.00 -0.25 162.23 144.00 2.50 155.4 -0.9 GoldenPros 18.88 -0.13 34.00 17.00 - 21.9 -13.8 Man&Lon 247.25 3.75 259.28 221.25 1.41 294.3 -16.0 WitanPac 224.75 -0.25 274.75 203.03 2.02 254.0 -11.5 Nthn 3 VCT♦ 93.75 - 104.00 86.50 5.87 100.0 -6.2 are based on intra-day trading over a rolling 52 week period. Price/earnings
Axiom 101.50 - 103.00 100.00 - - - Hansa 771.00 -2.00 917.00 740.50 2.08 1079.0 -28.5 MCGlobPort♦ 170.00 - 195.00 155.00 2.41 169.5 0.3 WorldTst♦ 248.00 1.50 285.25 231.00 1.40 280.4 -11.6 NthnVent 76.00 -0.50 85.36 74.00 7.89 81.3 -6.5 ratios (PER) are based on latest annual reports and accounts and are updated
BG Japan 451.00 7.00 493.25 383.75 - 443.4 1.7 ..A 760.00 - 930.00 747.25 - 1079.0 -29.6 MCurPac 250.75 -1.75 336.00 236.73 2.99 286.9 -12.6 WwideHlth 1871 -4.00 2108.5 1590.25 0.67 1899.9 -1.5 ProVenGI 76.25 - 81.25 73.00 5.90 78.7 -3.1 with interim figures. PER is calculated using the company’s diluted earnings
BG Shin 446.00 -5.00 469.00 310.54 - 438.0 1.8 Hend Alt 214.75 - 241.75 210.53 1.40 266.7 -19.5 MercantIT♦ 1774 2.00 1845 1435.04 2.42 1911.1 -7.2 ProVenVCT 92.50 - 97.89 89.50 5.41 100.2 -7.7 from continuing operations. Yields are based on closing price and on dividends
Conventional - Private Equity 52 Week Dis(-)
BSRT 14.50 - 34.00 13.00 - 39.5 -63.3 Hen Div 89.00 -0.75 95.50 86.50 5.73 86.9 2.4 MrchTst 418.50 6.00 500.00 401.50 5.71 430.0 -2.7 UnicornAIM 144.00 - 144.79 122.00 4.17 163.1 -11.7 paid in the last financial year and updated with interim figures. Yields are
Price +/-Chg High Low Yld NAV or Pm
Bankers 600.00 3.50 674.50 548.00 2.52 593.0 1.2 HenEuroF♦ 990.00 -9.00 1148.5 925.91 2.47 969.6 2.1 Mid Wynd 332.50 -1.00 352.50 304.50 1.16 324.0 2.6 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
HenEuro 858.00 - 957.00 779.50 2.10 840.0 2.1 Miton Globa 158.00 0.25 164.65 155.95 - 175.0 -9.7 AbnPvtEq 88.50 0.50 96.00 82.00 2.53 129.4 -31.6 Ordinary Income Shares 52 Week HR
BrngEmEu♦ 438.25 3.75 607.70 419.02 4.34 477.7 -8.3 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
HenFarEs 268.75 4.50 362.00 238.25 6.88 268.1 0.2 MitonUKMic 54.25 - 57.65 50.00 - - - Altamir € 10.43 0.13 11.82 9.60 4.51 17.1 -39.0 Price +/-Chg High Low Yld WO GRY 0%
BH Global 1270 5.00 1343.6 1235 - 1343.0 -5.4 capital changes where appropriate.
HendGlob 361.25 3.25 416.81 334.86 2.77 396.6 -8.9 MMP 2.63 -0.13 4.19 2.55 - - - Dun Ent 307.50 - 378.00 303.00 1.53 508.6 -39.5 JPM I&C♦ 84.50 0.50 106.00 82.00 7.87 -16.8 -3.1
..USD $ 12.50 -0.10 13.35 12.20 - 13.2 -5.3 Trading volumes are end of day aggregated totals, rounded to the nearest
HenHigh♦ 172.00 0.50 195.25 165.90 5.06 167.6 2.6 Monks♦ 406.50 1.90 458.90 371.50 0.97 439.3 -7.5 Electra 3712 10.00 3757 2996 1.02 3973.4 -6.6 JupiterDv&G 3.63 - 5.40 3.00 20.41 9.8 -46.6
BH Macro 2017 -6.00 2191 1990 - 2121.0 -4.9 1,000 shares.
HenInt Inc 116.38 0.88 137.69 106.92 3.82 116.0 0.3 MontanSm 575.50 3.50 590.00 446.25 1.30 605.6 -5.0 ElectraPrf 151.75 - 152.75 147.43 - 149.5 1.5 M&GHI&Gt 48.50 - 65.50 45.50 - -18.9 -6.4
..EUR € 19.30 0.03 21.10 19.01 - 20.6 -6.3
Hen Opp 799.00 -26.75 1059.1 794.49 1.56 932.7 -14.3 Mur Inc 646.00 4.00 793.58 632.60 4.84 679.5 -4.9 F&C PvtEq 240.00 1.00 244.50 214.00 4.52 294.7 -18.6 Rghts&Icp 4850 25.00 4950 3850 - -93.1 -7.7 Net asset value per share (NAV) and split analytics are provided only as a
..USD $ 19.34 0.04 21.10 19.05 - 20.3 -4.7
HenSmlr 673.00 1.00 703.00 553.50 1.71 706.7 -4.8 Mur Int♦ 779.00 5.00 1070 767.00 5.78 794.1 -1.9 GraphEnt 562.50 -3.50 615.94 555.00 1.78 714.0 -21.2 guide. Discounts and premiums are calculated using the latest cum fair net
BiotechGth 659.00 19.00 898.92 582.73 - 694.1 -5.1 Income Shares 52 Week HR
Herald 715.50 -11.00 750.00 650.12 - 854.0 -16.2 ..B 725.00 - 1144.44 627.00 - 794.1 -8.7 HVPE 885.00 1.00 912.00 806.92 - 1159.9 -23.7 asset value estimate and closing price. Discounts, premiums, gross redemption
BlckRCom♦ 51.00 -1.75 94.14 49.86 11.79 49.8 2.4 Price +/-Chg High Low Yld WO GRY 0%
HICL Infra 151.20 0.30 161.40 149.90 4.86 139.4 8.5 NB DDIF $ 1.09 - 1.21 1.00 - - - HgCapital 1090 - 1169 1050 2.94 1306.5 -16.6 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
BlckREmEur 184.38 -3.13 240.00 164.58 - 206.5 -10.7 JPM In&Gr 97.13 - 100.50 92.50 4.63 -80.5 12.1
Impax Env. 152.25 0.25 167.75 139.00 0.92 168.6 -9.7 NewCtyEgy 11.38 - 21.50 8.32 - 15.6 -27.1 JPM Pvt Eq $ 0.95 - 1.07 0.83 - 1.2 -20.8 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BlckRFrnt 99.50 -2.50 118.50 95.25 4.16 104.4 -4.7 M&GHghIc 47.75 -0.25 63.00 45.00 - -18.8 -10.0
Ind IT 400.00 - 410.00 280.00 1.25 394.8 1.3 NewCityHY 54.25 -1.00 65.11 52.00 7.94 55.7 -2.6 JZ Capital 389.50 0.50 480.00 376.00 - 652.2 -40.3 in pence.
BlckRGtEur 251.00 3.50 264.50 222.25 1.93 248.5 1.0 Rghts&I 1225 10.00 1350 925.00 2.94 - 40.6
IntBiotech 481.50 -23.50 620.00 411.53 - 532.3 -9.5 NewIndia 312.25 1.25 371.30 263.00 - 342.2 -8.8 Mithras 146.50 - 151.91 126.50 0.68 171.6 -14.6
..Sub 9.24 0.25 25.63 8.00 - - -
Intl PP 139.30 -0.10 141.80 130.00 4.52 127.3 9.4 New Star IT 72.50 - 78.00 65.45 - 110.1 -34.2 NB PE Ptnr $ 10.47 -0.03 12.20 10.40 - - - Capital Shares 52 Week HR X FT Global 500 company
BlckR I&G 179.50 - 193.00 172.00 3.18 179.1 0.2
InvAsTr 170.00 1.00 213.58 147.00 2.15 190.3 -10.7 NorthAmer 805.00 9.00 906.45 729.50 3.79 889.6 -9.5 Nthn Invs 567.50 - 695.00 452.00 3.00 566.9 0.1 Price +/-Chg High Low SP WO TAV 0% ♦ trading ex-dividend
BlckRIncStr♦ 129.25 1.00 141.00 124.44 5.21 127.0 1.8
Inv Inc 270.25 0.25 305.00 264.00 3.76 287.4 -6.0 NthAtSml 2287 -8.00 2299 1813 - 2699.2 -15.3 Pantheon 1278 3.00 1395 1220 - 1679.2 -23.9 JPM Inc&Gr 7.63 - 15.19 6.75 7.8 1.0 - ■ trading ex-capital distribution
BlckRckLat 257.00 -2.00 413.13 251.32 7.50 292.0 -12.0
InvPerp♦ 69.63 - 79.00 68.40 7.18 67.8 2.7 Oryx Int 650.00 - 660.00 400.00 - 687.0 -5.4 PantheonR 1200 - 1300 1180 - 1679.1 -28.5 M&GHghIc 1.45 -0.50 5.30 1.58 19.6 19.0 - # price at time of suspension from trading
BlckRckNrAm 111.63 1.63 124.50 101.00 3.58 120.9 -7.7
IPST BalR 114.50 - 123.00 112.00 - 112.8 1.5 PacAsset 187.50 - 226.15 156.25 1.39 189.0 -0.8 PrincssPE € 7.85 - 8.15 6.90 6.73 9.2 -14.7
BlckRSmlr 971.00 1.00 1010 781.25 1.49 1031.7 -5.9 Zero Dividend Preference Shares 52 Week HR The prices listed are indicative and believed accurate at the time of publication.
IPST Gbl Eq 156.00 - 172.00 150.65 2.95 150.1 3.9 PacHorzn 165.38 3.63 223.77 142.50 0.85 182.9 -9.6 Riverstone 775.00 1.00 1114 750.00 - 1092.1 -29.0
BlckRThrmt 348.00 -5.75 370.00 272.39 1.26 390.7 -10.9 Price +/-Chg High Low SP WO TAV 0% No offer is made by Morningstar or the FT. The FT does not warrant nor
IPST Mngd 102.75 - 104.00 101.00 - 103.2 -0.4 Perp I&G 404.60 2.10 431.00 382.40 3.06 395.9 2.2 StdLfEuPv♦ 205.00 -4.00 223.50 198.00 3.29 271.7 -24.5
BlckRWld 167.00 -4.50 336.91 167.00 12.57 195.3 -14.5 Abf Gd Inc 153.88 - 154.50 146.25 -51.2 - 159.7 guarantee that the information is reliable or complete. The FT does not accept
Bluecrest A 193.50 - 200.00 185.00 - 200.7 -3.6 IPST UK Eq 169.50 - 175.50 153.78 3.63 163.6 3.6 PerAsset♦ 34480 180.00 36313.1 33000 1.62 34780. -0.9 Conventional - Property ICs 52 Week Dis(-)
EcofinWatr 155.75 - 156.50 152.67 -85.7 -97.4 160.7 responsibility and will not be liable for any loss arising from the reliance on
Brit Emp 447.00 3.50 557.08 435.50 2.35 510.5 -12.4 InvPpUK 380.00 -1.00 395.35 318.00 4.51 402.9 -5.7 5 Price +/-Chg High Low Yld NAV or Pm
JPM I&C 175.63 - 176.50 170.41 -20.9 - 192.1 or use of the information.
Brunner 510.50 -7.50 584.12 506.10 2.35 573.2 -10.9 Invs Cap A♦ 88.50 - 102.00 87.00 5.13 92.3 -4.1 PolarFins 103.00 - 112.84 94.00 3.01 105.9 -2.7 Direct Property JupiterDv&G 114.50 - 116.50 109.00 -4.9 - 125.9
Calednia 2320 - 2517.66 2110 2.18 2745.9 -15.5 Invs Cap B 89.50 - 103.00 88.00 3.83 92.3 -3.0 ..Sub 4.75 - 9.50 3.75 - - - The FT Share Service is a paid-for-print listing service and may not be fully
AXA Propty 53.88 0.88 55.50 41.57 - - - JZ Capital 365.50 - 365.00 353.00 - - 369.8
CanGen C$ 17.50 -0.24 22.00 17.08 3.10 22.5 -22.2 Invs CapU♦ 355.00 - 404.95 349.00 1.93 369.4 -3.9 PolarHealth 175.50 2.00 187.50 163.00 2.05 176.8 -0.7 representative of all LSE-listed companies. This service is available to all listed
CustdnREIT 106.50 - 110.50 104.00 5.16 - - M&GHghIc 117.00 - 117.50 112.25 -21.8 -98.3 122.8
Cap Gear 3304.5 27.00 3575 3152.28 0.48 3312.9 -0.3 JLaingInf 117.00 -0.20 128.60 113.99 5.66 105.9 10.5 PolarTech 593.00 3.00 647.00 487.40 - 591.1 0.3 companies, subject to the Editor’s discretion. For new sales enquiries please
F&CComPrp 132.30 0.60 149.00 129.50 4.54 130.9 1.1 UILFn16 189.25 -0.13 189.90 182.75 - - -
City Merch 179.00 - 194.00 179.00 5.59 177.3 1.0 JPM Amer 267.50 1.40 295.50 238.90 1.21 278.6 -4.0 ProspJap $ 1.04 -0.02 1.09 0.90 - 1.4 -25.7 email jessica.llewelyn@ft.com or call 020 7873 4012.
F&CUKRealE 101.50 0.25 105.50 94.00 4.93 97.1 4.5 UILFn18 144.75 - 146.50 136.75 - - -
CityNatRs 78.38 0.38 107.00 75.00 7.15 91.9 -14.7 JPM Asn♦ 199.88 0.88 268.92 182.00 1.10 223.5 -10.6 QatarInvF $♦ 1.03 -0.03 1.49 1.02 3.10 1.1 -6.4
Longbow♦ 103.25 0.25 106.75 101.25 5.81 - - UILFn20 125.00 0.25 126.50 109.25 - - -
City Lon 372.20 1.80 418.35 359.00 4.07 361.2 3.0 JPM Brazil 34.88 - 62.80 32.25 1.15 37.5 -7.0 RIT Cap 1637 17.00 1690 1383 1.81 1552.6 5.4
PictonProp 70.25 -0.25 74.75 65.25 4.48 73.0 -3.8
DexionAb 174.00 -0.25 191.00 173.75 - 188.6 -7.7 JPM China♦ 148.50 -0.25 233.96 136.30 1.08 171.1 -13.2 RobecoNV € 30.38 - - - - - -
SLIPropInc♦ 82.75 0.50 90.25 78.10 5.61 82.0 0.9 Investment Companies - AIM Data provided by Morningstar
DiverseInc♦ 92.00 2.50 97.50 78.00 2.55 90.9 1.2 JPMElct MC 100.00 - 101.47 97.01 0.35 101.3 -1.3 RolincoNV € 28.32 - - - - - -
UKComPrp 81.70 0.40 94.00 79.55 4.50 84.4 -3.2
Dun Inc 214.00 1.75 273.00 212.25 5.26 229.0 -6.6 ..MG 593.00 -4.50 635.00 568.00 1.14 601.7 -1.4 Ruffer Inv 208.00 1.25 226.00 206.00 - 204.7 1.6 52 Week Dis(-)
Dun Sml 200.38 -2.13 229.00 176.03 2.65 236.4 -15.2 ..MI 99.00 0.50 110.00 92.00 3.84 99.6 -0.6 SchdrAsiaP♦ 251.00 - 321.50 226.25 1.10 279.2 -10.1 Property Securities
Price +/-Chg High Low Yld NAV or Pm
JPM Emrg 514.50 4.50 674.65 486.00 1.07 574.6 -10.5 Schdr Inc♦ 244.75 1.50 348.25 242.50 4.13 257.4 -4.9 SchdrGlbRe 127.00 -0.13 132.98 111.90 1.71 131.7 -3.6
EcofinWatr 115.38 -0.38 158.90 110.50 6.07 145.0 -20.4 AdFrntMkt 49.00 - 60.50 48.13 - 54.2 -9.6
JPM EurGth 242.50 3.25 263.00 217.00 2.52 246.8 -1.7 SchdrJap 146.13 -0.63 165.00 128.50 1.23 161.7 -9.6 TR Prop 296.60 2.20 325.00 279.01 2.60 308.8 -4.0
..CULS 99.75 - 106.00 99.21 - - - CrysAmber 154.00 - 173.96 148.00 0.3 157.2 -2.0
EdinDragn 228.00 1.50 311.00 212.50 0.96 254.4 -10.4 JPM EurInc♦ 134.50 0.50 147.50 120.00 3.53 129.3 4.0 SchdrOrient 168.50 - 215.25 154.00 4.60 173.2 -2.7 GLI Finance 39.88 1.25 65.00 32.00 12.5 - -
JPM EuSm♦ 281.50 6.00 294.46 202.00 1.14 292.8 -3.9 SchdrUK♦ 149.00 0.75 174.00 145.00 3.36 164.4 -9.4
..CULS 101.75 -0.25 107.89 101.03 - - - IndiaCap 59.50 - 69.40 52.00 - 72.8 -18.3 www.morningstar.co.uk
Infra India 18.25 - 21.99 12.00 - 49.1 -62.8
MMP 2.63 -0.13 4.19 2.55 - - -
Wednesday 13 January 2016 FINANCIAL TIMES 29

MANAGED FUNDS SERVICE

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

Artemis Strategic Bond R Q Inc 53.18 56.50 -0.09 4.22 Blackrock UK Long Lease £ 1079.95 - 8.43 0.00 Cavendish Worldwide Fund B Class 289.90 - 1.60 0.69 Asia Pacific Ops W-Acc £ 1.05 - 0.01 0.41 UK Corporate Bond £ 1.20 - 0.00 3.99 HL Multi-Manager Equity & Bond Trust M Inc 106.66 112.10 -0.34 1.04

ACPI Global UCITS Funds Plc (IRL) Artemis UK Growth R Acc 448.34 475.00 3.44 0.54 BLK Intl Gold & General $ 3.89 4.11 -0.12 0.00 Cavendish Worldwide Fund A Class 289.20 - 1.50 0.00 Fidelity Asian Dividend Fund A-Accumulation £ 1.05 - 0.01 1.39 UK Corporate Bond - Gross £ 2.26 - -0.01 3.85 HL Multi-Manager Equity & Bond Trust A Acc 144.94 152.34 -0.47 2.22
www.acpishard.com
Regulated Artemis UK Smaller Cos R Acc 1167.93 1260.20 5.27 0.47 Cavendish Worldwide Fund C Acc 297.40xd - 1.60 0.62 Fidelity Asian Dividend Fund A-Income £ 0.99 - 0.01 3.29 UK Gilt Bond £ 1.28 - 0.01 1.96 HL Multi-Manager Equity & Bond Trust M Acc 144.95 152.34 -0.46 1.03

