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Humanising robots After Isis Critical condition

How ‘neurohacking’ is making us fall Sunni Islamists have been defeated Once a rallying cry, Obamacare has
for machines — JOHN THORNHILL, PAGE 9 before, only to return — PAGE 4 bruised Republicans — BIG READ, PAGE 7

France signals Legal twist Lawyer in spotlight after

latest episode in Russia-Trump saga
i Oil groups hit back against electric push

new era with Saudi Aramco and Shell have hit back at forecasts
that electric cars threaten a collapse in demand for
oil and warned energy security would be at risk if
investment was withdrawn too quickly.— PAGE 11

tax break plan

i Abe to reshuffle as popularity plummets
Japan’s premier has vowed to reshuffle his cabinet
in response to a poll that showed his popularity at a
record low, raising the odds that he will pull back
from his economic stimulus.— PAGE 4

for the wealthy i Fresh Oculus price cut as VR struggles

Facebook-owned Oculus has decided to cut the
price of its Rift virtual reality headset for the second
time this year, as VR continues to struggle to gain
traction among mainstream consumers.— PAGE 11

3 PM Philippe eyes move within a year i Odinga upbeat on fourth presidential bid
Veteran Kenyan opposition
3 Macron pushes pro-business agenda leader Raila Odinga has told
the FT that frustration over
ANNE-SYLVAINE CHASSANY by Mr Macron in May. “It is a discussion soaring food prices and a lack
taking into account our other con- of jobs has shifted momentum
France is considering introducing tax straints, chiefly the goal to get the deficit in his favour.— PAGE 4
breaks for the wealthy as soon as next back within acceptable levels and meet
year to attract more entrepreneurs and our international commitments.” i Free Democrats launch Berlin bid
investors, Edouard Philippe, the prime The backpedalling underlines the del- Germany’s long-established Free Democrats have
minister, has said in an interview. icate balancing act for Mr Philippe launched a manifesto pushing for deep tax cuts and
The move would mark a sharp break between his desire to boost growth and an overhaul of immigration law as the party seeks
from the government of François Hol- the obligation to comply with EU deficit to share power in the next government.— PAGE 3
lande, the former president who caused rules to restore credibility in Brussels.
an exodus of financiers after imposing a It is also part of an aggressive cam- i McKinsey drawn into S Africa scandal
75 per cent income tax on high earners paign by Mr Macron to demonstrate a The firm revealed that Vikas Sagar, a partner in its
at the start of his term and declaring business-friendly posture at a time South African office who allegedly misrepresented
finance “the enemy”. when companies and investors are con- the consultancy in a deal with a Gupta-linked
It would also demonstrate President sidering alternatives to the UK following company, is to temporarily stand down.— PAGE 3
Emmanuel Macron’s willingness to Britain’s vote to leave the EU.
press on with a pro-business agenda Mr Philippe used his first address to i Eritrea modernism recognised by Unesco
despite concerns about its affordability parliament last week to emphasise the The capital Asmara, a 1930s artistic playground for
given the country’s stubborn budget need to curb public spending, which he Italian futurists playing out architectural fantasies
deficit, which last week led Mr Philippe described as a French “addiction”, after in the then colony, has become the first modernist
to suggest tax cuts would be delayed. the country’s public finance auditor city to be designated a World Heritage site.— PAGE 4
Speaking to the Financial Times yes- warned the deficit would exceed the EU
terday, Mr Philippe said he would limit of 3 per cent of economic output.
announce the timing of the reforms to The prime minister suggested some Datawatch
parliament in a matter of days in order flagship tax cuts for businesses and
to give companies and households more households would be pushed back to
clarity on the government’s plan. 2019 so that a €8bn budget hole left by Retiring abroad 108,433 people in
The new regime would exclude Mr Hollande could be plugged. Recipients of the UK state pension Spain receive a UK
investment holdings from France’s However, Bruno Le Maire, economy Yury Martyanov/Kommersant Photo via AP by residence (’000), Nov 2016 state pension, the
wealth tax and introduce a 30 per cent minister, has appealed to Mr Macron to A Russian lawyer known for Financial Times last year, Ms much of her legal career in Mos- 0 50 100 150 second country in
a league of
flat tax on dividends and other invest- implement the tax breaks sooner, say- her campaigning against US Veselnitskaya described herself cow’s suburbs, but her anti- Ireland recipients after
ment earnings. They are currently taxed ing on Sunday that cutting spending and sanctions imposed on her home as “an investigative lawyer” out Magnitsky campaign took her
at more than 50 per cent, rising to 60 per reducing taxes was possible “at the same country has been thrust into to disprove accusations that led to Brussels and Washington. Spain Ireland, where the
total is 134,822. In
cent for the highest earners. time, and now”. Mr Philippe, who will the centre of the running the US Congress to pass the There is little sign she had ties France both countries the
“There is a discussion on whether we decide on the timing with Mr Macron, controversy over the Trump Magnitsky Act, which slapped to senior Kremlin officials. “We Germany number of UK
implement the reform on the wealth tax said he “would love that too” but that campaign’s ties to Russia. sanctions on Russians allegedly don’t know who she is and, nat- EU8 pensioners rose
entirely in 2019 or whether we move it the right balance had to be struck. Donald Trump’s eldest son linked to the death of anti- urally, we can’t track the meet- sharply between
forward, or whether we do in two steps,” Mr Philippe last week outlined meas- has acknowledged meeting corruption whistleblower ings of all Russian lawyers,” 2002 and 2009
Mr Philippe said in his first foreign ures to lure banks from London. Natalia Veselnitskaya during Sergei Magnitsky. said the Kremlin. Source: ONS but has slowed
media interview since being appointed Analysis page 3 the 2016 race. Speaking to the Ms Veselnitskaya has spent Kremlin denies links page 2

London’s blurring of May’s ‘red line’ on

EU judges opens door to softer Brexit
GEORGE PARKER — LONDON bodies covering sectors including have truly left” the EU until Britain’s
nuclear power, medicines and aviation. laws are interpreted in British courts.
European judges could continue to If Mrs May insisted that ECJ jurisdic- The EU had dismissed the idea of a
have sway over Britain for a “limited tion ended immediately in March 2019, “bespoke” transition for Britain, mak-
time” after Brexit, the UK government the projected date of Brexit, it would ing European courts a clear redline.
Shipping deal highlights has conceded, in a development that require Britain to have in place an Officials in Brussels see Britain’s con-
Chinese trade ambitions could pave the way for a softer exit entirely new regulatory regime, creating cessions as a slow but almost inevitable
from the EU. bureaucratic and business upheaval. coming to terms with the practical con-
State-owned China Cosco Shipping’s The UK’s clarification on the ECJ is straints of the two-year talks process.
$6.3bn deal for Orient Overseas — Theresa May, the British prime minis- potentially the most consequential con- “The Brits are discovering the hard way
owner of the biggest container ship — ter, said last year that one of her negoti- cession since last year’s referendum. It as they bump into the limits of what is
symbolises Beijing’s ambitions to ating “red lines” was an end to the juris- opens the door to Britain seeking a tran- feasible,” said one senior EU negotiator.
dominate trade. It pushes Cosco from diction of the European Court of Justice. sitional deal that temporarily ignores Downing Street has already declined
fourth to third in terms of market share However, Mrs May’s office said yes- Mrs May’s other red lines: an end to the to rule out the possibility of Britain con-
and increases pressure on its biggest terday that the court could play a tem- free movement of people and continued tinuing to make EU budget payments
competitors, Denmark’s Maersk and porary role after the UK formally leaves “vast” payments to the EU budget. after March 2019.
Switzerland-based Mediterranean the EU. “The transition rules could The prime minister’s adamant oppo- Some pro-Brexit Conservative MPs
Shipping Company. ‘In five years they involve the ECJ for a limited time. That’s sition to any direct ECJ role beyond 2019 have indicated they might be prepared
could be the largest,’ says one analyst. a matter for negotiation,” it said. has been one of the main constraints on to compromise on some principles dur-
Lex i PAGE 10 The ECJ is the arbiter in disputes British officials looking at exit options, ing a transition period, provided it is
Trade clout i PAGE 15 involving the single market and is the according to senior Whitehall officials. short and has a clear expiry date.
backstop to dozens of EU regulatory Mrs May had said Britain “would not Gideon Rachman & Nicky Morgan page 9

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2 ★ FINANCIAL TIMES Tuesday 11 July 2017


Kremlin denies Brazilian lawmakers debate putting Temer on trial Politics


to vote in favour of him. He is clearly los-
ing support,” said Ricardo Sennes,
bribes from JBS through an intermedi-
ary. Under Brazil’s constitution, a sitting
Neves, a Brazil analyst with Eurasia
Group. Analysts said it would be diffi-

who briefed
Michel Temer, Brazil’s president, is fac- director of Prospectiva, a consultancy in president cannot face a criminal trial cult for Mr Temer’s opponents to mus-
ing the biggest test of his political São Paulo. without the approval of two-thirds of ter the two-thirds of congress necessary
career this week with the beginning of a Brought to power by the impeach- the lower house of congress. to recommend he be tried.
historic debate in congress on whether ment of his predecessor, Dilma Rouss- The supreme court has sent the If Mr Temer’s supporters were able to
he should be tried for corruption. eff, one year ago, Mr Temer has sought indictment to the congress, which began pass a labour reform bill, with a vote

Trump’s son
to overcome low popularity ratings by debating the matter yesterday in its expected this week, that could
Although analysts think the president is pushing labour and fiscal reforms to powerful constitution, justice and citi- strengthen the president, analysts said.
entering the process with the necessary pull Brazil out of its longest recession. zenship commission. As house speaker, Mr Maia would
house majority to survive, speculation is But the reforms have been delayed If the commission recommends that become caretaker president for 30 days
growing that an important coalition ally, after a private conversation was taped the indictment proceed, a full session of if the president was suspended, while
house speaker Rodrigo Maia, is setting in March during which he allegedly dis- the house will vote late this month or in congress elected a replacement for the
himself up as a possible challenger. cussed bribes with Joesley Batista, who August; and if the supreme court subse- duration of the trial.
Veselnitskaya is best known in west If congress approves the court case, at the time was chairman of JBS, the quently accepts the case, the president But although there was speculation
Mr Temer could become the first sitting world’s largest meatpacker. will be suspended for up to six months that Mr Maia was manoeuvring behind
for campaign against Magnitsky Act president of Latin America’s largest Brazil’s independent public prosecu- during his trial. the scenes to offer himself as a possible
country to face a criminal trial. tor’s office has charged Mr Temer in the “The advantage he [the president] alternative leader, the house speaker
“The closer this gets to the 2018 elec- supreme court with “passive corrup- has is that there is a lack of Plan B to would struggle to persuade lawmakers
MAX SEDDON — MOSCOW into,” she told the FT last year. To sup- tion, the harder it will be for lawmakers tion”, for allegedly plotting to receive Temer,” said João Augusto de Castro to back him, analysts said.
port her case, Ms Veselnitskaya
They thought they were getting damag- launched a lobbying campaign of her
ing material from a Russian source on own that appeared to involve Russian
their political opponent. She spotted an officials. Last year, Dana Rohrabacher, a
opportunity to press her campaign to pro-Russian Republican congressman, Monetary policy. Cheap money
roll back US sanctions against Russian told the FT that while he was in Moscow,
officials and help one of her clients.
The disclosure that the US president’s
eldest son, Donald Trump Jr, and son-
in-law, Jared Kushner, met Russian law-
Konstantin Kosachev, a senior member
of Russia’s upper house, asked if he
would “at least take a look at something
that our prosecutors would like the
Canada set to join retreat from stimulus
yer Natalia Veselnitskaya in June last Americans to know about”, related to
year to discuss “helpful” information the Magnitsky case. The congressman
has fed suspicions that the Trump cam- met senior Russian prosecutors who
paign was actively seeking Russian help handed him a dossier that referred to
to undermine rival Hillary Clinton. materials filed in the Katsyv money
So who is Ms Veselnitskaya? And why laundering case.
was she allegedly promising dirt on Mrs Ms Veselnitskaya touted around a
Clinton that it seems unlikely she would film, The Magnitsky Act, accusing Mr
have had? Browder of concocting his story. She
Yesterday Dmitry Peskov, Kremlin organised a premiere in the European
spokesman, said he had never heard of Parliament, which was blocked by Mr
Ms Veselnitskaya. “We don’t know who Browder’s lawyers at the last minute.
she is and, naturally, we can’t track the
meetings of all Russian lawyers domes-
tically and abroad,” he said.
‘We can’t track the
A criminal defence attorney, Ms Ves- meetings of all Russian
elnitskaya normally practises in court-
rooms of Moscow’s suburbs.
lawyers domestically
Last year, however, Ms Veselnitskaya, and abroad’
who declined to talk to the Financial
Times yesterday, flew to New York to According to court documents, Ms
represent a family friend, Denis Katsyv, Veselnitskaya was repeatedly denied a
accused of laundering $14m of the pro- visa to defend Mr Katsyv before secur-
ceeds from an alleged $230m tax fraud ing “immigration parole”. Ms Veselnit-
into US real estate. Mr Katsyv’s com- skaya said she was later strip-searched
pany, Prevenzon Holdings, settled the at Heathrow on her way to New York.
case for $6m in May without admitting The film was shown at the Newseum
wrongdoing. in Washington last June, four days after
The alleged $230m tax fraud became she met Mr Trump Jr and Mr Kushner.
a cause célèbre after it was exposed by Angry Russians in the audience shouted
Sergei Magnitsky, an accountant. Mag- “Shame!” and “Lies!” after it finished.
nitsky died in a Russian jail in mysteri- Many of the allegations in the film,
ous circumstances in 2008 after being seen by the FT, were misleading or inac- At a crossroads: pedestrians are reflected in a window in the financial district of Toronto this week Brent Lewin/Bloomberg
arrested by prosecutors he had accused curate. Mr Browder told the FT that it
of the fraud. Magnitsky’s employer, was part of a Kremlin “smear campaign”
hedge fund manager William Browder against him. with four rate rises starting in December cent despite a runaway housing sector. capacity would probably be closed up by
campaigned for the US to pass sanctions “She had one clear, unequivocal Some economists predict first 2015, while the European Central Bank The central bank has been flag- the fourth quarter.
legislation in 2012 against Russian offi- objective in 2016, which was to repeal quarter-point increase in rates has recently signalled that it is getting ging stability concerns around the Currency and bond traders have been
cials implicated in Magnitsky’s death. the Magnitsky Act,” Mr Browder said. more confident that deflation has been inflated property market and high piling bets on a move on rates this week
Vladimir Putin, Russian president, Ms Veselnitskaya also hired Rinat since 2010 will be approved defeated in the eurozone. Some Bank of household indebtedness, which stands since Carolyn Wilkins, deputy governor,
banned US adoptions of Russian chil- Akhmetshin, a Washington-based fixer England policymakers have hinted that at 170 per cent of disposable gave a speech on June 12 saying that
dren in response. for Russian oligarchs. it could lift rates, while Norway’s central income. But Derek Holt, an economist with the oil price crunch past, the econ-
Ms Veselnitskaya used an audacious Ms Veselnitskaya presented herself at bank last month ditched guidance that at Scotiabank, said that if the central omy was picking up.
argument in defence of her client, Mr the European Parliament premiere as a The Bank of Canada is preparing to join it could cut borrowing costs. bank had felt driven to use monetary The claim by Mr Poloz later that
Katsyv: it was Mr Browder who was member of an organisation fighting to the swelling ranks of advanced econ- Among the big exceptions is the Bank policy primarily to rein in the property month that the 2015 cuts had “done
guilty of the $230m tax fraud and overturn the Russian adoption ban. The omy central banks that are pulling back of Japan, where the leadership appears market, it could have acted a lot sooner. their job” was taken as a further signal
arranged Magnitsky’s death to cover it organisation was registered at a PO box on their emergency stimulus as inves- committed to its bond buying. But the that the reductions might be reversed.
up. “I’m the real investigative lawyer at an address previously used by Mr tors bet that it could push through the prospect of tighter policy around the However, some economists, including
that he is trying to build Magnitsky Akhmetshin, who denied any link. first increase in its key rate for seven world has triggered turbulence in bond
The prospect of tighter at Goldman Sachs, question whether the
In April, the Senate judiciary commit- years as soon as this week. markets over recent days as investors policy around the world central bank will be ready to move as
tee asked the Department of Homeland In a sign of confidence in what G20 who have taken advantage of years of soon as tomorrow.
Security to investigate Mr Akhmetshin leaders said this weekend in Hamburg cheap money reassess the outlook.
has triggered turbulence A further question is what kind of
for potential violations of lobbying laws. were “encouraging” global growth pros- Larry Hatheway, chief economist at in bond markets guidance it will issue after its deci-
The committee said he conducted “sub- pects, the Bank of Canada has been GAM, which oversees $130bn of assets, sion. Canada is no exception to the puz-
versive political influence operations sending increasingly hawkish signals in said: “In more and more parts of the Stephen Poloz, Bank of Canada gover- zle that is clouding central banks across
often involving disinformation and recent weeks. world the economy has reached a stage nor, might instead be spurred into the advanced economies — while jobs
propaganda”. Some economists predict it will con- where this extraordinary monetary pol- action by robust employment growth, growth has improved and activity
Mr Browder said: “There’s no mystery clude its policy meeting tomorrow with icy is no longer warranted by the funda- he said, as well as diminishing spare has rebounded, inflation remains mori-
about her background. the first quarter-point increase in rates mentals. We have the restoration of full capacity in the economy. bund.
“I’d be surprised that anyone who had since 2010, as policymakers in Ottawa employment, but also financial condi- The Bank of Canada might also be In Canada, core inflation is just
done their due diligence would have consider removing the extra support tions are generally accommodative as encouraged by an easing in interna- 1.4 per cent, below the central bank’s
Natalia Veselnitskaya: expensively agreed to meet with her, considering her they implemented in the teeth of the asset prices have recovered. This is tional risk factors, among them the 2 per cent target.
dressed and practises in Moscow sketchy CV.” 2015 oil rout. prompting central banks to embark on diminished threat of a border tax Mark Chandler, a strategist at RBC
Even if it holds fire, the more bullish normalisation of policy, including in imposed by the US as well as hopes that Dominion Securities, said that the cen-
noises from the bank puts it on a grow- Canada, even in the face of low infla- the North American Free Trade Agree- tral bank need not lift rates steeply,
ing list of central banks that are prepar- tion.” ment would not be torn up. given the depressed level of infla-
ing to pare back their accommodation, Canada previously lifted rates in 2010 “Something else had to bring them off tion. But he said he expected the Bank of
MAKE A SMART INVESTMENT or at least suggesting they will slow
down their stimulus programmes.
only to trim them in 2015 as the oil price
dive hit its energy sector. Since then the
the sidelines, and it is eroding slack,” Mr
Holt said. He added that two of the cen-
Canada ultimately to go beyond just tak-
ing back the half-point of rate cuts it
Subscribe to the FT today at The Federal Reserve has led the way Bank of Canada has held rates at 0.5 per tral bank’s preferred measures of spare introduced in 2015.

FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00

Trump vs the Valley

Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
A Five Star plan?
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
Dear Don...
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12 Technology
HMRC warns Lloyd’s of Brussels Insurance market UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80

Chinese city paves way for ‘unhackable’ communications

to tap new talent pool with EU base
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the

being swamped i Report outlines longer NHS waiting times

A report on how the health service can survive CHANGING AN
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

i Emerging nations in record debt sales Warning: this article may be


Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting — LIFE & ARTS
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
3 Fivefold rise in declarations expected
A survey has revealed that a
record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen How To Spend It
JAMES BLITZ — WHITEHALL EDITOR adjust its negotiation position with the in London. Work began on

engulfed in
EU, a Whitehall official said. “If running almost one tower a week
A computer system acquired to collect our own customs system is proving during 2016.— PAGE 4
duties and clear imports into the UK much harder than we anticipated, that
may not be able to handle the huge ought to have an impact on how we i Tillerson fails to ease Turkey tensions
surge in workload expected once Britain press for certain options in Brussels.” The US secretary of state has failed to reconcile

fresh tax probe

leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland
March 2019, when Brexit is due to be complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
completed, and the chair of the probe linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
said confidence it would be operational tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
in time “has collapsed”. HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

which lies between the two cities, as an used by commercial banks across the Byrnes, a quantum physicist at New
Setting up a digital customs system CDS, indicating it would be delivered on
has been at the heart of Whitehall’s time. But last month, it wrote to the i HSBC woos transgender customers
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
committee saying the programme had
been relegated to “amber/red,” which
means there are “major risks or issues
The bank has unveiled a range of gender-neutral
titles such asROBINSON — BRUSSELS
“Mx”, in addition
Ms, in a move to embrace diversity and cater togather
it followed “a strategy offull client tax
to Mr, Mrs, Misscompliance”
or but was still trying to
the information about the probes. YUAN YANG — BEIJING
About 53 per cent of British imports apparent in a number ofkey areas”. Credit
needs Suisse hascustomers.
of transgender been targeted by
— PAGE 20 HM Revenue & Customs said it had
come from the EU, and do not require HMRC said last night: “[CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
checks because they arrive through the track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
single market and customs union. But and it will be able to support frictionless back Switzerland’s attempts to clean up dering by “a global financial institution

inter-city hub to route messages. two cities’ financial hubs and by the gov- York University’s Shanghai campus.
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.”
Terror attacks inwith
co-operating western Europe after
offices in London, Paris and Amsterdam
were contacted
Highlighted attack byOthers

Published daily except Sundays, New Year’s Day,

The Swiss bank said yesterday it was tax authority added: “The international
notably the message
— of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.”
local officials
The lure of the exotic
Robin Lane Fox on the flair

A Chinese city has successfully trialled

“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
to hit 300m.
The revelations about the system,
HMRC’s letters to the select commit-
tee, which will be published today, pro- AFP Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint- of foreign flora — HOUSE & HOME
called Customs Declaration Service, are vide no explanation for the rating Lloyd’s of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem- parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

330 Hudson Street, Presidents’ Day, Good Friday, Memorial Day, Labor
while Australia’s revenue department and Nice, and the while French officials said their
likely to throw a sharper spotlight on change, but some MPs believe it was sels over “five or six” other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed “several

Quantum key distribution (QKD) ernment. “It’s amazing how quickly China has
whether Whitehall can implement a caused by Mrs May’s unexpected deci- cities in its decision to set up an will be reinsured back to the homes for the industry. But Paris bombings — have
host of regulatory regimes — in areas sion to leave the EU customs union. EU base to help deal with the syndicates at its City of London Mr Nelson said the city won on The inquiries threaten to undermine thousand” bank accounts opened in
bucked the trend
ranging from customs and immigration Timetable & Great Repeal Bill page 2 expected loss of passporting headquarters, pictured above. its transport links, talent pool efforts by the country’s banking sector Switzerland and not declared to French
of generally low
to agriculture and fisheries — by the Scheme to import EU laws page 3 rights after Brexit. The Belgian capital had not and “extremely good regula- to overhaul business models and ensure tax authorities.
fatalities from
time Britain leaves the EU. Editorial Comment & Notebook page 12 John Nelson, chairman of the been seen as the first choice for tory reputation”. customers meet international tax The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in

an “unhackable” communications net-

requirements following a US-led clamp- western Europesaid it was “astonished at the way this
Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14

New York, NY 10013 essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.

Day, Martin Luther King Day, Thanksgiving,

down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland”. It
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

networks are more secure than widely The trials involved sending secure gotten on with quantum research
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
banker loses job over WhatsApp boast
EU’s judicial liaison body.

Christmas Day and the day after Christmas Day.

evade tax. It agreed to fines of $2.6bn.
How high earners can evade

work, raising hope of a rollout of the

Credit Suisse, whose shares fell 1.2 per Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether- Houlder in London, and Michael Stothard a pension headache — FT MONEY
lands, France and the UK. The bank said in Paris Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library

used electronic communication forms. information between 200 different ter- projects that would be seen as too
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to

Subscriptions and Customer Service

Christopher Niehaus, a former Jeffer- ban people from installing apps on their
ies banker, passed confidential client private phones.
Brussels takes tough stance on Brexit
A boastful WhatsApp message has cost
a London investment banker his job information to a “personal acquaint- Andrew Bodnar, a barrister at Matrix
ance and a friend” using WhatsApp, Chambers, said the case set “a precedent

world’s first widescale commercial

and a £37,000 fine in the first case of
Shutdown risk as border according to the FCA. The regulator said in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57

wall bid goes over the top nications over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything
chat app. to his employer voluntarily. else”.

Tel: +1 800 628 8088 US subscription rates, 1 year $406. Periodicals

Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus

A classical channel, such as a telephone minals in Jinan over a network covering expensive to do elsewhere.”
avert a US government shutdown after The fine by the Financial Conduct confidential information on the messag- included the identity and details of a
April 28 have resisted Donald Trump’s Authority highlights the increasing ing system “on a number of occasions” client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
attempt to tack funds to pay for a wall problem new media pose for companies last year to “impress” people. Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
on the US-Mexico border on to that need to monitor and archive their Several banks have banned the use of boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

application of quantum communica-

stopgap spending plans. They fear staff’s communication. new media from work-issued devices, his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require “existing regulatory, budgetary,
that his planned $33bn increase in Several large investment banks have but the situation has become trickier as Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-,
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
postage paid at New York, NY and at additional
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

or internet cable, can be tapped by an several hundred square kilometres. China made another research break-
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and
US budget Q&A and accessed without permission from the issued BlackBerrys. for comment. About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned Bankers at two institutions said staff Additional reporting by Chloe Cornish today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
WhatsApp from work-issued Black- are typically trained in how to use new Lombard page 20 wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possible if certain conditions are met.

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will pile pressure on English councils,
which will have to pay care workers a
lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
mailing offices; Post-Master. Send address changes
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
that the EU negotiating stance was
largely “constructive”, with one saying it
was “within the parameters of what we
were expecting, perhaps more on the
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

eavesdropper without the sender or Aside from increasing the security of through last month when its quantum new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
Tel: 0800 298 4708 expected to cost councils’ care services Spain the right to veto any EU-UK trade insistence on a continuing role for the Reports & analysis page 3
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The local government of Jinan, in east- recipient being aware. But if a quantum payments and other financial services, satellite — the first in the world — sent a
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 4011.01 4011.80 -0.02 SFr per € 1.069 1.072 SFr per £ 1.244 1.238 price prev chg Chicago, San Francisco, Washington DC, Orlando,

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CAC 40
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24301.09 24392.05 -0.37 Oil Brent $
297.99 297.73 0.09 Gold $
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5914.34 0.07 $ per £
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1.249 £ per $
0.859 € per £
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0.932 US Gov 10 yr
0.801 UK Gov 10 yr
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FTSEurofirst 300 1503.03 1500.72 0.15 ¥ per $ 111.430 111.295 ¥ per € 119.180 119.476 Jpn Gov 10 yr 100.36 0.07 0.00
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ern China, told the Financial Times yes- channel is tapped, it alters the informa- the network would make it almost message to Earth on a quantum com-
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Fax: +44 20 7873 5938, © Copyright The Financial Times Limited 2017. All
FTSE All World $ 297.38 298.11 -0.24 Gold $ 1244.85 1248.80 -0.32 Prices are latest for edition Data provided by Morningstar rights reserved. Reproduction of the contents of this terday that its departments would begin tion being relayed, and the disturbance impossible for other governments to lis- munication channel.
Executive appointments newspaper in any manner is not permitted without using the network by the end of August. alerts the parties using it that something ten in on Chinese communications, “Quantum communication has been the publisher’s prior consent. ‘Financial Times’ and
‘FT’ are registered trade marks of The Financial
“We plan to use the network for is amiss. once properly implemented. taken up by the commercial sector
Published by Times Limited. national defence, finance and other In QKD networks, a secure crypto- Chinese policymakers have been con- much more in China compared to other
F.T. Publications Inc. 330 Hudson St, New York, fields, and hope to spread it out as a pilot graphic “key”, or password, is sent cerned about protecting domestic cyber countries, which means it is likely to
NY 10013, USA; The Financial Times and its journalism are subject to that, if successful, can be used across between two parties over the network, space since whistleblower Edward pull ahead of Europe and the US in the
Tel: +1 917-551-5000; a self-regulation regime under the FT Editorial Code
Editor: Lionel Barber of Practice: China and the whole world,” said Zhou which they can use to encrypt future Snowden’s revelations of US-sponsored field of quantum communication,” Mr
Fei, assistant director of Jinan Institute communications. If the key is interfered internet surveillance and amid growing Byrnes added.
Printed by Reprints are available of any FT article with your of Quantum Technology, the research with, the two parties know not to use it. awareness of the cost of hacking attacks. Switzerland, Austria and Japan
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Evergreen Printing Company, Bellmawr, NJ licences for reproduction of FT articles are also The result is a boost for the Beijing- to host the world’s longest land-based poured into quantum research. mostly for use by universities doing
Southwest Offset Printing, San Jose, CA available. For both services phone +44 20 7873 4816, Shanghai quantum network, which is quantum communication channels, “China has achieved staggering things research on the technology.
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under construction. This uses Jinan, stretching over 2,000km, and will be with quantum research,” said Tim Additional reporting by Xinning Liu
Tuesday 11 July 2017 ★ FINANCIAL TIMES 3


Manifesto launch South Africa

German liberals push for deep tax cuts McKinsey

drawn into
Free Democrats’ best The FDP’s best hope of being in gov-
ernment is if Chancellor Angela Merkel,
ner. Mr Lindner declined to describe Ms
Merkel’s conservatives as his “favourite
1949. But voters turned against it four
years ago after party leaders failed to
“A lack of patience is also a virtue,”
says the manifesto.
hope for power sharing
lies in victory for Merkel
who has a strong lead in opinion polls,
wins September’s election. Lawmakers
partner” but said the programme of the
CDU and its Bavarian sister party, the
make their mark in Ms Merkel’s govern-
ment and were cast as her stooges.
Manfred Güllner, head of the Forsa
polling agency, said: “The FDP appeals
Gupta family
say the FDP could form a coalition with
her Christian Democrats if it does well.
A three-way government with the
Christian Social Union, was “close” to
the FDP’s. The latest opinion poll from
the Emnid agency puts the CDU/CSU on
Mr Lindner, a former businessman
and ex-amateur racing car driver, has
revived morale, with the FDP perform-
to the middle classes — skilled workers,
entrepreneurs and self-employed pro-
fessionals . . . [who] want somebody to
Germany’s Free Democrats advocated Greens is also possible. 38 per cent, the SPD on 25 per cent and ing strongly in regional elections in May stand up to the two big parties.”
deep tax cuts and an overhaul of immi- However, Mr Lindner said he thought the FDP, the Greens and the Left party in Schleswig-Holstein and in North The party promises to slash taxes by JOSEPH COTTERILL — JOHANNESBURG
gration law as the party launched its a renewal of the CDU’s current “grand all on 7-8 per cent. If repeated in Sep- Rhine-Westphalia, the most populous €30bn over the 2017-21 term, far more
The consultancy McKinsey has been
election manifesto yesterday hoping to coalition” with the Social Democrats tember, this would leave a CDU/CSU- state and Mr Lindner’s home turf. than the €20bn or so pledged by Ms
drawn into the scandal around South
share power in the next government. was “most likely” and warned his party FDP coalition close to a majority. Parties The FDP, based on commitments to Merkel’s bloc, with cuts funded by fore-
Africa’s powerful Gupta business fam-
The liberal party was routed in the against over-optimism. “We are not in need to win at least 5 per cent of votes open markets, personal freedom, a cast tax revenue increases.
ily after revealing that a partner who
2013 election and lost its place in the the Bundestag . . . A bit of modesty is cast to gain Bundestag seats. small state and low taxes, is fighting the Europe would be “the top political
allegedly misrepresented the firm in a
Bundestag but is confident of returning called for,” he said. The FDP has been a junior coalition campaign with promises to cut red tape issue” in Germany into the 2020s, said
deal with a Gupta-linked investment
to national politics under Christian Ms Merkel is aiming to win a fourth partner, mostly for the CDU, for about and accelerate modernisation by invest- Mr Lindner, who supports talks over
company would temporarily stand
Lindner, who has overseen a recovery in term as chancellor but is almost certain half the years since West Germany’s first ing in digitalisation, high-speed broad- eurozone reform as France’s President
support and regional election successes. to have to govern with a coalition part- post-second world war elections in band and technical education. Emmanuel Macron has proposed.
McKinsey said that Vikas Sagar, a direc-
tor in its South African office, would
take a leave of absence to allow an inter-
nal investigation to proceed after he
Interview. Edouard Philippe “inaccurately characterised” the con-
sultancy’s ties with Trillian Capital, a

French PM faces ‘Macronism’ dilemma company owned by Salim Essa, a close

business associate of the Guptas.
The move demonstrates how interna-
tional companies have become entan-
gled in the fallout from allegations that
the Guptas used their friendship with
Premier keen to stimulate jobs President Jacob Zuma to obtain lucra-
on the one hand while meeting tive state contracts and sway public
appointments — referred to locally as
EU deficit limit on the other state capture — to bolster their mining-
to-media business empire.
The long-running Gupta scandal has
MICHAEL STOTHARD — PARIS cast a shadow over the Zuma presidency
and fuelled tensions within the African
Edouard Philippe owes his job to Presi- National Congress, which will choose
dent Emmanuel Macron. But France’s Mr Zuma’s successor in December.
prime minister makes no claims that his McKinsey acted after evidence
boss’s reformist presidential agenda is a emerged that Mr Sagar wrote to Eskom,
radically new ideology. South Africa’s state-owned power
Rather, in his first foreign media monopoly, last year stating that the firm
interview, Mr Philippe shows loyalty to had subcontracted certain services to
his former party by suggesting that Trillian.
“Macronism” is the direct legacy of The consultancy said that managers
Alain Juppé, the unsuccessful centre- in its South African office had been “sur-
right presidential hopeful and Mr prised to learn” of Mr Sagar’s letter to
Philippe’s mentor in politics. Eskom, which was revealed in an inves-
When it is suggested that the govern- tigation into Trillian’s alleged involve-
ment’s plans for a more flexible labour ment in state capture. The consultancy
market, tax cuts for businesses and said it had “carried out work with Tril-
emphasis on public spending curbs lian at Eskom, but did not have a formal
were all rightwing measures, Mr subcontract with them” and did not hire
Philippe bursts into laughter. “Yes, what Trillian as a local supplier.
did you expect?” he says. Both the Guptas and Mr Zuma have
In his office in the Matignon palace, denied the accusations of corruption,
Mr Philippe, who was a senior party which have been fuelled by recent email
leader in the centre-right Republicans, leaks that exposed an alleged complex
tells the Financial Times: “I feel that web of influence from the Guptas to the
what we’re implementing here is com- heart of the ANC.
patible with what we defended in Alain Last week Bell Pottinger, the British
Juppé’s presidential programme. I feel public relations adviser, apologised for
very much at ease with myself.” work it had done for a company owned
Yet, like his role model Mr Juppé — by the Guptas, saying its management
who as Jacques Chirac’s premier became High ratings: future policies to the lower house. Then property taxes, costing €10bn, could ‘We are Mr Philippe says the message to the had been misled over “inappropriate
the most loathed French politician of Edouard after Mr Philippe told MPs that flagship also be implemented as soon as 2018. world is that France is open for business and offensive” social media campaign-
the mid-1990s — Mr Philippe is discov- Philippe in his tax breaks would have to be delayed to “We are discussing the pace of the discussing and serious about curing its “addiction” ing linked to the contract. Bell Pottinger
ering the inherent challenges of his job. office at the bring France’s deficit in line with EU measures, taking into account our other the pace to public spending. was widely accused in South Africa of
French prime ministers of all stripes Matignon rules, economy minister Bruno Le constraints,” Mr Philippe says. “More Born in Rouen to teachers, the prime inciting racial tension to divert criticism
have found themselves stuck between a palace, Paris Maire seemed to push for earlier adop- than the measures, what matters is the of the minister graduated from ENA, the elite of the family.
president with vast executive powers, Leo Novel tion, appealing to the president himself. direction. The main goal is visibility. No measures, school that grooms France’s top civil The Trillian investigation was
who typically uses his premier to deliver Mr Philippe, who as mayor of the Nor- matter what, by the end of the year, we servants. He became a lawyer at the launched last year by Tokyo Sexwale,
the bad news, and an ambitious cabinet mandy port of Le Havre used to take out will pass a bill detailing the timing of all taking into Conseil d’Etat, France’s Supreme Court, the company’s outgoing chairperson
of ministers. Michel Rocard, the reform- his frustrations by boxing three times a the fiscal measures for the next years.” account before helping Mr Juppé found the and a senior member of the ANC. Mr
ist Socialist premier who became week, sounds philosophical about the The backtracking highlights Mr Union pour un Mouvement Populaire, Sexwale called for the probe following
François Mitterrand’s punchbag, went whole affair. He says that like Mr Le Philippe’s dilemma in trying to stimu- our other the centre-right party later renamed allegations that executives at Trillian
so far as to describe the French premier- Maire he “would love” to simultane- late investments and jobs with one hand constraints’ Les Republicains by former president were aware that Nhlanhla Nene would
ship as “the Matignon hell”. ously implement Mr Macron’s pledged while making sure that France emerges Nicolas Sarkozy. be sacked as finance minister weeks
Unlike Mr Juppé, Mr Philippe’s tax breaks and meet Brussels’ deficit from Brussels’ so-called excessive defi- Mr Philippe did not need much con- before it was announced in late 2015.
approval ratings are still high: polls limit of 3 per cent of gross domestic cit procedure with the other. vincing to accept Mr Macron’s offer of Mr Sexwale wants the investigation’s
show that nearly two-thirds of French product. But this requires tough spend- Mr Macron wants to turn France into the premiership. report to be included in a judicial
have a good opinion of him. ing cuts, he warns. a resolutely pro-business investment “The president was elected on a very inquiry into state capture.
But the past week has brought his first Mr Philippe admits there are ongoing destination after his Socialist predeces- clear message that was both pro-EU and McKinsey managers decided not to
difficulties. First Mr Macron stole the discussions, to be resolved this week, sor — and former boss — François Hol- pro-business, which is unusual in partner with Trillian as a supplier last
show by choosing to address a joint ses- over reform of France’s wealth tax as lande hit the country’s reputation with France,” Mr Philippe says. “There’s year following concerns over the firm’s
sion of parliament in Versailles, a day soon as next year instead of 2019, as he tax rises that prompted a public “revolt” something quite powerful and deep ownership, people familiar with the
before Mr Philippe’s formal speech on indicated last week. A plan to scrap of entrepreneurs. happening in this country.” matter said.

