THURSDAY 19 MAY 2016 WORLD BUSINESS NEWSPAPER EUROPE

Make the effort Play time Oiling the machine

How to master a foreign language The music industry takes on YouTube Saudi Arabia’s march towards life
MICHAEL SKAPINKER, PAGE 10 JOHN GAPPER, PAGE 9 beyond oil — BIG READ, PAGE 7

Royal respite Briefing

sought from i Fed minutes open door to June rate rise
Minutes from the Federal Reserve’s April
battle over EU rate-setting meeting showed most policymakers
believed a rise would be “appropriate” in June if US
economic data continue to strengthen.— FT.COM
Queen Elizabeth leaves the House of
Lords in London yesterday after leading i Spain and Portugal win deficit reprieve
the annual State Opening of Parliament Brussels has put off a decision to propose the first
in which she reads out the government’s fines for missing eurozone budget deficit targets,
legislative programme for the next pushing back the decision until after Spanish
parliamentary term at a joint session elections that take place next month.— PAGE 4
of the upper house and the House of
Commons. i Japan beats growth expectations
With his Conservative government Growth of 1.7 per cent has beaten forecasts, with
deeply split ahead of next month’s refer- resilient domestic demand allowing the economy to
endum on Britain’s EU membership, shake off the effects of a stronger yen and slowing
prime minister David Cameron China.— PAGE 2; EDITORIAL COMMENT, PAGE 8
attempted to bring his party together
behind a set of social reforms “to spread i French minister pressed over presidency
opportunity”. The Queen’s Speech also Economy minister Emmanuel Macron
included a transport bill promising to has come under pressure to show his
help the spread of driverless cars, hand over whether he will stand for
drones and commercial spaceports. the French presidency as questions
Boost for driverless cars page 2 swirl over his loyalty to François
Richard Pohle/ Reuters
Hollande.— PAGE 4

i China’s Midea targets German robots

Trump fears push business to ditch

The Chinese home-appliance maker has made an
offer for German automation group Kuka — which
makes robots used by Audi, BMW and Boeing —
that values it at €4.6bn.— PAGE 13; LEX, PAGE 12

Republicans in favour of Clinton

i EU migrant figures fuel UK vote debate
The British immigration debate has been fuelled by
data showing the number of EU nationals working
in the UK has hit a record 2.1m, weeks before the
country votes on whether to leave the bloc.— PAGE 2

i Media sackings highlight Putin’s grip

3 Washington lobby groups back Democrat 3 Alarm over tycoon loosens traditional ties
BARNEY JOPSON — WASHINGTON
Lobbying groups representing a wide
range of US companies would prefer
Hillary Clinton in the White House to
Donald Trump by a ratio of two to one,
in a sign of how the Republican is strain-
ing ties between the party and its tradi-
tional base.
In the most comprehensive survey of
business views on the US election, half
the trade groups that responded to the
Financial Times said they would break
from the country’s traditional party of
business to back Mrs Clinton despite
strong reservations about the Demo-
cratic candidate set to face Mr Trump.
Only a quarter of respondents backed
Mr Trump, who has run a caustic cam-
paign marked by populist attacks on big
The sacking of three top editors from the RBC group
after an article about a lavish Black Sea estate
known as “Putin’s Palace” have highlighted the
business. But support for Mrs Clinton will we be able to communicate with the Mr Reinsch said: “The other thing Russian president’s push to quash dissent.— PAGE 2
was often lukewarm, sparked more by president? Or are we dealing with some- [companies] want is predictability,
alarm over the likely Republican nomi- body whose mind is already made up?” which is the antithesis of Trump, who
nee than enthusiasm for her. The FT polled 53 Washington-based brags about being unpredictable.” Datawatch
Bill Reinsch, who has represented trade associations, receiving responses Mr Trump, a billionaire property
companies ranging from Cisco Systems from 16 which together lobby for nearly developer, has trounced his party rivals
to General Electric and Procter & Gam- 100,000 businesses with combined ‘Clinton in part by impugning an establishment Interest payments on Over 4 per cent of
ble as head of the National Foreign annual revenues of more than $3.5tn. A alliance between Republicans and busi- government debt Portugal, Italy and
Trade Council, said Mrs Clinton would quarter of respondents said they could understands ness groups, which are accustomed to % of GDP, 2015
Greece’s GDP
went on public
be best for his members, though he not decide which candidate would be the issues financing campaigns and having a nom- 0 1 2 3 4 debt interest
called her the “less bad” choice. best for business because it was too inee who wants open trade, lower defi- Portugal
“I hate to put it in negative terms but early to judge their policy platforms, or the best and cits and smaller government. Italy
payments last
year — double the
it’s because the other two are so terri- replied “none of the above”. The Manhattan mogul has eschewed Greece
ble,” he said, referring to Mr Trump and Several trade groups expressed dis-
will be the those positions, instead tapping into the
Spain amount paid in
US the average of the
Bernie Sanders, the socialist vying for may that for the first time in living best listener’ economic discontent of voters who feel UK OECD countries
the Democratic nomination. memory they faced a presidential race they were duped by the argument that OECD and more than
Bill Reinsch France
“I think Clinton is the one of the three without a clear pro-business candidate, National what is best for big business is also best Germany three times that of
that understands the issues the best and dashing their hopes after nearly eight Foreign Trade for the middle class. Japan Germany
will be the best listener. One of the years of what they see as over-regula- Analysis page 3 Source: OECD blogs.ft.com/ftdata
Council
things companies really care about is tion by Barack Obama’s administration. Letters page 8

EU threat to force Netflix and Amazon

to observe 20% European content rule
DUNCAN ROBINSON AND ALEX BARKER But a draft of the European Commis- over in new productions. For streaming
BRUSSELS
sion proposal, seen by the Financial services, the figure is barely 1 per cent.
Netflix and Amazon’s video-streaming Times, would put the streaming services Netflix has warned that rules setting
service could be forced to devote “at — dominated by US companies — into minimum European content would cre-
least” 20 per cent of their movie cata- the same regulatory regime as broad- ate a “perverse incentive” for operators
Buffett protégés behind logues to European films and TV shows casters, obliging them to “contribute to buy cheap titles. “Rigid numerical
Berkshire’s Apple stake as part of an overhaul of EU broadcast- financially” to production of European quotas risk suffocating the market for
ing rules. works in countries where such levies are on-demand audiovisual media serv-
Buffett protégés i PAGE 14 placed on national broadcasters. ices,” Netflix told the commission.
Under a Brussels plan to be unveiled France has led a charge within the EU Likewise, rules on prominence of
next week, video-on-demand groups to allow for cultural exceptions to European content would interfere with
Austria €3.60 Macedonia Den220 would also be obliged to “ensure promi- broadcast and movie regulations, going the “personalised” approach to provid-
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 nence” of European works, potentially so far as forcing Brussels to cut audiovis- ing on-demand video services, accord-
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 forcing them to replace valuable space ual issues from a trade deal under nego- ing to the video streaming company.
Cyprus €3.50 Norway NKr34
Czech Rep Kc100 Oman OR1.50 on their homepages given to Hollywood tiation with the US. Netflix declined to comment yester-
Denmark DKr32 Pakistan Rupee 280
Egypt E£20 Poland Zl 18 blockbusters with French cinema. The new proposals come as part of a day. Amazon could not be reached.
Finland €4.10 Portugal €3.50
France €3.60 Qatar QR15 Such services are not at present cov- wider plan to increase investment in the Companies such as Netflix have
Germany €3.60 Romania Ron17 ered by legislation that requires EU’s television and film industry. Tradi- started work on more original European
Gibraltar £2.70 Russia €5.00
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
national broadcasters to keep 20 per tional broadcasters invest more heavily content with mixed success: its recent
India
Italy
Rup195
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
cent of their content European in order than their online peers, according to an blockbuster Marseille — starring Gérard
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
to make sure that viewers are not over- EU study. Broadcasters such as the BBC Depardieu as the mayor of the French
Kuwait
Latvia
KWD1.50
€6.99
Switzerland
Tunisia
SFr5.90
Din7.50
whelmed by US imports invest roughly 20 per cent of their turn- port — has been panned by critics.
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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9 770174 736142
2 ★
Consumption
Japan growth rise eases pressure on Abe
Recession avoided as data
suggest economy has seen
off slowdown in China
ROBIN HARDING AND PETER WELLS
HONG KONG
KANA INAGAKI — TOKYO
Japan’s economy grew at an annualised
rate of 1.7 per cent in the first quarter of
2016, easily beating expectations of a
0.3 per cent rise, in a big boost to the
country’s policymakers.
Rising gross domestic product
reverses a contraction in the fourth
quarter of 2015 and means Japan has
avoided another technical recession,
defined as two consecutive quarters of
negative growth.
The faster than expected pace of
growth suggests the Japanese economy
is managing to shake off the effects of a
Russia sackings highlight erosion of free speech
Kremlin denies forcing hand
of the country’s sole remaining
independent news group
MAX SEDDON — MOSCOW
At an awards ceremony late last year,
Mikhail Prokhorov, the Russian oli-
garch, joked that the hard-hitting inves-
tigations by his RBC media group into
President Vladimir Putin’s inner circle
were causing him more trouble than
they were worth.
“I read RBC every morning and think,
‘Who am I going to get angry phone calls
from today?’” he joked, according to
several who were in attendance.
On Friday, tensions at the heart of
Russia’s last remaining independent
news organisation burst into the open
with the sacking of RBC’s three top edi-
tors under what employees say was
pressure from the Kremlin. Their dis-
missal, which prompted more than a
dozen journalists to quit in protest, is
the latest incident in a long erosion of
media freedom under Mr Putin as he
tightens the screw on dissent.
The trigger for the departure of the
highly respected Elizaveta Osetinskaya,
editor-in-chief of RBC group, Maxim
Solyus, editor of its newspaper, and
Roman Badanin, web editor, was an arti-
cle — still available online — about plans
for an oyster and mussel farm next to a
billion-dollar Black Sea estate popularly
known as “Putin’s Palace”.
Before that, months of investigations
into how Mr Putin’s family and friends
accumulated their vast fortunes had led
even RBC reporters to question how
long it would be before it became the lat-
est media outlet to be brought to heel.
Nikolai Molibog, RBC chief executive,
says he and the sacked editors “failed to
reach a shared opinion on a number of
important issues” and Mr Putin’s
spokesman says the idea that the Krem-
lin put pressure on Onexim, Mr
Prokhorov’s holding company, to fire
the trio is “absurd”.
But RBC last month became the only
significant Russian outlet to cover the
Panama papers — including Mr Putin’s
ties to Sergei Roldugin, a musician who
was revealed to have funnelled $2bn
through offshore accounts. Special
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FINANCIAL TIMES Thursday 19 May 2016
INTERNATIONAL
GLOBAL INSIGHT
LATIN AMERICA
Joe
Leahy
slowdown in China and a stronger yen — unless there was a serious economic But that was partly offset by falling
at least for now — with domestic shock. But he added: “We need to pay investment, which knocked 0.9 per-
demand having more momentum than
previously thought.
Robust growth data are likely to mean
careful attention to conditions in China
and emerging markets as well as volatil-
ity in the markets.”
centage points off annualised growth.
The rising yen is discouraging busi-
nesses from adding new capacity at
Brazil hopes Temer’s
a smaller fiscal stimulus by the govern-
ment of Prime Minister Shinzo Abe, ‘We need to
The growth data will give heart to the
Bank of Japan — suggesting the econ-
home and the BoJ’s move to negative
interest rates, at minus 0.1 per cent, in
economic superstars
which was poised to act if the data had
been bad.
The government has already
pay careful
attention to
omy is growing faster than its long-run
trend of about 0.5 per cent — although it
is unlikely to have much direct effect on
January is yet to revive their appetite for
investment.
Japan’s initial GDP data are notori-
will carry weak team
announced a ¥780bn ($7bn) supple- monetary policy. The BoJ is still under ously unreliable, and revisions often
mentary budget to help reconstruction
conditions pressure to ease because of the rising change the picture substantially. Mean-
in China
A
after a recent earthquake on the south- yen and the weakness of inflation. while, analysts cautioned that the lexandre de Moraes seemed to confirm scep-
ern island of Kyushu but it is also plan- Consumption contributed 1 percent- strong figures were unlikely to be repli- tics’ worst fears this week about the corrup-
ning a further stimulus of several tril-
and age point to annualised growth, govern- cated in the second quarter. tion-fighting credentials — or lack of them —
lion yen. Stronger growth data also emerging ment consumption added 0.6 percent- Takashi Miwa, chief economist at of the new Brazilian government formed by
reduce the need to delay next year’s age points and trade chipped in 0.8 per- Nomura, said that with a slower than interim president Michel Temer.
planned rise in consumption tax from
markets as centage points of growth. expected recovery in China and other Mr de Moraes, the new justice minister, said Brasília
8 per cent to 10 per cent. well as The stronger pace of consumption is overseas economies, Japan was likely to might ignore tradition and not appoint as attorney-general
Following the data, Nobuteru Ishi- particularly encouraging, suggesting revert to flat or negative growth in the the candidate elected by Brazil’s independent prosecutors.
hara, economy minister, reiterated that
volatility in higher wages are turning into spending second quarter. His remarks to Folha de São Paulo newspaper raised
the consumption tax would go ahead markets’ at the shops. Editorial Comment page 8 fears that Mr Temer might already be looking to nobble
the independent prosecutors’ office. This was one of the
main institutions behind a sweeping probe into state-
owned oil company Petrobras that helped precipitate the
Media. State censorship impeachment of his predecessor, Dilma Rousseff, and has
implicated scores of politicians, including some in Mr
Temer’s government. In the event, Mr Temer’s office hur-
riedly repudiated the minister’s comments, assuring he
would appoint the prosecutors’ choice.
The brief controversy underlined the dilemma facing
Mr Temer: with his cabinet appointments, he is trying to
balance the demands of the multiple parties that brought
him to power against public expectations.
Mr Temer gained office through the suspension of Ms
Rousseff last week ahead of an impeachment process that
might last up to six months. Elected as vice-president to
Ms Rousseff, he has no electoral mandate to run the coun-
“ The publication try. This tightrope act might explain the mixed reception
to his cabinet appointments. The most severe criticism has
became a red rag come from Brazilians appalled to see a cabinet composed
entirely of white males for the first time in years.
because of the “For a moment, it
offshore [Panama “ looked like we had retro-
gressed to the start of the
He must perform
papers] coverage last century,” wrote Luiza on the economy
Nagib Eluf, a columnist.
On corruption, Brazil’s
or Brazil will
bar association decried find a way to
the appointment of seven
ministers who have been
dispose of him
cited in the Petrobras
investigation. Three of them, including planning minister
Romero Jucá, are under formal investigation. Mr Temer
himself has been mentioned in the probe.
Such demands are unlikely to sway Mr Temer, however.
He will be reluctant to upset the delicate coalition he has
assembled in congress to support his nascent administra-
tion. Indeed, he knows this support is crucial if he is to
achieve what most perceive as the main task of his emer-
gency government — turning round Brazil’s sick economy.
With gross domestic product plummeting at a rate of
4 per cent a year, unemployment rising into double digits
and the fiscal deficit reaching alarming levels, Mr Temer
has to move quickly to stabilise the economy. The team he
has picked for the task have so far been universally
applauded. He has not only selected one of Brazil’s most
forces raided Onexim’s offices. Police team, brought in Mr Sauer to overhaul right thing — even when one official was respected former central bankers, Henrique Meirelles, as
later opened a criminal probe against it. Mr Sauer, who co-founded Vedomo- quoted in Vedomosti talking of a “war” finance minister, he has also installed one of its most
unnamed RBC managers. sti, the FT’s former Russian sister paper, with RBC. When the Panama revela- lauded economists, Ilan Goldfajn, of Brazil’s largest private
“The publication became a red rag hired Ms Osetinskaya, its former editor- tions broke “I told my reporters to dig sector bank Itaú Unibanco, as central bank governor.
because of the offshore [Panama in-chief, with a mandate to build a mod- stuff up on” Mr Roldugin, she says. “And Beneath these two he has put in place highly qualified
papers] coverage,” Ms Osetinskaya says ern digital newsroom. the traffic just kept going up.” bureaucrats, including Mansueto Almeida, one of the
in her first interview since her sacking. The improved journalism raised Though RBC appears to be operating country’s foremost fiscal analysts, to crunch the budget
RBC reporters say the Kremlin took RBC’s profile, while the website’s past as as normal since the sackings, many numbers. This team has been in situ for less than a week.
offence at Mr Solyus’s decision to run a clickbait factory meant it could reach a reporters say they plan to quit. The But they are already discussing how to tackle one of Bra-
the story with a picture of Mr Putin — much larger audience than rivals. But motives of Mr Prokhorov, whose zil’s most thorny budgetary questions — its unfunded pen-
Top, Elizaveta even though the president was not their output ruffled feathers. spokesman did not return a request for sion system.
Osetinskaya, named in the leaked documents. One investigation centred on Mr comment, remain unclear. Some in That Mr Temer does not have an elected mandate might
former group “It’s clear the type of journalism they Putin’s youngest daughter, Ekaterina, Moscow say he sacrificed the editors to be a strength. Like China’s Communist party he knows his
editor in chief, is set out to do is not possible in Russia who runs a Silicon Valley-style project at avoid being forced to sell RBC to a more tenure in office is based on an unwritten social contract.
one of three these days,” says Derk Sauer, a veteran Russia’s top university. Another focused Kremlin-friendly oligarch. He must perform on the economy or Brazil will find a way
senior editors Dutch journalist who is the Onexim on her husband, the beneficiary of a Others say the man who ran for presi- to dispose of him as it has done with Ms Rousseff.
sacked by RBC. executive in charge of RBC. sweetheart $1.75bn state loan to buy a dent against Mr Putin in 2012 may be at Even if it succeeds, his administration could still disap-
Above, Mikhail Through most of its history, RBC’s dis- stake in a petrochemicals producer. risk. “They don’t trust Prokhorov any pear as quickly as it arrived if Ms Rousseff survives the
Prokhorov parate, if well-read, outlets were best “If you look at the major investiga- more,” says a senior figure at RBC. “The impeachment — viewed as unlikely — or if he is indicted in
Sergey Mihailicenko/Anadolu known for copying news from other tions we did, they are all based on the whole process [of intimidation] is as the Petrobras investigation. Mr Temer’s team selection has
Agency/Getty Images
publications, “exclusives” that had to be same principle: follow the money,” says indirect as possible,” the insider adds, serious flaws. But his economic strikers are real superstars.
retracted and paid-for articles. Ms Osetinskaya, who will take up a fel- mimicking the classic mafia threat: Brazilians can only hope that their talent and energy
Embarrassed by its reputation, the lowship at Stanford University. “Nobody ever comes and says, ‘Oh, what makes up for the other players.
liberal-minded Mr Prokhorov, who also Readers’ appetite for their stories, she a nice publication you have, it would be
owns the Brooklyn Nets basketball says, convinced her she was doing the a shame if anything happened to it’.” joseph.leahy@ft.com
Brexit debate
Number of EU nationals working in UK reaches record level
SARAH O’CONNOR AND JIM PICKARD suffer downward pressure on their for the pro-Brexit UK Independence falls in employment or wages since
LONDON
wages.” party, said the 2.1m EU nationals work- 2008. Some studies do find an impact on
The number of EU nationals working in The number of EU workers was ing in Britain were “a huge boon to mul- the wages of locals in unskilled service
the UK has climbed to a fresh record of 224,000 higher than a year ago. Mean- tinational companies who can exploit sector jobs such as care workers or shop
2.1m, fuelling the debate on immigra- while, official migration figures show the oversupply of labour to keep their assistants, but the effect appears to be
NOVEMBER 7 2015
tion just five weeks before the country 257,000 long-term migrants from the wages low”. small.
votes on whether to leave the bloc. EU arrived in Britain in the year to Sep- However, John Van Reenen, director Economists also warn it is misleading
tember 2015, just shy of record levels. of the Centre for Economic Performance to claim that people born outside the UK
Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco-
R2, 28880 Meco, Madrid. Legal Deposit Number Growth in the number of EU workers in The figures came as the heads of lead- at the London School of Economics, took more than half of the new jobs in
(Deposito Legal) M-32596-1995; Publishing Director, Britain has accelerated sharply since ing multinationals with operations in the past year, since this uses a net
Lionel Barber; Publishing Company, The Financial Times
ROLLING IN THE DEEP
Limited, registered office as above. Local Representative 2013 and they now account for 6.8 per Britain made a plea in a letter to the employment growth figure. Non-UK
office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. cent of the workforce, up from 4.8 per Financial Times against a vote to exit workers account for only a small share
ISSN 1135-8262..
361_Cover.PRESS.indd 1 21/10/2015 10:51
2.1m 224,000
UAE; Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor cent three years ago and 2.6 per cent a the EU. The bosses, including Jeff Total number of Year-on-year of total new hires.
in Chief: Roula Khalaf. Origin of publication, twofour54, decade ago. Immelt of GE, Tom Enders of Airbus, The Britain Stronger In Europe camp
Media Zone, Abu Dhabi. EU nationals increase in EU
France; Publishing Director, Dominic Good, 40 Rue La Campaigners for a British exit, or and Michael Bloomberg said Brexit working in nationals working argues that immigration could continue
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01) the UK in the UK
5376 8253; Commission Paritaire N° 0909 C 85347; ISSN Brexit, seized on the figures to claim “could materially affect major interna- at current levels even in a post-Brexit
1148-2753. that “uncontrolled” immigration from tional businesses’ future investment scenario, pointing to comments made
Turkey; Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24. Europe was hurting British workers, decisions”. rebuffed that argument and said work- by Dan Hannan, a Tory MEP and senior
©Copyright The Financial Times 2016.
though the Office for National Statistics Though the slowing economy and the ers would suffer badly in the event of Vote Leave figure, who said this week
Reproduction of the contents of this newspaper in any warned the data measured employment looming EU referendum have cooled Brexit. “There is no evidence that EU that the UK could join other countries
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under the FT Editorial Code of Practice: and those out of work who feel the con- of 74.2 per cent and unemployment the real wages of ordinary workers by ocrat party leader, responded that this
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sequences of uncontrolled migration,” held steady at 5.1 per cent, the lowest damaging trade, investment and pro- would leave Britain with free move-
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company logo or contact details inserted if required
(minimum order 100 copies). ruling Conservative party and a former wage growth has been stubbornly weak, Research from the Centre for Eco- EU budget — while losing full access to
One-off copyright licences for reproduction of FT articles minister for work and pensions. “They a problem some Brexit campaigners nomic Performance shows the areas the single market, which would amount
are also available.
For both services phone +44 20 7873 4816, or email are forced to compete with millions of blame on the inflow of migrants. experiencing the largest increases in EU to “the worst of all worlds”.
syndication@ft.com
people from abroad for jobs, and they Jane Collins, employment spokesman immigration have not seen the sharpest Letters page 8
Thursday 19 May 2016 ★ FINANCIAL TIMES 3

INTERNATIONAL

Cartel practices Department of Labor

Trump adviser backs inquiry into Opec Millions of

Cramer sponsors bill to
set up commission as
US-Saudi ties suffer stress
ED CROOKS — NEW YORK
A US congressman who has been advis-
ing Donald Trump on energy policy is
leading a plan to investigate Opec, the
oil producers’ cartel, for possible unfair
trade practices.
Kevin Cramer, a Republican member
of the House of Representatives for the
oil-producing state of North Dakota,
said the US needed to examine whether
the cartel was acting anti-competitively
to strengthen its hold over the market,
because of the importance of energy to
national security.
He is one of the sponsors of a biparti-
san bill to establish a commission that
would investigate the actions of Opec
and state-controlled national oil compa-
nies around the world, and propose pos-
sible remedies.
The move comes at a time of strains in
the relationship between the US and
Saudi Arabia, Opec’s de facto leader,
over the possible roles played by Saudi
nationals in assisting the 9/11 terror
attacks.
Opec has been riven by disagree-
ments over the past couple of years and
is seen by analysts as having lost its
influence over the market. However,
concern about the cartel has grown in
the US as a result of the collapse in oil
prices, which has driven more than 130
US companies into bankruptcy and cost
131,000 jobs.
One of the factors behind that col-
International investment. Corporate concern
lapse was Saudi Arabia’s strategy of con-
tinuing to produce at high levels above
10m barrels per day, rather than cutting
output to ease the glut of oil.
The Opec bill, which is also sponsored
by representatives Trent Franks,
another Republican, and Collin Peter-
son, a Democrat, would establish a
bipartisan commission to assess
whether the cartel was engaged in anti-
competitive behaviour, and to recom-
mend possible policy measures involv-
ing “taxes, trade, defence, and research
‘We want to be sure our
competitors and us are all
playing by the same rules’
Kevin Cramer, congressman
and development, and diplomacy,
among others”.
Mr Cramer said he was not prejudging
the outcome of the inquiry, but “I want
to be sure there aren’t games being
played to create monopolies”.
He added that he expected Mr
Trump, the presumptive Republican
nominee for the presidential election in
November, to be receptive to the idea.
“It’s like everything he talks about: we
want fair, transparent trade,” Mr
Cramer said.
“We don’t want to hamper our own
ability to sell into the global market, but
we want to be sure our competitors and
us are all playing by the same rules.”
Mr Trump has in the past proposed
restrictions on the trade in oil, raising
the possibility that the US could ban
imports of Saudi oil to press the king-
dom to do more to fight Isis, the Islamist
extremist group.
Past attempts in the US to use the law
against Opec, including an effort
launched in 2008 to sue it for antitrust
violations, have proved ineffective. Mr
Franks said the first objective of his bill
was simply to highlight the cartel’s role.
“If our bill does nothing more than to
raise this question on to the agendas of
business leaders and policymak-
ers . . . it will have achieved something,”
he said.
Ultimately, he added, the goal was to
reduce US dependence on imported oil.
“If we didn’t have to buy so much oil
from certain parts of the world, terror-
ists would not have enough money to
buy a box of sparklers to use against us,”
he said.
See FT Big Read
US workers
win extra pay
for overtime
SAM FLEMING — WASHINGTON
The Obama administration yesterday
announced rules to ensure millions
more workers are eligible for extra pay
when they work overtime, handing a
victory to unions.
The Department of Labor rules will
extend overtime protection to 4.2m
Americans who are not eligible under
federal law, in a move that the White
House predicts will boost wages by
$1.2bn a year.
The rule will double the salary thresh-
old to $47,476 per year under which
most salaried workers are guaranteed
overtime when working more than 40
hours a week. That is below the $50,400
level announced in a proposal from the
administration last summer, but well
above the current level of $23,660 a

Campaign bombast hits overseas business lobby
Executives particularly edgy
over Trump’s protectionist
threats to rip up trade deals
BARNEY JOPSON — WASHINGTON
The alarm over Donald Trump that is
pushing US business towards Hillary
Clinton is having repercussions beyond
American shores, with corporate lobby-
ists warning that the volatile election
campaign is affecting their work over-
seas.
In a Financial Times survey of busi-
ness views on the US election, 56 per
cent of the trade associations said their
members’ ability to do business outside
the US was suffering from the bombast
and unpredictability of the campaign.
“I was in Japan and Korea a few weeks
ago and it dominated my conversations
with executives there,” said Nancy
McLernon, president of the Organisa-
tion for International Investment, a
trade group for foreign companies in the
US.
“Concern that the US is dialling back
to the policies and rhetoric of the early
1980s — it’s causing these executives a
lot of heartburn.”
The survey revealed that business
groups would prefer to see Mrs Clinton
in the White House over Mr Trump by a
ratio of two to one, a striking sign of
fraying ties between the Republican
party, a traditional champion of busi-
ness, and its corporate allies.
Business leaders have been especially
troubled by Mr Trump’s protectionist
threats to rip up trade deals, impose
high tariffs on imports, and punish com-
panies that shift jobs and production
overseas.
Tom Donohue, head of the US Cham-
ber of Commerce, has called the prop-
erty mogul’s proposals “pretty sort of
stupid” and said last week: “I don’t
know if he is going to win. If he does, he
is going to have to deal with reality [on
trade]. I hear mostly concern from our
members. Who is this guy? What do you
know about him? How would he
behave?”
On trade, 63 per cent of respondents
said Mrs Clinton had the best policies,
with the rest of them declining to pick a
candidate, even though the Democrat
last year switched positions by turning
against a new Pacific Rim trade pact, the
Trans-Pacific Partnership, which big
business is desperate to see.
Business views
FT survey of US trade associations, rounded figures (%)
On US presidential candidates
Which presidential candidate would be...
… best for 50 25
your members?
… worst for 12 24 53
your members?
Clinton
Source: FT research
Head to head: “The hope is that Clinton would pivot
FT survey shows back to her pre-election stance on trade
business groups agreements and globalisation,” said one
prefer Hillary trade association chief.
Clinton to Gary Shapiro, president of the Con-
Donald Trump sumer Technology Association, whose
by a ratio of two members include Apple, Uber and Best
to one — Lucas Jackson Buy, said: “I think a lot of the business
and Aaron Bernstein/Reuters
community is going to go for Hillary just
based on how they would hire, based on
skills and experience. But there is a lot of
concern on her positions.”
Mrs Clinton has shifted to the left on
some issues in an apparent response to
the votes Mr Sanders has won with
tirades against a system “rigged” by the
elite.
The Vermont senator was identified
by 53 per cent of trade associations as
the worst candidate for members.
“There is no prior election that I
can remember where there has not been
a pro-business candidate,” said Mr
Shapiro.
On White House candidates’ policies
Which candidate’s policies are best aligned with your members’ interests?
Immigration
6 19
Trade
12
Tax 25
Trump Sanders None of them Can’t decide/No answer
“In fact, business is being considered
the enemy by both [Mrs Clinton and Mr
Trump].
“It’s an extremely unhealthy environ-
ment and it’s of great concern.”
Mr Shapiro penned an article this
month arguing that Mitt Romney, the
2012 Republican nominee, should run
as an independent to prevent Mr Trump
from winning.
The business groups that said they
would prefer Mrs Clinton tended to rep-
resent more internationally minded ‘I hear
members in fast-moving or technology-
dependent sectors. mostly
The smaller core of Trump support concern
came from more domestic-oriented sec-
tors and those hurt by the Democratic from our
causes of environmentalism and trade members.
unions.
An executive at an association that Who is
opted for Mr Trump as a likely slasher of this guy?’
government red tape said: “My personal
fear is another administration that has
71 6 71 12
63 19 19
31 19 25
to prove they are tougher on business
than the Obama administration.”
Mrs Clinton won the strongest sup-
port on immigration, securing 71 per
cent backing on an issue where Mr
Trump’s hostile pledges to build a bor-
der wall with Mexico and order mass
deportations have eclipsed business’s
goal of bringing in more highly skilled
workers.
The real estate magnate did, however,
come out ahead on tax policy, albeit
with only 31 per cent support. He has
proposed to cut the US’s top corporate
income tax rate — a perennial complaint
of business — from 39 per cent to 15 per
cent.
But Mr Trump has unnerved corpo-
rate America by echoing Democratic
criticism of companies doing so-called
inversion deals, which enable them to
reduce their US tax bills by moving their
addresses overseas.
Additional reporting by Shawn Donnan
year, which has been unchanged for
more than a decade.
The new threshold, which takes effect
on December 1 2016, will be updated
every three years, the White House said.
The move was welcomed by Richard
Trumka, president of the AFL-CIO, who
called it a “major victory for working
people that will improve the lives of mil-
lions of families”.
However, some employers’ groups
have warned that the reforms could
have negative side-effects. David
French, senior lobbyist for the National
Retail Federation, said on the group’s
website that the rules would block
upward career mobility, hit businesses
with administrative costs and fail to
generate an increase in take-home earn-
ings, with employers limiting hours or
cutting base pay.
President Barack Obama in 2014
signed a memorandum instructing the
Department of Labor to modernise the
country’s overtime rules. Overtime eli-
gibility has eroded over time because of
changes in the law and the failure of the
threshold to keep pace with inflation.
The share of full-time workers quali-
fying for overtime based on their sala-
ries has slid steadily from 62 per cent in
1975 to 7 per cent today. Unions have
argued the current threshold is below
the poverty line for a family of four.
The overtime reform comes amid
widespread frustration in the US popu-
lation over subdued income growth in
recent years. There have been tentative
signs of rising wages in recent months,
but average hourly earnings growth still
remains well below the year-on-year
rates of close to 3.5 per cent seen at the
tail-end of the last decade.
Low-wage workers have been benefit-
ing from increases in state and local
minimum wages in some areas, as well
as decisions by some big corporations to
lift entry-level pay. However, efforts by
Mr Obama to boost the federal mini-
mum wage have faltered in Congress,
leaving overtime one of the key meth-
ods available to him to lift earnings
The Department of Labor said
employers could respond to the new
rules by either paying time-and-a-half
for overtime, raising workers’ salaries
above the new threshold, or limiting
their hours to 40 a week.
Ross Eisenbrey, vice-president of the
Economic Policy Institute, a left-leaning
think-tank, said: “The new salary
threshold will provide millions of work-
ers with higher wages or more time with
their families. It will also give hourly and
part-time workers the opportunity to
pick up work that might have otherwise
been done during overtime by their full-
time, salaried colleagues.”

Construction Department of Commerce

Pace of Chinese house-price gains reaches high US moves step closer to duties on China steel
YUAN YANG — BEIJING
Chinese house prices rose at the fastest
pace for two years in April, despite
vast inventories of unsold properties
after investment poured into the con-
struction sector in the first quarter.
The price of new residential buildings
rose 6.2 per cent in the year to April,
according to a Reuters index calculated
from data released by the National
Bureau of Statistics.
At the same time, investment in real
estate construction in the first four
months of this year rose 7.2 per cent
compared with the same period last
year.
Despite an oversupply of properties,
house prices in China’s second and
third-tier cities have started to close the
gap with the country’s first-tier cities of
Beijing, Shanghai, Guangzhou and
Shenzhen.
Earlier this year the government
launched a campaign to persuade rural
migrants to settle in second and third-
tier cities. For those migrant workers
without an urban household registra-
tion, buying a house in the city is a route
to securing city-standard schooling for
their children.
“Average prices continue to increase
month on month but a new trend has
emerged: the rate of increase is slowing
in first-tier cities and picking up in sec-
House prices in
China’s second-
and third-tier cities
are closing the gap
with first-tiers
such as Beijing
ond and third-tier cities,” wrote Liu
Jianwei, of the National Bureau of Statis-
tics. “Year on year . . . average prices in
third-tier cities are now rising rather
than falling.”
The government has turned to the
construction sector to provide stimulus
in tricky times, leading to concerns of
property oversupply, particularly in less
desirable second- and third-tier cities.
As a result, local governments in
those cities face a tricky combination of
tasks: they must reduce unsold stock yet
maintain prices and economic growth.
New-house builds in such cities surged
in March, suggesting local governments
were prioritising growth over inventory
reduction.
“Credit is easily available, meaning
mortgages are still cheap,” said Rosealea
Yao of Gavekal Dragonomics, an eco-
nomics consultancy.
“It is difficult to say what effect the
increase in new housing starts will have
on prices. Although residential proper-
ties take around two years to build,
roughly 70 per cent of houses are sold
before completion.
“There is huge regional divergence —
inventories are coming down in the east,
pushing up prices, while inventories are
still huge in the north.”
First-tier cities have seen rapid price
rises, with Shenzhen, for example,
recording a 63 per cent increase in the
year to April.
Shanghai, Shenzhen and Beijing have
implemented policies to cool price rises.
LUCY HORNBY — BEIJING
SHAWN DONNAN — WASHINGTON
The US has paved the way for the impo-
sition of duties of as much as 500 per
cent on Chinese cold-rolled steel, used
to make cars and washing machines, as
a backlash escalates against a glut of
Chinese steel flooding global markets.
The US Department of Commerce said it
had determined that imports of Chinese
cold-rolled steel should be subject to
anti-subsidy duties of 256.4 per cent and
anti-dumping duties of 265.8 per cent.
Those duties could come into effect as
soon as this summer if a separate review
determines that the imports have
caused “injury” to the US steel industry.
The case is one of three big anti-
dumping cases involving Chinese steel
imports launched by the US steel indus-
try, all of which are expected to climax
in the coming months.
Separately, US Steel, the country’s
biggest producer, is seeking a total
ban on Chinese imports as a result
of hacking attacks in which it accuses
China of stealing intellectual property.
China’s Ministry of Commerce
expressed “strong dissatisfaction” with
the decision by the US, which it said had
employed “unfair methods” in assessing
the tariffs. But the US said none of
China’s steel producers had responded
to its request for their views on the anti-
dumping case.
Chinese steel capacity has soared in
the past decade to more than 1bn
tonnes, sending surplus production
flooding into international markets
especially after domestic consumption
peaked in 2013. Beijing routinely calls
on the sector to cut capacity but at the
same time it is unwilling to allow the
failure of large mills, especially those of
state-owned groups that are often the
biggest employers, taxpayers and bor-
rowers in their locality.
Although imports of Chinese and
other steel have been falling since 2014,
the US steel industry has campaigning
to have the government crack down on
imports as global prices drop.
That has coincided with rising anti-
China trade rhetoric in this year’s US
presidential campaign with Donald
Trump, the presumptive Republican
nominee, vowing to stand up to China
and impose sweeping tariffs on its prod-
ucts if he is elected.
Stocks of beleaguered US steel pro-
ducers surged when initial anti-dump-
ing duties were announced in March.
The final ruling involves higher anti-
subsidy duties than the commerce
department initially indicated.
The hefty tariffs will harden Chinese
negotiators’ desire to acquire “market
economy status” at the end of this year,
as outlined when China joined the
World Trade Organisation 15 years ago.
Market economy status would protect
Chinese exports from being assessed on
the basis of prices in third-party coun-
tries, which are often higher, and from
being assessed for both anti-dumping
and countervailing duties.
Pressure from the steel industry in the
US and Europe has led to political oppo-
sition to automatically granting the sta-
tus to China.
4 ★
Fiscal rules
Madrid and Lisbon win EU reprieve
Commission postpones
decision on fines for
missing deficit targets
ALEX BARKER AND JIM BRUNSDEN
BRUSSELS
CLAIRE JONES — FRANKFURT
Spain and Portugal have won a reprieve
from Brussels after breaking EU fiscal
rules, as the European Commission
postponed a decision to propose the first
fines on a eurozone country for missing
its budget deficit targets.
Mindful of the political impact of trig-
gering penalties, Jean-Claude Juncker,
the commission president, intervened
yesterday to push back the decision
until after the Spanish elections on June
26. Both countries were given an extra
year by the commission to bring their
deficits back below EU limits.
By showing flexibility over the exces-
sive deficits run by Madrid and Lisbon,
at least in the timing of the announce-
ment, the commission risks rekindling
accusations it is putting politics over
rigid enforcement of the EU rule book it
polices. Last year Mr Juncker gave
France a similar waiver, sparking rare
Balancing act: Emmanuel Macron, symbol of France’s reformist drive, appears unsure of whether to challenge his mentor — Yoan Valat/ EPA
Macron pressed to declare candidacy
Doubts grow over En Marche
party leader’s willingness to
take on Socialist Hollande
ANNE-SYLVAINE CHASSANY — PARIS
Allies and potential donors of
Emmanuel Macron, France’s economy
minister, are pressing him to declare his
candidacy for next year’s presidential
election as doubts grow about his will-
ingness to challenge François Hollande.
Gérard Collomb, the mayor of Lyon
and a senior figure in the Socialist party,
said yesterday that the 38-year-old min-
ister would “naturally” be “the candi-
date” of the left next year, if Mr Hol-
lande’s record low popularity did not
improve.
“If by December, François Hollande is
still around 14-15 per cent in the polls
and if Emmanuel Macron is around
28-30, then obviously [Mr Macron] will
be the candidate,” Mr Collomb, a
social democratic heavyweight, told
BFM TV.
Mr Collomb’s endorsement, the first
from a senior socialist, comes as Mr
Macron’s would-be financial backers
question his intentions after he can-
celled a planned fundraising weekend
in London in early June for his politi-
cal party, En Marche.
The minister has put the brakes
on his fundraising plans partly
because his display of political ambi-
tion while still serving Mr Hollande as
economy minister was becoming con-
troversial. Mr Macron is not a member
of the Socialist party.
Another reason is potential
donors among French expa-
triates in London — a large
source of campaign
finance for French presi-
dential hopefuls — are
insisting he declare his
rebukes from European Central Bank
policymakers and ex-commission offi-
cials who wrote the rules, which were
introduced to prevent a recurrence of
the debt crisis that nearly brought down
the EU’s common currency.
Concern has been rising in the Inter-
national Monetary Fund and among
some EU officials that lax enforcement
by Mr Juncker has allowed Italian and
Portuguese debt to rise to levels that
may become unsustainable. National
debt for both is near 130 per cent of eco-
nomic output, the same level Greece
had in 2009 at the start of the crisis.
Pierre Moscovici, the EU’s economic
commissioner, said it was “not the right
moment economically or politically” to
take decisions on punishing Spain and
Portugal for past budget failings but
added that the commission “will have to
come back to this issue in early July”.
Such reassurances are particularly
important for Germany, where voter
resentment of allegedly profligate
southern European states has been on
the rise. Officials in Berlin expressed
confidence that the postponement
reflected political uncertainty in Spain
rather than any reluctance to enforce
French presidency. Economy minister
candidacy for the 2017 election before
they write any cheques.
“He cannot raise funds if he doesn’t
clarify three things; whether he intends
to remain a minister or not, whether he
is working for Hollande’s re-election,
and whether he intends to go for it him-
self or not,” said a longtime French
expatriate in London who says he is con-
sidering donating to Mr Macron’s cam-
paign.
“A lot of people are ready to
donate, but only if he clarifies he doesn’t
secretly work for Hollande,” another
person said. This person indicated Mr
Macron needed to throw his hat into the
ring sooner rather before rivals
tap the maximum €15,000 each
California screening
Billionaire to set up coding
university in Silicon Valley
French telecoms billionaire Xavier Niel
has launched a $100m investment to
set up a branch of his Paris-based
coding university in the heart of
Silicon Valley.
42, as it is called, will open in
November and grow to 10,000
students in five years, offering
free education. 42’s mission is
to “uncover the talents of
their generation in the field
of programming and to
do so on a broad scale”.
Built over 200,000
Xavier
Niel
FINANCIAL TIMES
INTERNATIONAL
penalties on the two member states.
But Jens Weidmann, Bundesbank
president, and Wolfgang Schäuble, Ger-
man finance minister, have called for
the commission to hand over its role as
fiscal watchdog to a more independent
body, because of the supposed politici-
sation of Brussels’ decision making.
Commission staff advised Portugal
and Spain took insufficient action to
Portugal’s government is
in the commission’s
crosshairs for failing to
control its deficit in 2015
tackle their deficits, a judgment that
normally triggers sanctions under the
so-called excessive deficit procedure.
This view was endorsed by Mr Mosco-
vici and Valdis Dombrovskis, the two
European commissioners responsible
for eurozone budget issues. Mr
Juncker’s intervention was critical to the
commission agreeing to delay the puni-
tive judgment. Fiscal hawks within the
college of commissioners sought assur-
ances over the July decision but fear new
French household is allowed to
donate in total to presidential hopefuls.
At stake is a place in the second round
presidential run-off. With far-right
leader Marine Le Pen almost certain to
qualify, the left and the right are scram-
bling to pick candidates who can attract
the most votes in the centre. The centre-
right Republicans are holding a party
primary in November. The Socialist
party, however, is hanging on Mr Hol-
lande’s decision on whether or not to
seek re-election.
En Marche declined to comment. Mr
Macron last week denied a story pub-
lished by news website Mediapart
claiming that he was getting ready to
declare his candidacy on June 10.
sq ft in Fremont, California, the
university will have more than 1,000
iMac computers, very high-speed
internet, large-capacity storage
servers and 300 dormitories — with
plans to increase that to 600.
True to the disruptive spirit of Mr
Niel, who has made billions offering
ultra low-cost mobile telephony to
consumers, the university will be open
24 hours a day, seven days a week.
It will be professor-less. Students,
selected on ability to program, will
learn by themselves and from peers.
The venture is based on Mr Niel’s 42
in Paris, which he set up in 2013 to
provide opportunities for talented
French coders without the formal
means to access the best education.
The school today has 2,500 students.
However, entry is tough. The test,
known as “the swimming pool”
because you throw yourself in at the
deep end, thrusts coding challenges
and puzzles on applicants, who have
four weeks to come up with solutions.
Adam Thomson
data or political pressures may compli-
cate the process. Once the sanctions are
triggered, setting fines takes months
and requires approval of EU finance
ministers. Officials expect any penalty,
which can be up to 0.2 per cent of gross
domestic product, to be extremely low.
Portugal’s anti-austerity government
is in the commission’s crosshairs for fail-
ing to control its deficit in 2015; its defi-
cit was 4.4 per cent of gross domestic
product last year, 1.7 percentage points
higher than its target.
Spain, which has been without a gov-
ernment since inconclusive elections in
December, is estimated to have
smashed its 2015 deficit target of 4.2 per
cent of GDP to reach 5.1 per cent. It is
also on course to miss its target to bring
its deficit below 3 per cent in 2016.
Mariano Rajoy, Spain’s prime minis-
ter, appeared to snub the pressure from
Brussels by promising tax cuts if he is re-
elected prime minister next month.
“We raised taxes at the start of our
term in office, and we lowered both
income and corporate tax in 2015. If tax
revenues continue to rise, as they are
doing now, we can plan another tax cut,”
Mr Rajoy told the FT in an interview.
“I am not going to declare myself next
month and . . . I am not raising funds in
that regards,” Mr Macron said.
His hesitations underscore the bal-
ancing act of a young politician who
while nurturing presidential ambitions
is not yet ready to challenge the author-
ity of Mr Hollande, his mentor and polit-
ical patron.
Mr Hollande picked Mr Macron as
economic adviser at the Elysée Palace
when the Socialist leader was elected in
2012. He then promoted him as econ-
omy minister in 2014 as part of a new,
more reformist government headed by
prime minister Manuel Valls.
Given responsibility for a law to liber-
alise Sunday trading and several regu-
lated sectors of the economy, Mr
Macron has become the symbol of
France’s new reformist drive.
He has irked Socialist hardliners with
his liberal views on the economy and his
regular jabs at leftist taboos such as the
35-hour working week and the wealth
tax. In the process, he has also emerged
as one of France’s most popular politi-
cians.
Asked about Mr Macron’s political
ambitions, Mr Hollande said yesterday
that if the minister wished to “develop
his ideas, he’s got the right to, but within
the framework of what needs to be done
as a minister, ie governmental solidar-
ity.”
Last month, when asked the same
question, Mr Hollande had invoked Mr
Macron’s “personal and political loy-
alty”.
Mr Macron has said he was a personal
friend of the president. But the creation
of his own cross-party political move-
ment to “unblock France” has forced Mr
Macron to distance himself from the
president.
On April 21, the minister said that
while he was loyal to the French leader,
he was not “in hock” to him.
Coalition partner
German polls add to pressure
on Social Democrats’ leader
STEFAN WAGSTYL — BERLIN
Sigmar Gabriel, leader of Germany’s
Social Democrats, is set to face fresh
questions over his leadership after
polls showed support for the once-
mighty SPD had fallen for the first time
below 20 per cent.
The SPD, a partner in Angela Merkel’s
coalition government, has been one of
the twin pillars of German politics since
the second world war alongside the
chancellor’s conservative CDU/CSU.
But after a decade of decline, the party
— like Ms Merkel’s CDU — has suffered a
loss of support over the refugee crisis as
angry voters switch to the rightwing
Alternative for Germany party.
The SPD, in power under Gerhard
Schröder just over a decade ago, faces a
critical period ahead of next year’s par-
liamentary election amid fears of a
worst ever election showing.
“The crisis of the SPD is not the result
of the last few weeks. It has deep roots,”
said Peter Matuschek, head of political
research at the Forsa polling company.
A Forsa poll this week put support for
the SPD at 19 per cent, down from 24 per
cent in August. While the same poll
showed the CDU/CSU, down from 41 per
cent to 34 per cent, had suffered a simi-
lar decline, the SPD is in a worse
position, as it is coming off an already
poor 2013 result. As recently as the 2005
election the party scored 34 per cent.
Sanctions
Brussels threatens Poland with
‘nuclear option’ over rule of law
DUNCAN ROBINSON — BRUSSELS
ZOSIA WASIK — WARSAW
Poland faces the prospect of becoming
the first EU country to face sanctions
for failing to uphold the rule of law
after Brussels issued Warsaw with
another warning over its constitutional
overhaul.
Yesterday, the European Commission
gave Poland five days to demonstrate
“significant progress” in addressing
Brussels’ concerns over changes to the
country’s constitutional court and its
state media.
If Warsaw fails to comply, the com-
mission can issue a “rule of law opinion”,
which paves the way for more serious
sanctions, such as stripping Poland of its
right to vote on EU laws. This last
option, available under Article 7 of the
EU’s treaty, has been nicknamed “the
nuclear option” by diplomats. The
option has never been taken.
Although negotiations continue, Kon-
rad Szymanski, Poland’s European
affairs minister, dismissed hopes of a
deal before the deadline on Monday and
called for more time. “It is hard to
expect a breakthrough,” he said. “To
execute this plan, we need more time.”
The long-simmering row follows the
election of Poland’s rightwing Law and
Justice party with a surprise majority
last autumn. Brussels and Warsaw
Political crisis
Macedonia court deals blow to
ruling party on early elections
ANDREW BYRNE — BUDAPEST
Western mediators welcomed a Mace-
donian court decision to strike down
plans for early elections in the Balkan
country, in a blow to the ruling VMRO
party, the only major party registered
to participate in the poll.
Macedonia’s constitutional court yes-
terday ruled the prior dissolution of par-
liament was unconstitutional, effec-
tively halting preparations for the June 5
poll. The elections were planned as part
of an EU-mediated agreement to resolve
a year-long political crisis that began
when the opposition alleged that Nikola
Gruevski, former prime minister, and
his counter-intelligence chief had
arranged the wiretapping of thousands
of people, enabling them to influence
the media, courts and elections.
With the institutions of the former
Yugoslav country paralysed, Mr
Gruevski earlier this year resigned and
agreed that a caretaker administration
would take over in line with the so-
called Przino agreement, which set out a
plan for investigating the allegations.
But Brussels said conditions for credi-
ble elections had not yet been created
and criticised the government’s failure
to deliver on commitments to clean up
voter lists and foster balanced media
coverage. Other parties, notably the
socialist SDSM party, had refused to reg-
Thursday 19 May 2016
Another poll from the Insa institute
put support for the SPD on 19.5 per cent.
The AfD, which shocked the main-
stream parties with its success in recent
regional elections, is holding on to its
gains, with 15 per cent in the Insa poll
and 11 per cent in Forsa’s.
The fresh slide will add to pressure on
the 56-year-old Mr Gabriel, who has led
the SPD since 2009 and faced criticism
from his own MPs over his failure to halt
the party’s decline. Earlier this month
he was forced to deny rumours he would
step down, while this weekend he pub-
licly called for any possible contenders
to come forward, telling Spiegel maga-
zine: “It would be excellent if in the next
year, two or three people from the SPD
leadership appeared and said: ‘I am sure
I could do it.’”
Two potential successors have
already ruled themselves out of the run-
ning. Olaf Scholz, the mayor of Ham-
burg, recently said the leadership
“stand together”, while Frank-Walter
Steinmeier, the foreign minister who
unsuccessfully led the SPD in the 2009
election, has also backed Mr Gabriel.
Other possible leadership candidates
are Martin Schulz, president of the
European Parliament, and Andrea
Nahles, Germany’s labour minister.
The SPD’s problems mirror the for-
tunes of other European centre-left
parties, including the UK’s Labour party
and the French Socialists.
sparred openly in January when com-
mission officials attacked the Polish
government’s reforms.
One Polish minister responded by
comparing the commission’s criticism —
it came from German commissioner
Günther Oettinger — to the behaviour of
Nazi Germany during the second world
war.
The fallout became less public soon
thereafter, but carried on in background
talks as Brussels opted to take a less con-
frontational approach. After a tricky
start, negotiations improved in the next
few months, according to officials. “The
process is constructive and has brought
the two sides much closer,” said Mr Szy-
manski yesterday in Warsaw.
EU officials familiar with the talks are
hopeful that the threat to push for fur-
ther sanctions will encourage Warsaw to
compromise.
Brussels is most concerned with the
reforms of Poland’s highest court, which
critics say undermined the checks and
balances of the country’s constitution.
The commission has also been
sharply critical of a decision by the
Polish government to sack the manag-
ing boards of Poland’s state-run televi-
sion and radio channels.
But hopes of a domestic solution to
the crisis through talks between
Poland’s government and its opposition
parties are slim, according to diplomats.
ister for the elections, citing unreliable
voter registration lists.
Pro- and anti-government demon-
strators have protested daily in Skopje,
the capital, for more than a month,
while the Freedom House think-tank
recently downgraded the status of the
country’s democracy to “not free”.
In a joint statement, Federica Mogh-
erini, EU foreign policy chief, and Johan-
nes Hahn, the bloc’s enlargement com-
missioner, welcomed the court ruling
and urged the warring parties to pre-
pare for credible elections at a later
date. “This is a renewed opportunity for
the country to address a number of seri-
ous issues at the heart of the prolonged
political crisis,” they said.
The statement also condemned last
month’s pre-emptive amnesty issued by
Gjorge Ivanov, Macedonia’s president,
for dozens of senior figures under inves-
tigation by Katica Janeva, the special
prosecutor, for election fraud and illegal
wiretapping.
“The April 12 pardons should be
rescinded without delay to preserve the
principle of accountability, counteract
serious concerns about impunity and
avoid selective justice. It is a fundamen-
tal democratic principle that all citizens
should be equal before the law.”
The US embassy in Skopje echoed the
call for reforms and warned against
efforts to obstruct Ms Janeva’s work.
Thursday 19 May 2016 ★ FINANCIAL TIMES 5

