Professional Documents
Culture Documents
Financial Times USA 28 July 2023
Financial Times USA 28 July 2023
Financial Times USA 28 July 2023
00
Fed by raising
The planet is facing a new era of
“global boiling”, the UN’s head has
warned, as forecasts showed that
July is expected to be the hottest
month ever recorded.— PAGE 4
to 22-year high
energy markets of Russia’s war in
Ukraine waned.— PAGE 5
INTERNATIONAL
Wagner chief
Moscow raises maximum conscription age in surprise
Limit extended by three sory military service. The move is part
of the Kremlin’s plan to increase the
sia also launched further missile strikes
on Black Sea ports in what western offi-
ing on reality. Conscripts are not sup-
posed to be sent to fight in Russia’s inva-
example by introducing caveats to pre-
vent fathers of children with disabilities
appearance
years to 30, increasing
numbers to be called up
country’s armed forces, announced
soon after the start of its full-scale inva-
cials said was an attempt to cripple
Ukraine’s grain industry and disrupt
sion of Ukraine, though there have been
many reports of this happening.
from being recruited, as “protectors of
draft dodgers”.
at Russia’s
POLINA IVANOVA — BERLIN
ROMAN OLEARCHYK — KYIV
sion of Ukraine in February last year, as
Moscow prepares for a long-term con-
flict. The measure reflects a broader
global food markets.
The number of Russian army recruits
depends on presidential orders issued
The army has recently focused on
expanding its ranks of contract soldiers.
Others have joined more independent
The bill was also expected to raise the
minimum conscription age from 18 to
21. But that aspect was dropped at the
Africa summit
militarisation of Russian society. ahead of each conscription round. fighting forces, such as the Wagner para- last minute. Kartapolov claimed this
Russia is raising the maximum con- If signed into law by President These occur twice a year, in spring and military group. was in response to popular demand. MAX SEDDON — RIGA
ANDRES SCHIPANI — NAIROBI
scription age by three years, widening Vladimir Putin, the bill would come into autumn, with 120,000-150,000 usually The head of the lower house’s security Other reforms introduced include a
the pool of men that can be called up as force in January and broaden the called up each time. committee has described the bill raising ban on leaving the country for any men Yevgeny Prigozhin, founder of the
fighting intensifies in Ukraine’s south- number of potential conscripts by more Late last year the defence ministry the conscription age as preparation for mobilised to serve in Ukraine or con- Wagner paramilitary group, has
ern regions. than 2mn men by 2027, according to announced plans to increase Russia’s “general mobilisation”. Andrei Karta- scripted to the regular army. appeared during a Russia-Africa sum-
A bill that passed through a key secu- projections by independent demogra- regular army from about 1mn men to polov, known for his fiery rhetoric, said: Hundreds of thousands of Russians mit in St Petersburg, despite agreeing
rity committee in the upper house of pher Alexey Raksha. 1.5mn, including both conscripts and “Now it is already beginning to smell fled the country in September after to go into exile following his failed
parliament yesterday extends the upper The move came as fighting intensified those who sign up voluntarily as con- like a big war ahead.” Putin announced that 300,000 would be mutiny last month.
age limit to 30. Currently, men aged 18 in Ukraine’s southern front lines, partic- tract servicemen, though analysts He criticised parliamentarians aim- mobilised for war.
to 27 are eligible for one year of compul- ularly in the Zaporizhzhia region. Rus- doubt that either figure has much bear- ing to soften aspects of the bill, for Additional reporting by Felicia Schwartz The warlord’s continued presence in
Russia suggests that Prigozhin remains
an important part of the Kremlin estab-
lishment, with Vladimir Putin reluctant
Counteroffensive. Russian defences or unable to exclude him.
Prigozhin was photographed shaking
whether Ukraine will be able to main- Russian-claimed control 100 km etly committed in the south, according “We liberate 1-2 sq km of our territory some countries and political spin-doc-
tain it for long, or produce the kind of Assessed Russian to Sultan, a commander in the 78th Reg- every day,” Colonel Vlad Voloshyn, a tors to work in several others.
breakthrough that would bring Moscow advance Kyiv iment, a special forces unit, and other military press officer, said on a visit to a CAR has been the major showcase for
Kharkiv
to the negotiating table. There are con- Regions annexed by soldiers who spoke near the front line in unit operating Soviet-era BM-21 Grad Wagner’s efforts on the continent.
Russia* KHARKIV
cerns about how quickly Ukraine is ex- LUHANSK the southern region of Zaporizhzhia. multiple-launch rocket systems near Touadéra owes his survival to the Wag-
pending its dwindling supply of artillery
Under Russian control UKRAINE Two soldiers in early operations said Soledar, north of Bakhmut. ner fighters who arrived in 2018 to
Ukrainian-claimed Dnipro
shells, and about the time it will grant counteroffensive DONETSK
'RQHWVN
uhansk they faced stiffer resistance than expec- Some Russian officers have lamented instruct his army and helped thwart an
Russia to dig in and train fresh forces. City under Russian control ted from the Russians, resulting in the Ukraine success in the area and the ina- attempted rebellion two years later.
But in the short term, the tactic has Nuclear power plant ZAPORIZHZHIA losses of US Bradley fighting vehicles bility of their own troops to respond to CAR has since become a vehicle for Rus-
reduced Ukrainian losses. Casualties and western engineering equipment. the artillery fire in kind. “The enemy’s sia’s African ambitions, according to
Odesa
and the number of prized western battle Updated 11:30am GMT Jul 25. Ukrainian KHERSON They also said many “inexperienced” [artillery] crews do not change posi- western diplomats in Bangui.
tanks and infantry fighting vehicles lost counteroffensives before May 1 2023 are
not shown Sea of Azov RUSSIA troops were “unprepared” for the com- tions for hours, working with impunity Touadéra has called a vote this week-
in battle are down compared with the * These regions and Crimea are not plex assault despite receiving training. on our front line, and we are not able to end to override a constitutional bar on
recognised by the international community, CRIMEA UKRAINE
first two weeks of the counteroffensive, Crimea was annexed by Russia in 2014 Black Sea Kerch The troops described “chaos” in the suppress them,” wrote Alexander Khod- running for a third term, a move sup-
while Ukraine has made small but Source: Institute for the Study of War, AEI’s early days of the operation: friendly fire akovsky, a Russian commander in ported by Moscow, said former senior
steady gains. Critical Threats Project, FT research and attacks that quickly evolved into Donetsk region, on Telegram. members of the constitutional court.
Cost of living
INTERNATIONAL
INTERNATIONAL
GLOBAL INSIGHT
Rising temperatures
SUMMIT
T
as forecasts showed that July is expected viously observed values for the time of mate Change has found. Large areas of Europe, the US and
to be the hottest month ever recorded. the year” since May, said Copernicus. It is not the first time that the global António Asia are roasting this summer, with
“The era of global warming has Copernicus director Carlo Buon- mean temperature has temporarily Guterres records broken in places including Xin- here cannot be many international summits
ended; the era of global boiling has tempo said it was “more probable than crossed the 1.5C threshold for a month, jiang in China, which hit 52.2C, and where a head of government stays away for
arrived,” António Guterres, UN secre- not” that the next few months would however, with instances occurring in Rome in Italy, which hit 41.8C. In the US, fear of being arrested for war crimes, but the
tary-general, said yesterday. also break temperature records for the previous years including 2016 and Phoenix has suffered 26 consecutive Brics grouping has managed it.
The global average temperature this time of year, adding that the hottest 21 2020, according to Copernicus. days of more than 43.3C, a record. Vladimir Putin will skip next month’s meet-
month has at times been about 1.5C days recorded had all occurred in July. Scientists say that extreme weather The simultaneous heatwaves fuelled ing of Brazil, Russia, India, China and South Africa in
higher than it was before human-in- “All this is entirely consistent with events such as floods and heatwaves will by a specific jet stream pattern have Johannesburg because the hosts, as a signatory to the
duced warming set in, according to the predictions and repeated warnings. The become more frequent and intense with sparked wildfires in Greece and led to International Criminal Court, would have to detain him
EU’s Copernicus Climate Change Serv- only surprise is the speed of the change. every fraction of a degree of warming. heat-related fatalities in countries under a warrant for Russia’s activities in Ukraine.
ice. The first three weeks of July were Climate change is here. It is terrifying. The World Meteorological Organisa- including the US, Mexico and Italy. It is unlikely he will miss much policy substance. Apart
the warmest such stretch on record, And it is just the beginning,” said tion yesterday confirmed its forecast of Opinion see Letters page from a lot of defiant rhetoric against the rich world, one of
the main themes will be barely hidden tension around the
role of China.
Brics nations look seriously lopsided. Invented by Gold-
South America. Decarbonisation man Sachs economists in 2001 as a marketing tool, the
grouping became a political entity when the four countries
(South Africa joined later) held their first summit in 2009.
Brazil aims high with green transition drive Dan Ciuriak, a former deputy chief economist at Can-
ada’s trade department and now a senior fellow at the Cen-
tre for International Governance Innovation think-tank,
notes that only a fortuitous confluence of events in the late
1990s and 2000s made the group look vaguely equal, even
in aspiration.
Initiative envisages marriage While China’s low-cost manufacturing was benefiting
of environmental goals from Deng Xiaoping’s economic reforms, Russia and Brazil
were emerging from economic chaos (Russia after the fall
and economic development of communism, Brazil from its stabilisation of the cur-
rency after 1994) to ride the commodities boom of the
2000s. India had a burst of growth after the economic lib-
BRYAN HARRIS — SÃO PAULO
eralisation that followed a balance of payments crisis in
Brazil is to launch a green transition 1990-91. South Africa was
plan requiring hundreds of billions of boosted by the end of
dollars in public and private invest- apartheid in 1994.
China’s support
ments that officials hope will become But during the 2000s for other Brics
the signature policy of President Luiz and 2010s only China
Inácio Lula da Silva’s third term. m a n a g e d t o m ove
members is
The package, to be unveiled in August towards rich-world status not exactly
or September, would encompass about by adopting technological
100 initiatives including carbon trad- advances to become a
unconditional
ing, the bioeconomy and infrastructure knowledge-based econ-
adaptation across six policy areas, said omy. The others remained stuck in low-growth models
officials co-ordinating the plan. dependent on commodities, their policy apparatus ham-
“The idea is to have the most ambi- pered by political dysfunction and corruption.
tious plan to decarbonise an economy in The Chinese economy now rivals that of the US — it is
the world, at least among developing larger in purchasing power parity terms — and its size and
countries,” said a senior official. income fund a belligerent foreign and military policy.
Word of the package comes as Brazil The idea of a new Brics currency, mooted in particular
appears to have slowed the rampant by Brazilian president Luiz Inácio Lula da Silva, is essen-
deforestation of the Amazon during the tially fantasy: the renminbi is the only one of the five inter-
previous administration of Jair Bol- national currencies with any significant overseas role. The
sonaro, the far-right president. Official Tree battle: Among the first initiatives will be leg- ucts and industries based on the diver- The government estimates the pack- Brics nations’ New Development Bank has so far extended
data suggests destruction of the rainfor- under Luiz islation for the creation of a regulated sity of Brazil’s biomes. Such bioecon- age will be worth hundreds of billions of $32.8bn in loans, while China has lent about $1tn bilater-
est was more than 33 per cent lower in Inácio Lula da carbon market, which will be sent to omy initiatives have long been champi- dollars over the next decade. But it says ally. Its Belt and Road Initiative not only builds infrastruc-
the first six months of this year than the Silva, seen with Congress in the coming months. oned by environmentalists. Pedro the bulk of that will come from partner- ture but also aims at trade and political alignment.
same period last year. indigenous “We’re very confident that it’s not Côrtes, professor at São Paulo univer- ships with the private sector and private Nor is China’s support for other Brics members exactly
Brazil is the latest country to launch a women last year, going to be very tough to approve it in sity’s energy and environment institute, investment. In the areas that require unconditional. Even leaving aside its longstanding military
bold programme to green its economy. the rampant Congress because the sector that is most said: “Brazil needs to adopt a proactive public money, “we are working on mak- rivalry with India, China has given Putin diplomatic cover
US president Joe Biden’s Inflation deforestation directly affected — industry — is sup- stance that associates environmental ing tweaks in existing funds, so that it for Ukraine, but is in effect charging for it by buying Rus-
Reduction Act pledges hundreds of bil- of the Amazon, porting the carbon market,” said an offi- preservation with economic develop- will fit in our budget. We don’t want to sian oil below market price. Geopolitically, China also
lions of dollars in subsidies and tax below, has cial at the finance ministry. ment. For example, biotechnology break our fiscal rules,” one official said. unbalances the club. It is in an economic, technological and
breaks to encourage companies to slowed The plan envisages the redeployment could use national flora for the develop- Sérgio Margulis, chief economist of strategic rivalry with the US, while other Brics members are
Christophe Gateau/picture-
develop green technology and create alliance/dpa/AP; Ueslei
of federal funds for research and devel- ment of pharmaceutical products.” Convergência pelo Brasil, a business trying to stay on good terms with Brussels and Washington.
jobs. The EU is also relaxing state aid Marcelino/Reuters opment to focus on green technologies It is a reality acknowledged by offi- roundtable, said the package was China mooted the idea of expanding Brics last year but
rules to unlock more government and the expansion of technical educa- cials, who admit that the elimination of “timely” but warned many initiatives other existing members including Brazil seemed distinctly
spending on the green transition. tion in relevant areas, such as biotech- illegal deforestation and gold mining in were likely to face political obstacles. reluctant. If nations enter who are beholden to China
Some activists are cautious about nology in the rainforest or renewable the Amazon requires new opportunities “It is a difficult political moment with through ties of debt or investment, Brics will look ever less
Lula’s environmental commitment at a energy in the sunny, gusty north-east. in the impoverished region. The finance a behind-the-times Congress and an like a steering group for the emerging world and more like
time when Petrobras, the state-control- It will target the development of prod- ministry official said: “We have to put agricultural sector that is thriving but a fan club for an aspiring hegemon.
led energy group, is increasing oil and together economic opportunities also very conservative in relation to the If the Brics remain a pressure group united by resent-
gas production, but many investors because otherwise it won’t be sustaina- environment,” he said. ment against overweening US power through sanctions or
have lauded the change in attitude. ble in the medium and long run.” But Rafael Dubeux, an adviser at the military intervention, they can be cohesive, if not particu-
“We are already seeing specific oppor- With more than 90 per cent of its elec- finance ministry, is optimistic the larly constructive. If the group tries to run the show itself,
tunities tied to the environment receive tricity generated by clean energy, nota- agenda would succeed, saying it was not its disparate economic prospects and strategic interests will
more international investment,” said bly hydropower, officials want Brazil to only pro-environment but pro-develop- become a powerful centrifugal force. As Ciuriak points out,
Daniel Rummery of Brunel Partners, develop as a hub for green technologies, ment. if you have a collection of emerging markets whose ambi-
which advises foreign investors. “More such as renewable hydrogen. “We’re still a poor country . . . and we tion is to become advanced economies and only the largest
significant is how it changes the mood The official said: “Our challenge is to do have to make it politically feasible to one is really on track, you do not have a cohesive club.
music internationally that Brazil is no have more stages of the value chain pro- show to the population that it’s also It is now established wisdom to say the Brics grouping
longer an environmental pariah.” duced in Brazil. We want to export the going to bring opportunities in terms of has come a long way since it first got together as a political
Lula officials hope the package will technologies necessary to produce well-paid jobs and productivity unit. Certainl its rhetoric and ambition has. The disjointed
continue beyond his presidency, with a renewable hydrogen and [other] tech- increases,” he said. and unbalanced reality has a lot further to go.
view to fulfilling international commit- nologies for the decarbonisation of our “The merger of these two objectives is
ments to climate neutrality by 2050. economy.” very central to the plan.” alan.beattie@ft.com
US growth accelerates 2.4% despite rate rises Niger army backs coup to avoid ‘bloodbath’
NICHOLAS MEGAW — NEW YORK growth and spend, albeit with more cau- tion to the Fed’s 2 per cent target. Fed DAVID PILLING — AFRICA EDITOR with Bazoum, who is still believed to be endorsement of the coup would appear
tion than in the past.” chair Jay Powell said his “base case is that trapped in the basement of his resi- to end those hopes.