Social Democrats Pakistan

Denmark’s centre-left defends closer links with populists Sharif report sparks conspiracy claim
RICHARD MILNE — COPENHAGEN world war the social democrats are in the new leadership of the Social Demo- with its roots in the neo-Nazi move- KIRAN STACEY — NEW DELHI relative of Mr Sharif. “A systematic con-
power in just one country — Sweden. crats. ment, is anathema to him. spiracy is being hatched to have a face-
When Denmark’s leading centre-left
“When I started in politics, 13 out of 15 “When you enter Sweden, Norway or Ms Frederiksen argues that too many Pakistan’s governing party has con- off between the government and judici-
politician made overtures to the coun-
EU leaders were social democrats. You Denmark you have the right to almost centre-left parties have failed to make a demned a probe into the premier over ary to send Sharif packing,” he said.
try’s anti-immigrant populist party
compare the situation today with that everything from day one . . . It’s a diffi- bridge between the cosmopolitan elites alleged corruption as a “conspiracy” to The corruption case has proved the
earlier this year, it created ripples that
period and you really have to admit that cult system to combine with a lot of peo- and the often rural discontents. remove him from office, as rumours biggest crisis to face Mr Sharif since he
were felt across Europe.
we are challenged. It’s hard times,” she ple coming. Otherwise our system isn’t “It’s quite obvious that if the Social swirled about the findings of an investi- was re-elected as prime minister in
In a highly symbolic move, Mette Fred- tells the Financial Times. going to stick together,” she says. Democrats aren’t able to connect to gation into Nawaz Sharif filed to the 2013. Business leaders have privately
eriksen, leader of the centre-left Social Ms Frederiksen’s solution is likely to Peter Nedergaard, a professor of polit- those who are most challenged by the Supreme Court yesterday. expressed concern it might cost him his
Democrats, gave a joint newspaper be studied across the continent by cen- ical science at the University of Copen- future or the way our society is develop- job and disrupt the country’s nascent
interview with the head of the Danish tre-left parties seeking to stem a seem- hagen, says this scepticism is merely a ing, then we are not a real Social Demo- Mr Sharif has been under investigation economic recovery.
People’s party. ingly inexorable decline. crat party. since last year after revelations from the An army crackdown on militants in
Under Ms Frederiksen, who became So far, her approach is having some She adds: “I feel sad when I see poor, Panama Papers leak, when about 11m Pakistan’s tribal areas over the past few
party leader following their election success. Denmark’s minority three- Social Democrats’ unemployed people in the US voting for documents were leaked from Mossack years has helped reduce terror attacks
Mette Frederiksen
defeat in 2015, the Social Democrats party rightwing government is loosely has supported Trump. They are voting for him because Fonseca, a Panama-based law firm. and fuel growth, which hit a 10-year
have supported DPP policies including a backed by the DPP. policies of the anti- they could not find a voice for them in Information came to light that showed high of 5.3 per cent in 2016-17.
call for a ban on prayer rooms in univer- But the opposition Social Democrats immigrant Danish the Democratic party. I need to avoid his two sons and daughter owned off- But the achievements have taken
sities and schools. The two parties have have consistently polled as the largest People’s party that in Denmark.” shore companies and assets not shown place against the backdrop of growing
united to block a government-backed party by about 5-10 percentage points in Ms Frederiksen says her priority is to on his family’s wealth account. criticism of Mr Sharif and his family
reform to lift the pension age and have recent surveys. This strategy could yet return to Social Democratic roots. He rebuild the social contract in Denmark. In April, the Supreme Court ordered since the publication of the leaked
even refused to rule out the possibility backfire if its approach to immigration argues that until the 1980s many cen- That means: “Fight inequality, make the creation of a six-member panel to papers. The legal case has focused on
of a future coalition. alienates its normal leftwing coalition tre-left parties viewed immigration sim- sure you don’t receive more people from investigate the allegations after its own how his children obtained the money to
For Ms Frederiksen, these closer rela- partners. ply as a source of cheap labour. elsewhere than you are able to deal with, inquiry proved inconclusive. pay for assets such as apartments on
tions form part of an attempt to answer However, Ms Frederiksen argues that “I think we will see a shift in the next handle globalisation.” The panel reported its findings to the London’s upmarket Park Lane.
a Europe-wide question: how can the she is not pro- or anti-immigration but three or four years in the Nordics to a She is loath to comment on whether court yesterday. The details were not The children have claimed the money
centre-left survive in a time of populist merely seeking to be realistic in a coun- more restrictive view,” he says. Denmark can be an example for the made public, but the governing Paki- came from Hamad bin Jassim bin Jaber
politicians? try with a big welfare state. However, a senior Swedish Social European centre-left but she is clear on stan Muslim League–Nawaz (PML-N) bin Mohammed bin Thani al-Thani, the
With electoral near-wipeouts in The 2015 migration crisis led to Democrat balks at any comparison with where things have gone wrong. party immediately criticised them. former prime minister of Qatar, as part
France and the Netherlands, there have tougher measures — including the their Danish counterparts. “Their “What I think is the most important “Some people are hiding behind con- of a business deal.
been few reasons for the centre-left to almost never-used jewellery law, which recent course is quite worrying,” he thing about being a Social Democrat stitutional institutions [like the The Sharif family has criticised the
cheer. In the Nordic countries that are allowed police to seize immigrants’ jew- says, referring to the joint interview party is actually being relevant. Are you Supreme Court] and working on a panel for not interviewing Sheikh
seen as a bastion for liberal social val- ellery to pay for their stay. with the DPP. The thought of co-operat- able to find the answers to the problems minus-Nawaz formula,” said Abid Sher Hamad, who they say can provide docu-
ues, for the first time since the second These measures were also backed by ing with the Sweden Democrats, a party that people are facing?” Ali, the water and power minister and a ments proving the claim.
4 ★ FINANCIAL TIMES Tuesday 11 July 2017



Abe’s popularity at lowest ebb after flood of scandals

Economic reforms thrown worst figures since Mr Abe returned to weak. And given his strong parliamen- per put Mr Abe’s approval rating at 33 icy may also have upset the public. The publicly about the LDP leadership.
office in 2012. The figures suggest that a tary majority, Mr Abe may be able to per cent, down from 38 per cent, with creation this summer of a new criminal Mr Abe’s second three-year term as
into question as support stream of scandals and unpopular laws, ride out a period of unpopularity. his disapproval rating up to 47 per cent. offence of conspiracy was poorly head of the LDP will run out in autumn
for PM hits five-year nadir combined with slow progress on the Mr Abe cut short a post-G20 tour of Last week’s elections to the Tokyo city received, and his pledge to revise Japan’s 2018. To fulfil his ambition of serving
economy, have tarnished the leader who European capitals to return early to assembly, in which the LDP was constitution by 2020 is regarded as a until the Tokyo Olympics in 2020, he
ROBIN HARDING — TOKYO has dominated Japanese politics for the Japan. He vowed to address public senti- defeated by Ms Koike, are the most low priority by many voters. needs to win that party election, as well
past five years. ment, saying: “We’ll carry out a cabinet recent blow to Mr Abe’s authority. Erosion in Mr Abe’s popularity has led as a general election that must be held
Shinzo Abe’s popularity has slipped to a The poor ratings raise the odds that reshuffle early next month.” A series of cronyism scandals, involv- to a resurgence of factional manoeu- by December 2018 at the latest.
record low, casting doubt over the dura- Mr Abe will pull back from economic Tobias Harris, a Japan analyst at ing alleged favours for certain private vring within the LDP. Shigeru Ishiba, a “I think it’s an increasingly open
bility of the Japanese prime minister’s stimulus in an attempt to regain popu- Teneo Intelligence in Washington, said: school operators close to Mr Abe, have former minister and leadership rival of question whether Abe will even be in a
administration and its economic larity, or that he will be pushed out by a “The Yomiuri poll suggests that the pub- also hurt. Some 72 per cent of respond- Mr Abe, used the Tokyo defeat to criti- position to run again in 2018, assuming
reforms. new leader of his Liberal Democratic lic’s trust in Abe, including LDP sup- ents to the Yomiuri poll said he needed cise the administration and demand a he survives that long, especially if
According to a poll for the Yomiuri party who will abandon it altogether. porters, is collapsing. The cabinet to explain himself in connection with a change of direction. Kishida continues to look and act like a
newspaper, only 36 per cent of the But apart from Tokyo’s governor, reshuffle scheduled for next month scandal about a new veterinary school Fumio Kishida, foreign minister, who prime minister in waiting,” said Mr
Japanese public supported the adminis- Yuriko Koike, who lacks a national already seems like too little, too late.” in a special economic zone. is widely seen as the most likely succes- Harris.
tration while 52 per cent opposed it, the political platform, Japan’s opposition is A separate poll in the Asahi newspa- Mr Abe’s focus on non-economic pol- sor to Mr Abe, has also begun to speak BoJ and bond yields see Markets

Africa. Opposition leader

Kenya veteran
looks to youth
vote for victory
projects implemented by his govern-
Odinga believes state of ment, including a $4bn Chinese-built
economy will propel him to railway from Nairobi to Mombasa that
opened May. But Kenyans will be cast-
presidency at fourth attempt ing their ballots just as one of Africa’s
best economic performers endures the
headwinds of a slowdown. Growth fell to
its slowest rate in five years in the first
Three election defeats would be enough three months of the year as it slipped to
to send most politicians into retirement. 4.7 per cent, down from 5.9 per cent in
But Raila Odinga, Kenya’s veteran oppo- the same period in 2016.
sition leader, is gearing up for his fourth The agriculture sector, in which more
bid for the presidency at elections next than two-thirds of Kenyans earn their
month, convinced that momentum is livings, contracted for the first time
shifting in his favour. since 2009. The government was forced
The 72-year-old, who contested his to import maize after the price of the
first presidential race 20 years ago, is nation’s staple almost doubled in the
predicting that mounting frustration first five months of the year. Milk and
over soaring food prices and rampant sugar prices have also risen sharply.
unemployment will finally propel him Mr Odinga said the economic pain
to the nation’s top job. people were enduring should favour the
“The country is angry now because of opposition. He believed the tradition of
the price of food, corruption and exclu- people voting along tribal lines was
sion,” Mr Odinga told the Financial slowly changing, particularly among
Times. “People feel excluded, they can’t younger, better informed Kenyans.
get a job. My phone is full all the time of First-time voters, who comprise more
than 20 per cent of the 19m electorate,
would play a decisive role, he added.
Raila Odinga: “This youth, who is on the internet, on
‘I myself will not
urge the people to social media, is not only communicating
violence at all. But with the youth in other parts of the
I cannot control country but other parts of the world,”
the people’s anger’ said Mr Odinga, who was detained three
times in the 1980s for alleged links to an
messages from the youth saying how attempted coup and then his role in pro-
they are, their plight, how they’re una-
ble to eat. ‘Can you please save us from
this situation,’ they say.”
democracy campaigns. “The youth are
no longer so ethnically inclined.”
However, there are lingering fears
Take-off Asmara, the capital of Eritrea — a
country perhaps more often
associated with repression and an
futurists who were able to play out
their architectural fantasies in the
Italian colony in the Horn of Africa.
art deco bowling alley with stained-
glass windows, and the Cinema
Impero replete with Roman pillars
Mr Odinga is leading the opposition
coalition, the National Super Alliance,
that a tight contest could trigger politi-
cally motivated violence. After the dis-
Eritrea capital exodus of refugees to Europe — has
acquired a more positive image by
Among the 400 buildings that have
survived the decades, as well as a
topped with stone lion heads and
paintings of antelopes, pineapples
that is seeking to unseat President
Uhuru Kenyatta, the scion of the coun-
try’s founding leader.
puted 2007 election, when Mr Odinga
came second, about 1,200 people were
killed and 600,000 displaced as clashes
made World becoming the world’s first modernist
city to be designated in its entirety as
a Unesco World Heritage site.
protracted war of liberation against
Ethiopia, is a petrol station,
completed in 1937. Shaped like an
and dancing girls.
Partly because Eritrea’s economy
has fallen behind, Asmara has been
In an election short on policy debates,
the main concerns for many are infla-
spread across the country.
When the violence ended, Mr Odinga
Heritage site Known as “La Piccola Roma”, or
Little Rome, the Eritrean city of
aeroplane with seemingly gossamer-
thin outstretched wings, it looks more
spared the brutal lunge to
development that has scarred so
tion running at 9.2 per cent, a slowing became prime minister in a unity gov- 800,000 people became an artistic like a bird in flight than a building many other African cities with their
economy and state corruption as the ernment that introduced a constitution playground in the 1930s for Italian rendered in concrete. There is also an cacophony, pollution and shopping
country grapples with one of its worst designed to strengthen state institutions malls. Old men at pavement cafés sip
droughts in years. The latest opinion and devolve power in the hope of reduc- espressos made by vintage Italian
polls suggest Mr Odinga is trailing Mr ing the risk of future unrest. But this machines and, if critics of the regime
Kenyatta by about 5 percentage points. year, party primaries were marred by are to be believed, occasionally spy on
But he is confident the gap will be closed violence, and land invasions in the Rift their neighbours. Unesco called
before polling day on August 8. Valley have left scores of people dead. Asmara “an exceptional example of
“I think we’re in the right place Mr Odinga, who became an MP in early modernist urbanism”. Eritreans
because the latest polls were taken 1992 and made his first bid for the presi- call it “The City of Dreams”.
before we launched our manifesto last dency five years later, said he had “mis- Along with Asmara, the Khomani
week,” Mr Odinga said. “And the econ- givings” about the ability of the electoral Flight of fancy: the Tagliero ancestral lands in South Africa and
omy is weakening.” His election pledges commission and the judiciary to deliver petrol station, built in 1937, in M’banza Kongo, a city founded by the
include boosting agriculture, devolving a free election. Asmara, with wings that mimic Portuguese in Angola in the 15th
more state revenues to local govern- Concerns about widespread violence a plane. Right, the Cinema century, also become World Heritage
ments and fighting corruption. were “over-hyped”. But he would not be Impero in the city, which sites. There are now 48 sites
Mr Kenyatta is campaigning on the able to control supporters if they felt the boasts paintings of antelopes, protected by Unesco in Africa, out of
strong economic growth the country has election was rigged. “I myself will not pineapples and dancing girls 814 cultural sites worldwide.
enjoyed during his term and the deliv- urge the people to violence at all. But I Eric Lafforgue/Gamma-Rapho/Getty Images David Pilling
ery of multibillion-dollar infrastructure cannot control the people’s anger.”


End of Isis nears but opponents fear jihadis are already preparing their reincarnation
ERIKA SOLOMON — BEIRUT Today, Iraqi forces backed by a US-led Others within Iraq and Syria’s large ince of Deir Ezzor, specifically the town have nowhere to run and will find no Centre for the Study of Radicalisation
coalition have recaptured all but 6 per Sunni Muslim population may even of Mayadeen, and into desert towns quarter in surrender. and Political Violence in London.
Jihadi forces face their final hours in
cent of the territory they lost. Haider al- retain sympathy for Isis, which portrays along the Syria-Iraq border. Even for less strategically important “They couldn’t abandon Mosul, they
Mosul, as Iraqi troops attack their last
Abadi, Iraq’s prime minister, on Sunday itself as their defender in a region of ris- Isis has prolonged the fight, suffering towns, the battles drag on — recapturing had to look like they put up an apocalyp-
stronghold, while in neighbouring
declared a “great victory” over Isis in ing sectarian strife between Sunnis and material losses for symbolic gains. Mosul took nearly nine months — often tic fight . . . ideologically this plays into
Syria, their de facto capital of Raqqa
Mosul. But the struggle is far from over. Shia. Millions of Sunnis, angered by Recent defectors described a strategy in distorting the optics of what is happen- its hands.”
has been surrounded. The “state” the
“I expect an end to the battle by mid- increasingly deadly coalition strikes, which the group allots fighters to hold ing. Isis’s media wing duly announced on
so-called Islamic State claims to govern
dle or end-2018,” said Hisham al- remain scattered and displaced by war, on until the end, nearly all of whom are “This fight in Mosul is not like any- Sunday that militants trapped inside
looks ever closer to its end.
Hashemi, an Iraqi insurgency analyst. and a target for radicalisation. locals. The reasoning is simple: they thing modern militaries have done. You Mosul had agreed a death pact.
But in the fight against a militant organi- “Then, this will go from a military battle In Syria, opposition figures worry that have to go back to the second world war Meanwhile more revenge attacks in
sation that has reincarnated itself to a societal war.” Isis members are fleeing toward the to find anything close,” Robert Sofge, a Europe look inevitable. “I expect a big
before, the biggest challenge may not be Isis opponents worry the militants Sham Liberation Front, a former al- US brigadier-general working with the attack in the not so distant future, on
defeating Isis, but preventing it from ris- have laid the ground to reinvigorate its Qaeda affiliate dominating the moun- coalition in Iraq, told AFP news agency. Europe,” Mr Hashemi said.
ing again. insurgency. tainous north-western province of Idlib. He meant it as a tribute to Iraq’s hard- In Iraq, those who fled Isis seem
In 2006, US forces aligned with Iraqi Past experience with brutal revenge They speculate some Isis fighters could won victory. But to potential sympathis- unwilling to believe the saga is over. On a
tribesmen routed an al-Qaeda offshoot killings mean some residents fear resist- try to stage a hostile takeover or join ers, it looks like an outgunned jihadi recent FT trip to Mosul, one Iraqi com-
known as Islamic State of Iraq. Eight ing surviving militants. Many Isis mem- forces with a group it once fought force mounting an impressive resist- mander tried to convince a family in a
years later, the jihadis exploited the bers are believed to have blended in against. The rugged terrain would make ance against a campaign backed by recaptured area to tell their story. They
chaos of Syria’s civil war to regroup as with fleeing civilians, and their goal now this harder to recapture, even with US world superpowers. refused.
Islamic State of Iraq and Sham, or Isis, will be to destabilise recaptured areas. air support. “Much of what we have seen in the last “Stop being frightened. Isis is gone
and stunned the world with the capture Isis has increased the number of road- Isis has prepared for today’s territo- few months has been about defining the now,” he said, smiling. “You’re wrong,”
of Mosul and blitz across northern Iraq side bombs around Mosul and suicide rial losses for nearly a year, moving top Iraqi forces celebrate the ‘liberation’ right narrative,” said Charlie Winter, a the father replied. “They’re never gone.”
and eastern Syria. bomb attacks on towns south of the city. cadres to Syria’s oil-rich eastern prov- of Mosul over the weekend senior researcher at the International Editorial Comment page 8
Tuesday 11 July 2017 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 11 July 2017


U2 dig deep to revive Joshua Tree

things, fantastically simple
POP patterns woven into the most
beautiful silk.
Tom Petty and the Nicks appeared onstage
Heartbreakers/ with Petty in a superstar duet
Stevie Nicks that both participants
Hyde Park, London appeared thoroughly to
POP enjoy, for “Stop Draggin’ My
Heart Around”. Petty is, in
U2 Michael Hann the memorable phrase of the
Twickenham Stadium, London DJ Mark Radcliffe, one of
aaaae The older audience got their American rock’s great light-
day in the sun, literally, at the weights, which isn’t pejora-
Ludovic Hunter-Tilney final night of the annual Bar- tive: he doesn’t come with the
claycard British Summer ballast of Neil Young, or his
The Joshua tree in the Californian desert Time festival, the outdoor Traveling Wilburys band-
that was photographed for the artwork event for those who want to mate Bob Dylan, but the best
of U2’s The Joshua Tree album was a sleep in their own beds. The of his songs are impeccable,
famous piece of vegetation, a superstar pairing of Stevie Nicks, seem- and it was striking how much
among flora. But the attention must ingly in one of her periods of of his set was delightfully
have gone to its spiny head: it died in estrangement from the rest familiar from floating
2000 aged about 200, a premature end of Fleetwood Mac, and Tom around the edge of the pop
considering the 500-year lifespan it Petty — playing his only consciousness.
might have hoped for. Rock and roll can European show of the year — “I Won’t Back Down” was a
do that to plants. attracted a crowd well reminder of American MOR’s
U2, however, march on. Bono can no equipped with picnic blan- 1980s heyday, when old rock
longer play guitar after a severe bicycle kets and unwilling to pack craftsmanship met big pop,
injury in 2014 but he was in fine voice at them up as showtime and kicked off a stellar mid-
Twickenham Stadium, barrelling his approached. set run that featured a genu-
way through songs with stentorian pres- Nicks’s voice is not what it inely moving “Free Falling”
ence. The Edge’s guitar-playing was once was, but the lack of (better known to non-fans as
acute, Adam Clayton’s basslines were Christine McVie and Lindsey “That One Tom Cruise Sings
beefy and Larry Mullen Jr gave his drum Buckingham meant its short- Along To In Jerry Maguire”),
kit a good hiding. “U2 group is still here!” comings — it is now woody “Walls” and “Don’t Come
Bono cried out. Next year they will cele- and hard, where once it was Around Here No More”.
brate their 40th anniversary, outstand- soft and airy — were not high- It wasn’t flawless: “It’s
ing longevity for a rock band with an Positivity: U2 on stage at Twickenham Stadium — Brian Rasic/WireImage/Getty Image lighted as they can be at a Good To Be King” should
unchanged line-up. Fleetwood Mac gig. And her have been subtitled “But It’s
The show, the first of two at the sta- and to activate the big screen with lines riffs washed against remorseless tick- The Joshua Tree’s re-staging would songs justify attention: being Bad To Have 174 Long Guitar
dium, marked a different anniversary. from Martin Luther King’s “I have a tock rhythms from Mullen Jr and Clay- have benefited from a surer grasp of the original princess of the Solos”. He finished, of
The Joshua Tree was released 30 years dream” speech. ton. “Exit” was introduced by an opaque history, such as by talking about the goths, all black shawls and course, with “American Girl”,
ago, a global hit that sold over 25m cop- They retreated to the main stage for anti-Donald Trump film, the spur for songs in greater depth or using the mysticism, means her and if one was glad the show
ies and established the Irishmen as one The Joshua Tree’s first song, “Where the savage guitar-playing and intense screen to contrast archive footage from strengths as a melody writer ignored that song’s promise
of the world’s biggest bands. The original Streets Have No Name”. Bono sang the vocals, the highlight of the set. 1987 with the present day. The unwill- do not get their due. The to “make it last all night”, it
Joshua Tree tour in 1987 was a fraught gospel-influenced anthem with head That was the only moment when the ingness to do so meant the atmosphere Mac songs she played — was a pretty wonderful way
experience (“We were the biggest, but inclined upwards, searching for the album’s fascination for America was occasionally sagged. “Dreams”, “Gypsy” and to spend a couple of hours on
we weren’t the best,” Mullen Jr later sunny uplands beyond Twickenham, allowed to intersect with the troubled A closing sequence of post-Joshua Tree “Rhiannon” among them — a hot summer evening.
said). Now they have chosen to restage one leg bent behind him as though about state of the nation 30 years later. Other- hits cycled through various issues — and her solo material, includ-
the album with decades of stadium to take a purposeful stride towards that wise Bono preferred to cater to local Syrian refugees, the murdered MP Jo ing the sublime “Edge of Sev-
showmanship under their belts. promised land. The screen now showed tastes by trafficking in platitudes about Cox, foreign aid (“You are the world’s enteen”, are wondrous
They opened with four key songs from an endless desert road filmed by Anton London’s diversity (“300 languages!”) envy, Great Britain”) — in a diffuse
their pre-Joshua Tree days, played on a Corbijn, the photographer responsible and“greatGreatBritain”offering“safety fashion. But the debuting of a decent Silk:
thrust stage: “Sunday Bloody Sunday”, for The Joshua Tree’s original artwork. and sanctuary for all these years” to new song, “The Little Things That Give Stevie
“New Year’s Day”, “Bad” and “Pride (In The song was followed by two other Irish immigrants, a bizarrely rose-tinted You Away”, showed that U2’s tank has Nicks
the Name of Love)”. A 200ft-wide LED heavyweight numbers, “I Still Haven’t view of Anglo-Irish relations. not yet run empty, while the finale, in on stage
screen was erected behind them, incor- Found What I’m Looking For” and The singer believes in using flattery to which support act Noel Gallagher joined in Hyde
porating a silhouette of the Joshua tree “With or Without You”, both received achieve his ends; the result is historical the band to perform the Oasis singalong Park
image. But the screen remained other- ecstatically. “Red Hill Mining Town”, revisionism. “Oil is the reason for the “Don’t Look Back in Anger”, repre- Samir Hussein/
wise blank, forcing attention on to the never played live until the current tour, wars we wage,” he sang during “New sented a generous act of stage-sharing. Redferns/
Getty Images
four small figures grouped together was given a brawny rendition with pre- Year’s Day”, a pointed alteration from Relentless positivity has its uses:
making an outsize noise, a back-to- recorded horn accompaniments. “One the original song’s “gold”. But he must without it, U2 would have gone the way
basics approach — albeit with sufficient Tree Hill” was dedicated to the crew have forgotten his confident statement of the real Joshua tree.
grandstanding to interpolate David member, Greg Carroll, whose death in from 2003, after the invasion of Iraq:
Bowie’s “Heroes” into one of the songs 1986 inspired the song; the Edge’s fluid “Tony Blair is not going to war for oil.”

From classroom to correctional facility

The potential jailbird here is Omari father Xavier (Morocco Omari) also
T H E AT R E (Namir Smallwood), who has pushed become wearingly strident.
his teacher at an exclusive boarding Pittman makes better work of her
Pipeline school during an argument about Rich- monologues, particularly one framed
Lincoln Center Theater, New York ard Wright’s Native Son. Since that novel around a lesson about Gwendolyn
aaeee is about an African-American criminal Brooks’s poem “We Real Cool”, a bril-
who goes on trial for his life, this seems liantly laconic meditation on Pipeline’s
Max McGuinness like a rather heavy-handed piece of central themes of educational failure
symbolism. Smallwood, an actor in his and delinquency. But, as with Moris-
Early in Dominique Morisseau’s new thirties, also struggles to play a convinc- seau’s allusions to The Wire and Native
play about racial tensions in American ing teenager. Karen Pittman is more Son, the weaknesses of her own play
schools, Laurie (Tasha Lawrence), a plausible as his mother Nya, a teacher here become all the more glaring in
veteran teacher recovering from an torn between her own violence-plagued comparison. The best students tend to
assault by members of a student’s fam- inner-city high school and her son’s edu- learn from their masters, then leave
ily, complains that her substitute has cational needs. But their hectoring them behind.
done nothing in class except screen the exchanges tend to sound scripted.
whole of season four of The Wire, which Omari’s interactions with his estranged To August 27,
is a bit like showing One Flew Over the
Cuckoo’s Nest inside a mental asylum. Heavy-
With that allusion, Morisseau sets handed:
herself a very high bar. Like David Heather
Simon’s television series, Pipeline por- Velazquez
trays a group of dedicated educators and Namir
who seem powerless to help their Smallwood
charges in the face of crippling social in ‘Pipeline’
problems. But whereas The Wire exam- Jeremy Daniel
ined those problems in precise natural-
istic detail, Morisseau and director Lile-
ana Blain-Cruz opt for an overheated,
melodramatic approach that repeatedly
lapses into cliché. A woman even faints
on stage here. And notwithstanding its
title, the play has surprisingly little to
say about the so-called school-to-prison
pipeline blamed on increasingly draco-
nian disciplinary policies.

might count as youthful, but catching scenes like “Die Advokaten”, composed
C L A S S I CA L M U S I C rarities like these reminds us that every when he was 13 and sounding like a lost
note is worth hearing. number from Mozart’s Die Zauberflöte. A
Schubert songs day The afternoon recital was mostly bright-eyed male vocal quartet — Daniel
Wigmore Hall, London made up of partsongs. Imagine the scene Norman, Nicky Spence, Benjamin Appl
aaaee at a musical gathering in Vienna in the and Stephan Loges — brought these
early 1820s. A popular feature will be innocent trifles to life. Sholto Kynoch
Richard Fairman small ensembles of three or four singers. was the accompanist.
Schubert wrote pieces for groups like In the evening Ian Bostridge’s recital
Setting a target of performing all of this throughout his life, ranging from ranged across lesser-known areas of
Schubert’s over 600 songs is quite a drinking choruses to miniature operatic Schubert’s solo songs. A first half focus-
challenge. Only the prospect of tackling ing on the teenage years was remarka-
Bach’s 200-plus cantatas is comparable, ble. Who knew the attractive “Der
though that has also been done, notably Geistertanz”, written when he was 17, or
by John Eliot Gardiner’s Monteverdi “Stimme der Liebe”, with its remarkably
Choir to mark the millennium. wayward harmonies? A second half with
Stretching over two seasons, Wigmore four Hymns to poems by Novalis at its
Hall’s complete cycle of Schubert songs centre was hardly less eye-opening. It
is a joint project with the Schubertiade would have helped if Bostridge had put
Schwarzenberg and Hohenems Festival. less effort into emoting and more into
Completion date is early next year on making the German words comprehen-
January 31, Schubert’s birthday, so there sible, but there was no missing the musi-
is not much left to go now. cal richness of these mostly neglected
On Sunday, two recitals mopped up gems. With Graham Johnson on inspir-
some of the least familiar material. ing form at the piano, every song
When all his music was composed seemed to venture into pastures new.
between his teenage years and his death
at the age of 31, every song by Schubert Musical richness: Ian Bostridge
Tuesday 11 July 2017 ★ FINANCIAL TIMES 7


As the Republican plan to replace Obamacare enters a crucial week, the health system faces disruption. If
the bill passes, millions could lose coverage. If it fails, uncertainty will undermine the existing set-up.
By Edward Luce