Global Appointments
6 ★ FINANCIAL TIMES Thursday 19 May 2016
Thursday 19 May 2016
The proposed IPO, which officials say could raise $2tn, is part of a plan for Saudi Arabia to reinvent
its economy. But some investors are sceptical that Riyadh will be able to kick its oil ‘addiction’.
one-trick economy?
T
he headquarters of Saudi
Arabia’s state oil company
is less than a mile from the
spot where US geologists
struck the Arabian penin-
sula’s first crude deposits in 1938, trans-
forming energy markets.
Today, an enormous compound
sprawls out from Saudi Aramco’s offices
in Dhahran. It includes houses modelled
on 1950s American suburbia, along with
schools, hospitals, a golf course, its own
security force and even an airline —
reminders of the company’s unique role
as a state within a state.
Aramco employs 65,000 people and
has long had a high degree of independ-
ence from Saudi Arabia’s monarchs. But
now the connections between the coun-
try and the company that funds it are
being scrutinised like never before.
The nature of Aramco’s relationship
with Riyadh — and, in particular,
Mohammed bin Salman, the hyperac-
tive deputy crown prince — is being
watched closely following the
announcement last month of a radical
plan to shift Saudi Arabia from its
“addiction” to oil. Much of this invest-
ment plan, dubbed Vision 2030, is built
around the use of Aramco oil revenue to
diversify the economy, enhance the pri-
vate sector and create jobs for its over-
whelmingly young population — two-
thirds of its 28m people are aged
under 30.
As the company prepares for an initial
public offering that officials say could
value it at $2tn, there are an increasing
number of questions about what this
plan — and other activist policies from
the 30-year-old Prince Mohammed —
means for potential investors.
“There are wildly different prognosti-
cations about how successful an IPO will
be,” says Jim Krane, a fellow at Rice Uni-
versity’s Baker Institute for Public Pol-
icy in Houston, Texas. “But the Saudis
don’t have a choice but to get it right.
There is an urgent push to diversify
their one-trick economy.”
The prince and the oil minister
Some see Prince Mohammed’s activism
as part of a more politicised oil policy. A
last-minute intervention by the prince
led to the collapse of last month’s talks in
Doha to freeze oil output in a bid to bol-
ster prices. Weeks later, Ali al-Naimi,
the veteran oil minister, was replaced.
As the self-appointed chairman of a
new Aramco governing council, the
prince has redirected power towards
himself, raising concerns among poten-
tial investors that his influence on oper-
ations could grow. Yet others argue the
opposite, saying a part-privatisation of
the company, a push for more transpar-
ency and greater oversight may build a
higher wall between the state and its
biggest revenue earner.
The listing, driven partly by the sever-
ity of the oil price fall, could come as
early as next year, according to Prince
Mohammed. It has whet the appetite of
By Anjli Raval
A fix for a
international bankers, investors, law-
yers and consultants and placed the glo-
bal energy major under the microscope.
Riyadh’s finances have been savaged
by the collapse in the oil price since mid-
2014. The fall from $115 a barrel to $27
in January, unleashed budget cuts and
energy subsidy reforms to rein in a defi-
cit that stood at $98bn at the end of
2015. Even with prices now touching
$50 a barrel there will be little respite.
The theory is that diversification from
oil — paid for by a $2tn-$3tn sovereign
fund whose wealth is built on ownership
of Aramco and the proceeds of any list-
ing — could propel investment into eve-
rything from mining to tourism.
“Saudi Aramco is at the heart of this
vision,” Amin Nasser, its chief execu-
tive, told reporters last week in Dhah-
ran. His message echoed that of Khalid
al-Falih, Aramco chairman and a
trusted adviser of Prince Mohammed.
Mr Falih told top executives soon after
his appointment as oil minister that it
was compelled to lead the country’s
modernisation, according to a person
briefed on the matter.
When asked if the IPO was simply to
secure an initial cash injection for its
sovereign wealth fund, executives
insisted that Aramco would be “setting
Riyadh keeps output high
Crude production
(million barrels a day)
2002 05 10
Sources: JodiOil; company; S&P Capital IQ
‘Aramco is at the heart of
this vision [to diversify the
economy]. We will build the
tankers, we will make ports’
Amin Nasser, Aramco chief
★ FINANCIAL TIMES
FT BIG READ. SAUDI ARAMCO
an example” for future privatisations. It
has already grown from an oil producer
to a refiner and manufacturer of petro-
chemicals in an effort to squeeze more
value from each barrel.
Diversification drive
Set among rusty-red sand dunes near
the kingdom’s Empty Quarter, expan-
sion projects in the giant Shaybah oil-
field are concentrated on doubling pro-
duction capacity to 1m barrels a day as
well as building a plant to produce feed-
stock for the kingdom’s growing petro-
chemicals business.
A push into industries such as ship-
ping, healthcare, construction, infor-
mation technology and transport is also
under way.
“We will be building the tankers and
the rigs, we will make ports and we will
make engines,” says Mr Nasser, giving
the example of a maritime complex on
the Gulf coast at Ras Al-Khair, set to be
operational by 2021.
The entry of private investors into
Saudi Aramco could give them a head
start for any further offerings, industry
observers say. But some investors paint
a gloomier picture for the country’s
economy. They highlight previous failed
diversification drives, the plunge in oil
Leading the majors
Crude oil production (bn barrels)
11 Saudi Aramco BP
4 4
10
9 secret. Any IPO could open up the Ara-
2 2
8 minority stake may not give investors as
7 While the government traditionally
0 0
16 2010 14 2010 14
Strategy
Malaysian and Norwegian
models offer way forward
National oil companies account for high
percentages of gross domestic product,
government revenues and foreign
exchange earnings in big producer
countries. A few of them have begun to
compete with the world’s biggest listed
energy groups, but often government
interests trump those of the investor.
“National oil companies have been a
rotten investment for portfolio
investors on the whole,” says one
energy banker, commenting on the
share prices of the biggest names.
Riyadh’s initial public offering in
Saudi Aramco, the state oil company,
could mirror that of Norway’s Statoil,
revenues and rising costs from the coun-
try’s social policies.
“Aramco needs to ensure that it
doesn’t overextend itself,” says one
energy banker. “Too broad a remit could
mean a loss of competitiveness. They
should stick to what they are good at.”
Saudi Arabia’s hydrocarbon resources
are managed from its nerve centre in
Dhahran. Floor-to-ceiling screens show
the movement of each molecule of oil
from fields such as Ghawar, the world’s
largest onshore oilfield, through pipe-
lines, into refineries and on to tankers.
All of it is monitored by technicians.
Here, the kingdom’s geology and Ara-
mco’s management of its energy assets
are on display. It is the world’s biggest
crude exporter and, with more than
260bn barrels, has the largest reserves
of conventional oil and condensate. It
also has the fourth-largest reserves of
natural gas.
Aramco sets itself apart from some
other national oil companies: it bases its
governance on ExxonMobil and has a
reputation for professionalism and
technological prowess.
Combined with the prospect of
greater oversight, transparency and
efficiency it makes the company more
attractive, argues one western diplomat
ExxonMobil Pemex
2010 14 2010 14
which offered a stake in the whole
company in 2001. The Oslo government
has been stable, the IPO was well
thought out and it has made sensible
overseas investments while
abandoning less lucrative strategies.
Despite Petrobras’s technological
prowess in developing oil reserves
offshore in its deep waters and its
geographical reach, it has had to follow
Brazilian government orders when it
comes to investments, such as those in
its refining sector, and fuel pricing.
Stringent local rules about recruitment
have left it on the back foot. Most
recently a corruption scandal that has
played out on the world stage has
made it look like a perfect example of
the mismanagement evident in state-
owned businesses.
Moscow-backed Rosneft, despite
Above: an oil facility in Khurais.
Inset: Prince Mohammed bin
Salman. The reform planned by the
deputy crown prince aims to
rebalance the economy and enhance
the private sector Aramco/Getty Images
in Riyadh. “The purpose of the offering
is just as much about weaning the gov-
ernment off Aramco as it is about wean-
ing Aramco off the government.”
No matter how tantalising an invest-
ment, Saudi Aramco is fraught with
complexity. The company’s true worth
is unknown. While other state-control-
led national oil companies have gone
public, such as Russia’s Rosneft and Bra-
zil’s Petrobras, their shares have gener-
ally performed poorly.
Mr Nasser says a “huge” Aramco team
is working on the IPO — which could be
the biggest in history — that would see
an offering for close to 5 per cent of the
company. Single and dual listing options
are being considered. “We are still look-
ing at how much to list and where to
list,” says Mr Nasser. Only the largest
stock markets, such as in New York and
London, could handle its vast size.
The structure of any IPO remains
unclear. A stake in the parent company,
which controls exploration and produc-
tion of the kingdom’s oil riches, would
be highly sought after by investors and
would achieve the highest value. But a
separate company within a holding
entity containing select assets could also
be available, analysts say.
Valuation is also based on other fac-
tors. Up to now data — from profits to
government remittances, as well as
information about reserves — has been
mco “black box”, although the sale of a
much influence as they have at other
international oil majors.
holds back from involvement in Ara-
mco’s day-to-day running, it does con-
trol production policy. Prince Moham-
being one of the world’s biggest
producers, has a market capitalisation
far less than an international oil major
with similar output.
Some Chinese state-owned groups
have suffered from poor management
and companies such as China National
Petroleum Corporation made risky
investments in Africa in the race to
secure energy assets abroad.
Malaysia’s Petronas has left the
holding company in the hands of the
government, while several subsidiaries
have been floated. Strategic alliances
have allowed it to compete
internationally and expand globally.
It is often seen as a role model for
NOCs and its listing structure would be
the easiest to replicate for Aramco, but
the kingdom’s ambitions include the
sale of a stake in the parent company.
7
Black gold woes Riyadh is reeling from
a collapse in the oil price since mid-
2014. It produces more than 10m b/d
Time to diversify Riyadh’s deficit hit
$98bn in 2015. The kingdom derives
more than 90% of its revenues from oil
IPO details Investors may worry that
the government will wield too much
influence over the producer’s strategy
med has spoken of independent board
members and Aramco’s separation
from the government, but it could be
difficult to navigate.
“Anyone who wants in on this [IPO]
knows that being subject to Saudi poli-
cymaking is part of the deal,” says Mr
Krane, when asked if the company’s
obligations to the country pose a threat
to its ability to act in the best interests of
private shareholders.
Valérie Marcel, a national oil compa-
nies expert at Chatham House, a UK
think-tank, says royalties and other
payments to the government would
have to be factored in to any earnings
per barrel and valuation calculations.
The company, she adds, hands over
more than 90 per cent of its profits to the
state, which can increase its dividend at
will. “The higher these payments, the
more the valuation will take a hit.”
Aramco has always been able to pur-
sue long-term strategies over short-
term cost effectiveness in exploiting its
hydrocarbon reserves. “We develop our
fields to last for centuries,” says Suha
Kayum, a company analyst. “It is not
just about generating revenues.”
Ms Marcel says private investors will
be less forgiving and will question
excess spending. The company plans to
double domestic procurement of goods
and services over the next decade as
part of a broader government push; ana-
lysts say this will add to costs and raise
eyebrows among potential investors.
Sadad al-Husseini, former head of
exploration at Aramco, says national oil
companies prioritise reaching the high-
est production at the lowest cost over
Khalid al-Falih, the minister,
says oil production will
remain stable but the prince
has hinted that it could
increase if Riyadh chooses
the life of the resource. “Investors want-
ing a higher return in the short run will
have a different point of view,” he says.
Production increase?
Saudi Arabia’s spare production capac-
ity, traditionally used to leverage con-
trol over the Opec cartel and beyond, is a
point of contention. The statistics are
closely watched as they show to what
extent the kingdom could help meet
shortages — but these are investments
in capital assets that are mostly left
unused.
Mr Falih, who has defended Saudi
Arabia’s decision not to unilaterally cut
production in the face of lower prices,
says policy will remain stable. Prince
Mohammed’s manoeuvrings, however,
have triggered concerns that his shift
towards a post-oil economy suggest he is
keen to exploit the kingdom’s oil
resources sooner rather than later. So
could Saudi Arabia increase output and
production capacity? Officials say the
country does not wish to flood the oil
market but the prince issued a veiled
threat last month that it could push up
production should it wish.
Paddy Padmanathan, chief executive
of Acwa Power, a Saudi electricity gener-
ation company, says Riyadh is ulti-
mately trying to reduce Aramco’s status
as a strategic asset as the relationship
between the company, the state and its
economy shifts.
“This is a hugely ambitious task,” he
says. “While people are sceptical about
the timescale, the economic team are
damn serious this time. There is no
alternative. There is a sense of urgency
that hasn’t existed before.”
8 ★
THURSDAY 19 MAY 2016
Japan can do a lot better
than selling the yen
Resorting to currency intervention would be an admission of failure
Shinzo Abe, Japan’s prime minister,
received a pleasant surprise yesterday
when first-quarter gross domestic
product was revealed to have surged,
outstripping expectations.
It must have been particularly grati-
fying that growth was led by an expan-
sion in domestic consumption. The rise
in the yen since the beginning of the
year, which has helped to dissipate
some of the international tension over
exchange rates, has failed to damage
confidence. Mr Abe is hosting the G7
meeting of rich nations’ finance minis-
ters in Japan next week and a fight over
competitive devaluations is the last
thing he wants.
But Mr Abe would be unwise to use
the data, which are volatile and prone
to revision, as an excuse to go ahead
with a rise in sales tax due in April 2017.
Better to use the G7 event to postpone
the sales tax as many have predicted.
As it stands, Mr Abe can rebut accu-
sations that Japan is reliant on competi-
tive devaluation to boost growth. But
his ministers have been raising the
level of rhetoric in their warnings to
financial markets about the possibility
of intervention against the yen in
recent weeks.
If Mr Abe turns away from activist
fiscal policy towards foreign-exchange
intervention, it will look like an admis-
sion that the domestic monetary
and fiscal parts of Abenomics have
failed.
There has been much talk of a truce
in the global currency wars this year.
The dollar, which had climbed nearly
25 per cent on a trade-weighted basis
between mid 2014 and early 2016,
prompting rising concern in Washing-
ton, has lost about a fifth of those gains
since the end of January.
The efforts of the Chinese authorities
to prevent a sharp fall in the renminbi
have contributed greatly to stability.
But as far as the G7 economies go, it was
The ice finally begins
to crack in Venezuela
The international community, including China, can play a useful role
Venezuela is the great failure of the
western hemisphere. A large, seem-
ingly wealthy, apparently modern and
resource-rich country, only a three-
hour flight from the US, is on the brink
of economic and political collapse,
financial default and, potentially,
a humanitarian crisis.
A lack of basic goods and medicine
has led to protests and lootings. Short-
ages of foreign currency, prioritised
to pay overseas debts, have forced a
40 per cent drop in imports in the past
year, according to estimates by Bank of
America Merrill Lynch. Oil production
is falling and power shortages have cut
the government’s working week to two
days. Inflation is forecast to top 450 per
cent this year, and almost 2,000 per
cent next, while the economy is shrink-
ing at a rate of 8 per cent — its third year
in recession. How much longer can this
sad state of affairs continue?
More than two-thirds of Venezuelans
say that President Nicolás Maduro
should be relieved of his duties.
Instead, he is digging in. Last week, he
declared a 60-day state of emergency,
extendable into 2017, supposedly to
protect the country from unnamed
threats. In another defensive move, he
ordered the army to go on manoeuvres.
As one US intelligence official has put
it: “You can hear the ice cracking.”
The future is bleak. Mr Maduro’s
approval rating has dropped to 26 per
cent and there are persistent rumours
of a palace coup. That may be why Mr
Maduro assumed emergency powers;
it shows he is in control. There is also
talk of unease among mid-level army
officers. That, in turn, may be why Mr
Maduro has ordered military manoeu-
vres, as they would disrupt any subver-
sive plans. Anything is possible in the
scorpions’ nest of internal Venezuelan
government affairs, which are riddled
with corruption and special interests.
Foreign powers have every interest
not clear at all that there was a cur-
rency war in the first place. While the
yen and the euro dived after the Bank
of Japan and the European Central
Bank moved further towards super-
loose monetary policy in recent years,
these were natural consequences of the
expansion of the domestic money sup-
ply, rather than a deliberate devalua-
tion. The ECB even engineered a move
into negative territory for interest rates
earlier this year in a way that mini-
mised the effect on the currency.
The real concern now is that Japan
may feel forced towards direct foreign-
exchange intervention to reverse
recent gains in the yen. Masatsugu Asa-
kawa, the vice-minister for interna-
tional affairs and Japan’s top currency
official, said this week that Tokyo
regarded intervention as a legitimate
part of its toolkit.
This may be true, but the use of that
tool would be an unfortunate admis-
sion that it has failed to employ the
other instruments adequately. The
Bank of Japan has continued to loosen
monetary policy this year, but it has
moved in fits and starts.
Haruhiko Kuroda, its governor,
appears to be engaged in a cat-and-
mouse game of expectations about pol-
icy announcements with the markets
rather than meeting the threat of stag-
nation and deflation with overwhelm-
ing firepower. On the fiscal front, Mr
Abe’s equivocation over the sales tax
rise does not suggest a full-throated
commitment to using the public purse
to boost growth.
Now is not the time to abandon fiscal
and domestic monetary policy and go
back to the old game of currency inter-
vention. That can only inflame interna-
tional relations, while having no more
than a limited effect on the economy.
Tokyo needs to show the G7 that it is
serious about using all the weapons in
its arsenal.
in encouraging a stable outcome in a
country with the world’s largest oil
reserves. Sadly, outsiders have very few
points of purchase on Caracas.
One route should involve interna-
tional condemnation, especially by
regional Latin American organisations,
of the executive’s subordination of the
judiciary. The government-controlled
Supreme Court, for example, has
nullified legislation from the opposi-
tion-controlled National Assembly —
even though 94 per cent of Venezue-
lans say they would like to see the exec-
utive and legislature co-operate to
solve problems. Whether co-operation
is possible in such a polarised country
is another matter, although the Vatican
could play a useful role here as it did in
Cuba.
There should also be international
pressure for Venezuela to follow the
due process that would allow for a
so-called recall referendum to take
place. This initiative, which could
remove Mr Maduro and see fresh elec-
tions, needs 200,000 signatures to
begin. The opposition has collected
1.8m, but as vice-president Aristobulo
Isturiz said this week: “Maduro will not
be ousted by a referendum because
there will be no referendum.”
China, which has loaned Caracas
more than $65bn in return for oil deliv-
eries, potentially has a big role to play.
Having extended some of these loans’
maturities, officials in Beijing said that
they hoped “Venezuela can properly
handle” its current situation. A refer-
endum is one way to do that. After all, it
is a constitutional process that even
Hugo Chavez allowed.
Caracas would probably condemn
even these mild initiatives as outside
interference. Even so, the truth should
be spoken. At least, it would expose Mr
Maduro’s hypocrisy and posturing for
what they are, and so help encourage
the possibility of happier outcomes.
FINANCIAL TIMES
Brexit would hit UK growth and impede foreign investment
Sir, We are some of the thousands of
companies that have chosen to invest
in Britain. Our investments range from
advanced manufacturing facilities to
digital infrastructure, creating
hundreds of thousands of jobs.
The UK is consistently ranked as one
of the most attractive destinations in
the world for investors, and it is the top
destination for inward foreign direct
investment in Europe. There are many
reasons for this: a culture of innovation
and creativity, a flexible labour market,
a predictable and sound legal system,
the English language. However, for us,
EU membership is also a big reason
why we have chosen Britain. Recent
suggestions that the UK should leave
Tories will need more than
gallantry to remain united
Sir, Jacob Rees-Mogg is far too
optimistic about Tory party unity
(“Gallantry is needed if Tories are to
reunite after the referendum”,
Comment, May 17). His
pronouncement that “the EU
referendum will decide the matter of
Europe for a generation” sounds little
short of delusional, given the recent
experience of Scotland’s independence
referendum and the EU’s parlous state.
The party only appears “united in all
other important policy areas” because
it is so busy fighting over Europe. The
question is far bigger than whether to
Leave or Remain: it represents a
fundamental division within the Tories
between an open, internationalist,
free-trading attitude and a national-
patriotic, inward-looking, populist one.
Should Britain leave the EU, there
will be endless matters of practical
policy tied to this question, left to be
resolved; and these will become
opportunities for the party to bicker
about the same basic thing.
The problem is by no means
exclusively Tory, or particularly
British: the same forces are shaping
this year’s US elections, sorely testing
the unity of the Republican party and
exposing similar, though milder,
fractures within the Democrats. Mr
Rees-Mogg strives to endear himself to
both Brexiters and Remainers; but it
will take more than a bit of gallantry to
preserve the Tories from their own
inherent contradictions.
David A McM Wilson
Brookline, MA, US
London will require more
power in devolution quest
Sir, Centre for Cities this week
questioned whether, under devolution
proposals, new “metro mayors” will
have enough power to deliver (“’Metro
mayors’ in England’s city-regions face
curbs on power”, May 17).
The Mayor of London’s introduction
of the “hopper” fare last week was
contrasted with doubts that other
“metro mayors” will even be able to set
bus timetables.
But London’s devolution journey is
far from over. It needs more powers
over infrastructure, housing and skills
if it is to meet the challenges it faces as
its population rises towards 9m.
The UK’s centralised system of
government is an aberration on the
international scene. London, like the
regions, remains infantilised. “Metro
mayors” across England must make
An inconvenient
truth and a line
in the sand
Notebook
by Roula Khalaf
Letters
the single market if it exits the EU are
particularly concerning and potentially
hugely damaging. According to
surveys, almost three-quarters of
foreign investors cite access to the EU’s
single market as a key reason for their
investment in Britain.
We see Britain’s EU membership as
a win-win situation: the single market
offers us seamless access to a market of
500m people, giving us instant
possibility to scale up our investment.
At the same time, foreign investment
boosts innovation and job creation in
Britain, boosting the country’s overall
wealth in the long term.
However, if there is one thing we as
investors don’t like, it is economic
‘I’m fed up with staying and I’m
too scared to leave’
common cause with London
to gain more meaningful powers
across the board, and make the
“devolution revolution” more than just
a sound bite.
Rob Griggs
Head of Public Affairs,
London Chamber of Commerce and
Industry,
London EC4, UK
Economic crimes are often
part of wider malpractice
Sir, Last week, in its updated national
action plan on business and human
rights, the government reiterated its
expectation that UK businesses should
respect human rights.
On the same day, David Cameron,
the prime minister, also announced
that the government would consult on
improved ways to tackle corporate
economic crimes, including fraud and
money laundering. Both these
announcements are welcome.
We need to recognise that economic
crimes are often part of a wider picture
of malpractice.
We continue to see a minority of
irresponsible companies causing
serious harm through their operations
within developing countries — often
going hand in hand with corrupt
practices.
In order to reassure British investors
and consumers, the current gap in
terms of legal accountability for both
needs to be closed.
Dominic Grieve MP
Catherine McKinnell MP
Colin Melvin
Global Head of Stewardship, Hermes
Investment Management
Andy Biggs
Chief Executive Officer, Traidcraft
When I was growing up in Lebanon,
there were two or three designated
culprits for everything that went
wrong, whether it was the latest battle
in the 1975-1990 civil war, a plunging
currency or torrential rains.
One was Henry Kissinger, even
when he was no longer involved in
American foreign policy. Another was
the Central Intelligence Agency,
preferred master of all conspiracies.
The third was Sykes-Picot, which to a
child sounded more like the name of a
cheese than the 1916 secret agreement
that drew the borders of the modern
Middle East in the waning days of the
Ottoman Empire.
Mr Kissinger is still closely read
today, his words dissected and his
arguments discussed. The CIA is still a
target of widespread resentment and,
quite probably, involved in all sorts of
Middle Eastern shenanigans. But as
sectarian fires blaze through the
nation states of the Arab world, the
focus of blame has shifted towards the
conservative British politician and the
young French diplomat who carved
the region into spheres of influence.
This week it is a century since Sir
Mark Sykes and François Georges-
Picot drew that “line in the sand”. It is,
therefore, an opportune time for more
fervent debate.
It is an enduring and unfortunate
habit in the Arab world to blame
outsiders for the ruinous state of the
region and to see in every act the
sinister hand of foreign conspirators.
The alternative — the idea that maybe
the Middle East has been ruined by its
uncertainty. As several important
bodies have said — the International
Monetary Fund, Bank of England,
London School of Economics, the
Treasury and others — leaving the EU
would mean a shock to the UK
economy, hurting growth, job creation
and foreign investment. And no
existing alternative outside can match
EU membership in terms of access to
the single market and a say over the
rules governing trade and investment
in that market.
We are concerned this uncertainty,
which would hang over the UK’s future
trading relationship with the remaining
EU states should it leave the single
market, could materially affect major
Greater efficiency is key to Tuition seen as secondary
meeting network demands objective at universities
Sir, In response to your article on “zero
coal” (May 16), far from being in a
“blind panic” to secure supply, the
British grid is being served by
technologies that enable our second-
by-second electricity needs to be met
on the demand side. Instead of seeing a
regular “notice of insufficient margin”,
by putting no-build, automated,
invisible demand-side solutions to
work, the system can be run more
efficiently. British technology
companies are each day demonstrating
that throwing more supply at the
problem is not the only answer.
David Hill
Business Development Director,
Open Energi
London SW1, UK
Sympathy levels soar for
first-class cabin anxiety
Sir, One can sympathise with Professor
Patel’s dread of the first-class cabin
(“Airlines’ marketing tactics are
anything but first-class”, May 16) and
readily understand his preference for
privacy at the back of the aeroplane —
where one can contemplate the world
in peace, sustenance on hand.
Yes, I recall the near horror of my
merchant banking colleagues at the
foregoing of the privilege of the
forward cabin, but in its place I would
add a weekend away to explore and
recuperate after pursuing the bank’s
business — while still showing a saving
over the first-class fare.
Anthony Eastwood
Much Hadham, Herts, UK
Earlier routes to and from
China than the Silk Road
Sir, Regarding the report on the Silk
Road (“The New Trade Routes: Silk
Road Corridor”, May 10), it is
worth noting that this historic
overland route was not the earliest, nor
did it carry the most cargo, nor was it
the longest or first to introduce trade
items (spices, ivory, etc) to Europe.
The distinctions should be reserved
for the most ancient trade route, by sea
from Egypt to China. It carried produce
from Africa and the Mediterranean via
the Red Sea to Yemen, then the Gulf to
India and Southeast Asia and China.
The Yemen connection dates back to
about 1,000BC.
Niccolo Caldararo
Department of Anthropology,
San Francisco State University,
San Francisco, CA, US
own people and its leaders — is an
inconvenient truth.
But it’s not just Arabs who blame
Sykes-Picot. Many commentators and
politicians from elsewhere look to
colonialism and the artificial drawing
of national boundaries as the source of
the calamitous present. The argument
is expedient because of its simplicity,
its ability to make the concept of
partition more palatable and for
sheltering from blame misguided
recent policies — the 2003 Iraq war,
say, or the lack of action to halt the
civil war in Syria.
It is largely thanks to Isis that the
debate over Sykes-Picot has
resurfaced. The group staged a
brilliant stunt when, after capturing
swaths of Iraqi and Syrian territory in
2014, its jihadis demolished a sand
berm, or barrier, on the border and
declared the death of Sykes-Picot.
Isis leaders knew the symbolism
would elicit attention, if not cheers,
even from those who despised the
group. Indeed, the act unleashed a
torrent of commentary proclaiming
the official death of the British-French
design. For some, the conclusion was
good riddance.
The Middle East is evidently
disintegrating. Iraq has been lurching
towards de facto partition between
Shia, Sunni and Kurdish mini-states;
Syria’s civil war has divided
communities along ethnic lines; and
other states (Lebanon at the top of the
list) are shuddering under the burden
of millions of Syrian refugees.
But pinning blame for the Middle
Thursday 19 May 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address
Corrections: corrections@ft.com
international businesses’ future
investment decisions. As investors, it is
therefore very much in our interests
that Britain stays in the EU.
Tom Enders
Chief Executive Officer, Airbus
Michael R Bloomberg
Founder and Chief Executive Officer,
Bloomberg
Chuck Robbins
Chief Executive Officer, Cisco
Joe Tucci
Chief Executive Officer, EMC
Jeff Immelt
Chairman and Chief Executive Officer, GE
Hiroaki Nakanishi
Chairman, Hitachi
Full list of signatories: ft.com/letters
Sir, Your editorial (“Universities must
learn to serve students better”, May 17)
makes a valid point in stressing the
excellence of British universities while
also raising the issue of the priority
they give to research as compared with
teaching. It adds that: “A recent survey
found that some 30 per cent of
students believed their courses were
poor value for money.”
Universities describe themselves —
and are widely thought of — as
educational institutions. Their raison
d’être presumably has to do with
educating students. Yet, anyone who
has been a faculty member knows that
teaching is regarded as a secondary
objective. Promotions are based mainly
on research publications.
This is sometimes justified on the
grounds that research and good
teaching go together. This happens
only rarely. The worst teacher I can
recall at university went on to become
a Nobel Prize winner. He was of great
benefit to society but it was of little
consolation to the students who left his
class in droves.
University business schools often
advise companies to know “what
business they are in”, advice they may
have to ponder regarding their own
future.
Professor Jim Leontiades
Nicosia, Cyprus
Trump not the sole reason
GOP should look at itself
Sir, In Edward Luce’s article, “Another
brick in Trump’s wall” (May 16), he
mentions the March 2 open letter
denouncing Donald Trump, signed by
members of the Republican national
security community.
He rightly points out that most
signatories are “too old to serve, too
junior to be noticed and too
neoconservative to fit with Mr Trump’s
‘America First’ worldview”.
He might also have added that, of
the 121 names, only 16 were women
(by my count).
Assuming that this is a
representative sample of the gender
distribution in their community as a
whole, it seems that Mr Trump is
not the only reason that the Republican
policymaking elite should be taking
a long hard look at themselves in
the mirror.
Leo von Bülow-Quirk
Managing Director (Europe),
Chartwell, Worldwide Speakers Bureau,
London WC1, UK
East cauldron on a plan hatched
decades ago is misleading. For all the
damage that colonialism has inflicted
on the region, the borders are not
responsible for the states’ failures to
unite the people behind a national
project. Many other countries outside
the region have artificial boundaries
too and, in any case, the broad lines
drawn by Sykes and Picot were not
dreamt up — often they largely
corresponded to Ottoman
administrative borders.
When Arab youth rose up in revolt
in 2011, their slogan was not “the
people want the fall of Sykes-Picot”; it
was “the people want the fall of the
regime”. If ethnic and religious
identity now trumps national
attachment in many parts of the
Middle East, that is the result of
collective disenchantment and
insecurity, not a harking back to some
fictitious past.
Apart from the Kurds who aspire to
an independent state, partition on
religious lines is not the people’s
ambition. Whether at the birth of the
new states or today, as some appear to
disintegrate, aspirations remain the
same: people want to live in dignity,
governed by responsible and
accountable governments. In Syria,
Iraq or Lebanon, civil society, when it
still agitates, rallies against economic
mismanagement and a corrupt
political class. On this 100th
anniversary of Sykes-Picot, it is time
to let go of its ghost.
roula.khalaf@ft.com
Thursday 19 May 2016
ASIA
Jamil
Anderlini
T
o North Koreans, their
country’s relationship with
China was “forged in blood
in the victorious war to lib-
erate the fatherland” — a
conflict that most of the world calls the
Korean war. In China, ties with the Dem-
ocratic People’s Republic of Korea have
traditionally been described as being
“as close as lips and teeth”.
These days, however, teeth are bared
and lips curled on both sides. The Finan-
cial Times visited North Korea last
week. Most striking was the deep ani-
mosity that everyone, from government
officials to ordinary citizens, seemed to
feel towards their former comrades
across the border.
All interviews were conducted in the
presence of minders and no one was free
to say what they really think. That only
YouTube is big
enough to take
responsibility
BUSINESS
John
Gapper
E
very day we receive a fresh
reminder of the unprece-
dented power and reach of US
internet and consumer tech-
nology companies. Alpha-
bet’s Google, Facebook, Amazon and
Apple can affect the lives of millions by
launching services or tweaking the algo-
rithms that decide where advertising or
information flows.
Facebook is now entangled in a con-
troversy over how its team of human
curators may have favoured liberal pub-
lications over rightwing ones when pick-
ing stories for its 1.7bn active monthly
users. Meanwhile, a jihadi extremist
tapped the online advertising market by
using Google’s AdSense network to draw
ads from Citigroup, IBM and Microsoft
to his website before he was blocked.
Both incidents in different ways raise
the question at the heart of the business
of social networks and internet service
providers: how much blame should they
take for what they carry? Do they
occupy legal safe harbours, in which
they cannot be sued or even fairly criti-
cised for what happens on their net-
works, or are they like publishers and
editors that bear responsibility?
OPINION
Serhii
Plokhii
A
ctivists in the Crimean
Tatar movement gathered
yesterday at the railway
station in Bakhchisaray,
ancient capital of Crimea,
defying a ban by the Russian authorities
on demonstrations in honour of victims
of the forced deportation of Crimean
Tatars 72 years ago. The participants
then marched to the Bakhchisaray pal-
ace, former seat of the rulers of the Cri-
mea, accompanied by the sound of
“1944”, Ukraine’s winning entry in the
Eurovision Song Contest.
It was sung by Susana Jamaladinova,
known as Jamala, a Ukrainian of
Crimean Tatar origin who beat the hotly
tipped Australian and Russian entries
into second and third place.
Jamala dedicated her song to her
great-grandmother, who in May 1944
Paranoia about China grips Pyongyang
made the anger at China more striking,
since it means such attitudes carry a cer-
tain amount of official approval.
Although the ruling North Korean
Workers’ Party held its first congress in
36 years last week and the country is
China’s only official ally, no senior offi-
cial from Beijing attended.
In official rhetoric, America is always
“our sworn enemy”, Japan is the “thrice-
cursed imperialist nation” that occu-
pied the country for 50 years and South
Korea is an evil puppet regime. But
when people spit this vitriol they often
seem to be going through the motions.
With China, however, the insults were
more spontaneous and the depth of feel-
ing obvious.
In China itself, North Korea is seen as
an embarrassing joke — a starving Sta-
linist anachronism that reminds many
of life under the totalitarianism that
China abandoned in the late 1970s.
There are several reasons why rela-
tions have deteriorated. China has
become increasingly concerned over
Pyongyang’s ambition to develop
nuclear weapons capable of threatening
the US and has even enforced some
punitive sanctions on North Korea.
The answer, it seems to me, has
changed and continues to evolve. When
they were smaller and technology was
less advanced, it was wrong to behave as
if they were entirely responsible for
their users, and it would have held back
economic progress. It would still be mis-
guided to expel them from safe har-
bours entirely. But they have wider
duties now.
That brings us to a lingering dispute
that has reared its head again: the
behaviour of YouTube, Google’s online
video-sharing site. Since it was founded
in 2005, YouTube has been immersed in
controversy over copyright protection.
Music labels and film studios are on one
side while on the other are users who
upload, along with their own material,
pirated videos and songs.
YouTube is in negotiations with the
three big music labels — Vivendi’s Uni-
versal Music, Warner and Sony — on
new contracts for the online licensing of
their artists’ songs. The labels complain
that YouTube offers a poor deal com-
pared with audio services such as Spot-
ify and Deezer. Spotify pays labels an
average of $18 per user annually, while
YouTube pays $1, according to the IFPI
global trade body.
In terms of volume and influence,
YouTube has grown hugely since Google
acquired it in 2006 for what now seems
like the bargain price of $1.7bn. It has
become a medium in its own right,
allowing YouTube stars such as PewDie-
Pie, Zoella and HolaSoyGerman to
amass millions of subscribers with
Ukraine is singing to a tune of new national pride
was among 240,000 Crimean Tatars for-
cibly resettled on Stalin’s orders in Sibe-
ria and Central Asia. The entire nation
was accused of collaboration with Nazi
Germany. Most of the deportees were
women, children and the elderly. At
least a third of them died from starva-
tion and disease.
When the Russian authorities
annexed the Crimean peninsula in
March 2014, they prohibited public
commemorations of the anniversary of
the forced deportation. Little surprise,
then, that the Russian media refused to
accept the Eurovision result. The head
of the state Duma’s foreign affairs com-
mittee claimed that the contest had
“turned into a field for political battles”.
Politics were indeed important in the
contest, even though the rules prohibit
songs with political content. Trying to
remove nationalism and thus politics
from Eurovision is as futile as trying to
depoliticise the Olympic Games or the
football World Cup. Eurovision mobi-
lises national audiences by turning
them into both viewers and judges, dra-
matically raising the level of involve-
ment. This is especially true for the
★ FINANCIAL TIMES
Comment
Beijing has often talked up its influence
over its recalcitrant neighbour in its
discussions with Washington, but
when Pyongyang claimed to have tested
a hydrogen bomb this year, Beijing had
no idea it was coming, according to
several people with knowledge of the
matter.
Today, Pyongyang relies on China for
the majority of its fuel and food,
North Korea is wary of
Beijing trading away its
interests as part of a
bargain with the US
although most North Koreans are una-
ware of this. The regime knows its ally is
unlikely to cut that supply because of
the fear of millions of starving refugees
flooding across the long and lightly
guarded border.
On the North Korean side, the 33-
year-old supreme leader Kim Jong Un is
increasingly concerned over China’s
irredentist moves in the region, includ-
ing in the South and East China Seas.
quirky music, fashion and games-re-
lated short-form videos.
This has turned YouTube into as cru-
cial a platform for musicians as
Viacom’s MTV music video channel
once was. Even Universal, when it
launched a blitz to shield Taylor Swift’s
album 1989 from piracy in 2014 —
including nearly 144,000 blocks on
YouTube and SoundCloud uploads, and
more than 500,000 requests to delete
search links to infringing files — kept
her single “Shake It Off” on YouTube.
Despite periodic wrangles with Spot-
ify and other audio streaming services
that offer subscription and free services
to users, music companies prefer them
to YouTube. Not only do they pay better
— Universal estimates that it now gets
Music labels will probably
sign up again with the devil
they know while lobbying
for changes in the law
countries of the former Soviet Union
and socialist bloc, which often regard
Eurovision as a way to raise their profile.
Bruised by western sanctions and suf-
fering a loss of reputation as a result of
the annexation of Crimea and the war in
eastern Ukraine, Russia made an all-out
effort to win this year’s competition.
Russian authorities in Crimea had
protested before the contest about
All of Europe became a
hostage of the hostile
international climate
produced by annexation
Ukraine’s song. It came against a back-
ground of rising tension: last month, the
authorities banned the activities of the
main Crimean Tatar representative
body, the Mejlis, which before annexa-
tion functioned as a form of Crimean
Tatar parliament.
On May 12, two days before Eurovi-
sion, the deputy head of the Mejlis was
arrested on charges of “making public
North Korea has always seen itself as a
“shrimp caught between whales” and
Pyongyang is extremely wary of Beijing
trading away its interests as part of a
larger strategic bargain with the US.
However, in a country so dominated
by the cult of personality, it is probably
the personal that matters most. Mr Kim
is popularly referred to in China as
“little fatty Kim” and even seasoned
Chinese diplomats cannot hide their
disdain for a man that ordinary
North Koreans are required to revere as
a god.
President Xi Jinping of China is
rumoured to loathe Mr Kim, while Mr
Kim seems to be personally hostile
towards a country that has invaded and
ravaged Korea repeatedly since the fifth
century and has forced it to pay tribute
for most of its history.
A key reason Mr Kim executed his
uncle, Jang Song Thaek, in December
2013 was the intimate economic and
political relationship that Mr Jang main-
tained with Chinese officials, according
to several analysts. Another point of
deep discomfort for Mr Kim is the fact
that his older half-brother, Kim Jong
Nam, lives in exile in Beijing under the
less than one-tenth of a cent per
YouTube song play — but they do not
admit user-generated content, and so
minimise the risk of piracy.
On the face of it, the solution is obvi-
ous. If they dislike YouTube or its finan-
cial terms, they should stop licensing
their music to it. There are more alter-
natives now — Amazon this month
launched its own video upload service.
A boycott is unlikely, though. Despite
their gripes, the labels will probably sign
up again with the devil they know while
lobbying for changes in the law.
They sense an opportunity in the
European Commission’s review of copy-
right laws, and a similar move by the US
copyright office. The EU’s sympathy for
musicians and publishers makes it more
likely than the US to limit the safe har-
bour that shields internet platforms
from liability for users’ piracy.
Removing YouTube and similar plat-
forms entirely from these safe harbours
would be a mistake. It might suit music
labels for user-generated content to
confront a legal onslaught but harbours,
appeals encroaching on Russia’s territo-
rial integrity”.
If losing to Ukraine was not humilia-
tion enough for Russia, then losing to a
singer known for supporting the Mejlis
with a song decrying Moscow’s crimes
against her people was a major political
setback at home and abroad.
For Ukraine, Jamala’s win is not only a
symbolic victory over Russia in the
European court of public opinion but
also a celebration of a new Ukrainian
identity. She performed in the Crimean
Tatar language and was holding a blue-
and-yellow flag, an embodiment of the
new Ukrainian civic nation. That multi-
ethnic and multilingual entity, long in
the making, has been crystallised by the
conflict with Russia in the past two
years. It unites Ukrainian and Russian-
speaking citizens, Russians, Jews and
Crimean Tatars to defend their state
against foreign aggression that sought to
unite all Russian speakers in a polity to
be called New Russia.
Jamala was chosen as the contestant
by a popular vote, indicating broad sup-
port in the country for the idea of being
represented internationally by a singer
protection and close watch of the Chi-
nese authorities, making occasional
gambling trips to the Chinese territory
of Macau. He apparently destroyed his
chance of succeeding his father when
Japanese authorities caught him trying
to sneak into Tokyo on a fake passport
so he could visit Disneyland.
It does not take much paranoia on
Kim Jong Un’s part to assume that China
is keeping his older brother safe in case
they need to install a member of North
Korea’s ruling dynasty as replacement
for the incumbent.
In his latest attention-grabbing
remarks, Donald Trump, the presump-
tive US Republican presidential candi-
date, said he would be willing to offend
China and speak directly to Mr Kim, a
move that would be a reversal of dec-
ades of US policy.
It may seem ludicrous to outsiders,
but several close observers of North
Korea told the FT that, given the choice,
Mr Kim would prefer an alliance with
America, the far-off superpower, than
China, the ancient oppressor and
emerging superpower.
jamil.anderlini@ft.com
pioneered in the 1998 Digital Millen-
nium Copyright Act in the US, have
served a positive purpose. They have
encouraged the kind of creativity seen
on YouTube to flourish.
Yet the rules, which date from before
YouTube was born, should be tightened.
As Mark Mulligan of Midia Research
says, “Safe harbour was not designed for
the way in which it is being used.” The
main flaw is that responsibility for find-
ing illegality is heavily loaded on con-
tent owners rather than internet com-
panies. The latter do not have to block
piracy of which they are unaware.
Tougher laws need not hurt YouTube.
It has pioneered the use of technology to
catch and stop infringement — its Con-
tent ID system allows labels to filter out
pirated files before they appear. The
labels say that Content ID does not work
as well as claimed but YouTube is at
least accepting responsibility. Internet
groups with deep pockets and technol-
ogy expertise should do.
john.gapper@ft.com
of non Ukrainian background. Follow-
ing the win, Petro Poroshenko, Ukrain-
ian president, announced his decision to
create a commission on the formation of
Crimean Tatar autonomy within exist-
ing Ukrainian borders.
Were the Eurovision results influ-
enced by politics? Certainly. That always
happens when people are identified by
national allegiance and asked to vote.
But was Jamala’s win the result of an
anti-Russian propaganda campaign, as
some Russian politicians have claimed?
Hardly, if at all.
It was not only the Crimean Tatars
who became political hostages when
Russia annexed their ancestral home-
land in 2014. The same applies to Russia
and its image abroad, as well as to Euro-
pean politics and culture insofar as the
two are associated. The whole of Europe
became a hostage of the hostile interna-
tional climate produced by annexation.
The latest developments in Crimea
and the results of the Eurovision contest
are a fresh reminder of that fact.
The writer is author of ‘The Gates of
Europe: A History of Ukraine’
9
Bring on the
long-delayed
dawn of the
robot age
ECONOMICS
Chris
Giles
he video is set in a new fac-
T tory replete with driverless
vehicles. It shows, amid fly-
ing sparks and white-hot
metal, automated arms
engaged in the business of making cars:
metal casting, precision welding and
paint spraying. Dramatised with a
soundtrack from Rossini’s Barber of
Seville, the strapline, “Handbuilt by
Robots”, advertised the modernity of
the manufacturing process for the Fiat
Strada. That was nearly 40 years ago: so
much for the dawn of the robot age.
The UK advertising campaign was
designed to contrast modern Italian
manufacturing with the kind of cars
that were then “handbuilt by Red
Robbo” and his fellow trade union shop
stewards at British Leyland.
Fiat’s advert was influential, though
not on British consumers, who pre-
ferred better cars than the tinny Strada.
It helped persuade UK industry of the
need to mechanise and modernise.
Since 1979, Britain’s manufacturing
workforce has fallen 60 per cent while
output is 6 per cent higher, giving a pro-
ductivity improvement of 171 per cent.
This has come with higher wages, living
standards and stable income inequality
since 1990. For the economy at large,
robots were a blessing not a curse.
The past is not always a good guide to
the future. The fear now is that automa-
tion and artificial intelligence are pro-
gressing so fast that, unlike in the previ-
ous generation, it will bring insuperable
challenges of human redundancy and
concentration of incomes.
Automation should enable
everyone to be better off as
long as there is a fair
distribution of the spoils
There is no sign yet in the data of an
acceleration in technological progress.
Official data this week showed a record
number of British people in work, with
the employment rate among 16 to 64-
year-olds at 74.2 per cent — the highest
since comparable data were first pub-
lished in 1971. Yet productivity growth
has been in the doldrums. A report on
the digital economy from the Confer-
ence Board, a global business member-
ship body, showed annual UK produc-
tivity growth falling to just 0.1 per cent
between 2007 and 2014, from an aver-
age of 1.9 per cent between 1999 and
2006. The slowdown in efficiency gains
is most pronounced in sectors that
spend most on digital technology.
It is possible that statisticians are fail-
ing to capture the true power of digital to
improve lives, but that cannot account
for all of the drop. In his independent
review of UK statistics, Sir Charles Bean,
former deputy governor of the Bank of
England, estimated that proper meas-
urement of the fall in the price of con-
sumption of goods and services in which
there has been extensive digital disrup-
tion would add only about 0.5 percent-
age points to annual economic growth.
If Sir Charles is right, and any meas-
urement failures are not game-chang-
ers, there are two distinct possibilities
for Britain’s longer-term future.
The first is that the digital technology
has not yet matured but is on the cusp of
profoundly changing employment pat-
terns and productivity. In this world,
many jobs will become automated, pro-
viding much by way of productivity
gains and economic growth. This would
enable everyone to be better off so long
as public policy tools were devised to
ensure a fair distribution of the spoils.
The alternative is that productivity
growth remains close to zero, employ-
ment rates stay high and the main
driver of increased economic activity
comes from forcing people to work
longer. A lack of productivity growth
would bring profound challenges to
public finances, requiring ever-increas-
ing prosperity to fund both accumu-
lated government debt and the liabili-
ties incurred by an ageing population.
Of course, these two worlds are oppo-
site extremes of a spectrum of out-
comes. But without doubt anything
closer to the robotised high-productivi-
ty-growth world is preferable to work-
ing until you drop. So when we hear of
robots taking our jobs the reaction
should be to cheer rather than sneer.
chris.giles@ft.com
10
How to up your
language skills
to television
grilling level
Michael Skapinker
Businessandsociety
When dense makes sense for data
Junior doctor contracts: current v government position v BMA proposal
This chart illustrates how the proposals of the government and BMA compare with existing pay
Rate
Monday–Friday
of pay
2.0x
1.8x
BMA
1.6x
1.4x
1.2x
Government
1.0x
Current
7am Noon 6pm
Sources: NHS employers; FT research
Alan Smith and Federica
Cocco of the FT’s data
visualisation team argue
that easy-to-read is not
always best for charts
H
ow quickly should you be
able to read and under-
stand a chart? Amid the
data deluge and talk of
ever-decreasing attention
spans, you might be tempted to think
that this single factor alone will deter-
mine whether a chart succeeds or fails.
Certainly in some contexts — a car
dashboard, a TV advert, even a board-
room pitch — speed of comprehension
should be a big part of a chart’s design.
But it is not always the case.
When you need a graphic to illumi-
nate a complex subject for your audi-
ence, the goal should be clarity rather
than simplicity — to present complex
information in a way that unfolds for the
reader through a mixture of visual hier-
archy and annotation.
This process of clarification often
involves adding information rather
than removing it — going against the
prevailing mood of concision.
In arguing for the need to give some
charts a density that cannot be absorbed
in the blink of an eye, Alberto Cairo, a
data visualisation specialist who teaches
at the University of Miami, likens his
craft to writing. Mr Cairo, author of The
Truthful Art: Data, Charts and Maps for
Communication, says data visualisation
has a grammar and a vocabulary. “It is
not meant just to be seen but to be read,
like written text.”
A recent example in which the dense
approach made sense is the dispute
between the UK government and junior
British diplomats need to improve
their foreign language skills so they can
withstand a “Paxman-like” television
or radio grilling in the country in which
they are based, the UK Foreign and
Commonwealth Office says.
Being able to field the sort of hostile
questions Jeremy Paxman used to fire
at guests on BBC’s Newsnight is difficult
enough in your own language. Why
risk it in a foreign one?
Indeed, many anglophones,
including Mr Paxman, now a Financial
Times contributing editor, believe
English is so widely spoken that there
is no point learning a foreign language.
The Foreign Office disagrees.
It commissioned a report from Tom
Fletcher, former UK ambassador to
Lebanon, who called for the diplomatic
service to be “more exacting in
requiring language exams to be passed
and linguistic attainment levels
maintained”.
This is right. You can get away with
speaking English if you make
occasional visits to a country or if you
meet people at international
conferences.
But if you live in a place, as a
diplomat or business person, you need
to speak the language. You cannot
understand the country and its people
if you don’t. You may think you can,
speaking to locals in English, but when
you have learnt enough to talk to them
in their own language you realise that
they are deeper, funnier and more
rounded.
How best to learn another language?
Regular, formal lessons are always a
good idea. Teachers often become
The chart doctor. Communication tips
Current
Currentrange
range
ofofextra
extrahours
hours
payment
payment
Overnight shift
8pm–6am
Midnight 6am 7am Noon
doctors, represented by the British
Medical Association, over their con-
tracts and pay.
The two sides reached a compromise
yesterday. When our team was first
looking at how to illustrate the story for
the FT, we examined a graphic pro-
duced by a rival news organisation.
It was a very simple image that resem-
bled a diary planner or smartphone cal-
endar, with coloured squares to illus-
trate how much the junior doctors were
being paid in each time slot, and how
this would change under government
and BMA proposals.
The simplicity was at the expense of
important details of the dispute, we felt.
It did not point out that doctors already
receive a range of pay rates for extra
shifts (they can get up to twice the basic
rate when working night shifts).
Instead, we set out to create a graphic
that would show the full detail of the
existing and proposed pay rates
throughout the week, hour by hour. Our
first attempt, a line chart illustrating the
range in pay for those working “unsocial
On the frontline of the doctors’
battle with the government — PA
★ FINANCIAL TIMES
BUSINESS LIFE
friends. Everyone learns languages
differently and you will have your own.
Here are my five additional tips.
3Immerse yourself in local media. It
used to be easy to avoid English
language news. When I spent a month
in deepest Provence in the early 1990s,
there was, apart from the BBC World
Service, no alternative to buying
French newspapers and watching and
listening to local television and radio.
Not even the FT penetrated that far.
Today, English is everywhere, from
your television screen to your phone.
So you have to make an effort. Watch
or listen to a local news bulletin at least
once a day. Read at least one full news
article a day in the language of the
country. A subject you know
something about is easier to start with.
You will discover that articles
translated from English are, curiously,
easiest of all.
3Maintain a two-word-a-day regime.
Learning two new words a day may not
seem much but this should be more
than knowing their meaning and
gender. You need to incorporate them
into your vocabulary, use them in
conversation and write them on a list
you regularly review.
3Cultivate non-English speakers. One
of the perils of learning other people’s
languages is that they prefer to practise
their English on you.
But there are still people who do not
speak English. Find a neighbour or
shopkeeper who does not speak
English and chat to them regularly.
Also, as readers have suggested to
me, when people insist on speaking
English to you, keep replying in their
Saturday
6pm Midnight 6am
hours”, also adopted a calendar style but
in a very different format.
We felt the graphic showed the detail
of the negotiations without being overly
complex, although some in the FT news-
room disagreed.
In April the dispute was back in the
news. At that point the BMA came out
with an alternative proposal and we had
another stab at the chart.
This time, we zoomed in on the partic-
ular differences in the weekend shifts.
The hours of the week were made much
clearer, an emphasis was put on the
night shift. The subheading was simpli-
fied in an attempt to soothe readers who
might have been scared off by the
chart’s initial complexity.
The reaction of FT readers to the
revised graphic was enlightening. Ian
Katz, editor of the BBC’s Newsnight cur-
rent affairs programme, tweeted:
“Takes bit of digesting but this FT
graphic [is the] first time I’ve properly
understood gap between BMA + govt on
jnr doc pay.”
Another reader tweeted: “You could
listen to the strike row between Hunt/
BMA/Drs for years and never get as
much clarity as this FT graphic.”
These were exactly the reactions we
had hoped to generate — readers feeling
rewarded for investing effort in decod-
ing the graphic and liberated by getting
a full sense of the data rather than an
overly simplified version.
Not everyone shared the enthusiasm.
As the junior doctors row escalated,
some bemoaned the fact that we had
truncated the Monday-Friday part of
the schedule into a single element. Oth-
ers chastised the broad range of extra
hours payments which neglects to show
that very few doctors can claim twice
the basic pay.
If we were to consider how we would
redo the graphic — a valuable exercise
‘
language until you wear them down.
3Eavesdrop shamelessly. Listen to
locals speaking to each other. Public
transport is excellent for this. It is a
way of tuning in to the rhythm of the
language and picking up regularly used
words and expressions.
When These can become your words of the
day. Early in my time working in
people Greece, I noticed how many sentences
insist on by one person were greeted by the
other saying sovara? It means
English, “seriously?” and is indispensable in
keep local conversation.
3Prepare for that grilling. If you do
replying in reach the language level that makes a
their local radio or television interview
possible, you need to do exactly what
tongue
’
you would for one in English: prepare.
Try to find out what questions you
are likely to be asked. If the interviewer
is not prepared to provide the
information, listen to their previous
interviews to get an idea of their style.
Think of the three most important
points you want to get across, write
them down and learn them off by
heart. Having chunks of the language
committed to memory is useful in all
situations. If you are speaking on the
radio, you can have your notes in front
of you.
There is no getting away from it:
doing an interview in another language
is scarier than doing it in your own. But
if you can get through one, sounding
reasonably comprehensible, you have,
as a language learner, arrived.
Everything after that seems easy.
michael.skapinker@ft.com
Twitter: @Skapinker
Sunday
2.0x
1.8x
1.6x
1.4x
1.2x
1.0x
7am Noon 6pm Midnight 6am
Weekend war:
the FT’s second
for any chartmaker — it could be helpful
to add further information about the
go at explaining extra hours payments and perhaps
the UK junior
doctors’ dispute
some more text explaining the key
points in further detail.
in a graphic in This would have made the chart even
April. The two
sides reached a
more complex but, importantly, we
could not find reliable data to illustrate
compromise this point. This brings us to our original
yesterday question: how quickly should you be
able to read a chart?
Andy Kirk, a British data visualisation
consultant, echoes Mr Cairo’s thoughts:
“You don’t have to simplify things if the
audience doesn’t need it.”
But he adds that audiences them-
selves need to be educated to the benefit
of spending time reading graphics:
when people do not engage with an
unfamiliar chart, it might just be a “defi-
cit in their own visual literacy” rather
than poor design. Indeed, the develop-
ment of audience visual literacy is seen
by many in the field as the next chal-
lenge in information visualisation. Mr
Cairo recently posted the example of his
10-year-old son learning how to inter-
pret treemaps, a step up from pie charts.
And Scott Klein, deputy managing
editor of ProPublica, a US investigative
journalism team, believes that there is
no such thing as an innately intuitive
graphic. “None of us are born literate in
reading visualisations . . . if we keep our
‘You don’t readers in mind, we can pursue new
forms that delight them and help shed
have to light on complex subjects in ways that
have never been tried before.”
simplify So how long should it take to read a
things chart? The answer, of course, is “it
depends”. But for the most rewarding of
if the charts, it is probably just a little longer
than you think.
audience
doesn’t Having trouble with a data visualisation?
The Chart Doctor might be able to fix it in a
need it’ future column. Email businesslife@ft.com
The review
Bitcoin and the grand visions
of blockchain enthusiasts
JOHN GAPPER
Blockchain Revolution:
How the technology
behind bitcoin is changing
money, business, and the
world
Don Tapscott and Alex Tapscott
Portfolio Penguin; Portfolio
£14.99/$30
In 1993, the New Yorker ran
a cartoon of a dog at a
computer telling another,
“On the internet, nobody
knows you’re a dog”. It called
attention to one of the
peculiarities of the world
wide web. The technology
allows anonymity because
there is no way to identify
users — robots, humans, or
animals — apart from
network address numbers.
This is helpful in some
ways: it fits with the
libertarian ethos of the early
internet and encourages
freedom of expression. But it
creates huge difficulties
when it comes to basic
functions, such as security
and copyright protection.
When an MP3 file could be
copied and dispersed at the
touch of a button by
anonymous pirates, it
upended the music industry.
Now here comes the
blockchain to solve these
problems by providing the
identity and transaction
technology the web lacks.
Excitement about the
blockchain — the
technology underlying
bitcoin, which uses a peer-
to-peer network of
computers to authenticate
transactions — has been
building in many unlikely
quarters, including banks
and legal firms. This
technology revolution is
raising spirits both among
revolutionaries and
incumbents.
Banks see a more secure
and better-designed means
of clearing transactions.
Other industries muse about
“smart contracts” — which
hold the possibility of selling
services to customers on the
internet far more simply and
The Riff
Let’s do lunch
MIRANDA GREEN
Some thrive on the
traditional power lunch;
some enjoy going blank over
a solitary sandwich.
But now Marie
Schneegans, described by
her business partner Paul
Dupuy as “such an extreme
extrovert the word doesn’t
really apply any more”, has
decided we need help to
spend lunchtimes more
fruitfully — not with
business contacts but with
colleagues.
The French pair have
developed an app, Never Eat
Alone, which although no
relation to the Keith Ferrazzi
networking bible of the
same name, “shares the
philosophy” according to Ms
Schneegans.
As a miserable, isolated
intern at UBS in Zurich last
year, spending her breaks
with her own team, she
began approaching the
offices of random co-
workers and suggesting
lunch — she ended up
breaking bread with the
CEO. Now she and Mr
Dupuy, after a launch in
France last year, have
managed to sell their
Thursday 19 May 2016
efficiently. Meanwhile,
blockchain enthusiasts
imagine the outsmarting of
corporate monoliths by
networks of buyers and
sellers linked by technology.
Hold on, the reader may
say. Have we not heard this
before, including from Don
Tapscott, whose 2006 book
with Anthony Williams,
Wikinomics, told us how
mass collaboration would
revolutionise commerce,
thanks to the internet? The
future lay with co-operatives
and networks of companies.
“Naive to be sure, but
many people, present
company included, hoped
the internet, as embodied in
the world wide web, would
disrupt the industrial world
where power was gripped by
the few,” Tapscott and his
son Alex write in this latest
book. Instead, network
effects and economies of
scale have facilitated more
powerful digital oligopolies
such as Facebook and
Google.
Since the last wonder
product did not work as
advertised, the Tapscotts
are more circumspect this
time. Although their tone is
largely what they call
“rational exuberance” about
the blockchain, they include
plenty of warnings that
optimism may be misplaced.
“Rather than predicting a
blockchain future, we’re
advocating for it,” they say.
One difficulty with
blockchain technology being
widely adopted, as they
admit, is that it is hard to
grasp. But if the idea could
be fitted to broader use it
could, for example, allow a
“blockchain Uber”. Instead of
one monopoly’s software co-
ordinating passengers and
taxis, customers and drivers
could fix trips as a co-
operative, enabled by their
identities. It could amount
to, as one “blockchain
theorist” exclaims, “a
complete revolution in how
we do everything”.
Somehow, I doubt that.
The Tapscotts provide a
thorough, balanced and
enlightening guide to the
next big thing. How big, we
shall see.
The reviewer is a Financial
Times columnist
internal lunchdate-making
app to 15 big employers,
including Danone, BNP
Paribas, Carrefour, Allianz
and Aviva.
“It makes a large company
feel just like a start-up,”
enthuses Mr Dupuy, who
says most people (unlike Ms
Schneegans) would feel
awkward approaching
anyone other than close
colleagues. Perhaps it would
seem creepy, I suggest, to
sidle up to strangers in the
corridor and ask them if
they fancy popping out for a
superfood salad.
A company buying Never
Eat Alone (at $1 per
employee per month) can
mimic the informal exchange
of ideas that characterises
the Pixar-style creative
world of offices designed to
throw people together —
“that’s what we are trying to
reproduce”, says Mr Dupuy.
Maybe the innovation
your company needs just
requires some internal social
engineering? Maybe this
idea is, well, ever so slightly
out to lunch. Or delightfully
French. Let’s discuss it —
are you free at 1?
Thursday 19 May 2016 FINANCIAL TIMES 11

