Number to come

Created Jan 18 2016

Edition Jan 19
Width 96.65 mm
Depth 91.71 mm
Desk

TUESDAY 19 JANUARY 2016 WORLD BUSINESS NEWSPAPERDrawn by ()

EUROPE
Copyright (c) 2016 The Financial Times Ltd. This graphic
will not be released until it has been checked by the desk

Hello hologram So far, so fast A woman’s place

When should a boss turn up in Explaining the rapid fall in markets since The tech industry’s gender
person? — ANDREW HILL, PAGE 10 the start of the year — BIG READ, PAGE 7 failure — MARTHA LANE FOX, PAGE 9

Opec fires warning as Iran surges Briefing

i Insurers commit $1bn to tech push

back into the world’s oil markets

Some of the biggest insurers — including Allianz,
American Family and Ping An — have committed
$1bn to investing in tech start-ups as the industry
seeks to catch up with other parts of the financial
services sector.— PAGE 13; DIGITAL GARAGE, PAGE 18

i Chinese billionaire returns to the office

3 Production boost ordered as sanctions end 3 Brent below $28 for first time in 13 years
NEIL HUME, DAVID SHEPPARD
AND ANJLI RAVAL — LONDON
NAJMEH BOZORGMEHR — TEHRAN
Iran stormed back into the global oil
market yesterday, ordering an immedi-
ate sharp increase in production and
prompting warnings from fellow Opec
members that it risks prolonging the
biggest price crash in a decade.
Brent crude, the international bench-
mark, fell below $28 a barrel for the first
time since 2003, as Iranian tankers
loaded with 50m barrels of crude pre-
pared to set sail following the lifting of
US and EU sanctions.
Marking the end of years of economic
isolation, the head of Iran’s national oil
company ordered an increase in output
of around 500,000 barrels a day, further
straining relations with its regional rival
Saudi Arabia, the biggest oil exporter.
Prices have tumbled by almost 75 per
cent in the past 18 months as the largest
producers have refused to give ground,
with supplies and inventories balloon-
ing to near-record levels.
“If Iran does not increase its oil pro-
duction, neighbouring countries may
increase their production by the next six
months or one year and take Iran’s
share,” Rokneddin Javadi, Iran National
Oil company head, said in Tehran. He
predicted prices would remain mired
below $30 a barrel unless there were “a
logical consensus to manage the oil mar-
ket” — a clear reference to the Saudi-led
policy of keeping the taps open to put
pressure on higher-cost producers.
The price collapse has led to wide-
spread job losses as energy companies
have shelved more than $400bn in
spending plans, while the economies of
producer countries such as Nigeria and
Venezuela have come under severe
strain. Prices are now barely a quarter of
the near-$100 a barrel they averaged
between 2008 to 2014.
The Russian rouble has slumped close
to a record low against the dollar while
even the wealthiest Middle Eastern Gulf
states have started to enact painful cost-
An Iranian saving measures, including reducing
technician subsidies on fuel.
works at the Sanctions on Iran cut its exports from
Balal offshore 2.5m barrels a day in 2011 to a little over
oil platform in 1m b/d, putting straining its economy.
the Gulf in 2004 Tehran has assembled a flotilla of 25
before sanctions supertankers filled with heavier crude
on Tehran were and condensate oil it struggled to sell
escalated amid sanctions and the market glut.
Behrouz Mehri/AFP/Getty
Images
Satellite tracking showed none of the
ships had set sail by yesterday after-
noon, however, confirming Iranian
statements that it would try to avoid
swamping an oversupplied market.
“Iran is not interested in entering the
market in a disorderly manner, which is
self-defeating. However, it is also not
A billionaire fashion-brand founder has returned to
work a week after his company said he had gone
missing, the latest business figure apparently
embroiled in an anti-corruption drive.— PAGE 14
i Hollande push on jobs ‘emergency’
The French president has unveiled a
last-ditch plan to cut persistently high
joblessness and salvage his
re-election chances, declaring an
economic “state of emergency”.—
PAGE 2; EDITORIAL COMMENT, PAGE 8
i Ground war key for Clinton campaign
The ex-secretary of state has come out fighting and
deployed star backers amid Bernie Sanders’ rise but
her phone canvassers, out in force in Des Moines,
highlight an extensive ground game.— PAGE 3
i Dane earns his stripes with Adidas move
The German sportswear group has poached Kasper
Rorsted, the Dane at the helm of consumer goods
company Henkel, ending its year-long hunt for a
new boss and boosting its share price.— PAGE 13
i Tusk breaks ranks over Polish laws
Donald Tusk, the former Polish premier who heads
the European Council, has signalled that it was a
mistake for Brussels to probe whether Warsaw’s
recent legislation violated the rule of law.— PAGE 6
i Alarm raised over stranded refugees
Aid workers and Amman officials have said that
options, and aid money, are running out for about
16,000 Syrian refugees stranded in a remote area of
open, rocky desert on the Jordanian border.— PAGE 4
interested to sacrifice further, to benefit quent contact with Tehran in the past Datawatch
those who gained from its absence,” said year as they sought access to a slice of its
one former Iranian oil official. energy bounty, estimated to comprise
The country faces additional hurdles, the world’s fourth biggest oil reserves. ‘Surplus’ males in China There are
While the price crash has primarily By age group, total males estimated to be
been driven by excess supplies, analysts less total females (millions) 39m more males
than females in
500,000 $100 and investors are also concerned by the 0 to 9 China, some 25m
Increase in output Average price strength of oil demand growth. Signs of 10 to 19
of whom are aged
slowdown in China’s economy have 20 to 29
(barrels per day) of a barrel of oil 30 to 39 under 20. The sex
immediately between 2008 spread fears for global growth. 40 to 49 ratio at birth has
ordered by Iran and 2014 “The price decrease, in short, shows 50 to 59 averaged 117
no signs of ending,” said Philip Verleger, 60 to 69 males per female
even after the lifting of sanctions. US an energy economist. “Globally, secular 70 to 79 since 2000,
80+
banks and financial institutions are still stagnation seems to be taking hold. Oil compared with
prohibited from processing payments use appears to be falling in the United -5 0 5 10 the biological
related to Iranian oil. But European oil States and around the world.” Source: US Census Bureau norm of 105
companies and traders have been in fre- Xi visits Middle East page 4

Greater love has no Deutsche banker

than to lay down bonus for a junior
LAURA NOONAN However, bankers and recruiters have two people familiar with the situation
AND ALISTAIR GRAY — LONDON
told the Financial Times that juniors — a said. One of the people said it was hap-
Deutsche Bank is taking a new term that typically covers bankers with pening “case by case” and was not a for-
approach in the battle to retain junior less than a decade of experience — mal bank policy. The bank declined to
talent: some managing directors are would do better than their bosses in this comment.
WhatsApp and Instagram planning to make small cuts to their year’s bonus season. The large pay gap between managing
upgrade business models own bonuses so they can pay their sub- Paul Sorbera, president of the New directors and their underlings makes
ordinates more. York financial recruiters Alliance Con- this a less painful exercise than it might
Report i PAGE 18 sulting, says banking’s younger genera- look like for managers.
Plummeting trading revenues have hit tion can expect bonus increases of up to The fact that bonuses take up to five
some bankers’ 2015 bonuses hard, par- 10 per cent on a like-for-like basis, a years to be fully paid out, and that as lit-
Austria €3.60 Macedonia Den220 ticularly in Europe, where Credit view echoed by senior bankers in the tle as 30 per cent is paid in cash, also
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 Suisse’s investment bank bonus pool City. makes it easier for senior staff to
Bulgaria
Croatia
Lev7.50
Kn27.50
Netherlands
Nigeria
€3.60
Naira715 will be down more than 30 per cent, “It’s 100 per cent true [that junior weather.
Cyprus
Czech Rep
€3.50
Kc100
Norway
Oman
NKr34
OR1.50 according to bank insiders. bankers will do better],” one of the Lon- US banks do not disclose the bonuses
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 280
Zl 18 Sharp falls are also expected at Deut- don bankers said. He added that the they pay, but total pay and benefits fig-
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15
sche, where new boss John Cryan has competition for junior talent was “phe- ures released by Citi and JPMorgan last
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00
been sceptical of banking’s bonus cul- nomenal” because banks had hired so week show a fall of 9 per cent and 1 per
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
ture, saying he does not understand why few people after the financial crisis. cent respectively. The other big US
India
Italy
Rup195
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
bonuses motivate employees and warn- At Deutsche, managers are so con- banks report results this week, before
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
ing that its third-quarter €6.2bn loss cerned with keeping their teams that European banks start on January 28.
Kuwait KWD1.50 Switzerland SFr5.90 would be “factored in” to payouts. some are forgoing their own bonuses, Bonuses cut for next generation page 14
Latvia €6.99 Tunisia Din7.50
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

Subscribe In print and online World Markets

www.ft.com/subscribetoday
STOCK MARKETS CURRENCIES INTEREST RATES
email: fte.subs@ft.com
Tel: +44 20 7775 6000 Jan 15 prev %chg Jan 18 prev Jan 18 prev price yield chg
Fax: +44 20 7873 3428 S&P 500 1880.33 1921.84 -2.16 $ per € 1.088 1.095 € per $ 0.920 0.913 US Gov 10 yr 101.88 2.04 0.00
Nasdaq Composite 4488.42 4615.00 -2.74 $ per £ 1.427 1.431 £ per $ 0.701 0.699 UK Gov 10 yr 102.72 1.70 0.03
© THE FINANCIAL TIMES LTD 2016 Dow Jones Ind 15988.08 16379.05 -2.39 £ per € 0.762 0.765 € per £ 1.312 1.307 Ger Gov 10 yr 104.96 0.47 0.00
No: 39,064 ★ FTSEurofirst 300 1293.29 1297.10 -0.29 ¥ per $ 117.395 116.865 ¥ per € 127.673 127.990 Jpn Gov 10 yr 100.98 0.20 -0.01
Euro Stoxx 50 2935.26 2952.48 -0.58 ¥ per £ 167.564 167.222 £ index 87.830 88.771 US Gov 30 yr 103.73 2.81 0.00
Printed in London, Liverpool, Glasgow, Dublin,
FTSE 100 5779.92 5804.10 -0.42 € index 87.435 86.647 $ index 106.509 106.865 Ger Gov 2 yr 102.75 -0.34 0.00
Frankfurt, Brussels, Milan, Madrid, New York,
Chicago, San Francisco, Washington DC, Tokyo, FTSE All-Share 3183.92 3202.33 -0.57 SFr per € 1.095 1.094 SFr per £ 1.437 1.429 price prev chg
Hong Kong, Singapore, Seoul, Dubai CAC 40 4189.57 4210.16 -0.49 COMMODITIES Fed Funds Eff 0.24 0.12 0.12
Xetra Dax 9521.85 9545.27 -0.25 Jan 18 prev %chg US 3m Bills 0.25 0.22 0.03
0 3 Nikkei 16955.57 17147.11 -1.12 Oil WTI $ 30.01 30.39 -1.25 Euro Libor 3m -0.15 -0.15 0.00
Hang Seng 19237.45 19520.77 -1.45 Oil Brent $ 28.70 28.94 -0.83 UK 3m 0.59 0.59 0.00
FTSE All World $ 239.57 240.72 -0.48 Gold $ 1089.20 1093.75 -0.42 Prices are latest for edition Data provided by Morningstar

9 770174 736128
2 ★ FINANCIAL TIMES Tuesday 19 January 2016

INTERNATIONAL
GLOBAL INSIGHT
France
ROME

Hollande tacks left in jobs ‘emergency’ James

President eyes poll and
reverts to more familiar
interventionist measures
ANNE-SYLVAINE CHASSANY — PARIS
François Hollande has returned to tra-
ditional leftwing tenets for a last-ditch
plan to cut persistently high unemploy-
ment and salvage his chances of re-elec-
tion next year, saying France is in an
state of emergency to declare,” he
added, referring to the Islamist terror
assaults that struck Paris last year.
After alienating the leftwing of his
party two years ago with tax cuts for
business worth €40bn over three years,
followed by a deregulation push, Mr
Hollande reverted to more familiar
interventionist measures for his latest
jobs plan. With the presidential election
in 15 months, Mr Hollande is desperate
to turn the economy round. The social-
Politi
entering a phase of public spending ‘We have to growth of more than 1 per cent. But the
increases.” pace of the recovery in the eurozone’s
act so that
Yesterday’s announcement follows
the pro-business measures taken two
years ago by the president, which
growth
second-largest economy has not been
enough to absorb the graduates enter-
ing the job market every year. Despite
Renzi turns up heat
included tax breaks over three years for
companies. But the measures have
becomes
more
recovering margins, companies are still
hesitant to hire workers.
on Brussels as Italian
failed to bear fruit.
Since 2012, when Mr Hollande came
to power, more than 600,000 people
robust and
Under yesterday’s announcement,
which takes effect immediately, compa-
nies with fewer than 250 workers will
public opinion shifts
have joined the ranks of the unem-
job creation receive a €2,000 payout for hiring
ployed at a time when joblessness has more youths and unemployed people on low

economic “state of emergency”.
The measures, which the president
detailed in a speech yesterday, involve
the creation of 500,000 vocational
training schemes, additional subsidies
for small companies and a programme
to boost apprenticeships.
“We have to act so that growth
becomes more robust and job creation
more abundant,” Mr Hollande said in an
address to unions and business leaders.
“There is also an economic and social
Britain in Europe
ist leader has promised only to run for a
second term in office if unemployment
starts to fall this year.
Nicolas Lecaussin, head of Institute
for Research in Economic and Fiscal
Issues, a liberal think-tank, described
the new measures as “old recipes”. Mr
Lecaussin added: “Training schemes
are controlled by unions and efforts to
boost apprenticeships have failed
repeatedly over the years. As always
when presidential elections loom, we’re
decreased in most of the other large
European economies.
The jobless rate in France is above 10
per cent compared with a 9.8 per cent
EU average. The rate in the UK is 5.2 per
cent and in Germany 4.2 per cent as of
November 2015. Italy and Spain, hit
harder than France by the financial cri-
sis and the eurozone debt crisis, have
higher jobless rates that have proved
stubborn of late. France emerged from
three years of stagnation last year, with
W
abundant’ salaries for contracts lasting more than
six months. Temporary tax breaks,
announced in 2014, will become perma-
nent, Mr Hollande said.
The government’s poor economic
record helps explain the growing dis-
content with Mr Hollande, whose
approval ratings have fallen after a
shortlived boost following the terror
attacks that killed 130 people in Paris
and Saint-Denis in November.
Editorial Comment page 8
hen Matteo Renzi visited Berlin last July
he delivered a subtle warning to the
assembled crowd at Humboldt University
that a new deal was needed to save Euro-
pean integration.
“A world that is changing so quickly needs a place it can
call home in terms of values, ideals and passion — and that
place is Europe,” the Italian prime minister said, weaving
in references to Sophie Scholl, a symbol of German resist-
ance to the Nazis, and Willy Brandt, the former chancellor.
“We risk wasting it if we hand it over to bureaucrats and
technocrats.”
But the former mayor of Florence has now turned to
more pointed complaints. Mr Renzi has sharply escalated
his confrontational rhetoric towards the European Com-
mission and the German government, triggering surprise
and irritation in Brussels and Berlin.
Italy’s increasingly bitter recriminations span a wide
range of issues, from migration to energy, banking to
budget policy. Mr Renzi feels the EU is either applying its
rules too rigidly or adopting double standards that often
benefit Germany, to the detriment of Italy. “Europe has to
serve all 28 countries, not just one,” he told the FT last
month. Mr Renzi’s attacks on the EU are a reflection of
shifting public opinion in Italy over the past decade.
Whereas Italians used to be among the biggest support-
ers of European integration, years of economic stagnation
and recession have brought disillusion with its outcomes,
particularly when it comes to the euro.
The prime minister, who took office nearly two years
ago, saw his poll numbers
drop substantially over
the course of 2015, with
There are worries
the populist anti-euro that his tougher
Five Star Movement and
the Northern League con-
attitude towards
solidating their positions Europe could
as Italy’s second and third
largest political parties.
invite retaliation
Mr Renzi faces two key
tests this year: municipal elections in some large cities,
including Rome and Milan, and a referendum on constitu-
tional reforms to strip power from the Senate that the pre-
mier has staked his political future on, threatening to
resign if he should lose. But if there is a clear political
imperative in his lurch towards what Italians officials
describe as “Eurocriticism” — Euroscepticism is too
strong, they say — there are also some potential risks.
Under Mr Renzi, Italy has spent much time and effort
trying to maintain and even build on the international
credibility restored to the country by his predecessors,

Norway oil dispute with EU a lesson for Brexit fans
CHRISTIAN OLIVER — BRUSSELS
RICHARD MILNE — OSLO
A persistent dispute between Brussels
and Norway about offshore oil drilling
has highlighted the pressure on even
non-EU members to follow the bloc’s
rules — and offered a cautionary tale as
Britons ready for a referendum on
their EU future.
Norway’s arm’s-length relationship with
the EU — it is not a member of the bloc,
but has full access to the single market —
has drawn the admiration of some Brit-
ish Eurosceptics, who tout it as potential
model for a post-Brexit UK.
But to many Norwegians, their
arrangement is no model at all for a
nation seeking freedom from Brussels’
oversight. Even though they have no
involvement in creating EU regulation
they are still bound to abide by much of
it, as the offshore dispute makes clear.
“It is extremely strange that some in
Britain think about copying Norway: it
is the worst thing that could happen. We
have to obey nearly all regulations,” said
Erik Oddvar Eriksen, director of the
Centre for European Studies at Univer-
sity of Oslo.
Borge Brende, Norway’s foreign minis-
ter, said last year: “Our arrangement . . .
is that we have to implement all the EU
directives. We are not around the table
when these are discussedinBrussels.”
David Cameron, the UK prime minis-
ter, who is expected to fight to keep Brit-
ain in the EU, has derided Norway’s
arrangement with Brussels as “govern-
ment by fax”.
Norway is a deeply Eurosceptic coun-
try, with recent opinion polls showing
three-quarters of the public oppose EU
membership. But it has access to the sin-
gle market through the European Eco-
nomic Area, a wider grouping that also
Cautionary tale: includes Liechtenstein and Iceland.
the dispute over The dispute over offshore safety rules
offshore safety highlights many of the problems of EEA
has left Oslo at membership for Norway as it is obliged
odds with to follow large parts of EU law without
Brussels, but having a big role in their drafting.
unable to affect It emerged in the aftermath of the
policy, causing 2010 Deepwater Horizon disaster in the
David Cameron Gulf of Mexico, as the EU moved to
to dub it tighten its own safety standards.
‘government by Norway, western Europe’s largest oil
fax’ — Kristian Helgesen/ and gas producer, responded that a 2013
Bloomberg
EU directive was not applicable to its
waters. It added that the rules were bur-
densome, unnecessary and could
undermine its own safety standards.
But Brussels has now revived the case,
insisting that Norway should conform
to EU law and implement the new legis-
lation, which covers issues such as oil
companies’ financial readiness for acci-
dents and rights for whistleblowers.
Environmental groups dismiss Oslo’s
legal argument that its offshore activi-
ties fall outside of the EEA agreement.
“Norway should have learnt by now it
can’t cherry-pick the EEA agreement
and would be better off actively contrib-
uting to sound legislation,” said Jonas
Helseth, director at Bellona Europa, a
non-governmental organisation.
“Several incidents in the North Sea in
recent years have shown that scope
remains for improving offshore safety.”
To Prof Eriksen, such cases demon-
strate how Norway is “trapped” — un-
able to join the EU due to public opinion
and unable to leave the EEA due to the
benefits of access to the single market.
“We have seen in Norway what it
means to be ‘out’,” he said.
“Everybody who thinks twice about
this comes to the conclusion: that EU
membership would be best as you will
end up being dominated by the EU any-
way.”
Mario Monti and Enrico Letta, after it had plummeted
under the government of media mogul Silvio Berlusconi.
Mr Renzi believes that by pursuing an aggressive reform
agenda that largely follows Brussels’ recommendations, he
now has enough goodwill in Europe to be more assertive. It
is unclear whether the feeling is mutual.
There are worries his tougher attitude towards Europe
could invite retaliation. The commission still has to deliver
its final verdict on Mr Renzi’s budget for this year, which is
more focused on tax cuts and less on spending discipline
than Brussels would like. Italy would like Brussels to apply
some “flexibility” to its budget rules so it can run slightly
higher deficits and bring down the debt more slowly, but if
tension builds further, Brussels could balk.
When it comes to migration policy, one of Italy’s biggest
fears is that northern EU members try to limit passport-
free travel to a smaller group of countries that excludes
Italy and Greece, making it much harder for refugees to
move north. Meanwhile Italy’s biggest demand — a renego-
tiation of EU rules to drop the requirement that asylum is
sought in the first country of entry — remains up in the air.
Mr Renzi will have judged that the risks of a backlash are
small. He does have a strong hand to play in that he
remains the most pro-European political leader with any
clout left in Italy. This means Brussels and Berlin may be
reluctant to take the fight with Mr Renzi any further, if not
simply to avoid his downfall.
james.politi@ft.com

We Want Your Business Sport scandals

Tennis star Djokovic says he was offered cash to throw match

FT BUSINESS Tuesday, Friday & Saturday Business for Sale, Business Opportunities, Business
Services, Business Wanted, Franchises
Classified Business Advertising:
UK: +44 20 7873 4000 | US: +1 212 641 6500 | ASIA: +852 2905 5554
FINANCIAL TIMES
1 Southwark Bridge,
London SE1 9HL
Subscriptions & Customer service:
Tel: +44 207 775 6000, fte.subs@ft.com,
www.ft.com/subscribetoday
Advertising:
Tel: +44 20 7873 3794 asiaads@ft.com,
emeaads@ft.com
Letters to the editor:
Fax: +44 20 7873 5938,
letters.editor@ft.com
Executive appointments:
Tel: +44 20 7873 4909
www.exec-appointments.com
Published by: The Financial Times Limited, 1 Southwark
Bridge, London SE1 9HL, United Kingdom. Tel: +44 20
7873 3000; Fax: +44 20 7407 5700. Editor: Lionel Barber.
Belgium; BEA Printing sprl, 16 Rue de Bosquet, Nivelles
1400.
Germany; Dogan Media Group, Hurriyet AS Branch
Germany, An der Brucke 20-22, 64546 Morfelden -
Walldorf. Responsible Editor, Lionel Barber. Responsible
for advertising content, Dominic Good.
Italy; Poligrafica Europa, S.r.l, Villasanta (MB), Via Enrico
Mattei 2, Ecocity - Building No.8. Milan.
Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -
Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.
Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.
Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco-
R2, 28880 Meco, Madrid. Legal Deposit Number
(Deposito Legal) M-32596-1995; Publishing Director,
Lionel Barber; Publishing Company, The Financial Times
Limited, registered office as above. Local Representative
office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid.
ISSN 1135-8262..
UAE; Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor
in Chief: Roula Khalaf. Origin of publication, twofour54,
Media Zone, Abu Dhabi.
France; Publishing Director, Dominic Good, 40 Rue La
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
5376 8253; Commission Paritaire N° 0909 C 85347; ISSN
1148-2753.
Turkey; Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24.
©Copyright The Financial Times 2016.
Reproduction of the contents of this newspaper in any
manner is not permitted without the publisher’s prior
consent. ‘Financial Times’ and ‘FT’ are registered trade
marks of The Financial Times Limited.
The Financial Times adheres to a self-regulation regime
under the FT Editorial Code of Practice:
www.ft.com/editorialcode
Reprints are available of any FT article with your
company logo or contact details inserted if required
(minimum order 100 copies).
One-off copyright licences for reproduction of FT articles
are also available.
For both services phone +44 20 7873 4816, or email
syndication@ft.com
JOHN MURRAY BROWN AND ROB MINTO
LONDON
Novak Djokovic, the world number one
men’s tennis player, has detailed how
he was once offered money to throw a
match, as fresh allegations emerged
that top players conspired to fix
matches at Wimbledon and other lead-
ing tournaments.
Speaking at a press conference in Mel-
bourne, where the Australian Open
began yesterday, Djokovic said he “felt
terrible” about the incident in 2007,
when he was still a teenager.
“I was not approached directly. I was
approached through people that were
working with me at that time. Of course,
we threw it away [rejected it] right
away. It didn’t even get to me,” the 28-
year-old Serbian player said.
The match-fixing claims, based on
leaked documents made available to UK
broadcaster the BBC and BuzzFeed, the
news website, involve 16 of the world’s
top 50 players over the past 10 years,
eight of whom were in the draw for this
year’s Australian Open. Their names
have not been revealed.
The claims centre on allegations that
tennis authorities failed to act on a
probe by their own anti-corruption
body, which found evidence of a net-
work of players suspected of fixing
matches. No players in the BBC/Buzz-
Feed allegations have faced sanctions.
Tennis is the latest sport to face cor-
ruption claims after the investigation
into corruption at Fifa, the governing
body of world football, and the IAAF,
which runs athletics. While the Fifa and
athletics scandals centre on the people
running the sports, the tennis allega-
tions are more similar to the spot-fixing
that blighted cricket, which resulted in
lengthy bans for several players.
BuzzFeed analysed 26,000 tennis
matches, and identified suspiciously
large bets, combined with unlikely
results, that raised suspicions of match-
fixing. Technology has played a key
part, both in the use of betting
exchanges and in the process of spotting
alleged fixing.
Richard Ings, a former head of rules
and competition at the Association of
Tennis Professionals, told the BBC: “If
you were going to invent a sport that was
perfect for match fixing that would be
tennis.” However, the concerns were
rejected by the current president of the
ATP, which represents players’ inter-
ests. Chris Kermode told a press confer-
ence in Melbourne it was not true that
allegations of match-fixing were not
taken seriously or investigated.
“The tennis authorities absolutely
reject any suggestion that evidence of
match-fixing has been suppressed for
any reason or isn’t being thoroughly
investigated,” he said. He claimed the
BBC and BuzzFeed reports “mainly
refer to events from about 10 years ago”
but he added: “We will investigate any
new information and we always do.”
First-round winner: Novak Djokovic
on his way to victory yesterday
Roger Federer, the former world
number one, said of the allegations: “I
would like to hear names . . . it’s such
nonsense to answer something that is
pure speculation.” But he added: “You
have to take it super serious.”
The sport established the Tennis
Integrity Unit, its own anti-corruption
body, in the wake of a previous corrup-
tion investigation in 2008. That probe
was triggered by a notorious match
between Nikolay Davydenko, Russia’s
former world number four, and the
Argentine Martin Vassallo Arguello,
which attracted millions of pounds in
highly suspicious betting triggered by
accounts in Moscow. The investigation
cleared both players.
But the files leaked to the BBC and
BuzzFeed reveal Vassallo Arguello had
exchanged 82 text messages at a previ-
ous tournament with the suspected
ringleader of an Italian gambling syndi-
cate that made hundreds of thousands
of pounds betting on his other matches.
The European Sports Security Associ-
ation, which monitors betting on behalf
of bookmakers, last year flagged up
more than 50 suspicious matches to the
Tennis Integrity Unit.
Tuesday 19 January 2016
Ghosts of 2008 haunt Clinton campaign team
Democratic frontrunner sharpens attack on Bernie Sanders in effort to avoid repeat of her Obama setback
COURTNEY WEAVER — DES MOINES, IOWA
Two dozen supporters of Hillary Clinton
sat huddled in a Des Moines field office
surrounded by “Hillary for President”
paraphernalia and Italian food.
One by one the volunteers and field
officials soldiered through their voter
phone lists, calling more than 50 Des
Moines residents each and rattling off
their pitches on why Mrs Clinton was
more electable than her fast-gaining
rival Bernie Sanders, including greater
foreign policy knowledge and more
experience.
Would the voter be willing to vote for
Mrs Clinton at the forthcoming Iowa
caucus they asked. Would they put a
sign for her in their front yard? Did they
need a ride to their local caucus site?
“We don’t want it to slip away like it
did in 2008,” explained Susan Kerss, a
67-year-old Clinton “precinct captain”,
who had increased her volunteer hours
by a third after seeing the unexpected
rise in Mr Sanders’ polling numbers. “To
me, [Bernie Sanders] came out of the
blue,” she said.
With just two weeks to go until the
Iowa caucus, there has been a shift on
the Democratic side of the race, with key
polls showing Vermont senator Mr
Sanders level with Mrs Clinton in some
early voting states. It is a turnround
from just a month ago when Mrs Clinton
was considered the Democrats’ cer-
tainty for the 2016 Democratic presi-
dential nomination.
In a sign of how much is at stake, Mrs
Clinton came out aggressively against
Mr Sanders in Sunday’s fierce Demo-
cratic debate, criticising her opponent’s
proposed universal healthcare pro-
gramme, which she claimed would raise
taxes on the middle class. She also
accused her rival of being too weak on
gun control — another issue likely to res-
onate with the Democratic party’s base.
The sharpening rhetoric comes after a
New York Times/CBS poll that put
Mr Sanders just 7 percentage points
behind Mrs Clinton among Democratic
primary voters across the country,
sharply reducing Mrs Clinton’s 20-point
lead of last month.
★ FINANCIAL TIMES
Poll position: A poll published last week by Quin-
Hillary Clinton nipiac University in Iowa of likely voters
speaks at the gave Mr Sanders a slender lead over Mrs
State Historical Clinton, while a Monmouth University
Museum of Iowa survey gave him a larger advantage in
in Des Moines New Hampshire, which holds its pri-
this month — Aaron mary on February 9.
P Bernstein/Getty Images
Not all the data are bad for the Clinton
campaign. A separate poll released by
the Wall Street Journal and NBC on Sun-
day reported that Mrs Clinton main-
tained a 20-percentage point lead over
Mr Sanders nationally.
But the negative points have been
enough to force the Clinton campaign to
up a gear as concerns build about a
repeat of 2008 when Mrs Clinton was
once again the presumed nominee
INTERNATIONAL
before she was overtaken by Barack
Democratic caucus – Iowa Obama. Nowhere are these concerns
Poll of polls (%) more apparent than in Iowa, which
60 hosts its caucus on February 1 and is the
place where Mrs Clinton had one of her
Clinton worst results of the 2008 primary sea-
50 son. (She finished third in that year’s
caucus, trailing behind both Barack
40 Obama and John Edwards.)
The former secretary of state has tried
to laugh off the 2008 campaign failure.
30 “I’m ba-a-a-ck,” she joked to an Iowa
crowd not long before announcing her
Sanders 2016 presidential candidacy.
20 Yet some young Iowa Democratic vot-
July October 2016
ers complained Mrs Clinton was less
approachable than Mr Sanders, or Mar-
Sources: FT Research; RealClearPolitics
tin O’Malley, the third Democratic can-
3
didate which, analysts say, helps explain
why Mrs Clinton may be struggling to
drum up enthusiasm for her candidacy.
“As an Iowan we’ve had a lot more
access to Bernie than to Hillary. A lot of
her early events were closed private
events,” said Olivia O’Hea, a student at
Drake University in Des Moines.
Ben Verhassel, an undecided Iowa col-
lege student, said he was still wrestling
between “the realist part of [his] brain”
that urged him to vote for Mrs Clinton
and another part of him that is cheering
for Mr Sanders whose campaign he said
felt “special and more authentic”.
“In Iowa you have to campaign in a
sort of grass roots way and get down on
the level of people,” explained Brianna
Steirer, the co-president of the Drake
University college Democrats and a sup-
porter of Mr Sanders. “People in Iowa
are wary of a candidate they can’t
touch” — and Mrs Clinton seemed to be
marked by “a hard shell of professional-
ism”, she added.
The Clinton campaign team has tried
to correct Mrs Clinton’s image among
Iowan millennials by using young celeb-
rities such as the TV star Lena Dunham
and the pop star Katy Perry to campaign
for Mrs Clinton at local Iowa state
events, and by having Mrs Clinton
appear on popular television pro-
grammes such as Saturday Night Live.
Yet in the end Mrs Clinton’s saving
grace in Iowa is likely to be neither Ms
Dunham nor Ms Perry but her cam-
paign’s extensive ground game — on dis-
play recently in its Des Moines field
office. Her campaign is taking pages out
of the Obama campaign’s winning play-
‘We don’t book, focusing on extensive voter data-
bases that are honed to show which vot-
want it to ers are “committed”, “leaning” or
slip away “undecided” and campaigning aggres-
sively on social media.
like it did in Should Mrs Clinton prevail against
2008. To the recent polling travails, it would be a
metaphor for her candidacy, Ms Kerss
me [Bernie said. “[Mrs Clinton] says her mother
Sanders] said: ‘When you get slammed down, you
pick yourself right back up’,” Ms Kerss
came out of explained. “She has been put through a
the blue’ lot of hoops and I think it’s all made her
stronger.”
4 ★
Brazil central bank juggles
tough options on inflation
Policymakers face the risk of political interference if they raise interest rates
SAMANTHA PEARSON — SÃO PAULO
First it was the tomato, then the gas can-
ister; now the lowly onion is being
branded the “villain” of Brazil’s soaring
inflation rate.
Figures this month showed prices of
the staple surged 61 per cent last year
following a poor harvest, adding to pres-
sure on Brazil’s annual inflation rate
that ended 2015 at 10.7 per cent — the
highest level since 2002.
“If you ask me, it’s not the onion that’s
to blame; it’s [President] Dilma [Rouss-
eff],” says Marcos Ferreira, a retired
teacher, shopping with his wife at a
supermarket in São Paulo at the week-
end. “They both make me cry!”
At its rate-setting meeting tomorrow
Brazil’s central bank faces one of its
toughest decisions yet as it struggles to
bring inflation back to the 4.5 per cent
target while the country plunges into its
worst recession in over a century.
While emerging markets worldwide
are reeling from the slowdown in China,
some economists warn that Brazil is also
on the brink of “fiscal dominance”, an
economic scenario where concerns
about a country’s poor finances render
monetary policy ineffective.
If Brazil’s central bank raises the
country’s benchmark Selic rate beyond
the current 14.25 per cent tomorrow, it
will increase the already hefty interest
payments the government owes on its
own debt. As the theory goes, this may
raise fears of a default — a prospect that
would cause currency depreciation,
make imports more expensive, and so
actually fuel inflation.
In one of the most alarming reports on
the issue, analysts at Barclays last week
wrote: “We find evidence that Brazil
may already be suffering from fiscal
dominance and that the central bank’s
inflation targeting framework may have
been compromised.”
However, the alternative facing the
central bank is no better. If governor
Alexandre Tombini does nothing
tomorrow, or even reduces interest
rates, he will probably be accused of suc-
cumbing to political pressure.
Brazil’s central bank is one of the few
in the world that is not formally inde-
pendent from the government. While
the institution generally enjoys opera-
tional autonomy, concerns have grown
about government meddling since Rui
Falcão, president of the ruling Workers’
party, last month publicly called for an
end to higher interest rates.
Analysts fear Ms Rousseff may be
tempted to heed his calls and those of
other anti-austerity groups from the far-
left of her party in exchange for their
support against the motion in Congress
to impeach her.
The resignation of fiscal hawk
Joaquim Levy as finance minister last
month and his replacement with Nelson
Barbosa has only heightened concerns
about a shift to more heterodox policies,
says João Pedro Ribeiro, strategist at
Nomura.
As such, central bank inaction tomor-
row could do just as much harm as rais-
ing rates, undermining Mr Tombini’s
Xi faces diplomatic test in Middle East
Tricky talks await China’s
leader as tension between
Saudi Arabia and Iran rises
CHARLES CLOVER — BEIJING
HEBA SALEH — CAIRO
NAJMEH BOZORGMEHR — TEHRAN
Xi Jinping is due to begin his first presi-
dential visit to the Middle East today in
what promises to be a tricky diplomatic
balancing act between Saudi Arabia and
Iran.
China’s role in the region has been
noticeable for its absence. The last time
a Chinese head of state visited Saudi
Arabia was seven years ago, and there
were rumours this visit would be
scrapped amid new tensions between
Iran and Saudi Arabia following the exe-
cution by Riyadh of Shia cleric Nimr al-
Nimr and Saudi Arabia’s severing of dip-
lomatic ties with Iran after its Tehran
embassy was stormed by a mob.
When he lands in Riyadh, Mr Xi will
have the opportunity to mediate in one
of the world’s most dramatic feuds.
While the timing is unintentional, diplo-
mats say, it will be a test of China’s appe-
tite for regional leadership. Mr Xi will
travel from Saudi Arabia to Egypt and
then Iran, before leaving on Friday.
But Beijing has done its best to tamp
Know one’s onions: a market worker
in Rio de Janeiro carries bags of the
vegetable blamed by some for high
inflation — Dado Galdieri/Bloomberg
Missing the target
Inflation in Brazil (%)
Actual
Target
1999 2005 10 15
Source: Central Bank of Brazil
Presidential visit. Foreign policy
down any talk of Mr Xi making a diplo-
matic breakthrough. The visit “will be a
rare opportunity for China to call for
calm and restraint from both sides”, said
Xinhua, China’s official news service.
Zhang Ming, China’s vice-foreign
minister, deflected a question yesterday
on how Mr Xi would bridge the divide
between Tehran and Riyadh. “Regard-
ing some of the region’s problems, China
has always taken a balanced and just
position,” he said.
China has big economic interests in
the three countries. Saudi Arabia is
China’s largest source of foreign oil,
while Iran has new opportunities for
investment after the lifting of sanctions.
“China does not want to miss out on
cultivating goodwill for new investment
opportunities in the Iranian economy,”
China’s President Xi Jinping hopes
to cultivate goodwill in the region
FINANCIAL TIMES
INTERNATIONAL
credibility among investors and also
fuelling inflation, economists say.
It is a bleak scenario, particularly for
older Brazilians who are still haunted by
the hyperinflation of the 1980s and
early 1990s that wiped out savings and
destroyed livelihoods. In the first dec-
ade of this century, Brazil appeared to
have put its dark past behind it and
entered a new era of prosperity and sta-
bility based on three sacrosanct policies:
inflation targeting, fiscal responsibility
and a floating currency. However, Ms
10
Rousseff’s decision to pump up lending
from 2011 onwards at the expense of the
fiscal deficit, coupled with the end of the
commodities supercycle, has paved the
way for the current crisis.
Brazil’s budget deficit is running at
5 just under 10 per cent with public debt
close to 70 per cent of gross domestic
product and rising fast. While inflation
is far from the highs of the 1990s, the
0
economy’s expected contraction of 3.7
per cent last year and 3 per cent this year
17 rank as the deepest recession since
records began in 1901 and the first back-
to-back years of contraction since
said Zha Daojiong of Peking University.
China has been Iran’s biggest crude
buyer since oil sanctions were imposed
in 2011 and Hassan Rouhani, the Ira-
nian president, said over the weekend
that the Islamic establishment would
not forget “friends who helped us” dur-
ing sanctions.
Majid-Reza Hariri, deputy head of
Iran-China chamber of commerce, said
now that many sanctions were lifted, it
was time to expand relations.“We need
between $30bn to $50bn foreign invest-
ments annually, a big chunk of which
can be secured by China for such sectors
like road, rail and air transportation,
agriculture and industries such as
household, textile and ceramics,” Mr
Hariri said.
Iranian businesses are less enthusias-
tic, however. They say Chinese banks
and businesses penalised them with
high commissions and delays in deliver-
ies when they had no choice but to buy
Chinese products.
Egypt, meanwhile, is counting on Chi-
nese support at a time when its econ-
omy is stumbling as a result of shortages
of foreign currency and repeated terror-
ist attacks that have severely damaged
its crucial tourism industry.
Magdy Amer, Egypt’s ambassador to
China, said in Al-Ahram, the state-run
daily, yesterday that Beijing would sign
the Great Depression of the 1930s.
In his official statements, at least, Mr
Tombini maintains that the central
bank can still play its part by taming
inflation, with most economists expect-
ing the bank to raise the Selic by 50 basis
points tomorrow to 14.75 per cent — its
highest since 2006.
“The bank still has some ability to
influence expectations,” says Silvio
Campos Neto, economist at the Brazil-
ian consultancy Tendências, while other
analysts agree that concerns about fiscal
dominance are valid but premature.
However, for Andre Perfeito, chief
economist of Gradual Investimentos, a
brokerage in São Paulo, Mr Tombini will
raise rates simply because that is what is
expected of him, not because he
believes it will do any good in the cur-
rent crisis.
“The conditions in which Brazil’s cen-
tral bank is operating are very difficult,”
says Mr Perfeito. It is like “trying to fly a
plane with one of its engines down, its
controls disabled and an elephant in the
hold.”
Editorial Comment page 8
a $1bn loan agreement to shore up
Cairo’s foreign currency reserves, and
open a $700m credit line with the
National Bank of Egypt to fund joint
projects. He also said negotiations were
advanced on Chinese investments in
transport, power and construction.
While some believe China may yet
seek to challenge Washington in the vol-
atile region as its global might rises,
those closest to the situation say that —
unlike Asian trouble spots such as the
South China Sea and Taiwan — the Mid-
dle East is one place Beijing is content to
let Washington lead.
“China would never want to replace
the US in the Middle East,” said Wang
Suolao, director of the Centre for Mide-
ast Studies at Peking University’s School
of International Studies.
Jon Alterian, director of the Middle
East programme at the Center for Stra-
tegic and International Studies in Wash-
ington, said China’s strategy was more
about maintaining checks and balances
rather than backing anyone or interfer-
ing in the region’s complex politics.
“They need Iran to avoid overreliance
on Saudi Arabia, and they need Saudi
Arabia to avoid overreliance on Iran. It’s
all about diversifying risk. It’s less about
picking winners and more about mod-
ern portfolio theory.”
Additional reporting by Simeon Kerr
Refugees
Jordan seeks aid to help
Syrians in no man’s land
JOHN REED — AMMAN
Thousands of Syrian refugees desper-
ate to flee the civil war are stranded in a
remote area of open, rocky desert abut-
ting the border with Jordan, with
Amman allowing only a few emergency
cases to enter each day while it looks
for a third country to accept them.
About 16,000 people are camped at two
locations in no man’s land between two
sand berms that mark the border,
according to aid workers and Jordanian
government officials. Their number is
growing as neighbouring countries bar
Syrians from entering, pushing more to
head south.
Jordan’s government says it has secu-
rity concerns about the refugees, some
of whom come from areas controlled by
Isis, and has complained about the over-
all cost of the refugee crisis as donor
pledges fall and humanitarian groups
like the UN World Food Programme cut
back aid handouts.
The financially strapped kingdom,
which has taken in more than 1m Syri-
ans since the war began in 2011, last
week called the area around the berm a
“de facto refugee camp” for the first
time. The admission comes ahead of a
donor conference on Syria due to be
held in London on February 4.
“We hope that the world will step for-
ward and help hosting countries deal
with the refugee issue, because other-
wise they will have to deal with this
problem all over the world — at the
shores of Europe, North America, and
elsewhere,” said Mohammad al-Mom-
ani, Jordan’s government spokesman.
Jordan says that it has received barely
a third of the $3bn it estimates it will
need this year to pay for the cost of the
Syrian crisis, which has put a strain on
its water, electricity and health services
and schools. Amman says it is hosting
1.4m Syrians, many of whom are living
in towns and cities; about 600,000 of
them have registered with the UNHCR,
the UN refugee agency.
“Jordan is now admitting openly that
the situation is there, and it’s a bad situa-
tion,” said Adam Coogle, a researcher
for Human Rights Watch.
The region’s other refugee havens
have gradually shut their doors over the
past year. Lebanon, which is home to
about 2m refugees according to its gov-
ernment, has in effect sealed its borders.
To enter, Syrians must have an embassy
appointment, a flight out of Beirut air-
port or a guarantor — a citizen who takes
responsibility for their residency. But
the vast majority live on less than $2 a
Licensing laws
Ireland publicans want time
called on Good Friday ban
VINCENT BOLAND — DUBLIN
Oliver Hughes is in the bizarre position
of being an entrepreneur in Ireland
forced to shut his business for one day
every Easter by order of the state.
As the owner of the Porterhouse chain of
bars and microbreweries, he must close
his pubs every Good Friday, even as
other retail businesses stay open, the
consequence of an archaic law on the
country’s statute books.
Now Mr Hughes and his fellow publi-
cans have begun a campaign to get the
law changed to allow Irish people and
the thousands of tourists who descend
on Ireland every Easter to buy a pint.
Years of lobbying the government have
yielded promises but no action to
reform a law the industry says costs it
€30m a year in lost revenues.
“Every Good Friday we have thou-
sands of tourists wandering around the
streets of our cities and towns asking
why they can’t go into a pub for a drink,”
says Donall O’Keeffe, chief executive of
the Licensed Vintners Association, the
trade body for Dublin pubs.
The requirement to close on Good Fri-
day — and Christmas Day — dates from
1927. It was introduced by the govern-
ment of the newly independent Irish
Free State to win the support of the
Catholic Church. St Patrick’s Day —
March 17, the Irish national day — was
also included, but that restriction was
lifted in the 1960s.
“It was clearly a completely different
Temple Bar, Dublin: industry says it
loses €30m a year because of ban
Tuesday 19 January 2016
day and cannot afford any of these
options.
Turkey this month tightened entry
requirements for those who can afford
to fly or arrive by sea. Some 400 Syrians
were stranded at Beirut airport when
cancelled flights to Istanbul meant they
missed the chance to land before the
new policy was enforced.
Lebanese officials arranged flights
back to Syria for those trapped at the
airport, a move that was condemned by
rights groups.
Refugees began massing at the berm
— a restricted military area — on Jor-
dan’s border after Amman in mid-2013
closed most informal crossings, leaving
only one near Ruwayshid in its far east.
From mid-2014, it forced most Syrians
to remain north of the berm, according
to Human Rights Watch, and makeshift
tent cities began appearing.
In December, with an estimated
12,000 refugees amassed at the site, the
UNHCR warned that health conditions
were deteriorating, with cases of diar-
Syrian refugees
wait at the border
with Jordan, which
is allowing entry
only to those
deemed vulnerable
rhoea, vomiting and acute malnutrition
among children.
Aid officials say that “tens” of Syrians,
mostly elderly or other vulnerable peo-
ple, have died at the berm, although Jor-
dan’s government says it is unaware of
any deaths. The UNHCR and Interna-
tional Committee of the Red Cross
declined requests to be interviewed
because of the sensitivity of their rela-
tions with the Jordanian government.
But since the UN raised the alarm,
Amman has allowed aid workers to
bring tents and medical services into the
area, and the UNHCR has begun regis-
tering some as refugees.
Jordan says it is blocking the refugees’
entry because many come from areas of
northern and eastern Syria closer to
Turkey and Lebanon. However, it is let-
ting about 50 to 100 “vulnerable” refu-
gees from the camp enter every day.
One humanitarian worker in Amman
described the government’s new open-
ness on the refugees as a “shakedown”
aimed at securing more aid funds.
However, another one sympathetic to
Jordan’s plight said Jordan was doing no
worse than European countries.
Additional reporting by Erika Solomon
in Beirut
world back then — the cultural and
political norms of those days no longer
apply,” Mr O’Keeffe says.
The enforced closure is costly for an
industry that has been battered by Ire-
land’s economic and financial crisis.
Hundreds of family-owned pubs closed
between 2008 and 2012, although the
industry now appears to have stabilised
somewhat.
Mr Hughes points out, though, that
the lost income adds to the overall cost
of running a pub in Ireland. “It’s cheaper
to run a bar in London or New York than
in Dublin,” he says, adding that margins
are higher, and staff and overhead costs
are lower.
‘The cultural and political
norms of those days
no longer apply’
Donall O’Keeffe, LVA chief
Campaigners want to see the law
changed by this Easter, which promises
to be a very special one: it is the cente-
nary celebration of the Easter Rising,
the rebellion by Irish republicans in
Dublin in 1916 that eventually led to
partition and the creation of the Repub-
lic of Ireland.
In addition, there is a friendly soccer
match in Dublin between the Republic
and Switzerland on Good Friday, March
25, ahead of the Euro 2016 champion-
ship in France, for which both the
Republic and Northern Ireland have
qualified.
In another oddity of Irish licensing
laws, those attending the match will be
able to buy alcohol at the stadium — but
not afterwards in the capital’s local
pubs. For incensed publicans, the argu-
ment in favour of opening is a much lib-
ertarian and economic as it is financial.
“People should have the choice to
have a drink on Good Friday, and pubs
should have the right to trade along with
all the other businesses that can do so,”
points out Mr O’Keeffe.
Tuesday 19 January 2016 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 19 January 2016

INTERNATIONAL

Legislative review Human rights

Tusk intervenes in EU dispute with Poland Missing

European Council chief
tells Brussels and Warsaw
to tone down rhetoric
PETER SPIEGEL — BRUSSELS
Donald Tusk, the former Polish prime
minister who heads the European Coun-
cil, broke with the rest of the EU’s lead-
ership yesterday by questioning Brus-
sels’ decision to launch a formal review
into whether Poland’s new media and
judicial legislation violate the rule of
law.
Although Mr Tusk said he believed
the European Commission acted “in
good faith” in opening the inquiry last
week, he cautioned it could exacerbate
an acrimonious relationship between
Brussels and the new ultra-conservative
Law and Justice government in Warsaw.
“I’m not enthusiastic about it,” Mr
Tusk said after meeting Andrzej Duda,
the Polish president. “The commission is
acting in good faith. It wants to clarify
the situation, it does not want to humili-
ate or stigmatise Poland. But . . . this can
be achieved by other methods, not nec-
essarily triggeringthisprocedure.”
Mr Tusk also put Mr Duda and his
allies on notice that they risked under-
mining decades of hard work to return
Poland to the top table in international
affairs. The media and judicial measures
have sparked criticism from national
leaders in Europe and prompted calls for
the Obama administrationtointervene.
“What’s of key importance to Poland
today is to maintain its very strong
[international] reputation, which it has
worked on over the past 25 years,” Mr
Blue-sky thinking. Traffic reduction
Tusk said. “This reputation is the fruit of
work of many governments . . . This rep-
utation has been shaken slightly.”
SincecomingtopowerinOctober,Law
and Justice has introduced laws that crit-
‘The commission is
acting in good faith. But
. . . this can be achieved
by other methods’
ics say undermine democratic norms in
Warsaw, particularly the media law,
which forced the sacking of executives at
state television and radio broadcasters,
and a measure making it more difficult
for the constitutional court to overturn
legislation. Both laws are under scrutiny
in Brussels, a process that could lead to
EU sanctions. The controversy has put
Mr Tusk, who served seven years as
Polish premier atop the centre-right
Civic Platform party, in an awkward
position. Although his EU job means he
represents overall European rather than
Polish interests, he has tried to bridge
differences between Brussels and War-
saw, urging both sides to tone down rhet-
oric.
Mr Tusk noted that the consequences
of “hysterical behaviour” had already
done damage to Poland. After arguing
the Polish economy was in tatters dur-
ing the election campaign, Law and Jus-
tice expressed anger at last week’s deci-
sion by Standard & Poor’s to downgrade
Polish debt. Mr Tusk said the rating
agency had been misled by the cam-
paign “propaganda”.
“This narrative of a catastrophic eco-
nomic situation in Poland could have
led to somebody believing it; it’s impor-
tant that we don’t believe it,” he said.
“However, the latest rating by S&P
proves somebody can believe in this
very negative image of Poland.”
Jaroslaw Kaczynski, the populist Law
and Justice leader who views Mr Tusk as
his primary political rival at home, has
continued to bait his more moderate
adversary after spending years vilifying
him for allegedly selling out Polish inter-
ests.
Mr Kaczynski’s rhetoric has raised
questions about whether Warsaw would
support Mr Tusk for a second term
when his two-and-a-half-year council
tenure ends next year. Mr Duda insisted
Warsaw was happy to have Mr Tusk in
the job and played down any differences
with Law and Justice.
Hong Kong
publisher
appears on
mainland TV
BEN BLAND
SOUTH CHINA CORRESPONDENT
One of five missing Hong Kong publish-
ers who sold books critical of Beijing
has appeared on Chinese state televi-
sion, seemingly confessing to a drink-
driving offence from 12 years ago and
warning against those “engaging in
malicious speculation”.
In the latest twist in a case that has
shaken Hong Kong, Gui Minhai, a Swed-
ish citizen, was also reported by state
news agency Xinhua to have said he did
not want the Swedish government to
intervene because “deep down I still
think of myself as Chinese”.
Confessions by high-profile people
have become more common on Chinese

Hazy outcome for Delhi pollution fight
Two-week crackdown wins
public backing but shows
limits of such schemes
AMY KAZMIN — NEW DELHI
For the past fortnight, Delhi motorists
forfeited their cars on alternate days in a
road-rationing experiment designed to
help clean the notoriously polluted air.
But in spite of widespread compliance
with the scheme and a notable decline in
traffic congestion, the experiment failed
to bring blue skies or clean air to India’s
capital.
That result reflects both the technical
challenge that authorities face in
improving the world’s most polluted air,
but also the strong support among Delhi
residents for tough, sustained action to
tackle a deadly problem that only
recently seeped into the public con-
sciousness.
“It’s a complex problem that will
require a complex set of solutions, but I
think we have to be optimistic,” said
Vikrom Mathur, head of the climate and
development programme at the
Observer Research Foundation, a New
Delhi think-tank.
“Delhi surprised itself to the extent
that people rallied behind odd-even
[the road rationing system], and any
political party will read that as a public
acceptance of drastic measures,” he
said. “Air pollution was never a political
issue before, but it has become one. It
will be high on the government agenda.”
Under the road-rationing experiment
launched by Arvind Kejriwal, Delhi’s
chief minister, cars with odd
number licence plates alter-
nated with vehicles with even
plates between 8am and 8pm.
The trial, which began on Jan-
uary 1 and ended on Friday, cut
the city’s normally heavy traffic,
leading to a drop in travel times on
the unusually unclogged roads,
though the closure of the city’s schools
over the period also helped. Delhi’s
Metro, which carries an average of
2.6m passengers a day, had roughly
100,000 extra daily passengers, while
many Delhi professionals car-shared
to work — or even took public buses —
for the first time in their adult lives.
“The bus was never an option before.
You felt, you heard, you saw, ‘It’s chock-
a-block, it’s a pain, it’s stinky, what-
ever,’ ” says Saurabh Bhasin, a corpo-
Crawling: traffic rate lawyer. “But I took the bus and it
moves through was absolutely easy. When I got to the
New Delhi last bus stop, I asked the guys which bus I
week when should get on to. People were very
congestion was happy to help.”
lighter than But in spite of city residents’ wide-
normal during spread adherence to the rules, there is
the experiment still fierce debate over the actual impact
by Arvind that road-rationing has had on the city’s
Kejriwal, below air, which ranged from “very
Prashanth
Vishwanathan/Bloomberg
unhealthy” to “hazardous” for nearly all
of the past fortnight.
“When pollution levels are so high, a
small change is not seen very clearly,”
said an Indian environmental scientist,
who asked for anonymity owing to the
issue’s sensitivity. “Weather can also
dramatically increase or decrease pollu-
tion levels.”
Air pollution levels during the
scheme’s first week were in fact far
higher than they had been the previ-
ous week, but scientists said that
deteriorating weather conditions
— colder temperatures, less wind,
and greater humidity, which all
prevent pollution from dissipating
— were likely to blame. But environ-
mental activists argue that air-quality
levels would have been even worse dur-
ing the trial period without the road
rationing experiment.
“A lot of people are confused, thinking
it would clean up and fix the air for
ever,” said Anumita Roy Chowdhury,
executive director of New Delhi’s Centre
for Science and Environment. “If it was
so easy, all of the world would be doing
it. This is an emergency action for those
days in a year when for various reasons,
including weather, pollution is building
up.”
Mr Kejriwal’s government has already
declared the scheme a success and said
that it will consider a “second phase”
after a scientific review. India's
Supreme Court has also imposed a green
tax to deter highly polluting trucks.
Yet a new study on Delhi’s air pollu-
tion makes clear that policymakers, so
far fixated on cars and trucks, will have
to look further afield to truly tackle
Delhi’s air.
According to the study, which was
carried out by the Indian Institute of
Technology Kanpur at the behest of
Delhi’s government, road dust is the big-
gest single source of both large and
small particulates in Delhi air. Burning
of solid municipal waste is another big
contributor, as are coal-burning tan-
doori ovens, used by restaurants to bake
Indian breads and meats.
Many of the pollutants poisoning
Delhi’s air also come from beyond its
borders in the adjacent urban sprawl in
the neighbouring states of Uttar
Pradesh, and Haryana, or even farther
afield in the granaries of Punjab, where
‘A lot of farmers burn off agricultural waste.
But analysts say that there is still
people are much that Mr Kejriwal’s city govern-
confused, ment can do to help, including better
road cleaning, waste management and
thinking public transport.
it would “There’s no giant Hoover that you can
turn on to make the air good,” observed
clean up one Delhi-based western foreign diplo-
and fix the mat. “You’ve got to bite the bullet, make
a plan and stick with it. It will take
air for ever’ years.”
state TV. Human rights campaigners
say they are propaganda tools that
deprive people of a fair trial.
Mr Gui is one of two European citizens
among the booksellers who disappeared
between October and January. The case
has sparked concerns that China’s
relentless crackdown on dissent is
spreading to Hong Kong, which was
guaranteed freedom of speech by Bei-
jing when it was handed back by the
British government in 1997.
Lee Bo, a British citizen who is one of
the other missing booksellers, has told
his wife he is “assisting in an investiga-
tion”, although Hong Kong police are
still investigating his disappearance.
There are widespread fears in Hong
Kong that the men were taken by Chi-
nese security forces. The Hong Kong
government has warned that any such
action would be a violation of the “one
country, two system” arrangement by
which China rules the territory.
But it said over the weekend that its
requests for the mainland to explain
what happened to the missing men had
been met with silence. “I am returning
to surrender by personal choice. It has
nothing to do with anyone,” Mr Gui said
on China Central Television, in an inter-
view that was said to be recorded at a
detention centre and was released on
Sunday. “This is a personal responsibil-
ity that I ought to bear.”
Chinese state media alleged that Mr
Gui had fled China after he was given a
two-year suspended sentence in 2004
for drink-driving following a 2003 inci-
dent in which a woman was killed.
Xinhua said he turned himself in last
October because he felt “tortured, psy-
chologically” about the previous case
but his daughter has said previously
that he went missing while in Thailand
at that time.
Chinese police said Mr Gui was
“linked to other crimes and is co-oper-
ating with investigators in the ongoing
probe, without giving any further
details”, according to Xinhua.
It was not possible to reach Mr Gui to
check the validity of these claims.
William Nee, China researcher at
Amnesty International, said the man-
ner of his detention, the disappearance
of the four other booksellers and the
prominent use of the state’s main propa-
ganda vehicles all pointed to a broader
investigation. “Televised confessions
have become almost a staple of criminal
justice under Xi Jinping but under inter-
national law, having to admit your guilt
on national TV opens many questions
about whether you can get a fair trial,”
he said.
Notebook page 8
Lex page 12