ACPI Emerging Mkts FI UCITS Fund USD A $ 104.74 - -0.56 0.00 Artemis UK Special Sits R Acc 514.82 547.34 3.58 1.61 BONHOTE Cavendish AIM Fund B Class 159.30 - -1.10 0.71 China Consumer £ 1.37 - 0.01 0.08 UK Gilt Gross £ 2.05 - 0.00 1.93 HL Multi-Manager Strategic Bond Trust A Acc 166.68 171.83 0.01 1.80
Other International Funds
ACPI Global Credit UCITS Funds USD A $ 13.95 - -0.02 0.00 Artemis US Abs Ret I Acc 108.59 - 0.07 0.00 Cavendish AIM Fund A Class 155.10 - -1.10 0.00 Emerging Asia £ 1.12 - 0.01 0.14 UK Long Corp Bond £ 1.35 - 0.00 4.40 HL Multi-Manager Strategic Bond Trust M Acc 166.67 171.82 0.02 0.89
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6649.00 - -46.00 2.28
ACPI Global Fixed Income UCITS Fund USD A $ 152.39 - -0.27 0.00 Artemis US Equity I Acc 113.15 - 1.10 0.28 Cavendish Asia Pacific Fund B Class 144.90 - 0.20 1.74 Dragon Capital Group Emerg Eur, Mid East & Africa H £ 1.16 - 0.01 1.06 UK Long Corp Bond - Gross £ 2.48 - 0.00 4.24 HL Multi-Manager Strategic Bond Trust A Inc 138.32 142.59 0.01 1.82
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9920.00 - 129.00 0.92 c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Q ACPI India Fixed Income UCITS Fund USD A $ 9.94 - -0.02 - Artemis US Select I Acc 114.96 - 1.07 0.12 Cavendish Asia Pacific Fund A Class 144.80 - 0.10 0.77 Fund information, dealing and administration: funds@dragoncapital.com Enhanced Income - Acc £ 1.88 - 0.03 5.29 UK Long Corporate Bond Fund - Gross Income £ 10.77 - -0.03 4.38 HL Multi-Manager Strategic Bond Trust M Inc 138.31 142.58 0.02 0.91
Other International Funds Retail Share Classes
ACPI India Fixed Income UCITS Fund USD A3 $ 84.90 - -0.18 0.00 Artemis US Select I Inc 102.67 - 0.94 - Cavendish Asia Pacific Fund C Acc 151.30 - 0.20 1.71 Enhanced Income - Inc £ 1.19 - 0.01 7.27 HL Multi Manager Emerging Markets A Acc 81.97 84.48 -0.58 0.33
Braemar Group PCC Limited (GSY) Vietnam Enterprise Inv. (VEIL) NAV $ 3.59 - 0.06 0.00 Emerging Markets - retail £ 1.18 - 0.01 0.07
ACPI International Bond UCITS Fund USD A $ 17.81 - -0.04 0.00 Artemis US Smlr Cos I Acc 115.15 - 0.29 0.00 Regulated Cavendish European Fund B Class 140.30 - 2.80 1.10 European - Inc £ 1.40 - 0.02 0.76 HL Multi-Manager European A Acc 100.32 103.41 -0.99 0.74
Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 {*}CAR - Net income reinvested
UK Agricultural Class A £ 1.25 - -0.02 0.00
Artemis US Ex Alpha I Acc 121.69 - 1.13 0.14 Cavendish European Fund A Class 139.20 - 2.90 0.29 European £ 15.91 - 0.23 1.15 HL Multi-Manager UK Growth A Acc 101.13 104.25 -1.06 1.24
Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00
UK Agricultural Class B £ 1.37 - -0.02 0.00
ACPI Select UCITS Funds PLC (IRL) Cavendish Japan Fund B Class 154.50 - -4.20 0.72 European Opportunities £ 3.75 - 0.06 0.23
FIL Fund Management (LUX)
Regulated
Student Accom Class B £ 0.55 - -0.17 0.00 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Artisan Partners Global Funds PLC (IRL) Cavendish Japan Fund A Class 153.60 - -4.20 0.00 Extra Income £ 0.26 - 0.00 3.35 Haussmann
ACPI Balanced UCITS Fund USD Retail $ 13.39 - -0.08 0.00 DSM Capital Partners Funds (LUX) Phone: 800 22 089, 800 22 088
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Other International Funds
Cavendish North American Fund B Class 185.80 - 1.70 0.52 www.dsmsicav.com Extra Income - Gross £ 0.26 - 0.00 3.33 Regulated
ACPI Balanced UCITS Fund EUR Retail € 10.09 - -0.06 0.00 Tel: 44 (0) 207 766 7130
Haussmann Cls A $ 2682.99 - 11.43 0.00
FCA Recognised Regulated China Consumer A-GBP £ 13.35 - -0.42 0.00
Cavendish North American Fund A Class 180.50 - 1.70 0.00 Global Dividend - Acc £ 1.61 - 0.02 3.03
ACPI Balanced UCITS Fund GBP Retail £ 10.21 - -0.06 0.00 Artisan Partners Global Funds plc Global Growth I2 Acc € 128.81 - -0.21 0.00 Haussmann Cls C € 2344.47 - 7.66 0.00
China Focus A-GBP £ 3.90 - -0.14 0.69
Artisan Emerging Markets I USD Acc $ 6.10 - -0.12 0.00 Cavendish Technology Fund B Class 281.60 - 3.20 0.02 Global Dividend - Inc £ 1.43 - 0.02 3.26
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Global Growth I1 Eur € 96.32 - -0.16 - Haussmann Cls D SFr 1239.94 - 3.45 0.00
Global Financial Services A-GBP £ 0.43 - 0.00 0.11
Artisan Global Equity Fund Class I USD Acc $ 13.39 - -0.18 0.00 Cavendish Technology Fund A Class 267.30 - 3.00 0.00 Global Focus £ 13.01 - 0.11 0.00
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - -
Global Health Care A-GBP £ 0.55 - -0.01 0.00
Artisan Global Opportunities I USD Acc $ 11.38 - -0.08 0.00 Cavendish UK Balanced Income Fund B Class 133.10 - 0.60 4.93 Global High Yield Fund - A Gross Acc £ 11.68 - -0.02 4.97
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Eclectica Asset Management (UK) Heartwood Wealth Management Limited (IRL)
CCLA Investment Management Ltd (UK) Global Industrials A-GBP £ 0.60 - 0.00 0.00
Artisan Global Value Fund Class I USD Acc $ 14.71 - -0.03 0.00 Cavendish UK Balanced Income A Class 126.50 - 0.60 5.18 40 Dukes Place, London EC3A 7NH Global High Yield Fund - A Gross Inc £ 9.63 - -0.01 5.68 Regulated
ACPI Horizon UCITS Fund $ 12.62 - -0.05 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET
Order Desk and Enquiries: 0345 608 0941 Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - 0.00 0.56 Heartwood Caut Multi Asset B Acc 136.86 - -0.30 0.00
Authorised Inv Funds Cavendish UK Select Fund B Class 138.50 - 1.30 2.31 Global High Yield Fund - A Net Acc £ 11.24 - -0.01 5.04
Artisan US Value Equity Fund Class I USD Acc $ 9.59 - -0.11 0.00 Authorised Corporate Director - Capita Financial Managers
The Public Sector Deposit Fund
Authorised Inv Funds Global Real Asset Securities £ 1.29 - -0.02 0.00
Cavendish UK Select Fund A Class 138.30 - 1.30 1.39 Global High Yield Fund - A Net Inc £ 9.62 - -0.02 5.68
Abbey Life Assurance Company Limited (UK) The Public Sector Deposit Fund-share class 1 ♦ F 100.00 - 0.00 0.49
CF Eclectica Agriculture A EUR Acc ♦ € 1.34 - 0.00 0.00 Global Technology A-GBP £ 0.25 - 0.00 0.00
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Global Property - Acc £ 1.50 - 0.02 1.28 Henderson Global Investors (UK)
Ashmore Sicav (LUX) The Public Sector Deposit Fund-share class 2 ♦ F 100.00 - 0.00 0.34 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
additional fund prices can be found @ www.abbeylife.co.uk CF Eclectica Agriculture A GBP Acc ♦ 100.71 - 0.32 0.00
2 rue Albert Borschette L-1246 Luxembourg Global Telecomms A-GBP £ 0.28 - 0.00 1.15
Insurances Cedar Rock Capital Limited (IRL) Global Property W Inc £ 1.23 - 0.02 3.00 www.henderson.com
FCA Recognised The Public Sector Deposit Fund-share class 3 ♦ F 100.00 - 0.00 0.38
Regulated CF Eclectica Agriculture A USD Acc ♦ $ 1.45 - -0.01 0.00 India Focus A-GBP £ 4.27 - 0.00 0.00 Authorised Inv Funds
Life Funds
Ashmore SICAV Emerging Market Debt Fund $ 88.66 - -0.37 9.02 Global Special Sits £ 25.58 - 0.31 0.00
The Public Sector Deposit Fund-share class 4 ♦ F 100.00 - 0.00 0.44 Cedar Rock Capital Fd Plc $ 369.41 - 7.37 0.00 Asia Pacific Capital Growth A Acc 661.70 - -0.50 0.16
Prop. Acc. Ser 2 1565.20 1647.60 -0.40 - CF Eclectica Agriculture C EUR Acc ♦ € 1.39 - 0.00 0.42 Latin America A-GBP £ 1.22 - -0.01 0.67
Ashmore SICAV Emerging Market Frontier Equity Fund $ 134.02 - -0.56 0.98 Index Emerging Markets P-Acc £ 0.90 - 0.01 2.75
The Public Sector Deposit Fund-share class 5 ♦ F 100.00 - 0.00 0.34 Cedar Rock Capital Fd Plc £ 393.49 - 17.56 0.00 Asian Dividend Income Inc 79.65 84.06 0.43 6.95
Selective Acc. Ser 2 1546.10 1627.50 -1.20 - CF Eclectica Agriculture C GBP Acc ♦ 104.59 - 0.33 0.41
Ashmore SICAV Emerging Market Total Return Fund $ 75.47 - -0.35 6.41 Index Europe ex UK P-Acc £ 1.00 - 0.02 2.44
Cedar Rock Capital Fd Plc € 354.01 - 12.24 0.00 Cautious Managed A Acc 233.00 - 1.20 3.31
American Ser. 4 1649.70 1736.50 11.10 - CF Eclectica Agriculture C USD Acc ♦ $ 1.50 - 0.00 0.43
Index Japan P-Acc £ 1.13 - 0.01 1.52
Findlay Park Funds Plc (IRL)
Ashmore SICAV Global Small Cap Equity Fund $ 116.40 - -1.29 0.00 CCLA Investment Management Ltd (UK) 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Cautious Managed A Inc 144.10 - 0.70 3.37
Custodian Ser. 4 483.60 509.10 -0.20 -
Senator House 85 Queen Victoria Street London EC4V 4ET Index Pacific ex Japan P-Acc £ 0.98 - 0.01 3.81 FCA Recognised
Ashmore SICAV Local Currency Fund $ 79.03 - -0.08 0.32
Property & Other UK Unit Trusts Charles Schwab Worldwide Funds Plc (IRL) China Opportunities A Acc 774.00 - -0.40 0.66
Equity Ser. 4 535.40 563.60 0.10 - American Fund USD Class $ 76.16 - -0.04 0.00
EM Mkts Corp.Debt USD F $ 83.83 - -0.28 9.18 CBF Church of England Funds Regulated Index UK A-Acc £ 0.80 - 0.01 2.90
Emerging Markets Opportunities A Acc 132.90 - 0.70 0.69
European Ser 4 557.50 586.90 4.60 - Investment Inc 1289.79 1304.06 -35.21 3.78 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 American Fund GBP Hedged £ 41.50 - -0.42 0.00
EM Mkts Loc.Ccy Bd USD F $ 71.94 - -0.43 4.41 Index UK P-Acc £ 0.98 - 0.01 3.15
European Growth A Acc 167.30 - 3.10 0.53
Fixed Int. Ser. 4 898.60 945.90 -0.50 - Investment Acc 2652.14 2681.48 -72.40 - American Fund GBP Unhedged £ 52.40 - -0.22 -
Index US A-Acc £ 1.63 - 0.02 1.40
European Selected Opportunities A Acc 1254.00 - 25.00 0.67
Intl Ser. 4 425.80 448.20 1.20 - Global Equity Inc 146.69 148.31 -4.27 4.31 Chartered Asset Management Pte Ltd Latin American Fund USD Class $ 10.07 - -0.11 0.00
Index US P-Acc £ 1.26 - 0.02 1.60
Other International Funds EdenTree Investment Management Ltd (UK) European Special Situations A Acc 94.66 - -0.29 1.05
Japan Ser 4 362.70 381.80 -9.00 - Global Equity Acc 216.52 218.91 -6.30 - Latin American Fund GBP Unhedged £ 7.03 - -0.11 -
CAM-GTF Limited $ 270848.04 270848.04 -9192.82 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Index World A-Acc £ 1.40 - 0.02 1.77
Fixed Interest Monthly Income A Inc 21.58 22.63 0.00 5.83
Man. Ser. 4 1619.80 1705.00 1.90 - UK Equity Inc 140.14 141.41 -5.14 4.05 Authorised Inv Funds
CAM GTi Limited $ 612.98 - -36.72 0.00 Index World P-Acc £ 1.14 - 0.01 1.89
Amity UK Cls A Inc 206.90 - 1.70 1.45 Global Care Growth A Inc 192.40 - 1.00 0.00
Money Ser. 4 524.40 552.00 0.00 - UK Equity Acc 209.41 211.30 -7.68 - Foord Asset Management
Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 Japan £ 2.78 - 0.02 0.00
Amity UK Cls B Inc 206.00 - 1.80 2.24 Other International Funds Global Equity Income A Inc 48.31 - 0.67 3.87
Prop. Ser. 4 1112.10 1170.60 -0.30 - Fixed Interest Inc 161.64 162.46 1.07 3.96
Aspect Capital Ltd (UK) Japan Smaller Companies £ 2.05 - 0.01 0.00 Foord International Trust $ 33.15 - -0.30 0.00
Higher Income Cls A Inc 115.70 - 0.50 5.00 Global Growth Fund 1981.79 2071.36 17.19 0.00
Custodian Ser 5 464.20 488.70 -0.30 - Other International Funds Fixed Interest Acc 496.99 499.48 3.29 -
MoneyBuilder Asset Allocator £ 1.16 - 0.00 0.64 Foord Global Equity Fund_Class B $ 11.53 - -0.12 0.00
Aspect Diversified USD $ 440.64 - 7.91 0.00 Higher Income Cls B Inc 119.30 - 0.50 4.91 Global Technology A Acc 941.10 - 9.10 0.00
International Ser 5 408.80 430.30 1.20 - Property Fund Inc 133.01 137.47 -1.84 6.51
MoneyBuilder Balanced £ 0.50 - 0.01 4.04
Aspect Diversified EUR € 264.78 - 4.79 - UK Equity Growth Cls A Inc 234.30 - 1.00 0.59 Multi-Manager Absolute Return A Acc 134.30 - 0.00 0.39
Managed Ser 5 1554.90 1636.70 1.80 - Property Fund Acc 234.22 242.07 2.73 -
Money Builder Dividend £ 2.55 - 0.03 4.54 Franklin Templeton International Services Sarl (IRL)
Aspect Diversified GBP £ 135.50 - 2.44 0.00 UK Equity Growth Cls B Inc 238.80 - 1.10 1.18 Multi-Manager Active A Acc ▲ 169.30 - 1.20 0.00
Money Ser 5 513.50 540.50 0.00 - JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
MoneyBuilder Growth £ 0.73 - 0.00 2.39
Aspect Diversified CHF SFr 126.48 - 2.32 0.00 Amity Balanced For Charities A Inc 105.30 - 0.70 6.11 Other International Funds Multi-Manager Distribution A Inc 123.90 - -0.40 3.39
Property Ser 5 1067.50 1123.70 -0.30 -
CCLA Fund Managers Ltd (UK) MoneyBuilder Growth ISA £ 0.74 - 0.01 2.55 Franklin Emerging Market Debt Opportunities Fund Plc
Cheyne Capital Management (UK) LLP (IRL)
Multi-Manager Diversified A Acc 76.42 - -0.25 2.91
Pension Funds Aspect Diversified Trends USD $ 130.15 - 0.32 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Amity European Fund Cls A Inc 195.50 - 3.70 1.23
Regulated Franklin Emg Mkts Debt Opp CHFSFr 16.83 - -0.61 8.30
Property & Other UK Unit Trusts MoneyBuilder Income £ 0.35 - 0.00 3.24
American 1897.10 1997.00 13.00 - Aspect Diversified Trends EUR € 130.28 - 0.30 0.00 Amity European Fund Cls B Inc 197.10 - 3.80 2.08 Multi-Manager Global Select Acc 173.00 - 0.60 0.00
COIF Charity Funds (UK) Cheyne Convertibles Absolute Return Fund € 1331.51 - -1.66 0.00 Franklin Emg Mkts Debt Opp EUR € 11.85 - -0.42 7.39
Equity 4655.80 4900.80 -4.60 - MoneyBuilder Income -Gross £ 0.35 - 0.00 3.23
Aspect Diversified Trends GBP £ 135.23 - 0.32 0.00 Investment Inc 1199.69 1212.96 -26.99 3.62 Cheyne Global Credit Fund € 116.04 - -0.16 0.00 Amity Global Equity Inc for Charities A Inc 99.02 - 1.22 4.01 Multi-Manager Income & Growth A Acc 148.40 - -0.50 2.23
Franklin Emg Mkts Debt Opp GBP £ 9.95 - -0.23 7.13
European 1115.70 1174.40 7.50 - Multi Asset Adventurous A-Acc £ 1.28 - 0.01 0.44
Investment Acc 11625.62 11754.21 -261.63 - Cheyne European Mid Cap Fund € 1114.16 - -7.90 0.00 Amity International Cls A Inc 195.50 - 1.70 1.38 Multi-Manager Income & Growth A Inc 136.30 - -0.40 2.26
Franklin Emg Mkts Debt Opp SGD S$ 21.85 - -0.58 6.33
Fixed Int. 1642.60 1729.00 -1.40 - Multi Asset Alloc Adventurous A-Acc £ 3.62 - 0.03 3.07
Atlantas Sicav (LUX) Ethical Invest Inc 184.74 186.78 -4.36 3.73 Amity International Cls B Inc 196.80 - 1.70 2.24 Multi-Manager Managed A Acc 220.70 - 1.30 0.42
Franklin Emg Mkts Debt Opp USD $ 16.71 - -0.47 7.19
Regulated Multi Asset Alloc Strategic A-Acc £ 1.15 - 0.00 0.38
International 899.00 946.30 1.80 - Ethical Invest Acc 239.60 242.25 -5.65 - Multi-Manager Managed A Inc 216.70 - 1.30 0.41
Cheyne Capital Management (UK) LLP Amity Sterling Bond Fund A Inc 104.30 - 0.00 5.20
American Dynamic $ 3338.85 - -68.10 0.00
Japan 382.30 402.40 -9.10 - Other International Funds Multi Asset Alloc Def - Gross A £ 1.11 - 0.00 0.36
Global Equity Inc 141.34 142.90 -3.56 4.41 Amity Sterling Bond Fund B Inc 112.80 - 0.00 5.19 Sterling Bond Acc 196.07 204.87 -0.13 2.88
American One $ 2990.05 - -154.70 0.00 Cheyne European Event Driven Fund € 145.83 - -0.11 0.00 Frontier Capital (Bermuda) Limited
Managed 4176.50 4396.30 1.60 - Multi Asset Alloc Def - Net A £ 1.11 - 0.01 0.38
Global Equity Acc 211.18 213.51 -5.31 - Other International Sterling Bond Inc 60.79 63.51 -0.04 2.92
Bond Global € 1404.32 - 6.08 0.00 Cheyne Real Estate Credit Holdings Fund £ 161.86 - 0.94 0.00
Property 2884.40 3036.20 -0.80 - Multi Asset Alloc Growth A £ 1.17 - 0.01 0.09 Commercial Property-GBP Class £ 71.42 - -0.53 -
Fixed Interest Inc 132.80 133.47 1.62 4.14 Edinburgh Partners Limited (IRL) Strategic Bond A Inc 124.20 - -0.10 5.25
Eurocroissance € 833.31 - -40.64 0.00 Cheyne Real Estate Credit Holdings Fund III £ 111.98 - 0.56 0.00
Security 1476.70 1554.40 0.10 - 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Multi Asset Defensive £ 1.21 - 0.00 0.26 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
Fixed Interest Acc 769.45 773.31 9.38 - UK & Irish Smaller Companies A Acc 532.30 - -2.50 0.00
Far East $ 617.21 - -43.50 0.00 Dealing - Fax only - +353 1 434 5230
Cheyne Real Estate Debt Fund Class A1 £ 131.65 - 0.83 0.00 Multi Asset Defensive - Gross £ 1.21 - 0.00 0.26
Selective 1971.90 2075.70 1.00 - Property Inc 114.29 118.12 -1.61 5.79 FCA Recognised UK Absolute Return A Acc 151.80 - 0.50 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 Edinburgh Partners Opportunities Fund PLC
Formerly Hill Samuel Life Assurance Ltd Multi Asset Growth £ 1.32 - 0.00 0.25
Property Acc 248.62 256.95 2.77 - UK Alpha A Acc ♦ 111.30 - 1.10 1.85
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 European Opportunities I EUR € 2.29 - -0.01 2.30
Atlantis Investment Management Ltd (IRL) Cheyne Total Return Credit Fund 2020 $ 103.39 - 0.01 - MultiManager Balanced £ 1.09 - 0.00 0.56
Local Authorities Property Fd (LAMIT) (UK) UK Equity Income & Growth A Inc 573.70 - 3.10 3.96
Managed Ser A (Life) 1535.30 1624.70 -7.30 - 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL European Opportunities I GBP £ 1.71 - -0.01 2.46
www.atlantis-investmenet.com, Tel: 0207 877 3377 Property 274.76 295.14 2.73 4.81 Multi Asset Open Growth A-Acc £ 0.45 - 0.00 0.60
Managed Ser A (Pensions) 1017.00 1070.50 -6.00 - UK Index A Acc 470.50 - 4.10 2.95
Regulated European Opportunities I USD $ 2.50 - -0.02 2.08
Cohen & Steers SICAV (LUX) Multi Asset Open Strategic A-Acc £ 1.20 - 0.00 1.04
Formerly Target Life Assurance Ltd Atlantis China Fund $ 6.44 - 0.00 0.00 UK Property A Acc 193.08 203.24 0.05 4.04
Regulated European Opportunities A EUR € 2.24 - 0.00 1.60
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 CG Asset Management Limited (IRL) Fundsmith LLP (1200)F (UK)
Multi Asset Open Strategic A-Inc £ 0.29 - 0.00 2.55
Atlantis China Healthcare Fund $ 1.87 - 0.02 0.00 European Real Estate Securities € 22.5493 - -0.1208 1.58 UK Property A Inc 97.68 102.81 0.03 4.16
Managed (Life) 1559.10 1641.20 -7.20 - Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Global Opportunities I USD $ 1.52 - -0.01 2.12 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
00 353 1 434 5098 Multi Asset Strategic £ 1.50 - 0.00 0.30 www.fundsmith.co.uk, enquiries@fundsmith.co.uk
Atlantis Japan Opportunities Fund $ 2.43 - -0.11 0.00 Europ.RealEstate Sec. IX € 30.2420 - -0.1619 0.00 UK Tracker A Acc 209.20 - 2.00 3.05
Managed Growth (Life) 483.60 509.10 -3.20 - FCA Recognised Global Opportunities I GBP £ 1.05 - 0.00 1.93 Authorised Inv Funds
Open World A-Acc £ 1.16 - 0.00 0.00
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Gbl Listed Infrastructure I $ 9.3717 - 0.0001 - US Growth A Acc 753.50 - 5.30 0.00
Managed (Pensions) 6102.10 6423.30 -35.40 - Capital Gearing Portfolio Fund Plc £ 27257.82 27257.82 111.21 0.61 Global Opportunities I EUR € 1.52 - -0.01 1.98 Fundsmith Equity T Acc 224.94 - 2.84 1.12
Multi Asset Income A Gross Acc £ 1.55 - 0.00 3.49
CG Portfolio Fund Plc Gbl Listed Infrastructure IX $ 9.4124 - 0.0001 -
Managed Growth (Pensions) 586.20 617.00 -4.70 - Global Opportunities A GBP £ 0.98 - -0.01 1.46 Fundsmith Equity T Inc 211.77 - 2.67 1.13
Real Return Cls A £ 172.10 172.10 2.80 1.74 Multi Asset Income A Gross Inc £ 1.07 - 0.00 5.01
additional fund prices can be found on our website Gbl RealEstate Sec. I $ 10.4469 - -0.0038 1.40

