TUESDAY 16 FEBRUARY 2016 WORLD BUSINESS NEWSPAPER EUROPE

Scandal at 1MDB Splendid isolation Gold rush

Malaysian affair shows loopholes Americans are losing faith in Negative rates give gold bugs
in global finance — PAGE 7 globalisation — GIDEON RACHMAN, PAGE 9 their chance — MARKETS, PAGE 24

Russia and Turkey edge closer to Briefing

i Shell chief forecasts break-even in Brazil

clash after Syria strikes mount

Ben van Beurden has forecast that oil prices will
rebound this year to allow output in the country’s
deepwater fields to break even. The group is a big
investor in Brazil’s offshore deposits.— PAGE 13

i Deadlock feared at US Supreme Court

3 Direct confrontation threatens as tension rises 3 Two countries back opposing sides
FT REPORTERS
Tension between Russia and Turkey has
reached a new peak as the two countries
step up military action in Syria in sup-
port of opposing sides, edging closer to
direct confrontation in the country’s
increasingly internationalised war.
The growing rift between the two
countries — with each now attacking
rebels the other supports — has alarmed
western diplomats amid fears Russia is
seeking to undermine Nato by ramping
up its clash with Ankara.
“It seems to us that just like in the Bal-
tics, Russia wants to try and push at
Nato’s ability to stand behind all its
members,” said a Nato official. A senior
European official said Russian president
Vladimir Putin was seeking to destabi-
lise Recep Tayyip Erdogan, his Turkish
opposite number.
“Putin is furious with Turkey,” said
the European official. “The situation is
really incredibly serious.”
The latest rise in tension revolves
around Kurdish fighters in Syria, who
are backed by Moscow and the US and
other western countries but whom
Ankara views as antagonists.
Moscow’s strikes against anti-Assad
rebels in Syria’s northern Aleppo prov-
ince have created an atmosphere of
chaos that has been exploited by the
Syrian Kurdish militia, known as the
YPG. It has seized towns held by rebels
backed by Turkey and the Gulf states.
In turn, Turkey has started shelling
the Kurdish fighters after they
advanced on the Turkish border,
despite warnings from Ankara to stay
put. The Turkish military continued the
attack yesterday, despite furious denun-
ciations by Moscow, which called for UN
condemnation of the attacks.
The Russian foreign ministry said
Turkey’s actions had hit Syrian towns
“recently liberated from the terrorists”
by the Syrian army and Kurdish fight-
ers, and had “killed and wounded many
in the civilian population, destroyed
The court’s ability to decide cases has been thrown
into doubt by the death of Antonin Scalia, with ties
possible between four conservative and four liberal
judges.— PAGE 3; EDITORIAL COMMENT, PAGE 8
i Weak growth deals fresh blow to Abe
Figures have shown Japan’s economy shrank more
than expected in the fourth quarter as weak wage
growth caused sluggish domestic demand and dealt
a further blow to the Abenomics stimulus.— PAGE 4
i Probes pile pressure on Spanish premier
The prospects of Mariano Rajoy clinging
to power have been hurt by arrests
and revelations linked to corruption
in his Popular party just as rival
leaders begin talks on forming a
government.— PAGE 2
i Soft drinks present hard target in Asia
Indonesia, India and the Philippines have laid out
plans to follow France, parts of the US and Mexico
in introducing a sugar tax, though analysts say any
moves could deter inward investment.— PAGE 4
i Swiss tunnel vote amid doubts over EU
A referendum on plans for a second road tunnel
through the Gotthard mountain has become mired
in arguments over whether more physical links
with the EU are needed.— PAGE 2
i Lunar new year boost for renminbi
China’s currency enjoyed its biggest one-day gain in
a decade as onshore traders returned from the
lunar new year holiday to supportive comments
A hospital in infrastructure and residential build- lawed Kurdistan Workers party, which with al-Qaeda while also permitting from the central bank.— PAGE 24; LEX, PAGE 12
Idlib province in ings”. Russia, which was itself accused it has been battling for three decades. wounded fighters to return to Turkey.
northern Syria yesterday of striking three hospitals in It also sees the Kurdish fighters as Turkey has denied all such charges.
after an attack the north, is keen to throw the spotlight rivals of the Arab Sunni rebels Turkey Russia’s entry into the Syrian conflict Datawatch
yesterday on Ankara, highlighting the divide favours in the Syrian conflict. in September led Moscow and Ankara
Sam Taylor/MSF/EPA
between Turkey and its Nato partners. But the US prizes the YPG as the most into a strategic rivalry.
Ankara denounces the YPG militant successful Syrian force combating Isis, Despite an agreement that a ceasefire Official development Aid from wealthy
group as an affiliate of Turkey’s out- the extremist jihadi group. should start later this week and requires assistance (Net, 2014*) to poorer nations
Turkish prime minister Ahmet Davu- all conflict parties to scale down fight- Sweden rose in 2014, with
Luxembourg net development
toglu accused the YPG of being “Russia’s ing, the Russian air strikes have shown Norway assistance flows
Once President Barack instrument in Syria”, threatening fur- no sign of abating. Denmark of $137bn, up
ther attacks on the Kurdish fighters. The Russian government claimed its UK
Obama had let Bashar He said that Turkey would attack the Aleppo campaign was not subject to the Germany
1.2 per cent on
2013 and 70 per
al-Assad cross his ‘red line’ Menagh air base north of Aleppo if Syr- ceasefire. “We fight against terrorist France * As a % of gross
Japan national income (top
cent on 2000.
and use chemical weapons ian Kurds did not withdraw from it and groups — Isis, Jabhat al-Nusra and oth- Only five nations
Italy five countries and
vowed to protect the Syrian border town ers connected with al-Qaeda,” a minis- hit the UN target
Michael Ignatieff in 2013, the US was left of Azaz from the Kurdish forces. ter told German magazine Der Spiegel.
US
Spain
selected others)
of 0.7 per cent of
page 9 with a policy in Syria that Moscow also accused Ankara of Reporting by Erika Solomon in Beirut, 0 0.2 0.4 0.6 0.8 1.0 1.2 national income
allowing fighters to cross the border into Kathrin Hille in Moscow, Mehul Srivastava devoted to aid
dares not speak its name Syria to join Isis and groups affiliated in Istanbul and Sam Jones in London
Source: OECD

Terrorists, criminals and big-spending

Germans, take note — €500 bill to die
JIM BRUNSDEN — BRUSSELS Speaking to European Parliament would be unpopular in Germany, which
JAMES SHOTTER — FRANKFURT
lawmakers in Brussels yesterday, Mario has a tradition of using high-value notes
International terrorists, money laun- Draghi, ECB governor, gave his clearest for big purchases.
derers and German car buyers will indication yet that the note was on bor- According to a study published by
have to rethink their currency options rowed time, saying there was an Europol last year, shops often refuse to
Canadian pensions group after the European Central Bank “increasing conviction” that such notes accept €500 bills. But they still account
makes Snap decision moved to make the €500 bill a thing of were used for criminal purposes. for one-third of the value of all euro
the past. Asked last week, Michel Sapin, bank notes in circulation.
Report i PAGE 14 France’s finance minister, said the €500 It highlighted the case of Luxem-
While many Europeans have never set bill was “used more to conceal activities bourg, which issued bills totalling
eyes on the purple notes — and few than to buy things, more used to facili- €87.5bn in 2013, about twice its GDP,
Austria €3.60 Macedonia Den220 shops accept them — they have featured tate dishonest activities than by people with a “significant proportion” in high
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 prominently in EU discussions about like you and me to get a bite to eat”. denominations, although it is one of the
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 how to choke off terrorist financing, a Finance ministers last week called for most “cash averse” countries in the
Cyprus
Czech Rep
€3.50
Kc100
Norway
Oman
NKr34
OR1.50 key concern since the Paris attacks. a review of the notes but the decision on eurozone.
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 280
Zl 18
Rob Wainwright, director of Euro- the €500 bill rests with the ECB. Complicating matters, Bild, Ger-
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15
pean police agency Europol, has called Although Mr Draghi stopped short of many’s highest circulation newspaper,
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00
high-denomination notes the “currency announcing an end to the note, an infor- launched a “hands off our cash” cam-
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
of choice” for criminal and terrorist net- mal decision has been made to with- paign aimed at Wolfgang Schäuble, the
India Rup195 Slovak Rep €3.60 works, while policymakers complain draw the bill, according to people finance minister, to protest at plans to
Italy €3.50 Slovenia €3.50
Kazakhstan US$5.50 Spain €3.50 that many of the bills reside not in the briefed on the matter. limit maximum cash payments.
Kenya Kshs300 Sweden SKr37
Kuwait KWD1.50 Switzerland SFr5.90 eurozone, but in Russia. Taking the note out of circulation ECB ready to do its part page 2
Latvia €6.99 Tunisia Din7.50
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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Europe
ECB ‘ready to do its part’ to boost bloc
Draghi’s speech hints
at further stimulus
measures for the eurozone
JAMES SHOTTER — FRANKFURT
Mario Draghi said the European Central
Bank was “ready to do its part” to make
the eurozone more resilient, in the latest
indication that it could unveil further
stimulus measures next month.
In his first public speech since Euro-
pean banks’ stocks were caught up in a
brutal sell-off last week, the ECB presi-
dent said the central bank would pay
close attention to the impact of the
recent falls in oil and commodities
prices, as well as the ability of banks to
pass on the ECB’s monetary policy.
“If either of these two factors entail
downward risks to price stability, we
Swiss voters mull Alpine tunnel vision
Second road passage through
massif divides opinion ahead
of referendum this month
RALPH ATKINS — ZURICH
For European holidaymakers, the 17km
road tunnel through the Gotthard mas-
sif in the Swiss Alps is synonymous with
delays and traffic jams.
For Switzerland, the Gotthard means
much more. The passage offers the most
direct connection between northern
and southern Europe — binding the
prosperous Alpine nation with the econ-
omies of the EU — while the treacherous
pass above the tunnel, including the
Teufelsbrücke, or Devil’s Bridge, forms
a key part of Swiss mythology.
The Gotthard is a “monument to our
identity”, says Christoph Blocher, the
driving force behind the ultraconserva-
tive Swiss People’s party, the country’s
largest political group.
But the fate of the Gotthard has
become infused with political contro-
versy, with Swiss voters set to decide in a
referendum this month whether to push
ahead with a second road tunnel
through the mountain.
The huge project, which is opposed by
environmentalists, would deepen Swit-
zerland’s physical links with the EU, at a
time when the relationship with the bloc
is becoming more complicated.
Daniel Müller-Jentsch, researcher at
the Avenir Suisse think-tank, says that
while the UK, an EU member where
Euroscepticism is also strong, is an
island, “Switzerland is an enclave in the
middle of the EU”.
Although at the heart of Europe, Swit-
zerland has trodden a different path
from its neighbours. The country devel-
oped in the Middle Ages around Alpine
transit routes. In the second world war,
it avoided a German invasion by threat-
ening to destroy Gotthard links.
On a wintry February morning, the
howls of lorries entering the tunnel are
quickly lost in the high valleys on either
side. Even on a good day, driving
through it can be a claustrophobic and
hair-raising experience. In 2001, 11 peo-
ple died in a fire that broke out when
two lorries collided inside the Gotthard.
A second tunnel would double the
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will not hesitate to act,” he said in a
speech to the European Parliament. The
euro fell 1.1 per cent to $1.1138 following
Mr Draghi’s comments.
In December, the ECB cut a key inter-
est rate to a historic low of minus 0.3 per
cent and pledged to continue its €60bn-
a-month bond buying programme until
March 2017 in a bid to shore up the euro-
zone economy and push inflation closer
to its target of just under 2 per cent.
However, the moves failed to impress
investors who had hoped for deeper rate
cuts and additional bond purchases. Mr
Draghi responded to these concerns in
January, saying the ECB would “review
and possibly reconsider” its policies,
and he repeated this stance yesterday.
The eurozone economy has been
lacklustre, with growth in the final quar-
ter of 2015 at just 0.3 per cent, as Italy’s
economy stagnated and Greece fell back
Transit route:
the Gotthard
pass through the
Swiss Alps. Top
right: a section
of the new 57km
rail tunnel,
which will
enable trains
to travel at
speeds of up
to 250km/h
Spiegl/ullstein bild via Getty
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Schmidli/Bloomberg
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FINANCIAL TIMES Tuesday 16 February 2016
INTERNATIONAL
GLOBAL INSIGHT
ROME
James
Politi
into recession. Meanwhile, inflation in ‘[ECB] about the impact of the ECB’s loose
the bloc is running at just 0.4 per cent. monetary stance on eurozone lenders.
could very
Howard Archer, of IHS Global Insight,
said after Mr Draghi’s comments that he
expected the ECB to cut its deposit rate
well step up
While the ECB’s asset purchase pro-
gramme and negative interest rates
have helped prevent deflation from
Renzi’s luck runs out
from minus 0.3 per cent to minus 0.4 per
cent at its next meeting. “It could very
its monthly
purchase
becoming entrenched in the eurozone,
the twin policies have put increasing
as problems mount
well step up its monthly purchase of
assets, perhaps by €20bn-€30bn from
the current level,” he added.
of assets’
pressure on banks’ earnings.
Mr Draghi conceded that some of the
fears over banks’ health related to the
at home and abroad
Following recent dramatic swings in
Howard impact of low interest rates, but insisted
Archer, IHS
the prices of banks’ bonds and shares, Global Insight reforms since the financial crisis had
T
Mr Draghi also sought to reassure mar- boosted the resilience “not only of indi- o celebrate the forthcoming two-year anniver-
kets over the health of the European vidual institutions but also of the finan- sary of his time as Italy’s prime minister, Mat-
banking sector. cial system as a whole”. teo Renzi has chosen a slideshow to tout his
The FTSE Eurofirst 300 Banks index “In the euro area, the situation in the accomplishments in office. The self-congratu-
has fallen by a quarter this year, as banking sector now is very different latory presentation seems to suggest that
investors fret about numerous factors, from what it was in 2012,” he said, point- Italians have dozens of reasons to rejoice: unemployment
ranging from the size of lenders’ capital ing out that the eurozone’s banks had has dropped; economic output is up; taxes are down; for-
cushions to the effect of slowing growth. boosted their core tier one capital ratios eign investment has grown.
However, some investors — and many — a key measure of financial strength — But Mr Renzi’s slideshow carefully shields the harsher
bankers — are increasingly worried from 9 per cent to 13 per cent. reality: luck recently seems to have turned against him.
The 41-year-old, who rose to power on a wave of optimism
and goodwill as Italy’s strongest leader since Silvio Berlus-
coni, now has to contend with problems at home and
Transport. EU links abroad that threaten to overwhelm his administration.
On Friday, new figures from Italy’s statistical agency
showed that the economy grew by just 0.1 per cent in the
fourth quarter of 2015. The data raised the worrying possi-
bility that Italy’s fragile and sluggish recovery is not poised
to accelerate as expected by most economists but may be
slowing again. Meanwhile Italian banks have been among
the hardest hit in the recent global markets rout, sparking
concerns that the whole country could be vulnerable in a
new financial crisis.
That is not all: Italy is confronting a grave strategic
dilemma over how to respond to the growing threat of Isis,
just 200 miles south of the Sicilian island of Lampedusa.
Its relations with Egypt, a commercial and strategic rela-
tionship Mr Renzi has worked hard to cultivate, have been
jeopardised by the mysterious murder of an Italian doc-
toral student who was studying trade unions in Cairo.
Mr Renzi is known for
being an agile and effec-
tive political operator but
Headwinds make
those headwinds, during for a much
a pivotal year for the Ital-
ian government, make
gloomier backdrop
for a much gloomier than almost
backdrop than almost
anyone envisaged.
anyone envisaged
FR ANCE GE RM ANY If the economic data
continue to disappoint, it could threaten the ruling Demo-
cratic party’s performance in municipal elections in June,
with Italy’s largest cities all going to the polls. This could
SWITZERLAND also hurt Mr Renzi’s chances of winning a referendum,
expected this autumn, to reduce parliamentary gridlock
Bern Gotthard by cutting the powers of the Senate. He has staked his
rail future on the result by pledging to resign if he is defeated.
tunnel
Mr Renzi would never admit to being under siege but his
Gotthard road instincts for self-preservation are already on show. He has
tunnel adopted a much tougher tone in his relationship with Brus-
sels and Berlin in recent months, attacking Jean-Claude
I TALY Juncker and Angela Merkel for thrusting Europe into the
arms of populism. His latest outburst was a rather clichéd
100km
warning, in a Bloomberg interview last week, that the EU
was like “the orchestra playing on the Titanic”.
number of lanes going through it, ($12bn) project will allow trains The government in Bern is seeking to Domestically there are signs that confrontation with the
though the government insists just two to travel at up to 250km/h, cutting jour- implement a 2014 referendum decision EU is working for Mr Renzi. In recent months his Demo-
would be used at any time. Yet oppo- ney times. in which the Swiss voted for limits on cratic party has risen slightly to 33 per cent, while the pop-
nents insist a new route would cause Mr Müller-Jentsch says the Alpine immigration from EU nations. That has ulist Five Star Movement has fallen back to about 25 per
huge environmental damage. transit infrastructure, as well as efforts brought it into conflict with the EU’s cent, according to a polling average produced by
They say that, since the early 1990s, to devise a sophisticated toll system for principle of the free movement of peo- Termometro Politico, a political website. This means he is
Switzerland has been constitutionally lorries crossing the country, amount to a ple — and of goods carried on trains or likely to keep it up — or even escalate further — in upcom-
committed to shifting traffic from road “huge package of very ambitious meas- lorries. Some Swiss politicians think the ing budget talks with the European Commission.
to environmentally friendlier rail links. ures” by Switzerland. Gotthard tunnels give the country lever- Mr Renzi will make the case that Rome needs budgetary
“Pressure to use that road freight cor- “It is a very strong commitment age in dealing with Brussels. flexibility more than ever to prop up the recovery and
ridor will be immense,” says Manuel towards EU partners because it will take If the EU threatened to cancel bilat- ensure it does not slip back into recession. But EU officials
Herrmann, a leading No campaigner many decades before the Swiss are paid eral agreements, “we say ‘good, do that,’ who have grown frustrated with Italian pleas for fiscal lee-
from the Alpine Initiative, an environ- back. They have invested heavily in because that would mean . . . [you] do way may balk, given that the weak economy has made it
mental lobby group. “It is written into infrastructure on behalf of third parties not have the Gotthard”, says Mr Blocher, even harder for Italy to meet its fiscal targets. A full-blown
the constitution that traffic has to shift beyond their borders,” he says. who led the 2014 campaign to impose clash may well follow in the spring.
from road to rail and you cannot Crucially, the train tunnel will allow EU immigration quotas. “You [the EU] When Mr Renzi took office in February 2014, he had the
increase road capacity,” he adds, calling for more goods to travel by rail, reduc- will have the same problems as you had aura of a young, charismatic leader with plans to remake
the proposition “unconstitutional and ing the pressure on roads and negating in the Middle Ages.” Italy. His biggest achievement to date has arguably been to
illegal”. the need, opponents say, for the second Whether Switzerland could realisti- deliver political stability and international credibility to a
What irks tunnel opponents more is vehicle tunnel to be built. cally block the tunnel is doubtful — for a country used to weak government. But in response to
that Switzerland is just a few months The referendum on February 28 start it would lose the significant income growing adversity, he now resembles a much more con-
away from opening a new 57km rail comes at a critical time for Swiss-EU generated by transit traffic. Whatever ventional and defensive politician — at risk both of domes-
link — the world’s longest — through relations, which are based largely on a the result of the referendum, an enclave tic political rejection and greater international isolation.
the Gotthard. Built at its base to avoid series of bilateral contracts covering in the middle of Europe cannot ignore
steep inclines and descents, the SFr12bn various sectors of the economy. its links to the rest of the continent. james.politi@ft.com
Coalition negotiations
Rajoy faces uncertain future amid fresh corruption probes
TOBIAS BUCK — MADRID responsibility” for the scandal. Ms With the PP and Socialists refusing to tion they will have a much greater
Aguirre told a news conference: “Cor- support each other, Mr Sánchez will incentive to strike an agreement [and
Political corruption scandals cast a
ruption is killing us.” need to win over both Ciudadanos and so avoid a new election]. But at the same
deep shadow over the government of
For Mr Rajoy, the latest corruption the anti-austerity Podemos movement time the party will be much more toxic
Mariano Rajoy for much of his four-
cases could scarcely have come at a — a three-way alliance that most to potential partners,” says Jorge
NOVEMBER 7 2015
year tenure. Now they are darkening
worse time. His party emerged as the observers still regard as unlikely. Galindo, a political analyst and editor of
the Spanish leader’s prospects of hang-
biggest bloc in parliament from an Mr Rajoy has made clear he is ready to the Politikon blog.
ing on to power.
inconclusive general election in Decem- present his own candidacy when and if Recent polls suggest that Spain’s four
At a moment when rival party leaders ber, but he needs the support of other Mr Sánchez fails. But many analysts main parties would obtain more or less
are in talks over forming a new govern- parties to be re-elected as prime argue that the corruption scandals will the same result as they did in the
ROLLING IN THE DEEP
ment, Mr Rajoy’s Popular party is being minister. That task appears even more severely weaken the negotiating posi- December 20 election — though there is
21/10/2015 10:51
buffeted by arrests, revelations and res- daunting. tion of Spain’s acting prime minister. a chance that Podemos could overtake
ignations linked to corruption. In Valen- “These corruption cases don’t make it “If the PP suddenly starts losing the Socialists as the second-biggest
cia, the party has become the target of a any easier to get a deal with a PP that is ground in the polls as a result of corrup- party in terms of the popular vote.
judicial probe into allegations of bid rig- led by Rajoy,” says Antonio Roldán, a Pablo Iglesias, leader of Podemos, yes-
ging and illegal commissions. The judge lawmaker for the centrist Ciudadanos terday presented his party’s plan for a
leading the investigation has named party and a member of its coalition joint government with the Socialists. He
nine out of 10 PP councillors in the city negotiating team. “I don’t think Rajoy hailed the document as a solid basis for a
as formal suspects in the case. can lead the transition we need now. “government of progress” but met a cold
The party is also under fire in Madrid, And I don’t think even his party believes response from senior Socialists.
where the local party headquarters was that any more.” The Podemos programme calls for,
raided by police last week over suspi- Mr Rajoy has spent the past two among other things, an independence
cions that the branch received illegal weeks on the political sidelines after referendum in Catalonia — a demand
payments from businesses. declining an offer from King Felipe VI to the Socialists have made clear they will
On Sunday, the case claimed one of lead the first round of coalition talks. not accept. The paper also calls for Mr
its most prominent political scalps yet: The royal mandate was then extended Iglesias — who has put himself forward
Esperanza Aguirre. The local PP leader to Pedro Sánchez, leader of the Spanish as deputy prime minister — to be given
and a highly influential figure inside the Socialist Workers’ party, who has until oversight of Spain’s CNI intelligence
ruling party announced her resignation, the first week of March to build a viable Mariano Rajoy’s Popular party has service, another demand that is unlikely
saying that she accepted her “political coalition government. been hit by arrests and revelations to pass muster with the Socialists.
Tuesday 16 February 2016
Supreme Court faces tie on crucial rulings
Death of conservative justice leads to Republican threat to block Obama’s choice, a move that risks hobbling decisions
BARNEY JOPSON — WASHINGTON
The US Supreme Court’s ability to
decide cases has been thrown into doubt
by the death of Antonin Scalia, a driving
force of legal conservatism, as it is likely
to leave the remaining justices evenly
divided in crucial rulings.
The post-Scalia court is split between
four conservative and four liberal jus-
tices, opening the door to potential 4-4
ties in landmark cases on immigration,
collective bargaining, abortion and the
redrawing of election maps.
The possibility of ties would be aca-
demic if President Barack Obama were
to swiftly appoint a successor to Scalia.
But with Senate Republicans threaten-
ing to block any Obama nominee, the
chances are high that the eight remain-
ing justices will be deprived of a new
colleague until after a new president is
sworn in.
When the Supreme Court is tied the
decision of the lower court is upheld and
no nationwide precedent is set,
although the justices can vote to hear
the case a second time when Scalia’s
replacement is finally appointed.
“They’ll continue on and write and
issue opinions that are 4-4,” says Carl
Tobias, a University of Richmond law
professor. “The problem with those
[decisions] is they don’t affect anyone.
The appeal from which they’re taken
becomes the ruling in that particular
case.”
Although Mr Scalia was a staunch
conservative who became a rightwing
hero during his three decades on the
court, his death does not assure liberals
that their causes will be advanced. In
some cases the appeals court ruling that
would stand in the event of a tie has a
conservative slant. In others, individual
justices will retain their capacity to sur-
prise with deadlock-defying votes that
confound the pundits, observers say.
“The labels liberal and conservative
don’t always apply. It depends on the
issue,” says Mr Tobias. “You can’t paint
with that kind of broad brush stroke.”
Roy Englert, a veteran Supreme Court
lawyer, plays down the prospect of trou-
ble flowing from an eight-person court.
“It is not a political institution, although
it is often caricatured as if it were a polit-
ical institution. They know what they’re
doing and they will do their job,” he says.
“My message is two words: calm down.”
Four days before Scalia’s death, the
Supreme Court intervened in Mr
Obama’s plan to cut greenhouse gas
emissions from the power sector.
Although the highest court has not
taken up the case, it ordered that the
White House race. Democratic primaries
Gaffes threaten to turn Clinton’s
‘secret weapon’ into a loose cannon
Questions emerge about
whether former president is
harming or helping campaign
COURTNEY WEAVER — WASHINGTON
He is her “secret weapon”, the man who
can make her campaign, be the best
advocate for her candidacy and offer
advice once she gets to the White House.
Yet as he stumps for Hillary Clinton
ahead of key Democratic primaries this
month in Nevada and South Carolina,
questions are emerging about whether
Bill Clinton is still his wife’s best calling
card, or whether he is doing more to
harm her campaign than to help it.
Over the past two weeks, Mr Clinton
has come under fire for comments criti-
cising both Bernie Sanders, Mrs Clin-
ton’s challenger for the Democratic
nomination, and President Barack
Obama — remarks some political
observers say went too far.
After barely eking out a victory in
Iowa and posting a 20-point loss in the
New Hampshire primary, Mrs Clinton is
under increasing pressure to perform
strongly in the two states and regain
momentum in the national race. While
she is expected to do well, especially
among black and Hispanic Democrats,
there are signs that Mr Sanders is mak-
ing inroads among some of her key con-
stituencies, particularly young voters
and women.
The latest gaffe came at an event in
Memphis this weekend, where Mr Clin-
ton appeared to diminish the historical
significance of Mr Obama being the first
black president by suggesting that all
Americans were of mixed race. “Unless
your ancestors, every one of you, are
100 per cent from sub-Saharan Africa,
we are all mixed-race people,” Mr Clin-
ton told the audience of Democratic
supporters.
He also in the same speech criticised
Mr Obama for not being what he called a
Succession plan
Srinivasan emerges as
a leading contender
President Barack Obama has vowed to
fulfil his “constitutional responsibilities”
to nominate a successor to Antonin Sca-
lia, despite Senate Republicans’ likely
attempts to thwart an appointment.
The White House has not revealed a
shortlist, but one leading contender is
Sri Srinivasan, 48, an appeals court
judge who was born in India and moved
Contentious Obama rules be frozen while an appeals
issue: an court judgment was pending.
anti-abortion Before the Supreme Court’s current
campaigner term ends in June, its own judgments
protests outside are due on a host of issues. Here are the
the US Supreme key cases where 4-4 ties are possible.
Court on Sunday
after Antonin Immigration
Scalia’s death With Mr Obama’s legacy on immigra-
Drew Angerer/Getty Images
tion at stake, the Supreme Court is
“change-maker”. “A lot of people say
‘you don’t understand — it [the political
system] is rigged now’. Yeah, it’s rigged
now because you don’t have a president
that’s a change-maker,” he said.
In response Aaron Camp, a Demo-
cratic blogger, wrote: “For [Mr Clinton]
to claim that we are all mixed-race peo-
ple . . . is dismissive of the serious prob-
lem of racism andracial inequalityinthis
country,and,asamatteroffact,racist.”
Chris Hayes, the MSNBC news anchor,
declared Mr Clinton appeared to have
gone “off-message” with his speech.
The reaction follows a similar
response to comments Mr Clinton made
about Mr Sanders, whom he described
as dishonest and “hermetically sealed”.
He has also accused supporters of Mr
Sanders of making sexist and profane
language about Mrs Clinton — com-
ments which come amid renewed scru-
tiny over Mr Clinton’s past behaviour,
particularly allegations of sexual impro-
priety that have long haunted him.
Donald Trump, the Republican front-
runner, has sought to use the former
president’s marital infidelity and
alleged sexual misconduct as a way of
damaging Mrs Clinton. “Hillary Clinton
has announced that she is letting her
husband out to campaign but he’s dem-
onstrated a penchant for sexism, so
inappropriate!” Mr Trump tweeted late
last year.
Writing in Time magazine, Caitlin
Flanagan, the feminist writer, said she
Bill Clinton at a rally for his wife in
Las Vegas earlier this month
★ FINANCIAL TIMES 3
INTERNATIONAL
reviewing a Texas challenge to the presi-
dent’s 2014 move to shield up to 5m
unauthorised immigrants from the
threat of deportation. A tie would
uphold an appeals court ruling that
went against the Obama administration
for exceeding its authority.
Unions
In a case vital to the US’s shrinking
labour unions, the justices are set to rule
on whether public sector employees
who are not union members can, never-
theless, be required to pay union fees to
cover the cost of collective bargaining
over contracts that apply to them. An
appeals court ruled against non-union
teachers in California who do not want
to pay.
Abortion
In the first big abortion case before the
court in almost a decade, the Obama
administration is backing a challenge to
a strict new law on abortion clinics in
Texas that has already led to the closure
of multiple facilities. The law requires
clinic doctors to have the right to admit
patients to a local hospital and an
appeals court ruled in its favour.
Religion
Mixing religion and Mr Obama’s health-
care reforms, the Supreme Court is con-
sidering whether religious organisations
should be exempted from an
“Obamacare” requirement to provide
contraception coverage in their health
to the US with his family in the 1960s. former Enron chief executive Jeff the law firm Akin Gump before joining insurance plans for employees. A series
A moderate with pro-business Skilling in a Supreme Court case. the judiciary. Other judges Mr Obama of contradictory lower court rulings on
credentials, he was appointed to the US The appeals court in Washington has could consider include Paul Watford, an the issue are a “mess”, says Mr Englert.
Court of Appeals for the District of often been a springboard to the highest African-American who serves on the
Columbia Circuit with a 97-0 vote in the court and another contender it offers is ninth US Circuit Court of Appeals, and Electoral maps
Senate in 2013. That overwhelming Merrick Garland, 63, its chief judge. Mr Jacqueline Nguyen, a Vietnamese- The way state and local governments
support, together with his ethnic Obama considered him for Supreme American who serves on the same court. decide electoral districts is being chal-
background, could make it harder Court openings in 2009 and 2010 and at Also in contention is Kamala Harris, lenged in a case that centres on whether
politically for Republicans to block him. the time Mr Garland had support from California’s attorney-general, who is states must count all residents or only
When Mr Srinivasan worked at the US some prominent Republicans. running for a California seat in the US eligible voters in drawing maps. Demo-
justice department he was part of a Another possible candidate from the Senate that is opening up this year. crats generally want to count all
team that secured a ruling paving the DC appeals court is Patricia Ann Millett, Before her election in 2011 she was a residents — including children and non-
way for the legalisation of gay marriage. 52, who argued multiple cases before district attorney. Barney Jopson, New citizens — and a lower court supported
In private practice he represented the Supreme Court when she worked at York. Additional reporting by Reuters that position.
Editorial Comment page 8
had supported Mr Clinton in the 1990s
but now had misgivings.
At recent Clinton campaign events,
people who shared Ms Flanagan’s views
were in the minority. Most attendees
said they had come to see Mrs Clinton or
to show their support for her presiden-
tial bid, rather than to catch a glimpse of
her husband.
And despite his gaffes, Mr Clinton has
sought to keep the spotlight on his wife,
a shift from her 2008 presidential cam-
paign when he was accused of overshad-
owing her.
At campaign stops in Davenport,
Waverly and Cedar Rapids, Iowa, voters
were treated not to the orator who gave
a blockbuster, victory-lap speech at the
2012 Democratic National Convention.
Instead there was a gaunter 69-year-old
whose speeches were softer, more
meandering and lacking some of the
verve and rhetorical flourishes Mr Clin-
ton was once famous for.
In Waverly, Mr Clinton told of meet-
ing his future wife for the first time and
relayed her achievements as a tireless
advocate for children and for universal
health coverage, who had excelled as
secretary of state and had the “experi-
ence and temperament” for the top job.
“Her immediate instinct is what can I do
to make it better,” he told the small
crowd of supporters.
In Davenport, he gave his wife a brief
introduction before disappearing from
the stage and letting her stand alone at
the podium. “He [Mr Clinton] wasn’t
overpowering — it wasn’t all about him,”
said Alison McGaughey, a Davenport
community college instructor who was
in attendance.
“She is so smart . . . Her knowledge is
way up here,” said Lorie Huffman, a
retired teacher in Waverly who saw Mr
Clinton speak on behalf of his wife.
Asked what she thought of Mr Clinton,
Ms Huffman wrinkled her nose. “He
was a nice president,” she said, “but I’m
more a fan of Hillary.”
Gideon Rachman page 9
4 ★ FINANCIAL TIMES Tuesday 16 February 2016

INTERNATIONAL

Japan Downturn

Abe dealt further blow as economy shrinks Chinese trade

Figures put pressure on
BoJ to encourage strong
wage rises in the spring
ROBIN HARDING — TOKYO
Japan’s economy shrank at an annual-
ised rate of 1.4 per cent in the fourth
quarter of 2015 in a further blow to
Prime Minister Shinzo Abe and his Abe-
nomics stimulus.
Economists had forecast a fall of 1.2
per cent but the figure came in worse
than expected because of a sharp
decline in consumption.
The data suggest Japan’s economy is
still plagued by the weakness of domes-
tic demand as it enters a fourth year of
record monetary stimulus, with wages
not rising fast enough to persuade con-
sumers to spend.
There is no sign of a downward spiral
in the economy but with the yen rising
to trade at Y113.8 to the dollar in recent
weeks, the figures put pressure on the
Bank of Japan for even more monetary
stimulus to encourage a strong round of
wage rises this spring. Investors appear
to expect more stimulus: the stock mar-
ket rallied sharply after heavy falls last
week, with the Nikkei 225 closing 7.16
per cent higher for one of its biggest one-
day gains on record.
Yoshihide Suga, Japan’s chief cabinet
secretary, blamed an exceptionally
warm winter for the weakness of con-
sumption. “The economic fundamen-
tals are good,” he said. “We expect a
steady recovery in business conditions.”
Health. Sweetened beverages
But Harumi Taguchi, principal econo-
mist at IHS Global Insight in Tokyo, said
spending on cars and other durables
was sluggish as well. “The bottom line is
weak wage growth,” she said, arguing
1.4% 3.4%
Annualised drop Annualised
in fourth-quarter decrease in
growth. A fall of exports, but
1.2% was forecast imports fell faster
that consumers were saving to prepare
for an anticipated rise in consumption
tax next year. Ms Taguchi forecast
growth would turn positive in the next
quarter as the weather effect faded but
would stay modest for most of the year.
In a sign of how badly Abenomics has
struggled, growth for the full year of
2015 was 0.4 per cent, following a year of
zero growth in 2014. That is roughly in
line with Japan’s long-run growth poten-
tial, suggesting little progress towards
using up spare capacity in the economy,
essential to driving inflation upwards.
Third-quarter growth had previously
been revised from an annualised fall of
0.8 per cent to an annualised rise of 1.3
per cent, avoiding a technical recession.
Consumption in the fourth quarter
fell at an annualised rate of 3.3 per cent
in the quarter. Public investment was
also weak — showing how fiscal stimulus
at the start of Abenomics has turned
into austerity — contracting at an annu-
alised rate of 10.3 per cent.
Business investment had a good quar-
ter, however, rising at an annualised rate
of 5.7 per cent. There was also a positive
contribution from trade despite the
slowdown in China. Exports fell at an
annualised pace of 3.4 per cent but,
driven by the weakness of oil and com-
modity prices, imports fell even faster.
Two weeks ago the Bank of Japan sur-
prised markets by cutting interest rates
to minus 0.1 per cent in an effort to show
its commitment to generating inflation
of 2 per cent. Price rises are currently
running close to zero.
Despite the BoJ’s action, however,
weakness elsewhere in the world econ-
omy led to a further yen appreciation.
Yen strength makes it harder to rely on
exports and business investment as
engines for the economy and the fourth-
quarter numbers show consumption at
home is not ready to take up the slack.
much weaker
than expected
amid falling
global demand
BEN BLAND — HONG KONG
China’s trade contracted significantly
more than economists had expected in
January, as the country’s economy con-
tinued to suffer from weak global
demand and a slowdown at home.
Exports fell 11.2 per cent year on year in
dollar terms, compared with forecasts
for a decrease of 3.6 per cent, while
imports slid 18.8 per cent, against
expectations of a 1.8 per cent fall,
according to government data released
yesterday.
China, the world’s biggest exporter,
saw particularly steep declines in ship-
ments to Southeast Asia and the EU,
down 18 per cent and 12 per cent respec-

Soft drinks lose fizz in Asia’s war on sugar
Indonesia, the Philippines and
India look at tax measures as
soda industry backlash grows
AVANTIKA CHILKOTI — JAKARTA
Some of Asia’s biggest soda-guzzling
nations are preparing to impose taxes
on fizzy drinks as the backlash against
theindustrymountsinamovementrem-
iniscentoftheanti-tobaccocampaign.
The $560bn global soda industry has
come under attack as doctors and poli-
cymakers fret about the rising toll — on
health as well as government coffers —
of obesity and diabetes. A sugar tax in
Mexico has cut the consumption of sug-
ary drinks by an estimated 12 per cent
and raised more than $2bn in tax
receipts. Berkeley in California, France
and Chile have introduced similar taxes.
The UK has scrapped plans to introduce
a sugar tax of up to 20 per cent but com-
panies will be expected to reformulate
their products to reduce sugar content.
Many liken the threat of greater taxes
and regulation with curbs on tobacco —
and say they could prove just as detri-
mental to the likes of Pepsi, Coca-Cola
and others. But, while cigarette makers
have mitigated the impact of regulatory
burdens in the rich world by ramping up
emerging market sales, moves in Asia
suggest the war on sugar may prove
more globally consistent.
Governments are looking to imple-
ment some form of tax in Indonesia,
India and the Philippines, where the soft
drinks industry is worth an aggregate
$18bn, according to research group
Euromonitor, making it a vast potential
market still only a fifth of the size of
western Europe’s.
Proposals are most advanced in the
Philippines, where the House of Repre-
sentatives is set to rule on introducing a
10 per cent excise tax on all sugar-sweet-
ened drinks. “In India and Southeast
Asia the prevalence [of obesity] is lower
[than in Europe and the US] but the
increase in prevalence over the past dec-
ade in many cases is alarming,” says
Bruce Lee at the Johns Hopkins Bloomb-
erg School of Public Health.
Talks are at an earlier stage in Indone-
sia, which scrapped a “luxury tax” on
sweetened drinks in 2004, and India,
where a government committee led by
chief economic adviser Arvind Subra-
Liquid assets: a manian recommended a 40 per cent
soft drinks levy in December.
vendor plies his Drinks makers are braced for a dent
trade in New in sales if the measures go through.
Delhi. Proposals Mexico, which introduced a tax on sug-
in India target ary drinks and junk food two years ago,
aerated drinks has become the benchmark for other
made by emerging markets. But analysts caution
multinationals any measures could have other
such as Pepsi unwanted consequences, deterring
and Coca-Cola investments from multinationals that
Leber/ullstein bild via Getty
governments have been eager to attract.
Some warn the measures in India let
domestic brands off the hook. The
added duty targets aerated drinks, a cat-
egory dominated by multinationals
such as Pepsi and Coca-Cola; packaged
juices, which are largely produced by
local companies such as market leader
Dabur, would not be affected. “The
agenda is not transparent and my hunch
is there is an element of protectionism,”
says Saurabh Mukherjea at Ambit Capi-
tal, the Mumbai-based brokerage.
Coca-Cola in India has attacked the
suggested taxes as being detrimental to
Prime Minister Narendra Modi’s “Make
in India” campaign to draw foreign
investors, adding the group and its bot-
tlingpartnerscreateabout200,000jobs.
In Indonesia, where producers fight
slowing growth and currency volatility,
the tax proposals are expected to deal a
further blow. New brands such as Peru-
vian Big Cola have heightened competi-
tion and industry lobby groups say any
extra tax would throttle the market.
“The category is still very small,” says
Triyono Prijosoesilo at the Association
of Indonesian Soft Drink Producers.
“People change their choice of beverage
easily — if they feel that a packaged tea
becomes very expensive, they can
switch into water or non-packaged bev-
erages.” Industry analysts further ques-
tion whether a tax would deter Indians
tively compared with the same period a
year earlier.
The figures also revealed an unex-
pected 108 per cent jump in imports
from Hong Kong, which economists
flagged as another indication that Chi-
$560bn nese companies were over-invoicing
Size of the global imports in order to move money out of
soda industry, the country — a popular method used to
which has come
under attack
avoid restrictions on capital outflows.
But the impact of that outflow was
dwarfed by the size of the record trade
$2bn surplus of Rmb406bn ($63bn) reported
Amount a sugar by China in January.
tax has raised “Globally there is a lack of demand
in Mexico and that is reflected in the Chinese sta-
tistics,” said Dong Tao, an economist at
10% Credit Suisse in Hong Kong. “The Chi-
Amount of
nese export share in global trade is not
excise tax the declining much and this indicates that
Philippines is despite much softer trade data com-
set to introduce pared to a few years ago, it’s a global
on all demand issue rather than a competi-
sugar-sweetened tiveness issue.”
drinks
While external demand was weak,
China’s domestic economy was also fac-
40% ing a bleak outlook, Mr Tao said.
Amount of “China’s economy is in a cyclical
levy a downturn but it will probably take
government structural reforms to get Chinese
committee in
India growth back,” he said. “Progress on the
recommended reform side has been slow and will prob-
be imposed on ably continue to be slow, which will drag
sweetened drinks down growth further.”
Worries about Chinese growth have
driven some investors to bet against the
renminbi and prompted a jump in capi-
tal outflows in recent months.
But economists say that the continu-
ing trade surplus should help to reduce
some of the downward pressure on the
currency, alongside comments made at
the weekend by Zhou Xiaochuan, the
‘There is and Indonesians who tend to add sugar governor of the People’s Bank of China,
to traditional unpackaged drinks. “Even who said there was no need for a devalu-
evidence tea in Indonesia is with sugar,” says Ade ation.
that sugar is Elimin at PwC in Jakarta. “Indonesians Yesterday, the onshore-traded ren-
love sugar — they like sweet drinks. minbi saw its biggest one-day gain in
both an In India 70m adults have diabetes, the more than a decade, increasing by as
acquired world’s highest number behind China. much as 1.2 per cent against the dollar
Experts warn the associated health- on the first day that Chinese markets
taste and care costs can be ruinous. World Health have opened since the lunar new year
potentially Organisation estimates suggest the fam- holiday.
ily of a low-income Indian adult with “The record level trade surplus indi-
addictive’ diabetes could spend as much as 25 per cates that China continued to run a large
cent of their income on care. current account surplus, and this should
Bruce Lee, With growing evidence of the harms help offset some of the capital outflow
Johns Hopkins
Bloomberg of sweetened food and drink, experts and alleviate some depreciation pres-
School of Public emphasise the importance of discourag- sure on the renminbi,” economists at
Health ing consumption when the industry is ANZ wrote in a note.
still fledgling — as it is in much of emerg- “This is also consistent with the PBoC
ing Asia. “There is evidence that sugar is governor Zhou Xiaochuan’s comments
both an acquired taste and potentially over the weekend that China does not
addictive,” says Mr Lee at Johns Hop- face large depreciation pressure and
kins. “It is best to act before you even does not need to depreciate the cur-
acquire the habit.” rency to boost net exports.”

Spent fuel

South Australia considers storing imported nuclear waste

JAMIE SMYTH — SYDNEY
It is a problem that has bedevilled the
nuclear industry since its foundation:
what to do with the tens of thousands of
tonnes of radioactive waste created
every year?
Yesterday the state of South Australia
offered a partial solution with a govern-
ment report suggesting imported
nuclear waste could earn it A$5bn
(US$3.5bn) a year. “An integrated stor-
age and disposal facility would be com-
mercially viable and the storage compo-
nent could be operational in the late
2020s,” said the preliminary findings of
a royal commission report.
Such a facility could take 13 per cent
of the world’s high-level nuclear waste,
deliver reputational benefits to Aus-
tralia for helping countries solve a criti-
cal problem and provide financial
returns, it said.
The report is part of South Australia’s
efforts to overturn decades of public
opposition to nuclear energy and create
an industry that helps its economy tran-
sition from a downturn in manufactur-
ing and mining. Malcolm Turnbull, Aus-
tralia’s prime minister, has welcomed
the debate. Australia has a third of the
world’s known uranium but has not
developed its own nuclear industry
because of public concerns and plentiful
alternative fuels such as coal and gas.
“Nations have not been able to find a
disposal solution that meets their geol-
ogy,” Kevin Scarce, royal commissioner,
told a press conference. “National con-
sensus is that deep geological storage is
the right solution for spent fuel, kept
isolated from the environment for hun-
dreds of thousands of years.”
In 2015 there were 390,000 tonnes of
high-level nuclear fuel and reprocessed
Nuclear waste from France nears New South Wales in December
waste and about 9.9m cubic metres of
intermediate-level waste in storage
worldwide. Much of this is stored in
cooling ponds near nuclear plants
rather than long-term dry repositories,
which are safer. By 2090 it estimates the
level of used nuclear fuel will almost tri-
ple as dozens of new power plants come
online in the UK, India and China.
The report found South Australia had
a unique combination of attributes that
made it an attractive location for the
safe, long-term disposal of nuclear fuel.
These include a stable geological envi-
ronment, very low levels of seismic
Saeed Khan/AFP/Getty
activity, an arid environment, a stable
political environment and a pre-exist-
ing framework for securing long-term
agreements with property owners and
the broader community.
“If you were looking at one place in
the world to put a nuclear storage facil-
ity it would probably be Australia,” said
Daniel Morgan, commodities analyst at
UBS. “South Australia is suffering due to
the mining downturn and is seeking
alternative sources of income.”
Amid a collapse in global uranium
prices following the 2011 nuclear disas-
ter in Fukushima, Japan, BHP Billiton in
2012 shelved a multibillion-dollar
expansion of its Olympic Dam copper
and uranium mine in South Australia.
Two other uranium mines in the state
have also been mothballed.
South Australia’s push to create a
nuclear industry is likely to face stiff
resistance from green groups.
“The commission has no idea which
countries may want to export to Aus-
tralia or what they would pay,” said Jim
Green, Friends of the Earth national
nuclear campaigner.
“There is no sound basis to the reve-
nue figures in their report.”
Tuesday 16 February 2016 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 16 February 2016

INTERNATIONAL

Presidential election Syria

Uganda’s leader risks unrest among Suspected

Russian strikes
young voters fearful for their future on hospitals
leave peace
Post-poll violence feared if
plan in danger
Museveni wins and does
not address grievances ERIKA SOLOMON — BEIRUT

Suspected Russian air strikes hit three

JOHN AGLIONBY — KAMPALA
When Ugandans elect their president on
Thursday, Yoweri Museveni will face the
toughest electoral test in his 30 years in
power — from young voters fearful for
their future.
In a country with a history of electoral
fraud and rampant corruption, even
some Museveni supporters warn an
increasingly well-educated youth might
turn violent to oust one of Africa’s long-
est-serving rulers if he is suspected of
stealing the election.
The 71-year-old Mr Museveni, who in
theory cannot serve more than one
more five-year term, has promised to
crush any demonstrations against the
election result. But if grievances are not
addressed, prolonged unrest could not
only destabilise Uganda. It could spread
to troubled neighbours that include
South Sudan, Burundi, Democratic
Republic of Congo and Somalia.
In Somalia thousands of Ugandan
troops are part of the African Union
force fighting the Islamist militant
group al-Shabaab while Mr Museveni is
leading international efforts to end
Burundi’s 10-month political crisis.
Thus far the opposition has adopted
peaceful campaigning tactics. But yes-
terday Kizza Besigye, seen as the most
‘We don’t believe
[Museveni] will stop. He
loves being in power, he
doesn’t want to leave’
popular of the seven challengers to Mr
Museveni, was detained for several
hours and his supporters were tear-
gassed as they tried to campaign in the
heart of Kampala, the capital.
Such intimidation could threaten
Uganda’s relative stability. “In Egypt
people rose up because their pain out-
weighed their fear,” says Brian Sse-
jjemba, 26, an opposition activist in
Mukono, a town 30km east of Kampala.
“Here people’s fear still outweighs their
pain. I don’t know how long it is going to
take to change that.”
Uganda’s economy appears in relative
good health. Growth is still well above
5 per cent, interest rates are set to fall
and the benefits of infrastructure
investment, particularly in roads and
power generation, are starting to be felt.
But the statistics hide the effects of
one of the world’s fastest-growing popu-
lations. More than half Uganda’s 39m
citizens are aged under 16 and another
quarter are aged between 16 and 30.
And the ranks of the young are swelling
rapidly. The UN estimates the popula-
tion will more than double by 2040 and
hit 100m by 2050.
Few young people are finding gainful
employment: some 700,000 reach
hospitals in northern Syria yesterday
morning, medics and activists said, in
new attacks on civilian targets that
could threaten a fragile ceasefire plan
for the country.
Within the space of three hours, activ-
ists say the hospitals — two in Idlib prov-
ince and one in Aleppo province — were
hit by aircraft or missiles thought to be
Russian. The number of casualties is
still unclear, but the Syrian Observatory
for Human Rights monitoring group
reported that dozens were believed
dead or wounded in Idlib.
A Syrian ceasefire deal agreed by the
International Syria Support Group
(ISSG) is set to begin on Friday but it
looks close to collapse before it has even
got under way as attacks on civilian tar-
gets continue.
Russia says that even with a ceasefire,
it will continue strikes in the northern
Aleppo province, where it is backing an
offensive by president Bashar al-Assad’s
forces on rebel-held territory.
Deputy foreign minister Gennady
Gatilov told Germany’s Der Spiegel the
strikes were targeting “terrorist groups”
and therefore legitimate.
Médecins Sans Frontières (MSF) said
a hospital it supports in the town of al-
Hamidiya, Idlib, was hit four times.
“This appears to be a deliberate
attack on a health structure,” said Mas-
similiano Rebaudengo, MSF’s head of
mission, who said this deprived the local
population of all “access to medical
services in an active zone of conflict”.
An hour later, activists reported that
air strikes hit the central hospital in the
Idlib town of Maarat al-Numan.
Popular working age every year but the formal money], they will be a bold and angry in remote areas and some people believe Ahmad Dibais, a hospital director
challenger: economy absorbs fewer than 2 per cent group [at the next election] in 2021 and the only way to secure a job is to back with the Union of Medical Care and
opposition of them. While subsistence farming and won’t listen to anything or anyone. They the charismatic former guerrilla fighter. Relief Organisations (UOSSM) said at
leader Kizza the informal economy provide incomes might precipitate change earlier.” “You have to have connections to get a least nine medics at the MSF hospital
Besigye for many people, analysts are con- “Earlier” might be as soon as this job in this country and that’s going to get were believed to have been killed.
addresses cerned about what will happen if more weekend if the election result is per- more important as more people chase Tens of thousands of Syrians have
supporters at jobs do not materialise. ceived to have been rigged. Mr Besigye fewer jobs,” said Umar Yawe, 20, a mem- been on the run since Mr Assad’s forces
a rally near “These people have to earn money. insists he can win despite the latest ber of the NRM youth brigade. began an offensive against the rebel-
Kampala on They’re literate, they’ve been to school opinion poll, by international research Others say they will vote as their held areas of Aleppo province, under
Sunday and don’t see a bright future,” said Rob- group Ipsos, putting him at 28 per cent elders tell them to. “My grandparents the cover of Russian air power. Already
Ben Curtis/AP
ert Kabushenga, chief executive of the and Mr Museveni on 53 per cent. like Museveni because he brought secu- several hospitals, bakeries and schools
Vision Group, Uganda’s largest media “We have the numbers,” Mr Besigye rity after years of war and fighting,” said have been razed in shelling.
house that is supporting Mr Museveni. told the FT as he campaigned in Kam- Rogers Kayango, who runs a commu- In Aleppo province’s northern border
“If you don’t allow them to [earn pala’s suburbs last week. “We will resist nity website in Mukono district. “We town of Azaz, the Women and Children’s
all attempts by Museveni to steal this know we need a better life and we’re Hospital was also targeted. Activists say
election from us.” oppressed but I respect my grandpar- two ground-to-ground missiles struck
S O U T H S U DA N ETHIOPIA His boast is impossible to prove but ents.” outside the facility, but their reports
genuine levels of popularity are also The constitution prohibits anyone could not be confirmed.
hard to gauge. It appears that Mr over 75 running for the presidency but The Syrian Observatory for Human
Museveni is not as popular as he once Mr Museveni has already amended the Rights said 10 people were killed,
D E M O C R AT I C was. In the 2011 election, which interna- constitution once, to remove term lim- including three children.
REPUBLIC UGANDA SOMALIA
tional observers said was neither free its, and many Ugandans believe he will Medics running hospitals in rebel-
OF CONGO K E N YA nor fair, he won 68 per cent of the vote. seek to stay in power well beyond 2021 held Syria called for more international
Justine Lumumba, secretary-general — emulating neighbours like Paul Kag- pressure to stop attacks on facilities.
Kampala of the ruling National Resistance Move- ame in Rwanda, where the constitution These are not only hampering their abil-
ment, said last month that young people has been changed to give the president ity to treat the wounded in Syria’s five-
INDIAN who protested against the election up to three additional terms. year civil war but could also lead, they
R WA N DA OCEAN
result risked being shot. “We don’t believe he will stop,” Mr warn, to a wider health crisis as disease
TA N Z A N I A 300km
But while Mr Museveni’s support is Kayango said. “He loves being in power, spreads.
BURUNDI
ebbing, the opposition is barely present he doesn’t want to leave.” Policy dare not speak its name page 9

