WEDNESDAY 16 JUNE 2021 WORLD BUSINESS NEWSPAPER USA $2.50 Canada C$3.

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False economy Geneva face-off Patriot games

Protectionism must not prevail over Biden ready to confront Putin on Japan’s companies walk sponsorship
global trade — MARTIN WOLF, PAGE 15 Russian hacking — BIG READ, PAGE 13 tightrope in Tokyo — OPINION, PAGE 5

Net proceeds Briefing

Berners-Lee i EU and US end 17-year subsidies dispute

auctions code
A breakthrough finalised at Joe Biden’s first EU-US
summit in Brussels has led to a deal ending the
dispute over subsidies to Airbus and Boeing, one of
the longest-running battles in WTO history.— PAGE 3
Sir Tim Berners-Lee, pictured at the
Massachusetts Institute of Technology i DraftKings hurt by short seller’s report
in 2000, is set to raise money for the first Hindenburg Research has claimed the company’s
time from his invention of the world tech unit earns up to half its revenues from illegal
wide web. gambling markets, in the latest attack on businesses
Considered one of the most influential taken public in “blank-cheque” deals. — PAGE 5
people of the past century, Berners-Lee
has never profited directly from his i EU watchdog backs mixing vaccines
invention, which paved the way 30 The European Medicines Agency has warned
years ago for billions of people to access against a dependence on a single shot as it urged
the world’s information on the internet governments to work with a “portfolio of vaccines”
every day. He is now auctioning his orig- to guard against unforeseen circumstances.— PAGE 4
inal source code for the web at Sotheby’s
in the form of a “non-fungible token” — i Vilnius accuses Minsk on illegal migrants
a means of proving the origin of a digital Lithuanian foreign minister
object. Gabrielius Landsbergis has
Berners-Lee plans to give the proceeds told the FT that Belarus is
of the sale to initiatives he supports. “weaponising” migration by
Interview page 3 sending Iraqis and Syrians
Ed Quinn/Corbis
across the border.— PAGE 2

i Ikea’s French chief organised spy ring

EU bars 10 banks from recovery

A Versailles court has ordered the biggest furniture
seller to pay €1m in fines and convicted its former
chief in the country of organising a spying operation
that targeted staff and job applicants.— PAGE 5

fund bond sale over past scandals

i Olympics without fans will need bailout
FT analysis of the accounts has shown the games
will need an $800m rescue if they are held behind
closed doors. Billions of yen from ticket sales have
already been spent.— PAGE 4; INSIDE BUSINESS, PAGE 5

i Norway challenged over Arctic drilling

3 Brussels’ biggest borrowing spree 3 Sanction for market rigging 3 Proof of reform required
TOMMY STUBBINGTON — LONDON
The EU has excluded 10 of the heaviest-
hitting banks in the debt market from
running lucrative bond sales as part of
its €800bn recovery fund, citing histori-
cal breaches of antitrust rules.
Brussels’ biggest borrowing spree
kicked off yesterday with a 10-year
bond to fund the NextGenerationEU
programme under a so-called syndica-
tion, where banks are paid to drum up
demand from investors.
But 10, including JPMorgan, Citi-
group, Bank of America and Barclays,
have been told they cannot take part in
the deals because of previous involve-
ment in market-rigging scandals, accor-
ding to people familiar with the matter.
Banks found to have breached EU
competition rules “will not be invited to
tender for individual syndicated trans-
actions”, said the European Commis-
sion, which handles debt issuance on
behalf of the EU. “The commission
implements a strict approach to ensur-
ing that the entities with whom it works
are fit to be a counterparty of the EU.”
Banks found guilty of antitrust
breaches will be required to show they
have taken “remedial measures” to pre-
vent them from happening again before
they will be allowed to bid for syndica-
tions, the commission added.
Bank of America, Natixis, Nomura,
NatWest and UniCredit have been prev-
ented from taking part following an anti-
trust ruling last month that they partici-
pated in a bond trading cartel during the
eurozone debt crisis a decade ago.
Climate campaigners have filed an application with
the European Court of Human Rights, arguing that
drilling for oil in the Barents Sea in the Arctic Circle
Citigroup, JPMorgan and Barclays — begin in September. This responsibility breaches their right to life and privacy.— PAGE 2
in addition to NatWest — have also been can sometimes prove costly, however, so
barred over a finding two years ago that banks typically regard the fees they
they were involved in manipulating cur- earn from syndications as a sweetener Datawatch
rency markets between 2007 and 2013, for taking on primary dealer status.
people familiar with the matter said. “There’s a delicate equilibrium in the
Deutsche Bank and Crédit Agricole are JPMorgan, relationship between issuers and pri- Sure shot Confidence in
also excluded because of an April ruling Citigroup, Bank mary dealers, and this risks upsetting % who say they are certain or very Covid-19 vaccines
that they were involved in a different of America, that,” said a senior banker at one of the likely to be vaccinated has improved this
0 20 40 60 80 year in the UK.
bond trading cartel, the people said. All Barclays, lenders barred from syndicated deals.
White Muslims are still
the banks declined to comment. Natixis, Nomura, “These issues they are bringing up are Ethnic minority least likely to get
The list includes seven of the 10 larg- NatWest, from a long time ago, and they have Anglican a jab as they
est banks by volume of European gov- UniCredit, been settled.” Other Christian harbour more
ernment and supranational debt sold Deutsche Bank The banks working on yesterday’s No religion fears of side
this year, according to Dealogic. and Crédit inaugural recovery fund bond were BNP Catholic effects. Most say
The 10 banks barred from the syndi- Agricole were Paribas, DZ Bank, HSBC, Intesa San- Other religion they trust their
Muslim
cations are among a list of 39 so-called frozen out paolo, Morgan Stanley, Danske Bank Nov-Dec 2020 Apr 2021
religious leaders
“primary dealers” — banks that have a and Santander. Investors placed more Source: Kings College London, to guide them
responsibility to bid for bonds during than €140bn of orders for the €20bn of University of Bristol on coronavirus
regular debt auctions, which the EU will debt, according to the commission.

PwC to add 100,000 staff in five years

Dead calm on the street
gives investors the jitters
Markets have fallen into a deep
slumber after the inflation fears that
dogged the beginning of the year but
much of their sleep is troubled. Quiet
has descended as the Federal Reserve
seeks to sit out a period of unusually
high inflation. The Vix volatility index,
often referred to as Wall Street’s fear
gauge, struck a pandemic-era low on
Friday. That lack of trepidation has
some investors spooked; they fear that
complacency is setting in.
Analysis i PAGE 8
as ESG consultancy services bear fruit
ANDREW EDGECLIFFE-JOHNSON
NEW YORK
MICHAEL O’DWYER — LONDON
PwC will increase its global headcount
by more than a third over the next five
years as part of a $12bn investment in
recruitment, training, technology and
deals designed to capture a booming
market for environmental, social and
governance advice.
The plan marks a significant accelera-
tion from the audit and consulting
group’s $7.4bn investment since 2016,
over which time its annual revenues
increased 20 per cent to $43bn.
The expansion will add 100,000 peo-
ple to a workforce that has grown by
more than a quarter, to 284,000 people,
in the past five years.
It includes a $3bn plan to double its
Asia-Pacific business, which brought in
$6.4bn in revenue in the year to June
2020, and the launch of “trust leader-
ship institutes” in the US and Asia to
train clients in business ethics and the
rudiments of ESG.
Investors are increasingly scrutinising
the social impact of the businesses they
back and its effect on their returns, and
PwC’s investment plan is the strongest
signal yet that the Big Four accounting
firms expect ESG advice to become a
core part of their business, just as digital
capabilities have become the norm over
the past decade.
Bob Moritz, global chair of PwC, said
the firm was “going to massively invest
to redefine itself and rebrand itself to
make sure we’re valuable for what our
clients need and what the world needs”.
The market for professional advice on
“pure” sustainability issues, such as
clean technology and sustainable
investing, reached $1bn globally in
2020, according to Source Global
Research, which expects that combin-
ing advice on sustainability with other
services will be even more lucrative for
advisers.
The other Big Four firms — Deloitte,
EY and KPMG — are including sustaina-
bility issues within longstanding prac-
tices such as audit and assurance, and
are giving ESG greater prominence
within their businesses.
Accounting firms are also providing
ESG training to auditors as the industry
prepares for increased regulation in
areas such as climate-related disclo-
sures by companies. As regulators dis-
cuss standardised ESG disclosures akin
to the international accounting rules
agreed decades ago, all PwC staff needed
at least “a baseline understanding” of
ESG, said Tim Ryan, US chair.

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2 ★
Lithuania allegations
Belarus accused of ‘weaponising’ migration
Vilnius claims ‘hybrid
attack’ is linked to Baltic
nation’s anti-Minsk stance
RICHARD MILNE — OSLO
JAMES SHOTTER — WARSAW
Belarus is “weaponising” migration by
sending illegal immigrants from Iraq
and Syria across the border to Lithua-
nia, according to the Baltic country’s
foreign minister.
Gabrielius Landsbergis told the
Financial Times that Belarus was
engaged in a “hybrid attack against
Europe” by enticing the migrants with
package deals from a state-owned tour-
ist agency that included flights from
Baghdad or Istanbul, as well as travel to
Covid has hammered a state
already facing lower revenues
from its oil and gas exports
HEBA SALEH — CAIRO
MOHAMED AREZKI HIMEUR — ALGIERS
Standing in front of a bank in Algiers,
Slimane pulled out gold necklaces and
rings from a bag, his wife’s jewellery,
which he hoped to use as collateral for a
loan.
During the pandemic, the 46-year-old
businessman had to shut down his small
company designing and producing pub-
licity material and let go his four full-
time workers.
“It was very hard. It felt like the sky
fell on my head,” said Slimane. “The
pandemic has forced companies to
reduce business or shut down com-
pletely, especially in the travel sector on
which I relied for clients. My wife asked
me to pawn her gold jewellery so we can
start a grocery shop.”
The coronavirus pandemic has hit
Algerians hard, exacerbating the woes
of a state-dominated economy already
scarred by years of falling oil prices and
curbs on local and foreign investment.
Even before the pandemic, almost a
third of Algerian youth were unem-
ployed and many had hoped for change
after the huge protests that led to the
resignation of President Abdelaziz
Bouteflika in 2019.
But with an undiversified economy,
which relies on oil and gas exports, and
depleting foreign currency reserves,
Algeria could soon face economic disas-
ter, analysts warn. Few believe politi-
cians can deliver meaningful change, a
fact made clear by the low turnout at
last weekend’s elections. For the mili-
tary-backed regime, analysts say, the
poll, the first since the protests, allowed
it to project democratic renewal, while
any resulting coalition government of
independents and pro-regime parties is
unlikely to rock the status quo.
“The economic trend is extremely
negative,” said Riccardo Fabiani, north
Africa director at the International Cri-
sis Group, a conflict resolution organisa-
tion. “There is a liquidity crisis at banks
and local companies. In construction,
the biggest sector after oil, there has
been a record number of bankruptcies.
The country could be heading towards
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FRIDAY 31 MARCH 2017
Trump vs the Valley
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
HMRC warns
customs risks
being swamped
by Brexit surge
3 Confidence in IT plans ‘has collapsed’
3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expectedonce Britain
leaves the EU, customs authorities have
admitted toMPs.
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Published daily except Sundays, New Year’s Day,
the Lithuanian border. So far this year,
Lithuania has detained almost double
the migrants who crossed the frontier
from Belarus than the combined total
for the three previous years.
“This is weaponised migration that is
directly aimed at Lithuania. The rea-
son? It’s quite easy to guess. We are out-
spoken, we shelter the main opposition
leaders [from Belarus],” Landsbergis
said.
Lithuania has been on high alert since
Belarus last month forced the landing of
a Ryanair plane from Athens to Vilnius
and then seized prominent dissident
Roman Protasevich, who had been liv-
ing in exile in the Baltic country.
Belarusian president Alexander
Lukashenko threatened last month that
his country could relax some controls
Pandemic pushes Algeria to the brink
Voting choice:
men relax in
central Algiers
alongside
campaign
posters for this
month’s election
Ramzi Boudina/Reuters
WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
A Five Star plan? Dear Don...
Italy’s populists are trying to woo May’s first stab at the break-up
the poor — BIG READ, PAGE 11 letter — ROBERT SHRIMSLEY, PAGE 12
Lloyd’s of Brussels Insurance market
to tap new talent pool with EU base
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Briefing
THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
AMERICAN WAY OF LIFE
non-urgent operations and for A&E treatment while
some surgical procedures will be scrapped.— PAGE 4
i Emerging nations in record debt sales
FT WEEKEND MAGAZINE
Developing countries have sold record levels of
government debt in the first quarter of this year,
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15
Credit Suisse
Art of persuasion Mystery deepens
i London tower plans break records
A survey has revealed that a
record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen
engulfed in
adjust its negotiation position with the in London. Work began on
EU, a Whitehall official said. “If running almost one tower a week
our own customs system is proving during 2016.— PAGE 4
much harder than we anticipated, that
ought to have an impact on how we i Tillerson fails to ease Turkey tensions
fresh tax probe
press for certain options in Brussels.” The US secretary of state has failed to reconcile
In a letter to Andrew Tyrie, chairman
of the Commons treasury select com-
tensions after talks in Ankara with President Recep
Tayyip Erdogan on issues including Syria and the
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FINANCIAL TIMES
INTERNATIONAL
on its borders, as tensions with the west until June 14, up from 74 last year. “This
mounted. “We stopped drugs and is the direction it might be going, to test
migrants; now you will eat and catch the country, to test Europe,” he added.
them yourselves,” he warned during an Belarus’s foreign ministry did not
address in the Belarusian parliament.
Landsbergis said that Tsentrkurort, a
respond to requests for comment, nor
did Tsentrkurort.
Franak Viacorka, an adviser to Bela-
rusian opposition leader Sviatlana
‘[President Alexander Tsikhanouskaya, who is also in Lithua-
Lukashenko] crossed a red nia, said the approach taken by Lukash-
enko was unsurprising.
line a long time ago. We “Lukashenko’s job right now is to take
have to be really vigilant’ revenge,” he told the FT. “But he has
such limited opportunities to take
Belarusian state-owned tourist agency, revenge, that he is trying to create some
was using Boeing 777 planes to bring in problems on the border because that is
migrants and claimed there were cur- the only leverage he has.”
rently 1,000 Iraqis and Syrians in Landsbergis called Lithuania “the
Minsk. Lithuania has stopped 387 country of freedom fighters” and said it
migrants at the Belarusian border up would soon need help from the rest of
North Africa. Undiversified economy
economic disaster with a heavy social reserves, which sank from $200bn in -6%
cost.” 2014 to $47bn in 2020. Algeria’s economic
The economy shrank 6 per cent last The military, which has controlled decline in 2020,
year, according to the IMF, which key decisions since independence from according to IMF
projects 2.9 per cent growth in 2021 on France in 1962, has been reluctant to
the back of higher oil prices. It forecasts introduce reforms that would $169.6
a budget deficit of 18.4 per cent of gross unshackle the private sector, encourage Price per barrel of
domestic product in 2021. To balance its investments and bring transparency to oil IMF says country
budget, the lender said Algeria needed an economic system built on vested would need to
an oil price of $169.6 per barrel, more interests and clientelism fuelled by pet- balance its budget,
than twice the current price of $72. rodollars. Under Bouteflika, a crony whereas current
price is $72
“Politicians say they want to open up capitalist private sector was allowed to
the economy and to diversify,” said thrive, and benefited from political
Mabrouk Aib, a university lecturer and patronage and government largesse. $47bn
public policy analyst in Algeria. “They Many of these businessmen are now in Level of foreign
want a lot of things. That is what they prison for corruption and the state has currency reserves in
claim, but actually we do not know if taken over some of their companies. 2020, down from
they have a clear strategy of how they Given its lack of foreign debt and a ris- $200bn in 2014
are going to implement this.” ing oil price, the Algerian regime could
Even as falling oil prices have still buy “a year or two”, Fabiani noted. It
squeezed government finances and lim- could resort to bilateral borrowing from
ited its ability to offer handouts and cre- China or the Gulf. Abdelmadjid Teb-
ate jobs for its predominantly young boune, president, last year ruled out a
population, Algeria’s military decision loan from the IMF, saying it would con-
makers, or decideurs as they are known, strain the country’s independent for-
have failed to diversify the economy. eign policy. “The big question remains,
Instead, successive governments have What is the new government going to
burnt through foreign currency do?” said Fabiani. “Will they come up
Italy could be ‘right country at right time’ to be world’s middleman
“We’re starting to see for the first time
GLOBAL INSIGHT in such a stark way a sequence that goes
from the G7 to G20 to broader institu-
Martin
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
tionalised multilateral diplomacy” such
Sandbu
as the OECD for tax or the WTO for vac-
cine patents, says Nathalie Tocci, direc-
Censors and sensitivity
Warning: this article may be
FEBRUARY 4 2017
upsetting — LIFE & ARTS
tor of the Italian Institute of Interna-
How To Spend It
B
tional Affairs.
Chic new lodgings
oris Johnson, who enjoys the Many of the world’s biggest chal-
UK’s presidency of the G7 lenges are only likely to be solved if lead-
group of leading economies ing rich countries agree among them-
and its chairmanship of the selves first, before they reach an under-
UN’s COP26 climate confer- standing with emerging powers and
ence, is not the only one seizing an eventually an alignment with all rele-
opportunity from its global convening vant countries. That makes the G20 the
power this year. So will Italy. pivotal link in this “cascading multilat-
Rome holds the year-long presidency eralism”, says Tocci.
of the G20, where the biggest high-in- What will Italy make of this opportu-
come countries join the biggest emerg- nity? Italian foreign policy observers are
ing economic powers such as China, united that premier Mario Draghi’s stat-
India and Brazil. It is also a co-chair, ure makes a big difference. “Draghi has
with the UK, of COP26, although that is a such a personal standing, internation-
second-fiddle affair. The G20, however, ally, that his voice will be more relevant
convening in Venice next month, is than Italy’s one would normally be,”
where the ball now passes from the G7. points out Marta Dassù, a former Italian
On most of the issues on the global deputy foreign minister.
agenda, international taxation, a global Under Draghi, Italy’s foreign policy
vaccine drive, economic recovery, and stance “is back to a clear pro-European
climate change, it is hard to get far with- and pro-Atlantic line” adds Dassù.
out collaboration between high-income In terms of style and rhetoric, too,
countries and developing nations. there is a break. “The classic Italian
Europe to deal with the migrants. Viln-
ius is already in discussions with Tur-
key, a fellow member of Nato, about
stepping up border and identity checks.
He added that, after the “hijacking” of
the Ryanair plane, Lithuania was not
ruling out any action from Belarus,
including the targeting of Belarusian
dissidents inside the Baltic country.
“Now we are in a position where we
have to consider everything. [Lukash-
enko] crossed a red line a long time ago.
We have to be really vigilant,” Landsber-
gis said. But he added that Lithuania
would not change its outspoken policy
against the Lukashenko regime.
“They’ve been testing the means, and
they’ve been testing the methods, and
now they’re weaponising it,” Lithuania’s
foreign minister said.
with any new ideas?” Already, rising
prices have sparked repeated demands
for salary increases and strikes by dif-
ferent sectors of society, from teachers
to doctors to postal workers.
Wary of protests, authorities cracked
down in the run-up to the election, pre-
venting marches by the pro-democracy
movement that ousted Bouteflika in
2019 and flooding central Algiers with
police cars. More than 200 people are in
prison in connection with protests.
However, the authorities are well
aware that living conditions are increas-
ingly harsh for Algerians.
“I have a family of seven to support,
but the construction company for which
I worked has shut down,” said Samir
Yefsa, an unemployed 50-year-old.
“The state was our only client, but the
government now has no construction
programme.
“I don’t know what to do. I have prob-
lems feeding my family. I can only bor-
row from family and friends who are
retired and live on pensions, because
others who are younger are in a situa-
tion similar to mine.”
strategy is wait and see, a tendency to
not take part in the conflict,” says Art-
uro Varvelli, head of the European
Council on Foreign Relations’ Rome
office. “Draghi understands that if you
are not part of the game you are totally
excluded by the negotiation table.”
Italy under Draghi has established a
clearer distance to countries such as
Turkey (whose leader he called a “dicta-
‘Draghi has such standing
that his voice will be more
relevant than Italy’s one
would normally be’
tor”), Russia and China. Dassù points
out that Italy now is making active use of
“golden share” powers to stop Chinese
takeovers in sensitive sectors.
That aligns Draghi with US president
Joe Biden’s attempt to “relaunch rela-
tionships between the US and Europe”
where the US will continue to guarantee
Europe’s security but Europe will sup-
port it against China’s foreign policy and
economic ambitions rather than opt for
a more independent line, says Varvelli.
Wednesday 16 June 2021
Climate change
Norway faces
fresh legal
challenge
to Arctic
drilling
RICHARD MILNE — OSLO
Environmental activists are pushing a
European court to rule that Norway’s
drilling for oil in the Arctic breaches
their and future generations’ human
rights in the latest legal challenge to
fossil fuel exploitation.
Norwegian courts found three times
that the government had not broken the
country’s constitution and its right to a
healthy environment by opening up
large parts of the Barents Sea, north of
the Arctic Circle, to oil exploration for
the first time.
Six young activists and two environ-
mental groups have filed an application
with the European Court of Human
Rights (ECHR), arguing that the explo-
ration breaches their rights to life and
privacy.
“We have to do everything we can to
stop the climate crisis . . . For Norway, it
is important because we have an econ-
omy that’s based on oil. We have a prob-
lem that the politicians won’t sit down
and make a plan for stopping drilling for
oil,” Mia Chamberlain, one of the Nor-
wegian activists, told the Financial
Times.
The activists have been emboldened
by a series of recent rulings including a
court in the Netherlands ordering Royal
Dutch Shell to increase its emission cuts,
and Germany’s constitutional court
demanding changes to the country’s cli-
mate laws.
Six Portuguese applicants have taken
a separate case to the ECHR against all
the EU states as well as Norway, Russia,
Switzerland, Turkey, Ukraine and the
UK, arguing that the countries need to
take urgent action against climate
change.
Norway is western Europe’s biggest
petroleum producer with its largest oil
and gasfields. But the activists are
focused on the 2016 decision to open up
new areas of the Barents Sea for explora-
tion, the first new acreage Norway
offered for two decades.
They argue that Norway failed to con-
sider climate change adequately in that
decision, especially its obligations
under the Paris agreement, as any oil-
fields in the new areas could continue
production well beyond 2050.
“The Arctic is special because of its
vulnerable ecosystems. The conse-
quences of an accident, and normal oil
drilling, are much bigger than other
places,” said Therese Hugstmyr Woie,
head of Young Friends of the Earth Nor-
way, one of the organisations behind the
lawsuit.
The applicants include an activist
from the indigenous Sami community
afraid of how climate change will affect
his “people’s way of life” and 22-year-
old Chamberlain, who said she had long
suffered from “climate anxiety”.
She added: “This is what I’ve been
struggling with since I’ve been 14. I was
unable to watch the news because every
time something came on about climate
change I thought it was a catastrophe
but at the same time my parents were
still driving a car.”
The European court, which requires
applicants to be personally and directly
affected, will decide if the case dubbed
“The People vs Arctic Oil” is admissible.
Norway’s oil ministry declined to com-
ment.
But while this means Draghi can
“build upon a new western consensus
[it] will not be enough to reach out to the
rest . . . Draghi is probably not the
ideal” bridge builder between rich and
poor countries, says Dassù.
Compared with other western coun-
tries, however, Italy may still be well
placed to build a consensus, Tocci sug-
gests. Italian diplomacy has not tradi-
tionally hinged “on the ability (Italy)
has to bring countries along”, she notes,
but on the fact that “we’re kind of liked
by everyone”. Despite its colonial past in
Africa, it does not trigger the same wari-
ness as France or the UK. Italy could be
“the right country at the right time”.
Italy’s global role could also matter at
home. Another alignment with Biden is
Draghi’s willingness to spend big to sup-
port a sustainable recovery after the
shock of the pandemic. “The choice to
help the global recovery will be the com-
mon paradigm in the near future,” adds
Varvelli. In a country tempted by pop-
ulism, showing that national and collec-
tive interests match would put Draghi in
a “strong position to restore Italian sup-
port for multilateralism”.
martin.sandbu@ft.com
Wednesday 16 June 2021 ★ FINANCIAL TIMES 3

INTERNATIONAL

Aircraft makers

Airbus-Boeing deal eases tariffs EU and US end aviation

threat on both sides of Atlantic
Working group set up to thrash out understanding on past and future subsidies
JIM BRUNSDEN — BRUSSELS
SYLVIA PFEIFER — LONDON
The end of the EU-US struggle over air-
craft subsidies, thrashed out over meals
of sea bass and lamb stew in Brussels,
marks a truce in what had seemed an
intractable trade conflict.
For policymakers in Brussels, the
hope is the Airbus-Boeing deal deci-
sively turns the page on Trump-era
trade tensions. For business on both
sides of the Atlantic, it lifts the spectre of
punitive tariffs on goods that stretch
beyond aviation to Georgia cane molas-
ses and Italian cheese. But the deal,
sealed at yesterday’s EU-US summit,
also marks the start of a long process
that requires close co-operation if both
sides are to turn their fire away from
each other and focus on mutual trade
challenges posed by China.
What was the dispute about?
It began in 2004, when the number of
Airbus aircraft deliveries first overtook
those of its US rival. A previous under-
standing on subsidies collapsed, with
the US administration alleging unfair
state aid. The EU countered with its own
complaint. The World Trade Organiza-
tion opened probes into both sides.
The main US criticism was over so-
called launch aid provided to Airbus by
its EU host nations (at the time, the UK,
France, Germany and Spain).
The aid amounted to government
financing for the development of new
models, reimbursed via royalties on
future sales.
The EU retorted that Boeing benefited
from US support that broke WTO rules,
notably, tax breaks from Washington
state where the company is based. Tit-
for-tat disputes ensued, as each side
accused the other (successfully) of fail-
ing to comply with WTO rulings.
In 2019, the WTO awarded the
US the right to slap retaliatory
tariffs worth $7.5bn on European
products. The US hit list ranged from
French wine to German machine tools.
The next year,
the EU was
authorised to
put additional tar-
iffs worth almost
$4bn on US goods. Its
similarly eclectic hit list ranged from
spirits to ornamental fish.
Ending the dispute only became a
serious possibility with the advent of the
Biden administration, and a growing
mutual awareness that it was damaging
companies on both sides, while aiding
China’s ambitions in the commercial
civil aviation market.
In March, the two sides agreed to
In accord: Ursula von der Leyen,
European Commission president,
Joe Biden, US president, and
Charles Michel, European Council
president, in Brussels yesterday
Thierry Monasse/Bloomberg
suspend their retaliatory tariffs for
four months, creating a window for
negotiations.
What is in the deal?
Its key element is a five-year suspension
of punitive tariffs, and the creation of a
working group tasked with reaching a
final understanding on past and future
subsidies.
Boeing, welcoming the deal, said it
“commits the EU to addressing launch
aid, and leaves in place the necessary
rules to ensure that the EU and the US
live up to that commitment, without
requiring further WTO action”.
Still, to set some rules for the road,
WTO benchmarks on R&D funding, tax
breaks and other kinds of
subsidy will be
used. The deal
also calls for regular
ministerial level contacts
— mainly between EU
trade commissioner
Valdis Dombrovskis and US trade repre-
sentative Katherine Tai — to review
progress.
Importantly, both sides agreed to co-
operate on handling “non-market econ-
omy” entrants into the civil aviation
market.
In a statement, US president Joe Biden
explicitly linked that to countering
“China’s non-market practices in this
sector that give China’s companies an
unfair advantage”.
What are the implications for the
aviation sector?
Welcome relief. The sector has been
among the hardest hit by Covid-19, and
the prospect of a trade war would have
been an extra costly distraction. Deliv-
eries of aircraft remain well below their
levels before the pandemic, as cash-
strapped airlines have cancelled or
deferred orders.
Airbus and Boeing officials have also
recently signalled they wanted a settle-
ment not least because their longstand-
ing duopoly faces growing Chinese com-
petition, where state-owned aerospace
manufacturer Comac is developing the
C919, designed to rival the Airbus A320
and Boeing 737. Boeing forecast last year
that China will become the world’s larg-
est aviation market, with around 25 per
cent of worldwide growth already com-
ing from the Asian country in the past
decade. “My confidence is high that we
have resolved these disputes,” Tai said
yesterday. “We are putting away our liti-
gation briefcases.”
Where does the deal leave EU-US
trade?
It ends one long-running source of dis-
cord. Now, Brussels is pushing for
progress on another: Trump-era tariffs
on steel and aluminium.
These have harmed EU producers
and led to separate EU retaliation
against US consumer goods such as Har-
ley-Davidson motorbikes and bourbon
whiskey. Biden and the EU agreed yes-
terday to set up a working group on this
issue. For the EU, it is a particularly bit-
ter row as the Trump administration
justified the move by branding the EU a
national security threat, alongside other
traditional US allies such as Canada. But
while Canada was subsequently granted
a reprieve by Trump via a trade agree-
ment, there has been no relief the EU.
EU officials say the bloc is seeking to
end disputes while pressing ahead with
a positive agenda. To that end, Biden
and EU chiefs also agreed to set up a
“trade and technology council” to co-
operate on setting rules for emerging
sectors such as artificial intelligence and
technologies such as semiconductors.
dispute after 17 years
JIM BRUNSDEN AND SAM FLEMING
BRUSSELS
AIME WILLIAMS AND JAMES POLITI
WASHINGTON
The EU and US have agreed to end a 17-
year dispute over aircraft subsidies,
lifting the threat of billions of dollars in
punitive tariffs on their economies in a
boost to transatlantic relations.
Two days of intensive talks in Brussels
led to a draft deal on how to handle sub-
sidies for Airbus and Boeing, with the
breakthrough finalised yesterday at US
President Joe Biden’s first EU-US sum-
mit in Belgium.
“With this agreement, we are ground-
ing the Airbus-Boeing dispute,” said EU
trade commissioner Valdis Dombrov-
skis. “We now have time and space to
find a lasting solution . . . while saving
billions of euros in duties for importers
on both sides of the Atlantic.”
The deal takes the form of a five-year
accord to suspend tariffs linked to the
original disagreement. Coupled with
that is the creation of a minister-level
working group to discuss subsidy limits
and overcome any issues that may arise.
The intention is that disagreement
never re-emerges, including for new
models. The deal commits the EU and
US to ensuring R&D funding to aircraft
makers will not “harm the other side”.
The sides also pledged to work together
in “addressing non-market practices of
third parties”, which officials said was a
nod to concerns on China.
“Both sides agree that it is wiser to put
our disputes to rest and see how we
[can] actually co-operate in this area,
and how we work on ensuring a global
level paying field,” Dombrovskis added.
The EU trade commissioner was “con-
fident . . . we will be able to put this dis-
pute to rest completely”. He added: “It is
already a very big step in that direction.”
The deal was confirmed after being
reviewed by Airbus’s three host coun-
tries in the EU; Germany, France and
Spain. The French government said:
“We can now focus on putting these dis-
agreements behind us, and on defining
the conditions of fair competition at the
global level for state support to the aero-
nautic sector.” The breakthrough lifts a
cloud of uncertainty hanging over the
sector, and removes the threat that
$11.5bn of EU and US consumer goods
could again be hit with punitive tariffs.
Those duties, on products from
French wine to US sugarcane molasses,
were suspended after the EU and US
agreed in March to lift them for four
months and start talks on a solution.
Airbus said the deal would provide
“the basis to create a level-playing
field”, adding it “will also avoid lose-lose
tariffs that are only adding to the many
challenges that our industry faces”.
The dispute is one of the longest-run-
‘We now have time to find
a lasting solution . . . while
saving billions of euros in
duties for importers’
ning battles in the history of the World
Trade Organization, and one both sides
acknowledged they can increasingly ill-
afford as they seek closer co-operation
to tackle China’s state capitalism.
Dombrovskis held talks with US trade
representative Katherine Tai and com-
merce secretary Gina Raimondo before
the summit to get the deal over the line.
Companies on both sides of the Atlan-
tic have long called for a solution. The
matter took on greater urgency after the
US targeted European exports worth
$7.5bn with extra tariffs in October
2019, while the EU imposed additional
duties on $4bn of US exports last year.
Both sets of measures were in line
with WTO rulings that favoured each
side. But both sides have been found to
have failed to implement properly WTO
rulings on illegal subsidies for their air-
craft manufacturing champions.
One sticking point was that the nature
of subsidies on each side of the Atlantic
is very different, with EU officials point-
ing to sizeable US defence contracts as
one example. Other irritants in trade
ties remain on steel and digital taxes.

Interview. Tim Berners-Lee

Web inventor to auction original code

Sotheby’s sale will mark first
time father of the internet can
raise money from invention
TIM BRADSHAW — LONDON
Sir Tim Berners-Lee is auctioning his
original source code for the web in the
form of a “non-fungible token”, as dig-
ital collectibles continue to fetch mil-
lions of dollars despite the recent sell-off
in cryptocurrencies.
The auction at Sotheby’s will be the
first time that Berners-Lee has been
able to raise money directly from one of
the greatest inventions of the modern
era, with the proceeds benefiting initia-
tives supported by him and his wife
Rosemary.
“The idea is somebody might like a
digitally signed version of the code, a bit
like plenty of people have asked for
physically autographed copies of the
book,” Berners-Lee said.
Auctioneers hope that the one-of-a-
kind digital artefact will ignite interest
in NFTs beyond their mainstay of art-
works, games and sports memorabilia.
Investment in NFTs has waned since
March’s record-breaking $69.3m sale of
Beeple’s “Everydays: The First 5000
Days”.
In an interview with the Financial
Times, Berners-Lee, 66, said the auction
was an “opportunity to look back . . . 30
years on from the initial code, which
was very, very simple, to the state [of the
web] now, which has some wonderfully
simple aspects to it but also has a lot of
issues of various sorts”.
Unlike the founders of Google, Face-
book and Amazon, who gained enor-
mous riches through the web, Berners-
Lee is no billionaire. The source code
behind the world wide web and its first
browser, which were conceived and
coded by Berners-Lee between 1989 and
1991, was never patented. Instead, it was
released free into the public domain by
Cern, the particle physics laboratory in
Switzerland where the British scientist
worked at the time.
The move enabled widespread uptake
of a technology now used by more than
4bn people every day. But for potential
archivists and collectors, it also compli-
cated the idea of authenticating Bern-
ers-Lee’s original work.
Cassandra Hatton, global head of
science and popular culture at
Tim Berners-Lee
says he will use
the proceeds to
support initiatives
backed by him and
his wife Rosemary
Sotheby’s, said: “The fantastic thing
about NFTs is we can create this digital
provenance document, proving the
authenticity coming from the creator.
“This will become the reference point
for all others. It really is the most appro-
priate, quintessential digitally-born
artefact” for an NFT auction, she added.
While Berners-Lee said the NFT
project was his “first foray into crypto”,
he sees similarities in his original vision
for the web and the philosophy behind
the decentralised network of the
ethereum blockchain, which underpins
most NFTs. It also chimes with his latest
project, Solid, which is designed to give
individuals back control of their own
personal data.
“The blockchain and Solid communi-
ties share the motivations of wanting to
empower people,” Berners-Lee
said, adding that many blockchain
projects are motivated by “avoiding
central control”.
He originally conceived the web as a
collection of personal pages that link to
each other, rather than being domi-
nated by a handful of giant corpora-
tions. “It was supposed to be individu-
ally empowering,” he said.
He fears that online monopolies
“automatically hamper innovation” and
sees a “huge backlash” among regular
web users who are concerned their data
is being used to manipulate electorates.
Today, Berners-Lee serves as chief
technology officer at Inrupt, which is
developing commercial applications
based on his Solid framework. The tech-
nology is being piloted by the govern-
ment of Flanders and parts of the NHS,
among others. Inrupt is now beginning
its “first serious round” of fundraising,
Berners-Lee said.
“We won’t be able to make a better
world without both tech and policy
changes,” he said, “but fortunately,
they’re happening at the same time.”
Almost $650m worth of ethereum has
been spent on digital artworks such as
NFTs to date, according to Cryptoart
data, which tracks trading volumes.
Several “CryptoPunks”, pixelated por-
traits that form one of the first series of
NFTs, have sold for multimillion-dollar
sums, the most recent going for a record
$11.8m in a Sotheby’s auction last week.
Hatton said the winning bidder of
Berners-Lee’s NFT would “get to own
what would be analogous to the manu-
script” for the web.
Berners-Lee first outlined his idea for
the web in a memo in 1989, but he did
not begin writing the code that imple-
mented it until September 1990.
4 ★ FINANCIAL TIMES Wednesday 16 June 2021

INTERNATIONAL

Pandemic response Tokyo 2020

EU regulator calls for ‘portfolio’ of vaccines Olympics will

Depending too heavily on
single shot not advisable,
says medicines agency
else happens,” Emer Cooke, executive
director of the European Medicines
Agency, said. “You might have a pro-
duction issue, something else might go
Cooke, an Irish pharmacist and EMA
veteran who returned to the top job at
the drugs watchdog last November after
four years at the World Health Organi-
But she insisted the EMA had retained
its independence: “The regulatory role
is an independent scientific role, it has
to be separate from political processes,
need bailout
stressed, while how to use the jabs loc- if games go
ahead without
ally was a decision for member states.
Cooke added that the agency was still
studying the AstraZeneca vaccine to

DONATO PAOLO MANCINI — LONDON

Governments should work with a mix of
different vaccines to stand the best
chance of ending the pandemic, the
head of the European drugs regulator
said, warning that depending too heav-
ily on a single shot or type of vaccine
could be self-defeating.
“We’re going to need a portfolio of
vaccines; one thing that we’ve learnt
from this pandemic is that once you
start making predictions, something
wrong, the best approach is a portfolio
approach.”
Cooke’s comments come as many
wealthier nations have moved from the
adenoviral-vector vaccines developed
by Oxford/AstraZeneca and Johnson &
Johnson, after a link was observed bet-
ween vaccination and a rare type of
blood clot. Instead, places such as the
EU and US are favouring breakthrough
mRNA jabs developed by BioNTech/
Pfizer and Moderna. Last month, the EU
signed a deal for a further 1.8bn doses of
the Pfizer shot for 2022 and 2023.
Virus battle. ‘Quad’ setback
zation, described a challenging eight
months for the regulator.
With the world desperate for a path
out of the pandemic, the agency faced “a
lot of pressure” last year to fast-track ap-
proval of vaccine candidates that were
rushed through trials in record time.
“You see results coming in, they look
good, and people want to know is that
really true,” she said. “Being able to vali-
date the information, really to evaluate
the scientific information in what was a
faster timeframe than we’d ever done
before, it creates its own pressure.”
otherwise I could not go to bed at night.”
The race to get new jabs also meant
that some of the vaccine developers
were new players with less experience of
engaging with regulators. “Some of
them [companies] are more used to
dealing with the EMA than others, and
that does make a difference,” she said.
She declined to be drawn on whether
European governments were too quick
or slow to react to the clot issue first
linked with younger recipients of the
AstraZeneca jab. The EMA’s role was to
understand and evaluate the risks, she
decide whether to update its guidance
on who should receive it, with more
results expected in September. The
EMA’s advice is that the benefits of the
vaccine outweigh its risks in all adult age
groups, but many countries have
restricted its use to older patients only.
“When these things are really rare,
the problem is there’s nothing you can
immediately say that ‘If you have this
[condition or underlying issue], avoid
one vaccine or another’,” she said.
“We’re not at that stage; I’d love to be
there.”
spectators
ROBIN HARDING AND LEO LEWIS
TOKYO
The Tokyo Olympics will need a public
bailout of about $800m if the games
are held behind closed doors as organ-
isers delay a decision on domestic spec-
tators to the last possible moment.
Recent budgets show the Tokyo 2020
organisers are still assuming full stadi-
ums. Having already spent the billions
of yen raised from ticket sales, a new
subsidy from taxpayers would be the
only way to finance refunds, according
to a Financial Times analysis of organis-
ing committee accounts.