Economic growth in the US was Niger’s army has come out in support
The data comes a day after the US cen- we will be able to achieve inflation mov- dence, said Omar Tchiani, the head of “The situation is still fluid but the
stronger than expected in the second of this week’s coup in a move it said was
tral bank raised its benchmark interest ing back down to our target without the the presidential guard, had threatened window is narrowing,” said Peter Pham,
quarter of 2023, as activity proved intended to prevent “a bloodbath”
rate to the highest level in 22 years as kind of really significant downturn that to kill the president and his family if the a former US government envoy to the
resilient in the face of the Federal between different military factions and
part of its effort to tame inflation. results in high levels of job losses”. army “fired a shot” against his men. Sahel region. “The momentum has
Reserve’s campaign of aggressive inter- to protect the life of the ousted presi-
The consumer price index in the US Eric Winograd, senior economist at The coup in the west African country swung to the putschists.”
est rate rises. dent and his family.
has fallen from a peak of more than AllianceBernstein, said: “To me the began earlier on Wednesday when Tchi- Demonstrators, some chanting pro-
The world’s largest economy grew 9 per cent in June 2022 to 3 per cent last most important signal out of [yester- General Abdou Sidikou Issa, the chief of ani moved against the pro-western military slogans and a few brandishing
2.4 per cent on an annualised basis day’s data] is that households continue staff, said the army had decided to Russian flags, came out on the streets of
between April and June, according to to consume . . . And I don’t think we endorse the coup against President the capital, Niamey, yesterday. The pre-
preliminary figures released by the Jay Powell: should expect the consumer to weaken Mohamed Bazoum “to avoid a deadly
‘The situation is fluid but vious evening, pro-democracy protest-
aims to move
commerce department yesterday. inflation nearer until the labour market does.” confrontation between the various the window is narrowing. ers had been dispersed when the presi-
That marked an acceleration from a Outlook upgrades and upbeat com- forces and a consequent potential dential guard fired shots in the air.
2 per cent growth rate in the first quar-
to target without
a significant mentary from several US companies bloodbath threatening the security of
The momentum has Pham said ousting Bazoum put at risk
ter and was well above the 1.8 per cent downturn this week have also painted a picture of the population”. swung to the putschists’ the entire US and French strategy for
predicted by economists. a resilient domestic consumer. His statement yesterday marked a fighting a jihadi threat across the Sahel,
Consumer spending growth slowed month, while the unemployment rate McDonald’s chief executive Chris sharp reversal of an earlier position in Bazoum and confined him to his home. a strip of semi-desert that runs beneath
after an unusually strong start to the remains close to record lows and con- Kempczinski said yesterday that the which the army had sworn allegiance to Bazoum sought to rally support for a the Sahara where affiliates of Isis and al-
year but the reduction was more than sumer confidence has improved. fast-food chain had not observed a “dra- Bazoum, who was democratically fightback, insisting in a Twitter post yes- Qaeda have made significant gains.
offset by strong business investment. The combination of recent data has matic” change in the US consumer. elected in 2021. That changed after a terday that “hard-won achievements After military coups in Mali and
“We’re seeing some encouraging signs raised hopes that the central bank will “Sentiment is actually improving a little group of special forces led by Colonel will be safeguarded”. Burkina Faso, where the jihadis are
of resilience, especially when you look achieve the rare feat of a “soft landing” — bit but we’re certainly still far off of Amadou Abdramane, went on televi- A second person who spoke to the most entrenched, the US and Europe,
at private sector demand,” Gregory bringing inflation under control without where we were back in 2019,” he said. sion late on Wednesday to declare that president on Wednesday said Bazoum led by former colonial power France,
Daco, EY Parthenon chief economist, significant economic damage. But others The S&P 500 was up 0.7 per cent in they were taking over and suspending still harboured hopes that the army had bet heavily on Niger as their centre
said. “Whether it’s consumers or busi- are concerned that the economy’s resil- morning trading while the Nasdaq Com- the constitution. would come to his rescue and force the of operations to halt the spreading
nesses, there’s still a desire to drive ience will make it harder to bring infla- posite advanced 1.2 per cent. One person who has been in contact presidential guard to stand down. Issa’s insurgency, said Pham.
Friday 28 July 2023 ★ FINANCIAL TIMES 5
Pain in Spain Siemens Energy’s turbine travails deal latest setback to wind sector hit by rising costs and competition y COMPANIES
Shell and Total Beauty spots L’Oréal on the lookout for further
acquisitions after $2.5bn Aesop deal, chief says
Coutts chief
steps down
profits shrink after furore
over Farage
after fall in oil SIDDHARTH VENKATARAMAKRISHNAN
LONDON
Legal Notices
I
apps has been the most confident asser- services, he suggested, helping users
tion yet about the coming generative AI produce better content and increasing
s artificial intelligence best seen as a wave. their interaction with chatbots.
business accelerant — something But if large language models become a To support such ambitions, Meta has
that brings new, “smart” features to core technology on which many future produced a family of open-source lan-
existing products and provides a lift tech products and services depend, it guage models called Llama. Amazon is
to tech companies’ revenues? suggests control of a cutting-edge LLM developing its own models, called Titan,
Or is it a disruptive new platform, will be a prerequisite for entry into and Bloomberg reported last week that
with the potential to change the balance tech’s big leagues. Microsoft, through its Apple has also joined the race.
of power in the tech industry? close tie to OpenAI, and Google are the Zuckerberg told Meta’s investors this
That question has been hanging in the furthest ahead in developing this tech- week that he didn’t believe there would
air ever since ChatGPT burst on to the nology. Can others be “one single AI that people interact
scene. Generative AI — the type that can match them as Earnings calls at Microsoft, with”, and that creators and others
compose an essay for homework or pro- they race to build would prefer different tools for different
duce a picture on command — promises ever-larger AI Alphabet and Meta were purposes. AWS boss Adam Selipsky
to bring a valuable dimension to many models — and what beset by questions about made the same point in an interview
software products. How much more will it mean if they with the FT. There won’t be “one model
useful would the application you are can’t? when generative AI to rule them all”, he predicted.
using be if it could anticipate your next Apple, Amazon additions will lift revenue It is too early to judge the outcome. In
need and produce a creative suggestion? and Meta have the early days of internet search it was
By offering a whole new way of inter- tended to look at machine learning as an also widely believed that a number of
acting with computers, however, the important ingredient in their products, rival services would compete, with spe-
technology could also become a plat- but still only an ingredient — something cialised search engines filling different
form in its own right. Many applications to improve a recommendations system niches in the market. Instead, a single,
already plug into OpenAI’s large lan- or provide analytical tools to advertis- general-purpose search service ended
guage models, drawing on them to add ers. They are now hurrying to give AI a up dominating. OpenAI’s bet on build-
AI features. Historically, tech platforms more central place in their operations. ing ever-larger language models is that
such as this have tended to be very con- Amazon Web Services seems to have the same will be true of AI.
centrated — whether that involves the been caught flat-footed by Microsoft, its If Wall Street’s optimistic predictions
software behind laptop computers closest rival in cloud computing, when it prove right, it won’t be long before the
(Windows or MacOS), smartphones comes to running generative AI serv- first fruits of the generative AI boom
(iPhone or Android) or browsers ices. It’s still early days, but Microsoft start to show up in tech companies’
(Chrome or Safari). How many of the predicted that AI would add more than earnings reports. The ultimate impact
so-called AI “foundation models” will 2 percentage points of growth to its on the tech industry will take far longer
the market support? cloud business this quarter. AWS is now to become clear.
Investors, for now, are very much moving fast to catch up — this week it
focused on the idea of AI as an acceler- announced a flurry of developments, richard.waters@ft.com
6 ★ FINANCIAL TIMES Friday 28 July 2023
Banks Technology
Meta says AI
BNP faces sanctions over messaging lapses bet and rejig
Resolutions lined up with compliance with requirements to keep sanctions were imposed, paying a total restructuring costs, profits would have model that is helping it ride out some of have paid off as
US regulators as quarterly
results beat expectations
records linked to the “use of unap-
proved electronic messaging platforms
for business communications”.
of $45mn to the SEC and CFTC this year.
Goldman Sachs, Morgan Stanley and
Barclays agreed collectively to pay more
risen from a year earlier.
BNP’s share price rose 3 per cent yes-
terday.
the highs and lows of historically ele-
vated rate rises.
In the second quarter, BNP benefited
revenues climb
BNP, which reported forecast-beating than $1.8bn in fines last year. Operating expenses were up 1.6 per from underlying momentum across
SARAH WHITE — LONDON second-quarter results yesterday, also BNP said in its filing yesterday that its cent from a year earlier, less than ana- businesses, including in its Arval car HANNAH MURPHY — SAN FRANCISCO
disclosed a €125mn charge linked to “proposed resolutions” had yet to be lysts had expected, while its cost of risk leasing unit and in its European busi-
Meta shares rose yesterday after it
BNP Paribas is the latest bank to face US unspecified litigation. It declined to con- finalised. fell just over 9 per cent to €689mn, nesses including in Italy.
reported its first double-digit revenue
regulatory sanctions over its record- firm whether it was linked to the mes- The bank beat profit forecasts in the reflecting a low level of provisions set Like its Wall Street peers, the French
growth since 2021, as chief executive
keeping of electronic messages used by saging probes, which shook the banking quarter as charges on bad loans fell and aside on souring loans. bank had a mixed quarter in its corpo-
Mark Zuckerberg said the company’s
staff to discuss business matters, follow- industry after investigations began to it kept a tight leash on costs, countering RBC analyst Anke Reingen said that rate and investment bank, which posted
costly bet on artificial intelligence was
ing fines across Wall Street. emerge last year. a mixed performance in its investment against a backdrop of high inflation in a 2.3 per cent fall in revenues. But BNP
showing signs of paying off.
The eurozone’s biggest bank by mar- Lenders have since cracked down on bank as earnings from debt trading fell. the eurozone, a “beat on better cost con- did well in bond issuance, sustaining a
ket value said yesterday that it had unauthorised use of encrypted messag- It posted a near 5 per cent drop in net trol is rare and reassuring”. much stronger performance in what it The rebound comes as Zuckerberg has
reached “proposed resolutions” with ing services such as WhatsApp and Sig- profit from a year earlier to €2.8bn, Under chief executive Jean-Laurent calls its global banking unit. sought to revive Meta from a period of
the enforcement divisions of the Securi- nal, while some bankers have been dis- while revenue was down 1.5 per cent to Bonnafé, BNP has sought to position BNP’s return on tangible equity sluggish growth, wider macroeconomic
ties and Exchange Commission and the missed. HSBC fired a trader last year for €11.4bn, though it still beat analysts’ itself as Europe’s go-to corporate and reached 13.6 per cent in the second woes and investor concern over the
Commodity Futures Trading Commis- using messaging services inappropri- expectations on both counts. It said that investment bank, outside dominant US quarter, hitting its longer-term goal of metaverse. Like many of its Big Tech
sion, which had been investigating its ately. It was among the banks on which without charges linked to litigation and rivals. It has vaunted a diversified above 12 per cent to 2025. peers, Meta has seized on wider market
enthusiasm about emerging AI technol-
ogy to invest in the space.
Zuckerberg has also led a significant
Technology restructuring in recent months, includ-
ing a flattening of the management
Nestlé expects prices to ease in second half VW cuts delivery forecast after China sales fall
MADELEINE SPEED — LONDON close to the fastest pace in more than remained “limited” despite the rising PATRICIA NILSSON market share in the battery segment. However, it has struggled to gain
three decades. cost to customers. Analysts at Deutsche Bank said the share in the electric market; the equiva-
Nestlé has said price rises will start to Volkswagen has cut its global delivery
Speaking to analysts yesterday, chief Reckitt Benckiser and Unilever this investment suggested that the company lent figure for the rapidly growing bat-
ease in the second half, as the KitKat forecast for the year as sales drop in
executive Mark Schneider said price week reported lower volumes in “has partially admitted defeat with tery vehicle segment is 4 per cent.
maker raised sales forecasts on better China, its biggest market.
rises would slow in the second half. Europe, where consumers are battling regard to its current EV products” in Blume, who has tried to restructure
than expected performance in the six
“It’s safe to say pricing won’t reach the the cost of living crisis. Despite strong sales in the first half, the China, relying on its relationship with the group since taking over last year,
months to the end of June.
same levels as [the first half], but it’s The Swiss business said that lower second-largest carmaker has been Xpeng to revive sales. said the company had to “fulfil the
The biggest food company reported a clear that in the overall macro [infla- volumes were also driven by actions it forced to lower its delivery ambitions VW chief executive Oliver Blume, expectations of our Chinese customers”.
dip in sales volumes in interim results took last year to shed some underper- because of weakness in the country. aware of the need to raise the company’s The “initial stage” of the carmaker’s
yesterday, in a sign that customers were forming products and varieties in its Finance boss Arno Antlitz said a 1 per game in China, said yesterday that VW’s relationship with Xpeng will focus on
resisting rising food and drink prices.
Consumer goods groups portfolio. cent drop in Chinese car deliveries in the next capital markets day would be held jointly developing two VW-branded
Nestlé posted a drop in real internal have reported falling It warned in April that the measures first half had forced the group to lower in Beijing next April and focus on the electric vehicles, one of which is
growth — a proxy for sales volumes — of could have a “net negative impact” for its delivery target for 2023. company’s strategy in the country after planned to hit Chinese roads in 2026.
0.8 per cent in its first half, having raised
volumes and in some cases the first half, and “a slightly positive “We have a mixed picture on deliver- a poll of analysts and investors showed VW’s investment in Xpeng comes
prices to cope with higher production have lost market share impact” for the full year 2023. ies in the first half,” he said, stressing its biggest market to be a concern. with an “observer” role on the Chinese
costs and hived off underperforming However, Nestlé said that organic that the revision was based on China, as The group, which other than its VW company’s board.
brands. tionary] environment, higher prices sales during the period rose 8.7 per cent, growth in Europe and North America brand includes companies such as Por- Separately yesterday, Renault
The fall was bigger than the 0.6 per would still be needed.” beating analyst consensus of 8.1 per had been strong. sche and Audi, was one of the first west- announced that higher prices, new
cent forecast by analysts and followed a Consumer goods companies have cent. The improvement was led by dou- The forecast of about 9mn deliveries ern companies to enter the Chinese models, and the fruits of cost-cutting
0.5 per cent dip in the first quarter. reported falling volumes and in some ble-digit growth in its Purina petcare in 2023 compared with its original aim market in the late 1970s and has estab- had pushed its profits to records in the
The maker of Smarties and Nescafé cases have lost market share, suggesting range, infant nutrition and confection- of about 9.5mn comes a day after its lished itself as one of the country’s mar- first half.
raised prices 9.5 per cent in the first six that shoppers are balking at consistent ery, with strong sales of KitKat. announcement of a $700mn investment ket leaders. Mercedes-Benz, which has moved to a
months of the year, down only slightly price increases. Nestlé expects full-year organic sales and 5 per cent stake in Chinese electric Its share in the country for combus- strategy of selling more premium cars,
on a 9.8 per cent increase in the first Nestlé said yesterday, however, that growth in a range of 7-8 per cent, up car group Xpeng. tion engine vehicles is 19 per cent, on Wednesday raised its full-year guid-
three months of the year, which was consumer “demand elasticity” had from a range of 6-8 per cent. The move was aimed at boosting according to Deutsche. ance.
Friday 28 July 2023 ★ FINANCIAL TIMES 7
Airlines
Wall St banks
Corporate fundraising buoyant face prospect
of tougher
despite impact of US rate rises requirements
on capital
COLBY SMITH — WASHINGTON
STEPHEN GANDEL — NEW YORK
Equities Commodities
St James’s Place shares slide on lower Big mining groups warn of weaker
inflows and plan to cut customer fees price outlook for natural resources
SALLY HICKEY — LONDON are acting in customers’ best interests. 0.5 per cent annually to cover the cost of HARRY DEMPSEY AND LESLIE HOOK half core earnings of just over 40 per the west and accelerating supply for sev-
St James’s Place chief executive their adviser. cent to $5.1bn. eral metals.”
