THURSDAY 21 JANUARY 2021 WORLD BUSINESS NEWSPAPER EUROPE

‘Democracy
has prevailed’
3 Call for Americans to come together to end ‘uncivil war’
3 Salvo of executive orders to unpick predecessor’s legacy
Joe Biden is sworn in as the 46th president as his wife Jill looks on at the US Capitol in Washington yesterday — .Saul Loeb/Pool/AP

James Politi and Lauren Fedor
Washington
Joe Biden hailed the resilience of US
democracy and appealed for unity in a
divided nation as he was sworn in as the
46th president, completing a tumultu-
ous transfer of power marred by the
recent deadly attack on the Capitol.
In his inaugural address, Mr Biden did
not mention Donald Trump by name
but said the foundations of the US politi-
cal system had been tested by his prede-
cessor’s refusal to concede defeat.
“We have learned again that democ-
racy is precious, democracy is fragile
and, at this hour my friends, democracy
has prevailed,” Mr Biden said. He called
on Americans to come together to tackle
the pandemic and economic downturn
during what he described as a “winter of
peril and significant possibilities”.
“My whole soul is in this: bringing
America together,” he said, in a clear
break from the divisiveness of Mr
Trump, adding that “politics doesn’t
have to be a raging fire”.
“We must end this uncivil war that
pits red versus blue, rural versus urban,
conservative versus liberal,” he said.
Mr Biden’s oath of office was adminis-
tered by Supreme Court chief justice
John Roberts in the presence of congres-
sional leaders from both parties and
former presidents including Barack
Obama, Bill Clinton and George W Bush
— but not Mr Trump, who flew to Flor-
ida yesterday morning.
The ceremony, which was heavily
guarded by 25,000 troops, took place on
the steps of the US Capitol before Mr
Biden’s inaugural address just two
weeks after the seat of American
democracy was attacked by pro-Trump
rioters, leaving five people dead.
At 78 years old, Mr Biden is the oldest
incoming US president. He will be
joined by Kamala Harris, the former
senator from California, who will serve
as the first female, first black and first
Asian-American vice-president. She
was sworn in by Supreme Court justice
Sonia Sotomayor, after Lady Gaga sang
the National Anthem and before a per-
formance by Jennifer Lopez.
Mr Biden also called on Americans
Kamala Harris’s vice-presidency and US lawmakers to rally around his
marks multiple milestones sweeping agenda of economic and social
relief in the midst of the pandemic. He
has called for large-scale government
spending and some tax increases to
stimulate the recovery and redress
entrenched economic and racial ine-
qualities. “It’s time for boldness, for
there is so much to do,” he said.
“Together, we shall write an Ameri-
can story of hope not fear, of unity not
division of light, not darkness,” he said.
“A story of decency and dignity, love and
healing, greatness and goodness.”
Mr Biden vowed to “repair our allian­-
ces and engage with the world once
again” after tensions under Mr Trump.
He promised that the US would “lead,
not merely by the example of our power
but by the power of our example”.
The new president has signed execu-
tive orders that immediately reverse
some of Mr Trump’s most controversial
policies in areas ranging from climate
change to immigration.
The US intends to rejoin the Paris cli-
mate accord and stop its withdrawal
from the World Health Organization.
Mr Biden will halt the construction of
the border wall with Mexico that was
championed by his predecessor and roll
back the travel ban on citizens of certain
Muslim countries.
He will also send an immigration
reform bill to Congress that creates an
eight-year pathway to citizenship for
undocumented immigrants.
News & Analysis pages 2&3
Editorial Comment page 18
Opinion page 19

No fanfare for Trump as he boards

final Air Force One flight to Florida
Demetri Sevastopulo and you soon,” he added, before boarding successor’s inauguration. He did not call
Courtney Weaver — Washington
his final Air Force One flight destined Joe Biden to concede defeat nor invite
In the end, it was over with a whimper. for Palm Beach, Florida. him to the White House. He did not even
Donald Trump, a president defined by If Mr Trump’s departure was low key, mention his successor by name in his
barnstorming rallies, exited the stage it was not without the controversy that farewell speech, though he wished the
Italy threatens legal action without any pomp and circumstance, punctuated his four years in office. Just incoming administration “great luck
against Pfzier over vaccine bringing the curtain down on a chaotic hours earlier, he delivered dozens of and great success”. He added: “The
administration that had shocked the pardons including to Steve Bannon, his future of this country has never been
Report i PAGE 4 world and tested the very fabric of US divisive former strategist, and rappers better . . . They have the foundation to
democracy. Lil Wayne and Kodak Black over weap- do something really spectacular.”
ons charges. In his only nod to the norms of trans-
Austria €3.90 Malta €3.70
Bahrain Din1.8 Morocco Dh45 A small group of family members and After losing the election, Mr Trump ferring power, Mr Trump left a letter for
Belgium
Bulgaria
€3.90
Lev7.50
Netherlands
Norway
€3.90
NKr40 supporters — tiny compared with the made a furious attempt to overturn the the new US president in the White
Croatia Kn29 Oman OR1.60 crowds he drew during his two election result, peddling baseless claims of mass House, according to an official, who did
Cyprus €3.70 Pakistan Rupee350
Czech Rep Kc105 Poland Zl 20 campaigns — gathered to wave off the voter fraud and pressuring Republican not elaborate on its contents.
Denmark
Egypt
DKr38
E£59
Portugal
Qatar
€3.70
QR15
outgoing president from Joint Base officials to reverse the outcome. But his Mr Trump’s long list of pardons —
Finland €4.70 Romania Ron17 Andrews. He delivered a short, some- last-gasp campaign screeched to a halt which in the end did not include himself
France €3.90 Russia €5.00
Germany €3.90 Serbia NewD420 what deflated speech, in which he dan- two weeks ago, when a mob of his sup- or his family — came as the Senate pre-
Gibraltar
Greece
£2.90
€3.70
Slovak Rep
Slovenia
€3.70
€3.70
gled the possibility of a political come- porters launched a deadly attack on the pares for Mr Trump’s second impeach-
Hungary Ft1200 Spain €3.70 back. US Capitol. ment trial, this time for inciting the riot
India Rup220 Sweden SKr39
Italy €3.70 Switzerland SFr6.20 “We will be back in some form,” Mr Mr Trump was the first president in in the nation’s capital.
Lithuania
Luxembourg
€4.30
€3.90
Tunisia
Turkey
Din7.50
TL19
Trump said. “Have a good life. We’ll see more than 150 years not to attend his Trump leaves White House page 2
North Macedonia Den220 UAE Dh20.00

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2 ★ FINANCIAL TIMES Thursday 21 January 2021

Biden inauguration

Trump leaves
White House
after issuing
Bannon pardon
Former strategist among dozens of
people granted last-minute clemency
Demetri Sevastopulo — Washington was suspended in November after he
said Christopher Wray, the FBI director,
Donald Trump brought an end to his
and Anthony Fauci, a top member of the
tumultuous presidency after issuing an
coronavirus task force, should be
eleventh-hour pardon to Steve Ban-
beheaded.
non, his former strategist.
Mr Bannon said the heads of the men,
Just days after his historic second who had contradicted Mr Trump on
impeachment for inciting a mob that occasions, should be placed on pikes
stormed the US Capitol on January 6, Mr outside the White House to warn other
Trump pardoned one of the most divi- officials not to cross the president.
sive and polarising people in his political The White House said in a statement
orbit. The pardon was one of dozens listing well over 100 pardons and com-
issued at the last minute for former poli- mutations that Mr Bannon was “an
ticians, people convicted of drug important leader in the conservative
offences and Lil Wayne, the rapper. movement and is known for his political
Mr Bannon was charged last year by acumen”.
federal prosecutors in New York with Lil Wayne recently pleaded guilty to
defrauding hundreds of thousands of possessing a loaded, gold-plated hand-
Trump supporters who donated to a gun and faced up to 10 years in prison.
crowdfunding campaign to build the The musician appeared to endorse Mr
wall on the US-Mexico border, which Mr Trump for re-election when he posted a
Trump pledged to erect during the 2016 photograph of himself and the president
race. Mr Bannon had pleaded not guilty on Twitter and said he backed Mr
and was released on bail awaiting trial. Trump’s criminal justice reform efforts
Mr Trump did not issue pre-emptive and economic programme for African
pardons for himself or any of his family, Americans.
an idea he floated in conversations with The list of pardons included a number
staff after losing the November election. of ex-politicians, including former Cali-
Most constitutional scholars said he fornia congressman Randall Cunning-
could not pardon himself, but the the- ham and Kwame Kilpatrick, the former
ory has never been tested in court. Democratic mayor of Detroit convicted
The pardon of Mr Bannon is likely to in 2013 of two dozen charges that
spark fierce criticism. He ran the final included extortion and racketeering.
leg of the president’s 2016 campaign Elliott Broidy, a former Republican
before he was fired from the White National Committee deputy national
House. Mr Bannon’s Twitter account finance chair, was also pardoned. He
had been charged with failing to register
as a lobbyist in connection with the cor- Pomp and ceremony: the US Capitol during yesterday’s inauguration, a far cry from the attack it suffered two weeks previously — Jim Bourg/Reuters
Beijing backlash ruption scandal surrounding 1Malaysia
Pompeo among those Development Berhad, the sovereign
wealth fund.
hit with China sanctions Anthony Levandowski, co-founder of
Google’s self-driving car project, who Upper chamber
China imposed sanctions on a was given an 18-month prison sentence
number of former Trump
administration officials, including
outgoing US secretary of state Mike
Pompeo, accusing them of having
last year for stealing trade secrets to
help Uber, was also granted clemency.
Separately, Mr Trump issued an exec-
utive order rescinding an order he made
Moderates emerge as Senate dealmakers
“seriously violated” its sovereignty. in his first month in office that imposed
Beijing took the rare move a day strict restrictions on lobbying by former Lauren Fedor — Washington Murkowski of Alaska and Maine’s Susan cratic senator from South Dakota, the Others are more sceptical, given how
after the Trump administration administration officials. The move Collins. Senate majority leader. sharp the partisan divide has become.
There is a new group of political power
declared the repression and came despite his claim four years ago he “They become the dealmakers, or the Mr Daschle, who left the Senate in Mr Biden takes office under the long
brokers in Washington.
detention of more than 1m Muslim would “drain the swamp” of lobbyists. deal breakers, depending on what the 2005, said this week he thought it was a shadow of an impeachment trial for Mr
Uighurs in the north-western Mr Trump’s pardons stand out in They will not be found in the White bill is,” said Republican strategist Doug “good thing” that Mr Biden’s agenda Trump, and it remains unclear whether
Chinese province of Xinjiang terms of their controversy, according to House or government departments, nor Heye. “Clearly, they are in a position of would depend on the backing of people more than a dozen Republican senators
amounted to genocide. Jack Goldsmith, a Harvard Law School in the ranks of congressional leadership, influence that is much greater than just such as Mr Manchin, a self-described will vote to convict the outgoing presi-
The Chinese foreign ministry said professor. Prof Goldsmith found that but rather in the Senate, where a hand- a week ago.” “conservative Democrat” from a state dent for inciting the January 6 unrest.
it was placing sanctions on 28 the overwhelming majority had been ful of centrist lawmakers are ready to Democrats still control the agenda, Donald Trump won by an almost 40- “It is a very different environment
individuals, including Matt granted to people with whom the wield outsized influence. with Chuck Schumer, the senator from point margin in November. Mr Manchin now,” Mr Heye said. “Given the polarisa-
Pottinger, former deputy national former president had a connection. Their newfound power comes as the New York, becoming Senate majority sided with Republicans on abortion and tion in the country, which manifests
security adviser, who was one of He also issued dozens of pardons and Democrats prepare to take control of leader, and Mitch McConnell, the upper voted for Brett Kav­anaugh’s nomination itself in both the House and the Senate,
the main drivers of the hawkish commutations in December. The list the upper chamber of Congress by the chamber’s top Republican, demoted to to the Sup­reme Court. it is going to be hard to get things done.”
approach to Beijing over the past included Paul Manafort, his first cam- narrowest of margins after winning two minority leader. Nancy Pelosi, Demo- “They will be the ones who can ensure So far, a few Republicans have indi-
couple of years. paign manager, and Roger Stone, the run-off elections in Georgia this month. cratic Speaker of the House of Repre- that there is at least an effort to reach cated they are open to conviction.
Also targeted were Robert self-described political dirty trickster The 100-member Senate will be split sentatives, will maintain control of the compromise,” Mr Daschle said of Mr While Mr Biden may use a process
O’Brien, former national security and a confidant of the president. 50:50, with Kamala Harris, the vice- lower chamber. Manchin and other moderate Demo- called budget reconciliation to push his
adviser, and John Bolton, his Mr Trump also pardoned four men president, having a casting vote. The Senate has been split evenly just crats. “I have always said that compro- relief plans through the Senate with a
predecessor in the position. who were convicted of killing Iraqi civil- Given the tight margins, a group of once before, in 2001, when Dick Cheney, mise is the oxygen of democracy, and we simple majority, most of his other pro-
The sanctions mark the latest ians in Baghdad while working for self-styled moderates that do not always George W Bush’s vice-president, could need a lot more oxygen in the Senate posals will need the backing of at least
deterioration in relations between Blackwater, a private security company vote along party lines will prove crucial cast a tiebreaking vote for Republicans. now.” 60 senators under arcane “filibuster”
Washington and Beijing. New once owned by Erik Prince. Mr Prince is to President Joe Biden’s chances of pass- But that changed in June that year rules. So Mr Schum­er will not only need
president Joe Biden has vowed to the brother of Betsy DeVos, who served ing legislation, most pressingly his when Jim Jeffords, a senator from Ver- Inside and online
to hold on to votes from Mr Manchin
be tougher on China, and last year as Mr Trump’s education secretary. $1.9tn Covid-19 relief package. The mont, left the Republican party to cau- See Editorial Comment, Opinion, and other moderate Democrats, but also
described Chinese president Xi Charles Kushner, the father of Jared group includes Democrats Joe Manchin cus with the Democrats, leaving the Markets and Lex win over as many as 10 Republicans to
Jinping as a “thug”. Kushner, Mr Trump’s son-in-law, was of West Virginia and Arizona’s Kyrsten chamber 51:49 in Democrat hands. The ft.com/us pass significant pieces of legislation —
pardoned last month. Sinema, as well as Republicans Lisa switch made Tom Daschle, the Demo- no small feat in this political climate.

Zients appointment
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription ‘Mr Fix It’ put in charge of tackling coronavirus crisis
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
Kiran Stacey — Washington response,” said Tom Frieden, former Previously with Bain Consulting, and is not necessarily going to be doing what
Hannah Kuchler — New York
Trump vs the Valley
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
A Five Star plan?
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
Dear Don...
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
head of the US Centers for Disease Con- then Advisory Board, a healthcare is going to help the most people immedi-
HMRC warns Lloyd’s of Brussels Insurance market
to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

Joe Biden has promised to put science trol and Prevention. “You need someone research company that went public, Mr ately, but doing things that do not dis-
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

to be the conductor of the orchestra. Zients came to public prominence in rupt business as usual, whether that’s
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE
back at the heart of the US govern-
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
TECHNOLOGY IS
being swamped i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

They don’t need to know how to play 2009 when Barack Obama hired him as not upsetting the stock market or not
i Emerging nations in record debt sales Warning: this article may be

ment’s response to the pandemic. Yet

FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

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

3 Confidence in IT plans ‘has collapsed’

Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
every instrument, you just need to know the government’s first “chief perform- creating regulatory uncertainty, or not
A survey has revealed that a
3 Fivefold rise in declarations expected record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen

the man he has chosen as his White

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

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

fresh tax probe

what to do to get the best out of them.” ance officer”, before asking him to turn expanding the state.”
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings

House coronavirus tsar is not a scien-

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

The US has been hit harder by the round the error-plagued launch of Others say they are worried about the
Setting up a digital customs system CDS, indicating it would be delivered on
has been at the heart of Whitehall’s time. But last month, it wrote to the i HSBC woos transgender customers
Brexit planning because of the fivefold committee saying the programme had The bank has unveiled a range of gender-neutral it followed “a strategy offull client tax

tist, but rather a management consult-

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

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

28821, Coslada, Madrid. Legal Deposit Number

pandemic than most other countries, HealthCare.gov, the insurance exchange most important coronavirus job in the
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
Terror attacks inwith
co-operating western Europe after
authorities reach
itsattacks — of this investigation sends a clear The lure of the exotic

ant and investor known to former

both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
to make sure that each project gets the Recent
focus and resource it requires for suc- offices in London, Paris and Amsterdam notably the message
2011 that there is no hiding place for
cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair
“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
HMRC’s letters to the select commit- of foreign flora — HOUSE & HOME

Bracken House, 1 Friday Street, London EC4M 9BT.

The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
tee, which will be published today, pro-
vide no explanation for the rating
change, but some MPs believe it was
Lloyd’s of London chose Brus-
sels over “five or six” other
insurers to follow. Most of the
business written in Brussels
EU, with Dublin and Luxem-
bourg thought to be more likely
AFP
parts in Germany wereBrussels
while Australia’s revenue department
Norway
said it was investigating a Swiss
(Deposito Legal) M-32596-1995;
Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint-
attacks in Paris
also involved,
and Nice, and
ings and gold ingots as part of their
Brussels suicide
Nice bank.
the while French officials said their
probe;
investigation had revealed “several

whether Whitehall can implement a
host of regulatory regimes — in areas
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
cities in its decision to set up an
EU base to help deal with the
will be reinsured back to the
syndicates at its City of London
homes for the industry. But Paris
Mr Nelson said the city won on The inquiries threaten to undermine
efforts by the country’s banking sector
with case numbers, hospital admissions website used to distribute the policies White House being done by a non-scien-
bombings — have
thousand” bank accounts opened in
bucked the trend
Switzerland and not declared to French

Publishing Director, Roula Khalaf;

ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
its transport links, talent pool
and “extremely good regula-
tory reputation”.
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
Lex page 14
Insurers set to follow page 18
Obama staff as “Mr Fix It” for his ability
of generally low
to overhaul business models and ensure tax authorities.
fatalities from
customers meet international tax The Swiss attorney-general’s office
requirements following a US-led clamp- western Europesaid it was “astonished at the way this
down on evaders, which resulted in operation has been organised with the
billions of dollars in fines. deliberate exclusion of Switzerland”. It

Publishing Company, The Financial Times Limited,

The probes risk sparking an interna- demanded a written explanation from

Subscriptions & Customer service tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

offered under the Affordable Care Act. tist, especially if he undermines or
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
THE RISE OF ECO-GLAM

to turn round failing government

actions co-ordinated by Eurojust, the ranging conspiracy” to help clients
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.
Escape the taper trap
banker loses job over WhatsApp boast How high earners can evade

Subscription offers: www.ft.com/subscription

Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris registered office as above. Local Representative office;
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY

Mr Zients’ answer was to bring in the interferes with the work being done by
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

Contact: +44 207 775 6000, fte.subs@ft.com

Christopher Niehaus, a former Jeffer- ban people from installing apps on their

C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN

A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
Shutdown risk as border
regulators cracking down on commu-
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
projects.
private phones.
Brussels takes tough stance on Brexit
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
390_Cover_PRESS.indd 1 19/01/2017 13:57

wall bid goes over the top nications over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything

Manage your personal account: mma.ft.com

Congressional Republicans seeking to
avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
else”.
Information shared by Mr Niehaus
1135-8262. Jeff Zients will private sector: he hired experts from the CDC, which was frequently sidelined
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

Advertising
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
to accept the proposals.
staff’s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
encryption system that cannot be
new media from work-issued devices,
but the situation has become trickier as
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
as iPhone-loving staff spurn their work-
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
UAE: Masar Printing & Publishing, P.O. Box 485100,
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
fully been singled out for unfavourable
treatment by the council at the behest of
require “existing regulatory, budgetary,
supervisory and enforcement instru-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”
have oversight of
Dubai. Editor in Chief: Roula Khalaf. As Mr Biden begins his presidency, Jeff Google and made Optum, a division of by the Trump administration.
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and

Tel: +44 20 7873 4000 asiaads@ft.com,

US budget Q&A and
Trump attack over health bill i PAGE 8
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
About 2.3m people will benefit from
today’s increase in the national living
wage to £7.50 per hour. But the rise
will pile pressure on English councils,
European Council president Donald
Tusk’s first draft of the guidelines,
which are an important milestone on
the road to Brexit, sought to damp Brit-
Mr Tusk’s text left room for negotiators
to work with in coming months. Prime
minister Theresa May’s allies insisted
that the EU negotiating stance was
citizen rights, which Whitehall officials
believe means simultaneous talks are
possible if certain conditions are met.
Boris Johnson, the foreign secretary,

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which will have to pay care workers a
lot more. Some 43 per cent of care
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aged 25 and over — earn less than the
ain’s expectations by setting out a

France: Publishing Director, Jonathan Slade, 46 Rue La

“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
largely “constructive”, with one saying it
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation the entire federal
Zients will be the co-ordinator of his United Healthcare, the project’s main Lawrence Gostin, a public health pro-
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
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Mar 30
50.22
52.98
1248.80
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49.51
52.54
1251.10
Fed Funds Eff
%chg US 3m Bills
1.43 Euro Libor 3m
0.84 UK 3m
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0.66
0.78
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53.35
1244.85
50.35
53.13
1248.80
0.22 Euro Libor 3m
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Thursday 21 January 2021
Executive orders
Raft of Trump policies axed on first day
President acts to rejoin
climate pact and halt
building of Mexico wall
James Politi and Lauren Fedor
Washington
Joe Biden signed a number of executive
orders on his first afternoon as US presi-
dent, aiming to reverse some of prede-
cessor Donald Trump’s most controver-
sial policies in areas ranging from cli-
mate change to immigration.
Mr Biden used his inaugural address
from the Capitol, which was under
heavy military protection after the Jan-
uary 6 attack, to ask Americans to unite
as they face the twin crises of Covid-19
and a bruising economic downturn.
His conciliatory message was
intended to mark a sharp contrast with
the divisive rhetoric that defined Mr
Trump’s four years in office, which cul-
minated in a mob of his supporters
Pushback
Business warns on tax and wage increases
Andrew Edgecliffe-Johnson
New York
Business leaders are warning they will
fight moves to raise corporate taxes,
tighten regulation and double the fed-
eral minimum wage under the Biden
administration, even as they signalled
strong support for the new president’s
plans to tame the pandemic and stimu-
late the economy.
Trade associations and individual exec-
utives have publicly affirmed the legiti-
macy of Mr Biden’s election, pulled
campaign contributions from Republi-
cans who contested his victory and
given parts of his agenda a warmer wel-
come than Democrats have been used to
from the business community.
They have also welcomed a number of
proposed policy reversals including
rejoining the Paris climate accord, re-
entering the World Health Organization
and creating a path to citizenship for
11m undocumented immigrants.
These amounted to “a most promis-
ing start for a new federal administra-
tion”, the Partnership for New York City
declared on Tuesday.
“The CEOs of the Business Roundta-
Clockwise, from
main: former
vice-president
Mike Pence,
right, applauds
as Joe Biden
embraces wife
Jill after being
sworn in; poet
laureate
Amanda
Gorman recites
a poem; Kamala
Harris takes the
oath; Donald
Trump and wife
Melania leave
the White House
Andrew Harnik/AP;
Kevin Lamarque/Reuters;
Daniel Acker/Bloomberg;
Eric Thayer/Getty
launching the assault on the seat of US
democracy.
On the global front, Mr Biden sig-
nalled that the US intended to rejoin the
Paris climate accord and halt its
withdrawal from the World Health
Organization.
Among the 15 executive orders
released yesterday morning was a “100-
day masking challenge” to promote the
wearing of face masks. Anthony Fauci,
the health official who was often at odds
with Mr Trump over the coronavirus
response, will participate in this week’s
executive board meeting at the WHO as
head of the US delegation.
In addition, Mr Biden is stopping the
construction of the border wall in Mex-
ico that was championed by his prede-
cessor. He is also rolling back the travel
ban on citizens of certain Muslim coun-
tries introduced at the very beginning of
Mr Trump’s administration.
“It was rooted in xenophobia and reli-
gious animus and president-elect Biden
ble stand ready to be constructive part-
ners” to the new administration, Doug-
las McMillon, Walmart chief executive
who chairs the big-business lobby
group, said.
The US Chamber of Commerce, which
has traditionally supported far more
Republicans than Democrats, adopted a
similar tone last week when its chief
executive, Tom Donohue, declared that
it would “look for a lot of ways to make
the Biden administration succeed”.
But Mr Donohue hedged his comment
by adding that the business group’s
members would not “give away the
store right up front”.
The middle of a fragile pandemic
recovery was “exactly the wrong time to
further test the resiliency of businesses
by hiking taxes or heaping on new regu-
lations that do more harm than good”,
he warned, saying that the chamber
would use every tool at its disposal to
ward off “regulatory over-reach”.
Raising corporate taxes would be “a
really retrograde step”, BRT chief execu-
tive Josh Bolten agreed on Tuesday,
even as he voiced the group’s backing for
Mr Biden’s plans to accelerate vaccina-
tions, support small businesses and pur-
★ FINANCIAL TIMES
Biden inauguration
has been clear that we will not turn our
back on our values with discriminatory
bans on entry to the United States,” Jake
Sullivan, the incoming national security
adviser, said of the Muslim ban.
The president is also sending an
immigration reform bill to Congress
that creates an eight-year pathway to
citizenship for undocumented immi-
grants. The bill will need to be approved
End of the line: construction of the
Mexico border wall will stop
sue policy priorities from infrastructure
investments to rethinking tariffs on US
allies.
Their comments were both a restate-
ment of long-held positions on tax and
regulation and a signal that Mr Biden is
likely to find that corporate support is
limited, particularly when it comes to
funding his spending plans.
That could also leave the incoming
president struggling to satisfy a liberal
wing of his party that is determined to
see corporate tax increases, tougher reg-
ulation on energy, finance and tech
companies, and an increase in the fed-
eral minimum wage from $7.25 an hour
to $15. Mr McMillon said BRT members
favoured raising the minimum wage in a
“thoughtful” way that took geographic
differences and the needs of small busi-
nesses into account. Neil Bradley, the
chamber’s chief policy officer, said that
it saw “nothing sensible about $15”,
arguing that such a rate would cost jobs
and damage the economy.
Democrats’ plans to stimulate the
economy with investment in infrastruc-
ture programmes have found wide-
spread support among business
leaders.
by both the House of Representatives
and the Senate if it is to become law.
Democrats took control of the upper
chamber of Congress yesterday after-
noon, after Kamala Harris was sworn in
as vice-president and two recently
elected Democrats from Georgia, Rap-
hael Warnock and Jon Ossoff, took their
seats in the Senate.
Mr Biden also plans to move to
reverse some of the environmental
deregulation pursued by Mr Trump,
and introduce a mask mandate lasting
100 days on federal property to try to
curb coronavirus infections.
The new president aims to rescind the
permit for the Keystone XL pipeline
connecting the US with Canada. “Its
construction was not consistent with
addressing the climate crisis to the
depth and scope that we are planning to
address it,” said Gina McCarthy, the
incoming climate tsar.
Ms McCarthy said the Biden adminis-
tration would place a temporary mora-
Damaged ties
EU urges refocus on transatlantic relations
Sam Fleming and Michael Peel
Brussels
Ursula von der Leyen, European Com-
mission president, saluted a “new
dawn” in the US following the depar-
ture of Donald Trump as she called for
a revival of the tattered transatlantic
partnership.
Speaking to the European Parliament
ahead of Joe Biden’s inauguration yes-
terday, Ms von der Leyen said the EU
would be seeking joint action with
Washington in areas including the Cov-
id-19 response and climate change.
Mr Trump’s departure has been
mark­ed by relief in European capitals
after a tempestuous four years in which
the former property baron stoked trade
tensions with the EU, questioned the
Nato military alliance and ditched US
commitments to the Paris climate
accord and the Iran nuclear deal.
The frayed relations have left a lasting
impact in European capitals, despite the
warm welcome they will offer the new
US president. A drive for the EU to
achieve greater “strategic autonomy” in
areas from industrial policy and defence
to finance and the role of the euro took
torium on all oil and natural gas leasing
activities in the Arctic National Wildlife
Refuge.
On the economic front, Mr Biden is
asking government agencies to consider
extending moratoriums on evictions
and foreclosures, and extending the
pause on interest and principal pay-
ments for federal student loans.
In terms of racial justice, Mr Biden is
rescinding Mr Trump’s “1776 commis-
sion”, which was set up by the outgoing
president to “restore patriotic educa-
tion to our schools” and was criticised
for seeking to erase the history of racism
in the US.
At 78, Mr Biden is the oldest incoming
president in US history, and faces a huge
task in rebuilding the country’s morale.
According to an NBC News poll released
on Tuesday, 73 per cent of voters said
they thought the country was on the
wrong track, and 53 per cent said they
were worried and pessimistic about the
nation's future.
on greater urgency given Mr Trump’s
willingness to shred previous norms.
Charles Michel, president of the Euro-
pean Council of EU leaders, said yester-
day Mr Biden’s arrival marked an
opportunity for the rejuvenation of the
EU-US alliance, but also warned that the
European bloc would “not wait for per-
mission to take its own decisions”.
Ursula von der
Leyen called for
joint action with
Washington on
pandemic response
and climate change
He laid out five priorities for the EU to
pursue with the US: boosting multilat-
eral co-operation, fighting Covid-19,
tackling climate change, boosting
growth and joining forces on security.
“On the first day of his mandate, I
address a solemn proposal to the new US
president: let’s build a new founding
pact,” he said yesterday. “Together, we
must stand as the bedrock of the rules-
based international order, working for
peace, security, prosperity, freedom,
human rights and gender equality.”
3
Washington
Departing
president
snubs his
successor’s
swearing-in
lauren Fedor, Demetri Sevastopulo
and katrina Manson — Washington
Donald Trump is the first outgoing
president in more than a century to
snub his successor’s inauguration.
But dozens of Republican lawmakers,
past and present, led by Mr Trump’s
vice-president, Mike Pence, attended
Joe Biden’s swearing-in, in an apparent
display of bipartisanship just two weeks
to the day after Trump supporters laid
siege to the Capitol.
Mr Trump snubbed the inauguration
and departed Washington with a cere-
mony at Joint Base Andrews, ahead of
flying home to his Mar-a-Lago resort in
Florida. But Mr Pence chose not to
attend his former boss’s farewell. His
team said it was not logistically possible
to attend both events, but he ultimately
decided to pick the inauguration.
Mitch McConnell, the Senate’s top
Republican, joined Mr Biden at mass
ahead of the inauguration, along with
his wife, Elaine Chao, the former trans-
portation secretary who was among the
Trump cabinet members who resigned
over the Capitol attack.
Mr McConnell, who spent much of the
past four years in lock step with Mr
Trump, has also broken with the 45th
president.
On Tuesday, he said Mr Trump had
“provoked” the mob, and has not ruled
out voting to convict him in the forth-
coming impeachment trial.
Many of Mr Trump’s allies, however,
have stuck by his side. They include Jim
Jordan, the Republican House member
whom Mr Trump awarded the Presi-
dential Medal of Freedom earlier this
month. Mr Jordan was at the inaugura-
tion, telling reporters on Capitol Hill it
was “important” for him to attend. Lee
Zeldin, another House Republican and
Trump loyalist, was there, as was Steve
Scalise, the House minority whip,
and Kevin McCarthy, the top House
Republican.
Ted Cruz, the Texas senator who has
attracted ire from both Democrats and
fellow Republicans for his objections to
the certification of Mr Biden’s election,
was also at the swearing-in, as was Josh
Hawley, the Missouri senator who led
the objections in the upper chamber.
Thousands of armed National Guard
troops were present to protect the
peaceful transfer of power in a capital
suffering from a double lockdown due
to coronavirus and security threats. In
30 states, more than 6,000 National
Guard troops were standing watch over
state capital buildings and key infra-
structure as concerns over the threats
have risen.
Several dignitaries on the inaugural
platform were reminders of the riots
inside the US Capitol. Kamala Harris
arrived for her swearing-in as vice-pres-
ident escorted to her seat by Eugene
Goodman, the US Capitol Police officer
who has emerged as a hero for guiding
the mob away from the Senate chamber,
just as Mr Pence was being pulled away
to a secure area.
Just before Amy Klobuchar, the Min-
nesota senator, kicked off the ceremo-
nies, the acting sergeants-at-arms of
both the House and Senate were intro-
duced. Both were new to their jobs and
“acting” because their predecessors
resigned in the wake of the rampage.
Brussels has no intention of slacken-
ing as it seeks to prove the EU is able to
stand on its own feet in an era of multi-
power rivalries, given the bitter divi-
sions that remain in US society.
Mr Michel acknowledged that “Amer-
ica seems to have changed” as have per-
ceptions of the country in Europe.
“Likewise, the way the United States
views the European Union may also
have to change,” he said. “The EU
chooses its course and does not wait for
permission to take its own decisions.”
Ms von der Leyen hailed the chance to
“breathe new life into our cherished alli-
ance” but warned of potential clashes on
the topic of Big Tech regulation. “We
want it laid down clearly that internet
companies take responsibility for the
content they disseminate,” she said.
She added that moves to limit free ex­-
pression, such as Twitter’s block on Mr
Trump’s account, “should be based on
decisions of politicians and parliaments
and not of Silicon Valley managers”. She
proposed a joint trade and technology
council to “create a digital economy rule
book that is valid worldwide”, covering
areas including data protection, privacy
and technical infrastructure security.
4 ★ FINANCIAL TIMES Thursday 21 January 2021

INTERNATIONAL

Vaccination supplies Regulation

Italy threatens legal action against Pfizer Big Tech told

EU states press Brussels to
adopt hard line over cut
in vials being delivered
FT Reporters
A move by BioNTech/Pfizer to reduce
the number of vaccines to European
countries has forced health officials to
slow vaccination plans, with at least one
EU member threatening legal action as
tensions over limited supplies mount.
The manufacturers’ move followed a
ruling this month from the European
Medicines Agency that six doses can be
extracted from each BioNTech/Pfizer
vial rather than five, after health profes-
sionals found there was often extra vac-
cine left over. BioNTech/Pfizer’s con-
tracts with governments are for set
numbers of doses and the companies
have responded to the adjusted guid-
ance by reducing the number of vials
they deliver. Yet to ensure that six doses
are extracted, providers must use a spe-
cial needle; a low dead volume syringe.
Health officials in Europe have
warned this is difficult and the change in
delivery volumes has left them unable
to complete schedules for those first in­-
oculated in December and this month.
The German city of Hamburg said the
change meant it was receiving about 20
per cent less vaccine than before.
“Previously we received six vials for
Pandemic. National response
every 30 doses of vaccine that we
ordered. Now we’re only getting five,”
said Melanie Leonhard, Hamburg’s
health minister. “As a result of this addi-
tional tightening of supply, the situation
for the regions is now even worse.”
The impact of the EMA guidance on
doses per vial has been exacerbated by
another drop in supply caused by
Pfizer’s revamp of its plant in Belgium.
That shortfall is expected to be resolved
later this week, but it has strained rela-
tions with governments.
Italy said a 29 per cent fall in the
number of Pfizer doses it was receiving
was expected to continue beyond this
week. Domenico Arcuri, Italy’s Covid
extraordinary commissioner, said Italy
planned to take legal action against
Pfizer “in the coming days”. “The vacci-
nation campaign cannot be slowed,
especially when it comes to the adminis-
tration of second doses to Italians who
have already received the first,” he said.
Pfizer said: “We will supply to coun-
tries in line with our supply agreements
and the label valid in the country and
will fulfil our supply commitments in
line with our existing agreements,
which are always based on delivery of
doses, not vials.” BioNTech declined to
comment further.
Given EMA guidance, Pfizer thinks it
is only fair to fulfil its contractual obliga-
tions with European countries and use
the remaining doses to supply the devel-
to work with
oping world, said a person familiar with
the matter. The US Food and Drug
Brussels or
Administration and the UK medicines
regulator have both advised that six
face range of
doses can be extracted from each vial.
Pfizer and Brussels on Tuesday dis-
cussed how to ensure countries could
national laws
ex­tract a sixth dose from each vial and
delivery timelines, but some EU states Javier Espinoza — Brussels
want Brussels to take a hard line with
Margrethe Vestager has warned that
Pfizer and other suppliers. The commis-
Big Tech companies will face a flurry of
sion said the agreed delivery of doses
countries passing laws to curb their
“has to be respected by the company”.
power if they do not support the EU’s
Additional reporting by Donato Paulo
approach to regulation.
Mancini and Miles Johnson in Rome,
Michael Peel in Brussels, Guy Chazan in Ms Vestager, who is both the EU’s com-
Berlin, Hannah Kuchler in New York and petition chief and its head of digital pol-
Sarah Neville in London icy, said it was in the interests of the likes
of Google, Facebook and Amazon to
work with Brussels if they want to avoid
“a completely fragmented European
legal system”.
The EU has recently put forward pro-
posals for new legislation that will span

Portugal’s health service wilts in Covid battle
Highest 7-day average of new
infections per 100,000 people
in the world is recorded
Peter Wise — Lisbon
Marta Temido, health minister and one
of the best-known figures of Portugal’s
fight against coronavirus, stood outside
a hospital near Lisbon this week and
made an impassioned plea.
“We are mobilising every health
resource at our disposal,” she said. “But
there is a limit, and people have to know
that we are very close to that limit.”
Her appeal for the country to respect
the rules of a second national lockdown
came as record numbers of new cases
and hospital admissions threatened to
overwhelm a health service struggling
to find more beds and more staff.
After infection rates began soaring
this month, Portugal this week became
the country with the highest seven-day
average of new coronavirus cases per
100,000 inhabitants in the world,
according to Johns Hopkins University.
Health services were coming under
“brutal pressure” and doctors suffering
“burnout and moral anguish” from hav-
ing to make complex and difficult deci-
sions over prioritising patients, said
Miguel Guimarães, head of the Portu-
guese Medical Association, a profes-
sional body representing doctors.
In March and April, Portugal won
international praise for its rapid and
effective response to the first wave of
the virus. But it has since become one of
the European countries hardest hit by a
second wave that took hold in Novem-
ber and has surged to record levels.
António Costa, prime minister, on
Monday warned the number of Cov-
id-19 infections and deaths would rise
this week. “We are living through the
gravest hour of the pandemic,” he said,
after record levels of fatalities on seven
of the previous eight days.
While Portugal has suffered fewer
deaths in total since the start of the pan-
demic relative to its 10.2m population
than other countries — including the
UK, the US, Spain, Italy and France — it
recorded on Monday the third highest
seven-day average of Covid-19 fatalities,
behind the UK and the Czech Republic
(per 100,000 inhabitants). In total, Por-
tugal has recorded 566,958 infections
and 9,246 deaths since March.
Ricardo Mexia, an epidemiologist and
head of an association of public health
New admission: doctors, attributes the recent surge in
an ambulance cases to a “perfect storm” of conditions,
carrying a Covid including a failure to flatten the growth
patient arrives curve of infections sufficiently in the
at Santa Maria autumn, winter respiratory illnesses
hospital, Lisbon. and a cold spell. Psychological factors
Below, workers are also playing a big role, he said, as
help extend an positive messaging around Portugal’s
emergency ward Covid-19 vaccination programme led
at the hospital people to drop their guard.
Pedro Nunes/Reuters;
Health experts criticised the govern-
Armando Franca/AP
ment for relaxing confinement meas-
ures at Christmas too far, lifting travel
restraints and allowing families to
decide for themselves how many house-
holds and people could gather.
“An increase in cases was inevitable
after the holiday and this was not prop-
erly planned for,” said Mr Mexia.
Doctors and nurses across the coun-
try have given dramatic accounts of the
pressures they face. “I saw a colleague
crying after leaving a Covid ward physi-
cally and psychologically exhausted five
hours after her shift should have
ended,” Ricardo Baptista Leite wrote on
social media this week. “As one patient
is stabilised, three or four more patients
needing stabilisation arrive.” Mr
Baptista Leite, health spokesman for the
opposition Social Democrats, volun-
teers as a hospital doctor at weekends.
“We’ve already seen patients being
triaged in lines of ambulances waiting
outside [overcrowded] hospitals,” Mr
Mexia said. Portugal’s track-and-trace
system for identifying chains of infec-
tion was also struggling to cope, he said,
with thousands of people who should be
in isolation not being monitored.
“We haven’t yet reached the kind of
catastrophic collapse [of the health sys-
tem] that we saw in Spain and Italy, but
we are close to it,” said João Gouveia, a
‘An increase doctor who heads Portugal’s intensive
care association. But if infections con-
in cases was tinued rising at the current rate, the
inevitable health service could suffer a similar
breakdown, he said: “The next six or
after the eight weeks will be very tough.”
holiday and The government is telling people to
stay at home. “We succeeded in defeat-
this was not ing the virus in an exemplary fashion
properly during the first wave . . . and now we
have to do it again,” Mr Costa said.
planned for’ Portugal on Friday moved from a
tiered regional system of confinement
to a full national lockdown intended to
mirror the successful restrictions of last
spring. But Mr Costa tightened the
measures on Monday after large num-
bers of people filled parks and strolled
beaches at the weekend. The doctor’s
professional body criticised his govern-
ment for “half measures that serve nei-
ther the health sector nor the economy”.
The government has ruled out closing
schools or universities, which were shut
during the first lockdown. But Mr Costa
told parliament on Tuesday the govern-
ment would consider closing schools if
the fast-spreading variant of the virus
first identified in the UK became domi-
nant in Portugal.
the bloc — the Digital Markets Act and
the Digital Services Act — designed to
create a fairer playing field and make
online platforms more responsible for
the content posted on them.
Senior officials in Brussels want to
“move quickly” to enact the new rules,
after a year in which the Covid-19 pan-
demic has accelerated the shift online.
Some hope the legislation can be in
place in 18 months if the rules can avoid
the years of wrangling that have beset
other recent pieces of tech regulation.
But EU officials are also concerned some
member states are taking unilateral
action because of political pressure to
rein in the tech giants.
“We are worried that countries are
rushing to legislation and will seek to
delay the negotiations so they can estab-
lish the rules of the game ahead of the
commission,” said one person involved
in the process.
France, Germany, Denmark and Aus-
tria have all moved to pass national
laws, and Hungary is reportedly also
considering introducing its own rules.
Big Tech lobbyists have said these
efforts will undermine the EU’s
attempts to have a single set of pan-Eu-
ropean rules. But Ms Vestager said she
saw the national efforts as encouraging.
“I think that is really a very strong
argument to say to the platforms: ‘Well,
you either have this or you would have a
completely fragmented European legal
system’.” She added: “[EU legislation]
may be strict . . . but at least it has pan-
European scale.”
She said regulators had taken a long
time to rein in Big Tech because officials
were initially in awe of the companies.
“Until quite recently, we were basi-
cally very impressed. These giants have
also brought a number of very impor-
tant innovations to our digital economy.
. . . It has taken some time because we
needed the wake-up call of the Cam-
bridge Analytica scandal, of the differ-
ent antitrust cases, to see that this is sys-
temic.”
Meanwhile, the European parliament
is considering sanctions against Big
Tech companies after it emerged their
chief executives may not attend a key
hearing scheduled for next month,
according to people familiar with the
discussions.
MEPs are finalising an official invita-
tion to the four largest platforms —
Google, Amazon, Facebook and Apple —
to attend a virtual hearing to discuss tax
and competition policy. However, Jeff
Bezos and Tim Cook, chief executives of
Amazon and Apple respectively, are
unlikely to attend, people with direct
knowledge of the matter said.
Apple, Amazon, Facebook and Google
all declined to comment.