ARTS

When music speaks DA N C E

Mark Morris premieres

louder than clichés Mark Morris Dance Center, New York

aaaae
Apollinaire Scherr

That Mark Morris is always finely

OPERA
Die Meistersinger von Nürnberg
Nationaltheater, Munich
aaaae
Shirley Apthorp
You can bring on swastikas or jack-
booted Nazis. You can say it with punks
or banners, or even stop the music
entirely. But you cannot ignore it.
Even if Hitler had not so explicitly
misused Wagner’s Meistersinger for
propaganda purposes, German stage
directors would struggle with Hans
Sachs’s final monologue. Now that every
possible form of directional subversion
has been applied to the problematic pas-
sage, in which Sachs urges his listeners
to preserve the purity of German cul-
ture, how do you approach it without
lapsing into empty cliché?
By the time the offending moment
came around in Bavarian State Opera’s
new production, David Bösch had
already let a leather-jacketed Stolzing
smash a plaster bust of Wagner. He had
brought David onstage astride a moped,
Pogner in a car, and he had permitted
mask-wearing youths with baseball bats
to beat up Beckmesser.
Bösch clearly has no fear of clichés.
Like many directors who come to opera
from spoken theatre, he applies a veneer
of updating (in this case, small-town
West Germany in the 1950s or ’60s, more
or less) to a production that is as con-
servative as it gets. Big-name stars bring
the same gestures they have used in
every other production to a staging that
fails to bring any new ideas to the work.
So the surprise was even greater when
the fateful moment came. The change in
climate was as instant and savage as if
thunderclouds had burst inside the the-
atre. It came from the orchestra pit. On
the podium, Kirill Petrenko turned the
sound into something horribly sinister,
the instruments applying an edge so
dark, so biting, so brutal that every hair
in the house must have been on end.
What was happening on stage no
longer mattered. Which is just as well,
because Bösch had long since run out of
steam. Petrenko’s conducting was as
striking and original as the production
was forgettable. He brought a clear
intensity, a tender attention to detail, an
absolute respect for the singers, and a
refreshing lack of self-indulgence to the
task. The outcome was a Meistersinger
more liberated from its dodgy past than
any onstage gimmick could ever have
made it.
That Jonas Kaufmann can sing Stolz-
ing with ease and grace we already
knew, just as we knew that Wolfgang
Koch is the definitive Hans Sachs. The
evening’s most agreeable vocal surprise
was Benjamin Bruns’s lush, musically
intelligent David, with Sara Jakubiak’s
Eva ensuring further musical pleasure.
This Meistersinger is absolutely worth
hearing. What a pity that Petrenko’s
capacity for originality and urgency was
not shared by the stage director.
To October 8, staatsoper.de
T H E AT R E
Monster Raving Loony
Soho Theatre, London
aaaae
Sarah Hemming
James Graham is fast becoming one of
Britain’s most astute political play-
wrights: a writer who explores the
machinery and function of power from
droll and oblique angles. His early play
WEEKEND ARTS
Venice Biennale
‘This vitrine of contemporary
architectural culture swings
wildly between the urge to
express (architecture as art) and
the urge to confess (social
conscience)’: Edwin Heathcote on
architecture’s dilemmas, part of a
special supplement this Saturday
This House, set during a hung parliament
in the mid-1970s, returns to London’s
West End this autumn; The Vote, set in a
polling station, was nominated for a
Bafta; and Privacy, about online data,
opens in New York in July.
His newest stage work is this highly
entertaining and deliberately ram-
shackle piece about Screaming Lord
Sutch, the sometime pop singer and self-
appointed leader of the Official Monster
Raving Loony Party, who for years was a
fixture at elections (he stood in, and lost,
40), posing alongside sombre politicians
in his top hat and leopard skin jacket.
Graham doesn’t give us a straight bio-
drama, but channels the spirit of this
maverick response to democracy. The
piece is staged as a cabaret in a working
men’s social club, Sutch’s life unfolding
in a series of quick-fire sketches liberally
laced with references to British popular
culture, from pantomime to the Carry On
films, The Goon Show, Morecambe and
Wise and Blackadder.
It’sinspireddaftness—acelebrationof
British eccentricity, the capacity for self-
mockery, and the role of the clown in rid-
iculing the establishment. Simon
Stokes’s genial production encourages
the audience to get in the mood, join in
with a skiffle band, play bingo — even
have a nice cup of tea from the trolley.
And the cast are impressively versatile,
switching roles and styles in the blink of
an eye and trotting out some delightfully
accurate impressions.
But through all the nonsense snake
some sad and serious themes, both per-
sonal and political. Sutch, in common
with many comic entertainers, suffered
from depression, and Samuel James’s
superb performance suggests the wild
energy of the man, but also the crippling
impact of the darkness that would
ultimately claim his life.
Meanwhile there’s a running consider-
ation of the continuing intersection
betweenclassandpowerinBritain:early
on, the working-class Sutch is roundly
informed by a snooty violinist that
“there are those who listen and those
who play.” His role comes across as that
of court jester, the guy who “sticks it
to the man”, exposing the hypocrisy
and pomposity of those in power.
The show is a little too baggy and
overstuffed and some references may
perplex anyone not familiar with
popular British television, but
this is a sharp and original
piece of political theatre.
To June 18, sohotheatre.com
attuned to his chosen music, played
live and gorgeously at his shows, does
not guarantee a great dance. Indeed,
sometimes the acclaimed choreogra-
pher would do well to pay less attention
to the score, or at least a different kind
ofattention.
A Forest, the world premiere in this
intimate home season, is such a case.
Clad in unitards imprinted with 18th-
century wallpaper designs on a botanical
theme, the nine dancers are swaying
trees, perching birds, blooming bushes
and mainly a whole bunch of notes. Mor-
ris approaches every trill, every grace
note, in Haydn’s winsome Piano Trio
No.44 like a music meister who swears
by mnemonics. What does not get acted
out, because it has no literal translation,
is the line (the violin’s) that carries the
trio’semotion.
Foradancethatiscleverwithoutbeing
Liberated: wise, you look to the dancers to compen-
Benjamin sate, and the sensuous, expansive and
Bruns and Jonas flirtatious Stacy Martorana, for one, suc-
Kaufmann ceeded in bringing fantasy and freedom
in ‘Die tothisovermanicuredForest.
Meistersinger Morris tends not to ride the music so
von Nürnberg’. aggressively with baroque and modern-
Below: Samuel ist composers, who, like him, keep their
James in language straightforward and reserve
‘Monster their complexity for structure. For the
Raving Loony’ tremendous 16-person The — to a four-
Wilfried Hösl; Steve Tanner hand piano rendition of the Brandenburg
Concerto No.1 — Morris has taken basic
ballet gestures still redolent of good
manners and turned up the volume.
Courtly nicety becomes openhearted-
ness, and the sheer number of people
a-swirl in overlapping patterns makes
communityoutofcollegiality.
Arms extended and palms up, the
dancers seem to exclaim, “I am here —
with you.” They announce it to us, to one
another and finally, in triumphant, joy-
ous same-sex duets, to one
other. The mixes strug-
gle with play. And
Morris has made
Brandenburg No.1
the perfect vehicle for
thisirrepressiblehope.
To May 22; mmdg.org

Woon walks to the groove of the city

Sophisticated
POP soundtrack:
Jamie Woon
Jamie Woon at the Forum
Kentish Town Forum, London C. Brandon/Redferns

aaaae
Ludovic Hunter-Tilney

To describe Jamie Woon as pedestrian is

meant as praise. Much perambulating
goes on in his music, mainly of the con-
templative, solitary variety. He has a
walker’s eye for the limitless possibili-
ties that unfold beneath London’s
oppressive canopy of clouds. Songs find
him “lost on my own lonely mile”
observing “10,000 greys in the sky”, a
photographic negative of the cosmopol-
itan life teeming on the city’s streets.
“If you don’t know where you’re walk-
ing to,” he sang at the Forum, “move-
ment is the motivation tonight.” His
path to the midsized venue has been
slow, defying a musical climate that
places value on constant productivity. It
took him four years to record his first
album, 2011’s Mirrorwriting, and then a
further four years for the follow-up, the
aptly titled Making Time. A ruptured
Achilles tendon derailed plans to tour
his debut. It was sustained during an
unwise burst of speed, playing football.
The eerie electronic tones resonating
as the lights went down at the Forum
suggested that an introspective evening
lay ahead — but then a clean funk
rhythm cut through the darkness
and Woon began singing “Movement”.
His airy high tones were set to an irre-
sistible walking bassline, a groove to
settle into. Playing acoustic guitar, he
was accompanied by a compact but
impressive backing troupe numbering
two singers, a drummer, a keyboardist
and a bassist.
Imagery of natural life and searching
for the source of things suggested a
hippy-ish mentality (Woon’s mother is a
folk singer). The swooning harmonies
and chants of “love” at the end of “Mes-
sage” briefly evoked the memory of
Crosby, Stills and Nash. But the music
mainly followed a sophisticated urban
soundtrack of soul, electronic music
and R&B, with splashes of acid-jazz
noodling supplied by the flat-cap-
wearing keyboardist.
Influences were musicians who
march to their own beat. D’Angelo could
be heard in the dreamy mantra “Dedi-
cation”, while Innervisions-era Stevie
Wonder was summoned by the joyfully
upbeat “Sharpness”. In the encore,
Woon played two songs alone on the
acoustic guitar, initially silencing chat-
tering audience members, then moving
them to whoops and applause. “I ran
when I should have walked,” he sang, a
tortoise learning to bide his time in a
world of hares.
jamiewoon.com

spooned over it like so much sauce. Romanian dancemaker Edward Clug

DANCE
Nederlands Dans Theater 2
Sadler’s Wells, London
aaeee
Louise Levene
The cadet branch of Nederlands Dans
Theater began the final leg of their six-
week, 11-city UK tour at a packed
Sadler’s Wells on Tuesday night — their
first visit for four years.
The long night started with a trio of
pieces by Sol Léon and Paul Lightfoot,
who have been making work for NDT
for over a quarter of a century. Schubert
is a six-minute duet in which the couple
show off their slippery turns and
rock-solid balances or lock together
in sudden and unlikely holds. Mean-
while, the adagio from Schubert’s
String Quintet in C was dismally repro-
duced via the Wells’s excruciating sound
system. As with so much of this com-
pany’s output, the music seemed inci-
dental to the accompanying movement,
A fleet of black wheelie screens glided
on and off and the mood shifted to
1998’s Sad Case (five dancers frisking
and yelping to Pérez Prado) and thence
to the interminable Some Other Time
(four dancers moping athletically to
Max Richter).
Nederlands Dans Theater 2 in ‘Cacti’
admires NDT2’s “innocent energy” and
he deployed it in a brisk, efficiently
crafted quartet but was immediately
upstaged by Hans Van Manen’s three-
man, seven-minute Solo, an unashamed
celebration of boyish virtuosity joyously
delivered by Gregory Lau, Hélias Tur-
Dorvault and Miguel Duarte.
Solo would have made an excellent
finale but we ended instead with Alex-
ander Ekman’s Cacti, a po-mo comedy
for 16 dancers, 16 plinths and a number
of potted succulents to a playlist of clas-
sics interrupted by voiceovers decon-
structing the performance (that old
chestnut). It was ingeniously lit by Tom
Visser and performed with puppyish
grace but it was a sad waste of all that
“innocent energy”.
Watching NDT2’s excellent dancers
being put through their paces is rather
like clicking on kittens fighting over a
tissue box: it whiles away the hours
pleasantly enough, but the time could
be more satisfyingly spent.
To May 20, sadlerswells.com
12 ★ FINANCIAL TIMES Thursday 19 May 2016

Helped to fly Greater London housing transactions

Four-quarter moving average (000’s)
Shares in UK housebuilders have beaten those of estate Existing New
agents, who are suffering from lower transaction volumes. 30 3.0
Builders have been able to increase both output and selling
prices with support from the Help to Buy scheme 2.5
25
Twitter: @FTLex Email: lex@ft.com Housebuilders outperform 2.0
Equity indices rebased* 20
200 1.5

Midea/Kuka: giving up autonomy in return. Housebuilders

15 1.0 UK pubs:
Unconflicted control of its strategy and
the price of partnership intellectual property is Kuka’s most 2011 12 13 14 15 16 loosening the tie
precious asset.
Ownership without control has a strong If Midea wants alignment, it should
150 Housebuilders’ sales The traditional British pub — male,
Annual % change*
oxymoronic flavour. This has done buy the whole company. beery and smoky — is stranded by
little to prevent the phenomenon from Volume change Price change time, the fabric of its business model
proliferating in corporate finance. Real estate services 0 5 10 15 worn thin by changing tastes. Indoor
Google and Facebook offer investors Pandora Media: Bellway smoking is banned, beer is highly
shares that confer no possibility of 100 taxed, men drink less. A pubco that
influence on management. Owners of sounds like a sale even treads water merits applause.
this “equity” (an ironic term, under the Barratt Marston’s, which reported half-year
circumstances) can point to its past Great evil escaped from Pandora’s Box. figures yesterday, deserves a clap.
appreciation and hope for more of the A New York hedge fund is more Persimmon Revenues and profits are up 11 per
* Datastream indices 50
same. China’s Midea Group cannot concerned about what is going in. cent, 3 per cent on a like-for-like basis.
legitimately avail itself of this excuse. It Corvex Management has disclosed a 2013 14 15 16 Taylor Wimpey Leverage — the bane of pubcos
wants to buy a big chunk of German 10 per cent stake in Pandora Media, the before the crisis — is under control at
FT graphic Sources: Thomson Reuters Datastream; Land Registry; companies *Figures are for most recent year, except Barratt and Bellway which are six months
industrial-automation company Kuka music-streaming service, and called for 5 times earnings before interest, tax,
— without, it insists, compromising the company to stop pursuing costly depreciation and amortisation.
Kuka’s complete independence or its acquisitions and instead sell itself. How is the housing market doing? Margins are another. Estate agents has been far greater. Across the Management credit a deliberate
public listing in its home country. It is hardly a surprise that an activist For the British dinner party guest of are suffering competitive pressure; industry, more than a third of strategy, now seven years old, to pivot
A tie-up between the two companies has come knocking. Pandora’s shares popular stereotype, it depends on there are a lot of them already and new builders’ sales are subsidised by Help from traditional pub-like activities
could have logic. Midea may benefit are down more than 40 per cent in whom you ask. Estate agents’ shares fixed-fee agents are undercutting to Buy. For some, it is closer to half. towards startling ideas like fresh food,
from fuller automation of its 12 months. Some 80m users in the US are drooping and the outlook is traditional ones. By contrast, margins Mandarins intended that such quality coffee and premises nice
production, which churns out €19bn of use Pandora’s site or app at least once a uncertain. By contrast, housebuilders and return on assets at housebuilders demand subsidies (and more liberal enough for an overnight stay. Instead of
appliances a year. Kuka could benefit month. It has also shown great staying appear slightly embarrassed by their have rarely been higher; land costs are planning rules) should lead to more the “beer tie”, where tenant landlords
from a big partner in a market where it power, surviving existential crises over rampant profitability. subdued, selling prices have risen, building. swap a lower rent for an obligation to
targets €1bn in sales by 2020, implying copyright licensing and withstanding There are several explanations for while a reluctance to crank up volume The industry has pledged to double buy ale only from the pubco, Marston’s
25 per cent compound annual growth. multiple “Pandora killers” led by the mismatch. “The London effect” is has kept input costs under control. output from 2010 levels by 2019. Yet experimented with franchises.
And the two could collaborate on Spotify and Apple Music. one. Prices in the capital are pushing Then there is Help to Buy, a on Tuesday, Taylor Wimpey Shockingly, they started building
non-industrial robots, hybrids of the Left to its own devices under founder the boundaries of affordability, while government scheme to support announced a £300m special dividend new pub-restaurants.
two group’s core products. Tim Westergren, who recently regulatory and fiscal changes have mortgage lending that started in 2013. and emphasised capital discipline Marston’s shrewdest move was the
Midea wants more than 30 per cent returned as chief executive, Pandora curbed demand for the trophy Although, cumulatively, the over volume growth. move away from the tie, a path others
of Kuka, which under German law will become a one-stop shop for music properties beloved of oligarchs and mortgage guarantee version of the Help to Buy has brought windfalls will have to take after new legislation
requires they make a full tender offer. — selling concert tickets, via last year’s princelings. That is bad news for scheme (available on all properties for investors but also raised the banning its compulsory application.
The offer is €115 a share in cash, a $450m acquisition of Ticketfly, Foxtons and Countrywide, which are under £600,000) has supported political risk attached to builders. Enterprise Inns, which started with
36 per cent premium that values the subscriptions to users of its free, ad- more exposed to the capital than the roughly the same number of sales as Maybe that is one reason that their 5,000 tenanted pubs (against 1,600 of
target at 45 times 2015 earnings. If all supported internet radio service and housebuilders, most of whom are the equity loan version (only available shares, while outperforming agents’, all kinds for Marston’s) has barely
the shareholders go for the cash, the launching an on-demand product. The more geographically diverse. on new build), the impact of the latter are basically flat over the past year. embarked on this path. Results
87 per cent of Kuka that Midea does company has a revenue target of $4bn yesterday suggest a corner being
not own will cost €3.6bn. A just-short- in five years (from $1.4bn this year). turned. Like-for-like sales are up 1.8
of-majority stake will run to €1.5bn. It would be nice if Pandora’s self- per cent; stripped of the worst tenth of
Midea has the money. It has a market made comparisons to Amazon and activist. It feels like a less complicated Consider two solutions to the Those that create new demand, such as pubs, the figure would be 3.8 per cent.
value of €19bn and its debt burden is Netflix were not delusional. But the version of Yahoo, with a larger set of conundrum. An engineer might scoff at the invention of video games, may be “Unplanned business closures”
light relative to profits. All the same, a company has had time enough to bidders. the missing productivity. Barring better for generating profit. among its tenants are down. It is
partnership does not require an equity develop a business model. It is puzzling exceptions such as nuclear power, Industrial structure matters too. building a solid group of directly
stake and a few billion euros can buy a that it has not already been snapped many technologies show steady Near monopolists, such as Microsoft managed pubs, albeit still numbering
lot of robots. Perhaps Midea’s leaders up, for its loyal audience and rich data Innovation: progress — communication speeds, during the heyday of the Windows just 75. The commercial property side,
think Kuka’s shares are a good buy, but on listening habits. Its enterprise value turbine efficiency, even the internal operating system, are better able to with 264 pubs rented to landlords
it is an appliance company, not an is a modest $2.2bn. not always for profit combustion engine. If standard extract profit than others just as choosing to break the tie, is doing well.
investment fund. Another justification This raises the question of how hard measures fail to detect this, then the inventive; recall poor Netscape. It could grow almost tenfold by 2020.
is that partial ownership creates Pandora tried in February when the Productivity is not everything, wrote measures are at fault for not reflecting The innovations that please an Pubs may be declining; leisure is not.
alignment of interests. Midea has company is said to have explored a Paul Krugman, but in the long run it is miracles like streaming music, kitten engineer can be a clear danger to profit. Latched on to the right social trends,
bought equity stakes in connection sale. Between an internet company almost everything. Profit is another videos or less polluted air. A good recent example is the impact Marston’s may become a growth stock,
with other partnerships and is such as Google; a handset maker such matter. The golden age for US An economist would add that that shale gas has had on conventional its shares good value at 11 times
presumably pleased with the results. as Samsung; Apple, which does both; or productivity growth was half a century innovation and profit need not be energy companies. Or consider solar earnings. They have a five-year head
For Midea, this notion may make a telecoms company such as Verizon, a ago. That era was not so great for aligned. Those breakthroughs that energy. Photovoltaic panels have been start, however. The shareholders of
some sense, given the modest sum buyer must exist. corporate profit. Today the problem is make a process cheaper may not help getting cheaper for decades. This year, Enterprise will need to be patient.
involved. On Kuka’s side, considering As Corvex points out disapprovingly, the opposite: high corporate profits, profits if widely shared across an the five worst performers in the MSCI
the size of the opportunity in robotics Mr Westergren has not bought any amid anguish about missing industry, or might just cannabilise Alternative Energy Index are all solar
and the importance of the Chinese shares since his return, leaving his productivity growth. “Technological existing profit streams, as seen in the groups. No doubt all are innovative. Lex on the web
For notes on today’s breaking
market, a few billion euros of equity stake at just 0.2 per cent. Pandora lacks stagnation” entered the lexicon just as effect of digital media on print But hanging on to market share and stories go to www.ft.com/lex
seems very modest indeed, if it is the firepower to fend off a determined we all acquired a smartphone. publishing. Consumers win instead. pricing power is what counts for profit.

HIGH Today’s temperatures

HIGH 1020
LO Abu Dhabi Sun 42 Malta Fair 25
16 Amsterdam Fair 17 Manila Thunder 34
1010
1010 Ankara Sun 19 Miami Thunder 30
LOW 1
15 8 Athens Sun 24 Milan Shower 16
19 1010
Bahrain Sun 38 Montreal Fair 19
Barcelona Fair 22 Moscow Shower 19
1000
12 Beijing Sun 28 Mumbai Fair 34
Belfast Rain 15 Munich Rain 12
2 Belgrade Fair 23 Naples Fair 20
18 15 Berlin Fair 23 New York Cloudy 19
7 23 Brussels Fair 18 Nice Sun 23
16
Budapest Fair 22 Nicosia Sun 28
16 1 Cairo Sun 30 Oslo Shower 17
OW Cardiff Rain 16 Paris Drizzle 17
1010
17 22 Chicago Sun 19 Prague Fair 19
3 1010 Cologne Cloudy 20 Reykjavik Cloudy 9
1020
22 HIGH
Copenhagen Sun 17 Riga Fair 17
LOW
19 Delhi Sun 42 Rio Rain 23
22 19 Dubai Sun 40 Rome Fair 19
Dublin Rain 16 San Francisco Fair 19
19 Edinburgh Shower 13 Singapore Shower 33
23 27 20 Frankfurt Cloudy 19 Stockholm Cloudy 16
25 HIGH 24 Geneva Shower 14 Strasbourg Cloudy 17
28
Hamburg Fair 21 Sydney Sun 23
24 22 16 Helsinki Sun 16 Tokyo Sun 25
16 25 26
Hong Kong Drizzle 27 Toronto Fair 17
Istanbul Sun 22 Vancouver Cloudy 16
29 1000 Lisbon Sun 23 Vienna Shower 21
Wind speeds in KPH London Cloudy 19 Warsaw Sun 18
Forecasts by Los Angeles Fair 22 Washington Cloudy 20
Wind speed Luxembourg Fair 16 Zagreb Shower 19
in KPH Madrid Sun 27 Zurich Shower 13

CROSSWORD ACROSS
1 Untrue statement about good
5 Receiving circular letter,
responds freely with financial
No. 15,244 Set by GURNEY girl’s boat material? (10) support (9)
6 Tobacco for pound (4) 7 Travelling in Boeing? Not yet
       
9 Right to replace daughter in decided (2,2,3,3)
representative group heading 8 Unit struggled finally, sadly
down (10) came tenth (10)
  10 One put in lucrative order (4) 11 Finishing off, run the autocue

12 Into cuisine that’s foreign? (12) differently – in top fashion? (5,7)
15 Duke, say, catches competitor 13 Glorification of a leading
 after docking before time in upcoming fellow over old
vessel (9) relative (10)
 
17 Unit – expression involving heat 14 Officer’s story on truck
   primarily? (5) supported by northern worker
18 Signal for pick-me-up? (5) (10)
19 Extremely affected manner of 16 Legislation confused teen can’t
  speaking – habit hard to break? master at the beginning (9)
(9) 21 Angry in court after the rioting
20 Last minute volunteer, he, first (3,2)
 
to hurry off (8,4) 22 Dad’s second way through (4)
24 Mother is backing old country 23 On the rise, make special
  name (4) mention of school (4)
25 With time for relaxing
 
atmosphere books tables here?
(10) Solution 15,243
26 Adam’s son contributes to 0 ( $ 1 6 7 ( 6 7 6 7 5 8 (
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6 $ * $ % 5 $ 1 ' 1 $ 0 ( 6
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4 In flat, changes fastening (5) 7 5 2 ' 5 , 6 , 1 * 7 , ' (

Thursday 19 May 2016 ★ 13

Suzuki Motor CK Hutchison RBS Two-year Euro / dollar Brent crude Stoxx 600 Sterling/euro
Lessons from VW Boards US Treasury
need to hear outside views 9.4% 3.10% 4.3% 3bp 0.3% 0.5% 0.9% 1.3%
INSIDE EUROPE, PAGE 14
¥2,613 HK$89.10 223.7p 0.86% $1.1278 $49.54 337.58 €1.2946

China’s Midea Reconnected Microsoft’s $350m phone unit sale Short

signals hope for Nokia name once worth $300bn
View
bids €4.6bn for Alan
Livsey

German robot Commodity prices have been on a tear of late. Last year’s
dogs, such as oil and iron ore, have soared. With oil
approaching $50 a barrel this week, Goldman Sachs has

group Kuka turned more bullish on its prospects and Chinese specula-
tors have pushed up the price of iron ore by as much as
50 per cent.
This rebound has led to strong gains in related stock
market sectors. Energy and mining share indices have
risen fastest, after trailing the entire market in 2015.
3 Move set to spark concern in Berlin What has lured in the buyers? For one thing, some very
depressed valuations made the decision to dive back into
3 Vow to retain target’s independence commodity stocks a lot easier.
One measure on which the two sectors look historically
cheap is the price-to-book ratio. Some investors prefer this
DON WEINLAND — HONG KONG double its 2014 sales by 2020 to to other price ratios as the net asset (or book) value of
PATRICK MCGEE — FRANKFURT
between €4bn and €4.5bn, analysts companies tends not to change dramatically every year. In
A Chinese home-appliance maker is said. Martin Wilkie, analyst at Citi- the case of the metals and mining sector, the PB ratio in
looking to clinch its second big overseas group, said that Midea’s investment February touched lows not seen since 1979.
takeover in two months with an offer for could help Kuka reach its financial tar- Of course, there is a reason for that. Return on equity
Kuka that values the German automa- gets and to expand in China. Almost half (profits as a percentage of book value) has also tumbled to
tion group at €4.6bn. of Kuka’s revenues stem from Europe, historic lows, below zero. Understandably, the market will
Midea said yesterday that it had with just 15 per cent derived from China. not pay up for companies apparently destroying value.
offered €115 a share for Kuka, which The proposed takeover would be Also, an ultra-low PB ratio may simply indicate investor
makes industrial robots used by Audi, Midea’s second in as many months after distrust of the value of that equity.
BMW and Boeing. The offer is a 60 per it announced in mid-March that it But this measure does not capture the rising amount of
cent premium on Kuka’s undisturbed would buy out the home-appliance unit debt in these companies. Nor does it take account of cash
price on February 3, before Midea said of Japan’s Toshiba for
f ¥53.7bn ($490m). flow, which can be a useful indicator given the volatility of
that it had raised its stake to 10 per cent. It would also add to the growing col- earnings at these companies, due to their occasional asset
That stake has risen to 13 per cent and lection of global white-goods assets con- impairment charges.
Midea was obliged under German law to trolled by Chinese groups. Qingdao Looking at enterprise value (which includes net debt)
make an offer for the rest of the shares Haier bought General Electric’s home- together with a proxy of cash flow can give a better read of
because it planned to increase its hold- appliance division in January for cheapness. And among energy and mining groups, EV as a
ing beyond 30 per cent. Kuka said it $5.4bn, the largest outbound acquisi- multiple of earnings before interest, tax, depreciation and
would review the offer and consider tion in the sector by a Chinese company. amortisation has risen. For oil stocks, this ratio is near its
public opinion. A person familiar with While Midea and Haier are the two high for this millennium. That makes sense: oil and gas
the offer said that Midea was “well largest mainland Chinese home- producers carry a lot more debt than in previous cycles.
aware” that Berlin would be wary about appliance companies by market share, Net debt to ebitda has soared.
a Chinese company taking over a rival their presence abroad is limited. Of course, cyclicals usually look expensive at the bottom
connected to industrial data. In the US, for example, where Haier of the cycle and higher commodity prices would boost cash
Midea has committed to Kuka’s inde- has embarked on expensive advertising Nokia dominated the handset market for years but fell far behind rivals — Christian Hartmann/Reuters flows. What’s really needed, though, is years of balance
pendence, including its listing and and sports-sponsorship campaigns, the sheet repair.
Augsburg headquarters, and keeping company had only a 1 per cent share,
the top shareholders in the company. It according to Euromonitor. DANIEL THOMAS — LONDON tronics has been struck with sold its flagging devices busi-
would not attempt a takeover if its offer “We’re already a major company in HMD, a newly created Finnish ness to Microsoft for €5.4bn in The real problem
Nokia’s once dominant mobile
was rejected, it said. Midea also ruled China,” said Paul Fang, Midea chief company led by former senior 2014. Net debt/ebitda ratio
phone franchise will be given a 5
out seeking a domination agreement, executive and chairman. “This partner- Nokia and Microsoft telecoms The price paid by Foxconn
new lease of life, as Microsoft
required in Germany when a buyer ship is looking for growth in markets executives. underscores how far the Nokia Metals and miners 4
exits the feature phone
seeks to integrate a target and control its abroad.” Foxconn will acquire the business has fallen since it
business it acquired from the
cash flow. This year is on track to set a record for manufacturing, sales and dis- dominated the handset market 3
Finnish telecoms group two
Till Reuter, Kuka chief executive, said outbound China deals. In the first three tribution units of the Microsoft more than a decade ago. Net debt to ebitda
years ago. 2
this month that the South China group months of 2016, Chinese companies business while HMD will focus “Nokia was worth $300bn has soared,
had “a very interesting operation”. Kuka spent $106bn on outbound deals, The Windows software maker on marketing and selling once. Now Microsoft sells on 1 particularly for oil
had been in contact about automating approaching the full-year record of has agreed to sell the unit it Nokia-branded devices. the feature phone unit — that Oil and gas and gas producers,
more than 100 logistics centres, he said, $109bn set last year. acquired from Nokia to Fox- About 4,500 employees will same business, in effect — for 0 which carry a lot
but the relationship was “arm’s length”. Kuka’s stock closed 12.8 per cent conn, the Taiwanese technol- transfer to Foxconn or HMD $350m,” said Benedict Evans, a 1981 90 2000 10 16 more debt than in
Source: Thomson Reuters Datastream
“There is a potential, clearly, in China. higher at €96.99 after reports that ogy group, for $350m. from Microsoft, which will con- partner at Andreessen Horow- previous cycles
But in China, not only with Midea.” Midea planned to announce the offer. Meanwhile, a deal to revive tinue to develop smartphones itz, the venture capital firm, in
A deal could accelerate Kuka’s plan to Lex page 12 Nokia’s name in consumer elec- using its Lumia brand. Nokia a tweet. alan.livsey@ft.com

Burberry announces £150m buyback

plan and cost cuts amid 7% profits fall
DAVID OAKLEY, SCHEHERAZADE the “challenging environment for the Mr Bailey said that his new strategy of
DANESHKHU AND MARK VANDEVELDE
luxury-goods sector” would continue. £100m of savings over three years and
Burberry yesterday unveiled a new Profits in the current year ending reducing the number of variations on its
fashion model in the form of its biggest March 2017 would be at the bottom of ponchos, scarves and other fashion
cost-cutting drive in years, a £150m analysts’ expectations, the company lines, would help boost growth.
share buyback scheme and promises of said — indicating another year of profits Andy Hall, analyst at Verdict Retail,
greater productivity through online decline. said: “Burberry is set to return to retail
Macau casino chiefs say expansion, as it reported a 7 per cent One top 20 shareholder said: “The basics, as it looks to recover from a poor
slide in revenues is easing fall in pre-tax profits. results are disappointing. It is a tough performance for its full-year trading.”
market with demand in China weaker, Burberry is considering the appoint-
After years of rapid growth in the The new collection failed to wow inves- which has hit the luxury-goods sector. ment of a senior commercial manager in
world’s biggest gambling centre, tors, however, who sent the shares down But there is also a worry over Bailey as the coming weeks to support Mr Bailey
revenues started to fall sharply in 2014 3 per cent. This took the drop in value CEO and head of design. Some think he and help deliver the targets set in his
as Macau was hit by the economic over the past 12 months to 38 per cent, needs back-up on the marketing and new plan.
slowdown in China and the crackdown increasing the pressure on Christopher strategy side.” Pre-tax profit fell to £415.6m in the
on corruption. But some casino Bailey, chief executive. Another top 20 investor said: “The year to March 31 on flat revenue of
executives say the slide is easing. Mr Bailey, whose dual mandate as share price tells the story. The group £2.5bn. Burberry proposed a 5 per cent
Analysis i PAGE 16 chief creative officer has been the focus needs to think hard about its strategy increase in its full-year dividend to 37p a
of some shareholder criticism, said that and end its overreliance on China.” share.

Companies / Sectors / People

Companies
Adidas............................................................17
Alphabet...................................................9,22
Amazon.............................................1,9,12,22
Anheuser-Busch InBev........................16
Apple...............................................9,12,14,22
Aramco.............................................................7
BNSF...............................................................14
BP......................................................................15
Bank of China...........................................22
Barclays.........................................................14
Berkshire Hathaway........................14,22
Burberry..................................................13,23
Centrica.........................................................15
Chelsea Football Club...........................17
Chevron...................................................15,24
China Construction Bank...................22
China National Petroleum Corp.......7
Cisco Systems..............................................1
Citigroup.........................................................9
Commerzbank...........................................16
ConocoPhillips...........................................15
Corvex Management.............................12
Countrywide...............................................12
Credit Suisse.........................................14,17
Deutsche Bank..........................................14
Didi Kuaidi...................................................16
Engie...............................................................15
Enterprise Inns..........................................12
Eon...................................................................15
Facebook............................................9,12,22
FlightSafety................................................14
Foxconn.........................................................13
Foxtons..........................................................12
Galaxy Entertainment Group...........16
General Electric...........................................1
Google..................................................9,12,22
GrabTaxi.......................................................16
HSH Nordbank.........................................16
Heta Asset Resolution.........................17
Hormel Foods...........................................23
Hypo Alpe Adria......................................17
IBM...............................................................9,22
ICBC.................................................................22
Iberdrola........................................................15
Julius Baer...................................................17
Just Eat.........................................................23
Kohl’s..............................................................23
Kuka...........................................................12,13
Lowe’s............................................................23
Lubrizol.........................................................14
Lundin............................................................15
MGM China.................................................16
Macy’s............................................................23
Manchester United.................................17
Marston’s......................................................12
Maruti Suzuki.............................................17
Meggitt..........................................................23
Melco Crown Entertainment............16
Microsoft..............................................9,12,13
Midea.........................................................12,13
Mitsubishi Motors...................................17
Netflix..........................................................1,12
Netscape.......................................................12
Nike..................................................................17
Nissan.............................................................17
Nokia...............................................................13
NordLB..........................................................16
Nordstrom...................................................23
Ola....................................................................16
Onexim.............................................................2
Pandora Media..........................................12
Petrobras....................................................2,7
Petronas..........................................................7
Precision Castparts................................14
Procter & Gamble......................................1
RBC....................................................................2
RWE.................................................................15
Reckitt Benckiser....................................23
Rosneft.............................................................7
Royal Bank of Scotland......................23
SABMiller......................................................16
SEB...................................................................14
SJM..................................................................16
Samsung.......................................................12
Sands China................................................16
Scania.............................................................14
Shell................................................................24
Snam...............................................................15
Sonova...........................................................23
Sony...................................................................9
Spotify............................................................12
Statoil..........................................................7,15
Suzuki Motor..............................................17
TCI....................................................................14
Target............................................................23
Taylor Wimpey..........................................12
Tencent.........................................................14
Terna...............................................................15
Tesla...............................................................23
Ticketfly........................................................12
Toyota............................................................14
UBS.............................................................14,17
US Steel...........................................................3
Uber.................................................................16
Under Armour...........................................17
Union Investment....................................15
Verizon...........................................................12
Viacom.............................................................9
Vivendi.............................................................9
Volkswagen.................................................14
Walmart........................................................23
Warner.............................................................9
Wynn Macau..............................................16
Yahoo.......................................................12,22
Sectors
Automobiles....................................14,14,17
Banks...................................................14,16,17
Energy............................................................15
Financial Services....................................17
Financials.....................................................14
Food & Beverage....................................16
Healthcare...................................................10
Industrial Goods.........................................3
Media....................................................1,2,9,12
Oil & Gas............................................7,15,24
Personal & Household Goods.........13
Property.....................................................3,12
Retail...............................................................17
Technology............................9,12,14,16,22
Telecoms...................................................4,13
Travel & Leisure...........................12,16,17
Utilities...........................................................15
People
Adelson, Sheldon.....................................16
Aikawa, Tetsuro.......................................17
Bailey, Christopher.................................13
Bezos, Jeff...................................................22
Buffett, Warren...................................14,22
Bünting, Hans............................................15
Clark, Alan...................................................16
Dieter Pötsch, Hans..............................14
Dunkel, Gunter..........................................16
Kalanick, Travis........................................16
Lau, Martin..................................................14
Lewis, Michael...........................................15
Masuko, Osamu........................................17
Molibog, Nikolai..........................................2
Nadella, Satya............................................13
Niel, Xavier....................................................4
Suzuki, Osamu...........................................17
Teyssen, Johannes.................................15
Thiam, Tidjane..........................................17
Westergren, Tim......................................12
Witter, Frank..............................................14
Zeman, Allan..............................................16

© The Financial Times Limited 2016 Week 20

14 ★ FINANCIAL TIMES Thursday 19 May 2016

COMPANIES
INSIDE BUSINESS
Automobiles
EUROPE

VW signals ‘change’ in executive pay Sarah

Letter to activist investor
says new strategy will be
unveiled this summer
PATRICK MCGEE — FRANKFURT
MILES JOHNSON — LONDON
Volkswagen has conceded that its pay
policy for top executives “requires
change” as pressure mounts from share-
holders for an overhaul of the German
the company this month in which it
alleged that excessive management pay
had contributed to the emissions scan-
dal, and accused the carmaker of being
less efficient than its rivals.
VW suffered the biggest loss in its
eight-decade history last year from costs
linked to the scandal. It had installed
test-cheating devices in up to 11m diesel
vehicles.
The decision of VW’s supervisory
board to pay 12 current and former
Gordon
the group had hired Herbert Diess, a decisions at VW, under a law intended to
BMW executive with a reputation for prevent a hostile takeover.
cost-cutting, to take charge of the
underperforming VW brand.
Hans Dieter Pötsch, VW chairman,
“Lower Saxony must understand as
politicians they are not industrialists,
and to continuously interfere with the
Emissions scandal
invited the TCI head to Germany for a
meeting next Friday.
running of the company will end up
destroying the company and all the jobs
offers lessons on need
Sir Chris told the Financial Times he
welcomed the VW response, but said he
wanted details of reforms.
it creates,” said Sir Chris.
“Unless the broken VW governance
system is fixed, shareholders should
for an outside view
At the heart of his concerns is VW’s not support investment in the company
20-member supervisory board, which is as none of the benefits will ever accrue

carmaker’s corporate governance fol-
lowing the emissions scandal.
Frank Witter, finance director, wrote
to activist investor TCI, which is
demanding governance reform and
improved profitability, saying he was
open to “constructive dialogue”.
“On many of your points we are in
agreement,” he said in a letter to Chris
Hohn, founder.
TCI, which has built a €1.2bn stake in
VW preference shares, sent a letter to
executives a total of €63.2m for 2015 supposed to hold management to
was strongly criticised by investors. account.
In his letter Mr Witter said VW was TCI is calling on the state of Lower
developing a new strategy, to be Saxony, which has two seats on the
unveiled this summer, that would supervisory board and is home to the
include changes of management pay. carmaker’s headquarters, to align itself
“We are under no doubt that our with the Porsche and Piech families that
financial performance needs to control a majority of voting shares.
improve,” he added, saying VW needed Sir Chris said he believed the families
more efficient use of research and devel- were more willing than Lower Saxony to
opment, and capital spending. embark on sweeping reforms at VW.
Mr Witter pointed out that last year The state has a blocking right on big
Financials. New strategy
V
to them.” olkswagen’s corporate governance may be
Some analysts and investors have uniquely awful. But there are lessons to be
long called for governance changes at drawn from its structural flaws that can
‘On many of the automobile group. improve best practice across Europe.
your points “It’s obvious that Lower Saxony’s This week, the dire state of the German car-
interest is first and foremost keeping maker’s governance regime was highlighted again, when
we are in jobs in Lower Saxony,” said Christian the Financial Times reported that Norway’s sovereign
agreement’ Ludwig, analyst at Bankhaus Lampe. wealth fund was suing the company over the emissions
“Whatever Volkswagen is going to do, scandal that exploded last year. It is still unclear what role
Frank Witter, it’s not going to be at the cost of cutting VW’s board structures played in the company’s cheating
VW finance jobs in Lower Saxony.” on emissions tests. But the outrage has drawn renewed
director Lower Saxony declined to comment. attention to the fact that they are not fit for purpose.
VW’s problem is one of independence — or rather the
lack of it. Its supervisory board — like those at all larger
German companies — is made up of 10 worker and 10
shareholder representatives. Of the latter, four are mem-
bers of the Porsche and Piëch families, two represent
Qatar’s sovereign wealth fund, and two the state govern-

Buffett’s protégés flex investment muscles
Todd Combs and Ted
Weschler free to make bigger
bets with Berkshire funds
STEPHEN FOLEY — NEW YORK
A takeover of Berkshire Hathaway’s
largest pension funds allowed Warren
Buffett’s two investment protégés, Todd
Combs and Ted Weschler, to make big-
ger bets such as the $1bn stake in Apple
that was disclosed this week.
The former hedge fund managers are
expected to assume control of the
$2.3bn fund at Precision Castparts, the
aerospace supplier Mr Buffett acquired
this year, on top of other Berkshire sub-
sidiary pension funds that have already
swelled their investment portfolio to
$9bn apiece.
The expanded firepower enabled one
of the pair to make the distinctly un-
Buffettlike investment in Apple, and has
helped Berkshire widen its investment
activities into industries, including
technology, where Mr Buffett is uncom-
fortable.
“They certainly have a more exten-
sive knowledge of certain industries and
‘He has built a broader
brain trust than he ever
had before’
Larry Cunningham
Warren Buffett has handed more power to Ted Weschler and Todd Combs as Berkshire has looked to new industries — Daniel Acker/Bloomberg
activities in business that have devel-
oped in the last 10 or 15 years,” Mr Buf-
fett said at Berkshire’s annual meeting
last month.
Mr Combs and Mr Weschler have also Profiles
allowed Mr Buffett to realise a long-held
ambition to dismiss many of the exter-
nal fund managers who ran Berkshire
subsidiary company pension funds and Talents
manage the funds in-house.
The result is that several Berkshire
who
funds have a strikingly different invest- attracted
ment profile to typical corporate pen- attention
sion funds. Instead of a diversified port-
folio of bonds and equities, Mr Combs
and Mr Weschler are invested in a small
number of stocks. “One has seven or
eight positions and the other one has
maybe 13 or 14,” Mr Buffett said,
although he has declined to say whose
investments are whose.
At Berkshire’s railways subsidiary,
BNSF, 90 per cent of the $2.06bn fund is
now invested in equities, and its most
recent annual report revealed that just
three stocks account for 47 per cent of
the fund’s assets.
Ted Weschler
He was running a hedge fund from an
office above a bookshop in
Charlottesville, Virginia, in 2010 when he
bid in a charity auction for lunch with
Warren Buffett. He won with a $2.6m bid
and did the same again a year later. At
the end of that second dinner, Mr Buffett
offered him a job. Within months, Mr
Weschler, left (top), had wound up his
fund and was entrusted with a portion of
Berkshire’s cash to invest. He has also
aided Mr Buffett in doing some deals.
Todd Combs
Like Mr Buffett, Mr Combs is an alumnus
of Columbia Business School and a value
investor, and he attracted Berkshire’s
attention with impressive returns at his
$400m hedge fund, Castle Point. He shut
the Greenwich, Connecticut-based fund
in 2010 to join Mr Buffett in Omaha, and
has been handed a growing portion of
Berkshire’s investment portfolio to
manage.
Lubrizol’s $585m pension fund was 92
per cent invested in equities at the end
of 2014, up from 66 per cent three years
earlier, according to their most recent
regulatory filings. FlightSafety’s $377m
fund was 88 per cent in stocks, up from
39 per cent at the end of 2011.
Berkshire’s $32.7bn acquisition of
Precision Castparts — a company in
which Mr Combs had earlier bought a
small stake — closed in January and its
pension fund is expected to follow a sim-
ilar model, although the transition
requires approval and could take sev-
eral years.
Mr Buffett has long argued that equi-
ties will outperform over the long run,
even if they are sure to be more volatile,
and Berkshire could use its $58bn cash
pile to top up the funds if equity markets
fall or his protégés’ bets turn sour. Mr
Buffett declined to comment.
The delegation of authority to Mr
Combs and Mr Weschler partly reflects
how Berkshire’s investment portfolio
has become less central to the company,
and to Mr Buffett’s role as chief execu-
tive. About two-thirds of the company’s
$342bn market value resides in its oper-
ating companies, which include some of
the largest rail infrastructure, insurance
companies and utilities in the US, and a
key part of Mr Buffett’s job is allocating
capital investment between them.
“He has built a broader brain trust
than he ever had before,” said George
Washington University professor Larry
Cunningham, author of Berkshire
Beyond Buffett.
“Berkshire is in rail, energy, home-
building and industrial companies
because Mr Buffett found people that he
could trust to run those.”
Mr Buffett has said that his job will be
split after his retirement with a new
chief executive, who observers believe
will come from the operating compa-
nies, and a separate person, or people,
overseeing the investment portfolio.
See Markets
ment of Lower Saxony. Together, these hold nearly 90 per
cent of the voting rights. There is only one outside board
member: the chief executive of Swedish bank SEB, which
advises Scania, VW’s truck brand.
Not only do these shareholders have a stranglehold
on half the board, but one — Lower Saxony with 20 per
cent of the voting rights — also has a blocking minority
normally reserved for investors with at least 25 per cent.
It is not clear that the state government even acts like
a shareholder. Given one of its priorities is to protect jobs,
it sides more naturally with the 10 employee and trade
union representatives who make up the other half of
the board.
Here, too, it is unclear that board members focus on the
correct priorities. For the employee and union representa-
tives, protecting German jobs seems to be top of the list.
The head of the IG Metall union has long held a seat, and
even served as interim chairman when the diesel scandal
first broke. One of the consequences of this supervisory
board structure is that job losses in Germany are taboo.
VW produces about the same number of cars as Toyota,
but with double the staff.
Yet VW’s corporate governance arrangements — despite
scandal after scandal — seem impervious to change. In
2005, after executives hired
prostitutes and bought
Viagra for staff representa-
This lack of
tives, the management tried international
to reform the system, with-
out success. Norway’s sover-
voices on boards
eign wealth fund — the larg- is not unique to
est shareholder not on the
board — has turned to the
VW or Germany
courts after unsuccessfully
raising concerns since 2008.
Corporate governance experts disagree over whether
the supervisory board system makes it innately difficult to
protect minority shareholder interests. All argue that — ex
VW — Deutschland AG has made huge strides in the past
decade away from the cosy culture of “friends of the boss”
holding numerous board seats at multiple companies.
Supervisory boards, they say, are more transparent, more
accountable and more accessible to all shareholders.
Nevertheless, in countries such as Italy, minority share-
holders have board appointment rights, while in Russia
they build up voting power together. This is not to argue
that either country is a shining beacon of corporate gov-
ernance best practice. But enshrining stronger protection
tools for minorities in Germany’s governance code could
go some way to forcing change at VW — and elsewhere.
There are other lessons. Apart from the two Qatari
members and a Swedish trade unionist, non-German-
speaking voices are conspicuous by their absence from
VW’s board. Worker board members represent only Ger-
man employees. VW has significant operations — and
challenges — in China and the US, to name but two of its
international markets. But an outside perspective on its
performance and prospects there must be rarely aired.
This lack of international voices on the board is not
unique to VW — or to Germany. In 2014, Egon Zehnder’s
research into 350 large listed European companies found
that more than two-thirds of Italian boards, a quarter of
Spain’s, and 14 per cent of Norway’s and Sweden’s had no
non-nationals. On this comparison, Germany actually
comes out rather well: a fifth of its large listed companies
have non-nationals on the supervisory board.
Attracting non-German speakers to eight board meet-
ings and an annual meeting every year may be a challenge.
But it is one that would be more than outweighed — not
just at VW — by the benefit of a genuinely outside view.
sarah.gordon@ft.com