India woes weaken alliance’s anti-China drive
New Delhi’s disarray over jab
production gives Beijing an
opportunity to exploit
AMY KAZMIN — NEW DELHI
DEMETRI SEVASTOPULO — WASHINGTON
India’s catastrophic Covid-19 wave has
not only battered its ambitions to be-
come the “pharmacy of the world”, but
it has also undermined a US plan for
New Delhi to play a leading role in coun-
tering Chinese influence in the Indo-
Pacific region.
US president Joe Biden sees a reinvig-
orated Quad, a diplomatic and security
initiative consisting of the US, India,
Japan and Australia, as an integral part
of his strategy to resist Chinese eco-
nomic and military aggression.
But India’s crisis and subsequent vac-
cine export ban have overshadowed the
quartet’s first attempt to prove it can
provide practical help to the region and
is not just an anti-China military alli-
ance. Instead, India’s failure has created
an opportunity that China is exploiting.
“The pandemic is a reality check,
there is no way around it, and it has laid
bare the structural deficiencies of the
Indian state in the crudest way we have
ever seen,” said Constantino Xavier at
New Delhi’s Centre for Social and Eco-
nomic Progress, a think-tank.
Avinash Paliwal of the Soas South
Asia Institute at the University of Lon-
don said the crisis had exposed “the dif-
ferential between the idea of India as a
rising power” and its ability to deliver
on commitments.
“India’s image has been running
ahead of itself,” he added. “But the
world is coming to realise the limits of
India as a rising power. Even Indians
misread their own capabilities.”
Washington had spearheaded a Quad
vaccine initiative that was meant to
entail India producing jabs for south-
east Asia with financial and logistical
support from Washington, Canberra
and Tokyo. New Delhi hailed the plan,
unveiled at a summit in March, as affir-
mation of premier Narendra Modi’s
claim that India was “ready to protect
humanity” with locally made jabs.
“It is a validation of our reputation as
a reliable manufacturer of high-quality
vaccines and pharmaceutical products,”
said Harsh Vardhan Shringla, India’s
foreign secretary.
In line: residents Three months later, India’s standing
queue for as a reliable vaccine supplier and a
vaccines in regional foil to China is in tatters, a casu-
Mumbai. Below, alty of the Modi government’s failure to
India-made jabs secure enough shots for its own. Con-
arrive in Nepal fronted with surging cases and a clam-
Divyakant Solanki/EPA-EFE/
Shutterstock
our for jabs, a de facto ban was put on
commercial vaccine exports by the pri-
vately owned Serum Institute of India.
Its smaller neighbours, Nepal, Bangla-
desh, Bhutan and Sri Lanka, where New
Delhi is vying with China for influence,
were left without supplies. The World
Health Organization-backed Covax
scheme, set up to ensure jabs reached
developing countries, was also hit hard.
“The hype outran the reality,” said
Ashley Tellis at the Carnegie Endow-
ment for International Peace. “The pre-
sumption was that India was this mas-
sive pharmaceutical machine that could
churn out these [shots] in a heartbeat.”
Xavier said the suspension of supplies
to neighbours that had already paid for
the doses was “obviously affecting Ind-
ia’s reputation and reliability”, creating
a void Beijing was moving swiftly to fill.
“China is just coming out much
stronger in the perspective of these
countries,” he said. “If you are unable to
keep your own house in order, you won’t
have much legitimacy to tell others how
to run their affairs.”
Washington insists that “necessary
steps” are being taken to ensure the
Quad can meet its target of providing
1bn doses to Asia by the end of 2022.
“Our discussions with both our part-
ners in the private sector and also in
government suggest we are, knock on
wood, still on track for 2022,” Kurt
Campbell, the White House’s top Asia
official, said last week.
Despite setbacks, Campbell said
Washington still viewed the Quad as
“deeply consequential for the 21st cen-
‘If you are tury”, with a summit, and a new infra-
structure initiative, likely this year.
unable to In the near term, India’s Covid woes
keep your will weigh on the alliance’s ability to
tackle other issues of common concern,
own house such as technology supply chains and
in order, you cyber policy. “There won’t be a great
deal of focus on what the Quad will do on
won’t have tech or security as India will be dis-
much tracted,” said Lisa Curtis at the Washing-
ton-based Center for a New American
legitimacy Security. “It is just a hiccup that we have
to tell others to attribute to the unpredictable nature
of the virus.”
how to run Evan Medeiros at Georgetown Uni-
their affairs’ versity said that “among the Quad part-
ners, India is always going to be the big-
gest challenge” because of its “limited
capabilities” and traditional orientation
towards “non-alignment”.
But the deaths of 21 Indian soldiers in
a clash with Chinese troops along their
shared border cemented New Delhi’s
commitment to the Quad for support.
“This is a country that has shown the
will to shed blood to challenge China,”
Paliwal said. “Despite all its problems
and dysfunction, that is a very powerful
signal . . . Every ally will continue hop-
ing for India to deliver.”
With Japan’s government determined
to press ahead and hold the games from
July 23, the decision to allow fans into
the stadiums has become one of the big-
gest controversies around the Olympics.
Speaking at the G7 summit in Corn-
wall, Yoshihide Suga, the prime minis-
ter, signalled Japan was determined to
allow spectators if it could.
“Taking into account the level of Cov-
id-19 infections, we’ll decide in accord-
ance with the numbers allowed at other
sporting events,” he said.
If spectators are fully or partially
banned, the city of Tokyo will be on the
hook to refund the price of their tickets
after it agreed to underwrite the cost of
staging the delayed games.
Of the ¥668bn ($6.1bn) income the
organising committee has budgeted for
this year, ¥90bn ($822m) is supposed to
come from ticket sales, accounting for
about half of the commercial revenue
for Tokyo 2020. The remainder is
already coming from public funding.
A balance sheet published by Tokyo
2020 last week showed a liability of
¥118.3bn for advance payments it had
received. Most of that sum represents
ticket revenues from the Japanese pub-
lic, who handed over their cash almost
two years ago.
Doctors and public health experts
have advised Japan to hold the Olympics
without spectators to avoid spreading
coronavirus, but organisers and spon-
sors are desperate to keep at least some
fans to get a return on their investment.
Shigeru Omi, the government’s chief
medical adviser on the pandemic, has
urged it to avoid a “festival mood” at the
games. Fans celebrating and drinking
would lead to high-risk socialising that
spreads the disease, he warned.
Haruo Ozaki, chair of the Tokyo Med-
ical Association, said at a recent press
conference: “If it’s going to be held, then
no spectators is the only option.”
Japan is reporting 300-400 new cases
every day and is due to remain in a state
of emergency until June 20. Olympic
organisers have delayed a decision on
spectators until the end of June, hoping
the situation will have improved.
Sponsors are eager to have spectators,
since they gave away tickets to the
games in marketing events.
“A big issue for sponsors is whether
they can allow the winners of the con-
sumer campaigns they started running
ahead of the games last year to attend,”
said one marketing executive who is
advising several Tokyo 2020 sponsors.
“Most of the sponsors have already
profited a lot from ticket campaigns. If
these tickets are cancelled, they are
going to face a lot of backlash.”

Latin America Diplomatic tension

Castillo stands on verge of stunning victory in Peru election
GIDEON LONG — CHOTA
With his huge straw hat and big yellow
pencil, Pedro Castillo has emerged
from nowhere to become one of the
most recognisable figures in the reg-
ion’s politics recently, and appears
poised to become Peru’s next leader.
But beyond the eye-catching photo-
graphs of him ploughing fields in the
Andes with oxen, stoking the fire in his
modest dwelling and riding to his local
polling station on horseback, Castillo
remains a largely unknown quantity.
He gives few interviews. He has never
worked in government and until now
was best known for leading a teachers’
strike in 2017. And yet, results from this
month’s presidential election suggest he
has secured an epic victory. With just a
handful of disputed votes left to count,
he leads rival Keiko Fujimori by 50,000;
50.1 per cent to 49.9. If her claims of
electoral fraud are dismissed and the
result is confirmed, he will be sworn in
on July 28 as one of the most unlikely
leaders in Peru’s rich history.
Much of the confusion surrounding
Castillo stems from his flip-flopping on
policy. One minute he was a radical tub-
thumper, determined to nationalise
companies and rip up Peru’s 1993 const-
itution; the next he was trying to ass-
uage the terrified elite they had nothing
to fear. No one knows what to expect.
He knows how to fire up a crowd. His
simple message, “no more poor people
in a rich country”, resonated with mil-
lions of downtrodden voters in the
Andes and Amazon basin.
“He’s one of us,” said Edith Vega as she
shopped in Chota, near where Castillo
was born. “He knows what our prob-
lems are, and they’re the problems that
most Peruvians face.”
In the presidential debates, Castillo
was calm and polite but offered little in
the way of policy. In his few local media
interviews, he was sometimes out of his
depth, particularly on the economy.
“Pedro Castillo is a disaster when he
has to explain his ideas, but he’s sensa-
tional when he reduces his message to a
single phrase: the dispossessed against
those who have everything,” said Rodol-
fo Rojas, a political analyst at consul-
tancy Sequoia in Lima. “He’s a teacher
who had a poor education and it shows;
he’s had problems explaining the differ-
ence between the national budget and
gross domestic product.”
Castillo was born in 1969 in Puña in
the Andean region of Cajamarca, by
some measures the poorest in Peru.
Modesto Montoya, a Peruvian scien-
tist and part of Castillo’s team of advis-
ers, said: “In my town I knew children
like Pedro who walked for hours to get to
school. When they came into contact
with the cities it made them aware of the
injustices and inequality of opportuni-
‘He knows what our
problems are, and they’re
the problems that most
Peruvians face’
ties that still exist. That’s what led Pedro
to want to change the country.”
The third of nine children, Castillo
helped his parents tend their crops,
trained as a teacher and married his
childhood sweetheart, with whom he
has two children. He taught in a rural
primary school and became a rondero,
the peasant nightwatchmen who, in the
1970s and 1980s, formed their own com-
munal protection groups, patrolling the
Andes and meting out sometimes brutal
justice, including to leftist guerrillas
from the Maoist Shining Path group.
People who know him say that like
many mountain villagers he is a social
conservative. “It’s ingrained in the
Andean culture,” one said, adding that
Castillo is unlikely to champion gay
rights, women’s liberation or a relaxa-
tion of the abortion laws.
His first venture into politics came in
2002 when he failed to get a mayoral
post with Perú Posible (Possible Peru),
the party of then-president Alejandro
Toledo. Fifteen years later, he reappear-
ed leading the teachers’ union.
Castillo’s poor roots have led some to
compare him to Bolivia’s former presi-
dent, Evo Morales. But Montoya says: “I
see him more as a Pepe Mujica,” refer-
ring to Uruguay’s former leftist leader.
The problem is knowing what he
would do in power. While he denies he is
a communist, his party, Free Peru, is led
by a Marxist ideologue, Vladimir Cer-
rón. In March, Castillo said that as presi-
dent he would squeeze more money
from foreign mining companies.
Consultant Teneo said he would have
“a shaky mandate . . . a lack of experi-
ence and a tendency to improvise, an
uncosted policy programme . . . a weak
position in Congress and a radical rival
to his leadership within his party”.
Beijing flies record number of
military jets close to Taiwan
KATHRIN HILLE — TAIPEI
China flew 28 military aircraft into Tai-
wan’s air defence buffer zone yesterday
in its largest such incursion, according
to Taipei officials, as Beijing expresses
anger over warnings from western
countries and their allies about its mili-
tary pressure on the island.
The flights involved 20 fighter jets and
four nuclear-capable bombers along-
side anti-submarine warfare and early-
warning aircraft, the Taiwanese air
force said. Previously, the largest incur-
sion had featured 25 Chinese military
aircraft on a single day in April.
The G7 group of developed economies
issued a final communiqué on Sunday
following its UK summit, in which it
highlighted “the importance of peace
and stability across the Taiwan Strait”
and called for a peaceful resolution of
issues between China and Taiwan.
The remarks — the first time a G7
communiqué has referred to Taiwan —
were the latest in a string of warnings at
international forums against rising ten-
sion in the Taiwan Strait. In April, US
President Joe Biden and Japan’s prime
minister Yoshihide Suga issued a joint
statement that stressed the importance
of peace in the region.
Taiwan tensions are one of a range of
China-related issues over which west-
ern countries and their partners regu-
larly express concern. Others include
Beijing’s treatment of the Uyghur
minority, its undermining of Hong
Kong’s autonomy and its aggressive
behaviour in the South and East China
Seas. Nato leaders this week warned
that China posed “systemic challenges”
to the rules-based international order.
Beijing has reacted angrily. This week,
it accused the G7 and Nato of “slander”.
China claims Taiwan as part of its ter-
ritory and has threatened to attack if
Taipei refuses to submit to its control.
Over the past year, Beijing has stepped
up military pressure, with frequent
flights by its air force into Taiwan’s air
defence identification zone (ADIZ).
An ADIZ is not sovereign airspace but
an area some countries demarcate to
define where they consider unan-
nounced approaches as a security risk.
Wednesday 16 June 2021 ★ FINANCIAL TIMES 5

Infrastructure shift Post-pandemic pressures will force capital-heavy business models to the fore y MARKETS INSIGHT, PAGE 9

DraftKings dips Rapid recovery Chanel finance chief ‘happy to

be wrong’ after luxury group shrugs off virus
Ikea fined
€1m over
as Hindenburg French spying
scandal
report alleges ANNA GROSS — PARIS
RICHARD MILNE — OSLO

illicit gambling
A French court has ordered Ikea to pay
€1m in fines and convicted the former
chief executive of its French business
for organising a spying operation that
ensnared staff.
The criminal court in Versailles ruled

3 Short seller takes aim at Spac group yesterday that Ikea used private detec-
tives and “fraudulent methods” to dig

3 Firm cites ex-staff for basis of claims
SARA GERMANO AND ORTENCA ALIAJ
NEW YORK
A report by Hindenburg Research has
claimed that DraftKings’ technology
subsidiary earns as much as half its rev-
enues from illegal gambling markets,
the latest move by the short seller to tar-
get companies taken public through a
special-purpose acquisition company.
Shares of the sports-betting group fell
more than 7 per cent after the report’s
release yesterday. DraftKings’ April
2020 public listing is widely considered
as an early accelerant of the Spac boom.
It merged with the blank-cheque group
Diamond Eagle as well as a B2B gaming
services company called SBTech.
In the report, Hindenburg said that
SBTech has extensive history in operat-
DraftKings has emerged
as one of the most
successful businesses to
go public through a Spac
ing in illicit gambling markets, includ-
ing in China and Iran, and that as much
as half of its revenues come from juris-
dictions where the activity is not legal.
Hindenburg said it had taken a short
position in DraftKings, meaning it prof-
its if DraftKings’ shares fall. The firm
cited interviews with an unspecified
number of ex-employees, its own analy-
ses of Securities and Exchange Commis-
sion filings and back-end internet infra-
structure as evidence for its claims.
DraftKings did not immediately
return a request for comment.
DraftKings has emerged as one of the
most successful businesses to go public
through a Spac, with its shares up more
than 400 per cent from the $10 price at
which blank-cheque companies list.
Hindenburg said that company insid-
ers had benefited from the huge surge in
DraftKings’ share price by selling a com-
bined $1.4bn worth of stock.
According to filings with the SEC
reviewed by the Financial Times, Sha-
lom Meckenzie, the founder of SBTech,
has sold out of or transferred almost his
entire 11 per cent stake in the company.
Meckenzie has sold close to $568m
worth of shares starting in June 2020,
and last month transferred the majority
of his remaining stake to a trust for his
family, which at the current share price
is worth almost $1bn.
Meckenzie could not immediately be
reached for comment. Citing evidence
from an Oregon public records request
and interviews with former employees,
the short seller report claimed that
SBTech operated in Iran for as long as
five years, and continues to operate in
China. SBTech has previously denied
that it conducted business in Iran,
according to a statement provided in
2019 to the Statesman Journal newspa-
per in Salem, Oregon.
DraftKings started as a daily fantasy-
sports outfit before expanding to offer
sports-betting services, particularly
after the US Supreme Court struck
down a federal ban on sports wagers in
2018. Since then, more than half of US
states have legalised the practice, spark-
ing a gold rush among global betting
operators to focus on the US market.
The Boston-based company has also
benefited from the sharp rise in online
gambling during the pandemic. As
DraftKings has grown over the past year,
the company has added A-list celebri-
ties to its board of directors, including
basketball legend Michael Jordan and
supermodel Gisele Bündchen.
Hindenburg has homed in on compa-
nies that have listed via Spacs, including
electric vehicle start-up Nikola. The
short seller has also taken aim at Lords-
town Motors, an electric-truck maker
that has recently warned it could fail.
A Chanel store in Hong Kong, where shoppers have returned with enthusiasm — Budrul Chukrut/Sopa Images/LightRocket/Getty
LEILA ABBOUD — PARIS
Chanel is on track to lift revenues by
“double digits” this year compared
with pre-pandemic levels and repair
its margins, in another sign of how
luxury’s biggest players have shaken
off the crisis far earlier than feared.
With such a performance, the pri-
vately held French luxury house
known for its Number 5 perfume and
quilted bags would confirm its status
as one of the strongest brands in the
sector, alongside LVMH’s Louis Vuit-
ton and Hermès. They have benefited
as consumers in China and the US
have splashed out on upmarket hand-
bags and fashion in recent months,
prompting investors to send luxury
valuations to record highs.
“I’ve never been so happy to be
wrong about a forecast,” Philippe
Blondiaux, chief financial officer, said
yesterday of his prediction that Cov-
id-19 would lead to two difficult years
for the sector. “There has been strong
momentum with customers since
September or October, and it has only
accelerated in 2021. We expect sales
this year will be 35 per cent over 2020,
and double digits above 2019, and we
are confident we can rebuild margins
very close to 2019 levels.”
Sales growth was strong even
though about 10 per cent of its 206
boutiques around the world remain
closed because of the pandemic.
Chanel sells only beauty products and
fragrances online so could not rely on
digital revenues during lockdowns.
Revenue for 2020 fell 18 per cent to
$10.1bn on a comparable basis at con-
stant currencies, roughly in line with
the fall at LVMH and Kering, but
worse than Hermès. Operating profit
dropped 41 per cent to $2bn, a steeper
slide than at those same rivals.
The luxury house has been in a
transition since the death of Karl
Lagerfeld in 2019, while Virginie
Viard, his successor as creative direc-
tor, puts her mark on the collections.
Asked about the profit underper-
formance, Blondiaux said Chanel had
invested throughout the crisis, had
not cut costs dramatically nor made
deep job cuts or relied on state aid.
Capital expenditure rose to its high-
est level last year at $1.1bn, about half
of it used to “seize opportunities” in
real estate, such as buying the flagship
store on Bond Street in London.
Chinese consumers’ quick return to
conspicuous consumption last year
has served to confirm how they
remain the sector’s most important
growth engine. Yet Blondiaux said
Chanel wanted to proceed carefully
with expansion in China.
“Luxury is about exclusivity and
scarcity and offering unique prod-
ucts,” he said. “In China, we have 15
fashion boutiques, and we will open
more at a relatively moderate pace of
one or two a year.”
up information on employees and job
applicants between 2009 and 2012,
according to Agence France-Presse.
Prosecutors were pushing for a €2m
fine against the biggest furniture
retailer, which is owned by the Ingka
Group, as well as a prison sentence for
the French subsidiary’s former chief
executive, Jean-Louis Baillot.
Baillot, who was at the helm of Ikea
France from 1996 to 2002, was found
guilty and received a two-year sus-
pended prison sentence along with a
€50,000 fine.
Baillot “is very shocked by this judg-
ment”, his lawyer, François Saint-Pierre,
said. “He denies having given instruc-
tions to spy on Ikea employees, and he
plans to appeal.”
The case has sparked public interest
in France, although it centres on events
from a decade ago, because it feeds into
tensions between employers and unions
and concerns about the misuse of per-
sonal data and privacy rights.
The scandal came to light in 2012,
when police raided Ikea’s French head-
quarters at Yvelines, near Versailles.
The officials seized documents and
checked computers after a preliminary
judicial inquiry had been opened into
allegations of illegal surveillance made
by members of two trade union groups.
The court found yesterday that man-
agement used a private security firm,
Eirpace, to obtain police records ille-
gally and collect personal data.
Jean-François Paris, who was head of
risk and conducted mass checks of
employees for Ikea France from 2002 to
2012, was sentenced to an 18-month
suspended prison term and given a
€10,000 fine, according to AFP.
Critics said at the time that Ikea’s
secretive culture had been strained by
rapid expansion into new countries. The
company also faced a bribery scandal in
Russia at about the same time as its
problems in France.
But it has continued to open up over
the past decade, giving greater insight
into its business and balance sheet.

Sponsors’ hopes of Olympic-size marketing gains put to the torch

situation is, NEC was unexpectedly
INSIDE BUSINESS drawn into a scandal that is revealing of
how much the Olympics have raised the
ASIA stakes for both the Japanese govern-
ment and businesses.
Kana Since Friday, Takuya Hirai, the digital
minister, has been the talk of Japanese
Inagaki television shows following a leaked
recording obtained by the Asahi news-
paper where he is heard urging his sub-
ordinates to use “threats” against the
about whether association with the
Olympics is worth their money.
The games are set to be the most heav-
ily sponsored sporting event in history,
but even before it was postponed owing
to the pandemic, some chief executives
had privately expressed doubts about
the returns from their investment.
While the decision to participate in
what was considered a national project
initially appeared low-risk, companies

I
n 1964, the Tokyo Olympics was
watched via the first worldwide sat-
ellite broadcast through a gigantic
antenna developed by NEC.
In the Olympics starting in late
July, NEC will again be deploying
new technology. Its facial-recognition
system will be installed at Olympic sta-
diums to identify athletes and staff, as
the government pushes ahead with
what it has promised will be a “safe and
secure” games despite the pandemic.
However, there will probably be
little promotion by NEC or by any of
the other Olympic sponsors of tech
used in the games this summer, whether
it be related to Toyota’s self-driving
vehicles or to security robots developed
by Secom.
As one sponsor has grimly acknowl-
edged, silence is the best marketing
strategy to navigate a toxic environ-
ment where any association with the
games could be damaging to the corpo-
rate brand.
Another chief executive quietly
retracted a comment he made to the
Financial Times a few months ago that
he loved sport and wanted the Olympics
to go ahead, saying that what would
have been a harmless comment in any
other context was inappropriate in the
light of lingering public opposition to
the games.
In a further sign of how hazardous the
chair of NEC.
One comment from the April online
conference stands out: “If they grumble
too much about this Olympics, we will
completely sideline them.”
At the centre of the incident is a $66m
contract — it appears to be unrelated to
the Olympics sponsorship — signed
between the government and a consor-
tium including NEC to develop a smart-
phone app to track
the health of for- Silence is seen as the best
eign spectators and
other staff associ- strategy to navigate a toxic
ate d with the environment where any
games.
With the deci- association with the games
sion to ban over- risks damaging brands
seas spectators
from the Tokyo Olympics, the govern-
ment has asked to cancel its contract
with NEC.
Hirai has since admitted that his com-
ments were inappropriate, but has
denied they were made directly against
NEC. He has defended the use of lan-
guage as a reflection of his “strong
resolve” to cut costs.
NEC has declined to comment beyond
confirming that it has accepted a change
in contract.
The incident may just be a gaffe by a
minister, but for NEC and the 46 other
Japanese companies that collectively
paid more than $3bn to back the games,
there are serious questions to be asked
accepted non-exclusivity contracts, cre-
ating a situation where direct rivals,
such as Japan Airlines and ANA, were
both sponsors.
When Tokyo hosted the Olympics in
1964, official and exclusive corporate
sponsorships had not yet been estab-
lished and it was almost the natural
thing to do for companies to take part in
Japan’s postwar moment.
That patriotic spirit will no longer be
sufficient to justify their sponsorship for
the games this year.
To be sure, public sentiment may
change by the time the games are
held in July as the vaccination pro-
gramme gathers speed, and companies
may — albeit belatedly — be able to
derive the marketing benefits they had
hoped for.
But even if they manage to navigate
the games in Tokyo safely, a minefield
lies ahead for Olympics sponsors such as
Toyota and Panasonic with the 2022
Beijing winter Olympics. Companies are
likely to come under activist pressure to
take a stance against China’s human
rights abuses in Xinjiang.
For too long, Japanese companies
have considered sport simply as some-
thing they need to support. A greater
sophistication is called for as Olympics
sponsorship becomes even more politi-
cal and contentious.
kana.inagaki@ft.com
6 ★
Insurance
Biggest British investor blacklists AIG
LGIM cites ‘insufficient’
policies in place over
climate change risk
CAMILLA HODGSON — LONDON
Britain’s biggest investor has dropped
AIG from some of its funds over con-
cerns that the US-based insurance
group has “insufficient” policies in place
over climate change risks.
Legal and General Investment Man-
agement said yesterday that it would
divest several of its holdings from its
actively managed portfolios after
“unsatisfactory responses” to and
“breaches of red lines” around an
involvement in coal, carbon disclosures
and deforestation.
Airlines
Emirates
suffers $5.5bn
loss after year
of disruption
SIMEON KERR
Emirates posted an annual loss of
$5.5bn in its last financial year as the
“tremendous toll” of the coronavirus
pandemic forced the airline to slash its
workforce and turn to its Dubai gov-
ernment shareholder for support.
The carrier, which had made a $288m
profit in the previous financial year, said
that annual revenue fell 66 per cent to
$8.4bn to the end of March as capacity
declined 58 per cent.
The group was hit hard by travel
restrictions, which included the United
Arab Emirates’ suspension of passenger
services for almost two months from
March 2020.
The airline carried 6.6m passengers in
2020-21, down 88 per cent compared
with the previous financial year.
Emirates gradually restored its pas-
senger network from the middle of June
last year to more than 120 destinations
by the end of March.
Sheikh Ahmed bin Saeed Al Mak-
toum, Emirates’ chair and chief execu-
tive, said that the carrier hoped to
restore full operating capacity “as
quickly as possible”.
He said that the “fundamental ingre-
dients” of Emirates’ success remained
unchanged and that the airline would
work with the government to deliver a
return of activity to an economy focused
on trade and tourism.
“No one knows when the pandemic
will be over but we know recovery will
be patchy,” he said. “Economies and
companies that entered pandemic
times in a strong position will be better
placed to bounce back.”
Emirates Group, which also includes
aircraft ground services, posted a loss of
$6bn, compared with a $456m profit for
the previous financial year. The group’s
cash position declined by about $1.6bn
to $5.4bn over the year.
The airline received an injection of
$3.1bn from its owner, the government,
allowing it to sustain operations, but for
the first time in its history redundancies
were implemented across all aspects of
its business to reduce costs in line with
reduced capacity.
The number of staff at the group
shrank 31 per cent to about 75,000.
Revenues at the airline’s cargo opera-
tions rose 53 per cent to $4.7bn on
strong demand from shippers.
Flexible working
Morgan Stanley insists on return to the office Loeb builds ‘substantial’ position in Vivendi
ALYSON VELATI — NEW YORK
Morgan Stanley chief executive James
Gorman sent a tough message to New
York-based employees who do not
want to return to the office, arguing
that if they are comfortable dining out
in the city, then they should feel safe
working at the bank’s headquarters.
“If you can go into a restaurant in New
York City, you can come into the office
and we want you in the office,” he said at
a financial services conference. Gorman
AIG was dropped from the £58bn
portfolio for having no policy on ther-
mal coal or on disclosure of carbon
emissions associated with its invest-
ments, which LGIM said were “red
lines” for the banks and insurers it
invested in.
“We’ve been engaging with AIG on
these very topics since 2017, so it’s been
four years of us making the same
request of them,” said Yasmine Svan,
senior sustainability analyst at LGIM.
“We want to give companies a suffi-
cient amount of time to act on our
request. But we’re not just here to chat
for years.”
Insurers have come under pressure to
align activities with decarbonisation
efforts and take responsibility for car-
bon-intensive businesses they are
Rugby reset
CVC looks
to repackage
global game
Jordan Larmour of Leinster is
tackled by Ioan Davies of the
Dragons during a PRO14 match in
Dublin. The tournament is
undergoing an ambitious revamp
Harry Murphy/Sportsfile via Getty
said that the bank had not yet started
“dictating” that staff turn up for work,
unlike Goldman Sachs, which this week
required its employees to return to the
office.
However, he said he had sent a “direc-
tionally very strong” message that he
wants workers based at its 1585 Broad-
way building to be back at their desks.
“[By] Labor Day, I’ll be very disap-
pointed if people haven’t found their
way into the office and then we’ll have a
different kind of conversation,” Gorman
added, referring to the September 6
public holiday.
Gorman said the bank had learnt it
could operate “with a little more flexi-
bility” during the coronavirus pan-
demic. But he signalled that he would
take a dim view of employees who did
not work regularly in the office, and
especially of those who wanted to do
their job remotely from an out-of-state
location such as Florida or Colorado.
“If you want to get paid New York
FINANCIAL TIMES
COMPANIES & MARKETS
involved with. This year protesters have
targeted insurers of coal projects in
campaigns against AIG and Lloyd’s,
dumping coal outside the headquarters
of the insurance market.
AIG provides insurance to the coal
industry and other fossil fuel projects.
The company declined to comment.
Whether to engage with or divest
from groups deemed climate policy lag-
gards has become a vigorous argument,
spurred by successes for activists such
as small fund Engine No. 1, which won
two board seats at ExxonMobil in a
quest for more transparency on climate
risks after getting the support of larger
investors such as BlackRock and Van-
guard as well as Calpers and Calstrs.
LGIM said it would also drop from its
active funds the Industrial and Com-
The PRO14 club rugby competition
is tochange its name, add more South
African teams and has agreed new
broadcast deals, in the first sign of how
private equity firm CVC Capital
Partners aims to revamp the sport.
The buyout group paid £120m for a
28 per cent stake in the tournament
last year, one of a series of rugby deals
as it seeks to reshape the global game
by changing how it is sold to fans,
sponsors and broadcasters.
The annual tournament featuring
teams from Ireland, Scotland, Wales,
Italy and South Africa is rebranding to
the United Rugby Championship, said
people familiar with the decision.
These people said it has also secured
new television deals for the start of the
2021/22 season in September,
including with the BBC in the UK, RTE
in Ireland and SuperSport in South
Africa. The organisers will also launch
a new global subscription streaming
service for fans.
Though the aim is for most matches
to be screened on free-to-air TV to
reach the largest possible audience, the
broadcast deals will help boost annual
revenues for the competition to £55m
from £25m last year.
The tournament may still struggle to
rates, you work in New York,” he added.
In March last year, Gorman was diag-
nosed with Covid-19 and made a full
recovery. Since July 2020, he has been
turning up for work and gradually
increasing the number of days he
spends in the office. “My leadership
style has been sort of very deliberate,”
he said. “One day a week from
July . . . Now I’m at four days.”
However, employees located in areas
with high infection rates, such as India,
were not expected to report to the office,
Gorman said.
He said that returning to the office
was particularly important for junior
members of staff who were training on
the job. “[The office is] where we teach,
where our interns learn.”
More than 90 per cent of Morgan
Stanley’s employees who were already
working in its offices were now vacci-
nated, Gorman said, adding that he
expected that proportion to increase to
98 per cent.
mercial Bank of China, the Pennsylva-
nia energy group PPL and China Meng-
niu Dairy. It has previously divested
from companies including China Con-
struction Bank and ExxonMobil.
However, the moves by LGIM are lim-
ited. Legal and General remains
invested in AIG and is a top 20 share-
holder in ExxonMobil, via its much
larger passive funds business which
invests based on the inclusion of those
companies in broader stock exchange
indices or trackers.
Svan said the group would divest from
companies that did not have credible
climate plans where it was possible, but
that doing so was not an option for its
passive funds that track indices com-
piled by other providers.
“The only thing that we can do is build
secure new viewers and revenues,
however. Rugby is dominated by
interest in competitions such as
the Six Nations in Europe, the Rugby
Championship in the southern
hemisphere and the Rugby World Cup.
According to people close to the
decision, the United Rugby
Championship will play fewer weekend
matches when international fixtures
are held and star club players represent
their national teams.
Alongside its stake in PRO14, CVC
has invested in England’s Premiership
Rugby and the Six Nations, Europe’s
top national team rugby tournament.
Its plans for the United Rugby
Championship point to how CVC
intends to act as a powerbroker
between the disparate groups that run
the sport in order to enhance the value
of its investments.
The Luxembourg-based group, a
former owner of Formula One and
Moto GP, has tended to take minority
shares in sports competitions, seeking
commercial control in a way that will
allow it to bundle together TV rights
for different competitions and sell
them to broadcasters.
As well as rugby, the buyout group
has acquired a stake in volleyball’s
Travel & leisure
LEILA ABBOUD — PARIS
ORTENCA ALIAJ — NEW YORK
Activist Third Point has built a stake in
Vivendi, controlled by Vincent Bolloré,
as a shareholder vote looms on its plan
to spin out Universal Music Group.
The New York-based hedge fund run by
Daniel Loeb had built a “substantial”
position in the French media conglom-
erate over the past few months, said a
source familiar with the fund.
Vivendi said it had no information
about the stake at this stage. Third Point
declined to comment on how it planned
to use its holding.
Its investment comes as Vivendi
hashes out a deal to sell a stake in Uni-
versal Music to Bill Ackman’s blank-
cheque company. If Loeb objects to the
deal, it would pit two titans of the invest-
ing world against each other.
Pershing Square Tontine Holdings, a
special purpose acquisition group set up
by Ackman, said earlier this month it
alternatives and offer them to clients,
and try and shift assets into these [cli-
mate-aligned] products,” while public
scrutiny should push companies to
change, she said.
In divesting from certain companies
on climate grounds, “we’re not making
any assessment or judgment on the
company’s short-term investment out-
look”, Svan said. Instead, the move
reflected LGIM’s commitment to “align-
ing our assets with net zero”.
Yesterday, LGIM said US food retailer
Kroger would be reinstated to various
funds because it had improved its defor-
estation policies and disclosures. Rein-
stating a company was “sticking our
neck out”, so the group looked for evi-
dence of change rather than “just a com-
mitment”, said Svan.
global governing body and held
recent investment talks with
companies including the ATP and
WTP, the men’s and women’s tennis
tours, Italy’s Serie A football league,
and US basketball franchise San
Antonio Spurs.
The United Rugby Championship
will expand from 14 to 16 teams.
Two South African sides, the
Southern Kings and Cheetahs, have
left the competition but will be
replaced by four of the biggest
teams in the country: the Lions,
Stormers, Sharks and Bulls.
Over time, South Africa Rugby,
the country’s union, will also
become a shareholder in the
competition, tying it closer to some
of Europe’s leading unions.
CVC has also discussed investing
in South Africa Rugby and is
engaged in talks to create a Club
World Cup tournament of the
world’s top club rugby teams.
CVC’s recent influence across
rugby has helped to advance the
talks and a new global contest could
launch as early as 2024, according to
people close to the discussions.
Murad Ahmed and Kaye Wiggins in
London
was in talks to buy a 10 per cent stake in
Universal Music, the label behind Lady
Gaga and Taylor Swift, for about $4.1bn.
The deal would value Universal at
more than $40bn. However, unlike tra-
ditional Spac mergers, it would not take
the group public. Vivendi instead plans
to spin out Universal Music and distrib-
ute 60 per cent of the group’s share capi-
tal to investors. Universal would then be
listed on Euronext Amsterdam in the
third quarter of 2021.
A vote is looming on the plan to spin
out Universal, behind Taylor Swift
Wednesday 16 June 2021
Pharmaceuticals
AstraZeneca
antibody
treatment fails
to hit main
trial target
HANNAH KUCHLER AND OLIVER RALPH
LONDON
AstraZeneca’s Covid-19 antibody treat-
ment failed to meet its main targets in
its latest trial, while showing it could
prevent people exposed to the virus
from developing the disease if given
early enough.
The phase 3 trial of the AZD7442 treat-
ment found that it was not significantly
more effective than a placebo. Of 1,121
participants who had had contact with
an infected person, 23 out of the 749
who were given the drug developed
symptomatic Covid-19, compared with
17 of the 372 on the placebo.
The treatment is separate from the
company’s vaccines, which are being
used worldwide to protect against coro-
navirus.
AstraZeneca has agreed to supply up
to 700,000 doses of the antibody treat-
ment to the US government, worth up to
$726m.
However, the AZD7442 results were
more encouraging when it was given to
patients who had not yet tested positive
for the virus, reducing the risk of devel-
oping the condition by 73 per cent.
“While this trial did not meet the pri-
mary endpoint against symptomatic ill-
ness, we are encouraged by the protec-
tion seen in the PCR-negative partici-
pants following treatment with
AZD7442,” said Mene Pangalos, execu-
‘There is still a significant
need for prevention and
treatment options for
certain populations’
tive vice-president of biopharmaceuti-
cals research and development at Astra-
Zeneca.
The treatment is in several late-stage
trials with a combined 9,000 partici-
pants. Myron Levin, a professor at the
University of Colorado School of Medi-
cine, and principal investigator on the
trial, said another trial called Provent
would give more data on this patient
population.
“While Covid-19 vaccination efforts
have been successful, there is still a sig-
nificant need for prevention and treat-
ment options for certain populations,
including those unable to be vaccinated
or those who may have an inadequate
response to vaccination,” Levin said.
Antibody treatments from companies
including Regeneron and Eli Lilly have
been used to bolster the immune
response of patients with Covid-19.
Donald Trump, the former US presi-
dent, was among recipients of the
Regeneron treatment.
But they could also be given prophy-
lactically to people who might develop
the disease. In a trial of residents and
staff at long-term care facilities, Eli
Lilly’s antibody bamlanivimab reduced
the risk of infection by 80 per cent in
participants who tested negative.
The search for drugs to treat Covid-19
has been less fruitful than the rapid
development of many vaccines against
the disease, with doubts about how well
the antiviral remdesivir works.
Antibody treatments have been one
bright spot but they are difficult to
administer early enough in the course of
the disease to make a difference. With
widespread vaccination in the west,
demand for these treatments is likely to
fall — and they are often too expensive
for developing countries.
Vivendi shareholders will vote on the
Universal Music distribution on June 22.
Some investors, including activist
hedge fund Bluebell, have already
voiced concerns about the pro-
posal. Marco Taricco, co-founder of
Bluebell, which owns a small stake in
Vivendi, has said the valuation “appears
underwhelming”. Bluebell sent letters
to Vivendi in May on separating the
group’s biggest asset.
The London-based fund said the spin-
off was a good idea in principle but ques-
tioned the structure, known as a divi-
dend in kind, which it said would hit
minority shareholders with significant
tax bills. Bluebell has asked that Vivendi
pay shareholders an additional extraor-
dinary cash dividend of about €3.3bn.
Artisan Partners, another Vivendi
shareholder, has reportedly come out
against the proposed deal with Ackman,
echoing Bluebell’s concerns over the tax
bill, according to Bloomberg.
See Lex
Wednesday 16 June 2021
Shipping seeks a sea change over emissions
Heavily polluting industry has taken first step to cut carbon but must go much further to satisfy climate demands
HARRY DEMPSEY — LONDON
Shipping’s global regulator aims to seal
consensus this week on measures to cut
carbon dioxide emissions this decade,
which would keep alive the possibility of
a transformational international tax on
the polluting industry.
Delegates from 174 countries plus a
host of industry observers at the meet-
ing of the International Maritime
Organization (IMO), the powerful UN
body that regulates shipping, have been
in week-long discussions over measures
to reduce the fleet’s carbon intensity by
40 per cent by 2030 compared with
2008 levels.
Adoption of the plan would also mark
the first concrete step to implement a
strategy to cut global shipping’s emis-
sions by at least 50 per cent by 2050.
Maritime transport, the lifeblood of
global trade, pumps out about 2.4 per
cent of annual CO2 emissions. It is tricky
to decarbonise because clean fuels such
as green hydrogen, ammonia or metha-
nol are not widely available and pres-
ently cost far more than fossil fuels.
Stakes are high for large shipping
companies including Maersk, CMA
CGM and Cosco, as well as commodity
traders such as Trafigura and Cargill
that have strived to drive transport
costs down, with decarbonisation esti-
mated to cost trillions of dollars.
The real importance of the meeting,
in the view of many officials, hinges on
whether the member states can emerge
without divisions on climate change
that would make an agreement on a car-
bon levy on international shipping an
even more formidable challenge.
“Adoption of actual short-term meas-
ures this next week is another critical
time,” said Kitack Lim, secretary-gen-
eral of the IMO. “Without this one, we
cannot develop our further ambition by
2023,”
The so-called short-term framework
includes two parts: an energy efficiency
index for existing ships, plus a require-
ment to improve carbon intensity of
vessels between 2023 and 2030. The lat-
ter connects CO2 emissions to cargo vol-
umes — which are likely to rise — rather
than assessing absolute emissions.
Members on Monday agreed a 2 per
cent annual reduction in carbon inten-
sity for ships between 2023 and 2026.
Environmental groups have
denounced the measures as under-
whelming and verging on inconsequen-
tial. One European delegation adviser
Transport
Brittany bets on electric ferry
to flit across English Channel
PHILIP GEORGIADIS AND SYLVIA PFEIFER
Electric ferries could be skimming just
above the surface of the English Chan-
nel by the end of the decade under
plans unveiled by Brittany Ferries.
The ferry operator has signed a letter of
intent with a US technology start-up to
explore the operation of “seaglider”
services between the UK and France.
The agreement with Regent of Boston
includes an option for the delivery in
2028 of two flying ferries that can carry
155 passengers at speeds of 180mph,
Brittany said yesterday.
Transport companies are increasingly
willing to explore unproven new tech-
155 180mph
Passengers that Speed that the
each Regent of ‘seaglider’ craft
Boston ferry will will be capable
be able to carry of reaching
nologies, particularly to help cut carbon
emissions.
American Airlines, Virgin Atlantic
and Avolon, the aircraft lessor, last week
made a preliminary commitment to buy
up to 1,000 electric air taxis from a Brit-
ish start-up, while United Airlines has
ordered 15 supersonic aircraft from
Boom Supersonic, the US start-up.
Seagliders fly on a cushion of air above
the waves, similar to hovercraft in a con-
cept based on the ekranoplan Soviet
naval craft developed in the late 1980s.
They were known as “Caspian Sea mon-
sters” but never made it into wide-
spread use.
Plane sailing: Brittany Ferries’ vision
of the sea-skimming craft
★ FINANCIAL TIMES 7
COMPANIES & MARKETS
within the industry itself. This month
Maersk, the world’s largest container
shipping group, suggested a $50 per CO2
tonne tax starting around 2027 that
rises to more than $150.
The industry has also proposed a pay-
ment of $2 per fuel tonne, equivalent to
$0.7 per CO2 tonne, to create a $5bn pool
for research and development for clean
fuels. But many delegates are concerned
that this will be used as an excuse to
delay the introduction of a substantial
carbon tax.
An unlikely pair of candidates — the
Marshall Islands and the Solomon
Islands — have put forward the only pro-
posal for a meaningful financial incen-
tive to decarbonise shipping at $100 per
CO2 tonne. The Marshall Islands is
emblematic of the tensions. Its islands
are mostly low-lying and at risk from
global warming. At the same time, it has
a large shipping registry and has typi-
cally aligned itself with the industry
interests.
“If we look at IMO as a huge ship, then
we have to start turning now from the
iceberg ahead,” said Albon Ishoda, a del-
egate from the Marshall Islands. “If
we’re allowed to have a transforma-
tional discussion, then that would drive
Largest container shipping groups Long journey to greener fuels progress on the ground.”
Operator Fleet capacity, TEU* (m) Country Global energy consumption (m tonnes of oil equivalent) Lim of the IMO said the key to avoid-
ing a confrontation over a tax was in
0 1 2 3 4 250
Hydrogen how the money raised would be used. “If
Maersk Denmark Ammonia everybody thinks we can benefit from
Electricity 200 market-based measures, if it’s by the
MSC Italy/Switzerland Gas developing side as well, then this will
Biofuels actually provide momentum.”
CMA CGM France Oil 150
Shipping groups are likely to also
Cosco Group China stake their claim on the money. “If it
100 goes into general government funds,
Hapag-Lloyd Germany then in the end those costs will be passed
Ocean Network Express 50 on,” said Rolf Habben Jansen, chief
Japan/Singapore
(ONE) executive of Hapag-Lloyd.
Evergreen Line Taiwan Ultimately, the industry increasingly
0
2019 20 30 40 50 60 70 fears that its influence over regulation
Sources: Alphaliner; Energy Technology Perspectives * Measure of volume, twenty-foot equivalent units could be slipping away and it risks sim-
ply being branded a laggard on climate
change.
Deep water: the said the carbon intensity requirement growth and higher costs of basic goods ous negotiations about putting a cost on ‘We have “The worst thing for the global ship-
shipping was a “paper tiger” with a lack of an caused by tighter environmental rules. shipping’s carbon emissions and ping industry is to have a patchwork of
industry fears enforcement mechanism. China and Russia remain major oppo- whether companies’ lobbying matches to start regional schemes,” said Anne Stef-
losing its The re-emergence of the US as a force nents of meaningful action, European their public messaging. turning fensen, chief executive of Danish Ship-
influence over in climate talks has bolstered the coali- delegates said. “Policymakers are sitting on the most ping, a trade body.
any future tion of EU states and some Pacific “It’s the developed world telling the significant historical mandate to decar- now from The EU is expected to propose next
regulation Islands pushing for a greater ambition, developing world to stay where they are. bonise shipping,” said Rasmus Bach the iceberg month the widening of its emissions
Qilai Shen/Bloomberg
but the approach also opens up the risk Growth of world trade is in developing Nielsen, global head of fuel decarboni- trading system to include maritime
of a “failure to decide anything”, in the countries,” said Edmund Hughes, who sation at commodity trader Trafigura, ahead’ transport.
words of one European delegate. was a senior IMO official for 10 years. who believes the IMO needs to agree on If Brussels targets extraterritorial
Developing countries, particularly in The question in the months and years a carbon levy by 2023 that begins two journeys, it will send shockwaves
Latin America, are deeply concerned ahead is whether the slow-moving, con- years later. through the slow-moving world ofship-
about a hit to their trade-dependent sensus-focused IMO can accelerate seri- There are signs of sea change from ping.
Legal Notices
Regent has yet to unveil a “wing-in-
ground effect vehicle” that has carried
commercial passengers, but promises to
by 2025 and says it has secured $465m
in provisional orders from airlines and
ferry companies. Backers include Peter
Thiel’s investment fund and Caffeinated
Capital, an early investor in Boom.
Brittany Ferries, which is in develop-
ment discussions with Regent, con-
ceded that there were “many technolog-
ical, practical and regulatory mile-
stones” to pass before ferries flit across
one of the world’s busiest waterways.
“We hope this may help bring com-
mercial success in the years that follow.
Who knows? This could be the birth of
ferries that fly across the Channel,”
said Frédéric Pouget, ports and opera-
tions director for Brittany Ferries.
Research suggests big opportunities
for the transport sector over the next
few decades. A study by Roland Berger,
the consultancy, projects that the pas-
senger urban air mobility market will
generate revenues of almost $90bn a
year by 2050, with 160,000 commercial
passenger drones flying in the skies.
Businesses For Sale
Investment in start-ups hit $907m in
the first half of 2020, almost 20 times
the level in all of 2016, the report said.
Regulation was “no longer viewed as a
major industry barrier”, it said, noting
that authorities such as the EU Aviation
Safety Agency and the US Federal Avia-
tion Administration, were working with
electric vertical take-off and landing
manufacturers and others to imple-
ment workable regulations.
But despite bullish projections, the Business for Sale, Business Opportunities, Business Services,
flying taxi market faces several chal- Business Wanted, Franchises
lenges, from gaining public acceptance Runs Daily
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to building the necessary infrastructure Classified Business Advertising
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Individual vehicles would also need to
secure the relevant certification from
air safety regulators, although the regu-
latory requirements for flying ferries Notice to Advertisers
could be different. Calls to the Financial Times Advertising Department may be monitored.
The UK’s Civil Aviation Authority is Acceptance of any advertisement for publication will be subject to the then current terms and conditions of insertion
working to keep pace with rapid devel- of advertisements in FT publications.
opments in drone technology, and has A copy of the terms and conditions of insertion of advertisements in FT publications can be obtained from
encouraged innovation in areas, includ- +44 (0)20 7873 3000, or viewed at www.FT.com/advertising
ing artificial intelligence and autono-
mous flying.
8 ★ FINANCIAL TIMES Wednesday 16 June 2021