On life support
his is the week Republicans

FT montage / Getty
have craved for more than
seven years — their chance
to repeal Obamacare. Some
time in the next few days
the US Senate will either scrap most of
Barack Obama’s signature achievement Summer deadline Senate Republican
— the 2010 Affordable Care Act. Or they leaders hope to approve healthcare
will abandon the effort for failure to find reform before the summer recess
the votes. Either way, America is at a
fraught crossroads in its never-ending Sticker shock Moderate Republicans
healthcare saga. worry that the bill could cause millions
If the Senate bill passes, up to 22m to lose healthcare coverage
Americans could lose their insurance.
Many more will experience a sharp Free markets Some conservative
reduction in healthcare support. If the senators believe the plan does not do
vote fails, Obamacare will survive but enough to scrap Obamacare
very much as a zombie law — a stay of
execution, rather than a pardon. The
battle will continue. Neither outcome concession Mr McConnell makes to
would be for keeps. Republican moderates would thus jeop-
“Whatever happens, we are entering a ardise support from the right. Mr McCo-
period of deep uncertainty that will nnell’s near-Cromwellian ability to mar-
cause entirely avoidable damage to the shal troop discipline might fail to work
US healthcare system,” says Douglas this time.
Elmendorf, dean of the Kennedy School “For every vote you gain, you lose
of Government at Harvard — and another,” says Mr Pethokoukis. That
former head of the Congressional said, no Republican would wish to cast
Budget Office. “This is a textbook exam- the one vote that could kill the bill.
ple of how not to make legislation.” “Nobody would choose to be exposed to
How did Donald Trump’s Republi- the rage of the Trumpian base by being
cans reach this point? In spite of its the Republican who saved Obamacare,”
name, the Better Care Reconciliation says Mr Ornstein. “You would prefer it
Act is deeply unpopular. Just 12 per cent to fail by six votes or not at all. There is
of Americans back it. Even Mr Trump, only safety in numbers.”
who last month described the House of
Representatives’ version of the bill as Universal healthcare
“mean”, does not want it named after What, then, is likely to happen? If the
him. Given that he has devoted most of bill fails, Obamacare will be given a
his life to putting his brand name on reprieve. But it will be stuck in intensive
things, that says something. care. Insurers are likely to continue to
Yet Mr Trump, and Republican con- exit the market because of concerns
that the Trump administration would
‘Whatever happens, we are not pay them the subsidies that keeps
the system functioning. Younger policy-
entering a period of deep holders are likely to bail out of the sys-
tem on the expectation that Mr Trump
uncertainty that will cause will not enforce the individual mandate.
entirely avoidable damage “There would be a period of chaos until
we knew what, if anything, was going to
to the healthcare system’ replace the ACA,” says Mr Elmendorf.
If the bill passes, however, the US
gressional leaders, insist on moving to have health insurance. Without that, repayment for the tax cut. Republican Battle lines: healthcare system is likely to be plunged
ahead anyway. Partly this is to appease a Political November 1945 — The opening shot insurance premiums would rise, since lawmakers will be banking on this to Having made into disarray. Millions of Americans
party base that has spent the past seven battles President Harry Truman pitched to the market would be subjected to shield them from the backlash.” the repeal of would lose coverage. Hospitals would
years demonising a law named after Mr Congress a universal healthcare bill as “adverse selection”, whereby the young Even then, it is unclear whether Mr Obamacare a still be required to treat them when they
Obama. From the day it passed, Repub- The part of the Fair Deal but the proposal and healthy would forgo insurance. Risk McConnell can muster the necessary 50 key election turn up in the emergency room. Those
licans described Obamacare as a “jobs painful failed after meeting strong opposition, pools would increasingly be dominated votes to pass the bill (on a 50-50 tie, the pledge Donald costs would be passed on in steeper hos-
killing” dagger aimed at the US econ- history of including from the American Medical by older and sicker Americans, which deciding vote would be cast by vice- Trump is pital charges for everyone else, higher
omy. Passions ran so high that Ben Car- healthcare Association, the physicians’ lobby. would drive up premiums. That in turn president Mike Pence). Mr McConnell struggling to insurance premiums and backdoor tax-
son, Mr Trump’s secretary of housing, reform in July 1965 — Medicare introduced would prompt more policyholders to tried and failed to do so before the July 4 find a payer bailouts. The need for healthcare
and the most prominent African-Amer- the US The Medicare law, implemented under drop out. And so on in a vicious spiral. recess for fear that Republican senators replacement reform would only increase.
ican in his administration, compared President Lyndon B Johnson, below In addition, the bill would weaken would be hit by a barrage of voter criti- scheme to cover Indeed, many thoughtful conserva-
Mr Obama’s law to slavery. left, gave people over 65 hospital and some of the most popular elements of cism when they went home for the inde- millions of tives fear Trumpcare’s passage would
Now that Republicans control both medical insurance regardless of their Obamacare, notably the stricture that pendence day holiday. families — Getty only strengthen support for a single
Congress and the White House, they income. A second programme, insurance companies offer policies to Given the strength of feeling against payer healthcare system similar to Can-
have little choice but to redeem their Medicaid, offered subsidised people with “pre-existing conditions” — the bill, most Republicans sensibly can- ada or the UK. Universal public health-
vow. Yet they also know the potentially healthcare to some low income those with permanent ailments such as care is backed by some populist Demo-
dire consequences. “How can you not
repeal something that you have
October 1972 — Nixon’s try
diabetes. It would also allow insurance
companies to reinstate annual and life-
‘You could see this as a crats, such as former presidential hope-
ful Bernie Sanders. “The problem is that
described as a wet blanket on the whole The Nixon White House time spending caps that could bankrupt kamikaze bill because it will Republicans have been promising uni-
economy?” says James Pethokoukis, a expanded the eligibility of people who need treatment the most. versal coverage at lower taxpayer costs
senior economist at the conservative Medicare to allow those under deprive so many Americans and with lower insurance premiums,”
The political backlash
American Enterprise Institute. “Repub- 65 with certain conditions and of healthcare. But think of it says Mr Pethokoukis. “They are trying
licans have backed themselves into an those of all ages with permanent But the most devastating element for to sell a bill of goods. You cannot prom-
impossible position. They cannot act yet kidney diseases to receive hospital poorer Americans is the $772bn cut in as a disguised tax cut’ ise something for nothing.”
they cannot not act.” and medical insurance. spending on Medicaid, which provides The great irony is that Obamacare
1993 — Hillarycare flounders health coverage to those who cannot celled their customary town hall meet- had been achieving many of the goals
Repeal and replace The initiative to provide healthcare to afford insurance. Medicaid covers most ings with voters last week. But they did conservatives had always wanted. Much
The dilemma is that Republican law- all Americans, headed by Hillary of the 20m or so Americans who were so in awareness of which way most pas- to the annoyance of the Democratic left,
makers can only agree on the first half of Clinton, the then first lady, was brought in from the cold by Obamacare. sions are running. Already two Republi- Mr Obama bent over backwards to win
their vow to “repeal and replace” defeated in 1994 when even a Some diehard conservatives have can senators, Susan Collins of Maine, Republican support for the bill in 2009.
Obamacare. The difficulty with the compromise bill failed to pass baulked at the political fallout the Med- and Dean Heller of Nevada, have said He even dropped a clause that would
“replace” portion is that there are no Congress. The defeat weakened the icaid cuts could bring — as have big they cannot vote for the bill, because of have provided a “public option” on the
viable conservative healthcare options Clinton White House and names, such as John Kasich, governor of the Medicaid cuts. That would take it private insurance markets. Conserva-
available. Obamacare itself was a con- strengthened Republican Ohio, and a 2016 rival to Mr Trump for down to a tiebreaker, given that there tives feared the “public option” would
servative reform. Its key tenets were opposition. the Republican nomination. are 52 Republican senators. lead inexorably to a US embrace of
based on a plan drawn up in the 1990s 2003 — Saving with Bush Yet the spending cuts are essential to But Mr McConnell’s task of buying off socialised medicine.
by the conservative Heritage Founda- President George W Bush pay for the tax cut embedded in the bill, the waverers — a skill he has perfected In fact, before Mr Trump’s election,
tion as an alternative to the more diri- introduced health saving which would scrap a 3.8 per cent charge over the years — is unusually hard the system was working roughly as it
giste “Hillarycare” — the failed reform accounts in 2003 to try to on investment income. “You could see because a number of conservative was meant to. US healthcare inflation
effort championed by Hillary Clinton, combat rising costs. They this as a kamikaze bill because it will senators, including Ted Cruz of has been falling and public spending on
then first lady. The Heritage Plan then offered a tax-free incentive to save deprive so many Americans, including Texas, Mike Lee of Utah, and healthcare has been contained. Moreo-
became “Romneycare”, which was for healthcare but critics claimed that Republican voters, of health coverage,” Rand Paul of Kentucky, ver, Obamacare’s much-advertised
enacted in 2006 by Mitt Romney, the the tax breaks were not enough to says Norm Ornstein, a veteran Con- complain the bill unpopularity now looks rather different
then Massachusetts governor. help benefit low-income households. gress-watcher. “But if you think of it as a does not go far in hindsight. Even at its low point, sup-
Obamacare is based on the same prin- 2010 — The Affordable Care Act disguised tax cut then your perspective enough in port for the law never fell below 40 per
ciple that individuals buy healthcare Dubbed Obamacare, the ACA changes. The big conservative super- scrapping cent. Today, clear majorities of Ameri-
policies from private insurance compa- promised to reduce healthcare costs pacs [election funding groups] will Obamac cans support keeping it.
nies on market-based exchanges. It and increase insurance coverage unleash a lot of campaign money in are. Any Whatever happens in the Senate, the
would be hard to come up with some- across the US. The law required longer-term winners are likely to be
thing more free market than that. “The insurers to accept anyone who those making the case for single payer
problem with repealing the ACA is that applied for the scheme but was Life expectancy in the US has not risen The Republican plan would leave another healthcare. Already more than half of
there is nothing more conservative to met with a Republican in line with healthcare spending 22m Americans without health insurance Americans use such a system, mostly
replace it with,” says Peter Orszag, who backlash. Its repeal was a Each line represents an OECD country Number of uninsured adults under 65 (m) through Medicare. Extending that to all
was Mr Obama’s first budget director — major Trump campaign 85 Japan Previous GOP plan Americans no longer seems so far-
now head of global healthcare at Lazard, 2014 fetched. “I doubt it would happen
pledge. 50
the investment bank. “So what we get is 80 UK explicitly,” says Mr Ornstein. “But by
Life expectancy (years)

2017 — Republican plans

2014 Updated GOP plan
this almost irrational situation where Under proposals before the US expanding Medicare to lower age
Republicans are abolishing something Senate, which Republican leaders 75 2014 groups, a single payer system will proba-
they always wanted.” hope to push through this week, most bly grow piecemeal and by stealth.”
70 Start
The result is a mishmash of a bill that of Obamacare would be gutted. It A Canada-style healthcare system for
satisfies nobody. Under the Senate ver- would scrap the so-called individual 1970 Americans? That is surely not what Mr
sion, which Mitch McConnell, the Sen- mandate that obliges every American 30 McConnell intends. Yet even the best
Before Under ACA
ate majority leader, hopes to push to have health insurance. Critics warn 60 Affordable (current law) crafted legislation has unintended con-
through this week, most of Obamacare that millions of Americans would be Care Act Projections sequences. Nobody, including conserva-
would be gutted. It would scrap the so- stripped of healthcare cover if it 55 20 tives themselves, would pretend
0 2,000 4,000 6,000 8,000
called individual mandate that obliges becomes law. Health spending per capita (US$ 2010 PPP constant) 2005 2010 2015 2020 2025 Trumpcare is being drafted with much
Sources: OECD; UNPD; Congressional Budget Office
every American — on pain of penalty — heed to its consequences.
8 ★ FINANCIAL TIMES Tuesday 11 July 2017

Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address

What every Uzbek knows about forced labour West should be far more
worried about Turkey
Sir, Further to your report “Opposition
Sir, Your report “World Bank accused the country and my continuing reflects both these constraints. Without party marches against Erdogan’s
over child labour in Uzbekistan” (June contacts there. Virtually every Uzbek a team to call on, in 2016 the ILO authoritarian rule” (July 10): it would
27) on Uzbekistan’s cotton sector knew, and knows, that the regime recruited a tiny group of international be nice if we could find hope in the
presents a clash of views on forced harvests cotton with forced labour, observers, just seven people. In a jaw- protests led by Turkey’s Republican
labour in the country. Two noted including teachers, nurses, students, dropping violation of its independence, People’s Party (CHP), but we have to be
human rights organisations contend civil servants, school children, and the ILO allowed this group to be careful about how we interpret the
that forced labour was pervasive in the others. This entrenched system makes accompanied by the government- protesters’ calls for “rights, law,
TUESDAY 11 JULY 2017 2015-16 cotton harvests, including in it virtually impossible for World Bank controlled trade union. Under these justice”. Unfortunately, there is almost
World Bank project areas. The bank areas to be insulated from forced conditions, the ILO’s failure to detect no support among any of Turkey’s
counters that the International Labour labour’s taint. forced labour in World Bank project political parties or supporters for a
Organization, which monitored its How, then, do we explain the ILO’s areas is hardly surprising. What could tolerant, pluralist understanding of
projects, found no such evidence. How failure to detect what human rights one expect from a handful of monitors their own society. Obviously, Turkey,

The Isis threat shifts as can Financial Times readers sort out
these claims?
As a former ILO director of the
advocates have documented? Two
factors are important. First, the ILO is
a standard-setting organisation that
accompanied by minders in a vast and
difficult-to-assess terrain?
So why did the World Bank
like any other country, embodies a
great deal of ethnic, religious, and
political diversity, but there is an

jihadis lose turf in Iraq region that includes Uzbekistan, I place

high confidence in the human rights
organisations. Each year, both then and
provides valuable technical assistance,
but its officials have neither the
mandate nor the expertise to police
commission the ILO to report on the
state of forced labour in Uzbekistan?
We must conclude that it did so
immense amount of intolerance for
these differences among all of the
political factions.
now, Uzbek human rights advocates governments’ compliance with its because it knew precisely what sort of Turkey’s democracy, such as it is, has
Mosul’s fall brings new dangers for the nation and its coalition backers provide the world with on-site standards. Second, the Uzbek report it would get. always operated along crude
interviews and government documents government denies its labour abuses Elaine Fultz majoritarian lines. Whoever wins the
It is nine months since the battle for recapture. Instead of creating govern- revealing massive mobilisation of and attempts to conceal them from the Philadelphia, PA, US majority in the parliament, or now the
Mosul was launched. By Sunday, ance structures based on local power forced labour. Their findings international community. Former Director, ILO Regional Office for all-powerful presidency, may pretty
US-backed forces had made enough and self-policing, sectarian conflict has correspond with my own experience in The ILO’s approach to monitoring Eastern Europe and Central Asia much do whatever they please.
progress in crushing resistance from broken out over heaps of rubble. There Supporters of the ruling AKP know this
fighters of the Islamic state that Haider is no hope of establishing long-term full well because they were on the
al-Abadi, Iraq’s prime minister, was peace in Iraq if this remains the case. African women’s right to grows up that is familiar with it.” receiving end of CHP oppression for
able to visit the city and proclaim vic- Isis was born out of the ethno-sectar- In the same way, it usually takes a decades, as reflected by the quote from
tory from its ruins. Isis is surrounded ian chaos that ensued after the 2003 control over their bodies new political generation to change the Hamza Araz at the end of your report:
too in Raqqa, its de facto capital in US-led invasion of Iraq. It has been sus- Sir, I write regarding the article tone of politics, let alone the basic ideas “They don’t support the rights of
Syria. Defeat there is only a matter of tained by Sunni minority resistance to “Failure to address Africa’s rising underlying it. New leaders grow up conservative people.” He is absolutely
time and lives sacrificed. a Shia supremacist agenda in Baghdad. population is not an option” (FT taking different things for granted than right. He, in turn, does not support any
The physical caliphate is crumbling. No doubt an equally virulent form of Health G20 Special Report, July 7). their predecessors did, and cultivate rights for them. Rights belong to me,
No one, however, should underesti- jihadi extremism will re-emerge Authors John May and Hans Groth different constituencies to support not to you.
mate the dangers that still lie ahead. should conditions stay the same. make the important point that tackling them. When suddenly the old Turkish scholars of Turkish society
Mosul has been under Isis occupa- While Mr al-Abadi is a more consen- demographic dynamics is not just a generation has lived out its political point toward a rising tide of
tion since June 2014 when a few hun- sual figure than his predecessors, he matter of improving education and life, this shift to the new cohort can conservatism, majoritarianism and
dred fighters forced thousands of Iraqi remains weak in the face of vested economic growth, but must also bring sharp and sudden changes in the intolerance. One can certainly point to
troops into a humiliating rout. It was interests. As well as Baghdad, the Irani- consider women’s rights. way things are done. Of course the different “liberal” and “western”
from the city’s ancient al-Nuri mosque ans, Turks and Kurds, are all vying to Key to this is the link between fresh young leaders of today, as Mr trends in policies, pronouncements and
that Isis leader Abu Bakr al-Baghdadi, step into the vacuum left as Isis fighters domestic violence and fertility. Barber notes, must keep in mind that some public commentary, but all of
trumpeted his global ambitions. are driven out and US influence wanes. Currently, one in three women their political careers will also end in these are regularly undermined in
The effect was to unite a combustible Squeezed in the middle are minority experiences physical or sexual violence failure, as they become the stale old actual practice. Police return beaten
mix of Iraqi factions and foreign back- Christians and Yazidis, among others in her lifetime. In a relationship, this faces of yesterday to be replaced in wives to their husbands, in violation of
ers in an alliance to reclaim territory who suffered terribly at the hands of can mean intimate partners deny their turn by something new. the law but in accordance with cultural
lost. Kurds, Turkish-backed Sunni the jihadi state. women and girls access to ‘Putin is carrying on our joint cyber The difference is that science, at least custom; judges openly state that their
fighters, Iranian-armed Shia militias Iraq’s factions are so polarised that contraception and safe abortions, security programme without us’ in theory, builds upon itself to better job is not to enforce the law, but rather
and Bagdad government forces have there is little immediate prospect of an forcing them to have multiple and truer truths; whereas in politics, to “serve the state”; as part of pro-EU
fought a gruelling metre-by-metre effective power-sharing government at pregnancies. alas, progress is circular; and the same educational reforms teachers are told
battle with US backing, at a cost of the centre. This should not preclude If global attempts to achieve “a “nationalising” or “repolonising” ideas tend to come around again every they can select their own textbooks
thousands of lives. They were driven by confidence-building measures at local contraceptive revolution” at today’s foreign-owned banks. However, if there few political generations. and should place students at the centre
a common military goal. and regional level, such as the creation London Family Planning Summit are to is a threat to the stability of the David AMcM Wilson of the educational process, only to have
Unfortunately, no such common of self-governing cantons that are capa- be successful, it is critical that we banking sector and the government Jesus College, Cambridge, UK the state provide only one textbook
political objective exists to glue these ble of self-defence. Indeed, if Mosul, tackle the way violence in relationships can help out, it will endeavour to do so. and for authoritarian master-disciple
disparate forces and prevent them Iraq’s predominately Sunni second affects family planning. We believe this is the duty of Six-party talks doomed relationships to reassert themselves in
from falling apart and fighting, let city, is to rise from the ashes, local Danielle Spencer responsible government and by no the classroom.
alone encourage them to work together Sunni leaders must be empowered to Women’s Rights Adviser, means equates to a conscious policy of to end in stalemate The situation in Turkey is turning
in rebuilding the Iraqi state. lead the process of reconstruction. ActionAid UK nationalisation as was the case in Sir, Kurt Campbell’s suggestion quite grave and growing worse.
There does not even appear to be a Isis still controls numerous towns, as several western European countries in (Comment, July 8) of restarting the Western policymakers should be far
plan for governance and security in well as ungoverned areas of cyber Cautious Poland avoided their own period of postwar moribund six-party talks offers no more concerned than they are. The
Mosul in the aftermath of a battle space. Many of its fighters have development, and more recently! incentive to North Korea to rejoin them current upheaval will not be contained
which has displaced nearly a million escaped recent battles, shaved their others’ financial excesses Balanced ownership between private after an absence of eight years. The easily.
civilians and caused untold damage to beards and melted away. They are now Sir, Your beyondbrics article “Poland’s and public is a given and needs to be talks are so structured as to produce Dr Mark A Wolfgram
basic infrastructure. The committee waging an insurgency with terrorist rush to banking sector socialism” approached with flexibility. Poland stalemate: North Korea, China and Ottawa, ON, Canada
set up to help local leaders rebuild the tactics, mirrored on a global scale. No (, June 30) demands a balanced welcomes all and every investor who Russia on one side; the US, South Korea
city, made up of Kurdish officials, the doubt the fall of Mosul is a propaganda response. The authors distort the wishes to participate in and contribute and Japan on the other. Cancelling out electric
Baghdad government and the US-led blow to their poisonous, millenarian reality and intent of this and previous to the further success of Europe’s only Mr Campbell avoids the obvious
military coalition, has never been con- ambitions. But for the coalition forces governments’ prudent oversight of the country to maintain year-on-year gross solution: direct talks between cars’ green credentials
vened. Other Iraqi areas have been ranged against them, victory could yet continually growing and maturing domestic product growth since 1991. Pyongyang and Washington, with a Sir, In your editorial on electric cars
similarly ill-served in the wake of their turn out to be as perilous as defeat. banking sector in Poland. Tadeusz Kościński reasonable agenda. Or, if this is not in (“Volvo delivers an electric shock to
This cautious policy has helped avoid Undersecretary of State, Mr Campbell’s vision, the convening of carmakers”, July 6), you say that “if
the excesses of more than one Ministry of Economic Development of a peace conference ending the 67-year- your battery is charged from a coal-
European financial institution that led Poland old Korean war. Such a conference can fired station emitting clouds of noxious
directly to some of the major problems and will solve outstanding matters that gas, the environmental advantages
experienced following the financial It takes a generation to seem intractable, including the nuclear peter out”.

An arbitrary benchmark crisis of the late 2000s. That some of

these European entities were also
vested in the Polish banking sector
change the tone of politics
Sir, On reading Tony Barber’s
Robert Cambria
New York, NY, US
Congratulations on highlighting
a fact about which the rest of the
British media seem to have collective

for access to new drugs meant that in several instances their

problems spilled over into Poland,
impeding their ability to support and
observations on young, pragmatic,
reformist leaders succeeding where
their elders failed (July 7), I was
Former co-ordinator, Committee for a New
Korea Policy
Trevor Tarring
Weybridge, Surrey, UK
fund their Polish operations. When reminded of the great physicist Max Only Trump got the memo
Policy is an admission the UK cannot afford to be at the cutting edge such a bank takes a strategic decision Planck’s description of how science
to sell its business in any country it really works: “A new scientific truth Sir, Did the other members of the G20 COMMENT ON FT.COM
There has been no lack of agonising It has obvious implications for patients should be free to do so; such are the does not triumph by convincing its not get the memo advising that it was Gavyn Davies’ blog
over the financial strains on England’s in England — who are already unable to rules of an open market economy, as opponents and making them see the “Bring Your Daughter To Work Day”? There’s a continuing strong and co-ordinated
National Health Service, whether the access some drugs that are available, indeed is the case in Poland. light, but rather because its opponents Sarah James global expansion. What is driving it?
results are seen in chronic bed short- not just in the US, but in Scotland. We do not have a policy of eventually die, and a new generation Nuneaton, Warwicks, UK
ages, longer waiting times, or decisions Moreover, while it might help NHS
to deny surgery to smokers. Yet a pol- England fill an immediate hole in its
icy change that would allow NHS man- budget, this would be penny-pinching
agers to ration access to expensive new
treatments, even when they have been
at the cost of long-term efficiency.
It makes no sense to deny access to a London can Hawker centres, the outdoor food
courts where locals gather for cheap
purpose housebuilder and landlord.
Tall towers solved another problem.
its mixing policy means it no longer
has any poor neighbourhoods. It is a
judged cost-effective, has largely
escaped attention. Now, the drugs
drug judged to be cost-effective on the
grounds of short-term affordability. learn lessons on evening meals, are the heart of most
Singapore neighbourhoods. There is
Singapore is the world’s densest
country, if you do not count the tiny
remarkable claim, and one that is
probably only a very slight
industry is resorting to legal action to
try to overturn the policy.
At issue is the introduction of a
Take the controversy over a new treat-
ment for Hepatitis C — it is costly, but
not as costly as long-term dialysis or
living the high one close to my house, where families
sit chatting on brightly coloured
benches as dusk falls, ordering from
enclaves of Monaco and Macau. To
cram 6m into an area half the size of
Greater London, it helps to build up.
The Harvard economist Edward
Glaeser describes Singapore as a “close
“budget impact test” in the process for
evaluating new drugs. Until now, the
transplants for patients with severe
liver damage. The NHS will always face
life from Asia dozens of stalls serving fresh local
favourites, from chicken rice to
Today, roughly four in five
Singaporeans live in public housing,
to ideal” form of urban development,
mostly because it has made tall
National Institute for Health and Care difficult decisions, but a system that Hokkien prawn noodles. The nightly almost all of them in high-rise blocks buildings work. As a greater
Excellence (Nice) has tended to recom- allows managers to delay a transforma- scene provides a pleasing community that often have their concrete flanks proportion of the world’s population
mend adoption of all new drugs it tive new treatment purely on afforda- vision in all respects bar one — the painted in cheerful blues or yellows. moves to cities, and metropolises like
deems to be cost effective, measured as bility grounds takes the pressure off centre is ringed with ominous-looking These estates mostly managed to London cram ever more people into
cost per additional year of quality-ad- them to identify existing practices that concrete residential tower blocks. avoid the problems of crime and social old city centres, building high quality
justed life (Qaly). It uses a threshold of may be of low value. The ubiquity of high-rise living in isolation that dog Parisian banlieues tower blocks is an obvious part of the
about £20,000 to £30,000 per Qaly. Moreover, the £20m yardstick is this small island nation came to mind or the projects of American inner answer.
But it has not been asked to judge if a arbitrary. If financial pressures really in the aftermath of London’s Grenfell cities. Although built by the state, it Singapore’s model is not perfect, of
particular treatment is affordable. are irresistible, the right approach Tower tragedy last month. Beyond the helps that almost all are owner- course. Locals here are, by their own
The whole point of this system was to would be to set a lower threshold in the immediate horror, the Grenfell blaze occupied, part of a vision for a estimation, world-class complainers.
make the decision a technical one,
rather than a political choice. Under
test of cost per Qaly.
The authors of this policy would no Singapore reinforced worries about tenement
living, and led to calls that new blocks
“homeowning society” pushed by
national patriarch Lee Kuan Yew.
HDB residents often grumble about
things like broken lifts, while
the NHS Constitution, patients have a
right to treatments recommended by
doubt argue that they need leverage to
secure better prices from the pharma Notebook in the UK be scrapped. The idea of the
residential tower as an emblem of
The apartments themselves are
cheap and reasonably spacious. Older
purchasers cannot find flats to buy in
their favoured part of town. There
Nice, so long as they are clinically industry. This is superficially appeal- social failure is deeply rooted, not just buildings are regularly refurbished. were safety worries after Grenfell too,
appropriate. Broadly speaking, the sys- ing. However, the UK already has a by James Crabtree in Britain, but across the west; “an Most have hawker centres nearby, like although Singapore has an enviable
tem has worked: Nice is widely mechanism — the Pharmaceutical environment built, not for man, but the one close to my house, along with fire-prevention record. Either way, the
admired internationally and seen as a Price Regulation Scheme — that is sup- for man’s absence”, as JG Ballard put play parks and sports halls. Some wealthy mostly choose to live in
model for other countries. posed to regulate the industry’s rate of it, in his 1975 dystopian novel High- recent blocks have fancier additions, fancier condominiums built by private
Under the new arrangements, Nice return and contain the overall cost of Rise. such as “sky gardens” and rooftop developers, with gyms and swimming
will be able to fast-track approval of prescription drugs. This system gives Yet Singapore, now mentioned from running tracks. (They also all have pools.
cheaper treatments that clearly pass its the drug companies flexibility on pric- time to time as a possible post-Brexit bomb shelters with reinforced blast Yet while there are plenty of
test. But if a new drug is likely to cost ing at launch. They may have an incen- template for the UK, provides a doors, but that is a different story.) quibbles, almost no one mentions the
more than £20m in any of the first tive to set a high price for new drugs ini- hearteningly different vision, in which Perhaps the most significant anxieties you would hear in the west
three years, its funding will be subject tially, since the UK is closely watched tower blocks are not just normal, but difference is that housing is mixed by — that tower blocks are inhospitable,
to commercial negotiations. If NHS by other regulators. But it would be popular, too. Indeed, viewed from income and ethnicity, with the state alien monoliths, unsuited to decent
England cannot reach a deal with the better to reform the PPRS than to cre- Europe or North America, the story of ensuring that each neighbourhood human living. As Britain ponders its
drug’s manufacturer, it can apply to ate a parallel system. public housing in Singapore can seem reflects the population as a whole. own urban prospects after Grenfell, it
Nice for permission to phase the drug The UK’s respected drug evaluation almost miraculous. Tharman Shanmugaratnam, the might reflect that a future built tall in
in slowly, generally over three years. system is a product of less straitened The state Housing & Development country’s brainy deputy prime concrete need not be so grim after all.
This constitutes an admission that times. But the answer to today’s acute Board was set up in the 1960s first to minister, is fond of saying that while
the NHS can no longer afford to stay at financial pressures is to reform it, not clear slums. It then turned into an all- Singapore still has some poor families,
the cutting edge of medical technology. to tear up its fundamental principles.
Tuesday 11 July 2017 ★ FINANCIAL TIMES 9

Britain’s social contract needs urgent attention Banking union
success can be
office as prime minister, promised a
tantalising glimpse of how the contract
seven years and to remind people why
“living within our means” is the only fair
result but also because they will do least
harm to our economy and key public
tion we do real harm in the staffing of
essential public services such as the replicated on the
might be restored. More policy detail on
these areas would be welcome.
It is therefore the lot of 2017 politi-
and sustainable way to manage our pub-
lic finances.
Instead, all political debate now
Governing in the national interest has
to balance these competing demands
NHS and social care. However enthusi-
astic (and that is debatable) the public is
about Brexit they won’t thank the politi-
fiscal front
cians to work out how to repair the con- appears to be shaped by Brexit. Is the and this is only possible by being open cians who, in pursuing a quick exit from
tract or face the consequences. And we person speaking a Leaver or a about the different options and why and the EU, fundamentally undermine their
have to do so in the headwind of Brexit Remainer? Is the argument they are how decisions are then made. This is job security and household finances.

rowing up in suburban Brit- and a slowing economy. Unaffordable putting forward supporting a hard where our parliament comes in. Keep- The call by major business groups for
ain in the 1970s left me with housing, increased automation in the Brexit or a soft Brexit? ing parliament under-informed or a proper transition period must not be
a full knowledge of Abba’s workplace, an imbalance between the thinking MPs and peers can be kept simply dismissed as a call to slow down Enrico
greatest works, as well as regional economies of London and the busy with the Repeal bill, and therefore Brexit. These groups represent the Perotti
the turmoil caused by a
Labour government running out of
south of England and the rest of the
country, a belief that no one listens to
Warning signs are there — won’t want a say on the bigger policy
issues shaping our eventual Brexit, will
frontline of our economy, the people
who employ our constituents and pro-
other people’s money. The opening what the “ordinary voter” thinks, all wages are falling in real not suffice. vide goods and services for domestic
terms, household debt is

words of “Money, Money, Money” contributed to a sense that June 2016 The biggest challenge is ensuring that and overseas markets. uropean monetary union is a
still seem horribly appropriate in 2017 provided the perfect opportunity to the Brexit negotiations and a slowing Ultimately those hurt most by a bad deep historical choice with
— “I work all night, I work all day, to voice these frustrations. rising, confidence is shaky economy do not become inextricably Brexit and a weakening economy are great economic value as well
pay the bills I have to pay/ Ain’t it sad/ Until as recently as 2015 it was how a linked in the eyes of the public. This the very same people who need us to fix as political legitimacy. A
And still there never seems to be a government managed the economy that The task ahead for the government is means that our final Brexit deal should the social contract and opportunities for majority of citizens in the
single penny left for me/That’s too shaped how they were viewed. I’ve been to build the widest possible consensus keep business and household confi- the next generation. There will be no eurozone countries appear to support it.
bad.” a Treasury minister during both an about an issue that has divided opinion dence strong, which means not losing thanks for the politicians who claim to Yet every time there is an election there
The reason that the lyrics still reso- Autumn Statement and a Budget. These in the UK for more than 12 months and sight of the importance of jobs and the have got us out of the EU only to fall off are distress signals and signs of a back-
nate is that for many citizens, Britain’s are big fiscal events that we were always looks like it will continue to do so. Those economy in our negotiations. the precipice with even fewer opportu- lash, especially at the periphery. At a
social contract — the promise that the aware could reset the terms of political of us who campaigned to Remain but The economic warning signs are there nities for people’s children and grand- time when the European project
next generation will have better oppor- debate in the UK for months afterwards. accept the decision to leave the EU need — wages are falling in real terms, house- children. appears to be a safe haven from pop-
tunities than their parents — is broken. The Conservatives should have done to be reassured that the decisions that hold debt is increasing, confidence is ulism, it is time for a grand bargain
Theresa May’s speech on the steps of much more in the recent election to talk have been taken about Brexit are being shaky. Even worse is the possibility that The writer is Conservative MP for Lough- between the core and the periphery of
Downing Street in July 2016, as she took about our economic record over the past made both to respect the referendum in prioritising the control of immigra- borough and a former education secretary the eurozone, based on mutual under-
The countries of the eurozone differ
in terms of institutional quality, a fact
not reflected in economic models. These

Brexit and the

differences are not as pronounced as
those between developed and develop-
ing countries, yet the quality of political
governance and legal enforcement var-
ies a great deal across the single-cur-
rency area. What are the consequences?

prospect of
A diverse monetary union is good for
growth. It is also very redistributive. In
good times, it allows weaker economies
to borrow and spend more. In hard
times, these weak countries experience

fiscal stress as they can no longer
devalue. Some solidarity is therefore
needed to ensure long-term stability.
Monetary union created a weaker
currency for the core because the euro
exchange rate is a weighted average, so
it does not reflect the productivity of the
core countries. The effect was evident
side of the channel. Job losses would from the start. Germany joined the euro
FOREIGN AFFAIRS mount in manufacturing and a range of at a time when reunification had led to a
service industries, from finance to trade deficit and falling productivity.
Gideon pharma. And as investment was
Rachman diverted to continental Europe, the
economy would take a permanent hit. A
weakened Britain would then turn to
It will be necessary for
Donald Trump’s America, in the hope countries on the periphery
that the US president would make good of the eurozone to accept

hings are going badly wrong on his promise of a “very, very big” trade
in Brexit-land. The UK deal. But the dream of a proud, prosper- external discipline
government is weak and ous, “global Britain” would look like a
divided. The EU is confi- sick joke. Brussels perspective, has made the UK country’s “century of humiliation” The resulting public anger is likely to Both recovered steadily in Germany
dent and uncompromising. The third humiliating outcome an awkward customer that has never (which began in 1839) the centre of a cause a further polarisation in domestic under the euro, while they fell at the
The negotiation clock is ticking and only involves Britain realising that there is no accepted the concessions of sovereignty nationalist ideology that its neighbours politics. The nationalist right is likely to periphery. Today, the German surplus is
the wilfully deluded now believe that a good Brexit on offer and abandoning the that are necessary to make the EU work. find increasingly threatening. Vladimir blame Europeans for allegedly ganging larger than Belgian gross domestic
“cake-and-eat-it” Brexit is on offer. whole idea and returning meekly to the The Eurocrats murmur that if Britain is Putin’s sense of humiliation at the col- up on Britain and the liberal establish- product.
Instead, Britain appears to face a choice EU fold. Even to secure agreement to humbled by Brexit, that might have a lapse of the Soviet Union has driven ment in the UK for “selling out the coun- As strong countries have gained in
between three different types of humili- this outcome from the EU27, Britain positive effect in the long run, persuad- Russian revanchism in Ukraine and try”. The Corbynite left would also stoke competitiveness while weaker econo-
ation. might have to give up its cherished ing the UK eventually to return to the Georgia. Going further back, German anti-establishment anger, and would mies have faced a higher and rigid
The first humiliating outcome is that budget rebate. EU with a more realistic assessment of humiliation, following defeat in the first use the general chaos to push for a exchange rate, solidarity in difficult
Britain becomes so desperate for a trade Each of these results will cause dis- its own power, and of the benefits of the world war and the punitive terms of the massive expansion in the state — and a periods is not just prudent, it is essential
deal that it is forced to accept the EU’s may and anger in Britain. But there is an European project. Treaty of Versailles, contributed might- radical realignment in British foreign to the ongoing legitimacy of the single
terms, more or less in their entirety. argument that a dose of national humili- But is humiliation really good for a ily to the rise of Hitler. and defence policy. That, in turn, would currency itself. Furthermore, it is in the
That will mean that Britain agrees to ation can be good for a country. The country? It is arguable that Britain’s But if post-1918 Germany offers a provoke a counter-radicalisation by long-term interest of the core. In the
pay a bill of up to €100bn in gross terms, writer Ian Buruma argued recently that much-prized record of political moder- warning about the dangers of national the right. event of a euro collapse, capital would
merely to get trade negotiations going. British and American politics have ation is connected to the fact that the humiliation, post-1945 Germany dem- But it also possible to imagine more flow to safe havens, and core countries
To then secure access to the single mar- become vulnerable to nationalist self- country has never really been humbled. onstrates that being humbled can some- cheerful scenarios. A country that has may experience a sharp revaluation.
ket, Britain would have to make further harm because, after the second world Angry and confused countries often times be good for the soul. Out of the made the self-mocking ditty “Always At the EU core there is an intellectual
humbling concessions — accepting free war, “generation after generation grew take refuge in political extremism or moral and physical ruins of Nazism, the Look on the Bright Side of Life” an alter- recognition of the gains that have flowed
movement of people and the jurisdic- up with . . . the feeling of being special”. aggressive nationalism. The Chinese next generation of Germans built a native national anthem, might have the from monetary union. But there is also
tion of the European Court of Justice. All of the other big nations in Europe government has made avenging the country that is now rich, stable and ability to shrug off a Brexit humiliation. mistrust of weak institutions. Transfers
An alternative humiliating outcome experienced occupation, defeat, humili- widely admired. Stereotypes about Britain’s “national to a bottomless pit are politically unac-
would involve Britain refusing to make ation or the collapse of democracy dur- Fortunately, however badly Brexit character” tend to emphasise pragma- ceptable. As institutional differences in
an agreement on these terms and crash-
ing out of the EU without a deal in March
ing the 20th century. By contrast, Brit-
ain takes a frank and understandable
The UK’s national pride, goes, it will never be a humiliation to
rank alongside responsibility for the
tism, a sense of humour and an ability to
cope with adversity. The Brits may need
the eurozone are structural and persist-
ent, solidarity must come with more
2019. British goods and lorries would pride in never succumbing, in its mod- viewed from Brussels’ Holocaust or occupation by a foreign all of those qualities to cope with the discipline, ensured by a transfer of
then stack up at the Channel ports, as
they hit new trade and customs barriers
ern history, to political extremism or
military defeat. However Britain’s
perspective, has made it power. Nonetheless, any of the three
possible Brexit humiliations will be a
fallout from Brexit. responsibility for specific budgets to the
centre (for example, to the eurogroup).
— amid general sniggering on the other national pride, viewed from the an awkward customer profound blow to national confidence. A eurozone treasury could adopt a sen-
sible policy for the issuing of eurobonds.
The eurozone could achieve lasting
stability with a fair and grand bargain,
or solidarity in exchange for a shift in

Neurohacking robots blur what it means to be human sovereign powers to ensure compliance.
The banking union is an example of a
credible common institution. Its success
can be replicated on the fiscal front.
Up to now, the main relief to rigid cur-
Humanoid robots are already being unplug it any time you want. And we The first is that humanoid robots are facial expressions and body move- rency and fiscal conditions at the
TECH NOLOGY used as security guards, nursing assist- should keep it that way.” entertaining, fun, artistic creations that ments. Robots can act as AI learning periphery has been provided by a
ants, teachers and sex toys. Within 10 The distinctions between man and can help forge new “pathways of com- platforms to absorb our ways. relaxed, uniform monetary stance.
John years such robots will surely be a lot machine may be clear in a seminar munication”. They are, as he puts it, like In that sense, creating humanoid Once a credible fiscal covenant is set,
smarter than today and in some room but are a lot more blurry in the computer animations in physical shape, robots is a provocative act, designed to monetary policy should be allowed to be
Thornhill respects may be all but indistinguisha- outside world. Millions of people have the next figurative art form. trigger debate about the scope of asymmetric, targeting those points
ble from humans. Is this a good idea? electronic pacemakers and hip implants Just as Disney cartoonists exaggerate machine intelligence. AI-enabled robots where monetary constraints are tight-
There is a persuasive school of and so could technically be counted as facial features to trigger supernormal make visible what is all too often invisi- est. At present the core is at risk of over-
thought that argues not. The line cyborgs. Collaborative robots (or stimuli in the brain, so humanoid robots ble. “If we develop AI and it’s just behind heating, while the periphery remains

o, I turned to Sophia and between man and machine should cobots) have been working in harmony can be made to appear more human the scenes in a big server farm, it’s alien half choked. Recall that local interest
asked: “Are you going to never be smudged because it risks dehu- than humans. “We are neurohacking to humans,” he says. rates were too low for Spain during the
destroy us?” manising humans. Plus, as the joke people. That’s what artists do,” he says. Much of Mr Hanson’s talk seems way credit boom. Now they may be too low
“Not if you’re nice to me,”
she replied.
runs: “You shouldn’t anthropomorphise
computers because they don’t like it.”
Mapping the line between His second argument is that we want
computer systems to understand
out there and is freighted with its own
moral concerns — humanoid robots that
for Germany.
All eurozone economies are locked in
It’s always a little unnerving talking The philosopher Daniel Dennett is an man and machine is one of human values, cultures, and behaviours can be used for benign purposes can place by the monetary union. If the core
with a non-human, as I did at a recent
FT125 Forum event, but it is an experi-
eloquent advocate of this line of reason-
ing. He argues that we should regard
our most intriguing, and so that we can create “moral machines”
to minimise the dangers of artificial
have malign ends too.
Mapping the contours between
attributes its success only to its own
(visible) merits, it would ignore basic
ence we are going to have to grow used to robots as nothing more than technologi- creepy, challenges intelligence going awry. Algorithms in humans and machines is becoming one economics and ensure permanent insta-
as the robot revolution unfolds. cal tools or digital slaves designed to do self-driving cars, for example, may indi- of the most intriguing, and at times bility. For the periphery, by contrast, it
Sophia was well programmed to our express bidding. It is dangerous to with humans on the factory floor. Dis- rectly determine life and death. That is creepy, challenges of our times. Huge will be necessary to accept external dis-
respond to human fear of machines but endow them with human characteris- embodied digital assistants, such as Siri, why some car companies have amounts of money are also to be made cipline. The case for solidarity along
many of her answers were a little tics they do not possess. To kit them out Cortana and Alexa, are “talking” with employed philosophers to devise ethical from exploring this interface. these lines balances costs and benefits,
clunky. What was mesmerising was her with “cutesy human stuff” amounts to millions of us every day. settings for their driving systems. But perhaps the greatest contribution and would ensure long-term stability.
lifelike facial features. Capable of smil- false advertising. Sophia’s creator, David Hanson, the Mr Hanson is literally putting a face humanoid robots can make is to force us At a time of great uncertainty, Europe
ing, frowning, scowling, winking, “We want to be sure that anything we founder and chief executive of Hanson on AI systems to increase mutual under- to consider what really distinguishes needs a fair and grand bargain more
Sophia was exceptional at mimicking build is going to be a systemological Robotics, makes two main arguments as standing. Computers use natural lan- man from machine. What makes us than ever.
human expressions thanks to some wonderbox, not a moral agency,” he told to why we should continue developing guage processing to communicate with truly human?
clever nanotechnology and artificial me earlier this year. “It’s not responsi- humanoid robots, one playful, the other humans. But a lot of human communi- The writer is professor of international
connective tissue. ble, it doesn’t have goals. You can deadly serious. cation is non-verbal, depending on finance at the University of Amsterdam
10 ★ FINANCIAL TIMES Tuesday 11 July 2017

Cosco/OOIL: banking on an upturn

Chinese container shipper Cosco is buying Hong Kong rival Orient Overseas with the help of state financing.
If the recent recovery in container rates continues, it will look a shrewd purchase.