Control measures Pro-democracy movement

China escalates fight against latest outbreak
Tom Mitchell — Singapore
Chinese authorities have intensified
their battle against a new wave of coro-
navirus cases — and a blame game with
the US — in an effort to suppress a series
of outbreaks in and around Beijing.
Officials said yesterday they would
check on anyone who had entered the
Chinese capital since December 10 and
tightened control measures in two dis-
tricts of the city.
Authorities have been spooked by an
outbreak in Hebei province, which sur-
rounds the capital, the country’s worst
since last spring. Of the 88 locally trans-
mitted cases confirmed in China on
Tuesday, 19 were found in Hebei and six
in a Beijing district that borders the
province, triggering mass testing and
targeted lockdowns in the capital.
Officials have also restricted move-
ment in and out of Shunyi, an area
where the city’s main airport is located.
The deteriorating situation comes a
year after the virus first emerged in the
central city of Wuhan and just weeks
before the annual Chinese new year hol-
iday, when hundreds of millions of peo-
ple criss-cross the country. But Chinese
officials have contested most experts’
assertion that the virus originated in or
near Wuhan, where World Health
Organization experts are investigating
the roots of the pandemic.
The hottest topic on Chinese social
media yesterday was “Fort Detrick”, a
military facility in Maryland where the
US army conducts germ research. Hua
Chunying, China’s chief foreign ministry
spokesperson, has said Fort Detrick
should be investigated as a possible
source of the pandemic.
Some Chinese officials have previ-
ously peddled unproven conspiracy
theories that coronavirus was
“imported” into Wuhan by members of
a US military team that competed in a
sports event there in 2019.
Ms Hua and other Chinese officials
have been repeatedly enraged by the
Trump administration’s suggestions
coronavirus may have escaped from a
Chinese research facility in Wuhan. The
US state department said last week it
had “reason to believe” several
researchers at the Wuhan Institute of
Virology came down with “symptoms
consistent with both Covid-19 and com-
mon seasonal illnesses” in late 2019.
Chinese state media outlets have also
tried to sow doubts about the efficacy of
western Covid-19 vaccines in an effort to
counter what they say is biased foreign
criticism of China’s vaccine develop-
ment programme.
Joe Biden’s incoming administration
is not expected to escalate the war of
words with China over the origins of
coronavirus. The president-elect has
also pledged to reverse Donald Trump’s
decision to withdraw from the WHO.
But the Trump administration has
enacted a late series of sanctions target-
ing Chinese officials and companies that
Mr Biden is unlikely to unwind, given
broad bipartisan support for a tougher
approach to Beijing.
Mike Pompeo, US secretary of state,
said the US government considered Chi-
nese repression of Muslim Uighurs in
the region of Xinjiang to be “genocide”.
Antony Blinken, Mr Biden’s nominee to
be secretary of state, told a Senate con-
firmation hearing that he agreed.
Additional reporting by Xueqiao Wang in
Shanghai
‘Mercenary’ UK lawyer quits Hong Kong trial
Primrose Riordan — Hong Kong
David Perry, the British lawyer who
was hired by the Hong Kong govern-
ment to prosecute a group of pro-
democracy activists, has stepped down
following withering criticism from the
UK government.
Dominic Raab, the foreign secretary and
a former human rights lawyer, had
labelled the barrister a “mercenary”,
adding he was unable to understand
how anyone could take on the case “in
good conscience”.
Mr Perry was hired by Hong Kong
authorities to prosecute a group of vet-
eran activists including Jimmy Lai, the
media mogul, and Martin Lee, who
helped write the territory’s mini-consti-
tution governing its handover from Brit-
ish to Chinese rule in 1997. The trial was
set to begin on February 16.
The Hong Kong justice department
said yesterday: “Mr Perry QC expressed
concerns about such pressures and the
exemption of quarantine, and indicated
that the trial should proceed without
him. In light of the public interest
involved and the imminent trial date,
the [Department of Justice] has
instructed another counsel to prosecute
the trial as scheduled.”
Beijing imposed a national security
law on Hong Kong last year following
pro-democracy protests in the city in
2019. Critics say the harsh new meas-
ures have threatened the city’s inde-
pendent judiciary and its status as a
David Perry has
been heavily
criticised for his
role in prosecuting
pro-democracy
activists
financial hub. Hong Kong authorities
have used the law to crack down on the
opposition, arresting pro-democracy
lawmakers and detaining at least 53
activists in a raid this month.
Albert Ho, part of the group on trial,
had called Mr Perry’s participation
“shameful”. The group was accused of
organising unlawful assemblies during
the protests. “The Hong Kong govern-
ment should be more aware of the inter-
national concern over the matter,” Mr
Ho told the Financial Times as he wel-
comed the resignation.
Mr Lee, 82, has been dubbed Hong
Kong’s “father of democracy” after
helping to write the legal framework
that has underpinned the territory’s
governance. He said he was “proud” to
be a defendant in the case.
The 73-year-old Mr Lai’s campaigning
pro-democracy tabloid, Apple Daily,
has long irritated local authorities. Mr
Lai’s lawyers did not immediately
respond to a request for comment.
Allies of Mr Perry said he was acting
under the “cab rank” principle,
whereby barristers take cases as they
come up. Other lawyers, however, have
argued the principle did not apply when
accepting overseas cases.
Mr Raab told the BBC at the weekend
a barrister could resist such a case
“under the bar code of ethics”.
He added: “From Beijing’s point of
view, this would be a serious PR coup.”
CY Leung, Hong Kong’s former chief
executive from 2012-17, said the pres-
sure on Mr Perry was “naked political
intervention” from the UK.
Additional reporting by Nicolle Liu
Thursday 21 January 2021 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Thursday 21 January 2021

INTERNATIONAL

Immunisation

Low-income countries trail in global vaccines race

‘Catastrophic supply’
problems for less well-off
nations create risk for all
Jonathan Wheatley — London
Inadequate supplies of Covid-19 vac-
cines for lower-income countries mean
it could take years to inoculate some
parts of the world, undermining global
efforts to end the pandemic.
Desperate to vaccinate their popula-
tions against Covid-19, high-income
nations, home to about 1bn people, have
secured 4.2bn doses, approximately 74
per cent of total government orders,
according to the latest weekly data com-
piled by the Global Health Innovation
Center at Duke University of North
Carolina. In contrast, lower-middle and
low-income countries have secured
orders for just 675m doses.
The shortfall means that while the UK
aims to offer coronavirus vaccinations
to all adults in Britain by September, in
many parts of the world it could take as
long as three years to inoculate the pop-
ulation during which time the virus will
continue to circulate, experts have
warned.
“We have a catastrophic supply prob-
lem [in low-income countries],” said
Anna Marriott, health policy manager
at Oxfam GB. “The longer the virus is
able to travel the world, the greater the
risk of mutations and the greater the
risk that the vaccines we do have will
become ineffective.”
Many low and lower-middle-income
countries had planned to rely on the
WHO-backed Covax facility, set up last
year with Gavi, an alliance of vaccine
partners, and the Coalition for Epidemic
Preparedness Innovations, a foundation
that takes donations to fund independ-
ent vaccine research.
The programme aimed to ensure the
equitable, worldwide distribution of
2bn Covid-19 vaccine doses by the end of
2021. Poorer countries would get doses
for free and no country would vaccinate
more than 20 per cent of its population
before every country had been given the
same opportunity. But Covax has strug-
gled to mobilise the support needed
from wealthy nations to subsidise the
initiative.
“It’s not right that younger, healthier
adults in rich countries are vaccinated
before health workers and older people
in poorer countries,” Tedros Adhanom
Ghebreyesus, head of the World Health
Organization, said this week in a searing
critique of rich countries and their
response to the coronavirus pandemic.
Aurélia Nguyen of Gavi told the
Financial Times that Covax had “line of
sight” on 1.97bn vaccination doses and
was on track to meet its goal of fair and
equitable access to vaccines for develop-
ing countries. However, she declined to
say how many doses would be delivered
this year. This would depend on produc-
tion volumes and on regulatory
approval in each country where vac-
cines will be used, she said.
The uncertainty over Covax has
forced developing economies and
regional blocs such as the African Union
into the commercial market to compete
for their own supplies.
“The global situation we’re in is that
we’re having to do what rich countries
did earlier, hedging our bets with multi-
ple bilateral [deals],” said Fatima Has-
san, founder of Health Justice Initiative,
a South African group seeking equitable
access to vaccines.
“The company plays god,” Ms Hassan
said of the vaccine manufacturers and
the non-disclosure agreements that
govern sales and mean that pricing
information and supply volumes have
remained closely guarded.
Kate Elder, senior vaccines policy
adviser at Médecins Sans Frontières,
said that low-income countries faced
“an artificially induced supply con-
straint”, explaining that a more collabo-
rative approach to intellectual property
could have made it easier for supplies of
successful vaccines to be ramped up by
other manufacturers.
Additional reporting from Joseph Cotterill
in Johannesburg, Michael Stott in London,
Michael Peel in Brussels and Andres
Schipani in Nairobi

Africa. Presidential election Thailand

Uganda veteran
leader in no mood
to stand down
Detractors compare Museveni
to other aged autocrats as his
sixth term in office begins
Andres Schipani — Nairobi
David Pilling — London
When Yoweri Museveni was first sworn
in as Uganda’s president in January
1986, he was already looking to the
future — his own. “Nobody is to think
that what is happening today . . . is a
mere change of guards,” the bush fight-
er-turned-president said.
Fast forward 35 years and history has
proved him right. Despite his promise
not to stay in power too long, there has
been no change of guard ever since. On
Saturday, Uganda’s electoral commis-
sion declared that Mr Museveni, 76, had
won a sixth term in office, although his
main opponent, rap singer Bobi Wine,
said the results were rigged and he
would have won a fair contest.
“Museveni after committing the most
vile election fraud in history, has
resorted to the most despicable forms of
intimidation,” Mr Wine tweeted, after
the internet was restored on Monday,
following a government-ordered shut-
down last week. He remains under
house arrest in Kampala.
Initially lauded as one of a new gener-
ation of African leaders, detractors
increasingly compare Mr Museveni
with other aged autocrats such as Teo-
doro Obiang in Equatorial Guinea or the
late Robert Mugabe in Zimbabwe.
With no succession plan in place, the
president appears to have convinced
himself he remains indispensable to his
country’s future. “There are not many
things in the world that I don’t know,” he
said in an interview with the UK’s Chan-
nel 4 News last week. “Uganda is very
successful. We are a very strong system
because we know what we are doing.”
Less ideological than some freedom
fighters, such as Mugabe, Mr Museveni
was quick to embrace a mixed-economy
model that has seen output increase 10-
fold during his tenure and helped keep
foreign assistance flowing in. He invited
back Indian entrepreneurs previously
driven out by Idi Amin, a dictator, and
restored a modicum of stability sorely
lacking in the tumultuous decades fol-
lowing Uganda’s independence in 1962.
In his early years, Mr Museveni also
won praise for his openness about Aids
and for bringing the epidemic under
control. But while he has regularly held
elections to bolster his supposed demo-
cratic credentials, political contests
have become increasingly violent.
Western powers, though disen-
chanted with his use of coercion to
maintain power, have begrudgingly
treated him as a force for regional stabil-
ity. Uganda has run a generous refugee
policy and has supplied peacekeepers to
regional hotspots, including Somalia.
The IMF says more than 12 per cent of
Uganda’s government spending comes
from foreign grants and financing. “The
country as a whole does rely heavily on
development partner financing for a
number of infrastructure projects,
social services, and credit for capital
investment,” said Priya Manwaring,
Uganda economist with the Interna-
tional Growth Centre in Kampala.
Although Mr Museveni has continued
to milk foreign aid and military assist-
ance, he has repeatedly derided foreign-
ers for what he alleges is meddling in his
country’s internal affairs and more
recently criticised them for allegedly
backing Mr Wine.
On Tuesday, Uganda accused the US
of subversion after its envoy tried to
visit Mr Wine. “[They think] the prob-
lem with Uganda is because I’ve been in
the government for a long time,” Mr
Museveni told Channel 4. “That’s our
advantage. So we don’t agree.”
Livingstone Sewanyana of Uganda’s
Foundation for Human Rights Initia-
tive said Mr Museveni had convinced
himself Uganda would fall apart without
him. “He doesn’t seem to believe in suc-
cession; he doesn’t believe in
change,” he said. “He doesn’t
believe in democratic means. It is
all about him.”
Frederick Golooba-Mutebi, a
Kampala-based political scientist,
said Mr Museveni’s longevity threat-
Thumbs up: ened to undermine his achievements.
Museveni “He has unified the country, to some
supporters extent, but the longer he stays around,
in Kampala the more the country seems to be frac-
celebrate his turing.”
victory over In a weekend press conference, held
Bobi Wine, from his home, which was surrounded
below by Mr Museveni’s troops, Mr Wine
Abubaker Lubowa/Reuters
called on western donors to review their
assistance to Uganda. A senior diplomat
from the US, which provides almost
$1bn in aid a year to Uganda, acknowl-
edged the dilemma of assisting an auto-
cratic, if useful, regime. “He should have
already bowed out gracefully a while
ago,” he said.
There are few obvious signs Mr
Museveni’s grip is loosening. Oppo-
nents say he holds sway over
the courts as well as the secu-
rity forces. They accuse his
government of both corrup-
tion and nepotism; his wife,
son and brother occupy
high positions in the
administration. Mr
‘He should Museveni has acknowledged the frus-
tration of youth, many of whom backed
have Mr Wine, although he has cautioned
bowed out against any attempt at a Sudan-style
uprising. “Anybody who brings violence
gracefully a will be defeated,” he warned.
while ago’ Mr Museveni has said he still has a
mission to complete, but will discuss
US diplomat succession plans when the time is right.
Mr Golooba-Mutebi said that was
unlikely. “Officially there is no such
thing as a succession plan that anyone
knows of,” he said, adding if Mr Musev-
eni were to die suddenly infighting
would follow.
Mr Museveni said at the weekend he
would rule not in the interests of the
elites or foreigners but in the interests of
the Ugandan people. Supporters, who
poured on to the streets wearing the yel-
low colours of the president’s party,
seemed to agree. Mr Wine, for one, did
not. “He’s a dictator because he has been
in power for 35 years,” he told the Finan-
cial Times. “He believes that he’s sup-
posed to be president for life.”
Opposition
chief faces
charge for
criticising king
John Reed — Bangkok
Thailand will charge the country’s
leading opposition figure under its
harsh lèse majesté law after he accused
a company owned by King Maha Vaji-
ralongkorn of seeking to profit from
distributing the Oxford/AstraZeneca
coronavirus vaccine.
The move against Thanathorn Juan-
groongruangkit comes as Prime Minis-
ter Prayuth Chan-ocha’s government
attempts to silence criticism of Thai-
land’s billionaire monarch by opening
cases under the law, which carries a
maximum 15-year prison term, against
dozens of supporters of a six-month-old
democracy movement.
Thailand’s digital affairs ministry said
yesterday the government had also
asked police to charge Mr Thanathorn,
who has faced multiple criminal charges
since entering politics in 2018, under
the “computer-related crimes” act.
In an interview with the Financial
Times, Mr Thanathorn, leader of the
Progressive Movement, said giving Siam
Bioscience exclusive rights to distribute
the Oxford/AstraZeneca vaccine was
“an attempt to shore up the popularity
of the monarchy” and that “the vaccine
was not given by the king”.
The Thai company is 100 per cent
owned by the Crown Property Bureau,
which manages the king’s wealth port-
folio, estimated to be worth in excess of
$40bn. The politician first aired the
accusations in a Facebook Live presen-
tation on Monday about what he called
the “royal vaccine”.
“The Prayuth government pays for
the vaccine using taxpayer money,” Mr
Thanathorn told the FT before news
emerged that he would be charged.
A government spokesman referred
the FT to remarks by Anutin Charnvi-
rakul, Thailand’s health minister and
deputy prime minister, who rejected Mr
Thanathorn’s criticism, saying: “Vac-
cines are an important issue in this
emergency situation, and should not be
made a political issue.”
After successfully reining in Covid-19
last year, Thailand is trying to contain a
new wave of infections that has added
pressure to speed of the vaccine rollout.

Consumer prices Vote of confidence

India shoppers bear brunt of inflation paradox during crisis
Benjamin Parkin — Mumbai
Along a lane in a Mumbai neighbour-
hood lined with chai stalls and vegeta-
ble carts, visitors usually have to dodge
commuters, motorcycles and even ani-
mals to shop. But now, like so many
streets in India, it is unsettlingly quiet.
Vijay Kotian, a 35-year-old selling vege-
tables, fruit and pulses from his road-
side perch, faced a paradox. There were
fewer buyers for his fare, but prices were
higher. “Customers are getting angry
because prices are increasing from Rs20
to Rs40 to Rs50,” he said, citing toma-
toes as an example. “They ask why I’m
increasing my prices. But it’s not me.”
Mr Kotian’s predicament encapsu-
lates a challenge for India since the coro-
navirus pandemic struck in March:
stubbornly high inflation despite a huge
economic contraction.
Retail inflation remained above the
Reserve Bank of India’s mandated target
of 6 per cent for eight months from
April, soon after the country entered a
months-long lockdown. It touched a six-
year high of 7.6 per cent in October.
The consumer price index finally fell
within the RBI’s target at 4.6 per cent in
December, thanks partly to a drop in
vegetable prices, providing some respite
to low-income shoppers struggling to fill
shopping bags and politicians fearful of
popular outrage.
But economists have warned that
India, which for years has struggled with
runaway price increases, must balance
the urgent need to revive growth with
keeping food, transport and commodi-
ties prices under control.
“The key question that comes with
inflation is: is this a return to the dark
ages or are these passing dark clouds?”
said Aurodeep Nandi, an economist at
Nomura.
High inflation has long been a source
of concern to Indian authorities as
demand from the fast-expanding econ-
omy and population exacerbated goods
shortages. After years of mixed
responses, the central bank in 2016
adopted an inflation-targeting mandate
to try to manage the imbalance.
The drop in food inflation in Decem-
ber partly reflected the patching up of
supply chains that were upended by
India’s strict lockdown, which limited
the availability of transport and labour.
But other measures of inflation have
showed signs of pressure that predate
the pandemic, picking up after several
years of comparatively tame price rises.
Core inflation, which excludes food and
fuel, remained stubbornly high last
month at 5.6 per cent, compared with
5.8 per cent in November, according to
brokerage Edelweiss.
That continued even after the lock-
down brought growth to a halt. India’s
Steadily rising
food prices have
left some Indian
politicians fearful
of a backlash
from the public
economy is expected to shrink more
than 10 per cent in the year ended
March, according to the IMF. The coun-
try has recorded more than 10m coro-
navirus cases, the world’s second-high-
est tally, and more than 150,000 deaths.
Anxiety over inflation has prevented
the Reserve Bank of India from cutting
interest rates since May, and many
economists expect it to continue hold-
ing off in the months to come — due
partly to accelerating commodity
prices.
The economy has shown signs of
improvement from its lows last year,
with indicators including manufactur-
ing, railway traffic and tractor sales
picking up.
Inflation in other areas continues to
cause problems. Many carmakers, such
as Maruti Suzuki, India’s largest, raised
vehicle prices this month citing, in part,
high commodity prices. A survey of
manufacturers by IHS Markit in
December found that inflation in input
costs, such as materials and labour, had
risen to the highest level in two years.
All the while, India’s economic recov-
ery remains tentative. Industrial pro-
duction in November dropped 1.9 per
cent, according to data released this
month.Even as Covid-19 infections have
dropped from nearly 100,000 a day in
September to fewer than 20,000, some
economists fear a resurgence in cases
could hamper the turnround.
For Vinod Prasad, a 57-year-old ven-
dor selling towels in Mumbai, inflation
remains a worry, with prices about 20
per cent higher than before the lock-
down. And there were few signs of an
economic revival. On one recent
evening, he had yet to make a single sale
for the day. “No one comes,” he said.
Additional reporting by Andrea Rodrigues
See Editorial Comment
Italy’s prime minister tries
to shore up fragile coalition
Miles Johnson — Rome
Italy’s prime minister has said he will
attempt to reinforce his fragile coali-
tion government after being left with-
out a working majority as the country
grapples with twin health and eco-
nomic crises.
Giuseppe Conte narrowly survived a
vote of confidence in Italy’s upper house
on Tuesday evening that had been trig-
gered by the exit of Matteo Renzi’s small
Italia Viva party from his coalition in
protest at the country’s response to the
Covid-19 pandemic.
“Now the goal is to make this majority
even more solid,” Mr Conte said on
Twitter after winning the vote. “Italy
doesn’t have a minute to lose. We must
immediately get to work to overcome
the health emergency and the economic
crisis.”
While Mr Conte gained enough sup-
port to win the vote, he failed to achieve
an outright majority and scraped
through as a result of Mr Renzi’s deci-
sion to abstain, some defections from
rivals and the support of some life sena-
tors. Mr Conte won 156 out of 296 votes
in the Senate on Tuesday, short of the
161 senators he would need for an abso-
lute majority, but enough to
pass because of 16 abstentions.
If he had lost the Senate vote, Mr
Conte would have been forced to hand
in his resignation to the president, Ser-
gio Mattarella, plunging Italy into a full-
blown political crisis.
Italian media reported yesterday Mr
Conte had immediately got to work in
trying to convince some senators who
did not vote for him on Tuesday to
pledge their support to him.
Without a majority in the upper
house, he will be unable to pass mean-
ingful legislation, including annual
budgets, without the backing of law-
makers outside the government.
“He risks being a lame-duck prime
minister from now on,” said Francesco
Galietti, founder of the risk consultancy
Policy Sonar.
“Conte will try to make it look like a
victory, but the whole house of cards
could easily collapse further down the
line,” Mr Galietti said.
Thursday 21 January 2021 ★ FINANCIAL TIMES 7

Systemic nerves Political leaders, central banks and regulators must act to prevent another financial crisis y MARKETS INSIGHT, PAGE 11

Busy traders Ma appears Alibaba stock rises after first public

sighting of billionaire since Ant’s cancelled IPO
BioNTech
jab found to
lead Morgan work against
Covid variant
Stanley to Joe Miller — Frankfurt
Hannah Kuchler — New York
Clive Cookson — London

record year
3 Quarterly earnings show rise of 51%
3 Share repurchases poised to resume
Laura Noonan — New York
Morgan Stanley’s earnings rose 51 per
cent in the final three months of the
year, sending profits to a record annual
high and capping a strong Wall Street
results season driven by a trading and
fundraising boom.
The US bank, which has been invest-
ing heavily in its wealth and investment
management divisions, posted net
income of $3.39bn in the fourth quarter
versus $2.24bn a year earlier.
Earnings per share for the three
months, at $1.81, were higher than the
$1.25 projected by analysts in a Bloom­-
berg poll. Revenues beat expectations,
hitting $13.6bn. Annual profits came in
at $11bn, topping the $9bn record set
last year.
‘We saw exceptional
support from central
banks and strong fiscal
policy supports’
“It was a combination [of the firm and
the environment],” said Jon Pruzan,
chief financial officer. “We saw excep-
tional support from central banks and
strong fiscal policy supports during the
health crisis . . . We supported our cli-
ents and were extraordinarily active,
and very disciplined around our risk.”
The results clear the way for Morgan
Stanley to spend about $2bn buying
back its shares in the first quarter, in line
with a cap announced by the Federal
Reserve in December.
James Gorman, chief executive, told
analysts that Morgan Stanley would
resume share repurchases this month
and planned to raise its quarterly divi-
dend once the Fed permitted. “There
aren’t enough things we can invest in [to
get the returns we would like].”
In the past two years, Mr Gorman has
agreed the $13bn acquisition of broker-
age ETrade and a $7bn deal to buy
investment manager Eaton Vance.
Morgan Stanley’s investment bank
was the standout performer in the quar-
ter, with sales and trading revenues ris-
ing 32 per cent year on year as clients
repositioned portfolios amid volatility.
That included a 31 per cent increase in
fixed-income revenues, far better than
the other big US banks, led by a 15 per
cent rise at JPMorgan Chase.
Morgan Stanley’s increase of 30 per
cent in equities trading was lower than
the jumps at Goldman Sachs, Citigroup
and JPMorgan.
Morgan Stanley posted the biggest
gain of its peers in investment banking,
with a 46 per cent surge in fourth-
quarter revenues versus a year earlier
amid a resurgence in dealmaking in the
second half.
“We enter 2021 in probably the best
position we’ve been in over a decade in
terms of open, active and constructive
markets, very engaged institutional and
retail clients; the brand is in great shape
and we have nice momentum,” Mr
­Pruzan said.
Wealth management, which Morgan
Stanley is expanding through acquisi-
tion of ETrade, increased revenues 24
per cent year on year, to $5.7bn. That
division’s net profits fell 5 per cent year
on year as it absorbed the cost of inte-
grating ETrade.
Executives said that the integration
was going well and reiterated plans
for a margin in wealth management
of more than 30 per cent over the
medium term.
In its annual strategic update, Morgan
Stanley marginally increased its targets
for return on tangible equity to more
than 17 per cent, versus a previous tar-
get of 15 per cent to 17 per cent.
“Our firm is at an inflection point and
the next decade will be characterised by
growth,” Mr Gorman said.
Jack Ma, seen in a recording of the livestream event, says he is focusing on education and welfare — Justin Chin/Bloomberg
Ryan McMorrow — Beijing
Tom Mitchell — Singapore
Jack Ma has resurfaced in a video
praising China’s teachers, marking
the first time the billionaire has been
seen in public since Ant Group’s
planned $37bn initial public offering
was halted nearly three months ago.
The Chinese tech entrepreneur and
founder of ecommerce group Alibaba
dropped out of public view after criti-
cising the country’s regulators and
state-owned banks in late October,
prompting speculation over his
whereabouts.
Following the comments, officials
gave Mr Ma a dressing-down and reg-
ulators halted the IPO of Ant, the pay-
ments group he controls, which was
set to be the world’s largest.
Alibaba’s Hong Kong-traded shares
rose more than 8 per cent after the
video emerged yesterday.
“My colleagues and I have been
studying and thinking, and we have
become more determined to devote
ourselves to education and public
welfare,” said Mr Ma, according to a
transcript of his remarks posted on a
news portal backed by the govern-
ment of China’s Zhejiang province,
where Alibaba is based.
But in a sign of the continued regu-
latory scrutiny of Mr Ma’s business
empire, later yesterday China pro-
posed new stricter rules for payments
businesses, Ant’s main business
driver. The draft rules from China’s
central bank called for tighter control
of users’ payments data while also set-
ting the stage for possible antitrust
action against Ant and Tencent,
which runs WeChat Pay. Regulators
would be empowered to break up pay-
ments groups abusing their market
position.
Ke Yan, an equity analyst at DZT
Research in Singapore, said: “For the
market, it’s a good signal that Jack is
The Covid-19 vaccine developed by
BioNTech and Pfizer is likely to be
effective against a rapidly spreading
strain of the virus that was first discov-
ered in the UK, a laboratory-based
study by the companies has shown.
The variant, known as B.1.1.7, has a high
number of mutations, which has led to
concerns that it could bypass the
immune defences built up by vaccines
being rolled out worldwide, a large pro-
portion of which have been made by
BioNTech and Pfizer.
However, researchers at BioNTech’s
headquarters in Mainz found that a test-
tube version of the virus carrying all the
new strain’s mutations was neutralised
by antibodies in the blood of 16 patients
who had received the vaccine in previ-
ous trials, half of whom were over
55 years old.
In a paper that has yet to be peer-
reviewed, the companies said there was
“no biologically significant difference in
neutralisation activity” between the
results of the lab tests on surrogate ver-
sions of the original strain of the corona-
virus, sequenced in China last January,
and the new variant.
But the authors warned that the
“ongoing evolution of Sars-Cov-2 neces-
sitated continuous monitoring of the
significance of changes for maintained
protection by currently authorised vac-
still alive and kicking.” He said the cines”.
video reassured foreign investors over The test is the first of its kind to be
worst-case scenarios, such as a possi- completed by a major vaccine maker, as
ble nationalisation of Alibaba or Mr companies rush to check their jabs hold
Ma’s permanent disappearance. up against the new variant.
Mr Ma’s video came as Alibaba Pfizer and researchers at the Univer-
faces an antitrust investigation that sity of Texas had already checked it
has hit its shares, and the tech group against one of the most worrying
tries to raise billions of dollars in a changes in the new variant that
bond offering. emerged in the UK and South Africa, in
The antitrust probe was announced a laboratory study published earlier this
on December 24, just weeks after the month.
Chinese Communist party’s politburo Moderna and Oxford/AstraZeneca,
said it would crack down on monop- which are both in the process of testing
oly abuses and the “disorderly expan- their vaccines, have previously said they
sion of capital”. expected their jabs to protect against
During Mr Ma’s almost three- B.1.1.7.
month absence from public view, Even if vaccines still work well against
rumours swirled that he might have the current variants, vaccine makers
left China. In the video, a smiling Mr and regulators are starting to prepare
Ma did not address his whereabouts. for the virus to mutate further.
Alibaba did not immediately respond If vaccines become significantly less
to a question on his location. effective, the companies will need to
Additional reporting by Nian Liu adapt their formulations and manufac-
See Lex ture new batches.

Political tension overshadows vital Air France-KLM fundraising
than apart. While there has been
inside business progress on collaboration, the group
needs to go further if it is to compete
europe successfully when the market recovers,
and the likes of Ryanair and Wizz Air
Peggy are gunning for market share.
Right now, Air France-KLM is strug-
Hollinger gling with a balance sheet that cannot
bear the weight of €10.4bn in loans
backed by the French and Dutch gov-
ernments to help it through the pan-
demic. While there is no immediate
Legal Notices
KLM’s chief executive Pieter Elbers.
Insiders say the two are barely on speak-
ing terms. The Dutch government’s sub-
sequent acquisition of 14 per cent of Air
France-KLM, balancing the French
state’s 14.3 per cent, was regarded as
hostile by Paris.
That said, the Covid crisis may be
changing mindsets. One condition of the
French bailout was that Air France close
down lossmaking routes and parts of its
domestic network, Hop. Had Air France

