FRIDAY 15 OCTOBER 2021 WORLD BUSINESS NEWSPAPER EUROPE

Keeping trade fair Harbouring doubts Cloudbuster

Why we need a global carbon price LA’s round-the-clock working will Google’s plan to catch up with data
NGOZI OKONJO-IWEALA, PAGE 19 not fix supply-chain crisis — PAGE 17 storage rivals — RICHARD WATERS, PAGE 6

Beirut attack Briefing

Snipers spark i Citigroup and Morgan Stanley celebrate

sect tensions Both Wall Street banks have benefited from a surge
in dealmaking that helped offset pressure from low
interest rates and loan demand. Bank of America
also reported a rise in fees.— PAGE 6; LEX, PAGE 20
Fighters from Hizbollah and Amal take
aim during clashes in Beirut yesterday, i Rising TB deaths prompt global alert
after six people were killed when snip- The World Health Organization has warned that the
ers opened fire on a protest at the han- pandemic has erased years of progress in tackling
dling of an investigation into the port tuberculosis, with the first rise in deaths in 10 years.
blast last year that left 200 people dead. TB can be cured in 85 per cent of cases.— PAGE 3
The Shia allies blamed the killings on
the Lebanese Forces, a far-right Chris- i Biden nominee hits back at critics
tian party. LF denied any involvement Kazhak-born Saule Omarova, who has been picked
but accused Hizbollah of “incitement” by the US president to lead a major US bank
against the judge leading the port regulator, has accused critics of singling her out for
inquiry. being a woman and a minority candidate.— PAGE 2
The shootings sparked the worst
violence in years, with fierce exchanges i Soccer star’s hint threatens bid frenzy
across an old civil war frontline in a Manchester City’s Raheem
southern area of Beirut that is home to Sterling has told the FT of his
all three of Lebanon’s main sects — desire to leave the English
Sunni and Shia Muslims and Christians. champions, setting up what
Six shot dead page 2 could be the sport’s next
Anwar Amro/AFP via Getty Images
blockbuster transfer.— PAGE 3

i Tech investors reap $582.5bn bonanza

Top EU states push to put bloc on

A wave of US public listings and start-up sales have
brought a windfall for investors and employees in
the past year. IPOs represent a growing chunk of
proceeds from venture capital investments.— PAGE 6

standby for trade war with Britain

i Bottlenecks dim German growth outlook
Economists have cut forecasts for Europe’s biggest
economy this year, blaming supply chain problems
and the impact of the pandemic on services. The
outlook for next year appears better.— PAGE 2

i Biggest chipmaker eyes 50% margin

3 Response to UK threat over Brexit deal 3 Germany, France and Netherlands most vocal
ANDY BOUNDS AND SAM FLEMING
BRUSSELS
GEORGE PARKER — LONDON
GUY CHAZAN — BERLIN
Leading EU member states are pressing
Brussels to draw up tough retaliatory
measures should the UK carry out its
threat to suspend the trading arrange-
ments for Northern Ireland enshrined
in the Brexit deal.
Five member states met European
Commission vice-president Maros
Sefcovic, the EU Brexit negotiator, this
week to demand he come up with con-
tingency plans for a possible trade war,
diplomats told the Financial Times.
France, Germany and the Netherlands
were the most vocal, supported by Italy
and Spain, the diplomats added.
Among the options being discussed
are curbing UK access to the bloc’s
energy supplies, imposing tariffs on
British exports, and, in extreme circum-
stances, terminating the trade agree-
ment between the two sides.
Lord David Frost, UK Brexit minister,
warned on Tuesday that Britain could
seek to suspend much of the Northern
Ireland protocol. This sets out the
region’s post-Brexit trading arrange-
ments, mandating customs and regula-
tory checks on goods going from Great
Britain to Northern Ireland, a bitter
source of dispute between the two sides.
By invoking Article 16 of the protocol,
the UK could disregard many of its
requirements but the EU would be
expected to retaliate.
Sefcovic on Wednesday proposed
changes to the protocol, including
Taiwan Semiconductor Manufacturing Company
has said the global chip shortage could push gross
profit margins beyond 50 per cent as customers are
scrapping many of the checks on foods, Sefcovic told the FT in an interview willing to pay higher prices.— PAGE 10; LEX, PAGE 20
in an effort to reach a compromise. But that he preferred a “constructive path”
EU member states fear that the UK, with the UK. “This week is not about
after demanding a rewrite of the proto- Article 16 to be honest, it is about the Datawatch
col, will reject the proposals and instead proposals. And I trust Lord Frost and
trigger Article 16. the UK government will see the huge
“There’s a significant chance that Maros Sefcovic: merit in what we are putting on the Diverse living An increasing
Frost will say ‘We want the moon’,” said ‘I trust Lord table,” he said. % who say having people of many share of people
one diplomat. “Frost knows he’s playing Frost and the The commissioner added that he was different backgrounds makes their are seeing
with fire. But when you play with fire, UK government open to different solutions when he country a better place diversity as
2021 2017 having a positive
you get burnt. The EU has a broad pal- will see the huge meets Frost, but said: “This process influence. Young
ette of options for hitting back at the UK: merit in what we cannot go on forever.” Australia
UK people, in
for example, energy supplies.” are putting on The EU, he said, saw the withdrawal particular, are
Germany
Frost travels to Brussels today for the table’ agreement and the trade deal as a “base- Spain driving this
talks with Sefcovic, with the sides also line” from which to build a wider rela- South Korea change but data
far apart on the issue of whether the tionship. “The question is why enter Greece show they also
European Court of Justice should play a into any new deals with the UK, if two Japan tend to see more
role in overseeing the Northern Ireland such important agreements . . . are not 0 20 40 60 80 conflicts in their
protocol. Neither side has so far shown respected? . . . Once you sign a deal you Source: Pew Research society
any appetite for compromise. respect it.”

LinkedIn shuts China networking site

as tough compliance demands take toll
ELEANOR OLCOTT — LONDON service called “InJobs”, without any of US legislators have raised concerns
DEMETRI SEVASTOPULO — WASHINGTON
the social media functions of the full about companies that, for example,
LinkedIn is closing its networking site LinkedIn site. On this stripped-back have removed from their websites criti-
in China, marking the departure of the version, Chinese users will not be able to cal remarks about forced labour in Xin-
last leading US social media platform share posts or news articles. jiang or appeared to self censor to avoid
Arrest highlights two sides from the country. LinkedIn was called in by China’s backlash from Beijing.
of cyber security in Russia internet regulator in March and ordered The White House welcomed the move
The Microsoft-owned company to clean up its content. In the same and accused China of forcing companies
Analysis i PAGE 4 announced yesterday that it would shut month, the company said it was “tem- to be “complicit in its repression and
the localised version of its networking porarily pausing new member sign-ups authoritarian practices”.
website after “facing a significantly for LinkedIn China” as it tried to “We welcome this news by LinkedIn
Austria €3.90 Malta €3.70
Bahrain Din1.8 Morocco Dh50 more challenging operating environ- become compliant “with local law”. to not play into [Beijing’s] hands. The
Belgium
Bulgaria
€3.90
Lev7.50
Netherlands
Norway
€3.90
NKr40 ment and greater compliance require- Several human-rights activists and private sector and the international
Croatia Kn29 Oman OR1.60 ments in China”. writers who focused on China have had community should oppose [China’s]
Cyprus €3.70 Pakistan Rupee350
Czech Rep Kc105 Poland Zl 20 LinkedIn has 53m users in China, their profiles blocked in the country in weaponising of its markets to stifle free
Denmark
Egypt
DKr38
E£59
Portugal
Qatar
€3.70
QR15
about 7 per cent of its total user base. recent months for posting “prohibited expression and support human rights,”
Finland €4.70 Romania Ron17 Microsoft does not disclose how much content”, according to the company. a senior US official said.
France €3.90 Russia €5.00
Germany €3.90 Serbia NewD420 China contributes to LinkedIn’s reve- The move comes as US companies Relations between Washington and
Gibraltar
Greece
£2.90
€3.70
Slovak Rep
Slovenia
€3.70
€3.70
nues, which Microsoft recently said had come under rising domestic political Beijing remain tense, over US concerns
Hungary Ft1200 Spain €3.70 passed an annual level of $10bn. pressure over any operations in China about repression and human rights, and
India Rup220 Sweden SKr39
Italy €3.70 Switzerland SFr6.20 The company said it would replace its that appear to help Beijing with surveil- Chinese perceptions of interference
Lithuania
Luxembourg
€4.30
€3.90
Tunisia
Turkey
Din7.50
TL23
Chinese website with a job-board lance or political repression. over Taiwan, Xinjiang and Hong Kong.
North Macedonia Den220 UAE Dh20.00

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2 ★
Middle East
Six shot dead at Hizbollah-led Beirut rally
Far-right Christian group
blamed for sniper attack
that left dozens injured
CHLOE CORNISH — BEIRUT
Six people are dead and dozens injured
after snipers opened fire on a rally by
Lebanon’s powerful Hizbollah group
and others in central Beirut, unleashing
the worst violence the capital has seen
for years as tensions rise over an investi-
gation into the 2020 port blast.
Unknown gunmen attacked support-
ers of Hizbollah, the Iran-backed para-
military and political party, and its fel-
low Shia ally the Amal Movement.
Soaring bills Gas crisis puts
pressure on pricing regime
MEHREEN KHAN — BRUSSELS
The soaring cost of gas has pushed up
energy bills across Europe and put the
EU’s electricity market in the spotlight.
Spain and France are leading calls in
the bloc for changes to the way prices
are set, and in Russia, President
Vladimir Putin has said the EU’s deci-
sion to favour market-based prices over
long-term contracts is partly to blame.
The European Commission has
resisted pressure for major regulatory
changes to the 30-year energy market
and has published options, including
direct income support and tax breaks.
Kadri Simson, energy commissioner,
said the system paved the way for mar-
ket liberalisation and spurred invest-
ment in green technologies.
Why is the price of electricity rising?
The average European household elec-
tricity bill is broken down into the fol-
lowing costs: taxes and value added tax
(about 35 per cent), network operator
(30 per cent) and unit of energy (about
35 per cent), according to figures from
the EU’s Agency for the Cooperation of
Energy Regulators.
At the heart of many complaints is the
pricing system, which operates on a
common “pay as you clear” model,
where wholesale electricity costs reflect
the price of the last unit of energy
bought at auction in member states.
Gas is generally the fuel that is needed
to make sure enough energy is supplied
to meet demand.
So even in countries such as France,
where cheaper nuclear power provides
about 70 per cent of electricity, gas is
still driving the wholesale electric price.
And as the gas price has soared, so has
the price of electricity.
Who benefits?
The EU energy market has helped bring
down prices since the late 1990s by
accelerating a shift away from long-
term contracts for fossil fuels such as oil
to less carbon-intensive natural gas and
renewables bought on spot markets.
Because prices are based on shifting
supply and demand dynamics, Europe
has even experienced negative prices —
most notably during the start of the pan-
demic in 2020, when supply massively
outweighed demand. Between 2019 and
2020, Europe’s households experienced
a 20 per cent fall in the cost of gas,
according to figures from Eurostat.
Jan Cornillie, research associate at the
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Trump vs the Valley
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
HMRC warns
customs risks
being swamped
by Brexit surge
3 Confidence in IT plans ‘has collapsed’
3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expectedonce Britain
leaves the EU, customs authorities have
admitted toMPs.
FINANCIAL TIMES
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Spain: Bermont Impresion, Avenida de Alemania 12, CTC,
Hizbollah and Amal had taken to the
streets, with some supporters openly
brandishing weapons in a provocative
show of force, to protest at what they see
as the politicisation of a judicial investi-
gation into the Beirut port blast that
devastated the capital and left more
than 200 people dead.
Automatic fire and rocket-propelled
grenades were heard in nearby neigh-
bourhoods and shooting continued for
more than three hours, despite the
heavy deployment of soldiers.
In a joint statement, Hizbollah, the
biggest armed force after the army, and
Amal said that snipers had shot at the
heads of the demonstrators, blaming
“armed and organised groups aiming to
European University Institute, said the
regime had “delivered very low prices
for years” but recent factors largely out-
side the control of policymakers meant
“this is among the first times it is not
working in our favour”.
“The lesson is not to do away with the
design altogether but to add insurance
mechanisms in times of high prices,”
said Cornillie.
Brussels is protective of a model it
says is crucial to its climate goals and a
speedy transition to renewable energy.
Marginal pricing means all suppliers,
including cheaper wind or solar installa-
tions, get the price paid for the most
expensive offer accepted, providing a
boon for capital-intensive technologies
such as renewable energy. “The market
is not dominated by the big players and
is open for smaller renewable installa-
tions,” said Simson.
Is there an alternative?
Finance ministers from France, Spain,
Romania, Greece and the Czech Repub-
lic have called for changes to “better
establish a link between the price paid
by consumers and the average produc-
tion cost of electricity in national
production mixes”.
Brussels has promised to assess how
“delinking” could be achieved but
changing the marginal pricing rules
would also require EU legislation that
would take time. Many states, including
Germany, the Netherlands and the Nor-
dics are likely to resist major legal
changes in the face of a price surge
experts expect to fade by early 2022.
“To the extent that [the price surge] is
a temporary phenomenon, the response
should be just as transitory,” said Chris-
tian Zinglersen, director of Acer.
Better energy reserves
Brussels is looking for ways to procure
and store more natural gas so it can
counter price swings. “Volatility is likely
here to stay and we need to work on
accepting this,” said Zinglersen.
About 12 member states have strate-
gic gas reserves but Brussels applies
strict rules on emergency oil stocks:
each state must keep crude oil worth 61
days of consumption and continually
report stock levels to Brussels. However,
moves towards joint gas purchasing and
storage are likely to face technical diffi-
culties and high costs. Natural gas is
stored in underground reservoirs and
the market is dominated by operators
including Russia’s Gazprom.
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letter — ROBERT SHRIMSLEY, PAGE 12
Lloyd’s of Brussels Insurance market
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Briefing
THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border
dealmaking, as US companies ride a Trump-fuelled HOW DRIVERLESS
equity market rally to hunt for bargains across the
OF THE TECHNOLOGY IS
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
AMERICAN WAY OF LIFE
non-urgent operations and for A&E treatment while
some surgical procedures will be scrapped.— PAGE 4
i Emerging nations in record debt sales
FT WEEKEND MAGAZINE
Developing countries have sold record levels of
government debt in the first quarter of this year,
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15
Credit Suisse
Art of persuasion Mystery deepens
i London tower plans break records
A survey has revealed that a
record 455 tall buildings are
over disputed painting of Jane Austen
planned or under construction
engulfed in
adjust its negotiation position with the in London. Work began on
EU, a Whitehall official said. “If running almost one tower a week
our own customs system is proving during 2016.— PAGE 4
much harder than we anticipated, that
ought to have an impact on how we i Tillerson fails to ease Turkey tensions
fresh tax probe
press for certain options in Brussels.” The US secretary of state has failed to reconcile
In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
of the Commons treasury select com- Tayyip Erdogan on issues including Syria and the
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FINANCIAL TIMES
INTERNATIONAL
drag the country into sedition”. The two
groups later accused the Lebanese
Forces, a far-right Christian party, of
being behind the shootings, according to
pro-Hizbollah television channels. The
LF denied involvement, but accused
Hizbollah of “incitement” against the
judge leading the port investigation.
The port explosion probe has become
a political flashpoint, with Hizbollah
leader Hassan Nasrallah this week call-
ing for the presiding judge’s removal,
accusing him of political bias.
Tarek Bitar, the second judge to lead
the investigation, has attempted to
charge and summon several ex-
ministers and security officials from
across the political spectrum, in an
Norway
Police say
killings
appear to be
‘act of terror’
Police in Kongsberg after the
attack. Below, an arrow shot
by the perpetrator in a wall
Hakon Mosvold Larsen/NTB/AFP/Getty
Financial services
Biden choice for bank regulator claims she is ‘easy to demonise’
KIRAN STACEY AND STEFANIA PALMA
WASHINGTON
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
Joe Biden’s pick to head a US bank regu-
lator has hit back at her critics in Con-
Censors and sensitivity
gress and Wall Street, accusing some of
Warning: this article may be
FEBRUARY 4 2017
upsetting — LIFE & ARTS
How To Spend It
them of singling her out for being a
Chic new lodgings
woman and a minority candidate.
The US president announced last month
he intends to appoint Saule Omarova as
comptroller of the currency, which
supervises national banks, including
Bank of America and Wells Fargo.
Since then, however, she has faced a
backlash from Republicans and the
banking industry. Critics have focused
on her Soviet upbringing and her more
recent career as an academic, with pro-
posals including a state-run bank
account system.
“There is definitely a different stand-
ard applied to someone like me,” Omar-
ova, who was born in what is now Kaza-
khstan, said in an interview with the
Financial Times.
“I am an easy target: an immigrant, a
woman, a minority,” she added. “I don’t
look like your typical comptroller of the
currency, I have a different history. I am
easy to demonise and vilify.”
effort to hold individuals to account for
the blast of badly stored chemicals.
A trail of leaked documents has
revealed that many officials knew about
the danger posed by the stash of ammo-
nium nitrate but failed to take action.
Families of victims have repeatedly
demonstrated in support of Bitar, and
EU embassy officials in Beirut this week
said that “the investigation should be
allowed to proceed without any inter-
ference in legal proceedings”. Earlier
yesterday, a court dismissed an appeal
to remove Bitar, one of a series of legal
challenges mounted by accused politi-
cians, including some Hizbollah allies.
The clashes took place across an old
civil war frontline in the southern part
A Danish convert to Islam has been
charged with killing five people and
injuring two in a bow-and-arrow attack
in Norway that “appears . . . to be an
act of terrorism”, the country’s
intelligence service said yesterday.
Police in Kongsberg — a town 70km
west of the capital Oslo — said Espen
Andersen Braathen, a 37-year-old
Danish citizen, was arrested on
Wednesday evening and charged
overnight.
The assault “appears at the moment
to be an act of terrorism”, police said,
adding that there was no indication
anybody else was involved.
The accused, who lives in Norway,
was reported to police several times
last year over concerns he had been
radicalised. Officers had followed up
each time and no new complaint had
been registered this year, Ole Saeverud,
the local police chief, said.
Norway has suffered several acts of
terrorism by rightwing extremists in
recent years, including a 2011 attack on
the then ruling Labour party’s youth
camp and government buildings in
Oslo that killed 77 people. But unlike
Scandinavian neighbours Sweden and
Denmark, the country of 5.4m has
Asked if she thought some of the criti-
cism of her was racist, Omarova replied:
“I think that is true.”
The Office of the Comptroller of the
Currency oversees banks with $14.9tn
in assets, issuing rules on how lenders
can do business and granting licences
for new banks to operate. An independ-
ent branch of the Treasury department,
the OCC is also potentially important for
regulating cryptocurrencies.
The opposition to Omarova from
Republicans and bank lobbyists has
prompted concern at the Biden admin-
istration that she might fail to secure
enough support from moderate Demo-
crats to win Senate confirmation.
Pat Toomey, the most senior Republi-
can on the Senate banking committee,
told senators last week: “I don’t think
I’ve ever seen a more radical choice for
any regulatory spot in our federal
government.”
Rob Nichols, chief executive of the
American Bankers Association, said:
“We have serious concerns about her
ideas for fundamentally restructuring
the nation’s banking system, which
remains the most diverse and competi-
tive in the world.”
of Beirut, an area that is home to all
three of the country’s main sects —
Sunni and Shia Muslims, and Christians.
Lebanon’s 15-year civil war ended in
1990, but old sectarian and political
rivalries remain.
The country is suffering its most
severe social turbulence since the war
ended. It is two years into an economic
crisis, rooted in decades of corruption
and state mismanagement, which has
pushed more than half the nearly 7m
population into poverty. The collapse
was exacerbated by it not having a fully
functioning government for more than
a year, as political forces fought for con-
trol of ministries, which are divided
along sectarian lines.
never experienced a deadly Islamist
terror attack.
Police said four women and one man
— all aged between 50 and 70 — had
died and two were seriously injured,
including an off-duty policeman.
Police had first seen the accused
within minutes of receiving the initial
call about the attack but officers had
lost contact with him. Some of the
killings, and probably all of them,
occurred in the 30 minutes before
police found him again.
During the attack, the accused
moved around several locations in the
university town of 28,000, which is also
home to Norway’s biggest defence
contractor.
The man had co-operated with police
in an interview overnight.
News of the attack came as Norway
changed government, with centre-left
Labour leader Jonas Gahr Store taking
over as prime minister yesterday. “It is
horrible what has been revealed. It is
shocking to think about what people
have experienced,” Store said as he
presented his new government, which
includes two survivors of the 2011
attacks.
Richard Milne, Oslo
Omarova’s critics have focused on two
main parts of her background: her
upbringing in the Soviet Union, where
she wrote a paper on Karl Marx while
studying at Moscow State University;
and a paper she authored last year in
her role as a law professor at Cornell
University.
Her more recent paper argued for a
state-run bank account system whereby
every American has a deposit account
with the Federal Reserve, rather than
with a private lender.
Private banks would still be allowed
to lend, although she also argued for the
Saule Omarova: denied suggestions
she has communist sympathies
Friday 15 October 2021
Outlook
Supply chain
woes lead to
cut in growth
forecasts for
Germany
MARTIN ARNOLD — FRANKFURT
GUY CHAZAN — BERLIN
Germany’s top economic research
institutes have cut their growth fore-
casts for Europe’s largest economy this
year to 2.4 per cent from 3.7 per cent,
blaming supply bottlenecks in manu-
facturing and the lingering impact of
the pandemic on services.
The lower forecasts — published twice a
year on behalf of the government —
reflect a worsening short-term outlook
for the German economy, as supply
chain problems have persisted longer
than many economists expected.
Oliver Holtemöller, head of macr-
oeconomics at the Halle Institute for
Economic Research, said the economy
had rebounded strongly earlier this year
but not as much as expected “and that
was because of supply bottlenecks in the
manufacturing sector”. He told a Berlin
press conference that such bottlenecks
would slow the recovery over the winter
months.
German industrial production fell 4.1
per cent in August, taking it 9 per cent
below pre-pandemic levels. Several of
Germany’s big carmakers have had to
freeze production due to shortages of
materials, particularly semiconductors.
However, the five research institutes
raised their forecasts for next year to 4.8
per cent from 3.9 per cent, after which
they predicted growth would slow to 1.9
per cent in 2023.
The outlook is in line with most econ-
omists’ models but more pessimistic
than one published this week by the
IMF, which lowered its prediction for
German growth this year to 3.1 per cent
from 3.6 per cent and raised its forecast
for next year to 4.6 per cent.
“We assume that the supply bottle-
necks will only be resolved gradually, in
the course of next year,” said
Holtemöller. “The main driver of the
recovery next year will be private
consumption.”
He said confidence in next year’s
rebound was bolstered by the strength
of Germany’s labour market, after the
country added 240,000 jobs in the three
months to September.
The five institutes predicted Ger-
many would add a further 450,000 jobs
next year and a similar amount in 2023,
pushing its unemployment rate close to
pre-pandemic levels. But they forecast
that growth in unit labour costs would
drop from 3.4 per cent last year to 0.8
per cent this year and zero in 2023, dis-
missing fears that rising inflation could
trigger a surge in wages.
Holtemöller said German inflation
would return to around 2 per cent from
2023. That is despite higher inflation
forecasts both for this year, which were
raised to 3 per cent from 2.4 per cent,
and for next year, to 2.5 per cent from 1.7
per cent, reflecting expectations that
higher energy prices and production
costs will pressure prices.
Germany’s political parties are still
negotiating to form a ruling coalition
after last month’s election. But the insti-
tutes predicted the country would soon
return to fiscal discipline, with its
budget deficit falling from 4.9 per cent
of gross domestic product this year to
2.1 per cent next year and 0.9 per cent in
2023.
See FT Big Read
creation of a separate Fed-run vehicle
which would help finance public infra-
structure projects.
Toomey last week asked Omarova to
submit a copy of her undergraduate
paper on Marx, adding: “How does it
even happen that it occurs to someone
to think of these things? Maybe a con-
tributing factor could be if a person grew
up in the former Soviet Union and went
to Moscow State University and
attended on a VI Lenin academic
scholarship.”
Omarova would not disclose whether
she intended to submit the essay,
though she had not done so by the
Wednesday deadline set by Toomey.
She also denied suggestions she has
communist sympathies, saying: “My
grandmother was orphaned because
Stalin sent her entire family to Siberia
and they died there.”
Her family was destroyed “because
they were educated Kazakhs who didn’t
join the party”.
Omarova added: “What Wall Street
banks worry about is that I am going to
be an independent, strong-minded
regulator who is not one of them, who is
not beholden to them.”
Friday 15 October 2021 ★ FINANCIAL TIMES 3

INTERNATIONAL
GLOBAL INSIGHT
Health

Pandemic curbs tuberculosis progress

DEFENCE

Resources once deployed
against disease have been
reallocated to Covid-19
DONATO PAOLO MANCINI — LONDON
The pandemic has erased years of
progress in tackling tuberculosis, lead-
ing to the first increase in deaths caused
by the disease in more than a decade
Tuberculosis (TB) is caused by bacte-
ria that most frequently affect the lungs.
It can spread by coughing.
The disease is both preventable and
curable — about 85 per cent of those
developing it can be successfully treated
with a six-month drug regimen, which
also curtails the potential of onward
transmission.
Yet, in 2020, the WHO said, more peo-
ple died from TB than in the previous
Laura
Pitel
in 2020. The increase in the number of In 2020 been officially reported to health
deaths caused by the curable disease authorities. This is an increase from
more
occurred mainly in the 30 nations with
the highest burden of TB, and the WHO
estimates the number of deaths could
people died
2.9m in 2019. Approximately 2.8m peo-
ple accessed preventive treatment in
2020, a reduction of about a fifth since
Turkey’s search for
be “much higher” in 2021 and 2022.
“This report confirms our fears that
from TB,
with ‘far
2019. Only one in three were treated for
drug-resistant disease.
fighter jets creates
the disruption of essential health serv-
ices due to the pandemic could start to
unravel years of progress against tuber-
fewer’
Global funding to tackle the disease
has fallen and is less than half of the glo- dilemma for Biden
culosis,” said Tedros.
people bal target of $13bn a year by 2022, said
the WHO.

despite the number of registered cases
decreasing, the World Health Organiza-
tion has warned in a report.
Tedros Adhanom Ghebreyesus, the
WHO’s director-general, said the find-
ings released by the global health body
yesterday were “alarming”. He said they
should “serve as a global wake-up call to
the urgent need for investments and
innovation . . . in diagnosis, treatment
and care” for the millions of people
affected by the disease.
year, with “far fewer” people diagnosed TB is not the only disease whose
and treated or provided with preventive management has been affected by the
treatment. In many countries, pandemic.
resources once deployed against TB Cancer and other conditions have
have been reallocated to Covid. experienced under-diagnosis, health
Patients have also struggled to seek officials and pharma executives have
care during lockdowns, the WHO said. It warned for months, with the full effects
estimated about 1.5m people died from of the phenomenon unlikely to be clear
TB in 2020, up from an estimated 1.4m for years to come.
the year prior. According to the WHO, about 4.1m
Meanwhile, the number of new TB people globally have TB but have not
diagnoses fell from 7.1m in 2019 to 5.8m been diagnosed, or their cases have not
Labour market. Industrial action
T
diagnosed, It warned that global targets to tackle
according the disease, including an aim to reduce
deaths by 90 per cent by 2030 com-
to the WHO pared with 2015 baseline figures, were
“off track” and “increasingly out of
reach”.
Progress in TB drugs, vaccines and
tests has been constrained by the rela-
tively low underlying level of research
and development investment, which at
about $900m in 2019 falls “far short” of
the global target of $2bn a year.
urkey has a fighter jet problem. The decades-
old Nato member was barred by the US from
taking delivery of its order of more than 100
next-generation F35s that were meant to form
the backbone of its air force, a punishment for
Recep Tayyip Erdogan’s decision to buy a Russian-made
air defence system from President Vladimir Putin.
Ankara one day hopes to fill the gap in its air force with
its own, Turkish-made fighter. But with that aircraft far
from ready, for now it is reliant on an ageing fleet of F16s.
That explains the recent request submitted by Ankara
to Washington for 40 newer F16s, made by Lockheed Mar-
tin, as well as kits to upgrade close to 80 of its existing jets.
Turkey, which has been subject to US sanctions on its
defence industry since December 2020 because of the Rus-
sian S-400 defence system contract, argues the deal would
be win-win. It would help Turkey update its air force at a

Emboldened US workers find their voice
Employees pressed to do more
in the Covid crisis have gained
leverage to boost conditions
TAYLOR NICOLE ROGERS — NEW YORK
Some of the US’s favourite snacks have
been caught up in a drive by factory
workers to secure better working condi-
tions after being pushed to the brink
during the pandemic.
For the past week, 1,400 workers at
four Kellogg plants that make cereals
such as Frosted Flakes and Froot Loops
have been on strike in an attempt to
force the company to end forced over-
time work and stop it from redrawing
the workers’ benefits scheme.
One employee on strike, Kevin Brad-
shaw, has worked in the packaging
department at a Kellogg cereal plant in
Memphis, Tennessee, for 20 years.
Because of the pandemic and labour
shortages that followed, he said he often
worked up to 16 hours a day, seven days
a week. For the past week, Bradshaw has
spent his days co-ordinating a picket
line outside each of the plant’s gates.
“It becomes frustrating knowing that
the time and dedication and loyalty that
we put into this company, the things we
miss that most people don’t miss, like
birthdays, reunions, and graduations
and funerals, and just family time,” said
Bradshaw, who is also vice-president of
the local Bakery, Confectionery,
Tobacco Workers and Grain Millers
International Union chapter. “We spend
most of our time here.”
Bradshaw and his colleagues are the
latest in a wave of BCTGM-led strikes at
food plants across the country by work-
ers who say changes implemented dur-
ing the Covid-19 crisis have made their
jobs untenable. They are demanding
improvements such as shorter working
hours and an end to forced overtime.
Kellogg said that the trade union had
misrepresented the negotiations and
that it was continuing to operate its
plants with “other resources”.
Kellogg shares have fallen 2.6 per cent
since the strike began on October 5.
In August, it said had beaten analysts’
expectations for earnings during the
second quarter because of rising
Picket line: demand for packaged foods during the
strikers at a pandemic, and previously raised its
Kellogg plant profit projections for the year.
in Battle Creek, BCTGM also represents employees at
Michigan, a manufacturing plant for PepsiCo sub-
this month sidiary Frito-Lay in Topeka, Kansas,
Alyssa Keown/Battle Creek
Enquirer/Reuters
who went on strike for 19 days in July
over demands for mandatory overtime.
BCTGM-represented workers also
stopped work at Oreo-maker Nabisco
plants in five states for several weeks
before agreeing a new contract that
guaranteed workers a day off per week.
As millions of American workers have
delayed returning to work amid the
Delta variant surge, those in work have
found leverage to negotiate with their
employers over pay and conditions.
The frustration is often highest
among those who were considered
essential workers early in the pandemic,
such as food factory workers, but have
since seen their working conditions
stagnate or deteriorate as businesses
reopened, said Bryant Simon, a labour
historian at Temple university who
studies food manufacturing.
“What’s going on with Kellogg and
Nabisco is also part of what’s going on
with the labour shortage,” Simon said.
“This is about people reassessing their
lives and their participation in the
labour force.
“It’s not about people getting hand-
outs, it is about people demanding bet-
ter work with their feet by stepping
away for a while,” he added. “There is a
kind of turmoil right now about what a
job should be, what it should entail, and
what is the basic social construct.”
Food plant workers are not alone in
their growing readiness to strike over
quality-of-life issues, including working
hours and job safety. More than 10,000
workers at Deere’s US factories went on
strike yesterday, marking the first
major walkout at the tractor maker in
35 years after employees rejected a pro-
posed labour agreement. Nearly 60,000
workers on Hollywood production
crews are on the verge of striking over
gruelling hours and a lack of time off.
Nurses are on strike in Massachusetts
and New York over low staffing levels.
Since membership peaked in 1979, the
American labour movement has been
languishing because of waning public
support.
But the pandemic has reignited
debates about issues from workplace
conditions to discrimination.
Striking Kellogg workers want guar-
antees they will continue to receive the
cost-of-living wage rises that increase
their pay with inflation, and high-qual-
ity health insurance benefits.
Their chances of winning at least
some of what they demand are good,
according to Simon. “These are workers
that have had a lot to complain about for
a long time and just needed an opening,”
he added.
time when Greece, its neighbour and longstanding rival, is
buying French Rafale jets and American F35s. While the
S-400 is seen by the US as a threat to the security of its fifth
generation F35, the same problem may not arise with the
older F16.
Not only would a deal be lucrative for the US defence
industry but it would also help mend strained relations
with the US and western allies, who have no interest in
Erdogan getting closer to Putin.
“There’s an opportunity here,” said Alper Coskun, a
former Turkish diplomat now at the Carnegie Endowment
for International Peace. “This would guarantee that the
Turkish defence industry, or at least a significant element
of it, would continue to be
embedded in the transat-
lantic relationship. It’s a
The US Congress is
way out of the dilemma hostile to Erdogan
that we’re facing that
would have a ripple effect
for reasons
in a lot of other areas.” such as human
But it is unclear if the
US will oblige. Congress,
rights abuses
which can block the sale,
is hostile to Erdogan for reasons such as human rights
abuses and military operations against US-backed Kurdish
forces in Syria. Even if Joe Biden’s administration were to
advocate on Erdogan’s behalf — as Ankara believes — the
Turkish leader’s determination to buy a second S-400 air
defence system will not help. “In the future, nobody will be
able to interfere in terms of what kind of defence systems
we acquire, from which country, at what level,” he told CBS
News days before submitting the F16s request.
The S-400 issue was the “main impediment” to getting
the fighter jet deal through Congress, said Aaron Stein at
the Foreign Policy Research Institute. “Not from a threat
basis, but from a pissed-off basis.” An angry Congress will
probably want concessions from Erdogan on the Russian
hardware that is already in Turkey and a commitment not
to buy the second system. But the Turkish president, who
accuses the US of failing to offer him an American alterna-
tive, is unlikely to cede ground.
The situation creates a bind for the Biden administra-
tion. Pressing for a green light to the F16s sale without any
conditions would be seen by Turkey’s critics as unwar-
ranted appeasement. But if the sale is rejected, Ankara will
have found a ready-made excuse for turning to Russia.
Deeper Turkish defence co-operation with Moscow
would not serve Ankara’s interests. Not only would it be
likely to trigger further US sanctions, it would also be dam-
aging for the expanding domestic defence industry
Erdogan himself has championed.
Yet the worry is that he may feel he has no other option.
During a 2019 trip to a Russian air show where he ate ice
cream with Putin and eyed up Russian defence kit,
Erdogan asked his Russian counterpart, half jokingly,
about buying one of his Su-57 fighters. Some western offi-
cials are now anxious that the quip could become a reality.
“If the Americans don’t approve this deal then what will
Turkey do? They will buy Russian or Chinese,” said a Euro-
pean diplomat who is eager to see the F16s sale approved.
“They have to fill this gap.”
laura.pitel@ft.com

Inflation Sport

China factory prices surge amid coal shortage Manchester City star tells FT he wants to leave
THOMAS HALE — HONG KONG
Factory gate prices in China rose at
their fastest pace in more than a quar-
ter of a century as record coal prices
intensified inflationary pressures on
businesses and manufacturers.
The producer price index rose 10.7 per
cent in September compared with a year
earlier, official data showed yesterday,
the highest rate of increase since 1995.
In August, the PPI grew 9.5 per cent.
Soaring global commodity prices have
pushed factory gate prices in China
sharply higher this year, with a shortage
of coal compounding an energy crisis
and leading to calls from the govern-
ment for higher production.
The country’s producer prices
increases, which in September were also
boosted by base effects in 2020, have
been closely watched at a time when
higher inflation in the US has sparked
concern among policymakers.
But the figures have not yet fed
through into consumer prices in China,
which in September rose just 0.7 per
cent, a lower pace than in August.
Apart from a potential spillover to
Chinese consumers, producer prices
have also raised worries over higher
costs for the country’s manufacturing
sector, which helped drive its rapid
recovery from the coronavirus pan-
demic but is now under pressure from
power shortages.
“We think the risk of stagflation is ris-
ing in China as well as the rest of the
world,” said Zhiwei Zhang, chief econo-
Coal-fired plant:
China’s imports of
coal rose 76% year
on year last month
as it tried to end
power rationing
mist at Pinpoint Asset Management.
“The ambitious goal of carbon neutral-
ity puts persistent pressure on com-
modity prices, which will be passed to
downstream firms.”
Trade data released on Wednesday
revealed that China’s imports of coal
surged 76 per cent year on year in Sep-
tember as it tried to ease shortages that
have led to power rationing at factories
and businesses.
The data also showed resilient trade
despite the energy issues, with exports
rising 28 per cent in dollar terms year on
year in the same month.
The government has grappled with
rising commodity prices after announc-
ing a goal last year to reach carbon neu-
trality by 2060.
A state meeting in May chaired by Li
Keqiang, China’s premier, announced
that important coal companies would
be “encouraged to raise production”,
while last week, authorities in Inner
Mongolia ordered increased output.
Sheana Yue, assistant economist at
Capital Economics, said there were few
signs that power shortages were pushing
up prices of finished consumer goods,
adding that factory gate inflation in
China “won’t stay this high for long”.
“Sooner or later, coal and metal prices
are likely to drop back as property con-
struction slows,” she said.
In addition to energy shortages,
China’s economy is under pressure from
a slowdown across its vast real estate
sector and financial struggles at some of
its biggest property developers includ-
ing Evergrande, which this week missed
interest payments on dollar-denomi-
nated bonds.
See Markets Insight
MURAD AHMED — NEW YORK
Manchester City footballer Raheem
Sterling has told the Financial Times of
his desire to leave the English Premier
League champions, setting up what
could be the sport’s next blockbuster
transfer.
In an interview at the FT’s Business of
Sport US Summit in New York yester-
day, the 26-year-old striker was asked
about a lack of playing time in the side
led by Spanish coach Pep Guardiola.
“If there was an opportunity to go
somewhere else, I’d be open to it at this
moment in time,” he said, before sug-
gesting he would prefer moving to a club
in France or Spain.
The comments reveal frustration at
not being considered a regular starter at
City for several months, and came dur-
ing a sprawling conversation in which
the player also discussed his leading role
in the England national team during this
summer’s European championships, as
well as the racist abuse faced by black
English players.
But it is Sterling’s declaration on a
potential move that will gain most
attention. One of the Premier League’s
stars, he signed for City in 2015 from
Liverpool for a transfer fee of £49m, a
record for an English player at the time.
Sterling’s existing contract with City
ends in 2023. His availability is likely to
command interest from many of the
world’s biggest clubs, but a move may
prove difficult at a time when the sport’s
multibillion-euro transfer market has
‘I feel like when you
mention racist abuse,
it is not taken as seriously
as other topics’
been depressed as teams cut back
spending on players.
The continent’s clubs have collec-
tively suffered revenue shortfalls worth
€8bn ($9bn) during the pandemic
because of lost ticketing and broadcast-
ing revenues, according to the European
Club Association, the body that repre-
sents more than 200 leading sides.
Top Spanish clubs Real Madrid and
FC Barcelona have responded to the
financial crisis by conducting a fire sale
of players this year. France’s Paris Saint-
Germain, which is owned by the Qatari
state, has retained its huge spending,
signing the likes of Argentine superstar
Lionel Messi, but also appears well
stocked with attacking talent.
But Sterling said: “As an English
player, all I know is the Premier League.
I’ve always known that maybe one day I
would love to play abroad and see how I
would come up against that challenge.”
He was a key fixture in the the Eng-
land men’s team that reached its first
major final in 55 years at this year’s Euro
2020 competition.
Sterling criticised politicians who did
not defend the team for “taking the
knee” before matches to protest against
racism. Before the Euros, UK home sec-
retary Priti Patel dismissed the act as
“gesture politics”.
After three black England players
missed penalties in the shootout in the
final against Italy, a match England lost,
they were subject to a torrent of racist
abuse online. “It should be a case where
you see a situation happening that
should not be allowed to happen,” said
Sterling. “I feel like when you mention
racist abuse, it is not taken as seriously
as other topics.”
4 ★
Russia’s arrest of cyber security executive
on treason charges sends hostile message
Kremlin critic Sachkov faces 20 years in jail while hacker drives around Moscow in Lamborghini
MAX SEDDON — MOSCOW
Ilya Sachkov did not hold back, even
though Russia’s prime minister was
watching him on a panel starring
the heads of the country’s top tech
companies.
The co-founder of Group-IB, which
investigates cyber crimes such as hack-
ing and online fraud, poured scorn on
the Kremlin for turning a blind eye to
the epidemic of ransomware attacks
emanating from Russia.
“No Russian state organ . . . is
responding to this at all . . . believe me,
this affects the image of Russian compa-
nies that export information security,”
Sachkov said. “What’s going on in the
country if the whole world is telling you
there’s criminality?”
In his speech, he pointed to Maksim
Yakubets, head of the Evil Corp hacking
group, whom the US has accused of mas-
terminding a decade-long crime spree
that has cost banks hundreds of millions
of dollars.
Yakubets has been seen driving
around Moscow in a fluorescent camou-
flage Lamborghini, with a custom
licence plate that reads “THIEF”. He
also “provides direct assistance to the
Russian government’s malicious cyber
efforts”, according to US Treasury sanc-
tions against him.
Sachkov’s criticism of the Kremlin’s
apparent tolerance of some online crim-
inals continued until late September,
when he was arrested by the FSB, Rus-
sia’s intelligence agency, and charged
with treason. Details of the charges
against him are classified, but his arrest
and the 20-year sentence he faces if
found guilty, have reverberated around
Russia’s cyber security community.
Three people in the sector said the
Kremlin was signalling that it did not
want to co-operate with the west on
cyber crime and would punish those
who stepped out of line.
“It looks like a totally hostile action
against the Americans,” one of the peo-
ple said. “He was the only person who
loudly accused people of ransomware
activity,” referring to the practice where
hackers lock up computers until a
ransom is paid.
Dmitry Volkov, the Group-IB
co-founder who took over as
chief executive after Sachkov’s
arrest, said the company did
not know what he had been
Contracts & Tenders
Hard drive: charged with and was convinced he was
Maksim innocent.
Yakubets is “All the materials of the case are clas-
spoken to by a
police officer in
sified, which provides fertile ground for
rumours and speculations. Without
Moscow in 2019. access to these materials, making any
Below, Ilya assumptions or promoting any versions
Sachkov would be wrong,” Volkov said.
PA
US president Joe Biden and Russia’s
Vladimir Putin restarted bilateral cyber
security talks this year for the first time
since the annexation of Crimea in 2014.
Last month, the US deported convicted
hacker Alexei Burkov to Russia, a move
the Kremlin called “a rather positive
development”. But they are yet to make
tangible progress on Russia’s apparent
reluctance to tackle ransomware gangs,
which the US says operate with the tacit
encouragement, or even direction, of
the security services.
Washington is seeking to extra-
dite Vladislav Klyushin, a Krem-
lin cyber security contractor,
from Switzerland on insider
trading charges. Last month,
the US imposed sanctions on
Businesses For Sale
FINANCIAL TIMES
INTERNATIONAL
Suex, a cryptocurrency exchange it
accuses of laundering proceeds from
ransomware attacks, which researchers
have linked to people and offices in
Russia.
Sachkov’s arrest while people like
Yakubets remain at large is a “big signal
the Russian government is sending to its
international partners”, said Thomas
Rid, professor of strategic studies at
Johns Hopkins University. “Are they
serious about cyber crime, or are they
arresting more cyber security execu-
tives than ransomware criminals?”
Group-IB has attempted to build a
global business while remaining on the
good side of the Russian government.
Sachkov has met Putin at least twice and
Group-IB has worked with Russian
police to catch a growing number of
online fraudsters and card scammers.
At the same time, it has moved its
headquarters to Singapore, added many
international clients and considered a
$1bn initial public offering. It has also
partnered with Interpol on criminal
investigations and Sachkov has lent his
expertise to the Organization for Secu-
rity and Co-operation in Europe and the
Council of Europe.
Trying to tread the line between the
two sides proved difficult. The US and
UK banned products by Kaspersky Lab,
Russia’s largest cyber security company,
from government systems after suspi-
cions over the company’s ties to the FSB.
Positive Technologies, a software com-
pany, was placed under US sanctions in
April for allegedly supporting the FSB.
Co-operation with western law
enforcement risked repeating the fate of
former senior Kaspersky Lab employee
Ruslan Stoyanov, who in 2019 was sen-
tenced to 14 years in prison for treason
alongside Sergei Mikhailov, formerly
the FSB’s top cyber security official.
Sachkov gave evidence for the prose-
cution in the closed trial, where the two
men were reportedly accused of passing
on classified information about an
alleged cyber criminal to the FBI.
Mikhailov’s lawyer told Russian news
outlet RBC that Sachkov had given
“false evidence that allowed the investi-
gators to conclude [Mikhailov] was
involved in state treason”.
In an open letter to Putin published in
Russia’s version of Forbes last week,
Sachkov’s mother, Lyudmila Sachkova,
suggested that her son had stepped on
the toes of powerful special interests.
‘All the “With all due respect to the FSB, eve-
ryone remembers how many highly
materials of respected people, the pride of the
the case are nation, were ruined for being ‘enemies
of the people’ [during Stalin’s purges]. Is
classified, history repeating itself?” she wrote.
which “Ilya could not have betrayed the Moth-
erland. Nobody believes he is guilty.
provides Only the hackers are gladly crowing
fertile about this!”
Group-IB’s international focus also
ground for risked triggering the FSB’s concerns that
rumours’ US intelligence would have a way to
access the company’s data, say two peo-
ple in Russia’s cyber security industry.
“In cyber security, you can have
access to very sensitive data. And the
Kremlin clearly considers it a key strate-
gic sector,” said Julien Nocetti, an associ-
ate fellow at the French Institute of
International Relations.
“The message is: don’t speak up about
it, don’t internationalise it without FSB
prior approval and, especially, localise
your clients’ data on Russian soil.”
Volkov said Group-IB had never had
access to any classified information.
Contracts & Tenders
Friday 15 October 2021
Privacy
Experts call
for banning
of official
‘snooping’ on
smartphones
MADHUMITA MURGIA — LONDON
A group of world-leading cryptography
and security experts has warned that
scanning images on smartphones, sim-
ilar to a scheme proposed by Apple in
August, should be treated like mass
surveillance and prohibited by law.
“[Device scanning] makes what was
formerly private on a user’s device
potentially available to law enforce-
ment and intelligence agencies, even in
the absence of a warrant,” said the
authors, who include Whitfield Diffie,
an inventor of public key cryptography,
Ronald Rivest, an inventor of the widely
used RSA encryption system, and fire-
wall expert Steven Bellovin.
“Because this privacy violation is per-
formed at the scale of entire popula-
tions, it is a bulk surveillance technol-
ogy,” they added.
The researchers raised the alarm as
calls to circumvent encryption from
intelligence and law enforcement agen-
cies become increasingly strident, with
the EU due to propose a new law on child
protection that may include suggestions
for device scanning in December.
It also follows now-delayed plans by
Apple to install software on American
iPhones to scan continuously for child
abuse imagery.
Such an automated system would
proactively alert a team of human
reviewers who would then contact law
enforcement, if they believed illegal
imagery was detected. Apple halted
plans to launch the software after a
fierce backlash from privacy campaign-
ers and other tech companies.
“The concern is that European insti-
tutions could bring in a law making
something like Apple’s child abuse
blocking proposal mandatory for peo-
ple providing phones and chat apps,”
said Ross Anderson, a co-author of the
paper, titled Bugs In Our Pockets, and a
professor of security engineering at the
University of Cambridge.
“Interfering with the security of peo-
ple’s devices by making them intrinsi-
cally easy to wiretap, putting in govern-
ment-mandated snooping software that
will look at your pictures, texts and vid-
eos to see if there is anything the govern-
ment doesn’t like, really does cross a red
line.”
Friday 15 October 2021 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Friday 15 October 2021