COMPANIES & MARKETS

Cross asset. Volatility Commodities

Oil likely to
Fed assurances restore calm hit $100 a
but stir complacency fears barrel, say
top traders
DAVID SHEPPARD AND NEIL HUME
LONDON

The world’s top commodity traders

have forecast a return to $100-a-barrel
oil as investment in new supplies slows
before demand has peaked and before
green alternatives can take up the slack.
Executives from Vitol, Glencore and
Trafigura and Goldman Sachs said
yesterday that $100 crude was a real
possibility with prices reaching their
highest level in two years this week as
Brent crude moved above $73 a barrel.
The prediction comes at a time when
concern about inflation is rising and
many commodities, such as copper,
have already reached record highs,
boosted by supply shortfalls as the
economic recovery gathers pace.
Oil has lagged behind because of a
slowdown in demand during the
coronavirus pandemic and fears
demand could peak in the next decade.
But predictions that prices will move
much higher in the next few years have
gained momentum in recent weeks.
Jeremy Weir, executive chair of
Trafigura, one of the largest independ-
ent oil traders, told the FT Commodities
Global Summit yesterday that he was
“concerned” by the lack of spending on
new supply because the world was not
ready to make the leap to clean energy.
“I actually think that there is a chance

energy costs are also higher that really

Wait-and-see approach
points to trouble if inflation
rips ahead of expectations
NAOMI ROVNICK AND EVA SZALAY
LONDON
After inflation fears shocked investors
in the first few months of this year, mar-
kets have dropped into a deep slumber.
The Vix, a measure of expected vola-
tility in Wall Street’s S&P 500 equity
index, fizzled to a pandemic-era low of
15.7 points on Friday. During the early
shock of the pandemic, it spiked above
80. A measure of volatility on foreign
exchange markets produced by Deut-
sche Bank also dropped to its lowest
since February 2020 last week.
Analysts say the quiet spell reflects
the wait-and-see tactic deployed by the
Federal Reserve, which is prepared to sit
out a spell of unusually high inflation
before potentially unsettling markets
by withdrawing monetary support. But
some investors are growing nervous
that complacency is setting in.
“We feel increasingly alert” about the
calm conditions on stock markets, said
Gergely Majoros, a member of the
investment committee at European
fund manager Carmignac. “It means
you need to have your eyes wide open
about what is coming next.”
In a research note, the investment
committee of Credit Suisse also warned
of “an elevated level of investor compla-
cency” across asset markets, suggesting
there was “higher downside risk to the
news flow than usual”.
Global stocks have ticked up to record
highs as developed nations’ economies
recover from the pandemic, boosting
Wall St fear gauge falls to pandemic-era low
Cboe Volatility index*
Jan 2020
* Also known as the Vix, it is a measure of implied volatility in the S&P 500 index
Source: Refinitiv
companies’ earnings prospects. But the
gains have been muted in recent weeks,
with some investors saying that the
good news has long been baked in. The
FTSE All World gauge of developed and
emerging market stocks has gained just
over 1.4 per cent this so far month.
Headline consumer price inflation in
the US hit 5 per cent in the 12 months to
May, following a 4.2 per cent increase in
April as prices tied to the economy reo-
pening and supply chain bottlenecks —
such as commodities — soared.
Central banks have traditionally
tightened financial conditions to com-
bat spiralling prices. But the Fed, which
meets this week, has maintained the
burst of inflation is temporary. It has
succeeded in convincing investors of
that too. “Markets are agreeing, at least
for now, with [Fed chair Jay] Powell that
the inflation we are seeing is ephem-
eral,” said Margaret Vitrano, portfolio
manager at ClearBridge Investments.
A Bank of America survey of 207 glo-
bal fund managers responsible for
$645bn of client assets this week
showed more than seven in 10 believed
100
80
60
40
20
0 after strengthening in the first quarter
2021 Jun
post-pandemic inflation would be tran-
sitory. Many have also already trimmed
bond holdings in expectations of lighter
Fed support, taking the share of bonds
in portfolios to a three-year low. A nega-
tive stance towards bonds was another
factor that has convinced asset manag-
ers to hold on to equities, investors say.
“Equities should still rise this year but
not at the same rate as when activity was
accelerating more quickly earlier in the
year,” said Caroline Simmons, UK chief
investment officer at UBS’s wealth man-
agement arm.
Low volatility is not always a signal to
sell equities. Figures compiled by Schro-
ders analyst Duncan Lamont show that,
since 1991, buying the S&P 500 on a day
when the Vix was between 15 and 16
would have led to a total return of 14.6
per cent in the following 12 months.
But the sense of calm on markets
points to a complacency that could shat-
ter, analysts say, if inflation rips ahead of
the Fed’s expectations.
“If persistent inflation means higher
input costs that companies cannot pass
along . . . because households food and
The US central
bank has affects profitability,” said ClearBridge’s
persuaded Vitrano. Stock markets were “treading
water,” she said, “because it is too soon
investors that
this year’s burst to make a call on this”.
of inflation is Currency markets have also been par-
temporary alysed by prospects of the Fed keeping
Jim Lo Scalzo/epa-EFE
financial conditions loose for longer
than traders initially expected.
The dollar index, which measures the
greenback’s strength, has moved less
than 1 per cent higher so far this year,
and then giving up most of its gains.
“The main narrative for the inertia in
[currencies] is pretty straightforward,
and emphasises the stand-off between
the irresistible force of US reflation and
the immovable object of an ultra-pa-
tient Fed,” said Paul Meggyesi, head of
global FX strategy at JPMorgan.
The Conference Board forecasts that
US economic output will increase at an
annualised rate of 9 per cent in the sec-
ond quarter of this year, moderating
thereafter. Companies’ earnings are
expected to follow a similar trajectory.
Analysts predict that earnings of com-
panies listed on the S&P 500 will rise by
an aggregate 35 per cent this year, falling
to a 12 per cent gain in 2022, according
to FactSet. On the Stoxx Europe 600,
profits are expected to rise 51 per cent
Stock this year and 14 per cent in 2022.
“The only direction the Fed and other
markets are central banks could take now is to
‘treading reduce accommodation, and that could
cause correlation shocks,” driven by a
water rise in bond yields, said Olivier Marciot,
because it is cross-asset investment manager at Uni-
gestion. “Markets are in a wait-and-see
too soon to mode, it is not about what will happen
make a call next but about when. We do not know
then when, and if you move too early in
on this’ the game you will get beaten up.”
‘There is a concern on
the supply side . . . that
I think will probably
drive prices higher’
for oil to get up to those numbers,” he
told the summit. “The issue for oil is not
demand . . . the supply situation is quite
concerning. We’ve gone from 15 years of
reserves to 10 years. We’ve seen capital
expenditure go from five years ago at
$400bn a year to just $100bn a year. So
therefore, there is a concern on the
supply side . . . that I think will
probably drive prices higher.”
Alex Sanna, the top oil trader at
Glencore, also said $100 oil was looking
more likely. “If you’re cutting supply
without at the same time addressing
your demand, that is when you can get
price dislocations,” Sanna said. “You’re
really only one or two events away from
a material spike in oil prices.”
Oil has not traded above $100 a barrel
since 2014 when a surge in supplies
from the US shale sector brought the last
so-called supercycle to an end.
At the start of this century, oil prices
rallied from near $10 a barrel to reach
above $100 in 2008, boosted by growing
Chinese demand. Prices, while volatile,
averaged around $100 a barrel for the
next six years.
Russell Hardy, chief executive of
Vitol, the world’s largest independent
oil trader, said $100 oil was a “possibil-
Our global ity”, though he believes there should be
team gives you enough spare capacity with Opec and
market-moving allies such as Russia still restricting sup-
news and views, plies because of the pandemic.
24 hours a day “There’s 5m barrels of spare produc-
ft.com/markets tion being held back from the market
today,” Hardy said.

Crypto Currencies

Hedge funds poised to expand in digital
currencies despite risk of tighter rules
LAURENCE FLETCHER
Hedge funds plan to increase their
exposure to cryptocurrencies by 2026,
a survey shows, in a vote of confidence
for digital assets after large price falls
and plans for punitive capital rules.
A survey of 100 hedge fund chief
financial officers globally, conducted by
Intertrust, the fund administrator,
found that executives expect to hold an
average of 7.2 per cent of their assets in
cryptocurrencies in five years.
Replicated across the sector, that
could equate to about $312bn of assets
in crypto, based on data group Preqin’s
forecast for the size of the hedge fund
industry, Intertrust estimated.
Of the respondents, 17 per cent
expected to hold more than 10 per cent
in crypto.
This would represent a large increase
in appetite among hedge funds. Current
holdings are unclear but a number of
big-name managers have already com-
mitted small amounts to crypto assets,
attracted by soaring prices and market
inefficiencies that they can arbitrage.
The Basel Committee on Banking
Supervision said last week that crypto
should carry the toughest bank capital
rules of any asset.
Man Group trades bitcoin futures in
its AHL unit while Renaissance Tech-
nologies said last year that its Medallion
fund could invest in bitcoin futures.
Hedge fund manager Paul Tudor
Jones has bought in while Brevan
Howard has been shifting a small
portion of funds into crypto. Alan
Howard, its co-founder, is a big backer
of the industry.
Bitcoin is the largest contributor to
Bitcoin is the largest contributor to
gains this year at SkyBridge Capital
gains this year at SkyBridge Capital,
the US fund firm set up by Anthony
Scaramucci, former White House
communications director.
SkyBridge started buying it late last
year and then trimmed its holding going
into April, just before the price of the
token fell.
Hedge funds “are well aware not only
of the risks but also the long-term
potential” of crypto, said David Miller,
executive director at Quilter Cheviot
Investment Management.
Scepticism about crypto is wide-
spread among more traditional asset
managers, many of whom remain con-
cerned about volatility and the prospect
of tighter regulation.
“For the moment, crypto investments
remain limited to clients that have a
high risk tolerance and, even then,
investments are typically a low
proportion of investable assets,”
Morgan Stanley and Oliver Wyman, the
consultancy, said in a recent report.
Some hedge funds remain wary. Paul
Singer’s Elliott Management told
investors this year that crypto could
become the “greatest financial scam in
history”.
China approves record outflows from
local investors to cool renminbi rally
THOMAS HALE AND HUDSON LOCKETT
HONG KONG
China has approved record amounts of
investment to flow out of the country
through an official scheme as
authorities liberalise the local financial
system against a backdrop of a rallying
renminbi.
A cumulative $147bn of approvals have
been added to the nation’s qualified
domestic institutional investor scheme,
which allows investors to access assets
outside mainland China through banks
and other institutions.
In early June, Beijing approved $10bn
in new QDII allocation, the highest sin-
gle amount in the history of the scheme,
which was launched in 2006 and is used
mainly by China’s retail investors.
The move to allow more capital to
leave the country came as policymakers
have increasingly voiced concerns over
high asset prices, as well as a rally in the
currency.
Due to strict controls on its capital
account, China’s vast household savings
are primarily funnelled into domestic
markets.
The renminbi has strengthened
almost 10 per cent against the dollar in
the past year and hit a three-year high in
May.
To help cool it, China’s central bank
this month demanded lenders increase
holdings of foreign currencies for the
first time since the 2008 financial crisis.
Mitul Kotecha, chief emerging
markets Asia and Europe strategist at
TD Securities, said the renminbi’s
‘This is part of China’s
opening of the capital
account, in support of
renminbi liberalisation’
strength against the dollar and on a
trade-weighted basis had caused a “high
degree of consternation” among policy-
makers in Beijing and that QDII
outflows were one measure to counter
its rise.
A stronger renminbi can make
Chinese exports less attractive on the
international market.
The renminbi’s jump came in
response to China’s swift economic
recovery from Covid-19 and inflows last
year to its rapidly evolving bond and
equity markets, where foreign investors
still make up a small portion of
ownership.
Policymakers have grown concerned
over rising property prices as well as
recent volatility in international
commodities markets.
“If we look at it longer term, this is
part of China’s opening of the capital
account, in support of renminbi
liberalisation,” said Shuang Ding, chief
economist for greater China and north
Asia at Standard Chartered, of the
record QDII approval.
In the short term, he added, it was
related to “the strength of the currency”.
The expansion of the QDII quota will
complement other Hong Kong-linked
programmes that allow investment to
flow out of China. However, any
outflows via these schemes must even-
tually be converted back to renminbi.
The Stock Connect programme,
which was launched in 2014 and allows
investors in Hong Kong to buy mainland
Chinese shares and vice versa, has
drawn $60bn of flows into Hong Kong
this year and $32bn into mainland
China.
Wednesday 16 June 2021 ★ FINANCIAL TIMES 9

COMPANIES & MARKETS

The day in the markets Outlook is bright

What you need to know
for capital-heavy
3 European stocks outperform Wall
business models
Street ahead of Fed meeting conclusion
US stocks are trailing European peers
3 Sterling at weakest level against the Indices rebased (€)
US dollar in a month
3 Brent crude hits highest level since
April 2019 Stoxx Europe 600
106
Ian Harnett
European equities pulled ahead of Wall
Street indices as investors held back from
104 Markets Insight
adding to US positions before the

T
conclusion of the Federal Reserve’s latest
monthly meeting. he investment regime of the towards capital-heavy business models. ageing infrastructure. After decades of
The region-wide Stoxx Europe 600 102 past two decades was domi- The trend towards more capital- neglect, this will boost demand for com-
index edged 0.1 per cent higher, hitting a nated by capital-light busi- heavy companies is driven by four modities and capital-heavy companies.
new all-time record peak, while London’s ness models and a focus on structural themes: investment in At the same time, climate-transition
FTSE 100 rose 0.4 per cent. investing in faster-growing “reshoring”; a shift from investment in technologies will require investment in
The S&P 500 index, the broad US companies. information to infrastructure; the need a range of areas. The broader electrifica-
100
equity gauge, slid 0.2 per cent by We see this changing, with capital- to develop climate-transition technolo- tion of transportation needs rapid
lunchtime in New York after reaching its heavy models and investment in com- gies and, finally, investment in technol- advances in battery technology and
29th record closing high on Monday. The S&P 500 panies that are currently considered ogies needed to secure geopolitical lead- hydrogen fuel cells. However, transpor-
tech-focused Nasdaq Composite lost 0.5 undervalued coming to the fore as ership. These all require shifts from tation accounts for less than a fifth of
per cent. 98 short-run capacity pressures and longer investing in ideas and information to CO2 emissions, so innovations will be
Some analysts have predicted that the Apr 2021 Jun run structural themes combine. investing in stuff. needed across the economy, from steel
Fed, which finishes its two-day meeting Source: Refinitiv Capital-light businesses relied on glo- Reshoring is an investment in inde- production to agriculture.
today, will bring forward its projections balisation and IT not only to outsource pendence and resilience. The fragility of The race for geopolitical leadership is
for its first post-pandemic interest rate labour, but also capital investment in long, thin supply chains was exposed by also likely to shape investment patterns.
rise by a year to 2023. inflation would be temporary, “we don’t The S&P 500 had notched up 28 areas such as machinery and equip- both the financial crisis and Covid-19. The military industrial complex was
The central bank may also hold initial anticipate any change to the policy closing highs for 2021 by the end of last ment. Intellectual property and intangi- central to technological innovation and
talks about reducing its $120bn of guidance language on either rates or week, according to Credit Suisse ble assets became drivers of earnings US economic growth during the 1960s,
monthly bond purchases, although global asset purchases”, Kenny added. strategist Jonathan Golub. growth and market capitalisation. Investing in infrastructure, making it profitable to “piggyback” on
stock markets have edged up to new Standard Chartered strategist Steve “Importantly, economic activity has “Platform companies” that connect not information, is a government investments in computing
records in recent weeks as any tapering is Englander said: “We think it will be hard improved over this period, the true customers and suppliers have become and aerospace.
expected to be carefully communicated for the Fed to avoid discussion of catalyst of the S&P 500’s advance,” Golub the ultimate expression of this informa- theme for governments, Today, China’s “Military Civil Fusion”
and gradual. tapering but relatively easy to dismiss said. tion heavy/capital light business model. companies and investors programme seeks to deliver the techno-
“Economic data highlight that the US any expectation of imminent action as The US Dollar index, which measures Capital-heavy businesses, which have logical advances needed to secure geo-
economy is growing at a rapid clip,” said very premature.” the currency against peers, was flat. been favoured by “value” investors in political leadership. Beijing’s targets
ANZ economist Tom Kenny. But after The Fed’s asset purchases, which have Sterling dropped 0.2 per cent to $1.4079, the past, have floundered. National governments are increasingly range from reducing technology gaps in
repeated comments by Fed chair Jay been followed by central banks its weakest level in a month. We see the policy response to the Cov- focused on supply-chain security to aviation engines and high-end semicon-
Powell that the central bank wanted to worldwide, have lowered the yields on International benchmark Brent crude id-19 pandemic potentially changing the ensure cyber security, biosecurity, ductors, to building leadership in quan-
see substantial improvements in the US government bonds and boosted the added 1.3 per cent to $73.78 a barrel, its investment regime and with it the busi- financial security and national security. tum computing. If the US is to keep pace
labour market and that a surge in appeal of riskier assets such as equities. highest since April 2019. Naomi Rovnick ness models of the corporate sector. Some companies have recognised the with China, it will need to channel capi-
Monetary policy now places full potential gains. Tesla describes itself as tal into these areas.
employment and inclusion ahead of “absurdly vertically integrated” as a The shift to capex-heavy business
Markets update inflation, while fiscal policy is increas- way to secure rapid growth and to make models will initially be driven by those
ingly expansionary. US nominal gross copying its vehicles by buying from a sectors starved of capital in the past 20
domestic product could rise 10 per cent catalogue of its suppliers difficult. Ama- years as they benefit from reshoring and
this year, while delivering the kind of zon has also invested to control its end- higher infrastructure spending. But
US Eurozone Japan UK China Brazil mix of growth and inflation seen in the to-end business, with its own web serv- longer term it could be the nascent tech-
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa 1950s and 1960s. ice and air-cargo businesses. nologies needed for the climate transi-
Level 4241.77 1770.58 29441.30 7172.48 3556.56 129595.98 The under-investment in capital- Investing in infrastructure, not infor- tion and geopolitical “proxy wars” that
% change on day -0.31 0.21 0.96 0.36 -0.92 -0.47 light businesses will be exposed by mation, is a theme for governments, deliver better returns to investors from
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ such rapid demand growth, resulting companies and investors. The Global capital-heavy companies.
Level 90.607 1.213 110.085 1.409 6.403 5.078 in increased investment as companies Infrastructure Hub estimates global
% change on day 0.094 0.083 0.091 -0.212 0.190 0.313 seek to rebuild capacity. However, infrastructure needs $94tn of invest- Ian Harnett is co-founder and chief invest-
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond these short-term pressures will only ment over the next 20 years to keep ment strategist at Absolute Strategy
Yield 1.499 -0.234 0.044 0.758 3.197 8.952 accelerate the longer-run regime shift pace with demographics and replacing Research
Basis point change on day 0.340 1.800 0.820 2.000 7.100 1.300
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 475.14 73.72 71.81 1865.60 27.73 4290.60
% change on day -0.13 0.83 0.91 -0.82 -1.46 0.16
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.