AXIOM
Pan European Opportunities I EUR € 1.40 - -0.01 -
Dollar Fund Cls D £ 134.29 134.29 2.54 1.62 Multi Asset Income A Net Acc £ 1.46 - 0.00 3.50
Gbl RealEstate Sec. IX $ 12.4384 - -0.0044 0.00
GYS Investment Management Ltd (GSY)
ALTERNATIVE INVESTMENTS Capital Value Fund Cls V £ 132.04 132.04 0.47 0.27 Multi Asset Income A Net Inc £ 1.07 - 0.00 5.01 Regulated

South East Asia £ 7.67 - 0.07 0.12 Taurus Emerging Fund Ltd $ 161.34 164.63 -8.88 0.00
Consistent Unit Tst Mgt Co Ltd (1200)F (UK)
PO BOX 10117, Chelmsford, Essex, CM1 9JB Special Situations £ 30.02 - 0.23 0.77
Axiom Alternative Investments (FRA) Dealing & Client Services 0845 0264281 Hermes Investment Funds Plc (IRL)
1 Conduit Street - 4th floor - London W1S 2XA Authorised Inv Funds Sterling Core Plus Red Dur £ 10.04 - 0.00 - Generali International Limited Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
www.axiom-ai.com Tel: +44 330 822 0374 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 FCA Recognised
Consistent UT Inc 51.62 52.23 0.37 4.85
Algebris Investments (IRL) Regulated Strategic Bond £ 0.31 - 0.00 2.83 International Insurances Hermes Abs Return Credit Fund Class F Acc £ £ 1.05 1.05 0.00 -

Asset Management
Regulated EFG Hermes
Axiom Contingent Capital € 1023.65 - -1.31 - Consistent UT Acc 120.31 121.74 0.85 4.70 Global Multi-Strategy Managed $ 4.63 4.99 -0.13 0.00