Transparency. Annual accounts Energy

Nigeria oil takes big step towards cleaning up its act
NNPC. We want to be as transparent as
State company notorious for possible.”
inefficiency and suspected Questions about NNPC’s business
practices had raged for years. The scale
theft opens up its books of alleged losses of state oil revenue
through mismanagement and fraud
under the administration of President
ANJLI RAVAL — LONDON
MAGGIE FICK — ABUJA Goodluck Jonathan was exposed by
former central bank governor Lamido
Nigeria’s state oil company has not Sanusi, who said he had proof that
reported annual financial data on its Nigeria was losing as much as $1bn a
profits, losses or spending for a decade. month — at a time when oil production
But eight months after the election of was down only marginally and prices
President Muhammadu Buhari, the were steady. A subsequent audit by
Nigerian National Petroleum Corpora- PwC, the professional services firm,
tion, which oversees production of 1m found that billions of dollars were unac-
barrels of oil a day, has promised to counted for in the company’s 2012 and
come clean. On its official Twitter feed, 2013 accounts, adding credence to the
the NNPC has begun posting monthly suggestion that NNPC was diverting rev-
updates of its financials and this month enues from state coffers.
published a 38-page report covering its The 2015 unaudited accounts are not
2015 activities — the first annual state- much prettier. The new management,
ment since 2005. appointed only in August, has not yet
It is a big step for an entity that has been able to stop the haemorrhaging,
become notorious for inefficiency and especially when oil is very cheap.
mismanagement, not to mention sus- The figures show a loss of 267bn naira,
pected outright theft of the oil wealth of or $1.3bn, in 2015, stemming largely
Africa’s biggest producer of crude. from the refining division. Last year,
The NNPC said the effort to produce three out of the four state-owned refin-
and publish financial reports online eries were closed for seven months
began shortly after the president because of maintenance and vandalism.
appointed Ibe Kachikwu, a former Exx- For all the report’s professed trans-
onMobil executive, to lead an entity parency, experts say there are gaps that
responsible for managing the country’s conceal vital revenue streams. Mr
largest revenue stream. Alegbe acknowledged the report was a
“Before, nobody could even see what work in progress. Of particular concern
our books were like, whether we were is the opacity around oil and fuel sales,
operating at a loss or . . . at a profit,” which are worth billions of dollars a year
said spokesman Ohi Alegbe. “It’s a new and are Nigeria’s main source of income.
Nigeria is dependent on oil for about
two-thirds of state revenues and is
among the countries worst affected by
the plunge in international crude prices
to below $30 a barrel in January — a level
last seen in 2003. The NNPC’s practice
of withholding money from domestic
crude sales that should be paid into fed-
eral coffers had in recent years “been
the largest single point of public revenue
loss”, according to Aaron Sayne, co-au-
thor of a Natural Resource Governance
Institute report last year. The report
estimated shortfalls of $6bn a year
between 2010 and 2013.
A chart in NNPC’s 2015 report shows
the total sales value through November
at 1.67tn naira, but lists the payments
the NNPC remitted to the treasury at
987.5bn — a shortfall of 689.2bn. Indus-
try executives say, however, it is unreal-
istic to expect one-for-one equivalence
267bn 689.2bn
Amount in naira, Shortfall in naira
or $1.3bn, lost in between sales
2015, mainly from value and NNPC’s
refining division listed payments
between the barrel entitlement of the
government and the amount it receives
in dollars from the NNPC, which has
joint ventures with domestic and for-
eign oil companies.
Mr Alegbe said that, by law, the com-
pany was also allowed to hold on to reve-
nue to cover operating and production
costs. This could vary to take into
account discretionary amounts associ-
ated with refinery breakdowns or
attacks on pipelines, he said.
There are no clear rules governing
how much revenue the NNPC can with-
hold. For years, “the NNPC has had
nearly unfettered discretion over its
own spending”, said Mr Sayne.
The way the NNPC remits revenues to
the government should change dramat-
ically after passage of an oil reform bill
now being drafted, Senate president
Bukola Saraki told the Financial Times.
The “Nigerian oil company . . . will run
like a limited liability company with a
board and make its returns to share-
holders, of which one is the govern-
ment”, he said. “No one will be going and
reaching and taking from the company.”
The NNPC’s nod to transparency
comes amid other initiatives to over-
haul the oil sector. Mr Kachikwu has, for
example, cancelled opaque “swap”
deals through which crude cargoes were
exchanged for refined imports without
money changing hands. Efforts are also
under way to get decrepit refineries
working and to end the costly practice of
shipping crude from fields to refineries
instead of through secured pipelines.
Court casts doubt over Israel’s
Leviathan offshore gas project
JOHN REED — JERUSALEM
Israel’s $6.5bn Leviathan offshore gas
project has been thrown into doubt
after the country’s supreme court chal-
lenged Benjamin Netanyahu’s decision
to circumvent the Knesset by drafting a
framework to jump-start investment.
Shares in energy companies fell 3 per
cent in Tel Aviv yesterday, a day after
the rightwing Israeli prime minister
made an unprecedented appearance in
the supreme court to defend the gas
plan, which has faced stiff resistance.
Left-of-centre opposition parties and
non-governmental groups had peti-
tioned the court to block it.
The Israeli leader, who assumed the
role of economy minister last year to
push through the gas framework,
warned of “grave consequences” if there
were further delays in developing Levia-
than. “We have undermined the energy
companies’ confidence in us, as well as
that of the international banks that are
supposed to finance the investments,
and that of countries who are supposed
to be customers for Israeli gas,” Mr
Netanyahu told the court.
The gasfield, one of the largest in the
eastern Mediterranean, was discovered
in 2010. However, its development has
been delayed by red tape — including a
challenge in 2014 from Israel’s antitrust
commissioner — and a political back-
lash from Israelis who accuse their gov-
ernment of giving investors too gener-
ous a deal at a time when gas prices are
low.
Industry executives and legal experts
said the next move was likely to come
from the supreme court, which could
either block the stability clause — and
with it the gas plan — or allow it to go
ahead, while voicing its reservations.
The US government has pressed Israel
to push forward with its gas plan. Hou-
ston-based Noble Energy and Israeli
companies in the Leviathan consor-
tium, led by Delek Drilling, have threat-
ened to pursue claims in arbitration if
the country backs out of it.
Leviathan’s partners have reached
tentative agreements to sell gas to cus-
tomers in Egypt and Jordan, and have
spoken to potential buyers in Turkey.
Noble and Delek, along with Mr Netan-
yahu’s government, claim the project
could have a benign geopolitical effect in
a volatile region where Israel has poor
relations with many of its neighbours.
“If we go backwards, we’ll fall into the
abyss,” the Israeli leader warned. “The
investors won’t wait for us; they’ll go
elsewhere, to our enemies.” Israeli offi-
cials have voiced fears that the opening
of Iran’s larger gas sector post-sanctions
could cause energy companies to bypass
Israel. In addition, Egypt discovered
Zohr — a large offshore field — last year.
But, the court challenged a “stability”
clause in the framework, which prom-
ised investors they would not be hit by
regulatory changes for at least a decade.
Tuesday 16 February 2016 ★ FINANCIAL TIMES 7

FT BIG READ. ASIAN FINANCE SCANDAL

Malaysia’s state investment fund is at the centre of billion-dollar investigations stretching from Kuala Lumpur to
the Caymans and from Abu Dhabi to New York in a case that threatens to expose loopholes in global finance.
By Michael Peel and Jeevan Vasagar

The 1MDB money trail

T
he chief executive of BSI,
the Swiss private bank, was
jubilant about its foray into
Asia. So much so that he
wrote to a star employee in
Singapore who had helped lead the
effort. “I wanted to personally thank
you for your immense contribution not
only to the growth of our new Asia busi-
ness, but to BSI Group as a whole,”
enthused the December 2011 letter
from Alfredo Gysi, who is now BSI’s hon-
orary chairman.
What a difference four years makes.
Today that same bank official in Singa-
pore, Yak Yew Chee, is battling a crimi-
nal investigation by the city-state’s
authorities on suspicion that he bene-
fited “from criminal conduct”.
At issue are transactions allegedly
linked to the very company that helped
him earn his boss’s gratitude and more
than S$27m ($19m) in pay and bonuses
since 2011: Malaysia’s 1MDB state
investment fund, which is at the centre
of a growing international scandal over
claims of the misappropriation of bil-
lions of dollars. Mr Yak denies wrongdo-
ing. BSI declined to comment, other
than to say it would co-operate with the
authorities, when and if requested.
The letter was part of a bundle of doc-
uments disclosed this month that
undermined the Malaysian govern-
ment’s effort to contain the 1MDB scan-
dal. The papers emerged after Mr Yak
began proceedings to transfer money
back to Singapore to pay tax and legal
bills. He withdrew the claim after
authorities agreed to allow him to bring
in funds. The case came a week after
Swiss authorities said their investiga-
tions into suspected bribery involving
former 1MDB officials and others had
found “serious indications” that $4bn —
earmarked for development projects —
had been misappropriated from Malay-
sian state companies.
At the same time Najib Razak, Malay-
sia’s prime minister, is under pressure to
explain the $680m that ended up in his
personal bank account, officially from
the Saudi royal family. The prime minis-
ter says it was a political contribution
and denies it is linked to 1MDB. The rev-
elation of the payment, however, has
rocked Southeast Asia’s third-largest
economy and threatens the near six-
decade rule of the governing United
Malays National Organisation.
It is not just a matter of domestic poli-
tics. The impact of the cases is being felt
way beyond Malaysia’s borders due to
the amount of money allegedly involved
and its scope. The parties said to be
affected include foreign officials, lead-
ing banks and offshore financial centres,
with transactions stretching from Kuala
Lumpur to the Cayman Islands and
from Abu Dhabi to New York.
1MDB has become a test of regulators’
ability, and desire, to penetrate a web of
dealings that take full advantage of the
privacy and cross-border complexity
available in the global financial system.
It is also being seen as a measure of how
well authorities deal with cases of sus-
pected grand corruption. Laws have
been tightened worldwide to force regu-
lators and companies to gather more
ownership information, in the wake of
scandals such as the looting of billions of
dollars from Nigeria by General Sani
Abacha, the late dictator.
“Do the banks in the 1MDB case have
that information — and do the authori-
ties have the political will to investigate
this properly?” asks Prof Jason Shar-
man, a governance specialist at Aus-
tralia’s Griffith University. “The other
thing is, if the transactions were as sus-
picious as they look, what the hell were
the banks doing accepting the money?”
Growth plan
At the heart of the 1MDB affair are two
overlapping failures of governance: in
Malaysia, where political power has
increasingly been centralised; and in the
global financial architecture, where it
appears that opaque corporate struc-
tures remain open to abuse.
The country’s politics have long been
greased with money — cash handouts to
voters are a standard tactic at election
time — while political power is concen-
trated in the hands of a small network.
The prime minister is also head of the
finance ministry, an unusual combina-
tion of roles, which has been the norm in
Malaysia since the era of Mahathir
Mohamad, the long-ruling premier who
modernised the country while also
holding it in an authoritarian grip.
$680m
The amount transferred to Najib Razak’s
bank account by the Saudi royal family,
according to the Malaysian attorney-
general
$2.3bn
Claimed value of 1MDB
investments in a Cayman
Islands fund in 2012
1MDB was born out of a resurgent
‘If the appetite for emerging markets follow-
ing the global financial crisis. Launched
transactions in 2009, it benefited, along with other
parts of Malaysia’s economy, from capi-
were as tal inflows as central banks in industr-
suspicious ialised states took extraordinary meas-
ures to rescue the global financial sys-
as they look, tem. Originally a regional wealth fund,
1MDB was taken over and renamed by
what the the finance ministry. It is a project
hell were closely linked with the dapper Mr Najib,
who still chairs its advisory board.
the banks The official aim was for 1MDB to
doing make investments that promoted eco-
nomic growth, but with a twist: unlike
accepting most sovereign wealth funds, it did not
start with a big pile of cash. From the
the money?’ outset, 1MDB’s business model was built
on raising debt to acquire assets, ranging
from power generation to land, with
some of the property being given to it at
nominal prices by the government.
Goldman Sachs was heavily involved
in the capital raising and arranged three
bond sales in 2012 and
2013 for the fund,
including a transac-
tion in which it col-
lected a fee worth
nearly $300m on a
$3bn issue. The Wall
Street bank has denied any wrongdoing.
1MDB’s debts ballooned — rising to
more than $11bn by March 2014, the last
financial snapshot available — amid
questions over both the fate of the
money and the fund’s ability to pay the
interest on its loans.
The Swiss authorities suspect crimi-
nal conduct via a “systematic course of
action carried out by means of complex
financial structures”, relating to five
companies linked to 1MDB. Two of the
businesses referred to directly or indi-
rectly — Aabar Investments, the Abu
Dhabi state investment vehicle, and
PetroSaudi, an oil company — had joint
ventures with the Malaysian fund. The
Swiss did not say that either PetroSaudi
or Aabar were themselves under inves-
tigation. PetroSaudi has denied any
wrongdoing and says it is not being
probed. Aabar also denies wrongdoing
and is awaiting the results of a review of
its 1MDB entanglements by Ipic, its par-
ent company.
The PetroSaudi venture illustrates the
opaque nature of the 1MDB money trail.
When the venture was ended in 2012,
1MDB used its share of the proceeds to
buy investments purportedly worth
more than $2.3bn in a Cayman Islands-
registered fund that had been incorpo-
rated just a month earlier. KPMG,
1MDB’s auditor, raised concerns about
the Cayman Islands investment,
according to a draft report by Malaysia’s
auditor-general completed last year.
1MDB later sacked KPMG. Neither the
fund nor the accounting firm have com-
mented on the episode.
International scope
Many of the transactions suspected of
being linked to 1MDB that are under
investigation are said to have been
routed through international banks. A
small portion was sent to accounts held
in Switzerland by former Malaysian and
UAE public officials, according to Swiss
investigators. Singapore is investigating
possible money laundering offences and
has frozen at least 12 bank accounts. The
US justice department is scrutinising
New York luxury property sales sus-
pected of being linked to the 1MDB
scandal and is also probing the $680m
payment to Mr Najib.
The 1MDB affair has come to light at a
time when global regulators are taking a
sterner view of the theft of state assets.
In particular, Switzerland — still criti-
cised by many over the high levels of
privacy in its banking system —
claims it is now vigorous in
tracking down and return-
ing stolen funds.
Domestically, the
prime minister’s tight
grip on power allows
him to defy his foes. His
$4bn
Amount of money earmarked for social
and economic development projects that
the Swiss allege has been misappropriated
from Malaysian state companies
$11bn
1MDB’s debts by March 2014,
the last financial statement
available
government last year forced a succes-
sion of critics and people involved in
1MDB-related investigations from their
posts. They included Muhyiddin Yassin,
the deputy premier, and Gani Patail, the
attorney-general, who retired suddenly
on ill-health grounds. Several members
of parliament’s public accounts com-
mittee were promoted to government
jobs, stalling their investigation.
Newspapers were suspended, opposi-
tion MPs banned from travel and two
people who had been lobbying for for-
eign investigations of the case were
detained and later released. The central
bank announced last year it had called
for criminal prosecution of 1MDB, only
to be overruled by Mohamed Apandi
Ali, the new attorney-general.
National security legislation, rushed
through parliament in December,
allows the prime minister to suspend
restraints on police powers under cer-
tain conditions. Even social media, one
of the few remaining outlets for dissent,
is being monitored. Malaysian police
recently tweeted a warning to an artist
who posted a caricature of Mr Najib in
clown’s make-up.
“Najib is like the emperor with no
clothes,” says Tian Chua, an opposition
MP. “People are afraid that their heads
will be chopped off, so they just keep
quiet and praise the emperor.”
Arul Kanda, a Malaysian banker who
had worked in Abu Dhabi and London,
was appointed as 1MDB’s president last
year to deal with its cash flow and debt
problems. He has launched a multibil-
lion-dollar fire-sale of many of its main
power and property assets.
The government and 1MDB insist the
allegations are false and politicised
while the attorney-general appointed by
Mr Najib delivered what seemed to be
the coup de grâce against the pre-
mier’s enemies. He cleared
him of wrongdoing over
the case of the payment
to his bank account,
and Mr Najib urged
people to “unite and
move on”.
It has not worked
out that way. The unusually forthright
Swiss statement suggests Mr Najib and
his allies may have overplayed their
hand. The announcement appears to be
a direct response to fears that the
Malaysian government was trying to
bury the case. Investigators in Bern and
elsewhere may have been particularly
surprised to hear an elected head of gov-
ernment argue, as Mr Najib did, that a
probe into mysterious payments of
$680m to him had been an “unneces-
sary distraction”.
Brutal politics
1MDB’s troubles have added to wider
Life & times economic problems for Malaysia. The
plunging global oil price has forced the
government to trim its spending plans,
2009 while the ringgit has tumbled and con-
April Najib Razak
becomes Malaysia’s sumer debt has notched regional highs.
prime minister The next election due by 2018 promises
September The to be a brutal affair, after the opposition
newly created 1MDB won the popular vote in the 2013 poll
announces launch of and claimed it was denied a parliamen-
$2.5bn joint venture tary majority only by government
with PetroSaudi
International gerrymandering.
Speculation about Mr Najib’s future is
2012 growing. He has also been named in a
1MDB issues two
French inquiry as a suspected recipient
$1.75bn bonds to buy
of bribes in a submarine deal he oversaw
power assets from
Tanjong Energy and when he was defence minister in 2002.
Genting Group He denies any wrongdoing.
2013 In the short term, he has a sensitive
March 1MDB issues trip to a summit between the US and
$3bn bond to fund a Southeast Asian countries in Sunny-
joint venture with lands, California which began yester-
Aabar Investments of day. Neither President Barack Obama
Abu Dhabi.
May Mr Najib’s
United Malays
nor Mr Najib, who played a round of golf
together in Hawaii in December 2014,
mentioned the 1MDB affair or the pay-
National
ments to the prime minister directly in
Organisation retains
power after statements they issued after they met in
controversial general Malaysia last year. But the case is
election in which becoming harder for the US administra-
opposition alleges tion to ignore, even if it still has a strong
ballot-rigging
2014
interest in courting Malaysia over the
Trans-Pacific Partnership trade deal,
March 1MDB’s debts antiterrorism efforts and security in the
climb above $11bn South China Sea.
2015 In the longer term, Mr Najib’s allies
1MDB announces the
sale of about $4bn of
dismiss claims that he’s negotiating an
exit in exchange for some kind of immu-
assets to deal with
cash flow and debt
nity from prosecution. Many analysts
and even opponents echo his support-
crisis
ers’ argument that he is more secure
July Reports emerge
that Mr Najib
now than he was a few months back.
Ibrahim Suffian, director of the Mer-
received transfers of
$680m from
deka Center, a Malaysian polling
unnamed foreign agency, says the prime minister’s ratings
donors in his have “tumbled” as a consequence of the
personal bank 1MDB affair and the weakening econ-
account. He denies omy, but his position has remained
wrongdoing robust. “He has strong control over his
2016 own party, which allows him to sideline
January Swiss any individual who is critical of him,”
investigators reveal says Mr Suffian. “The next election is a
‘serious indications’ challenge for the ruling party, but it has
that $4bn has been tremendous resources and a frag-
misappropriated
from Malaysian state mented opposition which isn’t able to
companies provide any kind of alternative.”
Mr Najib’s supporters insist he has
done nothing wrong and that he will
lead the governing party to yet another
election victory. The question now is
whether he will survive long enough to
lead UMNO into the election or will he
be overwhelmed by the fallout from a
fund whose activities were supposed to
drive Malaysia’s continued prosperity —
but have instead damaged its reputation
and left a fog of suspicion on several
continents.

MAHATHIR MOHAMAD
Prime minister of Malaysia between 1981
and 2003, Mr Mahathir has led efforts to
topple Najib Razak, who now occupies the
position, calling for “people’s power” to
oust a “corrupt leader”.
Critics accuse Mr Mahathir, 90, of double
standards, as his rule was intolerant of
dissent and notable for political
patronage and cronyism — as well as
strong economic growth.
JHO LOW
Malaysian financier and socialite who has
faced increasing questions over his role, if
any, in helping broker 1MDB’s multibillion-
dollar joint ventures with companies from
Saudi Arabia and Abu Dhabi. Mr Low has
denied wrongdoing and said he was never
an adviser to 1MDB. New York property
deals suspected of being linked to Mr Low
and Riza Aziz, Mr Najib’s stepson, are
being probed.
TIM LEISSNER
The driving force behind Goldman Sachs’
expansion in Malaysia, during which the
bank arranged $6.5bn of bond deals for
1MDB in 2012 and 2013. It emerged last
month that Mr Leissner, who is married to
Kimora Lee Simmons, the US model, has
taken “personal leave” and moved from
Singapore to Los Angeles.
Mr Leissner has not been accused of any
wrongdoing.
NAJIB RAZAK
Malaysia’s prime minister and chair of
1MDB’s advisory board. The son of a
former premier, aged 23 he became the
youngest parliamentarian in the country’s
history. That was the start of a rise
through the ranks of the dominant United
Malays National Organisation, including
spells as defence minister and deputy
prime minister.
He has denied any wrongdoing.
RIZA AZIZ
Mr Najib’s stepson and the co-founder of
Red Granite Pictures in the US, which has
produced films including The Wolf of Wall
Street. US investigators are probing New
York property deals suspected of being
linked to Mr Aziz and his friend Jho Low
as part of a wider inquiry. Both men deny
any wrongdoing. Red Granite says there
has “never been anything inappropriate”
about its or Mr Aziz’s business activities.
KHADEM AL-QUBAISI
The former head of Ipic, the Abu Dhabi
state investment fund, stepped down in
April without explanation, after
overseeing ventures with 1MDB worth
billions of dollars. Ipic is seeking to clarify
what happened to more than $1.4bn that
1MDB said it had paid out, but was never
recorded as received in the Abu Dhabi
fund’s accounts. Mr Qubaisi has not been
accused of any wrongdoing.
8 ★
TUESDAY 16 FEBRUARY 2016
The Senate’s subversion
of the Supreme Court
Republicans must swiftly consider President Obama’s nominee
Were there any uncertainty that the
United States Supreme Court has
become politicised to a disturbing
degree, it was proved beyond reasona-
ble doubt this weekend.
The death of Antonin Scalia, gener-
ally regarded as the court’s most elo-
quent and trenchant defender of con-
servative positions, set off not just the
expressions of regret and condolence
from across the political spectrum, but
the most blatant power-grab by Repub-
licans in Congress.
Mitch McConnell, leader of the Sen-
ate — the consent of which is required
to appoint Supreme Court justices —
declared that the next president, not
Barack Obama, should be able to nomi-
nate Mr Scalia’s replacement. This
naked threat to hijack the nomination
process shows that the partisanship on
Capitol Hill continues to reach new and
worrying levels.
There is no constitutional basis
whatsoever for the idea that a presi-
dent loses the right to nominate
Supreme Court justices, and have the
Senate consider them for confirma-
tion, in the final year in office. Ronald
Reagan nominated Anthony Kennedy,
still on the Supreme Court, in Novem-
ber 1987 and he was confirmed unani-
mously by February 1988.
Mr McConnell’s argument that delay
will give the American people a voice in
the selection is absurd. They had a
voice in 2012 when they re-elected Mr
Obama and, in any case, Supreme
Court justices are not elected either
directly or indirectly by voters.
The fact that the Senate leader did
not even wait to see whom Mr Obama
nominated is all too revealing. This is
not about judging the quality or the
judicial philosophy and record of nom-
inees. It is an attempt to snatch powers
from a sitting president in the hope that
a successor more to Mr McConnell’s lik-
ing is elected in November.
French labour relations
take a turn for the better
EDF’s deal on working hours may give others confidence to negotiate
The 35-hour week is far from being the
biggest obstacle to hiring in France’s
dysfunctional labour market, but its
symbolic importance is undeniable.
Business leaders are adamant that the
law on working hours reinforces crass
Anglo-Saxon stereotypes of France
abroad, making it harder for them to
fight “le French-bashing”. At home,
however, any move to scrap the 35-
hour week ignites a political firestorm.
The agreement set to be reached this
week by the state-owned utility EDF —
whose staff have long enjoyed some of
the most generous terms and condi-
tions of any French workers — there-
fore represents a breakthrough.
The changes may appear modest.
EDF’s white-collar staff will be able to
cede some of their astonishing 10-week
holiday allowance in return for a pay
rise; but the deal is optional, reversible
and will not apply to blue-collar
employees. Its real significance, how-
ever, lies in the precedent it sets for
employers and unions to agree sub-
stantive reforms at company level.
This is important, because it is
becoming clear that employers cannot
look to the government to solve their
problems. A radical shake-up of the
labour market would be desirable —
and consistent with president François
Hollande’s rhetorical declaration of an
“economic state of emergency” — but it
is not realistic at this point in the politi-
cal cycle. Tearing up the 35-hour week,
which even Nicolas Sarkozy failed to
do, would be divisive for the Socialist
party, at a time when its priority is
rebuilding bridges with disaffected fac-
tions on the left of the party.
Instead, the government has con-
firmed that it will not scrap the require-
ment to pay overtime rates on any
work done above the 35-hour limit. It
has also made it clear that labour mar-
ket reforms to be unveiled next month
will not touch the minimum wage or
The Supreme Court has itself slid fur-
ther towards a partisan division of
fixed voting blocs in recent years. Often
decisions appear to be taken on the
basis of whether a particular case
advances a liberal or a conservative
cause. That the court in 2010 split 5-4
along the lines of established voting
blocs in a judgment that liberated the
conservative lobby group Citizens
United — and by extension all corpora-
tions — from campaign finance laws
was all too predictable.
Intensely controversial issues such
as gay marriage and gun control have
frequently come down to 5-4 decisions,
with Mr Kennedy often the swing vote.
Mr Scalia was almost invariably on the
conservative side of any divide. His
characteristically pugnacious judg-
ments were often scathing about what
he regarded as attempts by liberal
judges to advance particular social
goals using constitutional law.
With stakes raised by divisions
between the White House and Con-
gress, the Supreme Court’s rulings have
recently exerted huge significance in
fiercely contested areas.
Its upholding of the constitutionality
of Obamacare — on this occasion with
John Roberts, the Chief Justice, joining
the liberal bloc — and its recent deci-
sion to put a stay on the White House’s
climate change policy demonstrate
that its rulings determine success or
failure for issues vital to Mr Obama’s
presidency.
Without a ninth justice, the Supreme
Court is likely to be in gridlock for a
year. This is unconscionable. Although
Mr Scalia was known as a strongly con-
servative justice, the Senate confirmed
him swiftly and unanimously when he
was appointed in 1986.
The Republican-led Senate should
drop its partisan positioning and
swiftly and fairly consider whatever
nominee Mr Obama puts forward.
the inflexible contracts that discourage
permanent hiring. Yet again, incre-
mental reforms will be the order of the
day. What the government may
attempt, however, is a shake-up of
labour relations, aiming to foster a cul-
ture of negotiation and facilitate agree-
ments at company level.
In the long run, this could be even
more important than rewriting legisla-
tion. In reality, the 35-hour week is less
strictly observed than its symbolisms
would suggest. Working hours are not
far below the EU average. The law is not
an absolute limit; it simply sets a point
at which employees can start to claim
overtime of at least 10 per cent.
Employers are free to negotiate work-
ing hours, overtime rates and any extra
holiday allowances with unions and
with their own employees.
The problem is that labour relations
in France are so poisonous that they
rarely do. Employers often default to a
much higher 25 per cent rate of pay for
extra hours, because they fear they will
be hauled through the courts if they
attempt to bargain it down. Even when
a deal is reached at company level, it is
sometimes overruled by unions at
regional level. Daimler struggled to
agree an extension of the 35-hour
working week at a factory in Lorraine,
even though most of the employees
themselves had backed it.
EDF is not the first major French
employer to find a way through this
minefield; but it is one of the most
prominent. Its agreement could give
executives and unions elsewhere the
confidence to negotiate.
It will also be a useful test of employ-
ees’ preferences. French politicians on
the left claim the 35-hour week pro-
tects workers; those on the right claim
people should have the freedom to earn
more if they choose. It will be interest-
ing to see how EDF’s desk workers
respond when given a choice.
FINANCIAL TIMES
Let internal politics replace intervention
Sir, Whatever one thinks of Vladimir
Putin’s foreign policy, might we agree
that the destruction of two states —
Iraq and Libya and semi-destruction of
Syria — have been western foreign
policy disasters? (“Syria is merely one
piece in Russia’s strategic jigsaw”, Tony
Barber, February 12) When you
destroy a state the gates to every
corner of hell are opened — no
frontiers, no police, no law, no
education, no infrastructure, no
government, a Hobbesian war of all
against all. After Iraq one might have
thought western policymakers would
have paused before turning Libya into
We can only hope that
the cerebral will get the
better of the visceral
Sir, Dmitri Trenin, director of the
Carnegie Moscow Center, paints a grim
picture of the Syrian war but embeds it
in an inappropriate historical analogy
(“Syria’s future lies in its neighbours’
hands”, February 10). Rather than
resembling the Spanish Civil War of
1936-39, as he contends, Syria is more
like the Balkans during the summer of
1914.
The interventions of the US, Russia,
Turkey, Saudi Arabia, Iran and others,
impacting on local and foreign non-
state actors fighting each other as well
as the Assad government — within the
combustible overlay of the 1,000-plus
years of Sunni-Shia schism — resemble
events of 102 ago when Europe’s
monarchs, statesmen, and generals
blundered into a catastrophic war that
no one wanted.
So, what would it take to set the stage
for world war three? A few accidental
or even — in the heat of battle —
intentional shoot-downs of Nato
aircraft by Russia, generating an
insidious dynamic that results in
invocation of Nato’s “all-for-one-and-
one-for-all” Article V, tipping over into
a global war. We can only hope that US-
Russian “deconfliction” co-ordination
in Syria, plus a shaky ceasefire, will
prevent the visceral from
overwhelming the cerebral, forcibly
cutting short the journey to the point of
no return!
Dennis JD Sandole
Professor of Conflict Resolution and
International Relations,
George Mason University,
Arlington, VA, US
EU incapable of sensible
decisions about borders
Sir, The UK faces a crucial vote on the
EU, on which you have published
reams. Over questions of sovereignty
and the economy, there is scope for
dispute, although many of us now view
the EU as an albatross around the
nation’s neck. Over the question of
security, there is no such latitude. The
first duty of any government is to
protect its borders, but EU nations are
manifestly failing in this primary role.
The EU’s range of ersatz “human
rights” prevents its members from
making common sense decisions about
their borders and who cross them.
These rules must change.
Furthermore: Turkey should
receive a discreet but clear ultimatum:
stop the boat people now, or no money
and the EU will stop trade. Security
Being a boss is
not what it used
to be — literally
Shanghai
Notebook
by Patti Waldmeir
Letters
a 1000km breach in the previously
reasonably solid southern
Mediterranean border through which
refugees and Islamist jihadis now pour
or export weapons and Islamist
ideology.
Of course we all celebrate an uprising
against nasty authoritarians and there
are no end of them to chose from in the
Middle East, the Gulf, parts of Africa
and further afield. But it is so easy to
start fuelling a conflict but so hard to
say it is time to end it, hold our noses
and let death and internal politics take
the place of external intervention.
Restoring state authority in Iraq, Libya
fences should protect the whole
eastern EU land border. The navies of
member states should police the
Mediterranean on a continuous basis.
All suspicious vessels should be
intercepted far short of any EU
landfall. Illegal migrants should be
returned to their point of origin and
the crew arrested for trafficking and
jailed. Where possible the vessels used
should be destroyed.
If the EU cannot, in the next few
months, summon up the political will
to resolve an immigration crisis, for
which solutions are so readily
available, it will demonstrably have
become a busted flush. We will not
need to consider any other issues. We
will be better off outside the EU.
Gregory Shenkman
London W8, UK
Sleepless night at a station
that led to 24-hour clock
Sir, It was not the Royal Navy that
established Greenwich mean time as
the standard for the world, as John Kay
writes, but a Scots-Canadian railway
engineer, Sir Sandford Fleming
(“Advantages of dwelling in a decent
timezone”, February 10).
While exploring County Donegal in
July 1876, Fleming waited in vain for
the (non-existent) 5:35pm train to
Londonderry. He spent an
uncomfortable night in Bundoran
station as the train left promptly at
5:35am each day. Having passed the
night in deep thought, he resolved to
eliminate such timetabling problems,
publishing a pamphlet, “Terrestrial
Time”, which proposed a worldwide
system of time. He recommended a
24-hour clock, dividing the world into
timezones and establishing a single
prime meridian.
Initially, Fleming proposed the
In China, you are what you do. The
boss of any workplace — even if that is
a greasy spoon or corner store — is
called “boss”. Even journalists are
referred to by status-laden honorifics.
So I am not Ms Waldmeir or Patti, but
Teacher Waldmeir. Reporters here
may want for press freedom but at
least they receive a title they might
not merit elsewhere.
Even within the family, names were
traditionally hierarchical: the first
born was laoda (“the big one”); the
second child laoer or, literally, number
two. It’s all in the title.
What happens, though, when a boss
is not a “boss”?
One of China’s biggest property
developers, Vanke, is trying to find
out. Recently the Shanghai branch
banned staff from calling each other
zong — literally, “general manager”
but functionally “boss”. All staff must
call each other by English names or
nicknames, or they can add the prefix
“young” or “old” before the surname.
Basically, anything but zong. That goes
for everything from meetings in the
C-suite to texts or WeChat messages
about which bar to hit for a quick
baijiu after work. To make sure the
order is obeyed, the zong must pay the
Rmb100 fine if it is transgressed.
Vanke wants no more zongs.
This comes from the land of “just
call me comrade” — the title Beijing
used to require all Communist party
members to use, regardless of their
status, to smash hierarchy and create
an egalitarian society. And we all
know how that turned out.
and Syria should now be the supreme
object of statecraft.
If President Putin thinks that’s
victory, let him. A stable Euro-
Mediterranean region where
investment can replace intervention on
its southern and eastern littorals will
return the EU to growth, prosperity
and confidence, and that is far more
challenging to the Russian autocrat
than the destroyed or semi-destroyed
states and tsunamis of refugees that
have been the main fruits of western
policy this decade.
Dr Denis Macshane
London SW1, UK
Greenwich anti-meridian which runs
through the Pacific, possibly to forestall
French objections to Greenwich.
However, at the 1884 International
Prime Meridian Conference in
Washington, which he was
instrumental in convening, Fleming
successfully argued for Greenwich
rather than Paris to be the “common
zero of longitude and standard of time
reckoning throughout the globe”.
France abstained in the final vote,
and kept Paris time until 1911.
Dr John Doherty
Vienna, Austria
IMF as an instrument of
change on gender equality
Sir, Christine Lagarde’s imminent
reappointment as head of the
International Monetary Fund is
welcome, especially her intention to
continue promoting gender and
income equality. Ms Lagarde’s next
step should be to draw together the
IMF’s work on tackling harmful tax
spillovers and allowing greater
flexibility for investment in public
services.
Taxes are the building blocks of
society yet a range of challenges — such
as harmful tax incentives and
corporate tax avoidance — erode the
tax base in developing countries and
undermine key services vital for the
achievement of women’s rights. Overly
rigid fiscal consolidation policies — at
times recommended by the IMF — are
further constraining public
investment. The result is women left to
pick up the slack as schools, hospitals
and childcare services are starved of
resources.
A recognition of these impacts and a
commitment to redress them as part of
future lending agreements with poor
countries could transform the IMF into
an instrument of change on gender
equality.
Lucia Fry
Head of Policy,
ActionAid UK
If there’s just one reason
to choose Trump, this is it
Sir, At last, and in a single sentence, a
reason for believing that Donald
Trump deserves to win the Republican
nomination followed by the
presidency. According to his rival for
the nomination, Senator Ted Cruz, “If
Donald Trump is president, your
second amendment rights [the right to
possess guns] will be gone.” (“Scalia
death sets off fierce political battle”,
February 15.)
Jon Webb
Amstelveen, The Netherlands
Vanke can be forgiven for having
another go. Chinese workplaces are
hierarchical. Maybe every company in
the world is the same and the rest of
us just like to pretend it isn’t. In China,
however, no one pretends; in many
offices sycophancy is the order of the
day. Vanke, however, is betting that
sycophancy is not conducive to
innovation — the theme of the decade
for Beijing, which is banking on it to
help China escape a period of slowing
growth.
“Vanke is trying to change the
culture,” says Katherine Xin,
professor of management at China
Europe International Business School
in Shanghai. “I see it as a signal for
culture change from a hierarchical to
a flat organisational structure.”
One Vanke employee, who did not
want to be identified even by a
nickname, says: “After the new rules
were released, my boss — let’s say his
surname is Xu — gave us a choice to
call him either by his English name, or
Old Xu.” “Old” may not sound like the
kind of prefix western staff would
append to their boss’s name.
In China, by contrast, it is
inoffensive, casual and commonly
used in and out of the workplace. No
need to report that one to HR. “I think
it makes us feel closer. The company
wants us to have a sense of belonging.”
So has it levelled the playing field at
Shanghai Vanke? The same
employee says the hierarchy still
exists. “Even though the company has
promised to make information
transparent, we still don’t find out
Tuesday 16 February 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Response to obvious
policy failure is — very
much more of the same
Sir, The financial turbulence of the past
weeks is but one of the unfortunate
consequences of the almost exclusive
reliance on monetary policy as a means
of maintaining effective demand after
the crisis of 2007-08.
The adage that, in the absence of the
prospect of growing demand, cheap
money amounts to “pushing on a
string” has been once again confirmed
in advanced economies by the slowest
recovery from any modern recession.
Instead of funding real investment,
monetary expansion has resulted in a
boom in asset prices — not just in real
estate and equity markets, but in the
flow of funds into emerging market
corporate bonds in the search for
higher return. All these asset markets
are extremely unstable, as is now all
too evident. And, as has been once
again demonstrated in the last 7 years,
financial instability leads to substantial
real economic loss.
Yet in the face of evident policy
failure, and of severe asset market
distortions that can only lead to further
financial instability, the response
seems to be “more of the same”, or
even, in the case of negative interest
rates, “very much more of the same”.
There was a significant fiscal
expansion in the US in 2009 that had a
clear positive impact. But the federal
government lost its nerve and reined
back on the expansion just as it was
gathering pace. The quiet
abandonment of severe austerity by
the UK government in 2012 at least
enabled something of a recovery, albeit
fuelled by growing household debt.
Fiscal policy works.
Given that the cost of funds to most
governments is today negative in real
terms (and sometimes in money terms
too) it is difficult to understand the
failure to initiate a major expansion of
investment in infrastructure and the
other major components of “supply-
side” strength. This failure is resulting
not just in a loss of output today, but a
long-term loss of competitive
productive capacity (a particularly
severe problem for the UK). Fiscal
policy can provide the pull on the
string required to validate the
monetary push.
Prof Lord Eatwell
Queen’s College, Cambridge, UK
Stop lending to people
who don’t pay it back
Sir, With the greatest respect to John
Vickers (“The Bank of England must
think again on systemic risk”,
Comment, February 15) his focus is on
the wrong part of the potential
problem. This is the same as the health
industry’s imbalance towards
treatment, rather than prevention.
Banking crises always stem from
lending money to people who don’t
pay it back. The focus must be on not
doing that, rather than being able to do
that quite a lot or more. In our part of
the market, we are already seeing a
significant increase in high loan to
value/high income multiple mortgages.
It is not hard to foresee where that
may end in due course. Survivable or
not, it is much better for all concerned
not to do it.
Mark Bogard
Chief Executive,
Family Building Society,
Epsom, Surrey, UK
about executives’ decisions right away.”
Ms Xin says the practice, which is in
any case still very rare, is most
common at technology companies. At
Alibaba, the Chinese ecommerce
group, employees can choose their
own nicknames. Many were initially
required to choose from Chinese
martial arts novels because Alibaba’s
boss — oops, I mean Jack Ma — is a
fan. Those quickly ran out so staff can
now choose more freely. Employees
say that, even though he has selected a
nickname, most still call him Ma
Zong. Mr Ma, who previously taught
English, has recently appealed to
executives to call him Teacher Ma
instead.
Ms Xin herself forbade her
executive MBA students from calling
each other zong in the classroom, “but
many of them have not been called by
their names for so many years, they
are almost shocked by it”, she says. “If
I call them by their full name they
assume they are in trouble, like my
daughter would.” They revert to zong
when socialising after class.
“For those who are much older than
me or high up in the company,” says
the Vanke employee, “their English
names stick in my mouth and I think
it’s not appropriate to call them that,
so I call them ‘teacher’.”
It will take more than a few English
monikers or hero nicknames to flatten
the Chinese hierarchy but it’s a start.
Maybe one day soon we’ll be asking
where all the zongs have gone.
patti.waldmeir@ft.com
Tuesday 16 February 2016
Tories and Scots shadowbox to mutual benefit
POLITICS
Janan
Ganesh
L
ast spring, the Conservative
minister Nick Boles noticed
something exercising his con-
stituents in Lincolnshire, in
the English Midlands. What-
ever their gripes with his party, they
knew the Labour opposition could only
govern after the 2015 general election
with the parliamentary complicity of
Scottish Nationalists.
And how they hated the idea. The MP
had never known such a doorstep sensa-
tion, with voters irrespective of age, sex
and class seething at talk of separatist
influence at UK level. Smelling an unan-
swerable line of attack against Labour,
he drove to London to confer with Lyn-
ton Crosby, the Tories’ campaign direc-
tor whose research, it turned out, had
picked up the same sentiment.
The revival of
American
isolationism
FOREIGN AFFAIRS
Gideon
Rachman
W
hy is the Middle East in
flames and Russia on
the rampage? In both
Europe and the Middle
East, it is common to
hear the blame placed on Barack
Obama. The US president, it is charged,
is a weak and disengaged leader who has
allowed international events to get out
of control. Many Americans — both lib-
erals and conservatives — make the
same accusation. Sarah Palin, darling of
the American right, has called Mr
Obama “capitulator-in-chief”. Roger
Cohen, a New York Times columnist,
has blamed Syria’s agony on the “feck-
lessness and purposelessness” of the
Obama administration.
Those who yearn for a more muscular
US foreign policy often assume that Mr
Obama will prove to be an aberration —
and that the next president will “put
America back in the game”. But that
could well be a misreading of the under-
lying direction of US politics and foreign
policy. The current frontrunners in the
presidential election campaign — Don-
ald Trump on the Republican side and
Bernie Sanders for the Democrats —
have embraced ideas that are isolation-
ist, in all but name. If those ideas pre-
TECHNOLOGY
John
Thornhill
T
o visit Silicon Valley these
days is to take a rocket ride
into the future. The breath-
less talk is of another surge
in technological innova-
tion, the rapid development of virtual
reality, driverless cars, 3D printing,
robots, personalised medicines, the
application of artificial intelligence to
masses of data and of further disruption
in almost every nook of the economy.
It is an exhilarating, disorienting and
at times downright scary experience.
Turning on the television while visit-
ing Silicon Valley, in a bid to catch up
with the presidential election campaign,
is to crash back to Earth with a thud.
The talk is of income inequality, the col-
lapse of the middle class, the banning of
The party spent the subsequent
weeks talking up a deal between Labour
and the Scottish National party, which
the SNP did nothing to talk back down.
Thus were Labour’s existing flaws
sharpened in English voters’ minds.
How could a leader as shaky as Ed Mili-
band stand up to the SNP’s formidable
Nicola Sturgeon? Why entrust the econ-
omy to two parties of the left?
What germinated in Lincolnshire
streets and airless focus group rooms
grew into a lethal campaign, and now
something much more important. Brit-
ish politics rotates around an unofficial
non-aggression pact between English
conservatism and Scottish nationalism.
As antagonistic as any two movements
in the land — culturally, ideologically —
they nevertheless have a mutual strate-
gic interest in each other’s success that
neither side can admit.
As long as Tories govern in London,
Nationalists in Edinburgh have an ogre
against which to define themselves and
mobilise their voters. They can run
Scotland and wear the rebel colours of
opposition at the same time. While gain-
ing from this insider-outsider status,
vail, they would make Mr Obama look
like a super-engaged internationalist.
Even if Mr Trump and Mr Sanders
never get close to the White House, the
popularity of their campaigns, and their
influence on the more mainstream can-
didates, suggests that there is now a
strong constituency in the US for a
retreat from globalism: repudiating
international military and economic
commitments.
The inherent isolationism in Mr
Trump’s thinking can be disguised by
his chest-thumping rhetoric about
rebuilding the military and getting
tough with foreigners. But it is no acci-
dent that his signature initiative is to
build a gigantic wall along America’s
southern border. Mr Trump’s economic
rhetoric is all about shutting out the
world. He is the most explicitly protec-
tionist candidate in the field, promising,
for example, to make sure that Ameri-
cans buy US-made cars and machinery,
not Japanese imports. He denounces the
trade deals that the US has signed as bad
for America and has pledged to rip them
up.
Mr Trump takes a similarly mercan-
tilist attitude to security, promising to
force South Korea and Japan to pay for
America’s military protection. The
implication is that there is no inherent
US national interest in underwriting the
security of the Asia-Pacific region. That
logic, taken to its obvious conclusion,
would be a formula for America pulling
back from its security commitments all
over the world.
Mr Trump is also a frank admirer of
A tale of two coasts, digitally divided
Muslim visitors and the building of
walls to stop immigrants pouring into
the US.
The optimism of forward-looking
West Coast entrepreneurs clashes with
the pessimism of the backward-looking
East Coast politicians. That coastal
divide is particularly stark in the US but
it exists metaphorically in many other
countries, too. At its simplest, it is a tus-
sle within ourselves, both as consumers
and as citizens.
The techno-optimists of California
promise a further bonanza for our inner
consumer, largely powered by the
supercomputer smartphones in our
pockets. They aim to dissolve remaining
inefficiencies in just about every con-
sumer transaction, in the same way as
Uber has revolutionised the taxi trade
and Airbnb has challenged the hotel
industry, throwing up new economic
opportunities in the process. “You can
become a driver in an hour. You can
become a hotel owner in a day,” marvels
one venture capitalist.
By flying balloons, unmanned aircraft
and satellites over the remoter parts of
★ FINANCIAL TIMES
Comment
they can promote independence as the
ultimate hedge against never-ending
Conservative rule from Westminster,
which also doubles up as something to
blame for perceived blemishes in their
own administrative record.
Meanwhile, as long as the SNP com-
mands a virtual monopoly of parlia-
mentary seats in Scotland, it is structur-
ally near-impossible for Labour to
The real competition for
each side has always been
Labour, and they have
locked it out of power
defeat the Tories in a UK-wide election.
And the harder it is for Labour to win,
the more the party favours a life of ideo-
logical indulgence by way of consola-
tion. Its members chose the ageing
socialist Jeremy Corbyn as leader last
autumn not as a way back to credibility
but as a source of pleasure while impo-
tent. The Tories can rest on historically
lavish poll leads because Labour has
the Russian president, Vladimir Putin,
calling him a “strong leader” and bask-
ing in Mr Putin’s praise. In a recent
Republican debate, all the presidential
candidates queued up to denounce Mr
Obama for not crushing the jihadis of
Isis, but none mentioned Russia’s inter-
vention in Syria. As a foreign policy
“realist” and self-proclaimed deal-
maker, Mr Trump would undoubtedly
be attracted to granting President Putin
his longed-for Russian “sphere of influ-
ence” in eastern Europe. And once that
is done, why not cut a similar deal in
East Asia with Xi Jinping of China,
another tough-guy foreign leader who
Mr Trump openly admires?
Senator Sanders has not embraced
the militarism of Mr Trump’s view of the
world. Instead, he has opted for the
Both the far right
and the hard left in the
US are now promising a
retreat from globalisation
the world, Google and Facebook are also
planning to connect everyone on the
planet to the internet, creating the pos-
sibility of a global digital marketplace
for products, services and ideas. “The
fact that we may soon provide all
human knowledge to the entire popula-
tion of the world is a pretty big step for-
ward,” says one tech executive. More
excitable commentators predict the era
It would be a tragedy if
the promise of technology
was sideswiped by a
neo-Luddite backlash
of the mass production of ideas, of a
“second renaissance”, of the flowering of
a global civilisation.
But when the Silicon Valley crowd
pause for breath, even they worry
about some of the consequences
of this technological turmoil: the
impact on so many traditional jobs, the
erosion of employment rights and the
given up, and Labour has given up
because the SNP is so strong.
A principled unionist cannot object to
a UK government that hinges on a Scot-
tish party’s votes. England’s emetic
reaction to the mere prospect of SNP
clout in Westminster last year
amounted to a dismal prognosis for the
union. But Ms Sturgeon will hardly
worry about that, and even some Tories,
when pressed, only want to preserve the
UK in the same way that most people
want to lose weight. The present and
tangible reality of power matters more
than the still-distant dread of national
break-up.
No, the status quo suits both parties
too much to disrupt, even if they knew
how to go about such a thing. They are
two columns propping up a political
structure that shelters their interests.
The anguish is all Labour’s. The party
can only get around its systemic exclu-
sion from power by reclaiming lost terri-
tory in Scotland. If Mr Corbyn flunks
that challenge — and polls ahead of
May’s Scottish elections suggest he will
have a hard enough time keeping the
Tories in third — it should explode the
leftwing version of isolationism:
denouncing the idea that America
should be “policeman of the world”. Mr
Sanders also has a Trump-like distaste
for free trade, proclaiming: “Unfettered
free trade has been a disaster for work-
ing Americans.”
Together, Mr Trump and Mr Sanders
are capitalising on growing American
disillusionment with globalisation. The
living standards of middle-income
Americans have been under pressure
for decades, and foreigners and an inter-
nationally connected elite are easy
scapegoats. Both the far right and the
hard left in America are now promising
a retreat from globalisation. But any
such retreat would have profound con-
sequences, not just for the international
economy, but for America’s role as the
world’s most powerful nation.
Of course, both Mr Sanders and Mr
Trump are still a long way from the
White House. The bookmakers’ favour-
ite to be the next president remains Hil-
lary Clinton. And yet, even Mrs Clinton
has had to respond to the new public
mood. Last week, she adopted Mr Sand-
unequal distribution of the fruits of
technology.
One long-time tech observer says Sili-
con Valley’s creative destruction will
lead to a cruel world for many “throw-
away citizens” in the US and Europe
who cannot adapt. “Donald Trump has
his finger on the lurking, deep-seated
fear of the throwaway citizen,” he says.
Silicon Valley may have an image as a
haven of libertarianism but some are
surprisingly keen on the idea of greater
social insurance — such as a “citizen’s”
or “basic” income — to be funded by a
digital dividend from tech profits.
Darian Shirazi is one young
tech entrepreneur who supports the
idea. “We have a small technological
aristocracy and a middle class
struggling to catch up with the demands
of a more efficient economy. Basic
income can bring a baseline and offer
freedom to those trapped by our new
economy.”
Angry voters in rich societies clearly
feel that politicians duped them about
the gains of globalisation over the past
30 years. Although benefiting massively
idea, born of the 1980s, that Scots are
wildly leftwing. There are cross-border
differences, but they centre on identity
first and ideology second.
Of course, Ms Sturgeon will continue
to clash with David Cameron, the Tory
prime minister, over nuclear weapons,
budgets and the timing of the EU refer-
endum. These grievances are real. The
parties are so dissimilar in every way
that journalistic coverage of parliament
has turned into a kind of anthropology.
But if two prize fighters can insult
each other monstrously while keeping a
cold eye on the profit they make from
the other’s existence, the two deftest
politicians in Britain can perform a sim-
ilar feat of cognitive dissonance. There
is something of boxing’s orchestrated
raillery about Tory-SNP hostilities now-
adays. The real competition for each
side has always been Labour, and they
have managed to lock it out of power.
Only Scottish independence itself —
which would give Nationalists their
existential prize — could suit either of
these parties any more perfectly.
janan.ganesh@ft.com
ers’ claim that the economy is “rigged”
in favour of a privileged elite.
Mrs Clinton has also come out against
the Trans-Pacific Partnership (TPP), a
new trade deal that she once champi-
oned as secretary of state. As president,
Mrs Clinton would probably find a way
of supporting the TPP, which she used to
argue is a crucial part of America’s
“pivot” to Asia. She certainly takes a
conventional “establishment” view of
the importance of American leadership
in the world.
But the current course of the presi-
dential election suggests that it would be
foolhardy to dismiss the chances of
either Mr Trump or Mr Sanders actually
winning their parties’ nominations and,
ultimately, the presidency.
If that were to happen, the commen-
tators who are currently bemoaning the
“weakness” and “fecklessness” of Presi-
dent Obama would come to realise that,
in fact, he might be the last in a line of
serious and committed international-
ists to occupy the Oval Office.
gideon.rachman@ft.com
as consumers, many voters have lost out
as workers, as jobs have shifted abroad
and incomes have stagnated. The tech
revolution only compounds the
upheaval, threatening the second great
disruption of our lifetimes.
James Manyika, co-head of the
McKinsey Global Institute, suggests the
picture is far more nuanced. He
says each individual has at least five fac-
ets: as consumer, worker, citizen, inves-
tor and a moral being. “All these have
largely worked in convergence before
but these technological shifts are creat-
ing very different answers today,” he
says.
It would be a tragedy if the promise of
technology was sideswiped by a neo-
Luddite backlash. We need govern-
ments to understand these dizzying
changes and devise smart regulation
that encourages innovation rather than
suppresses it. We also need the tech
companies to acknowledge the disrup-
tion they cause and do far more to bene-
fit all aspects of our lives.
john.thornhill@ft.com
9
A Syria policy
that dare
not speak
its name
OPINION
Michael
Ignatieff
O
nce President Barack
Obama had let Bashar
al-Assad cross his “red
line” and use chemical
weapons in 2013, America
was left with a policy in Syria that dare
not speak its name.
The policy is not what the US wants
but, in light of the ceasefire plan agreed
last week in Munich between Moscow
and Washington, it appears to have
become what it reluctantly accepts: to
allow Mr Assad and Russian president
Vladimir Putin to win by focusing
attacks on anti-regime rebels in strong-
holds such as Aleppo — and then, after a
decent interval, to join with them to
crush the militants of Isis.
The consequences of this policy are
becoming clearer by the day: free
Aleppo is dying under continuing Rus-
sian bombardment and a civilian upris-
ing that began in 2011 is collapsing for
want of help. Mr Assad is re-establishing
his tyranny and is certain to take venge-
ance on surviving insurgents.
This is where risk avoidance has led a
conscientious, prudent American presi-
dent — to a diabolical transaction in
which he and his allies regretfully sacri-
fice the lives of innocent civilians in the
name of the mistaken belief that the
west’s only overriding strategic interest
in Syria is the defeat of Isis.
If this is the actual policy of the US the
consequences should be spelt out. Rus-
sia and Iran will consolidate control of a
rump state in the Middle East but the
millions of Syrians who have fled the
fighting will never return home and the
region will never know peace.
Only if the cost of further
advance becomes prohibitive
will Assad and Putin halt
their military progress
Once the US abandons the rebels to
their fate, those who survive will surely
align with their Sunni brothers in Isis.
Instead of reducing the number of
America’s enemies, this betrayal is
likely only to swell their number.
US policy has left Europe with the
worst of all worlds. Its actions have
failed to stop Isis-trained terrorists from
attacking European cities and their fail-
ure to stop the Syrian civil war has over-
whelmed the continent’s borders with
refugees. If the war ends on Mr Putin
and Mr Assad’s terms, with the dictator-
ship over Syria restored, the exodus will
increase and even Germany may have to
join other European countries in closing
borders. This will not stop the desperate
from trying and they will have to be
turned back with razor wire, water can-
non and brute force.
Is there, even at this late hour, an
alternative course? John Kerry, US sec-
retary of state, has tried to save Aleppo
with a deal guaranteeing humanitarian
access but the Syrian army, with the
help of Russian special forces, has the
strangulation of the city and the defeat
of the rebels within its grasp.
Only a credible threat from the US
and Nato will stop it. This could include
further economic sanctions on Moscow
in addition to those levied for its inva-
sion of Crimea and violation of Ukrain-
ian sovereignty. It could include rapid
supply of anti-aircraft and anti-missile
equipment to trusted rebel forces.
As a final resort Nato and the US could
establish an aerial protection zone from
the outskirts of Aleppo to the Turkish
border, ensuring that the city is not cut
off from its supply lines and protecting
civilians seeking to flee the violence.
Only if the cost of further advance
becomes prohibitive will Mr Assad and
Mr Putin be persuaded to call a halt to
their military advance and return to
negotiations for a ceasefire and the end
of bloodshed.
The risks of accident, miscalculation
or escalation are not small but they can
be reduced by means of strict rules of
engagement, hourly contact with the
Russian military to manage “deconflic-
tion” and a clear message to Mr Putin
that the way out lies in an immediate,
stand-in-place ceasefire and negotia-
tions to create a political solution.
The risks are justified because the
stakes are nothing less than the credibil-
ity of the Nato alliance, the survival of
Europe as a union and the lives of hun-
dreds of thousands of innocent people.
The writer is Edward R Murrow professor at
the Harvard Kennedy School
10 ★ FINANCIAL TIMES Tuesday 16 February 2016