St James’s Place is to lower fees on a Some of the world’s largest mining
Andrew Croft said the rules had been They are also charged an initial prod- This occurred off the back of a 19 per But they saw enough of a shift point in
broad range of investment products, companies have become increasingly
the “catalyst” for it to implement the fee uct fee of 1.5 per cent and an additional cent drop in the price of its commodities China’s rhetoric to merit upgrading the
denting its forecast profits and pessimistic about a sustained rally in
changes. “We have looked at every part 1 per cent on an annual basis as a prod- and inflationary cost pressures. bank’s six-month copper price forecast
prompting the steepest decline in the global commodity prices this year after
of our business through the consumer uct management charge. It is the latter On Monday, Beijing vowed to boost by 3 per cent to $9,500 per tonne com-
FTSE 100 company’s share price in an insipid recovery in China led to a
duty lens and where changes needed to fee that is being lowered to 0.85 per cent. consumer spending and revive the pared with $8,600 per tonne at present.
seven years. slump in first-half earnings.
be made we have made them,” he said. Net inflows in the six months to the economy but fell short of announcing Mining companies have been touting
The UK’s largest wealth manager said St James’s Place charges fees for the end of June fell 38 per cent year on year Duncan Wanblad, chief executive of stimulus measures that would help a prospective boost to prices from green
alongside interim results yesterday that advice it gives as well as the products it to £3.4bn. Croft said a tough economic Anglo American, said yesterday that an policies around the world since building
changes to its fee structure — driven by provides. Clients are charged an initial environment “naturally” had an impact “enormous amount of economic pres- wind farms, transmission grids and
regulatory changes — would reduce its advice fee of 4.5 per cent of their invest- on clients’ capacity to invest. sure” was making it hard to wager that
‘Will China continue to fuel electric cars requires a lot of metals.
net income by £12mn in the second half ment value and pay an additional Despite the slowdown in inflows, total sustained gains in the prices of its key demand? No, it won’t be as Simon Morris, head of base metals at
of the year. closing funds under management nev- commodities such as iron ore, copper CRU Group, a business intelligence
Annual product management fees for ertheless rose 6 per cent in six months to and steelmaking coal would take place
strong a demand story as company, said a lift to demand from the
long-term clients of the firm who hold a new high of £157.5bn. by the end of the year. it has been for 20 years’ clean energy transition looked unlikely
bond and pension investments are to be Analysts were more positive on the “We’ve been a little bit surprised at to materialise as quickly as hoped, while
reduced from 1 per cent to 0.85 per cent long-term outlook for St James’s Place, how slow the opening of China has manufacturing rebound, prompting a China is unlikely to compensate given a
from next week, the company said. which has a “market-leading” client been,” he said, adding that the world’s shortlived bounce in metal prices. shift in its economic model.
About 65,000 clients of St James’s Place retention rate of 95.6 per cent, accord- largest metals-consuming nation was Citigroup analyst Wenyu Yao said “Will China continue to fuel demand
stand to benefit. ing to David McCann, an analyst at still suffering from “Covid overhangs” China’s politburo meeting set a “positive as it has done? No . . . China won’t be as
Shares in St James’s Place were down Numis. that had sapped demand. tone” yet it was not the sort of “bazooka- strong a demand story as it has been for
16 per cent yesterday. Analysts said a The company produced a pre-tax In reference to when commodity style” stimulus required to push up Chi- 20 years,” he said. “There’s a lot of
bigger than expected decline in client profit of £385mn in the period com- prices would bottom out and rally, he nese demand for metals in the second hyperbole around the energy transi-
inflows also contributed to the sell-off. pared with a loss of £296mn in the same added that “it’s more likely to be early half of the year. tion.”
The fee changes come ahead of the period a year ago. next year than later this year quite hon- Goldman Sachs analysts said: “The Rio Tinto, the largest producer of iron
looming introduction of the Financial The board declared an interim divi- estly”. industrial metals complex has been ore, which is used to make steel, said on
Conduct Authority’s so-called con- dend of 15.83p a share, an increase of His comments came after the FTSE caught for much of this year between Wednesday that its main commodities
sumer duty, which will require financial The wealth manager is the UK’s 1.5 per cent. 100 miner cut dividends by more than disappointing growth momentum in were trading below their 2010 average
services companies to demonstrate they largest, with a network of offices See Lex half to $700mn following a fall in first- China, a manufacturing slowdown in prices during the first half of this year.
Friday 28 July 2023 ★ FINANCIAL TIMES 9
W
policy tightening was nearing its end 460
after the European Central Bank followed
the US Federal Reserve in lifting interest hile much of the debate decline and in response businesses will American stocks, bonds, factories and
rates by a quarter of a percentage point. 440 about limiting US gov- cut back on production and fire work- real estate.
Wall Street’s benchmark S&P 500 ernment debt assumes ers. To prevent this happening, Wash- These net inflows push up the value of
added 0.5 per cent by midday in New that rising debt is a con- ington typically does one of two things. the dollar and make US manufacturing
York and the tech-heavy Nasdaq 420 sequence of profligacy First, the US Federal Reserve can less competitive, so rather than run
Composite gained 1.2 per cent after data on the part of Washington policymak- implement policies that encourage trade surpluses to manage excess sav-
showed the US economy grew more ers, the problem is in fact structural. household borrowing to fund additional ings, the weak demand created by
strongly than expected in the second 400 Americans are forced to choose consumption. In that case, the reduc- income inequality is exacerbated as
quarter of 2023. between rising debt and higher unem- tion in the income share of ordinary America runs the trade deficits needed
European stocks also climbed, ployment largely because of the level of Americans is balanced by an increase in to absorb excess foreign production.
extending early gains after the ECB’s 380 income inequality — exacerbated by their borrowing so the same level of con- To stop unemployment rising, either
widely anticipated decision to increase 2021 2022 2023 their large trade deficit — that has sumption can be maintained. the Fed must encourage even more
the benchmark deposit rate by 0.25 Source: Refinitiv
sharply reduced the demand for US Second, Washington can itself borrow household debt or Washington must
percentage points to 3.75 per cent businesses and manufacturers. and use the proceeds to replace the run even larger fiscal deficits.
yesterday. The rise in US income inequality is the demand lost by the reduction in house- The mistake lawmakers make is to
The pan-regional Stoxx Europe 600 “We are confident that she won’t do the one more rate rise this year, boosting the key driver of debt. Because the wealthy hold consumption. Borrowing is effec- assume that rising debt in the US is the
rose 1.4 per cent, closing at its highest same for September today but we think US Dollar index by 0.8 per cent, which save a much larger part of their income consequence of irresponsible behaviour
level since Russia invaded Ukraine in she will keep her cards close to the body.” measures the US currency against a than do workers or the middle class and on the part of American households and
February 2022, while the CAC 40 in Paris In a similar move a day earlier, the Fed basket of six peers. use a much smaller part for consump- The choice is not between the government. In fact, it is a structural
was up 2.2 per cent and Frankfurt’s Xetra lifted its benchmark federal funds rate by The euro, which had earlier been up 0.4 tion, rising income inequality reduces more debt and less debt problem, and the choice Americans face
Dax advanced 1.7 per cent. 0.25 percentage points to a target range per cent against the dollar, gave up all its overall consumption and forces up sav- is not between more debt and less debt
The ECB has increased rates nine times of between 5.25 and 5.5 per cent. gains to slip 0.8 per cent lower to $1.1. ings by effectively transferring income but between more debt but rather between more debt and more
in the space of one year in efforts to Traders are now pricing in an almost 80 Yields on benchmark 10-year from high consumers (ordinary Ameri- and more unemployment unemployment.
tackle raging eurozone inflation and did per cent probability that US policymakers Treasuries gained 9 basis points to 3.94 cans) to high savers (the wealthy). As long as Americans are willing to
not rule out the possibility of rates rising will keep rates steady at their next per cent while those on two-year bonds, If the higher savings funded higher accept high levels of income inequality
further in September. meeting in September, according to data which are particularly sensitive to short- investment by US businesses, this would tively the opposite of saving and, by and large trade deficits, this is the trade-
“Last month, [ECB president Christine] compiled by Refinitiv and based on term interest rate expectations, rose by be a good thing for the economy. Lower increasing the fiscal deficit, the US can off the US must continue to suffer.
Lagarde all but pre-committed to today’s interest rate derivatives prices. the same amount to 4.92 per cent as the consumption would be balanced by undo the adverse consequences of rising To get debt under control without
hike,” said Claus Vistesen, chief eurozone The better than expected US growth debt was sold. Daria Mosolova and higher investment, with total demand savings among the wealthy. raising unemployment, Americans
economist at Pantheon Macroeconomics. figures marginally pushed up the odds of Hudson Lockett remaining the same in the short term There is a third option for many econ- must eliminate downward pressure on
and rising in the longer term as more omies. If a country’s savings rise faster demand by reversing several decades of