Business bashers It is fashionable but wrong to argue that a good kicking leads to enhanced corporate performance y OPINION

M Stanley and Springing ahead Backing by Nike and buyout

firm RedBird values James’s group at $725m
US listings
bring bumper
Citigroup post rewards for
early investors
strong earnings MILES KRUPPA — SAN FRANCISCO

A wave of US public listings and sales

on M&A wave
3 US banks overcome low interest rates
3 BofA also boosted by dealmaking fees
JOSHUA FRANKLIN AND IMANI MOISE
NEW YORK
US banks Morgan Stanley and Citigroup
both benefited from a surge in dealmak-
ing that bolstered revenues in the third
quarter and helped offset continued
pressure from low interest rates and
weak loan demand.
In third-quarter earnings yesterday,
Morgan Stanley posted investment
bank revenues of $2.85bn, up 67 per
cent from $1.7bn a year earlier and well
ahead of analysts’ forecasts for $1.9bn,
according to data compiled by Bloomb-
erg. The outperformance relative to
analysts’ estimates came from far better
than expected fees from advisory work
on mergers and acquisitions.
Rival JPMorgan Chase on Wednesday
‘Volatility towards the end
of the year certainly did
create opportunities for us’
Mark Mason, Citi CFO
reported a 52 per cent rise in investment
banking fees that totalled $3.3bn.
Investment banks are raking in
record sums from fees thanks to a rush
of dealmaking, compensating for a drop
in trading revenue that surged in the
first year of the pandemic.
“The investment banking side, the
lens I have right now is in the fourth
quarter and I think that the fourth quar-
ter remains strong with clients
active,” Sharon Yeshaya, Morgan
Stanley’s chief financial officer, told the
Financial Times.
Wall Street had forecast a 2 per cent
decline in revenue across Citi’s business
lines as fees from fixed income trading
normalised after reaching record highs
at the height of the pandemic.
Investment banking fees have
stepped in to pick up the slack, jumping
have brought a windfall for tech inves-
tors and employees, providing a record
$582.5bn in the year to September.
Start-ups that completed initial public
offerings, direct listings or deals with
special purpose acquisition companies
made up $513.6bn of the total, with
93 listings occurring between July and
September. Sales accounted for the
remaining $68.9bn.
The data from PitchBook, which
researches start-ups, showed that pro-
39 per cent, as markets revenue ceeds from sales and public listings were
dropped 4 per cent. Citi said that group- already twice as high as last year.
wide revenue rose 3 per cent excluding The rise in listings promises to deliver
the impact of a loss from the sale of the huge gains for venture capital firms and
bank’s consumer business in Australia. their investors, extending a hot streak of
Including that impact, revenue dropped debuts going back to the IPOs of Airbnb,
1 per cent to $17.2bn. DoorDash and Snowflake last year.
At Bank of America, which also Investors have pointed to the size of
reported earnings yesterday, invest- the recent exits to justify a sharp jump
ment banking fees rose 23 per cent to in venture capital dealmaking this year,
$2.2bn, helping it achieve overall dou- which has already exceeded last year’s
ble-digit revenue growth. record total by more than 40 per cent,
Heightened activity among Citi’s according to PitchBook data.
institutional clients also offset declines The favourable market had encour-
in its global consumer business, where aged some investors to raise the valua-
revenue dropped 13 per cent owing to tions of private start-ups to the point
almost non-existent loan demand. that public listings had become the only
Costs rose 5 per cent as the company viable exit opportunities, said Andrew
continued investing in operations to sat- Adams, managing partner at venture
isfy a regulatory consent order. firm Oak HC/FT.
Overall, Citi reported net income of “It puts a lot of pressure on building a
$4.6bn, or $2.15 per share, compared Media group SpringHill, which was co-founded by LeBron James, aims to expand into the metaverse — Ringo HW Chiu/AP great company,” Adams said.
with earnings of $3.1bn, or $1.36 per While sales to companies and private
share, in the third quarter of 2020. for us to either partner with or buy.” politics into sports. It’s about culture equity sponsors make up the majority of
Though fixed income trading fell
SARA GERMANO AND
JAMES FONTANELLA-KHAN — NEW YORK
SpringHill is projecting revenues of and empowerment. And what these start-up exits, large public listings rep-
across the board, it was not as bad as the Private equity firm RedBird Capital, $100m for its next four quarters, up guys are doing is they are giving voice resent a growing chunk of the proceeds
20 per cent declines projected by ana- together with Nike, Epic Games and from $60m in 2020. Carter said that it to under-represented diverse groups from venture capital investments. Ven-
lysts such as Coalition Greenwich. the owners of the Boston Red Sox and wanted to expand beyond its opera- in society,” he said. ture capital firms rely on exits to return
Citi reported a 16 per cent fall in fixed Liverpool FC, are investing in basket- tions in the US and Canada to the UK, He said that “only 5 per cent of the cash to investors such as endowments.
income trading fees, while Morgan ball star LeBron James’s SpringHill Europe and Japan via partnerships marketing industry spend that’s out Brokerage Robinhood produced the
Stanley posted a 16 per cent drop and Company at a valuation of $725m. with “companies and brands that there is invested in diverse business largest exit for investors in the third
Bank of America’s earnings here fell less have the same ethos and believe in owners, and those diverse business quarter after completing an IPO that
than 1 per cent. “We were too conserva- SpringHill, a media and entertain- what we believe in, when it comes to owners represent 40 per cent of the gave it a market capitalisation of $32bn.
tive,” Credit Suisse analyst Susan Katzke ment business, was founded by the culture and empowerment”. US population. That’s a fail.” It had raised about $5.6bn from private
acknowledged in a note to clients after Los Angeles Lakers player and his The company operates the enter- The investment was led by Main investors before the listing.
initial earnings results. longtime business partner Maverick tainment platform Uninterrupted, Street Advisors. Carter and James, the Cryptocurrency exchange Coinbase
Recent oil market swings helped slow Carter. The investing round is aimed which produces films, podcasts and chair of SpringHill, will remain con- completed the largest direct listing so
some of the fall Wall Street had been at giving it the firepower to move into other media to tell the stories of ath- trolling shareholders. far this year, hitting a market cap of
braced for. “Volatility towards the end ventures such as the metaverse — the letes beyond the arena in which they RedBird, James and Carter are $76bn on its first day of trading in April.
of the year certainly did create opportu- much-hyped concept of an immer- perform. Recent subjects have minority shareholders in Fenway Venture capitalists and other insiders
nities for us to trade with investor cli- sive, virtual reality world — and included Naomi Osaka and Muham- Sports Group, the ownership vehicle typically must wait six months after a
ents and other clients who were reposi- broadening its appeal beyond North mad Ali, both known for their advo- behind the Red Sox and Liverpool. public listing to begin offloading shares,
tioning,” Citi CFO Mark Mason said. America to Europe and Asia. cacy of social issues. James, who is entering his 19th sea- though direct listings have no restric-
Morgan Stanley reported overall Carter, SpringHill’s chief executive, Gerry Cardinale, founder and man- son in the NBA, has endorsed Nike tions on selling.
group revenue of $14.7bn, up from said: “[RedBird] could be very helpful aging partner of RedBird, said that the throughout his career, and the sports- “People are rushing to the exit just so
$11.7bn a year earlier and beating ana- with us on our long-term strategy, our SpringHill move was an investment in wear group’s chief operating officer the door doesn’t slam right in front of
lysts’ consensus for $13.7bn. M&A strategy and deal flow, finding the converging worlds of sports Andy Campion will take a board seat them,” said Cameron Stanfill, venture
See Lex deals in companies that make sense and culture. “It’s not about bringing at SpringHill. analyst at PitchBook.

Legal Notices
Businesses Google’s blue-sky thinking assumes the break-up of the cloud
For Sale
But that will still leave it well behind the demand rises to process ever-larger
Business for Sale, Business Opportunities,
Business Services,
INSIDE BUSINESS the estimated $61bn of Amazon Web volumes of data in real time.
Business Wanted, Franchises Services and $37bn of Microsoft’s Azure. AWS and Microsoft got to this idea
Runs Daily TECHNOLOGY Google’s latest bid for relevance came first, with services known, respectively,
............................................................................................................................. at its annual cloud conference this week, as Outposts and Azure Stack. Cloud
Classified Business Advertising
UK: +44 20 7873 4000
Email: advertising@ft.com
Richard with the general release of a data ware-
housing service that taps into data held
computing, however, is still only esti-
mated to account for 5-10 per cent of the
Waters in a number of different clouds, not just
its own. If customers already have much
global IT market: it is still relatively
early days in this slow-moving revolu-
of their data sitting in Amazon’s S3 stor- tion, with plenty of time for all three to
age service, then this is a way for Google create giant businesses around the idea.

G
oogle’s giant data centres
are temples of the informa-
tion age. Built for consumer
services that reach billions
of people, they also serve as
a platform for the search company’s
push into cloud computing — a market
that could one day be even larger than
its advertising business.
This week, however, Google tried a
different tack. In its latest bid to catch
up with Amazon and Microsoft in cloud
computing, it took a step beyond its own
data centres. In the process, it shone a
spotlight on two of the most important
trends shaping the future of cloud com-
puting — and, by extension, much of the
IT world.
One of these goes by the name multi-
cloud. As the name suggests, it involves
harnessing the resources of several
different public clouds to handle a com-
puting task.
For customers, it reduces the risk of
lock-in by a single cloud supplier —
while for Google, it could open the way
to becoming a more serious operator in
a market it was late to attack.
At the moment, the search company
is a distant third in cloud computing. Its
Google Cloud Platform has become one
of the company’s most promising busi-
nesses: analysts at Jefferies estimate its
revenue will jump 56 per cent this year,
to $10.4bn.
to reach in and make use of it for one of
its own services.
Breaking down cloud boundaries like
this could turn data storage into a com-
modity — or, more precisely, prevent
storage from becoming something that
ties customers to a cloud provider’s
other, higher-value services.
It also highlights where Google’s best
chance may lie in the cloud wars. The
search company
likes to tout the Moving data storage and
efficiency and
security of its own processing closer to
IT infrastructure. customers could seed a
But its real edge
may lie in the new market for smaller,
higher-value serv- local operators
ices such as data
analytics and AI that have been honed
on its giant consumer services.
The other important trend high-
lighted by Google this week involves
moving the cloud closer to customers.
Rather than centralising computing in
large data centres, this means setting up
smaller facilities to handle some of the
work locally, creating something known
as a distributed cloud.
The same software and single inter-
face are used to control these far-flung
computing resources, but customers
have the comfort of keeping their data
locally, and response times are faster.
The forces pushing computing to the
edge of the network are likely to grow as
Moving data storage and processing
closer to customers could seed a new
market for smaller, local operators in
so-called “edge” computing.
Instead of giant, monolithic clouds
dominating the future of computing,
this could support a more diverse collec-
tion of local operators — though the soft-
ware orchestrating these more dispa-
rate networks would still come from a
handful of dominant companies.
For Google, which has always shown a
high level of tech self-assurance (some
would call it arrogance), all of this
marks a significant departure. Its early
strategy for the cloud — build the best
technology and assume that customers
would beat a path to its door — did not
work. Adapting to the realities of a more
heterogeneous IT world, where custom-
ers already rely on multiple suppliers,
has opened a new avenue.
“Google has always been an innova-
tion engine — what we’re now seeing is a
much more external focus,” says Ed
Anderson, an analyst at Gartner.
At their own annual cloud events in
the coming weeks, Microsoft and AWS
will doubtless have much more to say on
these themes as well. As they square up
to each other in cloud computing, this is
at least one market where some of the
giants of Big Tech are slugging it out in
fierce competition with each other.
richard.waters@ft.com
Friday 15 October 2021 ★ FINANCIAL TIMES 7
8 ★ FINANCIAL TIMES Friday 15 October 2021

COMPANIES & MARKETS

Financials Technology

Credit Suisse angers Greensill investors Getir sues

Bank’s offer of free services
amid fallout from collapsed
group sparks consternation
OWEN WALKER AND STEPHEN MORRIS
LONDON
Credit Suisse clients suing the bank over
the collapse of its Greensill Capital-
linked supply-chain finance funds
seven months ago have responded
angrily to its offer of free services.
The Swiss lender has begun contact-
ing the more than 1,000 wealthy clients
who invested in the $10bn group of
funds, offering refunds on fees from
brokerage, discretionary mandate and
banking services, as well as investment
advice.
Those who have initiated legal pro-
ceedings against the bank will not be
offered the rebates, but they may be eli-
gible if they drop their claims, said a per-
son briefed on the offer.
“Why are they trying to offer this to
clients months after the funds col-
lapsed?” asked one individual who
invested several million dollars in the
funds. “This should have been one of the
first steps they took.”
The investor said that it was “out of
the question” that he would drop his liti-
gation in return for the free services,
adding: “On a moral basis, this is about
more than just me getting the money
back. It demonstrates how banks work
and that they need to change.”
Another investor said: “This seems
like a too-clever way of circumventing
treating all investors in the vehicles
equally.”
Hundreds of Credit Suisse clients
invested in the supply-chain funds, hav-
ing been told by the bank’s advisers and
marketing material that they were
investing in low-risk products, fully
insured against losses.
In March, the Swiss lender suspended
the $10bn suite of funds linked to
Greensill, which collapsed into admin-
istration amid allegations of fraud
against it. While about $7bn has been
collected so far, the bank has warned
Oil & gas. Inflation
that about $2.3bn will be difficult to
recoup.
Several lawsuits have begun, focused
on what lawyers believe were mislead-
ing statements in the fund documents
about whether insurance policies would
cover losses. Law firm Boies Schiller
Flexner, which is preparing one class-
action suit, said that the latest offer
from Credit Suisse had “alarmed” its cli-
ents. “This is a concerning move from
Credit Suisse, appearing to constitute a
derisory inducement to investors not to
litigate valid claims against Credit
Suisse or to drop lawsuits already com-
menced,” it said.
The bank said that clients who took
advantage of the offer, which was first
reported by Reuters, would not have to
forgo future legal action, but they would
need to agree that what they gained
from litigation would be reduced by the
amount they were reimbursed.
Credit Suisse said it had been in talks
with clients in recent months. “We have
taken their feedback on board . . . [and]
we are now able to grant special condi-
tions as a gesture of our commitment to
these important relationships,” it said.
A person close to the bank added: “It’s
a free option, we’re not asking investors
to give anything up. But it’s only fair to
other investors — and shareholders —
that any benefits that clients accrue are
taken into account if they go down the
legal route.”
agency over
alleged lax
delivery on
taxi adverts
KADHIM SHUBBER — LONDON
Getir has opened a new front in the gro-
cery delivery start-up wars: against its
UK advertising agency in London’s
High Court.
The $7.5bn Istanbul-based company,
which has raised almost $1bn this year,
has sued Enjoy Media over £671,328,
alleging that the agency placed its
advertisements on fewer London taxis
than had been agreed.
The lawsuit, filed by Getir’s UK divi-
sion, highlights the high stakes in the
nascent grocery delivery market, where
companies are fighting tooth and nail to
ensure that they are the app that cus-

Shale patch hits supply-chain and labour snags
Rising expenses including for
steel, wages and equipment
put squeeze on operators
JUSTIN JACOBS — HOUSTON
DEREK BROWER — NEW YORK
The supply bottlenecks and labour
shortages felt across the US economy
are driving up the cost of shale oil pro-
duction, a trend that is helping under-
pin the price of crude.
Expenses including steel, wages and
contracts to hire drilling rigs are on the
increase.
Cost inflation in the oil patch was
likely to run at 10 to 15 per cent next
year, much faster than the broader US
price indices, said Artem Abramov,
head of shale research at Rystad Energy.
It could have consequences for global
oil markets.
Moody’s, the debt rating agency,
recently raised its expected oil price
range for the next two years by $5 a bar-
rel, to $50 to $70 a barrel, noting that
“production costs started to rise in step
with oil demand and a broader eco-
nomic recovery”.
Oilfield services companies, which
carry out tasks such as drilling wells and
disposing of waste, have warned for
months that they will shift the rising
cost burden of supplies and wages to
producers.
Jeff Miller, chief executive of Hallibur-
ton, the third-largest oilfield services
company by revenue, said in July that
there had been “inflation in many parts
of our business, but we’ve been able to
pass that along”.
Oil has been trading at seven-year
highs, with West Texas Intermediate
above $80 a barrel, as petroleum mar-
kets spring back from the lockdowns at
the onset of the pandemic.
The oil price was enough to make
most new wells profitable to drill even
with rising costs, Abramov said.
Forecasters expect that US produc-
tion will grow by about 800,000 barrels
a day over the course of 2022, a sharp
increase from this year.
The number of rigs drilling for new oil
and gas wells, an indicator of industry
health, had grown steadily to 533, nearly
double what it was this time last year,
according to oilfield services company
Baker Hughes.
But as the industry has tried to
expand again, it is running into the kind
of supply chain and labour problems
bedevilling consumer brands such as
McDonald’s, Ford and Walmart, raising
costs and lifting the price at which a pro-
ducer can break even.
Abramov said the price to profitably
drill a typical well in Texas’s Permian
Input costs are Basin, the largest US producing region, delivery times almost doubled between
at a record for could rise from about $50 a barrel to $55 the second quarter and the third.
oilfield services next year. More than half of the surveyed oilfield
businesses, A Federal Reserve Bank of Dallas sur- services companies reported difficulty
and supplier vey of more than 100 oil and gas produc- in recruiting, citing applicants who were
delivery times ers and oilfield services companies last not qualified or who asked for more pay
have lengthened month found that businesses were than was on offer.
Nick Oxford/Reuters
struggling to find workers and coping Jeff Wilhelm, a senior vice-president
with delayed and more expensive deliv- at Flex Flow, a Midland, Texas-based
eries of equipment and materials. company that provides well-pumping
Input costs reported by oilfield serv- services in the Permian, said he had
ices groups were at a record, the Dallas seen people leave the business for good
Fed said, while an index of supplier after last year’s crash prompted job cuts.
Wilhelm said: “I’ve phoned up guys
Gains have moderated for oilfield services that I’ve known for many years and
they’ve said, ‘You know, Jeff, I got out of
stocks the energy business and I’ve gone the
Change in past 12 months (%) insurance route’ or the healthcare
150 route . . . they’re looking for something
a little more stable. That’s disappoint-
ing, because some of these guys had 20
100
to 25 years of experience. It’s hard to
backfill that.”
50 Wilhelm also said that shortages of
some specialised rubber, plastic and
S&P Oil & Gas Schlumberger precious metals products used in the oil-
Equipment Select Halliburton 0 fields were forcing companies to post-
Industry index Baker Hughes pone work for days or even weeks.
-50 The US oilfield services sector was
already struggling when the pandemic
Oct 2020 2021 Oct drove dozens of companies into bank-
Source: S&P Global Market Intelligence
ruptcy. While the shares of survivors
‘You know, initially rallied on prospects of a recov-
ery, gains have since eased.
Jeff, I got Raoul LeBlanc, analyst at IHS Markit,
out of the said that while the sector might be able
to pass on some rising costs to oil and gas
energy producers, oilfield equipment was still
business in surplus.
“We still have roughly the same
and I’ve amount of equipment as we did in 2019,
gone the when activity was 60 per cent higher
than it is now. So there is an abundance
insurance of steel — rigs, generators, pumps,
route’ trucks,” LeBlanc said. “That kit is dura-
ble, meaning oilfield service companies
have to wait for demand to fully return
before they regain pricing power. The
immediate problem is finding people to
operate them.”
But a prolonged drought of invest-
ment in equipment and recruitment
could lead to a fresh surge in energy
inflation if the industry tried to grow
beyond pre-pandemic levels, said Scott
Sheffield, chief executive of oil and gas
producer Pioneer Natural Resources.
“The capital may be there due to
higher oil prices, but the people, the
labour, the inventory . . . the equip-
ment, drilling rigs, the frack equipment,
it just is not there,” he said earlier this
month. “That’s going to be a problem if
the world needs us in 2023 to ’25.”
tomers think of first when they need
groceries fast.
Getir is a pioneer in the market, and in
2015 began offering customers in Tur-
key convenience store items delivered
to their homes in as little as 10 minutes.
The company, founded by Nazim
Salur, has expanded across Europe and
is planning a US launch. Its investors
include Tiger Global, Sequoia Capital
and Mubadala Investment Company.
The start-up was launched in the UK
in January and began a media blitz soon
after with its distinctive purple and yel-
low adverts.
In March, Getir hired Enjoy Media, a
small agency run by Arzu Kufundur, to
The lawsuit claims
Enjoy Media ‘directly
helped’ competitors
Gorillas and Zapp
advertise across London’s transport
network.
Enjoy Media subcontracted with
another company, according to the
lawsuit.
By July, Turancan Salur, the son of
founder Nazim and Getir’s UK manager,
had begun complaining to Enjoy Media,
the lawsuit said, that fewer London taxis
were roving the capital’s streets embla-
zoned with Getir’s branding than he had
expected.
Getir backed up its concerns with
what it said was hard data.
Over a period of six weeks this sum-
mer, four Getir staff members took a
total of 2,000 photos of taxis in the capi-
tal in an effort to spot taxis covered by
the deal with Enjoy Media that did not
display Getir’s advertising.
The lawsuit said Getir’s staff spotted
168 taxis that were “non-compliant”,
and claimed that the true number could
be much higher. The total number of
taxis in the agreement was 737.
Four of the cabs snapped by Getir car-
ried the adverts of its direct competi-
tors, the company claimed.
“[Enjoy Media] directly helped
Getir’s competitors Gorillas and Zapp
in advertising their services,” the law-
suit alleges.
Enjoy Media is yet to file its defence
in court.
The lawsuit cited an email from
Kufundur stating that the number of
non-compliant taxis in July was 63. A
lawyer for the company, Ozan Askin,
said it would “defend the claim and its
interests robustly”.
He said: “We shall be applying to the
court to bring in a third party into this
claim. The proceedings are in their
infancy, and we are therefore unable to
comment any further at this stage.”
Getir said: “Getir UK Limited can con-
firm that it has brought a claim against
Enjoy Media Limited for breach of con-
tract with a view to achieving a positive
and fair resolution in due course.”

Industrials Retail

ArcelorMittal pauses European steel plants
SYLVIA PFEIFER — LONDON
ArcelorMittal has temporarily
“paused” production at some of its
plants at peak times as soaring energy
costs hit Europe’s largest steelmaker.
The company said it had been forced to
implement “short, selective production
pauses” at some of its electric arc fur-
naces in Europe that make so-called
“long products”, that are typically used
in the construction sector.
It said the pauses were “aligned with
the hourly/daily changes in electricity
prices”, adding that they were “in
response to the high energy prices,
which are making it very challenging to
produce steel at economical costs”.
It stressed that it did not anticipate
the pauses to have a “meaningful
impact” on production volumes or its
ability to meet customer demand.
Matt Watkins, principal analyst at the
commodities consultancy CRU, said
that European operators of electric arc
furnaces in particular were exposed to
the high cost of electricity and were
struggling more as a result.
ArcelorMittal typically produces
about 40m tonnes of steel in Europe a
year, of which about 10m is for the con-
struction products affected.
The news underlines the strains fac-
ing Europe’s steelmakers as high energy
costs and supply chain disruptions off-
set what had, until recently, been one of
the strongest years for the industry
because of soaring commodity prices.
While many companies will be pro-
tected by long-term contracts and hedg-
ing, the surges on the spot markets are
beginning to be felt.
In Spain, steel producer Sidenor said
it had been forced to curtail production
by 30 per cent between now and the end
of the year due to what it called “exorbi-
tant electricity prices”.
The UK government is considering a
rescue plan to help the steel industry
and other energy-intensive users
through the winter, with warnings facto-
ries could close without state support.
Several steelmakers, including British
Steel in the UK, have introduced sur-
charges on certain products to soften
the impact of higher costs of production.
British Steel, which is owned by
China’s Jingye Group, said it had been
forced to introduce “temporary energy
and transport surcharges on all new
orders from October 1”.
Watkins said the industry had also
been hit by the global chip shortage,
which has affected the automotive sec-
tor. A drop in demand from Europe’s
carmakers was starting to hit orders.
Ikea fears another year of stock shortages
RICHARD MILNE
NORDIC AND BALTIC CORRESPONDENT
Ikea has become the latest retailer to
warn on supply chain problems, saying
yesterday that stock shortages were
likely to last another year.
Jon Abrahamsson Ring, chief executive
of Inter Ikea, said: “We actually foresee
that the availability and raw materials
challenge will continue for the better
part, if not the whole, of [the financial
year to the end of August]. This is here
for a longer period than we thought of at
the beginning of the crisis.”
Reporting annual results, the largest
furniture retailer said the pandemic had
helped its business, speeding up change.
Sales in the year to the end of August
increased 6 per cent on the previous
year to a record €41.9bn, boosted by an
almost doubling in online sales.
Jesper Brodin, chief executive of the
biggest Ikea franchisee, Ingka, said Ikea
had accelerated its shift away from sell-
ing from big out-of-town stores to more
city-centre shops and to ecommerce
sales, which have risen from 7 per cent
of the total in 2019 and 18 per cent last
year to more than 30 per cent now.
“This situation has given us a boost
like never before to speed up our trans-
formation,” he said.
Ikea has used trains to transport
goods from Asia to Europe and bought
and hired its own containers.
Ring said Ikea was unlikely to make
big changes to its supply chain as a result
of the crisis, which occurred as retailers
have tried both to restock and to deal
with a wave of demand.
“We will continue to work very closely
with a focused number of suppliers,”
he said.
Ikea, which reports full results later in
the year, was in the middle of the biggest
shake-up in its 78-year history — aiming
to end reliance on customers collecting
and building their own furniture —
when the pandemic hit.
It has recently bought companies that
build furniture for customers as well as
augmented-reality start-ups to help cus-
tomers with home planning.
Brodin said that Ingka, which
accounts for about 90 per cent of Ikea
sales, had invested €2.2bn in recent
years in new store formats including
stores focusing only on kitchens or bed-
rooms, as well as smaller general shops
in city centres, such as one to be opened
soon in Stockholm.
“We are still working hard on crack-
ing the code around the product range
and logistics. But the traffic has been
phenomenal.”
Friday 15 October 2021
Start-ups push Latin America to lead tech boom
Region pulls in $4bn of venture capital last year as innovative groups find solutions to widespread structural problems
MICHAEL STOTT
LATIN AMERICA EDITOR
Buying a used car, renting an apartment
or opening a bank account: all recurring
nightmares in Latin America, because
of reams of paperwork, lethargic
bureaucracy and legal pitfalls.
Start-ups created to tackle problems
like these are propelling the region to
the forefront of the emerging market
tech boom. Last year $4.1bn of venture
capital investment flowed into Latin
America, exceeding south-east Asia’s
$3.3bn and beating Africa, the Middle
East and central and eastern Europe
combined, according to the Global Pri-
vate Capital Association.
In the first half of this year, Latin
America pulled in $6.5bn of venture
capital, not far short of India’s $8.3bn.
“We started in this industry in 1999
when there was hardly any internet,
almost all the connections were dial-up
and internet penetration was 3 per
cent,” said Hernán Kazah, co-founder of
Kazhek Ventures, Latin America’s larg-
est early-stage fund with more than
‘There is so much room to
improve people’s lives in
LatAm, because all
systems are inefficient’
$2bn of capital raised to date. “Today,
Latin America finally has critical mass
in almost every market.”
Nubank exemplifies the new breed of
Latin American start-up. Co-founded in
2013 by Colombian entrepreneur David
Vélez after it took him six months to
open a bank account when he moved to
São Paulo, it now has more customers
than any other standalone digital bank
in the world.
A forthcoming IPO could value the
Brazilian fintech at more than $50bn,
according to recent reports. That com-
pares with the $79bn value of Mercado
Libre, the region’s answer to Amazon
and Latin America’s most valuable com-
pany, founded in 1999 in a first wave of
tech activity.
The latest crop of Latin American
start-ups has attracted the attention of
some of the tech world’s deepest-
pocketed investors. Marcelo Claure, the
Bolivia-born chief operating officer of
SoftBank, announced last month a sec-
ond dedicated Latin America tech fund,
committing $3bn on top of $5bn allo-
cated to the first fund in 2019.
“We’ve been incredibly surprised by
the quality and quantity of great compa-
nies that were capital starved, so we
started making investments,” Claure
said. “There is so much room to improve
people’s lives in LatAm, because all sys-
tems are inefficient and plagued by
bureaucracy . . . huge opportunities for
tech to disrupt.”
Mexico’s first unicorn, Kavak, is one
such disrupter. Valued at $8.7bn in a
funding round last month, the company
aims to improve the often hazardous
experience of buying a used car. It offers
buyers a mechanical check, a three-
month guarantee, rapid online credit
and home delivery.
Brazil-based Quinto Andar is simpli-
fying the challenge of renting a flat by
cutting out brokers and offering its own
insurance to vetted tenants, eliminating
the need for huge deposits, guarantors
or costly insurance.
Chilean start-up NotCo has deployed
innovative AI to develop unusual com-
binations of plants to mimic the taste
and texture of milk, mayonnaise, ice
cream and meat. Valued at $1.5bn in a
funding round in July, NotCo has now
expanded into the US and Canada.
Kavak, Quinto Andar and Nubank
highlight how Latin America’s most suc-
cessful start-ups are dedicated to tack-
ling the problems of the region.
“This story of bringing over Silicon
Valley and trying to tropicalise it didn’t
work,” said Ivonne Cuello, former chief
executive of the region’s private capital
association LAVCA. “The role models
Technology
Pinterest co-founder to join Ive’s LoveFrom
TIM BRADSHAW — LONDON
Pinterest’s co-founder and design chief
Evan Sharp is stepping back from oper-
ational duties at the San Francisco-
based social media group to join Sir
Jony Ive’s design company LoveFrom.
Sharp founded Pinterest alongside
Ben Silbermann, who is the company’s
chief executive, and Paul Sciarra, who
left in 2012.
He worked as chief design and crea-
tive officer, helping to launch the online
scrapbook and image-search platform
more than a decade ago.
He would remain on Pinterest’s board
and continue in an “advisory role”, the
company said yesterday.
Success stories that
exemplify the new wave
3 Nubank
Nubank has a claim to be the
greatest success story of Brazil’s
start-up scene. Since launching a
credit card with no annual fees in
2014, the fintech has amassed more
than 40m customers across its
homeland, Mexico and Colombia.
A funding round this year gave
the unicorn a valuation of $30bn
and it is now eyeing an initial public
offering in the US. With a focus on
technology and customer service,
the São Paulo-headquartered
group has challenged a Brazilian
banking industry that is notorious
for high charges and bureaucracy.
Through its smartphone app,
Nubank also offers personal and
business accounts, loans, insurance
and investment products.
3 Kavak
The online used-car platform Kavak
was founded in Mexico in 2016 by
Venezuelan entrepreneurs. The
company recently raised $700m in
a funding round that valued it at
$8.7bn, one of the highest in Latin
America. Investors include General
Catalyst and SoftBank.
Clients can either buy or sell their
used cars on the site, with the
company acting as an intermediary
and carrying out inspections of the
vehicles as well as offering
financing, guarantees and home
delivery. The company now
operates in Brazil and Argentina
and has its sights on further
expansion.
3 Rappi
Rappi is Colombia’s leading start-
up success. Local entrepreneurs
launched the company in 2015 to
deliver groceries but it has since
branched out into areas such as
financial services. Having expanded
into nine countries and more than
200 cities, it aims to become the
“superapp” of Latin America.
Among Rappi’s innovations is the
Turbo Fresh service, which aims to
deliver the most requested
products to customers within 10
minutes, using sophisticated “last
kilometre” logistics. The company’s
name is a word play on “rápido”, the
Spanish word for “fast”.
“What job will ever be able to
compete with leading Pinterest? None,”
Sharp wrote in a memo.
“But when I think about how to create
a life that I love, one thing is clear to me:
I really, really want to grow as a designer
and product builder. That’s why I’ve
made the decision to work with the
designer Jony Ive at LoveFrom.”
His departure comes after a tough
year for Pinterest, which has faced criti-
cism over its culture and has struggled
to capitalise on the uplift to online activ-
ity, which has lifted the shares of rivals.
With a market cap of $33bn, Pinterest
is being valued by investors below peers
Twitter at $50bn and Snap at $118bn.
Pinterest’s stock has lost almost a
★ FINANCIAL TIMES 9
COMPANIES & MARKETS
the curve tends to look very similar over
time,” he said. “It’s slow and gradual
until it eventually hits an inflection
point and it really starts to accelerate.
“Latin America is going through this
inflection point roughly 10 years after
the US and around seven to eight years
after China.”
Latin America’s total tech market
capitalisation stands at 3.4 per cent of
GDP, he said, compared with 30 per cent
in China and 14 per cent in India. Were
Latin America to reach Chinese levels of
tech participation in the economy
“we’re talking about the equivalent of
over a trillion dollars of market value
being created”.
How long that could take is unclear.
Francisco Alvarez-Demalde, co-
founder of US-based Riverwood Capital,
has been investing in Latin American
tech since 2008. While he agrees that
the region is experiencing “a lot of
excitement” and that revenue growth in
the tech sector is likely to be strong, he
notes that funding ebbs and flows.
“There’s a significant increase in capi-
tal availability in the region, which
accelerated in the past few years at a
very rapid pace,” he said. “Where we are
in the cycle is difficult to say [ . . .] we
should be ready for volatility on that
front.”
The region faces other challenges. As
a major exporter of commodities, it is
prone to economic booms and busts and
which started to be successful were the Venture capital is flowing into Latin America Delivery riders its politics are volatile. An electoral
ones which said, ‘There are structural
Investment ($bn)
in Cartagena for cycle currently under way is throwing
problems in the region which can be Rappi, Colombia’s up a wave of anti-establishment candi-
solved by new enterprises . . . designed 0 10 20 30 40 50 most successful dates and demands for greater state
exclusively for the needs of the region.’ ” China start-up — Jeffrey Isaac intervention in the economy.
Kazhek’s Kazah said that Latin Amer- Greenberg/Alamy
There are practical problems, too.
ica’s innovators were inspiring envy. India Except in Brazil, software engineers are
“You see companies outside the region in short supply and universities are not
South-east Asia
saying, ‘I want to be the Nubank of Ger- producing enough tech-literate gradu-
many.’ That did not use to happen.” Latin America ates. Fixed broadband connections are
2020
Financial services have dominated lacking in many areas.
Africa H1 2021
Latin America’s start-up scene, with SoftBank’s Claure, meanwhile, is
Central and
about 40 per cent of the private funding eastern Europe comfortable increasing his tech bets.
to last year going to fintechs, according “Today the Latin American fund has
to LAVCA data. Middle East over 100 per cent IRR [internal rate of
Before the pandemic, more than half Data as of Jun 30 2021
return] in local currency and it’s proba-
of the region’s citizens did not use a Source: GPCA bly the best-performing fund that we
bank. In just a few months from May to have today from an IRR perspective.”
September last year, 40m people
opened a bank account, according to
research from Mastercard.
Fintech start-ups such as Nubank and
Argentina’s Ualá played a key role in
facilitating the expansion.
In Brazil, the central bank has
launched Pix, a fast money transfer sys-
tem over mobile phones that has 110m
registered users.
“You have some of the world’s most
profitable banks sitting in Brazil and
Mexico so it’s an obvious first hit,” said
SoftBank’s Claure. “These banks are
highly inefficient, lots of branches, long
queues and all that . . . so we started
with fintech.”
As in other regions, the pandemic has
accelerated digital change. Latin Amer-
ica has some of the highest per capita
coronavirus death rates and some of its
worst recessions, but Covid-19 also
forced more economic activity online.
“For many years Latin America, a
region which is large as a percentage of
global GDP because these are middle-
income countries, had been underin-
vested in technology,” said Pierpaolo
Barbieri, who founded Ualá in 2017.
“What we’re seeing now is a general
catch-up where everyone is rushing to
see what the opportunities are.”
In some areas, the region is still trail-
ing. “Seventy per cent of commerce in
China is done online, almost 50 per cent
in the United States and . . . it’s still 20
per cent in Latin America, so the process
of economic digitisation still has a long
way to go,” Barbieri added.
Julio Vasconcellos, co-founder of
Atlantico, a Latin American venture
capital fund, has compared the total
market capitalisation of tech companies
in the region as a proportion of GDP with
the same ratio in Asia.
“When you look at the evolution of
the US market, the evolution of the Chi-
nese market and now Latin America,
quarter of its value since the start of
2021, after July’s earnings report
revealed that user growth that fell short
of Wall Street’s expectations.
The San Francisco-based company
has become embroiled in allegations of
gender discrimination.
It paid $22.5m to settle a lawsuit from
a former executive, Françoise Brougher,
last December. Pinterest did not admit
to any wrongdoing.
Ive left his role as Apple’s top designer
in 2019.
In recent weeks, LoveFrom has
started to reveal more about its plans,
and has signed a deal with Exor, parent
of Ferrari, as the carmaker works on its
first electric vehicle.
10 ★ FINANCIAL TIMES Friday 15 October 2021

COMPANIES & MARKETS

Fixed income. Record deals Currencies

Turkish lira
Libor deadline prompts hits new low
surge in CLO issuance after Erdogan
bank sackings
LAURA PITEL — ANKARA

The Turkish lira hit a record low over-

night after President Recep Tayyip
Erdogan ordered a new round of dis-
missals at the country’s central bank.
In a late-night decree published hours
after he met Sahap Kavcioglu, the
bank’s governor, Erdogan removed two
deputy governors.
One of them, Ugur Namik Kucuk, was
the only member of the bank’s seven-
member monetary policy committee to
oppose a rate cut that shocked interna-
tional investors last month, according to
two people familiar with the matter.
“He was the one who voted against the
interest rate cut decision so it’s a pity for
him and for the country,” said one
Istanbul-based banker.
Kucuk was also opposed to the con-
tentious policy of selling off the bank’s
foreign currency reserves in a doomed
bid to prop up the lira, the banker
added. The policy began in early 2019
and continued until the end of last year.
The second sacked deputy governor,
Semih Tumen, had been rumoured to
be in line to succeed Kavcioglu.
Erdogan, who has ruled Turkey for
almost two decades, has gained unprec-
edented control over the nominally
independent central bank after taking
steps to consolidate his own powers.
The president, an opponent of high

Riskier loan-backed securities
will be pegged to a new interest
rate benchmark from 2022
JOE RENNISON — NEW YORK
Managers of bonds backed by pools of
risky loans to indebted companies
are rushing to get deals done before
the Libor interest rate benchmark
underpinning the market begins to fade
away next year.
Issuance of collateralised loan obliga-
tions, which take bundles of leveraged
loans and use them to back payments on
chunks of new debt, has soared to a
record level this year, according to
data from LCD, a division of S&P Global
Market Intelligence.
Total issuance in 2021 reached
$140bn this month, already surpassing
the previous full-year record of just
under $130bn set in 2018.
August and September marked the
heaviest issuance months for CLOs on
record.
The frenetic pace of new deals comes
as the industry prepares for the
transition from Libor, the disgraced
interest rate benchmark at the heart of
global finance that was rigged by
bankers a decade ago.
From next year, new CLOs will have
to be pegged to a new interest rate
benchmark with managers, investors
and bankers still working out exactly
how that will work.
“Many managers and investors are
trying to get deals done now,” said
Ujjaval Desai, head of structured
products investing at Sound Point
Capital Management CLO businesses.
“When we look at our pipeline, it would
be better to get deals done sooner rather
CLO issuance surges to new records
Volume ($bn)
2001 03 05 07 09
* Year to date
Source: LCD, a division of S&P Global Market Intelligence
than later and not have to worry about
the January effect. That’s what’s driving
things right now.”
Regulators have mandated an end of
year deadline for US dollar Libor to stop
being used in new deals with CLOs
issued before that deadline able to
continue being pegged to Libor until a
hard stop in the middle of 2023.
Other managers and some analysts
are quick to point out this is not the only
reason for the boom in CLO issuance.
As inflation pressures mount and the
US Federal Reserve prepares to
withdraw some of its crisis-era support
for financial markets, interest rates —
reflected in the level of Libor or in other
benchmarks like Treasury yields —
have begun to rise.
That has resulted in rekindled
demand for floating-rate investments
like CLOs whose interest payments
rise and fall with benchmark rates,
insulating investors from the prospect
of interest rates moving even higher
still.
Companies have binged on cheap
loans through the Covid crisis, which
150
100
50
0 Victoria Jones/PA
11 13 15 17 19 21*
has provided a big source of debt to
package up in to CLOs.
These instruments are the biggest
buyers of leveraged loans, helping
companies borrow record amounts of
cash this year with those new loans
serving as collateral for new CLO deals.
Nonetheless, the looming Libor
deadline has added a further sense of
urgency in the market.
“Anecdotally we have seen that a lot of
managers are looking to get one more
Libor indexed transaction done this
year ahead of the Libor transition next
year,” said Steve Anderberg, in charge of
rating new CLOs at S&P Global.
Some managers said that, economi-
cally, there was little incentive to wean
themselves off Libor early.
From January, new CLO deals will
most likely be pegged to Sofr, a new
benchmark that differs from Libor
because it is based on actual
transactions in the repo market,
whereas Libor was easier to manipulate
because it was based on bank
submissions.
However, most of the loans available
Into the light: for CLO managers to buy and put in to
the market is new deals will still be pegged to Libor.
preparing to Only a couple of Sofr-based loans has
been issued so far, with a few more in the
move away from
the London works.
interbank This introduces a new mismatch for
offered rate, the CLO managers to contend with. Bankers
disgraced said most loans were currently priced
interest rate off one-month Libor, which is currently
benchmark at 0.09 per cent, whereas tranches of CLOs
the heart of bought by investors were likely to be
global finance priced over Sofr at 0.05 per cent.
To try to erase this difference, the
Alternative Reference Rates Committee
— an industry group formed in 2014
by the Fed to oversee the Libor
transition — has come up with pre-set
“spreads” (essentially an additional
amount of interest) to be added to the
level of Sofr.
But even these are meeting
with disagreement among market
participants.
The additional interest recom-
mended by Arrc to be added for a three-
month period — typical for CLO debt —
is 0.26 per cent, which would take Sofr
to 0.31 per cent, increasing CLO
managers’ interest costs to investors
from the current level of three-month
Libor at just over 0.12 per cent.
Managers argue this spread should be
lower to match Libor or the additional
‘When we fixed yield paid to investors above the
benchmark should reduce to account
look at our for the difference.
pipeline, it It sets up a period of negotiation
with investors, as wrinkles in the patch-
would be work of rates being sewn together are
better to ironed out.
“The cost of capital for the manager
get deals should be the same,” said Robert Zable,
done sooner a senior US CLO portfolio manager in
Blackstone’s credit arm. “How it
than later’ happens will depend on market forces.”
‘[Kucuk] was the one who
voted against the rate cut
decision so it’s a pity for
him and for the country’
interest rates, has clashed with a succes-
sion of governors as he has sought to pri-
oritise high growth at all costs. He has
sacked the central bank chief three
times since mid-2019, as well as dismiss-
ing a number of other officials.
Abdullah Yavas, a longstanding mem-
ber of the monetary policy committee
who had faced criticism in Turkish
media for living in the US, was also dis-
missed in the Wednesday night cull.
In overnight trading, the lira, already
under pressure owing to a strong US dol-
lar and investor concerns about Tur-
key’s economic and foreign policy, fell 1
per cent to TL9.19 to the dollar. The cur-
rency has suffered a bruising few years,
losing 59 per cent of its value against the
dollar since the start of 2018.
The lira came under pressure last
week after Reuters reported that
Erdogan had lost faith in Kavcioglu, who
was appointed as head of the central
bank in March, even though he slashed
the bank’s benchmark rate last month
to 18 per cent at a time when annual
inflation was running at 19 per cent.
The president’s communications
chief rebuffed that claim and the meet-
ing between Erdogan and Kavcioglu,
which was announced by the president’s
Our global office, was interpreted by investors as a
team gives you show of support for the governor.
market-moving Kucuk, a former chief economist at
news and views, the private Garanti bank, often took the
24 hours a day lead in answering questions during the
ft.com/markets central bank’s regular video confer-
ences with foreign investors.