Economic policy Trade ties

Kenya to trim budget deficit as buffer against market turmoil
JOHN AGLIONBY — NAIROBI
The Kenyan government plans to cut
spending by 1 per cent of gross domes-
tic product in the next six months as it
seeks to rein in its ballooning budget
deficit and create “buffers” to counter
emerging market turbulence.
East Africa’s largest economy, a net oil
importer, has suffered less than many
on the continent, notably South Africa
and Nigeria, from tumbling commodity
prices and China’s faltering economy. Its
currency has stabilised this year after
falling 11 per cent last year.
But Henry Rotich, finance minister,
has said he is looking to slice up to
Ks60bn ($590m) from the budget for
the year ending in June when he
presents a supplementary budget next
month. Kenya’s GDP is about $60bn.
“As we go into the medium term [we
need] to create some buffers, some fis-
cal space because we are now living in a
world where there is a lot of vulnerabil-
ity,” he said, adding that most of the cuts
would be in recurrent expenditure.
“Development projects where most of
the jobs are created will not be heavily
affected, apart from those that are
delayed.”
Such projects are centred on building
a $3.2bn, 600km railway from Mom-
basa to Nairobi and on to Naivasha.
Kenya’s decision to cut its budget mir-
rors that of South Africa, which is also
trying to reduce public sector spending.
Ghana, with help from the IMF, is seek-
ing to cut its budget deficit. In contrast,
Nigeria is to increase spending to boost
growth while leaders in Uganda and
Zambia, which both face elections this
year, are also lifting spending.
Investors would welcome a Ks60bn
spending cut, the equivalent of 10 per
cent of recurrent expenditure, analysts
say, particularly since the budget deficit
has expanded from 2 per cent a decade
ago to about 8 per cent now.
“The Kenyan government has had a
bit of a spending problem for some
time,” said John Ashbourne, of Capital
Economics in London. “The economy
has not accelerated as much as the gov-
ernment expected a few years ago.”
Last October interest rates on Treas-
ury bills soared from 9 per cent to 23 per
cent as investors worried the govern-
ment was struggling to service its debt.
The government secured a syndicated
loan, and calmed the markets with help
from the central bank, and Treasury bill
rates have now returned to 10 per cent.
Henry Rotich: the
finance minister is
seeking to curb
spending as well
as boost Kenya’s
productivity
But Apurva Sanghi, the World Bank’s
lead Kenya economist, said Mr Rotich
should look to boost revenues by
expanding the corporate and individual
tax base. “My team estimated that the
government loses 2.6 per cent of GDP in
terms of forgone revenues because of
misaligned tax incentives,” he said.
Kenya missed its revenue target by
almost10percent,orKs28bn,inthefirst
quarter of the current financial year, the
state revenue authority said. Mr Rotich
acknowledged that growth, which is
expected to be about 5.7 per cent in 2015,
was at least two percentage points lower
than it needed to be to create enough
jobsforallenteringthelabourmarket.
He was looking to boost productivity
by revising labour laws and enhancing
the business environment, he said.
“Reaching 10 [per cent growth] is ach-
ievable but we need to improve the busi-
ness environment, get changes in the
legal environment, the labour sector,” he
added. “Agricultural productivity is an
area [of] priority . . . we’re trying to do
mechanisation, drive the youth into that
sector. If you put that all together the
extra4percentcanhappen.”
Kwame Owino, the chief executive of
Kenya’s Institute of Economic Affairs,
said he thought that the economy was
still fragile despite a recent rise in agri-
culture and tourism revenues, two key
sources of foreign exchange.
No time to panic page 7
Editorial Comment page 8
South Korea upbeat on China outlook
CHRISTIAN SHEPHERD — BEIJING
SIMON MUNDY — SEOUL
South Korea has voiced confidence in
China’s economic outlook, with the
new finance minister saying he does
not expect any serious adverse impact
on his country, which depends heavily
on Chinese trade.
Yoo Il-ho’s comments come as the world
awaits China’s official 2015 economic
growth figures today, amid jitters about
the extent of the country’s slowdown.
“We would all agree that the Chinese
economy is in the process of slowing
down,” Mr Yoo, who took office this
month having served as a lawmaker for
the ruling New Frontier party, said. But
he endorsed Beijing’s predictions of a
“soft landing”, saying Seoul expected
China’s economy to grow between 6 per
cent and 7 per cent this year.
Last year, South Korea’s sales to China
fell 5.6 per cent, dragging on national
growth, after surging for years to about a
quarter of total exports. Hyundai Motor
suffered a drop in sales as China’s car
market slowed, while steelmaker Posco
had its first annual loss amid falling
activity inChina’sconstruction sector.
Mr Yoo said South Korea was trying to
develop other export markets to com-
pensate for the fall in Chinese demand.
But he added: “We believe the funda-
mentals of the Chinese economy are
quite stable.
“If you look at China’s balance of
trade, there is a very healthy sur-
plus . . . we do not believe there is a
severe risk for the Korean economy.”
The finance minister was in Beijing to
speak on behalf of all Asian members at
the launch of the China-driven Asian
Infrastructure Investment Bank, in
which South Korea is the fifth-biggest
shareholder with a 3.8 per cent stake —
an indication of its increasingly close
relationship with Beijing under Seoul’s
President Park Geun-hye.
When it announced its participation
in the AIIB last year, Seoul highlighted
the opportunities it would bring for
South Korean companies to work on
infrastructure projects.
Tuesday 19 January 2016 ★ FINANCIAL TIMES 7

FT BIG READ. MARKETS

Global markets have lost over $4tn of value this year, with many bourses suffering their worst start ever.
While investors discount the risk of a recession, they also see few catalysts for shares to move up.
By Dan McCrum, Robin Wigglesworth and Jennifer Hughes

High anxiety
I
t was morning in early September “It’s been very fashionable to equate
and senior investors at Carmignac, financial turbulence with a global reces-
the French fund manager, were sion around the corner, but I don’t think
engaged in a debate that they had that’s correct.”.
been having for months: just how Still, the direction for China is just one
fragile was the world economy? Now, of the larger issues facing investors.
digesting the impact of an August deci- “The level of uncertainty visible in mar-
sion by the Chinese authorities to let the kets can be traced to two sources: China
value of the renminbi drop only slightly, and oil,” says Craig Botham, emerging
it was finally time to act. markets economist at Schroders. “And
Carmignac’s €25bn flagship fund Pat- both have been extremely difficult for
rimoine held €10bn in equities and the investors to call, which is why no one is
decision was taken to buy insurance sure what the end point of this is.”
against the whole portfolio. They would Following the decision of western
effectively pull out of the stock market authorities to lift a number of sanctions
and wait to see what happened. against Iran, global oil prices fell to a 12-
After a vicious sell-off, markets recov- year low yesterday, putting further
ered their poise and in December the US pressure on developing economies that
Federal Reserve was sufficiently confi- rely on exporting commodities.
dent about the outlook to raise interest “We’re seeing lower capital spending
rates for the first time in almost a dec- in emerging markets and high yield
ade. But in recent weeks, Carmignac’s credit weakness in the US yet we’re not
decision has looked like the right call: seeing the consumer boost that low oil
January has been a disaster for stock prices might provide,” says Mr Botham,
markets, which have never fallen so far who sees in market movements “a lot of
or so fast at the start of a year. worry about the weakness of the global
“Our interpretation of the Chinese trade recovery”.
accident was that this is the canary in A Shanghai bridge displays the Indeed, Standard & Poor’s counted
the coal mine, that this is the first mate- latest falls on China’s markets in 112 corporate bond defaults last year,
rial impact of the end of quantitative early January — STR/AFP/Getty Images the most since 2009. Stress at indebted
easing,” says Didier Saint-Georges, companies also rose significantly in the
strategist for the French asset manager. past six months, with the biggest
Global stock markets have lost over increase in the proportion of companies
$4tn of value already this year. The Dollar’s strength is emerging markets’ pain Where China goes the world follows judged to be at risk of a downgrade to
fears about China’s economic slowdown Dollar’s strength is emerging markets’ pain Where China goes the world follows their credit rating in six years.
and depreciating currency have erupted Currencies Stock markets The US stock market is also said to
into near-panic. Bond markets have
Dollar’s strength is emerging markets’ pain
Currencies
Where China goes the world follows
Stock markets have narrowed, a sign of a market run-
Indices rebased Indices rebased
been whiplashed by the conflicting Indices rebased ning out of momentum after years of
forces of central banks selling reserves
Indices rebased
Currencies Dollar index Stock markets 100 upward movement. Large gains for a
110
to support their currencies and inves- Dollar index
Indices rebased 110 Indices rebased 100 small number of very big and popular
tors rushing for safety. 98 companies last year supported the S&P
Dollar index
Chinese stocks in Shanghai and Shen- 110 100
98 500 index, but this year the so-called
100 96
zhen have lost a fifth of their value in the 98 Fangs — Facebook, Amazon, Netflix and
100 96
first two weeks of January. Benchmark 94 Google — have plunged.
indices in Japan and Europe and the US 100 FTSE 100 96
94 Indeed, equities, corporate debt and
92
have fallen by as much as 10 per cent. 90 S&P
FTSE500
100 government bonds are all pricing in a 50
94
92 per cent chance of a recession this year,
JP Morgan Emerging 90 Dax
S&P 500 90
‘China is a Shakespearean Market Currency
JP Morgan index
Emerging 90
FTSE 100
Shanghai
Dax 500 Composite
S&P
92
90
88
according to Jan Loeys, a senior strate-
gist at JPMorgan, who argues sentiment
tragedy. You know what Market Currency index
JP Morgan Emerging
80
80
Shanghai Composite
4 Dax 5 6 7 8 11 12 13 14 15 18 90
88 has become too pessimistic and
detached from the reality of economic
happens in the end, it’s a Jan
Jan
Market Currency
2015 index
2015
Jan 16
Jan 80
16
4 Shanghai
5 Composite
6 7 8 Jan 11
2016 12 13 14 15 18 88
data.
Jan 2016
question of how many Countries
Jan face a growing
2015 debt burden Jan 16
4 5
Big companies hit
6 7 8 11
by aJanbad
12 13
2016start to
the year
14 15 18 “If we are indeed in the last inning of
the US expansion and within half a year
acts it takes to get there’ Countries face a growing debt burden Big companies hit by a bad start to the year of recession, then the current sell-off of
Debt*
Countries face a growing debt burden Share prices
Big companies hit by a bad start to the year
Commodity prices have tumbled down-
wards, with oil selling for less than $28 a
Debt*
As % of GDP 2000 2015 Share
Year prices
to date (%) ‘If we are indeed in the
barrel, a price last seen in 2004. As % of GDP
Debt* 0 100
2000
200
2015
300 400 500
Year to date
Share prices (%) last inning of the US
A spiral of pessimism is developing,
with prominent strategists and inves-
As % of GDP
US
0 100 2000
200 2015
300 400 500 Year to date (%) expansion, then the sell-
tors telling clients to pull out of stocks
and head for the safety of government
US 0 100 200 300 400 500 off makes sense. But that
Japan
bonds. Alongside worries about slowing US
Japan
-7.7 -8.7 -13.3 -17.3 is not our view’
growth in China, investors are con- Greece -7.7 -8.7 -13.3 -17.3
cerned about weakening US corporate Japan
-8.7 risk markets makes sense. But that
profits, the health of mining groups and
Greece -7.7 -13.3 -17.3 development is not our view,” he wrote
Spain
energy companies that took on debts Greece in a report this weekend.
Spain
when prices for raw materials were far China A procession of good economic data,
higher, and the consequences of collaps- Spain
China
-17.5 -17.9 -19.7 including employment figures for the
ing energy prices. * Public and private -17.5 -17.9 -19.7 US economy due on February 5, could
China start to restore confidence among inves-
On a mission * Public and private -17.5 -17.9 -19.7 tors. That is echoed by Jan Hatzius of
So US investors will return on Tuesday Momentum stocks show signs of stalling
* Public and private No panic yet despite market sell-off Goldman Sachs, who highlights the
after a long weekend looking for the Momentum stocks show signs of stalling No panic yet despite market sell-off weak links between China and the US
answer to a question: what can restore Nasdaq biotech stocks versus the Fangs US stock market volatility and Europe. He estimates that even a 10
confidence, not just to China but to the Momentum stocks show signs of stalling
Nasdaq biotech stocks versus the Fangs
No panic yet despite market sell-off
US stock market volatility per cent Chinese import collapse would
Indices rebased Vix index
rest of the world? only shave 0.1 percentage points off the
At stake is the credibility of policy- Indices rebased
Nasdaq biotech stocks versus the Fangs US stock market volatility
Vix index developed world’s gross domestic prod-
180 80
makers around the globe, in particular Indices rebased 180 Vix index 80 uct directly.
the Fed, which last month raised over- 160
night borrowing costs for the first time 180 60
80 Data boost
Fangs 160
in a decade. Accompanying this month’s 140 60 Even in Mr Hatzius’s more adverse sce-
Fangs 160
market turmoil has been a broad 140 40
60 narios, where Chinese growth slows
strengthening of the US dollar, effec- Fangs 120 40 sharply from Goldman’s already pessi-
tively tightening financial conditions 140
120 mistic 5 per cent current estimate — well
20
40
and hurting domestic industry forced to 100 below the official forecast of about 7 per
compete with cheaper imports. 120 20 cent — the global impact is painful but
Nasdaq Biotech index 100
Notably, the US central bank delayed 80 0
20 manageable, and far from enough to
Nasdaq Biotech index 100
a widely expected borrowing shift last Jan 2015 Jan 1680 2008 09 10 11 12 13 14 15 16 0 plunge the world into a new recession.
September after the market turmoil Fang (Facebook, Amazon, Netflix and Google)Nasdaq
Jan
Biotech index
equal weight
2015 index Jan 1680 2008 09 10 Sources:
11 Thomson
12 Reuters Datastream;
13 Thomson
14 Reuters;
15 Carmignac
16 0 After a difficult first 10 trading days of
triggered by China’s surprise devalua- Fang (Facebook, Amazon, Netflix and Google) equal weight index Sources: Thomson Reuters Datastream; Thomson Reuters; Carmignac the year, this is perhaps the most
tion of the renminbi. Bond market Jan 2015 Jan 16 2008 09 10 11 12 13 14 15 16 favourable outcome for investors: one
prices imply diminishing expectations Fang (Facebook, Amazon, Netflix and Google) equal weight index Sources: Thomson Reuters Datastream; Thomson Reuters; Carmignac in which the problems they see do not
of further US rate increases this year, disappear but are at least contained.
while the American economy so far has that policymakers have exhausted the breakers”, which imposed trading halts will be loath to introduce anything radi- In this scenario, commodity prices are
yet to see a boost in consumer spending tools available to them. on plunging stock markets this month. cal before the meeting of G20 central a reflection of excessive boom-time
from the dramatic drop in oil prices. Some argue market turbulence will “What announcement can they bank governors in mid-February. China investment by the industries that mine
“The Fed will find it much more diffi- force the authorities in China to pull make? They’ve made a lot of them is the host of this year’s meeting and has and pump them, rather than a slump in
cult to raise rates now, with equities together a package of stimulus meas- already,” asks Xingdong Chen, chief a record of suppressing market volatil- global demand. Dollar strength is a sign
down 8 per cent this year, oil making ures before the Chinese new year on China economist at BNP Paribas. “Cut- ity in the lead-up to events where it will of US recovery. Low global interest rates
new lows, and concerns increasing that February 8, when markets close for at ting reserve ratios doesn’t seem to be be in the spotlight. will ultimately spur a steady recovery in
inflation will take even longer to reach least three days and business slows working in the way that they’d want. economic activity. And China’s pains
the 2 per cent target,’’ says Arthur Bass, down. Can they say they’re using a speculative Looking for the end point reflect the transition from a rapidly
managing director at Coex Partners. Yet the concern is that a viable pack- vehicle in the stock market? That In the absence of action, investors in the industrialising nation to a society whose
The challenge facing policymakers is age of measures needs more time to be received criticism last year.” rest of the world may be tempted to take economy is driven by services and
that investors continue their exit from put together, with China’s credibility Attempts to manage the renminbi a lead from the Chinese stock markets. domestic consumption.
commodities, shares and corporate already dented by its apparent hasty have only added to concerns. The Peo- But there is a stark difference between a Winter sale The first month of 2016 It is possible that markets signal a
bonds, spurring a stampede that hurts actions: from forced stock-buying by ple’s Bank of China has continued to banking crisis, such as that which has been a disaster for markets, which very difficult year for investors and cri-
confidence among companies and con- the so-called “national team” last sum- spend foreign currency reserves to pro- threatened the US financial system in have never fallen so far in January sis-stretched policymakers without
sumers. After the financial crisis, cen- mer to the abandonment of “circuit tect the renminbi, and intervened in 2008, and a mere economic slowdown. implying imminent disaster.
tral banks took exceptional measures to markets to narrow the gap between the George Magnus, associate at Oxford Stepping in Moves to shore up the “China is a bit like a Shakespearean
stimulate their economies, but growth offshore exchange rate and the onshore university’s China Centre and a senior renminbi, including a currency basket, tragedy,” says Mr Magnus. “You know
has been disappointing. $48 $29 rate it controls. economic adviser to UBS, argues a Chi- added to concerns on China’s markets what happens in the end, it’s just a ques-
The Fed is supposed to have closed the Priceofabarrel Priceofabarrel For now, hopes for a confidence boost nese economy growing at 3 or 4 per cent tion of how many acts it takes to get
door on the post-crisis era, but with ofBrentcrudeon ofBrentcrudea from Beijing in the near term may be a year, while far slower than seen in the Investors blink first The pessimism of there.”
interest rates still close to zero and scant January18,2015 yearlater misplaced, as many seasoned China past decade, would not be a problem for the markets stands in contrast with a Additional reporting by Michael Mac-
prospect of fiscal stimulus, the worry is watchers say that authorities in Beijing the rest of the world. better outlook for the global economy Kenzie and Elaine Moore
8 ★
TUESDAY 19 JANUARY 2016
A missed opportunity to
fix France’s jobs market
The political cost of tackling labour reform is rising by the year
François Hollande has declared France
to be in an economic state of emer-
gency, calling its stubbornly high
unemployment rate as big a challenge
as terrorism. His latest proposals to
boost job creation, however, follow old
formulas that have failed in the past to
enliven a sclerotic labour market. They
fall far short of what is required to put
the country on a war footing.
The two-year plan announced yes-
terday will channel €2bn of public
money, financed by spending cuts else-
where, to boost apprenticeships,
expand vocational training schemes
and subsidise small companies to hire
young people and the unemployed.
There will also be a cap on payouts for
unfair dismissals, which employers
have long called for.
The measures may serve Mr Hol-
lande’s immediate political ends. The
president has repeatedly pledged that
he will run for re-election in 2017 only
if he has made significant progress in
cutting unemployment — which has
risen to an 18-year high. A rapid expan-
sion of vocational training will cer-
tainly make the numbers look better;
and should allow Mr Hollande to claim
he has delivered on his promise.
The plan, focused as it is on state sup-
port rather than more controversial
reforms, will also help Mr Hollande
unify factions on the left and win back
some working class voters who
defected to the National Front in recent
regional elections.
However, it does nothing to tackle
the longstanding structural problems
that have held back the French econ-
omy. These include the high cost of
labour; the tortuous and at times theat-
rical state of labour relations; and the
inequity of a two-tier system in which
longstanding employees on so-called
permanent contracts enjoy too many
protections, while new entrants to the
labour market — who are dispropor-
The limits for emerging
economy central banks
Becoming a market-maker of last resort is not an option for most
Financial assets across the world have
taken a beating since the start of the
year. Policymakers in emerging mar-
kets already know the feeling. Since the
long boom in middle-income econo-
mies came to an end two or three years
ago and waves of turbulence rocked
their asset markets, central banks and
finance ministries have been trying to
work out what to do.
Investors still too often treat emerg-
ing economies as though they were an
undifferentiated mass. In reality some
have more options than others,
depending on how policymakers pre-
pared for the inevitable tightening of
external financial conditions.
One of the more original contribu-
tions to the debate arrived this week
from Agustín Carstens, the well-
regarded governor of the Banco de
Mexico. He suggested central banks
look to intervene in bond markets to
prevent a credit crunch. The with-
drawal of foreign capital has starved
many emerging market sovereign debt
markets of a ready supply of buyers.
Mr Carstens stopped short of advo-
cating full-blown quantitative easing
on the model of the US Federal Reserve
and other developed economy central
banks. Instead, he suggested that cen-
tral banks could swap long-dated
bonds for short-dated, thus easing
liquidity problems further down the
yield curve and in effect acting as a
market-maker of last resort.
For a relatively stable, functioning
economy like Mexico, such a move may
make sense, though it carries substan-
tial risks. Mr Carstens accepted that it
would be a policy to which he would
turn only reluctantly.
For the more typical emerging mar-
ket where the fiscal solvency of the gov-
ernment is doubtful, the dangers of
such a policy almost certainly outweigh
the benefits. The problem arises from
the aftermath of the flood of capital
tionately likely to be young, female or
immigrant — struggle to gain a foot-
hold.
To be fair, Mr Hollande did address
these problems in the reforms he
advanced earlier in his presidency. A
pledge to cut corporate taxes by €40bn
recognised the issue of high labour
costs. Employers and unions backed
some changes to ease labour relations.
The reforms led by Emmanuel Macron,
the combative economy minister,
broke taboos over Sunday trading and
the opening of closed professions.
Mr Macron is working on a new set of
liberalising reforms — seeking to break
down barriers to occupations ranging
from hairdressing to bakeries. It is
encouraging that Mr Hollande gave
these efforts his public backing.
However, these are incremental
moves that will not raise France’s eco-
nomic growth rate far enough to create
jobs for the new cohorts of young peo-
ple entering the job market each year.
A reform of the labour code — the last
big piece of legislation expected before
the presidential elections — should be
an opportunity to make more funda-
mental changes. It is disappointing that
Mr Hollande has already significantly
limited its scope: promising not to
touch the sacrosanct 35-hour work
week or the permanent contracts most
in need of reform.
His reticence is understandable: no
president can be expected to propose
radical and controversial changes at
this stage in the electoral cycle. More-
over, he faces a huge demand for tradi-
tional statist economic policies from
longstanding socialist voters who have
drifted towards the far right.
The need for France to embrace eco-
nomic reform increases by the year; so
have its political costs. Mr Hollande is
running out of time. If he truly believes
that France faces an economic emer-
gency, he will have to be bolder.
into emerging markets during the
boom that followed the global financial
crisis. The inflow was aided, ironically
enough, by the QE practised by the Fed,
which sent money around the world
searching for higher yields. While
emerging market governments often
avoided racking up big debts them-
selves, many of their corporates went
on a dollar-denominated borrowing
spree that left economies vulnerable to
currency depreciation.
In this context, undertaking a policy
that is likely to be seen as monetary
loosening while the Fed is tightening is
fraught with the danger of encouraging
further devaluation, making the debt
problem worse. This is particularly
true for those economies like Brazil
and South Africa, where high inflation
and fiscal laxity have driven down their
currencies and questioned the sol-
vency of the government, let alone
their corporates.
Ultimately, the credibility of mone-
tary policy needs fiscal solidity as a
backstop. The policy outlined by Mr
Carstens makes sense only if it involves
tiding markets over a bad patch that
policymakers, and investors, can safely
regard as temporary. That is not, sadly,
the position in which many emerging
markets find themselves.
It is hard to think of more than a
small handful of countries where the
idea of the central bank being market-
maker of last resort is both practicable
and reasonably safe. Emerging mar-
kets rode out the global financial crisis
in 2008 and 2009 quite well relative to
developed economies. They are
unlikely to do so again this time.
Mr Carstens’s idea is an interesting
intervention in the debate about the
function of central banks in the emerg-
ing markets. Unfortunately, with the
exception of himself, there appear to be
few central bank governors for whom it
is a wise proposition.
FINANCIAL TIMES
Devastating unforeseen consequences of the oil price slump
Sir, Your editorial “A welcome drop in
the price of crude oil”(January 16) on
the benefits of lower oil prices is short-
sighted and neglects the fact that the
crash has significant long-term
negative consequences.
Global oil demand increased by
1.8m barrels a day in 2015 as lower
prices stimulated demand. Once
again Americans are buying gas-
guzzling sport utility vehicles in large
numbers, with light trucks now
making up 58 per cent of vehicle
sales in 2015, from below 50 per cent in
the 2009-12 period. Americans also
drove 3.5 per cent more miles in 2015
from 2014, assisted by lower pump
prices.
SUV sales are also surging in China,
Shipping market is
more about the hog cycle
than the trade cycle
Sir, Regarding Gillian Tett’s article on
the shipping market and global trade
(“Globalisation moves in mysterious
ways”, January 15): it is a common
fallacy to exaggerate the correlation
between the Baltic Dry Index and the
world economy. But to do so is to
ignore the fact that the tanker market,
which is almost as large in deadweight
terms as dry cargo, is currently trading
at multiyear highs.
Ms Tett also seems to blur the
distinction between dry cargo and
container shipping. The two activities
are very different and driven by only
tenuously connected dynamics.
She is right that the poor state of the
container ship market is partly a
reflection of slower world trade. But
the principal culprit for this is slack
demand from Europe for Asian
manufactured goods.
In contrast, the dry cargo market is
driven mostly by Chinese demand for
iron ore. From 2000 to 2013 China’s
construction boom added roughly the
equivalent of another Germany to
global steel production every year. The
resulting increase in demand for raw
materials drove capesize bulk carrier
rates above $300,000 daily in 2008. It
is the levelling off in iron ore demand
from China that is the main reason for
the collapse in capesize rates to around
$3,000 per day.
One thing these three markets do
have in common is that they are all
prone to bouts of massive over-
ordering. As a long-term observer of
the shipping market, I have been
forced to the conclusion that it has
more to do with the hog cycle than the
trade cycle.
Philip Milner-Barry
Rodskog Shipbrokers,
Hong Kong
CCS is the litmus test on
climate change ambitions
Sir, Your report “Carbon capture at risk
of running out of steam” (Innovation in
Energy Special Report, January 18)
makes much of the need for a greater
focus on industrial applications rather
than on power plants. The use of
carbon capture and storage
technologies in industry is an
important and under-researched area.
On one hand, the biggest cost savings
from pursuing CCS technologies comes
from its application to energy-intensive
One little boy’s
journey from a
Chinese street to
Seattle and back
Shanghai
Notebook
by Patti Waldmeir
Letters
and increased 58 per cent year on year
there. The market share of SUV sales in
total car sales in China has now
climbed from 13 per cent to 27 per cent
in the past two years.
The collapse in oil prices has also
had a devastating human cost, with
Swift Worldwide estimating that
233,000 jobs were eliminated in the
sector in the first 11 months of 2015.
Oilfield jobs have traditionally paid
well and provided thousands of highly
skilled engineers, geologists and IT
graduates with a solid middle class
standard of living.
The widespread lay-offs in the sector
seem behind the tragic 30 per cent
spike in suicides in Alberta in the first
six months of 2015, and a 19 per cent
‘Terrible news — we’ve discovered
more oil’
industries such as chemicals, steel and
cement, and there is a potentially
compelling political narrative for how
CCS might play a critical role in
greening traditionally “dirty” industrial
clusters, many of which are currently
facing difficult times. The dilemma is
that, whereas government could more
easily impose some costs on the power
industry since its assets are highly
immobile, most energy-intensive
sectors are also highly exposed to trade
and so can effectively threaten to leave
if government seeks to impose
additional costs. Government seems
unable to tackle the “easier” power
sector where they could (at least
hypothetically) threaten to regulate.
If government has been failing the
test on power sector CCS (which might
be seen as a litmus test on its overall
level of ambition on climate change), it
takes an optimist to believe that it will
rise to the challenge on industrial CCS,
which will give rise to greater not lesser
calls for subsidy.
Dr David Reiner
Judge Business School,
University of Cambridge, UK
High jinks frowned upon
in the medical world too
Sir, Lucy Kellaway, in “Office pranks
are no laughing matter to young
workers” (January 11) laments the
demise of the office prank. High jinks
in medicine, too, have been relegated
to the rubbish bin. Human resources
departments in hospitals take a dim
view of such frivolities: assessment of
junior doctors now include numerous
“character assessments”.
“Hello kind people! When you see this
child, you will doubtless criticise the
parents for being immoral. But we
have no way out — please help us, we
don’t know what to do.”
Thus begins that very rare thing: a
letter from a father, forced to abandon
his disabled infant on the streets of
Ningbo — a city near Shanghai that is
one of the richest in China —
explaining why he did it. And, no, he
had not lost a packet in the stock
market slump that has rattled the rest
of the world. The financial calamity
that befell this father was to bear two
sons, both of them deaf. Raising one
son had taught him how hard it is to
care for a disabled child, even today,
in the age of the Chinese dream.
Raising a second deaf child was simply
out of the question.
So the father abandoned his six-
week-old son — for his own good. And,
remarkably, he felt moved to explain
his reasons. “We don’t own a house, or
even a place to live. I thought I could
make life gradually better by being
diligent: but God has had no mercy on
us,” the father wrote in May 2012. “In
2004 my wife gave birth to a boy, but
when he was two years old we found
he couldn’t hear or talk.”
The family could not afford proper
treatment so by the age of nine the
child was still mute. “This year we had
another child — but God is so unfair,
he has the same condition as my elder
boy,” the father wrote. “We beg you to
save this poor thing.”
So far, so sad. But this is not a sob
story. It is the tale of Bennett Sano,
spike in neighbouring Saskatchewan in
the same period.
The impact is disproportionately
felt in certain areas. The UK as a whole
saw 0.7 per cent growth in the third
quarter of 2015, but Scotland grew only
0.1 per cent in that period, and the
oilfield service centre of Aberdeen has
been in recession with falling property
prices and rising unemployment.
The fall in oil price is not the result
of natural swings of supply and
demand, but a systematic attempt
to bankrupt higher cost producers in
the west and shut down production
there through increased production
from Opec. This may benefit
consumers in the short term, but in the
context of rising political violence in
However, the change that I have
noticed more is the loss of the three-
dimensional characters that populated
medicine, and, probably, other
professions. One of my consultants
would smoke a cigar after rounds early
on a Wednesday morning. It was the
registrar’s duty to hold a saucer for the
ashes, which would be dutifully washed
by the ward matron. The consultant
would always thank the registrar and
the matron and move on. It gave him
great pleasure to have his smoke while
discussing patients, and none of us saw
anything odd about the arrangements.
Another consultant, whose operating
theatre lists usually finished well into
the night on a Friday, had an unwritten
rule that the senior fellow would
arrange for one of the juniors to bring
in a bottle of plonk and the fellow
would procure a cake (home-made
cakes received more points than off-
the-shelf cakes), of which we would
partake before we stumbled home. All
the registrars, fellows and visiting
surgeons would look forward to this
weekly wrapping-up.
Of course, alcohol is banned in
hospitals nowadays. When I regaled my
colleagues with this story, I implied
that at least cakes were not banned.
They did not take the bait.
BCK Patel
Professor of Cosmetic & Reconstructive
Plastic Surgery,
University of Utah, US
Strictly speaking, it’s
the three kings’ cake
Sir, On your Letters page one learns so
much: interesting topics, supplements
and comments about articles read on
previous days, etc.
The letter from Louis-Cyprien
Doucet (“Profit margin makes king’s
cake tasty for bakers”, January 15) was
exemplary in its informative content,
giving us the business angle on a local
custom in the baking industry across
the Channel.
The attention to detail that animates
readers to write in and inform us fully
should be consistent, however, so I
don’t think it is pedantic to point out
that the apostrophe S here is a mistake.
The galette des rois talked about refers
to the wise men from the east of whom
there were three, so we should be
reading about the kings’ cake, ie S
apostrophe.
Since attention to detail is of the
essence on your page, one might as well
go all the way.
Richard Clarembaux
London E17, UK
now aged nearly four, adopted by an
American family and living in Seattle.
He was recently diagnosed with Usher
syndrome — a genetic disorder that
will leave him not just deaf, but blind
as well by adulthood.
It may not sound like it, but Bennett
is lucky. First, it’s rare in cases such as
this for a birth parent to leave a note
at all, and far rarer for the note to
include anything but time and date of
birth. The note was preserved in
Bennett’s orphanage file (another
rarity). And last week fate conspired
to deliver another remarkably joyful
twist to the story, when Bennett’s
adoptive mother managed to find the
father who wrote that letter.
Molly Sano, a Seattle sign language
interpreter, appeared on local
television in Ningbo, and scarcely
three days later she’d met the boy’s
mother, father, brother, six-year-old
sister and a healthy boy born after
Bennett was abandoned (proving yet
again that China’s one-child policy is
often a misnomer).
“So many things had to go just right
for this to happen,” Ms Sano said: the
doctor who diagnosed Bennett as a
baby saw the TV report, the parents
had not changed their phone number
and they resisted the urge to ignore a
call from one they didn’t know.
Frightened that she might be in
trouble, the mother at first denied
who she was. But she quickly had
second thoughts and called back.
Within hours, this extraordinary
extended family was united —
and Bennett’s two mothers could
Tuesday 19 January 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
the Middle East, such dependency
creates enormous future risk.
Your newspaper has consistently
stated that it supports greenhouse gas
reductions and stability in the Middle
East. The current crash in prices will
only lead to further energy dependency
on oil from the Gulf region, and will
increase conflict there. Low oil prices
make Hummers economic again, and
emissions higher. I suspect the
unforeseen consequences of the
“welcome drop” may be far more
pernicious than beneficial.
George Horsington
President — Offshore & Business
Development,
MMA Offshore Asia Pte,
Singapore
An alternative way of
taxing carried interest
Sir, With reference to “A tax break that
Wall Street cannot defend” (editorial,
January 15): a carried interest is best
viewed as an interest-free loan from
investor to manager, with the loan
proceeds being invested along with the
investor’s funds and repaid to the
investor upon maturity of the pool. If
the pool realises gains, the manager’s
share is therefore properly taxed as
capital gain, just as an individual’s
profit when buying stocks on margin is
capital gain.
For example, a manager with a $100
pool and 20 per cent carry receives a
$20 loan which he invests with the
investor’s $80 of principal; if the pool
terminates with $30 of profits, the
manager repays the loan and gets $6 of
profits, and the investor gets back $80
of principal, $20 of repaid loan, and
$24 of profits.
The law should, however, be
reformed to tax the interest-free
component of the transaction, with the
amount of forgone interest,
determined at a reasonable rate, being
taxed to the manager as ordinary
income. In addition, if the pool realises
losses, the manager in effect doesn’t
have to repay the deemed loan to the
extent of the losses allocated to him.
This loan forgiveness should also be
taxed to the manager as ordinary
income, with his share of losses being
treated as capital loss.
In our example, if the pool
terminates with $30 of losses, the
manager repays $14 of the loan, has $6
of debt forgiveness income and $6 of
capital loss, and the investor gets back
$56 of principal, $14 of repaid loan (for
a total of $70), and has $24 of capital
loss.
This approach, although more
complicated than simply taxing the
manager’s share of profits as ordinary
income, is truer to the underlying
economics of the arrangement.
Dudley Kimball
Ridgewood, NJ, US
What conmen want you
to carry on believing
Sir, Michael Skapinker’s book review
“Why Madoff and other con artists
keep fooling us” (January 14) reminds
me of the observation along the lines
that: “The average American thinks he
is a pretty shrewd customer. This is
precisely why conmen thrive.”
Dr Clinton Orr
London EC1, UK
hardly stop hugging and crying. They
did have one touchy subject to tackle:
the birth father’s letter makes clear
that he abandoned the baby because a
doctor told him the child needed a
cochlear implant and the birth family
could not afford one.
But Ms Sano and her husband, Chris
— who is deaf — plan to let Bennett
decide later if he wants an implant.
They have taught him to sign. “To us,
he is perfect,” says Ms Sano. “This isn’t
a sad story of a deaf boy who will lose
his vision, it’s a joyful, powerful story
of a boy who happened to land in a
family and a location that are a perfect
fit for him,” she says. “There is no
limit to our dreams for our son.”
Back in China, the birth family’s
financial situation has improved; the
father now has an iPhone 6s. But they
think Bennett is lucky, too. “The birth
mother said, over and over, now that
we have seen your family, we can see
that he has a better life there than
here,” Ms Sano says.
So Bennett is where he needs to be.
But as the adoptive mother of two
abandoned Chinese daughters myself,
I can’t wait for the day when birth
parents can nurture dreams for their
deaf toddlers without having to
discard them in the street to make
that happen. Gross domestic product
is one thing, but I’ll be looking for a
different measure of Chinese success:
the day the last father writes a letter
like that before leaving his disabled
baby in the shadow of skyscrapers.
patti.waldmeir@ft.com
Tuesday 19 January 2016
POLITICS
Janan
Ganesh
F
or someone who is quite good
at it, David Cameron is not
very interested in politics.
Britain’s prime minister does
not read Robert Caro’s monu-
mental works on American statecraft
for fun. He avoids Borgen, the television
drama about a Danish government,
because it is “too much like work”.
He never talks policy or strategy with
friends, most of whom pre-date his
career. His Downing Street is not Bill
Clinton’s White House: there are no late-
night symposia over pizza, no infectious
enthusiasm for politics as sport. When
he retires, he will retire easily.
All politicians understand Yes, No and
Undecided. Only the winners under-
stand Don’t Much Care. Mr Cameron
communicates crisply because he
Bowie’s lesson
is not to worry
about politics
FOREIGN AFFAIRS
Gideon
Rachman
T
he death of David Bowie last
week made me feel first
wistful, then optimistic. At
a time when the papers are
full of war, terrorism and
crashing markets, listening to Bowie
reminded me not to get too worked up
about the daily headlines. Music and art
will last, long after the political and eco-
nomic news has faded away.
Bowie’s greatest work was produced
against a bleak political background.
The five years between the release of
The Rise And Fall Of Ziggy Stardust And
The Spiders From Mars in 1972 and Heroes
in 1977 were bad times in Britain. A lit-
any of problems facing the country back
then sounds strangely familiar: terror-
ism, war in the Middle East, the oil price,
refugees (from Uganda), a referendum
about whether Britain should “stay in
Europe”. These were the issues that seri-
ous people, the types who write newspa-
per columns, were worrying about.
Some songs produced by a cross-
dressing rock star and performed at
London’s Hammersmith Odeon must
have seemed like trivial stuff by
comparison.
And yet, looking back, what truly sur-
vives from Britain in that period? The
OPINION
Robert
Zoellick
A
fter seven years of extra-
ordinary governmental
stimulus, the world needs a
shift from exceptional
monetary policies to pri-
vate sector-led growth. The US Federal
Reserve’s increase in interest rates
sounded the clarion call. China’s market
tribulations highlight deepening global
uncertainties and the need for new
approaches. Three possible ways to gen-
erate growth stand out for 2016.
First, Lawrence Summers warns of
the threat of “secular stagnation” posed
by a world lacking demand, and grafts
decades of globalisation on to a theory
developed in the late 1930s. The former
US Treasury secretary fears emerging
markets face sluggish global demand,
capital outflows, weaker investment
prospects and depreciating exchange
rates. Without new demand, emerging
Voter apathy is perfectly respectable
knows most people only tune in for a
few minutes a day. He does not lose him-
self in marginalia that no swing voter
will ever notice. Rousing a nation
through force of personality is some-
thing leaders do in films: the real art of
politics is accepting apathy and bending
it to your purposes.
And it all starts with the realisation
that apathy is not a type of sickness.
Unlike the Labour party, opinion poll-
sters chose self-examination over self-
indulgence after flunking last year’s
general election.
The inquest into their failure to pre-
dict a Conservative majority is pub-
lished by the British Polling Council
today, but early studies have already
converged on an answer. The polls, it
appears, over-sampled people who are
“politically engaged” (to quote Matt
Singh, an analyst who saw the result
coming) and under-sampled the indif-
ferent, who were leaning Tory.
This is intuitive enough: anyone who
submits to a survey is likely to be more
political (and keener to vent) than aver-
age. Young respondents were particu-
larly unrepresentative of their peers.
strangled vowels of Ted Heath, who was
prime minister during much of Bowie’s
heyday, now sound like they are coming
from a distant era. The political debates
of the time are pored over only by histo-
rians. By contrast, Ziggy Stardust is still
listened to all over the world every day,
and still sounds fresh and exhilarating.
The fact that Bowie’s music has lasted,
while the political news of the time no
longer concerns us, is a comforting
reminder that — for most people, most
of the time — political and economic
news can be safely ignored. In peace-
time it is personal not public events that
define our lives. And for many people,
memories are set against a soundtrack
of music and songs — linked to friends,
places and events. It is a good bet that
the personal soundtracks of most of the
political and business leaders in the
west today will include a fair amount of
Bowie.
The emotional reaction to the news of
Bowie’s death is not simply a reminder
of the relative importance of art and pol-
itics — and of private and public life. His
music was more than mere escapism.
Bowie, who left school with few formal
qualifications, had a better feel for the
forces shaping the modern world than
most of the politicians or journalists of
the 1970s.
While the British political class was
obsessed by industrial relations, the bal-
ance of payments and a pervasive sense
of national decline, Bowie’s music
reflected the social and technological
forces that were really reshaping the
lives of ordinary people. Songs like
How to wean the world off monetary stimulus
markets will weigh down developed
ones, which will in turn further depress
developing countries.
According to this theory China, long
the rising source of growth, faces a diffi-
cult conversion from a heavy industrial
to a services economy. In circumscribed
global economic conditions, policy-
makers will weaken currencies to lure
limited demand, provoking pro-
tectionist countermoves. The solution is
big government spending, especially on
infrastructure, financed by borrowing
at extremely low interest rates.
Kenneth Rogoff, who argues the glo-
bal economy is in the later stages of a
debt “supercycle”, offers a second per-
spective. Professor Rogoff’s history les-
sons suggest growth will recover, albeit
slowly, as time erodes the burdens of
financial excess. Systemic market crises
— a worldwide whirlwind fed by the col-
lapse of housing in the US and else-
where, debt dangers in the eurozone
and financial tremors in China and
emerging markets — have penalised the
global economy with a long probation-
ary period.
If Prof Rogoff is correct, Prof Sum-
★ FINANCIAL TIMES
Comment
The outcome of this sampling bias was a
grievous overestimation of turnout, and
of Labour support. In his post-election
research, the psephologist Professor
John Curtice found Labour had a six-
point lead among easy-to-reach voters.
Among those who took between three
and six calls to respond, the Tories were
favoured by 11 points.
So, unengaged voters were dispropor-
tionately happy with the status quo.
Britons rouse themselves
every five years to stop hot
heads and crusaders from
running their country
Apathy does not imply alienation. It
does not even imply ambivalence. A
person can be satisfied with the way the
country is run and refuse to say or do
any more on the matter other than vote
to keep it going.
Apathy is a respectable disposition in
a country where, for most people most
of the time, life is tolerable-to-good.
“Changes” captured a sense of personal
opportunity and liberation to set against
the prevailing political and economic
gloom.
Ideas about the malleability of sexual-
ity and gender were played out in
Bowie’s androgynous stage persona in
ways that foreshadowed today’s debate
about lesbian, gay, bisexual and trans-
gender rights. Bowie did not expend
much energy campaigning for gay
rights. He did something much more
powerful. By living his life and making it
seem joyous and glamorous, he both
reflected society and changed it. By con-
trast, the politics of the time was stuck
in the 1950s — with nudge, nudge refer-
ences to the prime minister as “sailor
Heath” and a “confirmed bachelor”.
Bowie’s music was also suffused with
His focus on the personal
made the depressing
headline news of the
1970s seem irrelevant
mers’ surge in government spending
would just prolong the debt disease. Prof
Rogoff would instead seek to ease debt-
ors’ plights by keeping rates low or even
negative, and by restructuring debt,
while setting the stage for productive
investment. He too sees the benefit of
infrastructure investment, although he
is wary of wasteful state projects.
The third growth solution would re-
Without a shift to
growth policies, we are
more likely to see currency
conflicts and populism
focus policy on boosting productivity
and potential, especially in the private
sector. Supply-siders such as Michael
Spence, a Nobel laureate in economics,
and Kevin Warsh, a former US Federal
Reserve Board governor, are concerned
that extraordinary policies distort pri-
vate sector expectations about invest-
ments, profits, taxes, valuations and
future governmental actions. They em-
There are nations with much hotter pol-
itics, and they tend to send refugees to
tedious old Britain.
This should be the most obvious thing
in the world. You will have several
friends who match this profile of con-
tented languor. But among politicos, on
the Labour side especially, it is a shock
finding. They priggishly elide apathy
with dysfunction: if voters do not care,
something must be wrong with the body
politic.
Over the past decade, the British left
has fallen for civic engagement as an
end in itself. Barack Obama’s campaign
for the US presidency; the street politics
of Spain and Greece; the Scottish
National party, with its rallies like rock
concerts — all served as templates.
Jeremy Corbyn, the Labour leader,
imagines himself the frontman of a
movement, not a mere party. Ed
Miliband, his predecessor, spent five
years talking up a “new” politics of
mass participation. Labour centrists do
it too.
The modern left — far more than the
right, and more than the left under Tony
Blair — is a pullulating scene. There are
an intuitive understanding of the poten-
tial of technology to reshape the world.
Songs like “Space Oddity” and “Star-
man” reflected how different life on
earth felt after the moon landings of
1969. Thirty years later, he was one of
the first artists to understand the radical
implications of the internet — launching
his own online music service in 1998 and
telling a sceptical BBC interviewer that
the internet would break down the bar-
riers between audiences and artists and
that “the interplay between user and
provider will crush our ideas of what
mediums are all about . . . We’re on the
cusp of something exhilarating and
terrifying.”
Bowie was even a financial innovator.
He was the first rock star to issue bonds,
secured against his future royalties,
making him a pioneer in the field of
securitisation. (But, then again,
nobody’s perfect.) He had a knack for
identifying himself with the powerful
trends of the future that clearly
extended to finance as well as music,
technology and sexual identity.
The arc of Bowie’s life captured the
phasise that the demand that will drive
private capital investment, which
should support higher wages and prof-
its, is expected future demand. In con-
trast, policies intended to boost demand
in the near term can actually discourage
business confidence in the future; they
are likely to rely on mergers, acquisi-
tions and stock buybacks rather than
big long-term commitments.
Similarly, others call for tax and regu-
latory policies to encourage private sec-
tor investment and employment. Open
trade policies, encouragement of in-
creased labour force participation (inc-
luding for women and disabled people),
legal immigration, and more effective
education and training could also boost
potential growth. The creation of scien-
tific, educational and entrepreneurial
conditions that encourage technological
progress would create opportunities.
The problem is that such structural
growth reforms have proved politically
difficult. With leaders shaken by the rise
of populists and nativists, it is easier to
rely on state spending or central banks.
The critical question for 2016 is
whether countries will face up to vital
workshops on movement-building.
There are conferences called Change:
How and even worse names.
There are alliances across old lines:
students and trade unions, activists and
commentators. There is sensational
commotion to near-zero effect. These
people are sincere, resourceful and
uniquely bad at understanding the
country they live in. They see in apa-
thetic voters a river of petroleum beg-
ging to be ignited.
This is what happens when people
spend too much time in central Athens
and not enough watching shoppers
trundling their trolleys through the
Tesco in Leighton Buzzard.
Apathetic Britons are not waiting to
be redeemed. They just have lives to get
on with. Not only are they apolitical;
they rouse themselves to vote every five
years precisely to stop hot heads and
crusaders from running their country.
They like Mr Cameron because he gov-
erns well enough to save them having to
think about politics. He is prime minis-
ter because someone has to be.
janan.ganesh@ft.com
evolution of postwar Britain. He was
born in 1947 and grew up in years of aus-
terity, when that word meant food
rationing rather than a freeze in public-
sector pay. He came of age in the 1960s
as class and cultural barriers came
crashing down to a soundtrack provided
by The Beatles and the Rolling Stones.
And in the 1970s, he himself took popu-
lar music and culture into new and
exciting directions. His focus on the per-
sonal, rather than the political, made
the depressing headline news of 1970s
Britain seem transient and irrelevant
and, in a way, they were.
I will bear that thought in mind this
week at the World Economic Forum in
Davos. There will be plenty of powerful
people there and I suspect the mood will
be gloomy, influenced by events in the
Middle East, China, Wall Street and
Iowa. It might be salutary to tune out the
political and economic chatter and to
listen to some music instead — just to
remind myself that good art lasts, long
after bad news has faded.
gideon.rachman@ft.com
structural reforms. For China and many
other emerging markets, they are neces-
sary to overcome the middle-income
trap. Shinzo Abe, Japan’s prime minis-
ter. needs to implement his “third
arrow”, comprising increased competi-
tion, corporate governance and encour-
aging more women into the work force.
For the eurozone, labour market flexi-
bility, incentives to work and invest, and
more efficient systems of social protec-
tion are vital. For the US, the question is
whether the public will elect a president
and Congress that will work together to
rekindle private dynamism.
If in 2016 there is no shift from mone-
tary to growth policies, the future envi-
sioned by Profs Summers and Rogoff
could prove more likely: sluggish
growth; currency conflicts; and populist
politics and fights over distribution —
punctuated by mini-crises as struggling
economies falter. Political leaders can
either try to shape their countries’ desti-
nies now or risk a future reckoning from
the decade’s economic experiments.
The writer is a former president of the
World Bank and US trade representative
9
Gender equality
in the tech sector
will benefit the
global economy
OPINION
Martha
Lane Fox
T
he “internet industry” is
only 30 years old. It is con-
siderably younger than our
broad societal acceptance
that women should have an
equal place in the workforce. The soft
rhetoric now is all about the internet
enabling “disruption” and “sharing”. Yet
what is supposed to be a democratising
force is built on a platform of profound
gender imbalance.
The internet economy is driven and
dominated by men. Women occupy just
17 per cent of tech jobs in the UK. This
percentage has reached a plateau in the
past five years while the sector has
grown in importance to the economy.
Worse still, fewer than one in 10 of
these women are in leadership positions
in the sector. Women make up 3 per
cent of partners in venture capital firms,
20 per cent of tech founders and, per-
haps most shockingly, 4 per cent of soft-
ware engineers. The people building the
internet, the services we all use, are
overwhelmingly men.
This gender imbalance affects us all.
We have a national digital skills crisis.
There are 600,000 vacancies in the sec-
tor, forecast to rise to 1m by 2020. If we
do not understand why, and try to rec-
tify it, we are missing out on half the tal-
ent pool.
We can even look backwards to come
up with imaginative solutions. In 1962
Dame Stephanie Shirley started a soft-
ware engineering company where
almost all the staff were women. Many
of them had children and worked flexi-
bly from home. Her company pro-
grammed the black box for Concorde.
How many developers
could we train from the
800,000 women
unemployed in the UK?
At its peak in 2000, her business was
worth £2.6bn.
Products, services and ideas that are
not founded on diverse thinking will
never be as competitive as those created
by gender-balanced teams. I may be
biased but I believe the company I
founded in 1998, lastminute.com, was
more successful with Brent Hoberman
and me as co-founders.
When Apple launched its health kit in
2014, touted as a monitoring system for
every aspect of physical wellbeing,
there was no capacity to track a men-
strual cycle or menopause. This was
perhaps unsurprising. There were,
reportedly, no women on that develop-
ment team.
Similarly, if there had been more
women involved in its creation, Twitter
may have avoided many of its issues
surrounding blocking and abuse.
Think of the new product areas and
untapped markets that the internet has
yet to improve: maternity, end-of-life
care, mental health. In all these areas
women are the main consumers and
potential drivers of the next global econ-
omy. Any company — or, more boldly,
country — that dramatically improves
its tech diversity will have enormous
competitive advantage.
So what can we do to make sure that
the technology sector underpinning our
economy and society is not a replica of
the male business establishment built at
the start of the 20th century? Plenty.
Changing the education system is an
important starting point but other
things should happen in parallel.
Why is the corporate sector, which
urgently needs to fill jobs, not running
programmes offering coding skills to
unemployed women or mothers want-
ing to return to the workforce? It takes
six months to train a novice with some
basic maths in the programming lan-
guage, Java. How many developers
could we train from the 800,000 women
unemployed in the UK?
Or we could offer stipends to cover
women’s expenses while they build their
ideas or business plans. Pre-seed fund-
ing could also be an effective mecha-
nism to help those women who do not
have the risk appetite to leave their job
but who do have a great idea.
Let us all help to realise the original
promise of the internet as an empower-
ing, universal and democratising force
by making sure its leaders, investors
and entrepreneurs come from the wid-
est pool of talent.
The writer is chair and founder of Dotevery-
one.org.uk
10 ★ FINANCIAL TIMES Tuesday 19 January 2016