Main equity markets

S&P 500 index Eurofirst 300 index FTSE 100 index
4320 1800 7200

4240 1760 7040

4160 1720
6880
4080 1680
| | | | | | | | |
4000 || | | | | | | | | | | | | | | | | | | 1640 || | | | | | | | | | | | | | | | | | | 6720 | | | | | | | | | | |

Apr 2021 Jun Apr 2021 Jun Apr 2021 Jun

Biggest movers
% US Eurozone UK
Exxon Mobil 2.41 Atlantia 3.56 Associated British Foods 3.27
Synchrony Fin 2.15 Air Liquide 2.61 Bt 2.87
Ups

Alliance Data Systems 2.00 Siemens 2.11 Royal Dutch Shell 2.34
Micron Technology 1.90 Schneider Electric 1.98 Spirax-sarco Eng 2.08
Diamondback Energy 1.87 Orange 1.63 Smiths 2.06
%
Freeport-mcmoran -7.38 Thyssenkrupp -7.44 Antofagasta -4.14
Alexandria Real Estate Equities -4.95 Arcelormittal -4.74 Intermediate Capital -3.72
Downs

Coty -4.60 Lufthansa -3.22 Anglo American -3.65

Nucor -3.47 Inditex -2.23 Fresnillo -2.76
Activision Blizzard -3.06 Tenaris -1.81 Flutter Entertainment -2.52
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Europe London

News of a fundraising sent Vroom Polish game developer CD Projekt Subprime lender Non-Standard Finance
skidding lower as the online used-car jumped on news that its blockbuster title fell after announcing that it was planning
group announced plans for an offering of Cyberpunk 2077 was now an option that to raise about £80m, although its
$500m of convertible senior notes due in could be added to a Sony PlayStation placement or offering remained
2026. “wish list”. dependent on concluding talks with the
Proceeds from the sale were earmarked Cyberpunk was abruptly removed from UK’s financial watchdog regarding
for general corporate purposes, including the Sony store last December because of redress for some customers.
advertising, marketing and technology its bug-plagued release, which led users In August 2020, NSF said the Financial
development. to request refunds. Conduct Authority had “raised a number
Pharmaceutical group Avenue The “wish list” addition, spotted by of concerns regarding certain aspects of
Therapeutics sank on news that the Food Reddit user AidThisFellowUser, the operating procedures and processes”
and Drug Administration had declined suggested that the game might soon at its guarantor loans division.
approval of IV tramadol, its treatment for return to the PlayStation store. Another doorstep lender, International
pain relief. Credit Suisse said the Warsaw group Personal Finance, rallied as it forecast “a
Avenue said it disagreed with the FDA’s had been in discussion with Sony about significantly stronger rebound in
interpretation of the data in its new drug restoring Cyberpunk. profitability in 2021 than was expected at
application and intended “to continue to “Back in 2019 around 25-30 per cent of the time of our Q1 trading update” in
pursue regulatory approval” for tramadol. overall sales used to come from April 29.
Fusion Pharmaceuticals jumped after PlayStation . . . so coming back to the “Collections performance has
the release of promising early results for store could add a few hundred thousand continued to be very strong” in the first
experimental cancer treatment FPI-1434. units per quarter,” said Credit Suisse half of 2021, said the Leeds group.
Fusion has a collaboration agreement analysts. James Hamilton at Numis, which gives
with AstraZeneca to jointly develop a Leonteq gained after the Swiss fintech IPF a “buy” rating, said as pandemic
number of targeted therapies. company said it expected to generate restrictions were lifted, there would “be a
Companies linked to wood production record profits for the first half of this year, strong demand for credit and fewer
tracked lumber prices lower with forest without revealing an approximate figure. competitors” for IPF.
group Weyerhaeuser, wood products Its previous highest half-year pre-tax Kin + Carta, which operates digital
company West Fraser Timber and profits were SFr52.9m ($58.8m) in 2018. products and services, leapt more than a
timberland real estate investment trust Swedish clothing retailer Hennes & fifth following a bullish update.
Rayonier all down. Mauritz slid after reporting second- For its financial year ending July 31, the
DraftKings fell after activist investor quarter net sales of SKr46.5bn ($5.6bn), company said trading was “comfortably
Hindenburg Research disclosed a short which was up 75 per cent year on year in ahead of market expectations” with net
position in the sports betting group. local currency terms but missed analysts’ revenue expected to grow 10 per cent to
Ray Douglas forecasts. Ray Douglas about £150m. Ray Douglas
10 ★ FINANCIAL TIMES Wednesday 16 June 2021

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 € $ pe r £ ¥ per $ £ pe r € Oil Brent $ Sep Gold $

-0.31% -0.66% -0.51% -0.71% -0.13% -0.212% -0.82%

0.36% 0.21% 0.96% 0.083% 0.091% 0.233% 0.98%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
May 16 - - Index All World May 16 - Jun 15 Index All World May 16 - Jun 15 Index All World May 16 - Jun 15 Index All World May 16 - Jun 15 Index All World May 16 - Jun 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
20,241.42 3,258.63
4,241.77 7,172.48 15,729.52 29,441.30
4,163.29 7,043.61 15,416.64 3,134.52
19,366.69 27,824.83
Day -0.31% Month 1.62% Year 38.32% Day 0.42% Month 4.52% Year 31.78% Day 0.36% Month 1.81% Year 18.24% Day 0.36% Month 0.57% Year NaN% Day 0.96% Month 4.87% Year 32.04% Day 0.20% Month 3.34% Year 52.82%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,770.58 3,174.87
14,080.15 50,883.65
9,230.70 28,638.53
13,429.98 49,371.98 1,704.70 9,155.60 28,194.09 3,055.02
Day -0.66% Month 4.83% Year 44.75% Day -0.29% Month 3.42% Year 36.05% Day 0.21% Month 3.91% Year 28.58% Day -0.54% Month 0.93% Year 27.16% Day -0.71% Month 2.24% Year 17.92% Day 0.69% Month 3.90% Year 18.24%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
6,639.52 25,736.75
129,595.98 52,773.05
3,556.56
34,382.13 34,218.80 6,367.35 24,862.68
121,880.82 3,490.38 49,580.73
Day -0.51% Month -0.50% Year 32.79% Day -0.47% Month 6.34% Year 40.31% Day 0.35% Month 3.98% Year 37.87% Day -0.08% Month 4.01% Year 35.80% Day -0.92% Month 1.90% Year 21.81% Day 0.42% Month 8.29% Year 56.22%

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 65552.80 66836.83 Cyprus
CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 28250.18 28259.68 Philippines Manila Comp 6976.73 6917.49 Taiwan Weighted Pr 17371.29 17213.52 Cross-Border DJ Global Titans ($) 489.93 490.89
Australia All Ordinaries 7633.00 7577.20 Czech Republic
PX 1175.34 1180.01 FTSE Italia Mid Cap 48443.44 48594.69 Poland Wig 66307.37 66924.39 Thailand Bangkok SET 1622.31 1633.06 Euro Stoxx 50 (Eur) 4145.47 4132.67
S&P/ASX 200 7379.50 7312.30 Denmark
OMXC Copenahgen 20 1633.64 1625.86 FTSE MIB 25736.75 25757.83 Portugal PSI 20 5201.36 5198.63 Turkey BIST 100 1442.56 1454.25 Euronext 100 ID 1284.71 1283.31
S&P/ASX 200 Res 5631.30 5625.00 Egypt
EGX 30 9933.35 9887.19 Japan 2nd Section 7622.65 7607.22 PSI General 3840.46 3842.00 UAE Abu Dhabi General Index 6736.11 6701.88 FTSE 4Good Global ($) 10473.19 10482.36
Austria ATX 3529.07 3552.78 Estonia
OMX Tallinn 1653.07 1656.38 Nikkei 225 29441.30 29161.80 Romania BET Index 11614.88 11568.09 UK FT 30 2853.80 2836.70 FTSE All World ($) 475.14 475.78
Belgium BEL 20 4221.19 4220.84 Finland
OMX Helsinki General 12485.56 12533.34 S&P Topix 150 1684.48 1668.85 Russia Micex Index 3831.90 3860.18 FTSE 100 7172.48 7146.68 FTSE E300 1770.58 1766.92
BEL Mid 9804.90 9851.44 France
CAC 40 6639.52 6616.35 Topix 1975.48 1959.75 RTX 1671.55 1687.37 FTSE 4Good UK 6726.99 6712.88 FTSE Eurotop 100 3337.67 3327.72
Brazil IBovespa 129595.98 130207.96 SBF 120 5198.43 5185.72 Jordan Amman SE 2098.27 2078.00 Saudi-Arabia TADAWUL All Share Index 10913.56 10897.47 FTSE All Share 4083.20 4074.57 FTSE Global 100 ($) 2762.59 2763.00
Canada S&P/TSX 60 1212.67 1205.45
Germany M-DAX 34134.02 34176.62 Kenya NSE 20 1911.92 1915.98 Singapore FTSE Straits Times 3174.87 3153.14 FTSE techMARK 100 6782.66 6781.73 FTSE Gold Min ($) 2424.83 2441.96
S&P/TSX Comp 20241.42 20157.65 TecDAX 3503.14 3508.40 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 370.76 370.33 USA DJ Composite 11475.33 11506.09 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 831.69 852.16 XETRA Dax 15729.52 15673.64 Latvia OMX Riga 1205.74 1207.79 Slovenia SBI TOP - - DJ Industrial 34218.80 34393.75 FTSE Multinationals ($) 3037.19 3024.94
Chile S&P/CLX IGPA Gen 21803.50 21829.16
Greece Athens Gen 920.03 927.29 Lithuania OMX Vilnius 927.04 932.73 South Africa FTSE/JSE All Share 67310.57 67941.48 DJ Transport 15190.33 15194.21 FTSE World ($) 848.36 849.19
China FTSE A200 14039.82 14186.63 FTSE/ASE 20 2234.00 2254.14 Luxembourg LuxX 1603.30 1621.81 FTSE/JSE Res 20 64119.36 65583.94 DJ Utilities 917.86 915.18 FTSEurofirst 100 (Eur) 4585.83 4575.14
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 28638.53 28842.13 Malaysia FTSE Bursa KLCI 1581.37 1582.46 FTSE/JSE Top 40 61061.79 61653.75 Nasdaq 100 14060.81 14128.20 FTSEurofirst 80 (Eur) 5706.09 5692.18
Shanghai A 3727.86 3762.65 HS China Enterprise 10668.93 10750.95 Mexico IPC 50883.65 51029.54 South Korea Kospi 3258.63 3252.13 Nasdaq Cmp 14080.15 14174.14 MSCI ACWI Fr ($) 721.10 719.52
Shanghai B 254.41 256.57 HSCC Red Chip 4107.83 4160.10 Morocco MASI 12462.80 12373.71 Kospi 200 434.13 433.22 NYSE Comp 16601.81 16620.00 MSCI All World ($) 3019.88 3012.67
Shanghai Comp 3556.56 3589.75
Hungary Bux 49299.48 49015.24 Netherlands AEX 730.98 730.10 Spain IBEX 35 9230.70 9281.10 S&P 500 4241.77 4255.15 MSCI Europe (Eur) 1838.58 1833.93
Shenzhen A 2498.63 2519.63
India BSE Sensex 52773.05 52551.53 AEX All Share 1044.61 1045.95 Sri Lanka CSE All Share 7605.53 7582.27 Wilshire 5000 44452.78 44675.17 MSCI Pacific ($) 3244.50 3238.86
Shenzhen B 1173.24 1168.94 Nifty 500 13607.80 13554.15 New Zealand NZX 50 12696.39 12562.17 Sweden OMX Stockholm 30 2280.07 2284.64 Venezuela IBC 4946.24 4933.11 S&P Euro (Eur) 1914.81 1912.55
Colombia COLCAP 1261.61 1260.21
Indonesia Jakarta Comp 6089.04 6080.38 Nigeria SE All Share 39156.28 39210.10 OMX Stockholm AS 926.45 929.00 Vietnam VNI 1367.36 1361.72 S&P Europe 350 (Eur) 1827.96 1824.50
Croatia CROBEX 2013.05 2011.29
Ireland ISEQ Overall 8176.73 8257.86 Norway Oslo All Share 1017.37 1006.88 Switzerland SMI Index 11921.97 11866.41 S&P Global 1200 ($) 3334.93 3338.26
Israel Tel Aviv 125 1779.04 1760.24 Pakistan KSE 100 48632.56 48726.08 Stoxx 50 (Eur) 3566.79 3548.70
(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 Jun 15 %Chg %Chg Jun 15 %Chg %Chg Jun 15 %Chg %Chg Jun 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
Amazon.com 44.0 3371.86 -12.01 Vodafone 228.8 132.00 2.00 Asml Holding 295.1 578.50 0.80 Eisai Co., 876.1 11405.00 705.00 Auto Trader 628.00 9.1 - Oxford Biomedica 1310.00 14.1 - Kin And Carta 245.00 27.6 70.7 Oil & Gas Producers 5382.28 5.7 18.9
Apple 39.2 129.93 -0.55 Anglo American 145.1 2999.00 -113.50 Royal Dutch Shella 282.1 17.38 0.25 Toyota Motor 744.2 10075.00 175.00 Royal Dutch Shell 1426.20 8.3 - Sanne 842.00 10.5 - Int Personal Finance 143.00 10.0 - Pharmaceuticals & Biotech. 17502.21 4.7 10.9
Facebook 25.0 336.14 -0.63 Bp 131.4 332.70 2.30 Sap Se O.n. 220.6 120.26 0.34 Softbank . 589.7 8042.00 -14.00 Royal Dutch Shell 1484.60 7.3 - Tullow Oil 64.36 10.4 - Norcros 336.00 9.8 66.7 Mobile Telecommunications 3301.19 3.7 19.4
Nvidia 19.0 714.84 -5.91 Glencore 127.9 321.00 -6.65 Acs Const. 195.8 25.54 -0.03 Tokyo Electron 452.7 49500.00 820.00 Bt 197.35 6.2 - Oxford Instruments 2245.00 7.2 - Enquest 20.75 9.2 - General Financial 12744.87 2.9 5.0
Jpmorgan Chase & Co 17.1 154.39 -3.18 Diageo 127.5 3478.50 44.00 Volkswagen Ag Vzo O.n. 194.5 225.15 -4.95 Fast Retailing Co., 421.1 84060.00 -270.00 Halma 2834.00 5.9 - Ssp 325.50 5.6 - Riverstone Energy 339.00 8.3 12.9 Gas Water & Multiutilities 4805.15 2.4 0.7
Microsoft 17.0 259.44 -0.45 Royal Dutch Shell 122.2 1426.20 32.60 Arcelormittal Sa 190.8 25.65 -1.28 Sony 325.2 11015.00 195.00 Smith & Nephew 1551.00 5.3 - Chrysalis Investments 217.00 4.8 - Schroder Eur Real Estate Investment Trust 104.00 7.1 - Electronic & Electrical Equip. 11227.52 2.1 12.6
Boeing 14.8 245.64 0.50 Rio Tinto 111.2 6014.00 -78.00 Lvmh 189.3 677.80 5.20 M3,. 242.2 7821.00 -42.00 Astrazeneca 8343.00 5.1 - Ashmore 409.60 4.4 - River And Mercantile 221.00 6.5 25.6 Tobacco 30248.51 1.9 5.3
Advanced Micro Devices 10.4 80.68 -0.88 Unilever 109.9 4337.50 42.50 Siemens Ag Na O.n. 180.2 138.60 2.86 Fanuc 232.2 27165.00 120.00 Glaxosmithkline 1417.00 4.8 - Sirius Real Estate Ld 104.60 4.4 - Dfs Furniture 293.00 6.2 27.7 Real Estate & Investment Servic 2755.46 1.7 6.6
Alphabet 9.8 2515.26 -11.79 Astrazeneca 106.1 8343.00 -5.00 Intesa Sanpaolo 173.4 2.45 0.00 Takeda Pharmaceutical 222.6 3800.00 63.00 Rightmove 645.40 4.0 - Man 188.75 4.2 - Reach 273.50 5.4 - General Industrials 7002.17 1.6 5.6
Freeport-mcmoran 9.8 36.57 -2.92 Hsbc Holdings 94.8 436.15 -3.30 Basf Se Na O.n. 160.5 67.05 -0.19 Mitsubishi Ufj Fin,. 221.6 608.80 4.10 London Stock Exchange 7840.00 3.9 - Pennon 1137.00 3.4 - Robert Walters 718.00 5.3 52.1 Software & Computer Services 2124.71 1.5 11.0
Relx 1928.50 3.4 - Essentra 323.00 3.2 - Medica 170.00 5.3 43.2 Beverages 27236.74 1.4 19.7
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
Spirax-sarco Eng 13470.00 3.4 - Bb Healthcare Trust 189.20 3.2 - Residential Secure ome 103.50 5.2 15.5 Food & Drug Retailers 4485.77 1.4 4.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Exxon Mobil 63.57 1.50 2.41 Oxford Instruments 2245.00 75.00 3.46 Atlantia 16.29 0.56 3.56 Eisai Co., 11405.00 705.00 6.59 Anglo American 2999.00 -5.8 - Aston Martin Lagonda Global Holdings 1958.50 -9.4 - Esken 25.80 -19.4 - Automobiles & Parts 4949.31 -6.4 7.9
Synchrony Fin 49.69 1.05 2.15 Associated British Foods 2367.00 75.00 3.27 Air Liquide 144.54 3.68 2.61 Nec 5550.00 270.00 5.11 Antofagasta 1468.50 -5.6 - Cmc Markets 449.00 -7.9 - Ted Baker 148.20 -12.6 - Household Goods 18085.67 -3.3 2.8
Alliance Data Systems 112.09 2.20 2.00 Ssp 325.50 9.40 2.97 Assa Abloy Ab Ser. B 26.54 0.66 2.56 Taiyo Yuden Co., 5540.00 200.00 3.75 Land Securities 703.20 -4.3 - Rank 175.00 -7.4 - Augmentum Fintech 137.00 -12.0 1.3 Industrial Metals 6432.32 -3.0 29.8
Micron Technology 82.02 1.53 1.90 Bt 197.35 5.50 2.87 Lindt Ps 8210.15 178.98 2.23 Unitika 385.00 13.00 3.49 Persimmon 3091.00 -4.1 - Puretech Health 363.50 -7.3 - Electra Private Equity 590.00 -11.9 - Construction & Materials 8062.07 -2.3 17.2
Diamondback Energy 88.06 1.62 1.87 Royal Dutch Shell 1426.20 32.60 2.34 Siemens Ag Na O.n. 138.60 2.86 2.11 Toyo Seikan Kaisha, 1655.00 54.00 3.37 British Land 505.40 -3.9 - Crest Nicholson Holdings 424.20 -7.1 - Newriver Reit 88.70 -10.4 8.2 Banks 2984.65 -2.1 19.4
Sainsbury (j) 253.80 -3.7 - Greencore 129.00 -6.7 - Sig 55.05 -9.8 70.8 Travel & Leisure 8666.03 -2.0 6.9
Downs Downs Downs Downs
Barratt Developments 730.80 -3.6 - Workspace 854.50 -6.7 - On The Beach 348.50 -9.2 - Mining 23756.98 -1.9 9.5
Freeport-mcmoran 36.57 -2.92 -7.38 Hammerson 41.37 -2.88 -6.51 Thyssenkrupp Ag O.n. 9.39 -0.75 -7.44 Kajima 1427.00 -48.00 -3.25
Next 8036.00 -3.4 - 888 Holdings 370.40 -6.3 - Superdry 404.50 -8.9 - Health Care Equip.& Services 7592.49 -1.8 16.0
Alexandria Real Estate Equities 183.95 -9.58 -4.95 Cmc Markets 449.00 -19.50 -4.16 Arcelormittal Sa 25.65 -1.28 -4.74 J.front Retailing Co., 1116.00 -31.00 -2.70
Jd Sports Fashion 909.00 -3.3 - Hochschild Mining 170.00 -6.2 - Allied Minds 21.50 -6.5 - Industrial Transportation 4158.09 -1.6 45.3
Coty 8.79 -0.42 -4.60 Antofagasta 1468.50 -63.50 -4.14 Lufthansa Ag Vna O.n. 10.34 -0.34 -3.22 Ihi 2751.00 -69.00 -2.45
Fresnillo 838.00 -3.2 - Hilton Food 1088.00 -6.2 -2.3 Hollywood Bowl 237.50 -6.5 - Real Estate Investment Trusts 3074.92 -1.4 12.2
Nucor 99.15 -3.56 -3.47 Ibstock 225.00 -9.00 -3.85 Hennes & Mauritz Ab, H & M Ser. B 20.17 -0.59 -2.86 Shimizu 864.00 -19.00 -2.15
Barclays 179.22 -3.2 20.2 Iwg 298.80 -6.1 - Ten Entertainment 235.50 -5.8 15.7 Aerospace & Defense 3782.43 -1.3 4.7
Activision Blizzard 96.15 -3.03 -3.06 Intermediate Capital 2253.00 -87.00 -3.72 Inditex 31.08 -0.71 -2.23 Ana Holdings 2814.00 -61.50 -2.14
Informa 536.00 -3.1 - Wetherspoon ( J.d.) 1248.00 -6.1 - Majedie Investments 229.50 -5.7 2.9 Food Producers 7588.47 -0.6 7.9
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jun 15 Currency Mid Change Mid Change Mid Change Jun 15 Currency Mid Change Mid Change Mid Change Jun 15 Currency Mid Change Mid Change Mid Change Jun 15 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 95.2849 0.0293 115.5472 0.0551 134.2324 -0.2638 Indonesia Indonesian Rupiah 14225.0000 22.5000 17249.9746 30.2090 20039.4778 -13.7837 Poland Polish Zloty 3.7376 0.0132 4.5324 0.0168 5.2653 0.0067 ..Three Month 0.7099 0.0016 0.8607 0.0021 - -
Australia Australian Dollar 1.3019 0.0067 1.5788 0.0083 1.8341 0.0052 Israel Israeli Shekel 3.2415 -0.0049 3.9308 -0.0052 4.5665 -0.0172 Romania Romanian Leu 4.0605 0.0011 4.9240 0.0022 5.7202 -0.0114 ..One Year 0.7099 0.0016 0.8602 0.0021 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4572 0.0001 0.5311 -0.0012 Japan Japanese Yen 110.0850 0.1000 133.4946 0.1439 155.0821 -0.2113 Russia Russian Ruble 72.2519 0.1856 87.6163 0.2400 101.7847 0.0307 United States United States Dollar - - 1.2127 0.0002 1.4087 -0.0032
Bolivia Bolivian Boliviano 6.9100 - 8.3794 0.0014 9.7345 -0.0221 ..One Month 110.0850 0.0999 133.4947 0.1440 155.0820 -0.2114 Saudi Arabia Saudi Riyal 3.7503 0.0001 4.5478 0.0009 5.2832 -0.0119 ..One Month - - 1.2126 -0.1993 1.4088 -0.0032
Brazil Brazilian Real 5.0782 0.0159 6.1581 0.0203 7.1539 0.0061 ..Three Month 110.0849 0.0998 133.4948 0.1442 155.0820 -0.2115 Singapore Singapore Dollar 1.3277 0.0014 1.6100 0.0020 1.8704 -0.0023 ..Three Month - - 1.2124 -0.1993 1.4088 -0.0032
Canada Canadian Dollar 1.2181 0.0046 1.4771 0.0058 1.7159 0.0026 ..One Year 110.0846 0.0992 133.4951 0.1449 155.0820 -0.2119 South Africa South African Rand 13.8063 0.0938 16.7422 0.1165 19.4495 0.0882 ..One Year - - 1.2117 -0.1993 1.4088 -0.0032
Chile Chilean Peso 724.2850 4.8500 878.3045 6.0295 1020.3353 4.5284 Kenya Kenyan Shilling 107.7500 -0.0500 130.6631 -0.0384 151.7926 -0.4157 South Korea South Korean Won 1117.0000 0.2000 1354.5305 0.4723 1573.5720 -3.2947 Vietnam Vietnamese Dong 22948.5000 3.0000 27828.5649 8.3613 32328.6662 -69.3368
China Chinese Yuan 6.4025 0.0121 7.7641 0.0160 9.0196 -0.0033 Kuwait Kuwaiti Dinar 0.3009 - 0.3649 0.0001 0.4239 -0.0010 Sweden Swedish Krona 8.3328 0.0077 10.1047 0.0110 11.7387 -0.0159 European Union Euro 0.8246 -0.0001 - - 1.1617 -0.0028
Colombia Colombian Peso 3697.0000 42.5000 4483.1691 52.2890 5208.1435 48.1688 Malaysia Malaysian Ringgit 4.1170 0.0020 4.9925 0.0033 5.7998 -0.0104 Switzerland Swiss Franc 0.8984 -0.0007 1.0895 -0.0006 1.2657 -0.0038 ..One Month 0.8246 -0.0001 - - 1.1617 -0.0028
Costa Rica Costa Rican Colon 617.1450 -0.0100 748.3812 0.1149 869.4020 -1.9905 Mexico Mexican Peso 20.1060 0.1930 24.3815 0.2381 28.3243 0.2081 Taiwan New Taiwan Dollar 27.6285 0.0230 33.5037 0.0336 38.9216 -0.0560 ..Three Month 0.8244 -0.0001 - - 1.1616 -0.0028
Czech Republic Czech Koruna 21.0168 0.0439 25.4860 0.0576 29.6073 -0.0053 New Zealand New Zealand Dollar 1.4054 0.0061 1.7042 0.0077 1.9798 0.0041 Thailand Thai Baht 31.1575 0.0325 37.7832 0.0458 43.8931 -0.0539 ..One Year 0.8237 -0.0001 - - 1.1611 -0.0028
Denmark Danish Krone 6.1325 -0.0005 7.4366 0.0006 8.6391 -0.0204 Nigeria Nigerian Naira 411.0000 -0.2900 498.3993 -0.2670 578.9956 -1.7257 Tunisia Tunisian Dinar 2.7456 -0.0001 3.3294 0.0004 3.8678 -0.0089
Egypt Egyptian Pound 15.6691 0.0394 19.0011 0.0510 22.0738 0.0055 Norway Norwegian Krone 8.3353 0.0283 10.1077 0.0360 11.7423 0.0133 Turkey Turkish Lira 8.5390 0.1373 10.3548 0.1682 12.0293 0.1664
Hong Kong Hong Kong Dollar 7.7621 -0.0002 9.4127 0.0014 10.9348 -0.0251 Pakistan Pakistani Rupee 156.7500 0.7500 190.0829 0.9416 220.8213 0.5570 United Arab Emirates UAE Dirham 3.6732 - 4.4542 0.0008 5.1745 -0.0118
Hungary Hungarian Forint 290.2280 0.9583 351.9451 1.2216 408.8582 0.4236 Peru Peruvian Nuevo Sol 3.9290 0.0412 4.7645 0.0508 5.5350 0.0456 United Kingdom Pound Sterling 0.7099 0.0016 0.8608 0.0021 - -
India Indian Rupee 73.3138 0.0400 88.9039 0.0636 103.2806 -0.1783 Philippines Philippine Peso 48.0350 0.1350 58.2497 0.1736 67.6692 0.0368 ..One Month 0.7099 0.0016 0.8608 0.0021 - -
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 Jun 15 Jun 14 Jun 11 Jun 10 Jun 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 2853.80 2836.70 2842.70 2819.90 2827.20 0.00 3314.70 1337.80 Fixed Line Telecomms 44.42 Media 13.05 Utilities 8.73 FTSE 100 Price Change FTSE 100 Price Change
Jun 15 chge% Index Jun 14 Jun 11 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Industrial Metals & 35.94 Software & Comp Serv 12.45 Food Producers 8.58 3I Group PLC 1251 9.50 Land Securities Group PLC 703.20 -15.40
FTSE 100 (101) 7172.48 0.36 6495.70 7146.68 7134.06 6064.70 2.96 1.69 19.99 115.55 6972.63 P/E Ratio net - - - - - 0.00 19.44 14.26 Industrial Transport 34.00 Industrials 12.41 General Retailers 7.67 Admiral Group PLC 3155 45.00 Legal & General Group PLC 280.40 3.50
FTSE 250 (250) 22631.72 -0.50 20496.23 22744.51 22734.13 17089.17 1.89 1.77 29.92 200.88 18130.09 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Beverages 19.78 Real Est Invest & Tr 12.18 Automobiles & Parts 7.35 Anglo American PLC 2999 -113.50 Lloyds Banking Group PLC 47.92 0.08
FTSE 250 ex Inv Co (183) 23612.55 -0.57 21384.52 23746.74 23738.93 81.05 1.80 0.59 93.86 158.92 19290.26 FT 30 hourly changes Oil & Gas Producers 19.36 Travel & Leisure 11.82 Consumer Goods 6.75 Antofagasta PLC 1468.5 -63.50 London Stock Exchange Group PLC 7840 70.00
FTSE 350 (351) 4101.74 0.21 3714.71 4093.25 4086.98 3400.00 2.77 1.70 21.25 60.71 7935.23 8 9 10 11 12 13 14 15 16 High Low Banks 19.30 NON FINANCIALS Index 11.64 Electricity 5.64 Ashtead Group PLC 5116 30.00 M&G PLC 244.50 0.30
FTSE 350 ex Investment Trusts (282) 4005.88 0.24 3627.89 3996.36 3990.03 82.57 2.82 1.41 25.15 31.19 4000.91 2836.7 2855 2856.1 2834.5 2760.2 2399.1 2395.8 2414 2426.7 2439.2 2366.1 Construct & Material 18.83 Health Care Eq & Srv 11.24 Aerospace & Defense 5.44 Associated British Foods PLC 2367 75.00 Melrose Industries PLC 166.70 0.15
FTSE 350 Higher Yield (140) 3297.52 0.12 2986.37 3293.57 3284.98 2710.93 3.89 1.43 17.97 66.14 7053.80 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Oil & Gas 18.77 Technology 11.22 Tobacco 5.10 Astrazeneca PLC 8343 -5.00 Mondi PLC 1938.5 -16.50
FTSE 350 Lower Yield (211) 4635.36 0.29 4197.98 4621.86 4619.62 3873.85 1.69 2.29 25.79 44.47 5540.87 Telecommunications 18.46 FTSE All{HY-}Share Index 11.15 Financial Services 4.97 Auto Trader Group PLC 628.00 -2.00 National Grid PLC 927.00 7.00
FTSE SmallCap (250) 7313.58 0.34 6623.48 7288.87 7277.48 4967.66 2.11 1.36 34.91 71.38 11752.10
FTSE SmallCap ex Inv Co (132) 6211.59 0.32 5625.47 6191.60 6178.97 87.31 1.48 -2.37 -28.58 33.59 10413.13 FX: EFFECTIVE INDICES FTSE SmallCap Index
Chemicals
17.67
17.10
FTSE 100 Index
Health Care
11.02
10.98
Household Goods & Ho
Equity Invest Instr
4.90
4.46
Avast PLC 484.80 -2.50 Natwest Group PLC 206.00 0.90
Aveva Group PLC 3533 -3.00 Next PLC 8036 -32.00
FTSE All-Share (601) 4083.20 0.21 3697.92 4074.57 4068.33 3362.12 2.75 1.69 21.52 59.73 7978.44 Basic Materials 16.41 Pharmace & Biotech 10.95 Leisure Goods 2.55
Jun 14 Jun 11 Mnth Ago Jun 15 Jun 14 Mnth Ago Aviva PLC 423.30 6.40 Ocado Group PLC 1889.5 -4.00
FTSE All-Share ex Inv Co (414) 3948.16 0.24 3575.62 3938.72 3932.44 82.65 2.80 1.37 26.04 30.58 4004.37 Mining 15.62 FTSE 250 Index 10.46 Personal Goods 0.87 B&M European Value Retail S.A. 550.00 - Pearson PLC 861.80 10.80
FTSE All-Share ex Multinationals (533) 1321.66 -0.04 992.85 1322.17 1321.52 1007.80 2.26 2.10 21.11 14.25 2678.54 UK 82.16 82.23 82.07 Industrial Eng 13.93 Financials 10.13 Tech Hardware & Eq 0.60 Bae Systems PLC 537.40 3.60 Pershing Square Holdings LTD 2500 -20.00
FTSE Fledgling (85) 13118.71 0.00 11880.85 13118.88 13103.85 8034.62 1.85 3.96 13.64 106.44 27252.88 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Electronic & Elec Eq 13.40 Gas Water & Multi 9.84 Food & Drug Retailer -2.18 Barclays PLC 179.22 -0.18 Persimmon PLC 3091 -14.00
FTSE Fledgling ex Inv Co (39) 17926.62 -0.32 16235.10 17984.26 17886.06 85.01 1.40 1.47 48.78 99.70 36339.51 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Support Services 13.26 Consumer Services 9.25 Nonlife Insurance -2.54 Barratt Developments PLC 730.80 -0.40 Phoenix Group Holdings PLC 723.40 1.80
FTSE All-Small (335) 5089.88 0.32 4609.60 5073.67 5065.86 3437.81 2.09 1.49 32.04 49.19 10492.20 Life Insurance 13.22 Real Est Invest & Se 9.22 Oil Equipment & Serv -13.94 Berkeley Group Holdings (The) PLC 4576 5.00 Polymetal International PLC 1645.5 -8.50
FTSE All-Small ex Inv Co (171) 4665.57 0.30 4225.34 4651.83 4641.66 87.26 1.47 -2.21 -30.66 25.35 9907.30 Mobile Telecomms 9.12 Oil & Gas Producers -40.36 Bhp Group PLC 2131 -21.00 Prudential PLC 1501.5 16.50
FTSE AIM All-Share (723) 1244.14 -0.54 1126.75 1250.92 1249.61 862.86 0.76 0.34 390.83 4.63 1434.24
BP PLC 332.70 2.30 Reckitt Benckiser Group PLC 6604 38.00
FTSE All-Share Technology (20) 2287.57 0.55 2220.61 2275.15 2273.35 90.60 1.01 0.94 104.94 11.09 3233.82
FTSE All-Share Telecommunications (7) 2117.88 1.76 2055.89 2081.34 2079.30 61.20 3.97 0.73 34.55 0.02 2929.42 FTSE GLOBAL EQUITY INDEX SERIES British American Tobacco PLC
British Land Company PLC
2845.5
505.40
50.00
-9.40
Relx PLC
Renishaw PLC
1928.5
5380
19.00
5.00
FTSE All-Share Health Care (15) 12526.56 0.20 12159.90 12501.89 12478.32 132.76 3.33 0.79 37.81 73.43 11145.54 Jun 15 No of US $ Day Mth YTD Total
YTD Gr Div Jun 15 No of US $ Day Mth YTD Total YTD Gr Div Bt Group PLC 197.35 5.50 Rentokil Initial PLC 492.90 2.80
FTSE All-Share Financials (250) 4868.12 0.02 4725.62 4867.32 4866.88 69.51 2.35 3.88 10.99 39.03 5159.42 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Bunzl PLC 2304 19.00 Rightmove PLC 645.40 -7.60
FTSE All-Share Real Estate (56) 1105.76 -0.92 1122.89 1116.00 1104.94 929.93 2.22 -1.48 -30.53 6.60 1111.97
FTSE Global All Cap 9111 815.12 0.2 3.2 12.0
13.0 1267.85
1.7 Oil Equipment & Services 26 248.59 -0.2 -0.2 31.3 431.01 34.2 4.6 Burberry Group PLC 2248 29.00 Rio Tinto PLC 6014 -78.00
FTSE All-Share Consumer Discretionary (89) 5531.24 -0.04 5369.33 5533.40 5554.55 73.83 1.09 0.13 697.51 29.16 5689.40
FTSE Global All Cap 9200 813.84 0.2 3.1 11.8
12.8 1265.67
1.7 Basic Materials 363 706.45 -0.4 -0.4 15.8 1220.60 17.8 2.7 Coca-Cola Hbc AG 2650 14.00 Rolls-Royce Holdings PLC 108.00 0.64
FTSE All-Share Consumer Staples (27)19550.29 0.98 18978.04 19359.61 19338.26 84.08 3.80 1.37 19.20 196.68 16906.88
FTSE Global Large Cap 1729 723.18 0.3 3.2 11.0
12.1 1158.97
1.7 Chemicals 170 962.82 -0.3 -0.3 10.6 1640.28 12.0 2.1 Compass Group PLC 1624 14.00 Royal Dutch Shell PLC 1426.2 32.60
FTSE All-Share Industrials (89) 6726.01 0.41 6529.13 6698.68 6703.85 91.65 1.78 0.98 57.50 45.75 7555.51
FTSE Global Mid Cap 2288 1051.88 -0.1 2.8 14.7
15.7 1538.99
1.7 Forestry & Paper 21 335.19 0.0 0.0 6.0 649.25 7.9 2.4 Crh PLC 3663 2.00 Royal Dutch Shell PLC 1484.6 26.20
FTSE All-Share Basic Materials (24) 8346.82 -1.57 8102.50 8479.87 8524.82 103.45 3.85 2.33 11.18 48.28 10293.86
FTSE Global Small Cap 5094 1149.40 -0.3 3.4 14.2
15.0 1613.29
1.4 Industrial Metals & Mining 94 615.75 -0.7 -0.7 31.4 1078.50 34.0 3.0 Croda International PLC 7170 54.00 Royal Mail PLC 591.00 3.00
FTSE All-Share Energy (14) 5585.03 1.48 5421.55 5503.55 5378.18 52.51 3.61 0.73 38.09 50.22 6402.96
FTSE All-World 4017 475.78 0.2 3.1 11.7
12.8 783.42
1.7 Mining 78 1032.57 -0.4 -0.4 17.3 1831.67 19.9 3.4 Dcc PLC 6128 48.00 Sage Group PLC 672.00 3.60
FTSE All-Share Utilities (10) 7743.64 0.17 7516.98 7730.48 7687.95 95.32 4.59 1.84 11.86 141.92 11069.13
FTSE World 2616 849.19 0.2 3.0 12.3
13.3 1877.10
1.7 Industrials 755 589.83 -0.1 -0.1 12.6 916.54 13.5 1.4 Diageo PLC 3478.5 44.00 Sainsbury (J) PLC 253.80 -
FTSE All-Share Software and Computer Services (18) 2459.28 0.54 2387.30 2446.00 2443.61 89.67 1.00 0.95 105.03 11.40 3678.07
FTSE Global All Cap ex UNITED KINGDOM In 8824 861.18 0.2 3.2 11.9
12.9 1314.99
1.6 Construction & Materials 147 704.15 -0.2 -0.2 14.3 1152.47 15.6 1.8 Entain PLC 1801.5 -10.00 Schroders PLC 3604 33.00
FTSE All-Share Technology Hardware and Equipment (2) 6214.45 0.66 6032.55 6173.72 6209.38 108.90 1.40 0.70 101.87 72.63 7865.72
FTSE Global All Cap ex USA 7350 624.01 0.2 4.3 10.7
12.1 1063.17
2.1 Aerospace & Defense 38 852.31 -0.3 -0.3 16.2 1302.71 17.1 1.3 Evraz PLC 628.60 -5.00 Scottish Mortgage Investment Trust PLC 1234.5 -8.50
FTSE All-Share Telecommunications Equipment (2) 565.26 -1.51 548.71 573.91 572.93 240.10 1.58 2.75 23.11 2.36 787.15
FTSE Global All Cap ex JAPAN 7721 847.05 0.2 3.1 12.7
13.8 1329.73
1.6 General Industrials 71 285.34 -0.8 -0.8 12.7 488.29 14.2 2.0 Experian PLC 2745 40.00 Segro PLC 1098.5 2.50
FTSE All-Share Telecommunications Service Providers (5) 3296.19 1.86 3199.71 3236.00 3232.90 59.61 4.05 0.70 35.09 0.00 4143.62
FTSE Global All Cap ex Eurozone 8457 856.11 0.1 3.2 11.7
12.7 1303.37
1.6 Electronic & Electrical Equipment 143 730.43 0.4 0.4 9.2 1026.70 9.8 1.2 Ferguson PLC 9818 196.00 Severn Trent PLC 2526 7.00
FTSE All-Share Health Care Providers (4) 7941.36 -0.66 7708.91 7994.14 8012.13 36.06 0.70 6.31 22.64 0.27 7325.53
FTSE Developed 2174 776.39 0.2 2.8 12.2
13.2 1218.12
1.7 Industrial Engineering 147 1153.80 -0.2 -0.2 12.6 1786.25 13.6 1.5 Flutter Entertainment PLC 13335 -345.00 Smith & Nephew PLC 1551 1.50
FTSE All-Share Medical Equipment and Services (2) 7271.20 -0.02 7058.37 7272.40 7268.32 117.59 1.77 1.42 39.81 79.79 6793.19
FTSE Developed All Cap 5693 816.14 0.2 2.8 12.4
13.4 1262.03
1.6 Industrial Transportation 122 1071.54 -0.2 -0.2 16.9 1676.59 17.9 1.5 Fresnillo PLC 838.00 -23.80 Smith (Ds) PLC 438.80 -6.80
FTSE All-Share Pharmaceuticals and Biotechnology (9)17440.27 0.24 16929.78 17398.91 17362.27 139.25 3.54 0.74 38.26 95.98 13960.75
FTSE Developed Large Cap 861 723.33 0.3 2.8 11.6
12.7 1155.20
1.7 Support Services 87 705.37 0.5 0.5 9.7 1030.77 10.3 1.0 Glaxosmithkline PLC 1417 9.60 Smiths Group PLC 1635 33.00
FTSE All-Share Banks (11) 2944.55 -0.39 2858.36 2956.16 2955.85 49.18 1.70 3.76 15.61 9.94 2469.87
FTSE Developed Europe Large Cap 232 447.16 0.3 3.5 13.8
16.0 2.3 Consumer Goods
851.82 530 655.66 -0.1 -0.1 7.3 1069.95 8.4 1.9 Glencore PLC 321.00 -6.65 Smurfit Kappa Group PLC 3897 -62.00
FTSE All-Share Finance and Credit Services (9)10859.42 0.82 10541.55 10770.77 10721.15 48.36 1.14 1.20 73.49 81.09 14257.92
FTSE Developed Europe Mid Cap 343 798.17 0.3 3.9 14.3
15.8 1323.24
2.0 Automobiles & Parts 127 671.90 0.0 0.0 9.7 1063.35 10.3 1.1 Halma PLC 2834 43.00 Spirax-Sarco Engineering PLC 13470 275.00
FTSE All-Share Investment Banking and Brokerage Services (31)10780.00 -0.15 10464.46 10796.71 10796.37 97.46 3.62 2.08 13.28 104.08 14185.62
FTSE Dev Europe Small Cap 713 1128.93 0.4 4.0 17.1
18.6 1800.83
1.7 Beverages 67 789.41 -0.2 -0.2 6.8 1299.57 7.9 2.1 Hargreaves Lansdown PLC 1635.5 -1.00 Sse PLC 1573.5 -6.00
FTSE All-Share Closed End Investments (187)13479.24 -0.18 13084.69 13503.88 13494.53 101.69 2.08 7.70 6.25 69.51 8146.43
FTSE North America Large Cap 239 933.28 0.4 2.5 12.4
13.2 1371.97
1.4 Food Producers 132 762.43 -0.1 -0.1 6.2 1275.98 7.9 2.2 Hikma Pharmaceuticals PLC 2486 21.00 St. James's Place PLC 1450.5 2.50
FTSE All-Share Life Insurance (6) 8294.73 1.14 8051.94 8201.11 8226.00 68.47 3.17 2.21 14.25 176.53 9628.78
FTSE North America Mid Cap 421 1232.19 -0.3 2.0 16.2
17.0 1.5 Household Goods & Home Construction
1670.54 60 597.61 -0.1 -0.1 3.7 970.86 5.0 2.3 HSBC Holdings PLC 436.15 -3.30 Standard Chartered PLC 489.50 -1.80
FTSE All-Share Nonlife Insurance (6) 3650.61 0.48 3543.75 3633.32 3633.86 77.89 4.63 1.14 18.91 54.25 7348.27
FTSE North America Small Cap 1279 1316.62 -0.6 2.6 15.1
15.6 1.2 Leisure Goods
1718.35 44 332.97 -0.3 -0.3 0.9 462.38 1.5 1.1 Imperial Brands PLC 1615 7.50 Standard Life Aberdeen PLC 286.60 1.80
FTSE All-Share Real Estate Investment and Services (16) 2728.20 -0.65 2648.34 2745.94 2726.58 79.42 1.41 1.98 35.89 18.99 7928.22
FTSE North America 660 612.53 0.2 2.4 13.1
13.9 1.4 Personal Goods
920.11 86 1145.63 0.2 0.2 8.7 1722.11 9.5 1.4 Informa PLC 536.00 6.00 Taylor Wimpey PLC 167.70 0.40
FTSE All-Share Real Estate Investment Trusts (40) 2756.12 -0.98 2675.45 2783.48 2753.98 80.79 2.42 -1.96 -21.10 14.58 3979.07
FTSE Developed ex North America 1514 323.19 0.2 3.5 10.3
11.9 594.32
2.2 Tobacco 14 1022.12 -0.3 -0.3 12.5 2653.49 14.9 6.0 Intercontinental Hotels Group PLC 5042 4.00 Tesco PLC 231.00 -0.75
FTSE All-Share Automobiles and Parts (2) 4974.67 -0.96 4829.06 5023.04 4985.20 31.74 0.66 -12.57 -12.06 0.32 5127.02
FTSE Japan Large Cap 174 462.54 0.2 4.2 2.03.0 656.03
2.0 Health Care 324 738.45 0.1 0.1 7.6 1149.88 8.7 1.7 Intermediate Capital Group PLC 2253 -87.00 Unilever PLC 4337.5 42.50
FTSE All-Share Consumer Services (4) 2686.94 0.87 2608.29 2663.84 2680.10 74.44 0.21 -1.61 -291.90 0.01 3362.88
FTSE Japan Mid Cap 333 673.47 -0.2 2.4 4.55.6 906.20
2.0 Health Care Equipment & Services 123 1484.19 0.3 0.3 6.7 1796.36 7.1 0.8 International Consolidated Airlines Group S.A. 194.84 0.12 United Utilities Group PLC 1031.5 4.50
FTSE All-Share Household Goods and Home Construction (11)15198.23 -0.23 14753.36 15233.35 15202.14 77.81 3.08 1.64 19.80 116.68 12405.75
FTSE Global wi JAPAN Small Cap 883 720.92 0.0 2.6 1.12.2 1005.54
2.1 Pharmaceuticals & Biotechnology 201 481.59 0.0 0.0 8.3 800.61 9.9 2.3 Intertek Group PLC 5458 38.00 Vodafone Group PLC 132.00 2.00
FTSE All-Share Leisure Goods (2) 28834.17 -1.51 27990.16 29275.29 29178.09 88.15 1.73 1.63 35.61 230.87 30569.55
FTSE Japan 507 191.67 0.1 3.8 2.53.5 304.33
2.0 Consumer Services 439 723.70 0.3 0.3 4.9 1018.14 5.3 0.8 Jd Sports Fashion PLC 909.00 -3.20 Weir Group PLC 1872 -2.00
FTSE All-Share Personal Goods (5) 33029.25 0.53 32062.45 32853.80 32830.03 79.25 0.00 0.00 61.30 0.00 24964.26
FTSE Asia Pacific Large Cap ex Japan 905 931.76 0.0 4.8 6.57.3 1.9 Food & Drug Retailers
1626.06 70 330.83 -0.2 -0.2 10.7 508.54 12.2 2.3 Johnson Matthey PLC 3139 61.00 Whitbread PLC 3263 8.00
FTSE All-Share Media (10) 9045.53 0.77 8780.76 8976.61 8960.48 81.71 1.90 1.26 41.85 117.67 6177.97
FTSE Asia Pacific Mid Cap ex Japan 929 1169.60 -0.1 6.1 13.9
14.9 1963.57
2.2 General Retailers 146 1304.89 0.4 0.4 3.0 1762.56 3.4 0.6 Just Eat Takeaway.Com N.V. 6463 102.00 Wpp PLC 1009 7.00
FTSE All-Share Retailers (22) 2633.73 -0.16 2556.63 2638.00 2634.55 73.70 0.76 4.67 28.27 12.45 3311.51
FTSE Asia Pacific Small Cap ex Japan 1933 726.85 0.0 6.9 11.8
12.6 2.0 Media
1189.91 82 487.78 0.8 0.8 4.0 690.38 4.3 0.7 Kingfisher PLC 347.10 2.80
FTSE All-Share Travel and Leisure (33) 8580.45 -0.84 8329.29 8652.98 8777.42 63.59 0.15 -40.48 -16.93 8.31 8814.28
FTSE Asia Pacific Ex Japan 1834 732.66 0.0 4.9 7.38.1 1.9 Travel & Leisure
1358.57 141 547.32 -0.5 -0.5 9.9 787.27 10.3 0.8
FTSE All-Share Beverages (6) 27299.04 1.20 26499.97 26975.95 26987.98 98.42 2.03 0.74 66.03 7.69 21162.84
FTSE Emerging All Cap 3418 967.30 0.2 6.3 8.79.6 2.0 Telecommunication
1604.91 89 163.72 -0.1 -0.1 6.3 363.48 8.3 3.9
FTSE All-Share Food Producers (10) 7736.06 0.86 7509.62 7669.78 7785.42 77.04 1.39 3.21 22.38 23.44 7217.31
FTSE All-Share Tobacco (2) 30248.57 1.53 29363.16 29791.27 29885.26 56.85 7.65 1.55 8.44 539.40 25446.27
FTSE Emerging Large Cap 868 919.57 0.2 6.1 7.28.1 1.9 Fixed Line Telecommuniations
1534.75 37 123.51 -0.3 -0.3 6.2 309.99 9.0 5.2 UK STOCK MARKET TRADING DATA
FTSE Emerging Mid Cap 975 1204.88 0.2 6.6 15.1
16.4 2.5 Mobile Telecommunications
2005.64 52 197.13 0.0 0.0 7.1 380.43 8.3 3.2
FTSE All-Share Construction and Materials (16) 8593.32 -0.13 8341.79 8604.18 8690.51 88.13 1.92 0.00 100663. 18.78 10095.13 Jun 15 Jun 14 Jun 11 Jun 10 Jun 09 Yr Ago
FTSE Emerging Small Cap 1575 979.02 0.1 7.9 14.9
15.8 2.2 Utilities
1557.14 197 330.58 0.4 0.4 3.1 738.74 4.9 3.3
11 Order Book Turnover (m) 704.61 369.62 369.62 369.62 199.78 305.66
FTSE Emerging Europe 84 434.56 0.3 8.0 17.3
19.7 4.5 Electricity
840.79 137 368.63 0.5 0.5 2.1 811.31 3.8 3.3
FTSE All-Share Aerospace and Defense (9) 4023.97 0.30 3906.18 4011.86 4067.69 71.83 2.44 0.15 271.29 55.09 4765.51 Order Book Bargains 826125.00 663833.00 663833.00 663833.00 799376.00 775299.00
FTSE Latin America All Cap 245 907.80 1.1 7.5 10.5
12.4 2.8 Gas Water & Multiutilities
1583.71 60 337.98 0.3 0.3 5.4 781.33 7.6 3.3
FTSE All-Share Electronic and Electrical Equipment (11)13260.63 0.65 12872.47 13174.51 13067.15 100.50 1.43 1.80 38.93 81.75 12830.23 Order Book Shares Traded (m) 1535.00 1065.00 1065.00 1065.00 1327.00 1229.00
FTSE Middle East and Africa All Cap 327 777.97 0.7 4.8 19.1
21.0 2.0 Financials
1365.57 859 297.04 -0.3 -0.3 17.7 547.01 19.3 2.3
FTSE All-Share General Industrials (9) 5634.57 -0.25 5469.64 5648.84 5640.98 84.99 2.94 0.76 44.94 74.82 7155.03 Total Equity Turnover (£m) 5968.82 5638.12 5638.12 5638.12 5574.63 4510.64
FTSE Global wi UNITED KINGDOM All Cap In 287 364.10 0.1 1.7 14.9
16.7 2.8 Banks
706.96 267 227.58 -0.4 -0.4 23.4 460.72 25.3 2.6
FTSE All-Share Industrial Engineering (4)18678.37 1.10 18131.63 18474.69 18530.21 101.96 0.76 2.69 48.87 106.96 24569.72 Total Mkt Bargains 1064340.00 874230.00 874230.00 874230.00 1030644.00 1006325.00
FTSE Global wi USA All Cap 1761 1061.60 0.1 2.4 13.0
13.7 1.3 Nonlife Insurance
1505.37 71 332.33 -0.1 -0.1 11.1 534.28 13.6 3.1
FTSE All-Share Industrial Support Services (31)10539.60 0.76 10231.10 10459.69 10442.49 104.91 1.52 1.31 50.40 59.16 11802.70 Total Shares Traded (m) 6138.00 4900.00 4900.00 4900.00 5125.00 5652.00
FTSE Europe All Cap 1443 538.36 0.3 3.7 14.3
16.3 2.3 Life Insurance
984.56 53 258.45 -0.4 -0.4 11.2 472.32 13.2 3.2
FTSE All-Share Industrial Transportation (9) 6286.40 0.47 6102.39 6256.98 6205.95 83.18 0.76 4.04 32.68 2.61 6390.88 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
FTSE Eurozone All Cap 654 532.40 0.4 3.3 14.9
16.7 1.9 Financial Services
968.61 210 484.10 -0.3 -0.3 15.3 718.34 16.1 1.3
FTSE All-Share Industrial Materials (1)24004.48 2.13 885.24 23504.39 24004.48 16032.84 1.31 2.37 32.20 213.54 29554.28 (c) Market closed.
FTSE EDHEC-Risk Efficient All-World 4017 536.89 -0.1 2.7 13.7
14.8 1.9 Technology
817.21 331 589.98 1.0 1.0 13.4 759.71 13.8 0.8
FTSE All-Share Industrial Metals and Mining (11) 6929.61 -1.85 6726.77 7059.98 7101.81 109.60 4.05 2.40 10.30 29.23 9527.82
FTSE EDHEC-Risk Efficient Developed Europe 575 424.85 0.3 3.9 13.8
15.4 2.0 Software & Computer Services
718.96 177 978.09 1.0 1.0 16.4 1174.31 16.7 0.5
FTSE All-Share Precious Metals and Mining (5)22745.11 -1.37 22079.33 23061.17 23189.37 112.98 4.61 1.79 12.12 659.31 15205.22
Oil & Gas 130 327.31 0.6 5.0 26.8
29.3 3.7 Technology Hardware & Equipment
623.79 154 468.30 1.1 1.1 9.8 644.40 10.3 1.2
FTSE All-Share Chemicals (7) 17636.09 0.79 17119.86 17497.49 17488.03 80.82 1.72 1.56 37.27 181.33 17166.40 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Oil & Gas Producers 89 312.79 0.7 5.1 29.5
32.0 3.7 Alternative Energy
609.22 15 212.04 1.9 1.9 -21.1 302.40 -20.8 0.5
FTSE All-Share Oil. Gas and Coal (14) 5420.21 1.48 5261.56 5341.14 5219.47 52.51 3.61 0.73 38.09 48.75 6444.43 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Real Estate Investment & Services 159 386.07 0.1 0.1 7.6 721.72 9.1 2.5
FTSE Sector Indices Real Estate Investment Trusts 99 547.27 0.4 0.4 20.4 1220.84 21.8 2.9 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Non Financials (351) 4892.47 0.27 4430.82 4879.32 4869.76 84.92 2.87 1.16 30.00 36.20 8404.34 FTSE Global Large Cap 1730 721.01 0.1 0.1 10.7 1155.31 11.7 1.7 liable for any loss arising from the reliance on or use of the listed information.
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
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day mid cap) - please see https://research.ftserussell.com/Products/indices/Home/indexfiltergeis?indexName=GEISAC&currency=USD&rtn=CAP&segment=global-developed–emerging. The trade names Fundamental Index®
FTSE 100 7156.74 7171.91 7170.44 7167.68 7170.17 7187.51 7173.26 7183.13 7171.57 7189.57 7155.92 and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Data provided by Morningstar | www.morningstar.co.uk
FTSE 250 22751.29 22802.16 22798.91 22785.71 22726.72 22752.60 22697.38 22750.54 22685.86 22819.12 22631.72 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
FTSE SmallCap 7298.75 7318.57 7315.80 7321.96 7323.34 7323.79 7319.37 7321.74 7312.99 7324.62 7298.28 of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE,
FTSE All-Share 4079.52 4088.33 4087.51 4085.96 4085.28 4093.95 4085.70 4091.86 4084.46 4094.85 4079.31 please see 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.
Time of FTSE 100 Day's high:11:49:30 Day's Low07:03:45 FTSE 100 2010/11 High: 7146.68(14/06/2021) Low: 6407.46(29/01/2021)
Time of FTSE All-Share Day's high:11:56:00 Day's Low07:04:00 FTSE 100 2010/11 High: 4074.57(14/06/2021) Low: 3641.93(29/01/2021)
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 Ashtead Group Pre 4472.600 4606.500 936.000 982.800 155.700 162.100 0.00000 33.50000 - 7.150 40.650 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- CML Microsystems Pre 12.470 14.963 0.010 1.178 141.130 8.980 0.00000 2.00000 - 2.000 4.000 06/03 226.00 AIM AREC Arecor Therapeutics PLC 240.50 1.68 258.00 238.00 6657.9
There are currently no rights offers by any companies listed on the LSE. Eckoh Pre 30.486 33.178 3.511 3.302 1.090 1.230 0.00000 0.00000 - 0.000 0.000 06/03 3.00 CDL Imperial X PLC 3.40 0.10 5.80 3.08 1324.5
Evgen Pharma Pre 0.194 0.000 3.213L 3.166L 1.820L 2.100L 0.00000 0.00000 - 0.000 0.000 06/01 3.50 AFP African Pioneer PLC 3.05 0.19 3.50 2.50 577.9
GB Group Pre 217.659 199.101 34.263 20.626 13.800 8.800 0.00000 0.00000 - 3.000 0.000 06/01 3.50 ASP African Pioneer PLC 3.05 0.19 3.50 2.50 577.9
IDOX Int 31.130 30.007 3.655 0.176 1.660 0.230L 0.00000 0.00000 - 0.300 0.000 06/01 3.50 ASP African Pioneer PLC 3.05 0.19 3.50 2.50 577.9
IG Design Group Pre 873.216 624.340 14.675 0.873L 0.084 0.199 0.00000 7.11300 - 3.900 10.800 05/28 45.00 AIM BELL Belluscura PLC 49.50 0.00 59.00 45.00 5605.4
Iomart Group Pre 111.883 112.581 12.464 16.784 9.300 12.500 0.00000 3.93000 - 2.600 6.530 05/28 40.00 AIM TRLS Trellus Health PLC 76.50 0.61 6000.00 40.00 12352.8
Montanaro UK Smaller Companies Inv Tr Pre 66.911 16.666L 39.980 9.960L 1.49000 1.14000 May 21 2.800 2.450 05/24 273.00 AIM DNM Dianomi PLC 328.50 0.70 337.00 285.00 9864.2
On The Beach Group Int 4.400 21.400 21.600L 34.100L 11.200L 21.100L 0.00000 0.00000 - 0.000 1.989 05/24 150.00 AIM KITW Kitwave Group PLC 162.25 0.83 174.39 143.90 11357.5
Oxford BioDynamics Int 0.250 0.188 3.505L 2.288L 3.300L 2.200L 0.00000 0.00000 - 0.000 0.000 05/21 5.00 OCTP Oxford Cannabinoid Technologies Holdings 4.05 0.00 8.00 3.80 3889.7
Pressure Technologies Int 14.494 13.901 0.240 1.473L 0.800 5.900L 0.00000 0.00000 - 0.000 0.000 PLC
Ramsdens Holdings Int 20.835 26.984 0.133L 2.284 0.300L 5.500 0.00000 0.00000 - 0.000 0.000 05/14 10.00 CIZ Bould Opportunities PLC 6.75 -0.38 13.00 5.50 1710.8
Renalytix AI 3rd 1.019 0.000 25.516L 6.867L 0.350L 0.120L 0.00000 0.00000 - 0.000 0.000 05/13 410.00 AWE Alphawave IP Group PLC 328.00 9.00 410.00 285.00 218108.8
05/11 102.00 AIM GLAN Glantus Holdings PLC 97.00 2.50 107.00 90.00 3518.7
Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 16 June 2021 ★ FINANCIAL TIMES 11