Commodities Equities

BHP seeks to resolve dispute with tribe
over plan for vast Arizona copper mine
NEIL HUME
NATURAL RESOURCES EDITOR
BHP is seeking direct engagement with
Native American communities living
near a vast proposed copper mine in
Arizona, as its partner on the project,
Rio Tinto, struggles to build trust
among native landowners.
Resolution Copper, which has enough of
the metal to satisfy 25 per cent of
projected US demand for 40 years, is
55 per cent-owned by Rio and 45 per
cent by BHP.
The San Carlos Apache tribe, which
has always opposed the project, has said
Resolution’s proposed underground
mine will cause a huge crater, almost
two miles wide and 1,000ft deep, that
would swallow Oak Flat, a site of special
religious significance for the tribe.
Speaking after BHP’s shareholder
meeting in London yesterday, chief
executive Mike Henry said it was
“appropriate” to engage with indige-
nous groups around Resolution Copper
to get a “full, rich understanding of the
local dynamic”.
While Henry said BHP was “very
supportive of Rio”, he added: “We
believe it’s appropriate for us to have
some direct interaction, just so we can
gauge the mood in the group. But it’s not
about us seeking a leadership
role . . . that very much rests with Rio.”
The battle for Oak Flat is likely to be
one of many land disputes as miners
seek to develop new “ore bodies” to
meet rising demand for copper, which is
needed to manufacture electric vehicles
and wind turbines.
Rio badly damaged its credentials
among indigenous peoples last year
The San Carlos Apache tribe has
always opposed the copper project
when it destroyed a 46,000-year-old
sacred Aboriginal site in Australia to
make way for a mine expansion.
A Native American leader in Arizona
declined to meet Rio’s chief executive
Jakob Stausholm when he visited the
state this month.
Terry Rambler, chair of the San Carlos
Apache tribe, said he would rather
spend time lobbying Congress to reverse
a land transfer agreement that would
give Resolution Copper access to all of
the metal that sits below the site, 65
miles east of Phoenix.
Henry, asked if BHP could do a better
job of bringing people on board than
Rio, said his company had a “very strong
record” of engaging with First Nation
peoples, although it was “not perfect”.
Henry added: “We support their
[Rio’s] efforts but we do believe a degree
of direct interaction is appropriate so we
have a full, rich understanding of the
local dynamic with First Nation parties
as well as local communities.”
At yesterday’s meeting, BHP’s Lon-
don investors voted to support its cli-
mate strategy with 83 per cent of votes
cast backing a resolution to approve its
plan to tackle carbon emissions.
TSMC expects profit leap as customers
grow accustomed to higher chip prices
KATHRIN HILLE — TAIPEI
KANA INAGAKI — TOKYO
Taiwan Semiconductor Manufacturing
Company said it could achieve a gross
profit margin of 50 per cent or higher
because customers have become more
willing to pay higher prices amid an
extended global chip shortage.
The world’s largest contract chipmaker
reported net income of NT$156.3bn
($5.6bn) in the three months to Septem-
ber 30, up 13.8 per cent from last year
and 16.3 per cent from the previous
quarter. The results beat analysts’ aver-
age estimates of an 11.2 per cent revenue
increase compared with the second
quarter, with the company increasing
capacity to deal with high demand.
“We expect our capacity to remain
tight in 2021 and throughout 2022,” CC
Wei, chief executive, told investors after
forecasting that full-year revenue would
rise by 24 per cent.
TSMC conceded that demand for
smartphones and PCs, two products in
which its chips are used, had softened
and there was a possibility that custom-
ers would reduce inventory.
But Wei said this was partly caused by
component shortages. He added that if
there were an inventory correction, the
company would be less affected than in
the past because the number of chips
needed in products ranging from smart-
phones to cars was rising.
In a response to the persistent short-
age of semiconductors, particularly in
special applications such as the automo-
tive sector, TSMC announced that it
Governments in the US
and Europe have continued
to lean on TSMC to help
alleviate bottlenecks
would build a new fabrication plant in
Japan.
Construction on the facility, which
will make 22- and 28-nanometre chips
— an older technology than the 5-nano-
metre chips manufactured at TSMC’s
newest plants — will begin next year,
and production is scheduled to start in
late 2024. The global shortage is most
pronounced in 28-nanometre chips.
Wei said the company had received a
“strong commitment” for support of the
project, a statement understood to refer
to subsidies from the Japanese govern-
ment.
TSMC is also building a fabrication
plant in Arizona, for which it expects US
federal and state authorities to grant
subsidies to alleviate the higher opera-
tion costs compared with Taiwan, its
main manufacturing base.
TSMC’s decision to invest in mature
production capacity in Japan deviates
from its traditional focus on the most
cutting-edge manufacturing technol-
ogy. Its global market share, about
60 per cent for made-to-order chips, is
highest in the newest process technol-
ogy, where it exceeds 90 per cent.
Governments in the US and Europe
have continued to lean on TSMC to help
alleviate bottlenecks. Wei said the sup-
ply shortage had been “greatly reduced”
for TSMC’s customers in the third quar-
ter but it might take a few months for
end users, such as vehicle makers, to
feel the impact. “TSMC’s part in the glo-
bal automotive [semiconductor] mar-
ket is only about 15 per cent,” he said.
“We are doing our part, but we cannot
solve the entire industry’s problem.”
See Lex
Friday 15 October 2021 ★ FINANCIAL TIMES 11

COMPANIES & MARKETS

The day in the markets China’s policymaking

What you need to know
process in spotlight
3 Wall Street’s blue-chip benchmark
after Evergrande woes
Wall Street stocks turn higher on upbeat earnings
heads for best day since March
3 Japanese yen nears weakest level Indices rebased
against the dollar since November 2018
3 Brent crude remains at three-year high
as gas shortages show no sign of easing
Nasdaq Composite
S&P 500
102
Logan Wright
Wall Street stock benchmarks were on
track to notch up the biggest daily rise in
Dow Jones Industrial Average
101 Markets Insight
six months yesterday as pessimism about

C
inflation and potential rate rises were
offset by upbeat earnings reports and hina’s crackdowns against from acting? Despite an unprecedented importance to the economy. But
promising economic data. 100 the property sector and its credit expansion lasting more than political analysts argue there is growing
The blue-chip S&P 500 index rose 1.6 technology companies have a decade, China has not faced a evidence that the leadership’s cam-
per cent by lunchtime in New York, jolted financial markets, debilitating financial crisis or a sharp paigns to reshape the economy are con-
heading for its best day since late March. sparking a debate about slowdown in growth, apart from last straining the countercyclical responses
The tech-focused Nasdaq Composite whether or not China is still “investable”. year’s pandemic-related slump. that markets are accustomed to seeing.
added 1.7 per cent while the Dow Jones 99 Longer term bullish investors argue Stability cannot be easily explained As economic policy tools are newly
Industrial Average climbed 1.5 per cent. that Beijing’s commitments to eco- by macroeconomic factors such as infused with political significance,
The moves came after Taiwan nomic growth and market liberalisation China’s high savings rate or the internal technocrats face fresh difficulties
Semiconductor Manufacturing Company, remain unchanged. They maintain nature of its debt nor by political factors reversing course or balancing messages
whose products are used in everything 98 recent actions such as tougher rules on such as the state’s administrative tools from leadership.
from iPhones to cars, posted a better Mon Tue Wed Thu property developer debt loads are or Beijing’s lack of legal constraints. Similarly, these analysts argue the
than expected 14 per cent year-on-year
Source: Refinitiv
efforts to reduce froth in the sector. Rather, Beijing’s obsession with politi- centralisation of authority has
rise in profits for the third quarter. Necessary adjustments in credit risk cal stability has generated a long record weakened some of the balancing forces
Citigroup and Bank of America posted pricing will improve the functioning of of authorities being expected to respond within the party-state system that
quarterly earnings that beat analysts’ for US inflation on Wednesday, Beijing about 1.30 per cent late last month as China’s financial markets over time. to even minor episodes of financial might correct policy mistakes
estimates as both US lenders released revealed yesterday that China’s measure prospects of prolonged inflation, which In contrast, bearish investors argue midstream. As a result, while the
funds from bad loan reserves in a sign of of factory-gate prices showed a 10.7 per erodes the value of fixed income that, under Xi Jinping, China’s outcome of this debate is still uncertain,
confidence in borrowers’ ability to repay. cent surge in September, the fastest rise products, hit government debt prices. fundamental political objectives have How and when Beijing policy overshooting has become a far
Maarten Geerdink, head of European in 25 years after record coal prices Brent crude, the international oil changed and maintaining growth and responds to market more significant risk.
equities at NN Investment Partners, said pushed manufacturers’ costs higher. benchmark, increased 0.5 per cent to liberalising capital markets are less In 2013, China’s central bank tried to
the “good [earnings] reports coming in The CSI 300 share index of mainland $83.62 to remain around a three-year important to the country’s leadership contagion is more vital reduce speculation in the interbank
has given us faith that things won’t be stocks dropped 0.5 per cent while Tokyo’s high as a European natural gas shortage than the goals of “common prosperity”. than original objectives market by staying silent in the face of a
that bad if you do your stockpicking Nikkei 225 Average rose 1.5 per cent as continued with no sign of Russia having They claim this summer’s campaigns, sudden payment default.
correctly”. Sentiment was also lifted on exporters were buoyed by the weak yen, increased supplies, despite supportive including the attacks on tech companies The banking system almost shut
news that the number of Americans filing which is close to its lowest against the comments by President Vladimir Putin and education and tutoring businesses, stress in order to calm markets. But the down in response with short-term rates
for new unemployment benefits fell last dollar since November 2018. last week. imply that China is increasingly unsafe credibility of this expectation depends reaching 20 to 30 per cent.
week, dipping below 300,000 for the first The yield on the 10-year Treasury note The continent-wide Stoxx Europe 600 for investors. upon the policymaking process working The central bank was forced to relent
time since the pandemic began. dipped 3 basis points to 1.52 per cent. index gained 1.2 per cent for its largest As interesting as this debate may be, it as it has in the past. and inject liquidity, a precedent that
Following on from another high reading This benchmark yield has climbed from daily jump in a week. Naomi Rovnick is the wrong one. The most important At some point, waiting too long to facilitated the rapid expansion of the
question now confronting markets respond to the current property market shadow banking system.
concerns Beijing’s policymaking turmoil will generate too much conta- Beijing’s objectives were understand-
Markets update process rather than political objectives gion and several factors will weaken able but the methods used created the
— the means rather than the ends. China’s economy and financial system. opposite effect to what was intended.
Combating contagion from the woes They include the effects of falling Given the political salience of China’s
of Evergrande and other property property prices on household consump- campaign against the property sector, a
US Eurozone Japan UK China Brazil developers requires an effective coun- tion, the impact of falling land sales on similar about-face is hard to envision.
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa tercyclical policy response. But that has local government finances and the use But how and when Beijing responds to
Level 4430.78 1803.80 28550.93 7207.71 3558.28 112970.64 not been forthcoming so far and the rea- of property as collateral for lending. the market contagion is now more
% change on day 1.53 1.16 1.46 0.92 -0.10 -0.43 sons for Beijing’s inaction are unclear. Beijing’s long-term objectives will important than the leadership’s original
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ Are China’s technocrats holding back not matter if the near-term tools of objectives and will determine how
Level 93.924 1.159 113.705 1.368 6.434 5.502 because the current property market economic adjustment falter. Most investable China remains.
% change on day -0.626 0.173 0.300 0.367 -0.171 -0.901 turmoil is part of a controlled effort to economic analysts argue that Beijing
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond reduce risk? Or have new political will be forced to back down on controls Logan Wright is director of China markets
Yield 1.516 -0.191 0.080 0.947 2.954 10.579 factors prevented China’s technocrats targeting the property sector, given its research at Rhodium Group
Basis point change on day -3.650 -6.300 -0.480 -4.700 0.000 1.000
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 478.35 83.84 81.02 1757.65 22.52 4506.50
% change on day 1.32 0.62 0.57 -0.88 -0.13 1.53
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
4560 1840 7360

4480 7200
1800
4400
1760 7040
4320
| | | | | | | | |
4240 || | | | | | | | | | | | | | | | | | | 1720 || | | | | | | | | | | | | | | | | | | 6880 | | | | | | | | | | |

Aug 2021 Oct Aug 2021 Oct Aug 2021 Oct

Biggest movers
% US Eurozone UK
Walgreens Boots Alliance 6.40 Asml Holding 3.85 Bhp 3.70
Freeport-mcmoran 5.34 Christian Dior 3.39 Rio Tinto 3.67
Ups

Apa 5.30 Siemens 3.05 Anglo American 3.43

Unitedhealth 4.41 Arcelormittal 2.97 Glencore 3.37
Paypal Holdings 4.16 Sap 2.85 Int Consolidated Airlines S.a. 3.26
%
Us Ban -3.34 A.p. Moller - Maersk B -4.83 Tesco -1.24
Boeing -1.63 Casino Guichard -1.58 London Stock Exchange -1.21
Downs

Wells Fargo & Co -1.55 Carlsberg -1.42 Admiral -1.03

Eog Resources -1.35 Novozymes -1.06 Flutter Entertainment -0.87
Wynn Resorts -1.18 Klepierre -1.04 Kingfisher -0.73
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

Better than expected results buoyed French advertising company Publicis Recruiter Hays rallied after releasing a
Walgreens Boots Alliance. climbed following what Citi described as trading update that mirrored the robust
For its fiscal fourth quarter, adjusted “very encouraging” third-quarter results. performances that rivals PageGroup and
earnings per share rose 14.6 per cent to Net revenue rose 11.2 per cent on an Robert Walters issued this month.
$4.91, above the mean estimate of $4.76 organic basis to €2.62bn, which was For the three months ending
from analysts polled by Refinitiv. ahead of Citi’s forecast of €2.52bn. September 30, like-for-like fees grew 41
An 8.6 per cent increase in revenue to A shift in client investment towards per cent, which included record net fees
$132.5bn was also ahead of analysts’ digital media, commerce and direct-to- in the USA and China.
forecasts, aided by the pharmacy chain consumer advertising led Publicis to Neil Shah, director of research at
surpassing its vaccination target, which upgrade its guidance for the second time Edison Group, said that Hays’ focus on
resulted in 13.5m Covid-19 jabs in the in 2021. Net revenue for the full year was high-growth sectors such as technology
quarter. expected to grow between 8.5 per cent and life sciences left “it well placed to
Investor appetite for Beyond Meat rose and 9 per cent organically, up from 7 per make the most of [the] post-pandemic
after McDonald’s said it would start cent previously stated. recovery even as the economic
testing a new McPlant, plant-based The issuing of what Kesko described as environment remains unsettled”.
burger co-developed with the group, at a “positive profit warning” pushed the A reduction in guidance led to defence
eight US restaurants for a limited period. Finnish retailer higher. technology group Qinetiq tumbling to its
An upgrade to its outlook lifted For this year, the group forecast lowest level since November 2020.
UnitedHealth, which reported an 11 per comparable operating profit would be in For the full year, it expected that its
cent rise in third-quarter revenue to the range of €740m to €800m, up from underlying operating profit margin would
$72.3bn, beating the consensus estimate €650m to €750m. come in at the lower end of the 11 per cent
of $71.2bn. The upgrade was based on better than to 12 per cent range previously stated.
Net earnings for the healthcare group anticipated sales growth and profit An admission that it was “experiencing
were forecast to land between $17.70 and development, especially in the building technical and supply-chain issues on a
$17.95 per share for the full year, higher and technical trade division, it said. large complex programme” also spooked
than $17.35 to $17.85 range stated in July. Steelmaker ArcelorMittal climbed after investors. If not sorted, such issues could
Shopify rose on news that it was linking being raised to “outperform” from result in a one-off writedown to Qinetiq’s
up with tech giants Microsoft and Oracle “neutral” by Credit Suisse. short-term outlook, it warned.
to allow merchants to access a suite of “We think the current share price Norcros jumped 9 per cent after the
certified apps that would be directly weakness is an attractive entry point as bathroom and kitchen products supplier
integrated into the ecommerce platform. the group is likely to generate $17.5bn in said that underlying operating profit for
In the past, third-party solutions had to [free cash flow] over the next three the 12 months ending March 2022 would
be found for such implementation. years,” said the broker, which highlighted be “significantly ahead of the board’s
Ray Douglas balance sheet improvement. Ray Douglas previous expectations”. Ray Douglas
12 ★ FINANCIAL TIMES Friday 15 October 2021

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-1.43% -0.236% -0.88%

1.53% 1.60% 1.44% 0.92% 1.16% 1.46% 1.32% 0.173% 0.367% 0.300% 1.07%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Sep 15 - - Index All World Sep 15 - Oct 14 Index All World Sep 15 - Oct 14 Index All World Sep 15 - Oct 14 Index All World Sep 15 - Oct 14 Index All World Sep 15 - Oct 14 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
4,480.70 20,823.27 7,207.71 15,616.00 30,447.37 3,153.40
4,430.78 20,553.25 15,462.72
7,016.49
28,550.93 2,988.64

Day 1.53% Month -0.32% Year 26.94% Day 0.99% Month 1.34% Year 26.58% Day 0.92% Month 2.54% Year 21.53% Day 1.40% Month 3.27% Year NaN% Day 1.46% Month -6.21% Year 20.99% Day 1.50% Month -4.45% Year 24.36%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
15,161.53 51,815.17 52,113.04 1,803.80 8,925.00 3,164.86
1,788.40 25,033.21 24,962.59
14,804.17 8,635.40 3,058.61

Day 1.60% Month -1.60% Year 25.74% Day 0.58% Month 0.55% Year 37.02% Day 1.16% Month 0.17% Year 25.86% Day 0.49% Month 1.24% Year 29.81% Day -1.43% Month -4.81% Year 3.42% Day 0.27% Month 3.04% Year 23.37%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
34,814.39 34,871.58 6,685.21 61,305.95
116,180.55 6,583.62 26,277.57
112,970.64 25,762.10 3,621.86 3,558.28 58,723.20

Day 1.44% Month 0.83% Year 22.27% Day -0.43% Month -2.76% Year 13.73% Day 1.33% Month 0.12% Year 35.12% Day 1.23% Month 1.42% Year 34.43% Day -0.10% Month -4.23% Year 5.91% Day 0.94% Month 5.38% Year 50.91%