BUSINESS LIFE

Incumbents,
A colleague recently minted a new
word by accident — “incumbation”. It
dark arts and won’t catch on but its fleeting
appearance made me wonder what
the opposite such a term, if it existed, might define:
the opposite of innovation.
As grimy layers of admin accrete on
of innovation the original bright ideals of their
founders, incumbent companies
‘
deliberately delayed payment as it the profits from internet search can
sought to meet targets. Tesco, which is easily fuel its moonshots. “They’ve Art of persuasion
still under investigation from the
Serious Fraud Office for accounting
created teams around virtual reality,
self-driving cars and so on, which are
How Hillary Clinton crafted a
irregularities, has said it is now “a very
different company”. The fine imposed
last week on GlaxoSmithKIine for
separate from box one, allowing box
three [activities] to take root,” Prof
Govindarajan says.
kind of victory out of defeat
illegally stifling the launch of a cheap
rival antidepressant is another
A vigorous
obsession
A box one obsession, however, can
lead to short-termism, barge aside
SAM LEITH

become prone to inertia and what Gary
Hamel, the management thinker, has
called “bureausclerosis”. Such
complacency is bad. But some of the
methods that established companies
use to protect themselves are worse.
My list would include: spending as
example. (The UK pharmaceuticals
group may appeal against the ruling.)
No company wants to give up a
profitable position in its market.
Leadership is often hard-won. But
maintaining it without adopting the
dark arts of incumbation is difficult.
other strategic priorities and tempt
with companies into time-consuming
defending defensive battles. Technology groups
are not immune. Anti-poaching deals
the core can between Silicon Valley companies,
be worse including Google and Apple, were rife
before the US Department of Justice
than inertia

much on lobbying and public relations
as on research and development;
fighting to prolong patent cover to the
detriment of legitimate new entrants,
and destroying potential competitors
by undercutting them or buying them
out, only to kill off their innovative
alternative products.
Leaders of incumbents also defend
the status quo internally. They
suffocate diversity or hold back change
at the top, ramp up executive pay and
construct hierarchies that blight
creativity and encourage barons to
build fief-like mini-incumbents inside
the bigger company.
At the extreme, a dominant
company may shore up its position
through anti-competitive acts, such as
Andrew Hill dumping, predatory pricing or the
massage or misstatement of earnings.
Onmanagement Tesco’s mistreatment of suppliers
between 2013 and 2015 following an
accounting scandal is typical of such
behaviour. According to its regulator,
the dominant UK supermarket
Music streaming means
the London nightclub
empire’s compilation
albums are under threat,
writes Robert Cookson
’
Google illuminates an alternative clamped down on them in 2010. Uber
route. Larry Page set up Alphabet, its and Amazon have armed up in recent
new holding company, to make the years by hiring political lobbyists to
“moonshot” subsidiaries that sit deal with regulatory pressure. Daniel Acker/Bloomberg
alongside the core search business Meanwhile, they neglect Shiva’s Magnanimity in victory; Sanders on his victory
more transparent. Mr Page believes appetite for destruction at their peril: grace in defeat: that is what tonight and I want to thank
most ventures fail because they keep if Mr Page does not have the you want to aim for. each and every one of you.
doing the same thing. They need to self-discipline to ditch As veteran viewers of And I want to say I still love
cultivate “zero billion dollar underperforming ventures, they will televised Hollywood awards New Hampshire and I always
companies” — radically innovative clutter the route to the launch pad for shows, we all know that the will.”
enterprises that could eventually his more promising projects. victory speeches — “I’m I have italicised the key
command unicorn-sized valuations. Recumbent incumbents are almost speechless! [continues for words. Note the affectation
Alphabet aspires to a balanced always doomed. The good news is that 40 minutes]” — are not of speechlessness — “my
approach, as outlined by Vijay technology and transparency have where the action is. The goodness!” – as if she had
Govindarajan of Dartmouth’s Tuck already cut away at the distribution emotional sting is in the expected a losing crowd and
business school in a new book, The and information monopolies that used cutaway shots. The cameras stumbled into a victory
Three Box Solution. Inspired by the to shelter large, lazy companies. The greedily scrutinise the celebration. Also note that
Hindu gods Vishnu, Shiva and Brahma, bad news is that survivors will continue runners-up as they compose effort to address the crowd
who stand respectively for to use foul means as well as fair to their faces into equanimity, as individuals (and stress
preservation, destruction and creation, protect themselves. Their misguided genial congratulation or their numbers) — the beat
he says companies must assign core attempts at self-preservation can innocuous obliviousness to pause before “all”; the words
operations to box one, put stuff they
need to forget, sell or close in box two,
hobble the advance of more original,
more innovative competitors.
the idea they might be on
screen. That’s where actors
“each and every one of you”.
In a sense, that’s where
and develop the future in box three. really bring their A-games. her concession speech ends.
Google, for instance, still generates andrew.hill@ft.com Fortunately for actors, Her next words are: “And
99.4 per cent of Alphabet revenues and Twitter: @andrewtghill they don’t have to give here’s what we’re going to
concession speeches. do”: That’s the past: now, the
Politicians do. So let us future.
direct this column’s camera Of course, the vision of
to Bernie Sanders’s defeated the future she paints is all
opponent Hillary Clinton about the past: she aims to
after the results of the New acknowledge why people
Hampshire primary. voted for Sen Sanders —
Having lost a battle, her and argue that those are the
job was to minimise the reasons they should vote for
effect on her chances of her. She apes his moral
winning the war. Her clarity in her anaphora: “It
immediate audience was a isn’t right . . . It isn’t right . . .
friendly one — her
campaign workers — but
It isn’t right . . .” Then she
uses a pivotal antithesis:
with the world watching, her “Now, people — people have
energy would be vital to
projecting how her defeat
every right to be angry. But
they’re also hungry. They’re
would be judged. hungry for solutions.”
So she used the friendly
energy of the audience (not
Translation: “You voted
for Bernie because you’re
to mention the visual effect angry; I’m angry too but I’m

W
hen Ministry of Sound of a sea of blue placards), the one who can actually do
opened in a disused bus corralled it and projected it something about it.” She
garage in Elephant and back out. dresses herself in Mr
Castle in 1991, the Lon- You can read her speech Sanders’s colours of
don superclub attracted almost like a mood-board of campaign finance reform;
hordes of ravers — but it also became a positions and emotions. Wall Street versus Main
target for organised crime. Foremost, she wanted to Street; equality; even
“This part of town was really danger- project good grace, humble campaign donors “giving
ous back then,” says Lohan Presencer, gratitude and positivity — a less than $100”. Above all
chief executive, as house music throbs positivity that she affects to she makes defeat a virtue: “I
quietly in the background of the com- draw from the enthusiasm of know what it’s like to
pany’s open-plan office. “Nightclub land her supporters. She needs stumble and fall . . . it’s
is surrounded by gangsters and drug the supporters to keep whether you get back up.”
dealers. We had to fight those people. motivated and she needs Losing in New Hampshire,
And it made us tough guys.” the world to see that those in this account of it, gives
Surviving for 25 years in clubland was supporters are motivated. Mrs Clinton the one thing
no mean feat. Nor was Ministry’s expan- “Thank you — all — very, she has always lacked:

Ministry of Sound fights for

sion to become an international dance very much. My goodness! I outsider chic.
music brand and owner of one of don’t know what we’d have
the UK’s biggest independent record done tonight if we actually artofpersuasion@ft.com
labels. won. This is a pretty exciting
The company is, however, facing event, and I’m very grateful The writer is the author of

niche on digital dance floor

some of its largest challenges yet. In par-
ticular, its biggest business — selling
dance music compilations — is under
threat from the rise of streaming serv-
ices such as Spotify and YouTube.
Ministry has sold more than 70m
compilation albums to date, under
brands such as Hed Kandi and Chilled
House Ibiza.
“We’re extremely good at compiling,
selecting, mixing and marketing pack-
ages of music. We know the music to
choose,” says Mr Presencer. A musician
in his spare time, he plays a broad vari-
ety of instruments, ranging from the
piano to the drums.
To make its compilations, Ministry
licenses records from other labels. This
model works well when it comes to CDs
and downloads. But streaming services
only pay the owners of the underlying
copyright, leaving no room for Ministry
to be rewarded for its expertise in song
curation.
Mr Presencer is well aware of the
problem. Even though people are
increasingly listening to music through
streaming services, he is quick to knock
back suggestions that the CD and down-
load businesses are about to disappear.
“I remember being told back in 2000
that by 2005 the CD would be dead,” he
chuckles.
“We sold 2.3m of them last year —
more than we have done in any previous
year in our history. There’s plenty of life
in the CD yet, and there’s plenty of life in
the download business yet.”
Yet the company’s revenues are under
pressure. Between 2011 and 2014, the
last year for which its accounts are pub-
licly available, Ministry’s turnover fell
from £41.6m to £38.2m, as album
prices declined. Even so, operating
profit rose from £3.9m to £6.3m, thanks
in part to a shift from CDs to downloads,
which do not carry the financial bur-
dens of manufacturing and distribution.
To hedge against a decline in its com-
pilations business, Ministry is trying to
develop its own catalogue of recordings.
To that end, the company has built a
small roster of artists, including Exam-
ple, Wretch 32 and London Grammar.
‘All wrong’: Mr Presencer says that Ministry and
Ministry CEO London Grammar are “thinking very
Lohan Presencer carefully” about whether the band’s
criticises big next release, due this spring, should be
record labels for made available on streaming services.
their approach Its first album, which was withheld from
to pricing Spotify, sold more than 1.5m copies
streamed music worldwide.
Charlie Bibby
“Ultimately if you believe that you
have a really high-quality album, then
you have to have the integrity to say ‘I
want you to buy my album,’” says Mr
Presencer.
The 45-year-old has emerged as one
of the most outspoken critics of stream-
ing services and blames the three major
record labels — Universal, Warner and
Sony — for creating a “pricing structure
for streaming that is all wrong”.
The problem, he says, it that consum-
ers have been given just two choices
when it comes to streaming music: they
can listen to an advertising-supported
service for free, or pay £120 a year for
access to a premium service.
Free services offer listeners less flexi-
bility than paid ones, but for most peo-
ple they are good enough. Spotify, which
offers both a free and a paid tier, said last
year that three-quarters of its 75m users
listen for free. YouTube has 1bn users.
“There’s a whole generation, my kids’
generation, who never acquired the
For years, the global recorded music
Digital market has been shrinking and rapid
pain growth in streaming services has so far
failed to compensate.
Record labels’ revenues dipped 0.4 per
A record of cent to $15bn in 2014, the last year for
declining which figures are available.
The same year, subscription revenues
revenues rose 39 per cent to $1.6bn, according to
IFPI, a record industry body. Meanwhile,
subscribers to streaming services
reached an estimated 41m.
habit of paying for content and the
assumption that they’re going to hit 18
and fancy paying £120 a year for a sub-
scription is completely misplaced.”
The father of three also argues that
the arrival of “all-you-can-eat” paid
streaming services now limits the
amount of money the music industry
can make from hardcore music fans
who used to spend more than £120 a
year on CDs or downloads. “The indus-
try is cannibalising itself,” he says.
Mr Presencer grew up in Watford and
£6.3m
MinistryofSound’s
operatingprofitin
2014—upfrom
£3.9min2011
studied acoustic engineering at South-
ampton University in the early 1990s,
when rave culture was sweeping the UK,
and he would organise all-night dances.
After graduating, he worked at a
small record label and then Warner
Music, before joining Ministry to run its
compilations business. He was
appointed chief executive of Ministry in
2008, taking over from James Palumbo,
the Etonian founder who remains its
biggest shareholder.
Mr Presencer’s unusual first name
was given to him by his father, an
anthropologist specialising in Tibet.
Lohan means a Buddhist monk who has
achieved enlightenment. “He thought
an odd name would stand me in good
stead for the rest of my life. And I’ve got
to say he was probably right, though it
didn’t really do me any favours at
school.”
Unlike his Buddhist namesakes, Min-
istry’s chief executive frequently gets
into skirmishes with rivals. “I don’t go
looking for a fight,” says Mr Presencer
with a grin. “But if one comes along I’m
bang up for it.”
In recent years, the company has been
battling Oakmayne, a property devel-
oper, over the planned construction of
residential accommodation close to the
club’s entrance. Ministry feared that
complaints from new residents could
end its 24-hour licence and threaten its
survival.
But under terms of a deal agreed in
2014, the developer will incorporate
acoustic glazing, sealed windows and
internal “winter gardens” to address the
club’s concerns. Residents will effec-
tively also “sign away” their rights to
complain about noise through a specific
reference in their deeds.
The club recently became even
louder, after Dolby, the audio technol-
ogy group, fitted it out with 60 addi-
tional speakers to create “the world’s
first surround sound dance floor”. Soft-
ware allows DJs to move the sound
around the venue — impossible with a
stereo system.
Ministry is also selling a range of
branded speakers and headphones in a
drive to diversify. Mr Presencer says it is
working with a large gym chain “to
improve the music experience in their
environment”.
Peers in the record business predict
that the company is likely to suffer
badly in the years ahead as streaming
squeezes its CD and download compila-
tions business. But Mr Presencer says he
is “super confident in our ability to navi-
gate those changes, because we always
have done”.
“Music companies are going to have to
find cleverer ways to monetise what
they deliver,” he says. “Ministry of
Sound is in an incredibly fortuitous
position, because people have a rela-
tionship with us, not just with our con-
tent.”
to all of you. I want to begin
by congratulating Senator
Great place to meet
Claudette, New York
Where 24 Fifth Avenue
Plug sockets/WiFi No/Yes
Open Weekday 11:30am-3pm (Sat/Sun from 10:30am); 5:30pm-11pm
New York Fashion Week in
February is a glamorous but
bone-chilling affair. Between
shows, fashionistas looking
to rest their cold, weary,
stiletto-wearing feet (10
inches of snow or not, it is
still fashion) are assured of a
friendly welcome at
Claudette, in the heart of
Greenwich Village.
Close to the fashion week
hubs of Chelsea and
downtown Manhattan, and
steps from Washington
Square, this casually elegant
Provençal restaurant
attracts a mix of fashion
industry people, professors
from nearby New York
University and bankers.
A quiet escape from
Manhattan’s hustle and
bustle during the day, it is an
ideal place to catch up over
lunch. With a chic but
homely French country-style
‘You Talkin’ to Me?’ Rhetoric
from Aristotle to Obama
Espresso $4.50
Privacy AAAEE
setting, grab a rattan chair
at a whitewashed table and
enjoy Provençal-meets-
North African fare such as
Corsican mint salad or
grilled daurade with roasted
cherry tomatoes.
In the evening it has more
of a party atmosphere. Take
a seat at the marble bar and
enjoy an excellent cocktail
before dinner or, if you are
lucky, the usually private
Flamingo Room downstairs
will be open as well. Your
very own fashion week
secret, you enter this
intimate, candlelit space,
which takes its name from
the charming bird-festooned
wallpaper, through the
restaurant kitchen. It can
also be booked for private
dinners for up to 20 people
and drinks for up to 40.
Rachel Garrahan
Tuesday 16 February 2016 ★ FINANCIAL TIMES 11

ARTS

Uncle Johnny in a whole new light

DA N C E

THEATRE
Uncle Vanya
Almeida Theatre, London
aaaae
Ian Shuttleworth
Chekhov’s characters go endlessly
round in circles at a snail’s pace: discuss.
Well, it’s literally true in Robert Icke’s
staging of Uncle Vanya: the raised box in
which the (in)action takes place con-
stantly rotates slowly, at one revolution
per 35-to-50-minute act. Icke also
deploys three intervals, leading to a
near-three-and-a-half-hour total time:
last year at this address he coped with
the entirety of the Oresteia trilogy plus
scads of additional material in only a
few minutes more.
His own adaptation thoroughly mod-
ernises and despecifies matters: names
are Anglicised so that the title character
becomes Uncle Johnny, another charac-
ter reads a copy of what appears to be
Le Monde, and the trio of drunks in
Act Two bellow out Iggy Pop’s “Lust
For Life”. This sounds as if it allows the
universality of the play full rein, but
in fact it creates far more problems than
it solves.
It removes the underlying, suppos-
edly characteristic Russian melancholy
which Chekhov was so masterly at anat-
omising, and also the physical geo-
graphical basis of the characters’ sense
of isolation. The play is not just de-
Russified but thoroughly deracinated.
There seems, too, to be rather less com-
passion in the fabric, so that our laugh-
ter at the characters’ assorted delusions
regarding their worth is more unambig-
uously that of derision without being
shot through with rueful recognition.
And yet. And yet. And yet this hot
young director’s Ivo van Hove-ish
approach to the play, staging it with an
almost unmodulated low-key ultra-
naturalism, penetrates deeply. The
updates most strikingly benefit Jessica
Brown Findlay’s Sonya, dressed in
grungy earth tones and painfully aware
of her young-adult repressions and frus-
trations. Tobias Menzies as visiting doc-
tor Michael (more usually known as
Astrov) is also dexterous at portraying
an ostensibly offhand cynicism while
nursing a secret kernel of self-regard.
As for Paul Rhys’s John, he seems con-
stantly on the verge of breakdown into
either tears or rage: his explosion in Act
Three is both more plausible and more
dangerous for the sense that he has been
hanging on for so long by his fingernails.
Icke’s production does not by any
means have all the answers to staging
Chekhov for a 21st-century British audi-
ence, but it does possess an infectious
keenness in questing for them.
To March 26, almeida.co.uk
C L A S S I CA L M U S I C
La Commedia
Barbican, London
aaaee
Richard Fairman
Lucifer with three faces prowls the
stage. The Ship of Fools is packed with
bawdy souls and ready to depart. Here
is a series of mystical and macabre tab-
leaux that cross Dante with Hierony-
mus Bosch. Add music that is stridently
modern, or occasionally reimagined
Baroque, with periodic irruptions of
cabaret and electronics — and what do
you have?
The straightforward answer is La
Commedia, a film-opera in five parts by
Louis Andriessen. Getting its first UK
performance, this was the centrepiece
of the BBC’s “Total Immersion” week-
end devoted to the Dutch composer’s
music. The timing, too, was fortuitous:
Andriessen’s latest stage work, Theatre
of the World, will have its premiere in
Los Angeles in May.
It is more difficult to say what La Com-
media is intended to be. Perhaps it
would have helped if the accompanying
film had been part of the package
(especially as the BBC Symphony
Orchestra has been trying its hand at
concerts with video in recent years).
As it was, the music stood alone, the
only coup de théâtre being Claron
McFadden’s starry entrance as an
angelic figure in a dazzling beam of light
hitting notes from the stratosphere.
Shorn of its film, and with no clear
narrative, La Commedia is hard to pin
down. At one moment it is an oratorio,
rousing the dark forces of the under-
world with Stravinsky-like brass
chorales and a small choir of eight
amplified voices on the lines of a Ren-
aissance choral group (the excellent
Synergy Vocals). A few moments later
the tone will turn ironic and the ambi-
ence changes abruptly from the church
to a nightclub.
Cristina Zavalloni sings in a popular
Italian style. Kurt Weill, even schmaltzy
Hollywood, poke their noses in. Per-
haps the intention was to create in
music the equivalent of a Bosch trip-
tych, where the saintly and the vulgar
sit side by side.
It is extraordinary that Andriessen
manages to hold all this together. But he
does and the BBC Symphony Orches-
tra’s performance, a model of control-
led extremes in the hands of conductor
Martyn Brabbins, made a strong and
highly dramatised impact.
Whatever else this wildly all-
embracing glimpse of heaven and hell
represents, Andriessen is certainly
never boring.
barbican.org.uk
Strapless
Royal Opera House, London
aaaee
Clement Crisp
It is difficult to know quite what to make
of Strapless, the creation that the Royal
Ballet has placed at the heart of a triple
bill of works by Christopher Wheeldon.
It claims to deal with John Singer Sar-
gent’s portrait of Mme Pierre Gautreau,
which caused a sensation at the Paris
Salonof1884.
The reason was not the brilliancy of
Sargent’s art but rather the hints of erotic
promise in Mme Gautreau’s pose: the
provocative figure turning away from
the viewer in her black dress, one shoul-
der-strap fallen off. In the stuffy confines
of the Parisian haute bourgeoisie, Mme
Gautreau’s reputation as the wife of a
successfulbankerwasdestroyed.
On these shifting social sands Wheel-
don has erected a choreographic extrav-
aganza that also involves Sargent’s own
ambivalent sexuality; his bravura por-
trait of the celebrated gynaecologist Dr
Pozzi; a corps de ballet busily rhubarbing
Naturalism: from far left, as Parisian society; strenuous copulation
Paul Rhys, Jessica Brown between Mme Gautreau and Pozzi;
Findlay and Vanessa heavy-duty and overactive scenery by
Kirby in ‘Uncle Vanya’. Bob Crowley; a boisterous score from
Below: Natalia Osipova Mark-Anthony Turnage; and Natalia
in ‘Strapless’ Osipova, clutching at straws as Mme
Manuel Harlan Gautreau. The piece lasts 45 numbing
Bill Cooper
minutes,andsayslittleaboutitsprotago-
nists or their world, save to suggest that
Osipova and Edward Watson (as Sar-
gent), the admirable Matthew Ball as
Sargent’s favoured chap, and Federico
Bonelli (very fine as Pozzi) should start
digginganescapetunnel.
The other works are plotless realisa-
tions of music that explore Wheeldon’s
abledance-making,andwerefirststaged
for US companies. After the Rain uses pal-
lid scores by Arvo Pärt and is redeemed
by a touching duet, well done by Mari-
anela Nuñez and Thiago Soares; Within
the Golden Hour contrives to surmount
the string-writing of Ezio Bosso and pro-
vides Wheeldon with the occasion to
challenge and illuminate his cast with
dancesoffluentskill.Anensembleledby
Beatriz Stix-Brunell and Vadim Munta-
girov; Lauren Cuthbertson and Matthew
Golding; Sarah Lamb and Steven McRae,
doesadmirablywell.Cheersforthem.
To March 11, roh.org.uk

Tame Impala vs the Tarzans

POP
Tame Impala
Alexandra Palace, London
aaaee
Ludovic Hunter-Tilney
Is there a less psychedelic experience
than being drenched by a pint of warm
fluid whose provenance it would be best
not to dwell on?
That was my fate during Tame
Impala’s set at Alexandra Palace. Like
the two nights they played at the
10,000-capacity venue, the liquid pro-
jectile marked the Australian band’s
entry into the upper tier of mainstream
alternative rock. At that moment it felt
less like an elevation than a descent.
The gig, the second of two at the north
London venue, opened with a powerful
statement of their new status. Led by
mainman Kevin Parker, they played a
massively beefed-up version of “Let It
Happen”, the first track of their latest
album Currents. Distorted psych-rock
guitars melded with a lithe synthesiser
rhythm, building towards a big peak
and an explosion of confetti. It was ideal
for the expansive spaces they now com-
mand, a far cry from the introspective
style of old.
Tame Impala have always been
Parker’s one-man project, expanding
outwards from the reveries of 2010’s
InnerSpeaker and 2012’s follow-up
Lonerism. Back then Parker’s songs
were caught between inertia and
ambition, a tension expressed by
the interaction of washed-out vocals,
swirling layers of guitar and driving
drums. The way touring drummer Jay
Watson brought “Why Won’t They
Talk to Me?” to the boil tonight typified
the style.
A deliberate juxtaposition at the
heart of the set showed how far Parker
has moved on with Currents, a top five
hit in the US and UK. It was between the
prehistoric glam-rock stomp of Loner-
ism’s “Elephant”, which ended with a
wild drum solo, and the smooth key-
board pulse of new song “Yes I’m
Changing”, for which Parker aban-
doned his guitar and pedal effects to
perambulate the stage with a micro-
phone, clutched with both hands as
though for dear life.
It is a bold evolution. But shorn of the
amplification that transformed “Let It
Happen” at the start of the set, it also
brought about a lull in the action. That
was when I was drenched: the “Tar-
zans” in big rock audiences (as Parker
once labelled them) get bored easily.
Pleasing them is one of his duties now. It
can be done — a rousing finale with
“New Person, Same Old Mistakes”
showed that — it’s just a shame that it
has to be done.

World tour continues to September

Broader horizons: Kevin Parker, centre, and Tame Impala — Andrew Benge/Getty tameimpala.com

OPERA
Manon Lescaut
Metropolitan Opera, New York
aaaee
Martin Bernheimer
The celebrated diva Montserrat Caballé
used to be the butt of a rather serious
joke. “She will be available this season,” it
was often scoffed, “for a limited number
of cancellations.” Now, the same rueful
sentiment applies to a celebrated divo,
Jonas Kaufmann. He seems to be availa-
ble this season for a limited number of
disappearances.
And so it was on Friday at the Met.
Amid endless brouhaha, the German
tenor was supposed to glamorise a new
production of Puccini’s Manon Lescaut,
with Kristine Opolais (pictured) illumi-
nating the title role. Exit Kaufmann,
whose ongoing withdrawals, officially
attributed to illness, also caused aban-
donment of a major recital at Carnegie
Hall in January. Enter Roberto Alagna.
Although he had never sung the part of
Des Grieux before, Alagna demonstrated
his customary would-be heroic bravado.
He preened with unabashed vigour and
made pleasant sounds when not forcing
forimpact.Opolaismanagedtomakethe
tragic heroine both voluptu-
ous and vulnerable, also
properly magnetic and
pathetic. She even
dared sing softly on
occasion. Her sweet soprano
pulsed with a slight vibrato,
which is fine — unlike a trem-
olo,whichisnot.
The supporting cast was
dominated by Brindley Sher-
ratt, brilliantly sinister as
lusty old Geronte. Young
Zach Borichevsky intro-
duced a vocally apt, physi-
cally towering Edmondo,
with Massimo Cavalletti
rather perfunctory as
Manon’s shifty brother. Fabio Luisi, soon
to be liberated from his duties as princi-
pal conductor here, balanced passion
and poetry sensitively in the pit. He will
bemissed.
Richard Eyre’s staging, introduced in
Baden-Baden two years ago, pretends to
mirror film noir. It advances the action
from the second half of the 18th cen-
tury to the 1940s, an irrelevance that
does little beyond allowing some
extras to march about empty
spaces sporting Nazi gear. Rob
Howell’sset,amodified-unitjumble
that impedes narrative logic, fea-
tures, among other oddities, an Art
Nouveau hotel, a symbolic arena,
arching window backdrops, a ver-
ismo prison and, of course, stylised
architecturalcrumblesattheend.
Some boos clashed with the inevi-
table bravos during curtain calls.
Such would seem to be de rigueur
thesedaysatthemightyMet.
ToMarch11,metopera.com
12 ★ FINANCIAL TIMES Tuesday 16 February 2016

Winner takes mall

Hammerson’s shares have tracked the sector as its net asset value recovered
after the financial crisis. Its interest cover looks reasonable and buoyant
consumer spending should keep vacancy rates low

Share price and sector index Growth in UK retail sales

Twitter: @FTLex Email: lex@ft.com Rebased Annual % change (3-month average)
Hammerson 6
FTSE 350 Real Estate index 120
100 4
Twitter: targets might, in theory, be useful too. Reckitt Benckiser:
80
But striking the right balance is 2
rubbing the right way difficult given the uneven job market in 60 cleaning up
Silicon Valley. Holding managers’ feet 40 0
The venerable Goldman Sachs unveiled to the fire is less effective when rivals 20 Organic growth, naturally. All company
a new performance-based pay plan for are offering foot massages. 0 -2 chief executives at some point extol the
executives last year. The much younger 2007 08 09 10 11 12 13 14 15 16 2010 11 12 13 14 15 positives of slowly expanding a
Twitter decided last week to follow business, feeding it gently, without
suit. Both cited “investor feedback” as China: Hammerson’s net asset value Net debt/ebitda having to graft on other ones.
the catalyst for review. At one level, EPRA net asset value (pence per share) Reckitt Benckiser once bought its
this is a box-ticking exercise demanded new year cheer 1000 Intu 14 growth, collecting brands willy-nilly.
by a few institutional investors. The 800 Westfield 12.5 No more. Its chief executive Rakesh
interests of managers and shareholders Actions, we are told, speak louder than 600 Kapoor has raised the company’s core
Hammerson 9.6
at Twitter are in theory already aligned words. If so, then China looks in good 400 growth rate, pruning laggard divisions.
200 Klepierre 9.1
— chief executive Jack Dorsey owns shape. Yesterday, the country’s Yesterday’s full-year earnings report
more than 3 per cent of the company. markets reopened after the week-long 0 Simon Property 5.6 from Reckitt revealed that Mr Kapoor
2007 08 09 10 11 12 13 14 15
Goldman made that argument for Chinese new year holiday. While China FT graphic Sources: Thomson Reuters Datastream; S&P Capital IQ
has got his potting compost just right.
years but when the board eventually was closed, Japan’s equity markets Sales rose on a like-for-like basis, led
caved, there turned out to be an slumped one-tenth in US dollar terms, by a strong 14 per cent jump in its
indirect benefit. The investment bank and the Japanese yen surged. Shoppers’ feet are pounding the results showed the final dividend up a have been 80 basis points lower than health products group — one-third of
had always refused to set a public Yet Shanghai’s return did not floors at Hammerson’s UK shopping tenth, net asset value a bit more. the 3.1 per cent reported were it not group sales.
target for returns but the creation of a exacerbate the regional sell-off: the centres and its key financial metrics Bears worry about its leverage, for “premium outlets” such as Even better, gross profit margins —
performance-based stock plan index opened down 3 per cent then look to be marching in the right relatively high despite a £400m equity Bicester Village, which are held an indication of pricing power —
required some goals; the board selected rallied through the day. The renminbi, direction, too. Growth in earnings per raising two years ago, and say it has through ventures with several other improved more than two percentage
an average return on equity of 11 per meanwhile, had its strongest bounce share has averaged 9 per cent a year bought assets in Birmingham and investors. The spoils from its points on the previous year. This comes
cent over a two-year period. That looks since 2005, up more than 1 per cent, since 2011. For net asset value, the Dublin at full prices that will be hard to promising redevelopment of a centre despite the loss of its higher margin
a stretch in today’s environment but especially curious after January trade figure is 8 per cent. Move the start justify when the cycle turns. in Croydon (a south London suburb) pharma unit Indivior, which was spun
appeared achievable when it was set. data highlighted China’s poor economy. date back three years and the figures Hammerson points out that it has will have to be shared with Australia’s out in 2014. Reckitt’s shares did well,
When Twitter produces its targets it Exports fell more than one-tenth year- look very different: 0.6 per cent and taken advantage of low interest rates to Westfield. Wholly-owned assets tend up 7 per cent.
will also provide a window into how the on-year, overshooting the anticipated 0.14 per cent, respectively. That refinance its debts; its weighted to be retail parks and less All geographic regions flourished,
company is thinking about its future. 2 per cent drop. Imports, meanwhile, serves to remind investors that average cost of debt is now 3.8 per cent “experiential” malls. including emerging markets. A more
The first requirement is to pick a contracted one-fifth in US dollar terms property is all about the cycle but and will fall further as it refinances a A buoyant jobs market and lower profitable mix of product sales,
metric everyone cares about. Bank — again, far worse than forecast. does not tell them exactly when the revolving credit facility and sells more fuel costs — in effect, a tax cut for towards health and hygiene products
investors certainly care about ROE. These figures say more about the cycle might next turn down. assets. It has also cut its operating costs consumers — should underpin retail (think condoms and toilet cleaners)
Twitter’s shareholders are probably parlous state of the external situation Nor does Hammerson’s share price. and brought in partners. sales and keep shopping centres busy. also made a difference. True, the
more exercised about user growth. than they do about China — exports to Last week, it was down 13 per cent That reduces risk but also means If Hammerson is to continue recovery in gross margins still leaves
Then to calibrate it; if monthly active the EU, among others, were year to date. But it bounced 5 per that Hammerson is not always in direct delivering increases in NAV and them short of their 2010 peak of 60 per
users is selected, what will Twitter use particularly poor. And while the import cent yesterday. That partly reflects a control of some of its most promising dividends well above its rental cent. Also, an unsustainable boost
as the “Goldilocks number” — not so figure suggests a slowdown in internal decent operational performance: its assets. Rental growth in 2015 would growth, it will need that tailwind. came from a lower than expected
easily attainable as to be meaningless, demand, it was unduly influenced by effective tax rate of 20 per cent.
but not so ambitious as to be unachiev- collapsing commodity prices. Iron ore Still, when a CEO tells the market
able? User numbers were growing at 40 imports, for instance, grew 5 per cent what the plan is and duly delivers,
per cent annually just two years ago; in volume terms but dropped one-third currency devaluation and capital the year before. Profits there have Asia accounted for a third of operating expect his company to command a
but today they are stalling and even 10 in value terms, according to HSBC. controls. Perhaps words carry more grown an average above 8 per cent profits last year, has just one. premium valuation. Reckitt has that in
per cent would be an improvement. Other parts of China’s domestic weight than actions after all. since chairman Douglas Flint was Last year, HSBC announced that it spades. The shares trade at 24 times
The weak performance is shown by economy are doing just fine. Chinese appointed to the board in 1995; the would bolster the number of non- forward earnings, historical highs even
an existing pay scheme, which includes new year spending on food and retail comparable figure for Europe is 4 per executive directors. The result was relative to its rivals.
no targets but requires the board to rose 11 per cent year-on-year, HSBC: cent. HSBC has announced plans to more Europeans: Henri de Castries, of Its premium to the MSCI European
considerhowTwitteris doing compared according to the Ministry of Finance. redeploy about a sixth of its $2.5tn French insurer Axa, and Paul Walsh of Household Goods index has rarely
with a peer group of 17 named comp- Leisure pursuits, in the consumer- eastern promises balance sheet to Asia, especially China’s Compass (and former boss of Diageo, a been much higher, a problem if
anies. Even though the group contains driven economy, fared even better. Pearl River Delta region, to further big player in emerging markets). expectations remain so high in the year
long-term strugglers such as Yahoo, Cinema box office take rose 80 per cent The decision by HSBC to remain in capitalise on growth there. True, at the operating level, locals ahead. Mr Kapoor himself undersells
LinkedIn and Pandora, shares in year-on-year for the first three days of London rather than up sticks to Hong Despite its eastward bent, HSBC are well represented. A majority of the any chance of repeating such a strong
Twitter have fared worse in the past 12 the holiday, equalling revenues for the Kong should surprise no one except for appears to have just two Asian directors of HSBC’s Hong Kong retail performance.
months than all except Zillow. entire week-long holiday last year. credulous Canary Wharf estate agents nationals on its 19-strong board. Both bank are drawn from the region. But He must show that the margin gains
There is a case for setting a high bar And people travelled, too: visitors and anxious UK government officials. are non-executive directors. Other appearances and connections count for of the past year came not just from
in the new plan. But Twitter also has a to domestic attractions such as The bank says its strategic focus will financial groups with large Asian a lot in Asia and the lack of Asian faces some fortuitously low-hanging fruit,
retention problem, which it acknow- Chengdu’s panda reserve rose more remain on Asia. If so, it should consider operations have similarly low regional in the group boardroom sits oddly with but a deep-rooted strategy.
ledged with a sensible policy change: than two-fifths. reflecting that bias in its boardroom. representation. Standard Chartered, HSBC’s ambitions. As the bank’s board
delaying the vesting period on share Despite these encouraging signs, Asia remains the engine room of the which derived over 70 per cent of evolves — Mr Flint is expected to step
awards. Executives will need to stick Zhou Xiaochuan, People’s Bank of bank’s earnings. It accounted for 64 per pre-tax profits from Asia, has three down during the coming year — it Lex on the web
For notes on today’s breaking
around longer to get their payout. China governor, made the difference. cent of HSBC’s adjusted pre-tax profits nationals from the region out of 15 would be appropriate for some of that stories go to www.ft.com/lex
Challenging them to stiff performance Over the weekend, he calmed fears of in 2014, a 2 percentage point rise from board members. Prudential, where talent to relocate to London.

Today’s temperatures
Abu Dhabi Sun 24 Malta Sun 20
-1 Amsterdam Sun 6 Manila Fair 29
Ankara Sun 18 Miami Cloudy 27
LOW 1
-1 Athens Sun 22 Milan Rain 10
21 3
LOW Bahrain Sun 23 Montreal Snow 3
Barcelona Sun 14 Moscow Snow 3
Beijing Sun 8 Mumbai Sun 31
Belfast Rain 8 Munich Cloudy 5
9 Belgrade Cloudy 12 Naples Sun 20
I H 4 10 Berlin Cloudy 4 New York Rain 12
4 Brussels Sun 4 Nice Shower 14
8 Budapest Rain 10 Nicosia Sun 27
3 Cairo Sun 29 Oslo Sun 1
Cardiff Fair 8 Paris Sun 6
6 0 Chicago Cloudy 4 Prague Cloudy 3
4 Cologne Sun 4 Reykjavik Snow 2
22
Copenhagen Sun 3 Riga Cloudy 2
2 Delhi Sun 24 Rio Thunder 32
18 Dubai Sun 23 Rome Shower 16
22 38 Dublin Rain 9 San Francisco Sun 23
Edinburgh Rain 7 Singapore Fair 32
3 8 0 Frankfurt Fair 4 Stockholm Fair 1
14 Geneva Cloudy 6 Strasbourg Cloudy 5
27
Hamburg Sun 3 Sydney Fair 25
Helsinki Sun -1 Tokyo Sun 8
17 O
Hong Kong Fair 15 Toronto Snow 3
Istanbul Sun 19 Vancouver Fair 11
3
Lisbon Sun 13 Vienna Fair 8
Wind speeds in PH 26
London Fair 8 Warsaw Cloudy 4
Forecasts by Los Angeles Sun 30 Washington Shower 10
Wind speed Luxembourg Sun 2 Zagreb Rain 7
in KPH Madrid Sun 8 Zurich Cloudy 4

CROSSWORD
No. 15,165 Set by SAYANG
        ACROSS DOWN
1, 4 Our melodic dish cooked with 1, 21 This sleuth, he’ll shock Morse
salt (6,8) electrifyingly (8,6)
  9 Did not start credible sanction 2 The stuff of a play (8)
(6) 3 Horrible fruit caught (4)
 10 Tease apprentice, maniac for 5 Vital malfunctions disrupted
  
snack food (8) hackers at Tate endlessly (5,7)
12 Flunkey returned spoils (4) 6 No Turkish man will toe the line
  13 Beat with stick initially (5) (4)
14 J.B. Ranson stocking some 7 Pay no attention to soldier

roughage (4) upset about having to accept a
 
17 Military tribunal punished negative answer (6)
matriculator (5,7) 8, 19 Denigrator dies from
 20 Transit stop is area with car and alimentary ailment (6,8)
van being damaged (12) 11 Totally bonkers as Alice
 
23 The burden old star rejected (4) discovered (3,2,1,6)
   24 At the end of day, to stare and 15 Reference book a sailor
gape is awkward (5) returned (5)
  25 First person to be upset during 16 Light wood used in herbal salon
 
party protest (4) (5)
28 More than half reached the age 18 Not a slave delivered without
of consent (8) charge up-front (8)
29 Look at husband in admonition 19 See 8
 
to grow up (6) 21 See 1 down
30, 31 Heckling pack or sneerers at 22 Base evacuated to
this part of Hyde Park (8,6) accommodate Jack in a French
extreme jumping sport (6)
JOTTER PAD 26 Streaker getting arse kicked
violently during trip (4)
27 Star lover whose lamp went out
tragically (4)
Solution to Saturday’s prize puzzle on Saturday February 27
Solution to yesterday’s prize puzzle on Monday February 29
Winners’ names will be printed in Weekend FT
Tuesday 16 February 2016 ★ 13

Bridgestone Airbus Reckitt Xetra Dax Euro/dollar Gold Nikkei 225 Copper (LME)
Distressing Hazards of debt Benckiser
exchange manoeuvres 11.60% 4.03% 6.79% 2.7% 0.9% $28 7.2% 1.4%
SUJEET INDAP, PAGE 14
¥3,984 €53.38 £6,371 9,206.84 $1.1156 $1,209 16,022 $4,562

Shell says Brazil oil will break even Short

3 Forecast a boost for deepwater fields 3 BG tie-up adds bulk but Petrobras fears remain
View
four times their current combined pro- Petrobras last year estimated that the scepticism had been fuelled by policy
Elaine
Moore
JOE LEAHY — RIO DE JANEIRO
CHRISTOPHER ADAMS — LONDON duction. But the collapse in the oil price, pre-salt fields would break even at an oil ‘I would blunders by the Brazilian government,
with Brent crude trading about $30 a price of $45 a barrel, or $52 if natural gas expect the such as requiring Petrobras to be the
Ben van Beurden, chief executive of barrel, has raised questions about the was also extracted. sole operator of the fields.
Royal Dutch Shell, has forecast that oil viability of the Brazilian fields. Mr van Beurden said Shell was confi- pre-salt in There are concerns about the techni- Finding a coherent explanation for yesterday’s stock
prices will rebound this year to levels There are also concerns about Petro- dent it had no exposure to legal claims Brazil, the cal challenges of drilling and extracting market rebound is about as rewarding as trying to deci-
that allow production in Brazil’s deep- bras, Brazil’s state-controlled oil com- arising from the Petrobras scandal. He oil from fields that in some cases lie up pher the logic in Kanye West’s Twitter feed. Just as the US
water fields to break even. pany, which is sole operator in the fields, added that Shell would be open to break-even to seven kilometres under the Atlantic rapper sees no reason to explain why he regards himself as
Shell is a leading investor in Brazil’s because the group has been hit by a cor- exploring opportunities from a divest- price, to and 300km from land. this generation’s Walt Disney, prices in global markets are
offshore fields — known as pre-salt ruption scandal and is contending with ment programme aimed at reducing the But Mr van Beurden said the lower oil bouncing around with little justification.
because they lie under a layer of the a large debt load. Brazilian group’s borrowings. At be very price was changing the economics of oil Investors ignored news yesterday that Japan’s economy
compound — and has strengthened its However, Mr van Beurden told $101bn, Petrobras has the largest net favourable’ exploration, including forcing suppliers is shrinking at an annualised rate of 1.4 per cent and
position through the £35bn takeover of reporters in Rio de Janeiro yesterday: “I debt level in the energy sector. to lower their costs. “The lower the oil poured money into equities, sending the Nikkei index up
BG Group, which completed yesterday. would expect the pre-salt in Brazil, the Brazil’s pre-salt fields were lauded in Ben van prices go, the lower also . . . the cost of 7.2 per cent.
Mr van Beurden has said in the past break-even price, to be very favourable, 2007 as one of the greatest offshore Beurden, Shell establishing supply chains and in the US markets were closed for a public holiday but there
that the enlarged group’s output from probably in the sort of [oil] price ranges discoveries since the North Sea but chief executive end the cost of producing the oil. So the was similar exuberance on show elsewhere. China’s cur-
Brazil will be 550,000 barrels a day by that we think we are going to see in the excitement has cooled, partly because break-even price will come down actu- rency had one of its biggest one-day rallies in a decade.
the end of the decade — or more than course of this year.” of the Petrobras scandal. Analysts said ally with lower oil prices.” And Europe’s Stoxx 50 equity index rose 3.5 per cent, with
strong share price rises for European banks — including
Deutsche Bank, the source of extreme anxiety last week.
So far, the only explanation on offer is the possibility that
last week’s sell-off went too far. But, if that is the case, then
the turnround may be just as shortlived. Market expecta-
Hard case tions of where eurozone inflation will be in five to 10 years’
Troubled SoftBank in time refuse to budge — remaining close to their all-time
low.
$4.4bn stock buyback That suggests investors do not believe the European
Central Bank can hit its 2 per cent inflation target in the
next decade, regardless of central bank intervention —
SoftBank has revealed plans for its dulling the case for equities.
biggest share buyback: a $4.4bn show of That’s troubling enough but at least it’s transparent.
confidence that follows a steep fall in net What is more difficult to predict is the effect that global
profits and months of heavy declines in sovereign wealth funds are having on markets.
its share price, writes Leo Lewis. With oil prices remaining low, oil-exporting countries
The Japanese telecoms group said it are being blamed for fuelling market volatility by having
would buy back as much as 14.2 per cent their wealth funds sell down holdings. But, as few wealth
of its common stock, calling the timing funds report their holdings, there is no knowing exactly
of the decision, which eclipses a Y120bn what they are selling or how much.
share repurchase announced in the JPMorgan strategist Nikolaos Panigirtzoglou estimates
summer of 2015, “optimal”. that oil producers’ funds sold $160bn of assets last year.
The move will be funded through But if oil prices average $35 a barrel this year, he estimates
cash-in-hand and proceeds of asset sales they will sell close to double that in 2016. Yesterday, Brent
— disposals that have not yet been crude, the international oil benchmark, failed to break
disclosed but which analysts said were through $34 a barrel. As Kanye likes to say, the paradigm is
likely to focus on small, non-integral shifting.
holdings rather than any reduction of
SoftBank’s strategic stakes in Alibaba
and Yahoo Japan. Eurozone inflation
SoftBank said it had not yet decided expectations
whether to cancel the shares it planned 5y5y forward swap (%)
to buy back. 1.7
The announcement came five days
after SoftBank delivered its results for 1.6
the final quarter of 2015 — an
opportunity taken by Masayoshi Son, 1.5 Market
chief executive, to try to reassure expectations of
investors that his $22bn wager on US 1.4 where eurozone
mobile carrier Sprint would pay off. inflation will be in
Pictured is Softbank’s Pepper Jan Feb five to 10 years
2016
humanoid robot. Source: Bloomberg refuse to budge
Sliding profits page 14
elaine.moore@ft.com
Tomohiro Ohsumi/Bloomberg

HSBC to tackle succession next year

after Gulliver rounds off ‘pivot to Asia’
MARTIN ARNOLD — LONDON replaced as chairman in the next year on wholesale banking . . . but it would
and the bank is likely to seek a successor not have an impact on the holding com-
HSBC’s chief executive has said the
to Mr Gulliver the following year. Had pany question.”
bank will address the succession of its
the lender chosen to move overseas, the HSBC considered about six potential
top two managers by next year after it
pair could have been asked to stay on for sites for its headquarters but in the end,
decided to keep its headquarters in the
a few more years. its 10-month review came down to a
UK.
Mr Gulliver said that if the UK voted choice between London and Hong Kong.
Etihad code-sharing push Stuart Gulliver, who has run the bank to leave the EU it would not trigger Ian Gordon, an analyst at Investec,
hits European snags for five years, told the FT he planned to another review of HSBC’s domicile. But criticised HSBC’s decision to stay in the
see the “pivot to Asia” strategic plan he the bank was likely to move some Lon- UK, saying: “We regard [deferred] ‘con-
Etihad’s expansion strategy of announced last year through to its con- don-based investment and corporate cessions’ granted by the chancellor last
acquiring airline stakes and sharing clusion at the end of 2017. banking staff to Paris if it faced uncer- year on the bank levy as inadequate and
codes has hit difficulties, with some “I have a programme that runs until tainty over the terms of Brexit. This see the burden of lead regulation by the
carriers needing more cash and much the end of 2017 and will work towards could affect as many as 1,000 of its UK as a high price to pay for a bank seek-
time. Its Air Berlin stake deal has that,” he said, adding that the succession 5,000 UK-based investment and corpo- ing to compete effectively in interna-
developed into a legal battle and “will be an issue over the next year or so rate banking staff. tional markets, especially Asia.”
upheaval at Alitalia has taken its toll. but you should not expect anything to “Britain’s economic interest is to Lex page 12
Gulf carrier’s challenge i PAGE 15 happen over the next few weeks”. remain in a reformed EU,” he said. Analysis page 16
Douglas Flint is expected to be “Brexit would have a significant impact ft.com/lombard

Companies / Sectors / People

Companies
Aabar Investments...................................7
Air Berlin.......................................................15
Air Serbia......................................................15
Air Seychelles............................................15
Alibaba.....................................................13,14
Alitalia............................................................15
Alphabet.......................................................10
Amazon...................................................14,14
American Airlines....................................15
Amundi..........................................................16
Anglo American..................................17,23
Apollo Global.......................................14,24
Aquis Exchange.......................................23
BG Group......................................................13
BSI.......................................................................7
Blackstone...................................................14
Carlyle............................................................24
Cerberus Capital......................................14
Chesapeake Energy...............................14
Coca-Cola.......................................................4
Credit Suisse..............................................16
Dabur................................................................4
Delta................................................................15
Deutsche Bank..........................................16
Deutsche Wohnen...................................17
Diageo............................................................12
Electrolux......................................................17
Emirates Airlines......................................15
Etihad Airways..........................................15
Flipkart..........................................................14
Freeport-McMoRan................................14
GIC....................................................................14
Gagfah............................................................17
GlaxoSmithKIine......................................10
Goldman Sachs.........................................12
HSBC.........................................................13,16
Hammerson...........................................12,23
Hargreaves Lansdown.........................23
Hays................................................................23
Hilton Hotels.............................................14
IAG...................................................................23
IEX....................................................................23
ING...................................................................22
Indivior...........................................................12
International Paper................................14
Ipic......................................................................7
JPMorgan.....................................................23
Jet Airways..................................................15
LinkedIn .......................................................12
Lufthansa.....................................................15
NTT DoCoMo.......................................13,14
NewPage Holdings.................................14
Nordea...........................................................22
Ontario Teachers’ Pension Plan....14
Pandora.........................................................12
PayTM............................................................14
Pepsi.................................................................4
Petrobras......................................................13
Qatar Airways............................................15
Reckitt Benckiser .............................12,23
Royal Dutch Shell....................................13
Shire................................................................23
ShopClues....................................................14
SnapBizz.......................................................14
Snapdeal.......................................................14
SoftBank.......................................................14
Sprint.........................................................13,14
Sumitomo ...................................................14
Tesco..............................................................10
Tiger Global Management................14
Twitter............................................................12
Virgin Australia.........................................15
Virtu Financial..........................................23
Vonovia..........................................................17
Westfield.......................................................12
Yahoo Japan...................................12,13,14
Yelp..................................................................12
Sectors
Airlines...........................................................15
Banks......................................12,16,16,22,24
Basic Resources...........................12,14,22
Energy......................................................13,14
Financial Services...................................23
Financials..............................12,13,14,16,24
Food & Beverage.....................................12
Industrial Goods......................................14
Industrials.....................................................12
Media.........................................................12,13
Mining...........................................12,14,17,22
Personal & Household Goods.........12
Property........................................................17
Retail.........................................................12,14
Retail & Consumer............................12,13
Technology............................................12,14
Telecoms.................................................13,14
Transport.......................................................2
Travel & Leisure...........................12,14,15
People
Adkerson, Richard..................................14
van Beurden, Ben....................................13
Cifu, Doug....................................................23
Dimon, Jamie.............................................23
Dorsey, Jack................................................12
Dudley, William........................................24
Flint, Douglas.............................................16
Gulliver, Stuart....................................13,16
Hogan, James............................................15
Kapoor, Rakesh.........................................12
McLoughlin, Keith...................................17
Perrier, Yves...............................................16
Presencer, Lohan....................................10
Samuelson, Jonas....................................17
Saul, Josh....................................................24
Schwarzman, Steve...............................24
Sethi, Sanjay...............................................14
Son, Masayoshi...................................13,14
Thiam, Tidjane..........................................16