Banks Technology

Europe lenders press US for delay on living wills Tencent revenues rise 43% as ad growth slows
LAURA NOONAN — NEW YORK
European banks are lobbying US regu-
lators to extend a July 1 deadline to sub-
mit the next versions of their “living
wills” that are designed to show how
they could be wound up without spark-
ing a crisis or bailout.
The eight biggest US banks have already
been given until July 2017 to file their
next plans, though five banks whose
2015 submissions were rejected by regu-
lators must file amendments by Octo-
ber or face sanctions.
The resolution plans — more com-
monly known as living wills — were
introduced to prevent the chaos and
publicly-funded bailouts that imper-
illed the US economy after Lehman
Brothers’ 2008 collapse.
The 12 largest, most complex, global
banks supervised by the US authorities
must typically file the plans annually, in
July. The eight large US banks were noti-
fied of their 2015 results on April 13.
But UBS, Deutsche Bank, Credit
Suisse and Barclays — the only foreign
banks required to file living wills — are
yet to receive their 2015 test results.
Three people familiar with the situa-
tion said the European banks were
pushing the Federal Reserve for an
extension, and for clarity on when they
would receive their 2015 results.
European bankers say they need the
2015 results before they submit 2016
plans so that they can take regulators’
feedback into account.
“It’s not something you can pull
together in a week,” said one person,
pointing out that the documents ran to
several hundred pages.
The large European banks are also
facing other regulatory headaches in the
US, as they race to establish the new
“international holding companies” that
will ringfence their US businesses from
July 1.
Banks have complained that the new
holding companies — which are only
mandated for banks with more than
$50bn in US assets — will increase the
cost of doing business in the US, since
they will need to hold more capital
there.
The four European banks declined to
comment. The Fed and the Federal
Deposit Insurance Corporation (FDIC),
which jointly run the tests, declined to
comment.
HUDSON LOCKETT — HONG KONG
CHARLES CLOVER — BEIJING
Tencent has warned that a slowdown
in China’s economy could hit online
advertising revenues as the internet
group beat expectations in the first
quarter on the back of further moneti-
sation of its highly popular WeChat
messaging app.
Martin Lau, group president, said on a
call with analysts that macro-economic
conditions, rather than specific con-
cerns related to Tencent, were to blame
for slower growth of online advertising.
Brands were “keeping more of the
budget for the year until they see a
clearer picture around the macroeco-
nomics”, he said. “This is the general
feeling we’re getting.”
Year-on-year growth in online adver-
tising was 73 per cent in the three
months to the end of March, but this
represented a deceleration from the
fourth quarter of last year when
the increase was 118 per cent.
China’s economic slowdown was the
cause, the company said.
“While we are optimistic about the
long-term growth potential of our
online advertising business, our brand
advertising business could face near-
term challenges due to the uncertainties
of the macroeconomic environment,”
said Tencent.
Revenues at the internet group rose
43 per cent to Rmb31.995bn ($4.9bn) in
the quarter, while profits after tax
were up 33 per cent year on year
to Rmb9.2bn.
Sales and marketing costs, mean-
while, had nearly doubled.
Tencent makes most of its money
from gaming and social media, but has
expanded aggressively into such areas
as online payment platforms, ride-hail-
ing and banking.
During the past year the company has
made a concerted push to extend the
services available on WeChat, which is
the dominant social network on the
mainland with more than 762m users.
Online ad revenue on the site grew
73 per cent year on year to Rmb4.7bn,
accounting for 15 per cent of total
revenues.
“We will continue growing and mone-
tising advertising inventories on our
media and social platforms,” said
Tencent .
Thursday 19 May 2016 ★ FINANCIAL TIMES 15

COMPANIES

Eon and RWE push ahead with shake-up plans

Utilities have little choice but to overhaul their operations as Germany’s switch to renewable energy takes heavy toll
GUY CHAZAN — BERLIN
Michael Lewis always has strong emo-
tions driving past Ratcliffe-on-Soar, a
48-year-old coal-fired power station in
middle England whose massive chim-
ney and cooling towers dominate the
landscape.
It was the first plant he ever visited
when he started out in the energy indus-
try more than 20 years ago, and he
retains a soft spot for it. “When you see
it, you have a certain pride that you’re
keeping the lights on,” he says.
But Ratcliffe is no longer part of his
world. Mr Lewis’s company Eon, Ger-
many’s biggest utility, has dispensed
with all of its coal- and gas-fired power
stations, hiving them off into a new
entity called Uniper at the start of 2016.
It is the most radical corporate restruc-
turing Germany has seen in decades.
Mr Lewis, head of renewables at Eon,
is sad to see Ratcliffe go, but recognises
Europe can only combat climate change
if it reduces carbon dioxide pollution
from traditional power stations. “We
have to make this transition,” he says.
“CO2 emissions have gone from a mar-
ginal to a mainstream issue and the
world has to get to grips with it.”
Eon is not alone in finalising an over-
haul this year. Rival RWE has embarked
on an equally drastic restructuring, as
both companies respond to a crisis in
the German power industry that many
have described as existential.
The trigger was the Energiewende,
Germany’s decisive shift away from fos-
sil fuels and nuclear power, towards
renewables. The change has shaken up
the industry in ways no one saw coming.
“What happened went beyond my
worst case [scenario],” says Johannes
Teyssen, chief executive of Eon.
Germany has become an incubator
for changes that are now taking hold
across the industrialised world, and
which will accelerate as a result of a cli-
mate change accord finalised in Paris in
December. The agreement is designed
to stop global temperatures rising more
than 2C from pre-industrial times and,
if implemented, will force power com-
panies to entirely rethink their models.
“Germany is at the forefront, but you
can see these changes on a global scale,”
says Hans Bünting, head of renewables
at RWE. “Last year, 50 per cent of the
generation capacity built worldwide
was renewables.”
Against this backdrop, conventional
coal- and gas-based power, once the
mainstay of the global electricity gener-
ation industry, will gradually diminish.
But this shift has been disastrous for
Eon and RWE. The power they generate
from coal and gas has been squeezed out
of the market by heavily subsidised
wind and solar power.
Meanwhile, the massive build out of
renewable capacity, combined with
sluggish demand and a slump in the
value of crude oil and gas, has triggered
a collapse in the price of wholesale elec-
tricity — from €60 per megawatt-hour
in 2011 to around €25 now.
Both RWE and Eon have taken mas-
sive writedowns on their coal- and gas-
fired power stations, which barely break
even at such prices. Germany’s utilities
have also had to deal with the country’s
Powering down
Low energy prices are hurting German utilities
Share prices and index (€)
* One-year forward (€ per megawatt-hour)
2011 12 13
Sources: Bloomberg; companies FT graphic Photo: Bloomberg
New rules When describing the break-up of his
company, Johannes Teyssen, the Eon
Regulators
chief executive, says that he wants to give
present
investors
investors “optionality”.
Those who predict that electricity
with a prices and the value of commodities such
choice as coal, gas and carbon will recover can
invest in Uniper, he says.
And those who prefer to own a
regulated business with “resilient income
streams, irrespective of the volatility of
commodities” can opt for Eon.
“We will not grow endlessly — it’s not
like in the commodities business,” adds Mr
Teyssen, referring to the new Eon.
“But we will have resilience and
predictability. Our capabilities will decide
things — not fortune and the markets.”
His logic is compelling. Shares in
German wholesale
electricity price*
14 15
European energy companies with
heavily regulated businesses, such as
Terna, which operates Italy’s grid, and
Snam, which runs its gas pipelines, have
performed much better since the
financial crisis than integrated utilities
such as Eon.
Their returns are capped by
regulators, but they can offer a degree
of certainty that companies such as
Eon cannot. “They are much more
attractive stocks in a low-yield world,”
says Roland Vetter, head of research at
CF Partners, a risk management and
energy trading group.
Other utilities, such as Iberdrola of
Spain, are following a similar path.
Regulated businesses account for
three-quarters of its core profit, and
RWE
Ebitda, 2015 (%)
60 Other
Group will form a
new ringfenced
subsidiary with a
separate listing
50
40 Eon
Fuel generation net capacity, 2015 (%)
Other
Offshore wind
30
Onshore
wind
20 Type
Total ebitda €5.8bn
Uniper**
Fuel generation net
capacity, 2015 (%)
Other
10
Gas
Hard coal
Nuclear
0 Hydro
Type
16 Total ebitda €1.7bn
** Eon’s spun-off conventional energy units
that share could grow as it steps up
its investments in networks and
renewables.
Engie, the French utility, plans to
invest €22bn in renewables, energy
services and decentralised technology.
The changes are inevitable,
according to Hans Bünting, head of
renewables at RWE, the German
electricity utility.
Political interventions have played
havoc with energy markets in the past
few years. In response utilities would
“rather concentrate on those markets
where the government already
intervenes but in a more predictable
manner”, says Mr Bünting.
“And those are in our view the
regulated markets.” Guy Chazan
decision following the 2011 Fukushima
Daiichi disaster in Japan to abandon
nuclear power.
All of this has hammered their valua-
tions. Eon’s share price has fallen 64 per
100 cent since Fukushima, and RWE’s by
three-quarters. Eon slumped to a record
Supply loss of €7bn last year, while RWE was
80 forced to scrap its dividend.
Eon announced its big break-up in
Grids 2014, hoping to get ahead of the crisis.
60
Uniper would keep the dirty plants and
energy trading while Eon retained the
40 cleaner, greener businesses: renewa-
Renewables bles, energy distribution and customer
solutions. The plan is for Eon to list
20 53 per cent of the new company in the
Conventional
power second half of the year, pending share-
0 holder approval at a meeting on June 8.
Total €7.2bn But the external environment has
deteriorated markedly since Eon
unveiled the split. It had intended to
transfer all its nuclear reactors into Uni-
per, but the government, worried Eon
was trying to dodge its share of the cost
100
of Germany’s atomic clean-up, forced it
to keep them.
80 Guido Hoymann, an analyst at Met-
Europe zler Capital Markets, says: “It means
60 that both Eon and Uniper have busi-
nesses with negative momentum, which
will burden their valuations.
40 “It makes you wonder whether it was
worth doing the split in the first place.”
US 20 Many question Uniper’s viability, con-
sidering the continuing fall in power
prices since the restructuring plan. Crit-
0 ics say Eon has simply created the
Geography energy equivalent of a “bad bank”.
“The economic starting point of the
two new companies is less fortunate
than we thought,” says Mr Teyssen. “But
there’s no better answer than to still
move ahead.”
100
RWE took a different approach.
Instead of carving out the older assets it
Russia 80
split off the more attractive ones — its
Other Europe renewables, grid and retail operations —
60 into a new subsidiary, which will take a
Sweden stock market listing by the end of 2016.
40 RWE will initially sell 10 per cent of
UK
the subsidiary’s shares, and dispose of
20 more stock later. The resulting break is
much more clear-cut than Eon’s.
Germany But for RWE, too, the conditions have
0 worsened. In April, a government-
Geography appointed commission ruled that Ger-
many’s four nuclear generators should
pay €23.3bn to cover the cost of storing
the country’s atomic waste.
‘Germany is RWE vowed to fight the proposal, but
most analysts say it will probably be
at the adopted as law. That would mean more
forefront, but
debt for RWE, already labouring under
you can see the low power price and high exposure
to coal and lignite — a dirty fuel that has
these changes an uncertain future in Germany. Those
on a global factors prompted Moody’s to down-
scale. Last grade RWE’s credit rating last week.
Thomas Deser of Union Investment, a
year, 50 per shareholder in both Eon and RWE, says
cent of the the companies’ main problem is that
generation they do not have the political support
from the state enjoyed by European
capacity built rivals such as France’s EDF and Engie.
worldwide “At the moment there is a lot of uncer-
was tainty about their ability to pay a decent
renewables’ dividend in the future,” he adds. “A lot of
that has to be clarified before you can
Hans Bünting compare Eon and RWE to their Euro-
pean peers.”

Contracts & Tenders

Oil & gas

Statoil and rival explorers snap up

licences to drill off Norwegian coast
KIRAN STACEY
ENERGY CORRESPONDENT
Chevron, ConocoPhillips and Statoil
have all secured licences to drill for oil
off the coast of Norway, as companies
target new resources to make up for
losses elsewhere.
Some of the world’s biggest oil compa-
nies bid for rights in the country’s 23rd
licensing round, which allocated areas
in the Barents Sea, closer to the Arctic
than before. Some are also in an area
previously disputed with Russia.
Yesterday, the Norwegian govern-
ment announced it had granted 10
licences to a range of companies, with
domestic producers being the biggest
winners.
State-backed Statoil will become the
operator of four of the licences, while
Lundin, the Norwegian company that
discovered the Johan Sverdrup field in
2010, will take charge of three.
Other groups to win a stake in one
or more fields include US oil companies
Chevron and ConocoPhillips, as
well as Centrica, the UK utility which is
selling many of its oil and gas assets
elsewhere.
Other multinational companies fared
less well. Both BP, the international oil
company, and Eon bid for licences but
were not granted any licences.
Tord Lien, Norway’s energy minister,
said: “The Barents Sea offers great new
opportunities. The industry’s interest in
new acreage shows that the Norwegian
continental shelf remains attractive.
“The potential is huge. If the
companies are successful in their explo-
ration, northern Norway will enter a
new era.”
The results show that large oil compa-
nies are still interested in exploring in
State-backed Statoil won four of the
10 Barents Sea licences on offer
new areas, despite the collapse in the
oil price since 2014. Oil hit a low earlier
this year of $28 a barrel, down from $115
two years ago. But in recent months
prices have recovered slightly, with a
barrel of Brent crude now trading
around $50.
The North Sea is one of the
oldest oil basins in the world, with oil
output from Norway having fallen by
half since 2000. But in recent years
there have been more discoveries in the
Norwegian part of the sea — including
Johan Sverdrup — than in the British
portion.
The latest push for exploration rights
suggests that even though many compa-
nies have had to make heavy write-
downs on their existing assets, they are
still looking for new sources of revenue.
Victoria McCulloch, an analyst at RBC
Capital Markets, said: “The big prizes in
Norwegian oil are still in the Barents Sea
— it is very under-explored.
Environmental campaigners point
out that Norway was one of five Nordic
countries that agreed with the US to re-
evaluate its drilling in the Arctic.
Truls Gulowsen, head of Greenpeace
Norway, said: “New exploration licenses
in the Barents Sea are in no way sustain-
able, either for the marine environment
or the climate. Parliament should stop
these licenses.”
16 ★ FINANCIAL TIMES Thursday 19 May 2016

COMPANIES

Food & beverage

Weaker emerging markets weigh on SABMiller

Brewer warns of more
forex volatility in year
ahead after profits hit
SCHEHERAZADE DANESHKHU
CONSUMER INDUSTRIES EDITOR
SABMiller felt the full force of weaken-
ing emerging markets currencies as it
reported a 16 per cent fall in full year
pre-tax profits and warned of more for-
eign exchange volatility in the year
ahead.
The world’s second-largest brewer,
which is set to be taken over by
Anheuser-Busch InBev after a $71bn
offer, booked $721m of exceptional
charges, including $160m of costs relat-
ing to the deal. As well as fees to advis-
ers, these costs include paying incen-
tives to some senior staff to remain until
the deal closes.
The bulk of the charges — $572m —
was incurred in scaling down, by about
half, its operations in Angola and shut-
ting production in war-torn South
Sudan. Both countries have suffered a
sharp devaluation of their currencies,
making hard currency scarce and busi-
ness hard to conduct, said SABMiller.
Reporting SAB’s final set of annual
results as an independent company,
Alan Clark, chief executive, said: “These
are good results and the second half was
even stronger than the first, which is
remarkable when you consider the dis-
traction of the AB InBev offer.
“The mood is determined as ever. We
have performed well across the board
and reversed declining growth in Aus-
tralia and Europe. It’s really good to be
going out on a high.”
The brewer behind brands such as
Castle lager, Peroni and Snow beer in
China, makes 70 per cent of its sales to
emerging markets — a key attraction for
Americas-focused AB InBev.
The fall in a host of currencies, includ-
ing the Colombian peso, South African
rand and Turkish lira against the US
dollar wiped $3bn off revenues of $24bn
in the year to the end of March and $1bn
off earnings before interest, taxation
and amortisation of $5.8bn.
Pre-tax profits of $4.1bn were 16 per
cent lower than the previous year. Reve-
nues rose by 7 per cent and ebita by 8 per
cent on an organic basis — excluding the
currency effects — and profit margins
also rose. The ebita margin increased by
0.6 percentage points to 24.1 per cent,
helped by the group’s cost-cutting pro-
gramme. This was ahead of schedule,
said SAB, with savings of $547m and the
group was on track to achieve $1.1bn of
savings by 2020.
Mr Clark said neither SAB nor AB
InBev expected the deal to close before
August 12, the date on which the final
dividend — up 8 per cent to 93.75 cents a
share — is to be paid.
AB InBev would have been able to
save the $1.5bn final dividend payout if
it had managed to close the takeover
before that date. The Belgian brewer —
whose cash offer is set at £44 a share —
has promised asset sales in the US,
China and Europe but has yet to obtain
clearance from regulators.
The deadline for the first phase of a
European Commission investigation
into the deal is next Tuesday and AB
InBev hopes to have headed off a second
phase with the offer to sell SAB’s central
and eastern European breweries.
Andrew Holland, analyst at Société
Générale, said: “AB InBev will be
encouraged by the strong organic sales
growth in Africa and LatAm — the main
regions that AB InBev will retain.”
Anthony Bucalo, analyst at HSBC,
said AB InBev needed the deal more
than ever to boost growth, after report-
ing a slowdown in quarterly Brazilian
and US beer sales. “AB InBev’s first-
quarter results were unimpressive,” he
said. “But we believe that on comple-
tion, AB InBev’s operators will inherit
highly-attractive assets and we expect
good execution with SAB’s South Ameri-
can, Australian and Africa assets.”

Travel & leisure. Gambling Banks

Macau’s casinos wait for wheel of fortune to turn
Gaming groups are struggling
to replace lost revenues as
Chinese players stay away
BEN BLAND — MACAU
Casino executives in Macau are
preparing for tougher competition and
heightened credit risk even as some say
that the slump in revenues is “bottom-
ing out”.
After years of rapid growth in the
world’s biggest gambling centre, reve-
nues started to fall sharply in 2014 as
Macau felt a double blow from the eco-
nomic slowdown in China and President
Xi Jinping’s crackdown on corruption.
Gross gaming revenue in Macau fell
10 per cent in April to $2.2bn, compared
with the same period a year earlier, the
24th consecutive month in which the
casino takings have shrunk.
But executives at an annual industry
event in the former Portuguese colony,
the only part of China where casinos are
legal, say the slide is easing.
“If it hasn’t bottomed out, we’re defi-
nitely near the bottom,” says Allan
Zeman, vice-chairman of Wynn Macau,
which is controlled by US gambling
‘The big debate is whether
the new casino properties
bring in more people or
just lead to cannibalisation’
tycoon Steven Wynn and is one of the six
biggest Hong Kong-listed casino opera-
tors in Macau. The others are Sheldon
Adelson’s Sands China, Galaxy Enter-
tainment Group, SJM, MGM China and
Melco Crown Entertainment.
Total earnings at these companies fell
by 7 per cent year on year in the first
quarter of this year to $1.4bn, before
interest, tax, depreciation and amorti-
sation. Gross revenue fell 12 per cent
year on year to $7.7bn in the same
period, according to Morgan Stanley,
the investment bank.
Mr Zeman says that the previous
years of rapid growth were “not sustain-
able”, particularly because of the casi-
nos’ reliance on Chinese high rollers
brought in by middlemen known as
junkets.
The junkets extend credit in Macau to
Chinese gamblers who are prevented by
capital controls from taking large
amounts of cash out of the mainland.
But these gambling debts are not legally
Casinos in the enforceable in mainland China, leaving
former the junkets operating in a grey zone.
Portuguese Mr Zeman says that the industry is
colony of Macau becoming “much safer and much
have been hit by sounder” as the junkets have been
China’s squeezed by the crackdown on graft
slowdown and and closer oversight by Macau’s casino
anti-corruption regulator.
drive — Aaron However, he warns that competition
Tam/AFP/Getty Images
between companies is becoming tighter
with gambling revenues still falling and
several multibillion-dollar casino
resorts scheduled to open this year.
Mr Zeman says that the current diffi-
culties will “separate the men from the
boys” as casino operators try to increase
their non-gambling income by adding
theme-park rides, theatrical shows and
upscale hotels and restaurants.
Vitaly Umansky, a casino analyst at
Sanford Bernstein, agrees that “the
worst is behind Macau”.
He says that while the junket-
supported business is still under
pressure, the growth of mass-market
gambling will lead to a stabilisation in
overall gaming revenues.
“The big debate is whether the new
casino properties bring in more people
or just lead to a cannibalisation,” adds
Mr Umansky.
Praveen Choudhary, an analyst at
Morgan Stanley, is among the sceptics,
warning in a recent research note that
the “slow ramp-up” at two casino
resorts that opened last year bodes ill for
the three large properties that will come
on to the market this year.
Jim Dennedy, chief executive of Agil-
ysys, a US company that provides com-
puter software to casinos and hotels,
says that operators will struggle to
replace the revenue lost from the big-
betting “whales” because non-gambling
activities account for less than 7 per cent
of casino groups’ revenues in Macau.
That is in stark contrast to Las Vegas,
where the majority of revenues are now
generated from non-gambling activi-
ties, which range from conferences to
concerts. Another consequence of the
slowdown and the pressure on the
junkets is the heightened risk of bad
debts for the casinos that serve those
Chinese high rollers who have not been
scared away by Mr Xi’s campaign
against graft.
Several dozen junket companies have
folded because of financial problems
since the slump began. Last year, the
Macau casino watchdog refused to
renew operating licences for 35 of the
remaining 183 junkets after they
breached regulations.
24 “We need to be more stringent
Consecutive
and diligent in extending credit to
months in which individuals or junkets,” says Shen Yan,
Macau’s casino an executive at Imperial Pacific, a
takings have shrunk Hong Kong-listed group that sold its
Macau junket business last year but
7% operates a casino on the Pacific island
of Saipan that targets wealthy Chinese
Share of operators’
revenues derived gamblers. “There’s an increased risk
from non-gambling from a credit perspective for junkets
activities and casinos.”
Shipping
loans threaten
full-year loss
at NordLB
JAMES SHOTTER — FRANKFURT
NordLB, the Landesbank, has warned
on profits after setting aside an extra
€435m to cover potential losses on
shipping loans — in the latest sign of
slowing activity on global trade routes.
The north German bank said yesterday
that as a result of its hefty provisions it
had made an €84m net loss in the first
three months of 2016, down from a
€156m net profit in the same period
a year earlier.
Global shipping has suffered a sharp
downturn as a slowdown in Chinese
trade has coincided with ill-timed
investments in big container vessels,
compounding the after-effects of the
financial crisis.
Both ship operators and the banks
that lend to them have been feeling the
effect of this overcapacity on their
finances. NordLB’s peers, including
Commerzbank, Germany’s second-larg-
est lender, and HSH Nordbank, another
north German Landesbank, have taken
big writedowns on their shipping loan
portfolios.
Gunter Dunkel, chief executive, said
NordLB’s other businesses had per-
formed well, but the pain in the shipping
market would drag down performance
this year, raising the prospect of a first
annual net loss since 2009.
“We don’t expect an improvement in
the coming quarters in the situation
on the shipping markets,” he said. “As a
result, we expect significantly rising risk
provisions. On top of this we will con-
tinue to reduce our shipping finance
portfolio, even though this will put fur-
ther pressure on our results.”
He warned that “against this difficult
market background” NordLB was
expected to “finish the year with a nega-
tive result”.
But Mr Dunkel said the lender, having
boosted its financial buffers in recent
years and increased its core tier one cap-
ital ratio to 12.6 per cent by the end of
March, could cope with “a weak or even
a negative result” this year.
“At the same time we are working
intensely on developing the bank’s
strategy further.”
NordLB had said in April it intended
to offload €7bn of its €19bn maritime
loan portfolio to investors, such as pri-
vate equity firms, within five years, to
cut its exposure to the industry.

Contracts & Tenders Technology

Thailand forces Uber motorbike service off road

MICHAEL PEEL — BANGKOK
Thailand has forced motorcycle ride-
hailing operators including Uber off
the road, in the latest blow to the Cali-
fornia-based company’s efforts to
expand in Asia.
The transport ministry has suspended
the fledging app-based Bangkok bike
businesses of Uber and its regional rival
GrabTaxi, amid claims of rule violations
and conflicts with existing registered
riders.
The decision comes a few months
after Uber launched its two-wheeler
operation in Thailand with some fan-
fare, in an attempt to combat increas-
ingly co-ordinated opposition to its
Asian growth from well-funded compet-
itors.
Thailand’s transport ministry, police
and the country’s ruling military have
ordered the app-based motorbike taxi
operators to stop their services in the
country, a joint statement posted on the
ministry’s website on Tuesday said.
Thai officials had spoken with the
companies about regulations and would
step up enforcement of the rules, the
statement added. “Officials will be
beefed up all over Bangkok to arrest vio-
lators,” said Nunthapong Cherdchoo, a
senior transport ministry official.
The international companies also
appear to have run into opposition from
parts of Bangkok’s highly organised net-
work of licensed motorbike taxis.
Drivers in distinctive numbered
orange jackets have designated home
stations around the city and are mostly
careful not to tread on each other’s turf.
Grab, which is based in Singapore and
launched its Bangkok motorbike serv-
ices last year, said that it was consider-
ing its response to the government
order.
It said that its operation had helped
make the Thai capital’s notoriously con-
gested roads more navigable and less
hazardous, thanks to measures such as
the provision of helmets and accident
insurance.
Uber did not immediately respond to
a request for comment. It held a high-
profile launch of its Bangkok venture in
February, declaring its aim to provide
“safe, affordable, reliable transporta-
tion at the push of a button, everywhere
for everyone”.
The Thai government edict comes as
‘Officials will be beefed
up all over Bangkok to
arrest violators’
Nunthapong Cherdchoo
Uber grapples with commercial resist-
ance to its Asian expansion from an alli-
ance of rivals including GrabTaxi,
China’s Didi Kuaidi and Ola of India.
Southeast Asian countries such as
Thailand are increasingly important for
Uber because of its struggles in China,
where it has invested heavily but is
struggling to gain ground on Didi
Kuaidi.
Travis Kalanick, Uber’s founder, said
in February that the company lost more
than $1bn in China last year and that the
key now was whether it could “contain
the irrational long enough to get to the
point where the world does get
rational”.
The Thai motorbike move was Uber’s
latest attempt to find ways of delivering
new non four-wheeled services to suit
budget-conscious Asian consumers.
The group first accepted cash for rides
in India. It also launched — with mixed
results — a pilot autorickshaw three-
wheeler service in Delhi that ended late
last year.
Additional reporting by Panvadee Uraisin
Thursday 19 May 2016 ★ FINANCIAL TIMES 17

COMPANIES

Automobiles. Fuel economy Travel & leisure

Nike eyes goal

Japan testing scandal picks up speed
Crisis at Mitsubishi deepens as
Suzuki becomes latest group
to admit using flawed methods
KANA INAGAKI — TOKYO
The president of Mitsubishi Motors has
said he will step down in the wake of a
damaging fuel economy scandal that
has embroiled its rival Suzuki Motor.
Suzuki, Japan’s fourth-largest car-
maker, came under fresh regulatory
scrutiny after an internal probe found
that its testing methods had not com-
plied with domestic standards since
2010. All 16 models sold in its home
market were affected, it said, and more
than 2.1m vehicles in total.
“We apologise deeply for failing to use
the designated measuring method,” said
Osamu Suzuki, the 86-year-old chief
executive, at a news conference.
But the producer of small cars did not
see a need to revise its fuel economy fig-
ures because the performance of its
vehicles was little different — less than 5
per cent — when using the proper test-
ing method.
Suzuki’s problems, which sent its
stock down 9.4 per cent, came to light
after the Japanese transport ministry
ordered carmakers to review fuel econ-
omy data and testing methods.
Last month Mitsubishi said some of
its employees had overstated fuel effi-
ciency by up to 15 per cent on four types
of small, petrol-powered car sold in
Japan, including two built for Nissan.
Mitsubishi, Japan’s sixth-largest car-
maker, has since admitted that it has
since 1991 used testing methods that are
not compliant with Japanese standards.
Yesterday it said economy-related
data on two more models, including the
RVR and Pajero sport utility vehicles,
had been mis-stated.
Data for three other models, including
the Outlander plug-in hybrid, had been
based on desktop calculations rather
than figures collected from tests, as is
required by Japanese law.
Fuel economy was about 3 per cent
different using a proper testing method
for these vehicles, according to a report
submitted to regulators.
Yesterday Tetsuro Aikawa, Mitsubi-
shi’s president, said he would step down
on June 24 to clear the way for the com-
pany’s turnround under Nissan, which
last week agreed to inject $2.2bn in
return for a 34 per cent stake. “If I stay
on as president, I will be in the way of
the revamp,” he said.
Executives had not instructed
employees to inflate the fuel economy
data, Mr Aikawa reiterated. But man-
agement had failed, by not recognising
and fixing the misconduct for such a
long period.
Mitsubishi’s has said fierce competi-
tion in Japan’s mini-car market put pres-
sure on employees to meet fuel effi-
ciency targets.
Osamu Masuko, chief executive, said
he would stay on until a new manage-
ment team was formed but would not be
paid during the transition. Nissan is
expected to nominate a chairman and a
third of the board.
The scandal has gripped the industry
as it exposes loopholes that have been
overlooked for decades. Japanese test-
ing methods had already come under
fire from consumers for the large differ-
ence — 30 per cent on average —
between economy figures in advertise-
ments and those achieved on the road.
Suzuki said it had measured the
resistance a car faces from tyres and air
to calculate economy inside a building
rather than on its windy testing course,
which is on top of a hill near the ocean.
Executives said they believed
employees had not intended to make
the figures look better, but had broken
the law because it was easier to collect
consistent data indoors.
Suzuki, which has a strong presence
in India where its Maruti Suzuki affiliate
controls nearly half the market, said it
had not found any data fabrication and
Data headwinds: Suzuki workers
are said to have measured a car’s
resistance in an indoor facility
rather than on a windy testing
course — Ralph Orlowski/Reuters
would continue to sell affected vehicles.
No overseas models were affected at
either Mitsubishi or Suzuki.
The problems at the two carmakers
differ in scope, but analysts said both
cases highlighted the need for an out-
side organisation to check whether fig-
ures provided to regulators are correct.
“If Mitsubishi’s problem had not
emerged, no one may have come for-
ward that they were not complying with
Japanese law,” said Yoshihiro Okumura,
general manager at Chibagin Asset
Management. “Unless there is an out-
side checking mechanism this problem
can last for ever.”
of £600m
kit deal with
Chelsea FC
ARASH MASSOUDI, JOSH NOBLE
AND LINDSAY WHIPP
Nike is closing in on a potential kit deal
with Chelsea Football Club, which at
£60m a year would be the second most
lucrative in the history of England’s
Premier League.
The US sportswear group outpaced
competition from Under Armour, its
fast-growing smaller rival, after intense
negotiations with the club, according to
a person involved in the talks.
Nike declined to comment when con-
tacted by the Financial Times.
The £600m deal — it is set to run for at
least a decade — underscores the value
Premier League clubs present to global
brands, especially those with a growing
commercial interest in Asia, even if
sales of replica shirts do not match the
size of the investment.
It also marks a change in the way
brands are using their endorsement
money in megadeals, favouring teams
over individuals, according to Matt
Powell, sports industry analyst at NPD,
the research firm.
“A team or a league can’t get
arrested,” he said. “Athletes get hurt,
but teams continue to have a strong
following of fans, so they’ve discovered
[it is a] much more meaningful brand-
ing opportunity.”
Nike, which is based in Oregon, in the
US, recently pulled its sponsorship deal
with tennis star Maria Sharapova, who
admitted testing positive for a banned
substance. A few years ago it dropped
Ray Rice, the American football run-
ning back, amid allegations of domestic
abuse and the cyclist Lance Armstrong
following evidence of his use of per-
formance-enhancing drugs.
Despite a decline in form, Manchester
United will retain the top spot in terms
of Premier League kit deals. It moved
from Nike to Adidas in 2014 in a con-
tract worth £750m over 10 years.
Additional reporting by Aliya Ram

Bank

Deal for Austria’s ‘bad bank’ creditors

RALPH ATKINS — VIENNA
THOMAS HALE — LONDON
Austria has secured a breakthrough
deal with creditors of the “bad bank”
created out of Hypo Alpe Adria —
potentially ending years of wrangling
over one of the most spectacular Euro-
pean collapses of the financial crisis.
In Vienna yesterday Hans Jörg Schell-
ing, finance minister, announced an
outline agreement that could give bond-
holders in Heta Asset Resolution — the
bad bank — as much as 90 per of their
money back.
They deal would avert the possible
bankruptcy of Carinthia, the tiny south-
ern province where the bank was head-
quartered and which had guaranteed it
before it fell victim to the global finan-
cial crisis that followed the collapse of
Lehman Brothers in 2008.
Hypo Alpe Adria had used those guar-
antees — which at their peak were worth
€25bn and are still theoretically worth
€11bn — to expand rapidly into south-
east Europe.
After a forced nationalisation in 2009
Austria pumped billions of euros into
the stricken lender.
Creditors had argued that the guaran-
tees meant they should get all their
money back, especially given the gov-
ernment’s supervisory responsibility.
In March they rejected repayment
proposals put forward by Austria and
Carinthia.
Mr Schelling said he was confident an
improved deal would win the backing of
two-thirds of bondholders, and “draw a
line under the dramatic affair”.
He added that 72 creditors represent-
ing about €5bn in debt had signed a
memorandum of understanding.
Senior bondholders are being offered
a 75 per cent payout on their value of
their holdings — the same as in March.
But they will have the opportunity to
switch their investments into a tradea-
ble 13.5-year zero-coupon bond backed
by the Austrian government, which will
pay out the full amount on maturity.
The earlier deal had envisaged an 18-
year bond on different terms.
Creditors said the value of the renego-
tiated deal was equivalent to receiving
90 per cent of their money back, com-
pared with 82 per cent under the terms
offered in March.
Speaking on behalf of a creditor
group, Friedrich Munsberg, chief execu-
tive of Dexia Kommunalbank, said the
offer had been accepted because the
alternative would have been protracted
legal action.
He told journalists in Vienna the reso-
lution process had already been “long,
costly and painful”.
Heta’s drawn-out resolution high-
lights the legal complications in distrib-
uting losses among bank creditors.
Brussels rules for resolving failed
banks came into force across Europe
this year.
“In the end, every bank is unique and,
under the harmonised regimes we have,
there will still be quite an element of
uniqueness, because the banking sector
is just not harmonised,” said Gerald
Podobnik, head of capital solutions at
Deutsche Bank.

Financial services

Credit Suisse looks to serve Thailand’s rich

BY MICHAEL PEEL — BANGKOK
Credit Suisse is targeting rich Thais in
the latest move by a Swiss bank to tap
Asian markets where private wealth
business is growing faster than in
Europe.
The Zurich-based institution is setting
up a team in Bangkok to win business
from dollar millionaires, including
members of leading business families
with $50m or more in investable assets.
The move highlights how the rush to
serve the new super-rich class in Asia
extends to countries such as Thailand
that do not have a high average income
by world standards.
Francesco de Ferrari, Credit Suisse’s
Asia Pacific head of Private Banking,
said Thailand’s wealthy individuals
were as numerous as in some richer
countries and were looking to expand
beyond their historically domestic
investment focus.
Thailand “has the same amount of
wealth that you would find in Singapore,
Malaysia, South Korea or Taiwan”,
he said. “And clients are looking to
diversify their wealth both in geographi-
cal terms and in different types of
currencies.”
Credit Suisse chief executive Tidjane
Thiam has put Asia at the centre of the
Swiss bank’s strategy, hoping to capital-
ise on the region’s economic growth,
which he believes offers more promise
than the US or Europe despite a recent
slowdown. He has spent substantial
amounts of time in the region since his
appointment last July, visiting China
and Singapore most often but also other
large Asian cities to connect with the
region’s wealthy families.
Credit Suisse is setting up a team of six
client relationship managers in Bang-
Credit Suisse will focus on 340 Thais
with more than $50m each to invest
kok, aiming to double it in size by the
end of the year. It is looking to tap some
of the $456bn of investable assets esti-
mated, in a 2015 report by Capgemini
and RBC Wealth Management, to be
held by Thailand’s richest 91,000
people.
The bank is focusing on 340 individu-
als with more than $50m to invest each,
much of it from multi-generational fam-
ily businesses that in some cases began
as single shops. It hopes to benefit from
the Thai central bank’s relaxation last
year of rules governing citizens’ over-
seas investments and in-country foreign
currency bank deposits.
Other Swiss banks have also singled
Asia out as a priority. UBS has said it will
double its Chinese staff to about 1,200
within five years, while Julius Baer —
Switzerland’s third largest wealth man-
ager — said last month it planned to hire
at least 50 more relationship managers
in Asia.
Private banks expanding in Asia face
potential reputational risks relating to
the murkiness of some client wealth.
Additional reporting by Laura Noonan in
New York
18 FINANCIAL TIMES Thursday 19 May 2016

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.03% -0.05% -1.45% -0.03% -0.529% -1.531% -0.68%