BUSINESS LIFE

When CEOs
From Paris, Pierre Nanterme recently
made a presentation to staff near
have to be there Chicago — through a hologram. It’s a
nice trick if you can pull it off and it is
one of which Accenture’s chief
. . . and when executive, who last week showed me a
picture of the live presenter high-fiving
they do not his virtual image, is rather proud.
Using Skype, telepresence (the video
‘
together in the same place at least fun”. Another reason the almost
once a month. equally well-travelled Mr Ittycheria Art of persuasion
The truth is that chief executives
exaggerate both the power of their
presence and the power of technology
will not be at Davos is that he aims to
maintain at least some semblance of
balance between work and play. A State of the Union reply that
to stand in for them.
For the few hundred corporate
Technology is a wonderful enabler
of certain tasks. Laku Chidambaram of
survived its leaden delivery
leaders who travel to the Swiss Alps
each January, there are many tens of
While
Accenture’s
the University of Oklahoma, who has
been studying team working for more
SAM LEITH

conferencing technology that gives
participants the impression they are in
the same room as distant colleagues or
clients) and other tech tools, Mr
Nanterme is able to boast that senior
executives at the consulting group
“don’t have physical meetings”.
While this is a useful story to
convince clients to pay Accenture to
thousands, including Mr Ittycheria,
who don’t think it is worth it. If Davos
is not merely the ultimate festival of
presenteeism (and it is that, too), the
attraction must be that it is an occasion
where the benefits of human
interaction repay the cost and effort.
Otherwise, why not simply line up
competitors, customers and
than 25 years, says a group of up to five
boss now people, using even basic telephone
beams in by conferencing (he is sceptical about
video adding much), can, over time, be
hologram, more effective even than groups that
face-to-face meet face to face.
Collaboration software that conceals
meetings rank and status also eases progress:
still count “It does help people express their

digitise their own processes, it is ragged
with exceptions and contradictions.
Mr Nanterme concedes that when
the quality of the meeting is important,
or it involves a visit to a client’s factory,
or there are lots of participants, it may
be better to meet in person. He is
himself on his way to Davos for the
ultimate face-to-face gathering of the
chief executives’ tribe. The World
Economic Forum is a unique occasion,
he claims, echoing the justification
of other participants.
Andrew Hill Another chief executive I met last
week, Dev Ittycheria of MongoDB, a
Onmanagement fast-growing database company, makes
a similar boast about his ability to run
the company remotely. But he is also
convinced that talking to his managers,
customers and investors in person
makes a difference. “Sitting down with
people face to face has a big influence
on how that relationship develops,” he
told me. His management team gets
John Reed visits a site in
Hadera where employees
from companies overseas
learn how to respond to
the threat from hackers
’
suppliers one after another in opinions more freely [when] they’re
a telepresence booth? not intimidated by the presence of the
Sometimes, though, the looming chief executive,” he says. It is relatively rare for the a bad move. You can, as Ms
presence of the chief executive is a It occurs to me that one unsung 44th President of the United Haley of course did, always
drawback. David Potts, CEO of UK benefit of corporate leaders clustering States to be upstaged. But move on to the “but” — and
supermarket chain Morrisons, is a in Davos is that their absence from that is what happened last it is all the more forceful if
hands-on retailer, as comfortable on headquarters increases the efficiency week. Nikki Haley, governor contrasted, regretfully, with
the shop floor as in the boardroom. He of the teams they have left behind. of South Carolina, delivered the generosity of your initial
urges his senior managers to do regular Even so, what ought to be obvious to the GOP’s response to compliment.
stints helping in the shops, and leads by even the most digitised chief executives President Obama’s last State She also made a strong
example. But he freely admits he can is that face-to-face meetings still count. of the Union address (the pitch for her audience: “At
influence the stores better from the There is still no better way to establish usual relaxed, polished the outset, I’ll say this:
centre than from the shops themselves, trust, which then helps virtual teams performance). Almost you’ve paid attention to
confounding the tired idea that “the flourish. As Charles Handy, the immediately the public what has been happening in
headquarters is where the chief management thinker (who makes conversation turned to her Washington, and you’re not
executive is” (a mantra for both Mr
Nanterme and Mr Ittycheria).
a point of inviting new contacts to dine
with him and his wife at the start of
and stayed there.
In the context of the us-
naive. Neither am I. I see
what you see. And many of
Another pitfall for leaders is that any relationship), has said: “You need and-them terms of current your frustrations are my
incessant travel may cause them to to smell the person: you can’t do that political discourse in the US, frustrations.” As is now
burn out. Mr Ittycheria’s predecessor on Facebook.” You cannot do it with a what is striking is that Ms boilerplate, she connected
Max Schireson resigned with a widely hologram either, he could have added. Haley’s speech drew her story directly to that of
circulated blogpost which explained generous praise from the “millions of other
that by flying 300,000 miles every andrew.hill@ft.com White House while arousing Americans”, touched the
year, he had “missed a lot of family Twitter: @andrewtghill the spitting fury of many hem of the constitution and
prominent voices in her own strove to give her position
party. Was that a goof? We on immigration the
have yet to see, but it is a authority of centuries of
natural consequence of the tradition.
strategy she adopted. It is, in From then on her theme
fact, much the strategy Mr was “we”: she used the first-
Obama adopted when he person plural pronoun more
was in opposition, reaching than 50 times in a nine-
out across the floor, minute speech. And
acknowledging wrong on
both sides, repudiating the
between the “we” of the
outset (we Americans) and
fiercest voices of the “we” of her subsequent
antagonism on your own
side. Both attempted to look
peroration (we Republicans)
she did not care to make too
statesmanlike by positioning fine a distinction. She rather
themselves above and
beyond partisan sniping.
pointedly trimmed that “we”,
though, to exclude the
The first thing one can supporters of Donald

T
he fluorescent-lit, white- say of Ms Haley’s speech, Trump; whom she implicitly
walled space could be the just as a piece of oratory, is patronised as the weak and
control room of any indus- that her text was a damn silly brethren who succumb
trial facility: a power sta- sight better than her to the temptation to “follow
tion, factory or offshore oil delivery. Eyebrows in a state the siren call of the angriest
rig. Alongside three people working at a of near perpetual elevation voices”.
bank of desktop computers is a water and mouth fixed in a ghastly It has not escaped
boiler turbine generator of the type used smile, she looked like a anyone’s attention that this
at power plants. Nearby, a large main- Stepford Wife reading an speech — its apparently
frame computer is quietly doing its autocue. Pauses were centrist bent underlined by
work. Suddenly the turbine screeches, unemphatic, stresses the reaction to it on both
an alarm sounds and water begins to seemingly random. So sides — was not only an
flow out of the boiler and fill up the glass concerned did she seem attempt to trim the GOP’s
casing behind which it stands. with the composure of her sails ahead of the election,
It seems the facility is under attack. features that she showed no but a pitch for the vice-
This unsettling scene, entirely simu- real sign of thinking about, presidential slot on the
lated, is unfolding at the CyberGym, a or connecting with, the ticket. Good luck to her with
training facility in Hadera, northern words as she spoke them. that. In the meantime,
Israel. It is designed to coach companies, Her text, though, was a someone for goodness

For sale: Israeli insights

governments and other entities in how good one. She began by sake get that lady a media
to cope with a cyber attack. Trainers are saying something nice about coach.
on hand to monitor the keystrokes and her opponent, “Barack
reactions of the people sitting at the Obama’s election as artofpersuasion@ft.com
computers to see how they respond, and president seven years ago

into battling cyber attacks

give them feedback to help them cope
with attacks in real life.
“We want to see and feel how it looks
to be under attack, before they are at-
tacked in their real organisation,” says
Ofir Hason, CyberGym’s co-founder and
a former official in Israel’s Shin Bet secu-
rity service.
CyberGym is one of several Israeli
companies capitalising on the country’s
expertise in online security, developed
in response to what it describes as a new
theatre of war and a threat that analysts
liken to asymmetrical guerrilla warfare.
The Jewish state’s expertise has been
built in symbiosis with Israeli intelli-
gence and the military, known for their
defensive and offensive capabilities in
cyber.
Israel’s military is widely acknowled-
ged to have worked with the US to des-
ign the Stuxnet worm, which infiltrated
computers powering the centrifuges at
Iran’s Natanz nuclear facility in
2009-10, although Israel never con-
firmed it was responsible for the attack.
The Israel Defence Forces is setting up a
new cyber division, the first of its kind,
intended to operate on an equal footing
with its land, air, and naval corps.
Israeli companies last year exported
$3.5bn to $4bn of cyber security prod-
ucts and attracted nearly 20 per cent of
global private-sector investment in the
sector.
In training customers on how to cope
with cyber attacks, CyberGym is tap-
ping into organisations’ growing fears
about online security and expanding
budgets for all things cyber-related —
spurred on by embarrassing and costly
hacks at several companies and organi-
sations, including Sony, Target and
JPMorgan.
CyberGym’s trainers watch how peo-
ple react and then advise. While most
companies’ chief information officers
have good technical fixes for specific
problems relating to online security, the
Israelis say, few are dealing with the full
variety of problems or challenges that
reach deep into organisations.
“The weakest link in the chain is the
human — it’s the providers, the suppli-
ers, the managers,” says Mr Hason.
War games: a CyberGym is 50 per cent owned by
hooded hacking Israel Electric Corporation, with the re-
instructor in mainder held by Mr Hason and IT com-
CyberGym’s Red pany Liacom. IEC, the state-owned
team building. power company, is a widely acknowled-
Below, Ofir ged expert in fending off hackers. In
Hason, 2015 it faced an average 8m to 9m at-
CyberGym tempted attacks a month on its comput-
co-founder ers, mostly by anti-Israel “hacktivist”
Eyal Warshavsky groups around the world. Some, say
Israeli military and government of-
ficials, enjoy support from state actors
such as Iran.
In Haifa, a 45-minute drive north of
Hadera, IEC runs a cyber security oper-
ation centre at its high-rise headquar-
ters, which operates round the clock,
Utility and other critical infrastructure
Critical companies are becoming especially
sectors vigilant in boosting their defences
against malicious hackers.
The threat to power companies was
Feeling clear last month when a cyber attack put
vulnerable out the lights in hundreds of thousands
of homes in Ukraine for several hours, in
the first such attack thought to have
resulted in a mass power outage.
Ukraine’s SBU intelligence service said it
had found malicious software in the
computer networks of some of its
regional power companies. Cyber
365 days a year. This is not simulation,
but the real thing: technicians monitor
an array of indicators and screens
meant to track the security of the com-
pany’s network. One displays a rotating
Google Earth globe that shows where
attacks at any given moment emanate
from, indicated by rising flames.
China, the US and Israel itself are all
prime sources of cyber attacks on IEC,
the company says, but many of these are
automated and emanate from attackers
elsewhere. IEC says Saudi Arabia, Iran,
Turkey, Indonesia and Malaysia are the
main sources of cyber attacks from the
hacker group OpIsrael, for instance.
“We have two and a half million cus-
tomers,” says Ronen Dekel, IEC cyber
security manager, who operates the
cyber “war room” in Haifa. “Any part of
the chain could be attacked, and the
effect would be a shutdown of
electricity.”
IEC began selling its expertise in foil-
ing hackers to the wider world in 2013
when it launched CyberGym. Since set-
ting up, the facility has hosted about 80
clients in sectors including energy,
finance, industry and government.
CyberGym offers what it describes as
tailor-made training programmes, of a
size and duration determined by its cus-
security companies blamed the attacks
on BlackEnergy, a form of destructive
malware.
This is becoming popular with hackers
and was used in the 2012 attack on
Saudi Aramco, the oil company, which
disabled 35,000 computers across its
network.
It is also used by criminals as a
weapon in ransom attacks, one of the
scenarios CyberGym trains for, in which
money is demanded from companies or
individuals after they are threatened
with destruction of their networks.
tomers and on computer networks spe-
cially set up to mirror their own. The
company does not disclose financial
reports or discuss its fees, but offers
what it describes as a “premium prod-
uct”. Customers include Spain’s minis-
try of defence, the Portuguese bank Mil-
lennium BCP and the Lithuanian gov-
ernment.
The company is expanding its fran-
chise internationally: CyberGym estab-
lished a facility in Portugal for EDP, the
Portuguese electricity company, and
plans to open another one called Cyber-
Gym Europe in the Czech Republic next
month. In 2017 it wants to open an Asian
operation, probably in Singapore.
CyberGym’s training facility at Had-
era is on IEC-owned land on a former
citrus plantation, in a setting that mir-
rors Israel’s transition from old-econ-
omy export businesses to high-tech.
The campus-like venue, comprising
white, colonial-style low-rise buildings
that used to house farmworkers, allows
for advanced role-playing, as trainees
are divided into teams for a “cyber war
game”. A Blue team is told to defend
against a simulated attack; a Red team
carries out the attack; and a White team
debriefs the trainees to piece together
which vulnerability the hackers used to
penetrate the Blue team’s system.
The Red team’s building is mocked up
to create a menacing atmosphere. The
walls have graffiti inscriptions featuring
lines of code and an image of Darth
Vader as well as big video monitors.
The face of the trainer, wearing a
hooded sweatshirt, cannot be photo-
graphed because — like most CyberGym
employees — he is a veteran of either
Shin Bet or one of the IDF’s secret intelli-
gence units.
A simulation of what it is like to be
under attack before it actually happens,
Mr Hason says, is “like doing paintball
before getting into a real fight”.
broke historic barriers and
inspired millions of
Americans”, which is seldom
Great place to meet
Okra, Karachi
Where 2-C, 10th Zamzama Commercial Lane, Ph-V, DHA
Plug sockets No/WiFi Yes
Open 12.30-3pm; 7.30-11.30pm; closed Mon
Meeting at Okra café, just
off Karachi’s upmarket
Zamzama Boulevard, will
place your client at ease
over security in what is often
described as Pakistan’s most
violent city, with some 20m
inhabitants. It is no more
than a 15-minute drive from
Karachi’s downtown five-
star hotels — on a route well
removed from areas
previously beset by the
violence among Karachi’s
political rivals.
Okra prides itself on
serving a range of European
cuisine including vegetarian,
chicken, seafood and beef
options — offering a break
from the world of Pakistani
curries. Although generally
in demand by locals,
such dishes may not be
suitable for clients averse to
typical south Asian spicy
and greasy food. Many
The writer is the author of
‘You Talkin’ to Me?’ Rhetoric
from Aristotle to Obama
Espresso Rps245 ($2.30)
Privacy AAAEE
wealthy Pakistanis visit Okra
for a change from local
cuisine.
The café — named after
the vegetable that is known
in many English-speaking
countries as ladies’ fingers
— consists of a ground floor
and a top floor. Unlike other,
more spacious, upmarket
restaurants in Karachi,
Okra’s limited capacity of 40
customers often means that
guests need to book, while
walk-in customers are
discouraged.
Ayaz Khan, the owner, is
unwilling to expand Okra or
set up another branch for
fear that the quality may be
diluted. “Right now, we offer
exclusivity in quality of our
food and our service. We
don’t want to lose that,” he
says.
Farhan Bokhari
Tuesday 19 January 2016 ★ FINANCIAL TIMES 11

ARTS

Trills and thrills POP

Patty Griffin

from Barenboim
Sage, Gateshead, UK
aaaae

Ian Wylie

Patty Griffin has always evaded easy

CLAS SICAL MUSIC
Daniel Barenboim
Royal Festival Hall, London
aaaee
Richard Fairman
It was 60 years to the day since Daniel
Barenboim’s debut at the Royal Festival
Hall. The hall had been opened just five
years earlier. Barenboim was 13 years
old. It would be an exaggeration to say
the relationship has been unbroken
(Barenboim became an infrequent visi-
tor in the 1980s and ’90s), but recent
years have seen his return with some
major projects — the complete
Beethoven and Schubert piano sonatas,
Beethoven and Brahms symphony
cycles, and more.
This anniversary concert was a
one-off. There were speeches. There
were reminiscences of friends and col-
leagues together with an unplanned
encore (“Traumes Wirren” from Schu-
mann’s Fantasiestücke). And there was
much Brahms.
The concert was the last in the Simón
Bolívar Symphony Orchestra of Vene-
zuela’s visit to London and Barenboim
joined the orchestra and its musical
director, Gustavo Dudamel, for the two
heavyweight Brahms piano concertos in
one evening — nothing more, nothing
less. (His support for the Venezuelan
“system” of creating orchestras for
deprived youngsters was underlined in
his after-concert speech.)
As a pianist, the 73-year-old Baren-
boim exudes a magisterial air. His play-
ing is grand and spacious and rich in
tone. He tends to splash through techni-
cal challenges, is generous with the sus-
taining pedal to cover any sins, and
occasionally gazes into the audience as if
to say, “If you don’t like it, too bad.” The
depth of feeling is palpable. The sense of
music being created afresh with every
note would leave more diligent younger
pianists standing.
For all that, these performances were
not ideal. Barenboim used to play the D
Minor Concerto, No. 1, as if in an Olym-
pian fury. Now the drive has gone out of
it and the concerto seemed to wander,
not least because the Venezuelan
orchestra’s sound was too limited in
depth and variety to keep up the inter-
est at this speed.
The Second Concerto, in B Flat Major,
went better. The orchestral backdrop
was still raw, but Barenboim lifted the
concerto to a lofty vantage point, from
where he looked out over a vast, glow-
ing, romantic landscape.
The evening was worth it just for his
conjuring of multifarious trills,
resplendent, expressive, fevered, even
playful. Sixty years at the piano is
enough to make a magician.
southbankcentre.co.uk
Celebration:
Gustavo
Dudamel, far
left, with Daniel
Barenboim.
Right: Patty
Griffin on stage
at Sage
Gateshead
Belinda Lawley
Alan Harrison
Flotsam of a fictional affair
Whatisthemeaning—personal,
political,economic—ofcollecting?
InOrhanPamuk’snovelThe
MuseumofInnocence,thehero
Kemal,awealthysocialiteengaged
tosophisticatedSibel,collectsthe
flotsamandjetsam—anearring,
dress,cup,cigarettestubs—
memorialisinghisdoomed
romancewith18-year-oldshopgirl
Füsun.Beyondthepagesofthe
novel,theseitemsaredisplayedin
anactualMuseumofInnocenceset
upbyPamukinIstanbul.
NextWednesday,themuseum
beginsitsfirstvisittoLondonat
SomersetHouse. Thirteenvitrines
willgoonshow,filledwithobjects
summoningthecharacters’
physicalpresence—hairgrips,
toothbrushes,cologne—or
recountingtheirstoryorevoking
lifeinthe1970sIstanbulofthenovel.
SomersetHousewilladdfurther
description. Is she folk? Is she country?
Her latest album even references jazz
andnorthAfrica.
Yet on an icy north-east English night,
she brought a reminder that what lies
beneath her brand of Americana — this
slippery genre — remains commitment
tohonestsongwriting.
With her three openers we travelled
from gospel (“Move Up”) to blues
(“There Isn’t One Way”) to swing (“Gun-
powder”). But the trumpets and accor-
dions of Servant of Love, the album she
releasedinOctober,haven’tbeenpacked
for this trip. Instead, the restrained
accompaniment and hushed harmonies
of drummer Conrad Choucroun, bassist
Billy Harvey and guitarist David Pulk-
ingham allow Griffin’s taste for almost
mysticallyricismtoburstthrough.
This is a Grammy-winner who has
written songs for Emmylou Harris and
the Dixie Chicks. But some of her newer
songs seemed almost wilfully impene-
trable. Swapping guitar for Steinway to
play a couple of bare-boned ballads, she
introduced “Servant of Love” by
explainingonlythat“loveiselusive,butI
believeinit.”
In the heartbroken “You Never Asked
Me” she sang of an “exercise in catastro-
phe, it was a dance of destruction”. Grif-
fin wouldn’t be the first songwriter to
findinspirationinrelationshipbreak-up,
but she had too much grace even to
hint that this new material relates to
her recent split with former Led
Zeppelin frontman Robert Plant.
Tonight she seemed more bothered
by troublesome guitar tuning and
meta-layerstoPamuk’smodernist thechillofherchangingroom.
monument:archivalmaterial Having passed the age of 50,
aboutthemakingofthemuseum, Griffin admits she’s in a season of
manuscripts,andscreeningsof reckoning with disappointment
GrantGee’snewfilm“Innocence and disillusionment, but recovery
ofMemories”,whichrevisitsthe too. “I’m going to let it start
storythroughtheeyesofa again,” she sang (and
secondarycharacter. danced) with mandolin on
JackieWullschlager “Shine a Different Way” with
a joyful abandon that suggested
January 27 to April 3 optimism,notfear.
somersethouse.org.uk
Touring to April, pattygriffin.com

Dark farce in search of a physical dimension

THEATRE
Die Affäre Rue de Lourcine
Deutsches Theater, Berlin
aaaee
Ian Shuttleworth
The old joke “Where would we be with-
out a sense of humour? Answer: Ger-
many” is grossly unfair. Nevertheless, I
was curious to see how some contem-
plative Germans would handle a classi-
cal French farce, not least because it is
such a stylised genre and German thea-
tre is famously gung-ho about original
staging. In the event, the subject matter
of Eugène Labiche’s 1857 piece is unusu-
ally dark for farce; small wonder that it
drew the attention of Elfriede Jelinek,
whose 1986 translation is used here.
The driving force of the plot is not sex
but murder. Protagonist Lenglumé
(Michael Goldberg) wakes up in a fog
the morning after a boozy club dinner
and finds, first, a strange man in his bed
(Mistingue, a fellow diner) and, second,
that the newspaper reports a murder
committed near the dinner venue.
Furthermore, clues place the pair
firmly in the frame. Only 90 minutes
later does it become clear that the paper
is several years old; in the meantime,
Lenglumé and Mistingue go to the verge
of actual murder to try to conceal their
supposed guilt.
The air of hungover confusion is
given clever form by director Karin
Henkel and designer Henrike Engel,
who place the action on a revolving set
that shows the same room from three
different angles. (To make matters
more sombre, it is done out as a chapel
of rest.) At various moments, Lenglumé
or his wife is played by two actors at
once, and Justine the maid is tripled
throughout. Add the fact that Mistingue
often seems to be a kind of Mr Hyde
figure to Lenglumé, and you have
farce made flesh. Instead of the
standard bewildering plethora of
entrances and exits, we now have a
Chaos:
from far
left, Michael
Goldberg,
Anita
Vulesica and
Christoph
Franken in
‘Die Affäre
Rue de
Lourcine’
Arno Declair
chaos of sets themselves and of actors.
It’s a fascinating vision, and would
make for a brilliant production except
that it falls at the fence that so often hob-
bles farce: lazy physicality. Henkel
shows no understanding that crispness
of movement would increase both the
humour and the dark grotesquerie.
On opening night the funniest bit
of business was accidental, as over-
enthusiastic drinking led Christoph
Franken to wash his moustache free
from its moorings. A raft of excellent
ideas let down sadly in practice.
To March 4, deutschestheater.de

and it lives again with vibrancy. It is seated on stage, it appears to spring

DANCE
Ballett am Rhein
Theater Duisburg, Germany
aaaee
Gerald Dowler
Performance is the lifeblood of dance.
Without it, a ballet becomes nothing
more than another italicised name in the
history books. Antony Tudor’s Dark Ele-
gies is a work that cannot be allowed that
fate; it stands as one of the greatest
achievements in 20th-century dance.
However, as with all of Tudor’s works, its
moodisnotoriouslydifficulttocatch.
SettoMahler’sKindertotenlieder(Songs
on the Death of Children), Dark Elegies
explores the effects of unnamed grief
befalling a community. With unflinching
intensity it achieves a raw, emotional
truth in a fusion of ballet and expression-
istmovement.
Martin Schäpfler and his ensemble
have brought the ballet back to the stage,
staged with care and insight by Amanda
McKerrow and John Gardner, while Tho-
mas Ziegler’s new designs refresh but do
not reimagine the originals. The sense of
loss and devastation is palpable as the
dancers search for meaning; it is Camille
Andriot, strong and powerful, who is the
catalyst and leads them to stillness and a
final,collectiveresignation.
Dark Elegies lives within Mahler’s
music and, with baritone Dmitri Vargin
Unflinching intensity: ‘Dark Elegies’
directlyfromtheoutpouringofhissong.
Great music needs great choreogra-
phy, so the young Australian Terence
Kohler’s choice of Brahms’s Symphony
No. 1 for his new work One says some-
thing about his self-confidence. The
Duisburg Philharmonic treat the music
with the passion and vigour it requires,
but Kohler’s conviction that he can
matchBrahmsprovesmisplaced.
He is certainly not short of ideas, with
a dizzying array of 21st-century tropes
pulled into service, but his musicality is
literal, movements matching every
rhythmic pulse, and his ensemble work
looks messy, the stage overfilled with
dancers in ugly body-stocking camou-
flage. The fourth movement sees Kohler
seemingly give up as a choreographer.
The dancers each ascend a ladder to dis-
appear over Verena Hemmerlein’s mon-
umental grey block set and leave the
stage empty while the symphony swirls
to its conclusion. Brahms one, Kohler nil.
To April 16, ballettamrhein.de
12 ★ FINANCIAL TIMES Tuesday 19 January 2016

Go west 160
Chinese acquisitions Chinese companies
By announcement date ($bn) 140 spent over $500bn
buying international
120 assets in the past
decade. Offshore bonds
Chinese acquisitions in the USA 100
Twitter: @FTLex Email: lex@ft.com issued also increased,
Total Chinese cross-border acquistion contributing funds to
80 the buying spree which
China offshore bond issuance peaked last year at
60 $112bn. The current
Poland downgraded: in the UK, likely to slash the funding of year is off to a racing SoftBank/Sprint:
the opposition Labour party. Poland’s 40 start with over $12bn
zlot machine new government offends the spirit of in deals announced in
step up
democracy that (supposedly) animates 20 the first 15 days
A global financial crash couldn’t do it, the European project. That does not It was not supposed to be this way.
nor Europe’s sovereign debt crisis. Yet mean Poland’s credit risk increases. 0 SoftBank, the Japanese technology and
on Friday, Poland’s credit rating was 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 telecoms group, had a plan to become
cut by Standard & Poor’s, the country’s Six largest Chinese cross-border acquisitions on record the world’s largest company. To further
first downgrade since 2007. The Three-O2: that aim, in July of 2013 it bought four-
Announced Target Acquirer Deal Value ($bn)
reason? Its ultra-conservative fifths of Sprint, the US mobile operator.
government, led by the Law and Justice kind of a big deal Jul 2012 Nexen CNOOC 18.2 The honeymoon lasted six months:
(Pis) party, is using a big mandate to Feb 2008 Rio Tinto (12%) Aluminum Corp of China, Alcoa 14.3 Softbank’s shares peaked in December
tamper with the state broadcaster, civil BT Group’s £12bn acquisition of EE Jun 2009 Addax Petroleum China Petrochemical Corp 9.0 that year. Yesterday they dropped 8 per
service and constitutional court. grabs the headlines in the UK, for good Mar 2015 Pirelli China National Chemical Corp - CNCC 9.0 cent, to hit levels not seen since pre-
Clearly, S&P has made a political reason. It is big, other operators want Dec 2015 Nanyang Commercial Bank* China Cinda Asset Mgmt 8.8 Sprint days. Sprint was behind the fall.
judgment. It acknowledges Poland can the national incumbent BT broken up Oct 2010 Repsol Brasil (40%) China Petrochemical Corp 7.1 On Friday, its shares shed one-tenth
*Transaction is pending
finance itself domestically in its own rather than expanded — and football is FT graphic Source: Dealogic following a press report that outlined
currency, has moderate (50 per cent of involved. Yet Three’s slightly smaller cost cutting plans.
GDP) debt levels, and reasonable proposed buyout of Telefónica’s O2 is Such cuts were hardly unexpected.
growth potential. None of the much more important to European An ordinary Chinese citizen who Syngenta AG. Just a few weeks into and other nations have become Late last year, Sprint said it would
government institutions under attack telecoms. Hopes for further industry wishes to buy assets abroad can 2016, $12bn of Chinese outbound M&A tolerant of Chinese ownership. shave $2bn from operating costs in
bears directly upon its ability or consolidation hang on its completion. exchange only enough renminbi in a has been announced — a pace that, if Chinese buying of foreign 2016; the $1bn outlined is within that
willingness to repay its debts without Europe’s competition body, headed year to get $50,000. Fortunately for maintained, would shatter last year’s companies does not always mean scope. So the share price drops look
devaluing its currency. Odious and by Margrethe Vestager, will soon give deal-hungry Chinese companies, they record of $112bn. The interest of renminbi leaving the country. They overdone. The problem lies in the
undemocratic governments (consider Three — owned by Hong Kong’s CK do not suffer the same constraints. Chinese companies abroad is natural. may have foreign currency available nature of the cuts, which are said to
General Augusto Pinochet’s Chile) may Hutchison — its views on this deal. This On Friday, Haier bought the As the country has prospered, its for M&A, or can raise money abroad. include measures to reduce Sprint’s
well pay their dues. Yet, the zloty has list of objections is likely to spook the General Electric appliance business companies have grown large enough to For Chinese companies using their reliance on the fixed-line networks of
fallen to its lowest level against the market, at least initially. Last summer for $5.4bn in cash. Dalian Wanda, chase big targets in more mature home currency, however, local banks competitors AT&T and Verizon. Last
euro since mid-2013, and Poland’s bond Ms Vestager stated that she has yet to earlier in January, acquired film markets. Their ability to apply lower and the State Administration of year, Sprint also said it would not
yields have suffered their sharpest rise see the benefits of consolidation. studio Legendary Entertainment for operating costs has also enabled them Foreign Exchange have remained invest in new spectrum.
in two years. When in September Norway’s $3.5bn after sniffing around to write bigger cheques. supportive of dealmaking for Such moves are risky. In a highly
It is a mistake to treat all heresies as Telenor and Sweden’s TeliaSonera Hollywood for years looking for A decade ago, political and strategic assets. Some dealmakers competitive consumer industry where
the same. To justify its action, the decided not to contest her objections to content (in 2012 it grabbed cinema regulatory resistance based on national note that the country could change T-Mobile has leapfrogged Sprint to
rating agency needs a variant on the merging their Danish subsidiaries, the chain AMC Entertainment for $3bn). security concerns was strong (consider its tune at any moment, as erratic become the third largest operator by
slippery-slope argument. Attacks upon mood soured toward European A Chinese group has jumped into the failed bids for Unocal, Dubai World monetary policymaking since last subscriber numbers, this hardly seems
institutions created to defy the telecom companies. Not for long: the bidding war for Fairchild Ports and 3Com). And while concerns summer indicates. the time to be making decisions that
executive can be habit-forming; they MSCI European Telecoms index Semiconductor. And most brazenly, linger, Chinese companies have But for companies looking to sell, might jeopardise service. The cuts
may start with the media but soon the bounced back a month later. Indeed, ChemChina is reportedly considering become much more sophisticated the most capable and confident would also be out of sync with
National Bank of Poland could be in the over the past four months it has an all-cash bid worth SFr35bn for about navigating foreign deal processes buyers are coming from the east. Softbank’s original grand plans, which
line of fire. Put another way, if your outpaced the broader European included providing a “vibrant” and
ultimate intention were to undermine market, led by big incumbents such as “innovative” competitor. It is hard to
monetary credibility, first you would BT Group and Orange. see how SoftBank can reach this
neuter bodies such as the constitutional Perhaps the market still believes in could also have problems should Ms It is a steady, profitable grower. the gap is just four. The market has aspiration — or even protect market
court that might stand in your way. consolidation to come. Three argues Vestager insist on the right of review. It For years the market couldn’t get withdrawn the credit once granted for share — without increased investment.
However, there is no sign — yet — of that there is nothing to fear but fear all starts with Three-O2. enough of this, despite recent managing the online transition. Sprint by itself does not have capital
Pis manoeuvring to weaken the NBP, itself: moving from four to three deceleration in like-for-like sales and The suspicion that the rout is to commit. The company’s net debt is
although the reappointment of eight competitors has not hurt consumers in softening margins. Then, suddenly, the overdone is compounded when one 1.5 times its equity, and it is burning
members of its nine-person monetary Ireland, Austria or Germany. Williams-Sonoma: mood turned. The stock’s price has sees Williams-Sonoma is not alone. through cash. In the six months to
policy council provides an opportunity Meanwhile, only a larger company — fallen 40 per cent since August and its Two other store retailers that have September, gross cash balances were
to give it a dovish tilt. Its fiscal Three with O2 would leapfrog EE and pressure cooker price-to-earnings ratio from 24 to 14. shone online, furniture merchant $2bn, half the previous year’s level. If
measures look more straightforwardly Vodafone to be the largest UK operator The change in fundamentals does not Restoration Hardware and high-end Sprint is to recover it needs money
worrying. A new tax on banks and — can hold its own against an Williams-Sonoma may have navigated look nearly so dramatic. In its department store Nordstrom, with half from its parent. SoftBank may not
insurers will weaken the financial incumbent adding a 4G mobile the transition from physical stores to November quarter, sales grew 5 per and a fifth of their sales online think this desirable or necessary. It has
sector, and reversing rises in the age of network to a fibre broadband network. online better than any other US cent, against 9 per cent in the same respectively, have suffered similarly. been buying more Sprint shares to
retirement will stall progress towards a After Ms Vestager’s report and any retailer. It sells fancy cooking kit to the period a year before; a distinct but not This brutality shows how hard it is to demonstrate its commitment to the
lower fiscal deficit. Yet there is nothing attendant negative headlines, Three affluent — copper-bottomed crêpe pan screeching slowdown. own even a well-run company that is company’s turnround. A more tangible
to suggest creditors’ interests are being will have time to rebut and offer for $290? — and half its sales are It is instructive to compare Williams- wrestling with a big secular trend. Any signal would be to bankroll Sprint’s
marked down sufficiently to justify this remedies. If Three cannot convince her, online. It is in the happy position of Sonoma’s valuation to Macy’s, a mid- sign of weakness and all the market operations more directly.
downgrade. though, Three Italia’s separate selling goods that people will happily tier department store where sales are immediately focuses exclusively on the
It is in all political parties’ DNA to proposed £17bn deal with Wind looks buy without touching first, and, at falling rather than decelerating and deep uncertainty of the future of retail.
use their time in power to further their suspect. Another key consolidation — the same time, despite selling which is weaker online. Six months And rightly so; it is deeply uncertain. Lex on the web
For notes on today’s breaking
own interests; witness the trade union France’s Orange buying Bouygues products that are available elsewhere, ago, Williams Sonoma’s P/E ratio was Just because the market is jittery does stories go to www.ft.com/lex
bill being pushed through parliament Telecom (worth perhaps £8bn) — it has avoided withering price fights. at an 11-point premium to Macy; now not make it irrational.

Today’s temperatures
1010
Abu Dhabi Sun 27 Malta Fair 14
-11 Amsterdam Fair 2 Manila Fair 31
HIGH Ankara Snow 0 Miami Fair 18
-7 Athens Sun 8 Milan Sun 5
-10 -8
1000 Bahrain Sun 22 Montreal Snow -9
34 Barcelona Fair 13 Moscow Snow -8
2 Beijing Sun -2 Mumbai Sun 28
LOW
LOW Belfast Drizzle 7 Munich Cloudy -4
7 Belgrade Sun 0 Naples Drizzle 7
-5 -6 Berlin Fair -1 New York Fair 0
-1 29 Brussels Sun 0 Nice Cloudy 10
4 Budapest Sun 0 Nicosia Sun 13
1 -4 Cairo Sun 16 Oslo Sun -7
Cardiff Fair 4 Paris Cloudy 3
3 0 Chicago Fair -7 Prague Sun -6
2 1010 Cologne Sun 0 Reykjavik Fair 2
LOW -8
Copenhagen Snow 0 Riga Snow -4
11 6 1020 Delhi Fair 20 Rio Rain 25
9 0 Dubai Sun 26 Rome Fair 10
17 Dublin Cloudy 7 San Francisco Thunder 16
1020 10 Edinburgh Cloudy 4 Singapore Thunder 31
15 9 7 Frankfurt Sun -1 Stockholm Cloudy -6
15 8 LOW
LOW Geneva Cloudy 4 Strasbourg Cloudy 1
13
Hamburg Snow -1 Sydney Sun 29
Helsinki Cloudy -11 Tokyo Sun 10
16 16 10 14 Hong Kong Fair 17 Toronto Fair -4
Istanbul Fair 2 Vancouver Cloudy 9
19
15 1020 Lisbon Cloudy 15 Vienna Fair 0
Wind speeds in KPH London Fair 4 Warsaw Cloudy -5
Forecasts by Los Angeles Cloudy 18 Washington Sun -1
Wind speed Luxembourg Fair -1 Zagreb Sun 2
in KPH Madrid Fair 9 Zurich Snow 2

CROSSWORD
No. 15,141 Set by PHSSTHPOK
        ACROSS
1 Creates wide bridges on both
sides (6)
  5 Forcibly silence alien trapped
by rent control (3,1,4)
9 Time engaged in puzzle with
  unending passion leads to
congratulations (8)
10 Retailer’s profits, according to
 
rumour, were unlimited (6)
11 Points to churches that
    pervade odd parts of Leeds
(8)

12 Recoil from black cat (6)
13 Butterflies eat less tailless
seafood in captivity (8)
  15 Colours are dead right (4)
17 Specimen from tiny pine
lacking in content (4)
  19 Profit ran out here?
Impossible! (8)
20 Sea horse in fragments (6)
  21 Rubber and pencil-sharpener
Poe normally used for quoting
back (8)
22 Vibration left out by hat (6)
Yesterday’s crossword had the right grid but the wrong set 23 Mary and Luke interpreted
of clues. The correct puzzle is on the FT website. sign of religious devotion (8)
We apologise for the error. 24 Together in this love for piece
of music (8)
Solution to Saturday’s prize puzzle on Saturday January 30
Solution to yesterday’s prize puzzle on Monday February 1
Winners’ names will be printed in Weekend FT
25 Loving pet can be kept inside
(6)
DOWN
2 Using newly manufactured
rest, play medieval instrument
(8)
3 Reports failures to climax in
the holidays (8)
4 Gets used to square vice (7,2)
5 Distributes funds (5,8,2)
6 Where flight attendants
prepare to let the wine
breathe? (7)
7 Deposit money in bank not
long ago (8)
8 Warped by poetry (8)
14 Fascinated by eccentric
demeanour (9)
15 Arrogant to cheat chess
expert at one chess opening
(8)
16 I was absorbed by poet before
coming up for air (8)
17 Cut passage that is filled with
weeping (4-4)
18 Sounds like Cockney is
overreacting to cup (8)
19 Base in globe is broken (7)
Tuesday 19 January 2016 ★ 13

Renault Glencore Sports Direct Xetra Dax Brent crude Dollar/Yen Copper (LME) Shanghai
Home truths Why it’s time to Composite
tackle unaffordable housing 1.3% 2.2% 4.7% 0.3% 0.8% 0.3% 1% 0.5%
PATRICK JENKINS, PAGE 14
€74.17 75.15p 390p 9,521.85 $28.71 ¥117.36 $4,375 2,914.89

Adidas brings Long-term bet Suncor Energy’s $4.4bn takeover

of Canadian Oil Sands reflects faith in recovery
Short
View
in outsider to Jonathan
Eley
follow veteran Small-cap shares are like the girl with the curl in the nurs-
ery rhyme: when they are bad, they are horrid. Most inves-

chief executive
tors have probably forgotten the rhyme and may have sim-
ilarly hazy memories when it comes to the shares.
Small-caps have had a terrific run: over the past 15 years,
across 29 markets tracked by Elroy Dimson at Judge Busi-
ness School and Paul Marsh at London Business School,
they have outperformed large-caps by an average of more
than 5 per cent a year. But in 2015, US small-caps did worse
Shareholders upbeat but questions than large-caps. Could this presage another long period of
underperformance, like the one between 1984 and 1997?
remain over future of brand portfolio It would help if we understood what caused last year’s
divergence. The chart below uses MSCI data but plotting
the Russell 2000 and the S&P 500 gives the same result.
JAMES SHOTTER — FRANKFURT should keep all of its portfolio of brands. Small and large-cap returns parted ways in earnest during
“The absolute priority for Rorsted the fourth quarter. That coincided with growing market
Adidas has ended its year-long hunt for will be to improve Adidas’s profitability, conviction that the Federal Reserve was set to raise US
a new chief executive by poaching Hen- they have to get their margins up,” said interest rates. Separate research by Professors Dimson and
kel boss Kasper Rorsted to succeed its Mr Speich. “The good thing is that he Marsh suggests that small-caps underperform when rates
veteran leader, Herbert Hainer. has experience of carrying out exactly are rising; perhaps investors were pre-emptively taking
Mr Rorsted — who will be succeeded this sort of optimisation at Henkel. risk off the table. That would tally with the oft-observed
at consumer product group Henkel by “In conjunction with that, he will also decline in US index breadth (the proportion of stocks that
Hans van Bylen — will join Adidas’s have to decide whether he wants to keep are rising) during 2015; investors retreated into familiar
executive board at the beginning of Reebok and all of the golf brands. And he mega-caps such as Facebook and Google.
August before taking over the top job at will also have to work out how to turn Yet eight other markets also saw small-cap underper-
the beginning of October, Adidas said. around their business in North America, formance in 2015. Rates rose in only two of them (South
Shares in the German sportswear wheretheyarestillplayingcatch-up.” Africa and Brazil). In four, they remained unchanged. In
group leapt almost 11 per cent after the Adidas has been seeking to recover another two (Canada and Norway) they fell. So maybe
announcement yesterday morning ground after it lost its second place in there is more to it than macroeconomic risk.
before falling back, and investors were the market to Under Armour last year. Relative sector exposure is another possible factor. Nick
quick to give their support to the Speaking to the Financial Times last Price at Fidelity points out that biotech shares, which have
appointment of the 53-year-old Dane, month, Robin Stalker, chief financial fallen a third since September, account for 14 per cent of
who has run Henkel since 2008. The officer, said Adidas was not facing pres- the Russell 2000 index against 4 per cent for the S&P 500.
shares closed up 6.25 per cent at €89.26. sure to trim its portfolio beyond the sale In the UK, small-caps grew only 5.6 per cent (in price
“It’s a very, very good decision,” said of footwear brand Rockport, and the terms), but that was plenty enough to beat an FTSE All-
Ingo Speich, a portfolio manager at Adams and Ashworth golf labels. Share index full of laggards like miners and oil majors.
Union Investment, which is one of Adi- But stakebuilding by three big activist Most comfortingly for investors, small-caps’ relative
das’s 20 largest shareholders. “Coming shareholders — US investor Mason returns are inherently volatile. An indifferent year can be
from Henkel, Mr Rorsted has experience Hawkins, Belgium’s Albert Frère and followed by another, but is just as likely to be followed by a
of the consumer goods business. He has the Egyptian billionaire Nassef Sawiris glorious one. This is truly an area where time in the market
worked internationally, but speaks Ger- — has prompted speculation that they is likely to prove more profitable than timing the market.
man, which is a perfect combination. could push Adidas to offload other low- High-cost output: operations at Suncor’s plant in the Athabasca Oil Sands, Canada — Brett Gundlock
And he is personally pretty dynamic, performing assets.
which you need if you are going to The departure of Mr Hainer marks Divergence: US large-caps
embodyasportsbrandlikeAdidas.” the end of an era for Adidas, which has ROBERT WRIGHT — NEW YORK many projects commercially the largest stakeholder in Syn- beat small
Mr Rorsted’s appointment brings to been run by the Bavarian since 2001, unviable as the crude oil price crude, a bitumen mining and Indices rebased
Canada’s Suncor Energy yes- MSCI US Small-cap
an end a search launched last February, making him the longest-serving chief continues to plumb the depths. upgrading joint venture in 110
terday finalised a C$6.6bn MSCI US Large-cap
after a difficult 18 months for Adidas executive in Germany’s blue-chip index. Analysts have said Suncor’s Alberta’s Athabasca oil sands
($4.4bn) takeover of Canadian 105
during which it was forced to issue two Igor Landau, chairman of Adidas’s interest in COS reflects the region.
Oil Sands, in a deal that will
profits warnings and lost ground on its supervisory board, thanked Mr Hainer company’s long-term bet that Suncor finalised the all-stock Small-caps last
make it the biggest company 100
US rival, Nike, in the battle for domi- for his time at the helm, pointing out prices will recover and make takeover by raising its bid to year showed when
operating in one of Alberta’s
nance of the global sportswear market. that the sportswear group had grown oil sands competitive again 0.28 of its shares for each COS 95 they are bad they
main oil sands operations.
Adidas had a better run last year, and dramatically under his tenure. “Under against lower-cost producers, share. It had previously offered are horrid and
said in November that it expected its net his leadership, Adidas Group sales have The takeover comes at a time particularly countries in the 0.25 of its shares. 90 underperformed
profit for 2015 to be 10 per cent higher tripled, net income and the number of when producers in Canada’s oil Middle East. Suncor outlined its initial bid Jan 2015 Dec large-caps in
than in 2014. Investors remain con- employees have quadrupled, and the sands face significant financial Suncor is the largest operator in October, and disclosed it had Source: Thomson Reuters Datastream several markets
cerned it is not as profitable as it should value of the company has increased pressure because their high in Canada’s oil sands region. made its first approach to COS
be, however, and debate whether it from €3bn to €18bn,” he said. operating costs have made Buying COS will make Suncor in March. jonathan.eley@ft.com

Insurers invest $1bn in tech start-ups

and attempt to reap digital dividends
OLIVER RALPH smartphone app that helps people to Insights. By November, start-up invest-
INSURANCE CORRESPONDENT
locate empty parking spaces. ments by insurers were 43 per cent
Some of the world’s biggest insurers Analysts said insurance has lagged higher than the whole of 2014 and 725
have committed more than $1bn to behind other parts of the financial serv- per cent ahead of 2013.
investing in technology start-ups as the ices sector when it comes to digital “The priority is financial return,” said
industry attempts to catch up with investment, but add that interest has Eric Emmons, managing director at
other parts of the financial services sec- picked up sharply in recent months in a MassMutual Ventures. “We’re running a
Investors underwhelmed tor and boost profitability. bid to stay competitive and harness big for profit venture capital firm. Once
by pharma opportunities data analytics. companies are in the portfolio, we’ll do
European insurers such as Axa, Aviva François Robinet, chairman of Axa what we can to make our colleagues at
Bankers and lawyers have tried to put and Allianz, along with MassMutual and Strategic Ventures, said: “We’ve been MassMutual aware of them.”
a positive gloss on tumbling biotech American Family in the US and Ping An investing a lot in digital and encouraging Data have been a big focus for invest-
and pharmaceuticals valuations, in Asia, have all set up specialist venture people to be innovative, but it is also ment. Mr Robinet added: “Big data is a
saying the recent market sell-off could capital funds dedicated to investing in important to capture innovation exter- buzzword that is thrown around a lot.
spark a fresh wave of M&A. But there start-ups that may be relevant for their nally.” The Axa fund initially started in “As an insurer, all we create is data
is a growing sense that investor core businesses. France with €10m to invest but now has and a lot of energy has gone into using it
appetite for large deals is waning. The latest deal will be announced this €230m to put to work globally. better not just to drive customer cen-
Analysis iPAGE 15 week, with Aviva and other investors Last year was a record one for such tricity but also to underwrite better.”
putting £1m into AppyParking, a deals, according to research firm CB Aviva’s ‘digital garage’ page 18

Companies / Sectors / People

Companies
21st Century Fox................................18,18
AMC Entertainment...............................12
AT&T..............................................................12
Aberdeen Asset Management.......24
Accenture....................................................10
Adidas.............................................................13
Alibaba...........................................................14
Allianz.............................................................13
Allianz ...........................................................18
Amazon.........................................................23
Amec Foster Wheeler...........................23
American Family......................................13
Anglo American.......................................24
Ant Financial..............................................14
Apple..............................................................23
Aviva...............................................................18
Aviva ..............................................................13
Axa...................................................................13
BP.....................................................................23
BT Group......................................................12
BTG Pactual...............................................14
Banca Monte dei Paschi.....................14
Bank of America......................................23
Bank of China Group Invest.............14
Barclays...................................................14,23
Bouygues Telecom.................................12
CK Hutchison.............................................12
Canadian Oil Sands................................13
Capgemini....................................................18
Cargill.............................................................22
Casino.............................................................14
Celgene..........................................................15
Citi.......................................................................1
Credit Suisse.................................................1
DCC.................................................................23
Dalian Wanda.............................................12
Deutsche Bank.............................................1
Deutsche Börse........................................22
EDP..................................................................10
Eli Lilly...........................................................15
Endemol Shine..........................................18
Facebook................................................18,23
FedEx.............................................................23
Fairchild Semiconductor.....................12
Fosun..............................................................14
General Electric..................................12,23
General Motors.........................................16
Generali....................................................13,18
Glencore...........................................16,23,24
Goldman Sachs...................................14,23
Google......................................................13,23
Guotai Junan Securities......................14
HSBC..............................................................23
Haier................................................................12
Henkel............................................................13
ITG Europe.................................................22
ITV....................................................................18
Ingenico.........................................................16
Instagram.....................................................18
JPMorgan........................................................1
Jimmy Choo................................................18
KAZ Minerals............................................24
Legendary Entertainment..................12
Liberty Global............................................18
Liquidnet......................................................22
London Stock Exchange....................22
Lufax...............................................................14
MassMutual...........................................13,18
MetLife.....................................................13,18
Metersbonwe.............................................14
Michael Page.............................................14
Minsheng Bank.........................................14
Mitsubishi....................................................22
Morgan Stanley........................................23
Morrisons.....................................................10
Netflix............................................................23
Nike..................................................................13
Noble Group...............................................16
Nordstrom....................................................12
Options Group..........................................14
Orange...........................................................12
PTC Therapeutics...................................15
Ping An....................................................13,14
Rallye..............................................................14
Renault..........................................................16
Restoration Hardware..........................12
SABMiller.....................................................22
Sarepta Therapeutics...........................15
Schlumberger............................................23
Shire..........................................................15,23
SoftBank........................................................12
Southwest Airlines.................................23
Sprint..............................................................12
Standard Chartered..............................24
Starbucks.....................................................23
Suncor Energy...........................................13
Syngenta AG..............................................12
Telefónica.....................................................12
Tencent.........................................................14
Trafigura.......................................................16
UBS..................................................................14
Valeant...........................................................15
Vedanta Resources.........................23,24
Verizon...........................................................12
Vitol.................................................................16
Volkswagen.................................................16
WeChat..........................................................18
WhatsApp....................................................18
Williams-Sonoma......................................12
Wind................................................................12
Worldpay......................................................16
Sectors
Automobiles...............................................16
Banks..............................................................14
Basic Resources.......................................16
Financials.....................................................14
Insurance......................................................18
Media..............................................................18
Oil & Gas........................................................2
Pharmaceuticals.......................................15
Retail & Consumer............................13,14
Technology.................................................16
People
Brem, Andrew............................................18
Cheng-mount, Cheng...........................22
Chengjian, Zhou.......................................14
Cryan, John....................................................1
Elman, Richard..........................................16
Emmons, Eric.............................................13
Featherstone, Jane.................................18
Guangchang, Guo...................................14
Hainer, Herbert.........................................13
Halal, David.................................................15
Hincks, Tim.................................................18
Hugin, Robert............................................15
Karp, Mike...................................................14
Koskas, Thierry.........................................16
Koum, Jan....................................................18
Kuisheng, Ji................................................14
Landau, Igor................................................13
Lazare, Philippe........................................16
Levine, Marne............................................18
Mahon, Alex................................................18
Malone, John..............................................18
Murdoch, Elisabeth................................18
Murdoch, James.......................................18
Murdoch, Lachlan....................................18
Murdoch, Rupert......................................18
Robinet, François.....................................13
Rorsted, Kasper........................................13
Staley, Jes....................................................14
Stalker, Robin.............................................13
Turner Laing, Sophie............................18
Vacheron, Pierre-Antoine...................16
Viola, Fabrizio............................................14
Walsh, Nigel................................................18
van Bylen, Hans.......................................13

© The Financial Times Limited 2016 Week 3

14 ★ FINANCIAL TIMES Tuesday 19 January 2016

COMPANIES
INSIDE BUSINESS
Financials
FINANCE

Shanghai P2P lender Lufax raises $1bn Patrick

China venture targets
growth in market where
banks fail to meet demand
GABRIEL WILDAU — SHANGHAI
Lufax has completed a fundraising it
says values the Chinese peer-to-peer
lender at $18.5bn as investors bet on
non-traditional lending in a market
where banks have failed to meet
by assets, said it raised more than origi-
nally planned.
Financial technology has been a mag-
net for investment in recent years. A
report by PwC and the National Venture
Capital Association, based on data from
Thomson Reuters, said funds invested
in financial services in 2015 nearly tri-
pled compared with the previous year.
Analysts believe growth potential is
especially strong in China, where the
financial system remains dominated by
growing but unruly sector. Almost
2,600 platforms are in operation, with
Rmb439bn ($66bn) in loans outstand-
ing at the end of last year, up from
Rmb104bn in 2014, according to Online
Lending House, a website that tracks
the industry.
Ji Kuisheng, Lufax chairman, said: “In
the future, whether it’s internet finance
or traditional finance, whoever can best
combine technology and finance will be
the one to succeed.”
Jenkins
petition from several Chinese internet
heavyweights that have expanded into
finance, including Ant Financial, an
affiliate of Alibaba, and Tencent, both of
which launched online banks last year.
UK policymakers
‘In the future,
Lufax said it would use the new fund-
ing to speed development of its lending
need to shake up the
whether it’s
internet or
platform and diversify into wealth man-
agement. It also wants to expand cross-
border business and increase its ability
mortgage market
traditional at packaging loans.
Among P2P lenders, Lufax ranked
finance,

demand.
Shanghai-based Lufax raised $1.2bn
from investors including Bank of China
Group Investment, Guotai Junan Securi-
ties Hong Kong and a unit of Minsheng
Bank, according to a statement.
A funding round in April raised
$500m at a $10bn valuation. Launched
in 2012, Lufax, controlled by Ping An
Insurance, the country’s largest insurer
Banks
state-owned banks that prefer lending
to state-owned industrial groups with
plenty of collateral. Smaller Chinese
groups struggle to obtain loans, while
consumer finance remains an infant
industry. KPMG, the professional serv-
ices firm, said in December that seven of
the world’s 50 top fintech groups were in
China, up from only one a year earlier.
Online lending has emerged as a fast-
But hundreds of P2P lenders have
already collapsed or seen their owners
flee with investor funds. The central
bank issued guidelines in July intended
to tighten regulation of internet finance
and reduce risks. New regulation is
expected to benefit larger platforms run
by established groups. Lufax, whose full
name is Shanghai Lujiazui International
Financial Asset Exchange Co, faces com-
Banks. Incentives
M
second by transaction over the past 30
whoever can days with Rmb4.1bn in transactions,
best combine said Online Lending House. Topping the
table is Hongling Capital, launched in
technology 2009, which hosted Rmb7.6bn in trans-
and finance actions during the period. But Lufax
will be the leads the industry by loans outstanding
at Rmb35bn, suggesting it focuses on
one to loans with longer maturity.
succeed’ Additional reporting by Ma Nan
ortgages that extend over 35 years for first
time buyers are now quite normal in the UK.
Such loans may even overtake the more tra-
ditional terms of 20-25 years if current pat-
terns continue.
All else being equal, it is an odd trend. Interest rates
remain at record lows so it should be easier to afford a
shorter tenure for your borrowing. On a standard repay-
ment mortgage, the same budget for monthly mortgage
payments would allow you to pay off capital quicker when
rates are low than when they are higher.
But of course all else is not equal. The cost of the average
home jumped again last year by more than 6 per cent, and
in London by more than 11 per cent. To cope, home buyers
are borrowing higher sums over longer periods. For the

Monte dei same monthly repayment, you can fund a 20 per cent big-

Paschi falls Bonuses cut to retain next generation ger mortgage if you borrow over 35 years instead of 25. (A
£100,000 loan would cost £523 a month, assuming a cur-
rently typical 3.92 per cent interest rate over a 25-year
term. Paying the same interest rate over 35 years, you

on loan fears could afford a £120,000 loan.)