investment caused growth to accelerate. than its investment — or if demand policies that favour income inequality
Markets update But must more savings lead to higher declines relative to production — it can or that allow foreigners to dump their
investment? This belief is at the heart of export the excess production in the excess savings and excess production
supply-side economics but, while it was form of a trade surplus. into the US.
true many decades ago when business But the US cannot do this. Because of That is why for all the excited
US Eurozone Japan UK China Brazil investment was mainly constrained by its open and well-governed financial debate, debt ceilings won’t limit the rise
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa scarce savings and the high cost of capi- markets, the rest of the world prefers to in US debt. They just allow Congress to
Level 4587.19 1865.60 32891.16 7692.76 3216.67 121232.20 tal, it is no longer true today — when it is offload its excess savings there so the US pretend that it is doing something
% change on day 0.45 1.42 0.68 0.21 -0.20 -1.08 constrained mainly by weak demand. is a net importer, not a net exporter, of meaningful about America’s surging
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ Business investment has not risen in savings. debt burden.
Level 100.945 1.099 141.255 1.285 7.141 4.731 line with the savings of the wealthy. This This will happen as long as foreign
% change on day 0.057 -0.633 0.620 -0.542 -0.131 -0.019 creates a problem for the economy. If central banks, businesses, oligarchs and Michael Pettis is a finance professor at
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond lower consumption is not balanced by owners of financial assets can employ Peking University and a senior associate at
Yield 3.949 2.469 0.436 4.380 2.684 10.534 higher investment, total demand must their surpluses in unfettered access to the Carnegie China Center
Basis point change on day 7.460 -1.100 -0.710 3.200 -1.000 1.600
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 464.83 83.98 80.01 1966.30 24.67 3818.90
% change on day 0.47 1.28 1.56 0.39 0.47 -1.04
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.
7680
4480 1840
7520
4320 1800 7360
| | | | | | | |
4160 | | | | | | | | | | | | | | | | | | | |
1760 | | | | | | | | | | | | | | | | | | | | 7200 | | | | | | | | | | | |
Biggest movers
% US Eurozone UK
Align Technology 16.30 Asml Holding 5.25 Centrica 7.54
Textron 11.48 Heidelbergcement 5.12 Relx 4.68
Ups
MARKET DATA
-0.633% -0.542%
No change
0.45% 0.93% 0.08% 0.21% 1.42% 0.68% 1.41% 0.47% 0.620% 0.98% 0.39%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jun 28 - - Index All World Jun 28 - Jul 27 Index All World Jun 28 - Jul 27 Index All World Jun 28 - Jul 27 Index All World Jun 28 - Jul 27 Index All World Jun 28 - Jul 27 Index All World
S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
4,587.19 20,568.59 7,692.76 16,385.28 2,603.81
7,500.49 32,891.16
15,949.00 32,538.33 2,564.19
4,376.86 19,733.09
Day 0.45% Month 4.75% Year 13.98% Day 0.10% Month 4.29% Year 6.88% Day 0.21% Month 3.23% Year 4.82% Day 1.70% Month 1.84% Year NaN% Day 0.68% Month 0.67% Year 19.03% Day 0.44% Month 0.84% Year 7.91%
Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
14,258.55
1,865.60 9,694.70 19,639.11 3,337.42
54,480.63 9,481.30 19,172.05
1,809.03 3,205.35
13,555.67 53,460.06
Day 0.93% Month 5.18% Year 18.50% Day 0.46% Month 1.49% Year 16.84% Day 1.42% Month 3.86% Year 10.74% Day 0.98% Month 4.54% Year 20.14% Day 1.41% Month 4.55% Year -6.01% Day 0.98% Month 4.56% Year 4.48%
Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
35,547.32 121,490.24 29,597.81
7,461.37 66,266.82
33,926.74 7,286.32 3,216.67
116,681.32 27,637.46 3,189.38 62,970.00
Day 0.08% Month 4.77% Year 10.40% Day -1.08% Month 3.14% Year 19.50% Day 2.05% Month 3.91% Year 20.19% Day 2.13% Month 8.64% Year 39.88% Day -0.20% Month 2.10% Year -1.85% Day -0.66% Month 5.47% Year 20.17%
&RXQWU\ ,QGH[ /DWHVW 3UHYLRXV &RXQWU\ ,QGH[ /DWHVW 3UHYLRXV &RXQWU\ ,QGH[ /DWHVW 3UHYLRXV &RXQWU\ ,QGH[ /DWHVW 3UHYLRXV &RXQWU\ ,QGH[ /DWHVW 3UHYLRXV &RXQWU\ ,QGH[ /DWHVW 3UHYLRXV
$UJHQWLQD 0HUYDO &\SUXV
&6(0 3*HQ ,WDO\ )76(,WDOLD$OO6KDUH 3KLOLSSLQHV 0DQLOD&RPS 7DLZDQ :HLJKWHG3U &URVV%RUGHU '-*OREDO7LWDQV
$XVWUDOLD $OO2UGLQDULHV &]HFK5HSXEOLF
3; )76(,WDOLD0LG&DS 3RODQG :LJ 7KDLODQG %DQJNRN6(7 (XUR6WR[[(XU
6 3$6; 20;&&RSHQDKJHQ
'HQPDUN )76(0,% 3RUWXJDO 36, 7XUNH\ %,67 (XURQH[W,'
6 3$6;5HV (J\SW
(*; -DSDQ QG6HFWLRQ 36,*HQHUDO 8$( $EX'KDEL*HQHUDO,QGH[ )76(*RRG*OREDO
$XVWULD $7; (VWRQLD
20;7DOOLQQ 1LNNHL 5RPDQLD %(7,QGH[ 8. )7 )76($OO:RUOG
%HOJLXP %(/ )LQODQG
20;+HOVLQNL*HQHUDO 6 37RSL[ 5XVVLD 0LFH[,QGH[ )76( )76((
%(/0LG )UDQFH
&$& 7RSL[ 57; )76(*RRG8. )76((XURWRS
%UD]LO ,%RYHVSD 6%) -RUGDQ $PPDQ6( 6DXGL$UDELD 7$'$:8/$OO6KDUH,QGH[ )76($OO6KDUH )76(*OREDO
&DQDGD 6 376;
*HUPDQ\ 0'$; .HQ\D 16( 6LQJDSRUH )76(6WUDLWV7LPHV )76(WHFK0$5. )76(*ROG0LQ
6 376;&RPS 7HF'$; .XZDLW .6;0DUNHW,QGH[ 6ORYDNLD 6$; 86$ '-&RPSRVLWH )76(/DWLEH[7RS(XU
6 376;'LY0HW 0LQ ;(75$'D[ /DWYLD 20;5LJD 6ORYHQLD 6%,723 '-,QGXVWULDO )76(0XOWLQDWLRQDOV
&KLOH 6 3&/;,*3$*HQ *UHHFH
$WKHQV*HQ /LWKXDQLD 20;9LOQLXV 6RXWK$IULFD )76(-6($OO6KDUH '-7UDQVSRUW )76(:RUOG
&KLQD )76($ )76($6( /X[HPERXUJ /X[; )76(-6(5HV '-8WLOLWLHV )76(XURILUVW(XU
)76(% +RQJ.RQJ
+DQJ6HQJ 0DOD\VLD )76(%XUVD./&, )76(-6(7RS 1DVGDT )76(XURILUVW(XU
6KDQJKDL$ +6&KLQD(QWHUSULVH 0H[LFR ,3& 6RXWK.RUHD .RVSL 1DVGDT&PS 06&,$&:,)U
6KDQJKDL% +6&&5HG&KLS 0RURFFR 0$6, .RVSL 1<6(&RPS 06&,$OO:RUOG
6KDQJKDL&RPS +XQJDU\
%X[ 1HWKHUODQGV $(; 6SDLQ ,%(; 6 3 06&,(XURSH(XU
6KHQ]KHQ$ ,QGLD
%6(6HQVH[ $(;$OO6KDUH 6UL/DQND &6($OO6KDUH :LOVKLUH 06&,3DFLILF
6KHQ]KHQ% 1LIW\ 1HZ=HDODQG 1=; 6ZHGHQ 20;6WRFNKROP 9HQH]XHOD ,%& 6 3(XUR(XU
&RORPELD &2/&$3 ,QGRQHVLD
-DNDUWD&RPS 1LJHULD 6($OO6KDUH 20;6WRFNKROP$6 9LHWQDP 91, 6 3(XURSH(XU
&URDWLD &52%(; ,UHODQG
,6(42YHUDOO 1RUZD\ 2VOR$OO6KDUH 6ZLW]HUODQG 60,,QGH[ 6 3*OREDO
,VUDHO 7HO$YLY 3DNLVWDQ .6( 6WR[[(XU
F&ORVHGX8QDYDOLDEOHá&RUUHFWLRQƆ6XEMHFWWRRIILFLDOUHFDOFXODWLRQ)RUPRUHLQGH[FRYHUDJHSOHDVHVHHZZZIWFRPZRUOGLQGLFHV$IXOOHUYHUVLRQRIWKLVWDEOHLVDYDLODEOHRQWKHIWFRPUHVHDUFKGDWDDUFKLYH
CURRENCIES
'2//$5 (852 3281' '2//$5 (852 3281' '2//$5 (852 3281' '2//$5 (852 3281'
&ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V &ORVLQJ 'D\
V
-XO &XUUHQF\ 0LG &KDQJH 0LG &KDQJH 0LG &KDQJH -XO &XUUHQF\ 0LG &KDQJH 0LG &KDQJH 0LG &KDQJH -XO &XUUHQF\ 0LG &KDQJH 0LG &KDQJH 0LG &KDQJH -XO &XUUHQF\ 0LG &KDQJH 0LG &KDQJH 0LG &KDQJH
$UJHQWLQD $UJHQWLQH3HVR ,QGRQHVLD ,QGRQHVLDQ5XSLDK 3RODQG 3ROLVK=ORW\ 7KUHH0RQWK
$XVWUDOLD $XVWUDOLDQ'ROODU ,VUDHO ,VUDHOL6KHNHO 5RPDQLD 5RPDQLDQ/HX 2QH<HDU
%DKUDLQ %DKUDLQLQ'LQDU -DSDQ -DSDQHVH<HQ 5XVVLD 5XVVLDQ5XEOH 8QLWHG6WDWHV 8QLWHG6WDWHV'ROODU
%ROLYLD %ROLYLDQ%ROLYLDQR 2QH0RQWK 6DXGL$UDELD 6DXGL5L\DO 2QH0RQWK
%UD]LO %UD]LOLDQ5HDO 7KUHH0RQWK 6LQJDSRUH 6LQJDSRUH'ROODU 7KUHH0RQWK
&DQDGD &DQDGLDQ'ROODU 2QH<HDU 6RXWK$IULFD 6RXWK$IULFDQ5DQG 2QH<HDU
&KLOH &KLOHDQ3HVR .HQ\D .HQ\DQ6KLOOLQJ 6RXWK.RUHD 6RXWK.RUHDQ:RQ 9LHWQDP 9LHWQDPHVH'RQJ
&KLQD &KLQHVH<XDQ .XZDLW .XZDLWL'LQDU 6ZHGHQ 6ZHGLVK.URQD (XURSHDQ8QLRQ (XUR
&RORPELD &RORPELDQ3HVR 0DOD\VLD 0DOD\VLDQ5LQJJLW 6ZLW]HUODQG 6ZLVV)UDQF 2QH0RQWK
&RVWD5LFD &RVWD5LFDQ&RORQ 0H[LFR 0H[LFDQ3HVR 7DLZDQ 1HZ7DLZDQ'ROODU 7KUHH0RQWK
&]HFK5HSXEOLF &]HFK.RUXQD 1HZ=HDODQG 1HZ=HDODQG'ROODU 7KDLODQG 7KDL%DKW 2QH<HDU
'HQPDUN 'DQLVK.URQH 1LJHULD 1LJHULDQ1DLUD 7XQLVLD 7XQLVLDQ'LQDU
(J\SW (J\SWLDQ3RXQG 1RUZD\ 1RUZHJLDQ.URQH 7XUNH\ 7XUNLVK/LUD
+RQJ.RQJ +RQJ.RQJ'ROODU 3DNLVWDQ 3DNLVWDQL5XSHH 8QLWHG$UDE(PLUDWHV 8$('LUKDP
+XQJDU\ +XQJDULDQ)RULQW 3HUX 3HUXYLDQ1XHYR6RO 8QLWHG.LQJGRP 3RXQG6WHUOLQJ
,QGLD ,QGLDQ5XSHH 3KLOLSSLQHV 3KLOLSSLQH3HVR 2QH0RQWK
5DWHVDUHGHULYHGIURP:05HXWHUV6SRW5DWHVDQG0RUQLQJ6WDUODWHVWUDWHVDWWLPHRISURGXFWLRQ6RPHYDOXHVDUHURXQGHG&XUUHQF\UHGHQRPLQDWHGE\7KHH[FKDQJHUDWHVSULQWHGLQWKLVWDEOHDUHDOVRDYDLODEOHDWZZZ)7FRPPDUNHWVGDWD
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
3URGXFHGLQFRQMXQFWLRQZLWKWKH,QVWLWXWHDQG)DFXOW\RI$FWXDULHV -XO -XO -XO -XO -XO <U$JR +LJK /RZ <HDUWRGDWHSHUFHQWDJHFKDQJHV &ORVLQJ 'D\
V &ORVLQJ 'D\
V
e6WUOJ 'D\
V (XUR e6WUOJ e6WUOJ <HDU 'LY 3( ;' 7RWDO )7 /HLVXUH*RRGV ,QGXVWULDO(QJ 3HUVRQDO*RRGV )76( 3ULFH &KDQJH )76( 3ULFH &KDQJH
-XO FKJH ,QGH[ -XO -XO DJR \LHOG &RYHU UDWLR DGM 5HWXUQ )7'LY<LHOG &RQVWUXFW 0DWHULDO +RXVHKROG*RRGV +R %HYHUDJHV ,*URXS3/& -G6SRUWV)DVKLRQ3/&
)76( 3(5DWLRQHW $HURVSDFH 'HIHQVH ,QGXVWULDO7UDQVSRUW (TXLW\,QYHVW,QVWU $EUGQ3/& -RKQVRQ0DWWKH\3/&
)76( )7KRXUO\FKDQJHV $XWRPRELOHV 3DUWV *DV:DWHU 0XOWL +HDOWK&DUH $GPLUDO*URXS3/& .LQJILVKHU3/&
)76(H[,QY&R +LJK /RZ )RRG 'UXJ5HWDLOHU 5HDO(VW,QYHVW 6H (OHFWULFLW\ $LUWHO$IULFD3/& /DQG6HFXULWLHV*URXS3/&
)76( *HQHUDO5HWDLOHUV )LQDQFLDOV 3KDUPDFH %LRWHFK $QJOR$PHULFDQ3/& /HJDO *HQHUDO*URXS3/&
)76(H[,QYHVWPHQW7UXVWV )7FRQVWLWXHQWVDQGUHFHQWDGGLWLRQVGHOHWLRQVFDQEHIRXQGDWZZZIWFRPIW )RRG3URGXFHUV )L[HG/LQH7HOHFRPPV 5HDO(VW,QYHVW 7U $QWRIDJDVWD3/& /OR\GV%DQNLQJ*URXS3/&
)76(+LJKHU<LHOG 6RIWZDUH &RPS6HUY 8WLOLWLHV &RQVXPHU*RRGV $VKWHDG*URXS3/& /RQGRQ6WRFN([FKDQJH*URXS3/&
)76(/RZHU<LHOG FT WILSHIRE 5000 INDEX SERIES 7UDYHO /HLVXUH )76(,QGH[ %HYHUDJHV $VVRFLDWHG%ULWLVK)RRGV3/& 0 *3/&
)76(6PDOO&DS &RQVXPHU6HUYLFHV ,QGXVWULDO0HWDOV /LIH,QVXUDQFH $VWUD]HQHFD3/& 0HOURVH,QGXVWULHV3/&
)76(6PDOO&DSH[,QY&R -XO -XO ,QGXVWULDOV )76($OO^+<`6KDUH,QGH[ 7HOHFRPPXQLFDWLRQV $XWR7UDGHU*URXS3/& 0RQGL3/&
)76($OO6KDUH
)76($OO6KDUHH[,QY&R )7:LOVKLUH )7:LOVKLUH0LG&DS %DQNV +HDOWK&DUH(T 6UY 1RQOLIH,QVXUDQFH $YLYD3/& 1DWLRQDO*ULG3/&
)7:LOVKLUH )7:LOVKLUH6PDOO&DS )LQDQFLDO6HUYLFHV )76(,QGH[ 0RELOH7HOHFRPPV % 0(XURSHDQ9DOXH5HWDLO6$ 1DWZHVW*URXS3/&
)76($OO6KDUHH[0XOWLQDWLRQDOV
)76()OHGJOLQJ )7:LOVKLUH0HJD&DS )7:LOVKLUH0LFUR&DS (OHFWURQLF (OHF(T 121),1$1&,$/6,QGH[ &KHPLFDOV %DH6\VWHPV3/& 1H[W3/&
)7:LOVKLUH/DUJH&DS 0HGLD 2LO(TXLSPHQW 6HUY %DVLF0DWHULDOV %DUFOD\V3/& 2FDGR*URXS3/&
)76()OHGJOLQJH[,QY&R 7HFKQRORJ\ 2LO *DV 0LQLQJ
6RXUFH:LOVKLUH:LOVKLUH$GYLVRUV//&:LOVKLUHLVDQLQYHVWPHQWDGYLVRUUHJLVWHUHGZLWKWKH6(&)XUWKHU %DUUDWW'HYHORSPHQWV3/& 3HDUVRQ3/&
)76($OO6PDOO 6XSSRUW6HUYLFHV 2LO *DV3URGXFHUV 7REDFFR
LQIRUPDWLRQLVDYDLODEOHDWKWWSVZZZZLOVKLUHFRPVROXWLRQVLQGH[HV:LOVKLUHpLVDUHJLVWHUHGVHUYLFH %HD]OH\3/& 3HUVKLQJ6TXDUH+ROGLQJV/7'
)76($OO6PDOOH[,QY&R )76(6PDOO&DS,QGH[ 7HFK+DUGZDUH (T
PDUN&RS\ULJKWk:LOVKLUH$OOULJKWVUHVHUYHG %HUNHOH\*URXS+ROGLQJV7KH3/& 3HUVLPPRQ3/&
)76($,0$OO6KDUH
%33/& 3KRHQL[*URXS+ROGLQJV3/&
)76($OO6KDUH7HFKQRORJ\
%ULWLVK$PHULFDQ7REDFFR3/& 3UXGHQWLDO3/&
)76($OO6KDUH7HOHFRPPXQLFDWLRQV FTSE GLOBAL EQUITY INDEX SERIES %W*URXS3/& 5HFNLWW%HQFNLVHU*URXS3/&
)76($OO6KDUH+HDOWK&DUH
-XO 1RRI 86 'D\ 0WK <7' 7RWDO
<7' *U'LY -XO 1RRI 86 'D\ 0WK <7' 7RWDO <7' *U'LY %XQ]O3/& 5HO[3/&
)76($OO6KDUH)LQDQFLDOV
5HJLRQV FRXQWULHV VWRFNV LQGLFHV UHWQ
<LHOG 6HFWRUV VWRFNV LQGLFHV UHWQ <LHOG %XUEHUU\*URXS3/& 5HQWRNLO,QLWLDO3/&
)76($OO6KDUH5HDO(VWDWH
)76(*OREDO$OO&DS