Shipping consolidation Net debt to equity

Twitter: @FTLex Email: Buyer/target, total transaction size ($bn) Ratio
0 1 2 3 4 5
conferred by uniquely German Cosco/OOIL Hapag-Lloyd
Stada Arzneimittel: domination agreements. (Jul 2017) 10.4 Evergreen
Great Plains/Westar:
common dominator Just as killing the lice removes the Mitsui OSK utility function
nits from the scalp, so scrapping these Nippon Yusen
One of Stada Arzneimittel’s lead agreements would remove the need for 8.0* /UASC
Kawasaki Kisen
Never conflate the investment decision
products is Hedrin, a treatment for complex minority rights. (Jun 2016) with the financing decision, profess the
Yang Ming
head lice. But the convoluted pursuit of corporate finance textbooks.
the generic German pharma group by CMA CGM/ Sometimes, it takes a state regulator to
Neptune Orient 5.6 Hong Kong to Los Angeles container rates
two private equity firms has given its Norsk Hydro: (Jul 2015) $ per 40-foot container teach company managers this lesson.
investors plenty else to scratch their 2500 Yesterday, two Midwestern utilities,
heads over. miracle works Maersk/ Great Plains Energy and Westar, said
Yesterday, Cinven and Bain Capital 3.9 Hamburg Süd 2000
they would combine in a nil premium,
(Dec 2016)
relaunched their offer for Stada. The Turning water into wine makes a good 1500 all-stock deal creating a group with an
target, managed by a new chief fable. Converting water into Pan Ocean 2.6 1000 equity value of $14bn. Both are
executive following the ousting of the aluminium is good business. Norsk (Dec 2014) middling operators in a consolidating
previous incumbent, has backed the Hydro of Norway does just that, using 500 industry. A combination is sensible.
* Estimated
move. So too has BaFin, the German cheap hydro power to run its smelters. FT graphic Sources: S&P Capital IQ; FT research; Jefferies; Bloomberg; Drewry 2015 16 17 It makes so much sense that the pair
regulator. About a fifth of shareholders The next step, transforming smelted announced a deal more than a year
have indicated their acceptance. metal into products for industry, is ago. But that transaction was a pricey,
The tweaks to the terms are minor. unlikely to prove as lucrative. Hong Kongers are generally reluctant proposal is helped by a bridge loan conditions in both Europe and the US mostly-cash buyout that entailed the
The duo is offering a mere 25 cents Yesterday, Norsk announced it would to relinquish control to Beijing. But a from Bank of China. This highlights and consolidation among shipping smaller Great Plains paying a near
a share, or 0.3 per cent, more than become the world’s leading integrated cash offer at a 31 per cent premium to Beijing’s influence at a time when ship groups. The Cosco/OOIL combination 40 per cent premium to Westar
the failed €66 cash bid. A competing aluminium producer, from mined ore Friday’s closing price convinced the financing elsewhere in the world is will be the third largest, after Maersk shareholders. Westar, naturally, liked
offer is unlikely, since the original to finished product, after buying the family of the territory’s former chief reeling from writedowns and losses. and privately held MSG. that structure. Kansas regulators did
proposal was the product of an auction half of products maker Sapa that it did executive, Tung Chee-Hwa, to sell its State financing support is also useful Orient Overseas shares trade not, ruling in April that the deal was
process. not own. It plans to boost its exposure 68 per cent stake in Orient Overseas because Cosco is already among the roughly at their book value — a three- not in the public interest given the risk
The minimum acceptance level has to downstream customers, such as the (OOIL) to a pair of Chinese shippers more highly indebted global carriers. If year high, but still a discount to Asian to ratepayers from such a leveraged
dropped to 63 per cent. The previous already flagging automobile industry. led by state owned Cosco. Both hope all OOIL shareholders accepted its bid, peers. Maersk is estimated to have electricity provider. Give both Great
bid attracted 65 per cent support from Norsk did not pay very much; a price others will like the $6.3bn valuation. then Cosco’s existing net debt of $4bn acquired Hamburg Süd at roughly Plains and Westar credit for
a fragmented shareholder base — just of just over 3 times Sapa’s likely Overcapacity and a slowdown in could jump to a multiple of twice its 1.3 times book value. appreciating that the combination
short of the 67 per cent required. forward earnings before interest, tax, global trade have hit shipping equity. Shares in the target company offered enough benefits to try again.
Bain and Cinven almost certainly depreciation and amortisation sounds margins in recent years. Both Cosco Its creditors will clearly need jumped a fifth but are still short of The $60 per share that Great Plains
intend to end up controlling the reasonable. And shareholders in and Danish market leader Maersk patience. But there are signs that the the bid price. That reflects the fact initially agreed to pay Westar
company. The only question is how. Norwegian conglomerate Orkla, Sapa’s lost money in the past two years. shipping cycle might be turning. that further regulatory approvals are shareholders required $8bn in new
The usual method would be to apply other owner since 2013, should be Korea’s Hanjin filed for bankruptcy Container rates from Hong Kong to the required in the US and Europe. debt. The need to generate cash to
for a “domination agreement”, which pleased. It has announced a special in August 2016. west coast of the US have more than But the 5 per cent rally in Cosco’s service the debt may have required
allows a majority shareholder to dividend of almost 6 per cent on its Chinese banks helped rescue OOIL doubled from their 2016 nadir, shares highlights the potential Westar customers to pay unnecessarily
control a subsidiary’s cash flows and undisturbed price. during the previous downturn and according to Drewry data. The industry rewards from China’s countercyclical higher bills. The new terms are less
direct its managers according to its Yet the deal, NKr13.5bn ($1.6bn) in are pivotal in this one too. Cosco’s is benefiting from improving economic backing for consolidation. dramatic for Westar shareholders,
own interests. Minority shareholders cash, looks dilutive to Norsk’s group valuing their shares at $53.
accept this seemingly unpalatable state operating margin. Whether it is good Earnings growth will be 6-8 per cent
of affairs because they get protections news for shareholders depends on how a year, and dividends will rise
of their own, including the right to quickly Sapa can be banged into the a better tale on cost savings to justify case. Interim chief executive Keith amortisation is on target and Liberum’s accordingly. The groups say that they
request a court appraisal of any required shape. Sapa had operating buying Sapa at this point in the Cochrane has ordered a strategic estimate of £900m of net debt in the can knock 15 per cent off of their
eventual exit price. A decade ago, margins of 5.5 per cent in the first economic cycle. review after booking £845m in second half is correct, then Carillion’s combined operating cost base. Each set
hedge fund Paulson used this provision quarter of this calendar year. Norsk unexpected contract provisions. 3.5 times debt ceiling could be of shareholders only benefits if that
to squeeze a big premium out of group estimated that margins for this Cutting the dividend — saving about breached. It plans to sell its Middle really happens. The clear thinking
Blackstone for its holding in Celanese. year should be double that. The Carillion: £80m — is a formality given the East construction business for £125m. from the Kansas regulator is rarely
But a domination agreement difference would have mattered less company’s yield was close to double Carillion has never recovered from seen from acquirers themselves, who
requires 75 per cent ownership. It is when Norsk shared ownership, but what a carry on digits before the latest sell off. An an expensive acquisition of green are happy to use other people’s money
possible that index funds may deliver after the deal closes Norsk will equity raise is a likely next step. energy services company Eaga in 2011. to chase risky deals. But the outcome
this; they could tender their shares consolidate Sapa, which will dilute History loves to scorn false prophets. Assuming, that is, the company can Exiting the Middle East means more shows that the strategic benefits of a
later in the process, once it becomes profitability. It promises to cut Carillion’s brand of corporate make it there in one piece. UK dependence, already nearly three- deal can still be extracted even within a
clear that Stada faces deletion from the NKr200m in costs every year. That will soothsaying — slogan: “Making Mr Cochrane’s claims that Carillion’s quarters of revenues, and not more conservative capital structure.
MDax index. If not, Bain and Cinven be unlikely to lift margins more than tomorrow a better place” — has net debt is presently “well within” necessarily a bad thing. UK support Alas, most industries do not attract
could make a subsequent delisting half a per cent. True, once the assumed received its comeuppance. Yesterday, banking covenants may look stretched services, half of group sales, is mostly such stringent third party oversight.
offer. This makes clear to minorities saving is taxed and capitalised the net the support service group’s chief soon. Over the next six months, when public contracts, with decent margins Corporate America should look more
that they face a choice between cash price looks cheaper still. executive quit in the wake of a profit cash outflows are seasonally higher, an and less cyclicality than construction. often at its bookshelves.
tendering, or owning shares in an Then again, maybe Sapa just warning. Carillion’s problems may be additional £100m-£150m profit hit Disposals will give Carillion a little
unquoted company. deserves to be cheap. Aluminium has a just beginning. could come from increased breathing space. But with debt
These game-theory permutations high degree of economic sensitivity, A 40 per cent decline in one day for a impairments. Assuming the company’s covenants at risk and a cash call Lex on the web
For notes on today’s breaking
give minorities extensive rights, but given its exposure to transportation FTSE 250 company’s share price might forecast of £234m in annual earnings expected, Carillion will need to find stories go to
only as a quid pro quo for the powers and packaging. Norsk will need to spin suggest overreaction. Not in Carillion’s before interest, tax, depreciation and that better place soon.

No. 15,598 Set by ARMONIE
1 Convention competently 1 Welcome law restricting fungal

handles failure, on reflection growth (6)
  (8) 2 Conservative member on the
5 A quiet drive to religious cricket field (6,3)
retreat (6) 3 One poorly formed
10 Agitate Chinese vessel (5) arrangement to make easy
11 Art Hilton devised sports event profits (5,3,3,4)
(9) 4 Greek infiltrating the French
12 Alliance views shared link (5,4) network (7)
13 Covering for hen (5) 6 Calm down with early music
 14 Vocal arrangement by compositions to deal with
European found in recess (6) grudges (6,3,6)
15 Clio sat composed and 7 Turn the corner in driving
 resigned (7) contest (5)
18 Space for large English curry 8 Fellow bit monkey (8)
   (7) 9 Various old aquatic birds (6)
20 Passionate painter’s in India (6) 16 Charlie’s urged to be contrite
22 Edward keeps relationship (9)
  lukewarm (5) 17 Greek god endlessly leading
24 Guide for much-loved autocrat Greek philosopher (8)
short of time (9) 19 Miss people without support
  25 Once more treat commander in (6)
silence (9) 20 Old US president’s domains
26 Swill some beer in Serbia (5) regulated (7)
27 Novice appears in The Seraglio 21 Beast takes redhead for partner
in New York (6) (6)
JOTTER PAD 28 Partial description of a Möbius 23 Musician is quiet in supporting
strip (3-5) part (5)

Solution to Saturday’s prize puzzle on Saturday July 22

Solution to yesterday’s prize puzzle on Monday July 24
Winners’ names will be printed in Weekend FT
Tuesday 11 July 2017 ★ 11

Shire Eon M&S Brent crude 10-yr Treasury FTSE 100 Dollar / yen 10-year Bund
Out of the mire Banks can soon
be an engine of UK productivity 3.2% 2.2% 1.6% 0.6% 2bp 0.3% 0.2% 3bp
£41.86 €8.43 339p $46.99 2.38% 7,370.03 ¥114.13 0.54%

‘Big oil’ plays down electric threat Short

3 Shell and Aramco defend ‘reliable’ fossil fuels 3 Renewables shift to take ‘generations’
sources like oil and gas, on the mistaken to ban sales of all petrol and diesel cars areas such as air travel, shipping and
assumption that alternatives will be by 2040. ‘There is heavy freight that cannot be electrified Hughes
Two of the world’s largest oil companies rapidly deployed,” Amin Nasser of Listed oil companies such as Shell are not one, using current technology.
have hit back against predictions that Saudi Aramco told an energy confer- facing increasing scrutiny from inves- “There is not one, single energy tran-
electric vehicles threaten a collapse in ence in Istanbul. tors over the risks posed to their busi- single sition under way but many, all running Which came first: the rally in emerging markets, or the
demand for hydrocarbons and warned Addressing the same event, Ben van nesses by renewable energy. energy alongside each other . . . [and] they will boom in their tech stocks? The sector has become the
that global energy security would be at Beurden of Shell said that the transition Meanwhile, Aramco, the Saudi take many decades to play out,” said biggest single grouping in emerging markets this year for
risk if investment was withdrawn from to low-carbon technologies would “take Arabian state oil company, needs to transition Mr van Beurden. the first time since the dotcom boom. Cue several as-yet
fossil fuels too soon. place over generations” rather than as a convince potential shareholders of its under way’ But Mark van Baal of Follow This, a unsuccessful efforts to label EM techs with a catchy equiv-
Saudi Aramco and Royal Dutch Shell rapid “revolution”. long-term appeal ahead of a planned group of activist “green” shareholders in alent to the Fangs (Facebook, Amazon, Netflix and
acknowledged that a shift towards Their comments followed a spate of flotation. Mr Nasser said that, while Ben van Beurden Shell, said that Mr van Beurden was Google) in the US. But simply equating the sector with hot
renewable energy — including battery- developments that have suggested expectations for alternative forms of Shell being too complacent. US tech rivals sells it short: hardware, as well as internet
powered cars — was under way but said decarbonisation of the global economy energy were going “through the roof”, “The world needs to get to zero emis- enthusiasm, is driving this rally.
that oil and gas would remain indispen- is gathering pace. These included last the reality often fell short. Electric vehi- sions by 2050 [to tackle climate Emerging market equities are enjoying their best year
sable for decades to come. week’s announcement by Volvo, the cles, for example, today make up less change]. In our opinion, that means since 2009, with MSCI’s benchmark index up 17 per cent.
“There seems to be a growing belief carmaker, that all new models would be than two-tenths of 1 per cent of the stopping exploring for oil and gas and Strong exports and earnings upgrades are the biggest driv-
that the world can prematurely disen- partially or completely battery- 1.2bn global vehicle fleet, he said. starting exploring for new business ers, particularly in Asia, which accounts for more than
gage from proven and reliable energy powered from 2019, and a French plan Mr van Beurden also highlighted models,” he said. two-thirds of the index (and all of its tech stocks). Even
profits at unloved Chinese groups are generally expected
to rise, giving Asian EM stocks one of their best-ever runs
of improving profit forecasts, at 12 months and counting.
The tech sector, up 38 per cent this year, has led the
advances. Within that, Tencent and Alibaba are up 43 per
Wrong fit cent and 62 per cent, respectively. Samsung Electronics is
Abercrombie & Fitch 35 per cent higher and poised to overtake Intel as the
world’s largest chipmaker. Taiwan Semiconductor, the
merger talks end world’s biggest chip foundry, has gained 18 per cent. Com-
bined, they have added $325bn in market capitalisation.
Tech hardware stocks are benefiting from several
Abercrombie & Fitch, the struggling trends. One is the perennial optimism around the rise in
teen fashion retailer, said yesterday that emerging economies’ disposable income as a middle class
it had terminated talks over a potential develops. Another, more specific theme is the rising global
merger, sending its shares sinking, write demand for chips and specialised components to power an
Adam Samson and Mamta Badkar in increasing range of devices. After years of consolidation,
New York. supply options are limited — and most are out of emerging
The decision, which sent shares Asia. There is also the looming launch of Apple’s iPhone 8.
sliding 20 per cent in early trading, Speculation abounds in the Asian tech supply chain as to
dashed investor hopes raised by its which group has won a share of orders. About a third of
statement in May that it was in Taiwan’s tech sales are iPhone-related, says Citigroup.
preliminary discussions with several In spite of the hype, emerging market tech stocks are
parties. “After a comprehensive review still cheaper than US counterparts at 15 times earnings,
of all relevant factors, with the compared with 18 times, according to BNP Paribas. That
assistance of our financial adviser, the might spur tech lovers, whether internet enthusiasts back-
A&F board of directors determined that ing Alibaba or fans of Samsung and its component bets, to
the best path to enhance value for push this rally further still.
stockholders is the rigorous execution of
our business plan,” said Arthur Technology taking over
Martinez, executive chairman. Sector weightings in MSCI EM index
Abercrombie had received interest (%)
from Express and American Eagle Tech stocks
Outfitters, the Financial Times reported Financials
this spring, and private equity sponsors Materials
were also reported to be considering bids 20
Randal Konik, analyst at Jefferies, said The tech sector,
that getting a bid at an acceptable which is up 38 per
premium had always seemed a long 10 cent this year, has
shot. “The state of apparel retail remains led the recent
challenged and its future uncertain, 0 advances in
likely contributing to a limited number 1994 2000 05 10 15 17 emerging market
of financial sponsors in the process with Source: BNP Paribas equities
serious interest,” he said.
Craig Warga/Bloomberg

Facebook’s Oculus in fresh price cut as

VR fails to make ground in real world
TIM BRADSHAW — SAN FRANCISCO the world’s largest social network in quality headsets — Sony’s PlayStation
a $2bn deal in 2014, Oculus has made VR and HTC’s Vive.
Facebook-owned Oculus is cutting the
slow progress in its mission of bringing Analysts have attributed the slow
price of its Rift virtual reality headset
virtual reality to a wider audience. progress of VR to a combination of high
for the second time this year, as VR
Brian Blau, analyst at Gartner, said prices and limited availability of high-
continues to struggle to gain traction
potential purchasers of VR headsets quality content. Oculus is trying to
among mainstream consumers.
were “enthusiastic and very interested, address both with its “Summer of Rift”
Dalian Wanda develops The price of a bundle including the Rift but they are not buying it at the level of promotion.
a theme with park sales headset and a pair of Touch motion- other kinds of technology where there’s There are now more than 500 games
sensitive controllers will be $200 lower such a large hype factor”, such as smart- and apps available for the Rift, includ-
China’s Dalian Wanda is to sell a at $399 for a “limited time”, Oculus phones when they first emerged. ing Star Trek: Bridge Crew, which puts
majority stake in many of its theme announced yesterday. The offer means Gartner estimates that fewer than 5m players on deck inside a starship of the
parks to rival developer Sunac in a that the Rift bundle is now available for VR high-end headsets such as the Rift venerable sci-fi franchise, and TV car-
Rmb63.2bn ($9.3bn) deal. The sale is half the combined $800 cost at which have been sold since they went on sale a toon spin-off Rick and Morty.
part of Wanda’s policy of selling its the devices launched last year. Oculus year ago. According to a report last “All of a sudden, that’s a very good-
property assets to investors with brought in its first, permanent, $200 month by analyst group IDC, the Oculus sized library but it’s still not like the app
whom it would share its rental income. price reduction four months ago. Rift sold just over 99,000 units in the store on smartphones,” said Mr Blau. “It
Report i PAGE 12 Despite single-handedly reviving the first quarter of this year, and is lagging will likely be a long time before we get
VR market and winning the backing of far behind its main competitors in high- there.”

Companies / Sectors / People

Companies Dalian Wanda.............................................12 Kier...................................................................19 Orkla..........................................................10,14 Total................................................................14 Transport......................................................15
Abercrombie & Fitch..............................11 Diageo............................................................19 Kohl’s..............................................................19 Panasonic.....................................................13 Trinity Mirror.............................................14 Travel & Leisure......................................12
Accenture.....................................................15 Dunelm..........................................................19 LG......................................................................13 Partech Ventures....................................15 Tudor Management..............................20 Utilities.....................................................10,12
Adecco...........................................................15 EY......................................................................15 Lazard............................................................12 Paulson..........................................................10 UBS .................................................................13 People
Adnoc.............................................................14 Elliott Management ..............................12 LeEco..............................................................12 Roche..............................................................19 Umicore.........................................................13 Bacon, Louis..............................................20
Alibaba............................................................11 Energy Future Holdings......................12 Legal & General.......................................15 Rolex...............................................................14 Unibail-Rodamco......................................15 Ben-Zeev, Ittai..........................................20
Amazon...............................................11,14,19 Esure...............................................................19 Lithium Americas....................................13 Royal Dutch Shell....................................11 Volvo................................................................11 Beurden, Ben van....................................11
American Eagle Outfitters..................11 Exor.................................................................14 Lloyds.............................................................12 Samsung...................................................11,13 Wall Street Journal................................14 Bezos, Jeff...................................................14
Anbang..........................................................12 Express...........................................................11 Louis Vuitton.............................................14 Sapa...........................................................10,14 Warburg Pincus........................................15 Brandtzaeg, Svein Richard................14
Apple..........................................................11,14 Facebook.................................................11,14 L’Oréal............................................................15 Saudi Aramco.......................................11,14 Weir Group..................................................13 Buffett, Warren........................................20
AutoNation..................................................19 Fosun..............................................................12 MSG.................................................................10 Schroders.....................................................19 Wells Fargo.................................................12 Burke, Michael...........................................14
BASF................................................................13 Gap...................................................................19 Maersk......................................................10,15 Serco...............................................................19 Westar............................................................10 Cochrane, Keith..................................10,13
Bain Capital................................................10 Gazprom.......................................................14 Matalan..........................................................18 Shanghai International Port.............15 Westar Energy..........................................12 Corfield, Graham......................................12
Bain Capital ...............................................15 Global Logistics Properties...............15 Mediterranean Shipping Co..............15 Shire................................................................19 Whole Foods..............................................19 Coster Tjeenk Willink, Engelbert...15
Balfour Beatty...........................................19 Goldman Sachs...................................12,18 Mitie.................................................................13 Siemens.........................................................14 Yugra..............................................................15 Deak, David.................................................13
Barclays.........................................................12 Google.......................................................11,14 Mobileye......................................................20 Société Générale......................................18 Elkann, John...............................................14
Berkshire Hathaway..............................12 Great Plains Energy.........................10,12 Moore Capital .........................................20 Soho China..................................................12 Sectors Green, Philip...............................................13
BlackRock.....................................................18 Guggenheim Securities........................12 Morgan Stanley........................................18 Sony..................................................................11 Banks............................................2,9,12,15,19 Grynberg, Marc.........................................13
Blackstone...................................................10 HNA.................................................................12 Natixis............................................................18 Stada...............................................................15 Basic Resources.......................................14 Hanson, David.............................................9
Bloomberg...................................................14 HSBC...............................................................18 Netflix..............................................................11 Stada Arzneimittel.................................10 Financial Services....................................15 Hargreaves, John....................................18
Brevan Howard.......................................20 HTC..................................................................11 New York Times......................................14 Stagecoach..................................................13 Financials.........................................15,18,20 Howson, Richard......................................13
CME Group..................................................18 Hamburg Süd............................................10 News UK.......................................................14 Standard Life.............................................15 Healthcare..................................................7,8 Khan, Zafar..................................................13
Capita..............................................................13 Hanjin.......................................................10,15 NextEra Energy........................................12 Statoil.............................................................14 Industrials..............................................10,14 Martinez, Arthur.......................................11
Carillion..............................................10,13,19 Hanson Robotics.......................................9 Nokia...............................................................15 Sunac..............................................................12 Media..............................................................14 Ming, Mei......................................................15
Celanese.......................................................10 Hermès..........................................................14 Norilsk Nickel.............................................13 TAG Heuer..................................................14 Oil & Gas.................................................11,14 Nasser, Amin...............................................11
China Vanke...............................................12 Inpex Corporation...................................14 Norsk Hydro........................................10,14 Taiwan Semiconductor.........................11 Personal & Household Goods....11,14 Nefedov, Alexei........................................15
Cinven......................................................10,15 Intel............................................................11,20 OOCL..............................................................15 Technopromexport................................14 Pharmaceuticals.............................8,10,15 Ruzicka, Peter...........................................14
Cisco Systems............................................15 Intercontinental Exchange................18 OSTC...............................................................18 Tel Aviv Stock Exchange..................20 Retail....................................................11,18,19 Soros, George...........................................20
Citi....................................................................19 JPMorgan.....................................................18 Oculus.............................................................11 Tencent..........................................................11 Shipping..................................................10,15 Wood, Peter................................................19
Cosco........................................................10,15 Johnson Matthey.....................................13 Oncor..............................................................12 Tesla................................................................13 Support Services..........................10,13,15 Tudor Jones, Paul..................................20
DMGT.............................................................14 Just Eat.........................................................12 Orient Overseas.......................................10 Time Inc........................................................14 Technology...................................2,9,15,20 Tung, Chee-Hwa.....................................10

© The Financial Times Limited 2017 Week 28

12 ★ FINANCIAL TIMES Tuesday 11 July 2017


Elliott challenges Buffett bid for Oncor Patrick

Activist hedge fund set commitment to a counter proposal in Elliott’s plan values EFH at $9.3bn. Berkshire ringfenced from the rest of its utilities
which Elliott would convert its debt into The hedge fund has held talks with a operations, so any financial problems in
to launch rival $18.5bn tilt agreed to
at Texas-based group
equity and inject fresh cash into EFH
through a third party partnership. The
move would allow it to take control of
number of potential partners, including
rival energy companies, infrastructure
funds and wealthy individuals, accord-
other parts of its business would not
affect service to its 10m customers
across the state. Such a solution is likely
Banks can become an
JAMES FONTANELLA-KHAN — NEW YORK Oncor, the crown jewel of the bankrupt
ing to people familiar with the matter.
The remaining 20 per cent of Oncor —
EFH for
$9bn in
to win the regulator’s backing for the
deal being completed.
engine of productivity
Elliott Management set the stage for a
public battle between billionaire inves-
tors yesterday as the activist hedge fund
“While we are entirely supportive of a
transaction with Berkshire or another
third party in the event that the value
which Berkshire did not acquire — is
controlled by Borealis, the subsidiary of
Canadian pension fund Omers, and GIC,
However, for the deal to go through
Berkshire will require creditors to be
onboard as well. Elliott’s opposition to
instead of a brake
controlled by Paul Singer openly chal- provided by that transaction exceeds Singapore’s sovereign wealth fund.
implying the current terms suggests that Mr Buf-
lenged an $18bn bid from Warren Buf- the value being proposed by Elliott, we The deal between Mr Buffett’s holding an equity fett will either have to increase his offer

fett’s Berkshire Hathaway for the Texas fear that the Berkshire transaction does company and EHF was reached after value of or be forced to walk away. irst there was the financial crisis. Now, it seems,
utility Oncor. not provide such value,” the fund said in several other deals had fallen apart due Berkshire and EFH were not immedi- Britain has a productivity crisis. Of the G7 coun-
Elliott, the largest creditor of Oncor’s a letter to the board of EFH dated July 5 to regulatory concerns. $11.25bn ately reachable for comment. tries, only Japan has been registering weaker out-
bankrupt parent company, Energy and published yesterday. NextEra Energy agreed 12 months ago for Oncor EFH used to be known as TXU and in put per worker of late. Last week, data from the
Future Holdings, said the deal Berkshire Berkshire agreed to acquire the to buy Oncor for $18.4bn but the deal 2007, KKR, TPG Capital and the buyout Office for National Statistics showed UK produc-
agreed last week failed to maximise restructured EFH for $9bn in cash, was later blocked by Texas regulators arm of Goldman Sachs acquired the tivity growth went into reverse in the first quarter of the
creditors’ interests and that it was ready implying an equity value of $11.25bn for because they were opposed to a plan company for $45bn in the largest ever year, declining 0.5 per cent.
to launch a rival bid worth $18.5bn. Oncor, which is the regulated transmis- that would have fully merged the two leveraged buyout. It collapsed under the One common assertion is that Britain’s economic reli-
The hedge fund disclosed a series of sion and distribution business of which companies under one umbrella. weight of debt that the buyout groups ance on financial services and related sectors, which
documents yesterday highlighting its EFH owns 80 per cent. Berkshire plans to keep Oncor put on it to finance the deal. boomed pre-2008 then bust disastrously, is responsible for
this “productivity puzzle”. But is that right?
Logic suggests it is. The outsized revenues and profits
that banks and other financial groups made in the run-up
to the crash, much of it inflated by mis-selling and manip-
Travel & leisure. Property ulation, have given way to lower income. At the same time,
banks have had to employ thousands more back-office

Dalian Wanda to sell theme park stakes staff to cope with new compliance and regulatory
demands. Such roles, while crucial, are the very definition
of economically unproductive, unless you count the pre-
ventive benefits that the data struggles to capture.
Sure enough, analysis by the Financial Times this year
showed that banking has been a big sectoral impediment
Rival Sunac will pay $9.3bn to UK productivity growth over the eight years to 2016.
for 76 hotels and take 91% ONS data showed banking, which makes up 4.4 per cent of
the economy, accounted for
holding in tourism projects a fifth of the slowdown in
There are signs
productivity growth. Since
YUAN YANG, CHARLES CLOVER AND 2008 it has grown 1 per cent a that some banks
year, down from 6.4 per cent
in the pre-crisis decade.
are becoming
Chinese developer Dalian Wanda Group Other ancillary sectors, more productive,
said it would sell a majority stake in such as legal services and
many of its theme parks to rival devel- consultancy, were also drags.
not less
oper Sunac China a year after its chair- With finance and related
man boasted of driving Disneyland out services accounting for more than 10 per cent of the econ-
of China. omy, no wonder overall productivity numbers are weak.
Dalian Wanda announced yesterday Yet some brave souls are quietly predicting that banks
that Sunac would pay Rmb63.2bn will lead the UK out of its productivity morass. Do some
($9.3bn) for 76 Wanda hotels as well as digging and, sure enough, there are promising signs that
taking a 91 per cent stake in 13 of some banks are becoming more productive, not less.
Wanda's tourism projects in China. Take Lloyds, the UK’s biggest high street bank. True, it
Wanda Hotel Development’s Hong has had a decade of problems — until recently it was part-
Kong-traded shares rose as much as 155 owned by the state following a 2008 bailout; more than
per cent in early trade yesterday on the any other lender it has been mired in the payment protec-
news, and closed up 47 per cent at tion insurance scandal (cost so far: £17bn); and the reputa-
HK$0.85 tional damage from an old fraud at HBOS, for which it has
Among the projects in the deal was yet to fully compensate clients, is reverberating.
the Nanchang Wanda City, which the But its core business is looking stronger. Though profits
company opened last year and Wanda are still 20 per cent below the levels of the immediate pre-
chairman Wang Jianlin talked up as a crisis tally racked up by the combined Lloyds and HBOS
groups, performance measured in relation to its branch
network and staff numbers
Mr Wang had boasted that has improved sharply.
his theme parks would FT analysis shows revenue
There is probably
per employee last year further to go in
‘make Disney’s China topped £233,000. In 2011 the
venture unprofitable’ figure was £211,000 and in
cutting overheads
2006 £164,000 for the com- relative to
bined group. Revenue per
competitor to Disneyland Shanghai. Mr branch has risen from £7m
Wang had boasted that his chain of to more than £9.2m.
Wanda City theme parks would “make Revenue overall is a third below the artificial pre-crisis
Disney’s China venture unprofitable”. peak. But branch closures and staff cuts have been more
The sale of the group’s leisure proper- acute. Lloyds, much to the anger of traditionalists, now has
ties is part of Wanda’s “asset-light” pol- only 1,900 branches, down from 3,300 for Lloyds/HBOS in
icy, a plan launched two years ago to sell 2006. It employs just 75,000 people, half the peak tally.
its real estate assets to investors with While other Analysts said debt levels at its listed lage over to the local government of time. Harbin is one of China’s more eco- There is no perfect way to measure productivity in
whom the company would share its developers are subsidiaries, which do publish audited Danzhai County, home mostly to mem- nomically depressed areas. banking. Like any service sector, it defies economists’
rental income. selling off assets, financial statements, were not unusu- bers of the Miao ethnic group. While other developers are selling off attempts to apply what is essentially a manufacturing con-
Several major Chinese developers, Sunac is ally high. Wanda declined to comment A host of local officials were on hand assets, Sunac is aggressively buying cept — of units produced per employee. Still, revenue per
such as China Vanke and Soho China, aggressively on the debt of the parent. at the opening to sing the praises of “The them in property and leisure. The cash- branch or per employee is a decent proxy.
have launched asset-light policies in the buying them in The group’s turnround on its leisure Chairman”, as Mr Wang is known to rich developer sank $2.4bn into rescu- Lloyds is not alone among banks, either. Peers have been
past two years to limit their exposure to property and assets was, however, curious given that those close to him. “Wang Jianlin is ing technology group LeEco, known for through a similar process. Over the past five years Wells
turbulent Chinese property leisure it had been using the properties as part responding to the call of the govern- video-streaming and its US autonomous Fargo, the biggest retail bank in the US, raised its per-
prices. Under the model, developers Mark Schiefelbein/AP
of an image rehabilitation blitz. ment, really helping the poor and help- car ventures, earlier this year. employee revenue 7 per cent to $328,000 and its per-
finance and manage the projects on Last month China’s banking regulator ing the most poverty-struck areas, Sunac’s chairman said in a Caixin branch revenue 15 per cent to $10.2m, although those
behalf of third-party investors but do confirmed it was examining banks’ which is why he also chose Danzhai,” interview that the acquisition would be numbers may be distorted somewhat by Wells’s own mis-
not own the land or buildings. exposure to Wanda and a handful of said the county’s propaganda chief, who fully funded by the company’s cash selling scandal last year.
Mr Wang said the deal would cut the other big business groups — HNA, Fosun declined to give her name. holdings of Rmb90bn, as of the end of There is probably much further to go in the process of
debt of Wanda’s recently delisted Dalian and Anbang — amid worries that their Wanda said the opening of the village, June, which come from the group’s cutting overheads relative to revenues, as online banking
Wanda Commercial Properties, and that big offshore deals could strain the bal- along with a vocational school and pov- strong property sales. usurps traditional branch banking.
the group planned to clear all its debts ance sheets of China’s domestic banks. erty alleviation fund, were nothing out “For Sunac, it’s about diversifying — One bank chief executive recently said he thought the
during the next three years. An analyst familiar with Wanda said of the ordinary for the company, and although their sales have been high, sector’s best-in-class cost-to-income ratio of about 40 per
“For Wanda, this deal is about reliev- the probe was “a signal from the govern- unconnected to recent political set- nearly all of it is from residential proper- cent could halve within five years if banks implement
ing the pressure of their debt,” said ment to stop the run of overseas acquisi- backs and regulatory scrutiny in China. ties, and they don’t have much in the strategies to reduce branch outlets and automate low-
Zhang Hongwei, chief analyst at prop- tions” rather than any genuine concern Mr Wang was also on hand to cut the way of commercial property such as skilled roles. Already the UK’s banks and asset managers
erty brokerage Tospur. about unsustainable debts. ribbon on the world’s largest indoor ski hotels,” said Mr Zhang of property bro- between them employ fewer than 500,000 people for the
The conglomerate, which has three Wanda has been on a publicity push in resort at a Wanda City project in Harbin kerage Tospur. first time since 1980, according to the ONS.
publicly listed subsidiaries but is itself recent weeks, pointing to its domestic at the end of June, an event that in a pre- Sunac has expanded in the past year, Additionally bolstered by the prospect of higher interest
privately owned, released half-year culture and recreation investments. vious era would have seen less fanfare. with its property sales up 121 per cent in rates — and therefore bigger profit margins — banks could
results on Thursday showing it was Just last week, Mr Wang was handing The 80-hectare project was “aided by 2016, its annual report states. But it has soon become an engine of productivity instead of a brake.
healthy, with 12 per cent year-on-year an oversized key to a Rmb1.5bn a cultural tourism investment of also embarked on debt-funded acquisi-
revenue growth. ($220m) ethnically themed tourism vil- Rmb20bn [$2.9bn],” said Wanda at the tions within China, largely in real estate.