Asset Manageme
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Strategic Bond Gross £ 0.31 - 0.00 2.83 Hermes Abs Return Credit Fund Class R Acc € € 2.01 2.01 0.01 -
Algebris Financial Credit Fund - Class I EUR € 132.69 - 0.46 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Axiom Contingent Capital £ 1028.26 - -1.31 - Practical Investment Inc 196.38 201.93 0.72 3.99 UK Multi-Strategy Managed £ 4.79 5.16 -0.10 0.00
Canada Life Investments (UK) Other International Funds Target 2015 £ 0.50 - 0.00 0.38 Hermes Active UK Inflation Fund Class F Acc £ 1.28 1.28 0.00 0.00
Algebris Financial Income Fund - Class I EUR € 113.73 - -0.21 0.00
Axiom Equity $ 801.55 - 0.69 - 1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180 Practical Investment Acc 958.96 986.08 3.50 3.88 EU Multi-Strategy Managed € 2.99 3.23 -0.07 0.00
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Target 2020 £ 0.55 - 0.00 0.52 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.49 1.49 0.01 0.00
Algebris Financial Equity Fund - Class B EUR € 90.94 - -0.52 - Authorised Inv Funds
Axiom Equity € 842.02 - 0.62 0.00 Global Bond USD $ 3.42 3.68 -0.01 0.00
Asia Pacific B Acc 729.77 - 4.27 1.13 EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - - Target 2025 £ 1.28 - 0.00 0.32 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.15 3.15 0.00 0.00
Algebris Asset Allocation Fund - Class B EUR € 96.97 - -0.22 -
Axiom Obligataire $ 1767.58 - -2.01 0.00
Balanced B Acc 145.14 - 1.00 1.46 EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - - Target 2030 £ 1.37 - 0.00 0.40 Hermes Global Emerging Markets Fund Class F Acc £ 1.11 1.11 0.01 0.00
Axiom Obligataire € 1763.01 - -2.17 0.00 Genesis Asset Managers LLP
Corporate Bond B Inc 205.62 - -0.13 4.07 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 UK Select £ 2.37 - 0.02 0.86 Hermes Global Emerging Markets Fund Class R Acc € 2.72 2.72 0.01 0.00
Alken Asset Management (LUX) Other International Funds
Axiom Obligataire £ 1775.70 - -2.06 0.00
61 Conduit Street, London, W1S 2GB European B Acc 248.32 - 4.73 1.57 Saudi Arabia Equity Fund SR 12.39 - -0.43 0.00 UK Growth £ 3.49 - 0.02 0.00 Hermes Global Equity Fund Class F Acc £ 1.47 1.47 0.02 0.00
Emerging Mkts NAV £ 4.79 - -0.08 0.00
www.alken-am.com
Regulated Global Bond B Inc 94.42 - 0.37 2.92 UK Smaller Companies £ 2.12 - 0.00 0.18 Hermes Global Equity Fund Class R Acc € 3.74 3.74 0.01 0.00
Crèdit Andorrà Asset Management (LUX)
Asset Management
Alken European Opportunities € 196.21 - -1.54 0.00 BLME Asset Management (LUX)
Global Equity B Acc 583.85 - 4.05 1.10 Electric & General (1000)F (UK) WealthBuilder A Acc £ 0.99 - 0.00 0.47
BLME Sharia'a Umbrella Fund SICAV SIF www.creditandorra.com Guardian (UK) Hermes Global ESG Equity Fund Class F Acc £ 1.13 1.13 0.00 0.00
Stuart House St.John's Street Peterborough PE1 5DD
Alken European Opportunities £ 117.25 - -1.42 0.00 Regulated FCA Recognised Fidelity PathFinder Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151
Global Equity Income B Inc 118.82 - 1.18 3.93 Orders & Enquiries: 0845 850 0255 Hermes Global High Yield Bond Fund Class F Acc £ 1.06 1.06 -0.01 0.00
Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.09 - 0.00 - Insurances
Income Fund - Share Class A Acc $ 1134.35 - -0.05 0.00 Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 0.00 Authorised Inv Funds
Alken Absolute Return € 139.44 - -0.85 0.00 Global High Yield Bond B Inc 90.69 - -0.21 5.14 Guardian Assurance Hermes Global High Yield Bond Fund Class R Acc € 2.71 2.71 0.00 0.00
Authorised Corporate Director - Carvetian Capital Management
Income Fund - Share Class G Acc £ 1074.98 - -0.05 0.00 Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00 Fidelity PathFinder Foundation 1 Acc (clean) £ 1.08 - 0.00 -
Alken Absolute Return £ 113.25 - -0.67 0.00 Global Infrastructure B Acc 107.75 - 0.88 0.93 Equity S-GH Class B £ 11.54 - 0.10 -
Electric&General Net Income A 144.80 - 1.30 1.94 Hermes Global Small Cap Fund Class F Acc £ £ 0.96 0.96 0.01 -
Gl Sukuk Fund - Share Class A Acc $ 1221.28 - -1.53 0.00 Crediinvest SICAV Fixed Income Eur € 10.47 - -0.02 0.00 Fidelity PathFinder Foundation 2 Acc (clean) £ 1.07 - 0.01 -
Alken Small Cap € 180.47 - -0.95 0.00 Global Resource B Acc 62.57 - -1.78 0.97 Managed Fund Bond £ 22.70 23.64 -0.10 -
Hermes Global Small Cap Fund Class R Acc € € 1.83 1.83 0.01 -
Gl Sukuk Fund - Share class B Acc £ 1090.09 1090.09 -1.36 0.00 Crediinvest SICAV Fixed Income Usd $ 10.35 - -0.02 0.00 Fidelity PathFinder Foundation 3 Acc (clean) £ 1.05 - 0.01 -
Japan B Acc 50.03 - -1.07 0.92 Choices Wth-Pfts Lg-tm 321.30 338.20 0.00 -
Ennismore Smaller Cos Plc (IRL) Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.96 0.96 0.00 0.00
Crediinvest SICAV Spanish Value € 231.15 - -2.49 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 Fidelity PathFinder Foundation 4 Acc (clean) £ 1.06 - 0.01 -
Amundi Funds (LUX) Portfolio III B Acc 107.32 - 0.25 2.32 Choices Wth-Pfts St-tm 272.10 286.40 0.10 -
FCA Recognised Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.01 1.01 0.00 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Crediinvest SICAV International Value € 193.84 - -1.98 0.00 Fidelity PathFinder Foundation 5 Acc (clean) £ 1.15 - 0.01 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Choices Managed 594.17 625.45 -3.40 -
www.amundi-funds.com Portfolio IV B Acc 108.67 - 0.30 2.36 Ennismore European Smlr Cos NAV £ 102.80 - -0.19 0.00 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.28 1.28 0.02 0.00
Regulated
FCA Recognised Crediinvest SICAV Big Cap Value € 14.25 - -0.16 0.00 Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.10 - 0.01 -
Portfolio V B Acc 107.57 - 0.42 1.56 Ennismore European Smlr Cos NAV € 137.64 - 0.34 0.00 Choices Equity 645.42 679.39 -4.49 -
Global Liquidity USD $ 1.00 - 0.00 0.51 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.24 1.24 0.02 1.30
Bd. Euro Corporate AE Class - R - EUR € 18.42 - -0.03 0.00 Crediinvest SICAV US American Value $ 16.99 - 0.06 0.00 Fidelity PathFinder Focussed 1 Acc (clean) £ 1.09 - 0.00 -
Portfolio VI B Acc 105.07 - 0.54 1.60 Freedom With Pfts Long-Tm 220.30 231.90 0.00 -
Hermes Sourcecap EU Alpha Fund Class R Acc € 3.01 3.01 0.04 0.00
Bd. Global AU Class - R - USD $ 25.28 - -0.09 0.00 Crediinvest SICAV Sustainability € 14.53 - -0.15 0.00 Fidelity PathFinder Focused 2 Acc (Clean) £ 1.10 - 0.01 -
Freedom With Pfts Short-Tm 197.90 208.40 0.00 -
Barclays Investment Funds (CI) Ltd (JER) Portfolio VII B Acc 100.67 - 0.64 1.58 Ennismore European Smlr Cos Hedge Fd Hermes Sourcecap EX UK Fund Class F Acc £ 1.36 1.36 0.03 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Other International Funds Fidelity PathFinder Focussed 3 Acc (clean) £ 1.08 - 0.00 -
North American B Acc 830.25 - 4.31 0.72 Freedom Managed 348.57 366.92 -1.55 -
FCA Recognised Hermes Sourcecap EX UK Fund Class R Acc € 3.10 3.10 0.05 0.00
Eq. Emerging World AU Class - R - USD $ 73.07 - -1.51 0.00 Daiwa SB Investments (UK) Ltd (LUX) NAV € 496.00 - 10.70 0.00 Fidelity PathFinder Focussed 4 Acc (clean) £ 1.09 - 0.00 -
Bond Funds Strategic Return B Acc 94.12 - -0.72 0.00 Freedom Equity 382.99 403.15 -2.16 -
5 King William Street, London EC4N 7DA Hermes UK Small & Mid Cap Fund Class F Acc £ 1.68 1.68 0.01 0.00
Eq. Greater China AU Class - R - USD $ 498.63 - -12.73 0.00 Sterling Bond F £ 0.45 - -0.01 3.34 Fidelity PathFinder Focussed 5 Acc (clean) £ 1.12 - 0.00 -
www.daiwasbi.co.uk 0207 597 7000 Corp Pens Mananged 209.76 209.76 -1.20 -
Total Return B Acc 95.16 - -0.60 3.07 Hermes UK Small & Mid Cap Fund Class R Acc € 4.89 4.89 -0.02 0.00
Eq. Latin America AU Class - R - USD $ 279.38 - -1.30 0.00 Regulated Equinox Fund Mgmt (Guernsey) Limited (GSY) Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.06 - -0.01 -
UK Equity B Acc 107.00 - 1.16 1.66 Regulated Corp Pens Equity 210.72 210.72 -1.47 -
DSBI Japan Equity Fundamental Active I JPY ¥ 11305.70 11305.70 -346.99 0.00 Hermes US All Cap Equity Class F Stg £ Acc £ 0.97 0.97 0.01 -
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.49 - -0.07 0.00 Baring Fund Managers Ltd (1200)F (UK) Fidelity PathFinder Freedom 2 Acc (clean) £ 1.04 - -0.01 -
UK Equity & Bond Income B Inc 232.91 - 2.29 5.01 Equinox Russian Opportunities Fund Limited $ 119.68 - 0.92 0.00 Corp Pens Fixed Interest 299.30 299.30 0.19 -
Dealing and Enquiries 020 7214 1004 DSBI Japan Equity Fundamental Active I GBP £ 111.64 111.64 -3.78 0.00 Hermes US All Cap Equity Class R € Acc € 1.84 1.84 0.00 -
Fidelity PathFinder Freedom 1 Acc (clean) £ 1.06 - 0.00 -
Fund Information: www.barings.com Corp Pens Index Linked 334.16 334.16 -2.94 -
UK Equity Income B Inc 416.95 - 5.02 4.94 DSBI Japan Equity Fundamental Active A EUR € 107.24 112.60 -3.49 0.00 Hermes US SMID Equity Fund Class F Acc £ 1.55 1.55 0.01 0.00
The Antares European Fund Limited Authorised Inv Funds Fidelity PathFinder Freedom 3 Acc (clean) £ 1.03 - 0.00 -
Other International UK Government Bond B Inc 47.34 - 0.01 1.98 Euronova Asset Management UK LLP (CYM) Corp Pens Deposit 191.09 191.09 0.01 -
Multi Asset A Acc ... C 150.00 - -0.80 1.51 Hermes US SMID Equity Fund Class R Acc € 3.22 3.22 0.01 0.00
Regulated Fidelity PathFinder Freedom 4 Acc (clean) £ 1.00 - -0.01 -
AEF Ltd Usd (Est) $ 681.65 - 0.02 - Corp Pens Protector 361.76 361.76 0.01 -
Multi Asset A Inc ... C 143.10 - -0.70 1.28 DAVIS Funds SICAV (LUX) Smaller Cos Cls One Shares € 36.20 - 0.38 0.00
Regulated Fidelity PathFinder Freedom 5 Acc (clean) £ 1.08 - 0.00 -
AEF Ltd Eur (Est) € 683.82 - 0.00 0.00 Charity Fund Capita Asset Services (UK) Corp Pens UK Index Tracker £ 1.82 1.82 -0.02 -
Smaller Cos Cls Two Shares € 25.22 - 0.24 0.00 Hermes Property Unit Trust (UK)
Enquiries 020 7214 1763 40 Dukes Place, London EC3A 7NH Davis Value A $ 36.93 - -0.12 0.00 Fidelity PathFinder Income 1 Income (clean) £ 1.01 - 0.01 4.04 Guardian Linked Life Assurance Ltd Property & Other UK Unit Trusts
Targeted Return Fund Acc 140.70 141.40 -0.20 2.92 Order Desk and Enquiries: 0345 922 0044 Smaller Cos Cls Three Shares € 12.71 - 0.12 0.00
Davis Global A $ 25.76 - -0.27 0.00 Fidelity PathFinder Income 1 Gross Income (clean) £ 1.01 - 0.01 5.03 Managed Acc £ 17.33 18.24 -0.08 - Property £ 5.85 6.23 0.08 3.10
Arisaig Partners Authorised Inv Funds
Targeted Return Fund Inc 107.70 108.30 -0.20 2.97 Smaller Cos Cls Four Shares € 16.32 - 0.15 0.00
Other International Funds CF Heartwood Cautious B Acc X 125.45 - -0.08 0.15 Fidelity PathFinder Income 2 Income (clean) £ 1.02 - 0.01 3.60 Equity Acc £ 30.92 32.55 -0.19 -
Arisaig Africa Consumer Fund Limited $ 13.12 - -0.26 0.00
CF Heartwood Cautious Income B Inc X 107.81 - -0.04 2.43 Discretionary Unit Fund Mngrs (1000)F (UK) Fidelity PathFinder Income 2 gross £ 1.02 - 0.00 4.50 Fixed Interest Acc £ 17.15 18.05 0.01 - Hermes UK Residential Real Estate (UK)
Arisaig Asia Consumer Fund Limited $ 60.57 - -1.54 0.00 1 Poultry, London EC2R 8JR 020 7 415 4130 Property & Other UK Unit Trusts
Baring International Fd Mgrs (Ireland) (IRL) CF Heartwood Growth B Acc X 138.16 - -0.14 0.69 Fidelity PathFinder Income 2 Gross Income (clean) £ 1.02 - 0.01 4.48 International Acc £ 12.79 13.47 -0.10 -
Authorised Inv Funds
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 VISTA UK Residential Real Estate £ 1.02 1.06 0.03 -
Arisaig Global Emerging Markets Consumer UCITS € 11.20 - -0.17 0.00
FCA Recognised CF Heartwood Balanced Income B Inc X 108.00 - -0.04 3.00 Disc Inc 1623.36 1730.08 2.02 0.00 Fidelity PathFinder Income 3 Income (clean) £ 1.02 - 0.00 4.14 International S-NA Acc £ 6.57 6.92 -0.05 -
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.69 - -0.19 0.00 ASEAN Frontiers A GBP Inc £ 109.66 - 3.48 0.58 Institutional OEIC Funds
CF Heartwood Balanced B Acc X 120.98 - -0.08 0.31 Do Accum 6116.98 6519.10 7.62 0.00 International S-PA Acc £ 3.97 4.18 -0.03 -
America £ 3.90 - 0.04 0.52 INDIA VALUE INVESTMENTS LIMITED (INVIL)
Arisaig Latin America Consumer Fund $ 18.86 - -0.13 0.00 Asia Growth A GBP Inc H £ 44.06 - 0.43 0.00
CF Heartwood Defensive Multi Asset Fund B Accumulation 108.32 - -0.02 0.00 International S-EU Acc £ 3.20 3.37 -0.02 - www.invil.mu
Australia A GBP Inc £ 67.86 - 1.61 1.82 Eurobank Fund Management Company (Luxembourg) S.A. Emerging Markets £ 2.97 - 0.03 0.81 Other International Funds
CF Richmond Core X 165.05 - 0.74 0.00 Regulated Managed S-PR Acc £ 6.58 6.93 -0.03 -
NAV £ 8.18 - 0.00 0.00
Baring China Bond Fund $ 9.72 - 0.03 0.00 Europe £ 4.03 - 0.07 1.54
CF Seneca Diversified Growth A ACC 214.14 - 0.16 1.45 (LF) Absolute Return € 1.31 - -0.01 0.00 Fixed Interest S-IL Acc £ 6.48 6.82 0.01 -
Baring Emerging Markets Corporate Debt Fund $ 9.10 - -0.01 0.00 Fidelity Pre-Retirement Bond Fund £ 118.10 - -0.20 3.06
CF Seneca Diversified Growth B ACC 126.80 - 0.09 2.40 (LF) Eq Emerging Europe € 0.63 - -0.01 0.00 Deposit Accum £ 4.44 4.67 0.00 -
Global Focus £ 2.78 - 0.03 1.60
Intrinsic Value Investors (IVI) LLP (IRL)
Baring European Opportunities Fund Class A EUR Acc € 13.20 - 0.17 0.00 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Guardian Pensions Management Ltd 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
CF Seneca Diversified Growth N ACC 125.51 - 0.09 2.08
Index Linked Bond £ 2.60 - 0.01 0.74 Pens. Managed Acc. £ 22.44 23.62 -0.13 - FCA Recognised
Baring Global Mining Fund - Class A GBP Inc £ 3.21 - -0.07 0.65 Dodge & Cox Worldwide Funds (IRL) (LF) Eq Mena Fund € 12.31 - -0.05 0.00
CF Seneca Diversified Income A INC 85.99 - -0.01 6.12
6 Duke Street,St.James,London SW1Y 6BN IVI European Fund EUR € 16.76 - -0.06 0.00
Artemis Fund Managers Ltd (1200)F (UK) Dynamic Emerging Markets A GBP Acc F £ 8.30 - 0.00 0.00 Index Linked Bond Gross £ 3.15 - 0.01 0.74 Pens. Equity Acc. £ 32.51 34.22 -0.22 -
CF Seneca Diversified Income B INC 102.09 - -0.01 6.13 www.dodgeandcox.worldwide.com 020 3713 7664 (LF) Greek Government Bond € 17.92 - 0.35 -
57 St. James's Street, London SW1A 1LD 0800 092 2051 IVI European Fund GBP £ 16.87 - -0.13 0.67
Authorised Inv Funds Eastern Europe A GBP Inc £ 37.45 - 0.07 1.84 FCA Recognised Index-Linked Bond Fund Gross Inc £ 12.26 - 0.06 0.74
CF Seneca Diversified Income N INC 101.08 - -0.01 6.13 (LF) Greek Corporate Bond € 11.92 - 0.04 -
Dodge & Cox Worldwide Funds plc - Global Bond Fund
Artemis Capital R ACC 1249.07 1319.80 21.35 1.24 Emerging Mkt Debt LC A GBP Hedged Inc £ 6.75 - -0.03 6.72 Japan £ 2.04 - 0.02 0.79 HPB Assurance Ltd
Investment Adviser - DSM Capital Partners EUR Accumulating Class € 11.60 - 0.04 0.00 (LF) FOF Dynamic Fixed Inc € 11.69 - -0.02 0.00
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
Artemis European Growth R Acc 243.46 256.91 5.01 1.17 Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00 The Westchester X $ 25.87 - -0.14 0.00 Long Bond £ 0.50 - 0.00 2.91
EUR Accumulating Class (H) € 9.00 - -0.03 0.00 (LF) FOF Real Estate € 16.30 - -0.09 0.00 International Insurances
Artemis European Opps R Acc 74.09 78.20 1.60 0.80 Glb Emerging Markets A GBP Inc H £ 17.42 - 0.08 0.00 The Westchester Class 1 GBP Acc £ 19.42 - 0.08 0.00 Long Bond Gross £ 0.83 - 0.00 2.85 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
EUR Distributing Class € 10.99 - 0.04 3.62
Artemis Global Emg Mkts I GBP Acc 77.10 - 1.05 - Glb Resources A GBP Inc H £ 9.86 - -0.02 0.38 The Westchester Class 2 GBP Acc £ 19.47 - 0.09 0.00 Long Bond Fund Gross Inc £ 11.20 - 0.00 2.91 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
EUR Distributing Class (H) € 8.52 - -0.02 3.71
Artemis Global Emg Mkts I GBP Dist 77.10 - 1.05 - Investment Adviser - Morant Wright Management Limited Pacific (Ex Japan) £ 3.32 - 0.02 1.85
High Yield Bond A GBP Hedged Inc H £ 6.07 - -0.01 7.21 GBP Distributing Class £ 9.98 - -0.03 3.57
CF Morant Wright Japan A X 272.29 - -6.51 0.00 Invesco Fund Managers Ltd (UK)
Artemis Global Energy R Acc 19.14 20.39 -0.26 0.00 Hong Kong China A GBP Inc £ 541.97 - 5.90 0.58 Pan European £ 2.57 - 0.04 2.04 Hargreaves Lansdown Fd Mgrs (1100)F (UK)
GBP Distributing Class (H) £ 8.60 - -0.02 3.71 Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
CF Morant Wright Japan A Inc X 268.29 - -6.41 0.00 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT Dealing: 0800 085 8571
Artemis Global Growth R Acc 175.46 185.12 1.99 0.81 India Fund - Class A GBP Inc £ 14.10 - 0.01 0.00 Reduced Duration UK Corporate Bond £ 10.42 - -0.01 3.58
USD Accumulating Class $ 9.08 - -0.02 0.00 Enquiries 0117 90090000 Investor Services: 0800 085 8677
CF Morant Wright Japan B X 289.90 - -6.93 0.51
Artemis Global Income R Acc 92.94 98.20 1.10 4.12 Reduced Duration UK Corporate Bond Gross £ 10.61 - -0.02 3.58 www.hl.co.uk www.invescoperpetual.co.uk
Latin America A USD Inc H $ 23.06 - 0.01 0.24 Dodge & Cox Worldwide Funds plc-Global Stock Fund FIL Investment Services (UK) Limited (1200)F (UK)
CF Morant Wright Japan B Inc X 273.37 - -6.54 0.54 Authorised Inv Funds Authorised Inv Funds
Artemis Global Income R Inc 74.84 79.08 0.89 4.29 USD Accumulating Share Class $ 14.34 - -0.07 0.00 130, Tonbridge Rd, Tonbridge TN11 9DZ Reduced Duration UK Corporate Bond Inc £ 9.73 - -0.01 3.61 Hargreaves Lansdown Funds
MENA A GBP Inc F * £ 11.34 - -0.09 0.64 INVESCO PERPETUAL Funds
CF Morant Wright Nippon Yield ACC A X 278.59 - -5.30 2.10 Callfree: Private Clients 0800 414161
Unit Trust
Artemis Global select R Acc 71.02 74.93 0.30 0.00 GBP Accumulating Share Class £ 16.22 - -0.10 0.00 Broker Dealings: 0800 414 181 Reduced Duration UK Corp Bond Gross Inc £ 9.73 - -0.01 3.61 Asian Acc ♦ F 406.38 - 0.48 0.60
CF Morant Wright Nippon Yield ACC B X 289.05 - -5.50 2.09 Authorised Inv Funds HL Multi-Manager Special Situations Trust A Acc 263.93 277.82 -0.96 0.52
Artemis High Income R Inc 76.80 81.88 -0.04 5.90 GBP Distributing Share class £ 11.80 - -0.07 0.98 Select Emerging Markets Equities £ 1.08 - 0.01 1.66 Asian Inc ♦ F 363.01 - 0.43 0.60
Baring International Fd Mgrs (Ireland) (IRL) Unit Trust
CF Morant Wright Nippon Yield Fund A Inc X 242.16 - -4.61 2.14 HL Multi-Manager Special Situations Trust M Acc 263.93 277.82 -0.95 0.42
Regulated EUR Accumulating Share Class € 19.85 - 0.03 0.00 Cash Accum Units 186.43 186.43 0.00 0.00 Asian Equity Income Acc ♦ F 52.95 - 0.36 4.92
Artemis Income R Inc 197.00 208.79 1.89 4.26 Select European Eqts £ 1.73 - 0.01 1.88
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 CF Morant Wright Nippon Yield Fund B Inc X 251.34 - -4.78 2.13 HL Multi-Manager Income & Growth Trust A Acc 159.87 168.20 -0.97 3.83
Dodge & Cox Worldwide Funds plc-International Stock Fund Cash Fund £ 1.00 1.00 0.00 0.15 Asian Equity Income Inc ♦ F 44.02 - 0.29 5.08
Artemis Income R Acc 335.95 356.06 3.21 4.14 Select Global Equities £ 2.93 - 0.03 1.10
USD Accumulating Share Class $ 12.09 - -0.05 0.00 HL Multi-Manager Income & Growth Trust M Acc 159.88 168.19 -0.97 1.79
Artemis Monthly Dist R Inc 61.61 65.41 0.35 4.51 Gross Accum Cash £ 1.28 1.28 0.00 0.00 South East Asia £ 3.39 - 0.02 1.99 Balanced Risk 6 Acc 50.12 - -0.21 0.00
Barings (Luxembourg) (LUX) Cavendish Asset Management Limited (1200)F (UK) EUR Accumulating Share Class € 13.12 - 0.03 0.00 HL Multi-Manager Income & Growth Trust A Inc 95.56 100.54 -0.58 3.91
Artemis Pan-Euro Abs Ret GBP 111.68 - 0.20 - MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.15 Sterling Core Plus Bond Gr Accum £ 2.07 - 0.00 3.46 Balanced Risk 8 Acc 50.73 - -0.29 0.00
FCA Recognised Chelsea House, Westgate, London W5 1DR Dodge & Cox Worldwide Funds plc-U.S. Stock Fund HL Multi-Manager Income & Growth Trust M Inc 95.56 100.54 -0.58 1.81
Russia A GBP Inc F £ 22.81 - -1.47 0.00 IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 MoneyBuilder Global £ 2.54 2.54 0.01 0.19 Balanced Risk 10 Acc 51.29 - -0.37 0.13
Artemis Strategic Assets R Acc 70.94 75.12 -0.11 0.00 Sterling Core Plus Bond Inc £ 1.33 - 0.00 3.56
Asset Management
Authorised Inv Funds USD Accumulating Share Class $ 16.60 - -0.02 0.00
HL Multi-Manager Balanced Managed Trust A Acc 180.00 189.33 -0.70 1.10
OEIC Funds Childrens Acc ♦ F 378.10 - 3.90 1.81
Artemis Strategic Bond R M Acc 82.98 88.17 -0.15 4.05 Cavendish Opportunities Fund B Class 1030.00 - 1.00 1.66 GBP Accumulating Share Class £ 17.75 - -0.05 0.00 UK £ 3.51 - 0.04 2.23
American £ 26.08 - 0.20 0.00 HL Multi-Manager Balanced Managed Trust M Acc 180.00 189.33 -0.70 0.71
Artemis Strategic Bond R M Inc 53.24 56.56 -0.09 4.13 BlackRock (JER) Cavendish Opportunities Fund A Class 1024.00 - 1.00 0.82 GBP Distributing Share Class £ 11.29 - -0.03 0.61 UK Aggreg Bond Gr Accum £ 1.82 - 0.00 4.63 Corporate Bd Acc (Gross) ♦ F 207.43 - -0.14 3.52
Regulated American Special Sits £ 11.41 - 0.13 0.00 HL Multi-Manager Equity & Bond Trust A Inc 106.66 112.11 -0.34 2.25
Artemis Strategic Bond R Q Acc 83.07 88.25 -0.14 4.13 UK Aggregate Bond Inc £ 1.21 - 0.00 3.18 Corporate Bd Inc (Gross) ♦ F 88.15 - -0.05 3.62
BlackRock UK Property £ 41.67 - 0.46 3.26 Cavendish Opportunities Fund C Acc 1072.00xd - 1.00 1.48 EUR Accumulating Share Class € 19.84 - 0.10 0.00
30
Fund Bid Offer +/- Yield
Corporate Bond Acc ♦ F 184.42 - -0.12 3.54
Corporate Bond Inc ♦ F 87.97 - -0.06 3.62
Distribution Acc ♦ F 107.06 - 0.54 4.59
Distribution Acc (Gross) ♦ F 122.74 - 0.62 4.56
Distribution Inc ♦ F 62.01 - 0.32 4.68
Distribution Inc (Gross) ♦ F 62.01 - 0.31 4.68
Emerging European Acc ♦ F 30.83 - 0.15 3.04
Emerging European Inc ♦ F 28.11 - 0.14 3.12
European Equity Acc ♦ F 813.33 - 15.02 1.53
European Equity Inc ♦ F 678.64 - 12.53 1.55