2LO(TXLSPHQW 6HUYLFHV &HQWULFD3/& 5LJKWPRYH3/&
)76($OO6KDUH&RQVXPHU'LVFUHWLRQDU\
)76(*OREDO$OO&DS
%DVLF0DWHULDOV &RFD&ROD+EF$* 5LR7LQWR3/&
)76($OO6KDUH&RQVXPHU6WDSOHV
)76(*OREDO/DUJH&DS
&KHPLFDOV &RPSDVV*URXS3/& 5ROOV5R\FH+ROGLQJV3/&
)76($OO6KDUH,QGXVWULDOV
)76(*OREDO0LG&DS
)RUHVWU\ 3DSHU &RQYDWHF*URXS3/& 5V*URXS3/&
)76($OO6KDUH%DVLF0DWHULDOV
)76(*OREDO6PDOO&DS
,QGXVWULDO0HWDOV 0LQLQJ &UK3/& 6DJH*URXS3/&
)76($OO6KDUH(QHUJ\
)76($OO:RUOG
0LQLQJ &URGD,QWHUQDWLRQDO3/& 6DLQVEXU\-3/&
)76($OO6KDUH8WLOLWLHV
)76(:RUOG
,QGXVWULDOV 'FF3/& 6FKURGHUV3/&
)76($OO6KDUH6RIWZDUHDQG&RPSXWHU6HUYLFHV
)76(*OREDO$OO&DSH[81,7('.,1*'20,Q
&RQVWUXFWLRQ 0DWHULDOV 'LDJHR3/& 6FRWWLVK0RUWJDJH,QYHVWPHQW7UXVW3/&
)76($OO6KDUH7HFKQRORJ\+DUGZDUHDQG(TXLSPHQW
)76(*OREDO$OO&DSH[86$
$HURVSDFH 'HIHQVH (QGHDYRXU0LQLQJ3/& 6HJUR3/&
)76($OO6KDUH7HOHFRPPXQLFDWLRQV(TXLSPHQW
)76(*OREDO$OO&DSH[-$3$1
*HQHUDO,QGXVWULDOV (QWDLQ3/& 6HYHUQ7UHQW3/&
)76($OO6KDUH7HOHFRPPXQLFDWLRQV6HUYLFH3URYLGHUV
)76(*OREDO$OO&DSH[(XUR]RQH
(OHFWURQLF (OHFWULFDO(TXLSPHQW ([SHULDQ3/& 6KHOO3/&
)76($OO6KDUH+HDOWK&DUH3URYLGHUV
)76('HYHORSHG
,QGXVWULDO(QJLQHHULQJ ) &,QYHVWPHQW7UXVW3/& 6PLWK 1HSKHZ3/&
)76($OO6KDUH0HGLFDO(TXLSPHQWDQG6HUYLFHV
)76('HYHORSHG$OO&DS
,QGXVWULDO7UDQVSRUWDWLRQ )OXWWHU(QWHUWDLQPHQW3/& 6PLWK'V3/&
)76($OO6KDUH3KDUPDFHXWLFDOVDQG%LRWHFKQRORJ\
)76('HYHORSHG/DUJH&DS
6XSSRUW6HUYLFHV )UDVHUV*URXS3/& 6PLWKV*URXS3/&
)76($OO6KDUH%DQNV
)76('HYHORSHG(XURSH/DUJH&DS
&RQVXPHU*RRGV )UHVQLOOR3/& 6PXUILW.DSSD*URXS3/&
)76($OO6KDUH)LQDQFHDQG&UHGLW6HUYLFHV
)76('HYHORSHG(XURSH0LG&DS
$XWRPRELOHV 3DUWV *OD[RVPLWKNOLQH3/& 6SLUD[6DUFR(QJLQHHULQJ3/&
)76($OO6KDUH,QYHVWPHQW%DQNLQJDQG%URNHUDJH6HUYLFHV
)76('HY(XURSH6PDOO&DS
%HYHUDJHV *OHQFRUH3/& 6VH3/&
)76($OO6KDUH&ORVHG(QG,QYHVWPHQWV
)76(1RUWK$PHULFD/DUJH&DS
)RRG3URGXFHUV +DOHRQ3/& 6W-DPHV
V3ODFH3/&
)76($OO6KDUH/LIH,QVXUDQFH
)76(1RUWK$PHULFD0LG&DS
+RXVHKROG*RRGV +RPH&RQVWUXFWLRQ
+DOPD3/& 6WDQGDUG&KDUWHUHG3/&
)76($OO6KDUH1RQOLIH,QVXUDQFH
)76(1RUWK$PHULFD6PDOO&DS
/HLVXUH*RRGV
+DUJUHDYHV/DQVGRZQ3/& 7D\ORU:LPSH\3/&
)76($OO6KDUH5HDO(VWDWH,QYHVWPHQWDQG6HUYLFHV
)76(1RUWK$PHULFD
3HUVRQDO*RRGV
+LVFR[/7' 7HVFR3/&
)76($OO6KDUH5HDO(VWDWH,QYHVWPHQW7UXVWV
)76('HYHORSHGH[1RUWK$PHULFD
7REDFFR
+6%&+ROGLQJV3/& 8QLOHYHU3/&
)76($OO6KDUH$XWRPRELOHVDQG3DUWV
)76(-DSDQ/DUJH&DS
+HDOWK&DUH
,PL3/& 8QLWH*URXS3/&
)76($OO6KDUH&RQVXPHU6HUYLFHV
)76(-DSDQ0LG&DS
+HDOWK&DUH(TXLSPHQW 6HUYLFHV ,PSHULDO%UDQGV3/& 8QLWHG8WLOLWLHV*URXS3/&
)76($OO6KDUH+RXVHKROG*RRGVDQG+RPH&RQVWUXFWLRQ
)76(*OREDOZL-$3$16PDOO&DS
3KDUPDFHXWLFDOV %LRWHFKQRORJ\ ,QIRUPD3/& 9RGDIRQH*URXS3/&
)76($OO6KDUH/HLVXUH*RRGV
)76(-DSDQ
&RQVXPHU6HUYLFHV ,QWHUFRQWLQHQWDO+RWHOV*URXS3/& :HLU*URXS3/&
)76($OO6KDUH3HUVRQDO*RRGV
)76($VLD3DFLILF/DUJH&DSH[-DSDQ
)RRG 'UXJ5HWDLOHUV ,QWHUQDWLRQDO&RQVROLGDWHG$LUOLQHV*URXS6$ :KLWEUHDG3/&
)76($OO6KDUH0HGLD
)76($VLD3DFLILF0LG&DSH[-DSDQ
*HQHUDO5HWDLOHUV
,QWHUWHN*URXS3/& :SS3/&
)76($OO6KDUH5HWDLOHUV
)76($OO6KDUH7UDYHODQG/HLVXUH )76($VLD3DFLILF6PDOO&DSH[-DSDQ
0HGLD
)76($VLD3DFLILF([-DSDQ
7UDYHO /HLVXUH
)76($OO6KDUH%HYHUDJHV
)76($OO6KDUH)RRG3URGXFHUV
)76((PHUJLQJ$OO&DS
7HOHFRPPXQLFDWLRQ
UK STOCK MARKET TRADING DATA
)76($OO6KDUH7REDFFR )76((PHUJLQJ/DUJH&DS
)L[HG/LQH7HOHFRPPXQLDWLRQV
-XO -XO -XO -XO -XO <U$JR
)76($OO6KDUH&RQVWUXFWLRQDQG0DWHULDOV )76((PHUJLQJ0LG&DS
0RELOH7HOHFRPPXQLFDWLRQV
2UGHU%RRN7XUQRYHUP
)76($OO6KDUH$HURVSDFHDQG'HIHQVH )76((PHUJLQJ6PDOO&DS
8WLOLWLHV
2UGHU%RRN%DUJDLQV
)76((PHUJLQJ(XURSH
(OHFWULFLW\
2UGHU%RRN6KDUHV7UDGHGP
)76($OO6KDUH(OHFWURQLFDQG(OHFWULFDO(TXLSPHQW )76(/DWLQ$PHULFD$OO&DS
*DV:DWHU 0XOWLXWLOLWLHV
7RWDO(TXLW\7XUQRYHUeP
)76($OO6KDUH*HQHUDO,QGXVWULDOV )76(0LGGOH(DVWDQG$IULFD$OO&DS
)LQDQFLDOV
7RWDO0NW%DUJDLQV
)76($OO6KDUH,QGXVWULDO(QJLQHHULQJ )76(*OREDOZL81,7('.,1*'20$OO&DS,Q
%DQNV
7RWDO6KDUHV7UDGHGP
)76($OO6KDUH,QGXVWULDO6XSSRUW6HUYLFHV )76(*OREDOZL86$$OO&DS
1RQOLIH,QVXUDQFH
([FOXGLQJLQWUDPDUNHWDQGRYHUVHDVWXUQRYHU
8.RQO\WRWDODWSPÁ8.SOXVLQWUDPDUNHWWXUQRYHUX8QDYDOLDEOH
)76($OO6KDUH,QGXVWULDO7UDQVSRUWDWLRQ )76((XURSH$OO&DS
/LIH,QVXUDQFH
F0DUNHWFORVHG
)76($OO6KDUH,QGXVWULDO0DWHULDOV )76((XUR]RQH$OO&DS
)LQDQFLDO6HUYLFHV
)76($OO6KDUH,QGXVWULDO0HWDOVDQG0LQLQJ )76(('+(&5LVN(IILFLHQW$OO:RUOG
7HFKQRORJ\
)76($OO6KDUH3UHFLRXV0HWDOVDQG0LQLQJ )76(('+(&5LVN(IILFLHQW'HYHORSHG(XURSH
6RIWZDUH &RPSXWHU6HUYLFHV
$OOGDWDSURYLGHGE\0RUQLQJVWDUXQOHVVRWKHUZLVHQRWHG$OOHOHPHQWVOLVWHGDUHLQGLFDWLYHDQGEHOLHYHG
)76($OO6KDUH&KHPLFDOV 2LO *DV
7HFKQRORJ\+DUGZDUH (TXLSPHQW DFFXUDWHDWWKHWLPHRISXEOLFDWLRQ1RRIIHULVPDGHE\0RUQLQJVWDURUWKH)77KH)7GRHVQRWZDUUDQWQRU
)76($OO6KDUH2LO*DVDQG&RDO 2LO *DV3URGXFHUV
$OWHUQDWLYH(QHUJ\ JXDUDQWHHWKDWWKHLQIRUPDWLRQLVUHOLDEOHRUFRPSOHWH7KH)7GRHVQRWDFFHSWUHVSRQVLELOLW\DQGZLOOQRWEH
5HDO(VWDWH,QYHVWPHQW 6HUYLFHV OLDEOHIRUDQ\ORVVDULVLQJIURPWKHUHOLDQFHRQRUXVHRIWKHOLVWHGLQIRUPDWLRQ
)76(6HFWRU,QGLFHV 5HDO(VWDWH,QYHVWPHQW7UXVWV
1RQ)LQDQFLDOV )RUDOOTXHULHVHPDLOIWUHDGHUHQTXLULHV#PRUQLQJVWDUFRP
)76(*OREDO/DUJH&DS
7KH)76(*OREDO(TXLW\6HULHVODXQFKHGLQFRQWDLQVWKH)76(*OREDO6PDOO&DS,QGLFHVDQGEURDGHU)76(*OREDO$OO&DS,QGLFHVODUJHPLGVPDOOFDSDVZHOODVWKHHQKDQFHG)76($OO:RUOGLQGH[6HULHVODUJH
+RXUO\PRYHPHQWV +LJKGD\ /RZGD\ PLGFDSSOHDVHVHHKWWSVUHVHDUFKIWVHUXVVHOOFRP3URGXFWVLQGLFHV+RPHLQGH[ILOWHUJHLV"LQGH[1DPH *(,6$& FXUUHQF\ 86' UWQ &$3 VHJPHQW JOREDOGHYHORSHGÙHPHUJLQJ7KHWUDGHQDPHV)XQGDPHQWDO,QGH[p 'DWDSURYLGHGE\0RUQLQJVWDU_ZZZPRUQLQJVWDUFRXN
)76( DQG5$),pDUHUHJLVWHUHGWUDGHPDUNVDQGWKHSDWHQWHGDQGSDWHQWSHQGLQJSURSULHWDU\LQWHOOHFWXDOSURSHUW\RI5HVHDUFK$IILOLDWHV//&863DWHQW1RV3DWHQW3HQGLQJ3XEO
)76( 1RV86$86$86$86$:2:2$:2(31DQG+.ß('+(&ßLVDWUDGHPDUN
)76(6PDOO&DS RI('+(&%XVLQHVV6FKRRO$VRI-DQXDU\QG)76(LVEDVLQJLWVVHFWRULQGLFHVRQWKH,QGXVWULDO&ODVVLILFDWLRQ%HQFKPDUNSOHDVHVHHZZZIWVHFRPLFE)RUFRQVWLWXHQWFKDQJHVDQGRWKHULQIRUPDWLRQDERXW)76(
)76($OO6KDUH SOHDVHVHHZZZIWVHFRPk)76(,QWHUQDWLRQDO/LPLWHG$OO5LJKWVUHVHUYHGß)76(pßLVDWUDGHPDUNRIWKH/RQGRQ6WRFN([FKDQJH*URXSFRPSDQLHVDQGLVXVHGE\)76(,QWHUQDWLRQDO/LPLWHGXQGHUOLFHQFH
7LPHRI)76('D\
VKLJK'D\
V/RZ)76(+LJK/RZ
7LPHRI)76($OO6KDUH'D\
VKLJK'D\
V/RZ)76(+LJK/RZ
)XUWKHULQIRUPDWLRQLVDYDLODEOHRQKWWSZZZIWVHFRPk)76(,QWHUQDWLRQDO/LPLWHG$OO5LJKWVUHVHUYHGß)76(pßLVDWUDGHPDUNRIWKH
/RQGRQ6WRFN([FKDQJH*URXSFRPSDQLHVDQGLVXVHGE\)76(,QWHUQDWLRQDO/LPLWHGXQGHUOLFHQFHá6HFWRU3(UDWLRVJUHDWHUWKDQDUHQRWVKRZQ
)RUFKDQJHVWR)76()OHGJOLQJ,QGH[FRQVWLWXHQWVSOHDVHUHIHUWRZZZIWVHFRPLQGH[FKDQJHVâ9DOXHVDUHQHJDWLYH
Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. Placing price. *Intoduction. ÁWhen 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.
Friday 28 July 2023 ★ FINANCIAL TIMES 11
MARKET DATA
FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
&ORVH 3UHY 'D\ :HHN 0RQWK &ORVH 3UHY 'D\ :HHN 0RQWK 'D\
V 0WK
V 6SUHDG 'D\
V 0WK
V 6SUHDG
SULFH SULFH FKDQJH FKDQJH FKDQJH FKDQJH FKDQJH SULFH SULFH FKDQJH FKDQJH FKDQJH FKDQJH FKDQJH 5HG 5DWLQJV %LG %LG FKJH FKJH YV 5HG 5DWLQJV %LG %LG FKJH FKJH YV
5ROOV5R\FH +XQQJ3ZU -XO GDWH &RXSRQ 6
0
)
SULFH \LHOG \LHOG \LHOG 86 -XO GDWH &RXSRQ 6
0
)
SULFH \LHOG \LHOG \LHOG 86
&K26/QG ,QY 5D\WKHRQ +LJK<LHOG86 86
=RHWLV 5HOLDQFH,Q +&$,QF %% %D %% )OHHW%RVWRQ)LQDQFLDO&RUS %%% %DD $
$SSOLHG0DWHUL &KLSRWOH0H[LF +LJK<LHOG(XUR 7KH*ROGPDQ6DFKV*URXS,QF %%% $ $
%RHLQJ (GZDUGV/LIHVF $OGHVD)LQDQFLDO6HUYLFHV6$ % 1DWLRQV%DQN&RUS %%% %DD $
$OSKDEHW H%D\ *7(//& %%% %DD $
1HZ&K/LIH,QV ,QIRV\V (PHUJLQJ86 8QLWHG8WLOLWLHV3/& %%% %DD $
&KLQD9DQNH 1DWZHVW*URXS 3HUX %%% $ %%% %DUFOD\V%DQNSOF $ $ $
&KLQD0%DQN 0LGHD &RORPELD %DD %%%
%UD]LO %D %% (XUR
6DQGV&K $PHU([SU (OHFWULFLWHGH)UDQFH(') $ $ $
)UHVHQLXV6( 'HOWD 3RODQG $ $
0H[LFR %DD %%% 7KH*ROGPDQ6DFKV*URXS,QF %%% $ $
6RXWK&SU :DVWH0DQDJH 7KH*ROGPDQ6DFKV*URXS,QF %%% $ $
./$&RUS 0HGLD7HN 7XUNH\ %D %%
7XUNH\ % %% )LQODQG $$ $D $$
&KLQD/LIH %DUFOD\V
3HUX %%% $ %%% <HQ
%HFWRQ'LFN +&$+ROG
5XVVLD %DD %%% 0H[LFR %DD %%%
0 6 3*OREDO
+DQJ6HQJ %D[WHU %UD]LO %D %% e6WHUOLQJ
&LWLF6HFV $PHU$LU (PHUJLQJ(XUR LQQRJ\)LQ%9 %%% %DD $
7HOHIRQLFD +RQ\ZHOO %UD]LO %% %D %% LQQRJ\)LQ%9 %%% %DD $
8QLRQ3DF 7UQ&DQ 0H[LFR %%% $ %%% ,QWHUDFWLYH'DWD3ULFLQJDQG5HIHUHQFH'DWD//&DQ,&('DWD6HUYLFHVFRPSDQ\86GHQRPLQDWHGERQGV1<FORVHDOORWKHU/RQGRQ
0H[LFR %DD %%% FORVH
66WDQGDUG 3RRUÜV00RRG\ÜV))LWFK
%DVHGRQWKH)7*OREDOFRPSDQLHVLQORFDOFXUUHQF\ %DVHGRQWKH)7*OREDOFRPSDQLHVLQORFDOFXUUHQF\
%XOJDULD %%% %DD %%%
,QWHUDFWLYH'DWD3ULFLQJDQG5HIHUHQFH'DWD//&DQ,&('DWD6HUYLFHVFRPSDQ\86GHQRPLQDWHGERQGV1<FORVHDOO
RWKHU/RQGRQFORVH
66WDQGDUG 3RRUÜV00RRG\ÜV))LWFK
INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
-XO 5DWH &XUUHQW 6LQFH /DVW 'D\
V 0RQWK
V <HDU 5HWXUQ 5HWXUQ -XO 'D\&KQJ 3UHY ZNKLJK ZNORZ 5HG &KDQJHLQ<LHOG :HHN $PQW
86 )HG)XQGV ,QGH[ FKDQJH FKDQJH FKDQJH PRQWK \HDU 9,; -XO 3ULFHe <LHOG 'D\ :HHN 0RQWK <HDU +LJK /RZ eP
86 3ULPH 0DUNLW,%R[[ 9;'
86 'LVFRXQW $%)3DQ$VLDXQKHGJHG 9;1 7USF
(XUR 5HSR &RUSRUDWHVe 9'$; 7USF
8. 5HSR &RUSRUDWHVé &%2(9,;6 3LQGH[2SWLRQV9RODWLOLW\9;''-,$,QGH[2SWLRQV9RODWLOLW\9;11$6'$4,QGH[2SWLRQV9RODWLOLW\ 7USF
-DSDQ 2
QLJKW&DOO (XUR]RQH6RYé Á'HXWVFKH%RUVH9'$;'$;,QGH[2SWLRQV9RODWLOLW\ 7USF
6ZLW]HUODQG /LERU7DUJHW *LOWVe 7USF
2YHUDOOe BONDS: BENCHMARK GOVERNMENT 7USF
INTEREST RATES: MARKET 2YHUDOOé 5HG %LG %LG 'D\FKJ :NFKJ 0RQWK <HDU 7USF
2YHU &KDQJH 2QH 7KUHH 6L[ 2QH )76( 'DWH &RXSRQ 3ULFH <LHOG \LHOG \LHOG FKJ\OG FKJ\OG 7USF
-XO/LERU-XO QLJKW 'D\ :HHN 0RQWK PRQWK PRQWK PRQWK \HDU 6WHUOLQJ&RUSRUDWHe $XVWUDOLD 7USF
86/LERU (XUR&RUSRUDWHé 7USF
(XUR/LERU (XUR(PHUJLQJ0NWVé 7USF
e/LERU (XUR]RQH*RYW%RQG $XVWULD *LOWVEHQFKPDUNV QRQUXPSXQGDWHGVWRFNV&ORVLQJPLGSULFHLQSRXQGVSHUeQRPLQDORIVWRFN
6ZLVV)U/LERU
&5(',7,1',&(6 'D\
V :HHN
V 0RQWK
V 6HULHV 6HULHV
<HQ/LERU
(XUR(XULERU
,QGH[ FKDQJH FKDQJH FKDQJH KLJK ORZ
%HOJLXP GILTS: UK FTSE ACTUARIES INDICES
6WHUOLQJ&'V 0DUNLWL7UD[[ 3ULFH,QGLFHV 'D\
V 7RWDO 5HWXUQ 5HWXUQ
&DQDGD
86&'V &URVVRYHU< )L[HG&RXSRQ -XO FKJ 5HWXUQ PRQWK \HDU <LHOG
(XUR&'V (XURSH< 8SWR<HDUV
-DSDQ< <HDUV
6KRUW 'D\V 2QH 7KUHH 6L[ 2QH 'HQPDUN
6HQLRU)LQDQFLDOV< <HDUV
-XO WHUP QRWLFH PRQWK PRQWK PRQWK \HDU
0DUNLW&'; )LQODQG <HDUV
(XUR 2YHU<HDUV
(PHUJLQJ0DUNHWV<
6WHUOLQJ $OOVWRFNV
1WK$PHU+LJK<OG< )UDQFH
86'ROODU
1WK$PHU,QY*UDGH<
-DSDQHVH<HQ 'D\
V 0RQWK <HDU
V 7RWDO 5HWXUQ 5HWXUQ
:HEVLWHVPDUNLWFRPIWVHFRP$OOLQGLFHVVKRZQDUHXQKHGJHG&XUUHQFLHVDUHVKRZQLQEUDFNHWVDIWHUWKHLQGH[QDPHV *HUPDQ\
/LERUUDWHVFRPHIURP,&(VHHZZZWKHLFHFRPDQGDUHIL[HGDWDP8.WLPH2WKHUGDWDVRXUFHV86(XUR &'V ,QGH[/LQNHG -XO FKJ FKJ FKJ 5HWXUQ PRQWK \HDU
7XOOHWW3UHERQ6'586'LVFRXQW,0)(21,$(&%6ZLVV/LERU61%(8521,$521,$ 621,$:0%$
8SWR<HDUV
*UHHFH 2YHU\HDUV
\HDUV
,UHODQG 2YHU\HDUV
$OOVWRFNV
,WDO\ <LHOG,QGLFHV -XO -XO <UDJR -XO -XO <UDJR
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED <UV <UV
<UV <UV
(QHUJ\ 3ULFH
&KDQJH $JULFXOWXUDO &DWWOH)XWXUHV 3ULFH
&KDQJH 3ULFH <LHOG 0RQWK 9DOXH 1RRI
-DSDQ <UV
&UXGH2LO 6HS &RUQƇ 6HS -XO -XO 3UHY UHWXUQ VWRFN 0DUNHW VWRFNV
%UHQW&UXGH2LOÁ :KHDWƇ 6HS &DQ
LQIODWLRQ LQIODWLRQ
5%2%*DVROLQH $XJ 6R\EHDQVƇ $XJ )U
1HWKHUODQGV 5HDO\LHOG -XO 'XU\UV 3UHYLRXV <UDJR -XO 'XU\UV 3UHYLRXV <UDJR
1DWXUDO*DV 6HS 6R\EHDQV0HDOƇ $XJ 6ZH
8SWR\UV
%DVH0HWDOVƄ/0(0RQWKV &RFRD,&(/LIIH? 6HS 8.