F
rance is often criticised for its
heavy-handed approach to
cross-border industrial collab-
oration. Remember the ten-
sions unleashed in the
Renault-Nissan alliance when Paris
pushed for a merger of the carmakers,
knowing that Japan was strongly
opposed? Or the battles between France
and Germany for control of Airbus, the
Franco-German aircraft maker?
Now it is the turn of Air France-KLM,
the airline created in 2004 by the so-
called merger of France’s flag carrier
with the Netherlands’ own champion.
But this time, it is not only French
interference that is creating friction
ahead of a vital fundraising — and possi-
bly jeopardising the future of Europe’s
first aviation alliance. It is also the illu-
sion perpetuated by Dutch politicians
and KLM’s management that the carrier
is still an independent entity, despite
having sold itself to Air France nearly
two decades ago.
For that is what KLM did when it
agreed to create what was then the
world’s biggest airline by revenue. At
the time, Air France was not only bigger
but healthier than KLM.
True, there were many safeguards
built into the agreement that still give
KLM some independence. But both air-
lines knew then — and should know now
— that their fortunes are better together
need for cash, a big capital increase is
required to cope with this debt burden.
But fundraising discussions must first
overcome deeply embedded Dutch sus-
picions about the French state, which
not illogically wants greater integration
of the airline to improve competitive-
ness. The Dutch government, perhaps
also understandably, wants to ensure
that not a penny of
Dutch taxpayers’ French and Dutch
money goes to Air
France. Unlike ministers have crossed
KLM, it has con- swords too often to find
sistently failed to
tackle the labour an easy path back to
costs that have collaboration
weighed on its
profitability.
This is not a new problem. Tensions
have been bubbling for years. While
KLM benefited hugely from the alliance,
a failure to restructure Air France — and
violent protests over various attempts —
have made the Dutch wary. Complicat-
ing matters, the independence of KLM
— a symbol of the Netherland’s heft in
the global economy — is as much a polit-
ical issue as a corporate one.
Air France-KLM’s appointment in
2018 of a non-French chief executive
Ben Smith, formerly of Air Canada,
should have improved matters. Instead,
he trampled on Dutch sensitivities by
attempting to assert his authority over
done this without government sanction
it might have been far more difficult,
analysts suggest.
And the mass resignation of the Dutch
government last week could also be pos-
itive. French and Dutch finance minis-
ters have crossed swords too often to
find an easy path back to collaboration.
A change of guard might help —
although the Dutch finance minister, as
Businesses For Sale
head of one of the country’s biggest par-
ties, is likely to retain influence.
In an ideal world, both governments
would let management find the best
way to extract efficiencies. But yielding
power in an iconic company is not a
good idea ahead of an election. Nor is it
likely to be a new government’s first act.
So, in the absence of disposals, the
way forward is in delivering a competi-
tive Air France. When it is not seen as a
deadweight by the Dutch, there will be
Business for Sale, Business Opportunities, Business Services,
more incentive for further integration. Business Wanted, Franchises
But the Dutch must also stop imagin- Runs Daily
ing that the partnership with Air France .........................................................................................................................................................................................................................................................................
Classified Business Advertising
is temporary. When the Dutch finance
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
minister suggested late last year that the
alliance did not have to last forever, he
might have scored some political points. Notice to Advertisers
But for Air France-KLM and its 86,000 Calls to the Financial Times Advertising Department may be monitored.
employees, he was only further desta-
bilising a partnership that could be Acceptance of any advertisement for publication will be subject to the then current terms and conditions of insertion
of advertisements in FT publications.
delivering so much more.
A copy of the terms and conditions of insertion of advertisements in FT publications can be obtained from
peggy.hollinger@ft.com +44 (0)20 7873 3000, or viewed at www.FT.com/advertising
8 ★
Remuneration
UK chiefs share pain by losing bonuses
Last year’s results reveal
widespread restraint but
investors await ‘acid test’
Daniel Thomas and
Attracta Mooney — London
More than half the chief executives of
UK companies that have reported 2020
figures so far received no bonus, as
boards moved to counter investor criti-
cism that bosses profited while busi-
nesses were hit by the pandemic.
Annual bonuses of the 45 companies
that reported in the second half of 2020
were significantly lower than the previ-
ous year, according to an analysis by
Deloitte. More than half paid no
bonuses at all, while salary and pension
Airlines
BA owner
to acquire
Air Europa in
cut-price deal
Philip Georgiadis — London
Alice Woodhouse — Hong Kong
International Airlines Group, owner of
British Airways and Iberia, is to buy
Spain’s Air Europa for a cut-price
€500m.
The airline will pay half the original sum
of €1bn, which will be deferred for six
years after the deal’s completion.
The original cash deal in 2019 was
agreed three months before the pan-
demic ripped through the industry. It
offers IAG the chance, once the industry
recovers, to open up the South Ameri-
can transatlantic market and turn
Madrid into Europe’s next hub airport,
attracting more passengers by provid-
ing global connections.
“I am pleased that we have reached
agreement with Globalia [Air Europa’s
owner] to defer payment until well into
the expected recovery in air travel fol-
lowing the end of the pandemic,” said
IAG chief executive Luis Gallego.
The original deal was the final act in
IAG’s near decade of expansion under
former boss Willie Walsh, who left the
conglomerate last year to be replaced by
Mr Gallego.
Mr Gallego, the former chief execu-
tive of Iberia, spent six months renegoti-
ating the deal with Globalia after inher-
iting a drastically different landscape
from that of Mr Walsh.
The airline group reported an operat-
ing loss of €5.95bn in the first nine
months of 2020, and has had to tap
shareholders for €2.75bn to help it cope
with the losses.
IAG said the acquisition of Air Europa
remained strategically important,
allowing the group to benefit from
growth opportunities once the industry
emerged from the health crisis.
The deal was expected to be com-
pleted in the second half of 2021, “at a
time when air travel recovery could be
meaningful as the rollout of Covid-19
vaccines proceeds worldwide”, IAG said.
Air Europa will join IAG’s stable,
which includes Ireland’s Aer Lingus and
low-cost carriers Vueling and Level.
Air Europa has a fleet of 52 aircraft,
down from 68 in 2019. It runs domestic
flights in Spain as well as European
routes and long-haul destinations in the
US, South America and Africa.
Retail & consumer
P&G buoyed by robust demand for staples
Alistair Gray — New York
Elevated demand for paper towels,
washing-up liquid and laundry deter-
gent has lasted into the winter, giving
Procter & Gamble another bump in
sales and prompting the consumer
goods bellwether to increase its annual
forecasts once again.
The household products group pro-
jected that sales of brands including
Ariel, Bounty, Tampax, Pampers and
Head & Shoulders would remain strong
even after the rollout of coronavirus
vaccines.
Wall Street analysts had forecast
P&G’s rate of organic sales growth in its
second quarter would cool from 9 per
cent in the previous three months to
about 6 per cent, yet the US-based
group’s latest results indicate the pan-
demic-induced boost to the business is
showing little sign of fading. In fact, it
disclosed an 8 per cent year-on-year rise
in net sales to $19.7bn.
The trend for consumers to stay
inside is leading them to wash and cook
allowances for executive directors also
fell, Deloitte found.
These initial signs of pay restraint
preface what could be a combative AGM
season, with investors already warning
they will take a hard line on high execu-
tive pay at struggling companies.
Most FTSE 350 groups start to report
2020 figures from February, which
means boards will be making decisions
on executive awards in coming weeks.
Mirza Baig, head of investment stew-
ardship at Aviva Investors, said many
shareholders had given companies
some grace on pay in 2020 as they grap-
pled with the pandemic. But he warned
of “enough red flags” in the pay pack-
ages proposed in the last three months
of 2020, particularly around long-term
Screen saver
Netflix ends
debt reliance
as prices rise
Shows such as ‘The Prom’, above,
starring Meryl Streep and James
Corden, have helped Netflix top
200m subscribers
Melinda Sue Gordon/Netflix
at home more often than usual, which
has fuelled demand for staples from
dishwashing tablets to toilet paper.
Concern about the spread of coronavi-
rus has also made consumers more
hygiene-conscious, suggesting lasting
benefits for companies in the sector
including Reckitt Benckiser of the UK
and Kleenex maker Kimberly-Clark, as
well as P&G.
Jon Moeller, chief operating officer
and chief financial officer, noted that
quarterly sales in China, the company’s
second-largest market, had risen 12 per
cent, the same rate as the US, despite
reduced coronavirus cases.
“If that’s representative, there’s no
indication that vaccine availability,
more social mobility, is inherently a
demand reducer.”
Not all consumer trends in the pan-
demic have benefited P&G, however.
Lockdown restrictions on department
stores have hurt sales of premium skin-
care products, and distribution through
venues such as hotels and restaurants
has also fallen, Mr Moeller said.
FINANCIAL TIMES
COMPANIES & MARKETS
bonus awards, to “make us concerned
about what is ahead”.
“2021 will be the acid test. Last year
we voted against a third less [pay resolu-
tions] than we did in 2019. The early
signs are we expect that number to
rocket back up in 2021,” Mr Baig said.
Big shareholders, including Legal and
General Investment Management, the
UK’s largest asset manager, and Schrod-
ers, warned last year that executives
needed to share the pandemic pain.
Deloitte said boards were showing
restraint when making decisions on
executive pay amid Covid-19. Typically,
annual bonuses make up a third of a
chief executive’s total pay package.
More than 90 per cent of the groups
that had used but not repaid money
Netflix will no longer raise debt to fund
its spending spree on television shows
and films and may begin returning
money to shareholders through
buybacks, marking a milestone in the
company’s evolution as it reported it
had passed 200m subscribers.
Since 2011, when Netflix leapt into
original programming with House of
Cards, the video streaming pioneer has
funded content acquisition through
high-yield bonds as it sought to
outspend Hollywood studios and build
an enticing catalogue.
Netflix’s latest quarterly figures late
on Tuesday underscored how
successful that strategy had been: the
streaming giant had almost 204m
subscribers at the end of 2020, it said,
having added 37m paying customers
last year.
Some 8.5m of those were added in
the quarter to the end of December,
eclipsing analysts’ forecasts of 6m.
“We believe we no longer have a
need to raise external financing for our
day-to-day operations,” Netflix said in
a letter to investors, adding that it
would explore stock buybacks.
The shares jumped about 12 per cent
P&G has also incurred higher material
costs and safety-related expenses. The
cost of products sold increased 4 per
cent in the quarter.
“We expect some of the current tail-
winds to our business will dissipate, but
some very strong headwinds should
abate or disappear,” he said.
Shares rallied 14 per cent in 2020, but
before yesterday they had shed 3 per
cent this year on doubts how much
longer the boom could continue. Eco-
nomic weakness has also prompted
some analysts to raise concerns about
how long shoppers will remain prepared
to pay extra for P&G brands, which tend
to be more expensive than rivals.
Government stimulus had made a
“real difference” so far, Mr Moeller said,
adding that the company would have to
see how future fiscal support plays out.
P&G said it was on track to deliver an
annual increase in sales of 5 to 6 per cent
in its fiscal year, up from its previous
forecast for a rise of 3 to 4 per cent. Net
income in the financial second quarter
rose 4 per cent to $3.89bn.
from the government’s coronavirus job
retention scheme awarded no bonus,
Deloitte found. That was also the case
with groups that suffered big share price
falls, with four-fifths that had a drop of
more than a fifth paying no bonus.
Stephen Cahill, vice-chairman at
Deloitte, said: “We are seeing remunera-
tion committees more actively use judg-
ment and discretion to ensure that exec-
utive pay reflects the wider employee
and shareholder experience.”
Mr Cahill said boards would be more
careful after many executives were seen
to have avoided a hit from the 2008 glo-
bal financial crisis. “Now, with a growing
focus on societal fairness, boards are
more aware of the need to show
restraint,” he said. “Shareholders have
in after-hours trade. The California-
based company has delighted investors
in recent years despite burning billions
of dollars in cash.
Over the past decade, Netflix
borrowed more than $16bn in debt as it
raced to build a war chest of content.
During that time, the value of its stock
grew by more than $200bn.
Netflix had promised that as it
hooked more customers and raised
subscription prices, it would eventually
no longer need raise junk debt to fuel
its content spending. Critics questioned
whether the company would be able to
grow quickly enough to outpace its
debt payments.
But Netflix’s thesis has largely played
out, helped by a global pandemic that
lured people stuck at home under
lockdowns to its streaming platform
and kept it comfortably ahead in the
race for subscribers. Its fiercest rival,
Disney Plus, has 87m subscribers. The
majority of sign-ups in the fourth
quarter came from outside the US. In
October Netflix, raised prices in the US,
its largest market, by $1 to $14 a month
for its most popular plan.
As subscriber numbers have soared,
Retail & consumer
Richemont notches up 80% rise in China sales
Leila Abboud — Paris
Swiss luxury group Richemont enjoyed
a bump in sales during the quarter that
included the key Christmas shopping
season, as strong growth at its jewellery
brands in Asia and the Middle East off-
set weaknesses in Europe.
The company behind jewellers Cartier
and Van Cleef & Arpels reported a 5 per
cent rise on a constant currency basis to
reach revenues of SFr4.2bn ($4.7bn) in
its third quarter to the end of December.
This was ahead of analysts’ expectations
for flat sales.
Richemont’s performance provides
further evidence that even as the pan-
demic rages, people with means are still
treating themselves to luxury goods as
other types of spending, such as travel
and restaurants, remain off limits.
But the biggest luxury companies are
faring better than smaller ones during
the crisis due to the tight control they
keep over distribution and their deeper
pockets to invest in ecommerce. They
have cut costs quickly, held virtual fash-
been very clear on their expectations.”
Boards also need to make decisions
over future pay awards, including long-
term incentives, with a quarter of com-
panies due a three-year pay review.
Sacha Sadan, director of investment
stewardship at LGIM, said: “In general,
companies have been responsible.”
But he warned that pay was “abso-
lutely a big issue” for the coming annual
meetings season, particularly on long-
term incentive plans.
He added that some companies had
complained their long-term bonuses
“aren’t paying out” because of the pan-
demic, but he warned that shareholders
would not look kindly on businesses
resetting these to try to boost overall
remuneration packages.
revenue has grown sufficiently for
Netflix to foot the bill of both its
operating expenses and its heavy
content spending. Revenues in the
fourth quarter were up 22 per cent
from the same period last year to
$6.6bn, in line with analysts’
forecasts.
Net income fell to $542m, from
$587m a year ago, but the cash flow
position was significantly improved.
For the quarter, the cash outflow
was $284m, narrowing from $1.7bn
a year ago, and the company said it
expected to break even this year and
be cash flow positive after that.
“Rapid subscriber growth means
cash flow is on the up, and external
finance is apparently no longer
needed to plug what was a cash
sinkhole,” said Sophie Lund-Yates,
analyst at Hargreaves Lansdown,
adding that the company’s ability to
raise prices feeds a “virtuous loop”.
“The [price] hikes allow it to
create better content, boost
engagement and then shake more
pennies from customer pockets, so
the cycle goes on.” Anna Nicolaou
See Lex
ion shows, and catered to their best cli-
ents by selling over video and text chats.
Smaller players, such as Tod’s and Sal-
vatore Ferragamo in Italy, have strug-
gled to keep up.
But even well-known brands such as
UK-based Burberry have been affected.
Yesterday the company reported a
worse than expected 9 per cent decline
in same-store sales during the third
quarter.
Shares in Richemont closed up nearly
3 per cent yesterday.
The Cartier owner’s third-quarter
performance has beaten forecasts
Thursday 21 January 2021
Financial services
Singapore
begins push to
claim role of
Asia Spacs hub
Tabby Kinder — Hong Kong
Mercedes Ruehl and Stefania Palma
Singapore
Singapore’s stock exchange is acceler-
ating plans to become the first big
bourse in Asia to list special purpose
acquisition companies, aiming to capi-
talise on a surge of foreign investment
in fast-growing technology start-ups.
SGX said it would begin a formal consul-
tation within two months into allowing
blank cheque companies to list in the
city state. It has already held talks with
global banks and issuers, according to
people involved in the discussions.
Singapore would be the first exchange
in Asia to join the rush of tech-focused
Spacs, one of the hottest asset classes in
the US, where blank cheque vehicles
raised a record $80bn in 2020.
Sponsors raise capital by listing Spacs
and then hunting for a company to
acquire or merge with. The structure
provides companies an alternative
route to going public to expensive and
time-consuming initial public offerings.
Tan Boon Gin, chief executive of
SGX’s regulatory unit, said this month
that the exchange had received a
number of expressions of interest. By
giving issuers a faster path to market
and more certainty on pricing, Spacs
“would benefit capital markets both
locally and regionally”, according to the
exchange.
Bankers said SGX would be well posi-
There is a ‘backlog
building’ of sponsors
aiming to list Spacs
targeting Asian groups
tioned to attract Asia-based and region-
ally focused acquisition vehicles that
have listed in the US, such as Bridget-
own Holdings, a Spac backed by Hong
Kong businessman Richard Li and Sili-
con Valley investor Peter Thiel.
Bridgetown raised $595m in a US IPO
in October, making it the biggest Spac
focused on south-east Asia. Bridgetown
2, which launched this month, is seek-
ing to raise $200m to target additional
Asian companies.
Udhay Furtado, co-head of Citigroup’s
Asia equity capital markets business,
said there was a “backlog building” of
financial sponsors aiming to list Spacs
targeting Asian companies, especially in
south-east Asia.
More than five Spacs by Asia-based
sponsors in the US have announced
plans to list or have gone public in the
first two weeks of 2021, including one by
Hong Kong-based Primavera Capital
and Princeville Capital.
SGX’s pursuit of Spacs comes as some
of south-east Asia’s highest-profile uni-
corns, or private companies worth at
least $1bn, are expected to seek public
listings this year.
Those include ride-hailing apps Grab
and Gojek, valued at $16bn and $10bn,
respectively, and Indonesian ecom-
merce start-up Tokopedia, recently val-
ued at $7.5bn.
SGX, which has suffered a string of
delistings, could be an early mover
because it has greater incentive to allow
in Spacs, Mr Furtado said.
The Singapore exchange is also facing
competition from regional rival Hong
Kong, which has drawn a steady stream
of “homecoming” listings by Chinese
tech groups seeking to reduce their
dependence on Wall Street amid ten-
sions between Washington and Beijing.
Bernstein analyst Luca Solca said:
“We take the Richemont update as
another clear data point that leading
players in the luxury goods sector con-
tinue a strong progression in the second
half, despite the second wave of Cov-
id-19 lockdowns in Europe.”
“We expect these results should sup-
port the sector, which was recently on
the back foot because of higher Covid-19
cases in China,” he added.
The halt of international travel last
year meant the Chinese, who have
driven nearly all of the sector’s growth
in recent years, turned to buying at
home instead of on shopping trips to
Europe’s fashion capitals.
Richemont’s sales in China rose 80 per
cent in the most recent quarter, while in
Europe they were down 20 per cent and
in the Americas were largely flat.
Richemont did not give any guidance
for the coming quarter, but its chairman
and largest shareholder Johann Rupert
warned last year that Covid-19 would
cause “grave economic consequences”
for the sector for up to three years.
Thursday 21 January 2021 ★ FINANCIAL TIMES 9

COMPANIES & MARKETS

Mining

Trafigura lays down €1.5bn of its own BHP to slash

cash to cement ties with Rosneft
Investment in Vostok Oil weighed against environmental concerns and risk of tighter US sanctions
Neil Hume and David Sheppard
London
Western companies know that tie-ups
with Russia’s state-backed oil and gas
producers carry political and reputa-
tional risks that must be weighed
against gaining access to the country’s
bounty of natural resources.
But for Trafigura, becoming Rosneft’s
go-to commodity trader has a more con-
crete expense: €1.5bn of its own cash,
injected into a €7.3bn deal for a 10 per
cent stake in an Arctic oil project backed
by Vladimir Putin.
The extent of Trafigura’s investment
in Vostok Oil, its largest, illustrates the
lengths to which it will go to cement its
relationship with Rosneft and secure
millions of barrels of crude for its trad-
ing business.
As US sanctions have squeezed the
Russian group’s access to credit, Trafig-
ura has vied with Glencore to become
the favoured partner of the second-larg-
est oil producer and win prized supply
agreements.
But investing in a project in an envi-
ronmentally sensitive area, at a time
when Trafigura faces pressure to adapt
its business model as developed econo-
mies start the transition away from fos-
sil fuels, has raised questions.
It comes as the company, which is
owned by its top 850 employees, is plan-
ning a multibillion-dollar push into
renewable energy with an Australian
partner and has announced its first
emissions targets. But it is far from turn-
ing its back on the oil trade.
“When traders look to buy equity in a
project, it’s normally to create a degree
of ‘stickiness’ with the commodities it
value of
unwanted
Australian
coal assets
Neil Hume
Natural Resources Editor
BHP will reduce the value of its Austral-
ian thermal coal assets by up to $1.25bn
as it seeks to divest the business and
focus on more environmentally
friendly commodities.
The world’s biggest miner is looking to
sell or spin off its New South Wales
Energy Coal unit along with stakes in a
Colombian mine and a joint venture
producing coal used in steelmaking.
Mike Henry, appointed chief execu-
tive last year, is looking more towards
commodities such as copper and nickel
that will be needed in greater quantities
in the shift to cleaner forms of power
and transport.
In a quarterly production update yes-
terday, the Anglo-Australian company
said it would take a writedown of
$1.15bn-$1.25bn on NSWEC, slashing its
value to $250m-$350m.
BHP said the impairment reflected
market conditions for its thermal coal,
which is used in power stations, the
strengthening Australian dollar and an
updated assessment of the likelihood of
recovering tax losses because of lower
profitability in future.
BHP has cited NSWEC’s tax assets as
one reason for not unifying its complex
structure, which involves listed compa-
Trafigura is top handler of Vostok’s planned development Output estimate for project nies in Australia, where the miner has
its headquarters, and in the UK.
Rosneft-supplied oil JPMorgan projection (m barrels per day) The Australian coal industry has been
Metric tonnes per annum (m)
100 km
Kara Sea
RUSSIA 2.5 hit by China’s decision to ban imports
Trafigura Glencore Vitol because of a diplomatic dispute over the
20 LNG plant East-Taymyr
E&A licences 2.0 origins of the coronavirus pandemic.
Dikson
Analysts say it will be difficult for BHP
15 Bay “North” JV with BP - to find a buyer for its unwanted coal
“Ermak” 1.5 assets because of growing investor con-
Khatanga
Gulf of Ob

produces and the partner,” said Roland
Rechtsteiner at Oliver Wyman. There
had been “a growing trend of buying
into assets” to secure “offtake” supply
deals and “long-term relationships with
the largest oil producers”.
A commodity banker said: “The
offtake is where the money is.” While
Trafigura’s investment was “a big
number . . . the deal washes its face on
profit from the offtake volumes”.
Vostok Oil will develop an oil-produc-
ing region on Siberia’s Taymyr Penin-
sula to rival the US Permian Basin or
Saudi Arabia’s Ghawar field. It will pull
together existing production of 370,000
barrels per day and exploration assets
and link them to markets in Europe and
Asia via the northern sea route, a fair-
weather shipping lane between the
Atlantic and Pacific.
Trafigura said: “This is a long-term
investment for the group in an exciting
oil and gas company with a resource
base for liquid hydrocarbons of 6bn
tonnes, including confident recoverable
reserves of about 3bn tonnes. The oil
production potential of the project’s
open and promising deposits is com-
parable to the largest projects in the
Middle East.”
The project, which will cost up to
$150bn to develop, includes con-
struction of 15 towns to house thou-
sands of workers needed to drill wells
and operate infrastructure.
It is expected to produce 1m barrels
of oil a day by 2028 and more than
2m b/d by 2035, the equivalent of 2 per
cent of global supply, while favourable
tax conditions boost returns.
Trafigura is the first investor,
but Rosneft is also expected
to seek support from China
and India at a time when
10
5 Dudinka
0 cluster
©Mapcreator.io/©HERE
2015 16 17 18 19 20
Sources: Petro-Logistics SA; JPMorgan
A sample is US sanctions have restricted its access to
collected at a western financing. Having a large trader
Rosneft such as Trafigura aboard is seen as a
platform in the step to lift the project’s appeal. Other
Samotlor field, trading houses approached by Rosneft
Nizhnevartovsk, have been cautious.
western Siberia. Trafigura already has strong ties with
Below, Jeremy Rosneft, the subject of US sanctions
Weir, CEO at since 2014, having helped it raise funds
Trafigura — Andrey through permitted short-term prepay-
Rudakov/Bloomberg
ment oil deals. It was part of the Rosneft-
led consortium that in 2017 took control
of Nayara, formerly Essar Oil, in India.
Data from Petro-Logistics SA, a con-
sultancy that monitors oil flows, show
that Trafigura shipped roughly 400,000
barrels a day of Rosneft’s crude in 2019
and 250,000 b/d last year, compared
with 280,000 b/d and 140,000 b/d
respectively for Glencore. Trafigura
declined to comment on the numbers.
While the Vostok Oil investment is
permitted under US sanctions, Jason
Hungerford, a partner at Mayer Brown,
pointed to the risk of a more hawkish US
stance towards Russia.
“The US has always avoided directly
sanctioning Rosneft’s oil exports
because of the disrup-
tion it could cause in
global energy mar-
kets,” he said. “But
the direction of
travel suggests
stricter sanc-
West-
Irkinskiy
Payakha cluster
Vankor
tions in the future are possible. It might
only take one incident — like the arrest
of [Alexei] Navalny this week — to raise
the temperature between Washington
and Moscow, and Rosneft is clearly seen
by the US as a pressure point it can tar-
get.”
Trafigura made its investment
through a Singapore-registered special
purpose vehicle called CB Enterprises,
financing the deal with debt and equity.
Filings in Singapore show that the
€5.775bn syndicated loan facility was
organised by Credit Bank of Moscow, a
fast-growing lender with ties to Rosneft
and Igor Sechin, its chief executive and
one of Mr Putin’s closest allies.
The loans, which are non-recourse,
have a maturity of 13 years and a five-
year grace period on repayments. They
would be paid back through the divi-
dends generated by Vostok Oil, Credit
Bank of Moscow said. In addition to the
loan, Trafigura was investing €1.5bn of
its own cash, the people said.
That makes it the largest acquisition
in Trafigura’s 27-year history and values
Vostok Oil at almost €73bn. To put those
figures in perspective, Trafigura’s group
equity was $7.8bn (€6.4bn) at the end of
September while Rosneft’s market capi-
talisation is $70bn (€55bn).
Trafigura cashed in on the market
chaos caused by the pandemic to report
record earnings before interest, tax,
1.0
0.5
Northern Sea
route
0
Pipeline
2021 25 30 35
‘The deal depreciation and amortisation of $6bn,
from $2.1bn in 2019. That cut Trafig-
washes its ura’s adjusted total debt to $2.76bn from
face on $5.3bn, giving it the confidence to push
ahead with the transaction, according to
profit from people with knowledge of the deal.
the offtake The transaction has some similarities
with the 2016 deal in which Glencore
volumes’ and Qatar’s wealth fund joined forces to
buy an $11bn stake in Rosneft. But while
Glencore disposed of its stake after 20
months, holding on to a five-year,
220,000 b/d supply deal, Trafigura has
no plans to flip its stake in Vostok Oil.
The prize will be greater access to Ros-
neft’s crude, including low-cost barrels
from the Arctic project. This would be
a light, sweet crude with a relatively low
carbon footprint that would not require
domestic blending, analysts said.
Trafigura declined to comment on the
size of the supply deals but bankers
reckon on an initial 10m barrels a
month (about 330,000 b/d) and more
once production ramps up. That would
cement Trafigura’s position as the domi-
nant exporter of Rosneft’s crude.
Trafigura sees Vostok as an important
project for an industry starved of invest-
ment because of low prices and the pivot
to renewables. “We expect that new,
low-cost sources of oil will continue to
be required to support essential human
needs for some time,” Jeremy Weir, chief
executive, said this month.
cerns about fossil fuels. They see the
company opting for a demerger. Mr
Henry has said divesting the assets
could take two years.
The impact of China’s ban plus after-
shocks of the Covid-19 pandemic was
evident in the update.
The price BHP received for thermal
coal in the six months to December
averaged $44.35 a tonne, down 24 per
cent on the same period last year. The
price for metallurgical coal was $97.61,
down 31 per cent.
Metallurgical coal is a big business for
BHP, the leading supplier of the com-
modity. Prices have rallied 20 per cent
over the past week, helped by reports
that China is admitting some cargoes.
BHP said its flagship iron ore unit
shipped a record 145m tonnes in the six
months to December to meet surging
demand from China. It increased its
production guidance for its financial
year to June to 245m-255m tonnes as a
result of the restart of Samarco, its Bra-
zilian joint venture with Vale.
Chinese demand for iron ore boosted
the price BHP received to an average of
$104 a tonne, up 33 per cent. That could
pave the way for a big dividend when
BHP announces half-year results in Feb-
ruary. “A special dividend at interim
results is possible,” said Christopher
LaFemina, Jefferies analyst.
BHP also said its board would make a
final investment decision on a Canadian
potash deposit mid-year. The Jansen
project could provide another leg to
BHP’s business, alongside its copper,
iron ore and oil and gas units. The com-
pany has spent billions developing
Jansen. It reckons more potash, a crop
nutrient, will be needed by the middle
of the next decade.
See Lex

Media Technology

Pearson cautious despite sales growth EU taps Google’s rivals on ad practices

Alex Barker — London
Pearson, the education and publishing
group, has bounced back to sales
growth but cautioned about further
exam cancellations and lockdowns
that have hammered its business
through the coronavirus pandemic.
Underlying growth in the online learn-
ing businesses of 30 per cent helped
Pearson report a 4 per cent increase in
sales in the fourth quarter, its only posi-
tive three-month period of the year.
The improved performance across
the board in the final three months of
the year was welcomed by investors,
with shares in Pearson closing 8.5 per
cent higher yesterday. After falling to its
lowest point in May since the mid-
1990s, the stock has climbed by more
than two-thirds, with confidence grow-
ing about potential for the online learn-
ing business and new management.
Andy Bird, a former Disney executive
who took over as chief executive in
October, said it had been an “incredibly
challenging year” for the company but
praised his team for being able to end
the year meeting market expectations
for profit and growth.
“Uncertainty remains in the near
term as a result of the ongoing pan-
Pearson chief
executive Andy
Bird said it had
been an ‘incredibly
challenging year’
for the publisher
demic, with further lockdowns, exam
cancellations and reduced global mobil-
ity,” he said. “However, I am excited
about our future given the shift to online
learning and the huge opportunity to
help more people develop the skills they
need.”
Mr Bird is expected to give more
details in March about his strategy to
make Pearson, the world’s biggest edu-
cation group, a more “consumer
focused” company.
In November he created a “direct to
consumer” division to accelerate its dig-
ital transition and expand the range of
learning products sold straight to indi-
viduals as well as via institutions. “We
start the year with momentum, pace
and confidence,” he said yesterday.
Roddy Davidson of Shore Capital
noted the “significant improvement” in
the group’s performance in the fourth
quarter, and said the company was well
placed to benefit from a rebound in edu-
cation spending. “That said, we remain
cautious on short-term trading pros-
pects and wait to get a better insight into
its new CEO’s plans,” he added.
Full-year sales were down 10 per cent
with the company expecting adjusted
operating profits in the range of £310m-
315m, in line with analyst expectations.
Sales at Pearson’s struggling North
American courseware division fell by
8 per cent.
Javier Espinoza — Brussels
Alex Barker — London
The EU has started asking rivals about
Google’s advertising practices two
years after closing a decade of investi-
gations into the company’s shopping,
advertising and Android businesses
that led to €8.2bn of fines.
Regulators in Brussels have sent ques-
tionnaires to publishers and advertising
companies asking them about Google’s
position in the online market, where it is
the dominant middleman between pub-
lishers and advertisers. The questions
may or may not lead to a formal inquiry.
Google’s technology stack has unri-
valled scale in serving automated ads on
websites in the open internet, connect-
ing buyers and sellers, providing data
and overseeing ad inventory auctions.
The move by EU investigators comes
after regulators in the US accused
Google in December of abusing its
monopoly and colluding with Facebook
to shut out rival ad exchanges. The con-
cerns of the EU relate to whether Google
abused its position to structure auctions
to its own benefit and tied parts of its ad
services in contracts, to the detriment of
publishers and advertisers. In the online
advertising market, intermediary fees
often range between 40 and 60 per cent
of the money spent by advertisers.
The questionnaire contains a range of
inquiries about Google’s behaviour and
how companies feel about a series of
rule changes, such as the decision by
Google in 2016 to combine the data it
gathered from people logging in to
Google services, such as Google Maps
and Gmail, with the data it gathered
from online searches.
“Certain practices may create obsta-
cles to entry and expansion of competi-
tors and/or protect Google’s position in
potential markets that relate to the col-
lection, access, processing, use and
monetisation of data, as well as neigh-
bouring and downstream markets for
the provision of online services,” the
regulator asked in the questionnaire.
The questionnaire also asked groups
to outline the importance of YouTube,
owned by Google, for their ad cam-
paigns, and their ad spend on search
campaigns on Google Ads. Regulators
asked companies if Facebook can be
regarded as a Google rival. The deadline
for submitting answers is tomorrow.
The questions are part of an investiga-
tion into the way Google collects data
that started in 2019.
Google said: “We compete with many
others in the industry and give people
granular controls over how their infor-
mation is used to personalise ads and
limit the sharing of personal data to
safeguard people’s privacy. We have
been engaging with the Commission and
others on this important discussion for
our industry and will continue to do so.”
The company is still contesting its
earlier EU fines in court. Politico first
reported on the questionnaires.
10
US finance chiefs weigh how to
spend vast corporate cash piles
Executives look at priorities
for the $2.5tn they borrowed
from bond investors in 2020
Joe Rennison
US companies are sitting on trillions of
dollars in cash that they borrowed to
survive the coronavirus shock of 2020.
The question now is what they do
with all that money — especially if an
economic recovery takes hold.
Corporate America borrowed a
record $2.5tn in the bond markets last
year. For some, that funding remains
crucial to their survival.
Pandemic-stricken companies such
as airlines and cinema operators are still
burning through cash, hoping for a
return to normal when people start
travelling and socialising again.
American Airlines last month said it
expected an average cash burn of close
to $30m per day for the fourth quarter
while cinema operator AMC recently
sought out additional financing.
But others are in better shape.
Companies in the US S&P 500 index
built up an additional $1.3tn of cash on
their balance sheets last year, according
to data from S&P Capital IQ. Many
businesses are having to decide what to
do with their borrowed fortune.
The first, and perhaps most obvious,
option is for companies to use excess
cash to reduce the scale of their
borrowings — starting 2021 with a debt
diet to undo 2020’s bond binge.
Bank of America’s regular survey at
the end of last year showed most fund
managers wanted companies to
improve their balance sheets by
reducing their debt load.
“This is the point in the cycle where
Currencies
Vaccine optimism for UK helps pound
rise to 8-month high against euro
Leke Oso Alabi and Tommy
Stubbington — London
The pound has reached its highest level
against the euro in eight months as the
fast pace of the UK’s Covid-19 vaccine
rollout fuels hopes of an accelerated
economic recovery.
Sterling, which has been rallying since
the start of the year, crossed €1.13 in
intraday trading yesterday for the first
time since May 2020.
By late afternoon, it gave up some
gains but was still 0.3 per cent higher for
the day at €1.1271. It was up 0.1 per cent
against the dollar to $1.3644.
The latest catalyst came in the form of
December inflation figures. A month-
on-month bump in the consumer price
index of 0.6 per cent was slightly more
than economists were expecting and
compared with a 0.3 per cent rise in
November.
Higher inflation makes it less likely
the Bank of England will make further
cuts to interest rates that would dent the
pound.
Sterling has steadily gained ground
since reports of significant progress in
trade talks between Brussels and the UK
Fixed income. Recovery funds
Investors seek better balance sheets while eyeing capital spending
Survey responses (%)
Improve balance Increase capital
sheets spending
2003 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source: BofA Global Fund Manager Survey
balance sheets generally are not in good
shape and even equity investors are
concerned about leverage . . . For the
vast majority of companies the focus
will be on balance sheet repair,” noted
the analysts.
Occidental Petroleum is one example
of a company wanting to divert some of
its cash flow to reduce its leverage — the
ratio of debt to profits, which provides
an important reading of corporate
strength.
On its third-quarter earnings call in
November, Vicki Hollub, Occidental
Petroleum’s chief executive, said debt
reduction would be an important use of
cash flow “well into early 2022”.
A desire for balance sheet
improvement stands at the top of fund
managers’ wishlists but its dominance
declined over the second half of 2020,
according to BofA’s survey.
Some investors are instead warming
to the idea of executives spending more
cash to help grow their business,
especially as companies are now more
able to snap up long-term debt
financing at rock-bottom rates.
at the end of last year. The subsequent
deal, announced on Christmas Eve,
helped allay fears of an abrupt and dis-
orderly end to the UK’s relationship
with its European partners.
Charles Diebel, head of fixed income
at Mediolanum Asset Management, said
the recovery in the currency was “a
function of avoiding the worst effects for
a hard Brexit combined with a very
aggressive Covid-19 vaccine plan”.
The speedy rollout of Covid jabs
“hopefully means the UK recovers at a
Investors are betting the Bank of
England will not cut interest rates
★ FINANCIAL TIMES
COMPANIES & MARKETS
Return cash to
shareholders
80
Jan
2021
60
40
20
0
AT&T, which has the biggest pile of
net debt of any non-financial company
in the world at almost $175bn, according
to Bloomberg data, has reiterated its
pledge to reduce this overhang.
However, John Stephens, the com-
pany’s chief financial officer added on
its third-quarter earnings call in
October that because of its work to push
out when its borrowing falls due, it can
also opportunistically look to invest
cash into the business.
The company’s balance sheet and
debt maturities were “in really good
shape”, he said. “The bond market has
responded very well to it. We’ll continue
to reduce our debt levels. But we’ve got a
lot of flexibility going forward.”
Other companies may feel similarly.
With such a low cost of borrowing at the
moment, deploying cheap funds could
prove attractive.
“If you look at the list of options,
sitting on cash in this interest rate
environment doesn’t make a lot of
sense,” said Kevin Foley, global head of
debt capital markets at JPMorgan. “You
could pay it back but there are breakage
faster pace, once immunity is estab-
lished, and thereby the chances of an
economic recovery accelerating are
higher in the UK than in Europe,” he
added.
Economists say a sizeable uplift in
household saving during the coronavi-
rus crisis could mean that the recovery
will get another boost when people start
to spend more freely again.
“This saving is a coiled spring which
will be released for the UK’s economic
benefit, helping to send CPI inflation
back to 2 per cent,” said Savvas Savouri,
chief economist at Toscafund Asset
Management.
Despite the threat to the economic
recovery posed by England’s latest
national lockdown, investors are bet-
ting the Bank of England will not
respond by cutting rates.
For much of last year, markets were
pricing in a cut from the current record
low of 0.1 per cent, with a chance of
negative interest rates to come later in
2021.
Since then, traders have mostly
unwound those wagers after vaccine
breakthroughs fuelled hope of a swift
growth rebound.
Big call: AT&T costs to that. Instead, maybe you just
has the largest invest in the business.”
pile of net Another option for management
debt of any teams is to take a more aggressive move,
non-financial such as an acquisition or buying back
company stock to please their investors.
Christopher Dilts/Bloomberg
Analysts expect big US banks to spend
about $10bn this quarter on share
repurchases after getting the green light
last month from the Federal Reserve to
restart these programmes.
They also anticipate a rise in buyouts,
funded in part by the cash raised
through debt markets last year.
Some companies may take on more
debt with this aim in 2021. Early exam-
ples this year include Home Depot, the
home improvement shop, and US Lum-
ber, the building materials supplier.
It has never been cheaper for
companies to borrow. The average
yields on bonds issued by both riskier
high-yield borrowers, and safer
investment grade companies, are at or
around record lows.
Almost 90 per cent of so-called junk
bonds and more than 95 per cent of
investment grade bonds are trading at
or above their original issue price,
suggesting that they could be refinanced
at a lower cost, according to indices run
by Ice Data Services.
Some companies will consider it
‘With the prudent to maintain a surplus of cash,
financed through debt markets,
onset of the given the uncertain economic outlook,
vaccine, strategists said.
Even with the prospect of widespread
issuers are Covi-19 vaccinations, a cash buffer Our global
feeling good would help in the event of any further team gives you
economic shocks. market-moving
about the “Issuers, certainly with the onset of news and views,
cash they the vaccine, are feeling good about the 24 hours a day
cash they raised,” said John Hines, head ft.com/markets
raised’ of debt capital markets at Wells Fargo.
Equities
Tokyo Stock Exchange faces shake-up
with shedding of cross-shareholdings
Leo Lewis and Kana Inagaki — Tokyo companies have a listed shareholder
owning a slice of more than 30 per cent.
Corporate Japan is facing a historic
That compares with 0.9 per cent in the
reshuffle of the Tokyo Stock Exchange
US and 0.2 per cent in the UK.
and aggressive new guidelines from
“The opportunities for nefariously
proxy advisers designed to compel a
exploiting this in Japan are far greater
selldown of the country’s widely criti-
because the legal infrastructure cover-
cised “cross-shareholding” networks.
ing the issue is so much laxer,” said CLSA
The changes could force companies in Japan strategist Nicholas Smith.
banking, construction, food and But there are growing signs of a multi-
transportation — sectors in which the
problem is most acute — to offload
cross-held shares over the next few
‘The opportunities for
weeks to flatter their appearances nefariously exploiting this
ahead of Japan’s financial year-end in
March, analysts said.
in Japan are far greater.
Cross-shareholdings are intercon- The issue is so much laxer’
nected portfolios of ownership by listed
Japanese companies in each other, pronged assault on the practice. In a
which protect underperforming man- significant overhaul in April, the TSE
agements with a cushion of automatic will streamline its six boards and 3,753
investor support. listed stocks to three tiers: prime, stand-
Although cross-holdings have been in ard and growth.
decline since a 1990s peak, companies Membership of the desirable prime
justify them as necessary to “maintain index will depend on the March 31 level
business relationships” — infuriating of free-floating market capitalisation,
fund managers who view such webs as a excluding cross-held shares.
recipe for complacency, low returns on The change should in theory push a
equity and poor governance. number of companies into asking cross-
Almost 11 per cent of Japan’s listed holders to sell down stakes before the
Thursday 21 January 2021
Crypto
New York’s
probe into
Tether hit by
fresh delay
Eva Szalay
New York’s investigation into crypto-
currency Tether and its parent has
suffered a fresh delay, leaving investors
uncertain over the outlook for one
of the industry’s most closely watched
cases.
iFinex, which owns both Tether and
trading platform Bitfinex, has agreed
with the New York attorney-general to
push back the production of documents
that will inform the course of the
inquiry, according to a filing in a New
York court late on Tuesday.
The documents were initially due on
January 15 but the deadline has now
been delayed 30 days, the document
shows.
Tether, a so-called stable coin, is
pegged to the price of the dollar and is
designed to facilitate trading with other
digital tokens. It has become one of the
most successful digital currencies
alongside bitcoin.
Tether accounts for 80 per cent of
the stable coin market and recently
garnered higher turnover than bitcoin,
Philippe Bekhazi, chief executive at
crypto market maker XBTO, said at the
Crypto Finance Conference yesterday.
The New York attorney-general laid
out findings from its investigation into
Tether in a court petition in April 2019.
The filing said that Tether claimed
on its website until February 2019 that
every unit of the digital currency is
“always backed 1-to-1 by traditional
currency held in our reserves”.
Tether and Bitfinex had a turbulent
time for years forging relationships with
banks who typically eschew transac-
tions with unregulated cryptocurrency
exchanges, the NY AG said.
By 2018, Bitfinex ended up placing
more than $1bn of “co-mingled
customer and corporate funds” with an
entity that is thought to be based in
Panama with “no contract or similar
written agreement” entered between
the two groups, the petition said.
Bitfinex faced “extreme difficulty
honouring its clients’ requests to
withdraw their money from the trading
platform” by mid-2018 because the
Panamanian bank “held all or almost
all of Bitfinex’s funds,” according to the
filing.
The group “refused to process cus-
tomer withdrawal requests and refused
or was unable to return any funds to
Bitfinex”, it said.
At the time the petition was filed with
the court, Bitfinex had lost access to
$851m held at the Panamanian entity
and then hid these developments from
its clients, the NY AG said.
“Our investigation has determined
that the operators of the Bitfinex
trading platform, who also control the
tether virtual currency, have engaged
in a cover-up to hide the apparent loss
of $850m of co-mingled client and
corporate funds,” said NY AG Letitia
James.
The attorney-general’s office declined
to comment.
Bitfinex has denied wrongdoing,
saying claims by the attorney-general’s
office “were written in bad faith and are
riddled with false assertions”.
end of March to qualify for the prime
index and the huge investment that will
track the new index, said Mizuho Secu-
rities chief strategist Masatoshi Kikuchi.
In October, US proxy adviser ISS
implemented new guidelines calling for
investors to vote at shareholder meet-
ings against directors at any company
that allocates 20 per cent or more of its
net assets to cross-shareholdings.
The proposals will apply from
February 2022 but will be based on
holdings as of March 31 this year.
Rival proxy adviser Glass Lewis
followed suit with a tougher proposal,
putting the cut-off line at 10 per cent.
According to Goldman Sachs, about 9
per cent of companies listed on the
TSE’s first section will not meet the ISS
requirement, including advertising
group Dentsu, electronics and ceramics
manufacturer Kyocera and conglomer-
ate Mitsubishi Heavy Industries.
While many analysts foresee a deci-
sive impact on Japan’s biggest corporate
names and its huge hinterland of mid-
cap listed companies, others warn
investors to expect a reform-crushing
campaign from the powerful Keidanren
business lobby.
Thursday 21 January 2021 ★ FINANCIAL TIMES 11

COMPANIES & MARKETS

The day in the markets Look again at the

What you need to know
financial system’s
3 Wall Street at record on the day Biden
dangerous faultlines
is sworn in as US president
US stocks have had a good run since November’s election
3 Sterling strengthens to eight-month S&P 500 index, % monthly gain
high against the euro
3 Gold rises in anticipation of US
inflation rising
15
Paul Tucker
10
US stock markets hit records as Joe Biden
became the 46th US president, propelled
5
Markets Insight
by optimism that the administration’s
$1.9tn stimulus spending plan could help