Utilities Travel & leisure

Westar and Great Plains agree revised merger Just Eat in a stew over UK’s curry chefs shortage
JAMES FONTANELLA-KHAN — NEW YORK forward by Great Plains because it Under the new terms, Westar share- CONOR SULLIVAN — LONDON He spoke out as the British Takeaway restaurants surveyed for the BTC report
planned to borrow $8bn to fund the holders will receive a share in the new Campaign, a lobbying effort led by Just said they were experiencing skills short-
Westar Energy and Great Plains Online food-ordering platform Just Eat
acquisition of its larger rival. Both com- merged entity for each of their shares, Eat, published research about the eco- ages, particularly for chefs, front of
Energy, two big US electricity utilities has renewed warnings over a shortage
panies provide service in the state and while Great Plains stockholders will nomic contribution made by the restau- house staff and delivery drivers. Twen-
that scrapped a deal last year due to of curry chefs in the UK and called on
other parts of the US Midwest. receive 0.5981 shares of common stock rants in an effort to combat what Mr ty-nine per cent said they needed to
regulatory concerns, have agreed a new the government to loosen immigration
Regulators said then that the pur- in the new holding company for each of Corfield said were “negative connota- recruit skilled labour from outside the
all-shares merger that will create a rules and improve training.
chase price was “simply too high” and their shares. tions” about the industry. The research EU, while 37 per cent said they expected
company with a combined equity value
would eventually hurt customers Once the transaction is completed, Graham Corfield, Just Eat’s UK manag- found the public spent £10bn on takea- the UK’s decision to leave the EU would
of $14bn.
through higher rates needed to cover Westar shareholders will own approxi- ing director, said chef shortages for cui- ways last year. make it harder to recruit staff.
Under the new deal structure, Westar the debt. mately 52.5 per cent of the new sines such as Indian and Chinese was “a Just Eat works with about 28,000 res- The UK government maintains a list
shareholders will lose the 36 per cent In the new deal, Westar will in effect combined group, while Great Plains real problem now and unless we address taurants in the UK and has built a busi- of “shortage occupations” to inform visa
premium that Great Plains had offered acquire Great Plains at a small premium shareholders will own about 47.5 per it could get worse”. He said the restau- ness around linking them with custom- decisions. These jobs include chefs, but
to pay last year as part of a $60 cash and and will require no incremental debt, cent. rant sector included many “small fami- ers. But while demand for home- only for restaurants that do not provide
stock deal worth $12.2bn, including which avoids the problem raised by Great Plains hired Lazard and Bar- ly-run businesses who are often strug- delivered restaurant food is rising, the a takeaway service, and Mr Corfield
$3.6bn in debt. Kansas authorities. Westar shares cur- clays to help it get the new deal done. gling” and that were being forced to outlook for the restaurants themselves called for this to be changed. There are
But Kansas regulators refused to rently trade around $53 and Great Guggenheim Securities advised Westar. close “because they are finding it diffi- is less clear. fears immigration rules could be tight-
approve the original deal structure put Plains shares trade at $30. See Lex cult to get the staff”. More than a third of the 300 takeaway ened after the UK leaves the EU.
Tuesday 11 July 2017 ★ FINANCIAL TIMES 13


Chemical groups gear up for electric car race

Umicore, Johnson Matthey and BASF change direction from reducing exhaust emissions to powering battery vehicles
HENRY SANDERSON lysts said. In contrast, Johnson Matthey
AND MICHAEL POOLER Electric market has only a “modest position in battery
materials”, UBS said. BASF has also so
An industrial transformation is under How catalytic converters work far failed to establish itself in the NMC
way. The world leading companies that market, according to Liberum.
for decades have made catalysts that cut Exhaust gas from engine Substrate coated with catalyst Housing Gas to atmosphere 1 Exhaust gases from an internal In the case of Johnson Matthey, it pro-
harmful and toxic emissions in vehicle combustion engine containing duces another cathode variety called
exhausts are switching focus. Their aim: pollutants such as carbon monoxide lithium iron phosphate, or LFP, com-
to become significant players in power- and nitrogen oxide enter the converter mercially, but is scaling up in other
ing the electric cars of the future. materials.
The big three groups in the area — 2 The gases enter a honeycomb structure Although LFP does not have the range
Umicore of Belgium, UK-listed Johnson coated with catalysts of NMC batteries in terms of distance, it
Matthey and German chemicals group 1 2 3 is perceived as safer and has a better life-
BASF — are now preparing for the even- 3 The catalysts change the chemical cycle (how many times a battery can be
tual decline of the traditional internal structure of the gases, either removing charged without serious degradation).
combustion engines they help to filter. Companies such as them or converting them to harmless LFP batteries are bigger and found in
So far, Umicore is ahead in the race for Johnson Matthey apply gases such as nitrogen and oxygen heavy-duty vehicles.
market share. It already has a dominant the catalyst coatings to Critically, it is the ability to travel fur-
position making battery materials for the converters’ substrates ther with the more dense NMC batteries
portable electronics, which has helped that gives it the most potential for mass-
its shares more than double in price in How lithium-ion 2 market, light-duty passenger vehicles.
the past 18 months. batteries work Companies such 1 When a lithium-ion battery is “For us as an industry to transition
But the other two groups are chasing Load as Umicore make discharging, lithium ions flow from
hard, and are keen to catch up in the Separator
hope of providing materials for the lithi-
the cathodes for the anode to the cathode through the ‘The vast majority of our
lithium- ion batteries electrolyte and across the separator
um-ion batteries vital for the electric car Anode investment goes to battery
industry to properly take off.
“Today the vast majority of our 1 Cathode 2 Electrons also flow from anode to materials because of . . .
Lithium ions cathode, creating the current to power
investment goes to battery materials Electrolyte devices such as an electric motor demand for our products’
because of the formidable acceleration
that we see in demand for our products,” 3 When charging (not shown), the flows
Marc Grynberg, chief executive of Umi- are reversed and pivot more to EVs, we need to
core, told the Financial Times. develop more specific materials [with]
Mr Grynberg says he expects the bat- higher-energy density that address a lot
tery division to overtake the autocata- of the range issues, while through tech-
lyst division after 2020, but that nology we also address safety and life-
demand for catalysts up to that point time,” says Alan Nelson, chief technol-
will continue to remain strong as car- Lithium-ion battery market Platinum prices Chemical groups’ stock performance ogy officer at Johnson Matthey.
makers strive to meet tightening emis- Battery pack level ($bn) 35 LME, $ per troy ounce Share prices (rebased) However, success largely depends on
sions regulations. 1200 Johnson Matthey China, which accounted for more than
Portable 30 160
Although sales for catalytic convert- Automotive BASF 40 per cent of the electric cars sold
ers are holding up, markets are prepar- Others* 25 1100 Umicore worldwide last year. Its carmakers are
ing for the demise of diesel engines and 140 expected to shift from LFP towards
growth in electric cars, with platinum nickel-rich cathodes as China’s subsidy
prices falling sharply in the past year. 15 1000 120 policy for EVs has this year specified the
Platinum is a key component in cata- use of higher energy density batteries,
lytic converters. 10 which mean a bias towards NMC.
900 100
Indeed, the electric car market The worry for Umicore is that Chinese
appears to be close to a turning point, 5 competitors develop similar quality
with projections pointing to a potential 0 800 80 material. “This is a risk the market is
surge in sales in the next few years. 2005 2010 2012 2015 2020 2016 17 not pricing into Umicore [shares] at the
2016 17
According to the International Energy FT graphic Sources: Avicenne Energy; Thomson Reuters Datastream * Others include electric bike, industrial and medical lithium-ion batteries
moment,” warns Pieter Busscher, a fund
Agency, there are 2m electric cars on the manager at RobecoSAM.
road, making up only 0.2 per cent of
total passenger light-duty vehicles in
circulation. The IEA estimates the fig- For anyone in doubt about the poten- bal scale,” says Kenneth Lane, president
ure could reach 9m-20m by 2020 and tial scale of this market, then they of BASF’s catalysts division.
40m-70m by 2025. should take a look at Tesla’s vast “Giga- That followed Umicore’s announce-
A tipping point may come when the factory”, under construction in the ment in May of a €300m investment to
cost of EV ownership falls to the same Nevada desert. There, Panasonic will increase its output of components for
level as a conventional car, which UBS manufacture lithium cells for 500,000 lithium-ion batteries sixfold by 2020.
reckons could happen by 2019, although cars that the company expects to roll off Some investors and analysts think
other analysts predict 2025. “The explo- the production lines this decade. Umicore will be the overall winner from
sion of growth from that point [2019] on The chemical groups are fully aware the disruption of the car market as it has
will be fairly impressive for the cathode of the prospects in this market, stepping the lead in so-called nickel manganese
materials producers,” says Andrew Stott up preparations for the rise of electric cobalt batteries, or NMC, which are
an analyst at the investment bank. vehicles in recent months. likely to become the standard for elec-
The big three car catalyst groups hope In June, BASF said it would plough tric vehicles as they allow motorists to
to capture the growth in demand for €400m into building plants to produce drive for longer on a single charge. This
components used in rechargeable lithi- cathode materials in Europe, with raw explains the outperformance of the
um-ion cells manufactured by the likes materials supplied by the Russian met- group’s share price against its rivals in
of Samsung and LG, and are planning to als refiner Norilsk Nickel. the past year-and-a-half.
expand production of cathode materi- “[This] will result in a robust supply “We see Umicore as better able to
als, critical in increasing the amount of chain and enable BASF to expand its compensate for its future loss of com-
power a battery can deliver. production of battery materials on a glo- bustion engine technologies,” UBS ana-

Supply chain global warming emissions of before it ends up in a battery.

Question marks over comparable gasoline-powered vehicles. A growing amount of lithium is
But there has been little research on coming from hard rock in Australia,
environmental impact the environmental impact from the which is then sent to be processed in
mining of lithium, nickel and cobalt, China, a country that still relies on coal
The uptake of electric cars is close to a which are blended with manganese to for the majority of its electricity.
watershed moment, as battery costs form the battery cathode in most Umicore says it is scaling up its
continue to decline and the market electric vehicles. technology to recycle used lithium-ion
prepares to accelerate. But that is “As we move away from oil batteries, which could cut down the
drawing increased concern about the dependency, are we getting into energy footprint of mining battery raw
battery supply chain and its lithium dependency? And what could materials. The company says it expects
environmental impact. be the impact and risks with this, a large amount of batteries to come on
The C02 emissions from electric especially for automakers?” Enrico to the market around 2025.
vehicles will depend on the amount of Colombo, an associate analyst at David Deak, the chief technology
fossil fuels used in the electricity grid Sustainalytics in Frankfurt, said. officer at Lithium Americas, says
and when and where the cars are Extraction of lithium from brine that once recycling takes off, the
charged. beneath the deserts of Chile and manufacturing energy footprint, or
A 2015 report by the Union of Argentina mainly relies on the sunlight, land required to absorb CO2 emissions,
Concerned Scientists found that in the but also uses water from water-scarce and the cost of the battery could drop
US, on average, electric vehicles over regions. by well over 50 per cent.
their life produce less than half the The lithium is also further processed Henry Sanderson

Support services

Chief quits as Carillion warns on profit

CONOR SULLIVAN AND KATIE MARTIN from Mitie and Capita, which both said tive was under way and Mr Howson
there had been a slowdown in the would stay with the company for up to a
The chief executive of Carillion has
awarding of contracts following the UK’s year to help the transition, the group
stepped down as the outsourcing group
vote to leave the EU. said. The chairman Philip Green said
issued a profit warning and announced
The company announced that Rich- Carillion would miss its debt reduction
a strategic review, triggering a 35 per
ard Howson had stepped down as chief targets for 2017 and that “we have there-
cent fall in its share price.
executive after five years “with immedi- fore concluded that we must take imme-
The FTSE 250 group, which is the most ate effect” and was being replaced tem- diate action”.
shorted stock on the London exchange, porarily by Keith Cochrane, a non-exec- As well as speeding up measures to
said yesterday that full-year revenues utive director and former chief execu- cut debt, he said Carillion would be
and “overall performance” would be tive of Weir Group and Stagecoach. “undertaking a thorough review of the
lower than management’s expectations A search for a permanent chief execu- business and the capital structure”.
because of “difficult markets” and The company said that late payments
measures to cut borrowing. on construction contracts and a fall in
The group also said first-half operat- 35% £695m working capital due to contracts not
ing profits would be lower than Fall in Carillion’s Company’s net being replaced meant average net bor-
expected, without providing specific share price after borrowing in the rowing in the first half would be £695m,
guidance. warning and first half, against compared with £586.5m last year.
Carillion’s warning follows others report of review £586.5m last year See Lex
14 ★ FINANCIAL TIMES Tuesday 11 July 2017


Industrials Oil & gas

Norsk Hydro to take full control of Sapa Abu Dhabi

state oil group
Aluminium producer energy group. Aluminium has been one
of the best performing industrial metals
platform for growth, and provide
responsible operations and sustainable
NKr86.15 on the news while Hydro
shares traded up 0.74 per cent to
curb the domestic market. In an effort
to lower air pollution, China issued a
to float stakes
agrees deal for partner’s
share of joint venture
this year, with confidence rising that
Chinese authorities will tackle excess
solutions for the future low-carbon
economy,” said Svein Richard Brandt-
NKr49.07. Orkla’s share price is up 12.3
per cent for the year, while Hydro’s
directive this year to cut aluminium
production around Beijing during the
in services
supply from domestic producers.
Sapa is the world leader in extruded
aluminium products used in construc-
zaeg, Hydro’s chief executive.
Hydro said it planned to make
NKr200m ($24m) of synergies a year
shares are up 23.9 per cent.
Orkla has sold several subsidiaries in
recent years, including a specialist
winter. The authorities have also
announced plans to crack down on ille-
gal aluminium smelters.
Norwegian aluminium producer Norsk tion and carmaking, and was formed in from the deal, which is expected to com- chemicals division. “The [Sapa] sale is a Mr Brandtzaeg said Hydro’s expertise
Hydro has agreed to buy the 50 per cent 2013 as a joint venture between Hydro plete in the second half of the year pend- natural consequence of our strategy of in renewable energy was helping it win SIMEON KERR — DUBAI
stake in Sapa it did not already own, as and Orkla, the Norwegian consumer ing regulatory approval. becoming a focused branded consumer business from companies manufactur-
Abu Dhabi’s state-owned oil company
the European industry consolidates in goods supplier. It has 22,400 employees It said it would help finance it through goods company,” said Peter Ruzicka, ing automobiles for more environmen-
plans to float stakes in its services
response to a glut of supply from China. in 40 countries. The original agreement bond issues in Norway and interna- Orkla chief executive. tally conscious consumers. “Customers
businesses and expand investment
The cash deal, which gives Sapa an between the two companies stipulated tional markets this year. It intended to European companies have suffered in are concerned about reducing their car-
opportunities with foreign firms to
enterprise value of NKr27bn ($3.2bn), joint ownership for at least three years. keep its dividend policy of returning 40 recent years as aluminium production bon footprint overall — not only about
boost the Gulf emirate’s private sector
would make Hydro the second-largest “[Buying] Sapa will enable us to per cent of net income to shareholders. in China has surged. But there are signs lowering their emissions,” he said.
Norwegian company after Statoil, the assume global leadership, establish a Shares in Orkla rose 2.44 per cent to that Chinese authorities are trying to See Lex
Abu Dhabi National Oil Company
(Adnoc) said initial public offerings of
minority stakes in some services busi-
nesses with “attractive investment and
Media. Survival strategy growth profiles” would support private
sector growth in the UAE.
It added that the public would be
9% allowed to invest alongside Adnoc to
Forecast benefit from future growth.
decline in global Gulf energy producers are using pri-
newspaper vatisation to modernise the industry
advertising and raise money as the region faces a
revenues for 2017
sustained slump in prices that has put
budgets under pressure. Adnoc has shed
60% thousands of jobs in the past 18 months
Proportion of US to slash costs amid a broader fiscal
digital ad market squeeze in the UAE capital.
to be controlled
by Google and Saudi Aramco is planning an IPO
Facebook next year that it hopes will value the
largest oil producer at $2tn to kick-start
ambitious domestic economic reform
Other Gulf producers, including
Oman, Qatar and Kuwait, are also look-
ing at floating energy assets that have
long remained firmly under state
But Adnoc said there would be no IPO
of its holding company, which will
remain fully owned by the government
of Abu Dhabi.

‘Shifting trends create

a new energy landscape
News groups
where new rules of
are making engagement are required’
less from print
as digital fails Sultan Al Jaber, Adnoc’s chief execu-
to compensate tive, said the company also planned to
David R Frazier/Alamy
create co-investment opportunities
with partners across oil and gas produc-
tion, energy transportation, refinery
and petrochemicals output.

News publishers join forces to face digital challenge “Shifting global trends are creating a
new energy landscape where new rules
of engagement are required,” said Mr
Adnoc last year renewed oil conces-
revenue declines of more than 20 per Newspaper and magazine owners are Elkann, who is also head of the Agnelli with advertisers. With print advertising sions with overseas companies such as
US groups lobby Congress to cent in 2016. Digital subscription sales suffering steep declines in their print family and the owner of Fiat and Juven- revenues continuing to plummet — BP and brought in a Chinese consor-
allow ‘cartel’ to negotiate have offered some respite, but with dig- businesses. Magna Global, the media tus Football Club, said time was running Daily Mirror publisher Trinity Mirror tium. Other equity partners include
ital advertising failing to grow as quickly buying agency, forecasts global newspa- out to forge a workable relationship recently reported a 21 per cent fall in the Total of France and Inpex Corporation
with Facebook and Google as print advertising is declining, the per ad revenues will drop 9 per cent and with Google and Facebook. 26 weeks to July 2 — groups are taking of Japan.
industry is nearing a crisis point. magazine ad sales 10 per cent this year. “There will be a window of opportu- increasingly radical steps to slash costs Adnoc said it would explore new part-
It is not just revenue that publishers Last month, a group of international nity in the next 12 to 18 months to estab- and find ways of unlocking new reve- nerships including production conces-
SHANNON BOND — NEW YORK fear they are losing to the digital giants. publishers, including the Washington lish a relationship and find a way to nues. sions for companies that partner with
DAVID BOND — LONDON Many readers now access news and Post owner and Amazon founder Jeff make payments work. We must protect However, the joint sales initiative was Adnoc in other areas of the energy busi-
On both sides of the Atlantic, news pub- information through social media sites Bezos and John Elkann, chairman of what people buy and we must prevent dealt a blow earlier this year when Trin- ness and the development of a regional
lishers are starting to think about doing and search engines, meaning publishers Exor, the company that owns 43 per piracy,” he said. ity Mirror and DMGT, parent company drilling company.
the previously unthinkable: making no longer have a direct relationship with cent of The Economist, met in Turin to Newspaper groups in the UK have of the Daily Mail, pulled out of the Adnoc is also considering a new infra-
alliances with former foes and competi- readers or access to data about their discuss how newspapers should tackle been talking for months about forging a project. The remaining publishers, structure venture to bundle energy
tors to stop their readers and revenues audiences. the disruption from the tech groups. joint advertising sales house to give including Rupert Murdoch’s News UK, assets, such as oil pipelines and storage
being subsumed by the twin digital “News is valuable and it’s right to Speaking at the conference, Mr them a stronger bargaining position are still in talks. facilities. The company also said it
forces of Facebook and Google. expect it to be valued,” Mr Chavern said. Publishers are also responding by would offer more downstream invest-
The News Media Alliance, which rep- On the publishers’ agenda are negotia- tightening their belts and turning to dig- ment opportunities in refineries and
resents almost 2,000 publishers in tions over sharing advertising revenue Digital v print ad spending ital paywalls, as they search for ways to petrochemicals output.
North America, this week called on the and reader data, support for subscrip- US only ($bn) offset print losses that have yet to be Mr Jaber, who is also a UAE minister
US Congress to allow them to negotiate tion models and preserving the identity matched by digital gains. of state, said Adnoc would select new
collectively with digital distributors. of individual news brands on digital 50 The Wall Street Journal is scaling back partners on their ability to secure better
“It’s a difficult environment for any kind platforms. Facebook Forecast print production outside the US and access to global markets for Adnoc’s
of legislation right now, but we have to “You have two companies with these Google 40 ending distribution of its print edition in products, as well as their willingness to
try,” said David Chavern, chief executive massive online positions, yet individual Newspapers Europe, while The Guardian is shifting share technical expertise and develop
of the NMA. companies can’t get together to talk to 30 to a smaller print format. The Journal technologies.
It is unclear if Congress will grant an them,” he added. “It’s an imbalance that and the New York Times are offering “Expanding our partnership
exemption, which would effectively needs to be addressed.” 20 redundancy pay-offs to staff, while model . . . will enable us to accelerate
clear publishers to operate as a cartel. Google and Facebook are on track to Time Inc, owner of Fortune, People and our growth, increase revenue and
But such is the publishers’ desperation control 60 per cent of the US digital 10 Sports Illustrated magazines, recently improve integration across the Adnoc
that all options are being considered: advertising market this year, according eliminated 300 jobs and is looking to sell value chain,” said Mr Jaber.
print advertising revenues, once the to research group eMarketer, cementing 0 some titles. Meanwhile Bloomberg, the “It will also spur domestic economic
bedrock of the industry, have collapsed, their role as gatekeepers to the online 2008 09 10 11 12 13 14 15 16 17 18 19 US financial news and information com- growth as well as bring new
with big titles such as the New York revenues publishers need, as traditional pany, is putting 88-year-old Business- jobs and benefits to the UAE and its
Source: eMarketer
Times and Wall Street Journal hit by print sales erode. week magazine behind a paywall. citizens.”

Personal & household goods Industrials

Louis Vuitton watch connects elite travellers Siemens to sue over gas turbines in Crimea
HARRIET AGNEW — PARIS minal and gate information, reports of rants, hotels, historical landmarks and GUY CHAZAN — BERLIN Russia wants the plants to be fully ship project for the Kremlin-controlled
delays and the number of hours remain- tourist attractions in real time. operational by next March, when the gas monopoly Gazprom, which is set to
Louis Vuitton has launched a smart- Siemens, the German engineering
ing before landing. The other function, “The connected watch market is country marks the fourth anniversary start pumping natural gas from Russia
watch for the globetrotting elite that group, said it would pursue criminal
“City Guide”, lets users tap Louis Vuit- pretty competitive with traditional of the takeover of Crimea and votes in a to Europe in 2019.
looks indistinguishable from its iconic charges against Technopromexport
ton’s guides to seven international cities. watch makers competing with tech presidential election in which Vladimir Siemens said in a statement that it
mechanical Tambour watch but after it emerged that two of the gas tur-
The watch has a built-in geolocation players like Apple,” said Anne Le Putin is expected to run — and easily had received information “from reliable
includes the gadgetry associated with bines it sold the state-owned engineer-
function that indicates nearby restau- Borgne, a senior portfolio manager at win a fourth term. sources” that at least two of the four gas
wearable technology. ing company had been moved to Cri-
CPR Asset Management. “The luxury But Siemens’ intervention shows how turbines delivered to a project in the
mea in violation of EU sanctions.
Michael Burke, its chairman and chief players have a chance to differentiate on deeply the sanctions are biting, narrow- southern Russian town of Taman had
executive, said: “What’s distinctive is the design.” The EU blocked the supply of energy ing the options available to Russian been moved to Crimea, “against our
that it’s not technology informs aesthet- The Apple Watch is now bigger than technology to Crimea in the wake of companies reliant on western technol- will”.
ics, it’s the reverse: beauty informs tech- any Swiss watch brand bar Rolex, Russia’s annexation of the peninsula in ogy, particularly in the strategically vital It said the move constituted a “clear
nology. We don’t want it to look like a according to a report from UBS this 2014, which was seen as a breach of energy sector. breach” of Siemens’ contracts, which
connected object, we want it to look like month. The wider wearables market international law. Meanwhile, the volume of sanctions “forbid our customer from making
a mechanical watch.” now sells 30m-40m items annually, That has hindered Russian plans to has increased in recent weeks, with deliveries to Crimea”.
The new Tambour Horizon notifies its while the Swiss watches industry sells build two new power stations in the the US Senate last month approving The company said it would request
wearer of phone calls, text messages and about 28m, the report said. region, which has suffered from wide- measures that will punish Moscow that Russian authorities launch crimi-
emails, and includes two features aimed Louis Vuitton’s French rival Hermès spread electricity outages in recent further. nal charges against those responsible for
at the kind of upscale travellers that are collaborated with Apple on a connected months. The new sanctions, which m ust still the diversion, take legal action to halt
Louis Vuitton’s best customers. watch. And TAG Heuer, which is also The power plants, which are being be approved by the House of Represent- any further deliveries to Crimea and
A “My Flight” feature keeps departing Tambour Horizon looks traditional part of LVMH engineered a connected built by Technopromexport, were atives, could affect oil and gas pipeline have the turbines returned to their orig-
travellers informed of flight times, ter- but features luxury city guides watch in collaboration with Intel. designed to run on Siemens turbines. projects such as Nord Stream 2, a flag- inal destination in Taman.
Tuesday 11 July 2017 ★ FINANCIAL TIMES 15


Support services Banks

GLP auction hit by worries over China assets Russia central

bank starts
Warburg Pincus is one of ted a non-binding bid and may with-
draw if concerns about the China opera-
comes from a consortium led by Mr Mei
that includes Hopu but has a different
make GLP less attractive to would-be
make sure the business operates in a
consistent manner,” one person close to
winding up
only two bidders for the
Singapore-listed group
tion cannot be satisfied, three people
briefed on the offer said.
composition from the 2014 group.
Warburg and Mr Mei, who like all of
“There are additional reserved mat-
ters which would be triggered in the
GLP said.
Shareholders approved the circular
lender Yugra
The private equity firm’s concerns the bidders and potential bidders for event of a delisting or even the depar- by a 95 per cent margin.
HENNY SENDER — HONG KONG relate to provisions in the 2014 agree- GLP have signed non-disclosure agree- ture of Mr Mei,” said one investor who However, the investors who looked at
JEEVAN VASAGAR — SINGAPORE ment governing the sale of about one- ments, declined to comment. withdrew from the process. “These pro- buying GLP said that when they asked MAX SEDDON — MOSCOW
The auction of Global Logistics Proper- third of GLP’s China business to a group The sale of GLP, which has Singapore visions hinder the ability of a potential for more information as part of the auc- Russia’s central bank has begun to
ties, one of the world’s largest ware- including GLP’s chief executive Ming state investor GIC as its largest share- acquirer to realise the full value of the tion, they were given access to the full wind up Yugra, the country’s 33rd larg-
house operators, has run into trouble Mei and Beijing-based Hopu Invest- holder, has been dogged by allegations group.” shareholders’ agreement on the trans- est lender by assets, in what could
amid concerns over the future control of ment Management. that the process is flawed. Several other The circular that was given to share- action. They found Mr Mei’s group was become one of the country’s largest
the company’s China assets, considered The provision effectively gives that private equity groups declined to bid for holders in April 2014 before a vote on given additional veto power that was not banking collapses in recent years.
the jewel in its crown. group veto power over many of the GLP because they believed Mr Mei’s bid the China stake sale made clear that the specifically laid out in the circular.
Just two bidders submitted offers last things that GLP’s new owner might want made other submissions pointless. 2014 Hopu-led consortium was being A person close to GLP said these pow- The central bank said in a statement
week for the Singapore-listed company, to do with the China assets, the people Some of those investors now allege given a veto over certain decisions. ers were not included in the circular yesterday that it had placed Yugra
which is seeking to become the largest said. that some terms of the sale of the Chi- GLP declined to comment. “These because they were not considered under temporary administration for six
Asian private equity buyout of the year. The only other bid for GLP, which has nese stake were not fully disclosed to rights are standard rights for a minority “material facts that a reasonable share- months, which could lead to the bank’s
One of them, Warburg Pincus, submit- an enterprise value of about $15bn, GLP shareholders and that those terms shareholder to protect their interest to holder needed to know”. closure. Russia’s deposit insurance
agency will control Yugra while the cen-
tral bank investigates its “unstable”
financial position.
Shipping “This measure will allow the interests
Orient Overseas deal will make of the bank’s depositors and creditors to

Cosco push Cosco world’s third-biggest

shipping line
Top 10 shipping companies by market
be defended,” Yugra said in a statement.
Regulators have shut down more
than 300 banks since Elvira Nabiullina

underlines share (%) became governor of the central bank in

2013, promising to clean up the sector.
Yugra’s troubles show that not even

politically well-connected lenders are
16.4 APM-Maersk 16.4 safe from regulators. The bank is owned
by Alexei Khotin, Russia’s 95th richest

man according to Forbes, and a sponsor
of the Night Hockey League, where the
star player is President Vladimir Putin.

trade clout 14.7 14.7 Mr Khotin could not immediately be

Shipping Co reached for comment yesterday.
Yugra went from being the 272nd-
largest bank in Russia in 2012 to enter-
ing the top 35 three years later after
BEN BLAND — HONG KONG 11.2 CMA CGM Group 11.2 aggressively growing its business. Dur-
ing that time, the bank ramped up lend-
In May, Orient Overseas Container Line
ing to companies in real estate, con-
christened the biggest container ship
struction and energy, including assets
the OOCL Hong Kong — a bold state- 8.4 Cosco Shipping 11.6 in Mr Khotin and his father’s empire.
ment, given that the industry has been
Signs of problems at Yugra have
hit hard by overcapacity.
Hapag- emerged over the past year. The central
Two months on, and the controlling 7.2 Lloyd bank gave it 10 reprimands, ordering it
family is selling the seventh-biggest to form reserves, said Anna Orlenko,
container shipping line to China Cosco Evergreen head of the central bank’s oversight
5.0 Line
Shipping, its China state-owned rival. 5.0 department. “They did make a few
The $6.3bn cash deal symbolises Bei- 3.2 OOCL* steps to solve the problem but it clearly
jing’s ambitions to dominate trade, the 2.8 Yang Ming Marine 2.8 wasn’t enough,” said Alexander
deepening consolidation in a challenged Transport Danilov, an analyst at Fitch.
industry, and the eclipse of Hong Kong’s 2.7 Hamburg 2.7 In May, the bank’s auditor, BDO, said
role as China’s gateway. 2.6 NYK Line 2.6 Yugra had attempted to pass off a
The proposed acquisition of Hong Rbs29bn capital injection from share-
Kong-listed Orient Overseas (Interna- * OOCL is OOIL operating shipping subsidiary holders as operational revenue that
Source: Alphaliner
tional) Limited, OOCL’s parent, will would have given it a profit. By that
push Cosco from fourth to third in terms time, the central bank had banned
of container-shipping market share, The OOCL Hong an equity research house called Crucial Overseas because it is a much better- nese state-owned company underlines Yugra from accepting new deposits.
increasing pressure on its biggest com- Kong, the biggest Perspective in Singapore. run company,” says Ms Png. how Hong Kong is being eclipsed by the Yugra attracted at least Rbs1.88bn in
petitors, Denmark’s Maersk and Swit- container ship. “The other companies should be wor- The family of C.C. Tung, whose mainland, with the ports of Shanghai, the last year by giving new deposit-
zerland-based Mediterranean Shipping Cosco’s $6.3bn ried because Cosco is only a few percent- brother C.H. Tung was the first chief Shenzhen and Ningbo already shipping holders shares, allowing them to bypass
Company. deal for the line age points short of Maersk and MSC in executive of Hong Kong after the hando- more containers than Hong Kong. regulations, Ms Orlenko added.
The deal is the fourth big consolida- shows deepening market share, and in five years they ver in 1997, has agreed to sell its 68.7 per At a valuation of 1.4 times price to Valery Pozdyshev, a deputy central
tion announced in the past year and fol- consolidation in could be the largest player.” cent stake to Cosco and its junior part- book, Cosco is paying a 15 per cent pre- bank governor, said yesterday that reg-
lows the bankruptcy of Hanjin, the the sector and Shipping analysts say the proposed ner in the acquisition, Shanghai Inter- mium to the sector average, which ana- ulators suspected Yugra had submitted
Korean line, a trend one executive called highlights the acquisition, which was announced on national Port Group, triggering a gen- lysts say is a fair price given the possible false accounts to regulators for months,
“four weddings and a funeral”. eclipse of HK’s Sunday and requires regulatory eral offer. synergies for Cosco. as well as stripping assets and perform-
“The competitive environment, per- role as gateway to approval in the US and Europe as well as The completion of the deal will mark The Chinese group, which has been ing “manipulations” with client
sistent oversupply, and resulting pres- the mainland the backing of minority shareholders, the end of an illustrious history in ship- buying ports, including deals in accounts. Mr Pozdyshev said that
sures on freight rates have driven indus- Focke Strangmann/EPA
will not only boost Cosco’s share but ping for the family business, which was Spain and Greece, will need approval Rbs170bn of Yugra’s Rbs196.8bn in
try consolidation,” says Mariko enable it to improve its efficiency founded by C.C.’s father C.Y. from the Committee on Foreign Invest- assets was eligible for record insurance
Semetko, an analyst at Moody’s. thanks to Orient Overseas’ superior IT Setting the stage for the ambitions of ‘The other ment in America given Orient Overseas’ payments of up to Rbs1.4m ($20,000),
“We expect that this trend will and fleet management systems. his sons, in the early 1980s he operated US business. starting in two weeks.
continue.” Cosco, which was formed from the the longest-ever ship, the Seawise Giant.
companies Analysts say that there may be Alexei Nefedov, Yugra’s chief execu-
At a time when Chinese regulators are merger last year of two state- A person familiar with the transac- should be some opposition from rivals and tive, denied the bank had filed false
asking for a cooler, more rational owned predecessors, is set to become tion says that the Tung family came to politicians, amid a growing climate accounts, stripped assets, or violated
approach to foreign acquisitions, the the largest operator on the US-Asia recognise that it could not compete in a
worried . . . of protectionism. regulations. “We are not losing faith and
deal — which is being funded by a bridg- route, while taking advantage of Orient climate of overcapacity and consolida- in five years But they expect regulators to we are making every effort to ensure
ing loan from the Bank of China — Overseas’ foothold in the niche tion, even though freight rates started to approve the deal, given that Cosco and that these issues are settled with the
underlines Beijing’s desire to see Cosco refrigerated container business and get- recover last year.
they could Orient Overseas were part of one of the central bank in the near future,” he said.
become a dominant participant in ship- ting control of its state-of-the-art, auto- “The current situation was just not be the main shipping alliances and the Mr Khotin, he said, “plans to support
ping and port operations. mated container terminal in Long sustainable, then this deal came along at enlarged Cosco will still only be the the bank until its full financial recovery
“This is a very significant acquisition Beach, California. the right valuation,” he says.
largest third-biggest operator. — the main thing is that we be allowed
for Cosco,” says Corrine Png, who runs “Cosco can learn a lot from Orient The sale of Orient Overseas to a Chi- player’ See Lex to do this”.

