WEDNESDAY 8 JANUARY 2020 WORLD BUSINESS NEWSPAPER ASIA

Called to account After Saatchi Farming in Detroit

It’s time to end Big Four’s consulting Downfall of the once mighty An unlikely pursuit amid America’s
days — JANE FULLER, PAGE 9 ad agency — BIG READ, PAGE 7 urban decay — NOTEBOOK, PAGE 8

Stampede kills Briefing

56 as Iranians i Slim pickings for Goldman consumer unit
The US bank has revealed that its consumer arm
bury general generated 3 per cent of pre-tax earnings in the first
nine months of 2019, highlighting the Wall Street
group’s reliance on its traditional business.— PAGE 11
Mourners gather around the coffin of
Qassem Soleimani in Kerman yester- i Anheuser-Busch to replace finance chief
day, before a stampede at the senior The brewer of Budweiser and Stella Artois is set to
Iranian general’s funeral killed at least replace Felipe Dutra, its long-serving chief financial
56 and injured hundreds more. officer, as it seeks to revive its fortunes and share
The burial of Iran’s top military price. A decision could come in February.— PAGE 11
commander, who was assassinated by a
US drone strike in Baghdad last week, i Sánchez confirmed in historic coalition
was delayed by several hours after the Parliament has confirmed
deadly stampede as tens of thousands of Socialist Pedro Sánchez as
mourners squeezed into the streets of prime minister by a wafer-thin
his hometown. margin, ushering in the first
Mike Pompeo, the US secretary of coalition since the 1975 return
state, again defended the strike in Wash- of democracy in Spain.— PAGE 4
ington yesterday, saying attacks alleg-
edly planned by Soleimani “were going i UBS set to axe 500 wealth managers
to lead, potentially, to the death of many Switzerland’s biggest bank is preparing to cut 500
more Americans”. jobs in wealth management, the latest move by new
Reports page 2 divisional head Iqbal Khan to stir a revival. Several
Atta Kenare/AFP
units will be merged in the shake-up.— PAGE 12

i Shoppers drive eurozone inflation

Central banks low on ammunition

Strong pre-Christmas spending has helped to push
inflation to a six-month high, adding to signs that
the economy has stabilised. Consumer prices rose
1.3 per cent in December from a year ago.— PAGE 4

to fight recessions, warns Carney

i China tourism boosts Moscow airport
Connections between Europe and Asia, boosted by
a surge in tourism, have buoyed projections for
Sheremetyevo, which has targeted a doubling in
traffic to 100m passengers a year.— PAGE 3

i Tax boom fuels Irish spending debate

3 Outgoing BoE chief highlights liquidity trap 3 Call to exploit low-carbon opportunities
LIONEL BARBER AND
CHRIS GILES — LONDON
The global economy is heading towards
a “liquidity trap” that will undermine
central banks’ efforts to avoid a future
recession, according to Mark Carney,
governor of the Bank of England.
A liquidity trap occurs in the rare
occasions when monetary policy loses
all effectiveness to manage economic
swings and looser policy does not
encourage any additional spending.
In a wide-ranging interview with the
Financial Times, the outgoing governor
warned that central banks were running
out of the ammunition needed to com-
bat a recession.
“It’s generally true that there’s much
less ammunition for all the major cen-
tral banks than they previously had and
I’m of the opinion that this situation will
persist for some time,” he said.
That meant there was a need to look
for supplements to monetary tools,
including interest rate cuts, quantitative
easing and guidance on future interest
rates, he said. “If there were to be a
deeper downturn, [that requires] more
stimulus than a conventional recession,
then it’s not clear that monetary policy
would have sufficient space.”
Mr Carney echoed other central
bankers, such as the European Central
Bank’s Mario Draghi and his successor,
Christine Lagarde, in recommending
that governments consider fiscal policy
tools, such as tax cuts or public spending
increases when tackling a downturn.
However, he accepted “it’s not [central
bankers’] job to do fiscal policy”.
Bumper payments by tech and pharma groups have
spurred a debate that threatens to overshadow this
year’s election, with all parties facing calls to solve a
The governor said monetary policy a substitute for effective policies at the housing crisis and healthcare failings.— PAGE 4
was not yet a spent force internationally, national and international level.
with US and eurozone interest rate cuts He predicted that the City could bene-
last year encouraging borrowing and fit from financing the transition to a low- Datawatch
spending. “We’re starting to see that carbon economy in place of some EU
stimulus flow to the global economy.” activity. “This happens to be a huge
He insisted that he was not leaving his Mark Carney: commercial opportunity for the City of Going green More people are
successor, Andrew Bailey, without any ‘We have London and the UK financial sector writ % likely to do an activity to reduce willing to take
tools in his armoury. The BoE could still a statutory large.” their carbon footprint in 2020 fewer flights in
cut interest rates from 0.75 per cent to responsibility The Bank of England has led other Recycle more order to reduce
their carbon
close to zero and “supplement mone- to identify central banks on taking a firmer stance Use energy-
footprint than are
tary policy with macroprudential tools” the major risks on combating the financial risks to efficient products
willing to adopt
by relaxing banks’ capital requirements to financial banks and insurance companies that Fly less
a meat-free diet.
to enable them to lend more. stability. We stem from global warming. Buy ethically-made/ Cutting a single
secondhand clothes
Mr Carney predicted that the City of can’t dodge that’ Mr Carney has been criticised for 4,000-mile flight
Drive less
London could profit from the “huge straying beyond his mandate with this is gauged to save
commercial opportunity” of helping to position but he dismissed those con- Change diet the same amount
finance and accelerate action to miti- cerns. “Anybody who says that doesn’t 0 20 40 60 as not eating
gate global warming — although he rec- know the breadth of the powers of the Sources: YouGov; Shame Plane meat for a year
ognised that the financial sector was not Bank of England,” the governor said.

Japan pushes to arrest Ghosn’s wife as

ex-car chief promises evidence of coup
LEO LEWIS AND KANA INAGAKI — TOKYO “Nine months ago, Carole Ghosn vol- to Lebanon, has rejected the account of
CHLOE CORNISH — BEIRUT
untarily went back to Japan to answer a British former soldier in relation to the
Prosecutors in Tokyo have issued an prosecutors and was free to go without escape.
arrest warrant for the wife of Carlos any charges,” said the Ghosn family’s The Financial Times revealed on
Ghosn as the Japanese justice system spokeswoman, adding: “The issuance of Monday that a company linked to Mike
Maduro seeks to benefit responded aggressively to the former this warrant is pathetic.” Douglas had made a $175,000 payment
from Venezuela chaos Nissan chairman’s escape from its Obtaining a warrant for Mrs Ghosn for the aircraft that whisked Mr Ghosn
clutches last month. may be designed to capitalise on her sta- out of Osaka.
Analysis i PAGE 3 tus as a US passport holder. Japan has no Mr Douglas, whose main business is
The prosecutors alleged yesterday that extradition treaty with Lebanon but called SKA International, denied any
Mrs Ghosn gave false testimony last does have one with the US. involvement in Mr Ghosn’s escape, say-
Australia A$7.00(inc GST) April when she was questioned by In the face of limited options to bring ing his company had “ongoing businesss
China RMB30 judges over payments made by a Nissan Mr Ghosn back, another government for cargo” with MNG.
Hong Kong HK$33 subsidiary to an Omani dealer. official did not rule out taking economic Yesterday, however, MNG said it had
India Rup220 In a move that sent shudders through measures to apply pressure on Lebanon. only limited dealings with Mr Douglas.
Indonesia Rp45,000 Tokyo, Mr Ghosn previewed a press con- “We are assessing Lebanese law to see “We can find no record of any significant
Japan ¥650(inc JCT) ference he is to give today in Beirut, tell- whether various diplomatic efforts are business dealings between the SKA
Korea W4,500
ing US television that he would show possible, and we will be working closely group and MNG Jet,” it said.
Malaysia RM11.50
“evidence” and reveal the names of Nis- with foreign ministry officials in consid- Additional reporting by Laura Pitel and
Pakistan Rupee 350
Philippines Peso 140
san executives and Japanese officials ering our response,” the official said. Simon Kerr
Singapore S$5.80(inc GST) who he claims plotted the coup that Meanwhile, MNG Jet, the Turkish Letters page 8
Taiwan NT$140 brought him down. group whose aircraft carried Mr Ghosn Mystery of Ghosn’s escape page 14
Thailand Bht140
Vietnam US$4.50

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2 ★ FINANCIAL TIMES Wednesday 8 January 2020

INTERNATIONAL

General’s killing Burial

Rift opens between Trump and Pentagon Stampede on

fourth day
Military uneasy at possible abide by the laws of armed conflict,
which prohibit targeting such sites.
Tension between the White House
and defence department is on the rise,
yes, we’ve got a lot of vulnerabilities out
there because of the troops,” said one
cific knowledge” of the legal justifica-
tion for the strike, he was sure the
of military
expulsion from Iraq and
threat to Iran cultural sites
Mark Milley, the chairman of the joint
chiefs of staff, was also forced to admit
according to four former officials in
touch with senior leadership at the Pen-
former Pentagon official.
“Even though Milley and Esper are
Trump administration would have con-
ducted a thorough review.
chief’s funeral
KATRINA MANSON AND JAMES POLITI
WASHINGTON
that a draft letter penned by a senior
military commander in Iraq pointing to
preparations for a full withdrawal of
tagon. Some were surprised by the deci-
sion to strike Soleimani in the first place
more closely aligned with Trump on
policy than [former US defence secre-
tary Jim] Mattis was, all administration
Mr Trump’s tweets suggesting that
the US might target cultural sites struck
a nerve at the Pentagon because doing
kills dozens
troops from the country had been circu- officials find themselves dancing on the so would violate international laws of
ANDREW ENGLAND — LONDON
Donald Trump’s handling of the fallout lated in error, a sign of frantic contin-
‘We are seeing a great head of a pin when the president wants armed conflict, by which the US has NAJMEH BOZORGMEHR — TEHRAN
from his strike against Iranian general gency planning in response to Mr deal of frustration and to take strong action,” said Guy vowed to abide. A violation by Washing- MICHAEL PEEL — BRUSSELS
Qassem Soleimani has created tension Trump’s sudden escalation of tension in Snodgrass, a former speech writer to Mr ton could hurt its efforts to persuade
with Pentagon officials who are the Middle East.
confusion because Trump Mattis. other countries to live by the same rules.
More than 50 people were killed in a
stampede on the fourth day of funeral
responding to fears of an expulsion of “What we are seeing is a great deal of does not abide by rules’ The Pentagon did not immediately Robert O’Brien, Mr Trump’s national proceedings for Qassem Soleimani as
troops from Iraq and the threat of frustration and confusion because respond to reports of tension between security adviser, has defended the foreign ministers from the UK, Ger-
bombing cultural sites in Iran. Trump does not abide by rules and pro- and wary of its consequences, according the defence department and the White attack on Soleimani on the grounds that many and France met in Brussels for
The unease within the US military cedures,” said Michael Rubin, a resident to these former officials and multiple US House. he was plotting to kill a significant emergency talks on the Iran crisis.
was laid bare on Monday as Mark Esper, scholar at the American Enterprise media reports. Mr Trump’s senior national security number of American diplomats and sol-
defence secretary, contradicted Mr Institute, a conservative think-tank. “There has been divided counsel leadership will face further scrutiny diers “in the coming days”, according to The mourners who were crushed were
Trump’s call to target culturally signifi- “We have a potential strategic gain [with inside the [defence department] over today when they brief the Senate on the comments on Fox News. among hundreds of thousands of people
cant sites in response to any retaliation Soleimani’s killing], but the political killing Soleimani for a long time, but intelligence that led to the strike. Mike But some in the military fear that who gathered at the Iranian military
from Tehran for the strike on Soleimani. bungling of the aftermath threatens to probably the majority view has been Pompeo, US secretary of state, said yes- the consequences were not fully chief’s home town of Kerman, where he
Mr Esper said instead that the US would strip away the advantage”. don’t poke the hornet’s nest, because terday that while he did not have “spe- considered. is to be buried. Local officials said the
deaths of 56 people and injuries to more
than 200 forced the postponement of
the burial.
Soleimani’s assassination in a US air
Middle East. Soleimani assassination strike last week has provoked an out-
pouring of grief in Iran unseen since the

Iran’s desire for revenge tempered by fear of war death of Ayatollah Ruhollah Khomeini,
leader of the Iran revolution, in 1989,
and pushed the Islamic Republic to the
brink of all-out conflict with the US.
Iran has promised to retaliate and
pulled back from all its commitments
Even hardliners say Tehran under the 2015 nuclear accord.
must strike back but avoid a Diplomats and analysts think it is
increasingly likely the UK, Germany
full-blown conflict with the US and France, the European signatories to
the accord the US abandoned in 2018,
will trigger the dispute resolution mech-
NAJMEH BOZORGMEHR — TEHRAN
anism in the deal, which could result in
As millions of Iranians poured on to the the reimposition of UN sanctions.
streets of Tehran to mourn the death of European observers say the dispute
military commander Qassem Soleim- process, which can be stretched out,
ani, the country’s supreme leader, Ayat- might provide a last opportunity to save
ollah Ali Khamenei, faced a difficult the deal by allowing a final chance for
question: how to satisfy the Islamic diplomacy and thereby avoiding the
regime’s desire for revenge for the US snapback of sanctions.
killing, while avoiding a war. Heiko Maas, Germany’s foreign min-
During four days of mourning, huge ister, said the Europeans believed the
crowds have demanded retribution for agreement was important but “wouldn’t
the assassination last week of their most just stand by and watch” as Iran
revered military leader. Publicly, the announced its withdrawal. “We can’t
regime has issued bellicose statements. shrug off announcements that commit-
But in private, even hardliners have said ments are no longer being met,” he said.
Tehran must strike back but avoid a But relations between Iran and the
full-blown conflict. European powers are fraying. Iran’s for-
“We cannot ignore this aggression eign ministry summoned the UK
easily and have to prevent the US from ambassador over the British govern-
repeating its rogue behaviour,” said ment’s public stance on Soleimani’s kill-
Hamid-Reza Taraghi, a politician close ing, while the UK said it was moving
to Iran’s hardline forces. “But our strat- non-essential staff out of Baghdad in
egy is retaliation in such a way that we neighbouring Iraq because of height-
do not go to a war.” ened security worries.
Washington and Tehran have been Concerns about a deterioration in
engaged in a game of brinkmanship security in Iraq and potential retaliatory
since the US withdrew from the Iranian attacks by Tehran on foreign assets
nuclear deal in 2018. In June, Iran shot United: Iranian emotions and the expediency of the region is not little and should not be ‘Iran and of the immediate pressure to act and there are increasing.
down a US drone and then seized a Brit- lawmakers raise political system which is not to mili- underestimated,” the insider said. “It is “put off the risk of war”, the politician Jens Stoltenberg, the Nato secretary-
ish-flagged tanker in July. In September, their hands to tarily retaliate.” similar to the months before the Islamic the US have said. general, spoke by phone with Adel
it was blamed by Washington for air vote yesterday Iran’s immediate response is more revolution when Imam Khomeini [the never been Brigadier Gen Esmail Ghaani, Soleim- Abdul Mahdi, Iraq’s prime minister,
strikes against Saudi Arabia’s biggest oil in parliament likely to include efforts to reduce US founder of the revolution] had one sim- ani’s successor as head of the Quds force after the military alliance suspended its
installation. for a bill influence in the Middle East in other ple slogan ‘Shah must go’ and he left.” this close of the Iranian Revolutionary Guard, training mission in the country.
But the elimination of a senior mili- designating all ways, analysts and regime insiders said. Mr Taraghi, the hardline politician, to a war’ said on Monday Iran would remove the Mr Stoltenberg “conveyed that Allies
tary commander in targeted US air US forces as Tehran has already pulled back from all suggested that the US also wanted to US from the region “in various steps”. have called for restraint and de-escala-
strikes was an unexpected and unprece- ‘terrorists’ its commitments under the 2015 avoid a war. “If Trump were serious in The period of mourning is now tion, and for Iran to refrain from further
dented escalation that means Tehran Icana News Agency /AFP/
Getty Images
nuclear accord and on Sunday exercised his threats, why has he sent 16 coun- expected to continue for longer after provocations”, Nato said.
must proceed more carefully, Iranian its influence in Iraq’s parliament to help tries’ representatives to beg us not to hit mourners were crushed to death yester- It added that the alliance was pre-
analysts said. The previous brinkman- pass a vote to expel US forces from the back?” he said. day in the city of Kerman, where huge pared to resume training when condi-
ship was based on a calculation that country in retaliation for the air strikes. If Iran does retaliate with force, it will crowds prevented Soleimani’s burial tions permitted, as the work was crucial
Donald Trump did not want another Iran’s parliament passed a bill yesterday do so directly and not through its prox- from taking place. to help local forces counter interna-
war in the Middle East. to increase the budget of the Quds force ies in the likes of Lebanon, Iraq, Syria or More than 50 people were killed and tional terrorist groups including Isis.
Now the US president has threatened by €200m over the next two months. Yemen, Mr Taraghi added. “Their deci- 200 injured in the stampede, according Germany also reduced the presence of
to hit more than 50 targets in Iran, The vote was non-binding but if Iran sion to retaliate is theirs. We will need to to local authorities. its own troops in Iraq, moving 35 sol-
including cultural sites, if the Islamic could force the US out of Iraq — where act ourselves, separate from them.” Ultimately, the decision on how to diers from Baghdad yesterday and a
republic retaliates. the Americans have invested hundreds Pro-reform forces in Iran warn that respond will fall to the supreme leader. military base north of the capital to
“This extremely complicated situa- of billions of dollars since ousting any retaliation is too risky with unpre- “My father believed obeying the Kuwait and Jordan on Monday night.
tion is not only a dilemma for the Saddam Hussein in 2003 — it would be dictable consequences. supreme leader’s absolute authority is The move was due to the “temporary
supreme leader but the whole [Iranian] considered a big victory for Iranian for- “Iran and the US have never been this the pre-requisite to piety,” Soleimani’s cessation of the training mission and the
system,” said one Iranian analyst, who eign policy, according to one regime close to a war,” said one reformist politi- daughter, Zeinab, told mourners. “We current security situation”, the German
asked not be identified. “Iranian leaders insider. cian. The “massive funerals” of the last will sacrifice ourselves, so that you defence ministry said.
are stuck between addressing public “Iran’s call for the US to leave the few days would hopefully release some [Khamenei] do not feel alone.” Additional reporting by Tobias Buck

Trade negotiations
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription France and US set deadline to resolve digital tax dispute
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
VICTOR MALLET — PARIS European Commission will stand Mnuchin saying the US had “serious negotiate a deal and Donald Trump and
KIRAN STACEY — WASHINGTON
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
together with France and all other concerns” about plans about a proposed Robert Lighthizer, the US trade repre-
HMRC warns Lloyd’s of Brussels Insurance market
to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

France and the US have given them- member states who wish to have the new system of international corporate sentative, eager to ignore international
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

sovereign right to impose digital taxa- taxation. institutions while punishing France and
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE
selves two weeks to resolve a bitter
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
TECHNOLOGY IS
being swamped i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
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

tion on companies in a fair way.” Paolo Gentiloni, the EU’s economy the EU with trade sanctions.
i Emerging nations in record debt sales Warning: this article may be

trade dispute over a new French digital

FT WEEKEND MAGAZINE
FEBRUARY 4 2017

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
How To Spend It
France and other European nations, commissioner, responded to the US One official in Paris with knowledge of
A survey has revealed that a
3 Fivefold rise in declarations expected record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen

tax targeting big tech companies such

JAMES BLITZ — WHITEHALL EDITOR adjust its negotiation position with the in London. Work began on

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

fresh tax probe

including the UK, argue big tech compa- move by saying the bloc would be ready the digital tax talks at the OECD said Mr
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

as Google and Amazon, Bruno Le

mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

nies have not been paying fair levels of to revive its own plans — originally Trump did not want to go before the US
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 committee saying the programme had The bank has unveiled a range of gender-neutral it followed “a strategy offull client tax

Maire, the French finance minister,

RALPH ATKINS — ZURICH
increase in declarations expected at been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
British ports when the UK leaves the EU. means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

FINANCIAL TIMES
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
apparent in a number ofkey areas”. Credit
needs Suisse hascustomers.
of transgender been targeted by
— PAGE 20 HM Revenue & Customs said it had
HMRC said last night: “[CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
and it will be able to support frictionless back Switzerland’s attempts to clean up dering by “a global financial institution
Datawatch

Theresa May announced in January that
Brexit would include departure from
tax on profits generated in some of their pushed by France but ultimately foiled Senate less than a year before an elec-
international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
the EU . . . Internal ratings are designed
Terror attacks inwith
co-operating western Europe after
authorities
Japan: Nikkei Tokyo Newspaper Printing Center, Inc.,
The Swiss bank said yesterday it was tax authority added: “The international
reach
itsattacks — of this investigation sends a clear The lure of the exotic

said yesterday.
both trading blocs. HMRC handles 60m to make sure that each project gets the Recent
declarations a year but, once outside the focus and resource it requires for suc- offices in London, Paris and Amsterdam notably the message
2011 that there is no hiding place for
customs union, the number is expected cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair
“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
parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

18th Floor, Nan Fung Tower

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-

1-10-5, Shinonome, Koto-Ku, Tokyo 135-0062

likely to throw a sharper spotlight on
while Australia’s revenue department and Nice, and the while French officials said their
probe;
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

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

Central, Hong Kong Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14 western Europe
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.

Representative; Hiroko Hoshino; ISSN 0915-9460

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

Mr Le Maire, faced with the imminent those profits to tax havens. wide digital tax if the OECD talks failed. that would see higher taxes imposed on
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
trap
banker loses job over WhatsApp boast
EU’s judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

South Korea: Maeil Business Newspaper, 30-1, 1-Ga,

evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether-
lands, France and the UK. The bank said in Paris
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
How high earners can evade
a pension headache — FT MONEY

prospect of a new round of US sanctions Mr Le Maire, who says France will French officials have been frustrated US corporations. “The problem is not
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to

Subscriptions and
JENNIFER THOMPSON — LONDON

A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
Shutdown risk as border
regulators cracking down on commu-
Pil-Dong, Jung-Ku,
stance on Brexit Seoul, 100-728
Christopher Niehaus, a former Jeffer- ban people from installing apps on their
ies banker, passed confidential client private phones.
Brussels takes tough
information to a “personal acquaint- Andrew Bodnar, a barrister at Matrix
ance and a friend” using WhatsApp, Chambers, said the case set “a precedent
according to the FCA. The regulator said in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
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”.

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

Singapore: Singapore Press Holdings Ltd, 2 Jurong

avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staff’s communication.
Several large investment banks have
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
that could subject $2.4bn of French abolish its national digital tax as soon as by what they see as contradictory sig- technical, it’s political,” the French offi-
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would
his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require “existing regulatory, budgetary,
Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

Tel: +852 2905 5555, subseasia@ft.com

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
Port Road, 619088
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”

to accept the proposals. encryption system that cannot be
US budget Q&A and accessed without permission from the
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
champagne and other products to 100 an international minimum taxation nals from the Trump administration, cial said. “All the technical issues have
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and
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
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
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
Representative, Anjali Mahindroo
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
upside”.
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

per cent tariffs, said he and Steven level is agreed at the OECD, called the US with Mr Mnuchin apparently ready to been resolved.”
www.ft.com/subscribenow 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.
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Letters to the editor in any manner is not permitted without the coming days to find a compromise on would react and take its case to the tions, but is concerned about Germany’s
letters.editor@ft.com publisher’s prior consent. ‘Financial Times’ and digital tax in the framework of the World Trade Organization if the new vulnerability to measures targeting the
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Mr Le Maire was speaking after a said Mr Le Maire. “Is that what we want? let ourselves be led by the nose by the
meeting in Paris with Phil Hogan, the No one wants there to be a trade conflict Americans.”
Printed by Reprints are available of any FT article with your EU’s new trade commissioner, who . . . It’s not even a French problem, it’s a During a hearing in Washington yes-
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Wednesday 8 January 2020
Venezuela
Maduro takes advantage of duelling
legislatures with move against Guaidó
Ousting of National Assembly’s head prompts fears of further opposition persecution
GIDEON LONG — CARACAS
Venezuela’s parallel political universes
have just got more complicated.
For the past year, two men — Nicolás
Maduro and opposition leader Juan
Guaidó — have claimed to be the coun-
try’s legitimate president.
Since 2017 the country has had two
congresses: the democratically elected
National Assembly and the National
Constituent Assembly, which was set up
that year by Mr Maduro to cement his
grip on power.
Now, the National Assembly has two
rival presidents in Mr Guaidó and Luis
Eduardo Parra, a rebel opposition legis-
lator who claimed the role in chaotic
proceedings on Sunday.
Why did Sunday’s vote matter?
Mr Guaidó’s claim to be the legitimate
interim president of Venezuela was
based entirely on the fact that he headed
the assembly. According to the govern-
ment, he now no longer does, so his
claim to the presidency is more tenuous
than ever. According to Mr Guaidó, he is
still the president of both congress and
the country.
What happens next?
It is unclear. The National Assembly sat
yesterday and, amid chaotic scenes,
both pretenders to the presidency
appeared. Mr Parra held a session
attended by pro-government law-
makers, but Mr Guaidó later forced his
way into the chamber along with his
supporters to claim he was the rightful
president.
Who is Luis Eduardo Parra?
Until December, Mr Parra was a little-
known legislator from the small coastal
state of Yaracuy. He was a member of
Primero Justicia, one of the main parties
in Mr Guaidó’s coalition. But an investi-
gative journalism website accused him
and several other politicians of corrup-
tion.
Primero Justicia opened an investiga-
tion and Mr Parra was kicked out of the
party. With little to lose (and perhaps
with an axe to grind) he agreed to chal-
lenge Mr Guaidó in Sunday’s vote,
with the support of pro-govern-
ment legislators and disgrun-
tled members of the opposi-
tion.
What does this mean for
Maduro?
Mr Maduro was quick to wel-
come Mr Parra’s election, even
though it clearly broke National
Assembly rules. There was no legal quo-
rum, no vote count and the head of the
assembly — Mr Guaidó — was not
Government spending. Presidential restraint
Flat growth tests Mexico’s Mr Austerity
Investor uncertainty over
López Obrador’s policies is
adding to a slowing economy
JUDE WEBBER — MEXICO CITY
In his first year in office, Mexican presi-
dent Andrés Manuel López Obrador has
proved a contradiction: a populist who
does not like to spend.
His frugal administration lost thou-
sands of seasoned staff because of wage
cuts designed to free up cash to plough
into social programmes. The inexperi-
enced new team has been slow to dis-
burse even the scant funds available.
Investors, worried about the direction
of policy, have also been restrained.
As a result, the economy has
screeched to a halt: zero growth is
expected this year after 2 per cent last
year. But Mr López Obrador prides him-
self on his obstinacy and will not aban-
don higher pensions, grants for unem-
ployed young people or his controver-
sial refinery, airport and train projects.
That could strain his commitment to
maintaining strict fiscal discipline in
Latin America’s second-biggest econ-
omy. So will 2020 be the year Mexico’s
Mr Austerity turns spending taps on?
“Abandoning fiscal restraint is not
necessarily inevitable if handouts and
social programmes keep him popular,”
said Alonso Cervera, chief economist for
Latin America at Credit Suisse.
Indeed, Mr López Obrador’s approval
ratings remain enviably high — 65 per
cent, according to Oraculus, a poll of
polls — albeit off a peak of 81 per cent in
February.
“They don’t know how to spend, so it’s
better that they don’t,” said Valeria Moy,
head of México ¿cómo vamos?, a think-
tank, saying the president’s priorities
“won’t provide the structural change
this country needs. Sensible infrastruc-
ture spending and improving confi-
dence, I don’t see that anywhere.”
The business sector is bending over
backwards to be friendly to the govern-
ment and has pledged to invest in an
ambitious infrastructure programme
that Gabriel Lozano, chief Mexican
economist at JPMorgan, said looked
“interesting, after a dismal year”.
But public as well as private invest-
65 % 6.2 % they were wrong to be critical now that
López Obrador’s Fall in sales tax
approval ratings collection in first
— off a February 9 months because
peak of 81 per cent of slowdown
ment is needed — and the government
has seen a 2.5 per cent drop in income
tax revenue and a 6.2 per cent fall
in sales tax collection in the first
nine months because of the slowing
economy.
“Private investment will remain
defensive and public investment will
remain subdued because of a lack of rev-
enues and the nature of the projects
they are choosing,” said Mr Cervera.
Even without income constraints, Mr
López Obrador’s commitment to deliver
a primary surplus while not raising
taxes or debt reveals a prudent streak at
odds with his leftwing nationalist dis-
course.
People who have known him for dec-
ades said he was so shocked by how
★ FINANCIAL TIMES
INTERNATIONAL
present. Risa Grais-Targow, Latin
America director at Eurasia Group, said:
“Maduro will probably use the duelling
legislatures to increase persecution of
the opposition, lure more lawmakers to
his camp and move towards fresh
assembly elections on his own terms.”
Those elections are due to be held this
year. But Sunday’s move was a gamble
for Mr Maduro. It made him look like a
classic Latin American dictator, shut-
ting down a democratically elected par-
liament and stopping elected politicians
doing their job.
And for Guaidó?
In the short term, Mr Guaidó seems
reinvigorated after a difficult end to
2019 in which his popularity waned and
cracks opened in his coalition. He
received the backing of 100 law-
makers in an impromptu parlia-
mentary session on Sunday
evening. And the image of him
being carried aloft yesterday into
financial crises in the 1980s and 1990s
hurt Mexicans that he was determined
not to repeat history.
He scathingly referred to the market-
driven policies of the past four decades
as Mexico’s failed “neoliberal period”,
because of rampant corruption and a
yawning social divide between the
country’s rich north and poor south that
he said they spawned.
“I think he will try to maintain fiscal
discipline and when that isn’t possible,
he can always blame the private sector
or rating agencies,” said Mr Lozano.
The president has accused rating
agencies of remaining quiet when Mex-
ico was racking up debt and turning a
blind eye to corruption, adding that
the state was finally addressing prob-
lems by pumping money into state oil
company Pemex.
But Pemex is expected to suffer a sec-
ond downgrade to junk status in the first
half as a result of a business plan the
market believes is unrealistic, declining
output and $100bn in debt.
Pemex is heavily reliant on state sup-
port and analysts said it needed even
more investment than the government
had so far made available because of its
strained finances. A Pemex downgrade,
therefore, could trigger a sovereign
downgrade, although Mexico’s coveted
investment grade rating is not at risk.
Slower US growth in 2020 will hurt
Mexico, which has integrated manufac-
turing supply chains with its top trading
partner, but “Pemex is the weak point”,
said Ms Moy. Economists are concerned
by weakening midterm growth pros-
pects, fiscal deterioration and a worsen-
ing security crisis.
the National Assembly on the shoulders
of supporters was potent — it suggested
a man who wanted to see democracy
respected.
In the longer term, though, he may
struggle to maintain that momentum,
and Mr Parra’s defection, along with
those of other rebel deputies, shows his
coalition is vulnerable.
“Even if Guaidó preserves his interna-
tional legitimacy, the regime will con-
tinue to push the opposition leader to
the margins domestically,” predicted
Teneo, a consultancy. “The more
Guaidó is weakened, the more his lead-
ership will be questioned internally.”
What has been the international
response?
The US, EU, Organization of American
States and the Group of Lima, a regional
grouping of most big countries in the
Americas, reiterated their support for
Mr Guaidó and condemned the Maduro
government for orchestrating Sunday’s
Sheremetyevo
Chinese tourism surge boosts Moscow airport
MAX SEDDON — MOSCOW
With a new runway operational and a
gleaming new international terminal
opening this month, Moscow’s Sher-
emetyevo airport has set an ambitious
target to double traffic to 100m passen-
gers a year.
Nearly half are set to come from routes
that were until only recently an after-
thought: connecting flights between
Europe and Asia, boosted by breakneck
growth in tourism from China.
The weak rouble — currently trading
at 62 to the dollar, less than half its value
five years ago — has made Russia one of
the top three destinations worldwide for
Chinese tourists, Russian officials say.
State agency Rosturizm estimated more
than 2m Chinese tourists visited Russia
last year compared with just 158,000 a
decade ago.
“The rouble devaluation after 2014,
Moscow’s efforts to simplify the process
for Chinese tour groups to get visas
together and active marketing by Rus-
sian tourism firms have contributed to
the trend,” said Alexander Gabuev,
chair of the Russia in the Asia-Pacific
programme at the Carnegie Moscow
Centre.
“Russia has also allowed more flights
from regional Chinese air companies to
Moscow, which helps to turn the Rus-
sian capital into an air hub for Europe-
bound Chinese tourism.”
Despite outcries from Russia’s culture
ministry that Chinese tourists were
swamping popular St Petersburg tourist
sites, their big spending makes them an
attractive proposition. The average Chi-
nese tourist spends $700 on a trip to
Russia, according to the central bank,
while total spending for 2019 is
‘The more
Guaidó is
weakened,
the more
his
leadership
will be
questioned
internally’
Defiant: Juan
Guaidó pushes
his way past
security forces
to gain access to
the National
Assembly in
Caracas
yesterday. Luis
Eduardo Parra,
below left, was
elected head of
the assembly
on Sunday
Cristian Hernandez/AFP/Getty
events. Tellingly, even Mexico and
Argentina, with leftist governments that
might have expressed some sympathy
for the Maduro regime, chastised it.
Russia was almost alone in recognising
Mr Parra’s election as legitimate.
Elliott Abrams, the US special repre-
sentative for Venezuela, suggested
Washington would punish Mr Maduro
with more sanctions. But with US and
world attention on the Middle East,
those sanctions would be modest.
“This is the cost of having stirred up
conflict with Iran,” said David Smilde, a
Venezuela expert at Tulane University
in the US.
“It is absorbing the attention of the US
and the EU and they will probably do as
little as possible with Venezuela. This
was undoubtedly part of the calculation
of the Maduro government in undertak-
ing such a brazen power grab. They saw
an opportunity created by the US strike
against Iran and quickly took it.”
Additional reporting by Katrina Manson
expected to top $1bn. As many as 70 per
cent of tax-free receipts handed out at
Russia’s airports go to Chinese citizens.
Sheremetyevo, Moscow’s largest air-
port, is looking to capitalise on that
growth. Signs and announcements are
in Mandarin throughout, while duty-
free stores accept popular Chinese pay-
ment methods, including UnionPay
cards and online systems WeChat Pay
and Alipay.
More than 2.3m Chinese tourists flew
into Sheremetyevo in 2019, including
1.26m who transferred via the airport.
Sheremetyevo, which offers flights to 29
Chinese cities, expects their number to
grow by 30 per cent a year in the years to
come.
“We think that we’re only just getting
started growing Chinese passenger
flows,” Alexander Ponomarenko, Sher-
emetyevo chairman, told the FT in an
interview.
Mr Ponomarenko and his business
partner, Alexander Skorobogatko, own
a 65 per cent stake in Sheremetyevo’s
holding company, which owns about
two-thirds of the airport. Another busi-
Sightseeing: Chinese tourists enjoy a
guided walk through central Moscow
3
Chaos erupts
in Congress as
rival factions
claim right to
presidency
GIDEON LONG — CARACAS
Venezuelan opposition leader Juan
Guaidó yesterday reclaimed his post as
the legitimate head of Congress and
vowed to continue his fight to unseat
President Nicolás Maduro and return
the country to democracy.
In chaotic scenes in central Caracas, Mr
Guaidó and dozens of his legislators
forced their way through a heavy secu-
rity cordon around the ornate gold-
domed Congress building.
They burst through the wooden doors
of the chamber, forcing police officers to
scatter and run, and took their seats,
singing the national anthem as Mr
Guaidó, who is recognised by the US and
more than 50 other nations as Vene-
zuela’s rightful president, assumed the
presidential chair. He was sworn in,
holding up his right hand and pledging
“in the name of Venezuela” to continue
fulfilling his responsibilities as self-de-
clared interim president “and search for
a solution to the crisis”.
They then voted to recognise him as
the president of Congress for another
year. Outside, pro-government support-
ers harassed and robbed journalists who
were trying to get in to Congress.
At one point, the lights and micro-
phones failed inside the chamber, just as
Mr Guaidó was speaking.
Earlier, his rival for the presidency of
the assembly, Luis Eduardo Parra, had
held a session in front of a half-empty
chamber, and was recognised as the
assembly’s new head by pro-govern-
ment lawmakers. By the time Mr
Guaidó and his supporters forced their
way into the chamber, Mr Parra had
gone.
Mr Guaidó has campaigned to remove
Mr Maduro from office after the social-
ist leader claimed victory in an election
regarded as illegitimate by the opposi-
tion and human rights observers.
He has served as president of the
National Assembly for the past year and
was expected to be re-elected on Sun-
day. He tried to scale railings outside the
building, but was blocked, with several
other legislators, from entering Con-
gress. Mr Parra claimed to be the new
president after claiming to have won the
vote of 81 members of the assembly.
US secretary of state Mike Pompeo on
Monday described the vote as “farcical”
and condemned “the former Maduro
regime” for going against the will of the
National Assembly.
Attempts last year by Norway to bro-
ker talks between the government and
the opposition came to nothing, and
Venezuelans have grown disenchanted
with the political process.
Around 4.5m Venezuelans have fled
their country over the past four years.
ness partner, Arkady Rotenberg, a
childhood judo sparring partner of Pres-
ident Vladimir Putin, owns the remain-
ing 35 per cent of the holding company,
while the government owns the other
30.5 per cent of the airport.
Since taking over Sheremetyevo, Mr
Ponomarenko has overseen a $2.5bn
infrastructure upgrade that includes
two new passenger terminals, a cargo
terminal and a train under the runway
linking them to the existing terminals.
In addition to Chinese tourism, Mr
Ponomarenko sees transfer traffic
between Europe and China as key to
growing passenger flows.
The airport has doubled its share of
transfer traffic between Europe and
China to 10 per cent in the last half-dec-
ade and intends to compete with more
established hubs.
Moscow’s attractiveness as a transfer
hub and tourist destination has seen
several foreign companies take shares in
Russian airports in recent years. Qatar
Airways is in talks to conclude the pur-
chase of a 25 per cent stake in Moscow’s
Vnukovo by the end of 2019, while the
Qatar Investment Authority and Ger-
many’s Fraport are part of a syndicate
that owns Pulkovo airport in St Peters-
burg.
Mr Ponomarenko said he and his
partners were considering selling a 30
per cent stake in Sheremetyevo in order
to raise funds to buy out the govern-
ment’s stake should Russia exercise a
put option. “We don’t think [Chinese
tourism has] peaked yet,” he said.
“Even if [China’s growth slows down],
it’ll only go up, because it’s cheaper for
Chinese tourists to go to Russia than
anywhere else.”
Inside Business page 12
4 ★ FINANCIAL TIMES Wednesday 8 January 2020

INTERNATIONAL
GLOBAL INSIGHT
Parliamentary vote
SAN DIEGO

Sánchez to head Spanish coalition Brendan

Socialist party and far-left
Podemos join forces after
slim victory for premier
DANIEL DOMBEY — MADRID
Spain will have a coalition government
for the first time in its modern history —
including ministers from the far-left —
after parliament confirmed Pedro
Sánchez as prime minister by a wafer-
of political instability in which Spain
held four general elections and lacked a
strong government.
“There are only two options: either a
progressive coalition or a continuing
impasse for Spain,” he said, as he called
on the right to accept the result of the
last, inconclusive election in November,
when the Socialists came first but fell far
short of an overall majority.
The new administration — which will
be the first to include Communist minis-
Greeley
months ago only through winning a vote ‘You are the of deputies, meaning that to take office
of no confidence in the previous centre- the government required the absten-
Trojan
right administration.
But the tiny margin indicated the new
administration’s limited room for
horse
tions of the ERC, the biggest pro-inde-
pendence Catalan party, and of EH
Bildu, a Basque secessionist party.
Central banks lack the
manoeuvre, while the angry debate
highlighted the increasing polarisation
[being
used] to
The Catalan independence dispute is
the most divisive issue in Spanish poli-
‘bazooka’ to fire up
of Spanish politics.
In bad-tempered exchanges right-
wing politicians rounded on Mr Sánchez
destroy
tics today. Mr Sánchez had sought to
avoid both a coalition with Podemos and
relying on the Catalan and Basque sepa-
economic growth
for his reliance on Catalan and Basque
the state’ ratists.
separatists in yesterday’s vote. Pablo Casado, But he concluded he had no alterna-
People’s party

thin margin.
Yesterday’s 167-165 vote, which came
after a furious debate in the country’s
chamber of deputies, paves the way for
Mr Sánchez to be sworn in today at the
head of a coalition of his Socialists and
the radical left Podemos movement.
In a combative speech ahead of the
vote, Mr Sánchez portrayed the new
government as a break with four years
ters since the 1936-39 civil war — plans
to increase taxes on big corporations,
bolster collective bargaining, reduce
carbon emissions and combat gender-
based violence.
The vote is a personal achievement
for Mr Sánchez, who had previously
tried and failed to win parliament’s
backing to form a government in both
2016 and 2019. He came to power 18
“You are the Trojan horse [being
used] to destroy the state,” said Pablo
Casado, the leader of the centre-right
People’s party.
“If you satisfy the demands of your
partners against the system, Spain will
be broken. If you do not, they will throw
you on to the street.”
The Socialists and Podemos have only
155 members of the 350-seat chamber
tive after the failure of his gambit of trig-
leader gering November’s election, which left
the Socialists with a handful of seats
fewer than before.
Yesterday’s vote only took place after
weeks of negotiations between the
Socialists and the ERC, in which the sep-
aratist party promised its abstention in
return for a road map for future negotia-
tions over Catalonia.
O
ver the past year, US Federal Reserve officials
have become increasingly open about what
monetary policy cannot do for economic
growth. In November, for example, Fed chair
Jay Powell suggested that Congress should
consider ways to help train workers or make it easier for
women to stay in the labour force.
Former Fed chairs Janet Yellen and Ben Bernanke have
now sent another message to Capitol Hill: should a down-
turn come, the Fed might not be able to handle it alone.
“Although monetary policy has a meaningful role to play
in future downturns, it's unlikely to be sufficient in the
years ahead,” Ms Yellen told an economists’ conference in
San Diego on Sunday.