0.20% 0.63% 0.06% 0.82% 1.037% 0.592% 0.72%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Apr 19 - May 18 Index All World Apr 19 - May 18 Index All World Apr 19 - May 18 Index All World Apr 19 - May 18 Index All World Apr 19 - May 18 Index All World Apr 19 - May 18 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,100.80 13,867.28 13,909.34 2,011.36
6,343.75
2,051.29 10,120.31 16,644.69 1,956.73
6,167.77 9,943.23 16,381.22
Day 0.20% Month -1.35% Year -0.72% Day -0.06% Month 1.37% Year -7.94% Day -0.03% Month -2.94% Year -11.51% Day 0.54% Month -0.32% Year NaN% Day -0.05% Month -1.21% Year -15.65% Day -0.58% Month -2.88% Year -7.11%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
4,940.33 45,780.18 45,598.02 1,375.17 21,161.50
2,917.75
4,745.40 1,325.78 8,971.30
8,775.10 19,826.41 2,777.11
Day 0.63% Month -3.85% Year -5.94% Day -0.60% Month 1.31% Year 0.45% Day 0.82% Month -2.20% Year -16.10% Day 0.88% Month -0.86% Year -22.46% Day -1.45% Month -6.99% Year -28.74% Day -0.14% Month -5.02% Year -19.81%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
18,053.60 4,566.48 3,042.82
52,894.08 18,447.98 25,816.36 25,704.61
17,540.92 51,196.80 4,319.30 17,713.62
2,807.51
Day 0.06% Month -1.91% Year -3.93% Day 0.70% Month -3.18% Year -8.88% Day 0.51% Month -3.91% Year -13.51% Day 1.23% Month -3.51% Year -23.64% Day -1.26% Month -8.79% Year -34.84% Day -0.27% Month 0.30% Year -5.93%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 13013.65 13028.43 Cyprus
CSE M&P Gen 67.91 67.71 Italy FTSE Italia All-Share 19410.44 19200.21 Philippines Manila Comp 7534.30 7524.84 Taiwan Weighted Pr 8159.68 8140.48 Cross-Border DJ Global Titans ($) 231.42 230.76
Australia All Ordinaries 5420.50 5458.50 Czech Republic
PX 873.38 882.66 FTSE Italia Mid Cap 31356.49 31252.96 Poland Wig 46539.67 46711.75 Thailand Bangkok SET 1400.50 1406.57 Euro Stoxx 50 (Eur) 2956.02 2938.09
S&P/ASX 200 5356.20 5395.90 OMXC Copenahgen 20
Denmark 962.62 963.40 FTSE MIB 17713.62 17498.88 Portugal PSI 20 4853.95 4850.73 Turkey BIST 100 77277.19 76999.70 Euronext 100 ID 853.50 850.11
S&P/ASX 200 Res 2758.40 2750.70 Egypt
EGX 30 7409.27 7373.00 Japan 2nd Section 4294.92 4336.96 PSI General 2458.52 2453.10 UAE Abu Dhabi General Index 4325.23 4345.31 FTSE 4Good Global ($) 5205.55 5183.72
Austria ATX 2211.36 2201.79 Estonia
OMX Tallinn 978.26 981.21 Nikkei 225 16644.69 16652.80 Romania BET Index 6428.91 6408.02 UK FT 30 2676.70 2667.20 FTSE All World 260.96 261.03
Belgium BEL 20 3353.17 3350.72 Finland
OMX Helsinki General 7670.80 7647.60 S&P Topix 150 1095.03 1092.26 Russia Micex Index 1912.67 1909.00 FTSE 100 6165.80 6167.77 FTSE E300 1325.78 1315.00
BEL Mid 5801.94 5793.71 France
CAC 40 4319.30 4297.57 Topix 1338.38 1335.85 RTX 923.32 931.73 FTSE 4Good UK 5560.42 5555.86 FTSE Eurotop 100 2606.77 2583.97
Brazil Bovespa 51196.80 50839.44 SBF 120 3431.93 3416.30 Jordan Amman SE 2110.96 2102.57 Saudi-Arabia TADAWUL All Share Index 6694.82 6654.20 FTSE All Share 3390.18 3390.29 FTSE Global 100 ($) 1285.23 1282.64
Canada S&P/TSX 60 811.64 Germany
811.23 M-DAX 20117.39 20064.14 Kenya NSE 20 3866.97 3907.09 Singapore FTSE Straits Times 2777.11 2781.11 FTSE techMARK 100 3745.09 3748.58 FTSE Gold Min ($) 1707.69 1683.05
S&P/TSX Comp 13909.34 13917.10 TecDAX 1663.50 1660.44 Kuwait KSX Market Index 5367.28 5348.14 Slovakia SAX 313.30 313.32 USA DJ Composite 6157.90 6148.49 FTSE Latibex Top (Eur) 2546.80 2559.20
S&P/TSX Met & Min 514.09 525.92 XETRA Dax 9943.23 9890.19 Latvia OMX Riga 632.25 634.91 Slovenia SBI TOP 712.63 709.33 DJ Industrial 17540.92 17529.98 FTSE Multinationals ($) 1469.08 1476.31
Chile IGPA Gen 19463.54 19551.23
Greece Athens Gen 628.29 622.71 Lithuania OMX Vilnius 507.27 509.17 South Africa FTSE/JSE All Share 52797.23 52528.84 DJ Transport 7659.43 7607.63 FTSE World ($) 463.25 463.19
China FTSE A200 7887.58 7913.81 FTSE/ASE 20 177.33 174.12 Luxembourg LuxX 1452.98 1450.38 FTSE/JSE Res 20 31937.98 32161.41 DJ Utilities 651.99 654.37 FTSEurofirst 100 (Eur) 3739.98 3705.59
FTSE B35 9278.93 9519.70
Hong Kong Hang Seng 19826.41 20118.80 Malaysia FTSE Bursa KLCI 1635.72 1633.39 FTSE/JSE Top 40 46636.41 46393.38 Nasdaq 100 4345.34 4322.56 FTSEurofirst 80 (Eur) 4011.45 3988.29
Shanghai A 2938.32 2975.71 HS China Enterprise 8301.01 8425.78 Mexico IPC 45598.02 45872.18 South Korea Kospi 1956.73 1968.06 Nasdaq Cmp 4745.40 4715.73 MSCI ACWI Fr ($) 395.14 396.42
Shanghai B 342.76 351.67 HSCC Red Chip 3505.52 3545.26 Morocco MASI 10046.93 10100.57 Kospi 200 239.82 241.03 NYSE Comp 10274.63 10257.61 MSCI All World ($) 1641.63 1648.49
Shanghai Comp 2807.51 2843.40
Hungary Bux 26026.21 26556.35 Netherlands AEX 434.46 432.30 Spain IBEX 35 8775.10 8698.70 S&P 500 2051.29 2047.21 MSCI Europe (Eur) 1321.40 1323.30
Shenzhen A 1847.43 India1898.30 BSE Sensex 25704.61 25773.61 AEX All Share 670.52 668.03 Sri Lanka CSE All Share 6680.15 6670.79 Wilshire 5000 21224.32 21238.05 MSCI Pacific ($) 2232.53 2210.00
Shenzhen B 1022.75 1047.48 S&P CNX 500 6627.95 6634.30 New Zealand NZX 50 6982.63 6974.87 Sweden OMX Stockholm 30 1337.17 1331.71 Venezuela IBC 14424.81 15375.59 S&P Euro (Eur) 1342.07 1335.15
Colombia COLCAP 1343.88 1357.57
Indonesia Jakarta Comp 4729.16 4729.16 Nigeria SE All Share 26818.77 26441.03 OMX Stockholm AS 475.88 475.02 Vietnam VNI 622.45 624.75 S&P Europe 350 (Eur) 1361.06 1350.31
Croatia CROBEX 1693.54 1692.10
Ireland ISEQ Overall 6190.37 6165.94 Norway Oslo All Share 660.68 651.99 Switzerland SMI Index 7973.93 7906.76 S&P Global 1200 ($) 1817.82 1815.67
Israel Tel Aviv 100 12.11 12.11 Pakistan KSE 100 36318.21 36137.12 Stoxx 50 (Eur) 2826.55 2801.13
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO May 18 %Chg %Chg May 18 %Chg %Chg May 18 %Chg %Chg May 18 %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
Time Warner Cable 104.2 209.56 -0.44 Lloyds Banking 173.5 69.50 2.21 Novartis N 363.6 66.25 0.00 Mitsubishi Ufj Fin,. 732.5 525.50 21.40 Taylor Wimpey 196.50 9.4 -3.3 Polymetal Int 809.00 16.0 38.4 Georgia Healthcare 218.00 24.9 59.6 Industrial Metals 1232.07 8.0 71.3
Apple 17.0 94.74 1.25 Vodafone 151.7 229.65 2.40 Nestle N 262.7 65.71 0.00 Suzuki Motor 682.9 2613.00 -270.00 Fresnillo 1144.00 7.4 63.1 Allied Minds 348.90 9.8 -12.8 Hochschild Mining 154.00 21.2 219.1 Banks 3223.97 3.0 -15.6
Target 15.9 67.17 -6.44 Glaxosmithkline 125.9 1437.50 -2.83 Telefonica 234.6 9.31 0.00 Toyota Motor 633.1 5537.00 4.00 Ashtead 961.50 6.1 -14.9 Supergroup 1366.00 8.4 -17.0 Lonmin 192.75 17.9 130.8 Mobile Telecommunications 5157.24 2.9 1.0
Hospira 11.8 89.95 -0.01 Imperial Brands 112.5 3688.50 -35.85 Roche Gs 229.3 220.30 0.00 Sumitomo Mitsui Fin,. 354.9 3446.00 114.00 Barratt Developments 556.00 5.8 -11.4 Bovis Homes 942.00 8.3 -7.2 Premier Oil 76.50 9.7 57.7 Household Goods 16832.09 2.2 2.0
Amazon.com 11.6 700.00 4.73 Bt 111.9 439.15 -2.10 Unicredit 222.6 2.81 0.00 Sony 353.9 2944.00 80.50 Lloyds Banking 69.50 5.8 -4.9 Evraz 125.10 7.7 70.8 Exillon Energy 68.50 9.6 -36.0 Industrial Engineering 8163.90 2.1 13.9
Facebook Class A 10.1 117.93 0.58 Royal Dutch Shell 110.1 1733.00 -20.86 Intesa Sanpaolo 221.3 2.18 0.00 Softbank . 331.1 6010.00 82.00 Berkeley Holdings (the) 3059.00 5.1 -17.2 Shawbrook 279.50 7.5 -20.2 Foxtons 157.25 9.6 -16.4 General Retailers 2783.73 1.7 -7.4
Baxter Int 7.7 44.63 0.03 Hsbc Holdings 104.2 435.50 0.68 Daimler Ag Na O.n. 213.3 57.75 0.00 Mizuho Fin,. 311.7 168.60 4.40 Royal Bank Of Scotland 223.70 4.7 -25.9 Restaurant 318.10 7.5 -54.6 Hill & Smith Holdings 999.00 9.2 29.5 Industrial Transportation 2847.62 1.6 9.9
Bank Of America 7.6 14.52 0.51 Sabmiller 100.1 4213.50 3.50 Ing Groep 212.0 10.33 0.21 Kddi 303.0 3117.00 -68.00 Marks And Spencer 442.10 4.3 -3.6 Weir 1201.00 7.3 20.1 Speedy Hire 40.50 8.3 -6.6 Real Estate & Investment Servic 2678.10 1.4 -12.9
Wal-mart Stores 7.2 63.30 -1.80 Bp 99.2 364.60 -1.76 Allianz Se Vna O.n. 208.8 137.05 0.00 Nippon Telegraph And Telephone 293.3 4759.00 -121.00 Standard Chartered 520.00 4.2 -8.1 Ibstock 207.10 7.3 -6.8 Trinity Mirror 122.50 5.8 -26.2 General Financial 8627.01 1.3 -8.9
Tesla Motors 6.1 212.58 7.92 Bhp Billiton 95.0 843.40 -18.63 Total 197.9 43.16 0.09 Fast Retailing Co., 228.5 28585.00 -75.00 Persimmon 2030.00 3.7 0.1 Crest Nicholson Holdings 560.00 7.0 0.5 S&U 2240.00 5.6 -8.4 Travel & Leisure 8427.11 1.2 -6.9
Standard Life 333.30 3.7 -15.1 Onesavings Bank 292.20 6.8 -17.4 Mothercare 118.75 4.9 -46.0 Life Insurance 6745.59 1.2 -13.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Whitbread 4086.00 3.7 -7.4 Polypipe 304.60 6.8 -12.6 Hostelworld 268.00 4.8 23.9 Food & Drug Retailers 2646.90 1.2 6.1
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Charter Comm Del Cl A 225.65 22.29 10.96 Allied Minds 348.90 34.70 11.04 Deutsche Wohnen Ag 28.23 1.12 4.15 Inpex 906.10 67.80 8.09 Mediclinic Int 830.00 -6.0 - Talktalk Telecom 244.90 -9.6 12.7 Lakehouse 34.50 -26.1 -62.6 Food Producers 8278.06 -3.1 -6.4
Micron Technology 10.14 0.47 4.86 Shawbrook 279.50 15.10 5.71 Zodiac Aerospace 21.30 0.62 3.00 Thb Japan Steel Works, 421.00 29.00 7.40 Coca-cola Hbc Ag 1322.00 -5.3 -8.3 Ocado 265.40 -8.0 -12.7 Hunting 296.00 -12.7 -3.1 Tobacco 49700.89 -2.1 8.1
Western Digital 38.33 1.58 4.30 Booker 174.90 9.10 5.52 Bollore 3.23 0.09 2.90 Unitika 59.00 3.00 5.36 Glencore 132.95 -4.8 43.9 Entertainment One 167.30 -6.8 0.2 Ferrexpo 31.75 -11.2 47.7 Personal Goods 26717.41 -2.0 3.4
yte Genomics 78.73 3.18 4.21 Ophir Energy 72.15 2.97 4.38 Rwe Ag 8.83 0.24 2.81 Haseko 1137.00 54.00 4.99 Burberry 1112.00 -4.7 -6.8 Icap 434.10 -6.4 -14.8 St. Ives 102.00 -10.3 -54.4 Forestry & Paper 14250.51 -2.0 -0.9
The Charles Schwab 29.09 1.17 4.19 Royal Bank Of Scotland 223.70 9.23 4.30 Accor 38.78 0.92 2.43 Shinsei Bank, 169.00 8.00 4.97 Itv 205.50 -4.5 -25.7 Drax 301.90 -6.0 23.4 Severfield 49.00 -9.3 -25.4 Automobiles & Parts 6417.99 -2.0 -10.9
Associated British Foods 2959.00 -4.4 -11.2 Meggitt 390.70 -5.3 4.0 Lamprell 73.50 -8.1 -26.1 Health Care Equip.& Services 6945.39 -2.0 -4.2
Downs Downs Downs Downs
Sainsbury (j) 253.40 -4.3 -2.7 3i Infrastructure 171.30 -4.4 -0.3 Dialight 509.00 -7.5 13.1 Pharmaceuticals & Biotech. 12186.11 -1.6 -5.5
Target 67.17 -6.44 -8.75 Marshalls 324.00 -22.90 -6.60 Grifols Sa 14.99 -14.40 -48.99 Suzuki Motor 2613.00 -270.00 -9.37
Inmarsat 762.00 -4.1 -32.4 Carillion 272.40 -3.8 -10.1 Stv 351.00 -7.4 -30.5 Aerospace & Defense 4066.74 -1.5 -2.1
Hormel Foods 35.55 -3.25 -8.38 Glencore 132.95 -6.26 -4.59 Bayerische Motoren Werke Ag 64.40 -4.15 -6.05 Marui Co., 1655.00 -62.00 -3.61
Centrica 201.70 -3.9 -7.5 Fidessa 2324.00 -3.6 16.0 Tt Electronics 134.00 -6.9 -14.4 Beverages 15535.91 -1.5 0.9
Scripps Networks Interactive Common Class A 61.24 -3.25 -5.04 Greencore 368.00 -14.86 -3.88 Industrivarden Ab 16.14 -0.82 -4.81 Tokuyama 267.00 -9.00 -3.26
Intercontinental Hotels 2613.00 -3.5 -18.0 Ip 153.30 -3.5 -25.2 Gulf Marine Services 44.25 -6.8 -57.3 Media 7117.71 -1.0 -4.0
Discovery Communications Series A 26.51 -0.94 -3.42 Entertainment One 167.30 -6.30 -3.63 Svenska Handelsbanken Ab 11.40 -0.50 -4.18 Minebea Co., 859.00 -27.00 -3.05
Admiral 1862.00 -3.2 12.3 Phoenix Holdings 830.00 -2.8 -9.5 The Gym 238.00 -6.7 15.3 Real Estate Investment Trusts 3101.31 -0.5 -4.8
Freeport-mcmoran 11.13 -0.39 -3.34 Anglo American 606.10 -22.71 -3.61 Suez 14.66 -0.55 -3.62 Nisshin Seifun . 1821.00 -48.00 -2.57
Imperial Brands 3688.50 -3.1 2.7 Paysafe 370.00 -2.7 -0.8 E2v 194.75 -6.1 -13.2 Mining 9037.47 -0.5 23.0
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
May 18 Currency Mid Change Mid Change Mid Change May 18 Currency Mid Change Mid Change Mid Change May 18 Currency Mid Change Mid Change Mid Change May 18 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.1075 -0.0240 15.9126 -0.1068 20.6244 0.1804 Indonesia Indonesian Rupiah 13389.0000 90.5000 15102.2042 27.0924 19573.9916 335.0829 Poland Polish Zloty 3.8991 0.0436 4.3980 0.0275 5.7002 0.1226 ..Three Month 0.6841 -0.0072 0.7713 -0.0120 - -
Australia Australian Dollar 1.3749 0.0125 1.5508 0.0064 2.0100 0.0390 Israel Israeli Shekel 3.8396 0.0246 4.3309 0.0062 5.6133 0.0941 Romania Romanian Leu 3.9873 0.0304 4.4975 0.0120 5.8292 0.1048 ..One Year 0.6845 -0.0072 0.7707 -0.0120 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4253 -0.0021 0.5512 0.0057 Japan Japanese Yen 109.5950 0.6450 123.6183 0.1132 160.2219 2.6043 Russia Russian Ruble 65.2625 0.5900 73.6132 0.3008 95.4102 1.8487 United States United States Dollar - - 1.1280 -0.0056 1.4619 0.0152
Bolivia Bolivian Boliviano 6.8850 -0.0100 7.7660 -0.0502 10.0655 0.0905 ..One Month 109.5949 0.6448 123.6183 0.1132 160.2218 2.6041 Saudi Arabia Saudi Riyal 3.7506 0.0002 4.2305 -0.0209 5.4831 0.0575 ..One Month - - 1.1279 -0.3187 1.4620 0.0152
Brazil Brazilian Real 3.5343 0.0387 3.9865 0.0239 5.1669 0.1099 ..Three Month 109.5947 0.6444 123.6183 0.1132 160.2215 2.6036 Singapore Singapore Dollar 1.3777 0.0100 1.5539 0.0036 2.0140 0.0355 ..Three Month - - 1.1276 -0.3188 1.4620 0.0153
Canada Canadian Dollar 1.2939 0.0038 1.4595 -0.0030 1.8916 0.0252 ..One Year 109.5933 0.6417 123.6181 0.1129 160.2218 2.6024 South Africa South African Rand 15.7439 0.1854 17.7584 0.1213 23.0167 0.5082 ..One Year - - 1.1264 -0.3188 1.4624 0.0153
Chile Chilean Peso 690.8800 -2.0000 779.2818 -6.1629 1010.0290 7.6419 Kenya Kenyan Shilling 101.0500 0.2000 113.9799 -0.3431 147.7296 1.8303 South Korea South Korean Won 1182.7000 9.0000 1334.0327 3.5334 1729.0430 31.0553 Venezuela Venezuelan Bolivar Fuerte 9.9850 0.0150 11.2626 -0.0393 14.5975 0.1740
China Chinese Yuan 6.5356 0.0129 7.3719 -0.0222 9.5547 0.1183 Kuwait Kuwaiti Dinar 0.3019 0.0001 0.3405 -0.0016 0.4414 0.0047 Sweden Swedish Krona 8.2891 0.0554 9.3498 0.0161 12.1183 0.2066 Vietnam Vietnamese Dong 22282.0000 -23.5000 25133.1428 -152.2662 32575.0937 305.7870
Colombia Colombian Peso 3030.2400 12.9750 3417.9761 -2.3779 4430.0478 64.9797 Malaysia Malaysian Ringgit 4.0495 0.0310 4.5677 0.0123 5.9201 0.1066 Switzerland Swiss Franc 0.9816 0.0057 1.1071 0.0009 1.4350 0.0231 European Union Euro 0.8866 0.0044 - - 1.2961 0.0199
Costa Rica Costa Rican Colon 535.8300 0.0700 604.3923 -2.9421 783.3543 8.2722 Mexico Mexican Peson 18.3772 0.0764 20.7286 -0.0170 26.8664 0.3908 Taiwan New Taiwan Dollar 32.6790 0.0625 36.8604 -0.1134 47.7749 0.5887 ..One Month 0.8865 0.0044 - - 1.2960 0.0199
Czech Republic Czech Koruna 23.9554 0.1194 27.0206 0.0003 35.0215 0.5380 New Zealand New Zealand Dollar 1.4772 0.0138 1.6662 0.0073 2.1596 0.0425 Thailand Thai Baht 35.6050 0.1150 40.1608 -0.0704 52.0526 0.7093 ..Three Month 0.8862 0.0044 - - 1.2959 0.0199
Denmark Danish Krone 6.5931 0.0316 7.4367 -0.0014 9.6388 0.1463 Nigeria Nigerian Naira 199.0500 - 224.5195 -1.1224 291.0003 3.0353 Tunisia Tunisian Dinar 2.0612 0.0029 2.3249 -0.0084 3.0134 0.0356 ..One Year 0.8850 0.0044 - - 1.2953 0.0199
Egypt Egyptian Pound 8.8800 0.0215 10.0162 -0.0258 12.9820 0.1664 Norway Norwegian Krone 8.2330 0.0684 9.2865 0.0311 12.0363 0.2244 Turkey Turkish Lira 2.9719 0.0090 3.3522 -0.0066 4.3448 0.0583
Hong Kong Hong Kong Dollar 7.7642 0.0014 8.7577 -0.0421 11.3508 0.1205 Pakistan Pakistani Rupee 104.7200 0.0050 118.1195 -0.5848 153.0949 1.6041 United Arab Emirates UAE Dirham 3.6730 - 4.1430 -0.0207 5.3697 0.0560
Hungary Hungarian Forint 280.3760 2.1384 316.2515 0.8431 409.8944 7.3692 Peru Peruvian Nuevo Sol 3.3210 0.0070 3.7459 -0.0107 4.8551 0.0608 United Kingdom Pound Sterling 0.6840 -0.0072 0.7715 -0.0120 - -
India Indian Rupee 66.9800 0.1550 75.5504 -0.2020 97.9211 1.2456 Philippines Philippine Peso 46.6700 0.2475 52.6417 0.0174 68.2290 1.0697 ..One Month 0.6840 -0.0072 0.7715 -0.0120 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries May 18 May 17 May 16 May 13 May 12 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 2676.70 2667.20 2659.40 2650.90 2642.80 0.00 2875.90 2547.10 Industrial Metals & 56.97 Electronic & Elec Eq 0.78 Food Producers -4.37 FTSE 100 Price Change FTSE 100 Price Change
May 18 chge% Index May 17 May 16 ago yield% Cover ratio adj Return FT 30 Div Yield 1.73 1.74 1.73 1.74 1.74 0.00 3.93 2.74 Mining 21.81 Chemicals 0.53 FTSE 250 Index -4.47 3I Group PLC 487.50 4.90 Legal & General Group PLC 223.40 3.20
FTSE 100 (100) 6165.80 -0.03 6229.36 6167.77 6151.40 6995.10 4.03 0.70 35.37 103.30 4913.80 P/E Ratio net 25.74 25.70 25.73 25.66 25.59 0.00 19.44 14.26 Basic Materials 17.54 Nonlife Insurance 0.12 Health Care -4.55 Admiral Group PLC 1862 -8.00 Lloyds Banking Group PLC 69.50 2.22
FTSE 250 (250) 16881.24 0.21 17055.24 16845.08 16699.32 18176.13 2.72 2.10 17.53 183.42 11878.58 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Oil & Gas Producers 11.15 Household Goods & Ho 0.11 Pharmace & Biotech -4.66 Anglo American PLC 606.10 -22.60 London Stock Exchange Group PLC 2604 20.00
FTSE 250 ex Inv Co (208) 18328.56 0.33 18517.49 18268.18 18108.17 19785.67 2.74 2.23 16.32 201.48 13152.38 FT 30 hourly changes Oil & Gas 10.74 Software & Comp Serv -0.25 Real Est Invest & Tr -4.75 Antofagasta PLC 421.10 -12.70 Marks And Spencer Group PLC 442.10 12.40
FTSE 350 (350) 3439.67 0.01 3475.12 3439.31 3426.65 3867.26 3.80 0.87 30.11 54.07 5519.35 8 9 10 11 12 13 14 15 16 High Low Tobacco 9.80 Oil Equipment & Serv -0.77 Leisure Goods -5.40 Arm Holdings PLC 946.00 18.00 Mediclinic International PLC 830.00 -
FTSE 350 ex Investment Trusts (308) 3416.11 0.02 3451.32 3415.33 3403.11 3845.89 3.83 0.87 30.05 54.17 2822.80 2667.2 2659.1 2660.4 2663.8 2660.3 2660.6 2659.4 2666.6 2671.8 2679.2 2652.4 Industrial Eng 9.62 Industrials -0.92 Consumer Services -5.70 Ashtead Group PLC 961.50 34.00 Merlin Entertainments PLC 431.40 3.00
FTSE 350 Higher Yield (105) 3163.95 -0.35 3196.56 3175.00 3163.08 3642.57 5.29 0.43 43.51 68.13 5238.22 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Industrial Transport 7.68 Construct & Material -0.94 Technology -5.74 Associated British Foods PLC 2959 -21.00 Mondi PLC 1323 -21.00
FTSE 350 Lower Yield (245) 3387.22 0.40 3422.14 3373.59 3361.44 3714.32 2.18 2.04 22.54 31.90 3619.34 Personal Goods 5.74 Mobile Telecomms -1.19 Fixed Line Telecomms -5.74 Astrazeneca PLC 3900.5 -30.00 Morrison (Wm) Supermarkets PLC 188.90 -0.40
FTSE SmallCap (284) 4560.27 -0.38 4607.28 4577.56 4561.33 4752.55 3.01 1.29 25.81 47.13 6317.99 Food & Drug Retailer 4.99 FTSE 100 Index -1.66 Travel & Leisure -8.09
FTSE SmallCap ex Inv Co (152) 4171.38 -0.25 4214.37 4181.86 4153.93 4240.36 2.99 1.62 20.64 39.59 6063.50 FX: EFFECTIVE INDICES Consumer Goods 4.08 FTSE SmallCap Index -1.75 General Retailers -8.92
Aviva PLC 433.40 12.30 National Grid PLC 999.20 -5.30
Babcock International Group PLC 980.50 5.00 Next PLC 5400 40.00
FTSE All-Share (634) 3390.18 0.00 3425.13 3390.29 3377.83 3801.50 3.78 0.88 29.94 52.66 5502.02 Gas Water & Multi 3.32 Aerospace & Defense -1.81 Automobiles & Parts -9.18
May 17 May 16 Mnth Ago May 18 May 17 Mnth Ago Bae Systems PLC 481.70 -4.60 Old Mutual PLC 169.00 2.10
FTSE All-Share ex Inv Co (460) 3352.81 0.02 3387.37 3352.23 3340.03 3767.14 3.82 0.88 29.79 52.74 2816.01 Utilities 3.13 FTSE All{HY-}Share Index -2.15 Financial Services -9.71 Barclays PLC 170.40 6.15 Paddy Power Betfair PLC 8955 80.00
FTSE All-Share ex Multinationals (569) 1131.26 0.62 947.27 1124.29 1115.26 1267.27 3.08 1.42 22.96 12.96 1950.75 Australia 89.40 88.99 93.91 Sweden 79.50 79.52 80.82 Beverages 2.46 Equity Invest Instr -2.24 Tech Hardware & Eq -10.68 Barratt Developments PLC 556.00 5.00 Pearson PLC 814.00 -3.00
FTSE Fledgling (98) 7664.75 -0.41 7743.75 7696.60 7693.06 7779.93 2.70 0.72 51.82 68.20 13936.89 Canada 90.38 90.42 90.61 Switzerland 156.83 156.80 158.91 Electricity 2.36 Telecommunications -3.04 Financials -12.28 Berkeley Group Holdings (The) PLC 3059 - Persimmon PLC 2030 20.00
FTSE Fledgling ex Inv Co (49) 10483.54 -0.58 10591.60 10545.19 10555.00 10314.86 2.78 0.27 133.24 89.88 18535.57 Denmark 106.98 107.01 106.85 UK 86.09 85.74 84.25 NON FINANCIALS Index 1.51 Support Services -3.16 Real Est Invest & Se -13.25 Bhp Billiton PLC 843.40 -18.00 Provident Financial PLC 2870 25.00
FTSE All-Small (382) 3162.71 -0.38 3195.31 3174.76 3164.01 3292.00 2.99 1.26 26.49 32.46 5625.69 Japan 139.56 139.78 139.99 USA 99.90 99.90 100.00 Forestry & Paper 0.97 Health Care Eq & Srv -3.75 Life Insurance -16.18 BP PLC 364.60 -1.70 Prudential PLC 1309.5 22.00
FTSE All-Small ex Inv Co Index (201) 3112.00 -0.26 3144.07 3120.23 3100.33 3158.25 2.98 1.57 21.35 29.43 5731.29 New Zealand 111.80 111.28 112.22 Euro 88.24 88.34 88.29 Media -3.92 Banks -17.77 British American Tobacco PLC 4165.5 -23.50 Randgold Resources LD 6240 -110.00
FTSE AIM All-Share Index (825) 725.13 -0.13 732.60 726.08 724.34 762.43 1.53 0.48 137.01 3.57 784.34 Norway 87.25 87.43 86.55
British Land Company PLC 719.00 -4.00 Reckitt Benckiser Group PLC 6850 19.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 439.15 -3.10 RELX PLC 1224 -7.00
Oil & Gas (17) 6675.17 -0.79 6743.98 6728.44 6707.46 7694.72 6.62 -0.68 -22.11 153.72 5731.10 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 2077 1.00 Rexam PLC 629.50 -2.50
Oil & Gas Producers (10) 6367.75 -0.82 6433.39 6420.43 6399.95 7286.89 6.65 -0.71 -21.21 147.53 5654.31 Burberry Group PLC 1112 -31.00 Rio Tinto PLC 1993.5 -40.50
Oil Equipment Services & Distribution (7)13785.99 0.06 13928.09 13777.66 13763.99 19510.83 5.66 0.21 83.43 257.83 10321.74 FTSE GLOBAL EQUITY INDEX SERIES Capita PLC 1070 -6.00 Rolls-Royce Holdings PLC 656.00 -8.00
Basic Materials (27) 3274.47 -1.91 3308.22 3338.39 3283.19 4779.88 4.20 0.26 92.82 48.76 3263.42 Carnival PLC 3549 -29.00 Royal Bank Of Scotland Group PLC 223.70 9.20
Chemicals (7) 11740.09 0.12 11861.10 11726.38 11677.38 12839.76 2.52 2.12 18.71 125.71 10206.85 May 18 No of US $ Day Mth YTD Total
YTD Gr Div May 18 No of US $ Day Mth YTD Total YTD Gr Div Centrica PLC 201.70 -1.30 Royal Dutch Shell PLC 1741 -16.00
Forestry & Paper (1) 15549.92 -1.56 15710.20 15796.74 15843.76 17453.99 3.01 2.97 11.20 347.94 16514.15 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Coca-Cola Hbc AG 1322 -28.00 Royal Dutch Shell PLC 1733 -19.00
Industrial Metals & Mining (2) 1235.83 -0.16 1248.57 1237.87 1200.43 1907.49 0.46 2.79 77.40 0.00 1078.50 FTSE Global All Cap 7709 448.42 0.7 -1.7 -0.6 0.5620.25
2.6 Oil & Gas 152 334.31 1.4 1.4 9.6 517.72 11.1 3.8 Compass Group PLC 1276 6.00 Royal Mail PLC 508.00 5.50
Mining (17) 8739.36 -2.26 8829.44 8941.86 8767.44 13524.22 4.57 -0.02-1359.76 132.94 4563.83 FTSE Global All Cap 7079 462.39 0.3 7.3 -0.3 0.2624.68
2.5 Oil & Gas Producers 110 315.13 1.3 1.3 10.4 496.72 11.9 3.9 Crh PLC 1999 -22.00 Rsa Insurance Group PLC 478.80 4.90
FTSE Global Large Cap 1426 394.48 0.7 -1.9 -1.0 0.1558.63
2.8 Oil Equipment & Services 32 297.32 2.1 2.1 7.1 420.05 8.5 3.5 Dcc PLC 6450 65.00 Sabmiller PLC 4213.5 3.50
Industrials (119) 4374.01 -0.08 4419.10 4377.66 4346.47 4818.08 2.57 1.45 26.78 47.66 4394.17
Construction & Materials (14) 5301.15 -1.07 5355.80 5358.31 5352.75 5087.49 2.39 0.05 780.34 80.34 5501.83 FTSE Global Mid Cap 1643 607.23 0.7 -1.1 0.9 1.8800.34
2.2 Basic Materials 256 372.51 1.2 1.2 6.0 553.21 7.4 3.0 Diageo PLC 1843.5 -12.50 Sage Group PLC 589.50 -7.50
Aerospace & Defense (9) 4217.62 -1.10 4261.10 4264.56 4268.80 5383.44 2.75 1.51 24.04 71.61 4431.69 FTSE Global Small Cap 4640 631.10 0.8 -0.9 0.6 1.4806.64
2.1 Chemicals 124 584.36 0.9 0.9 -1.2 871.55 0.2 2.8 Direct Line Insurance Group PLC 369.60 0.60 Sainsbury (J) PLC 253.40 -0.10
General Industrials (6) 3724.44 -0.39 3762.83 3739.14 3713.98 3627.59 3.09 1.56 20.79 48.86 4108.02 FTSE All-World 3069 261.82 0.7 -1.8 -0.7 0.4382.23
2.7 Forestry & Paper 16 197.14 0.5 0.5 0.6 323.63 2.8 3.8 Dixons Carphone PLC 430.50 9.30 Schroders PLC 2536 31.00
Electronic & Electrical Equipment (10) 5444.35 -0.04 5500.46 5446.62 5433.74 5780.16 2.24 1.94 23.02 18.69 4838.28 FTSE World 2545 464.80 0.7 -1.7 -0.6 0.6911.35
2.7 Industrial Metals & Mining 62 290.00 1.2 1.2 12.7 428.98 13.2 2.9 Easyjet PLC 1487 50.00 Severn Trent PLC 2210 -15.00
Industrial Engineering (14) 8636.08 -0.32 8725.10 8663.85 8492.39 9773.04 3.13 1.31 24.34 156.89 10309.85 FTSE Global All Cap ex UNITED KINGDOM In 7388 462.08 0.7 -1.7 -0.3 0.7630.04
2.5 Mining 54 423.55 2.1 2.1 30.9 628.92 32.6 3.6 Experian PLC 1275 8.00 Shire PLC 4098 -2.00
Industrial Transportation (8) 4324.31 0.88 4368.88 4286.52 4237.76 4536.91 3.84 0.82 31.87 35.82 3669.61 FTSE Global All Cap ex USA 5752 407.83 0.4 -2.8 -2.2 -0.8600.42
3.2 Industrials 537 306.63 0.8 0.8 2.5 430.52 3.5 2.4 Fresnillo PLC 1144 -16.00 Sky PLC 927.50 -6.00
Support Services (58) 6577.02 0.48 6644.81 6545.80 6481.62 7155.72 2.34 1.78 24.03 49.38 6650.20 FTSE Global All Cap ex JAPAN 6446 458.76 0.7 -1.6 0.0 1.1640.19
2.6 Construction & Materials 111 444.54 0.6 0.6 6.1 652.81 7.1 2.2 Gkn PLC 274.50 -3.50 Smith & Nephew PLC 1141 -10.00
FTSE Global All Cap ex Eurozone 7064 463.18 0.8 -1.6 -0.2 0.8628.91
2.5 Aerospace & Defense 26 519.94 0.9 0.9 2.6 723.73 3.7 2.3 Glaxosmithkline PLC 1437.5 -6.50 Sse PLC 1525 -22.00
Consumer Goods (41) 18862.59 -0.36 19057.02 18930.24 19078.06 17513.81 2.88 1.78 19.56 244.82 13480.37
FTSE Developed 2096 422.98 0.7 -1.4 -0.9 0.3589.93
2.6 General Industrials 56 222.53 0.7 0.7 2.6 336.09 3.8 2.7 Glencore PLC 132.95 -3.55 St. James's Place PLC 899.00 17.50
Automobiles & Parts (1) 6450.88 -1.26 6517.37 6533.13 6566.03 8608.22 3.17 1.81 17.42 136.30 6056.66
FTSE Developed All Cap 5670 444.36 0.7 -1.3 -0.7 0.5612.79
2.5 Electronic & Electrical Equipment 69 304.56 1.0 1.0 -3.7 393.58 -3.0 2.1 Hammerson PLC 564.00 -7.00 Standard Chartered PLC 520.00 2.30
Beverages (6) 15560.77 -0.40 15721.16 15622.99 15777.70 14633.42 2.49 1.59 25.27 99.50 10666.85
FTSE Developed Large Cap 900 390.09 0.7 -1.6 -1.2 0.0551.77
2.7 Industrial Engineering 104 560.36 1.4 1.4 4.6 775.79 5.9 2.6 Hargreaves Lansdown PLC 1300 16.00 Standard Life PLC 333.30 13.20
Food Producers (10) 8350.54 -0.79 8436.62 8417.08 8557.60 8172.30 1.96 1.61 31.73 11.14 6996.92
FTSE Developed Europe Large Cap 223 314.40 0.3 -2.4 -4.7 -2.6506.52
3.8 Industrial Transportation 98 513.73 0.4 0.4 3.8 718.41 4.6 2.5 HSBC Holdings PLC 435.50 0.90 Taylor Wimpey PLC 196.50 2.90
Household Goods & Home Construction (14)14075.89 0.52 14220.98 14002.49 13896.81 12639.58 2.19 2.68 17.05 143.69 9675.27
FTSE Developed Europe Mid Cap 305 499.71 0.4 -0.9 -2.5 -1.0727.16
2.8 Support Services 73 279.90 0.7 0.7 1.5 377.50 2.4 2.0 Imperial Brands PLC 3688.5 -32.00 Tesco PLC 163.00 -1.50
Leisure Goods (2) 5233.29 0.68 5287.23 5197.93 5176.27 5147.26 4.94 1.22 16.66 129.52 4536.39
FTSE Dev Europe Small Cap 695 704.35 0.6 -0.7 -3.7 -2.6 2.6 Consumer Goods
994.14 424 419.29 0.3 0.3 0.7 603.12 1.8 2.5 Informa PLC 662.00 -6.50 Travis Perkins PLC 1819 7.00
Personal Goods (6) 23261.68 -0.71 23501.45 23428.74 23768.40 23793.05 2.95 2.94 11.56 312.14 15210.07
FTSE North America Large Cap 292 441.77 1.0 -0.7 1.2 2.1586.70
2.3 Automobiles & Parts 104 337.01 0.3 0.3 -11.7 467.22 -10.4 3.2 Inmarsat PLC 762.00 -17.00 Tui AG 1033 4.00
Tobacco (2) 49700.97 -0.66 50213.28 50028.71 50640.04 43612.24 3.74 1.19 22.48 1063.92 30956.30
FTSE North America Mid Cap 396 659.33 1.0 -0.1 3.0 3.6819.08
1.9 Beverages 48 596.46 0.2 0.2 4.3 867.44 5.1 2.5 Intercontinental Hotels Group PLC 2613 -2.00 Unilever PLC 3090 -16.50
Health Care (20) 8974.52 -0.43 9067.03 9013.66 9004.97 9722.05 3.94 0.56 45.05 207.14 6695.86
FTSE North America Small Cap 1484 658.85 1.1 -0.2 2.7 3.3796.38
1.8 Food Producers 103 583.97 0.1 0.1 4.5 867.29 6.1 2.2 International Consolidated Airlines Group S.A. 527.00 8.50 United Utilities Group PLC 948.50 -1.50
Health Care Equipment & Services (8) 7008.47 -0.49 7080.72 7043.04 7041.84 6994.04 1.64 1.81 33.68 49.88 5983.26
FTSE North America 688 295.78 1.0 -0.6 1.5 2.3402.39
2.2 Household Goods & Home Construction 48 412.53 0.6 0.6 2.7 589.88 3.9 2.4 Intertek Group PLC 3336 -11.00 Vodafone Group PLC 229.65 2.65
Pharmaceuticals & Biotechnology (12)12100.34 -0.43 12225.06 12152.33 12139.53 13217.38 4.20 0.51 46.81 300.81 8033.77
FTSE Developed ex North America 1408 216.84 0.3 -2.7 -4.3 -2.7343.38
3.3 Leisure Goods 31 132.34 0.1 0.1 0.4 171.02 0.8 1.5 Intu Properties PLC 288.40 -6.10 Whitbread PLC 4086 76.00
Consumer Services (96) 4674.26 0.44 4722.44 4654.00 4644.68 5150.29 2.49 1.74 23.11 49.95 4264.35 FTSE Japan Large Cap 176 304.09 0.6 -3.2 -7.2 -6.3384.30
2.3 Personal Goods 79 605.52 0.4 0.4 1.3 827.79 2.2 2.1
Food & Drug Retailers (7) 2761.10 0.12 2789.56 2757.70 2786.39 3273.13 1.44 2.55 27.19 22.92 3183.68 Itv PLC 205.50 -0.90 Wolseley PLC 3960 20.00
FTSE Japan Mid Cap 307 474.15 0.1 -3.0 -3.5 -2.7577.96
1.9 Tobacco 11 1351.79 0.5 0.5 11.1 2674.51 12.5 3.6 Johnson Matthey PLC 2935 18.00 Worldpay Group PLC 260.90 -0.90
General Retailers (32) 2730.65 1.05 2758.79 2702.31 2683.51 3190.28 2.69 2.10 17.70 15.44 3010.34
FTSE Global wi JAPAN Small Cap 780 513.60 -0.3 -1.7 -2.4 -1.4647.35
2.2 Health Care 178 438.19 0.8 0.8 -4.4 617.18 -3.3 2.0 Kingfisher PLC 358.20 0.20 WPP PLC 1576 -12.00
Media (22) 7198.17 -0.46 7272.37 7231.60 7211.04 7724.76 2.94 1.32 25.71 98.95 4306.65
FTSE Japan 483 127.54 0.5 -3.2 -6.5 -5.5181.05
2.2 Health Care Equipment & Services 64 686.82 1.2 1.2 5.7 790.17 6.1 1.0 Land Securities Group PLC 1154 -8.00
Travel & Leisure (35) 8235.82 0.94 8320.72 8158.93 8141.95 8765.53 2.31 1.80 24.12 95.18 7594.68
FTSE Asia Pacific Large Cap ex Japan 550 526.85 0.4 -5.3 -2.6 -1.8794.70
3.4 Pharmaceuticals & Biotechnology 114 321.35 0.7 0.7 -7.6 471.56 -6.4 2.4
Telecommunications (6) 3923.36 0.36 3963.80 3909.10 3857.96 4025.23 4.22 -0.27 -89.26 3.65 4115.01 FTSE Asia Pacific Mid Cap ex Japan 422 729.68 0.1 -5.8 -2.3 1060.87
-1.6 3.2 Consumer Services 394 386.86 0.6 0.6 -0.7 506.50 0.0 1.8
Fixed Line Telecommunications (4) 5076.94 -0.64 5129.28 5109.51 5067.56 5395.16 3.09 1.85 17.49 0.00 4402.99
Mobile Telecommunications (2) 5149.43 0.98 5202.51 5099.25 5017.19 5162.54 4.90 -1.08 -18.94 7.87 4823.69
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1431 484.84
972 418.30
-0.1
0.4
-3.9
-5.3
-2.9
-2.6
-2.2
-1.8
694.62
2.9 Food & Drug Retailers
670.59
3.4 General Retailers
55 298.67
122 524.69
0.8
0.9
0.8
0.9
-0.4 407.07
-1.5 670.03
0.5
-0.8
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8579.85 -0.67 8668.29 8637.44 8599.87 8904.84 4.70 1.35 15.77 79.68 9224.82 FTSE Emerging All Cap 2039 574.98 0.1 -5.6 0.7 1.3825.36
3.2 Media 87 293.21 0.1 0.1 1.4 384.87 2.2 2.0 May 18 May 17 May 16 May 13 May 12 Yr Ago
Electricity (2) 8899.01 -1.31 8990.74 9017.25 8856.91 10022.15 5.53 1.26 14.41 146.48 12060.54 FTSE Emerging Large Cap 526 541.87 0.3 -5.7 0.6 1.2782.39
3.3 Travel & Leisure 130 373.68 0.3 0.3 -2.0 493.92 -1.3 1.8 SEAQ Bargains 3905.00 4275.00 4452.00 4452.00 4452.00 4671.00
Gas Water & Multiutilities (5) 8033.24 -0.50 8116.05 8073.25 8066.95 8152.39 4.49 1.38 16.17 59.90 8653.27 FTSE Emerging Mid Cap 447 737.65 -0.2 -5.3 3.9 1055.49
4.8 3.1 Telecommunication 91 165.27 0.2 0.2 4.9 295.11 6.5 4.1 Order Book Turnover (m) 171.59 26.25 87.55 87.55 87.55 132.89
Financials (282) 4081.44 0.97 4123.52 4042.08 4009.73 5080.44 4.07 1.55 15.80 83.83 3638.50 FTSE Emerging Small Cap 1066 599.42 -0.2 -5.0 -2.6 -2.0829.35
3.1 Fixed Line Telecommuniations 42 142.17 0.1 0.1 7.2 279.03 9.4 4.5 Order Book Bargains 840872.00 532277.00 797137.00 797137.00 797137.00 817650.00
Banks (9) 3183.34 1.70 3216.16 3130.17 3094.78 4552.82 5.20 0.87 22.14 78.24 2248.84 FTSE Emerging Europe 111 306.97 0.7 -2.2 14.915.7 453.82
4.1 Mobile Telecommunications 49 167.60 0.2 0.2 1.7 269.39 2.5 3.5 Order Book Shares Traded (m) 1796.00 1063.00 1369.00 1369.00 1369.00 1356.00
Nonlife Insurance (10) 2884.73 0.67 2914.47 2865.64 2855.05 2444.77 2.87 2.31 15.04 53.63 4941.11 FTSE Latin America All Cap 239 706.75 0.1 -2.3 18.119.41055.54
3.2 Utilities 163 255.01 0.0 0.0 7.5 473.24 8.9 3.8 Total Equity Turnover (£m) 2636.56 2827.84 2696.52 2696.52 2696.52 3206.69
Life Insurance/Assurance (10) 6845.43 2.01 6915.99 6710.77 6667.14 8649.42 4.31 1.53 15.13 201.97 6464.38 FTSE Middle East and Africa All Cap 222 611.97 -2.1 -8.9 -1.1 0.3 3.1 Electricity
924.76 111 279.41 -0.2 -0.2 7.9 513.31 9.4 3.6 Total Mkt Bargains 915274.00 605719.00 884010.00 884010.00 884010.00 907553.00
Index- Real Estate Investment & Services (21) 2719.17 0.67 2747.20 2701.20 2684.78 3193.31 2.48 5.38 7.48 31.39 7072.79 FTSE Global wi UNITED KINGDOM All Cap In 321 315.68 0.6 -1.2 -4.0 -2.5 3.9 Gas Water & Multiutilities
506.99 52 268.66 0.3 0.3 6.7 510.77 8.0 4.1 Total Shares Traded (m) 5829.00 5028.00 5923.00 5923.00 5923.00 5709.00
Real Estate Investment Trusts (26) 2814.25 -0.72 2843.26 2834.66 2806.00 3172.49 3.24 5.12 6.03 41.09 3375.96 FTSE Global wi USA All Cap 1957 506.03 1.0 -0.6 1.0 1.7 2.1 Financials
653.66 688 188.17 0.4 0.4 -6.3 296.58 -4.9 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7380.97 0.72 7457.05 7328.16 7294.66 8525.62 3.30 1.96 15.47 107.70 8126.45 FTSE Europe All Cap 1410 367.02 0.4 -2.0 -3.8 -1.8 3.5 Banks
571.93 245 160.19 0.3 0.3 -10.3 269.51 -8.8 3.9 (c) Market closed.
Equity Investment Instruments (174) 7526.74 -0.51 7604.32 7565.53 7530.43 8013.97 2.77 1.05 34.29 79.94 4001.33 FTSE Eurozone All Cap 645 343.83 0.2 -2.4 -4.2 -2.4 3.3 Nonlife Insurance
541.27 68 211.32 0.3 0.3 -1.5 299.23 0.2 2.6
Non Financials (352) 4052.42 -0.31 4094.19 4064.98 4055.54 4385.88 3.68 0.65 41.80 56.51 5756.42 FTSE RAFI All World 3000 3051 5396.12 0.7 -2.2 -0.6 3.4 Life Insurance
6887.24
0.8 50 175.82 0.6 0.6 -11.3 271.09 -9.9 3.5
Technology (19) 1380.99 0.85 1395.22 1369.38 1369.52 1438.20 1.57 1.72 37.08 12.72 1743.14 FTSE RAFI US 1000 1008 9020.59 1.0 -0.6 2.0 2.5 Financial Services
11513.22
3.0 150 213.24 0.7 0.7 -4.1 286.50 -3.3 2.2 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1854.49 -0.06 1873.60 1855.52 1845.87 1675.50 2.01 1.63 30.67 24.03 2464.35 FTSE EDHEC-Risk Efficient All-World 3069 318.45 0.6 -1.3 0.9 1.9 2.4 Technology
432.02 186 168.68 1.4 1.4 -3.2 202.60 -2.5 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) 1457.27 1.72 1472.29 1432.60 1440.11 1711.03 1.16 1.87 46.26 8.47 1682.36 FTSE EDHEC-Risk Efficient Developed Europe 528 272.72 0.4 -1.2 -2.3 -0.9 2.8 Software & Computer Services
403.80 89 309.72 0.9 0.9 -0.1 356.96 0.3 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 97 117.86 2.0 2.0 -6.7 146.06 -5.8 2.9 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Alternative Energy 10 96.92 0.3 0.3 -6.3 129.17 -5.6 1.3 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6133.91 6138.45 6143.78 6152.57 6139.18 6133.98 6127.26 6138.95 6145.35 6169.12 6116.22 Real Estate Investment & Services 103 270.46 -0.1 -0.1 -4.4 436.66 -3.2 2.6
FTSE 250 16800.60 16780.78 16759.35 16753.16 16763.28 16834.52 16806.93 16826.27 16859.29 16881.35 16739.97 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4575.74 4568.90 4566.98 4568.73 4568.12 4567.82 4563.21 4565.28 4563.79 4576.45 4560.27
FTSE All-Share 3373.88 3375.04 3376.62 3380.32 3375.02 3374.84 3370.85 3376.68 3380.55 3390.18 3365.52 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Time of FTSE 100 Day's high:15:29:30 Day's Low13:10:30 FTSE 100 2010/11 High: 6410.26(20/04/2016) Low: 5536.97(11/02/2016) WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE All-Share Day's high:15:35:29 Day's Low13:10:00 FTSE 100 2010/11 High: 3504.16(20/04/2016) Low: 3046.53(11/02/2016) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Assura Pre 61 51.1 28.8 36.6 2.2 4.9 0.55 0.5 Apr 20 1.05 0.95 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Burberry Group Pre 2514.7 2523.2 415.6 444.6 70 76.4 26.8 25.5 Aug 5 37 35.2 05/18 130.00 Oncimmune Holdings PLC - - - - -
There are currently no rights offers by any companies listed on the LSE. Countryside Properties Int 286.173 - 18.105 - 3.1 - - - - - - 05/13 200.00 MOTR Motorpoint Group PLC 226.00 -1.00 227.00 200.00 22600.0
Impax Asset Management Group Int 9.434 10.422 2.059 1.941 1.35 1.62 0.5 0.4 Jun 23 1.693 1.5 05/12 9.00 AIM GSH Green & Smart Holdings PLC 10.25 -0.50 11.00 10.00 2835.8
Marston's Int 444.3 400.5 22.8 27.5L 4.2 4.2L 2.6 2.5 Jul 5 7.075 4.6 05/10 148.00 AIM HOTC Hotel Chocolat Group PLC 197.50 -6.50 225.00 148.00 22285.5
Northern 3 VCT Pre 2.201 2.676 1.533 1.936 2.1 2.5 3.5 3.5 Jul 15 5.5 5.5 05/10 8.00 TOOP Toople PLC 8.63 -0.28 10.00 8.00 0.0
Patisserie Holdings Int 49.984 43.683 8.385 6.955 6.68 5.5 1 - Jun 24 2.661 - 05/06 208.00 AIM MIDW Midwich Group PLC 247.50 13.50 250.00 209.48 19663.4
Proteome Sciences Pre 1.882 1.561 3.326L 4.227L 1.23L 1.69L - - - - - 05/05 108.00 AIM MCL Morses Club PLC 104.50 1.00 116.50 104.00 13532.8
SABMiller Pre 19833 22130 4074 4830 1.678 2.057 93.75 82.446 Aug 12 122 109 04/15 156.00 AIM OSI Osirium Technologies PLC 191.00 3.50 203.00 161.50 1985.3
SSE Pre 28781.3 31654.4 593.3 735.2 46.1 55.3 62.5 61.8 Sep 23 89.4 88.4 04/13 5.75 BMV Bluebird Merchant Ventures Ltd 3.63 -0.40 6.20 3.35 670.5
SSP Group Int 896.7 859.2 22.2 13.8 2.9 1.6 2.5 2.1 Jul 1 4.688 2.1 04/13 100.00 AIM PILR Pacific Industrial & Logistics REIT PLC 105.00 0.00 109.00 100.00 1083.4
Unicorn AIM VCT Int 0.911 0.83 0.284 0.346 0.34 0.51 - - - - -