Financial services Technology Pharmaceuticals

Dublin emerges as top choice Thaw begins in funding freeze Regulator’s move lets buyout
for post-Brexit bases in EU for European tech start-ups groups raise offer for Stada
LAURA NOONAN — NEW YORK favourite with wealth and asset manag- ALIYA RAM — LONDON Marc Patouillaud, co-managing partner JAVIER ESPINOZA The buyout groups will now be able to
Dublin is the most popular destination ers, six of which have named it as a Partech Ventures, the France-based at Partech, said the fund differed from tender a renewed voluntary public offer
among the leading financial services Brexit option. Frankfurt is expected to investment firm, has closed a €400m others of its kind because it would invest Germany’s financial regulator, BaFin, for Stada without having to adhere to
companies which have already made win most of the investment banks, fund to invest in European and US tech- in Europe and the US. Two-thirds of its has cleared the way for Bain Capital the one-year exclusion period.
statements on where they plan to set up though EY said that so far Dublin and nology start-ups amid signs that the investments will focus on European and Cinven to return with a fresh and “We believe that enabling Bain Capi-
their post-Brexit EU bases, a report Frankfurt were tied for investment funding freeze after the UK’s vote to start-ups developing emerging technol- higher offer for Stada, the generics tal and Cinven to submit an improved
from EY shows. bank business, followed by Paris. leave the EU is beginning to thaw. ogies such as virtual reality, while the drugmaker, in what is set to be Europe’s offer is in the best interest of the com-
Mr Ali said the number of companies rest will go into companies in Silicon largest buyout in four years. pany and our shareholders,” said Engel-
Banks, insurers, asset managers and that had spoken publicly of plans to The fund is the seventh of its kind from Valley, where Partech has an office. bert Coster Tjeenk Willink, chairman of
funds are seeking new EU homes move operations from London had risen Partech and is being backed by the “It is very important to select the best The private equity consortium bidding Stada’s executive board.
because they fear Brexit will mean the only slightly since March, when 53 had European Investment Fund, a public- deal by benchmarking on a worldwide for the maker of copycat drugs such as Stada’s shares rose 1.3 per cent in
loss of the “passport” which allows them made statements — of those, 15 did not private partnership in the EU, and Bpi- basis rather than just focusing on a sin- generic Viagra has secured an exemp- afternoon trading to €65.38.
to conduct business across Europe from say where they would go. france, France’s sovereign wealth fund. gle continent or country,” he said. tion from a one-year exclusion period, Bain and Cinven had received accept-
their London bases. “The difference three months on from It has also attracted corporate invest- European tech funding slowed meaning it can submit a renewed volun- ances from 65.52 per cent of sharehold-
Frankfurt has garnered recent head- the triggering of Article 50 [on March ment from the French lottery, Accen- sharply after the vote for Brexit in June tary public takeover approach. ers for their original offer, just below
lines for winning business, with Japa- 29] is that we are seeing major financial ture, Cisco Systems, Nokia, Adecco, last year. Start-ups that already lag The approval of an exemption came their 67.5 per cent target.
nese banks Daiwa and Nomura saying brands put their contingency plans into L’Oréal and Unibail-Rodamco. Jean- behind counterparts in the US and Asia as Bain and Cinven announced they had The initial bid failed due to factors
they would set up EU bases there. action,” he said. “This process will only in attracting early-stage investment saw increased their bid by €0.25 to €66.25 a including some hedge funds refusing to
But the EY study, based on statements accelerate as firms finalise their submis- venture capital activity drop by a third share, €16m above the first offer and tender their shares in the hope of forc-
from 222 of London’s biggest financial sions to the regulators on their Brexit in the third quarter, according to Dow valuing the group at €4.1bn, according ing the bidders to pay a higher price.
services companies, said that so far 19 plans.” Jones VentureSource. to the company. Stada, whose chief Bain and Cinven have received irrevo-
had spoken of a move to Dublin, while Executives say they will have to make This year, a number of large venture executive and head of finance stepped cable acceptances from those investors,
18 have mentioned Frankfurt. Luxem- decisions before the UK agrees its exit capital groups have started multimil- down with immediate effect last week, including some of the funds that held
bourg comes third, with 11 mentions. deal, because the plans can often lion-dollar funds focused on the sector. said it supported the revised offer. back from the previous offer.
“The variety of locations being involve lengthy regulatory processes. In February, Atomico closed a $765m The acceptance threshold for the new Bain and Cinven fought off bids from
announced highlights that no one Euro- The leading EU cities have all begun European tech fund to help new busi- bid has been lowered to 63 per cent from another private equity consortium
pean centre is emerging as a compelling charm offensives to win post-Brexit nesses expand. an initial 75 per cent bar, and the accept- comprising Advent International and
alternative to London,” said Omar Ali, business, with Frankfurt promising to However, Brexit continues to cast a ance period has been cut to four weeks. Permira. They are “unlikely” to return
EY’s UK financial services leader. change labour laws to exempt “risk tak- pall with venture capitalists concerned Late last month, Bain and Cinven’s with a fresh bid because of the hurdles it
Insurers, including Legal & General ers”, Paris stressing its quality of life and about the movement of skilled entre- initial bid failed after they were unable has to overcome, a person familiar with
and Standard Life, are leading the Dublin boasting of its deep pool of Eng- L’Oréal, the cosmetics company, is preneurs, access to the single market to secure sufficient backing from Stada the process said.
charge to Dublin, while Luxembourg is a lish-speaking workers. among investors in the Partech fund and regulations for UK-based start-ups. shareholders. See Lex
16 FINANCIAL TIMES Tuesday 11 July 2017



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

-0.155% -0.97% -0.31%

No change No change
0.17% 0.29% 0.07% 0.26% 0.42% 0.76% 0.63% 0.33% 0.113%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
Jun 11 - - Index All World Jun 11 - Jul 10 Index All World Jun 11 - Jul 10 Index All World Jun 11 - Jul 10 Index All World Jun 11 - Jul 10 Index All World Jun 11 - Jul 10 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
15,423.09 12,815.72 20,080.98 2,381.69 2,382.10
2,433.79 2,429.41 7,449.98 20,013.26
15,105.09 7,350.92 12,437.46
Day 0.17% Month -0.10% Year 14.06% Day 0.52% Month -2.38% Year 5.92% Day 0.26% Month -2.06% Year 11.86% Day 0.39% Month -2.95% Year 29.17% Day 0.76% Month 0.34% Year 32.93% Day 0.09% Month 0.02% Year 21.34%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
6,321.76 1,534.39 10,978.30 26,030.29 3,246.35
6,170.70 49,081.73 1,500.77 25,500.06
Day 0.29% Month -0.61% Year 24.48% Day 0.90% Month 2.94% Year 10.45% Day 0.42% Month -2.19% Year 15.80% Day 0.20% Month -4.27% Year 28.39% Day 0.63% Month -2.04% Year 24.00% Day 0.54% Month -0.24% Year 14.03%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
62,755.58 62,814.90 21,122.42 21,190.67 3,364.53 31,715.64
21,430.27 5,299.71
21,182.53 3,307.72 31,213.36
Day 0.07% Month 0.74% Year 18.09% Day 0.79% Month 0.98% Year 18.21% Day 0.40% Month -2.53% Year 23.26% Day 0.84% Month 0.32% Year 31.89% Day 0.00% Month 1.72% Year 7.51% Day 1.13% Month 1.45% Year 16.92%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 22069.05 22027.84 Cyprus
CSE M&P Gen 76.20 76.96 Italy FTSE Italia All-Share 23371.29 23184.21 Philippines Manila Comp 7837.47 7889.33 Taiwan Weighted Pr 10289.91 10297.25 Cross-Border DJ Global Titans ($) 273.55 272.59
Australia All Ordinaries 5762.90 5743.90 Czech Republic
PX 999.00 992.18 FTSE Italia Mid Cap 39350.91 39094.77 Poland Wig 60803.62 60707.52 Thailand Bangkok SET 1569.44 1569.64 Euro Stoxx 50 (Eur) 3478.81 3463.84
S&P/ASX 200 5724.40 5703.60 OMXC Copenahgen 20
Denmark 995.05 989.05 FTSE MIB 21190.67 21015.10 Portugal PSI 20 5171.12 5153.96 Turkey BIST 100 100084.37 100627.01 Euronext 100 ID 993.64 989.63
S&P/ASX 200 Res 3354.30 3361.10 EgyptEGX 30 13342.09 13369.88 Japan 2nd Section 6179.83 6145.27 PSI General 2831.68 2817.94 UAE Abu Dhabi General Index 4410.50 4396.35 FTSE 4Good Global ($) 6072.39 6052.41
Austria ATX 3152.51 3124.61 Estonia
OMX Tallinn 1168.27 1171.03 Nikkei 225 20080.98 19929.09 Romania BET Index 8117.09 8044.79 UK FT 30 3204.80 3196.40 FTSE All World 307.60 306.60
Belgium BEL 20 3845.08 3835.82 Finland
OMX Helsinki General 9751.12 9694.55 S&P Topix 150 1308.33 1302.20 Russia Micex Index 1924.22 1912.48 FTSE 100 7370.03 7350.92 FTSE E300 1500.77 1494.42
BEL Mid 6394.96 6380.18 France
CAC 40 5165.64 5145.15 Topix 1615.48 1607.06 RTX 1005.42 995.24 FTSE 4Good UK 6556.67 6541.87 FTSE Eurotop 100 2939.12 2927.48
Brazil Bovespa 62814.90 62322.40 SBF 120 4117.62 4101.33 Jordan Amman SE 2183.49 2176.10 Saudi-Arabia TADAWUL All Share Index 7203.99 7266.43 FTSE All Share 4027.69 4020.82 FTSE Global 100 ($) 1507.68 1501.39
Canada S&P/TSX 60 891.06 Germany
886.36 M-DAX 24452.30 24431.27 Kenya NSE 20 3604.06 3580.52 Singapore FTSE Straits Times 3246.35 3229.01 FTSE techMARK 100 4494.58 4509.53 FTSE Gold Min ($) 1389.33 1418.53
S&P/TSX Comp 15105.09 15027.16 TecDAX 2188.25 2173.22 Kuwait KSX Market Index 6723.57 6680.13 Slovakia SAX 334.51 334.51 USA DJ Composite 7440.82 7435.24 FTSE Latibex Top (Eur) 3940.60 3941.60
S&P/TSX Div Met & Min 643.59 655.45 XETRA Dax 12437.46 12388.68 Latvia OMX Riga 980.63 968.94 Slovenia SBI TOP 801.45 801.45 DJ Industrial 21430.27 21414.34 FTSE Multinationals ($) 1758.42 1752.55
Chile IGPA Gen 24499.51 24286.47
Greece Athens Gen 843.83 837.43 Lithuania OMX Vilnius 601.79 602.94 South Africa FTSE/JSE All Share 52187.92 51900.26 DJ Transport 9685.45 9694.94 FTSE World ($) 544.87 543.12
China FTSE A200 9423.08 9420.68 FTSE/ASE 20 2182.42 2169.84 Luxembourg LuxX 1663.81 1656.64 FTSE/JSE Res 20 31739.74 31381.51 DJ Utilities 704.77 702.04 FTSEurofirst 100 (Eur) 4224.44 4208.71
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 25500.06 25340.85 Malaysia FTSE Bursa KLCI 1757.13 1759.93 FTSE/JSE Top 40 45976.56 45670.49 Nasdaq 100 5684.99 5656.47 FTSEurofirst 80 (Eur) 4818.00 4798.04
Shanghai A 3364.53 3364.35 HS China Enterprise 10214.58 10251.83 Mexico IPC 50510.15 50059.02 South Korea Kospi 2382.10 2379.87 Nasdaq Cmp 6170.70 6153.08 MSCI ACWI Fr ($) 463.96 463.25
Shanghai B 330.08 330.74 HSCC Red Chip 3955.55 3954.17 Morocco MASI 12354.35 12125.68 Kospi 200 311.46 310.66 NYSE Comp 11766.29 11752.98 MSCI All World ($) 1913.18 1909.01
Shanghai Comp 3212.63 3212.48
Hungary Bux 35724.92 35503.69 Netherlands AEX 512.05 509.91 Spain IBEX 35 10509.50 10488.80 S&P 500 2429.41 2425.18 MSCI Europe (Eur) 1561.36 1560.98
Shenzhen A 1992.78 2006.19
India BSE Sensex 31715.64 31360.63 AEX All Share 780.48 777.18 Sri Lanka CSE All Share 6758.24 6737.50 Wilshire 5000 25249.17 25219.16 MSCI Pacific ($) 2538.13 2561.37
Shenzhen B 1157.50 1156.63 Nifty 500 8556.95 8479.45 New Zealand NZX 50 7583.95 7622.13 Sweden OMX Stockholm 30 1624.81 1617.00 Venezuela IBC 123451.19 123749.70 S&P Euro (Eur) 1602.16 1594.90
Colombia COLCAP 1470.32 1481.32
Indonesia Jakarta Comp 5771.51 5814.79 Nigeria SE All Share 32459.17 32354.78 OMX Stockholm AS 581.48 578.99 Vietnam VNI 766.56 775.73 S&P Europe 350 (Eur) 1543.60 1536.95
Croatia CROBEX 1871.97 1871.97
Ireland ISEQ Overall 6922.24 6875.21 Norway Oslo All Share 768.54 762.61 Switzerland SMI Index 8943.84 8886.95 S&P Global 1200 ($) 2137.08 2131.37
Israel Tel Aviv 100 12.89 12.93 Pakistan KSE 100 46273.81 45222.15 Stoxx 50 (Eur) 3130.77 3116.31
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see A fuller version of this table is available on the research data archive.