Syria Mr Powell has pleaded for structural policies that

increase America’s ability to grow over the long term
regardless of the ups and downs of the business cycle. Ms
Putin pays Yellen and Mr Bernanke, by contrast, are concerned about
cyclical policies — ways to respond to a recession.

surprise visit This is because of the decreased scope for monetary

stimulus. The US’s natural rate of interest — an estimate of
what interest rates would be without any interventions
from central banks — is still higher than those of Europe
and Japan, according to estimates by the New York Fed,
Russia’s President Vladimir Putin, reflecting higher US economic growth. But over the past
centre left, visits the eighth century several decades the natural rate has dropped from 3.7 per
Umayyad Mosque in the old city of cent in 1980 to 0.6 per cent at the end of 2019.
Damascus yesterday with Syrian To encourage lending in a downturn, the Fed can drag
counterpart Bashar al-Assad, centre interest rates below their natural level. But with the natu-
right, during a surprise trip for ral rate already perilously close to zero, there is little room
bilateral talks. It was the Russian left.
leader’s first visit since 2017. In San Diego Mr Bern-
Two years ago, Mr Putin declared anke said the Fed’s alter-
The Fed can drag
Moscow’s mission in Syria native tools, such as asset interest rates below
accomplished. His arrival reinforced purchases and forward
his support for the Syrian president, guidance, were robust
their natural level,
as their joint militaries continued to but added a warning: if but this is already
pound the last bastions of resistance the natural rate of inter-
in the north-western Idlib province. est falls too low, the tools
close to zero
are less effective. That
Sana/Reuters would mean “a more central role for fiscal policy in
responding to economic slowdowns”, he said.
Ms Yellen and Mr Bernanke urged Congress to
strengthen automatic stabilisers — programmes such as
Profile. Luo Huining unemployment insurance that kick in during a recession.
“It’s something Congress could do before the next reces-

China’s enforcer sends message to Hong Kong
ingly lost patience with its officials fol-
Appointment of hardliner lowing more than nine months of often
viewed as shift in Beijing violent protests in the Asian financial
hub, the final straw being the huge
approach to city’s problems defeat for pro-Beijing candidates in dis-
trict council elections in November.
Analysts say the appointment of such
CHRISTIAN SHEPHERD — BEIJING
SUE-LIN WONG — HONG KONG a high-level official marks a shift in Bei-
jing’s approach to Hong Kong that could
Luo Huining has a record of using hard- accelerate its reform timetable for eve-
line tactics to resolve tough problems rything from the city’s national security
for the Chinese Communist party. laws to its economy and education sys-
In coal-producing Shanxi province he tem.
helped root out corrupt officials with Such a push would put him on a colli-
ties to the powerful aide of former presi- sion course with the territory’s pro-
dent Hu Jintao. And before that he spent democracy camp and demonstrators
more than a decade in Qinghai, birth- who fear shrinking civil liberties.
place of the Dalai Lama, where along- Appointing Mr Luo is the “biggest pol-
side efforts to revive the local economy icy adjustment the party centre can
he further tightened restrictions on make, given they are unwilling to give in
Tibetan Buddhist communities. to the Hong Kong people’s demands”,
But up to now the little known 65- said Wu Qiang, a former politics lec-
year-old has operated away from the turer at Tsinghua University in Beijing.
limelight. His elevation to the role of Beijing has traditionally appointed
Beijing’s man in Hong Kong has moved up-and-coming career bureaucrats as
him centre stage in the biggest political director of the Central Liaison Office —
crisis on Chinese soil in decades. Beijing’s de facto embassy in Hong Kong
It has also triggered questions over — and they have tended to be viewed as
what Beijing plans next after it seem- functionaries who parroted official
party lines. Wang Zhimin, Mr Luo’s
predecessor, had none of his high-level
experience.
The symbolism of inserting such a
powerful figure into the territory’s crisis
has not been lost on Hong Kongers who
joke about him being their new “party
secretary”, the most senior official in
mainland Chinese hierarchies.
In his first speech after taking up the
post on Monday, Mr Luo said he looked
forward to working with Carrie Lam,
Hong Kong’s chief executive, and her
government to “guarantee that
[China’s] constitution and [Hong
Kong’s] Basic Law are fully imple-
mented in Hong Kong”.
“He was successful in cleaning up the
mess in Shanxi,” said Willy Lam,
adjunct professor at the Centre for
China Studies at the Chinese University
of Hong Kong. And because he has
already reached retirement age and is
not seeking promotion, he will have “no
qualms about carrying out Beijing's dra-
conian orders”, Mr Lam added.
A week before being sent to Hong
Kong, Mr Luo was appointed to a finan-
cial and economics committee under
the National People’s Congress, China’s
legislator, a position normally reserved
for senior officials over 65. His swift pro-
motion has taken many by surprise.
“By the standards of the Chinese sys-
tem, this is a very last-minute decision,”
said Ryan Manuel, China expert at
Luo Huining: research firm Official China.
the symbolism The abrupt axing of Mr Wang was a
of inserting such sign of Beijing’s dissatisfaction with the
a powerful way the demonstrations had been
figure into the allowed to escalate, according to people
territory has not who speak regularly to the liaison
been lost on office.
Hong Kongers It would be “naive” to consider a per-
sonnel swap enough to fix the deep-
rooted problems with Beijing’s attempts
to govern in Hong Kong, according to
Samson Yuen, a political scientist at
Lingnan University in Hong
Kong. “It’s . . . an institutional problem
that cannot be fixed by one person,” he
said.
But for Mr Wu the arrival of Beijing’s
enforcer is ultimately a sign that the
party remains “unwilling to give in to
the Hong Kong people’s demands”.
Additional reporting by Nicolle Liu in Hong
Kong and Qianer Liu in Shenzhen
sion, and I believe should do,” said Ms Yellen.
Hélène Rey of the London Business School pointed out
that government spending is even more effective during a
downturn, when private spending collapses.
“We do have some tools, but indeed they have been
stretched,” she said. “Fiscal policy could do a lot.”
Economists puzzle over what has been dragging the nat-
ural rate down, and have formulated two explanations.
The first is that labour forces in developed economies
are growing older — there are fewer workers and a higher
savings rate as they prepare for retirement. More savings
chasing fewer investments drives returns down.
The second is that productivity is not growing as quickly
as it used to, which damps growth and opportunities for
investment.
The Fed cannot do much about either. Benjamin Fried-
man, an economist at Harvard, said the Fed cannot make
industry more innovative or educate workers, which
would improve productivity. The drop in the natural rate
“may or may not be fixable, and it’s not the Federal
Reserve’s job to fix it”, he said.
This will make the Fed’s job even harder when economic
conditions worsen. “We just have less room to manoeu-
vre,” said Mary Daly, president of the San Francisco Fed, in
San Diego.
In the usually understated world of monetary policy,
expressions of concern such as this are notably explicit.
“They can’t announce too loudly they have no tools left,”
said Raghuram Rajan, former governor of the Reserve
Bank of India, now at the University of Chicago Booth
School of Business. “Part of the magic of central banking is
to pretend you have a bazooka behind your back.”
brendan.greeley@ft.com