© The Financial Times Limited 2016 Week 7

14 ★ FINANCIAL TIMES Tuesday 16 February 2016

COMPANIES
INSIDE BUSINESS
Telecoms
FINANCE

SoftBank launches $4.4bn share buyback Sujeet

Japanese group shows
confidence as profits and
stock price plummet
LEO LEWIS — TOKYO
Japanese telecoms group SoftBank has
revealed plans for its biggest share buy-
back — a $4.4bn (Y503.7bn) show of
confidence that follows a steep fall in net
profits and months of heavy declines in
repurchase announced in the summer
of 2015 and follows a 28 per cent slide in
the shares since the start of this year,
was “optimal”.
The company said it would fund the
buyback through a combination of
cash-in-hand and the proceeds of asset
sales — disposals that have not yet been
disclosed but which analysts said were
likely to focus on small, non-integral
holdings rather than any reduction of
SoftBank’s strategic stakes in Alibaba
Bank’s chief executive, to try to reassure
investors that his faltering $22bn wager
on the heavily indebted US mobile car-
rier Sprint would pay off. Mr Son said
last week that the company would
become one of SoftBank’s “primary
cash cows”.
Nathan Ramler, a telecoms analyst at
Macquarie in Tokyo, said it was surpris-
ing that Mr Son had not announced the
buybacks last week to accompany the
reassurances on Sprint. But he said that
Indap
Y7,000 per share and are even better
value now,” he said.
After the company’s results, analysts
said that the heavy sell-off of SoftBank
shares — part of a wider rout in Japanese
Verso’s demise shines
stocks this year — was overdone. In a
note to clients, Nomura’s Daisaku
spotlight on ‘distressed
Masuno calculated a sum-of-the-parts
valuation of Y7,570 per share — more
than 70 per cent higher than where the
debt exchange’ gambits
14.2% stock stands.
Upper limit of
common stock that The move by SoftBank comes at the

its share price.
In a move that surprised analysts and
came on a day that the Nikkei 225 Aver-
age rallied more than 7 per cent, the
group said it would buy back as much as
14.2 per cent of its common stock.
SoftBank said the timing of the deci-
sion, which eclipses a Y120bn share
and Yahoo Japan. SoftBank’s narrative was consistent.
SoftBank said it had not yet decided “They did Y120bn of buybacks a few
whether to cancel the shares it plans to months ago and the stock has come
buy back. down since then. They would have
The announcement came just five looked at the cash available and the cash
days after SoftBank delivered its results flow and decided that this would send
for the final quarter of 2015 — an oppor- the clear signal the company thought its
tunity taken by Masayoshi Son, Soft- shares were good value last August at
Technology. Ecommerce
I
SoftBank said it end of what was already a record year t is rare that a debt reduction manoeuvre sparks a 570
would buy back for share buybacks in Japan and echoes per cent spike in a company’s share price. It is even
a Y500bn buyback announcement by more peculiar that the company falls apart just two
28% its rival NTT DoCoMo two weeks ago. years later. But that is exactly what happened to Verso
SoftBank shares, which are down Corporation, a Tennessee-based paper producer
Slide in SoftBank’s
share price since almost 40 per cent over the past 12 backed by private equity group Apollo Global.
the beginning of months, closed up 5.7 per cent at Y4,400 In January of 2014, Verso announced two transactions to
this year yesterday. help ease a crushing debt load. First, it would a swap a por-
tion of its outstanding bonds for paper with a lower face
value. Then it would combine with a rival, NewPage Hold-
ings, and slash operating costs. Collectively, the moves sent
Verso shares from 60 cents to more than $4. Yet in January,
unable to make interest payments, it filed for bankruptcy.
Wobbling energy companies have replicated Verso’s

Unicorn targets role as ‘Walmart of India’
ShopClues, valued at $1.1bn,
uses an asset-lite marketplace
model to reach the masses
AMY KAZMIN — NEW DELHI
Cow-dung patties for Hindu rituals or
traditional sweets from a distant temple
town are not perhaps typical of items
bought over the internet. But Shop-
Clues, a four-year-old ecommerce com-
pany that aspires to be the “Walmart of
India”, is allowing price-conscious con-
sumers in India to do just that.
ShopClues took rivals and analysts by
surprise recently when it became India’s
latest “unicorn”, valued at $1.1bn in a
fundraising round led by GIC, Singa-
pore’s sovereign wealth fund.
The valuation — for a platform that
sold goods worth Rs790m ($12m) in the
year to April 2015 and $62.5m in
December — reflects persistent opti-
mism about online shopping in India in
spite of fierce competition and losses
in the sector.
Sanjay Sethi, co-founder and chief
‘Our image is that we are
the mass-market retailer
for the bottom of the
pyramid consumer’
executive, says the valuation is an
endorsement of ShopClues’ strategy of
operating an asset-lite, eBay-style “mar-
ketplace” — in contrast to larger, better-
funded rivals, which are pouring money
into their own warehouses and logistics.
“The marketplace is definitely a bet-
ter model for the country,” says Mr
Sethi. “It’s more capital efficient; it’s
more scalable. Execution is going to be
the key. We believe that we can run a
marketplace better, deeper and faster
than most people.”
Online shopping is one of India’s fast-
est-growing retail formats, with modern
bricks-and-mortar retailing stunted by
the dearth and high cost of suitable real
estate — and by foreign investment
restrictions.
With the rapid proliferation of inex-
pensive smartphones, Morgan Stanley
and Goldman Sachs forecast that online
retail purchases in India will reach
$100bn by 2020, from $3bn in 2014.
That potential has grabbed interna-
tional attention. Flipkart, Snapdeal and
PayTM — the largest homegrown ecom-
merce groups — have together raised
nearly $5bn, while US-based Amazon is
investing $2bn in its Indian division.
ShopClues is a minnow by compari-
son, having raised about $250m from
investors that include Tiger Global Man-
agement, which is also a big investor in
Flipkart.
But Mr Sethi says ShopClues, whose
revenues have increased fivefold, does
not need so much capital. It has spent
just $70m since inception and expects to
be profitable — and ready for an initial
public offering — in the second half of
2017, several years ahead of rivals.
“We have built a business that we are
able to sustain, and we have proven that
hyper-growth and profits are not mutu-
ally exclusive,” says Mr Sethi, who spent
seven years at eBay, most recently as
global product head, overseeing ship-
ping, logistics, payments and billing.
Flipkart, Snapdeal, PayTM and Ama-
zon India all describe themselves as
India ecommerce market size
Online retail sales (US$bn)
120
Estimates
100
80
60
40
20
0 0
2013 14 15 16
Source: Morgan Stanley
marketplaces — companies running
platforms that facilitate transactions
between independent merchants and
geographically dispersed consumers.
But most operators have been forced
to adopt a formal marketplace structure
to circumvent India’s ban on foreign
direct investment in multi-brand retail,
and do not have the “culture” of the
marketplace model “in their DNA”, Mr
Sethi says. “Flipkart and Amazon are
pseudo-marketplaces,” he says. “Indian
law prevents them from being what they
want to be, and that creates a dichotomy
in their life.”
Flipkart and Amazon are investing
Internet penetration (%)
50
40
30
20
10
17 18 19 20
Cow-dung cakes heavily to expand back-end infrastruc-
for burning in ture, including warehouses, and deliv-
religious rituals ery networks. Snapdeal too is building
are among the warehouses and has taken a strategic
more unusual stake in GoJavas, a logistics company
items that are focused on ecommerce.
bought and “The language used is of a market-
sold through place, but the actions are very invento-
ShopClues ry-led,” Mr Sethi says.
AP/Rajesh Kumar Singh
ShopClues, by contrast, has no ware-
house facilities, nor does it plan to build
any. It relies on third-party couriers to
get vendors’ wares to consumers, and
uses its own technology to manage the
process.
Sreedhar Prasad, a partner at KPMG
focused on ecommerce, says an asset-
lite model can succeed if companies can
get vendors and logistics providers to
work together, sharing the risks and the
rewards of growth. “You have to invest
in equipping the vendors and logistics
players to operate at your level,” he says.
Unlike rivals vying to serve those at
the upper reaches of India’s economic
pyramid, ShopClues focuses on lower to
middle-class shoppers whose main aim
is to secure items at an affordable price
rather than buy a specific brand. About
70 per cent of its sales come from resi-
dents of smaller towns and cities.
“We all have to create our own images,
and our image is that we are the mass-
market retailer for the bottom of the
pyramid consumer,” says Mr Sethi.
gambits in recent months in order to avert full-scale bank-
ruptcies. More than 10 energy groups including shale pio-
neer Chesapeake Energy executed “distressed debt
exchanges” in 2015. But as Verso stakeholders learned the
hard way, avoiding a clear reckoning upfront may simply
postpone (and aggravate) a total balance sheet cleanse.
Companies have discovered that the formal bankruptcy
process mostly favours lawyers billing by the hour. When
there are ways to repair a company’s finances without a fil-
ing, it could be worth going down that route. One such
method to avert court is the distressed debt exchange.
Mechanically, creditors take a reduction in the principal
amount of their bonds and perhaps accept a longer time to
maturity. In return, the bondholders receive an increased
coupon rate and, often, a higher perch in the capital struc-
ture should the company go bust down the road.
Perhaps the most fabled example of a successful
exchange was Hilton Hotels, which was acquired by Black-
stone in 2007 in a $26bn leveraged buyout. Debt reduc-
tions kept it afloat during the financial crisis and it eventu-
ally listed its shares, becoming one of private equity’s great
triumphs.
Verso’s story starts in 2006, when Apollo acquired the
coated paper division of International Paper in a $1.4bn
deal. It listed in 2008 just before the financial crisis at $12 a
share. But by early 2014, falling demand for glossy maga-
zines and catalogues sent its equity value down to $34m.
Its most junior bonds had
plunged below 50 cents on
the dollar.
Avoiding a clear
NewPage had also been the reckoning upfront
subject of an LBO, by Cer-
berus Capital in 2005. Unlike
may simply
Verso it had already gone delay a balance
through bankruptcy. As a
condition of the deal, two
sheet cleanse
junior Verso debt classes
were asked to take about a 50 per cent haircut to their prin-
cipal balance collectively in exchange for slightly higher
coupons. This proposal would have reduced Verso’s total
standalone debt from about $1.2bn to about $950m. But
the merger with NewPage added another $1.4bn of debt.
The vast jump in Verso shares irritated its creditors.
They believed that more of the value of the merger syner-
gies should have been shared with them. Contentious
negotiations dragged on for months but eventually the
company bumped up its offer to creditors. In the end the
two exchanges knocked off less than $200m of debt, leav-
ing Verso alone with $1bn of debt.
A lengthy regulatory review meant that the merger did
not close until January 2015. The realities of the paper
industry soon hit home. Revenue was declining both
because paper demand continued to fall sharply and the
strong dollar prompted a flood of imports. By the summer
of 2015 Verso shares had fallen back to 60 cents.
It may be cold comfort, but Verso said in its January
bankruptcy documents that the deal itself had worked out
nicely — of the $175m of anticipated cost savings, $125m
had already been realised. But the debt reduction piece
failed to do enough to sustain the business. When the
restructuring is completed Verso will have an enterprise
value of less than $1bn ($2.4bn of total debt is shed).
Should the bondholders then have forced a bankruptcy
two years ago? Recent Moody’s research notes that bond
recoveries in distressed exchanges exceed those when
companies file for bankruptcy — about 55 per cent versus
42 per cent. But there is a caveat: bankruptcies that are
preceded by distressed exchanges — the Verso scenario —
were worse for bondholders than if the company went
under immediately.
It may be then bondholders should get a $1,500 an hour
attorney and start fighting at the first stages of distress.
Chief executives and boards, controlled by shareholders
(particularly private equity) will have a natural bias
towards long-shot turnrounds. When their equity is
already worthless there is little to be lost in chasing a long-
shot 570 per cent pop.
sujeet.indap@ft.com

Technology Mining

Snapdeal raises $200m from Canadian fund
JAMES CRABTREE — MUMBAI
Snapdeal has secured a $200m invest-
ment from the Ontario Teachers’ Pen-
sion Plan, giving the online market-
place a valuation of about $6.5bn and
underlining its place as India’s second
most valuable start-up after rival
ecommerce group Flipkart.
Yesterday’s deal confirms that India’s
start-up scene remains attractive to
investors, amid fears that global venture
groups had turned sceptical on the
country after a year of blockbuster fun-
draising in 2015.
Snapdeal’s new round also marks the
long-awaited arrival of one of Canada’s
major pension groups as an investor in
Indian ecommerce. OTPP’s move fol-
lows a spate of deals in the country by
other Canada-based groups, including
the Canada Pension Plan Investment
Board, which has invested in property
and infrastructure projects.
India’s tech funding deals have slowed
to a trickle in 2016 amid worries over
the valuations of so-called unicorns
(start-ups valued at more than $1bn).
Snapdeal’s move appears to confirm a
different split in India’s technology
scene, however, with larger companies
such Flipkart and ride-sharing group
Ola able to raise funds easily, while
smaller start-ups are being forced to
cut costs by anxious investors.
The deal suggests that the valuation of
New Delhi-based Snapdeal has jumped
by about $2bn in six months. The com-
pany said it was valued at about $4.8bn
when it raised funds last August.
OTPP is Canada’s largest professional
pension plan, with $155bn in assets. The
group’s arrival in India is likely to ignite
speculation that other Canadian funds
might invest in start-ups, including
CPPIB or Caisse de dépôt et placement
du Québec, which has assets of $241bn.
Yesterday also saw Bangalore-based
retail group SnapBizz raise $7.2m in a
round led by Ratan Tata, chairman
emeritus of India’s Tata group.
Freeport tackles debt with $1bn mine stake sale
JAMES WILSON
MINING CORRESPONDENT
Freeport-McMoRan is selling a stake in
an Arizona mine for $1bn, in a sign of
the indebted US copper miner’s urgent
need to shore up its balance sheet to
respond to the commodities price rout.
Freeport’s sale of a 13 per cent stake in
the Morenci mine to Japanese copper
producer Sumitomo follows the miner’s
pledge to step up the pace of debt reduc-
tion through asset sales.
Sumitomo already owns 15 per cent of
Morenci and the deal will cut Freeport’s
stake to 72 per cent. The mine produced
about 400,000 tonnes of copper last
year for Freeport and was the group’s
largest single source of the metal.
Freeport is the world’s largest listed
producer of copper but its problems
from the falling price of the metal have
been compounded by transactions four
years ago to step up its exposure to oil
and gas. The deals increased Freeport’s
debt, leaving it more exposed as the
commodity cycle has turned.
The mining industry is being most
affected by the slowdown in China,
which became by far the largest source
of commodities demand over the past
decade. The slowdown has hit demand
for minerals used in construction and
industry. In a statement yesterday,
Richard Adkerson, Freeport’s chief
executive, said the deal with Sumitomo
“represents an important initial step
toward our objective to accelerate debt
reduction and restore our balance sheet,
while retaining a portfolio of high-qual-
ity assets and resources”.
Indebted miners are trying to sell
assets but are reluctant to entertain
offers for their best mines unless their
circumstances become desperate.
Larger miners are hunting for copper
acquisitions, which will boost growth
once the cycle recovers, but will con-
sider only those that are low-cost and in
safe jurisdictions. Shares in Freeport
have rebounded from lows a month ago.
Tuesday 16 February 2016 ★ FINANCIAL TIMES 15

COMPANIES

Airlines. Code-sharing

Etihad’s alliance-building effort struggles to stay aloft

Arrangement with Air Berlin
is the biggest problem for
the fast-growing Gulf carrier
TANYA POWLEY
TRANSPORT CORRESPONDENT
From the Seychelles to Serbia, Etihad
Airways has been busy forging its
own airline alliance by buying stakes
in regional carriers.
But the Abu Dhabi-based com-
pany’s bold plan to fill its aircraft
with its partners’ passengers is com-
ing under threat in Europe and the
US, where rivals complain of unfair
competition from fast-growing Gulf
carriers.
The issue has become acute as Eti-
had, Emirates Airlines and Qatar Air-
ways have during the past decade
moved from being fringe performers
to the most disruptive force in the
industry, wooing travellers who previ-
ously flew with established airlines
based in Asia, Europe and the US.
Etihad, the youngest of the three
Gulf carriers, has pursued a different
strategy from its two larger peers,
buying stakes in airlines and using
code-sharing partnerships — in which
companies sell seats on each other’s
flights — to expand its network dra-
matically.
In the past four years it had spent
more than $1bn on stakes in seven
carriers, including Air Seychelles, Air
Serbia, India’s Jet Airways and Virgin
Australia.
But there are signs that this strat-
egy is running into significant prob-
lems. Some of the airlines that Etihad
has invested in have required further
cash injections and much manage-
ment time. Etihad’s first deal — the
purchase of a 29 per cent stake in
Air Berlin in 2011 — has developed
into a legal battle with Germany’s
transport ministry over a code-
sharing agreement.
“Their strategy of growth by acqui-
sition buys numbers in terms of vol-
umes,” says John Strickland, analyst
Permission to land: Etihad has spent more than $1bn on stakes in seven carriers, in part to expand its access to hubs in other countries — Sam Pollitt/Alamy
at JLS Consulting. “But the kind of
Gulf carriers companies they have been investing
Fleet size in means they have also been acquir-
ing complexity and the challenge of
how much management time that
Emirates takes.”
Last year Etihad had to navigate
management upheaval at Alitalia, in
which it had bought a 49 per cent
stake. The Italian flag carrier has not
reported a full-year profit since 2002.
Etihad However, Etihad’s biggest headache
has been Air Berlin, the lossmaking
German carrier. The investment,
which was hailed four years ago as
Emirates Qatar Etihad Emirates Qatar widening Etihad’s European network
Airline Airways Airways Airline Airways for less than the cost of a single long-
Source: companies
range jet, has spiralled and caused
more problems than the Gulf carrier
anticipated.
The German transport ministry last
year decided that the code-sharing
arrangement, which it had initially
approved, was not allowed under a
bilateral air services agreement with
the United Arab Emirates.
Code-sharing is important to both
companies. It provides Airberlin,
which is undergoing a turnround,
with important income, while Etihad
supposedly gains more access to Ger-
many’s biggest airports.
Etihad scored a victory in the legal
battle last month, when a German
appeals court supported its right to
sell tickets jointly on 26 of the 31
disputed code-share routes until
March 26.
However, industry insiders say the
dispute is far from over. The trans-
port ministry says it plans to “check
the grounds for the court’s ruling and
will then decide” how to proceed. “In
principle the German government
was and is open for talks with the
UAE to find viable solutions for air
traffic law issues.”
Any potential restriction to its
code-share with Air Berlin could have
a big impact for Etihad. According to
flight data from OAG, an aviation
consultancy, 92 per cent of Etihad’s
worldwide flights this week will be
operated on other airlines’ jets under
a code-sharing agreement — com-
pared with 74 per cent for Emirates
and 65 per cent for Qatar.
James Hogan, Etihad chief execu-
tive, has not been shy about pointing
the finger at Lufthansa, the German
flag carrier, as the cause of its recent
problems. “Etihad is confident that
regulators will recognise the benefits
its equity alliance strategy offers to
air travellers,” he has said.
“Unfortunately we have seen an
anti-competitive backlash from these
mega-carriers, as they try to protect
their dominant market positions
against this new or improved compe-
tition.
Additional reporting by Guy Chazan in
Berlin
16
HSBC returns
to everyday
challenges after
decision on HQ
Investor focus switches to profitability
amid indifferent reaction to domicile
MARTIN ARNOLD AND EMMA DUNKLEY
Investors in HSBC were unimpressed by
the widely predicted outcome of the
bank’s 10-month debate on whether to
move its headquarters out of the UK.
Shares in Britain’s biggest lender rose
just over 1 per cent — underperforming
the FTSE 100 index and the banking
sector.
Chief executive Stuart Gulliver said a
board meeting held in London on Sun-
day had focused on “a broad macroeco-
nomic and geopolitical type of discus-
sion” to decide the best home for the
bank in the decades to come.
Ian Gordon, banking analyst at
Investec, expressed his disappointment
in a note entitled “HSBC Holdings: Bot-
tle job?” that the bank passed up an
opportunity to move to a country with
lower tax and looser regulation. He
bemoaned “the considerable financial
benefits which may have accrued to
HSBC’s shareholders had it decided to
‘escape’”.
The board’s unanimous decision to
stay in the UK reflects both a recent
thawing of relations between the UK
government and the City, and a parallel
decline in the attractiveness of Hong
Kong as a potential home.
Mr Gulliver and Douglas Flint, chair-
man of HSBC, both stressed that short-
term concerns about the volatility of the
Chinese stock market and its economic
outlook had no impact on its review.
However, there has been clear alarm
Threat to move appears to have paid off handsomely
City life is more comfortable
for UK’s biggest bank since
moves by the chancellor
GEORGE PARKER — POLITICAL EDITOR
The millions of pounds HSBC spent on
advisers’ fees, while deciding whether to
move its headquarters from London
to Hong Kong, may prove to have been
money well spent even though the bank
is staying put.
Ever since HSBC raised the threat of
decamping from Canary Wharf, George
Osborne, the chancellor, has pulled out
the stops to make life in London more
comfortable for Britain’s biggest bank.
John McDonnell, shadow chancellor,
accused Mr Osborne of “taking his
orders from the banks” after he made
good on his promise to create a post-cri-
sis “new settlement” for the City.
The bank levy was reformed to help
lenders with big global balance sheets.
Contracts & Tenders
Legal Notices
about China’s interventionist approach.
In particular, the detention of three
Hong Kong booksellers has raised fears
among western bankers that China is
undermining the territory’s legal inde-
pendence.
But Mr Gulliver said this issue was not
pivotal in its decision. “Those are very
legitimate questions, but we have got
that risk anyway — wherever we have
the headquarters — because we have
such a large operation in Hong Kong,”
he said.
Some analysts had been concerned
that HSBC would face a backlash from
Hong Kong regulators, which had prom-
ised to welcome it with open arms.
Chirantan Barua, analyst at Bern-
stein, said: “For a bank that makes more
than 50 per cent of its profits in Asia —
most of it in Hong Kong — the decision to
stay back in the UK will raise investor
concerns around the sustainability of
the supernatural profits that the bank
enjoys in Hong Kong. That cosy rela-
tionship might end.”
HSBC was careful to avoid criticism of
its most profitable market, saying in its
statement yesterday that both London
and Hong Kong were “world-class finan-
cial centres with high-quality regulatory
regimes capable of hosting a global sys-
temically important bank such as
HSBC”.
The bank reaffirmed a commitment
to its “pivot to Asia” strategy, designed
to redeploy about a sixth of its $2.5tn
balance sheet capacity into faster grow-
HSBC, which paid $1.1bn in 2014, was
the biggest beneficiary. And laws to
hold senior bankers to account were
softened.
Martin Wheatley, seen as an exces-
sively harsh City policeman at the
Financial Conduct Authority, was
removed from his post after imposing a
series of heavy fines on banks.
And while HSBC’s lawyers and ana-
lysts considered a Hong Kong switch, Mr
Osborne travelled to China on a five-day
trip last year intended to confirm Lon-
don as Beijing’s international financial
partner of choice.
“They have looked carefully and dis-
passionately at the facts and confirmed
that the UK is the best place to base a
global business,” the Treasury said.
“It’s a vote of confidence in the gov-
ernment’s economic plan, and a boost to
our goal of making the UK a great place
to do more business with China and the
rest of Asia.”
Baroness Kramer, a member of the
cross-party parliamentary banking
★ FINANCIAL TIMES
COMPANIES
Staying put
HSBC’s Canary Wharf HQ in London will remain its base after a move to Hong Kong was rejected — Simon Dawson/Bloomberg
HSBC
Employees, 2014* (000)
UK
India
Hong Kong
Mainland
China
Brazil
Mexico
US
France
Other
Sources: Thomson Reuters Datastream; company * Includes full and part time workers ** Excluding Intra-HSBC
Banks. Relocation debate
commission, said HSBC was only the
“most obvious face” of intense lobbying
of the chancellor by the banks in recent
months.
“They have been pressing the govern-
ment to row back the regulatory stand-
ards put in place to protect us from
another crash,” the Liberal Democrat
peer said.
HSBC denies lobbying Mr Osborne,
and the chancellor’s allies insist that
the government is putting in place some
of the most stringent rules in the world
to guard against a repeat of the 2008
crash.
But HSBC’s threat to swap London’s
Docklands for Hong Kong concentrated
minds at the Treasury and formed part
of the backdrop of Mr Osborne’s concili-
atory speech at Mansion House last
June.
John Mann, a Labour member of the
Commons Treasury committee, said Mr
Osborne had not in fact believed that
HSBC would leave London but had used
the threat “as a convenient excuse” to
Financials
Amundi chief dismisses bank sell-off as ‘irrational’
CHRIS NEWLANDS
The chief executive of Europe’s largest
asset manager has described the
sell-off in banking stocks as “com-
pletely irrational” — and dismissed
fears that sliding share prices could
trigger a repeat of the Lehman Broth-
ers collapse.
Yves Perrier, chief executive of Amundi,
which last week reported a 12 per cent
rise in assets under management to
€985bn, said investors were ignoring
the fact that the European Central Bank
had flooded the market with liquidity
since the financial crisis.
“Lehman collapsed in 2008 due to
liquidity problems,” he said. “Things
are very different now. I’d like to know
what it is investors are seeing.”
Anyone predicting the fall of one of
the big banks was “fundamentally
incorrect”, he added.
Shares in European and US banks
have been pummelled in recent weeks,
with analysts putting the blame on low
interest rates, slowing economic growth
Total assets, 2014** ($tn)
Latin America
250
North America
200
Middle East
and North
Africa
150
100
Asia
50
Europe
0 0
ease up on the banks. “He’s worried
about RBS and Lloyds,” said Mr Mann,
referring to the two banks in which the
Treasury still holds big stakes. “He’s
worried about the value of the shares
and maximising returns.”
Meanwhile HSBC’s decision to keep
its headquarters in London for the fore-
seeable future has become embroiled in
the debate about whether the City could
continue to thrive outside the EU.
Opponents of Brexit seized on com-
ments by Stuart Gulliver, the bank’s
chief executive, that up to 1,000 invest-
ment banking jobs could be shifted
from London to Paris if the UK voted to
leave the EU.
Asked about the possible switch to
Paris, David Cameron’s spokeswoman
said that the prime minister had spoken
“many times about the choices and
issues the British people will have to
weigh up”.
But Eurosceptics focused on the fact
that HSBC had taken a “generational
view” about the location of its head-
in China and elsewhere, and the risk of
higher loan defaults.
Deutsche Bank has dominated the
headlines after analysts speculated
about its ability to honour interest pay-
ments on its junior debt, forcing it to
release an unscheduled statement say-
ing it could meet obligations.
The German lender’s shares fell 13 per
Yves Perrier: has seen similar ‘pressure on valuations four times’ — Magali Delporte
Tuesday 16 February 2016
Instant Insight: Changing China
Heightened risks and dwindling
opportunities in China meant
caution won the day when HSBC
looked at a possible move,
writes Henny Sender.
ft.com/instant-insight
Video: Why HSBC stayed put
The FT’s banking editor Martin
Arnold explains why HSBC has
decided to remain in London
and what happens next.
ft.com/video
ing markets in Asia and the Pearl River
Delta region of China in particular.
Mr Flint said the lack of a tax treaty
between the US and Hong Kong went
against New York as a potential location,
because Asian investors that make up
about a third of its shareholder base
would have faced a withholding tax on
dividends.
The chairman said an “important”
factor in swinging the decision in Lon-
don’s favour was last year’s announce-
ment by the Treasury that it would rec-
alibrate the bank levy, which penalises
banks with big balance sheets and hit
HSBC hardest. Instead, the chancellor
introduced a supertax on UK bank prof-
its that hits smaller “challenger” banks.
The bank levy is forecast to cost HSBC
$1.5bn in 2015, up from about $1.1bn the
previous year. But the tax changes
announced last year by the government
would boost HSBC’s net profits by 4-6
per cent by 2021, according to analysts
at Citigroup.
Last year Mr Gulliver’s disenchant-
ment with the UK deepened after he was
called before a parliamentary commit-
tee to be grilled over his personal tax
Share price and index (rebased) affairs as part of hearings into alleged
tax avoidance by clients of the bank’s
160 Swiss arm. But the shift in the political
2.5
HSBC climate since a Conservative party vic-
tory in last year’s election has helped to
2.0 brighten his view of Britain.
140
One benefit of the domicile review has
been to deflect some attention from the
bank’s performance. HSBC shares have
1.5
120 fallen more than a quarter in the past
year and the bank has abandoned cost-
1.0 cutting and profitability targets.
Mr Gulliver defended its performance
100 by arguing its shares had fallen less than
0.5 most rivals so far this year. Although the
domicile issue is now out of the way,
FTSE World Banks
investors are feeling nervous about the
80 banking sector and he will face plenty of
other questions when HSBC reports
2012 13 14 15 16
annual results next week.
See Lex
quarters months before an expected for them; indeed it might well be
Brexit referendum on June 23. a net plus.”
“What is striking is that they have Lord Lawson chairs the Vote Leave
made their decision only a few months campaign, which noted that in April
ahead of the EU referendum, which 2015 Douglas Flint, HSBC’s chairman,
might well lead to the UK leaving the had cited the EU referendum as one of
EU,” said Lord Lawson, former Tory the reasons that his bank was consider-
chancellor. ing leaving Britain.
“Clearly — and absolutely rightly in Mr Flint said at the time that “eco-
my opinion — Brexit holds no terrors nomic uncertainty stands out, that of
continuing UK membership of the EU”.
Vote Leave said it had become clear
that this was “an attempt to scare people
into backing EU membership”.
Given economic instability in China
and political uncertainty in Hong Kong,
many politicians question whether
HSBC would have moved east even had
Mr Osborne not been inclined to be
helpful.
But, as Treasury officials say, that is to
$1.1bn £30m-£40m try to prove “the counterfactual”. The
How much the Amount HSBC same would apply to the question of
bank levy, now paid for advice whether HSBC spent wisely when hand-
reformed, cost over a move that ing over £30m-£40m for advice on a
HSBC in 2014 did not happen move that never happened.
cent over two days last week, before very irrational,” Mr Perrier said. “I
rallying, but are still nearly 60 per have been in banking since 1987 and
cent down from their 2015 high of have seen this type of pressure on valua-
€33.42 last April. tions four times before, and I can see
Deutsche Bank is launching a $5.4bn that the view many people have of the
buyback of its bonds in an attempt to market right now is wrong.”
reassure markets of its financial Tidjane Thiam, chief executive of
strength. Credit Suisse, which also suffered
“The sell-off [of banking stocks] is significant share-price falls at the start
of last week, said that the bank was
“stronger than ever” and suggested the
dumping of bank shares did not make
sense.
He told the Financial Times: “The
banking system in general is much
stronger than in 2008-09 [but] there
are a lot of memories of that period.
Some of the scenes we are seeing today
are not justified . . . Banks are smaller,
they are deleveraged, they are less risky,
they are better capitalised.”
Amundi’s share price rose slightly last
Friday after publication of its results —
the first since it became a listed com-
pany. Revenues at the Paris-based fund
house were €1.6bn, an 8 per cent
increase from 2014.
Tuesday 16 February 2016
Property
Vonovia deputy
chairman quits
as hostile bid fails
Contract ‘annulled by
mutual consent’ after early
completion of Gagfah deal
NATHALIE THOMAS — LONDON
JAMES SHOTTER — FRANKFURT
Germany’s largest listed property
group, Vonovia, which last week failed
in a hostile €14bn takeover of its rival
Deutsche Wohnen, has announced the
departure of the deputy chairman of
its management board, Thomas
Zinnöcker.
Vonovia — which was formerly owned
by Guy Hands’ Terra Firma buyout
group — said Mr Zinnöcker’s temporary
A provisional count found
just 30.4% of Deutsche
Wohnen’s shares had been
tendered by the deadline
role overseeing the integration of the
group’s €3.9bn swoop on Gagfah,
another property landlord, in 2014 had
come to an end, and the integration had
been completed early.
“Thomas Zinnöcker’s exemplary
commitment enabled Vonovia to
successfully complete the integration
of Gagfah ahead of time,” said Wulf
Bernotat, chairman of the Vonovia
supervisory board, in a statement
yesterday.
“As a result of his efforts, his contract
has been annulled by mutual consent.”
Bochum-based Vonovia said last
week it had failed to secure the 50 per
cent-plus Deutsche Wohnen shares it
needed to gain control of the taget,
which is its nearest rival.
In October Vonovia had said it would
offer shareholders in Deutsche Wohnen
seven Vonovia shares and €83.14 in cash
for every 11 shares held.
A combination of the two groups
would have created a landlord with a
portfolio of more than 500,000 homes,
and capped two years of increasingly
frenetic dealmaking in the German real
estate sector.
However, Deutsche Wohnen’s man-
agement, led by chief executive Michael
Zahn, vehemently opposed the cash-
and-share agreement, which he said
would “destroy value.”
The €84m in synergies that Vonovia
had planned to reap in the two years
following the proposed tie-up had
been “not remotely achievable”, Mr
Zahn added.
Deutsche Wohnen’s investors had also
been sceptical. Some shareholders
argued that the price offered by Vonovia
was not enough, while others were wary
of the amount of debt needed to finance
the move.
Another contingent of investors
thought the sector had already under-
gone enough consolidation.
In January, in an effort to salvage the
takeover, Vonovia cut the level of
backing it needed for the agreement
to go through from 57 per cent to
50 per cent of Deutsche Wohnen share-
holders.
However, last week Vonovia was
forced to admit defeat, after a provi-
sional count found that just 30.4 per
cent of Deutsche Wohnen’s shares had
been tendered by the deadline of mid-
night on Tuesday — including shares
that Vonovia itself had bought and oth-
ers it expected to receive from converti-
ble bondholders.
Shares in Vonovia closed 2.38 per cent
higher at €27.12 yesterday, while shares
in Deutsche Wohnen closed up 3.41 per
cent at €24.28 in Frankfurt.
★ FINANCIAL TIMES
COMPANIES
Electrolux’s chief and CFO quit after the collapsed $3.3bn move on GE’s appliances unit — Bartek Sadowski/Bloomberg
Soap opera The whirl of change continues to spin
at the top of the Swedish washing
machine maker.
Electrolux Electrolux plans a shake-up of its
board, shortly after its chief executive
puts board and chief financial officer resigned
after the collapsed $3.3bn proposed
dealtobuyGeneral Electric’s appliances
through spin business, an acquisition that would
have been the largest in its history.
The Swedish group is proposing to
elect as its new president and chief
executive Jonas Samuelson, who
succeeded Keith McLoughlin at the
start of February.
Mr McLoughlin had been
facing rumours of discontent and
suffered some embarrassment
when the GE agreement collapsed
at the end of 2015. The proposal would
have given Electrolux about 34 per
cent of the US market, according to
data from IBISWorld, a consultancy
— instead, it must pay GE a
termination fee of $175m.
GE pulled out of the agreement
after objections by US regulators,
with the Department of Justice
arguing that the transaction would
have reduced competition in the
supply of kitchen appliances.
The board is also looking to elect
Ulla Litzén, who previously served
as president of W Capital
Management, and David Porter, who
occupies a senior management role
at Microsoft.
Electrolux shares rose 4.9 per cent
yesterday to close at SKr189.3. Joel
Lewin
17
Mining
Anglo loses its
investment
grade rating
JAMES WILSON
MINING CORRESPONDENT
Anglo American’s credit rating was
downgraded to junk status yesterday
by Moody’s, which said that the diversi-
fied miner faced higher risks from a
sweeping commodities downturn.
Anglo is the first large global diversified
miner to lose its investment grade credit
rating amid the commodities rout.
Moody’s decision was published
ahead of Anglo’s annual results today,
when the miner is expected to report a
sharp reduction in earnings and outline
a wide-ranging asset sale plan.
There was “high execution risk” asso-
ciated with Anglo’s restructuring plan,
said Moody’s. “Challenging market con-
ditions are likely to slow the pace of the
portfolio transformation,” it added.
Miners have been squeezed by a
downturn in commodity prices that has
sent some natural resources to levels
last seen before the 2008 financial crisis.
The slowdown in commodities “was
not a normal cyclical downturn, but a
fundamental shift in the operating envi-
ronment for the global mining sector”,
said Moody’s. “Price risk remains to the
downside, given global economic uncer-
tainties and slowing growth in China.”
Anglo’s was one of a swath of natural
resources companies’ ratings that
Moody’s put on review last month.
Anglo said it had about $15bn of
liquidity at the end of 2015 and bond
maturities this year of $1.6bn.
Moody’s estimated that at the end of
2015 Anglo’s adjusted gross debt repre-
sented 4.2 times its annual earnings
before interest, tax, depreciation and
amortisation. “The rating agency does
not expect Anglo American to generate
sufficient operating cash flows to deliver
substantial organic debt reduction in
the next two years,” said Moody’s.
Anglo responded: “Anglo American is
taking the necessary steps to further
strengthen its balance sheet with the
objective of returning to a solid invest-
ment grade credit rating and will set out
the details of these actions [today].”
18 ★ FINANCIAL TIMES Tuesday 16 February 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 $

-2.54%
No change No change No change No change
1.95% 1.66% 2.00% 2.04% 2.88% 7.16% 3.27% 1.30% 2.30%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jan 13 - Feb 12 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
9,545.27 17,240.95
1,890.28 1,864.78 12,336.03 12,381.24 5,804.10 5,824.28 9,206.84 16,022.58 1,878.87 1,862.20

Day 1.95% Month -3.06% Year -9.85% Day 2.43% Month 0.06% Year -18.70% Day 2.04% Month 0.46% Year -15.17% Day 2.67% Month 2.53% Year NaN% Day 7.16% Month -7.07% Year -10.56% Day 1.47% Month -1.99% Year -4.87%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
4,526.06 43,035.24 1,297.10 8,543.60 19,711.76 2,696.50
41,352.75 1,267.57
8,179.20 18,918.14 2,607.90
4,337.51
Day 1.66% Month -6.48% Year -9.66% Day 1.46% Month 5.41% Year -0.03% Day 2.88% Month -2.21% Year -15.60% Day 3.26% Month -6.92% Year -23.84% Day 3.27% Month -4.54% Year -23.35% Day 2.68% Month -1.39% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
40,194.74 19,195.94 24,772.97
16,151.41 39,500.11 4,210.16 2,900.97
15,973.84 4,115.25 23,554.12
17,041.82 2,746.20

Day 2.00% Month -2.59% Year -10.57% Day 0.97% Month 4.22% Year -20.62% Day 3.01% Month -4.58% Year -13.53% Day 3.19% Month -11.22% Year -19.63% Day -0.63% Month -8.69% Year -14.28% Day 2.47% Month -4.92% Year -19.04%