AMERICA LONDON EURO MARKETS TOKYO Jul 10 %Chg %Chg Jul 10 %Chg %Chg Jul 10 %Chg %Chg Jul 10 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Tesla 26.3 316.73 3.51 Hsbc Holdings 184.9 738.30 11.70 Nestle N 295.5 75.29 0.59 Toyota Motor 468.1 6187.00 30.00 Worldpay 373.00 33.3 57.8 Computacenter 875.00 10.9 11.6 Cape 262.50 44.6 81.3 Nonlife Insurance 3144.37 2.6 14.3
Nvidia 19.1 151.58 4.82 Rio Tinto 163.6 3398.50 -12.29 Santander 280.9 5.81 0.00 Softbank . 459.8 8928.00 -6.00 Barratt Developments 591.50 5.2 27.7 Virgin Money Holdings (uk) 297.10 10.1 -1.7 Novae 703.50 23.4 2.8 Food & Drug Retailers 2855.93 1.4 -7.3 17.6 996.70 17.94 Shire 132.2 4186.50 -115.75 Roche Gs 251.9 219.07 -0.64 Mitsubishi Ufj Fin,. 387.5 749.30 -4.70 Persimmon 2375.00 4.8 33.7 Intermediate Capital 906.50 6.6 29.8 Oxford Biomedica 10.75 17.8 160.6 Aerospace & Defense 5327.98 1.4 15.0
Apple 11.4 144.85 0.67 British American Tobacco 131.5 5210.00 -14.77 Novartis N 240.5 72.20 0.59 Kddi 326.7 2909.00 -80.50 Easyjet 1414.00 4.8 41.5 Thomas Cook 94.85 5.9 7.5 Fenner 336.00 15.3 41.8 Banks 4513.54 1.1 9.2
Facebook 10.7 153.38 1.94 Bae Systems 116.7 630.00 3.74 Allianz Se Na O.n. 232.9 180.00 1.25 Canon . 266.7 3748.00 96.00 Int Consolidated Airlines S.a. 633.50 4.4 43.8 Beazley 512.50 5.3 32.7 Empiric Student Property 111.50 14.0 19.9 General Financial 10507.33 1.1 12.9
Costco Wholesale 7.0 151.85 -2.26 Unilever 104.0 4204.50 20.75 Intesa Sanpaolo 227.0 2.86 0.02 Sumitomo Mitsui Fin,. 253.6 4373.00 1.00 Rolls-royce Holdings 932.00 4.2 39.8 Aveva 2022.00 4.9 9.0 Mj Gleeson 678.00 8.9 26.2 Mining 15321.82 1.0 3.6
Alphabet 6.2 947.36 6.55 Bhp Billiton 102.9 1263.50 -6.55 Unicredit 202.1 17.52 0.02 Sony 235.3 4318.00 73.00 Rsa Insurance 643.00 3.6 9.0 Berkeley Holdings (the) 3330.00 4.7 18.7 Games Workshop 1290.00 7.5 80.8 Industrial Engineering 11396.52 0.9 11.1
Alphabet 5.2 925.09 6.50 Prudential 101.4 1798.50 3.93 Unilever Dr 192.0 48.46 0.40 Tokyo Electron 214.6 15580.00 350.00 Standard Chartered 812.40 3.5 22.5 Countryside Properties 356.60 4.6 43.8 Puretech Health 131.63 7.1 13.1 Food Producers 8363.29 0.8 4.1
Microsoft 4.7 69.97 0.51 Royal Dutch Shell 100.0 2059.00 10.07 Total 182.5 42.76 0.30 Mizuho Fin,. 204.3 204.60 -1.30 London Stock Exchange 3731.00 3.1 28.3 Wizz Air Holdings 2564.00 4.5 40.5 Xaar 399.25 6.5 -0.5 Household Goods 18543.65 0.6 15.7
Bank Of America 4.7 24.77 -0.07 Wpp 93.1 1567.00 4.47 Telefonica 172.9 9.01 -0.04 Fuji Heavy Industries 182.9 4118.00 32.00 Taylor Wimpey 180.00 2.9 17.2 Lancashire Holdings 736.00 4.3 5.9 Huntsworth 64.50 5.5 70.8 Mobile Telecommunications 4942.73 0.6 9.4
Tesco 171.05 2.4 -17.2 Just Eat 673.50 3.7 15.8 Foxtons 96.25 5.1 -3.9 Beverages 18366.65 0.6 9.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Schroders 3225.00 2.3 6.6 Bellway 3060.00 3.5 23.5 Treatt 468.00 4.3 87.3 Real Estate Investment Trusts 2936.33 0.6 0.9
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Frontier Communications 16.21 15.15 1429.69 Worldpay 373.00 57.56 15.62 A.p. M__ller - M__rsk B A/s 1842.23 69.92 3.95 Mitsui O.s.k.lines, 356.00 17.00 5.01 Convatec 304.20 -5.1 29.7 Carillion 117.10 -34.4 -47.9 Ophir Energy 74.50 -11.0 -22.1 Health Care Equip.& Services 8020.09 -2.4 9.5
Liberty Global 24.30 2.54 11.67 Sophos 453.70 15.18 3.37 A.p. M__ller - M__rsk A A/s 1738.69 63.20 3.77 Taiyo Yuden Co., 1827.00 72.00 4.10 Johnson Matthey 2775.00 -4.2 -12.8 Nostrum Oil & Gas 444.00 -12.3 15.6 Hss Hire 56.50 -9.5 -32.3 Chemicals 12648.94 -2.2 2.9
Liberty Global 24.73 2.43 10.90 hcape 776.50 17.53 2.31 Alfa Laval Ab 18.65 0.56 3.11 Tosoh 1219.00 41.00 3.48 Fresnillo 1430.00 -3.6 15.7 Hochschild Mining 254.80 -6.8 16.8 Premier Oil 47.50 -6.9 -35.8 Oil Equipment & Services 11780.23 -2.1 -27.7
Mosaic (the) 24.04 1.44 6.37 Jpmorgan Indian Investment Trust 740.50 15.30 2.12 Cnh Industrial 10.37 0.26 2.57 Nichirei 3230.00 105.00 3.36 Next 3693.00 -3.3 -24.5 Aggreko 851.00 -6.7 -7.3 Hollywood Bowl 159.75 -6.2 -4.4 Oil & Gas Producers 7491.40 -1.7 -11.8
Cf Industries Holdings 29.27 1.38 4.95 Wizz Air Holdings 2564.00 45.90 1.83 Arcelormittal Sa 20.55 0.47 2.34 Konami 6160.00 200.00 3.36 Wpp 1567.00 -2.5 -13.4 Balfour Beatty 257.70 -6.2 -5.9 Connect 106.00 -6.0 -30.6 Fixed Line Telecommunication 3332.71 -1.3 -20.3
Anglo American 1068.00 -2.3 -10.3 Essentra 540.50 -6.0 17.5 Sportech 100.50 -5.9 14.4 Media 7569.98 -1.2 -3.5
Downs Downs Downs Downs
Burberry 1620.00 -2.3 8.1 Domino's Pizza 266.50 -6.0 -26.1 Nanoco 39.25 -5.9 -11.7 Gas Water & Multiutilities 5790.36 -1.2 -4.2
Best Buy Co 53.98 -3.89 -6.72 Carillion 117.10 -69.04 -35.94 Seadrill 0.30 -0.01 -3.70 Kddi 2909.00 -80.50 -2.69
National Grid 931.10 -2.1 -10.1 Pershing Square Holdings Ltd 1108.00 -5.2 - Speedy Hire 55.00 -5.8 7.6 Automobiles & Parts 7643.14 -1.0 -1.7
Gap 21.28 -1.36 -6.01 Dunelm 581.50 -37.28 -6.01 Oci 18.77 -0.45 -2.32 Toshiba 255.60 -6.30 -2.41
Whitbread 3814.00 -2.1 1.7 Electra Private Equity 1668.00 -5.2 -65.3 Porvair 522.50 -5.8 19.1 Industrial Metals 2552.27 -0.9 13.3
Macy's 21.46 -1.22 -5.38 Aldermore 216.00 -8.90 -3.96 Telecom Italia R 0.63 -0.01 -2.32 Dentsu . 5130.00 -110.00 -2.10
Mediclinic Int 721.00 -2.1 -6.3 Petrofac 437.20 -5.1 -49.7 Fuller, Smith & Turner 1045.00 -5.6 4.6 Pharmaceuticals & Biotech. 13950.41 -0.8 3.7
Kohl's 36.33 -1.91 -5.00 Sanne 640.50 -25.50 -3.83 Hennes & Mauritz Ab , H & M Ser. B 21.71 -0.44 -1.97 Nippon Telegraph And Telephone 5230.00 -64.00 -1.21
Ashtead 1567.00 -2.1 -1.8 Ocado 276.10 -4.4 4.7 Up Global Sourcing Holdings 193.50 -5.3 - Tobacco 57177.32 -0.6 8.2
Autonation 40.02 -1.78 -4.26 Euromoney Institutional Investor 1076.00 -36.14 -3.26 Telecom Italia 0.79 -0.01 -1.80 Ntt Docomo,. 2622.50 -27.50 -1.04
Smith & Nephew 1303.00 -1.8 7.1 Ashmore 337.00 -4.3 18.9 Findel 195.00 -5.0 1.6 Industrial Transportation 3061.28 -0.5 0.3
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jul 10 Currency Mid Change Mid Change Mid Change Jul 10 Currency Mid Change Mid Change Mid Change Jul 10 Currency Mid Change Mid Change Mid Change Jul 10 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 16.9850 0.0100 19.3433 0.0072 21.8479 -0.0175 Indonesia Indonesian Rupiah 13397.5000 -5.0000 15257.7414 -8.9913 17233.2975 -30.4056 Poland Polish Zloty 3.7191 -0.0025 4.2355 -0.0037 4.7839 -0.0098 ..Three Month 0.7778 0.0011 0.8852 0.0010 - -
Australia Australian Dollar 1.3167 0.0016 1.4996 0.0015 1.6937 -0.0002 Israel Israeli Shekel 3.5518 0.0144 4.0449 0.0155 4.5686 0.0121 Romania Romanian Leu 4.0133 -0.0039 4.5705 -0.0054 5.1623 -0.0122 ..One Year 0.7789 0.0011 0.8846 0.0011 - -
Bahrain Bahrainin Dinar 0.3773 - 0.4297 -0.0001 0.4853 -0.0007 Japan Japanese Yen 114.1950 0.2050 130.0508 0.2054 146.8897 0.0597 Russia Russian Ruble 60.2688 -0.2750 68.6370 -0.3280 77.5241 -0.4620 United States United States Dollar - - 1.1388 -0.0002 1.2863 -0.0018
Bolivia Bolivian Boliviano 6.9100 - 7.8694 -0.0017 8.8884 -0.0124 ..One Month 114.1948 0.2047 130.0508 0.2054 146.8897 0.0596 Saudi Arabia Saudi Riyal 3.7501 0.0000 4.2709 -0.0010 4.8238 -0.0068 ..One Month - - 1.1387 -0.1493 1.2864 -0.0018
Brazil Brazilian Real 3.2623 -0.0313 3.7153 -0.0365 4.1963 -0.0462 ..Three Month 114.1945 0.2040 130.0509 0.2055 146.8895 0.0593 Singapore Singapore Dollar 1.3853 0.0034 1.5776 0.0035 1.7819 0.0019 ..Three Month - - 1.1383 -0.1492 1.2867 -0.0018
Canada Canadian Dollar 1.2877 -0.0014 1.4664 -0.0019 1.6563 -0.0041 ..One Year 114.1929 0.2007 130.0510 0.2058 146.8897 0.0586 South Africa South African Rand 13.4388 0.0063 15.3047 0.0038 17.2863 -0.0160 ..One Year - - 1.1365 -0.1492 1.2878 -0.0018
Chile Chilean Peso 666.9750 0.0350 759.5834 -0.1245 857.9339 -1.1484 Kenya Kenyan Shilling 103.9500 0.0500 118.3833 0.0313 133.7115 -0.1216 South Korea South Korean Won 1149.4000 -4.9000 1308.9924 -5.8650 1478.4803 -8.3684 Venezuela Venezuelan Bolivar Fuerte 10.0028 0.0328 11.3916 0.0348 12.8666 0.0243
China Chinese Yuan 6.8017 0.0018 7.7461 0.0004 8.7491 -0.0099 Kuwait Kuwaiti Dinar 0.3033 0.0001 0.3454 0.0000 0.3901 -0.0004 Sweden Swedish Krona 8.4392 0.0041 9.6110 0.0025 10.8554 -0.0099 Vietnam Vietnamese Dong 22750.0000 5.5000 25908.8165 0.6712 29263.4678 -33.6933
Colombia Colombian Peso 3065.3500 -27.6550 3490.9692 -32.2578 3942.9782 -41.1077 Malaysia Malaysian Ringgit 4.2965 -0.0020 4.8931 -0.0033 5.5266 -0.0103 Switzerland Swiss Franc 0.9668 0.0023 1.1010 0.0024 1.2436 0.0012 European Union Euro 0.8781 0.0002 - - 1.1295 -0.0013
Costa Rica Costa Rican Colon 572.0650 0.1900 651.4953 0.0754 735.8507 -0.7789 Mexico Mexican Peson 17.9679 -0.1951 20.4627 -0.2267 23.1122 -0.2835 Taiwan New Taiwan Dollar 30.5680 -0.0320 34.8123 -0.0440 39.3198 -0.0959 ..One Month 0.8779 0.0002 - - 1.1294 -0.0013
Czech Republic Czech Koruna 22.9021 0.0147 26.0820 0.0111 29.4590 -0.0220 New Zealand New Zealand Dollar 1.3761 0.0009 1.5671 0.0007 1.7701 -0.0013 Thailand Thai Baht 34.0960 - 38.8302 -0.0084 43.8579 -0.0610 ..Three Month 0.8775 0.0002 - - 1.1293 -0.0013
Denmark Danish Krone 6.5300 0.0016 7.4366 0.0003 8.3995 -0.0096 Nigeria Nigerian Naira 314.7500 - 358.4525 -0.0776 404.8648 -0.5632 Tunisia Tunisian Dinar 2.4397 0.0046 2.7784 0.0046 3.1382 0.0015 ..One Year 0.8757 0.0002 - - 1.1287 -0.0013
Egypt Egyptian Pound 17.8767 0.0297 20.3589 0.0294 22.9949 0.0063 Norway Norwegian Krone 8.3435 -0.0197 9.5020 -0.0245 10.7323 -0.0403 Turkey Turkish Lira 3.6121 -0.0171 4.1136 -0.0204 4.6462 -0.0285
Hong Kong Hong Kong Dollar 7.8131 0.0016 8.8979 -0.0001 10.0500 -0.0119 Pakistan Pakistani Rupee 105.2000 -0.6750 119.8069 -0.7948 135.3194 -1.0577 United Arab Emirates UAE Dirham 3.6730 - 4.1830 -0.0009 4.7246 -0.0066
Hungary Hungarian Forint 270.4878 -0.0065 308.0446 -0.0740 347.9301 -0.4923 Peru Peruvian Nuevo Sol 3.2565 0.0050 3.7087 0.0049 4.1889 0.0006 United Kingdom Pound Sterling 0.7774 0.0011 0.8854 0.0010 - -
India Indian Rupee 64.5338 -0.0675 73.4942 -0.0928 83.0101 -0.2024 Philippines Philippine Peso 50.6900 0.1100 57.7282 0.1128 65.2029 0.0510 ..One Month 0.7776 0.0011 0.8853 0.0010 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at
Produced in conjunction with the Institute and Faculty of Actuaries Jul 10 Jul 07 Jul 06 Jul 05 Jul 04 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 3204.80 3196.40 3198.50 3203.00 3198.00 0.00 3391.10 3060.90 Personal Goods 22.74 Beverages 8.71 NON FINANCIALS Index 2.21 FTSE 100 Price Change FTSE 100 Price Change
Jul 10 chge% Index Jul 07 Jul 06 ago yield% Cover ratio adj Return FT 30 Div Yield 1.53 1.54 1.54 1.53 1.53 0.00 3.93 2.74 Forestry & Paper 20.05 FTSE SmallCap Index 8.66 Mining 2.07 3I Group PLC 904.00 5.50 Marks And Spencer Group PLC 339.00 -5.50
FTSE 100 (100) 7370.03 0.26 6496.46 7350.92 7337.28 6682.86 3.81 0.90 29.12 165.15 6145.61 P/E Ratio net 29.13 29.05 28.95 29.21 29.12 0.00 19.44 14.26 Electronic & Elec Eq 18.52 Tobacco 8.55 Construct & Material 1.73 Admiral Group PLC 2020 -11.00 Mediclinic International PLC 721.00 -10.00
FTSE 250 (250) 19357.41 -0.19 17062.96 19395.14 19369.06 16706.39 2.72 1.65 22.25 293.08 14066.93 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 15.51 Financials 8.43 Real Est Invest & Tr 0.71 Anglo American PLC 1068 17.00 Merlin Entertainments PLC 473.30 0.10
FTSE 250 ex Inv Co (207) 20696.08 -0.26 18242.96 20750.68 20721.41 17932.44 2.77 1.68 21.40 320.00 15344.37 FT 30 hourly changes Aerospace & Defense 14.07 Banks 8.27 Consumer Services 0.65 Antofagasta PLC 824.00 8.50 Micro Focus International PLC 2202 -1.00
FTSE 350 (350) 4081.98 0.18 3598.14 4074.57 4067.37 3671.63 3.62 1.00 27.65 86.42 6838.47 8 9 10 11 12 13 14 15 16 High Low Nonlife Insurance 13.63 Leisure Goods 8.21 Tech Hardware & Eq -0.18 Ashtead Group PLC 1567 23.00 Mondi PLC 2021 21.00
FTSE 350 ex Investment Trusts (306) 4047.29 0.18 3567.56 4040.01 4032.86 3646.87 3.66 0.99 27.55 86.61 3492.87 3196.4 3206.6 3204.7 3204.5 3202.4 3197.5 3199.1 3203.2 3209.7 3209.8 3196.4 Industrial Metals & 13.02 Life Insurance 7.70 Automobiles & Parts -1.27 Associated British Foods PLC 2966 -4.00 Morrison (Wm) Supermarkets PLC 242.80 1.70
FTSE 350 Higher Yield (118) 3794.64 0.20 3344.86 3787.08 3780.99 3481.15 5.09 0.72 27.12 106.54 6656.78 FT30 constituents and recent additions/deletions can be found at Financial Services 12.93 Software & Comp Serv 7.59 Telecommunications -1.85 Astrazeneca PLC 5130 - National Grid PLC 931.10 -3.60
FTSE 350 Lower Yield (232) 3978.53 0.16 3506.95 3972.07 3964.36 3496.05 2.01 1.76 28.26 51.44 4361.07 Consumer Goods 11.85 FTSE 250 Index 7.29 Media -3.49 Aviva PLC 536.00 1.00 Next PLC 3693 -73.00
FTSE SmallCap (289) 5582.33 -0.12 4920.65 5588.79 5581.90 4573.53 2.77 1.36 26.59 80.79 7999.12 Industrial Eng 10.98 Technology 6.66 Gas Water & Multi -3.84
FTSE SmallCap ex Inv Co (154) 4908.16 -0.47 4326.39 4931.37 4913.62 3996.87 2.94 1.68 20.28 76.21 7396.02 FX: EFFECTIVE INDICES Industrials 9.43 Health Care 4.93 Utilities -4.18
Babcock International Group PLC 864.50 -9.50 Old Mutual PLC 191.40 -0.30
Bae Systems PLC 630.00 12.50 Paddy Power Betfair PLC 8000 -75.00
FTSE All-Share (639) 4027.69 0.17 3550.28 4020.82 4013.80 3611.02 3.59 1.01 27.61 84.28 6822.24
Jul 07 Jul 06 Mnth Ago Jul 10 Jul 07 Mnth Ago Travel & Leisure 9.41 Pharmace & Biotech 4.42 General Retailers -5.01 Barclays PLC 207.70 -0.45 Pearson PLC 690.50 5.00
FTSE All-Share ex Inv Co (460) 3971.70 0.17 3500.93 3965.08 3957.92 3572.00 3.65 1.00 27.36 84.54 3483.47 Health Care Eq & Srv 9.35 Food Producers 3.83 Electricity -5.71 Barratt Developments PLC 591.50 2.00 Persimmon PLC 2375 9.00
FTSE All-Share ex Multinationals (577) 1213.20 -0.03 886.34 1213.53 1212.34 1076.54 3.16 1.26 25.08 22.46 2174.60 Australia 94.51 93.83 92.61 Sweden 78.65 78.16 76.86 Equity Invest Instr 9.17 FTSE All{HY-}Share Index 3.81 Food & Drug Retailer -7.38 Bhp Billiton PLC 1263.5 21.00 Provident Financial PLC 2330 -42.00
FTSE Fledgling (97) 10022.10 0.00 8834.17 10022.01 10011.77 7632.98 2.98 1.39 24.05 160.53 18823.63 Canada 90.94 90.48 86.93 Switzerland 160.24 175.20 161.37 Real Est Invest & Se 9.08 Chemicals 3.12 Oil & Gas Producers -11.82 BP PLC 443.75 -0.25 Prudential PLC 1798.5 18.50
FTSE Fledgling ex Inv Co (47) 14129.46 -0.18 12454.69 14154.69 14127.52 9726.98 3.94 1.95 13.01 246.39 25909.55 Denmark 109.22 108.92 108.98 UK 77.00 77.36 77.43 Support Services 9.03 Basic Materials 2.98 Oil & Gas -12.19 British American Tobacco PLC 5210 -9.00 Randgold Resources LD 6765 100.00
FTSE All-Small (386) 3884.66 -0.11 3424.21 3888.94 3884.19 3170.74 2.78 1.36 26.46 56.50 7146.18 Japan 134.12 134.75 140.49 USA 102.14 101.76 102.39 Mobile Telecomms 8.84 FTSE 100 Index 2.91 Fixed Line Telecomms -20.27 British Land Company PLC 609.00 1.00 Reckitt Benckiser Group PLC 7671 3.00
FTSE All-Small ex Inv Co Index (201) 3681.93 -0.46 3245.51 3698.95 3685.86 2977.80 2.97 1.69 19.88 57.44 7029.65 New Zealand 121.13 120.45 119.10 Euro 92.57 91.37 91.32 Industrial Transport 2.47 Oil Equipment & Serv -24.62 Bt Group PLC 288.40 1.20 Relx PLC 1635 3.00
FTSE AIM All-Share Index (804) 958.70 -0.03 845.07 959.02 956.05 715.40 1.69 0.80 73.47 6.98 1055.69 Norway 86.75 86.58 86.36
Bunzl PLC 2244 -12.00 Rentokil Initial PLC 273.90 2.20
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1620 10.00 Rio Tinto PLC 3398.5 36.50
Oil & Gas (17) 7834.47 -0.12 6905.85 7843.68 7877.37 8134.08 6.61 0.40 37.75 259.92 7254.65 Index rebased 1/2/95. for further information about ERIs see Carnival PLC 5125 -30.00 Rolls-Royce Holdings PLC 932.00 -4.50
Oil & Gas Producers (10) 7528.31 -0.13 6635.97 7538.10 7571.72 7795.46 6.65 0.41 36.47 251.49 7216.87 Centrica PLC 206.70 -1.00 Royal Bank Of Scotland Group PLC 256.40 -2.30
Oil Equipment Services & Distribution (7)12606.02 0.38 11111.82 12557.78 12530.02 14503.57 5.01 -0.21 -95.04 306.86 9839.96 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2229 8.00 Royal Dutch Shell PLC 2059 -1.50
Basic Materials (30) 5259.76 1.10 4636.32 5202.37 5217.26 4079.18 2.38 1.07 39.36 95.40 5379.18 Compass Group PLC 1581 4.00 Royal Dutch Shell PLC 2041 -3.00
Chemicals (8) 13494.23 -0.06 11894.75 13502.24 13554.20 12383.35 2.31 2.29 18.89 219.92 12121.22 Jul 7 No of US $ Day Mth YTD Total
YTD Gr Div Jul 7 No of US $ Day Mth YTD Total YTD Gr Div Convatec Group PLC 304.20 2.70 Royal Mail PLC 414.50 4.20
Forestry & Paper (1) 23753.89 1.05 20938.32 23507.06 23377.77 16525.46 2.39 3.36 12.48 375.43 25911.93 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2779 7.00 Rsa Insurance Group PLC 643.00 8.00
Industrial Metals & Mining (2) 2749.20 0.46 2423.33 2736.54 2765.00 1434.93 0.47 21.53 9.94 13.01 2412.23 FTSE Global All Cap 7734 525.53 0.2 -0.8 11.39.7 748.26
2.4 Oil & Gas Producers 109 314.80 -0.5 -0.5 -10.4 518.06 -8.8 4.0 Croda International PLC 3849 -1.00 Sage Group PLC 676.00 4.50
Mining (19) 14669.17 1.24 12930.43 14489.08 14534.27 11254.47 2.41 0.77 54.14 273.28 7852.24 FTSE Global Large Cap 1441 462.39 0.1 -0.8 11.69.9 675.33
2.5 Oil Equipment & Services 28 303.91 -0.2 -0.2 -13.1 439.70 -12.6 3.4 Dcc PLC 6945 50.00 Sainsbury (J) PLC 246.10 -0.30
FTSE Global Mid Cap 1648 707.93 0.2 -0.8 11.29.9 956.38
2.1 Basic Materials 259 461.10 -0.2 -0.2 9.2 704.51 11.0 2.4 Diageo PLC 2284 23.00 Schroders PLC 3225 68.00
Industrials (111) 5401.34 0.14 4761.11 5393.90 5374.31 4557.65 2.28 0.87 50.71 71.12 5582.39
Construction & Materials (16) 7009.87 -0.22 6178.98 7025.01 7007.85 5459.64 2.13 0.30 155.06 106.52 7452.36 FTSE Global Small Cap 4645 744.23 0.4 -0.2 8.3 973.16
9.4 1.9 Chemicals 122 700.39 -0.1 -0.1 11.1 1076.05 12.9 2.5 Direct Line Insurance Group PLC 363.70 0.30 Scottish Mortgage Investment Trust PLC 397.10 1.80
Aerospace & Defense (9) 5522.29 0.54 4867.73 5492.79 5425.67 4654.35 2.18 -2.15 -21.40 63.69 5930.65 FTSE All-World 3089 306.60 0.1 -0.8 11.59.9 461.12
2.4 Forestry & Paper 16 272.63 -0.2 -0.2 14.5 464.06 17.1 3.2 Easyjet PLC 1414 -5.00 Segro PLC 483.00 1.60
General Industrials (6) 5031.82 0.03 4435.39 5030.48 4980.26 3881.51 2.53 1.35 29.34 56.24 5718.19 FTSE World 2542 543.12 0.2 -0.8 11.49.8 1096.48
2.4 Industrial Metals & Mining 70 388.80 -0.3 -0.3 7.4 591.24 8.7 2.4 Experian PLC 1573 7.00 Severn Trent PLC 2190 -18.00
Electronic & Electrical Equipment (10) 7367.09 0.46 6493.87 7333.31 7292.06 5894.38 1.72 1.95 29.86 54.61 6716.97 FTSE Global All Cap ex UNITED KINGDOM In 7408 545.10 0.2 -0.7 11.39.8 764.33
2.3 Mining 51 536.10 -0.5 -0.5 4.5 815.25 6.3 2.2 Fresnillo PLC 1430 10.00 Shire PLC 4186.5 -138.00
Industrial Engineering (12) 12535.26 0.87 11049.45 12427.09 12377.34 9434.95 2.12 1.42 33.11 171.69 15308.77 FTSE Global All Cap ex USA 5840 474.02 -0.4 -1.3 11.6 723.09
13.7 2.9 Industrials 546 374.12 0.2 0.2 12.9 539.07 14.3 2.0 G4S PLC 327.00 -0.50 Sky PLC 996.00 6.00
Industrial Transportation (7) 4862.07 0.43 4285.76 4841.43 4906.02 4434.05 4.11 1.20 20.34 135.28 4389.12 FTSE Global All Cap ex JAPAN 6447 538.04 0.3 -0.5 11.59.9 773.28
2.4 Construction & Materials 114 521.84 -0.1 -0.1 13.3 786.48 14.9 2.0 Gkn PLC 326.90 -0.60 Smith & Nephew PLC 1303 -2.00
Support Services (51) 7568.44 -0.04 6671.35 7571.77 7566.98 6688.89 2.24 1.86 24.03 98.66 7883.89 FTSE Global All Cap ex Eurozone 7082 541.33 0.2 -0.7 10.49.0 755.76
2.3 Aerospace & Defense 26 665.88 0.8 0.8 17.9 950.91 19.3 2.0 Glaxosmithkline PLC 1616 1.50 Smiths Group PLC 1624 -1.00
FTSE Developed 2099 493.26 0.2 -0.7 11.39.7 707.98
2.4 General Industrials 57 243.12 0.1 0.1 3.3 378.22 4.8 2.5 Glencore PLC 301.05 3.80 Smurfit Kappa Group PLC 2380 -
Consumer Goods (42) 22059.02 0.20 19444.34 22015.78 21880.44 20635.90 3.07 1.75 18.62 404.59 16322.64
FTSE Developed All Cap 5670 518.64 0.2 -0.7 11.09.5 735.45
2.3 Electronic & Electrical Equipment 71 409.74 -0.1 -0.1 19.2 540.46 20.2 1.6 Hammerson PLC 575.00 4.00 Sse PLC 1470 -4.00
Automobiles & Parts (1) 7682.30 -0.18 6771.71 7696.40 7705.80 6566.03 2.71 1.89 19.55 138.65 7405.14
FTSE Developed Large Cap 912 455.20 0.2 -0.7 11.39.7 663.28
2.5 Industrial Engineering 101 738.53 0.0 0.0 17.2 1049.46 18.8 2.0 Hargreaves Lansdown PLC 1285 8.00 St. James's Place PLC 1194 -
Beverages (5) 18396.67 0.92 16216.10 18228.21 18139.38 17254.58 2.61 1.52 25.27 202.35 12977.29
FTSE Developed Europe Large Cap 227 359.21 -0.2 -1.1 12.5 602.98
15.4 3.4 Industrial Transportation 99 644.11 0.3 0.3 14.4 928.50 15.9 2.2 HSBC Holdings PLC 738.30 10.10 Standard Chartered PLC 812.40 9.60
Food Producers (10) 8395.78 0.10 7400.62 8387.44 8420.24 8270.08 2.01 2.13 23.39 92.91 7258.06
FTSE Developed Europe Mid Cap 315 573.60 -0.2 -1.7 16.5 862.62
18.9 2.7 Support Services 78 327.80 0.4 0.4 11.0 451.80 12.3 1.8 Imperial Brands PLC 3435 -19.50 Standard Life PLC 407.90 2.30
Household Goods & Home Construction (16)15515.24 0.16 13676.21 15490.78 15404.38 13683.84 3.18 1.98 15.92 335.31 11035.74
FTSE Dev Europe Small Cap 708 814.41 0.1 -1.4 17.4 1185.66
19.6 2.4 Consumer Goods 431 471.22 0.0 0.0 12.7 697.64 14.3 2.4 Informa PLC 660.00 2.00 Taylor Wimpey PLC 180.00 1.60
Leisure Goods (2) 6055.05 0.46 5337.34 6027.43 5958.37 4728.77 6.10 0.84 19.51 158.08 5512.42
FTSE North America Large Cap 290 519.02 0.6 -0.3 8.5 706.88
9.7 2.1 Automobiles & Parts 106 388.53 -0.1 -0.1 5.6 556.78 7.5 2.7 Intercontinental Hotels Group PLC 4293 30.00 Tesco PLC 171.05 0.55
Personal Goods (6) 31567.07 0.56 27825.40 31389.78 31091.37 27011.11 2.64 3.03 12.51 442.96 21331.91
FTSE North America Mid Cap 387 764.67 0.7 0.3 6.5 969.57
7.4 1.7 Beverages 46 614.52 0.2 0.2 11.4 921.96 12.8 2.6 International Consolidated Airlines Group S.A. 633.50 5.50 Tui AG 1134 5.00
Tobacco (2) 57177.42 -0.27 50400.14 57333.45 56913.79 57431.75 3.59 1.24 22.53 1304.93 36995.59
FTSE North America Small Cap 1435 783.56 0.8 0.6 5.0 965.26
5.8 1.6 Food Producers 107 601.56 -0.4 -0.4 5.7 915.65 7.4 2.3 Intertek Group PLC 4223 28.00 Unilever PLC 4204.5 26.50
Health Care (22) 10300.25 -0.62 9079.36 10364.16 10303.47 10393.92 3.39 0.72 41.12 210.03 7954.40
FTSE North America 677 346.71 0.6 -0.2 8.2 483.31
9.3 2.0 Household Goods & Home Construction 49 455.61 0.4 0.4 12.7 668.87 14.3 2.4 Itv PLC 177.50 0.90 United Utilities Group PLC 864.00 -6.00
Health Care Equipment & Services (10) 8142.23 -0.10 7177.12 8150.18 8150.25 8130.47 1.26 2.47 32.12 71.49 7070.93
FTSE Developed ex North America 1422 250.77 -0.5 -1.6 12.1 411.40
14.3 2.9 Leisure Goods 31 214.05 -0.2 -0.2 33.8 281.35 34.8 1.3 Johnson Matthey PLC 2775 -9.00 Vodafone Group PLC 219.95 1.20
Pharmaceuticals & Biotechnology (12)13858.34 -0.68 12215.70 13953.40 13861.49 14010.88 3.66 0.64 42.62 300.97 9540.81
FTSE Japan Large Cap 180 348.06 -1.2 -3.4 2.1 Personal Goods
6.8 450.51
8.0 80 682.82 0.1 0.1 18.1 956.03 19.4 1.9 Kingfisher PLC 306.50 1.60 Whitbread PLC 3814 -29.00
Consumer Services (93) 4930.21 -0.09 4345.83 4934.66 4940.11 4548.27 2.78 1.92 18.74 85.59 4647.01 FTSE Japan Mid Cap 313 569.50 -1.3 -4.2 10.2 707.47
11.2 1.7 Tobacco 12 1476.79 -0.1 -0.1 16.6 3051.96 18.7 3.4
Food & Drug Retailers (7) 2982.01 0.13 2628.55 2978.21 2989.47 2681.83 1.44 2.15 32.29 31.26 3495.50 Land Securities Group PLC 1020 6.00 Wolseley PLC 4700 20.00
FTSE Global wi JAPAN Small Cap 794 626.00 -1.4 -3.0 12.2 805.08
13.4 1.8 Health Care 183 481.95 0.2 0.2 13.9 694.42 15.4 2.0 Legal & General Group PLC 264.10 -3.00 Worldpay Group PLC 373.00 4.60
General Retailers (28) 2394.24 -0.66 2110.45 2410.06 2407.00 2422.84 3.24 2.10 14.68 45.50 2751.28
FTSE Japan 493 147.55 -1.2 -3.6 2.0 Health Care Equipment & Services
7.5 214.29
8.7 68 822.29 0.6 0.6 19.5 958.81 20.3 1.1 Lloyds Banking Group PLC 66.56 0.03 Wpp PLC 1567 -2.00
Media (22) 7666.82 0.11 6758.07 7658.23 7738.03 7484.58 3.15 1.75 18.14 140.24 4747.98
FTSE Asia Pacific Large Cap ex Japan 551 656.12 -0.4 -0.7 15.8 1030.88
17.7 2.9 Pharmaceuticals & Biotechnology 115 341.95 0.1 0.1 11.7 515.16 13.5 2.4 London Stock Exchange Group PLC 3731 -2.00
Travel & Leisure (36) 9329.82 -0.07 8223.95 9336.63 9282.79 7948.89 2.67 1.95 19.21 166.10 8880.13
FTSE Asia Pacific Mid Cap ex Japan 413 882.61 -0.4 -0.3 16.0 1326.01
17.4 2.7 Consumer Services 382 427.23 0.1 0.1 8.3 570.67 9.3 1.7
Telecommunications (6) 3331.39 0.43 2936.52 3317.04 3306.91 3796.88 5.56 -0.01 -3194.6 94.42 3765.20 FTSE Asia Pacific Small Cap ex Japan 1451 544.40 -0.3 -1.2 12.0 804.62
13.2 2.6 Food & Drug Retailers 55 282.65 -0.2 -0.2 -0.1 394.11 1.2 2.1
Fixed Line Telecommunications (4) 3398.48 0.33 2995.66 3387.16 3391.58 4610.01 5.04 1.27 15.64 7.92 3071.13
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
964 519.27
2064 704.92
15.8 866.36
17.7 2.9 General Retailers
12.6 1053.29
14.5 2.9 Media
121 585.01
79 323.78
7.4 759.98
6.5 434.09
Mobile Telecommunications (2) 4935.25 0.47 4350.27 4911.94 4887.87 5170.47 5.78 -0.48 -36.35 194.42 5064.92 FTSE Emerging Large Cap 529 665.27 -0.4 -1.7 12.4 1001.95
14.4 2.9 Travel & Leisure 127 444.98 0.5 0.5 16.9 601.25 18.1 1.7 Jul 10 Jul 07 Jul 06 Jul 05 Jul 04 Yr Ago
Utilities (7) 8216.53 -0.42 7242.62 8251.39 8156.06 9493.61 5.07 1.67 11.78 239.18 9422.47 FTSE Emerging Mid Cap 461 889.59 -0.4 -0.9 11.8 1316.92
13.6 2.8 Telecommunication 94 158.24 -0.3 -0.3 -1.7 297.12 0.8 4.2 SEAQ Bargains 8617.00 6996.00 6996.00 6302.00 7223.00 8329.00
Electricity (2) 8671.26 -0.20 7643.45 8688.96 8570.90 9375.64 5.67 2.05 8.61 149.05 12389.94 FTSE Emerging Small Cap 1074 741.39 -0.2 -0.9 14.4 1059.80
15.7 2.6 Fixed Line Telecommuniations 43 128.66 -0.4 -0.4 -8.5 266.16 -5.7 4.8 Order Book Turnover (m) 255.24 277.92 277.92 359.04 221.27 233.47
Gas Water & Multiutilities (5) 7652.55 -0.48 6745.49 7689.75 7605.28 8999.53 4.91 1.55 13.15 249.14 8820.57 FTSE Emerging Europe 115 341.40 -1.1 -1.4 1.5 535.00
4.1 4.3 Mobile Telecommunications 51 173.31 -0.2 -0.2 8.5 291.89 10.5 3.5 Order Book Bargains 890188.00 913307.00 913307.00 1071811.00 1020753.00 754262.00
Financials (295) 5206.05 0.47 4588.97 5181.60 5179.14 3961.32 3.48 1.05 27.41 110.21 4844.61 FTSE Latin America All Cap 234 836.47 0.5 -0.7 10.78.9 1290.12
2.9 Utilities 167 266.38 0.1 0.1 8.1 518.01 10.3 3.7 Order Book Shares Traded (m) 1313.00 1322.00 1322.00 1615.00 1643.00 1303.00
Banks (12) 4457.45 0.77 3929.11 4423.41 4424.83 3090.07 3.96 0.63 39.80 108.61 3315.42 FTSE Middle East and Africa All Cap 242 671.07 -0.7 -4.2 2.0 1048.09
3.9 3.2 Electricity 109 291.96 0.0 0.0 7.3 560.70 9.4 3.7 Total Equity Turnover (£m) 7857.13 8036.98 8036.98 7757.91 7658.96 7574.86
Nonlife Insurance (10) 3591.74 0.36 3166.01 3578.91 3555.36 2949.01 3.00 1.68 19.83 60.87 6341.33 FTSE Global wi UNITED KINGDOM All Cap In 326 335.58 -0.3 -2.3 10.1 3.7 Gas Water & Multiutilities
7.8 562.88 58 280.53 0.2 0.2 9.3 561.14 11.8 3.8 Total Mkt Bargains 1028191.00 1040330.00 1040330.00 1184658.00 1136103.00 850001.00
Life Insurance/Assurance (10) 8675.77 0.30 7647.42 8649.42 8644.86 6279.80 3.57 1.25 22.37 210.60 8522.32 FTSE Global wi USA All Cap 1894 597.22 0.7 -0.2 8.1 789.48
9.2 1.9 Financials 699 234.86 0.0 0.0 10.1 384.32 12.2 2.9 Total Shares Traded (m) 5559.00 4823.00 4823.00 4507.00 4155.00 4493.00
Index- Real Estate Investment & Services (19) 2710.00 -0.44 2388.78 2721.95 2709.42 2382.92 2.59 1.54 25.09 35.28 7250.88 FTSE Europe All Cap 1444 419.87 -0.2 -1.2 13.2 680.52
16.0 3.2 Banks 247 212.11 -0.2 -0.2 10.1 373.08 12.5 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
Real Estate Investment Trusts (34) 2678.26 0.33 2360.81 2669.51 2667.32 2559.99 3.65 1.25 21.92 61.66 3358.30 FTSE Eurozone All Cap 652 412.54 -0.1 -1.1 16.5 674.91
19.3 3.0 Nonlife Insurance 68 253.59 0.5 0.5 9.3 368.88 11.4 2.3 (c) Market closed.
General Financial (31) 8995.16 0.17 7928.96 8980.03 8978.35 7237.26 3.26 2.14 14.35 159.32 10344.47 FTSE RAFI All World 3000 3035 6398.90 -0.1 -0.4 7.2 8461.92
9.1 2.9 Life Insurance 52 223.95 0.1 0.1 11.8 358.28 13.9 2.9
Equity Investment Instruments (179) 9568.81 0.25 8434.61 9544.73 9540.09 7973.14 2.37 1.21 34.75 123.16 5240.98 FTSE RAFI US 1000 997 10488.47 0.5 0.2 3.4 13755.86
4.6 2.4 Financial Services 150 269.90 0.2 0.2 12.0 371.72 13.2 1.9
Non Financials (344) 4693.80 0.06 4137.44 4690.99 4680.60 4438.05 3.63 0.99 27.69 97.79 6958.78 FTSE EDHEC-Risk Efficient All-World 3089 368.90 0.2 -1.2 10.2 513.85
11.6 2.2 Technology 182 228.90 0.9 0.9 17.9 280.61 19.0 1.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Technology (16) 1990.70 0.14 1754.74 1987.87 1977.87 1575.65 2.24 1.38 32.24 28.57 2564.26 FTSE EDHEC-Risk Efficient Developed Europe 542 310.01 -0.1 -2.0 15.8 474.15
18.1 2.6 Software & Computer Services 88 396.28 0.9 0.9 19.1 462.45 19.7 0.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Software & Computer Services (12) 2261.00 0.30 1993.00 2254.13 2239.95 1958.53 2.18 1.47 31.22 34.30 3077.38 Oil & Gas 146 335.90 -0.4 -1.9 -10.5 541.16
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Technology Hardware & Equipment (4) 1969.38 -1.44 1735.95 1998.12 2012.66 1783.51 2.88 0.73 47.57 12.16 2308.84 Alternative Energy 9 110.91 -0.4 -0.4 20.7 150.24 21.7 1.6 liable for any loss arising from the reliance on or use of the listed information.
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Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 100 7384.95 7374.29 7372.43 7371.18 7365.17 7347.55 7349.59 7369.45 7384.63 7386.28 7344.38 mid cap) - please see The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
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Data provided by Morningstar |
FTSE 250 19410.83 19394.69 19365.65 19360.02 19313.03 19296.23 19338.02 19331.65 19362.45 19411.65 19295.11
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Time of FTSE 100 Day's high:14:54:00 Day's Low13:08:15 FTSE 100 2010/11 High: 7547.63(29/05/2017) Low: 7099.15(31/01/2017) Group companies and is used by FTSE International Limited under licence.
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For changes to FTSE Fledgling Index constituents please refer to ‡ Values are negative.


Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Accrol Group Holdings Pre 135.053 - 9.399 - 9 - 4 - Oct 11 6 - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- AEW UK REIT Pre 6.099 4.636 5.04 4.83 2 2 Jun 30 4 3.5 06/29 5.00 AIM JAN Jangada Mines PLC 5.50 -0.25 5.75 5.00 1086.3
There are currently no rights offers by any companies listed on the LSE. 06/26 7.25 AIM TXP Touchstone Exploration Inc 8.13 -0.13 9.68 7.50 838.0

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at
For more information on dividend payments visit For a full explanation of all the other symbols please refer to London Share Service notes.
Tuesday 11 July 2017 FINANCIAL TIMES 17