$OXPLQLXP &RFRD,&(86Ɔ 6HS 1HZ=HDODQG 2YHU\UV
8.
$OXPLQLXP$OOR\ &RIIHH5REXVWD? 6HS \UV
8.
&RSSHU &RIIHH$UDELFDƆ 6HS 1RUZD\ 2YHU\UV
86
/HDG :KLWH6XJDU? 3RODQG $OOVWRFNV
86
1LFNHO 6XJDUƆ 6HH)76(ZHEVLWHIRUPRUHGHWDLOVZZZIWVHFRPSURGXFWVLQGLFHVJLOWV
5HSUHVHQWDWLYHVWRFNVIURPHDFKPDMRUPDUNHW6RXUFH0HULOO/\QFK*OREDO%RQG,QGLFHVá/RFDOFXUUHQFLHVâ7RWDOPDUNHW
7LQ &RWWRQƆ 2FW k7UDGHZHE0DUNHWV//&$OOULJKWVUHVHUYHG7KH7UDGHZHE)76(
YDOXH,QOLQHZLWKPDUNHWFRQYHQWLRQIRU8.*LOWVLQIODWLRQIDFWRULVDSSOLHGWRSULFHIRURWKHUPDUNHWVLWLVDSSOLHGWRSDU
=LQF 2UDQJH-XLFHƆ 6HS 3RUWXJDO *LOW&ORVLQJ3ULFHVLQIRUPDWLRQFRQWDLQHGKHUHLQLVSURSULHWDU\WR
DPRXQW
3UHFLRXV0HWDOV30/RQGRQ)L[ /LYH&DWWOHƅ $XJ 6SDLQ 7UDGHZHEPD\QRWEHFRSLHGRUUHGLVWULEXWHGLVQRWZDUUDQWHGWREH
*ROG )HHGHU&DWWOHƅ 0D\ BONDS: TEN YEAR GOVT SPREADS DFFXUDWHFRPSOHWHRUWLPHO\DQGGRHVQRWFRQVWLWXWHLQYHVWPHQWDGYLFH
6LOYHU86FHQWV /HDQ+RJVƅ $XJ 7UDGHZHELVQRWUHVSRQVLEOHIRUDQ\ORVVRUGDPDJHWKDWPLJKWUHVXOWIURPWKHXVHRIWKLVLQIRUPDWLRQ
3ODWLQXP 6SUHDG 6SUHDG 6SUHDG 6SUHDG 6ZHGHQ
3DOODGLXP &KJ &KJ %LG YV YV %LG YV YV $OOGDWDSURYLGHGE\0RUQLQJVWDUXQOHVVRWKHUZLVHQRWHG$OOHOHPHQWVOLVWHGDUHLQGLFDWLYHDQGEHOLHYHGDFFXUDWH
%XON&RPPRGLWLHV -XO 0RQWK <HDU <LHOG %XQG 7%RQGV <LHOG %XQG 7%RQGV 6ZLW]HUODQG DWWKHWLPHRISXEOLFDWLRQ1RRIIHULVPDGHE\0RUQLQJVWDULWVVXSSOLHUVRUWKH)71HLWKHUWKH)7QRU
,URQ2UH 6 3*6&,6SW 0RUQLQJVWDUÜVVXSSOLHUVZDUUDQWRUJXDUDQWHHWKDWWKHLQIRUPDWLRQLVUHOLDEOHRUFRPSOHWH1HLWKHUWKH)7QRU
$XVWUDOLD 1HWKHUODQGV
%DOWLF'U\,QGH[ '-8%66SRW $XVWULD 1HZ=HDODQG 8QLWHG.LQJGRP 0RUQLQJVWDUÜVVXSSOLHUVDFFHSWUHVSRQVLELOLW\DQGZLOOQRWEHOLDEOHIRUDQ\ORVVDULVLQJIURPWKHUHOLDQFHRQWKH
5LFKDUGV%D\,&()XWXUHV 75&&&5%75 &DQDGD 1RUZD\ XVHRIWKHOLVWHGLQIRUPDWLRQ)RUDOOTXHULHVHPDLOIWUHDGHUHQTXLULHV#PRUQLQJVWDUFRP
/(%$(8$&DUERQ 'HQPDUN 3RUWXJDO
/(%$8.3RZHU )LQODQG 6SDLQ 8QLWHG6WDWHV 'DWDSURYLGHGE\0RUQLQJVWDU_ZZZPRUQLQJVWDUFRXN
Sources: NYMEX, Á ECX/ICE, Ƈ CBOT, ? ICE Liffe, Ɔ ICE Futures, ƅ CME, Ƅ LME/London Metal Exchange.* Latest prices, $ *HUPDQ\ 6ZHGHQ
unless otherwise stated. ,WDO\ 6ZLW]HUODQG
-DSDQ 8QLWHG6WDWHV
,QWHUDFWLYH'DWD3ULFLQJDQG5HIHUHQFH'DWD//&DQ,&('DWD6HUYLFHVFRPSDQ\ ,QWHUDFWLYH'DWD3ULFLQJDQG5HIHUHQFH'DWD//&DQ,&('DWD6HUYLFHVFRPSDQ\
12 ★ FINANCIAL TIMES Friday 28 July 2023
ARTS
S
ome time ago, people started Leisurely comedy Everybody Loves
applying the term “elevated Jeanne is the sort of polished, intelligent
horror” to a certain strain of confection that French cinema turns
chiller. It meant films that had out in high quantity — elegantly con-
loftier aspirations than sim- ceived, sparkily acted, yet a little under-
ply freezing your marrow, ones that had baked in a way that leaves you going,
complex contemporary themes, or sty- “Euhhh . . . c’est tout?” Debut filmmaker
listically veered closer to art-house than Céline Devaux is a live-action director
charnel house. Examples included and an animator, and here she merges
Hereditary, Us and the extraordinary the two forms in the story of a hapless
Australian film The Babadook, which heroine fleeing personal calamity.
addressed childhood fears and the ago- Blanche Gardin plays Jeanne, riding
nies of lone parenting. high as the creator of a revolutionary
Twin brothers Danny and Michael eco-project until her brainchild sinks
Philippou got their start as crew mem- ignominiously in an incongruous pas-
bers on The Babadook. You suspect that, sage of ocean-going slapstick. Crushed,
like many genre fans who consider the she leaves France for Lisbon, where she
tag spuriously snobbish, they have little grew up, and en route meets a bump-
time for “elevated horror”; that’s cer- tious ex-schoolmate, the presentable
tainly what you’d guess from their but motormouthed Jean (Laurent
YouTube channel RackaRacka, which Lafitte). Once in Lisbon, Jeanne checks
exults in gonzo gross-out farce. Yet their in with an unreliable ex (Nuno Lopes)
feature debut Talk to Me suggests that and tries to shake off the ghost of her
they can be as serious as anyone — mother, who is guilt-tripping her from
though not straight-faced. The film beyond the grave. She’s played, in the
could almost be a routine American- merest cameo of a cameo, by Marthe
style scarer about teenagers messing Keller, who was the Garbo-like diva in
with the dead, except that it does the job Billy Wilder’s 1978 Fedora.
with so much more verve. The stylistic twist is that Jeanne is also
The setting is suburban Adelaide, haunted, and taunted, by her naysaying
where teenager Mia (Sophie Wilde) is
mourning her mother’s death, but hop- Talk to Me exposure to the Beyond gets a horrifying
ing for distraction while hanging out Danny & Michael Philippou demonstration when one youth suffers
‘Talk to Me’ has its share
with best friend Jade (Alexandra AAAAE a self-destructively bad trip with no end of jump scares and
Jensen). As it happens, a local craze is an in sight.
occult game of dare involving a plaster The Beanie Bubble Talk to Me has its share of jump scares mouldering revenants.
hand that supposedly contains the sev-
ered remnant of a psychic. It is said that
Kristin Gore & Damian Kulash
AAAEE
and mouldering revenants. But it has
subtler touches too: the game’s varied
But it has subtler
if you grasp the hand and say “Talk to and unpredictable effects; themes such touches too
me”, weird things happen, notably an Everybody Loves Jeanne as loneliness and the contagious nature
intense rush of otherworldly possession. Céline Devaux of desperation. There are witty contem- inner self — a cartoon creature oddly
Scripted by Danny Philippou and Bill AAAEE porary touches: when something hor- resembling a roughly sketched half-
Hinzman, the film cleverly frames the rific suddenly happens in the opening cucumber. This apparition has its
ritual as something like surreptitious My Name Is Alfred party scene, the first thought of every- moments, but introduces an archness to
teen experimentation with a novelty Hitchcock one present is to whip out their phones a film otherwise made of sharper stuff —
drug, cautious novices egged on by older Mark Cousins and film it. a pity because, in the more abstract,
members of the circle. That there might AAAAE There’s also a distinctive Australian decorative passages of Devaux’s anima-
be a recommended minimum age for flavour: the mixed Oceanic make-up of tion, there’s real style at work.
Jeanne’s ace card is Gardin, an
increasingly visible comic fixture in
the cast, Antipodean rap on the sound- Michael Douglas’s Gordon Gekko if he French cinema. Her flustered energy
track, even the macabre but poignant had believed that missing lunch was makes Jeanne more quizzically acerbic
appearance of a kangaroo. Cinematog- for wimps. than the self-deprecating Bridget
rapher Aaron McLisky uses suburban A breezy feminist demolition of self- Jones-y flustered femme we think we’re
claustrophobia effectively, with even made-man mythology, The Beanie Bub- in for. In its last stretch, alas, the film
daylight scenes ominously overcast, an ble is marred by clunky ironic retrospec- goes nowhere — although Lisbon in the
extra layer of Shining-like dread coming tion, based on showing its characters quiet season is the nicest kind of
from a balefully textured sound design. unschooled in the internet or excited nowhere to be.
The young ensemble cast crackle with about this new thing called “ePort? On Mubi now
energy, with spiky adult support from eBay!”. The toys’ selling point was that
Australian cinema stalwart (and some- they were “understuffed” to make them Documentary essayist Mark Cousins
time Lord of the Rings player) Miranda adorably floppy, but no one could call could legitimately have trademarked
Otto. Joe Bird is show-stealingly fearless the film understuffed: it is dense with the term “indefatigable” by now, and
as Jade’s younger brother, while Sophie incident and highly intricate. here’s the latest of his highly personal
Wilde’s Mia is a very appealing mix of The story is told in the first person, accounts of cinema history. Previously,
impetuous, intrepid and deeply vulner- alternating the women’s accounts, with Cousins has given us takes on Sergei
able, her presence carrying us through a time scheme that zigzags between the Eisenstein, Orson Welles and indeed the
to a snappily executed, bracingly dark 1980s and ’90s, craftily working towards entire phenomenon of cinema (his
pay-off. Talk to Me may not be elevated the three narratives’ intersection. In monumental The Story of Film); now it’s
as such, but it’s certainly lifted a good other words, while the film has the can- the turn of the Leytonstone-born mas-
few notches above the ghoulish norm. dy-coloured pop-culture appeal of Bar- ter of suspense in My Name Is Alfred
In cinemas now bie, it displays the structural complexity Hitchcock. You might think that Hitch-
of Oppenheimer — a useful consideration cock’s art had been thoroughly covered
Where once lumbered the earnest Hol- if you still can’t get tickets for either. in documentary — in recent years alone
lywood docudrama, there now flour- On Apple TV+ now we’ve had Kent Jones’s Hitchcock/Truf-
ishes a fleeter beast — the flip fictional- faut and Alexandre O Philippe’s 78/52,
ised exposé. It’s a painless, sugar-coated about the Psycho stabbing scene.
approach to complex topics, and equally But Cousins offers a novelty, a film
effective — some would argue, equally “written and voiced by Alfred Hitch-
superficial — whether it tackles eco- cock”, as the credits cheekily announce.
nomics (The Big Short), politics (Vice) or Not quite: the premise is that Hitch is
true crime (American Hustle). Now The giving a wry masterclass on his art,
Beanie Bubble examines the shenani- voiced by impersonator Alistair
gans behind a singular phenomenon in McGowan, who offers a fairly uncanny
recent US commerce: a line of pocket- approximation (despite the faintest
sized soft toys that in the late 1990s overtone of Michael Caine with ill-
became as avidly sought after as tulips fitting dentures).
in 17th-century Holland. Built ingeniously around six themes
Directed by Kristin Gore, who — escape, desire, loneliness to name
scripted, and Damian Kulash, The three — the film can’t be faulted on com-
Beanie Bubble recounts the bizarre trad- prehensiveness. Crammed with clips, it
ing boom in Beanie Babies, the plush has all the classics, but also the less dis-
animals made by the Ty toy company. cussed greats, plus an extract from the
Based on Zac Bissonnette’s book The documentary German Concentration
Great Beanie Baby Bubble: Mass Delusion Camps Factual Survey (“Sometimes,”
and the Dark Side of Cute, the film sug- says Hitchcock ruefully, “you have to
gests that the craze was a classic exam- see with your own eyes.”). While sea-
ple of American something-for-nothing soned Hitchockians may find nothing
fever — it ends by making comparisons radically new here, this is an insightful,
with cryptocurrencies and NFTs. entertaining study with a light touch.