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 (€) CntJpRwy 18000 10.00 18455 0.00 0.85 -31.62 33683.06 Nordea Bk 94.95 0.53 95.22 63.54 0.74 15.07 46148.39 BlackRock 875.55 -1.23 890.00 515.72 1.71 26.67 133544.49 MondelezInt 63.76 -0.04 64.37 49.92 1.97 23.65 89557.36
ANZ 28.66 0.41 29.55 16.40 2.12 17.10 62641.22 Nokia 4.44 -0.09 4.95 2.70 - -11.82 30585.17 Denso 7805 48.00 7970 0.00 1.97-220.65 55865.11 SEB 109.35 0.50 111.60 75.56 3.66 12.57 28476.99 Boeing 245.64 0.50 278.57 141.58 - -11.63 143652.75 Monsanto 9.74 0.02 10.00 9.51 - - 243.50
BHPBilltn 49.22 0.27 51.82 33.73 3.27 26.68 111370.83 SampoA 39.26 0.40 41.40 29.54 3.97 539.34 26382.42 EastJpRwy 8360 25.00 8626 0.00 1.74 -8.26 28700.69 SvnskaHn 94.90 0.38 101.20 71.70 4.22 12.02 22148.68 Booking Holdings 2295.54 -9.50 2516 1532.83 - 1546.81 94238.37 MorganStly 89.94 -0.79 94.27 44.60 1.60 13.50 167332.06
CmwBkAu 103.45 2.09 103.72 62.64 2.98 27.19 140970.02 France (€) Fanuc♦ 27165 120.00 29700 0.00 0.78 65.69 49823.94 Swedbank 154.90 0.34 165.90 116.26 4.57 9.09 21043.19 BrisMySq 67.32 0.03 67.96 54.07 2.85 -23.89 150303.88 Netflix 494.16 -5.73 593.29 415.42 - 58.59 219112.38
CSL 301.72 5.08 320.42 242.00 1.01 36.57 105475.06 Airbus Grpe 113.18 0.78 114.18 57.87 - -300.97 107879.6 FastRetail 84060 -270.00 110500 0.00 0.59 86.24 80996.97 Telia Co 37.01 0.26 39.16 32.56 2.37 -6.76 18164.14 CapOne 160.73 2.02 168.00 57.30 0.64 30.05 72567.88 NextEraE 73.58 0.27 87.69 58.44 1.99 34.15 144323.13
NatAusBk 26.67 0.21 27.84 16.56 2.28 17.27 67573.9 AirLiquide 144.54 3.68 145.00 119.35 1.94 27.04 83048.89 Fuji Hvy Ind 2292.5 41.50 2504 1898.5 2.68 13.90 16017.95 Volvo 225.20 -0.60 240.80 141.95 2.60 19.97 42929.66 CardinalHlth 57.98 -0.35 62.96 44.65 3.45 12.10 16822.78 Nike 129.83 -1.53 147.95 93.44 0.81 60.49 165527.51
Telstra 3.58 - 3.61 2.66 2.89 23.21 32704.31 AXA 22.75 0.27 24.16 13.34 3.34 17.50 66721.86 Hitachi 6100 68.00 6178 0.00 1.80 15.72 53632.2 Switzerland (SFr) Carnival 28.43 -0.32 31.52 12.11 - -2.04 27677.76 NorfolkS 272.17 0.65 295.14 166.00 1.43 29.52 68108.1
Wesfarmers 56.31 1.31 56.73 41.59 2.79 32.66 49040.68 BNP Parib 56.47 0.02 57.92 28.79 - 10.23 85584.17 HondaMtr 3626 42.00 3660 0.00 2.55 13.68 59665.16 ABB 31.27 0.24 31.78 19.29 2.49 136.35 71458.57 Caterpillar 216.89 -2.13 246.69 118.01 1.96 38.54 118806.82 Northrop 375.16 2.93 379.03 282.88 1.58 13.45 60386.21
Westpc♦ 26.55 0.26 26.88 16.00 3.06 40.99 74814 ChristianDior 693.50 1.50 698.50 335.00 0.69 62.33 151801.95 JapanTob 2202 9.00 2227.5 0.00 7.11 11.38 40005.46 CredSuisse 9.64 0.06 13.50 8.50 2.81 22.47 27357.13 CharlesSch 72.10 0.09 76.37 31.63 1.03 33.00 130288.5 NXP 203.90 0.33 216.43 103.20 0.85 132.25 56225.49
Woolworths 43.50 0.59 43.94 35.66 2.24 37.48 42355.32 Cred Agr 12.46 - 13.49 6.51 - 13.61 46711.76 KDDI 3603 2.00 3767 2604 3.66 11.45 75414.07 Nestle 114.60 0.78 115.30 95.00 2.47 25.50 367480.22 Charter Comms 691.28 0.67 712.41 498.08 - 38.36 130421.14 Occid Pet 28.69 0.41 32.52 8.52 2.95 -1.78 26779.78
Belgium (€) Danone 59.30 -0.18 65.68 46.03 3.68 19.07 49448.31 Keyence 56820 1100 59310 41780 0.39 68.65 125530.82 Novartis 84.29 0.45 87.06 70.42 3.61 26.40 231452.58 Chevron Corp 109.34 1.37 113.11 65.16 4.86 -35.84 210813.99 Oracle 81.88 -0.75 85.03 50.91 1.18 19.49 236089.43
AnBshInBv 65.21 0.60 65.74 42.19 0.73-232.52 133896.39 EDF 11.82 -0.17 13.58 7.67 - 113.67 45262.88 MitsbCp 3052 -5.00 3298 0.00 4.86 12.54 41190.24 Richemont 115.25 0.15 116.90 56.08 0.87 46.56 66960.32 Chubb 166.93 0.47 179.01 111.93 1.91 13.28 75066.85 Pepsico 148.79 0.22 149.17 126.53 2.81 26.99 205572.92
KBC Grp 68.16 0.14 69.06 40.88 - 14.69 34441.58 Engie SA 12.33 0.02 13.87 10.10 - -16.70 36418.23 MitsubEst 1932.5 21.00 2047.5 0.00 1.71 15.72 24426.88 Roche 343.65 1.95 345.55 290.55 2.74 19.86 268724.66 Cigna♦ 236.32 -3.27 272.81 158.84 0.02 9.99 81092.16 Perrigo♦ 47.29 -0.44 58.83 38.20 1.96 -38.56 6315.54
EssilorLuxottica♦ 147.96 -0.54 149.84 103.05 0.81 748.89 78777.7 MitsubishiEle 1739 5.00 1817 0.00 2.27 19.98 33919.09 Swiss Re 85.36 0.56 94.96 62.22 6.57 -30.33 30164.81 Cisco 53.94 -0.24 55.35 35.28 2.74 22.00 227293.13 Pfizer 39.50 -0.14 43.08 29.95 3.97 30.91 221080.92
Brazil (R$)
Hermes Intl 1203 7.00 1210 679.00 0.39 87.58 154006.6 MitsuiFud 2748 49.00 2816.5 1645.5 1.76 13.44 24095.88 Swisscom 526.00 1.00 527.40 456.30 8.15 15.76 30327.59 Citigroup 74.48 -0.69 80.29 40.49 2.82 15.28 153943.36 Phillips66 91.34 -0.11 94.34 43.27 4.02 -18.29 39992.59
Ambev 19.24 -0.24 19.86 12.04 2.17 26.63 59631.9
LOreal 387.45 2.90 391.40 255.10 1.03 58.77 263424.29 MitUFJFin 608.80 4.10 660.30 392.80 4.67 14.79 75112.1 UBS 14.67 0.05 15.24 9.65 4.54 8.74 62989.66 CME Grp 216.28 -0.42 221.82 146.89 1.62 35.75 77664.86 PhilMorris 100.40 -0.10 100.87 68.37 4.85 17.75 156477.11
Bradesco 23.74 -0.11 24.57 16.11 2.24 15.16 22769.37
LVMH 677.80 5.20 680.70 363.75 0.71 69.94 414877.43 Mizuho Fin 1624.5 6.50 1732.5 1256 2.79 37.26 37471.15 Zurich Fin 374.00 2.50 411.30 297.80 5.16 15.80 62632.43 Coca-Cola♦ 55.26 -0.30 56.48 43.51 3.05 32.40 238241.92 PNCFin 187.17 0.06 203.88 97.09 2.53 28.56 79520.74
Cielo 3.93 -0.08 5.93 3.15 1.66 21.63 2102.54
Orange♦■ 10.11 0.16 11.15 8.63 6.17 5.69 32618.47 Murata Mfg 8563 132.00 10835 0.00 1.35 32.48 52566.62 Cognizant 70.53 -0.26 82.73 52.50 1.29 26.63 37198.36 PPG Inds 175.35 -0.03 182.97 98.41 1.24 34.35 41573.94
ItauHldFin 28.65 -0.18 29.97 21.10 2.86 15.44 27973.48 Taiwan (NT$)
PernodRic 178.95 1.60 182.10 131.65 1.55 163.51 56828.2 Nippon T&T 2894 -4.00 3018 2127 3.70 10.92 102546.98 ColgtPlm 83.37 -0.05 86.41 71.21 2.16 25.76 70524.19 ProctGmbl 135.34 0.43 146.92 113.76 2.39 24.37 331343.83
Petrobras 29.22 -0.04 32.34 17.74 0.83 62.04 42823.96 Chunghwa Telecom 114.50 - 117.00 106.50 3.65 26.56 32148.95
Renault 36.22 -0.62 41.42 19.67 - -1.18 12988.77 NipponTT 2894 -4.00 3018 2127 3.70 10.92 102546.98 Comcast 57.49 0.21 59.11 37.77 1.67 22.25 263582.73 Prudntl 104.03 -0.39 109.17 57.11 4.36-100.94 40987.82
Vale 111.81 -1.91 120.45 52.13 5.55 10.89 116351.66 Formosa PetChem 108.50 - 110.00 78.00 2.71 137.26 37409.4
Safran 123.14 0.04 127.45 80.64 - 148.03 63797.59 Nissan Mt 563.00 7.70 664.50 359.70 - -1.86 21585.71 ConocPhil 60.88 0.57 61.56 27.53 2.86 -23.54 82152.6 PublStor♦ 293.50 -1.13 296.11 183.22 2.78 42.90 51356.08
Canada (C$) HonHaiPrc 113.00 -0.50 134.50 74.10 3.77 15.32 56699.36
Sanofi 88.86 -0.03 95.82 74.92 3.69 8.74 135857.37 Nomura 585.40 -10.90 721.00 463.30 4.69 6.00 17195.15 Corning♦ 40.92 -0.55 46.82 25.11 2.25 29.25 34833.26 Qualcomm♦ 136.17 -1.14 167.94 83.10 1.95 19.13 153599.76
Bausch Hlth 37.38 -0.88 43.97 19.88 - -18.85 10998.59 MediaTek 989.00 -3.00 1185 491.50 1.08 37.77 56928.26
Sant Gbn 56.63 -0.11 58.60 29.00 - 64.07 36963.45 Nppn Stl 1921.5 -27.50 2354.5 0.00 - -8.13 16587.57 Costco 383.99 0.23 393.15 293.84 0.73 38.97 169751.48 Raytheon♦ 89.32 0.60 89.98 51.92 2.17 -38.20 135327.83
BCE 61.45 0.68 61.78 52.52 5.43 25.04 45644.85 TaiwanSem 609.00 2.00 679.00 310.00 1.62 29.93 571569.37
Schneider 132.68 2.58 140.62 87.78 2.00 33.46 91238.18 Panasonic 1266.5 6.50 1520 856.60 2.17 15.14 28227.63 CrownCstl 196.17 -0.91 200.47 146.15 2.59 81.00 84782.64 Regen Pharm 527.01 -1.74 664.64 441.00 - 16.76 55175.22
BkMontrl 127.34 0.84 129.14 70.29 3.26 15.86 67665.37 Seven & I 5006 96.00 5027 2937.5 2.19 22.14 40310.02 Thailand (THB) CSX 97.99 0.70 104.87 65.37 1.10 27.19 74213.86 S&P Global 398.50 2.13 398.81 303.50 0.71 38.41 95993.24
SocGen 26.27 -0.12 27.03 10.77 - -24.76 27180.1
BkNvaS 81.19 0.35 82.11 53.54 4.34 15.60 80892.72 ShnEtsuCh♦ 19175 270.00 20060 12110 1.26 25.87 72575.82 PTT Explor 40.75 -0.75 45.00 30.50 3.37 28.81 37356.69 CVS 84.76 0.14 90.61 55.36 2.43 15.03 111585.71 Salesforce 243.98 -2.28 284.50 171.27 - 54.30 225925.48
Total 39.69 0.87 42.19 24.51 6.62 -28.09 127408.73
Brookfield 61.13 0.92 61.16 38.77 0.99-405.80 79170.54 Softbank 8042 -14.00 10695 4915 0.60 18.12 125866.32 United Arab Emirates (Dhs) Danaher 245.60 -1.81 261.43 166.14 0.31 37.76 175181.29 Schlmbrg♦ 34.04 -0.01 36.87 13.70 1.50 -16.34 47599.24
UnibailR 79.39 -0.73 85.65 29.08 7.07 -1.47 13335.68
CanadPcR 98.11 0.21 100.00 66.43 3.58 5.54 53692 Sony 11015 195.00 12545 0.00 0.50 11.61 126180.34 Emirtestele 22.20 0.06 22.20 16.44 3.69 20.47 52561.96 Deere 337.96 2.42 400.34 148.12 0.92 30.14 105423.95 Sempra Energy 143.94 0.69 144.35 112.16 2.99 21.23 43579.38
Vinci 95.73 -0.28 96.95 64.86 1.36 41.85 69290.02
CanImp 145.13 0.75 146.05 89.42 3.94 16.23 53508.26 SumitomoF 3920 21.00 4354 2800 5.47 192.00 48927.99 Delta 45.35 -0.55 52.28 24.38 - -2.17 29007.92 Shrwin-Will 272.25 -1.52 293.05 178.66 0.68 35.89 72403.45
Vivendi 29.10 -0.09 32.35 21.67 2.14 22.21 41876.98 United Kingdom (p)
CanNatRs 46.02 0.49 46.21 19.77 3.64-126.23 44770.88 Takeda Ph 3800 63.00 4365 3239 5.21 30.13 54483.34 Devon Energy 29.07 0.09 31.99 7.73 1.49 -4.16 19675.93 SimonProp 130.40 -2.89 136.70 59.03 4.74 35.24 42838.85
Germany (€) AscBrFd♦ 2367 75.00 2528 1618 - 46.78 26398.43
CanNatRy♦ 135.31 0.54 149.44 115.63 1.71 27.62 78757.04 TokioMarine 5165 24.00 5746 4436 4.15 22.48 32725.51 DiscFinServ 122.20 1.51 125.38 45.40 1.48 32.94 37257.26 SouthCpr 62.30 -3.50 83.29 35.45 2.79 22.27 48162.46
Allianz 218.40 1.75 221.50 148.60 4.57 12.87 109192.88 AstraZen 8343 -5.00 10120 6499.8 2.47 37.99 148848.1
Enbridge 49.49 0.06 49.87 35.80 6.45 33.94 82305.13 Toyota 10075 175.00 10090 0.00 2.40 14.16 298630.15 Disney 176.29 -1.89 203.02 108.02 - -62.89 320306.95 Starbucks 111.85 -0.60 118.98 71.06 1.57 128.87 131681.01
BASF 67.05 -0.19 72.88 45.92 4.87-102.66 74679.86 Aviva 423.30 6.40 426.40 247.40 3.07 8.86 23931.88
GtWesLif 36.29 0.01 38.00 23.06 4.76 11.61 27669.58 DominRes 78.22 -0.05 86.95 67.85 4.55 41.70 63086.33 StateSt 85.08 0.29 89.28 56.63 2.50 13.73 29588.12
Bayer 53.61 0.40 73.63 39.91 5.43 -3.25 63867.58 Mexico (Mex$) Barclays 179.22 -0.18 190.58 88.90 - 13.29 43081.91
ImpOil♦ 41.55 0.56 42.36 14.86 2.09 -16.67 25040.75 DukeEner 102.98 0.45 108.00 77.58 3.82 58.43 79214.17 Stryker 255.89 0.20 268.04 171.75 0.96 67.92 96404.13
BMW 94.41 -0.38 96.39 53.85 2.75 15.85 68920.21 AmerMvl 15.94 -0.19 16.30 12.71 2.39 13.52 35766.94 BP 332.70 2.30 358.75 188.52 5.69 -8.21 93413.19
Manulife 24.59 - 27.68 17.58 4.49 8.52 39204.82 DuPont 81.30 -0.25 87.27 49.01 1.52 -19.97 43263.17 Sychrony Fin 49.69 1.05 50.96 21.04 1.81 13.71 28896.74
Continental 128.36 -0.36 132.68 79.04 2.43 -25.66 31132.09 FEMSA UBD 171.24 -0.10 172.77 112.72 1.66-121.89 18406.45 BrAmTob 2845.5 50.00 3206 207.50 7.39 10.20 74738.23
Nutrien 76.86 -0.56 79.67 41.50 2.94 75.59 35978.28 Eaton 146.84 0.84 149.38 82.44 2.05 40.83 58515.74 T-MobileUS 146.29 1.03 148.70 100.11 - 59.89 182396.59
Daimler 79.22 0.30 80.41 34.30 2.81 10.95 102775.18 WalMrtMex 65.17 0.25 70.40 49.81 1.34 33.74 56597.99 BT 197.35 5.50 199.35 94.68 - 13.52 27584.47
RylBkC 127.42 1.01 127.43 89.11 3.32 16.12 149035.66 eBay♦ 65.66 -0.23 67.42 45.36 1.03 16.97 44731.64 Target 230.88 -2.19 236.80 115.23 1.19 26.05 114221.84
Deut Bank 11.59 0.02 12.56 6.75 - 18.59 29052.71 Netherlands (€) Compass 1624 14.00 1657.03 1024.5 1.66 203.00 37625.04
Suncor En 31.09 0.46 31.15 14.28 3.47 -11.15 38431.6 Ecolab 214.99 1.75 230.00 181.25 0.91 61.90 61473.68 TE Connect 136.64 -0.46 139.58 75.70 1.43 42.62 45121.89
Deut Tlkm 17.87 0.08 17.99 12.59 3.49 19.53 103192.66 ASML Hld 578.50 0.80 586.10 289.20 0.44 54.38 294285.14 Diageo 3478.5 44.00 3542.5 2253 2.01 71.72 123363.16
ThmReut 121.23 1.70 122.03 90.06 1.57 41.99 49331.47 Emerson 98.14 0.76 99.09 58.67 2.11 27.60 58854.56 Tesla Mtrs 605.40 -12.29 900.40 181.70 - 587.04 583200.25
DeutsPost 57.01 0.11 57.47 28.90 2.10 23.23 85660.14 Heineken 98.18 -0.04 100.40 74.26 1.81 57.75 68577.72 GlaxoSmh♦ 1417 9.60 1678.62 1190.8 5.65 13.60 98170.04
TntoDom 87.58 0.65 89.12 57.44 3.53 13.59 130888.57 EOG Res 84.74 -0.12 87.99 31.22 1.72 -79.06 49454.7 TexasInstr 189.44 -0.82 197.58 120.80 2.07 28.11 174952.3
E.ON 10.20 0.03 10.81 8.27 4.69 23.93 32676.97 ING 11.24 0.03 11.68 5.65 - 18.63 53203.16 Glencore 321.00 -6.65 339.40 150.59 - -31.34 65229.83
TrnCan 64.69 0.53 66.14 50.61 4.93 13.85 51978.29 EquityResTP 79.78 -1.13 82.05 45.43 3.08 46.48 29838.15 TheTrvelers♦ 153.05 -0.20 162.71 105.67 2.27 13.55 38486.76
Fresenius Med 69.36 0.38 79.96 55.18 1.80 16.84 24633.68 Unilever 50.37 0.41 53.66 43.00 0.74 26.54 185667.21 HSBC 436.15 -3.30 462.55 281.50 2.47 20.75 123193.23
China (HK$) Imperial Brands 1615 7.50 1686 1142 11.50 10.22 21698.75 Exelon 47.09 -0.02 47.24 33.97 3.35 22.73 46015.18 ThrmoFshr 471.52 1.45 532.57 333.85 0.19 28.67 185320.51
Fresenius SE 45.49 0.33 46.53 31.03 1.92 14.30 24947.8 Norway (Kr)
AgricBkCh♦ 2.76 -0.05 3.30 2.38 7.98 3.87 10929.8 LlydsBkg 47.92 0.08 59.94 23.59 - 19.17 48647.39 ExxonMb 63.57 1.50 64.02 31.11 5.64 -11.75 269104.9 TJX Cos 64.83 -0.30 74.65 48.73 0.36 902.70 78216.56
HenkelKgaA 81.40 1.10 86.50 70.15 2.34 24.24 25644.38 DNB 187.90 -1.10 189.75 125.30 4.46 14.20 34949.6
Bk China♦ 2.78 -0.05 3.19 2.33 8.33 3.71 29949.32 Natl Grid 927.00 7.00 998.80 805.40 5.24 21.86 43833.76 Facebook 336.14 -0.63 339.92 207.11 - 28.19 805407.28 Truist Financial Corp 56.45 -0.24 62.69 33.47 3.29 17.78 75916.51
Linde 239.95 1.65 250.65 173.30 1.36 60.07 151315.88 Equinor 187.40 -4.76 193.40 116.30 2.58 -24.20 72992.37
BkofComm 5.13 -0.09 5.26 3.66 7.44 4.08 23139.34 Natwest Group 206.00 0.90 214.20 90.54 1.46 -58.86 34725.54 Fedex 297.15 4.16 319.90 127.29 0.88 26.14 78846.4 UnionPac 222.76 0.14 231.26 161.41 1.78 28.22 147980.03
MuenchRkv 235.75 1.85 269.30 194.10 4.32 26.27 40051.81 Telenor 145.25 1.20 161.45 138.25 6.01 13.28 24386.94
BOE Tech 0.80 - 1.10 0.51 - -8.00 20.50 Prudential 1501.5 16.50 1598.5 861.00 1.53 25.15 54727.16 FordMtr 14.85 -0.03 16.46 5.74 - 14.69 58204.16 UPS B 201.32 0.23 219.59 99.59 2.07 126.84 145614.6
SAP 120.26 0.34 143.32 89.93 1.30 26.71 179156.86
Ch Coms Cons 3.88 -0.02 5.24 3.21 7.26 3.15 2208.62 Qatar (QR) ReckittB 6604 38.00 8020 5782 2.64 41.46 65514.82 Franklin 33.85 -0.07 35.94 17.97 3.32 21.05 17071.32 USBancorp 58.00 -0.16 62.47 34.01 2.99 18.39 86401.32
Siemens 138.60 2.86 145.96 85.54 2.93 25.78 142862.34
Ch Evrbrght 3.15 -0.08 3.97 2.40 8.19 4.27 5145.28 QatarNtBk 18.15 0.18 19.00 16.35 2.54 15.29 46034.36 RELX 1928.5 19.00 1961 1484.9 2.37 30.51 52523.52 GenDyn 192.16 1.32 197.51 129.17 2.34 17.03 54303.99 UtdHlthcre 397.62 -1.54 425.98 273.71 1.25 24.07 375234.84
Volkswgn 295.40 -1.40 357.40 131.80 1.69 17.11 105706.17
Ch Rail Cons 5.12 -0.01 7.60 4.07 4.91 2.71 1369.57 Russia (RUB) RioTinto 6014 -78.00 6876.26 4226.5 4.68 13.71 113630.77 GenElectric 13.41 -0.07 14.42 5.93 0.30-121.87 117677.68 ValeroEngy 81.59 -0.36 84.95 35.44 4.91-115.81 33350.74
Ch Rail Gp 4.03 -0.02 4.85 3.33 5.02 3.12 2184.43 Hong Kong (HK$) GenMills 62.37 -0.28 66.14 53.96 3.23 15.02 38043.91 Verizon 57.34 0.16 61.95 52.85 4.45 12.29 237391.48
Gzprm neft 275.16 -1.86 13230.22 2.25 - - 90155.37 RollsRoyce 108.00 0.64 137.45 34.59 - -2.04 2829.66
ChConstBk 6.18 -0.08 6.74 4.93 6.26 4.78 191415.46 AIA 93.95 -1.65 109.30 68.85 1.41 24.47 146413.82 GenMotors 60.33 -0.47 64.30 23.33 0.65 13.52 87511.72 VertexPharm 190.90 -3.90 306.08 190.72 - 17.82 49417.46
Lukoil 6506.63 - 6759.59 3718.45 - - 62395.87 RylDShlA 1484.6 26.20 1718.36 878.10 3.18 -9.96 96145.79
China Vanke 24.80 -0.55 35.00 22.95 4.93 5.66 6049.87 BOC Hold 27.20 -0.50 29.55 20.05 5.46 10.52 37049.24 GileadSci♦ 67.91 -0.25 78.94 56.56 4.13 658.86 85164.97 VF Cp 80.74 -0.62 90.79 56.70 2.46-170.31 31678.84
MmcNrlskNckl♦ 24890-1406.34 28011.97 1902.39 - - 54513.86 StandCh 489.50 -1.80 533.20 334.25 1.33 24.47 22734.01
ChinaCitic 4.08 -0.08 4.29 2.93 7.13 3.83 7822.51 Ch OSLnd&Inv 19.30 -0.44 27.05 14.92 5.82 3.95 27213.63 GoldmSchs♦ 367.72 -5.20 393.26 185.52 1.40 14.42 124937.35 ViacomCBS 41.37 -1.26 101.97 21.67 2.39 10.76 25053.11
Novatek 1570 20.80 13307.81 953.54 - - 65977.5 Tesco♦ 231.00 -0.75 317.55 217.10 5.02 17.24 26644.55
ChinaLife 15.58 -0.14 21.90 15.32 5.74 7.20 14935.85 ChngKng 52.00 -0.55 53.25 35.65 3.81 11.40 24430.27 Halliburton 23.71 0.11 25.00 10.60 0.78 -11.67 21095.24 Visa Inc 234.11 0.03 237.50 179.23 0.54 47.37 396068.73
Rosneft 535.65 2.82 39143.78 345.00 - - 78571.18 Vodafone 132.00 2.00 142.74 100.54 6.18 17.02 49601.27
ChinaMBank 67.25 -1.15 72.45 35.05 2.16 14.05 39775.06 Citic Ltd♦ 8.54 -0.25 9.32 5.20 4.65 4.24 32005.69 HCA Hold♦ 207.03 -0.35 217.36 91.21 0.24 15.15 68456.43 Walgreen 54.32 -0.12 57.05 33.36 3.45 -75.82 46949.58
Sberbank 312.52 2.63 568.52 2.82 - - 93373.7 WPP♦ 1009 7.00 1024.46 558.00 0.99 -4.15 17996.84
ChinaMob 48.00 -0.60 60.40 39.00 7.50 7.45 126618.13 Citic Secs 19.86 -0.44 22.00 14.34 3.05 13.25 5829.31 Hew-Pack 29.46 0.07 36.00 15.67 2.52 12.12 35388.99 WalMartSto 139.84 -0.72 153.66 117.01 1.58 28.70 391852.09
Surgutneftegas 36.35 - 43.50 30.34 - - 17974.46 United States of America ($)
ChinaPcIns♦■ 25.40 - 42.75 20.20 5.77 8.11 9081.64 CK Hutchison 59.40 -0.40 65.80 45.80 5.06 7.62 29508.62 HiltonWwde 129.20 0.59 132.69 69.83 0.12 -48.59 35986.56 WellsFargo 45.10 -0.06 48.13 20.76 2.79 106.72 186403.41
CNOOC♦ 8.92 -0.22 10.60 6.50 8.12 13.02 51307.52 Saudi Arabia (SR) 21stC Fox A 37.54 -0.14 44.80 23.93 1.26 14.28 12273.26
ChMinsheng 3.98 -0.08 5.53 3.85 11.26 4.91 4266.23 HomeDep 304.21 -5.11 345.69 234.31 2.02 24.84 323453.85 Williams Cos♦ 27.54 0.02 28.35 17.48 5.99 157.16 33448.48
HangSeng 158.70 -0.50 166.70 110.00 4.36 18.40 39088.58 AlRajhiBnk 113.00 3.40 115.00 56.50 0.91 23.90 75329.33 3M 200.03 -1.33 208.95 148.80 3.01 20.05 115952.39
ChMrchSecs 18.97 -0.28 28.18 13.88 1.76 16.69 21990.51 Honywell 222.92 -0.25 234.02 137.53 1.68 33.38 154830.34 Yum!Brnds 118.12 0.06 122.73 84.17 1.64 38.98 35186.59
HK Exc&Clr 464.40 -3.80 587.00 290.20 1.49 49.52 75853.64 Natnlcombnk 54.20 0.30 59.50 35.60 2.29 14.30 43357.68 AbbottLb 110.82 0.34 128.54 86.16 1.34 43.19 196906.14
Chna Utd Coms 4.48 -0.07 5.72 4.01 1.34 23.89 21520.34 HumanaInc 415.30 0.18 475.44 365.06 0.63 14.45 53579.69 Venezuela (VEF)
MTR♦ 43.15 -0.25 49.00 37.65 2.94 -53.62 34373.2 SaudiBasic 124.60 -0.40 128.20 86.10 3.076033.64 99674.67 Abbvie 115.23 -0.18 118.28 79.11 4.22 41.11 203512.97
ChShenEgy 17.54 -0.12 18.32 11.94 8.76 7.04 7632.1 IBM 149.43 -0.61 152.84 105.92 4.46 24.89 133514.65 Bco de Vnzla 415000-10000.00 500000 6500 173.41 - 485.65
SandsCh 33.65 -0.30 40.55 26.50 3.03 -22.35 35085.3 SaudiTelec 137.00 -2.20 139.80 94.00 2.99 24.25 73062.76 Accenture 287.62 1.91 294.50 194.83 1.18 33.82 191300.3
ChShpbldng 4.08 -0.01 5.44 3.94 - -255.56 11651.42 IllinoisTool 232.24 -0.19 242.07 160.34 1.96 33.99 73360.61 Bco Provncl 5250000 50000 6900000 450000 - -16.05 181.64
SHK Props 120.90 -1.10 126.00 90.50 4.22 15.65 45134.89 Singapore (S$) Adobe 552.06 -4.89 561.36 397.00 - 47.73 263884.68
ChStConEng 4.86 -0.06 5.70 4.68 3.80 4.20 30852.08 Illumina 449.60 -2.54 555.77 260.42 - 102.88 65641.6 Mrcntl Srvcs 5699000-1000.00 6600000 497000 0.02 2.57 111.33
Tencent 600.00 4.00 775.50 445.00 0.23 29.69 741696.74 DBS♦ 30.07 0.41 30.60 19.45 4.03 13.90 58033.15 AEP 85.10 -0.04 94.21 74.80 3.46 18.24 42526.26
ChUncHK♦ 4.20 -0.05 6.70 3.95 4.30 8.04 16556.34 Intcntl Exch 114.08 0.57 121.97 90.01 1.10 29.87 64197.5
JardnMt US$ 62.58 -0.19 68.88 37.37 2.83 -56.75 45159.81 Aetna - - - - - - -
CNNC Intl 5.01 -0.09 5.77 4.05 2.43 12.59 12179.98 India (Rs) Intel 57.94 -0.26 68.49 43.61 2.36 12.75 233941.53 Closing prices and highs & lows are in traded currency (with variations for that
OCBC♦ 12.33 0.10 12.77 8.36 3.69 14.89 41570.98 Aflac 55.17 -0.26 57.57 33.37 2.17 6.96 37497.24
CSR 3.65 -0.04 4.22 2.53 4.97 7.36 2055.41 Bhartiartl 542.50 3.15 623.00 394.00 0.38 -9.65 40639.35 Intuit 474.47 -2.50 478.19 274.19 0.48 70.07 129653.32 country indicated by stock), market capitalisation is in USD. Highs & lows are
SingTel 2.36 0.03 2.63 2.00 5.50 21.85 29352.8 AirProd 299.78 0.66 327.89 229.17 1.84 34.10 66345.59
Daqin 6.51 0.05 7.19 6.32 7.35 8.70 15116.26 HDFC Bk 1490.25 10.80 1641 952.00 - 27.05 112165.4 John&John 165.15 -0.22 173.65 133.65 2.50 28.58 434905.35 based on intraday trading over a rolling 52 week period.
UOB♦ 26.11 0.13 26.84 18.85 3.73 15.01 32937.56 Alexion 181.41 -0.24 182.72 99.91 - 57.68 40095.1
GuosenSec 10.62 -0.22 16.14 10.42 1.88 14.79 14641.63 Hind Unilevr 2391.95 27.35 2505.9 2000.05 1.61 68.65 76658.18 JohnsonCn 66.47 0.31 68.33 32.70 1.61 50.86 47640.05 ♦ ex-dividend
Allstate 130.63 -0.35 140.00 84.97 1.70 7.32 39103.93
HaitongSecs 6.93 -0.15 9.42 6.07 4.87 5.85 3044.06 HsngDevFin 2545.1 5.90 2896 1623 0.85 24.82 62678.26 South Africa (R) JPMrgnCh 154.39 -3.18 167.44 90.78 2.40 16.87 467358.31
Alphabet 2433.98 -14.93 2455.51 1351.65 - 31.77 732011.8 ■ ex-capital redistribution
Hngzh HikVDT 60.72 -1.28 70.48 28.32 1.15 40.21 77407.91 ICICI Bk 645.30 10.15 679.40 326.05 - 28.63 60937.41 Firstrand 56.23 -0.61 59.82 35.52 2.51 22.97 22846.27 Kimb-Clark♦ 129.29 -0.24 160.16 128.02 3.44 18.98 43624.84
Altria 47.78 -0.30 52.59 35.83 7.31 20.00 88423.48 # price at time of suspension
Hunng Pwr 2.90 -0.01 4.12 2.44 5.81 59.33 1756.11 Infosys♦ 1473.9 12.10 1477.55 692.10 1.47 33.06 85665.88 MTN Grp 106.85 -0.94 109.41 51.26 3.22 11.78 14582.83 KinderM 18.81 -0.03 19.29 11.45 5.70 22.74 42596.8
Amazon 3371.86 -12.01 3554 2508 - 62.771700509.03
IM Baotou Stl 1.57 -0.04 2.24 1.07 - 59.61 7767.57 ITC 207.05 -0.25 239.20 163.35 5.07 18.56 34762.15 Naspers N 2984.13 -5.87 3888 2799.68 - 29.17 94132.85 Kraft Heinz♦ 42.57 -0.26 44.95 28.56 3.84 94.74 52063.27
AmerAir 22.57 -0.42 26.09 10.63 - -1.47 14476.02
In&CmBkCh 4.98 -0.06 5.75 3.96 6.39 4.79 55685.32 L&T 1510.8 -4.95 1593 843.00 1.23 68.63 28943.07 South Korea (KRW) Kroger 37.71 -0.70 42.99 30.35 1.85 11.24 28546.49
AmerExpr 165.39 1.58 167.14 89.11 1.06 26.55 132858.26
IndstrlBk 20.92 -0.64 28.07 15.50 3.63 6.51 64091.85 OilNatGas 125.35 0.55 128.50 64.10 4.12 168.33 21509.38 HyundMobis 289000 1000.00 405000 183500 1.47 16.64 24525.7 L Brands 64.00 -1.74 71.99 13.18 0.48 20.79 17716.56
AmerIntGrp 51.02 -0.09 54.08 25.57 2.59 -7.19 43778.05
Kweichow 2193 14.19 2627.88 1393.13 0.77 58.08 430272.66 RelianceIn 2250 5.10 2369.35 1585.3 0.30 33.75 207528 KoreaElePwr 26650 -50.00 30050 18700 4.60 8.26 15316.33 LasVegasSd 54.17 0.02 66.77 42.58 - -21.74 41384.35
AmerTower 269.76 -1.18 272.20 197.50 1.71 61.30 119988.19
Midea 0.62 -0.01 0.85 0.52 - -3.82 24.05 SBI NewA 429.50 -0.85 441.95 169.25 - 15.98 52283.77 SK Hynix 128500 1500 150500 71300 0.96 17.45 83749.6 LibertyGbl 27.88 0.12 29.07 18.73 - -10.02 5028.36
Amgen 239.72 -1.47 276.69 210.28 2.79 19.45 137732.08
New Ch Life Ins 27.30 -0.40 37.30 25.25 6.19 4.42 3637.05 SunPhrmInds 673.20 -3.90 721.85 452.25 0.61 64.78 22031.78 SmsungEl 80900 400.00 96800 50600 3.92 19.88 432368.31 Lilly (E) 223.44 -2.66 235.85 129.21 1.40 32.76 214284.65
Anthem♦ 381.63 -1.88 406.00 244.10 1.06 19.93 93438.54
PetroChina 3.55 -0.02 3.67 2.16 4.50 28.30 9649.58 Tata Cons 3262.75 -13.60 3354.35 2009.25 0.91 36.75 164622.32 Spain (€) Linde♦ 290.02 -0.89 305.71 197.26 1.37 59.88 150819.02
Aon Cp 250.79 0.73 260.97 177.21 0.73 26.81 56590.07
PingAnIns 79.70 -1.20 103.60 77.10 3.19 8.13 76470.53 Israel (ILS) BBVA 5.37 0.03 5.40 2.13 - 11.07 43420.81 Lockheed♦ 390.57 1.46 402.38 319.81 2.61 15.31 108551.29
Apple 129.93 -0.55 145.09 83.15 0.64 28.47 2168223.9
PngAnBnk 23.22 -0.15 25.31 12.52 - 16.40 70378.46 TevaPha 35.90 0.45 45.29 28.79 - -2.97 12102.31 BcoSantdr 3.43 -0.01 3.51 1.44 - -7.40 72042.39 Lowes 187.14 -2.52 215.22 123.09 1.26 23.54 132287.42
Aptiv 157.08 -0.40 160.14 71.80 0.14 22.88 42482.94
Pwr Cons Corp 3.80 -0.07 4.88 3.43 1.04 7.49 6614.31 CaixaBnk 2.78 -0.03 2.90 1.52 2.50 2.82 27134.72 Lyondell 107.05 -1.47 118.02 60.04 4.01 14.93 35792.59
Italy (€) ArcherDan 64.42 -0.81 69.30 37.54 2.30 17.14 35988.8
SaicMtr 21.10 1.19 28.80 16.90 4.16 9.42 38503.55 Iberdrola 10.83 0.01 12.57 9.40 3.84 27.60 84250.75 Marathon Ptl 63.12 0.13 64.84 26.56 3.79 -3.60 41195.26
Enel 8.08 -0.02 9.05 6.73 4.20 31.40 99615.27 AT&T 29.22 0.13 33.88 26.35 7.34 -37.81 208645.08
ShenwanHong 0.07 - 0.10 0.03 - -7.65 81.28 Inditex 31.08 -0.71 32.85 20.86 1.16 85.18 117464.03 Marsh&M 140.47 0.84 140.53 101.51 1.35 31.48 71433.48
ENI 10.73 0.01 10.80 5.73 5.33 -4.27 46932.55 AutomData♦ 199.40 0.23 200.51 127.31 1.88 33.90 84848.35
ShgPdgBk 10.03 -0.14 12.69 9.22 5.97 5.68 45981.89 Repsol 11.47 - 11.50 5.04 6.73 -8.22 21248.42 MasterCard 367.83 1.31 401.50 281.20 0.46 55.25 361541.97
Generali 17.18 0.03 17.92 11.18 3.03 13.65 32938.94 Avago Tech 473.11 -2.72 495.14 292.41 2.89 53.31 194098.37
Sinopec Corp♦ 4.15 -0.08 4.69 2.95 5.58 5.90 13640.76 Telefonica 4.09 -0.03 4.85 2.71 9.85 16.37 26972.12 McDonald's 236.47 -0.51 238.18 178.88 2.20 36.36 176446.34
IntSPaolo 2.45 0.00 2.49 1.38 - 19.25 57751.42 BakerHu 24.74 - 26.57 12.13 2.97 75.72 19144.89
Sinopec Oil 2.00 -0.03 2.37 1.67 - 83.68 4238.8 McKesson♦ 193.57 0.66 204.66 139.77 0.88 -7.04 30620.12
Unicred 10.66 -0.08 11.04 6.09 - -7.72 28920.75 Sweden (SKr) BankAm♦ 40.94 -0.43 43.49 22.39 1.80 17.21 350785.02
Denmark (kr) Medtronic 124.56 0.41 132.30 87.68 1.88 57.00 167915.95
Japan (¥) AtlasCpcoB 447.60 8.20 482.40 333.60 1.53 37.07 20960.91 Baxter 82.08 -0.70 91.45 74.79 1.22 38.83 41271.58
DanskeBk 115.10 -0.35 125.60 80.28 1.72 11.01 16182.21 Merck 75.25 -0.20 87.80 15.32 3.40 26.27 190537.39
AstellasPh 1944.5 33.00 1949 0.00 2.32 23.69 32885.9 Ericsson 108.80 -0.62 121.80 83.50 1.57 20.01 40115.99 BectonDick♦ 241.15 -1.57 284.97 219.50 1.37 42.25 70130.88
MollerMrsk 18410 70.00 18895 7456 0.76 20.09 28316.86 Metlife 63.20 -0.11 67.68 34.82 2.97 10.80 55326.23
Bridgestne 4997 16.00 5049 3078 2.42-137.43 32396.33 H&M 203.80 -6.00 229.50 132.25 - -192.35 35724.69 BerkshHat 424652.37-1227.63 445000 262700 - 15.45 270923.97
NovoB 519.50 3.20 521.90 400.20 1.72 27.77 150158.51 Microsoft 259.44 -0.45 263.19 191.46 0.84 34.62 1953991.7
Canon 2623 23.50 2742 0.00 3.35 30.08 31779.64 Investor 195.65 -0.15 197.70 119.03 4.49 0.82 42778.42 Biogen 403.24 -2.90 468.55 223.25 - 20.35 60709.7
Mnstr Bvrg 92.78 -0.62 99.24 66.62 - 34.10 49040
BkNYMeln 49.76 0.12 52.90 32.65 2.57 12.61 43563.93