Corporation tax windfall Price growth

Public spending debate looms over Ireland election campaign Eurozone inflation picks up
ARTHUR BEESLEY — DUBLIN
Ireland faces a general election this
year with its economy in the best shape
since the financial crisis, boosted by
Google, Apple and other US tech and
pharma companies whose tax pay-
ments have transformed its public
finances.
But questions over the sustainability of
this surge in corporation tax receipts are
set to overshadow the campaign, in
which all parties will come under pres-
sure from voters to boost spending to
address a chronic housing crisis and
healthcare failings.
Data published last week showed that
Ireland’s public finances delivered a sur-
plus of €1.5bn in 2019, or 0.4 per cent of
gross domestic product; only the second
time since the financial crisis it has
taken in more money than it spent.
Corporation tax revenues grew 4.8 per
cent year on year to €10.9bn, beating
even the most optimistic government
forecasts and capping five years of stel-
lar growth from just €4.6bn in 2014. The
total tax haul was a record €59.3bn,
almost double the €31.8bn received in
2010, the worst year of the crisis.
thanks to Christmas shoppers
Corporation tax revenues now
account for more than 18 per cent of all
tax receipts and are skewed towards a
small number of large companies: the
10 biggest contributors pay half of total
receipts between them.
The business tax surge has been
attributed to rising corporate profitabil-
ity and US tax changes that made it
attractive for American groups to shift
intellectual property assets to Ireland,
whose corporate tax rate is a low 12.5
per cent.
However, ministers have warned this
is unlikely to last; finance minister Pas-
chal Donohoe said in a recent speech
that corporate tax revenues might begin
to drop as soon as next year.
“There is a broad consensus that fur-
ther international tax reform efforts are
needed in order to address the tax chal-
lenges arising from the digitalisation of
the economy,” he said. “Change is com-
ing and changes will have an impact on
both our economic model — our ability
to attract inward investment — and on
our revenue stream.”
The Irish Fiscal Advisory Council, a
statutory budget watchdog, has warned
that €2bn to €6bn of Ireland’s corporate
tax receipts may be at risk from changes
to international tax policy, trade ten-
sions and industry and company-spe-
cific risks.
One example is the forthcoming clo-
sure of the “double Irish” loophole that
allows international companies to
reduce the tax they pay on their global
operations. Last week one of Ireland’s
€10.9bn 10
Corporation tax Companies that
revenues in 2019, contribute to half
up from just of Ireland’s total
€4.6bn in 2014 corporation tax
largest corporation taxpayers, Google,
disclosed that it had overhauled its tax
structure, moving intellectual property
to the US before the loophole’s closure at
the end of 2020.
Mr Donohoe has pre-emptively scaled
back Ireland’s public spending growth,
setting out plans to achieve a budget
surplus of at least 1 per cent of GDP by
2022 and arguing that maintaining a
surplus over the medium term is the
best way to counter the risk of falling
business tax revenues.
That is set to become an election
issue. Irish politicians are bracing for an
election in spring, summer or even in
February, after Boris Johnson’s UK elec-
tion win late last year lifted the Brexit-
related uncertainty that has kept Leo
Varadkar’s minority government in
power, propped up by a voting pact with
Fianna Fáil, the largest opposition party.
With the election campaign will come
inevitable questions over what the next
government should do to ensure more
housing is built and to improve the
health service, which are Mr Varadkar’s
weakest spots. His Fine Gael party’s rep-
utation for fiscal competence has also
taken a hit due to large cost increases on
hospital and rural broadband projects.
Although Mr Varadkar has promised
income tax cuts and a public sector pay
rise, he has insisted that “the overriding
commitment will be to run a [budget]
surplus”. The taoiseach has also said he
will not cut taxes if there is a deficit.
Mr Donohoe says he is wedded to pol-
icy prudence. But the Fiscal Advisory
Council has criticised the government
for deploying the unexpected growth in
corporation tax receipts to fund persist-
ent current spending overruns.
MARTIN ARNOLD — FRANKFURT
Strong pre-Christmas consumer
spending in the eurozone helped to
boost inflation to a six-month high,
adding to signs that the region’s econ-
omy has stabilised in recent months.
Consumer prices rose 1.3 per cent in
December from the year before, up
from 1 per cent in November, according
to a flash estimate from Eurostat. The
rise was in line with the average fore-
casts of economists, said a Reuters poll.
Excluding the more volatile areas of
energy and food, alcohol and tobacco,
price growth was unchanged from
November at 1.3 per cent. The highest
inflation was in Slovakia, the Nether-
lands, Lithuania and Latvia, where
prices rose 2 per cent or more.
The figures are welcome news for the
European Central Bank, which in Sep-
tember cited concern about falling infla-
tion as its main reason for cutting inter-
est rates and restarting its quantitative
easing (QE) bond purchase programme.
While the figures remain below the
ECB’s core objective for inflation to be
below but close to 2 per cent, the
December rise takes the pressure off the
central bank to cut interest rates further
in the next few months.
“This will please the more hawkish
members of the ECB’s governing council
and lowers the chance that policymak-
ers are forced into further loosening in
the next few months,” said Jack Allen-
Reynolds at Capital Economics.
A further boost to inflation could
come from rising oil prices, which have
risen about 5 per cent to hit three-
month highs above $70 a barrel in
recent days on fears about tension in the
Middle East after the US assassination of
an Iranian general last week.
Economists at Morgan Stanley said a
sustained rise in Brent crude prices of
more than $10 a barrel “could bring
headline inflation temporarily to
around 1.8 per cent by end-2020”.
However, they added that the ECB
was likely to look past any volatility in
energy prices and focus on core inflation
in its rate-setting decisions.
Wednesday 8 January 2020 ★ FINANCIAL TIMES 5
6 ★
Marriage of beauty and technology
A New York exhibition celebrates an era when scientific tools
and gadgets were made with exquisite care. By Ariella Budick
I
sing to you of a marvellous
machine — a case no larger than a
snuffbox, its interior encrusted
with tiny dabs of gold, silver, and
substances of surpassing rarity
such as yttrium. This miraculous vessel
contains the world’s entire store of wis-
dom. At a touch, it summons the most
illustrious musicians to a private per-
formance, unfurls bawdy scenes or lofty
tragedy in a theatre tiny enough to fit in
the palm of one’s hand. It calculates the
motion of the stars, plots a course to any
port, translates any text (ancient or
modern) and brings tidings from distant
lands within moments of their occur-
rence. This magic casket confers on its
bearer knowledge that the greatest
emperors of yore could only dream of.
The only catch: I’ve got one, you’ve got
one, and so does every tired commuter
packed into your subway car. An instru-
ment that would once have conferred
majesty and power now makes you just
another schnook with a smartphone.
The Metropolitan Museum’s exhibi-
tion Making Marvels carries us back to
a time, roughly the 16th through to
the 18th centuries, when tools of scien-
tific inquiry were also objects of beauty,
usually fabricated for princes. Costly,
rare, spectacularly engineered and
exquisitely decorated, each had a spe-
cific job; together they added to human-
ity’s understanding of how nature
worked, and how it could be mastered.
Some were frivolous (Leonardo da
Vinci designed a wooden lion that roars,
which unfortunately could not be
rounded up for the occasion). Others
were lethal (gilded gunner’s levels made
the job of decimating a city with cannon
fire more efficient) or mysterious (a
“mechanical paradox” makes a wheel
appear to roll up an incline). Still others
represented a quasi-mystical faith in the
marriage of technology and cosmology.
Augustus, elector of Saxony, possessed a
chest-like alchemical furnace. Its steel
walls, trimmed in brass, bear engraved
scenes illustrating the way ancient gods,
heavenly bodies and patient experi-
ments can join together to turn base
metals into gold.
No activity was too mundane to be
ennobled by ingenuity and taste. Sure, a
scribe could work on a scarred wooden
plank, but a sovereign’s thoughts would
be sharpened by a wood-and-ivory writ-
ing box intricately inlaid with polyhe-
drons. Drinking brought forth lavish
Bohemian tankards designed to keep
wig powder from dusting one’s beer, and
a wrought iron trick chair that immobi-
lised a victim until he had guzzled
enough to earn his freedom — a gizmo
that offered liberation through libation.
At a more advanced level of partying,
an early 17th-century automaton clock
from Augsburg features Diana atop her
chariot, drawing a bow. When it was in
June bug automaton (c.1600)
full working order, the contraption
would roll across a tabletop, drawn by
head-bobbing leopards, while the god-
dess rolled her eyes. The chariot
stopped, the arrow flew, and the person
it hit had to knock back a drink.
Beauty and science did not belong to
separate categories: precious gems that
set off a shapely clavicle also hinted at
mysteries stored deep in the earth.
Among the grandest and most complex
apparatuses of Enlightenment Europe
FINANCIAL TIMES
ARTS
Above: equation clock (1591). Above right: the draughtsman-writer (c.1800) could reproduce drawings and poems
was the pipe organ, which fused tech-
nology, prayer and aesthetic excitement
into one sonorous package. Not even the
Met has the resources to import, say, the
18,000-pipe behemoth from the St
Stephen’s Cathedral in Passau, Ger-
many, but it does have an astonishing
miniature orchestra with a clock and a
troupe of tiny players, built in Augsburg
in 1625. A short video demonstrates
what happens when you (well, not you,
but a designated automaton-handler
wearing black gloves) turn the key and
flip a switch: the little musicians launch
into a stately whirl and the mechanism
sounds a wheezy polyphonic dance.
Princes were doers. They operated
lathes that spun ivory blocks around
while fixed blades shaved them into ele-
gant cylinders or elaborate shapes. John
William, a 17th-century elector pala-
tine, worked under the tutelage of the
ivory-turning master Georg Steiner to
produce a magnificently loopy cup and
cover, which sits on a base like a spiral
staircase and culminates in a lopsided
finial, with various kinds of carved flora
germinating along the way. Works such
as these merge architecture, craftsman-
ship, botany and wit into objects of
supreme flamboyance.
Europe’s rulers were also competitive
collectors. The Met show functions as a
kind of meta-Wunderkammer, with
instruments and artefacts plucked from
courts that vied for the best goodies.
These treasuries didn’t just gratify an
acquisitive nobility or stoke a keeping-
up-with-the-Habsburgs ethos of luxury.
Possession implied understanding;
understanding translated into power.
The collections of sextants, clocks,
Keeping step with the march of time
Our constant, connnected,
24-hour world is the subject of
a fascinating show in London,
writes Jan Dalley
“Where can we live but days?” In a line
from his poem “Days”, the pre-internet
Philip Larkin was musing on the fact
that human life and social organisation
are forced to revolve around that most
intractable of elements: time.
In a fascinating exhibition at Somer-
set House, 24/7: A wake-up call for our
non-stop world, time is an essential
theme. And, often, the enemy: Marcus
Coates’s film “Self-Portrait As Time”
(2016) shows the artist’s finger nudging
the second hand on his watch forward,
beat by beat, as if he were the driver of
the force that is in fact controlling him.
Through this rich and highly imagina-
tive show, some 40 artists explore the
clash between the natural rhythms of
human life and the relentless, glo-
balised, digitised world we have made.
But sleep became political long ago.
As early as 1782, Joseph Wright of Derby
painted “Arkwright’s Cotton Mills by
Night”, on display here — a night-time
image of a factory in a beautiful valley,
its windows brightly lit as the workers
toil through continuous, alternating
12-hour shifts.
The way the demands of industry and
production overwhelm a sustainable
human timescale is the subject of the
fierce polemic that inspired this show,
Jonathan Crary’s book 24/7: Late Capital-
ism and the Ends of Sleep, in which he
argues that capitalism is “pushing us
into constant activity and eroding forms
of community and political expression,
damaging the fabric of everyday life”.
Here, in Alan Warburton’s “Sprites
I-IV”, a series of lenticular prints show
various miserable versions of the artist
desperately attempting to sleep —
curled underneath his desk, scrunched
automatons, fountains and other gadg-
ets amounted to an intra-European con-
test of prestige, glory and technological
command. As every schoolchild and
tourist who visits the Royal Observatory
in Greenwich learns, the British empire
was built on clocks. Accurate timekeep-
ing allowed navigators to calculate lon-
gitude, increasing the likelihood that a
ship would hit the continent it was aim-
ing for.
Today, technological puissance is
often invisible. Ordinary people carry
An automaton
clock in the
form of Diana
on her chariot,
c.1610
into a chair — in the 24/7 Beijing video
effects studio where he worked. People
have to sleep, it tells us; but good luck
with that because money never does.
Sometimes this frenetic pace is driven
from above, viz Benjamin Grosser’s
very funny video of Mark Zuckerberg —
in which thousands of clips spliced
together have the Facebook billionaire
endlessly repeating “more”, “more”,
“more”, like a nodding dog — or some-
times it is self-inflicted, as shown in
Rut Blees Luxemburg’s time-lapse
photograph of a London high-rise block
at night, its windows perpetually
glowing with the light of myriad screens,
the 24/7 culture operating across dis-
traction, entertainment, irregular
work patterns or simply our fear of
being unconnected.
And in this constant contact it seems
we talk, write, tweet about . . . sleep.
The installation “Awake” (2019) by art-
ist collective Tekja projects on to a rank
of screens a live blizzard of social media
messages that contain the words sleep
and sleeplessness, alternating with dig-
ital mandalas that are perhaps intended
to be quieting — but display the same
frantic, razor-edge brightness.
Some artists here taunt us with vivid,
discomfiting images: Swiss artist
Wednesday 8 January 2020
objects that are at once advanced, inter-
changeable and largely unadorned, and
we’re barely aware of who, precisely,
reaps the information they generate
about what we do, how we think and
where we go. In the pre-industrial age,
however, sophisticated devices, with
their wondrous springs and whispering
gears, were made to be admired, the bet-
ter to appreciate the discriminating per-
son who had paid for them. Every
machine was a kind of performance —
specifically, a power play.
That fact gives the exhibition an irre-
sistible theatrical quality, which is only
occasionally explicit. In the 18th cen-
tury, stage productions often relied on
elaborate hydraulic systems to whip up
storms, transform day into night, and
launch deities into flight. Country pal-
aces boasted wizardly waterworks. The
Met offers small-scale version of these
delights, including a pair of mid-
18th-century mechanical paintings that
flip through various scenes.
But not all that glisters is bold. Several
showpieces, for all their silver and
whimsy, suffer from an inefficiency that
still bedevils today’s robots: they look
great and do little. Now, as then, it takes
an awful lot of finicky human labour
before you can get an inanimate object
to perform a pretty dumb task with even
a modicum of elegance. A thin line
divides awe from silliness.
To March 1, metmuseum.org
Roman Signer’s video of himself tossing
and turning in bed, while a small drone
buzzes noisily above him like some infu-
riating insect, painfully recalls the hell
of perpetual fatigue. Or they try to
soothe, sometimes with an edge of
warning: among many walk-in installa-
tions is a hotel room in which you can lie
down and listen to the reading of a dys-
topian science-fiction story about sleep,
or a darkened chamber by Tatsuo Miya-
jima, called “Life Palace (tea room)”,
where blue LED lights hypnotically
count down from nine to one.
Alexandra Daisy Ginsberg’s “Machine
Auguries” is a soundwork that blissfully
recreates the pealing birdsong of the
dawn chorus — blissfully, that is, until
we realise that she has mechanically
reproduced sounds of birds whose
song is disrupted and altered by noise
and light pollution. Even the natural
world is discombobulated by nonstop
human activity.
This clever, thought-provoking show
is a little like the phenomenon it
describes: dauntingly busy, sending us
stimuli from all sides that we don’t (we
think) have time to absorb properly. But
it is important. Make time to see it.
To February 23, somersethouse.org.uk
Blizzard of
information:
Tekja’s
installation
‘Awake’
(2019)
Stephen Chung
Wednesday 8 January 2020
Maurice Saatchi’s exit from M&C over an accounting scandal ended an influential and long-lasting alliance.
Brought low by a touch of hubris, his former colleagues must now regain the trust of clients and investors.
T
he year was 1995 and the
Saatchi brothers, once lords
of global advertising, were
pitching to resurrect their
careers after being ousted
from the firm that bore their name.
British Airways executives arrived at a
swish Mayfair building. But all was not
what it seemed.
Maurice and Charles had borrowed
the office from a friend, shipping in art
and staff for the day to give it some
Saatchi sparkle. In the pitch room itself
was an even more far-fetched sight:
three man-shaped cardboard cutouts.
The props were the so-called “three
amigos” — Jeremy Sinclair, David Ker-
shaw and Bill Muirhead — fellow exiles
from Saatchi & Saatchi and partners in
the new breakaway Saatchi venture.
Stuck on “gardening leave”, which
meant in theory they were not supposed
to be involved in the pitch, the trio had
recorded a video for the airline execu-
tives. In it they tore around a field on
tractors, wearing huge sombreros, and
with Mr Sinclair chewing on a Romeo y
Julieta cigar. The chutzpah was classic
Saatchi, what biographer Alison Fend-
ley called the executives’ modus oper-
andi: “Promise anything now and work
out how it can be achieved later.”
It did the trick. BA moved from
Saatchi & Saatchi, an era-defining ad
agency for companies and politicians
alike that became the world’s biggest
before the brothers were ejected in a
boardroom coup. With BA onboard,
overnight the new business — M&C
Saatchi — had a foothold in the global ad
market. “I was genuinely interested to
see whether lightning would strike
twice,” says Mr Sinclair. “I think it did.”
That goes for the good and the bad.
Almost 25 years on, M&C Saatchi is in
crisis, torn apart by an accounting scan-
dal, boardroom intrigue and another
extraordinary Saatchi exit. The paral-
lels with Saatchi & Saatchi are not hard
to spot.
Like in the 1990s, the M&C Saatchi
finances were run to the brink and its
share price has tumbled. One more Lon-
don-based advertising business has
Saatchi on the nameplate, but no
Saatchi in the building. With a hint of
relish, David Herro, a US investor who
battled the Saatchis in the 1990s, says:
“What we are seeing today [at M&C
Saatchi] is not a surprise to me.”
There is one big difference. This time
Lord Maurice Saatchi sided with the
non-executive directors, who have criti-
cised the way his former partners ran
the business. On a December afternoon,
he walked out with M&C Saatchi’s three
independent board members, a cross-
section of Britain’s establishment:
Michael Dobbs, a Conservative peer
who wrote House of Cards; Michael Peat,
a knight who once served as the Queen’s
treasurer; and Lorna Tilbian, a City
adviser and media industry financier.
His one-sentence resignation letter to
his lifetime colleagues was signed:
“Regrets, Maurice”.
A bruised brand
The bad-tempered dispute was over
M&C’s financial health, the role of inde-
pendent directors and the blame for
★ FINANCIAL TIMES
FT BIG READ. ADVERTISING
By Alex Barker
A bust-up in adland
‘Everything
what went wrong, according to several
witnesses. But it was more than just a
had gone so spectacular boardroom bust-up. With
well for so characteristic brio, the Saatchi resign-
ation ended possibly the most influen-
long we tial and long-lasting partnership in
thought we modern advertising, one that held
together for the best part of half a cen-
could walk tury before being brought low by fear of
on water. failure, a touch of hubris and the per-
sonal wrench of a bereavement.
Then the The three amigos, though, are stick-
gods looked ing with the firm: Mr Sinclair, the
73-year-old creative force of the part-
down and nership, as executive chairman; the
decided, chief executive Mr Kershaw, the young-
ster of the group at 65; and executive
“those boys director Mr Muirhead, an Australian
need cutting who first started working with the
Saatchi brothers in 1969 aged 23.
down to One rival ad executive says the global
size”’ M&C agency network, made up of entre-
preneurs who part-own the 141 compa-
nies, sometimes felt like the founders
“were living their past glory while other
people were doing all the work”. Succes-
sion questions have been raised for 15
years. But the financial storm has only
strengthened the partners’ resolve to
hold on and steady the ship.
Now the question is whether a trio
that helped sell Margaret Thatcher,
Concorde and Silk Cut cigarettes to the
world can again reinvent themselves —
and the bruised Saatchi brand — in the
face of adversity. “We will stick together,
sort this out and then we will work to
find successors,” says Mr Sinclair. “The
thing I love . . . is the model of individ-
ual entrepreneurs. I’m convinced
because it is the future. I would hate the
model to die because of a financial
£11.6m screw-up.”
Accounting errors In the coup business
from M&C Saatchi’s
basic revenue, the What made the early Saatchi & Saatchi a
equivalent of a third success was brazen self-confidence (the
of adjusted pre-tax
profits “nothing is impossible” motto), a knack
for publicity (the brothers announced
105p their arrival in 1970 with a full-page
Times ad) and a nonconformist streak
M&C Saatchi’s share (no potential client was off-limits).
price, which has
fallen by two-thirds
They did some groundbreaking cor-
porate ads. But it was Thatcher’s 1979
since August
election campaign that really cut
141 through. After the release of their
“Labour Isn’t Working” poster, then-
Number of chancellor Denis Healey accused the
companies M&C
Saatchi has as
Saatchis of “selling politics like soap
powder”. It made their name.
clients, covering
marketing, loyalty The business was a magnet for talent.
cards, sports Alumni include Martin Sorrell, the fin-
sponsorship and ancier who built WPP into the world’s
YouTube biggest advertising group; Tim Bell, the
influencers
late PR executive and Thatcher spinner;
Adam Crozier, the former head of ITV
television; and Steve Hilton, the Down-
ing Street adviser turned Fox News
anchor. Sir Martin once described
Saatchi & Saatchi as the most effective
agency he had ever seen: “We were in
the coup business.”
An acquisition spree made Saatchi &
Saatchi Europe’s biggest agency by
turnover in 1981, and the biggest in the
world by 1986. The Saatchi expenses —
and debt pile — grew just as fast. The
brothers’ reputation was compared
with “Howard Hughes or one of the
de Medicis” in the New York Times.
Peak exuberance came with a tilt at buy-
ing Midland Bank in 1987.
“Everything had gone so well for so
long we thought we could walk on
water,” said Lord Saatchi in 2001. “Then
the gods looked down and decided,
‘those boys need cutting down to size’.”
M&C was the atonement. The Golden
Square offices in London’s Soho were
painted stark white. There was to be
no debt, and only organic growth
through “a federation of entrepreneurs”
(typically with a 20 per cent stake in
their businesses). The creative mantra:
“Brutal simplicity of thought.”
Charles Saatchi caused an early row
by overspending on flowers, then
stepped back from M&C to concentrate
on art. But the other four acted as equal
partners, with a veto on decisions. Their
seventh floor office was designed to be
open plan, and secret-free. Until its flo-
tation in 2004, there were no outside
investors to accommodate.
The creative agency M&C Saatchi
London grew to become Britain’s third
biggest by billing in 2007, with promi-
nent campaigns for the British Army
and Carlsberg. They were also involved
in the Remain campaign during the
Brexit referendum. But its importance
has waned — it is no longer in the top 10
— while the M&C network spread into
the wider world of marketing, working
on loyalty cards, sports sponsorship and
handling influencers on YouTube. Its
footprint of 2,500 staff covers 25 coun-
tries and 141 companies.
Hubris crept in. An annual report
published last May crowed: “Whilst it
might be too early to say we’ve cracked
it, it does seem the strategy is proving
itself . . . This must be how it felt to be
pioneers and discoverers of a virgin
land. Men and women with ideas, ambi-
tion and a vision can strike gold.”
Several big investors see the trio as the
brand and the glue for the network. But
some ex-board members are, in hind-
sight, less convinced. “The entrepre-
neurs are in the business but not on the
board,” says one. “This is a holding com-
pany . . . What [the founders] have in
common is unfettered power, hatred of
being challenged, and arrogance.”
Scrutiny over responsibility
The wheels came off on a Tuesday,
August 6. The M&C finance director
Mickey Kalifa walked in to see his chief
executive and said: “It’s good you’re
sitting down.” He had found accounting
errors so big the M&C results would
have to be corrected.
Within days, the company disclosed
errors of £6.4m from basic revenue and
cost recognition, a figure raised to
£11.6m in December in light of a near-
complete PwC review. The hit was
equivalent to a third of adjusted pre-tax
profits last year.
The blow to confidence was dramatic.
Since August the M&C share price has
fallen by more than two-thirds to
around 105p, half its board has resigned
and the Financial Conduct Authority,
the UK’s market watchdog, is looking at
its disclosures. The group’s market
value is down to £108m; on paper, since
August, the four founding partners have
lost about £10m each.
The problems were long in gestation.
M&C had a difficult 2018 audit and
KPMG flagged some increased risks. It
later emerged that four UK subsidiaries
— including LIDA, a marketing agency
— misrepresented accounts over several
years, with revenues booked too early
and costs underplayed. Mr Kershaw
says the motivation was “covering fail-
ure and wanting to please” rather than
“getting rich”.
The August turmoil also triggered
something in Lord Saatchi. The peer
had struggled with grief since the death
of his wife, the novelist Josephine Hart, a
decade ago. He made almost daily visits
to his wife’s grave at their house in
Sussex — “in rain and snow I go” — often
taking his grapefruit breakfast to eat
beside her.
Apart from attending board meetings,
he had faded from the business and
expressed an interest in selling up; he
approached Publicis chairman Maurice
Lévy at least once to gauge his interest in
buying M&C. But once the accounting
problems arose, Lord Saatchi was sud-
denly busy questioning the M&C model,
its finances and the dividend, which had
increased year on year for a decade.
Management saw one of their own, on
an executive salary, challenging them
like a non-executive. Board tensions
rose, culminating in November and
December with bitter, shouty, paper-
waving rows, and the mass walkout. At
issue was an accountability review — an
inquiry into what went wrong, who was
to blame, and how to avoid a repeat.
The non-executive directors felt
they had agreement over a process,
reporting to them, which they claim the
executives backtracked on. To the non-
executive side, it encapsulated a deeper
malaise: denial of management respon-
sibility for some chronic problems.
“Sinclair and Kershaw had disdain
for non-executives intruding on their
7
Maurice Saatchi,
left, departed
from the agency
that he helped
found, leaving
(from left)
David Kershaw, Nosedive M&C Saatchi’s share price
Jeremy Sinclair tumbled after accounting scandals
and Bill were uncovered in August
Muirhead to
pick up the ‘Regrets, Maurice’ Lord Saatchi walked
pieces out of the agency in December after
FT montage; Getty Images;
Rex Features; Jason
siding with the non-executives
Alden/Eyevine
Leaner and meaner? As well as clients
and investors, it must also consolidate
ties with its entrepreneurial network
private grief,” says one supporter of the
non-executives.
The executives vehemently deny
reneging on the process, telling friends
Below: M&C the claim is “absolute bollocks”. Their
Saatchi’s preference, for legal reasons, was for the
headquarters in probe to start after PwC finished its
London. Below- review of accounts. Crucially they also
left: Margaret wanted the audit committee — made up
Thatcher’s 1979 of the three independent directors —
election held to account for mistakes. “They
campaign wanted to control the investigation into
the culpable,” Mr Sinclair wrote in the
Telegraph. “Perhaps not surprising but
certainly not acceptable . . . So they
walk and they talk.”
Two other issues came into the fight.
The first were sizeable bonuses paid to
senior managers of M&C businesses,
based on the misstated 2018 results. The
non-executive side wanted them
adjusted. The executives, citing legal
advice, said only voluntary measures
were possible.
The second was M&C’s cash position.
Days before the walkout, the board was
warned the coffers were running low — a
situation now addressed with new
financing. But for the non-executives
who approved dividend increases based
‘This is a on over-optimistic assurances over
finances, it may have been a final straw.
holding After some testy meetings in Novem-
company. ber, the non-executives demanded a
leadership shake-up but got nowhere.
What [the To Mr Sinclair’s surprise, on December
founders] 10 the three non-executives and Lord
Saatchi arrived to hand over resignation
have in letters. “I said, ‘Could you delay for a
common is month for the sake of the company?’
They refused,” says Mr Sinclair. “I went
unfettered and pressed the lift button.”
power, Lord Saatchi’s desk in Golden Square
is now empty; he has yet to pick up his
hatred of belongings. Eventually the “three ami-
being gos” will hand the reins to the loyal
managers beneath them, some of whom
challenged, have been with M&C since its launch.
and Before then, the big challenge is turn-
ing around M&C and regaining the con-
arrogance’ fidence of their entrepreneurs, clients
and investors. The plan is to quickly
replace the board and revamp the UK
arm so, in Mr Kershaw’s words, it is
“leaner, meaner and fit for purpose”.
The Saatchi “boys”, as they were
known, are once again betting on rest-
less reinvention. “This model makes it
much easier for us to get into new things
quicker,” Mr Kershaw adds. “That’s the
fuel, that’s the strategy. Invest in new
channels and remake.”
8 ★
WEDNESDAY 8 JANUARY 2020
A political experiment
unfolds on the Danube
Austria’s conservative-Green coalition may hold lessons for Germany
Under the Habsburg empire, the
abbreviation “k.u.k.” stood for kaiser-
lich und königlich, or imperial and royal.
In today’s Austria, it stands for Sebas-
tian Kurz, the conservative chancellor
re-elected in September, and Werner
Kogler, leader of the Green party, who
is his vice-chancellor.
Austria’s new coalition government,
which took office yesterday, is an
experimental blend of rightwing eco-
nomic and cultural policies with pro-
gressive environmentalism. It will
set a fascinating potential precedent
for other European countries, notably
Germany. It is to be hoped that
Austria’s modern version of “k.u.k.”
does not suffer the same discredit that
tarnished this combination of letters
a century ago during the final years of
Habsburg rule in Vienna.
The conservative-Green coalition is
welcome for three reasons. First, it
demonstrates that Austria is not
trapped in “grand coalitions” between
the conservative People’s party and
Social Democrats, the default option
of national politics after the restoration
of Austrian sovereignty in 1955. As in
Germany, where three of the last four
governments have been “grand coali-
tions”, this formula, applied for too
long, turns into a recipe for debilitating
squabbles, stale policies and rising
public support for rightwing populism.
Second, it is good that Mr Kurz has
steered clear of the far-right Freedom
party (FPO), with which he formed a
government from December 2017 to
June 2019. During these 18 months the
FPO revealed itself to be unfit as a party
of government and earned Austria the
distrust of its EU allies. It eventually
triggered the coalition’s collapse in a
sordid scandal about the hypothetical
exchange of government contracts for
Russian financial and political support.
Third, the coalition on the Danube
will test the proposition that the maj-
Britain’s defence strategy
needs a reality check
Reform of the military and how it procures equipment is long overdue
The phrase “Global Britain” has been
used time and again by Number 10 as it
has tried to define the UK’s overseas
ambitions after Brexit. It may have a
certain ring to it but as a strategy it is
woefully lacking. The unfolding crisis
in the Middle East, sparked by Amer-
ica’s assassination of Iran’s leading
military figure, is a poignant reminder
that a new global presence requires a
new defence and security strategy.
Dominic Cummings, the prime min-
ister’s chief adviser, has threatened a
shake-up of the Ministry of Defence
after concerns it has wasted billions in
purchasing equipment. Reform of pro-
curement is a priority but it should
only be one aspect of the strategic
defence review that has been promised
by Boris Johnson. Ever since the 2016
Brexit referendum little thought has
been given to what Britain’s national
interests should be after it leaves the
European Union. A strategic defence
review must start by setting out clearly
where these interests lie. Only then can
the government determine what Brit-
ain’s defence capabilities should be —
and how these might fit in to the coun-
try’s continuing membership of Nato.
A good starting point would be to
accept that Britain’s military ambitions
have, for too long, been laced with
nostalgia for past glory. The UK is no
pocket superpower, capable of domi-
nance in every field from nuclear
submarines to infantry power. It does
not have the resources; the latest
assessment of the defence ministry’s
equipment budget forecasts a £15bn
affordability gap over the next decade.
The Royal Navy’s two new aircraft
carriers have come to symbolise all
that is wrong with Britain’s unrealistic
and poorly executed military ambi-
tions: at a combined cost of £6.2bn they
are double their original estimate and
were delivered years late. Even worse,
the government cannot afford to buy as
ority of European voters do not yearn
for the simplistic nostrums of extreme
nationalists, protectionists and anti-
establishment populists. Rather, they
want a sensible mixture of welfare cap-
italism, controlled globalisation and
efforts to tackle climate change.
The two parties’ joint programme
has encouraging features. It foresees
balanced budgets, debt reduction,
income tax cuts and measures aimed at
creating a carbon-neutral economy by
2040. It is deplorable, however, that Mr
Kurz’s party has insisted on two unnec-
essary, intolerant proposals — for the
preventive custody of asylum seekers
deemed a potential threat, and for an
expanded ban on girls’ head scarves.
Austria’s political experiment cannot
serve in all respects as a model for Ger-
many. The Greens are very much the
junior partner in Vienna and will not
hold major ministries such as finance
and foreign affairs. By contrast, any
coalition between Germany’s Christian
Democrats and Greens would probably
be more balanced in nature, reflecting
each party’s electoral strength.
But if the Greens were to occupy the
foreign ministry and other high-level
posts, they would need to be more
hard-headed about the realities of
power. Germany is Europe’s largest
economy but the Greens resist raising
defence expenditure, which is too low,
to Nato’s target of 2 per cent of gross
domestic product. The party appears
more sceptical of military missions
abroad than it was in the days of
Joschka Fischer, Germany’s first Green
foreign minister from 1998 to 2005.
As in Austria, the Greens are deserv-
edly popular for their ideas on climate
change. But Germany has long needed
to step up its game on security and
defence policy. Before the next Bun-
destag election, due by September
2021, the German Greens ought to give
this matter some serious attention.
many of the 138 F-35 fighter jets it origi-
nally said would fly from the ships. Mis-
takes were made not just by the MoD
but by everyone involved. The admi-
rals share some of the blame. As Iran’s
seizure of a UK tanker last July under-
lined, the navy urgently needs more
frigates and destroyers, capable of
defending shipping. It does not need
symbols of power like aircraft carriers.
There has been speculation that one
of the carriers could be mothballed or
sold. Defence experts rightly argue it
would make no sense to relinquish the
capability now. They are still valuable
assets and are most likely to be
deployed as part of an international
alliance with the US or France. As such,
Britain’s carriers could deploy US or
French planes. Alliances are part of the
future for a post-Brexit Britain. There
also needs to be a debate about the role
of the army as the prospect of large
land wars diminishes and recruitment
is under strain. A smaller, well-
equipped army could be effective if
deployed in targeted interventions but
material cuts would break up the
tradition of the regimental system.
Mr Cummings rightly wants to shift
the balance of investment from legacy
platforms like the carriers to areas of
cyber security, drones and space.
There will still though be a need for
aircraft, tanks and ships. Dreadnought,
the nuclear deterrent renewal pro-
gramme, swallows a large chunk of the
budget but is vital to national security.
The MoD’s procurement methods must
become more efficient. Better quality
and better paid personnel are key —
and would help civil servants to stand
up to industry to reduce costs.
A post-Brexit Britain must retain the
tools to defend its interests. It will also
have to sustain military and industrial
ties with Europe, while working with a
maverick American president. Above
all, it will have to be nimble.
FINANCIAL TIMES
Letters
Slow growth requires a particular cure
Having had the privilege of directing
the fiscal affairs department of the IMF
for two decades, I could not agree more
that active fiscal policy should be part
of a “new normal” and that it should
play an important countercyclical role
(editorial, January 6). I also agree that
“the ideal policy would be fiscally
neutral”. The latter has always meant
that budgetary deficits would be
promoted during recessions and
budgetary surpluses when economic
growth is positive.
Investors have not noticed
that the ‘game’ is changing
It is hard to reconcile the push by some
investment companies for chief
executives to purchase more shares in
the companies they manage (“Pressure
for UK chiefs to increase skin in the
game”, FTfm, January 6), with the
mood growing away from shareholder
value as the primary (or only)
corporate purpose towards broader
societal and stakeholder interests.
The relatively recent fashion for
linking executive compensation to
stock prices has already contributed to
significant destruction of societal
value, environmental degradation,
increasing short-termism, shrinking
business investment relative to share
buybacks and dividend payouts, and
long-term damage to shareholder
interests. We have now reached the
stage where equity markets no longer
perform their function of financing
industry and the real economy. Rather,
industry is expected to funnel ever
more of its profits away from the real
economy and to the world of finance.
The world is upside down.
Investors are right that management
should have more “skin in the game”,
but it seems that some have failed even
to notice that the nature of the game
itself is changing, and that doubling
down on stock-based incentives is the
last thing any of us need.
We have previously argued that it is
foolish to believe it can be left to
shareholders to drive reform of
corporate practices, since they will
naturally be driven by their own short-
term interests. This latest salvo proves
the point.
Dr Joe Zammit-Lucia
Founder,
RADIX,
London SW1, UK
Only one toilet pass?
Give me a break
I’ve worked in many WeWork locations
in London and San Francisco,
employed by major corporations that
took space in order to “innovate”. I
could not agree more with Judith
Evans’ analysis “Noisy, impersonal and
cramped: the dark side of hip office
design” (January 6).
In client-facing roles, I often needed
to be on the phone, which garnered me
dirty looks when the phone “booths”
(aka claustrophobic cupboards) were
unavailable. When not on the phone,
the sheer volume of noise forced me to
listen to music, which made me look
unapproachable. I’ve recently been
diagnosed with ADHD which makes
even more sense of why I couldn’t focus
in these environments.
Ergonomically, they’re also very
poor: the desks don’t move, and the
How to farm
your way to a
future beyond
urban blight
Detroit
Notebook
by Patti Waldmeir
Your editorial is not clear on whether
you are recommending fiscal deficits
also to deal with low growth rates, on
the grounds that interest rates are low.
In recent years that kind of fiscal policy
has not been used because there have
not been real recessions since the Great
Recession of 2007-09.
You seem to be recommending
(larger) fiscal deficits as a cure for slow
growth and not just for recessions. Slow
growth can be cured by truly efficient
structural policies, and by truly
‘I told you it was a deep fake’
chairs are cheap and break easily.
Finally, the bathrooms. Imagine
hosting a day workshop with 10 people
from a top client and explaining that
there is only one pass that will allow
them to use the toilet. It’s awkward for
everyone, and makes them feel as if
they are at school again, asking the
teacher if they can go to the toilet.
Also, WeWork’s WiFi password
appears to be the same globally — not
the safest approach.
Anne Shreiner
London SW1, UK
I beg to disagree
Bill Michael, chairman of KPMG, says
he wants to stamp out the “corrosive”
mentality that making large amounts
of money trumps good behaviour
(report, January 6).
“That mentality has existed for years
across the whole market,” he says.
No it hasn’t.
Mark Bogard
Chief Executive,
Family Building Society,
Epsom, Surrey, UK
Majority support keeping
the marriage going
Jason Rose claims (Letters, January 2)
that the Scots’ feeling of being trapped
in a forced marriage has never been
stronger. The political reality firmly
disproves the assertion.
The results of the recent election are
clear. Of those that voted, 45 per cent
voted for a party that has a manifesto
pledge to break up the Union, and 55
per cent for parties that have pledged
to keep it intact. That seems a rather
overwhelming majority in favour of
keeping the marriage going.
This is another example of the
Scottish National party trying to make
a political claim of there being “a clear
message sent Scotland”. It is simply not
true. There will inevitably be more
Brittany Bradd lives off the land,
without running water, gas or mains
electricity, smack in the middle of one
of the biggest cities in America.
She grows her own food, gathers
rainwater, uses a composting toilet
and makes candles from the wax of
her very own bees — in the inner city
of Detroit, a city so devastated by
urban blight that sections of it have
simply reverted to nature.
Detroit was one of America’s most
prosperous cities when I was born
there in the mid-1950s. By the time I
left for college in 1973, it had been
written off for dead. The auto industry
had largely left town, and
discriminatory home-ownership laws
had helped trap the African-American
poor in the inner city. Areas such as
Brightmoor, where Ms Bradd
homesteads, slid into dysfunction.
But now, half a century later, the
sheer scale of Brightmoor’s
devastation — vast tracts of the area
have been levelled in blight removal —
has given the area an unexpected
advantage: plenty of empty land that
can be used to grow the fresh foods
that often aren’t available in local
shops.
Detroit’s newly resurrected
downtown and midtown areas boast
some of the trendiest and most
creative restaurants anywhere in the
US. But outside its core, large parts of
the city are considered “food deserts”
— places where shops don’t sell good
quality fresh produce. Ms Bradd, 27,
and other Brightmoor homesteaders
are trying to do their bit to bring good
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
productive (public and private)
investments. It is naive to believe that
simply running (larger) fiscal deficits
will generate those kind of structural
policies and those kind of productive
investments in many countries,
including EU commissioner Paolo
Gentiloni’s own. All the large countries
(with the trivial exception of Germany)
are already running large fiscal deficits,
in the absence of recessions.
Vito Tanzi
Bethesda, MD, US
whingeing from their PR and
misinformation machine blaming all
Scotland’s ills on Westminster.
However, the reality is that in the key
areas the people of Scotland most care
about, health and education, there
continues to be chronic
mismanagement from the Scottish
government, resulting in poor
outcomes for patients and children far
below that of the rest of the UK.
The need for the Scottish
government to take responsibility for
these devolved issues is paramount and
should be their number one priority,
not their fixation with an unwanted
and uneconomic ideology of
independence.
George Renouf
Keillour, Perthshire, UK
If you’re rich enough you
can circumvent the law
Carlos Ghosn’s jumping bail and
absconding from Japan tells us one
thing: that masters of the universe,
who have accumulated wealth far
beyond that which ordinary mortals
could hope to achieve over several
lifetimes, have the means to
circumvent the law at will.
According to Forbes there are a mere
32 billionaires in Japan (by
comparison, that paragon of equality
Sweden has 33). Working in that
limiting environment, the Japanese
authorities were obviously unprepared
for the onslaught by a tycoon, known
for his focused mind and who, when
confronted with a $1m bill by the US
Securities and Exchange Commission
to settle fraud charges, could easily
cough up that amount.
Makoto Honjo
Tokyo, Japan
The young have no idea
of what privacy means
Emma Martins, the UK’s data
protection commissioner, says that the
conversation about our data must
involve us all (Letters, January 3).
A good starting point would be to
educate everyone, and especially
millennials and the generation after,
about the need for privacy. Few have
any concept of what privacy means and
just how much they are disclosing
when they post on social media,
perhaps because their mantra is to
share and hopefully find “friends”
wherever they are, from restaurants to
airports. This is a step change from
earlier generations who prized privacy
and real friends.
Perhaps a copy of Shoshana Zuboff’s
The Age of Surveillance Capitalism should
be compulsory reading for us all,
especially schoolchildren.
Dr Monica Seeley
Bournemouth, Dorset, UK
food to the urban desert. At a time
when “farm to table” and local food
movements have been growing
around the globe, all that land has
helped Detroit emerge as one of the
most active centres for urban
agriculture in the US.
Carolyn Dimitri, an expert on urban
agriculture at New York University,
says: “The biggest barrier to setting up
any farm is land access and Detroit
has a lot of empty land. Detroit
definitely has an advantage.”
Brightmoor was built in the 1920s to
provide low-cost housing for an influx
of Appalachian workers for the city’s
then-thriving auto factories. By the
time Ms Bradd moved there nearly a
century later, she was able to buy a
derelict home for $500, and several
plots of land for between $100 and
$600 per plot, enough to put together
1.5 acres of farmland where she raises
produce from tomatoes to collard
greens, aubergines, nasturtiums,
blackcurrants and elderberries.
Every year, she asks her neighbours
what crops they want her to plant, and
then deposits large bags of free
produce on their doorsteps. She
donates some to provide meals at the
local Brightmoor Artisans’ Collective,
sells some at pop-up farmers’
markets, and keeps the rest to eat.
She and her partner live in a “tiny
house” that Ms Bradd built herself.
They run one extension cord from a
derelict home on the property, to
power a string of fairy lights, a single
electric burner, a mini-fridge and a
small heater. But the day that I visited
Wednesday 8 January 2020
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
US has been running
the largest Keynesian
experiment in the
history of the world
I am writing in response to your
editorial “Active fiscal policy must be
part of a new normal” (January 6), and
assume that your views apply to US as
well as EU policymakers.
While the Federal Reserve has
increased its balance sheet fourfold in
the past decade via quantitative easing,
the fiscal policy machine has been in
overdrive, too. The outstanding debt of
our government was approximately
$10tn in 2008, but has grown to almost
$23tn, increasing well after the
downturn had been alleviated. I fail
to understand how anyone cannot see
this as the largest Keynesian
experiment in world history. We have
run massive fiscal deficits (under
Barack Obama and Donald Trump)
and cut corporate taxes (President
Trump) to maintain the illusion of
prosperity.
I believe that active fiscal policy is
alive and well and has indeed created a
“new normal”, but one that requires
the same level of dysfunctional policy
to maintain the status quo.
Unfortunately, this active fiscal policy
has been just as present as monetary
policy over the past decade, regardless
of which political party controls the
separate branches of government.
Mark A Sherman
San Francisco, CA, US
Banks — try to manage
your own balance sheets
Your report “Fed aims to stop another
year of grim repo” (January 3) refers to
bank insiders saying that recurrent
bank reserve shortages are the fault of
new bank regulations introduced after
the huge investment of taxpayers’
money in the bank rescues of 2008.
Among other things, these increased
liquidity requirements.
Never is it whispered that the
excessive need for Fed repos is because
banks can’t properly manage their own
balance sheets, just as they couldn’t in
the run-up to the financial crisis. Then
it was mortgages and mortgage-backed
securities; now, apparently, it is their
liquid assets.
Your report also suggests that banks
have gone into higher-risk, lower-
liquidity, longer-term loans to maintain
their profits and, may I add, to pump
up the current stock market bubble.
Something of a mystery is whatever
has happened to the discount window?
In the “old days”, banks short of
reserves would go to the window. But
then of course the Fed might ask to
inspect their balance sheets. Under
present circumstances of bubbly
finance this still seems like a good idea.
In the meantime a spike in repo rates
would teach banks the lesson to get on
with the business of banking without
what amounts to government (Fed),
no-questions-asked, low interest rate
subsidies. And it would also undo this
new version of the Greenspan put that,
like last time, is not going to end well.
Paul Hallwood
Professor of Economics,
University of Connecticut, US
OPINION ON FT.COM
No easy way to reform our institutions
Old hand or fresh eye? Michael Skapinker
asks how we value knowledge and experience
www.ft.com/opinion
her, the heater had not yet been
turned on for the season. We sat
outside in freezing sleet: hardly the
best advertisement for living nearly
off the grid in one of the world’s most
storied cities.
But Ms Bradd says homesteading
isn’t just some crazy dream of hers. “A
lot of what I do is not by choice, I don’t
have family that is going to support
me in some other endeavour, I don’t
have a big bankroll.” Ms Bradd, who is
a native Detroiter, says she tried other
neighbourhoods but “I kept getting
priced out, because of the
gentrification of Detroit”.
“I’d like to have running water but I
can’t afford it,” she says, adding “you
have to have plumbing and I don’t
have plumbing” and she would have
to pay a city deposit of $3,000 to start
service.
The city has plans to revive areas
like Brightmoor: maybe homesteading
will be part of the revival story of a
post-industrial Detroit. Gary Wozniak,
chief executive of one of the few
commercial urban farms in Detroit,
says the city has so much vacant land
that it might be able to farm as many
as 5,000 acres commercially.
Or maybe urban farming will prove
a passing phase. There’s one thing for
sure: the people who built the
neighbourhood a century ago never
imagined a future of happy
pastoralism. It took people like Ms
Bradd to come up with such a
pioneering idea.
patti.waldmeir@ft.com
Wednesday 8 January 2020
Gita
Gopinath
T
he global discussion on the
future of money has been
irreversibly altered in the
six months since Facebook
announced plans for a dig-
ital currency. While Libra’s own pros-
pects have dimmed, major central
banks are considering whether “public”
digital currencies are needed to fill a gap
in retail payment needs.
Some analysts suggest that the addi-
tion of private and central bank-backed
digital currencies could provide the long
expected but elusive shock that finally
dislodges the US dollar from its decades-
long dominance in global trade and
finance. These technological advances
could also become the ingredients for a
“synthetic hegemonic currency” — a
digital basket of reserve currencies — as
recently proposed by outgoing Bank of
England governor Mark Carney.
While these are intriguing possibili-
ties, they are improbable in the near
Stimulus has
kept global
growth on track
ECONOMY
Martin
Sandbu
T
he right remedy for the
trade cycle is not to be
found in abolishing booms
and thus keeping us perma-
nently in a semi-slump; but
in abolishing slumps and thus keeping
us permanently in a quasi-boom.”
Thus wrote John Maynard Keynes in
1936. More than 80 years on, his insist-
ence that governments should continue
to stimulate demand even in a pro-
longed upswing is newly relevant.
The long, slow recovery from the
2008 financial crisis shows how con-
cerns that demand stimulus had
exhausted its purpose and should be
dialled back have been at best prema-
ture. So what have we learnt? The les-
sons are remarkably similar in all
advanced economies.
First, demand stimulus works. That
simple observation faces surprising
resistance. But those who reject stimu-
lus because the economy is still in the
doldrums and inflation below target
have it the wrong way round. The fact
is that a persistent expansionary policy
— monetary stimulus everywhere, and
fiscal stimulus in the US and a few other
places — has kept growth on track well
beyond the length of typical economic
Supporting your local high street is the best way to be green
SOCIETY
Izabella
Kaminska
T
here’s nothing like the hol-
iday period to make you
realise just how big your
environmental footprint is.
From the endless packag-
ing, wrapping paper and wasted food
to the electricity commandeered by
festive lighting, for many, Christmas is a
time when consumption is celebrated
for consumption’s sake.
But this Christmas I learnt how to
keep a check on it all without wanting,
Scrooge-like, to destroy the holiday
altogether. Forgoing online shopping
on sites like Amazon and Ocado in
favour of the local high street can make
a real difference in terms of plastic con-
sumption, fuel expenditure and the
Digital currencies will not displace the dollar
term. Improvements in payment tech-
nology may have lowered the cost of
switching from cash to digital pay-
ments, but there is little evidence they
have done much to reduce the expense
of moving among currencies. Such costs
are non-pecuniary. Widely-held percep-
tions of the dollar’s safety and stability
have kept it dominant in the interna-
tional monetary system for decades.
The dollar holds strongly reinforcing
roles in trade invoicing — it accounts for
five times the US share of world trade —
and global banking. These have created
large network effects: the more people
use the dollar, the more useful it
becomes to everyone else. This has been
reinforced as emerging markets, which
rely extensively on the dollar, increase
their share of global economic activity.
Their share of global domestic product
now stands at 60 per cent.
Advances in payment technologies do
not address fundamental issues of what
it takes to be a global reserve currency.
Consider the euro, which has been the
leading contender to replace the dollar
over the past 20 years. Its impact on the
dollar’s dominance has been modest at
best, owing to financial fragmentation,
inadequate fiscal risk-sharing, and slow
recoveries, and more stimulus has
tended to go with more growth.
This has pushed unemployment
down and created more jobs than
observers thought was safely possible.
The “Phillips curve” that warns of infla-
tion rising when labour markets
become too tight has been quiescent.
Second, the longer demand keeps
expanding, the greater the benefits
for the least fortunate. Those on the
margins of the labour market are typi-
cally hurt first and worst in a downturn.
Conversely, only when the economy is
kept in Keynes’s “quasi-boom” does it
bring them towards acceptable levels of
unemployment and wage growth.
In the US, according to researchers
associated with the US Federal Reserve,
“when the unemployment rate of
whites increases by 1 percentage point,
the unemployment rates of African
Americans and Hispanics rise by well
more than 1 percentage point, on aver-
age”. In a recent paper, they found that
when labour markets are particularly
tight, this extra advantage for marginal-
ised groups becomes even stronger. In
this sense, aggressive demand stimulus
becomes more, not less, beneficial the
longer it goes on.
We can see this phenomenon in many
of the numbers and stories that describe
the current state of our economies. In
the US and the UK, recent wage growth
has been strongest for those paid the
least. In much of Europe, more of the
population has a job than ever before.
Anecdotes abound about those previ-
ously given up as hopeless cases —
purchase of excess food that is never
eaten. Supporting the shops on your
high street as much as you can is prob-
ably one of the easiest and greenest
things you can do. Especially if, like me,
you only live a five-minute walk away
and are able-bodied enough to carry
groceries.
There’s no doubt it’s expensive rela-
tive to the bargains you can get online or
in car-friendly supermarkets. But, as we
are finally learning, there is more to the
cost of produce than simply the price.
There are also worthwhile offsets
based on the sheer friction of having
to go to the high street and carry your
purchases home. Click-happy impulse
purchases don’t happen when you’re
limited to what you can comfortably
transport in person. That makes shop-
ping more informed and discerning,
saving on waste.
There are other advantages, too.
If you’re lucky, the local grocer, fish-
monger, butcher and delicatessen will
provide a fantastic range of seasonal
local produce, which saves on the
★ FINANCIAL TIMES
Opinion
progress on the euro area’s governance
framework. Uncertainty about the long-
term stability of the eurozone does not
help. It is difficult to imagine how tech-
nology would address these issues.
The dollar’s status is bolstered by the
institutions, rule of law, and credible
investor protection that the US is seen as
providing. Simply raising the supply of
an alternative currency will not be
Technology can improve
financial inclusion
but cannot solve
this problem alone
enough to surmount these consider-
ations. Chinese efforts to internation-
alise the renminbi have met only lim-
ited success despite a policy push and
liquidity support through bilateral
swaps with more than 30 central banks.
When sovereign governments, inves-
tors, and traders are confronted with
digital currency choices, they are likely
to reassess what currency to use for
transactions across borders. Their
choice will be based on many of the
former drug addicts and ex-prisoners,
for example — now being not just hired
but trained to earn their keep by
employers struggling to fill vacancies.
We are entitled to hope for a third les-
son: that the historical pattern of pro-
ductivity increasing in an upswing will
also come through this time. The reason
for procyclical productivity is that
robust demand growth creates incen-
tives for businesses to do more with the
same resources once it becomes difficult
to expand by just hiring more.
We have been lucky in that many poli-
cymakers, especially central bankers,
have been more willing to believe their
eyes than their theories. They have seen
their policies working for longer than
expected. They have noted the positive
results — often highlighting the lack of
Without it, policymakers
would have caused
unnecessary slowdowns
or downturns
energy expended in flying in stuff from
halfway across the world. What’s more,
goods are often freely displayed and
then wrapped in biodegradable paper
for taking home.
Compare and contrast that with the
huge amounts of packaging and fuel
expended in online delivery. From
the endless cardboard boxes to the poly-
styrene and bubble wrap on non-perish-
able purchases and the never-ending
We are finally learning
that there is more
to the cost of
produce than the price
single-use plastic on anything fresh.
Then consider unbundled deliveries,
which can see products ordered simul-
taneously delivered separately and at
different times. And last but not least,
the fact that the information technology
sector, especially servers, uses huge
same factors as in the past — liquidity,
stability, convertibility — but also new
concerns, such as the technological
superiority of the issuing country. This
latter issue could become a decisive fac-
tor, given legitimate concerns about pri-
vacy and security with digitised monies.
Few sovereigns will meet such crite-
ria. The US may parlay its leadership in
combating global money laundering
and terrorism finance into making the
dollar the dominant digital currency.
Despite high hopes, it is difficult to see
how technology can hasten the creation
of a “synthetic hegemonic currency”.
Trade and financial contracts continue
to be denominated overwhelmingly in a
single currency, rather than a basket of
currencies. For such a public synthetic
alternative to work, central banks,
whose currencies underlay it, would
have to co-ordinate to ensure its stabil-
ity and reduce perceived risks. But glo-
bal needs can conflict with monetary
policy objectives at home, significantly
reducing the attraction for leading
reserve currencies to participate.
Digital currencies issued by big tech
firms would undoubtedly have some
advantages relative to fiat currencies.
Large-scale offerings such as China’s
inflationary pressures, the benefits of
driving employment higher for those on
the margins, and the possibility that
supply capacity adjusts to satisfy
demand pressures.
Because of this sensitivity to eco-
nomic reality, the end of demand stimu-
lus has been postponed many times.
Without it, more policymakers would
have caused unnecessary slowdowns or
downturns — as the eurozone did by
tightening fiscal and monetary policy
in 2011.
But avoiding unforced mistakes is not
enough for sound policymaking. At a
minimum, the experiences of the past
decade call for a much more tolerant
attitude to stimulus, whether from
finance ministries or central banks. Bet-
ter still would be to incorporate this data
formally in the formulation of policy
targets — whether central banks’ man-
dates or rules for government budgets.
In practice, this could mean at least
three things. One would be to increase
the burden of proof for scaling back
stimulus on the grounds that the econ-
omy had reached full capacity. That
amounts of power in its own right, push-
ing it close to the levels consumed by the
airline industry.
If shopping on Amazon makes you
feel guilty (and it should, since the com-
pany emitted 44.4m metric tonnes of
carbon dioxide in 2018), but you go
ahead with it anyway for convenience’s
sake, it is worth considering that it’s
very unlikely we can move ahead with
environmental goals without making
our lives more inconvenient. Inconven-
ience is at the heart of sustainability.
Former US vice-president Al Gore inad-
vertently acknowledged this when he
named his 2006 climate awareness film
An Inconvenient Truth.
Convenience, however, is relative. If
we all slow down together to compen-
sate for the additional time needed to do
things more sustainably, there’s nothing
really lost in terms of relative perform-
ance. On the contrary, there are benefits
to be gained as well.
My grandmother used to buy sauer-
kraut from large reusable barrels in
local markets in Poland. She’d bring her
WeChat Pay offer seamless integration
of multiple services on a single plat-
form, combined with a low-cost and
user-friendly payment system. Even so,
the likelihood that one would give rise to
a distinct unit of account disconnected
from a fiat currency is remote, not least
due to the complex regulatory and juris-
dictional issues involved.
The international monetary system
needs work. We need cheaper and faster
cross-border payments: currently, set-
tlement of cross-border remittances is
slow, costly, and burdensome to those
least able to afford it. Technology can
bring quick gains here and improve
financial inclusion. Recognising its
potential and risks, the G20 has asked
the IMF to look at the macroeconomic
implications of global stablecoins.
The world would also benefit from a
more balanced system in which the euro
and the renminbi have a bigger role. But
technology cannot solve this problem
alone. It takes old-fashioned develop-
ment of institutions to improve the euro
area’s architecture and resilience, and
stronger domestic institutions and fur-
ther liberalisation of markets in China.
The writer is IMF chief economist
would avoid premature tightening —
and the subsequent need to loosen.
Another would be to shift the focus
from how the economy performs on
average to how it performs for those on
its margins. All-economy (un)employ-
ment and inflation rates could be com-
plemented by explicitly taking account
of labour market and wage performance
for vulnerable groups, trading off higher
tolerance for overall inflation risk
against greater expected benefits for
those often left by the wayside.
Third, the effect of demand pressure
on productivity growth could be explic-
itly included in forecasts.
Such steps could introduce an infla-
tionary bias — but only if there was no
risk of leaving unused economic capac-
ity on the table. But as the past few years
have shown, that risk is real. In the
1980s, economic theory concluded that
responsible macroeconomic policy
required policymakers who were more
hawkish than voters. Today, we need
the opposite.
martin.sandbu@ft.com
own glass jar for the purpose. She’d then
pop along the high street to source food
for the next few days, taking it all home
in her granny trolley. In doing so, she
not only did her shopping, she got the
lowdown on what was happening in the
local community. She also enjoyed a
sense of belonging and purpose and got
some very useful moderate exercise.
All of this suggests that supporting the
local high street should become the
green thing to do. By helping to foster a
sense of local community, it gives people
a vested interest in maintaining and
looking after the local habitat.
It’s not that we have to entirely aban-
don online convenience. Just that we
have the means and choice to be flexi-
ble. Simply doing a bit more shopping
on the high street is enough to make a
difference.
So let 2020 be the year the high street
makes a comeback for the environ-
ment’s sake. The revival of the granny
shopping trolley is optional.
izabella.kaminska@ft.com
9
The Big Four
must rethink
the purpose
of auditing
Jane
Fuller
T
his year could be a critical
one for corporate auditing.
For the second time in this
century, a series of scandals
is forcing the Big Four
accountancy firms to rethink their
business models.
After the 2001 collapse of Enron,
tighter US rules on selling other services
to audit clients led KPMG, Deloitte, EY
and PwC to sell or spin off their consul-
tancy arms, but those businesses have
regrown so robustly through sales to
non-audit clients that audit revenues
make up only a fifth of the Big Four’s
total revenue.
Now a set of high-profile UK failures —
Carillion, Thomas Cook and BHS — have
reignited concerns about conflicts of
interest and a new regulatory drive to
split up the Big Four. This time the
auditing profession should take advan-
tage of the opportunity, pull away from
consulting entirely and refocus on the
users of corporate accounts and the
public interest. There are several regu-
latory initiatives pending, including
new international auditing standards
requiring an increase in the disclosure of
“key audit matters” — the most signifi-
cant issues that came up in any com-
pany’s audit — and a UK proposal for
audit to be operationally separated
from other activities.
Stricter enforcement is already pro-
viding a stick to motivate change. The
UK Financial Reporting Council levied
almost three times more penalties on
accounting firms in 2018-19 leading the
Big Four to set aside £162m to pay
future legal claims and fines. But where
is the carrot? So far, audit fees have held
up despite rules forcing companies to
The profession should
pull away from consulting
and refocus on users
of corporate accounts
tender their audits more frequently.
Investors may even be willing to pay
higher bills for higher quality audits.
After all, they — and their computerised
stock screens — rely on the audited
accounts in the investment process.
But this debate is about more than
money. Donald Brydon’s review of UK
auditing last month called for the crea-
tion of a new corporate auditing profes-
sion, separate from accountancy. Its
ethical principles would go beyond
integrity and independence to empha-
sise acting in the public interest and
challenging management. Importantly,
the new profession would promote a
forensic accounting mindset — with a
place for suspicion — and make clear
that auditors must watch out for fraud.
Auditors should also be encouraged to
look outwards, beyond company execu-
tives, by giving them a duty to alert
regulators if they have concerns about a
company’s financial viability. They
could also become an official port of call
for whistleblowers. More positively,
firms can use external contacts to help
improve audit quality by asking inves-
tors to suggest questions and concerns
about corporate accounts.
The audit market is set to change in
2020 just as much as it did nearly 20
years ago. At that time, the US created
the Public Company Accounting Over-
sight Board to protect investors and the
public interest. Now the PCAOB is push-
ing US auditors to follow their interna-
tional colleagues and give investors
more information about the most
important issues, which they call “criti-
cal audit matters”. Meanwhile the UK is
set to replace the FRC with a new Audit,
Reporting and Governance Authority
that is expected to have similar clout to
its US peer in dealing with auditors and,
importantly, company directors.
Auditors should see these changes as
an opportunity, not a threat. As their
autonomy from consulting increases,
they can rebuild the reputation of their
profession. Opportunities also abound
as investors seek independent audits of
alternative performance measures
including those applied to environmen-
tal, social and governance factors.
Audit firms will be more attractive to
talented recruits if they are seen as serv-
ing the interests of savers, lenders and
the economy. That is what the public
interest in capital markets is about — a
prize well worth pursuing.
The writer is a former member of the FRC’s
Audit and Assurance Council
 10 ★ FINANCIAL TIMES Wednesday 8 January 2020

Dassault Aviation: flight taming

The French aerospace manufacturer said yesterday that deliveries of its Falcon business jets were lower
than expected last year. That follows a trend of lower private-jet shipments over the past decade. However,
deliveries of its Rafale military jets picked up, with orders from Egypt, India and Qatar on the books.

Twitter: @FTLex US and European business-jet activity Dassault Aviation

Premier Oil/BP:
well to do
Oil majors have been bailing out of the
North Sea. Premier Oil is diving deeper
into it. The London-listed oil and gas
producer announced $871m of
acquisitions in the region yesterday.
Shares jumped 16 per cent, despite a
planned $500m equity raise for an
explorer with a market value of $1.3bn.
These are big sums for smallish
Premier. It will acquire operating
stakes in five producing fields and a
27.5 per cent non-operating stake in
another from BP for $625m. It has also
consolidated its ownership of its
Tolmount project, purchasing a 25 per
cent stake from partner Dana
Petroleum for up to $246m.
These give the North Sea specialist
much-needed cash flow. Premier
forecasts an extra $1bn in cumulative
free cash flow by the end of 2023, up
over current estimates by at least half.
That should allow it to reduce its net
debt pile, the main drag on its shares
for the past five years despite a 2017
refinancing. Not everyone is convinced.
Major creditor Asia Research and
Capital Management, a hedge fund that
holds more than 15 per cent of the
company’s debt, has vowed to try to
block the debt restructuring that
accompanies the deal. It objects to a
plan to extend debt maturities from
2021 to 2023, arguing that Premier’s
focus should be on paying down what it
owes rather than rolling it over at
higher interest. Adding $600m of
decommissioning liabilities due after
2025 makes the deal a case of cash flow
now, costs later, says ARCM.
ARCM’s arguments are misplaced.
Deleveraging is not enough; Premier
needs growth. Tax loss credits make
the acquisitions more attractive. The
complaints are also futile. Holders of
almost 73 per cent of the senior debt
have committed to back the
refinancing. ARCM’s 17 per cent short
position in Premier’s stock, ostensibly
to hedge its debt exposure, colours its
obstinacy. The real objection — which
justifies staying short — should instead
be that smaller drillers such as Premier
can only extend their existing strategy.
The climate crisis means that
scooping up cast-off assets in a region
where Premier has operated for 50
years is not enough. No matter what it
does with its balance sheet Premier still
cannot make the transformational
investments that BP and Royal Dutch
Shell are at least attempting. That
explains why Premier’s valuation has
sunk with each passing year.
That will not change with this deal.
Uber/Hyundai:
not fare
Commuters can only dream of flying
above congested roads at 290kph. US
ride-hailing group Uber and South
Korea’s Hyundai want to release
terrestrial drivers with flying taxis —
Blade Runner 2049 style. But those sat
in Seoul and San Francisco road jams
should keep dreaming. The launch is a
cause for concern for shareholders
weary of expensive blue sky projects.
Yet Uber has high hopes for a
passenger market meant to be worth
about $850bn in two decades. It wants
to create an electric, four-passenger air
taxi, made by Hyundai, and would like
it eventually to be autonomous. It aims
to start Uber Air test flights this year
and to roll out commercial operations
within three. That timeline is too
optimistic. Policies over aviation
standards, safety and noise have yet to
be drawn up. The technology is
untested: the poor power-to-weight
ratio of batteries is a challenge. And
autonomous driving barely works on
the ground. Setting up infrastructure —
charging stations, landing and take-off
stations — requires heavy investment.
First mover risks are plentiful.
Speaking of science fiction, look at
the two companies’ financial positions.
Neither can afford this venture without
external funding. Uber’s strategy
already spends heavily to grow market
share. Hyundai faces headwinds from
slowing sales in China, its biggest
market, and had negative free cash
flow in the nine months to September.
Its group net debt, bolstered by its
auto-finance arm, is worth six times its
2020 forecast ebitda.
Even so, Hyundai wants to spend
$1.5bn on air-mobility cars in the next
five years on top of its hefty spending
for electric-car research. That is
significant given average annual group
investment of $2.6bn since 2016. Uber’s
share price has fallen about a quarter
since listing last May, while Hyundai’s
have gone nowhere for a year.
Flights of fancy are nothing new for
Trailing 12 months, % change
US
2014 15
FT graphic Sources: FAA; Eurocontrol; Berenberg; S&P Global
Last year 1,500 private jets flew in
participants for the World Economic
Forum at Davos.
With climate change high on the
agenda, worthy attendees may opt
for a greener form of transport to this
month’s jamboree.
Some have already climbed down
from their company jets: French
manufacturer Dassault Aviation
reported yesterday that deliveries of
its Falcon jets fell short of
expectations last year.
Private-jet demand has been
bolstered by chief executives with
global briefs, who accounted for an
estimated 60 per cent of Dassault’s
business-jet deliveries. So
globalisation’s waning popularity has
hurt this bastion of capitalism too. In
technology groups. Shareholders of
both companies, though, need plans
that are grounded in reality.
One Medical:
doc of the Bay
Silicon Valley’s love affair with non-
tech start-ups is an enduring one.
Venture capital groups have a habit of
pouring money into local groups they
like. See Blue Bottle Coffee and grilled-
cheese sandwich chain The Melt. San
Francisco’s One Medical is about to see
if public markets feel the same way as
it prepares for an initial public offering.
As a private company the chain of
primary healthcare providers (aka
GPs) has raised over $500m. Its last
10
8 60
Europe
6
4
2 Valuations
0
-2
-4
-6
16 17 18 19
* ex-net cash and Thales stake
the US, the world’s largest private-
business aviation market, international
flights fell 8 per cent in the year to
November.
In Europe activity has slowed in each
of the past 15 months.
Dassault has struggled more than its
peers after production issues forced it
to can its Falcon 5X programme in
2017. That enabled Gulfstream and
Bombardier to grab share in the large
body — longer journey — business-jet
market and helps explain why
Dassault’s share price has fallen to
three-year lows.
Yet Dassault’s bigger defence unit
remains aloft. Rafale fighter-jet
shipments were strong last year and
have potential to grow again this year.
India, a big buyer of these jets, has an
valuation is reported to be $2bn.
Generous funding means the 77 US
offices are central and stylish. Users
like the same-day appointments. Deals
with hospitals mean that One Medical
claims it can cut healthcare costs for
companies. High-profile clients like
Airbnb have helped to boost its profile.
Google not only owns 6 per cent of the
business but is a big customer,
accounting for a 10th of revenue.
Recurring revenue from
subscriptions of $199 a year for
individuals also sounds good. But
revenue per member was about $500
for the first nine months of the year,
meaning subscriptions account for less
than half of the total. The rest comes
from more opaque deals with health
networks and insurers.
This is where the logic for the current
Deliveries
100
Falcon
80
40
Rafale 20
0 Active fund managers may gaze at
2007 09 11 13 15 17 19
Enterprise value to forward ebit
Boeing
Airbus
General Dynamics
Bombardier
Textron (Cessna)
Embraer
Dassault Aviation
Dassault Aviation*
0 5 10 15 20
outstanding requirement for more
planes.
At nine times enterprise value to
forward operating profits Dassault
shares are already at a one-third
discount to the aerospace sector.
Strip out underlying net cash of
€2.8bn, plus its 25 per cent holding of
defence group Thales, and that
discount doubles, according to
Berenberg.
Moreover, Dassault’s business jets
have not been grounded for good.
This division should pick up with the
release of its new Falcon 6X,
expected in 2022.
Even if its business may not suit
the lofty ideals espoused at Davos,
Dassault looks cheap enough to
deserve more investigation.
valuation stumbles. One Medical
claims primary healthcare is a $260bn
market. In the first nine months of the
year revenues rose 29 per cent to
$199m. Extrapolate those numbers for
the rest of the year and One Medical is
valued at about eight times trailing
revenue. It is likely to seek a higher
multiple when it lists.
Yet if the potential market is so big,
why is growth not more impressive?
And why does One Medical have to
spend so much to achieve it? Sales and
marketing costs nearly doubled over
the period, meaning a net loss of $34m.
Healthcare is ready for more digital
disruption and One Medical is popular.
But it lacks profits and blockbuster
growth. Being based in San Francisco
and Google being a client is not enough
to warrant a tech-style multiple.
Franklin Templeton:
active failure
what has happened to Franklin
Resources, parent of Franklin
Templeton, nervously. Not many fund
managers have underperformed world
markets so comprehensively for years.
Its market value has halved over five
years. The success of passive index
strategies will be blamed. Yet that
ignores strategic errors and poor
performance by its star managers.
To justify their fees, some active fund
managers have been making bolder
and more concentrated bets. Some
wagers have delivered. But many
others have not. Franklin Templeton’s
star manager, Michael Hasenstab, has
revealed the limits of this strategy.
Best known for his contrarian bets,
he oversees some $100bn at Franklin
Templeton. This includes the flagship
Global Bond Fund, which ended 2019
up just 0.6 per cent, net of fees. His
fund sits behind 95 per cent of its
peers. Its assets have shrunk from a
peak of $73bn in 2013 to under $27bn
after investors pulled out another
$4.6bn in the first 11 months of 2019.
Bad bets scare off even the hardiest
investors. As assets under management
have fallen, Franklin’s costs have not
adjusted quickly enough. By
September its operating margins had
fallen by more than eight percentage
points over three years.
Its shares fell more than 12 per cent
in 2019, making it the only big listed
fund manager in the S&P 500 Asset
Manager index to decline. T Rowe Price
in comparison last month forecast
higher-than-expected expenses for its
investment teams. That has not hurt its
share price at all.
Franklin Resources has been slow to
react to the rise of passive investing. It
launched its first suite of passive ETFs
only in 2017. State Street and
BlackRock both have sizeable ETF
businesses. T Rowe Price has found a
niche in retirement products. With
Jennifer Johnson set to take over as
Franklin Resources’ chief next month,
just meeting the benchmark of her
peers is not an option.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