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 11456.90 11276.39 Cyprus CSE M&P Gen 63.85 64.71 Italy FTSE Italia All-Share 18574.00 17999.34 Philippines Manila Comp 6692.58 6654.45 Taiwan Weighted Pr 8066.51 8063.00 Cross-Border DJ Global Titans ($) 215.56 214.56
Australia All Ordinaries 4893.40 4816.60 Czech Republic
PX 875.81 845.92 FTSE Italia Mid Cap 29276.86 28357.84 Poland Wig 44267.78 43849.40 Thailand Bangkok SET 1288.40 1276.49 Euro Stoxx 50 (Eur) 2835.83 2756.16
S&P/ASX 200 4843.50 4765.30 Denmark OMXC Copenahgen 20 904.60 860.47 FTSE MIB 17041.82 16514.87 Portugal PSI 20 4640.17 4534.63 Turkey BIST 100 70937.40 70941.65 Euronext 100 ID 813.66 789.73
S&P/ASX 200 Res 2323.90 2237.30 Egypt EGX 30 5753.74 5813.72 Japan 2nd Section 3997.21 3880.81 PSI General 2237.90 2192.25 UAE Abu Dhabi General Index 4107.42 4075.23 FTSE 4Good Global ($) 4887.97 4842.12
Austria ATX 2099.27 2033.48 Estonia OMX Tallinn 888.82 882.01 Nikkei 225 16022.58 14952.61 Romania BET Index 6134.76 6064.63 UK FT 30 2621.30 2562.10 FTSE All World 238.78 235.71
Belgium BEL 20 3298.59 3203.66 Finland OMX Helsinki General 7563.09 7369.63 S&P Topix 150 1063.78 981.53 Russia Micex Index 1738.54 1726.04 FTSE 100 5824.28 5707.60 FTSE E300 1267.57 1232.09
BEL Mid 5299.55 5141.77 France CAC 40 4115.25 3995.06 Topix 1292.23 1196.28 RTX 707.24 689.90 FTSE 4Good UK 5266.07 5156.78 FTSE Eurotop 100 2508.27 2441.84
Brazil Bovespa 40194.74 39808.05 SBF 120 3250.81 3154.51 Jordan Amman SE 2127.25 2121.19 Saudi-Arabia TADAWUL All Share Index 5691.25 5557.92 FTSE All Share 3192.10 3129.63 FTSE Global 100 ($) 1191.09 1182.27
Canada S&P/TSX 60 729.46 710.42 Germany M-DAX 18517.20 17924.03 Kenya NSE 20 3794.41 3790.54 Singapore FTSE Straits Times 2607.90 2539.95 FTSE techMARK 100 3606.27 3521.65 FTSE Gold Min ($) 1240.37 1213.05
S&P/TSX Comp 12381.24 12087.37 TecDAX 1562.08 1512.23 Kuwait KSX Market Index 513.91 513.11 Slovakia SAX 305.47 303.74 USA DJ Composite 5652.48 5561.05 FTSE Latibex Top (Eur) 1898.90 1874.70
S&P/TSX Met & Min 291.68 263.27 XETRA Dax 9206.84 8967.51 Latvia OMX Riga 613.22 616.39 Slovenia SBI TOP 667.60 671.03 DJ Industrial 15973.84 15660.18 FTSE Multinationals ($) 1329.78 1313.15
Chile IGPA Gen 18092.69 18031.60 Greece Athens Gen 487.92 454.29 Lithuania OMX Vilnius 482.26 482.15 South Africa FTSE/JSE All Share 49851.95 48589.69 DJ Transport 7048.69 6883.49 FTSE World ($) 423.98 418.83
China FTSE A200 7557.09 7611.66 FTSE/ASE 20 131.55 119.41 Luxembourg LuxX 1228.87 1187.17 FTSE/JSE Res 20 26851.98 26109.74 DJ Utilities 610.87 614.03 FTSEurofirst 100 (Eur) 3555.53 3460.91
FTSE B35 9805.58 9940.19 Hong Kong Hang Seng 18918.14 18319.58 Malaysia FTSE Bursa KLCI 1649.96 1643.74 FTSE/JSE Top 40 44379.10 43119.66 Nasdaq 100 4019.19 3962.22 FTSEurofirst 80 (Eur) 3830.65 3723.26
Shanghai A 2873.57 2891.62 HS China Enterprise 7863.84 7505.37 Mexico IPC 43035.24 42416.44 South Korea Kospi 1862.20 1835.28 Nasdaq Cmp 4337.51 4266.84 MSCI ACWI Fr ($) 357.07 353.35
Shanghai B 350.82 354.33 HSCC Red Chip 3376.82 3251.85 Morocco MASI 9057.70 9072.34 Kospi 200 228.40 224.98 NYSE Comp 9229.68 9029.88 MSCI All World ($) 1486.45 1468.90
Shanghai Comp 2746.20 2763.49 Hungary Bux 23065.93 22705.29 Netherlands AEX 403.96 391.86 Spain IBEX 35 8179.20 7920.80 S&P 500 1864.78 1829.08 MSCI Europe (Eur) 1232.92 1201.82
Shenzhen A 1829.84 1830.40 India BSE Sensex 23554.12 22986.12 AEX All Share 618.14 600.25 Sri Lanka CSE All Share 6266.17 6283.00 Wilshire 5000 19026.84 18656.05 MSCI Pacific ($) 1942.54 2031.74
Shenzhen B 1120.64 1141.30 S&P CNX 500 5999.05 5833.40 New Zealand NZX 50 6034.28 5933.96 Sweden OMX Stockholm 30 1330.14 1286.67 Venezuela IBC 14704.83 14594.52 S&P Euro (Eur) 1275.83 1239.00
Colombia COLCAP 1209.03 1198.51 Indonesia Jakarta Comp 4740.73 4714.39 Nigeria SE All Share 24689.69 24664.89 OMX Stockholm AS 460.41 446.88 Vietnam VNI 543.79 544.75 S&P Europe 350 (Eur) 1299.49 1262.83
Croatia CROBEX 1592.84 1595.35 Ireland ISEQ Overall 5954.69 5793.41 Norway Oslo All Share 580.87 563.62 Switzerland SMI Index 7848.33 7656.60 S&P Global 1200 ($) 1665.01 1646.79
Israel Tel Aviv 100 11.98 11.81 Pakistan KSE 100 31928.15 31928.15 Stoxx 50 (Eur) 2723.48 2651.78
(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 Feb 15 %Chg %Chg Feb 15 %Chg %Chg Feb 15 %Chg %Chg Feb 15 %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 37.9 93.99 0.29 Bg 546.3 1062.00 42.00 Unicredit 515.8 3.29 0.00 Toyota Motor 1120.0 6256.00 546.00 Rolls-royce Holdings 615.00 19.4 6.9 Domino's Pizza 976.00 14.0 -7.2 Imagination 152.00 16.7 12.9 Industrial Metals 701.23 11.8 -2.0
Facebook Class A 36.9 102.01 0.10 Al Noor Hospitals 265.9 892.00 0.50 Total 441.6 38.63 0.63 Mitsubishi Ufj Fin,. 806.1 484.80 38.60 Dcc 5385.00 13.1 -4.5 Smith (ds) 371.40 12.4 -6.2 Lonmin 84.00 13.5 0.6 Forestry & Paper 13518.05 10.2 -6.1
Bank Of America 29.3 11.95 0.79 Royal Dutch Shell 140.7 1540.50 8.21 Santander 421.5 3.61 0.13 Sumitomo Mitsui Fin,. 674.0 3156.00 296.50 Provident Fin 3107.00 12.8 -7.7 Dunelm 920.00 12.1 -2.4 Johnston Press 44.25 10.6 -12.2 Aerospace & Defense 4068.04 8.7 -1.7
Amazon.com 27.3 507.08 3.26 Glaxosmithkline 136.0 1411.00 29.76 Intesa Sanpaolo 405.6 2.40 0.00 Mizuho Fin,. 488.4 168.30 13.10 Mondi 1255.00 10.0 -6.2 Evraz 71.20 10.9 -2.8 Premier Oil 33.75 9.3 -30.2 Pharmaceuticals & Biotech. 12038.96 5.1 -6.5
Jpmorgan Chase & Co. 21.3 57.49 4.42 Vodafone 128.4 209.45 3.95 Nestle N 326.1 65.46 0.00 Softbank . 439.4 4400.00 236.00 Wolseley 3505.00 8.8 -4.8 Ip 173.80 10.2 -14.0 Petra Diamonds 89.75 9.1 2.6 General Industrials 4203.40 4.8 -4.4
Microsoft 17.3 50.50 0.81 Imperial Brands 125.4 3632.50 69.50 Bbva 306.4 5.66 0.16 Fast Retailing Co., 337.7 33220.00 830.00 Shire 3797.00 8.6 -19.1 Man 157.70 10.1 -9.6 Tribal 25.25 7.4 5.2 Mobile Telecommunications 4801.69 4.5 -5.9
Netflix 16.7 87.40 1.05 Bp 121.5 332.80 7.10 Ing Groep 303.0 10.33 0.56 Sony 326.6 2447.00 190.00 Worldpay 299.00 8.5 -2.7 Informa 644.50 10.0 5.5 Lamprell 87.00 7.4 -12.6 Household Goods 15790.73 4.3 -4.1
Alphabet Class A Common Stock 16.4 706.89 0.53 Royal Dutch Shell 120.4 1542.00 19.50 Novartis N 301.8 64.55 0.00 Fanuc 326.6 16545.00 1135.00 Old Mutual 165.80 7.5 -6.2 Bgeo 1726.00 8.2 -9.8 Hochschild Mining 63.25 7.2 31.6 Industrial Engineering 6633.26 4.3 -7.4
General Electric 16.3 28.26 0.81 Reckitt Benckiser 114.6 6371.00 277.46 Daimler Ag Na O.n. 295.3 60.91 0.00 Japan Tobacco . 313.7 4532.00 407.00 Carnival 3149.00 7.4 -17.8 Ocado 259.90 7.7 -14.8 Skyepharma 370.00 6.7 -6.4 Health Care Equip.& Services 6746.57 4.2 -6.5
Alphabet Class C Capital Stock 14.6 682.40 -0.71 Hsbc Holdings 108.5 446.40 6.00 Roche Gs 286.3 222.42 0.00 Nippon Telegraph And Telephone 285.4 4910.00 304.00 Wpp 1432.00 6.9 -8.5 Qinetiq 227.80 7.5 -15.9 Utv Media 179.75 6.4 2.7 General Retailers 2809.84 4.2 -6.4
Royal Bank Of Scotland 246.30 6.8 -18.4 Mitchells & Butlers 274.50 7.2 -20.5 Int Biotechnology Trust 400.00 5.3 -26.1 Construction & Materials 4529.62 4.2 -12.4
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
Next 6860.00 6.7 -5.9 Meggitt 380.60 7.2 1.6 Menzies(john) 431.50 5.2 4.0 Media 6867.17 3.9 -7.4
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Wynn Resorts Ltd 69.14 9.45 15.83 Enterprise Inns 80.00 5.75 7.74 Altice 12.38 1.01 8.93 Ms&ad Insurance Holdings,. 2859.00 324.00 12.78 Hikma Pharmaceuticals 1872.00 -9.2 -18.7 Al Noor Hospitals 892.00 -23.3 -19.6 Cambian 66.00 -44.9 -52.8 Technology Hardware & Equip. 1101.54 -3.0 -13.6
Freeport-mcmoran 5.53 0.64 13.09 Tullow Oil 178.60 12.70 7.66 Altice B 12.58 1.00 8.68 T&d Holdings, . 1152.00 130.00 12.72 Tui Ag 1027.00 -6.4 -15.1 Interserve 362.40 -15.6 -30.4 Chemring 117.50 -25.4 -38.0 Real Estate & Investment Servic 2604.11 -1.1 -15.1
The Carlyle L.p. Common Units 12.89 1.19 10.17 Ncc 280.80 19.70 7.55 Zodiac Aerospace 19.31 1.41 7.88 Thb Dai-ichi Life Insurance , 1340.50 148.00 12.41 Antofagasta 442.80 -4.2 -7.4 Supergroup 1362.00 -13.1 -27.1 Renold 37.00 -17.3 -34.8 Equity Investment Instruments 6795.32 -0.4 -9.0
Southwestern Energy 8.93 0.78 9.57 Genus 1447.00 97.00 7.19 Renault 73.57 5.24 7.67 Mitsubishi Chemical Holdings 610.30 67.00 12.33 Arm Holdings 893.00 -2.9 -14.1 Telecom Plus 829.00 -12.0 -22.6 Punch Taverns 98.00 -13.7 -23.4 Fixed Line Telecommunication 5094.36 -0.1 -4.2
Qorvo 37.55 3.02 8.75 Atkins (ws) 1238.00 80.00 6.91 Peugeot 12.77 0.83 6.95 Hitachi Construction Machinery Co., 1669.00 183.00 12.31 Bhp Billiton 693.60 -2.0 -8.7 Just Retirement 120.50 -11.3 -27.4 Speedy Hire 33.25 -13.1 -20.4 Mining 7536.17 0.0 2.8
Barclays 160.75 -1.9 -26.6 Clarkson 1790.00 -10.4 -20.5 Tt Electronics 131.75 -12.9 -15.8 Electricity 7914.05 0.0 -10.1
Downs Downs Downs Downs
Reckitt Benckiser 6371.00 -1.9 -6.4 Countrywide 321.80 -9.9 -17.8 Nanoco 38.25 -12.6 -33.5 Software & Computer Services 1510.54 0.3 -8.7
Chesapeake Energy 1.59 -0.19 -10.67 Acacia Mining 225.10 -19.60 -8.01 Grifols Sa 14.99 -14.40 -48.99 Hokuetsu Kishu Paper Co., 628.00 -29.00 -4.41
Glencore 101.20 -1.6 11.8 Shawbrook 259.40 -7.8 -26.1 Baillie Gifford Shin Nippon 408.00 -12.5 -17.1 Oil & Gas Producers 5648.12 0.3 0.2
Activision Blizzard 28.12 -2.40 -7.86 Fresnillo 873.50 -27.66 -3.08 Edf 10.30 -0.13 -1.25 Aeon Co., 1393.00 -47.00 -3.26
Sage 566.50 -1.4 -6.1 Vectura 165.00 -7.6 -6.3 Partnership Assurance 98.00 -11.3 -28.6 Gas Water & Multiutilities 5829.32 0.4 -1.9
The Mosaic 22.91 -1.84 -7.43 Randgold Resources Ld 6030.00 -147.67 -2.40 Atlantia 22.60 0.00 0.00 Nippon Paper Industries Co Ltd 1816.00 -60.00 -3.20
Bp 332.80 -1.3 -4.1 Ophir Energy 77.85 -7.3 -20.9 Centaur Media 58.25 -10.4 -17.7 Real Estate Investment Trusts 2901.31 0.7 -10.8
Dentsply Int 54.73 -1.78 -3.15 Allied Minds 297.30 -7.10 -2.33 Cnh Industrial 5.59 0.00 0.00 Nisshin Steel Holdings Co., 1243.00 -13.00 -1.04
Ashtead 821.50 -0.8 -26.6 Nostrum Oil & Gas 267.30 -7.1 -34.0 Low & Bonar 56.25 -10.4 -15.3 Food Producers 8349.76 0.9 -5.7
L Brands 81.87 -2.13 -2.54 Assura 53.00 -1.15 -2.12 Enel Green Power 1.71 0.00 0.00 Furukawa Electric Co., 246.00 0.00 0.00
Aberdeen Asset Management 228.80 -0.6 -20.9 Dfs Furniture 288.00 -7.1 -13.4 Baillie Gifford Japan Trust 405.00 -10.0 -17.1 Beverages 15246.36 1.1 -1.0
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.7838 - 16.6229 - 21.3728 - Indonesia Indonesian Rupiah 13490.0000 - 15168.2232 - 19502.4154 - Poland Polish Zloty 3.9217 - 4.4095 - 5.6695 - ..Three Month 0.6917 0.0000 0.7776 0.0000 - -
Australia Australian Dollar 1.4121 - 1.5878 - 2.0415 - Israel Israeli Shekel 3.8910 - 4.3751 - 5.6252 - Romania Romanian Leu 3.9802 - 4.4753 - 5.7541 - ..One Year 0.6921 - 0.7770 0.0000 - -
Bahrain Bahrainin Dinar 0.3772 - 0.4241 - 0.5452 - Japan Japanese Yen 112.7500 - 126.7766 - 163.0018 - Russia Russian Ruble 78.7675 - 88.5665 - 113.8736 - United States United States Dollar - - 1.1244 - 1.4457 -
Bolivia Bolivian Boliviano 6.8900 - 7.7471 - 9.9608 - ..One Month 112.7499 -0.0002 126.7766 0.0000 163.0017 -0.0002 Saudi Arabia Saudi Riyal 3.7505 - 4.2171 - 5.4221 - ..One Month - - 1.1243 -0.3213 1.4457 0.0000
Brazil Brazilian Real 3.9789 - 4.4739 - 5.7523 - ..Three Month 112.7497 -0.0006 126.7765 0.0000 163.0014 -0.0008 Singapore Singapore Dollar 1.3976 - 1.5714 - 2.0204 - ..Three Month - - 1.1241 -0.3213 1.4457 0.0000
Canada Canadian Dollar 1.3902 - 1.5631 - 2.0097 - ..One Year 112.7484 -0.0031 126.7764 -0.0003 163.0017 -0.0020 South Africa South African Rand 15.8628 - 17.8361 - 22.9327 - ..One Year - - 1.1230 -0.3213 1.4460 -
Chile Chilean Peso 708.7700 - 796.9439 - 1024.6635 - Kenya Kenyan Shilling 101.8500 - 114.5206 - 147.2438 - South Korea South Korean Won 1211.5500 - 1362.2718 - 1751.5288 - Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0200 7.0894 0.0225 9.1151 0.0289
China Chinese Yuan 6.5695 - 7.3868 - 9.4975 - Kuwait Kuwaiti Dinar 0.2985 - 0.3356 - 0.4315 - Sweden Swedish Krona 8.4360 - 9.4855 - 12.1959 - Vietnam Vietnamese Dong 22317.0000 - 25093.3473 - 32263.5805 -
Colombia Colombian Peso 3409.5000 - 3833.6561 - 4929.0901 - Malaysia Malaysian Ringgit 4.1700 - 4.6888 - 6.0285 - Switzerland Swiss Franc 0.9769 - 1.0984 - 1.4122 - European Union Euro 0.8894 - - - 1.2857 -
Costa Rica Costa Rican Colon 535.2400 - 601.8260 - 773.7925 - Mexico Mexican Peson 19.0909 - 21.4659 - 27.5996 - Taiwan New Taiwan Dollar 33.3025 - 37.4455 - 48.1452 - ..One Month 0.8893 0.0000 - - 1.2857 0.0000
Czech Republic Czech Koruna 24.0551 - 27.0476 - 34.7762 - New Zealand New Zealand Dollar 1.5090 - 1.6967 - 2.1815 - Thailand Thai Baht 35.5600 - 39.9838 - 51.4088 - ..Three Month 0.8891 0.0000 - - 1.2856 0.0000
Denmark Danish Krone 6.6384 - 7.4642 - 9.5971 - Nigeria Nigerian Naira 198.9600 - 223.7114 - 287.6350 - Tunisia Tunisian Dinar 2.0081 - 2.2579 - 2.9030 - ..One Year 0.8879 - - - 1.2849 0.0000
Egypt Egyptian Pound 7.8287 0.0955 8.8026 0.1073 11.3178 0.1380 Norway Norwegian Krone 8.6239 - 9.6967 - 12.4675 - Turkey Turkish Lira 2.9300 - 3.2945 - 4.2359 -
Hong Kong Hong Kong Dollar 7.7893 - 8.7583 - 11.2609 - Pakistan Pakistani Rupee 104.4850 - 117.4834 - 151.0532 - United Arab Emirates UAE Dirham 3.6731 - 4.1300 - 5.3101 -
Hungary Hungarian Forint 276.0050 - 310.3411 - 399.0183 - Peru Peruvian Nuevo Sol 3.5094 - 3.9460 - 5.0735 - United Kingdom Pound Sterling 0.6917 - 0.7778 - - -
India Indian Rupee 68.2050 - 76.6900 - 98.6035 - Philippines Philippine Peso 47.5000 - 53.4092 - 68.6704 - ..One Month 0.6917 0.0000 0.7777 0.0000 - -
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 Feb 15 Feb 12 Feb 11 Feb 10 Feb 09 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 2688.50 2621.30 2562.10 2634.20 2608.60 0.00 2875.90 2547.10 Food & Drug Retailer 6.34 Nonlife Insurance -7.57 FTSE SmallCap Index -10.55 FTSE 100 Price Change FTSE 100 Price Change
Feb 15 chge% Index Feb 12 Feb 11 ago yield% Cover ratio adj Return FT 30 Div Yield 1.87 1.87 1.91 1.87 1.87 0.00 3.93 2.74 Mining 2.11 Mobile Telecomms -7.81 Industrial Eng -10.90 3I Group PLC 412.30 11.40 Kingfisher PLC 331.20 3.30
FTSE 100 (100) 5824.28 2.04 5879.18 5707.60 5536.97 6857.05 4.37 1.03 22.22 12.21 4573.16 P/E Ratio net 23.83 23.88 23.36 23.90 23.83 0.00 19.44 14.26 Personal Goods -0.41 Food Producers -7.83 FTSE 250 Index -11.47 Aberdeen Asset Management PLC 228.80 8.40 Land Securities Group PLC 1024 28.00
FTSE 250 (250) 15728.10 1.92 15876.36 15431.31 15178.80 16861.24 2.87 1.85 18.81 22.27 10961.69 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Basic Materials -0.95 General Retailers -8.09 Electricity -11.61 Admiral Group PLC 1700 26.00 Legal & General Group PLC 212.10 4.40
FTSE 250 ex Inv Co (208) 17082.16 2.06 17243.19 16737.49 16439.89 18252.17 2.89 1.95 17.76 20.11 12136.94 FT 30 hourly changes Oil & Gas Producers -1.07 Household Goods & Ho -8.16 Support Services -11.69 Anglo American PLC 393.05 19.10 Lloyds Banking Group PLC 59.84 1.36
FTSE 350 (350) 3241.39 2.02 3271.94 3177.10 3089.53 3756.84 4.11 1.13 21.55 6.42 5129.18 8 9 10 11 12 13 14 15 16 High Low Oil & Gas -1.39 Forestry & Paper -8.47 Technology -12.00 Antofagasta PLC 442.80 9.50 London Stock Exchange Group PLC 2332 45.00
FTSE 350 ex Investment Trusts (308) 3220.21 2.05 3250.56 3155.62 3067.13 3736.72 4.15 1.13 21.41 6.30 2623.67 2621.3 2682.8 2685.3 2687.8 2694.5 2696.2 2694.5 2693.4 2693.3 2699.6 2621.3 Tobacco -1.41 FTSE 100 Index -8.57 Electronic & Elec Eq -12.01 Arm Holdings PLC 893.00 7.50 Marks And Spencer Group PLC 424.80 7.40
FTSE 350 Higher Yield (106) 2981.60 1.82 3009.70 2928.41 2833.32 3657.73 5.88 0.80 21.16 8.60 4843.51 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Beverages -2.51 Industrial Transport -8.70 Travel & Leisure -12.48 Ashtead Group PLC 821.50 16.50 Merlin Entertainments PLC 401.80 7.40
FTSE 350 Lower Yield (244) 3192.02 2.25 3222.11 3121.71 3051.48 3489.00 2.18 2.09 21.99 3.36 3382.14 Gas Water & Multi -3.41 Consumer Services -8.79 Real Est Invest & Tr -12.80 Associated British Foods PLC 3119 67.00 Mondi PLC 1255 34.00
FTSE SmallCap (286) 4196.49 1.23 4236.05 4145.59 4152.19 4508.83 3.15 1.39 22.79 12.47 5769.66 Consumer Goods -3.66 FTSE All{HY-}Share Index -9.13 Tech Hardware & Eq -13.50
FTSE SmallCap ex Inv Co (152) 3801.69 0.93 3837.53 3766.52 3759.99 3976.68 3.10 1.85 17.39 7.73 5483.67 FX: EFFECTIVE INDICES Aerospace & Defense -4.66 Media -9.39 Chemicals -13.84
Astrazeneca PLC 4151 104.50 National Grid PLC 952.60 15.20
Aviva PLC 428.10 8.90 Next PLC 6860 100.00
FTSE All-Share (636) 3192.10 2.00 3222.19 3129.63 3046.53 3690.05 4.08 1.13 21.59 6.43 5109.93 Utilities -5.11 Pharmace & Biotech -9.54 Construct & Material -14.30
Feb 12 Feb 11 Mnth Ago Feb 15 Feb 12 Mnth Ago Babcock International Group PLC 897.00 28.50 Old Mutual PLC 165.80 5.70
FTSE All-Share ex Inv Co (460) 3158.45 2.03 3188.23 3095.76 3010.50 3657.82 4.13 1.14 21.31 6.19 2615.96 Fixed Line Telecomms -5.81 Health Care -9.57 Real Est Invest & Se -15.33 Bae Systems PLC 481.70 14.60 Pearson PLC 778.00 17.00
FTSE All-Share ex Multinationals (572) 1071.27 1.86 896.26 1051.71 1031.81 1188.38 3.14 1.52 20.97 1.58 1828.79 Australia 87.71 87.23 88.41 Sweden 78.45 78.66 79.57 Leisure Goods -5.86 Health Care Eq & Srv -9.89 Financial Services -16.52 Barclays PLC 160.75 3.55 Persimmon PLC 1928 33.00
FTSE Fledgling (100) 7208.50 0.57 7276.45 7167.54 7181.98 7149.58 2.67 1.28 29.27 18.23 13021.75 Canada 84.14 83.56 82.88 Switzerland 158.13 157.62 158.67 Industrial Metals & -6.21 Industrials -10.24 Automobiles & Parts -17.19 Barratt Developments PLC 552.50 7.50 Provident Financial PLC 3107 88.00
FTSE Fledgling ex Inv Co (50) 10200.94 -0.01 10297.10 10202.24 10226.29 9086.62 2.72 1.68 21.87 9.36 17898.93 Denmark 107.07 107.29 106.05 UK 87.12 86.58 89.49 NON FINANCIALS Index -6.22 Equity Invest Instr -10.30 Financials -17.22 Berkeley Group Holdings (The) PLC 3161 -20.00 Prudential PLC 1194 36.50
FTSE All-Small (386) 2913.72 1.19 2941.19 2879.36 2884.01 3118.62 3.13 1.39 23.06 8.59 5143.56 Japan 135.73 136.38 131.96 USA 103.20 102.83 106.22 Telecommunications -6.99 Oil Equipment & Serv -10.34 Life Insurance -20.30 Bg Group PLC 1062 42.00 Randgold Resources LD 6030 -125.00
FTSE All-Small ex Inv Co Index (202) 2843.71 0.89 2870.52 2818.51 2814.11 2953.61 3.09 1.85 17.54 5.65 5196.96 New Zealand 110.61 110.91 111.53 Euro 88.47 89.06 86.31 Software & Comp Serv -10.43 Banks -20.67 Bhp Billiton PLC 693.60 -3.00 Reckitt Benckiser Group PLC 6371 405.00
FTSE AIM All-Share Index (845) 671.66 1.03 677.99 664.82 663.90 703.19 1.62 0.60 102.73 0.67 723.57 Norway 83.54 83.53 82.31
BP PLC 332.80 0.30 RELX PLC 1162 23.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3775 66.50 Rio Tinto PLC 1851 3.50
Oil & Gas (17) 5956.78 0.85 6012.93 5906.38 5577.38 7847.66 7.41 -0.34 -39.13 36.51 5021.23 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 678.50 26.00 Rolls-Royce Holdings PLC 615.00 9.00
Oil & Gas Producers (10) 5677.75 0.78 5731.27 5633.87 5319.54 7459.41 7.46 -0.39 -33.97 35.94 4949.87 Bt Group PLC 455.45 7.20 Royal Bank Of Scotland Group PLC 246.30 6.20
Oil Equipment Services & Distribution (7)12607.11 3.02 12725.95 12237.16 11589.79 18004.93 6.04 1.41 11.74 0.00 9272.01 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1835 45.00 Royal Dutch Shell PLC 1540.5 14.50
Basic Materials (28) 2741.93 0.95 2767.77 2716.06 2529.46 4981.88 7.48 1.83 7.32 2.22 2690.90 Burberry Group PLC 1209 35.00 Royal Dutch Shell PLC 1542 16.50
Chemicals (7) 10171.32 2.53 10267.20 9920.76 9832.80 12366.40 2.83 2.26 15.63 60.48 8793.52 Feb 15 No of US $ Day Mth YTD Total
YTD Gr Div Feb 15 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1092 18.00 Royal Mail PLC 432.10 4.60
Forestry & Paper (1) 14750.68 2.78 14889.73 14351.06 13751.63 14703.67 2.44 3.37 12.12 0.00 15322.61 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3149 43.00 Rsa Insurance Group PLC 397.60 8.40
Industrial Metals & Mining (2) 707.24 3.08 713.91 686.11 647.05 1943.47 1.63 -18.64 -3.29 0.00 617.20 FTSE Global All Cap 7729 402.02 0.9 -4.7
-10.7 -10.9 551.11
2.8 Oil & Gas 164 281.47 3.0 3.0 -7.7 431.95 -7.3 4.4 Centrica PLC 192.40 2.80 Sabmiller PLC 4138 -10.00
Mining (18) 7237.64 0.56 7305.86 7197.26 6618.82 14347.01 8.63 1.80 6.46 0.00 3715.92 FTSE Global All Cap 7093 414.46 0.9 -4.5
-10.5 -10.7 558.20
2.8 Oil & Gas Producers 116 264.61 3.1 3.1 -7.3 413.18 -6.9 4.4 Coca-Cola Hbc AG 1336 33.00 Sage Group PLC 566.50 0.50
FTSE Global Large Cap 1416 356.77 1.0 -4.4
-10.3 -10.5 500.40
3.0 Oil Equipment & Services 39 252.82 2.5 2.5 -8.9 354.38 -8.4 4.4 Compass Group PLC 1205 15.00 Sainsbury (J) PLC 247.20 7.90
Industrials (119) 4007.42 2.28 4045.19 3918.12 3803.42 4590.58 2.78 1.26 28.67 1.31 3983.35
Construction & Materials (14) 4702.72 2.10 4747.05 4605.95 4548.84 4944.00 2.50 -0.82 -48.67 0.00 4805.47 FTSE Global Mid Cap 1638 534.68 0.8 -5.0
-11.1 -11.2 699.20
2.4 Basic Materials 261 319.24 1.0 1.0 -9.1 468.32 -9.1 3.8 Crh PLC 1724 44.00 Schroders PLC 2423 40.00
Aerospace & Defense (9) 4208.36 2.45 4248.03 4107.67 3880.81 5312.06 2.71 1.32 28.02 1.32 4351.91 FTSE Global Small Cap 4675 547.91 0.7 -5.9
-12.5 -12.6 695.89
2.3 Chemicals 122 523.26 0.1 0.1 -11.6 769.85 -11.5 3.0 Dcc PLC 5385 30.00 Severn Trent PLC 2111 51.00
General Industrials (6) 3411.34 2.21 3443.49 3337.73 3239.28 3455.92 3.35 1.67 17.94 0.00 3713.83 FTSE All-World 3054 235.71 1.0 -4.5
-10.4 -10.6 340.92
2.9 Forestry & Paper 16 174.20 1.6 1.6 -11.2 280.79 -10.8 4.0 Diageo PLC 1809 51.00 Shire PLC 3797 158.00
Electronic & Electrical Equipment (10) 4861.62 2.81 4907.45 4728.73 4660.95 5163.35 2.54 1.90 20.70 0.00 4305.49 FTSE World 2537 418.83 1.0 -4.5
-10.2 -10.4 813.44
2.9 Industrial Metals & Mining 67 223.08 1.4 1.4 -13.3 328.64 -13.3 3.7 Direct Line Insurance Group PLC 364.00 6.20 Sky PLC 995.00 17.50
Industrial Engineering (14) 7042.70 3.39 7109.09 6811.89 6570.42 9840.63 4.26 1.57 14.91 10.28 8258.41 FTSE Global All Cap ex UNITED KINGDOM In 7405 413.18 0.8 -4.8
-10.7 -10.9 558.54
2.7 Mining 56 336.36 3.9 3.9 3.9 492.95 4.0 6.4 Dixons Carphone PLC 437.10 6.00 Smith & Nephew PLC 1095 30.00
Industrial Transportation (8) 3665.03 1.99 3699.58 3593.53 3477.68 4184.79 4.14 0.94 25.74 0.00 3083.27 FTSE Global All Cap ex USA 5738 366.46 -0.2 -5.1
-12.1 -12.2 532.49
3.4 Industrials 534 268.70 0.5 0.5 -10.2 374.13 -10.0 2.6 Easyjet PLC 1508 22.00 Smiths Group PLC 944.00 28.00
Support Services (58) 6015.56 2.12 6072.27 5890.63 5753.10 6678.85 2.53 1.52 26.11 2.30 6038.82 FTSE Global All Cap ex JAPAN 6468 412.13 1.6 -4.1
-10.0 -10.2 570.03
2.9 Construction & Materials 110 377.07 0.1 0.1 -10.0 548.73 -10.0 2.4 Experian PLC 1119 17.00 Sports Direct International PLC 390.70 10.90
FTSE Developed 2100 381.30 1.1 -4.8
-10.4 -10.6 526.71
2.8 Aerospace & Defense 27 450.95 1.1 1.1 -11.0 622.54 -10.8 2.6 Fresnillo PLC 873.50 -23.50 Sse PLC 1367 21.00
Consumer Goods (40) 18053.82 2.40 18224.01 17630.74 17469.21 16747.22 2.93 1.85 18.42 41.44 12764.62
FTSE Developed All Cap 5717 398.58 1.0 -5.0
-10.7 -10.9 544.60
2.8 General Industrials 56 200.64 1.4 1.4 -7.5 300.92 -7.1 2.9 Gkn PLC 265.50 10.10 St. James's Place PLC 855.00 25.00
Automobiles & Parts (1) 6239.37 3.95 6298.19 6002.02 5842.22 8824.42 3.20 1.53 20.40 0.00 5737.98
FTSE Developed Large Cap 914 353.45 1.1 -4.7
-10.3 -10.5 494.97
2.9 Electronic & Electrical Equipment 69 265.73 -1.6 -1.6 -16.0 340.91 -15.9 2.3 Glaxosmithkline PLC 1411 47.50 Standard Chartered PLC 453.05 24.05
Beverages (6) 15262.20 1.47 15406.07 15040.65 14949.29 14427.63 2.51 1.72 23.16 0.00 10395.45
FTSE Developed Europe Large Cap 220 292.92 2.2 -4.9
-11.1 -11.2 462.41
4.0 Industrial Engineering 104 479.63 -0.2 -0.2 -10.5 656.71 -10.4 3.1 Glencore PLC 101.20 2.74 Standard Life PLC 342.40 9.00
Food Producers (10) 8401.37 2.22 8480.57 8219.29 8142.07 7837.02 1.95 1.39 36.77 3.94 7033.89
FTSE Developed Europe Mid Cap 302 450.32 1.5 -6.3
-12.1 -12.2 645.51
3.0 Industrial Transportation 96 460.79 1.1 1.1 -6.9 639.29 -6.9 2.6 Hammerson PLC 559.50 24.50 Taylor Wimpey PLC 171.60 0.80
Household Goods & Home Construction (13)13200.49 4.28 13324.92 12658.78 12430.47 11338.12 2.21 2.62 17.30 0.00 8979.92
FTSE Dev Europe Small Cap 718 632.98 1.1 -7.5
-13.4 -13.5 883.74
2.6 Support Services 72 244.37 0.4 0.4 -11.4 326.84 -11.3 2.2 Hargreaves Lansdown PLC 1176 46.00 Tesco PLC 178.80 1.80
Leisure Goods (2) 5313.12 3.03 5363.21 5156.81 5211.92 5094.05 4.50 1.32 16.78 0.00 4499.89
FTSE North America Large Cap 315 398.29 2.0 -3.7-8.5 -8.7 525.90
2.5 Consumer Goods 422 383.75 -0.1 -0.1 -7.9 546.63 -7.7 2.7 Hikma Pharmaceuticals PLC 1872 22.00 Travis Perkins PLC 1760 36.00
Personal Goods (6) 22939.01 2.40 23155.25 22400.94 22002.75 22785.30 2.88 3.18 10.90 146.46 14894.45
FTSE North America Mid Cap 394 573.97 2.2 -4.4
-10.2 -10.4 709.80
2.0 Automobiles & Parts 103 306.93 -2.0 -2.0 -19.6 419.66 -19.5 3.3 HSBC Holdings PLC 446.40 6.00 Tui AG 1027 19.00
Tobacco (2) 46267.66 1.94 46703.80 45389.11 45307.86 42101.62 3.94 1.29 19.72 207.72 28321.95
FTSE North America Small Cap 1511 561.65 1.9 -5.6
-12.3 -12.5 675.76
2.1 Beverages 48 550.41 1.0 1.0 -3.7 794.34 -3.7 2.6 Imperial Brands PLC 3632.5 79.00 Unilever PLC 3012 67.50
Health Care (19) 8848.09 3.11 8931.50 8581.28 8442.36 9860.88 3.96 0.50 50.84 0.18 6451.63
FTSE North America 709 265.15 2.0 -3.8-8.8 -9.0 358.72
2.4 Food Producers 106 536.62 0.5 0.5 -4.0 786.42 -3.8 2.3 Inmarsat PLC 968.50 22.00 United Utilities Group PLC 919.50 14.00
Health Care Equipment & Services (7) 6805.99 2.41 6870.14 6645.90 6535.34 6722.91 1.70 1.86 31.65 1.60 5771.86
FTSE Developed ex North America 1391 197.14 -0.4 -6.3
-12.9 -13.0 307.31
3.5 Household Goods & Home Construction 47 377.92 0.8 0.8 -5.9 536.41 -5.5 2.5 Intercontinental Hotels Group PLC 2299 25.00 Vodafone Group PLC 209.45 4.00
Pharmaceuticals & Biotechnology (12)11949.50 3.17 12062.15 11582.00 11394.96 13472.35 4.16 0.45 53.79 0.00 7739.37
FTSE Japan Large Cap 177 266.91 -6.2 -11.6
-18.6 -18.6 333.89
2.6 Leisure Goods 28 113.52 -2.4 -2.4 -13.9 146.23 -13.9 1.6 International Consolidated Airlines Group S.A. 504.50 24.70 Whitbread PLC 3789 82.00
Consumer Services (96) 4565.63 1.86 4608.66 4482.43 4420.41 4848.02 2.54 1.50 26.21 11.79 4131.82 FTSE Japan Mid Cap 303 416.48 -5.8 -8.9
-15.3 -15.3 503.24
1.9 Personal Goods 79 570.62 0.7 0.7 -4.5 774.77 -4.4 2.1
Food & Drug Retailers (7) 2828.93 1.95 2855.60 2774.90 2777.51 3438.50 1.89 -1.50 -35.31 0.00 3234.90 Intertek Group PLC 2727 59.00 Wolseley PLC 3505 113.00
FTSE Global wi JAPAN Small Cap 781 440.87 -6.3 -9.6
-16.2 -16.2 549.83
2.3 Tobacco 11 1216.42 -0.4 -0.4 0.0 2380.24 0.1 3.9 Intu Properties PLC 283.20 7.40 Worldpay Group PLC 299.00 11.70
General Retailers (32) 2749.44 1.71 2775.36 2703.27 2652.35 2945.93 2.64 2.24 16.90 1.98 3015.85
FTSE Japan 480 111.96 -6.1 -11.0
-17.9 2.4 Health Care
-17.9 157.38 173 405.92 0.8 0.8 -11.4 566.16 -11.3 2.1 Itv PLC 243.50 2.40 Wpp PLC 1432 41.00
Media (22) 6949.95 2.09 7015.46 6807.85 6703.91 7147.52 2.94 1.56 21.79 1.47 4103.99
FTSE Asia Pacific Large Cap ex Japan 530 476.03 -0.8 -3.1
-12.0 -12.0 712.50
3.7 Health Care Equipment & Services 61 593.37 1.0 1.0 -8.7 680.66 -8.6 1.1 Johnson Matthey PLC 2316 68.00
Travel & Leisure (35) 7876.85 1.72 7951.10 7743.35 7633.46 8160.76 2.35 1.68 25.28 50.80 7224.60
FTSE Asia Pacific Mid Cap ex Japan 431 664.97 -1.2 -3.1
-10.9 -11.0 960.05
3.3 Pharmaceuticals & Biotechnology 112 305.06 0.8 0.8 -12.3 442.23 -12.2 2.5
Telecommunications (7) 3786.59 1.83 3822.28 3718.69 3672.11 3937.69 4.32 0.16 148.93 0.00 3967.79 FTSE Asia Pacific Small Cap ex Japan 1424 445.02 -1.6 -3.6
-10.8 -10.9 634.05
3.1 Consumer Services 386 351.59 0.8 0.8 -9.8 457.44 -9.7 1.9
Fixed Line Telecommunications (5) 5174.14 1.61 5222.92 5091.91 5104.04 5041.88 2.99 1.64 20.33 0.00 4487.28
Mobile Telecommunications (2) 4794.42 1.97 4839.61 4701.60 4593.42 5202.76 5.25 -0.44 -43.38 0.00 4484.08
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
961
2012
378.33
512.37
-0.9
-0.2
-3.1
-11.8
-1.4
-10.3
-11.9 601.87
3.7 Food & Drug Retailers
-10.3 731.15
3.5 General Retailers
53 279.75
121 472.46
1.2
0.9
1.2 -6.7 378.72
0.9 -11.3 599.47 -11.3
-6.5 2.0
1.7
UK STOCK MARKET TRADING DATA
Utilities (7) 8100.82 1.63 8177.18 7970.60 7869.09 8531.54 5.01 1.36 14.66 33.42 8662.99 FTSE Emerging Large Cap 502 480.06 -0.1 -1.6
-10.8 -10.9 689.22
3.6 Media 87 262.05 1.1 1.1 -9.4 341.77 -9.2 2.2 Feb 15 Feb 12 Feb 11 Feb 10 Feb 09 Yr Ago
Electricity (2) 7896.08 1.64 7970.51 7768.33 7610.79 9228.10 6.41 1.34 11.63 145.17 10699.72 FTSE Emerging Mid Cap 452 655.69 -0.1 -0.4-7.6 -7.7 931.36
3.2 Travel & Leisure 125 344.64 0.0 0.0 -9.7 453.07 -9.5 1.9 SEAQ Bargains 5208.00 3955.00 3955.00 4328.00 3595.00 4067.00
Gas Water & Multiutilities (5) 7704.05 1.63 7776.67 7580.40 7497.56 7899.29 4.68 1.37 15.63 5.49 8242.73 FTSE Emerging Small Cap 1058 557.72 -0.5 -1.8-9.3 -9.4 767.25
3.3 Telecommunication 92 152.85 0.1 0.1 -2.9 270.02 -2.5 4.4 Order Book Turnover (m) 35.47 50.20 50.20 70.15 57.65 76.12
Financials (284) 3863.76 2.08 3900.18 3785.02 3658.82 4817.46 4.25 1.87 12.58 5.15 3378.81 FTSE Emerging Europe 99 250.06 1.4 0.6-6.3 -6.4 367.46
4.5 Fixed Line Telecommuniations 44 134.48 0.7 0.7 1.4 260.53 2.2 4.7 Order Book Bargains 800593.00 1087236.00 1087236.00 1247962.00 1136563.00 1272320.00
Banks (9) 3052.99 2.08 3081.77 2990.68 2836.68 4330.84 5.38 1.37 13.61 0.00 2104.52 FTSE Latin America All Cap 245 551.38 0.8 1.3-7.7 -7.9 815.82
3.9 Mobile Telecommunications 48 149.84 -0.7 -0.7 -9.0 239.12 -9.0 3.9 Order Book Shares Traded (m) 1367.00 1823.00 1823.00 1757.00 1633.00 1882.00
Nonlife Insurance (10) 2659.81 1.52 2684.88 2619.90 2565.38 2351.11 2.61 2.20 17.38 0.00 4470.09 FTSE Middle East and Africa All Cap 219 567.31 0.9 0.6-8.2 3.1 Utilities
-8.3 846.21 163 234.28 0.0 0.0 -1.3 430.94 -0.8 4.1 Total Equity Turnover (£m) 2688.55 - - 0.01 3367.70 -
Life Insurance/Assurance (11) 6500.70 2.73 6561.98 6328.22 6028.98 8279.35 4.66 1.59 13.50 0.00 5967.71 FTSE Global wi UNITED KINGDOM All Cap In 324 293.53 3.0 -3.7
-10.6 4.2 Electricity
-10.8 464.81 112 257.27 -0.2 -0.2 -0.6 468.46 -0.2 3.8 Total Mkt Bargains 899478.00 2.00 2.00 36.00 1275143.00 2.00
Index- Real Estate Investment & Services (21) 2642.45 1.19 2667.35 2611.40 2607.25 2862.49 2.40 5.63 7.38 3.70 6802.52 FTSE Global wi USA All Cap 1991 452.74 2.0 -4.4-9.5 2.3 Gas Water & Multiutilities
-9.7 581.74 51 245.87 0.4 0.4 -2.4 463.33 -2.0 4.5 Total Shares Traded (m) 6995.00 0.00 0.00 1.00 6179.00 0.00
Real Estate Investment Trusts (25) 2643.53 2.63 2668.45 2575.73 2563.66 2983.61 3.35 5.95 5.01 8.31 3133.45 FTSE Europe All Cap 1399 337.52 2.0 -5.3
-11.3 3.7 Financials
-11.5 516.51 675 168.62 2.1 2.1 -16.0 262.46 -15.8 3.5 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 6894.46 2.16 6959.45 6748.41 6548.41 7808.94 3.37 2.18 13.63 29.54 7511.84 FTSE Eurobloc All Cap 636 313.66 1.4 -6.8
-12.4 3.6 Banks
-12.6 485.73 244 145.67 2.8 2.8 -18.4 241.67 -18.2 4.2 (c) Market closed.
Equity Investment Instruments (176) 7001.22 1.28 7067.22 6912.86 6899.37 7714.95 2.92 1.07 32.06 23.98 3694.14 FTSE RAFI All World 3000 3004 4826.30 1.0 -4.6
-10.9 3.6 Nonlife Insurance
-11.1 6093.39 70 194.49 1.7 1.7 -9.3 270.99 -9.2 2.6
Non Financials (352) 3809.14 1.97 3845.05 3735.58 3644.43 4291.90 4.03 0.89 28.02 8.50 5346.49 FTSE RAFI US 1000 993 8091.76 2.2 -3.2-8.2 2.8 Life Insurance
-8.5 10263.05 51 156.36 1.9 1.9 -21.1 237.49 -21.0 3.7
Technology (19) 1285.09 1.30 1297.20 1268.57 1245.43 1303.98 1.60 2.00 31.27 4.56 1612.66 FTSE EDHEC-Risk Efficient All-World 3054 285.11 0.8 -4.0-9.5 2.6 Financial Services
-9.6 383.78 141 186.10 2.2 2.2 -16.3 248.25 -16.2 2.4 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1684.69 1.88 1700.57 1653.59 1639.93 1441.34 2.17 1.79 25.74 12.84 2225.27 FTSE EDHEC-Risk Efficient Developed Europe 522 251.39 1.5 -4.5-9.9 3.1 Technology
-10.0 367.29 184 155.00 0.7 0.7 -11.1 185.28 -10.9 2.0 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) 1387.50 0.81 1400.58 1376.41 1339.50 1608.40 1.10 2.37 38.45 0.00 1592.72 Software & Computer Services 85 277.64 0.7 0.7 -10.5 318.95 -10.4 1.2 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 99 111.60 0.7 0.7 -11.7 137.38 -11.4 2.9 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day 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 5788.94 5808.27 5813.78 5830.49 5835.75 5837.20 5834.78 5827.39 5841.02 5844.48 5788.73 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 15681.15 15719.13 15730.80 15745.57 15758.45 15736.83 15735.95 15750.69 15733.43 15763.71 15681.15 (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 4161.85 4232.73 4232.67 4235.25 4233.22 4232.92 4229.62 4226.25 4222.77 4236.21 4160.39
FTSE All-Share 3174.13 3185.72 3188.53 3196.42 3199.10 3199.01 3197.84 3195.00 3200.31 3202.52 3174.13 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:12:27:15 Day's Low08:03:30 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5536.97(11/02/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:12:28:00 Day's Low08:03:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3046.53(11/02/2016)
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 Acacia Mining Pre 868.131 930.248 124.16L 115.186 0.481L 0.221 2.8 2.802 May 27 4.2 4.3 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- All Leisure Group Pre 127.307 138.912 0.2 7.225L 0.9 12.1L - - - - - 02/12 20.00 Cogenpower PLC 21.00 - 23.00 20.00 1053.5
94p Nil 23-02-16 129.75 120.00 Chemring Group PLC 123.50 -6.50 Amino Technologies Pre 41.66 36.19 0.322 4.045 0.61 7.68 4.235 3.85 Apr 29 5.5 5 02/02 180.00 CYBG CYBG PLC 183.00 -2.46 210.00 179.00 160914.7
Celtic Int 31.443 31.293 11.685 6.601 12.56 7.12 - - - - -
City of London Investment Group Int 11.761 12.204 3.577 4.296 10.6 12.7 8 8 Mar 11 24 21.66
Fidessa Group Pre 295.479 275.012 39.085 39.09 77.6 77.1 25.4 25 Jun 10 38.5 38.1
Hammerson Pre 236 206.5 731.6 703.1 92.8 95.7 12.8 11.6 Apr 29 22.3 20.4
Heavitree Brewery Pre 7.082 7.198 1.173 1.642 18.8 28 3.675 3.675 Apr 22 7.35 7.35
Reckitt Benckiser Group Pre 8874 8836 2208 2126 244.4 447.1 88.7 79 May 26 139 139