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
Adobe 552.06 556.95 -4.89 -0.88 42.86 8.4 13.37 AgricBkCh 2.76 2.81 -0.05 -1.78 -0.38 -12.1 -9.80 Jun 15 date Coupon S* M* F* price yield yield yield US Jun 15 date Coupon S* M* F* price yield yield yield US
CSR 3.65 3.69 -0.04 -1.08 0.27 8.0 9.88 Caterpillar 216.89 219.01 -2.13 -0.97 -23.28 -9.7 -10.53 High Yield US$ US$
RylDShlA 1484.60 1458.40 26.20 1.80 100.80 7.3 -98.78 VertexPharm 190.90 194.80 -3.90 -2.00 -20.23 -9.6 -12.05 HCA Inc. 04/24 8.36 BB- Ba2 BB 113.75 4.24 0.00 0.12 - FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa1 A- 129.00 2.54 -0.01 -0.05 -
ThrmoFshr 471.52 470.07 1.45 0.31 30.52 6.9 2.65 SouthCpr 62.30 65.80 -3.50 -5.32 -6.56 -9.5 -18.28 High Yield Euro The Goldman Sachs Group, Inc. 02/28 5.00 BBB+ A3 A 117.21 2.47 0.00 0.32 -
Lukoil 6506.63 6506.63 0.00 0.00 406.63 6.7 12.96 Carnival 28.43 28.75 -0.32 -1.11 -2.65 -8.5 4.60 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 NationsBank Corp. 03/28 6.80 BBB+ Baa1 A- 127.69 2.72 -0.01 0.06 -
Sempra Energy 143.94 143.25 0.69 0.48 8.50 6.3 4.27 Citic Ltd 8.54 8.79 -0.25 -2.84 -0.69 -7.5 -1.15 GTE LLC 04/28 6.94 BBB+ Baa2 A- 128.27 2.80 0.00 -0.11 -
BT 197.35 191.85 5.50 2.87 11.60 6.2 -98.80 AmerAir 22.57 22.99 -0.42 -1.83 -1.65 -6.8 0.78 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 130.43 2.62 -0.07 -0.22 -
Infosys 1473.90 1461.80 12.10 0.83 84.25 6.1 11.96 IndstrlBk 20.92 21.56 -0.64 -2.97 -1.47 -6.6 -8.92 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Barclays Bank plc 01/29 4.50 A A1 A+ 96.46 5.02 0.00 0.02 -
BrisMySq 67.32 67.29 0.03 0.04 3.62 5.7 3.75 JPMrgnCh 154.39 157.57 -3.18 -2.02 -10.61 -6.4 -5.87 Colombia 01/26 4.50 - Baa2 BBB- 109.50 2.33 0.16 0.52 1.28
Brazil 04/26 6.00 - Ba2 BB- 115.15 2.78 -0.01 0.65 1.73 Euro
AstraZen 8343.00 8348.00 -5.00 -0.06 408.00 5.1 -98.94 ArcherDan 64.42 65.22 -0.81 -1.23 -4.32 -6.3 -4.82 Electricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -
MitsubEst 1932.50 1911.50 21.00 1.10 94.50 5.1 8.07 Cielo 3.93 4.01 -0.08 -2.00 -0.26 -6.2 8.86 Poland 04/26 3.25 - A2 A- 111.22 0.98 0.03 0.16 -0.07
Mexico 05/26 11.50 - Baa1 BBB- 149.00 1.61 0.00 -0.12 0.56 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 124.42 0.68 0.00 -0.11 -
Renault 36.22 36.84 -0.62 -1.67 1.75 5.1 8.43 ChinaPcIns 25.40 25.40 0.00 0.00 -1.65 -6.1 -8.93 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -
PetroChina 3.55 3.57 -0.02 -0.56 0.17 5.0 14.52 Lyondell 107.05 108.52 -1.47 -1.35 -6.71 -5.9 -6.13 Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07
Turkey 03/27 6.00 - B2 BB- 102.88 5.43 0.14 0.83 4.38 Finland 04/31 0.75 AA+ Aa1 AA+ 111.08 -0.27 0.00 -0.05 -0.87
Ch OSLnd&Inv 19.30 19.74 -0.44 -2.23 0.90 4.9 4.44 Citigroup 74.48 75.16 -0.69 -0.91 -4.61 -5.8 -2.66
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
Novartis 84.29 83.84 0.45 0.54 3.91 4.9 4.72 Devon Energy 29.07 28.98 0.09 0.30 -1.78 -5.8 10.33
Russia 06/28 12.75 - Baa3 BBB 168.12 2.48 0.07 0.05 - Mexico 06/26 1.09 - Baa1 BBB- 98.73 1.34 -0.02 -0.14 0.27
GlaxoSmh 1417.00 1407.40 9.60 0.68 65.20 4.8 -98.97 Truist Financial Corp 56.45 56.69 -0.24 -0.42 -3.38 -5.6 -8.47
SaicMtr 21.10 19.91 1.19 5.98 0.97 4.8 3.58 GenMotors 60.33 60.79 -0.47 -0.76 -3.60 -5.6 7.74 Brazil 02/47 5.63 - Ba2 BB- 101.48 5.52 0.08 0.80 - £ Sterling
CNOOC 8.92 9.14 -0.22 -2.41 0.40 4.7 3.49 Deut Bank 11.59 11.57 0.02 0.21 -0.69 -5.6 -5.62 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -
Fanuc 27165.00 27045.00 120.00 0.44 1155.00 4.4 8.96 PngAnBnk 23.22 23.37 -0.15 -0.64 -1.32 -5.4 -0.43 Brazil 04/21 2.88 BB- Ba2 BB- 103.09 0.05 0.01 -0.09 -1.19 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
Keyence 56820.00 55720.00 1100.00 1.97 2320.00 4.3 10.07 MmcNrlskNckl 24890.00 26296.34 -1406.34 -5.35 -1412.02 -5.4 -8.75 Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 - Baa1 BBB- 106.48 -0.26 - - -0.36 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jun 15 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jun 15 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 15-03-2020 1.00-1.25 1.50-1.75 1.25-1.50 Index change change change 1 month 1 year VIX 17.15 0.76 16.39 44.44 15.04 Jun 15 Price £ Yield Day Week Month Year High Low £m
US Prime 4.75 30-10-2019 5.25 5.25 4.25 Markit IBoxx VXD 14.73 0.30 14.43 51.68 7.84 Tr 3.75pc '21 100.84 0.04 33.33 33.33 0.00 33.33 102.75 100.00 29.00
US Discount 2.65 30-09-2019 2.75 2.75 1.75 ABF Pan-Asia unhedged 223.45 -0.17 0.28 -1.73 1.07 6.01 VXN 20.89 0.83 20.06 47.63 19.08 Tr 4pc '22 102.88 0.03 200.00 200.00 50.00 -200.00 106.98 102.88 38.77
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 397.44 -0.09 0.61 -2.78 1.29 3.17 VDAX 18.31 0.44 17.86 93.30 - Tr 0.125pc '23 100.08 0.08 33.33 33.33 -20.00 300.00 100.60 100.00 33.82
UK Repo 0.10 19-03-2020 0.25 0.75 0.25 Corporates($) 336.61 0.00 0.99 -1.44 0.99 -1.44 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 0.125pc '24 99.91 0.16 14.29 6.67 -23.81 -900.00 104.35 99.72 34.12
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 243.25 -0.02 0.54 -0.38 0.73 3.68 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 5pc '25 117.78 0.21 16.67 10.53 -19.23 2000.00 123.75 117.78 35.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 255.97 -0.16 0.62 -2.86 1.45 0.86 Tr 0.125pc '26 99.06 0.33 6.45 0.00 -19.51 560.00 101.14 98.61 33.89
Gilts( £) 356.33 -0.28 0.41 -6.04 1.61 -7.00 BONDS: BENCHMARK GOVERNMENT Tr 1.25pc '27 104.70 0.47 6.82 0.00 -17.54 840.00 109.23 104.13 39.34
INTEREST RATES: MARKET Global Inflation-Lkd 318.56 -0.11 0.50 1.29 2.11 9.77 Red Bid Bid Day chg Wk chg Month Year Tr 0.875pc '29 101.37 0.71 4.41 0.00 -13.41 373.33 107.70 100.42 41.87
Over Change One Three Six One Markit iBoxx £ Non-Gilts 384.27 -0.10 0.52 -2.70 1.20 1.94 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 135.12 0.89 3.49 -1.11 -13.59 187.10 147.41 133.57 38.71
Jun 15 (Libor: Jun 14) night Day Week Month month month month year Overall ($) 278.49 -0.03 0.77 -2.17 0.77 -2.17 Australia 11/22 2.25 103.18 0.02 0.01 -0.02 -0.05 -0.24 Tr 4.25pc '36 143.23 1.07 1.90 -1.83 -13.01 132.61 158.28 140.76 30.41
US$ Libor 0.05538 0.000 0.000 0.002 0.07463 0.11800 0.15038 0.23750 Overall( £) 360.07 -0.23 0.44 -5.13 1.50 -4.59 05/32 1.25 97.14 1.54 0.00 -0.15 -0.30 0.52 Tr 4.5pc '42 161.59 1.23 0.82 -2.38 -11.51 108.47 183.17 157.72 27.21
Euro Libor -0.58371 0.001 0.000 0.001 -0.57586 -0.55000 -0.53071 -0.49143 Overall(€) 248.38 -0.12 0.54 -2.20 1.10 1.15 Austria 05/34 2.40 128.61 0.16 0.02 -0.05 -0.14 0.11 Tr 3.75pc '52 163.99 1.26 0.80 -2.33 -11.27 125.00 194.87 158.62 24.10
£ Libor 0.04138 0.000 0.000 0.002 0.05413 0.08425 0.10800 0.16875 Treasuries ($) 255.00 -0.07 0.66 -2.80 0.66 -2.80 02/47 1.50 122.07 0.57 0.02 -0.04 -0.13 0.21 Tr 4pc '60 186.22 1.20 0.00 -2.44 -11.11 140.00 227.33 179.62 24.12
Swiss Fr Libor -0.002 -0.80300 -0.75320 -0.70820 -0.59200 FTSE Belgium 10/23 0.20 102.01 -0.64 0.00 0.00 -0.04 -0.10 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.000 -0.07833 -0.09600 -0.06383 0.04817 Sterling Corporate (£) - - - - - - Canada 11/22 2.00 102.63 0.14 0.01 0.00 -0.01 -0.23
Euro Euribor
Sterling CDs
0.001
0.000
-0.55000
0.50000
-0.54600
0.63000
-0.52200
0.78500
-0.48800 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 06/30 1.25 99.32 1.33 0.02 -0.08 -0.16 0.79 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 690.64 -10.93 - - 9.53 14.30 Denmark 11/22 0.25 101.09 -0.52 0.01 0.00 0.00 0.02
US$ CDs -0.030 0.12000 0.17000 0.20000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 11/30 0.10 114.84 -1.37 0.01 -0.04 -0.01 -0.35 Price Indices Day's Total Return Return
Euro CDs 0.010 -0.53000 -0.49000 -0.52000 Fixed Coupon Jun 15 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series Finland 04/23 1.50 103.99 -0.66 0.00 -0.02 -0.02 -0.11
04/31 0.75 107.86 -0.05 0.02 -0.05 -0.16 0.07 1 Up to 5 Years 87.99 -0.05 2475.14 0.07 -0.48 0.18
Short 7 Days One Three Six One Index change change change high low 2 5 - 10 Years 179.47 -0.17 3704.95 0.65 -3.04 0.62
Jun 15 term notice month month month year Markit iTraxx France 05/23 1.75 104.67 -0.64 0.01 0.00 -0.04 -0.07
3 10 - 15 Years 211.64 -0.22 4667.81 1.36 -5.33 1.00
Euro -0.74 -0.44 -0.70 -0.40 -0.68 -0.38 -0.64 -0.34 -0.67 -0.37 -0.66 -0.36 Crossover 5Y 235.66 3.82 -7.25 -16.00 273.86 229.25 05/27 1.00 108.09 -0.35 0.02 -0.04 -0.13 -0.05
4 5 - 15 Years 186.56 -0.19 3941.26 0.90 -3.73 0.79
Sterling 0.45 0.55 0.58 0.68 0.71 0.86 0.90 1.05 Europe 5Y 47.66 0.51 -1.24 -2.77 55.28 46.62 Germany - - - - - - -
5 Over 15 Years 358.37 -0.13 5955.07 2.60 -12.34 1.22
US Dollar 0.09 0.29 0.00 0.20 0.02 0.22 0.07 0.27 0.10 0.30 0.17 0.37 Japan 5Y 44.68 -0.14 -1.76 -3.10 49.50 44.56 08/23 2.00 105.93 -0.71 0.01 -0.01 -0.03 -0.02
7 All stocks 181.13 -0.13 3923.13 1.37 -6.90 1.08
Japanese Yen -0.10 0.00 -0.10 0.00 -0.10 0.10 -0.10 0.10 -0.15 0.15 -0.15 0.15 Senior Financials 5Y 55.15 0.19 -2.09 -4.05 64.29 54.47 02/27 0.25 104.75 -0.57 0.02 -0.04 -0.11 0.04
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 08/50 0.00 91.50 0.30 0.01 -0.05 -0.14 0.27 Day's Month Year's Total Return Return
Markit CDX Greece 02/27 4.30 121.88 0.40 0.01 -0.13 -0.36 -1.10
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jun 15 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 150.52 1.77 -6.66 -11.82 191.34 148.48
Ireland - - - - - - - 1 Up to 5 Years 306.25 -0.02 1.17 0.69 2545.87 1.17 2.01
Nth Amer High Yld 5Y 276.71 1.37 -6.49 -16.89 316.77 275.34
- - - - - - - 2 Over 5 years 832.46 -0.18 5.25 -1.80 6305.94 5.25 -1.44
Nth Amer Inv Grade 5Y 48.63 0.37 -1.67 -2.91 58.09 48.26
10/22 0.00 100.78 -0.58 0.01 -0.01 -0.03 -0.13 3 5-15 years 508.93 -0.07 1.83 -1.45 4069.39 1.83 -0.70
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.
Italy 08/22 0.90 101.53 -0.45 0.00 -0.03 -0.10 -0.67 4 Over 15 years 1102.44 -0.22 6.48 -2.03 8125.22 6.48 -1.82
11/25 2.50 111.21 -0.04 0.02 -0.07 -0.25 -0.95 5 All stocks 739.72 -0.17 4.79 -1.67 5709.18 4.79 -1.23
05/31 6.00 150.35 0.71 0.03 -0.13 -0.30 -0.86
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 03/48 3.45 137.53 1.70 0.02 -0.12 -0.30 -0.68 Yield Indices Jun 15 Jun 14 Yr ago Jun 15 Jun 14 Yr ago
Japan 04/23 0.05 99.95 0.07 0.01 -0.01 0.00 0.01 5 Yrs 0.36 0.33 -0.07 20 Yrs 1.27 1.26 0.62
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/27 0.10 101.19 -0.10 0.01 -0.02 -0.03 0.01 10 Yrs 0.85 0.83 0.23 45 Yrs 1.16 1.16 0.47
Crude Oil† Jun 71.81 0.70 Corn♦ Jul 652.25 -6.50 Jun 14 Jun 14 Prev return stock Market stocks
06/34 1.50 117.12 0.17 0.01 -0.04 -0.04 -0.03 15 Yrs 1.14 1.13 0.51
Brent Crude Oil‡ 73.72 0.61 Wheat♦ Jul 656.50 -17.00 Can 4.25%' 26 130.45 -1.142 -1.142 0.02 5.00 77058.53 7
12/49 0.40 93.93 0.63 0.00 -0.03 0.00 0.11
RBOB Gasoline† Jun 2.19 0.01 Soybeans♦ Jul 1481.25 9.50 Fr 1.10%' 22 104.11 -2.502 -2.502 0.13 19.85 267983.19 17
Netherlands 07/23 1.75 105.17 -0.71 0.01 -0.02 -0.05 -0.10 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Jul 373.30 -0.60 Swe 0.25%' 22 110.09 -0.586 -0.586 -0.14 22.50 216989.09 7
07/26 0.50 105.36 -0.54 0.02 -0.03 -0.13 -0.05 Real yield Jun 15 Dur yrs Previous Yr ago Jun 15 Dur yrs Previous Yr ago
Natural Gas† Jun 3.33 -0.02 Cocoa (ICE Liffe)X Jul 1612.00 -8.00 UK 1.875%' 22 109.01 -4.154 -4.154 0.57 15.74 818644.82 31
Ethanol♦ - - Cocoa (ICE US)♥ Jul 2379.00 -3.00 New Zealand 04/27 4.50 119.43 1.06 0.01 -0.16 -0.20 0.48 Up to 5 yrs -2.98 2.86 -2.98 -2.37 -3.26 2.86 -3.27 -2.66
UK 2.50%' 24 358.91 -3.061 -3.061 0.37 6.82 818644.82 31
Uranium† - - Coffee(Robusta)X Jul 1566.00 -1.00 05/31 1.50 98.52 1.66 0.01 -0.19 -0.24 0.85 Over 5 yrs -2.23 23.86 -2.24 -2.32 -2.24 23.90 -2.25 -2.33
UK 2.00%' 35 293.66 -2.429 -2.429 0.51 9.08 818644.82 31
Carbon Emissions‡ - - Coffee (Arabica)♥ Jul 152.95 -1.80 05/31 1.50 98.52 1.66 0.01 -0.19 -0.24 0.85 5-15 yrs -2.55 9.43 -2.56 -2.67 -2.63 9.43 -2.64 -2.74
US 0.625%' 23 106.00 -2.553 -2.553 0.00 47.03 1679287.95 44
White SugarX 440.80 -7.60 Norway 08/30 1.38 99.71 1.41 0.01 -0.10 -0.06 0.82 Over 15 yrs -2.19 28.58 -2.20 -2.27 -2.20 28.58 -2.21 -2.28
Diesel† - - US 3.625%' 28 135.30 -1.298 -1.298 -0.04 16.78 1679287.95 44
Sugar 11♥ 17.13 -0.14 08/30 1.38 99.71 1.41 0.01 -0.10 -0.06 0.82 All stocks -2.24 21.65 -2.25 -2.32 -2.26 21.71 -2.26 -2.33
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 2454.00 -34.50 Cotton♥ Jul 85.22 0.41 Portugal 10/22 2.20 103.85 -0.66 0.01 -0.03 -0.05 -0.29 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1900.00 -309.50 Orange Juice♥ Jul 117.90 0.50 04/27 4.13 125.65 -0.24 0.02 -0.08 -0.19 -0.45 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 9551.50 -405.50 Palm Oil♣ - - Spain 10/22 0.45 101.41 -0.57 0.00 0.00 -0.04 -0.27 Gilt Closing Prices information contained herein is proprietary to
Lead 2179.00 -26.00 Live Cattle♣ Jun 119.43 0.63 BONDS: TEN YEAR GOVT SPREADS 11/30 1.00 121.35 -1.13 0.03 -0.07 -0.14 -1.00 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 17560.00 -910.00 Feeder Cattle♣ May 134.88 - Sweden 11/23 1.50 104.37 -0.30 0.00 -0.03 -0.04 -0.04 accurate, complete or timely; and does not constitute investment advice.
Tin 31300.00 -425.00 Lean Hogs♣ Jul 118.20 -1.73 Spread Spread Spread Spread 06/26 0.13 118.23 -1.63 0.00 0.03 0.11 -0.34 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 3015.00 -41.00 Bid vs vs Bid vs vs 06/30 0.13 117.00 -1.51 -0.01 -0.01 0.03 -0.19
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland - - - - - - - All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1865.60 -15.45 Jun 14 Month Year 02/23 4.00 107.97 -0.77 0.02 -0.03 -0.02 -0.11 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.54 - - Netherlands -0.54 - -
Silver (US cents) 2773.00 -41.00 S&P GSCI Spt 527.53 2.47 66.37 United Kingdom - - - - - - - Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria 0.16 - - New Zealand 1.66 - -
Platinum 1154.00 1.00 DJ UBS Spot 93.34 1.57 46.79 Canada 1.33 - - Norway 1.41 - - 07/23 0.75 101.45 0.06 0.01 -0.02 -0.03 0.08 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 2752.00 -35.00 TR/CC CRB TR 222.89 3.18 55.74 Denmark -1.37 - - Portugal -0.24 - - 07/26 1.50 105.86 0.34 0.01 -0.05 -0.09 0.35 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities LEBA EUA Carbon 51.30 -2.73 79.31 Finland -0.05 - - Spain -1.13 - - 07/47 1.50 105.02 1.27 0.03 -0.07 -0.14 0.67
Iron Ore 222.35 0.05 LEBA UK Power 1293.00 -64.73 3.44 Germany - - - Sweden -1.51 - - United States 03/23 0.50 100.62 0.14 0.00 -0.01 -0.01 -0.07 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 119.00 0.00 Ireland - - - Switzerland - - - 03/27 0.63 98.11 0.96 0.04 -0.03 -0.09 0.44
Baltic Dry Index 3025.00 81.00 Italy 0.71 - - United Kingdom - - - 04/32 3.38 147.67 - - - - -
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Japan 0.17 - - United States - - - 02/50 0.25 111.53 - - - - -
unless otherwise stated. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
12
An artist trapped
in her own skin
The roiling depths of Louise Bourgeois’s psyche are explored
alongside her art in a New York show, writes Ariella Budick
M
aybe it’s spring, or a surge
of pandemic-suppressed
eros — whatever the stim-
ulus, New York’s muse-
ums are erupting with
genitalia and erogenous zones. Niki de
Saint Phalle’s fleshy Nanas and Yayoi
Kusama’s hot flora have nicely set up
Louise Bourgeois’s outsized harbingers
of fertility. At the Jewish Museum,
an erect penis dangles from a hook in
the ceiling. Its pair of pendulum-
like spheres morphs into breasts, merg-
ing masculine and feminine forms.
Down at ground level, a marble bulge
begins to stir from its wooden plinth,
looking both hard and soft, phallic
and mammary.
These and other concupiscent works
appear elegantly arrayed and tastefully
lit, so that they swell into the space and
visitors can admire them from multiple
angles and distances. And yet Freud’s
Daughter, a psycho-literary-artistic
exploration curated by Bourgeois’s
former archivist Philip Larratt-Smith, is
less about her sculpture than her explo-
rations of the mind. The vitrines are
crammed with handwritten fragments
and stream-of-consciousness texts, pre-
sented as an oeuvre that is equal to her
creations in metal and stone.
“In literary quality and historical
importance, the psychoanalytic writ-
ings bear comparison with the autobiog-
raphy of Benvenuto Cellini, the journals
of Eugène Delacroix, and the letters of
Vincent van Gogh,” Larratt-Smith
writes; “along with her diaries, they
establish Bourgeois’s status as an artist-
writer of the first rank.” That’s a big
claim and not the only one the show has
trouble supporting. The other is that all
those pages offer a key to her sculpture’s
true meanings.
Bourgeois spent decades in therapy.
Having trained as a mathematician at
the Sorbonne, she always retained a
craving for structure. When she
switched fields, her new calling helped
her resolve the contradiction between
order and instinct, rationality and feel-
ing. Later, psychoanalysis supplied the
concept of sublimation, which for Bour-
geois meant moulding shapeless wrath
into meaning and harmony. Rancour
and revenge would give way to forgive-
ness. That was the theory, anyway.
In practice, forgiveness was a long
shot, especially when it came to her own
shortcomings and mental afflictions.
“I’ve schlepped Louise Bourgeois
around with me for more than 40
years,” she wrote in the early 1950s.
“Every day brought its wound, and I
carried my wounds ceaselessly, without
remission, like a hide perforated
beyond hope of repair. I am a collection
of wooden pearls never threaded — and
perfectly idiotic.”
Her father died in 1951, a loss that pro-
pelled her on to the couch of Dr Henry
Lowenfeld, a Freud disciple who had
emigrated from Berlin to New York in
1938 (the same year Bourgeois arrived
from Paris). She saw him, on and off, for
30 years, until he died.
They mostly worked on her rage — at
her father over his infidelities and
her mother for tolerating them, at her
husband and children, women she
saw as rivals, domestic obligations that
prevented her from focusing on work,
and the lethargy that descended when
★ FINANCIAL TIMES
ARTS
Top: ‘Hysterical’ (2001)
by Louise Bourgeois.
Above: the artist in 1995.
Above left: handwritten
note, c.1961 — Christopher Burke/©
The Easton Foundation
she was finally free to spend hours in
her studio. So many forms of fury left
their mark on paper, on marble, and on
the people in her life. “When I do not
‘attack’ I do not feel myself alive,”
she scrawled across a sheet of loose-
leaf paper.
The curator’s task is to organise those
scalding emotions into a cool exhibition,
to display them so that viewers can skim
the roiling depths of Bourgeois’s psyche
and come away having peered with a lit-
tle more clarity into her art. He does this
first by printing and framing her utter-
ances, like the sayings of some deranged
prophet: “A germ of rage cohabits like
the germ of TB, it lives in you: small
sometimes large other times, provoking
infection aggression elation courage
energy — your rage is your P you force it
on people you control it you used to con-
trol it it became so much stronger that it
is now like a wolfhound like a infected
sleeping bitch, it can wake up — is rage
feminine or masculine think about it —
Games come alive to the sound of music
GAMING
Tom
Faber
O
ur dance mats were cheap
things — squares of slick,
colourful plastic we laid on
the floor of the living room
— but my brother and I
loved them. In our early teens we honed
our ability to stomp on the mat’s four
arrows in sync to music by The Cure and
Kylie Minogue, among others. The game
we played, Dancing Stage MegaMix, was
my first introduction to the idea that
music in games might serve as more
than mere set dressing.
Music is a fundamental part of every
game, but one particular genre goes fur-
ther, making its soundtrack an essential
part of the action. In music games, a
player’s movements are bound to the
score: you might reshape the songs with
your actions, or be challenged to react to
every riff, beat and snare.
Rhythm games are reflex-based puz-
zles where players tap, step or move in
time with a beat. They are scored
according to precision, often guided by
visual cues which create a synaesthetic
experience of play. The first big success
in the genre was the eccentric PaRappa
the Rapper, in which you played a rap-
ping cartoon dog, and which paved the
way for Rez, a sci-fi shooter where each
manoeuvre changed the soundtrack,
and Vib Ribbon, a platformer that gener-
ated levels based on any music CD
inserted into the PlayStation.
As these innovative titles carved out a
niche on home consoles around the turn
of the millennium, the music genre was
exploding in arcades. Dance Dance Revo-
lution was the first megahit but other
popular titles included Samba de Amigo,
with its motion-sensing controllers in
the shape of maracas, and Donkey
Konga, which offered players a pair of
plastic drums. These titles demand that
you feel the rhythm in your body and
respond unconsciously. Their magic is
to gamify the pleasure of dance.
One company exemplifies the shifting
fortunes of music games in the west.
Harmonix co-created the popular Gui-
tar Hero franchise in 2005, which
offered players a guitar controller to
In everything like any live agent it func-
tions independently from any other
organism. it has a constant connection
to me, good or bad; I could use an easier
but flatter term — my aggression —
I don’t like this name although I don’t
know why — ”
Larratt-Smith also channels Bour-
geois’s cataracts of prose into tidy
explanations of her sculpture. In this,
he has help from the subject herself.
After decades of discretion, she finally
began to talk about her creative impulse
at 70, prompted by MoMA’s 1982
retrospective and the unaccustomed
celebrity it brought. Pain was a power-
ful motivator, she explained. Art served
as therapy, as a way to exorcise family
dysfunction, abuse, and violent
impulses. She offered critics predi-
gested interpretations, which seemed
reductive rather than revelatory.
The show picks up where she left off.
Her sometimes fascinating ramblings
are offered up as the equivalent of 3D
simulate playing along to rock songs by
bands such as Franz Ferdinand and
Black Sabbath. When Guitar Hero was
sold to Activision, Harmonix created a
rival title, Rock Band, which expanded
its instrument peripherals to include
keyboards, microphones and drums.
These games, along with singing titles
such as SingStar and Karaoke Revolution,
were successful because they were
inherently social, perfectly calibrated
for playing at parties and easy to pick up
for non-gamers who found traditional
controllers intimidatingly complicated.
During the late 2000s Guitar Hero and
Rock Band became $1bn successes, driv-
ing console sales and inspiring many
young people to pick up real instru-
ments. In 2009, however, revenue from
rhythm games crashed due to market
saturation and lack of innovation. A few
recent titles, such as VR rhythm game
Beat Saber and DJ simulator Fuser, have
achieved moderate success, but it seems
the days of blockbuster music games are
now behind us.
The 2009 launch of PlayStation’s
‘SingStar Motown’ karaoke game
Wednesday 16 June 2021
Above: installation view of ‘Freud’s
Daughter’. Left: ‘Passage Dangereux’
(detail) (1997) — Ron Amstutz
glasses, the key to making the picture
cohere. Take the 1997 installation “Pas-
sage Dangereux”, a cramped, even
frightening set of cages crammed with
the bric-a-brac of a complicated life.
The curator provides a handy guide to
its symbols: the pile of shirt cuffs is good
old Dad, the little flask of Shalimar per-
fume “represents sexuality and the
desire to seduce; the dead fly in the
horse-shaped bottle, which got stuck
and then died in the liqueur that
attracted it, concretizes the equation of
sex and death.” You could practically
type each clue on a Post-it and stick it on
the relevant object.
But Bourgeois’s self-analysis and the
show’s Freudian deconstructions wind
up thinning out a rich clangour of asso-
ciations and suggestions that will reso-
nate with each viewer on a different fre-
quency. Bourgeois’s power is that she
confronted the world with incompatible
demands: for sympathy and distance,
hostility, fear and approval. With simi-
larly contradictory impulses, Larratt-
Smith wants the shards of writing to
stand on their own as a feat of modern
literature and at the same time to serve
as glosses on the stuff that everyone’s
really come to see.
Those tensions are authentic to Bour-
geois. She never really wanted psycho-
analysis to heal her, or to alleviate the
discomfort she felt in her own skin.
“Freud did nothing for . . . the artist’s
torment,” she wrote in a 1990 essay.
“To be an artist involves some suffering.
That’s why artists repeat themselves —
because they have no access to a
cure.” Misery was her muse.
To September 12, thejewishmuseum.org
The creators of
‘Guitar Hero’,
from left, Greg
LoPiccolo, Eran
Egozy and Alex
Rigopulos
Boston Globe via Getty
Games naturally encourage experi-
mentation and exploration, precisely
the qualities musicians seek when writ-
ing songs. While rhythm games use
music as a conduit for gameplay, there
are also free-form releases intended for
original composition. Music 2000 on the
PlayStation offered a toolkit that was
hugely influential for UK grime produc-
ers — a radio clip shows musician Benga
using it to create a professional beat.
Meanwhile 1992’s Mario Paint has found
a surprising new lease of life on
YouTube thanks to its music composi-
tion tool, resulting in curiosities such as
a rendition of Daft Punk’s “Get Lucky”,
with a solo made of cats meowing.
While the first medium that critics
typically compare to games is cinema,
there is also an argument that they are
closer in essence to music. Neither a
game nor a musical composition is com-
plete until it has a player, and a single
piece can be repeated many times with
different results. Both games and music
are spaces for play, and each relies on
rhythm, whether it’s the tempo of
Guitar Hero or the cadence of punches in
Street Fighter.
When I visited a Japanese arcade in
2019 and saw a new version of Dance
Dance Revolution, I knew I had to try it. In
place of a mat with arrows there was a
square bed of LED lights. The game
asked me not just to beat-stomp but also
to jump, slide and duck, more break-
dancing than square dancing. At first I
felt self-conscious next to the seasoned
Japanese players twirling around me
achieving perfect scores. But as I sank
into the groove of an amphetamine-
paced club track, my mind switched off
— my body had trained for this through
years of childhood. It knew what to do.
Wednesday 16 June 2021
As Joe Biden prepares to meet Vladimir Putin for the first time as president, Washington believes Moscow
has stepped up its campaign to sow distrust in US democracy, including through vaccine disinformation.
T
he homepage of Global
Research, a Canadian web-
site that bills itself as an
independent research and
media organisation, is uni-
versally bleak about the prospects of
western-made Covid-19 vaccines.
“Covid-19 Vaccines lead to new Infec-
tions and Mortality: The evidence is
overwhelming,” runs one headline from
May. “Alarming casualty rates for
mRNA vaccines warrant urgent action,”
says another.
According to the US state depart-
ment, the Montreal-based non-profit is
anything but independent. Instead, it
said in a report published last year, the
organisation is “deeply enmeshed in
Russia’s broader disinformation and
propaganda ecosystem”.
Global Research was a partner of
another website, Strategic Culture
Foundation, that is directed by Russia’s
Foreign Intelligence Service (SVR), the
report said. The Canada-based group
has also published content from South-
Front, which the US Department of Jus-
tice designated in April — alongside SCF
and two others — as a “disinformation
outlet” of Russia’s intelligence services,
in this case the FSB.
As Joe Biden prepares to meet
Vladimir Putin at a summit in Geneva
today — their first meeting since the US
president took office — the efforts by
Russia-linked groups to sour opinion on
Covid-19 vaccines are part of what the
US sees as an intensified disinformation
campaign by Moscow.
In the past, the US has sought to use
summits with Russia to resolve disputes
over nuclear warhead numbers or to
criticise Moscow’s invasion of Ukraine.
In Geneva, the Biden administration
will be focused on what it sees as Russia’s
“harmful activities” in cybersphere.
For the US, the disinformation opera-
tions follow a series of cyber attacks
and hacking incidents that all appear to
have some level of Russian involve-
ment. US officials and experts believe
they amount to an accelerated policy of
sowing discontent and mistrust among
the American public, aimed at under-
mining institutions and faith in democ-
racy, at a time when fierce political
polarisation in the US is exposing those
same fissures.
“They are constantly exploring, look-
ing, poking, prodding — not just systems
but also the American public — looking
for ways to cast doubt, to divide us along
racial lines, along political lines, along
whatever societal divisions we already
have in existence,” says Matthew Mas-
terson, former senior cyber security
adviser at the Department of Homeland
Security now at Stanford Internet
Observatory. “That’s hybrid warfare in
the 21st century.”
US officials and monitoring groups
say Moscow’s efforts to disrupt and
undermine American democracy have
adapted fast to the new administration.
Misinformation about Covid-19 vac-
cines is just one part of that effort,
they say.
“Clearly there is a more direct cam-
paign against the Biden administration
than there was against Trump,” says
Bret Schafer, a propaganda expert at the
Alliance for Securing Democracy, part
of the German Marshall Fund think-
tank which was set up to track disinfor-
mation. Schafer has developed a tracker
that collects data from 350 Twitter
accounts, 27 websites and two YouTube
channels that are affiliated with the
Russian government or Russian state-
funded media outlets. “I couldn’t pick
out a single positive story in the past six
months,” he says.
Biden is seeking to use the Geneva
summit to help stabilise relations and
resolve what he said on Sunday were
“actions which we think are inconsist-
ent with international norms”. The US
president also said he agreed with a pro-
posal from Putin that could allow the US
and Russia to exchange cyber criminals
wanted by each other’s governments.
But few US experts on Russia believe
Moscow is likely to back off in any signif-
icant way in its cyber activities. “The
Russians have effectively already
declared war quite a long time ago in the
information sphere,” says Fiona Hill,
former senior Russia director on the
National Security Council during the
Trump administration.
“They’ve been trying to prove that
they are a major cyber force — they want
to create a wartime scenario so then
they can sit down and agree some kind
of truce with us.”
‘Malinformation’
The notion of disinformation wars,
though long in existence, came
into its own in the wake of the
2016 US election that brought
Trump to power. US investiga-
tors found co-ordinated
efforts by a Russian “troll
farm”, the Internet Research
Agency, to influence the polls.
Yevgeny Prigozhin, the
★ FINANCIAL TIMES
FT BIG READ. US-RUSSIA RELATIONS
By Katrina Manson, Henry Foy and Hannah Murphy
A new era of information warfare
Hybrid warfare: alleged caterer-turned-warlord known
when Joe Biden as “Putin’s chef” who US officials say
meets Vladimir funds the troll farm, has denied its exist-
Putin in Geneva ence and Moscow says it was not behind
today, the US such efforts. But the US indicted 13 IRA
president will employees for their involvement in the
point to Russian campaign and since then, Russia has
use of remained one of the most active nations
disinformation, conducting clandestine influence oper-
including ations, according to Facebook.
around the
safety of
US officials and researchers believe
some of the recent forays into the infor-
vaccines, right mation space have been more subtle,
FT montage, J Scott
Applewhite/AP
relying on real sources rather than
inventing negative stories. One example
has been the number of stories in recent
weeks flagging concerns over Biden’s
health. In this case, the prompt was a
May letter signed by 124 retired US gen-
erals who questioned the outcome of the
2020 presidential election and “the
mental and physical condition of the
commander-in-chief”, which was also
widely covered in the US media.
For experts, this is part of an effort
from Russia to shift away from fake bots
and personas amid a crackdown by
social media platforms on inauthentic
activity. Instead, they say, Russian out-
put is citing facts found in western
‘[Russia has] sources and amplifying existing voices.
“When it comes to US domestic narra-
been trying tives, they’re almost always piggyback-
to prove that ing on something that exists,” says
Schafer. “From the official sources we
they are a very rarely see something that you
major cyber would categorise as being invented”.
Instead, Russia is now focused on
force — they “wildly misleading” context rather than
want to making up facts: Schafer says he prefers
create a the term “malinformation” to outright
disinformation in such cases.
wartime The aim, say experts, is to prey on US
scenario so domestic division, such as that over race
relations and claims of election fraud, or
they can sit to stoke culture wars on both the right
down and and the left. Covid-19 has proved a
particularly fertile area.
agree some “It is very clear that Russia is up to its
kind of truce old tricks,” said Ned Price, a state
department spokesman, in March. “And
with us’ in doing so is potentially putting people
Fiona Hill, at risk by spreading disinformation
former director about vaccines that we know to be sav-
on the National ing lives every day.” He added that the
Security Council state department’s Global Engagement
Center, which has previously analysed
Russia’s “propaganda ecosystem”, had
identified four Russian online platforms
that were directed by Moscow’s intelli-
gence services and which spread disin-
formation about vaccines.
“We have seen Russia certainly ampli-
fying superspreaders of counter-vac-
cine disinformation or just Covid con-
spiracy theories,” says Nina Jankowicz,
an expert in Russian disinformation
at the Wilson Centre. “Russia doesn’t
create this stuff . . . but they latch
on to pre-existing narratives, soci-
etal distrust, and amplify that.”
Sometimes Russia targets
“prominent US individuals” to
push influence narratives to
the domestic US audience, according to
a March report from the US intelligence
community. It said Putin had author-
ised such information operations for the
2020 polls rather than repeating per-
sistent efforts to hack election infra-
structure in 2016.
US lawmakers are among those
accused of spreading Russian propa-
ganda. Last month, Republican senator
Ted Cruz was criticised after he shared
on social media a video montage that
unfavourably compared a US military
recruitment advert to a Russian one.
“Whenever there’s something useful
out there in the information ecosystem
that makes it look like there’s mud on
America’s face, then they’ll use that,”
says Graham Brookie, a former Obama
administration official who is now
director of the Atlantic Council’s Digital
Forensic Research Lab, which tracks
open-source foreign disinformation.
“It’s a clever engagement strategy, and it
shows how divided we are.”
Sophisticated hacks
Researchers at social media intelligence
group Graphika last week revealed that
the people behind a fake rightwing out-
let which had been taken down in Octo-
ber by social media platforms including
Facebook, Twitter and YouTube have
begun targeting more niche rightwing
social media platforms such as Gab,
Parler and patriots.win, which are only
lightly moderated.
Graphika said the campaign, which
was “still active”, focused on spreading
narratives of voter fraud, as well as
“highly offensive” cartoons accusing
Biden of “senility, sexual harassment
and paedophilia”.
Camille François, chief innovation
officer at Graphika, says these alterna-
tive platforms were enabling Russian
operatives because a “lack of policies
. . . means that campaigns are not being
taken down, and can be more successful
in their hyper-targeting of specific far-
right communities”.
Russia’s cyber efforts go far beyond
influence campaigns, however. Officials
say direct cyber attacks are now suc-
cessfully targeting the US government
on a grand scale and that indirect
attacks risk critical infrastructure.
In April, the Biden administration
blamed Moscow for a months-long hack
that affected nine federal agencies and
more than 100 private companies. The
operatives — widely believed by the US
government to be part of Russia’s SVR —
hacked software from the US company
SolarWinds in order to breach govern-
ment and company email systems.
The breach was first detected in
December, but Moscow appears to have
continued its campaign. In May, Micro-
soft said it had evidence the same group
hijacked an email system to pose as the
USAID development agency and carry
out a phishing campaign targeting more
than 150 government agencies, human
rights groups and non-governmental
organisations.
Ransomware attacks attributed by
the US to Russian cyber criminals also
forced the closure of a commercial pipe-
line and meatpacking company in May.
The US has not directly blamed the
Kremlin, but the Treasury earlier this
year accused Russia’s FSB, of “cultivat-
ing and co-opting” a ransomware group
known as Evil Corp. The White House
said it told Moscow “responsible states
do not harbour ransomware criminals”.
Andrei Soldatov, a Russian security
expert at the Center for European Policy
Analysis, says ransomware attacks by
Russian criminals were “extremely con-
venient” for the Kremlin as US investi-
gators are forced to ask Moscow for
assistance in tracing them.
“You are not only dealing with a
political issue but the added problem of
needing to request co-operation with
Russian security services,” he adds. “It’s
very smart.”
Andrea Kendall-Taylor, a former sen-
ior US intelligence official who Biden
appointed Russia director on the
National Security Council before she
turned it down for personal reasons,
says Putin could prevent such attacks if
he wanted. “It’s becoming more brazen
and [they are] going after bigger tar-
gets.” she says of Russia’s disruptive
cyber attacks.
The Biden administration is also
investigating a host of suspected
“directed” radio frequency attacks on
US officials known as Havana syndrome
after US officials stationed in Cuba first
reported it in 2016. Similar symptoms
have been reported in China and else-
where since 2018.
Although US secretary of state
Antony Blinken said last week that “we
still simply do not know” the cause of
the incidents, suspicion has fallen on
Moscow. Two people briefed by US
intelligence officials say Russia was the
most likely culprit if they were con-
firmed as attacks. One said there was a
possibility it was a prototype intelli-
gence-collection technique gone wrong
in which the Russians might be attempt-
ing to steal data from computers and
phones by “pulsing” radiofrequency
energy towards devices that ended up
13
‘They are affecting people in the immediate
vicinity.
constantly Hill says the Havana attacks, if proven
exploring, to be conducted by Moscow, would fall
into a pattern of Russian disregard for
looking, collateral damage in intelligence collec-
poking, tion. “The Russians take great pride in
their novel ways of getting at you . . . in
prodding, many respects it’s a continuation of the
looking for cold war,” says Hill, who suspects Rus-
ways to cast sians have previously exfiltrated data
from her phones, hacked her work lap-
doubt, to top at the time she was writing a 2015
divide us book about Putin and regularly tailed
her. “They don’t really care about the
along racial harm they could cause.”
lines, along She adds that when Russia’s previous
use of polonium, a radioactive poison,
political and novichok, a nerve agent, to target
lines’ opponents came to light, the revelations
were not wholly unwelcome in Moscow
Matthew because it signalled to Russian citizens
Masterson, the dangers of spying or dissent. “It’s
Stanford softening up the enemy, making them
Internet feel that they’re going to be defeated.”