Today’s temperatures
PRESSURE LABELS
1030
Amsterdam Cloudy 12 Malta Fair 14
Athens Fair 9 Manila Fair 32
1010 9 4 0 9 4 0
Bangkok Sun 35 Melbourne Fair 24
5 5 Barcelona Fair 16 Mexico City Sun 22
LOW HIGH 5 950 950
4 Seoul LOW Beijing Fair 5 Montreal Snow -1
1 0 3 0 Beijing 9 6 0 9 6 0
5 12 Berlin Rain 9 Moscow Cloudy 2
HIGH Tokyo Brussels Rain 13 Mumbai Sun 29
970 970
Islamabad 7 Budapest Fair 3 Munich Cloudy 5
LOW Shanghai 1000 9 8 0 Sun 9 8 0
Buenos Aires 33 Nairobi Rain 24
1010 LOW 1020 1010 Chicago Sun
990 990 -4 New York Fair 6
Delhi HIGH 19
Copenhagen Cloudy 10 Oslo Sun 8
Kolkata Taipei 1
Dallas Sun 0 0 0 1 0 0 0 18 Paris Cloudy 13
24 24 Delhi Rain 17 Perth Sun 29
27 Hong Kong 1010 1010
Mumbai Hanoi Doha Sun 23 Prague Cloudy 4
33 Dubai Sun 1020 1 0 2 0 27 Rio Thunder 33
Yangon
32 Dublin Cloudy 8 Rome Sun 14
35 Manila 1030
Edinburgh Fair 1030 7 San Francisco Fair 14
Bangkok 1010 1040
Frankfurt Rain 1040 8 Seoul Cloudy 4
34 Geneva Cloudy 7 Shanghai Fair 7
Ho Chi Minh City
Hamburg Rain 11 Singapore Shower 30
Colombo Kuala Brunei
32 Hong Kong Sun 24 Stockholm Fair 11
33 Lumpur
Istanbul Rain 7 Sydney Rain 25
30 31 Jakarta Thunder 31 Taipei Cloudy 19
Singapore
Johannesburg Drizzle 26 Tokyo Shower 12
32 00
5 30 Karachi Sun 23 Toronto Cloudy
00
-3
00
Kuala Lumpur Thunder 33 Vancouver Cloudy 5
33 Kuwait Sun 22 Venice Sun 8
00
Lisbon Sun 00 Vienna Fair
16 6
London Rain 12 Washington Sun 8
Forecasts by Los Angeles 00 Fair 18 Wellington Cloudy
00 16
Wind speed Luxembourg Rain 00 9 Yangon Sun 33
in KPH Madrid Sun 16 Zurich Cloudy 7

FRONT SYMBOLS Scale:

ISOBAR BRUSH
MExx COLD FRONT LINE x = 63.5
WARM FRONT LINE y = 63.5
OCCLUDED FRONT LINE

CROSSWORD ACROSS
1 Player taken off before victory
4 Supreme folkloric spirit of the
skies with no leader (8)
No. 16,368 Set by ARTEXLEN against Germany (4-6) 5 Girl chose to bake mixed
7 Start avoiding university money vegetables (5,10)
       
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9 Empty pub close to collapse (4) (6)
10 Calling for loud noises to 7 Select dress, oddly, that is
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11 Look good with Cockney woman 8 Prosper as gang from the south
(6) admits defeat (7)
  12 Motivate men heading off 14 Too eager a shot very botched
before capturing US soldiers (8) (9)
13 Urbane director receives an 16 Swimmer from south-east
   honour when retired (8) region acquiring bye (male)
15 Host involved in popular (3,5)

mystery (4) 18 Inform journalist you heard
   
17 Cultural feature this writer about alien uprising (7)
duplicated (4) 20 Turned up extract from Phoebe:
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calves, perhaps (8) 21 Begin cladding front of ugly
  
22 Bird’s to head-butt door (8) house (6)
23 Thwart outlaw sailors reported 24 Rules indoors most regularly
(6) ignored (5)
 
25 Neglected sheep attached to
tether (10) Solution 16,367
26 Apart from head, fish is & $ 1 2 3 < 6 & 5 ( : 7 2 3
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1 2 7 , 1 * . 1 ( ( ' ( ( 3
27 Large sin avoiding new tax (4) 6 7 < , 7 7 $
28 Authoritarian marks a test 2 3 , $ 7 ( ( 1 7 , 5 ( 7 <
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Wednesday 8 January 2020 ★ 11

Under water Market climate changes as Hard won Oligarchs’ reluctance to pass
city debt levels spark concern — ANALYSIS, PAGE 19 on riches reflects history — INSIDE EUROPE, PAGE 12

Goldman retail unit off to slow start Tail

Risk
3 3 per cent of group earnings 3 Reliance on traditional business 3 Faith in long-term prospects
its Apple credit card and its newly meaningful driver of growth in the com- which includes the private equity
Tommy
LAURA NOONAN — NEW YORK
acquired investment adviser United pany in the future,” he said.
‘The fact investing platform Goldman has vowed Stubbington
Goldman Sachs’ consumer division Capital — generated $256m of its $8.3bn Goldman executives privately say it it is broken to turn into a “mini-Blackstone”, made
generated just 3 per cent of the group’s pre-tax earnings in the three quarters to could take a decade for the consumer into its own pre-tax profits of $2.28bn over the nine
pre-tax earnings in the first nine the end of September. business to be at full strength, leading to months. Boris Johnson’s borrowing spree has started early. Officials
months of 2019, it has disclosed, high- The division’s net revenues for the some internal tensions as continued segment As part of the revamp of its reporting, in charge of managing the UK’s bond issuance shook debt
lighting the bank’s continuing reliance nine-month period were $3.8bn of the investment weighs on the bank’s profits. suggests Goldman has divvied up the businesses markets from their New Year slumber yesterday by
on its traditional businesses. group’s $26.6bn. In the third quarter of The biggest-earning division for the formerly grouped in its investing and announcing an extra £14bn of gilt sales in the fiscal year to
The 151-year-old Wall Street company 2019, including United Capital, it first nine months of 2019 was global it will be a lending division, reassigning them to the end of March.
disclosed divisional earnings as part of a accounted for 16 per cent of revenues markets, home to the group’s trading meaningful asset management and other units. The scale of the increase, which bumps up gilt issuance
drive under David Solomon, chief exec- and 5 per cent of pre-tax profit. unit, which has struggled with challeng- Brian Kleinhanzl, an analyst at KBW, for the full year to £136.8bn, took investors by surprise,
utive, and Stephen Scherr, finance boss, Devin Ryan, an analyst at JMP Securi- ing market conditions in recent years driver of said that investing and lending had been generating a dip in UK government bond prices at the start
to bring Goldman’s transparency closer ties, said that the businesses in which but still earned almost $3.5bn, more growth’ pulling down investors’ valuation of of the day’s trading.
to that of its rivals. Goldman has invested billions of dollars than 42 per cent of group-wide profits. Goldman, since it “never received a full The move made the UK something of a test case: will
The filings show that Goldman’s con- were at their early stages of growth. Investment banking made $2.25bn of multiple, given the volatility of reve- investors punish governments for indulging in more bor-
sumer and wealth management unit — “The fact that it is broken into its own pre-tax profits, 27 per cent of Goldman’s nues in that segment”. rowing this year? This one example suggests not.
which includes its online bank Marcus, segment suggests to me that it will be a group-wide tally. Asset management, UBS cuts wealth unit jobs page 12 A rise in UK borrowing — albeit not on this scale — had
been anticipated, given deteriorating public finances.
Spending has climbed while tax receipts have stagnated,
reflecting a slowing economy.
Out of the blue Daimler looks to merge man and motor None of the extra borrowing reflects the prime minis-
ter’s promised investment splurge, which will be included
in the March Budget. Sajid Javid, the chancellor, has pled-
Credit: Daimler AG ged tens of billions of pounds
for Britain’s infrastructure.
Bond prices quickly recov-
The UK’s early
ered from yesterday’s stum- bond spree is
ble. An auction later in the
day attracted strong demand
a test of whether
and the 10-year yield stead- investors punish
ied at about 0.78 per cent,
right in the middle of its
governments for
recent range. more borrowing
In part, this may be down
to timing. By borrowing more now, the UK can clear a
backlog before asking markets to swallow a more signifi-
cant increase in 2020-21. In addition, Mr Johnson’s govern-
ment has chosen a good moment to ramp up borrowing,
with yields around the world still close to all-time lows.
Investors in the eurozone, with trillions parked in nega-
tive-yielding debt, are likely to jump at any opportunity to
earn higher returns across the Channel.
More broadly, the market’s behaviour demonstrates
that while the arithmetic of supply and demand certainly
moves bond prices, growth and inflation are much greater
concerns. This matters in a world where monetary policy
is widely believed to have been exhausted and fiscal stimu-
lus is touted as the tool to get economies moving.
Robert Tipp, head of global bonds at US investment
giant PGIM Fixed Income, noted that Japanese bond yields
had declined for three decades, even while debt levels have
ballooned. “Issuance is just not an overall secular driver of
the market,” he said. Mr Tipp remains bullish on global
bonds, betting that big economies are likely to remain
stuck with low growth and low inflation, forcing central
banks to hold down rates.
If he is wrong, and bonds do decline, a healthier than
expected economy will probably be the reason. In the UK
and beyond, markets are likely to be resilient to a flood of
new borrowing.
Daimler shows off its ‘living organism’ concept car at Las Vegas’s CES tech trade fair. The project, developed with film director James Cameron and inspired by his 3D blockbuster
Avatar, posed the question of what comes after the combustion engine. Mercedes Benz’s answer was the concept car, designed to merge man and motor. Carmakers scramble, page 13 tommy.stubbington@ft.com

AB InBev’s thirst for renewal leaves

chief financial officer heading for exit
ARASH MASSOUDI AND LEILA ABBOUD three Brazilian founders of 3G Capital Alongside Carlos Brito, AB InBev chief
LONDON
and the Belgian and Colombian families executive, Mr Dutra has played a central
Anheuser-Busch InBev is set to replace who sold their regional beer dynasties to role in transforming the group into the
Felipe Dutra, its long-serving chief AB InBev, controls more than half the world’s dominant brewer.
financial officer, as the brewer of Bud- company’s shares. The company has spent the past 18
weiser and Stella Artois seeks to revive One of the people said that Mr Dutra’s months paying down its debt to win
its fortunes and share price, according likely exit was linked to frustration over back the support of shareholders and
State Street chief seeks to to people briefed on the matter. AB InBev’s performance since its 2016 rating agencies. In late 2018 it halved its
eke out gain amid the pain takeover of SABMiller, which left the dividend to save cash and shortly after-
The board of the world’s largest brewer group saddled with more than $100bn wards refinanced a chunk of debt. In
Asset managers have passed plenty of discussed the change at recent meet- in debt. Another said that Mr Dutra, July 2019 it agreed to sell its Australia
grief on to custody banks, such as ings, the people said. A decision may be who has been chief financial officer business before, in September, listing its
State Street, hitting profitably for a announced in February at its annual since 2005, was leaving for personal rea- Asian operation.
vital arm of the financial system. Ron results, one person said. sons. A third said that Mr Dutra was not The deals triggered a brief rally in the
O’Hanley, the bank’s boss, thinks the AB InBev replaced its chairman last being ousted and remained “widely share price, curtailed in October when
pain will continue. His solution? Sell a April, promoting Martin Barrington, the respected” within the company. AB InBev cut its full-year profit guid-
wider range of services. former chief executive of tobacco group AB InBev declined to comment. ance after a disappointing quarter. The
Analysis i PAGE 12 Altria, to the role. Altria owns 9.5 per Mr Dutra did not respond to a request shares fell 10 per cent on the day of the
cent of AB InBev and, together with the for comment. warning and have not recovered.

Companies / Sectors / People

Companies
3G Capital.....................................................11
ASML.............................................................20
Airbnb............................................................10
Altria..........................................................11,20
Amazon..................................................2,9,14
Anheuser-Busch InBev.........................11
Apache...........................................................13
Apple...........................................................4,13
Aptiv................................................................13
Arm..................................................................13
Asia Research and Capital................10
Aurora Flight Sciences.........................13
BHS....................................................................9
BMW................................................................13
BNY Mellon.................................................12
BP..............................................................10,20
Barclays.........................................................14
BioMérieux..................................................20
BlackRock...............................................10,12
Bloomberg...................................................12
Blue Bottle Coffee..................................10
Boeing............................................................13
Bombardier.................................................10
British Airways............................................7
British American Tobacco................20
Brunel Pension Partnership..............14
Burford Capital.........................................12
Byton...............................................................13
Carillion...........................................................9
Clariant.........................................................20
Daimler...........................................................13
Dana Petroleum.......................................10
Dassault Aviation.............................10,20
Deloitte............................................................9
EY.......................................................................9
ExxonMobil..................................................13
Facebook........................................................9
FireEye..........................................................20
Ford..................................................................13
Franklin Resources.................................10
Franklin Templeton.........................10,19
Gap...................................................................14
Goldman Sachs..........................................11
Google.........................................2,4,10,13,14
Great Wall Motors...................................13
Gulfstream...................................................10
Hyundai...................................................10,13
ITV......................................................................7
Imperial Brands.......................................20
Infineon.........................................................20
Invesco...........................................................19
JAC Group...................................................13
KPMG............................................................8,9
Kellogg..........................................................20
Kia Motors...................................................13
LGPS Central.............................................14
Lazard Asset Management...............12
Lukoil..............................................................12
Lululemon....................................................14
M&C Saatchi.................................................7
MNG Jet...........................................................1
Marks and Spencer...............................20
Megvii.............................................................19
Microchip Technology.........................20
Micron Technology...............................20
Muddy Waters...........................................12
Nissan....................................................1,13,14
Northern Trust..........................................12
Ocado.........................................................9,20
One Medical...............................................10
Pandora........................................................20
Pier 1 Imports...........................................20
Pier One Imports.....................................14
Premier Oil...........................................10,20
Publicis.............................................................7
PwC....................................................................9
Renault...........................................................13
Rentokil........................................................20
Rollins............................................................20
Royal Dutch Shell...................................10
Saatchi & Saatchi......................................7
Sistema..........................................................12
Sonos..............................................................14
Sony.................................................................13
State Street...........................................10,12
T Rowe Price.......................................10,19
Tesco.............................................................20
Tesla..........................................................13,13
Thales............................................................10
The Melt.......................................................10
Thomas Cook..............................................9
Total................................................................13
Toyota............................................................13
UBS..................................................................12
USM.................................................................12
Uber...........................................................10,13
Victoria’s Secret.......................................14
Volkswagen.................................................13
WPP...................................................................7
Waymo...........................................................13
WeChat............................................................9
WeWork...........................................................8
Western Digital........................................20
Zotye...............................................................13
Sectors
Aerospace & Defence................8,10,20
Automobiles.................................1,10,13,14
Banks....................................................11,12,14
Chemicals....................................................20
Energy............................................................13
Financial Services....................9,12,14,19
Financials......................................9,10,12,19
Food & Beverage..............................11,20
Healthcare............................................10,20
Media................................................................7
Oil & Gas..........................................10,13,20
Personal & Household Goods........20
Retail....................................................9,14,20
Support Services....................................20
Technology..................2,4,10,13,14,19,20
Tobacco........................................................20
Transport.....................................................10
People
Alekperov, Vagit......................................12
Babla, Chet..................................................13
Barrington, Martin...................................11
Blessing, Martin........................................12
Brito, Carlos.................................................11
Buffett, Warren.........................................12
Christmann, John.....................................13
Chung, Euisun............................................13
Crozier, Adam..............................................7
De Vos, Glen...............................................13
Diess, Herbert............................................13
Dutra, Felipe................................................11
Ermotti, Sergio..........................................12
Evtushenkov, Vladimir.........................12
Ghosn, Carlos................................1,8,13,14
Hasenstab, Michael..........................10,19
Johnson, Jennifer....................................10
Kalifa, Mickey...............................................7
Kallenius, Ola..............................................13
Kershaw, David...........................................7
Khan, Iqbal...................................................12
Lévy, Maurice..............................................7
Meo, Luca de.............................................13
Michae, Bill....................................................8
Muirhead, Bill...............................................7
Musk, Elon...................................................13
Naratil, Tom................................................12
Newman, Craig..........................................12
O’Hanley, Ron............................................12
Saatchi, Charles..........................................7
Saatchi, Maurice.........................................7
Sinclair, Jeremy...........................................7
Sorrell, Martin..............................................7
Toyoda, Akio..............................................13
Usmanov, Alisher.....................................12
Woodford, Neil..........................................12
Yoshida, Kenichiro..................................13

© The Financial Times Limited 2020 Week 02

12 ★ FINANCIAL TIMES Wednesday 8 January 2020

COMPANIES
INSIDE BUSINESS
Banks
RUSSIA

UBS to cut jobs in wealth unit overhaul Henry

Foy
About 500 posts face axe Tom Naratil said in the memo that the management staff with traders at the 10 % uncertain geopolitical and macroeco-
latest move “will accelerate decision- investment bank. Executives say divid- nomic outlook.
as new head attempts to Drop in the wealth

revive division’s fortunes

STEPHEN MORRIS — LONDON
UBS is preparing to cut 500 jobs in
wealth management, the latest move by
the division’s new head Iqbal Khan to
revive performance at the world’s larg-
est wealth manager.
making and time to market . . . reduc-
ing organisational duplication and
increasing business unit autonomy,
which comes with more accountability.”
About 500 jobs will be lost in the over-
haul, equivalent to 2 per cent of the
wealth-management’s global work-
force, according to two people familiar
with the plans.
The FT reported last month that exec-
ing clients into brackets based solely on
the value of their assets, rather than how
they deploy them, is no longer relevant.
unit’s pre-tax profit
in the first nine
months of 2019
UBS has been forced to start passing
negative interest rates on to its richest
clients and is also undergoing a simulta-
Oligarchs must soon
The overhaul is the first major move
by Mr Khan, who joined from arch rival 2 %
neous overhaul of the struggling invest-
ment bank, which could see hundreds
decide how to pass
Credit Suisse amid controversy three
months ago. UBS chief executive Sergio
Ermotti has charged him with reviving
Rise in the Swiss
lender’s share price
on news of the
more roles go.
Its shares rose more than 2 per cent
after the announcement but have fallen
on their empires
the fortunes of the $2.5tn wealth man- overhaul 1 per cent in the past year and lost about
agement business. Mr Khan success- a fifth of their value in three years.

Switzerland’s largest bank is merging
its private-bank financing, capital mar-
kets and sales operations with those at
the investment bank, according to a
memo yesterday seen by the FT, which
was confirmed by a spokeswoman.
The changes follow UBS’s plans,
reported last month, to break up its ded-
icated unit for the ultra-wealthy. Mr
Khan and his US-based wealth co-head
utives had become concerned the bank
was “too bureaucratic”, with some peo-
ple suggesting that several layers of
management could be eliminated with-
out damaging performance.
The memo said the changes would
allow employees to spend more time
with clients and create a “division
agnostic approach to financing” by
more closely linking wealth and asset
Financials. Custody
fully pursued a similar lending-driven
and regional strategy during his six
years at Credit Suisse.
Under Mr Khan’s predecessor Martin
Blessing, the wealth management divi-
sion suffered a 10 per cent drop in pre-
tax profit in the first nine months of
2019 as inflows slowed and clients
shifted to more conservative products,
or moved into cash, in light of a more
A
Mr Khan and Mr Naratil hope that
closing the expensive, standalone ultra-
high net worth division and folding it
into the global family office will reduce
expenses and boost high-margin lend-
ing to a wider range of customers.
They also hope to source more high-
yielding private-market investments
for clients trying to offset ultra-low or
negative interest rates, the memo says.
sk any Russian oligarch how he made his for-
tune and you will almost certainly get a well-
rehearsed, rags-to-riches story of a plucky
self-made entrepreneur who took advantage
of a lucky opportunity. Ask him how he plans
to give it away and you are likely to get a blank stare.
Tycoons who snapped up plum industrial assets in the
1990s through rigged auctions, murky bank loans or
straightforward theft, and then deftly protected their
gains through political manoeuvring and Kremlin ties
must soon contemplate how to pass on their empires.
The looming transition will be critical. A single genera-
tion of oligarchs in their late sixties or early seventies con-
trols vast swaths of Russia’s $1.7tn economy. All grew up in
a country where private property was banned for 70 years
under Soviet rule and regulations safeguarding corporate

State Street pivots towards outsourcing
Custody bank adds ‘front
office’ services to significantly
reduce client operating costs
ROBERT ARMSTRONG — BOSTON
“The industry’s pain becomes our gain,”
says Ron O’Hanley, chief executive of
State Street — providing a neat sum-
mary of his strategy for the Boston-
based custody bank.
The industry in question is not bank-
ing, but asset management, where State
Street’s key customers operate.
In recent years asset managers have
passed plenty of their pain on to custody
banks such as State Street, BNY Mellon
and Northern Trust. With revenues
under pressure from the rise of low-cost
passive investing, money managers are
less willing to pay up for custodians’
back office services: settling trades,
holding securities, keeping records and
exchanging currencies. This comes on
top of other pressures on custody banks,
notably falling interest rates and corre-
spondingly lower interest income.
State Street is expected to report reve-
nues of about $11.6bn for 2019, down 3
per cent from the year before. The
decline in profitability has been more
dramatic: in the first three quarters of
2019, return on equity, at 9.5 per cent,
was 4 percentage points lower than the
year before.
Mr O’Hanley thinks the shake-out in
asset management will continue, and
with it the pressure on custodial fees.
His solution? Sell a wider range of serv-
ices, becoming a full-service adminis-
trative outsourcer and helping money
managers take costs out of their busi-
nesses.
The centrepiece of the strategy was
the $2.6bn acquisition of Charles River
Development in July of 2018. Charles
River provides order management and
analytics tools for traders — what is
known in the asset management indus-
try as “front office” software. The vision
is that combining trading software with
State Street’s “middle office” tax and
accounting software and “back office”
custody services would allow State
Street to lower clients’ total operating
costs significantly.
Yet investors panned the deal when it
was first announced. State Street’s
shares fell 8 per cent on the day, and fell
another 40 per cent before they bot-
tomed over a year later, underperform-
ing even those of slumping peer custody
banks. That the shares have rallied since
— State Street is the best-performing
large bank stock over the past six
months — contributes to Mr
O’Hanley’s confidence in the
deal.
The idea of acquiring
Charles River had its genesis
in partnership offers State
State Street Street received from competitors to
shares have Charles River in front-office software.
rallied recently, (The other big players in the front-end
appearing to space are Bloomberg and BlackRock’s
vindicate the Aladdin platform.)
bank’s strategy Mr O’Hanley recalls with a quiet laugh
under Ron what the offers amounted to: they
O’Hanley, below wanted to sell State Street’s custody
Albin Lohr-Jones
offering to their own clients, have access
to the data the custody business gener-
ates, and control the client relation-
ships.
“Well, that sounds good; how many of
those can I have?” he says wryly. State
Street was at risk of ending up “in a posi-
tion where we would be doing all the
hard work yet being paid commodity
rates”, he said.
It made more sense to own all the
value to be gained from combining trad-
ing and custody tools, he said. “We went
from viewing the situation as purely
defensive to, ‘let’s go on the offence’.”
Mr O’Hanley, who became State
Street chief executive a year ago, knows
a thing or two about the pressure on
asset managers. He founded the
investment management prac-
tice at McKinsey and then
served as an executive at BNY
Mellon’s asset management arm
and Fidelity before joining State
Street in 2015 to run its own asset
management business — which pio-
neered the index-tracking exchange-
traded fund that has undercut tradi-
tional active managers.
Investors and their advisers have
always looked to drive down fund fees,
he said, but after the financial crisis “it
became seared in people’s brains: the
sure way to increase your investment
returns — the only sure way — is to lower
your costs”. To top it off, the relative per-
formance of active managers has been
poor since the financial crisis.
Most asset managers use trading tools
State Street’s rebound
Share price ($)
120
Acquisition of
Charles River
100
80
60
40
Jan 2018 2019 Dec
Source: Bloomberg
developed in-house, Mr O’Hanley said,
meaning there are enough potential
new clients for the Charles River busi-
ness without having to wrestle away
those who have already picked Bloomb-
erg or BlackRock.
Investors will have to trust State
Street on the strength of the deal pipe-
line for now, he said, but “front-to-
back” deals combining its traditional
and newly acquired offerings are com-
ing in faster than anticipated. “There
has only been one deal announced pub-
licly [with Lazard Asset Management],
there is a second one not public, then
there are five or six that are working
their way through [negotiations].”
Even asset managers with trillions of
dollars under management are inter-
ested in outsourcing, he said. The ongo-
ing pain means it is an industry that will
continue to consolidate, with passive
investment strategies driving out sub-
par active managers, and the most effi-
cient passive managers driving out the
less efficient.
And the winners will be decided, in
large part, by the ability to control costs.
“Twenty years ago, I don’t think you
could find a CEO in [asset management]
who could tell you, hey, what percentage
of your costs are operations,” he said.
“Now its very much on the CEOs’
agenda.”
ownership since 1991 have flexed to suit those in power.
Just as many are keenly watching the Kremlin for clues
to what Vladimir Putin may do as the end of his fourth
term as president approaches in 2024. The future of many
of the largest business groups, and thus control of Russia’s
most important economic assets, is also up for question.
“Life is not for ever. Life is a gift. You must squeeze
sweetness from this gift from God. Some businessmen, like
Warren Buffett, find sweetness in working every day. I
think we have a much more interesting time in our life
doing things other than making money,” Alisher Usmanov,
who controls the USM industrial group, told the Financial
Times last week.
Mr Usmanov said he had already drawn up plans for the
division of his $16.5bn empire, including lists of names of
those who would be offered shares.
“Many people have helped me. So I want to help my
management and my relatives by giving them my shares,”
he said. “Fifty per cent to family, 50 per cent to manage-
ment, who deserve this, in my view.” The shares would be
sold “at a friends and family price”.
Mr Usmanov’s public disclosure of a plan to step down
from his businesses is rare among Russian tycoons. Many
have sought to make themselves indispensable to their
companies or have built reporting systems where even the
smallest decisions must be
signed off by them, down to,
in one case, overtime pay for
‘We have a much
cleaners at company head- more interesting
quarters.
Aside from some form of
time doing things
advisory board or nominal other than
group of directors, typically
created on the advice of a
making money’
London-based public rela-
tions company and stuffed with friends or retired western
politicians, many lack any form of solid corporate govern-
ance structure to take over in the event of an unforeseen
change of ownership.
But they will soon need to explain to others just how to
run conglomerates that have been built and controlled, by
and large, by one man for more than two decades, sprawl-
ing across industries and sectors as a testament to their
fluctuating whims.
Some have taken tentative steps. Vladimir Evtush-
enkov, 71, in 2018 gave 5 per cent of his Sistema holding
company to his son.
Others have little idea who will run their empires when
they are gone. Vagit Alekperov, 69, who controls Lukoil,
Russia’s second-largest oil producer, has admitted that he
expects to run the company into his seventies and cannot
imagine his son taking over in the future.
Russia has much to gain from the passing of control of
many of the country’s largest business groups from one
man to a group of shareholders.
Diversified shareholdings should mean more transpar-
ent operations and stronger corporate governance. Pass-
ing on shares to trusted lieutenants would also signal confi-
dence in safeguards protecting private property, the lack
of which has damaged Russia’s standing among foreign
investors during the past two decades.
Crony capitalism, where political influence reigns and
the Kremlin-run security services and bureaucrats wield
more power than the market economy, relies heavily on a
tiny group of men controlling the biggest businesses.
The starkest illustration of this becomes evident every
December when Mr Putin summons about 50 business-
men to the Kremlin for an annual get-together. The men
who control all the biggest businesses in Russia fit around
one meeting table. Many of them have been reluctant to
share their wealth but soon will be forced to.
If every oligarch left their shares to a few dozen people,
Mr Putin would probably find he does not have a room big
enough to host them all. When it comes to reforming
Russia’s economy, that would be a welcome sign.
henry.foy@ft.com

Financial services Financials

Fillip for Burford after US class action dropped Woodford pair take £13.8m in dividends
KATE BEIOLEY
Litigation funder Burford Capital said a
class action against it in the US had
been dropped and reiterated its plan to
pursue a listing on the US stock market,
triggering a brief spike in the com-
pany’s shares yesterday.
The class action was brought by a group
of shareholders invested in a less com-
monly traded Burford security in
August last year. They alleged that Bur-
ford had made false and misleading
statements and manipulated its finan-
cial metrics to create an inaccurate pic-
ture of returns to investors.
Burford denied those allegations and
yesterday revealed the case had been
withdrawn by the plaintiffs and dismiss-
ed. The company added there was “no
litigation pending against Burford at
present other than ordinary course skir-
mishing within a small number of ongo-
ing funded investment matters”, and
said it wanted to list on the US bourse.
Shares in Burford rose by almost 14
per cent to 779p in early trading after
the update, before falling back to 708p.
The disclosure comes after US short
seller Muddy Waters attacked the com-
pany last year, accusing it of flattering
its performance and manipulating ret-
urns in an assault that led to the comp-
any losing half its market value in a day.
Burford also drew criticism from
Muddy Waters about its decision to
remain listed solely on London’s Aim
despite its size, resulting in less onerous
disclosure requirements.
Burford rejected Muddy Waters’
claims, saying they contained inaccura-
cies and “fallacious insinuations”, and
said it was to formally apply for a US list-
ing on either the New York or Nasdaq
stock exchange, and was preparing to
submit a registration statement to the
US SEC. It added that it did not plan to
issue new equity as part of the listing.
The update set out the management
shake-up promised by the company last
year after Muddy Waters’ criticism.
OWEN WALKER — LONDON
Neil Woodford and his business part-
ner shared £13.8m in dividends in his
company’s final full financial year, even
as investors deserted its funds due to
chronic underperformance.
Mr Woodford, who is in the process of
winding up his company with a skeleton
staff, received two-thirds of the final
dividend payment, which brings the
total personally reaped by Mr Woodford
and Craig Newman to £112m since 2014.
At least 300,000 investors are still
trapped in Mr Woodford’s flagship
Equity Income fund which was sus-
pended in June.
One investor caught in the fund said
the payments to Mr Woodford and Mr
Newman were “reward for absolute and
abject failure”.
He added: “UK society is crying out
for a more moral and sustainable form
of capitalism but this is the polar oppo-
site. I suspect the only reason we don’t
have a Fred Goodwin repeat scenario of
public disgrace is that legislators are too
focused on Brexit. Shame.”
The pair recently travelled to China in
an attempt to court interest for a new
business, having seen UK investors
desert the once feted manager in droves.
Mr Woodford’s company once man-
aged £15bn, but suffered heavy investor
withdrawals in its final two years and
was forced to suspend the Equity
Income fund last summer, causing
Europe’s biggest investment scandal for
a decade.
Equity Income investors are due to
receive a little more than half of their
money back this month, with 56 per
cent of the stricken fund’s assets sold by
BlackRock. But the fate of the remaining
assets, which are smaller and unlisted
companies and harder to sell, is yet to be
determined.
In 2016 Mr Woodford and Mr New-
man restructured their business in a
way that enabled them to be paid in div-
idends, reducing their personal tax rate.
Wednesday 8 January 2020 ★ FINANCIAL TIMES 13

COMPANIES

Carmakers scramble to stay ahead of trends

While futuristic vehicles were on display at CES, tech titans lead the race to create tomorrow’s ‘smartphones on wheels’
PATRICK MCGEE — LAS VEGAS
SONG JUNG-A — SEOUL
The chief executive of Toyota was on
familiar ground when he told CES, the
world’s largest electronics show in Las
Vegas, that “no one wants a crystal ball
as much as the automotive industry”.
But few people guessed his next step:
Akio Toyoda announced that the
world’s largest carmaker by market
value would, in effect, build its own
crystal ball close to Mount Fuji: a new
175-acre “smart city” powered by
hydrogen fuel cells and designed from
the ground up for 2,000 residents.
The idea is to give scientists, research-
ers and Toyota itself “a living labora-
tory” to observe how residents live a
futuristic life with next-generation tech-
nology, self-driving automobiles and a
host of internet connected devices.
The plans for “Woven City” look wild,
ambitious and rather bizarre — all the
things that CES’s 200,000 annual visi-
tors have come to expect. “You may be
thinking, ‘has this guy lost his mind? Is
he a Japanese version of Willy Wonka?’”
said Mr Toyoda.
But he said the carmaker needed to be
on top of all the trends shaping society
in the next decades: urbanisation, envi-
ronmentalism, an ageing society, the
power of 5G wireless connectivity and
the potential for artificial intelligence to
reinvent every consumer device.
In recent years CES has become one of
the biggest car shows in the world, with
carmakers desperate to show they have
a handle on tech. That trend has acceler-
ated with the Detroit Auto Show moving
from January to June from this year.
Self-driving technology, in-car video
games and concepts for 5G-enabled
vehicle connectivity dotted the show
floors while carmakers unveiled some
memorable visions of the future.
Hyundai announced it had teamed up
with Uber and would spend $1.5bn to
build flying taxis, while Chinese upstart
Byton showed how its 48-inch touch
screen dashboard could be used for
video conferencing, watching movies
and tracking your fitness.
Not to be outdone, Mercedes-Benz
parent Daimler, the world leader in
luxury car sales under pressure to elec-
trify its portfolio, teamed up with the
film director James Cameron to create a
“living organism” concept car inspired
by the film Avatar.
Ola Kallenius, the new chief executive
of Daimler, explained appropriately
that “tech and auto have merged in the
last few years”, but he then spent the
bulk of his keynote explaining how the
car was an example of how man and
machine might “literally merge” and
live harmoniously with nature.
Hyundai and Uber said they will con-
duct test flights this year for their elec-
tric self-driving air taxis for large cities,
and hope to start commercial opera-
tions within three years.
Uber sees the air service, one of the
most futuristic aspects of its vision to
become the “Amazon of transporta-
tion”, as a way to get people out of pri-
vately owned cars and into its shared
vehicle network. But the regulatory
landscape for air taxis remains largely
undefined.
Hyundai, the world’s fifth-largest car-
maker with affiliate Kia Motors, is try-
ing to catch up with bigger rivals in
emerging technologies with consumers
increasingly preferring access to owner-
ship, a trend that has contributed to a
fall in car sales worldwide.
“Our vision of urban air mobility will
transform the concept of urban trans-
portation,” said Jaiwon Shin, head of
Hyundai’s urban air mobility division.
The company hired Mr Shin, a former
Nasa engineer, last year and plans
to invest Won1.8tn ($1.5bn) in the
business by 2025. Uber said Hyundai
was the first carmaker to sign on to the
project. Boeing subsidiary Aurora Flight
Sciences is also a partner. The flying taxi
is designed to take off and land verti-
cally, with a range of 60 miles and a top
speed of 180mph.
Euisun Chung, Hyundai’s vice-
chairman, said the company would con-
tinue to collaborate with industry lead-
ers on technology developments as glo-
bal aircraft makers, carmakers and tech
firms pile into the sector.
But to many these futuristic ideas
were an inadequate response to the
challenge posed by Tesla, the electric
vehicle pioneer whose market value
exceeded $80bn this week as Model 3s
rolled off its new production line in
Shanghai, or to Waymo, the Google
‘You may be sibling whose self-driving fleet has
clocked up 20m miles of autonomous
thinking, driving.
“has this Global carmakers are grappling with
fundamental changes to their industry
guy lost his that go far beyond the well-chronicled
mind? Is he rise of electric or self-driving vehicles.
Rising use of software in vehicles, and
a Japanese widespread consumer loyalty to tech-
version of nology ecosystems such as Apple’s IOS
or Google’s Android, is seeing manufac-
Willy turers try to fathom how to remain com-
Wonka?”’ petitive amid falling traditional attach-
ment to a car brand.
The power of the tech titans has the
industry worried about becoming rele-
gated to hardware providers.
GlenDeVos, chief technology officer at
Aptiv, an automotive tech supplier, said
carmakers have been stumbling in their
efforts to become software-defined com-
panies.Tesla,hesaid,startedwithaclean
sheet and introduced over-the-air soft-
ware updates, enabling it to be a soft-
ware-first company from the start,
whereas incumbents are hamstrung by
theirlegacysoftwarearchitecture.
Furthermore, these changes are com-
ing at a time of rising pressure on their
core business, with the trade war threat-
ening global supply chains and the ris-
ing need for investment into lossmaking
electric cars sapping profitability.
The stakes for getting the technology
right are high. Cars are set to become
“smartphones on wheels,” with massive
Visitors at the computing power and autonomous
CES electronics technology, but if these systems are not
show admire a up to scratch or can be hacked it could
model of the spell disaster.
flying taxi being “If this is done wrong they become
developed by missiles on the road,” warned Chet
Hyundai and Babla, who leads the automotive team
Uber — David Paul Morris at chip design Arm.
Meanwhile, as carmakers unveiled
cities and “living organisms”, Sony sur-
prised CES by revealing a car. The tech
conglomerate said its electric Vision-S
would have 33 sensors, plenty of
screens, and an electric power train that
will be usable across a range of vehicles.
“To deepen our understanding of cars
[ . . .] we gave a shape to our vision,”
said chief executive Kenichiro Yoshida.
Additional reporting by Peter Campbell
See Lex

Automobiles. Strategy

Tesla piles pressure on rivals with China mass-market drive

Electric pioneer’s Model 3
production line intensifies
dilemmas over local tie-ups
CHRISTIAN SHEPHERD — BEIJING
Tesla delivered its first mass-market
Model 3 from its Shanghai factory to
Chinese customers yesterday, turning
the screw tighter on foreign carmakers
as they struggle to switch to electric in
the world’s biggest car market.
With the axing of generous subsidies
for battery-powered cars and ambitious
targets to increase them on the roads,
Tesla’s move has intensified the dilem-
ma for motor groups over whether to
step up electric plans or hold off until
the market improves.
China’s car market was on course for a
second year of sales declines in 2019
after shrinking for the first time in three
decades in 2018.
Some analysts think Tesla’s factory,
the first fully foreign-owned car plant in
the country, is a competition game-
changer in the electric market as it puts
pressure on traditional groups to offer
high-quality battery-powered models.
“Before [Tesla’s factory] was approv-
ed, the traditional manufacturers’ atti-
tude was wait and see, as the invest-
ments are huge and they don’t want to
make the first move,” said John Zeng, an
analyst at consultant LMC Automotive.
“Then, they realised that Tesla was
coming. They realised their competitors
are here.”
Elon Musk, Tesla’s chief executive,
put more pressure on rivals yesterday
by launching plans to build the mass-
market Model Y sport utility vehicle in
the plant. But big bets on China’s ecar
market look increasingly risky as
the worst sales fall for the market in dec-
ades raises questions over the reliance
of carmakers on Beijing for profits.
As well as the overall slump, sales of
new energy vehicles or NEVs, battery,
plug-in hybrid and fuel-cell electric
cars, have fallen for five consecutive
months since July — a trend analysts
expect to continue, with further subsidy
cuts expected this year.
Specifically, critics challenge the
strategy of some foreign carmakers,
which have committed to joint ventures research at Macquarie, adding that been better off launching its ID range of
and the production of electric vehicles 50:50 joint ventures between groups electric vehicles — a range that will be
using brands of domestic groups. such as Volkswagen, the world’s biggest sold globally — in China instead.
“There has been a disenchantment carmaker by sales, and JAC Group, Other joint venture partnerships have
with some of the cheap domestic elec- which will use the Chinese company’s run into difficulties because of changes
tric vehicles that were dominating the structural designs, a brand unique to the in regulation that have led to problems
market so much in the early days,” said JV, make less sense given the downturn. in obtaining production permits.
Janet Lewis, former head of Asian motor Ms Lewis said that VW might have Ford’s JV with Chinese carmaker
Zotye, announced in 2017, has been put
on hold because of the failure to gain a
production licence. Spotlight, BMW’s JV
with Great Wall Motors, is awaiting a
permit, but the German group expects
to gain one in time for the start of pro-
duction of the electric Mini in 2022.
At the same time, Michael Dunne,
founder of consultancy ZoZo Go, said
that government quotas for electric veh-
icles, which will rise to a target of 25 per
cent of all car sales by 2025, had put
pressure on carmakers to hasten plans
to produce battery-powered vehicles.
“The Chinese government quota sys-
tem policy has real teeth. There is no
easy workaround,” he said. But the mar-
ket reversal is making many producers
pause, he added. “Everyone is wonder-
ing if China might roll back its determi-
Elon Musk at a Model 3 launch event in Shanghai yesterday — Aly Song/Reuters nation to lead the world. Everyone is
thinking how to not commit fully.”
Robin Zhu, an analyst at Alliance-
Bernstein, said: “Within the companies,
there has come a realisation that [the
switch to electric] isn’t working. You
have seen some quite public grumbling
from investors, but from a government
point of view they still want to do this.”
Mass market producers, such as VW
and Ford, are expected to face the big-
gest problems as demand has fallen
most sharply in that segment, but even
at the luxury end there are doubts, with
some warning there may not be enough
appetite among wealthy Chinese con-
sumers for premium branded electric
cars to justify the big investments made
by these manufacturers.
All eyes are on Tesla and whether its
sales will take off. “A lot of people are
watching how Tesla does . . . Will con-
sumers warm to a more branded prod-
uct?” Ms Lewis said.
If customers opt for well-known
brands such as Tesla rather than the JV
low-value options, it adds to the argu-
ment against foreign car groups rushing
to market with JV-produced cars with
lesser-known Chinese names.