European Equity Income Acc ♦ F 71.08 - 1.36 3.48
European Equity Income Inc ♦ F 54.04 - 1.04 3.56
European High Income Acc ♦ F 80.19 - 0.89 3.47
European High Income Inc ♦ F 57.94 - 0.64 3.53
European Opportunities Inc ♦ F 81.68 - 0.79 1.09
European Opportunities Acc ♦ F 84.49 - 0.82 1.08
European Smlr Cos Acc ♦ F 189.96 - 1.44 0.22
Global Bd Acc (Gross) ♦ F 133.81 - 0.43 1.16
Global Bd Inc (Gross) ♦ F 82.39 - 0.26 1.17
Global Bond Acc ♦ F 125.69 - 0.40 1.17
Global Bond Inc ♦ F 82.33 - 0.26 1.17
Glbl Distribution Acc 51.55 - 0.09 5.00
Glbl Distribution Acc (Gross) 52.30 - 0.10 5.00
Glbl Distribution Inc 48.69 - 0.08 5.02
Glbl Distribution Inc (Gross) 48.70 - 0.09 5.02
Global Emerging Markets Acc ♦ F 220.37 - 0.88 1.00
Global Emerging Markets Inc ♦ F 198.73 - 0.80 1.01
Global Equity (acc) ♦ F 451.28 - 5.12 0.64
Global Equity (inc) ♦ F 409.11 - 4.64 0.64
Global Equity Income Acc ♦ F 117.13 - 1.63 3.60
Global Equity Income Inc ♦ F 95.13 - 1.33 3.71
Gbl Financial Capital Acc 86.97 - 0.11 4.29
Gbl Financial Capital Inc 73.18 - 0.09 4.42
Gbl Financial Cap Acc Gross 91.12 - 0.12 4.80
Gbl Financial Cap Inc Gross 73.44 - 0.10 4.98
Global Opportunities Acc ♦ F 89.42 - 1.24 0.48
Global Smaller Cos Acc ♦ F 1623.89 - 11.22 0.20
Global Smaller Cos Inc ♦ F 1550.63 - 10.72 0.20
Global Targeted Rets Acc 56.93 - 0.57 0.32
High Income Acc ♦ F 819.88 - 9.40 3.32
High Income Inc ♦ F 446.05 - 5.12 3.40
High Yield Fund Acc 104.21 - 0.02 5.30
High Yield Fund Acc (Gross) 121.81 - 0.02 5.27
High Yield Fund Inc 41.23 - 0.01 5.44
High Yield Fund Inc (Gross) 41.34 - 0.01 5.44
Hong Kong & China Acc ♦ F 433.09 - -1.04 0.78
Income & Growth Acc ♦ F 926.95 - 10.70 4.07
Income & Growth Inc ♦ F 395.59 - 4.56 4.19
Income Acc ♦ F 3144.66 - 33.33 3.17
Income Inc ♦ F 1748.88 - 18.53 3.24
Japan Acc ♦ F 309.64 - -6.60 0.29
Japanese Smlr Cos Acc ♦ F 66.87 - -2.16 0.00
Latin America Acc ♦ F 90.99 - 0.16 1.22
Latin America Inc ♦ F 75.74 - 0.13 1.23
Managed Growth Acc ♦ F 154.06 - 0.84 0.71
Managed Growth Inc ♦ F 128.26 - 0.70 0.72
Managed Income Acc ♦ F 155.31 - 0.77 2.95
Managed Income Inc ♦ F 94.64 - 0.46 3.00
Money Acc ♦ F 90.24 - 0.00 0.21
Money Acc (Gross) ♦ F 95.37 - -0.01 0.21
Monthly Income Plus Acc ♦ F 292.66 - 0.65 4.94
Monthly Income Plus Acc (Gross) ♦ F 344.69 - 0.78 4.92
Monthly Income Plus Inc ♦ F 107.12 - 0.24 5.05
Monthly Income Plus Inc (Gross) ♦ F 107.27 - 0.24 5.05
Pacific Acc ♦ F 934.04 - -7.53 0.40
Pacific Inc ♦ F 854.75 - -6.88 0.41
Tactical Bond Acc ♦ F 68.68 - 0.07 0.82
Tactical Bond Inc ♦ F 59.55 - 0.06 0.82
Tactical Bond Acc (Gross) ♦ F 71.27 - 0.07 0.82
Tactical Bond Inc (Gross) ♦ F 59.61 - 0.06 0.82
UK Focus Acc F 188.75 - 2.07 1.86
UK Focus Inc F 154.21 - 1.69 1.89
UK Growth Acc ♦ F 516.39 - 5.12 1.89
UK Growth Inc ♦ F 320.80 - 3.19 1.92
UK Smaller Cos Equity Acc ♦ F 878.84 - 3.40 0.76
UK Smaller Cos Equity Inc ♦ F 673.00 - 2.60 0.76
UK Strategic Income Acc ♦ F 183.38 - 0.84 3.54
UK Strategic Income Inc ♦ F 135.10 - 0.62 3.63
US Equity Acc ♦ F 506.34 - 2.55 0.00
Invesco Perpetual Funds (No Trail)
Asian (No Trail) Acc ♦ F 170.44 - 0.20 1.18
Asian (No Trail) Inc ♦ F 153.32 - 0.18 1.19
Asian Equity Income (No Trail) Acc ♦ F 108.49 - 0.74 4.91
Asian Equity Income (No Trail) Inc 90.21 - 0.61 5.07
Balanced Risk 6 No Trail Acc 102.17 - -0.42 0.16
Balanced Risk 8 No Trail Acc 103.40 - -0.59 0.44
Balanced Risk 10 No Trail Acc 104.56 - -0.75 0.60
Corporate Bond (No Trail) Acc ♦ F 164.18 - -0.11 3.79
Corporate Bond (No Trail) Inc ♦ F 116.30 - -0.08 3.87
Distribution (No Trail) Acc ♦ F 164.39 - 0.83 4.57
Distribution (No Trail) Inc ♦ F 108.39 - 0.55 4.66
Emerging European (No Trail) Acc ♦ F 64.20 - 0.33 3.64
Emerging European (No Trail) Inc ♦ F 56.73 - 0.28 3.76
European Equity (No Trail) Acc ♦ F 143.73 - 2.66 2.07
European Equity (No Trail) Inc ♦ F 119.12 - 2.20 2.12
European Equity Income (No Trail) Acc ♦ F 146.55 - 2.81 3.47
European Equity Income (No Trail) Inc ♦ F 111.45 - 2.14 3.56
European High Income (No Trail) Acc ♦ F 165.33 - 1.84 3.46
European High Income (No Trail) Inc ♦ F 119.46 - 1.33 3.52
European Opportunities (No Trail) Acc ♦ F 177.04 - 1.73 1.60
European Opportunities (No Trail) Inc ♦ F 165.51 - 1.61 1.62
European Smaller Companies (No Trail) Acc ♦ F 233.49 - 1.78 0.71
Global Balanced Index (No Trail) Acc ♦ F 154.04 - 0.91 2.04
Global Bond (No Trail) Acc ♦ F 141.29 - 0.45 1.41
Global Bond (No Trail) Inc ♦ F 127.74 - 0.41 1.42
Glbl Distribution Acc (No Trail) 103.95 - 0.19 3.97
Glbl Distribution Inc (No Trail) 98.19 - 0.18 4.04
Gbl Emerging Markets (No Trail) Acc ♦ F 144.56 - 0.58 1.60
Gbl Emerging Markets (No Trail) Inc ♦ F 134.32 - 0.54 1.63
Global Equity (No Trail) acc ♦ F 199.38 - 2.27 1.19
Global Equity (No Trail) inc ♦ F 184.47 - 2.10 1.21
Global Equity Income (No Trail ) Acc ♦ F 242.51 - 3.40 3.59
Global Equity Income (No Trail) Inc ♦ F 196.96 - 2.76 3.70
Global ex UK Core Equity Index ( No Trail) Acc ♦ F 169.87 - 1.11 1.54
Global ex UK Enhanced Index ( No Trail) Acc ♦ F 196.30 - 1.60 2.04
Gbl Fin Cap No Trail Acc 177.38 - 0.22 4.28
Gbl Fin Cap No Trail Inc 149.29 - 0.19 4.41
Global Opportunities (No Trail) Acc ♦ F 230.30 - 3.20 1.03
Global Smaller Companies (No Trail) Acc ♦ F 237.44 - 1.64 0.75
Global Smaller Companies (No Trail) Inc ♦ F 226.88 - 1.57 0.75
Global Targeted Rets (No Trail) Acc 115.10 - 1.16 0.85
High Income (No Trail) Acc ♦ F 175.46 - 2.01 3.30
High Income (No Trail) Inc ♦ F 127.23 - 1.46 3.38
High Yield Fund (No Trail) Acc 216.15 - 0.05 5.28
High Yield Fund (No Trail) Inc 159.31 - 0.03 5.43
Hong Kong & China (No Trail) Acc ♦ F 171.90 - -0.41 1.34
Fund Bid Offer +/- Yield
Income & Growth (No Trail) Acc ♦ F 218.40 - 2.52 4.05
Income & Growth (No Trail) Inc ♦ F 170.07 - 1.96 4.17
Income (No Trail) Acc ♦ F 172.95 - 1.84 3.16
Income (No Trail) Inc ♦ F 126.62 - 1.35 3.23
Japan (No Trail) Acc ♦ F 147.25 - -3.14 0.83
Japanese Smaller Companies (No Trail) Acc ♦ F 170.49 - -5.50 0.00
Latin American (No Trail) Acc ♦ F 88.05 - 0.15 1.97
Latin American (No Trail) Inc ♦ F 79.08 - 0.15 2.01
Managed Growth (No Trail) Acc ♦ F 186.93 - 1.03 1.23
Managed Growth (No Trail) Inc ♦ F 171.91 - 0.95 1.25
Managed Income (No Trail) Acc ♦ F 186.26 - 0.92 2.93
Managed Income (No Trail) Inc ♦ F 152.23 - 0.76 2.99
Monthly Income Plus (No Trail) Acc ♦ F 168.95 - 0.38 4.93
Monthly Income Plus (No Trail) Inc ♦ F 105.67 - 0.24 5.04
Pacific (No Trail) Acc ♦ F 173.42 - -1.39 0.92
Pacific (No Trail) Inc ♦ F 163.15 - -1.31 1.03
Tactical Bond (No Trail) Acc ♦ F 140.67 - 0.15 1.32
Tactical Bond (No Trail) Inc ♦ F 119.25 - 0.12 1.33
UK Focus (No Trail) Acc F 155.41 - 1.70 2.41
UK Focus (No Trail) Inc F 127.59 - 1.39 2.46
UK Enhanced Index (No Trail) Acc ♦ F 380.42 - 2.69 3.66
UK Enhanced Index (No Trail) Inc ♦ F 236.94 - 1.68 3.75
UK Growth (No Trail) Acc ♦ F 136.70 - 1.36 2.42
UK Growth (No Trail) Inc ♦ F 108.93 - 1.08 2.47
UK Smaller Companies Equity (No Trail) Acc ♦ F 286.36 - 1.11 1.23
UK Smaller Companies Equity (No Trail) Inc ♦ F 264.18 - 1.03 1.25
UK Strategic Income (No Trail) Acc ♦ F 729.03 - 3.37 3.54
UK Strategic Income (No Trail) Inc ♦ F 537.14 - 2.49 3.63
US Equity (No Trail) Acc ♦ F 211.03 - 1.07 0.11
Invesco (LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A € 2.86 - 0.00 0.00
Invesco Asia Balanced A dist $ 13.30 - -0.02 3.82
Invesco Asia Consumer Demand Fund A income $ 11.41 - -0.05 0.24
Invesco Asia Infrastructure (A) $ 11.34 - 0.00 0.78
Invesco Asia Opportunities Equity A $ 93.36 - -0.59 0.00
Invesco Balanced Risk Allocation Fund A € 14.10 - -0.06 0.00
Invesco Emerging Europe Equity Fund A $ 6.82 - -0.03 0.00
Invesco Emerging Local Currencies Debt A Inc $ 6.40 - -0.03 7.11
Invesco Emerging Mkt Quant.Eq. A $ 8.10 - -0.01 0.00
Invesco Energy A $ 14.03 - -0.50 0.00
Invesco Euro Corporate Bond Fund (A) € 16.91 - -0.03 0.00
Invesco Euro Inflation Linked Bond A € 15.41 - -0.08 0.00
Invesco Euro Reserve A € 322.67 - 0.00 0.00
Invesco Euro Bond A € 7.10 - -0.02 0.00
Invesco European Growth Equity A € 23.52 - 0.17 0.00
Invesco Global Absolute Return Fund A Class € 11.77 - 0.04 0.00
Invesco Global Bond A Inc $ 5.46 - -0.02 0.75
Invesco Global Conservative Fund 90 (EUR) A € 11.80 - -0.01 0.00
Invesco Global Equity Income Fund A $ 55.20 - 0.26 0.00
Invesco Global Inc Real Estate Sec A dist $ 8.90 - 0.01 2.24
Invesco Global Inv Grd Corp Bond A Dist $ 11.82 - -0.02 3.04
Invesco Global Leisure A $ 33.98 - 0.16 0.00
Invesco Global Smaller Comp Eq Fd A $ 53.87 - 0.02 0.00
Invesco Global Structured Equity A $ 44.21 - 0.00 0.74
Invesco Global Total Ret.(EUR) Bond Fund A € 13.08 - -0.02 0.00
Invesco Gold & Precious Metals A $ 3.48 - -0.15 0.00
Invesco Greater China Equity A $ 39.05 - -0.42 0.00
Invesco India Equity A $ 49.95 - -0.43 0.00
Invesco Japanese Equity Adv Fd A ¥ 3524.00 - -104.00 0.00
Invesco Japanese Value Eq Fd A ¥ 1174.00 - -40.00 0.00
Invesco Latin American Equity A $ 5.04 - -0.04 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 957.00 - -40.00 0.00
Invesco Pan European Equity A EUR Cap NAV € 17.88 - 0.20 0.00
Invesco Pan European High Income Fd A € 13.53 - 0.00 2.48
Invesco Pan European Small Cap Equity A € 21.91 - 0.03 0.00
Invesco Pan European Structured Equity A € 16.72 - 0.19 0.00
Invesco UK Eqty Income A £ 31.45 - 0.34 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.89
Invesco US Structured Equity A $ 20.00 - 0.03 0.00
Invesco US Value Eq Fd A $ 28.49 - 0.00 0.00
Invesco USD Reserve A $ 87.02 - 0.00 0.00
Invesco Global Asset Management Ltd (IRL)
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
FCA Recognised
Invesco Stlg Bd A QD F £ 2.59 - 0.00 3.34
Invesco Asian Equity A $ 5.65 - -0.03 0.53
Invesco ASEAN Equity A $ 82.62 - 0.53 0.29
Invesco Bond A $ 26.79 - -0.08 1.99
Invesco Continental Eurp Small Cap Eqty A $ 192.30 - 1.02 0.00
Invesco Emerging Markets Equity A $ 31.69 - -0.18 0.00
Invesco Emerging Markets Bond A $ 20.24 - -0.06 4.66
Invesco Continental European Equity A € 8.25 - 0.11 0.20
Invesco Gilt A £ 15.02 - 0.00 1.39
Invesco Global Small Cap Equity A NAV $ 111.17 - -0.25 0.00
Invesco Global High Income A NAV $ 11.66 - -0.04 6.06
Invesco Gbl R/Est Secs A GBP F F £ 7.88 - 0.09 0.88
Invesco Global Health Care A $ 117.07 - -2.46 0.00
Invesco Global Select Equity A $ 12.03 - 0.02 0.00
Invesco Jap Eqty Core A $ 1.72 - -0.05 0.00
Invesco Japanese Equity A $ 17.87 - -0.61 0.00
Invesco Korean Equity A $ 32.63 - -0.19 0.00
Invesco PRC Equity A $ 44.97 - -0.54 0.00
Invesco Pacific Equity A $ 43.36 - -0.78 0.07
Invesco Global Technology A $ 14.85 - -0.04 0.00
Invesco UK Eqty A £ 7.63 - 0.07 1.38
Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds
Invest AD - Iraq Opportunity Fund $ 60.33 - -2.66 0.00
Invest AD - Emerging Africa Fund $ 877.38 - -14.22 0.00
Invest AD - GCC Focus Fund $ 1294.24 - -22.03 0.00
JPMorgan Asset Mgmt (1200)F (UK)
60 Victoria Embankment, London EC4Y 0JP
Brokerline: 0800 727 770, Clients: 0800 20 40 20
Authorised Inv Funds
JPM Retail OEIC (A class unless stated)
America Equity Acc 59.42 - 0.53 0.00
America Equity Inc 59.42 - 0.53 0.00
Asia Acc 111.90 - 0.40 0.34
Asia Inc 62.12
Asset Management
- 0.24 0.33
Cautious Managed Rt Acc 68.08 - 0.05 0.47
Cautious Managed Rt Inc 59.88 - 0.04 0.47
Diversified Real Ret Acc 49.72 - 0.00 1.08
Diversified Real Ret Inc 48.29 - -0.01 1.10
Emerging Mkts Acc 124.30 - 0.80 0.83
Emerging Mkts Inc 53.44 - 0.34 0.84
Emrg Eur Eq Acc 124.70 - 0.80 2.91
FINANCIAL TIMES Wednesday 13 January 2016
MANAGED FUNDS SERVICE
Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield
Emrg Eur Eq Inc 29.63 - 0.17 2.87 UK Equity B Acc £ 2.54 - 0.03 2.35 Marlborough Tiger Fund Ltd F £ 25.93 27.63 -0.11 0.00 UK Specialist Equity Inc £ 18.33 - -0.15 0.42 Odey Odyssey USD I $ 132.36 - -0.26 0.00
Emrg Mkts Inc Acc... C 43.44 - 0.37 5.69 UK Equity Absolute Return B Acc £ 1.25 - 0.00 0.00 MFS Investment Funds (LUX) Contl Europe Spec Equity £ 15.33 - -0.12 0.00 Odey Orion Fund EUR I € 118.32 - -0.48 0.00
FCA Recognised
Emrg Mkts Inc Inc... C 37.89 - 0.32 5.85 UK Equity Income B Acc £ 2.11 - 0.02 4.69 Marwyn Asset Management Limited (CYM) US Spec Equity Fund £ 13.46 - -0.08 0.00 Odey Swan Fund EUR I € 105.42 - 0.84 0.00
Blend.Research Gb.Eq.Fd. € 96.78 - 0.59 - Regulated
Europe Acc 1053.00 - 20.00 1.48 UK Equity Income B Inc £ 1.63 - 0.02 4.83 Japan Specialist Fund X £ 9.77 - -0.05 0.00 Odey European Absolute Return GBP S £ 101.73 - 0.10 0.00
Blend.Research Gb.Eq.Fd. £ 97.12 - 0.18 - Marwyn Value Investors £ 450.92 - -7.87 0.00
Europe Inc 60.62 - 1.17 1.48 UK Opportunities B Acc £ 1.72 - 0.01 2.27 Pacific Basin Specialist Equity Fund £ 20.22 - 0.04 0.99
Blend.Research U.S.Core Eq.Fd. ¥ 9383.00 - -2.00 -
Eur Dynamic exUK Acc 160.70 - 3.40 0.81 UK Smaller Companies B Acc £ 2.95 - 0.01 1.40 UK Sovereign Bd Index Fund £ 10.96 - 0.00 2.53 Odey Wealth Management (CI) Ltd (IRL)
Blend.Research Gb.Eq.Fd. $ 92.74 - 0.14 - McInroy & Wood Portfolios Limited (UK) www.odey.com/prices
Eur Dynamic exUK £ hdg Acc 178.70 - 2.80 0.74 Easter Alderston, Haddington, EH41 3SF 01620 825867 UK Specialist Equity Income Fund £ 9.12 - -0.05 4.25 FCA Recognised
Em.Mk.Eq.Fund Euro € 100.42 - -1.07 0.00 Authorised Inv Funds
Eur Dynamic exUK Inc 73.79 - 1.58 0.81 Kames Capital Investment Portfolios ICVC (UK) Global Spec Inv Grade Bd Fund GBP £ 9.76 - -0.02 3.03 Odey Opportunity EUR I € 212.83 - -0.21 0.00
Em.Mk.Eq.Fund Sterling £ 88.20 - -1.32 0.00 Balanced Fund Personal Class Units 3869.60 - 24.60 1.92
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA
Eur Smaller Cos Acc 513.50 - 12.20 0.03 0800 45 44 22 www.kamescapital.com Global Emerg Mkts Equity Fund X £ 10.16 - 0.05 0.08
Em.Mk.Eq.Fd.US Dollar $ 83.24 - -1.29 0.00 Income Fund Personal Class Units 2314.30xd - 9.20 3.04
Authorised Funds Series 2 (Investment Management customers only)
Eur Smaller Cos Inc 66.77 - 1.58 0.02 Omnia Fund Ltd
Property Income B Acc 119.30 - 0.02 4.62 Gb.Conc.Eq.Fd.Euro € 264.56 - 0.88 0.00 Emerging Markets Fund Personal Class Units 1545.40 - 10.60 2.53
United Kingdom Equity Index Fund £ 11.63 - -0.08 3.78 Other International Funds
Fusion Balanced Acc 53.88 - -0.05 0.48
Property Income B Inc 110.14 - 0.02 4.77 Gb.Conc.Eq.Fd.Sterl.UK T £ 165.35 - -0.15 0.00 Smaller Companies Fund Personal Class Units 3604.40 - 29.80 1.72 Estimated NAV $ 833.84 - -21.78 0.00
UK Specialist Equity Inc £ 18.54 - -0.15 1.66
Fusion Balanced Inc 54.12 - -0.20 0.48
Gb.Conc.Eq.Fd.Sterling £ 250.20 - -0.24 0.00
Contl Europe Spec Equity £ 16.01 - -0.12 1.23
Fusion Conservative Acc 53.40 - -0.01 0.66
Kames Capital VCIC (IRL) Gb.Conc.Eq.Fd.US $ 181.82 - -0.25 0.00 Meridian Fund Managers Ltd US Spec Equity Fund £ 14.06 - -0.07 0.39
Fusion Conservative Inc 53.34 - -0.01 0.68 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Other International Funds
Gb.Eq.Hdg Fd.Euro IRE T € 171.25 - 0.11 0.00
FCA Recognised Global Gold & Resources Fund $ 181.65 - 1.97 - Japan Specialist Fund X £ 10.37 - -0.04 0.65
Fusion Growth Acc 54.97 - -0.08 0.49
Absolute Return Bond B GBP Acc 1081.58 - -0.20 - Gb.Eq.Euro Hdg Fd. € 242.64 - 0.16 0.00
Global Energy & Resources Fund $ 34.67 - 0.79 - Pacific Basin Specialist Equity Fund £ 20.03 - 0.04 2.05
Fusion Growth Inc 54.97 - -0.08 0.49
Eq Market Neutral B Acc 1029.62 - 1.04 - Gb.Eq.Fund Euro € 266.40 - 0.84 0.00
UK Sovereign Bd Index Fund £ 11.15 - 0.00 2.53
Fusion Growth + Acc 57.23 - -0.09 0.49
Eq Market Neutral Plus B Acc 1051.41 - 2.16 - Gb.Eq. Fd Euro IRE T € 168.58 - 0.53 0.00 Optima Fund Management
Ministry of Justice Common Investment Funds (UK) UK Specialist Equity Income Fund £ 9.89 - -0.06 4.20
Fusion Growth + Inc 57.23 - -0.10 0.49 Other International Funds
High Yield Global Bond A GBP Inc 513.68 - -0.87 5.26 Gb.Eq.Fd.Sterling UK T £ 201.33 - -0.23 0.00 Property & Other UK Unit Trusts
Global Spec Inv Grade Bd Fund GBP £ 9.92 - -0.03 3.03 Cuttyhunk Fund II Limited $ 1360.80 - 38.19 0.00
Fusion Income Acc...C 53.35xd - 0.02 2.39 The Equity Idx Tracker Fd Inc 1261.00 1261.00 2.00 2.87
High Yield Global Bond B GBP Inc 1067.65 - -1.78 5.26 Gb.Eq.Fd.US Dollar $ 289.03 - -0.46 0.00
Global Emerg Mkts Equity Fund X £ 9.76 - 0.05 0.98 JENOP Global Healthcare Fund Ltd $ 15.05 - 0.04 0.00
Fusion Income Inc...C 50.41xd - 0.02 2.42 Distribution Units
Investment Grade Global Bd A GBP Inc 553.52 - -1.10 2.34 Gb.Eq.Fund Sterling £ 198.95 - -0.23 0.00 The initial charge you will pay will depend on the amount you invest
OPTIKA Fund Limited - Cl A $ 100.25 - -0.27 -
Global Allocation Acc 51.26 - -0.15 0.94 **Address and Telephone number for series 1 only
Kames Global Equity Income B GBP Acc 1171.89 - 18.02 - Gb.Val.Ex-Jap.Fd.USD $ 109.96 - 0.11 0.00
Mirabaud Asset Management (LUX) Optima Fd NAV (Est) $ 90.40 - 0.32 0.00
Global Allocation Inc 50.47 - -0.15 0.95
Kames Global Equity Income B GBP Inc 1117.09 - 17.18 - Gb.Val.Ex-Japan Fd.Yen ¥ 12689.00 - -27.00 0.00 www.mirabaud.com, marketing@mirabaud.com
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
Global Bond exUK Acc 252.20 - -0.40 0.74 Regulated
Strategic Global Bond A GBP Inc 1086.13 - 1.00 0.71 Gb.Val.Fd. Euro € 125.70 - 0.83 0.00
Mir. Conv. Bds Eur A EUR € 134.14 - -0.26 0.00 The Dorset Energy Fd Ltd NAV $ 22.66 - -0.55 0.00
Global Bond exUK Inc 198.40 - -0.30 0.74
Strategic Global Bond B GBP Inc 616.66 - 0.61 1.21 Gb.Val.Fd.Sterling £ 114.34 - 0.27 0.00
Mir. Conv. Bds Glb A USD $ 111.07 - -0.37 0.00 Platinum Fd Ltd $ 85.67 - 1.33 0.00
Global Bond Opport. Acc 48.35 - -0.16 2.92
Gb.Val.Fd.USD $ 98.34 - 0.19 0.00
Mir. - Eq Asia ex Jap A $ 155.86 - -1.49 0.00 Platinum Fd Ltd EUR € 16.63 - 0.25 0.00
Global Bond Opport. Inc 47.22 - -0.15 2.99
Kleinwort Benson Bank (UK) Low Volatility Gb.Eq.Fd.Euro € 101.09 - 0.58 -
Mir. - Eq Glb Emrg Mkt A USD $ 78.31 - -0.87 0.00 New Capital Fund Management Ltd (IRL) Platinum Japan Fd Ltd $ 53.13 - -0.05 0.00
Global Eq Income £ hdg Acc... C 65.39 - 0.38 3.31 14 St. George Street, Mayfair, London W1S1FE
Low Volatility Gb.Eq.Fd.Sterl £ 101.44 - 0.15 - Leconfield House, Curzon Street, London, W1J 5JB
Dealing and enquiries: 0800 024 2400 Mir. - Eq Global Focus A USD $ 94.69 - -0.38 0.00 FCA Recognised Optima Partners Global Fd $ 14.22 - 0.00 0.00
Global Eq Income £ hdg Inc ... C 46.79xd - 0.27 3.38
Authorised Inv Funds Low Volatility Gb.Eq.Fd.USD $ 96.85 - 0.10 - New Capital UCITS Funds
Unit Trust Manager/ACD - Host Capital Mir. -Eq Spain A € 23.52 - -0.15 0.00 Optima Partners Focus Fund A (Est) $ 14.26 - -1.52 0.00
Global Eq Income Acc... C 70.99 - 0.86 3.18
Low Volatility Gb.Eq.Fd.Yen ¥ 8865.00 - -19.00 - Asia Pac Bd USD Inst Inc $ 90.43 - 0.23 3.27
HC KB Capital Growth A Acc 165.69 - 1.26 1.36 Mir. - Eq Swiss Sm/Mid A SFr 314.88 - -0.95 0.00
Global Eq Income Inc ... C 61.50 - 0.74 3.24
Asia Pac Bd USD Ord Inc $ 92.42 - 0.22 2.53
HC KB Capital Growth A Inc 155.15 - 1.18 1.38 Mir. - Glb High Yield Bds A $ 106.39 - -0.13 - Oryx International Growth Fund Ltd
Global Financials Acc 690.80 - 6.10 0.90
Asia Pac Eq EUR Ord Inc € 77.97 - -1.75 3.42 Other International Funds
HC KB Enterprise Equity Income A Inc 104.55 - -0.65 3.06
MFS Meridian Funds SICAV (LUX)
Mir. - Glb Eq High Income A USD $ 93.16 - 0.04 0.00
Global Financials Inc 39.29 - 0.35 0.91 Regulated NAV (Fully Diluted) £ 6.93 - 0.36 0.00
Asia Pac Eq GBP Ord Inc £ 80.57 - -1.84 3.86
HC KB Enterprise Equity Income A Acc 155.33 - -0.97 3.69 Absolute Return A1 € 19.78 - -0.03 0.00 Mir. - Glb Inv Grade Bds A € 100.12 - -0.21 -
Global High Yield Bd Mth Inc C 34.59xd - -0.15 7.28
Asia Pac Eq USD Ord Inc $ 81.43 - -1.81 3.24
HC KB Endeavour Multi Asset Balanced A Acc 127.99 - 0.37 0.81 Asia ex-Japan A1 $ 20.64 - -0.17 0.00 Mir. - Glb Strat. Bd A USD $ 103.72 - -0.12 0.00
Global High Yield Bd Acc C 92.40xd - -0.40 7.21 OTP Asset Management Romania SAI SA ((ROM))
Asia Pac Eq USD Inst Acc $ 87.59 - -1.92 0.00
HC KB Endeavour Multi Asset Balanced A Inc 121.64 - 0.35 0.81 Bond A1 $ 10.31 - -0.03 0.00 www.otpfonduri.ro
Global High Yield Bd Inc C 34.91xd - -0.15 7.21
Asia Pac Eq USD Inst Inc $ 90.76 - -2.02 3.97 Other International Funds
HC KB Enterprise Fixed Income A Acc 122.87 - -0.08 3.44 China Equity Fd A1 $ 9.28 - -0.01 0.00 MW Japan Fund Plc (IRL)
Global Property Secs Acc 56.24 - 0.14 0.60 OTP Comodisro RON 16.88 - 0.00 -
FCA Recognised Dyn Europ Eq EUR Ord Inc € 167.41 - -0.17 1.33
HC KB Enterprise Fixed Income A Inc 109.07 - -0.07 3.44 Continental European Eqty A1 € 16.32 - -0.05 0.00
Global Property Secs Inc 48.54 - 0.12 0.59 MW Japan Fund PLC A $ 23.85 - -0.66 - OTP Obligatiuni RON 14.28 - 0.01 -
Dyn Europ Eq GBP Ord Inc £ 177.51 - -0.18 1.69
Emer Mkts Debt Lo Curr Fd A1 $ 10.35 - -0.08 0.00
Global Unconstrained Eq. Acc 962.60 - -0.30 0.16 MW Japan Fund PLC B $ 24.03 - -0.67 - OTP Avantisro RON 8.17 - -0.08 -
Dyn Europ Eq USD Ord Inc $ 167.12 - -0.17 1.25
Lloyds Investment Fund Managers Limited (1000)F (JER) Emerging Markets Debt A1 $ 32.32 - -0.08 0.00
Global Unconstrained Eq. Inc 71.54 - -0.03 0.15 MW Japan Fund PLC C $ 89.92 - -2.98 - OTP Euro Bond € 12.42 - 0.00 -
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 China Equity EUR Ord Acc € 117.88 - -4.42 0.00
Other International Funds Emerging Markets Eq.A1 $ 9.18 - -0.15 0.00
Income Acc ... C 48.50 - -0.12 7.44 OTP Dollar Bond $ 10.57 - 0.00 -
China Equity GBP Ord Acc £ 122.83 - -4.69 0.00
Lloydstrust Gilt £ 12.1500xd - 0.0000 2.36 European Concentrated A1 € 16.05 - -0.03 0.00
Income Inc ... C 44.69 - -0.11 7.57 Morant Wright Funds (Ireland) PLC (IRL) OTP Premium Return RON 1060.57 - -3.02 -