Observatory
West plays ‘whack-a-mole’
Attempting to stop Russian information
operations and cyber hacks is an uphill
task. “It’s like whack-a-mole,” says
James Lewis, cyber security expert at
the Center for Strategic and Interna-
tional Studies. Russia has for years
sought to lay down some form of global
peace treaty for cyber space, but the US
has been wary of entering any form of
talks that presuppose both sides are
equal, or bear equal responsibility for
past cybercrimes.
The Biden administration has sig-
nalled that it is actively seeking to dis-
cuss cyber attacks to establish limits
and signal heavy responses if breached.
“It is a good thing that they have
stopped this silly policy of refusing to
talk with us about cyber issues,” a senior
Russian government official told the
Financial Times. “Now that is on the
[Geneva] agenda we can at least discuss
it, but we are far from co-operation.”
As one first step, the US wants to
expose Russia’s information operations
but without resorting to militarised lan-
guage about cyber “warfare”.
Biden’s approach indicates he wants
to solicit support from Nato, harden the
resilience of critical US infrastructure
and take steps to defend democracy at
home and abroad. His national security
adviser Jake Sullivan has promised to
respond in ways “seen and unseen”, sug-
gesting the US could take increasing
covert cyber actions of its own.
But even if the summit provides some
clarity, the direction of travel seems
clear. “This invisible war is becoming
more and more real, and is becoming
one of the principal tools in this hybrid
war, [this] confrontation between the
US and Russia,” says Dmitri Trenin,
director of the Carnegie Moscow Center.
“I see no real let-up in this confronta-
tion. I think it will intensify . . . I’m
afraid, before we find a new normal.”
14
WEDNESDAY 16 JUNE 2021
A US-Russia summit of
meagre expectations
Biden should expose the hollowness of Putin’s position
The auguries for President Joe Biden’s
Geneva summit with Vladimir Putin
are not propitious. At their first meet-
ing in 2011, Biden said he thought the
Russian president had “no soul”. More
recently, he agreed with an inter-
viewer’s suggestion that Putin was a
“killer”. In a Moscow address in April,
Putin warned darkly of unspecified red
lines and an “asymmetrical, rapid and
harsh” response from Moscow should
the west cross them. While expecta-
tions are necessarily rock-bottom,
however, it makes sense for the two
leaders to meet.
Biden has faced criticism even for
offering to sit down with Putin. Some
argue he is giving Russia’s leader what
he wants — a chance to appear an equal
to the US president, despite Russia’s
misbehaviour of recent years — with
nothing in return. China has long sup-
planted Russia, moreover, as the west’s
chief economic and geopolitical rival.
Yet Russia and the US still retain
nuclear arsenals that dwarf those of
any other country. Putin is determined
that the way to project power is as a dis-
rupter of the west — be it through cyber
attacks, information warfare, or assas-
sinating opponents. Russia’s annexa-
tion of Crimea and military meddling
in eastern Ukraine and the west’s strug-
gle to counter them have set unfortu-
nate precedents that Beijing will have
noted. The resulting suspension of
many official and back-channel com-
munications with Moscow creates a
dangerous vacuum.
Biden has wisely avoided talk of
resets, saying merely that he wants
more “stable and predictable” ties with
Russia. He should nonetheless make
clear to Putin that the door remains
open to a new framework for co-opera-
tion. This would entail Russia reaffirm-
ing, for example, a commitment to the
Helsinki accords that assured the invi-
olability of European borders, and the
Good UK trade policy
should start at home
Australia deal shows importance of domestic buy-in to agreements
The trade deal agreed in principle
between Britain and Australia will set
the baseline for the UK’s independent
trade policy. This will be the first agree-
ment — excluding the post-Brexit deal
with the EU — that does not replace a
treaty that the UK enjoyed as a mem-
ber of the bloc. The provisions will
therefore set a framework for other
trade talks, showing what the UK is
willing to give away to achieve its goals.
Just as important, however, is the
unfortunate precedent it sets in how
the country’s trade policy is managed.
The 2016 referendum on UK mem-
bership of the EU demonstrated not
only resentment about the economic
effects of globalisation but also its
struggles with political legitimacy.
Britons, said David Cameron when he
announced in 2013 he would seek an
in-out referendum, had “seen treaty
after treaty changing the balance
between member states and the EU.
And note they were never given a say.”
Yet this latest chapter in Britain’s trade
policy is again being written behind
closed doors.
There has been little parliamentary
scrutiny of the Australian trade agree-
ment or heed paid to interested parties.
The most controversial aspect is its
impact on farmers who fear they will
face competition on prices and stand-
ards from industrial-scale Australian
producers while simultaneously being
asked to absorb the costs of the green
transition. Many backbench Conser-
vative MPs, as well as those in the oppo-
sition parties, agree. Even members
of the cabinet are reported to be split,
with the department for international
trade on one side and the department
for environment, food and rural affairs
on the other.
It is the norm in the UK and, indeed,
many other countries for the executive
to be given a free hand in international
negotiations. Treaty-making in Britain
post-cold war principle that nations
can choose their governments, and alli-
ances, by democratic means. It would
mean serious engagement with and
implementation of the Minsk II agree-
ment and Russian withdrawal from
east Ukraine. In return, Moscow could
over time retake its place as an impor-
tant ally in a law-based global order.
A clear-eyed assessment of Russia’s
interests might conclude this was pref-
erable to being a junior and somewhat
disdained partner to Beijing. Putin is
unlikely to agree. He sees free choice
for countries such as Ukraine as lead-
ing, ineluctably, to their incorporation
into western alliances and — despite
clear signals from Berlin and Paris that
this is not their intention — to what he
sees as a hostile Nato expanding to Rus-
sia’s borders. Biden can then warn,
however, that the US and the demo-
cratic allies with whom he has taken
care to rebuild post-Trump bridges on
the way to Geneva will not hesitate to
hold Moscow to account for further
rule-breaking and provocations.
Exposing the hollowness of Putin’s
position — after some EU leaders such
as France’s Emmanuel Macron have
advocated and attempted greater
engagement — would give Biden lever-
age to bind European partners into a
more robust and united stance. By sig-
nalling recently that Washington is pre-
pared to use the US financial system
against wrongdoing by Moscow, Biden
has shown that the west has further
ammunition in its sanctions armoury.
However frosty the relationship, the
meeting offers a potential chance to
launch initiatives useful to both sides in
discrete areas such as curbing ran-
somware crime or beginning to renew
the arms control architecture that has
been partially dismantled in recent
years. In perilous times, jaw-jaw still
has some value. But it must be backed
with clarity and determination.
is a “prerogative power”, or one the
government wields on behalf of the
Queen; no parliamentary approval is
required. Treaties must be ratified but
cannot be amended. Even if parliament
rejects a treaty, this just restarts the
clock; the government can resubmit it
repeatedly for parliamentary assent.
Prime Minister Boris Johnson agreed
the broad outline of the deal with his
opposite number over Scottish salmon
and Welsh lamb but the devolved
administrations lack a significant say.
With no responsibility for its contents,
the Scottish National party will have an
interest in scaremongering over the
deal’s impact on Scottish farmers. The
Northern Irish protocol, agreed with
the EU as part of the withdrawal agree-
ment, will mean any trade agreements
do not fully apply to the province.
There is a balance to be struck. Nego-
tiations require a country to present a
united front and speak with one voice.
Yet parliamentary buy-in as well as
improved transparency and wider
political support are vital to see deals
over the line. The Swiss government
agreed a deal with the EU to upgrade its
relationship with the bloc but domestic
critics picked it apart. In the UK’s own
Brexit negotiations, a lack of domestic
consensus over what the future rela-
tionship should look like was the great-
est barrier to striking a deal.
Bottling up disagreements will not
make them disappear. A suggested
15-year transition period in which the
provisions gradually come into effect
may limit political difficulties but will
reduce even the limited benefits of the
deal — estimated to add 0.01 to 0.02 per
cent to UK national income.
The Australian deal is a prize for a
government that valued an independ-
ent trade policy so much it was willing
to put a border in the Irish Sea. It is also a
reminder that the most important nego-
tiations are those that happen at home.
★ FINANCIAL TIMES
Letters
Judicial system is a good model for auditing
In the article “Planned audit reforms
set to fail, warns ex-regulator” (Report,
June 15) Paul Boyle states that current
auditing reforms are likely to be
unsuccessful. He is very likely right but
for the wrong reason.
In calling for greater competition one
should ask: what are auditing firms
competing for? Very likely the answer
is that they are competing for clients,
not for the quality of the audits.
How do we repurpose this
competition and make sure it plays in
the interest of the public? The answer
is simple — by adopting the principles
that inspire the judiciary system. In
that system we have lawyers who serve
Activists have proved their
worth with Toshiba probe
I would like to challenge the views you
express in the Lex column which is
titled “Toshiba: foreign relations” (Lex,
June 12).
It is true that the investigators’
report into the irregularities at the
2020 Toshiba annual general meeting
has uncovered an ugly swamp of voter
suppression and intimidation carried
out by some of the highest levels of
Japanese officialdom. Most of it was
directed at shutting out the
participation of foreign shareholders.
In addition, the fact that it takes the
investigators 40-plus pages to describe
the process by which votes are
collected and tabulated in Japan is a
terrible condemnation of a system that
makes shareholder participation
difficult for all investors, domestic as
well as foreign. For most of us following
this issue, the final report was even
more damning than expected.
Nevertheless, we got to this place
because the system worked: activists
succeeded in calling an extraordinary
general meeting (not an easy thing to
do in Japan). Activist investor
Effissimo’s proposal to launch this
independent investigation received
majority support (also not an easy
win). Meanwhile, the former chief
executive was ejected primarily due to
the voices of foreign investors calling
out the failures of governance. One
could just as easily rate this a victory
for foreign shareholders.
I believe Effissimo is to be
commended for its persistence, which I
believe is setting a new bar for
shareholder rights in Japan.
Alicia Ogawa
Director, Project on Japanese Corporate
Governance and Stewardship at the
Center on Japanese Economy and
Business, Columbia Business School,
New York, NY, US
Britain needs Depop, but
it needs deep tech more
Tim Bradshaw is right to support the
Depop sale; it’s sales of deep tech
companies we must be wary of
(“Depop sale does not signal the
deflation of UK tech scene”, Opinion,
June 11).
It’s only reasonable to voice some
caution about investors jumping to
cash in on early exits to international
purchasers. I’ve sold that way a few
times myself and would much prefer to
have kept the businesses under UK
ownership and management,
contributing to the UK economy. But
we should distinguish between
The cicada
cycle marks
the political
changes in
Washington
Notebook
by Lauren Fedor
the interest of the client, prosecutors
who pursue the interest of the public,
and judges who exercise wise choice in
the interest of society.
In the current structural
arrangements in the auditing business
we only have lawyers who are paid by
the client, but who serves the public
interest?
Without calling for the
nationalisation of the audit industry, or
the useless separation between
consulting and auditing business, or
sterile calls for greater competition
without clarifying what this
competition should be about, one
could think of a public agency which
companies offering consumer-facing
applications and deep-tech innovators.
When we look at the UK tech
economy, it’s the deep tech companies
— like Arm, DeepMind and our
growing roster of artificial intelligence,
robotics and blockchain start-ups —
which have a potentially strategic
contribution to make, compared with
more consumer-facing platforms and
marketplaces such as Depop.
While this kind of service company
certainly brings innovative and
desirable offerings to the table (or the
wardrobe in this case), they are often
not really innovating in the technology
itself.
We still should focus on helping them
scale, but deep tech companies hold
much higher strategic potential for the
UK, and these are the ones we should
ask investors to consider holding on to
for longer. At the end of the day,
investors have their own obligations
and commitments.
It would not encourage investor
confidence if the UK began to meddle
too frequently in investment decisions
or if greater powers were sought to
prevent exits — except in a very small
number of cases.
Occasionally, however, an early exit
might genuinely represent a potential
loss to the development of strategic
assets for the UK economy. We could
use a better, more transparent process
for seeking to reduce those rare
occurrences. Meanwhile, we would do
well to focus on how to encourage the
scaling up of technology innovation
companies across the board to furnish
our economy with more midsized
businesses.
Jeremy Silver
Chief Executive, Digital Catapult
London NW1, UK
As Joe Biden prepared to board Air
Force One for his first foreign trip as
US president last week, he offered one
piece of advice.
“Watch out for the cicadas,” he told
reporters on the tarmac at Joint Base
Andrews, swatting his neck where a
large insect had landed. “I just got
one, it just got me.”
The journalists did not need
reminding. Hours earlier, a plane
chartered to carry the White House
press corps across the Atlantic had
been grounded by a swarm of the red-
eyed bugs clogging the aircraft’s
engines. The day before, the National
Weather Service reported the weather
radar around the nation’s capital had
been “fuzzier” than usual. The likely
culprit? Cicadas.
Washingtonians have for weeks
endured the once every-17-years
infestation of insects with equal parts
fascination and disgust. When local
news outlets first began warning
billions of cicadas would emerge
from the ground, I dismissed their
looming arrival as a minor
inconvenience, much like the
scorching temperatures and humidity
that make Washington feel especially
swampy this time of year.
A few weeks later, I can confirm
what many DC veterans had said all
along: cicadas are, in a word, gross.
Not everyone agrees. Colleagues
report their children are delighted by
them. Local news sites are full of
advice columns for dog owners whose
canines will not stop ingesting them. A
quick search for “cicada recipes”
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
collects fees from auditees and assigns
auditing jobs to the auditors.
This would finally eliminate the
biggest elephant in the auditing room,
namely the conflict of interest between
auditee and auditor.
Auditing firms will still compete, but
to secure auditing jobs in the public
rather than in a private interest. This is
common sense, but in the auditing
industry common sense does not seem
to be common.
Paolo Quattrone
Professor of Accounting, Governance and
Society, Alliance Manchester Business
School, University of Manchester, UK
Edinburgh, UK
Putin must be confronted
on Moscow’s cyber threat
Alex Younger highlights the difficulty
establishing whether ransoms should
be paid in the event of terrorist attacks
and the importance of political
authorities co-ordinating their
responses to counter such threats
(“Ransomware attacks have to be
stopped — here’s how”, Opinion, June
12).
It reminds me of the reports, at
about the time Terry Waite and other
western hostages languished in cells in
Beirut in the 1980s, of Russia’s
response when kidnappers took four of
its diplomats.
Russian agents then seized a relative
of one of the terrorists and sent him
back in pieces.
The three remaining diplomats (one
had already been killed) were
immediately returned and apparently
no Soviet was kidnapped in the region
again.
Younger states that “it will not have
escaped many people’s notice that
most ransomware operators have a ‘no
eating in Russia’ policy”. While I am
inclined to be a compromiser, actions
that include shutting down a pipeline
for 45 per cent of the eastern US fuel
supply require a strong response.
At today’s summit meeting in
Geneva between US president Joe
Biden and Vladimir Putin, the Russian
leader must not be allowed to continue
to turn a blind eye to such events.
It must be put to him by the
international community that this will
have strong repercussions in other
spheres.
Tony Parrack
London SW20, UK
The G7 appears clueless
about global competition
Gideon Rachman’s rather unconvincing
commentary (“The G7 is the west’s last
chance to lead”, Opinion, June 8) did
not mention that the G7 is worth barely
40 per cent of the world’s economy.
But it rather substantiates our past
president’s perspective that the G7 is
an outdated forum.
The heralded agreement that the US,
UK, France, Germany, Italy and
Canada will have on a “global
minimum tax rate” illustrates that the
G7 is clueless about global competition.
Clearly, the Chinese must be
laughing all the way to the bank, as
they continue to expand their
influence, trade and international land
acquisitions, with limited competition.
Chris Kniel
Orinda, CA, US
shows some humans apparently want
to eat them, too. But I am with the
president: cicadas are best avoided.
Besides being large, they are loud —
noise levels have been recorded at 90
decibels in some areas, akin to a
lawnmower — and messy, spraying
urine on those who happen to walk
underneath the trees where they are
perched.
Thankfully, in addition to being
technically harmless to humans and
animals, the cicadas are only
temporary. The Brood X cicadas
appear in North America in warm
weather once every 17 years, emerging
from the ground for a suicidal mating
frenzy. The males die after mating; the
females die after laying their eggs in
trees; the eggs hatch within weeks and
the new insects fall swiftly to the
ground, burrowing into the earth for a
decade and a half, before the whole
process starts again.
Scientists say the deluge should end
by July 4. And while I will not miss the
bugs, their looming departure has me
contemplating what Washington
might look like when they return.
Seventeen summers ago, George W
Bush was in the White House, seeking
re-election against Democratic
challenger John Kerry, while US troops
were in the early stages of the war in
Iraq. A relatively unknown state
senator from Illinois gave the keynote
address at Kerry’s nominating
convention. Less than a decade later
that senator, Barack Obama, was
president and he tapped Kerry to be
his secretary of state. A few years after
Wednesday 16 June 2021
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
Risk-averse pension funds
will hold back businesses
Martin Wolf convincingly argues that
the demand to de-risk small defined-
benefit pension schemes makes it
harder for them to hold high-return
assets (“Radical reform of pensions
provision is urgent”, Opinion, June 14).
This is not just bad news for the
schemes themselves, but also for the
future of the economy.
The businesses of the future rely
more on intangible assets, such as
research and development and
software, than on tangible ones, such as
buildings and machines. A growing
body of research shows that intangible-
rich businesses often rely on illiquid
forms of equity finance — something
that subscale, tightly regulated funds
can rarely provide.
A fragmented, risk-averse
pensions industry is not only bad for
pensioners; it will hold back the
businesses we rely on for economic
growth in the future.
Stian Westlake
Royal Statistical Society
London EC1, UK
Professor Jonathan Haskel
Imperial College Business School
London SW7, UK
Only a spell in rehab can
cure our screen addiction
As Pilita Clark states, for many the
pandemic has created an “always-on”
work culture (“We should pull the plug
on pointless after-hours emails”,
Opinion, June 14).
However, the underlying cause is not
all the pointless emails and social
media alerts. It is our addiction to all
such digital communication driven
generally by either “fear of missing
out” or the sender’s ego.
Those who genuinely want to
manage by themselves can already do
so by either muting or switching off
their device (from mobile phones to
PCs).
Many companies have tried
implementing charters to discourage
sending or dealing with emails outside
normal working hours — with mixed
results.
The classic example was Daimler-
Benz in 2014. In 2017, France gave
employees the right not to respond
outside normal working hours.
If either the sender or the recipient
suffers with such psychological issues
which cause addiction, all the
technological wizardry will not help.
Only rehabilitation techniques akin
to those used for substance abuse will
solve the problem.
So please, no more tools and apps
which only further encourage our
screen addiction.
Monica Seeley
Bournemouth, Dorset, UK
Correction
c The recent International Energy
Agency net zero report suggests
360m electric vehicles will be on the
road by 2050, reducing oil demand by
6m barrels a day, not by 600,000 b/d as
wrongly stated in an Opinion article in
some editions on June 15.
OPINION ON FT.COM
Did FT Alphaville unwittingly fuel the
GameStop madness?
For r/WallStreetBets, inspiration was found in
ageing pink pixels
www.ft.com/Alphaville
that in 2016, American voters rejected
Obama’s legacy and elected a property
developer turned reality TV star
president.
Predicting the future is a fool’s
game, and I will not wager who
controls the White House or Congress
after 2024, let alone during the next
cicada swarm in 2038. But until
recently, I would have said it was a
sure bet that at the very least future
US elections would be free and fair.
Now I am less confident.
It is easy to forget in a year marked
by a global pandemic, military-
enforced curfews and now an
infestation of locust-like insects, that
just six months ago, a mob of Donald
Trump supporters stormed the US
Capitol to interrupt the certification of
Biden’s Electoral College victory.
Hours later, several people were dead
— and 147 elected Republicans still
voted to overturn the results of
November’s election.
When Biden was sworn in
peacefully two weeks later, many in
Washington breathed a sigh of relief.
But in the months since, there has
been little sign of bipartisan reckoning
on Capitol Hill, with Republican
lawmakers recently rejecting
Democrat-led efforts to establish a
bipartisan commission to probe the
January 6 riots. That begs the
question: what happens the next time
the ballots are counted, let alone what
American democracy looks like when
the cicadas are back?
lauren.fedor@ft.com
Wednesday 16 June 2021
WORLD AFFAIRS
Janan
Ganesh
T
he cold war film Dr
Strangelove owes its shelf-
life to its portrait of US-UK,
not US-Soviet, relations.
The straight man of the
piece is a British officer who must talk
American hot-heads out of a nuclear
first-strike. There was more to this
account of the US as a feral giant than
the snark of an Anglophile director. Real
life bore it out when Britain abstained
from the Vietnam war. It continued to
chime as London tried to nag Washing-
ton into such ventures as the Kyoto pro-
tocol and the Iran nuclear pact.
Spurn the false
promise of
protectionism
Martin Wolf Economics
The US economy suffers from poor
labour performance but this is
not due to global trade
P
rotectionism is back, above
all, in the US. The driving
forces behind it are xenopho-
bia and nostalgia. Arguments
can be made for a degree of
self-sufficiency, for reasons of national
security. But those arguments need
meticulous assessment. This is not what
has been happening, certainly not
under Donald Trump. But though the
tone is different under Joe Biden, the
reality is not, alas. On the contrary, pro-
tection has become one of the few issues
on which there is bipartisan consensus.
The communiqué issued by the
leaders of the G7 stated that, “We have
agreed . . . to . . . secure our future
prosperity by championing freer, fairer
trade within a reformed trading sys-
tem”. This papers over cracks between
the US, increasingly doubtful about
trade and, say, Germany, dependent
upon trade for its prosperity, as is true of
all the smaller high-income countries.
(See charts.)
It is not surprising that a large country
with a sophisticated economy and
diverse resources, such as the US, tends
to trade less intensively than smaller
ones and so cares less about it. It gains
many of the benefits of trade through
internal specialisation. But, as Anne
Krueger argues in her book, Inter-
national Trade, trade has been the hand-
maid of economic growth, across the
world, since the second world war.
Moreover, even if trade is less vital for
the US than for other members of the
G7, this does not mean that the US is a
Andrew
Weiss
T
he main question hanging
over today’s meeting in
Geneva between Presidents
Joe Biden and Vladimir
Putin is what, if anything,
the two men are prepared to put on
the table to create, in Biden’s phrasing,
a more predictable and stable
relationship.
Biden’s team rightly points to the
extension of the New Start arms control
treaty after his inauguration as proof
that limited engagement can sometimes
pay off for both countries. A joint effort
to revive the Iran nuclear deal, which
benefits from Russia’s technical co-
operation in partnership with other
Britain can expect few favours from Biden
How weird to be living through a
reversal of these roles. For perhaps the
first time since the Suez crisis, the US is
the more committed of the two nations
to the norms and institutions of the
global commons. As Britain tampers
with the Northern Ireland protocol,
an Irish-American president looks on
with scarcely concealed dismay. While
Joe Biden aims to increase US foreign
aid, Britain, according to one of its own
government’s MPs, is the only G7 state
to make a cut.
And this comes after an odd few years
for Britain’s moral standing in Washing-
ton. There was no shame in the initial
cultivation of President Donald Trump.
Emmanuel Macron made no less a fuss
of him during his first summer in charge
of France.
What distinguished (if that is the
word) Britain was the decision to keep
it up after it became plain that Trump
was bent on a spoiling role in the world.
hapless victim of the wicked practices
of the rest of the world and especially of
China. On the contrary, the resort to
protection is like looking for keys under
a street light, not because that is where
they were lost, but because that is where
it is brightest.
The US problem is that protection — a
tax on the domestic economy, mainly
consumers, for the benefit of producers
— is a politically acceptable but ineffec-
tive substitute for a well-designed social
safety net. Europeans have much to
learn from the US, especially on innova-
tion. But on how to combine open trade
with personal economic security and so
adjust to trade, they are far ahead.
In a splendid recent polemic, the
economist Adam Posen takes the pro-
tectionist arguments head on. In partic-
ular, he notes, far from being exception-
ally open to trade, the US is relatively
closed. Far from having suffered an
exceptional degree of opening over the
past two decades, it has been retreating
from openness. Far from having been
exceptionally buffeted by imports from
China, for each loss to Chinese competi-
tion, roughly 150 jobs were lost to “simi-
lar-feeling shocks in other industries”.
And far from being a unique victim of
declining employment in manufactur-
ing, the very same thing has been hap-
pening to all high-income countries.
No doubt, the US economy has suf-
fered from high and rising inequality
and a poor labour force performance,
with the employment of prime-age
adults increasingly lagging behind that
A summit with Putin is a chance to reaffirm American resolve
countries, could provide similar
validation. The US is also seeking Putin’s
forbearance as it pulls out of Afghani-
stan and tries to place some forces else-
where in the region.
The US has largely been stuck on the
back foot since the crisis in Ukraine
erupted more than seven years ago.
Putin has learned that it pays to keep
Russia’s adversaries off balance.
Whether it’s by filling vacuums in global
hotspots or playing on the west’s inter-
nal divisions, he has shown repeatedly
that an assertive foreign policy doesn’t
have to cost much to be effective and
sustainable. His modus operandi leans
heavily on surprises and provocations
that force adversaries to deal with him
on his terms.
Russia’s military build-up in and
around Ukraine a few months ago illus-
trates how this game works. By staging a
war scare, Putin sought to pre-empt a
much anticipated wave of US sanctions
★ FINANCIAL TIMES
Opinion
The governing Democrats are too busy
to be vindictive about such bygones. But
the German chancellor, Angela Merkel,
who kept a scrupulous distance from
the last White House, will be the first
European leader to visit the new one.
It is hard to convey the desire in an
Asia-facing US for zero distractions
in the rest of the world. The waiving
It has been an odd
few years for the UK’s
moral standing in
Washington
of sanctions over the Nord Stream 2
pipeline, the exit from Afghanistan, the
presidential talks with Vladimir Putin,
all suggest a nation set on minimising
non-Chinese sources of stress.
To that end, Biden views the EU
Most rich countries are small
and very open to trade
Trade ratios of the richest countries*, 2019
Total trade as a % GDP per head at PPP,
of money GDP, 2019 2019 ($’000s)
Belgium
Netherlands
Taiwan
Austria
Switzerland
Germany
Sweden
Denmark
Australia
US
0 50 100
* Measured in GDP per head in purchasing power parity. Excludes oil
exporters, countries with <5m population and countries whose GDP
is distorted by foreign profits Sources: IMF; FT calculations
in most G7 members. But these phe-
nomena cannot be due to trade, since
the US is less open than the others, even
Japan. The true explanations include
the emergence of new fortunes in inno-
vative sectors, but also rent-extracting
behaviour throughout the economy
and, not least, absence of support for
income and work (notably, on the latter,
for mothers).
Why have the losses of industrial jobs
been so politically salient? A part of the
answer is that they were jobs of predom-
Resorting to protection is
like looking for keys under
a street light, because that
is where it is brightest
stemming from Russian interference in
the 2020 presidential election, the
SolarWinds hack and the poisoning and
imprisonment of opposition politician
Alexei Navalny. The thinly disguised
message: be careful, I can make life mis-
The Russian leader has
shown that an assertive
foreign policy doesn’t have
to cost much to be effective
erable for the west in places chosen by
myself. The only way to make sure
things don’t get really out of hand is to
talk to me directly. This is the true gene-
sis of the Geneva meeting.
Unfortunately for Biden, the percep-
tion that Putin is under greater pressure
at home is wrong. To be sure, the
regime’s poor handling of the pandemic
(a “strong and vibrant entity”) as a
guarantor of European cohesion, like
all pre-Trump presidents. In Washing-
ton, there is no bitterness or even much
discussion any more of Britain’s deci-
sion to leave it. But nor is there the
slightest qualm about engaging with
the continent through Berlin or Paris,
if London renders itself peripheral or
eccentric.
The logic of Brexit might further dis-
tance the two countries. To make a go
of it, the UK will have to show an oppor-
tunism that jars with Washington’s new
view of the world. One case in point is
regulatory and tax competition. The ink
was still damp on the US-led accord
for a minimum corporate tax rate
when Britain suggested exemptions for
financial services.
On a grander canvas, a post-EU UK
must also entertain Chinese trade and
investment, with all the qualms that
implies in Washington. It is true enough
The US lags far behind on openness
to trade
Trade in goods and services as a % of GDP
Germany World
France Japan
UK US
Italy
150
1970 1980 1990
Sources: Peterson Institute for International Economics; ONS
inantly white and male workers. But it is
also because, in the US, the absence of
universal healthcare and next-to-no
support for retraining and job-seeking
makes the loss of a job mean also the
loss of basic security. A modern econ-
omy becomes more flexible, not less, by
separating security from a specific job.
In the absence of what Danes call
“flexicurity”, protectionism may seem
inevitable. But nothing is going to bring
the old industrial jobs back. Robots are
going to replace workers on production
lines everywhere. Manufacturing will
end up like agriculture — fantastically
productive, while employing virtually
no production workers. As Posen
asserts, nostalgia is just not a sensible
policy.
Apart from nostalgia and a search
for security in the wrong place, there is
is a problem. With new infection num-
bers climbing, Moscow’s mayor ordered
most workers to stay at home this week
and businesses to shut down. High rates
of vaccine hesitancy undermine poten-
tial benefits from the splashy rollout of
the Sputnik V vaccine (over whose effi-
cacy doubts linger). But Putin is a smart
enough autocrat to make underlings
take the rap for these setbacks.
With oil prices at two-year highs, the
Russian government’s coffers are being
replenished. The brutal treatment of
Navalny showed people inclined to par-
ticipate in street protests that the
authorities mean business. The scale
and ferocity of repression far exceeds
any threat posed by recent protests. In
this environment, Putin feels embold-
ened. The regime is telling younger Rus-
sians, who do not care for him that
much, that they are free to seek their
fortune elsewhere. In an ageing
society like Russia, the stability and
that several G7 members favoured a
softer communiqué on China than
Biden secured over the weekend. But
only one has just lost the safety in num-
bers of its regional trade bloc.
For all the pomp of the new “Atlantic
Charter”, Britain and America will keep
returning to this crux. The point of
Brexit is the flexibility to scour the
world for commercial and diplomatic
openings. But the new US vision is one of
pan-western solidarity: against eco-
nomic undercutting, against the raw
weight of China.
It is a vision that animates Biden ever
more. With his domestic plans stalled,
his best chance of a consequential presi-
dency lies abroad. In essence, he is going
through a sped-up version of the out-
ward turn that US leaders perform after
a midterm loss of Congress.
For a sense of the change, consider
that it took him only a reported two
hours to call Israel’s new prime minister,
The age of employment in manufacturing
is ending everywhere
Manufacturing employment as a %
100 of total employment
80
60
40
20
0 5
2000 2010 2019 1980
Sources: Peterson Institute for International Economics; BLS; OECD
xenophobia. But the days when China
was the overwhelming force in supply of
cheap manufactures have long gone.
The debate now centres increasingly on
national security.
There is a view, for example, that the
pandemic proved the dangers of
extended supply chains. The opposite is
the case. After initial shortages, because
demand was so unexpectedly strong,
supply surged. Relying on one’s own
production would not have solved this.
There is a problem today with vaccine
supply, but that is due to a global short-
age of production capacity and the
strength of demand from the rich.
Yes, there is a case for maintaining
technological leadership in vital sectors
and for security of supply of essential
products. But these concerns need to be
defined and addressed with precision.
paternalism that Putin embodies still
find plenty of takers.
In these circumstances, Biden and
other western leaders must realise that
they cannot make Putin behave better
by indulging his need for attention or
providing reassurances about his fear of
US-backed regime change. Putin will
not change his ways, because this is how
he creates leverage even against a vastly
stronger yet risk-averse power like the
US. It’s how he stays relevant.
Yet Putin is not reckless. He carefully
calibrates his moves to avoid an outright
confrontation with the US. The Syria
operation was launched after it became
clear the Obama administration would
not intervene to topple Bashar al-Assad.
The spate of ransomware attacks by
Russian criminal groups is unlocking a
US-Russian conversation about cyber
security that Putin has sought for years.
What the Kremlin will respond to is a
US strategy that conveys resolve when
15
Naftali Bennett. His predecessor,
Benjamin Netanyahu, waited almost a
month for the same contact. Whether
this reflects anti-Netanyahu pique or a
less pandemic-occupied Biden, it
amounts to the same thing: a president
who regards shoring up the west as an
ever larger priority.
All UK governments get things wrong
about the US. My favourite is their
inflated sense of how many Americans
have an ancestral link to Britain (even
the white ones are more likely to be Ger-
mans than “cousins”). But this one
stands at a particularly odd angle to the
White House.
You have to be in at least the Sep-
tember of your life to remember when it
was the US chiding the UK to honour
global norms. If those days are back, the
junior nation should not assume it will
be costless.
janan.ganesh@ft.com
Germany France 35
Italy Canada
Japan UK 30
US
25
20
15
10
1990 2000 2010 2019
Above all, in economic competition with
China, democratic stability and invest-
ment in people, infrastructure and inno-
vation will be the decisive factors.
Meanwhile, the continuation of trade
across the world will not only cement
mutual interdependence but underpin
prosperity, especially for poorer coun-
tries, as the World Bank’s excellent
World Development Report 2020, on
supply chains and development,
stresses. This is also compatible with
tackling climate change, under the right
globally agreed policies. The G7 is
correct that the world trading system
needs reform. But this must not mean
destruction. We should not throw
liberal trade away for the wrong reasons
and in the wrong way.
martin.wolf@ft.com
our vital interests or personnel are at
risk, that enhances US and allied mili-
tary capabilities and that reinforces the
credibility of deterrence. That is how we
can best get the attention of the hard
men in the Kremlin. In other realms, the
most we can hope for probably is the re-
establishment of a handful of channels
of communication, along with decent
risk management and efforts to avoid
conflict in areas where we may bump
into each other.
The Biden team has many pressing
issues on its agenda. They may soon find
that the only stable and predictable ele-
ment in the relationship with Moscow is
the corrosive force of mistrust and dis-
appointment.
The writer is vice-president for studies at
the Carnegie Endowment for International
Peace and a former director for Russian,
Ukrainian and Eurasian affairs on the US
National Security Council staff
16 ★ FINANCIAL TIMES Wednesday 16 June 2021