Automobiles Oil & gas

Frontrunner for Renault leadership quits Seat Total and Apache hail discovery off Suriname
PETER CAMPBELL AND JOE MILLER
Renault’s appointment of a new chief
executive inched closer yesterday after
the external frontrunner Luca de Meo
quit as head of Volkswagen’s Seat
brand.
The Italian executive will remain
employed by the German group, but has
given up responsibilities for the Spanish
nameplate that he has run for the past
four years.
Mr de Meo is the favourite to take
the helm at the French carmaker,
and the only remaining external candi-
date for the role, but must first agree
an exit package with VW as well as
joining details at Renault, according to
two people familiar with the negotia-
tions.
A non-compete clause in his current
contract forms part of the negotiations,
according to one of the people.
Seat said Mr de Meo resigned “on his
own request and in common agreement
with the Volkswagen Group”. The
brand’s finance director Carsten Isensee
will assume the presidency of Seat until
further notice.
Renault declined to comment.
Renault has been searching for a chief
executive to replace Thierry Bolloré,
who was ousted at the end of last year.
The new leader will need to deal with
an increasingly tough market in
Renault’s European heartlands, invest
in new electric vehicles, and patch up its
strained relationship with global alli-
ance partner Nissan.
Relations between the two sides has
been tested to breaking point over the
past year, following the arrest of Carlos
Ghosn in Japan in November 2018 on
financial misconduct charges that he
denies.
The French carmaker’s chief financial
officer Clotilde Delbos, acting chief
executive, is also still in contention for
the permanent position, if Mr de Meo
does not join.
Mr de Meo, who speaks five lan-
guages, has presided over a recovery of
the Seat brand from laggard at VW to
one of its fastest-growing marques, with
profits in 2018 rising 24 per cent to
€286m.
Sales for first nine months in 2019
rose almost 10 per cent, boosted by a
new range of sport utility vehicles and
strong sales in the southern European
market.
Mr de Meo, who also looked after
VW’s broader business in Spain,
was seen as a potential successor to
VW Group’s chief executive Herbert
Diess and had been passed over several
times for senior posts within the com-
pany, including at his former brand
Audi.
MYLES MCCORMICK AND
DAVID SHEPPARD — LONDON
Oil producers Total and Apache
announced a “significant oil discovery”
yesterday that they said proves oil-rich
rock formations off the coast of Guyana
cross into Suriname waters, where they
are exploring.
The companies heralded the potential
for “prolific” oil production after drill-
ing work at the Maka Central-1 well off
the coast of the South American nation
showed that the neighbouring Guyanese
Cretaceous oil play — in which rival
ExxonMobil has discovered billions of
barrels equivalent of recoverable oil and
gas — extends into local waters.
The two companies each own a 50 per
cent stake in Block 58, where the well
was drilled, after Total bought into it last
month. Shares in Apache rose 20 per
cent on the news to their highest level
since May last year. Total shares were
unmoved.
“We are very pleased with this first
significant oil discovery,” said Kevin
McLachlan, senior vice-president for
exploration at Total. “We are optimistic
about the large remaining potential of
the area still to be discovered and will
test several other prospects on the same
block.”
Exxon has discovered an estimated
6bn barrels equivalent of recoverable oil
and gas in its Stabroek block off Guyana
since it started drilling in 2015, making
the South American nation one of the
world’s most promising areas for off-
shore oil exploration.
A discovery of significant commercial
oil deposits off Suriname could have
major implications for the former
Dutch colony, which is one of the small-
est countries in Latin America and
which has a population of less than
600,000 people. Its GDP per capita was
less than $6,000 in 2017, according to
the World Bank, with bauxite mining its
largest industry, alongside some small-
scale oil production of less than 20,000
barrels a day.
John Christmann, Apache chief exec-
utive and president, said that prelimi-
nary data from the Maka Central drill-
ing “indicates the potential for prolific
oil wells”.
“Block 58 comprises 1.4m acres and
offers significant potential beyond the
discovery at Maka Central,” he added.
But analysts were slightly more scep-
tical. Bob Brackett at Bernstein said it
was difficult to judge the significance of
the find “given lack of complete disclo-
sure” in relation to it.
“The discovery could be transforma-
tional for Apache but we lack details and
currently (and highly conservatively)
ascribe no value,” he said.
14
Retail
US shopping centre vacancies hit two-decade high
Operators braced for
closures despite robust
consumer spending
ALISTAIR GRAY — NEW YORK
Vacancies at US malls have hit their
highest level in at least 20 years as land-
lords struggle to come to terms with the
age of Amazon.
More shopping centre units lay empty
across the country at the end of last year
than at any time during the past two
recessions, according to figures pub-
lished yesterday by Reis Moody’s Ana-
Former Green Beret in spotlight over daring escape
Ex-con Taylor claims role in
executive’s flight after US army
and private security career
JOSHUA CHAFFIN — NEW YORK
LAURA PITEL — ISTANBUL
As a member of the US Army’s elite
Green Berets he was trained to make
daring parachute jumps behind enemy
lines. As a security contractor he
boasted experience across the Middle
East, particularly in Lebanon, and had
overseen high-stakes kidnapping res-
cues. He had also served time in prison
for a bribery scheme involving $54m in
US defence department contracts.
In others words, Mike Taylor
appeared to have the right skills to help
pluck Carlos Ghosn, the former Nissan
chairman, from Japan, where he was
embroiled in criminal proceedings, and
spirit him to his native Lebanon.
Mr Taylor’s purported handiwork as
the orchestrator of Mr Ghosn’s daring
escape has emerged in recent days. It
began, according to Japanese media
reports, with a 300-mile trip aboard a
bullet train from Tokyo to an airport in
Osaka whose security procedures had a
soft underbelly. Mr Ghosn was then
loaded into a packing case typically used
for musical equipment to avoid pass-
port controls. From there he departed
on a private jet, arriving in Turkey,
where he swiftly climbed aboard
another private plane bound for Beirut.
Mr Taylor, 59, who transformed a mil-
itary career into a series of private secu-
rity businesses, did not respond to
requests for comment.
But he reportedly spoke publicly for
the first time about the fugitive busi-
nessman in an interview with a news
Legal Notices
Financial
★ FINANCIAL TIMES
COMPANIES
lytics. Mall operators are braced for retail apocalypse”, said Barbara Den-
store closures in the months ahead even ham, senior economist at Reis, but the
though US consumer spending remains recent data showed that “the scales may
strong. have tipped”.
Early signs have emerged of a post- At 9.7 per cent, the mall vacancy rate
Christmas reckoning for bricks-and- recorded by Reis was the highest since
mortar retailers hardest hit. its records began at the start of 2000,
Pier One Imports, a home decor when 5.3 per cent of units were unoccu-
retailer, warned late on Monday that pied. The recession the following year
there was “substantial doubt” about its pushed it up to 6.8 per cent.
ability to continue. The Texas-based Vacancies jumped again in the after-
company set out plans to close 450 math of the financial crisis, reaching a
stores after quarterly like-for-like sales high of 9.4 per cent in 2011, but land-
fell 11 per cent. lords were able to fill spaces again in the
Vacancy statistics had for several subsequent recovery.
quarters defied “anecdotal reports of a Retailers continue to benefit from a
Carlos Ghosn. Journey to Lebanon
Carlos Ghosn in Tokyo last year. The site for US military veterans, published
former Nissan chairman has fled to late on Monday.
Lebanon from Japan, where he was The site, Connecting Vets, said that
embroiled in criminal proceedings Mr Taylor had declined to speak on the
Eugene Hoshiko/AP
record about the extraction of Mr Ghosn
and whether or not he was involved. It
quoted him as saying: “The bottom line
is this guy was a damn hostage.”
Prior to the Ghosn escape, Mr Taylor
had been toiling to rebuild his security
career after his criminal conviction
while also hustling for cash. He
launched a sports performance drink
called Vitamin1.
Born in Staten Island, New York, Mr
Taylor endured an itinerant childhood.
After high school in Massachusetts, he
followed his stepfather into the army,
quickly moving into special forces.
His cold war-era speciality was
known as “special atomic demolition
Technology
Google faces patents lawsuit
from speakers group Sonos
TIM BRADSHAW
Sonos is suing Google for alleged patent
infringement of its pioneering wireless
speaker technology, in the latest accu-
sation that a big Silicon Valley com-
pany is using its might to squash
smaller rivals.
Google has denied the claims, which
come as both companies are seeking to
showcase their latest innovations at the
CES gadget fair in Las Vegas this week.
In a lawsuit filed in California yester-
day, Sonos claimed that Google unfairly
profited to the tune of billions of dollars
by “knowingly and wilfully” copying its
patented multi-room music synchroni-
sation system, both from device sales
and in data that the internet group was
able to collect through smart speakers.
The infringement of dozens of patents
came first with its Chromecast Audio
dongle and later extended with its
Businesses Google Home smart speakers, Sonos
alleged. The Southern California-based
For Sale company, which went public in 2018, is
seeking unspecified damages as well as a
ban on US sales of several Google
Business for Sale, Business Opportunities, devices, including its smartphones and
Business Services, speakers.
Business Wanted, Franchises
Runs Daily
Sonos was founded in Santa Barbara
............................................................................................................................. in 2002 and launched its first speakers
Classified Business Advertising in 2005. The company disrupted the
UK: +44 20 7873 4000 | Email: traditional hi-fi market by allowing lis-
acs.emea@ft.com teners to pipe the same music through
still healthy US economy, but mall oper-
ators have borne the brunt of the pain
from the structural shift in the sector.
US retailers announced 9,300 store
closures in 2019, according to Coresight
— the most since the group began track-
ing the data in 2012. Gap and Victoria’s
Secret were among several mall stal-
warts to announce closure plans.
9.7 % 9,300
Mall vacancy rate US store closures
recorded by Reis; announced last
the highest since year, according
its records began to Coresight
munition”. He and other operatives
were trained to jump from planes at
high altitudes, deploying their para-
chutes only at the last instant. Their
mission was to detonate portable
nuclear weapons in Germany’s Fulda
Gap in the event of a Soviet invasion.
A turning point in Mr Taylor’s life
came in the early 1980s. He was dis-
patched to Lebanon to assist Christian
militias after the assassination in 1982 of
the country’s president-elect, Bachir
Gemayel, and the Israeli invasion.
“It was through this work that Mr
Taylor would begin a life-long relation-
ship with Lebanon’s Christian commu-
nity,” his attorney wrote in a memoran-
dum arguing for a lenient sentence.
Mr Taylor left the army the next year
but returned to Lebanon to work as a
private security contractor, helping to
multiple rooms in a home without hav-
ing to lay lengthy cabling. Since then, it
has been granted more than 750 pat-
ents, covering playback control and
wireless synchronisation; five of those
are involved in the suit against Google.
Fuelled by the advent of music
streaming services such as Spotify,
Sonos grew rapidly until after 2015,
when it was challenged by the launch of
cheaper rivals to its high-end wireless
speakers, including Amazon’s Echo and
Google Home.
After pricing its initial public offering
in August 2018 at $15, its shares traded
below that level for much of last year.
Sonos stock was up around 2 per cent at
$15.92 yesterday after news of its legal
challenge to Google was first reported
by the New York Times, valuing the
company at $1.7bn.
Sonos alleged in its legal filings that
Google first gained access to its wireless
audio technology in 2013, when it inte-
grated its Google Play Music service into
the Sonos range of speakers. “On infor-
mation and belief, Google exploited the
knowledge of Sonos’s system that it
gained from this integration work to
develop its multi-room Chromecast
Audio product and infringe Sonos’s pat-
ents,” Sonos said in its lawsuit.
Google has denied any wrongdoing.
“We dispute these claims and will
defend them vigorously,” it said.
Having equalled the post-crisis high
in the third quarter, the latest figures
show that the mall vacancy rate sur-
passed it during the final three months
of 2019.
The warning signal from the property
market comes as investors await
updates on how the sector fared during
the holiday shopping period.
US retail sales between November 1
and Christmas Eve rose 3.4 per cent
from the same period a year ago, accord-
ing to figures from payments group
Mastercard, though sales growth at
physical stores was 1.2 per cent.
Several retailers were forced into
train Christian forces. He learnt Arabic,
and also courted Lamia Abboud, whom
he married in 1985.
Lebanon also appears to be where he
met George Zayek, a man who would
work for Mr Taylor’s security compa-
nies in the Middle East and was, accord-
ing to authorities, also involved in Mr
Ghosn’s escape.
Mr Taylor and his wife returned to
America and settled in a four-bedroom
house in the rustic town of Harvard,
Massachusetts. In 1994, he finally went
into business for himself, founding the
American International Security Corpo-
ration. It took on a mixture of govern-
ment and private clients, including
ABC, 20th Century Fox and Signature
Flight Support, a service provider for
private aircraft.
The New York Times Company hired
Banks
Investors call on Barclays to
phase out fossil fuel finance
ATTRACTA MOONEY AND DAVID CROW
LONDON
Barclays is under pressure to stop
financing fossil fuel companies after a
group of shareholders filed a climate
change resolution for the British bank’s
annual investor meeting, thrusting
Europe’s financial industry to the cen-
tre of the debate on global warming.
Eleven institutional investors, which
collectively manage £130bn and
include big British public pension funds
Brunel Pension Partnership and LGPS
Central, as well as 100 individual share-
holders, jointly filed the proposal.
It calls on Barclays to publish a plan to
phase out financing companies in the
energy sector, and gas and electric utili-
ties not aligned with the Paris climate
accord, which aims to keep a global tem-
perature rise this century below 2C
above pre-industrial levels.
The resolution is the latest sign that
investor focus on climate change has
extended beyond oil, gas and mining to
sectors such as banking, which provides
a vital source of capital to fossil fuel pro-
ducers.
The proposal, the first climate change
resolution at a European bank, will be
put to a vote at Barclays’ annual meeting
in May. The group called on the board to
support it, as fears grow about the finan-
cial impact of climate change.
Wednesday 8 January 2020
heavy discounts to woo shoppers, and
the scale of some promotions was
“shocking”, said Roxanne Meyer, ana-
lyst at MKM Partners.
The Reis data showed that some areas
are coping with the upheaval better
than others. The retail vacancy rate in
the fourth quarter ranged from 4.2 per
cent in San Francisco to 16.3 per cent in
Indianapolis.
Several retailers are also adapting by
more effectively combining their physi-
cal and online presence. For instance,
Ms Meyer said, there had been limited
markdowns at Lululemon, whose
upscale yogawear had been a hit.
Mr Taylor when one of its reporters,
David Rohde, was taken captive in
Afghanistan.
“They . . . set up an ‘emergency
room’. They had a whiteboard. They
were trying to negotiate,” said a person
who closely followed the efforts to free
the journalist, his fixer and driver. “I
don’t think the phone ever rang.”
Mr Rohde ended up escaping on his
own in 2009.
The wars in Iraq and Afghanistan
appeared to be a particularly rich source
of work for Mr Taylor. AISC’s assign-
ments ranged from training comman-
dos to guarding infrastructure in south-
ern Iraq and even protecting officials
investigating mass graves there for pos-
sible war crimes.
It was an Afghan assignment that led
to Mr Taylor’s downfall. According to
federal prosecutors in Utah, he was
given advance notice by an old friend
from the special forces about an urgent
Taylor had been rebuilding
his security career after his
criminal conviction while
also hustling for cash
contract request to train Afghan sol-
diers to manage their supplies.
Relying on confidential information,
AISC tweaked its submission and ended
up winning a relatively small contract
that would eventually swell to $54m in
billings. Some of the money was kicked
back to Mr Taylor’s associates, accord-
ing to prosecutors. When federal agents
caught wind of the scheme, Mr Taylor
sought to bribe an FBI agent to thwart
their investigation.
Mr Taylor eventually pleaded guilty
to one count of violating procurement
laws and one count of wire fraud. He was
sentenced to 24 months in prison but
was released after 14 months.
Prosecutors pushed back against the
narrative of Mr Taylor as an honest
patriot. They argued that he had sought
to shift the blame on to his accomplices
in an effort to save himself. They had —
mockingly — begun to refer to him as
“Captain America”, one prosecutor,
Maria Lerner, noted.
Mark Carney, the outgoing Bank of
England governor, has warned that
companies and investors need to step
up planning for climate change, arguing
that many corporate assets are at risk of
becoming worthless.
Jeanne Martin, campaign manager at
ShareAction, a charity that has co-
ordinatedtheshareholders,saidBarclays
was chosen because it lagged behind its
peersandwasthebiggestfinancieroffos-
silfuelcompaniesinEurope.
“It has one of the weakest energy poli-
cies [among banks] in Europe. Barclays
not only has some catching up to do
[with its peers] but it also needs to take a
more proactive stance on fossil fuel
financing,” she said.
According to ShareAction, Barclays
has provided more than $85bn of
finance to fossil fuel companies and
high-carbon projects since the Paris
Agreement was signed in 2015.
It said this made it the world’s sixth-
largest backer of fossil fuels, and consti-
tuted the highest level of fossil fuel
financing of any European bank,
exceeding its peers by $27bn.
Barclays said: “We are working to help
tackle climate change, and we meet with
ShareAction and other shareholders
regularly to update them on our
progress.”
Additional reporting by Patrick Temple-
West
Wednesday 8 January 2020 ★ FINANCIAL TIMES 15
16 ★ FINANCIAL TIMES Wednesday 8 January 2020

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.25% -0.37% -0.02% -0.447% -0.304% -0.118% -0.06%

0.05% 0.19% 1.60% 0.34% 0.03% 0.282% 1.57%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 08 - - Index All World Dec 08 - Jan 07 Index All World Dec 08 - Jan 07 Index All World Dec 08 - Jan 07 Index All World Dec 08 - Jan 07 Index All World Dec 08 - Jan 07 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
3,238.03 7,573.85
13,226.83 2,175.54
17,168.34 23,575.72
3,117.43 16,854.92 7,188.50 12,964.68 23,379.81 2,088.65
Day -0.25% Month 2.25% Year 16.69% Day 0.37% Month 1.50% Year 13.79% Day -0.02% Month 2.26% Year 11.74% Day 0.76% Month -0.07% Year NaN% Day 1.60% Month 0.22% Year 8.62% Day 0.95% Month -2.91% Year 0.64%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
9,075.68 28,322.06
44,091.09 1,632.69 9,579.80
3,247.86
8,570.70 42,191.92 1,575.15 9,270.80
26,498.37 3,174.19
Day 0.05% Month 2.92% Year 20.43% Day -0.91% Month -4.94% Year 0.16% Day 0.19% Month 2.47% Year 19.83% Day -0.22% Month 3.48% Year 8.67% Day 0.34% Month -4.30% Year -1.20% Day 0.90% Month -2.08% Year 2.54%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
3,104.80
28,597.78 116,308.77 6,012.35 23,723.38
40,869.47
22,728.59 40,445.15
27,677.79 110,622.27 5,799.68 2,917.32
Day -0.37% Month 1.90% Year 12.30% Day -0.49% Month 6.18% Year 32.05% Day -0.02% Month 2.48% Year 25.77% Day 0.60% Month 0.94% Year 26.58% Day 0.69% Month -2.24% Year 9.90% Day 0.47% Month -0.06% Year 14.54%