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 79289.42 78427.93 Cyprus
CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 28864.56 28501.86 Philippines Manila Comp 7183.11 7068.92 Taiwan Weighted Pr 16387.28 16347.99 Cross-Border DJ Global Titans ($) 509.61 502.56
Australia All Ordinaries 7620.20 7571.90 Czech Republic
PX 1362.26 1365.64 FTSE Italia Mid Cap 49474.52 48806.87 Poland Wig 74594.00 74282.98 Thailand Bangkok SET 1640.97 1643.64 Euro Stoxx 50 (Eur) 4150.15 4083.28
S&P/ASX 200 7311.70 7272.50 Denmark
OMXC Copenahgen 20 1737.19 1746.79 FTSE MIB 26277.57 25958.69 Portugal PSI 20 5620.72 5593.36 Turkey BIST 100 1411.75 1413.54 Euronext 100 ID 1310.91 1291.84
S&P/ASX 200 Res 4899.90 4835.30 Egypt
EGX 30 10881.40 10783.92 Japan 2nd Section 7619.37 7625.28 PSI General 4178.41 4166.47 UAE Abu Dhabi General Index 7786.28 7786.89 FTSE 4Good Global ($) 10889.89 10715.88
Austria ATX 3750.52 3724.15 Estonia
OMX Tallinn 1895.20 1884.34 Nikkei 225 28550.93 28140.28 Romania BET Index 12727.40 12745.39 UK FT 30 2713.80 2695.90 FTSE All World ($) 478.35 472.11
Belgium BEL 20 4203.02 4166.50 Finland
OMX Helsinki General 12674.81 12529.16 S&P Topix 150 1695.28 1681.70 Russia Micex Index 4275.54 4243.92 FTSE 100 7207.71 7141.82 FTSE E300 1803.80 1783.06
BEL Mid 10146.15 10039.18 France
CAC 40 6685.21 6597.38 Topix 1986.97 1973.83 RTX 1885.04 1855.11 FTSE 4Good UK 6695.19 6637.04 FTSE Eurotop 100 3391.24 3348.53
Brazil IBovespa 112970.64 113455.92 SBF 120 5227.79 5165.52 Jordan Amman SE 2101.73 2095.63 Saudi-Arabia TADAWUL All Share Index 11624.98 11542.88 FTSE All Share 4107.88 4070.20 FTSE Global 100 ($) 2873.58 2831.13
Canada S&P/TSX 60 1247.89 1235.85
Germany M-DAX 34169.46 33757.26 Kenya NSE 20 1981.44 1992.92 Singapore FTSE Straits Times 3164.86 3156.42 FTSE techMARK 100 7158.80 7156.65 FTSE Gold Min ($) 2019.95 1960.92
S&P/TSX Comp 20823.27 20618.47 TecDAX 3711.42 3649.53 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 387.41 386.63 USA DJ Composite 11505.11 11359.19 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 1041.58 1040.39 XETRA Dax 15462.72 15249.38 Latvia OMX Riga 1270.76 1265.73 Slovenia SBI TOP - - DJ Industrial 34871.58 34377.81 FTSE Multinationals ($) 3062.41 3046.00
Chile S&P/CLX IGPA Gen 20002.11 20075.97
Greece Athens Gen 888.00 884.11 Lithuania OMX Vilnius 925.17 921.85 South Africa FTSE/JSE All Share 66846.17 66012.78 DJ Transport 14884.57 14710.53 FTSE World ($) 858.11 846.24
China FTSE A200 13074.11 13143.50 FTSE/ASE 20 2148.53 2135.63 Luxembourg LuxX 1672.54 1670.69 FTSE/JSE Res 20 64424.40 62856.05 DJ Utilities 897.30 890.14 FTSEurofirst 100 (Eur) 4630.74 4569.13
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 24962.59 25325.09 Malaysia FTSE Bursa KLCI 1592.52 1600.38 FTSE/JSE Top 40 60391.05 59516.75 Nasdaq 100 15029.60 14774.60 FTSEurofirst 80 (Eur) 5741.93 5658.65
Shanghai A 3729.14 3732.79 HS China Enterprise 8849.17 8999.26 Mexico IPC 52113.04 51812.87 South Korea Kospi 2988.64 2944.41 Nasdaq Cmp 14804.17 14571.64 MSCI ACWI Fr ($) 716.73 713.31
Shanghai B 277.52 277.94 HSCC Red Chip 3874.54 3894.37 Morocco MASI 13187.73 13160.56 Kospi 200 389.59 384.10 NYSE Comp 16724.32 16513.16 MSCI All World ($) 3039.01 3024.72
Shanghai Comp 3558.28 3561.76
Hungary Bux 55136.00 54733.73 Netherlands AEX 790.84 777.52 Spain IBEX 35 8925.00 8881.40 S&P 500 4430.78 4363.80 MSCI Europe (Eur) 1837.38 1826.42
Shenzhen A 2510.50 2505.39
India BSE Sensex 61305.95 60737.05 AEX All Share 1092.22 1073.24 Sri Lanka CSE All Share 9621.65 9497.49 Wilshire 5000 46210.50 45531.00 MSCI Pacific ($) 3119.19 3120.87
Shenzhen B 1181.19 1181.00 Nifty 500 15769.25 15631.40 New Zealand NZX 50 13048.49 13025.18 Sweden OMX Stockholm 30 2296.77 2276.95 Venezuela IBC 5638.45 5743.87 S&P Euro (Eur) 1931.73 1906.11
Colombia COLCAP 1261.61 1260.21
Indonesia Jakarta Comp 6626.11 6536.90 Nigeria SE All Share 40896.96 40714.00 OMX Stockholm AS 950.75 940.54 Vietnam VNI 1391.85 1391.91 S&P Europe 350 (Eur) 1857.37 1836.55
Croatia CROBEX 2013.05 2011.29
Ireland ISEQ Overall 8651.95 8726.33 Norway Oslo All Share 1017.37 1006.88 Switzerland SMI Index 11892.52 11814.59 S&P Global 1200 ($) 3369.96 3326.08
Israel Tel Aviv 125 1883.07 1874.19 Pakistan KSE 100 44333.68 43221.78 Stoxx 50 (Eur) 3604.37 3553.41
(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 Oct 14 %Chg %Chg Oct 14 %Chg %Chg Oct 14 %Chg %Chg Oct 14 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 43.2 143.19 2.28 Glencore 286.3 384.80 12.55 Asml Holding 570.8 666.20 24.70 Nippon Yusen Kabushiki Kaisha 888.4 7210.00 -250.00 Antofagasta 1476.00 9.3 1.8 Petropavlovsk 24.00 16.1 - Pharos Energy 21.85 12.5 21.4 Health Care Equip.& Services 7762.26 26.2 0.2
Advanced Micro Devices 34.9 112.05 2.89 Royal Dutch Shell 201.3 1761.00 22.20 Intesa Sanpaolo 346.6 2.52 0.03 Softbank . 678.6 6252.00 58.00 Anglo American 2879.50 8.4 18.6 Darktrace 957.00 12.2 - Record 77.00 12.2 57.1 Industrial Transportation 4404.74 25.6 4.7
Microsoft 32.2 301.02 4.71 Bhp 168.5 1992.00 71.00 Lvmh 307.3 667.20 13.30 Tokyo Electron 677.8 48120.00 2370.00 Barratt Developments 683.20 7.6 0.4 Man 225.40 11.8 58.7 Renewi 759.00 10.0 86.5 Aerospace & Defense 4569.43 24.9 20.4
Amazon.com 31.8 3306.21 21.93 Morrison (wm) Supermarkets 164.5 285.10 -0.20 Sap Se O.n. 289.4 124.96 3.46 Kawasaki Kisen Kaisha, 465.1 4820.00 -240.00 Glencore 384.80 7.4 59.5 Trustpilot 381.00 9.1 - Xaar 177.00 9.7 0.3 Real Estate & Investment Servic 2986.53 22.1 10.8
Nvidia 24.0 215.92 6.53 Bp 161.9 357.70 2.75 Daimler Ag Na O.n. 268.2 83.22 1.66 Mitsui O.s.k.lines, 441.5 6370.00 -330.00 Hargreaves Lansdown 1496.50 7.0 -3.0 Blackrock World Mining Trust 571.00 8.1 9.4 Galliford Try Holdings 192.30 8.6 55.4 Pharmaceuticals & Biotech. 18125.71 21.2 7.6
Facebook 20.9 328.77 4.23 Astrazeneca 152.0 8814.00 -41.00 Royal Dutch Shella 266.8 20.66 0.28 Fast Retailing Co., 420.3 72870.00 1330.00 Polymetal Int 1349.00 5.8 - Centamin 102.20 8.0 - Motorpoint 370.50 8.3 28.4 Beverages 28291.28 19.8 6.2
Alphabet 18.4 2811.87 60.23 Rio Tinto 136.4 5111.00 181.00 Eni 228.6 11.98 0.16 Sumitomo Mitsui Fin,. 360.5 3805.00 -58.00 Ocado 1732.00 5.8 - Volution 502.00 7.7 79.9 Norcros 327.00 8.1 59.6 Electricity 9555.73 16.4 4.2
Bank Of America 17.3 44.53 1.39 Gcp Student Living 120.3 211.50 -0.50 Adidas Ag Na O.n. 214.6 267.00 4.15 Mitsubishi Ufj Fin,. 343.4 649.00 -6.40 Coca-cola Hbc Ag 2535.00 5.7 5.7 Harbour Energy 379.80 7.5 -6.9 Kenmare Resources 460.00 7.5 47.0 Electronic & Electrical Equip. 11450.70 16.3 4.4
Unitedhealth 13.8 421.36 17.81 Anglo American 109.2 2879.50 95.50 Santander 194.5 3.28 0.01 Sony 342.8 12555.00 195.00 Persimmon 2680.00 5.6 -5.3 Aston Martin Lagonda Global Holdings 1800.00 6.8 - Rps 129.00 6.8 77.7 Support Services 11783.27 15.8 8.2
Alphabet 12.9 2823.46 65.46 Lloyds Banking 94.4 48.44 0.68 Enel 194.1 6.94 0.11 Recruit Hldgs Co Ltd 306.2 7241.00 140.00 B&m Eur Value Retail S.a. 590.00 5.4 13.2 Marks And Spencer 183.35 6.7 32.7 Kin And Carta 286.00 6.7 - Real Estate Investment Trusts 3182.53 14.5 3.9
Croda Int 8784.00 5.3 34.4 Safestore Holdings 1151.00 6.7 46.6 Enquest 24.50 5.4 - Chemicals 16241.67 13.8 2.8
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
Johnson Matthey 2752.00 5.3 9.7 Indivior 229.60 6.6 - Robert Walters 790.00 5.3 71.6 Media 9252.63 13.4 7.8
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Walgreens Boots Alliance 50.29 3.03 6.40 Baltic Classifieds 213.00 14.00 7.04 Asml Holding 666.20 24.70 3.85 Nippon Suisan Kaisha, 679.00 50.00 7.95 Bt 140.90 -3.7 4.1 Tui Ag 266.20 -23.3 - Forterra 267.50 -8.9 5.6 Food Producers 6372.01 -15.4 -
Freeport-mcmoran 37.65 1.91 5.34 Harbour Energy 379.80 22.20 6.21 Christian Dior 670.50 22.00 3.39 Tokyo Electron 48120.00 2370.00 5.18 Prudential 1451.50 -3.6 6.0 Diversified Energy 107.40 -13.5 - Rm 218.50 -6.6 5.7 Mining 20785.66 -15.0 -
Apa 25.92 1.31 5.30 Darktrace 957.00 52.50 5.80 Siemens Ag Na O.n. 141.06 4.18 3.05 Screen Holdings Co Ltd 9150.00 380.00 4.33 Entain 2059.00 -3.5 46.7 Qinetiq 285.80 -10.5 - Trifast 128.00 -6.6 - Mobile Telecommunications 2687.11 -11.1 -
Unitedhealth 421.36 17.81 4.41 Trustpilot 381.00 19.00 5.25 Arcelormittal Sa 27.38 0.79 2.97 Toho Z Co., 2927.00 117.00 4.16 Admiral 2976.00 -3.1 0.3 Restaurant 89.90 -6.8 36.1 Hyve 105.30 -5.9 -6.8 Automobiles & Parts 4285.01 -9.6 -
Paypal Holdings 267.03 10.67 4.16 Elementis 135.50 6.50 5.04 Sap Se O.n. 124.96 3.46 2.85 Mitsui Mining And Smelting , 3240.00 120.00 3.85 Tesco 266.00 -2.6 - Rhi Magnesita N.v. 3050.00 -5.5 -15.6 Capital & Regional 58.40 -5.8 - Travel & Leisure 8619.16 -8.5 -0.1
Crh 3416.00 -1.5 8.6 Bridgepoint 474.00 -5.1 - Fisher (james) & Sons 774.00 -5.6 - Household Goods 16799.54 -4.9 -9.6
Downs Downs Downs Downs
Smiths 1438.50 -1.2 -7.0 Cineworld 68.44 -4.9 7.0 Int Personal Finance 128.80 -5.6 56.5 Life Insurance 8021.40 -2.2 -0.1
Us Ban 59.41 -2.05 -3.34 Qinetiq 285.80 -43.40 -13.18 A.p. M__ller - M__rsk B A/s 2226.31 -112.89 -4.83 Mitsui O.s.k.lines, 6370.00 -330.00 -4.93
Informa 562.40 -1.2 0.9 Ao World 149.40 -4.8 - U And I 85.00 -5.1 35.4 Nonlife Insurance 3122.12 -1.5 -1.4
Boeing 218.16 -3.62 -1.63 Domino's Pizza 370.00 -16.00 -4.15 A.p. M__ller - M__rsk A A/s 2099.30 -106.17 -4.81 Kawasaki Kisen Kaisha, 4820.00 -240.00 -4.74
Vodafone 111.12 -1.2 -9.1 Wizz Air Holdings 4583.00 -4.8 -1.1 Newriver Reit 76.90 -4.9 -6.2 General Retailers 2614.73 -1.3 -6.8
Wells Fargo & Co 45.34 -0.71 -1.55 Close Brothers 1490.00 -48.00 -3.12 Hennes & Mauritz Ab, H & M Ser. B 16.41 -0.27 -1.62 Credit Saison Co., 1409.00 -63.00 -4.28
Flutter Entertainment 14325.00 -1.1 -5.2 Ibstock 186.50 -4.3 - Hostelworld 76.00 -4.5 -3.4 Personal Goods 33818.31 -1.1 -8.3
Eog Resources 88.78 -1.22 -1.35 Wood (john) 218.20 -4.50 -2.02 Casino Guichard 21.15 -0.34 -1.58 Tosoh 1898.00 -74.00 -3.75
Pearson 729.00 -1.1 6.0 Carnival 1594.60 -4.0 14.8 Esken 13.50 -4.4 - Construction & Materials 7624.98 -0.7 -7.0
Wynn Resorts 91.35 -1.09 -1.18 C&c 246.00 -5.00 -1.99 Carlsberg B A/s 144.55 -2.08 -1.42 Nippon Yusen Kabushiki Kaisha 7210.00 -250.00 -3.35
Itv 103.95 -1.0 -4.2 Unite 1063.00 -3.7 1.3 Senior 161.70 -4.4 80.7 Food & Drug Retailers 4171.70 -0.6 -5.7
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
Oct 14 Currency Mid Change Mid Change Mid Change Oct 14 Currency Mid Change Mid Change Mid Change Oct 14 Currency Mid Change Mid Change Mid Change Oct 14 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 99.1543 0.0289 114.9149 0.1824 135.6624 0.5202 Indonesia Indonesian Rupiah 14117.5000 -100.0000 16361.4975 -94.5320 19315.4974 -67.8786 Poland Polish Zloty 3.9436 -0.0118 4.5704 -0.0077 5.3955 0.0031 ..Three Month 0.7309 -0.0026 0.8469 -0.0019 - -
Australia Australian Dollar 1.3473 -0.0091 1.5614 -0.0086 1.8433 -0.0059 Israel Israeli Shekel 3.2227 -0.0086 3.7349 -0.0051 4.4093 0.0039 Romania Romanian Leu 4.2709 -0.0055 4.9498 0.0001 5.8434 0.0132 ..One Year 0.7305 -0.0026 0.8461 -0.0019 - -
Bahrain Bahrainin Dinar 0.3769 -0.0001 0.4368 0.0005 0.5157 0.0018 Japan Japanese Yen 113.7050 0.3400 131.7784 0.5644 155.5706 1.0150 Russia Russian Ruble 71.4538 -0.5937 82.8113 -0.5799 97.7627 -0.4629 United States United States Dollar - - 1.1589 0.0015 1.3682 0.0048
Bolivia Bolivian Boliviano 6.9100 - 8.0083 0.0104 9.4542 0.0335 ..One Month 113.7050 0.3400 131.7785 0.5645 155.5706 1.0149 Saudi Arabia Saudi Riyal 3.7508 0.0001 4.3470 0.0058 5.1318 0.0183 ..One Month - - 1.1589 -0.2044 1.3682 0.0049
Brazil Brazilian Real 5.5022 -0.0500 6.3767 -0.0496 7.5280 -0.0415 ..Three Month 113.7049 0.3397 131.7786 0.5647 155.5705 1.0147 Singapore Singapore Dollar 1.3492 -0.0029 1.5637 -0.0013 1.8460 0.0026 ..Three Month - - 1.1587 -0.2044 1.3682 0.0049
Canada Canadian Dollar 1.2364 -0.0086 1.4329 -0.0081 1.6916 -0.0057 ..One Year 113.7045 0.3390 131.7789 0.5654 155.5706 1.0138 South Africa South African Rand 14.8138 -0.0138 17.1684 0.0063 20.2681 0.0531 ..One Year - - 1.1580 -0.2044 1.3678 0.0049
Chile Chilean Peso 821.1150 0.0500 951.6312 1.2915 1123.4454 4.0504 Kenya Kenyan Shilling 110.8500 - 128.4696 0.1665 151.6644 0.5376 South Korea South Korean Won 1186.8500 -7.3500 1375.4999 -6.7241 1623.8424 -4.2644 Vietnam Vietnamese Dong 22758.0000 -1.0000 26375.4118 33.0026 31137.4188 108.9812
China Chinese Yuan 6.4340 -0.0111 7.4567 -0.0031 8.8030 0.0161 Kuwait Kuwaiti Dinar 0.3018 - 0.3498 0.0005 0.4129 0.0015 Sweden Swedish Krona 8.6443 -0.0731 10.0184 -0.0716 11.8272 -0.0577 European Union Euro 0.8628 -0.0011 - - 1.1805 0.0027
Colombia Colombian Peso 3749.0000 29.0000 4344.9037 39.1968 5129.3652 57.7206 Malaysia Malaysian Ringgit 4.1540 -0.0060 4.8143 -0.0007 5.6835 0.0120 Switzerland Swiss Franc 0.9235 -0.0027 1.0703 -0.0017 1.2636 0.0008 ..One Month 0.8628 -0.0011 - - 1.1805 0.0027
Costa Rica Costa Rican Colon 629.0000 1.2100 728.9795 2.3455 860.5947 4.7003 Mexico Mexican Peso 20.6365 -0.0595 23.9167 -0.0379 28.2348 0.0190 Taiwan New Taiwan Dollar 28.1060 -0.0355 32.5734 0.0011 38.4545 0.0879 ..Three Month 0.8626 -0.0011 - - 1.1804 0.0027
Czech Republic Czech Koruna 21.9087 -0.0046 25.3910 0.0276 29.9753 0.1000 New Zealand New Zealand Dollar 1.4229 -0.0144 1.6490 -0.0146 1.9468 -0.0128 Thailand Thai Baht 33.2075 -0.2300 38.4858 -0.2163 45.4343 -0.1525 ..One Year 0.8619 -0.0011 - - 1.1796 0.0027
Denmark Danish Krone 6.4201 -0.0085 7.4406 -0.0001 8.7839 0.0196 Nigeria Nigerian Naira 413.7500 - 479.5156 0.6216 566.0907 2.0066 Tunisia Tunisian Dinar 2.8267 -0.0050 3.2759 -0.0015 3.8674 0.0069
Egypt Egyptian Pound 15.7246 0.0400 18.2240 0.0699 21.5143 0.1308 Norway Norwegian Krone 8.4574 -0.0726 9.8017 -0.0713 11.5714 -0.0580 Turkey Turkish Lira 9.1907 0.1195 10.6516 0.1521 12.5747 0.2075
Hong Kong Hong Kong Dollar 7.7781 -0.0020 9.0145 0.0094 10.6420 0.0351 Pakistan Pakistani Rupee 170.9500 0.1550 198.1225 0.4362 233.8929 1.0404 United Arab Emirates UAE Dirham 3.6732 - 4.2570 0.0055 5.0256 0.0178
Hungary Hungarian Forint 309.6122 -1.7447 358.8250 -1.5542 423.6098 -0.8771 Peru Peruvian Nuevo Sol 3.9615 -0.0683 4.5912 -0.0731 5.4201 -0.0739 United Kingdom Pound Sterling 0.7309 -0.0026 0.8471 -0.0019 - -
India Indian Rupee 75.2582 -0.1168 87.2204 -0.0222 102.9678 0.2057 Philippines Philippine Peso 50.6150 -0.0610 58.6603 0.0054 69.2512 0.1623 ..One Month 0.7309 -0.0026 0.8470 -0.0019 - -
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 Oct 13 Oct 12 Oct 11 Oct 08 Oct 07 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 2713.80 2695.90 2711.00 2717.30 2715.50 0.00 2870.10
Oil & Gas Producers 2450.9037.50 Real Est Invest & Tr 15.67 Equity Invest Instr 7.06 FTSE 100 Price Change FTSE 100 Price Change
Oct 14 chge% Index Oct 13 Oct 12 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00
Oil & Gas 3.93 2.7436.42 Pharmace & Biotech 14.90 General Retailers 6.25 3I Group PLC 1305 17.50 Kingfisher PLC 328.00 -2.40
FTSE 100 (101) 7207.71 0.92 6632.07 7141.82 7130.23 5935.06 3.42 1.97 14.85 214.66 7104.72 P/E Ratio net - - - - - 0.00 19.44
Aerospace & Defense 14.2627.10 Basic Materials 13.81 Fixed Line Telecomms 5.22 Abrdn PLC 258.50 3.70 Land Securities Group PLC 698.00 -0.20
FTSE 250 (250) 22860.39 0.99 21034.64 22635.27 22468.90 17950.41 1.87 3.00 17.76 367.86 18445.31 FT 30 hourly changes Beverages 24.64 Health Care 13.07 Industrial Transport 4.65 Admiral Group PLC 2976 -31.00 Legal & General Group PLC 281.50 -0.30
FTSE 250 ex Inv Co (183) 23892.29 0.99 21984.12 23658.45 23427.95 18071.65 1.80 0.69 80.88 332.96 19658.93 8 9 10 11 12 13 14 15 16 High Low Support Services 23.30 Construct & Material 12.95 Financial Services 2.89 Anglo American PLC 2879.5 95.50 Lloyds Banking Group PLC 48.44 0.68
FTSE 350 (351) 4125.65 0.94 3796.15 4087.42 4076.68 3368.39 3.15 2.08 15.29 112.80 8083.12 2695.9 2696.5 2705.3 2706.5 2711.9 2711.7 2710.4 2710.7 2712.8 2716.6 2679.0 Industrial Metals & 22.90 Mining 12.70 Oil & Gas Producers 29.65 Antofagasta PLC 1476 44.00 London Stock Exchange Group PLC 7834 -96.00
FTSE 350 ex Investment Trusts (282) 4024.36 0.92 3702.95 3987.50 3976.75 3276.38 3.23 1.72 18.07 83.47 4072.06 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Tech Hardware & Eq 20.71 NON FINANCIALS Index 12.41 Consumer Goods -1.03 Ashtead Group PLC 5818 104.00 M&G PLC 200.20 2.20
FTSE 350 Higher Yield (114) 3243.86 0.72 2984.79 3220.64 3221.92 2495.60 4.73 1.43 14.83 123.84 7064.09 Banks 20.65 Food & Drug Retailer 12.35 Tobacco -3.13 Associated British Foods PLC 1804 -6.00 Meggitt PLC 751.20 3.00
FTSE 350 Lower Yield (237) 4771.37 1.17 4390.31 4716.39 4688.63 4122.65 1.46 4.33 15.82 78.43 5744.25
FTSE SmallCap (254) 7406.28 0.66 6814.78 7357.80 7340.37 5235.15 2.39 4.21 9.94 136.30 12005.60 FX: EFFECTIVE INDICES Chemicals
FTSE SmallCap Index
19.43
19.16
FTSE All{HY-}Share Index
FTSE 250 Index
11.82
11.58
Nonlife Insurance
Telecommunications
-3.49
-3.57
Astrazeneca PLC 8814 -41.00 Melrose Industries PLC 164.75 -0.20
Auto Trader Group PLC 595.80 5.80 Mondi PLC 1795 28.00
FTSE SmallCap ex Inv Co (134) 6289.28 0.57 5786.98 6253.70 6235.15 3900.07 1.84 0.91 59.44 81.31 10622.65
Oct 13 Oct 12 Mnth Ago Oct 14 Oct 13 Mnth Ago Technology 18.60 FTSE 100 Index 11.57 Health Care Eq & Srv -5.46 Avast PLC 561.40 -0.60 Morrison (Wm) Supermarkets PLC 285.10 -0.20
FTSE All-Share (605) 4107.88 0.93 3779.81 4070.20 4059.54 3337.64 3.12 2.13 15.02 111.06 8127.81 Software & Comp Serv 18.40 Consumer Services 11.32 Automobiles & Parts -7.06 Aveva Group PLC 3645 34.00 National Grid PLC 901.40 -0.60
FTSE All-Share ex Inv Co (416) 3966.84 0.92 3650.02 3930.77 3920.15 3213.27 3.20 1.71 18.30 81.72 4075.65 UK 81.88 81.84 82.01 Media 18.24 Life Insurance 11.31 Mobile Telecomms -7.09 Aviva PLC 398.00 2.40 Natwest Group PLC 229.50 1.20
FTSE All-Share ex Multinationals (534) 1315.43 0.73 1004.20 1305.84 1299.18 1050.14 2.54 3.24 12.16 28.20 2694.03 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Industrials 17.85 Financials 11.03 Leisure Goods -7.48 B&M European Value Retail S.A. 590.00 4.40 Next PLC 7808 166.00
FTSE Fledgling (85) 13447.13 0.25 12373.17 13414.10 13358.88 8919.17 2.12 5.53 8.54 218.78 28173.55 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Industrial Eng 16.99 Gas Water & Multi 9.03 Household Goods & Ho -7.69 Bae Systems PLC 597.00 4.40 Ocado Group PLC 1732 15.00
FTSE Fledgling ex Inv Co (36) 18511.74 0.89 17033.30 18348.20 18301.15 94.12 1.40 -7.79 -9.15 208.88 37752.20 Real Est Invest & Se 16.70 Utilities 8.75 Food Producers -7.82 Barclays PLC 194.40 1.48 Pearson PLC 729.00 -2.00
FTSE All-Small (339) 5157.93 0.64 4745.99 5125.34 5112.70 3632.79 2.37 4.28 9.85 94.29 10725.75 Electronic & Elec Eq 15.94 Travel & Leisure 8.61 Personal Goods -9.83 Barratt Developments PLC 683.20 1.00 Pershing Square Holdings LTD 2825 45.00
FTSE All-Small ex Inv Co (170) 4727.48 0.58 4349.92 4700.17 4686.31 87.77 1.83 0.66 82.63 60.91 10113.73 Electricity 7.86 Oil Equipment & Serv -22.95 Berkeley Group Holdings (The) PLC 4300 22.00 Persimmon PLC 2680 23.00
FTSE AIM All-Share (747) 1225.04 1.07 1127.20 1212.06 1206.23 981.34 0.84 1.34 88.89 8.36 1416.42
Bhp Group PLC 1992 71.00 Phoenix Group Holdings PLC 660.00 9.60
FTSE All-Share Technology (22) 2303.81 1.53 2170.99 2269.01 2232.70 2243.51 1.48 0.83 81.52 19.59 3268.37
FTSE All-Share Telecommunications (7) 1747.09 0.53 1646.37 1737.82 1756.67 1613.15 4.92 0.65 31.36 40.79 2463.75 FTSE GLOBAL EQUITY INDEX SERIES BP PLC
British American Tobacco PLC
357.70
2593
2.75
23.50
Polymetal International PLC
Prudential PLC
1349
1451.5
30.00
16.00
FTSE All-Share Health Care (13) 12762.81 -0.09 12026.99 12774.52 12796.46 12125.12 3.16 0.69 45.71 184.60 11455.07 Oct 14 No of US $ Day Mth YTD Total
YTD Gr Div Oct 14 No of US $ Day Mth YTD Total YTD Gr Div British Land Company PLC 492.30 1.00 Reckitt Benckiser Group PLC 5488 25.00
FTSE All-Share Financials (253) 4884.30 0.79 4602.70 4846.12 4859.63 3731.50 2.68 5.34 6.99 91.62 5232.97 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Bt Group PLC 140.90 -0.50 Relx PLC 2192 26.00
FTSE All-Share Real Estate (56) 1147.83 0.83 1131.54 1138.42 1128.58 895.99 2.57 0.30 131.35 16.65 1164.40
FTSE Global All Cap 9385 807.84 0.5 -2.8 11.0
12.7 1264.38
1.8 Oil Equipment & Services 26 251.97 0.5 0.5 33.1 443.96 38.2 4.5 Bunzl PLC 2504 -10.00 Rentokil Initial PLC 594.20 1.00
FTSE All-Share Consumer Discretionary (90) 5463.98 0.65 5148.96 5428.87 5370.72 4204.34 1.44 -0.35 -198.34 63.19 5655.44
FTSE Global All Cap 9385 807.84 0.5 -2.8 11.0
12.7 1264.38
1.8 Basic Materials 370 654.99 0.5 0.5 7.4 1152.35 11.2 3.8 Burberry Group PLC 1908.5 49.00 Rightmove PLC 691.60 7.00
FTSE All-Share Consumer Staples (27)18586.16 0.59 17514.60 18477.18 18360.73 18665.88 4.00 1.18 21.20 486.29 16318.65
FTSE Global Large Cap 1796 718.11 0.4 -3.1 10.3
12.0 1158.20
1.8 Chemicals 172 943.59 0.7 0.7 8.4 1617.98 10.5 2.1 Coca-Cola Hbc AG 2535 21.00 Rio Tinto PLC 5111 181.00
FTSE All-Share Industrials (88) 7043.75 1.04 6637.65 6971.02 6897.59 5516.39 1.72 2.55 22.77 79.44 7950.41
FTSE Global Mid Cap 2303 1041.07 0.6 -1.8 13.6
15.2 1532.60
1.8 Forestry & Paper 21 298.76 0.4 0.4 -5.5 581.77 -3.3 2.8 Compass Group PLC 1490.5 4.50 Rolls-Royce Holdings PLC 143.44 0.12
FTSE All-Share Basic Materials (25) 8170.06 3.15 7699.03 7920.53 7940.41 6128.24 6.38 2.41 6.51 365.27 10460.08
FTSE Global Small Cap 5286 1127.32 0.6 -1.9 12.0
13.4 1590.91
1.5 Industrial Metals & Mining 97 540.75 0.0 0.0 15.4 976.46 21.4 5.5 Crh PLC 3416 46.00 Royal Dutch Shell PLC 1761 22.20
FTSE All-Share Energy (14) 6414.55 1.12 6044.73 6343.24 6381.09 3690.40 3.30 0.75 40.52 111.66 7436.93
FTSE All-World 4099 472.11 0.5 -2.9 10.9
12.6 782.31
1.8 Mining 80 902.83 0.4 0.4 2.5 1654.74 8.3 5.9 Croda International PLC 8784 50.00 Royal Dutch Shell PLC 1744.8 23.80
FTSE All-Share Utilities (10) 7776.30 0.19 7327.97 7761.66 7694.22 7229.86 4.59 1.67 13.06 236.94 11253.24
FTSE World 2659 846.24 0.5 -3.1 11.9
13.6 1881.95
1.8 Industrials 757 573.81 0.5 0.5 9.5 895.63 11.0 1.5 Dcc PLC 6076 -18.00 Royal Mail PLC 416.60 5.10
FTSE All-Share Software and Computer Services (20) 2468.50 1.53 2326.18 2431.22 2392.13 2427.27 1.48 0.82 82.36 20.60 3705.09
FTSE Global All Cap ex UNITED KINGDOM In 9091 854.56 0.5 -2.8 11.0
12.7 1312.68
1.7 Construction & Materials 145 687.82 0.5 0.5 11.7 1131.27 13.5 1.9 Diageo PLC 3639 43.00 Sage Group PLC 718.00 4.20
FTSE All-Share Technology Hardware and Equipment (2) 7106.25 1.55 6696.55 6997.64 6900.06 4725.95 1.44 1.08 63.98 88.39 9013.21
FTSE Global All Cap ex USA 7556 592.98 0.6 -3.8 5.2
7.5 1019.67
2.4 Aerospace & Defense 35 833.81 -0.2 -0.2 13.7 1278.67 14.9 1.3 Entain PLC 2059 -7.00 Sainsbury (J) PLC 295.70 0.90
FTSE All-Share Telecommunications Equipment (2) 672.45 0.13 633.69 671.59 655.87 711.36 1.34 2.69 27.78 5.80 941.19
FTSE Global All Cap ex JAPAN 7991 840.39 0.5 -2.4 11.9
13.5 1327.20
1.7 General Industrials 72 271.26 0.5 0.5 7.2 466.52 9.1 2.1 Evraz PLC 595.00 4.80 Schroders PLC 3570 54.00
FTSE All-Share Telecommunications Service Providers (5) 2683.04 0.55 2528.36 2668.31 2701.44 2459.60 5.09 0.62 31.54 64.75 3440.13
FTSE Global All Cap ex Eurozone 8724 851.79 0.5 -2.6 11.2
12.8 1305.06
1.7 Electronic & Electrical Equipment 143 722.08 0.2 0.2 7.9 1020.71 9.2 1.2 Experian PLC 3220 52.00 Scottish Mortgage Investment Trust PLC 1415.5 22.50
FTSE All-Share Health Care Providers (3) 8084.90 1.61 7618.78 7956.93 8043.32 5705.75 0.13 53.81 14.50 6.62 7463.95
FTSE Developed 2208 776.94 0.5 -3.0 12.3
13.9 1225.65
1.7 Industrial Engineering 147 1083.34 0.5 0.5 5.7 1684.28 7.1 1.6 Ferguson PLC 10425 125.00 Segro PLC 1252.5 24.50
FTSE All-Share Medical Equipment and Services (2) 5990.68 1.50 5645.29 5902.31 5861.11 6672.46 2.12 1.07 44.00 126.98 5639.12
FTSE Developed All Cap 5839 815.26 0.5 -2.8 12.3
13.9 1267.46
1.7 Industrial Transportation 126 1008.11 0.9 0.9 9.9 1585.35 11.5 1.7 Flutter Entertainment PLC 14325 -125.00 Severn Trent PLC 2675 9.00
FTSE All-Share Pharmaceuticals and Biotechnology (8)18061.56 -0.21 17020.25 18099.35 18139.07 17065.87 3.25 0.66 46.73 255.46 14587.04
FTSE Developed Large Cap 884 725.57 0.4 -3.2 11.9
13.6 1165.09
1.7 Support Services 89 716.56 0.8 0.8 11.4 1050.72 12.4 1.0 Fresnillo PLC 846.20 12.80 Smith & Nephew PLC 1274 21.00
FTSE All-Share Banks (11) 2977.72 0.69 2806.04 2957.20 3000.05 1854.41 2.65 5.45 6.94 44.86 2528.81
FTSE Developed Europe Large Cap 237 430.55 0.8 -2.9 9.6
12.3 825.03
2.5 Consumer Goods 539 641.37 0.8 0.8 4.9 1053.14 6.6 1.9 Glaxosmithkline PLC 1401.8 0.80 Smith (Ds) PLC 387.50 6.70
FTSE All-Share Finance and Credit Services (7)10956.35 -1.04 10324.67 11071.49 10881.53 8833.50 1.30 1.56 49.26 126.28 14443.18
FTSE Developed Europe Mid Cap 352 755.84 1.1 -4.7 8.2
10.4 1261.62
2.2 Automobiles & Parts 127 699.14 0.5 0.5 14.2 1111.40 15.3 1.0 Glencore PLC 384.80 12.55 Smiths Group PLC 1438.5 7.50
FTSE All-Share Investment Banking and Brokerage Services (33)10430.61 1.35 9829.25 10291.39 10124.18 8817.63 3.75 2.40 11.10 279.53 13949.65
FTSE Dev Europe Small Cap 724 1089.84 1.3 -4.4 13.1
15.0 1747.09
1.9 Beverages 68 755.73 0.7 0.7 2.3 1252.61 4.0 2.2 Halma PLC 2883 48.00 Smurfit Kappa Group PLC 3856 46.00
FTSE All-Share Closed End Investments (189)13813.85 1.04 13017.43 13671.66 13651.43 11685.16 2.07 11.14 4.35 166.48 8407.61
FTSE North America Large Cap 254 959.91 0.4 -2.6 15.6
16.9 1417.19
1.4 Food Producers 132 735.52 0.8 0.8 2.5 1237.18 4.6 2.3 Hargreaves Lansdown PLC 1496.5 13.50 Spirax-Sarco Engineering PLC 14935 135.00
FTSE All-Share Life Insurance (6) 8154.63 0.78 7684.48 8091.30 8187.59 6051.46 3.28 2.27 13.40 267.54 9572.03
FTSE North America Mid Cap 414 1246.54 0.5 0.0 17.6
18.9 1697.92
1.4 Household Goods & Home Construction 61 584.84 0.5 0.5 1.5 957.15 3.5 2.5 Hikma Pharmaceuticals PLC 2375 27.00 Sse PLC 1589 -0.50
FTSE All-Share Nonlife Insurance (7) 3551.86 0.55 3347.09 3532.58 3526.15 3123.79 3.99 1.69 14.80 125.32 7278.53
FTSE North America Small Cap 1341 1302.75 0.5 -0.2 13.9
14.8 1706.91
1.2 Leisure Goods 47 306.23 0.1 0.1 -7.2 427.14 -6.2 1.2 HSBC Holdings PLC 426.00 1.45 St. James's Place PLC 1502 20.50
FTSE All-Share Real Estate Investment and Services (15) 2915.00 1.23 2746.94 2879.50 2824.02 2294.27 1.67 2.55 23.39 34.45 8516.51
FTSE North America 668 627.70 0.4 -2.1 16.0
17.3 1.4 Personal Goods
947.04 89 1093.62 1.6 1.6 3.8 1650.40 4.9 1.4 Imperial Brands PLC 1561 11.50 Standard Chartered PLC 485.40 7.60
FTSE All-Share Real Estate Investment Trusts (41) 2841.88 0.73 2678.03 2821.24 2803.95 2211.99 2.78 -0.03-1389.47 41.86 4142.20
FTSE Developed ex North America 1540 307.80 0.6 -4.8 5.0
7.4 570.42
2.4 Tobacco 15 968.88 1.8 1.8 6.7 2575.17 11.5 6.3 Informa PLC 562.40 3.00 Taylor Wimpey PLC 155.30 -
FTSE All-Share Automobiles and Parts (2) 4306.97 1.48 4058.66 4244.03 4246.65 2821.18 1.10 -7.85 -11.59 10.66 4448.15
FTSE Japan Large Cap 172 452.53 -0.3 -8.5 -0.2
1.7 2.1 Health Care
647.85 338 733.93 0.3 0.3 7.0 1147.78 8.5 1.7 Intercontinental Hotels Group PLC 4970 30.00 Tesco PLC 266.00 -3.35
FTSE All-Share Consumer Services (3) 2480.96 0.30 2337.93 2473.58 2451.85 2083.71 0.01 -62.70 -114.12 0.13 3105.24
FTSE Japan Mid Cap 338 645.22 0.1 -9.0 0.1
2.1 876.53
2.2 Health Care Equipment & Services 129 1526.99 0.1 0.1 9.7 1853.85 10.5 0.9 Intermediate Capital Group PLC 2106 63.00 Unilever PLC 3880 14.50
FTSE All-Share Household Goods and Home Construction (13)14127.08 0.37 13312.60 14074.86 13572.00 11581.26 5.13 1.57 12.39 417.85 11777.99
FTSE Global wi JAPAN Small Cap 884 710.92 -0.1 -9.1 -0.3
1.7 1000.60
2.3 Pharmaceuticals & Biotechnology 209 466.49 0.5 0.5 4.9 779.57 7.0 2.3 International Consolidated Airlines Group S.A. 177.16 5.60 United Utilities Group PLC 999.00 1.60
FTSE All-Share Leisure Goods (2) 26013.72 1.23 24513.94 25698.80 25369.63 27390.14 1.49 2.59 25.85 388.85 27733.18
FTSE Japan 510 186.73 -0.2 -8.6 -0.2
1.7 299.28
2.1 Consumer Services 454 705.20 0.5 0.5 2.2 994.88 2.9 0.9 Intertek Group PLC 5012 51.00 Vodafone Group PLC 111.12 0.98
FTSE All-Share Personal Goods (5) 29331.96 1.78 27640.87 28818.39 28124.93 22017.12 1.39 1.24 57.95 419.78 22477.01
FTSE Asia Pacific Large Cap ex Japan 957 843.22 0.4 -3.6 -3.6
-1.7 2.2 Food & Drug Retailers
1488.63 70 326.28 -0.3 -0.3 9.2 505.45 11.5 2.4 Itv PLC 103.95 0.70 Whitbread PLC 3313 79.00
FTSE All-Share Media (11) 9532.76 0.86 8983.16 9451.10 9444.13 7008.97 1.80 1.04 53.50 177.00 6551.78
FTSE Asia Pacific Mid Cap ex Japan 919 1132.10 0.7 -2.0 10.2
12.5 1922.23
2.5 General Retailers 157 1257.52 0.8 0.8 -0.7 1701.81 -0.2 0.7 Jd Sports Fashion PLC 1038.5 4.50 Wpp PLC 986.20 5.20
FTSE All-Share Retailers (22) 2667.57 0.70 2513.77 2649.03 2598.44 2097.43 1.23 4.02 20.29 29.59 3375.72
FTSE Asia Pacific Small Cap ex Japan 2044 694.76 0.3 -4.1 6.9
8.9 2.1 Media
1150.62 84 493.38 0.7 0.7 5.1 700.75 5.9 0.8 Johnson Matthey PLC 2752 46.00
FTSE All-Share Travel and Leisure (32) 8486.01 0.46 7996.76 8447.42 8426.46 6232.26 0.10 -100.3 -10.33 11.71 8720.81
FTSE Asia Pacific Ex Japan 1876 667.75 0.5 -3.4 -2.2
-0.4 2.2 Travel & Leisure
1252.54 143 527.83 -0.2 -0.2 6.0 761.22 6.7 0.8
8
FTSE Emerging All Cap 3546 898.64 0.4 -2.6 1.0
3.2 2.4 Telecommunication
1511.33 88 149.25 0.0 0.0 -3.1 337.35 0.5 4.3
FTSE All-Share Beverages (6) 28405.16 1.11 26767.50 28093.61 27828.71 21038.82 2.01 1.51 32.90 353.51 22298.82
FTSE All-Share Food Producers (10) 6567.75 0.23 6189.09 6552.74 6485.31 6274.39 1.78 3.04 18.50 88.48 6181.53
FTSE Emerging Large Cap 912 847.02 0.4 -2.4 -1.3
0.9 2.3 Fixed Line Telecommuniations
1432.92 35 112.26 -0.2 -0.2 -3.5 288.94 1.6 5.9 UK STOCK MARKET TRADING DATA
FTSE Emerging Mid Cap 979 1166.46 0.6 -2.2 11.4
14.3 2.9 Mobile Telecommunications
1967.89 53 180.00 0.2 0.2 -2.2 352.24 0.3 3.4
FTSE All-Share Tobacco (2) 27881.85 0.88 26274.36 27638.57 27332.20 27694.77 8.38 1.44 8.29 1542.74 24274.02 Oct 14 Oct 13 Oct 12 Oct 11 Oct 08 Yr Ago
FTSE Emerging Small Cap 1655 928.46 -0.1 -4.1 8.9
11.3 2.3 Utilities
1497.08 197 319.23 1.1 1.1 -0.5 720.78 2.4 3.4
FTSE All-Share Construction and Materials (15) 8179.84 1.31 7708.25 8074.12 8064.45 6698.98 2.17 0.59 78.74 63.38 9657.93 Order Book Turnover (m) 122.14 309.65 50.50 71.00 71.00 71.00
FTSE Emerging Europe 87 467.71 -0.8 4.7 26.3
32.2 4.5 Electricity
929.05 141 359.61 1.2 1.2 -0.4 800.45 2.4 3.4
FTSE All-Share Aerospace and Defense (9) 4850.28 -0.12 4570.64 4856.24 4854.47 3220.12 1.92 8.60 6.04 60.09 5750.76 Order Book Bargains 907978.00 886761.00 878661.00 850814.00 850814.00 850814.00
FTSE Latin America All Cap 251 748.53 0.6 -8.1 -8.9
-5.1 4.9 Gas Water & Multiutilities
1336.90 56 318.81 0.9 0.9 -0.6 743.11 2.3 3.4
FTSE All-Share Electronic and Electrical Equipment (10)13526.09 1.61 12746.26 13312.38 13135.36 10976.12 1.18 2.17 39.07 141.80 13144.87 Order Book Shares Traded (m) 1398.00 1428.00 1245.00 1248.00 1248.00 1248.00
FTSE Middle East and Africa All Cap 333 789.08 0.7 1.4 20.8
23.9 2.6 Financials
1398.80 871 295.07 -0.2 -0.2 16.9 548.53 19.6 2.5
FTSE All-Share General Industrials (9) 5431.55 0.73 5118.40 5392.30 5319.31 4767.67 2.71 1.02 36.06 108.66 6938.75 Total Equity Turnover (£m) 5050.75 5022.22 3769.33 4030.35 4030.35 4030.35
FTSE Global wi UNITED KINGDOM All Cap In 294 350.27 0.5 -1.6 10.5
13.7 3.3 Banks
688.88 267 228.12 -0.7 -0.7 23.7 467.94 27.2 3.0
FTSE All-Share Industrial Engineering (5)19102.80 1.20 18001.46 18876.81 18597.40 15521.12 1.00 2.51 39.76 192.50 25240.95 Total Mkt Bargains 1115705.00 1087902.00 1088150.00 1047557.00 1047557.00 1047557.00
FTSE Global wi USA All Cap 1829 1084.88 0.4 -2.0 15.5
16.7 1.3 Nonlife Insurance
1544.68 72 338.80 -0.3 -0.3 13.2 547.98 16.5 3.0
FTSE All-Share Industrial Support Services (32)11339.61 1.22 10685.84 11203.46 11074.81 9545.56 1.51 1.54 42.88 108.45 12755.80 Total Shares Traded (m) 4320.00 4700.00 4180.00 4344.00 4344.00 4344.00
FTSE Europe All Cap 1478 518.50 0.9 -3.1 10.0
12.7 2.5 Life Insurance
954.42 54 247.72 -0.5 -0.5 6.6 458.22 9.8 3.3
FTSE All-Share Industrial Transportation (8) 6598.27 1.66 6217.85 6490.31 6338.75 3550.72 1.09 2.93 31.31 61.48 6767.96 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
FTSE Eurozone All Cap 661 505.57 0.8 -4.3 9.1
11.4 2.1 Financial Services
924.32 215 484.56 0.0 0.0 15.4 722.05 16.7 1.4
FTSE All-Share Industrial Materials (1)18103.38 0.00 648.10 18103.38 17878.34 18528.06 1.76 2.64 21.55 318.56 22401.67 (c) Market closed.
FTSE EDHEC-Risk Efficient All-World 4099 530.59 0.5 -2.0 12.4
14.3 2.0 Technology
813.27 348 609.75 0.9 0.9 17.2 787.34 17.9 0.8
FTSE All-Share Industrial Metals and Mining (11) 6786.89 3.42 6395.60 6562.24 6606.49 4829.79 7.06 2.43 5.83 326.35 9735.35
FTSE EDHEC-Risk Efficient Developed Europe 589 405.74 0.9 -3.8 8.7
10.9 2.2 Software & Computer Services
691.01 187 1034.37 1.4 1.4 23.1 1243.19 23.6 0.4
FTSE All-Share Precious Metals and Mining (6)19900.34 2.48 18753.01 19419.62 19148.00 28329.79 4.09 2.15 11.34 1039.94 13556.38
Oil & Gas 137 341.50 0.1 11.9 32.3
37.1 3.8 Technology Hardware & Equipment
661.61 161 469.44 0.2 0.2 10.1 649.18 11.2 1.2
FTSE All-Share Chemicals (7) 18034.56 1.22 16994.80 17816.47 17379.89 14230.80 1.79 1.98 28.22 261.18 17629.97 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Oil & Gas Producers 96 327.91 -0.2 13.2 35.7
40.8 3.8 Alternative Energy
649.99 15 225.94 3.8 3.8 -15.9 322.87 -15.4 0.5
FTSE All-Share Oil. Gas and Coal (14) 6225.26 1.12 5866.35 6156.04 6192.78 3581.49 3.30 0.75 40.52 108.38 7485.09 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Real Estate Investment & Services 162 350.50 0.9 0.9 -2.3 662.20 0.1 2.8
FTSE Sector Indices Real Estate Investment Trusts 101 537.69 0.8 0.8 18.3 1213.30 21.0 3.0 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Non Financials (352) 4926.30 0.97 4532.86 4879.14 4858.56 84.39 3.25 1.35 22.70 100.28 8573.32 FTSE Global Large Cap 1796 718.11 0.4 0.4 10.3 1158.20 12.0 1.8 liable for any loss arising from the reliance on or use of the listed information.
The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day mid cap) - please see https://research.ftserussell.com/Products/indices/Home/indexfiltergeis?indexName=GEISAC&currency=USD&rtn=CAP&segment=global-developed–emerging. The trade names Fundamental Index®
FTSE 100 7097.99 7101.12 7115.10 7115.62 7125.51 7120.86 7126.97 7133.19 7147.99 7152.72 7088.12 and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Data provided by Morningstar | www.morningstar.co.uk
FTSE 250 22415.02 22559.48 22675.50 22679.25 22681.86 22626.32 22594.64 22634.04 22644.28 22710.45 22395.38 Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark
FTSE SmallCap 7337.20 7350.75 7355.63 7356.23 7357.40 7354.49 7352.22 7352.02 7351.86 7360.12 7331.20 of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE,
FTSE All-Share 4043.20 4049.27 4059.25 4059.61 4064.21 4060.34 4062.11 4066.13 4073.16 4076.52 4040.02 please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.
Time of FTSE 100 Day's high:15:15:45 Day's Low07:20:45 FTSE 100 2010/11 High: 7220.14(11/08/2021) Low: 6407.46(29/01/2021)
Time of FTSE All-Share Day's high:15:22:00 Day's Low07:07:00 FTSE 100 2010/11 High: 4144.51(06/09/2021) Low: 3641.93(29/01/2021)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Baillie Gifford Japan Trust (The) Pre 162.382 48.480 172.860 50.940 0.00000 4.50000 - 0.000 4.500 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Hurricane Energy Int 124.501 81.871 42.854 258.478L 0.022 0.155L 0.00000 0.00000 - 0.000 0.000 10/11 20.00 TMTA TMT Acquisition PLC 23.00 0.43 24.00 22.93 632.5
There are currently no rights offers by any companies listed on the LSE. TR European Growth Trust Pre 329.901 14.256 655.610 26.990 0.00000 14.20000 - 8.200 22.000 10/08 181.00 AIM MEX Tortilla Mexican Grill PLC 193.00 -5.00 200.00 190.00 7462.2
10/08 150.00 WPS WAG Payment Solutions PLC 140.00 -1.00 150.00 127.82 96447.6
09/30 10.00 BAY Bay Capital PLC 16.50 0.00 20.50 15.00 1155.0
09/30 122.00 AIM MTEC Made Tech Group PLC 139.00 1.70 150.00 130.00 20582.9
09/29 228.00 AIM PEEL Peel Hunt Ltd 231.00 0.27 235.00 226.00 28368.4
09/28 350.00 PHLL Petershill Partners PLC 318.00 15.00 359.35 294.40 367829.3
09/27 50.00 ALK Alkemy Capital Investments PLC 150.00 0.00 200.00 50.00 900.0
09/15 3.00 NZI Net Zero Infrastructure PLC 3.65 0.34 5.35 3.00 221.6