While company founder Ty Warner In UK cinemas now
(Zach Galifianakis) was the public face
of the business — and, the film contends,
a neurotically clueless self-promoter —
the film is really about three women and
their role in the Babies’ success.
Renamed for this account, the women
are Robbie (Elizabeth Banks), who
becomes Warner’s domestic and busi-
ness partner; later fiancée Sheila (Suc-
cession’s Sarah Snook), whose young
daughters help inspire the toys; and
Maya (Geraldine Viswanathan), a
college-age employee who becomes the
company’s under-appreciated and
underpaid marketing genius.
The female leads are terrifically zest-
ful and nuanced, with Viswanathan
especially striking as the clued-up
young powerhouse behind the toys’ suc-
cess. The broad comic content comes
from Galifianakis as a needy, narcissistic
man-boy with big glasses, slicked coif Top: documentary ‘My Name is Alfred Hitchcock’ is a study of the director.
and luxuriant bulk, a look that suggests Above: Laurent Lafitte and Blanche Gardin in ‘Everybody Loves Jeanne’
Friday 28 July 2023 ★ FINANCIAL TIMES 13
The Asian country is making sweeping reforms in the hope of setting off a years-long resources boom.
Its push for western investment also holds the promise of a buffer against Beijing and Moscow.
By Edward White
T
hirteen-hundred metres To address this, the European Bank
beneath the vast Gobi for Reconstruction and Development,
Desert, the heat, dust and with backing from Australia, has helped
a sense of claustrophobia establish a national geoscience database
are unshakeable after a for Mongolia. However, that database
rapid trip down a mine shaft in a freight needs to be filled with new geological
elevator known as “the cage”. surveys. Local industry leaders are
Yet Ganbat Tuvshinbat, a local min- quietly lobbying Oyun-Erdene’s admin-
ing engineer, grins broadly. “This is the istration to spend about $200mn to pay
warmest place in Mongolia,” he says of a for the modern surveys, which they
country where the average temperature believe are needed to reduce risk and
is below zero. “Here you can experience attract private-sector explorers.
summer all year round.” Clark, of the Australian Space Agency
Tuvshinbat and his employer Rio who also sits on the Rio board, says
Tinto, the Anglo-Australian multi- Mongolia must ensure its mining-
national, have reason to smile. Towards focused officials are properly resourced,
the end of this decade, the company adding that agencies responsible for
plans to produce about half a million controlling exploration and mining
tonnes of copper from the Oyu Tolgoi permits should be considered a “vital”
mine each year, enough of the metal national capability.
to help build 6mn electric vehicles. Mongolia’s potential has been likened
When the underground mine is fully to South Korea’s evolution into a tech-
operational, it will be the fourth biggest nology manufacturing powerhouse.
copper project in the world — a boon Dominic Barton, the chair of Rio Tinto,
for the Mongolian government, which notes that in the 1970s South Korea had
holds a 34 per cent stake. “very little energy supply . . . no indus-
Despite setbacks and delays, Oyu Tol- trial market whatsoever, and very little
goi — already the biggest foreign invest- access to capital”. Barton, a former sen-
ment in the Asian country’s history — is ior McKinsey executive and Canadian
emblematic of what the Mongolian Peo- diplomat in China, argues: “There is
ple’s party government sees as its path every reason and more to believe Mon-
to prosperity. Luvsannamsrain Oyun- golia can go through the same transfor-
Erdene, Mongolia’s Harvard-educated, mational change in the next 30 years.”
reformist prime minister, wants west-
ern mining groups to tap the country’s Squeezed by superpowers
vast deposits of copper, uranium and Yet as Mongolia reaches out to the west
other critical minerals essential to the to boost growth, it must also avoid
world’s fight against climate change. flaring rising geopolitical tensions.
Much is at stake for the country of This careful navigation was apparent
3.4mn people which only emerged from on June 27, when Oyun-Erdene met
single-party socialist control in the Xi Jinping, China’s president, in Beijing.
1990s. If Oyun-Erdene is successful, His visit resulted in agreements to triple
the developing country will enjoy a the capacity of an increased number of
years-long resources boom. The govern- China-Mongolia border crossings and
negotiations over access to the port at
500 km Tianjin, south-east of the Chinese
RUSSIA capital. On the same day, Jose Fernan-
dez, the US under secretary of state for
the environment, signed a memoran-
dum of understanding with Mongolia to
Ulaanbaatar
jointly work on securing a supply chain
MONGOLIA for critical minerals.
Oyu Tolgoi mine The simultaneous deals with the US
and China highlighted the Mongolian
Beijing leader’s pragmatic approach, diplomats
CHINA
Tianjin say. This strategy has also included
©Mapcreator.io | OSM.org abstaining from voting on UN resolu-
tions on Ukraine.
ment hopes to more than triple gross Leif-Eric Easley, a professor of inter-
The FT View
Time to retire the ‘emerging markets’ label
changed vastly since the term became to be punctuated by rising protection- The breakneck a country or thematic basis could help
Clumping the developing popular. For instance, the breakneck ism and friend-shoring, is set to have growth of investors to unlock higher returns and
growth of China and India makes them more differentiated impacts. enable developing countries to obtain
world together obscures particular outliers when compared to This variation makes the EM moniker
China and India
more capital. For that, access to reliable
risks and opportunities fellow EMs. Recent shocks have also increasingly unfit for macroeconomic makes them country-level data will be important.
underscored the economic diversity and investment analysis. The broad- particular There have been numerous attempts
Humans have an innate desire to sort across EMs. On the policy front, central brush label can obscure risks and outliers to popularise other groupings. The Brics
and categorise the world around them. banks in emerging Europe and Latin opportunities. For instance, the rising nations — Brazil, Russia, India, China
The economist Antoine van Agtmael is America were particularly aggressive narrative around EMs’ economic resil- and South Africa — are perhaps the
no exception. In 1981 at the World Bank, in raising interest rates to get ahead of ience — with fewer than anticipated most famous. Then there are “emerging
he coined the phrase “emerging mar- inflation in the aftermath of the pan- debt defaults in the aftermath of the and growth leading economies”, or
kets” as a more aspirational alternative demic and the war in Ukraine. Mean- pandemic — risks playing down the Eagles. Few have proved useful, given
to the term “third world”. The label while, some EMs have prudently built pockets of vulnerability that still exist. large economic differences in terms of
has since become synonymous with a up foreign currency reserves and issued Turkey has a dearth of FX reserves, pri- trade, growth and financial openness.
hotchpotch of fast-growing nations con- more home currency debt making them vate sector debt servicing costs in Brazil Definitions also vary. Investment indi-
sidered to be riskier investment pros- less susceptible to crisis dynamics. and China are concerning, and Tunisia ces focus on market access metrics,
pects than “developed markets”. While Volatile commodity markets have and Pakistan are on the brink. while economic bodies prefer macr-
it may have been a successful rebrand, also distinguished net energy exporters Financial markets also still rely on the oeconomic thresholds.
for economists and investors the catch- from importers and those with critical EM-DM dichotomy or other regional The developing world does not fall
all term has become unhelpful. reserves. And tensions between the groupings. But investors will want expo- neatly into a single category. And, in a
Emerging markets, which account for west and China are having differing eco- sure to countries likely to benefit from global economy hit by multiple crises
the bulk of the world’s population, are nomic impacts too, depending on geog- new trends, including the scramble for and geopolitical upheaval, there are
not a homogeneous group. Rather, they raphy and diplomatic relations. Indeed, critical minerals and “China plus one” even greater upsides for economists
consist of dynamic and highly diverse though trade liberalisation since the supply chain strategies. Indeed, disaggre- and investors that can differentiate
countries at different stages of develop- 1990s helped most EMs to take off, the gating EM bonds, equities and alternative between them. Perhaps it is time to
ft.com/opinion ment — and their composition has next phase of globalisation, which looks assets, such as infrastructure projects, on retire the EM label altogether.
become the new UK’s leading role in aviation emissions policy hit by Brexit
partisan divide Cait Hewitt and Henry Mance made
some interesting points about aviation
aviation climate change team when she
took up her Aviation Environment
AEF and other civil society groups.
Most notably, the UK was the leading
Organization’s committee on
environmental protection in 2004,
sustainability in their conversation Federation role 16 years ago. In my advocate for climate change mitigation known as CAEP 5 — a meeting which I
(The Henry Mance Interview, July 24), second post as a senior civil servant measures in the EU, along with the chaired, in a neutral capacity.
John Burn-Murdoch although her criticism of the planning
system is somewhat churlish given that
(2001-04), I was head of DfT’s aviation
environmental division, which was
Dutch, Swedes, Swiss (who were part of
the EU effort) and European
One of the inconveniences of the
UK’s exit from the EU is that it is now
the UK system appears designed to already a well-established unit in the Commission officials. The UK and EU harder to influence EU policy and no
make any new significant department. The division had separate fought long and hard against longer possible to play our previous
Britons are very supportive of green policies, with infrastructure as difficult and costly as teams working on aircraft noise, air opposition from pretty much every leading role in European efforts to
Conservatives often as green as the centre-left elsewhere possible — hence no new full-length quality impacts and climate change other corner of the globe, led by the US, shape global policy on aviation
runway in the London/south-east area mitigation, as well as support from and managed to make decent progress emissions reductions.
Net support for green policies in western nations, by party or candidate (% points) since the second world war. scientific, economist and legal on a range of environmental measures Graham Pendlebury CBE
A ban on the sale of new petrol and diesel cars after 2030 However, it is not true that the colleagues. We had regular and at the fifth triennial meeting of the (Former Senior Civil Servant, DfT)
UK AfD CDU Con Lab Department for Transport had no constructive discussions with the International Civil Aviation Surrey, UK
Germany SPD
US Rep Dem
France Le Pen Macron
−75 0 +75 Deterrence tactics drive Diversity initiatives will Technology can play key
A tax on flights linked to how frequently people fly
UK Con Lab
tensions in Taiwan Strait unlock start-ups’ potential role in motivating workers
Germany AfD CDU SPD Dealing effectively with the Chinese The article discussing tax relief for The article by Andrew Hill (“UK lags
US Rep Dem military’s escalation in the use of the UK’s regional start-ups (FT.com, behind G7 peers on productivity due to
France Le Pen Macron
“grey zone” tactics requires a clear July 24) is right to call for boosted ‘complacency’”, FT.com, July 18) raises
Tripling government investment in renewables understanding of the dynamics driving venture capital investments outside some well-founded questions about
Lab
UK Con it and the essential elements involved London. Yet, the article leaves diversity the state of productivity in the UK.
Germany AfD CDU SPD in countering it. Unfortunately, initiatives as a footnote, undermining However, the article fails to highlight
US Rep Dem
France Le Pen Macron Kathrin Hille’s and Demetri their crucial role in unlocking the full the potential of technology to engage
Sevastopulo’s analysis falls short on potential of the start-up landscape. workers and improve productivity.
Source: FT analysis of data from YouGov
I
both counts (The Big Read, July 24). The Treasury committee report Improving productivity requires
The US, China and, to some extent, sheds light on the concerning situation a comprehensive approach that goes
t’s not often these days that one new wind farm applications were sub- Taiwan are locked in an interactive, for women entrepreneurs in the UK. beyond adjustments made solely by
thinks of Britain as having advan- mitted each year, but that had plum- escalating dynamic marked by a Failing to invest in the potential and managers. It’s a complex issue without
tages over other developed coun- meted to single digits by 2016, and has myopic focus on military deterrence skills of half the population puts a quick-fix solutions. Information and
tries, and less often still that those not recovered. Similarly, after the over credible levels of reassurance. ceiling on the growth prospects of deskless workers have different
advantages stem from unity withdrawal of government support for China’s escalating military threats female founders, as well as holding motivations that require different
across a famously divided electorate, solar, new applications fell from 488 in against Taiwan are — to a great extent back the economy at large. engagement methods to improve
but for some time now support for the 2015 to just 10 two years later. — a reaction to what Beijing regards as The US and Chinese navies have been Start-ups that prioritise gender- productivity. For example, deskless
pursuit of net zero has been broader Despite solar and wind enjoying various US and Taiwanese efforts to more active in the Taiwan Strait balanced boards and inclusive workers are often motivated by
and deeper in the UK than any peer very strong public support at the time, establish the permanent separation of decision-making consistently a desire for greater autonomy,
country. And it’s not just flimsy sup- both were casualties of David Cam- the island from China. They are outperform their peers; success stories whereas information workers are
port for vague concepts, but for real eron’s desire to “get rid of all the green deterrence actions, which prompt Central banks should ease from the Nordics and eastern Europe more motivated by opportunities
policies, including those that would hit crap”. This bid to bring down house- further destabilising military and should serve as a beacon for what can for promotion.
people in their wallets or otherwise hold energy bills had the opposite diplomatic deterrence behaviour by fears over CBDC privacy be done in a truly diverse tech space. As Anthony Impey of Be the Business
impact their daily lives. effect, with the resulting poorly insu- Washington and Taipei, in an endless While Eswar Prasad is right to highlight We also, as VCs, need to do better in points out, businesses must delve into
The current implementation of Lon- lated homes and over-reliance on gas escalatory spiral. This dynamic is concern that retail central bank empowering women in our industry. behavioural science to understand
don’s ultra low emission zone has adding £9.8bn to UK energy bills over the key to understanding increasing digital currencies could be used for This means more women at general what motivates their workforce and
proved unpopular among many of the the past year. Today Rishi Sunak is tensions in the Taiwan Strait, not “surveillance purposes” (Opinion, partner level, and more women fully genuinely affects productivity. Armed
city’s drivers, but Britons are solidly in making the same mistake, only the a possible factor to be mentioned July 25), there are three key ways in included in leadership at funds. The with these insights, they can deploy
favour of the planned ban on the sale stakes are higher and the outcome in passing. which central banks can mitigate the recent European Women in VC report innovative technologies, from mobile
of new petrol and diesel cars from may well be worse for all involved, The authors make only a passing privacy risks associated with CBDCs. said female general partners controlled apps to digital signage to enhance
2030 — something that cannot be said starting with his party. reference to such possible motives. The First, central banks must maintain a less than 10 per cent of total assets employee engagement, tailored to each
for the publics of France, Germany or Thirty per cent of current Conserva- bulk of their article is spent defining design framework that upholds data under management in Europe — yet team or business section.
the US. More striking still, support for tive supporters say that if Sunak the features of China’s growing grey anonymity. Although CBDC would be a accounted for 15 per cent of GPs. Addressing the challenges of
this policy is higher among British waters down the net zero targets it zone threats and the calls for greater liability of the central bank, it doesn’t By incentivising funds to address complacency and poor productivity is
would put them off voting Tory at next levels of military deterrence by follow that the central bank would bias in their decision-making and among the UK’s most pressing issues. If
year’s election. The environment is (primarily Taiwan) observers. They have access to user data. Under an ensuring firms are evaluated on return the UK continues to fall down the list of
The public, including simply a much bigger issue for voters
in 2023 than it was in 2013, and former
should have framed China’s behaviour
in this fundamentally interactive
intermediated model, for example,
customers would hold accounts or
on investment and growth potential,
we can create a win-win scenario for
productive countries, this could have
significant knock-on effects in terms
Conservative voters, is Tory voters are disproportionately context from the start, not merely wallets managed by private providers, investors and founders alike. of foreign investment levels or the
fully behind ambitious more likely to say they’ll switch to allude to it as a possibility. with data protection in line with Ekaterina Almasque number of new start-ups being
Labour if they think the government is The authors fail to grasp that existing banking solutions or better. General Partner, OpenOcean, founded, ultimately making the
green growth not doing enough on climate. Being effective deterrence requires not only Second, central banks should London W1, UK country less innovative.
seen as lackadaisical on global warm- well-defined military capabilities and a examine novel technology solutions to It’s time to transcend traditional
Conservatives than even among the ing also risks exacerbating the party’s convincing willingness to use them, but allow CBDC users to enjoy as much Netanyahu is being held management methods and embrace
centre-left in France and Germany. problem with millennials. also credible signals of an intention to “cash-like” privacy as possible. The technology intelligently. By replacing
It’s a similar story with proposals to But, more important, making green avoid using those capabilities to public should have absolute confidence captive by extremists complacency with innovation,
tax frequent flyers, or to triple invest- policies into a wedge issue will apply a threaten the most vital interests of that their data is confidential. History demonstrates that you businesses can forge a path towards
ment in renewables. The British public brake just at the point when the UK’s your adversary, in this case Taiwan’s Technologies such as zero-knowledge should never compromise with or lasting productivity improvements.