T
insulate the global economy from the 0 he west cannot afford markets. Acting as the market maker of There were plans to develop policies
damage wrought by coronavirus. another financial crisis. It last resort is not the same as using quan- for such shadow banking, distinguish-
The S&P 500 gained 1.4 per cent to would be a disaster in every titative easing to stimulate spending in ing it from the vanilla capital markets
reach a fresh peak at lunchtime in New -5 possible way domestically, the economy or buying bonds to peg activity that does not represent a threat
York, having closed higher the session and a geopolitical gift to debt-servicing costs. It is about restor- to the resilient provision of essential
before after Treasury secretary nominee strategic competitors in Beijing and ing liquidity by acting as a backstop credit, insurance and payments serv-
Janet Yellen urged Congress to “act big” -10 elsewhere. buyer and seller, not targeting a price. ices. But the plans stalled and, when the
on stimulus. Last March and April, the fabric of our Second, the plumbing and design of shadow banking label was ditched for
The technology-focused Nasdaq financial system was stretched almost the main government bond and bond- the much more positive sounding
Composite rose 1.9 per cent to a new -15 beyond endurance. Only intervention lending markets need repairs, and pos- “market-based finance”, the issue was,
record, boosted by a rallying Netflix. Jan 2020 Jan from the north Atlantic central banks sibly overhauling, if they are to cope in effect, whitewashed.
“Investors see a Goldilocks scenario for 2021 seems to have averted some kind of with today’s extraordinary occasional Last October, the Systemic Risk
Jan 2021 figure is to-date
stock markets,” said Silvia Dall’Angelo, Source: Refinitiv disaster triggered by markets grasping bursts in selling activity. Council, a group of former top central
global economist at UK fund manager the pandemic was serious. Maybe, as Stanford economist Darrell bankers and regulators, academics and
Federated Hermes, citing a popular term One can more than quibble over the Duffie has proposed, all transactions in others, published proposals for reforms
for moderate economic growth and Stoxx Europe 600 index rose 0.7 per cent highest in eight months against the euro, gigantic scale of central banks’ bond government bonds should be processed to ensure a stable financial system.
inflation. while Frankfurt’s Xetra Dax firmed 0.8 per gaining 0.3 per cent to purchase just purchases and their fuzzy explanations The 2008 market meltdown triggered
While “massive” US stimulus spending cent and London’s FTSE 100 added 0.4 under €1.13, after stronger than expected but problems in monetary politics by the dramatic failure of the invest-
was expected to feed faster price rises per cent. inflation data for December signalled the should not distract from the imperative The 2008 market meltdown ment bank Lehman Brothers gripped
this year, Ms Dall’Angelo added that the “The US stimulus will increase global UK’s economic slowdown may be less of ensuring the system proves more gripped the public. But the the public, fuelling demands for reform.
US Federal Reserve was unlikely to demand, which will benefit European severe than feared. resilient in future. But the March 2020 near miss has
respond with an interest rate increase companies,” said Francesco Sandrini, a Anticipation of higher inflation has Many describe the US Treasury mar- March 2020 near miss has passed most people by.
that would knock companies’ earnings. multi-asset fund manager at Amundi. driven a reordering in US markets since ket as the most liquid capital market in passed most people by Led by Treasury secretary nominee
“Markets are relying on monetary “But we think European equities are set the Democrats won control of the Senate. the world. It would be more accurate to Janet Yellen, authorities, including
policy to remain quite accommodative,” for a pause,” he added, as investors A measure of inflation expectations say, for the dollar’s place as the world’s legislators, need to get on with it.
she said, noting comments made last assess the “economic hits from derived from inflation-protected debt premier reserve currency to be secure, through central clearing houses. But The system is less resilient than
week by Fed chairman Jay Powell that lockdowns” against the pace of instruments is running at more than 2 per trading in Treasuries must remain rea- since many clearing houses are now claimed. Legislators should use forth-
the central bank was unlikely to respond vaccination programmes that has so far cent. Gold, commonly used as a hedge sonably liquid in all weathers. The same super-systemic, authorities should con- coming confirmation and oversight
to any economic recovery “too early”. been sluggish in some countries. against inflation, gained 1.4 per cent to goes for government bond markets on template that solution only if, at long hearings, on both sides of the Atlantic,
Across the Atlantic, the continent-wide In currencies, sterling rose to its $1,864 an ounce. Naomi Rovnick the European side of the Atlantic. last, they grasp the nettle of how to to demand that incoming and incum-
Three things are needed to tackle this resolve a distressed central counter- bent officials and regulators commit to
part of the backlog of unfinished or party without a taxpayer bailout. This is tackling these dangerous faultlines.
Markets update neglected business for safeguarding a painful piece of badly needed reform. So democratic leaders, please do what
stability. First, central banks need to Third, and most significantly, the only you can do: inject public energy
dust down the plans developed a decade spectre of excessive leverage and into this. More prosaically, demand that
ago for them to act as market makers of liquidity mismatches among some substantive progress be reported to the
US Eurozone Japan UK China Brazil last resort — buying and selling securi- types of funds and other investment next G20 summit. And central bankers,
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa ties, subject to an insurance premium — vehicles really must now be addressed. market regulators and prudential
Level 3841.65 1584.88 28523.26 6740.39 3583.09 119773.81 when trading liquidity evaporates. Banking’s historical fragility is being supervisors, act decisively whether or
% change on day 1.13 0.70 -0.38 0.41 0.47 -0.72 You don’t need to buy the whole of a replicated outside the industry and not elected power stirs itself.
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ market to underpin its liquidity as without constraints or backstops. In A near miss was a peculiar kind of
Level 90.530 1.211 103.570 1.363 6.468 5.298 Mario Draghi demonstrated in 2012 general terms, this was foreseen: the re- blessing — don’t let it go to waste.
% change on day 0.035 -0.165 -0.322 0.073 -0.310 -0.503 when he declared the European Central regulation of banking after the 2008-09
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond Bank would “do whatever it takes” to collapse was obviously going to incen- Paul Tucker is chair of the Systemic Risk
Yield 1.094 -0.530 0.035 0.299 3.159 7.154 deter the run on sovereign debt tivise activity to migrate elsewhere. Council and author of ‘Unelected Power’
Basis point change on day -0.240 -0.300 -0.680 1.100 -0.200 -5.200
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 440.01 56.29 53.36 1834.70 25.30 3480.40
% change on day 1.01 0.75 0.60 0.09 1.73 -0.10
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
4000 1600 7040

3840 1560 6720

3680 1520 6400

| | | | | | | | |
3520 || | | | | | | | | | | | | | | | | | | 1480 || | | | | | | | | | | | | | | | | | | 6080 | | | | | | | | | | |

Nov 2021 Jan Nov 2021 Jan Nov 2021 Jan

Biggest movers
% US Eurozone UK
Netflix 14.81 Hugo Boss 4.42 Pearson 8.57
Carmax 6.76 Unicredit 4.19 Johnson Matthey 6.54
Ups

Dr Horton 5.49 Daimler 4.15 Burberry 3.86

Invesco Ltd 5.48 Thales 3.84 Informa 3.63
Pultegroup 5.46 Volkswagen 3.73 Standard Life Aberdeen 3.62
%
Bank Of New York Mellon -7.01 Merck -4.13 Glaxosmithkline -2.17
Us Ban -5.07 Caixabank -2.73 Avast -1.67
Downs

Live Nation Entertainment -3.58 Edf -2.34 Standard Chartered -1.55

Fastenal -3.45 Novozymes -1.78 Experian -1.23
Technipfmc -3.20 Endesa -1.74 Astrazeneca -1.00
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

A blockbuster quarter sent Netflix to an Strong sales figures helped to send Swiss WHSmith, the high street retailer and
all-time high yesterday. luxury group Richemont higher. travel agent, rallied after revealing that its
For the full year, the streaming giant It reported a 5 per cent increase in cash burn and liquidity position were in
added a record 37m paying customers, sales on a constant currency basis for the better shape than anticipated.
achieved $25bn in annual revenue — a 24 final quarter of last year. The company had £340m of available
per cent year-on-year increase — and A robust performance in the Middle cash and facilities as of the end of
grew its operating profit 76 per cent to East, Africa and the Asia Pacific region December, having “delivered a good
$4.6bn. “more than offset single-digit declines in performance over the Christmas trading
“We framed Netflix as a long-term the Americas and Japan and a marked period, ahead of our expectations”.
winner as more consumer habits shift contraction in Europe”, said the owner of For the 20 weeks to January 16 2021,
globally toward a handful of streaming Cartier, Van Cleef & Arpels and Piaget. total group revenue was 59 per cent of
media platforms and feel this recent Quarterly revenue of €4.186bn beat revenue for the same period in 2019.
earnings report will act as a further consensus estimates by 5 per cent, said “For now, the market seems to be
validation point,” said UBS, which RBC Europe, driven by a 14 per cent rise retaining its belief in WHSmith’s ability to
upgraded the group to “buy” from in jewellery sales. bounce back from the pandemic,” said
“neutral” and lifted its target price. “The luxury jewellery category is investment group AJ Bell. “Supporting
Netflix peer Disney, which launched a amongst the most attractive within the this optimism is the liquidity position
rival streaming service in November 2019, sector, offering long-term historical . . . with the company generating cash in
also climbed. growth rates of +7-8 per cent,” added both November and December — no
A share offering sent Gevo tumbling as RBC, which assigned Richemont an mean feat given the backdrop.”
the renewable chemicals and biofuels “outperform” rating and a price target of Strong full-price sales helped to lift
company announced the sale of $350m of SFr95 a share. fashion group Burberry.
common stock at $8 a share, a 27 per cent Telia Company rallied after the Despite reporting a 9 per cent fall in
discount to Tuesday’s closing price. Swedish telecom operator announced its same-store sales in the 13 weeks to
Proceeds from the offering are operational cash flow reached SKr12.1bn December 26, it was cheered by a “high
earmarked for “fund capital projects, ($1.4bn) for the year, above a SKr9.5bn- single-digit full-price sales increase” in
working capital and for general corporate 10.5bn range previously forecast. the same quarter.
purposes”. Merck slid following news that it was Bank of America said there was “a lot
Best Inc, the US-listed Chinese logistics discontinuing its trial of bintrafusp alfa, a to like about” the results, which showed
company, rallied on a Reuters report that treatment for lung cancer. Burberry’s “brand elevation strategy” was
it was considering a sale as part of a The German science and technology working.
strategic review. group concluded that the experimental BofA also hinted that the group might
The Hangzhou-based group fell more drug was unlikely to meet its efficacy be a mergers and acquisitions target.
than 60 per cent in 2020. Ray Douglas goals. Ray Douglas Ray Douglas
12 ★ FINANCIAL TIMES Thursday 21 January 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 € $ per £ ¥ per $ £ per € Oil Brent $ Sep Gold $

-0.38% -0.165% -0.322% -0.337%

1.13% 1.75% 0.61% 0.41% 0.70% 1.08% 1.01% 0.073% 1.00% 0.09%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 21 - - Index All World Dec 21 - Jan 20 Index All World Dec 21 - Jan 20 Index All World Dec 21 - Jan 20 Index All World Dec 21 - Jan 20 Index All World Dec 21 - Jan 20 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
28,523.26 3,114.55
3,841.65 6,740.39 13,921.37
17,996.53
6,551.06 13,565.98 26,806.67
17,534.63
3,694.92 2,733.68
Day 1.13% Month 3.55% Year 15.36% Day 0.22% Month 2.63% Year 2.26% Day 0.41% Month 3.17% Year -11.97% Day 0.77% Month -0.13% Year NaN% Day -0.38% Month 6.58% Year 18.64% Day 0.71% Month 12.35% Year 38.39%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
13,427.67 1,584.88 29,962.47 2,998.77
45,061.10 8,204.10
43,873.81 1,528.72 8,037.40
12,764.75 2,848.98
26,119.25
Day 1.75% Month 5.24% Year 42.97% Day -0.95% Month 2.72% Year -1.82% Day 0.70% Month 3.64% Year -4.42% Day 0.06% Month 2.07% Year -15.06% Day 1.08% Month 13.03% Year 3.08% Day 0.10% Month 5.16% Year -8.69%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
49,792.12
22,650.78 3,583.09
31,119.41 5,628.44
119,773.81 5,527.84 21,986.52 3,420.57
30,303.37
116,636.18 45,553.96
Day 0.61% Month 3.10% Year 6.02% Day -0.72% Month 1.41% Year 0.70% Day 0.53% Month 1.82% Year -7.40% Day 0.93% Month 2.98% Year -5.71% Day 0.47% Month 5.54% Year 16.50% Day 0.80% Month 6.03% Year 18.71%

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 49894.75 50516.59 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 24634.64 24427.84 Philippines Manila Comp 7143.30 7198.45 Taiwan Weighted Pr 15806.18 15877.37 Cross-Border DJ Global Titans ($) 452.41 444.32
Australia All Ordinaries 7051.00 7015.00 Czech Republic
PX 1074.86 1072.99 FTSE Italia Mid Cap 38183.53 37986.23 Poland Wig 58149.76 58042.59 Thailand Bangkok SET 1515.72 1522.59 Euro Stoxx 50 (Eur) 3622.45 3595.42
S&P/ASX 200 6770.40 6742.60 Denmark OMXC Copenahgen 20 1482.38 1483.67 FTSE MIB 22650.78 22441.72 Portugal PSI 20 5069.74 5077.21 Turkey BIST 100 1569.35 1565.01 Euronext 100 ID 1130.55 1122.18
S&P/ASX 200 Res 5492.60 5441.30 Egypt EGX 30 11598.90 11485.80 Japan 2nd Section 6789.59 6780.22 PSI General 3935.47 3932.93 UAE Abu Dhabi General Index 5676.15 5661.85 FTSE 4Good Global ($) 9452.33 9331.04
Austria ATX 3026.59 3002.26 Estonia OMX Tallinn 1440.08 1430.13 Nikkei 225 28523.26 28633.46 Romania BET Index 10214.06 10242.51 UK FT 30 2578.00 2559.40 FTSE All World ($) 440.01 435.60
Belgium BEL 20 3746.97 3713.33 Finland OMX Helsinki General 11352.34 11213.81 S&P Topix 150 1570.69 1578.16 Russia Micex Index 3466.80 3443.23 FTSE 100 6740.39 6712.95 FTSE E300 1584.88 1573.88
BEL Mid 8730.99 8754.28 France CAC 40 5628.44 5598.61 Topix 1849.58 1855.84 RTX 1486.90 1470.63 FTSE 4Good UK 6297.40 6271.36 FTSE Eurotop 100 2978.67 2959.13
Brazil IBovespa 119773.81 120636.39 SBF 120 4470.20 4447.23 Jordan Amman SE 1739.31 1740.49 Saudi-Arabia TADAWUL All Share Index 8878.30 8901.87 FTSE All Share 3816.31 3793.91 FTSE Global 100 ($) 2539.75 2500.61
Canada S&P/TSX 60 1067.45 1066.73Germany M-DAX 31577.89 31290.46 Kenya NSE 20 1894.18 1906.63 Singapore FTSE Straits Times 2998.77 2995.92 FTSE techMARK 100 6480.58 6376.90 FTSE Gold Min ($) 2330.04 2322.98
S&P/TSX Comp 17996.53 17957.37 TecDAX 3354.42 3311.64 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 354.17 356.75 USA DJ Composite 10315.55 10243.54 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 789.95 738.73 XETRA Dax 13921.37 13815.06 Latvia OMX Riga 1159.48 1173.11 Slovenia SBI TOP - - DJ Industrial 31119.41 30930.52 FTSE Multinationals ($) 2750.34 2722.48
Chile S&P/CLX IGPA Gen 23342.19 23438.85Greece Athens Gen 800.76 799.97 Lithuania OMX Vilnius 865.96 869.81 South Africa FTSE/JSE All Share 64108.51 63603.26 DJ Transport 13038.07 12900.15 FTSE World ($) 777.47 770.41
China FTSE A200 14516.73 14470.11 FTSE/ASE 20 1914.85 1910.95 Luxembourg LuxX 1364.98 1336.98 FTSE/JSE Res 20 63102.03 62265.14 DJ Utilities 860.86 857.45 FTSEurofirst 100 (Eur) 4058.00 4029.21
FTSE B35 9000.71 8988.96Hong Kong Hang Seng 29962.47 29642.28 Malaysia FTSE Bursa KLCI 1601.54 1601.88 FTSE/JSE Top 40 58857.76 58358.85 Nasdaq 100 13257.84 12996.54 FTSEurofirst 80 (Eur) 4969.26 4927.12
Shanghai A 3755.81 3738.27 HS China Enterprise 11949.35 11734.33 Mexico IPC 45061.10 45495.41 South Korea Kospi 3114.55 3092.66 Nasdaq Cmp 13427.67 13197.18 MSCI ACWI Fr ($) 661.09 655.65
Shanghai B 250.41 250.05 HSCC Red Chip 4229.97 4206.80 Morocco MASI 11482.26 11465.25 Kospi 200 424.01 421.35 NYSE Comp 15061.18 14987.34 MSCI All World ($) 2732.48 2713.49
Shanghai Comp 3583.09 3566.38Hungary Bux 44103.40 44610.00 Netherlands AEX 659.30 651.28 Spain IBEX 35 8204.10 8199.00 S&P 500 3841.65 3798.91 MSCI Europe (Eur) 1648.54 1650.45
Shenzhen A 2524.73 2489.23India BSE Sensex 49792.12 49398.29 AEX All Share 954.96 943.98 Sri Lanka CSE All Share 7884.45 7808.97 Wilshire 5000 40736.46 40328.83 MSCI Pacific ($) 3197.09 3169.28
Shenzhen B 1095.18 1086.57 Nifty 500 12078.35 11981.85 New Zealand NZX 50 13026.45 12881.31 Sweden OMX Stockholm 30 1978.37 1957.85 Venezuela IBC 1799541.90 1741966.10 S&P Euro (Eur) 1688.10 1674.79
Colombia COLCAP 1368.49 1383.59Indonesia Jakarta Comp 6429.76 6321.86 Nigeria SE All Share 41051.63 41082.38 OMX Stockholm AS 801.36 794.15 Vietnam VNI 1134.68 1131.00 S&P Europe 350 (Eur) 1635.11 1623.23
Croatia CROBEX 2013.05 2011.29Ireland ISEQ Overall 7456.90 7446.48 Norway Oslo All Share 1017.37 1006.88 Switzerland SMI Index 10945.46 10876.98 S&P Global 1200 ($) 3058.77 3030.48
Israel Tel Aviv 125 1662.32 1653.36 Pakistan KSE 100 45676.94 45903.23 Stoxx 50 (Eur) 3204.53 3185.91
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Jan 20 %Chg %Chg Jan 20 %Chg %Chg Jan 20 %Chg %Chg Jan 20 %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
Netflix 103.3 576.09 74.32 Astrazeneca 154.3 7645.00 -77.00 Asml Holding 581.1 453.15 13.25 Softbank . 1438.8 8694.00 -64.00 Pearson 737.20 9.2 - Indivior 130.60 26.8 - Saga 291.80 21.8 13.6 Automobiles & Parts 4169.50 4.2 -9.7
Amazon.com 81.5 3230.69 109.93 Bhp 131.5 2169.50 58.50 Lvmh 301.0 507.70 16.65 Fast Retailing Co., 512.4 91110.00 -1860.00 Johnson Matthey 2916.00 8.0 - Mitchells & Butlers 276.50 19.7 - Sme Credit Realisation Fund 72.57 18.0 20.2 Health Care Equip.& Services 7034.49 4.0 7.1
Apple 65.3 132.09 4.26 Rio Tinto 130.0 6034.00 117.00 Volkswagen Ag Vzo O.n. 297.6 157.62 4.82 Tokyo Electron 440.9 44530.00 400.00 Aveva 3780.00 7.0 - Tui Ag 417.70 14.3 - Wanton 307.00 13.7 19.9 Industrial Transportation 3256.88 3.0 13.2
Microsoft 41.9 223.91 7.47 Glaxosmithkline 129.0 1379.80 -30.60 Sap Se O.n. 275.9 104.86 0.96 Toyota Motor 340.3 7686.00 -22.00 Int Consolidated Airlines S.a. 161.85 6.1 - Just 77.65 12.6 - Kier 84.10 12.1 - Software & Computer Services 1984.48 2.8 3.5
Facebook 33.4 268.01 6.91 Reckitt Benckiser 117.3 6238.00 14.00 Iberdrola 262.5 11.73 -0.09 Mitsubishi Ufj Fin,. 288.7 489.70 -4.90 Smith & Nephew 1668.50 6.1 - Wetherspoon ( J.d.) 1244.00 11.6 - Chrysalis Investments 210.00 11.4 9.7 Industrial Metals 5441.68 1.9 9.9
Alphabet 28.4 1871.29 86.82 Anglo American 111.5 2675.00 49.00 Enel 244.4 8.58 0.00 Sumitomo Mitsui Fin,. 244.7 3383.00 -59.00 Persimmon 2733.00 4.6 - Greencore 117.50 11.0 -0.4 Value And ome Trust 213.00 11.4 13.6 Electronic & Electrical Equip. 10476.66 1.9 5.1
Alphabet 20.5 1875.63 84.77 Bp 108.3 302.85 1.60 Unicredit 221.9 8.11 0.33 Sony 243.8 10590.00 -15.00 Burberry 1805.00 4.5 - Greggs 1997.00 10.9 - Goodwin 3160.00 11.3 4.5 Equity Investment Instruments 13088.22 1.5 1.9
Advanced Micro Devices 17.0 89.16 -0.29 Unilever 107.4 4353.00 -28.00 Daimler Ag Na O.n. 221.0 57.91 2.31 Tokyo Electric Power ,orporated 240.7 381.00 27.00 Barratt Developments 702.80 4.1 - Apax Global Alpha 202.00 10.9 1.5 Boot (henry) 280.00 9.8 6.9 Pharmaceuticals & Biotech. 16384.10 1.5 3.9
General Motors 15.2 55.72 0.88 Vodafone 106.8 127.14 0.14 Sanofi 212.7 82.35 -0.88 M3,. 225.7 10120.00 -20.00 Scottish Mortgage Investment Trust 1267.00 3.8 - Tritax Big Box Reit 186.00 10.5 - U And I 70.00 9.4 9.9 Media 8086.25 1.1 1.2
Nvidia 13.8 530.86 9.85 Hsbc Holdings 88.8 408.00 -3.45 Allianz Se Na O.n. 204.2 200.25 -0.75 Taiyo Yuden Co., 225.0 6100.00 230.00 Associated British Foods 2304.00 3.7 - Ssp 353.80 10.1 - Ricardo 380.00 9.2 - Chemicals 14109.03 1.1 3.6
Evraz 519.00 3.5 - Genus 4704.00 10.1 - Devro 170.40 8.8 - Food Producers 7046.58 1.1 -0.1
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
Dcc 5884.00 3.2 - Easyjet 832.80 9.2 - Batm Advanced Communications Ld 108.50 8.5 16.9 Real Estate Investment Trusts 2720.65 0.7 -1.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Netflix 576.09 74.32 14.81 Wh Smith 1717.00 162.00 10.42 Hugo Boss Ag Na O.n. 28.09 1.19 4.42 Sumitomo Chemical , 466.00 41.00 9.65 B&m Eur Value Retail S.a. 500.80 -9.0 - Petrofac 109.50 -36.3 - Foxtons 53.40 -9.2 - Oil Equipment & Services 5479.50 -15.2 -2.1
Carmax 124.30 7.87 6.76 Pearson 737.20 58.20 8.57 Unicredit 8.11 0.33 4.19 Tokyo Electric Power ,orporated 381.00 27.00 7.63 Entain 1270.00 -8.7 - Babcock Int 212.80 -18.4 - Mcbride 79.40 -7.9 - Fixed Line Telecommunication 1666.23 -3.4 3.4
Dr Horton 75.22 3.91 5.49 Mitchells & Butlers 276.50 21.50 8.43 Daimler Ag Na O.n. 57.91 2.31 4.15 Sharp 2035.00 107.00 5.55 Just Eat Takeaway.com N.v. 8010.00 -7.7 - Ao World 347.50 -14.0 - Superdry 210.00 -7.7 - Electricity 8992.35 -3.0 1.6
Invesco Ltd 21.36 1.11 5.48 Babcock Int 212.80 13.80 6.93 Thales 78.50 2.90 3.84 Toray Industries,. 704.90 36.40 5.45 Kingfisher 265.40 -6.2 - Wood (john) 313.90 -11.2 - Amigo Holdings 8.39 -7.7 2.7 General Retailers 2583.76 -2.7 2.0
Pultegroup 46.42 2.41 5.46 Hochschild Mining 207.00 13.40 6.92 Volkswagen Ag St O.n. 172.20 6.20 3.73 Yokohama Rubber Co Ltd 1693.00 81.00 5.02 Standard Chartered 469.20 -6.0 - Dunelm 1170.00 -9.7 - Capital & Regional 65.60 -7.6 - General Industrials 6802.54 -2.1 2.5
Smith (ds) 381.90 -5.8 - Iwg 324.00 -8.7 - Premier Oil 20.75 -7.3 4.2 Support Services 10055.37 -1.4 1.3
Downs Downs Downs Downs
Flutter Entertainment 14480.00 -5.3 - Premier Foods 99.00 -8.7 - Lindsell Train Investment Trust 1375.00 -6.5 -1.5 Index - Technology Hardware & Equipment 2030.95 -1.2 -2.5
Bank Of New York Mellon 42.61 -3.21 -7.01 Avon Rubber 3235.00 -185.00 -5.41 Merck Kgaa O.n. 142.70 -6.15 -4.13 Daiichi Sankyo , 3601.00 -149.00 -3.97
Barclays 146.32 -4.0 -2.4 Avon Rubber 3235.00 -8.1 - Dfs Furniture 226.00 -5.8 - Life Insurance 7506.71 -0.8 4.1
Us Ban 45.64 -2.44 -5.07 Wood (john) 313.90 -15.00 -4.56 Caixabank 2.14 -0.06 -2.73 Keio 8140.00 -330.00 -3.90
Ferguson 9020.00 -3.6 - Hilton Food 1044.00 -7.6 -5.7 Jpmorgan Japan Small Cap Growth & ome 554.00 -5.8 -7.4 Banks 2585.17 -0.8 3.4
Live Nation Entertainment 73.80 -2.74 -3.58 Ao World 347.50 -14.00 -3.87 Edf 12.08 -0.29 -2.34 Ana Holdings 2232.50 -77.50 -3.35
Sse 1520.50 -3.6 - Ferrexpo 324.40 -5.5 - Card Factory 37.90 -5.5 - Real Estate & Investment Servic 2510.79 -0.6 -3.2
Fastenal 48.68 -1.74 -3.45 Premier Foods 99.00 -3.80 -3.70 Novozymes B A/s 48.22 -0.87 -1.78 Odakyu Electric Railway Co., 3185.00 -110.00 -3.34
M&g 193.10 -3.5 - Provident Fin 271.00 -5.1 - Arrow Global 190.00 -4.9 -4.8 Nonlife Insurance 3273.13 -0.5 0.0
Technipfmc 11.35 -0.38 -3.20 Dixons Carphone 119.30 -4.10 -3.32 Endesa 22.04 -0.39 -1.74 Chugai Pharmaceutical Co., 5573.00 -189.00 -3.28
Auto Trader 567.00 -3.4 - Sabre Insurance 271.00 -4.9 0.7 Clipper Logistics 565.00 -4.6 - Beverages 23033.48 -0.3 1.2
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jan 20 Currency Mid Change Mid Change Mid Change Jan 20 Currency Mid Change Mid Change Mid Change Jan 20 Currency Mid Change Mid Change Mid Change Jan 20 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 86.3244 0.1301 104.4963 -0.0361 117.6739 0.3117 Indonesia Indonesian Rupiah 14030.0000 -35.0000 16983.4361 -73.9587 19125.1396 -25.7850 Poland Polish Zloty 3.7453 0.0108 4.5337 0.0047 5.1054 0.0205 ..Three Month 0.7337 -0.0008 0.8879 -0.0027 - -
Australia Australian Dollar 1.2914 -0.0070 1.5633 -0.0113 1.7604 -0.0074 Israel Israeli Shekel 3.2689 0.0206 3.9570 0.0176 4.4560 0.0331 Romania Romanian Leu 4.0267 0.0074 4.8743 0.0000 5.4890 0.0164 ..One Year 0.7339 -0.0008 0.8875 -0.0027 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4564 -0.0008 0.5139 0.0006 Japan Japanese Yen 103.5700 -0.3350 125.3722 -0.6389 141.1824 -0.2947 Russia Russian Ruble 73.4138 -0.3050 88.8679 -0.5348 100.0746 -0.3008 United States United States Dollar - - 1.2105 -0.0022 1.3632 0.0016
Bolivia Bolivian Boliviano 6.9100 - 8.3646 -0.0155 9.4194 0.0108 ..One Month 103.5700 -0.3351 125.3723 -0.6388 141.1824 -0.2947 Saudi Arabia Saudi Riyal 3.7519 0.0006 4.5416 -0.0078 5.1144 0.0066 ..One Month - - 1.2104 -0.1511 1.3632 0.0016
Brazil Brazilian Real 5.2982 -0.0268 6.4135 -0.0444 7.2223 -0.0282 ..Three Month 103.5699 -0.3352 125.3724 -0.6386 141.1823 -0.2948 Singapore Singapore Dollar 1.3255 -0.0032 1.6045 -0.0069 1.8068 -0.0024 ..Three Month - - 1.2103 -0.1511 1.3632 0.0016
Canada Canadian Dollar 1.2629 -0.0107 1.5287 -0.0158 1.7215 -0.0126 ..One Year 103.5695 -0.3360 125.3727 -0.6380 141.1824 -0.2950 South Africa South African Rand 14.8882 -0.0675 18.0222 -0.1153 20.2949 -0.0687 ..One Year - - 1.2095 -0.1511 1.3635 0.0016
Chile Chilean Peso 725.1000 -10.2950 877.7388 -14.1140 988.4268 -12.8872 Kenya Kenyan Shilling 110.2000 - 133.3979 -0.2475 150.2202 0.1718 South Korea South Korean Won 1100.3500 -2.6000 1331.9816 -5.6247 1499.9525 -1.8246 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.4681 -0.0201 7.8297 -0.0389 8.8171 -0.0173 Kuwait Kuwaiti Dinar 0.3036 0.0005 0.3675 -0.0001 0.4139 0.0011 Sweden Swedish Krona 8.3498 -0.0053 10.1075 -0.0252 11.3821 0.0057 Vietnam Vietnamese Dong 23073.0000 2.5000 27930.0743 -48.7625 31452.1785 39.3225
Colombia Colombian Peso 3469.9300 -14.1600 4200.3764 -24.9662 4730.0691 -13.8696 Malaysia Malaysian Ringgit 4.0450 -0.0050 4.8965 -0.0151 5.5140 -0.0005 Switzerland Swiss Franc 0.8907 0.0022 1.0782 0.0007 1.2142 0.0045 European Union Euro 0.8261 0.0015 - - 1.1261 0.0034
Costa Rica Costa Rican Colon 609.5100 0.2100 737.8163 -1.1144 830.8592 1.2363 Mexico Mexican Peso 19.5880 -0.0770 23.7114 -0.1374 26.7016 -0.0743 Taiwan New Taiwan Dollar 27.9975 0.0005 33.8912 -0.0623 38.1651 0.0443 ..One Month 0.8260 0.0015 - - 1.1261 0.0034
Czech Republic Czech Koruna 21.5510 -0.0124 26.0876 -0.0634 29.3774 0.0167 New Zealand New Zealand Dollar 1.3963 -0.0094 1.6902 -0.0146 1.9033 -0.0106 Thailand Thai Baht 29.9925 -0.0475 36.3061 -0.1250 40.8846 -0.0179 ..Three Month 0.8259 0.0015 - - 1.1260 0.0034
Denmark Danish Krone 6.1447 0.0107 7.4383 -0.0008 8.3763 0.0241 Nigeria Nigerian Naira 394.7500 -0.7500 477.8477 -1.7962 538.1071 -0.4057 Tunisia Tunisian Dinar 2.7005 -0.0057 3.2689 -0.0130 3.6811 -0.0036 ..One Year 0.8251 0.0015 - - 1.1256 0.0034
Egypt Egyptian Pound 15.7456 0.0651 19.0602 0.0436 21.4638 0.1132 Norway Norwegian Krone 8.5024 -0.0346 10.2923 -0.0610 11.5902 -0.0338 Turkey Turkish Lira 7.4053 -0.0450 8.9641 -0.0712 10.0945 -0.0497
Hong Kong Hong Kong Dollar 7.7517 0.0000 9.3835 -0.0174 10.5668 0.0122 Pakistan Pakistani Rupee 160.0000 -0.6000 193.6812 -1.0870 218.1055 -0.5675 United Arab Emirates UAE Dirham 3.6732 - 4.4464 -0.0083 5.0071 0.0057
Hungary Hungarian Forint 295.1467 0.2796 357.2772 -0.3238 402.3319 0.8409 Peru Peruvian Nuevo Sol 3.6145 0.0019 4.3754 -0.0058 4.9271 0.0082 United Kingdom Pound Sterling 0.7336 -0.0008 0.8880 -0.0027 - -
India Indian Rupee 73.0337 -0.1388 88.4079 -0.3323 99.5566 -0.0751 Philippines Philippine Peso 48.0550 -0.0150 58.1709 -0.1261 65.5066 0.0545 ..One Month 0.7336 -0.0008 0.8880 -0.0027 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Jan 20 Jan 19 Jan 18 Jan 15 Jan 14 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 2578.00 2559.40 2575.10 2576.00 2595.50 0.00 3314.70 1337.80 Oil Equipment & Serv 15.68 Health Care Eq & Srv 5.84 Pharmace & Biotech 3.24 FTSE 100 Price Change FTSE 100 Price Change
Jan 20 chge% Index Jan 19 Jan 18 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Mining 15.18 General Retailers 5.83 Software & Comp Serv 3.11 3I Group PLC 1147.5 18.00 Land Securities Group PLC 653.70 -1.10
FTSE 100 (101) 6740.39 0.41 5923.17 6712.95 6720.65 7651.44 3.51 1.56 18.29 2.24 6444.40 P/E Ratio net - - - - - 0.00 19.44 14.26 Oil & Gas 14.19 Industrial Transport 5.79 Technology 2.89 Admiral Group PLC 2920 2.00 Legal & General Group PLC 267.30 -0.60
FTSE 250 (250) 20881.46 1.35 18349.73 20602.89 20639.34 21847.04 2.22 1.40 32.14 9.38 16582.37 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Oil & Gas Producers 14.16 FTSE All{HY-}Share Index 5.63 FTSE 250 Index 2.81 Anglo American PLC 2675 49.00 Lloyds Banking Group PLC 35.79 -0.22
FTSE 250 ex Inv Co (183) 21391.93 1.39 18798.31 21098.94 21175.80 23140.79 2.19 1.27 35.82 10.26 17327.88 FT 30 hourly changes Basic Materials 13.80 Life Insurance 5.62 Consumer Goods 2.79 Antofagasta PLC 1534 23.00 London Stock Exchange Group PLC 9130 -6.00
FTSE 350 (351) 3841.79 0.57 3376.00 3819.83 3824.63 4298.98 3.28 1.54 19.80 1.36 7320.19 8 9 10 11 12 13 14 15 16 High Low Construct & Material 9.62 Consumer Services 5.47 Gas Water & Multi 2.65 Ashtead Group PLC 3710 40.00 M&G PLC 193.10 2.65
FTSE 350 ex Investment Trusts (282) 3740.84 0.53 3287.29 3721.13 3727.13 4242.46 3.36 1.41 21.07 1.34 3678.37 2559.4 2572.7 2569.2 2493.1 2399.1 2395.8 2394.3 2414 2426.7 2439.2 2366.1 Industrial Metals & 8.54 Industrial Eng 5.43 FTSE SmallCap Index 2.39 Associated British Foods PLC 2304 38.00 Melrose Industries PLC 184.50 1.00
FTSE 350 Higher Yield (146) 3073.39 0.70 2700.76 3052.07 3060.90 3722.91 4.66 1.45 14.82 1.12 6440.33 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Fixed Line Telecomms 7.25 Beverages 5.17 Equity Invest Instr 2.30 Astrazeneca PLC 7645 -77.00 Mondi PLC 1817 22.00
FTSE 350 Lower Yield (205) 4363.49 0.45 3834.45 4343.87 4342.26 4530.84 1.91 1.76 29.75 1.49 5165.01 Electricity 7.08 Industrials 5.17 Household Goods & Ho 2.29 Auto Trader Group PLC 567.00 4.40 Morrison (Wm) Supermarkets PLC 182.35 1.25
FTSE SmallCap (258) 6433.83 1.03 5653.78 6367.99 6357.16 6031.83 2.74 -0.72 -50.61 4.27 10237.67 Food & Drug Retailer 6.68 Support Services 4.92 Nonlife Insurance 1.63
FTSE SmallCap ex Inv Co (140) 5069.24 1.07 4454.63 5015.52 5009.61 4925.23 2.56 -0.55 -70.94 1.25 8429.23 FX: EFFECTIVE INDICES FTSE 100 Index 6.39 Leisure Goods 4.29 Personal Goods 1.42
Avast PLC 531.00 -9.00 National Grid PLC 873.60 -5.20
Aveva Group PLC 3780 10.00 Natwest Group PLC 156.50 -0.80
FTSE All-Share (609) 3816.31 0.59 3353.61 3793.91 3798.30 4245.57 3.26 1.48 20.77 1.39 7345.77 NON FINANCIALS Index 6.34 Tobacco 4.02 Tech Hardware & Eq 1.08
Jan 19 Jan 18 Mnth Ago Jan 20 Jan 19 Mnth Ago Aviva PLC 348.00 1.90 Next PLC 8112 128.00
FTSE All-Share ex Inv Co (422) 3677.57 0.54 3231.69 3657.83 3663.54 4159.15 3.34 1.39 21.59 1.31 3672.72 Telecommunications 6.32 Utilities 3.82 Real Est Invest & Tr 0.16 B&M European Value Retail S.A. 500.80 4.30 Ocado Group PLC 2572 -8.00
FTSE All-Share ex Multinationals (539) 1218.18 0.92 1078.24 1207.12 1211.86 1276.43 2.63 1.45 26.12 0.81 2443.05 Australia - - - Sweden - - - Electronic & Elec Eq 6.26 Media 3.77 Aerospace & Defense 0.09 Bae Systems PLC 491.40 5.60 Pearson PLC 737.20 58.20
FTSE Fledgling (90) 10970.79 0.26 9640.66 10942.02 10925.96 9971.24 2.17 0.98 46.86 8.16 22606.43 Canada - - - Switzerland - - - Banks 6.06 Financials 3.60 Real Est Invest & Se -0.17 Barclays PLC 146.32 -0.54 Pennon Group PLC 961.60 4.80
FTSE Fledgling ex Inv Co (42) 13179.76 0.10 11581.81 13166.53 13164.73 11849.62 1.85 5.94 9.09 6.07 26511.41 Denmark - - - UK 79.17 79.14 78.10 Mobile Telecomms 5.97 Health Care 3.50 Food Producers -0.50 Barratt Developments PLC 702.80 7.60 Pershing Square Holdings LTD 2630 30.00
FTSE All-Small (348) 4464.98 0.99 3923.63 4421.14 4413.67 4179.14 2.71 -0.65 -57.08 2.98 9115.17 Japan - - - USA - - - Travel & Leisure 5.95 Chemicals 3.38 Automobiles & Parts -8.27 Berkeley Group Holdings (The) PLC 4466 10.00 Persimmon PLC 2733 18.00
FTSE All-Small ex Inv Co (182) 3791.55 1.03 3331.86 3752.82 3748.56 3671.68 2.53 -0.36 -109.39 0.96 7986.26 New Zealand - - - Euro - - - Financial Services 3.25 Oil & Gas Producers -40.36 Bhp Group PLC 2169.5 58.50 Phoenix Group Holdings PLC 690.00 3.20
FTSE AIM All-Share (724) 1187.46 0.54 1043.49 1181.10 1174.23 963.40 0.73 0.31 445.19 0.26 1364.01 Norway - - -
BP PLC 302.85 1.60 Polymetal International PLC 1691.5 54.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 2747.5 7.50 Prudential PLC 1420.5 -14.00
Non Financials (300) 4577.04 0.65 4022.11 4547.39 4553.33 5081.54 3.35 1.38 21.57 1.63 7744.80 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 448.10 0.10 Reckitt Benckiser Group PLC 6238 14.00
Technology (19) 1020.72 1.40 1020.87 1006.64 1003.71 1077.32 1.23 0.07 1096.01 3.53 1080.61 Bt Group PLC 138.10 - Relx PLC 1831 8.00
Software and Computer Services (17) 1013.86 1.44 1014.01 999.50 996.52 1073.52 1.26 0.04 1927.00 3.60 1074.60 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 2420 -10.00 Rentokil Initial PLC 519.20 -1.20
Technology Hardware and Equipment (2) 1225.81 -0.02 1225.99 1226.08 1225.74 1130.82 0.27 5.75 63.78 0.00 1271.59 Burberry Group PLC 1805 67.00 Rightmove PLC 614.60 8.20
Jan 19 No of US $ Day Mth YTD Total
YTD Gr Div Jan 19 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 2297 -9.00 Rio Tinto PLC 6034 117.00
Telecommunications (8) 652.93 0.17 653.03 651.84 651.15 795.66 7.07 0.59 23.83 0.00 769.79
Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 1417 18.50 Rolls-Royce Holdings PLC 107.40 2.75
Telecommunications Equipment (2) 2653.44 1.02 2653.83 2626.66 2663.77 2145.29 1.37 3.38 21.56 0.00 2822.57
Telecommunications Service Providers (6) 635.11 0.13 635.20 634.26 633.22 784.24 7.29 0.57 23.93 0.00 750.46 FTSE Global All Cap 8952 746.35 0.8 3.6 2.5
2.6 1150.98
1.8 Oil Equipment & Services 25 209.41 1.4 1.4 10.6 355.55 10.7 5.3 Crh PLC 3295 17.00 Royal Dutch Shell PLC 1477 5.60
Health Care (15) 1236.51 -0.87 1236.69 1247.33 1235.44 1390.35 3.58 1.12 24.93 0.14 1373.58 FTSE Global All Cap 8952 740.29 0.0 2.8 1.7
1.8 1141.62
1.8 Basic Materials 353 633.65 0.3 0.3 3.9 1076.71 3.9 2.5 Croda International PLC 6306 2.00 Royal Dutch Shell PLC 1418 5.80
Health Care Providers (4) 416.80 1.70 416.86 409.82 409.99 675.65 1.76 0.41 137.12 2.65 433.61 FTSE Global Large Cap 1725 665.40 0.9 3.4 2.2
2.2 1056.91
1.9 Chemicals 163 892.13 0.5 0.5 2.5 1501.03 2.5 2.3 Dcc PLC 5884 100.00 Rsa Insurance Group PLC 676.40 0.20
Medical Equipment and Services (2) 1211.30 2.66 1211.47 1179.87 1146.10 1348.28 1.85 1.09 49.45 0.00 1287.30 FTSE Global Mid Cap 2228 942.71 0.5 3.2 2.8
2.8 1367.76
1.8 Forestry & Paper 20 326.60 -0.1 -0.1 3.3 621.51 3.3 2.4 Diageo PLC 2935.5 9.00 Sage Group PLC 573.00 12.80
Pharmaceuticals and Biotechnology (9) 1280.07 -1.25 1280.25 1296.26 1285.98 1427.98 3.78 1.13 23.41 0.00 1431.04 FTSE Global Small Cap 4999 1053.82 0.8 5.8 4.7
4.7 1469.53
1.5 Industrial Metals & Mining 92 496.05 0.1 0.1 5.9 851.91 5.9 2.7 Entain PLC 1270 25.00 Sainsbury (J) PLC 240.20 2.00
FTSE All-World 3953 435.60 0.8 3.3 2.3
2.3 710.97
1.9 Mining 78 926.32 0.3 0.3 5.2 1607.65 5.2 2.9 Evraz PLC 519.00 15.20 Schroders PLC 3493 61.00
Financials (251) 850.89 0.36 851.01 847.81 847.63 943.57 3.06 2.17 15.02 0.20 940.06
FTSE World 2564 770.41 0.7 2.9 1.8
1.9 1687.87
1.9 Industrials 736 534.96 0.5 0.5 2.1 824.53 2.1 1.5 Experian PLC 2646 -33.00 Scottish Mortgage Investment Trust PLC 1267 26.00
Banks (11) 558.38 -0.69 558.46 562.28 561.41 798.73 3.68 2.22 12.27 0.00 609.88
FTSE Global All Cap ex UNITED KINGDOM In 8661 789.19 0.8 3.6 2.5
2.6 1195.16
1.8 Construction & Materials 141 635.90 0.7 0.7 3.2 1028.86 3.2 1.8 Ferguson PLC 9020 -10.00 Segro PLC 969.60 8.40
Finance and Credit Services (8) 1142.39 0.85 1142.55 1132.75 1140.11 1184.10 3.31 3.98 7.59 0.00 1220.73
FTSE Global All Cap ex USA 7204 583.10 0.8 4.5 3.4
3.5 981.32
2.3 Aerospace & Defense 36 720.82 0.3 0.3 -1.7 1094.15 -1.7 2.1 Flutter Entertainment PLC 14480 80.00 Severn Trent PLC 2343 13.00
Investment Banking and Brokerage Services (32) 1108.29 1.22 1108.45 1094.88 1101.29 1147.27 3.16 0.97 32.76 0.52 1231.12
FTSE Global All Cap ex JAPAN 7559 770.57 0.8 3.6 2.6
2.6 1199.51
1.8 General Industrials 71 259.18 0.9 0.9 2.4 437.98 2.4 2.2 Fresnillo PLC 1090.5 14.00 Smith & Nephew PLC 1668.5 44.50
Closed End Investments (187) 1306.57 1.28 1306.76 1290.05 1284.42 1134.63 2.18 3.34 13.75 0.63 1413.09
FTSE Global All Cap ex Eurozone 8315 786.91 0.9 3.8 2.7
2.7 1188.55
1.8 Electronic & Electrical Equipment 139 716.12 1.1 1.1 7.0 1000.95 7.0 1.2 Glaxosmithkline PLC 1379.8 -30.60 Smith (Ds) PLC 381.90 -2.00
Life Insurance (6) 846.76 -0.36 846.88 849.82 851.59 891.91 3.52 1.98 14.36 0.00 967.70
FTSE Developed 2133 703.55 0.7 2.7 1.7
1.7 1094.08
1.8 Industrial Engineering 145 1075.88 0.3 0.3 5.0 1651.06 5.0 1.4 Glencore PLC 280.30 6.55 Smiths Group PLC 1518.5 22.00
Nonlife Insurance (7) 1003.15 0.16 1003.30 1001.53 1004.09 997.01 2.94 1.86 18.27 0.00 1111.71
FTSE Developed All Cap 5610 740.64 0.7 3.0 2.0
2.1 1135.48
1.8 Industrial Transportation 122 919.05 -0.6 -0.6 0.2 1425.38 0.2 1.6 Halma PLC 2526 27.00 Smurfit Kappa Group PLC 3590 18.00
Real Estate (58) 850.28 0.79 850.40 843.61 850.40 1035.46 2.49 -2.00 -20.12 1.31 944.78
FTSE Developed Large Cap 830 657.33 0.8 2.6 1.4
1.5 1040.32
1.9 Support Services 82 634.40 0.6 0.6 -1.3 922.41 -1.3 1.1 Hargreaves Lansdown PLC 1633 33.00 Spirax-Sarco Engineering PLC 11570 180.00
Real Estate Investment and Services (18) 853.85 1.11 853.97 844.50 841.58 1031.18 1.01 3.06 32.33 0.00 910.13
FTSE Developed Europe Large Cap 224 398.71 0.3 2.0 1.5
1.6 745.82
2.5 Consumer Goods 531 618.70 0.6 0.6 1.2 999.83 1.3 2.0 Hikma Pharmaceuticals PLC 2539 43.00 Sse PLC 1520.5 3.50
Real Estate Investment Trusts (40) 851.11 0.71 851.23 845.10 854.38 1035.47 2.87 -2.45 -14.24 1.65 952.59
FTSE Developed Europe Mid Cap 343 706.27 0.1 2.4 1.1
1.2 1155.71
2.0 Automobiles & Parts 129 673.25 1.9 1.9 9.9 1059.32 9.9 1.3 HSBC Holdings PLC 408.00 -3.45 St. James's Place PLC 1179.5 18.50
Consumer Discretionary (91) 919.12 1.46 919.25 905.92 915.22 1055.11 1.84 1.62 33.67 0.01 999.00
FTSE Dev Europe Small Cap 690 980.20 0.4 4.1 1.7
1.7 1544.87
1.8 Beverages 67 709.72 0.0 0.0 -4.0 1157.27 -4.0 2.4 Imperial Brands PLC 1633 29.50 Standard Chartered PLC 469.20 -7.40
Automobiles and Parts (3) 429.34 2.84 429.40 417.49 419.49 543.07 0.35 5.17 54.89 0.00 452.26
FTSE North America Large Cap 224 837.26 0.8 2.0 0.8
0.9 1223.30
1.6 Food Producers 132 708.94 0.0 0.0 -1.2 1168.56 -1.2 2.4 Informa PLC 541.80 19.00 Standard Life Aberdeen PLC 309.10 10.80
Consumer Services (4) 908.96 1.37 909.09 896.63 901.45 1239.85 2.72 0.47 79.12 0.00 965.49
FTSE North America Mid Cap 412 1095.49 0.6 3.4 3.3
3.3 1475.80
1.6 Household Goods & Home Construction 61 567.41 -0.1 -0.1 -1.5 910.43 -1.5 2.1 Intercontinental Hotels Group PLC 4826 -32.00 Taylor Wimpey PLC 165.25 2.95
Household Goods and Home Construction (12) 944.63 1.01 944.77 935.22 940.93 1153.81 2.85 2.10 16.69 0.00 1089.23
FTSE North America Small Cap 1292 1215.86 1.0 6.9 6.3
6.3 1579.61
1.3 Leisure Goods 44 337.61 1.4 1.4 2.3 465.94 2.3 1.0 Intermediate Capital Group PLC 1722 23.00 Tesco PLC 242.30 0.20
Leisure Goods (2) 1228.69 0.82 1228.87 1218.70 1224.72 904.16 1.66 1.62 37.04 0.00 1366.10
FTSE North America 636 548.46 0.8 2.3 1.3
1.4 818.80
1.6 Personal Goods 84 1027.20 -0.3 -0.3 -2.6 1532.49 -2.6 1.4 International Consolidated Airlines Group S.A. 161.85 2.20 Unilever PLC 4353 -28.00
Personal Goods (4) 890.08 3.55 890.22 859.61 863.80 1065.76 1.98 2.14 23.56 0.00 932.59
FTSE Developed ex North America 1497 299.83 0.6 3.4 2.3
2.4 543.53
2.3 Tobacco 14 914.83 0.4 0.4 0.7 2326.36 0.7 6.7 Intertek Group PLC 5556 60.00 United Utilities Group PLC 936.80 7.60
Media (11) 910.17 1.98 910.31 892.54 896.83 1052.16 1.75 3.03 18.85 0.02 991.94
FTSE Japan Large Cap 178 464.88 0.6 3.8 2.5
2.5 653.00
2.0 Health Care 309 707.29 0.9 0.9 3.1 1090.66 3.1 1.7 Jd Sports Fashion PLC 830.60 11.20 Vodafone Group PLC 127.14 0.14
Retailers (21) 1064.73 1.26 1064.89 1051.47 1069.09 995.09 1.29 2.01 38.52 0.00 1147.01
FTSE Japan Mid Cap 335 658.49 0.1 2.3 2.2
2.2 876.86
2.0 Health Care Equipment & Services 113 1417.09 0.2 0.2 1.8 1708.56 1.9 0.7 Johnson Matthey PLC 2916 179.00 Whitbread PLC 3152 49.00
Travel and Leisure (34) 824.43 1.16 824.55 814.99 827.94 974.79 1.42 0.21 340.65 0.00 884.36
FTSE Global wi JAPAN Small Cap 880 713.41 -0.3 0.6 0.0
0.0 984.07
2.1 Pharmaceuticals & Biotechnology 196 461.80 1.3 1.3 3.9 757.18 3.9 2.3 Just Eat Takeaway.Com N.V. 8010 154.00 Wpp PLC 810.80 21.00
Consumer Staples (27) 841.92 0.08 842.04 841.26 839.71 924.02 4.00 1.42 17.55 0.00 945.76
FTSE Japan 513 191.68 0.5 3.5 2.5
2.5 301.38
2.0 Consumer Services 440 690.44 0.5 0.5 0.1 967.67 0.1 1.0 Kingfisher PLC 265.40 3.00
Beverages (6) 1060.48 0.32 1060.64 1057.05 1049.21 1191.39 2.44 1.62 25.29 0.00 1138.52
FTSE Asia Pacific Large Cap ex Japan 923 938.04 2.0 9.5 7.3
7.3 1624.83
1.9 Food & Drug Retailers 69 311.18 -0.4 -0.4 4.2 472.64 4.3 2.4
Food Producers (10) 852.01 0.83 852.14 844.99 846.51 974.53 2.56 1.79 21.81 0.00 908.02
FTSE Asia Pacific Mid Cap ex Japan 893 1070.35 1.7 5.9 4.2
4.2 1780.54
2.4 General Retailers 148 1278.33 0.6 0.6 1.0 1721.74 1.0 0.6
Tobacco (2) 540.76 0.58 540.84 537.65 540.28 673.96 8.10 1.32 9.35 0.00 671.45
Industrials (92) 1090.20 0.83 1090.36 1081.18 1084.30 1069.39 1.69 0.83 71.40 0.66 1165.30
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1842
1816
665.08
730.71
1.3
2.0
3.9
9.2
2.3
2.3
7.0
7.0
1081.36
2.2 Media
1344.64
2.0 Travel & Leisure
84 454.91
139 492.01
0.3
0.7
0.3
0.7
-3.1 641.89
-1.2 704.94
-3.0
-1.2
1.0
1.7
UK STOCK MARKET TRADING DATA
Construction and Materials (17) 1057.85 0.47 1058.00 1052.89 1047.68 1019.97 1.78 0.14 402.90 0.00 1147.54 Jan 20 Jan 19 Jan 18 Jan 15 Jan 14 Yr Ago
FTSE Emerging All Cap 3342 949.69 1.4 8.0 6.7
6.8 1562.68
2.0 Telecommunication 91 155.83 0.2 0.2 1.2 341.29 1.7 4.5
Aerospace and Defense (9) 738.83 1.70 738.94 726.47 727.43 1091.46 3.09 -2.01 -16.12 0.27 796.84 - - - - - -
FTSE Emerging Large Cap 895 922.22 1.5 8.8 7.5
7.5 1527.14
1.9 Fixed Line Telecommuniations 40 116.59 -0.6 -0.6 0.3 287.74 1.1 5.8
Electronic and Electrical Equipment (10) 1294.24 1.93 1294.43 1269.79 1284.20 1148.78 1.37 1.87 39.01 0.00 1369.88 Order Book Turnover (m) 211.06 63.91 683.20 683.20 683.20 338.61
FTSE Emerging Mid Cap 925 1084.35 1.1 4.3 3.6
3.6 1784.17
2.7 Mobile Telecommunications 51 188.43 1.1 1.1 2.3 359.47 2.3 3.0
General Industrials (9) 1181.92 0.52 1182.09 1175.76 1184.73 997.58 1.93 1.32 39.30 0.00 1273.09 Order Book Bargains 881166.00 642809.00 987046.00 987046.00 987046.00 900898.00
FTSE Emerging Small Cap 1522 880.70 0.9 4.9 3.3
3.3 1389.54
2.4 Utilities 190 323.62 0.1 0.1 0.9 711.35 1.0 3.2
Industrial Engineering (4) 1441.26 0.99 1441.47 1427.10 1434.40 1127.37 0.58 4.28 40.04 0.00 1511.31 Order Book Shares Traded (m) 1436.00 932.00 1484.00 1484.00 1484.00 1404.00
FTSE Emerging Europe 76 389.93 -0.2 5.9 5.3
5.4 740.64
4.7 Electricity 130 365.66 0.1 0.1 1.3 792.99 1.5 3.2
Industrial Support Services (32) 1099.19 0.34 1099.35 1095.44 1098.13 1094.34 1.31 2.08 36.64 1.34 1167.03 Total Equity Turnover (£m) 6182.03 4680.61 6778.13 6778.13 6778.13 5371.09
FTSE Latin America All Cap 244 829.11 -1.7 0.4 0.9
1.0 1422.16
2.4 Gas Water & Multiutilities 60 320.94 0.2 0.2 0.1 726.94 0.1 3.1
Industrial Transportation (11) 1361.35 1.58 1361.55 1340.16 1339.23 1005.65 1.79 2.09 26.79 1.79 1469.41 Total Mkt Bargains 1154317.00 882151.00 1271124.00 1271124.00 1271124.00 1172612.00
FTSE Middle East and Africa All Cap 321 682.81 1.0 3.7 4.6
4.6 1180.39
2.9 Financials 866 259.26 0.5 0.5 2.7 471.49 2.8 2.7
Basic Materials (25) 1451.45 2.24 1451.66 1419.60 1432.19 1152.26 3.17 2.68 11.78 0.07 1680.31 FTSE Global wi UNITED KINGDOM All Cap In 291 326.84 0.1 3.8 3.1
3.1 624.75
3.4 Banks 271 194.23 0.1 0.1 5.3 387.81 5.5 3.2 Total Shares Traded (m) 8385.00 9226.00 9471.00 9471.00 9471.00 9480.00
Industrial Materials (1) 938.47 0.00 938.60 938.47 938.47 845.06 0.49 6.38 31.83 0.00 1035.18 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
FTSE Global wi USA All Cap 1748 956.96 0.8 2.9 1.9
1.9 1349.21
1.5 Nonlife Insurance 74 300.80 0.5 0.5 0.5 473.51 0.7 2.8
Industrial Metals and Mining (12) 1589.22 2.20 1589.46 1555.05 1569.51 1252.40 3.34 2.80 10.68 0.10 1879.95 (c) Market closed.
FTSE Europe All Cap 1408 478.46 0.2 2.4 1.5
1.6 860.50
2.4 Life Insurance 53 250.29 1.5 1.5 7.7 449.32 7.7 3.1
Precious Metals and Mining (5) 1276.30 3.15 1276.49 1237.28 1249.62 936.85 3.30 1.07 28.24 0.00 1403.10
FTSE Eurozone All Cap 637 467.34 0.3 1.3 0.8
0.9 837.27
2.0 Financial Services 209 423.36 0.7 0.7 0.8 623.66 0.8 1.6
Chemicals (7) 1045.30 2.21 1045.45 1022.68 1027.04 923.23 1.49 2.01 33.36 0.00 1112.69
FTSE EDHEC-Risk Efficient All-World 3953 483.72 0.6 3.3 2.5
2.5 729.49
2.1 Technology 309 531.98 1.7 1.7 2.2 682.63 2.3 0.8
Energy (13) 547.79 0.38 547.87 545.69 544.72 868.25 5.74 1.19 14.58 0.00 645.16 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
FTSE EDHEC-Risk Efficient Developed Europe 567 377.70 0.2 2.3 1.1
1.2 630.37
2.1 Software & Computer Services 166 844.36 1.7 1.7 0.5 1011.12 0.5 0.5
Oil. Gas and Coal (13) 548.56 0.38 548.64 546.46 545.48 869.46 5.74 1.19 14.58 0.00 646.07 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Oil & Gas 128 284.36 1.4 8.6 10.2
10.3 532.33
4.6 Technology Hardware & Equipment 143 444.67 1.7 1.7 4.3 609.10 4.3 1.2
Utilities (10) 984.85 0.08 984.99 984.02 982.21 1092.69 4.92 1.15 17.70 3.66 1176.94 Oil & Gas Producers 92 267.34 1.4 8.6 10.6
10.8 511.36
4.7 Alternative Energy 11 273.71 2.1 2.1 1.9 389.02 1.9 0.6 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Real Estate Investment & Services 162 366.45 2.3 2.3 2.2 676.05 2.2 2.7 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment Trusts 97 447.58 -0.3 -0.3 -1.6 987.18 -1.5 3.7 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6720.00 6726.04 6730.39 6719.54 6708.71 6709.86 6716.76 6731.00 6733.82 6751.43 6697.54 FTSE Global Large Cap 1725 659.57 0.0 0.0 1.3 1047.63 1.3 1.9
FTSE 250
FTSE SmallCap
20713.96 20778.23 20786.33 20847.09 20779.53 20800.02 20806.11 20852.81 20848.82 20881.46 20644.13
6375.09 6390.44 6393.38 6397.02 6395.22 6397.69 6400.06 6409.35 6412.62 6433.83 6375.09
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/
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®
Data provided by Morningstar | www.morningstar.co.uk
FTSE All-Share 3800.71 3805.75 3808.01 3805.11 3798.08 3799.29 3802.63 3810.70 3811.90 3819.62 3788.93 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.
Time of FTSE 100 Day's high:15:07:45 Day's Low08:18:30 FTSE 100 2010/11 High: 6873.26(08/01/2021) Low: 6571.88(04/01/2021) 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
Time of FTSE All-Share Day's high:15:08:00 Day's Low08:19:00 FTSE 100 2010/11 High: 3880.43(08/01/2021) Low: 3724.50(04/01/2021) 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,
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the 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.
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 Autins Group Pre 21.517 26.860 1.760L 1.544L 4.350L 6.250L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Van Elle Holdings Int 38.323 48.524 0.721L 0.919 0.500L 0.900 0.00000 0.00000 - 0.000 1.000 01/13 10.00 AIM NGHT Nightcap PLC 14.50 1.30 15.00 10.90 1961.3
There are currently no rights offers by any companies listed on the LSE. 12/30 0.10 WCAT Wildcat Petroleum PLC 0.90 -0.15 1.57 0.20 2160.0
12/29 38.00 AIM VCAP Vector Capital PLC 38.50 -1.48 41.95 37.02 1619.0
12/24 3.00 PNPL Pineapple Power Corp PLC 11.00 -2.36 14.50 3.35 631.0
12/23 10.00 OHG One Heritage Group PLC 26.50 -0.50 28.91 11.43 795.0
12/22 1.00 RNEW Ecofin US Renewables Infrastructure Trust PLC 1.03 0.00 1.03 1.00 128.8
12/22 100.00 SBSI Schroder BSC Social Impact Trust PLC 103.50 1.17 105.00 100.00 7762.5
12/15 96.00 AIM ABDX Abingdon Health PLC 93.50 -0.62 109.93 91.00 8947.9
12/14 20.00 AIM IIG Intuitive Investments Group PLC 22.50 -0.20 24.00 21.00 909.4
12/11 45.00 TGR Tirupati Graphite PLC 86.50 -1.50 90.00 45.00 6466.3