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 16 February 2016 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 36.47 0.26 37.12 30.97 4.92 40.29 224363.44 Lockheed 206.08 -1.10 227.91 181.91 2.78 19.16 63327.46
ANZ 22.84 0.66 37.25 21.86 10.71 9.38 47189.05 Nokia 5.30 0.07 7.87 4.91 2.51 -38.44 23772.39 AstellasPh 1606 109.00 2047 1476 1.83 20.47 31647.43 AtlasCpcoB 173.80 3.20 270.00 162.60 1.66 15.74 8039.32 AutomData 81.74 1.53 90.67 64.29 2.40 27.27 37392.06 Lowes 64.87 1.47 78.13 62.62 1.47 21.88 59362.84
BHPBilltn 15.98 0.89 34.29 14.06 14.36 18.85 36344.27 SampoA 39.23 1.39 49.40 36.76 4.71 13.76 24648.87 Bridgestne 3984 414.00 5182 3561 2.71 12.86 28730.82 Ericsson 76.05 3.00 120.00 70.65 4.29 24.24 29794.18 Avago Tech 121.66 5.35 150.50 100.00 1.19 26.26 33637.72 Lyondell 76.46 3.03 107.32 69.10 3.69 8.60 34364.47
CmwBkAu 74.30 0.97 96.69 70.15 8.12 14.04 89843.4 France (€) Canon 3219 233.00 4539 2977.5 4.47 17.86 38078.8 H&M 276.90 7.90 368.50 259.80 3.29 22.71 54325.12 BakerHu 39.90 0.12 70.45 37.58 1.63 -67.04 17399.86 Marathon Ptl♦ 31.73 1.22 60.38 29.24 3.22 5.26 16911.27
CSL 104.43 1.13 108.68 85.40 1.33 27.50 34226.34 Airbus Grpe 53.38 2.07 68.50 49.40 2.13 15.56 47137.6 CntJpRwy 21475 2035 24800 18255 0.51 15.13 39235.92 Investor 272.70 7.90 363.40 256.80 3.17 13.80 24626.9 BankAm 11.95 0.79 18.48 10.99 1.60 9.38 124429.13 Marsh&M 56.08 1.13 59.99 50.81 2.48 21.41 29254.03
NatAusBk 24.75 0.61 39.71 23.82 10.74 10.71 46233.55 AirLiquide 96.50 2.65 123.95 90.77 2.41 20.75 37349.87 Denso 4260 370.00 6548 3879 2.65 14.09 33402.51 Nordea Bk 83.30 3.10 115.50 77.25 6.69 10.10 39990.4 Baxter 36.61 0.73 43.44 32.18 4.37 11.49 20026.32 MasterCard 84.89 2.78 101.76 74.61 0.77 25.84 93398.83
Telstra 5.44 -0.13 6.66 5.06 7.86 15.90 47097.38 AXA 20.15 0.80 26.02 18.80 4.29 10.60 54975.63 EastJpRwy 10145 943.00 12815 9191 1.13 18.60 35316.3 SEB 83.15 2.85 111.50 75.95 5.48 10.80 21388.82 BB & T♦ 31.58 1.30 41.90 29.95 3.08 12.26 24637.15 McDonald's 117.93 1.20 124.83 87.50 2.75 26.76 108286.84
Wesfarmers 42.80 0.37 46.95 36.65 7.69 19.89 34131.7 BNP Parib 40.61 1.04 61.00 37.00 3.50 7.44 56912.5 Fanuc 16545 1135 28575 15300 4.30 18.99 30220.08 SvnskaHn 108.60 4.20 426.00 95.85 3.68 14.75 24096.21 BectonDick 139.81 4.48 157.50 128.87 1.73 43.99 29614.07 McGraw Hill 85.52 3.26 109.13 78.55 1.51 20.71 23116.06
Westpc 28.63 0.57 40.07 27.69 8.68 12.50 67630.64 ChristianDior 160.10 6.85 195.35 140.80 1.79 13.28 32713.97 FastRetail 33220 830.00 61970 31060 0.93 43.21 31252.92 Swedbank 160.00 6.50 223.90 150.80 6.81 11.82 21469.87 BerkshHat 193999 3999 224186 186900 - 14.67 157358.21 McKesson 151.03 1.00 243.61 148.29 0.68 16.12 34523.49
Woolworths 22.50 0.33 34.71 22.00 8.80 13.24 20250.32 Cred Agr 8.35 0.36 14.49 7.59 3.97 18.84 24791.91 Fuji Hvy Ind 3767 295.00 5223 3411 2.66 7.81 26155.71 TeliaSonera 39.15 1.22 55.85 37.04 7.36 12.18 20095.06 Biogen 247.22 2.11 480.18 242.07 - 16.43 54060.27 Medtronic 73.40 0.78 79.50 55.54 1.75 44.88 103211.83
Belgium (€) Danone 60.03 1.43 67.74 51.73 2.28 43.51 44207.88 Hitachi 465.50 34.50 858.00 431.00 2.37 9.00 19955.44 Volvo 83.25 3.20 120.50 72.20 3.46 18.52 16015.74 BkNYMeln 33.83 1.09 45.45 32.20 1.92 15.34 36974.59 Merck 49.03 0.18 61.70 45.69 3.50 13.62 136967.42
AnBshInBv 105.00 2.70 124.20 87.73 2.70 22.25 189872.98 EDF 10.30 -0.13 24.89 10.04 11.05 5.95 22237.82 HondaMtr 2955.5 219.00 4499 2726 2.74 11.14 47482.72 Switzerland (SFr) BlackRock 306.80 12.59 382.84 275.00 2.63 16.52 50312.91 Metlife♦ 37.43 2.22 58.23 35.00 3.70 7.60 41608.18
KBC Grp 48.45 1.92 66.00 44.15 3.91 8.44 22776.29 Engie SA 13.76 0.41 19.88 13.15 6.62 40.55 37678.24 JapanTob 4532 407.00 4850 3551 2.02 21.92 80390.24 ABB 17.11 0.54 22.16 15.94 - 17.00 40543.84 Boeing♦ 108.63 0.19 158.83 102.10 3.29 14.88 71967.79 Microsoft 50.50 0.81 56.85 39.72 2.51 36.63 403389.61
Esslr Intl 108.00 3.90 125.15 94.13 0.86 41.40 26285.53 KDDI 2956.5 238.00 8550 2519 1.87 16.92 70559.81 CredSuisse 13.45 0.35 28.94 12.23 4.88 6.62 26950.67 BrisMySq 60.20 0.68 70.87 51.82 2.43 65.85 100430.84 Mnstr Bvrg 122.37 3.47 160.50 113.08 - 44.44 24807.15
Brazil (R$)
Hermes Intl 310.50 11.50 365.55 280.10 0.87 38.54 36857.18 Keyence 55400 3840 70100 50500 0.33 30.31 29875.18 Nestle 73.60 1.70 77.00 65.70 2.87 16.97 240227.51 Broadcom 54.67 0.17 58.51 40.33 0.92 25.37 30669.87 MondelezInt 38.10 0.42 48.58 33.97 1.55 7.79 60547.28
Ambev♦ 17.90 -0.02 20.46 15.99 8.79 23.22 70709.31
LOreal 153.65 3.50 181.30 140.40 1.60 32.15 96698.96 MitsbCp 1730.5 163.50 2837 1565 2.86 10.36 24404.69 Novartis 72.20 1.30 103.20 69.05 3.62 26.16 197859.34 CapOne♦ 62.54 2.39 92.10 58.49 2.14 9.21 33274.11 Monsanto 87.03 1.34 126.00 81.22 2.22 23.87 38324.13
Bradesco♦ 21.13 0.40 32.40 17.90 4.41 7.71 13405.66
LVMH 151.45 5.45 176.60 130.75 1.92 14.67 86334.18 MitsubEst 2122.5 148.00 2975 1970 0.65 58.06 26173.99 Richemont 64.75 2.35 87.55 60.10 2.35 21.90 34600.5 CardinalHlth 78.85 1.73 91.91 74.73 1.87 19.58 25967.59 MorganStly 23.09 1.40 41.04 21.16 2.07 14.88 44707.41
Cielo 29.80 0.55 46.27 28.03 2.28 16.18 14130.29
Nmrcble-SFR 32.40 2.40 60.01 27.05 - -42.05 15965.58 MitsubishiEle 1057 108.50 1718 947.00 2.35 10.20 20129.41 Roche 250.20 5.90 283.90 238.00 3.06 25.42 179946.96 Carnival 44.06 0.87 55.77 40.52 2.40 20.34 25455.43 MylanNV 41.83 0.41 76.69 37.59 - 24.46 20567.32
ItauHldFin 22.13 0.19 32.66 21.49 5.52 5.17 16947.15
Orange 15.36 0.47 16.98 12.21 3.56 44.37 45748.5 MitsuiFud 2501.5 233.00 3879 2260.5 1.03 21.56 21996 Swiss Re 89.45 3.45 99.75 76.85 4.71 37.39 33945.57 Caterpillar♦ 63.15 1.74 89.62 56.36 4.34 13.66 36768.06 Netflix 87.40 1.05 133.27 58.46 - 317.10 37414.3
Petrobras 6.49 0.18 16.26 5.67 - -2.55 12139.39
PernodRic 95.49 2.18 117.75 88.00 1.79 27.95 28498.14 MitUFJFin 484.80 38.60 936.80 431.90 3.41 5.09 60922.95 Swisscom 480.80 12.90 580.50 452.70 4.38 19.12 25496.62 CBS 43.18 -0.39 63.95 38.51 1.33 14.61 18727.29 NextEraE 111.67 -0.23 115.95 93.74 2.59 16.79 51428.04
Vale 10.70 0.45 27.89 8.60 21.80 -4.69 8651.63
Renault 73.57 5.24 100.25 59.59 2.35 8.73 24462.86 Mizuho Fin 168.30 13.10 280.40 149.30 4.23 6.27 37134.2 Syngent 400.30 7.30 435.20 288.50 2.80 28.77 38087.88 Celgene 102.45 2.86 140.72 92.98 - 53.78 80081.53 Nike 56.42 0.42 68.20 45.72 1.23 28.56 76161.17
Canada (C$) Murata Mfg 12750 1070 22220 11610 1.44 13.81 25473.27 CharlesSch♦ 22.82 0.60 35.72 21.51 1.00 24.09 30043.06 NorfolkS♦ 72.56 0.89 112.05 64.51 3.19 14.41 21637.29
Safran 52.16 1.65 72.45 48.87 2.10 -17.38 24458.33 UBS 14.80 0.30 22.57 13.51 4.84 9.59 58327.55
BCE 57.70 0.41 59.30 51.56 4.40 19.15 35928.33 NipponTT 4910 304.00 5419 3591 1.78 16.79 91293.09 ChevrnTx 85.43 2.44 112.93 69.58 4.78 19.44 160782.4 Northrop 181.25 -2.66 193.99 152.31 1.68 17.79 32795.96
Sanofi 69.79 0.99 101.10 66.44 3.87 18.43 102460.84 Zurich Fin 211.30 5.70 334.60 194.70 - 11.06 32535.54
BkMontrl♦ 71.90 2.34 80.76 64.01 4.48 11.00 33269.34 Nissan Mt 990.30 62.30 1350 923.30 3.48 7.90 39706.12 Chubb 114.31 3.47 134.49 94.35 2.20 14.63 37057.18 NXP 67.30 2.23 114.00 61.61 - 24.35 16942.88
Sant Gbn 33.85 0.84 44.84 31.47 1.67 24.93 21346.96 Taiwan (NT$)
BkNvaS 54.02 1.96 67.72 51.17 5.01 9.70 46730.54 Nomura 495.00 48.40 909.20 442.80 4.27 8.56 16781.97 Cigna 130.30 2.30 170.68 113.25 0.03 16.72 33568.92 Occid Pet 67.06 0.86 83.74 58.24 4.18 -8.89 51216.13
Schneider 47.62 1.59 75.29 45.32 3.67 18.08 31459.22 Chunghwa Telecom 104.50 1.50 105.00 93.10 4.49 21.16 24342.09
Brookfield 39.79 1.72 48.64 37.70 1.53 10.72 28273.78 Nppn Stl 1926 141.50 3505 1773.5 3.10 8.98 16233.43 Cisco 25.11 0.43 30.31 22.46 3.06 14.37 127738.41 Oracle 35.54 0.70 45.24 33.13 1.54 17.79 149311.36
SocGen 29.53 1.13 48.77 26.61 3.85 8.57 26765.57 HonHaiPrc 74.70 -1.90 99.70 72.70 4.68 8.07 35077.77
CanadPcR 171.71 2.87 245.05 140.02 0.81 19.32 18892.48 NTTDCMo 2653 158.00 2888 1961 2.43 21.55 96137.93 Citigroup♦ 37.54 2.56 60.95 34.52 0.31 8.86 111831.3 Pepsico 98.49 1.59 103.44 76.48 2.75 27.35 142358.7
Total 38.63 0.63 50.30 35.21 6.09 111.74 106577.65 MediaTek 205.50 5.50 480.00 193.50 10.33 10.43 9697.79
CanImp 87.06 3.73 102.90 82.19 4.91 9.86 24892.81 Panasonic 887.40 85.70 1853.5 799.00 1.57 131.88 19306.78 CME Grp 91.15 1.83 100.87 81.87 2.06 25.55 30829.96 Perrigo 138.60 3.53 215.73 133.23 0.33 143.84 20291.33
UnibailR 220.20 5.80 262.00 212.05 3.97 12.33 24436.32 TaiwanSem 145.00 -1.00 155.00 112.50 3.00 12.81 112901.66
CanNatRs 27.75 1.17 42.46 21.27 3.26 71.28 21851.62 Seven & I 4648 224.00 5998 4387 1.42 27.34 36542.64 Coca-Cola 43.11 0.70 43.91 36.56 2.87 28.98 187484.75 Pfizer♦ 29.36 0.23 36.46 28.25 3.58 23.11 180789.19
Vinci 60.36 1.73 64.00 50.08 2.67 18.91 39997.29
CanNatRy 76.54 0.39 88.89 66.62 1.54 18.21 43423.13 ShnEtsuCh 5675 493.00 8310 5160 1.70 18.13 21749.05 Thailand (THB) Cognizant 53.87 1.76 69.80 51.22 - 22.15 32835.34 Phillips66♦ 75.20 2.30 94.12 69.79 2.69 9.20 40114.71
Vivendi 17.62 0.39 24.83 16.30 10.75-215.92 27109.21
Enbridge♦ 44.13 1.15 66.14 40.03 3.91-114.99 27542.18 Softbank 4400 236.00 7827 4133 0.84 10.31 46855.04 PTT Explor 235.00 5.00 370.00 197.00 4.38 -75.46 18876 ColgtPlm♦ 65.70 1.26 71.56 50.84 2.15 25.47 58927.78 PhilMorris 89.06 0.72 90.56 75.27 4.31 20.06 137980.27
GtWesLif 33.23 0.87 37.70 30.42 3.85 12.23 23744.95 Germany (€)
Sony 2447 190.00 3970 2199 0.85 24.76 27397.85 United Arab Emirates (Dhs) Comcast 56.78 0.74 64.99 50.01 1.73 17.86 118926.24 PNCFin 80.93 2.76 100.52 77.67 2.34 11.42 41915.29
ImpOil 41.14 0.62 55.37 37.25 1.14 20.91 25083.79 Allianz 131.45 2.45 170.15 126.55 4.94 9.82 67545.93
SumitomoF 3156 296.50 5770 2819.5 4.52 8.42 39581.01 Emirtestele 16.25 0.20 16.60 10.45 3.78 18.44 34977.71 ConocPhil♦ 32.90 1.02 70.11 31.05 8.50 -42.06 40619.72 PPG Inds 91.78 2.51 118.95 82.93 1.45 22.49 24713.53
Manulife 16.31 0.47 24.20 15.32 3.94 13.04 23135.71 BASF 59.13 1.28 97.22 56.01 4.49 11.31 61065.98
Takeda Ph 5498 411.00 6657 5010 3.01 -41.94 38532.07 United Kingdom (p) Corning 18.39 0.58 25.03 15.42 2.56 20.29 21755.08 Praxair 103.83 1.77 130.38 95.60 2.57 22.17 29575.51
Potash 21.37 -0.45 47.03 20.65 9.06 9.13 12859.66 Bayer 96.43 1.66 146.45 91.66 2.21 22.60 89662.87
TokioMarine 3723 373.00 5504 3310 2.65 14.26 25013.42 AscBrFd 3119 67.00 3606 2705.75 1.09 43.71 35697.5 Costco♦ 148.65 2.00 169.73 117.03 1.00 29.01 65372.89 Prec Cast 234.95 0.10 234.99 187.00 0.05 26.36 32326.36
RylBkC 67.98 2.98 81.53 64.52 4.51 10.18 72694.46 BMW 73.08 2.82 123.75 66.00 3.76 9.00 49466.82
Toyota 6256 546.00 8783 5703 3.31 9.15 185210.76 AstraZen 4151 104.50 4931.68 3746 4.47 46.89 75863.29 CrownCstl 83.13 1.62 89.44 75.71 3.77 56.81 27746.41 Priceline 1058.01 2.77 1476.52 954.02 - 23.16 52671.85
Suncor En 30.57 1.14 40.93 27.32 3.97-3755.80 33973.89 Continental 184.35 5.40 234.25 171.30 1.67 14.62 41458.02
Mexico (Mex$) Aviva 428.10 8.90 578.68 400.10 4.23 11.20 25057.03 CSX 24.19 0.78 37.67 21.33 2.84 12.34 23298.6 ProctGmbl♦ 80.99 1.09 86.39 65.02 3.19 26.79 219042.76
ThmReut 49.46 1.25 55.92 47.25 3.58 14.81 27203.44 Daimler 62.80 1.89 96.07 57.01 3.70 9.18 75543.98
AmerMvl 12.39 0.34 17.17 10.87 2.17 21.05 27270.05 Barclays 160.75 3.55 289.90 147.75 4.04 70.97 39058.61 CVS 95.86 1.99 113.65 81.37 1.43 21.15 105301.33 Prudntl 61.64 3.64 92.60 57.19 3.59 8.42 27676.36
TntoDom 50.81 1.79 56.48 47.75 3.92 12.12 67832 Deut Bank 15.26 -0.05 33.42 13.03 4.66 -5.28 23658.37
FEMSA UBD 170.54 2.95 172.92 128.70 0.69 30.92 31964.47 BG 1062 42.00 1301.62 808.80 1.80 -20.51 52485.12 Danaher 84.92 1.33 97.62 81.25 0.57 24.72 58194.43 PublStor 233.61 -1.22 257.98 182.08 2.53 41.04 40390.21
TrnCan 48.66 0.42 59.50 40.58 4.20 -28.34 24593.9 Deut Tlkm 14.66 0.09 17.63 13.39 3.23 31.93 75934.94
WalMrtMex 45.59 0.43 47.44 32.51 1.27 32.47 41700.3 BP♦ 332.80 0.30 499.25 252.55 8.09 -12.16 88935.2 Deere 78.27 1.86 98.23 70.16 2.87 14.49 24788.12 Qualcomm 44.56 1.56 74.09 42.24 4.09 15.12 66612.18
ValeantPh 122.69 6.33 347.84 92.65 - 52.85 30112.38 DeutsPost 20.91 1.04 31.19 19.55 - 18.45 28469.6
BrAmTob 3775 66.50 3931.5 3231.5 3.92 17.53 101739.84 Delphi♦ 61.24 2.90 90.57 55.59 1.60 15.08 16996.16 Raytheon 120.24 -1.94 129.99 95.32 2.19 18.16 35951.52
E.ON 9.16 0.71 14.85 7.08 1.45 -2.08 20609.38 Netherlands (€)
China (HK$) BSkyB 995.00 17.50 1180 916.50 3.30 27.24 24727.2 Delta♦ 42.99 0.43 52.77 34.61 1.03 7.79 33468.09 Regen Pharm 379.01 11.77 605.93 350.26 - 70.00 38990.41
Fresenius Med 76.28 2.47 83.17 62.65 0.95 26.12 26834.12 Altice 12.39 1.02 47.73 9.98 - 233.97 11435.96
AgricBkCh 2.58 0.08 4.55 2.50 8.38 4.01 10181.31 BT 455.45 7.20 502.60 404.00 2.50 17.16 65593.96 DiscFinServ♦ 44.52 1.27 61.50 42.86 2.23 9.62 19031.58 ReynoldsAm 47.80 -0.70 50.42 33.71 2.85 18.96 68226.92
Fresenius SE 55.36 1.54 70.00 46.75 0.75 25.46 33920.95 ASML Hld 74.96 2.79 104.85 70.25 0.88 24.67 36523.57
Bk China 2.92 0.08 5.68 2.83 7.73 4.45 31347.48 Compass♦ 1205 15.00 1238 963.00 2.28 23.08 28641.11 Disney 91.15 0.84 122.08 86.25 1.47 17.37 148717.62 Salesforce 59.68 0.44 82.90 52.60 - -475.32 39627.52
HenkelKgaA 82.27 2.81 99.44 75.76 1.49 21.27 24032.34 Heineken 73.46 2.00 85.90 64.44 1.36 22.89 47577.08
BkofComm 4.50 0.23 8.61 4.24 7.12 4.28 20227.05 Diageo 1809 51.00 1979.5 1592.5 3.12 18.41 65812.32 DominRes 68.94 -0.27 76.59 64.54 3.52 23.92 41042.3 Schlmbrg♦ 70.31 1.98 95.13 59.60 2.79 43.98 88335.23
Linde 120.35 1.15 195.55 113.50 2.48 20.69 25133.79 ING 10.33 0.56 16.00 9.19 3.30 13.23 44947.94
BOE Tech 1.83 0.09 4.78 1.17 2.02 26.82 46.74 GlaxoSmh 1411 47.50 1645 1227.5 5.67 6.99 99343.6 DowChem 46.01 1.21 57.10 35.11 3.67 7.93 53284.27 Shrwin-Will 256.65 8.77 294.35 218.27 0.95 25.76 23894.25
MuenchRkv 169.60 5.50 206.50 156.00 4.33 9.64 31816.96 Unilever♦ 38.62 0.95 42.84 32.86 2.73 25.03 74451.52
Ch Coms Cons 6.51 0.26 17.00 5.77 3.08 6.48 3700.33 Glencore 101.20 2.74 318.46 66.67 11.31-235.35 21060.08 DukeEner♦ 76.24 -0.56 81.42 65.50 4.02 23.21 52478.61 SimonProp♦ 183.53 2.04 208.14 170.99 2.99 35.96 56787.5
SAP 67.14 1.85 75.75 53.91 1.55 27.45 92742.84 Norway (Kr)
Ch Evrbrght 3.24 0.14 5.65 3.09 6.82 4.40 2857.12 HSBC 446.40 6.00 674.57 420.15 7.51 8.80 127045.83 DuPont♦ 58.40 1.78 76.61 47.11 2.89 28.49 51182.17 SouthCpr♦ 26.37 1.72 33.31 21.55 1.52 21.68 20710.37
Siemens 82.23 1.58 106.35 77.91 3.80 13.78 81457.04 DNB 98.30 5.75 143.00 90.10 3.73 7.29 18565.96
Ch Rail Cons 7.16 0.31 17.70 6.72 2.49 6.44 1908.55 ImpTob♦ 3499.5 -99.00 3809 2921 3.77 19.78 48593.74 Eaton 54.20 1.10 73.82 46.19 3.77 13.15 25083.76 Starbucks♦ 55.86 0.94 64.00 42.05 1.19 34.93 82566.67
Volkswgn 118.65 8.05 254.50 95.00 3.83 9.95 39368.09 Statoil 117.40 3.20 161.70 97.25 5.92 -10.40 43408.11
Ch Rail Gp 4.88 0.19 12.30 4.21 1.90 8.45 2635.93 LlydsBkg 59.84 1.36 89.35 55.84 2.51 35.68 61815.42 eBay 22.49 0.41 29.83 21.52 - 14.33 26509.08 StateSt 54.68 2.30 81.26 50.73 2.23 13.41 22062.62
ChConstBk 4.53 0.22 7.98 4.31 7.89 4.21 139819.5 Hong Kong (HK$) Telenor 122.10 2.90 186.10 116.80 3.00 30.94 21258.14 Ecolab 106.63 3.33 122.48 99.99 1.18 29.95 31488.21 Stryker 97.33 1.17 105.34 86.68 1.43 26.27 36302.36
Natl Grid 952.60 15.20 992.50 806.40 4.50 16.60 51604.49
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36592.53 AIA 38.20 0.95 58.20 36.85 1.08 18.49 59087.03 Qatar (QR) EMC 24.13 -0.03 29.24 22.66 1.82 21.19 46784.14 Sychrony Fin 25.37 0.87 36.40 23.74 - 10.11 21154.16
Prudential 1194 36.50 1761.5 1045.99 3.09 12.15 44406.41
ChinaCitic 4.27 0.24 7.40 4.00 - 4.15 8158.25 BOC Hold 19.66 0.68 33.70 18.82 5.26 8.70 26685.49 QatarNtBk 138.50 2.30 173.75 122.50 4.42 10.53 26619.2 Emerson♦ 46.02 0.59 62.75 41.25 4.02 12.33 29596.19 Target♦ 69.95 2.46 85.81 66.46 2.84 16.72 43092.81
RBS 246.30 6.20 414.00 220.90 - -11.04 41393.79
ChinaLife 17.18 0.86 41.00 16.20 2.72 10.73 16412.18 Ch OSLnd&Inv 21.75 0.85 34.05 20.45 2.34 6.49 27533.6 EOG Res 67.70 2.14 101.36 57.15 0.94 -10.19 37216.96 TE Connect 54.49 0.83 73.73 51.70 2.30 19.98 20390.01
Russia (RUB) ReckittB 6371 405.00 6500 5403 2.18 27.07 65071.39
ChinaMBank 13.74 0.90 26.85 12.72 5.79 5.06 8098.17 ChngKng 40.10 1.10 77.55 38.20 - 9.14 19869.97 EquityResTP 71.29 0.57 82.53 61.90 2.89 32.39 25968.23 Telsa Mtrs 151.04 0.57 286.65 141.05 - -29.69 19778.89
Gzprm neft 133.43 2.13 166.94 122.75 6.18 9.68 40102.22 RELX 1162 23.00 1239 988.50 2.24 26.69 34386.02
ChinaMob 83.10 0.90 118.00 79.00 3.23 13.54 218442.28 Citic Ltd 10.36 0.24 16.40 10.02 1.92 5.30 38690.92 Exelon♦ 30.46 0.15 34.98 25.09 3.99 12.22 28020.91 TexasInstr 51.14 0.76 59.99 43.49 2.54 19.25 51877.03
Lukoil 2429 33.00 3199 2040.1 8.20 18.76 26229.32 RioTinto 1851 3.50 3280 1557 7.37 18.41 36769.43
ChinaPcIns 25.65 1.50 47.10 23.70 2.25 12.98 9139.01 Citic Secs 14.32 0.68 40.50 12.82 2.34 6.63 5365.11 ExpScripts 67.34 0.97 94.61 65.55 - 21.90 45540.43 TheTrvelers 107.49 3.72 116.48 95.21 2.17 10.08 31707.12
MmcNrlskNckl 8345 -5.00 12247 7840 18.45 9.03 16765.27 RollsRoyce 615.00 9.00 1061 497.00 3.76 -45.23 16347.77
ChMinsheng 6.43 0.26 11.88 6.13 3.42 4.29 5723.6 CK Hutchison 93.50 1.55 174.90 91.80 3.61 3.99 46330.24 ExxonMb♦ 81.03 1.43 93.45 66.55 3.35 17.93 337322.91 ThrmoFshr 126.48 3.18 143.65 117.10 0.45 26.95 50477.88
Novatek 607.20 -2.80 646.30 410.80 11.06 48.29 23406.15 RylDShlA 1542 16.50 2173.5 1256 8.15 93.21 93843.96
ChMrchSecs RMB 14.26 -0.33 40.00 13.85 2.89 8.30 10425.8 CNOOC 7.96 0.48 13.78 6.41 6.59 7.46 45625.68 Facebook 102.01 0.10 117.59 72.00 - 80.87 234106.82 TimeWrnr 62.26 -0.06 91.34 55.53 2.10 14.99 50778.1
Rosneft 271.00 0.30 294.20 214.80 3.47 6.38 36463.14 SABMill 4138 -10.00 4206.5 2773 1.80 34.28 96935.87
Chna Utd Coms RMB 4.01 -0.03 10.74 3.86 1.66 27.63 12938.4 HangSeng 126.50 2.40 162.10 121.10 4.09 9.80 31048.77 Fedex 128.60 4.18 185.19 119.71 0.67 34.16 35444.12 TimeWrnrC 184.99 5.64 194.22 145.44 1.99 29.55 52388.71
Sberbank 95.25 0.40 110.70 60.57 0.54 8.95 26104.23 Shire 3797 158.00 5870 3423 0.39 11.20 32528.78
ChShenEgy 11.10 0.50 22.50 10.12 7.80 7.96 4843.08 HK Exc&Clr 167.50 4.50 311.40 160.10 3.00 26.05 25988.19 FordMtr♦■ 11.55 0.38 16.74 10.44 5.10 6.39 45029.54 TJX Cos♦ 69.87 1.96 76.93 63.53 1.03 22.75 46780
Surgutneftegas 37.98 0.79 39.80 30.31 - 1.25 17224.22 StandCh 453.05 24.05 1166 373.40 11.32 10.59 21471.06
ChShpbldng RMB 6.08 -0.05 20.19 5.67 0.62-376.57 16619.82 MTR 35.55 - 40.00 33.10 2.73 14.13 26740.41 Franklin 32.32 0.87 54.85 31.00 1.91 10.54 19154.32 T-MobileUS 35.11 1.08 43.43 30.73 - 60.91 28651.07
Saudi Arabia (SR) Tesco 178.80 1.80 252.52 137.00 0.65 -2.57 21043.83
ChStConEng RMB 5.07 -0.06 12.52 4.88 3.35 6.59 23075.11 SandsCh♦ 25.85 1.10 39.85 20.75 7.11 15.24 26779.27 GenDyn 130.18 1.60 153.76 121.61 2.03 14.62 40507.04 UnionPac 77.20 1.66 124.52 67.06 2.80 14.34 65343.19
AlRajhiBnk 52.07 0.97 69.00 44.70 3.42 13.83 22560.66 Vodafone 209.45 4.00 258.00 197.70 5.36 -39.22 80411.99
ChUncHK 8.35 0.29 16.00 7.87 2.84 18.37 25670.79 SHK Props 82.60 1.80 137.60 79.00 2.68 8.14 30682.3 GenElectric 28.26 0.81 31.49 19.37 3.11 57.41 285687.09 UPS B 97.25 2.16 107.32 87.30 2.81 23.41 67699.87
Natnlcombnk 38.47 0.58 72.75 36.60 1.98 9.14 20459.55 WPP 1432 41.00 1616 1273 2.67 14.80 26804.26
CNNC Intl RMB 6.94 -0.13 14.38 4.07 - 19.79 4110.45 Tencent 138.20 4.90 171.00 124.00 0.24 39.92 166851.94 GenMills 56.89 0.91 59.87 47.43 2.92 24.47 33755.41 USBancorp 39.10 1.65 46.26 37.07 2.44 12.98 68392.82
SaudiBasic 66.66 2.00 110.50 59.50 7.36 8.87 53320.89 United States of America ($)
CSR 7.00 0.28 20.70 6.61 - 16.12 3928.15 India (Rs) GenMotors 27.71 0.81 39.00 24.62 4.88 4.78 42797.89 UtdHlthcre 111.82 1.20 126.21 95.00 1.64 18.96 106304.37
SaudiTelec 64.37 0.75 73.25 52.75 5.93 13.79 34326.08 21stC Fox A 24.55 -0.13 35.85 22.66 1.20 20.73 27482.42
Daqin RMB 6.67 -0.05 15.15 6.55 7.10 7.12 15094.25 Bhartiartl 318.90 - 452.45 282.30 0.70 23.15 18690.28 GileadSci 89.44 2.08 123.37 81.89 0.92 8.61 128899.16 UtdTech 85.95 1.29 124.45 83.39 2.92 19.34 71891.33
Singapore (S$) 3M♦ 153.96 3.29 170.50 134.00 2.61 20.69 93151.68
Gree Elec Apl 0.17 0.01 0.45 0.13 - -1.97 297.38 HDFC Bk 973.60 - 1128 944.20 0.83 21.32 36058.99 GoldmSchs 146.13 5.44 218.77 139.05 1.63 10.06 62329.73 ValeroEngy♦ 57.75 2.18 73.88 51.68 2.44 6.73 27806.82
DBS 13.41 0.39 21.50 13.01 4.20 10.82 23987.26 AbbottLb♦ 37.13 0.79 51.74 36.00 2.42 23.12 55387.56
GuosenSec RMB 14.24 -0.31 34.94 13.76 1.39 8.75 4757.99 Hind Unilevr 804.70 - 981.00 766.40 1.78 37.61 25529.91 Halliburton 29.11 0.31 50.20 27.64 2.43 -38.05 24986.34 Verizon 50.11 0.72 51.20 38.06 4.22 21.05 203891.23
JardnMt US$ 54.50 1.27 67.00 45.00 2.45 13.79 38279.2 Abbvie♦ 52.58 0.40 71.60 45.45 3.50 31.87 85954.99
HaitongSecs 11.28 0.54 27.90 10.00 2.63 7.21 4937.53 HsngDevFin 1080.45 - 1402.3 1058.05 1.40 18.17 25011.47 HCA Hold 66.01 1.76 95.49 43.91 - 14.46 26910.14 VertexPharm 83.23 3.52 143.45 78.51 - -31.79 20451.05
JardnStr US$ 27.60 -0.32 35.90 25.24 0.90 10.64 30720.15 Accenture 94.70 1.27 109.86 86.40 2.15 21.92 76349.35
Hngzh HikVDT RMB 27.07 0.15 56.48 23.72 1.46 19.53 13003.28 ICICI Bk 203.50 - 362.00 190.50 2.44 9.23 17343.08 Hew-Pack 9.42 0.40 17.64 8.91 6.68 4.06 16639.49 VF Cp 58.79 1.98 77.83 52.21 2.08 25.67 25062.71
OCBC 7.64 0.18 10.92 7.41 4.42 9.05 22489.89 Adobe 76.67 1.73 96.42 71.27 - 64.31 38206.99
Hunng Pwr 5.89 0.17 11.90 5.63 7.62 5.76 3554.29 Infosys 1091.75 - 2336 932.65 3.77 18.49 36585.66 HiltonWwde 18.54 0.69 31.60 16.16 0.36 25.67 18307.36 Viacom 32.81 0.56 73.52 30.11 4.57 7.18 11367.23
SingTel 3.74 0.16 4.57 3.38 4.52 15.99 42666.77 AEP♦ 60.60 -0.71 63.63 52.29 3.34 17.62 29743.53
IM Baotou Stl RMB 2.85 0.01 7.50 2.66 - -36.96 6829.2 ITC 303.70 - 409.95 294.00 2.10 23.84 35792.36 HomeDep 116.32 3.05 135.47 92.17 1.80 23.29 147479.95 Visa Inc♦ 70.42 1.95 81.01 60.00 0.70 26.20 135145.2
UOB 17.85 0.29 25.05 17.01 4.47 9.48 20528.86 Aetna 99.30 1.48 134.40 92.42 0.94 15.96 34625.91
In&CmBkCh 3.91 0.18 7.10 3.72 7.76 4.34 43568.01 L&T 1149.4 - 1893.8 1016.05 1.32 21.11 15697.41 Honywell 103.48 1.94 107.41 87.00 1.91 19.00 79751.15 Walgreen 77.08 1.55 97.30 71.50 1.74 19.52 83149.81
Aflac♦ 57.31 1.71 66.53 51.41 2.60 10.51 24456.39
IndstrlBk RMB 14.26 -0.16 21.42 11.90 3.94 5.52 41355.76 OilNatGas 200.35 - 344.70 187.75 4.90 8.81 25131.5 South Africa (R) HumanaInc 160.37 2.35 219.79 151.79 0.68 19.33 23770.67 WalMartSto 66.18 0.86 86.30 56.30 2.76 15.16 211901.29
AirProd 130.35 3.14 158.20 114.64 2.44 21.95 28110.02
Kweichow RMB 200.41 -3.46 290.00 166.20 2.15 15.88 38321.74 RelianceIn 946.75 - 1089.75 796.45 1.07 10.36 44969.31 Firstrand 46.97 2.57 58.47 34.08 4.86 9.88 16609.86 IBM♦ 121.04 3.19 176.30 116.90 3.78 8.69 117422.13 WellsFargo♦ 47.31 2.15 58.77 44.50 2.93 11.99 242859.23
Alexion 141.11 5.75 208.88 130.51 - 215.15 31790.86
Midea 1.72 -0.04 2.68 1.65 5.37 11.71 47.48 SBI NewA 167.85 - 315.00 148.25 2.11 8.06 19103.88 MTN Grp 145.79 6.69 250.00 109.56 10.26 7.28 16961.39 IllinoisTool 91.88 2.28 100.14 78.79 2.21 18.26 33397.62 Williams Cos 13.47 0.18 61.38 10.22 16.86 31.52 10099.33
Allegran 280.48 5.93 340.34 237.50 - -39.88 110544.05
New Ch Life Ins 23.80 1.70 56.55 22.00 1.04 6.85 3159.68 SunPhrmInds 850.20 - 1200.8 704.00 0.36 52.01 29999.21 Naspers N 1790 50.00 2270 1521.98 0.29 51.38 49411.28 Illumina 142.72 4.26 242.37 130.00 - 43.66 20894.21 Yahoo 27.04 0.28 46.17 26.15 - 110.93 25535.36
Allstate 63.91 1.59 72.51 54.12 1.76 11.66 24752.74
PetroChina 4.67 0.17 11.04 4.16 4.00 16.95 12649.63 Tata Cons 2269.15 - 2812.1 2164 1.78 20.46 65555.27 South Korea (KRW) Intcntl Exch 236.28 3.09 268.89 220.28 1.20 21.15 28090.78 Yum!Brnds 67.34 2.10 95.90 64.58 2.32 33.73 29039.81
Alphabet 706.89 0.53 810.35 529.00 - 31.55 206822.32
PingAnIns 32.55 1.95 62.90 30.50 2.47 8.93 31122.01 Indonesia (Rp) HyundMobis 248000-4000.00 272000 185500 1.18 12.83 19925.94 Intel♦ 28.64 0.42 35.59 24.87 3.29 12.51 135152.16 Venezuela (VEF)
Altria 59.97 -0.02 61.74 47.31 3.38 23.64 117581.95
PngAnBnk RMB 9.79 -0.13 17.50 9.30 1.75 6.31 17590.64 Bk Cent Asia 13350 75.00 15600 11000 0.97 21.21 24399.09 KoreaElePwr 52600 -300.00 54500 40800 0.93 2.83 27871.17 Intuit 94.56 3.15 109.21 79.63 1.04 61.64 24964.25 Bco de Vnzla 100.00 2.00 143.95 30.00 - - 27015.81
Amazon 507.08 3.26 696.44 365.65 - 413.75 238754.58
Pwr Cons Corp RMB 6.21 -0.11 20.00 5.93 1.59 12.39 3119.42 SK Hynix 27700 350.00 51700 25800 1.06 4.48 16153.88 John&John 101.82 0.12 105.49 81.79 2.72 20.47 281730.2 Bco Provncl 4000 - 4400 850.00 0.12 52.92 31948.88
Israel (ILS) AmerAir♦ 37.82 1.33 56.05 34.10 1.01 5.69 23838.91
SaicMtr RMB 18.52 0.13 29.18 14.00 6.92 7.18 31082.07 SmsungEl 1154000 24000 1510000 1033000 1.73 8.67 138178.38 JohnsonCn 34.81 0.60 54.52 33.62 3.01 16.59 22565.07 Mrcntl Srvcs 5300 100.00 5900 1350.5 0.14 41.07 23320.53
TevaPha 216.00 3.40 275.90 212.00 2.37 31.09 56702.84 AmerExpr 52.66 1.55 83.54 50.27 1.99 9.82 51830.39
ShenwanHong 0.14 - 0.41 0.12 - -2.18 44.31 Spain (€) JPMrgnCh 57.49 4.42 70.61 50.07 2.79 10.26 211628.15
Italy (€) AmerIntGrp 53.00 2.48 64.93 50.38 1.18 16.10 65561.66
ShgPdgBk RMB 18.45 0.07 20.12 11.91 4.05 7.07 52386.97 Kimb-Clark 128.63 2.21 132.43 103.04 2.68 47.34 635905.69 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.66 0.12 4.50 3.33 3.63 64.35 38676.67 BBVA 5.66 0.16 9.77 5.24 2.68 15.19 40532.7 AmerTower 85.67 2.01 104.12 83.07 1.89 67.01 36287.26
Sinopec Corp 4.27 0.15 7.79 3.86 5.51 20.71 13986.21 KinderM 14.96 1.00 44.71 11.20 11.87 29.22 33383.46 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 11.94 0.28 17.66 10.93 7.62 -16.53 48790.32 BcoSantdr 3.61 0.13 7.17 3.31 13.02 7.33 58574.74 Amgen♦ 144.72 3.26 181.81 130.09 1.97 18.11 109166.33
Sinopec Oil RMB 6.28 -0.04 14.23 5.71 - -183.68 430.17 Kraft Heinz 71.92 0.48 81.20 61.42 0.73 -49.41 87271.74 based on intraday trading over a rolling 52 week period.
Generali 11.60 0.45 19.21 10.90 4.90 9.90 20306.44 CaixaBnk 2.58 0.10 4.53 2.37 2.94 22.95 16875.54 Anadarko 37.81 2.13 95.94 28.16 2.73 -3.45 19212.88
Denmark (kr) Iberdrola 6.03 0.15 6.71 5.66 2.44 16.32 42950.73 Kroger♦ 38.33 1.90 42.75 27.32 0.93 20.16 37361.12 ♦ ex-dividend
IntSPaolo 2.48 0.08 3.65 2.12 2.67 15.06 44224.74 Anthem 121.55 1.57 173.59 115.63 1.82 12.19 31722.56
DanskeBk 185.50 10.50 218.00 165.50 2.81 28.92 28184.35 Inditex 27.56 0.45 35.38 25.97 1.34 32.92 96563.07 L Brands 81.87 -2.13 101.11 75.11 2.10 21.99 23695.99 ■ ex-capital redistribution
Luxottica 51.00 0.45 67.80 48.00 1.34 32.69 27735.44 Aon Cp♦ 93.80 1.11 107.08 83.83 1.12 22.45 25693.4
MollerMrsk 8530 600.00 16450 7355 3.32 35.41 13675.55 Repsol 8.97 0.18 18.75 7.95 10.10 27.73 14120.76 LasVegasSd 44.09 3.84 61.59 34.88 5.30 16.61 35159.62 # price at time of suspension
Unicred 3.40 0.11 6.61 2.77 3.34 11.24 22839.19 Apple 93.99 0.29 134.54 92.00 2.12 10.20 521135.36
NovoB 338.70 17.50 415.00 281.50 1.40 27.95 105234.76 Telefonica 9.15 0.43 14.31 8.48 4.14 16.25 50045.8 LibertyGbl 32.83 1.40 58.66 30.65 - -22.19 8297.98
ArcherDan♦ 32.45 0.82 53.31 29.86 3.18 11.74 19318.41
Lilly (E)♦ 71.27 -0.15 92.85 68.31 2.66 33.78 78972.62

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 Prec Cast 234.95 234.85 0.10 0.04 - - 1.23 Feb 15 date Coupon S* M* F* price yield yield yield US Feb 15 date Coupon S* M* F* price yield yield yield US
RollsRoyce 615.00 606.00 9.00 1.49 100.00 19.4 13.03 Broadcom 54.67 54.50 0.17 0.31 - - -6.26 High Yield US$ US$
Deut Bank 15.30 15.30 0.00 0.00 1.48 10.7 10.38 Naspers N 1790.00 1740.00 50.00 2.87 -183210.00 -99.0 -1.59 Navient Corporation 06/18 8.45 BB- Ba3 BB 101.61 7.82 -0.02 0.73 7.11 Halliburton Company 02/27 6.75 A A2 A- 118.57 4.63 0.00 0.03 2.88
Cisco 25.11 24.68 0.43 1.74 2.22 9.7 -0.95 MTN Grp 145.79 139.10 6.69 4.81 -13849.21 -99.0 23.77 High Yield Euro Cummins Inc. 02/27 6.75 A+ A2 A 122.89 4.18 0.00 -0.12 2.43
Unicred 3.29 3.29 0.00 0.00 0.28 9.4 -22.60 Firstrand 46.97 44.40 2.57 5.79 -4403.03 -98.9 20.44 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 102.53 6.54 0.00 -0.28 4.79
Shire 3797.00 3639.00 158.00 4.34 299.00 8.5 -9.07 Viacom 32.81 32.25 0.56 1.74 -10.43 -24.1 -21.30 SouthTrust Bank 12/27 6.57 A Aa3 A+ 121.50 4.28 0.00 -0.14 2.53
WPP 1432.00 1391.00 41.00 2.95 94.00 7.0 -0.30 Williams Cos 13.47 13.29 0.18 1.35 -3.65 -21.3 -18.56 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 111.86 4.74 0.00 0.10 -
RBS 246.30 240.10 6.20 2.58 15.60 6.8 -6.88 MylanNV 41.83 41.42 0.41 0.98 -9.57 -18.6 -16.50 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 120.75 4.30 0.00 -0.58 -
ReckittB 6371.00 5966.00 405.00 6.79 381.00 6.4 -2.20 Nomura 495.00 446.60 48.40 10.84 -82.70 -14.3 -20.63 Brazil 01/18 8.00 BB+ Baa3 BB+ 104.31 5.61 0.00 0.00 4.90
Russia 07/18 11.00 BB+ Ba1 BBB- 117.42 3.50 -0.01 -0.39 2.79 Euro
Renault 73.57 68.33 5.24 7.67 4.35 6.3 -2.08 Manulife 16.31 15.84 0.47 2.97 -2.47 -13.2 -13.38 Electricite de France (EDF) 03/27 4.13 A+ A1 A 121.30 1.97 0.00 -0.08 0.22
AstraZen 4151.00 4046.50 104.50 2.58 245.00 6.3 -2.58 Telenor 119.20 119.20 0.00 0.00 -17.50 -12.8 -9.78 Peru 03/19 7.13 BBB+ A3 BBB+ 113.49 2.62 0.00 -0.15 1.91
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 91.83 3.53 0.00 0.35 1.78
StandCh 453.05 429.00 24.05 5.61 26.05 6.1 -9.90 Softbank 4400.00 4164.00 236.00 5.67 -642.00 -12.7 -20.29 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 103.53 2.89 0.00 -0.19 1.14
CSX 24.19 23.41 0.78 3.33 1.36 6.0 2.07 Swedbank 153.50 153.50 0.00 0.00 -21.80 -12.4 -6.22 Brazil 01/21 7.88 BB+ Baa3 BB+ 94.87 6.19 -0.01 -0.08 4.98
Colombia 07/21 4.38 BBB Baa2 BBB 98.83 4.68 -0.01 -0.03 3.47 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 112.73 2.01 0.00 -0.37 -
Nmrcble-SFR 32.40 30.00 2.40 8.00 1.82 5.9 -8.35 Boeing 108.63 108.44 0.19 0.18 -13.93 -11.4 -17.65
Poland 03/22 5.00 A- A2 A- 111.71 2.91 0.00 -0.29 1.71 Yen
Netflix 87.40 86.35 1.05 1.22 4.61 5.6 -25.03 BakerHu 39.90 39.78 0.12 0.30 -4.95 -11.0 -2.78
Turkey 09/22 6.25 - Baa3 BBB- 108.71 4.75 -0.01 -0.19 3.55 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
HiltonWwde 18.54 17.85 0.69 3.87 0.94 5.3 -5.21 MollerMrsk 7930.00 7930.00 0.00 0.00 -960.00 -10.8 9.85
Vivendi 17.62 17.24 0.39 2.23 0.86 5.1 -6.28 EDF 10.30 10.43 -0.13 -1.25 -1.24 -10.7 -13.23 Turkey 04/26 4.25 - Baa3 BBB- 94.27 5.04 0.00 -0.24 3.29 £ Sterling
GileadSci 89.44 87.36 2.08 2.38 4.30 5.1 -7.89 Fuji Hvy Ind 3767.00 3472.00 295.00 8.50 -453.00 -10.7 -15.63 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
LasVegasSd 44.09 40.25 3.84 9.54 2.11 5.0 13.31 TimeWrnr 62.26 62.32 -0.06 -0.10 -6.90 -10.0 -12.42 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
Illumina 142.72 138.46 4.26 3.08 6.67 4.9 -15.37 MitUFJFin 484.80 446.20 38.60 8.65 -53.40 -9.9 -29.02 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.79 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 0.85 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- 110.27 4.48 0.00 0.41 2.73
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
Feb 15 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Feb 12 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 25.40 -2.74 28.14 53.29 10.88 Feb 15 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 24.58 -2.81 27.39 56.32 7.04 Tr 4pc '16 102.01 0.37 0.00 5.71 -81.50 2.78 102.23 100.00 0.35
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 176.19 -0.44 1.26 1.68 3.24 -1.62 VXN 29.74 -2.13 31.87 46.72 11.15 Tr 1.75pc '17 101.31 0.34 -2.86 21.43 -12.82 -29.17 102.48 101.30 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 292.54 -0.87 -1.56 -0.89 -2.09 -3.03 VDAX 29.04 -1.76 30.80 32.55 - Tr 5pc '18 109.66 0.28 0.00 27.27 -39.13 -61.64 112.88 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.39 -0.10 0.15 0.37 0.15 0.37 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 112.25 0.46 2.22 15.00 -33.33 -51.06 114.29 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.16 -0.24 -0.59 -0.06 0.02 -1.91 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 116.46 0.63 1.61 6.78 -30.77 -44.25 118.06 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 228.99 -0.18 -0.33 1.64 1.31 1.01 Tr 1.5pc '21 103.08 0.86 1.18 2.38 -27.73 -31.20 141.03 99.91 0.16
Gilts( £) 301.73 -1.15 1.29 5.18 3.35 4.49 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 118.18 0.91 2.25 2.25 -25.41 -33.09 119.14 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 246.16 0.34 2.12 3.28 3.30 -0.20 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 131.45 1.31 1.55 1.55 -18.13 -20.61 132.97 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 296.51 -0.85 -0.82 0.54 -0.77 -1.36 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 128.60 1.58 1.28 1.28 -15.51 -15.05 130.43 119.79 0.31
Feb 15 (Libor: Feb 12) night Day Week Month month month month year Overall ($) 230.79 0.15 1.04 2.56 1.04 2.56 Australia 10/18 3.25 103.65 1.84 0.07 0.08 -0.07 0.00 Tr 4.25pc '32 132.19 1.94 1.04 1.57 -12.22 -9.35 134.41 121.93 0.35
US$ Libor 0.37080 0.000 0.250 0.000 0.43050 0.61820 0.85785 1.11560 Overall( £) 297.46 -1.06 0.66 3.79 2.12 2.71 11/27 2.75 100.66 2.68 0.10 0.06 0.00 0.00 Tr 4.25pc '36 134.62 2.12 0.95 1.44 -11.30 -7.02 137.18 123.52 0.28
Euro Libor -0.28357 0.000 -0.002 0.000 -0.24857 -0.20200 -0.12286 -0.01743 Overall(€) 223.48 -0.21 -0.28 1.26 0.99 0.46 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 145.17 2.25 0.90 1.81 -9.64 -5.06 148.39 132.20 0.26
£ Libor 0.48125 0.000 0.001 0.000 0.50881 0.58975 0.73000 0.98275 Treasuries ($) 225.22 0.30 1.61 3.89 1.61 3.89 10/25 1.20 105.76 0.59 -0.01 0.04 0.00 0.00 Tr 3.75pc '52 138.99 2.19 0.92 1.86 -9.13 -8.37 142.78 121.95 0.22
Swiss Fr Libor 0.000 -0.79700 -0.77560 -0.72680 -0.64620 FTSE Belgium 06/18 0.75 101.84 -0.05 0.00 0.00 0.00 0.00 Tr 4pc '60 153.09 2.13 0.95 0.95 -9.75 -10.13 157.42 131.72 0.22
Yen Libor 0.000 -0.01414 0.01186 0.02471 0.09614 Sterling Corporate (£) 109.40 -0.62 - - -1.67 -5.96 06/26 1.00 102.44 0.75 -0.05 0.03 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.24000 -0.18300 -0.11600 -0.00900 Euro Corporate (€) 106.16 0.09 - - 0.88 -4.48 Canada 11/17 0.25 99.65 0.46 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 745.16 10.26 - - -1.93 -27.40 06/26 1.50 102.42 1.25 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.43000
-0.29500
0.58000
-0.22500
0.82000
-0.13500
Eurozone Govt Bond 115.07 0.25 - - 0.99 -1.75 Denmark 11/18 0.25 101.47 -0.28 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 1.75 111.33 0.55 -0.01 0.03 -0.25 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 1.00 100.06 0.98 0.00 -0.04 -0.17 0.00
Fixed Coupon Feb 15 chg % Return 1 month 1 year Yield
Feb 15 term notice month month month year Markit iTraxx 09/25 0.88 102.83 0.57 -0.03 0.05 -0.22 0.00
1 Up to 5 Years 99.32 -0.02 2395.73 0.52 2.09 0.58
Euro -0.35 -0.25 -0.35 -0.25 -0.37 -0.22 -0.30 -0.15 -0.21 -0.06 -0.11 0.04 Crossover 5Y 450.22 -14.07 -10.34 65.78 491.39 280.05 France 05/19 1.00 104.28 -0.30 0.00 0.00 0.00 0.00
2 5 - 10 Years 185.12 -0.12 3350.87 1.58 4.42 1.15
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.93 1.08 Europe 5Y 114.51 -3.97 -7.30 18.60 125.93 68.39 11/20 0.25 101.91 -0.15 0.00 0.00 0.00 0.00
3 10 - 15 Years 213.71 -0.21 3980.46 2.41 5.25 1.69
Swiss Franc - - - - - - - - - - - - Japan 5Y 106.06 -0.89 10.68 23.06 106.95 65.01 11/25 1.00 103.63 0.62 -0.05 0.02 -0.26 0.00
4 5 - 15 Years 191.92 -0.15 3503.43 1.82 4.63 1.37
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 121.55 -5.37 -15.07 34.54 140.51 65.28 05/45 3.25 137.87 1.62 -0.03 0.02 -0.29 0.00
5 Over 15 Years 313.92 -0.41 4576.58 3.65 6.12 2.17
US Dollar 0.32 0.42 0.32 0.42 0.35 0.45 0.50 0.60 0.80 0.90 1.10 1.20 Germany 04/19 0.50 103.10 -0.47 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 178.23 -0.21 3350.55 2.13 4.34 1.89
Japanese Yen -0.25 -0.05 -0.30 -0.10 -0.40 -0.20 -0.40 -0.20 -0.20 0.10 -0.10 0.20 10/20 0.25 102.90 -0.37 0.00 0.00 0.00 0.00
Emerging Markets 5Y 396.70 -17.22 18.91 -3.42 413.92 299.17 02/26 0.50 102.57 0.24 -0.02 0.02 -0.30 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 572.19 -17.50 22.34 17.70 589.69 416.39 08/46 2.50 141.60 0.93 0.00 0.02 -0.39 0.00
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Feb 15 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 121.83 -2.74 7.04 12.14 124.57 75.52 Greece 07/17 3.38 87.14 13.99 -0.47 1.11 3.51 0.00
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 309.18 0.04 0.31 -1.28 2372.00 0.31 0.15
02/26 3.00 55.74 11.08 -0.20 1.01 2.25 0.00 2 Over 5 years 590.29 0.07 3.00 6.18 4362.38 3.00 6.97
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 109.62 -0.25 0.00 0.00 0.00 0.00 3 5-15 years 435.03 0.08 1.33 0.41 3316.95 1.33 1.72
05/26 1.00 100.10 0.99 -0.07 0.00 0.00 0.00 4 Over 15 years 733.65 0.06 3.66 8.81 5317.31 3.66 9.39
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.38 0.16 -0.02 0.02 0.08 0.00 5 All stocks 543.98 0.06 2.61 5.34 4073.51 2.61 6.24
11/20 0.65 100.40 0.57 -0.02 -0.06 0.00 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 103.58 1.61 -0.03 -0.09 0.04 0.00 Yield Indices Feb 15 Feb 12 Yr ago Feb 15 Feb 12 Yr ago
Crude Oil† Feb 29.79 0.67 Corn♦ Mar 359.00 0.00 Dec 02 Dec 02 Prev return stock Market stocks
03/47 2.70 98.54 2.79 -0.07 -0.05 0.00 0.00 5 Yrs 0.76 0.75 1.12 20 Yrs 2.19 2.17 2.31
Brent Crude Oil‡ 33.35 0.39 Wheat♦ Mar 457.75 0.00 Can 4.25%' 21 127.46 -0.423 -0.475 0.40 5.18 71225.28 7
Japan 01/18 0.10 100.46 -0.14 0.00 0.00 0.00 0.00 10 Yrs 1.48 1.46 1.74 45 Yrs 2.16 2.13 2.41
RBOB Gasoline† Feb 1.04 0.00 Soybeans♦ Mar 872.75 0.00 Fr 2.25%' 20 113.09 -0.643 -0.680 -0.83 20.31 215398.05 14
02/21 0.05 100.89 -0.13 0.00 0.00 0.00 0.00 15 Yrs 1.96 1.94 2.11
Heating Oil† Feb 1.07 0.00 Soybeans Meal♦ Mar 262.20 0.00 Swe 0.25%' 22 109.41 -1.046 -1.066 0.63 32.27 227447.52 7
12/25 0.30 102.01 0.09 0.02 0.07 -0.11 0.00
Natural Gas† Feb 1.94 -0.03 Cocoa (ICE Liffe)X Mar 2037.00 -23.00 UK 2.5%' 20 359.60 -1.270 -1.381 -0.16 6.58 504203.06 25
12/45 1.40 105.16 1.17 0.02 0.10 -0.04 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2826.00 53.00 UK 2.5%' 24 341.63 -0.915 -1.019 0.20 6.82 504203.06 25
Netherlands 04/17 0.50 101.17 -0.50 0.00 0.00 0.00 0.00 Real yield Feb 15 Dur yrs Previous Yr ago Feb 15 Dur yrs Previous Yr ago
Uranium Feb 36.75 0.00 Coffee(Robusta)X Mar 1410.00 -9.00 UK 2%' 35 235.32 -0.869 -0.947 0.45 9.08 504203.06 25
07/25 0.25 98.78 0.38 -0.04 0.00 -0.28 0.00 Up to 5 yrs -0.98 2.25 -0.96 -1.01 -1.67 2.27 -1.66 -1.57
Carbon Emissions - - Coffee (Arabica)♥ Mar 116.10 2.65 US 0.625%' 21 102.43 0.174 0.155 -0.28 35.84 1127195.96 36
Diesel Mar - - White SugarX 380.00 1.50 New Zealand 03/19 5.00 107.34 2.51 0.05 0.01 -0.04 0.00 Over 5 yrs -0.93 23.58 -0.93 -0.65 -0.96 23.65 -0.95 -0.68
US 3.625%' 28 133.66 0.729 0.155 0.38 16.81 1127195.96 36
Unleaded (95R) - - Sugar 11♥ 13.16 0.10 04/27 4.50 113.62 3.05 0.06 0.02 -0.24 0.00 5-15 yrs -0.86 9.52 -0.85 -0.74 -0.95 9.52 -0.95 -0.85
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.65 0.57 0.04 0.01 -0.06 0.00 Over 15 yrs -0.94 29.15 -0.94 -0.64 -0.96 29.19 -0.95 -0.66
Base Metals (♠ LME 3 Months) Cotton♥ Mar 58.76 0.54 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 1.75 103.73 1.31 0.08 0.05 -0.04 0.00 All stocks -0.93 20.57 -0.93 -0.66 -0.97 20.70 -0.96 -0.69
Aluminium 1514.50 13.50 Orange Juice♥ Mar 130.45 0.00 amount.
Aluminium Alloy 1600.00 40.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 110.08 1.61 -0.19 0.50 0.86 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4568.00 77.00 Live Cattle♣ Feb 130.00 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 93.54 3.63 -0.19 0.37 0.64 0.00
Lead 1842.00 -8.00 Spain 04/18 0.25 100.24 0.14 -0.02 0.02 0.01 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Mar 150.45 0.10
Nickel 8255.00 505.00 Lean Hogs♣ Apr 70.28 0.00 Spread Spread Spread Spread 04/26 1.95 101.56 1.78 -0.03 -0.07 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 15370.00 20.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 100.04 0.99 0.00 -0.02 -0.23 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1692.00 -6.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 117.92 0.51 0.05 0.03 -0.27 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Feb 12 Month Year Australia 2.68 2.44 0.94 Italy 1.61 1.37 -0.14 Switzerland 05/19 3.00 112.99 -0.93 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1208.20 -31.55 S&P GSCI Spt 294.98 2.10 -27.36 Austria 0.59 0.35 -1.16 Japan 0.09 -0.15 -1.65 05/26 1.25 115.89 -0.27 0.00 0.00 0.00 0.00
Silver (US cents) 1526.00 -38.00 DJ UBS Spot 75.44 0.42 -25.77 Belgium 0.75 0.51 -0.99 Netherlands 0.38 0.14 -1.36 United Kingdom 07/18 1.25 101.87 0.47 -0.01 0.05 -0.13 0.00 Data provided by Morningstar | www.morningstar.co.uk
Platinum 938.00 -19.00 R/J CRB TR 160.90 -1.03 -29.01 Canada 1.25 1.01 -0.50 Norway 1.31 1.07 -0.43 01/21 1.50 103.04 0.87 0.01 0.02 -0.28 0.00
Palladium 516.00 -10.00 Rogers RICIX TR 1895.01 - - Denmark 0.55 0.31 -1.19 Portugal 3.63 3.39 1.89 07/26 1.50 98.85 1.63 0.00 0.00 0.00 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.57 0.33 -1.18 Spain 1.78 1.54 0.04 12/46 4.25 144.22 2.25 0.02 0.05 -0.20 0.00
Iron Ore (Platts) 46.30 3.40 UBS Bberg CMCI TR 11.35 1.35 -28.99 France 0.62 0.38 -1.13 Switzerland -0.27 -0.51 -2.02 United States 01/18 0.75 100.08 0.71 0.00 0.00 0.00 0.00
Iron Ore (The Steel Index) 45.60 2.40 LEBA EUA Carbon 5.96 -14.86 -14.98 Germany 0.24 0.00 -1.51 United Kingdom 1.63 1.39 -0.12 01/21 1.38 100.82 1.20 0.00 0.00 0.00 0.00
GlobalCOAL RB Index 52.75 0.25 LEBA CER Carbon 0.36 -12.20 -18.18 Greece 11.08 10.84 9.33 United States 1.75 1.51 0.00 11/25 2.25 104.50 1.75 0.00 0.00 0.00 0.00
Baltic Dry Index 295.00 4.00 LEBA UK Power 1630.00 -27.56 -47.06 Ireland 0.99 0.75 -0.76 11/45 3.00 108.45 2.59 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.
20 ★ FINANCIAL TIMES Tuesday 16 February 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

Atlantis China Healthcare Fund $ 1.73 - -0.01 0.00 Gbl Listed Infrastructure IX $ 9.5038 - -0.0021 - Invesco US Value Eq Fd A $ 27.21 - 1.18 0.00 Optimal Income Fund 135.28 139.47 0.38 2.87 Morant Wright Sakura Fund Sterling Acc Hedged £ 11.83 - 0.65 0.00

ACPI Global UCITS Funds Plc (IRL) Atlantis Japan Opportunities Fund $ 2.31 - 0.08 0.00 Gbl RealEstate Sec. I $ 9.7322 - -0.0295 2.17 Ennismore European Smlr Cos Hedge Fd Invesco USD Reserve A $ 87.02 - 0.00 0.00 Recovery Fund Limited 'A' Participating Shares 8747.78 9112.28 247.17 0.63 Morant Wright Sakura Fund Euro Acc Hedged € 11.82 - 0.64 0.00
www.acpishard.com Other International Funds
Regulated Atlantis Asian Fund $ 6.18 - 0.02 0.00 Gbl RealEstate Sec. IX $ 11.5874 - -0.0351 0.00 Recovery Fund Limited 'I' Participating Shares 8728.89 8817.06 249.21 1.58 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1213.94 - 66.69 0.00
NAV € 493.94 - -2.06 0.00
ACPI Emerging Mkts FI UCITS Fund USD A $ 102.80 - 0.05 0.00 Invesco Global Asset Management Ltd (IRL) Strategic Corporate Bond Fund 129.41 134.80 -0.25 3.13 Morant Wright Sakura Fund Dollar Acc Hedged $ 11.76 - 0.64 0.00
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
ACPI Global Credit UCITS Funds USD A $ 13.57 - -0.03 0.00
FCA Recognised UK Select 1355.84 1412.34 48.80 1.28 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.71 - 0.64 0.00
Equinox Fund Mgmt (Guernsey) Limited (GSY)
ACPI Global Fixed Income UCITS Fund USD A $ 151.49

Q ACPI India Fixed Income UCITS Fund USD A $ 9.69

-

-
-0.50 0.00

0.01 -
AXIOM
ALTERNATIVE INVESTMENTS
Regulated
Equinox Russian Opportunities Fund Limited $ 110.67 - -9.01 0.00
Hermes Investment Funds Plc

FCA Recognised
(IRL)
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Invesco Stlg Bd A QD F

Invesco Asian Equity A

£

$
2.53

5.45
-

-
0.00 3.35

0.14 0.58 MFS Investment Funds (LUX)

Hermes Abs Return Credit Fund Class F Acc £ £ 1.04 1.04 -0.01 - FCA Recognised
ACPI India Fixed Income UCITS Fund USD A3 $ 82.87 - 0.14 0.00 Invesco ASEAN Equity A $ 87.34 - 0.84 0.30
Euronova Asset Management UK LLP (CYM) Blend.Research Gb.Eq.Fd. € 88.14 - 2.48 -
ACPI International Bond UCITS Fund USD A $ 18.28 - -0.08 0.00 Axiom Alternative Investments (FRA) Crèdit Andorrà Asset Management (LUX) Hermes Abs Return Credit Fund Class R Acc € € 1.92 1.92 0.02 - Invesco Bond A $ 26.71 - -0.07 1.99
Regulated
1 Conduit Street - 4th floor - London W1S 2XA www.creditandorra.com Blend.Research Gb.Eq.Fd. £ 92.10 - 1.68 -
Smaller Cos Cls One Shares (Est) € 33.59 - -0.97 0.00 Hermes Active UK Inflation Fund Class F Acc £ 1.33 1.33 -0.01 0.00 Invesco Continental Eurp Small Cap Eqty A $ 177.27 - 4.66 0.00
www.axiom-ai.com Tel: +44 330 822 0374 FCA Recognised
Regulated Blend.Research U.S.Core Eq.Fd. ¥ 8689.00 - 241.00 -
ACPI Select UCITS Funds PLC (IRL) Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00 Smaller Cos Cls Two Shares (Est) € 23.57 - -0.62 0.00 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.47 1.47 0.05 0.00 Invesco Emerging Markets Equity A $ 31.11 - 0.60 0.00 Morgan Stanley Investment Funds (LUX)
Regulated Axiom Contingent Capital € 896.40 - 5.42 - Blend.Research Gb.Eq.Fd. $ 87.49 - 1.71 - 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Crediinvest SICAV Money Market Usd A $ 10.04 - 0.00 0.00 Smaller Cos Cls Three Shares (Est) € 11.69 - -0.38 0.00 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.02 3.02 0.12 0.00 Invesco Emerging Markets Bond A $ 20.11 - -0.01 4.72
ACPI Balanced UCITS Fund USD Retail $ 12.90 - -0.07 0.00 www.morganstanleyinvestmentfunds.com
Axiom Contingent Capital £ 899.55 - 5.68 - Em.Mk.Eq.Fund Euro € 94.52 - 1.51 0.00 FCA Recognised
Crediinvest SICAV Fixed Income Eur € 10.28 - -0.01 0.00 Smaller Cos Cls Four Shares (Est) € 15.21 - -0.45 0.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.10 1.10 0.03 0.00 Invesco Continental European Equity A € 7.34 - 0.31 0.22
ACPI Balanced UCITS Fund EUR Retail € 9.71 - -0.06 0.00 Axiom Equity $ 665.20 - 32.24 - Em.Mk.Eq.Fund Sterling £ 86.44 - 0.51 0.00 US Advantage A F $ 50.94 - 0.46 0.00
Crediinvest SICAV Fixed Income Usd $ 10.27 - -0.01 0.00 Hermes Global Emerging Markets Fund Class R Acc € 2.63 2.63 0.07 0.00 Invesco Gilt A £ 15.46 - -0.13 1.33
ACPI Balanced UCITS Fund GBP Retail £ 9.83 - -0.06 0.00 Axiom Equity € 699.83 - 34.07 0.00 Asian Equity A F $ 35.86 - -0.37 0.00
Em.Mk.Eq.Fd.US Dollar $ 81.17 - 0.59 0.00
Crediinvest SICAV Spanish Value € 211.95 - 5.58 0.00 Hermes Global Equity Fund Class F Acc £ 1.42 1.42 0.05 0.00 Invesco Global Small Cap Equity A NAV $ 105.48 - 2.74 0.00
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Axiom Obligataire $ 1594.48 - 5.41 0.00 Asian Property A F $ 15.60 - -0.19 0.00
Gb.Conc.Eq.Fd.Euro € 251.58 - 5.17 0.00
Crediinvest SICAV International Value € 194.12 - 7.63 0.00 Hermes Global Equity Fund Class R Acc € 3.51 3.51 0.13 0.00 Invesco Global High Income A NAV $ 11.31 - 0.05 6.17
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - -
Asset Management
Axiom Obligataire € 1596.95 - 5.13 0.00 Gb.Conc.Eq.Fd.Sterl.UK T £ 163.74 - 1.72 0.00 Asian Property AX F £ 10.78 - -0.01 0.54
Crediinvest SICAV Big Cap Value € 13.52 - 0.52 0.00 Hermes Global ESG Equity Fund Class F Acc £ 1.10 1.10 0.04 0.00
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Axiom Obligataire £ 1607.03 - 5.47 0.00
Crediinvest SICAV US American Value $ 16.71 - 0.34 0.00 Hermes Global High Yield Bond Fund Class F Acc £ 1.06 1.06 -0.01 0.00 Invesco Global Health Care A
Asset Management
Invesco Gbl R/Est Secs A GBP F F £ 7.42