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.
Friday 15 October 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 (€) CntJpRwy 16965 -15.00 18455 12545 0.78 -20.90 30735.59 Nordea Bk 106.96 1.86 114.64 64.90 0.66 12.85 50111.68 BlackRock 883.45 15.64 959.89 587.90 1.74 25.09 134457.37 MondelezInt 60.58 0.62 65.60 52.51 2.06 20.25 84679.78
ANZ 27.58 -0.20 29.64 18.52 2.21 16.38 58279.26 Nokia 5.16 0.07 5.38 2.70 - -15.16 33966.61 Denso 7647 58.00 8158 4724 1.86 19.18 52991.65 SEB 126.95 0.65 127.60 75.56 3.23 12.29 31868.66 Boeing 218.16 -3.62 278.57 141.58 - -14.23 127874.9 Monsanto 9.77 0.01 10.00 9.51 - - 244.25
BHPBilltn 37.80 0.21 54.55 33.73 5.53 12.70 82775.65 SampoA 45.67 0.38 45.85 31.73 3.77 42.51 29330.84 EastJpRwy 7226 -26.00 8626 5446 1.40 -5.38 24017.76 SvnskaHn 104.20 0.60 104.95 71.70 3.94 12.27 23442.58 Booking Holdings 2510.72 48.19 2540 1589 - 251.24 103089.76 MorganStly 100.37 1.80 105.95 46.55 1.38 13.43 183131.19
CmwBkAu 101.91 -1.31 109.03 66.04 3.04 26.65 129076.55 France (€) Fanuc 23220 520.00 29700 20070 1.28 35.06 41232.46 Swedbank 183.94 1.36 185.22 138.10 3.95 10.16 24087.54 BrisMySq 57.99 0.92 69.75 56.66 3.28 -26.02 128853.48 Netflix 632.32 2.56 646.84 463.41 - 66.16 279860.02
CSL 296.90 2.85 320.42 242.00 0.94 42.71 100418.53 Airbus Grpe 113.36 1.02 121.00 59.28 - 29.13 103266.29 FastRetail 72870 1330 110500 69320 0.66 49.32 67979.31 Telia Co 36.48 0.06 39.97 33.45 5.21 -11.46 17256.28 CapOne 165.25 3.15 177.95 70.78 0.60 6.63 73720.3 NextEraE 81.37 1.18 87.69 68.33 1.79 51.35 159602.78
NatAusBk 28.58 0.04 28.88 18.50 2.14 18.42 69622.79 AirLiquide 142.46 2.00 153.26 123.60 1.96 25.70 78228.69 Fuji Hvy Ind 2231 19.00 2329 1898.5 2.55 16.42 15091.96 Volvo 197.26 -0.32 240.80 165.60 3.04 12.27 36248.01 CardinalHlth♦ 48.36 0.62 62.96 44.92 3.99 23.48 13722.48 Nike 157.42 1.12 174.38 118.80 0.65 45.94 201152.29
Telstra 3.84 -0.01 4.05 2.66 2.71 24.77 33898.87 AXA 23.70 0.20 24.45 13.34 6.11 10.08 66457.31 Hitachi 6537 51.00 6944 3481 1.63 15.55 55664.68 Switzerland (SFr) Carnival 23.94 0.29 31.52 12.11 - -2.62 23313.36 NorfolkS 266.61 4.36 295.14 196.15 1.43 24.97 65845.26
Wesfarmers 54.35 0.15 67.20 45.45 2.91 31.37 45740.75 BNP Parib 56.63 0.27 57.92 28.79 1.99 9.04 82025.95 HondaMtr 3430 8.00 3677 2423.5 3.52 6.08 54643.15 ABB 31.68 0.35 34.79 21.85 2.45 78.71 70427.95 Caterpillar 194.43 5.49 246.69 149.63 2.10 24.66 106446.96 Northrop 391.07 2.37 396.58 282.88 1.50 14.22 62613.87
Westpc 25.27 -0.03 27.12 17.18 1.25 21.24 68810.79 ChristianDior 670.50 22.00 728.00 357.00 0.91 30.69 140268.05 JapanTob 2274 10.00 2303 1898 6.34 10.96 39998.24 CredSuisse 9.61 0.12 13.50 8.50 2.81 22.44 26536.27 CharlesSch 78.08 1.81 78.95 37.01 0.91 33.26 141094.67 NXP 188.89 5.79 228.72 126.80 0.98 51.69 50081.33
Woolworths 39.82 -0.26 42.66 31.24 2.46 34.14 37537.16 Cred Agr 12.59 0.04 13.49 6.51 6.44 9.11 45109.04 KDDI 3663 9.00 3899 2704.5 3.32 12.51 74229.01 Nestle 114.42 1.10 117.44 95.00 2.38 26.52 356931.44 Charter Comms 702.64 6.41 825.62 572.46 - 36.78 129160.83 Occid Pet♦ 32.08 -0.20 34.57 8.52 0.12 -5.86 29954.21
Belgium (€) Danone 58.12 0.89 65.30 46.03 7.04 18.68 46321.03 Keyence 65310 540.00 76210 47150 0.31 68.36 139693.89 Novartis 76.46 -0.04 86.92 70.42 3.96 21.16 204246.1 Chevron Corp 108.63 0.84 113.11 65.16 4.75 58.65 210080.85 Oracle 95.37 -1.03 97.35 55.14 1.05 21.78 261140.13
AnBshInBv 48.70 0.66 65.86 43.87 1.06 19.99 97747.14 EDF 12.45 -0.07 13.58 9.50 1.71 7.72 45545.82 MitsbCp 3637 -50.00 3735 2311.5 3.74 16.40 47522.76 Richemont 108.60 4.30 119.00 56.20 0.92 43.94 61381.84 Chubb 184.34 2.10 187.90 116.50 1.69 10.29 80877.34 Pepsico 159.23 1.24 159.63 128.32 2.58 27.16 220159.83
KBC Grp 79.16 1.34 81.02 40.88 0.56 12.83 38228.59 Engie SA 11.54 -0.08 13.87 10.10 4.65 56.95 32581.48 MitsubEst 1744.5 4.50 2047.5 1531.5 1.46 16.87 21348.53 Roche 357.15 0.05 374.70 290.55 2.52 22.21 271691.05 Cigna 203.61 4.14 272.81 160.37 0.97 9.09 69249.3 Perrigo 46.04 1.18 50.90 38.20 2.00 -18.45 6156.23
EssilorLuxottica 160.84 -0.08 174.28 103.05 0.76 801.09 82429.15 MitsubishiEle 1526 15.00 1817 1304.5 2.39 13.61 28816.93 Swiss Re 80.38 0.68 94.96 62.22 7.39 20.20 27632.97 Cisco 55.67 1.05 60.27 35.28 2.57 23.28 234816.12 Pfizer 41.86 0.44 51.86 32.78 3.64 19.39 234667.94
Brazil (R$)
Hermes Intl 1285.5 17.50 1354.5 765.00 0.36 59.83 157280.5 MitsuiFud 2577.5 -4.50 2816.5 1720.5 1.74 18.80 21885.84 Swisscom 542.60 -1.40 562.40 456.30 4.01 15.46 30434.45 Citigroup 70.33 0.07 80.29 40.49 2.87 7.28 142543.8 Phillips66 82.37 0.50 94.34 43.27 4.33 -21.38 36077.19
Ambev 15.47 -0.04 19.86 12.18 3.44 15.51 44259.15
LOreal 369.95 7.55 406.25 275.10 1.10 50.01 239103.75 MitUFJFin 649.00 -6.40 688.90 404.80 4.39 15.72 77522.63 UBS 15.78 0.30 15.81 10.19 4.26 8.42 63260.49 CME Grp 205.75 1.49 221.82 146.89 1.68 38.83 73892.05 PhilMorris 98.58 1.11 106.51 68.93 4.82 17.55 153640.58
Bradesco 17.39 -0.29 24.57 16.34 3.21 10.55 15393.86
LVMH 667.20 13.30 716.60 396.30 0.91 35.07 390304.33 Mizuho Fin 1546.5 -22.00 1732.5 1256 2.72 6.61 34536.31 Zurich Fin 390.40 3.70 411.30 297.80 5.16 13.22 63602.02 Coca-Cola 54.70 0.46 57.56 47.30 3.01 29.53 235852.81 PNCFin 202.20 1.69 204.93 106.85 2.25 15.49 85906.36
Cielo 2.50 -0.01 4.45 2.23 4.04 7.64 1234.44
Orange 9.48 0.07 10.87 8.85 7.49 28.33 29210.21 Murata Mfg 8535 155.00 10835 7135 1.37 19.59 50726.65 Cognizant 77.77 2.14 82.73 66.19 1.17 24.93 40875.69 PPG Inds 158.46 3.78 182.97 123.52 1.35 25.08 37611.52
ItauHldFin 21.46 -0.39 30.15 21.34 3.55 6.96 19338.77 Taiwan (NT$)
PernodRic 198.55 -0.25 199.90 136.15 1.42 178.52 60260.29 Nippon T&T 3103 -9.00 3293 2195.5 3.27 11.39 106452.22 ColgtPlm 76.63 0.56 86.41 74.01 2.29 24.18 64638.44 ProctGmbl 143.73 1.29 147.23 121.54 2.23 26.39 349021.81
Petrobras 30.38 0.08 32.34 17.74 3.50 3.69 41093.36 Chunghwa Telecom 110.50 -0.50 118.50 106.50 - 25.02 30498.71
Renault 32.10 -0.08 41.42 20.37 - -24.18 10999.83 NipponTT 3103 -9.00 3293 2195.5 3.27 11.39 106452.22 Comcast♦ 53.90 1.21 61.80 40.97 1.76 20.30 246854.88 Prudntl 109.40 1.95 111.91 60.39 4.07 6.07 42228.4
Vale 79.52 0.32 120.45 59.79 11.23 4.45 74177.01 Formosa PetChem 101.00 -3.00 117.50 78.00 - 16.72 34231.92
Safran 113.92 1.18 127.74 84.26 0.38 35.91 56407.42 Nissan Mt 580.40 -0.80 664.50 364.20 - -46.09 21544.39 ConocPhil 73.23 - 75.52 27.53 2.31 65.58 98060.98 PublStor 322.64 5.32 332.95 212.22 2.46 44.81 56535.64
Canada (C$) HonHaiPrc 106.50 -0.50 134.50 76.80 3.94 11.07 52530.06
Sanofi 84.13 0.60 91.14 74.92 3.85 18.04 123191.57 Nomura 541.70 -10.00 721.00 463.30 6.56 28.75 15404.95 Corning 37.56 0.71 46.82 31.28 2.43 34.79 32077.45 Qualcomm 128.43 3.39 167.94 121.05 2.03 16.21 144863.4
Bausch Hlth 35.24 0.50 43.97 21.15 - -7.99 10215.44 MediaTek 840.00 -28.00 1185 650.00 4.40 16.45 48031.98
Sant Gbn 61.41 1.27 64.93 31.23 2.19 14.82 37902.91 Nppn Stl 1947 22.00 2381 1005.5 0.52 10.29 16272.6 Costco 450.09 4.79 470.49 307.00 0.62 43.95 198860.48 Raytheon 89.67 -0.01 91.38 51.92 2.14 53.57 135211.43
BCE♦ 64.01 0.66 67.08 52.52 5.28 21.72 46963.9 TaiwanSem 573.00 -6.00 679.00 428.00 1.74 27.18 528645.52
Schneider 144.16 3.58 159.30 101.25 1.83 27.34 95070.82 Panasonic 1376.5 16.00 1520 857.70 1.47 12.59 29706.24 CrownCstl 171.31 1.59 204.62 146.15 3.00 66.53 74039.56 Regen Pharm 562.10 14.98 686.62 441.00 - 10.21 59080.31
BkMontrl 130.24 0.73 132.35 78.70 3.14 16.45 68254.33 Seven & I 4759 27.00 5340 3138 2.07 20.16 37101.07 Thailand (THB) CSX 33.29 0.71 34.96 25.13 1.07 22.86 75049.24 S&P Global 440.80 10.37 456.63 303.50 0.65 43.72 106232.8
SocGen 28.29 0.34 28.65 11.05 1.97 7.93 27979.24
BkNvaS♦ 78.93 0.35 82.35 53.92 4.53 12.82 77576.03 ShnEtsuCh 19165 430.00 21480 13890 1.33 26.59 70228.6 PTT Explor 39.50 -0.50 45.00 30.50 2.60 13.01 33975.4 CVS 84.94 1.78 90.61 55.36 2.33 15.71 112078.08 Salesforce 288.33 3.92 289.80 201.51 - 118.14 282275.07
Total 39.69 0.87 42.19 24.51 6.66 19.52 127408.73
Brookfield 71.40 0.79 72.52 38.77 0.86 32.94 94715.86 Softbank 6252 58.00 10695 5888 0.78 14.04 94735.56 United Arab Emirates (Dhs) Danaher 301.80 5.94 333.96 211.22 0.26 41.18 215454.89 Schlmbrg 33.19 0.43 36.87 13.70 1.49 45.91 46413.99
UnibailR 63.20 0.90 85.65 32.30 - -2.10 10151.44
CanadPcR♦ 88.49 1.80 100.00 78.36 0.85 18.55 47731.41 Sony 12555 195.00 13200 7564 0.44 13.01 139242.72 Emirtestele 24.96 -0.02 25.40 16.64 2.17 23.86 59096.7 Deere♦ 331.72 2.72 400.34 221.73 0.98 19.54 102853.59 Sempra Energy♦ 127.15 0.30 144.93 114.66 3.34 18.58 40604.1
Vinci 89.46 0.30 96.95 64.86 2.31 22.52 62038.01
CanImp♦ 145.46 0.96 152.84 96.42 3.99 12.35 52981.86 SumitomoF 3805 -58.00 4354 2852.5 5.65 185.78 45991.36 Delta 41.15 0.12 52.28 28.74 - -3.96 26329.3 Shrwin-Will 291.39 1.45 310.43 218.06 0.68 36.87 76723.7
Vivendi 11.00 - 11.50 4.93 5.53 10.34 14132.44 United Kingdom (p)
CanNatRs 51.18 1.16 51.20 20.31 3.46 15.05 48763.45 Takeda Ph 3230 5.00 4365 3157 5.65 11.63 44946.79 Devon Energy 39.42 0.43 40.86 7.73 1.11 189.54 26687.34 SimonProp 138.64 1.49 139.90 59.35 4.71 30.63 45558.65
Germany (€) AscBrFd 1804 -6.00 2528 1618 - 35.65 19540.29
CanNatRy 150.66 2.85 161.15 125.00 1.56 27.01 86396.34 TokioMarine 6020 -44.00 6210 4650 3.37 18.53 36928.45 DiscFinServ 125.35 2.31 135.69 60.42 1.39 8.09 37538.37 SouthCpr 62.10 2.60 83.29 45.88 3.51 17.37 48008.35
Allianz 196.40 1.32 223.50 148.60 4.95 9.32 93845.25 AstraZen 8814 -41.00 9081 6499.8 2.33 42.43 152724.48
Enbridge 52.52 0.15 52.68 35.80 6.19 17.70 86056.03 Toyota 1985.5 9.50 2092 1356 12.01 1.85 284889.86 Disney 175.14 2.18 203.02 117.23 - 285.22 318251.55 Starbucks 112.34 1.58 126.32 85.45 1.55 47.26 132460.09
BASF 65.09 0.19 72.88 45.92 5.14 30.30 69286.4 Aviva 398.00 2.40 429.60 247.40 6.78 13.27 21853.78
GtWesLif 38.82 0.11 39.73 26.36 4.46 11.29 29191.63 DominRes 73.94 0.57 86.95 67.85 3.79 25.83 59779.55 StateSt 91.80 2.19 94.64 57.16 2.24 14.76 31533.59
Bayer 47.78 0.70 57.73 39.91 4.24 -6.12 54401.37 Mexico (Mex$) Barclays 194.40 1.48 217.63 97.98 0.51 6.28 45385.69
ImpOil 42.40 0.32 42.99 15.91 2.17 -82.46 23958.15 DukeEner 101.44 0.74 108.38 85.56 3.77 26.88 78037.76 Stryker♦ 261.95 5.45 281.16 196.09 0.93 48.44 98780.37
BMW 86.36 0.54 96.39 57.25 2.23 5.09 60251.85 AmerMvl 18.29 0.14 19.90 12.71 2.13 11.67 39984.72 BP 357.70 2.75 361.71 3.20 4.23 11.56 97541.23
Manulife 24.83 0.32 27.68 17.58 4.46 6.90 39008.81 DuPont 71.59 1.93 87.27 55.23 1.66 36.51 37445.63 Sychrony Fin 49.25 0.85 52.20 24.47 1.77 8.90 28057.68
Continental 98.68 0.07 132.68 88.50 3.08 389.49 22873.72 FEMSA UBD 172.88 0.38 180.66 112.72 3.05 61.69 18105.03 BrAmTob 2593 23.50 2961.5 207.50 8.16 9.61 66145.65
Nutrien♦ 88.38 0.66 89.67 49.88 2.52 42.71 40824.22 Eaton 158.61 5.22 171.32 101.52 1.84 44.93 63251.22 T-MobileUS 119.13 2.67 150.20 107.56 - 37.71 148670.23
Daimler 83.22 1.66 83.26 43.12 2.74 6.55 103183.49 WalMrtMex 72.16 0.18 74.42 50.12 0.85 29.47 61057.64 BT 140.90 -0.50 206.70 97.24 - 9.65 19127.34
RylBkC 129.30 0.63 134.23 90.75 3.32 13.23 149028.61 eBay 74.75 -0.15 77.84 45.36 0.90 23.01 48591.67 Target 241.82 5.07 267.06 150.80 1.11 19.58 118017.6
Deut Bank 11.06 0.11 12.56 7.48 - 17.46 26496.65 Netherlands (€) Compass 1490.5 4.50 1721.63 18.06 - -64.52 33538.04
Suncor En 29.23 0.05 31.38 14.28 2.84 29.56 35060.22 Ecolab♦ 217.50 4.23 231.25 181.25 0.87 60.00 62223.97 TE Connect 145.74 4.32 153.54 94.16 1.32 29.02 47802.27
Deut Tlkm 16.53 0.15 18.92 12.59 3.68 14.56 95527.78 ASML Hld 666.20 24.70 764.40 304.50 0.42 57.26 319128.36 Diageo 3639 43.00 3666 2474 1.94 32.09 125340.11
ThmReut 144.73 0.73 152.03 99.11 1.33 8.48 57755.88 Emerson 94.10 2.23 105.99 63.65 2.12 24.30 56252.98 Tesla Mtrs 816.98 5.90 900.40 379.11 - 427.40 808822.58
DeutsPost 52.78 -0.02 61.38 37.67 2.30 21.16 75792.5 Heineken 91.80 0.14 103.80 75.52 0.77 46.22 61281.85 GlaxoSmh 1401.8 0.80 1528.8 1190.8 5.71 16.17 94321.33
TntoDom♦ 85.25 0.21 89.12 57.44 3.68 11.05 125677.09 EOG Res 88.78 -1.22 93.07 31.22 1.72 27.75 51835.16 TexasInstr 191.61 4.51 200.92 141.33 2.05 26.98 176896.26
E.ON 10.40 -0.06 11.43 8.27 4.58 7.89 31829.9 ING 12.74 0.16 12.88 5.65 0.95 9.83 57643.6 Glencore 384.80 12.55 386.40 3.40 1.13 33.22 75943.52
TrnCan♦ 64.79 0.61 65.44 50.61 5.13 31.65 51314.19 EquityResTP 84.80 0.77 86.04 45.43 2.81 46.87 31753.98 TheTrvelers 157.59 1.20 163.29 109.62 2.16 10.71 39317.59
Fresenius Med 61.24 0.56 75.08 55.18 4.20 17.72 20786.65 Unilever 45.81 0.27 53.66 43.00 2.38 25.90 161651.05 HSBC 426.00 1.45 462.55 292.80 2.52 13.08 116862.4
China (HK$) Imperial Brands 1561 11.50 1686 1142 11.90 9.87 20369.46 Exelon 49.63 0.55 50.99 38.36 3.05 50.62 48529.83 ThrmoFshr♦ 580.10 6.54 616.93 433.52 0.16 27.13 228222.3
Fresenius SE 41.20 0.88 47.60 31.03 4.23 13.03 21594.47 Norway (Kr)
AgricBkCh 2.67 -0.01 3.30 2.51 8.30 3.57 10548.03 LlydsBkg 48.44 0.68 50.56 25.99 1.18 7.45 47764.53 ExxonMb 61.76 0.69 64.93 31.11 5.58 -20.05 261464.85 TJX Cos 63.76 0.26 76.16 50.06 0.80 31.30 76673.9
HenkelKgaA 72.50 0.55 86.50 70.85 2.56 19.76 21829.05 DNB 207.80 3.10 210.40 125.30 3.97 15.94 38092.78
Bk China 2.73 0.01 3.17 2.45 8.47 3.54 29340.55 Natl Grid 901.40 -0.60 983.70 805.40 5.44 19.47 41396.25 Facebook 328.77 4.23 384.33 244.61 - 24.63 783714.04 Truist Financial Corp 60.15 0.23 62.69 40.05 2.96 15.86 80892.44
Linde 265.25 5.70 271.55 183.15 1.30 49.82 158750.77 Equinor 230.55 4.20 232.35 116.30 1.49-114.68 88805.06
BkofComm 4.68 -0.03 5.26 3.76 8.03 3.69 21058.94 Natwest Group 229.50 1.20 234.00 107.80 1.31 15.20 37573.33 Fedex 227.11 3.38 319.90 216.34 1.10 12.13 60331.78 UnionPac 220.82 4.97 231.26 171.50 1.79 25.39 144001.79
MuenchRkv 241.80 2.65 269.30 194.10 4.11 15.85 39260.5 Telenor 139.75 0.05 161.45 137.30 6.48 11.32 23124.63
BOE Tech 0.98 -0.14 1.20 0.55 - -82.67 25.06 Prudential 1451.5 16.00 1598.5 861.00 0.81 20.17 51381.78 FordMtr 15.49 -0.03 16.46 7.37 - 18.39 60761.78 UPS B 191.53 7.47 219.59 154.76 2.10 27.99 139485.67
SAP 124.96 3.46 135.62 89.93 1.50 24.86 177914.92
Ch Coms Cons 4.20 -0.08 4.73 3.21 5.03 2.93 2385.05 Qatar (QR) ReckittB 5488 25.00 7972 5050 3.18 -23.75 52876.31 Franklin♦ 30.11 1.18 35.94 17.97 4.54 12.56 15140.94 USBancorp 59.41 -2.05 63.00 36.57 2.80 12.87 88082.76
Siemens 141.06 4.18 151.86 98.50 2.51 22.34 138959.27
Ch Evrbrght 2.73 -0.02 3.54 2.63 9.15 3.82 4448.59 QatarNtBk 19.62 0.08 19.65 16.35 2.26 16.16 49762.83 RELX 2192 26.00 2246 1484.9 2.14 31.68 58016.56 GenDyn♦ 205.39 2.00 206.46 129.17 2.21 18.05 57415.01 UtdHlthcre 421.36 17.81 433.50 299.60 1.22 28.08 397307.66
Volkswgn 275.20 6.00 357.40 131.80 1.77 7.72 94116.84
Ch Rail Cons 5.25 -0.05 6.03 4.07 4.70 2.70 1400.96 Russia (RUB) RioTinto 5111 181.00 6876.26 4252.5 6.58 6.13 93789.23 GenElectric 103.04 0.68 115.32 52.88 0.31-433.49 113344 ValeroEngy 79.48 1.34 84.95 35.44 4.88 -23.88 32493.29
Ch Rail Gp 3.91 -0.03 4.70 3.33 5.08 3.32 2114.3 Hong Kong (HK$) GenMills 62.27 0.41 64.65 53.96 3.12 17.11 37713.44 Verizon♦ 51.96 0.61 61.95 50.86 4.78 10.86 215120.01
Gzprm neft 368.23 -1.29 412.31 74.00 - - 121999.08 RollsRoyce 143.44 0.12 148.45 59.37 - 3.13 3650.01
ChConstBk 5.49 0.02 6.74 5.22 7.03 4.13 169636.06 AIA 87.50 -1.15 109.30 73.05 1.46 23.54 136035.89 GenMotors 57.73 -0.04 64.30 30.95 - 6.74 83804.39 VertexPharm 182.96 1.62 275.75 176.36 - 24.37 47465.02
Lukoil 7268.5 1.79 7411.52 3718.45 - - 70480.48 RylDShlA 1744.8 23.80 1761.2 878.10 2.77 33.95 109744.07
China Vanke 21.50 -0.10 35.00 17.82 5.58 5.24 5253.42 BOC Hold 24.60 - 29.55 20.95 4.98 11.05 33427.43 GileadSci 68.56 0.93 73.34 56.56 4.02 16.88 85961.18 VF Cp 73.59 1.29 90.79 65.34 2.62 36.97 28873.49
MmcNrlskNckl 21755 -929.56 28011.97 343.80 - - 48179.84 StandCh♦ 485.40 7.60 533.20 345.00 1.34 17.33 21894.65
ChinaCitic 3.51 - 4.29 3.06 8.59 3.22 6713.49 Ch OSLnd&Inv 17.94 0.08 21.95 14.92 6.06 3.80 25235.35 GoldmSchs 388.05 1.74 420.76 185.52 1.28 7.16 130810.68 ViacomCBS 39.48 0.11 101.97 27.01 2.41 7.80 23917.52
Novatek♦ 1893.4 43.94 13307.81 953.54 - - 80456.83 Tesco 266.00 -3.35 317.55 2.74 4.62 35.28 29798.38
ChinaLife 13.70 -0.10 19.20 12.22 5.54 5.37 13102.12 ChngKng 45.55 0.15 56.05 35.65 3.90 9.33 21330.23 Halliburton 24.76 0.27 25.50 10.99 0.72 138.86 22044.31 Visa Inc 224.64 2.18 252.67 179.23 0.56 45.82 380047.33
Rosneft 642.95 6.57 39143.78 133.30 - - 95363.78 Vodafone 111.12 0.98 1425 1.56 6.90 342.96 40553.25
ChinaMBank 63.20 -0.10 72.45 37.25 2.35 12.78 37290.1 Citic Ltd♦ 7.94 -0.09 10.24 5.20 4.84 4.08 29685.74 HCA Hold 243.89 4.88 263.92 121.91 0.39 16.88 78079.41 Walgreen 50.29 3.03 57.05 33.36 3.58 20.17 43495.89
Sberbank 377.99 -8.07 568.52 2.82 - - 114195.17 WPP♦ 986.20 5.20 1024.46 11.00 2.43 25.06 17083.81
ChinaMob 48.45 -0.30 59.20 39.00 6.91 7.51 127498.99 Citic Secs 18.46 -1.34 22.00 15.22 - 11.12 5405.38 Hew-Pack 27.24 0.76 36.00 17.25 2.74 8.60 31394.73 WalMartSto 139.76 1.39 153.66 126.28 1.53 39.89 389720.45
Surgutneftegas 36.65 -0.22 43.50 29.80 - - 18322.08 United States of America ($)
ChinaPcIns 25.00 -0.30 42.75 20.85 5.64 7.37 8917.21 CK Hutchison 52.60 -0.35 65.80 45.80 4.34 5.96 25935.97 HiltonWwde 142.28 1.45 145.25 83.62 - -142.24 39651.44 WellsFargo 45.34 -0.71 51.41 20.76 0.87 12.21 186171.92
CNOOC 8.69 -0.21 10.60 6.50 5.22 6.79 49864.96 Saudi Arabia (SR) 21stC Fox A 42.45 0.10 44.80 24.94 1.07 11.87 13728.5
ChMinsheng 3.12 -0.08 5.01 2.56 8.19 3.99 3336.36 HomeDep 343.13 4.85 345.69 246.59 1.81 24.54 362125.23 Williams Cos 29.32 0.39 29.42 18.26 5.47 31.17 35626.24
HangSeng 144.20 0.60 166.70 112.60 3.76 17.91 35432.03 AlRajhiBnk 134.60 -0.40 135.40 65.00 1.76 26.79 89716.58 3M 179.35 2.18 208.95 156.13 3.26 17.91 103778.77
ChMrchSecs 17.98 0.08 28.18 16.01 1.84 15.58 20740.87 Honywell 218.53 2.95 236.86 159.42 1.67 31.34 150872.95 Yum!Brnds 125.51 1.99 135.77 92.22 1.53 29.13 37106.6
HK Exc&Clr 462.20 -9.00 587.00 360.00 1.45 50.92 75313.33 Natnlcombnk 64.00 0.70 64.70 38.60 1.23 18.53 51190.44 AbbottLb 117.33 0.78 129.70 103.13 1.37 33.37 208004.66
Chna Utd Coms 4.18 -0.01 5.10 4.01 1.58 21.09 19981.02 HumanaInc♦ 431.44 10.75 475.44 370.22 0.61 23.00 55442.05 Venezuela (VEF)
MTR 42.05 0.15 49.00 38.00 2.92 -53.99 33462.64 SaudiBasic 132.20 3.60 132.20 88.70 2.24 25.37 105740.25 Abbvie 108.46 1.23 121.53 79.11 4.53 29.60 191667.86
ChShenEgy 18.34 0.20 19.36 13.22 11.61 6.90 7961.06 IBM 142.95 2.19 152.84 105.92 4.52 24.80 128128.95 Bco de Vnzla 0.65 -64.35 594.00 0.01 142.26 - 570.16
SandsCh 16.44 0.38 40.55 14.64 - -14.62 17100.18 SaudiTelec 117.60 -0.40 139.80 99.40 3.36 21.39 62708.3 Accenture 337.68 7.50 345.52 212.45 0.98 39.20 225040.64
ChShpbldng 4.29 -0.01 5.08 3.78 - -272.25 14724.82 IllinoisTool 220.03 5.25 242.07 192.29 2.05 26.42 69302.37 Bco Provncl 603.00 596.97 603.00 0.72 - -1424.98 15568.61
SHK Props 100.90 -0.20 126.00 94.00 4.90 13.49 37578.12 Singapore (S$) Adobe 607.89 16.77 673.88 420.78 - 54.78 289598.8
ChStConEng 4.72 - 5.61 4.38 4.49 3.92 29816.87 Illumina 408.58 3.44 555.77 288.01 - 79.03 59938.7 Mrcntl Srvcs 64.00 57.60 64.00 0.75 0.00 22.29 932.96
Tencent 483.20 -12.80 775.50 412.20 0.32 21.03 595946.5 DBS 30.42 -0.08 31.74 20.25 2.35 13.23 57906.99 AEP 83.69 0.23 94.21 74.80 3.46 18.02 41866.03
ChUncHK 4.05 -0.01 6.12 3.90 4.31 8.01 15926.94 Intcntl Exch 129.07 0.72 129.67 92.41 0.97 26.06 72686.44
JardnMt US$ 55.38 0.12 68.88 40.72 3.08 83.46 39943.63 Aetna - - - - - - -
CNNC Intl 6.29 0.02 8.31 4.39 1.91 15.52 16627.44 India (Rs) Intel 53.77 1.51 68.49 43.61 2.50 12.06 218144.89 Closing prices and highs & lows are in traded currency (with variations for that
OCBC 11.88 0.04 12.77 8.40 2.66 11.17 39624.33 Aflac 55.01 1.05 57.64 33.37 2.20 6.72 36894.13
CSR 3.63 -0.03 4.22 2.53 5.93 7.85 2039.28 Bhartiartl 685.80 -4.10 739.13 386.74 0.29 -38.87 50046.81 Intuit♦ 548.15 13.21 582.96 312.05 0.41 70.39 149695.34 country indicated by stock), market capitalisation is in USD. Highs & lows are
SingTel 2.51 0.01 2.63 2.00 4.19 74.59 30717.6 AirProd♦ 287.27 8.85 327.89 245.75 1.96 32.96 63590.96
Daqin 6.31 0.03 7.11 5.80 - 8.31 14580.24 HDFC Bk 1687.4 48.00 1690 1164 0.39 27.71 124157.92 John&John 160.96 1.76 179.92 133.65 2.52 24.44 423724.32 based on intraday trading over a rolling 52 week period.
UOB 26.60 0.02 27.01 18.96 2.92 13.75 33023.59 Alexion 182.50 3.05 187.45 99.91 - 59.43 40336.01
GuosenSec 11.69 0.03 14.67 10.32 1.94 14.11 16037.99 Hind Unilevr 2649.55 2.80 2859.3 2043 1.53 75.77 82720.06 JohnsonCn 70.94 1.99 76.83 40.92 1.48 31.01 50521.63 ♦ ex-dividend
Allstate 126.36 0.66 140.00 86.51 2.12 5.35 37360.82
HaitongSecs 7.03 -0.13 7.93 6.36 8.97 5.65 3080.58 HsngDevFin 2808.75 43.15 2896 1906.85 1.57 25.11 67485.2 South Africa (R) JPMrgnCh 162.83 1.83 171.51 95.24 2.19 10.97 486561.34
Alphabet 2811.87 60.23 2925.08 1508.48 - 30.81 846610.83 ■ ex-capital redistribution
Hngzh HikVDT 56.29 0.37 70.48 38.25 1.40 34.68 71240.53 ICICI Bk 727.30 17.35 735.40 388.05 - 25.19 67018.06 Firstrand 60.00 -0.49 65.24 37.10 2.46 23.52 22720.05 Kimb-Clark 133.04 0.49 155.26 128.02 3.29 22.88 44802.83
Altria 48.56 0.64 52.59 35.83 7.02 20.01 89548.42 # price at time of suspension
Hunng Pwr 3.92 0.08 4.91 2.44 5.42 -47.24 2368.1 Infosys 1715.75 6.55 1788 1051.1 1.60 35.41 95877.02 MTN Grp 138.93 -1.93 146.30 52.65 - 32.90 17671.53 KinderM 18.30 0.33 19.29 11.45 5.72 24.31 41477.1
Amazon 3306.21 21.93 3773.08 2881 - 58.131674398.71
IM Baotou Stl 2.90 -0.01 4.14 1.12 - 43.46 14277.87 ITC 256.55 7.35 261.85 163.35 4.20 22.60 41999.13 Naspers N 2554.81 8.90 3888 1262.66 0.22 14.44 75109.14 Kraft Heinz 37.15 0.35 44.95 29.21 4.27 21.31 45448.83
AmerAir 19.72 0.11 26.09 10.63 - -1.95 12767.87
In&CmBkCh 4.37 0.01 5.75 4.15 7.04 4.34 48747.01 L&T 1789.3 37.25 1817.9 884.00 0.45 59.40 33394.01 South Korea (KRW) Kroger 39.61 0.14 47.99 30.35 1.75 20.77 29455.52
AmerExpr 171.78 3.06 179.67 89.11 0.99 20.17 136467.71
IndstrlBk 19.09 -0.12 28.07 16.66 3.89 6.09 58199.04 OilNatGas 159.05 -0.95 172.75 64.10 1.10 9.02 26587.04 HyundMobis 273000 2000 405000 214000 1.52 13.71 21804.37 L Brands 79.92 -0.15 - - - - -
AmerIntGrp 57.35 1.14 58.86 29.12 2.21 12.16 49045.86
Kweichow 1911 -18.90 2627.88 1525.5 1.00 49.93 373107.83 RelianceIn 2700.4 5.45 2720 1830 0.26 36.78 242636.74 KoreaElePwr 22750 -100.00 30050 19900 5.56 6.84 12305.42 LasVegasSd 40.24 0.19 66.77 35.59 - -21.84 30742.95
AmerTower 267.56 3.38 303.72 197.50 1.80 54.47 121777.6
Midea 0.54 -0.04 0.85 0.52 - -3.44 20.89 SBI NewA 490.60 8.90 493.90 185.90 0.82 17.45 58178.65 SK Hynix 93800 1800 150500 79200 1.30 12.07 57536.01 LibertyGbl 29.50 0.43 30.58 18.73 - 1.63 5207.99
Amgen 206.59 2.98 276.69 200.47 3.22 21.20 117312.62
New Ch Life Ins 23.95 -0.20 35.35 20.55 6.91 3.79 3183.1 SunPhrmInds 841.30 -1.25 850.00 452.25 0.77 33.56 26821.84 SmsungEl 69400 600.00 96800 56000 4.50 16.02 349077.72 Lilly (E) 236.34 -0.10 275.87 129.21 1.33 35.88 226656.07
Anthem 389.64 14.19 406.00 269.01 1.06 23.03 95000.26
PetroChina♦ 4.03 -0.08 4.20 2.16 5.14 6.14 10927.96 Tata Cons 3611.45 -43.75 3989.9 2600.05 0.92 38.99 177508.19 Spain (€) Linde 308.37 7.38 317.03 214.14 1.30 49.98 159245.76
Aon Cp 306.98 6.31 307.08 179.52 0.60 34.02 69298.73
PingAnIns♦ 56.75 -3.10 103.60 48.80 4.56 6.43 54319.95 Israel (ILS) BBVA 5.64 -0.05 6.08 2.18 1.06 11.12 43561.3 Lockheed 362.69 0.93 396.99 319.81 2.79 14.24 100434.84
Apple 143.19 2.28 157.26 107.32 0.58 28.242366954.47
PngAnBnk 19.21 -0.37 25.31 16.15 0.92 12.65 57939.37 TevaPha 32.90 -0.28 43.90 27.38 - -2.90 11224.47 BcoSantdr 3.28 0.01 3.51 1.50 - -6.97 65937.96 Lowes 215.81 3.69 216.17 146.72 1.19 22.59 149433.9
Aptiv 167.03 2.15 170.47 92.56 - 47.24 45182.88
Pwr Cons Corp 6.67 0.09 9.96 3.57 1.37 13.51 11553.07 CaixaBnk 2.63 0.01 2.90 1.52 1.03 3.38 24550.47 Lyondell 98.21 1.93 118.02 66.72 4.32 8.12 32851.08
Italy (€) ArcherDan 63.72 0.80 69.30 45.68 2.27 15.69 35597.7
SaicMtr 20.55 0.30 28.80 18.03 - 9.54 37316.27 Iberdrola 9.59 0.11 12.57 8.59 4.23 18.93 70769.57 Marathon Ptl 66.33 1.07 66.40 26.77 3.46 -29.63 42331.95
Enel 6.94 0.11 9.05 6.55 5.01 28.53 81771.73 AT&T 25.80 0.50 33.88 25.01 7.98 -84.03 184212
ShenwanHong 0.09 0.00 0.11 0.04 - -9.56 97.92 Inditex 30.38 -0.02 32.85 20.86 1.93 47.66 109733.89 Marsh&M 160.95 3.53 162.26 102.11 1.14 33.51 81541.44
ENI 11.98 0.16 12.07 5.73 4.85 -4.68 50060.87 AutomData 208.31 3.12 217.15 144.59 1.76 34.65 88057.5
ShgPdgBk 9.04 -0.03 11.24 8.92 6.55 5.21 41240.37 Repsol 11.53 0.14 11.78 5.04 5.17 43.74 20403.05 MasterCard 343.54 1.19 401.50 281.20 0.48 48.18 336266.85
Generali 18.73 0.02 18.99 11.18 5.47 11.77 34311.32 Avago Tech 498.79 13.78 510.70 344.42 2.71 46.91 205310.87
Sinopec Corp 4.01 -0.01 4.69 2.95 5.59 5.89 13148.86 Telefonica 3.94 -0.03 4.32 2.71 10.08 2.39 25754.63 McDonald's 245.13 2.48 249.95 202.73 2.07 26.93 183062.81
IntSPaolo 2.52 0.03 2.53 1.38 - 19.51 56826.53 BakerHu 26.63 0.38 26.69 12.81 2.68 50.73 22062.61
Sinopec Oil 2.32 - 2.90 1.74 - 337.88 4892.85 McKesson 202.16 2.90 210.00 141.32 0.82 -7.32 31269.01
Unicred 11.71 0.06 12.16 6.09 - 42.07 30372.93 Sweden (SKr) BankAm 44.53 1.39 44.87 23.12 1.60 14.99 374715.67
Denmark (kr) Medtronic♦ 124.90 2.33 135.89 98.94 1.87 44.38 167853.63
Japan (¥) AtlasCpcoB 465.30 4.10 518.00 336.00 1.54 34.35 21004.35 Baxter 79.71 0.91 88.32 73.12 1.26 36.92 39847.85
DanskeBk 109.75 1.95 125.60 83.60 1.85 9.69 14738.83 Merck 79.11 0.16 84.56 68.38 3.21 32.60 200251.74
AstellasPh 1960.5 23.50 2025 1426 2.17 35.56 32100.91 Ericsson 105.48 -0.26 121.80 93.42 1.66 17.77 37489.96 BectonDick 242.69 2.85 267.37 226.15 1.34 38.71 69698.18
MollerMrsk 16565 -840.00 20570 9734 2.00 5.83 22983.71 Metlife 65.36 1.21 67.68 35.90 2.82 13.28 56006.82
Bridgestne 5247 -1.00 5467 3307 2.80 27.94 32934.13 H&M 164.44 -2.70 229.50 138.75 - 45.15 27786.12 BerkshHat 424463.03 6061.03 445000 297817 - 6.37 264638.27
NovoB 646.70 2.70 684.50 406.90 1.43 33.32 178551.29 Microsoft 301.02 4.71 305.84 199.62 0.72 37.762262132.56
Canon 2707.5 -25.50 2800 1627 3.19 15.89 31759.07 Investor 195.84 3.28 221.60 132.35 1.28 1.90 41276.45 Biogen 286.48 2.83 468.55 223.25 - 22.48 42695.1
Mnstr Bvrg 85.86 0.53 99.89 75.45 - 30.10 45407.49
BkNYMeln 56.21 0.92 56.65 33.19 2.18 14.67 48518.99

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
Nissan Mt 580.40 581.20 -0.80 -0.14 59.00 11.3 2.71 Pwr Cons Corp 6.67 6.58 0.09 1.37 -1.80 -21.3 -24.12 Oct 14 date Coupon S* M* F* price yield yield yield US Oct 14 date Coupon S* M* F* price yield yield yield US
PingAnIns 56.75 59.85 -3.10 -5.18 5.75 11.3 -5.50 CNNC Intl 6.29 6.27 0.02 0.32 -0.92 -12.8 -12.88 High Yield US$ US$
ITC 256.55 249.20 7.35 2.95 25.30 10.9 19.80 IM Baotou Stl 2.90 2.91 -0.01 -0.34 -0.27 -8.5 -23.88 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 -
Fuji Hvy Ind 2231.00 2212.00 19.00 0.86 198.50 9.8 6.98 ShenwanHong 0.09 0.09 0.00 -2.25 -0.01 -8.4 40.32 High Yield Euro The Goldman Sachs Group, Inc. 02/28 5.00 BBB+ A3 A 117.21 2.47 0.00 0.32 -
Panasonic 1376.50 1360.50 16.00 1.18 118.00 9.4 -4.81 Sinopec Oil 2.32 2.32 0.00 0.00 -0.21 -8.3 -8.66 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 -
HyundMobis 273000.00 271000.00 2000.00 0.74 23000.00 9.2 2.82 Midea 0.54 0.58 -0.04 -6.90 -0.04 -6.9 -12.90 GTE LLC 04/28 6.94 BBB+ Baa2 A- 128.27 2.80 0.00 -0.11 -
AirProd 287.27 278.42 8.85 3.18 23.92 9.1 6.85 Gzprm neft 368.23 369.52 -1.29 -0.35 -27.27 -6.9 12.10 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 130.43 2.62 -0.07 -0.22 -
ChinaPcIns 25.00 25.30 -0.30 -1.19 2.00 8.7 2.89 BBVA 5.64 5.69 -0.05 -0.93 -0.40 -6.7 0.71 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 -
LasVegasSd 40.24 40.05 0.19 0.47 3.12 8.4 3.90 Citic Secs 18.46 19.80 -1.34 -6.77 -1.22 -6.2 -13.52 Colombia 01/26 4.50 - Baa2 BBB- 109.50 2.33 0.16 0.52 1.28
Brazil 04/26 6.00 - Ba2 BB- 115.15 2.78 -0.01 0.65 1.73 Euro
Cielo 2.50 2.51 -0.01 -0.40 0.19 8.2 2.46 Comcast 53.90 52.69 1.21 2.29 -3.51 -6.1 -3.13 Electricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -
ChinaLife 13.70 13.80 -0.10 -0.72 1.04 8.2 1.94 Delta 41.15 41.03 0.12 0.28 -2.54 -5.8 4.28 Poland 04/26 3.25 - A2 A- 111.22 0.98 0.03 0.16 -0.07
Mexico 05/26 11.50 - Baa1 BBB- 149.00 1.61 0.00 -0.12 0.56 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 124.42 0.68 0.00 -0.11 -
KinderM 18.30 17.97 0.33 1.84 1.36 8.0 14.18 E.ON 10.40 10.46 -0.06 -0.55 -0.63 -5.7 -5.97 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -
Sony 12555.00 12360.00 195.00 1.58 930.00 8.0 2.66 OilNatGas 159.05 160.00 -0.95 -0.59 -9.05 -5.4 29.26 Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07
Turkey 03/27 6.00 - B2 BB- 102.88 5.43 0.14 0.83 4.38 Finland 04/31 0.75 AA+ Aa1 AA+ 111.08 -0.27 0.00 -0.05 -0.87
Toyota 1985.50 1976.00 9.50 0.48 145.50 7.9 1.35 Charter Comms 702.64 696.23 6.41 0.92 -39.31 -5.3 -7.71
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
SaicMtr 20.55 20.25 0.30 1.48 1.47 7.7 -0.58 Tata Cons 3611.45 3655.20 -43.75 -1.20 -199.45 -5.2 -6.08
Russia 06/28 12.75 - Baa3 BBB 168.12 2.48 0.07 0.05 - Mexico 06/26 1.09 - Baa1 BBB- 98.73 1.34 -0.02 -0.14 0.27
VF Cp 73.59 72.30 1.29 1.78 5.19 7.6 4.43 MollerMrsk 16565.00 17405.00 -840.00 -4.83 -905.00 -5.2 -13.36
Denso 7647.00 7589.00 58.00 0.76 536.00 7.5 -2.30 WellsFargo 45.34 46.05 -0.71 -1.55 -2.42 -5.1 -1.72 Brazil 02/47 5.63 - Ba2 BB- 101.48 5.52 0.08 0.80 - £ Sterling
BakerHu 26.63 26.25 0.38 1.45 1.84 7.4 9.26 AT&T 25.80 25.30 0.50 1.98 -1.29 -4.8 -5.63 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -
Tencent 483.20 496.00 -12.80 -2.58 33.20 7.4 -1.88 Mnstr Bvrg 85.86 85.33 0.53 0.62 -4.22 -4.7 -9.59 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
Glencore 384.80 372.25 12.55 3.37 26.40 7.4 12.37 JPMrgnCh 162.83 161.00 1.83 1.14 -7.26 -4.3 3.61 Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 - Baa1 BBB- 106.48 -0.26 - - -0.36 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Oct 14 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Oct 14 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 15-03-2020 1.00-1.25 1.50-1.75 1.25-1.50 Index change change change 1 month 1 year VIX 17.41 -1.23 18.64 41.16 14.10 Oct 14 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 16.27 -1.52 17.79 47.53 2.67 - - - - - - - - -
US Discount 2.65 30-09-2019 2.75 2.75 1.75 ABF Pan-Asia unhedged 217.49 -0.30 -0.19 -4.35 -2.35 0.37 VXN 19.27 -1.96 21.23 43.45 18.41 Tr 1.75pc '22 101.23 0.37 -9.76 32.14 3600.00 -1025.00 105.64 101.20 29.68
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 391.80 -0.14 -0.67 -4.16 -3.15 -0.13 VDAX 16.66 -2.99 19.65 93.30 - Tr 0.75pc '23 100.61 0.40 -9.09 14.29 233.33 -1433.33 101.08 99.96 33.73
UK Repo 0.10 19-03-2020 0.25 0.75 0.25 Corporates($) 337.99 -0.27 -0.05 -1.04 -0.05 -1.04 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 0.125pc '24 99.11 0.52 -7.14 10.64 126.09 -1400.00 100.64 98.96 34.12
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 242.90 -0.08 -0.11 -0.52 -0.73 1.13 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 2pc '25 105.47 0.58 -4.92 5.45 93.33 -825.00 122.49 99.56 38.33
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 255.50 -0.05 -0.10 -3.04 -1.27 -1.97 Tr 0.125pc '26 97.84 0.64 -4.48 3.23 88.24 3100.00 100.87 97.47 33.89
Gilts( £) 348.70 0.23 -0.57 -8.05 -4.72 -6.51 BONDS: BENCHMARK GOVERNMENT Tr 1.25pc '27 103.07 0.71 -4.05 -1.39 69.05 2266.67 108.49 102.44 39.34
INTEREST RATES: MARKET Global Inflation-Lkd 319.91 0.10 1.29 1.72 -1.57 6.60 Red Bid Bid Day chg Wk chg Month Year Tr 0.875pc '29 99.92 0.89 -2.20 -3.26 53.45 394.44 106.70 98.61 41.87
Over Change One Three Six One Markit iBoxx £ Non-Gilts 379.22 -0.09 -0.57 -3.98 -2.95 -0.67 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 132.00 1.06 -1.85 -3.64 41.33 211.76 145.27 130.34 38.71
Oct 14 (Libor: Oct 13) night Day Week Month month month month year Overall ($) 278.96 -0.27 -0.07 -2.00 -0.07 -2.00 Australia 11/22 2.25 102.44 0.05 0.00 0.01 0.01 -0.10 Tr 4.25pc '36 140.55 1.18 -1.67 -6.35 32.58 122.64 155.96 137.65 30.41
US$ Libor 0.07363 0.000 0.004 0.002 0.09025 0.12375 0.15675 0.26575 Overall( £) 353.16 0.14 -0.57 -6.96 -4.25 -4.94 05/32 1.25 95.82 1.68 0.06 0.15 0.15 0.72 Tr 4.5pc '42 159.51 1.28 -2.29 -8.57 25.49 80.28 179.20 154.49 27.21
Euro Libor -0.58129 0.009 0.008 -0.001 -0.57200 -0.56871 -0.54086 -0.48629 Overall(€) 247.79 -0.06 -0.12 -2.43 -1.14 -1.34 Austria 05/34 2.40 126.97 0.23 0.03 0.06 0.04 0.42 Tr 3.75pc '52 162.59 1.28 -2.29 -9.86 25.49 72.97 187.44 155.15 24.10
£ Libor 0.04000 0.001 -0.001 0.006 0.07125 0.12513 0.27250 0.53950 Treasuries ($) 255.27 -0.29 -0.07 -2.70 -0.07 -2.70 02/47 1.50 120.61 0.62 0.02 0.07 0.05 0.52 Tr 4pc '60 185.87 1.20 -2.44 -10.45 26.32 69.01 215.91 175.55 24.12
Swiss Fr Libor 0.000 -0.78240 -0.76320 -0.71320 -0.58000 FTSE Belgium 10/23 0.20 101.83 -0.70 0.01 0.00 -0.02 -0.03 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.000 -0.07300 -0.08250 -0.06250 0.06150 Sterling Corporate (£) - - - - - - Canada - - - - - - -
Euro Euribor
Sterling CDs
0.000
0.000
-0.56100
0.50000
-0.54800
0.63000
-0.52400
0.78500
-0.47300 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 03/24 2.25 103.62 0.72 0.07 0.10 0.07 0.43 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 783.15 20.75 - - -1.79 26.16 Denmark 11/22 0.25 100.95 -0.61 -0.01 -0.02 -0.05 -0.01
US$ CDs 0.020 0.16000 0.20000 0.26000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 11/30 0.10 117.73 -1.69 -0.02 0.01 -0.07 -0.34 Price Indices Day's Total Return Return
Euro CDs -0.010 -0.54000 -0.52000 -0.49000 Fixed Coupon Oct 13 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series Finland 04/23 1.50 103.39 -0.73 0.01 0.00 -0.02 -0.05
04/31 0.75 107.10 0.00 0.03 0.06 0.03 0.33 1 Up to 5 Years 86.55 0.04 2453.38 -0.81 -1.48 0.58
Short 7 Days One Three Six One Index change change change high low 2 5 - 10 Years 176.16 0.47 3648.41 -2.18 -4.61 0.90
Oct 14 term notice month month month year Markit iTraxx France 05/23 1.75 103.96 -0.67 0.01 0.00 -0.01 0.00
3 10 - 15 Years 206.86 1.05 4601.52 -3.19 -6.33 1.17
Euro -0.74 -0.44 -0.71 -0.41 -0.69 -0.39 -0.67 -0.37 -0.64 -0.34 -0.63 -0.33 Crossover 5Y 271.69 2.32 13.35 - 274.80 239.25 05/27 1.00 107.51 -0.32 0.03 0.03 0.01 0.18
4 5 - 15 Years 182.94 0.66 3884.16 -2.52 -5.05 1.02
Sterling 0.45 0.55 0.58 0.68 0.71 0.86 0.90 1.05 Europe 5Y 53.04 0.00 2.23 - 54.10 48.54 Germany - - - - - - -
5 Over 15 Years 353.49 2.71 5908.79 -5.47 -9.61 1.28
US Dollar 0.11 0.31 0.04 0.24 0.06 0.26 0.10 0.30 0.16 0.36 0.22 0.42 Japan 5Y 50.86 0.20 1.26 - 52.58 46.63 08/23 2.00 105.13 -0.76 0.01 0.00 -0.01 0.00
7 All stocks 178.20 1.34 3883.41 -3.34 -6.19 1.18
Japanese Yen -0.10 0.00 -0.10 0.00 -0.10 0.10 -0.10 0.10 -0.15 0.15 -0.15 0.15 Senior Financials 5Y 60.33 0.13 3.00 - 61.49 54.89 08/27 0.50 105.80 -0.48 0.03 0.05 0.03 0.21
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 08/50 0.00 91.01 0.33 0.03 0.07 0.04 0.42 Day's Month Year's Total Return Return
Markit CDX Greece 02/27 4.30 120.44 0.44 0.01 0.05 0.03 -0.56
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Oct 13 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 189.47 6.04 6.32 - 189.47 168.20
Ireland - - - - - - - 1 Up to 5 Years 312.45 0.10 0.40 2.50 2605.59 0.40 3.79
Nth Amer High Yld 5Y 314.83 6.68 10.11 - 314.83 291.98
- - - - - - - 2 Over 5 years 864.88 1.72 -3.52 3.81 6557.46 -3.52 4.18
Nth Amer Inv Grade 5Y 54.95 1.07 1.24 - 54.95 50.87
10/22 0.00 100.63 -0.61 0.00 0.00 -0.02 -0.03 3 5-15 years 525.30 0.62 -1.04 0.88 4210.67 -1.04 1.65
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.
Italy 10/23 0.65 102.14 -0.41 0.01 0.00 -0.01 -0.27 4 Over 15 years 1147.87 2.09 -4.33 4.77 8463.15 -4.33 5.00
11/25 2.50 110.37 -0.03 0.01 0.03 -0.01 -0.21 5 All stocks 767.03 1.54 -3.12 3.56 5926.71 -3.12 4.02
05/31 6.00 148.08 0.77 0.03 0.05 0.00 -0.03
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 03/48 3.45 135.47 1.76 0.03 0.06 0.03 0.15 Yield Indices Oct 13 Oct 12 Yr ago Oct 13 Oct 12 Yr ago
Japan 04/23 0.05 99.94 0.09 0.01 0.00 0.01 0.03 5 Yrs 0.70 0.74 -0.08 20 Yrs 1.35 1.47 0.77
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
09/27 0.10 100.92 -0.05 0.01 0.03 0.01 0.03 10 Yrs 1.06 1.14 0.28 45 Yrs 1.17 1.31 0.71
Crude Oil† Oct 81.33 0.86 Corn♦ Dec 515.50 4.25 Oct 13 Oct 13 Prev return stock Market stocks
09/34 1.40 115.24 0.21 0.01 0.02 0.01 -0.02 15 Yrs 1.27 1.37 0.60
Brent Crude Oil‡ 83.84 0.52 Wheat♦ Dec 724.00 6.25 Can 4.25%' 26 126.81 -0.855 -0.884 -0.22 5.25 - -
12/49 0.40 93.31 0.66 0.01 0.03 0.01 0.05
RBOB Gasoline† Oct 2.43 0.03 Soybeans♦ Nov 1201.00 4.25 Fr 2.10%' 23 107.88 -2.195 -2.237 0.38 18.05 - -
Netherlands 07/23 1.75 104.40 -0.73 0.01 0.00 -0.01 -0.04 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Dec 314.60 2.70 Swe 1.00%' 25 121.86 -2.052 -2.082 0.41 34.98 - -
07/27 0.75 106.72 -0.40 0.03 0.05 0.03 0.18 Real yield Oct 13 Dur yrs Previous Yr ago Oct 13 Dur yrs Previous Yr ago
Natural Gas† Oct 5.75 0.08 Cocoa (ICE Liffe)X Dec 1815.00 -3.00 UK 1.875%' 22 108.26 -5.279 -5.248 0.03 15.74 - -
Ethanol♦ - - Cocoa (ICE US)♥ Dec 2576.00 -16.00 New Zealand 04/27 4.50 114.95 1.65 0.05 0.02 0.02 1.43 Up to 5 yrs -3.46 2.54 -3.41 -2.74 -3.79 2.55 -3.75 -3.08
UK 2.50%' 24 364.46 -3.504 -3.476 -0.02 6.82 - -
Uranium† - - Coffee(Robusta)X Nov 2133.00 1.00 05/31 1.50 95.23 2.05 0.05 0.03 0.04 1.49 Over 5 yrs -2.33 23.75 -2.26 -2.27 -2.35 23.80 -2.28 -2.29
UK 2.00%' 35 304.36 -2.650 -2.578 1.51 9.08 - -
Carbon Emissions‡ - - Coffee (Arabica)♥ Dec 211.00 3.00 05/31 1.50 95.23 2.05 0.05 0.03 0.04 1.49 5-15 yrs -2.79 9.15 -2.72 -2.85 -2.88 9.15 -2.81 -2.93
US 0.625%' 23 104.90 -2.550 -2.514 0.36 47.03 - -
White SugarX 512.40 -2.50 Norway - - - - - - - Over 15 yrs -2.29 28.39 -2.21 -2.20 -2.29 28.40 -2.22 -2.21
Diesel† - - US 3.625%' 28 133.96 -1.353 -1.323 0.43 16.78 - -
Sugar 11♥ 19.70 -0.15 - - - - - - - All stocks -2.35 21.59 -2.28 -2.28 -2.37 21.65 -2.30 -2.30
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 3122.50 67.50 Cotton♥ Dec 105.26 1.35 Portugal 10/22 2.20 102.97 -0.71 -0.03 -0.06 -0.08 -0.13 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 2500.00 80.00 Orange Juice♥ Nov 123.55 0.20 04/27 4.13 124.61 -0.30 0.01 0.04 0.02 -0.16 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 10015.50 297.50 Palm Oil♣ - - Spain 10/22 0.45 101.10 -0.59 0.00 0.01 0.01 -0.07 Gilt Closing Prices information contained herein is proprietary to
Lead 2292.50 58.50 Live Cattle♣ Oct 124.90 -0.08 BONDS: TEN YEAR GOVT SPREADS 11/30 1.00 123.55 -1.40 0.01 0.00 -0.03 -0.80 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 19360.00 390.00 Feeder Cattle♣ May 134.88 - Sweden 11/23 1.50 103.77 -0.30 0.00 -0.01 -0.01 0.03 accurate, complete or timely; and does not constitute investment advice.
Tin 37100.00 790.00 Lean Hogs♣ Dec 78.18 0.10 Spread Spread Spread Spread 06/26 0.13 120.88 -2.04 0.01 -0.08 -0.12 -0.73 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 3522.50 101.50 Bid vs vs Bid vs vs 06/30 0.13 120.40 -1.80 0.01 -0.10 -0.14 -0.33
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland - - - - - - - All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1757.65 -15.60 Oct 13 Month Year 02/23 4.00 106.37 -0.74 0.00 0.03 0.03 0.07 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.68 - - Netherlands -0.40 - -
Silver (US cents) 2252.00 -3.00 S&P GSCI Spt 584.95 9.53 61.46 United Kingdom - - - - - - - Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria 0.23 - - New Zealand 2.05 - -
Platinum 1029.00 0.00 DJ UBS Spot 104.47 6.73 43.09 Canada - - - Norway - - - 07/23 0.75 100.58 0.42 0.07 0.14 0.13 0.49 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 2120.00 76.00 TR/CC CRB TR 250.53 6.56 57.42 Denmark -1.69 - - Portugal -0.30 - - 07/27 1.25 102.60 0.79 0.07 0.13 0.12 0.71 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities LEBA EUA Carbon 58.91 -1.98 129.94 Finland 0.00 - - Spain -1.40 - - 07/47 1.50 99.68 1.52 0.07 0.12 0.12 0.65
Iron Ore 128.50 -8.45 LEBA UK Power 1048.00 -37.43 -39.60 Germany - - - Sweden -1.80 - - United States 03/23 0.50 100.41 0.21 0.03 0.05 0.03 0.05 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 232.50 6.00 Ireland - - - Switzerland - - - 03/27 0.63 97.27 1.14 0.02 0.11 0.05 0.66
Baltic Dry Index 5062.00 -144.00 Italy 0.77 - - United Kingdom - - - 04/32 3.38 146.71 - - - - -
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Japan 0.21 - - United States - - - 02/50 0.25 112.97 - - - - -
unless otherwise stated. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
14 ★ FINANCIAL TIMES Friday 15 October 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

USD Accumulating Class $ 13.19 - 0.02 0.00 Data Provided by

Dodge & Cox Worldwide Funds plc-Global Stock Fund
USD Accumulating Share Class $ 29.72 - 0.01 0.00
GBP Accumulating Share Class £ 35.78 - -0.18 0.00
GBP Distributing Share class £ 24.46 - -0.13 0.92

abrdn Capital (CI) Limited (JER)