Lloyds Investment Funds Limited China Equity USD Ord Acc $ 119.82 - -4.46 0.00
FCA Recognised
European Core Eq A1 € 29.46 - 0.03 0.00
Japan Acc 295.00 - -8.40 0.00 Euro High Income € 1.5930xd - -0.0040 3.05 China Equity USD Inst Acc $ 123.29 - -4.58 0.00
Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 -
European Res.A1 € 30.38 - 0.00 0.00
Japan Inc 71.02 - -2.01 0.00 European £ 7.2010 - 0.0450 1.47 Global Val.Cr.Fd GBP Ord Inc £ 108.00 - -0.23 3.63
Morant Wright Fuji Yield EUR Dist Hedged € 10.23 - -0.33 -
European Smaller Companies A1 € 49.83 - 0.07 0.00
Multi-Asset Inc Mth Inc ... C 61.66 - 0.04 3.71 High Income £ 0.8573xd - -0.0008 4.99 Global Val.Cr.Fd USD Inst Acc $ 121.59 - -0.26 0.00
Morant Wright Fuji Yield GBP Acc Hedged £ 10.61 - -0.34 0.00
European Value A1 € 34.40 - 0.12 0.00
Multi-Asset Inc Acc... C 82.61 - 0.06 3.70 International £ 3.7750 - 0.0040 1.34 Global Val.Cr.Fd GBP Ord Acc £ 175.21 - -0.37 0.00
Morant Wright Fuji Yield GBP Dist Hedged £ 10.31 - -0.34 -
Global Conc.A1 $ 33.85 - -0.06 0.00
Multi-Asset Inc Inc... C 62.02 - 0.05 3.80 North American £ 15.0800 - 0.1200 0.22 Global Val.Cr.Fd USD Ord Acc $ 164.46 - -0.35 0.00
Morant Wright Fuji Yield USD Acc Hedged $ 10.32 - -0.33 0.00
Global Credit Fund $ 10.20 - -0.04 0.00 Permal Investment Mgmt Svcs Ltd
Multi-Asset Macro Acc 66.82 - 0.07 0.00 Sterling Bond £ 1.4520xd - -0.0020 3.72 Global Val.Cr.Fd EUR Ord Acc € 153.01 - -0.31 0.00
Morant Wright Fuji Yield USD Dist Hedged $ 10.35 - -0.33 2.14 www.permal.com
Global Energy Fund A1 $ 10.95 - -0.20 0.00
Multi-Asset Macro Inc 66.82 - 0.07 0.00 UK £ 6.0470 - -0.0030 1.85 Other International Funds
Swiss Select Equity Inst Acc SFr 109.08 - -0.37 0.00
Morant Wright Fuji Yield YEN Acc ¥ 1065.23 - -33.62 0.00
Global Equity A1 $ 41.82 - -0.07 0.00 Offshore Fund Class A US $ Shares
Multi-Manager Growth Acc 710.20 - 3.70 0.47 Lloyds Gilt Fund Limited Swiss Select Equity Ord Acc SFr 107.79 - -0.37 0.00
Morant Wright Fuji Yield B YEN Acc ¥ 938.66 - -29.68 - Investment Holdings N.V. $ 5417.00 - -70.68 0.00
Lloyds Gilt Fund Quarterly Share £ 1.2660xd - -0.0010 1.87 Global Equity A1 € 24.37 - -0.09 0.00
Multi-Manager Growth Inc 662.80 - 3.50 0.47
US Growth USD Ord Acc $ 191.19 - -0.72 0.00
Morant Wright Fuji Yield YEN Dist ¥ 1043.13 - -32.92 2.13 Macro Holdings Ltd $ 4176.78 - -15.24 0.00
Monthly Share £ 1.2200xd - -0.0010 1.87 Global High Yield Fund $ 23.66 - -0.08 0.00
Natural Resources Acc 287.70 - -7.80 0.14
US Growth EUR Ord Acc € 182.72 - -0.69 0.00
Lloyds Money Fund Limited Morant Wright Sakura Fund Sterling Acc Hedged £ 12.89 - -0.42 0.00 Fixed Income Holdings N.V. $ 349.32 - -14.81 -
Global High Yield Fund € 15.84 - -0.08 0.00
Natural Resources Inc 20.37 - -0.56 0.14
Sterling Class £ 52.6200 - 0.0000 0.11 US Growth GBP Ord Acc £ 192.01 - -0.73 0.00
Morant Wright Sakura Fund Euro Acc Hedged € 12.86 - -0.42 0.00 Permal Absolute Return Fund $ 163.59 - 0.48 0.00
Global Multi-Asset A1 $ 14.36 - -0.07 0.00
Portfolio Acc 194.40 - 0.20 0.70 Lloyds Multi Strategy Fund Limited US Growth USD Inst Acc $ 176.71 - -0.65 0.00
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1315.21 - -41.76 0.00
Global Res.A1 $ 23.78 - -0.09 0.00
Sterling Corporate Bond Acc 82.96xd - -0.07 2.31 Conservative Strategy £ 1.0920 - -0.0010 1.97
Wealthy Nat Bd EUR Inst Inc € 105.07 - -0.30 3.83
Morant Wright Sakura Fund Dollar Acc Hedged $ 12.82 - -0.41 0.00
Global Total Return A1 € 17.13 - -0.06 0.00
Sterling Corporate Bond Inc 51.86xd - -0.04 2.31 Growth Strategy £ 1.4410 - -0.0060 1.32
Wealthy Nat Bd GBP Inst Inc £ 109.14 - -0.33 3.66
Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 12.73 - -0.41 0.00
Inflation-Adjusted Bond A1 $ 13.76 - -0.05 0.00
Strategic Bond Acc 67.96 - -0.16 3.25 Aggressive Strategy £ 1.7310 - -0.0100 0.00
Wealthy Nat Bd EUR Ord Inc € 104.41 - -0.30 3.59
Japan Equity A1 $ 9.79 - 0.05 0.00
Strategic Bond Inc 56.42 - -0.13 3.25 Global USD Growth Strategy $ 1.2890 - -0.0070 0.00
Wealthy Nat Bd GBP Ord Inc £ 109.82 - -0.33 3.39
Dealing Daily Latin American Equity Fd A1 $ 10.03 - -0.06 0.00
UK Dynamic Acc 156.60 - 2.30 1.51
Wealthy Nat Bd USD Ord Inc $ 107.00 - -0.31 3.37 Pictet Asset Management (Europe) SA (LUX)
Limited Maturity A1 $ 13.99 - 0.00 0.00 15, Avenue J.F. Kennedy L-1855 Luxembourg
UK Dynamic Inc 128.10 - 1.90 1.52 New Capital Alternative Strategies
Lothbury Property Trust (UK) Tel: 0041 58 323 3000
Prudent Wealth Fd A1 $ 14.54 - 0.02 0.00 All Weather Fd USD Cls $ 118.47 - 0.69 0.00
UK Eq & Bond Inc Acc ... C 138.10 - 1.20 3.44 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 FCA Recognised
Property & Other UK Unit Trusts Research Bond A1 $ 16.51 - -0.02 0.00 All Weather Fd EUR Cls € 106.34 - 0.53 0.00 Pictet-Absl Rtn Fix Inc-HI EUR € 106.50 - -0.10 0.00
UK Eq & Bond Inc Inc ... C 80.33 - 0.65 3.51
Lothbury Property Trust GBP £ 1802.73 1933.97 16.21 3.09 Morgan Stanley Investment Funds (LUX)
UK Equity A1 £ 7.63 - -0.04 0.00 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 All Weather Fd GBP Cls £ 114.58 - 0.58 0.00 Pictet-Absl Rtn Glo Div-I EUR F € 122.57 - 0.10 0.00
UK Equity Blue Chip Acc 63.10 - 0.69 2.24
www.morganstanleyinvestmentfunds.com
US Conc.Growth A1 $ 14.41 - -0.01 0.00 Tactical Opps USD Cls $ 122.83 - -12.66 0.00 Pictet-Agriculture-I EUR F € 172.14 - -1.20 0.00
UK Equity Blue Chip Inc 52.82 - 0.58 2.28 FCA Recognised
US Government Bond A1 $ 17.09 - -0.01 0.00 US Advantage A F $ 55.42 - 0.67 0.00 Tactical Opps EUR Cls € 102.72 - -10.56 0.00 Pictet-Asian Equities Ex Japan-I USD F $ 183.53 - -1.29 0.00
UK Equity Core Acc 269.40 - 2.60 3.18
Value A1 $ 20.41 - 0.04 0.00 Asian Equity A F $ 37.23 - 0.17 0.00 Tactical Opps GBP Cls £ 115.38 - -12.11 0.00 Pictet-Asian Local Currency Debt-I USD F $ 149.01 - -0.72 0.00
UK Equity Core Inc 50.80 - 0.49 3.18
UK Equity Growth Acc 110.60 - 1.40 1.19 Asian Property A F $ 16.56 - 0.05 0.00 Pictet-Biotech-I USD F $ 731.12 - -27.13 0.00
UK Equity Growth Inc 103.20 - 1.30 1.20 MMIP Investment Management Limited (GSY) Asian Property AX F £ 10.78 - -0.01 0.54 Pictet-Brazil Index I USD $ 30.80 - -0.63 0.00
M & G Securities (1200)F (UK) Regulated
UK Higher Inc Acc ... C 879.70 - 10.00 4.26 PO Box 9039, Chelmsford, CM99 2XG Multi-Manager Investment Programmes PCC Limited Diversified Alpha Plus A F € 29.43 - -0.03 0.00 Pictet-CHF Bonds I CHF SFr 505.68 - -1.39 0.00
www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00 Emerg Europ, Mid-East & Africa Eq A F € 59.37 - 0.59 0.00 Pictet-China Index I USD $ 92.63 - -3.20 0.00
UK Higher Inc Inc ... C 511.30 - 5.80 4.40 Authorised Inv Funds
Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 Emerging Markets Debt A F $ 73.56 - -0.36 0.00 Pictet-Clean Energy-I USD F $ 71.43 - -0.72 0.00
UK Smaller Cos Acc 386.70xd - 0.60 0.27 Charifund Inc 1390.32 - 10.02 4.98
UK Smaller Cos Inc 74.89xd - 0.11 0.27 Charifund Acc 19189.93 - 138.26 4.82
MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00 Emerging Markets Domestic Debt AX F £ 10.18 - 0.10 5.66 Northwest Investment Management (HK) Ltd Pictet-Digital Communication-I USD F $ 241.86 - -0.82 0.00
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00 Emerging Markets Equity A F $ 30.01 - 0.12 0.00 Other International Funds Pictet-Eastern Europe-I EUR F € 241.44 - -15.46 0.00
UK Strategic Eq Inc Acc ... C 145.80 - 1.70 3.88 M&G Corporate Bond A Acc 62.71xd - -0.03 3.07
UK Equity Fd Cl A Series 01 £ 2357.45 2381.20 0.73 0.00 Euro Bond A F € 15.69 - -0.02 0.00 Northwest $ class $ 2357.94 - -24.48 0.00
UK Strategic Eq Inc Inc ... C 94.31 - 1.12 3.97 M&G Corporate Bond A Inc 39.15xd - -0.02 3.09 Pictet-Em Lcl Ccy Dbt-I USD F $ 147.66 - -1.00 0.00
Diversified Absolute Rtn Fd USD Cl AF2 $ 1586.40 - -4.69 0.00 Northwest Warrant $ class $ 1969.35 - -444.40 0.00
US Acc 703.90 - 6.90 0.00 M&G Dividend A Inc 58.24xd - 0.19 4.68 Euro Corporate Bond AX F £ 22.10 - 0.10 1.54 Pictet-Emerging Markets-I USD F $ 413.42 - -3.05 0.00
Diversified Absolute Return Stlg Cell AF2 £ 1607.75 - -3.92 0.00 Euro Strategic Bond A F € 43.09 - -0.10 0.00 Pictet-Emerging Markets Index-I USD F $ 188.02 - -4.34 0.00
US Inc 97.42 - 0.95 0.00 M&G Dividend A Acc 591.28xd - 1.92 4.51
US Equity Income Acc ... C 118.90 - 1.30 2.18 M&G Episode Growth X Inc 48.96 - 0.13 1.86 European Currencies High Yield Bd A F € 21.19 - -0.04 0.00 Pictet-Emerging Corporate Bonds I USD $ 105.15 - -0.16 0.00
US Equity Income £ hdg Inc ... C 92.59 - 0.05 2.38 M&G Episode Income A Acc 131.99xd - 0.15 3.74
Manek Investment Mgmt Ltd (1000)F (UK) European Equity Alpha A F € 40.40 - 0.43 0.00 Pictet-Emerging Markets High Dividend I USD $ 81.35 - -0.77 0.00
P.O.Box 100, Swindon SN1 1WR 0844 800 9401
US Equity Income Inc ... C 100.90 - 1.06 2.21 M&G Episode Income A Inc 109.46xd - 0.13 3.81 Authorised Inv Funds European Property A F € 34.00 - 0.15 0.00 Pictet-Emerging Markets Sust Eq I USD $ 74.07 - -1.28 0.00
Growth Fd Acc 53.11 56.12 -0.07 0.00 Eurozone Equity Alpha A F € 10.90 - 0.13 0.00 Pictet-Environmental Megatrend Sel I EUR € 151.98 - 0.07 0.00
US Select Acc 108.70 - 0.90 0.00 M&G Extra Income A Inc 701.73xd - 4.26 4.64
Oasis Crescent Management Company Ltd
US Select Inc 107.30 - 0.80 0.00 M&G Extra Income A Acc 5789.42xd - 35.21 4.50 Global Bond A F $ 38.07 - -0.14 0.00 Pictet-EUR Bonds-I F € 555.43 - -1.04 0.00
Other International Funds
LNG Capital (CYM)
US Smaller Cos Acc 345.80xd - -2.10 0.00 M&G Global Basics A Inc 590.72 - 5.35 0.64 Global Brands A F $ 94.97 - 0.81 0.00 Oasis Crescent Equity Fund R 9.17 - -0.05 0.00 Pictet-EUR Corporate Bonds Ex Fin i EUR € 142.39 - -0.22 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
US Smaller Cos Inc 90.61xd - -0.56 0.00 M&G Global Basics A Acc 897.60 - 8.12 0.59 www.lngcapital.com, Tel: 0207 839 3456 Global Convertible Bond A F $ 40.84 - -0.09 0.00 Pictet-EUR Corporate Bonds-I F € 198.91 - -0.32 0.00
Regulated
M&G Global Dividend Fund A Acc 173.81xd - 0.32 3.62 Global Property A F $ 26.42 - 0.03 0.00 Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pictet-EUR Government Bonds I EUR € 158.24 - -0.23 0.00
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Regulated
JPMorgan Charity Funds (UK) M&G Global Dividend Fund A Inc 136.09xd - 0.25 3.70 Indian Equity A F $ 33.00 - -0.19 0.00 Pictet-EUR High Yield-I F € 238.26 - -0.35 0.00
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - Oasis Global Investment (Ireland) Plc
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175
M&G Glbl Emrgng Mkts A Acc 168.69 - 1.47 1.03 Latin American Equity A F $ 32.88 - -0.08 0.00 Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.86 Pictet-EUR Short Mid-Term Bonds-I F € 136.99 - 0.00 0.00
Property & Other UK Unit Trusts LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
UK Equity Fund for Charities I...C £ 2.683501xd 2.694220 1.644299 3.84 M&G Glbl Emrgng Mkts A Inc 162.97 - 1.42 1.04 Short Maturity Euro Bond A F € 20.36 - -0.01 0.00 Oasis Global Equity $ 25.38 - -0.07 0.23 Pictet-EUR Short Term HY I EUR € 118.85 - -0.06 0.00
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Oasis Crescent Global Investment Fund (Ireland) plc Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.94 - 0.00 0.00
Bond Fund for Charities £ 1.334887xd 1.341057 0.295685 3.58 M&G Global Macro Bond Fund A Acc 110.16 - 0.97 1.38
Marlborough Fd Managers Ltd (1200)F (UK)
Oasis Crescent Global Equity Fund $ 25.80 - -0.12 0.00
M&G Global Macro Bond Fund A Inc 76.32 - 0.68 1.38 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 US Growth A F $ 64.71 - 1.00 0.00 Pictet-Euroland Index IS EUR € 122.66 - -0.06 0.00
www.marlboroughfunds.com Oasis Crescent Variable Balanced Fund £ 10.03 - -0.01 0.59
M&G Global High Yield Bond X Inc 47.69xd - 0.41 4.72 Authorised Inv Funds US Growth AH F € 44.82 - 0.69 0.00 Pictet-Europe Index-I EUR F € 157.76 - -0.52 0.00
OasisCresGl Income Class A $ 10.67 - 0.00 2.42
M&G Global High Yield Bond X Acc 113.24xd - 0.98 4.71 Balanced 153.42 162.24 -0.03 0.05 US Growth AX F £ 43.72 - -1.17 0.00 Pictet-European Equity Selection-I EUR F € 587.26 - -2.16 0.00
OasisCresGl LowBal D ($) Dist $ 11.10 - -0.06 0.00
M&G Managed Growth X Inc 72.70 - 0.72 0.60 Bond Income 49.52 52.40 -0.04 4.94 US Property A F $ 67.12 - 0.05 0.00 Pictet-European Sust Eq-I EUR F € 230.46 - -0.13 0.00
OasisCresGl Med Eq Bal A ($) Dist $ 11.22 - -0.06 0.33
M&G Optimal Income A Inc 140.82 - -0.07 2.63 Cash 50.05 50.05 0.00 0.32 Pictet-Global Bds Fundamental I USD $ 115.05 - -0.38 0.00
Oasis Crescent Gbl Property Eqty $ 9.00 - -0.05 2.07
GAM M&G Optimal Income A Acc 186.03 - -0.09 2.63 Cautious Inc 81.04 85.28 -0.28 1.34 Morgens Waterfall Vintiadis.co Inc Pictet-Global Bonds-I EUR € 166.53 - 0.41 0.00
funds@gam.com, www.jbfundnet.com Other International Funds
M&G Recovery GBP A Inc 108.59xd - 0.30 0.85 Defensive A Inc 117.73 117.73 0.07 0.27 Pictet-Global Emerging Currencies-I USD F $ 94.01 - -0.13 0.00
Regulated
Phaeton Intl (BVI) Ltd (Est) $ 381.15 - -21.38 0.00
Emerging Markets 207.46 207.46 -0.19 1.84
Ms EF Special Val. EUR/A € 129.15 - -0.14 1.15 M&G Recovery GBP A Acc 244.83xd - 0.68 0.84 Pictet-Global Emerging Debt-I USD F $ 352.37 - -0.55 0.00
Strategy Balanced-CHF/B SFr 144.52 - 0.05 0.00 M&G Strategic Corp Bond A Inc 72.70xd - -0.04 2.97 ETF Global Growth A 151.23 151.23 2.03 0.00 Pictet-Global Megatrend Selection-I USD F $ 204.77 - -1.63 0.00
Strategy Balanced-EUR € 149.37 - 0.03 0.00 M&G Strategic Corp Bond A Acc 104.93xd - -0.06 2.97 ETF Commodity A 63.77 63.77 -0.44 0.00 Pictet-Greater China-I USD F $ 396.75 - -4.11 0.00
Strategy Balanced-USD/B $ 124.70 - -0.10 0.00 M&G Global Leaders GBP A Inc 184.49 - 2.10 1.41 European Multi-Cap 294.36 294.36 3.45 0.28 Pictet-Health-I USD $ 251.31 - -4.93 0.00
Odey Asset Management LLP (UK)
Strategy Growth-CHF/B SFr 87.74 - 0.10 0.00 M&G Global Leaders GBP A Acc 434.51 - 4.94 1.40 Extra Income 77.80 82.33 0.53 4.46 Pictet-High Dividend Sel I EUR F € 147.91 - 0.29 0.00
40 Dukes Place, London, EC3A 7NH
Order Desk and Enquiries: 0345 300 2106
Strategy Growth-EUR € 110.21 - 0.11 0.00 M&G UK Inflation Lnkd Corp Bnd A Acc 109.93 - -0.12 0.12 Far East Growth A Inc 151.29 151.29 0.21 2.49 Pictet-India Index I USD $ 90.95 - -0.83 0.00
Natixis International Funds (Lux) I SICAV (LUX) Authorised Corporate Director - Capita Financial Managers
Global 172.25 181.29 -1.40 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Authorised Inv Funds
Strategy Inc-CHF/B SFr 116.79 - -0.03 0.00 M&G UK Inflation Lnkd Corp Bnd A Inc 108.36 - -0.11 0.12 Pictet-Indian Equities-I USD F $ 409.31 - -3.06 0.00
FCA Recognised
CF Odey Continental European GBP R Acc 726.35 - 12.18 0.03
Strategy Inc-EUR/B € 156.38 - -0.07 0.00 Global Bond Inc 138.11 146.15 0.29 3.15 Pictet-Japan Index-I JPY F ¥ 14781.44 - -468.23 0.00
Harris Global Equity R/A (USD) $ 235.10 235.10 -0.34 0.00
CF Odey Opus GBP R Inc 3749.11 - 44.99 0.00
Strategy Inc-USD/B $ 143.17 - -0.16 0.00 High Yield Fixed Interest 71.70 76.07 0.00 5.79 Pictet-Japanese Equities Opp-I JPY F ¥ 8791.51 - -282.04 0.00
M & G Securities Ltd (UK) Harris US Equity Fund R/A (USD) $ 189.14 189.14 -0.09 0.00
Property & Other UK Unit Trusts CF Odey Absolute Return GBP R 325.35 - -1.76 0.00
Multi Cap Income A Inc 157.46 157.46 1.13 4.47 Pictet-Japanese Equity Selection-I JPY F ¥ 13043.56 - -426.93 0.00
Harris Concentrated US Equity R/A (USD) $ 143.09 143.09 -0.31 0.00
Charibond 123.28 - -0.01 5.24 CF Odey Portfolio Fund GBP R Inc 145.19 - 0.64 0.07
Nano-Cap Growth A Acc 104.2195 114.8000 0.2993 0.00 Pictet-LATAM Index I USD $ 42.84 - -0.30 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 109.23 109.23 -0.17 -
(Accum Units) 3649.81 - -0.20 5.24
Special Situations A Acc 1189.32 1258.54 1.28 0.37 Pictet-LATAM Lc Ccy Dbt-I USD F $ 102.61 - 0.03 0.00
NAACIF 72.13 - 0.35 4.85
UK Multi-Cap Growth A Inc 241.46 255.51 1.72 0.65 Odey Asset Management LLP (CYM)
Pictet-Pacific Ex Japan Index-I USD F $ 298.94 - -4.31 0.00
(Accum Units) 6465.61 - 31.85 4.73 Natixis International Funds (Dublin) I plc (IRL) Regulated
UK Micro Cap Growth A 477.91 505.73 0.77 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
OEI Mac Inc GBP A £ 358.19 - -15.28 0.00 Pictet-Premium Brands-I EUR F € 142.33 - 0.19 0.00
M&G Property Portfolio A Acc 135.90 143.05 0.00 3.23 Regulated
Kames Capital ICVC (UK) US Multi-Cap Income 316.94 316.94 4.41 0.64
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.24 12.24 -0.03 1.22 OEI Mac Inc GBP B £ 201.79 - -3.13 0.00 Pictet-Quality Global Equities I USD $ 127.60 - -0.10 0.00
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Property Portfolio A 123.89 130.41 0.00 3.29
MFM - Third Party Funds
0800 45 44 22 www.kamescapital.com Loomis Sayles High Income R/D (USD) $ 7.29 7.29 -0.02 15.55 OEI MAC Inc USD $ 1914.43 - -79.92 0.00 Pictet-Russia Index I USD $ 41.42 - -2.63 0.00
Authorised Funds Property Portfolio X 123.89 123.89 0.00 3.29 Junior Oils 50.85 53.81 -4.05 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 11.34 11.34 -0.01 5.93 Odey European Inc EUR € 837.15 - -33.12 0.00 Pictet-Russian Equities-I USD F $ 37.10 - -2.12 0.00
Diversified Income B Acc 111.10 - 0.35 0.00 Junior Gold C Acc 19.13 19.13 -0.59 0.00
Odey European Inc GBP A £ 322.51 - -12.70 0.00 Pictet-Security-I USD F $ 187.83 - -0.63 0.00
Diversified Income B Inc 100.86 - 0.32 0.00 M & G (Guernsey) Ltd (GSY) MFM Artorius Fund 159.91 159.91 -1.22 0.30
Regulated Odey European Inc GBP B £ 183.03 - -7.20 0.00 Pictet-Select-Callisto I EUR € 105.47 - 0.22 0.00
Diversified Growth B Acc £ 1.36 - 0.00 3.28 Natixis International Funds (UK)
The M&G Offshore Fund Range MFM Bowland 162.05 175.19 -1.92 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Odey European Inc USD $ 387.15 - -14.81 0.00 Pictet-Small Cap Europe-I EUR F € 1088.22 - -6.49 0.00
Ethical Cautious Managed B Acc £ 1.21 - 0.00 2.29 Corporate Bond 1303.39 1343.70 -0.66 3.09 MFM Hathaway Inc 103.66 108.54 -1.49 1.92 Authorised Funds
H2O MultiReturns Fund N/A (GBP) £ 1.37 - 0.00 1.46 Giano Capital EUR Inc € 4652.16 - 195.57 0.00 Pictet-ST.MoneyMkt-I € 140.45 - 0.00 0.00
Ethical Cautious Managed B Inc £ 1.15 - 0.00 2.32 Global Basics 2185.70 2253.30 19.67 0.33 MFM SGWM Managed A Acc 123.63 123.63 -0.84 0.16
Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 0.99 - 0.01 0.00 Pictet-ST.MoneyMkt JPY I USD ¥ 101509.09 - -2.65 0.00
Ethical Corporate Bond B Acc £ 1.71 - 0.00 3.70 Global Leaders 3203.87 3337.37 36.40 1.10 MFM Techinvest Special Situations Acc 142.30 142.30 0.22 0.01
Loomis Sayles Strategic Income N/D (GBP) £ 0.95 - 0.00 4.31 Odey Asset Management LLP (IRL) Pictet-ST.MoneyMkt-ICHF SFr 124.15 - -0.01 0.00
Ethical Corporate Bond B Inc £ 0.99 - 0.00 3.77 Global High Yield Bond 937.62 966.62 8.05 4.71 MFM Techinvest Technology Acc 346.83 346.83 -3.98 0.00
FCA Recognised
Loomis Sayles Strategic Income H-N/D (GBP) £ 0.87 - 0.00 4.47 Pictet-ST.MoneyMkt-IUSD $ 135.32 - 0.00 0.00
Ethical Equity B Acc £ 1.97 - 0.02 2.08 Global Macro Bond Fund 11454.31 11808.57 101.82 1.38 MFM UK Primary Opportunities A Inc 321.01 321.01 1.66 1.37 Odey Pan European EUR R € 329.62 - 0.29 0.00
Asset Management
High Yield Bond B Acc £ 2.40 - 0.00 5.16 North American Dividend Fund 149.81 156.05 0.28 2.36 Slater Investments Ltd - Investment Adviser Loomis Sayles US Equity Leaders N/A (GBP) £ 1.47 - 0.02 0.25
Odey Absolute Return Focus Fund $ 100.00 - - -
Pictet-Timber-I USD F
Managemen
$ 132.93 - -1.08 0.00
High Yield Bond B Inc £ 0.95 - 0.00 5.28 Optimal Income Fund Asset Management 139.55 143.86 -0.07 2.63
MFM Slater Growth
MFM Slater Income A Inc
418.47 444.00 0.36 0.11
159.09 159.09 0.77 3.85
Asset Management
Seeyond Factor Plus Europe Ex U.K Equity Fund N/A (GBP) £ 0.98 - 0.02 -
Odey Allegra European EUR O € 255.26 - -0.31 0.00
Pictet Total Ret-Agora I EUR € 116.66
Pictet Total Ret-Corto Europe I EUR € 135.88
-
-
-0.04 0.00
-0.10 0.00
Seeyond Factor Plus U.K Equity Fund N/A (GBP) £ 0.96 - 0.01 -
Investment Grade Bond B Acc 159.55 - -0.09 1.50 Recovery Fund Limited 'A' Participating Shares 9420.15 9812.65 24.12 0.52 Odey Allegra International EUR O € 171.02 - 0.60 0.00
MFM Slater Recovery 181.58 192.66 0.02 0.23 Pictet Total Ret-Divers Alpha I EUR € 105.08 - 0.24 0.00
Investment Grade Bond B Inc £ 1.16 - 0.00 3.58 Recovery Fund Limited 'I' Participating Shares 9410.25 9505.30 25.80 1.38 Odey Allegra Developed Markets USD I $ 119.61 - -0.41 0.00
NatWest (2230)F (UK) Pictet Total Ret-Kosmos I EUR € 109.03 - 0.07 0.00
Sterling Corporate Bond B Acc £ 0.74 - 0.00 3.39 Strategic Corporate Bond Fund 132.00 137.50 -0.08 2.96 Odey European Focus Fund € 17.05 - 0.00 0.50
PO Box 23873, Edinburgh EH7 5WJ**
Marlborough International Management Limited (GSY) Pictet Total Ret-Mandarin I USD $ 110.61 - -0.43 0.00
Sterling Corporate Bond B Inc £ 0.32 - 0.00 3.45 UK Select 1441.55 1501.61 10.85 0.97 Enquiries: 0800 085 5588 Odey Atlas Fund GBP I S £ 1.13 - -0.01 0.00
Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Authorised Inv Funds Pictet-US Equity Selection-I USD $ 176.21 - -0.27 0.00
Strategic Bond B Acc £ 1.11 - 0.00 2.78 FCA Recognised Odey Giano European Fund EUR R € 122.95 - -0.83 0.00
Series 1(Minimum initial investment 16375,000)
Marlborough North American Fund Ltd £ 31.26 33.31 -0.45 0.00 Pictet-US High Yield-I USD F $ 142.61 - -0.32 0.00
Strategic Bond B Inc £ 1.16 - 0.00 2.81 United Kingdom Equity Index Fund £ 11.63 - -0.08 3.09 Odey Naver Fund EUR I € 128.06 - 0.24 0.00
Wednesday 13 January 2016 FINANCIAL TIMES 31