RACHEL SANDERSON — MILAN
Concerns about the €40bn of non-
performing loans on the balance sheet
of Banca Monte dei Paschi di Siena
reduced the market capitalisation of
Italy’s third-largest lender by assets to
€2.2bn as its shares hit a record low.
Led by Monte dei Paschi, shares in Ital-
ian banks fell sharply amid predictions
of a tough year for the sector as an esti-
mated €330bn in NPLs and low interest
rates weigh on profitability.
JPMorgan analysts Kian Abouhossein
and Delphine Lee in a note published
this month urged investors to “avoid
Italy” as some hopes for mergers and
acquisitions among mutual banks were
offset by margin pressure and bad loans.
Monte dei Paschi, which was the
worst loser of the 2014 EU bank health
check and raised €3bn less than a year
ago, has lost 50 per cent of its value since
the end of October amid widening con-
cerns about its future. Under pressure
from EU regulators, the bank admitted
more than a year ago that it cannot
remain independent, but it has so far
failed to find a takeover partner.
Bankers say the primary concern for
the institution — which has also
deterred potential buyers — is NPLs
worth nearly 100 per cent of its tangible
equity. BTG Pactual, the Brazilian bank,
has cut its 2 per cent stake in Monte dei
Paschi in the past weeks.
Bankers say concerns about new bail-
in rules which came into force on Janu-
ary 1 are also giving rise to market jit-
ters. “It is a perfect storm for Monte dei
Paschi,” said one senior banker.
Italy’s banks required no state bailout
during the financial crisis, with the
exception of Monte dei Paschi. But the
EU sovereign crisis followed by a three-
year recession has created a problem of
bad loans as small and mid-sized busi-
nesses, which make up the backbone of
the economy, have struggled. Italian
banks have NPLs worth about a fifth of
Italy’s gross domestic product, accord-
ing to the International Monetary Fund.
Italy’s government has tried to allevi-
ate the banking sector’s NPL problem by
getting Brussels to agree that the state
can guarantee a minimum price for the
sale of NPLs as a means to encourage a
private market. But Rome has so far
failed to gain an EU green light.
Fabrizio Viola, Monte dei Paschi chief
executive, said the results of the latest
EU bank stress tests confirmed “the eco-
nomic and financial stability of the
bank” and there was no reason, based
on the bank’s operational performance,
to justify the share price plunge.
Shares in the 543-year-old Monte dei
Paschi were suspended yesterday, end-
ing down 14.8 per cent at €0.77.
Some directors are trimming
their own pay packages to
reward junior talent instead
LAURA NOONAN AND ALISTAIR GRAY
LONDON
As big banks work out how to carve up
their diminished bonus pools, a key
issue confronting management is how to
nurture less experienced but important
staffers who might otherwise be
tempted to defect.
Mike Karp, New York-based chief
executive of the executive search firm
Options Group, says: “In situations
where bonus pools have decreased, jun-
ior people are usually insulated from
large compensation declines.” There
was a “lack of supply of people with
about five to seven years’ experience”
that banks need to hold on to, he added.
It is an issue complicated by the pres-
sure on bonus pools this year. Credit
Suisse’s CEO Tidjane Thiam laid the
ground for big cuts at his bank with a
January 13 speech in Paris where he said
the pay model for investment bankers
“does not work”.
Bank insiders say the bonus pool will
be cut by more than 30 per cent at Credit
Suisse’s new Global Markets and Invest-
ment Banking & Capital Markets divi-
sions. Cuts will fall heaviest in areas that
Credit Suisse is pulling back from such
as leveraged finance, while standout Closing the gap:
performers will enjoy bonus increases. Deutsche Bank’s
Barclays is also cutting back its invest- new boss John
ment bank, but new CEO Jes Staley is Cryan has been
not expected to take the same stance on sceptical about
bonuses as Mr Thiam and Mr Cryan. the bonus
UBS, which had a big restructuring in culture in banks
2012 and is far less exposed to trading, is
not expected to make big bonus cuts.
Paul Sorbera, president of the New
York financial recruiters Alliance Con-
sulting, estimates that bonus payouts
across Wall Street are down 10 per cent.
He believes juniors will defy the slump
even in the under-pressure fixed
income, currencies and commodities
businesses which are at least holding
Doing the In fixed income, managing directors
maths command average salaries between
£200,000-£350,000 with bonuses of
Spreading 100-200 per cent, according to data
the riches from City recruiter Michael Page. Their
through analysts, with one to three years of
the ranks experience, are paid an average of
of salary £45,000-£80,000 with a bonus of
earners 30-100 per cent. The gap is similar in
other parts of investment banks.
That means that an MD could raise
his juniors’ bonuses by more than 20
per cent by allocating a quarter of his
own bonus among 18 of his juniors,
assuming the MD and the juniors were
both earning salary and bonus at the
lower end of the range. Laura Noonan
their remuneration steady, he said,
while their seniors endure sharp cuts.
In an attempt to keep staff, banks
have unveiled a host of initiatives to dis-
suade fed up under-30s from defecting
to trendier industries such as technol-
ogy or more lucrative employers such as
hedge funds and private equity groups.
In November, Goldman Sachs even said
it would promote juniors faster.
With relatively inexperienced staff
paid a few hundred thousand dollars a
year, banks need not pay millions to
retain them. Employers are also mind-
ful of the future, Mr Karp adds. “You
have to pay your staff generously at that
level. They could be the next generation
of superstars.”
Bankers on both sides of the Atlantic
saw sharp fall offs in their pay in the
immediate aftermath of the financial
crisis, as losses and bailouts mounted
and a public outcry at a system that
rewarded bankers with multimillion-
dollar bonus payments for taking risks.
Things have stabilised over the past
few years in the US, where the five big
banks — JPMorgan, Goldman, Citi, Bank
of America and Morgan Stanley — held
pay and benefits steady in 2014, despite
a 1.36 per cent fall in revenue. That was
in contrast to European peers UBS, Bar-
clays, Credit Suisse and Deutsche where
bonuses, already far lower than their
pre-crisis level, were slashed by another
12 per cent as revenue fell 1 per cent.
ft.com/lombard
The ability to borrow more has helped keep house price
inflation high. The data are alarming. The average house
price last year grew to a multiple of five times average
earnings across the UK, com-
pared with the longtime
norm of three to four times.
Borrowing data
In London, where demand is are not quite
greatest and supply is most
squeezed, the longtime mul-
as out of kilter
tiple of three to six times has with history as
leapt to nearly 10 times.
Given that a third of the UK
house prices
population lives in the south-
east of England, any significant distortion here has the
capacity to rock the whole market.
Policymakers have largely been sanguine about the
developments. There have been big numbers of cash buy-
ers in the market in recent years, they point out, so mort-
gage borrowing data are not quite as out of kilter with his-
tory as house prices.
They also point to action they have taken. The Financial
Policy Committee, which looks for threats to UK financial
stability, told banks in 2014 that only 15 per cent of their
mortgage book could exceed a lending multiple of 4.5
times earnings. The government has also acted. After stok-
ing the property market for years — winning popularity
among the largely homeowning electorate whose property
wealth has soared — it seems that even chancellor George
Osborne has balked. In the buy-to-let market — which
accounted for nearly one in five mortgages last year — he
announced significant curbs, cutting tax relief and adding
a stamp duty surcharge.
The buy-to-let boom has been a two-pronged side-effect
of ultra-low interest rates. Investors were desperate to find
high-yield returns (which property has delivered hand-
somely), and have been able
to borrow at ultra-low rates
to leverage those returns.
Squeezing the
The policy tweaks may be balloon in one
working. Anecdotally, mort-
place has merely
gage lenders say total loan
volumes in recent weeks caused a bulge
have dipped — a trend that
may be attributable to fading
elsewhere
popularity of buy-to-let.
But given the strength of property inflation to date, addi-
tional reforms are likely to be needed if wage growth (of
circa 3 per cent) is to have any chance of making homes
more affordable. This is where the initial point about
mortgage tenures fits in.
There is no right term over which to take a mortgage. In
the US, 30 years is the standard. In Sweden, tenures can
extend to 50 years. But in the UK it is no coincidence that
longer repayment periods have emerged at the same time
as other constraints, such as the salary multiple restric-
tions, were imposed. Squeezing the balloon in one place
has merely caused a bulge elsewhere.
This is why the FPC, expected to focus again on the
mortgage market over coming months, should bring mort-
gage tenure under the control of regulators. Libertarians’
arguments in favour of longer loans (we live longer and
work until older) ignore the downsides — longer terms
mean more interest and more debt as well as protracted
uncertainty about rate levels. There is a particularly strong
argument for a period of low rates to automatically trigger
shorter mortgage terms, either by diktat, or by economic
incentive, for instance by raising risk weightings on longer
tenures. For the sake of homebuyers — and the stability of
mortgage finance — it is time for policymakers to tackle
the issue of unaffordable housing head-on.
patrick.jenkins@ft.com

Retail Retail & consumer

Casino shares hit by S&P ‘negative watch’ call Missing Chinese billionaire Zhou back at work
ADAM THOMSON — PARIS
Casino has reiterated its determination
to keep its investment-grade status
even as rating agency Standard &
Poor’s put the French retailer on “nega-
tive watch”, causing its shares to fall.
The group, which also operates in Latin
America and Asia, said yesterday that it
expected improvements in operating
performance this year and that a divest-
ment programme would strengthen its
financial structure. “The group is com-
mitted to its ‘investment-grade’ status,”
it said.
But shares tumbled more than 9 per
cent yesterday in a sign of investor
unease. The stock, which closed down
8.4 per cent at €36.66, has declined
almost 50 per cent inthepast12months.
The group’s bonds were also hit.
Casino’s 2026 euro-denominated bond
slumped 11 cents to 76.8 cents, while its
yield jumped 1.6 percentage points to
5.8 per cent. In April 2015, the bond was
priced as high as 111 cents.
On Friday, S&P had signalled its con-
cerns about the retail company’s profit-
ability and debt levels. “The group’s
profitability will continue to be fairly
weak for an extended period of time and
its debt levels, primarily located at the
French operations, too high,” the rating
agency wrote in a report.
It placed Casino’s long-term BBB- and
short-term A3 debt ratings on credit
watch, adding that it could lower the
long-term standing “by no more than
two notches”.
Such a move would downgrade the
group’s debt rating to “junk” status,
which would prompt some large institu-
tional investors to sell their positions.
The negative credit watch adds to
other recent woes for Casino. In Decem-
ber, the group’s shares plunged more
than 10 per cent after short seller and
research group Muddy Waters
described it as one of the “most overval-
ued and misunderstood” companies it
had ever studied.
PATTI WALDMEIR — SHANGHAI
The billionaire founder of one of
China’s most famous fashion brands
has returned to work a week after his
company said he had gone missing, the
latest in a series of entrepreneurs and
financiers apparently embroiled in Bei-
jing’s anti-corruption campaign.
Metersbonwe, one of the best-known
brands on the Chinese high street, said
in a statement to the Shenzhen stock
exchange last Friday that founder Zhou
Chengjian, China’s 62nd richest man
with a fortune of Rmb26.5bn ($4bn) last
year, was back at work along with Tu Ke,
board secretary.
In a statement on January 7 the com-
pany said it was unable to reach either
man and that its shares were suspended
while company officials investigated
media reports that Mr Zhou had been
detained by police. No details of the dis-
appearance were given in last week’s
statement.
However, shares in the company will
remain suspended until at least Febru-
ary 5, a further statement said, adding
that the company planned a “major
asset restructuring”.
Mr Zhou’s disappearance followed
close on the heels of that of Guo
Guangchang, chairman of the conglom-
erate Fosun, one of China’s best-known
companies internationally because of
its ownership of Club Med. Mr Guo went
missing in December and was later
reported by his company to be assisting
authorities with an investigation.
The detention of the two men caused
jitters in the mainland private sector,
which had been largely untouched by
anti-corruption investigations that had
targeted mostly government officials,
executives of state-owned companies
and financial industry executives.
Mr Guo was subsequently released
and allowed to travel overseas. Sources
close to the company said at the time he
was not the target of the investigation.
Additional reporting by Jackie Cai
Tuesday 19 January 2016
Investors show
little appetite
to chase large
biotech deals
Industry’s annual gathering failed to
convince groups to start buying again
DAVID CROW — SAN FRANCISCO
After months of battling a public outcry
over high drug prices, the pharmaceuti-
cals and biotech industry had hoped
that its annual gathering in San Fran-
cisco last week would provide an oppor-
tunity to start the year on a positive
note.
The JPMorgan Healthcare Conference
is the largest event of its kind, providing
a forum for companies to trumpet their
prospects, and for healthcare bankers to
cook up deals.
Shire, the Anglo-Irish drugmaker,
kicked off proceedings by announcing
its long-awaited $32bn takeover of US-
based Baxalta last Monday. But inves-
tors reacted to the proposed acquisition
by sending shares in both companies
tumbling, adding to a growing sense
that appetite for large deals is waning.
There was little else on offer to con-
vince investors to start buying again
after the recent sector sell-off. The Nas-
daq biotech index finished last week
down roughly 6 per cent, compared
$32bn 6%
The value of Fall in Nasdaq’s
Shire’s takeover biotech index
of the US-based compared with 2%
Baxalta fall for S&P 500
with a fall of about 2 per cent for the S&P
500.
Celgene, one of four large-cap biotech
groups, added to the gloom by cutting its
profit forecast for 2015 and predicting
that revenues this year would be below
analyst expectations. Robert Hugin,
chief executive since 2010, also spooked
some investors by announcing that he is
to stand down in March and become
chairman.
Executives argue that investors are
missing the bigger picture: biopharma
companies are discovering more drugs
than they have in years, such as cancer
immunotherapies that are producing
some remarkable results in tumours
that have hitherto been untreatable.
They also point to other potentially
huge advances: if solanezumab, an
Alzheimer’s drug being developed by Eli
Lilly, is successful when data from a
large trial are published this year, it will
be the first medicine proven to delay the
onset of the disease.
Investors remain wary, however. Just
over a third say they believe solanezu-
mab will work, according to a survey by
Evercore ISI, the investment bank. And,
at any rate, the data are not due until the
fourth quarter — which seems like a
long time when stock markets are so
volatile.
As investors scurried around the con-
ference halls of Westin St Francis hotel,
Pharmaceuticals
Rare disease drug faces FDA test
DAVID CROW — SAN FRANCISCO
A panel of experts appointed by the US
Food and Drug Administration is set to
recommend on Friday whether or not
the medicines watchdog should
approve a new drug for a rare and
deadly childhood disease.
There is no treatment for Duchenne
muscular dystrophy, an inherited disor-
der that causes progressive muscle
weakness in boys, leading to paralysis in
early infancy, and cardiac and respira-
tory problems during a sufferer’s teen-
age years. Most patients die in their 20s.
Sarepta Therapeutics, a tiny biotech
group, hopes to secure the first approval
for a DMD drug, but a negative docu-
ment published by the FDA last Friday
does not bode well. Shares in the group
fell 55 per cent following its release.
If the FDA rejects the drug, it will be
the second time it has turned down
approval for a DMD treatment this year.
★ FINANCIAL TIMES 15
COMPANIES
Waning momentum
Nasdaq Biotech index
4000
3500
3000
2500
2000
1500
1000
2012 13 14 15 16
Healthcare M&A volumes Global healthcare IPOs
nervously checking the sea of red on $676bn
their smartphone stocks apps, bankers Deal value ($bn) Deal value ($bn) Number of deals
and lawyers tried to put a positive gloss $84bn 25 250
on tumbling valuations. They say that
20 200
the recent market sell-off could spark a
fresh wave of deals as acquisitive com- 15 150
panies go bargain hunting. 10 100
Last year was a record for healthcare 5 50
1996 98 2000 02 04 06 08 10 12 15
deals, with much of the activity being 0 0
driven by a group of drugmakers loosely 2005 10 15
Sources: Bloomberg; Thomson Reuters
known as “specialty pharma”, which
typically increase profits and sales
through acquisitions rather than discov-
ering their own drugs.
That is unlikely to be the case in 2016.
Allergan, the largest specialty pharma
group, has said it will refrain from large
deals ahead of its takeover by Pfizer.
Valeant, the beleaguered Canadian
drugmaker, has pledged to abstain from
acquisitions so it can pay down a $31bn
net debt position that is making its
investors nervous.
Instead, bankers expect large, cash-
rich biotechs to drive dealmaking, such
as Gilead and Amgen, which recently
told the Financial Times they were
actively seeking acquisitions.
However, David Halal, chief executive
of Alexion, a rare diseases specialist,
says it will take time for directors of
smaller biotech companies to accept
that they are worth considerably less
than they were in the summer.
“Capitulation doesn’t just happen all
of a sudden, especially when you juxta-
pose today’s valuations with where you
were just a month or two ago,” says Mr
Halal.
Some cash-rich companies will have
the luxury of waiting for stock markets
to improve, but there are many smaller
groups that had hoped to raise funds
from investors in the early part of this
year through initial public offerings.
Others had planned to return for a sec-
ond or third follow-on financing.
“Where the pressure is going to be is
on those who are thinking about coming
out with their IPO and then all the sec-
ondaries,” says Mr Halal.
“Usually the JPMorgan conference is
the time to tee up fundraisings, and I
think that this week has probably
shaken some organisations.”
The head of healthcare at one large
investment bank said the week would
prove crucial for companies considering
raising capital. Editas Medicine, a group
focused on modifying genetic defects
that cause diseases, will test the markets
with its IPO, as will BeiGene, a Chinese
biotech in the field of cancer.
The banker, who is not involved in
either fundraising, predicted the com-
panies would complete their listings due
to strong support from their existing
shareholders, but added that if their
stock prices subsequently tumbled it
could prevent others from following
suit.
If IPO markets do freeze up, it would
leave some cash-strapped companies
with little option but to sell at a knock-
down price.
Many companies are ready to pounce,
such as Horizon Pharma, an acquisitive
group that is trying to turn itself into a
rare diseases specialist.
Last week, it refused to approve a simi-
lar treatment made by BioMarin, a rare
diseases specialist. The knock-back was
an embarrassment for BioMarin, which
gambled on buying the drug’s maker,
Prosensa, for $680m last year, even
though the medicine had failed in late-
stage clinical trials and lost the backing
of its partner GlaxoSmithKline.
PTC Therapeutics has also applied for
approval for its DMD medication, even
though the medicine failed to hit its pri-
mary target during a clinical trial last
year. The drug is conditionally approved
in Europe, pending the results of further
trials. The failure of all three drugs,
which have secured billions of dollars in
investment, would underline the some-
times risky endeavour of developing
medicines for rare diseases.
Because the number of people suffer-
ing from a rare disease is by definition so
small, it can be hard to design clinical
trials that show a clear benefit.
16
Automobiles
GM’s Opel rejects Belgian emissions claim
Broadcaster VRT says
group secretly modified
Zafira’s performance
ANDY SHARMAN — LONDON
The Zafira, a family car sold by the
European arm of General Motors, has
come under fresh scrutiny for its emis-
sions performance in the wake of the
Volkswagen diesel scandal.
GM’s Opel division said it had been
made the subject of “false accusations”
after a report by Belgian broadcaster
VRT claimed it had been secretly modi-
Noble reaps bitter harvest from Agri unit sale
Debt-laden commodity house’s
deal helps drive downgrades
and adds to refinancing woes
NEIL HUME AND DAVID SHEPPARD
LONDON
When Noble Group announced a deal to
exit agricultural trading last month, the
debt-laden commodity house believed
it would draw a line under a bruising
year.
Noble’s sale of its 49 per cent stake in
Noble Agri would raise at least $750m
and let Asia’s largest commodity trader
defend its investment grade credit rat-
ing, which had come under threat
because of weak results.
But rather than enabling the com-
pany to move on, the planned stake dis-
posal had a sting in the tail for Noble,
which has spent the past year fighting
allegations of aggressive accounting.
This came in the shape of a $500m write
down on the $1.3bn valuation ascribed
to the Noble Agri stake in Noble’s
accounts.
The writedown will not only hit the
company’s annual profits for 2015, but
has also intensified concerns about how
Noble values the businesses it owns and
invests in. This is now preying on the
minds of bankers as Hong Kong-based
Noble attempts to refinance short-term
credit facilities that are crucial to its
trading operations.
“The Noble Agri deal has reopened
the doors to the [accounting] allega-
tions,” says one lender who is a member
of Noble’s banking syndicate. “They
may have seemed extreme 12 months
ago, but not any more.”
Rather than protecting its investment
grade rating, the proposed Noble Agri
stake sale contributed to decisions in
recent weeks by Moody’s and Standard
& Poor’s to downgrade the company’s
credit rating to junk status.
S&P said the sale made Noble a less
diverse business, and did not fully
address concerns about the company’s
liquidity. “The company’s credit stand-
ing in the capital markets and with lend-
ers has weakened, reflected in its
depressed securities prices,” added S&P.
Noble needs access to cheap financing
to compete with rivals such as Glencore,
Trafigura and Vitol. Many natural
resources companies are grappling with
the worst commodities rout since the
financial crisis, but some — notably
Glencore and Noble — also have large
fying the emissions performance of its
cars using unexplained software
updates since the VW scandal emerged
in September.
The German-based manufacturer
said: “Opel clearly rejects the claim of
VRT News that Opel dealers have been
modifying software in the Zafira Tourer
1.6 [litre] diesel which changes the
emission behaviour of these vehicles.
The mentioned service update . . . has
nothing to do with changing emission
levels.”
The report came as global automak-
ers are under the spotlight following the
revelation that VW installed so-called
Basic resources. Credit test
A Noble Agri sugar operation in
Brazil. Noble suffered a $500m
writedown on the $1.3bn valuation
ascribed to its Noble Agri stake in its
accounts — Noble Agri
Noble
Share price (S$)
1.2
1.0
0.8
0.6
0.4
0.2
Jan 2015 Jan
2016
Source: Thomson Reuters Datastream
★ FINANCIAL TIMES
COMPANIES
defeat devices in half a million cars in
the US to trick laboratory testers into
thinking the vehicles were cleaner than
in reality.
Mass-market rival Renault was yes-
terday facing representatives of a
French government commission to
explain its own emissions performance,
after investigators raided several of the
carmaker’s offices this month. The reve-
lation of the visits by the authorities
sent Renault’s shares down by 10 per
cent on Thursday, though both the com-
pany and members of the government
said there was no evidence of illegality.
VRT yesterday aired a news item in
debt loads. Noble has accumulated net
debt of $4.2bn, or 3.6 times its earnings
before interest, tax, depreciation and
amortisation, according to Moody’s.
Shares in Noble have sunk to their
lowest level since 2003. The company’s
equity is now valued at just $1.3bn,
while yields on its bonds have soared to
more than 20 per cent. This has effec-
tively shut Noble out of the bond mar-
ket, and the cost of insuring the com-
pany’s debt against default is now
among the highest in Asia.
“It’s clearly going to be difficult for
Noble to refinance given the decline in
commodity prices, their loss of invest-
ment grade credit rating and concerns
over the appropriateness of their
accounting,” says Gillem Tulloch of
GMT Research, a research company
that has published several reports criti-
cising Noble’s accounting.
Founded by Richard Elman, a British
former scrap dealer, Noble runs Asia’s
biggest commodity trading business.
But the Singapore-listed company has
been on the defensive since February
last year when a group called Iceberg
Technology
Ingenico challenges Worldpay with mobile payments launch
ADAM THOMSON — PARIS
Ingenico, the French payments
processing group, has launched an
online and mobile division as it pre-
pares to take the fight to rivals such as
UK-based Worldpay.
Ingenico ePayments, as the new division
is called, combines the group’s Ogone
and GlobalCollect ecommerce compa-
nies with the aim of providing retailers
with a greater range of online and
mobile payments services.
The push into ecommerce reflects the
rapid shift in the way consumers pay for
Tuesday 19 January 2016
Automobiles
Renault under
pressure as it
which British and Flemish experts cover footage appeared to suggest vows to tackle
tested two Zafira cars with diesel
engines complying with the latest “euro
6” standards.
mechanics believed the software was
designed to improve emissions.
Opel said the fix was related to a diesel
lab tests gap
The Belgian broadcaster said that, exhaust fluid controller sending out the
under a test closely matching the official wrong signals, falsely illuminating a
laboratory regime, the cars emitted warning light. Only 309 vehicles in Bel- MICHAEL STOTHARD — PARIS
nitrogen oxides — the collective name gium were affected by the service
Renault has promised to present a
for diesel pollutants — at five and nine update, it added.
plan to address the gap between its
times the EU limit of 80mg of Nox per The research was carried out for VRT
vehicles’ emissions in laboratory tests
km. by UK testing company Emissions Ana-
and in real world driving conditions
Following a software update carried lytics and the Thomas More university
after a government commission found
out by a local dealership alongside a rou- in Belgium.
large discrepancies.
tine service, the cars’ emissions per- Opel said it had openly discussed the
formance improved, producing Nox at software update with the German motor The company has been under pressure
2.8 and 2.5 times legal limits. Under- authority. after it revealed last Thursday that its
offices in France were searched by gov-
ernment fraud investigators as part of a
probe into vehicle emissions, sending
shares down 10 per cent.
Investors were worried that Renault
was becoming embroiled in the emis-
sions scandal, which has dogged the
sector ever since Volkswagen last year
admitted to installing software to cheat
official emissions tests.
A government commission found that
Renault cars has not been using illegal
software to cheat tests. But the commis-
sion did find that some Renault cars had
emissions that “exceeded limits” in real-
world driving conditions. The company
was being summoned to explain itself
yesterday afternoon.
Ahead of this, Thierry Koskas,
Renault’s executive vice-president for
€50m 1.7%
Investment to Share price drop
bring emissions of yesterday, with a
cars into line with 13% tumble since
test conditions news broke of raid
sales and marketing, said the company
was “working on a technical plan that
should allow us to reduce emissions”.
This would be presented “in the coming
weeks”, he said.
Shares in Renault were down 1.7 per
cent yesterday morning and have fallen
13 per cent since news of the raid by the
French fraud office broke last Thursday.
Discrepancies between lab results and
real-world performance do not neces-
sarily indicate that there was wrong
doing at Renault. This is because car-
makers are allowed to “optimise” their
cars — for example, leaving out car ster-
eos and spare wheels to reduce weight —
for the laboratory tests.
But there has been a backlash against
the practice since the VW scandal. Brus-
Research claimed it inflated asset values for its book of contracts to source and sels is pushing to introduce by 2017 a
and booked profits on deals long before supply raw materials for customers. tougher test regime which better repre-
receiving cash from the transactions. People familiar with Noble’s opera- sents real-world driving and closes cer-
Noble has robustly denied the allega- tions say it still has the Noble Agri pro- tain loopholes.
tions, but it has not silenced its critics ceeds “earmarked” for paying off loans. Last December, Renault announced it
and this is now complicating the com- Noble declined to comment on the refi- would invest €50m to bring the emis-
pany’s refinancing efforts. nancing of its bank debt. sions of its cars into line with those
Noble is trying to persuade a group of While commodity houses can and do measured in official test conditions. Yes-
lenders to commit early to new borrow- thrive in low-price environments by terday, Mr Koskas said he and the com-
ing facilities that are needed to replace exploiting volatility — Trafigura, for pany were not worried about the inves-
$2.2bn of unsecured bank loans that example, last month reported blowout tigation. “I don’t think the current situa-
mature in May, according to people profits from oil trading — lenders and tion will have any consequences,” he
familiar with the discussions. regulators, especially those with a less said. “Renault hasn’t cheated.”
“The [Noble] Agri sale has really sophisticated understanding of the Last Friday, Ségolène Royal, the
shaken confidence,” says the lender. industry, can grow nervous. French environment minister, said the
“Everyone is very uneasy about the Bankers say many lenders active in company would not “for the moment”
overall financial position.” commodity finance have received calls be made to pay back tax breaks on low-
Fitch, which has retained an invest- from their regulators or central bankers emission cars. But she left the option
ment grade rating on Noble, reckons the demanding detailed information on open for the future. “For that, we will
company can refinance most of its their exposure to trading houses, min- have to study by how much exactly the
short-term debt so long as it can gener- ing companies and specific commodi- limits were exceeded,” she said.
ate up to $1.4bn of cash from asset sales, ties such as oil or copper. The current average discrepancy
improved profitability and reduced Noble is not the only trader seeking between the laboratory and real-world
working capital. new credit facilities with banks — Glen- tests is about 35 per cent, according to a
As well as selling its stake in Noble core is also engaged in a similar exercise. CCC report, carried out by researchers
Agri, Noble has previously raised the “If [Noble] do manage to successfully at British consultancy Element Energy
idea of securing a strategic investor. It refinance, it’s going to come at a far and the International Council on Clean
has been trying to a find a co-investor higher interest cost,” says Mr Tulloch. Transportation.
merchandise. Late last year, Worldpay, introduce mobile apps as a way of hold- we have is to be as strong in epayments
one of the French group’s main rivals, ing on to their customers. as we have been in terminals and in-
predicted that so-called digital wallets Philippe Lazare, Ingenico’s chairman store payments.” Mr Vacheron said 19
would become the world’s most popular and chief executive, said the move would per cent of transactions that Ingenico
payment method in the coming years. add weight to its position within ecom- processed over Christmas were done via
A report by Worldpay in November merce, “taking us a step further towards a tablet or a smartphone, compared
predicted that $647bn of consumer becoming an omnichannel player”. with just 12 per cent two years ago.
spending with businesses would be Ingenico’s traditional business has Late last year, Worldpay, then owned
made using digital, or ewallets, in 2019 rested on manufacturing “point of sale” by private equity firms Advent Interna-
compared with an estimated $577bn payments terminals in restaurants, tional and Bain Capital, rejected a
through credit cards and $412bn via shops and other retail outlets. £6.6bn takeover bid from Ingenico.
debit cards. But Pierre-Antoine Vacheron, execu- Instead, it raised £2.5bn through an ini-
The surge in digital payments has tive vice-president of Ingenico ePay- tial public offering, the UK’s largest in
prompted the likes of Apple and Google ments, said: “All the growth is coming the past two years. The listing valued it
to move into the technology as banks from online shopping . . . the ambition at £6.3bn, including £1.5bn of net debt.
Businesses For Sale
Business for Sale, Business Opportunities, Business Services,
Business Wanted, Franchises
Runs Daily
.....................................................................................................................................................................................................................................................................................................................................................................................................................
Classified Business Advertising
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
Tuesday 19 January 2016 ★ FINANCIAL TIMES 17
18 ★ FINANCIAL TIMES Tuesday 19 January 2016

COMPANIES

Media

WhatsApp and Instagram shift business models

Facebook-owned apps
seek new ways to turn
user bases to advantage
MURAD AHMED — MUNICH
ROBERT COOKSON — LONDON
WhatsApp and Instagram unveiled
changes to their business models yester-
day as the Facebook-owned smart-
phone apps look to find ways of turning
their wide user bases into substantial
businesses.
Jan Koum, co-founder and chief exec-
utive of WhatsApp — the messaging app
acquired by Facebook for $22bn in 2014
— told the DLD technology conference
in Munich that it is scrapping the
99-cent annual fee it charges consumers
after a year. He said the company would
instead focus on making businesses pay
to connect with its 900m users.
“It really doesn’t work that well,” he
said of the subscription fee.
He provided few details on what this
alternative business model would
involve, admitting WhatsApp engineers
had not yet “written a single line of
code” in developing new services.
But in a blogpost, the company said it
will test tools to allow users to commu-
nicate with organisations on the plat-
form. “That could mean communicat-
ing with your bank about whether a
recent transaction was fraudulent, or
with an airline about a delayed flight,” it
said, adding that it wanted to find a way
of doing this in a way that did not rely on
advertising.
Thomas Husson, analyst at Forrester
Research, said that WhatsApp was
following in the footsteps of China’s
WeChat. That service, owned by inter-
net group Tencent, offers much more
than just messaging, including the abil-
ity to access entertainment content,
order a taxi and pay for goods directly
from the platform.
He predicted that there would be
strong demand from companies to use
WhatsApp as a business channel, given
its huge popularity with consumers.
Mr Koum’s announcement came
hours after Instagram, the photo-
sharing app acquired for $1bn in 2012,
told the Financial Times that it would
rapidly expand its advertising model
and ramp up its efforts with small busi-
nesses and users outside the US.
Marne Levine, chief operating officer,
said it would do this by working more
closely with the sales team of its parent
group. “What you’ve mostly seen so far
is bigger brands and bigger businesses
using advertising to connect with con-
sumers,” she said. “I think what you’ll
see in 2016 is small businesses starting
to advertise more.”
At the time of Facebook’s acquisition,
the companies said that Instagram
would be run as an independent group.
Ms Levine said that Facebook’s global
sales team was beginning to push Insta-
gram’s advertising offering at small
businesses, enabling them to target
marketing at particular users. “We can
plug in to the infrastructure and really
leverage a lot of the resources that Face-
book has,” she said.
International expansion was a prior-
ity, she added, with 75 per cent of its
more than 400m users based outside
the US.

Insurance. Big data

Aviva opens ‘digital garage’ in bid to boost profitability

Sector begins playing catch-up
to fintech start-ups that are
winning billions in investment
OLIVER RALPH — LONDON
Few investors would associate exposed
brick walls, table footie and vintage
posters in London’s trendy Hoxton
Square with insurance.
But this “digital garage” is one of two
sites set up by Aviva to explore and
develop all things digital. The other,
opened last month, is located in a 1930s
art deco former art gallery in Singapore.
“We’re being encouraged to break
every rule in the book, and not feel con-
strained by traditional ways of doing
things in the industry,” says Andrew
Brem, the former Asda and Carphone
Warehouse executive who was brought
in to run Aviva’s digital strategy in
December 2014. He manages about 100
people at the digital garage, from web-
site creators to data analysts to games
developers.
The FTSE 100 insurer is one of several
in the sector investing in technology in
an effort to harness big data analytics to
help remain competitive and boost
profitability.
By analysing data, for example, the
company has found that pension savers
tend to be better drivers, so it offers car
insurance discounts to its pension
customers.
Germany’s Allianz announced the
formation of a unit called Digital Trans-
formation in November. Italy’s Generali
is also investing heavily. And in the US,
insurers such as MetLife and MassMu-
tual have committed millions to tech
start-ups.
Compared with other industries,
however, insurers are playing catch-up.
Free of stringent regulation and legacy
IT systems, fintech is booming, with
start-ups attracting billions of dollars of
investment as they tap into new tech-
The ‘digital nology providing online financial serv-
garage’ in ices from payments and lending to
London’s digital currencies and cross-border
Hoxton Square, transfers.
set up by Aviva “We are a little bit late to the game,”
insurance group says Kurt Karl, chief economist at Swiss
to develop all Re. “I’d say we are two to three years
things digital — behind other industries but the interest
HLW
has cranked up enormously.”
He attributes much of the tardiness to
the nature of the industry. “It is a con-
servative industry. We buy ‘bads’ rather
than ‘goods’ and the nature of the busi-
ness makes us cautious.”
That, however, is starting to change.
Investors poured $2.6bn into insurance
tech start-ups in 2015, according to data
from CB Insights, which tracks private
tech investing.
“It is about now that a lot of the mil-
lennial generation are beginning to ask
about insurance,” says Eric Emmons, a
managing director at MassMutual’s ven-
ture capital fund. “They are asking why
technology hasn’t shown up in insur-
ance, and who will be the first to do it.”
The need to digitise and innovate is
being fuelled by low interest rates, pric-
ing pressure, regulatory change and the
need to diversify.
“The industry has come under an
enormous amount of earnings pressure,
driven by the low interest rate environ-
ment,” says Marty Lippert, head of glo-
bal technology at MetLife. “The indus-
try has to take a different view of how it
operates. Efficiencies are important and
we have been working hard to take costs
out.”
The industry is focusing on two areas.
The first is the relatively dowdy world of
back-office systems.
“Over the past two or three years, big
insurers have been looking at legacy
systems, which have been creaking at
the edges,” says Nigel Walsh, head of UK
insurance at Capgemini. “You can’t
deliver modern, agile services on sys-
tems that were built 30 years ago.”
Only once the basic systems have
been fixed, analysts argue, can insurers
really start to innovate and use “big
data” to take a comprehensive look at
risks across the business. Automation is
also a part of the process. “There is a big
opportunity in taking paper-based
processes out,” says Mr Lippert.
The second focus is customers. “Cus-
tomers are getting more savvy,” says Mr
Walsh. “Expectations have gone up
but insurers are not meeting those
expectations.”
For many insurers customer contact
comes once a year — when the policy
renewal is due. And few customers rel-
ish that moment.
A survey by Boston Consulting Group
and Morgan Stanley in 2014 found that
customers interacted less with insurers
than with any other industry. They also
rated their online experiences with
insurers below those with other indus-
tries. This explains why so much effort
has gone into doing the basics better.
At the digital garage, for example,
Aviva is developing a system that allows
customers to see all their Aviva prod-
ucts on one screen, and is also cutting
the number of questions that customers
100 have to answer before buying a product.
The number of But the ambition to get closer to cus-
website experts tomers goes much further. Insurers see
working at the the much-hyped “internet of things” as
‘digital garage’ a huge opportunity. By measuring how
people drive (through telematics) or
$2.6bn their physical activity (through weara-
The amount that ble devices) the industry hopes that it
investors poured can persuade its customers to cut out
into insurance tech risks and so push down the cost of
start-ups in 2015
claims.
And if they cannot be encouraged to
do so, at least the insurers will be able to
price risks better.

Contracts & Tenders Legal Notices Media. Programme production

Endemol Shine staff exodus causes a stir

Merger raises questions about
whether bigger is better when
making hit TV programmes
HENRY MANCE — MEDIA CORRESPONDENT
An exodus of senior staff from
Endemol Shine, Europe’s largest inde-
pendent production company, has
raised questions about whether bigger
Business For Sale
is really better when it comes to mak-
ing the next generation of TV hits.
The merger of Shine, the outfit set up by
Elisabeth Murdoch, with Endemol, the
maker of Big Brother, created a company
with revenues of £1.5bn, and an ability
to distribute hit shows globally.
Last week Tim Hincks, Endemol
Shine’s top creative executive,
announced his departure — meaning
that at least five senior figures will have
left little more than a year after the
merger. “It’s like a supporting wall has
been taken out of the building, and no
one knows whether the building is going
to fall down or not,” says one person at
the company.
Endemol Shine’s plight is being
closely watched in Europe’s television
sector — with other media companies,
including ITV and John Malone’s Lib-
erty Global, having invested heavily in
Public Notice businesses that rely on retaining their
top talent.
Some key executives at Endemol
Shine are opting for the less bureau-
cratic world of smaller production com-
panies. Jane Featherstone, formerly
Shine’s best-known programme maker
and the executive producer of Spooks
and Broadchurch, will launch her new
venture today.
Intriguingly, its backers are expected
to include Ms Murdoch, according to
people close to the venture. Ms Mur-
doch stepped down as Shine chairman
at the time of the merger with Endemol.
Endemol Shine has played down
executive departures — pointing out
that it employs nearly 5,000 people.
“When you’re at this scale, you’re going
to see movement whether you like it or
not,” says Sophie Turner Laing, chief
executive, adding that many key crea-
tive talents remain with its approxi-
mately 120 individual production com-
panies. “We delivered 715 productions
last year . . . despite going through the
merger and integration.”
Both Shine and Endemol had trou-
Back after the break
Elisabeth Murdoch to
return to small screen
Elisabeth Murdoch is set to return
to the television industry five years
after selling her production
company, Shine, for £415m.
Ms Murdoch has held talks with
Jane Featherstone, one of Shine’s
former top creatives who is the
producer of shows such as Spooks
and Broadchurch, about investing
in Featherstone’s new company
making TV drama, according to
people familiar with the situation.
The move puts Ms Murdoch into
direct competition with Endemol
Shine, which is part-owned by 21st
Century Fox, the media group run
by her father, Rupert Murdoch, and
her brothers, James and Lachlan.
Henry Mance and
Matthew Garrahan
bled histories before the merger. Ms
Murdoch had built Shine into a feisty
television upstart, buying the rights to
programmes such as MasterChef.
But when News Corp, chaired by her
father Rupert Murdoch, bought the
company in 2011 at a valuation of
$673m (£415m at the time), a group of
shareholders sued, arguing the deal was
“nepotistic”. News Corp (now 21st Cen-
tury Fox) settled the claim, but strug-
gled to integrate a group that was tiny by
the standards of other subsidiaries.
Endemol, meanwhile, was sold for
€2.6bn just before the financial crisis. It
endured a messy debt restructuring,
which ended with Apollo Global Man-
agement emerging on top.
The combined company, Endemol
Shine, is vulnerable because of its reli-
ance on ageing reality show formats.
Non-scripted shows — such as Big
Brother, Million Pound Drop and Deal or
No Deal — represent about three-quar-
ters of revenues. It is now seeking to tap
the boom in drama, through its well-
regarded production companies such as
Tiger Aspect and Kudos.
Ms Turner Laing wants to diversify
the group away from TV revenues. She
argues that 25 per cent of the group’s
sales could come from producing videos
for brands, selling merchandise linked
to shows such as MasterChef, and other
commercial revenues. Currently the
proportion is just 5 per cent.
“We’re slightly stuck in an old world,”
she said last year. Endemol Shine pro-
duces digital video for brands such as
San Pellegrino; it can “adapt their con-
tent just as we would our own formats”.
That message sits uneasily with some
in the company. They note that she has a
background in distributing pro-
grammes rather than making them.
Tuesday 19 January 2016 ★ FINANCIAL TIMES 19
20 FINANCIAL TIMES Tuesday 19 January 2016

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-2.16% -2.74% -2.39% -0.42% -0.29% -1.12% -1.45% -0.48% -0.639% -0.280% -0.392% -0.42%
0.454% 2.02%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 16 - Jan 15 Index All World Dec 19 - Jan 18 Index All World Dec 19 - Jan 18 Index All World Dec 19 - Jan 18 Index All World Dec 19 - Jan 18 Index All World Dec 19 - Jan 18 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul

2,043.41 12,919.57 6,017.79 18,883.42 1,975.32

10,139.34
5,779.92 1,878.45
1,880.33 11,960.59 9,521.85 16,955.57
Day -2.16% Month -7.00% Year -6.51% Day -0.93% Month -8.15% Year -16.40% Day -0.42% Month -4.46% Year -11.72% Day -0.25% Month -3.09% Year NaN% Day -1.12% Month -12.39% Year 0.54% Day -0.02% Month -5.03% Year -0.51%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
4,995.36 42,936.63 1,415.72 9,717.10 21,701.21 2,840.92
40,563.78
4,488.42 1,293.29 8,469.30 19,237.45 2,593.00
Day -2.74% Month -9.37% Year -3.25% Day -0.70% Month -5.49% Year -1.99% Day -0.29% Month -8.87% Year -8.09% Day -0.87% Month -14.27% Year -15.64% Day -1.45% Month -12.05% Year -20.19% Day -1.44% Month -9.37% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
43,199.95 3,580.00 25,803.78
17,524.91 4,625.26 20,506.56
24,188.37
15,988.08 38,338.79 4,189.57 18,686.86 2,913.84
Day -2.39% Month -7.95% Year -8.26% Day -0.60% Month -12.69% Year -21.79% Day -0.49% Month -10.43% Year -4.34% Day -2.65% Month -12.03% Year -2.95% Day 0.44% Month -18.61% Year -13.70% Day -1.09% Month -6.26% Year -13.99%