EUR Accumulating Share Class
GBP Distributing Class (H)
€ 38.49
£ 14.28
-
-
-0.21 0.00
0.00 0.69
Franklin Templeton International Services Sarl (IRL) Mirabaud Asset Management (LUX)
Slater
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
Aberdeen Standard Capital Offshore Strategy Fund Limited
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
USD Accumulating Share Class
GBP Accumulating Share Class
$ 38.96
£ 44.37
-
-
-0.13 0.00
-0.36 0.00
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Other International Funds
Franklin Emerging Market Debt Opportunities Fund Plc
www.mirabaud.com, marketing@mirabaud-am.com
Conviction based investment vehicles details available here www.mirabaud-am.com
Regulated
Investments www.morningstar.co.uk
GBP Distributing Share Class £ 26.83 - -0.22 0.84 Mir. - Glb Strat. Bd I USD $ 124.32 - 0.05 0.00
Data as shown is for information purposes only. No offer
Bridge Fund £ 2.3732 - 0.0134 1.34 Franklin Emg Mkts Debt Opp CHFSFr 15.01 - -0.03 -
EUR Accumulating Share Class € 43.58 - -0.37 0.00 is made by Morningstar or this publication.
Global Equity Fund £ 3.4987 - 0.0161 0.79 Franklin Emg Mkts Debt Opp GBP £ 9.73 - -0.01 5.16 Mir. - DiscEur D Cap GBP £ 214.56 - 3.35 0.00
GBP Distributing Class (H) £ 15.93 - -0.05 0.63 Mirabaud - UK Equity High Alpha £ 166.95 - 1.82 0.00
Global Fixed Interest Fund £ 0.9441 - 0.0020 4.56 Franklin Emg Mkts Debt Opp USD $ 17.09 - 0.01 5.61
Income Fund £ 0.6760 - 0.0034 3.26
Sterling Fixed Interest Fund £ 0.8731 - 0.0038 2.82

Guide to Data
UK Equity Fund £ 2.1529 - 0.0169 2.46
Ashmore Investment Management Limited (LUX) Polar Capital Funds Plc (IRL) Slater Investments Ltd (UK)
2 rue Albert Borschette L-1246 Luxembourg Regulated www.slaterinvestments.com; Tel: 0207 220 9460
FCA Recognised Automation & Artificial Intelligence CL I USD Acc $ 19.09 19.09 0.06 0.00 FCA Recognised
Ashmore SICAV Emerging Market Debt Fund $ 84.81 - 0.31 5.24 Slater Growth A Acc 839.09 839.09 2.63 0.00
The fund prices quoted on these pages are
Biotechnology I USD $ 41.81 41.81 0.29 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 205.73 - 0.71 0.42 GAM Slater Income A Inc 151.78 151.78 0.94 5.22
supplied by the operator of the relevant fund.
Emerging Market Stars I USD Acc $ 15.29 - 0.07 0.00
funds@gam.com, www.funds.gam.com Details of funds published on these pages,
Ashmore SICAV Emerging Market Total Return Fund $ 74.31 - 0.25 4.54 European Ex UK Inc EUR Acc € 13.00 13.00 0.03 0.00 Slater Recovery A Acc 397.47 397.47 1.13 0.00
Regulated including prices, are for the purpose of
Ashmore SICAV Global Small Cap Equity Fund $ 242.58 - 2.41 0.00 Financial Opps I USD $ 16.53 - -0.02 1.49 Slater Artorius 375.61 375.61 2.60 -
LAPIS GBL TOP 50 DIV.YLD-Na-D £ 110.38 - 0.01 2.91 information only and should only be used as a
Aegon Asset Management UK ICVC (UK) EM Active Equity Fund Acc USD $ 158.75 - 1.35 0.00 GEM Income I USD $ 14.73 - -0.02 0.00
3 Lochside Crescent, Edinburgh, EH12 9SA LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 109.18 - 0.69 0.91 guide. The Financial Times Limited makes no
EM Equity Fund Acc USD $ 160.60 - 2.13 0.00 Global Convertible I USD $ 16.30 16.30 0.04 0.00
0800 358 3009 www.aegonam.com
representation as to their accuracy or
EM Mkts Corp.Debt USD F $ 86.13 - -0.05 5.08 Global Insurance I GBP £ 7.90 - 0.01 0.00
Authorised Funds completeness and they should not be relied
EM Mkts Loc.Ccy Bd USD F $ 72.24 - 0.23 4.65 Global Technology I USD $ 92.21 - 1.07 0.00
Global Equity GBP B Acc £ 3.53 - 0.02 0.00 upon when making an investment decision.
EM Short Duration Fund Acc USD $ 109.34 - -0.23 0.00 Healthcare Blue Chip Fund I USD Acc $ 18.17 18.17 0.02 0.00
Healthcare Opps I USD $ 68.69 - 0.49 0.00 The sale of interests in the funds listed on
Dragon Capital
Income Opportunities B2 I GBP Acc £ 2.80 2.80 0.00 - these pages may, in certain jurisdictions, be
New Capital UCITS Fund PLC (IRL)
Japan Value I JPY ¥ 132.03 132.03 0.06 - restricted by law and the funds will not
www.dragoncapital.com Leconfield House, Curzon Street, London, W1J 5JB
Fund information:info@dragoncapital.com North American I USD $ 36.60 36.60 0.19 0.00 necessarily be available to persons in all
Genesis Investment Management LLP www.newcapitalfunds.com
Other International Funds FCA Recognised
UK Val Opp I GBP Acc £ 14.32 14.32 0.05 0.00 jurisdictions in which the publication
Other International Funds
Vietnam Equity (UCITS) Fund A USD $ 37.74 - 0.00 0.00 New Capital UCITS Funds
circulates. Persons in any doubt should take
Emerging Mkts NAV £ 7.21 - -0.16 1.38
appropriate professional advice. Data collated
New Capital China Equity Fund $ 274.02 - 5.12 0.00
Atlantas Sicav (LUX) by Morningstar. For other queries contact
Regulated New Capital Dynamic European Equity Fund € 152.74 - 1.60 0.00
reader.enquiries@ft.com +44 (0)207 873
American Dynamic $ 7439.33 7439.33 38.25 0.00 New Capital Dynamic UK Equity Fund £ 127.82 - 0.90 0.00
4211.
American One $ 7314.18 7314.18 -306.88 0.00 New Capital Global Alpha Fund £ 120.44 - 0.36 0.00
New Capital Global Equity Conviction Fund $ 235.02 - 1.77 -
Bond Global € 1548.49 1548.49 -1.88 0.00 The fund prices published in this edition along
New Capital Global Value Credit Fund $ 162.09 - 0.04 0.00
Eurocroissance € 1459.46 - -3.92 0.00 Polar Capital LLP (CYM) Stonehage Fleming Investment Management Ltd (IRL) with additional information are also available
Far East $ 1259.15 - -0.48 0.00 New Capital Japan Equity Fund ¥ 1810.34 - -13.36 0.00 www.stonehagefleming.com/gbi on the Financial Times website, www.ft.com/
Regulated
HPB Assurance Ltd New Capital US Growth Fund $ 505.48 - 3.53 0.00
European Forager A EUR € 221.36 - -6.60 0.00 enquiries@stonehagefleming.com funds. The funds published on these pages
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 New Capital US Small Cap Growth Fund $ 243.11 - 1.47 0.00 Regulated are grouped together by fund management
International Insurances New Capital Wealthy Nations Bond Fund $ 154.14 - 0.45 0.00 SF Global Best Ideas Eq B USD ACC $ 276.90 - 2.11 - company.
Aegon Asset Management Investment Company (Ireland) (IRL) Holiday Property Bond Ser 1 £ 0.47 - 0.00 0.00 SF Global Best Ideas Eq D GBP INC £ 308.14 - 1.65 -
1 North Wall Quay Dublin 1, Ireland +35 3162 24493 Holiday Property Bond Ser 2 £ 0.63 - 0.01 0.00 Prices are in pence unless otherwise
FCA Recognised
indicated. The change, if shown, is the change
Absolute Return Bond B GBP Acc 1165.17 - -0.03 1.61
on the previously quoted figure (not all funds
High Yield Global Bond A GBP Inc 513.50 - 0.71 4.49 update prices daily). Those designated $ with
High Yield Global Bond B GBP Inc 1106.33 - 1.60 5.23 no prefix refer to US dollars. Yield percentage
Private Fund Mgrs (Guernsey) Ltd (GSY)
Global Equity Income B GBP Acc 2291.03 - 5.76 0.00 figures (in Tuesday to Saturday papers) allow
Regulated
Global Equity Income B GBP Inc 1455.44 - -8.32 3.19 EdenTree Investment Management Ltd (UK)
Monument Growth 21/09/2021 £ 550.82 556.58 3.57 0.80 for buying expenses. Prices of certain older
lobal Equity Market Neutral Fund - B Acc GBP £ 12.91 - 0.02 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 insurance linked plans might be subject to
Superfund Asset Management GmbH
Authorised Inv Funds
Global Sustainable Equity B Acc GBP £ 31.25 - 0.25 0.00 Janus Henderson Investors (UK) www.superfund.com, +43 (1) 247 00 capital gains tax on sales.
Global Sustainable Equity C Acc GBP £ 31.78 - 0.25 - EdenTree Responsible and Sust S Dtd Bd B 99.23 - 0.07 0.98 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Other International Funds
Inv Grd Gbl Bond A Inc GBH 613.60 - 1.26 1.81 www.janushenderson.com Superfund Green Gold $ 1521.40 - 30.59 0.00 Guide to pricing of Authorised
Short Dated High Yld Bd B Acc GBP £ 11.33 - 0.01 0.00 Authorised Inv Funds Investment Funds: (compiled with the
Superfund Green Silver $ 1384.32 - 39.81 0.00
Short Dated High Yld Bd C Acc GBP (Hdg) £ 11.46 - 0.02 0.00 Janus Henderson Instl UK Idx Opps A Acc £ 1.09 - 0.01 2.44 assistance of the IMA. The Investment
Regulated
Strategic Global Bond A GBP Inc 1324.24 - 2.99 2.70 Superfund Green US$ $ 1167.75 - 0.47 0.00 Association, Camomile Court 23 Camomile
Blue Whale Investment Funds ICAV (IRE)
Strategic Global Bond B GBP Inc 751.89 - 1.73 3.45 www.bluewhale.co.uk, info@bluewhale.co.uk Prusik Investment Management LLP (IRL)
Street, London EC3A 7LL. Tel: +44 (0)20 7831
Enquiries - 0207 493 1331 0898.)
FCA Recognised - Ireland UCITS
OGM Oasis Crescent Global Investment Funds (UK) ICVC (UK) Regulated
Blue Whale Growth USD T $ 12.46 - 0.16 0.00 Ennismore Smaller Cos Plc (IRL)
Regulated Prusik Asian Equity Income B Dist $ 186.44 - 1.10 4.57 OEIC: Open-Ended Investment Company.
5 Kensington Church St, London W8 4LD 020 7368 4220 Similar to a unit trust but using a company
OGM Oasis Crescent Global Short Term Income Fund USD Class A Shares (Dist) $ 0.98 - 0.00 1.60 Prusik Asia Emerging Opportunities Fund A Acc $ 237.97 - 2.61 0.00
FCA Recognised
OGM Oasis Crescent Global Equity Fund USD Class A Shares (Dist) $ 37.78 - 0.12 0.12 Prusik Asia Fund U Dist. £ 256.56 - 0.58 0.00 rather than a trust structure.
Ennismore European Smlr Cos NAV £ 152.06 - -0.27 0.00
M & G Securities (1200)F (UK)
OGM Oasis Crescent Variable Fund GBP Class A Shares (Dist) £ 10.13 - 0.03 0.01
Ennismore European Smlr Cos NAV € 179.11 - -0.31 0.00 PO Box 9038, Chelmsford, CM99 2XF Different share classes are issued to reflect a
OGM Oasis Crescent Global Income Fund USD Class A Shares (Dist) $ 11.04 - 0.00 2.47
www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472 different currency, charging structure or type
Authorised Inv Funds OGM Oasis Crescent Global Low Equity Fund USD Class D Shares (Dist) $ 13.39 - 0.04 0.21
of holder.
M&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.22 - 0.00 2.17 OGM Oasis Crescent Global Medium Equity Fund USD Class A Shares (Dist) $ 14.64 - 0.04 0.04
M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 42.34 - 0.05 1.73 OGM Oasis Crescent Global Property Equity Fund USD Class A Shares (Dist) $ 9.73 - 0.10 0.56
Selling price: Also called bid price. The price
M&G Charity Multi Asset Fund Inc £ 0.90 - 0.01 3.88 at which units in a unit trust are sold by
M&G Charity Multi Asset Fund Acc £ 101.85 - 0.34 3.23 investors.
Purisima Investment Fds (CI) Ltd (JER)
Regulated
Ennismore European Smlr Cos Hedge Fd Buying price: Also called offer price. The
PCG B 341.06 - 1.25 0.00
Other International Funds
PCG C 332.62 - 1.22 0.00
price at which units in a unit trust are bought
NAV € 644.56 - -2.78 0.00 by investors. Includes manager’s initial
Toscafund Asset Management LLP (UK) charge.
Algebris Investments (IRL) Omnia Fund Ltd www.toscafund.com
Regulated Other International Funds Authorised Funds Single price: Based on a mid-market
Algebris Financial Credit I EUR € 192.24 - 0.20 0.00 Estimated NAV $ 664.29 - 18.82 0.00 Aptus Global Financials B Acc £ 4.92 - -0.04 -
Brooks Macdonald International Fund Managers Limited (JER) MMIP Investment Management Limited (GSY) valuation of the underlying investments. The
Algebris Financial Credit R EUR € 166.67 - 0.17 0.00 Aptus Global Financials B Inc £ 3.32 - -0.03 6.06
5 Anley Street, St Helier, Jersey, JE2 3QE Regulated buying and selling price for shares of an OEIC
Algebris Financial Credit Rd EUR € 107.57 - 0.11 4.42 +44 (0) 1534 700 104 (Int.) +44 (0) 800 735 8000 (UK) Multi-Manager Investment Programmes PCC Limited and units of a single priced unit trust are the
Algebris Financial Income I EUR € 182.16 - -1.62 - Brooks Macdonald International Investment Funds Limited same.
UK Equity Fd Cl A Series 01 £ 3130.97 3167.20 -55.27 0.00
Algebris Financial Income R EUR € 167.47 - -1.49 0.00 Euro High Income € 1.4908 - 0.0014 2.50 Euronova Asset Management UK LLP (CYM) Diversified Absolute Rtn Fd USD Cl AF2 $ 1740.15 - -5.86 0.00
Algebris Financial Income Rd EUR € 107.05 - -0.95 - High Income £ 0.8265 - 0.0028 3.77 Regulated Treatment of manager’s periodic capital
Diversified Absolute Return Stlg Cell AF2 £ 1629.09 - -5.65 0.00
Algebris Financial Equity B EUR € 146.89 - -1.78 0.00 Sterling Bond £ 1.5384 - 0.0047 2.06 Smaller Cos Cls One Shares € 61.44 - -1.47 0.00 Global Equity Fund A Lead Series £ 1808.38 1814.43 -44.75 0.00 charge: The letter C denotes that the trust
Algebris Financial Equity R EUR € 124.96 - -1.51 0.00
Brooks Macdonald International Multi Strategy Fund Limited Smaller Cos Cls Two Shares € 39.45 - -0.94 0.00 deducts all or part of the manager’s/
Algebris IG Financial Credit I EUR € 111.00 - 0.11 0.00
Brooks Macdonald Intl Multi Strat Bal A £ 0.9838 - 0.0021 - Smaller Cos Cls Three Shares € 19.93 - -0.39 0.00 Oryx International Growth Fund Ltd operator’s periodic charge from capital,
Algebris IG Financial Credit R EUR € 109.90 - 0.10 0.00
Brooks Macdonald Intl Multi Strat Bal £ 1.0000 - 0.0000 - Smaller Cos Cls Four Shares € 25.68 - -0.50 0.00 Other International Funds Toscafund Asset Management LLP contact the manager/operator for full details
Algebris Global Credit Opportunities I EUR € 129.32 - -0.04 0.00
Brooks Macdonald Intl Multi StratCauBalA £ 0.9922 - 0.0024 - NAV (Fully Diluted) £ 9.10 - -0.52 0.00 www.toscafund.com of the effect of this course of action.
Algebris Global Credit Opportunities R EUR € 127.07 - -0.04 0.00 Tosca A USD $ 426.72 - 13.71 0.00
Brooks Macdonald Intl Multi Strat Gr A £ 0.9969 - 0.0020 -
Algebris Global Credit Opportunities Rd EUR € 127.07 - -0.04 0.00 Tosca Mid Cap GBP £ 259.91 - -7.48 0.00 Exit Charges: The letter E denotes that an
Brooks Macdonald Intl Multi Strat Hi GrA £ 0.9934 - 0.0018 -
Algebris Core Italy I EUR € 163.95 - 1.24 0.00 Tosca Opportunity B USD $ 396.96 - -10.64 0.00 exit charge may be made when you sell units,
Cautious Balanced Strategy £ 1.3914 - 0.0033 0.00
Algebris Core Italy R EUR € 156.13 - 1.19 0.00 Marwyn Asset Management Limited (CYM)
Ram Active Investments SA Pegasus Fund Ltd A-1 GBP £ 61.15 - -0.46 0.00 contact the manager/operator for full details.
Growth Strategy £ 2.0874 - 0.0042 0.00 www.ram-ai.com
High Growth Strategy £ 2.9262 - 0.0053 0.00 Regulated
Other International Funds Time: Some funds give information about the
Marwyn Value Investors £ 329.72 - -6.14 0.00
US$ Growth Strategy $ 2.1183 - 0.0121 0.00 RAM Systematic Emerg Markets Eq $ 242.72 242.72 1.25 -
FIL Investment Services (UK) Limited (1200)F (UK) timing of price quotes. The time shown
Dealing Daily. Initial charge up to 2%
Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, KT20 6RP Orbis Investments (U.K.) Limited (GBR)
RAM Systematic European Eq € 575.45 575.45 7.39 - alongside the fund manager’s/operator’s
Callfree: Private Clients 0800 414161 28 Dorset Square, London, NW1 6QG RAM Systematic Funds Global Sustainable Income Eq $ 155.44 155.44 0.47 0.00 name is the valuation point for their unit
Broker Dealings: 0800 414 181 www.orbis.com 0800 358 2030 RAM Systematic Global Eq Sustainable Alpha $ 111.05 111.05 0.75 - trusts/OEICs, unless another time is indicated
OEIC Funds Regulated RAM Systematic Long/Short European Eq € 148.31 148.31 1.33 - by the symbol alongside the individual unit
The Antares European Fund Limited Fidelity American Fund W-ACC-GBP £ 62.17 - 0.59 0.00 Orbis OEIC Global Cautious Standard £ 10.89 - 0.02 0.02 RAM Systematic US Sustainable Eq $ 411.55 411.55 3.13 - Troy Asset Mgt (1200) (UK) trust/OEIC name.
Other International Fidelity Cash Fund Y-ACC-GBP £ 1.02 - 0.00 0.09 Orbis OEIC Global Balanced Standard £ 16.94 - 0.03 2.36 RAM Tactical Global Bond Total Return € 153.75 153.75 0.02 - 65 Gresham Street, London, EC2V 7NQ