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 40742.51 41469.66 Cyprus
CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 25810.47 25656.17 Philippines Manila Comp 7840.70 7797.87 Taiwan Weighted Pr 11880.32 11953.36 Cross-Border DJ Global Titans ($) 368.37 369.51
Australia All Ordinaries 6943.60 6857.40 Czech Republic
PX 1117.64 1118.43 FTSE Italia Mid Cap 40050.05 39808.72 Poland Wig 58255.30 58603.27 Thailand Bangkok SET 1585.23 1568.50 Euro Stoxx 50 (Eur) 3763.09 3752.52
S&P/ASX 200 6826.40 6735.70 OMXC Copenahgen 20
Denmark 1121.71 1119.71 FTSE MIB 23723.38 23581.29 Portugal PSI 20 5230.07 5235.89 Turkey BIST 100 112599.92 111412.70 Euronext 100 ID 1153.09 1151.80
S&P/ASX 200 Res 5041.90 5018.30 Egypt
EGX 30 13212.66 13283.66 Japan 2nd Section 7339.74 7253.12 PSI General 3381.83 3386.10 UAE Abu Dhabi General Index 5056.74 5007.68 FTSE 4Good Global ($) 7993.53 8002.13
Austria ATX 3189.50 3202.74 Estonia
OMX Tallinn 1284.37 1278.65 Nikkei 225 23575.72 23204.86 Romania BET Index 9885.48 9865.83 UK FT 30 3282.10 3281.50 FTSE All World ($) 374.03 373.90
Belgium BEL 20 3984.73 3971.78 Finland
OMX Helsinki General 9956.70 9988.49 S&P Topix 150 1422.80 1400.33 Russia Micex Index 3078.87 3076.37 FTSE 100 7573.85 7575.34 FTSE E300 1632.69 1629.54
BEL Mid 8684.12 8690.92 France
CAC 40 6012.35 6013.58 Topix 1725.05 1697.49 RTX 1568.35 1564.18 FTSE 4Good UK 7011.30 7013.73 FTSE Eurotop 100 3172.14 3168.72
Brazil Bovespa 116308.77 116877.92 SBF 120 4729.76 4727.87 Jordan Amman SE 1827.19 1828.52 Saudi-Arabia TADAWUL All Share Index 8198.97 8206.13 FTSE All Share 4209.34 4206.97 FTSE Global 100 ($) 2018.86 2021.46
Canada S&P/TSX 60 1021.48 1018.26 Germany M-DAX 28287.08 28193.27 Kenya NSE 20 2706.38 2673.94 Singapore FTSE Straits Times 3247.86 3218.86 FTSE techMARK 100 5974.37 5965.07 FTSE Gold Min ($) 1919.92 1909.39
S&P/TSX Comp 17168.34 17105.47 TecDAX 3036.83 3001.20 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 345.78 350.31 USA DJ Composite 9372.58 9390.08 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 632.78 641.84 XETRA Dax 13226.83 13126.99 Latvia OMX Riga 1034.95 1038.18 Slovenia SBI TOP 873.85 - DJ Industrial 28597.78 28703.38 FTSE Multinationals ($) 2249.34 2246.49
Chile S&P/CLX IGPA Gen 24505.10 24342.37 Greece Athens Gen 924.69 922.77 Lithuania OMX Vilnius 723.90 721.30 South Africa FTSE/JSE All Share 57384.41 57195.35 DJ Transport 10869.79 10848.73 FTSE World ($) 665.24 665.30
China FTSE A200 11067.75 10998.30 FTSE/ASE 20 2307.72 2302.61 Luxembourg LuxX 1365.67 1365.41 FTSE/JSE Res 20 49762.13 50037.80 DJ Utilities 869.05 870.03 FTSEurofirst 100 (Eur) 4476.83 4471.93
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 28322.06 28226.19 Malaysia FTSE Bursa KLCI 1611.04 1597.76 FTSE/JSE Top 40 51154.44 50999.61 Nasdaq 100 8854.38 8848.52 FTSEurofirst 80 (Eur) 5153.63 5141.98
Shanghai A 3253.19 3230.80 HS China Enterprise 11198.75 11165.41 Mexico IPC 44091.09 44495.30 South Korea Kospi 2175.54 2155.07 Nasdaq Cmp 9075.68 9071.47 MSCI ACWI Fr ($) 566.38 566.79
Shanghai B 264.16 261.54 HSCC Red Chip 4519.67 4520.61 Morocco MASI 12138.94 12154.94 Kospi 200 291.23 288.43 NYSE Comp 13895.42 13941.80 MSCI All World ($) 2364.49 2363.12
Shanghai Comp 3104.80 3083.41 Hungary Bux 44490.80 44658.76 Netherlands AEX 609.71 607.24 Spain IBEX 35 9579.80 9600.90 S&P 500 3238.03 3246.28 MSCI Europe (Eur) 1691.43 1699.36
Shenzhen A 1874.48 1850.21 India BSE Sensex 40869.47 40676.63 AEX All Share 876.40 872.80 Sri Lanka CSE All Share 6026.09 6069.93 Wilshire 5000 32990.65 33065.14 MSCI Pacific ($) 2818.18 2852.59
Shenzhen B 974.39 969.73 Nifty 500 9805.40 9747.40 New Zealand NZX 50 11629.86 11627.32 Sweden OMX Stockholm 30 1795.51 1785.23 Venezuela IBC 98580.19 93048.36 S&P Euro (Eur) 1709.32 1705.19
Colombia COLCAP 1676.49 1658.77 Indonesia Jakarta Comp 6279.35 6257.40 Nigeria SE All Share 27339.68 26968.79 OMX Stockholm AS 688.38 686.60 Vietnam VNI 958.88 955.79 S&P Europe 350 (Eur) 1684.99 1681.18
Croatia CROBEX 2013.05 2011.29 Ireland ISEQ Overall 7246.53 7210.63 Norway Oslo All Share 1043.78 1047.16 Switzerland SMI Index 10686.80 10665.41 S&P Global 1200 ($) 2632.57 2634.94
Israel Tel Aviv 125 1617.15 1617.15 Pakistan KSE 100 41904.47 41296.24 Stoxx 50 (Eur) 3420.52 3418.62
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Jan 07 %Chg %Chg Jan 07 %Chg %Chg Jan 07 %Chg %Chg Jan 07 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 43.9 298.93 -0.87 Bp 222.5 498.80 -5.30 Asml Holding 302.0 268.40 5.30 Sony 897.2 7655.00 235.00 Bp 498.80 5.8 3.7 Premier Oil 117.75 19.9 18.2 Sirius Minerals 4.10 16.6 12.1 Tobacco 36265.95 11.9 20.8
Amazon.com 37.2 1900.61 -2.27 Royal Dutch Shell 121.4 2290.50 -18.50 Total 269.6 50.11 -0.33 Softbank . 722.5 4646.00 77.00 British American Tobacco 3406.00 5.4 4.3 Just 85.85 8.7 3.4 Avon Rubber 2405.00 15.1 15.6 Oil Equipment & Services 8519.13 10.7 -
Advanced Micro Devices 19.3 48.35 -0.04 Royal Dutch Shell 109.7 2299.00 -14.50 Siemens Ag Na O.n. 262.7 116.56 0.74 Fast Retailing Co., 459.6 63250.00 200.00 Kingfisher 228.00 5.1 3.1 Ti Fluid Systems 267.50 7.9 1.1 Goodwin 3380.00 13.4 9.4 Real Estate & Investment Servic 3037.78 9.3 29.8
Boeing 19.1 340.30 6.56 British American Tobacco 92.8 3406.00 56.00 Amadeus It 253.2 73.28 0.68 Toyota Motor 382.7 7715.00 150.00 Bae Systems 590.20 4.5 2.8 Senior 185.30 7.2 -0.4 Pharos Energy 57.80 10.7 7.6 Electricity 8292.44 9.1 25.9
Facebook 17.3 214.16 1.56 Unilever 92.7 4287.50 -37.00 Sap Se O.n. 234.3 120.10 0.54 Mitsubishi Ufj Fin,. 243.9 584.10 2.00 Imperial Brands 1947.20 4.2 3.8 Frasers 480.20 4.7 4.5 Batm Advanced Communications Ld 41.00 10.2 5.9 General Retailers 2527.00 9.0 36.8
Microsoft 13.3 158.66 -0.37 Glaxosmithkline 87.2 1762.40 -8.00 Unilever 222.7 50.51 -0.45 Tokyo Electron 218.2 23515.00 160.00 Just Eat 868.80 4.1 1.9 Greggs 2402.00 4.5 1.1 Amigo Holdings 72.70 9.5 2.8 Food & Drug Retailers 4214.58 7.8 28.0
Micron Technology 12.8 57.17 3.61 Hsbc Holdings 82.0 583.40 -1.80 Iberdrola 211.2 8.95 -0.18 Fanuc 201.0 20240.00 240.00 Ocado 1325.50 3.6 5.2 Avast 472.40 4.3 -0.5 Gem Diamonds 55.60 8.8 6.7 Gas Water & Multiutilities 5355.61 7.4 16.5
Alphabet 12.1 1398.11 0.30 Diageo 81.3 3184.50 1.00 Allianz Se Na O.n. 197.6 218.20 0.50 Hitachi, 184.8 4667.00 46.00 M&g 244.80 3.2 0.4 Gvc Holdings 920.00 4.0 0.1 Just 85.85 8.7 3.4 Index - Technology Hardware & Equipment 1786.45 7.3 91.3
Nvidia 9.9 240.70 3.64 Prudential 73.7 1442.00 12.50 Infineon Tech.ag Na O.n. 183.4 21.04 1.00 Fujifilm Holdings 181.6 5446.00 289.00 Associated British Foods 2672.00 2.8 3.6 Fidelity China Special Situations 238.50 3.7 0.8 Mears 318.00 8.2 3.9 Industrial Metals 3692.95 6.9 -
Alphabet 8.3 1397.19 2.98 Just Eat 73.6 868.80 13.60 Eni 180.1 14.32 0.00 Mizuho Fin,. 173.8 168.20 1.60 Royal Dutch Shell 2299.00 2.7 1.8 Micro Focus Int 1102.80 3.7 -0.8 Arrow Global 277.00 8.1 4.1 Household Goods 18082.76 6.1 21.7
Flutter Entertainment 9454.00 2.5 0.0 Dechra Pharmaceuticals 3002.00 3.5 2.2 Stv 437.00 7.1 5.3 Life Insurance 8077.17 5.3 19.6
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
Royal Dutch Shell 2290.50 2.5 1.5 Quilter 166.35 3.3 0.5 Raven Property 51.80 6.8 4.6 General Financial 12668.92 5.0 36.1
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Apache 32.03 6.39 24.92 Premier Oil 117.75 16.30 16.07 Infineon Tech.ag Na O.n. 21.04 1.00 4.96 Yokogawa Electric 2008.00 107.00 5.63 Nmc Health 1494.50 -15.4 -14.8 Galliford Try Holdings 136.42 -84.1 -84.6 Huntsworth 74.00 -9.1 -7.5 Personal Goods 37550.06 -4.9 6.9
Micron Technology 57.17 3.61 6.73 Vistry 1291.00 82.00 6.78 Renault 42.81 1.46 3.53 Fujifilm Holdings 5446.00 289.00 5.60 Hikma Pharmaceuticals 1882.50 -5.4 -5.2 Aston Martin Lagonda Global Holdings 435.00 -16.3 -20.6 Intu Properties 31.47 -7.4 -3.7 Mobile Telecommunications 3335.73 -3.9 -1.5
Western Digital 67.08 3.71 5.85 Helios Towers 152.80 8.10 5.60 Deutsche Bank Ag Na O.n. 7.43 0.25 3.47 Mitsui Eng & Shipbuilding Co., 911.00 40.00 4.59 Carnival 3466.00 -4.9 -5.0 Tullow Oil 57.30 -11.4 -4.0 Alfa Fin Software Holdings 111.40 -7.2 -6.9 Beverages 25272.44 0.4 13.5
Microchip Technology 109.61 5.88 5.67 Plus500 Ltd 898.80 39.00 4.54 Publicise Sa 42.26 1.16 2.82 Jgc 1803.00 72.00 4.16 Standard Life Aberdeen 314.40 -4.2 -6.4 Spirent Communications 226.50 -9.9 -8.3 Electra Private Equity 364.00 -7.0 -4.2 Electronic & Electrical Equip. 8597.81 0.4 36.0
Akamai 90.75 3.20 3.66 Ocado 1325.50 54.00 4.25 Grifols 32.60 0.87 2.74 Olympus 1744.00 68.50 4.09 Auto Trader 570.00 -4.1 -4.0 Finablr 154.50 -9.3 -10.7 Kier 89.50 -6.8 -5.5 Health Care Equip.& Services 8272.21 0.7 19.5
London Stock Exchange 7440.00 -4.0 -3.4 Hochschild Mining 168.10 -8.1 -4.7 Allied Minds 48.10 -6.6 -4.9 Aerospace & Defense 5056.19 1.2 16.0
Downs Downs Downs Downs
Easyjet 1370.00 -3.8 -4.2 Network Int Holdings 591.00 -7.8 -6.9 Medica 152.50 -6.2 -1.0 Fixed Line Telecommunication 2279.15 1.3 -
Halliburton 24.30 -1.09 -4.28 Aston Martin Lagonda Global Holdings 435.00 -85.80 -16.47 W__rtsil__ 9.70 -0.32 -3.21 Yahoo Japan 453.00 -5.00 -1.09
Hargreaves Lansdown 1872.00 -3.3 -4.6 Vivo Energy 116.40 -6.7 -6.9 Brown (n) 152.90 -6.1 -4.2 Software & Computer Services 2219.95 1.4 27.7
Baker Hughes 24.66 -0.86 -3.37 Galliford Try Holdings 136.42 -26.58 -16.31 Endesa 23.17 -0.50 -2.11 Sumitomo Metal Mining Co., 3433.00 -34.00 -0.98
British Land 618.60 -3.2 -1.5 Trainline 469.50 -6.3 -6.8 Xaar 51.80 -5.8 -1.1 Pharmaceuticals & Biotech. 17796.28 1.6 23.8
National Oilwell Varco 24.67 -0.82 -3.20 Nmc Health 1494.50 -177.00 -10.59 Iberdrola 8.95 -0.18 -1.95 Kawasaki Kisen Kaisha, 1770.00 -17.00 -0.95
Severn Trent 2474.00 -2.9 -1.6 Contourglobal 196.80 -6.3 -6.3 Puretech Health 302.00 -5.6 -4.7 Support Services 9385.52 1.7 29.1
Technipfmc 21.04 -0.69 -3.18 Finablr 154.50 -9.50 -5.79 Telenor 15.90 -0.26 -1.60 Dainippon Screen Mfg.co., 7230.00 -60.00 -0.82
United Utilities 934.00 -2.8 -2.1 Pagegroup 490.60 -6.2 -7.0 Halfords 159.90 -5.6 -6.1 Travel & Leisure 10247.62 2.1 15.7
Helmerich & Payne 45.71 -1.44 -3.05 Tullow Oil 57.30 -2.18 -3.67 Seadrill 2.08 -0.03 -1.54 Sumco 1768.00 -14.00 -0.79
Evraz 393.10 -2.7 -3.2 Puretech Health 302.00 -5.6 -4.7 Zotefoams 430.00 -5.5 -2.3 Banks 3767.89 2.6 1.8
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jan 7 Currency Mid Change Mid Change Mid Change Jan 7 Currency Mid Change Mid Change Mid Change Jan 7 Currency Mid Change Mid Change Mid Change Jan 7 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 59.8246 -0.0014 66.6532 -0.2895 78.4925 -0.2384 Indonesia Indonesian Rupiah 13875.0000 -65.0000 15458.7699 -139.4937 18204.6236 -140.3986 Poland Polish Zloty 3.8075 0.0204 4.2420 0.0045 4.9955 0.0118 ..Three Month 0.7625 0.0023 0.8489 -0.0011 - -
Australia Australian Dollar 1.4559 0.0137 1.6221 0.0083 1.9102 0.0122 Israel Israeli Shekel 3.4680 -0.0058 3.8639 -0.0232 4.5502 -0.0213 Romania Romanian Leu 4.2878 0.0207 4.7772 0.0025 5.6257 0.0102 ..One Year 0.7634 0.0023 0.8481 -0.0011 - -
Bahrain Bahrainin Dinar 0.3771 0.0000 0.4201 -0.0018 0.4947 -0.0014 Japan Japanese Yen 108.6200 0.3050 121.0183 -0.1814 142.5141 -0.0281 Russia Russian Ruble 62.0057 0.2219 69.0832 -0.0501 81.3541 0.0468 United States United States Dollar - - 1.1141 -0.0048 1.3120 -0.0040
Bolivia Bolivian Boliviano 6.9100 - 7.6987 -0.0333 9.0662 -0.0273 ..One Month 108.6198 0.3046 121.0184 -0.1814 142.5140 -0.0284 Saudi Arabia Saudi Riyal 3.7514 - 4.1796 -0.0181 4.9220 -0.0148 ..One Month - - 1.1139 -0.2018 1.3122 -0.0040
Brazil Brazilian Real 4.0854 0.0350 4.5517 0.0194 5.3602 0.0298 ..Three Month 108.6195 0.3039 121.0184 -0.1813 142.5138 -0.0288 Singapore Singapore Dollar 1.3511 0.0017 1.5053 -0.0046 1.7726 -0.0031 ..Three Month - - 1.1135 -0.2018 1.3124 -0.0040
Canada Canadian Dollar 1.3017 0.0043 1.4503 -0.0014 1.7079 0.0006 ..One Year 108.6178 0.3006 121.0186 -0.1809 142.5140 -0.0298 South Africa South African Rand 14.3160 0.0850 15.9501 0.0262 18.7832 0.0553 ..One Year - - 1.1116 -0.2019 1.3133 -0.0040
Chile Chilean Peso 769.6900 -2.0950 857.5456 -6.0481 1009.8666 -5.8004 Kenya Kenyan Shilling 101.3000 0.2500 112.8628 -0.2077 132.9100 -0.0715 South Korea South Korean Won 1166.4000 -5.7500 1299.5377 -12.0469 1530.3673 -12.1789 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.9376 -0.0368 7.7295 -0.0746 9.1024 -0.0759 Kuwait Kuwaiti Dinar 0.3032 -0.0001 0.3378 -0.0015 0.3978 -0.0013 Sweden Swedish Krona 9.4478 0.0397 10.5262 -0.0011 12.3959 0.0148 Vietnam Vietnamese Dong 23176.0000 -1.0000 25821.4447 -112.6360 30407.9839 -92.9326
Colombia Colombian Peso 3263.0000 14.7300 3635.4528 0.7796 4281.1976 6.4822 Malaysia Malaysian Ringgit 4.0930 -0.0110 4.5602 -0.0320 5.3702 -0.0307 Switzerland Swiss Franc 0.9719 0.0031 1.0828 -0.0012 1.2751 0.0002 European Union Euro 0.8975 0.0039 - - 1.1776 0.0015
Costa Rica Costa Rican Colon 571.9200 -0.8850 637.2013 -3.7425 750.3838 -3.4261 Mexico Mexican Peso 18.8845 0.0735 21.0401 -0.0086 24.7773 0.0221 Taiwan New Taiwan Dollar 30.0545 -0.0235 33.4850 -0.1709 39.4328 -0.1498 ..One Month 0.8973 0.0039 - - 1.1775 0.0015
Czech Republic Czech Koruna 22.6720 0.1026 25.2599 0.0057 29.7466 0.0454 New Zealand New Zealand Dollar 1.5076 0.0084 1.6797 0.0021 1.9780 0.0050 Thailand Thai Baht 30.1825 0.0450 33.6277 -0.0949 39.6007 -0.0601 ..Three Month 0.8969 0.0039 - - 1.1774 0.0015
Denmark Danish Krone 6.7075 0.0288 7.4731 -0.0001 8.8005 0.0114 Nigeria Nigerian Naira 363.7500 0.8300 405.2699 -0.8217 477.2557 -0.3460 Tunisia Tunisian Dinar 2.7928 0.0072 3.1115 -0.0054 3.6642 -0.0016 ..One Year 0.8950 0.0039 - - 1.1765 0.0015
Egypt Egyptian Pound 16.0705 0.0260 17.9049 -0.0482 21.0852 -0.0293 Norway Norwegian Krone 8.8545 0.0520 9.8652 0.0156 11.6175 0.0335 Turkey Turkish Lira 5.9765 0.0043 6.6587 -0.0240 7.8414 -0.0180
Hong Kong Hong Kong Dollar 7.7763 0.0082 8.6640 -0.0282 10.2029 -0.0200 Pakistan Pakistani Rupee 155.0550 -0.0100 172.7536 -0.7573 203.4389 -0.6263 United Arab Emirates UAE Dirham 3.6732 - 4.0924 -0.0177 4.8193 -0.0145
Hungary Hungarian Forint 297.4824 2.6658 331.4383 1.5514 390.3098 2.3320 Peru Peruvian Nuevo Sol 3.3286 0.0110 3.7085 -0.0037 4.3672 0.0013 United Kingdom Pound Sterling 0.7622 0.0023 0.8492 -0.0011 - -
India Indian Rupee 71.8212 -0.1163 80.0192 -0.4757 94.2326 -0.4370 Philippines Philippine Peso 50.7600 -0.1700 56.5540 -0.4345 66.5993 -0.4244 ..One Month 0.7623 0.0023 0.8491 -0.0011 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Jan 07 Jan 06 Jan 03 Jan 02 Jan 01 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 3282.10 3281.50 3296.60 3304.50 3273.90 0.00 3314.70 3245.50 Tobacco 3.56 Household Goods & Ho 0.72 Personal Goods 0.28 FTSE 100 Price Change FTSE 100 Price Change
Jan 07 chge% Index Jan 06 Jan 03 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Oil & Gas Producers 3.50 Mobile Telecomms 0.71 FTSE SmallCap Index 0.27 3I Group PLC 1086.5 -2.00 Legal & General Group PLC 307.20 2.20
FTSE 100 (100) 7573.85 -0.02 6950.98 7575.34 7622.40 6861.60 4.34 1.40 16.52 0.78 7010.73 P/E Ratio net - - - - - 0.00 19.44 14.26 Oil & Gas 3.44 Telecommunications 0.71 Electricity 0.24 Admiral Group PLC 2289 8.00 Lloyds Banking Group PLC 63.11 -0.14
FTSE 250 (250) 21832.68 0.33 20037.16 21760.53 21988.19 18175.79 2.98 1.49 22.45 4.19 17002.21 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Automobiles & Parts 2.81 Fixed Line Telecomms 0.71 Travel & Leisure 0.23 Anglo American PLC 2160 15.00 London Stock Exchange Group PLC 7440 -60.00
FTSE 250 ex Inv Co (189) 23223.30 0.31 21313.42 23152.50 23392.96 19175.99 3.12 1.39 23.06 1.95 18490.32 FT 30 hourly changes Consumer Goods 1.17 Health Care Eq & Srv 0.63 Support Services 0.21 Antofagasta PLC 922.00 13.20 M&G PLC 244.80 -1.80
FTSE 350 (350) 4262.43 0.04 3911.89 4260.67 4290.29 3807.03 4.10 1.41 17.31 0.50 7880.63 8 9 10 11 12 13 14 15 16 High Low Aerospace & Defense 1.13 Equity Invest Instr 0.61 Food Producers 0.20 Ashtead Group PLC 2398 -6.00 Meggitt PLC 659.40 -2.40
FTSE 350 ex Investment Trusts (288) 4207.83 0.02 3861.78 4206.86 4235.46 3764.97 4.18 1.40 17.14 0.42 4013.51 3281.5 3296.1 3299 3120.5 3298.4 3296.8 3284.8 3283.9 3285.3 3303 3279.6 NON FINANCIALS Index 1.09 Gas Water & Multi 0.56 Consumer Services 0.09 Associated British Foods PLC 2672 57.00 Melrose Industries PLC 238.60 0.20
FTSE 350 Higher Yield (110) 3692.90 0.00 3389.20 3692.93 3708.42 3460.65 5.86 1.27 13.49 0.28 7419.69 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 FTSE 100 Index 1.06 Financials 0.50 Media 0.07 Astrazeneca PLC 7645 22.00 Mondi PLC 1737 10.00
FTSE 350 Lower Yield (240) 4490.26 0.08 4120.98 4486.45 4530.39 3804.42 2.29 1.78 24.47 0.73 5216.77 Software & Comp Serv 1.02 Utilities 0.49 Industrial Transport -0.05 Auto Trader Group PLC 570.00 -7.00 Morrison (Wm) Supermarkets PLC 195.50 3.05
FTSE SmallCap (274) 5975.53 0.50 5484.10 5945.91 5966.52 5295.95 3.49 0.80 35.66 3.52 9268.59 FTSE All{HY-}Share Index 0.93 FTSE 250 Index 0.48 Food & Drug Retailer -0.06
FTSE SmallCap ex Inv Co (155) 4928.94 0.58 4523.59 4900.36 4910.69 4408.02 3.97 0.85 29.62 1.64 8043.66 FX: EFFECTIVE INDICES Mining 0.92 Financial Services 0.46 General Retailers -0.07
Aveva Group PLC 4724 48.00 National Grid PLC 942.60 -3.70
Aviva PLC 417.40 3.40 Next PLC 6902 -42.00
FTSE All-Share (624) 4209.34 0.06 3863.17 4206.93 4235.65 3758.89 4.08 1.39 17.63 0.57 7863.07
Jan 06 Jan 03 Mnth Ago Jan 07 Jan 06 Mnth Ago Technology 0.85 Industrials 0.43 Chemicals -0.11 Bae Systems PLC 590.20 1.60 Nmc Health PLC 1494.5 -177.00
FTSE All-Share ex Inv Co (443) 4125.94 0.03 3786.62 4124.52 4152.17 3691.88 4.17 1.39 17.29 0.43 3997.83 Leisure Goods 0.83 Industrial Eng 0.43 Beverages -0.21 Barclays PLC 183.14 2.16 Ocado Group PLC 1325.5 54.00
FTSE All-Share ex Multinationals (550) 1279.94 0.30 973.59 1276.10 1286.98 1096.75 3.57 1.20 23.41 0.33 2506.66 Australia - - - Sweden - - - Pharmace & Biotech 0.79 Life Insurance 0.39 Real Est Invest & Tr -0.29 Barratt Developments PLC 762.20 14.40 Pearson PLC 642.80 8.00
FTSE Fledgling (99) 9829.21 0.11 9020.86 9818.27 9832.64 10063.10 3.31 -0.34 -87.50 7.71 19727.93 Canada - - - Switzerland - - - Health Care 0.77 Real Est Invest & Se 0.39 Forestry & Paper -0.31 Berkeley Group Holdings (The) PLC 4844 -15.00 Persimmon PLC 2727 38.00
FTSE Fledgling ex Inv Co (44) 11771.03 0.37 10802.99 11727.24 11741.98 14607.86 5.18 -1.44 -13.39 9.78 23255.56 Denmark - - - UK 80.56 80.12 81.13 Banks 0.73 Construct & Material 0.36 Oil Equipment & Serv -0.86 Bhp Group PLC 1784.8 9.60 Phoenix Group Holdings PLC 749.60 3.50
FTSE All-Small (373) 4139.02 0.48 3798.62 4119.36 4133.19 3695.92 3.48 0.74 38.59 2.48 8236.19 Japan - - - USA - - - Basic Materials 0.73 Nonlife Insurance 0.30 Industrial Metals & -0.99 BP PLC 498.80 -5.30 Polymetal International PLC 1207 -14.50
FTSE All-Small ex Inv Co (199) 3673.60 0.58 3371.49 3652.53 3660.14 3324.74 4.00 0.76 32.82 1.28 7594.31 New Zealand - - - Euro - - - Electronic & Elec Eq 0.29 Tech Hardware & Eq -1.61 British American Tobacco PLC 3406 56.00 Prudential PLC 1442 12.50
FTSE AIM All-Share (750) 957.93 -0.29 879.15 960.68 964.07 891.96 1.56 1.34 48.15 0.05 1091.12 Norway - - -
British Land Company PLC 618.60 3.60 Reckitt Benckiser Group PLC 6138 -18.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 192.08 -1.16 Relx PLC 1893 -5.50
Oil & Gas (12) 8655.20 -0.78 7943.39 8723.50 8639.68 9048.54 6.10 1.40 11.71 0.00 9208.34 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 2052 -16.00 Rentokil Initial PLC 442.40 -10.10
Oil & Gas Producers (8) 8390.77 -0.79 7700.71 8457.82 8378.47 8731.09 6.10 1.41 11.65 0.00 9249.54 Burberry Group PLC 2164 -24.00 Rightmove PLC 634.80 -5.40
Oil Equipment Services & Distribution (4) 8800.70 -0.14 8076.93 8812.85 8596.35 12068.05 6.20 0.97 16.58 0.00 7564.81 FTSE GLOBAL EQUITY INDEX SERIES Carnival PLC 3466 -15.00 Rio Tinto PLC 4440 10.00
Basic Materials (25) 6317.61 0.39 5798.05 6293.20 6394.27 5893.42 5.33 2.45 7.67 0.00 7259.74 Centrica PLC 87.66 -1.92 Rolls-Royce Holdings PLC 668.20 -8.80
Chemicals (8) 14083.23 0.15 12925.03 14061.59 14175.30 14541.53 2.40 2.20 18.91 0.00 13296.49 Jan 3 No of US $ Day Mth YTD Total
YTD Gr Div Jan 3 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 2620 -8.00 Royal Bank Of Scotland Group PLC 240.60 0.60
Forestry & Paper (1) 21337.31 0.58 19582.53 21214.47 21705.82 20852.09 4.15 2.44 9.88 0.00 25200.97 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 1861 2.00 Royal Dutch Shell PLC 2299 -14.50
Industrial Metals & Mining (2) 3977.89 1.34 3650.75 3925.32 4029.95 4827.89 17.69 1.48 3.83 0.00 4682.60 FTSE Global All Cap 8874 638.10 -0.5 4.8 0.2 963.27
0.3 2.3 Oil & Gas Producers 102 356.90 0.2 0.2 1.1 647.78 1.1 4.4 Crh PLC 3031 8.00 Royal Dutch Shell PLC 2290.5 -18.50
Mining (14) 18119.99 0.39 16629.80 18050.09 18345.73 16583.11 5.51 2.51 7.22 0.00 10969.25 FTSE Global Large Cap 1795 569.35 -0.5 5.1 0.3 884.39
0.4 2.4 Oil Equipment & Services 38 268.22 0.4 0.4 0.1 429.63 0.1 4.6 Croda International PLC 5090 -5.00 Rsa Insurance Group PLC 564.80 3.80
FTSE Global Mid Cap 2136 828.91 -0.5 4.2 0.0 1179.58
0.0 2.2 Basic Materials 351 509.80 -0.8 -0.8 -0.8 839.87 -0.8 3.3 Dcc PLC 6430 26.00 Sage Group PLC 735.20 -1.00
Industrials (105) 5984.65 -0.01 5492.47 5985.29 6019.58 4864.03 2.39 1.11 37.68 2.16 6557.94
Construction & Materials (15) 7348.75 0.06 6744.39 7344.45 7413.32 5473.34 2.58 0.68 57.08 0.00 8303.88 FTSE Global Small Cap 4943 865.04 -0.3 4.2 0.0 1185.72
0.0 2.0 Chemicals 161 740.17 -1.0 -1.0 -1.3 1211.35 -1.3 2.7 Diageo PLC 3184.5 1.00 Sainsbury (J) PLC 231.00 4.40
Aerospace & Defense (10) 5308.04 -0.08 4871.51 5312.45 5273.23 4679.60 2.35 -0.18 -242.23 0.00 6016.82 FTSE All-World 3931 374.26 -0.5 4.9 0.3 597.66
0.3 2.4 Forestry & Paper 20 276.47 -1.1 -1.1 -0.6 509.49 -0.6 3.6 Easyjet PLC 1370 17.00 Schroders PLC 3266 7.00
General Industrials (6) 5173.05 0.70 4747.62 5137.33 5194.38 4284.90 3.16 0.89 35.56 0.00 6371.44 FTSE World 2582 665.56 -0.5 4.7 0.2 1426.84
0.2 2.4 Industrial Metals & Mining 91 378.06 -0.9 -0.9 0.0 626.71 0.0 4.2 Evraz PLC 393.10 6.10 Scottish Mortgage Investment Trust PLC 587.00 6.00
Electronic & Electrical Equipment (10)10166.37 -0.15 9330.29 10181.58 10261.28 7600.66 1.43 2.04 34.35 0.00 9678.55 FTSE Global All Cap ex UNITED KINGDOM In 8566 667.10 -0.5 4.7 0.3 989.34
0.3 2.2 Mining 79 727.37 -0.3 -0.3 -0.2 1219.40 -0.2 3.8 Experian PLC 2530 -6.00 Segro PLC 883.40 -7.60
Industrial Engineering (12) 14728.66 -0.11 13517.38 14745.45 14807.30 12057.25 2.32 1.52 28.39 0.00 18997.33 FTSE Global All Cap ex USA 7071 520.61 -0.3 5.3 0.4 853.47
0.4 3.0 Industrials 751 452.11 -0.4 -0.4 0.7 684.15 0.7 1.9 Ferguson PLC 6948 42.00 Severn Trent PLC 2474 -24.00
Industrial Transportation (6) 3888.62 0.99 3568.82 3850.67 3931.73 3619.03 6.22 0.86 18.69 0.00 3933.86 FTSE Global All Cap ex JAPAN 7525 656.96 -0.6 5.1 0.2 1001.36
0.2 2.3 Construction & Materials 147 553.69 -0.7 -0.7 -0.1 877.58 -0.1 2.3 Flutter Entertainment PLC 9454 88.00 Smith & Nephew PLC 1832.5 20.50
Support Services (46) 9052.06 -0.13 8307.62 9064.13 9136.98 7310.08 2.16 1.71 27.06 7.00 9952.40 FTSE Global All Cap ex Eurozone 8215 667.22 -0.5 4.8 0.2 986.68
0.3 2.3 Aerospace & Defense 37 921.17 1.0 1.0 2.9 1376.01 2.9 1.8 Glaxosmithkline PLC 1762.4 -8.00 Smith (Ds) PLC 383.10 1.40
FTSE Developed 2167 606.61 -0.5 4.5 0.2 923.38
0.2 2.3 General Industrials 64 230.30 -0.7 -0.7 1.0 379.50 1.0 2.2 Glencore PLC 237.00 0.70 Smiths Group PLC 1720 21.00
Consumer Goods (43) 20394.20 0.48 18716.99 20296.77 20371.91 17493.09 4.09 1.59 15.35 1.01 16681.65
FTSE Developed All Cap 5678 634.71 -0.5 4.5 0.1 953.01
0.2 2.3 Electronic & Electrical Equipment 133 511.14 -0.5 -0.5 0.4 702.79 0.4 1.7 Halma PLC 2093 2.00 Smurfit Kappa Group PLC 2894 24.00
Automobiles & Parts (2) 5217.91 -4.67 4788.79 5473.56 5651.82 6950.80 2.09 0.07 709.63 0.00 5334.48
FTSE Developed Large Cap 896 565.13 -0.6 4.7 0.2 874.98
0.2 2.4 Industrial Engineering 152 832.89 -0.7 -0.7 0.4 1251.81 0.4 2.4 Hargreaves Lansdown PLC 1872 - Spirax-Sarco Engineering PLC 8950 -10.00
Beverages (6) 25299.87 -0.02 23219.21 25305.15 25337.76 21895.60 2.20 1.76 25.71 0.00 18960.47
FTSE Developed Europe Large Cap 233 384.83 -0.5 5.8 0.2 700.06
0.2 3.5 Industrial Transportation 127 757.96 -0.6 -0.6 0.1 1153.70 0.1 2.2 Hikma Pharmaceuticals PLC 1882.5 -29.50 Sse PLC 1423.5 -18.50
Food Producers (11) 8137.68 0.36 7468.44 8108.41 8090.78 6864.97 2.27 2.10 20.96 7.75 7462.02
FTSE Developed Europe Mid Cap 349 630.06 -1.1 6.0 -0.4 1010.39
-0.3 2.9 Support Services 91 506.62 -0.4 -0.4 0.4 726.56 0.4 1.4 HSBC Holdings PLC 583.40 -1.80 St. James's Place PLC 1151 4.00
Household Goods & Home Construction (14)15158.92 0.58 13912.25 15070.86 15163.56 12723.37 3.98 1.88 13.33 0.00 11945.70
FTSE Dev Europe Small Cap 726 897.28 -1.0 7.2 -0.1 1387.22
-0.1 2.7 Consumer Goods 542 509.46 -0.2 -0.2 -0.2 804.00 -0.2 2.6 Imperial Brands PLC 1947.2 36.20 Standard Chartered PLC 701.60 -5.40
Leisure Goods (2) 16986.90 0.41 15589.90 16918.35 16768.87 9748.70 2.85 1.33 26.40 0.00 17507.28
FTSE North America Large Cap 260 698.64 -0.7 4.8 0.2 1001.32
0.3 1.9 Automobiles & Parts 132 380.97 -0.7 -0.7 0.0 587.33 0.0 3.2 Informa PLC 853.40 1.60 Standard Life Aberdeen PLC 314.40 -10.90
Personal Goods (6) 32637.52 -0.86 29953.42 32921.69 33219.42 30592.85 3.09 2.60 12.44 0.00 23758.92
FTSE North America Mid Cap 412 945.03 -0.4 3.7 -0.1 1251.27
-0.1 1.7 Beverages 65 704.64 -0.3 -0.3 -0.5 1121.91 -0.5 2.3 Intercontinental Hotels Group PLC 5074 -14.00 Taylor Wimpey PLC 194.40 1.00
Tobacco (2) 36266.02 1.71 33283.50 35654.73 35712.11 29961.91 6.79 1.10 13.37 0.00 27465.66
FTSE North America Small Cap 1329 953.62 -0.2 3.3 -0.1 1221.20
-0.1 1.6 Food Producers 132 682.81 0.5 0.5 0.1 1098.13 0.1 2.2 International Consolidated Airlines Group S.A. 617.00 7.00 Tesco PLC 254.50 0.50
Health Care (18) 12835.05 0.00 11779.50 12835.33 12971.72 10493.88 3.33 1.02 29.37 0.00 10806.35
FTSE North America 672 459.64 -0.7 4.6 0.2 673.37
0.2 1.9 Household Goods & Home Construction 59 501.37 -0.6 -0.6 -1.0 786.50 -1.0 2.5 Intertek Group PLC 5708 -102.00 Tui AG 972.00 3.80
Health Care Equipment & Services (9) 8365.72 0.33 7677.72 8338.51 8504.35 6903.98 1.67 2.27 26.33 0.00 7562.14
FTSE Developed ex North America 1495 272.48 -0.3 4.5 0.2 481.21
0.2 3.1 Leisure Goods 42 242.20 -0.1 -0.1 0.0 329.89 0.0 1.2 Itv PLC 150.00 1.45 Unilever PLC 4287.5 -37.00
Pharmaceuticals & Biotechnology (9) 17661.26 -0.04 16208.80 17668.99 17836.01 14421.12 3.54 0.95 29.81 0.00 13336.95
FTSE Japan Large Cap 184 399.08 0.2 1.2 2.4 Personal Goods
0.6 547.16
0.6 99 900.31 -0.3 -0.3 -0.1 1322.42 -0.1 1.8 Jd Sports Fashion PLC 816.80 0.40 United Utilities Group PLC 934.00 -3.60
Consumer Services (85) 5655.59 0.43 5190.48 5631.55 5686.89 4887.86 2.80 1.68 21.26 0.74 5699.19 FTSE Japan Mid Cap 321 632.18 0.2 1.1 0.6 823.90
0.6 2.1 Tobacco 13 1001.84 0.7 0.7 0.5 2370.47 0.5 6.0
Food & Drug Retailers (6) 4379.44 1.13 4019.27 4330.67 4358.60 3653.04 2.48 1.41 28.50 0.00 5404.03 Johnson Matthey PLC 2935 -1.00 Vodafone Group PLC 146.66 -0.42
FTSE Global wi JAPAN Small Cap 844 699.99 0.2 2.4 0.6 944.20
0.6 2.0 Health Care 280 608.16 -0.6 -0.6 -0.4 919.48 -0.4 1.9 Just Eat PLC 868.80 13.60 Whitbread PLC 4795 -7.00
General Retailers (25) 2418.64 0.94 2219.73 2396.08 2406.44 1974.51 2.78 1.66 21.66 0.24 3010.73
FTSE Japan 505 168.15 0.2 1.2 2.3 Health Care Equipment & Services
0.6 258.18
0.6 95 1167.30 -0.6 -0.6 -0.4 1395.20 -0.4 0.9 Kingfisher PLC 228.00 8.40 Wpp PLC 1071 7.00
Media (18) 9236.90 0.01 8477.25 9235.56 9292.42 7967.82 2.89 1.87 18.50 3.34 6114.86
FTSE Asia Pacific Large Cap ex Japan 935 731.89 -0.3 6.5 0.7 1236.96
0.7 2.7 Pharmaceuticals & Biotechnology 185 408.66 -0.6 -0.6 -0.4 653.15 -0.4 2.4 Land Securities Group PLC 993.20 10.20
Travel & Leisure (36) 10007.13 0.30 9184.15 9977.27 10140.70 8956.66 2.84 1.62 21.68 0.00 10185.12
FTSE Asia Pacific Mid Cap ex Japan 820 869.66 -0.1 5.4 0.4 1411.14
0.4 3.0 Consumer Services 453 561.02 -0.7 -0.7 0.6 778.06 0.6 1.4
Telecommunications (6) 2271.10 -0.33 2084.33 2278.54 2289.22 2435.47 5.83 0.02 751.80 0.00 3001.10 FTSE Asia Pacific Small Cap ex Japan 1743 544.70 -0.4 5.3 0.3 864.19
0.3 3.0 Food & Drug Retailers 65 293.19 -0.5 -0.5 -0.6 433.58 -0.5 2.5
Fixed Line Telecommunications (3) 2362.77 -0.57 2168.46 2376.42 2380.57 2744.54 7.55 1.45 9.11 0.00 2582.49
Mobile Telecommunications (3) 3330.68 -0.21 3056.77 3337.78 3357.92 3447.73 5.05 -0.95 -20.76 0.00 3941.85
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1755 572.02
3196 799.03
-0.2
-0.3
6.4
8.0
0.7 1027.02
0.7 2.8 General Retailers
1.1 1281.59
1.1 2.9 Media
150 913.21
90 385.98
-0.7
-0.7
-0.7
-0.7
0.9 1221.32
0.5 538.89
0.9
0.5
1.0
1.4
UK STOCK MARKET TRADING DATA
Utilities (8) 7651.52 -0.79 7022.26 7712.59 7759.20 6547.79 5.69 0.39 45.37 0.00 10179.00 FTSE Emerging Large Cap 899 766.69 -0.3 8.2 1.2 1238.03
1.2 2.8 Travel & Leisure 148 520.60 -0.7 -0.7 0.5 735.66 0.5 1.9 Jan 07 Jan 06 Jan 03 Jan 02 Dec 31 Yr Ago
Electricity (3) 8273.61 -1.30 7593.19 8382.56 8408.55 6631.44 6.74 -0.30 -48.70 0.00 14332.95 FTSE Emerging Mid Cap 865 981.65 -0.1 7.9 0.8 1570.05
0.9 3.4 Telecommunication 93 159.98 -0.2 -0.2 -0.3 333.83 -0.3 4.3 - - - - - -
Gas Water & Multiutilities (5) 7077.98 -0.64 6495.89 7123.48 7172.84 6173.80 5.38 0.65 28.74 0.00 9342.07 FTSE Emerging Small Cap 1432 762.13 -0.4 6.5 0.8 1171.32
0.8 3.1 Fixed Line Telecommuniations 38 134.65 -0.2 -0.2 -0.6 313.38 -0.6 4.8 Order Book Turnover (m) 80.03 223.19 223.19 1292.39 14.21 13.45
Financials (306) 5119.80 0.13 4698.75 5112.90 5171.37 4600.97 4.08 1.33 18.48 1.35 5241.87 FTSE Emerging Europe 75 443.81 0.2 8.9 0.8 797.57
0.8 6.4 Mobile Telecommunications 55 167.04 -0.3 -0.3 0.1 307.51 0.1 3.5 Order Book Bargains 684663.00 626539.00 626539.00 683238.00 210356.00 210336.00
Banks (10) 3718.77 -0.10 3412.94 3722.32 3762.98 3718.17 5.47 1.30 14.06 0.00 3097.02 FTSE Latin America All Cap 237 1001.65 -0.5 11.7 1.7 1672.43
1.7 3.2 Utilities 187 315.61 -0.2 -0.2 -0.7 669.71 -0.7 3.4 Order Book Shares Traded (m) 1255.00 1049.00 1049.00 1088.00 514.00 487.00
Nonlife Insurance (8) 3678.57 0.23 3376.04 3670.03 3718.62 3506.02 3.88 1.53 16.82 0.00 7068.54 FTSE Middle East and Africa All Cap 332 688.43 -0.5 6.9 -0.2 1155.07
-0.2 3.6 Electricity 130 353.63 -0.1 -0.1 -0.7 739.58 -0.7 3.2 Total Equity Turnover (£m) 4875.26 9732.59 9732.59 6340.49 3106.66 3064.47
Life Insurance/Assurance (7) 8215.65 0.75 7539.99 8154.38 8245.74 7036.24 4.86 1.78 11.54 0.00 8942.40 FTSE Global wi UNITED KINGDOM All Cap In 308 356.24 -0.8 7.3 -0.4 660.48
-0.4 4.2 Gas Water & Multiutilities 57 318.80 -0.3 -0.3 -0.7 698.59 -0.7 3.7 Total Mkt Bargains 830963.00 778486.00 778486.00 807061.00 280204.00 279869.00
Real Estate Investment & Services (19) 2951.05 0.61 2708.35 2933.24 2948.34 2416.81 1.76 1.60 35.53 0.00 8368.58 FTSE Global wi USA All Cap 1803 790.51 -0.6 4.4 1.8 Financials
0.1 1095.09
0.2 849 264.94 -0.6 -0.6 0.2 467.50 0.2 3.2 Total Shares Traded (m) 4001.00 5004.00 5004.00 4389.00 2061.00 2022.00
Real Estate Investment Trusts (41) 2982.02 0.30 2736.78 2973.09 3006.73 2478.23 3.93 -0.03 -976.21 3.72 4133.38 FTSE Europe All Cap 1457 455.36 -0.6 6.0 0.1 797.53
0.1 3.4 Banks 277 213.53 -0.9 -0.9 -0.1 411.51 0.0 4.1 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (40) 10731.30 -0.41 9848.76 10775.73 10948.59 8271.76 2.81 1.59 22.40 1.03 13395.15 FTSE Eurozone All Cap 659 435.91 -0.8 5.1 0.2 762.77
0.2 3.1 Nonlife Insurance 71 309.27 -0.5 -0.5 0.2 474.21 0.2 2.1 (c) Market closed.
Equity Investment Instruments (181) 11263.46 0.46 10337.15 11211.88 11312.84 9696.45 2.45 1.52 26.88 7.39 6574.47 FTSE RAFI All World 3000 3271 7231.82 -0.6 4.7 0.1 10314.81
0.1 3.2 Life Insurance 60 243.30 -0.6 -0.6 0.8 420.22 0.8 3.2
Non Financials (318) 5013.14 0.03 4600.86 5011.69 5037.42 4466.53 4.08 1.41 17.34 0.44 8203.81 FTSE RAFI US 1000 1053 12863.58 -0.7 4.2 -0.2 17936.35
-0.2 2.4 Financial Services 209 372.06 -0.7 -0.7 0.5 537.22 0.5 1.7
Technology (16) 2267.44 0.32 2080.96 2260.23 2282.63 1785.57 2.74 0.83 43.67 0.00 3113.78 FTSE EDHEC-Risk Efficient All-World 3931 432.75 -0.4 4.2 0.0 638.26
0.0 2.4 Technology 274 363.04 -0.8 -0.8 1.0 460.98 1.0 1.3 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2496.58 0.38 2291.26 2487.20 2503.18 1988.06 2.82 0.78 45.60 0.00 3627.43 FTSE EDHEC-Risk Efficient Developed Europe 582 337.33 -0.8 5.5 -0.2 551.26
-0.2 3.0 Software & Computer Services 144 614.80 -0.7 -0.7 1.1 732.03 1.1 0.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (2) 3985.22 -0.64 3657.47 4010.88 4280.81 2572.83 1.47 2.65 25.59 0.00 4869.57 Oil & Gas 151 367.07 0.2 7.6 0.9 652.12
0.9 4.4 Technology Hardware & Equipment 130 280.12 -1.0 -1.0 0.7 377.38 0.8 1.9 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 11 124.93 -1.4 -1.4 -1.3 174.98 -1.3 1.2 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment & Services 152 371.20 -0.2 -0.2 0.5 662.94 0.5 2.9 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7588.18 7581.79 7586.07 7589.04 7585.47 7590.19 7574.17 7573.69 7574.24 7603.94 7562.19 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 250 21834.46 21850.23 21860.11 21878.40 21824.84 21833.33 21800.84 21794.78 21810.82 21899.19 21781.95 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5953.79 5959.16 5960.48 5959.64 5959.31 5950.17 5956.15 5956.75 5961.92 5975.53 5944.37
FTSE All-Share 4215.21 4213.02 4215.27 4217.15 4213.83 4215.97 4207.97 4207.58 4208.47 4222.65 4202.34 WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE 100 Day's high:08:13:00 Day's Low14:48:15 FTSE 100 2010/11 High: 7622.40(03/01/2020) Low: 7573.85(07/01/2020) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE All-Share Day's high:08:13:00 Day's Low14:48:00 FTSE 100 2010/11 High: 4235.65(03/01/2020) Low: 4206.93(06/01/2020) Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Accrol Group Holdings Int 65.067 57.584 3.049L 8.984L 130.000L 410.000L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Amerisur Resources 3rd 84.309 96.259 9.925 15.504 0.003 0.009 0.00000 0.00000 - 0.000 0.000 12/17 10.00 EVRA EverArc Holdings Ltd 12.50 0.25 17.00 10.00 425.4
There are currently no rights offers by any companies listed on the LSE. C4X Discovery Holdings Pre 0.000 7.064 13.622L 2.526L 18.820L 2.340L 0.00000 0.00000 - 0.000 0.000 12/12 57.00 AIM MJH MJ Hudson Group PLC 59.00 -0.21 60.50 57.00 10107.0
Safestore Holdings Pre 151.800 143.900 147.300 185.300 62.800 84.400 12.00000 11.15000 Apr 9 17.500 16.250 12/10 100.00 ORIT Octopus Renewables Infrastructure Trust PLC 108.60 0.10 109.00 103.00 38010.0
12/05 105.00 AIM PEBB Pebble Group PLC 135.00 -2.00 140.00 118.50 22605.9
11/28 100.00 AIM LBE Longboat Energy PLC 95.00 -0.90 105.80 93.00 950.0

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 www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 8 January 2020 ★ FINANCIAL TIMES 17
18 ★ FINANCIAL TIMES Wednesday 8 January 2020