MANAGED FUNDS SERVICE

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32 ★ FINANCIAL TIMES Wednesday 13 January 2016

MARKETS & INVESTING

Capital markets
Novo Banco action sets
dangerous precedent
Little more than a year
since the European Central
Bank took over as the
regulator for Europe’s
systemically important
banks, we face a situation
in Portugal that calls into
question the rule of law in
that country and in the EU,
writes Philippe Bodereau.
This also raises very
serious questions over how
the ECB intends to act as
Europe’s banking regulator.
On December 29, credit
markets in Europe were
shocked when the Bank of
Portugal opted to
confiscate the assets of
holders of five senior bonds
in Novo Banco, the good
bank born of the resolution
of Banco Espírito Santo in
August 2014.
This effectively
discriminates against
foreign bondholders versus
the interests of Portuguese
bondholders. It also
discriminates against
institutional bondholders in
favour of pari passu
individual investors in the
senior notes.
Where banks are judged
to be insolvent, then it is
right and proper that
senior bondholders should
be bailed in and take
losses. But this must be
done fairly and, indeed, in
accordance with the law.
What is clear is that in
the case of Novo Banco,
the ECB itself has
concluded that the bank
was solvent and in no need
of another resolution,
leaving no legal and
economic rationale behind
the radical course of action
undertaken by Portugal. It
is important to stress that
there is no new resolution,
bail-in or insolvency
proceeding here.
The ECB has been
responsible for the
regulatory oversight of
Novo Banco since
November 2014. As
recently as November 2015,
it conducted a detailed
stress test that concluded
that Novo Banco was a
viable commercial bank.
While the bank was
required to raise €1.4bn
under the adverse stress
test scenarios, institutions
in this position are typically
given six to nine months to
meet their capital shortfall.
With Novo Banco, this
shortfall could easily have
been covered with private
sector solutions, be they
asset sales, equity raising
and/or partial debt
equitisation. This playbook
worked in the recent and
much more challenging
recapitalisation of the Greek
banking sector, which led to
an aggressive, but fair,
bail-in of senior creditors.
The new Portuguese
administration is not the
first government to resort
to asset confiscation and
populist expediency, as
Venezuela and Argentina
also belong to this club. The
important distinction is that
Portugal is a eurozone
member state, and its banks
are systemically important
and regulated by the ECB.
Thus, the Novo Banco
precedent is important for
European capital markets,
not just Portuguese local
markets, as the ECB in its
monetary policy role has
sought to ease credit
conditions for banks and
smaller companies. The
ECB’s actions, including
quantitative easing, are
having a positive impact on
conditions in peripheral
countries. It would be
perverse to put that at risk.
Indeed, it is no secret the
southern periphery of the
eurozone has a large
number of weak banks with
significant non-performing
loans on their balance
sheets. The Novo Banco
action sets a worrying
precedent that an arbitrary
and unfair confiscation of
investor assets is an
acceptable remedy to the
financial challenges
experienced by these banks.
It is a great shame that
five years after the
beginning of the eurozone
sovereign and banking
crisis, the eurozone is still
dealing with banking crises
in a manner that is
inconsistent, unfair and
amateurish. We collectively
— investors, bankers,
regulators and
governments — should
aspire to higher standards
and avoid populist short-
cuts that will result in
protracted litigation.
Private sector solutions to
recapitalise troubled
eurozone banks exist and
have worked in recent
months. Why change that
approach now?
If the ECB does not
support the Novo Banco
action, then there is time
for it, as banking regulator,
to take action.
If the ECB supports the
Novo Banco action, or is
not able or willing to act, all
investors in European
capital markets should
heed the warning.
Philippe Bodereau is
managing director and
global head of financial
research at Pimco
Capital markets
Nigeria plans return to bond issuance
Africa’s largest oil
producer tries to plug
$11bn budget deficit
MAGGIE FICK — LAGOS
ELAINE MOORE — LONDON
Nigeria is planning to make a comeback
on international bond markets two
years after its last sale of debt, as Africa’s
largest oil producer tries to plug an
$11bn budget deficit.
But during that time the cost of bor-
rowing in dollars has surged for devel-
oping countries, making any bond sale a
test of investor willingness to fund
emerging markets.
Last year Ghana had to offer 10 per
cent to borrow $1bn in 15-year debt, far
higher than expected, while Iraq,
Kurdistan and Pakistan were forced to
State-backed debt growth lifts default fears
Doubts increase over
government obligation to bail
out stressed borrowers
ELAINE MOORE
Investor fears that the bloated sovereign
debt market is beginning to pose risks to
the world economy could soon be exac-
erbated by an additional threat lurking
in the shadows of government finance.
Since the financial crisis, a hidden
pool of government-linked securities
has emerged which, thanks to its hybrid
status, has the potential to draw on
national resources yet rarely shows up
in national accounts.
Borrowers backed by the state —
including cities, local authorities and
fully or majority state-owned compa-
nies — comprise a vast and still growing
sector which is attractive to investors
because of the implicit assumption that
it will be bailed out in times of trouble.
Because the debt is not issued directly
by the state it is not always included in
official debt-to-GDP numbers. This
means it is not included in analysis of a
country’s solvency.
To understand the scale of the sector,
consider the gargantuan US mortgage
finance companies Fannie Mae and
Freddie Mac.
These government-sponsored enter-
prises were put into “conservatorship”
at the height of the financial crisis but
their debt was never absorbed on to
the US balance sheet because, the gov-
ernment said, the arrangement was
temporary.
Eight years on, the conservatorship
remains in place but the obligations are
still outside the official federal debt that
is calculated by the Department of the
Treasury.
The phenomenon is not confined to
the US. Mexican state-controlled oil
company Pemex, government-backed
Export Credit Bank of Turkey, the city
of Paris, Sri Lankan Airlines and Ger-
many’s development bank KfW are all
part of the same group.
In emerging markets alone, JPMorgan
estimates there is now $800bn of quasi-
sovereign debt in dollars and other for-
eign currencies.
What they share is the benefit of a
strong link to sovereign credit. Although
not always backed by a legal guarantee,
this link enables them to borrow money
on markets at lower rates than other
corporate debt issuers.
“This practice keeps the sovereign’s
official debt ratio low, thus facilitating
rethink borrowing plans as a slowdown bonds and equities has dropped to the
10% dropped. The budget deficit has swollen
in China, a rise in official US borrowing lowest levels since the financial crisis. to N2.2tn ($11bn), driving down the
costs and falling commodity prices Ms Adeosun did not specify the size or Yield Ghana had to naira and leading the government to
offer to borrow
diminished demand for their bonds. maturity of the eurobond but said the $1bn in 15-year debt impose measures to defend it, including
Undeterred, Africa’s largest economy possible return to international capital last year capital controls.
is finalising plans for an investor road- markets would be one of several ways Last year Nigeria was ejected from
show by the end of March, Kemi Adeo- Nigeria would borrow externally this influential indices of EM bonds by
sun, Nigeria’s finance minister, told the year. Last month Muhammadu Buhari, $1 bn
JPMorgan and Barclays, which said the
Financial Times. president, said Nigeria’s deficit would be Amount Nigeria country’s problems — and new foreign
raised in five and
“We’re looking to test the eurobond funded partly by domestic bonds and 10-year bonds on its exchange policies — had made transac-
market,” she said. “We think there’s partly from borrowing abroad. last outing in 2013 tions problematic for foreign investors.
appetite. We’re finalising plans for a “We’ve decided to divide [the deficit] Ms Adeosun said Nigeria had applied
non-deal roadshow in the first quarter.” down the middle,” Ms Adeosun said. for budget support from the World Bank
If successful it will be the first issu- “We recognise the need to stimulate the and the African Development Bank,
ance of external debt by Nigeria since economy and not crowd out the private adding that some other funding was
July 2013, when it raised $500m of five- sector.” She stressed the need not to likely to come from “export support
year bonds and $500m of 10-year increase interest rates by “borrowing projects” with “a couple of Exim [gov-
bonds, at yields of 5.38 per cent and 6.63 too much domestically”. ernment or semi-government agency]”
per cent respectively. Nigeria is rated BB minus by Fitch banks.
Prices for both have since fallen, Ratings and B plus by S&P, below invest- Citigroup and Deutsche Bank, which
pushing the yields to 8.59 per cent and ment grade. Its finances have come worked on Nigeria’s most recent sale of
7.19 per cent. Foreign investment in EM under acute pressure as oil prices have debt, declined to comment.
Analysis. Capital markets
When is debt not debt?
Countries with largest sovereign debt Government debt
Change 2012-15 Q2 ($bn)
Gross debt in 2015 ($bn)
1492
US 18,840
Japan 10,122
China 4,918
280
180
UK 2,547 Germany Japan
US UK India
Italy 2,421
Germany 2,385 -491
France 2,352
India 1,424
Canada 1,422
Brazil 1,258
-2525
FT graphic Sources: IMF; BIS Photo: Bloomberg News
its continued access to future borrow- mind over housing association debt, state of Carinthia is suffering the ill
‘It’s only ings,” wrote the United Nations Confer- deciding it should be included in sover- effects of offering collapsed local Hypo
when ence on Trade and Development in a eign debt calculations. Alpe Adria bank a guarantee. Carinthia
paper examining the sector last sum- Mexico includes state-owned energy cannot pay, and investors want the Aus-
default is mer. “Preliminary evidence suggests company Pemex in its calculations, but trian state to stand behind the debt.
looming that, since the global financial crisis, not debt borrowed by local govern- Austria has refused.
sovereign contingent liabilities have ments. Brazil’s partially state-owned “It’s interesting because sovereigns
and a grown exponentially . . . How these Petrobras is not included in Brazilian and quasi-sovereigns do not default
sovereign growing contingent liabilities may be debt-to-GDP figures. very often so it becomes a theoretical
starts to included in sovereign debt restructur- Lee Buchheit, who has written on con- exercise for investors to try to price that
ing is currently unclear.” tingent liabilities along with Mitu Gulati risk,” says Joe Kogan, head of emerging-
point that Charles de Quinsonas at M&G points at Duke University, says these differing markets strategy at Scotiabank, who has
there is no out that spreads of quasi-sovereign accounting treatments allow some sov- frequently written on the sector.
bonds above their respective sovereigns ereigns to raise capital on the strength of “In good times the spread between
actual have increased in emerging markets as their credit standing without visibly the two compresses, but recently there
guarantee concerns about corporate defaults rise. increasing the size of their stock of debt. have been specific problems at certain
In Latin America the average spread hit “From the sovereign’s standpoint, the companies and spreads at places such as
that things 286 basis points in late 2015, compared level of explicit support depends on Pemex have increased.”
can get with 98 basis points in Asia. what the market demands,” he says. The Organisation for Economic Co-
According to the World Bank, contin- “It’s only when default is looming and operation and Development points out
ugly’ gent liabilities are a source of risk in part a sovereign starts to point that there that this can skew markets by encourag-
because of the erratic way they are is no actual guarantee that things can ing investors to favour possibly weak
accounted for by governments. get ugly.” issuers with a strong sovereign backer,
In the UK, for example, the Office for Right now, this scenario is being which can then suffer sell-offs during
National Statistics recently changed its played out in Austria, where the Alpine periods of lower risk appetite.

Commodities Currencies

Nickel, zinc and copper follow in crude’s wake Pound is put under pressure from weaker oil
HENRY SANDERSON
The price of nickel fell to its lowest
since 2003 and zinc plumbed a six-year
low yesterday as the rout in global com-
modities deepened.
Investors have sold metals across the
board this year as volatility in China’s
currency and equity markets has
renewed concerns about the economy
of the biggest consumer of metals. The
oil sell-off has added to investor out-
flows from commodities.
Copper, widely seen as a bellwether
for growth in the global economy, hit
its lowest level since May 2009 at $4,354
a tonne.
Oil makes up the biggest portion of
most commodity indices. The Bloomb-
erg Commodity Index, which comprises
futures contracts of 22 materials, fell to
its lowest since 1999 yesterday.
“Low oil pulls metals lower,” said
David Wilson, analyst at Citigroup. “If
you’re bailing on commodities because
of oil you’re bailing on metals as well.”
A weakening of China’s currency has
boosted the dollar, which makes com-
modities more expensive.
Demand for metals is normally
weaker before the Chinese new year hol-
iday, which falls next month.
Nickel, used to make stainless steel,
has been particularly hard hit by weak
demand from end-users. Total inven-
tory on the London Metal Exchange and
Shanghai Futures Exchange grew to a
record 490,000 tonnes at the end of last
year, according to Citi.
Stainless steel consumers, which
make up more than 70 per cent of nickel
demand, were reluctant to hold inven-
tory as prices fell, Mr Wilson said.
About 80 per cent of global nickel
production is losing money and miners
have failed to cut production substan-
tially. Vale, the Brazilian miner, plans to
boost nickel production this year. Last
month Glencore, the third-largest pro-
ducer of nickel, said it might close its
Murrin Murrin mine in Australia.
In the case of copper, macro factors
have outweighed signs of strengthening
demand in China. Copper imports hit a
record in November and are likely to
show another increase in December
when China releases data.
But that has not changed the attitude
of investors. Shares in Freeport-
McMoRan, the largest US copper pro-
ducer, fell 20 per cent on Monday as the
price edged closer to a level last hit in
March 2009. “The $4,000 [a tonne] level
is the next psychological point that the
funds will seek to drive towards,” said
EdwardMeir,analystatINTLFCStone.
ROGER BLITZ
Sterling slid to its lowest level against
the dollar in more than five years yes-
terday, hit by a combination of weak
industrial output, falling oil prices and
worries about Brexit.
The pound joined the ranks of curren-
cies feeling the pressure of oil’s 18 per
cent fall since the start of the year. Its 2.4
per cent drop against the dollar makes
sterling one of the worst performing
main currencies.
Oil-linked currencies such as Russia’s
rouble, Brazil’s real and Norway’s krone
have started 2016 much as last year
panned out. A rouble rally yesterday did
little to alter sentiment that has already
taken 4.5 per cent off the value of the
Russian currency in barely a week and a
half of trading.
Emerging market currencies have
fallen 3 per cent so far this year, accord-
ing to JPMorgan’s index of the FX group.
The trigger for sterling’s drop of 1 per
cent to its lowest level since June 2010
against the dollar yesterday was data
showing the biggest drop in industrial
output in more than two years, pushing
back the prospect of a Bank of England
rate rise.
Strategists at Bank of America Merrill
Lynch said there were plenty of reasons
for prevarication by the BoE. The bank
has revised its forecast of annualised
inflation rising to 1 per cent with lower
oil prices seen delaying such an out-
come to August. “The sell-off has been
exacerbated in the first two weeks of
2016 against a backdrop of heightened
market volatility, exposing sterling’s
Achilles heel of its current account defi-
cit once more,” said BofA.
Marc Chandler at Brown Brothers
Harriman said: “The economy is slow-
ing, and inflation has yet to show
upward pressure. The pendulum of
market expectations continues to swing
away from a rate hike this year.”
Sterling was also off 1 per cent against
the euro to its lowest in nearly a year.
BNP Paribas strategists were slightly
more upbeat and predicted a rebound, if
only because sterling was “running out
of catalysts to move lower”.
The BoE, which meets tomorrow,
would probably be comforted in ster-
ling’s weakness, given the concern it
voiced last year about the currency’s
strength, said BNP.
Also weighing on sterling sentiment is
the risk of Brexit, which could lead to a
fall in sterling assets if the “Out” cam-
paign gathered momentum, said Alan
Wilde, head of global fixed income at
Baring Asset Management.
Wednesday 13 January 2016 ★ FINANCIAL TIMES 33