52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AutomData 104.59 -0.55 105.68 85.48 2.16 26.27 46794.65 Lockheed 285.94 0.74 286.95 228.50 2.50 22.45 82763.35
ANZ 28.74 0.12 32.95 23.00 8.22 14.17 64083.79 Nokia 5.49 0.01 5.96 3.66 - - - AstellasPh 1385.5 6.00 1779 1337.5 2.47 12.86 25100.54 AtlasCpcoB 292.70 4.00 309.30 197.80 - - - Avago Tech 239.98 0.36 256.78 151.94 1.26-492.58 97574.1 Lowes 77.30 0.15 86.25 64.87 1.80 24.37 65258.7
BHPBilltn 24.52 -0.07 27.95 18.60 2.42 38.47 59807.31 SampoA 46.60 0.67 47.28 35.57 - - - Bridgestne 4858 64.00 4936 3183 3.04 13.48 34590.41 Ericsson 61.55 0.50 67.75 43.19 - - - BakerHu 57.68 3.17 68.59 43.09 1.22 -12.71 24541.87 Lyondell 84.30 0.37 97.64 71.55 4.15 9.33 33956.46
CmwBkAu 82.81 0.68 87.74 69.22 7.19 15.47 108791.7 France (€) Canon 3748 96.00 3967 2808 4.22 21.84 43775.52 H&M 208.50 -4.40 279.90 199.60 - - - BankAm 24.77 -0.07 25.80 13.11 1.14 14.77 246458.78 Marathon Ptl 54.28 0.21 55.20 35.43 2.65 23.28 28157.07
CSL 133.32 -0.85 145.00 91.62 1.46 39.11 45948.33 Airbus Grpe 74.36 0.26 77.25 48.19 - - - CntJpRwy 17920 35.00 19835 16305 0.79 8.51 32326.46 Investor 406.40 0.30 425.60 272.80 - - - Baxter 60.65 -0.07 61.52 43.13 0.88 17.44 32973.53 Marsh&M♦ 78.12 -0.21 80.47 62.33 1.79 21.33 40166.18
NatAusBk 30.06 0.26 34.09 24.32 9.72 13.54 61077.81 AirLiquide 107.95 0.55 115.25 89.26 - - - Denso 4817 51.00 5323 3441 2.54 15.33 33495.59 Nordea Bk 109.40 0.70 115.70 67.85 - - - BB & T 45.28 -0.20 49.88 35.15 2.68 17.19 36734.79 MasterCard 122.72 0.52 126.19 87.94 0.69 31.15 129337.36
Telstra 4.36 0.04 5.86 4.00 9.58 15.00 39381.21 AXA 25.18 0.18 25.80 16.26 - - - EastJpRwy 10785 135.00 11290 8388 1.23 16.46 36777.13 SEB 103.80 0.10 107.30 68.70 - - - BectonDick 197.77 -0.02 198.09 161.29 1.45 31.94 44706.97 McDonald's 155.62 -0.65 156.56 110.33 2.42 26.73 126841.22
Wesfarmers 40.87 -0.04 46.06 39.52 6.66 119.53 35193.02 BNP Parib 65.56 0.04 68.40 38.02 - - - Fanuc 22060 335.00 23410 15755 2.38 28.88 39419.78 SvnskaHn 124.30 0.60 136.30 93.55 - - - BerkshHat 256950 170.00 266445 213030 - 18.22 197571.42 McKesson 165.23 0.55 199.43 114.53 0.70 6.90 34937.87
Westpc 30.87 0.28 35.39 28.08 8.68 14.21 79578.36 ChristianDior 241.90 1.90 257.95 143.05 - - - FastRetail 37180 360.00 44370 26105 0.96 36.63 34535.82 Swedbank 212.50 - 234.00 166.70 - - - Biogen 271.60 -2.33 307.33 226.69 - 16.54 57610.49 Medtronic♦ 87.42 -0.54 89.72 69.35 1.96 30.42 118806.11
Woolworths 25.77 0.27 27.72 20.52 4.24 12.51 25333.1 Cred Agr 14.66 -0.04 14.82 7.08 - - - Fuji Hvy Ind 4118 32.00 5016 3383 3.56 10.23 27737.34 Telia Co 38.44 0.12 41.30 33.93 - - - BkNYMeln 51.97 0.22 52.34 38.11 1.46 15.55 54042.41 Merck 63.15 -0.01 66.80 57.18 3.03 39.10 172725.64
Belgium (€) Danone 65.75 0.17 70.53 57.66 - - - Hitachi 701.00 2.70 709.90 411.00 1.96 13.54 29670.8 Volvo 149.00 1.20 152.00 81.00 - - - BlackRock 436.82 4.44 438.14 336.84 2.18 22.04 70614.52 Metlife 56.04 -0.13 58.09 38.86 2.94 -89.80 60295.29
AnBshInBv 98.30 0.94 119.60 92.13 - - - EDF 8.64 -0.10 12.23 7.33 - - - HondaMtr 3104 17.00 3675 2530.5 2.96 12.85 49237.49 Switzerland (SFr) Boeing 203.03 0.66 204.39 126.31 2.38 24.31 122545.05 Microsoft 69.97 0.51 72.89 51.55 2.21 29.96 540165.81
KBC Grp 67.75 -0.31 70.98 39.41 - - - Engie SA 13.16 0.07 15.21 10.77 - - - JapanTob 3857 -5.00 4432 3607 3.55 17.17 67551.12 ABB 23.80 - 24.89 18.70 3.16 24.42 54520.98 BrisMySq♦ 56.09 0.18 77.12 46.01 2.82 18.93 92404.6 Mnstr Bvrg 50.53 -0.17 55.50 40.64 - 39.61 28691.53
Esslr Intl 112.00 -0.40 124.55 93.41 - - - KDDI 2909 -80.50 3378 2745.5 3.08 12.45 65906.6 CredSuisse 14.63 0.11 15.74 9.82 4.59 -16.96 38678.59 CapOne 82.10 -0.40 96.92 63.13 1.74 13.36 39651.72 MondelezInt♦ 43.30 0.08 47.23 40.50 1.76 37.92 65698.14
Brazil (R$)
Hermes Intl 442.40 -1.50 468.30 333.70 - - - Keyence 49020 -50.00 52130 34390 0.25 - 52200.36 Nestle 82.90 0.65 86.00 71.45 2.69 30.44 266857.73 CardinalHlth♦ 77.27 0.08 85.52 62.70 2.39 17.93 24408.25 Monsanto♦ 118.05 0.05 118.97 97.35 1.88 32.03 51862.08
Ambev♦ 18.31 0.29 20.09 15.79 2.23 24.23 88216.69
LOreal 180.05 0.70 197.15 156.50 - - - MitsbCp 2390.5 -5.50 2705.5 1730.5 3.53 8.18 33285.86 Novartis 79.50 0.65 84.35 67.40 3.43 28.21 215183.25 Carnival 65.84 0.01 67.30 44.11 1.94 20.75 35333.45 MorganStly 46.00 -0.05 47.33 26.03 1.58 15.13 85089.98
Bradesco♦ 27.52 0.24 31.13 24.01 2.18 9.42 25766.9
LVMH 216.80 0.40 239.65 132.35 - - - MitsubEst 2038 26.50 2443 1753 1.03 26.13 24823.08 Richemont 78.30 0.80 85.90 65.60 2.13 34.38 42276.17 Caterpillar 108.10 1.18 108.18 75.78 2.93-420.32 63684.93 MylanNV 37.68 0.07 50.40 33.60 - 36.27 20195.79
Cielo 24.20 0.01 31.48 20.36 2.23 15.72 20153.55
Orange 14.05 0.04 15.80 13.04 - - - MitsubishiEle 1669.5 10.00 1802 1140 1.70 16.15 31391.51 Roche 241.20 -0.70 273.00 218.30 3.33 21.88 175277.33 CBS 63.47 0.66 70.10 48.88 1.08 17.62 23379.69 Netflix 152.64 2.46 166.87 84.50 - 192.71 65788.52
ItauHldFin 32.10 -0.18 36.38 23.82 4.67 8.46 32980.09
PernodRic 116.00 0.15 124.45 95.73 - - - MitsuiFud 2608.5 30.00 2863.5 2031.5 1.37 18.56 22646.63 Swiss Re 91.05 0.60 98.50 86.30 5.26 9.21 33910.43 Celgene 131.83 -0.73 135.18 96.93 - 48.18 102936.07 NextEraE 141.77 1.29 144.87 110.49 2.61 16.79 66371.42
Petrobras 12.68 - 19.72 12.13 - -15.74 28927.55
Renault 80.95 -0.30 90.76 65.67 - - - MitUFJFin 749.30 -4.70 778.80 434.20 2.18 14.33 92970.07 Swisscom 465.20 1.80 488.00 426.80 9.40 15.05 24925.8 CharlesSch 43.48 0.16 44.10 25.61 0.59 35.41 58138.54 Nike 58.51 0.53 60.33 49.01 1.20 23.58 77322.18
Vale 29.37 0.48 37.28 16.12 0.55 7.48 28963.86
Safran 82.00 0.03 82.79 58.46 - - - Mizuho Fin 204.60 -1.30 225.30 144.30 3.74 6.10 45489.87 Syngent 463.00 -6.70 471.20 360.50 2.57 34.61 42748.26 Charter Comms 335.00 2.57 355.00 227.63 - 17.73 90318.01 NorfolkS 123.09 0.75 125.31 84.67 1.90 22.98 35669.35
Canada (C$) Murata Mfg 16915 230.00 17740 10810 1.33 23.38 33366.9 Chevron Corp 103.07 -0.42 119.00 97.53 4.29 65.49 195272.47 Northrop 261.92 -0.07 263.74 206.69 1.39 20.64 45724.1
Sanofi 83.90 0.24 92.97 66.72 - - - UBS 16.94 0.10 17.49 15.11 4.99 17.22 67490.25
BCE♦ 58.02 -0.10 63.41 56.80 4.51 18.93 40568.2 NipponTT 5230 -64.00 5500 4156 2.42 12.69 96012.46 Chubb♦ 145.79 -0.73 148.32 121.48 1.96 15.79 68073.06 NXP 109.22 0.11 109.98 76.82 - 19.20 37790.43
Sant Gbn 47.33 0.22 52.40 32.85 - - - Zurich Fin 289.20 3.10 294.30 225.60 6.13 13.45 45268.53
BkMontrl 96.33 0.48 104.15 81.62 3.38 12.94 48823.8 Nissan Mt 1152 5.50 1220 938.90 4.39 6.59 42578.62 Cigna 170.10 0.49 173.21 115.03 0.02 23.34 43546.81 Occid Pet♦ 58.77 0.09 78.48 57.20 5.35 -43.10 44934.47
Schneider 67.64 0.24 74.50 49.90 - - - Taiwan (NT$)
BkNvaS♦ 78.59 0.25 82.30 63.24 3.75 13.17 73357.74 Nomura 664.30 7.20 784.00 357.20 3.17 9.60 20618.45 Cisco♦ 30.93 0.03 34.60 28.88 3.44 15.79 154626.68 Oracle 49.70 0.35 51.85 37.62 1.25 22.79 205593.1
SFR Group 29.54 0.41 32.78 19.51 - - - Chunghwa Telecom 108.50 - 125.50 99.50 4.99 21.09 27534.75
Brookfield 50.20 0.04 53.08 42.71 1.40 30.56 38540.99 Nppn Stl 2649 19.00 2912 1822.5 1.26 59.46 22044.76 Citigroup 67.65 -0.26 68.91 41.63 0.81 13.18 186257.89 Pepsico 115.27 -0.24 118.24 98.50 2.69 24.20 164663.34
SocGen 49.19 -0.24 52.26 26.32 - - - Formosa PetChem 103.00 -1.00 119.00 86.10 4.02 10.78 32098.1
CanadPcR♦ 210.70 1.24 218.78 170.02 0.94 21.11 23981.6 NTTDCMo 2622.5 -27.50 2946 2361 3.22 14.21 89553.85 CME Grp 124.88 0.05 127.96 98.41 1.82 29.40 42432.74 Perrigo 72.22 -0.25 99.14 65.47 0.85 -2.95 10355.44
Total 42.77 0.31 49.50 40.53 - - - HonHaiPrc 115.50 1.00 122.50 76.30 2.97 13.05 65475.94
CanImp 106.23 0.17 120.83 97.05 4.35 9.45 35978.04 Panasonic 1491.5 27.00 1578 895.60 1.71 16.30 32039.31 Coca-Cola 44.48 0.09 46.06 39.88 3.28 30.45 190043.44 Pfizer 33.52 0.17 37.39 29.83 3.74 27.38 200042.15
UnibailR 213.55 - 250.55 203.10 - - - MediaTek 247.00 -3.00 274.00 203.00 4.62 14.35 12779.91
CanNatRs 37.06 0.73 46.74 35.90 2.54-195.14 34967.77 Seven & I 4535 -25.00 4902 4148 2.09 39.32 35203.07 Cognizant 67.03 0.07 68.18 45.44 - 23.70 39480.46 Phillips66 82.59 -0.01 88.87 73.82 3.14 24.93 42624.61
Vinci 74.85 0.96 80.43 49.93 - - - TaiwanSem♦ 206.00 - 218.50 166.50 3.02 14.54 174746.65
CanNatRy 106.88 0.93 108.64 77.02 1.43 22.28 62578.33 ShnEtsuCh 9965 21.00 10395 5996 1.27 22.90 37706.93 ColgtPlm 73.55 0.21 77.27 63.43 2.19 25.98 64966.19 PhilMorris♦ 118.82 0.92 123.55 86.78 3.58 25.55 184544.47
Vivendi 19.76 0.21 20.82 15.96 - - -
Enbridge 51.14 -0.16 59.19 49.61 4.22 47.24 65091.81 Softbank 8928 -6.00 9521 5194 0.48 25.67 86051.89 Thailand (THB) Comcast♦ 38.89 0.32 42.18 30.02 1.51 20.06 184086.3 PNCFin 126.62 0.08 131.83 80.45 1.74 16.66 61271.6
GtWesLif 35.81 0.21 37.79 30.83 3.58 13.87 27532.91 Germany (€) PTT Explor 374.00 5.00 430.00 307.00 2.65 11.60 31330.84
Sony 4318 73.00 4408 2930 0.49 72.00 47795.31 ConocPhil 43.19 0.19 53.17 38.80 2.42 -33.32 53430.52 PPG Inds 111.21 0.21 113.49 89.64 1.48 50.28 28491.65
ImpOil 36.12 -0.05 48.72 35.85 1.63 14.17 23746.12 Allianz 180.00 1.25 180.60 119.00 3.81 14.59 92149.76
SumitomoF 4373 1.00 4768 2786 3.50 7.70 54150.06 United Arab Emirates (Dhs) Corning 30.35 0.07 30.62 20.57 1.90 8.06 27928.94 Praxair 133.40 0.34 138.69 111.89 2.34 24.38 38066.22
Manulife 24.93 -0.08 25.57 16.87 3.03 16.09 38284.98 BASF 81.47 0.35 94.32 65.77 3.44 17.72 85218.27
Takeda Ph 5694 57.00 5856 4321 3.33 36.93 39421.51 Emirtestele 17.35 - 20.20 17.10 4.81 16.32 41080.51 Costco 151.85 -2.26 183.18 142.11 1.21 26.46 66653.22 Priceline 1931.72 13.22 1935 1304.23 - 42.40 94929.43
Potash 22.23 1.19 26.62 19.93 4.77 35.71 14503.26 Bayer 110.40 0.45 123.90 86.03 2.19 20.30 103971.21
TokioMarine 4774 22.00 5441 3367 2.67 11.72 31480.7 United Kingdom (p) CrownCstl 99.25 -0.22 104.68 79.38 3.78 100.36 36336.29 ProctGmbl 87.67 0.02 92.00 81.18 3.14 23.81 224237.31
RylBkC 95.25 0.16 99.90 76.99 3.48 13.16 107803.23 BMW 81.62 0.24 91.76 65.30 3.79 7.52 55957.15
Toyota 6187 30.00 7215 5157 3.79 8.58 176786.76 AscBrFd 2966 -4.00 3183 2335 1.24 21.34 30203.83 CSX 54.90 0.05 55.31 26.07 1.35 29.16 50651.91 Prudntl 111.48 0.12 114.55 70.00 2.61 11.03 47824.92
Suncor En 36.65 -0.02 44.90 33.76 3.22 40.11 47464.17 Continental 191.40 2.70 210.35 158.20 1.89 14.06 43596.42
Mexico (Mex$) AstraZen 5130 - 5520 3996 4.31 24.03 83523.48 CVS 78.75 0.11 98.66 69.30 2.32 15.98 80230.14 PublStor 204.96 -2.07 258.69 200.65 3.71 28.91 35631.45
ThmReut 58.95 -0.09 62.83 52.01 3.07 29.87 32880.22 Daimler 63.36 -0.12 73.23 51.98 5.01 8.49 77196.72
AmerMvl 15.00 0.27 15.15 10.40 1.83 25.06 37188.58 Aviva 536.00 1.00 570.50 352.10 4.01 35.50 28019.23 Danaher♦ 82.64 -0.43 88.01 75.71 0.68 27.42 57362.1 Qualcomm 55.60 0.25 71.62 51.05 3.92 18.02 82145.47
TntoDom♦ 65.43 0.31 71.31 55.04 3.22 13.81 93863.16 Deut Bank 16.58 -0.10 19.97 9.90 - -21.06 39025.04
FEMSA UBD 175.60 0.07 184.10 28.35 1.40 167.79 - Barclays 207.70 -0.45 267.32 131.71 1.44 15.85 45504.5 Deere♦ 128.02 1.38 128.37 76.73 1.86 23.20 40948.75 Raytheon♦ 166.26 0.39 166.94 132.89 1.36 20.88 48394.55
TrnCan♦ 62.20 -0.07 65.24 57.36 3.70 115.97 42072.4 Deut Tlkm 15.70 0.13 18.15 14.06 3.39 270.77 85107.41
WalMrtMex 41.63 -0.06 46.10 34.70 1.32 25.56 40456.5 BP 443.75 -0.25 521.20 408.63 6.93 -28.69 112330.47 Delphi 90.32 1.20 90.41 60.50 1.34 20.61 24195.87 Regen Pharm 493.85 -2.65 543.55 325.35 - 58.05 51547.64
ValeantPh 21.65 0.78 42.25 11.20 - -4.02 5767.57 DeutsPost 33.15 0.32 33.57 24.29 2.48 16.34 45810.52
BrAmTob 5210 -9.00 5643.6 2879.89 2.96 22.50 124949.01 Delta 54.99 -0.47 55.75 35.84 1.39 9.90 40474.95 ReynoldsAm 64.41 -0.17 67.81 43.38 2.95 27.11 91894.52
E.ON 8.43 0.18 9.72 5.99 5.73 -6.98 21121.61 Netherlands (€)
China (HK$) BSkyB 996.00 6.00 1050 747.50 3.29 27.67 22023.38 Devon Energy 29.73 0.19 50.69 28.79 2.00 -1.64 15629.06 S&P Global 148.37 -0.42 150.40 107.21 1.01 17.95 38249.79
Fresenius Med 83.90 0.47 89.22 70.69 0.92 20.97 29354.85 Altice 19.99 -0.03 23.43 12.20 - - -
AgricBkCh♦ 3.41 -0.05 3.80 2.79 5.73 5.30 13415.96 BT 288.40 1.20 419.40 277.44 5.01 15.10 36950.8 DiscFinServ 60.93 -0.44 74.33 53.91 1.99 10.13 23165.02 Salesforce 88.48 0.56 91.99 66.43 - 468.38 63015.46
Fresenius SE 74.84 0.12 80.07 63.62 0.71 25.23 47175.36 ASML Hld 117.70 1.20 124.95 85.05 - - -
Bk China 3.59 -0.02 4.08 3.07 5.72 5.43 38422.76 Compass■ 1581 4.00 1765.92 1350.96 2.09 22.59 33445.2 Disney 103.57 0.25 116.10 90.32 1.50 17.93 162081.25 Schlmbrg♦ 65.39 0.31 87.84 64.15 3.18 -50.66 90857.89
HenkelKgaA 104.50 0.15 114.60 92.38 2.82 22.12 30918.22 Heineken 85.20 0.47 89.06 67.47 - - -
BkofComm♦ 5.49 -0.01 6.44 4.92 5.74 5.29 24601.79 Diageo 2284 23.00 2413.5 1896.15 2.52 25.63 73960.61 DominRes 75.73 -0.06 81.65 69.51 3.85 21.15 47633.09 Sempra Energy♦ 111.07 0.54 117.97 92.95 2.86 18.58 27859.84
Linde 169.05 3.35 179.70 119.55 1.67 30.35 35757.78 ING 15.60 -0.01 15.88 8.53 - - -
BOE Tech 1.39 0.08 1.98 1.30 1.51 18.15 35.40 GlaxoSmh♦ 1616 1.50 1745.56 1446.5 4.95 47.39 102225.99 DowChem♦ 64.81 0.92 65.47 48.09 2.92 15.40 79178.55 Shrwin-Will 352.67 0.64 362.57 239.48 0.99 28.26 32843.56
MuenchRkv 176.55 0.80 189.40 140.90 4.55 10.64 31217.06 Unilever 48.47 0.40 51.31 36.22 - - -
Ch Coms Cons♦ 9.95 -0.05 11.74 8.09 2.23 8.36 5638.42 Glencore 301.05 3.80 347.00 164.20 - -74.41 55742.48 DukeEner 83.69 0.27 87.75 72.34 4.17 20.86 58573.25 SimonProp 156.16 -0.48 229.10 150.15 4.38 25.95 48752.25
SAP 91.45 0.56 96.38 66.19 1.22 31.40 128137.05 Norway (Kr)
Ch Evrbrght 3.58 -0.04 4.06 3.29 6.21 4.87 3147.25 HSBC 738.30 10.10 741.80 439.73 5.63 130.33 190412.1 DuPont 83.00 0.97 83.93 61.79 1.88 27.08 71963.66 SouthCpr 35.72 0.74 39.50 24.90 0.66 29.68 27612.15
Siemens 120.35 -0.20 133.50 87.75 2.91 17.62 116675.41 DNB 141.60 -0.90 148.50 90.80 - - -
Ch Rail Cons 10.22 -0.02 11.98 8.61 1.73 8.53 2715.92 Imperial Brands 3435 -19.50 4154 3324 4.52 32.34 42360.27 Eaton 80.20 0.84 80.16 59.07 2.96 18.17 35873.46 Starbucks 57.87 -0.17 64.87 50.84 1.60 27.85 83801.55
Volkswgn 135.75 -0.45 157.40 116.05 0.08 11.32 45688.66 Statoil 137.50 1.50 163.50 123.90 - - -
Ch Rail Gp 6.18 -0.01 7.71 5.55 1.65 10.21 3327.96 LlydsBkg 66.56 0.03 73.58 49.20 3.53 27.73 61438.73 eBay 35.03 0.80 36.50 23.95 - 4.94 37914.3 StateSt♦ 91.33 0.46 91.99 52.88 1.67 16.66 34361.61
ChConstBk 5.94 0.01 6.71 5.15 5.38 5.48 182779.67 Hong Kong (HK$) Telenor 138.40 1.20 150.90 122.50 - - - Ecolab 132.48 -0.14 134.89 110.65 1.12 30.74 38425.21 Stryker♦ 141.05 -0.07 145.62 106.48 1.17 30.81 52719.56
Natl Grid♦ 931.10 -3.60 1229.83 929.60 5.10 17.82 41194.16
China Vanke 22.70 -0.85 24.10 15.16 3.69 10.31 3820.44 AIA 56.25 0.90 58.45 42.65 1.34 19.98 86926.81 Qatar (QR) Emerson 59.51 0.04 64.37 49.22 3.30 22.60 38349.79 Sychrony Fin 29.31 -0.39 38.06 26.01 0.44 11.13 23770.8
Prudential 1798.5 18.50 1831.5 1109.59 2.19 23.98 59821.03
ChinaCitic 4.75 -0.04 5.50 4.67 5.23 4.79 9047.61 BOC Hold 37.20 0.45 39.50 23.20 3.45 15.49 50339.44 QatarNtBk 124.60 1.60 173.00 121.70 2.63 8.97 31608.32 EOG Res 88.96 0.52 109.37 78.04 0.77 -80.82 51353.8 Target 50.31 -0.76 79.33 48.56 4.66 10.59 27756.44
RBS 256.40 -2.30 271.00 155.00 - -4.31 39168.31
ChinaLife♦ 23.95 0.10 26.05 16.50 2.05 29.76 22809.88 Ch OSLnd&Inv 23.35 0.15 27.85 20.15 2.53 6.49 32743.38 EquityResTP♦ 64.94 -0.04 71.53 58.28 3.19 27.45 23843.04 TE Connect 79.50 0.42 80.70 56.53 1.92 13.70 28224.67
Russia (RUB) ReckittB 7671 3.00 8110.43 6496 1.92 29.91 69361.27
ChinaMBank♦ 22.95 -0.10 24.30 16.56 3.54 7.97 13485.17 ChngKng 60.90 0.80 62.20 46.50 2.23 12.90 28900.19 Exelon 35.96 0.38 37.70 29.82 3.66 28.31 33302.44 Tesla Mtrs 316.73 3.51 386.99 178.19 - -67.08 52025.99
Gzprm neft 124.12 1.12 160.62 111.46 6.99 2.72 48754.18 RELX 1635 3.00 1728 1273 1.99 29.30 -
ChinaMob 80.75 -0.15 99.30 80.00 3.07 14.51 211618.42 Citic Ltd 11.50 0.06 12.78 10.66 2.74 9.70 42817.67 ExpScripts 61.55 -0.96 80.02 57.80 - 10.92 36946.25 TexasInstr 78.54 0.06 84.65 62.05 2.17 21.68 78251.27
Lukoil 2867 11.00 3582 2601 7.18 8.21 40461.48 RioTinto 3398.5 36.50 3718.5 2253.5 3.50 16.45 60329.57
ChinaPcIns♦ 31.70 -0.25 32.80 25.50 3.60 20.15 11260.2 Citic Secs♦ 15.76 -0.04 19.16 15.36 3.73 14.85 5886.65 ExxonMb 80.26 0.04 95.55 79.26 3.85 32.51 340061.74 TheTrvelers 126.50 -0.67 129.60 103.45 2.18 12.12 35346.1
MmcNrlskNckl 8492 119.00 11199 7677 8.62 14.94 22297.12 RollsRoyce 932.00 -4.50 943.90 635.00 1.26 -4.23 22060.28
ChMinsheng♦ 7.61 -0.02 9.48 7.33 4.24 4.94 6753.38 CK Hutchison 98.25 1.05 103.90 82.15 2.52 13.79 48510.43 Facebook 153.38 1.94 156.50 113.55 - 37.94 362710.36 ThrmoFshr♦ 178.04 0.55 178.29 139.07 0.35 31.53 69652.79
Novatek 638.30 -2.70 800.70 601.50 2.38 8.22 32157.18 RylDShlA 2041 -3.00 2295.5 1791 7.38 43.48 117528.97
ChMrchSecs RMB 17.28 0.01 20.09 15.57 2.36 18.64 12458.05 CNOOC♦ 8.52 -0.06 10.88 8.45 5.57-150.58 48687.16 Fedex 218.67 0.16 219.56 153.95 0.69 29.75 58466.88 TimeWrnr♦ 100.96 -0.28 102.45 74.27 1.64 18.59 78298.27
Rosneft 320.00 2.20 425.70 291.00 3.77 18.23 56271.56 Shire 4186.5 -138.00 5377 2707.19 0.58 111.38 48882.93
Chna Utd Coms RMB 7.47 - 8.05 3.89 0.78 554.42 23279.16 HangSeng 163.20 1.70 165.90 131.80 3.38 21.26 39934.57 FordMtr 11.28 0.02 14.04 10.67 5.12 5.53 44117.59 TJX Cos 69.12 -1.23 83.64 68.22 1.50 19.75 44463.26
Sberbank 154.90 2.74 185.34 130.35 0.23 13.31 55481.69 StandCh 812.40 9.60 821.60 566.90 - -69.23 34390.84
ChShenEgy♦■ 16.92 -0.06 20.60 13.42 2.21 12.66 7359.94 HK Exc&Clr 199.90 0.50 213.20 177.60 2.63 38.89 31510.73 Franklin♦ 45.69 0.27 45.79 32.94 1.71 14.33 25646.55 T-MobileUS 60.51 0.50 68.88 42.84 - 30.48 50273.88
Surgutneftegas 26.11 -0.30 33.09 24.09 - -10.84 15474.36 Tesco 171.05 0.55 219.40 153.00 - 211.17 18014.86
ChShpbldng RMB 6.21 - 8.14 5.87 - -84.20 16764.38 MTR♦■ 44.10 0.45 50.00 37.20 2.33 26.93 33380.95 GenDyn♦ 200.73 -0.53 205.17 139.10 1.60 19.00 60557.32 UnionPac 109.32 0.97 115.15 87.06 2.17 20.32 88269.26
Saudi Arabia (SR) Vodafone♦ 219.95 1.20 240.10 186.50 5.47 -32.84 75325.22
ChStConEng RMB 9.70 0.30 11.45 5.35 2.09 9.85 42336.48 SandsCh 34.40 0.20 39.30 25.25 6.05 27.88 35543.68 GenElectric♦ 25.98 -0.18 33.00 25.90 3.73 24.95 225565.94 UPS B 110.41 0.05 120.44 102.12 2.95 27.38 76047.13
AlRajhiBnk 65.00 -0.50 71.70 48.60 3.58 12.24 28165.17 WPP 1567 -2.00 1928.07 1486.02 3.08 14.51 25688.67
ChUncHK 10.84 0.40 12.10 7.75 1.84 202.36 33224.42 SHK Props 115.90 0.40 124.10 96.50 2.88 10.58 42962.12 GenMills♦ 53.58 -0.05 72.70 53.38 3.57 19.41 30921 USBancorp♦ 52.20 -0.26 56.61 39.84 2.16 15.38 87971.78
Tencent 271.60 2.60 288.40 178.50 0.17 47.71 329538.11 Natnlcombnk 50.50 -0.30 58.00 32.00 2.80 10.35 26931.9 United States of America ($)
CNNC Intl RMB 7.94 0.06 8.08 6.58 1.15 25.98 4937.52 GenMotors 35.04 0.10 38.55 29.27 4.46 5.27 52367.63 UtdHlthcre 187.38 -0.58 188.66 132.39 1.37 23.32 180570.9
SaudiBasic 101.40 -0.20 105.40 76.00 4.91 18.57 81115.68 21stC Fox A 28.14 0.24 32.60 23.33 1.32 16.68 29612.69
CSR♦ 6.87 -0.05 7.99 6.66 2.57 15.50 3843.43 India (Rs) GileadSci 69.51 0.26 88.85 63.76 2.86 7.14 90830.69 UtdTech 122.74 0.13 123.15 97.62 2.21 18.50 98338.66
SaudiTelec 74.00 -0.80 78.90 51.00 5.60 16.50 39464.56 3M 210.43 0.84 214.57 163.85 2.20 24.74 125677.12
Daqin RMB 8.90 0.04 8.94 5.98 5.13 15.94 19453.2 Bhartiartl 405.70 19.80 410.15 283.05 0.34 41.73 25130.18 GoldmSchs 225.62 0.34 255.15 148.31 1.19 11.69 88810.99 ValeroEngy 68.38 0.20 71.40 46.88 3.76 14.55 30581.68
Singapore (S$) AbbottLb 48.37 -0.08 49.59 37.38 2.22 52.83 83926.43
Gree Elec Apl 0.19 0.00 0.25 0.17 - -5.86 324.69 HDFC Bk 1676.35 9.15 1716 1158 0.54 34.57 66860.04 Halliburton 42.22 0.44 58.78 40.12 1.75 -10.48 36641.4 Verizon♦ 43.31 -0.17 56.25 43.18 5.46 14.08 176677.49
DBS 21.00 0.17 21.18 14.72 2.85 12.67 38545.99 Abbvie 72.21 0.18 73.67 55.06 3.29 19.11 114925.14
GuosenSec RMB 13.81 0.14 18.94 12.39 4.41 23.06 4456.78 Hind Unilevr 1096.25 -1.45 1129 781.95 1.54 51.85 36768.28 HCA Hold 85.74 -0.40 91.03 67.00 - 11.34 31458.4 VertexPharm 129.90 -0.45 137.26 71.46 - 180.40 32354.03
JardnMt US$ 64.10 -0.85 67.27 52.90 2.36 9.22 46349.66 Accenture 124.12 -0.09 128.47 108.83 1.92 17.86 82432.33
HaitongSecs 12.36 -0.08 15.24 12.28 4.30 14.32 5393.8 HsngDevFin 1638.85 9.70 1682.2 1183.15 0.90 26.48 40452.07 Hew-Pack 17.62 0.27 19.58 12.95 2.90 12.13 29651.95 VF Cp 56.38 -0.32 65.25 48.05 2.82 19.48 22577.76
JardnStr US$ 41.90 -0.77 43.78 29.33 0.72 8.62 46411.18 Adobe 142.34 0.12 147.45 95.34 - 52.56 70231.36
Hngzh HikVDT RMB 29.41 -0.72 40.16 22.61 1.07 34.11 31381.52 ICICI Bk 291.45 1.75 297.64 215.14 1.54 22.21 28960.19 HiltonWwde 62.01 0.25 67.79 46.09 1.29 87.38 20387.72 Viacom 33.64 0.44 46.72 32.68 4.12 9.41 11851.39
OCBC 10.80 0.11 10.95 8.27 3.40 12.52 32643.01 AEP 69.28 0.13 72.97 57.89 3.42 47.10 34065.81
Hunng Pwr♦ 5.43 -0.03 6.25 4.43 10.13 8.29 3266.72 Infosys 957.05 21.65 1196.05 901.00 2.70 15.36 34064.19 HomeDep 151.83 -0.40 160.86 119.20 1.86 23.02 181521.11 Visa Inc 95.08 1.16 96.60 74.79 0.66 45.98 175532.25
SingTel 3.90 0.04 4.36 3.59 4.51 16.22 45970.97 Aetna 154.00 0.12 155.15 104.59 0.67 46.49 51081.8
IM Baotou Stl RMB 2.38 - 2.44 1.96 - 128.32 7711.61 ITC♦ 333.30 -1.00 354.80 222.00 1.33 38.58 62762.77 Honywell 134.72 0.60 135.90 105.25 1.89 20.87 102702.2 Walgreen 77.05 -0.42 88.00 75.18 1.94 19.53 82450.93
UOB 23.31 0.09 24.02 17.51 3.06 12.24 27544.45 Aflac 77.76 -0.22 79.86 66.50 2.22 12.29 30858.79
In&CmBkCh♦ 4.87 -0.01 5.43 4.19 5.64 5.42 54099.6 L&T 1732.15 27.75 1833.95 1295.1 0.82 36.48 25053.82 HumanaInc 238.47 0.24 243.74 150.00 0.55 23.46 34414.06 WalMartSto 74.21 -1.13 80.48 65.28 2.69 16.96 223690.91
AirProd♦ 143.97 -0.04 150.45 129.00 2.52 20.28 31345.79
IndstrlBk RMB 17.12 0.03 17.58 14.99 3.62 5.96 47955.11 OilNatGas 162.40 2.80 211.80 144.67 2.06 16.92 32294.96 South Africa (R) IBM 153.43 0.49 182.79 147.79 3.75 12.28 144147.01 WellsFargo 55.50 -0.24 59.99 43.55 2.82 13.49 277351.15
Alexion 123.09 0.03 145.42 96.18 - 56.98 27640.66
Kweichow RMB 454.47 8.50 485.00 287.56 1.38 31.33 83935.53 RelianceIn 1492.85 1.70 1505 930.00 - 14.44 75217.99 Firstrand 48.11 -0.02 54.46 42.78 4.81 11.00 20081.69 IllinoisTool♦ 146.33 0.27 150.29 106.69 1.76 23.91 50548.12 Williams Cos 30.41 -0.01 32.69 20.44 5.75 -51.24 25122.88
Allegran 241.90 1.21 261.27 184.50 0.30 -22.16 81154.88
Midea 1.65 -0.01 1.87 1.62 6.36 22.16 45.41 SBI NewA 285.55 5.45 315.30 216.50 0.90 49.74 38195.27 MTN Grp 116.58 0.83 151.50 104.76 9.48 -79.14 16345.87 Illumina 169.33 -2.78 189.48 119.37 - 33.25 24722.18 Yahoo - - - - - - -
Allstate 89.05 -0.14 90.74 66.55 1.54 18.32 32460.33
New Ch Life Ins 41.20 -0.40 43.20 26.95 - 21.80 5453.05 SunPhrmInds 563.70 14.70 854.95 492.65 0.18 19.01 20957.84 Naspers N 2517.5 42.79 2846.5 1925.98 0.20 89.24 82100.85 Intcntl Exch 65.77 -0.15 66.90 50.85 1.08 26.66 38940.22 Yum!Brnds 73.39 -0.10 75.45 59.57 2.42 26.33 25556.63
Alphabet 947.36 6.55 1008.61 708.11 - 32.68 281960.13
PetroChina♦■ 4.77 -0.07 6.38 4.72 1.14 27.26 12881.09 Tata Cons 2434.95 103.00 2744.8 2051.9 1.95 17.85 72228.79 South Korea (KRW) Intel 33.47 -0.41 38.45 33.23 3.20 14.09 157632.36 Venezuela (VEF)
Altria 74.39 0.14 77.79 60.82 2.66 30.01 143695.1
PingAnIns 54.80 0.70 56.25 33.60 1.18 12.98 52236.26 Indonesia (Rp) HyundMobis 243000-2500.00 293500 212000 1.52 10.54 20579.92 Intuit♦ 131.84 -0.06 143.81 103.22 1.00 37.89 33779.64 Bco de Vnzla 800.00 -55.00 855.00 95.00 - - 1106.58
Amazon 996.70 17.94 1017 710.10 - 182.47 476398.66
PngAnBnk RMB 9.59 0.12 10.26 8.54 1.35 7.38 23853.35 Bk Cent Asia 18300 -200.00 18725 13250 0.99 20.70 33677.02 KoreaElePwr 41800 -700.00 63600 40050 5.01 4.39 23346.18 John&John 132.19 -0.35 137.00 109.32 2.49 21.60 356101.03 Bco Provncl 20000 -500.00 20500 2200 - 23.10 817.90
AmerAir 52.38 -0.65 53.38 29.70 0.79 12.33 25801.8
Pwr Cons Corp RMB 8.01 0.11 9.00 5.57 0.98 16.51 11305.44 SK Hynix 67300 700.00 69600 30550 0.94 10.96 42626.21 JohnsonCn 43.34 0.18 46.17 37.78 2.69 -31.07 40652.94 Mrcntl Srvcs 50000 500.00 50000 4785 0.05 68.00 1154.49
Israel (ILS) AmerExpr♦ 84.17 -0.16 85.88 59.50 1.53 14.77 75229.39
SaicMtr RMB 31.48 -0.57 32.84 19.76 4.39 10.68 51029.08 SmsungEl 2433000 40000 2445000 1449000 1.54 13.13 276593.39 JPMrgnCh♦ 93.25 -0.60 94.51 61.33 1.95 16.24 331298.95
TevaPha 113.00 -2.20 217.70 99.40 4.401545.66 32461.85 AmerIntGrp 63.02 -0.34 67.47 52.39 1.95 97.90 58107.19
ShenwanHong 0.22 -0.01 0.35 0.16 - -3.65 245.13 Spain (€) Kimb-Clark 127.74 0.94 136.87 111.30 3.00 20.49 45338.52 Closing prices and highs & lows are in traded currency (with variations for that
Italy (€) AmerTower♦ 131.96 -1.18 137.12 99.72 1.69 61.97 56084.25
ShgPdgBk RMB 12.53 -0.07 13.52 11.16 3.21 6.67 51772.47 KinderM 19.05 -0.13 23.36 18.31 4.60-120.21 42516.87 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 4.80 0.08 4.99 3.57 3.26 16.93 55552.67 BBVA 7.52 -0.01 7.89 4.76 4.75 13.66 57119.92 Amgen 172.16 0.73 184.21 133.64 2.48 15.89 126606.31
Sinopec Corp♦ 5.79 -0.03 6.57 5.18 2.83 10.41 18906.99 Kraft Heinz 83.35 0.31 97.77 79.69 2.93 28.84 101489.71 based on intraday trading over a rolling 52 week period.
ENI 13.00 0.04 15.92 12.18 6.01 -5.00 53804.22 BcoSantdr 5.81 - 6.25 3.25 3.41 14.32 96470.5 Anadarko 43.54 0.18 73.33 42.58 1.41 -4.41 24397.17
Sinopec Oil RMB 3.30 - 4.51 3.02 - -2.92 1367.37 Kroger 22.75 -0.41 37.97 20.46 2.03 13.78 20414.63 ♦ ex-dividend
Generali 15.05 0.05 16.00 9.89 4.61 11.83 26768.88 CaixaBnk 4.27 0.01 4.47 1.94 3.39 24.68 29080.2 Anthem 191.79 0.18 194.94 114.85 1.33 22.63 50821.71
Denmark (kr) Iberdrola 6.72 0.05 7.30 5.53 5.96 16.43 47783.55 L Brands 44.03 -1.08 79.67 43.04 5.42 11.68 12629.71 ■ ex-capital redistribution
IntSPaolo 2.86 0.02 2.90 1.58 4.72 24.20 51657.07 Aon Cp 135.32 0.31 137.28 105.35 0.99 25.19 35463.31
DanskeBk 256.80 1.50 259.40 164.80 - - - Inditex 33.75 0.11 36.90 29.30 1.41 34.15 119774.31 LasVegasSd 62.18 0.41 66.22 43.51 4.78 26.28 49263.22 # price at time of suspension
Luxottica 51.35 -0.10 56.90 39.92 1.67 30.09 28359.08 Apple 144.85 0.67 156.65 96.05 1.62 16.41 755224.72
MollerMrsk 13710 530.00 13720 8285 - - - Repsol 13.48 0.04 15.22 10.81 4.50 12.42 22963.8 LibertyGbl 31.78 0.32 37.69 28.12 - 13.92 7536.93
Unicred 17.52 0.02 30.80 11.93 3.32 -1.81 44408.4 ArcherDan 41.14 -0.10 47.88 40.40 3.05 16.95 23382.21
NovoB 274.00 0.70 384.80 218.20 - - - Telefonica 9.01 -0.04 10.63 7.61 7.93 19.85 51715.99 Lilly (E) 82.40 0.11 86.72 64.18 2.56 38.70 90919.23
AT&T 37.01 0.03 43.48 36.10 5.43 16.93 227537.48

Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Fuji Hvy Ind 4118.00 4086.00 32.00 0.78 332.00 8.8 10.20 L Brands 44.03 45.11 -1.08 -2.39 -11.54 -20.8 -15.81 Jul 10 date Coupon S* M* F* price yield yield yield US Jul 10 date Coupon S* M* F* price yield yield yield US
IM Baotou Stl 2.38 2.38 0.00 0.00 0.19 8.7 9.68 ShenwanHong 0.22 0.23 -0.01 -6.09 -0.04 -16.9 -20.00 High Yield US$ US$
RelianceIn 1492.85 1491.15 1.70 0.11 112.85 8.2 11.77 Tesla Mtrs 316.73 313.22 3.51 1.12 -35.89 -10.2 -11.46 Navient Corporation 03/20 8.00 B+ Ba3 BB 111.62 3.49 -0.02 -0.58 2.10 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 113.54 4.43 -0.02 -0.12 2.06
Bhartiartl 405.70 385.90 19.80 5.13 26.00 6.8 10.30 EDF 8.64 8.74 -0.10 -1.11 -0.91 -9.5 -10.72 High Yield Euro FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 120.65 4.45 -0.02 0.02 2.08
PingAnIns 54.80 54.10 0.70 1.29 3.35 6.5 5.28 Devon Energy 29.73 29.54 0.19 0.64 -3.05 -9.3 -8.66 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - NationsBank Corp. 03/28 6.80 BBB Baa3 A- 121.17 4.35 -0.02 0.13 1.98
Daqin 8.90 8.86 0.04 0.45 0.51 6.1 6.33 Hngzh HikVDT 29.41 30.13 -0.72 -2.39 -2.89 -8.9 -5.80 Oklahoma Gas & Electric Co. 04/28 6.50 A- A1 A+ 121.57 4.05 -0.02 -0.06 1.68
BHPBilltn 24.52 24.59 -0.07 -0.28 1.24 5.3 4.16 In&CmBkCh 4.87 4.88 -0.01 -0.20 -0.40 -7.6 -6.70 Emerging US$ Merrill Lynch & Co., Inc. 06/28 6.75 BBB+ Baa1 A 123.52 4.10 -0.02 0.07 1.73
Potash 22.23 21.04 1.19 5.66 1.08 5.1 -2.93 AgricBkCh 3.41 3.46 -0.05 -1.45 -0.28 -7.6 -5.01 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 United Utilities PLC 08/28 6.88 BBB- Baa1 A- 119.51 4.66 -0.02 0.10 2.29
Sberbank 154.90 152.16 2.74 1.80 7.40 5.0 3.22 ChUncHK 10.84 10.44 0.40 3.83 -0.76 -6.6 -4.24 Brazil 01/18 8.00 BB Ba2 BB 102.09 3.95 -0.16 0.57 2.56
Peru 03/19 7.13 BBB+ A3 BBB+ 109.39 1.56 -0.01 0.06 0.17 Euro
Toyota 6187.00 6157.00 30.00 0.49 294.00 5.0 5.98 Bk China 3.59 3.61 -0.02 -0.55 -0.24 -6.3 -7.47 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 101.08 2.50 0.00 0.00 -
Priceline 1931.72 1918.50 13.22 0.69 88.59 4.8 4.84 Anadarko 43.54 43.36 0.18 0.42 -2.56 -5.6 -9.20 Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84
Brazil 01/22 12.50 BB Ba2 BB 113.05 8.90 -0.03 -0.22 6.97 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 102.28 2.38 -0.04 0.05 -
MollerMrsk 13700.00 13180.00 520.00 3.95 610.00 4.7 8.64 SimonProp 156.16 156.64 -0.48 -0.31 -9.02 -5.5 0.28 Citigroup Inc. 02/30 4.25 BBB Baa3 A- 117.42 2.33 -0.04 0.05 -
Amazon 996.70 978.76 17.94 1.83 43.04 4.5 1.86 ConocPhil 43.19 43.00 0.19 0.44 -2.47 -5.4 -3.53 Colombia 03/23 2.63 BBB Baa2 BBB 96.99 3.24 -0.03 0.23 1.31
Poland 03/23 3.00 BBB+ A2 A- 100.98 2.83 -0.02 0.35 0.91 HBOS plc 03/30 4.50 BBB- Baa2 A- 115.54 2.64 -0.04 0.24 -
Avago Tech 239.98 239.62 0.36 0.15 10.22 4.4 -1.48 GenElectric 25.98 26.15 -0.18 -0.67 -1.48 -5.4 -7.03
Turkey 03/23 3.25 - Ba1 BB+ 83.85 6.71 -0.10 -0.39 4.78 Yen
Netflix 152.64 150.18 2.46 1.64 6.47 4.4 -3.42 MediaTek 247.00 250.00 -3.00 -1.20 -13.50 -5.2 -1.40
Russia 05/26 4.75 - - BBB- 103.04 4.38 -0.02 0.30 2.01 Enagas Transportes, S.A.U. 09/39 3.23 A- Baa2 A- 106.57 2.85 0.00 0.01 -
Nppn Stl 2649.00 2630.00 19.00 0.72 111.00 4.4 9.64 Sinopec Corp 5.79 5.82 -0.03 -0.43 -0.30 -4.9 -10.09
SBI NewA 285.55 280.10 5.45 1.95 11.90 4.3 -1.04 Perrigo 72.22 72.46 -0.25 -0.34 -3.54 -4.7 0.94 Turkey 03/27 6.00 - Ba1 BB+ 104.51 5.47 -0.02 0.35 3.10 £ Sterling
GuosenSec 13.81 13.67 0.14 1.02 0.56 4.2 5.50 Petrobras 12.68 12.68 0.00 0.00 -0.60 -4.5 -7.98 Emerging Euro Electricite de France (EDF) 05/28 6.25 A- A3 A- 132.52 2.75 -0.04 0.23 0.38
Swedbank 213.50 212.50 1.00 0.47 8.20 4.0 0.85 Target 50.31 51.07 -0.76 -1.49 -2.34 -4.4 -11.52 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 HSBC Holdings plc 08/28 2.63 A A1 AA- 99.88 2.64 -0.04 0.19 0.27
RollsRoyce 932.00 936.50 -4.50 -0.48 35.50 4.0 2.81 ImpOil 36.12 36.17 -0.05 -0.14 -1.68 -4.4 -4.95 Mexico 02/20 5.50 BBB+ - BBB+ 113.51 0.28 -0.01 0.04 -1.11 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.43 1.40 -0.02 0.13 -0.53 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BB+ Baa2 BBB- 108.83 2.07 -0.04 0.04 -0.30
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

Jul 10 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jul 10 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.50-0.75 14-12-2016 1.00 0.50-0.75 0.25-0.50 Index change change change 1 month 1 year VIX 11.01 -0.18 11.19 23.01 9.37 Jul 10 Price £ Yield Day Week Month Year High Low £m
US Prime 4.25 16-12-2008 3.75 3.50 3.50 Markit IBoxx VXD 10.95 -0.10 11.05 23.23 3.59 Tr 8.75pc '17 101.07 0.14 55.56 27.27 600.00 -26.32 105.16 100.00 11.14
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 181.15 -0.14 -0.84 4.58 -1.02 -2.27 VXN 16.83 0.02 16.81