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 9811.08 10020.37 Cyprus CSE M&P Gen 66.24 66.10 Italy FTSE Italia All-Share 20330.00 20888.82 Philippines Manila Comp 6335.09 6449.50 Taiwan Weighted Pr 7811.18 7762.01 Cross-Border DJ Global Titans ($) 215.21 215.59
Australia All Ordinaries 4911.80 4948.50 Czech Republic
PX 867.85 881.12 FTSE Italia Mid Cap 30938.34 31810.84 Poland Wig 42506.92 43719.53 Thailand Bangkok SET 1245.05 1245.85 Euro Stoxx 50 (Eur) 2935.26 2952.48
S&P/ASX 200 4858.70 4892.80 Denmark OMXC Copenahgen 20 920.72 919.08 FTSE MIB 18686.86 19195.94 Portugal PSI 20 4653.56 4832.93 Turkey BIST 100 71062.00 71940.56 Euronext 100 ID 822.65 827.53
S&P/ASX 200 Res 2089.80 2140.30 Egypt EGX 30 5760.19 5857.70 Japan 2nd Section 4370.07 4416.21 PSI General 2248.06 2321.81 UAE Abu Dhabi General Index 3794.98 3787.40 FTSE 4Good Global ($) 4917.18 4937.83
Austria ATX 2070.77 2113.16 Estonia OMX Tallinn 884.33 885.07 Nikkei 225 16955.57 17147.11 Romania BET Index 6042.49 6340.38 UK FT 30 2715.80 2758.00 FTSE All World 239.57 240.72
Belgium BEL 20 3339.75 3384.20 Finland OMX Helsinki General 7961.08 7992.03 S&P Topix 150 1143.23 1154.67 Russia Micex Index 1622.43 1608.36 FTSE 100 5779.92 5804.10 FTSE E300 1293.29 1297.10
BEL Mid 5358.73 5454.31 France CAC 40 4189.57 4210.16 Topix 1387.93 1402.45 RTX 646.90 652.98 FTSE 4Good UK 5251.10 5284.85 FTSE Eurotop 100 2563.53 2570.43
Brazil Bovespa 38338.79 38569.13 SBF 120 3310.41 3330.96 Jordan Amman SE 2101.77 2111.41 Saudi-Arabia TADAWUL All Share Index 5525.12 5520.41 FTSE All Share 3183.92 3202.33 FTSE Global 100 ($) 1197.19 1199.86
Canada S&P/TSX 60 704.35 709.12 Germany M-DAX 18662.69 18789.76 Kenya NSE 20 3824.60 3839.29 Singapore FTSE Straits Times 2593.00 2630.76 FTSE techMARK 100 3730.34 3751.06 FTSE Gold Min ($) 864.40 864.60
S&P/TSX Comp 11960.59 12073.46 TecDAX 1591.27 1614.25 Kuwait KSX Market Index 505.46 509.84 Slovakia SAX 303.23 299.44 USA DJ Composite 5529.86 5637.50 FTSE Latibex Top (Eur) 1913.30 1894.00
S&P/TSX Met & Min 252.89 255.03 XETRA Dax 9521.85 9545.27 Latvia OMX Riga 597.41 592.35 Slovenia SBI TOP 670.11 668.03 DJ Industrial 15988.08 16379.05 FTSE Multinationals ($) 1355.95 1383.63
Chile IGPA Gen 17266.07 17297.23 Greece Athens Gen 543.13 558.45 Lithuania OMX Vilnius 484.12 483.82 South Africa FTSE/JSE All Share 46876.62 46960.37 DJ Transport 6689.06 6799.92 FTSE World ($) 425.58 427.46
China FTSE A200 8062.81 8044.20 FTSE/ASE 20 151.41 157.98 Luxembourg LuxX 1242.64 1257.09 FTSE/JSE Res 20 22878.94 23093.35 DJ Utilities 582.79 587.42 FTSEurofirst 100 (Eur) 3621.20 3632.73
FTSE B35 10095.20 10122.37 Hong Kong Hang Seng 19237.45 19520.77 Malaysia FTSE Bursa KLCI 1622.64 1628.55 FTSE/JSE Top 40 42093.40 42105.00 Nasdaq 100 4141.08 4272.97 FTSEurofirst 80 (Eur) 3959.87 3981.96
Shanghai A 3049.49 3036.04 HS China Enterprise 8134.81 8236.28 Mexico IPC 40563.78 40847.70 South Korea Kospi 1878.45 1878.87 Nasdaq Cmp 4488.42 4615.00 MSCI ACWI Fr ($) 364.47 371.24
Shanghai B 358.69 356.60 HSCC Red Chip 3414.87 3446.36 Morocco MASI 8853.56 8852.28 Kospi 200 228.59 228.78 NYSE Comp 9299.62 9516.55 MSCI All World ($) 1521.00 1549.06
Shanghai Comp 2913.84 2900.97 Hungary Bux 23179.43 23882.92 Netherlands AEX 401.99 403.57 Spain IBEX 35 8469.30 8543.60 S&P 500 1880.33 1921.84 MSCI Europe (Eur) 1291.07 1321.43
Shenzhen A 1913.86 1877.94 India BSE Sensex 24188.37 24455.04 AEX All Share 617.47 620.13 Sri Lanka CSE All Share 6324.61 6446.20 Wilshire 5000 19335.23 19755.74 MSCI Pacific ($) 2121.33 2119.93
Shenzhen B 1165.70 1164.87 S&P CNX 500 6149.15 6262.40 New Zealand NZX 50 6101.44 6169.09 Sweden OMX Stockholm 30 1309.54 1305.24 Venezuela IBC 14496.76 14563.53 S&P Euro (Eur) 1314.60 1323.13
Colombia COLCAP 1103.26 1128.65 Indonesia Jakarta Comp 4481.28 4523.98 Nigeria SE All Share 23514.04 24239.98 OMX Stockholm AS 453.62 453.37 Vietnam VNI 526.37 543.04 S&P Europe 350 (Eur) 1324.89 1328.38
Croatia CROBEX 1576.47 1588.18 Ireland ISEQ Overall 6279.71 6322.30 Norway Oslo All Share 563.22 570.86 Switzerland SMI Index 8099.08 8107.13 S&P Global 1200 ($) 1670.86 1676.14
Israel Tel Aviv 100 12.45 12.48 Pakistan KSE 100 30628.40 30628.40 Stoxx 50 (Eur) 2796.12 2801.43
(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 18 %Chg %Chg Jan 18 %Chg %Chg Jan 18 %Chg %Chg Jan 18 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 77.5 97.13 -2.39 Hsbc Holdings 190.9 479.70 -5.95 Bbva 638.9 5.81 -0.09 Toyota Motor 684.2 6742.00 -17.00 Tesco 161.55 10.8 7.8 Debenhams 76.55 16.0 4.5 Chemring 186.25 9.6 -1.7 Oil Equipment & Services 11893.96 4.1 -8.7
Amazon.com 44.4 570.18 -22.82 Bg 189.1 928.60 2.60 Unicredit 397.6 4.40 0.00 Softbank . 652.4 5111.00 -437.00 Shire 4250.00 8.3 -9.5 B&m Eur Value Retail S.a. 273.00 10.5 -3.9 Avon Rubber 1015.00 9.5 12.0 Food & Drug Retailers 2493.21 3.1 -0.3
Facebook Class A 43.8 94.97 -3.40 Vodafone 144.5 213.45 -1.20 Novartis N 376.5 73.40 0.00 Mitsubishi Ufj Fin,. 457.8 659.40 -12.60 Bp 340.50 4.9 -2.8 Jd Sports Fashion 1078.00 9.9 6.9 Xaar 480.00 7.1 14.3 Personal Goods 24907.93 2.9 -3.4
Microsoft 36.6 50.99 -2.12 Bp 142.0 340.50 6.04 Santander 375.3 3.95 -0.05 Mizuho Fin,. 388.2 216.80 -5.60 Burberry 1121.00 3.6 -6.0 Amec Foster Wheeler 392.00 6.6 -7.5 Uk Mail 261.00 6.3 4.4 Pharmaceuticals & Biotech. 12165.47 1.2 -5.6
Alphabet Class A Common Stock 27.2 710.49 -20.90 Lloyds Banking 109.1 63.96 -0.76 Intesa Sanpaolo 367.8 2.80 0.00 Sony 321.8 2622.50 40.00 Unilever 2843.00 2.9 -2.9 Jimmy Choo 130.00 5.9 -8.0 Stv 505.00 4.6 -1.9 Automobiles & Parts 6581.66 1.1 -8.7
Alphabet Class C Capital Stock 25.1 694.45 -20.27 Royal Dutch Shell 105.4 1338.50 9.60 Adidas Ag Na O.n. 348.5 84.01 0.00 Fast Retailing Co., 292.3 36730.00 -270.00 Bg 928.60 2.2 -4.8 Home Retail 153.10 5.8 53.8 Menzies(john) 400.25 4.5 -3.6 Oil & Gas Producers 5165.53 0.9 -8.7
Bank Of America 24.9 14.46 -0.53 Royal Dutch Shell 85.9 1337.50 3.47 Nestle N 338.6 64.03 0.00 Fanuc 279.7 18310.00 -205.00 Experian 1122.00 2.0 -6.5 Tate & Lyle 588.50 5.8 0.9 Diverse ome Trust (the) 89.00 4.1 -2.4 Beverages 15113.04 -0.1 -1.9
Intel 22.7 29.76 -2.98 Rio Tinto 83.3 1632.50 -14.21 Total 306.5 38.08 0.43 Sumitomo Mitsui Fin,. 275.1 4105.00 -67.00 Pearson 692.00 1.9 -5.5 Morrison (wm) Supermarkets 159.70 5.4 8.3 Mears 450.75 3.9 -3.7 Tobacco 44660.49 -0.2 -3.0
Citigroup 22.3 42.47 -2.91 Shire 83.2 4250.00 71.00 Iberdrola 302.7 6.13 -0.03 Honda Motor Co., 237.9 3410.00 -83.00 Direct Line Insurance 369.10 1.9 -9.4 Wood (john) 576.00 4.0 -6.0 Utv Media 180.25 3.9 3.0 Food Producers 8183.43 -0.3 -7.5
Exxon Mobil 22.0 77.58 -1.54 Unilever 82.6 2843.00 44.50 Daimler Ag Na O.n. 299.6 64.53 0.00 Mazda Motor 206.0 2041.00 -17.00 Glencore 75.15 1.6 -17.5 Petrofac 707.00 3.9 -11.2 Moss Bros 98.50 3.7 -3.2 Technology Hardware & Equip. 1165.57 -0.9 -8.5
Admiral 1641.00 1.6 -1.1 Clarkson 2152.00 2.5 -4.4 Capital & Regional 64.75 3.6 -0.4 Fixed Line Telecommunication 5132.21 -1.1 -3.4
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
Imperial Tobacco 3568.00 1.6 -0.5 Greencore 351.10 2.5 -0.9 Carclo 145.00 3.6 14.2 Nonlife Insurance 2325.04 -1.2 -5.6
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Wynn Resorts Ltd 58.37 6.87 13.34 Aldermore 188.00 7.00 3.87 Arcelormittal 3.15 0.10 3.14 Shiseido , 2242.50 59.00 2.70 Aberdeen Asset Management 223.60 -10.5 -22.7 Restaurant 516.00 -20.7 -24.8 Premier Oil 19.00 -56.1 -60.8 Electronic & Electrical Equip. 3765.53 -6.7 -11.2
Abbvie 57.34 2.78 5.10 Go-ahead 2518.00 60.00 2.44 Essilor Intl. 109.45 1.70 1.58 Toshiba 230.30 5.50 2.45 Intercontinental Hotels 2246.00 -10.5 -15.0 Allied Minds 295.00 -19.4 -25.4 Lonmin 38.25 -30.8 -54.2 General Financial 8236.87 -6.2 -12.9
General Growth Properties 27.03 1.23 4.77 Amec Foster Wheeler 392.00 8.41 2.17 Ferrovial 19.26 0.28 1.45 Sony 2622.50 40.00 1.55 Antofagasta 350.00 -9.7 -25.4 Greggs 995.00 -18.8 -24.3 Exillon Energy 81.25 -18.8 -24.1 Real Estate & Investment Servic 2766.33 -5.6 -9.9
Chipotle Mexican Grill 475.94 21.64 4.76 Moneysupermarket.com 320.00 6.30 2.01 Philips Kon 22.65 0.29 1.27 Japan Tobacco . 4141.00 61.00 1.50 Provident Fin 2903.00 -9.3 -13.8 Ashmore 199.00 -16.2 -22.4 Nanoco 42.50 -17.5 -26.1 Industrial Metals 576.64 -5.4 -19.2
Freeport-mcmoran 4.35 0.15 3.57 Rathbone Brothers 2169.00 42.65 2.01 Dassault Systemes 65.23 0.74 1.15 Denso 5121.00 70.00 1.39 Johnson Matthey 2394.00 -8.8 -14.8 Virgin Money Holdings (uk) 289.70 -15.5 -23.9 Johnston Press 35.63 -15.1 -30.0 Software & Computer Services 1527.19 -5.3 -7.7
Hargreaves Lansdown 1239.00 -8.2 -17.7 Moneysupermarket.com 320.00 -15.1 -12.8 Wanton 160.50 -15.0 -17.8 Construction & Materials 4627.63 -5.2 -10.6
Downs Downs Downs Downs
Taylor Wimpey 179.80 -7.7 -11.5 Aldermore 188.00 -14.5 -18.8 Hochschild Mining 40.00 -14.9 -17.1 Travel & Leisure 8342.69 -5.1 -7.8
Williams Companies 16.10 -2.19 -11.97 Allied Minds 295.00 -31.47 -9.54 Casino Guichard 36.65 -3.38 -8.44 Softbank . 5111.00 -437.00 -7.88
Hikma Pharmaceuticals 1991.00 -7.7 -13.5 Zoopla Property 199.30 -13.9 -16.8 Petropavlovsk 5.43 -13.1 -16.7 Banks 3359.23 -5.0 -12.0
Consol Energy 4.99 -0.63 -11.21 Vedanta Resources 205.80 -19.50 -8.66 Credit Agricole 9.06 -0.64 -6.61 Ihi 259.00 -17.00 -6.16
Int Consolidated Airlines S.a. 545.50 -7.5 -10.6 Michael Page Int 386.90 -13.4 -20.1 Enquest 13.50 -12.9 -28.9 Electricity 8104.39 -4.1 -8.0
Marathon Oil 8.14 -0.93 -10.25 Pets At Home 231.20 -13.60 -5.56 Natixis 4.02 -0.24 -5.70 Mitsui Fudosan Co., 2687.50 -100.50 -3.60
Lloyds Banking 63.96 -7.2 -12.5 Hays 113.40 -12.7 -22.3 Int Biotechnology Trust 442.50 -12.9 -18.7 Industrial Transportation 2413.23 -3.8 -7.2
Intel 29.76 -2.98 -9.10 Card Factory 328.40 -19.30 -5.53 B. Sabadell 1.50 -0.07 -4.52 Okuma 865.00 -31.00 -3.46
Royal Bank Of Scotland 260.20 -7.2 -13.8 Ocado 242.50 -12.4 -20.3 Gem Diamonds 100.00 -12.9 -24.0 Real Estate Investment Trusts 2992.30 -3.8 -8.1
Anadarko Petroleum 32.02 -2.98 -8.51 Morgan Advanced Materials 211.60 -11.30 -5.07 Aegon 5.10 -0.19 -3.56 Kobe Steel, 113.00 -4.00 -3.42
Merlin Entertainments 404.30 -7.0 -10.6 Thomas Cook 105.50 -12.2 -12.9 Brammer 139.25 -12.4 -23.6 Mobile Telecommunications 4912.39 -3.7 -3.9
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jan 18 Currency Mid Change Mid Change Mid Change Jan 18 Currency Mid Change Mid Change Mid Change Jan 18 Currency Mid Change Mid Change Mid Change Jan 18 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 13.4220 0.0475 14.5971 -0.0506 19.1579 0.0203 Indonesia Indonesian Rupiah 13932.5000 38.0000 15152.2728 -64.9068 19886.5275 4.8236 Poland Polish Zloty 4.1010 0.0737 4.4600 0.0493 5.8535 0.0908 ..Three Month 0.7006 0.0017 0.7618 -0.0034 - -
Australia Australian Dollar 1.4543 0.0007 1.5817 -0.0103 2.0758 -0.0041 Israel Israeli Shekel 3.9530 -0.0079 4.2990 -0.0389 5.6422 -0.0254 Romania Romanian Leu 4.1699 0.0264 4.5350 -0.0030 5.9519 0.0230 ..One Year 0.7009 0.0017 0.7611 -0.0034 - -
Bahrain Bahrainin Dinar 0.3771 0.0001 0.4101 -0.0028 0.5383 -0.0013 Japan Japanese Yen 117.3950 0.5300 127.6726 -0.3172 167.5635 0.3412 Russia Russian Ruble 79.1263 1.4137 86.0536 0.9433 112.9407 1.7417 United States United States Dollar - - 1.0875 -0.0076 1.4273 -0.0036
Bolivia Bolivian Boliviano 6.9100 - 7.5150 -0.0528 9.8630 -0.0246 ..One Month 117.3949 0.5299 127.6727 -0.3172 167.5634 0.3410 Saudi Arabia Saudi Riyal 3.7502 0.0014 4.0785 -0.0271 5.3528 -0.0113 ..One Month - - 1.0875 -0.3434 1.4274 -0.0036
Brazil Brazilian Real 4.0315 -0.0186 4.3844 -0.0512 5.7544 -0.0409 ..Three Month 117.3947 0.5295 127.6727 -0.3171 167.5632 0.3405 Singapore Singapore Dollar 1.4393 -0.0008 1.5653 -0.0119 2.0543 -0.0063 ..Three Month - - 1.0873 -0.3434 1.4274 -0.0036
Canada Canadian Dollar 1.4517 0.0032 1.5788 -0.0076 2.0721 -0.0006 ..One Year 117.3936 0.5272 127.6727 -0.3171 167.5634 0.3395 South Africa South African Rand 16.7545 -0.0292 18.2213 -0.1602 23.9145 -0.1014 ..One Year - - 1.0862 -0.3433 1.4277 -0.0036
Chile Chilean Peso 730.2300 -1.1950 794.1599 -6.8926 1042.2924 -4.3050 Kenya Kenyan Shilling 102.4500 0.0500 111.4192 -0.7286 146.2318 -0.2925 South Korea South Korean Won 1210.9500 -1.7000 1316.9659 -11.1215 1728.4471 -6.7361 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0195 6.8570 -0.0269 8.9994 0.0055
China Chinese Yuan 6.5793 -0.0077 7.1553 -0.0587 9.3910 -0.0344 Kuwait Kuwaiti Dinar 0.3043 0.0004 0.3309 -0.0019 0.4343 -0.0005 Sweden Swedish Krona 8.5886 0.0161 9.3405 -0.0480 12.2588 -0.0075 Vietnam Vietnamese Dong 22400.0000 -16.5000 24361.0700 -189.4107 31972.6825 -103.1704
Colombia Colombian Peso 3301.1300 8.6300 3590.1370 -15.7913 4711.8625 0.6171 Malaysia Malaysian Ringgit 4.3965 -0.0035 4.7814 -0.0375 6.2753 -0.0206 Switzerland Swiss Franc 1.0066 0.0079 1.0947 0.0009 1.4368 0.0077 European Union Euro 0.9195 0.0064 - - 1.3124 0.0059
Costa Rica Costa Rican Colon 533.7400 - 580.4676 -4.0814 761.8327 -1.8968 Mexico Mexican Peson 18.2455 0.0537 19.8428 -0.0807 26.0427 0.0121 Taiwan New Taiwan Dollar 33.6155 0.0010 36.5585 -0.2560 47.9810 -0.1180 ..One Month 0.9194 0.0064 - - 1.3124 0.0059
Czech Republic Czech Koruna 24.8573 0.1850 27.0334 0.0125 35.4799 0.1764 New Zealand New Zealand Dollar 1.5516 -0.0019 1.6874 -0.0140 2.2147 -0.0083 Thailand Thai Baht 36.3155 -0.0500 39.4948 -0.3325 51.8349 -0.2006 ..Three Month 0.9192 0.0064 - - 1.3123 0.0059
Denmark Danish Krone 6.8622 0.0476 7.4630 -0.0003 9.7947 0.0437 Nigeria Nigerian Naira 199.2500 - 216.6939 -1.5236 284.3991 -0.7081 Tunisia Tunisian Dinar 2.0428 0.0091 2.2216 -0.0057 2.9157 0.0058 ..One Year 0.9181 0.0064 - - 1.3116 0.0059
Egypt Egyptian Pound 7.8302 0.1494 8.5157 0.1037 11.1763 0.1859 Norway Norwegian Krone 8.8975 0.0870 9.6765 0.0272 12.6998 0.0929 Turkey Turkish Lira 3.0316 -0.0108 3.2970 -0.0350 4.3271 -0.0262
Hong Kong Hong Kong Dollar 7.8000 0.0030 8.4828 -0.0564 11.1332 -0.0234 Pakistan Pakistani Rupee 104.9150 -0.0100 114.1001 -0.8132 149.7502 -0.3872 United Arab Emirates UAE Dirham 3.6723 -0.0007 3.9937 -0.0288 5.2416 -0.0140
Hungary Hungarian Forint 290.0511 3.2998 315.4443 1.3960 414.0038 3.6909 Peru Peruvian Nuevo Sol 3.4290 -0.0015 3.7292 -0.0279 4.8944 -0.0143 United Kingdom Pound Sterling 0.7006 0.0017 0.7619 -0.0035 - -
India Indian Rupee 67.6850 0.0375 73.6107 -0.4765 96.6100 -0.1869 Philippines Philippine Peso 47.6550 -0.0850 51.8271 -0.4575 68.0203 -0.2910 ..One Month 0.7006 0.0017 0.7619 -0.0035 - -
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 18 Jan 15 Jan 14 Jan 13 Jan 12 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2697.20 2715.80 2758.00 2785.40 2772.30 0.00 2875.90 2698.60 Food & Drug Retailer 1.64 FTSE SmallCap Index -5.87 Electronic & Elec Eq -8.12 FTSE 100 Price Change FTSE 100 Price Change
Jan 18 chge% Index Jan 15 Jan 14 ago yield% Cover ratio adj Return FT 30 Div Yield 1.85 1.84 1.82 1.80 1.81 0.00 3.93 2.74 Leisure Goods -0.38 Health Care -5.88 Chemicals -8.18 3I Group PLC 426.10 -6.90 Kingfisher PLC 327.50 -6.70
FTSE 100 (100) 5779.92 -0.42 5908.21 5804.10 5918.23 6585.53 4.30 1.46 15.91 0.97 4529.40 P/E Ratio net 24.11 24.21 24.50 24.84 24.69 0.00 19.44 14.26 Gas Water & Multi -1.71 Media -5.98 Construct & Material -8.35 Aberdeen Asset Management PLC 223.60 -2.80 Land Securities Group PLC 1068 -8.00
FTSE 250 (250) 15958.81 -1.25 16313.06 16160.60 16413.27 16067.19 2.83 1.93 18.31 8.09 11112.62 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Aerospace & Defense -1.96 NON FINANCIALS Index -6.06 Technology -8.38 Admiral Group PLC 1641 11.00 Legal & General Group PLC 239.00 -0.10
FTSE 250 ex Inv Co (209) 17303.10 -1.34 17687.18 17538.51 17816.34 17329.86 2.86 2.03 17.24 7.65 12285.13 FT 30 hourly changes Beverages -2.03 Equity Invest Instr -6.11 Oil & Gas Producers -8.51 Anglo American PLC 232.65 -0.10 Lloyds Banking Group PLC 63.96 -0.75
FTSE 350 (350) 3229.22 -0.56 3300.90 3247.53 3309.08 3603.59 4.04 1.52 16.29 0.74 5100.84 8 9 10 11 12 13 14 15 16 High Low Fixed Line Telecomms -2.63 Industrial Transport -6.30 Oil & Gas -8.56 Antofagasta PLC 350.00 -0.60 London Stock Exchange Group PLC 2436 32.00
FTSE 350 ex Investment Trusts (309) 3205.88 -0.56 3277.04 3224.00 3285.46 3582.96 4.07 1.52 16.10 0.68 2607.37 2715.8 2729.4 2711.4 2721.5 2708.1 2703.9 2695 2697.2 2704 2743 2691.8 Telecommunications -2.68 Industrials -6.34 Automobiles & Parts -8.66 Arm Holdings PLC 949.00 16.00 Marks And Spencer Group PLC 417.20 -5.60
FTSE 350 Higher Yield (108) 2931.10 -0.45 2996.16 2944.32 3008.76 3525.43 5.94 1.28 13.16 0.85 4748.88 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Mobile Telecomms -2.71 Software & Comp Serv -6.73 Industrial Eng -8.89 Ashtead Group PLC 950.00 -10.00 Merlin Entertainments PLC 404.30 -2.50
FTSE 350 Lower Yield (242) 3223.21 -0.68 3294.75 3245.27 3297.15 3329.66 2.12 2.20 21.46 0.54 3412.12 Utilities -2.85 Food Producers -6.92 Financials -9.68 Associated British Foods PLC 3002 16.00 Mondi PLC 1197 11.00
FTSE SmallCap (289) 4324.81 -0.87 4420.81 4362.79 4429.98 4378.63 3.03 1.35 24.40 4.72 5935.26 Tobacco -3.79 Real Est Invest & Tr -6.94 Tech Hardware & Eq -9.95
FTSE SmallCap ex Inv Co (154) 3929.96 -0.94 4017.20 3967.44 4032.61 3816.09 2.97 1.78 18.85 4.34 5663.72 FX: EFFECTIVE INDICES Consumer Goods -4.05 FTSE 100 Index -7.02 Oil Equipment & Serv -10.14
Astrazeneca PLC 4210.5 -19.50 National Grid PLC 926.00 -8.60
Aviva PLC 463.10 -1.40 Next PLC 6645 -95.00
FTSE All-Share (639) 3183.92 -0.57 3254.59 3202.33 3262.61 3540.97 4.00 1.52 16.48 0.83 5087.76
Jan 15 Jan 14 Mnth Ago Jan 18 Jan 15 Mnth Ago Personal Goods -4.81 FTSE All{HY-}Share Index -7.02 Banks -10.76 Babcock International Group PLC 932.50 -12.00 Old Mutual PLC 151.80 0.10
FTSE All-Share ex Inv Co (463) 3146.73 -0.57 3216.58 3164.76 3224.93 3507.34 4.05 1.53 16.15 0.72 2601.68 Nonlife Insurance -5.23 Electricity -7.21 Forestry & Paper -11.09 Bae Systems PLC 509.00 -4.50 Pearson PLC 692.00 -16.50
FTSE All-Share ex Multinationals (574) 1097.47 -1.09 929.79 1109.55 1129.73 1138.44 3.05 1.56 20.96 0.37 1871.43 Australia 87.05 88.42 91.37 Sweden 78.90 79.46 78.87 Household Goods & Ho -5.42 Support Services -7.26 Life Insurance -11.30 Barclays PLC 187.65 -4.15 Persimmon PLC 1884 -33.00
FTSE Fledgling (100) 7382.97 -0.82 7546.86 7444.14 7524.28 6996.44 2.61 1.18 32.39 7.84 13317.96 Canada 81.15 81.96 85.47 Switzerland 158.29 157.95 159.75 Pharmace & Biotech -5.72 FTSE 250 Index -7.28 Financial Services -12.35 Barratt Developments PLC 566.50 -12.00 Provident Financial PLC 2903 -68.00
FTSE Fledgling ex Inv Co (50) 10261.67 -1.05 10489.45 10370.55 10455.09 8822.10 2.75 1.44 25.21 0.00 17989.06 Denmark 106.56 106.09 106.11 UK 87.83 88.77 91.87 General Retailers -5.77 Health Care Eq & Srv -7.50 Basic Materials -14.69 Berkeley Group Holdings (The) PLC 3430 -80.00 Prudential PLC 1346.5 9.50
FTSE All-Small (389) 3001.85 -0.87 3068.48 3028.13 3074.05 3029.69 3.01 1.35 24.71 3.27 5289.59 Japan 132.39 131.38 127.02 USA 106.51 106.86 105.29 Consumer Services -5.86 Travel & Leisure -7.72 Mining -16.24 Bg Group PLC 928.60 -6.40 Randgold Resources LD 4372 -15.00
FTSE All-Small ex Inv Co Index (204) 2936.35 -0.95 3001.53 2964.47 3012.19 2835.78 2.96 1.77 19.04 3.12 5361.55 New Zealand 109.93 110.57 114.71 Euro 87.43 86.65 86.57 Real Est Invest & Se -7.96 Industrial Metals & -16.89 Bhp Billiton PLC 608.80 -6.20 Reckitt Benckiser Group PLC 6005 -3.00
FTSE AIM All-Share Index (853) 688.12 -1.46 703.39 698.29 708.34 697.55 1.59 0.66 95.51 0.32 740.92 Norway 83.46 83.96 83.72
BP PLC 340.50 2.35 RELX PLC 1144 -15.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3612 17.00 Rio Tinto PLC 1632.5 -11.00
Oil & Gas (18) 5456.96 -0.36 5578.09 5476.63 5625.32 7394.28 6.90 0.20 72.57 0.00 4570.55 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 712.00 -3.00 Rolls-Royce Holdings PLC 538.50 -5.50
Oil & Gas Producers (11) 5190.29 -0.39 5305.50 5210.41 5354.58 7048.65 6.93 0.16 89.21 0.00 4495.07 Bt Group PLC 459.40 -3.90 Royal Bank Of Scotland Group PLC 260.20 -4.30
Oil Equipment Services & Distribution (7)12315.03 0.41 12588.39 12264.16 12413.67 15585.15 6.19 1.41 11.47 0.00 9057.20 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1760 -19.00 Royal Dutch Shell PLC 1337.5 -14.00
Basic Materials (28) 2329.28 -0.43 2380.99 2339.24 2451.72 4488.21 8.80 1.88 6.05 1.30 2285.08 Burberry Group PLC 1121 1.00 Royal Dutch Shell PLC 1338.5 -12.50
Chemicals (7) 10494.39 -0.74 10727.34 10572.68 10754.66 12546.07 2.73 2.27 16.13 35.08 9050.63 Jan 18 No of US $ Day Mth YTD Total
YTD Gr Div Jan 18 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1136 -6.00 Royal Mail PLC 429.50 1.60
Forestry & Paper (1) 14068.98 0.93 14381.27 13939.69 14468.60 12635.05 2.56 3.37 11.56 0.00 14614.47 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3656 49.00 Rsa Insurance Group PLC 399.00 -4.30
Industrial Metals & Mining (2) 589.63 -3.02 602.72 607.99 636.24 1554.73 1.95 -18.64 -2.75 0.00 514.56 FTSE Global All Cap 7742 411.02 -1.8 -7.8 -8.9 562.66
-8.8 2.7 Oil & Gas 164 273.85 -3.0 -3.0 -10.2 418.57 -10.2 4.7 Centrica PLC 205.20 -1.80 Sabmiller PLC 4123 41.00
Mining (18) 5877.17 -0.45 6007.63 5903.79 6231.24 12773.53 10.62 1.85 5.09 0.00 3017.44 FTSE Global All Cap 7105 422.82 -1.8 -7.8 -8.9 568.67
-8.8 2.7 Oil & Gas Producers 116 258.00 -2.8 -2.8 -9.6 401.33 -9.6 4.6 Coca-Cola Hbc AG 1371 5.00 Sage Group PLC 555.00 -2.00
FTSE Global Large Cap 1416 364.27 -1.8 -7.7 -8.6 510.12
-8.6 2.9 Oil Equipment & Services 39 241.96 -3.7 -3.7 -12.8 337.35 -12.8 5.4 Compass Group PLC 1143 22.00 Sainsbury (J) PLC 239.50 -4.40
Industrials (119) 4031.59 -1.40 4121.08 4088.67 4160.59 4326.60 2.73 1.19 30.73 0.99 4007.06
Construction & Materials (14) 4828.09 -1.97 4935.26 4925.33 5040.15 4325.72 2.43 -0.81 -50.86 0.00 4933.58 FTSE Global Mid Cap 1637 546.67 -1.6 -7.9 -9.2 714.20
-9.2 2.3 Basic Materials 261 311.16 -1.7 -1.7 -11.4 456.19 -11.4 3.8 Crh PLC 1753 -31.00 Schroders PLC 2523 -24.00
Aerospace & Defense (9) 4174.16 -1.18 4266.81 4223.80 4286.55 4992.70 2.74 0.96 38.08 1.32 4316.54 FTSE Global Small Cap 4689 565.06 -1.5 -8.5 -9.9 717.04
-9.9 2.2 Chemicals 122 531.34 -1.4 -1.4 -10.2 781.28 -10.2 2.9 Dcc PLC 5005 -135.00 Severn Trent PLC 2071 -13.00
General Industrials (6) 3397.87 -0.81 3473.29 3425.56 3455.14 3145.46 3.36 1.67 17.87 0.00 3699.16 FTSE All-World 3053 240.72 -1.8 -7.7 -8.7 347.66
-8.7 2.8 Forestry & Paper 16 176.85 -2.0 -2.0 -9.8 284.06 -9.8 3.8 Diageo PLC 1779.5 -11.50 Shire PLC 4250 71.00
Electronic & Electrical Equipment (10) 4853.38 -1.72 4961.11 4938.07 5082.21 5079.77 2.54 1.97 20.01 0.00 4298.19 FTSE World 2538 427.46 -1.8 -7.7 -8.6 828.93
-8.5 2.8 Industrial Metals & Mining 67 218.40 -1.8 -1.8 -15.1 321.63 -15.1 3.8 Direct Line Insurance Group PLC 369.10 -0.50 Sky PLC 1032 -15.00
Industrial Engineering (14) 6875.13 -1.30 7027.74 6965.80 7130.00 9121.20 3.56 1.57 17.83 0.00 8050.16 FTSE Global All Cap ex UNITED KINGDOM In 7418 422.80 -1.7 -7.7 -8.8 570.76
-8.7 2.6 Mining 56 278.11 -2.6 -2.6 -14.1 407.55 -14.1 7.6 Dixons Carphone PLC 442.10 -3.30 Smith & Nephew PLC 1103 -
Industrial Transportation (8) 3653.56 -0.94 3734.66 3688.05 3748.75 4111.31 4.15 0.94 25.66 0.00 3073.63 FTSE Global All Cap ex USA 5738 378.50 -1.4 -7.1 -9.3 549.46
-9.3 3.3 Industrials 534 272.40 -1.5 -1.5 -9.0 378.68 -8.9 2.5 Easyjet PLC 1601 -11.00 Smiths Group PLC 882.00 -14.00
Support Services (58) 6095.71 -1.46 6231.02 6185.96 6291.40 6395.19 2.49 1.51 26.52 2.30 6119.28 FTSE Global All Cap ex JAPAN 6480 417.45 -2.0 -8.2 -9.0 576.51
-9.0 2.8 Construction & Materials 109 379.98 -1.3 -1.3 -9.3 552.95 -9.3 2.4 Experian PLC 1122 -7.00 Sports Direct International PLC 390.00 -19.40
FTSE Developed 2102 390.37 -1.8 -7.6 -8.5 538.39
-8.5 2.7 Aerospace & Defense 28 470.29 -2.0 -2.0 -7.2 648.21 -7.1 2.3 Fresnillo PLC 674.50 -15.50 Sse PLC 1413 -11.00
Consumer Goods (40) 17594.41 0.20 17984.96 17559.94 17698.78 16464.35 3.12 1.73 18.53 0.46 12412.08
FTSE Developed All Cap 5736 408.54 -1.7 -7.7 -8.7 557.38
-8.6 2.7 General Industrials 56 198.77 -1.6 -1.6 -8.4 296.72 -8.4 2.8 Gkn PLC 281.50 -0.20 St. James's Place PLC 899.50 7.00
Automobiles & Parts (1) 6615.38 -0.07 6762.22 6620.08 6761.08 8589.42 3.02 1.53 21.63 0.00 6083.77
FTSE Developed Large Cap 916 361.71 -1.8 -7.5 -8.4 505.68
-8.3 2.8 Electronic & Electrical Equipment 69 282.10 -1.0 -1.0 -10.8 361.62 -10.8 2.1 Glaxosmithkline PLC 1365.5 2.00 Standard Chartered PLC 489.10 -7.20
Beverages (6) 15125.07 0.07 15460.80 15114.79 15174.56 14418.75 2.53 1.65 24.03 0.00 10302.04
FTSE Developed Europe Large Cap 219 300.38 -1.8 -7.8 -9.0 473.38
-9.0 3.9 Industrial Engineering 104 482.28 -1.5 -1.5 -10.0 660.06 -9.9 3.0 Glencore PLC 75.15 1.65 Standard Life PLC 359.70 -1.20
Food Producers (10) 8278.16 -0.27 8461.92 8300.55 8319.39 8211.88 1.98 1.39 36.23 3.94 6930.74
FTSE Developed Europe Mid Cap 302 463.77 -2.0 -8.6 -9.5 664.46
-9.5 2.8 Industrial Transportation 96 447.44 -1.6 -1.6 -9.6 620.40 -9.6 2.7 Hammerson PLC 568.50 -2.50 Taylor Wimpey PLC 179.80 -4.10
Household Goods & Home Construction (13)12899.34 -1.05 13185.67 13036.47 13177.46 10550.16 2.26 2.54 17.46 0.00 8775.06
FTSE Dev Europe Small Cap 720 658.33 -1.8 -8.4 -10.0 918.69
-10.0 2.5 Support Services 72 253.49 -1.4 -1.4 -8.1 338.75 -8.1 2.1 Hargreaves Lansdown PLC 1239 19.00 Tesco PLC 161.55 -2.90
Leisure Goods (2) 5328.48 -2.36 5446.76 5457.33 5434.15 5003.72 4.49 1.32 16.83 0.00 4512.89
FTSE North America Large Cap 318 401.12 -2.3 -8.2 -8.1 528.56
-8.0 2.5 Consumer Goods 422 384.82 -1.0 -1.0 -7.6 547.47 -7.6 2.6 Hikma Pharmaceuticals PLC 1991 -34.00 Travis Perkins PLC 1804 -35.00
Personal Goods (6) 21686.25 1.29 22167.62 21409.71 21556.19 22198.24 3.01 3.01 11.04 0.00 13991.23
FTSE North America Mid Cap 394 578.75 -2.0 -9.1 -9.6 714.70
-9.6 2.0 Automobiles & Parts 103 336.43 -1.0 -1.0 -11.9 459.62 -11.9 2.9 HSBC Holdings PLC 479.70 -6.00 Tui AG 1171 -7.00
Tobacco (2) 44660.57 0.83 45651.91 44295.07 44748.17 41910.28 4.47 1.18 19.03 0.00 27217.16
FTSE North America Small Cap 1521 574.63 -1.7 -9.8 -10.4 690.63
-10.4 2.0 Beverages 48 541.76 -0.8 -0.8 -5.3 781.65 -5.3 2.6 Imperial Tobacco Group PLC 3568 53.50 Unilever PLC 2843 44.50
Health Care (19) 8931.83 0.00 9130.09 8931.41 9042.16 9658.25 3.91 3.53 7.24 0.18 6512.69
FTSE North America 712 267.09 -2.2 -8.3 -8.3 360.64
-8.3 2.4 Food Producers 106 521.13 -1.2 -1.2 -6.7 763.26 -6.6 2.4 Inmarsat PLC 1040 8.00 United Utilities Group PLC 905.50 -4.50
Health Care Equipment & Services (7) 6796.88 -0.37 6947.75 6822.14 6939.82 6786.16 1.67 2.16 27.71 1.60 5764.13
FTSE Developed ex North America 1390 206.84 -1.1 -6.5 -8.8 322.10
-8.7 3.3 Household Goods & Home Construction 47 370.90 -1.2 -1.2 -7.6 524.42 -7.6 2.5 Intercontinental Hotels Group PLC 2246 -22.00 Vodafone Group PLC 213.45 -2.80
Pharmaceuticals & Biotechnology (12)12074.86 0.04 12342.89 12070.15 12214.46 13160.41 4.12 3.58 6.78 0.00 7820.56
FTSE Japan Large Cap 177 304.05 0.6 -3.3 -7.2 380.33
-7.2 2.2 Leisure Goods 28 119.10 0.1 0.1 -9.7 153.31 -9.7 1.5 International Consolidated Airlines Group S.A. 545.50 -5.50 Whitbread PLC 3900 -82.00
Consumer Services (97) 4583.45 -0.92 4685.19 4626.16 4680.48 4668.36 2.48 1.60 25.26 1.00 4138.03 FTSE Japan Mid Cap 303 463.67 1.2 -2.1 -5.7 560.23
-5.7 1.7 Personal Goods 79 555.59 -0.8 -0.8 -7.0 753.04 -7.0 2.1
Food & Drug Retailers (7) 2600.37 -1.95 2658.09 2652.11 2713.39 3272.86 2.06 -1.50 -32.34 0.00 2973.54 Intertek Group PLC 2655 -1.00 Wolseley PLC 3295 -59.00
FTSE Global wi JAPAN Small Cap 782 493.70 0.8 -2.2 -6.2 615.67
-6.2 1.9 Tobacco 11 1174.51 -1.5 -1.5 -3.5 2295.21 -3.5 4.1 Intu Properties PLC 288.00 -5.30 Worldpay Group PLC 301.90 -1.60
General Retailers (32) 2730.10 -1.49 2790.70 2771.48 2787.97 2843.68 2.66 2.24 16.80 1.98 2994.63
FTSE Japan 480 126.93 0.7 -3.0 -6.9 178.40
-6.9 2.1 Health Care 173 424.10 -1.3 -1.3 -7.5 591.02 -7.4 2.0 Itv PLC 257.50 -1.90 Wpp PLC 1420 -15.00
Media (22) 6984.88 -1.12 7139.93 7064.08 7156.02 6812.60 2.93 1.62 21.10 1.47 4124.62
FTSE Asia Pacific Large Cap ex Japan 530 484.39 -1.3 -6.6 -10.5 724.62
-10.5 3.6 Health Care Equipment & Services 61 607.78 -1.5 -1.5 -6.4 697.12 -6.4 1.1 Johnson Matthey PLC 2394 -20.00
Travel & Leisure (36) 8153.63 -0.14 8334.62 8165.19 8253.59 7949.52 2.11 1.95 24.31 0.00 7430.82
FTSE Asia Pacific Mid Cap ex Japan 430 671.17 -1.6 -5.3 -10.1 968.38
-10.1 3.2 Pharmaceuticals & Biotechnology 112 320.80 -1.3 -1.3 -7.8 464.54 -7.7 2.3
Telecommunications (7) 3850.97 -1.03 3936.45 3891.15 3948.66 3830.46 4.25 0.18 128.51 0.00 4035.26 FTSE Asia Pacific Small Cap ex Japan 1424 453.16 -1.2 -5.2 -9.2 645.06
-9.2 3.0 Consumer Services 386 359.06 -1.6 -1.6 -7.9 466.61 -7.8 1.8
Fixed Line Telecommunications (5) 5217.45 -0.88 5333.26 5263.53 5312.40 4736.06 2.97 1.74 19.35 0.00 4524.84
Mobile Telecommunications (2) 4904.96 -1.14 5013.84 4961.55 5053.66 5169.55 5.13 -0.44 -44.38 0.00 4587.46
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960
2006
384.59
508.81
-1.3
-2.0
-6.5
-8.8
-10.4 611.50
-10.4
-10.9 725.78
-10.9
3.5 Food & Drug Retailers
3.5 General Retailers
53 279.55
121 487.79
-1.5
-1.4
-1.5
-1.4
-6.8 378.03
-8.5 618.55
-6.7
-8.4
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8094.30 -0.81 8273.97 8160.01 8252.48 8619.72 5.01 1.36 14.65 0.00 8620.19 FTSE Emerging Large Cap 500 477.88 -2.0 -9.4 -11.3 685.86
-11.3 3.6 Media 87 267.42 -2.4 -2.4 -7.6 348.32 -7.5 2.0 Jan 18 Jan 15 Jan 14 Jan 13 Jan 12 Yr Ago
Electricity (2) 8085.99 -0.84 8265.48 8154.67 8357.16 8826.86 6.24 1.35 11.91 0.00 10756.68 FTSE Emerging Mid Cap 451 640.86 -2.4 -7.1 -9.8 909.78
-9.7 3.2 Travel & Leisure 125 350.94 -1.0 -1.0 -8.0 460.43 -8.0 1.9 SEAQ Bargains 5822.00 4615.00 4615.00 4838.00 5172.00 5618.00
Gas Water & Multiutilities (5) 7652.02 -0.80 7821.87 7713.43 7775.13 8098.69 4.70 1.37 15.53 0.00 8181.41 FTSE Emerging Small Cap 1055 554.82 -1.6 -6.9 -9.9 762.80
-9.9 3.2 Telecommunication 92 148.90 -1.2 -1.2 -5.5 263.04 -5.1 4.4 Order Book Turnover (m) 29.15 61.86 61.86 49.11 - -
Financials (285) 4096.33 -0.81 4187.26 4129.81 4238.34 4624.95 4.00 1.87 13.35 2.84 3580.10 FTSE Emerging Europe 99 238.67 -4.0 -10.9 -10.6 350.72
-10.6 4.7 Fixed Line Telecommuniations 44 127.17 -1.0 -1.0 -4.1 246.37 -3.4 4.9 Order Book Bargains 852007.00 1150925.00 1150925.00 1174401.00 205.00 113.00
Banks (9) 3316.90 -1.41 3390.52 3364.26 3477.00 4189.10 4.95 1.37 14.78 0.00 2286.44 FTSE Latin America All Cap 243 533.32 -3.2 -12.6 -10.9 788.38
-10.8 4.1 Mobile Telecommunications 48 152.59 -1.4 -1.4 -7.4 243.51 -7.4 3.8 Order Book Shares Traded (m) 1385.00 1847.00 1847.00 1851.00 1.00 0.00
Nonlife Insurance (11) 2676.55 -0.36 2735.96 2686.31 2683.44 2310.50 2.81 2.06 17.25 0.00 4498.23 FTSE Middle East and Africa All Cap 220 537.18 -2.7 -11.7 -13.2 800.96
-13.1 3.1 Utilities 161 229.74 -1.1 -1.1 -3.2 421.23 -3.1 4.1 Total Equity Turnover (£m) 2513.48 3758.28 3758.28 3491.92 0.15 -
Life Insurance/Assurance (11) 7055.11 0.17 7211.72 7042.87 7234.31 7796.23 4.30 1.59 14.66 0.00 6476.67 FTSE Global wi UNITED KINGDOM All Cap In 324 296.58 -2.5 -8.5 -9.8 468.80
-9.8 4.1 Electricity 110 252.41 -1.0 -1.0 -2.5 458.07 -2.4 3.8 Total Mkt Bargains 962624.00 1295745.00 1295745.00 1294568.00 329.00 115.00
Index- Real Estate Investment & Services (21) 2807.71 -1.10 2870.03 2838.82 2901.89 2709.94 2.26 5.73 7.72 0.57 7219.49 FTSE Global wi USA All Cap 2004 458.76 -2.1 -8.4 -8.5 588.40
-8.4 2.3 Gas Water & Multiutilities 51 240.88 -1.2 -1.2 -4.4 452.59 -4.3 4.5 Total Shares Traded (m) 3939.00 4746.00 4746.00 4767.00 3.00 0.00
Real Estate Investment Trusts (25) 2723.44 -0.92 2783.89 2748.72 2802.84 2883.47 3.23 5.96 5.19 5.27 3224.48 FTSE Europe All Cap 1400 346.17 -1.9 -8.1 -9.2 529.06
-9.2 3.6 Financials 675 179.46 -2.2 -2.2 -10.6 278.97 -10.5 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7051.58 -0.48 7208.10 7085.81 7331.12 7229.61 3.29 2.19 13.87 24.67 7677.82 FTSE Eurobloc All Cap 637 327.09 -1.4 -8.1 -8.8 505.68
-8.8 3.3 Banks 243 157.26 -2.7 -2.7 -11.9 260.53 -11.8 3.8 (c) Market closed.
Equity Investment Instruments (176) 7184.75 -0.70 7344.23 7235.53 7338.70 7556.83 2.81 1.08 32.97 7.10 3781.94 FTSE RAFI All World 3000 3006 4943.18 -1.8 -7.7 -8.9 6230.66
-8.8 3.4 Nonlife Insurance 71 199.79 -1.3 -1.3 -6.8 278.10 -6.8 2.5
Non Financials (354) 3723.18 -0.49 3805.83 3741.62 3802.35 4117.86 4.01 1.39 17.94 0.41 5214.52 FTSE RAFI US 1000 998 8125.11 -2.1 -8.0 -8.1 10281.97
-8.0 2.8 Life Insurance 51 172.64 -2.4 -2.4 -12.9 261.95 -12.9 3.3
Technology (19) 1327.44 0.50 1356.90 1320.83 1357.17 1257.13 1.52 1.98 33.19 0.00 1659.94 FTSE EDHEC-Risk Efficient All-World 3053 289.58 -1.5 -6.9 -8.2 389.33
-8.2 2.5 Financial Services 141 196.67 -2.5 -2.5 -11.6 262.12 -11.5 2.2 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1714.44 -0.43 1752.49 1721.89 1761.49 1385.62 2.08 1.82 26.43 0.00 2247.40 FTSE EDHEC-Risk Efficient Developed Europe 521 255.66 -1.6 -7.3 -8.4 373.28
-8.4 2.9 Technology 185 158.49 -2.8 -2.8 -9.1 189.13 -9.0 1.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1451.66 1.30 1483.89 1432.99 1478.00 1553.64 1.05 2.25 42.34 0.00 1666.37 Software & Computer Services 85 284.72 -2.6 -2.6 -8.2 326.83 -8.2 1.2 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 113.72 -2.9 -2.9 -10.0 139.59 -10.0 2.8 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 5801.24 5828.94 5801.83 5830.56 5806.95 5797.56 5779.19 5780.33 5793.33 5851.64 5766.53 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 16154.28 16185.78 16062.89 16061.29 16017.89 16008.31 15991.64 15987.10 15974.83 16225.07 15952.57 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4361.72 4362.20 4351.66 4344.78 4344.79 4340.56 4337.52 4334.08 4329.38 4364.84 4324.81
FTSE All-Share 3200.84 3214.04 3197.72 3210.08 3198.30 3193.73 3185.04 3185.30 3190.45 3225.27 3181.61 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:08:30:00 Day's Low09:45:45 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5804.10(15/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:08:30:00 Day's Low14:44:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3202.33(15/01/2016)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Bankers Investment Trust Pre 56.678 26.705 17.22 15.05 4 3.8 Jan 29 7.9 7.5 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- 12/24 144.00 AIM DNL Diurnal Group PLC 146.50 -2.00 155.00 148.00 7648.9
460p nil 19-01-16 746.50 732.00 RPC Group PLC 738.50 -1.00 12/17 2.00 LVRT Levrett PLC 2.25 -0.18 3.10 1.75 215.4
12/17 100.00 AIM PURP Purplebricks Group PLC 75.50 -1.90 106.50 75.00 18139.6
12/11 3.50 AIM WEY Wey Education PLC 4.25 0.00 4.37 3.88 399.4