$ 108.22
-

-
0.19 0.90

2.37 0.00
Gb.Conc.Eq.Fd.Sterling £ 247.75 - 2.61 0.00 Diversified Alpha Plus A F Asset Management€ 29.29 - 0.01 0.00
ACPI Horizon UCITS Fund $ 11.96 - -0.01 0.00 Emerg Europ, Mid-East & Africa Eq A F € 57.63 - 0.41 0.00
Gb.Conc.Eq.Fd.US $ 179.10 - 2.12 0.00
Crediinvest SICAV Sustainability € 13.24 - -0.22 0.00 Eurobank Fund Management Company (Luxembourg) S.A. Hermes Global High Yield Bond Fund Class R Acc € 2.59 2.59 0.01 0.00 Invesco Global Select Equity A $ 11.27 - 0.41 0.00
BLME Asset Management (LUX) Regulated
Gb.Eq.Hdg Fd.Euro IRE T € 165.72 - 2.88 0.00 Emerging Markets Debt A F $ 72.19 - -0.28 0.00
BLME Sharia'a Umbrella Fund SICAV SIF (LF) Absolute Return € 1.28 - 0.01 0.00 Hermes Global Small Cap Fund Class F Acc £ £ 0.92 0.92 0.03 - Invesco Jap Eqty Core A $ 1.68 - 0.10 0.00
Regulated Gb.Eq.Euro Hdg Fd. € 234.79 - 4.08 0.00 Emerging Markets Domestic Debt AX F £ 10.44 - -0.07 5.35
DAVIS Funds SICAV (LUX) Hermes Global Small Cap Fund Class R Acc € € 1.71 1.71 0.06 -
Income Fund - Share Class A Acc $ 1137.58 - 0.04 0.00 (LF) Eq Emerging Europe € 0.61 - 0.01 0.00 Invesco Japanese Equity A $ 16.84 - 1.00 0.00
Regulated Gb.Eq.Fund Euro € 252.40 - 5.87 0.00 Emerging Markets Equity A F $ 29.01 - -0.21 0.00
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.95 0.95 0.01 0.00 Invesco Korean Equity A $ 31.16 - 0.60 0.00
Income Fund - Share Class G Acc £ 1079.26 - 0.01 0.00 Davis Value A $ 34.77 - 0.87 0.00
Gb.Eq. Fd Euro IRE T € 159.73 - 3.71 0.00 Euro Bond A F € 15.89 - 0.00 0.00
Davis Global A $ 24.54 - 0.78 0.00 (LF) Eq Mena Fund € 11.66 - 0.10 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 0.99 0.99 0.00 0.00 Invesco PRC Equity A $ 42.47 - 1.71 0.00
Gl Sukuk Fund - Share Class A Acc $ 1212.43 - 0.79 0.00
Gb.Eq.Fd.Sterling UK T £ 198.66 - 2.64 0.00 Euro Corporate Bond AX F £ 22.46 - -0.22 1.55
Algebris Investments (IRL) (LF) Greek Government Bond € 15.07 - 0.09 - Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.22 1.22 0.04 0.00 Invesco Pacific Equity A $ 41.85 - 1.69 0.08
Gl Sukuk Fund - Share class B Acc £ 1082.40 1082.40 0.57 0.00
Regulated Gb.Eq.Fd.US Dollar $ 283.68 - 4.15 0.00 Euro Strategic Bond A F € 43.02 - -0.03 0.00
(LF) Greek Corporate Bond € 11.08 - 0.04 - Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.18 1.18 0.04 1.35 Invesco Global Technology A $ 13.39 - 0.30 0.00
Algebris Financial Credit Fund - Class I EUR € 120.85 - 0.96 0.00 Gb.Eq.Fund Sterling £ 196.28 - 2.61 0.00 European Currencies High Yield Bd A F € 20.34 - -0.10 0.00
Hermes Sourcecap EU Alpha Fund Class R Acc € 2.79 2.79 0.11 0.00
Algebris Financial Income Fund - Class I EUR € 99.83 - 2.15 0.00 Bank of America Cap Mgmt (Ireland) Ltd (IRL) (LF) FOF Dynamic Fixed Inc € 11.29 - 0.03 0.00 Invesco UK Eqty A £ 7.06 - 0.20 1.48
Regulated Gb.Val.Ex-Jap.Fd.USD $ 109.26 - 1.91 0.00 European Equity Alpha A F € 36.21 - 0.14 0.00
(LF) FOF Real Estate € 14.72 - 0.18 0.00 Hermes Sourcecap EX UK Fund Class F Acc £ 1.29 1.29 0.04 0.00
Algebris Financial Equity Fund - Class B EUR € 77.82 - 4.48 - Global Liquidity USD $ 1.00 - 0.00 0.52 Gb.Val.Ex-Japan Fd.Yen ¥ 12113.00 - 303.00 0.00 European Property A F € 30.62 - -0.13 0.00
Hermes Sourcecap EX UK Fund Class R Acc € 2.87 2.87 0.11 0.00 Invest AD
Algebris Asset Allocation Fund - Class B EUR € 90.96 - 1.13 - Client services: +971 2 692 6101 clientservices@InvestAD.com Gb.Val.Fd. Euro € 120.29 - 2.86 0.00 Eurozone Equity Alpha A F € 9.60 - -0.03 0.00
Dodge & Cox Worldwide Funds (IRL) FIL Fund Management (LUX) Hermes UK Small & Mid Cap Fund Class F Acc £ 1.52 1.52 0.03 0.00
Other International Funds
Barclays Investment Funds (CI) Ltd (JER) 6 Duke Street,St.James,London SW1Y 6BN 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Gb.Val.Fd.Sterling £ 113.94 - 1.58 0.00 Global Bond A F $ 38.30 - -0.24 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 www.dodgeandcox.worldwide.com 020 3713 7664 Phone: 800 22 089, 800 22 088 Hermes UK Small & Mid Cap Fund Class R Acc € 4.30 4.30 0.08 0.00 Invest AD - Iraq Opportunity Fund $ 55.53 - -0.10 0.00
Amundi Funds (LUX)
FCA Recognised FCA Recognised Regulated Gb.Val.Fd.USD $ 97.49 - 1.47 0.00 Global Brands A F $ 92.31 - 0.51 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Hermes US All Cap Equity Class F Stg £ Acc £ 0.93 0.93 0.03 -
Bond Funds Dodge & Cox Worldwide Funds plc - Global Bond Fund Invest AD - Emerging Africa Fund $ 868.55 - -4.19 0.00
www.amundi-funds.com China Consumer A-GBP £ 12.62 - 0.18 0.00 Low Volatility Gb.Eq.Fd.Euro € 96.43 - 1.96 - Global Convertible Bond A F $ 38.55 - -0.20 0.00
FCA Recognised Sterling Bond F £ 0.46 - 0.00 3.28 EUR Accumulating Class € 10.91 - 0.09 0.00 Hermes US All Cap Equity Class R € Acc € 1.72 1.72 0.05 - Invest AD - GCC Focus Fund $ 1236.59 - -0.09 0.00
China Focus A-GBP £ 3.62 - 0.04 0.77 Low Volatility Gb.Eq.Fd.Sterl £ 100.76 - 1.04 - Global Property A F $ 24.77 - -0.08 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.06 - -0.05 0.00
EUR Accumulating Class (H) € 8.77 - 0.02 0.00 Hermes US SMID Equity Fund Class F Acc £ 1.52 1.52 0.05 0.00
Global Financial Services A-GBP £ 0.39 - 0.01 0.12 Low Volatility Gb.Eq.Fd.USD $ 95.71 - 1.11 - Indian Equity A F $ 29.63 - -0.15 0.00
Bd. Global AU Class - R - USD $ 25.29 - -0.02 0.00 Barings (Luxembourg) (LUX)
EUR Distributing Class € 10.33 - 0.08 3.66 Hermes US SMID Equity Fund Class R Acc € 3.06 3.06 0.10 0.00
FCA Recognised Global Health Care A-GBP £ 0.51 - 0.00 0.00 Low Volatility Gb.Eq.Fd.Yen ¥ 8417.00 - 162.00 - Latin American Equity A F $ 32.89 - 0.22 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00
Russia A GBP Inc F £ 22.40 - 0.37 0.00 EUR Distributing Class (H) € 8.30 - 0.02 3.76
Global Industrials A-GBP £ 0.59 - 0.01 0.00 Short Maturity Euro Bond A F € 20.27 - 0.00 0.00
Eq. Emerging World AU Class - R - USD $ 71.33 - -0.01 0.00 INDIA VALUE INVESTMENTS LIMITED (INVIL)
GBP Distributing Class £ 9.75 - -0.01 3.50
Global Inflation-Linked Bd A-GBP-Hdg £ 1.14 - 0.00 0.56 www.invil.mu MMIP Investment Management Limited (GSY) US Dollar Liquidity A F $ 13.03 - 0.00 0.00
Eq. Greater China AU Class - R - USD $ 475.99 - -2.23 0.00
BlackRock (JER) GBP Distributing Class (H) £ 8.38 - 0.01 3.76 Other International Funds Regulated
Regulated Global Real Asset Securities £ 1.27 - 0.03 0.00 Multi-Manager Investment Programmes PCC Limited US Growth A F $ 55.79 - 0.32 0.00
Eq. Latin America AU Class - R - USD $ 281.81 - 2.39 0.00 NAV £ 8.07 - -0.05 0.00 GAM
USD Accumulating Class $ 8.86 - 0.02 0.00
BlackRock UK Property £ 41.71 - 0.04 3.23 Global Technology A-GBP £ 0.24 - 0.01 0.00 funds@gam.com, www.jbfundnet.com European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 97.86 - 0.05 0.00 US Growth AH F € 38.64 - 0.22 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund Regulated
Blackrock UK Long Lease £ 1079.94 - -0.01 0.00 Global Telecomms A-GBP £ 0.28 - 0.01 1.13 Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 US Growth AX F £ 38.59 - 0.17 0.00
USD Accumulating Share Class $ 13.33 - 0.31 0.00 Intercapital Asset Management Ltd (HRV) Ms EF Special Val. EUR/A € 126.44 - 2.44 1.17
BLK Intl Gold & General $ 4.85 5.11 0.02 0.00 India Focus A-GBP £ 3.87 - 0.02 0.00 Masarykova ul. 1, 10000, Zagreb, Croatia MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00
The Antares European Fund Limited GBP Accumulating Share Class £ 15.11 - 0.31 0.00 Strategy Balanced-CHF/B SFr 141.67 - 0.96 0.00 US Property A F $ 62.65 - 0.65 0.00
www.icam.hr, Tel; +385 1 4825 868
Other International
Latin America A-GBP £ 1.25 - 0.02 0.67 Other International Funds Strategy Balanced-EUR € 146.02 - 1.20 0.00 Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00
GBP Distributing Share class £ 10.99 - 0.23 1.03
AEF Ltd Usd (Est) $ 615.94 - -18.97 -
BONHOTE Sterling Cash Fund A-ACC-GBP £ 1.00 - 0.00 0.00 Capital One Bond Fund (Ex-YU) HRK 204.98 - 0.01 - UK Equity Fd Cl A Series 01 £ 2318.62 2346.23 -38.83 0.00 Morgens Waterfall Vintiadis.co Inc
EUR Accumulating Share Class € 17.78 - 0.52 0.00 Strategy Balanced-USD/B $ 123.15 - 0.76 0.00
AEF Ltd Eur (Est) € 617.96 - -18.48 0.00 Other International Funds Other International Funds
Capital Two Equity Fund (Ex-YU) HRK 87.12 - -0.20 - Diversified Absolute Rtn Fd USD Cl AF2 $ 1589.77 - 3.37 0.00
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6607.00 - -42.00 2.29 Dodge & Cox Worldwide Funds plc-International Stock Fund Strategy Growth-CHF/B SFr 85.46 - 1.02 0.00
Phaeton Intl (BVI) Ltd (Est) $ 366.51 - -13.82 0.00
USD Accumulating Share Class $ 11.08 - 0.26 0.00 Findlay Park Funds Plc (IRL) Diversified Absolute Return Stlg Cell AF2 £ 1610.37 - 2.62 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9749.00 - -171.00 0.93 Strategy Growth-EUR € 106.54 - 1.43 0.00
Arisaig Partners 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
EUR Accumulating Share Class € 11.59 - 0.34 0.00
Intrinsic Value Investors (IVI) LLP (IRL)
Other International Funds FCA Recognised Strategy Inc-CHF/B SFr 115.55 - 0.34 0.00
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Arisaig Africa Consumer Fund Limited $ 12.82 - 0.00 0.00 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund American Fund USD Class $ 73.73 - -0.64 0.00 FCA Recognised LNG Capital (CYM)
Braemar Group PCC Limited (GSY) Strategy Inc-EUR/B € 154.43 - 0.64 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
Regulated USD Accumulating Share Class $ 15.71 - 0.35 0.00 American Fund GBP Hedged £ 40.17 - -0.34 0.00 IVI European Fund EUR € 15.98 - 0.43 0.00
Arisaig Asia Consumer Fund Limited $ 57.34 - -0.36 0.00 www.lngcapital.com, Tel: 0207 839 3456
Strategy Inc-USD/B $ 142.74 - 0.32 0.00
UK Agricultural Class A £ 1.25 - 0.00 0.00 IVI European Fund GBP £ 16.71 - 0.25 0.68 Regulated
GBP Accumulating Share Class £ 16.85 - 0.34 0.00 American Fund GBP Unhedged £ 50.82 - -0.74 -
Arisaig Global Emerging Markets Consumer UCITS € 10.55 - 0.09 0.00
UK Agricultural Class B £ 1.37 - 0.00 0.00 LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
GBP Distributing Share Class £ 10.71 - 0.21 0.63 Latin American Fund USD Class $ 10.11 - -0.17 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.48 - -0.01 0.00 Natixis International Funds (Lux) I SICAV (LUX)
Student Accom Class B £ 0.55 - -0.17 0.00 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
EUR Accumulating Share Class € 18.11 - 0.52 0.00 Latin American Fund GBP Unhedged £ 7.07 - -0.16 -
Arisaig Latin America Consumer Fund $ 18.71 - 0.05 0.00
FCA Recognised
LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
Harris Global Equity R/A (USD) $ 210.26 210.26 3.39 0.00
CG Asset Management Limited (IRL)
Artisan Partners Global Funds PLC (IRL) Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland
Foord Asset Management
Harris US Equity Fund R/A (USD) $ 182.97 182.97 5.44 0.00
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland 00 353 1 434 5098 Other International Funds Marlborough International Management Limited (GSY)
Tel: 44 (0) 207 766 7130 FCA Recognised Foord International Trust $ 32.04 - 0.17 0.00
Kames Capital VCIC (IRL) Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 Harris Concentrated US Equity R/A (USD) $ 137.24 137.24 4.33 0.00
FCA Recognised Invesco (LUX) 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 FCA Recognised
Capital Gearing Portfolio Fund Plc £ 27054.11 27054.11 -125.18 0.61 Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 FCA Recognised Loomis Sayles Strategic Alpha R/A (USD) $ 105.76 105.76 0.07 -
Artisan Partners Global Funds plc Foord Global Equity Fund_Class B $ 10.79 - 0.10 0.00 Marlborough North American Fund Ltd £ 29.93 31.89 -0.56 0.00
CG Portfolio Fund Plc FCA Recognised
Artisan Emerging Markets I USD Acc $ 6.04 - 0.04 0.00 Absolute Return Bond B GBP Acc 1075.02 - 0.53 1.26
Invesco Management SA Marlborough Tiger Fund Ltd F £ 23.82 25.39 0.60 0.00
Real Return Cls A £ 175.23 175.23 0.58 1.66 Dragon Capital Group
Eq Market Neutral B Acc 1016.26 - -0.13 - Natixis International Funds (Dublin) I plc (IRL)
Artisan Global Equity Fund Class I USD Acc $ 12.61 - 0.23 0.00 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Franklin Templeton International Services Sarl (IRL) Invesco Active Multi-Sector Credit Fund A € 2.78 - 0.00 0.00
Dollar Fund Cls D £ 136.11 136.11 0.26 1.54 Fund information, dealing and administration: funds@dragoncapital.com JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Artisan Global Opportunities I USD Acc $ 10.65 - 0.06 0.00 Invesco Asia Balanced A dist $ 13.30 - 0.11 3.95 Eq Market Neutral Plus B Acc 1021.76 - -1.01 -
Other International Funds Other International Funds Marwyn Asset Management Limited (CYM) Regulated
Capital Value Fund Cls V £ 131.11 131.11 -0.58 0.26 Regulated
Franklin Emerging Market Debt Opportunities Fund Plc High Yield Global Bond A GBP Inc 489.45 - 2.04 5.75 Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.43 12.43 0.06 1.26
Artisan Global Value Fund Class I USD Acc $ 14.35 - 0.31 0.00 Vietnam Property Fund (VPF) NAV $ 0.92 - 0.00 0.00 Invesco Asia Consumer Demand Fund A income $ 11.19 - 0.26 0.26
Franklin Emg Mkts Debt Opp CHFSFr 16.44 - -0.39 8.50 Marwyn Value Investors £ 440.64 - -10.28 0.00
Artisan US Value Equity Fund Class I USD Acc $ 9.58 - 0.15 0.00 Invesco Asia Infrastructure (A) $ 11.36 - 0.31 0.85 High Yield Global Bond B GBP Inc 1017.75 - 4.29 5.75 Loomis Sayles High Income R/D (USD) $ 6.92 6.92 -0.05 12.94
Vietnam Enterprise Inv. (VEIL) NAV $ 3.45 - 0.04 0.00
Cedar Rock Capital Limited (IRL)
Franklin Emg Mkts Debt Opp EUR € 11.55 - -0.30 7.58
Regulated Invesco Asia Opportunities Equity A $ 91.81 - 2.25 0.00 Investment Grade Global Bd A GBP Inc 543.56 - -1.97 2.63 Loomis Sayles Multisector Income R/D (GBP) $ 10.98 10.98 -0.07 5.96
Meridian Fund Managers Ltd
Cedar Rock Capital Fd Plc $ 356.72 - 11.39 0.00 Franklin Emg Mkts Debt Opp GBP £ 9.76 - -0.19 7.26
Ashmore Sicav (LUX) DSM Capital Partners Funds (LUX) Invesco Balanced Risk Allocation Fund A € 14.28 - 0.08 0.00 Kames Global Equity Income B GBP Acc 1138.21 - 30.31 - Other International Funds
2 rue Albert Borschette L-1246 Luxembourg www.dsmsicav.com
Cedar Rock Capital Fd Plc £ 394.82 - 18.15 0.00 Franklin Emg Mkts Debt Opp SGD S$ 21.34 - -0.51 6.48 Kames Global Equity Income B GBP Inc 1078.51 - 28.74 - Global Gold & Resources Fund $ 184.00 - 2.35 -
FCA Recognised Regulated Invesco Emerging Europe Equity Fund A $ 6.85 - 0.10 0.00
Ashmore SICAV Emerging Market Debt Fund $ 85.50 - -0.15 9.10 Cedar Rock Capital Fd Plc € 343.20 - 11.54 0.00 Global Growth I2 Acc € 115.78 - 2.71 0.00 Franklin Emg Mkts Debt Opp USD $ 16.29 - -0.42 7.37 Strategic Global Bond A GBP Inc 1062.35 - 0.83 0.87 Global Energy & Resources Fund $ 31.18 - -3.49 -
Invesco Emerging Local Currencies Debt A Inc $ 6.52 - 0.03 7.14
Ashmore SICAV Emerging Market Frontier Equity Fund $ 132.69 - 0.30 0.76 Global Growth I1 Eur € 86.57 - 2.03 - Strategic Global Bond B GBP Inc 602.72 - 0.52 1.37
Invesco Emerging Mkt Quant.Eq. A $ 8.22 - 0.17 0.00
Charles Schwab Worldwide Funds Plc (IRL) Frontier Capital (Bermuda) Limited Mirabaud Asset Management (LUX)
Ashmore SICAV Emerging Market Total Return Fund $ 73.96 - -0.21 6.57
Regulated Other International Invesco Energy A $ 14.25 - 0.64 0.00
www.mirabaud.com, marketing@mirabaud.com
Ashmore SICAV Global Small Cap Equity Fund $ 110.29 - 0.19 0.00 Edinburgh Partners Limited (IRL) Lloyds Investment Fund Managers Limited (1000)F (JER) New Capital Fund Management Ltd (IRL)
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Commercial Property-GBP Class £ 71.42 - -0.53 - Invesco Euro Corporate Bond Fund (A) € 16.53 - 0.00 0.00 Regulated
27-31 Melville Street, Edinburgh EH3 7JF PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Leconfield House, Curzon Street, London, W1J 5JB
Ashmore SICAV Local Currency Fund $ 79.62 - -0.23 0.00 Mir. Conv. Bds Eur A EUR € 126.61 - 0.64 0.00 FCA Recognised
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Global Real Estate-GBP C Class £ 45.26 - -0.50 - Invesco Euro Inflation Linked Bond A € 15.46 - 0.08 0.00 Other International Funds
FCA Recognised New Capital UCITS Funds
Lloydstrust Gilt £ 12.5000xd - -0.1000 2.23 Mir. Conv. Bds Glb A USD $ 105.10 - 0.50 0.00
EM Mkts Corp.Debt USD F $ 79.23 - -0.28 9.89 Chartered Asset Management Pte Ltd Edinburgh Partners Opportunities Fund PLC Invesco Euro Reserve A € 322.61 - -0.01 0.00 Asia Pac Bd USD Inst Inc $ 91.20 - 0.18 3.43
Other International Funds Lloyds Investment Funds Limited Mir. - Eq Asia ex Jap A $ 153.89 - 4.22 0.00
EM Mkts Loc.Ccy Bd USD F $ 74.20 - -0.24 3.75 Emerging Opportunities I USD $ $ 0.94 - 0.00 0.93 GYS Investment Management Ltd (GSY) Invesco Euro Bond A € 7.02 - 0.02 0.00
CAM-GTF Limited $ 268271.12 268271.12 2763.61 0.00 Euro High Income € 1.5860xd - -0.0010 2.99 Asia Pac Bd USD Ord Inc $ 93.17 - 0.19 2.69
Regulated
Mir.- EqEurope ExUK Sm&Mid £ 97.29 - 0.01 -
European Opportunities I EUR € 2.04 - 0.05 2.53 Invesco European Growth Equity A € 22.40 - 0.64 0.00
CAM GTi Limited $ 605.58 - -7.40 0.00 Taurus Emerging Fund Ltd $ 174.94 178.51 12.10 0.00 European £ 7.0950 - 0.1970 1.35 Asia Pac Eq EUR Ord Inc € 74.49 - -1.71 3.52
Mir. - Eq Glb Emrg Mkt A USD $ 78.53 - 1.93 0.00
European Opportunities I GBP £ 1.58 - 0.02 2.61 Invesco Global Absolute Return Fund A Class € 11.69 - 0.00 0.00
Raffles-Asia Investment Company $ 1.49 1.49 -0.07 - High Income £ 0.8377xd - -0.0041 5.11 Asia Pac Eq GBP Ord Inc £ 77.05 - -1.76 4.14
Mir. - Eq Global Focus A USD $ 88.80 - 0.78 0.00
European Opportunities I USD $ 2.31 - 0.04 2.30 Generali Worldwide Invesco Global Bond A Inc $ 5.41 - 0.01 0.76
International £ 3.7960 - 0.1070 1.12 Asia Pac Eq USD Ord Inc $ 77.96 - -1.78 3.52
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Mir. -Eq Spain A € 21.25 - 0.37 0.00
European Opportunities A EUR € 1.99 - 0.05 1.77 Invesco Global Conservative Fund 90 (EUR) A € 11.76 - 0.00 0.00
International Insurances North American £ 14.7100 - 0.3900 0.23 Asia Pac Eq USD Inst Acc $ 83.94 - -1.91 0.00
Mir. - Eq Swiss Sm/Mid A SFr 299.02 - 4.31 0.00
Global Opportunities I USD $ 1.40 - 0.00 2.29 Invesco Global Equity Income Fund A $ 53.64 - 1.69 0.00
Global Multi-Strategy Managed $ 4.35 4.68 -0.09 0.00 Asia Pac Eq USD Inst Inc $ 88.91 - 0.33 4.28
Aspect Capital Ltd (UK) Sterling Bond £ 1.4240xd - -0.0080 3.77
Mir. - Glb High Yield Bds A $ 101.99 - 0.18 -
Global Opportunities I GBP £ 0.97 - 0.00 2.00 Invesco Global Inc Real Estate Sec A dist $ 8.80 - 0.11 2.31
Other International Funds UK Multi-Strategy Managed £ 4.46 4.81 -0.15 0.00 Dyn Europ Eq EUR Ord Inc € 156.07 - 3.36 0.72
UK £ 5.9920 - 0.1760 1.64
Mir. - Glb Eq High Income A USD $ 89.47 - 0.57 0.00
Aspect Diversified USD $ 453.91 - 6.40 0.00 Global Opportunities A GBP £ 0.91 - 0.00 1.52 Invesco Global Inv Grd Corp Bond A Dist $ 11.59 - -0.01 3.04
EU Multi-Strategy Managed € 2.77 2.99 -0.12 0.00 Lloyds Gilt Fund Limited Dyn Europ Eq GBP Ord Inc £ 165.37 - 3.58 1.08
Mir. - Glb Inv Grade Bds A € 99.11 - -0.24 -
Aspect Diversified EUR € 272.30 - 3.73 - Cheyne Capital Management (UK) LLP (IRL) Pan European Opportunities I EUR € 1.26 - 0.04 - Invesco Global Leisure A $ 32.09 - 0.75 0.00 Lloyds Gilt Fund Quarterly Share £ 1.3030xd - -0.0100 1.77
Global Bond USD $ 3.41 3.67 -0.01 0.00 Dyn Europ Eq USD Ord Inc $ 155.69 - 3.36 0.71
Regulated Mir. - Glb Strat. Bd A USD $ 100.85 - -0.04 0.00
Aspect Diversified GBP £ 139.71 - 2.00 0.00 Invesco Global Smaller Comp Eq Fd A $ 50.35 - 1.62 0.00 Monthly Share £ 1.2530xd - -0.0100 1.77 China Equity EUR Ord Acc € 111.57 - 0.01 0.00
Cheyne Convertibles Absolute Return Fund € 1286.37 - 1.86 0.00
Mir. - US Shrt Term Credit Fd $ 98.93 - -0.05 -
Aspect Diversified CHF SFr 129.97 - 1.74 0.00 Genesis Asset Managers LLP Invesco Global Structured Equity A $ 42.80 - 1.23 0.80 Lloyds Money Fund Limited
China Equity GBP Ord Acc £ 116.00 - 0.03 0.00
Cheyne Global Credit Fund € 110.82 - 0.34 0.00
Other International Funds Sterling Class £ 52.6250 - 0.0010 0.10
Aspect Diversified Trends USD $ 136.33 - 1.83 0.00 Invesco Global Total Ret.(EUR) Bond Fund A € 12.50 - 0.02 0.00 China Equity USD Ord Acc $ 113.59 - 0.02 0.00
Cheyne European Mid Cap Fund € 1092.62 - -16.80 0.00 Emerging Mkts NAV £ 4.83 - 0.02 0.00 MW Japan Fund Plc (IRL)
Lloyds Multi Strategy Fund Limited
Aspect Diversified Trends EUR € 136.29 - 1.77 0.00 Invesco Gold & Precious Metals A $ 4.20 - 0.07 0.00 FCA Recognised China Equity USD Inst Acc $ 116.95 - 0.02 0.00
Conservative Strategy £ 1.0730 - -0.0040 1.97
Aspect Diversified Trends GBP £ 141.76 - 1.92 0.00 Invesco Greater China Equity A $ 38.33 - 0.86 0.00 MW Japan Fund PLC A $ 22.75 - 0.98 -
Cheyne Capital Management (UK) LLP HPB Assurance Ltd Growth Strategy £ 1.3850 - 0.0080 1.32
Europ. Equity Fd EUR € 93.06 - 2.01 -
Other International Funds
EFG Hermes Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 MW Japan Fund PLC B $ 22.92 - 0.99 -
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Invesco India Equity A $ 46.18 - 1.29 0.00 Europ. Equity Fd GBP £ 91.65 - 1.98 -
International Insurances Aggressive Strategy £ 1.6420 - 0.0200 0.00
Atlantas Sicav (LUX) Cheyne European Event Driven Fund € 134.54 - -11.29 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com MW Japan Fund PLC C $ 82.65 - 4.54 -
Invesco Japanese Equity Adv Fd A ¥ 3304.00 - 236.00 0.00 Europ. Equity Fd USD $ 91.87 - 1.99 -
Regulated Other International Funds Holiday Property Bond Ser 1 £ 0.49 - -0.01 0.00 Global USD Growth Strategy $ 1.2130 - 0.0100 0.00
Cheyne Real Estate Credit Holdings Fund £ 163.55 - 0.68 0.00
American Dynamic $ 2983.34 - -204.69 0.00 The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Invesco Japanese Value Eq Fd A ¥ 1074.00 - 78.00 0.00 Dealing Daily Global Val.Cr.Fd GBP Ord Inc £ 105.08 - -0.56 3.70
Holiday Property Bond Ser 2 £ 0.59 - -0.01 0.00
Cheyne Real Estate Credit Holdings Fund III £ 112.40 - 0.42 0.00 Morant Wright Funds (Ireland) PLC (IRL)
American One $ 2863.19 - -160.57 0.00 EFG-Hermes Frontier Equity UCITS Fund Class I $ 987.21 - 0.82 - Invesco Latin American Equity A $ 5.10 - 0.07 0.00 Global Val.Cr.Fd USD Inst Acc $ 119.06 - -0.09 0.00
FCA Recognised
Cheyne Real Estate Debt Fund Class A1 £ 131.50 - -0.63 0.00 M & G (Guernsey) Ltd (GSY)
Bond Global € 1368.90 - -25.95 0.00 EFG-Hermes MENA Equity UCITS Fund Class A $ 935.07 - 5.31 - Haussmann Invesco Nippon Small/Mid Cap Equity A ¥ 878.00 - 37.00 0.00 Morant Wright Fuji Yield EUR Dist Hedged € 9.25 - 0.40 2.25 Global Val.Cr.Fd GBP Ord Acc £ 170.56 - -0.89 0.00
Regulated
Cheyne Total Return Credit Fund - December 2017 Class $ 135.85 - -17.03 0.00 Other International Funds
Eurocroissance € 788.94 - -63.58 0.00 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Invesco Pan European Equity A EUR Cap NAV € 16.13 - 0.64 0.00 The M&G Offshore Fund Range Morant Wright Fuji Yield GBP Acc Hedged £ 9.57 - 0.41 0.00 Global Val.Cr.Fd USD Ord Acc $ 160.15 - -0.84 0.00
Cheyne Total Return Credit Fund 2020 $ 100.78 - -2.61 - Haussmann Cls A $ 2547.18 - -27.44 0.00
Invesco Pan European High Income Fd A € 12.86 - 0.12 2.55 Corporate Bond 1288.07 1327.91 -4.99 3.20 Morant Wright Fuji Yield GBP Dist Hedged £ 9.31 - 0.40 0.87
Far East $ 591.54 - -21.87 0.00 Saudi Arabia Equity Fund SR 10.42 - -0.01 0.00 Global Val.Cr.Fd EUR Ord Acc € 148.82 - -0.79 0.00
Haussmann Cls C € 2223.09 - -25.69 0.00
Invesco Pan European Small Cap Equity A € 19.96 - 0.62 0.00 Global Basics 2210.80 2279.17 61.85 0.33 Morant Wright Fuji Yield USD Acc Hedged $ 9.32 - 0.40 0.00 Swiss Select Equity Inst Acc SFr 104.96 - 2.21 0.00
Cohen & Steers SICAV (LUX) Haussmann Cls D SFr 1175.09 - -13.80 0.00
Atlantis Investment Management Ltd (IRL) Regulated Ennismore Smaller Cos Plc (IRL) Invesco Pan European Structured Equity A € 15.63 - 0.57 0.00 Global Leaders 3013.61 3139.18 97.97 1.21 Morant Wright Fuji Yield USD Dist Hedged $ 9.34 - 0.39 2.32 Swiss Select Equity Ord Acc SFr 103.66 - 2.18 0.00
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL 5 Kensington Church St, London W8 4LD 020 7368 4220
European Real Estate Securities € 20.8228 - 0.1843 1.88 Invesco UK Eqty Income A £ 29.84 - 0.66 0.00 Global High Yield Bond 888.68 916.17 5.30 4.98 Morant Wright Fuji Yield YEN Acc ¥ 966.25 - 40.98 0.00
www.atlantis-investmenet.com, Tel: 0207 877 3377 FCA Recognised US Growth USD Ord Acc $ 171.03 - -2.28 0.00
Heartwood Wealth Management Limited (IRL)
Regulated Europ.RealEstate Sec. IX € 27.9265 - 0.2472 0.00 Ennismore European Smlr Cos NAV £ 105.42 - -0.05 0.00 Global Macro Bond Fund 11269.97 11618.52 71.88 1.97
Regulated Invesco UK Investment Grade Bond A £ 0.98 - -0.01 2.84 Morant Wright Fuji Yield B YEN Acc ¥ 852.81 - 36.98 - US Growth EUR Ord Acc € 163.55 - -2.19 0.00
Atlantis China Fund $ 6.44 - 0.00 0.00
Gbl Listed Infrastructure I $ 9.4627 - -0.0021 - Ennismore European Smlr Cos NAV € 135.55 - 1.31 0.00 Heartwood Caut Multi Asset B Acc 134.38 - 0.26 0.00 Invesco US Structured Equity A $ 19.82 - 0.38 0.00 North American Dividend Fund 149.48 155.71 4.93 2.50 Morant Wright Fuji Yield YEN Dist ¥ 946.20 - 40.12 2.31
Tuesday 16 February 2016 ★ FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

US Growth GBP Ord Acc £ 171.67 - -2.30 0.00 Optima Partners Focus Fund A $ 14.77 - -0.59 0.00 Pictet Total Ret-Kosmos I EUR € 108.18 - 0.22 0.00 European Conviction A EUR € 141.67 - -2.98 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.24 - 0.03 0.00 Veritas Global Equity Income Fund A EUR € 169.94 - 2.43 4.44 Data Provided by
US Growth USD Inst Acc $ 160.29 - 1.01 0.00 Pictet Total Ret-Mandarin I USD $ 111.01 - 0.68 0.00 European Forager A EUR € 173.00 - -5.02 0.00 SIA (SIA Funds AG) (CH) Global Eq (ex Japan) Class HJ4 ¥ 1.29 - 0.03 0.00 Veritas Global Equity Income Fund A USD $ 97.98 - 0.89 4.51
Other International Fds
Wealthy Nat Bd EUR Inst Inc € 105.39 - 0.09 3.81 Oryx International Growth Fund Ltd Pictet-US Equity Selection-I USD $ 168.78 - 3.90 0.00 Global Eq (ex Japan) Class JP5 ¥ 1.29 - 0.03 0.00 Veritas Global Equity Income Fund C GBP £ 156.80 - 0.21 -
Other International Funds LTIF Stability Growth SFr 173.40 - -12.70 -
Wealthy Nat Bd GBP Inst Inc £ 109.64 - 0.08 3.77 Pictet-US High Yield-I USD F $ 139.61 - 0.57 0.00 Polunin Capital Partners Ltd Global Eq Ex Japan Index Fund (Hedge) ¥ 1.19 - 0.04 0.00 Veritas Global Equity Income Fund C EUR € 204.23 - 2.93 -
NAV (Fully Diluted) £ 7.21 - 0.28 0.00 Other International Funds LTIF Stability Inc Plus SFr 148.90 - -10.80 0.56
Wealthy Nat Bd EUR Ord Inc € 104.71 - 0.09 3.54 Pictet-USA Index-I USD F $ 165.12 - 3.17 0.00 Gbl Govt Bond (Ex Japan) Index ¥ 1.28 - 0.00 0.00 Veritas Global Equity Income Fund C USD $ 117.05 - 1.06 -
Emerging Markets Active $ 39.58 - -1.17 -
Wealthy Nat Bd GBP Ord Inc £ 110.26 - 0.08 3.48
OTP Asset Management Romania SAI SA ((ROM))
www.otpfonduri.ro
Pictet-USD Government Bonds-I F $ 654.25 - -3.67 0.00
Luxcellence Em Mkts Tech $ 856.83 - -9.49 0.00 Standard Life Wealth
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
(JER) Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.25 - 0.00 0.00 Veritas Global Real Return Fund A USD $ 20.02 - -0.24 0.30
www.morningstar.co.uk
Wealthy Nat Bd USD Ord Inc $ 107.54 - 0.07 3.47 Pictet-USD Short Mid-Term Bonds-I F $ 130.30 - -0.13 0.00 Japan Equity Index Fund ¥ 0.89 - 0.06 0.00 Veritas Global Real Return Fund A GBP £ 11.22 - -0.14 0.32
Other International Funds Polunin Developing Countries $ 666.32 671.98 0.45 0.00 FCA Recognised Data as shown is for information purposes only. No
New Capital Alternative Strategies
OTP Comodisro RON 16.90 - 0.00 - Pictet-USD Sov.ST.Mon.Mkt-I $ 102.72 - 0.01 0.00 Standard Life Offshore Strategy Fund Limited Japan Equity Class JP3 ¥ 1.08 - 0.08 0.00 Veritas Global Real Return Fund A EUR € 11.81 - -0.14 0.12 offer is made by Morningstar or this publication.
Polunin Discovery - Frontier Markets $ 1305.54 - -23.00 0.00
All Weather Fd USD Cls $ 117.83 - -0.64 0.00 Bridge Fund £ 1.5058 - 0.0352 1.99 Retail
OTP Obligatiuni RON 14.33 - 0.00 - Pictet-Water-I EUR F € 255.37 - 7.19 0.00
Polunin Small Cap $ 1289.62 1305.74 22.70 0.00
All Weather Fd EUR Cls € 105.67 - -0.67 0.00 Diversified Assets Fund £ 1.1281 - 0.0066 3.08 The National Investor (TNI) Veritas Asian Fund B USD $ 194.29 - -2.42 0.00
OTP Avantisro RON 7.78 - 0.04 -
www.tni.ae
All Weather Fd GBP Cls £ 113.91 - -0.67 0.00 Pimco Fds: Global Investors Series Plc (IRL) Global Equity Fund £ 1.7280 - 0.0521 0.68 Veritas Asian Fund B GBP £ 262.17 - -4.98 0.00
OTP Euro Bond € 12.43 - 0.00 - Private Fund Mgrs (Guernsey) Ltd (GSY) Other International Funds
PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
Tactical Opps USD Cls $ 110.44 - -8.59 0.00 Veritas Asian Fund B EUR € 206.96 - -1.46 0.00
Guide to Data
Regulated Global Balanced Fund - Income Units £ 1.2914 - 0.0256 2.14 TNI Blue Chip UAE Fund * AED 9.21 - 0.08 0.00
OTP Dollar Bond $ 10.61 - 0.00 - http://gisnav.pimco-funds.com/
Tactical Opps EUR Cls € 92.41 - -7.02 0.00 Dealing: +44 20 3640 1000 Monument Growth 09/02/2016 £ 448.08 452.91 -23.46 1.32 Veritas China Fund B GBP £ 129.44 - -1.38 0.00
Global Balanced Fund - Accumulations Units £ 1.5110 - 0.0300 2.10 TNI Funds Ltd (BMU)
OTP Premium Return RON 1055.09 - 1.05 - PIMCO Funds: +44 (0)20 3640 1407
Tactical Opps GBP Cls £ 103.51 - -7.93 0.00 FCA Recognised Global Fixed Interest Fund £ 0.9402 - 0.0006 5.55 MENA Hedge Fund $ 886.58 - -52.38 0.00 Veritas China Fund B EUR € 163.91 - 1.09 0.00 The fund prices quoted on these pages are supplied by
Capital Securities Inst Acc $ 13.52 - 0.02 0.00 Prusik Investment Management LLP (IRL) TNI Funds Plc (Ireland) the operator of the relevant fund. Details of funds
Sterling Fixed Interest Fund £ 0.8208 - -0.0043 4.35 Veritas Global Focus Fund B USD $ 16.20 - 0.02 0.00 published on these pages, including prices, are for the
Enquiries - 0207 493 1331
Commodity Real Return Fund Inst Acc $ 5.40 - 0.11 0.00 MENA UCITS Fund * $ 982.10 - -15.46 0.00 purpose of information only and should only be used
Regulated Veritas Global Focus Fund B GBP £ 20.03 - -0.13 0.00
UK Equity Fund £ 1.7415 - 0.0617 3.02 as a guide. The Financial Times Limited makes no
Credit Absolute Return Fund Inst Acc $ 10.64 - 0.03 0.00 Prusik Asian Equity Income B Dist $ 143.75 - 2.68 4.40 representation as to their accuracy or completeness
Veritas Global Focus Fund B EUR € 14.41 - 0.09 0.00 and they should not be relied upon when making an
Diversified Income - Inst Acc $ 18.51 - 0.02 0.00 Prusik Asia A $ 173.22 - 2.04 0.00 investment decision.
Veritas Global Equity Income Fund B GBP £ 119.85 - 0.16 4.30
Diversified Income Durat Hdg Fund Inst Acc $ 10.51 - 0.06 0.00 Prusik Asian Smaller Cos A $ 126.53 - 1.23 0.00 The sale of interests in the funds listed on these pages
Permal Investment Mgmt Svcs Ltd Veritas Global Equity Income Fund B EUR € 155.79 - 2.23 4.45 may, in certain jurisdictions, be restricted by law and
Northwest Investment Management (HK) Ltd www.permal.com Emerging Asia Bond Fund Inst Acc $ 9.36 - -0.03 0.00 the funds will not necessarily be available to persons
Veritas Global Equity Income Fund B USD $ 97.04 - 0.88 4.53 in all jurisdictions in which the publication circulates.
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Other International Funds
Purisima Investment Fds (CI) Ltd (JER) Persons in any doubt should take appropriate
Other International Funds Offshore Fund Class A US $ Shares Emerging Local Bond - Inst Acc $ 10.44 - 0.00 0.00
Regulated Veritas Global Real Return Fund B USD $ 19.41 - -0.23 0.00 professional advice. Data collated by Morningstar. For
Toscafund Asset Management LLP (UK)
Northwest $ class $ 2306.27 - -23.09 0.00 Investment Holdings N.V. $ 5083.27 - -333.73 0.00 other queries contact reader.enquiries@ft.com +44
Emerging Markets Bond - Inst Acc $ 36.07 - 0.06 0.00 PCG B 142.72 - -0.57 0.00 Stenham Asset Management Inc www.toscafund.com Veritas Global Real Return Fund B GBP £ 11.01 - -0.13 0.00 (0)207 873 4211.
www.stenhamassetmanagement.com Authorised Funds
Northwest Warrant $ class $ 1969.35 - -444.40 0.00 Macro Holdings Ltd $ 4239.18 - 62.40 0.00 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.20 - 0.00 0.00 PCG C 140.70 - -0.56 0.00 Other International Funds Veritas Global Real Return Fund B EUR € 12.61 - -0.15 0.00 The fund prices published in this edition along with
Aptus Global Financials B Acc £ 2.50 - 0.06 4.85
Fixed Income Holdings N.V. $ 338.80 - -10.52 - additional information are also available on the
Emerging Markets Short-Term Local Currency Fund $ 11.35 - 0.01 0.00 Stenham Asia USD (Est) $ 121.57 - -6.43 -
Aptus Global Financials B Inc £ 2.18 - 0.05 5.01 Financial Times website, www.ft.com/funds. The
Permal Absolute Return Fund $ 157.29 - -5.90 0.00 Putnam Investments (Ireland) Ltd (IRL) funds published on these pages are grouped together
Euro Bond - Inst Acc € 22.51 - 0.01 0.00 Stenham Credit Opportunities A Class USD (Est) $ 97.88 - -1.59 0.00 Veritas Asset Management LLP
Regulated by fund management company.
www.veritas-asset.com
Euro Credit - Inst Acc € 14.57 - -0.04 0.00 Stenham Equity UCITS USD $ 122.68 - -5.00 0.00
Putnam New Flag Euro High Yield Plc - E € 945.99 - -2.47 4.13 Toscafund Asset Management LLP Other International Funds Prices are in pence unless otherwise indicated. The
www.toscafund.com change, if shown, is the change on the previously
Euro Income Bond - Inst Acc F € 12.42 - -0.01 0.00 Stenham Growth USD (Est) $ 202.91 - -11.45 - Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00 quoted figure (not all funds update prices daily). Those
Other International Funds
designated $ with no prefix refer to US dollars. Yield
Euro Long Average Duration - Inst Acc € 22.71 - -0.24 0.00 Stenham Healthcare USD (Est) $ 161.98 - -22.09 0.00 Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00
Tosca A USD $ 274.11 - -30.93 - percentage figures (in Tuesday to Saturday papers)
Oasis Crescent Management Company Ltd allow for buying expenses. Prices of certain older
Other International Funds Euro Low Duration Fund Inst Acc € 11.19 - 0.00 0.00 Stenham Managed Fund USD (Est) $ 108.53 - -5.01 - Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
Tosca Mid Cap GBP £ 246.54 - 0.91 0.00 insurance linked plans might be subject to capital
gains tax on sales.
Oasis Crescent Equity Fund R 9.29 - 0.11 0.00 Euro Real Return - Inst Acc € 13.24 - 0.02 0.00 Stenham Macro UCITS USD $ 99.37 - -1.13 0.00
Tosca Opportunity B USD $ 335.74 - 1.47 0.00
Pictet Asset Management (Europe) SA (LUX) Guide to pricing of Authorised Investment Funds:
15, Avenue J.F. Kennedy L-1855 Luxembourg Euro Short-Term Inst Acc € 12.22 - 0.00 0.00 Stenham Multi Strategy USD (Est) $ 111.81 - -3.73 - Waverton Investment Funds Plc (1600)F (IRL)
(compiled with the assistance of the IMA. The
Pegasus Fund Ltd A-1 GBP £ 56.80 - 0.67 0.00 waverton.investments@citi.com
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Tel: 0041 58 323 3000 Investment Management Association, 65 Kingsway,
Euro Ultra Long Duration - Inst Acc € 31.06 - -0.45 0.00 Robeco Asset Management (LUX) Stenham Quadrant USD A (Est) $ 399.52 - 0.92 - FCA Recognised London WC2B 6TD.
Regulated FCA Recognised Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Tel: +44 (0)20 7831 0898.)
Oasis Global Investment (Ireland) Plc Global Advantage - Inst Acc $ 11.94 - -0.04 0.00 www.robeco.com/contact Stenham Trading Inc USD (Est) $ 115.69 - 0.27 - Waverton Asia Pacific A USD $ 15.37 - 0.43 5.83
Pictet-Absl Rtn Fix Inc-HI EUR € 104.66 - 0.25 0.00
FCA Recognised OEIC: Open-Ended Investment Company. Similar to a
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.01 0.91 Global Advantage Real Return Fund Inst Acc $ 8.18 - -0.02 0.00 Stenham Universal USD (Est) $ 416.75 - -13.38 - Waverton Global Bond Fund Cls A $ 8.28 - 0.00 5.56
Pictet-Absl Rtn Glo Div-I EUR F € 121.35 - 0.00 0.00 unit trust but using a company rather than a trust
Asia-Pacific Equities (EUR) € 113.46 - 3.50 0.00
structure.
Oasis Global Equity $ 25.01 - 0.30 0.24 Global Bond - Inst Acc $ 27.75 - -0.06 0.00 Stenham Universal II USD (Est) $ 154.26 - -5.02 0.00 Waverton Global Equity Fund A GBP £ 12.82 - 0.41 0.61
Pictet-Agriculture-I EUR F € 166.56 - 3.97 0.00
Chinese Equities (EUR) € 59.64 - 1.62 0.00
Oasis Crescent Global Investment Fund (Ireland) plc Different share classes are issued to reflect a different
Global Bond Ex-US - Inst Acc $ 19.56 - -0.04 0.00 Waverton UK Fund A GBP £ 12.13 - 0.40 1.98
Pictet-Asian Equities Ex Japan-I USD F $ 180.58 - -4.25 0.00 currency, charging structure or type of holder.
Oasis Crescent Global Equity Fund $ 25.59 - 0.29 0.00 Em Stars Equities (EUR) € 145.92 - 3.31 0.00
Pictet-Asian Local Currency Debt-I USD F $ 152.79 - 0.33 0.00 Global High Yield Bond - Inst Acc $ 18.86 - 0.11 0.00 Stratton Street Capital (CI) Limited (GSY) Waverton Equity Fund A GBP £ 12.99 - 0.07 0.20
Selling price: Also called bid price. The price at which
Oasis Crescent Variable Balanced Fund £ 9.99 - 0.07 0.98 Emerging Markets Equities (EUR) € 122.18 - 3.00 0.00 Regulated units in a unit trust are sold by investors.
Global Investment Grade Credit - Inst Income $ 11.88 - -0.03 3.82 Waverton Sterling Bond Fund A GBP £ 9.09 - -0.01 5.43
Pictet-Biotech-I USD F $ 623.62 - 19.74 0.00 Japan Synthetic Warrant Yen Class ¥ 1276.91 - -178.88 0.00
OasisCresGl Income Class A $ 10.72 - 0.01 2.45 Flex-o-Rente (EUR) € 111.67 - -0.53 0.00 Buying price: Also called offer price. The price at
Pictet-Brazil Index I USD $ 31.41 - 0.24 0.00 Global Investment Grade Credit Fund Inst Acc € € 11.31 - 0.05 0.00 TreeTop Asset Management S.A. (LUX) which units in a unit trust are bought by investors.
Glob.Consumer Trends Equities (EUR) € 133.20 - 3.17 0.00 Japan Synthetic Warrant GBP Hedged Class £ 157.70 - 0.00 0.00
OasisCresGl LowBal D ($) Dist $ 11.06 - 0.06 0.00 Regulated WA Fixed Income Fund Plc (IRL) Includes manager’s initial charge.
Pictet-CHF Bonds I CHF SFr 508.25 - -0.76 0.00 Global Investment Grade Credit Fund Inst Acc $ $ 16.41 - -0.03 0.00
High Yield Bonds (EUR) € 116.61 - 0.44 0.00 Japan Synthetic Warrant USD Class $ 14.20 - -1.44 0.00 TreeTop Convertible Sicav Regulated
OasisCresGl Med Eq Bal A ($) Dist $ 11.16 - 0.09 0.51 Single price: Based on a mid-market valuation of the
Pictet-China Index I USD $ 84.19 - -0.88 0.00 Global Multi-Asset - Inst Acc $ 12.98 - 0.10 0.00 International A € 255.43 - 3.22 0.00 European Multi-Sector € 115.16 - -0.19 0.00 underlying investments. The buying and selling price
Lux -O- Rente (EUR) € 146.91 - -1.27 0.00 Japan Synthetic Warrant USD Hedged Class $ 158.91 - 0.00 0.00
Oasis Crescent Gbl Property Eqty $ 8.56 - 0.04 2.38 for shares of an OEIC and units of a single priced unit
Pictet-Clean Energy-I USD F $ 67.04 - 1.19 0.00 Global Real Return - Inst Acc $ 17.90 - -0.08 0.00 International B $ 328.69 - 3.93 0.00 trust are the same.
New World Financials (EUR) € 41.83 - 1.71 0.00 Renminbi Bond Fund AUD Cls A A$ 117.13 - 0.61 3.59