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.
Thursday 19 May 2016 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 38.80 -0.31 39.72 30.97 4.98 16.18 238852.8 Lockheed 241.66 0.13 245.37 181.91 2.65 21.03 73574.12
ANZ♦ 24.70 0.19 33.86 21.86 11.26 10.35 52415.72 Nokia 4.66 0.12 7.11 4.52 3.09 26.04 30346.93 AstellasPh 1503.5 3.50 2009 1358 1.92 19.49 30480.5 AtlasCpcoB 195.10 1.40 234.30 162.60 3.20 20.06 9184.5 AutomData 85.55 0.20 91.00 64.29 2.43 26.49 38971 Lowes 78.90 2.83 79.08 62.62 1.40 28.07 70807.91
BHPBilltn 19.43 0.22 30.69 14.06 11.63 23.28 45389.06 SampoA 38.93 0.05 47.67 36.76 4.78 13.78 24537.63 Bridgestne 3710 5.00 5182 3561 3.48 10.87 27525.07 Ericsson 63.55 0.70 97.60 60.70 5.56 14.14 23331.88 Avago Tech 144.37 3.20 159.65 100.00 1.17 27.80 56368.97 Lyondell 82.55 -1.34 106.50 69.10 3.84 8.50 35226.33
CmwBkAu 77.62 -1.08 88.88 69.79 7.65 14.90 96831.9 France (€) Canon 3103 14.00 4380 2977.5 4.79 15.95 37763.3 H&M 262.90 1.40 362.00 259.80 3.75 21.67 46326.91 BakerHu 46.20 -0.60 66.08 37.58 1.50 -8.46 20231.61 Marathon Ptl♦ 37.48 1.41 60.38 29.24 3.28 10.09 19855.56
CSL 113.91 0.91 115.06 85.40 1.43 27.68 37920.26 Airbus Grpe 53.21 -0.97 68.50 49.96 2.32 17.71 46788.66 CntJpRwy 19465 130.00 22960 18255 0.56 13.96 36587.34 Investor 277.80 1.70 343.70 256.80 3.37 -7.75 15264.96 BankAm 14.52 0.51 18.48 10.99 1.40 11.46 149096.86 Marsh&M 64.40 0.36 64.75 50.81 2.40 21.09 33567.41
NatAusBk♦ 27.52 -0.61 34.90 23.82 11.06 10.88 52943.12 AirLiquide 96.50 0.51 123.65 90.77 2.52 19.81 37485.22 Denso 4077 -30.00 6548 3879 2.73 13.72 32887.89 Nordea Bk 77.30 0.60 114.60 72.40 7.95 9.69 37767.58 Baxter 44.63 0.03 46.95 32.18 1.97 6.62 24647.49 MasterCard 95.65 0.05 101.76 74.61 0.74 28.28 103140.82
Telstra 5.72 -0.06 6.53 4.98 7.56 16.65 50864.23 AXA 20.71 0.08 26.02 18.80 4.38 9.42 56708.83 EastJpRwy 9931 1.00 12815 9162 1.14 18.52 35566.56 SEB 75.70 1.20 111.10 72.75 5.99 9.90 19817.53 BB & T♦ 34.49 0.87 41.90 29.95 3.19 13.26 26980.34 McDonald's 126.54 -1.16 131.96 87.50 2.80 23.94 111079.7
Wesfarmers 42.85 -0.44 45.00 36.65 6.62 19.75 35098.17 BNP Parib 44.98 0.66 61.00 37.00 3.43 8.32 63235.89 Fanuc 16265 -120.00 28200 15300 4.30 18.99 30563.9 SvnskaHn 102.90 0.90 383.80 95.85 4.55 11.94 23236.15 BectonDick 165.31 -0.12 169.08 128.87 1.55 43.46 35079.11 McKesson 177.52 4.01 243.61 148.29 0.62 17.74 39946.09
Westpc♦ 29.99 -0.21 35.15 27.69 9.55 11.81 72764.23 ChristianDior 147.85 -0.40 195.35 140.80 2.07 18.11 30306.29 FastRetail 28585 -75.00 61970 26320 1.28 54.69 27666.55 Swedbank 170.90 -0.10 208.00 150.80 6.33 12.71 23338.91 BerkshHat 211830 1135 221985 186900 - 13.96 170874.36 Medtronic 80.77 -0.04 82.00 55.54 1.84 46.11 113162.26
Woolworths 22.36 -0.37 29.22 20.50 8.81-265.12 20797.21 Cred Agr 8.78 0.14 14.48 7.59 4.10 6.86 26123.56 Fuji Hvy Ind 3872 -23.00 5223 3275 2.54 8.17 27658.71 Telia Co 38.32 0.16 52.95 36.61 8.14 18.50 20017.59 Biogen 264.71 1.19 420.99 242.07 - 16.00 57985.12 Merck 54.58 0.26 61.70 45.69 3.39 32.84 151078.82
Belgium (€) Danone 59.98 0.07 66.50 51.73 2.39 29.88 44310.57 Hitachi 508.00 9.10 858.00 431.00 2.13 10.00 22404.31 Volvo 91.75 -1.55 116.00 72.20 3.40 12.30 17963.8 BkNYMeln 40.65 0.81 45.45 32.20 1.70 14.45 43783.41 Metlife♦ 44.36 1.07 58.23 35.00 3.44 9.37 48736.85
AnBshInBv 109.15 -0.50 124.20 87.73 3.15 25.03 198000.84 EDF 11.78 0.18 23.31 9.13 9.74 6.75 25534.99 HondaMtr 2938 -37.00 4499 2726 2.71 11.27 48560.39 Switzerland (SFr) BlackRock 354.24 5.42 372.95 275.00 2.54 18.45 57870.22 Microsoft♦ 50.88 0.37 56.85 39.72 2.68 38.50 399976.71
KBC Grp 48.32 -0.13 66.00 44.15 4.25 13.37 22784.56 Engie SA 13.42 0.04 18.91 12.96 7.12 -7.06 36863.3 JapanTob 4499 -15.00 4850 3551 2.60 18.53 82102.28 ABB 20.20 0.15 22.16 15.94 - 23.92 47636.72 Boeing♦ 131.83 -0.73 150.59 102.10 2.95 17.51 83977.18 Mnstr Bvrg 149.78 0.48 160.50 113.08 - 41.88 30411.73
Esslr Intl♦ 112.70 1.15 125.15 95.01 0.86 33.75 27518.8 KDDI 3117 -68.00 3446 2519 1.74 18.15 76531.84 CredSuisse 13.68 0.36 28.94 12.23 5.24 -5.44 27280.27 BrisMySq 71.54 0.33 73.06 51.82 2.13 75.07 119422.24 MondelezInt 43.43 0.18 48.58 35.88 1.55 9.21 67406
Brazil (R$)
Hermes Intl 320.65 3.15 365.55 281.20 0.88 36.27 38182.22 Keyence 68300 -390.00 70100 50500 0.26 38.01 37891.98 Nestle 72.90 0.15 76.95 65.70 2.94 25.93 236803.39 CapOne♦ 70.03 1.20 92.10 58.49 2.32 10.03 35862.33 Monsanto 97.26 -0.46 121.09 81.22 2.22 29.86 42487.54
Ambev 18.60 0.04 20.46 15.99 2.89 23.50 82718.51
LOreal 159.85 1.90 178.95 140.40 1.61 28.65 101507.95 MitsbCp 1920 53.00 2837 1565 2.59 10.50 27856.64 Novartis 74.45 1.10 103.20 67.00 3.63 26.57 199265.14 CardinalHlth 77.37 0.27 91.23 74.73 2.04 18.17 25208.33 MorganStly 27.00 0.84 41.04 21.16 2.26 11.64 52289.97
Bradesco♦ 27.36 0.53 32.00 16.27 3.85 8.46 21496.3
LVMH 144.80 0.85 176.60 130.75 2.18 21.42 82825.32 MitsubEst 2135 27.00 2968 1962.5 0.63 59.42 27086.08 Richemont 61.55 0.80 87.10 60.05 2.52 20.49 32733.02 Carnival 50.18 0.25 55.77 40.52 2.40 20.08 28208.03 MylanNV 42.37 1.35 74.66 37.59 - 26.59 21538.48
Cielo 32.64 -1.05 38.56 23.36 1.47 20.21 20908.93
Nmrcble-SFR 27.91 0.31 57.27 25.57 - -35.94 13796.5 MitsubishiEle 1282 2.00 1718 947.00 1.90 12.59 25117.13 Roche 245.30 1.40 283.90 229.90 3.17 24.53 175578.05 Caterpillar♦ 71.00 -0.05 89.62 56.36 4.31 36.82 41456.31 Netflix 91.61 2.98 133.27 79.95 - 311.25 39236.45
ItauHldFin 26.98 0.30 35.69 21.49 2.75 6.18 23260.71
Orange 15.15 0.09 16.98 12.21 3.78 21.15 45265.53 MitsuiFud 2726.5 38.50 3879 2260.5 0.93 23.91 24664.62 Swiss Re 86.20 -0.05 99.75 76.85 5.23 7.88 32555.59 CBS 52.31 -1.15 62.97 38.51 1.17 16.60 21725.03 NextEraE 120.14 0.36 121.51 93.74 2.69 19.74 55435.81
Petrobras 12.30 -0.10 15.74 5.67 - -4.20 25901.45
PernodRic 94.60 -0.35 114.90 88.00 1.82 27.47 28321.7 MitUFJFin 525.50 21.40 936.80 431.90 3.10 5.61 67938.66 Swisscom 480.30 -3.20 572.00 452.70 4.78 17.36 25348.15 Celgene 101.70 1.02 140.72 92.98 - 48.59 78776.97 Nike 56.17 -0.93 68.20 47.25 1.12 24.82 74788.67
Vale 15.04 -0.09 22.19 8.60 7.17 -2.37 13690.75
Renault 77.93 0.13 100.25 59.59 2.33 7.93 25994.45 Mizuho Fin 168.60 4.40 280.40 149.30 4.15 6.39 38506.71 Syngent 395.80 4.40 435.20 288.50 2.88 28.00 37479.38 CharlesSch♦ 29.09 1.17 35.72 21.51 0.84 25.94 38447.99 NorfolkS♦ 86.40 0.54 98.75 64.51 2.78 15.63 25551.75
Canada (C$) Murata Mfg 12660 60.00 22220 11610 1.43 13.95 26021.6 ChevrnTx♦ 100.93 0.18 107.51 69.58 4.31 143.54 190223.01 Northrop 213.74 0.14 218.84 152.31 1.52 19.09 38568.83
Safran 59.16 -0.18 72.45 48.87 2.00 -60.99 27828.31 UBS 14.42 0.26 22.57 14.01 5.42 10.68 56562.79
BCE 60.21 0.04 60.39 51.56 4.45 18.72 40413.75 NipponTT 4759 -121.00 5419 4005 1.80 16.56 91032.81 Chubb 124.63 0.57 125.84 96.00 2.19 16.94 57887.95 NXP 87.46 2.71 114.00 61.61 - 19.31 30261.41
Sanofi 70.11 0.36 101.10 66.44 3.88 21.97 101764.41 Zurich Fin 236.00 1.60 310.60 194.70 - 23.60 36181.99
BkMontrl♦ 82.29 0.23 82.79 64.01 3.78 12.98 40929.24 Nissan Mt 1035 -15.00 1350 922.00 3.27 8.40 42447.46 Cigna 129.60 -0.84 170.68 123.54 0.03 15.66 33244.1 Occid Pet 75.68 -0.66 79.86 58.22 4.03 -6.86 57799.96
Sant Gbn 38.34 0.10 44.84 31.47 1.54 60.80 24255.28 Taiwan (NT$)
BkNvaS 63.26 0.46 66.99 51.17 4.13 11.80 58802.69 Nomura 462.20 -1.00 909.20 435.10 4.50 8.12 16121.08 Cisco 26.73 0.08 29.90 22.46 3.24 12.85 134494.51 Oracle 39.57 -0.03 45.24 33.13 1.59 18.60 164210.16
Schneider 55.87 0.66 71.35 45.32 3.28 23.78 37101.38 Chunghwa Telecom 111.00 0.50 112.00 93.10 4.52 19.31 26349.57
Brookfield 44.07 0.09 47.27 37.70 1.46 17.55 33616.48 Nppn Stl 2298 26.50 3505 1773.5 2.56 10.90 19926.44 Citigroup♦ 45.29 1.59 60.95 34.52 0.45 8.87 132922.94 Pepsico 101.35 -1.02 106.94 76.48 2.82 28.45 146391.67
SocGen 34.02 0.47 48.77 26.61 3.62 7.28 30943.5 Formosa PetChem 89.20 1.20 94.50 63.90 0.98 14.53 26001.87
CanadPcR 172.84 0.90 220.86 140.02 0.82 17.06 20447.79 NTTDCMo 2678.5 -30.00 2888 1961 2.36 22.14 96746.71 CME Grp 96.07 1.63 100.87 81.87 2.22 24.87 32533.13 Perrigo 93.08 2.79 200.96 84.85 0.50 95.52 13330.45
Total 43.16 0.09 48.45 35.21 5.70 27.72 120672.18 HonHaiPrc 74.40 0.10 99.70 72.50 5.02 7.90 35603.53
CanImp 101.20 0.60 102.90 82.19 4.14 11.82 30867.18 Panasonic 963.10 13.20 1853.5 799.00 1.42 145.55 21556.97 Coca-Cola 44.59 -0.16 47.13 36.56 3.06 26.48 192896.55 Pfizer♦ 33.25 0.22 36.46 28.25 3.49 26.85 201656.24
UnibailR 233.75 -2.35 257.85 212.05 3.92 10.52 26129.63 MediaTek 203.50 1.00 439.50 192.00 11.17 13.36 9786.63
CanNatRs 38.13 -0.17 39.59 21.27 2.46 -83.71 32338.99 Seven & I■ 4749 -10.00 5998 4168 1.36 28.42 38411.54 Cognizant 61.83 0.19 69.80 51.22 - 22.15 37460.91 Phillips66♦ 78.85 0.54 94.12 69.79 2.89 11.60 41442.1
Vinci 65.36 0.23 66.69 50.08 2.62 18.67 43510.76 TaiwanSem 147.00 - 163.00 112.50 3.16 12.79 116642.63
CanNatRy 76.65 0.66 83.81 66.62 1.74 16.59 46175.52 ShnEtsuCh 6317 5.00 7790 5160 1.50 20.53 24906.41 ColgtPlm 70.32 -0.53 72.72 50.84 2.20 45.54 62797 PhilMorris 99.22 -0.62 102.55 76.54 4.16 22.95 153916.45
Vivendi 17.17 0.28 24.83 16.30 17.96 14.63 26498.35
Enbridge♦ 52.89 0.12 62.68 40.03 3.70 28.95 37978.81 Softbank 6010 82.00 7800 4133 0.60 14.32 65842.14 Thailand (THB) Comcast 60.20 -0.23 64.99 50.01 1.73 17.92 145548.62 PNCFin 87.35 2.12 100.52 77.67 2.38 11.69 43613.43
GtWesLif 34.52 0.09 37.70 30.42 3.90 12.61 26490.39 Germany (€) PTT Explor 311.00 -1.00 370.00 197.00 3.31 41.05 24949.01
Sony 2944 80.50 3970 2199 0.69 30.30 33913.79 ConocPhil♦ 43.93 0.40 66.22 31.05 5.70 -8.70 54402.35 PPG Inds♦ 107.08 0.07 118.69 82.93 1.37 19.86 28490.07
ImpOil 41.05 -0.09 50.89 37.25 0.88 57.19 26890.75 Allianz 137.65 0.60 170.00 126.55 4.75 9.90 70955.21
SumitomoF 3446 114.00 5770 2819.5 4.06 9.35 44462.21 United Arab Emirates (Dhs) Corning 19.16 0.05 22.05 15.42 2.63 51.35 20603.68 Praxair 111.34 -0.94 124.17 95.60 2.64 21.19 31761.39
Manulife♦ 18.51 0.30 24.20 15.32 3.82 15.04 28215.46 BASF 67.65 -0.04 88.86 56.01 4.25 14.43 70085.59
Takeda Ph 4734 -62.00 6609 4709 3.44 -36.74 34136.64 Emirtestele 18.05 -0.15 19.10 11.35 4.08 18.82 42737.94 Costco 140.50 -3.10 169.73 117.03 1.19 25.65 61684.43 Priceline 1276.1 -1.93 1476.52 954.02 - 24.69 63344.57
Potash 21.19 -0.18 40.96 20.03 9.44 13.83 13738.93 Bayer 96.42 0.67 138.50 91.08 2.23 20.73 89936.73
TokioMarine 3710 25.00 5504 3310 2.62 14.46 25643.65 United Kingdom (p) CrownCstl 90.64 0.52 91.18 75.71 3.83 71.57 30596.41 ProctGmbl 80.14 -0.48 83.87 65.02 3.37 25.65 213320.81
RylBkC♦ 77.71 0.87 80.85 64.52 3.80 12.34 89380.58 BMW 70.99 -0.57 107.70 66.00 4.20 6.99 48203.89
Toyota 5537 4.00 8700 5256 3.67 8.30 168643.58 AscBrFd 2959 -21.00 3606 2850 1.15 41.47 34247.01 CSX 25.86 0.44 36.04 21.33 2.83 13.20 24718.72 Prudntl 78.07 2.16 92.60 57.19 3.34 7.11 34506.94
Suncor En 34.57 -0.55 40.35 27.32 3.38 -35.32 42267.67 Continental 182.25 -1.20 231.90 171.30 1.83 12.64 41115.2
Mexico (Mex$) AstraZen 3900.5 -30.00 4634 3746 4.82 24.28 72108.52 CVS 101.78 -0.33 113.65 81.37 1.47 21.69 109313.97 PublStor 257.10 -1.14 277.60 182.08 2.69 40.57 44576.52
ThmReut♦ 52.36 -0.09 55.92 47.25 3.38 25.96 30514.62 Daimler 57.60 -0.15 91.00 56.76 5.80 7.67 69507.57
AmerMvl 11.74 -0.05 16.94 10.87 2.42 22.59 26843.14 Aviva 433.40 12.30 546.00 400.10 4.38 19.43 25655.4 Danaher 98.36 -0.08 99.09 81.25 0.58 24.29 67740.08 Qualcomm 53.14 1.15 71.32 42.24 3.68 16.54 78050.81
TntoDom 56.41 0.29 56.50 47.75 3.43 13.86 80747.08 Deut Bank 14.75 0.34 32.31 13.03 5.23 -2.71 22939.66
FEMSA UBD 163.51 -1.50 176.84 133.52 1.47 34.30 31837.13 Barclays 170.40 6.15 289.90 143.91 3.81 -83.45 42103.51 Deere 82.24 -0.96 98.23 70.16 3.01 14.53 25932.39 Raytheon 130.45 0.61 132.43 95.32 2.14 20.05 38741.04
TrnCan 52.58 -0.12 54.74 40.58 4.11 -26.58 28542.35 Deut Tlkm 15.99 -0.03 17.57 13.39 3.21 12.72 83059.59
WalMrtMex 43.33 -0.21 47.44 35.50 1.41 26.19 41172.42 BP♦ 364.60 -1.70 461.65 249.44 7.67 -9.96 99369.52 Delphi♦ 67.21 0.15 90.57 55.59 1.57 15.46 18346.79 Regen Pharm 385.27 -1.11 605.93 348.96 - 60.10 39746.56
ValeantPh 37.04 -0.53 347.84 30.22 - -33.91 9819.5 DeutsPost 27.02 0.21 29.29 19.55 - 19.71 36954.68
BrAmTob 4165.5 -23.50 4357.13 3231.5 3.60 18.09 113526.79 Delta♦ 44.02 0.35 52.77 34.61 1.14 7.26 33965.49 ReynoldsAm 49.73 -0.59 52.54 35.39 3.02 10.33 70974.54
E.ON 8.29 -0.05 14.33 7.08 1.74 -2.27 18699.57 Netherlands (€)
China (HK$) BSkyB 927.50 -6.00 1180 917.97 3.54 25.40 23308.87 Devon Energy 34.36 -0.27 67.96 18.07 2.84 -1.03 18004.64 S&P Global 106.79 1.09 109.27 78.55 1.29 24.93 28256.63
Fresenius Med 73.33 0.69 83.17 63.10 1.05 23.68 25336.14 Altice 14.44 0.06 47.73 9.98 - -47.90 13370.97
AgricBkCh 2.69 -0.03 4.42 2.50 8.39 4.06 10649.77 BT 439.15 -3.10 502.60 404.00 2.82 16.13 63897.77 DiscFinServ♦ 54.38 0.64 60.28 42.86 2.09 10.29 22416.81 Salesforce 77.77 1.00 82.90 52.60 - -1052.77 52761.82
Fresenius SE 64.28 0.60 70.00 52.39 0.70 24.47 39568.82 ASML Hld 84.41 0.73 104.85 70.25 0.85 29.95 41257.88
Bk China 2.99 -0.03 5.48 2.83 7.88 4.44 32202.94 Compass 1276 6.00 1298 963.00 2.30 23.26 30656.34 Disney 99.01 -0.93 122.08 86.25 1.41 17.93 160642.24 Schlmbrg 73.98 -0.90 93.00 59.60 2.75 57.74 92647.68
HenkelKgaA 91.09 0.58 95.37 75.76 1.35 21.56 26692.84 Heineken 82.22 0.24 86.95 64.54 1.37 26.06 53418.76
BkofComm 4.51 -0.03 8.61 4.24 7.42 4.10 20337.34 Diageo 1843.5 -12.50 1964.38 1592.5 3.06 18.76 67828.28 DominRes 70.94 -0.14 76.59 64.54 3.79 22.02 43714.53 Sempra Energy 103.70 -0.28 108.44 86.72 2.80 20.79 25872.81
Linde 127.85 1.30 182.55 113.50 2.53 20.04 26784.41 ING 10.33 0.21 16.00 9.19 3.33 7.84 45176.39
BOE Tech 2.11 -0.19 4.78 1.55 0.94 36.17 54.07 GlaxoSmh♦ 1437.5 -6.50 1532.1 1227.5 5.57 114.42 102360.83 DowChem 51.07 -0.44 57.10 35.11 3.51 9.92 57342.82 Shrwin-Will♦ 292.24 0.40 309.00 218.27 0.99 25.25 27030.77
MuenchRkv 160.15 1.60 193.65 154.65 4.62 8.95 30139.03 Unilever♦ 39.05 0.28 42.84 32.86 2.91 23.77 75528.01
Ch Coms Cons 8.62 -0.18 14.80 5.77 2.43 7.29 4915.5 Glencore 132.95 -3.55 299.40 66.67 9.19 -5.26 27978.48 DukeEner♦ 78.07 -0.62 81.39 65.50 4.26 19.49 53782.72 SimonProp♦ 194.03 -1.45 214.80 170.99 3.28 33.45 60033.05
SAP 68.95 0.73 75.75 53.91 1.64 24.95 95543.86 Norway (Kr)
Ch Evrbrght 3.23 0.06 5.30 3.07 7.14 4.20 2857.46 HSBC 435.50 0.90 633.22 413.95 8.08 10.72 126130.39 DuPont♦ 64.16 -0.37 75.72 47.11 2.58 26.94 56044.53 SouthCpr♦ 27.06 -0.52 32.52 21.55 1.01 32.75 20936.51
Siemens 93.72 0.49 100.90 77.91 3.36 15.58 89855.17 DNB 99.85 2.35 140.20 90.10 3.51 7.21 19753.99
Ch Rail Cons 9.21 -0.32 15.96 6.72 2.02 7.75 2462.92 Imperial Brands 3688.5 -32.00 3898 2926 3.82 31.26 51697.39 Eaton♦ 60.56 -0.76 73.62 46.19 3.73 14.43 27736.48 Starbucks♦ 54.90 0.02 64.00 42.05 1.33 31.91 80423.01
Volkswgn 134.65 2.15 233.40 95.00 3.41 -44.67 44818 Statoil♦ 138.10 2.80 158.60 97.25 5.29 57.22 53485.92
Ch Rail Gp 5.86 -0.11 11.00 4.21 1.65 9.10 3175.53 LlydsBkg 69.50 2.22 89.35 55.84 3.24 -1.17 72519.28 eBay 23.73 0.46 29.83 21.52 - 14.20 27263.5 StateSt 61.16 1.47 81.26 50.73 2.26 13.74 24215.71
ChConstBk 4.55 -0.08 7.98 4.31 8.20 4.09 140889.36 Hong Kong (HK$) Telenor 136.80 1.20 186.10 116.80 2.81 53.33 24948.17 Ecolab 116.54 -0.49 122.48 98.62 1.19 34.41 34181.79 Stryker 109.88 -0.26 113.85 86.68 1.34 25.35 41093.04
Natl Grid 999.20 -5.30 1015.5 806.40 4.29 17.41 54726.36
China Vanke 17.74 -0.22 24.10 15.52 3.47 8.79 3004.47 AIA♦ 43.05 -0.80 53.60 36.85 1.19 25.47 66810.34 Qatar (QR) EMC 27.68 0.02 28.77 22.66 1.69 26.51 54059.6 Sychrony Fin 29.77 0.50 36.40 23.74 - 10.90 24825.81
Prudential♦■ 1309.5 22.00 1675 1045.99 2.91 12.98 49253.43
ChinaCitic 4.45 -0.04 7.02 4.00 - 4.14 8529.56 BOC Hold 21.85 -0.40 33.70 18.82 5.09 9.70 29753.92 QatarNtBk 138.50 0.30 166.67 122.50 2.54 10.09 31949.18 Emerson♦ 50.93 -1.42 62.75 41.25 3.77 17.02 32765.87 Target♦ 67.17 -6.44 85.81 65.50 3.31 12.41 40029.32
RBS 223.70 9.20 370.00 204.30 - -5.95 38259.38
ChinaLife 16.64 -0.16 40.20 16.12 2.94 13.94 15947.7 Ch OSLnd&Inv♦ 22.10 -0.15 30.35 20.45 2.47 6.16 28067.16 EOG Res 81.35 -0.22 92.04 57.15 0.84 -9.05 44764.99 TE Connect 58.41 0.12 71.04 51.70 2.30 18.85 20888.36
Russia (RUB) ReckittB♦ 6850 19.00 7069.82 5403 1.89 28.44 70628.91
ChinaMBank 15.36 -0.32 26.85 12.72 5.41 5.38 9082.23 ChngKng♦ 44.70 -0.60 77.55 38.20 0.78 10.15 22142.98 EquityResTP 67.79 -0.37 82.39 61.90 3.24 5.95 24777.43 Telsa Mtrs 212.58 7.92 286.65 141.05 - -26.70 28473.95
Gzprm neft 152.16 -1.42 170.43 122.75 4.19 5.02 55195.03 RELX♦ 1224 -7.00 1323 988.50 2.16 25.83 36160.88
ChinaMob 84.00 -1.70 108.50 79.00 3.33 13.36 221522 Citic Ltd 10.94 0.04 15.80 10.02 2.72 6.82 40989.05 Exelon♦ 34.06 -0.28 35.95 25.09 3.70 17.37 30221.91 TexasInstr 58.26 0.83 60.60 43.49 2.51 20.01 58506.26
Lukoil 2681 9.50 2902 2040.1 5.51 11.30 34941.35 RioTinto 1993.5 -40.50 2969.5 1557 7.71 -61.91 40056.35
ChinaPcIns 25.55 -0.25 47.10 23.70 2.32 11.01 9132.79 Citic Secs 15.62 -0.38 35.65 12.82 2.24 8.55 5871.09 ExpScripts 72.51 0.29 94.61 65.55 - 18.75 45865.19 TheTrvelers 110.82 0.40 118.28 95.21 2.24 10.23 32402.44
MmcNrlskNckl 9111 181.00 11284 7840 17.62 11.60 22091.93 RollsRoyce 656.00 -8.00 1025 497.00 2.15 146.43 17633.83
ChMinsheng 7.01 -0.17 11.60 6.13 3.26 4.49 6260.05 CK Hutchison♦ 89.10 -1.00 174.90 89.00 4.14 7.57 44292.71 ExxonMb♦ 89.83 0.30 90.00 66.55 3.31 28.41 372490.1 ThrmoFshr 149.53 0.71 150.95 117.10 0.41 29.53 58841.88
Novatek 641.10 8.80 650.00 488.70 9.08 15.28 29826.88 RylDShlA 1733 -19.00 2019.5 1256 7.50 -81.17 108318.31
ChMrchSecs RMB 15.65 - 35.39 13.45 5.05 9.55 11501.41 CNOOC 9.17 -0.06 13.06 6.41 5.97 17.07 52731.32 Facebook 117.93 0.58 121.08 72.00 - 71.23 272638.25 TimeWrnr 71.44 -1.38 91.34 55.53 2.07 14.24 56180.01
Rosneft 326.75 4.65 356.95 214.80 2.41 9.18 53061.9 SABMill 4213.5 3.50 4590.8 2773 1.76 34.90 99878.38
Chna Utd Coms RMB 3.88 -0.04 10.67 3.85 1.78 31.12 12583.78 HangSeng♦ 132.80 -0.90 162.10 121.10 4.19 9.29 32700.43 Fedex 159.40 0.71 185.19 119.71 0.63 42.98 42786.75 TimeWrnrC 209.56 -0.44 217.91 155.17 1.44 31.96 59662.01
Sberbank 122.94 0.23 125.78 66.50 0.35 13.79 40665.06 Shire 4098 -2.00 5870 3423 0.44 26.19 35540.23
ChShenEgy 11.54 -0.32 20.75 10.12 7.83 12.62 5051.35 HK Exc&Clr♦ 179.90 -3.00 311.40 160.10 2.89 27.27 28002.32 FordMtr♦ 13.25 0.11 15.84 10.44 4.61 6.01 51701.28 TJX Cos♦ 74.43 -1.16 79.20 63.53 1.11 21.66 49298.42
Surgutneftegas 34.03 0.51 41.16 30.31 - 2.22 18626.1 StandCh 520.00 2.30 1102.75 373.40 8.63 -8.97 24945.4
ChShpbldng RMB 5.85 -0.18 20.19 5.66 0.67 -36.99 16074.08 MTR 38.65 -0.20 39.15 33.10 2.70 17.53 29247.86 Franklin 35.56 0.49 52.23 31.00 1.89 12.67 20800.16 T-MobileUS 40.91 0.19 43.43 33.23 - 27.53 33631.5
Saudi Arabia (SR) Tesco 163.00 -1.50 227.35 137.00 - 59.06 19400.05
ChStConEng RMB 5.30 -0.03 11.25 4.88 3.34 6.07 24246.88 SandsCh 27.10 -0.55 37.55 20.75 7.29 19.46 28166.47 GenDyn 144.41 -0.59 153.76 121.61 2.48 15.30 44138.48 UnionPac 82.88 0.69 105.65 67.06 2.70 15.24 69700.72
AlRajhiBnk 59.37 0.01 69.00 44.70 2.55 12.54 25724.6 Vodafone 229.65 2.65 258.00 197.70 4.89 -43.01 89172.75
ChUncHK♦ 8.52 -0.19 14.14 7.87 2.91 21.21 26278.09 SHK Props 87.10 -1.25 137.60 79.00 2.74 8.40 32477.11 GenElectric 29.63 -0.09 32.05 19.37 3.16 46.17 272421.34 UPS B♦ 101.35 0.26 107.32 87.30 2.98 18.15 69977.23
Natnlcombnk 42.70 -0.10 71.25 36.60 3.66 9.26 22771.2 WPP 1576 -12.00 1690 1273 2.70 17.84 29797.22
CNNC Intl RMB 6.64 -0.11 14.38 4.07 - 25.88 3953.14 Tencent 161.10 -1.80 167.20 124.00 0.21 44.47 195194.17 GenMills 62.32 -0.67 65.49 47.43 2.96 24.19 37043.1 USBancorp 41.55 0.83 46.26 37.07 2.50 12.91 71723.42
SaudiBasic 84.24 1.09 109.75 59.50 6.59 13.71 67385.7 United States of America ($)
CSR 7.21 -0.12 16.98 6.61 2.03 13.75 4059.06 India (Rs) GenMotors 30.77 0.14 36.88 24.62 4.83 4.56 47380.43 UtdHlthcre 130.63 1.07 135.11 95.00 1.56 20.65 124202.5
SaudiTelec♦ 64.25 0.11 73.25 52.75 6.28 13.94 34263.46 21stC Fox A 28.21 -0.48 34.83 22.66 1.08 23.83 30910.43
Daqin RMB 6.36 -0.07 15.15 6.31 7.76 8.35 14467.32 Bhartiartl 351.25 - 452.45 282.30 0.63 25.67 20962.77 GileadSci 82.97 0.21 123.37 81.70 2.11 6.97 110501.23 UtdTech♦ 99.86 0.46 119.66 83.39 2.61 22.22 83569.41
Singapore (S$) 3M♦ 166.67 -0.03 171.27 134.00 2.55 21.04 101087.78
Gree Elec Apl 0.19 - 0.45 0.13 - -3.75 326.07 HDFC Bk 1140.65 - 1169.25 928.00 0.70 25.16 43072.12 GoldmSchs 158.34 3.69 218.77 139.05 1.67 17.61 65773.49 ValeroEngy 56.88 1.63 73.88 51.68 3.40 7.76 26720.02
DBS♦ 15.07 -0.03 21.50 13.01 4.14 8.33 27403.77 AbbottLb 37.81 0.10 51.74 36.00 2.64 26.10 55541.29
GuosenSec RMB 14.55 -0.07 34.94 13.28 1.41 10.16 4886.8 Hind Unilevr 825.50 - 944.00 766.40 1.72 38.85 26669.59 Halliburton 40.86 -0.31 46.79 27.64 1.79 -14.09 35109.57 Verizon 50.83 -0.08 54.49 38.06 4.49 11.36 207177.34
JardnMt US$ 54.65 0.65 62.72 45.00 2.63 11.47 38866.85 Abbvie 60.27 0.02 71.60 45.45 3.54 17.76 97478.2
HaitongSecs 11.88 -0.22 25.80 10.00 2.61 8.11 5216.98 HsngDevFin 1208.2 - 1372.4 1011.45 1.25 20.46 28497.62 HCA Hold 76.78 -0.49 95.49 43.91 - 14.22 30025.12 VertexPharm 81.08 0.37 143.45 75.90 - -48.38 20055.13
JardnStr US$ 28.94 0.14 35.01 25.24 0.94 8.96 32202.34 Accenture 116.77 0.55 117.59 88.43 1.90 20.38 94923.84
Hngzh HikVDT RMB 20.78 -11.97 56.48 20.30 1.52 17.83 10085.11 ICICI Bk 226.45 - 321.00 180.75 2.22 10.26 19661.79 Hew-Pack 11.60 0.07 16.16 8.91 5.65 4.61 20020.6 VF Cp 60.07 -0.34 77.40 52.21 2.34 21.15 25050.29
OCBC♦ 8.45 -0.01 10.51 7.41 4.43 8.93 25240.54 Adobe 96.57 0.64 98.00 71.27 - 58.38 48305.24
Hunng Pwr 5.17 -0.09 11.18 5.16 9.07 4.97 3129.89 Infosys 1209.85 - 2064 932.65 3.38 20.64 41284.8 HiltonWwde♦ 21.07 -0.61 29.77 16.16 1.01 13.11 20854.41 Viacom 38.77 -0.65 69.17 30.11 4.20 6.83 13432.11
SingTel 3.87 -0.03 4.44 3.38 4.36 16.59 44785.91 AEP♦ 64.13 -0.38 67.19 52.29 3.46 18.81 31507.93
IM Baotou Stl RMB 2.81 -0.08 7.44 2.66 - -20.25 6768.28 ITC 332.70 - 359.80 268.00 1.90 26.30 39971.68 HomeDep 131.66 -0.34 137.82 92.17 1.85 23.38 164771.59 Visa Inc♦ 77.36 0.57 81.73 60.00 0.68 26.96 147354.64
UOB 17.97 0.01 24.31 16.80 4.92 9.05 20965.44 Aetna 110.52 0.32 134.40 92.42 0.69 16.38 38748.66
In&CmBkCh 3.85 -0.05 7.00 3.72 8.23 4.09 43038.56 L&T 1309.85 - 1888 1016.05 1.15 24.22 18222.81 Honywell♦ 113.03 -0.60 116.56 87.00 2.00 18.03 86141.91 Walgreen♦ 76.82 0.34 97.30 71.50 1.94 23.87 84136.78
Aflac♦ 68.96 0.52 69.69 51.41 2.36 11.17 28546.48
IndstrlBk RMB 16.06 0.21 20.82 11.90 3.65 5.85 46817.5 OilNatGas 214.25 - 337.20 187.75 4.55 9.49 27366.62 South Africa (R) HumanaInc 171.50 0.70 219.79 155.24 0.69 23.53 25559.04 WalMartSto 63.30 -1.80 79.94 56.30 3.19 13.44 199036.1
AirProd 142.16 -0.72 152.16 114.64 2.35 21.47 30718.1
Kweichow RMB 244.44 -5.59 290.00 166.20 1.84 18.64 46983.45 RelianceIn 970.55 - 1089.75 818.00 1.03 10.69 46966.71 Firstrand 41.46 0.07 57.80 34.08 5.10 10.31 14772.03 IBM♦ 147.76 -0.24 174.44 116.90 3.58 10.93 141843.96 WellsFargo♦ 48.44 0.82 58.77 44.50 3.15 11.70 245932.19
Alexion 141.86 1.90 208.88 124.16 - 213.33 31779.5
Midea 1.74 - 2.68 1.65 5.71 10.22 48.19 SBI NewA 179.95 - 305.00 148.25 1.95 8.71 20855.63 MTN Grp 127.43 0.37 237.32 109.56 11.78 6.34 14937.29 IllinoisTool 103.57 -0.26 106.19 78.79 2.10 19.54 37219.99 Williams Cos 21.57 0.06 61.38 10.22 11.84 -22.52 16188.88
Allegran 229.98 2.40 340.34 195.50 - -36.43 90970.18
New Ch Life Ins 24.30 -0.35 54.90 22.00 1.04 7.43 3236.5 SunPhrmInds 795.30 - 1010 704.00 0.38 48.99 28576.34 Naspers N 2033.82 -44.90 2270 1521.98 0.25 58.16 56571.16 Illumina 140.52 1.75 242.37 127.10 - 49.66 20684.37 Yahoo 37.31 0.04 44.66 26.15 - -7.71 35409.75
Allstate 67.03 -0.07 69.48 54.12 1.87 16.10 25093.84
PetroChina 5.30 -0.12 9.82 4.16 3.68 51.65 14402.53 Tata Cons 2551.1 - 2770 2115 1.57 23.16 75048.65 South Korea (KRW) Intcntl Exch 258.93 1.35 268.89 220.28 1.22 21.85 30824.49 Yum!Brnds 80.40 -0.58 95.90 64.58 2.20 26.13 32758.24
Alphabet 720.52 0.33 810.35 538.85 - 29.82 211598.91
PingAnIns 33.55 -0.45 62.90 30.50 2.50 9.04 32181.8 Indonesia (Rp) HyundMobis 248000-8000.00 272000 185500 1.48 12.55 20412 Intel♦ 30.15 0.17 35.59 24.87 3.31 12.62 142229.65 Venezuela (VEF)
Altria 63.21 -0.67 65.53 47.31 3.56 22.42 123674.61
PngAnBnk RMB 10.30 - 17.45 9.30 1.74 6.34 18602.95 Bk Cent Asia 13025 - 14500 11000 1.13 18.50 23984.64 KoreaElePwr 60200 -200.00 63700 40800 5.15 2.91 32676.28 Intuit 102.57 0.42 109.21 79.63 1.11 49.94 26342.15 Bco de Vnzla 115.00 - 143.95 64.00 - - 1022.66
Amazon 700.00 4.73 722.45 418.36 - 283.90 330279.57
Pwr Cons Corp RMB 5.89 -0.10 17.85 5.60 1.75 14.91 2974.03 SK Hynix 26200 300.00 51700 25650 2.01 5.60 15639.85 John&John 113.23 -0.61 115.00 81.79 2.70 20.30 311441.7 Bco Provncl 3200 -650.00 4400 1450 - 0.65 809.99
Israel (ILS) AmerAir 32.81 0.17 49.68 30.99 1.24 2.89 18969.81
SaicMtr RMB 19.82 -0.07 27.36 14.00 6.74 7.02 33436.35 SmsungEl 1268000 4000 1393000 1033000 1.56 9.65 153280.73 JohnsonCn 42.56 0.06 54.52 33.62 2.63 64.15 27594.63 Mrcntl Srvcs 5350 - 6200 2250 0.18 24.57 746.02
TevaPha 190.10 -2.70 275.90 189.40 2.71 25.77 50938.58 AmerExpr 63.17 0.41 81.92 50.27 1.87 12.41 60076.76
ShenwanHong 0.17 0.01 0.40 0.12 - -0.23 55.38 Spain (€) JPMrgnCh 63.57 1.91 70.61 50.07 2.82 10.59 232453.81
Italy (€) AmerIntGrp 56.16 0.76 64.93 50.20 1.82-169.23 62844.86
ShgPdgBk RMB 17.56 0.31 20.12 11.91 4.43 6.19 50118.52 Kimb-Clark 125.89 -0.53 138.76 103.04 2.88 41.47 45336.49 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.98 0.03 4.50 3.33 3.62 16.12 45595.02 BBVA 5.65 0.04 9.48 5.24 6.73 21.15 41299 AmerTower 105.02 -0.34 107.24 83.07 1.75 66.92 44594.1
Sinopec Corp 5.15 -0.06 7.35 3.86 4.77 13.81 16923.06 KinderM 17.45 -0.23 42.99 11.20 9.36 512.79 38929.49 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 13.61 0.04 16.99 10.93 7.25 -5.26 55790.09 BcoSantdr 4.13 0.06 6.89 3.31 7.46 10.30 67242.51 Amgen♦ 150.98 0.87 181.81 130.09 2.27 15.71 113418.75
Sinopec Oil RMB 3.95 -0.14 14.23 3.86 - -37.14 1077.81 Kraft Heinz 81.26 -0.91 86.66 61.42 2.85 148.92 98802.44 based on intraday trading over a rolling 52 week period.
Generali 12.69 0.28 18.29 10.90 4.86 9.98 22327.78 CaixaBnk 2.41 0.01 4.51 2.33 5.11 19.69 16092.88 Anadarko 49.55 -0.19 86.55 28.16 1.77 -5.56 25291.64
Denmark (kr) Iberdrola 6.08 0.03 6.71 5.66 2.66 15.20 43835.7 Kroger♦ 34.02 -0.44 42.75 27.32 1.20 15.87 32447.82 ♦ ex-dividend
IntSPaolo 2.24 0.06 3.65 2.12 2.98 14.41 40106.96 Anthem 136.25 0.04 173.59 115.63 1.88 15.07 35827.35
DanskeBk 180.70 -0.80 218.00 168.30 4.54 13.10 26961.05 Inditex 28.37 0.48 35.38 26.00 1.40 31.08 99733.14 L Brands 64.13 -1.25 101.11 63.82 3.21 14.75 18404.13 ■ ex-capital redistribution
Luxottica 48.85 1.15 67.80 46.58 1.41 30.66 26654.4 Aon Cp 105.57 -0.15 106.78 83.83 1.16 21.22 27967.79
MollerMrsk 8815 -90.00 13690 7355 3.23 36.43 14229.57 Repsol 11.70 0.08 18.26 7.95 8.34 -10.47 19027.33 LasVegasSd 45.25 -0.17 57.77 34.88 6.00 19.97 35961.02 # price at time of suspension
Unicred 2.83 0.02 6.61 2.76 4.04 9.19 19748.2 Apple 94.74 1.25 132.97 89.47 2.23 10.38 518931.24
NovoB 360.20 0.70 415.00 305.10 1.82 26.12 109952.15 Telefonica♦ 9.31 0.01 14.31 8.48 8.23-237.93 52229.04 LibertyGbl 36.64 -0.57 58.66 30.65 - -32.81 9278.47
ArcherDan♦ 37.59 0.10 53.31 29.86 3.08 14.23 22087.21
Lilly (E)♦ 75.96 -0.43 92.85 67.88 2.69 34.29 83848.34

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
TevaPha 190.10 192.80 -2.70 -1.40 188.18 9811.4 -4.38 Hngzh HikVDT 20.78 32.75 -11.97 -36.55 -10.02 -32.5 -33.82 May 18 date Coupon S* M* F* price yield yield yield US May 18 date Coupon S* M* F* price yield yield yield US
ValeantPh 37.57 37.57 0.00 0.00 3.73 11.0 -13.05 Bco Provncl 3200.00 3850.00 -650.00 -16.88 -670.00 -17.3 -16.88 High Yield US$ US$
Williams Cos 21.57 21.51 0.06 0.28 2.07 10.6 29.32 Target 67.17 73.61 -6.44 -8.75 -8.53 -11.3 -19.43 Navient Corporation 06/18 8.45 BB- Ba3 BB 106.28 5.27 0.00 0.04 4.42 Halliburton Company 02/27 6.75 A A2 A- 124.17 3.99 0.00 -0.07 2.18
Sony 2944.00 2863.50 80.50 2.81 262.50 9.8 -0.55 Takeda Ph 4734.00 4796.00 -62.00 -1.29 -555.00 -10.5 -13.36 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 103.25 6.44 0.00 0.02 4.62
BHPBilltn 19.43 19.21 0.22 1.15 1.60 9.0 0.78 Bridgestne 3710.00 3705.00 5.00 0.13 -428.00 -10.3 -10.23 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Archer Daniels Midland Company 12/27 6.75 A A2 A 125.70 4.00 0.00 -0.01 2.18
Zurich Fin 234.40 234.40 0.00 0.00 18.10 8.4 12.01 UBS 14.16 14.16 0.00 0.00 -1.33 -8.6 -26.13 SouthTrust Bank 12/27 6.57 A Aa3 A+ 125.33 3.87 0.00 -0.27 2.05
Monsanto 97.26 97.72 -0.46 -0.47 6.92 7.7 9.31 ChinaMBank 15.36 15.68 -0.32 -2.04 -1.36 -8.1 -9.65 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 117.26 4.16 0.00 -0.33 -
MylanNV 42.37 41.02 1.35 3.29 2.73 6.9 -10.95 ChngKng 44.70 45.30 -0.60 -1.32 -3.40 -7.1 -13.62 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- 123.66 4.32 0.00 -0.07 -
MitsbCp 1920.00 1867.00 53.00 2.84 122.00 6.8 -3.91 BMW 71.56 71.56 0.00 0.00 -5.34 -6.9 -7.69 Brazil 01/18 8.00 BB+ Ba2 BB 105.31 4.65 0.01 0.17 3.79
Russia 07/18 11.00 BB+ Ba1 BBB- 117.65 2.60 0.00 -0.28 1.74 Euro
ShenwanHong 0.17 0.16 0.01 8.18 0.01 6.2 14.67 Pwr Cons Corp 5.89 5.99 -0.10 -1.67 -0.40 -6.4 -11.69 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 100.79 2.54 0.00 0.00 0.72
KBC Grp 48.32 48.44 -0.13 -0.26 2.66 5.8 0.60 SHK Props 87.10 88.35 -1.25 -1.41 -5.90 -6.3 -10.76 Peru 03/19 7.13 BBB+ A3 BBB+ 128.75 1.95 0.00 0.00 1.10
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Electricite de France (EDF) 03/27 4.13 A+ A2 A 122.21 1.91 0.00 0.00 0.09
LlydsBkg 69.50 67.28 2.22 3.30 3.81 5.8 1.52 CBS 52.31 53.46 -1.15 -2.15 -3.49 -6.3 -3.33 BHP Billiton Fin Ltd 09/27 3.25 A+ A3 A+ 114.98 1.78 0.00 0.19 -0.04
Hitachi 508.00 498.90 9.10 1.82 27.80 5.8 -3.13 Bradesco 26.83 26.83 0.00 0.00 -1.67 -5.9 4.50 Colombia 07/21 4.38 BBB Baa2 BBB 104.83 3.37 0.00 -0.01 2.04
Brazil 01/22 12.50 BB+ Ba2 BB 106.93 10.83 0.03 -0.87 9.49 Telia Company AB 09/27 3.00 A- Baa1 A- 114.27 1.61 0.02 0.02 -0.21
PTT Explor 311.00 312.00 -1.00 -0.32 17.00 5.8 8.74 ChShenEgy 11.54 11.86 -0.32 -2.70 -0.70 -5.7 -12.44
Poland 03/22 5.00 A- A2 A- 117.38 2.80 0.00 0.00 1.47 Yen
Devon Energy 34.36 34.63 -0.27 -0.78 1.82 5.6 7.10 NipponTT 4759.00 4880.00 -121.00 -2.48 -274.00 -5.4 -5.59
Turkey 09/22 6.25 - Baa3 BBB- 110.93 4.31 0.00 0.29 2.97 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
McKesson 177.52 173.51 4.01 2.31 8.63 5.1 1.97 HiltonWwde 21.07 21.68 -0.61 -2.81 -1.21 -5.4 -5.14
Altice 14.44 14.38 0.06 0.42 0.70 5.1 1.16 Generali 12.41 12.41 0.00 0.00 -0.70 -5.3 -3.50 Turkey 10/26 4.88 - Baa3 BBB- 101.32 4.77 0.00 0.30 2.95 £ Sterling
Lowes 78.90 76.07 2.83 3.72 3.77 5.0 2.05 Vale 15.13 15.13 0.00 0.00 -0.81 -5.1 -21.00 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Nppn Stl 2298.00 2271.50 26.50 1.17 104.50 4.8 -4.22 CK Hutchison 89.10 90.10 -1.00 -1.11 -4.75 -5.1 -10.27 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
RBS 223.70 214.50 9.20 4.29 10.00 4.7 -5.80 SBI NewA 179.95 179.95 0.00 0.00 -9.55 -5.0 -6.23 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.64 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ A3 BBB+ 121.63 2.06 0.00 0.00 0.72 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- 117.21 3.60 0.00 -0.10 1.78
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
May 18 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return May 18 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.25-0.50 0.00-0.25 Index change change change 1 month 1 year VIX 15.40 -0.17 15.57 53.29 10.88 May 18 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.50 3.50 Markit IBoxx VXD 14.96 -0.10 15.06 56.32 7.76 Tr 4pc '16 101.08 0.41 0.00 0.00 -2.38 -16.33 102.23 100.00 0.35
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 182.03 -0.28 -1.18 5.05 -1.56 1.79 VXN 17.09 -0.51 17.60 46.72 12.06 Tr 1.75pc '17 100.90 0.41 5.13 7.89 -6.82 -24.07 102.05 100.90 0.29
Euro Repo 0.00 10-09-2014 0.05 0.05 0.05 Corporates( £) 309.12 0.15 1.02 4.72 1.42 4.47 VDAX 19.15 0.41 18.74 32.55 16.71 Tr 5pc '18 108.45 0.29 20.83 20.83 -6.45 -63.29 111.74 108.45 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 262.25 -0.21 0.00 5.12 0.00 5.12 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.37 0.41 13.89 13.89 -2.38 -62.04 112.97 111.04 0.36
Japan O'night Call 0.00-0.00 05-10-2010 0.00 0.00-0.10 0.00-0.10 Corporates(€) 217.64 0.04 0.21 3.00 0.26 2.38 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.46 0.63 10.53 10.53 1.61 -51.91 117.12 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 232.17 0.18 0.76 3.05 -0.26 4.48 Tr 1.5pc '21 102.93 0.86 8.86 7.50 0.00 -42.67 138.06 99.91 0.26
Gilts( £) 303.48 0.31 1.85 5.79 0.69 7.32 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 117.50 0.90 8.43 7.14 -1.10 -44.10 119.14 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 249.57 -0.21 -0.23 4.72 0.57 -0.18 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 130.49 1.32 6.45 3.94 -2.94 -32.65 132.97 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 308.61 0.17 1.19 4.64 1.22 4.54 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 127.63 1.62 5.19 3.18 -1.82 -25.35 130.43 119.79 0.31
May 18 (Libor: May 17) night Day Week Month month month month year Overall ($) 234.18 -0.18 0.27 4.07 0.27 4.07 Australia 10/18 3.25 103.83 1.63 -0.03 0.03 -0.40 -0.56 Tr 4.25pc '32 130.93 1.99 3.65 2.05 -1.49 -17.43 134.41 121.93 0.35
US$ Libor 0.38600 0.001 0.001 0.003 0.43870 0.62510 0.91160 1.24235 Overall( £) 302.24 0.27 1.65 5.46 0.85 6.48 11/27 2.75 103.27 2.42 -0.01 0.02 -0.30 0.00 Tr 4.25pc '36 133.31 2.17 3.33 1.88 -1.36 -13.89 137.18 123.52 0.28
Euro Libor -0.39857 -0.003 -0.003 -0.001 -0.35271 -0.28100 -0.16200 -0.03443 Overall(€) 227.04 0.14 0.63 2.88 -0.08 3.71 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 144.27 2.27 3.18 1.79 -1.73 -12.02 148.39 132.20 0.26
£ Libor 0.48375 0.000 0.000 0.002 0.51350 0.58700 0.73188 0.99088 Treasuries ($) 224.71 -0.19 0.42 3.65 0.42 3.65 10/26 0.75 102.03 0.55 0.04 0.03 0.01 0.00 Tr 3.75pc '52 138.63 2.20 3.77 2.33 -1.79 -14.73 142.78 121.95 0.23
Swiss Fr Libor 0.000 -0.77300 -0.73500 -0.64820 -0.52400 FTSE Belgium 06/18 0.75 101.73 -0.10 0.00 0.00 0.00 0.00 Tr 4pc '60 152.45 2.14 3.38 2.39 -2.28 -16.08 157.42 131.72 0.22
Yen Libor 0.008 -0.04600 -0.02757 -0.00129 0.08921 Sterling Corporate (£) 112.34 -0.62 - - 0.60 -0.74 06/26 1.00 104.38 0.55 0.03 0.03 0.02 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.34800 -0.25700 -0.14300 -0.01100 Euro Corporate (€) 107.99 -0.15 - - -0.46 -0.70 Canada 05/18 0.25 99.27 0.63 0.05 0.08 -0.01 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 864.17 0.95 - - -6.30 -20.16 06/26 1.50 101.33 1.36 0.04 0.05 -0.07 0.00
US$ CDs
Euro CDs
0.000
0.000
0.43000
-0.37500
0.62500
-0.28500
0.87500
-0.18500
Eurozone Govt Bond 115.49 -0.36 - - -0.64 1.25 Denmark 11/18 0.25 101.68 -0.42 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 1.75 112.24 0.43 0.05 0.06 0.06 -0.35
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 99.94 1.03 0.00 0.07 0.01 -0.13
Fixed Coupon May 18 chg % Return 1 month 1 year Yield
May 18 term notice month month month year Markit iTraxx 04/26 0.50 100.46 0.45 0.05 0.03 -0.01 0.00
1 Up to 5 Years 98.31 -0.15 2399.55 0.06 2.27 0.59
Euro -0.45 -0.35 -0.45 -0.35 -0.45 -0.30 -0.36 -0.21 -0.26 -0.11 -0.08 0.07 Crossover 5Y 328.92 2.22 5.99 20.82 339.86 288.69 France 05/19 1.00 104.19 -0.38 0.00 0.00 0.00 0.00
2 5 - 10 Years 183.37 -0.45 3359.69 0.24 5.78 1.16
Sterling 0.45 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.93 1.08 Europe 5Y 77.99 -0.06 1.37 6.80 82.07 67.59 11/20 0.25 102.17 -0.23 0.00 0.00 0.00 0.00
3 10 - 15 Years 213.63 -0.73 3979.07 0.49 7.48 1.72
Swiss Franc - - - - - - - - - - - - Japan 5Y 70.92 -0.08 -1.84 -5.14 93.03 64.39 05/26 0.50 99.90 0.51 0.03 0.03 0.02 0.00
4 5 - 15 Years 190.63 -0.54 3509.50 0.32 6.21 1.40
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 99.36 0.41 3.80 12.52 102.83 80.36 05/45 3.25 141.40 1.48 0.04 0.04 0.05 -0.19
5 Over 15 Years 313.16 -1.34 4580.64 0.88 9.35 2.20
US Dollar 0.35 0.45 0.35 0.45 0.40 0.50 0.55 0.65 0.90 1.00 1.25 1.35 Germany 04/19 0.50 102.94 -0.51 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 177.15 -0.74 3355.20 0.46 6.14 1.92
Japanese Yen -0.05 0.15 -0.10 0.10 -0.35 -0.15 -0.35 -0.15 -0.20 0.00 -0.10 0.10 10/20 0.25 102.96 -0.41 0.00 0.00 0.00 0.00
Emerging Markets 5Y 294.70 4.20 5.89 23.45 311.29 271.25 02/26 0.50 103.18 0.17 0.04 0.04 0.01 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 451.93 5.72 10.11 28.96 463.51 415.17 08/46 2.50 142.68 0.89 0.05 0.05 0.04 -0.32
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked May 18 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 82.45 0.94 2.02 6.76 85.25 72.99 Greece 07/17 3.38 94.41 8.64 0.09 1.18 -3.04 -13.65
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 1 Up to 5 Years 309.26 -0.03 -0.17 -1.31 2384.12 -0.03 0.47
02/26 3.00 74.64 7.35 0.05 -0.04 -1.81 -3.33 2 Over 5 years 580.36 -0.39 -0.19 1.90 4297.67 -0.04 2.59
Ireland 10/17 5.50 108.32 -0.37 0.00 0.00 0.00 0.00 3 5-15 years 435.51 -0.20 -0.24 0.52 3329.03 0.00 1.58
05/26 1.00 101.54 0.84 0.04 -0.02 -0.01 0.00 4 Over 15 years 716.19 -0.46 -0.17 2.47 5200.24 -0.06 3.00
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 04/19 0.10 100.05 0.08 0.01 0.00 -0.03 0.00 5 All stocks 536.13 -0.34 -0.19 1.42 4024.46 -0.04 2.27
06/21 0.45 99.71 0.51 0.02 0.02 0.02 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/26 1.60 100.44 1.56 0.04 0.02 0.09 0.00 Yield Indices May 18 May 17 Yr ago May 18 May 17 Yr ago
Crude Oil† Jun 48.85 0.35 Corn♦ Jul 395.25 -2.50 May 17 May 17 Prev return stock Market stocks
03/47 2.70 100.81 2.68 0.02 -0.05 0.08 0.00 5 Yrs 0.78 0.71 1.34 20 Yrs 2.24 2.17 2.54
Brent Crude Oil‡ 49.64 0.17 Wheat♦ Jul 479.75 -2.25 Can 4.25%' 21 127.11 -0.562 -0.568 0.93 5.18 74108.53 7
Japan 05/18 0.10 100.68 -0.24 0.00 0.00 0.00 0.00 10 Yrs 1.54 1.47 2.04 45 Yrs 2.16 2.09 2.57
RBOB Gasoline† May 1.63 -0.01 Soybeans♦ Jul 1071.00 -9.50 Fr 2.25%' 20 114.77 -1.171 -1.161 0.26 20.31 227540.31 15
05/21 0.05 101.32 -0.21 0.00 0.00 0.00 0.00 15 Yrs 2.03 1.96 2.39
Heating Oil† May 1.47 0.03 Soybeans Meal♦ Jul 367.80 -1.00 Swe 0.25%' 22 111.71 -1.387 -1.377 0.94 29.90 242554.15 8
03/26 0.10 102.00 -0.10 0.00 0.00 0.00 0.00
Natural Gas† May 2.02 -0.04 Cocoa (ICE Liffe)X Jul 2146.00 14.00 UK 2.5%' 20 360.85 -1.575 -1.524 0.37 6.58 509298.74 27
03/46 0.80 111.86 0.36 0.00 0.05 0.06 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Jul 2910.00 5.00 UK 2.5%' 24 342.60 -1.038 -1.002 1.06 6.82 509298.74 27
Netherlands 01/19 1.25 104.59 -0.46 0.00 0.00 0.00 0.00 Real yield May 18 Dur yrs Previous Yr ago May 18 Dur yrs Previous Yr ago
Uranium† May 29.00 0.00 Coffee(Robusta)X May 1659.00 -11.00 UK 2%' 35 233.10 -0.840 -0.820 1.34 9.08 509298.74 27
07/25 0.25 99.94 0.26 0.03 0.04 0.02 -0.53 Up to 5 yrs -1.26 2.01 -1.27 -1.17 -1.95 2.02 -1.97 -1.73
Carbon Emissions‡ - - Coffee (Arabica)♥ Jul 131.40 -1.30 US 0.625%' 21 104.79 -0.296 -0.301 -0.04 35.84 1156867.82 37
White SugarX 477.60 -0.90 New Zealand 03/19 5.00 107.81 2.13 0.00 0.10 0.00 -1.02 Over 5 yrs -0.87 23.53 -0.89 -0.79 -0.91 23.63 -0.92 -0.81
Diesel† - - US 3.625%' 28 138.01 0.362 -0.301 0.24 16.78 1156867.82 37
Sugar 11♥ 16.68 -0.33 04/27 4.50 117.47 2.65 -0.02 0.05 -0.23 -1.10 5-15 yrs -0.89 9.29 -0.91 -0.85 -1.03 9.31 -1.05 -0.91
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 111.57 0.60 0.02 0.04 0.06 -0.42 Over 15 yrs -0.87 29.16 -0.88 -0.79 -0.89 29.21 -0.91 -0.80
Base Metals (♠ LME 3 Months) Cotton♥ Jul 62.27 -0.09 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
02/26 1.50 100.98 1.39 0.03 0.08 0.12 0.00 All stocks -0.87 20.53 -0.89 -0.80 -0.92 20.67 -0.94 -0.84
Aluminium 1548.50 5.50 Orange Juice♥ Jul 146.45 0.35 amount.
Aluminium Alloy 1540.00 -60.00 Palm Oil♣ - - Portugal 06/19 4.75 110.94 1.10 0.00 -0.02 -0.14 0.41 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4613.50 -26.50 Live Cattle♣ Jun 123.30 0.00 BONDS: TEN YEAR GOVT SPREADS 02/26 3.30 101.87 3.07 0.00 -0.12 -0.06 0.00
Spain 01/19 0.25 100.61 0.02 0.02 0.00 -0.07 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Lead 1709.50 -9.00 Feeder Cattle♣ May 149.55 0.63
Nickel 8665.00 -85.00 Lean Hogs♣ Jun 82.63 0.00 Spread Spread Spread Spread 04/26 1.95 103.27 1.59 0.03 0.00 0.06 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 16825.00 -155.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.89 1.05 0.00 0.06 0.00 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1886.50 -13.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 117.22 0.53 0.03 0.04 0.02 -0.22 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) May 17 Month Year Australia 2.42 2.25 0.60 Italy 1.56 1.39 -0.26 Switzerland 05/19 3.00 111.78 -0.89 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1277.00 -8.75 S&P GSCI Spt 371.69 10.56 -17.53 Austria 0.55 0.38 -1.27 Japan -0.10 -0.27 -1.92 05/26 1.25 116.02 -0.32 0.00 0.00 0.00 0.00
Silver (US cents) 1708.00 -24.00 DJ UBS Spot 85.58 6.42 -18.78 Belgium 0.55 0.38 -1.27 Netherlands 0.26 0.09 -1.56 United Kingdom 07/18 1.25 101.77 0.43 0.05 0.05 -0.05 -0.53 Data provided by Morningstar | www.morningstar.co.uk
Platinum 1042.00 -16.00 R/J CRB TR 186.60 7.05 -19.58 Canada 1.36 1.19 -0.46 Norway 1.39 1.22 -0.43 01/21 1.50 102.92 0.86 0.06 0.06 -0.01 0.00
Palladium 582.00 -9.00 Rogers RICIX TR 2214.69 - - Denmark 0.43 0.26 -1.39 Portugal 3.07 2.90 1.26 07/26 1.50 99.34 1.57 0.07 0.04 -0.05 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.45 0.28 -1.37 Spain 1.59 1.42 -0.23 12/46 4.25 143.04 2.28 0.07 0.05 -0.01 -0.29
Iron Ore (Platts) 57.00 -0.45 UBS Bberg CMCI TR 13.26 7.30 -19.05 France 0.51 0.34 -1.31 Switzerland -0.32 -0.49 -2.14 United States 04/18 0.75 99.80 0.86 0.01 0.12 0.00 0.00
Iron Ore (The Steel Index) 55.90 0.20 LEBA EUA Carbon 5.01 -0.99 -26.32 Germany 0.17 0.00 -1.65 United Kingdom 1.57 1.40 -0.25 04/21 1.38 100.20 1.33 0.03 0.13 0.00 0.00
GlobalCOAL RB Index 54.75 0.00 LEBA CER Carbon 0.40 5.26 -11.11 Greece 7.35 7.18 5.53 United States 1.82 1.65 0.00 05/26 1.63 98.25 1.82 0.05 0.10 0.00 0.00
Baltic Dry Index 642.00 -1.00 LEBA UK Power 1395.00 -43.52 -55.99 Ireland 0.84 0.67 -0.98 05/46 2.50 96.98 2.65 0.05 0.00 0.00 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 FINANCIAL TIMES Thursday 19 May 2016

MANAGED FUNDS SERVICE

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

Invesco Euro Corporate Bond Fund (A) € 17.22 - 0.00 0.00 Kames Global Equity Income B GBP Inc 1138.91 - -14.46 - Global Energy & Resources Fund $ 31.84 - 2.42 -

ACPI Global UCITS Funds Plc (IRL) Atlantis Investment Management Ltd (IRL) ENISO Partners AG Generali Worldwide Invesco Euro Inflation Linked Bond A € 15.72 - -0.01 0.00 Strategic Global Bond A GBP Inc 1105.06 - 1.56 0.37
www.acpishard.com 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Clairdenstrasse 34, Postfach CH-8022 Zurich PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
Regulated www.atlantis-investmenet.com, Tel: 0207 877 3377 Tel: +41 (0)44 286 17 17 International Insurances Invesco Euro Reserve A € 322.40 - -0.01 0.00 Strategic Global Bond B GBP Inc 627.15 - 0.90 0.87 Mirabaud Asset Management (LUX)
Regulated www.eniso-partners.com www.mirabaud.com, marketing@mirabaud.com
ACPI Emerging Mkts FI UCITS Fund USD A $ 114.52 - 0.11 0.00 Global Multi-Strategy Managed $ 4.73 5.10 0.02 0.00
Other International Funds Invesco Euro Bond A € 7.20 - 0.00 0.00 Regulated
Atlantis China Fund $ 6.44 - 0.00 0.00
ACPI Global Credit UCITS Funds USD A $ 14.29 - 0.01 0.00 ENISO Forte CH SMI Expanded SFr 144.95 - 0.10 0.00 UK Multi-Strategy Managed £ 4.79 5.16 0.02 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) Mir. - Conv. Bds Eur A EUR € 132.48 - -0.14 0.00
Invesco European Growth Equity A € 23.34 - -0.04 0.00
Atlantis China Healthcare Fund $ 1.84 - -0.04 0.00 Crèdit Andorrà Asset Management (LUX) PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
ACPI Global Fixed Income UCITS Fund USD A $ 155.88 - 0.07 0.00 ENISO Forte E € 110.87 115.30 -0.65 - EU Multi-Strategy Managed € 2.89 3.12 0.02 0.00 Mir. - Conv. Bds Glb A USD $ 110.90 - -0.11 0.00
www.creditandorra.com Invesco Global Absolute Return Fund A Class € 11.28 - -0.02 0.00 Other International Funds
Atlantis Japan Opportunities Fund $ 2.91 - -0.06 0.00 FCA Recognised
Q ACPI India Fixed Income UCITS Fund USD A $ 10.25 - 0.00 0.00 ENISO Forte G (CHF) SFr 131.89 - 0.69 0.53 Global Bond USD $ 3.54 3.81 0.00 0.00 Lloydstrust Gilt £ 12.5000xd - 0.0100 2.20 Mir. - Eq Asia ex Jap A $ 159.56 - -2.12 0.00
Invesco Global Bond A Inc $ 5.53 - 0.00 0.59
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00
ACPI India Fixed Income UCITS Fund USD A3 $ 87.35 - -0.01 0.00 Lloyds Investment Funds Limited Mir.- EqEurope ExUK Sm&Mid £ 109.40 - -0.48 -
ENISO Forte G (CHF) € 118.88 - 0.23 0.83
Invesco Global Conservative Fund 90 (EUR) A € 11.74 - -0.01 0.00
Crediinvest SICAV Money Market Usd A $ 10.06 - 0.00 0.00 Euro High Income € 1.6320xd - 0.0010 2.92
ACPI International Bond UCITS Fund USD A $ 18.53 - 0.01 0.00 ENISO Systematic Risk Class 1 € 95.32 - -0.18 - Genesis Asset Managers LLP Mir. - Eq Glb Emrg Mkt A USD $ 84.28 - -0.80 0.00
Invesco Global Equity Income Fund A $ 56.98 - -0.46 0.00
BLME Asset Management (LUX) Crediinvest SICAV Fixed Income Eur € 10.71 - 0.01 0.00 Other International Funds European £ 7.5970 - -0.0560 1.19
BLME Sharia'a Umbrella Fund SICAV SIF Mir. - Eq Global Focus A USD $ 94.85 - -0.08 0.00
Emerging Mkts NAV £ 5.54 - 0.00 0.00 Invesco Global Inc Real Estate Sec A dist $ 9.41 - -0.08 2.23
Regulated Crediinvest SICAV Fixed Income Usd $ 10.70 - 0.00 0.00 High Income £ 0.8670xd - 0.0009 4.92
ACPI Select UCITS Funds PLC (IRL) Ennismore Smaller Cos Plc (IRL) Mir. - EqPanEuropeSm&Mid € 111.59 - 0.21 0.00
Regulated Income Fund - Share Class A Acc $ 1141.38 - -0.22 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 Invesco Global Inv Grd Corp Bond A Dist $ 11.84 - 0.00 3.12
Crediinvest SICAV Spanish Value € 244.30 - -0.44 0.00 International £ 4.1370 - -0.0220 0.67
ACPI Balanced UCITS Fund USD Retail $ 14.08 - 0.04 0.00 FCA Recognised Mir. - Eq Spain A € 24.09 - 0.02 0.00
Income Fund - Share Class G Acc £ 1082.49 - -0.20 0.00 HPB Assurance Ltd Invesco Global Leisure A $ 35.86 - -0.39 0.00
Crediinvest SICAV International Value € 226.81 - 0.56 0.00 Ennismore European Smlr Cos NAV £ 108.35 - -0.15 0.00 North American £ 16.3300 - -0.0500 0.07
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Mir. - Eq Swiss Sm/Mid A SFr 338.15 - 1.90 0.00
ACPI Balanced UCITS Fund EUR Retail € 10.57 - 0.03 0.00 Gl Sukuk Fund - Share Class A Acc $ 1253.60 - 1.08 0.00 Invesco Global Smaller Comp Eq Fd A $ 57.61 - -0.32 0.00
Crediinvest SICAV Big Cap Value € 15.06 - 0.02 0.00 International Insurances
Ennismore European Smlr Cos NAV € 138.28 - 0.37 0.00 Sterling Bond £ 1.4820xd - 0.0010 3.62
ACPI Balanced UCITS Fund GBP Retail £ 10.72 - 0.03 0.00 Mir. - Glb High Yield Bds A $ 110.24 - 0.19 -
Gl Sukuk Fund - Share class B Acc £ 1119.02 1119.02 0.95 0.00 Holiday Property Bond Ser 1 £ 0.52 - 0.01 0.00 Invesco Global Structured Equity A $ 44.42 - -0.34 1.18
Crediinvest SICAV US American Value $ 17.85 - -0.21 0.00 UK £ 6.4260 - -0.0640 1.57
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Mir. - Glb Eq High Income A USD $ 96.32 - -0.32 0.00
Holiday Property Bond Ser 2 £ 0.61 - 0.01 0.00 Invesco Global Total Ret.(EUR) Bond Fund A € 13.19 - 0.02 0.00
Crediinvest SICAV Sustainability € 14.79 - 0.02 0.00 Ennismore European Smlr Cos Hedge Fd Lloyds Gilt Fund Limited
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Mir. - Glb Inv Grade Bds A € 102.93 - 0.06 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Other International Funds Invesco Gold & Precious Metals A $ 5.96 - 0.07 0.00 Lloyds Gilt Fund Quarterly Share £ 1.3040 - 0.0010 1.72
Regulated
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - NAV € 499.86 - 1.18 0.00 Haussmann Mir. - Glb Strat. Bd A USD $ 106.89 - 0.10 0.00
Invesco Greater China Equity A $ 42.92 - -0.68 0.00 Monthly Share £ 1.2540xd - 0.0010 1.72
Global Liquidity USD $ 1.00 - 0.00 0.61 DAVIS Funds SICAV (LUX)
Other International Funds
ACPI Horizon UCITS Fund $ 12.59 - 0.01 0.00 Regulated Lloyds Money Fund Limited Mir. - US Shrt Term Credit Fd $ 101.20 - -0.02 -
Invesco India Equity A $ 51.63 - -0.14 0.00
Haussmann Cls A $ 2534.40 - 13.05 0.00
Davis Value A $ 39.29 - 0.12 0.00
Equinox Fund Mgmt (Guernsey) Limited (GSY) Sterling Class £ 52.6390 - 0.0010 0.07
Barclays Investment Funds (CI) Ltd (JER) Invesco Japanese Equity Adv Fd A ¥ 3518.00 - 3.00 0.00
Regulated Haussmann Cls C € 2204.48 - 10.20 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Davis Global A $ 28.29 - 0.25 0.00 Lloyds Multi Strategy Fund Limited MW Japan Fund Plc (IRL)
Equinox Russian Opportunities Fund Limited $ 116.66 - 5.99 0.00 Invesco Japanese Value Eq Fd A ¥ 1148.00 - 1.00 0.00 FCA Recognised
FCA Recognised Haussmann Cls D SFr 1163.21 - 5.36 0.00 Conservative Strategy £ 1.1240 - 0.0000 1.97
Bond Funds Invesco Latin American Equity A $ 6.19 - -0.03 0.00 MW Japan Fund PLC A $ 24.35 - 0.10 0.00
Growth Strategy £ 1.5040 - 0.0000 1.32
Sterling Bond F £ 0.46 - 0.00 3.24
Euronova Asset Management UK LLP (CYM) Invesco Nippon Small/Mid Cap Equity A ¥ 1152.00 - -2.00 0.00 MW Japan Fund PLC B $ 24.50 - 0.11 0.00
Regulated
Heartwood Wealth Management Limited (IRL)
Aggressive Strategy £ 1.8180 - -0.0050 0.00
Regulated
Invesco Pan European Equity A EUR Cap NAV € 16.89 - -0.06 0.00 MW Japan Fund PLC C $ 85.00 - 0.32 0.00
Smaller Cos Cls One Shares € 34.64 - -0.05 0.00
Algebris Investments (IRL) Barings (Luxembourg) (LUX) Heartwood Caut Multi Asset B Acc 139.28 - -0.01 0.00 Global USD Growth Strategy $ 1.3570 - -0.0020 0.00
Regulated FCA Recognised Invesco Pan European High Income Fd A € 13.62 - 0.00 2.61
Smaller Cos Cls Two Shares € 24.21 - -0.03 0.00 Dealing Daily
Algebris Financial Credit Fund - Class I EUR € 132.92 - 0.48 0.00 Russia A GBP Inc F £ 29.51 - 0.29 0.00 Morant Wright Funds (Ireland) PLC (IRL)
Dodge & Cox Worldwide Funds (IRL) Smaller Cos Cls Three Shares € 12.08 - -0.02 0.00 Invesco Pan European Small Cap Equity A € 20.72 - 0.05 0.00
FCA Recognised
Algebris Financial Income Fund - Class I EUR € 110.23 - -0.15 0.00 6 Duke Street,St.James,London SW1Y 6BN
Invesco Pan European Structured Equity A € 16.51 - -0.08 0.00
M & G (Guernsey) Ltd (GSY)
www.dodgeandcox.worldwide.com 020 3713 7664 Smaller Cos Cls Four Shares € 15.64 - -0.02 0.00 Morant Wright Fuji Yield EUR Dist Hedged € 9.54 - 0.03 2.70
Regulated
Algebris Financial Equity Fund - Class B EUR € 88.41 - 0.59 - BlackRock (JER) FCA Recognised
Invesco UK Eqty Income A £ 30.70 - -0.18 0.00 The M&G Offshore Fund Range Morant Wright Fuji Yield GBP Acc Hedged £ 10.01 - 0.02 0.00
Regulated Dodge & Cox Worldwide Funds plc - Global Bond Fund
Algebris Asset Allocation Fund - Class B EUR € 95.90 - 0.39 - Corporate Bond 1333.63 1374.87 0.33 3.04
BlackRock UK Property £ 41.78 - 0.02 3.07 EUR Accumulating Class € 11.74 - 0.00 0.00 Invesco UK Investment Grade Bond A £ 1.01 - 0.00 2.67 Morant Wright Fuji Yield GBP Dist Hedged £ 9.21 - 0.03 6.76
Global Basics 2450.12 2525.90 -17.52 0.26
Blackrock UK Long Lease £ 1079.11 - 2.93 0.00 EUR Accumulating Class (H) € 9.46 - 0.00 0.00 Hermes Investment Funds Plc (IRL) Invesco US Structured Equity A $ 21.50 - -0.24 0.00 Morant Wright Fuji Yield USD Acc Hedged $ 9.77 - 0.03 0.00
Amundi Funds (LUX) Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Global Leaders 3327.36 3466.00 -24.83 1.12
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 BLK Intl Gold & General $ 6.55 6.90 0.09 0.00 EUR Distributing Class € 11.01 - 0.01 4.04 FCA Recognised Invesco US Value Eq Fd A $ 30.02 - -0.13 0.00 Morant Wright Fuji Yield USD Dist Hedged $ 9.66 - 0.02 2.66
www.amundi-funds.com Hermes Abs Return Credit Fund Class F Acc £ £ 1.06 1.06 -0.01 - Global High Yield Bond 962.87 992.65 0.79 4.29
FCA Recognised EUR Distributing Class (H) € 8.86 - 0.00 3.93 Invesco USD Reserve A $ 87.05 - 0.00 0.00 Morant Wright Fuji Yield YEN Acc ¥ 1015.02 - 2.71 0.00