Boohoo: the trying game

The online fashion retailer revealed a good start to its financial year yesterday, with strong sales growth.
Robust margins, above those of rival fashion groups, showed little impact from a continuing ethical overhaul.
But Boohoo shares still trade at a discount, reflecting concerns over governance at the Aim-listed group.

Twitter: @FTLex
Tech/Lina Khan:
antitrust avenger
Even in a sector the size of the US tech
industry, individuals can make a
difference. Elon Musk moves bitcoin
prices with a single tweet. Jeff Bezos
put pressure on US minimum wages by
raising Amazon’s hourly rate. Lina
Khan may beat them both by shaping a
new era of antitrust policy. Yet tech
company break-ups are not inevitable.
The 32-year-old Columbia Law
School professor has become an
unusual celebrity by calling for
antitrust laws to be retooled for the Big
Tech era. Her nomination to the US
Federal Trade Commission, which the
Senate is voting on, has bipartisan
support. Khan has spoken in favour of
breaking apart Facebook, Google and
Amazon. The ecommerce giant has
been in her sights for years. Khan
gained prominence with a 2017 article
titled “Amazon’s Antitrust Paradox”
that used the company to explain why
low consumer prices were not proof of
healthy competition.
She argued that scale and data
accumulation mattered too.
Amazon’s claim that it remains just a
tiny part of the global retail industry is
weakened by the fact that its market
value has increased by more than
$760bn since the start of the pandemic.
Khan’s appointment means that the
focus of tech regulation is likely to shift
from Europe to Washington this year.
Yet there is no suggestion that tech
companies face immediate break-ups.
FTC commissioners can investigate
and sue companies over antitrust
issues but they cannot create policies.
Antitrust regulation takes place in
courts, where cases are slow moving
and appeals are frequent.
The US has not broken apart a
company in decades. Its plan to split up
Microsoft in the 1990s was overturned.
For all the talk, there is no outline for
new regulation. A contingent of
Republicans criticises tech companies
yet believes extra regulation could hurt
innovation and the US economy. Not
all Republicans back the Democrats’
vision.
Proposals including the idea that
companies no longer compete against
third parties on their own platforms
did not receive Republican support.
Amazon was recently able to
complete the $8.45bn purchase of film
studio MGM. Khan’s appointment
would not mean the end of Big Tech. It
would signal a change of mood.
Politicians and regulators are slowly
acknowledging that competition policy
needs updating for the digital era.
Lufthansa:
heavier than air vehicle
Germans love Mallorca. Lufthansa has
laid on 747 jets to make the short hop
to the Spanish island this year. The
airline needs the same level of demand
from investors to rectify wonky
finances. It already has shareholder
authorisation to raise up to €5.5bn in
new capital. A dilutive equity offering
awaits. After a sharp run-up late last
year, its share price has plateaued.
Lufthansa’s strategic update
yesterday laid out how it can pay back
creditors, mainly the German state,
and achieve an operating margin of
8 per cent last seen in 2018. Markets
will need persuading. Debt is steep. Last
summer, a €9bn government bailout
package was approved by shareholders.
This year’s net debt including pension
obligations should hit €18.6bn, or six
times Bernstein’s 2022 ebitda forecast.
In the past, optimists expected the
group to sell off some subsidiaries. The
airline is planning to dispose of units
such as catering group LSG. Bolstering
cash flow to pay off sufficient debt
requires big cost reductions too.
Lufthansa expects to cut €3.5bn of non-
fuel overheads, roughly 8 per cent. This
depends on reducing staff costs by
20 per cent from 2019 levels, to which
unions have agreed. Lufthansa will also
shrink its aircraft fleet by a fifth over
the next two years. Lower costs should
mean higher operating sensitivity to
the eventual surge in air travel.
Lufthansa says summer bookings are
double March and April figures, albeit
at a time of fluctuating restrictions.
Management believes Lufthansa has
learned from operating a reduced
service in a pandemic-constrained
world. Expansion of its Eurowings
Discovery discount long-haul service,
efficiently levering off its European
hubs, should boost sales too.
Germany’s flag carrier needs a
jumbo-size recovery to pay off
liabilities. Even Lufthansa does not
expect leisure travel to recover fully
until 2023. Unions may demand more
Boohoo leads peers on operating ... yet lags behind on valuations ... because of a discount
metrics ...
All data 12 months to Q1 2021
Boohoo Asos Zalando
60
50
40
30
20
10
0 0
Gross margin (%) Revenue
(annual % change)
FT graphic Source: S&P Global
Boohoo’s ethical makeover is
progressing. The UK owner of online
brands PrettyLittleThing and Nasty
Gal is ticking the right boxes after
allegations that suppliers exploited
workers. To ensure a fashion-forward
transformation, Boohoo has hired the
Karl Lagerfeld of the legal world,
retired judge Sir Brian Leveson.
Yesterday, it revealed whopping
sales growth of 32 per cent and
robust profit margins in the three
months to May. Boohoo’s Agenda for
Change means improving ethics,
sustainability and supply-chain
transparency. All without making a
dent in financial performance.
The overhaul follows claims of
unsafe working conditions and low
pay at some UK garment factories. A
pay before then. Investors should
travel with airlines whose balance
sheets boast better streamlining.
Ashtead:
dollarising the FTSE 100
Soon FTSE 100 companies reporting in
dollars or euros could hold greater
worth than those reporting in pounds.
Equipment-hire group Ashtead is the
latest to switch. That would value
foreign currency exponents at just over
£1tn from a market worth of £2.2tn for
the City’s flagship share index.
Little Englanders may recoil, but the
UK’s real issue is retaining a decent
spread of listed companies.
Ashtead’s American boss, Brendan
acquired in 2020
100
80
60
40
20
Forward price/ Enterprise value to
earnings ratio forward ebitda ratio
Source: S&P Capital IQ
list of UK suppliers has already been
published. An international list will
follow. The stitch that Boohoo has
failed to unpick is the price discount
that its stock acquired last summer
when allegations first surfaced.
Improved prospects for online
retailers over the past 18 months have
spurred shares. Aim-listed rival Asos is
up 50 per cent while larger German
fashion portal Zalando has more than
doubled since the start of 2020.
Boohoo shares have gone up just a
tenth. A 29 times forward earnings
multiple puts them at a discount to
both Asos and Zalando. Boohoo’s faster
growth and higher margins suggest it
should be trading at a premium.
Clearly supply-chain reform has not
entirely quashed ethical concerns.
Horgan, presented full-year results via
webcast from South Carolina
yesterday. Ashtead has grown steadily
in the US through bolt-on acquisitions.
That country generates 80 per cent of
revenues and 90 per cent of profits.
In its last full year of exposure to the
vagaries of sterling, profits before tax
slipped slightly to £936m. Rafts of
other adjustments may now go, too.
Dividend policy — Ashtead has raised
the payout annually for 16 years — will
no longer involve currency forecasting.
The only remaining awkwardness
will be between accounts in a foreign
currency and a sterling share price.
That applies to a quarter of other FTSE
100 groups. Mostly big multinationals,
many are miners that have swelled in
value during the commodities boom.
Ashtead’s adept financial
Share prices (rebased)
250
Zalando
200
150
100
Boohoo
50
Asos
0 plan for a complicated demerger of the
Jan 2020 Dec 2021 Jun
Source: Refinitiv
Shifting to a FTSE listing is the next
logical step. A shift from London’s
junior Aim market to a full listing
would reinforce the message that the
group is serious about growing up.
Boohoo’s market value of £4bn is
already higher than many main-list
companies. Founders Mahmud
Kamani, who is the executive chair,
and Carol Kane may be one obstacle
to a switch. Aim’s looser governance
rules often suit owner-managers.
Their acquiescence may not be
necessary. Their shareholdings,
combined with that of Kamani sibling
Rabia, have fallen from one-quarter
at the start of 2020 to one-fifth,
according to S&P Capital IQ. Boohoo
should step up to the main market
even as it steps up ethical oversight.
management during the pandemic has
combined with a rebounding US to
boost its own value to some £23bn,
leaving a good company with pricey
shares. A forward earnings ratio of 29
times compares with estimated three-
year EPS growth of 18 per cent. Any
threat comes from inflationary shocks
rather than managerial over-reach.
Critics accuse Ferguson of that. The
UK-based plumbing and heating group
plans to switch its main listing in stages
to the US. This is unpopular with UK
funds restricted to holding stocks with
main listings in London.
Ashtead has no plans to follow suit.
Just as well for London. Takeovers and
infrequent flotations have reduced its
inventory of listed stocks. According to
London Stock Exchange data, the total
has fallen 28 per cent since 2000.
Vivendi/Dan Loeb: party
people in the house
Good parties attract gatecrashers.
Vivendi’s proposed Universal Music
Group spin-off is as grand a fête as you
can imagine. No wonder Daniel Loeb is
in on the fun that has attracted fellow
activists such as Francesco Trapani of
Bluebell Capital.
One attraction may be hostility
among some independent shareholders
to the French media conglomerate’s
world’s biggest music label. Another
could be the chance to mess with a deal
involving fellow activist Bill Ackman.
But on the face of it, there is not
much gatecrashers can do to stop the
music. Billionaire and former Vivendi
chair Vincent Bolloré holds 30 per cent
of voting rights. The separation will be
via a “dividend-in-kind” structure.
This will mean 60 per cent of
Universal’s equity being spun off and
listed in Amsterdam. Shareholders in
Vivendi will receive shares as a special
dividend. The problem is that minority
shareholders face big tax liabilities. It
explains why Bluebell has asked
Vivendi to pay shareholders an extra
cash dividend of about €3.3bn.
It is a legitimate gripe. Even more so
given that Vivendi is in talks to sell half
of its remaining 20 per cent stake in
Universal to Ackman’s “blank cheque”
group. Investors are right to ask why
Ackman can buy into UMG without
incurring similar tax liabilities.
The question is what leverage
dissenters can exert to extract better
terms or even derail the UMG
separation altogether. Vivendi needs
only a simple majority of 50 per cent to
approve the spin-off. Bolloré’s holding
company owns a 27 per cent stake in
Vivendi, controlling the group with
29.73 per cent of the voting rights. A big
backlash from minorities would be
required to defeat him.
Activist investors should remain
even so. Bolloré could be tempted to
use proceeds from the Ackman deal to
fund a buyback of Vivendi’s shares,
extending his control over the business.
Determined gatecrashers have
stamina as well as cool nerves.
Lex on the web
For notes on today’s stories
go to www.ft.com/lex

CROSSWORD
No 16,813 Set by GOZO
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1 H.H. Munro comes round March 2nd
È and 3rd for 10 Oramo (6)
4 10 could admit “Am Ernest” (8)
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form (7)
11 Sailor’s holds for 10 Andris (7)
12 Card game. Solo, maybe (8)
äá äÞ 13 Reptile of Antiguan antiquity (6)
15 10 Bohm knew all Rossini’s libretti, for
äÚ starters (4)
16 10 upset geologist, king admitted (5,5)
äÖ äÒ äÎ 19 Hallé 10’s cutting remark to team
about drum beat (10)
äË 20 10 Riccardo is a crew member on The
Bounty. Not half, he is! (4)
äÈ á. 22 10 Claudio at pop-group’s party (6)
24 Sleepers, awake! is no cure for this! (8)
áä 27 10 Bernard on part of Hispaniola with
new knight (7)
áá áÞ áÚ áÖ 28 Like Britain – is Great, maybe (3-4)
29 Last of women treated badly – were
áÒ gossips (8)
30 Direct telephone connection with
áÎ áË Alabama (6)
DOWN
1, 3 Stunning 10-0 triumph first for 10
(5,6)
áÈ Þ. 2 10 Otto at Kuala Lumpur with
sovereign ruler, reportedly (9)
3 See 1 down
5 Square in Clacton in Essex (4)
6 Solver said record is English hymn (8)
7 A weaver raised dough (5)
JOTTER PAD 8 10 Arturo at opera, mounting popular
new one (9)
9 Legendary horned creature roaming
moors once (9)
14 Comic effect of puppet, holding
redhead’s head (9)
15 He decreed a dome but would baulk
Solution 16,812 over eastern inn (5,4)
17 Racket as girl embraces injured don
Ð B 7 < : N € N à Ô N ‚ × E (4,5)
N ‚ æ æ Ï ã H æ
: ‚ B } æ K K ~ E ‚ 㠂 × B
18 Two sentences for the avian
: : 8 K B 7 Ú community (8)
} æ Ò N ~ ‚ Ú × ‚ } Ý B K × 21 See 25
æ ‚ < : B ‚ 7 Ú
7 Ô Ý Ú N Ú Ú 7 Ô € € N } 23 Save about one pound and made a
N 7 N ~ H æ Ï ‚ house (5)
‚
€ B
Ú
× ã
B
‚ Ý ×
B ~
? Ô
×
8 ã N Ý
N ã
25, 21 10 revised atonal triad (5,6)
€ N E B 7 } € ‚ Ý Ú æ 7 ~ N 26 Channel broadcasting cricket to
: 8 € æ ã Ú H eastern isle (4)
‚ 8 N Ý B ~ ‚ 7 N ‚ Ý B 7 H
§ € 7 H ª ã Ò B
N 8 € æ } B N } × ‚ < N × æ