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 39.18 0.08 39.70 28.92 5.54 16.50 286209.9 Lockheed 412.71 -0.41 417.99 263.86 2.27 18.42 116412.28
ANZ 24.95 0.32 29.30 24.09 6.70 11.18 48603.37 Nokia 3.58 0.13 5.74 3.02 2.91 -49.08 22494.91 AstellasPh 1848.5 29.50 1917 1375 2.26 13.30 32144.07 AtlasCpcoB 330.80 1.50 338.90 188.96 0.97 22.58 13662.91 AutomData 168.85 -1.34 174.50 129.06 1.99 29.21 73061.07 Lowes 119.35 -1.00 121.46 90.23 1.75 30.89 91478.84
BHPBilltn 39.55 0.15 42.33 32.25 4.48 15.83 80023.91 SampoA 39.93 0.53 43.38 34.45 7.44 18.79 24652.98 Bridgestne 4072 63.00 4734 3888 4.20 10.08 28548.85 Ericsson 83.46 0.92 96.74 74.02 1.23 -30.67 27140.93 Avago Tech 314.41 0.69 331.20 230.76 3.31 40.75 125069.87 Lyondell 91.09 -0.23 98.91 68.61 4.79 8.93 30368.72
CmwBkAu 81.20 1.43 83.99 69.15 5.59 16.88 98730.33 France (€) Canon 3048 52.50 3338 2687.5 5.62 18.67 37426.91 H&M 192.18 2.00 208.80 126.80 5.27 23.98 29711.88 BakerHu 22.08 0.09 31.26 20.09 3.40 47.09 11412.93 Marathon Ptl 58.22 0.00 69.65 43.96 3.75 11.79 37804.81
CSL 283.42 6.62 287.90 184.00 0.92 44.65 88353.93 Airbus Grpe 132.00 -1.46 137.32 83.56 1.30 26.12 115178.94 CntJpRwy 21925 420.00 26255 20365 0.73 8.90 41581.2 Investor 517.80 0.60 525.60 372.40 2.57 17.30 24963.45 BankAm 34.59 -0.26 35.72 25.09 1.94 11.99 311140.77 Marsh&M 112.05 0.14 113.94 79.42 1.62 35.80 56548.08
NatAusBk 24.90 0.35 30.00 23.51 7.64 13.65 50407.47 AirLiquide 124.90 -0.55 127.95 92.77 2.03 26.23 65830.77 Denso 4906 63.00 5225 4081 3.05 14.56 35588.83 Nordea Bk 76.75 -0.30 87.27 57.20 9.86 22.58 32900.11 Baxter 85.64 0.35 89.93 65.27 0.95 27.78 43724 MasterCard 302.52 1.29 303.53 188.50 0.35 42.16 301748.33
Telstra 3.71 0.09 4.01 2.85 3.55 19.46 30306.74 AXA 25.29 0.16 25.59 19.16 5.58 38.24 68119.91 EastJpRwy 9774 98.00 10940 9636 1.72 11.37 34007.65 SEB 90.38 0.64 99.38 78.88 6.79 10.14 20758.95 BB & T 54.24 0.75 55.66 40.68 3.26 12.85 41564.3 McDonald's 201.16 -1.17 221.93 173.41 2.46 24.79 151492.25
Wesfarmers 43.07 0.87 43.30 30.82 5.38 23.86 33542.02 BNP Parib 52.66 -0.02 54.00 38.88 5.97 8.53 73326.72 Fanuc 20240 240.00 22060 16830 1.85 32.45 38018.82 SvnskaHn 102.95 0.65 107.40 82.02 5.47 11.98 21185.35 BectonDick 272.83 -0.55 275.48 216.34 1.20 65.04 73789.57 McKesson 137.72 -0.44 154.79 110.52 1.22 -39.80 24815.48
Westpc 24.62 0.28 30.05 23.86 7.98 12.43 61074.57 ChristianDior 461.20 - 498.20 334.20 1.37 29.45 92752.57 FastRetail 63250 200.00 70230 47040 0.84 36.07 61767.25 Swedbank 139.95 1.00 214.80 120.75 10.38 7.72 16768.37 BerkshHat 338800-1410.00 342261 291650 - 19.28 239787.39 Medtronic♦ 114.97 0.08 115.94 81.66 1.83 32.87 154103.2
Woolworths 36.94 0.63 40.04 28.21 2.71 30.87 31999.92 Cred Agr 12.95 -0.03 13.40 9.40 5.55 9.97 41604.68 Fuji Hvy Ind 2683.5 17.50 3184 2334.5 5.74 11.11 19002.79 Telia Co 40.48 -0.02 44.90 38.91 5.89 21.16 18036.2 Biogen 290.75 -0.07 344.00 215.78 - 9.72 52463.48 Merck 89.72 -1.93 92.64 72.05 2.61 23.54 228412.97
Belgium (€) Danone 74.06 -0.70 82.38 60.79 2.76 21.04 56614.24 Hitachi 4667 46.00 4693 3019 2.06 18.76 41560.46 Volvo 158.65 1.45 160.95 114.15 3.22 9.93 27725.15 BkNYMeln 51.02 0.28 54.27 40.52 2.40 12.45 47050.59 Metlife 51.14 0.19 51.69 41.41 3.58 6.45 47029.94
AnBshInBv 74.06 -0.21 92.71 60.05 2.62 16.17 139715.35 EDF 9.89 -0.02 15.48 8.93 3.30 15.91 34205.35 HondaMtr 3089 82.00 3290 2412 3.88 9.68 51514.47 BlackRock 506.42 2.42 510.00 389.42 2.74 18.35 78175.64 Microsoft 158.66 -0.37 160.73 100.98 1.23 28.121210355.78
Switzerland (SFr)
KBC Grp 66.78 -0.30 68.70 48.65 5.46 11.37 30963.04 Engie SA 14.89 0.19 15.24 12.31 5.31 42.82 40400.43 JapanTob 2394 16.00 2899 2179 6.79 10.79 44080.28 Boeing 340.30 6.56 446.01 319.55 2.46 48.72 191518.93 Mnstr Bvrg 63.82 0.44 66.38 49.17 - 30.12 34314.85
ABB 23.64 0.01 23.79 17.25 3.43 50.77 52739.64
EssilorLuxottica 137.05 0.95 142.70 95.50 1.57 40.39 66808.5 KDDI 3271 28.00 3312 2353.5 3.60 11.59 70930.1 BrisMySq♦ 64.07 1.09 64.75 42.48 2.73 17.39 104385.02 MondelezInt♦ 53.71 -0.44 56.72 40.58 2.11 18.61 77332.97
Brazil (R$) CredSuisse 13.50 0.34 14.14 10.70 2.02 11.94 35505.64
Hermes Intl 678.20 8.40 689.20 468.00 0.71 46.50 79769.57 Keyence 39320 350.00 40520 26380 0.27 42.23 88040.2 CapOne 99.96 -1.12 105.70 76.82 1.70 8.33 46553.47 Monsanto 127.95 0.02 127.97 114.19 1.64 23.62 56462.29
Ambev 19.05 0.03 20.77 16.09 1.75 26.14 73365.66 Nestle 105.20 -1.06 113.20 81.02 2.39 32.81 322143.55
LOreal 259.60 -3.40 267.60 194.55 1.56 35.14 161412.12 MitsbCp 2918.5 34.50 3290 2520 4.66 8.22 42723.62 CardinalHlth♦ 49.49 -0.28 56.88 41.03 4.12 -3.31 14475.25 MorganStly 50.85 -0.17 52.06 38.76 2.62 10.18 82305.7
Bradesco 34.16 -0.51 35.89 27.76 1.00 16.00 33713.18 Novartis 92.34 0.25 94.40 73.39 3.19 29.45 240137.66
LVMH 416.00 0.85 421.55 245.50 1.52 30.07 234259.28 MitsubEst 2133 44.50 2153 1747.5 1.61 22.84 27318.86 Carnival 48.40 0.02 59.24 39.92 4.45 10.14 25506.83 MylanNV 20.94 0.07 32.23 16.63 - 218.54 10807.81
Cielo 8.13 -0.12 12.25 6.25 9.75 9.21 5406.57 Richemont 76.58 1.32 87.44 63.32 2.72 27.45 41132.64
Orange 13.20 0.01 15.38 13.08 5.59 17.64 39120.65 MitsubishiEle 1504 27.50 1622 1213 2.85 12.33 29731.1 Caterpillar 145.97 -2.37 150.55 111.75 2.63 12.98 80671.54 Netflix 331.20 -4.63 385.99 252.28 - 99.70 145010.91
ItauHldFin 31.45 -0.55 33.47 27.19 4.09 11.72 38170.11 Roche 316.15 0.40 318.45 247.00 2.83 22.47 228548.85
PernodRic 160.55 -0.65 179.50 136.00 0.89 27.80 47477.51 MitsuiFud 2743.5 66.00 2977 2263.5 1.79 15.12 24733.69 CBS 40.77 1.43 53.91 35.02 1.88 4.97 14347.97 NextEraE 241.50 -0.02 245.01 169.35 2.14 34.06 118040.6
Petrobras♦ 32.46 -0.57 33.70 26.22 1.50 14.63 59133.72 Swiss Re 108.30 -0.05 110.45 89.26 5.08 81.89 36484.98
Renault 42.81 1.46 64.20 40.20 8.74 4.78 14104.92 MitUFJFin 584.10 2.00 603.00 490.50 4.31 10.43 73497.89 Celgene 108.24 0.11 110.70 58.59 - 12.71 77035.98 Nike 101.96 0.13 102.74 74.30 0.93 35.31 127038.74
Vale 53.89 0.28 56.20 40.51 - 17.45 69707.72 Swisscom 518.60 1.00 523.40 441.10 4.40 17.33 27642.63
Safran 137.70 1.25 150.85 103.85 1.39 26.14 61452.06 Mizuho Fin 168.20 1.60 180.20 150.10 4.77 308.15 39320.79 CharlesSch 47.41 0.07 51.65 34.58 1.44 16.43 60793.27 NorfolkS 196.25 0.32 211.46 148.28 1.88 17.97 51171.53
Canada (C$) Syngent 453.40 0.90 471.20 402.50 - 39.22 43035.76
Sanofi 91.03 -0.32 92.00 71.74 3.55 30.20 127099.96 Murata Mfg 6748 77.00 16430 4304 2.97 78.50 41983.39 Charter Comms 497.56 0.11 500.01 279.33 - 84.66 106864.92 Northrop 375.29 -0.54 383.89 245.01 1.43 19.93 63248.66
BCE♦ 60.63 0.37 65.45 53.05 5.41 17.50 42095.02 UBS 12.62 0.33 13.81 9.86 5.63 11.72 50092.08
Sant Gbn 35.86 -0.15 39.57 28.35 3.91-170.13 21758.82 NipponTT 2784 37.00 2852.5 2227.5 7.30 5.85 99979.72 Chevron Corp 117.98 -2.62 127.34 109.92 4.23 15.90 223085.1 NXP 129.02 2.62 129.78 74.89 0.93 81.88 36064.58
BkMontrl 100.48 -0.04 106.51 88.24 4.06 11.55 49338.1 Zurich Fin 401.70 1.60 404.40 295.30 4.76 15.11 61838.29
Schneider 92.32 -0.38 94.58 57.64 2.68 21.40 59868.6 Nissan Mt 636.50 11.00 969.60 619.50 6.47 16.84 24732.88 Chubb♦ 154.48 -2.58 162.44 125.48 2.04 18.34 70010.69 Occid Pet♦ 44.64 -0.42 68.83 37.25 7.47 29.73 39873.23
BkNvaS♦ 72.01 -0.41 76.75 67.17 4.87 10.73 67269.22 Nomura 562.00 4.50 577.20 330.70 3.43 -5.80 18075.69 Taiwan (NT$) Cigna 207.71 0.79 207.73 141.95 0.02 17.37 77564.18 Oracle 54.19 0.15 60.50 46.47 1.70 17.18 173806.46
SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81
Brookfield 75.57 0.18 78.62 52.49 1.16 14.66 60833.99 Nppn Stl 1636.5 -2.00 2081 1413.5 3.27 7.98 14317.82 Chunghwa Telecom 109.50 -0.50 123.50 96.30 4.22 23.28 28263.33 Cisco♦ 47.25 -0.56 58.26 42.58 3.08 16.89 200425.7 Pepsico 134.83 -1.32 140.45 106.73 2.97 14.47 188011.72
SocGen 31.46 0.38 31.83 20.81 7.29 9.71 29911.5
CanadPcR♦ 340.52 4.68 343.31 239.65 0.91 19.68 35880.88 NTTDCMo 3069 38.00 3082 2257.5 4.01 15.35 94235.19 Formosa PetChem 100.00 -2.00 119.00 94.00 4.95 36.08 31695.63 Citigroup 78.85 -0.60 81.26 54.76 2.51 9.82 172144.84 Perrigo 49.20 -0.08 57.50 40.68 1.73 25.67 6696.59
Total 50.11 -0.33 52.27 42.65 5.53 14.61 145262.4
CanImp♦ 107.76 0.22 115.96 97.55 5.44 8.89 36884.69 Panasonic 1046 28.50 1109.5 787.70 3.07 8.40 23625.29 HonHaiPrc 89.10 -1.40 97.20 68.20 4.63 9.76 41098.36 CME Grp■ 205.93 0.54 224.91 161.05 1.53 33.99 73795.4 Pfizer 38.76 -0.12 44.56 33.97 3.90 12.73 214476.57
UnibailR 190.00 0.35 236.45 177.35 5.80 17.44 22215.04
CanNatRs 41.50 -0.47 42.57 30.01 3.68 11.63 37758.9 Seven & I 3969 89.00 5047 3573 2.64 15.01 32390.79 MediaTek 426.00 2.00 464.00 218.50 2.18 31.34 22532.69 Coca-Cola 54.39 -0.28 55.92 44.42 3.11 27.17 233033.49 Phillips66 107.01 -0.80 119.92 80.24 3.38 10.15 47550.7
Vinci 98.04 -0.68 102.50 72.04 2.87 17.13 66110.52
CanNatRy 117.93 0.03 127.96 100.34 1.84 18.23 64810.35 ShnEtsuCh 11995 145.00 12585 8414 1.87 14.94 46012.43 TaiwanSem 329.50 -2.50 345.00 210.00 2.42 26.03 284285.66 Cognizant 60.16 -0.59 74.85 56.73 1.42 15.31 32938.82 PhilMorris♦ 86.41 0.39 92.74 67.34 5.66 16.91 134435.35
Vivendi 25.85 -0.03 26.69 21.38 2.04 64.54 34116.53
Enbridge 51.57 -0.29 52.17 43.02 5.86 17.05 80182.68 Softbank 4646 77.00 6045 3710 0.76 9.89 89387.57 Thailand (THB) ColgtPlm 67.87 -0.62 76.41 59.31 2.67 23.61 58165.28 PNCFin 157.23 -1.28 161.79 117.17 2.71 13.22 70008.86
GtWesLif 33.44 0.10 34.42 27.52 5.10 12.02 23841.1 Germany (€)
Sony 7655 235.00 7703 4507 0.56 10.72 89690.96 PTT Explor 47.25 0.25 50.25 40.75 4.45 13.71 44714.8 Comcast♦ 44.98 0.31 47.27 34.67 1.94 15.65 204177.77 PPG Inds 128.61 -0.48 134.36 99.04 1.61 23.87 30411.53
ImpOil 34.27 -0.59 40.59 31.51 2.50 9.14 19646.38 Allianz 218.20 0.50 225.90 174.60 4.30 11.43 101417.32
SumitomoF 3991 12.00 4167 3380 4.96 8.86 50454.13 United Arab Emirates (Dhs) ConocPhil 65.97 -0.51 71.01 50.13 1.97 8.46 72386.92 Praxair 164.50 -0.99 169.75 140.00 2.21 14.16 47306.22
Manulife 26.85 0.30 26.88 19.65 3.90 10.51 40198.88 BASF 66.30 0.03 74.61 55.64 5.03 23.48 67845.95
Takeda Ph 4289 17.00 4822 3401 4.49-148.78 62244.47 Emirtestele 16.42 0.12 17.80 15.20 5.19 14.83 38876.93 Corning 29.66 -0.03 35.34 26.75 2.80 20.79 22807.95 Priceline 1905.64 -1.38 2067.99 1612.41 - 17.15 92937.2
Nutrien 61.88 0.58 73.64 60.22 3.90 19.93 27234.44 Bayer 72.13 0.39 74.36 52.02 4.04 -47.42 78950.75
TokioMarine 6139 124.00 6294 5158 3.22 12.12 40127.88 United Kingdom (p) Costco 289.57 -2.24 307.34 203.54 0.91 32.54 127919.76 ProctGmbl 123.03 0.28 126.60 89.08 2.53 73.60 306801.23
RylBkC 103.50 0.31 109.68 93.13 3.95 11.78 113755.23 BMW 74.22 1.17 78.30 58.04 4.91 9.47 49780.05
Toyota 7715 150.00 7949 6274 3.05 10.80 231762.36 CrownCstl 140.00 -1.26 149.47 104.22 3.42 66.41 58207.59 Prudntl 92.93 -0.56 106.40 77.65 4.47 9.34 37356.86
Suncor En 43.82 -0.16 46.50 36.32 3.87 13.16 51927.52 Continental 115.12 2.44 157.40 103.62 4.30-103.27 25652.82 AscBrFd♦ 2672 57.00 2704.27 2078.81 1.70 24.05 27754.36
Mexico (Mex$) CSX 73.12 0.61 80.73 61.35 1.37 16.39 57204.45 PublStor 213.68 -0.78 266.76 195.13 3.99 23.72 37325.73
ThmReut 96.20 1.09 96.34 62.92 2.11 203.28 36941.98 Daimler 49.20 0.39 60.00 40.31 6.88 12.49 58638.13 AstraZen 7645 22.00 8227.88 109.51 3.01 58.69 127032.05
AmerMvl 15.14 -0.13 15.78 12.69 1.21 16.19 35974.94 CVS 73.08 -0.78 77.03 51.72 2.91 20.49 95070.55 Qualcomm 89.05 2.54 94.11 49.10 2.97 23.30 101685.05
TntoDom 73.50 0.13 77.96 67.33 4.08 11.00 102756.6 Deut Bank 7.43 0.25 8.32 5.78 1.54 -3.26 17118.15 Aviva 417.40 3.40 442.30 3.87 7.19 7.21 21978.39
FEMSA UBD 184.03 0.47 192.50 166.80 1.39 18.01 21060.74 Danaher♦ 156.06 1.45 156.10 100.30 0.46 43.37 112094.96 Raytheon♦ 225.68 -0.91 232.47 152.61 1.71 18.13 62847.17
TrnCan♦ 68.43 -0.61 70.64 51.23 4.50 15.24 49120.87 Deut Tlkm 14.61 0.03 16.26 13.95 4.99 23.76 77484.12 Barclays 183.14 2.16 192.99 131.04 3.82 17.03 41002.18
WalMrtMex 54.86 -0.54 59.87 47.66 1.74 24.48 50725.9 Deere♦ 173.83 -2.99 180.48 132.68 1.83 15.76 54455.16 Regen Pharm 369.80 -1.94 442.00 271.37 - 18.58 39918.72
ValeantPh 30.80 -1.06 36.02 14.01 - -12.48 8158.48 DeutsPost 33.92 0.30 35.00 23.94 3.53 15.80 46729.78 BP 498.80 -5.30 583.40 4.69 6.65 26.28 130435.58
Delphi 12.31 -0.08 26.82 10.86 1.47 5.33 1059.11 S&P Global 283.24 4.20 286.69 171.91 0.83 31.56 69223.86
E.ON 9.40 -0.07 10.26 8.08 4.77 33.42 27662.4 Netherlands (€) BrAmTob♦ 3406 56.00 3422.71 116.50 5.85 12.68 83318.91
China (HK$) Delta 57.64 -0.02 63.44 45.82 2.68 7.65 37278.26 Salesforce 175.50 2.05 175.84 137.87 - 190.20 155668.5
Fresenius Med 65.10 0.08 76.68 57.24 1.87 14.87 22073.75 Altice 5.86 0.07 5.96 1.67 - 5.07 6715.86 BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.38 -0.02 3.88 2.93 5.98 4.94 13360.63 Devon Energy 26.20 -0.21 35.39 19.72 1.38 9.84 10063.42 Schlmbrg♦ 39.87 -0.95 48.88 30.65 5.34 -6.21 55195.6
Fresenius SE 49.48 0.11 52.82 40.46 1.68 14.09 24856.64 ASML Hld 268.40 5.30 271.40 134.50 0.82 48.43 127287.69 BT♦ 192.08 -1.16 242.00 157.67 8.02 8.81 25004.88
Bk China 3.28 -0.01 3.84 2.91 6.56 4.64 35271.04 DiscFinServ 81.70 -0.70 92.98 60.81 2.14 8.68 25610.36 Sempra Energy♦ 148.93 -0.08 154.47 109.28 2.71 16.61 41981.35
HenkelKgaA 83.15 0.10 90.30 75.55 2.29 15.80 24067.77 Heineken 97.48 -0.04 104.00 74.28 1.73 27.86 62557.78 Compass 1861 2.00 2150 20.62 2.03 25.22 40156.15
BkofComm 5.50 -0.02 7.06 4.98 6.34 4.79 24762.84 Disney♦ 146.24 0.59 153.41 107.32 1.28 21.91 263573.71 Shrwin-Will 562.46 -0.95 597.00 371.00 0.80 35.45 51920.26
Linde 185.30 1.70 192.85 134.80 1.78 17.56 110900.46 ING 10.92 0.06 12.14 8.20 6.49 9.07 47425.61 Diageo 3184.5 1.00 3633.5 2688.5 2.09 24.48 105183.95
BOE Tech 0.63 0.01 1.06 0.58 - 23.66 16.12 DominRes 82.31 -0.08 83.93 67.41 4.64 56.84 67748.82 SimonProp 144.59 -1.52 186.44 142.40 6.04 18.23 44369.03
MuenchRkv 264.50 1.80 268.00 185.45 3.64 13.24 42529.19 Unilever 50.51 -0.45 57.77 45.57 3.28 13.56 82202.34 GlaxoSmh 1762.4 -8.00 1850.4 1429.8 4.54 19.30 113717.79
Ch Coms Cons 6.38 -0.07 8.87 5.80 4.31 4.70 3632.5 DowDupont 30.52 -0.65 48.38 30.06 10.05 7.87 68559.76 SouthCpr 41.61 -0.01 43.38 29.39 4.09 20.46 32168.91
SAP 120.10 0.54 125.00 86.04 1.30 40.59 164384.55 Norway (Kr) Glencore 237.00 0.70 2334.5 188.23 6.63 43.09 44854.31
Ch Evrbrght 3.62 0.02 4.10 3.09 5.16 5.12 5902.08 DukeEner 90.21 -0.63 97.37 82.46 4.40 17.69 65769.48 Starbucks 87.39 -0.75 99.72 61.67 1.75 28.11 103201.69
Siemens 116.56 0.74 119.90 84.42 3.40 17.70 110384.94 DNB 163.90 -1.00 171.95 141.50 5.22 9.73 29251.95 HSBC 583.40 -1.80 687.70 0.78 7.06 11.23 153472.94
Ch Rail Cons 9.07 0.05 11.94 7.78 2.69 5.88 2421.71 Eaton 94.60 -0.74 95.88 67.75 3.14 15.81 39107.64 StateSt 81.37 0.58 81.79 48.62 2.53 15.10 29588.03
Volkswgn 175.20 -0.15 185.00 139.80 2.85 6.31 57600.95 Equinor 183.00 -2.00 203.90 144.50 5.04 11.84 69001.65 Imperial Brands 1947.2 36.20 2713.5 1439.09 9.64 11.98 24366.18
Ch Rail Gp 4.93 -0.02 8.21 4.45 3.02 5.53 2667.36 eBay 35.55 -0.24 42.00 28.93 1.26 15.11 28916.75 Stryker♦ 209.91 -2.31 223.45 156.35 1.06 21.86 78528.09
Hong Kong (HK$) Telenor 156.85 -2.55 190.80 156.20 5.49 38.96 25551.93 LlydsBkg 63.11 -0.14 73.66 48.16 5.17 21.04 59676.29
ChConstBk 6.61 -0.04 7.21 5.55 5.40 5.48 204357.13 Ecolab♦ 189.14 1.43 209.87 146.20 1.04 34.10 54518.57 Sychrony Fin 35.33 -0.35 38.18 24.92 2.56 6.06 22829.99
AIA 85.30 1.00 88.50 63.30 1.01 22.19 132603.99 Natl Grid♦ 942.60 -3.70 969.80 8.90 5.02 22.07 41511.75
China Vanke 33.10 0.20 35.60 26.25 3.68 8.33 6716.53 Qatar (QR) Emerson 76.82 -0.23 77.51 55.98 2.72 19.45 46795.2 T-MobileUS 79.15 0.53 85.22 65.56 - 19.11 67718.75
BOC Hold 27.00 -0.05 35.90 25.05 5.58 8.78 36709.43 Prudential 1442 12.50 1532.78 1109.67 3.42 14.17 48950.53
ChinaCitic 4.65 - 5.41 3.92 5.74 4.41 8899.09 QatarNtBk 20.55 0.06 20.98 16.47 3.11 13.49 52120.15 EOG Res 87.92 -0.52 107.89 64.33 1.15 16.03 51148.7 Target 123.34 -0.25 130.24 66.53 2.12 19.52 62498.42
Ch OSLnd&Inv 29.50 - 31.30 23.70 3.13 6.75 41562.9 RBS 240.60 0.60 274.20 2.23 2.29 14.54 37774
ChinaLife 22.25 0.40 23.35 16.48 0.84 16.72 21290.99 Russia (RUB) EquityResTP 80.17 -0.86 89.55 64.66 2.98 35.35 29771.48 TE Connect 96.19 1.48 97.99 73.92 1.99 15.79 32313.61
ChngKng 54.65 -0.20 72.50 49.00 3.57 6.45 25956.19 ReckittB 6138 -18.00 6744 5510 2.78 19.13 56711.88
ChinaMBank 40.85 -0.05 42.75 28.35 2.68 10.01 24116.51 Gzprm neft 256.55 -2.45 272.68 148.83 6.58 3.77 98301.66 Exelon 45.51 -0.13 51.18 43.42 3.35 18.04 44240.67 Tesla Mtrs 460.64 9.10 462.06 176.99 - -92.05 83027.27
Citic Ltd 9.95 -0.09 12.66 8.65 4.23 5.30 37221.57 RELX 1893 -5.50 2027 1597 2.22 24.55 48138.44
ChinaMob 63.80 -0.45 87.70 58.30 5.15 10.35 167988.23 Lukoil 6382 88.00 6382 4964.5 3.98 6.43 73856.48 ExpScripts 92.33 -3.47 101.73 66.93 - 11.10 52061.19 TexasInstr 130.46 3.50 132.20 92.36 2.51 22.73 121950.8
Citic Secs 18.00 0.10 21.20 13.12 2.26 14.92 5273.67 RioTinto 4440 10.00 5039 3750 5.43 7.17 78132.24
ChinaPcIns 31.65 0.40 34.75 24.35 3.67 8.75 11295.55 MmcNrlskNckl♦ 19588 140.00 19978 13001 11.14 12.35 50170.35 ExxonMb 69.63 -1.24 83.49 66.31 5.17 19.01 294611.92 TheTrvelers 135.93 -1.24 155.09 116.84 2.49 14.34 35085.27
CK Hutchison 73.05 -0.50 86.45 64.30 4.45 6.99 36225.03 RollsRoyce 668.20 -8.80 1003.5 663.40 1.75 -5.32 16305.36
ChMinsheng 5.85 0.02 6.36 4.98 6.87 4.17 6259.19 Novatek 1271 7.00 1382.2 1047.4 2.09 4.36 62462.13 Facebook 214.16 1.56 214.58 135.91 - 32.23 515369.24 ThrmoFshr♦ 328.02 2.88 330.14 222.00 0.24 34.65 131531.14
CNOOC 13.64 -0.08 15.14 10.74 5.25 9.06 78313.42 RylDShlA 2290.5 -18.50 2637.5 3.04 6.65 11.25 138154.74
ChMrchSecs 18.55 0.11 19.99 13.80 1.47 22.41 15291.71 Rosneft 455.60 -1.30 468.30 390.75 5.78 7.21 78152.13 Fedex 154.20 0.90 199.32 137.78 1.71 434.35 40264.56 TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69
HangSeng 161.00 0.70 212.60 156.00 4.84 12.22 39582.41 Shire# 4690 111.00 4780 2944 0.58 11.63 56567.13
Chna Utd Coms 6.02 - 7.57 5.21 0.92 37.03 18393.13 Sberbank 253.90 -1.10 258.19 190.37 6.41 6.18 88711.35 FordMtr 9.16 -0.01 10.56 8.03 6.98 21.50 35649.98 TJX Cos 61.30 -0.33 61.70 45.32 1.41 23.80 73755.16
HK Exc&Clr 269.80 1.20 286.20 222.00 2.55 34.73 43757.29 StandCh 701.60 -5.40 742.60 573.80 2.35 56.51 30347.87
ChShenEgy 16.60 0.04 20.40 14.66 6.34 6.23 7254.89 Surgutneftegas 52.20 0.83 52.77 24.06 1.26 4.77 30184.18 Franklin♦ 25.40 0.11 35.82 24.73 4.36 10.15 12678.77 UnionPac 178.48 -0.95 182.38 136.26 2.11 19.77 123900.8
MTR 45.20 -0.30 55.75 41.20 2.72 18.66 35792.45 Tesco 254.50 0.50 293.40 197.55 2.27 19.01 27340.02
ChShpbldng 5.34 - 7.10 4.29 0.17 271.60 14073.49 GenDyn 180.87 -1.22 193.76 155.93 1.75 14.73 52325.96 UPS B 115.65 -0.56 125.31 92.65 3.49 18.89 81038.82
SandsCh 43.30 0.30 44.70 32.80 4.70 22.24 45034.36 Saudi Arabia (SR) Vodafone♦ 146.66 -0.42 169.46 1.69 5.43 -22.19 51326.8
ChStConEng 6.02 -0.07 6.72 4.93 2.89 6.32 35699.76 GenElectric♦ 11.94 -0.20 12.24 7.65 0.36 560.71 104278.58 USBancorp 57.35 -0.36 61.11 46.24 2.84 12.38 89572.62
SHK Props 117.00 -0.40 142.00 106.00 4.12 7.36 43598.9 AlRajhiBnk 64.90 0.40 76.90 56.70 6.15 13.85 43250.53 WPP 1071 7.00 1085.5 791.00 5.60 19.23 17791.37
ChUncHK 7.15 -0.07 10.70 6.52 2.22 16.98 28133.45 GenMills 52.22 -0.38 56.40 39.49 4.04 15.63 31580.51 UtdHlthcre 289.00 -2.56 300.00 208.07 1.46 19.74 273798.18
Tencent 385.60 8.20 400.40 312.00 0.26 37.05 473666.55 Natnlcombnk 46.50 -0.40 64.40 40.60 5.04 11.49 37186.11 United States of America ($)
CNNC Intl 5.14 0.01 6.73 4.69 2.42 17.25 11532.27 GenMotors 34.91 -0.94 41.90 33.08 4.64 5.34 49871.71 UtdTech 152.51 -1.17 154.65 105.54 2.05 24.40 131657.15
SaudiBasic 91.00 -0.90 128.00 84.60 4.99 17.86 72772.83 21stC Fox A 36.78 0.21 41.70 27.73 1.33 14.39 13038.92
CSR 5.84 -0.04 8.62 5.01 2.99 11.99 3282.67 India (Rs) GileadSci 64.34 -1.31 70.50 60.89 4.07 28.50 81399.47 ValeroEngy 91.29 -0.24 101.99 69.44 4.08 15.53 37488.49
SaudiTelec 97.30 -0.40 117.40 91.10 4.38 15.98 51873.96 3M 177.07 -1.55 219.75 150.58 3.42 19.73 101824.22
Daqin 8.12 0.05 9.03 7.38 6.12 8.17 17400.54 Bhartiartl 445.10 -4.55 485.60 268.84 0.56 -7.84 31804.46 GoldmSchs 235.31 1.36 237.77 172.27 1.67 9.88 83320.22 Verizon 59.89 -0.39 62.22 52.28 4.31 14.46 247671.44
Gree Elec Apl 0.15 -0.01 0.37 0.01 - -0.04 6.75 HDFC Bk 1260.6 19.65 1305.5 1011 0.64 26.52 96132.29 Singapore (S$) AbbottLb 86.05 -0.29 89.24 67.00 1.53 43.92 152168.72 Halliburton 24.30 -1.09 32.71 16.97 3.15 16.78 21332.93 VertexPharm 224.57 0.54 225.66 163.68 - 25.54 57748.08
GuosenSec 13.06 0.23 15.13 8.26 0.95 20.69 15436.5 Hind Unilevr 1920.7 5.25 2190 1650 1.24 58.25 57893.09 DBS 26.05 0.19 28.64 23.74 4.79 10.14 49246.79 Abbvie 88.49 -0.91 92.30 62.66 5.02 36.61 130860.88 HCA Hold 148.28 -0.22 150.17 110.31 1.11 13.94 50293.36 VF Cp 98.76 -0.45 100.25 70.27 2.11 27.77 39442.14
HaitongSecs 9.21 -0.04 11.50 7.01 1.89 10.18 4038.16 HsngDevFin 2415.05 30.95 2472.75 1820 0.94 18.45 58140.03 JardnMt US$ 56.51 0.30 72.05 10.99 3.10 12.29 41444.25 Accenture 205.01 -3.42 213.25 139.85 1.53 25.85 134680.51 Hew-Pack 20.63 0.02 24.09 15.93 3.15 9.83 29979.26 Viacom 24.22 0.75 31.96 20.93 3.53 6.02 8573.32
Hngzh HikVDT 34.40 -0.01 37.24 23.55 1.80 25.77 40034.88 ICICI Bk 522.90 -2.80 552.20 336.15 0.21 47.42 47098.36 JardnStr US$ 31.50 0.50 40.70 29.03 1.11 10.72 34906.23 Adobe 333.71 - 334.79 227.29 - 55.12 161541.87 HiltonWwde 109.15 -0.27 112.79 69.12 0.59 32.44 30798.09 Visa Inc 189.70 0.51 191.14 133.30 0.56 33.49 324727.15
Hunng Pwr 3.94 - 5.26 3.50 3.05 28.13 2381.5 Infosys 727.90 -10.95 847.00 615.10 2.59 18.66 43159.87 OCBC 11.00 0.08 12.19 10.45 4.54 10.09 35833.46 AEP 93.74 0.07 96.22 72.44 3.04 20.43 46303.04 HomeDep 217.76 -2.20 239.31 172.00 2.38 21.35 237539.36 Walgreen 58.69 -0.90 74.95 49.03 3.26 12.64 52115.98
IM Baotou Stl 1.37 0.02 2.11 1.21 0.53 27.27 6255.3 ITC 235.35 0.25 310.00 234.05 2.64 19.07 40276.67 SingTel♦ 3.36 0.01 3.56 2.92 5.42 35.93 40609.8 Aetna - - - - - - - Honywell 175.92 -1.60 183.12 133.15 1.99 19.30 125697.16 WalMartSto 116.60 -1.05 125.38 93.11 1.83 23.05 330814.6
In&CmBkCh 5.91 -0.02 6.19 4.81 4.92 5.93 65963.47 L&T 1320.5 3.75 1607 1201.1 1.47 18.34 25804.25 UOB 26.70 0.33 27.97 23.39 4.09 10.15 33192.84 Aflac 52.52 -0.32 57.18 44.69 2.17 12.15 38546.96 HumanaInc♦ 364.07 -6.48 372.92 225.65 0.47 18.17 48212.35 WellsFargo 52.68 -0.43 54.75 43.34 3.72 10.66 222781.5
IndstrlBk 19.99 0.08 20.66 15.21 3.57 6.31 54897.4 OilNatGas 125.75 -0.50 178.90 115.55 6.01 5.71 22026.43 South Africa (R) AirProd♦ 227.44 1.54 241.90 153.63 2.14 26.90 50147.41 IBM 134.36 0.26 152.95 116.67 5.06 14.66 118994.25 Williams Cos 23.62 -0.28 29.55 21.90 6.67-739.62 28628.59
Kweichow 1094.53 16.54 1241.61 618.75 1.37 32.48 198187.62 RelianceIn 1524.6 23.10 1617.55 1086.4 0.46 20.17 134565.92 Firstrand 60.40 0.35 71.79 54.86 4.92 10.71 23666.77 Alexion 106.22 -0.36 141.86 94.59 - 15.30 23505.5 IllinoisTool♦ 177.14 -1.40 182.34 125.82 2.45 21.92 56933.88 Yum!Brnds 102.13 0.34 119.72 88.52 1.69 26.50 30888.95
Midea 1.17 0.02 1.69 0.98 4.39 -4.00 32.35 SBI NewA 318.40 -0.60 373.80 244.35 - 21.43 39564.86 MTN Grp 80.40 0.01 114.43 75.05 6.51 15.97 10582.23 Allergan 190.94 -0.57 192.27 114.27 1.64 -6.45 62679.63 Illumina 328.43 2.90 380.76 263.30 - 47.17 48279.21 Venezuela (VEF)
New Ch Life Ins 34.95 -0.05 46.95 27.30 2.56 7.11 4647.69 SunPhrmInds 446.40 6.45 484.25 344.55 0.66 22.93 14912.9 Naspers N 2358.1 14.30 3750.01 2000.16 0.31 21.31 73244.7 Allstate 112.39 -0.77 113.32 81.63 1.86 14.07 36409.43 Intcntl Exch 94.87 0.17 95.56 71.20 1.20 24.21 52828.31 Bco de Vnzla 1739 264.00 1739 22.40 668.12 - 116.64
PetroChina 4.13 -0.07 5.47 3.50 3.75 15.62 11205.63 Tata Cons 2205.85 5.40 2296.2 1808 1.52 23.68 115247.18 Alphabet 1398.11 0.30 1403.5 1027.03 - 28.19 418913.21 Intel 59.17 -0.77 60.97 42.86 2.24 13.01 257367.75
South Korea (KRW) Bco Provncl 145000 17000 145000 2750 - 11.84 287.55
PingAnIns 93.60 -0.25 98.00 66.30 2.35 9.14 89642.76 Altria♦ 49.67 -0.17 57.88 39.30 6.95 50.16 92780.5 Intuit 267.06 0.65 295.78 195.33 0.74 44.04 69515.81
Indonesia (Rp) HyundMobis 252500 3000 268500 191500 2.06 10.85 20631.81 Mrcntl Srvcs 165000 - 165000 6000 0.01 4.56 184.75
PngAnBnk 17.15 0.08 17.60 9.62 0.87 10.56 47971.8 Amazon 1900.61 -2.27 2035.8 1566.76 - 79.09 942317.15 John&John 143.81 -0.29 147.84 125.00 2.74 25.73 378489.57
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 27400 -200.00 36000 24500 - -9.37 15080.43
Pwr Cons Corp 4.35 0.01 6.25 4.00 2.33 8.94 6987.76 AmerAir 27.09 -0.24 37.23 24.23 1.57 7.19 11864.8 JohnsonCn♦ 40.68 -0.50 44.65 31.20 2.72 30.32 31381.36
Israel (ILS) SK Hynix 94000 -300.00 97900 57600 1.66 11.18 58669.6 Closing prices and highs & lows are in traded currency (with variations for that
SaicMtr 23.53 0.17 30.30 22.49 5.54 9.12 39015.73 AmerExpr♦ 124.18 0.12 129.34 96.37 1.37 14.10 101608.78 JPMrgnCh♦ 136.15 -2.08 141.10 98.09 2.58 12.60 427032.42
TevaPha 31.36 -0.14 73.53 21.75 - -2.17 9858.92 SmsungEl 55800 300.00 57300 37950 2.63 14.83 285591.47 country indicated by stock), market capitalisation is in USD. Highs & lows are
ShenwanHong 0.08 0.00 0.14 0.04 - -4.04 90.13 AmerIntGrp 50.76 -0.64 58.66 39.83 2.68 23.37 44158.74 Kimb-Clark 136.56 0.47 143.50 107.44 3.19 22.00 46811.82
Italy (€) Spain (€) AmerTower♦ 223.84 -4.71 242.00 158.02 1.72 58.40 99147.79 based on intraday trading over a rolling 52 week period.
ShgPdgBk 12.50 0.04 13.33 9.91 2.90 5.95 50636.8 KinderM 21.12 -0.17 21.50 16.21 4.54 22.04 47824.75 ♦ ex-dividend
Enel 7.23 0.00 7.25 5.08 4.03 27.76 81895.25 BBVA 5.01 -0.02 5.68 4.19 5.41 6.49 37219.21 Amgen 237.84 -2.47 244.99 166.30 2.54 17.16 141317.64
Sinopec Corp 4.78 -0.02 6.93 4.32 9.43 10.59 15682.6 Kraft Heinz 30.59 -0.72 48.66 24.86 6.35 -3.24 37355.3 ■ ex-capital redistribution
ENI 14.32 0.00 16.06 12.92 6.11 19.92 57981.76 BcoSantdr 3.76 -0.02 4.68 3.39 4.58 11.30 69551.46 Anadarko 72.77 0.56 76.23 40.40 1.50 -63.37 36563.54
Sinopec Oil 2.41 -0.08 3.35 1.83 - 105.90 4183.38 Kroger 28.46 -0.34 29.97 20.70 2.11 13.02 22788.24 # price at time of suspension
Generali 18.42 0.14 19.63 14.62 5.15 12.39 32206.98 CaixaBnk 2.89 0.02 3.40 1.98 6.14 10.77 19226.2 Anthem 297.80 -2.65 317.99 227.16 1.13 17.01 75511.27
Denmark (kr) Iberdrola 8.95 -0.18 9.58 6.83 4.08 16.99 63468.35 L Brands 18.04 -0.13 29.69 15.80 10.69 8.13 4986.22
IntSPaolo 2.35 0.01 2.41 1.80 8.75 9.00 45747.14 Aon Cp 207.98 -0.59 212.65 141.88 0.86 33.05 48262.07 LasVegasSd 69.68 -0.41 70.94 51.17 4.68 26.50 53516.79
DanskeBk 107.80 1.10 135.65 85.90 8.22 6.62 13856.65 Inditex 31.93 0.40 32.19 22.69 2.10 26.27 110873.71
Unicred 13.16 0.08 13.69 9.07 2.14 5.86 32746.08 Apple 298.93 -0.87 300.90 145.90 1.07 23.611310517.19 LibertyGbl 22.44 -0.14 28.62 20.17 - -32.93 4073.35
MollerMrsk 9486 224.00 10555 6716 1.70 30.89 14227.92 Repsol♦ 14.23 -0.12 15.67 12.37 6.71 12.62 24215.75 ArcherDan 45.29 -0.37 47.20 36.45 3.26 20.26 25212.38 Lilly (E) 132.48 0.22 137.00 101.36 2.01 27.65 127198.12
NovoB 380.70 -1.35 393.95 299.05 2.23 22.52 105714.22 Telefonica 6.25 -0.10 7.90 5.86 6.67 18.18 36149.13