BONHOTE Eurobank Fund Management Company (Luxembourg) S.A. Hermes Abs Return Credit Fund Class R Acc € € 1.93 1.93 0.00 - Global Macro Bond Fund 11902.34 12270.45 -14.97 1.99
Bd. Euro Corporate AE Class - R - EUR € 18.80 - -0.01 0.00 GBP Distributing Class £ 10.48 - -0.05 3.81 Morant Wright Fuji Yield B YEN Acc ¥ 896.40 - 2.39 0.00
Regulated
Other International Funds
Hermes Active UK Inflation Fund Class F Acc £ 1.31 1.31 0.01 0.00 Invesco Global Asset Management Ltd (IRL) North American Dividend Fund 164.64 171.50 -0.90 2.16
Bd. Global AU Class - R - USD $ 26.73 - 0.08 0.00 GBP Distributing Class (H) £ 8.97 - 0.00 3.95 (LF) Absolute Return € 1.31 - 0.00 0.00 Morant Wright Fuji Yield YEN Dist ¥ 979.16 - 2.62 2.69
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6477.00 - 45.00 2.34 Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.60 1.60 0.00 0.00 Optimal Income Fund 141.31 145.68 -0.09 2.56
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 USD Accumulating Class $ 9.58 - 0.00 0.00 (LF) Eq Emerging Europe € 0.74 - 0.00 0.00 FCA Recognised Morant Wright Sakura Fund Sterling Acc Hedged £ 12.10 - 0.03 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9632.00 - 179.00 0.94
Dodge & Cox Worldwide Funds plc-Global Stock Fund Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.24 3.24 -0.01 0.00 Invesco Stlg Bd A QD F £ 2.63 - 0.01 3.39 Recovery Fund Limited 'A' Participating Shares 9717.65 10122.55 -26.52 0.52
Eq. Emerging World AU Class - R - USD $ 80.40 - 0.78 0.00 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Morant Wright Sakura Fund Euro Acc Hedged € 12.11 - 0.04 0.00
USD Accumulating Share Class $ 15.21 - -0.05 0.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.17 1.17 -0.01 0.00 Invesco Asian Equity A $ 5.98 - -0.04 0.00 Recovery Fund Limited 'I' Participating Shares 9732.52 9830.83 -25.74 1.34
Eq. Greater China AU Class - R - USD $ 516.60 - 9.50 0.00 (LF) Eq Mena Fund € 12.42 - -0.02 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1246.33 - 3.74 0.00
Braemar Group PCC Limited (GSY)
Regulated GBP Accumulating Share Class £ 17.30 - -0.14 0.00 Hermes Global Emerging Markets Fund Class R Acc € 2.78 2.78 -0.01 0.00 Invesco ASEAN Equity A $ 92.38 - -0.77 0.27 Strategic Corporate Bond Fund 134.65 140.26 0.02 2.87
Eq. Latin America AU Class - R - USD $ 339.82 - -1.08 0.00 (LF) Greek Government Bond € 19.93 - 0.14 - Morant Wright Sakura Fund Dollar Acc Hedged $ 12.06 - 0.04 0.00
UK Agricultural Class A £ 1.24 - 0.01 0.00
GBP Distributing Share class £ 12.55 - -0.11 0.86 Hermes Global Equity Fund Class F Acc £ 1.55 1.55 -0.01 0.00 Invesco Bond A $ 27.88 - -0.02 1.89 UK Select 1434.36 1494.12 -5.84 1.17
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.57 - -0.01 0.00 (LF) Greek Corporate Bond € 12.46 - 0.09 - Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.97 - 0.04 0.00
UK Agricultural Class B £ 1.36 - 0.01 0.00
Asset Management
EUR Accumulating Share Class € 20.18 - -0.07 0.00 Hermes Global Equity Fund Class R Acc € 3.81 3.81 -0.02 0.00 Invesco Continental Eurp Small Cap Eqty A $ 200.13 - -1.30 0.00
(LF) FOF Dynamic Fixed Inc € 11.69 - 0.05 0.00

The Antares European Fund Limited

Student Accom Class B £ 0.55 - -0.17 0.00 Dodge & Cox Worldwide Funds plc-International Stock Fund
(LF) FOF Real Estate € 16.61 - -0.01 0.00 Hermes Global ESG Equity Fund Class F Acc £ 1.18 1.18 -0.01 0.00 Asset Management
Invesco Emerging Markets Equity A $ 34.73 - -0.16 0.00 MFS Investment Funds
FCA Recognised
(LUX) Asset Management
Other International USD Accumulating Share Class $ 12.60 - -0.05 0.00
Hermes Global High Yield Bond Fund Class F Acc £ 1.17 1.17 0.00 0.00 Invesco Emerging Markets Bond A $ 21.47 - 0.01 4.43
Blend.Research Gb.Eq.Fd. € 97.50 - -0.20 0.00
AEF Ltd Usd (Est) $ 604.11 - 13.92 - CG Asset Management Limited (IRL) EUR Accumulating Share Class € 13.11 - -0.04 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland FIL Investment Services (UK) Limited (1200)F (UK) Hermes Global High Yield Bond Fund Class R Acc € 2.83 2.83 0.01 0.00 Invesco Continental European Equity A € 7.81 - -0.01 1.19 Blend.Research Gb.Eq.Fd. £ 102.64 - -0.72 0.00
AEF Ltd Eur (Est) € 606.14 - 14.45 0.00 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund 130, Tonbridge Rd, Tonbridge TN11 9DZ
00 353 1 434 5098
Callfree: Private Clients 0800 414161 Hermes Global Small Cap Fund Class F Acc £ £ 1.05 1.05 -0.01 - Invesco Gilt A £ 15.53 - -0.01 1.32 Blend.Research Gb.Eq.Fd. $ 97.57 - 0.12 0.00
FCA Recognised USD Accumulating Share Class $ 17.63 - -0.08 0.00
Broker Dealings: 0800 414 181 Morgan Stanley Investment Funds (LUX)
Capital Gearing Portfolio Fund Plc £ 27708.71 27708.71 57.36 0.60 Hermes Global Small Cap Fund Class R Acc € € 1.92 1.92 -0.01 - Invesco Global Small Cap Equity A NAV $ 117.33 - -0.81 0.00 Blend.Research U.S.Core Eq.Fd. € 100.02 - -0.40 -
Arisaig Partners GBP Accumulating Share Class £ 18.97 - -0.16 0.00 OEIC Funds 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Other International Funds CG Portfolio Fund Plc Invesco Global High Income A NAV $ 12.29 - 0.02 5.78 www.morganstanleyinvestmentfunds.com
Target 2020 A-ACC-GBP £ 0.57 - 0.00 0.52 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.99 0.99 0.00 0.00 Blend.Research U.S.Core Eq.Fd. £ 100.35 - -0.89 -
GBP Distributing Share Class £ 12.03 - -0.11 0.65 FCA Recognised
Arisaig Africa Consumer Fund Limited $ 13.40 - 0.01 0.00 Real Return Cls A £ 181.94 181.94 1.21 1.64
Target 2025 A-ACC-GBP £ 1.32 - 0.00 0.32 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.05 1.05 0.00 0.00 Invesco Gbl R/Est Secs A GBP F F £ 8.33 - -0.12 0.92 Blend.Research U.S.Core Eq.Fd. ¥ 9218.00 - -19.00 0.00
EUR Accumulating Share Class € 20.21 - -0.08 0.00 US Advantage A F $ 56.41 - -0.55 0.00
Arisaig Asia Consumer Fund Limited $ 63.47 - 0.04 0.00 Dollar Fund Cls D £ 139.64 139.64 -0.59 1.55
Target 2030 A-ACC-GBP £ 1.41 - -0.01 0.40 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.30 1.30 -0.01 0.00 Invesco Global Health Care A $ 113.81 - -0.84 0.00 Blend.Research U.S.Core Eq.Fd. $ 100.19 - -0.07 - Asian Equity A F $ 38.69 - -0.35 0.00
Arisaig Global Emerging Markets Consumer UCITS € 11.54 - -0.06 0.00 Capital Value Fund Cls V £ 134.55 134.55 0.28 0.26
Institutional OEIC Funds Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.26 1.26 -0.01 1.30 Invesco Global Select Equity A $ 12.19 - -0.07 0.07 Em.Mk.Eq.Fund Euro € 105.52 - 0.21 0.00 Asian Property A F $ 17.72 - -0.10 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.53 - -0.10 0.00 Europe (ex-UK) Fund ACC-GBP £ 3.96 - -0.04 1.58
Hermes Sourcecap EU Alpha Fund Class R Acc € 2.94 2.94 -0.01 0.00 Invesco Jap Eqty Core A $ 1.78 - 0.01 0.09 Em.Mk.Eq.Fund Sterling £ 97.23 - -0.28 0.00 Diversified Alpha Plus A F € 28.73 - 0.13 0.00
Cedar Rock Capital Limited (IRL)
Arisaig Latin America Consumer Fund $ 22.44 - -0.08 0.00 Reduced Duration UK Corp Bond Gross £ 10.68 - 0.00 3.48
Regulated Hermes Sourcecap EX UK Fund Class F Acc £ 1.38 1.38 -0.01 0.00 Invesco Japanese Equity A $ 18.64 - 0.03 0.00 Em.Mk.Eq.Fd.US Dollar $ 91.36 - 0.48 0.00 Emerg Europ, Mid-East & Africa Eq A F € 63.64 - -0.17 0.00
Cedar Rock Capital Fd Plc $ 380.12 - 0.77 0.00 Reduced Duration UK Corp Bond Inc £ 9.70 - 0.00 3.48
Hermes Sourcecap EX UK Fund Class R Acc € 3.03 3.03 -0.01 0.00 Invesco Korean Equity A $ 30.62 - -0.74 0.00 Gb.Conc.Eq.Fd.Euro € 277.80 - -0.57 0.00 Emerging Markets Debt A F $ 80.00 - 0.29 0.00
Artisan Partners Global Funds PLC (IRL) Cedar Rock Capital Fd Plc £ 415.93 - 9.35 0.00 Dragon Capital Group Reduced Dur UK Corp Bond Gross Inc £ 9.71 - 0.00 3.48
Hermes UK Small & Mid Cap Fund Class F Acc £ 1.52 1.52 0.03 0.00 Invesco PRC Equity A $ 46.97 - -0.87 0.00 Gb.Conc.Eq.Fd.Sterl.UK T £ 182.06 - -1.26 0.00
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Emerging Markets Domestic Debt AX F £ 10.99 - -0.19 4.10
Tel: 44 (0) 207 766 7130 Cedar Rock Capital Fd Plc € 350.24 - 5.44 0.00 Fund information, dealing and administration: funds@dragoncapital.com UK Gilt Fund Inc £ 1.32 - 0.00 1.98
Hermes UK Small & Mid Cap Fund Class R Acc € 4.30 4.30 0.08 0.00 Invesco Pacific Equity A $ 46.25 - 0.00 0.07 Gb.Conc.Eq.Fd.Sterling £ 275.62 - -1.93 0.00
FCA Recognised Emerging Markets Equity A F $ 32.62 - -0.26 0.00
Other International Funds
Artisan Partners Global Funds plc UK Long Corporate Bond - Gross Inc £ 11.31 - 0.00 4.22
Hermes US All Cap Equity Class F Stg £ Acc £ 1.04 1.04 -0.01 - Invesco Global Technology A $ 14.45 - -0.15 0.00 Gb.Conc.Eq.Fd.US $ 199.39 - 0.25 0.00
Vietnam Property Fund (VPF) NAV $ 0.91 - -0.01 0.00 Euro Bond A F € 16.08 - -0.03 0.00
Artisan Global Equity Fund Class I USD Acc $ 13.99 - -0.17 0.00 Charles Schwab Worldwide Funds Plc (IRL)
Hermes US All Cap Equity Class R € Acc € 1.91 1.91 -0.01 - Invesco UK Eqty A £ 7.57 - -0.03 1.51 Gb.Eq.Hdg Fd.Euro IRE T € 182.31 - -0.32 0.00
Regulated Vietnam Enterprise Inv. (VEIL) NAV $ 3.85 - 0.02 0.00 Euro Corporate Bond AX F £ 23.28 - -0.39 1.44
Artisan Global Opportunities I USD Acc $ 12.33 - -0.04 0.00 Findlay Park Funds Plc (IRL)
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Hermes US SMID Equity Fund Class F Acc £ 1.74 1.74 -0.02 0.00 Gb.Eq.Euro Hdg Fd. € 258.34 - -0.46 0.00 Euro Strategic Bond A F € 44.29 - 0.01 0.00
Artisan Global Value Fund Class I USD Acc $ 15.83 - -0.06 0.00 FCA Recognised Invest AD
DSM Capital Partners Funds (LUX) Hermes US SMID Equity Fund Class R Acc € 3.49 3.49 -0.03 0.00 Gb.Eq.Fund Euro € 277.82 - -0.78 0.00 European Currencies High Yield Bd A F € 21.99 - 0.00 0.00
American Fund USD Class $ 82.58 - -0.80 0.00 Client services: +971 2 692 6101 clientservices@InvestAD.com
Artisan US Value Equity Fund Class I USD Acc $ 11.46 - -0.01 0.00 www.dsmsicav.com
Chartered Asset Management Pte Ltd Other International Funds
Regulated Gb.Eq. Fd Euro IRE T € 175.77 - -0.49 0.00 European Equity Alpha A F € 40.22 - 0.18 0.00
Other International Funds American Fund GBP Hedged £ 44.92 - -0.44 0.00
Artisan Global Opportunities Class I EUR Acc € 16.38 - -0.05 0.00 Invest AD - Emerging Africa Fund $ 952.51 - -4.28 0.00
Global Growth I2 Acc € 127.40 - 0.37 0.00 INDIA VALUE INVESTMENTS LIMITED (INVIL)
CAM-GTF Limited $ 291713.41 291713.41 7812.53 0.00 Gb.Eq.Fd.Sterling UK T £ 220.20 - -1.69 0.00 European Property A F € 34.55 - -0.13 0.00
American Fund GBP Unhedged £ 57.22 - -0.21 - www.invil.mu
Global Growth I1 Eur € 95.22 - 0.27 - Invest AD - GCC Focus Fund $ 1414.43 - -2.64 0.00
Other International Funds Gb.Eq.Fd.US Dollar $ 314.81 - 0.16 0.00 Eurozone Equity Alpha A F € 10.77 - 0.00 0.00
CAM GTi Limited $ 725.46 - 53.03 0.00 Latin American Fund USD Class $ 12.99 - -0.09 0.00
Ashmore Sicav (LUX)
NAV £ 8.18 - -0.02 0.00
2 rue Albert Borschette L-1246 Luxembourg Gb.Eq.Fund Sterling £ 217.75 - -1.69 0.00 Global Bond A F $ 39.94 - -0.30 0.00
Raffles-Asia Investment Company $ 1.61 1.61 0.00 5.34 Latin American Fund GBP Unhedged £ 9.13 - -0.01 -
FCA Recognised
Edinburgh Partners Limited (IRL)
27-31 Melville Street, Edinburgh EH3 7JF Gb.Val.Ex-Jap.Fd.USD $ 120.85 - 0.28 0.00 Global Brands A F $ 101.18 - -0.61 0.00
Ashmore SICAV Emerging Market Debt Fund $ 95.88 - 0.01 8.52
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Intercapital Asset Management Ltd (HRV)
Masarykova ul. 1, 10000, Zagreb, Croatia Gb.Val.Ex-Japan Fd.Yen ¥ 12946.00 - 11.00 0.00 Global Convertible Bond A F $ 40.87 - -0.06 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 142.48 - -0.74 1.18 FCA Recognised The First Investor QSCC
5th Floor, Barwa Bank Building, Grand Hamad Street www.icam.hr, Tel; +385 1 4825 868
Edinburgh Partners Opportunities Fund PLC Gb.Val.Fd. Euro € 132.27 - -0.26 0.00 Global Property A F $ 28.06 - -0.27 0.00
Ashmore SICAV Emerging Market Total Return Fund $ 83.06 - 0.02 6.00 , P.O. Box 16034, Doha, State of Qatar Other International Funds
Emerging Opportunities I USD $ $ 1.05 - 0.01 0.95 + 974 4459 6111
Capital One Bond Fund (Ex-YU) HRK 209.69 - 0.18 - GAM Gb.Val.Fd.Sterling £ 125.98 - -0.86 0.00 Indian Equity A F $ 34.79 - -0.04 0.00
Ashmore SICAV Global Small Cap Equity Fund $ 123.09 - 0.26 0.00 http://www.tfi.com.qa/
European Opportunities I EUR € 2.22 - 0.00 1.60 funds@gam.com, www.jbfundnet.com
Other International Funds Gb.Val.Fd.USD $ 107.87 - 0.15 0.00 Latin American Equity A F $ 41.26 - -0.31 0.00
EM Mkts Corp.Debt USD F $ 85.89 - 0.16 9.17 Capital Two Equity Fund (Ex-YU) HRK 92.22 - 0.17 - Regulated
Cheyne Capital Management (UK) LLP (IRL) European Opportunities I GBP £ 1.73 - -0.01 1.68 TFI GCC Equity Opportunities Fund (Q)QAR 1245.70 - 11.19 0.00
Regulated Ms EF Special Val. EUR/A € 136.57 - 0.42 1.12 Low Volatility Gb.Eq.Fd.Euro € 104.51 - -0.47 0.00 Short Maturity Euro Bond A F € 20.37 - 0.00 0.00
EM Mkts Loc.Ccy Bd USD F $ 80.67 - -0.13 2.93
European Opportunities I USD $ 2.53 - 0.01 1.67
Cheyne Convertibles Absolute Return Fund € 1329.78 - 2.50 0.00 Intrinsic Value Investors (IVI) LLP (IRL) Strategy Balanced-CHF/B SFr 147.42 - -0.03 0.00 Low Volatility Gb.Eq.Fd.Sterl £ 110.02 - -1.04 0.00 US Dollar Liquidity A F $ 13.03 - 0.00 0.00
European Opportunities A EUR € 2.18 - 0.00 1.03 Foord Asset Management 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Cheyne Global Credit Fund € 119.82 - 0.12 0.00 FCA Recognised Strategy Balanced-EUR € 151.92 - -0.18 0.00 Low Volatility Gb.Eq.Fd.USD $ 104.58 - -0.12 0.00 US Growth A F $ 64.02 - -0.40 0.00
Other International Funds
Global Opportunities I USD $ 1.52 - 0.01 1.25 IVI European Fund EUR € 17.80 - 0.02 0.00
Cheyne European Mid Cap Fund € 1124.18 - 10.66 0.00 Foord International Trust $ 34.18 - 0.21 0.00 Strategy Balanced-USD/B $ 128.69 - -0.05 0.00 Low Volatility Gb.Eq.Fd.Yen ¥ 8887.00 - -22.00 - US Growth AH F € 44.21 - -0.28 0.00
Global Opportunities I GBP £ 1.05 - 0.00 1.46 IVI European Fund GBP £ 18.80 - -0.04 0.62
Foord Global Equity Fund_Class B $ 12.14 - 0.03 0.00 Strategy Growth-CHF/B SFr 90.01 - 0.04 0.00 US Growth AX F £ 43.87 - -0.70 0.00

Cheyne Capital Management (UK) LLP Global Opportunities A GBP £ 0.99 - 0.00 0.87
Strategy Growth-EUR € 112.13 - -0.11 0.00 MMIP Investment Management Limited (GSY) US Property A F $ 71.07 - -0.98 0.00
Other International Funds Regulated
Aspect Capital Ltd (UK) Pan European Opportunities I EUR € 1.34 - 0.01 - Franklin Templeton International Services Sarl (IRL) Strategy Inc-CHF/B SFr 118.54 - -0.09 0.00 Multi-Manager Investment Programmes PCC Limited
Other International Funds Cheyne European Event Driven Fund € 130.50 - -5.05 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Other International Funds Strategy Inc-EUR/B € 158.48 - -0.24 0.00 UK Equity Fd Cl A Series 01 £ 2305.23 2333.13 -7.29 0.00 Morgens Waterfall Vintiadis.co Inc
Aspect Diversified USD $ 411.97 - -21.78 0.00 Cheyne Real Estate Credit Holdings Fund £ 165.48 - 1.10 0.00
Franklin Emerging Market Debt Opportunities Fund Plc Other International Funds
Strategy Inc-USD/B $ 147.01 - -0.19 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1537.77 - 18.17 -
Aspect Diversified EUR € 246.87 - -13.34 - Cheyne Real Estate Credit Holdings Fund III £ 109.03 - -3.86 0.00 Franklin Emg Mkts Debt Opp CHFSFr 16.87 - -0.17 9.07 Phaeton Intl (BVI) Ltd (Est) $ 367.38 - -0.71 0.00
Diversified Absolute Return Stlg Cell AF2 £ 1555.83 - 19.50 0.00
Aspect Diversified GBP £ 127.11 - -6.60 0.00 Cheyne Real Estate Debt Fund Class A1 £ 131.25 - 0.58 0.00 Franklin Emg Mkts Debt Opp EUR € 11.89 - -0.12 7.00 Invesco (LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Global Equity Fund A Lead Series £ 1047.03 1050.69 -1.09 -
Aspect Diversified CHF SFr 117.52 - -6.44 0.00 Cheyne Total Return Credit Fund - December 2017 Class $ 186.74 - 14.87 0.00 Franklin Emg Mkts Debt Opp GBP £ 10.15 - -0.13 6.99 FCA Recognised
Invesco Management SA
Aspect Diversified Trends USD $ 121.13 - -0.42 0.00 Cheyne Total Return Credit Fund 2020 $ 106.21 - 4.68 - EFG Hermes Franklin Emg Mkts Debt Opp SGD S$ 22.01 - -0.20 5.46
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Invesco Active Multi-Sector Credit Fund A € 2.93 - 0.00 0.00 Marlborough International Management Limited (GSY)
Aspect Diversified Trends EUR € 120.92 - -0.43 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com Franklin Emg Mkts Debt Opp USD $ 17.00 - -0.15 6.98 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Other International Funds Invesco Asia Balanced A dist $ 13.90 - -0.08 3.73 FCA Recognised
Aspect Diversified Trends GBP £ 126.17 - -0.43 0.00 Cohen & Steers SICAV (LUX)
Regulated The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Kames Capital VCIC (IRL) Marlborough North American Fund Ltd £ 34.02 36.25 0.06 0.00
Invesco Asia Consumer Demand Fund A income $ 11.90 - -0.18 0.25
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Natixis International Funds (Lux) I SICAV (LUX)
European Real Estate Securities € 23.3549 - 0.2816 1.81 Frontier Capital (Bermuda) Limited Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
EFG-Hermes Frontier Equity UCITS Fund Class I $ 1024.86 - 0.77 - FCA Recognised Marlborough Tiger Fund Ltd F £ 24.38 25.98 -0.19 0.00
Other International Invesco Asia Infrastructure (A) $ 12.30 - -0.08 0.77 FCA Recognised
Atlantas Sicav (LUX)
Europ.RealEstate Sec. IX € 31.3223 - 0.3777 0.00 Absolute Return Bond B GBP Acc 1089.24 - 0.20 1.58
Regulated EFG-Hermes MENA Equity UCITS Fund Class A $ 1007.81 - -18.80 - Commercial Property-GBP Class £ 71.42 - -0.53 - Harris Global Equity R/A (USD) $ 233.33 233.33 1.59 0.00
Invesco Asia Opportunities Equity A $ 101.09 - -1.61 0.00
American Dynamic $ 3437.38 - 13.63 0.00 Gbl Listed Infrastructure I $ 10.3708 - -0.0113 - Eq Market Neutral B Acc 1009.86 - -1.52 - Marwyn Asset Management Limited (CYM)
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 - Invesco Balanced Risk Allocation Fund A € 15.17 - -0.03 0.00 Harris US Equity Fund R/A (USD) $ 202.03 202.03 -0.16 0.00
Regulated
American One $ 3246.78 - 28.94 0.00 Gbl Listed Infrastructure IX $ 10.4158 - -0.0114 - Eq Market Neutral Plus B Acc 1005.00 - -3.67 -
Saudi Arabia Equity Fund SR 12.16 - 0.02 0.00 Invesco Emerging Europe Equity Fund A $ 8.43 - 0.01 0.00 Marwyn Value Investors £ 437.31 - -6.34 0.00 Harris Concentrated US Equity R/A (USD) $ 152.77 152.77 -0.42 0.00
Bond Global € 1393.10 - 4.13 0.00 Gbl RealEstate Sec. I $ 11.1456 - 0.0135 1.60 High Yield Global Bond A GBP Inc 514.99 - 0.45 3.84
GYS Investment Management Ltd (GSY) Loomis Sayles Strategic Alpha R/A (USD) $ 111.27 111.27 0.21 -
Invesco Emerging Local Currencies Debt A Inc $ 6.92 - -0.04 6.16
Regulated
Eurocroissance € 865.97 - 7.34 0.00 Gbl RealEstate Sec. IX $ 13.2708 - 0.0162 0.00 High Yield Global Bond B GBP Inc 1072.01 - 0.95 4.34
Taurus Emerging Fund Ltd $ 187.63 191.46 0.48 0.00 Invesco Emerging Mkt Quant.Eq. A $ 9.00 - -0.04 0.00 Meridian Fund Managers Ltd
Far East $ 661.04 - 8.73 0.00 Investment Grade Global Bd A GBP Inc 568.25 - -0.16 2.20 Other International Funds
Invesco Energy A $ 18.25 - 0.13 0.00
Global Gold & Resources Fund $ 211.06 - 12.16 -
Kames Global Equity Income B GBP Acc 1214.71 - -15.42 -
Thursday 19 May 2016 FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

Odey European Inc GBP A £ 237.93 - 17.53 0.00 Pictet-Europe Index-I EUR F € 158.21 - 0.11 0.00 UK Low Duration - Inst Acc £ 14.14 - 0.00 0.00 Renminbi Bond Fund YEN Cls A ¥ 20641.00 - 94.00 0.00 Eurobond (Dollar) Bonds and Bills FundTRY 0.079710 - 0.000000 -

Natixis International Funds (Dublin) I plc (IRL) Odey European Inc GBP B £ 135.03 - 9.95 0.00 Pictet-European Equity Selection-I EUR F € 582.65 - 0.39 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00 S W Mitchell Capital LLP (IRL) Renminbi Bond Fund EUR Cls A € 111.25 - 0.50 3.33 Unicapital Investments (LUX) Fourth Variable Fund TRY 0.021280 - - -
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Regulated Regulated
Regulated Odey European Inc USD $ 284.37 - 20.72 0.00 Pictet-European Sust Eq-I EUR F € 234.31 - 0.09 0.00 UK Sterling Long Average Duration - Inst Acc £ 23.38 - 0.10 0.00 Koc Affiliate and Eq. Fund (Eq. Intense Fund)TRY 0.763710 - 0.003470 -
SWMC European Fund B EUR € 13771.30 - 47.40 0.00 Investments III € 5.03 - -22.38 -
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.98 12.98 0.01 1.21
Giano Capital EUR Inc € 4413.43 - -216.41 0.00 Pictet-Global Bds Fundamental I USD $ 124.05 - 0.24 0.00 Unconstrained Bond - Inst Acc $ 12.02 - 0.01 0.00 SWMC UK Fund B £ 10843.40 - 24.30 0.00 Investments IV - European Private Eq. € 214.33 225.05 -33.42 - Istanbul Hedge Fund TRY 0.014400 - 0.000010 -
Loomis Sayles High Income R/D (USD) $ 7.99 7.99 0.02 11.36
Pictet-Global Bonds-I EUR € 171.06 - 0.05 0.00 US High Yield Bond Fund Inst Acc $ 28.45 - 0.05 0.00 SWMC Small Cap European Fund B EUR € 12600.06 - 8.39 0.00 Investments IV - Global Private Eq. € 321.82 337.91 -44.60 -
Loomis Sayles Multisector Income R/D (GBP) $ 12.06 12.06 -0.01 5.59 Odey Asset Management LLP (IRL) Pictet-Global Emerging Currencies-I USD F $ 99.70 - 0.15 0.00 SWMC Emerging European Fund B EUR € 9316.54 - 44.38 0.00
FCA Recognised

Odey Pan European EUR R € 297.99 - 1.05 0.00 Pictet-Global Emerging Debt-I USD F $ 376.23 - 0.09 0.00 Value Partners Hong Kong Limited (IRL)
E.I. Sturdza Strategic Management Limited (GSY) www.valuepartners.net, fis@vp.com.hk
Odey Absolute Return Focus Fund $ 90.30 - -2.89 - Pictet-Global Env.Opport-I EUR € 155.34 - -1.47 0.00 Regulated Regulated
Nippon Growth Fund Limited ¥ 83582.00 - 2597.00 0.00 Value Partners Asia ex-Japan Equity Fund $ 8.17 - 0.07 -
Odey Allegra European EUR O € 246.31 - -0.32 0.00 Pictet-Global Megatrend Selection-I USD F $ 218.04 - -1.74 0.00
Yuki International Limited (IRL)
Strat Evarich Japan Fd Ltd JPY ¥ 73292.00 - 372.00 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 9.98 - -0.09 0.00
Odey Allegra International EUR O € 157.55 - 0.57 0.00 Pictet-Greater China-I USD F $ 402.55 - -4.14 0.00 Tel +44-20-7269-0207 www.yukifunds.com
Platinum Capital Management Ltd Regulated
Strat Evarich Japan Fd Ltd USD $ 720.64 - 3.77 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 10.36 - -0.09 0.00
Pictet-Health-I USD $ 256.93 - -2.77 0.00 Other International Funds
New Capital Fund Management Ltd (IRL) Odey Allegra Developed Markets USD I $ 123.38 - 0.76 0.00 Yuki Mizuho Umbrella Fund
Leconfield House, Curzon Street, London, W1J 5JB Platinum All Star Fund - A (Est) $ 114.57 - - -
RobecoSAM (LUX)
Value Partners Classic Equity Fund EUR Hedged € 10.49 - -0.09 0.00
Pictet-High Dividend Sel I EUR F € 153.59 - -0.98 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6830.00 - -129.00 0.00
FCA Recognised Odey European Focus Fund € 16.84 - 0.01 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/
New Capital UCITS Funds Platinum Global Dividend Fund - A $ 49.22 - - - Regulated E.I. Sturdza Funds PLC (IRL)
Value Partners Classic Equity Fund GBP Hedged £ 10.76 - -0.09 0.00
Pictet-India Index I USD $ 94.48 - 0.39 0.00 Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Odey Giano European Fund EUR R € 116.21 - 0.33 0.00 Regulated
Asia Pac Bd USD Inst Inc $ 95.09 - -0.10 3.26 RobecoSAM Sm.Energy/A £ 11.22 - -0.08 1.65
Pictet-Indian Equities-I USD F $ 430.18 - -2.24 0.00 Platinum Maverick Enhanced Fund Limited (Est) $ 89.93 - - 0.00 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 903.82 - 12.39 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 11.74 - -0.04 0.00 Yuki Japan Low Price ¥ 26944.00 - 93.00 0.00
Odey Naver Fund EUR I € 113.55 - 0.37 0.00
Asia Pac Bd USD Ord Inc $ 96.96 - -0.10 2.57 RobecoSAM Sm.Energy/N € 10.88 - -0.02 0.00
Pictet-Japan Index-I JPY F ¥ 14139.51 - 29.52 0.00 Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1064.38 - 14.62 0.00 Value Partners Classic Equity USD Hedged $ 12.25 - -0.11 0.00 Yuki Japan Value Select ¥ 13697.00 - -22.00 0.00
Odey Odyssey USD I $ 128.77 - 0.21 0.00
Asia Pac Eq EUR Ord Inc € 84.01 - 0.90 3.13 RobecoSAM Sm.Materials/A £ 126.36 - -0.18 1.38
Pictet-Japanese Equities Opp-I JPY F ¥ 8439.59 - 7.27 0.00 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 84088.00 - 1155.00 0.00 Value Partners Greater China Equity Fund $ 7.58 - 0.09 - YMR Umbrella Fund
Odey Swan Fund EUR I € 70.88 - -0.24 0.00
Asia Pac Eq GBP Ord Inc £ 87.14 - 0.93 3.67 RobecoSAM Sm.Materials/N € 139.34 - 0.50 0.00 YMR N Growth ¥ 10931.83 - -2753.17 0.00
Pictet-Japanese Equity Selection-I JPY F ¥ 12345.83 - 40.48 0.00 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 70494.00 - 968.00 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.38 - 0.01 0.00

Asset Management
Odey European Absolute Return GBP S £ 89.02 - -0.25 0.00
RobecoSAM Sm.Materials/Na € 96.18 - 0.34 - Yuki Asia Umbrella Fund
Asia Pac Eq USD Ord Inc $ 88.21 - 0.95 3.12

Asia Pac Eq USD Inst Acc $ 95.14 - 1.02 0.00

Pictet-LATAM Index I USD $ 55.55 - -0.53 0.00
RobecoSAM Gl.Small Cap Eq/A £ 79.40 - -0.32 1.27
Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Asset Management
Value Partners Health Care Fund HKD Class A UnhedgedHK$

Value Partners Health Care Fund USD Class A Unhedged $

8.83

8.85
-

-
0.00 0.00

0.00 0.00
Yuki Japan Rebounding Growth Fund JPY Class ¥ 23727.00 - -192.00 0.00

Odey Wealth Management (CI) Ltd (IRL) Pictet-LATAM Lc Ccy Dbt-I USD F $ 119.16 - 0.03 0.00 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 45808.00 - 629.00 0.00
Polar Capital Funds Plc (IRL) Yuki Japan Rebounding Growth Fund USD Hedged Class $ 923.09 - -7.54 -
Asia Pac Eq USD Inst Inc $ 98.51 - 1.06 3.78 www.odey.com/prices RobecoSAM Gl.Small Cap Eq/N € 151.61 - 0.14 0.00
Pictet-Multi Asset Global Opportunities-I EUR € 115.38 - -0.11 0.00 Regulated Strategic China Panda Fund USD $ 1988.62 - 17.81 0.00
FCA Recognised
Dyn Europ Eq EUR Ord Inc € 167.68 - -0.20 0.71 Asian Financials I USD $ 278.54 278.54 -1.65 1.16 RobecoSAM Sustainable Gl.Eq/B € 171.41 - -0.22 0.00
Odey Opportunity EUR I € 209.56 - -0.06 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 336.24 - 4.49 0.00 Strategic China Panda Fund Hedged EURO € 1929.98 - 17.18 0.00 Veritas Asset Management LLP (IRL)
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland Zadig Gestion (Memnon Fund) (LUX)
Dyn Europ Eq GBP Ord Inc £ 178.02 - -0.21 1.07 Biotechnology I USD $ 15.24 15.24 -0.12 0.00 RobecoSAM Sustainable Gl.Eq/N € 148.37 - -0.18 0.00
Veritas Funds Plc FCA Recognised
Pictet-Premium Brands-I EUR F € 137.81 - -1.50 0.00 Strategic China Panda Fund Hedged Sterling £ 1958.87 - 17.41 0.00
RobecoSAM S.HealthyLiv/B € 171.44 - -1.06 0.00 www.veritas-asset.com Memnon European Fund I GBP £ 116.54 - -0.91 0.00
Dyn Europ Eq USD Ord Inc $ 167.44 - -0.19 0.71 Omnia Fund Ltd European Income Acc EUR € 10.83 10.83 -0.02 0.00
Pictet-Quality Global Equities I USD $ 136.89 - -1.11 0.00 Strategic Euro Bond Accumulating Class CHFSFr 984.83 - -0.65 0.00 +353 1 635 6799
Other International Funds RobecoSAM S.HealthyLiv/N € 160.26 - -0.99 0.00 FCA Recognised
China Equity EUR Ord Acc € 113.73 - 0.87 0.00 European Ex UK Inc EUR Acc € 9.39 9.39 -0.03 -
Pictet-Russia Index I USD $ 55.22 - -0.03 0.00 Strategic Euro Bond Institutional Class EUR € 1017.02 - -0.52 0.00 Institutional
Estimated NAV $ 845.76 - 23.33 0.00
China Equity GBP Ord Acc £ 118.67 - 0.91 0.00 Financial Opps I USD $ 11.05 - -0.01 1.94 RobecoSAM S.HealthyLiv/Na £ 109.54 - -1.21 -
Pictet-Russian Equities-I USD F $ 49.35 - -0.13 0.00 Strategic Euro Bond Fund Accumulating Class Shares € 1138.83 - -0.62 0.00 Veritas Asian Fund A USD H $ 315.59 - -2.91 0.43
Data Provided by
China Equity USD Ord Acc $ 116.08 - 0.89 0.00 GEM Growth I USD $ 8.30 - 0.05 0.00 RobecoSAM S.Water/A £ 182.70 - -0.60 1.14
Pictet-Security-I USD F $ 201.24 - -1.50 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1028.41 - -0.56 1.32 Veritas Asian Fund A GBP H £ 405.80 - -4.26 0.24

China Equity USD Inst Acc $ 119.76 - 0.93 0.00 GEM Income I USD $ 9.31 - 0.04 0.00 RobecoSAM S.Water/N € 168.34 - 0.28 0.00
Pictet-Select-Callisto I EUR € 103.19 - 0.27 0.00 Strategic European Smaller Companies Fund EUR Class € 969.60 - 15.12 - Veritas Asian Fund A EUR H € 319.42 - -1.86 0.22

Europ. Equity Fd EUR € 100.15 - -0.11 - Global Alpha I USD $ 12.72 12.72 0.02 0.00 Veritas China Fund A USD $ 122.78 - 0.58 0.40
Pictet-Small Cap Europe-I EUR F € 1086.31 - 6.92 0.00 Strategic Global Bond RMB Acc $ 1083.79 - -2.15 0.00
Europ. Equity Fd GBP £ 98.62 - -0.11 - Global Convertible I USD $ 11.28 11.28 0.00 0.00 Veritas China Fund A GBP £ 127.12 - 0.60 0.42
Pictet-ST.MoneyMkt-I € 140.36 - 0.00 0.00 Strategic Global Bond USD Acc $ 1065.50 - -3.07 0.00
Europ. Equity Fd USD $ 99.02 - -0.11 - Optima Fund Management Global Insurance I GBP £ 4.35 - -0.05 0.00
Other International Funds
Pictet-ST.MoneyMkt JPY I USD ¥ 101480.65 - -4.30 0.00 Strategic US Momentum and Value Fund $ 714.33 - -3.06 0.00 Veritas China Fund A EUR € 120.85 - 0.57 0.42
www.morningstar.co.uk
Global Val.Cr.Fd GBP Ord Inc £ 111.83 - -0.02 3.53 Global Technology I USD $ 22.33 - -0.18 0.00 Veritas Global Equity Income Fund D USD $ 116.91 - -0.92 4.02
Cuttyhunk Fund II Limited $ 1354.80 - -69.50 0.00 Pictet-ST.MoneyMkt-ICHF SFr 123.83 - 0.00 0.00 Strategic US Momentum & Value Fund USD I Class $ 475.60 - -2.03 0.00 Data as shown is for information purposes only. No
Global Val.Cr.Fd USD Inst Acc $ 126.12 - -0.01 0.00 Healthcare Blue Chip Fund I USD Acc $ 10.25 10.25 -0.09 0.00 offer is made by Morningstar or this publication.
Pictet-ST.MoneyMkt-IUSD $ 135.71 - 0.01 0.00 Schroder Property Managers (Jersey) Ltd Strategic US Momentum and Value EUR Hedged Class EUR € 497.00 - -2.16 0.00 Veritas Global Equity Income Fund D EUR € 201.35 - -0.73 4.11
JENOP Global Healthcare Fund Ltd $ 12.37 - -0.19 0.00
Global Val.Cr.Fd GBP Ord Acc £ 181.36 - -0.03 0.00 Healthcare Opps I USD $ 34.35 - -0.39 0.00 Other International Funds
Pictet-Timber-I USD F $ 143.92 - -1.58 0.00 Strategic US Momentum and Value CHF Hedged Class CHFSFr 493.15 - -2.15 0.00 Veritas Global Equity Income Fund D GBP £ 156.96 - -1.31 3.88
OPTIKA Fund Limited - Cl A $ 86.21 - 0.07 -
Indirect Real Estate SIRE £ 132.66 139.49 0.17 2.35
Global Val.Cr.Fd USD Ord Acc $ 170.34 - -0.02 0.00 Income Opportunities B2 I GBP Acc £ 1.69 1.69 0.00 0.00 Veritas Global Focus Fund D USD $ 26.01 - -0.24 0.64
Optima Fd NAV $ 81.92 - 0.00 0.00 Pictet Total Ret-Agora I EUR € 113.87 - -0.34 0.00
Global Val.Cr.Fd EUR Ord Acc € 157.88 - -0.03 0.00 Japan Alpha I JPY ¥ 173.24 173.24 0.81 0.00 The Hartford International Funds (IRL) Veritas Global Focus Fund D EUR € 23.23 - -0.12 0.66
Optima Discretionary Macro Fund Limited $ 84.55 - 0.25 0.00 Pictet Total Ret-Corto Europe I EUR € 133.45 - -0.07 0.00
SIA (SIA Funds AG) (CH)
Swiss Select Equity Inst Acc SFr 114.78 - -0.34 0.00
The Dorset Energy Fd Ltd NAV $ 31.03 - -2.12 0.00 Pictet Total Ret-Divers Alpha I EUR € 104.48 - -0.05 0.00
Japan I JPY ¥ 1712.54 - 8.60 1.19 Other International Fds
Regulated

Gbl Govt Bond (Ex Japan) Index (GBP) £ 1731.57 - -5.63 0.00
Veritas Global Focus Fund D GBP £ 30.48 - -0.30 0.60 Guide to Data
Swiss Select Equity Ord Acc SFr 113.17 - -0.33 0.00 North American I USD $ 17.32 17.32 -0.10 0.00 LTIF Stability Growth SFr 192.20 - -1.20 - Veritas Global Focus Fund A GBP £ 29.41 - -0.28 0.35
Platinum Fd Ltd $ 81.94 - -2.57 0.00 Pictet Total Ret-Kosmos I EUR € 109.80 - 0.05 0.00 UK Corporate Bond £ 1633.76 - 0.95 0.00 The fund prices quoted on these pages are supplied by
US Growth USD Ord Acc $ 190.77 - -1.96 0.00 UK Absolute Equity I GBP £ 13.36 13.36 0.03 0.00 LTIF Stability Inc Plus SFr 165.00 - -1.00 0.53 Veritas Global Focus Fund A EUR € 13.53 - -0.07 0.37 the operator of the relevant fund. Details of funds
Platinum Fd Ltd EUR € 15.77 - -0.49 0.00 Pictet Total Ret-Mandarin I USD $ 112.85 - 0.24 0.00 Gilt £ 1647.82 - -0.38 0.00 published on these pages, including prices, are for the
US Growth EUR Ord Acc € 181.77 - -1.87 0.00 Veritas Global Focus Fund A USD $ 25.08 - -0.23 0.37 purpose of information only and should only be used
Platinum Japan Fd Ltd $ 51.94 - -1.48 0.00 Pictet-US Equity Selection-I USD $ 186.18 - -1.40 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.36 - 0.00 0.00 as a guide. The Financial Times Limited makes no
US Growth GBP Ord Acc £ 191.48 - -1.97 0.00 Polar Capital LLP (CYM) Standard Life Wealth (JER) representation as to their accuracy or completeness
Pictet-US High Yield-I USD F $ 146.35 - 0.23 0.00 Veritas Global Focus Fund C GBP £ 31.96 - -0.31 0.00
Optima Partners Global Fd $ 13.42 - -0.06 0.00 Regulated PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Global Eq (ex Japan) Class HJ4 ¥ 1.41 - -0.01 0.00 and they should not be relied upon when making an
US Growth USD Inst Acc $ 176.78 - -1.81 0.00 FCA Recognised investment decision.
Pictet-USA Index-I USD F $ 181.85 - -1.69 0.00 ALVA Convertible A USD $ 128.14 - 0.69 0.00 Veritas Global Focus Fund C EUR € 24.47 - -0.12 0.00
Optima Partners Focus Fund A $ 14.49 - 0.01 0.00 Standard Life Offshore Strategy Fund Limited Global Eq (ex Japan) Class JP5 ¥ 1.39 - 0.00 0.00
The sale of interests in the funds listed on these pages
Wealthy Nat Bd EUR Inst Inc € 111.79 - -0.07 3.58 European Conviction A EUR € 143.45 - -1.26 0.00 Veritas Global Focus Fund C USD $ 27.33 - -0.25 0.00
Pictet-USD Government Bonds-I F $ 655.86 - -0.12 0.00 Bridge Fund £ 1.6054 - -0.0090 1.86 may, in certain jurisdictions, be restricted by law and
Global Eq Ex Japan Index Fund (Hedge) ¥ 1.27 - -0.01 0.00
the funds will not necessarily be available to persons
Wealthy Nat Bd GBP Inst Inc £ 116.56 - -0.07 3.54 European Forager A EUR € 172.73 - 1.78 0.00 Veritas Global Equity Income Fund A GBP £ 150.25 - -1.25 3.89 in all jurisdictions in which the publication circulates.
Oryx International Growth Fund Ltd Pictet-USD Short Mid-Term Bonds-I F $ 130.97 - -0.08 0.00 Diversified Assets Fund £ 1.1775 - -0.0030 3.23 Gbl Govt Bond (Ex Japan) Index ¥ 1.25 - 0.00 0.00 Persons in any doubt should take appropriate
Wealthy Nat Bd EUR Ord Inc € 111.02 - -0.07 3.33 Other International Funds
Veritas Global Equity Income Fund A EUR € 195.39 - -0.70 4.12 professional advice. Data collated by Morningstar. For
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.85 - 0.00 0.00 Global Equity Fund £ 1.8856 - -0.0132 0.98 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.23 - 0.00 0.00
NAV (Fully Diluted) £ 7.00 - -0.01 0.00 other queries contact reader.enquiries@ft.com +44
Wealthy Nat Bd GBP Ord Inc £ 117.18 - -0.08 3.27 Private Fund Mgrs (Guernsey) Ltd (GSY) Veritas Global Equity Income Fund A USD $ 112.37 - -0.89 4.03 (0)207 873 4211.
Pictet-Water-I EUR F € 284.80 - -1.61 0.00 Global Balanced Fund - Income Units £ 1.3564 - -0.0083 2.00 Japan Equity Index Fund ¥ 0.93 - 0.00 0.00
Regulated
Wealthy Nat Bd USD Ord Inc $ 114.42 - -0.06 3.25 The fund prices published in this edition along with
Monument Growth 17/05/2016 £ 486.47 491.54 1.30 1.25 Veritas Global Equity Income Fund C GBP £ 183.34 - -1.52 -
Global Balanced Fund - Accumulations Units £ 1.5871 - -0.0097 1.97 Japan Equity Class JP3 ¥ 1.13 - 0.00 0.00 additional information are also available on the
New Capital Alternative Strategies Financial Times website, www.ft.com/funds. The
Pimco Fds: Global Investors Series Plc (IRL) Global Fixed Interest Fund £ 0.9998 - 0.0000 4.51
Veritas Global Equity Income Fund C EUR € 238.01 - -0.86 - funds published on these pages are grouped together
All Weather Fd USD Cls $ 113.95 - -2.00 0.00 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH by fund management company.
http://gisnav.pimco-funds.com/ Prusik Investment Management LLP (IRL) Sterling Fixed Interest Fund £ 0.8522 - 0.0004 3.93 The National Investor (TNI) Veritas Global Equity Income Fund C USD $ 136.37 - -1.08 -
All Weather Fd EUR Cls € 101.98 - -1.89 0.00 Dealing: +44 20 3640 1000 Enquiries - 0207 493 1331 Prices are in pence unless otherwise indicated. The
www.tni.ae
PIMCO Funds: +44 (0)20 3640 1407 Regulated Veritas Global Real Return Fund A USD $ 21.72 - -0.13 0.28 change, if shown, is the change on the previously
UK Equity Fund £ 1.8529 - -0.0090 2.80 Other International Funds
All Weather Fd GBP Cls £ 109.81 - -2.13 0.00 quoted figure (not all funds update prices daily). Those
FCA Recognised
Permal Investment Mgmt Svcs Ltd Prusik Asian Equity Income B Dist $ 158.15 - -1.13 3.97 Veritas Global Real Return Fund A GBP £ 12.20 - -0.07 0.31 designated $ with no prefix refer to US dollars. Yield
TNI Blue Chip UAE Fund * AED 10.35 - 0.01 0.00
Tactical Opps USD Cls $ 122.07 - -3.04 0.00 www.permal.com Capital Securities Inst Acc $ 14.68 - 0.04 0.00 percentage figures (in Tuesday to Saturday papers)
Prusik Asia A $ 185.12 - -1.45 0.00 TNI Funds Ltd (BMU) Veritas Global Real Return Fund A EUR € 12.79 - -0.07 0.11 allow for buying expenses. Prices of certain older
Other International Funds
Tactical Opps EUR Cls € 102.21 - -2.61 0.00 Commodity Real Return Fund Inst Acc $ 6.31 - 0.04 0.00 insurance linked plans might be subject to capital
Offshore Fund Class A US $ Shares MENA Hedge Fund $ 954.01 - 32.16 0.00 Retail gains tax on sales.
Prusik Asian Smaller Cos A $ 139.98 - -0.54 0.00
Tactical Opps GBP Cls £ 114.29 - -2.85 0.00 Investment Holdings N.V. $ 5054.16 - 74.92 0.00 Credit Absolute Return Fund Inst Acc $ 11.09 - 0.01 0.00 TNI Funds Plc (Ireland) Veritas Asian Fund B USD $ 219.84 - -1.96 0.00 Guide to pricing of Authorised Investment Funds:
(compiled with the assistance of the IMA. The
Macro Holdings Ltd $ 4139.19 - -154.16 0.00 Diversified Income - Inst Acc $ 20.18 - 0.01 0.00 MENA UCITS Fund * $ 997.53 - -16.31 0.00
Purisima Investment Fds (CI) Ltd (JER) Veritas Asian Fund B GBP £ 299.20 - -3.07 0.00 Investment Management Association, 65 Kingsway,
Regulated London WC2B 6TD.
Fixed Income Holdings N.V. $ 331.76 - -3.10 - Diversified Income Durat Hdg Fund Inst Acc $ 11.44 - 0.01 0.00 Tel: +44 (0)20 7831 0898.)
Stenham Asset Management Inc Veritas Asian Fund B EUR € 235.31 - -1.38 0.00
PCG B 161.71 - -0.33 0.00 www.stenhamassetmanagement.com
Permal Absolute Return Fund $ 153.10 - -0.04 0.00 Emerging Asia Bond Fund Inst Acc $ 10.29 - 0.01 0.00 OEIC: Open-Ended Investment Company. Similar to a
Other International Funds Veritas China Fund B GBP £ 123.03 - 0.58 0.00
PCG C 159.35 - -0.32 0.00 unit trust but using a company rather than a trust
Emerging Local Bond - Inst Acc $ 11.50 - -0.01 0.00 structure.
Stenham Asia USD $ 123.41 - 5.98 0.00 Veritas China Fund B EUR € 163.91 - 1.09 0.00