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.
Thursday 21 January 2021 ★ FINANCIAL TIMES 13

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T♦ 28.86 -0.09 39.14 26.08 7.60 18.13 205671.32 Lowes♦ 173.09 2.33 180.67 60.00 1.37 23.12 126827
ANZ 24.46 -0.22 27.29 14.10 4.19 20.67 53896.1 Nokia 3.43 0.12 4.35 2.08 - 25.31 23444.35 AstellasPh 1678 17.50 1987 0.00 2.53 21.57 30163.93 AtlasCpcoB 399.90 6.40 416.20 223.20 1.64 33.19 18688.9 AutomData 161.81 -0.17 182.32 103.11 2.37 26.64 69386.39 Lyondell 93.86 0.04 99.86 33.71 4.72 25.07 31341.64
BHPBilltn 46.30 0.43 47.55 24.05 4.34 20.70 105615.52 SampoA 35.75 0.47 42.46 21.34 4.29 16.13 23981.27 Bridgestne 4066 13.00 4070 2861.5 3.31 35.24 28018.7 Ericsson 98.94 1.20 110.15 59.54 1.49 23.17 36406.02 Avago Tech 463.29 4.02 465.79 155.67 2.96 69.42 188424.09 Marathon Ptl 45.55 -0.54 60.35 15.26 5.25 -2.82 29638.64
CmwBkAu 84.37 -0.74 91.05 53.44 5.01 21.24 115904.72 France (€) Canon 2225.5 42.50 3097 0.00 5.58 36.43 28659.75 H&M 184.00 0.65 214.35 98.13 2.60 104.29 32188.04 BakerHu 22.08 0.09 31.26 20.09 3.24 -1.40 11412.93 Marsh&M 113.37 1.15 120.97 74.34 1.70 27.01 57500.19
CSL 270.93 -0.21 342.75 242.67 1.06 41.07 95450.87 Airbus Grpe 92.41 1.11 139.40 48.12 - -11.32 87717.27 CntJpRwy 14695 -135.00 22570 0.00 0.99 103.89 29228.25 Investor 624.00 4.00 627.20 370.10 2.05 6.16 34039.39 BankAm 32.25 -0.53 35.45 17.95 2.35 15.14 278944.71 MasterCard♦ 336.49 10.55 367.25 199.99 0.48 47.92 332610.42
NatAusBk 23.91 -0.11 27.49 13.20 4.61 22.20 61045.21 AirLiquide 131.00 -1.35 144.45 94.86 2.11 26.83 75111.43 Denso 5993 43.00 6219 0.00 2.42 -41.84 45593.84 Nordea Bk 71.15 0.25 86.73 48.00 - 12.31 34510.29 Baxter 78.98 0.15 95.19 69.10 1.24 42.32 40344.44 McDonald's 211.96 2.87 231.91 124.23 2.49 30.69 157933.73
Telstra 3.15 0.01 3.94 2.66 3.11 20.99 29010.01 AXA 19.72 0.07 25.62 11.84 3.79 16.63 57718.15 EastJpRwy 6778 -57.00 10040 0.00 2.02 -9.72 24733.28 SEB 90.18 0.74 104.90 59.80 - 12.13 23436.77 BectonDick 260.24 -0.53 286.72 197.75 1.28 91.07 75691.22 McKesson 183.15 0.68 187.67 112.60 0.95 13.50 29407.37
Wesfarmers 51.45 0.25 52.20 29.75 2.92 36.61 45172.39 BNP Parib 44.42 0.31 54.22 24.51 - 7.82 67202.58 Fanuc 27525 395.00 27815 0.00 0.72 83.24 53663.28 SvnskaHn 86.98 0.20 113.80 71.70 - 11.22 20258.78 BerkshHat 351574.87 -899.12 354837 239440 - 15.13 228236.78 Medtronic 118.88 0.57 122.15 72.13 1.99 43.20 160011.35
Westpc 21.58 -0.02 25.96 13.47 3.62 34.71 61303.71 ChristianDior 441.40 8.80 479.80 252.40 1.11 42.69 96448.39 FastRetail 91110-1860.00 95310 0.00 0.52 103.70 93312.45 Swedbank 158.88 3.02 162.70 99.14 - 14.12 21539.8 Biogen 270.45 -3.39 374.99 223.25 - 8.46 41617.28 Merck 83.03 -0.17 90.97 65.25 3.10 17.38 210056.11
Woolworths 39.51 -0.02 43.96 32.12 2.56 43.69 38713.11 Cred Agr 10.21 0.16 13.80 5.70 - 7.32 36030.53 Fuji Hvy Ind 2055 32.00 2945 1671.5 2.82 14.10 15261.72 Telia Co 36.63 1.43 42.41 30.29 5.59 49.65 17940.93 BkNYMeln 42.61 -3.21 47.63 26.40 3.07 8.90 37758.25 Metlife 51.44 -0.69 53.28 22.85 3.69 7.94 46288.85
Belgium (€) Danone 55.28 -0.90 74.50 46.03 - 18.56 45947.08 Hitachi 4359 -22.00 4616 0.00 2.37 27.03 40735.85 Volvo 217.00 4.50 218.50 95.00 - 26.74 41200.81 BlackRock 734.38 0.73 788.00 323.98 2.04 23.14 112000.81 Microsoft 223.91 7.47 232.86 132.52 0.96 34.251692870.65
AnBshInBv 56.24 -0.11 72.08 29.03 2.34-112.20 115274.11 EDF 12.08 -0.29 13.61 5.98 1.27 22.27 45329.97 HondaMtr 2849 15.50 3167 0.00 3.12 19.23 49828.72 Boeing 211.74 1.03 349.95 89.00 2.05 -25.48 119533.52 Mnstr Bvrg 89.69 -0.39 95.11 50.06 - 38.32 47348.85
Switzerland (SFr)
KBC Grp 60.00 0.54 73.56 33.44 1.70 15.72 30264.7 Engie SA 13.45 -0.14 16.80 8.63 - -29.19 39634.92 JapanTob 2023 -10.00 2411.5 0.00 7.88 11.96 39065.36 Booking Holdings 2138.59 -24.45 2290.04 1107.29 - 61.09 87585.77 MondelezInt 56.71 -0.44 60.00 41.19 2.18 25.37 81097.38
ABB 26.37 0.18 27.20 14.11 2.97 122.08 64190.05
EssilorLuxottica 124.50 1.40 144.35 86.76 - -4054.20 66161.77 KDDI 3183 -31.00 3451 2604 3.90 10.65 70813.98 BrisMySq♦ 66.18 -0.56 68.34 45.76 2.87-209.22 149744.81 Monsanto - - - - - - -
Brazil (R$) CredSuisse 12.26 0.09 13.75 6.18 1.16 7.84 33678.17
Hermes Intl 868.20 5.80 898.20 516.00 0.54 80.32 110949.48 Keyence 56470-1290.00 59090 28905 0.37 71.98 132605.37 CapOne 111.67 -1.19 115.48 38.00 1.23 51.41 51077.53 MorganStly 75.13 0.14 77.76 27.20 1.96 12.04 135925.06
Ambev 16.04 -0.23 19.08 10.36 3.03 29.56 47637.13 Nestle 100.82 0.22 112.62 83.37 2.78 20.82 326105.78
LOreal 293.60 -3.50 321.40 196.00 1.34 49.62 198977.55 MitsbCp 2678 7.00 2948 0.00 5.22 10.28 38416.21 CardinalHlth 54.85 0.04 60.69 39.05 3.72 16.36 16094.12 MylanNV 15.86 0.31 23.11 12.75 - 29.73 8586.21
Bradesco 22.88 -0.28 30.55 14.05 1.08 7.46 19152.79 Novartis 86.01 0.49 96.38 65.09 3.32 29.64 238230.5
LVMH 507.70 16.65 525.30 278.70 0.97 56.43 310210.99 MitsubEst 1645.5 -5.50 2283 0.00 1.89 14.22 22105.16 Carnival 20.68 -0.19 51.38 7.80 4.92 -1.95 14900.06 Netflix 576.09 74.32 577.77 290.25 - 88.26 254513.69
Cielo 3.75 -0.02 7.68 3.23 0.79 23.05 1922.93 Richemont 85.88 2.34 87.94 44.64 1.19 197.92 50330.48
Orange 9.66 - 13.55 8.63 5.30 9.63 31111.81 MitsubishiEle 1668.5 33.00 1693.5 0.00 2.23 19.34 34591.16 Caterpillar♦ 191.11 -2.95 200.17 87.50 2.27 30.01 103823.94 NextEraE 84.11 1.30 84.16 43.70 1.71 40.29 41194.43
ItauHldFin 27.13 -0.45 31.64 19.46 3.05 14.48 25389.47 Roche 320.00 1.80 357.85 265.75 2.92 20.64 252408.29
PernodRic 154.15 -2.15 170.40 112.25 2.07 119.52 48866.08 MitsuiFud 2044 -29.00 3035 1538 2.23 15.22 19050.26 Celgene 108.24 0.11 110.70 58.59 - 12.71 77035.98 Nike 141.64 2.37 147.95 60.00 0.70 82.32 180097.46
Petrobras 28.87 -0.25 33.00 10.50 1.82 -8.07 40554.08 Swiss Re 83.18 -0.48 117.05 52.68 7.16 -18.20 29650.19
Renault 34.82 0.64 39.78 12.77 - -1.10 12462.86 MitUFJFin 489.70 -4.90 583.00 380.00 5.38 19.78 64218.39 CharlesSch 58.81 -0.42 62.04 28.00 1.27 25.82 105694.05 NorfolkS 251.13 1.29 258.17 112.62 1.58 30.69 68886.49
Vale 92.37 -1.69 103.35 32.45 4.71 33.07 92130.7 Swisscom 473.90 -0.20 577.80 446.70 4.75 14.48 27561.4
Safran 114.90 1.65 152.30 51.10 - 71.95 59423.08 Mizuho Fin 1411 -21.50 1663 1084 3.03 44.33 34593.83 Charter Comms 644.97 11.70 681.71 345.67 - 48.66 128913.46 Northrop 300.26 2.24 385.01 263.31 1.95 19.41 50058.14
Canada (C$) Syngent 453.40 0.90 471.20 402.50 - 28.99 43035.76
Sanofi 82.35 -0.88 95.82 67.65 3.92 9.09 125500.94 Murata Mfg 10370 40.00 10660 0.00 1.05 33.37 67663.9 Chevron Corp 95.08 0.57 115.15 51.60 5.61 -14.69 177545.11 NXP 174.49 -0.51 182.55 58.41 0.91-318.24 48813.51
BCE 55.08 -0.20 65.28 46.03 5.96 21.92 39441.29 UBS 13.30 0.08 13.81 7.00 2.55 9.31 57602.04
Sant Gbn 43.25 0.54 43.99 16.41 2.93 17.57 27888.36 NipponTT 2712 -8.00 2908 2127 3.72 11.32 102142.9 Chubb 155.41 0.05 167.74 87.35 2.08 29.24 70147.49 Occid Pet 22.94 -0.13 45.45 8.52 7.35 -1.37 21361.85
BkMontrl 99.75 -0.75 104.75 55.76 4.24 13.23 51066.35 Zurich Fin 376.00 1.20 439.90 248.70 5.44 17.46 63515.24
Schneider 123.20 0.55 128.15 61.72 2.12 30.46 84569.48 Nissan Mt 556.20 11.90 641.20 311.20 - -1.97 22666.42 Cigna 225.10 4.30 227.25 118.50 0.02 14.96 81319.46 Oracle♦ 61.74 0.45 66.20 39.71 1.59 18.38 181764.66
BkNvaS♦ 70.56 -0.20 74.92 46.38 5.09 13.33 67685.98 Nomura 568.00 -9.80 599.00 367.40 4.55 7.26 17733.54 Taiwan (NT$) Cisco 45.27 0.08 50.28 32.40 3.33 17.38 191288.61 Pepsico 141.06 -1.00 148.77 101.42 2.96 26.49 194938.78
SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81
Brookfield 49.35 0.60 60.48 31.35 1.26-1010.80 61580.1 Nppn Stl 1353.5 -15.00 1722 0.00 5.97 4.37 12419.24 Chunghwa Telecom 109.00 -1.50 120.00 103.00 3.95 25.10 30201.29 Citigroup 62.90 -0.79 80.91 32.00 3.42 11.65 130957.35 Perrigo 43.27 -0.20 63.86 40.01 2.16-820.64 5905.98
SocGen 17.08 0.10 32.11 10.77 - -20.40 17647.99
CanadPcR♦ 445.91 -1.36 482.74 252.00 0.77 26.53 47423.3 NTTDCMo 3880 - 3928 2678 3.25 19.99 120882.79 Formosa PetChem 95.20 -2.70 104.00 66.10 3.10 208.04 32391.12 CME Grp 189.97 -2.23 225.36 131.80 1.83 30.03 68196.85 Pfizer 36.56 -0.17 43.08 26.41 4.33 22.37 203235.55
Total 37.35 0.20 48.96 21.12 7.06 -19.05 119938.16
CanImp♦ 112.75 -0.73 114.21 67.52 5.15 13.74 39902 Panasonic 1337.5 28.00 1338.5 691.70 1.93 17.37 31685.24 HonHaiPrc 114.50 -2.00 119.00 65.70 3.74 15.16 56694.78 Coca-Cola 48.43 -0.08 60.13 36.27 3.55 23.80 208124.76 Phillips66 74.69 -0.09 102.99 40.04 5.08 -11.44 32624.61
UnibailR 190.00 0.35 236.45 177.35 2.94 -7.05 22215.04
CanNatRs 31.40 -0.18 41.57 9.80 5.24 -64.28 29365.14 Seven & I 3930 56.00 4419 2937.5 2.49 19.38 33636.35 MediaTek 872.00 -13.00 899.00 273.00 1.23 41.69 49525.24 Cognizant 81.49 1.73 82.73 40.01 1.11 28.62 43565.22 PhilMorris 81.35 -0.56 90.17 56.01 6.11 15.62 126679.86
Vinci 83.58 -1.26 107.35 54.76 2.50 28.55 59542.96
CanNatRy 139.33 -0.51 149.11 92.01 1.62 29.30 78510.23 ShnEtsuCh 19095 -195.00 19675 8751 1.19 26.53 76819.31 TaiwanSem 647.00 14.00 650.00 235.50 1.58 32.92 599230.62 ColgtPlm 79.89 -0.96 86.41 58.49 2.30 24.21 68479.22 PNCFin 154.94 -1.06 162.74 79.41 3.13 19.94 65648.24
Vivendi 26.40 0.25 26.85 16.60 2.33 16.99 37901.32
Enbridge 44.91 0.16 57.32 33.06 7.03 46.93 72018.87 Softbank 8694 -64.00 8900 2609.5 0.52 -61.01 175425.76 Thailand (THB) Comcast♦ 48.86 0.02 52.49 31.71 1.94 20.78 223088.84 PPG Inds 143.89 -1.15 153.81 69.77 1.52 30.06 33987.45
GtWesLif 31.00 -0.22 35.60 18.88 5.55 11.34 22772.61 Germany (€)
Sony 10590 -15.00 10860 0.00 0.49 13.67 128942.87 PTT Explor 41.00 - 47.00 23.60 5.31 28.33 39045.9 ConocPhil 45.61 -0.40 64.85 20.84 3.88 -38.97 48922.38 Praxair 164.50 -0.99 169.75 140.00 2.29 39.25 47306.22
ImpOil 26.63 -0.32 35.55 10.27 3.29 -44.52 15479.03 Allianz 200.25 -0.75 232.60 117.10 4.91 12.21 99941.53
SumitomoF 3383 -59.00 3987 2507.5 5.92 20.78 44881.51 United Arab Emirates (Dhs) Corning 38.56 0.03 38.84 17.44 2.35 140.66 29460.23 ProctGmbl 131.81 -1.79 146.92 94.34 2.46 23.90 326836.85
Manulife 24.50 -0.10 27.78 12.58 4.44 9.27 37624.59 BASF 67.36 0.77 69.24 37.36 5.00 -30.67 74892.54
Takeda Ph 3595 -5.00 4526 2894.5 5.18 97.83 54717.72 Emirtestele 20.14 -0.66 20.80 11.04 4.19 18.54 47684.56 Costco 359.29 4.82 393.15 271.28 0.78 36.13 159149.38 Prudntl 83.79 -1.07 97.24 38.62 5.41-264.89 33180.84
Nutrien 66.52 -1.52 70.21 34.80 3.60 293.84 29978.29 Bayer 53.70 0.69 78.34 39.91 5.33 -3.23 63861.73
TokioMarine 5524 -70.00 6317 4167 3.65 18.19 37441.81 United Kingdom (p) CrownCstl 160.94 1.55 180.00 114.18 3.14 95.40 69413.08 PublStor 223.17 2.55 240.75 155.37 3.78 32.61 39015.06
RylBkC 107.58 -0.22 109.42 72.00 3.98 13.78 121291.47 BMW 70.79 2.45 77.31 36.60 3.61 13.08 51586.05
Toyota 7686 -22.00 8045 0.00 2.96 13.51 242149.26 CSX 92.91 0.25 97.54 46.81 1.16 24.48 71055.24 Qualcomm 165.46 1.69 167.94 58.00 1.62 34.72 187133
Suncor En 23.06 -0.18 44.07 14.02 5.64 -5.51 27848.58 Continental 119.90 2.15 126.50 51.45 2.56 -15.99 29028.83 AscBrFd 2304 38.00 2730 1554 1.49 40.00 24864.26
Mexico (Mex$) CVS 74.89 -0.51 77.23 52.04 2.82 11.74 98024.53 Raytheon 116.96 -5.47 233.48 103.00 2.98 10.60 32566.46
ThmReut 103.19 0.69 115.66 75.91 1.94 20.66 40618.86 Daimler 57.91 2.31 59.93 21.02 1.591889.93 74996.11 AstraZen 7645 -77.00 10120 5871 2.84 52.02 131981.1
AmerMvl 14.00 -0.09 16.82 12.33 2.41 14.01 32679.83 Danaher♦ 235.30 -0.81 248.32 119.60 0.32 52.14 167151.82 Regen Pharm 536.54 2.65 664.64 328.13 - 18.65 56259.61
TntoDom♦ 74.76 -0.22 76.10 49.01 4.15 11.64 107512.38 Deut Bank 9.19 -0.11 10.37 4.45 - -12.16 22989.44 Aviva 348.00 1.90 417.60 205.70 2.73 6.34 19037.97
FEMSA UBD 145.64 -1.16 181.89 112.72 1.93 302.68 16068.7 Deere♦ 297.47 2.48 306.35 106.14 1.08 32.47 93529.35 S&P Global 321.69 8.55 379.87 186.06 0.85 30.57 77397.41
TrnCan♦ 56.10 -0.47 76.58 47.05 5.65 11.90 41759.12 Deut Tlkm 15.14 0.08 16.75 10.41 4.05 22.46 87263.63 Barclays 146.32 -0.54 184.00 73.04 - 12.73 34034.87
WalMrtMex 61.70 -2.29 68.25 47.76 0.83 36.04 55001.5 Delphi 17.02 0.31 18.51 5.39 - -7.42 1469.67 Salesforce 224.12 7.36 284.50 115.29 - 55.80 205069.8
ValeantPh 30.80 -1.06 36.02 14.01 - -4.20 8158.48 DeutsPost 43.15 0.24 43.67 19.11 2.72 21.02 64586.94 BP 302.85 1.60 508.70 188.52 9.28 -3.66 82280.33
Delta 41.27 0.96 61.61 17.51 2.06 -2.36 26316.11 Schlmbrg 25.19 -0.23 37.73 11.87 5.23 -3.14 35059.25
E.ON 8.75 0.02 11.56 7.60 5.37 18.63 27983.08 Netherlands (€) BrAmTob 2747.5 7.50 3496.5 2362.5 5.61 9.92 69828.89
China (HK$) Devon Energy 19.58 -0.42 25.77 4.70 2.15 -2.83 7489.9 Sempra Energy 122.21 0.73 161.87 88.00 3.54 17.86 35252.51
Fresenius Med 68.72 0.36 81.10 53.50 1.78 14.98 25324.9 Altice 5.33 0.00 6.86 2.26 - -4.05 7063.69 BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.02 -0.03 3.32 2.38 7.24 4.75 11975.54 DiscFinServ 98.68 -0.39 100.90 23.25 1.88 28.71 30245.06 Shrwin-Will 731.21 5.60 758.00 325.43 0.74 33.71 66411.73
Fresenius SE 38.81 0.08 51.54 24.25 2.21 11.69 21239.14 ASML Hld 453.15 13.25 461.30 177.52 0.54 55.80 230111.71 BT 138.10 - 184.92 94.68 3.35 9.09 18678.18
Bk China 2.78 0.01 3.28 2.33 8.27 4.21 29989.46 Disney 174.93 2.67 183.40 79.07 0.53-105.67 316708.15 SimonProp♦ 94.62 1.95 149.89 42.25 6.13 20.39 31045.82
HenkelKgaA 78.20 0.20 87.75 54.65 2.40 18.77 24592.71 Heineken 89.44 0.18 105.00 68.82 1.92 54.27 62362.51 Compass 1417 18.50 1995.5 865.80 1.90 177.13 31766.85
BkofComm 4.46 0.02 5.39 3.66 8.49 4.22 20144.43 DominRes 71.00 0.04 90.89 57.79 5.55 25.22 57923.16 SouthCpr 71.30 0.40 72.00 23.43 2.07 40.74 55120.12
Linde 213.80 - 226.40 130.45 1.53 58.72 135836.29 ING 7.83 0.06 10.91 4.23 - 17.03 36952.71 Diageo 2935.5 9.00 3281 2050.6 2.38 49.01 100736.94
BOE Tech 0.79 -0.07 0.90 0.47 - -5.19 20.28 DowDupont 30.52 -0.65 48.38 30.06 3.83 -7.69 68559.76 Starbucks 104.76 2.22 107.75 50.02 1.65 125.76 122464.44
MuenchRkv 237.20 0.20 284.20 141.10 4.22 26.63 40226.93 Unilever 49.05 -0.16 55.39 38.42 - 23.98 175781.12 GlaxoSmh 1379.8 -30.60 1857 1284 5.80 10.92 92499.31
Ch Coms Cons 4.00 -0.05 6.40 3.21 6.99 3.51 2280.02 DukeEner 90.89 0.51 103.79 62.13 4.41 31.46 66887.59 StateSt 77.46 -0.94 82.69 42.10 2.83 11.70 27327.71
SAP 104.86 0.96 143.32 82.13 1.54 25.10 155938.7 Norway (Kr) Glencore 280.30 6.55 287.10 109.76 2.85 -13.85 55116.07
Ch Evrbrght 3.37 0.02 3.97 2.40 7.60 4.84 5511.95 Eaton 125.38 -0.12 130.00 56.42 2.44 34.97 49976.47 Stryker♦ 245.30 3.23 247.44 124.54 0.99 50.46 92179.57
Siemens 122.36 1.14 125.54 53.02 3.26 24.65 125900.01 DNB 163.55 1.05 178.10 94.26 - 13.60 28732.42 HSBC 408.00 -3.45 599.00 281.50 1.91 -47.95 111512.62
Ch Rail Cons 5.15 - 9.99 4.07 4.85 3.28 1379.43 eBay 56.63 -0.35 61.06 26.02 1.15 16.13 39037.24 Sychrony Fin 39.73 0.03 40.69 12.15 2.34 17.12 23191.14
Volkswgn 172.20 6.20 183.80 99.16 2.85 20.86 61511.28 Equinor 146.85 3.10 187.20 95.20 5.47 -15.96 54024.17 Imperial Brands 1633 29.50 2057.5 1142 12.65 18.08 21230.56
Ch Rail Gp 3.98 - 4.92 3.33 5.05 3.23 2160.24 Ecolab 217.49 1.58 231.36 124.60 0.91 50.31 62080.05 T-MobileUS 130.87 1.02 135.54 63.50 - 46.84 162434.11
Hong Kong (HK$) Telenor 153.40 1.55 171.90 130.75 5.33 20.23 24326.12 LlydsBkg 35.79 -0.22 59.94 23.59 - 21.05 35156.57
ChConstBk 6.22 -0.04 6.66 4.93 6.17 5.34 192910.86 Emerson 84.16 0.73 85.39 37.75 2.51 24.63 50293.34 Target 187.31 -0.85 199.96 90.17 1.50 23.56 93799.82
AIA 105.20 -3.70 109.30 60.05 1.32 27.29 164143.08 Natl Grid 873.60 -5.20 1073.8 789.13 5.56 20.60 39971.89
China Vanke 31.30 -0.45 32.70 21.65 3.88 7.29 7645.76 Qatar (QR) EOG Res♦ 59.58 -0.90 86.17 27.00 2.34-106.61 34757.69 TE Connect 129.90 0.38 131.97 48.62 1.53-157.94 43003.16
BOC Hold 24.35 -0.25 28.40 20.05 6.96 7.74 33211.75 Natwest Group 156.50 -0.80 173.70 90.54 - 24.45 25527.53
ChinaCitic 3.60 -0.03 4.53 2.93 8.02 3.70 6911.43 QatarNtBk 18.43 -0.07 20.97 15.71 3.43 13.76 46752.95 EquityResTP 61.48 1.17 87.53 45.43 4.07 22.87 22886.13 Tesla Mtrs 848.84 4.29 884.49 70.10 - 1530.46 804615.68
Ch OSLnd&Inv 19.70 0.92 29.00 14.92 5.71 4.38 27836.21 Prudential 1420.5 -14.00 1509 682.80 2.61 34.96 50099.34
ChinaLife 18.06 0.12 22.00 11.64 4.90 8.30 17336.52 Russia (RUB) Exelon 42.82 - 50.54 29.28 3.72 16.71 41774.01 TexasInstr 173.11 -1.08 175.18 93.09 2.19 31.04 158904.96
ChngKng 41.65 -0.65 55.30 33.40 5.56 6.85 19844.68 ReckittB 6238 14.00 8191.3 5130 2.80 -16.13 59881.27
ChinaMBank 61.10 0.30 62.10 29.80 2.36 14.18 36186.12 Gzprm neft 185.71 -3.02 272.68 158.17 - -71.33 58976.64 ExpScripts 92.33 -3.47 101.73 66.93 - 11.10 52061.19 TheTrvelers 143.92 0.41 145.11 76.99 2.45 15.62 36454.93
Citic Ltd 6.29 0.03 9.99 5.20 8.16 3.50 23604.71 RELX 1831 8.00 2109 1382.86 2.50 27.91 48226.94
ChinaMob 49.00 -0.90 69.80 39.00 7.35 7.86 129429.42 Lukoil 4745.5 -157.00 6810 3663 10.47 32.79 44107.51 ExxonMb 49.19 0.35 68.42 30.11 7.46 59.81 207986.84 ThrmoFshr 516.81 9.43 532.57 250.21 0.17 40.18 204829.99
Citic Secs 20.35 0.20 21.45 12.60 2.95 15.01 5981.14 RioTinto 6034 117.00 6378 2954 5.07 16.92 110319.19
ChinaPcIns 37.00 -1.70 39.05 17.90 3.93 11.63 13246.92 MmcNrlskNckl 20150 -66.00 23656 13352 11.57 14.96 42774.79 Facebook 268.01 6.91 304.67 137.10 - 28.95 644287.72 TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69
CK Hutchison 57.75 -0.45 75.30 45.05 6.06 5.85 28728.92 RollsRoyce 107.40 2.75 243.99 34.59 1.47 -1.04 2722.86
ChMinsheng 4.73 -0.09 6.06 3.85 9.40 4.06 5076.96 Novatek 973.20 -3.20 1382.2 682.80 3.05 46.54 39639.58 Fedex 250.84 1.32 305.66 88.69 0.79 26.73 66488.98 TJX Cos 68.60 1.42 70.96 32.72 0.71 106.67 82363.3
CNOOC 8.42 -0.01 13.40 6.24 10.26 7.57 48496.51 RylDShlA 1477 5.60 2265 878.10 6.52 -8.88 92558.09
ChMrchSecs 26.07 0.90 28.18 13.10 - 23.57 29914.76 Rosneft 324.00 -11.00 489.90 229.80 9.45-126.68 46063.6 FordMtr 10.53 0.51 10.55 3.96 3.00-249.67 41147.16 Truist Financial Corp 51.38 -0.77 56.53 24.01 3.69 16.86 69266.32
HangSeng 144.00 -2.00 168.70 110.00 6.05 12.51 35515.48 Shire# 4690 111.00 4780 2944 0.58 11.63 56567.13
Chna Utd Coms 4.46 -0.08 6.16 4.19 1.36 25.30 21056.67 Sberbank 188.91 -2.03 270.80 172.15 9.07 5.92 54705 Franklin 26.77 -0.37 27.60 14.91 4.25 15.97 13542.89 UnionPac 217.60 2.32 221.28 105.08 1.88 26.29 146633.87
HK Exc&Clr 507.00 6.00 525.00 206.00 1.46 61.59 82922.89 StandCh 469.20 -7.40 701.50 334.25 - 23.42 21086.02
ChShenEgy 15.70 -0.28 16.32 11.94 9.72 6.55 6883.35 Surgutneftegas 35.13 -0.76 54.89 24.06 1.70 1.55 16833.73 GenDyn♦ 153.69 0.56 190.08 100.55 2.91 13.21 44104.75 UPS B 158.57 2.29 178.01 82.00 2.65 28.54 113414.31
MTR 44.05 -1.20 47.15 36.20 3.08 40.32 35123.87 Tesco 242.30 0.20 260.00 202.00 3.78 22.90 27043.46
ChShpbldng 4.36 -0.03 5.44 3.98 - -114.47 12324.82 GenElectric♦ 11.38 -0.06 13.26 5.48 0.37 27.66 99643.56 USBancorp 45.64 -2.44 55.69 28.36 3.88 14.33 68746.31
SandsCh 31.65 0.75 42.80 25.15 3.44 119.76 33031.79 Saudi Arabia (SR) Vodafone♦ 127.14 0.14 157.86 92.76 6.42 16.39 46228.9
ChStConEng 5.04 -0.02 6.02 4.76 3.68 4.98 32145.22 GenMills♦ 54.68 -1.00 66.14 46.59 3.70 13.73 33430.3 UtdHlthcre 351.15 -1.05 367.95 187.72 1.40 19.13 333173.65
SHK Props 109.70 -1.80 120.80 87.60 4.98 12.24 41008.6 AlRajhiBnk 74.00 -0.20 75.60 51.00 2.14 17.94 49309 WPP 810.80 21.00 1031 450.00 2.80 -4.36 13993.69
ChUncHK 4.97 -0.13 7.36 3.84 3.60 10.28 19617.99 GenMotors 55.72 0.88 56.60 14.33 1.44 23.70 79755.61 UtdTech 86.01 -5.36 158.44 69.02 2.69 144.88 74498.84
Tencent 679.50 24.50 680.00 325.20 0.20 52.43 840985.05 Natnlcombnk 45.35 0.10 47.35 30.50 2.79 11.68 36262.11 United States of America ($)
CNNC Intl 5.10 - 5.68 4.02 2.40 15.16 12273.21 GileadSci 67.23 0.16 85.97 56.56 4.19 65.06 84274.7 ValeroEngy 60.02 -0.52 90.94 31.00 6.75-948.72 24475.51
SaudiBasic 103.80 0.20 106.40 61.90 3.76-108.15 82999.05 21stC Fox A 30.65 0.64 39.42 19.81 1.58 10.97 10383.76
CSR 3.91 - 5.76 2.53 4.61 9.58 2204.81 India (Rs) GoldmSchs 288.70 -5.51 309.41 130.85 1.83 15.77 99330.65 Verizon♦ 56.98 -0.07 61.95 48.84 4.58 12.23 235794.82
SaudiTelec 111.60 -1.60 117.00 72.30 3.78 19.74 59490.66 3M 169.46 0.34 181.91 114.04 3.64 18.84 97748.24
Daqin 6.57 -0.07 8.00 6.32 7.32 9.24 15100.94 Bhartiartl 596.15 3.85 612.00 361.75 0.35 -13.93 44531.86 Halliburton 19.92 -0.62 24.52 4.25 2.38 -3.80 17609.42 VertexPharm 235.81 3.90 306.08 197.47 - 21.90 61319.54
Gree Elec Apl 0.13 0.00 0.21 0.07 - -0.04 5.81 HDFC Bk 1492 -11.85 1511.65 738.75 - 27.83 112515.43 Singapore (S$) AbbottLb♦ 112.60 0.03 115.14 61.61 1.31 56.80 199567.91 HCA Hold 167.53 1.43 174.55 58.38 0.52 16.08 56687.91 VF Cp 82.14 0.19 95.15 45.07 2.46-324.59 32034.95
GuosenSec 13.24 -0.10 16.14 10.38 1.51 17.87 16785.15 Hind Unilevr 2355.95 -7.20 2614.3 1757.3 1.53 72.74 75792.86 DBS 26.38 -0.21 27.47 16.65 4.42 14.00 50579.15 Abbvie♦ 112.47 0.29 113.41 62.55 4.32 22.99 198570.27 Hew-Pack 25.18 0.04 26.15 12.54 2.95 11.94 32466.59 ViacomCBS 43.34 -0.41 46.86 10.10 2.34 19.12 24486.22
HaitongSecs 7.69 -0.04 9.42 5.79 - 6.96 3382.43 HsngDevFin 2688.15 31.20 2777.15 1473.45 0.82 27.88 66259.77 JardnMt US$ 56.21 0.21 58.79 37.37 3.38 -97.98 40484.55 Accenture♦ 260.08 4.24 271.18 137.15 1.29 31.37 171948.02 HiltonWwde 107.52 -0.41 116.73 44.30 0.29 -88.67 29831.03 Visa Inc 205.75 4.09 220.39 133.93 0.61 39.90 348877.01
Hngzh HikVDT 60.40 -0.19 62.19 27.00 1.16 43.33 75595.9 ICICI Bk 551.00 4.55 561.00 268.30 - 25.13 52084.17 JardnStr US$ 26.66 0.06 33.50 17.81 1.47 -30.59 29550.17 Adobe 466.60 10.10 536.88 255.13 - 57.72 223836.88 HomeDep 275.76 2.57 292.95 140.63 2.24 22.61 296878.05 Walgreen 47.53 -0.62 54.53 33.36 3.94 89.78 41067.9
Hunng Pwr 3.06 - 4.15 2.24 5.45 23.02 1855.48 Infosys 1339.45 22.80 1392.8 509.25 1.37 29.99 78121.48 OCBC 10.60 -0.04 11.22 7.80 4.24 14.79 35773.75 AEP 80.21 -0.50 104.97 65.14 3.68 19.71 39815.23 Honywell 207.51 0.75 216.70 101.08 1.83 28.24 145606.81 WalMartSto 144.95 1.56 153.66 102.00 1.56 19.84 410104.99
IM Baotou Stl 1.20 0.04 1.31 1.04 - -115.34 5877.07 ITC 217.65 -1.20 241.45 134.60 4.87 18.69 36670.84 SingTel 2.47 0.02 3.42 2.00 5.08 23.68 30429.71 Aetna - - - - - - - HumanaInc♦ 408.39 1.08 474.70 208.25 0.63 12.40 54046.26 WellsFargo 32.50 -0.13 49.88 20.76 5.29 79.03 134370.91
In&CmBkCh 5.13 -0.04 5.79 3.96 6.15 5.41 57439.43 L&T 1382.65 12.80 1393.05 661.00 1.36 64.34 26582.97 UOB 23.90 0.11 26.61 17.28 4.82 10.64 30163.54 Aflac 46.87 -0.18 53.39 23.07 2.50 6.98 32923.61 IBM 129.11 0.09 158.75 90.56 5.31 13.87 115044.38 Williams Cos 22.12 -0.34 23.73 8.41 7.53 110.39 26838.45
IndstrlBk 23.22 -0.66 24.38 14.93 3.29 8.00 70417.38 OilNatGas 98.85 0.75 124.50 50.00 5.28 36.71 17027.16 South Africa (R) AirProd♦ 288.21 2.55 327.89 167.43 1.90 31.97 63708.55 IllinoisTool 203.06 -1.75 224.69 115.94 2.26 29.22 64272.6 Yum!Brnds 109.05 1.66 110.66 54.95 1.77 30.15 32896.91
Kweichow 2040.63 31.22 2173.33 960.10 0.84 57.42 396319.68 RelianceIn 2054.7 38.30 2369.35 867.40 0.33 31.31 190241.1 Firstrand 49.57 -0.51 62.91 31.13 5.68 17.28 18676.73 Alexion 157.52 -1.19 160.03 72.67 - 34.90 34472.53 Illumina 399.94 9.73 404.20 196.78 - 88.00 58391.24 Venezuela (VEF)
Midea 0.71 - 1.02 0.52 - -1.79 19.70 SBI NewA 302.55 3.95 331.90 149.45 - 11.03 36971.18 MTN Grp 65.37 1.88 89.78 26.25 7.95 7.58 8273.34 Allergan 193.02 0.03 202.22 114.27 1.54 -25.19 63659.11 Intcntl Exch 114.03 -0.85 119.02 63.51 1.09 29.79 64003.19 Bco de Vnzla 68000 1000.00 71990 1300 506.47 - 160.33
New Ch Life Ins 33.15 -0.20 37.30 20.45 5.06 6.80 4422.34 SunPhrmInds 594.70 -1.85 628.00 312.00 0.70 92.80 19537.33 Naspers N 3500 50.00 3568 1843.8 - 32.79 102382.68 Allstate 110.64 0.37 125.92 64.13 2.02 7.39 33640.57 Intel 58.27 0.28 69.29 43.61 2.36 10.86 238769.97 Bco Provncl 2549990 149990 2797900 127000 - -16.29 177.74
PetroChina 2.63 -0.01 3.90 2.16 5.87 21.70 7158.43 Tata Cons 3308.8 48.10 3327.95 1506.05 1.04 38.81 167585.82 Alphabet 1871.29 86.82 1879.49 1008.87 - 34.32 562592.39 Intuit 397.54 12.59 398.12 187.68 0.58 50.61 104451.97
South Korea (KRW) Mrcntl Srvcs 2310000 9990 2600000 120000 0.02 -2.68 90.91
PingAnIns 101.20 -0.40 103.60 69.00 2.49 12.20 97229.61 Altria 41.72 0.49 51.47 30.95 8.54 101.44 77523.96 John&John 162.77 -0.01 164.14 109.16 2.54 24.27 428498.97
Indonesia (Rp) HyundMobis 342000-3000.00 405000 126000 0.87 20.69 29543.97
PngAnBnk 22.47 0.13 22.97 11.91 - 18.10 67415 Amazon 3230.69 109.93 3552.25 1626.03 - 89.591621003.38 JohnsonCn 51.84 0.21 52.92 22.78 2.12 58.53 37527.38
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 24850 -100.00 30050 15550 - 173.95 14497.94 Closing prices and highs & lows are in traded currency (with variations for that
Pwr Cons Corp 3.98 -0.05 4.88 3.40 1.00 8.62 6857.48 AmerAir 16.01 0.04 30.78 8.25 1.32 -1.10 9683.01 JPMrgnCh♦ 135.47 -2.57 142.75 76.91 2.80 16.77 412940.07
Israel (ILS) SK Hynix 130500 - 140000 65800 0.76 31.36 86340.08 country indicated by stock), market capitalisation is in USD. Highs & lows are
SaicMtr 23.45 -0.24 28.80 16.90 3.76 12.75 42358.27 AmerExpr♦ 128.09 1.34 138.13 67.00 1.06 30.07 103138.32 Kimb-Clark 131.06 -0.59 160.16 110.66 3.41 18.04 44578.32
TevaPha 39.89 0.98 46.45 24.30 - -3.18 13458.83 SmsungEl 87200 200.00 96800 42300 1.61 24.00 473090.4 based on intraday trading over a rolling 52 week period.
ShenwanHong 0.07 0.00 0.09 0.03 - -0.22 73.49 AmerIntGrp 42.14 -0.11 56.42 16.07 3.20 -6.87 36304.69 KinderM 15.46 -0.10 22.58 9.42 6.99 293.11 34986.94
Italy (€) Spain (€) AmerTower♦ 220.49 3.61 272.20 174.32 2.07 49.44 97944.6 ♦ ex-dividend
ShgPdgBk 9.98 -0.18 12.69 9.22 6.02 6.11 45289.17 Kraft Heinz 32.43 0.07 36.37 19.99 5.20 -76.89 39649.74 ■ ex-capital redistribution
Enel 8.58 0.00 9.05 5.15 3.91 20.00 105568.06 BBVA 4.05 0.03 5.34 2.13 6.56 -44.06 32697.72 Amgen 251.52 3.25 264.97 177.05 2.62 19.22 146427.05
Sinopec Corp 4.07 -0.01 4.70 2.95 5.65 10.70 13395.83 Kroger 32.96 -0.67 37.22 26.72 2.11 8.34 25090.19 # price at time of suspension
ENI 8.90 0.07 13.98 5.73 6.31 -3.20 38849.27 BcoSantdr 2.69 0.00 3.96 1.50 3.64 -6.72 54082.82 Anadarko 72.77 0.56 76.23 40.40 1.50 -63.37 36563.54
Sinopec Oil 1.97 -0.01 2.45 1.67 - 89.37 3667.83 L Brands 45.72 -0.01 48.30 8.00 1.38 -57.06 12715.12
Generali 14.81 0.31 18.89 10.20 3.46 12.47 28254.85 CaixaBnk 2.14 -0.06 2.94 1.50 3.35 12.32 15458.61 Anthem 320.60 -3.09 340.98 171.03 1.20 15.68 79734.6
Denmark (kr) Iberdrola♦ 11.73 -0.09 12.57 7.76 3.48 20.78 90166.1 LasVegasSd 54.69 0.24 71.38 33.30 3.01 -52.39 41769.94
IntSPaolo 1.93 0.02 2.63 1.31 - 5.48 45310.29 Aon Cp 210.18 1.02 238.19 143.93 0.88 25.69 48050.58 LibertyGbl 24.91 0.15 26.63 15.24 - -7.98 4515.59
DanskeBk 113.85 0.20 123.60 68.04 - 11.74 15974.57 Inditex 26.17 0.21 32.28 18.51 1.36 50.68 98732.33
Unicred 8.11 0.33 14.44 6.01 - -7.02 21960.96 Apple 132.09 4.26 138.79 53.15 0.63 38.192222211.73 Lilly (E) 200.50 2.02 201.36 117.06 1.51 31.17 191794.61
MollerMrsk 15170 15.00 15400 4976 0.95 30.81 23286.83 Repsol 8.85 0.21 14.08 5.04 10.58 -1.71 16355.59 ArcherDan 52.92 -0.18 53.99 28.92 2.85 17.80 29444.11 Lockheed 342.55 1.05 442.53 266.11 2.95 13.88 95840.9
NovoB 443.50 -5.30 467.90 331.70 1.98 24.55 130822.59 Telefonica 3.77 0.02 6.57 2.71 10.64 73.86 24329.81