overall is much more supportive energy transition is most in need of future unification with China. The proofs and secure enclaves can accommodate extremists because they Luke Hubbard
than those of other wealthy western thrust. The construction of a huge off- authors do mention that some analysts technically enforce privacy while are never satisfied. They will never give Chief Technical Officer
nations, and both Labour and Con- shore wind farm that could increase cite the need for (undefined) protecting system integrity. up their maximalist demands. Screencloud, Bangkok, Thailand
servative voters rank among the Britain’s electricity generation by assurances as a critical part of any Finally, the central bank must This is a lesson that Prime Minister
greenest of all major parties’ backers. three per cent has been put on pause. strategy to counter China. But this is first and foremost embrace its Benjamin Netanyahu has failed to Ireland has enjoyed free
This public support has been Britain had only 2.5 heat pump sales done at the very end of the piece, again responsibility to service citizens in its learn (“Knesset sets judicial reform in
reflected in policy. Britain’s govern- per 1,000 households last year, fewer only in passing. design of CBDC. It is not beholden to motion”, Report, July 25). He is being protection by Nato forces
ment was the first in the G7 to commit than all major European countries and No level of military deterrence, by shareholders but to us, the people. This held captive by ultrareligious and What Dónal Denham doesn’t mention
its net zero ambitions to law, and there far behind the target of 21 installations either side, will reverse the current is an opportunity for a best-in-class nationalist parties that provide the is that for too long successive Irish
were rapid rollouts of solar and wind, per 1,000 by 2028. Government- downward spiral over Taiwan absent solution that sets the standard for all seats in parliament needed for him to governments have been happy to enjoy
alongside the phasing out of coal. funded energy efficiency installations credible assurances that Washington payment offerings for years to come. form a coalition government. He has the protection of UK and Nato defence
Between stagnant wage growth and fell to a record low. remains committed to its “one China” The ability to hold cash and spend it clearly lost control of his government forces without making an equitable
flatlining productivity, the 2010s are Solving these problems takes green policy, and Beijing remains committed without authorisation is an important with extremists now in charge of contribution to the cost (“Irish
rightly considered a lost decade for ambition, but it will pay dividends for to the search for a peaceful resolution source of personal privacy, so it’s dictating government policy, as neutrality move creates UK
Britain, yet amid the gloom was an energy security, household budgets of the issue. entirely natural for people to be wary illustrated by the passage of the bill to conundrum”, Letters, July 24).
under-appreciated success: in 2015, economic growth — and the planet. It The gradual erosion of this original of new technologies digitising this type restrict the use of reasonableness in Admiral Lord West of Spithead
the UK installed as much renewable would be wrong to interpret a close by- understanding underlies the kinds of of money. Open collaboration between judiciary rulings by the Supreme Court. House of Lords,
capacity as any peer country, and up election result and a poorly designed dangerous behaviour we now see in the central banks, regulators and This bodes ill for Israeli democracy London SW1A, UK
until 2017 it decarbonised its economy policy as Britons cooling on net zero. Taiwan Strait. Reporters on the Taiwan technology providers across both the as the ultrareligious and nationalist
at a faster rate than any peer country. The British public — including Conserv- situation need to recognise this reality public and private sectors will be key in parties seek to impose their vision on
But the green boom fizzled out. ative voters — is fully behind ambi- more clearly and put it at the centre of fostering the necessary consumer trust Israeli society, which is diametrically Correction
First, in 2015 the Conservative govern- tious green growth. Confident parties their writing. to make this transition credible. opposed to a secular democratic state
ment in effect banned new onshore and leaders would channel those sen- Michael Swaine Jack Fletcher with checks on government power that c The boss of P&O Ferries was involved
wind farms when they sharply tight- timents, not undermine them. East Asia Senior Research Fellow, Head of Policy and Government Relations are supported by the opposition. in firing 800 crew over Zoom, not the
ened planning restrictions in England. Quincy Institute for Responsible for Digital Currencies, R3 Steven E Cerier boss of P&O Cruises as incorrectly
Between 2008 and 2014, at least 50 john.burn-murdoch@ft.com Statecraft, Olney, Maryland, US London EC2Y, UK Forest Hills, New York, US stated in an article on July 27.
Friday 28 July 2023 ★ FINANCIAL TIMES 15
Opinion
Europe should not relax this summer — challenges await Poland can
achieve its goals
POLITICS
Leyen’s surprisingly powerful European
Commission, the “EU fix” has consisted
risk. It is with good reason that diplo-
macy with Tunisia’s unappetising gov-
mate to the heart of the Europ ean
project. A lurch to the right in the 2024
gees. But another challenge is even more
decisive in defining Europe’s future. with a more
of forward-looking investment in digital ernment has shifted into high gear. Nor European elections would put von der Before 2022, Brussels, Paris and Ber-
Adam
Tooze
infrastructure and the green energy
transition. Faced with the pandemic,
is it coincidence that Germany and Italy
are pushing a hydrogen pipeline that
Leyen’s formula in question.
Vox’s failure in Spain has for now
lin all preferred to hold Ukraine at arms-
length. Putin’s aggression has robbed
open approach
t h i s f o r m u l a u n i t e d E u ro p e a ro u n d offers development prospects for north allayed fears of a nationalist populist them of that option. Ukraine’s EU acces-
common borrowing. It has since been A f r i c a . E x t e n d i n g t h e Nex t G e n e r a - surge. But their challenge dragged the sion is now squarely on the agenda. It is
adapte d to me et Vladimir Putin’s tionEU investment agenda to the wider entire agenda of Spanish politics to the arguably the most daunting challenge
aggression in Ukraine, the challenge of Me d i t e r r a n e a n w o u l d b e l o g i c a l . A right. And the same appears to be hap- t h e E U h a s e ve r f a c e d . T h e € 70 b n i n Grzegorz
t moments of stress, the EU America’s Inflation Reduction Act and rational long-term strategy would envi- pening with the CDU in Germany under civilian and military aid currently under Kołodko
i nvo ke s Je a n Mo n n e t ’s escalating tension with China. pressure from the AfD. As the centre- discussion are just the beginning. Esti-
maxim that Europe will be Paradoxically, the very success of this r i g h t i n t h e E u ro p e a n p a r l i a m e n t mates of the eventual spending required
forged in crisis and will be
the sum of the solutions
strategy leads conservatives to imagine
Europe’s future lies in returning to a
Ukraine’s accession is showed in their abortive effort to sabo-
tage the nature restoration law, von der
run to more than €400bn for a state that
is not yet a member of the bloc.
adopted to address those crises. That is normality defined by fiscal rules dating arguably the most Leyen’s own party cannot be counted on One can imagine stretching the Green wenty-seven years ago, on
comforting when you are in the thick of back to the early 1990s. This is wishful daunting problem to support the green agenda in the face D e a l i nve s t m e n t f o r m u l a e ve n ove r July 11 1996, as Poland’s
it. But when you emerge from the state thinking. It may be complacent to say of farmer protest. Ukraine. But that does no justice to the deputy prime minister and
of emergency, as Europe seems to be so, but a repeat of the eurozone crisis of the EU has faced After the po pollitical invesesttment of the fundamental political decision that will finance minister, I signed
doing this summer, it forces the ques- the 2010s is not Europe’s main worry pastt fi
pas fivve year
earss, a rig
rightw
htwing
ing lur
lurch ch tha
thatt b e ne ce ssary to accommo date a war- the ac t of acce ssion to the
tion: what crisis comes next and what right now. No doubt a big banking or sion a managed migration programme, stunted Europe’s green programme battered nation of 38mn as an EU mem- OECD. This paved the way for my coun-
will be the solution? public debt crisis would find Europe’s backed by large public investment. would be tantamount to an identity cri- ber. The first decision will come in Octo- try to join the EU less than eight years
Sometimes this questioning of fiscal and monetary architecture want- The chances of realising that kind of sis for the EU. A further escalation of ber on Ukraine’s progress towards later. Where does Poland stand now, as it
Europe’s future is a distraction. To think ing. The fiscal rules and the role of the pragmatic sustainable dev eveelopment xenophobia at the same moment — with accession negotiations. If we apply Mon- prepares to take over the EU ’s six-
a lw ays i n t e r m s o f c r i s i s — a s i n t h e European Stability Mechanism remain thinking depends on not crushing Italy’s Giorgia Meloni rather than von net’s maxim, it is the solutions found or month rotating pres esiidency in January
anglosphere’s endle ss scepticism contentious. But bond markets are calm Europe’s economy with arbitrary and der Leyen as the champion — is a very not to the Ukraine crisis that will define 2025? We held this prestigious position
t o w a r d s t h e e u ro — u n d e re s t i m a t e s and Europe weathered the US and Swiss decades-old fiscal rules. It also depends ugly prospect. the EU for the foreseeable future. for the first time in 2011, but left no last-
resilience. But, sometimes, it is pre- banking crises this year well. on preserving a political balance. It was In the ele c tion to the parliament in ing trace on the process of European
cisely the right question to ask. A n e s c a l a t i n g re f u g e e c r i s i s i n t h e the centrists’ political victory in 2019 2024, Europe’s voters will make an The writer is an FT contributing editor and integration. How will matters turn out
S i n c e 2 0 1 9 , u n d e r Ur s u l a vo n d e r Medit diter
erran
raneean is a big bigger
ger imm
immeedia diate
te that allowed Brussels to promote cli- important choice on climate and refu- writes the Chartbook newsletter next time?
With national elections due later this
year, we do not yet know who will be
governing Poland in 2025. But we do
Efi Chalikopoulou
know a great deal about the views of the
rightwing Law and Justice (PiS) party,
loathing in
de sirable. Prime Minister Mateusz
Morawiecki likewise says that strength-
ening the transatlantic community “is
the most imp ortant task of our [EU]
presidency”. This approach does not
bode well.
not con
confus
fusee the EU
doees. To mak
most of the Polish presidency, we should
EU’’s resp spons
many of which are primarily economic
makee th
onsibi
ibilit
litie
thee
iess,
NatWest saga shows running a bank is more of a high-wire act than ever So where is Poland in this rapidly
c h a n g i n g wo r l d ? T h e a n s we r t o t h i s
que stion is imp ortant , but the most
important aspec t is that things do
improve over time. Doubtless the situa-
h o u r s b e t we e n t h a t e n d o r s e m e n t a n d banks into the spotlight, not just s e x o f f e n d e r Je f f re y E p s t e i n w h i l e a t Finding top bankers means fishing in a tion, in terms of happiness, would be
Philip her abrupt departure were the signals NatWest. Its great rival, Barclays, which JPMorgan. Just the year before, the small pond, while Rose’s public defenes- even better if not for the often nasty
Augar from Number 10 and 11 Downing Street unlike NatWest does not have UK plc as Barclays board had investigated that tration — some of which has been p o l i t i c a l a t m o s p h e re c a u s e d b y t h e
t h a t h e r a p o l o gy a n d t h e b o a r d ’s a shareholder, is on its fifth chief execu- relationship and expressed full confi- unnec ecesesssarily vindictive — may cause quarrel between the ruling coalition and
response were not enough. Off she went. t i ve s i n c e t h e c r i s i s a n d t w o o f t h e m dence in their chief executive. But the some potential chief executives to think aspiring opp osition. The Happine ss
It is part of a pattern. Since the finan- h av e b e e n f o r c e d t o l e av e a f t e r t h e regulators carried on with their own twice, despite the financial rewards. Index also takes into account trust in
cial crisis first broke, three out of the authorities intervened. In 2012, Bob inquiry, took a different view and Staley Meanwhile her nemesis, Farage, is government and the extent of corrup-
he financial crisis of 2008 four chief executives at NatWest and its Diamond became a scapegoat for left to fight his corner. calling for Davies and the entire board to tion in p olitics and busine ss. In this
turned banking into a prered decessor RBS have left suddenly the industry-wide Libor interest-rate That’s a lot of big banking beasts to go. Both board and chair do have some respect, the situation has deteriorated
highly political business, after political intervention. The first to r i g g i n g s c a n d a l. W h e n t h a t s c a n d a l have stood down after official interven- q u e s t i o n s t o a n s we r b u t w h o l e s a l e under the rule of PiS. Perceived levels of
guaranteeing the sustained go was Fred Goodwin in 2008. He had broke, Diamond waived his bo bonnus but t i o n f o l l ow i n g i n i t i a l b o a r d b a c k i n g . change is unrealistic and unwise at an corruption have increased since 2014.
i n t e re s t o f g ove r n m e n t s driven the bank on to the rocks with an A more vigorous regulator, the politici- institution that is at long last financially I believe the upcoming elections in
and their arm’s length bodies. Especially overambitious growth plan and hoped sation of banking and more media inter- s t a b l e . I t a l s o a s s u m e s t h a t t h ey c a n Poland will be the most important in
in the UK, where the now discredited
light-touch regulation was once an
to stastay
ay on as par partt of a rescu scuee pla
not surprisingly given the mess the bank
plan n. But Such public defenestrations est have changed the dynamic for senior
e xe c u t i v e s a n d b o a r d s. U n d e r a n y
be replace d easily, an assumption
that should not be taken for granted
Europe this year. Poland is now some-
times viewed as a flawed democracy,
article of faith, the authorities have was in, the government required his may cause some potential circumstances, banks are complex busi- givevenn t h a t t h ey a p p e a r t o b e s e r v i n g w h i c h i s n o t w h a t I ex p e c t e d w h e n I
s t e p p e d i n w h e n e ve r t h e y s u s p e c t resignation as part of the state bailout. chief executives to think nesse
ne ssess to run wit with h man
manyy int interl
erloockin
kingg governments as well as shareholders. signed our OECD accession more than a
weak governance. This turns running His successor Stephen Hester patiently parts and financial risk management It is an uns unsatiatisfa
sfacctor
toryy sit
situat
uationion but quarter of a century ago. Before the elec-
a bank into a high-wire act where the s t e e re d t h e b a n k o u t o f t ro u b l e b u t twice about the role always looks easier in hindsight. But the the industry has only itself to blame tions that brought PiS to power in 2015,
r i c h r e w a r d s f o r s e n i o r e xe c u t i v e s made a sudden exit after five years, additional dimension of heightene d following decades of mismanagement. things were better.
a re a c c o m p a n i e d b y t h e r i s k o f ve r y apparently at then chancellor George the Barclays board wanted to keep him reputation risk and intense political It will only get the authorities off its back When making our choices in 2023,
public humiliation. Osborne’s bidding. His successor, New in po
posst. The authorities
es,, in this case in scrutiny makes solving a Rubik’s Cube a if its governance becomes as muscular let’s not make a mistake. Openness and
That is the context for this week’s Zealander Ross McEwan, succes esssfully the form of Bank of England governor doddle by comparison. as the government on which it relies pro-Europeanness are the best way for
enforced resignation of NatWest’s chief lasted the course but then came Mervyn King, would have none of it and NatWest’s latest mishaps now leave it in times of crisis. And that is perhaps Poland to achieve its most important
executive, Dame Alison Rose, just hours Rose and NatWest’s third government- the board was forced to change its mind. looking for a new chief executive as well the intended message behind the goals. This is the way to a better future.
after the board left her in post, deliver- induced exit in just 15 years. The Olym- In 2021, Diamond’s successor but one, as a new chair after Sir Howard Davies recent interventions.
i n g o n ly a re b u ke ove r h e r h a n d l i n g pic Games come round nearly as often. Jes Staley, resigned after Barclays’ regu- let it be known this year that he planned The writer is economics professor at Koz-
of the banking affairs of politician It is becoming quite a habit. The polit- lators
lat ors rep
eport
orteed on the wa
wayay Stal
taleey had to step down in 2024 . That’s quite The writer is the author of several books on minski University in Warsaw and a former
Nigel Farage. What changed in the seven i c i s a t i o n o f b a n k i n g h a s b ro u g h t a l l characterised his relationship with the some task for the bank’s head hunters. the City and Wall Street finance minister of Poland.
16 ★ FINANCIAL TIMES Friday 28 July 2023
CROSSWORD
No 17,480 Set by PETO
ACROSS
DOWN