Emerging Markets Bond - Inst Acc $ 40.28 - 0.00 0.00 Different share classes are issued to reflect a different
Stenham Credit Opportunities A Class USD $ 97.65 - 1.05 0.00 Veritas Global Focus Fund B USD $ 18.08 - -0.16 0.00 currency, charging structure or type of holder.
Northwest Investment Management (HK) Ltd Putnam Investments (Ireland) Ltd (IRL)
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Emerging Markets Corp.Bd Fund Inst Acc F $ 13.21 - 0.01 0.00 Regulated Stenham Equity UCITS USD $ 132.78 - -0.08 0.00 Veritas Global Focus Fund B GBP £ 22.43 - -0.22 0.00 Selling price: Also called bid price. The price at which
Other International Funds Toscafund Asset Management LLP (UK)
Putnam New Flag Euro High Yield Plc - E € 1000.02 - 2.14 4.03 units in a unit trust are sold by investors.
Emerging Markets Short-Term Local Currency Fund $ 12.19 - 0.02 0.00 www.toscafund.com
Northwest $ class $ 2280.74 - 1.03 0.00 Stenham Growth USD $ 199.40 - 1.98 - Veritas Global Focus Fund B EUR € 16.08 - -0.09 0.00
Authorised Funds Buying price: Also called offer price. The price at
Euro Bond - Inst Acc € 23.13 - 0.03 0.00 Stenham Healthcare USD $ 159.50 - 2.20 0.00 which units in a unit trust are bought by investors.
Aptus Global Financials B Acc £ 2.83 - 0.01 4.65 Veritas Global Equity Income Fund B GBP £ 137.87 - -1.15 3.92
Pictet Asset Management (Europe) SA (LUX) Includes manager’s initial charge.
15, Avenue J.F. Kennedy L-1855 Luxembourg Euro Credit - Inst Acc € 15.13 - 0.01 0.00 Stenham Managed Fund USD $ 107.00 - 0.71 0.00 Aptus Global Financials B Inc £ 2.47 - 0.00 4.81 Veritas Global Equity Income Fund B EUR € 178.84 - -0.65 4.14
Tel: 0041 58 323 3000 Single price: Based on a mid-market valuation of the
FCA Recognised Euro Income Bond - Inst Acc F € 13.25 - 0.02 0.00 Stenham Macro UCITS USD $ 99.82 - 0.45 0.00 underlying investments. The buying and selling price
Veritas Global Equity Income Fund B USD $ 111.12 - -0.88 4.05
for shares of an OEIC and units of a single priced unit
Pictet-Absl Rtn Fix Inc-HI EUR € 107.32 - 0.04 0.00 Euro Long Average Duration - Inst Acc € 23.68 - 0.08 0.00 trust are the same.
Stenham Multi Strategy USD $ 109.88 - -0.38 - Toscafund Asset Management LLP Veritas Global Real Return Fund B USD $ 21.03 - -0.12 0.00
www.toscafund.com Treatment of manager’s periodic capital charge:
Pictet-Agriculture-I EUR F € 181.24 - -1.27 0.00 Euro Low Duration Fund Inst Acc € 11.31 - 0.00 0.00
Robeco Asset Management (LUX) Stenham Quadrant USD A $ 395.45 - -2.44 - Other International Funds Veritas Global Real Return Fund B GBP £ 11.95 - -0.07 0.00 The letter C denotes that the trust deducts all or part
Oasis Crescent Management Company Ltd Pictet-Asian Equities Ex Japan-I USD F $ 195.00 - -1.71 0.00 Euro Real Return - Inst Acc € 13.69 - 0.02 0.00
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. of the manager’s/operator’s periodic charge from
Stenham Trading Inc USD $ 114.51 - -0.71 - Tosca A USD $ 268.48 - 3.15 - Veritas Global Real Return Fund B EUR € 13.64 - -0.08 0.00 capital, contact the manager/operator for full details
Other International Funds www.robeco.com/contact
Pictet-Asian Local Currency Debt-I USD F $ 157.86 - -0.75 0.00 FCA Recognised of the effect of this course of action.
Euro Short-Term Inst Acc € 12.25 - -0.01 0.00 Stenham Universal USD $ 410.79 - -1.46 - Tosca Mid Cap GBP £ 261.94 - 2.08 0.00
Oasis Crescent Equity Fund R 10.28 - 0.02 0.00
Asia-Pacific Equities (EUR) € 122.55 - 0.24 0.00 Exit Charges: The letter E denotes that an exit charge
Pictet-Biotech-I USD F $ 646.90 - -8.69 0.00 Euro Ultra Long Duration - Inst Acc € 31.99 - 0.11 0.00 Stenham Universal II USD $ 151.93 - -0.60 0.00 Tosca Opportunity B USD $ 359.70 - 3.16 0.00 Veritas Asset Management LLP may be made when you sell units, contact the
Chinese Equities (EUR) € 64.68 - -0.22 0.00 www.veritas-asset.com manager/operator for full details.
Pictet-Brazil Index I USD $ 45.12 - -0.69 0.00 Global Advantage - Inst Acc $ 12.53 - 0.01 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pegasus Fund Ltd A-1 GBP £ 61.06 - 0.07 0.00 Other International Funds
Regulated Em Stars Equities (EUR) € 154.85 - -0.43 0.00 Time: Some funds give information about the timing of
Pictet-CHF Bonds I CHF SFr 511.39 - -0.07 0.00 Global Advantage Real Return Fund Inst Acc $ 8.71 - 0.01 0.00 Stratton Street Capital (CI) Limited (GSY) Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00 price quotes. The time shown alongside the fund
Oasis Global Investment (Ireland) Plc manager’s/operator’s name is the valuation point for
Emerging Markets Equities (EUR) € 132.79 - -0.65 0.00 Regulated
Pictet-China Index I USD $ 95.22 - 1.14 0.00 Global Bond - Inst Acc $ 28.71 - 0.01 0.00 Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00 their unit trusts/OEICs, unless another time is
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 1.05
Japan Synthetic Warrant Yen Class ¥ 1243.57 - -34.21 0.00 indicated by the symbol alongside the individual unit
Flex-o-Rente (EUR) € 110.81 - -0.02 0.00 trust/OEIC name.
Oasis Global Equity $ 26.93 - -0.11 0.34 Pictet-Clean Energy-I USD F $ 75.33 - -0.58 0.00 Global Bond Ex-US - Inst Acc $ 20.24 - 0.02 0.00 Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
Japan Synthetic Warrant GBP Hedged Class £ 132.09 - -9.67 0.00
Glob.Consumer Trends Equities (EUR) € 143.63 - -1.16 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Oasis Crescent Global Investment Fund (Ireland) plc Pictet-Digital Communication-I USD F $ 257.87 - -1.43 0.00 Global High Yield Bond - Inst Acc $ 20.52 - 0.03 0.00
Japan Synthetic Warrant USD Class $ 14.95 - -0.29 0.00 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Oasis Crescent Global Equity Fund $ 27.66 - -0.12 0.11 High Yield Bonds (EUR) € 130.67 - 0.22 0.00 midnight. Daily dealing prices are set on the basis of
Pictet-Em Lcl Ccy Dbt-I USD F $ 165.52 - 0.57 0.00 Global Investment Grade Credit - Inst Income $ 12.35 - 0.00 3.80 Waverton Investment Funds Plc (1600)F (IRL)
the valuation point, a short period of time may elapse
Japan Synthetic Warrant USD Hedged Class $ 132.10 - -8.49 0.00 waverton.investments@citi.com
Oasis Crescent Variable Balanced Fund £ 10.43 - -0.01 0.84 Lux -O- Rente (EUR) € 148.22 - -0.07 0.00 before prices become available. Historic pricing: The
Pictet-Emerging Europe-I EUR F € 279.01 - 0.82 0.00 Global Investment Grade Credit Fund Inst Acc € € 11.84 - 0.01 0.00 FCA Recognised letter H denotes that the managers/operators will
Renminbi Bond Fund AUD Cls A A$ 123.86 - 0.56 3.30
OasisCresGl Income Class A $ 10.88 - 0.01 2.45 New World Financials (EUR) € 46.74 - 0.03 0.00 normally deal on the price set at the most recent
Pictet-Emerging Markets-I USD F $ 461.18 - -4.16 0.00 Waverton Asia Pacific A USD $ 16.83 - -0.09 5.88
Global Investment Grade Credit Fund Inst Acc $ $ 17.24 - 0.01 0.00 valuation. The prices shown are the latest available
Renminbi Bond Fund AUD Cls B A$ 125.84 - 0.58 3.08 before publication and may not be the current dealing
OasisCresGl LowBal D ($) Dist $ 11.71 - -0.03 0.00 US Premium Equities (EUR) € 178.14 - -1.11 0.00 TreeTop Asset Management S.A. (LUX)
Waverton Global Bond Fund Cls A $ 8.43 - 0.00 5.46
Pictet-Emerging Markets Index-I USD F $ 209.04 - 1.10 0.00 Global Multi-Asset - Inst Acc $ 14.18 - 0.04 0.00 levels because of an intervening portfolio revaluation
Regulated
Renminbi Bond Fund CHF Cls A SFr 118.99 - 0.54 3.41 or a switch to a forward pricing basis. The
OasisCresGl Med Eq Bal A ($) Dist $ 11.91 - -0.04 0.53 US Premium Equities (USD) $ 199.51 - -1.28 0.00 TreeTop Convertible Sicav Waverton Global Equity Fund A GBP £ 13.91 - -0.16 0.52
Pictet-Emerging Corporate Bonds I USD $ 112.45 - 0.11 0.00 Global Real Return - Inst Acc $ 18.51 - 0.04 0.00 managers/operators must deal at a forward price on
Renminbi Bond Fund CHF Cls B SFr 118.89 - 0.54 3.16 request, and may move to forward pricing at any time.
International A € 269.22 - -0.70 0.00
Oasis Crescent Gbl Property Eqty $ 9.74 - -0.05 1.73 Pictet-Emerging Markets High Dividend I USD $ 90.50 - -0.78 0.00 Waverton UK Fund A GBP £ 12.71 - -0.04 1.80 Forward pricing: The letter F denotes that that
Income Fund Inst Acc $ 12.68 - -0.01 0.00
Renminbi Bond Fund CNH Cls A CNH 131.55 - 0.63 3.26 managers/operators deal at the price to be set at the
International B $ 348.00 - -0.96 0.00
Pictet-Emerging Markets Sust Eq I USD $ 83.35 - 0.21 0.00 Waverton Equity Fund A GBP £ 14.22 - -0.04 0.37 next valuation.
Inflation Strategy Fund Inst Acc $ 9.13 - 0.01 0.00
Renminbi Bond Fund CNH Cls B CNH 131.37 - 0.62 3.02 International C £ 117.55 - -0.32 0.00
Waverton Sterling Bond Fund A GBP £ 9.27 - -0.01 5.30 Investors can be given no definite price in advance of
Pictet-EUR Bonds-I F € 572.46 - -0.08 0.00 Low Average Duration - Inst Acc $ 14.93 - -0.01 0.00 the purchase or sale being carried out. The prices
Renminbi Bond Fund Euro Cls B € 121.09 - 0.55 3.08 International D € 250.08 - -0.64 3.35 appearing in the newspaper are the most recent
Pictet-EUR Corporate Bonds Ex Fin i EUR € 147.35 - 0.04 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 8.55 - 0.00 0.00 provided by the managers/operators. Scheme
Renminbi Bond Fund GBP Cls B £ 123.62 - 0.57 3.14 TreeTop Global Sicav particulars, prospectus, key features and reports: The
WA Fixed Income Fund Plc (IRL)
Pictet-EUR Corporate Bonds-I F € 204.32 - 0.06 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.79 - -0.02 0.00 most recent particulars and documents may be
S W Mitchell Capital LLP (CYM)
Renminbi Bond Fund SGD Cls B S$ 123.30 - 0.57 3.07 Global Opp.A € 134.46 - -0.09 0.00 Regulated
obtained free of charge from fund
Regulated
Pictet-EUR Government Bonds I EUR € 162.67 - 0.24 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 12.38 - -0.10 0.00 European Multi-Sector € 117.40 - 0.24 0.00 managers/operators. * Indicates funds which do not
Odey Asset Management LLP (CYM)
S W Mitchell European Fund Class A EUR € 279.01 - 3.39 - Renminbi Bond Fund USD Cls B $ 123.42 - 0.56 2.93 Global Opp.B $ 135.42 - -0.01 0.00 price on Fridays.
Regulated Pictet-EUR High Yield-I F € 245.19 - 0.37 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.32 - 0.00 0.00 Global Opp.C £ 179.11 - -0.80 0.00
S W Mitchell Small Cap European Fund Class A EUR € 216.31 - 2.15 - Renminbi Bond Fund YEN Cls B ¥ 13949.66 - 62.80 0.00 Charges for this advertising service are based on the
OEI Mac Inc GBP A £ 262.02 - 22.11 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 137.25 - -0.01 0.00 Yapi Kredi Asset Management (TUR) number of lines published and the classification of the
StocksPLUS{TM} - Inst Acc $ 23.29 - -0.21 0.00 Sequoia Equity A € 131.25 - 0.18 0.00
Renminbi Bond Fund USD Cls A $ 170.00 - 0.78 3.18 Yapi Kredi Plaza A Blok Kat:13 Levent 34330 Istanbul / Turkey fund. Please contact data@ft.com or
OEI Mac Inc GBP B £ 148.94 - 13.64 0.00 The Charlemagne Fund EUR € 247.09 - -68.80 -
call +44 (0)20 7873 3132 for further information.
Pictet-EUR Short Term HY I EUR € 121.99 - 0.53 0.00 Total Return Bond - Inst Acc $ 27.86 - 0.02 0.00 Email: info@ykportfoy.com.tr; Tel: + 90 (212) 385 48 48
Renminbi Bond Fund GBP Cls A £ 164.60 - 0.75 3.39 Sequoia Equity B $ 137.17 - 0.23 0.00
OEI MAC Inc USD $ 1391.93 - 116.08 0.00 www.yapikrediassetmanagement.com
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.79 - 0.00 0.00 UK Corporate Bond - Inst Acc £ 17.86 - 0.03 0.00 Other International Funds
Renminbi Bond Fund SGD Cls A S$ 163.16 - 0.75 3.32 Sequoia Equity C £ 162.54 - -0.45 0.00
Odey European Inc EUR € 613.36 - 44.48 0.00
Pictet-Euroland Index IS EUR € 122.07 - -0.73 0.00 Private Sector Bonds and Bills FundTRY 0.011440 - 0.000000 -
UK Long Term Corp. Bnd Inst-Inst Acc £ 20.04 - 0.05 0.00
22 ★ FINANCIAL TIMES Thursday 19 May 2016

MARKETS & INVESTING

INSIGHT Commodities

Chris
Rossbach China looks to London’s gold expertise
Hub for metal reinforced where in the world — between ICBC daily fixing in 2015 after allegations of ‘If you’ve got gold by volume on the SGE, according to
[Industrial and Commercial Bank of manipulation. a statement on its website. China is the
by ICBC unit’s vault China] Shanghai and Australia, for Last week ICBC Standard Bank also aspirations world’s largest consumer of gold.

Buffett takes internet purchase in the capital example — for a price, the deal location
is London,” David Gornall, former head
of metals trading at broker Natixis, said.
became a member of the company that
manages the electronic system of clear-
ing gold, the first bank to join since
to grow in the
gold market,
Still, to compete with other centers
such as Hong Kong and Singapore, Lon-
don needs to build market infrastruc-
disrupters out of the HENRY SANDERSON
London’s role as the historic centre of
“Until that changes, if you’ve got aspira-
tions to grow in the gold market, then
2005, and the first non-European or
American bank.
then you’re
only left
ture that better fits gold trading in an era
of tighter capital and leverage rules at

box labelled ‘too hard’ the gold market has been strengthened
by this week’s purchase of a vault by
China’s largest state-owned bank, exec-
utives from the UK capital insisted, even
as demand for the metal has shifted to
you’re only left with London.”
The purchase of one of London’s larg-
est gold vaults by a subsidiary of China’s
ICBC is the latest effort by Chinese
banks to expand into the UK capital,
The moves “deliver a vote of confi-
dence in the depth and strength of Lon-
don, the world’s international gold mar-
with London’
ket”, said Ruth Crowell, the head of the
London Bullion Market Association.
banks, Matt Chamberlain, head of busi-
ness development at the London Metal
Exchange, which is owned by HKEx,
said at the Bloomberg Precious Metals
Forum yesterday.

A
box on Warren Buffett’s desk bears the
inscription “Too Hard”. In it are details of
investments the founder of Berkshire Hatha-
way files away because the companies lack
the simplicity and clarity he insists on. It is
where papers on Alphabet, the parent company of Google,
Amazon and other internet companies have lingered for
the past decade. Until now.
When I attended Berkshire’s annual meeting two weeks
ago as a shareholder, the company Mr Buffett mentioned
more than any other was not Coca-Cola or See’s Candies,
makers of the famous peanut brittle, but Amazon.
There was much praise for the eretailer, the value it
delivers to consumers and the disruption it causes to tradi-
tional competitors. Over the past couple of days Mr Buffett
has backed a bid for Yahoo, and Berkshire filings revealed
it bought $1bn of Apple stock in the first quarter.
What has changed? Mr Buffett is a disciple of the value
investing approaches of Benjamin Graham and Philip
Fisher. Their frameworks are as relevant today as they
were when written around the middle of the last century.
Mr Graham’s is pure value: the business matters but it can
be just average. What is more important is a low valuation,
a low price-to-book multiple, low leverage, and consist-
ency of earnings and dividends.
Apple and Yahoo are value investments in this category.
Berkshire’s investment in IBM is too. Low valuations are
tempting but they can be value traps because businesses
can lose their competitive advantage and be disrupted.
Mr Fisher’s approach is different: the quality of the com-
pany and its prospects for profitable growth are para-
mount. Valuation is important, but strong competitive
positions and the ability to compound sales and value over
years are what matter.
Alphabet, Amazon and Facebook are such companies.
They are disruptive, dominat-
ing their industries, erecting Amazon, Facebook
strong moats and building
scale. They have rapid growth and Alphabet are
in sales, earnings and cash likely to be the first
flows, and have generated trillion-dollar
vast wealth for their founders
and shareholders. They are companies
different businesses, but have
similar strategic positioning, financial strength and pros-
pects for value generation.
Alphabet has created an industry, dominates internet
search and has generated significant amounts of cash for
years, allowing it to innovate and invest in the Android
operating system and other growth areas.
Amazon is building the Walmart of our time, while being
more or less cash break-even and spending billions to
prove or disprove growth initiatives. AWS, its cloud com-
puting platform, helped its share price to double last year.
Facebook has used scale to buy competitors that could
threaten it, as it did with Instagram and WhatsApp, and
it has reached an inflection point. It is beginning to lever-
age its user base of 1.7bn to generate earnings and cash
from advertising.
Each company is still led by a visionary founders. They
run them personally as owners with a long-term view,
looking through quarterly earnings and market volatility.
Concern about such things is said to be a firing offence at
Amazon and it would be hard to find a chief as indifferent
to fulfilling market expectations as Jeff Bezos.
While Alphabet and Facebook have put in place share
structures that give voting control to their founders, they
have preserved equal value for shareholders and have an
exemplary record of equal treatment.
IfallthissoundsfamiliartopeoplelisteningtoMrBuffett,
it should. The strength of the businesses and the leadership
shown by founders with the prospect of decades of value
generation to come is reminiscent of Berkshire. It is no
wonder then that value investors are starting to realise the
prospects forvaluegeneration these companies offer.
Mr Buffett has taken the first steps to buy Apple, a Gra-
ham-type value stock. Therein lies the lesson and the
opportunity: great investors recognise patterns that allow
them to generate top returns over time.
The same criteria that made Nestlé, Anheuser-Busch
and Berkshire the companies they are today apply to Ama-
zon, Alphabet and Facebook. They are likely to be the first
trillion-dollar companies, and there is still time to buy.
Chris Rossbach is managing partner and chief investment
officer at J Stern & Co, a private investment office based in
London and Zurich
China and India.
If a gold buyer in China wants to trade
physical gold bars with someone thou-
sands of miles away in Australia, they
will often exchange ownership of a gold
bar sitting in a vault within the M25.
That reflects London’s position as the
centre of gold clearing and settlement.
“Anyone who picks up the phone any-
Tensions bubble under surface of forex calm
Commentators are asking not
how long a truce can last, but
what will come afterwards
ROGER BLITZ
China’s Shanghai and Sendai in Japan’s
north are linked by a twice-weekly
three-hour flight. The cost? About £400
or, Rmb3,800, or ¥63,000.
In the broader currency stratosphere,
the link between Shanghai and Sendai
has greater resonance, offering as good a
guide as any to prospects for the global
economy and market stability.
Twelve weeks ago, at a G20 summit in
Shanghai, the world’s big central banks
worried about a highly volatile market
and how to make monetary policy work.
They focused on currency manipula-
tion as one of the causes of global eco-
nomic instability and urged all coun-
tries to refrain from it. This weekend’s
G7 gathering of finance ministers in
Sendai gives them the chance to look at
what progress has been made.
The evidence is pretty compelling. In
those 12 weeks, the Federal Reserve has
trodden a dovish line on rates, the Euro-
pean Central Bank has called a halt to
taking interest rates further into nega-
tive territory, the Bank of Japan has
refrained from further monetary easing
and the People’s Bank of China has gone
to war against speculators determined
to drive the renminbi lower.
Currency commentators argue at
length whether all these actions were
co-ordinated via some kind of unwrit-
ten “currency wars truce” reminiscent
of the 1985 Plaza Accord.
Alan Ruskin, FX strategist at Deut-
sche Bank, prefers to call it “an under-
standing”, and the understanding was
that dollar strength was “starting to
become problematic for global risk”.
Truce or not, these actions have
resulted in a weaker dollar, a barely dis-
cernible shift in the dollar-renminbi
rate, buoyant emerging market curren-
cies, an oil price nudging $50 a barrel
and a fairly becalmed market. All pretty
painless, except for the eurozone and
Japan, whose currencies have strength-
ened more than suits their economies.
Currency wars? Not this year. The
only currencies to have weakened more
than 1.5 per cent against the dollar so far
in 2016 are Brexit-affected sterling and
the Mexican peso. “A less strong dollar
has been supportive for global financial
conditions,” says Mr Ruskin.
It is hardly surprising, therefore, that
the US government, wanting to keep
whose position as the centre of gold It also comes as China’s domestic gold This year the LBMA, which oversees
clearing and settlement grew out of its market, which is dominated by the the market, launched proposals about
historical role as the hub of gold trading. Shanghai Gold Exchange, is making how to improve the city’s gold market,
China’s three largest banks, ICBC, the efforts to open up. In March, Hong Kong including services that will enable the
Bank of China and China Construction Exchanges and Clearing and the SGE introduction of a trading venue.
Bank have now all become members of signed an agreement to consider joint One proposal, backed by the World
London’s electronic daily gold bench- development of precious metals prod- Gold Council, is seeking to create a gold
mark price-setting process after it was ucts and connecting both markets. futures trading venue and eventually
overhauled from its almost century-old ICBC is ranked the top bank trader of introduce smaller kilobar contracts.
Analysis. Currencies
Dollar and emerging markets
currencies
Dollar JPMorgan
index Emerging Markets
Currency index
100 70
98 68
96 66
94 64
92 62
Jan 2016 May
Yen and euro
Against the dollar ($ per currency)
Yen Euro
0.0094 1.16
0.0092 1.14
0.0090
1.12
0.0088
1.10
0.0086
0.0084 1.08
0.0082 1.06
Jan 2016 May
Source: Thomson Reuters Datastream, Bloomberg
Germany’s things stable, has been upping the cur- BNY Mellon, citing his bank’s flow data, failures in monetary policy. Each cen-
finance minister rency manipulation rhetoric. plus stalled rallies in gold and equities. tral bank is struggling with its own
Wolfgang The Treasury Department’s publica- At a time of renewed pressure on the demons, says Mr Englander — the Fed
Schäuble, tion last month of a new currency renminbi and Chinese economic data fears lifting rates, the ECB fears taking
centre, was watchlist, which includes China, Ger- missing expectations, “the Fed will monetary easing further, the BoJ fears
among many, Japan and South Korea, shows undoubtedly be alert to the possibility further disaster if it extends its negative
negotiators at “they appear to be even more focused of another summer of unrest in finan- interest rates policy and the PBoC fears
the G20 meeting on that point [preventing currency cial markets”, says Mr Derrick — all the the debt growth that accompanies each
in Shanghai in manipulation],” says Stephen Jefferies, more so with a contentious US presiden- easing strategy.
February at JPMorgan. tial election approaching. “The question is which central bank
Aly Song/Reuters
The signs are that Treasury secretary On the other hand, thinks Mr Ruskin, needs the move the most, and which can
Jack Lew will use the G7 at Sendai to the US currency probably weakened find a way of mitigating the downside of
reinforce the importance of exchange- sufficiently to cushion the impact of any a rates change,” says Mr Englander.
rate stability, so Sendai will maintain renewed vigour in the dollar. Market commentators are asking not
the currencies equilibrium — but for The Fed’s shifting expectations from how long a currency truce lasts, but
how much longer? four rate rises this year to two gives what comes after it. “If monetary policy
“This is like a winter currency wars more breathing room for risk appetite is tapped out and currency depreciation
truce,” says Steven Englander, at Citi- and should reduce the potential for outlawed, might fiscal expansion be the
group. “As soon as the ground solidifies, financial stress, he adds. best way to get the global economy
they will be back at it.” A currency truce may not bear fruit in going?” asks Steven Barrow, FX strate-
Central banks have bought time with terms of actual data, says Mr Jefferies, gist at Standard Bank.
their currency-calming measures, “but the desire to keep currencies stable At some point, the US, Japan or China
though they have gone as far as they can. means it might have a bit more legs”. will decide domestic policy needs FX
Dollar strength is warming up again, The broader picture is more gloomy, stability, “and once one moves, the genie
says Simon Derrick, FX strategist at because currency stability is masking is out of the bottle”.

Currencies Currencies

Brexit poll triggers pound rally and gilt sell-off Rand leads EM decline as dollar bounces back
ROGER BLITZ AND ELAINE MOORE
Sterling found a new lease of life and
gilts sold off yesterday, after an opinion
poll ahead of the referendum on Brit-
ain’s membership of the EU reflected a
shift towards the Remain camp.
The pound rallied strongly against all its
big currency partners, gaining 1.1 per
cent on the dollar, and 1.4 per cent on
the euro. Sterling was worth just under
€1.30, a level last touched on March 10.
Sterling hit a year-low of $1.38 in late
February, 6.5 per cent weaker since the
start of the year, principally on market
worries about the impact on the UK
economy of a so-called “Brexit” vote.
But amid volatility in sterling options,
the pound has since rallied by more
than 5 per cent.
Yesterday’s trigger was an opinion
poll showing the Remain campaign
opening up a 13 percentage-point gap
over its Leave rivals. The Financial
Times’ poll of polls, which in recent
weeks has put the gap at 2-3 points, now
shows Remain with a 6-point lead.
Jane Foley, FX strategist at Rabobank,
said: “If the polls continue to show a
wide lead for the Remain camp and,
assuming the pollsters have got it right
this time around, June 23 could even
prove to be a non-event as far as sterling
volatility is concerned since the relief
will already be priced in.”
The pound had been under some
pressure from jobs data which showed
that while employment was rising to a
new record and the jobless total falling,
wages growth was stalling.
With the risk of Brexit abating,
demand for UK government bonds fell,
pushing the country’s benchmark
10-year borrowing rate up to a near-
fortnight high of 1.44 per cent. Yields in
all the large government bond market
rose yesterday ahead of the release of US
Federal Reserve minutes, and amid
growing speculation that policymakers
may be stepping up plans to raise inter-
est rates this year.
However, the underperformance of
gilts in both long- and short-dated bond
markets suggested something else was
weighing on investor minds, said John
Wraith,headofUKratesstrategyatUBS.
“Markets appear to believe a UK vote
to leave Europe will trigger a shock-
inducedslowingofeconomicactivityand
a demand for haven assets like gilts,” he
added. “That means gilts tend to under-
perform on days like today when con-
cerns about Brexit are alleviated by new
pollresults.Wedostillhaveoveramonth
togo,ofcourse,andwestillthinkitwillbe
inthebalancerightuptothevote.”
JOEL LEWIN
Emerging market currencies extended
declines against the dollar yesterday,
with the South African rand on track
for its worst month in three years.
After a stellar rebound rally in the first
quarter, EM currencies are wilting
across the board, with the dollar show-
ing signs of renewed vigour as the bond
market prices in a higher risk of the Fed-
eral Reserve raising overnight borrow-
ing costs in June.
In late London trading, the Brazilian
real, South African rand and Polish
Zloty were weaker by 1.3 per cent, 1.2
per cent and 1 per cent, respectively.
Since the start of April these curren-
cies have led EM falls against the dollar,
accompanied by the Russian rouble and
Malaysian ringgit, and some analysts
warn the trend has further to run.
This was the “end of the honeymoon”
for EM foreign exchange, said Luis
Costa, strategist at Citigroup. “I am get-
ting a lot more bearish EM FX. We are
seeing several cracks in the wall. The
mood around Fed action is not helping
the EM FX either.”
A string of firmer US data and
speeches from Fed officials indicating a
willingness to raise interest rates in the
coming months have boosted the dollar
this week.
Kit Juckes, FX strategist at Société
Générale, said the dollar was “getting
ready for take-off”, but BNP Paribas
analysts forecast that forthcoming data
would be too mixed to support rate-rise
expectations in the next few months.
Rebecca O’Keeffe, head of investment
at Interactive Investor, said: “While the
odds of a June US rate hike have
increased substantially over the past
week, the market is arguably still con-
siderably more dovish than any of the
recent Fed speakers.’’
Investors awaited the release of the
Fed’s meeting minutes for April later
yesterday, as the next catalyst for fur-
ther shifts in currencies.
The rand has slipped around 10 per
cent against the dollar this month,
already its worst performance since May
2013. The South African currency
dropped to a two-month low of R15.8315
to the dollar. A Sunday Times report that
the finance minister faces “imminent
arrest”, denied by the government, has
alsoincreasedpressureonthecurrency.
“The rand and local assets will be
extremely sensitive to any further
developments that may have serious
implications for the much appreciated
finance minister [Pravin] Gordhan,”
said Piotr Matys at Rabobank.
Thursday 19 May 2016
TRADING POST
Jamie
Chisholm
Société Générale this week published a
list of indicators that it reckons have
provided bearish signals in the early
phases of recent market corrections.
With the caveat that such indicators
are not static and can be changed by
unknown risks, here are a selection.
SocGen has broken down the
markets’ main risks into four areas.
First, there is concern about a hard
landing in China and by extension
slowing global growth.
The market indicators to watch out
for in this regard are: a weakening
renminbi, which has become a good
indicator of market stress; rising China
sovereign credit default swaps,
reflecting indebtedness fears; and
falling oil and base metal prices, on
fretting over waning demand.
Next is corporate leverage, which
has been increasing in response to
ultra-low interest rates.
Keep an eye out for signs of stress in
the US Markit investment grade and
high-yield CDS indices. SocGen also
thinks the Bloomberg US dollar
Emerging Market Corporate Bond
yield should be watched for signs of
worrying about faster Fed tightening.
Third is equity valuations. “Despite
the corrections in equity markets over
the summer 2015 and Q1 16, there is
still a mismatch between expensive
valuations and sluggish global growth,”
says SocGen.
Keep an eye on price/book ratios
and downward earnings revisions.
Finally, the worry about European
political uncertainty can be gauged by
“peripheral” nation CDS and the Markit
iTraxx Europe Financial indices.
jamie.chisholm@ft.com
Emerging market corporate
bond index yield
Per cent
7 $48.80.
6 Data from the US Energy Information
5
May 2015 2016 May
Source: Bloomberg
Wall Street
Goldman sees strong
demand as upgrade
drives Tesla’s 4% gain
Mamta Badkar
Tesla shares shifted to high gear
yesterday after the electric automaker
was upgraded by analysts at Goldman
Sachs, who cited strong demand for
Tesla’s cars and a more stable macro
backdrop for the upgrade.
Shares in the Palo Alto carmaker
advanced more than 4 per cent to
$213.44 after the stock was upgraded to
“buy” from “neutral” and analysts
maintained their price target of $250 a
share. The number of analysts with a
“buy” rating on the stock rose to 10
while three have a “hold” rating and six
have a ‘sell’ rating, Bloomberg said.
Elon Musk’s Model 3 mass market
vehicle, which was unveiled earlier this
year, has already booked 400,000
reservations.
London
RBS climbs as investor
pessimism is criticised
for being too extreme
Bryce Elder
Royal Bank of Scotland was the stand-
out performer in a flat market after its
joint house broker argued that investor
pessimism had become too extreme.
RBS shares have slipped 11 per cent
since late April, when the bank scotched
hopes of a cash return by pushing back
the sale of its Williams & Glyn arm
beyond 2017. But a valuation of 0.7
times book value for the 2017 trough
year still “suggests a positive risk-
Global overview
Treasury yields rise with dollar as
focus switches to US interest rates
Bank officials talk up
possibility of further hikes
ahead of Fed minutes,
while crude hovers
around $50 a barrel
DAVE SHELLOCK
Shorter-term US Treasury yields hit
three-week highs and the dollar edged
ahead as participants focused on the
possibility of the Federal Reserve rais-
ing interest rates sooner than had been
expected.
The release later in the day of the min-
utes of the central bank’s April policy
meeting helped keep Wall Street rela-
tively cautious as gains for financial
stocks were offset by renewed volatility
for oil prices.
By midday in New York, the S&P 500
equity index was up 0.1 per cent at 2,050
after retreating 0.9 per cent on Tuesday
following a batch of broadly robust US
economic data and some relatively
hawkish “Fedspeak”.
In Europe, the Stoxx 600 index rose
0.9 per cent to its highest close this
month, in spite of a weaker showing by
the mining sector that left the FTSE 100
in London fractionally lower. In Tokyo,
the Nikkei 225 edged back 0.1 per cent.
Those moves came as Brent oil
remained close to $50 a barrel — but
stubbornly refused to break above that
milestone for the first time since
November.
Brent did reach a fresh six-month
high of $49.85 before easing back in
choppy trading conditions to $49.65, up
0.8 per cent on the day. US West Texas
Intermediate was 1 per cent firmer at
Administration showing an unexpected
rise in crude inventories last week went
largely unheeded. The gasoline stock-
pile fell far more than forecast.
Tesla Motors
Share price ($)
300
250
200
150
May 2015 2016 May
Source: Thomson Reuters Datastream
Day's
Indices
S & P 500
Close
2051.29
change
4.08
DJ Industrials
Nasdaq Comp
17540.92
4745.40
10.94
29.67
Russell 2000 1204.70 -8.35
VIX 15.40 -0.17
US 10 yr Treas Bd 1.82 0.05
US 2 yr Treas Bd 0.86 0.01
Patrick Archambault, at Goldman,
said an update on the car — which he
expects in early 2017 — should “have the
added benefit of driving incremental
awareness and interest in the mass-
market product, and has the potential
to drive further reservations”.
Noting the potential for positive news,
Mr Archambault said Tesla could make
an announcement on shared mobility,
or a ride-sharing service, at some point.
Finally, he expects that a ramp-up in
production of its falcon-winged Model X
vehicles could also help shares this year.
Concerns about accelerated
production plans to meet demand for
the mass market vehicle, delayed
projections for positive free cash flow
and delivery target misses have weighed
reward skew for the patient investor”,
argued Morgan Stanley. The broker
forecast RBS’s surplus capital to reach
60p a share by the end of 2018, which it
said could fund special dividends or be
used to buy back some of the
government’s 73 per cent stake.
The taxpayer’s RBS shares are
currently 55 per cent below the 500p
bailout price and 45 per cent below the
410p valuation the Treasury uses for its
own accounts. Morgan Stanley’s
estimates were based on Williams &
Glyn needing an extra £1.5bn in
restructuring costs, taking the total
disposal cost to £3.2bn.
The broker put a 290p target on RBS,
which added 4.3 per cent to 223.7p.
An oil price rally lifted the FTSE 100
off session lows to leave the index little
changed, down 1.97 points at 6,165.80.
Reckitt Benckiser edged 0.3 per cent
higher at £68.50 amid speculation that
it might bid for Church & Dwight, the
US-listed maker of Arm & Hammer
toothpaste and Trojan condoms.
The talk appeared to stem from a
Spanish website report that claimed
Church & Dwight was the target of bids
from Procter & Gamble and “Durex”,
Reckitt’s condom brand, though it
★ FINANCIAL TIMES 23
MARKETS & INVESTING
Markets update
S&P 500 index
Change on day 0.19%
2100
2080
2060
2040
Apr 2016 May
at RBS, commented that, with the April US equities Wall Street had a choppy
FOMC minutes due out later in the day, morning as participants focused on the
it was fair for the markets to worry that prospects for US interest rates and
the Fed might not be as dovish as its waited for the minutes of the Federal
chair Janet Yellen was in March. Reserve’s April policy meeting
“The litany of Fed presidents trying to
get the markets to price in more in FTSE 100 index
regards to Fed rate hikes has put the Change on day 0.03%
market on the defensive here into the 6400
event.
“Personally my view is not to listen to 6300
them too much because if you listened 6200
to Fed presidents espousing rate hikes in 6100
the past, you lost every time as soon as Apr 2016 May
Ms Yellen found a microphone.
“Still, you never know with this Fed, UK equities The FTSE 100 eased off a
so we will be watching [the FOMC min- two-week high and severely lagged its
utes] for discussion around ‘Brexit’, the continental European peers as miners
June meeting, any discussion on July, fell and Burberry lost 2.7 per cent after
and any other tone changes we can see.” reporting a big fall in full-year profits
Tom di Galoma, managing director at
Seaport Global, took a similar view. Eurofirst 300 index
“Fed officials can speak their mind all Change on day 0.82%
they want but when a real decision is 1380
made on rates it comes from Ms Yellen 1360
and [New York Fed president Bill] Dud- 1340
Alamy
ley,” he said. 1320
Value or growth? FT.com/video “Brexit is an event that could have far 1300
The FT’s Dan McCrum and the SWMC European Fund’s Stuart greater implications than simply the Apr 2016 May
Mitchell discuss whether to focus on cyclical or value stocks Fed moving rates a mere 25 bps.”
Indeed, sterling was up 1 per cent ver- European equities Gains for banking
sus the dollar at a two-week high of stocks helped the Eurofirst 300 recoup
Meanwhile, the latest bout of uncer- funds futures market to move to price in $1.4606 as the focus remained squarely an early fall, although Swiss hearing-
tainty over US monetary policy fol- a 16 per cent probability of a rate rise on June’s decision by the UK electorate aid maker Sonova fell 6.4 per cent after
lowed the release on Tuesday of data next month, up from 4 per cent earlier on whether or not to quit the EU. its results disappointed
suggesting that manufacturing activity this week. “EU referendum opinion polls still
had begun to rebound in the second The yield on the two-year US Treas- point to a tight race but market-implied Nikkei 225 index
quarter and that inflation had bottomed ury note touched 0.86 per cent, the measures — eg odds quoted by book- (’000) Change on day 0.05%
out. highest since April 27, before easing makers — of Brexit risk indicate a 17.5
Furthermore, several US central bank back to 0.85 per cent — still up 3 basis ‘remain’ outcome is more likely,” said
17.0
officials — including Atlanta Fed presi- points on the day and 10 bps since the Sam Hill, an economist at RBC Capital
dent Dennis Lockhart and San Fran- start of the week. Markets. 16.5
cisco Fed chief John Williams — said The dollar index, a measure of the US He said a Brexit scenario could result 16.0
they continued to see two to three rate currency against a basket of peers, was in a UK rate cut and warned that market Apr 2016 May
hikes this year. up 0.2 per cent at 94.71 — off an earlier participants should consider the conse-
There was also an emphasis from poli- three-week high of 94.99 — as the euro quences of a broad 10-15 per cent move Japanese equities Robust domestic
cymakers that the June Federal Open slipped 0.3 per cent to $1.1273 and dol- lower in the sterling exchange rate, GDP data helped trigger a volatile
Market Committee policy meeting lar/yen rose 0.5 per cent to ¥109.65. given the likely magnitude of the eco- session for the yen, which fuelled
remained “live” in terms of a rate rise. Gold was down $8 at $1,271 an ounce. nomic shock with the adjustment hap- uncertainty in the stock market
The comments prompted the Fed John Briggs, head of US rates strategy pening in weeks rather than months.
on investor optimism, with shares down
11 per cent so far this year. Trading Directory
But Mr Archambault said the
company’s shares are not “fully
capturing the company’s disruptive
potential”.
The rally in Tesla shares came as US
markets fluctuated between gains and
losses. By midday, the S&P 500 rose 0.3
per cent to 2,053.98, the Dow Jones
Industrial Average also gained 0.3 per
cent to 17,574.32 and the Nasdaq
Composite climbed 0.7 per cent to
4,749.07.
Elsewhere, Lowe’s shares advanced
more than 3 per cent to $78.62 after the
DIY chain reported stronger than
expected first-quarter profits.
Profits at the retailer rose to $884m,
or 98 cents a share, up from $673m, or
70 cents a share, in the year-ago period.
Adjusting for one-time items, earnings
of 87 cents a share topped expectations
for 85 cents. Meanwhile, sales rose 7.8
per cent to $15.2bn, ahead of forecasts.
Target shares fell 9 per cent to $66.92
after reporting a smaller than expected
increase in first quarter like-for-like
sales during a challenging period for US
department stores. The news sent
shares in rival Walmart nearly 3 per cent
lower to $63.32. Target’s soft sales
followed dismal results from Macy’s,
Nordstrom and Kohl’s.
Meanwhile, shares in Hormel Foods,
fell as much as 8.8 per cent to $35.39 and
was among the biggest decliners on the
S&P 500 after a decline in margins in its
refrigerated foods division.
made no reference to Reckitt itself.
Investors dismissed the idea that
antitrust regulators would allow a
merger between Trojan, which has
about two-thirds of the US condom
market, and Durex, the number two
manufacturer with a market share of
about 15 per cent. P&G is not an obvious
bidder, given it is in retrenchment,
while Reckitt’s interest would probably
be limited to Church & Dwight’s non-
core personal care brands such as Orajel
analgesic and First Response pregnancy
tests, they said.
Meggitt, the aerospace engineer, lost
Trading Directory
3.2 per cent to 390.7p after Panmure
Gordon downgraded to “sell”.
“We believe the two main sources of
expected profit growth — advanced
composites and aircraft braking
systems — will fall short,” it said.
Just Eat added 2.9 per cent to
417.9p after Berenberg started coverage
with a 530p price target. It argued that
Just Eat can retain its place as the
dominant takeaway ordering service as
restaurant delivery companies such as Trading Directory
Deliveroo are aiming at a premium Runs Daily
niche, which will also be where Amazon .....................................................................................................................................................................................................................................................................................................................................................................................................................
and Uber target when they enter the Classified Business Advertising
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
market.
24 ★ Thursday 19 May 2016

SMART MONEY Analysis. Commodities

Richard
Blackden
Oil price revival reaches a crossroads
The five factors that could Supply disruption
push crude higher still or
Treasury bears with curtail its near-80% rally
Oil outages
Estimated historical unplanned Opec crude oil production outages (million barrels per day)
Brent oil price
$ per barrel
real teeth and claws DAVID SHEPPARD AND NEIL HUME
120

become a rare breed As the price of crude oil reaches its high-
est level of the year, traders are split Libya Iran Nigeria Iraq Kuwait Saudi Indonesia
over whether the rally of almost 80 per Arabia 100
cent since prices bottomed in January 3.0
e’re going on a bear hunt,” begins the can keep going.

‘W best-selling children’s book of the same

name. “We’re going to find a big one.”
Three years ago, the world’s largest gov-
ernment bond market would have made
a happy hunting ground. The Federal Reserve’s decision to
call time on its multi-trillion-dollar bond-buying plan cat-
With the price of Brent, the interna-
tional benchmark, and US West Texas
Intermediate, rising strongly, five fac-
tors could dictate the next move.
Nigeria and other troubled
2.5

2.0
80

60
apulted yields upwards in a reaction so explosive it was Opec producers 1.5
quickly coined the “taper tantrum”. The latest leg-up in prices comes as out-
The yield on the 10-year note — a key benchmark for US put in Nigeria, which used to be Africa’s 1.0
corporate borrowing and home loan costs — raced higher, largest producer, has fallen to the lowest 40
from 1.63 per cent at the start of May, 2013 to 3 per cent by level in more than 20 years.
0.5
early September. It was enough to cause nose bleeds at Fed Militant attacks on oil facilities in the
HQ in Washington, where policymakers delayed any tight- Niger delta have slashed the Opec mem-
ening of policy until December of that year. On the third ber’s output to below 1.4m barrels a day 0 20
anniversary of the taper tantrum, the consensus on the — a drop of more than 40 per cent from 2013 14 15 16 2014 15 16
outlook for the $13tn Treasury market remains ostensibly its recent peak — and reignited fears of
Sources: Short-Term Energy Outlook, May 2016; Thomson Reuters Datastream
bearish. By the end of the year, the 10-year yield will be at prolonged unrest.
2.21 per cent, according to the latest survey of analysts by In Libya output remains depressed,
Bloomberg. That compares with 1.78 per cent today. while in Venezuela President Nicolás Will Saudi market into, or close to, a deficit for the Khalid al-Falih, the new oil minister, keep their operations going. That will
But scratch beneath the surface and it is clear the class of Maduro has declared a 60-day state of first time in more than two years. has promised “stability” in policymak- probably put the brakes on any price
bears in 2016 lacks the teeth and claws of 2013. Ever since emergency. Arabia raise ing, but also emphasised Saudi Arabia’s rises as companies sell forward their
the ink dried on year-end forecasts for this year, they have
Supply disruptions
output? That Saudi Arabia ability to use its “maximum sustainable production.
been playing catch up with a buoyant market in what has is perhaps Is the Opec kingpin going to raise out- capacity” to meet demand.
become a familiar pattern since the taper tantrum. Wall It is not only weak Opec countries that put? That is perhaps the biggest ques- Hedge funds
Street’s forecasting for Treasuries has proved too pessimis- are struggling to maintain output. Wild- the biggest tion dogging oil markets in the medium US shale When oil prices hit a floor below $30 in
tic, eroding the confidence of all but the grizzliest of bears. fires in Alberta have knocked out about question term. With the replacement of veteran The average annual crude oil output January, hedge funds started buying. In
“The market has been look- 1m barrels a day or more than a fifth of dogging oil oil minister Ali al-Naimi this month, from the US is forecast to fall from a peak thefirst19weeksoftheyearmoneyman-
ing for higher yields for a long Wall Street’s Canada’s production. cementing deputy crown prince of 9.4m b/d last year to 8.2m b/d in 2017, agers were net buyers of Brent crude,
time and getting beaten up on Supplies are also being hit by the markets in the Mohammed bin Salman’s control over according to the Energy Information building a near-record position equiva-
it,” says Harvinder Sian, head forecasting for lower price. Output in the US, which medium term the sector, traders are nervously watch- Administration. lentto420mbarrels.
of G10 rates strategy at Citi- Treasuries has drove the creation of the glut in the ing for any sign of higher output. Amid higher prices the agency has The move was largely replicated in
group. At the start of the year, proved too years before the price crash, has fallen Saudi Arabia, the only country with trimmed the expected drop by 100,000 WTI, where net longs rose to almost
the consensus forecast put the more than 500,000 b/d from a peak of significant spare capacity, has made b/d since prices were below $40 a barrel. 250mbarrels.
year-end yield at 2.8 per cent. pessimistic 9.7m b/d 13 months ago. clear its belief that the lowest-cost pro- Nearer $50 the outlook is less clear. But this record bullish position has
Instead the drop in yields has In China, still a big source of demand ducers should pump the most. Some oil companies have said they been trimmed in the past two weeks.
generated a total return of 5 per cent for the Barclays growth, output is set to slip more than But after raising output from 9.6m b/d could restart drilling above $50 a barrel. Some funds have been taking profits
10-year Treasury index so far. 3 per cent, or 140,000 b/d, this year, in late 2014 to a record 10.6m b/d last But the impact of any price rise may after the huge run-up. That has sparked
But, getting it wrong for years does not fully explain the according to Opec’s monthly report. June, its output has been steady. Since come quicker through the futures mar- caution in case a trickle of profit-taking
current bearishness towards Treasuries that feels luke- Disruptions, which analysts put at August 2015 production has averaged ket. Banks will ask companies to hedge should turn into a flood, exerting selling
warm. Fed policymakers have made clear the so-called more than 3m b/d, have helped put the 10.2m b/d with little fluctuation. as soon as the price is high enough to pressure on the market.
neutral interest rate in the US — or one compatible with
stable inflation and an economy at full employment — is
lower than it was before the financial crisis. That has
helped anchor bond yields at lower levels, as has the Commodities
absence of inflationary pressures after years of expansion.
The past 12 months has injected a powerful new tailwind
for Treasuries: negative interest rate policies from the
Bank of Japan and the European Central Bank. With the
Crude storage futures
universe of negative-yielding sovereign bonds now almost
$10tn, according to an estimate from rating agency Fitch, a
demand picks up pace
10-year Treasury yield at close to 1.8 per cent represents a
screaming buy to plenty of investors.
The pace at which Japanese investors gobbled up Treas- GREGORY MEYER tage of the storage futures
uries in March, for example, was 16 times the monthly NEW YORK contracts is that they allow
average since 2005, according to data from the Japanese With crude oil piled up “you to freely trade some-
Ministry of Finance released last week. European inves- around the world the space thing that previously was not
tors bought €148bn of foreign sovereign debt in the 12 inside terminals is now a hot freely traded,” said Peter
months to February, accelerating an exciting trend. commodity. Keavey of CME Group, the
Analysts at Goldman Sachs, which this month cut their Chicago-based exchange
year-end forecast for the 10-year yield to 2.4 per cent from The market for crude oil operator that lists them.
2.75 per cent, argue the latest chapter in the BoJ and ECB’s storage futures has been “The value may have been
radical stimulus policies “have largely contributed to expanding since last year’s known, but it wasn’t trans-
depressing the bond premium globally”. launch. Instead of giving parent.”
And if that wasn’t enough, recent history suggests the buyers oil, the futures con- Market activity is centred
final stretch of the US presidential campaign may yet tracts confer the right to on auctions held on the first
prove helpful to the market. Over the last 12 White House store it in caverns on the Gulf Tuesday of each month. This
races, the 10-year yield has recorded a median drop of 37.4 of Mexico coast. month the auction sold 6.2m
basis points in the 100 days before the vote, according to Open interest, or the barrels of capacity at Loop.
analysis from Bank of America Merrill Lynch. number of contracts out- The price of the storage
All of which is contributing to a sense — even if it’s not standing, has increased to futures market has been vol-
fully reflected in the Wall Street consensus on yields — that the equivalent of 23.5m bar- atile, jumping from $1 to
Treasury buyers have little to fear for the rest of the year. rels of capacity, more than $1.85 a barrel in April, then
And that is worrying some. Pointing to the fact that core doubling since the beginning falling to 90 cents in a single
inflation in the US has stayed above 2 per cent for the past of the year. session.
six months, Scott Mather of Pimco expects it will not take Oil companies, refiners The big swings came as
much more for the Fed to raise rates again. “We’re not and banks have been trading crude imports poured into
looking for anything like the taper tantrum, but a move to the contracts, said Bo Collins, Louisiana, filling tanks.
a range of 2 to 2.25 per cent,” on the 10-year yield he says. co-founder of Matrix Mar- At the oil terminal in Cush-
Even those who have been waving a “buy” flag over kets, which helped develop ing, Oklahoma — a delivery
Treasuries for months are growing concerned that under- them. “The only crowd that’s point for benchmark crude
lying sentiment risks becoming too one-sided, inducing sort of missing from the mix futures — traders can gauge
complacency. “It’s looking a bit crowded,” says Steve is the HFT [high-frequency the price of storage by look-
Major, head of fixed income strategy at HSBC, which fore- trading] crowd,” he said. ing at prices for oil delivered
casts the 10-year yield will end the year at 1.5 per cent. The contracts were intro- in different months.
Particularly one-sided sentiment in any market typi- duced as a supply glut caused Late yesterday, December-
cally offers a good opening for an investor wanting to take oil stocks around the world delivered West Texas Inter-
the other side of the trade. For Treasuries right now, it will to swell, driving up demand mediate crude at Cushing
take a particularly hardened bear to seize it. for tanks. sold for around $1.50 a barrel
Buyers get the right to more than July-delivered
richard.blackden@ft.com store high-sulphur “sour” futures. The premium has
crude at the Louisiana Off- shrunk this year on expecta-
shore Oil Port (Loop), which tions the oil glut will abate.
contains one of the biggest Overall US capacity for
terminals in North America. storing crude oil has
In the Gulf coast region increased by nearly 90m bar-
More comment and data on ft.com that includes Loop, crude rels in the past four years,
stocks have risen to records bringing the total to more
of more than 280m barrels, than 550m barrels as of Sep-
Y Fast FT Our global Bryce Elder for the daily up by 15 per cent from the tember, according to the
team gives you market- Markets Live session at beginning of the year. Energy Information Admin-
moving news and views, 11am. ft.com/alphaville Nationwide, oil stocks have istration.
24 hours a day, five days approached their 1929 Crude has also been sitting
Y Podcast The Hard
a week. ft.com/fastft record but were expected to offshore, with global vol-
Currency podcast takes a
Y Alphaville Our look at what is driving
decline in data due out today. umes of crude held on tank-
irreverent financial blog. the global currency
The market for oil tank ers growing by 10.3m barrels
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leases is mostly opaque, with to 88.9m in April, the most
terms closely guarded by since June 2015, the Interna-
counterparties. The advan- tional Energy Agency added.