The symbols are as follows: ✠ 0001 to

Orbis OEIC Global Equity Standard £ 21.35 - 0.04 1.90 RAM Tactical II Asia Bond Total Return $ 154.82 154.82 0.16 - Order Desk and Enquiries: 0345 608 0950
AEF Ltd Usd $ 564.45 - 3.25 0.00 FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 3.21 - 0.03 1.56
Orbis OEIC UK Equity Standard £ 10.59 - 0.05 2.27 Authorised Inv Funds
AEF Ltd Eur € 528.25 - 3.16 0.00 Fidelity Global Enhanced Income Fund W-ACC-GBP £ 2.14 - 0.01 3.61
CG Asset Management Limited (IRL) Authorised Corporate Director - Link Fund Solutions 1100 hours; ♦ 1101 to 1400 hours; ▲ 1401
25 Moorgate, London, EC2R 6AY Fidelity Global Focus Fund W-ACC-GBP £ 34.85 - 0.24 0.00
Trojan Investment Funds to 1700 hours; # 1701 to midnight. Daily
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 Fidelity Global High Yield Fund Y-ACC-GBP £ 15.84 - 0.01 4.84
Trojan Ethical O Acc 127.35 - 0.18 0.00
dealing prices are set on the basis of the
FCA Recognised Fidelity Japan Fund W-ACC-GBP £ 5.49 - -0.01 0.79
valuation point, a short period of time may
CG Portfolio Fund Plc Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 4.15 - 0.01 0.25 Trojan Ethical O Inc 127.11 - 0.19 0.00
elapse before prices become available.
Absolute Return Cls M Inc £ 140.14 140.14 0.22 1.25 Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.21 - 0.01 0.84
Historic pricing: The letter H denotes that the
Capital Gearing Portfolio GBP P £ 39017.42 39017.42 40.54 0.78 Fidelity Special Situations Fund W-ACC-GBP £ 41.79 - 0.11 1.43 managers/operators will normally deal on the
Short Dated Corporate Bond Fund Y ACC GBP £ 11.16 - 0.00 4.01
Ruffer LLP (1000)F (UK)
Capital Gearing Portfolio GBP V £ 189.75 189.75 0.19 0.78 price set at the most recent valuation. The
65 Gresham Street, London, EC2V 7NQ
Arisaig Partners Dollar Fund Cls D Inc £ 174.05 174.05 0.43 1.40 Fidelity Sustainable Water & Waste W Acc £ 1.26 - 0.01 0.53
Order Desk and Enquiries: 0345 601 9610 prices shown are the latest available before
Other International Funds Dollar Hedged GBP Inc £ 111.24 111.24 0.53 1.26 Fidelity Sustainable Water & Waste W Inc £ 1.25 - 0.00 0.54 Milltrust International Managed Investments ICAV (IRL) Authorised Inv Funds publication and may not be the current
Arisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 135.30 - 3.09 0.00 Real Return Cls A Inc £ 210.35 210.35 0.49 1.58 Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 - mimi@milltrust.com, +44(0)20 8123 8316 www.milltrust.com Authorised Corporate Director - Link Fund Solutions dealing levels because of an intervening
Arisaig Asia Consumer Fund Limited $ 134.22 - 3.32 0.00 Fidelity UK Select Fund W-ACC-GBP £ 3.67 - 0.01 0.76 Regulated portfolio revaluation or a switch to a forward
LF Ruffer Diversified Rtrn C Acc 102.31 - 0.46 0.00
Arisaig Global Emerging Markets Consumer Fund $ 17.48 - 0.40 0.00 Institutional OEIC Funds British Innovation Fund £ 121.92 - 2.89 0.00 WA Fixed Income Fund Plc (IRL)
pricing basis. The managers/operators must
LF Ruffer Diversified Rtrn C Inc 102.44 - 0.46 0.00 Regulated
Arisaig Global Emerging Markets Consumer UCITS € 12.85 - -0.01 - Europe (ex-UK) Fund ACC-GBP £ 7.77 - 0.07 0.57 MAI - Buy & Lease (Australia) A$ 103.45 - 0.50 0.00 deal at a forward price on request, and may
LF Ruffer European C Acc 910.61 - 9.43 0.85 European Multi-Sector € 121.17 - 0.48 2.90
Arisaig Global Emerging Markets Consumer UCITS STG £ 14.50 - -0.10 - MAI - Buy & Lease (New Zealand)NZ$ 91.20 - -6.06 0.00
LF Ruffer European C Inc 164.80 - 1.70 0.85
move to forward pricing at any time. Forward
Arisaig Latin America Consumer Fund $ 27.11 - -0.02 - Milltrust Global Emerging Markets Fund - Class A $ 120.62 - 0.25 0.00
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Friday 15 October 2021 ★ FINANCIAL TIMES 15
16
Medieval epic in thrall to men and their beards
FILM
Danny
Leigh
D
id Ridley Scott’s weird,
occasionally entertaining,
often deeply misjudged
The Last Duel mean to draw
this much attention to facial
hair? You assume not. The marketing
implies a historical epic made to speak
to the lessons of #MeToo — a takedown
of patriarchy from a creative team
including some of the most successful
men in Hollywood. Yet here we are,
wondering uneasily if Matt Damon
actually grew his beard — a hostile take-
over of the chin — or if it called for glue?
We open in Paris, 1386. Damon plays
Jean de Carrouges, one of two noblemen
about to take part in the final duel ever
sanctioned by French royalty. (The tale
comes broadly from historical record.)
His opponent is squire Jacques Le Gris
(Adam Driver). Among the crowd, the
camera picks out Ben Affleck, co-writer
of the film with Damon and Nicole
Holofcener. On screen, Affleck is the lib-
ertine Count Pierre d’Alençon, another
wonder of hair and make-up. (Try not
to think of the Ben Stiller comedy Zool-
ander and especially Mugatu, Will Fer-
rell’s crazed fashion designer.)
Scott makes the joust a vivid spectacle
— male rivalry rendered gruntingly
physical. But the fight is meant to be no
more than a bookend. The real sub-
stance — in theory — is its cause, the
rape of Marguerite de Carrouges (Jodie
Comer) by Le Gris, once her husband’s
friend. He denies all. Marguerite’s life is
in the balance too. Powerfully and sensi-
tively, the film will give her voice. Well,
that’s the plan.
The script is a riff on Rashomon, the
story told through multiple perspec-
tives, each principal recounting their
version of events. Unlike Kurosawa’s
masterwork, the timeframe extends to
★ FINANCIAL TIMES
ARTS
Above: 16 years of back-story. Memories differ,
Adam Driver as of course. Damon’s de Carrouges
Jacques Le Gris presents himself as a fearless warrior
and Matt Damon undermined by social climber Le Gris.
as Jean de Driver’s gifted charmer sees it other-
Carrouges wise. In his telling, he simply kept
prepare to do Affleck’s Count company in sexual
battle in ‘The adventures and looked after his
Last Duel’. accounts. Orgies and bookkeeping: men
Right: Lashana have built careers on less. And this is
Lynch in ‘ear certainly a tale of men.
for eye’ Until — finally — Marguerite has her
say. Her testimony is wrenching.
That she would be so long drowned
out only reflects the world in which the
film unfolds. As it makes clear, a woman
of this age spent her life mute — a chat-
tel. If it needs a spoiler warning, here
it is: every man in sight is a bastard.
And yet they dominate the screen —
outsize characters played by big-name
male stars seemingly engaged in a pri-
vate bet as to how little scenery they can
leave unconsumed. Even those beards
hog the spotlight. Such is the knot in
which the film entangles itself — a movie
where a woman speaks her truth but
barely gets a word in edgeways. To take
a charitable view, the goal might be to
mirror gender relations through history.
Two-thirds of 152 minutes is a long time
to make the point.
Anyway, the charity might be mis-
placed. Sceptics will note the sheer
gusto of Damon and Driver’s sections of
the story, the film ripening from medie-
val France served à la old-school Holly-
wood into a camp burlesque of swirling
cloaks, soapy intrigue and jaw-dropping
dialogue. “Get in here,” Affleck com-
mands. “Take your pants off.”
In isolation, some of this is not unen-
joyable. Whatever else, Scott — return-
ing in part to the stuff of his 1977 debut,
The Duellists — makes great full-fat cin-
ema. But frankly — even having hired
Holofcener — there is something very
odd about the match of form and con-
tent, a wildly florid movie that bills itself
as a scalding indictment of violence
against women. Franker still, given that
Affleck and Damon made quite so many
films for Harvey Weinstein, you might
expect a certain measurement of tone.
What measurement went on here, who
knows? The result is off the charts.
In cinemas from October 15
Andy Warhol was not known for his phi-
lanthropy, but he left a gift to film-
maker Todd Haynes. What better motif
for his new documentary The Velvet
Underground than Warhol’s 1966 film
of co-band leaders Lou Reed and John
Cale, each studiedly gazing into the
camera, as if wholly aware the result
would one day end up in a movie about
their greatness? Haynes’s ardent group
history extends to the other members
too: autodidact Moe Tucker, shy Ster-
ling Morrison, the daunting Nico. But
that tense central double act is drama
from the off — Reed the vicious
rock’n’roller, Cale the languid Welsh
avant-gardist. It was two plus two, the
latter says, that equalled seven — the
band who famously sold no records and
remade rock music doing it.
True to the spirit of his subjects, Hay-
nes offers no beginner’s guide. Instead,
he opens with a quote from Baudelaire
and the kinky screech of BDSM anthem
“Venus in Furs”. The music is cele-
brated, of course. But the film does
more than illustrate the greatest hits.
Haynes uses the songs the way a film-
maker should, slicing them up to accent
his story. So while “I’m Waiting for the
Man” comes and goes, a chunk of screen
time is devoted to Reed and Cale’s
obscure — and irresistible — pre-Velvets
collaboration “The Ostrich”.
The start of it all is what pushes the
movie’s buttons. Some of that may be
expedience. The band had a recording
life of just three years — and while their
time with Warhol at the Factory is
diligently covered, most of that story
has been told already.
Instead, the film dives deep into the
pre-counter-culture of early Sixties
New York, a hip simmer of sexual and
artistic revolt. Only here, Haynes sug-
gests, could his stars have collided: Reed
exiting suburbia after electroshock
treatment; Cale in flight from his own
demons. The anger in their glamour was
real. (The drugs didn’t help.) He was
dark, an acquaintance says of Cale.
Unpleasable, Cale calls Reed.
The last time the director re-told
musical history, the result was I’m Not
There, his headspinner of a Bob Dylan
biopic, six different actors playing the
subject. Now the experimentation is
more modest — whirring split screens to
frame a conventional mix of archive and
talking heads.
The most bracing moments come via
Warhol again — fragments from the
band’s multimedia stage show that once
drew Jackie Kennedy, Rudolf Nureyev
and various authentic juvenile delin-
quents. For a moment you feel the chaos
in the air — before Haynes gently guides
us towards the next exhibit.
In UK cinemas and on Apple TV Plus now
Words are dangerous in ear for eye,
writer and film-maker debbie tucker
green’s stark adaptation of her own
stage play. (The lower-case letters are
an established signature.) Take “the
Talk” with which we begin — that
phrase often capitalised, a sad rite of
passage in African American life, par-
ents teaching children what to do if
(when) stopped by police. A mother
warns her son of the Catch-22. To speak
at all is to be aggressive — to not speak,
evasive. Later in an electric first act that
criss-crosses the Atlantic, characters
lost in serial confrontations, a parallel
Friday 15 October 2021
The Last Duel
Ridley Scott
AAAEE
The Velvet Underground
Todd Haynes
AAAEE
ear for eye
debbie tucker green
AAAAE
Best Sellers
Lina Roessler
AAEEE
scene plays out in London. “Your mouth
will get you into trouble,” an arresting
officers tell a panicked young woman.
tucker green has made one film
before, the under-seen Second Coming. It
found an ordinary black London family
caught in the overlap of domestic drama
and metaphysics. In her latest work,
issues of race and politics have the force
of things too long suppressed.
The play was first performed in 2018.
On film it has been honed, the camera
agile. The second act focuses on a single
conversation between a white professor
of criminology and a black fellow aca-
demic (Lashana Lynch, also currently in
Bond movie No Time To Die). The former
complains of being shouted down while
doing all the talking. In the third, dispas-
sionate voices flatly narrate historical
laws of slavery and segregation.
Language and power conspire
throughout. But that dizzying opening
with its loop of policing and protest is
where tucker green most brilliantly
spotlights the small print of words — the
gulf between progress and change.
On BBC2 in the UK on October 16, and then
available on BBC iPlayer
Couples come odder than Michael Caine
and the archly millennial Aubrey Plaza
— but not many. The counter-intuitive
match-up at the heart of new comedy
Best Sellers is so inspired as to surely be
a prelude to excellence.
The appetite is whetted by their
entrances. Cast as grandly unproductive
cult novelist Harris Shaw, Caine answers
his phone with a bark: “He’s dead!” In
uptown Manhattan, Plaza’s hard-up
publisher Lucy Stanbridge does a per-
fect gangling double take at a bookshop
window filled with copies of a literary
sensation who has one thing in common
with all literary sensations: not having
been published by her. The red ink is
lapping. Her last hope is Shaw, foul-
mouthed and nihilistic but with a bat-
tered manuscript that becomes a come-
back novel. A US book tour follows.
“I won’t do the bloody tour,” Caine
grouses, and for a moment you hear the
curt nonchalance of Harry Palmer and
Jack Carter. The film should have lis-
tened. Instead, the two leads set out on a
road movie that grows more inert the
further it travels, filled with stock digs at
social media and nonsense supposed
British profanity.
Worse still is the sentimentality.
The film takes two masters of dead-
pan and makes them work with tear-
stained treacle. Rather than bounce off
each other, Plaza and Caine slide
defeated side-by-side down the face of
the movie.
On digital platforms in the UK from
October 18
Left: Michael
Caine as cult
novelist Harris
Shaw in
‘Best Sellers’.
Below: from left,
John Cale,
Sterling
Morrison and
Lou Reed of
The Velvet
Underground,
whose history is
explored in
Todd Haynes’s
new film
Nat Finkelstein
Friday 15 October 2021
The Biden administration has announced measures to ease bottlenecks at ports that have already caused
shortages and could complicate Christmas. But the problems in the logistics system are deep-seated.
‘Disruption on top of disruption’
S ~40
ince the pandemic started to
wane, Americans have been
on an extraordinary buying
spree. One measure of this is
the daily tally of container
ships idling outside the congested ports
of Los Angeles and Long Beach — the
entry point for about 40 per cent of
goods imported into the US.
The queue of ships stacked high with
brightly-coloured containers reached a
record of 73 on September 19 and by last
weekend still stretched as far as the eye
could see — frustrating retailers and
becoming a national symbol of an out-
dated and overwhelmed supply chain.
The ports’ longtime inability to match
the round-the-clock, seven-day-a-week
operations of their Asian counterparts
has been a source of frustration for
transportation officials in President Joe
Biden’s administration, which this week
unveiled a series of measures to ease the
congestion at the western hemisphere’s
largest port complex — and keep the US
economic recovery on track.
The White House said it had
secured pledges from private sector
heavyweights such as Walmart, UPS
and FedEx to extend their working
hours. Crucially, it also won commit-
ments from the International Long-
shore and Warehouse Union to add
shifts and move toward a 24/7 work
schedule at its operations in California.
The question is how quickly these
measures will be able to improve the
movement of goods through a complex
nationwide network that is strained to
breaking point. The US is facing a short-
age of warehouse space and truck driv-
ers, and shifting to 24/7 operation will
require enormous co-ordination
between the publicly operated ports
and private sector groups, including
large retailers and freight companies.
Last week, Gene Seroka, executive
director of the Port of Los Angeles, told
the Financial Times that he doubted
that 24/7 operations could work with-
out the co-operation of a wide cast of
private sector operators.
“If a day comes when we can open
24/7, and other parts of the supply chain
orchestra are all doing the same thing,
that would be great for all of us,” he said.
“But you’ve got limitations today.”
Biden administration officials and the
ports argue that the commitments from
private sector companies — which also
include Target, Home Depot and Sam-
sung — will help ease those limitations.
However, the extra 3,500 containers
those companies are now expected to
move each week account for a small
fraction of the total passing through the
port, according to logistics specialists.
The stakes are high. This year’s supply
chain pressures have had ripple
effects throughout the economy that are
hurting US retailers and manufacturers.
Nike has warned of inventory short-
ages. In an announcement that cut its
stock by a fifth, the retailer Bed Bath &
Beyond called the supply chain chal-
lenges it faced “unprecedented”. Some
large retailers, including Walmart and
Costco, have resorted to chartering
ships.
There is a sense of urgency as the
Christmas gift-giving season looms.
Logistics, labour and manufacturing
headaches combined are likely to add
another $223bn to US retailers’ costs
this holiday season, Salesforce esti-
mates. That in turn could push up the
prices consumers pay for their presents,
assuming they are available to buy.
By Christopher Grimes and Andrew Edgecliffe-Johnson
Steve Denton, chief executive of
Ware2Go, whose software helps retail-
ers find warehouse space, says the
White House initiative will not resolve
all of the bottlenecks merchants are
struggling with. As well as packed ware-
houses, “you’ve got a lack of truck driv-
ers and the trains are running at full
capacity,” he says. “You’ve got record
levels of inventory in the country
already. That inventory’s got to get
cleared out to make room first. Where’s
it all going to go?”
Similar supply chain problems are
being felt worldwide. More than 20
months since the initial outbreak of
coronavirus forced China to close facto-
ries and idle the world’s mightiest
export machine, the global flow of goods
remains a mess. In Europe, German
industry has been hit by shortages of
everything from computer chips to the
metals used in electric car batteries,
while the UK has endured long queues
and frayed tempers at petrol stations
because of fuel shortages.
“I’d say the market we’re in today has
never experienced this, at least in my
lifetime. There’s probably more idling in
the Pacific than we’ve ever seen before,”
says Brian Whitlock, a senior director at
Gartner. “We’ve seen disruption on top
of disruption on top of disruption and
we’re not able to mend the networks
before the next disruption comes.”
The strength of consumer demand in
the US compared with Europe means
that the country’s biggest gateways are
disproportionately clogged. And the
biggest chokepoints by far remain the
Los Angeles and Long Beach ports,
which have faced the double-barrelled
impact of record shipping container vol-
umes and the surge in online shopping
since the outbreak began.
“The strength of the American con-
sumer is on display here every single
day,” Seroka said.
According to Michael Farlekas, chief
executive of E2open, whose software
books a quarter of the world’s ocean
freight, the ports are the biggest bottle-
necks in the US supply chain right now.
“That throughput is fixed in nature.
It’s fixed by geography and by capacity,”
he says, pointing out that while con-
tainer ships have grown ever larger, US
ports’ ability to offload them has not
kept pace. The measures announced by
the White House will “require more
labour price increases in the form of
enhanced wages and benefits”, he says.
The supply chain disruptions have
contributed to rising US inflation — con-
sumer prices rose 5.4 per cent in Sep-
tember, the highest level in 13 years —
and prompted new questions about the
vulnerabilities of just-in-time supply
chains. Some experts believe the
moment may finally be at hand for
“nearshoring”, or moving production to
★ FINANCIAL TIMES
FT BIG READ. US ECONOMY
Container ship markets closer to home, such as Mexico.
congestion Alarmed by the mounting supply
outside Los chain problems, the Biden administra-
Angeles and tion in June created a task force to craft a
Long Beach, response. John Porcari, a former trans-
above. The port official in the Obama administra-
queue of ships
waiting to get
tion, was appointed to work with the
ports to clear the bottlenecks.
into the twin In an interview before the White
ports reached a House announcement, Porcari said the
record of 73 on ports should have been moving towards
September 19. round-the-clock operation long before
Below: parents the pandemic, and emphasised the need
are advised to for a heightened level of co-ordination
get their chosen
Christmas gift
between large retailers, trucking com-
panies, warehouses, railroads and
today ‘because it freight companies. Although he said it
might not be was not reasonable to believe the ports
there tomorrow’, could “flick a switch” and move to con-
according to tinuous operation, he was of no doubt
James Zahn of that it must happen.
the Toy Insider
FT montage/Getty
“The reality is much of the world is in
a 24/7 environment and ships are arriv-
‘The reality is that ships
are arriving on a 24/7
schedule. It needs to be
more of a 24-hour, seven-
day process [in the US]’
ing on a 24/7 schedule,” he said. “It
needs to be more of a 24-hour, seven-
day process if we’re going to meet the
challenges of the 21st century.”
‘Exorbitant, extortionary rates’
The crunch faced by LA’s ports, just as
stores are counting on them to ensure
that shelves are not empty for their peak
selling season, has its origin far earlier in
the global supply chain.
Pacific shipping patterns had already
been upended by the Trump adminis-
tration’s trade battles with China, as
importers raced to bring goods in before
new tariffs bit and diversify their suppli-
ers. Then Covid-19 hit, first closing fac-
tories in China and then scrambling
consumers’ buying patterns.
At the Port of Los Angeles, shipments
in the fourth quarter of 2019 fell 16 per
cent compared with the year ago-period
due to the Trump tariffs, followed by a
19 per cent year-on-year decline in the
first five months of 2020 owing to the
Covid-19 outbreak. “Companies dra-
matically lowered their production
expectations going forward, expecting a
prolonged global slowdown,” says Farle-
kas. “It was pretty rapid before you saw
that turn around to high demand.”
Pumped up by government spending,
consumer demand soared from the lows
of April 2020 and has remained unusu-
ally high. Mario Cordero, executive
director of the Port of Long Beach, made
clear before the White House announce-
ment that demand was the critical
factor that would determine whether or
not the delays at his facility start to ease.
Right now, demand is red-hot in the
US ahead of Christmas. Retailers
pushed up their holiday orders to
account for delays, resulting in skyrock-
eting costs to deliver goods. Bed Bath &
Beyond said it had budgeted for con-
tainer costs to double in the last quarter;
instead they jumped 150 per cent.
“People are paying exorbitant, extor-
tionary rates for containers, but you
could still get merchandise here. But
you won’t get all you wanted, when you
wanted it, where you wanted it, for the
same costs,” says Joel Bines, co-head of
AlixPartners’ retail consulting practice.
“No one has ever seen this before,”
says James Zahn, editor of a consumer
gift guide called the Toy Insider. Domes-
tic distribution problems have com-
pounded port delays to create regional
shortages, he says, making the task of
finding in-demand items such as He-
Man action figures and Squishmallows
plush toys “an absolute crap shoot”.
Bigger toys, such as the $200-plus
OMG House of Surprises doll’s house,
have been particularly affected, Zahn
adds, because only so many of them can
fit in a container.
If a parent finds the toy their child
most desires, he advises: “Get it today
because it might not be there tomorrow.
There’s no way to tell if this stuff’s going
to get restocked by the holiday season.”
Nearshoring’s moment?
Coping with consumer demand —
including the rapid turnround times
expected by online shoppers — has been
a shock to the southern California ports’
systems. “It’s been a wake-up call,”
admitted Cordero, who said his port had
already taken other measures to ease
the crisis in the past year.
To get cargo off ships even when
trucks and trains were not available, for
example, Long Beach initially desig-
nated a 17-acre plot as a staging area for
containers. It has already had to expand
that space to 64 acres.
Cordero wants to see more of “an
Amazon state of mind in terms of how
Container ships at Los Angeles and Long Beach
port hit record levels
Total daily number of all ships in port and container ships
anchored
161 total ships in port on Sep 25
All ship types in port
73 anchored container ships on Sep 19
Anchored container ships
Jan 2021
Notes: Data from December 12, 2020-October 11, 2021; ships ‘in port’ include
all ships anchored, at berth and in drift areas
Source: Marine Exchange of Southern California
Southern California ports’ share of mainland
US trade imports has fallen
West coast ports’ share (%) of all US containerised
import tonnage
Ports of Seattle and Tacoma Port of Oakland
Ports of Los Angeles and Long Beach
July 2020 July 2021 July 2020 July 2021
Worldwide trade East Asian trade
Sources: US Commerce Department; Pacific Merchant Shipping Association
US consumer spending quickly rebounded
from its April 2020 low
Monthly US personal consumption expenditure
($bn, seasonally adjusted rate)
2020
Source: Federal Reserve Bank of St Louis
17
% we create more efficiency and move-
Of goods imported ment,” agreeing with his colleague at the
into the US enter neighbouring Port of Los Angeles that
through Los Angeles the business should run 24 hours a day,
and Long Beach ports seven days a week. “The ports of origin
are 24/7,” he said, referring to the Asian
$223 bn ports where most of the ships start out.
“As the port of destination we need to
Retailers’ estimated
extra costs caused by start thinking like the ports of origin.”
logistics, labour and With warehouses near the ports
manufacturing already at full capacity, however, it is
headaches during the unclear where any additional contain-
holiday season ers unloaded in extra hours would go,
and finding enough people willing to
5.4 % work night shifts and Sundays looks
challenging in a stretched jobs market.
Annual inflation in US
consumer prices in In recent weeks Long Beach has
September, the experimented with operating 24 hours a
highest level in 13 day on weekdays, up from 16, but there
years
are still shortages of truck drivers on
whom it counts to pick up the cargo.
$5,000 Here again, tight labour conditions
are to blame. Chris Brooks, senior vice-
Bonus for LA-area
lorry drivers signing president for human resources at Old
up with Old Dominion
Freight Line
Dominion Freight Line, says he is
aggressively recruiting for truck drivers
to fill about 360 openings in the LA area
and hundreds more across the US. Not-
ing that there was a nationwide shortage
of about 60,000 truck drivers across the
US even before the pandemic, he is
offering drivers in the LA area a signing
bonus of $5,000 and has increased
employee referral fees to $1,000.
“We’ve greatly benefited by higher
than usual business levels with the eco-
nomic recovery and the high demand in
ecommerce,” he says. “We’re hiring lots
of employees to meet that demand and
with [the port bottlenecks] we believe
these business levels are going to carry
through the winter and into next year.”
America’s importers are already
150 spreading their bets, leading to surging
traffic into ports from Seattle to Savan-
100 nah. Spending another 10 days on the
water to divert a shipment from China
50
to an east coast port still makes little
sense, says Sean Whitehouse, an Accen-
ture managing director focused on retail
0 supply chains. Instead, “retailers are
Oct starting to look at different sources of
supply, bringing products in through
east coast ports so they don’t have a
problem. That’s not a quick fix.”
The crises affecting so many links in
the global supply chain have renewed
talk of US manufacturers bringing some
of the production that they now do in
Asia back to the US, or at least closer to
it. Farlekas says his clients have become
60 more wary of putting almost all of their
50 manufacturing in a country such as
40 China. “Instead of having 90 per cent [of
30 production] in one geography I’m going
to have 30/30/40 — split it up between
20 three geographies,” he says.
10 Long Beach’s Cordero, too, said the
0 cost of shipping has “accelerated” a
nearshoring conversation that had been
triggered by the trade wars. He said Bra-
zil and Mexico could become more
important sources of supply for US com-
panies, but warned: “I don’t see a short-
term change. China will continue to be
the epicentre of manufacturing.”
16,000 One other unknown still lurks on the
waterfront, however, as the west coast
15,000 ports face contract negotiations with the
International Longshore and Ware-
14,000
house Union next year. Any labour stop-
page could cause further chaos, setting
back the Biden administration’s efforts.
13,000
“We seem to have a mutual goal of not
having a prolonged discussion here. I’d
12,000
have to be optimistic,” Cordero said. But
2021
he added: “There’s a lot at stake.”
Additional reporting by Caitlin Gilbert
18
FRIDAY 15 OCTOBER 2021
Better a lighter Biden
bill than none at all
White House must get its social reform passed so it can move forward
Joe Biden can hardly bring himself to
name them. “Two people,” is how the
exasperated US president refers to the
senators who stand between him and
redistributive legislation. In their tem-
peraments, their home states and their
qualms with the Build Back Better bill,
West Virginia’s Joe Manchin and Ari-
zona’s Kyrsten Sinema are too different
to be a team. By pressing for less spend-
ing, though, each is denying Biden his
first big win since the spring.
Some Democrats have come close to
suggesting that “Sinemanchin” have
no right to block the united will of a
president and his entire party. That is a
constitutional nonsense, and has also
licensed the increasingly ugly hound-
ing of Sinema in particular.
It is on substance, not process, that
liberals have a case. Manchin favours
specific help for the poor over universal
“entitlements”. But the former can cre-
ate the bureaucracy and perverse
incentives that come with means-test-
ing. The universal state, by giving all
citizens something, is not just simpler.
It is also less vulnerable to political ero-
sion over time. Welfare, for example,
was pared back to loud and sometimes
vindictive applause in the 1990s. By
contrast, efforts to reform social secu-
rity have shattered entire presidencies.
As ruggedly self-reliant as it imag-
ines itself to be, when the US enacts an
entitlement, it tends to like it. Pan-
demic relief is the most topical case in
point. Had the cheques not been so
widely available, the political atmos-
phere around such a large intervention
over the past 18 months would have
been foul.
As far as possible, then, Biden’s bill
should hew to the universal principle.
This is especially true of the child tax
credit that he wants to make near-com-
prehensive. The US is uncommon
among rich countries in the patchiness
of its fiscal help for children. Its rates of
Policing the ‘wild west’
of UK insolvencies
A predicted wave of business failures should prompt an overhaul
Accountancy firms have rightly faced
scrutiny for failing to spot red flags that
led to a wave of UK corporate collapses,
from Carillion to Thomas Cook. Sweep-
ing audit reforms are supposedly in
train. Yet one area of the firms’ busi-
ness still seems vulnerable to cowboys:
insolvency. One partner said auditors
and accountants were “saints by com-
parison”. The mind boggles.
A parliamentary inquiry’s chair
came to the same conclusion, high-
lighting a “wild west” rife with conflicts,
where insolvency practitioners can
wield great powers, such as seizing
assets, with little consequence if they
abuse those powers. With a wave of pan-
demic-related insolvencies predicted,
there must be an urgent overhaul.
This week, a tribunal revealed its
findings into the Silentnight case,
brought by the Financial Reporting
Council. KPMG already earned a £13m
fine over the episode, and a restructur-
ing partner £500,000. The tribunal’s
reasoning makes for shocking reading:
the firm helped push Silentnight into
insolvency in 2011, allowing a private
equity firm that KPMG was courting as
a client, HIG Capital, to buy the com-
pany without the burden of its £100m
pension scheme. The twist to the tale is
that HIG bought KPMG’s insolvency
arm this year, with firms under wider
pressure to root out conflicts. Deloitte
has also sold its insolvency unit.
The case underscores an industry
requiring reform. Practitioners must
serve many interests that may not
align, from those of the troubled com-
pany, to creditors, to the state, to share-
holders. The parliamentary inquiry
found differing interests are not always
appropriately managed.
The main problem arises because it
tends to be a company’s secured credi-
tors — often a high-street bank — that
direct a practitioner’s appointment,
normally in secretive circumstances.
child poverty are duly woeful. If, as
precedent implies, the Republicans
win control of Congress next year, the
expanded credit might be the most
important thing Biden legislates. Only
a brave and perhaps masochistic politi-
cian would try to undo it thereafter.
“As far as possible”, however, is more
than a standard qualifier here. The
political reality is that the Democrats
failed to win the clear Senate majority
that some polls had promised last year.
This means “two people” can insist on
savings in the proposed spending.
Wider concerns about inflation in the
economy add weight to their argu-
ments. To cut the bill far below the
Democrats’ starting offer of $3.5tn
(Manchin, in what is itself a bargaining
gambit, suggests $1.5tn) entails painful
compromise. If that means a less
sweeping bill, then Democrats should
accept it as better than no bill at all.
Free childcare, more generous col-
lege grants, clean energy subsidies: in
such a wide-ranging bill, opportunities
for pruning do exist. In fact, politically,
more focused bill legislation might
be easier to communicate to voters
than the present mélange. The current
package has everything but definition.
The advantages of compromising to
pass the bill do not end there. The twin
questions of infrastructure and social
reform have occupied the White House
for most of its first year. Neither ranks
among voters’ top concerns, which
include the ongoing pandemic and the
precarious economy. And so, in recent
weeks, Democrats have been feuding
among themselves about what many
Americans view as substantial but
ultimately secondary matters.
This cannot last if Biden is to revive
what has become a beleaguered presi-
dency. An enacted bill will at last free a
White House that has all too many
claims on its time. The point is to build
back better, not perfectly.
This is despite the practitioner usually
being paid from proceeds recovered
from the company. Compounding the
issue is banks’ use of “panels” of practi-
tioners, who, in return for steady work,
sign up to commitments covering eve-
rything from hourly rates to pledges
not to litigate against the banks, the
inquiry found.
Potential conflicts extend to insol-
vency practitioners’ oversight. The
government’s Insolvency Service out-
sources regulation to professional bod-
ies such as the ICAEW, to which practi-
tioners pay membership fees. These
bodies’ dual duty, to both police and
represent members, is undesirable. In
other professions, like law, these duties
have long been split. Moreover, these
bodies only have limited powers as
they oversee individuals, not firms,
leading to derisory penalties. The
meaty Silentnight fines are unusual in
insolvency and, due to an FRC rule
change, will probably not be repeated.
The ICAEW argues that firms should
be licensed for insolvency work, with
partners then approved to undertake
appointments, as is the case for audit.
This would increase bodies’ fining pow-
ers. This certainly makes sense.
More radically, as proposed by the
parliamentary report, there should be
an independent regulator with serious
fining powers. That could be the FRC,
or its replacement, dubbed Arga. But
there is a regrettable delay in imple-
menting Arga and it already has a long
to-do list. A watchdog could be brought
within the Insolvency Service,
although that would go against the con-
vention of making regulators inde-
pendent of government. After a consul-
tation in 2019, the service gained the
power to create an independent watch-
dog. That power lapses in 2022 and is
yet to be exercised. Meanwhile, the
wild west of insolvency remains with-
out a sheriff.
★ FINANCIAL TIMES
Letters
Learning basic finance concepts can start as early as first grade
In “Global expert Lusardi shows
importance of learning now to benefit
later” (Financial Literacy and Inclusion
Campaign, Report, October 7)
Professor Annamaria Lusardi is right to
concentrate on expanding financial
education in schools, and the earlier it
starts the better.
Introducing financial concepts and
reasoning can begin as early as the first
grade or Year 2 in England — the first
school year after kindergarten.
This was my experience more than
65 years ago. Every student had to have
a bank account that was co-ordinated
by the school with parents. On
Bailouts are the wrong
energy crisis response
Your article (“Sunak eyes rescue plan
for big energy users”, Report, October
12) makes clear that the recent sharp
rise in the cost of energy is threatening
certain businesses.
Those in energy-intensive industries
would manage if they had the foresight
to use forward markets to insure
themselves against these sorts of price
fluctuations. Indeed, though we have
come to think of commodity exchanges
as high-tech casinos, their true purpose
is to allow companies to hedge.
What then is the argument for
government intervention?
Undoubtedly there will be real losses to
the economy if companies shut down
because they are unable to pay for the
energy they need. Workers will lose
their jobs and communities will
struggle. The capital embedded in
these companies may never be fully
recovered.
Yet, the last two crises seem to have
created all sorts of precedents for
massive government intervention that
is unwarranted here. Government
bailed out the banks during the great
financial crisis, not to save the
shareholders’ capital, but to save the
creditors, including the depositors, and
to ensure that the banks would
continue to function as basic utilities.
In the case of Covid, most companies
could not properly insure against a
once in a 100-year pandemic even if
they wished to. Furthermore, it was the
government, through the various
lockdowns, that forced these
companies to suspend or reduce
activity. Public compensation was then
fully warranted.
Not here. Bailouts and interventions
will beget more of the same in other
industries, in response to other crises.
Can the Treasury bail out all of them? If
not, how does it decide who is
deserving of taxpayer’s money? This
crisis is the moment to draw the line.
Professor Michael Ben-Gad
Professor of Economics
City, University of London
London EC1, UK
Proposal for the Treasury
to take a punt on gas prices
You report that Rishi Sunak, the UK
chancellor, is sceptical about providing
state-backed loans to energy-intensive
industries (“Sunak eyes rescue plan for
big energy users”, Report, October 12).
Rather than giving loans, the
Treasury should enter into a gas swap
with each entity. The transaction could
be structured as a swap whereby the
target company pays a fixed price for
Luxury
fashion must
ditch leather to
be truly ethical
Notebook
by Lauren Indvik
Mondays students’ bank passbooks
were distributed by the teacher, and
students were requested to verify that
the last week’s deposit was accurately
recorded — we were learning “addition
and subtraction” that year.
Students were then given a
deposit form for the next deposit that
would be collected in class on
Wednesdays.
Our homework — we were also
learning to write in that grade —
included (correctly) completing the
form that would be vetted by a parent,
and ensuring that the amount entered
for the next deposit reflected the actual
its gas (which might be the average
cost of their energy for the last 12
months) and the Treasury pays the
actual amount that the company is
being charged.
This would mean that the Treasury is
only paying for the energy costs in
excess of what the target company can
afford, and nothing else.
If energy prices fall then the
Treasury “wins”. Again!
Hereward Drummond
Southsea, Hampshire, UK
Sturgeon’s calculation on
second independence vote
Robert Shrimsley (“Democracy must
prevail in Scotland”, Opinion, October
14) misses two points about Nicola
Sturgeon’s referendum rhetoric.
First, Scotland’s first minister doesn’t
actually want a referendum soon.
Losing by a narrow margin, as polls
suggest, would be fatal to her cause and
career. Winning by one would be even
worse: a deeply divided country would
face economic and other questions to
which she knows she has no answer.
Second, is the matter of principle. If
referendums are to settle questions as
visceral as independence, losers must
consent.
We know they did not consent in
2014; independence campaigning
barely paused. Five years on we still see
the effects of withheld consent to the
Brexit vote. Most Scottish voters don’t
want an independence referendum
soon. A substantial proportion sees one
as wholly illegitimate.
Her challenge is to persuade them
otherwise. Hence the talk of Boris
Johnson denying democracy, recycled
by Shrimsley.
Professor Jim Gallagher
University of St Andrews, Fife, UK
During Milan Fashion Week, Kering,
the €13bn-revenue luxury group
behind Gucci and Bottega Veneta,
announced that it would go “entirely
fur free” by the end of next year,
following similar pledges made by
Michael Kors owner Capri Holdings
and Chanel in 2017-18.
The announcement was chiefly
symbolic, an easy win for a company
keen to woo young shoppers who say
their purchasing decisions are
increasingly being driven by
environmental and ethical concerns —
and one that will have little impact on
the bottom line. When Gucci
announced it was giving up fur in
2017, it accounted for less than 0.2 per
cent of revenues, and of the group’s six
fashion and leather goods brands,
only Saint Laurent and Brioni have yet
to eliminate the stuff.
Marie-Claire Daveu, Kering’s chief
sustainability officer, framed the
announcement as a commitment to
“ethical luxury”, describing it to Vogue
Business as “another step forward in
our commitment to animal welfare
and is in line with our commitment to
sustainability”. Yet the ban does not
extend to precious skins such as
crocodile and python nor to lamb fur
(shearling) or, perhaps most
importantly, to leather — and its
impact on the group’s Environmental
Profit & Loss statement will be
negligible.
Renouncing fur is the right thing to
do. Animals should not have to live in
cages and be slaughtered so that rich
people can have new fur coats. The
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
amount of money provided by parents
for the upcoming deposit. Initially, I
don’t believe that the weekly deposits
ever exceeded 50 cents, except for
birthday gifts or the occasional
monetary reward for a “lost” baby
tooth!
By the third grade we were already
verifying the banks’ interest payments,
since by then we were exposed to
“multiplication”, and by the fifth or
sixth grade, to the concept of
“compounding” — that is, exponents.
Even if this exercise is carried out
online, could this work in today’s
world? Probably not. Even if banks
COP26 can identify action
to ameliorate climate risk
The European floods and US
hurricanes and fires of summer 2021
are clarion calls for environmental
action. Hundreds died in these
catastrophes, which many linked to
human-caused climate change
(“Linking climate change to extreme
weather”, Big Read, August 6).
But is current global warming
leading to more disasters? The
numbers say maybe not, suggesting
instead that increasing human
vulnerability causes more and worse
disasters. Misguided policies and
actions mean that a small increase in
rainfall today — that would not have
been disastrous decades ago — brings
devastation.
Prevailing urbanisation policies
create wastelands of concrete parking
lots, industrial sites and substandard
dwellings, all ripe to generate torrential
and highly damaging water runoff.
Deforestation, constraining rivers and
wetlands and other side effects of the
global demand for primary materials
also drive torrents and muddy deluges,
allowing storms to crash through whole
regions unimpeded.
Outdated infrastructure is another
key failure in many water and weather
disasters, such as floods and fires from
the UK to Turkey through to the US
suffering hurricanes Katrina (2005),
Harvey (2017) and Ida (2021). All are
hallmarks of human action
transforming a small event influenced
by climate change into a deadly
calamity.
Yet they can be tackled. Choices can
be made to reduce development in
floodplains, to use permeable surfaces
reducing rainfall runoff and to build
houses resistant to flood damage.
The imminent UN climate change
summit in Glasgow will discuss how to
prevent climate change and its adverse
impacts. It needs to connect climate
change action with practical on-the-
ground measures to reduce disaster
risk. This would provide a rapid,
positive effect, helping us to help each
other stop disasters while tackling
human-caused climate change.
Moving forward means identifying
specific risk factors for specific
locations and acting in support of
everyone to reduce risks. Rather than
blaming the climate, blame ourselves
for our actions and inaction.
Professor Debarati Guha-Sapir
University of Louvain, Belgium, and Johns
Hopkins Bloomberg School of Public
Health, Baltimore, MD, US
Professor Ilan Kelman
University College London
London WC1, UK
same goes for the reptiles who are
farmed or captured so that their skins
can be made into handbags and belts.
But where does this leave leather? If
Kering truly wants to reduce its
environmental footprint, cutting back
on this mainstay of the industry
would be the place to start. By the
company’s own estimates, leather
scoops up more of its resources than
all of the other materials combined.
But it is also the single most
important driver of revenue and
profits for the company, and the soft
luxury goods sector at large. It is
responsible for about half of sales at
Kering, Hermes and Prada. Bio-based
alternatives are limited, and unlike
precious skins and most kinds of fur,
leather is generally agreed to be a
byproduct of the meat and dairy
industries.
Most luxury handbags and shoes are
made from the skins of young calves,
which are smoother and more supple
than those of mature cows. Calf skin is
worth about 10-15 per cent of the total
value of the animal when it arrives at
a slaughterhouse — significant, but
not enough to reduce the number of
calves killed if luxury houses were
suddenly to go plant-based. Brands
argue that leather is a “sustainable”
choice: that hides generated by the
meat and dairy industries would
otherwise rot in landfills, generating
more methane as they decompose.
But Circumfauna, a research and
advocacy group, claims that sending
hides to landfills and producing
alternatives, even if plastics-based, is a
Friday 15 October 2021
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
would be willing to subsidise this
programme in today’s zero interest rate
environment, if parents are resisting
mandatory vaccinations and/or masks
to prevent the spread of Covid-19 in
schools, it is unlikely they would agree
to mandatory bank accounts for their
children.
That said, I wish Prof Lusardi luck
with her campaign to improve financial
literacy, which can’t come soon
enough.
Ira Sohn
Emeritus Professor of Economics and
Finance, Montclair State University
Upper Montclair, NJ, US
US strategy is to deter
unilateral move by Taiwan
Gideon Rachman adds to the growing
chorus of pundits warning that a
climax between the US and China over
Taiwan is approaching (“The moment
of truth on Taiwan is getting closer”,
October 12). While his column may be
a useful summary of recent
developments, he misunderstands the
central concept of “strategic ambiguity”.
Rachman claims that the US employs
such a tactic to keep Beijing off-
balance, uncertain of what the US
would do if it attacked Taiwan. If that is
part of the story, it is a minor one.
After all, the war planners in China
must assume that the US would enter
the fray regardless of Washington’s
declared policy. Such prudent
assumptions shape its tactics. Hence,
an invasion of Taiwan is understood to
have to be quick and to use
overwhelming force to be successful.
The US “strategic ambiguity”, which
is not very meaningful to Beijing, is
aimed at Taipei. Washington
traditionally has been wary of Taiwan
unilaterally declaring independence
and sucking the US into conflict with
China. The “strategic ambiguity”
doctrine is meant to deter Taipei.
Marc Chandler
Chief Market Strategist
Bannockburn Global Forex
Cincinnati, OH, US
Business school given a
mathematician’s rebrand
I am pleased to see that because of its
links to Sir John Cass, an 18th-century
merchant and member of the slave-
trading Royal African Company,
London’s Cass Business School has
been renamed the Bayes Business
School after the 18th century
mathematician and philosopher
Thomas Bayes (“Tangled up in the
name change culture wars”, Opinion,
Work & Careers, FT.com, October 14).
I look forward to all its graduates
understanding, and being able to apply
Bayes’ small and powerful theorem of
“conditional probability” that has so
many applications from hunting
submarines, to marketing, to
epidemiology, to investment. Suitably
schooled, its graduates will go on to
great things.
I’d also suggest removing the
heraldic shield and replacing it with the
theorem itself. The theorem is succinct
and if we were to see more formulas in
public life perhaps we would all
understand maths better.
Michael Hobbs
Which Days Tech
London N13, UK
better option, because the energy and
chemicals required to turn them into
shoes and handbags is so
environmentally damaging.
Either way, luxury brands are
helping to fuel a demand for animal
products at a time when scientists say
we should cut down their use. Animal
agriculture accounts for an estimated
15-18 per cent of total green house
emissions as well as a great deal of
animal suffering.
As a vegan and an animal lover, I
am quietly horrified when I step into a
brand showroom and see rows of bags
and shoes made from their hides; my
Instagram feed often juxtaposes
images of women showing off their
new Bottega Veneta calf leather shoes
with activist videos of a struggling calf
being shot in the head.
Perhaps the fashion industry might
look to emulate Volvo, which
announced last month that it would
eliminate leather from its electric cars
by 2030, citing “the negative
environmental impacts of cattle
farming, including deforestation” and
a desire to “do what it can to help stop
animal harm, by contributing to a
reduced demand for these materials
containing animal product”.
Luxury brands have enormous
cultural clout. If they were fully to
promote a plant-based lifestyle, it
could go a long way towards
persuading the rest of the world to eat
less meat and dairy. That, truly, would
be “ethical luxury”.
lauren.indvik@ft.com
Friday 15 October 2021
Ngozi
Okonjo-Iweala
L
ast month, the scientific com-
munity confirmed what most
of us already know. Climate
change is here. Left unabated,
the frequency and intensity of
its impacts will only get worse. We are
already seeing loss of lives and the effect
on macroeconomic stability. Taking
bold action through the introduction of
a global carbon price is essential.
Momentum on climate change is
picking up, with governments and com-
panies pledging to get to net zero carbon
emissions by 2050 or earlier. Many have
already adopted a range of initiatives.
Members of the World Trade Organiza-
tion have, since 2009, formally notified
more than 4,500 climate-related meas-
ures, from direct taxes to regulation,
and discussed their trade implications.
But we are still well short of what is
needed to limit global warming to 1.5 or
Stablecoin
investors need a
wake-up call
FINANCE
Gillian
Tett
A
dozen years ago, during the
2008 financial crisis, it
occurred to me that the
best way to make a finan-
cial system safe, amid wild
innovation, was for investors and regu-
lators to suffer regular, small “wake-up”
calls. These events, like the porridge in
the Goldilocks tale, would be just “hot”
enough to hurt, but not so scorching
that they created permanent burns.
Sadly, this did not happen before that
crisis; or not to a degree that might have
punctured investor (and regulator)
euphoria and complacency. However,
an interesting question to ponder today,
amid another wild bout of financial
innovation around cryptocurrencies, is
whether we might yet see a version of
that Goldilocks moment at work?
Consider the intriguing story of the
cryptocurrency Tether. In recent years,
the Tether company, which is control-
led by the owners of a crypto exchange
called Bitfinex, has issued $69bn of so-
called “stablecoins” — digital tokens
pegged to other assets such as dollars.
This sum, which has expanded rap-
idly this year, means that Tether repre-
sents about half the total stablecoin uni-
verse. And since the coin is widely used
TECH NOLOGY
John
Thornhill
A
t a well-known Swiss ski
resort a few years ago, I
attended a closed-door
meeting of chief executives
during which they debated
a heretical thought: should we abolish
patents?
After the predictable outcry from
pharmaceutical executives about how
this would destroy incentives for
research, the discussion took an unex-
pected turn. Some challenged accepted
wisdom by arguing that a patent-free
world might facilitate, rather than frus-
trate, innovation. Companies with sev-
eral parts of the jigsaw for a novel anti-
cancer drug, say, might suddenly dis-
cover their rivals held the missing
pieces. That would make it cheaper and
faster to bring drugs to market.
Adopting a global carbon price is essential
even 2 degrees Celsius. COP26, next
month’s UN climate conference, will test
the political will to close the gap.
But as governments move to raise the
cost of polluting across the economy,
including in energy-intensive, heavily-
traded sectors such as aluminium,
cement, electricity and steel, we hear
increasing concerns about “carbon leak-
age”. This is the notion that raising the
price of carbon in one market risks
shifting investment and production to
places where carbon prices are lower or
non-existent. The fear is that carbon-
constrained countries would suffer job
and industry losses, with global emis-
sions unchanged because polluting pro-
duction is simply occurring elsewhere.
We still await proof of carbon leakage,
but analysis of low carbon prices shows
that if large economies diverge hugely in
climate ambitions, leakage could occur.
This has led to calls for “border carbon
adjustment measures” to ensure foreign
competitors are subject to the same car-
bon costs as domestic producers.
Yet developing countries, in particu-
lar, fear that border carbon adjustment
could become a pretext for protection-
as a convenient way to transfer digital
assets into fiat currency (and vice versa)
and conduct transactions between dif-
ferent platforms it is often described as
the reserve currency of the crypto
world.
Yet its reputation is not as stable as its
name suggests. Before February 2019,
the company claimed the token was
backed by holdings of dollars, enabling
it to maintain a one-to-one exchange
rate. However, earlier this year the
group paid an $18.5m fine to the New
York attorney-general’s office as part of
a settlement, following allegations by
the AG that Tether had “obscured the
true risk investors faced” with its
reserves before February 2019.
The company has added a note to its
website to say that the token is backed
by safe, dollar-like assets, such as $30bn
of US commercial paper (a claim that
implies it is the seventh largest global
operator in this sector).
Last week a Bloomberg article
claimed that part of Tether’s assets were
sitting in Chinese bonds, amid unusual
financial flows between offshore bank
accounts. In response, the company
issued a vehement denial that anything
was untoward, arguing “that quarterly
assurance attestations (as recently
as June 30, 2021) confirm that all Tether
tokens are fully backed” and “the vast
majority of the commercial paper held
by Tether is in A-2 and above rated issu-
ers”.
Some crypto investors do not seem
concerned (perhaps because they
assume Tether will hold its value as long
Battles over patents can be productive
Universities, increasingly assertive
over researchers’ intellectual property,
might return to their original purpose of
increasing the stock of public knowl-
edge. Companies could still make good
money by selling trustworthy drugs.
Would you buy a potentially life-saving
drug from an unknown manufacturer?
It was an intriguing thought experi-
ment that is perhaps becoming increas-
ingly resonant as criticisms of the dys-
functionality of costly, time-consuming
and ineffective patent regimes grow
louder. But although elevated corporate
titans might still thrive in a patent-less
world, it is less clear that lower-level
inventors would gain. Patents devel-
oped for a reason.
In a new series of essays, The Battle
Over Patents, 10 economists, historians
and lawyers make a compelling case
that patents remain the best, if imper-
fect, way of rewarding inventors and
disseminating knowledge. “Extensive
empirical evidence shows that patents
increase the scale and scope of creativ-
ity, foster diversity and inclusiveness,
generate greater knowledge spillovers,
and enhance social welfare in the wider
★ FINANCIAL TIMES
Opinion
ism aimed at their exports, when they
are not the core problem. Africa, for
instance, contributes roughly 3 per cent
of greenhouse gas emissions. From that
perspective, poor regions of the world
see this measure as unfair.
This is no argument against carbon
pricing. In every sphere of our economy,
production and consumption are
guided by price signals. Unfortunately,
Fragmentation risks
trade frictions and
unpredictability for those
trying to decarbonise
carbon has too often been an exception,
though this is starting to change.
Indeed, more than 60 different carbon
pricing schemes already exist globally,
though they cover only 22 per cent of
total emissions.
The challenge comes from the incon-
sistency of carbon pricing systems.
Prices vary from less than $1 per tonne
of CO2 in Ukraine to more than $130 per
as everyone else uses it). While crypto
prices initially fell following Bloomb-
erg’s story, they have since rebounded.
But rumours keep flying and, last week,
international policymakers pledged
more oversight. If nothing else, that
makes the Tether story a wake-up call.
Should the mainstream financial
world care? Some seasoned performers
might argue not. After all, stablecoins
currently act somewhat like the poker
chips of a cyber casino.
While the tokens are used to make
trades within the confines of crypto-
land, they can only be used there. As a
result it should not matter if they turn
out, say, to be part of a pyramid scheme,
as long as that casino is self contained —
or so the optimistic argument goes.
Yet that idea seems more and more
Mainstream institutions
entering this world must
demand better, audited
policies around reserves
population,” Zorina Khan, a professor of
economics at Bowdoin College, tells me.
One of the book’s recurrent themes is
that ferocious battles over patents are
an inevitable feature of the system
rather than a temporary bug that needs
fixing. In essence, patents trigger fights
over the “producer surplus” generated
by any new product. While the inventor
will always demand as big a slice of that
monetary surplus as possible, the pro-
As a rule, the balance of
power should tilt towards
the inventor rather than
the producer
ducer’s aim is clearly to minimise it.
Most complaints today echo disputes
over the past 230 years. The authors
explore how in late 19th-century Amer-
ica, for example, a small army of “patent
sharks” (the predecessors of modern-
day patent trolls) aggressively pursued
those who had infringed intellectual
property rights attached to rubber den-
tonne in Sweden. Each subnational,
national or regional system works dif-
ferently and has different sectoral cov-
erage. Prices are often too low, consider-
ing the estimate by the Stern-Stiglitz
Commission on Carbon Pricing that
somewhere between $50 and $100 per
tonne of CO2 is required to meet Paris
Agreement temperature targets.
There are different ways to price car-
bon. Competing ideas and approaches
can spur learning and innovation. But
fragmentation risks generating trade
frictions and unpredictability for busi-
nesses seeking to decarbonise. Worse, it
could weaken the effectiveness of global
efforts to mitigate climate change.
Investment at the scale and speed
needed to transform our economies
over the next two or three decades
would be best served by open interna-
tional markets for goods and services,
intermediate inputs and raw materials.
A big worldwide push to invest in decar-
bonising electricity, transport, indus-
trial production and homes could give
rise to what some have dubbed “green-
flation”. Trade frictions would exacer-
bate these pressures and reduce the cost
naive. For one thing, mainstream inves-
tors and institutions are increasingly
being pulled into the crypto-world, for
investment purposes, if nothing else.
For another, the market now has tenta-
cles into other parts of finance, as
Tether’s holdings of US commercial
paper shows. This might create conta-
gion risk, as Fitch ratings noted in July,
particularly if these products are com-
bined with the type of leverage that
might spark margin calls in a crunch
(which they increasingly are).
While stablecoins are currently used
in a “walled” casino, companies such as
Facebook hope to create versions of
these tokens in the future that will have
mass-market, real-world use. Prece-
dents matter.
So regulators and investors need to
heed the wake-up calls. One obvious
step that any mainstream investors and
institutions tiptoeing into this world
must take is to demand better, audited
policies around reserves. In China, the
reserves backing fintech products are
held at the central bank; in Kenya, a
product such as M-Pesa holds reserves
tures, sewing machines and barbed
wire. Then, as now, every trick in the
book was used to extract a bigger share
of the producer surplus. Eras of strong
patent enforcement have been followed
by decades of weak enforcement,
depending on the lifecycle of a particu-
lar technology and the intensity of lob-
bying and legislation.
Stephen Haber, a professor at Stan-
ford University, says one of the most
important benefits of patents is that
they enable a productive division of
labour. Scrap them and companies
would be forced to take technological
research in-house with significant losses
in efficiency. “In a patent-less world it
would not be possible for firms to spe-
cialise in technological development
and other firms to specialise in techno-
logical implementation because there
would be no property rights around
which firms could contract,” he says.
“That would knock out tens of thou-
sands of specialist firms.”
Even if we accept the authors’ conclu-
sion that patents still work well in the-
ory, they could be made to work better
in practice. If battles are a permanent
effectiveness of green investment.
The most straightforward solution
would be a global carbon price aligned
with the Paris Agreement. This would
help achieve our collective climate
goals, and bring stability and fairness
for cross-border business. Unfortu-
nately, we are not yet there. Leaders
gathering in Glasgow at COP26 should
make solving this problem a priority.
But absent such an agreement, the
WTO, IMF, World Bank and OECD share
a duty to work together to find solu-
tions. We need to offer governments our
insights on a common methodological
approach to carbon pricing.
We also have a responsibility to
address the needs of least developed
and developing countries, to enable a
just transition towards environmentally
sustainable economies and societies.
Joining forces to propose a common
approach on global carbon pricing is the
way forward. We owe it to the planet and
its people. We have no time to waste.
The writer is director-general of the World
Trade Organization and will be a speaker at
the forthcoming FT Africa Summit
Efi Chalikopoulou
in a trust account. Something similarly
transparent is needed for Tether and
other stablecoins.
A second step is that regulators need
to increase co-ordinated global over-
sight. This will not be easy, given the
mobile, flighty nature of cyber space.
Moreover, as Klaas Knot, the vice chair
of the Financial Stability Board noted
last week, financial regulators face a
tricky silo problem: although bodies
such as the FSB are skilled at sharing
data about cross-border financial flows,
they have “no counterpart” in digital
sphere. This matters, given that many
crypto companies describe themselves
as being in “software”.
It is good news that regulators have
pledged to increase their scrutiny and it
is even more welcome that critical
attention is being paid to companies
such as Tether. Yes, crypto fans might
howl. But, without some accidents and
controversies to keep investors on their
toes, there could be a bigger disas-
ter. Perhaps a gentle wake-up call is due.
gillian.tett@ft.com
feature of patent regimes, adaptability
must be too. This summer, Germany
amended its patent regime to enforce
the sensible principle of proportionality.
Others have pressed for tightening defi-
nitions of “novel, non-obvious and use-
ful” inventions and reducing the patent
lifespans. But, as a rule, the balance of
power should tilt towards the inventor
rather than the producer.
There is also scope for more experi-
ments in business models that share, or
disown, intellectual property rights.
Perhaps the most fascinating example is
open source software, which runs so
much of our digital world. Developers
share code to help each other rather
than generate instantaneous economic
reward. Some economists have argued
for publicly funded contract research
companies making their discoveries
open to all.
But when money enters the equation,
battles inevitably erupt over its distribu-
tion. “The province of reward is the last
asylum of arbitrary power,” as the phi-
losopher Jeremy Bentham once wrote.
john.thornhill@ft.com
19
Being mean
to companies
will not fix our
problems
ECONOMICS
Chris
Giles
F
ew beliefs are more fashiona-
ble in politics and economics
than the view that companies
respond best to a “treat them
mean, keep them keen”
approach. The award of a share in the
Nobel memorial prize in economics this
week to David Card will cement this
belief — even though the honour was
given for his research methods rather
than his famous 1994 finding that a rise
in the New Jersey minimum wage did
not reduce employment.
Almost every week, wherever there is
a social problem, politicians and econo-
mists, whatever their political bent, say
the solution is to make life harder for
business. In the UK, Card’s findings have
encouraged parts of the Labour party to
propose raising the national minimum
wage to £15 an hour, higher than the
median wage. Left-leaning economists
say the move would raise productivity
because companies will be forced to
innovate to survive.
On the right, Prime Minister Boris
Johnson makes the same point. In a
recent speech, he argued life should be
made difficult for companies so they
would improve productivity. In the past,
he said, they used “immigration as an
excuse for failure to invest in people, in
skills and in the equipment, the facili-
ties, the machinery they need”.
In the US, the administration of Don-
ald Trump believed tariffs strengthened
the American companies that had to
pay for them. The current administra-
tion is happy to raise corporate taxes in
It is not just politicians who
think business needs a
good kicking to implement
necessary change
a bid to “build back better”. The EU is
tightening regulations on automakers to
lower costs of electric vehicles. In each
case, we are told good things come from
being beastly to business.
It is not just politicians who think
business needs a good kicking to imple-
ment necessary change. The IMF this
week said the Covid-19 pandemic — an
event pretty bad for business — had
“accelerated change across many sec-
tors of the economy through greater
automation and a transformation of
workplaces” and looked forward to
higher productivity growth as a result.
These policies are far from identical
and some have redistributive or envi-
ronmental ambitions at their heart,
where politicians will admit quietly that
the result will not be win-win for all.
But in each case, competition and mar-
ket forces are not seen as sufficient as
a disciplining device on companies.
Regulations and restrictions are the
new game.
Card’s genius was in demonstrating
that there are occasions when the
answer is yes. Raising the burden on
business through minimum wages did
not hurt employment in New Jersey and
this finding has been replicated across
the US and in many countries. But,
sadly, improved productivity has not
been the reason companies have kept
workers on. Research from the UK’s
Low Pay Commission shows that in 20
years of experience in raising the mini-
mum wage, it found “few specific exam-
ples . . . of employers succeeding in
raising productivity”. Rather companies
took lower profits, raised prices and, it
found, “asking workers to work harder
seems a worryingly common response”.
Far from the prospect of Brexit spur-
ring a wave of investment as companies
rushed to adapt to the burdens it
imposed, the UK’s investment perform-
ance since 2016 has been woeful,
according to Bank of England research,
because companies could do more than
complain. They could go elsewhere.
Productivity experts are not expecting
immigration curbs to raise productivity.
The pandemic might have jolted com-
panies on to a higher productivity path
for an undefined period, but I hope no
policymaker would ever suggest repeat-
ing the crisis as an economic strategy.
While there are some exceptions,
making life difficult for business does
not improve corporate performance.
“Treat them mean, keep them keen” is
terrible advice for healthy relationships.
It is just as bad in economic policy.
chris.giles@ft.com
20
Twitter: @FTLex
TSMC/chip shortages:
layer ache
The more moving parts, the more
things can go wrong. That even applies
to silicon chips, which have no moving
parts at all. The supply disruption
choking production of these
sophisticated products now extends to
a scarcity of humble cardboard boxes.
Shortages also encompassing
shipping containers, water, chemicals
and raw silicon are putting pressure on
chipmakers. Analysts say this helps
explain weakness in the shares of
Taiwan Semiconductor Manufacturing
Co. That is despite strong earnings
from the largest contract chipmaker.
Net profits rose 14 per cent in the
third quarter to T$156bn ($5.6bn),
beating expectations. Sales rose more
than a fifth. A lack of semiconductors,
crucial components in everything from
smartphones to toasters, has boosted
TSMC’s earnings. Yet the stock is off 7
per cent in the past half-year, reflecting
worries that capacity is constrained,
capex is too high and margins may fall.
The complexity of chipmaking raises
its sensitivity to disruption. Taiwanese
factories produce large silicon wafers,
cut them into thousands of chips and
ship them to south-east Asia where
contractors assemble, test and package
them. These microprocessors are then
sent on to China for incorporation in
circuit boards and shipping to clients.
Each stage is a potential bottleneck,
as closures of factories in Malaysia and
Vietnam demonstrated this year.
TSMC raised gross margins to 51 per
cent in the third quarter. That was an
improvement on the previous quarter
but still below profitability at US peer
Intel. The group has set aside $100bn
over the next three years to build
capacity. This may not be enough for
TSMC to meet demand.
The good news is that it renegotiates
sales contracts at this time of year. It is
likely to fix higher prices. That should
be reflected in earnings as early as the
fourth quarter. Rival Samsung
reportedly raised prices with key
customers by up to a fifth last month.
Input shortages will abate faster than
chip shortages. Those could extend
into next year. Moreover, advanced
chips are a growing source of revenue,
accounting for more than half of all
TSMC’s revenue during the third
quarter. New technologies such as AI
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and self-driving cars require smaller,
faster, more complex chips. There will
be no lack of demand. TSMC and
Samsung remain good investments
regardless of whether their contractors
can source cardboard boxes.
US banks:
the greater barrier grief
Depending on which opinionated chief
executive you listened to this week,
Wall Street banking is either a business
with high barriers to entry or it is not.
Yesterday, James Gorman was
exultant after another blowout quarter
for Morgan Stanley’s investment
banking business. Revenue jumped 67
per cent. In his comments to analysts,
he declared “it didn’t work out so well”
for regional and foreign players who
tried to get into institutional securities.
Yet just one day earlier, Jamie Dimon
said that JPMorgan would “spend
whatever we have to spend to compete
with all the folks in our space”.
Part of the difference in their points
of view is explained by their differing
exposures to corporate and consumer
lending. JPMorgan, with its business of
credit cards and home mortgages, is
competing against upstarts with slick
smartphone apps. But big ticket M&A
deals are not so easily replicated by
tech disrupters.
However you look at it, record
profits show that the US banking
business remains healthy. Tepid and
even negative loan balance growth has
surprised investors given the strong
economy — although loan-loss expense
and reserve releases have been
counterweights.
Bank of America has taken the
approach of investing slightly more
aggressively. While BofA’s revenue
growth was above 10 per cent, its rivals
were essentially flat.
Expenses are drifting up. Investment
banker pay is rising as managers pay
out to keep stars from defecting.
The worry in 2022 is that costs will
remain high while record-breaking fees
recede. Consumer banks will still be
forced to invest in technology to keep
the likes of PayPal and Square at bay.
Meanwhile, investment banks will be
stuck with pay guarantees to
rainmakers caught in a dry spell.
Challengers must simply demonstrate
market share growth. The challenge
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★ FINANCIAL TIMES
FTSE buybacks: return to sender
Britain’s largest listed companies are buying back more of their own shares. Not only are profits soaring, but
cash balances have piled up since 2019. These repurchases come when company valuations are at the high
end of the historical range compared with book values. US repurchase plans appear even more aggressive.
FTSE share buybacks begin
rebound
£bn
2001 05 10 15
* 2021 = Lex estimate
FT graphic Sources: Citi, AJ Bell, FT estimates
Call it the circular economy.
Companies hurried to raise cash last
year from capital markets
underpinned by state support.
Now the threat of pandemic-
induced collapse is receding and
profits are recovering, businesses are
rushing to return money to investors.
Every morning, the London stock
market’s news service is jammed
with stock repurchase
announcements. On the current
trend, share buybacks by FTSE 100
companies in 2021 should approach
£25bn, up by about a quarter year on
year.
Net profits will easily triple this
year on a stated basis, according to AJ
Bell, which, in turn, hints at more
free cash flow available for
that strong incumbents always face, no
matter the risk from upstarts, is
pressure to keep profits high.
Biden supply plan:
the Grinch pinch
The Biden administration is pulling out
all stops to save Christmas. Global
supply-chain disruptions are sending
prices higher and playing havoc with
inventory. With Americans facing the
prospects of emptier shelves this
holiday season, the White House has
turned to private sector heavyweights
to help break the logjams.
This week Walmart, Target, Home
Depot, FedEx, UPS and Samsung
agreed to extend their working hours
1 Dispute settled one wicket (8)
10 Go through foreign articles on leave
(7)
11 Circular spring indicator? (7)
12 Barker’s contribution to Bacchic
orgies (5)
13 South American writer flushed
round hose fitting (9)
14 Parish binned crazy ways to slow
18 A male, easily hurt, played without
much skill (12)
21 Officer accompanies poet and
chemist (9)
23 Solver’s curdled food, ignoring G &
T (5)
24 Latvian uncle regularly leaves (7)
25 Sleek Europeans fancy taking in
Lima (3-4)
26 It picks up sound in sewer (6)
packaging (8)
DOWN
1 Throw up meal across area (6)
2 Royal family arranged tours around
Germany (6)
3 Start to grow good fur at lodging (9)
4 Research in new superstores shows
decreasing tools? (7,7)
6 Setter’s mature still perhaps (5)
7 It’s not rare or good for you (4,4)
8 Second sightseer avoids posh driver
(8)
9 Does the ultimate in figures drive
this theatre worker? (7,7)
15 Call Yankee near Turkey making bad
landing (5,4)
16 Cutter’s crew almost doing without
sail finally (8)
property (8)
19 Digital problem initially baffles
Labour group (6)
22 To some extent these qualities
match (5)
In the US, there’s a more
pronounced recovery
Repurchase authorisations* ($bn)
80
60
40
*
20
0 0
20 2000 05 10 15 20
*2021 year to date
Sources: Goldman Sachs, Birinyi Associates, Bloomberg
shareholders. If anything, buybacks
could exceed our estimate.
Buybacks are also supported by the
cash on company balance sheets. Last
year, FTSE 100 companies
accumulated a fair bit of it, despite
stated profits collapsing by more than
half. Cash rose to £280bn, up 40 per
cent over the figure for the end of 2019,
using Bloomberg data.
The pick-up in buyback activity fits
with Lex’s thesis last year that
corporates could bolster reserves to
withstand the hit from the pandemic
shutdown. With hindsight, they
accumulated too much cash.
US buyback authorisations have also
risen to a record $870bn so far this
year. US groups have more propensity
for returning cash to shareholders this
to help ease congestion at two key US
ports. But unloading containers is just
one piece of the puzzle. Labour
shortages in other parts of the supply
chain — including trucking,
warehouses and rail freight — are
impeding the movement of goods too.
Moreover, the extra 3,500 containers
that the six companies are expected to
move each week is tiny compared with
the overall number. More than 950,000
containers went through the port of
Los Angeles in August alone.
Behind the scenes, Walmart, Target
and others have taken drastic steps,
including using air freight, to ensure
shelves are stocked for the holidays.
Higher spending on logistics will
weigh on margins. US retailers are
expected to face an extra $223bn in
costs as a result of logistics, labour and
FTSE at a pricier valuation
than last year
Estimated price to book ratio for
800 the FTSE 100
2.0
600
1.7936
1.9
Oct 15
1.8
1.7
400
1.6
200 1.5
1.4
1.3
2012 13 14 15 16 17 18 19 20 21
Source: Bloomberg
way, partly because of investor
preference. These authorisations
suggest many more repurchases this
year than in the past two.
Executives and their boards must
be optimistic about the prospects for
next year. The share purchases have
occurred after the FTSE’s valuation
has rebounded from historic lows. Its
forward price to book ratio at 1.8
times has returned to the upper end
of the 10-year range.
Shareholders do not like lazy
balance sheets chock full of cash.
Chief executives want shareholder
love. Expect this mutual admiration
to continue into next year, although
you might also ask why bosses are
buying their own companies’ shares
in bulk at the top of the market.
manufacturing headaches, according to
Salesforce.
But large store chains with well-
stocked shelves should come out on top
if they can take business from smaller
rivals. Tighter inventory should
encourage Americans to shop sooner
and reduce the need for discounting.
Investors appeared divided. The S&P
Retail Select Industry index is up 45
per cent this year. But bearish bets are
mounting. Short interest in the SPDR
S&P Retail exchange traded fund has
surged from 7 per cent of the ETF’s
market cap in March to 120 per cent,
according to IHS Markit data.
A better bet, though, would be on
individual companies. Big retailers will
get bigger. For ailing ones such as Bed,
Bath and Beyond, a supply-chain
squeeze is the last thing they needed.
Friday 15 October 2021
City lawyers:
pro bono of contention
City lawyers have money. The UK legal
aid system does not. The idea of a
sectoral levy to fund access to justice
will always have supporters as a result.
The legal system’s big earners can
neutralise the threat by contributing
more. They should be clever about how
they do it.
This year has yielded a windfall for
London lawyers. Pre-tax profits rose
almost 20 per cent at Magic Circle firm
Allen & Overy. At both A&O and rival
Linklaters, profits topped £800m.
Legal aid spending has dropped by a
similar amount since the government
restricted eligibility for free advice in
2011. Net spending declined from
£2.6bn to £1.7bn in 2019-20. Little
wonder a levy to fund legal aid is
enduringly popular with ministers.
Other sectors pay levies to fund
public benefit advice. The Money
Advice and Pensions Service is funded
by financial services companies as well
as the government. Its budget is only
£157m, though. Plus the financial
services sector is larger than the law
one. A more aggressive levy on legal
revenues would distort incentives.
Partners could pay voluntarily in
other ways. One model is a Labour
party proposal that would require
lawyers at firms bidding for
government contracts to do 35 hours of
pro bono work — free legal advice with
a charitable purpose.
Assume a charge-out rate of £350 an
hour. Revenue forfeited at a firm of
1,000 lawyers would then be more than
£12m, or roughly six Magic Circle
partners’ profits. Many firms are
already close to that target. At Hogan
Lovells, which has a dedicated pro
bono partner, each UK fee earner is
doing about 42 pro bono hours a year,
says Legal Week. In the US, large firms
commit to contributing 3-5 per cent of
total billable hours.
There are limits to the usefulness of
pro bono work by City lawyers when
the need is often for those with
expertise in social welfare. But they can
do more. A new voluntary scheme led
by City law firms would be good start.
Lex on the web
For notes on today’s stories
go to www.ft.com/lex
 FT INNOVATIVE LAWYERS
Europe
2021

www.ft.com/innovative-lawyers OCTOBER 15 2021

RESEARCH PARTNER
FINANCIAL TIMES Friday 15 October 2021 FTReports | 3

FT Innovative Lawyers Europe

Inside
Innovative Lawyers
Law firm transformation
Clients want longer-term, big-picture
thinking Page 4
Plus The FT Top 30 innovative law firms
Plus Case studies in best practice
Pages 5-33