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Change on day
Jamie
Chisholm
Caution mounts as China moves 12pt semibold S&P 500 index
9.6pt regular Change on day
for 1,2,3
0.22%

unsettle and crude tests fresh lows

The so-called commodity currencies
are under the cosh as base metals
stumble and oil prices flirt with $30 a
barrel.
The Canadian dollar this week hit a
fresh 12-year low versus the
greenback. The Australian dollar is
back below 70 US cents and close to
its weakest since early 2009.
Then there’s the Norwegian krone.
Particularly sensitive to the price of oil,
the Nokkie sits near NKr8.90, its lowest
versus the buck for 14 years.
Forex strategists at RBC Capital
Markets say their — short term —
trade of the week is to expect further
falls for the Nokkie against its Swedish
peer, the NOK/SEK cross.
Norwegian inflation data this week
showed little need for tighter policy.
Indeed, the central bank governor said
that it was likely that he would cut
rates from 0.75 per cent in March.
Sweden’s inflation numbers are due
on Thursday. “In Sweden, markets are
already priced for a significant risk of
another rate cut (-7bp by June) and a
downside inflation surprise would have
little news value relative to an upside
surprise,” said RBC.
“NOK/SEK is completely neutral to
shifts in general risk appetite, which
we think is a desirable property given
the gyrations in Chinese equity prices.”
In addition, a recent pullback in the
Swedish krona relative to the euro
makes it less likely that the Riksbank
would intervene to soften the former,
reckons RBC.
On Monday, RBC went short
NOK/SEK at 0.9574. But a bounce for
Brent oil and that trade is at risk.
jamie.chisholm@ft.com
Norwegian krone
Against Swedish Krona (Skr per Nkr)
1.10
1.05
1.00
0.95
Jan 2015 Jan
2016
Source: Thomson Reuters Datastream
PBoC intervenes in
currency and oil nears $30
a barrel, leading to volatile
stocks and supporting
core government bonds
DAVE SHELLOCK
Sharp swings for oil prices and lingering
uncertainty over the outlook for China
made for another volatile session in US
and European equity markets as the
uneasy start to 2016 continued.
Sterling was a feature as weak UK eco-
nomic data helped drive it to a five-year
low against the dollar. Spanish sovereign
debt continued to underperform follow-
ing the formation of a Catalan govern-
ment at the weekend.
But the main market drivers
remained oil and China.
Crude prices neared $30 a barrel and
intervention by Beijing pushed the
onshore and offshore renminbi
exchange rates back to parity, according
to analysts.
Brent, the international crude bench-
mark, fell as low as $30.43 a barrel — the
cheapest in more than 11 years — before
rallying back to $32.38, only to retreat
again to $31.04, down 1.6 per cent on the
day. US West Texas Intermediate traded
in a similar pattern.
Ole Hansen, head of commodity strat-
egy at Saxo Bank, noted that crude
prices had dropped about a third since
the inconclusive Opec meeting at the
start of December, at which the cartel
stuck with its policy of not constraining
output.
“The accelerating sell-off seen during
the past week has moved the price
closer to levels below where bankrupt-
cies in the energy sector will rise, junk
bonds will default and production even-
tually will be cut,” Mr Hansen said.
“Goldman Sachs has during the
past few days been joined by others
China’s currency war explained: FT.com/video
The FT’s Roger Blitz explains the dynamics of the fall of the
renminbi and how China’s central bank is trying to ease it
highlighting the risk of an extension
down towards $20 a barrel.
“Production is too high at this
moment in history, and when adding
the additional worry about the
demand prospects from China we
have an almost perfect storm of nega-
tive fundamentals.”
But the latest developments in China
were slightly more reassuring — on the
surface at least.
“The People’s Bank of China has
drawn a line in the sand and has
stepped up efforts significantly to
halt the depreciation of the onshore
and offshore renminbi versus the US
dollar,” said Allan von Mehren, chief
analyst at Danske Bank. “Intervention
continued [on Monday] and overnight
in the offshore market. As China
refrains from adding back the liquidity
it drains through the intervention, off-
shore money market rates shot higher
again today.”
The Hong Kong interbank offered
rate (Hibor) rocketed to a record
66.8 per cent from an already elevated
13.4 per cent on Monday.
“It makes it very expensive to borrow
to short the offshore versus the dollar,”
Mr von Mehren said. “The offshore/
onshore spread collapsed back to zero in
response.”
Despite the more stable tone to the
renminbi after its sharp depreciation,
analysts remained cautious.
2050
2000
1950
1900
Dec 2015 Jan
2016
“The heavy-handed approach [by US equities Wall Street pared early
policymakers] will not be without gains as participants focused on a
costs,” said Divyang Shah, global strate- fresh retreat for oil prices and awaited
gist at IFR Markets. further indications on how the
“Firstly, it will likely hamper the corporate earnings season will unfold
development of the onshore abroad via
the offshore as investors fear a repeat of FTSE 100 index
such an episode; and secondly, it does Change on day 0.98%
not deal with the root cause of the crisis 6400
that rests on worries over the outlook
for the economy. 6200
“Thirdly, currency depreciation 6000
expectations remain beyond the specu-
5800
lative community, with households and Dec Jan
2015
firms still looking to buy dollars.” 2016
European equity markets appeared UK equities Retailing stocks were
to welcome the more stable tone to the among the day’s biggest gainers after
Chinese currency, and a modest 0.2 per sales figures from Wm Morrison beat
cent rise for the Shanghai Composite forecasts and industry data pointed to
index. a strong Christmas period for Tesco
The Euro Stoxx 600 index rose as
much as 1.9 per cent before finishing Eurofirst 300 index
0.9 per cent higher as oil’s early strength
Change on day 1.05%
evaporated. By midday in New York, the 1450
S&P 500 was up just 0.2 per cent at 1,927,
well off an earlier high of 1,947.38. 1400
Stock markets’ cautious tone offered 1350
support to US and German government
1300
bonds. The yield on the 10-year Treas-
Dec 2015 Jan
ury note was down 3 basis points at 2.13 2016
per cent while that on the 10-year Ger- European equities Positive corporate
man Bund fell 1bp to 0.53 per cent. earnings updates offered support to
Spain’s 10-year sovereign yield rose a the region’s markets but the Eurofirst
further 3bp to 1.83 per cent after Mon- 300 ended well off the day’s best as a
day’s 8bp jump. At the weekend Catalo- rally for oil prices went into reverse
nia installed a regional president, boost-
ing the pro-independence movement,
according to analysts. Nikkei 225 index
Meanwhile, the dollar was broadly (’000) Change on day 2.71%
19.0
higher, notably so against sterling, after
soft UK industrial production figures
18.0
were viewed as a further reason for the
Bank of England to hold off on raising
interest rates. 17.0
Dec 2015 Jan
The pound was down 0.9 per cent at 2016
$1.4414, the lowest since mid-2010. Japanese equities The Nikkei fell for a
A firm dollar helped push gold down sixth straight session and closed at its
$7 to $1,086 while copper hit a fresh six- lowest for more than three months as
year low in London amid continued Tokyo reopened after a long weekend
worries about Chinese demand.

TalkTalk growth of 0.2 per cent, against forecasts

London
BHP hits 10-year low
as fears deepen over
dividend payment
Bryce Elder
Dividend fears brought BHP Billiton to
a 10-year low yesterday.
The miner looked certain to halve its
dividend at full-year results next
month, which would be its first cut in at
least four decades, analysts said. The
stock is, theoretically, the FTSE 100’s
biggest income generator with a
prospective yield above 10 per cent.
But BHP’s earnings were negative at
spot prices, making a cut “inevitable”,
said Barclays. Even a halved dividend
would not be covered by free cash flow
for at least three years, meaning deeper
cost-cutting was also required, it said.
HSBC also forecast that BHP would
cut by 50 per cent but saw scope for
acquisitions, such as buying Teck’s stake
in the Antamina copper mine in Peru.
Merrill Lynch last week argued that
BHP should launch a pre-emptive rights
Share price (pence) of a 2 per cent decline. Trading Directory
400 Morrison rose 8.7 per cent to 165.5p
and J Sainsbury took on 3.2 per cent to
300
251.2p. Tesco jumped 6.7 per cent to
200 155.2p, helped by Kantar industry data
100 suggesting its Christmas sales had been
Jan 2015
Source: Thomson Reuters Datastream
Jan
2016 much stronger than expected.
In consumer goods Reckitt Benckiser
Day's added 1.7 per cent to £60.76 with
Indices
FTSE 100
Close
5929.24
change
57.41
JPMorgan Cazenove positive on the idea
that it might bid for Pfizer’s consumer
FTSE 250
FTSE 350
16687.91
3323.96
29.59
27.47
health unit.
The deal made sense on a price tag of
FTSE All-Share 3277.84 26.12 between £9bn and £13bn funded either
FTSE All-Share Yield 3.92 -
entirely with debt or via the disposals of
FTSE 100 Futures 5875.50 44.50
Reckitt’s food and home operations,
10 yr Gilt Yield
20yr Gilt All-Share Ratio
2.53
0.63
-0.29
-
said JPMorgan.
Drugmaker Shire rebounded 4.8 per
cent to £41.14, having slid on Monday
issue to fund opportunistic acquisitions after it set out the terms of its Baxalta
from distressed peers. takeover. One concern was that the
BHP ended 2.9 per cent lower at acquisition would make Shire’s stock
617.9p as oil and mining stocks missed buyback programme incompatible with
out on a wider market rally. US tax law.
The FTSE 100 was up 1 per cent, Credit Suisse, upgrading Shire to
ahead 57.41 points to 5,929.24, but was “outperform”, said investors were right
off its session highs as Brent threatened to be concerned about the tax
to break below $30 a barrel. implications and competition in
But Vedanta bounced from a record haemophilia drugs. But allowing for a
low, up 12.7 per cent to 234p, after news 15 per cent discount against the
that it had offered to buy back $500m of European sector still put Shire shares on
2016 bonds triggered a short squeeze. a target of £50, the broker said.
About 15 per cent of Vedanta shares TalkTalk hit a three-year low, down
are on loan to short sellers, who have 6 per cent to 189.5p, after JPMorgan
been betting on the failure of its plan to downgraded to “neutral” in a telecoms
release cash trapped in its Cairn India oil sector review. The broker trimmed its
subsidiary. revenue forecasts for TalkTalk by 1 per
Grocers led the risers after Wm cent and edged costs higher, which
Morrison began the sector’s update resulted in earnings downgrades of
season by reporting like-for-like sales about 30 per cent.

$695m, exceeding Wall Street fell sharply in midday trading. US crude

Wall Street
Lululemon on rise
after holiday sales boost
Adam Samson
Lululemon Athletica, the maker of high-
end sportswear, rallied yesterday after
providing an upbeat sales outlook for
the key holiday quarter.
The company said late on Monday
that sales for the three months to the
end of January were “exceeding
expectations”.
The company now predicts fourth-
quarter sales in the range of $690m to
expectations of $679.3m.
Lululemon’s shares rallied 11.8 per
cent to $61.20, cutting the 12-month loss
to 1.7 per cent.
At the other end of the spectrum,
Alcoa shares fell after the aluminium
maker posted mixed fourth-quarter
results after the closing bell on Monday.
The group swung to a loss of $500m,
from a profit of $159m in the same
three-month period in 2014. The results
included a $565m hit mainly due to
plant closures and income tax charges.
Sales slipped 17.8 per cent to $5.2bn,
missing expectations of $5.3bn.
Adjusted earnings per share clocked in
at 4 cents a share, topping estimates by
two cents.
Alcoa’s shares tumbled 8.5 per cent,
extending their fall over the past year to
55.4 per cent.
Freeport-McMoRan, a large
copper miner, also sold off, sliding
10.6 per cent on the day to $3.86.
The energy sector also dipped,
reversing course after starting the day
with a solid advance.
The culprit was crude oil prices that
fell 2.7 per cent to $30.55 while Brent
crude skidded 1.9 per cent to $30.94.
Marathon Oil, an exploration and
production company, dropped 4.8 per
cent to $9.16. At the same time, Kinder
Morgan, an energy infrastructure
company, dropped 2.1 per cent to
$13.86.
Starbucks, the coffee chain, got a lift
after it reaffirmed its commitment to
the China market.
The shares rose 2.5 per cent to
$59.27, extending a 12-month advance
to 44.9 per cent.
Anthem said it expected adjusted
earnings per share to exceed $10.80
next year, up from an estimated $10.16
this year. That compared with Wall
Street expectations of $10.86 for 2016.
The health insurer is in the process of
acquiring Cigna in a $48bn deal. The
company’s shares climbed 5.3 per cent
to $135.17 yesterday.
In midday trading, the S&P 50 rose
0.3 per cent to 1,928.61, the Dow Jones
Industrial Average climbed 0.2 per cent
to 16,429.47 and the Nasdaq Composite
advanced 0.7 per cent to 4,669.98.
34 ★ Wednesday 13 January 2016

INSIGHT Analysis. Commodities

Henny
Sender
Crude oil price: the bull versus the bear
Experts drill down to details of Crude oil
$ per barrel
global supply and demand —
Panic over renminbi’s but cannot agree on future
120
100

fall is overdone given ANJLI RAVAL AND NEIL HUME

80

its transition status Oil’s dire performance since the start of

the year continued yesterday as prices
Brent
WTI
60
40
of benchmark Brent crude and US West 20
Texas Intermediate flirted with $30 a 2014 15 16

I
n December $108bn left China, with capital outflows barrel. Concerns about China’s econ- Global supply and demand
marking an all-time monthly record. After adjusting omy, whose growth led a surge in balances
for changing foreign exchange values, the outflow was demand in the past decade, together
Until Q4 2016 (mb/d)
an even more massive $126bn. China’s reserves have with still robust US production and a
fallen about $700bn since the June 2014 peak of jump in output from Opec, has taken Demand Implied stock
Supply change
$3.99tn, the first annual decline. prices to levels last seen more than 10
Transitions are always dangerous times, and China’s years ago. But where do they go next? 98 3.5
shift to a more market-based forex regime seems particu- 96 2.5
larly fraught. The tension has been seen in the increasingly Bear Case: Ed Morse, global head of 94 1.5
wide gap — nearly a full percentage point before it con- commodities research, Citigroup 92 0.5
verged abruptly yesterday — between the controlled It would take an unusual series of supply 90 0
onshore rate and the more market-determined offshore disruptions to change this course of 88 -0.5
rate in centres such as Hong Kong (where renminbi depos- price behaviour. In the short-run the 86 -1.5
its are down below 10 per cent of total deposits). market outlook for oil is fairly bleak. 84 -2.5
Concerns about the direction of China’s currency are After a year in which inventories proba- Q1 Q3 Q1 Q3 Q1 Q3
understandable. The potential ripple effects of any plunge bly grew at 1.4m barrels a day, stockpiles 2009 2010 2012 2013 2015 2016
in the renminbi are significant, both for emerging markets continue to grow as demand remains Sources: Thomson Reuters Datastream; IEA
in Asia and Latin America, and for developed markets. sluggish against the backdrop of a global
The central bank’s efforts to orchestrate an orderly and economy growing more slowly than
measured decline have probably already diminished Bei- anticipated amid flattening demand Ed Morse, left, technologies and lower service costs the way down to $10 a barrel. That and should help bring the market into
jing’s buying of US Treasuries, and led to lower orders for from China for petroleum products. and Paul have ushered in a period of severe cost should be silly enough for everyone. balance by April, then into a significant
US construction equipment and German cars. On a macr- On the supply side, in the non-Opec Horsnell hold deflation that is not likely to abate soon. But there is a very low buffer of spare deficit for the second half of the year.
oeconomic level, a weaker renminbi means deflationary countries responsible for most of the sharply On the demand side, global energy sustainable capacity — at around 1 per But the dramatic reduction in con-
forces globally will be more virulent, with the competitive- supply growth since 2010, production contrasting intensity in general and oil intensity in cent — and a high level of unexpected ventional non-Opec output will mean it
ness of other markets undercut. remains robust. Within Opec, Saudi views on the particular are rapidly declining as a supply outages, of which Libya is the will take many years to turn it back on.
Yet the panic is probably overdone, and a strong case can Arabia has decided for the long run to future of oil share of GDP. Oil is quickly losing its largest single piece. But the market This is a bigger than usual bust, and will
be made that the fall will be limited. Yes, the renminbi shore up its market share even as com- prices — John monopoly as a transportation fuel in a seems more concerned about this sup- involve a bigger than usual boom when
has started the year by weakening against a mostly petition has grown, with Iraqi produc- Cobb/Bloomberg
more environmentally sensitive world. ply coming back, so the geopolitical pre- the legacy of $300bn of investment cuts
strengthening US dollar, but it tion soaring and Iran set to re-enter Despite a world awash with an abun- mium in prices is almost zero. We is fully felt in 2017 and beyond. The
has suffered less against a markets as sanctions are lifted. dant and cheaper supply of oil, the value expect the speed and the size of the speed of the US production drop could
trade-weighted basket.
When China was As stocks of crude and petroleum for a “petrostate” now appears to be return from outages to disappoint. surprise everyone, as will the time it will
In recent years the redback growing more products increase, the industry appears greater if it is produced rather than left Saudi Arabia could balance the mar- take for US shale to regain the previous
has moved in tandem with the to be running out of storage, which will in the ground. A key part of this new cal- ket instantly, but it does not want to output peak. We also think the relative
greenback as the latter has
vigorously, the probably further weaken oil prices, culation stems from the dynamics of without a coalition of Opec and non- lack of extra Opec output will surprise.
risen. Indeed just before the link to the dollar which could fall as low as the $20 range. new shale-sourced oil and gas. Opec producers. In the absence of that, A year ago, expectations for Chinese
renminbi’s 1.5 per cent drop When the market rebalances, condi- non-Opec supply will have to rebalance oil demand were very pessimistic, with
against the dollar last week
mattered less tions look likely to be dramatically dif- Bull Case: Paul Horsnell, head of com- the market, which we expect to fall by most estimates looking for a sharp 2015
analysts at Lombard Street ferent. High prices early this century modities research, Standard Chartered over 1m b/d in 2016, with the largest slowdown to about 2 per cent growth.
Research in London estimated that it was 10 to 15 per triggered exploitation in oil sands, deep The market is not trading on the basis of slice of that being US shale oil. US crude Actual growth was above 6 per cent. We
cent overvalued. water and shale rocks. Each turned out any fundamentals, so there is no solid oil production is already down over expect China’s oil demand growth to
A few months ago, at its peak, the renminbi had to be incredibly extensive and new short-term floor at all. It could trade all 500,000 b/d from its April 2015 peak outperform again this year.
strengthened 50 per cent against the yen. In recent days it
has lost value against the Japanese currency. But that
decline is nothing when contrasted with the appreciation
of the past decade. The People’s Bank is justified in trying Currencies
to move to a renminbi measured against a basket of cur-
rencies of its trading partners rather than against a dollar
whose value is rising.
When China was growing more vigorously, the linkage to
Onshore and offshore
the US dollar mattered less. But as the mainland economy
slows and with the US expected to strengthen, that nexus
rates return to parity
has become more of a challenge. The US is tightening mon-
etary policy while China needs to ease. In real terms inter-
est rates are way too high, and the burden of debt servicing JENNIFER HUGHES per cent. In a statement to
for many cash-strapped enterprises is too heavy. HONG KONG the Financial Times, the
Moreover, precisely because interest rates were so high China’s two renminbi rates Hong Kong Monetary
and dollar rates that much more attractive to borrowers, returned to parity for the Authority said it would
Chinese enterprises borrowed in the offshore dollar mar- first time in two months, less closely monitor the offshore
ket. They are now prudently repaying that debt. In part than a week after a record markets and had reminded
this is the reversal of a carry trade that was profitable just gap between them threat- domestic banks to manage
two years ago — borrowing cheap dollars and putting them ened to derail the country’s the related risks carefully.
into more lucrative renminbi assets was widely regarded currency reforms. The sharp rise in the cost of
as a one-way, riskless trade. sourcing renminbi offshore
But on top of that, every year citizens are allowed to The removal of the “one cur- — a byproduct of the PBoC’s
buy $50,000 in foreign exchange. So since the new year rency, two rates” gap currency-supporting inter-
many have done just that. between offshore markets vention — will act as an extra
The renminbi is not a real international currency yet. and more tightly controlled deterrent to speculators bet-
After the new Argentine government lifted capital controls onshore renminbi trading ting on a weaker renminbi.
last month, leading to a fall in the peso, officials said they came as the State Council “The authorities’ liquidity-
were selling their renminbi reserves. That was not because established a new depart- tightening steps likely have
they expected the Chinese currency to plunge but because ment to liaise between its made investors more wary of
central bank intervention is still all about the dollar — the various financial regulators, shorting the offshore ren-
only true reserve currency. according to two people minbi, at least in the near
But that will change in a few years, which is why the familiar with the initiative. term,” said Barclays analysts.
IMF has decided to include the renminbi in its special Its aim is to facilitate infor- Intense international
drawing rights, its international reserve asset. In time the mation sharing and co-oper- interest in the renminbi
renminbi will become a real international currency, with a ation between the central comes as China seeks to lift
heft commensurate with China’s weight in international bank, finance ministry and the use of its currency glo-
trade. That means it will be a bigger part of international commissions that regulate bally, and to let it respond
monetary arrangements, and its value will be under- banks, insurance companies more to market forces.
pinned by central banks. and stock exchanges. A bungled regime-change
So while the renminbi is no longer a one-way upward Attention this week has for the currency in August
bet, beware of being whipsawed in the year of the monkey. turned to the offshore ren- widened the gap between
minbi, whose weakness com- onshore and offshore rates as
henny.sender@ft.com pared with the onshore rate investors read the 2 per cent
implies that investors were devaluation that accompa-
betting on faster renminbi nied the moves as a sign of an
depreciation than previously unexpectedlyweakeconomy.
thought — or than Beijing Since August the PBoC has
was comfortable with. repeatedly tried to get mar-
More comment and data on ft.com Yesterday an apparent kets to measure the renminbi
intervention by the People’s against a basket of currencies
Bank of China pushed short- ratherthanjustthedollar.
Y Fast FT Our global economies, headed term borrowing costs to Late on Monday the PBoC
team gives you market- by Brazil, Russia, India record levels in Hong Kong sought to clarify its position
moving news and views, and China. and the renminbi to its in online comments posted
24 hours a day, five days ft.com/beyondbrics strongest levels against the by Ma Jun, chief economist at
a week. ft.com/fastft US dollar this year, at its research bureau.
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a Rmb6.5878 by mid-after- “Some of the market par-
irreverent financial blog. look at what is driving noon. Onshore the pair ticipants recently tried to
Join Paul Murphy and the global currency traded at Rmb6.5764. determine the PBoC’s inten-
Bryce Elder for the daily market. ft.com/podcasts Last week it touched a low tions by looking at the
Markets Live session at of Rmb6.7377 offshore, 2.3 change in the fixing rate ver-
Y Lex Video Analysis per cent softer than the sus the previous day,” he
11am. ft.com/alphaville
and opinion from the onshore rate. Yesterday the said. “[They] should look at
Y beyondbrics News and team on the hot issues overnight Hong Kong inter- the differences between fix-
comment from more affecting companies and bank offered rate (Hibor) set ing and the closing prices,
than 40 emerging markets. ft.com/lexvideo a record, rocketing from 13.4 and the changes of the cur-
per cent on Monday to 66.8 rency basket.”