Pictet-Digital Communication-I USD F $ 226.18 - 4.14 0.00 Income Fund Inst Acc $ 12.11 - 0.02 0.00 International C £ 111.25 - 1.31 0.00 Treatment of manager’s periodic capital charge:
US Premium Equities (EUR) € 159.37 - 3.71 0.00 Renminbi Bond Fund AUD Cls B A$ 119.06 - 0.61 3.35
The letter C denotes that the trust deducts all or part
Pictet-Eastern Europe-I EUR F € 227.58 - 4.71 0.00 Inflation Strategy Fund Inst Acc $ 8.23 - 0.02 0.00 International D € 237.17 - 2.99 3.38 of the manager’s/operator’s periodic charge from
US Premium Equities (USD) $ 178.14 - 4.16 0.00 Renminbi Bond Fund CHF Cls A SFr 113.22 - 0.55 3.68
capital, contact the manager/operator for full details
Pictet-Em Lcl Ccy Dbt-I USD F $ 152.02 - 0.40 0.00 Low Average Duration - Inst Acc $ 14.71 - 0.01 0.00 TreeTop Global Sicav of the effect of this course of action.
Renminbi Bond Fund CHF Cls B SFr 113.20 - 0.56 3.41
PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 7.00 - 0.05 0.00 Global Opp.A € 120.70 - 4.01 0.00 Exit Charges: The letter E denotes that an exit charge
Pictet-Emerging Markets-I USD F $ 414.94 - 9.54 0.00 Renminbi Bond Fund CNH Cls A CNH 124.42 - 0.60 3.47
may be made when you sell units, contact the
PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.28 - 0.20 0.00 Global Opp.B $ 120.49 - 3.68 0.00 Yuki International Limited (IRL)
manager/operator for full details.
Odey Asset Management LLP (CYM) Pictet-Emerging Markets Index-I USD F $ 187.59 - -1.84 0.00 Renminbi Bond Fund CNH Cls B CNH 124.34 - 0.60 3.22 Tel +44-20-7269-0207 www.yukifunds.com
Regulated PIMCO RAE Fundam.PLUS US Inst Acc $ 10.86 - 0.25 0.00 Global Opp.C £ 159.62 - 4.67 0.00 Regulated Time: Some funds give information about the timing of
Pictet-Emerging Corporate Bonds I USD $ 104.45 - -0.12 0.00 Renminbi Bond Fund Euro Cls B € 115.16 - 0.57 3.33
OEI Mac Inc GBP A £ 388.32 - -21.66 0.00 Yuki Mizuho Umbrella Fund price quotes. The time shown alongside the fund
Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.19 - 0.02 0.00 Sequoia Equity A € 116.39 - 3.60 0.00 manager’s/operator’s name is the valuation point for
Pictet-Emerging Markets High Dividend I USD $ 83.64 - 1.58 0.00 Renminbi Bond Fund GBP Cls B £ 117.26 - 0.61 3.40 Yuki Mizuho Japan Dynamic Growth ¥ 5193.00 - -353.00 0.00 their unit trusts/OEICs, unless another time is
OEI Mac Inc GBP B £ 226.97 - -9.20 0.00
StocksPLUS{TM} - Inst Acc $ 20.82 - 0.39 0.00 Sequoia Equity B $ 119.27 - 3.43 0.00 indicated by the symbol alongside the individual unit
Pictet-Emerging Markets Sust Eq I USD $ 76.17 - -0.57 0.00 S W Mitchell Capital LLP (CYM) Renminbi Bond Fund SGD Cls B S$ 116.85 - 0.59 3.32 Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00 trust/OEIC name.
OEI MAC Inc USD $ 2072.43 - -115.75 0.00 Regulated
Total Return Bond - Inst Acc $ 27.02 - -0.04 0.00 Sequoia Equity C £ 141.42 - 3.88 0.00
Pictet-Environmental Megatrend Sel I EUR € 141.95 - 3.43 0.00 Renminbi Bond Fund USD Cls B $ 117.02 - 0.58 3.17
S W Mitchell European Fund Class A EUR € 328.95 - -9.46 - Yuki Japan Low Price ¥ 20291.00 - -1286.00 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Odey European Inc EUR € 897.10 - -46.56 0.00
Pictet-EUR Bonds-I F € 556.80 - -0.65 0.00 UK Corporate Bond - Inst Acc £ 16.98 - -0.12 0.00 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 - Renminbi Bond Fund YEN Cls B ¥ 13248.28 - 48.76 0.00 Yuki Japan Value Select ¥ 9988.00 - -615.00 0.00 midnight. Daily dealing prices are set on the basis of
Odey European Inc GBP A £ 345.94 - -18.01 0.00 Unicapital Investments (LUX)
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.01 - -0.39 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 18.87 - -0.20 0.00 the valuation point, a short period of time may elapse
The Charlemagne Fund EUR € 315.89 - -12.01 - Renminbi Bond Fund USD Cls A $ 161.09 - 0.80 3.44 Regulated YMR Umbrella Fund before prices become available. Historic pricing: The
Odey European Inc GBP B £ 196.35 - -10.20 0.00
Pictet-EUR Corporate Bonds-I F € 198.18 - -0.49 0.00 UK Low Duration - Inst Acc £ 13.87 - -0.01 0.00 Investments III € 5.03 - -22.38 - YMR N Growth ¥ 16475.00 - -4.00 0.00 letter H denotes that the managers/operators will
Renminbi Bond Fund GBP Cls A £ 156.04 - 0.81 3.67 normally deal on the price set at the most recent
Odey European Inc USD $ 414.84 - -21.55 0.00
Pictet-EUR Government Bonds I EUR € 160.17 - -0.29 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00 Investments IV - European Private Eq. € 247.75 260.13 -44.58 - Yuki Asia Umbrella Fund valuation. The prices shown are the latest available
S W Mitchell Capital LLP (IRL) Renminbi Bond Fund SGD Cls A S$ 154.53 - 0.78 3.59 before publication and may not be the current dealing
Giano Capital EUR Inc € 4520.92 - -131.24 0.00 Yuki Japan Rebounding Growth Fund JPY Class ¥ 18613.00 - -1244.00 0.00
UK Sterling Long Average Duration - Inst Acc £ 22.74 - -0.41 0.00 Regulated Investments IV - Global Private Eq. € 366.42 384.74 -49.81 - levels because of an intervening portfolio revaluation
Pictet-EUR High Yield-I F € 229.28 - -0.27 0.00 Renminbi Bond Fund YEN Cls A ¥ 19612.00 - 71.00 0.00 or a switch to a forward pricing basis. The
SWMC European Fund B EUR € 12645.86 - 275.26 0.00 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 778.08 - 46.53 -
Unconstrained Bond - Inst Acc $ 11.43 - 0.06 0.00 managers/operators must deal at a forward price on
Pictet-EUR Short Mid-Term Bonds-I F € 136.93 - -0.02 0.00 Renminbi Bond Fund EUR Cls A € 105.74 - 0.52 3.60
Odey Asset Management LLP (IRL) request, and may move to forward pricing at any time.
SWMC UK Fund B £ 10127.41 - -176.79 0.00
FCA Recognised Pictet-EUR Short Term HY I EUR € 117.37 - -0.03 0.00 US High Yield Bond Fund Inst Acc $ 25.89 - 0.17 0.00 Value Partners Hong Kong Limited (IRL) Forward pricing: The letter F denotes that that
www.valuepartners.net, fis@vp.com.hk managers/operators deal at the price to be set at the
Odey Pan European EUR R € 295.64 - 3.07 0.00 SWMC Small Cap European Fund B EUR € 11718.45 - 153.44 0.00 Zadig Gestion (Memnon Fund) (LUX)
next valuation.
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.90 - 0.00 0.00 Regulated FCA Recognised
Odey Absolute Return Focus Fund $ 100.00 - - - SWMC Emerging European Fund B EUR € 7854.70 - -163.73 0.00 Value Partners Asia ex-Japan Equity Fund $ 7.57 - -0.06 - Investors can be given no definite price in advance of
Pictet-Euroland Index IS EUR € 111.63 - 2.67 0.00 Memnon European Fund I GBP £ 103.11 - 0.25 0.00
the purchase or sale being carried out. The prices
Odey Allegra European EUR O € 238.84 - 2.25 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 9.40 - 0.23 0.00 appearing in the newspaper are the most recent
Pictet-Europe Index-I EUR F € 145.52 - 4.21 0.00
provided by the managers/operators. Scheme
Odey Allegra International EUR O € 154.02 - 0.68 0.00
Pictet-European Equity Selection-I EUR F € 538.70 - 14.97 0.00
Value Partners Classic Equity Fund CHF HedgedSFr 9.81 - 0.24 0.00 Zebedee Capital Partners LLP (CYM) particulars, prospectus, key features and reports: The
Regulated most recent particulars and documents may be
Odey Allegra Developed Markets USD I $ 111.74 - 2.48 0.00 E.I. Sturdza Strategic Management Limited (GSY) Value Partners Classic Equity Fund EUR Hedged € 9.92 - 0.24 0.00 obtained free of charge from fund
Pictet-European Sust Eq-I EUR F € 216.59 - 4.21 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00 managers/operators. * Indicates funds which do not
Platinum Capital Management Ltd Regulated
Odey European Focus Fund € 16.26 - 0.17 0.51 Value Partners Classic Equity Fund GBP Hedged £ 10.15 - 0.25 0.00 price on Fridays.
Pictet-Global Bds Fundamental I USD $ 119.22 - -0.78 0.00 Nippon Growth Fund Limited ¥ 73459.00 - -13122.00 0.00 Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Other International Funds
Odey Atlas Fund GBP I S £ 1.08 - -0.01 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 10.66 - -0.20 0.00 Charges for this advertising service are based on the
Pictet-Global Bonds-I EUR € 165.85 - 0.26 0.00 Platinum All Star Fund - A (Est) $ 115.92 - - - Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00 number of lines published and the classification of the
RobecoSAM (LUX) Strat Evarich Japan Fd Ltd JPY ¥ 70091.00 - -8591.00 0.00
Odey Giano European Fund EUR R € 123.86 - 0.22 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/ Value Partners Classic Equity USD Hedged $ 11.55 - 0.28 0.00 fund. Please contact data@ft.com or
Pictet-Global Emerging Currencies-I USD F $ 94.53 - -0.10 0.00 Platinum Global Dividend Fund - A (Est) $ 51.04 - - - Strat Evarich Japan Fd Ltd USD $ 688.88 - -87.99 0.00 call +44 (0)20 7873 3132 for further information.
Regulated
Odey Naver Fund EUR I € 124.72 - -3.09 0.00 Value Partners Greater China Equity Fund $ 7.03 - -0.09 -
Pictet-Global Emerging Debt-I USD F $ 349.69 - 0.68 0.00 Platinum Maverick Enhanced Fund Limited (Est) $ 84.66 - - 0.00 RobecoSAM Sm.Energy/A £ 10.29 - -0.03 1.67
Odey Odyssey USD I $ 138.32 - -1.94 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 8.64 - -0.11 -
Pictet-Global Megatrend Selection-I USD F $ 195.40 - 3.40 0.00 RobecoSAM Sm.Energy/N € 10.04 - 0.08 0.00 E.I. Sturdza Funds PLC (IRL)
Odey Orion Fund EUR I € 115.14 - 0.00 0.00 Regulated Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.21 - -0.09 -
Pictet-Greater China-I USD F $ 382.84 - -1.92 0.00 RobecoSAM Sm.Materials/A £ 110.20 - 0.43 1.52
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 791.83 - -49.61 0.00
Odey Swan Fund EUR I € 101.79 - -5.42 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 8.20 - -0.09 -
Pictet-Health-I USD $ 235.97 - 4.22 0.00 RobecoSAM Sm.Materials/N € 122.20 - 1.72 0.00
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 933.57 - -58.30 0.00
Odey European Absolute Return GBP S £ 98.44 - -2.65 0.00
Pictet-High Dividend Sel I EUR F € 142.38 - 3.35 0.00 RobecoSAM Sm.Materials/Na € 84.33 - 1.18 -
Nippon Growth (UCITS) Fund JPY Class A shares ¥ 73603.00 - -4506.00 0.00
Veritas Asset Management LLP (IRL)
Pictet-India Index I USD $ 82.94 - 0.41 0.00 RobecoSAM Gl.Small Cap Eq/A £ 70.54 - 0.45 1.34 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 61718.00 - -3778.00 0.00
Odey Wealth Management (CI) Ltd (IRL) Polar Capital Funds Plc (IRL) Veritas Funds Plc
www.odey.com/prices Pictet-Indian Equities-I USD F $ 385.04 - 13.08 0.00 RobecoSAM Gl.Small Cap Eq/N € 135.44 - 2.22 0.00
Asset Management
Regulated Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00 www.veritas-asset.com
FCA Recognised

Asset Management Asset Management

Pictet-Japan Index-I JPY F ¥ 13633.60 - 1038.93 0.00 +353 1 635 6799
Asian Financials I USD $ 253.02 253.02 5.90 1.28 RobecoSAM Sustainable Gl.Eq/B € 158.01 - 3.38 0.00
Odey Opportunity EUR I € 206.89 - 0.49 0.00 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 40010.00 - -2449.00 0.00 FCA Recognised
Pictet-Japanese Equities Opp-I JPY F ¥ 7949.93 - 612.89 0.00 Biotechnology I USD $ 14.18 14.18 0.34 0.00 RobecoSAM Sustainable Gl.Eq/N € 136.52 - 2.92 0.00 Institutional
Strategic China Panda Fund USD $ 1868.25 - -10.78 0.00
Pictet-Japanese Equity Selection-I JPY F ¥ 11698.17 - 866.84 0.00 European Income Acc EUR € 10.02 10.02 0.29 0.00 Veritas Asian Fund A USD H $ 279.01 - -3.46 0.46
RobecoSAM S.HealthyLiv/B € 162.76 - 3.86 0.00
Omnia Fund Ltd Strategic China Panda Fund Hedged EURO € 1825.66 - -10.15 0.00
Other International Funds Pictet-LATAM Index I USD $ 43.49 - 0.42 0.00 European Ex UK Inc EUR Acc € 8.61 8.61 0.22 - Veritas Asian Fund A GBP H £ 355.86 - -6.65 0.25
RobecoSAM S.HealthyLiv/N € 151.85 - 3.60 0.00
Strategic China Panda Fund Hedged Sterling £ 1849.06 - -9.83 0.00
Estimated NAV $ 813.03 - -20.81 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 101.14 - 0.37 0.00 Veritas Asian Fund A EUR H € 281.10 - -1.97 0.23
Financial Opps I USD $ 9.91 - 0.22 2.05 RobecoSAM S.HealthyLiv/Na £ 103.02 - 1.41 -
Strategic Euro Bond Accumulating Class CHFSFr 979.84 - -0.07 0.00
Pictet-Pacific Ex Japan Index-I USD F $ 288.40 - -2.34 0.00 GEM Growth I USD $ 7.36 - -0.01 0.00 Veritas China Fund A USD $ 129.05 - -1.38 0.39
RobecoSAM S.Water/A £ 159.10 - 1.29 1.23
Strategic Euro Bond Institutional Class EUR € 1008.86 - -0.08 0.00
Pictet-Premium Brands-I EUR F € 132.74 - 3.24 0.00 GEM Income I USD $ 8.32 - -0.05 0.00 Veritas China Fund A GBP £ 133.57 - -1.42 0.40
RobecoSAM S.Water/N € 147.41 - 2.68 0.00
Strategic Euro Bond Fund Accumulating Class Shares € 1130.57 - -0.10 0.00
Pictet-Quality Global Equities I USD $ 127.66 - 2.75 0.00 Global Alpha I USD $ 11.28 11.28 0.19 0.00 Veritas China Fund A EUR € 127.49 - -1.37 0.40
Strategic Euro Bond Fund Distributing Class Shares € 1020.58 - -0.09 1.33
Pictet-Russia Index I USD $ 41.24 - 1.19 0.00 Global Convertible I USD $ 10.66 10.66 -0.03 0.00 Veritas Global Equity Income Fund D USD $ 101.86 - 0.92 4.51
Strategic European Smaller Companies Fund EUR Class € 847.91 - -45.53 -
Pictet-Russian Equities-I USD F $ 36.48 - 0.94 0.00 Global Insurance I GBP £ 4.01 - 0.08 0.00 Veritas Global Equity Income Fund D EUR € 175.00 - 2.51 4.43
Optima Fund Management Strategic Global Bond RMB Acc $ 1076.09 - 0.63 0.00
Pictet-Security-I USD F $ 177.34 - 3.49 0.00 Global Technology I USD $ 18.86 - 0.01 0.00 Veritas Global Equity Income Fund D GBP £ 136.14 - 0.19 4.27
Other International Funds
Strategic Global Bond USD Acc $ 1058.56 - -2.47 0.00
Cuttyhunk Fund II Limited $ 1336.51 - -6.16 0.00 Pictet-Select-Callisto I EUR € 102.69 - -1.39 0.00 Healthcare Blue Chip Fund I USD Acc $ 9.59 9.59 0.14 0.00 Veritas Global Focus Fund D USD $ 23.26 - 0.02 0.71
Strategic US Momentum and Value Fund $ 666.52 - 12.78 0.00
JENOP Global Healthcare Fund Ltd $ 12.95 - -0.29 0.00 Pictet-Small Cap Europe-I EUR F € 973.37 - 16.22 0.00 Healthcare Opps I USD $ 32.23 - 0.36 0.00
Schroder Property Managers (Jersey) Ltd Veritas Global Focus Fund D EUR € 20.77 - 0.13 0.69
Other International Funds Strategic US Momentum & Value Fund USD I Class $ 443.19 - 8.49 0.00
OPTIKA Fund Limited - Cl A $ 93.51 - -1.69 - Pictet-ST.MoneyMkt-I € 140.43 - 0.00 0.00 Income Opportunities B2 I GBP Acc £ 1.58 1.58 0.02 0.00 Veritas Global Focus Fund D GBP £ 27.16 - -0.18 0.65
Indirect Real Estate SIRE £ 133.59 140.40 -0.25 2.26 Strategic US Momentum and Value EUR Hedged Class EUR € 464.75 - 8.91 0.00
Optima Fd NAV (Est) $ 82.46 - -1.42 0.00 Pictet-ST.MoneyMkt JPY I USD ¥ 101519.56 - -3.64 0.00 Japan Alpha I JPY ¥ 162.89 162.89 13.75 0.00 Veritas Global Focus Fund A GBP £ 26.22 - -0.18 0.38
Strategic US Momentum and Value CHF Hedged Class CHFSFr 461.82 - 8.83 0.00
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Pictet-ST.MoneyMkt-ICHF SFr 124.07 - -0.01 0.00 Japan I JPY ¥ 1613.66 - 128.23 1.08 Veritas Global Focus Fund A EUR € 12.10 - 0.07 0.39
SIA (SIA Funds AG) (LUX)
Regulated Veritas Global Focus Fund A USD $ 22.44 - 0.02 0.41
The Dorset Energy Fd Ltd NAV (Est) $ 22.31 - -0.53 0.00 Pictet-ST.MoneyMkt-IUSD $ 135.42 - 0.01 0.00 North American I USD $ 15.86 15.86 0.33 0.00 The Hartford International Funds (IRL)
LTIF Classic € 283.36 - 9.68 0.00
Platinum Fd Ltd $ 79.48 - 0.88 0.00 Pictet-Timber-I USD F $ 122.20 - 1.95 0.00 Regulated Veritas Global Focus Fund C GBP £ 28.48 - -0.19 0.00
UK Absolute Equity I GBP £ 12.20 12.20 -0.12 0.00
LTIF Natural Resources € 62.43 - 2.47 0.00 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1710.47 - -15.69 0.00
Platinum Fd Ltd EUR € 15.40 - 0.18 0.00 Pictet Total Ret-Agora I EUR € 115.02 - -0.05 0.00 Veritas Global Focus Fund C EUR € 21.88 - 0.14 0.00
LTIF Stability A ACCU € 146.06 - 2.67 0.00 UK Corporate Bond £ 1547.73 - -10.53 0.00
Platinum Japan Fd Ltd $ 50.55 - 0.71 0.00 Pictet Total Ret-Corto Europe I EUR € 129.94 - -0.43 0.00 Polar Capital LLP (CYM) Veritas Global Focus Fund C USD $ 24.44 - 0.03 0.00
Regulated Gilt £ 1633.56 - -15.18 0.00
Optima Partners Global Fd (Est) $ 13.08 - -0.21 0.00 Pictet Total Ret-Divers Alpha I EUR € 103.46 - 0.24 0.00 Veritas Global Equity Income Fund A GBP £ 130.41 - 0.18 4.28
ALVA Convertible A USD $ 128.02 - -0.62 0.00
22 ★ FINANCIAL TIMES Tuesday 16 February 2016

MARKETS & INVESTING

INSIGHT Capital markets

Gene
Frieda European banks resume sales of debt
ING and Nordea issue year, but it rallied 4 per cent yesterday. worsened. There have been just $3bn of
23% convert to equity or are written down
“The market is just not used to having sales in the month so far, compared with when banks endure severe stress, have
senior unsecured bonds this sort of volatility so early in the about $42bn in January. Decline in the Euro endured huge losses in recent weeks.
Stoxx banks index
in wake of global chaos
EU’s ailing lenders year,” said Nick Dent, head of European
and Asian syndicate at Nomura, yester-
day. “There have been very few win-
Bank funding markets were shut on
several occasions last year, after volatil-
ity in Bunds and worries over Greece.
so far this year. It
rallied 4% yesterday
“This year we’ve seen a bifurcation of
the capital structure,” said Tim Michael,
head of European FIG syndicate at Citi-
require the equivalent THOMAS HALE
European banks began selling bonds
dows of opportunity for issuers given
the backdrop. The mood is much
“We are a lot more used to having this
style of limited access in the primary
$45 bn
Senior unsecured
group. “Covered bonds have been very
active whilst senior unsecured issuance

of palliative care again yesterday after weeks of limited

access to funding, when market turmoil
compounded the worst start to a year
for new sales since 2003.
Yesterday Dutch bank ING and Nor-
stronger today.”
Senior unsecured bonds — a signifi-
cant chunk of European debt markets —
are an alternative to other sources of
bank borrowing, including customer
market,” said Mr Dent. “We’ve been liv-
ing with it for more than a year.”
While primary markets for senior
bonds sold by
Europe institutions
so far this year
has been down significantly.”
There had been no issuances of the
riskier types of bonds in over a month,
debt sales reopened yesterday, condi- he added.
tions remain difficult for European Markets have also drawn geographi-

T
he demise of European bank share prices and
debt is a wake-up call. Economic growth and
financial stability are threatened by a grim
combination of low bank return on equity,
negative interest rate policy, a more rigid bank
resolution structure and regulatory uncertainty.
Most European banks trade at or below tangible book
value. But there is differentiation. A first group of well-cap-
italised institutions trade at discounts to book value
because, like utilities, ROE is capped. A second group,
deemed as undercapitalised or bereft of viable business
models, trade on discounts as large as those seen during
the peak of the sovereign debt crisis.
A negative feedback loop between bail-in instruments
and equity has developed, leading to a loss of confidence.
Developments in Italy and Portugal have awoken investors
to these new risks. Negative interest rate policy is the latest
threat to bank profitability.
Rates cannot fall fast enough to combat declining infla-
tion. This blunts the impact on loan demand, compresses
interest margins and further compromises bank earnings.
So meagre are these earnings that the potential percentage
hit to them is large. As a result the number of banks
deemed viable is shrinking and the number deemed in run
off, or “gone concerns”, is growing.
Will more regulation help? The push for ever higher cap-
ital requirements in theory makes banks safer but in prac-
tice makes them uninvestable. Creditors increasingly
understand that if a bank cannot earn back its cost of
equity, then the cost of bail-in debt should be higher. This,
in turn, erodes the return on equity and pushes up the cost
of equity further — the opposite of what is desired.
The risks of such a negative feedback loop are particu-
larly acute for institutions with legacy non-performing
loans. The stock of NPLs on European banks’ balance
sheets is still about €900bn.
A thin slice of the capital
stack — additional tier one
Given the risk
debt — has become an exces- of a bail-in, bad
sively important barometer of
bank health. Fears that
debts can be a
weakly profitable banks can- noose around
not pay coupons on AT1s have
led to a repricing of senior
lenders’ necks
bank debt, which in turn rein-
forces the fear of declining ROEs.
This cocktail of woes is particularly hazardous, for sev-
eral idiosyncratic reasons. First, the failure to address leg-
acy NPLs has left the system structurally weaker. Restric-
tive state aid rules have in some cases become a binding
constraint on efforts to carve out bad loan portfolios.
Second, banking union is designed around an assump-
tion about an integrated European system that seems
impossible given the way regulation penalises scale and
cross-border activity.
Third, as Europe turns its back on austerity and the effi-
cacy of monetary policy becomes stretched, there is a
growing risk that the European Central Bank’s conditional
commitment to act as lender of last resort comes into ques-
tion again.
Prescriptions for this complex of ailments can be only
palliative in nature, given deeper problems associated
with excessive debt and political fragmentation. But they
should at least aim to ensure that banks are no longer
accelerators of the next big shock.
Once the minimum capital threshold is met, European
regulators should be willing to allow banks to run closer to
those thresholds while they undertake restructuring
to restore profitability. This has happened in the US and
the UK, but not in continental Europe. Forcing banks to
raise expensive capital because future profitability is
unclear increases the probability of that non-viability.
European regulators should use stress tests as a means to
force banks to accelerate NPL disposals. Bad debts remain
a bottleneck to monetary policy transmission, and in the
event of a recession become a potential noose around some
banks’ necks given the risk of bail-in.
Banks that are incapable of making profits are not safe,
regardless of their capitalisation levels. Sectoral consolida-
tion appears inevitable. But barriers to consolidation and
NPL carve-outs remain high in Europe. If this situation is
allowed to persist, ROEs will continue to deteriorate and in
cyclical downturns sector rationalisation will occur via
banks runs.
Gene Frieda is a global strategist for Moore Europe Capital
Management
dea of Sweden launched senior unse-
cured bank bonds, which financial insti-
tutions use to fund the loans they make
to the wider economy.
The debt sales come after chaos across
global markets, with investor fears over
bank stocks and bonds making new
issuance difficult. The Euro Stoxx banks
index is down 23 per cent so far this
Negative rates lose their potency
Central banks have limited
success achieving depreciation
through use of sub-zero shifts
ROGER BLITZ — LONDON
LEO LEWIS — TOKYO
A negative interest rates policy, or NIRP,
is a bit like a best-kept secret: fine if it
remains under wraps, less potent when
it becomes more commonly known.
Pioneers of the unconventional policy
can be found in Europe, where Switzer-
land, Sweden and Denmark have in
recent years used it to tackle a combina-
tion of interrelated concerns: unwanted
rising currencies, weak growth, low
inflation and capital inflows.
The European Central Bank joined
the party in 2014, while the Bank of
Japan is the most recent convert to the
idea, announcing a surprise negative
rate last month.
As a central bank instrument, it
comes from the same part of the toolbox
as quantitative easing, designed to
loosen monetary conditions without
having to fork out for asset purchases.
NIRP looks like a deliberate attempt
to manage exchange rates, but is it
merely exposing the lack of options
available to central banks?
The idea is that NIRP and/or quantita-
tive easing should depreciate currencies
as it drives investors to seek out better-
yielding assets elsewhere.
That is most likely when a number of
factors are in play: signs of perceptible
growth abroad, an overvalued currency,
the NIRP country running a current
account deficit.
There are precious few signs of those
conditions to make the NIRPs of the ECB
and the BoJ effective. Both run signifi-
cant current account surpluses, pros-
pects for emerging markets growth are
small, and their currencies are up
against an increasingly dovish line from
the Federal Reserve, serving to weaken
the dollar.
“The repricing of expectations for the
Fed has been so big that the rates differ-
ential has turned much less into favour
of the dollar, leaving some currencies
with negative interest rates to appreci-
ate,” says Charles St-Arnaud, foreign
exchange strategist at Nomura.
If the ECB’s aim of NIRP was to get a
more competitive currency, then “it got
what it wanted”, at least initially, says
Simon Derrick of BNY Mellon.
NIRP was introduced by the ECB in
June 2014 when the euro was worth
about $1.37, and contributed to the euro
weakening to as low as $1.05 in March
deposits and short-term interbank debt lenders in other areas of the “capital cal distinctions, between Europe’s so-
markets. structure” — which refers to the various called “core” — source of yesterday’s
European financial institutions have kinds of bonds that banks sell. senior bonds — and its “periphery”.
sold just under $45bn of senior unse- Senior unsecured bonds are typically European bank bond issuance was
cured bonds this year, 29 per cent lower low yielding, while other forms of debt, forecast to stagnate this year, implying
than in the same period last year and which count as capital for regulatory low demand for loans. Overall issuance
lower than any start to the year since purposes, come with greater risks and was lacklustre in 2015 and bankers have
2003, according to Dealogic data. higher yields. Additional tier one bonds, said there are few signs that balance
In February low levels of activity the riskiest form of bank debt, which sheets will expand.
Analysis. Currencies
Going underground
When central banks started to go negative on interest rates
Currencies against the dollar (rebased)
European Central Bank Denmark Swiss Central Bank Riksbank Bank of Japan
Jun 2014 Sep 2014 Dec 2014 Feb 2015 Jan 2016
105
100
95
90
85
Euro
Yen 80
Danish krone
Swiss franc
Swedish krona
75
70
2014 15 16
Dates show when each began to go negative on interest rates
Source: Thomson Reuters Datastream Photos: AFP; Bloomberg; Reuters
‘As . . . 2015. But the euro has since strength- Commerzbank, has been taken aback Last week’s heavy sell-off in Japanese
ened by 7 per cent, despite a further low- by Japanese clients’ low expectations of financial sector shares were exacer-
other ering in the deposit facility in December. BoJ expansionist policy. bated by fears that NIRP would make it
central Every time a risk event comes along, “If nobody expects an expansionary harder for banks and brokerages to gen-
such as the Greek crisis or China’s monetary policy to have an inflationary erate income.
banks have exchange rate shocks in August and Jan- effect medium to long term the Worse still, says Masafumi
moved uary, the market turns to haven curren- exchange rate effect of these measures Yamamoto, chief currency strategist at
cies such as the euro and the yen. eases,” he says. Mizuho Securities, those share sell-offs
towards Negative interest rates also merely Although a number of foreign risk putting upward pressure on the yen
negative reinforces negative sentiment, which is exchange strategists still hold that the “to the extent that it could make it
why the BoJ’s adoption of NIRP began so yen could recover to Y120 within the harder for the BoJ to proceed with fur-
interest badly. The yen weakened only briefly year, few are expecting the volatility to ther rate cuts”.
rates, it’s after the NIRP announcement once it evaporate in the coming weeks. It is not just NIRP that is losing
dawned on the market there would be For the time being, central banks will potency. So, too, are the exponents of
clearly more factors pushing the yen higher bend and stretch their NIRP strategies. the policy, the central banks them-
losing its than the BoJ’s policy could counteract. They can go as lows as minus 4.5 per selves.
The yen’s unwanted strength took it cent in the euro area, says JPMorgan, Mr St-Arnaud says in a “vicious cycle”
efficacy’ last week in the range of Y110-Y112 to and even minus 1.3 per cent in the US. of ever lower interest rates that prompt
the dollar. According to equity strate- But the more they do so, the more a Fed reaction of stopping rate normali-
gists at Daiwa Securities, a prolonged NIRP diminishes as a weapon. “As senti- sation or even reversing it, central
stint at Y110 would effectively wipe out ment has turned more negative and banks must realise monetary policy is
profit growth for companies in the other central banks have moved failing to generate inflation.
Topix index. towards negative interest rates, it’s “Maybe it is time for policymakers to
Faith in the BoJ is being tested. Ulrich clearly losing its efficacy,” says Mr address the root of problem rather than
Leuchtmann, head of FX research at Derrick. just treating the symptoms,” he says.

Commodities Currencies

Nickel leads rally after renminbi fears ease
HENRY SANDERSON AND
DAVID SHEPPARD
Commodities from metals to oil rallied
as the People’s Bank of China moved to
ease concerns about the country’s cur-
rency, triggering a broad rally that
lifted stock markets and raw materials.
Nickel, a metal used in stainless steel,
rose 6.7 per cent to $8,260 a tonne yes-
terday on the London Metal Exchange,
its biggest move in two months. Iron ore,
the steelmaking ingredient, rose $2.40
to $45.60 a tonne.
The commodities bounce came as the
renminbi rose the most against the dol-
lar since 2005 following comments by
Zhou Xiaochuan, PBoC governor, that
ruled out a one-off devaluation.
Commodity markets have been hit by
the depreciation of the renminbi in
recent months, which weakens the pur-
chasing power of the world’s largest con-
sumer of commodities as it battles slow-
ing growth.
Nickel’s performance was caused by
traders exiting short positions, accord-
ing to traders.
Total short positions in the metal have
risen this month to 14 per cent of open
interest, or the total number of active
futures contracts. That was the highest
of any LME metal, said Marex Spectron,
a broker.
Copper, meanwhile, rose 1.8 per cent
to $4,571 a tonne.
Oil prices also extended their
rebound, edging up 1 per cent after
posting the biggest one-day rally since
the financial crisis on Friday, surging
11 per cent.
Brent crude, the international oil
benchmark, hit a week high of $33.97 a
barrel yesterday as traders continued to
weigh the possibility of Opec agreeing a
way to curtail production.
The oil minister of Nigeria said that
while the oil cartel had not agreed a
strategy to tackle a growing supply glut,
there was a growing feeling that some-
thing must be done given the pain felt by
producing countries.
Russia, the largest exporter outside
Opec, indicated yesterday that it was
not talking directly with the cartel but
holding talks with individual members.
Saudi Arabia, the Opec kingpin, has
said it will not cut output unless it is
joined by the biggest producers inside
and outside the cartel.
Brent remains down about 10 per cent
in 2016 and has fallen 70 per cent since
mid-2014. West Texas Intermediate the
US benchmark, was up slightly at $29.69
a barrel yesterday but remains down
almost a fifth this year.
Euro falls as Draghi says ECB is ready to act
ROGER BLITZ
Prospects of further monetary loosen-
ing in the eurozone next month helped
push the euro more than 1 per cent
lower, relieving some of the upward
pressure the single currency has
endured in the past two months.
Mario Draghi, European Central Bank
president, rehearsed a well-worn theme
during an address to the European Par-
liament in Brussels, promising the ECB
would “not hesitate to act” if market
turmoil or falling energy costs destabi-
lised prices.
Before his speech the euro had weak-
ened on the back of more positive mar-
ket sentiment out of Asia. Weekend
comments from the People’s Bank of
China strengthened the renminbi and
stimulated risk appetite, reducing the
attraction of supposed haven currencies
such as the euro and the yen. That took
0.7 per cent off the value of the euro
against the dollar, but Mr Draghi’s
remarks weakened the currency further,
pushingitdownto$1.1125.
The yen fell 1.2 per cent, giving some
respite to the Bank of Japan, which has
been fretting about a 10 per cent rise in
its currency in three months.
SincetheECB’sDecemberpolicymeet-
ing, when the market was under-
whelmed by Mr Draghi’s package of
monetary expansion, the euro has risen
morethan7percentagainstthedollar.
The ECB meets again on March 10, but
foreign exchange analysts say factors
beyond its remit represent the best
chance of halting the rise of the single
currency, which is perceived as damag-
ing eurozone competitiveness.
Attention is focusing on the gathering
of G20 finance ministers next week and
whether they can agree on co-ordinated
policy action to calm market anxiety.
“The G20 is becoming very impor-
tant,” said Adam Cole, head of G10 FX
strategy at RBC Capital Markets.
“Any kind of comment out of that
containing the two key words ‘policy co-
ordination’ would be very positive and
is probably more important than the
prospect of ECB policy itself.”
Even so, expectations of a material
move from central banks are subdued.
“The problem is they haven’t much left
to co-ordinate,” Mr Cole said.
Greater risk appetite also boosted
some emerging market currencies. Rus-
sia’s rouble was up more than 1 per cent
on the dollar, while there were gains for
the Malaysian ringgit, Indonesian
rupiah and South African rand. Tur-
key’s lira fell 0.8 per cent on concerns
about tensions on its border with Syria.
Tuesday 16 February 2016 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Change on day
Jamie
Chisholm
European stocks extend rebound 12pt semibold FTSE 100 index
for 1,2,3
9.6pt regular Change on day 2.0%

amid central bank reassurances

US equity markets took a long
weekend to observe President’s Day,
but electronically traded S&P 500
futures by mid-session in Europe were
pointing to the benchmark extending
Friday’s bounce when action resumes
tomorrow.
How is the market set up, technically
speaking? The first thing to note is
that one reason for the renewed burst
of positivity is because the S&P 500
last week, and for the second time
this year, bounced off intraday lows
around 1,810.
Some particularly bearish traders
reckoned a break of that level could
see sellers pile back in and leave the
Wall Street benchmark vulnerable to a
fall back to possibly 1,600 — some 25
per cent off its record high touched
last May.
Still, the market perhaps was ripe for
a snapback, given the depth of the
2016 decline and thoroughly miserable
tone.
The AAII investor sentiment survey
last week showed the proportion of
participants who were bearish had
hit almost a three-year high, according
to Reuters.
However, at no stage during last
week’s sell-off did the S&P’s 14-day
relative strength index, a momentum
gauge, close a session below the
“oversold” threshold of 30. Similarly,
the highest close for the Vix index, a
measure of implied volatility known as
Wall Street’s “fear gauge”, was 28.
Neither signalled anything like the
kind of fearful capitulation that many
in the market would like to see, so they
can call a bottom.
jamie.chisholm@ft.com
US equities
Aug 2015 2016 Feb
Source: Thomson Reuters Datastream
Risk appetite returns and
bank fears recede after
comments from PBoC
and ECB while Nikkei
surges 7% on BoJ hopes
DAVE SHELLOCK
A stellar rally for Japanese stocks paved
the way for European equities to extend
Friday’s rebound as participants
appeared to take the view that last
week’s selling — particularly in the
banking sector — had been overdone.
Reassuring comments from China’s
central bank helped limit the impact of
market turmoil on the country’s stock
market as it reopened after the week-
long lunar new year holiday.
And Mario Draghi, president of the
European Central Bank, helped to
soothe nerves in the market as he deliv-
ered further hints that more stimulus
action could be unveiled next month.
However, analysts noted that the sup-
port derived from central banks yester-
day stood in marked contrast to con-
cerns about the ability of monetary pol-
icy to drive price action.
“Perhaps the best example to reflect
this increasingly dysfunctional relation-
ship between the markets and policy-
makers is Japan,” said Piotr Matys, strat-
egist at Rabobank.
“The Nikkei surged more than 7 per
cent amid speculation that the Bank of
Japan may intervene to prevent the yen
from appreciating further and could
also ease monetary policy further after
the economy shrank by 1.4 per cent
quarter on quarter annualised in the
fourth quarter.”
The dollar jumped 1.3 per cent against
the yen to a three-day high of Y114.65.
In Shanghai, meanwhile, a sharp
opening decline for the Composite
index was pared to just 0.6 per cent by
close of trade as the renminbi recorded
New optimism: FT.com/video
John Authers reports on respite for world markets as data
from the eurozone and the US raise spirits after a bad week
its biggest one-day gain against the dol-
lar in more than a decade.
Zhou Xiaochuan, governor of the Peo-
ple’s Bank of China, said in an interview
at the weekend that capital controls
were not needed and nor was further
renminbi depreciation.
Yesterday the central bank strength-
ened the reference rate, around which
the renminbi is allowed to trade, by
0.3 per cent.
“One of the root causes of the funk
that markets have been in since August
has been China’s foreign exchange pol-
icy and lack of communication around
it,” said Jim Reid, macro strategist at
Deutsche Bank.
“The lack of central bank communi-
Franck Robichon/EPA
cation throughout the two bouts of
weakening in the currency in the last six
months has been deafening, so this at
least shows some willingness to commu-
nicate on something that has been
threatening to destabilise markets with
the fear of a big devaluation hanging
over the market.”
And there were certainly signs of
relief in Europe’s equity markets as the
pan-regional Stoxx 600 index rose 3 per
cent for a two-day rally of 6 per cent.
The financial sector rose 3.1 per cent,
recouping some of last week’s savage
losses. Sentiment had also been helped
by news of a $26m purchase of JPMor-
gan shares by its chief executive, Jamie
Dimon, analysts said.
6000
5800
5600
5400
Jan 2016 Feb
The Xetra Dax in Frankfurt climbed UK equities Reckitt Benckiser jumped
2.7 per cent and the UK’s FTSE 100 rose 6.8 per cent after its full-year sales
2 per cent. US markets were closed for exceeded expectations, helping the
Presidents’ Day. FTSE 100 rally further away from a
The euro extended an early fall three-year low struck last week
against the dollar as Mario Draghi said
the ECB was “ready to do its part” to Eurofirst 300 index
make the eurozone more resilient, Change on day 2.9%
heightening expectations that it would 1350
take further easing action at its meeting
1300
in March.
“Significantly,” said Howard Archer, 1250
chief European economist at IHS Eco-
1200
nomics, “Mr Draghi not only high- Jan 2016 Feb
lighted the downside risks to eurozone
price stability coming from the poten- European equities The banking and
tial second-round effects on consumer telecom sectors spearheaded a second
price inflation from the fall in oil and day of strong gains for the region’s
commodity prices, but also from the stock markets amid a growing view
transmission of the eurozone’s mone- that recent selling had been overdone
tary policy possibly being adversely
affected by the impact of the current Nikkei 225 index
financial market turmoil on banks.”
(’000) Change on day 7.2%
The single currency was down more 18.0
than 1 per cent against the dollar at
$1.1141 as European trading drew to a 17.0
close, while the 10-year German Bund 16.0
yield slipped 3 basis points to 0.24 per
15.0
cent.
Jan 2016 Feb
The return of risk appetite to the mar-
kets, plus the stronger dollar, helped Japanese equities Tokyo stocks rallied
drive a retreat for the gold price from strongly after last week’s ugly sell-off,
last week’s one-year high. with the Nikkei putting in its best one-
The metal was down $30 at $1,208 an day showing since 2008 in spite of
ounce, but off an earlier low of $1,202. some weak domestic economic data
However, base metals enjoyed a more
positive session with copper climbing
1.4 per cent in London to $4,562 a tonne Hang Seng index
— recouping some of last week’s 2 per (’000) Change on day 3.3%
19.5
cent drop — and nickel gaining 5.6 per
cent. 19.0
A volatile session for oil prices saw 18.5
Brent hold above $33 a barrel amid lin-
gering speculation that Opec could 18.0
agree to production cuts in a bid to Jan 2016 Feb
erode a global supply glut. Hong Kong equities The Hang Seng
The international crude benchmark enjoyed its best day for five months,
traded 0.9 per cent higher at $33.66, with HSBC up 4.3 per cent after opting
although activity was light due to the US to keep its headquarters in the UK
holiday.

Trading Directory
Trading Room

Virtu backs clampdown on aggressive

trading at small London share venue
PHILIP STAFFORD
Virtu Financial, one of the world’s larg-
est electronic market makers, has
backed a move by a small UK company
to clamp down on aggressive trading at
its share trading facility.
The US group has come out in support of
Aquis Exchange, a London-based share
trading venue, which last week banned
proprietary traders from placing so-
called aggressive orders on its market.
Aquis said it was taking aim at
“momentum ignition strategies”,
whereby some traders try to kick-start
rapid price movements with a series of
rapid-fire buy or sell orders that are ini-
tiated and then quickly cancelled.
Some techniques are part of legiti-
mate trading but others are illegal.
Either way, Aquis says such strategies
damage liquidity and harm investor
confidence in a market.
After its ban, which was introduced
during one of the busiest trading weeks
of the year, Aquis’s market share
improved marginally — although it
remains about 1 per cent of total Euro-
pean volume.
The move echoes a path taken by
some foreign exchange and US share
trading venues to attract investors that
make bigger trades. Aquis has likened
itself to IEX, a US equity trading venue,
which set off a controversy in the US by
applying to become a fully regulated
stock exchange.
Virtu is one of the largest market
makers on Aquis, and a supporter of
IEX. “As a traditional market maker,
we welcome changes and innovations
that improve markets for all market
participants,” said Doug Cifu, Virtu
chief executive.
“Virtu has been providing attractive,
two-sided liquidity on Aquis from day
one and Aquis’s change does not
adversely impact Virtu’s market mak-
ing and liquidity provisioning on the
platform.”
The aggressive trading ban comes in
what is expected to be a critical year for
‘As a traditional market
maker, we welcome
changes . . . that improve
markets for all’
Aquis, which has struggled to grab
investor attention with a mobile phone-
style “pay for what you consume” data
fee for traders.
It predicted that a fundraising two
years ago would be large enough to take
it through to profitability, although it
made a £4.6m loss last year owing to
increased staff costs.
Aquis sent a letter to fund managers
arguing that liquidity and book depth
on its venue were “better than many
market participants are willing to
acknowledge” and it was “the least
toxic” for investors.
The term “toxic” describes the effect
of trading by “informed” market partic-
ipants, which have access to better,
more up-to-date information than
other investors.
Aquis had argued that the introduc-
tion of two aggressive high-frequency
trading strategies, in September and
December, had led to a decline of liquid-
ity on its venue.
Virtu trades on more than 230 mar-
kets around the world and makes an
average daily net income of $232,000
trading European markets.
www.ft.com/tradingroom

ofmanagersviaasinglelogin.Hargreaves 5.2 per cent to 504.5p after Merrill

London
Hargreaves climbs on
cash deposit hopes
Bryce Elder
Hargreaves Lansdown gained ground
amid growing optimism about its plans
to shake up the market for cash savings
accounts. Shore Capital turned positive
on Hargreaves yesterday, based in part
on the investment supermarket’s
second-half plan to add bank accounts
to its Vantage platform, which allows
customers to trade funds from a variety
said it can make a margin on cash
deposits of 25 basis points, which
customers should be happy to pay for
the convenience of bypassing
application forms and having all their
investments in one place, argued Shore.
Hargreaves closed up 4.1 per cent to
£11.76 as the wider market rally
extended into a second session. The
FTSE 100 closed up 116.68 points, or 2
per cent, at 5,824.28 points.
Reckitt Benckiser led the FTSE
gainers, up 6.8 per cent to £63.71, after
its full-year earnings beat forecasts.
“The key here is that Reckitt’s
ongoing superior performance is largely
self-made — exemplary operational
execution in addition to the brilliance of
the move into consumer health,” said
Deutsche Bank. “Neither benefits will
stop soon and the compounded returns
will simply continue to come through to
its shareholders.”
A day before results, Anglo American
was squeezed 5.1 per cent higher to
393.1p, with the miner widely expected
to announce a scaled-up disposals plan.
British Airways owner IAG added
Lynch upgraded to “buy” on valuation
grounds, with an unchanged target of
610p. European airlines remain
unattractive as a sector but IAG’s 20 per
cent decline this year has more than
priced in tougher transatlantic
competition, while fourth-quarter
earnings due at the end of February are
unlikely to disappoint, Merrill said.
Hammerson took on 4.6 per cent to
559.5p after the shopping centre
developer posted an 11.3 per cent
increase in net asset value for 2015.
Hays rose 4.3 per cent to 112.3p, with
HSBC turning positive in a staffing
sector review. “If this is not the
beginning of a slide into [UK] recession,
merely a pause or slowdown, we see
significant value,” it said.
Shire took on 4.3 per cent to £37.97 on
the back of “outperform” advice from
Exane BNP Paribas, which set a £57
price target. Shire’s purchase of Baxalta
should be enhancing to earnings and
value, Exane argued. But it cautioned
Shire was likely to be held back by
Baxter’s plans to sell its stake in Baxalta
before the deal closes in mid-2016.
24 ★ Tuesday 16 February 2016

SMART MONEY Analysis. Commodities

Henny
Sender
Gold regains its lustre amid fears of falling rates
Precious metal is trading at Bulls are back?
a 12-month high, as faith in Gold
Worst is yet to come as central banks’ policies wanes
EFT gold holdings
(million troy ounce)
The GLD ETF briefly becomes
the world's biggest, overtaking $ per troy ounce
the drawbacks of QE HENRY SANDERSON First gold-backed
the SPDR S&P ETF
exchange traded fund
begin to loom large Gold’s best start to the year since 1980
has been good for Josh Saul, a former
80 listed in Australia The GLD gold-backed ETF,
approved by the World Gold
2000

metals trader who runs a bullion com- Council, starts trading on the
pany based next to the Bank of England. New York Stock Exchange
and amasses $1bn in assets

A
head of a recent appearance in Hong Kong, He has had to hire 10 temporary staff 60 in only three days 1500
one minder for Ben Bernanke suggested to deal with the volume of calls to The
that the former chairman of the Federal Pure Gold Company, which he founded.
Reserve should be asked not about the cost of “We’ve seen a huge increase in the
quantitative easing, but about the impact of amount of enquires and the amount of
the policy instead. people looking to remove exposure to 40 1000
For years, central bankers have been reluctant to sug- equities, banks, bonds and government
gest unconventional monetary policies even had costs. But debt,” he says.
while developed markets plunge deeper into uncharted That fear has helped push gold out of a
financial territory because of central bank actions, the three-year downturn, as prices for the 20 500
Gold hits a record
drawbacks of such policies are becoming apparent. precious metal trade at their highest high of $1,921 per
The negative effects will become more obvious. This will levels in a year. In contrast, global equi- troy ounce, amid
occur as asset price inflation — the main consequence of ties have fallen more than 20 per cent fears over the
central bank policies — goes into reverse, robbing financial since last May, entering a bear market. eurozone debt crisis
engineering of its efficacy and flattening the yield curve. Last year gold slumped as investors 0 0
Suddenly, the success of central bankers in lifting finan- fretted about the Federal Reserve’s first 2003 04 05 06 07 08 09 10 11 12 13 14 15 16
cial asset prices through unconventional monetary poli- rate rise. Today they are focused on the Sources: Bloomberg; Thomson Reuters Datastream
cies seems to be coming to an end. Those policies did little opposite: the prospect of falling and
for the real economy on the way up, because most compa- even negative interest rates.
nies engaged more in share buybacks than in investing in That has prompted fears of a global ‘What’s was studying the feasibility of negative periods of accumulation were domi- Most analysts caution that such a
capacity, and economic growth in the US, for example, economic slowdown and a feeling that short-term rates. nated by North American buyers but quick run-up in price is due a correc-
never broke through a range of 2 per cent to 2.5 per cent, central banks have run out of tools to going to Gold has done better than equities, purchases this year are more evenly dis- tion.
falling under 1 per cent in the fourth quarter. The impact stimulate their economies. For long- sustain it bonds and a broad basket of commodi- tributed globally,” according to HSBC. “I don’t think we’re in the middle of a
on the real economy on the way down will be greater. term gold supporters it is confirmation ties in a low and falling interest rate “This supports the rally.” sustained bull market,” says David Gov-
The Bank of Japan’s use of negative rates, dovish coos that central banks will debase curren- [gold] is a environment, according to a JPMorgan The question is whether the price ett, head of precious metals at London-
from New York Fed chairman William Dudley, and state- cies in times of crisis. They see gold as a loss of analysis of data going back to 1975. rally can entice physical gold buyers in based broker Marex Spectron. “It only
ments from Mr Bernanke’s successor, Janet Yellen, last long-term store of value. Monthly returns for gold averaged India and China who, according to the takes a couple of positive economic fig-
week spooked markets rather than soothed them. “What’s going to sustain it [gold] is a confidence 1.4 per cent during periods of low and World Gold Council, accounted for 45 ures to switch that mentality around
The extent to which QE is loss of confidence in central banking, in central falling US real interest rates, compared per cent of global gold demand last year. and everyone jumps out of the lifeboat.”
losing effectiveness can be which is just starting,” says John Hatha- with a long-run average of 0.4 per cent, It will also depend on the mining envi- Bernard Dahdah, a London-based
seen best in the drop in pri-
‘The US is way, portfolio co-manager at the Toc- banking, according to the bank. It expects gold ronment, according to Joe Wickwire, analyst at Natixis, who was the most
vate equity firms’ share not close to queville Gold Fund. “What’s going to which is prices to rise to $1,250 by the fourth portfolio manager at the Fidelity Select accurate analyst last year as ranked by
prices. In the past few years, it drive that is falling stocks. Zero interest quarter of this year. Gold Portfolio. Mine production in 2015 the London Bullion Market Association,
is possible to argue that no sin-
considering rates for all these years has pushed up just starting’ Gold’s rise last week was mostly recorded its first quarterly decline and predicts gold will drop to just less than
gle group of investors has been negative interest the valuation of a lot of garbage.” driven by buyers of gold-backed its slowest annual growth rate since $1,000 an ounce later this year if the Fed
as big a beneficiary of QE as The European Central Bank cut rates exchange traded funds, which have seen 2008, states the World Gold Council. continues hiking interest rates and the
these large alternative invest-
rates policy’ to negative in December while the Bank their second-largest inflow of funds in “The duration of this move in the gold global economy recovers.
ment companies. They could of Japan did the same last month. Swe- almost six years, according to Bank of space is really contingent on supply con- “If you look at the other fundamentals
finance deals with cheap debt, sell down holdings of port- den cut its rates further to minus 0.5 per America Merrill Lynch. tinuing to come down and the gold surrounding gold, I don’t think demand
folio companies in stock markets which kept rising, and cent last Thursday, while Janet Yellen, These ETF buyers have come from industry getting more right-sized,” he is strong enough to justify a high gold
mark up the value of their privately held portfolio compa- who chairs the Federal Reserve, said it a large geographical base. “Previous says. price,” he says.
nies on the basis of their listed peers. Now those perfect
conditions are going into reverse.
That’s why last week Apollo Global Management and
Carlyle said they were planning some financial engineer- Currencies
ing by buying back their own shares for the first time. They
may be too late. “The share buyback boom has peaked,”
noted Christopher Wood, strategist for the CLSA arm of
Citic Securities, citing “the dramatic underperformance of
Renminbi in biggest
the S&P 500 Share Buyback index relative to the S&P 500
itself”. He added: “The stock market has been ignoring the
1-day rise for decade
clear evidence of deteriorating margins and profitability, a
form of deception encouraged by the share buybacks.”
Meanwhile, Blackstone’s Steve Schwarzman spent much JENNIFER HUGHES AND Mohi-uddin, senior market
of his recent earnings call with his investors talking up the PETER WELLS — HONG KONG strategist at RBS.
dividend yield (11 per cent as of January 28, the day of the China’s currency enjoyed Over the weekend, Zhou
call) and value of his firm’s shares. “Right now you’re get- its biggest one-day gain in Xiaochuan, PBoC governor,
ting Blackstone on sale,” said the eternal salesman. more than a decade as shrugged off fears about cap-
We are in a world where the yield curve is flattening and onshore traders returned ital outflows and maintained
there is little demand to borrow other than to engage in from the lunar new year hol- there were no plans to
financial engineering. Banks’ inability to earn money in iday to supportive com- weaken the renminbi fur-
that world dominated headlines last week. But it will leave ments from the central bank ther. “There’s no motive to
other kinds of financial institutions in even worse shape, and a declining dollar. depreciate the renminbi for
especially insurers that sold guaranteed investment con- the sake of net export expan-
tracts. And savers will earn even less on their savings. The renminbi jumped 1.2 per sion,” he said in an interview
In an election year in the US, it seems unlikely the Fed cent in mainland trading with Caixin, the mainland
will return to its previous pattern of purchasing more secu- yesterday — a bigger move financial magazine.
rities, given the fact that such policies are partly responsi- than on any day since the Exports are yet to feel the
ble for deepening income inequality. It is even more risky People’s Bank of China benefits of a softer currency
for the Fed to adopt a negative interest rates policy (NIRP) started to liberalise the cur- — down 4.8 per cent against
as so many other developed nations have, given that the rency in July 2005. the dollar since a one-off
impact on huge money market funds is unknown. The strengthening fol- 2 per cent devaluation
“The US is not close to considering NIRP,” concluded lowed a week in which the rocked global markets in the
JPMorgan economists in a report. “However, if recession renminbi continued trading middle of August last year.
risks were realised, the need for substantial additional pol- offshore, over which time it Data yesterday showed
icy support would likely push the Fed towards NIRP.” gained 0.9 per cent, while outbound trade, in ren-
However, disconcertingly, the Fed’s latest stress test onshore markets were shut minbi, declined 6.6 per cent
includes just that scenario,according to Mr Wood. for the lunar new year break. year on year in January,
Meanwhile, JPMorgan last week predicted that the Bank Yesterday the PBoC fixed while imports dropped 14.4
of Japan and the European Central Bank are likely to ease the midpoint — around per cent.
more. It is an odd world where the failure of unconven- which the onshore rate can “The big picture up until
tional monetary policies leads to more, rather than less, of trade 2 per cent either side — now has been that after
the same. There will be worse to come. 0.3 per cent stronger against weakening markedly in early
the dollar at Rmb6.5118. 2015, both exports and
henny.sender@ft.com The market rate, mean- imports had since begun
while, rallied to Rmb6.4933 to recover in level terms,”
— completely wiping out said analysts at Capital Eco-
the weakening trend that nomics.
worried global markets last “We had expected this
month. trend to continue into this
More comment and data on ft.com Strategists said the scale of year.”
the onshore move reflected However, they said the dis-
the need to catch up after a torting effect of the new year
Y Fast FT Our global economies, headed week of turmoil around the holiday on early-year data
team gives you market- by Brazil, Russia, India world. Last week the dollar meant that February figures
moving news and views, and China. fell, sending the yen — a tra- would give a fuller picture.
24 hours a day, five days ft.com/beyondbrics ditional haven and Chinese The dollar’s weakness and
a week. ft.com/fastft trading rival — to its strong- the offshore renminbi’s
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a est levels in more than a year. activity over the onshore hol-
irreverent financial blog. look at what is driving “China’s authorities will iday once more removed the
Join Paul Murphy and the global currency not want the renminbi to gap between the two rates —
Bryce Elder for the daily market. ft.com/podcasts start following the yen a stated goal of PBoC policy.
Markets Live session at higher given the challenge The offshore rate contin-
Y Lex Video Analysis Beijing faces in rebalancing ued to strengthen yesterday,
11am. ft.com/alphaville
and opinion from the the economy from manufac- moving in lockstep with
Y beyondbrics News and team on the hot issues turing and investment onshore markets and push-
comment from more affecting companies and towards consumption and ing the dollar back to
than 40 emerging markets. ft.com/lexvideo exports without risking a Rmb6.4939, a two-month
hard landing,” said Mansoor low for the US currency.