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Tuesday 19 January 2016 FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) ArcherDan 31.51 -1.85 53.31 31.16 3.24 11.52 18803.27 Lockheed 215.99 -0.43 227.91 181.91 2.62 20.29 66372.75
ANZ 24.41 -0.50 37.25 24.16 10.19 9.86 48969.38 Nokia 6.50 -0.10 7.87 4.91 2.08 -46.23 28225.79 AstellasPh 1559.5 -26.00 2047 1514.5 1.90 21.91 29515.17 AtlasCpcoB 173.90 1.00 270.00 170.80 1.66 15.67 7901.11 AT&T♦ 33.99 -0.31 36.45 30.97 5.22 37.94 209106.48 Lowes♦ 68.99 -0.64 78.13 64.22 1.37 23.51 63133.07
BHPBilltn 14.63 -0.44 34.29 14.45 15.95 16.97 32308.39 SampoA 43.62 -0.35 49.40 39.20 4.32 14.98 26508.82 Bridgestne 3963 20.00 5182 3753.5 2.80 12.44 27448.57 Ericsson 75.75 2.20 120.00 73.30 4.33 24.02 29149.7 AutomData 77.92 -1.07 90.67 64.29 2.38 27.46 35937.22 Lyondell 74.98 -1.39 107.32 72.76 3.73 8.52 33699.3
CmwBkAu 78.39 -0.49 96.69 70.15 7.65 14.61 92038.56 France (€) Canon 3278 -31.00 4539 3234 4.51 17.69 37242.44 H&M 276.00 -0.70 368.50 273.20 3.32 22.52 53187.08 Avago Tech 119.97 -5.22 150.50 99.16 1.20 26.16 33170.45 Marathon Ptl 41.42 -2.24 60.38 38.52 2.44 6.94 22075.79
CSL 102.69 -0.59 107.18 81.48 1.38 26.60 32679.03 Airbus Grpe 55.85 -0.30 68.50 45.76 2.08 15.95 47701.47 CntJpRwy 20840 160.00 24800 18210 0.53 15.16 36569.19 Investor 280.70 -1.10 363.40 272.70 3.09 14.13 24899.25 BakerHu 39.89 -1.28 70.45 38.62 1.61 -67.71 17395.5 Marsh&M 52.21 -1.36 59.99 50.90 2.64 20.14 27235.25
NatAusBk 26.69 -0.32 39.71 26.39 10.13 11.35 48410.72 AirLiquide 93.52 -0.81 123.95 93.37 2.54 19.70 35000.98 Denso 5121 70.00 6548 4927 2.22 17.04 38564.81 Nordea Bk 86.50 -0.75 115.50 86.00 6.48 10.43 40789.29 BankAm 14.46 -0.53 18.48 14.13 1.31 11.47 150564.46 MasterCard♦ 88.71 -2.00 101.76 74.61 0.68 28.89 97601.72
Telstra 5.38 0.05 6.74 5.06 8.08 15.46 45226.37 AXA 22.39 -0.38 26.02 19.28 3.95 11.54 59084.72 EastJpRwy 10405 -60.00 12815 8918 1.11 20.88 34788.21 SEB 78.00 -0.35 111.50 77.60 5.88 10.08 19707.81 Baxter 35.10 -0.21 43.44 32.18 4.51 11.13 19200.32 McDonald's 115.18 -1.44 120.23 87.50 2.79 26.41 105761.71
Wesfarmers 40.12 0.80 46.95 36.65 8.35 18.33 31066.12 BNP Parib 44.33 -1.05 61.00 43.96 3.27 7.95 60079.86 Fanuc 18310 -205.00 28575 17855 3.90 18.91 32120.63 SvnskaHn 100.50 -0.30 426.00 99.40 4.00 13.58 21903.05 BB & T 33.14 -0.88 41.90 32.73 2.91 13.00 25854.18 McGraw Hill 83.22 -1.68 109.13 81.59 1.46-239.98 22494.37
Westpc 30.77 -0.32 40.07 29.10 8.21 13.22 70576.69 ChristianDior 145.25 -0.75 195.35 142.05 2.17 10.97 28706.75 FastRetail 36730 -270.00 61970 35730 0.86 46.47 33187.83 Swedbank 170.60 0.10 223.90 169.00 6.42 12.54 22485.78 BectonDick 142.43 -2.98 157.50 128.87 1.59 45.01 30218.77 McKesson 165.00 0.22 243.61 156.31 0.57 19.64 37968
Woolworths 23.65 0.99 34.71 22.42 8.52 13.69 20667.7 Cred Agr 9.06 -0.64 14.49 8.87 3.74 20.01 26002.89 Fuji Hvy Ind 4390 -2.00 5223 3669 2.29 10.84 29275.36 TeliaSonera 38.21 -0.28 55.85 37.76 7.58 11.83 19264.33 BerkshHat 190000-2250.00 227450187655.08 - 14.52 154114.51 Medtronic 73.92 -0.87 79.50 55.54 1.72 45.67 103943.03
Belgium (€) Danone 58.68 -0.28 67.74 51.73 2.38 41.66 41797.21 Hitachi 600.40 -4.20 922.90 582.40 1.85 12.74 24720.07 Volvo 73.15 - 120.50 72.25 3.96 16.19 13822.81 Biogen 273.33 -7.24 480.18 254.00 - 18.90 60926.11 Merck 51.14 -0.66 63.30 45.69 3.32 14.36 142861.8
AnBshInBv 107.45 0.95 124.20 87.73 2.69 22.30 187934.34 EDF 11.45 -0.42 24.89 11.29 10.15 6.48 23910.38 HondaMtr 3410 -83.00 4499 3383 2.38 12.14 52616.98 Switzerland (SFr) BkNYMeln 35.78 -1.29 45.45 35.34 1.80 16.39 39105.84 Metlife 43.08 -0.42 58.23 40.97 3.18 8.84 47888.87
KBC Grp 50.88 -0.95 66.00 45.07 3.80 8.68 23134.6 Engie SA 13.96 -0.34 20.08 13.80 6.66 40.29 36959.66 JapanTob 4141 61.00 4848 3118 2.28 19.48 70548.14 ABB 16.10 -0.08 22.16 16.05 - 15.73 37023.02 BlackRock 296.58 -13.42 382.84 275.00 2.70 16.14 48636.91 Microsoft 50.99 -2.12 56.85 39.72 2.30 35.99 407303.69
Esslr Intl 109.45 1.70 125.15 93.87 0.87 41.10 25765.26 KDDI 2822.5 -13.50 8550 2519 1.96 16.00 64696.44 CredSuisse 18.40 -0.31 28.94 18.31 3.63 8.90 35779.64 Boeing 125.63 -3.57 158.83 115.14 2.60 16.71 84170.04 Mnstr Bvrg 141.13 -1.29 160.50 114.70 - 51.79 28610.22
Brazil (R$)
Hermes Intl 293.95 -2.40 365.55 277.55 0.93 35.75 33748.92 Keyence 56900 -670.00 70100 50700 0.33 30.28 29469.99 Nestle 70.05 -0.05 77.00 64.55 3.07 15.88 221882.99 BrisMySq♦ 62.78 -0.73 70.87 51.82 2.23 62.78 104735.01 MondelezInt 40.31 -1.05 48.58 33.97 1.45 8.33 64059.34
Ambev 16.39 -0.20 20.46 15.99 9.60 21.26 63899.65
LOreal 146.30 0.50 181.30 140.40 1.72 29.99 89055.23 MitsbCp 1858.5 -13.50 2837 1814.5 2.73 10.82 25172.78 Novartis 80.40 0.05 103.20 79.70 3.22 24.26 213819.03 Broadcom 52.94 -1.06 58.51 40.21 0.96 24.36 29699.34 Monsanto♦ 90.87 -1.28 126.00 81.22 2.10 25.18 40015.1
Bradesco 18.39 0.02 32.40 18.19 5.07 6.71 11515.09
LVMH 136.75 -0.65 176.60 130.75 2.18 12.98 75576.96 MitsubEst 2258.5 -45.50 2975 2231 0.61 44.54 26749.11 Richemont 62.80 -0.30 87.55 62.25 2.47 20.88 32566.66 CapOne 62.85 -1.75 92.10 61.84 2.10 9.36 33439.04 MorganStly 25.97 -1.18 41.04 25.51 1.82 16.91 50283.74
Cielo 32.52 -0.24 46.27 30.83 2.02 16.23 15218.84
Nmrcble-SFR 34.51 -0.84 60.01 32.19 - -43.88 16447.9 MitsubishiEle 1094.5 -8.00 1718 1062 2.28 11.07 20018.85 Roche 256.40 -0.10 283.90 238.80 3.05 25.27 178955.97 CardinalHlth 81.24 -0.54 91.91 74.76 1.70 21.53 26726.42 MylanNV 49.71 -0.99 76.69 37.59 - 29.37 24444.74
ItauHldFin 22.50 -0.10 32.66 22.40 2.18 5.26 17005.68
Orange 15.12 -0.25 16.98 12.21 3.69 42.79 43557.53 MitsuiFud 2687.5 -100.50 3879 2667.5 0.96 23.91 22696.49 Swiss Re 92.45 -0.15 99.75 76.55 4.64 37.99 34047.14 Carnival 49.83 -2.11 55.77 42.51 1.96 29.76 29405.21 Netflix 104.04 -3.02 133.27 46.38 - 294.24 44465.48
Petrobras 6.50 -0.21 16.26 6.42 - -2.55 11999.47
PernodRic 96.51 -0.58 117.75 88.00 1.58 32.04 27858.44 MitUFJFin 659.40 -12.60 936.80 605.80 2.52 6.49 79585.46 Swisscom 475.00 -3.20 580.50 471.10 4.50 17.94 24444.59 Caterpillar♦ 59.87 -1.63 89.62 58.75 4.53 13.09 34858.34 NextEraE 105.26 -0.43 112.64 93.74 2.72 15.99 48476.01
Vale 9.35 -0.02 27.89 8.80 24.96 -4.10 7461.43
Renault 74.17 -0.96 100.25 59.59 2.38 8.62 23853.96 Mizuho Fin 216.80 -5.60 280.40 191.00 3.30 7.27 45937.82 Syngent 374.10 -2.20 435.20 280.00 2.86 26.02 34542.98 CBS 45.88 -0.85 63.95 38.51 1.24 15.68 19898.28 Nike 57.56 -0.95 68.20 45.35 1.19 29.43 77700.05
Canada (C$) Murata Mfg 14080 -280.00 22220 12520 1.31 15.04 27017.43 Celgene 103.06 -2.56 140.72 92.98 - 54.68 81473.07 NorfolkS 71.77 -0.38 112.05 70.09 3.08 13.73 21428.35
Safran 55.29 -0.09 72.45 54.33 2.02 -18.05 25076.2 UBS 16.75 0.04 22.57 13.58 4.35 10.67 64056.11
BCE 54.06 -0.73 60.20 51.56 4.85 17.40 32227.07 NipponTT 4744 -47.00 5066 3245.5 1.85 18.13 84716.52 CharlesSch 27.02 -1.10 35.72 25.43 0.84 28.82 35572.46 Northrop 184.21 -1.34 193.99 151.27 1.54 18.81 33596.78
Sanofi 72.27 0.77 101.10 70.94 3.67 21.22 102623.93 Zurich Fin 242.30 -0.50 334.60 232.60 - 12.47 36203.78
BkMontrl 71.11 0.26 80.76 64.01 4.67 10.55 31476.27 Nissan Mt 1099.5 -6.50 1350 990.80 3.15 9.14 42340.2 ChevrnTx 83.67 -1.80 112.93 69.58 4.83 19.23 157470.01 NXP 68.65 -5.86 114.00 66.93 - 25.10 17282.74
Sant Gbn 35.63 0.17 44.84 32.54 1.62 25.70 21733.13 Taiwan (NT$)
BkNvaS♦ 52.56 0.29 67.72 52.07 5.27 9.16 43560.88 Nomura 602.30 -9.70 909.20 587.20 3.53 9.16 19611.81 Cigna 136.23 -2.49 170.68 105.23 0.03 17.67 35096.65 Occid Pet 62.79 -1.21 83.74 58.82 4.42 -8.41 47954.98
Schneider 46.21 -0.18 75.29 45.99 3.86 17.19 29526.98 Chunghwa Telecom 100.00 -1.00 103.00 93.10 4.67 20.32 23077.01
Brookfield 40.26 -0.09 48.64 39.56 1.56 10.52 27207.59 Nppn Stl 2099.5 -47.50 3505 2066 2.86 9.34 16995.61 Cisco♦ 23.62 -1.04 30.31 23.03 3.22 13.66 120158.55 Oracle♦ 34.12 -0.67 45.33 33.66 1.59 17.25 143345.63
SocGen 34.91 -1.08 48.77 33.42 3.32 9.93 30605.54 HonHaiPrc 74.90 -0.40 99.70 73.10 4.65 8.12 34844.3
CanadPcR♦ 151.85 0.21 245.05 147.76 0.94 16.57 15988.25 NTTDCMo 2398 -18.50 2873.5 1913.5 2.70 21.69 83459.08 Citigroup 42.47 -2.91 60.95 41.85 0.27 10.13 126517.72 Pepsico 93.93 -1.88 103.44 76.48 2.73 29.49 136841.99
Total 38.08 0.43 50.30 36.85 6.31 107.92 101568.78 MediaTek 210.00 5.00 505.00 195.50 10.08 10.69 9817.87
CanImp♦ 84.69 -0.20 102.90 83.10 5.21 9.30 23176.99 Panasonic 1086.5 -4.00 1853.5 1044.5 1.39 83.19 22703.21 CME Grp 84.71 0.01 100.87 82.33 2.20 23.99 28651.74 Perrigo 145.01 -0.40 215.73 138.74 0.31 152.05 21229.76
UnibailR 219.60 -1.55 262.00 212.30 4.13 13.41 23558.13 TaiwanSem 137.00 - 155.00 112.50 3.16 12.14 105679.27
CanNatRs 23.85 -0.59 42.46 23.42 3.91 59.42 17980.62 Seven & I 5080 -3.00 5998 4127.5 1.33 29.07 38358.75 Coca-Cola 41.50 -0.38 43.91 36.56 2.95 28.19 180482.88 Pfizer 30.81 -0.30 36.46 28.47 3.37 24.51 189717.81
Vinci 57.34 -0.06 62.60 46.39 2.87 17.60 36695.92
CanNatRy 72.43 0.01 88.89 69.90 1.67 16.71 39349.2 ShnEtsuCh 6126 -18.00 8310 5801 1.58 20.52 22548.54 Thailand (THB) Cognizant 58.71 -1.50 69.80 53.33 - 24.39 35785.46 Phillips66 78.47 -0.81 94.12 59.00 2.55 9.70 41859.06
Vivendi 18.66 -0.14 24.83 18.49 10.37-224.01 27768.25
Enbridge 43.52 -0.52 66.14 40.17 4.09-109.99 26009.86 Softbank 5111 -437.00 7827 5095 0.72 11.78 52272.89 PTT Explor 198.00 -8.00 382.00 197.00 5.24 -63.05 15573.17 ColgtPlm 63.35 -0.18 71.56 50.84 2.21 24.81 56820.01 PhilMorris 86.29 -1.59 90.27 75.27 4.40 19.63 133688.73
GtWesLif 32.37 -0.85 37.70 30.42 4.05 11.58 22149.73 Germany (€)
Sony 2622.5 40.00 3970 2397.5 0.79 34.20 28198.67 United Arab Emirates (Dhs) Comcast♦ 53.89 -1.16 64.99 50.01 1.71 17.89 112873.1 PNCFin♦ 86.33 -0.54 100.52 82.60 2.17 12.30 44712.06
ImpOil 39.99 -1.69 55.37 39.30 1.21 19.72 23348.82 Allianz 148.10 -1.15 170.15 131.05 4.47 10.84 73607.07
SumitomoF 4105 -67.00 5770 3902 3.49 11.63 49445.88 Emirtestele 15.55 -0.25 16.50 9.95 3.90 17.87 33478.23 ConocPhil 39.36 -1.89 70.11 38.36 7.03 -50.84 48595.51 PPG Inds 91.90 -1.67 118.95 82.93 1.43 22.75 24745.84
Manulife 17.99 -0.05 24.20 17.84 3.69 13.95 24436.62 BASF 60.79 -1.02 97.22 60.61 4.45 11.40 60722.48
Takeda Ph 5545 -43.00 6657 5086 3.00 -30.84 37323.68 United Kingdom (p) Corning 16.87 -0.43 25.16 15.42 2.58 11.67 19956.95 Praxair 97.39 -2.40 130.38 96.51 2.71 21.01 27741.1
Potash♦ 22.94 -0.76 47.10 21.50 8.71 9.51 13195.58 Bayer 101.05 0.45 146.45 99.60 2.15 23.20 90878.82
TokioMarine 4057 -23.00 5504 3771 2.45 17.50 26178.94 AscBrFd 3002 16.00 3606 2705.75 1.13 42.07 33922.44 Costco 150.39 -2.79 169.73 117.03 0.98 29.65 66138.1 Prec Cast 232.11 -0.11 232.96 186.17 0.05 25.81 31933.96
RylBkC 67.35 0.30 81.53 66.51 4.69 9.78 68896.86 BMW 78.10 0.08 123.75 72.05 3.59 9.42 51131.95
Toyota 6742 -17.00 8783 6556 3.08 10.01 191701.33 AstraZen 4210.5 -19.50 4931.68 3746 4.41 47.56 75957.51 CrownCstl 79.12 -4.84 89.44 75.78 3.92 54.63 26407.99 Priceline 1086.74 -34.64 1476.52 990.69 - 24.03 54102.14
Suncor En 29.75 -1.47 40.93 29.70 2.88 439.74 29623.76 Continental 192.90 1.40 234.25 171.30 1.63 14.99 41958.84
Mexico (Mex$) Aviva 463.10 -1.40 578.68 428.40 3.91 12.12 26760.48 CSX 22.76 -0.50 37.67 21.75 2.82 11.98 22189.74 ProctGmbl 74.98 -1.17 91.79 65.02 3.29 26.52 203988.54
ThmReut 51.04 -0.06 55.92 46.49 3.58 14.82 26882.22 Daimler 64.92 0.39 96.07 62.06 3.65 9.30 75534.36
AmerMvl 11.25 -0.12 17.37 10.87 2.25 20.25 25908.23 Barclays 187.65 -4.15 289.90 185.85 3.46 0.63 44999.76 CVS 93.90 -1.61 113.65 81.37 1.33 22.34 103977.08 Prudntl 70.17 -1.90 92.60 68.64 3.12 9.69 31506.33
TntoDom 49.70 0.25 56.48 47.75 4.13 11.50 63548.06 Deut Bank 18.55 -0.63 33.42 18.45 3.91 -6.29 27825.47
FEMSA UBD 155.74 -1.03 169.74 123.10 0.72 29.92 30543.02 BG 928.60 -6.40 1301.62 795.53 2.05 -17.93 45302.37 Danaher♦ 85.19 -2.12 97.62 81.25 0.56 25.06 58379.46 PublStor 248.55 -1.18 254.66 182.08 2.36 44.12 42973.27
TrnCan♦ 42.29 -0.53 59.50 40.58 4.92 17.58 20654.24 Deut Tlkm 15.26 -0.13 17.63 13.39 3.17 32.55 76426.84
WalMrtMex 43.37 -0.83 47.00 28.32 1.26 32.73 41507.7 BP 340.50 2.35 499.25 252.55 7.90 -12.44 89266.83 Deere♦ 73.12 -0.48 98.23 71.85 3.04 13.68 23157.11 Qualcomm 45.82 -1.91 74.09 45.13 3.71 15.06 68871.77
ValeantPh 127.82 -1.08 347.84 92.65 - 53.41 30041.35 DeutsPost 22.69 -0.03 31.19 22.52 - 19.62 29887.63
BrAmTob 3612 17.00 3931.5 3231.5 4.10 16.77 96111.3 Delphi 67.47 -1.95 90.57 65.76 1.40 15.04 18897.55 Raytheon♦ 120.29 -1.24 129.99 95.32 2.05 18.81 36219.08
E.ON 8.20 0.01 14.85 7.08 1.65 -1.83 17849.06 Netherlands (€)
China (HK$) BSkyB 1032 -15.00 1180 899.50 3.13 13.20 25321.52 Delta 44.50 -0.84 52.77 34.61 0.86 13.57 34998.08 Regen Pharm 462.95 -16.13 605.93 393.00 - 96.88 47290.92
Fresenius Med 71.72 -0.39 83.17 62.11 1.03 24.06 24265.79 Altice 12.71 -0.20 47.73 9.98 - 235.13 11346.9
AgricBkCh 2.75 -0.06 4.55 2.75 7.77 4.32 10837.59 BT♦ 459.40 -3.90 502.60 399.83 2.48 17.31 54859.68 DiscFinServ 49.16 -1.00 61.50 48.19 2.00 10.73 21015.1 ReynoldsAm 46.66 -0.74 49.56 33.47 2.76 18.61 66681.87
Fresenius SE 58.14 -0.22 70.00 46.20 0.73 26.19 34456.63 ASML Hld 72.47 0.72 104.85 70.25 0.93 23.24 34152.91
Bk China 2.99 -0.05 5.68 2.97 7.46 4.61 32055.76 Compass 1143 22.00 1223.36 963.00 2.41 21.90 26828.29 Disney 93.90 -5.21 122.08 90.00 1.82 20.27 155233.4 Salesforce 70.86 -2.21 82.90 54.95 - -570.19 47051.04
HenkelKgaA 77.63 -2.98 99.44 75.76 1.61 19.66 21933.61 Heineken 74.95 0.19 85.90 61.23 1.36 22.88 46950.95
BkofComm 4.68 -0.08 8.61 4.67 6.77 4.50 21007.12 Diageo 1779.5 -11.50 2055 1592.5 3.01 18.81 63889.87 DominRes 68.88 -0.79 79.89 64.54 3.49 24.15 41006.58 Schlmbrg 63.01 -1.67 95.13 61.71 2.85 25.21 79462.14
Linde 119.90 -0.85 195.55 119.50 2.54 20.20 24219.04 ING 10.80 -0.22 16.00 10.58 - 24.65 45431.47
BOE Tech 1.88 0.03 4.78 1.17 1.94 27.86 47.95 GlaxoSmh 1365.5 2.00 1645 1227.5 5.86 6.76 94914.38 DowChem♦ 42.96 -1.28 57.10 35.11 3.69 12.26 49752.06 Shrwin-Will 242.10 -1.14 294.35 218.27 1.00 24.56 22539.63
MuenchRkv 172.00 -1.30 206.50 156.00 4.36 9.58 31209.53 Unilever 37.48 0.42 42.84 32.86 2.87 23.80 69894.5
Ch Coms Cons 6.37 0.10 17.00 6.17 3.12 6.42 3615.81 Glencore 75.15 1.65 318.46 66.67 15.23-174.77 15440.52 DukeEner 72.08 -0.29 89.97 65.50 4.21 22.17 49615.14 SimonProp 184.17 -1.49 208.14 170.99 2.95 36.46 56985.53
SAP 71.22 0.54 75.75 53.91 1.49 28.53 95153.97 Norway (Kr)
Ch Evrbrght 3.48 -0.06 5.65 3.22 6.28 4.78 3064.56 HSBC 479.70 -6.00 674.57 477.05 6.99 9.46 134762.67 DuPont 54.09 -3.31 76.61 47.11 3.16 16.44 47404.85 SouthCpr 22.71 -0.16 33.31 21.95 1.75 18.87 17835.89
Siemens 81.33 -0.37 106.35 77.91 3.77 12.64 77924.66 DNB 93.65 -2.75 143.00 92.75 4.16 6.72 17143.81
Ch Rail Cons 7.49 -0.10 17.70 7.34 2.35 6.82 1993.78 ImpTob 3568 53.50 3665 2823 3.70 20.17 48825.02 Eaton 47.86 -0.46 73.82 46.98 4.22 11.73 22149.61 Starbucks 58.00 -0.98 64.00 39.50 1.04 33.70 86118.4
Volkswgn 118.45 -1.90 254.50 95.00 3.92 9.73 38013.47 Statoil 102.70 -0.70 161.70 100.40 6.89 -8.93 36805.18
Ch Rail Gp 4.77 0.04 12.30 4.59 1.92 8.35 2572.99 LlydsBkg 63.96 -0.75 89.35 62.33 2.35 38.14 65233.1 eBay 25.26 -0.60 29.83 22.11 - 10.80 30328.52 StateSt♦ 54.97 -2.47 81.26 53.77 2.20 13.62 22179.63
ChConstBk 4.65 -0.08 7.98 4.63 7.60 4.37 143327.19 Hong Kong (HK$) Telenor 134.00 -1.00 186.10 132.30 2.79 33.33 22612.57 Ecolab 102.58 -2.24 122.48 100.52 1.22 29.11 30292.23 Stryker♦ 91.11 0.19 105.34 86.68 1.43 31.31 34213.83
Natl Grid 926.00 -8.60 968.57 806.40 4.63 16.14 49526.75
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36586.73 AIA 41.35 -1.10 58.20 38.85 0.99 20.25 63872.15 Qatar (QR) EMC♦ 25.01 0.34 29.24 22.66 1.74 22.19 48490.32 Sychrony Fin 27.64 -0.54 36.40 26.28 - 11.12 23046.95
Prudential 1346.5 9.50 1761.5 1045.99 2.74 13.71 49424.8
ChinaCitic 4.35 -0.07 7.40 4.34 - 4.27 8299.78 BOC Hold 20.75 -0.95 33.70 20.70 4.93 9.28 28126.45 QatarNtBk 149.50 -2.50 208.50 148.10 4.86 9.59 28729.02 Emerson 43.09 -0.74 62.75 42.17 4.12 11.39 28204.87 Target 70.08 -0.33 85.81 68.15 2.80 16.93 43172.9
RBS 260.20 -4.30 414.00 257.80 - -11.67 43173.16
ChinaLife 20.20 -0.15 41.00 20.05 2.29 12.76 19270.86 Ch OSLnd&Inv 22.00 -0.10 34.05 20.70 2.28 6.64 27812.06 EOG Res♦ 62.97 -2.29 101.36 61.01 1.01 -9.58 34616.72 TE Connect 55.08 -2.36 73.73 54.32 2.13 19.37 20610.78
Russia (RUB) ReckittB 6005 -3.00 6450 5335 2.31 25.51 60651.65
ChinaMBank 14.92 -0.36 26.85 14.90 5.27 5.56 8781.61 ChngKng 44.60 -0.30 77.55 44.00 - 10.29 22069.61 EquityResTP 78.58 0.01 82.53 61.90 2.59 36.07 28623.7 Telsa Mtrs 204.99 -1.19 286.65 181.40 - -40.71 26843.71
Gzprm neft 124.60 -0.50 166.94 122.75 6.57 9.11 37278.68 RELX 1144 -15.00 1232 988.50 2.27 26.27 33562.05
ChinaMob 80.10 -0.35 118.00 79.00 3.31 13.20 210268.88 Citic Ltd 11.38 0.04 16.40 11.10 1.72 5.88 42442.11 Exelon 27.46 -0.45 38.25 25.09 4.27 12.92 25251.24 TexasInstr 48.03 -2.00 59.99 43.49 2.67 18.00 48722.21
Lukoil 2112.1 14.10 3297.7 2040.1 9.36 16.45 22703.91 RioTinto 1632.5 -11.00 3280 1611.5 8.36 16.24 32017.26
ChinaPcIns 25.85 -0.40 47.10 24.80 2.21 13.24 9197.68 Citic Secs 14.56 -0.10 40.50 12.82 2.27 6.81 5447.58 ExpScripts 74.59 -2.92 94.61 68.06 - 24.51 50443.43 TheTrvelers 105.10 -1.88 116.48 95.21 2.09 9.88 31973.4
MmcNrlskNckl 8290 240.00 12247 7840 18.42 9.04 16579.26 RollsRoyce 538.50 -5.50 1061 504.50 4.29 -39.60 14132.53
ChMinsheng 6.67 -0.09 11.88 6.61 3.25 4.51 5929.11 CK Hutchison 96.70 -0.85 174.90 96.45 3.45 4.17 47850.45 ExxonMb 77.58 -1.54 93.45 66.55 3.46 17.34 322960.77 ThrmoFshr 132.76 -3.03 143.65 117.10 0.43 28.58 52984.21
Novatek 559.50 15.80 646.30 410.80 11.90 44.86 21469.66 RylDShlA 1338.5 -12.50 2216.5 1326 9.38 80.91 76246.76
ChMrchSecs RMB 16.50 0.01 40.00 13.85 2.47 9.71 12045.55 CNOOC 6.74 -0.32 13.78 6.70 7.69 6.39 38580.31 Facebook 94.97 -3.40 110.65 72.00 - 101.50 214607.18 TimeWrnr 69.65 -0.90 91.34 62.94 1.85 16.94 56805.25
Rosneft 232.00 -0.10 294.20 214.80 4.02 5.50 31074.07 SABMill 4123 41.00 4132 2773 1.80 34.15 95349.09
Chna Utd Coms RMB 4.72 - 10.74 4.27 1.39 32.89 15206.44 HangSeng 130.00 -2.30 162.10 129.40 3.93 10.19 31864.24 Fedex 126.92 -4.78 185.19 124.84 0.67 34.07 34981.09 TimeWrnrC♦ 177.03 -4.93 194.22 134.21 2.00 27.97 50134.46
Sberbank 86.15 -1.12 110.70 57.20 0.59 8.17 23503.22 Shire 4250 71.00 5870 3855 0.35 12.54 35936.43
ChShenEgy 10.66 -0.32 22.50 10.64 8.03 7.73 4644.77 HK Exc&Clr 172.50 -2.90 311.40 172.10 2.11 32.35 26727.41 FordMtr 11.97 -0.22 16.74 10.44 4.54 10.63 46656.4 TJX Cos 67.51 -0.96 76.93 63.53 1.06 22.20 45199.91
Surgutneftegas 33.68 1.22 39.80 25.79 - 1.12 15206.77 StandCh 489.10 -7.20 1166 475.55 10.48 11.43 22885.35
ChShpbldng RMB 7.91 0.05 20.19 7.51 0.47-495.47 21590.01 MTR 36.65 0.05 40.00 33.05 2.62 14.74 27526.35 Franklin 32.61 -0.76 54.85 31.97 1.74 10.49 19586.64 T-MobileUS 37.79 -1.60 43.43 28.54 - 66.23 30838.05
Saudi Arabia (SR) Tesco 161.55 -2.90 252.52 137.00 0.72 -2.32 18772.31
ChStConEng RMB 5.33 -0.05 12.52 4.88 3.15 7.00 24222.37 SandsCh 22.50 0.85 40.55 21.60 8.07 13.42 23276.95 GenDyn♦ 125.99 -3.05 153.76 124.57 2.48 15.03 39828.99 UnionPac 74.11 -1.31 124.52 72.42 2.74 13.55 63298.88
AlRajhiBnk 46.97 -0.56 69.00 45.00 3.75 12.64 20352.59 Vodafone♦ 213.45 -2.80 258.00 201.25 5.26 -39.97 80902.47
ChUncHK 8.36 -0.15 16.00 8.24 2.81 18.60 25666.48 SHK Props 84.35 -2.95 137.60 83.55 2.60 8.41 31289.57 GenElectric♦ 28.49 -0.57 31.49 19.37 3.05 58.47 288012.22 UPS B 90.04 -1.11 114.40 88.42 3.00 21.88 62680.68
Natnlcombnk 39.98 0.28 72.75 37.80 1.89 9.62 21264.31 WPP 1420 -15.00 1616 1273 2.69 14.68 26242.36
CNNC Intl RMB 7.85 -0.02 14.38 4.07 - 22.64 4642.51 Tencent 136.00 -1.00 171.00 122.20 0.25 39.74 163966.91 GenMills♦ 54.74 -0.61 59.87 47.43 3.00 23.79 32479.72 USBancorp 39.05 -0.88 46.26 37.97 2.42 13.10 68305.36
SaudiBasic 63.20 -1.60 110.50 60.00 7.66 8.52 50557.29 United States of America ($)
CSR 7.37 0.19 20.70 7.00 - 17.16 4130.13 India (Rs) GenMotors 29.57 -0.73 39.00 24.62 4.22 11.49 46016.15 UtdHlthcre 109.27 -1.49 126.21 95.00 1.51 18.36 104146.16
SaudiTelec 61.06 3.23 73.25 52.75 6.17 13.25 32563.6 21stC Fox A 26.10 -0.46 35.85 22.81 1.09 7.19 30556.63
Daqin RMB 7.35 - 15.15 7.28 6.37 7.93 16608.29 Bhartiartl 300.25 -5.85 452.45 295.10 0.72 21.41 17732.43 GileadSci 91.84 -1.18 123.37 86.00 0.88 8.93 132357.99 UtdTech 85.63 -3.38 124.45 85.47 2.77 14.24 75955.6
Singapore (S$) 3M 138.69 -2.49 170.50 134.00 2.68 19.00 85393.23
Gree Elec Apl 0.21 -0.01 0.45 0.13 - -2.37 352.90 HDFC Bk 1025.85 -16.30 1128 944.20 0.76 24.30 38270.82 GoldmSchs 155.61 -5.78 218.77 153.81 1.52 10.82 66373.29 ValeroEngy 66.41 -0.91 73.88 44.60 2.10 7.81 31976.64
DBS 14.23 -0.41 21.50 14.06 4.02 11.30 24722.48 AbbottLb♦ 40.54 -0.56 51.74 39.00 2.19 25.50 60474.32
GuosenSec RMB 16.22 -0.02 34.94 13.76 1.20 10.08 5411.5 Hind Unilevr 809.95 5.70 981.00 769.00 1.73 38.63 25893.87 Halliburton 30.85 -0.99 50.20 29.64 2.20 106.11 26401.84 Verizon♦ 44.43 -0.44 50.86 38.06 4.71 18.86 180780.03
JardnMt US$ 51.50 -1.40 67.88 45.00 2.56 13.20 36171.26 Abbvie♦ 57.34 2.78 71.60 45.45 3.18 35.11 93736.39
HaitongSecs 10.88 -0.04 27.90 10.00 2.70 7.03 4755.94 HsngDevFin 1131.8 -18.00 1402.3 1093.2 1.29 20.31 26398.91 HCA Hold 64.27 -0.85 95.49 43.91 - 14.23 26200.8 VertexPharm 97.91 -4.00 143.45 94.68 - -37.78 24058.18
JardnStr US$ 27.00 0.31 36.93 25.24 0.91 10.55 30052.32 Accenture 99.27 -2.61 109.86 83.47 2.03 23.21 80033.79
Hngzh HikVDT RMB 28.26 -0.03 56.48 25.90 1.38 20.62 13554.68 ICICI Bk 223.10 -1.35 393.40 217.80 2.16 10.69 19157.96 Hew-Pack 10.11 -0.51 18.27 9.99 6.16 4.40 18115.59 VF Cp 54.98 -0.57 77.83 53.87 2.20 24.25 23438.47
OCBC 7.78 -0.17 10.92 7.75 4.41 9.06 22238.44 Ace♦ 111.02 0.96 119.86 96.00 2.26 14.27 35990.63
Hunng Pwr 6.26 -0.04 11.90 6.20 7.09 6.20 3772.39 Infosys 1131.9 -8.00 2336 932.65 3.57 19.57 38222.55 HiltonWwde 17.75 -0.65 31.60 17.32 0.37 24.83 17527.27 Viacom 39.85 -1.58 73.52 36.32 3.46 8.92 13834.59
SingTel 3.53 -0.03 4.57 3.40 4.73 15.23 39104.33 Adobe 89.17 -0.63 96.42 69.04 - 98.25 44477.94
IM Baotou Stl RMB 3.14 0.01 7.50 3.08 - -41.18 7512.88 ITC 315.40 1.50 409.95 294.00 1.98 25.27 37449.53 HomeDep 119.23 -0.39 135.47 92.17 1.74 24.12 151169.48 Visa Inc 71.83 -1.97 81.01 60.00 0.63 29.52 139812.96
UOB 17.10 -0.50 25.05 17.10 4.74 9.08 19096.51 AEP 58.69 -0.45 65.38 52.29 3.41 17.24 28806.07
In&CmBkCh 3.98 -0.07 7.10 3.98 7.54 4.46 44287.53 L&T 1083.55 -24.35 1893.8 1074.1 1.37 20.31 14907.56 Honywell 97.26 -1.48 107.41 87.00 2.01 18.04 74957.45 Walgreen 79.93 -1.94 97.30 73.00 1.66 20.45 86224.24
Aetna♦ 105.04 -3.21 134.40 90.20 0.88 17.05 36627.45
IndstrlBk RMB 15.30 -0.13 21.42 11.90 3.63 5.99 44305.83 OilNatGas 214.40 -5.05 373.80 211.25 4.49 9.62 27100.46 South Africa (R) HumanaInc♦ 162.16 -5.07 219.79 143.44 0.66 19.75 24035.99 WalMartSto 61.93 -1.13 89.26 56.30 2.92 14.33 198293.25
Aflac 56.61 -0.71 66.53 51.41 2.60 10.49 24157.68
Kweichow RMB 199.43 0.43 290.00 166.20 2.14 15.98 38077.55 RelianceIn 1016.85 -56.45 1089.75 796.45 0.96 12.55 48663.54 Firstrand 39.00 - 58.47 34.08 6.10 7.87 13057.37 IBM 130.03 -2.88 176.30 128.87 3.49 9.44 126143.42 WellsFargo 48.82 -1.82 58.77 47.75 2.81 12.50 250610.6
AirProd♦ 117.82 -0.56 158.20 114.86 2.57 21.21 25389.03
Midea 1.83 - 2.68 1.65 4.99 12.61 50.45 SBI NewA 181.00 -3.30 336.00 179.15 1.88 7.70 20758.83 MTN Grp 120.50 2.71 250.00 113.29 12.94 5.77 13272.97 IllinoisTool 81.25 -1.58 100.14 78.79 2.33 16.93 29533.71 Williams Cos 16.10 -2.19 61.38 12.77 13.96 38.06 12071.21
Alexion 158.68 -8.61 208.88 142.02 - 152.15 35754.46
New Ch Life Ins 27.00 0.05 56.55 26.20 0.90 7.86 3579.62 SunPhrmInds 784.95 -2.15 1200.8 704.00 - 68.08 27909.65 Naspers N 1812 -7.00 2270 1521.98 0.30 49.87 47356.35 Illumina 171.15 -3.96 242.37 130.00 - 52.89 25056.36 Yahoo 29.14 -1.18 50.32 27.20 - 120.78 27518.51
Allegran 295.24 -3.88 340.34 237.50 - -42.41 116361.33
PetroChina 4.29 -0.09 11.04 4.24 4.31 15.75 11604.4 Tata Cons 2277.65 16.55 2812.1 2250 1.74 20.96 66306.36 South Korea (KRW) Intcntl Exch 245.45 -4.62 266.74 202.24 0.83 24.58 26941.74 Yum!Brnds♦ 67.09 -2.92 95.90 66.35 2.31 33.95 28932
Allstate 58.13 -0.29 72.87 54.12 1.92 10.72 22514.11
PingAnIns 34.70 -0.40 62.90 34.30 2.29 9.63 33132.41 Indonesia (Rp) HyundMobis 242000-3000.00 262500 185500 1.19 12.69 19453.5 Intel 29.76 -2.98 37.03 24.87 3.00 13.49 140437.44 Venezuela ()
Alphabet 710.49 -20.90 798.69 503.09 - 34.70 206985.48
PngAnBnk RMB 10.41 -0.05 17.50 9.30 1.63 6.78 18676.85 Bk Cent Asia 12975 -25.00 15600 11000 1.02 20.21 22960.72 KoreaElePwr 50600 -400.00 54000 39100 0.95 2.76 26824.71 Intuit♦ 91.49 -2.83 109.21 79.63 1.06 60.25 24153.76 Bco de Vnzla 100.00 - 143.95 27.00 - - 27015.81
Altria 57.20 -1.02 61.74 47.31 3.51 22.78 112150.86
Pwr Cons Corp RMB 6.45 -0.05 20.00 6.31 1.51 13.01 3235.16 SK Hynix 26700 -100.00 51700 25800 1.08 4.38 15578.42 John&John 97.00 -1.89 105.49 81.79 2.82 19.70 268393.53 Bco Provncl 4149.99 -48.00 4400 850.00 0.79 59.52 33146.89
Israel (ILS) Amazon 570.18 -22.82 696.44 285.25 - 870.89 267278.72
SaicMtr RMB 19.49 -0.21 29.18 14.00 6.50 7.65 32661.26 SmsungEl 1126000-6000.00 1510000 1033000 1.75 8.57 118167.61 JohnsonCn 34.71 -0.50 54.52 33.62 2.83 16.86 22488.9 Mrcntl Srvcs 5000 - 5900 1310 0.15 39.15 22000.5
TevaPha 246.50 0.50 275.90 214.70 1.99 31.93 63517.41 AmerAir 38.76 -1.79 56.20 34.10 0.97 5.89 24431.42
ShenwanHong 0.14 0.00 0.41 0.13 - -2.16 43.22 Spain (€) JPMrgnCh♦ 57.04 -1.16 70.61 50.07 2.78 10.29 209971.64
Italy (€) AmerExpr♦ 62.91 -0.38 87.72 61.50 1.65 11.85 61918.91
ShgPdgBk RMB 17.68 0.10 20.12 11.91 4.18 6.85 50125.98 Kimb-Clark 125.36 -1.85 130.05 103.04 2.62 79.90 45504.98 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.60 -0.07 4.50 3.51 3.76 62.11 36856.65 BBVA 5.81 -0.09 9.77 5.80 2.66 15.28 40256.52 AmerIntGrp 56.09 -1.21 64.93 48.68 1.10 17.22 69384.03
Sinopec Corp 4.02 -0.01 7.79 3.93 5.80 19.72 13149.37 KinderM 13.00 -0.98 44.71 12.75 13.52 25.65 29009.69 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 12.41 -0.14 17.66 12.31 7.48 -16.84 49048.67 BcoSantdr 3.95 -0.05 7.17 3.89 12.15 7.85 61976.51 AmerTower 88.39 -3.82 104.12 86.83 1.82 69.85 37439.37
Sinopec Oil RMB 6.11 0.03 14.23 5.10 - -180.73 417.90 Kraft Heinz 69.20 -1.54 81.20 61.42 0.75 -48.03 83971.14 based on intraday trading over a rolling 52 week period.
Generali 15.07 -0.33 19.21 15.01 3.85 12.60 25516.13 CaixaBnk 2.86 0.02 4.53 2.82 2.71 24.92 18089.55 Amgen 151.30 -1.86 181.81 130.09 1.86 19.13 114129.81
Denmark (kr) Iberdrola 6.13 -0.03 6.71 5.50 2.45 16.25 42238.91 Kroger 38.49 -0.54 42.75 27.32 0.92 20.45 37517.08 ♦ ex-dividend
IntSPaolo 2.66 -0.14 3.65 2.44 2.54 15.84 45914.26 Anadarko 32.02 -2.98 95.94 31.85 3.19 -2.95 16270.73
DanskeBk 172.10 -3.00 218.00 159.10 3.09 26.29 25295.6 Inditex 28.44 -0.10 35.38 24.25 1.33 33.29 96397.58 L Brands 92.34 -1.86 101.11 75.11 1.85 25.06 26726.37 ■ ex-capital redistribution
Luxottica 56.90 0.35 67.80 47.93 1.22 35.73 29929.17 Anthem 134.99 -3.11 173.59 126.25 1.62 13.68 35230.18
MollerMrsk 7785 20.00 16450 7670 3.61 7.38 12074.09 Repsol 8.44 -0.20 18.75 8.43 10.96 25.55 12847.68 LasVegasSd 38.72 1.27 61.59 35.97 5.98 14.74 30877.31 # price at time of suspension
Unicred 4.16 -0.24 6.61 4.15 2.79 13.47 27009.65 Aon Cp 86.09 -1.30 107.08 85.09 1.21 20.82 23581.5
NovoB 363.30 2.30 415.00 274.30 1.33 29.38 109196.7 Telefonica 9.04 -0.06 14.31 8.98 4.28 15.72 47796.97 LibertyGbl 33.16 -1.63 58.66 32.81 - -22.65 8381.39
Apple 97.13 -2.39 134.54 92.00 1.93 11.16 538536.02
Lilly (E) 81.24 -1.30 92.85 68.31 2.31 38.91 90020.14

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 Naspers N 1812.00 1819.00 -7.00 -0.38 -190270.00 -99.1 -12.34 Jan 18 date Coupon S* M* F* price yield yield yield US Jan 18 date Coupon S* M* F* price yield yield yield US
Tesco 161.55 164.45 -2.90 -1.76 16.10 11.1 12.37 MTN Grp 120.50 117.79 2.71 2.30 -12299.50 -99.0 -10.32 High Yield US$ US$
Shire 4250.00 4179.00 71.00 1.70 325.00 8.3 -3.85 Firstrand 39.00 39.00 0.00 0.00 -3761.00 -99.0 -7.71 CSC Holdings, LLC (Cablevision-U.S.) 02/18 7.88 BB Ba2 BB 93.18 12.03 0.00 6.51 11.17 Halliburton Company 02/27 6.75 A A2 A- 118.27 4.67 0.00 0.08 2.63
Potash 23.70 23.70 0.00 0.00 1.74 7.9 -5.37 Anadarko 32.02 35.00 -2.98 -8.51 -8.54 -21.1 -34.39 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 100.36 6.82 0.00 -0.15 4.78
JardnMt US$ 51.50 52.90 -1.40 -2.65 3.47 7.2 11.88 Williams Cos 16.10 18.29 -2.19 -11.97 -4.21 -20.7 -37.69 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Anheuser-Busch Cos, Inc. 12/27 6.75 A- A2 A 119.88 4.62 0.00 0.57 2.58
Infosys 1131.90 1139.90 -8.00 -0.70 68.60 6.5 2.24 Ch Rail Cons 7.49 7.59 -0.10 -1.32 -1.41 -15.8 -26.28 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.97 4.63 0.00 -0.40 -
ValeantPh 128.90 128.90 0.00 0.00 7.34 6.0 -15.63 Chna Utd Coms 4.72 4.72 0.00 0.00 -0.74 -13.6 -25.20 Emerging US$ E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 115.08 4.89 0.00 0.37 -
Cognizant 58.71 60.21 -1.50 -2.48 2.95 5.3 -2.97 SBI NewA 181.00 184.30 -3.30 -1.79 -27.95 -13.4 -21.61 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 119.90 4.74 0.00 -0.07 -
Phillips66 78.47 79.28 -0.81 -1.02 3.26 4.3 -4.05 LibertyGbl 33.16 34.79 -1.63 -4.69 -5.04 -13.2 -17.10 Brazil 01/18 8.00 BB+ Baa3 BB+ 103.98 5.87 0.00 0.00 5.02
Russia 07/18 11.00 BB+ Ba1 BBB- 117.13 3.81 0.00 0.37 2.96 Euro
ExxonMb 77.58 79.12 -1.54 -1.95 2.89 3.9 -2.33 ExpScripts 74.59 77.51 -2.92 -3.77 -11.15 -13.0 -14.12 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 95.29 3.13 0.00 0.08 1.09
BP 340.50 338.15 2.35 0.69 12.45 3.8 1.44 Sinopec Oil 6.11 6.08 0.03 0.49 -0.91 -13.0 -30.41 Peru 03/19 7.13 BBB+ A3 BBB+ 113.35 2.75 0.00 0.14 1.90
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 102.60 2.98 0.00 0.40 0.94
Stryker 91.11 90.92 0.19 0.21 3.22 3.7 -1.44 Renault 74.17 75.13 -0.96 -1.28 -10.59 -12.5 -19.31 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 108.42 2.37 0.00 0.05 -
Illumina 171.15 175.11 -3.96 -2.26 5.98 3.6 -8.12 KinderM 13.00 13.98 -0.98 -7.01 -1.77 -12.0 -17.93 Brazil 01/21 7.88 BB+ Baa3 BB+ 94.28 6.32 -0.01 -0.47 4.86
Colombia 07/21 4.38 BBB Baa2 BBB 98.77 4.69 0.00 0.30 3.23 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 108.64 2.12 0.00 0.01 -
Syngent 376.30 376.30 0.00 0.00 12.70 3.5 -0.11 CNOOC 6.74 7.06 -0.32 -4.53 -0.89 -11.7 -15.64
Poland 03/22 5.00 A- A2 A- 110.88 3.08 0.00 -0.01 1.62 Yen
WalMrtMex 44.20 44.20 0.00 0.00 1.47 3.4 -0.53 DuPont 54.09 57.40 -3.31 -5.77 -7.08 -11.6 -18.66
Turkey 09/22 6.25 - Baa3 BBB- 108.04 4.88 0.00 0.10 3.43 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Woolworths 23.65 22.66 0.99 4.37 0.78 3.4 0.51 VertexPharm 97.91 101.91 -4.00 -3.93 -12.80 -11.6 -16.52
Perrigo 145.01 145.41 -0.40 -0.28 4.32 3.1 -2.88 IM Baotou Stl 3.14 3.13 0.01 0.32 -0.41 -11.5 -16.49 Turkey 04/26 4.25 - Baa3 BBB- 93.30 5.16 0.00 0.07 3.12 £ Sterling
JardnStr US$ 27.00 26.69 0.31 1.16 0.80 3.1 2.47 Petrobras 6.71 6.71 0.00 0.00 -0.87 -11.5 -25.06 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Abbvie 57.34 54.56 2.78 5.10 1.69 3.0 1.68 Lukoil 2112.10 2098.00 14.10 0.67 -265.90 -11.2 -12.97 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
Metlife 43.08 43.50 -0.42 -0.97 1.05 2.5 -9.44 CSR 7.37 7.18 0.19 2.65 -0.92 -11.1 -23.47 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.64 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ A3 BBB+ 121.63 2.06 0.00 0.00 0.60 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 114.66 3.96 0.00 -0.07 1.92
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jan 18 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 15 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 27.02 3.07 23.95 53.29 10.88 Jan 18 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 25.57 3.07 22.50 56.32 7.04 Tr 2pc '16 100.00 2.00 0.00 284.62 545.16 426.32 101.66 100.00 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.29 0.04 -1.15 -1.15 -0.86 -3.76 VXN 29.13 3.17 25.96 46.72 11.15 Tr 1.75pc '17 101.36 0.40 11.11 8.11 -9.09 -18.37 102.68 101.35 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 298.83 0.26 1.24 1.24 -0.05 0.57 VDAX 30.63 2.83 27.80 30.63 - Tr 5pc '18 109.70 0.42 5.00 -12.50 -28.81 -40.00 113.51 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.49 0.01 0.41 0.41 0.41 0.41 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.95 0.64 4.92 -14.67 -24.71 -28.89 115.07 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.61 0.09 0.15 0.15 -0.18 -0.68 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.75 0.86 3.61 -10.42 -18.87 -18.87 119.04 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.44 0.21 0.50 0.50 -0.03 1.84 Tr 1.5pc '21 101.73 1.14 2.70 -8.06 -14.93 -2.56 142.92 99.91 0.12
Gilts( £) 291.59 0.29 1.65 1.65 0.02 0.80 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.65 1.18 3.51 -7.81 -13.24 -7.09 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 239.69 0.25 0.57 0.57 -1.44 -3.55 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 129.15 1.56 1.96 -4.88 -9.83 2.63 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.75 0.25 1.30 1.30 0.09 0.63 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 125.64 1.84 2.22 -3.66 -7.54 6.36 131.90 119.79 0.31
Jan 18 (Libor: Jan 15) night Day Week Month month month month year Overall ($) 226.35 0.09 0.59 0.59 0.59 0.59 Australia 10/18 3.25 103.58 1.91 -0.03 -0.10 -0.14 0.00 Tr 4.25pc '32 128.34 2.18 1.40 -2.68 -5.63 10.10 136.85 121.93 0.35
US$ Libor 0.36610 0.000 0.245 0.000 0.42550 0.61960 0.84905 1.14510 Overall( £) 291.03 0.28 1.54 1.54 0.04 0.75 04/26 4.25 113.74 2.71 -0.01 -0.09 -0.10 0.00 Tr 4.25pc '36 130.01 2.37 1.72 -2.07 -4.44 11.79 140.37 123.52 0.28
Euro Libor -0.28429 0.000 -0.003 0.000 -0.22357 -0.14714 -0.06500 0.04643 Overall(€) 221.64 0.17 0.43 0.43 -0.03 1.18 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 139.88 2.46 1.23 -2.38 -3.91 12.33 153.16 132.20 0.26
£ Libor 0.48000 0.000 0.000 0.000 0.51069 0.59063 0.74813 1.03063 Treasuries ($) 218.39 0.14 0.73 0.73 0.73 0.73 10/25 1.20 103.87 0.79 -0.01 -0.07 -0.04 0.00 Tr 3.75pc '52 133.03 2.39 1.27 -2.45 -3.63 7.17 145.21 121.95 0.22
Swiss Fr Libor 0.000 -0.78800 -0.75300 -0.68100 -0.60500 FTSE Belgium 06/18 0.75 101.79 0.00 0.00 0.00 0.00 0.00 Tr 4pc '60 145.27 2.35 1.73 -2.49 -3.69 6.33 159.23 131.72 0.22
Yen Libor 0.000 0.04857 0.08229 0.11300 0.22471 Sterling Corporate (£) 110.71 -0.55 - - 0.14 -5.11 06/26 1.00 99.92 1.01 0.00 0.00 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.22100 -0.14200 -0.05400 0.04900 Euro Corporate (€) 105.05 -0.18 - - -0.70 -4.95 Canada 11/17 0.25 99.90 0.31 -0.01 -0.10 -0.19 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.79500 Euro Emerging Mkts (€) 752.71 -5.45 - - -11.51 -23.57 06/26 1.50 102.12 1.28 -0.01 -0.17 -0.23 0.00
US$ CDs
Euro CDs
0.000
0.000
0.42000
-0.22500
0.59000
-0.16500
0.83000
-0.05500
Eurozone Govt Bond 113.87 -0.07 - - -0.12 -1.89 Denmark 11/18 0.25 101.32 -0.22 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 108.95 0.80 0.00 -0.07 -0.03 0.00
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.68 1.14 0.01 -0.09 -0.16 0.00
Fixed Coupon Jan 18 chg % Return 1 month 1 year Yield
Jan 18 term notice month month month year Markit iTraxx 09/25 0.88 100.81 0.79 0.00 -0.06 -0.07 0.00
1 Up to 5 Years 98.74 -0.07 2381.78 0.52 1.41 0.75
Euro -0.35 -0.25 -0.35 -0.25 -0.30 -0.15 -0.24 -0.09 -0.15 0.00 -0.05 0.10 Crossover 5Y 386.73 2.29 36.40 52.89 389.82 280.05 France 05/19 1.00 103.88 -0.16 0.00 0.00 0.00 0.00
2 5 - 10 Years 181.81 -0.23 3291.06 1.18 1.85 1.41
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.72 0.87 1.01 1.16 Europe 5Y 97.07 1.17 11.38 16.29 97.07 68.39 11/20 0.25 101.02 0.04 -0.01 -0.02 -0.01 0.00
3 10 - 15 Years 207.86 -0.40 3871.57 1.53 0.82 1.94
Swiss Franc - - - - - - - - - - - - Japan 5Y 86.13 3.13 5.38 14.69 86.57 65.01 11/25 1.00 101.19 0.87 0.00 -0.05 -0.02 0.00
4 5 - 15 Years 187.95 -0.28 3431.08 1.28 1.52 1.62
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 89.84 2.83 9.86 13.29 99.56 65.28 05/45 3.25 129.90 1.91 0.01 -0.05 0.05 0.00
5 Over 15 Years 301.02 -0.61 4388.52 1.79 -1.98 2.39
US Dollar 0.32 0.42 0.32 0.42 0.40 0.50 0.60 0.70 0.80 0.90 1.10 1.20 Germany 04/19 0.50 102.73 -0.34 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.92 -0.34 3269.64 1.23 -0.03 2.10
Japanese Yen 0.02 0.12 -0.08 0.00 -0.20 0.00 -0.15 0.15 -0.15 0.15 -0.10 0.20 10/20 0.25 101.95 -0.16 0.00 0.00 0.00 0.00
Emerging Markets 5Y 400.12 19.31 21.10 41.91 400.12 299.17 08/25 1.00 104.92 0.47 0.00 -0.07 -0.08 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 554.49 27.42 32.19 40.58 554.49 416.39 08/46 2.50 129.71 1.31 0.00 -0.08 0.00 0.00
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jan 18 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 109.69 6.05 10.96 14.38 109.69 75.52 Greece 07/17 3.38 90.61 10.48 0.91 2.00 3.10 0.00
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 308.04 -0.05 -0.24 -1.98 2363.28 0.18 -0.56
02/26 3.00 65.81 8.83 0.07 0.49 0.81 0.00 2 Over 5 years 571.74 -0.24 0.10 -3.77 4225.32 0.23 -3.06
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.13 -0.29 0.00 0.00 0.00 0.00 3 5-15 years 427.91 -0.33 -0.02 -3.85 3262.63 0.32 -2.60
05/26 1.00 98.83 1.12 0.01 -0.03 0.00 0.00 4 Over 15 years 706.33 -0.20 0.15 -3.61 5119.28 0.19 -3.10
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.60 0.08 0.00 0.00 -0.09 0.00 5 All stocks 529.02 -0.21 0.05 -3.50 3961.52 0.22 -2.67
11/20 0.65 100.41 0.56 0.00 -0.02 -0.05 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 103.98 1.57 0.01 -0.02 -0.02 0.00 Yield Indices Jan 18 Jan 15 Yr ago Jan 18 Jan 15 Yr ago
Crude Oil† Feb 30.34 0.60 Corn♦ Mar 363.25 0.00 Jan 15 Jan 15 Prev return stock Market stocks
09/46 3.25 112.36 2.67 0.03 -0.03 0.05 0.00 5 Yrs 1.00 0.96 1.01 20 Yrs 2.41 2.38 2.10
Brent Crude Oil‡ 28.70 -0.52 Wheat♦ Mar 473.00 0.00 Can 4.25%' 21 126.97 -0.298 -0.269 -0.21 5.18 70707.57 7
Japan 01/18 0.10 100.25 -0.02 0.00 0.00 0.00 0.00 10 Yrs 1.75 1.71 1.57 45 Yrs 2.37 2.33 2.20
RBOB Gasoline† Jan 1.04 0.01 Soybeans♦ Mar 878.00 0.00 Fr 2.25%' 20 113.16 -0.611 -0.632 -0.89 20.31 212350.40 14
02/21 0.05 100.06 0.04 0.00 0.00 0.00 0.00 15 Yrs 2.21 2.17 1.92
Heating Oil† Jan 0.93 -0.05 Soybeans Meal♦ Mar 269.70 0.00 Swe 0.25%' 22 107.91 -0.811 -0.821 0.72 32.00 234961.28 7
12/25 0.30 100.93 0.20 -0.01 -0.02 -0.07 0.00
Natural Gas† Jan 2.09 -0.02 Cocoa (ICE Liffe)X Mar 2114.00 -1.00 UK 2.5%' 20 358.32 -1.189 -1.147 0.98 6.58 490384.62 25
12/45 1.40 104.31 1.20 -0.03 0.01 -0.07 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2906.00 58.00 UK 2.5%' 24 338.57 -0.809 -0.770 1.86 6.82 490384.62 25
Netherlands 04/17 0.50 101.11 -0.39 0.00 0.00 0.00 0.00 Real yield Jan 18 Dur yrs Previous Yr ago Jan 18 Dur yrs Previous Yr ago
Uranium Jan 36.75 0.00 Coffee(Robusta)X Jan 1372.00 -22.00 UK 2%' 35 229.78 -0.735 -0.714 2.18 9.08 490384.62 25
07/25 0.25 96.18 0.67 0.01 -0.06 -0.05 0.00 Up to 5 yrs -0.88 2.32 -0.90 -1.11 -1.59 2.34 -1.62 -1.80
Carbon Emissions - - Coffee (Arabica)♥ Mar 115.00 -0.70 US 0.625%' 21 101.45 0.359 0.351 0.65 35.84 1121483.60 36
Diesel Mar - - White SugarX 426.80 -0.40 New Zealand 03/19 5.00 107.44 2.53 -0.06 -0.13 -0.22 0.00 Over 5 yrs -0.81 23.48 -0.82 -0.94 -0.83 23.55 -0.84 -0.98
US 3.625%' 28 131.60 0.895 0.351 0.52 16.78 1121483.60 36
Unleaded (95R) - - Sugar 11♥ 14.87 0.01 04/27 4.50 111.45 3.27 -0.04 -0.14 -0.27 0.00 5-15 yrs -0.71 9.57 -0.75 -1.02 -0.81 9.58 -0.84 -1.17
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.73 0.63 0.01 -0.01 -0.07 0.00 Over 15 yrs -0.82 29.06 -0.83 -0.93 -0.83 29.09 -0.84 -0.96
Base Metals (♠ LME 3 Months) Cotton♥ Mar 61.39 -0.59 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 103.43 1.35 0.02 0.00 -0.10 0.00 All stocks -0.81 20.42 -0.82 -0.94 -0.84 20.55 -0.85 -0.99
Aluminium 1484.00 11.50 Orange Juice♥ Mar 127.95 -3.80 amount.
Aluminium Alloy 1620.00 15.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 113.38 0.75 0.02 -0.01 0.02 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4376.50 51.00 Live Cattle♣ Feb 127.58 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 98.93 3.00 0.04 0.00 0.00 0.00
Lead 1614.00 16.00 Spain 04/18 0.25 100.26 0.13 0.00 -0.01 -0.11 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 154.30 -4.35
Nickel 8595.00 190.00 Lean Hogs♣ Feb 62.00 0.00 Spread Spread Spread Spread 04/26 1.95 100.88 1.86 0.00 0.00 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 13305.00 5.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.44 1.21 0.00 -0.12 -0.17 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1498.00 22.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 115.42 0.78 0.02 -0.08 -0.21 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 15 Month Year Australia 2.71 2.23 0.67 Italy 1.57 1.10 -0.47 Switzerland 05/19 3.00 113.02 -0.86 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1089.20 -4.55 S&P GSCI Spt 279.17 -10.30 -27.96 Austria 0.79 0.31 -1.25 Japan 0.20 -0.27 -1.83 05/26 1.25 114.65 -0.15 0.00 0.00 0.00 0.00
Silver (US cents) 1388.00 8.00 DJ UBS Spot 73.49 -5.74 -28.20 Belgium 1.01 0.54 -1.03 Netherlands 0.67 0.19 -1.37 United Kingdom 07/18 1.25 101.60 0.61 0.02 -0.10 -0.18 0.00 Data provided by Morningstar | www.morningstar.co.uk
Platinum 816.00 -23.00 R/J CRB TR 160.44 -8.18 -27.39 Canada 1.28 0.81 -0.76 Norway 1.35 0.88 -0.69 01/21 1.50 101.71 1.15 0.03 -0.11 -0.17 0.00
Palladium 495.00 3.00 Rogers RICIX TR 1841.66 - - Denmark 0.80 0.33 -1.24 Portugal 3.00 2.52 0.96 09/25 2.00 102.68 1.70 0.03 -0.08 -0.12 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.79 0.32 -1.25 Spain 1.86 1.39 -0.18 01/45 3.50 120.66 2.49 0.03 -0.07 -0.05 0.00
Iron Ore (Platts) 42.65 1.65 UBS Bberg CMCI TR 11.00 -8.55 -28.17 France 0.87 0.40 -1.16 Switzerland -0.15 -0.63 -2.19 United States 12/17 1.00 100.28 0.85 0.00 0.00 0.00 0.00
Iron Ore (The Steel Index) 41.90 1.70 LEBA EUA Carbon 7.22 -9.98 1.12 Germany 0.47 0.00 -1.57 United Kingdom 1.70 1.22 -0.34 12/20 1.75 101.40 1.46 0.00 0.00 0.00 0.00
GlobalCOAL RB Index 49.00 0.50 LEBA CER Carbon 0.41 -16.33 -10.87 Greece 8.83 8.35 6.79 United States 2.04 1.57 0.00 11/25 2.25 101.88 2.04 0.00 0.00 0.00 0.00
Baltic Dry Index 369.00 -4.00 LEBA UK Power 1333.00 61.19 -38.99 Ireland 1.12 0.65 -0.92 11/45 3.00 103.72 2.81 0.00 0.00 0.00 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
22 FINANCIAL TIMES Tuesday 19 January 2016

MANAGED FUNDS SERVICE

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

European Opportunities A EUR € 2.17 - -0.07 1.60 Global Bond USD $ 3.41 3.67 -0.01 0.00 Invesco Gold & Precious Metals A $ 3.23 - -0.02 0.00 Aggressive Strategy £ 1.7090 - -0.0220 0.00

ACPI Global UCITS Funds Plc (IRL) Atlantis Investment Management Ltd (IRL) LNG Capital (CYM)
www.acpishard.com 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Global Opportunities I USD $ 1.48 - -0.02 2.12 Invesco Greater China Equity A $ 38.74 - -0.42 0.00 Global USD Growth Strategy $ 1.2590 - -0.0190 0.00 Kingsbury House, 15-17 King St, London SW1Y 6QU
Regulated www.atlantis-investmenet.com, Tel: 0207 877 3377 www.lngcapital.com, Tel: 0207 839 3456
Genesis Asset Managers LLP Dealing Daily
Regulated Global Opportunities I GBP £ 1.04 - -0.01 1.93 Invesco India Equity A $ 46.78 - -1.47 0.00 Regulated
ACPI Emerging Mkts FI UCITS Fund USD A $ 103.04 - -0.72 0.00 Other International Funds
Atlantis China Fund $ 6.44 - 0.00 0.00 LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Global Opportunities I EUR € 1.52 - -0.01 1.98 Emerging Mkts NAV £ 4.77 - -0.05 0.00 Invesco Japanese Equity Adv Fd A ¥ 3505.00 - -33.00 0.00
ACPI Global Credit UCITS Funds USD A $ 13.88 - -0.02 0.00 M & G (Guernsey) Ltd (GSY)
Cheyne Capital Management (UK) LLP (IRL) Regulated
Atlantis China Healthcare Fund $ 1.84 - 0.00 0.00 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
Regulated Global Opportunities A GBP £ 0.97 - -0.01 1.46 Invesco Japanese Value Eq Fd A ¥ 1171.00 - -13.00 0.00 The M&G Offshore Fund Range
ACPI Global Fixed Income UCITS Fund USD A $ 152.46 - 0.12 0.00
Atlantis Japan Opportunities Fund $ 2.39 - -0.04 0.00 Cheyne Convertibles Absolute Return Fund € 1321.08 - -6.52 0.00 HPB Assurance Ltd Corporate Bond 1302.39 1342.67 -2.99 3.08 LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
Pan European Opportunities I EUR € 1.36 - -0.05 - Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Invesco Latin American Equity A $ 4.92 - -0.10 0.00
Q ACPI India Fixed Income UCITS Fund USD A $ 9.76 - -0.08 -
International Insurances
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Cheyne Global Credit Fund € 114.35 - -0.71 0.00 Global Basics 2154.81 2221.46 -4.43 0.34
Invesco Nippon Small/Mid Cap Equity A ¥ 939.00 - -16.00 0.00
ACPI India Fixed Income UCITS Fund USD A3 $ 83.43 - -0.68 0.00 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
Marlborough International Management Limited (GSY)
Cheyne European Mid Cap Fund € 1114.16 - -7.90 0.00 Global Leaders 3112.79 3242.49 -22.63 1.15 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Invesco Pan European Equity A EUR Cap NAV € 16.87 - -0.21 0.00
ACPI International Bond UCITS Fund USD A $ 17.97 - 0.09 0.00 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00 FCA Recognised

AXIOM
ALTERNATIVE INVESTMENTS
Cheyne Capital Management (UK) LLP
Invesco Pan European High Income Fd A € 13.29 - -0.07 2.48
Global High Yield Bond 922.30 950.83 -6.09 4.76
Marlborough North American Fund Ltd £ 30.21 32.19 -1.05 0.00

Other International Funds Haussmann Global Macro Bond Fund 11433.35 11786.96 -62.89 1.39
ACPI Select UCITS Funds PLC (IRL)
Invesco Pan European Small Cap Equity A € 20.49 - -0.60 0.00 Marlborough Tiger Fund Ltd F £ 24.40 26.00 -0.75 0.00
Regulated Other International Funds
Cheyne European Event Driven Fund € 134.54 - -11.29 0.00 EFG Hermes
North American Dividend Fund 148.20 154.37 -0.12 2.44
ACPI Balanced UCITS Fund USD Retail $ 13.25 - -0.02 0.00 DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Invesco Pan European Structured Equity A € 15.86 - -0.17 0.00
Axiom Alternative Investments (FRA) Haussmann Cls A $ 2682.99 - 11.43 0.00
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
1 Conduit Street - 4th floor - London W1S 2XA Cheyne Real Estate Credit Holdings Fund £ 162.87 - 1.01 0.00 Marwyn Asset Management Limited (CYM)
Other International Funds Optimal Income Fund 138.37 142.65 -0.57 2.64
ACPI Balanced UCITS Fund EUR Retail € 9.99 - -0.01 0.00 www.axiom-ai.com Tel: +44 330 822 0374 Haussmann Cls C € 2344.47 - 7.66 0.00 Invesco UK Eqty Income A £ 30.31 - -0.29 0.00 Regulated
Regulated Cheyne Real Estate Credit Holdings Fund III £ 111.98 - 0.56 0.00 The EFG-Hermes Egypt Fund $ 29.93 - - 0.00
Recovery Fund Limited 'A' Participating Shares 9075.66 9453.82 -124.36 0.53 Marwyn Value Investors £ 450.92 - -7.87 0.00
ACPI Balanced UCITS Fund GBP Retail £ 10.10 - -0.02 0.00 Axiom Contingent Capital € 1009.98 - -5.68 - Haussmann Cls D SFr 1239.94 - 3.45 0.00 Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.89
Cheyne Real Estate Debt Fund Class A1 £ 131.65 - 0.83 0.00 EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - -
Recovery Fund Limited 'I' Participating Shares 9055.30 9146.76 -127.87 1.43
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Axiom Contingent Capital £ 1014.27 - -6.02 - Invesco US Structured Equity A $ 19.44 - -0.03 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - -
Meridian Fund Managers Ltd
Heartwood Wealth Management Limited (IRL) Strategic Corporate Bond Fund 131.64 137.13 -0.33 2.97 Other International Funds
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Axiom Equity $ 761.71 - -32.31 - Regulated Invesco US Value Eq Fd A $ 27.60 - -0.37 0.00
Cheyne Total Return Credit Fund 2020 $ 103.39 - 0.01 - Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Global Gold & Resources Fund $ 184.00 - 2.35 -
Heartwood Caut Multi Asset B Acc 136.31 - -0.47 0.00 UK Select 1376.12 1433.46 -14.08 1.01
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Axiom Equity € 800.20 - -33.80 0.00 Invesco USD Reserve A $ 87.02 - 0.00 0.00
Saudi Arabia Equity Fund SR 11.16 - -0.02 0.00 Global Energy & Resources Fund $ 31.18 - -3.49 -
ACPI Horizon UCITS Fund $ 12.40 - -0.12 0.00 Axiom Obligataire $ 1749.11 - -6.49 0.00 Cohen & Steers SICAV (LUX)
Regulated MFS Investment Funds (LUX)
Invesco Global Asset Management Ltd (IRL) FCA Recognised
Axiom Obligataire € 1744.41 - -6.40 0.00 Ennismore Smaller Cos Plc (IRL) Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200 Mirabaud Asset Management (LUX)
European Real Estate Securities € 21.6635 - -0.5889 1.58
5 Kensington Church St, London W8 4LD 020 7368 4220 FCA Recognised Blend.Research Gb.Eq.Fd. € 92.80 - -3.51 - www.mirabaud.com, marketing@mirabaud.com
Axiom Obligataire £ 1756.79 - -6.64 0.00 FCA Recognised Regulated
Europ.RealEstate Sec. IX € 29.0539 - -0.7900 0.00 Invesco Stlg Bd A QD F £ 2.58 - -0.01 3.34
Blend.Research Gb.Eq.Fd. £ 95.43 - -2.02 -
Ennismore European Smlr Cos NAV £ 104.39 - 0.92 0.00 Mir. Conv. Bds Eur A EUR € 132.09 - -1.39 0.00
Gbl Listed Infrastructure I $ 9.2221 - -0.1283 - Hermes Investment Funds Plc (IRL) Invesco Asian Equity A $ 5.50 - -0.10 0.53
Blend.Research U.S.Core Eq.Fd. ¥ 9112.00 - -300.00 -
BLME Asset Management (LUX) Ennismore European Smlr Cos NAV € 136.39 - -1.01 0.00 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Mir. Conv. Bds Glb A USD $ 109.17 - -1.20 0.00
BLME Sharia'a Umbrella Fund SICAV SIF Gbl Listed Infrastructure IX $ 9.2622 - -0.1288 - FCA Recognised Invesco ASEAN Equity A $ 81.57 - -0.85 0.29
Algebris Investments (IRL)
Regulated Blend.Research Gb.Eq.Fd. $ 89.72 - -2.44 -
Regulated Hermes Abs Return Credit Fund Class F Acc £ £ 1.06 1.06 0.01 - Mir. - Eq Asia ex Jap A $ 152.96 - -1.69 0.00
Gbl RealEstate Sec. I $ 10.1975 - -0.0605 1.40 Invesco Bond A $ 26.71 - -0.07 1.99
Income Fund - Share Class A Acc $ 1134.29 - -0.05 0.00 Ennismore European Smlr Cos Hedge Fd Em.Mk.Eq.Fund Euro € 97.56 - -3.71 0.00
Algebris Financial Credit Fund - Class I EUR € 130.73 - -0.61 0.00
Other International Funds Hermes Abs Return Credit Fund Class R Acc € € 1.98 1.98 -0.02 - Mir. - Eq Glb Emrg Mkt A USD $ 76.30 - -0.79 0.00
Income Fund - Share Class G Acc £ 1074.88 - -0.07 0.00 Gbl RealEstate Sec. IX $ 12.1414 - -0.0720 0.00 Invesco Continental Eurp Small Cap Eqty A $ 183.23 - -3.97 0.00
Algebris Financial Income Fund - Class I EUR € 111.20 - -1.25 0.00 NAV € 496.00 - 10.70 0.00 Em.Mk.Eq.Fund Sterling £ 87.81 - -1.87 0.00
Hermes Active UK Inflation Fund Class F Acc £ 1.28 1.28 -0.01 0.00 Mir. - Eq Global Focus A USD $ 92.58 - -2.00 0.00
Gl Sukuk Fund - Share Class A Acc $ 1217.60 - -2.12 0.00 Invesco Emerging Markets Equity A $ 30.71 - -0.62 0.00
Algebris Financial Equity Fund - Class B EUR € 88.23 - -2.43 - Em.Mk.Eq.Fd.US Dollar $ 81.61 - -2.23 0.00
Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.47 1.47 -0.01 0.00 Mir. -Eq Spain A € 22.83 - -0.67 0.00
Gl Sukuk Fund - Share class B Acc £ 1086.71 1086.71 -1.94 0.00 Equinox Fund Mgmt (Guernsey) Limited (GSY) Invesco Emerging Markets Bond A $ 20.06 - -0.07 4.66
Algebris Asset Allocation Fund - Class B EUR € 95.96 - -0.83 - Regulated Gb.Conc.Eq.Fd.Euro € 258.88 - -7.76 0.00
Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.06 3.06 -0.03 0.00 Mir. - Eq Swiss Sm/Mid A SFr 308.41 - -7.28 0.00