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
Gree Elec Apl 0.13 0.13 0.00 1.54 0.03 24.5 11.54 Midea 0.71 0.71 0.00 0.00 -0.15 -17.4 4.89 Jan 20 date Coupon S* M* F* price yield yield yield US Jan 20 date Coupon S* M* F* price yield yield yield US
CSR 3.91 3.91 0.00 0.00 0.61 18.5 42.18 SaicMtr 23.45 23.69 -0.24 -1.01 -2.71 -10.4 -4.95 High Yield US$ US$
BOE Tech 0.79 0.86 -0.07 -8.14 0.12 17.9 30.00 CaixaBnk 2.14 2.20 -0.06 -2.73 -0.21 -8.9 -2.91 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 -
Ch OSLnd&Inv 19.70 18.78 0.92 4.90 2.80 16.6 9.94 BkNYMeln 42.61 45.82 -3.21 -7.01 -3.71 -8.0 4.45 High Yield Euro The Goldman Sachs Group, Inc. 02/28 5.00 BBB+ A3 A 117.21 2.47 0.00 0.32 -
CNOOC 8.42 8.43 -0.01 -0.12 1.12 15.3 16.69 USBancorp 45.64 48.07 -2.44 -5.07 -3.88 -7.8 1.75 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 -
Tencent 679.50 655.00 24.50 3.74 89.50 15.2 17.93 Nppn Stl 1353.50 1368.50 -15.00 -1.10 -113.00 -7.7 1.77 GTE LLC 04/28 6.94 BBB+ Baa2 A- 128.27 2.80 0.00 -0.11 -
GenMotors 55.72 54.84 0.88 1.61 6.99 14.3 35.97 Halliburton 19.92 20.54 -0.62 -3.02 -1.65 -7.6 1.24 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 130.43 2.62 -0.07 -0.22 -
Netflix 576.09 501.77 74.32 14.81 68.30 13.5 7.58 CanNatRs 31.40 31.58 -0.18 -0.57 -2.12 -6.3 1.75 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 -
HK Exc&Clr 507.00 501.00 6.00 1.20 56.80 12.6 28.68 PTT Explor 41.00 41.00 0.00 0.00 -2.75 -6.3 -4.09 Colombia 01/26 4.50 - Baa2 BBB- 112.85 1.68 -0.05 0.04 1.33
Brazil 04/26 6.00 - Ba2 BB- 118.38 2.24 0.04 0.16 1.89 Euro
Bridgestne 4066.00 4053.00 13.00 0.32 416.00 11.4 18.09 Perrigo 43.27 43.47 -0.20 -0.46 -2.85 -6.2 -6.14 Electricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -
IndstrlBk 23.22 23.88 -0.66 -2.76 2.37 11.4 13.49 StandCh 469.20 476.60 -7.40 -1.55 -29.80 -6.0 -99.00 Poland 04/26 3.25 - A2 A- 112.14 0.86 0.01 0.08 0.51
Mexico 05/26 11.50 - Baa1 BBB- 150.00 1.64 0.00 -0.29 1.29 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 124.42 0.68 0.00 -0.11 -
Illumina 399.94 390.21 9.73 2.49 37.94 10.5 9.15 Citigroup 62.90 63.69 -0.79 -1.24 -3.96 -5.9 6.57 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -
Canon 2225.50 2183.00 42.50 1.95 210.00 10.4 6.33 BlackRock 734.38 733.65 0.73 0.10 -45.37 -5.8 4.96 Turkey 10/26 4.88 - B2 BB- 99.62 4.95 0.00 0.13 4.60
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Finland 04/31 0.75 AA+ Aa1 AA+ 111.08 -0.27 0.00 -0.05 -0.87
HonHaiPrc 114.50 116.50 -2.00 -1.72 10.50 10.1 30.56 Takeda Ph 3595.00 3600.00 -5.00 -0.14 -220.00 -5.8 -7.27
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
TaiwanSem 647.00 633.00 14.00 2.21 56.00 9.5 26.86 Formosa PetChem 95.20 97.90 -2.70 -2.76 -5.80 -5.7 2.59
Russia 06/28 12.75 - Ba1 BBB 170.12 2.39 -0.01 0.08 - Mexico 06/26 1.09 - Baa1 BBB- 97.51 1.57 0.00 -0.01 1.22
China Vanke 31.30 31.75 -0.45 -1.42 2.70 9.4 17.84 Kweichow 2040.63 2009.41 31.22 1.55 -120.27 -5.6 10.60
Naspers N 3500.00 3450.00 50.00 1.45 301.22 9.4 16.33 EDF 12.08 12.37 -0.29 -2.34 -0.71 -5.5 -3.24 Brazil 02/47 5.63 - Ba2 BB- 111.70 4.83 0.02 0.43 - £ Sterling
GileadSci 67.23 67.07 0.16 0.24 5.69 9.2 13.75 PPG Inds 143.89 145.04 -1.15 -0.79 -8.12 -5.3 -1.10 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -
Intuit 397.54 384.95 12.59 3.27 32.58 8.9 4.51 KoreaElePwr 24850.00 24950.00 -100.00 -0.40 -1350.00 -5.2 -12.19 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
Lilly (E) 200.50 198.48 2.02 1.02 15.00 8.1 17.00 BcoSantdr 2.69 2.68 0.00 0.17 -0.14 -5.1 4.27 Mexico 04/23 2.75 - Baa1 BBB- 106.37 -0.08 0.01 -0.24 -0.19 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jan 20 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 20 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 21.98 -1.26 23.24 85.42 12.31 Jan 20 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 21.07 -1.31 22.38 71.05 7.84 - - - - - - - - -
US Discount 2.65 30-09-2019 2.75 2.75 1.75 ABF Pan-Asia unhedged 226.11 0.04 -0.55 -0.55 0.15 8.18 VXN 26.87 -0.84 27.71 84.67 14.97 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 406.22 0.12 -0.64 -0.64 -0.06 5.81 VDAX 21.94 -1.62 23.56 93.30 - - - - - - - - - -
UK Repo 0.10 19-03-2020 0.25 0.75 0.25 Corporates($) - - - - - - † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. - - - - - - - - -
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 244.22 0.01 0.02 0.02 0.00 2.46 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 100.21 -0.04 -20.00 -20.00 33.33 -105.97 101.22 100.21 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 262.74 0.13 -0.29 -0.29 -0.27 4.40 Tr 4pc '22 105.06 0.00 -100.00 -100.00 -100.00 -100.00 107.91 105.06 38.77
Gilts( £) 374.55 0.19 -1.23 -1.23 -0.59 5.17 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 121.22 0.02 -300.00 -300.00 -128.57 -96.00 124.55 121.22 35.84
INTEREST RATES: MARKET Global Inflation-Lkd 310.45 0.01 -1.29 -1.29 -0.56 10.43 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 107.17 0.16 33.33 23.08 166.67 -70.37 109.23 103.96 39.34
Over Change One Three Six One Markit iBoxx £ Non-Gilts 392.68 0.10 -0.57 -0.57 -0.06 5.22 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 142.32 0.47 11.90 6.82 27.03 -43.37 148.26 137.84 38.71
Jan 20 (Libor: Jan 19) night Day Week Month month month month year Overall ($) - - - - - - Australia 11/22 2.25 103.99 0.07 0.00 0.00 -0.04 -0.68 Tr 4.25pc '36 151.90 0.67 9.84 4.69 17.54 -33.66 160.46 145.12 30.41
US$ Libor 0.08513 -0.002 -0.002 -0.001 0.12950 0.22363 0.23588 0.31300 Overall( £) 375.56 0.16 -1.05 -1.05 -0.45 4.93 05/32 1.25 100.67 1.19 0.03 -0.05 0.08 - Tr 4.5pc '42 173.01 0.85 6.25 2.41 11.84 -26.72 186.37 162.55 27.21
Euro Libor -0.59386 0.000 -0.006 0.002 -0.58671 -0.55386 -0.53314 -0.49871 Overall(€) 253.47 0.07 -0.20 -0.20 -0.19 3.55 Austria - - - - - - - Tr 3.75pc '52 178.71 0.89 7.23 2.30 12.66 -22.61 198.36 164.59 24.10
£ Libor 0.03813 0.000 0.002 0.001 0.02713 0.02700 0.03763 0.07500 Treasuries ($) - - - - - - 02/47 1.50 136.88 0.07 -0.01 -0.05 0.03 -0.50 Tr 4pc '60 204.17 0.86 8.86 3.61 14.67 -21.82 231.12 186.33 24.12
Swiss Fr Libor -0.001 -0.81060 -0.77140 -0.72620 -0.60980 FTSE Belgium 09/22 1.00 102.60 -0.59 0.00 -0.01 0.06 -0.09 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.005 -0.05700 -0.07100 -0.05383 0.04033 Sterling Corporate (£) - - - - - - Canada 11/22 2.00 103.31 0.17 0.00 0.00 -0.01 -1.49
Euro Euribor
Sterling CDs
0.006
-
-0.56100
-
-0.54800
-
-0.52800
-
-0.50200 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 06/30 1.25 104.05 0.80 0.00 -0.06 0.07 -0.79 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 694.48 1.72 - - 8.01 23.14 Denmark 11/22 0.25 101.55 -0.60 0.02 0.00 0.03 -0.01
US$ CDs - - - - Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 11/30 0.10 117.27 -1.52 -0.01 -0.08 -0.13 -0.03 Price Indices Day's Total Return Return
Euro CDs - - - - Fixed Coupon Jan 20 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series Finland 04/23 1.50 104.96 -0.70 0.01 0.00 0.02 -0.19
04/31 0.75 111.85 -0.38 -0.01 -0.05 0.01 -0.47 1 Up to 5 Years 89.36 -0.03 2489.62 -0.08 1.08 -0.07
Short 7 Days One Three Six One Index change change change high low 2 5 - 10 Years 186.14 -0.09 3812.90 -0.58 2.89 0.18
Jan 20 term notice month month month year Markit iTraxx France 05/23 1.75 105.75 -0.68 0.00 -0.03 0.02 -0.18
3 10 - 15 Years 224.24 -0.16 4895.07 -1.08 4.49 0.48
Euro -0.74 -0.44 -0.71 -0.41 -0.70 -0.40 -0.65 -0.35 -0.67 -0.37 -0.67 -0.37 Crossover 5Y 248.09 -8.65 - - 263.48 243.40 11/26 0.25 104.85 -0.56 0.00 -0.03 0.03 -0.36
4 5 - 15 Years 194.58 -0.11 4077.07 -0.71 3.41 0.28
Sterling 0.45 0.55 0.70 0.80 0.78 0.88 0.82 0.97 0.89 1.04 Europe 5Y 48.78 -1.51 -0.21 -3.51 66.97 45.31 Germany - - - - - - -
5 Over 15 Years 391.28 -0.52 6457.26 -2.71 7.60 0.81
Swiss Franc - - - - - - - - - - - - Japan 5Y 50.94 -0.31 -0.64 -1.15 70.43 50.66 05/23 1.50 105.26 -0.75 0.01 -0.02 0.03 -0.16
7 All stocks 191.43 -0.27 4112.46 -1.45 4.77 0.67
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 59.83 -1.65 0.22 -3.60 86.20 54.75 02/26 0.50 106.41 -0.74 0.00 -0.04 0.02 -0.28
US Dollar 0.12 0.32 0.03 0.23 0.06 0.26 0.13 0.33 0.15 0.35 0.22 0.42 08/50 0.00 103.55 -0.12 0.00 -0.06 0.04 -0.42 Day's Month Year's Total Return Return
Markit CDX Greece 02/26 3.65 118.44 0.60 -0.03 -0.04 -0.03 -0.71
Japanese Yen -0.20 0.00 -0.20 0.00 -0.25 0.05 -0.20 0.10 -0.20 0.10 -0.15 0.15 Index Linked Jan 20 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 169.10 -2.15 4.14 7.16 245.71 150.45
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Ireland 10/22 0.00 101.10 -0.63 0.01 0.02 0.04 -0.18 1 Up to 5 Years 301.41 -0.15 -1.05 -1.80 2499.19 -0.69 -0.15
Nth Amer High Yld 5Y 298.09 -6.13 -3.58 -11.78 421.26 290.61
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 05/30 2.40 125.95 -0.34 0.00 -0.05 0.00 -0.48 2 Over 5 years 807.75 -1.48 -5.35 3.64 6110.66 -5.31 4.01
Nth Amer Inv Grade 5Y 50.52 -1.45 -1.01 -5.27 65.62 49.59
05/30 2.40 125.95 -0.34 0.00 -0.05 0.00 -0.48 3 5-15 years 509.38 -0.46 -2.35 0.45 4064.98 -2.17 1.19
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.
Italy 08/22 0.90 101.94 -0.37 -0.04 -0.04 0.08 -0.53 4 Over 15 years 1058.38 -1.88 -6.48 4.70 7791.97 -6.48 4.93
02/25 0.35 101.91 -0.12 -0.05 -0.08 0.06 -0.84 5 All stocks 719.33 -1.37 -4.99 2.98 5543.56 -4.91 3.48
05/30 0.40 107.17 -0.36 -0.06 -0.12 -0.16 -0.91
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 03/48 3.45 146.23 1.40 -0.04 -0.08 0.03 -0.97 Yield Indices Jan 20 Jan 19 Yr ago Jan 20 Jan 19 Yr ago
Japan 04/23 0.05 99.94 0.08 0.00 0.00 0.01 - 5 Yrs -0.03 -0.04 0.33 20 Yrs 0.83 0.81 1.16
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
04/25 0.05 99.92 0.07 -0.01 0.00 0.02 - 10 Yrs 0.36 0.34 0.68 45 Yrs 0.78 0.75 1.09
Crude Oil† Feb 53.54 0.53 Corn♦ Mar 516.00 -9.00 Jan 19 Jan 19 Prev return stock Market stocks
12/33 1.60 118.16 0.18 0.00 0.02 0.03 0.04 15 Yrs 0.67 0.65 1.01
Brent Crude Oil‡ 56.29 0.42 Wheat♦ Mar 658.75 -14.50 Can 4.25%' 26 133.00 -1.175 -1.153 0.76 5.08 80537.74 7
12/49 0.40 93.46 0.65 0.00 0.01 0.04 0.19
RBOB Gasoline† Jan 1.55 0.01 Soybeans♦ Mar 1355.75 -27.75 Fr 0.10%' 25 106.03 -1.317 -1.314 0.75 11.35 252123.40 15
Netherlands 07/23 1.75 106.22 -0.72 0.00 -0.02 0.01 -0.18 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Mar 440.40 -10.00 Swe 0.25%' 22 109.91 -0.857 -0.874 0.34 26.51 203889.83 7
07/26 0.50 106.53 -0.67 0.00 -0.03 0.01 -0.33 Real yield Jan 20 Dur yrs Previous Yr ago Jan 20 Dur yrs Previous Yr ago
Natural Gas† Jan 2.48 -0.06 Cocoa (ICE Liffe)X Mar 1762.00 -11.00 UK 1.875%' 22 109.67 -3.193 -3.137 0.07 15.74 788326.74 28
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2604.00 4.00 New Zealand 04/25 2.75 109.94 0.38 0.00 -0.07 -0.01 -0.88 Up to 5 yrs -2.59 2.76 -2.87 -2.22 -3.07 2.75 -3.21 -2.81
UK 2.50%' 24 356.88 -3.882 -3.858 0.06 6.82 788326.74 28
Uranium† - - Coffee(Robusta)X Mar 1337.00 -12.00 05/31 1.50 104.68 1.02 0.00 -0.08 0.05 -0.70 Over 5 yrs -2.15 23.74 -2.23 -1.95 -2.17 23.80 -2.25 -1.97
UK 2.00%' 35 298.77 -2.646 -2.641 -1.87 9.08 788326.74 28
Carbon Emissions‡ - - Coffee (Arabica)♥ Mar 125.40 -1.40 05/31 1.50 104.68 1.02 0.00 -0.08 0.05 -0.70 5-15 yrs -2.66 9.39 -2.77 -2.44 -2.77 9.39 -2.84 -2.52
US 0.625%' 23 105.87 -1.933 -1.889 0.54 47.03 1680078.84 43
White SugarX 457.50 6.60 Norway 08/30 1.38 103.21 1.02 -0.01 -0.05 0.08 - Over 15 yrs -2.08 28.94 -2.17 -1.90 -2.10 28.96 -2.18 -1.92
Diesel† - - US 3.625%' 28 137.42 -1.293 -1.261 0.06 16.78 1680078.84 43
Sugar 11♥ 16.17 0.09 08/30 1.38 103.21 1.02 -0.01 -0.05 0.08 - All stocks -2.15 21.90 -2.24 -1.95 -2.18 21.99 -2.26 -1.99
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1985.50 12.50 Cotton♥ Mar 80.83 -0.21 Portugal 10/22 2.20 104.97 -0.64 0.00 0.02 0.09 -0.28 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1920.00 60.00 Orange Juice♥ Mar 117.45 -1.75 02/26 3.30 118.84 -0.36 -0.02 -0.05 0.01 -0.49 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 8029.50 35.50 Palm Oil♣ - - Spain 10/22 0.45 101.79 -0.55 -0.01 -0.02 0.02 -0.26 Gilt Closing Prices information contained herein is proprietary to
Lead 2036.00 25.50 Live Cattle♣ Feb 113.25 0.60 BONDS: TEN YEAR GOVT SPREADS 11/30 1.00 121.22 -1.03 -0.02 -0.06 -0.12 -0.40 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 18220.00 45.00 Feeder Cattle♣ Jan 134.88 - Sweden 06/22 0.25 109.91 -0.86 0.02 -0.20 -0.24 0.72 accurate, complete or timely; and does not constitute investment advice.
Tin 21760.00 645.00 Lean Hogs♣ Feb 66.55 -1.48 Spread Spread Spread Spread 06/26 0.13 117.29 -1.51 -0.01 -0.11 -0.05 0.12 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2723.50 33.50 Bid vs vs Bid vs vs 06/30 0.13 117.29 -1.56 -0.01 -0.11 -0.04 -
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland 05/22 2.00 103.76 -0.77 -0.01 -0.02 0.06 -0.01 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1834.70 1.65 Jan 19 Month Year 05/30 0.50 109.67 -0.51 0.00 -0.03 0.05 0.04 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.19 - 0.17 Netherlands -0.67 - -
Silver (US cents) 2529.50 43.00 S&P GSCI Spt 433.70 6.33 1.62 United Kingdom - - - - - - - Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria - - - New Zealand 1.02 - 0.00
Platinum 1091.00 15.00 DJ UBS Spot 80.15 3.68 0.44 Canada 0.80 - -0.22 Norway 1.02 - 0.00 07/23 0.75 102.13 -0.10 0.00 -0.05 -0.01 -0.51 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 2370.00 -7.00 TR/CC CRB TR 185.82 5.11 -4.03 Denmark -1.52 - -2.54 Portugal -0.36 - - 07/26 1.50 108.25 0.00 0.00 -0.06 0.02 -0.43 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland -0.38 - -1.40 Spain -1.03 - -2.05 07/47 1.50 115.68 0.84 -0.02 -0.08 0.05 -0.32
Iron Ore 168.90 -1.35 UBS Bberg CMCI TR 13.20 4.85 -4.74 Germany - - - Sweden -1.56 - -2.58 United States 03/22 0.38 100.32 0.11 0.00 -0.02 0.01 - Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 80.00 -12.50 LEBA EUA Carbon 34.23 9.54 38.81 Ireland -0.34 - -1.36 Switzerland -0.51 - -1.53 03/25 0.50 100.63 0.35 -0.01 -0.05 0.04 -
Baltic Dry Index 1828.00 62.00 LEBA CER Carbon 0.29 0.00 52.63 Italy -0.36 - -1.38 United Kingdom - - - 02/30 1.50 104.16 1.02 0.00 -0.05 0.14 -
LEBA UK Power 1494.00 476.83 -11.60 Japan 0.18 - -0.84 United States 1.02 - 0.00 02/50 0.25 116.30 - - - - -
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.
14 ★ FINANCIAL TIMES Thursday 21 January 2021