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Tesla Mtrs 460.64 451.54 9.10 2.01 42.31 10.1 2.85 Kweichow 1094.53 1077.99 16.54 1.53 -91.27 -7.7 -1.93 Jan 07 date Coupon S* M* F* price yield yield yield US Jan 07 date Coupon S* M* F* price yield yield yield US
Nokia 3.58 3.45 0.13 3.84 0.30 9.1 10.26 AmerAir 27.09 27.32 -0.24 -0.86 -1.60 -5.6 -10.45 High Yield US$ US$
Northrop 375.29 375.83 -0.54 -0.14 31.32 9.1 0.22 Kraft Heinz 30.59 31.31 -0.72 -2.30 -1.54 -4.8 -6.19 HCA Inc. 06/25 7.69 BB- Ba2 BB 120.50 3.51 0.00 0.09 1.86 United Utilities PLC 08/28 6.88 BBB Baa1 A- 121.52 3.90 0.02 0.00 -
Occid Pet 44.64 45.05 -0.42 -0.92 3.43 8.3 -1.51 Carnival 48.40 48.38 0.02 0.03 -2.44 -4.8 0.90 High Yield Euro United Utilities PLC 08/28 6.88 BBB Baa1 A- 121.52 3.90 0.02 0.00 -
ChStConEng 6.02 6.09 -0.07 -1.15 0.46 8.3 -3.04 SBI NewA 318.40 319.00 -0.60 -0.19 -16.00 -4.8 0.77 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 Barclays Bank plc 01/29 4.50 A A2 A+ 108.01 3.46 0.02 -0.03 -
Salesforce 175.50 173.45 2.05 1.18 12.86 7.9 -0.58 Perrigo 49.20 49.28 -0.08 -0.16 -2.46 -4.8 3.52 Barclays Bank plc 01/29 4.50 A A2 A+ 108.01 3.46 0.02 -0.03 -
Sinopec Oil 2.41 2.49 -0.08 -3.21 0.17 7.6 -0.90 GenMotors 34.91 35.84 -0.94 -2.61 -1.70 -4.6 -7.50 Emerging US$ Citigroup Inc. 06/31 3.30 BBB+ A3 A 98.99 3.41 0.02 -0.16 -
Deut Bank 7.43 7.19 0.25 3.47 0.52 7.5 13.60 MediaTek 426.00 424.00 2.00 0.47 -20.50 -4.6 -4.38 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Citigroup Global Markets Holdings Inc. 02/32 3.63 BBB+ A3 A 98.85 3.74 0.02 -0.03 -
PTT Explor 47.25 47.00 0.25 0.53 3.25 7.4 -8.20 Delphi 12.31 12.38 -0.08 -0.61 -0.53 -4.1 -0.62 Brazil 01/22 12.50 BB- Ba2 BB- 111.56 6.24 0.08 1.21 4.67
Brazil 01/23 2.63 BB- Ba2 BB- 95.75 3.80 -0.01 -0.40 1.29 Euro
GenElectric 11.94 12.14 -0.20 -1.65 0.78 7.0 0.73 Phillips66 107.01 107.81 -0.80 -0.74 -4.40 -3.9 -4.10 Electricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -
Lockheed 412.71 413.11 -0.41 -0.10 23.33 6.0 1.86 ICICI Bk 522.90 525.70 -2.80 -0.53 -21.05 -3.9 9.17 Poland 03/23 3.00 A- A2 A- 100.62 2.83 0.01 -0.21 0.58
Turkey 03/23 3.25 - Ba3 BB 88.50 6.59 -0.30 0.91 4.34 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -
PetroChina 4.13 4.20 -0.07 -1.67 0.23 5.9 -10.05 Firstrand 60.40 60.05 0.35 0.58 -2.40 -3.8 -11.86 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 122.92 0.83 0.02 -0.11 -
BP 498.80 504.10 -5.30 -1.05 27.20 5.8 -99.03 Target 123.34 123.58 -0.25 -0.20 -4.88 -3.8 13.14 Mexico 01/25 3.60 BBB+ A3 BBB 105.20 2.50 -0.01 -0.25 0.85
Colombia 01/26 4.50 BBB- Baa2 BBB 109.33 2.75 0.00 -0.15 1.10 AT&T Inc. 12/32 3.55 BBB Baa2 A- 125.40 1.36 0.00 -0.08 -
Hngzh HikVDT 34.40 34.41 -0.01 -0.03 1.82 5.6 -6.82 DiscFinServ 81.70 82.40 -0.70 -0.85 -3.12 -3.7 1.36
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Yen
CNOOC 13.64 13.72 -0.08 -0.58 0.72 5.6 -9.46 PPG Inds 128.61 129.09 -0.48 -0.37 -4.88 -3.7 2.13
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Mexico 06/26 1.09 BBB+ A3 BBB 100.69 0.98 -0.02 -0.04 -
Midea 1.17 1.15 0.02 1.74 0.06 5.4 1.89 Shrwin-Will 562.46 563.41 -0.95 -0.17 -21.08 -3.6 0.57
BrAmTob 3406.00 3350.00 56.00 1.67 174.50 5.4 -98.81 Lyondell 91.09 91.31 -0.23 -0.25 -3.40 -3.6 -4.29 Russia 06/28 12.75 BBB- Baa3 BBB 171.93 3.04 -0.02 -0.02 - £ Sterling
HK Exc&Clr 269.80 268.60 1.20 0.45 13.60 5.3 -1.43 Citic Ltd 9.95 10.04 -0.09 -0.90 -0.37 -3.6 -4.32 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
Ch Rail Cons 9.07 9.02 0.05 0.55 0.43 5.0 -13.10 Marathon Ptl 58.22 58.22 0.00 0.00 -2.03 -3.4 -6.35 Brazil 04/21 2.88 BB- Ba2 BB- 103.27 0.20 -0.01 -0.10 -1.37 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -
EOG Res 87.92 88.44 -0.52 -0.59 4.16 5.0 3.56 Bhartiartl 445.10 449.65 -4.55 -1.01 -15.40 -3.3 19.76 Mexico 02/22 1.88 BBB+ A3 BBB 103.70 0.13 0.01 -0.09 -1.44 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 close. *S - Standard & Poor’s, M - 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 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jan 07 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 07 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 1.50-1.75 30-10-2019 2.00-2.25 2.00-2.25 1.25-1.50 Index change change change 1 month 1 year VIX 13.75 -0.10 13.85 24.81 11.03 Jan 07 Price £ Yield Day Week Month Year High Low £m
US Prime 4.75 30-10-2019 5.25 5.25 4.25 Markit IBoxx VXD 13.97 -0.07 14.04 30.37 6.00 - - - - - - - - -
US Discount 2.65 30-09-2019 2.75 2.75 1.75 ABF Pan-Asia unhedged 207.34 0.06 -0.11 -0.11 1.61 8.03 VXN 16.97 -0.22 17.19 29.42 13.58 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 379.24 -0.12 0.76 0.76 1.18 11.89 VDAX 15.05 -0.92 15.97 - 10.48 - - - - - - - - -
UK Repo 0.75 02-08-2018 0.50 0.50 0.25 Corporates($) 313.74 0.43 0.70 0.70 0.70 0.70 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 100.66 0.66 -1.49 0.00 -7.04 -13.16 104.60 100.66 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 238.72 0.01 0.44 0.44 0.47 6.97 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 100.87 0.66 1.54 3.13 -5.71 -10.81 101.58 100.87 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 252.67 0.02 0.69 0.69 0.28 7.68 Tr 4pc '22 107.40 0.55 1.85 -1.79 0.00 -28.57 110.12 107.40 38.39
Gilts( £) 352.36 -0.19 1.12 1.12 0.48 8.20 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 122.27 0.61 5.17 -6.15 7.02 -36.46 126.04 122.14 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 282.08 0.51 0.90 0.90 1.04 8.56 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 104.37 0.65 4.84 -8.45 4.84 -42.98 107.75 99.97 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 368.92 -0.11 0.70 0.70 0.95 10.03 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 139.05 0.91 1.11 -9.90 -1.09 -37.24 146.36 132.46 35.86
Jan 07 (Libor: Jan 06) night Day Week Month month month month year Overall ($) 263.94 0.49 0.73 0.73 0.73 0.73 Australia - - - - - - - Tr 4.25pc '36 147.12 1.07 0.94 -9.32 -2.73 -33.54 155.71 137.54 30.11
US$ Libor 1.53700 0.000 0.001 -0.022 1.69213 1.87225 1.89425 1.95488 Overall( £) 354.01 -0.17 0.99 0.99 0.63 8.77 12/21 2.00 102.32 0.80 -0.03 -0.10 0.07 -0.97 Tr 4.5pc '42 165.57 1.21 0.00 -9.02 -3.20 -30.46 176.63 151.48 26.95
Euro Libor -0.57071 -0.004 -0.001 -0.002 -0.52286 -0.41714 -0.37229 -0.27029 Overall(€) 245.52 0.03 0.61 0.61 0.28 6.81 Austria - - - - - - - Tr 3.75pc '52 169.06 1.19 0.85 -9.16 -4.03 -30.81 182.25 148.79 23.87
£ Libor 0.67025 -0.012 0.009 -0.002 0.70350 0.79438 0.86575 0.96438 Treasuries ($) 244.22 0.58 0.84 0.84 0.84 0.84 02/47 1.50 124.86 0.52 -0.01 -0.12 0.00 -0.84 Tr 4pc '60 192.37 1.13 0.89 -9.60 -4.24 -32.74 209.19 165.39 23.89
Swiss Fr Libor 0.001 -0.77360 -0.67720 -0.61380 -0.48280 FTSE Belgium 06/22 1.40 104.76 -0.56 0.00 -0.02 -0.02 -0.26 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor -0.006 -0.09100 -0.04833 0.01500 0.10783 Sterling Corporate (£) - - - - - - 06/47 1.60 120.43 0.77 0.01 -0.07 0.03 -1.00
Euro Euribor
Sterling CDs
-0.007
0.000
-0.45000
0.75000
-0.38500
0.83000
-0.32500
0.89500
-0.24800 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 Canada - - - - - - - GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 507.85 1.48 - - 10.32 29.48 03/22 0.50 97.61 1.64 0.03 -0.04 -0.01 -0.21
US$ CDs 0.000 2.45000 2.56000 2.65000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 Denmark - - - - - - - Price Indices Day's Total Return Return
Euro CDs - - - - 11/21 3.00 106.88 -0.68 0.00 -0.03 0.03 -0.19 Fixed Coupon Jan 07 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 90.41 -0.04 2453.76 0.00 1.02 0.59
Short 7 Days One Three Six One Index change change change high low Finland - - - - - - -
04/21 3.50 105.23 -0.61 0.01 -0.01 0.02 -0.13 2 5 - 10 Years 182.94 -0.19 3667.54 -0.21 3.74 0.66
Jan 07 term notice month month month year Markit iTraxx 3 10 - 15 Years 218.10 -0.18 4626.96 -0.04 6.46 0.92
Euro -0.76 -0.46 -0.71 -0.41 -0.65 -0.35 -0.54 -0.24 -0.54 -0.24 -0.52 -0.22 Crossover 5Y 212.23 -0.48 4.95 -7.78 259.86 204.20 France 04/22 3.00 108.35 -0.60 0.00 -0.01 0.00 -0.26
4 5 - 15 Years 190.63 -0.18 3898.94 -0.15 4.38 0.78
Sterling 0.45 0.55 0.70 0.80 0.78 0.88 0.82 0.97 0.89 1.04 Europe 5Y 44.36 -0.65 0.14 -2.64 59.49 43.29 05/25 0.50 104.73 -0.37 0.00 -0.07 -0.01 -0.55
5 Over 15 Years 368.38 -0.14 5935.78 0.50 12.73 1.17
Swiss Franc - - - - - - - - - - - - Japan 5Y 44.50 -0.56 0.72 -8.49 64.12 43.21 05/48 2.00 130.96 0.78 0.00 -0.09 0.02 -0.86
7 All stocks 185.55 -0.12 3889.84 0.19 7.18 1.08
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 54.22 -0.39 2.63 -1.25 69.82 51.13 Germany - - - - - - -
US Dollar 1.48 1.78 1.49 1.79 1.57 1.87 1.73 2.03 1.74 2.04 1.79 2.09 07/22 1.75 105.99 -0.63 0.00 -0.03 0.00 -0.13 Day's Month Year's Total Return Return
Markit CDX 02/25 0.50 105.45 -0.55 0.00 -0.08 -0.01 -0.36
Japanese Yen -0.25 -0.05 -0.25 -0.05 -0.20 0.10 -0.20 0.10 -0.10 0.20 -0.10 0.20 Index Linked Jan 07 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 180.79 -1.17 6.88 -19.04 215.60 173.62 08/48 1.25 128.76 0.21 0.00 -0.11 0.01 -0.65
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 1 Up to 5 Years 306.40 -0.05 0.06 -0.90 2491.75 0.06 0.20
Nth Amer High Yld 5Y 280.32 -0.83 1.57 - 302.95 274.89 Greece 02/25 3.00 114.99 1.11 0.04 -0.06 -0.19 -3.46
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 769.14 -0.74 0.85 5.55 5794.59 0.85 6.03
Nth Amer Inv Grade 5Y 45.88 -0.03 0.90 -4.23 63.32 43.98 02/25 3.00 114.99 1.11 0.04 -0.06 -0.19 -3.46
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 501.33 -0.27 -0.04 2.04 3965.89 -0.04 2.98
Ireland 03/22 0.80 102.81 -0.48 -0.03 -0.05 0.03 -0.30 4 Over 15 years 996.99 -0.89 1.12 6.69 7322.11 1.12 7.00
05/30 2.40 123.29 0.13 0.00 -0.07 0.00 -1.02 5 All stocks 690.35 -0.66 0.75 5.08 5290.15 0.75 5.65
Italy - - - - - - -
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 04/22 1.20 102.62 0.02 0.01 -0.04 -0.11 -1.25 Yield Indices Jan 07 Jan 06 Yr ago Jan 07 Jan 06 Yr ago
06/25 1.50 104.26 0.70 0.00 -0.05 -0.13 -1.58 5 Yrs 0.50 0.47 0.83 20 Yrs 1.23 1.22 1.74
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 122.76 2.34 0.01 -0.05 -0.07 -1.27 10 Yrs 0.81 0.79 1.27 45 Yrs 1.11 1.11 1.69
Crude Oil† Jan 62.79 -0.04 Corn♦ Mar 383.75 -1.25 - - Prev return stock Market stocks
Japan - - - - - - - 15 Yrs 1.10 1.09 1.60
Brent Crude Oil‡ 67.98 -0.45 Wheat♦ Mar 547.75 -3.25 Can 4.25%' 21 - - - - - - -
- - - - - - -
RBOB Gasoline† Jan 1.74 -0.01 Soybeans♦ Mar 943.00 10.50 Fr 2.25%' 20 - - - - - - -
06/22 0.10 100.61 -0.15 -0.01 -0.01 0.01 0.04 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Mar 302.00 4.00 Swe 0.25%' 22 - - - - - - -
09/47 0.80 111.12 0.38 -0.01 -0.01 -0.03 -0.28 Real yield Jan 07 Dur yrs Previous Yr ago Jan 07 Dur yrs Previous Yr ago
Natural Gas† Jan 2.12 -0.04 Cocoa (ICE Liffe)X Mar 1821.00 33.00 UK 2.5%' 22 112.96 -2.451 -2.445 0.30 15.74 721491.80 28
Netherlands 07/22 2.25 107.33 -0.63 0.00 -0.04 -0.02 -0.19 Up to 5 yrs -2.15 2.87 -2.16 -2.05 -2.65 2.89 -2.67 -2.57
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2505.00 15.00 UK 2.5%' 24 - - - - - - -
07/25 0.25 103.81 -0.43 0.00 -0.09 -0.01 -0.43 Over 5 yrs -1.90 24.64 -1.93 -1.67 -1.92 24.69 -1.95 -1.69
Uranium† Jan 25.15 0.00 Coffee(Robusta)X Jan 1323.00 0.00 UK 2%' 35 - - - - - - -
Carbon Emissions‡ - - Coffee (Arabica)♥ Mar 120.50 -2.05 New Zealand - - - - - - - 5-15 yrs -2.34 9.83 -2.36 -2.00 -2.39 9.84 -2.42 -2.11
US 0.625%' 21 - - - - - - -
White SugarX 363.30 -0.70 05/21 6.00 106.15 1.39 -0.02 -0.04 -0.03 -0.79 Over 15 yrs -1.86 28.95 -1.89 -1.64 -1.87 28.99 -1.90 -1.65
Diesel† - - US 3.625%' 28 - - - - - - -
Sugar 11♥ 13.70 -0.01 Norway - - - - - - - All stocks -1.90 21.91 -1.93 -1.67 -1.93 22.00 -1.96 -1.70
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1825.50 -6.50 Cotton♥ Mar 69.80 -0.27 05/21 3.75 103.29 1.31 0.01 0.00 0.03 0.28 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1375.00 25.00 Orange Juice♥ Mar 98.50 -0.60 Portugal 04/21 3.85 105.61 -0.55 -0.01 -0.01 -0.01 -0.42 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 6148.50 5.50 Palm Oil♣ - - 10/25 2.88 116.35 0.04 0.01 -0.06 -0.07 -1.20 Gilt Closing Prices information contained herein is proprietary to
Lead 1912.50 -6.50 Live Cattle♣ Feb 127.28 0.00 BONDS: TEN YEAR GOVT SPREADS Spain - - - - - - - Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 13860.00 50.00 Feeder Cattle♣ Jan 147.60 4.00 01/21 0.05 100.51 -0.42 0.00 -0.01 -0.01 -0.30 accurate, complete or timely; and does not constitute investment advice.
Tin 17075.00 200.00 Lean Hogs♣ Feb 68.55 0.00 Spread Spread Spread Spread Sweden - - - - - - - Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2349.00 29.50 Bid vs vs Bid vs vs 06/22 3.50 109.19 -0.31 0.00 0.00 0.03 -0.08
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland - - - - - - - All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1573.10 24.35 Jan 06 Month Year 05/22 2.00 106.65 -0.76 -0.01 -0.04 0.00 -0.05 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia - - - Italy - - -
Silver (US cents) 1844.00 23.00 S&P GSCI Spt 441.09 1.39 3.69 United Kingdom - - - - - - - Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria - - - Japan - - -
Platinum 983.00 0.00 DJ UBS Spot 81.37 -2.39 -4.90 Belgium 0.77 - - Netherlands -0.43 - - 07/22 0.50 99.90 0.54 0.04 -0.02 -0.01 -0.26 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 2016.00 39.00 TR/CC CRB TR 197.39 3.57 5.25 Canada - - - Norway - - - 09/25 2.00 108.07 0.55 0.03 -0.07 0.01 -0.45 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark - - - Portugal 0.04 - - 07/47 1.50 106.13 1.24 0.02 -0.12 -0.04 -0.57
Iron Ore 94.00 0.00 UBS Bberg CMCI TR 15.03 3.78 5.75 Finland - - - Spain - - - United States - - - - - - - Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 86.00 6.00 LEBA EUA Carbon 26.79 9.26 8.59 France 0.78 - - Switzerland - - - 07/22 1.88 100.77 1.57 0.03 -0.03 -0.07 -0.90
Baltic Dry Index 791.00 -53.00 LEBA CER Carbon 0.19 0.00 -24.00 Germany - - - United Kingdom - - - 05/25 2.13 102.45 1.65 0.03 -0.06 -0.06 -0.90
LEBA UK Power 2720.00 -5.75 -39.61 Greece 1.11 - - United States - - - 11/47 2.75 109.58 2.28 0.03 -0.07 -0.01 -0.71
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.
Wednesday 8 January 2020 ★ FINANCIAL TIMES 19

MARKETS & INVESTING

Fixed income. Storm fears Currencies

Thai central
Climate change to raise costs bank steps up
effort to curb
for US muni bond issuers soaring baht
EVA SZALAY

Thailand’s central bank has stepped up

its battle against a startling rally in the
baht that has hurt exports and tourism.
Policymakers have expressed unease
at the baht’s ascent for months, making
it clear they have been monitoring the
exchange rate.
But after the baht ended 2019 at its
highest point in more than six years, the
central bank told analysts yesterday
that it will consider taking steps to cool
it, encouraging outflows and taking
“additional measures if necessary”,
newswires reported.
The baht pulled back somewhat after
the comments. But analysts and inves-
tors said the central bank was likely to
struggle to turn the currency around.
“The combination of a powerful
medium-term household saving trend,
recent improvement in Chinese tourism
and the eventual recovery in global
trade will complicate policymakers’
efforts to weaken the currency,” wrote
analysts at Lombard Odier.
The baht strengthened to its highest
level against the dollar since May 2013
on the last trading day of 2019, with the
dollar trading below Bt30.
“In 2019, the Thai baht has really
come to the fore,” said Kit Juckes, an
analyst at Société Générale. “It’s the first
year that the dollar has ended below

Extreme chances of extreme weather hitting a

Investors grow more alert to
extreme weather risk and push
pricier borrowing on to cities
BILLY NAUMAN
Municipal bond investors across
America are waking up to the financial
risks of climate change, as increasingly
frequent extreme weather threatens
cities’ ability to pay back their debts.
Within a decade, according to
research from BlackRock, issuers
equivalent to 15 per cent of today’s
“muni” market are likely to see increas-
ing impacts of weather-related events
that could knock as much as 1 per cent
off their economic output.
Now, concerns over climate change
exposures have begun to spread into
the $4.1tn market, about one-quarter
the size of the US Treasury market,
where cities, states, counties or other
local governments go to raise money.
About $11bn of munis change hands
every day, according to the Securities
Industry and Financial Markets Associ-
ation.
It is only a “matter of time” before
gaps in funding costs begin to emerge
between cities with robust climate
adaptation plans and those without,
said Dan Rabasco, Boston-based head of
municipal bonds at Mellon.
“The risk has been identified by mar-
ket participants,” he said. “Looking at
the severity of storms picking up . . . it
will start to be factored in.”
To help put investors’ mind at ease, he
added, borrowers need to start spelling
out their resilience plans explicitly.
“What plans are they making? Are
they hardening their infrastruc-
Muni bond market shares at risk of climate-led GDP losses
Portion of index value, 2020-2100 (%)
0.5-1% GDP loss
1-2% GDP loss
2-3% GDP loss
3% or more GDP loss
2020-40 2040-60
Sources: BlackRock Investment Institute; Rhodium Group
ture . . . are they trying to insulate
central services? If they’re just stating
the obvious, that’s not sufficient,” he
said.
Although Mr Rabasco declined to
comment on any specific bond issuers,
East Baton Rouge, which was hit hard by
flooding four years ago, is perhaps a case
in point.
In its prospectus for a $130m bond
issued last August, the parish — the
most heavily populated in the state of
Louisiana — mentioned climate change
only in general terms and did not put
forward a detailed plan of actions it
would take to buffer its effects.
“The occurrence of such extreme
weather events has previously caused
and could in the future cause negative
economic impacts in the issuer
that could result in a reduction of sales
tax revenue,” the bond documents
read.
Credit rating agencies have begun to
factor such risks into their evaluations
and reward those cities that appear well
prepared.
Miami Beach, for example, issued
40
30
20
10
0 For now, investors are not punishing
2060-80 2080-2100
“general obligation” bonds — backed by
the city’s taxing authority, rather than
any particular stream of revenue — in
March last year.
They were rated AA+ by Moody’s par-
tially because of the Florida city’s cli-
mate resilience work.
“In our view, the city maintains
among the most robust plans attempt-
ing to address [climate change] risks
that we’ve reviewed for US local govern-
ments,” Moody’s wrote in its analysis.
Where climate risk is most relevant to
munis is where it can create an “acute
revenue pressure”, said Michael Rinaldi,
senior director in Fitch Ratings’ public
finance group.
This is especially the case for bonds
backed by sales tax income — such as
the one issued by East Baton Rouge —
where a specific event can upend the
economy even for a short period of
time.
That happened in 2016 and 2017, he
noted, when public fears over the Zika
virus ate into hotel tax collections across
the state of Florida.
Fitch uses historical data to gauge the
weather such city but, with global warming causing
as floods in these events to occur more frequently,
Louisiana is the models are far from perfect.
raising US bond As part of an ongoing environmental,
market costs for social and governance arms race among
municipalities rating agencies, S&P recently rolled out
Jonathan Bachman/Reuters
a new tool that uses its data on
companies’ assets to better predict
physical climate risk for corporate issu-
ers — but has yet to apply the system to
munis.
borrowers over these issues.
Earlier this year, BlackRock analysts
compared two bonds with similar char-
acteristics but vastly different climate
risk profiles and found no difference in
their yields.
The first came from Jupiter, a city
near West Palm Beach, in an area beset
by hurricanes. The second was from
Neptune, New Jersey — an area near the
Jersey Shore which is much more insu-
lated from storms.
“If climate-related risks were
being considered as a key factor,
we would have expected the Neptune
bond to carry a lower yield [higher
price] than the Jupiter bond,”
BlackRock’s report states. “We found
similar results for other spot checks of
bonds in areas of high and low climate
‘Looking at risk.”
Mr Rabasco chalks this up to strong
the severity demand for municipal bonds, evident in
of storms dozens of consecutive weeks of inflows
into specialist muni funds last year.
picking “In an environment like that, inves-
up . . . it tors aren’t as discerning . . . They don’t
make analytical choices because they
will start need to put cash to work,” he said.
to be Still, he expects borrowing costs to
diverge before long. “There’s a bit of a
factored in’ learning curve but it’s happening.”
‘In 2019, the Thai baht
has really come to the
fore. From FX bad boy
to A-student’
Bt30 since 1996. From FX bad boy to
A-student.”
The baht was one of the best perform-
ing emerging markets currencies in the
world last year, notching up gains of
9 per cent against the dollar and
prompting the central bank to cut inter-
est rates twice.
The strong currency has already hit
the country’s export sector, which con-
tracted in November by the most since
January 2016.
Shortly after the exchange rate went
below 30, the baht abruptly declined,
stirring speculation that the central
bank may have bought dollars to dis-
rupt the baht’s appreciation.
Figures on the size of the country’s
foreign currency reserves due on Friday
will confirm whether the central bank
actively sold its currency to buy dollars
in the last two days of December.
Ashish Agrawal, head of FX and
emerging markets macro strategy
research at Barclays, said that market
participants were likely to heed the
warnings from the central bank.
“We expect the baht to weaken mildly
against the dollar in the coming quar-
ters, reflecting a moderating current
FastFT account surplus, expected portfolio out-
Our global flows amid rich valuations and risks of
team gives you more measures to curb the baht’s
market-moving strength,” he said.
news and views, Still, few predict a reversal. The con-
24 hours a day sensus among analysts is for the dollar
ft.com/fastft to trade just above Bt30 by the end of
the year, according to Bloomberg.

Equities Asset management

Megvii makes headway towards Hong
Kong debut after US sanctions setback
GEORGE HAMMOND AND MERCEDES
RUEHL — HONG KONG
Megvii, the $4bn Chinese facial recog-
nition company under US sanctions,
has cleared a big hurdle on its way to a
Hong Kong stock market debut,
putting its $500m initial public offer-
ing back on track.
The stock exchange’s 27-member listing
committee has cleared Megvii to pub-
lish a new prospectus, according to peo-
ple involved in the process. The bourse
said in November that the company had
to provide more information about the
effect of US sanctions on its operations.
The decision did not constitute formal
approval to list, said the people, but it
revived a process that was threatened
after the US commerce department put
Megvii on a blacklist last year on the
grounds of alleged human rights abuses
in China’s Xinjiang province.
Megvii has now been asked to submit
an updated prospectus, which will again
require the committee’s approval before
an IPO can go ahead, the people said.
Beijing-based Megvii is one of China’s
leading artificial intelligence start-ups
and it hopes to raise about $500m with a
listing this year, after initially aiming for
$1bn. There is no timetable for the IPO.
The US commerce department in
October put Megvii on its so-called
entity list, accusing the company of aid-
ing the “repression, mass arbitrary
detention and high-technology surveil-
lance” against Uighurs and other pre-
dominantly Muslim minorities in the
Xinjiang region. It also accused the com-
pany of “acting contrary to the foreign
policy interests of the US”.
The blacklisting of the company
New angle: Megvii is known for its
Face++ facial recognition platform
prompted Goldman Sachs to review its
role in sponsoring the IPO, though it has
not withdrawn from the deal.
Megvii said in 2018 that to the best of
its knowledge only 1 per cent of its reve-
nue — which that year was about $200m
— was derived from projects in Xinjiang.
It said it did not generate any revenue
from Xinjiang in the six months to the
end of June 2019. Megvii was also men-
tioned in a May report from Human
Rights Watch about surveillance in Xin-
jiang but HRW has since withdrawn that
allegation.
The company, founded in 2011 and
known for its Face++ facial recognition
platform, was valued at $4bn in its latest
funding round in May last year. It would
be the first Chinese AI company to go
public.
It reported a net loss of Rmb5.2bn
($748m) for the first six months of 2019,
according to a stock exchange filing,
against revenue of Rmb949m.
The lossmaking start-up was able to
pursue an IPO in Hong Kong after the
exchange changed rules in 2018 that
allowed unprofitable companies to list.
Additional reporting by Hudson Lockett
and Daniel Shane in Hong Kong
Franklin Templeton heads for sixth year
of outflows amid hit for Hasenstab fund
RICHARD HENDERSON — NEW YORK
Franklin Templeton is set to mark 2019
with more outflows than any other US
fund manager, according to the latest
data from research group Morningstar,
led by an exodus of investors from a
bond fund run by emerging markets
guru Michael Hasenstab.
Investors clawed back $21bn from the
company’s mutual funds and exchange
traded funds in the first 11 months of
last year, a rate of $430m per week,
according to the data.
The outflows extend a string of annual
investor withdrawals that stretch back
to 2014 and represent a sizeable chunk
of the group’s assets under manage-
ment, which stood at $692bn at the end
of November.
This amount has fallen by a quarter in
the past five years despite the surging
markets that helped mask outflows
from active funds at many of its peers.
The largest outflows came from the
Templeton Global Bond Fund helmed
by Mr Hasenstab, which suffered $4.6bn
in redemptions.
Mr Hasenstab has gained a reputation
for bold bets on cheap, unloved sover-
eign debt but was wrongfooted by two
key developments last year. His fund
largely missed the rally in US govern-
ment bonds. He also faced steep losses
on Argentine debt as President Maurico
Macri was swept from office with his
holding of Argentina’s bonds falling
$1.8bn in a single day. The fund fell short
of its benchmark, the FTSE World Gov-
ernment Bond index, by 5.3 per cent.
Other funds to lose assets included
[Hasenstab] faced steep
losses on Argentine debt
as President Macri
was swept from office
the Franklin Mutual SharesFund, a US-
focused stock fund, which shed $3.4bn,
and the Franklin Mutual Global
Discovery Fund, a global stock fund,
which suffered $3.1bn in withdrawals,
according to Morningstar data.
Both funds also missed their bench-
marks for the year.
The outflows reflect the challenges for
active managers both in outpacing the
benchmarks they are measured against
and fighting the onslaught of passive
investing. Morningstar’s latest esti-
mates show Franklin Templeton edged
ahead of Invesco, which suffered $20bn
in outflows for the first 11 months of
2019, and T Rowe Price, with $17bn.
Companies are set to confirm full-year
figures in the coming weeks.
T Rowe Price said those outflows had
been offset by inflows into other funds it
runs, such as investment trusts.
The share price of Franklin
Resources, Franklin Templeton’s parent
company, has halved over the past five
years and none of the dozen analysts
that cover the company’s stock has a
buy rating despite the tumble, accord-
ing to Bloomberg. Only four have a hold
rating — eight advise investors to sell.
The 72-year-old company, based in
San Mateo, California, grew into one of
the world’s largest fund houses by
linking everyday investors with the
markets through mutual funds run by
professional investors.
But the firm was poorly prepared for
the dramatic swing toward passive
investing over the past decade, launch-
ing its first suite of passive ETFs only in
2017.
20 ★ Wednesday 8 January 2020

The day in the markets Top-tier bonds

What you need to know
are not as safe
3 Renminbi climbs against the dollar as
as they may seem
Sino-US trade tension cools
China’s currency strengthens to five-month high
3 Gold stays above $1,500 an ounce but Against the dollar (Rmb per $)
oil slides
3 European equities rebound, buoyed by
Frankfurt’s Dax
6.85

6.90
Monica Erickson
Global markets steadied while oil gave
back some of its sharp gains yesterday as
6.95

7.00
Markets Insight
investors digested the risk of further
conflict between Tehran and Washington. 7.05

I
George Lagarias, chief economist at ndividuals and institutions alike return. Other dynamics can be at play, But many financial professionals may
Mazars, said central banks’ willingness to 7.10 have grown very fond of high-qual- notably relative value investing, where be overlooking this other risk — the
underwrite risk has helped insulate global ity US corporate bonds, which are investors buy bonds that carry attrac- raised sensitivity to a change in interest
markets from major events. 7.15 prized for their relative safety. But tive spreads compared with other rates given the increase in duration.
“There is an abundance of liquidity and after a long rally, these bonds pose bonds, pushing spreads of those securi- Treasury yields and investment grade
7.20
a scarcity of equities to invest in,” he said. greater risk than many may realise. ties lower and their prices higher. corporate spreads had a historically
“Markets are pretty happy to shake off Jul 2019 Jan The duration of this class of assets — Indeed, this has happened over the negative correlation. As the economy
most risks very quickly.” 2020 its interest rate risk — has increased to past year as yields outside the US strengthened, spreads would tighten
Source: Bloomberg
The continent-wide Europe Stoxx 600 near record highs while spreads over the remain low and in some cases negative, and Treasury yields would increase. As
index rose 0.3 per cent, having fallen 0.4 yield of equivalent Treasuries have driving non-US investors into US credit. the economy got weaker, spreads would
per cent on Monday. Frankfurt’s Xetra fallen to near record lows. The last component of return, dura- widen and Treasury yields would fall.
Dax stood out among the region’s “We reckon the phase one deal should retreat in global equities on Monday, was A pick-up in interest rates, depending tion, is near an all-time high. The higher Movements in spreads and Treasury
bourses, rising 0.8 per cent following make it over the line as planned . . . while mixed yesterday. on its speed and longevity, could signifi- the duration, the higher the sensitivity yields would offset each other.
news of healthy German construction signs of green shoots in the economy also The S&P 500 dipped 0.3 per cent while cantly push down prices across the mar- to changes in interest rates. How did this But this relationship has broken
data for the close of 2019. should support the currency, though we the technology-heavy Nasdaq Composite ket, which totals more than $7tn, come about? In part, because of a trend down. Over the past couple of years,
The IHS Markit purchasing managers’ still see only stabilisation in the economy index remained flat at midday in New accounting for just over a quarter of the of companies issuing longer maturity Treasury yields and corporate spreads
index revealed that construction sat at a at large and think the recovery is on York. total US bonds outstanding. That could have displayed a positive correlation.
happen even without a deterioration in In other words, rates and spreads
nine-month high in December, owing to a
sustained upturn in homebuilding.
shaky legs, for now,” said Freya Beamish,
chief Asia economist at Pantheon
Gold, which has soared since the US
attack on Baghdad last Friday, stayed credit quality.
Given the age of the have moved in the same direction —
In Asia, China’s renminbi rose 0.6 per Macroeconomics. above the $1,500-an-ounce mark, rising Returns from bonds break down into business cycle, investors lower and tighter in 2019, and higher
four basic components. The first is the and wider in 2018.
cent to reach Rmb6.9340 per dollar as
tension between Washington and Beijing
Japan’s Nikkei 225 Average rose 1.6 per
cent while the CSI 300 index of stocks
0.3 per cent. But oil slid.
Brent crude, the international security’s yield. The other three are the
are on the lookout for signs It is difficult to confirm why this rela-
cooled ahead of the expected signing of a listed in Shanghai and Shenzhen climbed benchmark, sank 1.5 per cent to $67.90 a movement in Treasury rates, the move- of credit deterioration tionship has changed but a plausible
“phase one” trade deal at the White 0.8 per cent. barrel while WTI, the US marker, fell 1.1 ment in credit spreads, and duration. cause might be found in central bank
House on January 15. Wall Street, which had bucked a wider per cent to $62.58 a barrel. Alex Janiaud The yield is the sum of the equivalent policy. As the US Federal Reserve
Treasury yield plus the spread over that bonds, looking to lock in better long- remains accommodative, Treasury
Treasury yield. The yield on the asset term borrowing costs. However, a large rates remain low, “animal spirits”
Markets update class is near all-time lows, hovering part of the increase is because of lower remain high in the market and investors
below 3 per cent. interest rates. look for yield — moving into corporate
The rate component is simply the As rates have fallen, the periodic cou- credit and pushing down spreads.
nominal government yield. In 2019, pons have decreased, meaning that a If policy were to change, as it did in
US Eurozone Japan UK China Brazil Treasury rates fell, lifting the prices of higher portion of the bonds’ return 2018, watch out. Yields and spreads
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa investment-grade bonds. comes from the return of principal at could go higher in tandem.
Level 3238.03 1632.69 23575.72 7573.85 3104.80 116308.77 The benchmark ICE Bank of America maturity. Historically, the duration of Falling Treasury yields and spread
% change on day -0.25 0.19 1.60 -0.02 0.69 -0.49 Merrill Lynch US Corporate Index the investment grade universe has hov- compression formed tailwinds for the
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ returned 14 per cent last year, the best ered around six years; it is now over 7.6 investment grade market in 2019 but we
Level 96.835 1.114 108.620 1.312 6.938 4.085 performance since 2009. years. At this level, a 1 per cent increase saw the inverse in 2018. Investors
% change on day 0.170 -0.447 0.282 -0.304 -0.528 0.863 About half of that return has come in either spreads or Treasury rates should pay attention and consider
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond from a decrease in Treasury rates — now would push prices down by 7.6 per cent. reducing the duration of their invest-
Yield 1.807 -0.287 -0.015 0.715 3.153 6.668 near their lowest levels on record. As 2020 gets under way, the market is ment grade corporate holdings before
Basis point change on day 0.520 0.000 2.000 2.800 -0.300 3.800 The spread component is the addi- offering near-record lows in yield and those tailwinds — whether on rates,
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) tional yield over the Treasury rate spread and a near-record high in dura- spreads or both — turn into headwinds.
received for taking on credit risk — pri- tion. This is not a great set-up. Given the
Level 374.03 67.98 62.52 1573.10 18.44 2839.20
marily company — or industry-specific advanced age of the business cycle, Monica Erickson is head of the investment
% change on day 0.03 -0.66 -0.48 1.57 1.26 0.28
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.
risk. Factors such as credit metrics and investors are rightly on the lookout for grade corporate team at DoubleLine
cash flow growth affect this part of the signs of credit deterioration. Capital in Los Angeles
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
3280 1640 7680

3200 1600
7360
3120 1560

| | | | | | | | |
3040 | | | | | | | | | | | | | | | | | | | |
1520 | | | | | | | | | | | | | | | | | | | | 7040 | | | | | | | | | | |

Nov 2020 Jan Nov 2020 Jan Nov 2020 Jan

Biggest movers
% US Eurozone UK
Apache 24.92 Infineon Tech 4.96 Ocado 4.25
Micron Technology 6.73 Renault 3.53 Kingfisher 3.83
Ups

Western Digital 5.85 Deutsche Bank 3.47 Associated British Foods 2.18
Microchip Technology 5.67 Publicise 2.82 Sainsbury (j) 1.94
Akamai 3.66 Grifols 2.74 Barratt Developments 1.93
%
Halliburton -4.28 Wartsila -3.21 Nmc Health -10.59
Baker Hughes -3.37 Endesa -2.11 Standard Life Aberdeen -3.35
Downs

National Oilwell Varco -3.20 Iberdrola -1.95 Rentokil Initial -2.23

Technipfmc -3.18 Telenor -1.60 Centrica -2.14
Helmerich & Payne -3.05 Seadrill -1.54 Intertek -1.76
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Eurozone London

Microchip Technology led the US BioMérieux of France hit a record high on Rentokil was under pressure after Credit
chipmakers higher after posting fiscal the back of a Kelper Cheuvreux upgrade Suisse turned cautious.
third-quarter sales that topped forecasts of the biotechnology group to “buy”. While Rentokil’s pest control markets
and saying December sales had remained The broker highlighted US outpatient are “innately stable”, currencies have
strong with the order backlog improving. data pointing to a much stronger flu been moving against it, while rising
Cowen also saw a brightening outlook season than last winter with recent wages costs in the US have already
for memory chips with the broker turning Centers for Disease Control and stalled margin growth at sector peer
positive on Micron Technology and Prevention weekly reports suggesting a Rollins, Credit Suisse said.
Western Digital. Recent pricing looks rebound in patient numbers to 2017-18 The broker also argued that US
more resilient than feared and 5G levels. acquisitions were getting more scarce.
smartphone handset launches should Instrument sales should also recover Imperial Brands and British American
help tighten supply, the broker said. this year, Kepler added. Tobacco rose after US industry data
FireEye, the IT security specialist at the Clariant rose after Vontobel said the suggested that both had improved their
centre of recent bid talk, rose after Swiss chemical maker’s disposal market share last month, with Altria and
SunTrust upgraded to “buy”. programme was likely to make it a the smaller manufacturers bearing the
Iran tension should translate into takeover target. brunt of tumbling sales volumes.
increased cyber security spending, Pandora extended Monday’s rally, Marks and Spencer gained after being
SunTrust argued. It said investors should which followed a better than expected added to Berenberg’s “buy” list.
treat the likelihood of a bid for FireEye as Christmas trading update. It said M&S’s Christmas trading update
“a potential call option” given strategic Danske Bank added the jeweller to its should show “significant improvement”
and private equity interest in the sector. “buy” list, saying the risks of its turnround and saw the recent hire of Tesco clothing
An upgrade to “outperform” helped lift failing had been reduced. director Richard Price as a key positive.
Kellogg. It cited signs that cereal sales in Dassault Aviation retreated after Ocado led the FTSE 100 gainers after
North America were stabilising and saying that, due to a “difficult market”, it UK supermarket industry data suggested
argued that Kellogg’s problems have had delivered 40 Falcon jets last year — its total sales for December rose 11 per
been largely self inflicted, so should one fewer than in 2018 and below the cent in a flat wider market.
benefit from management’s greater company’s target of 45. Premier Oil — the London market’s
commitment to the category. ASML and Infineon climbed as second-most shorted stock with nearly a
Pier 1 Imports sank after the European semiconductor stocks were quarter of its free float on loan — rallied
homewares retailer set out a survival plan helped by better than expected results after the explorer revealed an equity-
requiring the closure of up to nearly half and an upbeat outlook from US sector funded deal to buy a parcel of North Sea
its stores. Bryce Elder peer Microchip Technology. Bryce Elder fields from BP for $625m. Bryce Elder