Equinox Russian Opportunities Fund Limited $ 119.68 - 0.92 0.00 Invesco Continental European Equity A € 7.79 - -0.12 0.20
Gb.Conc.Eq.Fd.Sterl.UK T £ 165.80 - -2.21 0.00
Hermes Global Emerging Markets Fund Class F Acc £ 1.09 1.09 -0.02 0.00 Mir. - Glb High Yield Bds A $ 104.78 - -0.70 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL)
Alken Asset Management (LUX)
Regulated
Invesco Gilt A £ 15.14 - -0.02 1.39
61 Conduit Street, London, W1S 2GB Gb.Conc.Eq.Fd.Sterling £ 250.89 - -3.36 0.00
Crèdit Andorrà Asset Management (LUX)
Asset Management Hermes Global Emerging Markets Fund Class R Acc € 2.65 2.65 -0.05 0.00 Mir. - Glb Eq High Income A USD $ 91.33 - -1.41 0.00
www.alken-am.com Global Liquidity USD $ 1.00 - 0.00 0.48 www.creditandorra.com Euronova Asset Management UK LLP (CYM)
Regulated FCA Recognised Regulated
Hermes Global Equity Fund Class F Acc £ 1.43 1.43 -0.02 0.00
Asset Management
Invesco Global Small Cap Equity A NAV $ 107.65 - -1.22 0.00
Gb.Conc.Eq.Fd.US $ 179.52 - -3.48 0.00
Mir. - Glb Inv Grade Bds A
Asset Management€ 99.60 - -0.08 -
Alken European Opportunities € 186.45 - -6.09 0.00 Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 0.00 Smaller Cos Cls One Shares (Est) € 34.53 - -1.67 0.00 Invesco Global High Income A NAV $ 11.56 - -0.05 6.06
Gb.Eq.Hdg Fd.Euro IRE T € 167.58 - -4.03 0.00
Barclays Investment Funds (CI) Ltd (JER) Hermes Global Equity Fund Class R Acc € 3.61 3.61 -0.06 0.00 Mir. - Glb Strat. Bd A USD $ 102.80 - -0.25 0.00
Alken European Opportunities £ 114.18 - -1.82 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00 Smaller Cos Cls Two Shares (Est) € 24.18 - -1.04 0.00 Invesco Gbl R/Est Secs A GBP F F £ 7.71 - -0.04 0.88
FCA Recognised Gb.Eq.Euro Hdg Fd. € 237.44 - -5.71 0.00
Hermes Global ESG Equity Fund Class F Acc £ 1.11 1.11 -0.01 0.00
Bond Funds Smaller Cos Cls Three Shares (Est) € 12.06 - -0.65 0.00
Alken Absolute Return € 135.02 - -2.24 0.00 Crediinvest SICAV Fixed Income Eur € 10.39 - -0.02 0.00 Invesco Global Health Care A $ 114.54 - -0.85 0.00
Gb.Eq.Fund Euro € 258.96 - -7.91 0.00 MW Japan Fund Plc (IRL)
Sterling Bond F £ 0.46 - 0.00 3.34 Hermes Global High Yield Bond Fund Class F Acc £ 1.07 1.07 0.01 0.00 FCA Recognised
Alken Absolute Return £ 109.61 - -1.88 0.00 Crediinvest SICAV Fixed Income Usd $ 10.32 - -0.02 0.00 Smaller Cos Cls Four Shares (Est) € 15.65 - -0.67 0.00 Invesco Global Select Equity A $ 11.56 - -0.13 0.00
Gb.Eq. Fd Euro IRE T € 163.87 - -5.01 0.00 MW Japan Fund PLC A $ 23.71 - -0.29 -
Hermes Global High Yield Bond Fund Class R Acc € 2.65 2.65 -0.03 0.00
Alken Small Cap € 171.43 - -5.61 0.00 Crediinvest SICAV Spanish Value € 222.63 - -6.87 0.00 Invesco Jap Eqty Core A $ 1.71 - -0.02 0.00
Baring International Fd Mgrs (Ireland) (IRL) Gb.Eq.Fd.Sterling UK T £ 200.55 - -2.80 0.00 MW Japan Fund PLC B $ 23.89 - -0.29 -
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Hermes Global Small Cap Fund Class F Acc £ £ 0.94 0.94 -0.01 -
FCA Recognised Crediinvest SICAV International Value € 183.25 - -7.17 0.00 Invesco Japanese Equity A $ 17.86 - -0.21 0.00
Gb.Eq.Fd.US Dollar $ 283.49 - -5.66 0.00 MW Japan Fund PLC C $ 89.19 - -1.05 -
Amundi Funds (LUX) Hermes Global Small Cap Fund Class R Acc € € 1.77 1.77 -0.03 -
ASEAN Frontiers A GBP Inc £ 107.16 - -0.50 0.58
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Crediinvest SICAV Big Cap Value € 13.71 - -0.46 0.00 Invesco Korean Equity A $ 33.20 - 0.37 0.00
Gb.Eq.Fund Sterling £ 198.18 - -2.76 0.00
www.amundi-funds.com Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.95 0.95 -0.01 0.00
Asia Growth A GBP Inc H £ 43.28 - -0.22 0.00
FCA Recognised Crediinvest SICAV US American Value $ 16.61 - -0.29 0.00 Invesco PRC Equity A $ 43.71 - -0.52 0.00 Morant Wright Funds (Ireland) PLC (IRL)
Eurobank Fund Management Company (Luxembourg) S.A. Gb.Val.Ex-Jap.Fd.USD $ 108.09 - -2.30 0.00 FCA Recognised
Bd. Euro Corporate AE Class - R - EUR € 18.32 - -0.02 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.00 1.00 -0.01 0.00
Australia A GBP Inc £ 65.28 - -0.32 1.82 Regulated
Crediinvest SICAV Sustainability € 14.19 - -0.16 0.00 Invesco Pacific Equity A $ 42.62 - -0.59 0.07 Morant Wright Fuji Yield EUR Dist Hedged € 10.14 - -0.14 -
Gb.Val.Ex-Japan Fd.Yen ¥ 12421.00 - -397.00 0.00
(LF) Absolute Return € 1.31 - 0.00 0.00 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.23 1.23 -0.01 0.00
Bd. Global AU Class - R - USD $ 25.22 - -0.01 0.00 Baring China Bond Fund $ 9.65 - 0.00 0.00
Invesco Global Technology A $ 14.30 - -0.17 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 10.51 - -0.14 0.00
Gb.Val.Fd. Euro € 122.27 - -3.94 0.00
(LF) Eq Emerging Europe € 0.61 - -0.02 0.00 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.19 1.19 -0.02 1.30
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Baring Emerging Markets Corporate Debt Fund $ 8.96 - -0.06 0.00 Daiwa SB Investments (UK) Ltd (LUX)
5 King William Street, London EC4N 7DA Invesco UK Eqty A £ 7.28 - -0.06 1.38 Morant Wright Fuji Yield GBP Dist Hedged £ 10.22 - -0.14 -
Gb.Val.Fd.Sterling £ 113.98 - -1.77 0.00
www.daiwasbi.co.uk 0207 597 7000 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Hermes Sourcecap EU Alpha Fund Class R Acc € 2.86 2.86 -0.03 0.00
Eq. Emerging World AU Class - R - USD $ 71.72 - -1.23 0.00 Baring European Opportunities Fund Class A EUR Acc € 12.38 - -0.23 0.00
Regulated Morant Wright Fuji Yield USD Acc Hedged $ 10.23 - -0.14 0.00
Gb.Val.Fd.USD $ 96.53 - -2.08 0.00
(LF) Eq Mena Fund € 11.31 - -0.50 0.00 Hermes Sourcecap EX UK Fund Class F Acc £ 1.30 1.30 -0.01 0.00
Eq. Greater China AU Class - R - USD $ 489.83 - -4.50 0.00 Baring Global Mining Fund - Class A GBP Inc £ 3.11 - 0.00 0.65 DSBI Japan Equity Fundamental Active I JPY ¥ 11210.95 11210.95 -101.29 0.00 Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com Morant Wright Fuji Yield USD Dist Hedged $ 10.26 - -0.14 2.14
Low Volatility Gb.Eq.Fd.Euro € 98.44 - -2.72 -
(LF) Greek Government Bond € 17.42 - -0.31 - Hermes Sourcecap EX UK Fund Class R Acc € 2.92 2.92 -0.05 0.00 Other International Funds
Eq. Latin America AU Class - R - USD $ 273.36 - -8.52 0.00 Dynamic Emerging Markets A GBP Acc F £ 8.22 - -0.04 0.00 DSBI Japan Equity Fundamental Active I GBP £ 110.65 110.65 -1.09 0.00
Morant Wright Fuji Yield YEN Acc ¥ 1055.84 - -14.19 0.00
Invest AD - Iraq Opportunity Fund $ 59.36 - -0.97 0.00 Low Volatility Gb.Eq.Fd.Sterl £ 101.22 - -1.12 -
(LF) Greek Corporate Bond € 11.85 - -0.03 - Hermes UK Small & Mid Cap Fund Class F Acc £ 1.59 1.59 -0.03 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.38 - -0.09 0.00 Eastern Europe A GBP Inc £ 36.13 - -0.63 1.84 DSBI Japan Equity Fundamental Active A EUR € 106.29 111.60 -1.01 0.00
Morant Wright Fuji Yield B YEN Acc ¥ 930.27 - -12.05 -
Invest AD - Emerging Africa Fund $ 830.80 - -5.61 0.00 Low Volatility Gb.Eq.Fd.USD $ 95.17 - -1.62 -
(LF) FOF Dynamic Fixed Inc € 11.64 - -0.02 0.00 Hermes UK Small & Mid Cap Fund Class R Acc € 4.58 4.58 -0.09 0.00
Emerging Mkt Debt LC A GBP Hedged Inc £ 6.69 - -0.07 6.72
Morant Wright Fuji Yield YEN Dist ¥ 1033.94 - -13.90 2.13
The Antares European Fund Limited DAVIS Funds SICAV (LUX) (LF) FOF Real Estate € 15.76 - -0.25 0.00
Invest AD - GCC Focus Fund $ 1242.63 - 0.08 0.00 Low Volatility Gb.Eq.Fd.Yen ¥ 8675.00 - -240.00 -
Hermes US All Cap Equity Class F Stg £ Acc £ 0.95 0.95 -0.02 -
Other International Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00 Regulated
Morant Wright Sakura Fund Sterling Acc Hedged £ 12.77 - -0.15 0.00
AEF Ltd Usd (Est) $ 649.95 - -31.70 - Davis Value A $ 35.61 - -0.94 0.00 Hermes US All Cap Equity Class R € Acc € 1.80 1.80 -0.03 -
Glb Emerging Markets A GBP Inc H £ 16.97 - -0.18 0.00
MFS Meridian Funds SICAV (LUX)
Morant Wright Sakura Fund Euro Acc Hedged € 12.74 - -0.15 0.00
FIL Fund Management (LUX)
Davis Global A $ 24.78 - -0.67 0.00 Regulated
AEF Ltd Eur (Est) € 651.94 - -31.88 0.00 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Hermes US SMID Equity Fund Class F Acc £ 1.54 1.54 -0.01 0.00
Glb Resources A GBP Inc H £ 9.82 - -0.02 0.38
Phone: 800 22 089, 800 22 088 Absolute Return A1 € 19.82 - -0.02 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1302.93 - -15.32 0.00
Regulated
Hermes US SMID Equity Fund Class R Acc € 3.15 3.15 -0.04 0.00
High Yield Bond A GBP Hedged Inc H £ 5.96 - -0.04 7.21
Arisaig Partners China Consumer A-GBP £ 13.10 - -0.36 0.00 Asia ex-Japan A1 $ 20.14 - -0.61 0.00 Morant Wright Sakura Fund Dollar Acc Hedged $ 12.70 - -0.15 0.00
Other International Funds Hong Kong China A GBP Inc £ 525.04 - -5.12 0.58 GAM
China Focus A-GBP £ 3.81 - -0.12 0.69 funds@gam.com, www.jbfundnet.com Bond A1 $ 10.29 - 0.00 0.00 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 12.61 - -0.15 0.00
Arisaig Africa Consumer Fund Limited $ 12.88 - -0.18 0.00 INDIA VALUE INVESTMENTS LIMITED (INVIL)
www.invil.mu Regulated
India Fund - Class A GBP Inc £ 13.63 - -0.23 0.00
Global Financial Services A-GBP £ 0.42 - 0.00 0.11 Other International Funds China Equity Fd A1 $ 9.28 - -0.01 0.00
Arisaig Asia Consumer Fund Limited $ 60.14 - -0.67 0.00 Ms EF Special Val. EUR/A € 126.86 - -2.77 1.15
Latin America A USD Inc H $ 22.36 - -0.14 0.24 NAV £ 8.14 - -0.06 0.00
Dodge & Cox Worldwide Funds (IRL)
Global Health Care A-GBP £ 0.55 - 0.00 0.00 Continental European Eqty A1 € 15.92 - -0.49 0.00
Arisaig Global Emerging Markets Consumer UCITS € 10.97 - -0.26 0.00 6 Duke Street,St.James,London SW1Y 6BN Strategy Balanced-CHF/B SFr 143.00 - -1.88 0.00
MENA A GBP Inc F * £ 10.76 - -0.30 0.64 www.dodgeandcox.worldwide.com 020 3713 7664
FCA Recognised Global Industrials A-GBP £ 0.59 - -0.01 0.00 Emer Mkts Debt Lo Curr Fd A1 $ 10.30 - -0.11 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.72 - -0.08 0.00 Strategy Balanced-EUR € 147.49 - -2.04 0.00
Dodge & Cox Worldwide Funds plc - Global Bond Fund Intercapital Asset Management Ltd (HRV)
Masarykova ul. 1, 10000, Zagreb, Croatia Emerging Markets Debt A1 $ 31.95 - -0.13 0.00
Global Inflation-Linked Bd A-GBP-Hdg £ 1.14 - -0.01 0.56
www.icam.hr, Tel; +385 1 4825 868 Strategy Balanced-USD/B $ 123.46 - -1.35 0.00
Arisaig Latin America Consumer Fund $ 18.74 - -0.31 0.00 Baring International Fd Mgrs (Ireland) (IRL) EUR Accumulating Class € 11.42 - -0.13 0.00
Morgan Stanley Investment Funds (LUX)
Regulated Other International Funds 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Global Real Asset Securities £ 1.26 - -0.02 0.00 Emerging Markets Eq.A1 $ 9.00 - -0.25 0.00
EUR Accumulating Class (H) € 8.92 - -0.05 0.00 Strategy Growth-CHF/B SFr 86.39 - -1.68 0.00 www.morganstanleyinvestmentfunds.com
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 Capital One Bond Fund (Ex-YU) HRK 203.38 - 0.05 -
FCA Recognised
Artisan Partners Global Funds PLC (IRL) Global Technology A-GBP £ 0.24 - -0.01 0.00 European Concentrated A1 € 15.64 - -0.44 0.00
EUR Distributing Class € 10.82 - -0.12 3.62 Strategy Growth-EUR € 108.17 - -2.21 0.00
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Capital Two Equity Fund (Ex-YU) HRK 87.97 - -0.48 - US Advantage A F $ 53.05 - -0.02 0.00
Tel: 44 (0) 207 766 7130
Global Telecomms A-GBP £ 0.28 - 0.00 1.15 European Core Eq A1 € 28.36 - -0.79 0.00
FCA Recognised Barings (Luxembourg) (LUX) Strategy Inc-CHF/B SFr 116.13 - -0.89 0.00
EUR Distributing Class (H) € 8.44 - -0.05 3.71 Asian Equity A F $ 36.26 - 0.01 0.00
Artisan Partners Global Funds plc FCA Recognised
India Focus A-GBP £ 4.21 - -0.05 0.00 European Res.A1 € 29.33 - -0.90 0.00
Russia A GBP Inc F £ 22.68 - -0.02 0.00 GBP Distributing Class £ 10.08 - 0.05 3.57
Intrinsic Value Investors (IVI) LLP (IRL) Strategy Inc-EUR/B € 155.28 - -1.22 0.00
Artisan Emerging Markets I USD Acc $ 6.09 - -0.03 0.00 Asian Property A F $ 15.94 - -0.12 0.00
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Latin America A-GBP £ 1.21 - -0.02 0.67 FCA Recognised European Smaller Companies A1 € 47.95 - -1.24 0.00
GBP Distributing Class (H) £ 8.52 - -0.05 3.71 Strategy Inc-USD/B $ 142.52 - -0.80 0.00
Artisan Global Equity Fund Class I USD Acc $ 13.22 - 0.04 0.00 Asian Property AX F £ 10.78 - -0.01 0.54
IVI European Fund EUR € 16.34 - -0.38 0.00
BlackRock (JER) Sterling Cash Fund A-ACC-GBP £ 1.00 - - - European Value A1 € 33.36 - -1.02 0.00
Artisan Global Opportunities I USD Acc $ 11.33 - 0.03 0.00 Regulated USD Accumulating Class $ 8.99 - -0.06 0.00 Diversified Alpha Plus A F € 29.32 - -0.18 0.00
IVI European Fund GBP £ 16.85 - -0.12 0.67
BlackRock UK Property £ 41.67 - 0.46 3.26 Dodge & Cox Worldwide Funds plc-Global Stock Fund Global Conc.A1 $ 33.38 - -0.72 0.00
Artisan Global Value Fund Class I USD Acc $ 14.72 - 0.09 0.00 Emerg Europ, Mid-East & Africa Eq A F € 56.59 - -1.24 0.00
USD Accumulating Share Class $ 13.90 - -0.43 0.00 Findlay Park Funds Plc (IRL)
Blackrock UK Long Lease £ 1079.95 - 8.43 0.00 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Global Credit Fund $ 10.15 - -0.01 0.00
Artisan US Value Equity Fund Class I USD Acc $ 9.52 - 0.09 0.00 FCA Recognised Emerging Markets Debt A F $ 72.13 - -0.61 0.00
GBP Accumulating Share Class £ 16.04 - -0.32 0.00 Global Energy Fund A1 $ 10.77 - -0.32 0.00
BLK Intl Gold & General $ 3.68 3.88 0.04 0.00
American Fund USD Class $ 75.93 - 0.81 0.00
Emerging Markets Domestic Debt AX F £ 10.21 - 0.02 5.66
GBP Distributing Share class £ 11.67 - -0.23 0.98
Kames Capital VCIC (IRL)
Ashmore Sicav (LUX) 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Global Equity A1 $ 40.95 - -0.92 0.00
American Fund GBP Hedged £ 41.37 - 0.44 0.00
2 rue Albert Borschette L-1246 Luxembourg FCA Recognised Emerging Markets Equity A F $ 28.85 - -0.13 0.00
BONHOTE EUR Accumulating Share Class € 19.12 - -0.69 0.00
FCA Recognised Global Equity A1 € 23.91 - -0.50 0.00
Other International Funds American Fund GBP Unhedged £ 52.91 - 0.78 - Invesco (LUX) Absolute Return Bond B GBP Acc 1079.45 - -0.43 -
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Euro Bond A F € 15.72 - 0.00 0.00
Ashmore SICAV Emerging Market Debt Fund $ 86.26 - -0.68 9.02 Dodge & Cox Worldwide Funds plc-International Stock Fund
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6649.00 - -46.00 2.28 FCA Recognised Global High Yield Fund $ 23.20 - -0.19 0.00
Latin American Fund USD Class $ 10.18 - 0.14 0.00 Eq Market Neutral B Acc 1024.05 - -0.16 -
USD Accumulating Share Class $ 11.72 - -0.39 0.00 Invesco Management SA Euro Corporate Bond AX F £ 22.32 - 0.15 1.54
Ashmore SICAV Emerging Market Frontier Equity Fund $ 130.83 - -1.39 0.98
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9920.00 - 129.00 0.92 Global High Yield Fund € 15.55 - -0.12 0.00
Latin American Fund GBP Unhedged £ 7.20 - 0.13 - Invesco Active Multi-Sector Credit Fund A € 2.83 - -0.01 0.00 Eq Market Neutral Plus B Acc 1039.79 - -0.35 -
EUR Accumulating Share Class € 12.64 - -0.49 0.00 Euro Strategic Bond A F € 43.13 - -0.03 0.00
Ashmore SICAV Emerging Market Total Return Fund $ 73.86 - -0.57 6.41
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Global Multi-Asset A1 $ 14.21 - -0.19 0.00
Invesco Asia Balanced A dist $ 13.17 - -0.05 3.82 High Yield Global Bond A GBP Inc 505.55 - -3.81 5.26
Braemar Group PCC Limited (GSY) European Currencies High Yield Bd A F € 20.98 - -0.19 0.00
Ashmore SICAV Global Small Cap Equity Fund $ 112.24 - -3.18 0.00
Regulated USD Accumulating Share Class $ 16.11 - -0.44 0.00 Foord Asset Management Global Res.A1 $ 23.21 - -0.58 0.00
Other International Funds Invesco Asia Consumer Demand Fund A income $ 11.18 - -0.14 0.24 High Yield Global Bond B GBP Inc 1050.85 - -7.88 5.26
European Equity Alpha A F € 38.43 - -0.78 0.00
Ashmore SICAV Local Currency Fund $ 78.61 - -0.39 0.32 UK Agricultural Class A £ 1.25 - -0.02 0.00
GBP Accumulating Share Class £ 17.58 - -0.28 0.00 Global Total Return A1 € 16.96 - -0.21 0.00
Foord International Trust $ 32.64 - -0.36 0.00 Invesco Asia Infrastructure (A) $ 11.06 - -0.12 0.78 Investment Grade Global Bd A GBP Inc 552.77 - -0.01 2.34
European Property A F € 32.43 - -0.13 0.00
EM Mkts Corp.Debt USD F $ 81.83 - -0.51 9.18 UK Agricultural Class B £ 1.37 - -0.02 0.00
GBP Distributing Share Class £ 11.18 - -0.18 0.61 Inflation-Adjusted Bond A1 $ 13.79 - -0.01 0.00
Foord Global Equity Fund_Class B $ 11.26 - -0.19 0.00 Invesco Asia Opportunities Equity A $ 92.44 - -0.66 0.00 Kames Global Equity Income B GBP Acc 1149.22 - -7.12 -
Eurozone Equity Alpha A F € 10.30 - -0.23 0.00
EM Mkts Loc.Ccy Bd USD F $ 71.90 - -0.49 4.41 Student Accom Class B £ 0.55 - -0.17 0.00
EUR Accumulating Share Class € 19.15 - -0.61 0.00 Japan Equity A1 $ 9.51 - -0.25 0.00
Invesco Balanced Risk Allocation Fund A € 14.05 - -0.02 0.00 Kames Global Equity Income B GBP Inc 1095.48 - -6.79 -
Global Bond A F $ 37.99 - -0.19 0.00
Franklin Templeton International Services Sarl (IRL)
Latin American Equity Fd A1 $ 9.81 - -0.32 0.00
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Invesco Emerging Europe Equity Fund A $ 6.47 - -0.14 0.00 Strategic Global Bond A GBP Inc 1079.81 - -1.71 0.71
CG Asset Management Limited (IRL) Global Brands A F $ 92.39 - -0.97 0.00
Other International Funds
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland
Franklin Emerging Market Debt Opportunities Fund Plc Limited Maturity A1 $ 13.99 - 0.00 0.00
00 353 1 434 5098 Invesco Emerging Local Currencies Debt A Inc $ 6.35 - -0.05 7.11 Strategic Global Bond B GBP Inc 613.17 - -0.92 1.21
Global Convertible Bond A F $ 40.10 - -0.10 0.00
FCA Recognised
Franklin Emg Mkts Debt Opp CHFSFr 16.83 - -0.61 8.30
Prudent Wealth Fd A1 $ 14.37 - -0.12 0.00
Capital Gearing Portfolio Fund Plc £ 27284.37 27284.37 26.55 0.61 Invesco Emerging Mkt Quant.Eq. A $ 7.90 - -0.11 0.00
Global Property A F $ 25.45 - -0.07 0.00
Franklin Emg Mkts Debt Opp EUR € 11.85 - -0.42 7.39 Lloyds Investment Fund Managers Limited (1000)F (JER)
Aspect Capital Ltd (UK) CG Portfolio Fund Plc Research Bond A1 $ 16.54 - 0.03 0.00
Dragon Capital Group Invesco Energy A $ 13.53 - -0.34 0.00 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Other International Funds Indian Equity A F $ 31.13 - -0.68 0.00
Real Return Cls A £ 174.53 174.53 2.43 1.74 c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Franklin Emg Mkts Debt Opp GBP £ 9.95 - -0.23 7.13 Other International Funds
UK Equity A1 £ 7.49 - -0.15 0.00
Fund information, dealing and administration: funds@dragoncapital.com Invesco Euro Corporate Bond Fund (A) € 16.79 - -0.03 0.00
Aspect Diversified USD $ 447.24 - 6.60 0.00 Lloydstrust Gilt £ 12.2500xd - 0.0100 2.33 Latin American Equity A F $ 31.55 - -0.08 0.00
Other International Funds
Dollar Fund Cls D £ 136.40 136.40 2.11 1.62 Franklin Emg Mkts Debt Opp SGD S$ 21.85 - -0.58 6.33
US Conc.Growth A1 $ 14.17 - -0.27 0.00
Invesco Euro Inflation Linked Bond A € 15.41 - -0.03 0.00 Lloyds Investment Funds Limited
Aspect Diversified EUR € 268.65 - 3.87 - Vietnam Enterprise Inv. (VEIL) NAV $ 3.48 - -0.11 0.00 Short Maturity Euro Bond A F € 20.34 - 0.00 0.00
Capital Value Fund Cls V £ 132.15 132.15 0.11 0.27 Franklin Emg Mkts Debt Opp USD $ 16.71 - -0.47 7.19 Euro High Income € 1.5850xd - -0.0040 2.93 US Government Bond A1 $ 17.18 - 0.05 0.00
Aspect Diversified GBP £ 137.57 - 2.07 0.00 Invesco Euro Reserve A € 322.66 - 0.00 0.00
Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 US Dollar Liquidity A F $ 13.03 - 0.00 0.00
European £ 7.0490 - -0.1040 1.57 Value A1 $ 20.00 - -0.41 0.00
Aspect Diversified CHF SFr 128.35 - 1.87 0.00 Invesco Euro Bond A € 7.08 - -0.02 0.00
Cedar Rock Capital Limited (IRL) Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00 Frontier Capital (Bermuda) Limited US Growth A F $ 61.70 - 0.18 0.00
Regulated Other International High Income £ 0.8567xd - -0.0009 5.00
Aspect Diversified Trends USD $ 132.93 - 0.44 0.00 Invesco European Growth Equity A € 22.41 - -0.25 0.00
Cedar Rock Capital Fd Plc $ 345.33 - -24.08 0.00 US Growth AH F € 42.61 - 0.33 0.00
Commercial Property-GBP Class £ 71.42 - -0.53 - MMIP Investment Management Limited (GSY)
DSM Capital Partners Funds (LUX) International £ 3.7540 - -0.0510 1.47
Invesco Global Absolute Return Fund A Class € 11.73 - -0.02 0.00 Regulated
Aspect Diversified Trends EUR € 133.06 - 0.44 0.00 www.dsmsicav.com US Growth AX F £ 42.86 - 0.52 0.00
Cedar Rock Capital Fd Plc £ 376.67 - -16.82 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 - Multi-Manager Investment Programmes PCC Limited
Regulated North American £ 14.9400 - -0.2200 0.25
Aspect Diversified Trends GBP £ 138.15 - 0.47 0.00 Invesco Global Bond A Inc $ 5.43 - -0.02 0.75 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
Cedar Rock Capital Fd Plc € 331.66 - -22.35 0.00 Global Growth I2 Acc € 124.87 - -4.27 0.00 US Property A F $ 65.24 - 0.57 0.00
Sterling Bond £ 1.4510xd - -0.0020 3.70
GYS Investment Management Ltd (GSY) Invesco Global Conservative Fund 90 (EUR) A € 11.78 - -0.03 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00
Global Growth I1 Eur € 93.37 - -3.20 -
Regulated
Atlantas Sicav (LUX) UK £ 5.9330 - -0.0750 1.93
Charles Schwab Worldwide Funds Plc (IRL) Invesco Global Equity Income Fund A $ 53.64 - -0.32 0.00 Morgens Waterfall Vintiadis.co Inc
Regulated MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00
Taurus Emerging Fund Ltd $ 161.34 164.63 -8.88 0.00 Other International Funds
Regulated Lloyds Gilt Fund Limited
American Dynamic $ 3156.19 - -182.66 0.00
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Edinburgh Partners Limited (IRL) Invesco Global Inc Real Estate Sec A dist $ 8.72 - -0.07 2.24
Lloyds Gilt Fund Quarterly Share £ 1.2770xd - 0.0010 1.85 Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00 Phaeton Intl (BVI) Ltd (Est) $ 381.15 - -21.38 0.00
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143
American One $ 2990.05 - -154.70 0.00 Dealing - Fax only - +353 1 434 5230 Generali Worldwide Invesco Global Inv Grd Corp Bond A Dist $ 11.78 - -0.03 3.04 UK Equity Fd Cl A Series 01 £ 2357.45 2381.20 0.73 0.00
FCA Recognised PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Monthly Share £ 1.2310xd - 0.0010 1.85

Bond Global € 1398.50 - -5.82 0.00 Chartered Asset Management Pte Ltd Edinburgh Partners Opportunities Fund PLC International Insurances
Invesco Global Leisure A $ 32.70 - -0.19 0.00 Lloyds Money Fund Limited Diversified Absolute Rtn Fd USD Cl AF2 $ 1586.40 - -4.69 0.00
Other International Funds
European Opportunities I EUR € 2.22 - -0.08 2.30 Global Multi-Strategy Managed $ 4.52 4.87 -0.11 0.00
Sterling Class £ 52.6210 - 0.0010 0.11
Eurocroissance € 833.31 - -40.64 0.00 CAM-GTF Limited $ 270848.04 270848.04 -9192.82 0.00 Invesco Global Smaller Comp Eq Fd A $ 51.83 - -0.69 0.00 Diversified Absolute Return Stlg Cell AF2 £ 1607.75 - -3.92 0.00
European Opportunities I GBP £ 1.69 - -0.04 2.46 UK Multi-Strategy Managed £ 4.72 5.09 -0.07 0.00 Lloyds Multi Strategy Fund Limited
Far East $ 617.21 - -43.50 0.00 CAM GTi Limited $ 605.58 - -7.40 0.00 Invesco Global Structured Equity A $ 43.02 - -0.28 0.74
Conservative Strategy £ 1.0900 - -0.0030 1.97
European Opportunities I USD $ 2.44 - -0.06 2.08 EU Multi-Strategy Managed € 2.97 3.20 -0.02 0.00
Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 Invesco Global Total Ret.(EUR) Bond Fund A € 12.97 - -0.04 0.00
Growth Strategy £ 1.4280 - -0.0140 1.32
Tuesday 19 January 2016 FINANCIAL TIMES 23

MANAGED FUNDS SERVICE

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

Odey European Inc EUR € 837.15 - -33.12 0.00 Pictet-EUR High Yield-I F € 236.78 - 0.63 0.00 UK Low Duration - Inst Acc £ 14.05 - 0.00 0.00 SWMC Emerging European Fund B EUR € 8039.57 - -236.35 0.00 Strat Evarich Japan Fd Ltd USD $ 822.92 - -71.91 0.00

Veritas Asset Management LLP (IRL)

Odey European Inc GBP A £ 322.51 - -12.70 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 136.96 - 0.03 0.00 UK Real Return - Inst Acc £ 22.82 - 0.10 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Veritas Funds Plc
E.I. Sturdza Funds PLC (IRL)
Odey European Inc GBP B £ 183.03 - -7.20 0.00 Pictet-EUR Short Term HY I EUR € 118.30 - -0.05 0.00 UK Sterling Long Average Duration - Inst Acc £ 22.07 - 0.20 0.00 www.veritas-asset.com
Regulated
+353 1 635 6799
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 986.82 - -6.53 0.00 FCA Recognised
Odey European Inc USD $ 387.15 - -14.81 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.94 - 0.00 0.00 Unconstrained Bond - Inst Acc $ 11.67 - -0.06 0.00
Institutional
Natixis International Funds (Lux) I SICAV (LUX)
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1162.74 - -7.67 0.00
Giano Capital EUR Inc € 4652.16 - 195.57 0.00 Pictet-Euroland Index IS EUR € 119.31 - -3.00 0.00 US High Yield Bond Fund Inst Acc $ 26.19 - -0.27 0.00 Veritas Asian Fund A USD H $ 287.67 - -2.42 0.42
FCA Recognised
RobecoSAM (LUX)
Tel. +41 44 653 10 10 http://www.robecosam.com/ Nippon Growth (UCITS) Fund JPY Class A shares ¥ 91304.00 - -599.00 0.00
Veritas Asian Fund A GBP H £ 369.26 - -1.86 0.24
Harris Global Equity R/A (USD) $ 226.51 226.51 -5.54 0.00 Pictet-Europe Index-I EUR F € 153.16 - -4.46 0.00
Regulated Guide to Data
Odey Asset Management LLP (IRL) Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 76561.00 - -502.00 0.00
Harris US Equity Fund R/A (USD) $ 182.98 182.98 -5.91 0.00 FCA Recognised Pictet-European Equity Selection-I EUR F € 566.54 - -17.48 0.00 RobecoSAM Sm.Energy/A £ 10.73 - -0.15 1.61 Veritas Asian Fund A EUR H € 299.70 - -1.36 0.21

Odey Pan European EUR R € 316.63 - -8.00 0.00 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00 The fund prices quoted on these pages are supplied by
Harris Concentrated US Equity R/A (USD) $ 138.54 138.54 -4.44 0.00 Pictet-European Sust Eq-I EUR F € 225.06 - -5.48 0.00 RobecoSAM Sm.Energy/N € 10.62 - -0.33 0.00 Veritas China Fund A USD $ 130.68 - 0.27 0.35 the operator of the relevant fund. Details of funds
published on these pages, including prices, are for the
Odey Absolute Return Focus Fund $ 100.00 - - - Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 49614.00 - -325.00 0.00 purpose of information only and should only be used as
Loomis Sayles Strategic Alpha R/A (USD) $ 108.21 108.21 -0.51 - Pictet-Global Bds Fundamental I USD $ 115.10 - 0.15 0.00 RobecoSAM Sm.Materials/A £ 114.09 - -1.40 1.43 Veritas China Fund A GBP £ 135.24 - 0.28 0.36 a guide. The Financial Times Limited makes no
Platinum Capital Management Ltd representation as to their accuracy or completeness and
Odey Allegra European EUR O € 247.58 - -4.84 0.00 Strategic China Panda Fund USD $ 1986.58 - -27.63 0.00 they should not be relied upon when making an
Pictet-Global Bonds-I EUR € 165.85 - -0.63 0.00 Other International Funds RobecoSAM Sm.Materials/N € 128.47 - -3.71 0.00 Veritas China Fund A EUR € 129.22 - 0.27 0.36 investment decision.

Natixis International Funds (Dublin) I plc (IRL) Odey Allegra International EUR O € 165.43 - -3.44 0.00 Platinum All Star Fund - A (Est) $ 117.32 - - - Strategic China Panda Fund Hedged EURO € 1940.69 - -25.09 0.00 The sale of interests in the funds listed on these pages
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Pictet-Global Emerging Currencies-I USD F $ 93.69 - -0.30 0.00 RobecoSAM Sm.Materials/Na € 88.66 - -2.56 - Veritas Global Equity Income Fund D USD $ 103.23 - -0.07 4.25
may, in certain jurisdictions, be restricted by law and
Regulated the funds will not necessarily be available to persons in
Odey Allegra Developed Markets USD I $ 115.00 - -2.46 0.00 Platinum Global Dividend Fund - A (Est) $ 55.26 - - - Strategic China Panda Fund Hedged Sterling £ 1965.46 - -26.04 0.00 all jurisdictions in which the publication circulates.
Pictet-Global Emerging Debt-I USD F $ 347.96 - -1.57 0.00 RobecoSAM Gl.Small Cap Eq/A £ 73.15 - -0.55 1.28 Veritas Global Equity Income Fund D EUR € 183.45 - 0.36 4.17
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.21 12.21 -0.03 1.22 Persons in any doubt should take appropriate
professional advice. Data collated by Morningstar. For
Odey European Focus Fund € 16.75 - -0.28 0.50 Platinum Maverick Enhanced Fund Limited (Est) $ 93.98 - - 0.00 Strategic Euro Bond Accumulating Class CHFSFr 980.94 - -0.36 0.00 other queries contact reader.enquiries@ft.com +44
Pictet-Global Megatrend Selection-I USD F $ 199.49 - -3.40 0.00 RobecoSAM Gl.Small Cap Eq/N € 142.65 - -3.43 0.00 Veritas Global Equity Income Fund D GBP £ 139.70 - 0.20 4.17
Loomis Sayles High Income R/D (USD) $ 7.20 7.20 -0.03 15.55 (0)207 873 4211.

Odey Atlas Fund GBP I S £ 1.12 - -0.01 0.00 Strategic Euro Bond Institutional Class EUR € 1009.06 - -0.35 0.00
Pictet-Greater China-I USD F $ 388.83 - -3.23 0.00 RobecoSAM Sustainable Gl.Eq/B € 165.10 - -4.49 0.00 Veritas Global Focus Fund D USD $ 24.11 - 0.20 0.65 The fund prices published in this edition along with
Loomis Sayles Multisector Income R/D (GBP) $ 11.27 11.27 -0.02 5.93 additional information are also available on the
Financial Times website, www.ft.com/funds. The
Odey Giano European Fund EUR R € 121.74 - 0.70 0.00 Strategic Euro Bond Fund Accumulating Class Shares € 1131.06 - -0.39 0.00
Pictet-Health-I USD $ 248.72 - -4.10 0.00 RobecoSAM Sustainable Gl.Eq/N € 142.56 - -3.88 0.00 Veritas Global Focus Fund D EUR € 22.27 - 0.24 0.64 funds published on these pages are grouped together by
fund management company.
Odey Naver Fund EUR I € 127.13 - -0.24 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1020.72 - -0.36 1.33
Pictet-High Dividend Sel I EUR F € 143.97 - -4.32 0.00 RobecoSAM S.HealthyLiv/B € 166.14 - -3.71 0.00 Veritas Global Focus Fund D GBP £ 28.51 - 0.30 0.63 Prices are in pence unless otherwise indicated. The
change, if shown, is the change on the previously
Odey Odyssey USD I $ 133.01 - 0.67 0.00 Strategic European Smaller Companies Fund EUR Class € 909.08 - -28.10 - quoted figure (not all funds update prices daily). Those
Pictet-India Index I USD $ 88.67 - -1.74 0.00 RobecoSAM S.HealthyLiv/N € 154.92 - -3.45 0.00 Veritas Global Focus Fund A GBP £ 27.53 - 0.29 0.36
Polar Capital Funds Plc (IRL) designated $ with no prefix refer to US dollars. Yield
percentage figures (in Tuesday to Saturday papers)
Regulated
Odey Orion Fund EUR I € 116.78 - -0.28 0.00 Strategic Global Bond RMB Acc $ 1045.81 - 0.39 0.00 allow for buying expenses. Prices of certain older
Pictet-Indian Equities-I USD F $ 395.21 - -6.82 0.00 RobecoSAM S.HealthyLiv/Na £ 103.44 - -0.60 - Veritas Global Focus Fund A EUR € 12.98 - 0.14 0.36 insurance linked plans might be subject to capital gains
Asian Financials I USD $ 247.70 247.70 -3.65 0.00 tax on sales.
New Capital Fund Management Ltd (IRL) Odey Swan Fund EUR I € 107.09 - 1.63 0.00 Strategic Global Bond USD Acc $ 1048.46 - 1.83 0.00
Leconfield House, Curzon Street, London, W1J 5JB Pictet-Japan Index-I JPY F ¥ 14629.24 - -145.49 0.00 RobecoSAM S.Water/A £ 160.60 - -1.42 1.22 Veritas Global Focus Fund A USD $ 23.27 - 0.20 0.38
Biotechnology I USD $ 15.50 15.50 -0.36 0.00 Guide to pricing of Authorised Investment Funds
FCA Recognised (compiled with the assistance of the IMA. The
Odey European Absolute Return GBP S £ 102.76 - 1.52 0.00 Strategic US Momentum and Value Fund $ 695.69 - -11.35 0.00 Investment Management Association, 65 Kingsway,
New Capital UCITS Funds Pictet-Japanese Equities Opp-I JPY F ¥ 8712.29 - -93.68 0.00 RobecoSAM S.Water/N € 151.12 - -3.83 0.00 Veritas Global Focus Fund C GBP £ 29.89 - 0.31 0.00
European Income Acc EUR € 10.50 10.50 -0.30 0.00 London WC2B 6TD. Tel: +44 (0)20 7831 0898.)
Asia Pac Bd USD Inst Inc $ 90.30 - -0.08 3.27 Strategic US Momentum & Value Fund USD I Class $ 462.22 - -7.53 0.00
Pictet-Japanese Equity Selection-I JPY F ¥ 12919.10 - -131.63 0.00 Veritas Global Focus Fund C EUR € 23.46 - 0.26 0.00 OEIC: Open-Ended Investment Company. Similar to a
European Ex UK Inc EUR Acc € 9.00 9.00 -0.24 - unit trust but using a company rather than a trust
Odey Wealth Management (CI) Ltd (IRL)
Asia Pac Bd USD Ord Inc $ 92.28 - -0.09 2.53 Strategic US Momentum and Value EUR Hedged Class EUR € 485.16 - -7.92 0.00
structure.
www.odey.com/prices Veritas Global Focus Fund C USD $ 25.33 - 0.21 0.00
Pictet-LATAM Index I USD $ 41.90 - -1.43 0.00
FCA Recognised Financial Opps I USD $ 10.75 - -0.31 2.17
Different share classes are issued to reflect a different
Asia Pac Eq EUR Ord Inc € 76.21 - -0.92 3.42 Strategic US Momentum and Value CHF Hedged Class CHFSFr 482.08 - -7.88 0.00 currency, charging structure or type of holder.
Odey Opportunity EUR I € 209.72 - -3.02 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 101.75 - -1.44 0.00 Veritas Global Equity Income Fund A GBP £ 133.85 - 0.18 4.18
GEM Growth I USD $ 7.45 - -0.14 0.00
Asia Pac Eq GBP Ord Inc £ 78.73 - -0.95 3.86 Selling price:Also called bid price. The price at which
Pictet-Pacific Ex Japan Index-I USD F $ 292.47 - -3.79 0.00 Veritas Global Equity Income Fund A EUR € 178.19 - 0.36 4.17 units in a unit trust are sold by investors.
GEM Income I USD $ 8.30 - -0.12 0.00
Schroder Property Managers (Jersey) Ltd The Hartford International Funds (IRL)
Asia Pac Eq USD Ord Inc $ 79.62 - -0.95 3.24 Omnia Fund Ltd Buying price: Also called offer price. The price at
Other International Funds Regulated Veritas Global Equity Income Fund A USD $ 99.31 - -0.07 4.25
Other International Funds Pictet-Premium Brands-I EUR F € 136.31 - -3.66 0.00 which units in a unit trust are bought by investors.
Global Alpha I USD $ 11.58 11.58 -0.24 0.00 Includes manager’s initial charge.
Asia Pac Eq USD Inst Acc $ 85.67 - -1.01 0.00 Indirect Real Estate SIRE £ 134.51 140.66 1.17 2.77 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1682.93 - 21.30 0.00
Estimated NAV $ 833.84 - -21.78 0.00 Veritas Global Equity Income Fund C GBP £ 160.91 - 0.23 -
Pictet-Quality Global Equities I USD $ 125.29 - -2.19 0.00
Global Convertible I USD $ 10.92 10.92 -0.07 0.00 Single price: Based on a mid-market valuation of the
Asia Pac Eq USD Inst Inc $ 88.74 - -1.07 3.97 UK Corporate Bond £ 1580.07 - -4.00 0.00 underlying investments. The buying and selling price
Veritas Global Equity Income Fund C EUR € 214.09 - 0.43 - for shares of an OEIC and units of a single priced unit
Pictet-Russia Index I USD $ 38.65 - -2.53 0.00 trust are the same.
Global Insurance I GBP £ 4.06 - -0.02 0.00 SIA (SIA Funds AG) (LUX)
Dyn Europ Eq EUR Ord Inc € 161.26 - -3.88 1.33 Gilt £ 1603.41 - 0.06 0.00
Regulated
Pictet-Russian Equities-I USD F $ 34.84 - -1.93 0.00 Veritas Global Equity Income Fund C USD $ 118.63 - -0.08 - Treatment of manager’s periodic capital charge:
Global Technology I USD $ 20.89 - -0.59 0.00 The letter C denotes that the trust deducts all or part of
LTIF Classic € 295.08 - -10.19 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.26 - -0.03 0.00
Dyn Europ Eq GBP Ord Inc £ 170.72 - -4.34 1.69 the manager’s/operator’s periodic charge from capital,
Pictet-Security-I USD F $ 183.02 - -3.45 0.00 Veritas Global Real Return Fund A USD $ 20.61 - 0.17 0.29 contact the manager/operator for full details of the
Healthcare Blue Chip Fund I USD Acc $ 9.96 9.96 -0.12 0.00 effect of this course of action.
LTIF Natural Resources € 61.66 - -1.62 0.00 Global Eq (ex Japan) Class HJ4 ¥ 1.31 - -0.03 0.00
Dyn Europ Eq USD Ord Inc $ 160.98 - -3.93 1.25
Pictet-Select-Callisto I EUR € 104.16 - -1.31 0.00 Veritas Global Real Return Fund A GBP £ 11.55 - 0.10 0.32 Exit Charges: The letter E denotes that an exit charge
Optima Fund Management Healthcare Opps I USD $ 34.92 - -0.66 0.00
LTIF Stability A ACCU € 153.63 - -2.17 0.00 Global Eq (ex Japan) Class JP5 ¥ 1.36 - -0.04 0.00 may be made when you sell units, contact the
China Equity EUR Ord Acc € 114.48 - -2.38 0.00 Other International Funds manager/operator for full details.
Pictet-Small Cap Europe-I EUR F € 1043.48 - -34.88 0.00 Veritas Global Real Return Fund A EUR € 12.16 - 0.10 0.12
Income Opportunities B2 I GBP Acc £ 1.66 1.66 -0.01 0.00
Cuttyhunk Fund II Limited $ 1358.76 - -2.04 0.00 Global Eq Ex Japan Index Fund (Hedge) ¥ 1.24 - -0.04 0.00 Time: Some funds give information about the timing of
China Equity GBP Ord Acc £ 119.15 - -2.59 0.00 Retail
Pictet-ST.MoneyMkt-I € 140.45 - 0.00 0.00 price quotes. The time shown alongside the fund
Japan Alpha I JPY ¥ 188.16 188.16 -2.46 0.00 SIA (SIA Funds AG) (CH) manager’s/operator’s name is the valuation point for
JENOP Global Healthcare Fund Ltd $ 15.03 - -0.02 0.00 Other International Fds Gbl Govt Bond (Ex Japan) Index ¥ 1.29 - 0.00 0.00 Veritas Asian Fund B USD $ 200.40 - -1.69 0.00 their unit trusts/OEICs, unless another time is indicated
China Equity USD Ord Acc $ 116.40 - -2.42 0.00
Pictet-ST.MoneyMkt JPY I USD ¥ 101502.73 - 0.28 0.00 by the symbol alongside the individual unit trust/OEIC
Japan I JPY ¥ 1847.16 - -25.52 0.00 LTIF Stability Growth SFr 185.40 - -5.00 - name.
OPTIKA Fund Limited - Cl A $ 100.91 - 0.66 - Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.26 - -0.01 0.00 Veritas Asian Fund B GBP £ 272.15 - -1.33 0.00
China Equity USD Inst Acc $ 119.79 - -2.48 0.00
Pictet-ST.MoneyMkt-ICHF SFr 124.14 - 0.00 0.00 The symbols are as follows: 0001 to 1100 hours; ♦
North American I USD $ 16.22 16.22 -0.38 0.00 LTIF Stability Inc Plus SFr 159.20 - -4.30 0.55 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Optima Fd NAV $ 90.40 - 0.32 0.00 Japan Equity Index Fund ¥ 0.96 - -0.01 0.00 Veritas Asian Fund B EUR € 220.81 - -1.01 0.00
Europ. Equity Fd EUR € 96.10 - -2.31 - midnight. Daily dealing prices are set on the basis of
Pictet-ST.MoneyMkt-IUSD $ 135.34 - 0.01 0.00 the valuation point, a short period of time may elapse
UK Absolute Equity I GBP £ 12.92 12.92 -0.04 0.00 before prices become available.Historic pricing: The
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Japan Equity Class JP3 ¥ 1.16 - -0.01 0.00 Veritas China Fund B GBP £ 131.11 - 0.27 0.00
Europ. Equity Fd GBP £ 94.60 - -2.41 - letter H denotes that the managers/operators will
Pictet-Timber-I USD F $ 127.50 - -2.53 0.00 Standard Life Wealth (JER) normally deal on the price set at the most recent
The Dorset Energy Fd Ltd NAV $ 22.66 - -0.55 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Veritas China Fund B EUR € 163.91 - 1.09 0.00
valuation. The prices shown are the latest available
Europ. Equity Fd USD $ 94.94 - -2.29 - FCA Recognised
before publication and may not be the current dealing
Pictet Total Ret-Agora I EUR € 116.14 - 0.14 0.00 Polar Capital LLP (CYM) levels because of an intervening portfolio revaluation or
Regulated Standard Life Offshore Strategy Fund Limited The National Investor (TNI) a switch to a forward pricing basis. The
Platinum Fd Ltd $ 85.34 - -0.33 0.00 Veritas Global Focus Fund B USD $ 16.80 - 0.14 0.00
Global Val.Cr.Fd GBP Ord Inc £ 107.08 - -0.25 3.63 www.tni.ae managers/operators must deal at a forward price on
Pictet Total Ret-Corto Europe I EUR € 133.87 - -1.31 0.00 ALVA Convertible A USD $ 128.64 - -0.21 0.00 Bridge Fund £ 1.5430 - -0.0159 1.94 Other International Funds request, and may move to forward pricing at any time.
Forward pricing: The letter F denotes that that
Platinum Fd Ltd EUR € 16.55 - -0.08 0.00 Veritas Global Focus Fund B GBP £ 21.03 - 0.22 0.00 managers/operators deal at the price to be set at the
Global Val.Cr.Fd USD Inst Acc $ 120.59 - -0.28 0.00
TNI Blue Chip UAE Fund * AED 8.31 - -0.40 0.00 next valuation.
Pictet Total Ret-Divers Alpha I EUR € 104.95 - -0.11 0.00 European Conviction A EUR € 144.65 - 3.79 0.00 Diversified Assets Fund £ 1.1465 - -0.0087 3.04
Platinum Japan Fd Ltd $ 53.63 - 0.51 0.00 TNI Funds Ltd (BMU) Veritas Global Focus Fund B EUR € 15.46 - 0.17 0.00
Global Val.Cr.Fd GBP Ord Acc £ 173.71 - -0.42 0.00 Investors can be given no definite price in advance of
Pictet Total Ret-Kosmos I EUR € 109.05 - -0.06 0.00 European Forager A EUR € 178.02 - 3.04 0.00 Global Equity Fund £ 1.8062 - -0.0259 0.65 the purchase or sale being carried out. The prices
MENA Hedge Fund $ 938.96 - 33.96 0.00 Veritas Global Equity Income Fund B GBP £ 123.06 - 0.17 4.20 appearing in the newspaper are the most recent
Optima Partners Global Fd $ 14.26 - 0.04 0.00
Global Val.Cr.Fd USD Ord Acc $ 163.10 - -0.37 0.00 provided by the managers/operators. Scheme
Pictet Total Ret-Mandarin I USD $ 110.57 - -0.59 0.00 Global Balanced Fund - Income Units £ 1.3050 - -0.0098 2.11 TNI Funds Plc (Ireland) particulars, prospectus, key features and reports: The
Optima Partners Focus Fund A $ 15.82 - 0.04 0.00 Veritas Global Equity Income Fund B EUR € 163.41 - 0.32 4.19 most recent particulars and documents may be obtained
Global Val.Cr.Fd EUR Ord Acc € 151.70 - -0.35 0.00 Polunin Capital Partners Ltd MENA UCITS Fund * $ 966.47 - -21.64 0.00
free of charge from fund managers/operators. *
Pictet-US Equity Selection-I USD $ 172.25 - -3.72 0.00 Other International Funds Global Balanced Fund - Accumulations Units £ 1.5269 - -0.0114 2.08 Indicates funds which do not price on Fridays.
Veritas Global Equity Income Fund B USD $ 98.40 - -0.07 4.27
Swiss Select Equity Inst Acc SFr 107.62 - -2.23 0.00
Pictet-US High Yield-I USD F $ 140.82 - -0.34 0.00 Emerging Markets Active $ 40.75 - 0.67 - Global Fixed Interest Fund £ 0.9496 - -0.0049 5.19
Charges for this advertising service are based on the
Oryx International Growth Fund Ltd number of lines published and the classification of the
Veritas Global Real Return Fund B USD $ 19.99 - 0.17 0.00 fund. Please contact data@ft.com or call
Swiss Select Equity Ord Acc SFr 106.34 - -2.20 0.00 Other International Funds
Pictet-USA Index-I USD F $ 166.29 - -3.67 0.00 Luxcellence Em Mkts Tech $ 855.55 - -37.19 0.00 Sterling Fixed Interest Fund £ 0.8363 - -0.0018 4.22
+44 (0)20 7873 3132 for further information.
NAV (Fully Diluted) £ 6.93 - 0.36 0.00 Veritas Global Real Return Fund B GBP £ 11.33 - 0.10 0.00
US Growth USD Ord Acc $ 183.68 - -4.56 0.00
Pictet-USD Government Bonds-I F $ 642.89 - 3.00 0.00 Polunin Developing Countries $ 638.66 644.09 -17.56 0.00 UK Equity Fund £ 1.7700 - -0.0169 2.97
Veritas Global Real Return Fund B EUR € 12.99 - 0.11 0.00
US Growth EUR Ord Acc € 175.46 - -4.39 0.00
Polunin Discovery - Frontier Markets $ 1291.69 - -42.86 0.00
OTP Asset Management Romania SAI SA ((ROM)) Pictet-USD Short Mid-Term Bonds-I F $ 129.94 - 0.14 0.00
www.otpfonduri.ro Toscafund Asset Management LLP (UK)
US Growth GBP Ord Acc £ 184.19 - -4.74 0.00 www.toscafund.com
Other International Funds Pictet-USD Sov.ST.Mon.Mkt-I $ 102.68 - 0.01 0.00 Polunin Small Cap $ 1313.63 1330.05 -48.03 0.00
Authorised Funds Veritas Asset Management LLP
OTP Comodisro RON 16.88 - 0.00 - www.veritas-asset.com
US Growth USD Inst Acc $ 169.78 - -4.21 0.00
Pictet-Water-I EUR F € 258.91 - -6.33 0.00 Aptus Global Financials B Acc £ 2.87 - -0.08 4.54 Other International Funds