MANAGED FUNDS SERVICE

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

Rubrics Global Fixed Income UCITS Fund $ 181.38 - 0.00 0.00 Data Provided by

Aberdeen Standard Capital (JER) GAM

PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
Aberdeen Standard Capital Offshore Strategy Fund Limited
Bridge Fund
Global Equity Fund
Global Fixed Interest Fund
Income Fund
Sterling Fixed Interest Fund
UK Equity Fund
Aegon Asset Management UK ICVC
3 Lochside Crescent, Edinburgh, EH12 9SA
0800 358 3009 www.aegonam.com
Authorised Funds
Global Equity GBP B Acc
Aegon Asset Management Investment Company (Ireland) (IRL)
1 North Wall Quay Dublin 1, Ireland +35 3162 24493
FCA Recognised
Absolute Return Bond B GBP Acc 1158.66 -
High Yield Global Bond A GBP Inc
High Yield Global Bond B GBP Inc
Global Equity Income B GBP Acc
Global Equity Income B GBP Inc
lobal Equity Market Neutral Fund - B Acc GBP £ 12.67
Global Sustainable Equity B Acc GBP £ 30.42
Global Sustainable Equity C Acc GBP £ 30.87
Inv Grd Gbl Bond A Inc GBH
Short Dated High Yld Bd B Acc GBP £ 11.08
Short Dated High Yld Bd C Acc GBP (Hdg) £ 11.19
Strategic Global Bond A GBP Inc
Strategic Global Bond B GBP Inc
Algebris Investments
Regulated
Algebris Financial Credit I EUR
Algebris Financial Credit R EUR
Algebris Financial Credit Rd EUR € 109.27
Algebris Financial Income I EUR
Algebris Financial Income R EUR € 145.51
Algebris Financial Income Rd EUR € 95.37
Algebris Financial Equity B EUR
Algebris IG Financial Credit B EUR € 111.23
Algebris IG Financial Credit R EUR € 110.35
Algebris Global Credit Opportunities I EUR € 130.50
Algebris Global Credit Opportunities R EUR € 128.50
Algebris Global Credit Opportunities Rd EUR € 128.50
Algebris Core Italy I EUR
Algebris Core Italy R EUR
Algebris Allocation I EUR
The Antares European Fund Limited
Other International
AEF Ltd Usd
AEF Ltd Eur
Arisaig Partners
Slater
Investments
funds@gam.com, www.funds.gam.com
Regulated www.morningstar.co.uk
LAPIS GBL TOP 50 DIV.YLD-Na-D £ 101.71 - 0.08 3.24
Data as shown is for information purposes only. No
£ 2.2622 - 0.0092 1.41 LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 99.43 - -0.12 0.70
offer is made by Morningstar or this publication.
£ 3.2719 - 0.0175 0.86
£ 0.9832 - 0.0011 4.19
£ 0.6594 - 0.0023 2.86
£ 0.9199
£ 2.0198
-
-
0.0008 2.86
0.0019 2.15
Guide to Data
Ashmore Investment Management Limited (LUX) Dragon Capital New Capital UCITS Fund PLC (IRL) Polar Capital Funds Plc (IRL)
2 rue Albert Borschette L-1246 Luxembourg www.dragoncapital.com Leconfield House, Curzon Street, London, W1J 5JB Regulated The fund prices quoted on these pages are supplied by
Slater Investments Ltd (UK)
Genesis Investment Management LLP the operator of the relevant fund. Details of funds
FCA Recognised Fund information:info@dragoncapital.com www.newcapitalfunds.com Automation & Artificial Intelligence CL I USD Acc $ 18.57 18.57 0.22 0.00 www.slaterinvestments.com; Tel: 0207 220 9460
published on these pages, including prices, are for the
Ashmore SICAV Emerging Market Debt Fund $ 91.32 - 0.04 4.58 Other International Funds Other International Funds FCA Recognised Asian Financials I USD $ 484.41 484.41 3.49 0.00 FCA Recognised purpose of information only and should only be used
Ashmore SICAV Emerging Market Frontier Equity Fund $ 170.30 - -1.55 1.41 Vietnam Equity (UCITS) Fund A USD $ 26.58 - -1.43 0.00 Emerging Mkts NAV £ 7.21 - -0.16 0.00 New Capital UCITS Funds Biotechnology I USD $ 41.90 41.90 0.71 0.00 Slater Growth 686.91 686.91 4.60 0.00 as a guide. The Financial Times Limited makes no
Ashmore SICAV Emerging Market Total Return Fund $ 81.40 - 0.07 3.91 New Capital China Equity Fund $ 321.76 - 0.96 0.00 Emerging Market Stars I USD Acc $ 16.44 - 0.32 0.00 Slater Income A Inc 132.97 132.97 0.21 5.22 representation as to their accuracy or completeness
and they should not be relied upon when making an
Ashmore SICAV Global Small Cap Equity Fund $ 222.08 - 2.30 0.02 New Capital Dynamic European Equity Fund € 132.77 - -0.11 0.00 European Ex UK Inc EUR Acc € 11.78 11.78 0.00 0.00 Slater Recovery 322.29 322.29 0.39 0.00
investment decision.
(UK) EM Active Equity Fund Acc USD $ 176.84 - 3.64 0.00 New Capital Dynamic UK Equity Fund £ 119.71 - 0.14 0.00 Financial Opps I USD $ 14.41 - 0.09 1.92 Slater Artorius 291.81 291.81 -0.03 0.00
EM Equity Fund Acc USD $ 162.07 - 2.32 0.00 New Capital Global Alpha Fund £ 118.26 - 0.21 0.00 GEM Income I USD $ 14.02 - 0.15 0.00 The sale of interests in the funds listed on these pages
may, in certain jurisdictions, be restricted by law and
EM Mkts Corp.Debt USD F $ 91.72 - 0.01 5.35 New Capital Global Equity Conviction Fund $ 213.67 - 1.22 0.00 Global Convertible I USD $ 17.53 17.53 0.13 0.00
the funds will not necessarily be available to persons
EM Mkts Loc.Ccy Bd USD F $ 79.01 - 0.11 4.38 New Capital Global Value Credit Fund $ 161.47 - 0.22 0.00 Global Insurance I GBP £ 7.18 - -0.02 0.00 in all jurisdictions in which the publication circulates.
£ 3.45 - 0.03 0.00
EM Short Duration Fund Acc USD $ 119.67 - -0.08 0.00 New Capital Japan Equity Fund ¥ 1699.63 - 10.06 0.00 Global Technology I USD $ 90.88 - 1.25 0.00 Persons in any doubt should take appropriate
Ennismore Smaller Cos Plc (IRL) HPB Assurance Ltd New Capital US Growth Fund $ 447.39 - 5.51 0.00 Healthcare Blue Chip Fund I USD Acc $ 16.82 16.82 0.12 0.00
professional advice. Data collated by Morningstar. For
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 other queries contact reader.enquiries@ft.com +44
5 Kensington Church St, London W8 4LD 020 7368 4220 New Capital US Small Cap Growth Fund $ 251.43 - 3.72 0.00 Healthcare Opps I USD $ 67.06 - 0.67 0.00 (0)207 873 4211.
FCA Recognised International Insurances New Capital Wealthy Nations Bond Fund $ 155.61 - 0.10 0.00 Income Opportunities B2 I GBP Acc £ 2.40 2.40 0.00 0.00
Ennismore European Smlr Cos NAV £ 134.85 - -0.99 0.00 Holiday Property Bond Ser 1 £ 0.48 - -0.01 0.00 The fund prices published in this edition along with
Japan Value I JPY ¥ 114.47 114.47 -0.12 0.00
Ennismore European Smlr Cos NAV € 151.41 - -1.31 0.00 Holiday Property Bond Ser 2 £ 0.62 - 0.00 0.00 additional information are also available on the
North American I USD $ 31.92 31.92 0.40 0.00 Financial Times website, www.ft.com/funds. The
UK Val Opp I GBP Acc £ 12.35 12.35 0.13 0.00 funds published on these pages are grouped together
by fund management company.
Atlantas Sicav (LUX)
Regulated Prices are in pence unless otherwise indicated. The
change, if shown, is the change on the previously
American Dynamic $ 7025.96 7025.96 -6.58 0.00 quoted figure (not all funds update prices daily). Those
American One $ 6487.26 6487.26 -83.47 0.00 designated $ with no prefix refer to US dollars. Yield
Bond Global € 1507.38 1507.38 7.64 0.00 percentage figures (in Tuesday to Saturday papers)
Ennismore European Smlr Cos Hedge Fd allow for buying expenses. Prices of certain older
Eurocroissance € 1254.08 1254.08 -6.79 0.00 Intrinsic Value Investors (IVI) LLP (IRL)
insurance linked plans might be subject to capital
Far East $ 1336.64 - 15.92 0.00 Other International Funds 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Polar Capital LLP (CYM) Stonehage Fleming Investment Management Ltd (IRL) gains tax on sales.
NAV € 542.75 - 0.82 0.00 FCA Recognised
Regulated www.stonehagefleming.com/gbi
IVI European Fund EUR € 24.41 - -0.07 0.00 enquiries@stonehagefleming.com Guide to pricing of Authorised Investment Funds:
European Forager A EUR € 193.23 - 7.99 0.00
IVI European Fund GBP £ 28.95 - -0.03 0.00 (compiled with the assistance of the IMA. The
Regulated
Investment Management Association, 65 Kingsway,
SF Global Best Ideas Eq B USD ACC $ 243.62 - 1.59 0.00 London WC2B 6TD.
SF Global Best Ideas Eq D GBP INC £ 271.45 - 0.97 0.10 Tel: +44 (0)20 7831 0898.)
0.05 1.61 OEIC: Open-Ended Investment Company. Similar to a
517.59 - 0.54 4.49 Oasis Crescent Management Company Ltd unit trust but using a company rather than a trust
Other International Funds structure.
1108.93 - 1.19 5.23
Equinox Fund Mgmt (Guernsey) Limited (GSY)
Oasis Crescent Equity Fund R 11.49 - 0.06 0.21
2184.42 - 8.58 0.00 Regulated Different share classes are issued to reflect a different
Private Fund Mgrs (Guernsey) Ltd (GSY) currency, charging structure or type of holder.
1455.44 - -8.32 3.19 Equinox Russian Opportunities Fund Limited $ 190.42 - 5.57 0.00 Janus Henderson Investors (UK)
Regulated
- 0.05 0.00 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Monument Growth 19/01/2021 £ 519.92 525.18 -1.41 0.85 Selling price: Also called bid price. The price at which
- 0.22 0.00 www.janushenderson.com units in a unit trust are sold by investors.
- 0.23 0.00 Authorised Inv Funds
Janus Henderson Instl UK Idx Opps A Acc £ 0.98 - 0.00 1.84 Buying price: Also called offer price. The price at
627.02 - -0.26 1.81 which units in a unit trust are bought by investors.
- 0.00 0.00 Includes manager’s initial charge.
- 0.00 0.00
1331.99 - 1.14 2.70
OGM Oasis Crescent Global Investment Funds (UK) ICVC (UK) Single price: Based on a mid-market valuation of the
Brooks Macdonald International Fund Managers Limited (JER) Regulated underlying investments. The buying and selling price
756.59 - 0.65 3.45 5 Anley Street, St Helier, Jersey, JE2 3QE Euronova Asset Management UK LLP (CYM)
OGM Oasis Crescent Global Short Term Income Fund USD Class A Shares (Dist) $ 0.99 - 0.00 1.95 for shares of an OEIC and units of a single priced unit
Regulated trust are the same.
+44 (0) 1534 700 104 (Int.) +44 (0) 800 735 8000 (UK) OGM Oasis Crescent Global Equity Fund USD Class A Shares (Dist) $ 36.02 - 0.26 0.24 Prusik Investment Management LLP (IRL)
Brooks Macdonald International Investment Funds Limited Smaller Cos Cls One Shares € 55.52 - -0.27 0.00 Enquiries - 0207 493 1331
OGM Oasis Crescent Variable Fund GBP Class A Shares (Dist) £ 9.60 - -0.01 0.00 Treatment of manager’s periodic capital charge:
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Foord International Fund | R $ 47.53 - 0.35 - LF Ruffer European C Inc 156.98 - 0.55 0.08
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Foord Global Equity Fund (Lux) | R $ 18.42 - 0.28 - LF Ruffer European O Acc 838.65 - 2.85 0.00
Arisaig Latin America Consumer Fund $ 27.07 - 0.17 0.00
Regulated LF Ruffer Equity & General C Acc 510.82 - -0.77 0.17
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48-49 Pall Mall, London SW1Y 5JG. Foord International Trust (Gsy) $ 47.33 - 0.35 0.00 LF Ruffer Equity & General O Acc 498.05 - -0.78 0.00
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EUR Distributing Class € 11.74 - -0.03 3.44 Regulated LF Ruffer Japanese C Acc 379.25 - -4.15 0.08
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EUR Distributing Class (H) € 9.08 - 0.02 3.41 Milltrust Alaska Brazil SP A $ 75.11 - -0.98 - Platinum Capital Management Ltd LF Ruffer Pacific & Emerging Markets C Acc 413.13 - 4.18 0.76
Authorised Inv Funds
Other International Funds
Artemis Corporate Bond I Acc £ 1.14 - 0.00 2.06 GBP Distributing Class £ 12.75 - -0.03 3.42 Franklin Templeton International Services Sarl (IRL) Milltrust Laurium Africa SP A $ 100.43 - 1.32 - LF Ruffer Pacific & Emerging Markets C Inc 112.59 - 1.14 0.79
GBP Distributing Class (H) £ 9.57 - 0.01 3.43 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Milltrust Marcellus India Fund $ 122.27 - 1.73 - Platinum All Star Fund - A $ 139.89 - - - LF Ruffer Pacific & Emerging Markets O Acc 402.41 - 4.04 0.48
Artemis Target Return Bond I Acc £ 1.07 - 0.00 1.98
USD Accumulating Class $ 13.19 - 0.02 0.00 Other International Funds Milltrust Singular ASEAN SP Founders $ 169.23 - -0.98 - Platinum Global Growth UCITS Fund $ 13.32 - 0.02 0.00 LF Ruffer Total Return C Acc 516.98 - -1.44 0.81
Dodge & Cox Worldwide Funds plc-Global Stock Fund Franklin Emerging Market Debt Opportunities Fund Plc Milltrust SPARX Korea Equity SP A $ 167.40 - 3.90 - Platinum Essential Resources UCITS Fund SICAV USD Class E $ 8.37 - 0.06 0.00 LF Ruffer Total Return C Inc 334.56 - -0.93 0.82
Franklin Emg Mkts Debt Opp CHFSFr 14.46 - 0.01 9.10 Milltrust VTB Russia Fund SP $ 127.95 - -0.65 - Platinum Global Dividend UCITS Fund $ 55.29 - 0.24 0.00 LF Ruffer Total Return O Acc 504.01 - -1.43 0.82
USD Accumulating Share Class $ 26.17 - 0.10 0.00
GBP Accumulating Share Class £ 31.58 - 0.01 0.00 Franklin Emg Mkts Debt Opp GBP £ 9.44 - 0.00 6.03 Milltrust Xingtai China SP A $ 159.82 - 4.11 - LF Ruffer Total Return O Inc 325.98 - -0.92 0.82
GBP Distributing Share class £ 21.74 - 0.00 0.94 Franklin Emg Mkts Debt Opp SGD S$ 20.80 - 0.02 4.36
EUR Accumulating Share Class € 32.41 - 0.00 0.00 Franklin Emg Mkts Debt Opp USD $ 16.59 - 0.03 6.19
GBP Distributing Class (H) £ 12.70 - 0.05 0.47
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
USD Accumulating Share Class $ 32.70 - 0.21 0.00
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GBP Distributing Share Class £ 22.67 - 0.06 1.21
EUR Accumulating Share Class € 34.97 - 0.09 0.00
Rubrics Global UCITS Funds Plc (IRL)
www.rubricsam.com
GBP Distributing Class (H) £ 13.50 - 0.09 0.95
Regulated
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Rubrics Global Credit UCITS Fund $ 17.82 - 0.01 0.00
Thursday 21 January 2021 ★ 15
16
Driven by dreams of the new India
film
Danny
Leigh
M
aybe it’s Dickens who
makes The White Tiger
such a brilliant rude
awakening. For Oliver
Twist and David Copper-
field — beloved poor boys made good —
life in Victorian England could be piti-
less. But fate still saved the day, chance
and human kindness the authors of a
happy ending. When Aravind Adiga’s
bestseller was published in 2008, win-
ning the Booker Prize the same year, it
too concerned a young man ascending
from poverty, this time in modern India.
But now, for all our love of the Dicken-
sian, fate had changed its terms and
conditions. The only way of balancing
the scales was to apply a thumb — hard.
So too in the new film adaptation, which
adds a finger jammed into the nearest
socket. The energy is a rush. The movie
is plenty to chew on.
Our hero is Balram Halwai (Adarsh
Gourav), chauffeur and servant to a
wealthy landlord. The film has been
directed by Ramin Bahrani, faithful to
the source material in plot, dialogue and
wildcat irreverence. Much of the story
takes place in the Delhi of 2007. Wall
Street is about to blow, but Balram sees
only the economy in front of him. There
are those who drive, he learns, and those
who are driven. Everyone else must take
their chances in the road.
“America is so yesterday,” he tells us.
If the sardonic voiceover reminds you of
Scorsese, so too will the drum-solo
rhythm. Later will come dreams of
entrepreneurial triumph. But for the
young Balram, it will be enough just to
get out of the village his family have died
early deaths in for generations. To do
that, he must become a driver, a trans-
formation owing more to Sun Tzu than
Slumdog Millionaire. Finally, he gets a
Above, from left: Adarsh Gourav,
Priyanka Chopra and Rajkummar
Rao in ‘The White Tiger’. Right:
Stacy Martin in ‘Archive’. Below:
Jasna Djuricic in ‘Quo Vadis, Aida?’
★ FINANCIAL TIMES
arts
uniform, a meagre salary and thumps to
the head should he displease his boss.
Bahrani delivers a manic, inspired
Russian doll of a movie. The outer layer
is a riotous black comedy of class and
ambition — the landlord’s eldest son a
thuggish consigliere, his youngest west-
ernised, married to a New Yorker.
(The couple are nicely played by
Bollywood stars Rajkummar Rao and
Priyanka Chopra.)
Nested within that is another story,
one about the queasy psychology of
master and mastered. Murder and
revenge drive the plot: mixed in too is
another giant of English letters, Harold
Pinter, and his headgame of how the
other half lives, The Servant. Inside that
is an allegory for the economic rise of
India, played out in a Delhi adorned
with the logos of Siemens and IBM. “You
are the new India!” Balram is teased.
Like every task he is given, it is one he
treats with earnest reverence.
On the rare occasions Bahrani loses
focus, Gourav holds the film together.
Remarkably, this is his first starring
role — a fitting note of novelty in a
movie where the future doesn’t wait for
your permission.
On Netflix from January 22
Where were you on January 23, 2020?
Outside Wuhan, it was the date when
reports of the coronavirus reached a
new and grimly dizzying pitch. Inside
the city, 11m people were placed in a
confinement so strict it was given a dys-
topian name: lockdown. Now, an end-
less year later, Chinese documentary
76 Days acts as an eye witness in four
Wuhan hospitals over the length of that
first covid limbo. We stay only in the
wards and corridors, hospital life her-
metically sealed. With good reason. As
the film begins, so much of Wuhan is
sick that a throng has massed outside
one ICU, panicked and pleading for
treatment, held back behind a single
locked door. The scene resembles a
zombie movie.
The viewer who is here for a general
exposé of China’s handling of the out-
break will need a different film. Yet the
fear is raw enough to feel some way from
an official blessing. If the chaos that
would engulf hospitals in Milan and
New York does not transpire, the abyss
is close enough.
Nine camera operators braved infec-
tion to capture the footage; it was then
shaped by New York-based director Hao
Wu, working with Weixi Chen and
another anonymous Chinese journalist.
The result is a time capsule in waiting, a
real-time record of medicine adapting
to the viciously unknown. Mummified
in PPE, Wuhan’s vanguard of nurses
tend to patients who decline or recover
seemingly at random. When one dies,
staff are left to parcel their phones into
plastic envelopes to be returned to
grieving families. Some ring inside their
bags — the sound of a world still catching
up with the worst possible news.
On digital platforms in the UK from
January 22
Srebrenica: just the name still stops you
in your tracks. Director Jasmila Zbanic’s
wrenching Quo Vadis, Aida? deals with
the 1995 genocide of more than 8,000
men and boys always evoked by men-
tion of the Bosnian mountain town. Yet
scarcely a moment of violence is seen.
The film takes place in the hours before
the massacre, bar a happy flashback and
a brief, breathtaking coda. In the first
seconds of the running time, summer
sun dapples the camera. Then comes a
tank. Serbian militias appear set to
invade the Muslim enclave; but the colo-
nel of the UN peacekeeping operation is
serene. Your people are safe, he tells the
mayor. His reassurance is translated by
a local schoolteacher, Aida, played by
the lucid Jasna Djuricic.
Events make a mockery of his words.
As gunmen film propaganda videos in
the town, thousands of refugees seek
safety in the UN compound, a disused
battery factory overseen by smooth-
faced Dutch soldiers in T-shirts. Soon
the militias are there too, offering the
hungry bread and Toblerones. Alone
among the townspeople, Aida sees
exactly what is coming. Zbanic is not
only making a memorial; she asks pain-
ful, vital questions. Could Aida do more
than try to save her own husband and
sons? Can rules-based order ever undo
atavism? And in the murderous rage vis-
ited by neighbour on neighbour, what
lesson for us all still lies in Srebrenica?
On Curzon Home Cinema in the UK from
January 22
In 2016, LA-based British film-maker
Oscar Sharp directed Sunspring, a sci-
ence fiction short “written” by an AI
neural network called Benjamin. The
bot had been fed dozens of sci-fi scripts,
from whose blueprints it then created
its own. While the screenplay for the
slickly surfaced Archive is credited to
writer-director Gavin Rothery, you
wonder if a similar process might have
Thursday 21 January 2021
The White Tiger
Ramin Bahrani
AAAAE
76 Days
Weixi Chen, Hao Wu, anonymous
AAAAE
Quo Vadis, Aida?
Jasmila Zbanic
AAAAE
Archive
Gavin Rothery
AAAEE
Baby Done
Curtis Vowell
AAAEE
been restaged, the movie a mulch of
genre classics including but not limited
to Solaris, 2001 and 2014’s Ex Machina.
Hard too not to picture a Zoom tutorial
between the anti-hero of that film —
played by Oscar Isaac — and this one,
George Almore (Theo James), another
robotics visionary brooding in a tech-
heavy Kubrickian pile.
Almore lives alone, but at the same
time not. He is a widower, but the con-
sciousness of his late wife Jules (Stacy
Martin) is stored in a purpose-built
hard drive, commercially available in
this, the near-future. Obviously it is a
scenario in which nothing could go
wrong, especially given his illicit
attempts to build an android to house
her memories, and particularly in a
remote location filled with his previous
experiments. For all the familiarity, the
movie has the brio of good pulp and a
neat surprise in store.
On digital platforms in the UK now
New Zealand stand-up Rose Matafeo
stars in affable comedy Baby Done,
the title drawn from the trifecta
often believed to define adult life:
mortgage, marriage then “baby —
done”. Of course, only one of the
three can happen by accident, and so it
proves for Matafeo’s Zoe, an Auckland
tree surgeon of adventurous bent, left
as is custom to stare aghast at her
pregnancy test.
The comedy is matter-of-fact, the
story wilfully slight. Once Zoe breaks
the news to milktoast boyfriend Tim
(Matthew Lewis), old-school gender
roles turn on their heads. She acts out in
borderline denial, he books antenatal
classes. But really, the plot is a shrug, a
loose string of good-natured skits to
showcase Matafeo’s likeability.
Still, the movie can’t resist jabbing at
the Stepford conformity of pregnant
couples. That title, it turns out, should
begin with the definite article. Endlessly
stuck in twee conversations about doing
the right thing for baby, baby’s due date,
and what might or might not be good for
baby, Matafeo scowls. The baby, she
adds every time, puncturing the mood
like a woman sticking pins in balloons
at a gender reveal party. The popping is
a joy.
On digital platforms in the UK from
January 22
‘76 Days’ is a
real-time record
of the first
Coronavirus
outbreak in
Wuhan. Below:
from left, Emily
Barclay, Rose
Matafeo and
Matthew Lewis
attend a baby
shower in ‘Baby
Done’
Thursday 21 January 2021
As the European bloc’s first uniformed armed force, Frontex is key to its efforts to secure its borders. But
the agency has been hit by allegations of helping to send migrants back to countries such as Turkey.
T
he camera lingers first on
the EU’s circle of stars insig-
nia and then shifts to a
close-up of the officer’s side
cap, styled similarly to
those used in the US military and
French police. The man salutes in front
of a logo for the armed force he repre-
sents: the Frontex European Border and
Coast Guard.
Set to stirring music, the promo video
to celebrate the launch last week of
Frontex’s first uniform is a 77-second
microcosm of a profound change in EU
migration policy. The 27-member Euro-
pean bloc may not have the army that
some cherish, but in order to protect its
borders it now has its first weaponised
corps, which is due to swell to 10,000.
To its supporters, Frontex — a once-
obscure agency based in Warsaw — has
become key to the EU’s strategy of con-
trolling entry to its territory. It is an
important milestone in the bloc’s efforts
to create functioning institutions that
can implement its security and foreign
policy objectives. The US, some Euro-
pean officials like to point out, had a
coastguard before it had its own navy.
Critics, by contrast, see Frontex as the
spearhead of a militaristic “Fortress
Europe” strategy that has been plagued
by allegations of abuses and lacks suffi-
cient accountability. Giulia Laganà, a
migration specialist at the Open Society
‘Frontex wants to be the
equivalent of homeland
security in the US . . . to
keep out as many people
as possible’
European Policy Institute, brands the
Frontex video a “ludicrous” example of
the “utter hypocrisy” of the EU’s “failed
migration policy”.
“Frontex want to make themselves
look like the equivalent of homeland
security or ICE [Immigration and Cus-
toms Enforcement] in the US,” she says.
“The objective is keeping as many peo-
ple out of Europe as possible, by any
means possible.”
As it gains a higher profile, Frontex is
facing a growing docket of concerns. On
the same day the new uniform was
unveiled, reports revealed that its head-
quarters had been raided in December
by investigators from Olaf, the EU’s anti-
fraud office. The agency has also come
under increasing pressure from the
European Commission over its alleged
failures to implement human rights
safeguards and write crucial rules
including on how its agents should use
firearms.
Most pressingly, Frontex faces an
inquiry into multiple claims that it has
been complicit in illegal “pushbacks” of
refugees trying to enter the EU on foot
or in flimsy boats. This can endanger
migrants’ lives at sea or leave them
stranded in countries such as Bosnia,
sometimes in makeshift camps. Such
actions also deny people the right to
apply for asylum, even though some
may be fleeing conflict zones or seeking
refuge from persecution. Initial results
of the review, set up by Frontex’s own
management board, which comprises
representatives of EU member states
and the commission, are due to be
discussed today. The report is likely to
fuel the already intense battles over the
agency’s activities and future.
Frontex defends its record in
response to questions by the FT. It says
it is co-operating with the Olaf probe,
adding that raids like last month’s “do
not necessarily imply any malpractice”.
It says an internal inquiry had made a
preliminary finding that there was no
evidence of involvement in pushbacks
by Frontex staff, or officers deployed in
Frontex operations.
It also points to the scale of its trans-
formation and its landmark status in
the 70-year history of the EU and its
forebears. “The creation of the EU’s first
uniformed law enforcement service is a
Herculean task,” it says.
Money and mandate
The story of Frontex is also the tale of
how migration has become a dominant
theme in EU politics since it sparked a
crisis in 2015. In that year, more than 1m
people arrived in the bloc, many from
civil war-racked Syria, triggering border
closures by some EU states and bitter
arguments about where the refugees
would go. The policy debate since then
has revolved around how to prevent a
repeat. This has stoked deep divisions
between Mediterranean nations that
want to redistribute arriving asylum
seekers around Europe, and states such
as Hungary that refuse to take any.
One of the few big policies member
states have managed to agree on is the
need to beef up Frontex. The 15-year-
old agency was given the task in 2019 of
building a standing cadre of 10,000
officers by 2027. It says it will have hired
★ FINANCIAL TIMES
FT BIG READ. IMMIGRATION
By Michael Peel, Kerin Hope and Laura Pitel
EU border force faces
scrutiny over growing role
An Albanian 1,000 of those by the end of this year,
border police with the remainder to be made up of
officer (right) secondees from national authorities.
and his Frontex The agency’s budget has grown from
counterpart on €142m in 2015 to €460m last year.
the Albania- Frontex also enjoys top-level support.
Greece border In 2018 Angela Merkel, chancellor of
near the city of Germany, which took in more than 1m
Korca; right: the refugees from the 2015-16 arrivals,
agency’s staff backed Frontex in a speech to parlia-
with rescued ment. “The question of fighting illegal
migrants in migration means we have to strengthen
Malaga, Spain; external border protection,” she said.
below: Monique “That means also that the countries
Pariat, the EU’s with an external border must give up
director-general some of their national responsibilities.”
for migration But the speed of Frontex’s growth in
and home both money and mandate has fuelled
affairs, and
Fabrice Leggeri,
questions about the agency’s govern-
ance. These are magnified because of
Frontex its mandate to deploy in neighbouring
executive countries such as those in the western
director Balkans and co-operate with still far-
AFP via Getty Images /
ther-flung nations.
NurPhoto via Getty
“If you give an organisation a lot of
money and you constantly reiterate that
they are at the centre of migration pol-
icy, you get this inflated sense of impor-
tance,” says Hanne Beirens, director of
the Migration Policy Institute Europe
think-tank. “Because of that there has
been less emphasis on making sure
there is a control mechanism on the
activities of Frontex.”
As Frontex grows, the EU’s migration
neuralgia has continued to flare, despite
irregular arrival numbers falling to
a fraction of 2015-16 highs. While
national authorities and Frontex have
faced questions over allegations of bor-
der violence in several countries,
including Croatia and Hungary, the
Mediterranean and Greece in particular
have become the centre of attention.
Greece’s neighbour Turkey is home to
around 4m refugees and migrants, the
vast majority of them Syrians, and also
serves as a transit point for people seek-
ing to reach Europe from Afghanistan,
Pakistan, Iran and African nations.
Last March, Turkey’s president Recep
Tayyip Erdogan followed through on a
threat to “open the gates” to refugees.
The move showed the fragility of a 2016
deal under which Turkey has received
billions of euros in EU funding in
exchange for taking back refugees who
have travelled from its soil to Greek
islands. Thousands travelled to the bor-
der with Greece, which Ursula von der
Leyen, European commission presi-
dent, then praised as the EU’s aspida, or
shield. Media investigations later sug-
gested two men may have been shot
dead by Greek security forces — allega-
tions Athens denies.
In September, fires at the Greek island
refugee camp of Moria left thousands
homeless and exposed the squalor of the
overcrowded facility. Ylva Johansson,
EU home affairs commissioner,
unveiled a proposed new migration
“pact” the following month with the
declaration that the bloc should have
“no more Morias”. She acknowledged
that the disaster and its aftermath
showed the “failure” of the EU to agree
needed migration and asylum reforms.
But critics of the bloc see the Greece-
Turkey border troubles and the Moria
conflagration as features of EU migra-
tion policy, not bugs. “Greece has fol-
lowed hardline policies carried out in
the UK and EU, with the protection of its
partners, after Ursula von der Leyen
called it the ‘shield’ of Europe,” says
Epaminondas Farmakis, co-founder of
Greek activist group HumanRights360.
Marine frontline
Frontex operates in the Aegean Sea
under the banner of Operation Posei-
don. It deploys vessels and aircraft
mostly seconded from EU countries and
co-operates closely with Greece’s small
coastguard. Frontex says it supplies
almost 600 “guest officers”, who per-
form border surveillance and assist in
the identification and registration of
incoming migrants, as well as debriefing
and screening.
The Aegean has become a centre of
allegations of pushbacks of migrants, in
contravention of international law and
what are supposed to be EU norms.
Louay Alnassar, a 33-year-old Syrian IT
specialist living in Turkey, claims he was
the victim of a pushback in March 2020.
He says he paid €2,500 to cross from
Turkey to the Greek island of Rhodes at
night in a rubber dinghy with 17 other
people. They landed on a deserted
beach at 6am and were picked up
shortly afterwards by a police patrol.
Mr Alnassar says he and his fellow
travellers were locked up with very little
food and water for two days, during
which no one took down their details.
On the second night, masked security
force agents took them to a port and put
them on a coastguard boat that sped out
to sea for about an hour. “They took our
phones and pushed us into orange life
rafts, shouting at us the whole time,” he
recalls. “We drifted in the dark for about
two hours, then a Turkish coastguard
boat picked us up.”
Greek authorities either deny that
pushbacks occur or claim the country is
protecting its national borders accord-
ing to international law. Kyriakos Mitso-
17
takis, prime minister, said in August
that pushbacks “didn’t happen” and
claimed his country was the victim of a
“serious misinformation campaign”. In
September, Giannis Plakiotakis, ship-
ping minister, said Greece had “pre-
vented the entry of more than 10,000
people since the start of the year”, while
avoiding saying exactly how.
“Greece neither orchestrates nor
encourages the so-called pushbacks,”
the migration ministry in Athens told
the FT.
Agency linked to ‘pushbacks
Frontex has faced allegations of com-
plicity in these illegal pushbacks, from
human rights groups, media reports and
other sources. A joint probe published
by international journalistic outlets and
investigative groups in October found
six incidents in which the agency was
allegedly either directly involved in, or
near to, a pushback. In a separate Octo-
ber incident, Swedish coastguards said a
‘If you reiterate that they
are at the centre of
migration policy, you get
this inflated sense of
importance’
Frontex co-ordinating officer discour-
aged them from filing a so-called “seri-
ous incident report” after they saw a
pushback into Turkish waters by Greek
authorities off the island of Chios,
according to a written exchange
between Frontex and its management
board seen by the FT.
Frontex declines to respond specifi-
cally to alleged incidents, citing ongoing
inquiries into them. It says it is co-oper-
ating closely with the working group
review of the allegations set up by Fron-
tex’s management board. If necessary, it
would upgrade its reporting mechanism
to “make sure no possible violation of
fundamental rights goes unreported,” it
adds.
Human rights concerns
The pushback allegations play into
wider claims that Frontex pays insuffi-
cient attention to oversight of human
rights. Far from forcing member state
authorities to do better, its critics say, it
has failed to hold them to account.
“It’s a very closed agency, I must say,”
says Tineke Strik, a Dutch Green politi-
cian, who has examined Frontex as a
member of the EU parliament’s com-
mittee on civil liberties, justice and
home affairs. “It’s very difficult to find
out if the procedures that are in place,
such as for serious incident reports and
complaints, are effective enough.”
The European Commission is also
scrutinising Frontex’s performance.
It says it is “deeply concerned” about
reports of pushbacks and non-compli-
ance with EU laws on human rights
and the right to access to asylum
procedures.
Monique Pariat, the commission’s
director-general for migration and
home affairs, raised a series of problems
in a letter sent last month to Fabrice
Leggeri, Frontex’s executive director,
and seen by the FT. Ms Pariat attacked
Mr Leggeri over the way he had pre-
sented “a number of important points”
to the commission and EU legislators.
Ms Pariat alleged Frontex acted
unlawfully by publishing job vacancies
for a fundamental rights monitoring
officer and deputy without manage-
€460m
Frontex budget last
ment board approval. She also pointed
to unjustified delays in Frontex recruit-
year, up from €142m in ment, including of 40 fundamental
2015 rights monitors. She added that the
agency had made inadequate prepara-
tions for its standing corps, including a
~4m
The number of
delay in drawing up draft rules on the
carriage and use of weapons.
refugees and Frontex says it fully respects human
migrants currently rights and points to the difficulties of its
in Turkey task, particularly during the global
health crisis. It regrets any miscommu-
nications that might have occurred in its
94,950
Mediterranean land
work with EU member states and insti-
tutions. “Unfortunately, some misun-
and sea arrivals to the derstandings in such demanding times
EU in 2020, compared and online discussions are unavoid-
with a peak of able,” it says.
1,032,408 in 2015
(Source: UNHCR) The Frontex promo video encapsu-
lates wider questions about the
agency’s commitment to transparency.
Frontex would not confirm the identity
of the model — whose name tag read
“Mihail Gan” — or whether he even
worked for the agency. It denies that his
garb was the “militaristic uniform of
the armed forces”, adding that it has
been endorsed by the commission and
member states.
Frontex officers will become ever
more visible as the first public face of the
EU seen by many arrivals. Even as con-
troversy over its activities grows, its
influence continues to expand. As the
agency itself puts it, the European bloc’s
unprecedented border force is already
“becoming a reality”.
18
THURSDAY 21 JANUARY 2021
Biden starts to repair
the American republic
Inaugural address was a call for a return to US norms and values
Since at least the time of Abraham
Lincoln, US presidential inauguration
speeches have contained appeals to
unity. Rarely since then has unity been
such a central or oft-repeated theme as
it was of Joe Biden’s address yesterday
— but rarely, too, has American
democracy felt as fragile as today.
Speaking in the presence of massed
security to guard the Capitol from
violence but in the absence of massed
crowds and of his own predecessor, Mr
Biden called for a fresh start. Yet it was
a call for a return: to truth and decency,
to the respect for liberty, institutions
and rule of law that have long been the
source of America’s extraordinary
dynamism, and its standing in the
world.
The tasks of the 46th president differ
from those of so many forerunners in
their sheer magnitude. Containing a
mismanaged pandemic that has cost
400,000 lives and brought economic
pain to millions would be hard enough
for most presidencies. As Mr Biden
acknowledged, the burden of
responsibility confronting him is
weightier still: to soothe gaping social
divisions, repair the American
republic, and restore its moral reputa-
tion. Those undertakings will long
outlast his presidency. How he
performs in office will nonetheless
determine in no small part whether
they can ultimately succeed.
To begin rebuilding trust in politi-
cians and institutions, Mr Biden must
start close to home, with an effort to
restore some semblance of bipartisan-
ship to Washington politics. His record
as a lawmaker ready to reach across the
aisle equips him better than most. His
campaign, and how he has conducted
himself in the 10 tumultuous weeks
since then, have demonstrated his
fundamental decency and character,
reflected in his pledge yesterday to “be
a president for all Americans”.
India’s precarious
investment climate
The country can woo foreign investors with a level playing field
Last year, India celebrated a milestone
in its long campaign to attract foreign
direct investment, crossing the $500bn
mark in cumulative inflows over the
past two decades. For the government,
it was a welcome piece of good news
and a sign that overseas interest
remained undimmed. The numbers,
however, obscure a less promising
reality. India’s economy, hard hit by the
pandemic, has fallen into recession and
there are worrying signs that the
government of Prime Minister Naren-
dra Modi, far from pursuing a path of
liberalisation, is turning inwards.
There are good reasons to scrutinise
the supposed momentum behind the
foreign investment influx. While for-
eign companies, including Amazon
and Walmart, have gained footholds, a
shifting regulatory environment has all
too often sent the wrong signal to
international investors. And although
Silicon Valley money poured in last
year, a large chunk was directed at a
single company: Jio Platforms, the
telecom-and-digital services arm of
Mukesh Ambani’s Reliance Industries,
which attracted more than $10bn from
the likes of Facebook and Google.
Foreign companies may be investing
but the overriding trend is still through
joint ventures or by taking minority
stakes in companies owned by
powerful Indian entrepreneurs. James
Murdoch recently reunited with Uday
Shankar on a media venture. All too
often, the sums involved are not large
and appear to be more defensive plays
than a serious attempt to commit to the
Indian market.
There are longstanding concerns
that Mr Modi’s government, far from
being the business-friendly adminis-
tration that executives had hoped for
when his Bharatiya Janata party came
into power has, at best, an ambivalent
attitude towards foreign investment. It
has proven itself to be, in essence, an
Bipartisanship, however, will require
the co-operation of his political adver-
saries. Though Democrats now control
Congress, the behaviour of Republi-
cans in opposition will be a vital deter-
minant of Mr Biden’s success.
The admission of Mitch McConnell,
the most senior Senate Republican,
that the rioters who stormed the
sanctum of US democracy two weeks
ago had been “fed lies” and “provoked
by the president” seemed a belated
recognition of the danger at hand. Yet
his party’s record gives little cause for
comfort. It still has a long way to go in
repudiating Donald Trump and
Trumpism, and reassembling its once
broad electoral coalition.
Though Mr Biden avoided the
subject, restoring respect for the rule of
law must also mean holding Mr Trump
and the Capitol mob accountable, as
well as facilitating a Senate trial for
impeachment. The former president’s
role is a matter, too, for the criminal
courts. Cleaving to unity and healing
while allowing justice against his
predecessor to take its course will be a
treacherously fine line, but one Mr
Biden cannot avoid.
America has taken a critical step to
return to a culture of truth. The incom-
ing administration will also have to
mend trust in traditional media, and
find ways to curb hate speech and
misinformation on social media
platforms. Only if Americans feel they
are all living in the same reality can the
country truly move forward.
Just as Mr Trump’s inaugural speech
invoking “American carnage” set the
tone for his presidency, so it should be
hoped that Mr Biden’s appeal for an
end to “uncivil war” will define his
own. The pressures on him and the
expectations are immense. We must
wish him luck and hope that he
succeeds. America — and the world —
cannot afford to see him fail.
economic nationalist government.
Regulation has remained unpredicta-
ble and frequent policy changes,
including the recent increase in import
tariffs, have fostered uncertainty.
The precariousness for international
investors has been exacerbated by New
Delhi’s ambivalent attitude to the rule
of law, in particular in reference to two
corporate tax disputes, with Vodafone
and Cairn Energy, which had gone to
international arbitration. They stem
from a decision by the previous Indian
government in 2012 to change the tax
code retrospectively, a move that gave
it the power to claim taxes for deals
struck years earlier if the underlying
assets were in India. The government
lost its case against Vodafone in Sep-
tember and against Cairn in December.
The government has since chal-
lenged the Vodafone ruling. Business
expects it to do the same in the Cairn
case. It is time for the government to
accept the rulings. It should also make
clear that it will no longer use or follow
up on retroactive tax claims. Both
actions would send a powerful signal
that India is committed to the fair
treatment of investors. Mr Modi com-
mands strong popular support and
should ignore dissenting voices that
believe the government would look
weak to its domestic audience.
There is a risk that the recent back-
lash that has greeted government
proposals to modernise India’s agricul-
tural sector might reduce the incentive
to liberalise in general. This would be a
shame. As western companies seek to
diversify their operations from China,
India has a unique opportunity to
become an alternative destination for
manufacturing investments.
As China has shown, export-oriented
manufacturing is a critical factor for
economic growth. India has a valuable
opportunity to signal that it is open for
business.
★ FINANCIAL TIMES
Letters
Wind industry has a role to play in levelling up the economy
Melanie Onn, deputy chief executive of
RenewableUK, is correct in her
assertion that the industry “will
become increasingly important in the
years ahead” (“Wind industry can
revive UK coastal communities”,
Letters, January 18). It can hardly fail
as it is backed by the UK government
which mandates every electricity
consumer in the country to pay a
surcharge to maintain it in the style to
which it has become accustomed.
If future UK electricity prices fall, the
wind farm developer is supported; if
A better way to spend
Ineos’ Oxford gift
After reading “Ratcliffe’s Ineos makes
£100m Oxford donation to tackle
antibiotic resistance” (Report, January
19), my first thought was if half as
much money was invested in
preventive practice in human primary
care and animal welfare, antimicrobial
resistance (AMR) would be
substantially de-fuelled, giving Ineos,
Oxford university and others a much
longer runway to get next-generation
cures developed, trialled, peer
reviewed and commercialised.
Around half of the global rise of AMR
has a urinary source. Unlike its
diagnostic counterpart blood, there is
no protocol around specimen
collection for point of care urine
testing. This creates contamination
rates that range from below 1 per cent
to over 70 per cent, making prompt
safe treatment a national lottery.
Guidelines for very common urinary
tract infection recommend immediate
treatment with a broad spectrum
antimicrobial; if this doesn’t work, then
culture followed by targeted medicine
is advised. This advice is in direct
contrast to AMR guidelines, which
advise identifying problem bacteria so
a targeted antibiotic can be prescribed.
When I tried to get a government
policy adviser to consider introducing a
protocol for urine for reasons noted
above, I was told to “go and talk to
nurses”. But if those with the power to
make such a basic and fundamental
change decline to do so, we know we
are in trouble.
Giovanna Forte
Chief Executive, Forte Medical
London WC1, UK; Irvine, CA, US
Health worker loss adds to
poor states’ vaccine task
The “catastrophic moral failure”
highlighted by the director-general of
the World Health Organization, with
rich countries accused of not doing
enough to ensure vaccine supply to
poor countries, is greatly compounded
by the active recruitment of health
workers from low and middle income
countries without recompense, leaving
health systems in those countries
greatly weakened (Report, January 19).
The UK government needs to
urgently address its ethical
responsibilities to those poorer
countries by increasing its financial
contributions to Covax, WHO’s flagship
vaccine distribution scheme, as well as
by reinstating the recently cut
international aid budget.
Rachel Jenkins
Professor Emeritus, King’s College London
Former Director, WHO Collaborating
Centre, Moccas, Herefordshire, UK
A power
outage dims
hopes for
climate action
Mexico
Notebook
by Jude Webber
they rise, the developer takes the
upside.
Lacking the ambition, possibly the
competence too, the government is not
using its vital support of the wind
industry as a vector for change and the
industry itself is not prepared to take
on that role.
Perhaps that is a result of the
hollowing out of the Thatcher-era
privatisations that left UK utilities
weakened, in the hands of financiers
and overseas interests, focused on
bonuses, dividends and the box ticking
Printing money is not
under way, at least not yet
Perhaps it reflects the attention
Modern Monetary Theory has received
of late, but it is striking how many
people, even those who should know
better, confuse quantitative easing with
the printing of money to finance
government deficits (“Bondholders will
suffer with higher inflation ahead”,
Opinion, January 20).
Governments across the developed
world have transferred money to
households and firms in order to
support incomes during the pandemic,
but these funds are not sourced from
the respective central banks and, other
than the scale involved, are exactly
analogous to normal transfers, such as
unemployment benefit.
Of course the scale is enormous and
that is reflected in the size of fiscal
deficits, but these are being funded via
debt issuance, as is the norm. Yes,
central banks are buying some of this
debt (QE), which helps to depress the
interest paid, but that is not the same
as governments funding deficits
directly by printing money. One can
debate the merits of the latter, but it is
not in operation, at least as yet, across
the major economies.
Dan McLaughlin
Dublin, Ireland
Banning despots from
social media is tricky
James Bosworth suggests that “Despots
everywhere should lose social media
accounts” (Opinion, January 19). The
conundrum is, your despot is my hero.
Who then should decide who gets
gagged? And this approach seems hard
to reconcile with the FT banner
“Without fear and without favour”.
KM Choy
Singapore
It was mid-afternoon on the Monday
after Christmas when the messages
started flooding Twitter: power cut.
No lights. First the reports came from
different parts of Mexico City, then
across the country.
As 10.3m users had their electricity
abruptly shut off, it soon became clear
that this was not the usual kind of
local outage in a country where
telegraph poles are often tangled with
illegally-connected wires used to steal
electricity — known as “little devils”.
This was a significant event. The
CFE, the state electricity company —
which perhaps advisedly seems to
have stopped advertising itself as “a
world-class company” — tweeted that
cutting off users was necessary to
avoid pulling the plug on the entire
national grid.
According to Manuel Bartlett, CFE’s
director, in numerous press briefings,
the culprit was renewable energy.
Because renewable power is
intermittent — sunshine and wind are
not constant — and must be backed up
by other sources, it puts strain on the
system. It is an argument the
government has used repeatedly in its
attempt to reduce renewable energy
producers’ participation in the sector.
Yet, back in 2015, the White House
hailed Mexico as “setting an example
for the rest of the world” after it
became the first developing nation to
submit climate change pledges,
including generating 35 per cent of
electricity from clean energy by 2024,
ahead of the landmark Paris
agreement. President Andrés Manuel
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
required to ensure continued
government support, rather than
technology and the wellbeing of the
communities they serve.
Unsurprisingly, both the leading
company in the UK wind industry,
state-owned Orsted (based in
Fredericia, Denmark) and Ms Onn’s
own lobbying organisation have chosen
to locate their UK headquarters in
London rather than in windswept
communities such as Grimsby or Hull.
And while some blades, cables and
foundations are made in the UK,
The first step is to accept
BoE role in debt build-up
Whether Professor Charles Goodhart
(Letters, January 19) is being “serious
or sardonic”, finance ministers and
economists will no doubt consider such
accounting subterfuge seriously. Which
highlights the problem, does it not?
Let’s please hear from the economics
profession. How about starting with the
recognition that in the UK it is the
Bank of England that has
accommodated the explosion of public
and private borrowing, via excess
reserve creation and its ultra-low
interest-rate policy? Without such
recognition, the good professor’s
expertise in financial jiggery-pokery —
real or pretend — will doubtless be
called on to devise rather more
complex schemes in the future.
Geoffrey Blanning
London SW13, UK
The idea looks uncannily
like a tax on banks
Charles Goodhart’s suggestion that
government debt could be reduced
simply by paying zero interest on
banks’ excess reserves and excluding
the corresponding Treasury paper
from the aggregate measure of
government debt (Letters, January 19)
entails some sleight of hand. If, when
interest rates rise, banks are
“prevented from . . . a subsequent
massive credit expansion by requiring
capital or liquidity ratios” designed to
lock in these excess reserves, this is a
tax on the banks. And, clearly, higher
taxes can reduce government debt. The
argument that such higher prudential
ratios increase resilience is a case for
more stringent prudential ratios in
general, not for using them to impose a
hidden tax in these particular
circumstances.
Leslie Lipschitz
Former Director, IMF Institute
Boothbay Harbor, ME, US
Europe’s old monarchies
did it, so why not the US?
It is ironic that Europe’s ancient
monarchies long ago dispensed with
the idea of an arbitrary royal pardon,
on the grounds that it was
undemocratic and flew in the face of
the rule of law, and yet the modern,
anti-monarchical US still clings to this
outdated form of patronage, which
almost invariably ends up as a form of
corruption (Report, FT.com, December
23). Perhaps the sight of the dozens of
pardons that Donald Trump is handing
out to his cronies will persuade Joe
Biden to abolish the practice?
Stephen Porter
London NW6, UK
López Obrador’s championing of fossil
fuels has changed all that. Only about
6 per cent of Mexico’s electricity
comes from renewables even though
the cost of green generation is less
than half that of gas-fired or other
thermal power plants. The
government has spent months trying
to force through ways to squeeze
private players in favour of the CFE.
Mexico skipped a summit last
month designed to review progress
towards the Paris climate goals. Two
weeks later, in a cosmic come-
uppance, the power cut happened. It
seemed to underscore Mr López
Obrador’s determination to impose
his statist vision on Latin America’s
second-biggest economy even if, quite
literally, the lights go out.
Independent energy experts say the
government’s aversion to green Power
generation is political — many other
countries rely heavily on renewables.
They say that the problem with the
grid has more to do with under-
investment in transmission lines,
which are under CFE control.
For the president and Mr Bartlett,
the CFE is unfairly criticised. Mr
López Obrador says the neoliberal
policies of his predecessors would
have privatised the sector and killed
off the CFE. Courts have blocked
repeated attempts by officials last year
to ram through rule changes, such as
increasing transmission tariffs on
companies generating their own
electricity and stalling permits, but
investors are alarmed.
Now Mr Bartlett has seized on the
Thursday 21 January 2021
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
compared with the success of the old
Central Electricity Generating Board in
directing postwar British industrial
communities in the building of their
own essential, enduring infrastructure,
this is small beer.
Meanwhile, British politicians, civil
servants and advisers contemplate
bureaucracy and regulation, the
Treasury in Todmorden, as a solution
to the growing income divide between
North and South.
Alistair Mackie
Ely, Cambridgeshire, UK
How the Fed restrains
bond yields will be critical
Lex is wrong to suggest that the US
bond market has no real concern with
rising inflation (January 19). The main
reason that US Treasury inflation-
protected securities (TIPS) have
performed so well in the last couple of
years, and driven real yields into
negative territory, is that the far larger
market for conventional Treasuries has
performed well, driven by investors
hungry for yield in a market distorted
by Federal Reserve buying.
As Lex points out, with consumer
price inflation currently at 1.4 per cent
and generally expected to rise, and the
10-year yield on conventionals at 1.1
per cent, investors in US Treasuries
will be losing out in real terms. The
yield on the equivalent TIP, at just
below minus 1 per cent, suggests that
investors should buy TIPs ahead of
conventional bonds if they think the
CPI is going to run at above 2 per cent
on average over the next 10 years.
The disconnect between the real
world and the distorted bond market is
even worse in the UK, where yields on
conventional 10-year gilts are at 0.3 per
cent and on the equivalent UK
“linkers” at minus 2.7 per cent. This
does not mean that UK bond investors
think that inflation will be below 0.3
per cent, rather it tells us they think
inflation will be about 3 per cent
(roughly 2.7 per cent plus 0.3 per cent),
and that if you think inflation will be
above 3 per cent you should buy
linkers ahead of conventional gilts (all
these figures are very approximate and
are not recommendations).
What bond markets show is how
quantitative easing has successfully
driven yields down to very low levels
but at the cost of undermining
traditional measures of bond valuation.
The valuation measure between index-
linked bonds and conventionals does
still hold, but the relationship between
government bonds in general and
expected inflation does not.
If inflation does rise in the next few
years, as most economists seem to be
predicting, will the Fed and other
central banks be able to hold down
bond yields or are we about to see
another long-term bond market
haemorrhaging of money?
John K Thomson
Edinburgh, UK
Clarification
c A Tesco plan referred to by Lex on
January 15 as a share buyback consists
of a £5bn special dividend combined
with a proportionate share consolidation
and cancellation intended to mitigate a
share price fall on the ex-dividend date.
outage to have another go. The former
minister is notorious for another
system crash: the vote count in the
1988 presidential election, which he
was in charge of. It suspiciously failed
as the ruling PRI party was lagging
behind. When the system came back
up, the PRI won.
The December 28 power cut was
similarly tainted by fraud allegations.
The CFE said the outage was triggered
by a fire under transmission lines in
the northern state of Tamaulipas and
presented a letter, purportedly from
the state civil protection agency, to
support its claims. But the letter was
fake — as the CFE and Mr López
Obrador were finally forced to admit.
Mr Bartlett stuck to his core
assertion: the real reason the
transmission lines were so strained
was because of renewables. As a
result, the supposedly independent
electricity market operator, Cenace,
would be “obliged” to remove some
renewable generation. Meanwhile, Mr
López Obrador is building a new oil
refinery. He has vowed to boost coal-
fired generation and wants green
power to come from CFE-owned
hydropower plants. Mexico’s Paris
pledges now look out of reach.
Back when Washington was lauding
Mexico, Joe Biden was vice-president.
As he enters the White House, Mr
López Obrador’s policies look more
like those of climate change deniers
such as outgoing President Donald
Trump and Brazil’s Jair Bolsonaro.
jude.webber@ft.com
Thursday 21 January 2021
Democratic Unionists are now Irish reunification’s secret weapon
politics
Robert
Shrimsley
T
his year marks Northern
Ireland’s centenary. But,
given the effects of Brexit,
few are betting on there
being a 125th birthday.
While post-Brexit talk of UK disintegra-
tion focuses on the more immediate risk
of Scottish independence, the narrative
rarely excludes the province.
And with good reason. The Brexit
terms keep Northern Ireland inside the
EU customs union and single market for
goods, weakening its legal and commer-
cial ties to the UK. The first weeks of
Brexit have amplified this. British retail-
ers halted some supplies while they
Dear Mr Biden,
debt and deficits
still matter
Ruchir
Sharma
N
ew US president Joe Biden
arrived at the White
House yesterday with
splashy plans for $1.9tn in
new stimulus, buoyed by a
solidifying consensus in the American
elite that deficits don’t matter.
Warnings that rising deficits will
reignite inflation and undermine the
dollar have proved wrong for decades,
so deficit hawks are increasingly easy to
mock as crotchety old scolds. The new
view, expressed by leading figures from
the IMF, academia and media, is that
with inflation long dead and interest
rates at record lows, it would be unwise,
even irresponsible, not to borrow to
boost the economy. The amounts — bil-
lions, trillions — hardly matter, espe-
cially not for the US, which still has the
world’s most coveted currency.
Mr Biden captured this elite view
perfectly when he said, in announc-
ing his spending plan: “With interest
rates at historic lows, we cannot afford
inaction.”
This view overlooks the corrosive
effects that ever higher deficits and
debt have already had on the global
economy. These effects, unlike roaring
inflation or the dollar’s demise, are
not speculative warnings of a future
crisis. There is increasing evidence,
from the Bank for International Settle-
ments, the OECD and Wall Street
that four straight decades of growing
government intervention in the
economy have led to slowing product-
ivity growth — shrinking the overall pie
— and rising wealth inequality.
Michael
McKinley
I
t has been said that “only truth” will
save democracy in the US. To that I
would add another corrective, “and
the rebuilding of our institutions”.
Because, alongside everything else,
Donald Trump seriously eroded the
functionality of government during his
presidency.
In fact, the expectation that this could
be restored with the stroke of a pen
yesterday, as if the past four years was
only an unfortunate interregnum, is
mistaken.
The outgoing administration made a
number of changes that may be difficult
for the incoming administration to
reverse. Some of these moves were
highly visible — such as former
secretary of state Mike Pompeo’s
grappled with the new trade rules. Cus-
toms checks stymied hauliers with mul-
tiple loads, and there are fears over the
looming expiry of a grace period on
health certification for food products.
While ruling out an early push for
reunification, the Irish Republic is play-
ing a long game. The taoiseach, Micheál
Martin, has created a Shared Island ini-
tiative, with €500m for cross-border
projects. Dublin also took on the cost of
keeping Northern Irish students in the
EU’s Erasmus university exchange
scheme, another tie to the youth of the
North. The strategy is plain: polls show
higher support for unification among
younger voters. Meanwhile, gentrifica-
tion is loosening the unionists’ grip on
old strongholds. One observer high-
lights the coffee shops springing up in
the now-marginal seat of east Belfast.
And yet, there are reasons to resist
this easy narrative and unionist fatal-
ism. The arc of history may bend
towards reunification but it can be very
This research does not question the
use of stimulus during a crisis; the prob-
lems flow from the cumulative impact
of constant stimulus. That suggests
strongly that the growing scale of each
new infusion matters as well. Average
voters are justifiably befuddled by the
claim that governments can borrow
without limit or any consequences.
We calculate that last year the US and
other developed nations committed a
median sum equal to 33 per cent of their
gross domestic product to stimulus,
shattering the mark of 10 per cent set
back in 2008. Those figures do not
include the Biden plan, which will bring
total US fiscal stimulus to fight the
pandemic to more than $5tn, more than
the GDP of Germany or Japan. That’s
a lot for an economy to absorb in less
than a year, and Mr Biden plans a sec-
ond, more ambitious spending proposal
next month.
The administration argues that
low rates liberate governments to
borrow and spend in unlimited
amounts for the foreseeable future. But
this claim gets the story backward.
Instead of a path to freedom, low rates
are a trap. They encourage more bor-
rowing and rising debt, which drags pro-
ductivity lower and slows growth. That
makes the economy financially fragile,
forcing central banks to keep rates low.
Given today’s very high levels of debt,
only a small increase in interest rates
would make the debt burden unsustain-
able.
This “debt trap” is, despite elite dis-
missals, a real issue. Public debts in the
US and other developed countries aver-
ages about 110 per cent of GDP, up
from 20 per cent in 1970, according to
IMF data. During the Bretton Woods
system, from 1945 to the early 1970s,
many developed countries ran consist-
ent budget surpluses. Since then they
After Trump, the biggest job is to restore US institutions
measures on Taiwan, Iran and Cuba. But
some of the most egregious took place
largely outside the public gaze,
transforming military oversight and
civil rights mechanisms, and “burrow-
ing” Trump appointees into the US
bureaucracy.
In one example, Mr Trump sought in
an October executive order to erode the
independence of federal institutions
with the creation of “schedule F” civil
servants, who can be moved into
positions for which their statutory job
protections are eliminated. This puts
them at risk of being fired at will — and
of then being replaced by political
appointees. Essentially, it threw the
notion of a non-politicised federal
workforce out the window.
It will not be simple for the US to
correct course. Mr Trump caused
significant harm to the integrity,
systems and structures of federal
government. This risks becoming an
enduring legacy unless we examine
carefully how US institutions were
★ FINANCIAL TIMES
Opinion
long. Polling does not suggest a majority
in the province for a united Ireland. It
also shows deeper ties, such as attach-
ment to the UK’s NHS.
But nationalism has a secret weapon:
the Democratic Unionist party. The
strategic judgments of the province’s
largest party have been among the most
consistently witless in recent politics.
Pragmatism is prevented
by power struggles that
see party leader Foster
battling hardliners
One Tory MP fumes: “The DUP have
done more damage to the Union than
the IRA, Sinn Féin and all the nationalist
forces combined.”
Consider its record. The DUP backed
Brexit but opposed every manifestation
of it. There was no deal (including no-
have run consistent deficits, in good
times and bad.
Increasingly, the money printed by
central banks goes to finance govern-
ment debts. Many elites see this as fine,
since it has yet to revive consumer price
inflation. Though governments can
print all the money they want, they can-
not dictate where it goes, and much of it
has stoked a different kind of inflation —
asset price inflation. Since the 1970s, the
size of financial markets has exploded
from about the same size as the global
economy to four times the size. Most of
those gains go to the wealthy, who
are the main owners of financial assets.
As the era of constant stimulus gained
momentum, average wealth in the past
three decades has risen about 300 per
cent for US families in the top 1 per cent,
Four decades of government
intervention have led to
slowing productivity growth
and rising wealth inequality
undermined and how to prevent that
happening again.
Blaming individuals is insufficient. A
non-partisan commission is required,
similar to the 1947 Hoover Commission
— which explored the reorganisation of
the executive branch to meet the chal-
lenges of the postwar period; or the 9/11
The former president
threw the notion of a
non-politicised federal
workforce out the window
Commission — which laid the founda-
tions for an overhaul of US intelligence,
border, and law enforcement systems.
Both commissions addressed core defi-
ciencies, and came up with practical
solutions that were adopted.
Today, if a more focused effort is pre-
ferred, bipartisan congressional com-
mittees, working with the Government
deal) that it would support. It shot down
Theresa May’s withdrawal plan, which
maintained the integrity of the union,
allying with Boris Johnson — only to see
him sign up to a regulatory border in the
Irish Sea. In recent days, it has bellowed
betrayal over the new customs burdens,
demanding the suspension of the proto-
col governing these arrangements.
There are real concerns. But those
closely involved are exasperated at
hyperbolic talk of food shortages (as
opposed to loss of certain products).
They prefer to speak of problems being
ironed out thanks to the hard work of
business groups and goodwill between
the UK and the EU.
Some friction will remain and will
have an impact. While major retailers
will largely adapt, smaller suppliers
may conclude it is no longer worth
the hassle to serve Northern Ireland.
Some product lines may disappear and
businesses may start to look to the EU
for suppliers. As EU regulations on
200 per cent for the next 9 per cent, 100
per cent for the next 40 per cent, and
zero per cent for the bottom 50 per cent.
One out of 10 families in the bottom
50 per cent have negative wealth (they
owe more than they own).
When those on the left, such as Sen-
ator Bernie Sanders, promise much
more stimulus to come, they do not
make this link between stimulus and
rising wealth inequality. Yet Wall Street
traders do. They drive up asset prices
when Mr Sanders calls for more spend-
ing, or US Federal Reserve chair Jay
Powell promises continued monetary
support. They see these vows as more
money in their pockets.
But recent studies show that easy gov-
ernment money has ended up support-
ing the least productive companies,
including heavily indebted “zombies”
that would otherwise fail. The support
also favours monopolies that have
expanded not because of their innova-
tion but by lobbying governments for
favours and sidelining smaller rivals.
The OECD warned, in a 2017 study link-
ing falling productivity to easy money,
Accountability Office, could look at the
most affected agencies and recommend
what needs be done to restore them.
There is a lot of ground to cover, as
almost every government agency was
affected by Mr Trump’s presidency.
At the Environmental Protection
Agency, more than 1,000 employees left
or were forced out in the first 18 months
of the Trump administration. The EPA
then rolled back regulations by running
roughshod over reviews and science.
At the Department of Justice,
attorney-general William Barr went out
of his way to protect the president and
his inner circle from investigations,
while assisting those into political
opponents. Senior officials who raised
questions resigned, such as the head of
the election crimes branch, or were
fired, such as the attorney for New
York’s southern district.
At national security agencies, the
office of the director of national intelli-
gence was politicised to the point that
the integrity of its findings was openly
goods evolve, Brussels — and Dublin —
will exert a greater pull.
But against that are the commercial
advantages of being in both the UK and
EU single markets — something that a
more thoughtful leadership could sell as
a benefit of the Union.
This, however, is not the DUP path.
With its vote share down 5 per cent at
the last election and younger voters
going to the nonsectarian Alliance
party, the DUP is focused on squeezing
the vote of the smaller Ulster Unionist
party and stopping nationalist Sinn Féin
from emerging as the largest party in the
2022 Stormont elections.
Pragmatism is prevented by power
struggles that see DUP leader Arlene
Foster battling hardliners, some of
whom see leverage in making the
renewal of Northern Ireland’s special
status an issue in those elections. The
idea is to maximise the vote through
polarisation: magnifying every conflict
to portray the DUP as Union’s true
that these trends will make it harder for
societies to deliver “on their promises to
current and future generations”.
BCA Research recently demonstrated
that nations with big spending govern-
ments tend to suffer slower per capita
GDP growth. Similarly, Ned Davis
Research found that, since 1947, US gov-
ernment spending above 22 per cent of
GDP is correlated with periods of slower
economic growth. It warned that this
share has risen above 34 per cent during
the pandemic. My team also found a sta-
tistically significant link between peri-
ods of rising government debt and slow
GDP growth. These studies cannot show
causation but the consistent link
between growing deficits and weaken-
ing growth is unlikely to be coincidence.
Even those arguing for unlimited new
borrowing agree the money would be
best invested in roads, green energy, and
other projects that would boost produc-
tivity and future growth. Nonetheless,
comforted by the faith that deficits don’t
matter, Biden-backers are supporting a
plan stuffed with cash transfers, includ-
ing a $1,400 cheque for most Americans.
questioned. The inspectors-general of
the state department, the Pentagon and
the intelligence community, who watch
out for fraud and abuse, were fired. The
inter-agency coronavirus task force was
often silent in the face of the president’s
misrepresentation of the pandemic,
while a lack of transparency at top-level
meetings hampered the US response.
We can also add Mr Trump’s desire to
sabotage the postal service before the
election to hamper mail-in voting; the
Department of Homeland Security’s
measures to pressure local governments
during the Black Lives Matter protests;
the move to transfer the Department of
Agriculture’s researchers away from
Washington to influence their output;
and the use of the Department of Educa-
tion to limit transgender and sexual
assault victims’ rights.
These institutional disruptions had
real consequences. Foreign assistance
was used to extort political favours.
Environmental protections for
communities were struck down. The
19
defenders. It may work next year but it
is desperately short-termist.
There is a better way: making the
“best of both worlds” argument for the
Union, which the province’s hybrid state
allows.
Staving off reunification means not
forcing a choice. It means easing ten-
sions, not provoking them. It lies in
retaining younger moderate Protestants
and peeling the nonaligned from the
nationalist cause. It means winning
back people in those east Belfast coffee
shops, who look at Britain and Ireland
and see modern liberal economies and
are repelled by the sectarianism and
conservatism of older unionists.
Although the long term drift is
towards reunification, a hybrid state
could last longer than many imagine.
But this demands a shrewd unionist
leadership. On current showing, then,
perhaps the fatalism is justified.
robert.shrimsley@ft.com
Like many in the no-worries camp, Mr
Biden says more stimulus is urgently
needed to limit the damage from job
losses and bankruptcies. There was a
case for that while the economy was in
decline. But as vaccines roll out and nor-
malcy returns, injecting more stimulus
into a recovering patient is likely to do
more harm than good.
The average person understands
that there is no free lunch. The path to
prosperity cannot be so easy as to just
print and spend. If he relies on low rates
to fund further massive government
spending increases, Mr Biden will
double down on policies that have
magnified the problems he aims to fix:
weak growth, financial instability
and rising inequality. Decades of
constant stimulus have left capitalism
weaker, less dynamic and less fair,
fuelling angry populism. Deficits
matter for the damage they are already
inflicting.
The writer, Morgan Stanley Investment
Management’s chief global strategist, is
author of ‘Ten Rules of Successful Nations’
electoral system was undermined.
Deployment of the National Guard
came late when Congress was assaulted.
And 400,000 Americans had died from
coronavirus by the time Mr Trump
left office.
We cannot just move on and simply
turn the page on this. The harm to our
institutions is unlikely to be reversed
solely by the installation of a political
leader who respects the functions of
government. There needs to be a thor-
ough review and reckoning. Otherwise,
how will the American people be certain
that the rule of law, transparency, and
science will not be sidestepped again?
The US needs to feel confident it has
government institutions that can with-
stand any future president who may be
inclined to follow in Mr Trump’s foot-
steps. It is hard to see how our democ-
racy can survive intact otherwise.
The writer, a former ambassador to Brazil
and Afghanistan, resigned as senior adviser
to secretary of state Mike Pompeo in 2019
20 ★ FINANCIAL TIMES Thursday 21 January 2021