Wealthy Nat Bd EUR Inst Inc € 103.92 - -0.54 3.83 OTP Obligatiuni RON 14.28 - 0.00 - Private Fund Mgrs (Guernsey) Ltd (GSY)
Aptus Global Financials B Inc £ 2.51 - -0.07 4.55 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00
Regulated

OTP Avantisro RON 7.87 - -0.11 - Stenham Asset Management Inc

Wealthy Nat Bd GBP Inst Inc £ 107.98 - -0.54 3.66 Pimco Fds: Global Investors Series Plc (IRL) Monument Growth 12/01/2016 £ 477.62 483.01 -8.29 1.22 Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00
www.stenhamassetmanagement.com
PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
Other International Funds
Wealthy Nat Bd EUR Ord Inc € 103.27 - -0.53 3.59 OTP Euro Bond € 12.42 - 0.00 - http://gisnav.pimco-funds.com/ Toscafund Asset Management LLP
Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
Dealing: +44 20 3640 1000 www.toscafund.com
Stenham Asia USD $ 129.80 - -0.24 -
PIMCO Funds: +44 (0)20 3640 1407 Prusik Investment Management LLP (IRL) Other International Funds
Wealthy Nat Bd GBP Ord Inc £ 108.64 - -0.54 3.39 OTP Dollar Bond $ 10.57 - 0.00 -
FCA Recognised Enquiries - 0207 493 1331
Regulated Stenham Credit Opportunities A Class USD $ 100.92 - -1.14 0.00 Tosca A USD $ 305.04 - -1.61 0.00
OTP Premium Return RON 1048.67 - -3.55 - Capital Securities Inst Acc $ 14.68 - -0.06 0.00 Waverton Investment Funds Plc (1600)F (IRL)
Wealthy Nat Bd USD Ord Inc $ 105.87 - -0.53 3.37 waverton.investments@citi.com
Prusik Asian Equity Income B Dist $ 141.95 - -0.71 3.84
Stenham Equity UCITS USD $ 129.95 - -6.28 0.00 Tosca Mid Cap GBP £ 245.63 - -7.49 0.00 FCA Recognised
New Capital Alternative Strategies Commodity Real Return Fund Inst Acc $ 5.31 - -0.09 0.00
Prusik Asia A $ 175.15 - -2.55 0.00 Waverton Asia Pacific A USD $ 15.49 - -0.23 5.23
All Weather Fd USD Cls $ 117.83 - -0.64 0.00 Stenham Growth USD $ 215.45 - 0.55 - Tosca Opportunity B USD $ 334.27 - -12.71 0.00
Credit Absolute Return Fund Inst Acc $ 10.85 - -0.04 0.00
Prusik Asian Smaller Cos A $ 126.90 - -1.41 0.00 Waverton Global Bond Fund Cls A $ 8.63 - -0.04 5.42
All Weather Fd EUR Cls € 105.67 - -0.67 0.00 Stenham Healthcare USD $ 183.27 - 2.63 0.00 Pegasus Fund Ltd A-1 GBP £ 55.41 - 0.42 0.00
Diversified Income - Inst Acc $ 18.79 - -0.06 0.00

Stenham Managed Fund USD $ 114.16 - 0.50 - Waverton Global Equity Fund A GBP £ 12.89 - -0.17 0.58
All Weather Fd GBP Cls £ 113.91 - -0.67 0.00
Diversified Income Durat Hdg Fund Inst Acc $ 10.85 - -0.08 0.00 Purisima Investment Fds (CI) Ltd (JER)
Permal Investment Mgmt Svcs Ltd Regulated Waverton UK Fund A GBP £ 12.28 - -0.11 1.85
Tactical Opps USD Cls $ 122.83 - -12.66 0.00 Stenham Macro UCITS USD $ 101.71 - 0.22 -
www.permal.com Emerging Asia Bond Fund Inst Acc $ 9.25 - -0.05 0.00
PCG B 153.81 - 1.54 0.00
Other International Funds Waverton Equity Fund A GBP £ 13.80 - -0.13 0.19
Tactical Opps EUR Cls € 102.72 - -10.56 0.00 Stenham Multi Strategy USD $ 116.28 - 0.06 -
Offshore Fund Class A US $ Shares Emerging Local Bond - Inst Acc $ 10.16 - -0.09 0.00
PCG C 151.64 - 1.51 0.00
Investment Holdings N.V. $ 5417.00 - -70.68 0.00 Stenham Quadrant USD A $ 401.53 - 7.27 - Waverton Sterling Bond Fund A GBP £ 9.41 - -0.03 5.31
Tactical Opps GBP Cls £ 115.38 - -12.11 0.00
Emerging Markets Bond - Inst Acc $ 36.03 - -0.30 0.00

Macro Holdings Ltd $ 4176.78 - -15.24 0.00 Stenham Trading Inc USD $ 116.19 - 1.90 -
Emerging Markets Corp.Bd Fund Inst Acc F $ 12.26 - -0.07 0.00 Putnam Investments (Ireland) Ltd (IRL)
Regulated WA Fixed Income Fund Plc (IRL)
Fixed Income Holdings N.V. $ 349.32 - -14.81 - Stenham Universal USD $ 431.45 - -0.38 - TreeTop Asset Management S.A. (LUX) Regulated
Emerging Markets Short-Term Local Currency Fund $ 11.24 - -0.08 0.00 Putnam New Flag Euro High Yield Plc - E € 979.51 - -3.39 4.30 Regulated
European Multi-Sector € 115.54 - -0.26 0.00
Permal Absolute Return Fund $ 163.19 - -0.40 0.00 Stenham Universal II USD $ 159.84 - -0.20 0.00 TreeTop Convertible Sicav
Euro Bond - Inst Acc € 22.63 - 0.00 0.00
International A € 278.69 - -4.41 0.00

Euro Credit - Inst Acc € 14.65 - 0.00 0.00

Northwest Investment Management (HK) Ltd Stratton Street Capital (CI) Limited (GSY) International B $ 357.77 - -5.27 0.00
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Regulated
Other International Funds Euro Income Bond - Inst Acc F € 12.75 - -0.03 0.00
Japan Synthetic Warrant Yen Class ¥ 1782.40 - 9.56 0.00 International C £ 121.10 - -1.69 0.00
Northwest $ class $ 2329.36 - -28.58 0.00
Euro Long Average Duration - Inst Acc € 21.77 - 0.12 0.00
Robeco Asset Management (LUX) Japan Synthetic Warrant GBP Hedged Class £ 197.20 - -2.68 0.00 International D € 258.72 - -4.03 3.04
Northwest Warrant $ class $ 1969.35 - -444.40 0.00 Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Yuki International Limited (IRL)
Pictet Asset Management (Europe) SA (LUX) Euro Low Duration Fund Inst Acc € 11.21 - -0.01 0.00 TreeTop Global Sicav Tel +44-20-7269-0207 www.yukifunds.com
www.robeco.com/contact
15, Avenue J.F. Kennedy L-1855 Luxembourg Japan Synthetic Warrant USD Class $ 19.22 - 0.47 0.00 Regulated
FCA Recognised
Tel: 0041 58 323 3000 Global Opp.A € 126.50 - -2.97 0.00
Euro Real Return - Inst Acc € 13.31 - -0.01 0.00 Yuki Mizuho Umbrella Fund
FCA Recognised Asia-Pacific Equities (EUR) € 118.72 - -2.56 0.00 Japan Synthetic Warrant USD Hedged Class $ 196.54 - -2.43 0.00
Global Opp.B $ 124.24 - -2.68 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6117.00 - -128.00 0.00
Pictet-Absl Rtn Fix Inc-HI EUR € 106.40 - 0.05 0.00 Euro Short-Term Inst Acc € 12.22 - -0.01 0.00
Chinese Equities (EUR) € 63.26 - -2.58 0.00 Renminbi Bond Fund AUD Cls A A$ 112.41 - -0.50 3.93
Global Opp.C £ 165.88 - -2.63 0.00 Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Pictet-Absl Rtn Glo Div-I EUR F € 121.95 - -0.53 0.00 Euro Ultra Long Duration - Inst Acc € 28.87 - 0.14 0.00
Em Stars Equities (EUR) € 148.86 - -3.20 0.00 Renminbi Bond Fund AUD Cls B A$ 114.28 - -0.51 3.67
Sequoia Equity A € 128.58 - -3.08 0.00 Yuki Japan Low Price ¥ 23606.00 - -866.00 0.00
Pictet-Agriculture-I EUR F € 169.00 - -3.28 0.00 Global Advantage - Inst Acc $ 11.81 - 0.00 0.00
Oasis Crescent Management Company Ltd Emerging Markets Equities (EUR) € 123.68 - -3.73 0.00 Renminbi Bond Fund CHF Cls A SFr 108.99 - -0.53 4.01
Other International Funds Yuki Japan Value Select ¥ 11138.00 - -255.00 0.00
Sequoia Equity B $ 130.32 - -2.96 0.00
Pictet-Asian Equities Ex Japan-I USD F $ 179.92 - -1.49 0.00 Global Advantage Real Return Fund Inst Acc $ 8.13 - -0.03 0.00
Oasis Crescent Equity Fund R 9.02 - -0.08 0.00 Flex-o-Rente (EUR) € 110.22 - 0.17 0.00 Renminbi Bond Fund CHF Cls B SFr 108.98 - -0.53 3.76 YMR Umbrella Fund
Sequoia Equity C £ 156.13 - -2.60 0.00
Pictet-Asian Local Currency Debt-I USD F $ 149.49 - 0.48 0.00 Global Bond - Inst Acc $ 27.84 - 0.01 0.00
Glob.Consumer Trends Equities (EUR) € 141.06 - -4.57 0.00 Renminbi Bond Fund CNH Cls A CNH 121.06 - 0.31 3.36 YMR N Growth ¥ 16616.00 - -58.00 0.00

Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pictet-Biotech-I USD F $ 702.47 - -17.88 0.00 Global Bond Ex-US - Inst Acc $ 19.54 - 0.01 0.00 Yuki Asia Umbrella Fund
Regulated High Yield Bonds (EUR) € 118.58 - -1.19 0.00 Renminbi Bond Fund CNH Cls B CNH 121.01 - 0.32 3.13 Unicapital Investments (LUX)
Oasis Global Investment (Ireland) Plc Regulated Yuki Japan Rebounding Growth Fund JPY Class ¥ 21102.00 - -446.00 0.00
Pictet-Brazil Index I USD $ 29.87 - -1.08 0.00 Global High Yield Bond - Inst Acc $ 19.18 - -0.16 0.00
Lux -O- Rente (EUR) € 142.92 - 0.66 0.00 Renminbi Bond Fund Euro Cls B € 110.79 - -0.54 3.76
Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.86 Investments III € 5.03 - -22.38 -
Yuki Japan Rebounding Growth Fund USD Hedged Class $ 835.72 - -17.90 -
Pictet-CHF Bonds I CHF SFr 508.23 - 1.75 0.00 Global Investment Grade Credit - Inst Income $ 11.96 - 0.00 3.84
New World Financials (EUR) € 46.36 - -1.80 0.00 Renminbi Bond Fund GBP Cls B £ 112.69 - -0.53 3.53
Oasis Global Equity $ 25.04 - -0.49 0.23 Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
Pictet-China Index I USD $ 90.01 - -2.17 0.00 Global Investment Grade Credit Fund Inst Acc € € 11.59 - -0.10 0.00
Oasis Crescent Global Investment Fund (Ireland) plc US Premium Equities (EUR) € 163.15 - -3.29 0.00 Renminbi Bond Fund SGD Cls B S$ 112.24 - -0.51 3.48 Zadig Gestion (Memnon Fund) (LUX)
Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
Global Investment Grade Credit Fund Inst Acc $ $ 16.52 - -0.01 0.00 FCA Recognised
Pictet-Clean Energy-I USD F $ 68.60 - -1.41 0.00
Oasis Crescent Global Equity Fund $ 25.51 - -0.49 0.00
US Premium Equities (USD) $ 182.36 - -3.71 0.00 Renminbi Bond Fund USD Cls B $ 112.44 - -0.53 3.29
Memnon European Fund I GBP £ 109.42 - -1.07 0.00
Pictet-Digital Communication-I USD F $ 235.39 - -5.11 0.00 Global Multi-Asset - Inst Acc $ 13.40 - -0.21 0.00
Oasis Crescent Variable Balanced Fund £ 10.09 - -0.06 0.59
Renminbi Bond Fund YEN Cls B ¥ 12759.01 - -59.48 0.00
Value Partners Hong Kong Limited (IRL)
www.valuepartners.net, fis@vp.com.hk
Pictet-Eastern Europe-I EUR F € 233.48 - -9.52 0.00 Global Real Return - Inst Acc $ 17.82 - -0.01 0.00 Regulated
OasisCresGl Income Class A $ 10.61 - -0.04 2.42
Renminbi Bond Fund USD Cls A $ 154.75 - -0.72 3.53
Zebedee Capital Partners LLP (CYM)
Value Partners Asia ex-Japan Equity Fund $ 7.84 - -0.13 - Regulated
Pictet-Em Lcl Ccy Dbt-I USD F $ 147.44 - -0.84 0.00 Income Fund Inst Acc $ 12.20 - -0.05 0.00
OasisCresGl LowBal D ($) Dist $ 11.02 - -0.13 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Renminbi Bond Fund GBP Cls A £ 149.93 - -0.70 3.78
Value Partners Classic Equity Fund USD Z Unhedged $ 9.68 - -0.10 0.00
Pictet-Emerging Markets-I USD F $ 401.47 - -5.98 0.00 Inflation Strategy Fund Inst Acc $ 8.28 - -0.08 0.00
OasisCresGl Med Eq Bal A ($) Dist $ 11.12 - -0.16 0.33 Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Renminbi Bond Fund SGD Cls A S$ 148.41 - -0.67 3.73
Low Average Duration - Inst Acc $ 14.75 - -0.02 0.00
S W Mitchell Capital LLP (CYM) Value Partners Classic Equity Fund CHF HedgedSFr 10.11 - -0.11 0.00
Pictet-Emerging Markets Index-I USD F $ 184.31 - -3.65 0.00
Oasis Crescent Gbl Property Eqty $ 8.83 - -0.14 2.07 Regulated Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Renminbi Bond Fund YEN Cls A ¥ 18896.05 - -88.31 0.00
Value Partners Classic Equity Fund EUR Hedged € 10.23 - -0.11 0.00
Pictet-Emerging Corporate Bonds I USD $ 104.36 - -0.31 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 6.89 - -0.25 0.00 S W Mitchell European Fund Class A EUR € 328.95 - -9.46 -
Renminbi Bond Fund EUR Cls A € 101.70 - -0.50 4.00
Value Partners Classic Equity Fund GBP Hedged £ 10.46 - -0.11 0.00
Pictet-Emerging Markets High Dividend I USD $ 79.47 - -1.30 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.61 - -0.25 0.00 S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 -
Data Provided by
Value Partners Classic Equity Fund GBP Unhedged £ 11.71 - -0.05 0.00
Pictet-Emerging Markets Sust Eq I USD $ 73.90 - -1.09 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 11.04 - -0.29 0.00 The Charlemagne Fund EUR € 315.89 - -12.01 -

Value Partners Classic Equity USD Hedged $ 11.90 - -0.13 0.00

Pictet-Environmental Megatrend Sel I EUR € 146.10 - -4.30 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.11 - -0.09 0.00

Odey Asset Management LLP (CYM) S W Mitchell Capital LLP (IRL)

Value Partners Greater China Equity Fund $ 7.54 - -0.08 -
Regulated Pictet-EUR Bonds-I F € 556.17 - 1.14 0.00 StocksPLUS{TM} - Inst Acc $ 21.13 - -0.49 0.00 Regulated

OEI Mac Inc GBP A £ 358.19 - -15.28 0.00 SWMC European Fund B EUR € 13844.74 - -362.78 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.16 - -0.13 -
Pictet-EUR Corporate Bonds Ex Fin i EUR € 141.79 - 0.07 0.00 Total Return Bond - Inst Acc $ 27.09 - 0.01 0.00 E.I. Sturdza Strategic Management Limited (GSY)

OEI Mac Inc GBP B £ 201.79 - -3.13 0.00 SWMC UK Fund B £ 11236.27 - -186.78 0.00
Regulated
Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.58 - -0.11 -
www.morningstar.co.uk
Pictet-EUR Corporate Bonds-I F € 198.12 - 0.02 0.00 UK Corporate Bond - Inst Acc £ 17.30 - 0.04 0.00 Nippon Growth Fund Limited ¥ 92108.00 - -2959.00 0.00
Data as shown is for information purposes only. No
SWMC Small Cap European Fund B EUR € 12812.19 - -205.46 0.00 offer is made by Morningstar or this publication.
OEI MAC Inc USD $ 1914.43 - -79.92 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 8.56 - -0.12 -
Pictet-EUR Government Bonds I EUR € 158.74 - 0.40 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.26 - 0.08 0.00 Strat Evarich Japan Fd Ltd JPY ¥ 83242.00 - -7205.00 0.00
24 ★ FINANCIAL TIMES Tuesday 19 January 2016

MARKETS & INVESTING

INSIGHT Commodities

Scott
Minerd Salmon leaps past shrimp in fish scales
Health benefits lift marine Seafood is the highest traded food prices hitting a record high in 2014. In
20% Expectations of steady demand
commodity by value, and shrimp has 2015, output recovered for the first time growth have attracted new entrants into
products to highest traded been the most traded species for dec- in three years, pushing prices down by Proportion of all the fish farming sector. Mitsubishi of
seafood trade in
Cooler heads will food commodity by value ades. However, production and price
volatility due to disease has reduced its
share in international trade. Growing
15 to 20 per cent.
The salmon trade has been buoyed by
rising demand in the US and Europe and
2015 expected to be
accounted
for by salmon
Japan bought Norwegian salmon pro-
ducer Cermaq for $1.4bn in 2014, while
last year Cargill, the US commodities
prevail in times of EMIKO TERAZONO
Salmon has overtaken shrimp as the
demand in the producers’ own domestic
markets has also led to lower exports,
higher prices, especially for the fish pro-
duced in Norway, the top producer and $1.4 bn
trader, acquired EWOS, the Norwegian
fish-feed company, for $1.5bn.

volatility and panic most popularly traded fish as new prod-

ucts have helped open up fresh markets.
In 2013, for the first time salmon
accounted for more trade than shrimp,
claiming 17 per cent of the total traded
according to the FAO.
“Salmon is very versatile — it can be
canned, smoked and processed in other
ways. Shrimp has more issues in pro-
duction volatility,” said Audun Lem, a
exporter. In contrast, Chile, the second
leading grower, has been facing falling
prices and higher production costs.
The demand for the oily fish has led to
the development of genetically modi-
Price paid by
Mitsubishi of Japan
for Norwegian
World fish consumption per person
between 2011 and 2015 has risen from
18.7kg to 20kg, according to the FAO.
salmon producer Although the international trade for
Cermaq in 2014 seafood declined in value to about

M
arkets in the first weeks of 2016 were unex-
pectedly violent. After one of the worst
starts for equities on record, I remain pessi-
mistic that things will meaningfully
improve soon.
One of the most disturbing aspects of the global sell-off
in equities and commodities is the virtual lack of panic or
fear. Despite a period of relentless selling in US equities,
market volume has failed to increase and measures of fear,
such as the CBOE Volatility Index (Vix), have been at lev-
els associated with calm.
Panic is a key indicator of a market bottom. Panic is
associated with sharp increases in trading volumes as
investors fearing further decline seek to liquidate posi-
tions. That kind of selling causes volatility to spike, as price
movements accelerate to the downside. None of this has
been associated with the decline to the start of 2016, which
tells me we have more downside before we see bottom.
A number of analysts are currently painting a bleak pic-
ture for the global economy. Candidly, I don’t see it.
Despite the Federal Reserve’s recent actions, monetary
conditions remain highly supportive for global economic
growth. In the US, the index of leading economic indicators
shows no warning signs of recession.
Many analysts point to widening credit spreads and fall-
ing equities as foreshadowing a recession. I remind folks
that we had a similar scenario after the market crash of
October 1987, and the US recession was still two years
away. For those of us who remember, that time became a
great buying opportunity. I could say the same for 1994
and 1998.
Meanwhile, the persistent weakness in oil continues to
exert its negative influence on all markets, especially cor-
porate credit. Oil prices probably have further to fall:
not until it reaches approximately $25 per barrel will we
begin to see oil production
shuttered, which should then
set the stage to stabilise the
Those who are
energy sector. prepared will
Additionally, if market tur-
moil continues as I expect it
find exceptional
will, and lower oil prices opportunities
damp headline inflation, the
for investment
Fed is likely to delay further
rate increases. Given strong
employment growth and continued wage growth, along
with a stimulative fiscal policy now in place, the US econ-
omy is likely to thrive in 2016.
What about China? The Chinese have locked themselves
in a vice. The currency needs to depreciate to help keep
their economy competitive with other nations — such as
Japan and South Korea — that have allowed their curren-
cies to depreciate.
As it becomes apparent that the renminbi will depreci-
ate, pressure mounts on capital flows out of China. This
causes asset liquidation, which drives their stock market
lower as investors attempt to avoid the losses associated
with currency devaluation.
Somehow, the world had become convinced that the
Chinese would be able to maintain the value of their cur-
rency despite competitive pressures from its neighbouring
nations.
Once again, investors are learning that market forces
will win in the end. While the renminbi could be propped
up for a time, imbalances ultimately build to extremes that
overwhelm artificial prices.
When the dam finally breaks, market moves are violent.
This is what we are seeing in China. Chinese stocks are
down 20 per cent from recent highs, but there is more pain
to come. Markets do not move in straight lines; any pause
in the sell-off should not be viewed as a trend reversal.
The good news is that I do not believe the volatility in
Chinese equity markets will have any meaningful impact
on the US economy. In the short run, however, selling pres-
sures in China will continue to spill over into other equity
markets including the US. This is the product of global cap-
ital flows. Eventually, the capital leaving China must find a
new home. The US and Europe will eventually benefit.
As I look at the markets so far this year, I am reminded
that “cooler heads will prevail”.
While the market will remain volatile and likely lead to a
period of outright panic, that is when having a “cool head”
will pay off. Those who are prepared will find exceptional
opportunities for investment.
Scott Minerd is global chief investment officer and chairman of
investments at Guggenheim Partners
value of seafood, while shrimp had a 15
per cent share, according to new figures
from the UN Food and Agricultural
Organization.
The trend is expected to have contin-
ued, with salmon accounting for about a
fifth of all seafood trade in 2015 and
shrimp 16 per cent, according to early
FAO estimates.
China spurs volatile offshore renminbi trade
Authorities seek to close the
gap between onshore rate
and those available outside
JENNIFER HUGHES — HONG KONG
BEN BLAND — TAIPEI
Traders often compare speculation with
a balloon; squeeze one part and the air
just bulges out elsewhere. The analogy is
proving increasingly popular in Hong
Kong and other offshore renminbi cen-
tres as investors face the effects of
China’s efforts to suppress renminbi
speculation.
Bulges so far have been spotted in a
sudden weakening of the Hong Kong
dollar as well in corners of the ren-
minbi’s offshore markets from Taipei to
Singapore as intervention by China,
direct and indirect, has drained liquid-
ity and created arbitrage opportunities.
The authorities’ aim has been to close
the awkward “one currency, two rates”
gap between the tightly controlled
onshore rate and that available off-
shore, which had been weakening at a
faster pace. The divergence between the
two rates implies investors outside
China were increasingly betting on fur-
ther weakening — a gamble that had real
onshore repercussions if it spurred fur-
ther capital flight.
Yesterday the People’s Bank of China
opened another front, announcing that
banks offshore must for the first time
hold renminbi reserves. The move will
suck yet more so-called CNH — the cur-
rency code for the offshore renminbi —
out of circulation in a market that until
recently had been steadily growing,
reflecting China’s efforts to internation-
alise its currency.
The rule is the latest step in a series
that have begun to prompt questions
about the future of the offshore market
that is at the forefront of China’s efforts
to internationalise its currency.
“The new measure [the reserve
requirement] may mark the beginning
of a process to reduce the regulatory
gaps between the markets, which may
have negative impacts on the develop-
ment of the offshore market,” says Xian-
grong Yu at CICC. “As the PBoC begins to
face the challenges imposed by the off-
shore market, the role played by this
market in future renminbi internation-
alisation might be lessened.”
The PBoC’s actions are tightening a
market that, materials, financials and
technology while representing the van-
guard of the renminbi’s internationali-
sation, was not very large to start with.
seafood official at the FAO. fied salmon. US regulators have licensed $130bn in 2015 from $144bn the year
Over the past few years the interna- the production and consumption of the before, volumes are expected to remain
tional trade in shrimp and prawns has controversial product, although it is stable or slightly increase, the organisa-
been affected by disease, which has hit unlikely leading retailers will stock the tion said.
the industry in Thailand, one of the fish once it is available. Nevertheless, the industry is likely to
leading producers and exporters. The changes in seafood trade come as feel the impact of slowing or negative
Production had been falling in the demand has been supported by more growth in new markets including Rus-
Asian producer since 2012 due to the so- consumers appreciating the health ben- sia, Brazil and China, which supported
called early mortality syndrome, with efits of eating fish regularly. demand over the past few years.
Analysis. Currencies
Offshore renminbi deposits
Rmb bn
1500
Korea
Singapore
Taiwan
Hong Kong 1000
500
0
2004 06 08 10 12 14 15
Offshore-onshore
renminbi spread
0.15
0.10
0.05
0
-0.05
Aug 2015 Jan
2016
Sources: Thomson Reuters; HSBC
The People’s CNH deposits held in the main off- banks last week offered retail customers city could be forced to reset its peg,
Bank of China shore centres of Hong Kong, Taipei, Sin- one-off promotional interest rates to although no analysts yet believed the
yesterday gapore and Seoul totalled Rmb1.4tn attract deposits. Singapore banks also 33-year-old regime was under serious
announced that ($210bn) towards the end of last year. appeared to have raised their rates. pressure.
banks offshore Broad measures of money supply — M2 Cathay United Bank, for example, last Few also believe — yet — that the PBoC
must for the — on the mainland put the money in cir- week was offering up to 5.3 per cent intends for now to do much more than
first time hold culation there at Rmb139tn ($21tn). annual interest on three-month time scare off offshore renminbi speculators.
renminbi There are no data for how much ren- deposits of more than Rmb20,000, com- “The future of the CNH market is a
reserves — Reuters minbi is traded offshore. A paper by the pared with its normal rate of 1.6 per legitimate concern, but it has huge real
Bank for International Settlements cent, in a special deal that a teller said economic flows, with a big chunk of
using 2013 data reported about $13bn in might end at any time. trade settled through CNH,” says one
the daily spot market. Onshore — “Beijing’s squeeze on the short-sellers investor. “The CNH market is like
known as the CNY market — average in Hong Kong is leading to a shortage of shadow banking on the mainland — you
trading in dollar-renminbi has reached liquidity,” says Cheng Cheng-mount, can’t just shut it down without real
$26bn a day this year. president of AgriBank, another Taiwan- consequences.”
“Its been a little tail wagging an enor- ese lender. “Some Taiwanese banks are Meanwhile, renminbi speculation
mous dog,” says Mansoor Mohi-uddin, paying up for . . . deposits and then appears to have moved to the forwards
strategist at RBS of the offshore market. lending to Hong Kong banks for a markets. Traders report growing inter-
“I don’t think developing the CNH mar- profit.” est in the contracts for future delivery,
ket at this stage is China’s priority — The Hong Kong dollar, meanwhile, with renminbi for delivery in 12 months
keeping CNY from massive volatility is slipped to its weakest level in four years quoted at Rmb6.9 — a weaker rate than
their number one focus.” — albeit within the trading band allowed yesterday’s Rmb6.589 offshore spot
The PBoC’s actions have not, however, under its dollar peg. rate. The balloon squeezing goes on.
stopped volatility and speculation bulg- The fall came amid speculation that if Additional reporting by Gloria Cheung in
ing out in unexpected areas. Taiwanese China faced economic problems, the Taipei and Jeevan Vasagar in Singapore

Equities Equities

Liquidnet Europe enjoys record trading year
PHILIP STAFFORD
Trading at Liquidnet Europe, the block
trading venue, hit a record last year as
local fund managers embraced making
deals away from incumbent exchanges
and rivals were hit by regulatory fines.
The venue, where many of the market’s
largest equity trades are executed, saw
asset managers undertake transactions
worth more than $133.23bn last year, a
rise of 9.9 per cent on 2014. It also set
daily, weekly, monthly and quarterly
records in October, the US-based com-
pany said.
The growth came in spite of a lacklus-
tre performance by the region’s equity
markets. While French and German
markets registered gains, the UK’s blue-
chip index fell and the benchmark
Europe-wide Euro Stoxx 600 lost 0.5 per
cent. Eight years after the market was
opened up, European investors are
becoming accustomed to trading away
from former monopoly exchanges.
About 7-8 per cent of the total book
value of trades in Europe are executed
in “dark pools”, according to ITG
Europe, a dark pool operator. Bats
Chi-X Europe, the pan-European
exchange, increased its market share to
24 per cent from 21 per cent in 2014,
driven by gains in Spain and Germany.
Liquidnet’s venue matches trades in
private, with prices only revealed after a
deal is completed. It allows asset manag-
ers and pension funds to execute large
block trades away from exchanges,
helping avoid the risk of prices moving
against the seller or the buyer. However,
they have been controversial because
regulators are concerned they cannot
see a full picture of equities trading.
To that end, US regulators have fined
companies such as ITG, Barclays and
UBS for oversight failures. The publicity
has raised asset managers’ awareness
that trading games may be being played
at their expense, said Mark Pumfrey,
head of Europe, Middle East and Africa
at Liquidnet Europe.
“The dark pool fines in the
US . . . tend to affect the volumes for a
period of time.” he said. “Bank trading
desks are becoming leaner. People are
asking ‘how do you do your job more
efficiently, how do you source liquidity
more efficiently?’ The market is chang-
ing and asset managers are getting used
to it.”
Liquidnet said October was its best
month, setting a record day of $1.12bn
principal traded on October 15; a record
week of $4.08bn and a record month of
$15.9bn, which beat the previous record
month by 28 per cent.
S&P credit downgrade sparks Poland sell-off
ELAINE MOORE AND ROGER BLITZ
Poland’s surprise credit downgrade has
resulted in a sell-off across the coun-
try’s equities, bonds and currency mar-
kets as foreign investors grow increas-
ingly sceptical of the new populist
rightwing government.
Rating agency Standard & Poor’s sur-
prised European markets on Friday
by cutting Poland’s credit rating one
notch from A- to BBB+ and assigning a
negative outlook, after interference in
legal and economic governance by
Poland’s newly installed Law and Justice
administration.
Prices for bonds issued by Poland
dropped sharply yesterday, pushing
yields on the country’s benchmark 10-
year bond up 28 basis points to 3.28 per
cent, near a six-month high. The War-
saw WIG 20 stock index fell 2.8 per cent.
“No one saw this coming,” said Mano-
lis Davradakis, economist at Axa. “This
is all about the institutions. The coun-
try’s economic situation is still positive
and does not warrant this downgrade.”
Before last year’s election, Poland was
regarded as one of the most stable coun-
tries in eastern Europe and currency
strategists assumed the strong economy
and projected gross domestic product
growth would push the zloty higher.
Instead, political ructions and the rat-
ings downgrade have helped push the
euro 4.6 per cent higher against the
Polish currency over the past month.
The zloty hit a four-year low against the
single currency at the end of last week.
Emerging markets strategist Piotr
Matys at Rabobank said politics would
continue to set the tone for the currency
and local assets. Even when demand for
risky assets picks up, “scope for the
zloty to recover its losses is likely to be
far more constrained than we previ-
ously anticipated”, said Mr Matys.
Fixed income investors had also long
seen Poland as a relative haven during a
period in which EMs suffered big losses,
and are now rethinking their exposure.
Last April, Poland was able to trans-
late impressive economic growth and
proximity to the eurozone’s quantitative
easing programme to become the first
developing country to sell debt at a nega-
tive yield, borrowing in Swiss francs over
three years without paying a coupon.
Oxford Economics noted that, even
after elections in late 2015, markets still
did not price in full implementation of
the new government’s spending prom-
ises, betting on moderation. The gov-
ernment’s intentions have been taken
more seriously since.
See Lex
Tuesday 19 January 2016 ★ FINANCIAL TIMES 25

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Change on day
Jamie
Chisholm
European and Asian stocks slip as 12pt semibold FTSE 100 index
for 1,2,3
9.6pt regular Change on day 0.42%

oil prices reach multiyear lows

US investors had a long weekend
to contemplate the damage done to
their equity portfolios.
The S&P 500 closed last week at
a 12-month low, having lost 8 per
cent already in 2016. The Wall Street
benchmark is now 11.8 per cent
below last May’s record closing high
(technically speaking in a “correction”).
What do other technical factors tell
us about the S&P? Worryingly for bulls,
as Scott Minerd notes in the Insight
column on these pages, there is little
evidence of any fearful capitulation
that may signal a market bottom.
Stress gauges such as the Vix are
elevated but not to the extent that
often suggests a crescendo of angst.
It was noticeable that Friday’s
2.2 per cent slide for the S&P left it up
from where futures had suggested the
cash market would start trading. The
drop to morning lows attracted buyers.
It meant the benchmark ended at
the top of the 1,860-1,880 range that it
has already bounced off twice in the
past six months.
Chartists will doubtless feel that a
significant drop through that support
level could beget more selling.
The S&P’s 50-day moving average
on January 8 fell below its 200-day
MA, creating a so-called “death cross”.
Yet even with the subsequent declines,
the S&P’s 14-day relative strength
index is 31.3, yet to fall through the
“oversold” threshold of 30.
Still, the very low proportion of
S&P constituents below their 50-day
MA — about 15 per cent — has often
signalled a short-term bottom, says
Strategas Research.
jamie.chisholm@ft.com
S&P 500 index
2200
2100
2000
1900
1800
Jul 2015 Jan
2016
Source: Haver Analytics
Outlook for China sparks
unease and Brent falls to
$27.67 a barrel amid
expectations of extra
crude supplies from Iran
DAVE SHELLOCK
European and Asian stock markets
began the week on the back foot as oil
prices touched multiyear lows and par-
ticipants continued to fret about the
outlook for China.
Overall trading activity was light
because of the closure of US markets for
the Martin Luther King Jr holiday.
The pan-European Euro Stoxx index
ended a choppy session with a loss of 0.4
per cent. The FTSE 100 in London fell
by the same amount and Frankfurt’s
Xetra Dax shed 0.3 per cent.
In Asia, the Nikkei 225 fell 1.1 per
cent and the Hang Seng in Hong
Kong retreated 1.5 per cent, even as
the Shanghai Composite edged 0.5 per
cent higher.
Oil remained the key driver of stock
prices, as the lifting of trade sanctions
on Iran fuelled fresh concerns about
oversupply in the oil markets.
“Every additional barrel of oil that
Iran pumps is one more than what the
world currently needs,” said Alberto
Gallo, head of global macro credit
research at RBS.
“As non-Opec countries only
marginally cut production and Opec
member states increasingly squabble
over production targets, Iran’s re-
emergence could exacerbate the sup-
ply-demand imbalance.”
Kevin Norrish, head of commodities
research at Barclays, noted that over-
supply concerns were being com-
pounded by preliminary data suggest-
ing demand was also weakening.
“US oil demand indicators have
started the year looking spectacularly
Novo Banco — a tale of three bonds: FT.com/video
Portugal’s decision to impose heavy losses on €2bn of senior
bonds at Novo Banco has sparked anger from their owners
weak,” he said. “We have to caveat that
there are only seven days of EIA [Energy
Information Administration] data to
work with, and that the weekly stats
often get hugely revised.
“Nevertheless, in early 2016, it looks
as if US demand for refined products is
running at around 800,000 barrels per
day — 4.4 per cent below last year’s aver-
age for the whole of January.
“That represents a stunning turn-
round from December when US oil
demand was expanding by almost the
same amount as it has fallen this year
so far.”
Mr Norrish acknowledged that part
of that decline was because of the
warmer weather.
Thomas Meyer/Bloomberg
“Nevertheless, the magnitude of the
decline in distillate use is so great that it
raises concerns about deeper-seated
demand weakness. On top of that, gaso-
line demand also appears to have
started the year very soft.”
Brent crude fell as low as $27.67 a bar-
rel, the cheapest since late 2003, before
partially recovering to $28.74, still down
0.7 per cent on the day. US West Texas
Intermediate touched $28.36 and was
last quoted at $29.03, down 1.3 per cent.
Ole Hansen, head of commodities
strategy at Saxo Bank, noted speculative
short bets on Nymex WTI crude jumped
14 per cent as of last Tuesday.
“Adding the short positions from ICE
WTI and Brent crude the total gross
6400
6200
6000
5800
5600
Dec 2015 2016 Jan
short is likely to have exceeded 400m UK equities The FTSE 100 recorded
barrels,” he said. its lowest close in three years as losses
“The near-term outlook remains for financial and mining stocks left
weak but having fallen by almost one- the index down 7 per cent since the
quarter this year, and by almost 40 start of 2016
per cent since the December 4 Opec
meeting, some consolidation is now Eurofirst 300 index
expected. Change on day 0.29%
“With this kind of overhang in short 1450
positions, the market could easily 1400
bounce $5 to $6 per barrel.” 1350
The renewed weakness for oil prices 1300
helped drive the Russian rouble to
1250
within sight of a record low against Dec 2015 2016 Jan
the dollar.
Meanwhile, China remained in focus European equities Banking stocks
after the country’s central bank fell heavily amid concerns over bad
took further measures to curb capital debt in the sector, although the
outflows by introducing reserve Eurofirst 300 index ended well off
requirements for offshore banks’ ren- its lowest level of the session
minbi holdings.
“It appears that the Chinese authori- Nikkei 225 index
ties want to dampen the speculative
(’000) Change on day 1.12%
flows that bet on a fast depreciation of 19.0
its currency,” said Zhou Hao, analyst at
Commerzbank. 18.0
“Last Friday, Chinese premier Li 17.0
Keqiang said that China does not intend
16.0
to use a cheaper currency as a way to
Dec 2015 2016 Jan
boost exports and has the tools to keep
the currency stable.” Japanese equities SoftBank Group slid
The People’s Bank of China set the 7.9 per cent on valuation concerns as
daily midpoint rate for its currency the Nikkei 225 fell to its lowest close in
slightly higher against the dollar. a year. The recent strength of the yen
The latest moves to support the ren- helped push Honda down 2.4 per cent
minbi helped lift copper prices 1 per
cent in London to $4,375 a tonne, follow-
ing the metal’s dip to a six-year low Hang Seng index
last Friday. (’000) Change on day 1.45%
22.0
The big focus now for Chinawatchers
will be a batch of economic data — 21.0
including fourth-quarter GDP figures — 20.0
due for release today.
Market moves elsewhere were rela- 19.0
Dec 2015 2016 Jan
tively muted given the US holiday.
The dollar was broadly firmer, gaining Hong Kong equities The Hang Seng
0.3 per cent against the yen to Y117.36 closed at its lowest since September
while the euro slipped 0.2 per cent 2012 amid worries about weak oil
to $1.0899. prices and the global growth outlook
Gold was flat at $1,089 an ounce.

S&P 500 Financials index US markets began last week on the

Wall Street
Materials, financials and
technology rout sparks
a sorry start to the year
Adam Samson
and Mamta Badkar
Just 10 trading days into 2016, US equity
markets have recorded their worst start
to a year on record, with the S&P 500
having erased $1.41tn in value, led by a
rout for materials, financials and
technology companies.
Returning from a long weekend
today, investors face economic data,
a series of earnings results and
heightened uncertainty as to whether
equity benchmarks can find a footing
after such a torrid beginning to the year.
The benchmark US index is now at its
lowest level since August, and on Friday
briefly fell below that month’s low set
during the most recent bout of turmoil.
Every leading S&P 500 sector, with the
exception of utilities, now loiters in the
red for 2016, while last year’s top
performers — Facebook, Amazon,
front foot but hopes of a rally were Trading Directory
320 snuffed out by a comprehensive global
310 sell-off on Friday.
300 One barometer of expectations for
290 the US economy, the Dow Jones
280 Transportation Average, has fallen 11
Jan 2016
Source: Thomson Reuters Datastream
per cent so far this year, led by rail and
airline carriers, while FedEx has
Day's dropped 14.8 per cent.
Indices
S & P 500
Close
1880.33
change
-41.51
In a holiday-shortened week in the
US, investors will have crucial economic
DJ Industrials
Nasdaq Comp
15988.08
4488.42
-390.97
-126.59
data to parse as trading resumes today.
Federal Reserve policymakers
Russell 2000 1204.70 -8.35 expressed “significant concern” about
VIX 27.02 3.07
low inflation when they raised interest
US 10 yr Treas Bd 2.03 -0.06
rates last month — that concern is
US 2 yr Treas Bd 0.85 -0.05
expected to be confirmed this week as
economists expect that US consumer
prices were largely unchanged in
December from the previous month.
Netflix and Google, known collectively So-called core inflation, which strips out
as the Fangs — have also fallen sharply food and energy prices, is expected to
since the start of January. have climbed 0.2 per cent.
Facebook has lost 9.3 per cent this Investors will also get a snapshot of
year, Amazon slid 15.6 per cent, Netflix the US housing market with the updates
dropped 9 per cent and Google is down on homebuilder confidence, existing
8.7 per cent. Shares in Apple, the home sales and housing starts.
world’s largest company by market The current US earnings season also
capitalisation at $538bn, have fallen 7.7 heats up this week, with 42 S&P 500
per cent so far this year, for a decline of companies due to report results.
27 per cent from its record close set in Investors will hear from Bank of
February 2015. America, Netflix, Morgan Stanley,
The S&P’s decline over the past three Goldman Sachs, Starbucks,
weeks represents the benchmark’s Schlumberger, General Electric and
longest losing streak since July. The Southwest Airlines among others.
Chicago Board Options Exchange Vix, Among the major S&P sectors
a measure of implied volatility, briefly materials has dropped 11.9 per cent,
rose above a reading of 30 on Friday, financials is down 10.3 per cent while
but the barometer has yet to revisit the technology is off 9 per cent. Utilities
peak of 53.29 seen last August. stand 0.3 per cent up on the year.

London
BP outperforms after
broker upgrade
Bryce Elder
BP was an outperformer yesterday even
as the FTSE 100 slipped to its lowest
close in more than three years.
SocGen added BP to its “buy” list as
part of an oil sector review.
BP switched its strategy to volume
over growth in 2011, shrunk its portfolio
by a third in the wake of the Macondo
disaster, and anticipated a year ago that
oil might drop to $45 a barrel, said the
broker. So, while BP’s free cash flow will
be negative this year, the early action
means a recovery to $60 a barrel by 2017
would be enough to cover a dividend
that currently yields 8.6 per cent, it
forecast.
SocGen put a 375p target on BP, which
closed up 0.7 per cent to 340.5p.
In a thinly traded wider market, the
FTSE 100 lost 0.4 per cent or 24.18
points to 5,779.92. Banks led the
declines, with HSBC off 1.2 per cent to
479.7p and Barclays down 2.2 per cent to
187.7p.
Irish distribution conglomerate DCC
faded 1.6 per cent to £50.05 after Davy
moved from “buy” to “hold.” A
valuation of 17 times next year’s
earnings has already priced in
acquisition-led growth, whereas mild
winters have tended to weigh on DCC’s
operating profit as fuel volumes for its
oil division decline, Davy argued.
Glencore added 2.2 per cent to 75.2p
after JPMorgan Cazenove added the
stock to its focus list as part of a mining
sector review.
At spot prices, Glencore is the only UK
diversified miner to generate positive
cash flow and its shares will re-rate as
credit risks recede, said JPMorgan. The
call was dependent on Glencore selling
its agriculture unit, which JPMorgan
valued at $8bn.
Vedanta Resources reversed last
week’s rally to hit a record low, down 8.7
per cent to 205.8p. The shares had
bounced last week after Vedanta
launched a tender offer for up to $500m
of bonds.
JPMorgan forecast that Vedanta
would remain lossmaking until 2019
and was unclear on how the tender offer
was being funded.
Shire gained 1.7 per cent to £42.50,
with Exane BNP Paribas the latest
broker to turn positive on the back of its
$31bn deal to buy Baxalta. Of the 15
sellside analysts covering Shire, 14 rate
it a “buy” and none are sellers.
Amec Foster Wheeler rose 1 per cent
to 392p on the resignation of Samir
Brikho, its chief executive for nine
years. Mr Brikho was paying the price
for a November profit warning rather
than any problems since and his exit
was “evidence of effective corporate
governance,” said SocGen.
26 ★ Tuesday 19 January 2016

SMART MONEY Analysis. Equities

Henny
Sender
FTSE 100 swings towards ‘renationalisation’
London’s main index is better Taking stock
reflecting the UK economy as
US manufacturing oil and mining stocks wither
Energy and Mining stocks
Market value (£bn)
FTSE 100 sectors
Jan 2015 (% of total value)
woes pose dangers MICHAEL HUNTER
300 Utilities 4.5 Energy

for wider economy

IT & Telecoms 6.8 Materials
London is an international city, and this Industrials 7.3
characteristic means it has often been 250 14.6
accused of having more in common with Healthcare 10.0 8.3
the wider world than the rest of the UK. FTSE 100 Oil & Gas index

I
f currencies at least partly determine where things get The same can be said of the city’s main
made, the continued rise in the dollar is bad news for equities index. The number of global 200
manufacturers in the US. It is especially bad news resource companies drawn to a London
given that the rise is particularly sharp against the listing has given the FTSE 100 an inter- Financials 21.9 Consumer goods 26.4
Chinese renminbi, as the mainland has become the national complexion. Since the index
workshop of the world since 2001 when China joined the consists of the top listed companies 150 Jan 2016 (% of total value)
World Trade Organisation. defined by market value, its reflection Utilities 4.7 Energy
Manufacturing accounts for less than 12 per cent of gross of the domestic UK economy has
domestic product and 8.6 per cent of employment in the become less clear. IT & Telecoms 8.2 Materials 5.0
US. But this does not capture the true importance of manu- As mining and oil stocks wither and
100 Industrials 6.9 11.9
facturing to the economy. In addition, manufacturing has the British economy grows at one of the
an impact on the services sector, where the bulk of jobs are best rates in the G7, might 2016 be the Healthcare 10.5
concentrated. “Manufacturing matters more than its size year the FTSE 100 starts to return to its
suggests,” says Bruce Kasman, chief economist of JPMor- roots, in what could be described as a FTSE 100 Basic Materials index
gan in New York. “And it also has a signalling effect; it picks kind of renationalisation? And how far 50
up things first.” will it be held back by its underexposure 2015
Jan Jan
Moreover, manufacturing “plays an outsize role in the to other fast-growing sectors, particu- Sources: Thomson Reuters Datastream; Bloomberg 16 Financials 22.4 Consumer goods 30.2
financial markets. It accounts for 60 per cent of the profits larly technology stocks?
of companies in the S&P 500,” as Ruchir Sharma of Morgan “It’s now looking much more like a
Stanley Investment Management notes. straight play on the UK economy,” says The the next FTSE 100 reshuffle in March. delivered great outperformance. When expected to continue looking at raising
So it matters that American manufacturing is still far Nicolas Ziegelasch, head of equity There are already well-known former the tide turns on commodities, this era UK rates this year, while the European
from robust. New orders in the December Markit PMI research at Killik & Co. “For an invest- aggregate top-tier names relegated to the FTSE will come to an end,” he says. Central Bank loosens its monetary
were virtually stagnant while the ISM manufacturing ment strategy like ours, that looks for market cap of 250, including miners KAZ Minerals — Analysis from the bank shows that policy, suggesting that the pound should
report came in below 50 for the second month in a row — balance through a diverse range of sec- the index’s formerly Kazakhmys — and Vedanta constituents on the London index strengthen against the euro.
something that has not happened since 2009. Moreover, tors internationally, London has been Resources, caught in the slide after the “obtain only around 20 per cent of their Looking further ahead, the lack of
there is good reason to believe that manufacturers are the place to come for oil and mining mining stocks peak of the commodities boom in 2011. revenues from the UK economy, on breadth on the main London index,
likely to come under intensifying pressure. That will have stocks, and they are firmly out of favour. has fallen The FTSE 100 underperformed the average”. So if the FTSE 100 is being red- especially its lack of technology stocks,
ripple effects on both the economy and financial markets From our perspective, the FTSE 100 has from more UK-focused FTSE 250 in 2015, los- omesticated, it will be a gradual process. could hamper its long-term progress.
— few of them good. become far less relevant as an index.” ing almost 5 per cent compared with the It is not just oil and mining stocks that That adds to Mr Ziegelasch’s belief at
Meanwhile, China will only The aggregate market cap of the £125.6bn a mid-cap index’s rise of 8 per cent. face a re-rating. Financial stocks are also Killik that any rebound for resource
make things worse. Indeed
Technology index’s mining stocks has fallen from year ago to The abundance of resource stocks and part of the pattern. stocks that might follow a recovery in
“companies which rely on means the ‘build £125.6bn a year ago to £63.5bn in Janu- £63.5bn their heavy weighting on the index has Aberdeen Asset Management, which commodity prices could leave the FTSE
China, particularly in the ary 2016. Over the same period, energy made it easier for active fund managers runs funds exposed to Asian emerging 100 looking all the more anachronistic.
manufacturing sector, have
it and they will and oil stocks have declined from more to beat its performance during the slide markets and is often seen as a proxy for “Miners and oil stocks have made
been pointing to China as neg- come’ mentality than £244bn to £180bn in terms of their in commodities and resource stocks. that region, is down 22 per cent since the London their natural home. The sectors
atively impacting results”, total market value. “Staying out of these sectors has been start of the year, having fallen a third will not shut up shop and go somewhere
research boutique Credit-
is in the past Glencore, the miner and commodities a key element of outperformance in in 2015. else; any sustained rebound could take
Sights noted in a recent report trader that listed at 530p a share in 2011, recent times,” says David Stubbs, mar- With such a high proportion of FTSE them back on to the index. But the
listing some of the casualties in the US. is trading at 74.6p. Anglo American was ket strategist at JPMorgan. “The past 100 earnings coming from outside the FTSE’s lack of exposure to technology
It wasn’t supposed to be like this. the index’s biggest faller of 2015, down few years in the UK have been unusual, UK, currency translation will play an stocks, in particular, means it will miss
The falling cost of energy in the US as a result of the shale 75 per cent, and it could be relegated at in that the consensus trade has also important role. The Bank of England is out on a lot of potential upside,” he says.
revolution was supposed to encourage the relocation of
operations from both domestic and foreign companies.
For example, numerous energy intensive businesses, such
as petrochemical companies, were expected to build new Currencies
plants in the US as a result of changing economics.
Technological breakthroughs would encourage even
old-economy companies such as carmakers to expand or
shift production to the US. Finally, quantitative easing was
China imposes severe
supposed to encourage manufacturers to expand capex.
None of these things has really happened. The cost of
offshore renminbi curb
energy everywhere plummeted, undermining the compet-
itive advantage of the US. There is excess global manufac-
turing capacity, giving producers little confidence to estab- GABRIEL WILDAU — SHANGHAI Speculators have used
lish new facilities. Technology means that the “build it and CNH as a funding currency to
they will come” mentality is a thing of the past. China is to force some banks execute a short-term carry
Quantitative easing and low rates have provided more to set aside a portion of their trade in which they swap
incentive for chief executives to pursue share buybacks offshore renminbi deposits borrowed renminbi for dol-
(often with borrowed money) than to invest in their busi- as reserves in its latest lars, then repay the loan once
nesses. Cheap financing has also encouraged consumers to attempt to squeeze liquidity CNH has weakened.
borrow, in some cases excessively. The growth in subprime and stymie speculation on The offshore CNH market
auto loan defaults suggests car sales may soon slow. depreciation of the cur- has largely operated outside
Today, manufacturing is still in positive territory in the rency. the reach of mainland
US — but barely. The latest payroll numbers were also posi- It is the first time China has authorities since its creation
tive. Yet a more nuanced glance suggests the economy still imposed a reserve require- in 2010. China’s central bank
hasn’t healed. Jobs are growing far more slowly than before ment for offshore renminbi. can exert regulatory influ-
the financial crisis — or even last year. Manufacturing gen- Domestic large banks are ence over the CNH market,
erated 17,000 jobs for the year through November, a sad obliged to hold 17.5 per cent however, through rules
contrast to 2014 when 18,000 were created every month. of onshore renminbi deposits affecting the onshore corre-
Moreover, there are few signs of inflationary pressure. as reserves. spondent banks that link the
While some inflation hawks worry that state efforts to Yesterday’s move is an markets.
raise minimum wages (19 states have such measures in escalation of People’s Bank of In recent weeks, the PBoC
place) in a political year are damaging, they are too mar- China efforts to discourage has intervened on the CNH
ginal to have much impact, Mr Kasman adds. capital outflow and curb ren- by selling dollars in the open
Part of the explanation of the slack lies in the travails in minbi weakness in onshore market, but the latest move
energy. ConocoPhillips for example expects its wage bill to and offshore markets. broadens its use of adminis-
be far lower this year than last. The problems seem deeper The spread between trative measures to influence
than the difficulties in a single — albeit troubled — sector. onshore and offshore ren- the offshore market. The
All this means deflationary pressures are intensifying minbi widened to a record central bank previously sus-
and the likelihood of recession, which is almost always early this month before the pended certain foreign-
manufacturing led, is growing. That makes the probability PBoC intervened in the off- exchange transactions by
of further Fed rises ever more remote. This year, sadly, is shore — or CNH — market in onshore units of foreign
going to be tough both for Main Street and for Wall Street. Hong Kong to narrow the banks that were helping cli-
gap. The onshore renminbi ents arbitrage between the
henny.sender@ft.com has fallen 2.7 per cent against renminbi exchange rates.
the dollar since December. Mainland correspondent
The overnight CNH bor- banks serve a crucial role in
rowing rate jumped to a Hong Kong’s offshore ren-
record 67 per cent last week minbi market by offering
after the PBoC sold dollars other banks that accept CNH
More comment and data on ft.com from reserves to buy ren- deposits from customers a
minbi, squeezing liquidity in place to hold those funds.
the CNH money market. The “dim sum” bond mar-
Y Fast FT Our global economies, headed The requirement will per- ket and the Renminbi Quali-
team gives you market- by Brazil, Russia, India manently raise CNH interest fied Foreign Institutional
moving news and views, and China. rates by forcing banks to set Investor programme offer
24 hours a day, five days ft.com/beyondbrics aside a portion of CNH channels to invest CNH
a week. ft.com/fastft deposits at the central bank. funds in, respectively, off-
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a “As depreciation pressures shore renminbi bonds or
irreverent financial blog. look at what is driving have intensified, the offshore onshore stocks and bonds,
Join Paul Murphy and the global currency market has become an but neither is large enough to
Bryce Elder for the daily market. ft.com/podcasts important venue for short accommodate the
Markets Live session at selling the renminbi,” Yu Rmb864bn of renminbi
Y Lex Video Analysis Xiangrong, analyst at China deposits in Hong Kong by the
11am. ft.com/alphaville
and opinion from the International Capital Corp, end of November. Mainland
Y beyondbrics News and team on the hot issues wrote. “This move will push banks with access to the
comment from more affecting companies and up the cost of offshore ren- broad range of onshore
than 40 emerging markets. ft.com/lexvideo minbi financing and help to assets serve as an important
restrain speculation.” conduit for CNH liquidity.