Netflix: the crowned

The streaming giant spends billions on content to drive up subscriber numbers. Although it plans to stop
relying on borrowing to fund operations, Netflix expects to maintain $10bn-$15bn in gross debt. Last year
it sold bonds at the lowest rate seen in the US high-yield market. Since then, yields have continued to fall.

Twitter: @FTLex
Alibaba:
Jack’s back
Alibaba has come a long way since
1999, when Jack Ma founded what has
become China’s biggest ecommerce
platform. The entrepreneur is no
longer essential to its smooth
management. Its shares did little when
Mr Ma, back in the public eye
yesterday, stepped down as chairman
or when he left the board a year later.
Paradoxically, Mr Ma’s recent woes
triggered a switchback ride for
investors. After he criticised Chinese
regulators, authorities threw the book
at Alibaba, though trouble had been
brewing for some time.
Roadblocks included an antitrust
crackdown and the suspension of the
$35bn initial public offering of Ant
Group, Alibaba’s financial offshoot. The
usually extrovert Mr Ma disappeared
from view. Its shares fell by a quarter
from October. Mr Ma reappeared in an
uncontroversial video yesterday
praising China’s teachers, a group he
once belonged to — and the shares
jumped up more than 9 per cent.
Mr Ma’s absence crystallised the
realisation among foreign investors
that China tech giants and their leaders
can expect peremptory punishment if
they step out of line. Mr Ma’s return
suggests a qualified rapprochement
with authorities — and hopes of one
between China and the US on the day
Joe Biden is sworn in as US president.
Those harmonising strains of mood
music are good for China tech groups
and their investors. They bring an
immediate benefit for Alibaba.
Amid escalating US-China tension
and low interest rates, local groups
have stocked up on dollars, with
Tencent raising $6bn in Asia’s largest
corporate debt deal last year.
Alibaba has been planning a bond
financing of its own to raise up to $8bn
this month. Much of the cash on its
balance sheet is in Chinese renminbi.
The timing of the deal looks better
with Mr Ma back in circulation and a
sensible president in the White House.
Alibaba is not out of the woods,
though. New antitrust rules mean it is
unlikely to keep its near-60 per cent
stranglehold on the local ecommerce
market. Official investigations could
result in a steep fine. Local lawyers
expect this could be as high as a tenth
of previous year’s sales.
Alibaba shares have lurked in the
gloom at 23 times forward earnings,
the lowest since listing in 2014. Mr Ma’s
return provides an entry point for
long-term investors. But they, like Mr
Ma, should remain wary.
BHP/coal:
smutty books
Investors may have dropped coal from
their portfolios but it still darkens
BHP’s balance sheet. In a quarterly
trading update published yesterday,
BHP impaired the value of its coal
assets by as much as $1.25bn.
This is mere nutty slack compared
with estimated 2021 ebitda 25 times
that amount. But it has taken BHP too
long to divest these stranded assets,
diminishing shareholder value in the
meantime.
To be fair, newish chief executive
Mike Henry did announce in August
that BHP would exit thermal coal and
dispose of its 80 per cent share in a
joint venture with Mitsui. This
produces lower-quality Australian
coking coal used in steelmaking.
This week’s impairment is linked to
the effect of lower expected coal prices
on mines’ future value. It may also
have something to do with the
exhaustion of tax loss credits BHP
carried for the coal mines, which
partially offset any loss of worth.
No one expects corporations to
ignore tax benefits that boost the
bottom line. But BHP should have got
out of coal earlier when the price was
better. Regardless of its recent ESG
problems, rival Rio Tinto did at least
see the light at the top of the mine
shaft. It began to sell off coal mines
from 2015.
BHP’s coal assets will attract few high
bids now. These provided some $4.4bn
of ebitda (almost a fifth of total) as
recently as 2018. Coal will make about
a quarter of that this year, on Jefferies
estimates. BHP is likely to receive a low
multiple of those earnings.
In next month’s annual results, Mr
Henry will tout booming profits from
iron ore and copper units. A restart of
the Brazilian Samarco joint venture,
following the 2015 dam disaster, will
add valuable iron ore tonnes. That
hints at the next issue ahead. Unless
steelmakers can find a way to
decarbonise steel production,
Netflix is spending more on content
Additions to content assets ($bn)
2014 15 16 17 18
FT graphic Sources: Netflix
Netflix’s hunger for external
financing is legendary. The streaming
giant has become one of the most
valuable US tech companies in equity
markets by leaning heavily on debt to
fund its day-to-day operations.
A massive 37m rise in subscribers
last year means that it now believes it
can rise from the sofa and stand on
its own two feet.
For millions of people, global
lockdown was alleviated by Netflix
shows such as Tiger King, The Crown
and Regency romp Bridgerton. It
remains far larger than latecomer
rivals such as Disney, Apple TV+ and
Peacock.
Netflix must also thank a dip in
spending for turning free cash flow
from minus $3.3bn in 2019 to positive
Mr Henry’s next challenge will be
dealing with the climate change impact
of BHP’s main product.
Aggreko:
generation flex
Aggreko, supplier of temporary power,
is hardly roaring back to life fast. Yet
the one-time stock market darling has
certainly reignited a spark, as testified
by yesterday’s upward nudge to full-
year profit guidance.
The Scotland-based company had a
phenomenal run lasting years. This
went into reverse early last decade.
Retrenchment in the energy sector and
the US military’s withdrawal from Iraq
— two key sources of business — put a
Global subscriptions are rising
Paid memberships (m)
US and Canada Europe, Middle East and Africa
0 200
Latin America Asia-Pacific
-2
-4
-6 2017 2018
Debt is growing cheaper
-8 Yield (%)
-10
BofA US Corporate & High Yield Index
-12
Netflix 2025 bond
-14
19 20 Apr
$1.9bn in 2020. As the pandemic shut
down film and television production,
the company’s content spend fell from
nearly $14bn in 2019 to slightly less
than $12bn in 2020.
This number will tick up in 2021. Yet
Netflix, which has $16bn of long-term
debt and more than $19bn in
“obligations” for content it wants to
stream, is confident it has reached
what chief financial office Spencer
Neumann calls “a turning point in our
story”. It is already promising to put
future surplus cash into a stock
buyback programme. Shares
responded with a 12 per cent rise in
after-hours trading. But this strategy
will only work if Netflix keeps raising
its subscription prices.
Sales of $6.6bn in the last quarter
brake on almost 20 years of double-
digit growth in revenues and profits.
Aggreko’s business model is a simple
one of buying kit — for example, diesel-
powered emergency generators — and
renting it out. That relies on high
utilisation rates to produce abundant
cash. Interim numbers reflect success
in some key metrics of managing cash,
with net debt/ebitda dropping below
one times. Utilisation rates looked less
healthy at 55 per cent to 65 per cent.
At first blush, the business outlook
provides little cause for cheer. Big
events that rely on temporary power
have been nixed by the pandemic.
Aggreko engines have helped to power
virtually every Olympics, bar Rio. It is
due to reprise that role in Tokyo’s
rescheduled games. As for the energy
sector, that is grappling with lower oil
150
100
50
0 the co-founder of Slack Technologies,
2019 2020 Disney +
Source: Netflix
4.0
3.5
3.0
2.5
2.0
1.5
2020 2021
Source: Refinitiv
jumped 21.5 per cent on the same
period a year ago. That was driven by
a similar rise in subscriber numbers.
Netflix has had to cast its net wide to
find new viewers. About four-fifths
came from outside the US and
Canada, often in markets with lower
subscription prices. In Turkey, for
example, the standard plan is
TL17.99 ($2.42) per month. The
boost to revenues is therefore a
combination of more subscribers and
higher prices in markets such as the
US, where the standard plan recently
rose $1 per month to $13.99.
The prospect of Netflix weaning
itself off debt is appealing. To achieve
it, the company will have to keep
testing the amounts that American
viewers are willing to pay.
prices even as it resets to greener
alternatives.
Aggreko sees this as an opportunity.
It can act as a trailblazer — using
friendlier fuels to halve its own diesel
consumption by 2030, for example —
and fill in for clients as they carry out
their own re-engineering. Big picture,
the world needs more electrification:
an estimated 37TWh worth by 2050,
compared with 22TWh in 2020.
Assuming Aggreko can grab some of
that, investors should see opportunity.
But expectations should be measured.
This is no rerun of the glory years: the
targeted CAGR of 5-10 per cent is more
muted. Priced at 30 times this year’s
forecast earnings and about 15 times
next year’s, shares are not cheap. Even
so, they are worth considering as
Aggreko revs back up.
US cash mountain:
the agony of choice
In the mid-2010s, Stewart Butterfield,
insisted on raising more venture capital
than his young software company
needed. His theory was that, since VC
cash was bountiful at advantageous
terms, it would be irresponsible not to
take it. That dynamic seemed to play
out in 2020 in the public company
capital markets, too. Rock-bottom
interest rates sent high-grade
companies scurrying into debt markets
to raise cash that was superfluous.
The 30 biggest investment-grade
offerings last year in the US raised
$289bn. Those cash machines Apple
and Google together borrowed $18bn.
But with the money now in the bank —
something like an extra $1.5tn across
the S&P 500 — companies face a harder
task: deciding what to do with it all.
According to the “pecking order”
theory, companies should prefer their
own profits for financing their
operations. Another school of thought
contends that companies can lower
their overall cost of capital and
increase their value by issuing debt.
Yields for investment-grade
companies fell below 2 per cent in
2020. Accessing bond markets allowed
companies to refinance existing debt
not only at lower interest rates but at
maturities pushed out several years.
The temptation of cheap cash is to
spend it riskily. Using the money for
dividends or buybacks increases net
leverage. But some private equity
investors are transacting dividend
recaps, where debt funds big paydays.
Companies can use new and old cash
balances to deleverage their balance
sheets, too. Drugstore chain CVS raised
billions in early 2020 as a safeguard. As
conditions eased, it offered to buy $6bn
in outstanding debt, with $4bn of that
coming from new borrowings and the
rest reducing the cash balance.
Acquisitions are another way to
reduce cash. In September, Salesforce,
thriving in the work-from-home world,
announced a $28bn agreed offer for a
cutting-edge disrupter. The target was
Mr Butterfield’s Slack Technologies.
Lex on the web
For notes on today’s stories
go to www.ft.com/lex

CROSSWORD
No 16,689 Set by CHALMIE
        ACROSS
1 Backing barely one of 16 popes will do
(5)
4 Convincing one angry-looking
  salesman to take Australia back (9)
9 Notices missing volume found inside
fish (3,6)
10 Freewheel when in bed (5)
 
11 They’re not the same returning to
higher education, Rhodes scholars

originally (6)
12 Non-conformist state I see in
Macedonia (8)
 
14 Hiding shrunken head slyly, Miss
Marple not a saint (5,7)
  18 Fleet’s on manoeuvres to break bricks,
not to care about looks (3,7,2)
 21 Photo of old lavatory? Yes! (8)
23 Rigorous, in a way, of the stomach to
  discharge gas (6)
25 Hands over an individualist (5)
   26 Rank Moore poorly in Bond film (9)
27 Playwright suppresses urges for flyers
 (4,5)
28 Band leaves westward (5)
 
DOWN
1 Press 1 to change answer (8)
2 Letter to linguistics scholar has fruit
  around border (8)
3 Old relative to be carried across river
(3,6)
4 Put the top on quiet greeting (4)
5 Oriental fruit for people sick with Sars
(4,6)
JOTTER PAD 6 Relative with large pimple going carb-
free (5)
7 Embroil newspaper in racket (4,2)
8 Alien absorbed by inclination to get
back (6)
13 Letter from abroad comes up in
system – Margo reacts (10)
15 American expert formerly not sure
Solution 16,688 about Windows? (9)
16 Lack fire, surprised in strobe light (1-7)
' 5 $ * * ( ' . , & . , 1 * 17 What seasick British patriot may be on
( % ( , $ + ' $ (4,4)
) 5 $ , / 6 & 5 ( $ 0 , 1 *
$ ' , 3 0 5 2 6
19 Hill that hurts man (6)
0 ( / 2 ' 5 $ 0 $ 2 & 7 ( 7 20 Mineral crystal found in Scots pine log
( 2 5 / ( (6)
$ 6 0 $ ' $ 6 $ + $ 7 7 ( 5 22 Thin person’s credit in decline (5)
8 ( 7 * 3 , : 6
6 8 5 ) $ & ( 7 ( 1 6 , 2 1
24 Lord Chancellor once longer (4)
8 / 5 6 (
5 $ ' , 2 : ( , * + % ( $ 0
3 , : + 2 2 $ %
, 1 7 + ( : , / ' 8 7 7 ( 5
1 7 % 7 , 6 ( <
* 2 2 ' % < ( & + ( ( 5 , 2