Leadership
Law firm leaders Page 6
Change makers Page 8
Practitioners Page 24

Luis Alvarez/Getty Images

Sustainability pioneers Page 33

Ones to watch
The small firms in continental Europe
outpacing larger rivals Page 10

Questions for lawyers in Mental wellbeing

Why young lawyers feel most at risk of
burnout Page 12

a time of transformation Diversity

Law firms are shifting their focus from
hiring to retention Page 14
An insider view on why the culture must

W
elcome to the FT’s Innovative Lawyers 2021
report for Europe. The reporting and case
studies on the following pages feature
innovations that are potentially transformative
for the legal industry. They all touch on
important questions facing anyone working in the sector.
Let’s start with one triggered by the pandemic: would the
insurers pay out on business interruption policies? That was one
of the nail-biting questions for companies everywhere when
businesses were forced to shut their doors. Read how regulators
and lawyers worked quickly, and from home, on a case that was a
landmark in more ways than one. Pages 18-23.
The question for the aviation sector, grounded by travel bans,
was: how to survive? The response was a rush to raise cash and
some complex restructuring, all facilitated by lawyers. Page 28.
The financial technology sector is bristling with legal
headaches for lawyers: how do you sue when a company is not
registered or regulated? Should a non-fungible token be classed
as a tradeable financial asset? We look at how lawyers are
grappling with new concepts while regulators are still writing the
change Page 16
schemes can help — but does the law industry also have “a
horrible culture”, as one lawyer claims? Page 12 Disputes
More diverse hiring is welcome, and it makes business sense Insurance payouts for small businesses
when a war for talent is under way. The next challenge is affected by Covid — and the trend
retention, however, or the question young lawyers will be asking towards more class actions Page 18
is: should I stay, or should I go? Page 14. Also: in a personal
account, lawyer Natalie A Carter sets out why she sometimes
hesitates to recommend a career in the law to people of colour. Financial innovation
Page 16. Fintech pioneers wrestle with new financial
Work on environmental, social and governance (ESG) issues concepts Page 26
has proliferated, and law firms have responded. Now consumers
and regulators are asking questions about “greenwashed” claims Aviation in crisis
to eco-friendliness: lawyers say they can help on that too. Pages How airlines survived to fly again Page 28
30-33.
What makes a good leader? In the 2021 report, we have
highlighted more individuals than ever: law firm leaders, Page 6; Sustainability
change makers, page 8; legal practitioners, page 24; and ESG activity drives demand for legal
sustainability specialists, page 33. expertise Page 30
The most outstanding of the case studies in these pages are The fight against greenwashing Page 32
showcased in an online awards event. Our thanks go to RSGi
Cover illustration: Cat O’Neil

rules. Page 26.
How is your health? Even lawyers who thrive on crisis will
admit the effects of the pandemic have also been challenging. A
record-breaking period for deals and tumult-hit clients have
added to the pressure on legal advisers. Corporate wellness
which, alongside the FT, compiles this review of innovative law
firms, in-house legal teams and lawyers. In-house
Spotlight on Amazon’s legal team Page 35
Roula Khalaf Plus The FT Top 5 in-house legal teams;
FT editor Case studies in best practice Pages 36-39
4 | FTReports FINANCIAL TIMES Friday 15 October 2021

FT Innovative Lawyers Europe

Experiments in regeneration
Law firms Clients want
more long-term thinking,
says Reena SenGupta

H
ow should
commercial law
firms measure
success?
The industry
itself has settled on the “PEP
number” — annual profit-per-
equity-partner. But this measure is
irrelevant to the buyers of legal services,
who want long-term, big picture thinking
from their lawyers. In fact, a focus on PEP tends
to result in the opposite approach.
“The legal profession has a fundamental
problem with short-termism,” says Simon
Levine, global co-chief executive of DLA Piper.
Partners’ reluctance to divert their annual
earnings towards experimental long-
term investments means normal business
activities — such as innovation or research and
development — are too often negligible.
However, two big law firms seem to have
worked out how to sidestep this short-termism
and the constraints of the partnership model, in
ways that clearly show how the legal business is
metamorphosing.
One of them is Levine’s firm. DLA Piper has
set up Aldersgate Holding, a wholly owned
subsidiary, to invest in new technology and
allied activities, such as blockchain and
litigation funding. Although funded by the
partners, it has the autonomy to be far nimbler
than law firm management teams.
“I genuinely don’t think people will achieve
true innovation unless they can reinvest into
longer-term projects,” says Levine. As a former
media lawyer whose clients included The
Beatles, he says his experiences inspired
him “to think more broadly and
creatively. I’ve applied that not
just to legal problems but also to Illustration: Cat O’Neil
broader challenges”.
The other firm, Allen &
Overy, set up the Markets
Innovation Group (MIG) in 2018 That Mixing up office and homeworking is now in
to encourage a more “start-up” leading favour. Such a shift would have been
culture and to invest in long-term projects. firms want to unthinkable before the pandemic, yet legal
Unlike DLA Piper’s venture, it sits inside the transform how firms are now borrowing ideas, such as agile
firm but MIG is treated like a client. Lawyers’ lawyers approach their work is working, from tech and engineering. Pinsent
time spent on MIG projects can be recorded as most have been trained in particularly evident in the proliferation of Masons has rolled out lean working principles —
billable hours, thanks to a system specially design-thinking. environmental, social and governance (ESG) in one case cutting a due diligence process down
developed by the MIG and A&O’s finance team. With its emphasis on experimentation and groups. For many, these provide a way to get from 12 months to eight weeks.
Now a multidisciplinary 30-strong team, MIG the end user, design thinking has been adopted over internal silos and reflect how giving legal Transformation is under way but the word
has £5m this year to invest in firm-wide by many leading European law firms as a way to advice can no longer be a passive service. itself “can put people off,” warns Alastair
projects. “It has transformed an unstructured help change mindsets. Even smaller continental Lawyers must consider not only commercial Morrison, the partner in charge of driving
approach to research and development into a firms, such as Gómez-Acebo & Pombo, have set context, but issues such as climate change and change at Pinsent Masons. “This is more about
structured approach, allowing us to scale up our up design centres that streamline the way social impact. Osborne Clarke is formalising the legal business regenerating — what you are
R&D while scaling down individual risk,” says lawyers draft contracts and use tech. this approach in its “3D” client service model, in looking for is the outcome,” he says. “You want
David Wakeling, the partner leading MIG. Similarly, blending legal services with other which lawyers consider transformational people to look at the firm in three years’ time
Both Allen & Overy and DLA Piper have a offerings is becoming the norm in many firms. trends when giving advice. and say, the firm has regenerated itself.”
history of investing in business lines alongside Some, such as listed law firm DWF, are putting The pandemic accelerated many changes, not
traditional legal practice. Aosphere, Allen & integrated services at their core. Others, such as least digitalisation and working from home.
Overy’s online risk management business, has Dentons and Norton Rose Fulbright, offer Sharing knowledge is one of the hardest
RESEARCH AND AWARD SUPPORTED BY
been operating for 20 years. DLA Piper, under integrated services to selected clients. The John challenges for law firms, so Spain’s Garrigues
Levine, has set up a “change council” to drive Lewis Partnership, the UK retailer, has introduced a single digital platform where it
radical change. Lawyers are assessed partly on recently used Dentons’ Helix mix of different carries out all its work and can capture, analyse
their contribution to the change agenda, and services for a fixed fee. and use its institutional expertise.
FINANCIAL TIMES Friday 15 October 2021 FTReports | 5

FT Innovative Lawyers Europe

Most innovative law firms in Europe 2021

Case studies Law firm transformation Rank Law firm
Submissions
score
Use of data
& tech score
Total
score HQ
1 Winner:* DLA Piper 138 45 183 UK/US
Law firms are starting side ideas, of which three are set “transformation drivers”: 2 Allen & Overy 132 50 182 UK
businesses, exploring new to come to market. sustainability, digital 3 Freshfields Bruckhaus Deringer 133 46 179 UK
sources of investment and transformation and urban 4 Pinsent Masons 133 45 178 UK
5 Addleshaw Goddard 131 45 176 UK
rolling out digital initiatives. Dentons dynamics (covering topics 6 Hogan Lovells 130 45 175 UK/US
The firm launched Helix, such as how cities are 7 Dentons 130 42 172 Global
Winner pitched as a cross between changing). The 7 White & Case 131 41 172 US
DLA Piper a traditional legal practice transformation drivers cut 9 Herbert Smith Freehills 129 41 170 UK/Australia
Law& is a DLA Piper brand and managed legal services. across practice areas and 9 Simmons & Simmons 130 40 170 UK
launched last year as part of Helix specialises in the firm will report revenue 11 Ashurst 128 41 169 UK/Australia
the “radical change” strategy commercial, employment against them. Osborne 12 Travers Smith 129 37 166 UK
13 Baker McKenzie 114 48 162 Global
under way at the global firm. and real-estate law and Clarke is also building a 14 DWF 119 42 161 UK
Already, Law& has been works closely with clients to software engineering team 15 Taylor Wessing 121 39 160 UK
involved in projects provide data insights, legal to create its own legal tech 16 Macfarlanes 118 39 157 UK
including Aldersgate advice and project solutions. 17 Winner:** Gide Loyrette Nouel 126 29 155 France
Funding, a litigation fund, management. Services are 18 Garrigues 120 34 154 Spain
Toko, a digital asset platform charged on a fixed-fee basis. Garrigues 19 Ecija 118 34 152 Spain
20 Norton Rose Fulbright 111 38 149 UK/US
that uses blockchain, Clients report up to 20 A global platform called 20 Paul Hastings 113 36 149 US
and Aiscension, per cent savings on GarriguesNet was unveiled 22 Womble Bond Dickinson 113 33 146 UK/US
an AI tool for previous panel last year to manage client 23 Vieira de Almeida 116 27 143 Portugal
mass expenditure. matters and handle internal 24 Dechert 103 35 138 US
document communications. The 25 NautaDutilh 104 32 136 Netherlands
review. Law& DWF platform gives a single point 26 Cuatrecasas 98 32 130 Spain
27 Kennedys 87 41 128 UK
has prompted Mileway, of access to the firm’s apps 27 Sorainen 104 24 128 Baltics
projects that Europe’s biggest and data, which are 29 McCann FitzGerald 97 29 126 Ireland
are improving last-mile logistics accessible via search and 30 Gómez-Acebo & Pombo 102 20 122 Spain
internal efficiency, company, faced chatbots. Garrigues says *Winner of the FT Innovative Lawyers 2021 award for ‘Most innovative law firm in Europe’. **Winner of the FT Innovative Lawyers 2021
award for ‘Most innovative law firm headquartered in Europe (outside the UK)’. Awards based on RSGi scores for the six highest scoring
including use of data to increasing demand and GarriguesNet has increased submissions (maximum possible 180 points) and a score based on a survey of use of data and technology (maximum possible 60 points)
inform corporate partners’ needed to simplify its real digital literacy across the
pricing decisions. By estate portfolio. DWF called firm, and improved
creating subsidiaries and on Mindcrest, its legal productivity and the ability
using DLAb Virtual, its own managed-services business, to cross-sell.
crowdsourcing platform, and Connected Services, its
DLA Piper has speeded up consulting division, to Gómez-Acebo & Pombo
project launches. deliver an integrated The firm has launched a
technology, process and centre of excellence to
Pinsent Masons legal advisory solution. support contract drafting,
Adam Marsland heads the Among other benefits, which includes people skilled
Pinsent Masons team Mileway was able to in word processing, design
applying Lean Six Sigma collaborate seamlessly with and contract templates. The
management principles to DWF’s lawyers, leading to system allows lawyers to
finance and projects groups faster turnrounds, notably a focus on speedy drafting,
at the firm. The aim is to streamlined tenancy while leaving the
improve efficiency and verification procedure. presentation and design to
remove waste through experts, which cuts the time
better project management. Freshfields Bruckhaus required overall.
So far, this has reduced Deringer
clients’ costs by up to 60 per The pandemic led Norton Rose Fulbright
cent with improvements Freshfields to The firm has set up
such as cutting the time reconfigure its a legal operations
taken for document reviews digital consulting arm
by 75 per cent. Marsland transformation within NRF
leads the training of lawyers strategy. Transform, its
in agile principles, working Moves global change
across the firm and in Vario, included and innovation
its consulting arm. creating a programme. It
machine-learning offers a “health
Allen & Overy team, launching a new check” tool for in-house
The Markets Innovation regulatory management legal teams to use to assess
Group led by David Wakeling platform, and upgrading operational maturity and to
set up an internal tools such as its due offer tech vendor-agnostic
investment fund to raise diligence platform. Some advice. The team includes
capital for research and 900 Freshfields lawyers people trained in law,
development. The aim is to and business services management consulting,
centralise innovation professionals were video-game design and
investment rather than seek appointed as digital neuroscience. Revenues for
funds for individual projects advocates to share best the team quadrupled in
on an ad hoc basis. The MIG practice and efficiencies. 2020.
is treated as a client and
other parts of Allen & Overy Osborne Clarke Researched, compiled and
are credited with income for The firm’s new “3D client ranked by RSGi. ‘Winner’
hours they contribute. The strategy” blends legal skills indicates the organisation
group raised £5m in 2021 and services with sector won an FT Innovative
and has been used to test 14 specialisms and three Lawyers 2021 award
6 | FTReports FINANCIAL TIMES Friday 15 October 2021

FT Innovative Lawyers Europe

Five takes on law firm leadership

T
hese individuals lead five
different law companies
but each has carved out a
unique space in the legal
industry. Their firms aim
to be the best in their particular
niche, whether that is consumer
rights, helping in-house lawyers on
digital strategy, advising young tech
companies or building a diverse legal
workforce.
Simon Levine, global co-chief
executive of DLA Piper, stood out for
identifying and prioritising the
prerequisites for innovation: access
to capital; human-centred design
thinking; and space to experiment.
Mary Ormerod

Winner
Simon Levine
Global co-chief executive,
DLA Piper
Determined to change the
traditional law firm model,
Simon Levine set out to shake
up the firm’s approach to
innovation. He established a
“change council” — a group of
people who are able to drive
and implement new thinking.
In 2019, he set up Aldersgate
Holding to enable the firm to
invest in research and
development initiatives
separately from the law firm
partnership.
Levine has overhauled the
firm’s strategy as well as policies
on human resources and
inclusion. More than 2,000
people have been trained in
design thinking. Law&, the firm’s
rapidly expanding solutions and
products arm, has developed
artificial intelligence platforms
and client-facing tools.
Michael Castle
Managing partner, UK and
North and South Europe,
Deloitte Legal
Michael Castle joined Deloitte
Legal from Allen & Overy two
years ago. His challenge at the
Big Four firm is building a
reputation for its lawyers to rival
the likes of A&O, while also
emphasising the differences.
He has assembled a team of
leaders in managed services,
technology and legal expertise.
Other moves include acquiring
law firm Kemp Little, and
recruiting a chief technology
officer who could connect the
legal arm with Deloitte’s existing
tech portfolio. They set out to
combine Deloitte’s deep
knowledge of clients’ businesses
with specialist legal expertise,
which won Deloitte Legal a
place on telecoms company
Vodafone’s law firm panel.
Shane Gleghorn
Managing partner, UK, Taylor
Wessing
Since becoming UK managing
partner in 2018, Shane Gleghorn
has put innovation and digital
initiatives at the heart of
strategy.
Taylor Wessing competes
globally for work in key sectors
including life sciences and tech,
and Gleghorn has taken it into a
partnership with Silicon Valley
law firm Wilson Sonsini.
Recognising that the life
sciences and tech sectors were
receiving significant funding
from private capital, the firm,
under Gleghorn’s leadership,
created a private wealth team
that is now one of the largest in
Europe. As a result of these
efforts, Taylor Wessing has seen
a near-80 per cent increase in
combined revenue from its 10
most important clients.
Caroline Green
Senior partner, Browne
Jacobson
Elected senior partner in 2019,
Caroline Green has pioneered
several diversity and inclusion
initiatives. For example, Browne
Jacobson has been recognised
in the FT Innovative Lawyers
awards for its decision to
remove A-level and degree
grade requirements when
recruiting.
Green says that inclusion is
important in the fierce war for
talent. Recognising that the UK
Midlands firm cannot compete
with London salaries, she says
Browne Jacobson has to offer
something different. Being more
inclusive, she hopes, will lead to
loyalty and enthusiasm among
associate lawyers. Recruitment
efforts include focusing
outreach on areas of the UK
where social mobility is low.
Anthony Maton
London managing partner and
global co-vice chair, Hausfeld
When he co-founded Hausfeld
in 2009, Anthony Maton
envisaged a law firm that
specialised in class action. As a
practitioner, he was one of the
first to use private enforcement
of damages in competition law
cases in Europe — winning
damages for 100 claimant
groups in one early case.
Maton has overseen the firm’s
expansion and developed the
use of third-party funding and
flexible fee arrangements. In
April 2020, he pledged £1m
worth of pro bono time to help
businesses handle litigation
arising from the pandemic.
He has also championed
diversity: the firm now has
44 per cent female partners,
compared with an industry
average of 33 per cent.
FINANCIAL TIMES Friday 15 October 2021
Case studies New business solutions
Law firms are experimenting with
new tools and approaches
Winner
Dentons
Bretislav Simral,
Europe insight and
intelligence director,
has created a tracker
that helps the firm to
win new business. The
app draws on 20,000
sources and links big data with
the firm’s proprietary knowledge,
presenting opportunities to lawyers
via an iOS app or a web page.
Littler Mendelson
The San Francisco firm has
successfully exported its US
workplace legal practice across
Europe. All clients can now enjoy a
seamless front-end and back-office
service and receive a single bill.
Covid-19 vaccinations have been an
issue for company boards
internationally and Littler’s 350
FT Innovative Lawyers Europe
lawyers have given advice in 11
European countries.
Mishcon de Reya
The law firm launched
MDR Cyber, an ancillary
business that helps
clients both to prevent
and respond to cyber
attacks, by integrating
cyber and legal
professionals. Unusually,
Mishcon developed its expertise
in-house.
Travers Smith
The firm has collated and coded all
the legal data in its document
management system, marking
100,000 papers with labels for 1,500
legal terms. The firm has made its
work open source, so that clients
and other law firms can benchmark
their own systems.
CMS
Breach Assistant was launched by
the multinational tax specialist in
2020. The platform guides clients on
what to do in the event of a data
security breach, helping them to act
speedily and avoid fines. Available
on Android and iOS, Breach
Assistant can give advice on data
protection law in 70 jurisdictions.
Ecija
Ecija Tech is a consulting arm of the
law firm, made up of lawyers and
legal engineers who work with
clients to help with the digital
transformation of their legal
departments. The team employs
automation, artificial intelligence
and robotics, helping to create
integrated tech strategies.
One client has
automated half of the
processes in its legal
department while
others report that their
costs have fallen by up
to 30 per cent after
working with the team.
Lexr
This five-year-old firm combines the
roles of law firm, legal tech provider,
and alternative legal services
provider. As well as traditional legal
services, it offers contract
automation and a blockchain
platform to manage non-disclosure
agreements, and more. Lawyers at
Lexr have to be coders who hold an
MBA or have corporate law
experience. The firm uses
alternative fee arrangements rather
than billable hours.
Pérez-Llorca
The firm built a platform, Pérez-
Llorca Insight, that uses
artificial intelligence for
document review.
Building the tool — as
opposed to using an
off the shelf product
— means that it is
better at interpreting
the Spanish language and
allowing for inconsistencies
FTReports | 7
in the documents. It also acts as a
project management tool.
McCann FitzGerald
Clients can access digital services at
any time via the firm’s portal,
launched in May 2021. This provides
industry news and the ability to
execute documents, as well as
access to learning resources. The
platform was built on Microsoft
Dynamics, which will enable the firm
to add to its capabilities.
Uría Menéndez
The firm’s digital law group has
developed expertise in all areas of
business transformation. It
comprises around 70 lawyers who
sit in practices across the firm,
providing expertise on operations
ranging from fintech to ecommerce
and legal tech esignatures.
Researched, compiled and ranked
by RSGi. ‘Winner’ indicates that the
organisation won an FT Innovative
Lawyers 2021 award
328| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES
FINANCIAL Friday
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Friday 2021
15 October 2021 FTReports
FTReports| |933

FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe

Lawyers’ eyeFirms
for turn
The Big Issue: HSF helped widen access to
more investors
Andrew Harker/Shutterstock
Five trailblazing sustainability leaders
ity of financial markets demands broad legal

detail will tackle

to embrace
skills, says Anna-Marie Slot, global ESG and sus-
tainability partner at Ashurst. Ingrid Gubbay Europe with the Association for
“It’s one thing to have a green bond — but then Of Counsel, Hausfeld Financial Markets in Europe,
you need derivatives that follow on from that, Before moving to the UK, the London-based banking
investor interest, liquidity in the after-market, Ingrid Gubbay worked as a trade body. Slot has also

greenwashing change makers

and the whole system needs to be transparent,” senior lawyer for Legal Aid helped develop products to
Contributors she says. “Lawyers can bring to the table differ- NSW, Australia, where she educate Ashurst’s clients,
ent approaches learnt from different businesses brought group action cases including ESG Ready, a
Kate Beioley at different times.” against companies and the Karyn Harty digital resource on European
Legal correspondent As fears over greenwashing increase, how- government. In the UK, she Partner regulation of sustainability in
ever, so does the demand for sustainable became principal legal adviserMcCann for FitzGerald financial disclosure. In addition,
Emma Jacobs finance to be better defined and subject to Which?, the non-profit consumer rights she played a role in setting out Ashurst’s

S
Work and careers writer robust measurement and reporting. The legal organisation. In 2007, she joined As aHausfeld,
commercial disputes
2023 sustainability goals, which include a
everal of the people on this list ideas from outside the law, and gaining trust sector is moving swiftly into this new area. which specialises in litigation,lawyer,
and now Karyn Harty 20hasper cent reduction in carbon emissions
Jane Croft have won support from their law by building relationships and empowering One example is voluntary carbon markets. As carved out a nichefrom
heads its human rights and environmental in Ireland
travel (the firm declared it was
Law courts correspondent firms for instituting radical people across the firm. more companies offset their emissions with the teams. Two years ago, she by encouraging greater use carbon neutral in January 2020).
Sustainable finance Law
Maija Palmer
an investment platform created
Pinsent Masons. “Lawyers aredegree,
change,
in a good
bydespite
law firm
place
writes
their lack of a law
to Ormerod.
Mary
Caroline Firstbrook, winner of an FT
Innovative Lawyers “change maker” award,
use of carbon credits — generated by activities
such as tree planting — critics have highlighted
represented a group of 15 young
people, including Swedish
of technology in the law.
In 2015, she received Adrian Walker
firms can use their expertise
Innovation editor, Sifted use the tools availableEven to amake sure things
practising lawyerdon’tcan struggle to did just this, and gained backing for policies the lack of standards and verification. activist Greta Thunberg, approval from the Irish Partner, Hogan Lovells
to test the veracity of ESG
Philip Georgiadis
go wrong.” convince their business that it should
Initially, rapid growth in the sustainable
change, especially if it is profitable.
by demonstrating to partners how a more
commercial mindset could yield immediate
Lawyers can help to provide an assurance
that such offset projects do contribute to emis-
which brought a petition to courts for the country’s first technology-assisted
the UN Committee on the review, when lawyers had to review
In 2008, Adrian Walker
1.8m documents
anticipated
document
the trend forfor
a
claims, writes Sarah Murray
Acting transport correspondent finance market calledChange for legal expertise
makers on the
say they have to find a and long-term results. sions reduction. Part of this will mean the crea- Rights of the Child to case (Irish Bank Resolution Corporation law firms v Quinn).
to haveAs the first
purpose
structuring of financial
balance products.
betweenItsetting gave Cad- themselves apart Profiles compiled by RSGi researchers and FT tion of a clear definition of an offset from a legal demand action on climate use of the technique in the Irish courts, it waswhencontroversial
he helpedas

R
statements
Patrick Temple-West walader, Wickersham through& Taft, for instance,
innovation groups theor bringing in editors perspective, says Ingrid York, a partner with change. Gubbay champions many Irish firms had large, profitable to launch manual
Hogan review teams.
Lovells’s
Governance ising demand for sustainable finance opportunity to work on a pioneering ESG collat-
reporter White & Case in London. the role of lawyers in tackling Harty founded and leads the legal-technology
projects practice withsolutions
the
means the work of lawyers now eralised loan obligation (CLO) on behalf of its “How do we treat it? Is it a set of contractual global warming. She chaired the division at McCann Fitzgerald. sloganThis involvesequality
“improving implementing
of access
Natalie Aranges Carterfrom structuring green bonds client, MUFG Securities Emea, part of Mitsubi- rights, a physical asset, or something else, and London Climate Change Litigation the firm’s digital strategy
forums, and supporting
to sustainable colleagues
infrastructure in
and energy”.
Law firm to helping
senior to draft environmental shi UFJ Financial Group, the Japanese lender.
associate how do we transfer it? Those kinds of things which were held to coincide with finding
the new ways of Hedelivering
also took legal
part inservices.
the launch of an MBA-
legislation. But, as billions of dollars While ESG language is already included in the excite us as lawyers and get us out of bed,” says negotiation of the Paris Climate style business skills course for social
pour
SarahintoMurray
environmental, social and governance eligibility criteria of Winner
some CLOs, this one was York, who is part of the Taskforce on Scaling Agreement in 2015. enterprises run by HL BaSE, the business
(ESG) investments,
Freelance journalistthe legal sector has another structured so that the statusFirstbrook
Caroline of each asset in the Voluntary Carbon Markets, a private sector-led enterprise practice at the firm. In
role: to tackle so-called greenwashing. CLO was assessed Chief beforeoperating
it was acquired officer and Eileen Burnsrecommendations
initiative that is developing Nicolas Jean Ben McGuire 2021, Walker was made head of
The
Reena absence
SenGupta, of standard measurement
Yasmin Lambert, Mary and will be subject to due diligence
Clifford Chance throughout the Such broader access has so far been curbed by vides an app to enable them to track their effect sure ESG funds are effective is to empower fund for better transparency Chief digital officer
and verification. Partner, Gide Loyrette NouelManaging director ESG and in that role he
reporting
Ormerodmetrics for ESG investments means life of the deal. the cost of the complex due diligence demanded via live updates, stories, videos and images. managers. This drove Pinsent Masons to create Regulation willArthur
also beCox
essential in combating French lawyer Nicolas Jean Simmons & Simmons advises governments and
that
RSGi companies and funds can make claims “[The CLO] actually lookedaninto
Originally engineer and then abystrategic
the underly- ESG products and funds, and the high From implementing data protection to draw- Datalis, an investment fund platform that pro- greenwashing. Lawyers can provide input to is an adviser in financial Solutions financial institutions on
about their social or environmental impact that ing borrowers, the companies consultant,and theirFirstbrook
Caroline loans, to joinedamounts required as a minimum to invest. ing up agreements for partner relationships, the vides data and automated reporting on sustain- policymakers during Previously a consultant
consultation periodsat and markets in countries projects connected with
areHarriet
exaggerated,
Arnold,or Amygreenwashed.
Bell Fortunately find out what they’re all about,”
Clifford Chance says asClaire
its chiefPud-operating To break down these barriers, lawyers at Her- HSF team ensured the platform could operate able investment opportunities. explain what theAccenture,
new rulesEileenmeanBurnsfor clients. including Ivory Coast, Benin Fifteen years in the British sustainability, which have
forCommissioning
lawyers, bringing clarity to ambiguity is a dicombe, a partner
editors at the
officer sixUSyears firm’sago. London bert Smith
She set an agenda for Freehills worked with The Big Issue smoothly. “Datalis is helping to educate those fund man- With their eye forjoined detail,Arthur Coxbe
they will in able
2018.to see and Senegal. Inspired by army gave Ben McGuire the included the Met Office’s
fundamental skill. office. radical change and now leads the— the campaigning organisation behind the “We were advising on governance and set-up agers around what their funds should look like, potential problems Since then,
during theshe has process.
drafting French President Emmanuel ability to help people make acquisition of a
“There
Cat O’Neil is a massive amount of capital being As well as preventing
business greenwashing
professionals, through street magazine
or “non-lawyers”, at sold by homeless people — on structures, on key foundational and constitu- in order to attract as much capital as possible “One extra word launched
can changea consulting arm, of
the meaning Macron’s call in 2020 for debtchanges. In his role as supercomputer powered by
putIllustrator
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global firm,priority
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says Puddicombe. relief in Africa, Jean called oninnovation
his chief at the firmrenewable energy. He is on the
poses the risk that people will claim to be invest- ponents of sustainable and human is to make ESG chain-based ESG investment platform.
financeresources. associate at the firm. “And we did a lot of work and impact,” says Warner. important when strategy and initiated
we’re reviewing a
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ingSteven
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in a partnership
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Warner,
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the commercial discipline that she had rated
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by theCox has rolled out new ediscovery
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at the
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Picture editor This was not an easy task: law partnerships are often more tolerant of idiosyncratic dramatically cuts the time that lawyers need to create
without draftsunsustainable
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behaviour among fee earners. When Firstbrook showed Clifford Chance’s bosses that new of contracts. Thanks to Burns’ new approach, thedebt.
public As a practitioner,practitioners to develop new revenue-generating
associate Ingrid York services,
Case studies
For advertising details, contact:
Alex Roszkowski, +44 (0) 7481 606760,
asset owners improvemeasures
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access but the supplier structures, including the first reported £18m turnover last year. capital markets practice,
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available countries. The groupBaker— which includes
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Taylor Wessingthese certificates to be traded Freshfields
legalBruckhaus
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product-as-a-service officer
contracts. The long- Partner, Ashurst innovation officeron its $3bn green capital note, which
Cadwalader, Wickersham & Taft ministers from Ivory Coast, Benin, Republic as assets by retail investors. In the long Deringeran alternative payment mechanism to direct DWF a circular economy.
term goal is to promote In 2019, Anna-Marie Slot moved Macfarlanes
from Hong combines synthetic securitisation with
The lawyers assisted the Europe, Middle of Togo and Senegal,Ben along with who leads
Allgrove, term,Barron
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20 value of the debits, as consumers are sent requests for a Kong to London and was appointed investment goals aligned to the UN’s
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helpinguntil it is cheaper
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Financial Group in developing the first and lawyers — has provided
arm of Baker pro bono McKenzie, of £25. The lawyers constructed the legal to invest
vision that inhasreducing
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finance andfinal
investing environmental, social and established the firm’s legal Two years later, she helped to
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European Innovation
collateralised loan obligationaward advice to African states hasnegotiating
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Mastercard has used this framework to group developedquarter
a toolkitofto
itssupport
financialclients
year, governance (ESG) and technology team in 2016, put in place creative legal
(CLO) that will consider environmental, creditors. It will also publish a white
title of chief paper
innovation vetting funds to measure their impact and Pinsent
leader Masons He
in technology. which seconds
launch aassociate
request-to-pay app for its to April 2020,
in lending and borrowing, with which
a focusledonto sustainability. As a developing it into a fee- solutions that enabled a
CO-ORDINATED
social and governance (ESG) factors across offering recommendationsofficer.to governments avoid any greenwashed products. They also was Thetheimpact investment
founding partner team
of works with lawyers customers
to clients, and
and tasks
a number of financial twoincludes
sustainability. This profit warnings
an initialand a
review practitioner, she was earning practice area that notes issuance by Société
allACTION
its investments. Some CLOs include and financial institutions Heon wherehis time
divides protected the mission of the platform with itsclients
Siliconthat areoffice,
Valley designing social and them with finding better
institutions in the UK and Europe are also fall in the share
of the client’s sustainability price.
policies, training involved in many of the earlydeals directly with clients. Générale, the French bank,
The FTinhas
language their eligibility criteria to investment can havebetween
a genuinelegal impact.practice, where “golden
he is anshares”
expert—ingiving
digitalThe Big Issue
media environmental
winning impact
clients and thenfunds,
making such
goodas use
the of what he learnt ways to using
deliverthe
legal services.Benefits
framework. He launched Freshfields Lab
include on in
various risks andAtbenefits
this point, Sir Nigel Knowles took overgreen
of sustainable as chief
bonds executive
issued in Asia- The 20-strong team comes fromfor a variety of disciplines
a risk transfer worth
launched
restrict a new
the types of loans that can be and technology, and drivingspecial rightsadoption
technology compared with other
from ongovernment
his return toand privateapplying
London: sector-backed
the innovative approach of 2019, which he now
greater runs alongside
flexibility and control associate Lukas Treichl.
for consumers, and Matthew
finance, and guiding Doughty
clients through thewas appointed as the firm’sInfirst
Pacific. her chief
new role, she including data science, product development $3.4bn allocated and legal
for impact
Innovative
included to those with certain ESG scores. Herbert Smith Freehills contract review tools and ediscovery shareholders. Impact
to more fromedge
cutting the investment Cleanstart-up
a tech Growthto Fund. This
Taylor invests inculture
Wessing’s clean and operations. The firm’s
andinnovation
a reduction arm
in aims
failedtodirect
develop tech-based process of introducing
debit operating officer. Doughty developed a 100-day
sustainability-linked helps toturnround
develop industry practice. investment.
ForLawyers
this CLO,award,
however, the lawyers created a The firm helped The projects.
Big Issue — the funds is recorded on a blockchain platform. tech
Barronbrands,
set upincluding
a team of Piclo, a smart energy
50 “innovation ambassadors” solutionspayments.
to client problems. Among more than 30 such loans that incentivise plan, focusing
borrowersontocombining
achieve core legal advice with access
standards to Services offered by the team include
for sustainability-linked Last year,Vantage,
York was which uses
framework
celebrating to test the ESG compliance of organisation behind theOne street magazine
example is a collaboration with SparkBeyond, a company,
across andand
the firm Everyone In, a fund
introduced to tackle
the ideas of design thinking. solutions are a simulation tool that quantifies exposure in ESG targets. its Mindcrest and Connected Services offerings: finance.allShe
three are
supports AI and data analysis toolsappointed
the non-profit to ease the totransition
a task force byfounded
financial
thecollaboration
assets regularly onthroughout the deal sold by homeless people — to in
specialist launch
usingan Linklaters and
artificial intelligence Walkers
to solve Ireland
problems. Thehomelessness. The lawyersClosing
team has implemented developed
Folders, a transaction mass claims and a notification platform for data breaches.
NautaDutilh now offered
Researched, compiled to clients
and ranked as a single service. Climate Bonds Initiative in advising
by RSGi. institutions from London
capital by Markinterbank
Carney, formerofferedgovernor
rate (Libor), and
of the
lifetime. The firm also worked
legal challenges. More at: ft.com/ closely with investment platform, The
Baker Big Exchange,
McKenzie employs Walkers
this acted
technology as
to Irish
predictcounsel
the and Datalis,
management a platform that
platform, gathers
and an apphistoric
called data
Eureka, which is These solutions
Working combine off-the-shelf
with the bank ABN Amro products
in the with the‘Winner’ indicates theDoughty’s effortswon
organisation contributed
an to an improvement in group
markets clients Bastion,
and creating the a suite of Bank
first ESG tools ofaimed at family
England, whichoffices that combines
promotes
collateral manager
innovative-lawyers NIBC Bank in helping which enables people to
volume invest
of in ESG
mergers and
and Linklaters
acquisitions andas English
help findin helping
new London-
clients. on
used investment
to organise to help
new inexperienced
ideas. Out of 50 fund
such ideas generated firm’s proprietary
Netherlands, technology. The team
the firm created ensures the
a contract revenues
FT Innovative Lawyers 2021and a rising share price, as well asguidelines
award bringing for newthe high-yield markets
contractin management, data carbon
voluntary analytics and project
markets.
So far, the pilot projects have been a success. in its first four months, eight have become projects. proprietary components are replicable and scaleable. clients to the firm. management.
10 | FTReports
Eight firms building specialist skills
Ones to watch
Some small firms in
mainland Europe outpace
larger rivals with bold and
entrepreneurial projects,
says Mary Ormerod
Aequo
Ukraine
Leading sustainability
The firm issued its first sustainability report in
May, pre-empting any regulatory requirements
to do so in Ukraine. It includes a record of how
the firm operates its own business and
contributes to the community through pro
bono work, and how it advises clients on
incorporating environmental, social and
governance (ESG) standards into investment
and operations. The firm’s chief innovation
officer, Kristina Dziadevych, is pushing
practitioners to work in new ways. These
include introducing legal design principles to
make due diligence reports more user-friendly,
and launching an alternative legal services team
that has developed new solutions, such as a case
management tool for litigation.
Antas da Cunha Ecija & Associados
Portugal
Intelligent knowhow
Under the leadership of partner Nuno da Silva
Vieira, the firm has created a legal intelligence
department that experiments with offering
technological solutions to challenges faced by
lawyers. Projects include: the exploration of
FT Innovative Lawyers Europe
smart contracts, where
blockchain technology automatically fulfils
obligations; a legal augmented intelligence
programme with technology company IBM;
and a knowledge management application that
standardises the firm’s knowledge, making it
easier to train junior lawyers.
Dottir
Finland
Lean designers
Helsinki is seen as the global centre of the legal
design movement, and Dottir is one of the law
firms leading the way in integrating design
principles with legal practice. Focusing on the
user is a core strategic principle at the firm. It
has employed lean working principles, whereby
lawyers work iteratively with clients in order to
reach a legal solution more quickly than they
would otherwise, building and improving as
they go along. They also work from documents
that are user-friendly and accessible. This
model is particularly effective for start-up
financing work, and the firm handles around
half of all start-up financing rounds in Finland.
Ellex
Estonia
Digital movers
Ellex lawyers have seen the benefits of thinking
digitally in their practice, from using
technology to simplify case management to
reaching clients via social media for a class
action case. Partner Ants Nõmper led a
comprehensive response to challenges that
have arisen from the pandemic, such as
advising the Estonian government on policies to
promote vaccination uptake and helping to
compile guidelines on the distribution of
medical resources. Digital expertise proved
invaluable, with Ellex lawyers drafting terms of
service for an occupational health provider’s
app, assisting a medical centre to set up a digital
clinic to host remote appointments, and helping
health tech start-up Certific to launch an
application process for digital national
immunity passports.
Goksu Safi Isik
Turkey
Building platforms
As a specialist in large, complex projects for
clients that include Istanbul Airport, Goksu Safi
Isik identified a benefit in using digital
platforms to manage cases. The firm has a
separate technology business called Newmind
that worked closely with lawyers to create a tech
platform called Mecellum. This uses artificial
intelligence and automation to assist with
project management, due diligence and
document drafting. As well as developing new
products, the additional expertise has attracted
more talent to the firm and helped it find a
niche in developing Turkish language AI for
legal tech.
LCA Studio Legale
Italy
Design at the core
Partner and serial innovator Marco Imperiale
led the creation of a legal design practice at the
FINANCIAL TIMES Friday 15 October 2021
Illustration: Cat O’Neil
firm, providing training
to clients as well as
consulting on projects, such
as making privacy policies and
other documents more user-
friendly. LCA’s innovation team is
experimenting with tech tools such as natural
language processing for document searches and
blockchain for applications in intellectual
property protection.
NGL Legal
Poland
Networked boutiques
After launching NGL Legal in 2018, rather than
trying to expand the firm in the traditional way
— through new hires and acquisitions —
managing partner Krzysztof Wiater founded
NGL Symbio: a partnership between six
independent law firms in central and eastern
Europe. This alliance covers 50 jurisdictions
and communications are shared between the
firms, allowing clients to go wherever the
resources and expertise are, and enabling the
firms to collaborate when needed. Firms in the
network are running joint working groups for
practices including banking and finance and
special topics such as cannabis law.
Wiersholm
Norway
Market focus
Under managing partner Morten Goller, the
firm has restructured its practice groups by
market sector rather than legal practice
expertise. Lawyers are trained in mapping out
legal processes and using agile methodology to
innovate more quickly on projects — such as in
creating a new contract automation tool in
collaboration with media client, Schibsted. The
business development and client development
functions have been expanded to help the firm
build deeper relationships with clients.
2812| FTReports
| FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES Friday 15 October 2021 FTReports | 13

FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT Innovative Lawyers Europe

Airlines survive feel

Young lawyers to flymost
another day
Strain on the brain: most UK lawyers
were under pressure even before
the pandemic, says one charity
Getty Images

at risk from burnout

metabolic diseases and early Alzheimer’s. This
is serious, and it’s not just one firm to blame,”
Aviation in crisis Legal effects of the pandemic. Bankruptcy
proceedings in 2020 effectively wiped out its
she says. Fixing the culture will take years, “and
a legal revolution”.
innovation was key as shareholders and its operations have shrunk Some firms are now using wellness initiatives
companies restructured, dramatically.
The ownership of NAS is complex but it
as a competitive advantage or a selling point to
recruits, amid a talent war has seen retention
writes Philip Georgiadis consists mainly of Irish-owned subsidiaries and sign-on bonuses hit $250,000 at US firm
Mental health Law firms are to a record-breaking period for deals on the one 2021. Conditions reported included low mood, under a Norwegian umbrella company, which Kirkland & Ellis — with a knock-on effect

W
hand and crisis-hit clients seeking advice on the anxiety and depression. allowed restructuring to take place in the elsewhere. Soaring demand for legal advice in
offering hen wellbeing schemes,
Covid tightened its grip on other. Private equity firms experienced their The most affected were younger lawyers, who Republic of Ireland, with a parallel programme areas such as restructuring and mergers and
but are they ‘sticking
the world between February
and April 2020, the effect on
busiest six months ever in the first half of the
year, putting further demands on corporate
often have less space to work in at home and feel in Norway. It was the first time an Irish
less financial and job security compared with examinership was used to restructure the
acquisitions has created a need for more people
— but just as burnout is causing attrition,
plasters’the foraviation
a bigger
industry was lawyers already under strain due to the more senior colleagues. According to LawCare, obligations of a non-EU company. especially among junior employees.
devastating. As borders closed, The move reduced the NAS fleet from 150 to Gisèle says: “The first problem is burnout and
theproblem?
skies went quietBy Kate searched
Beioleyfor pandemic. those aged between 26 and 35 displayed the
and airlines “The law industry has a horrible culture,” one highest burnout scores, and they also reported 50 aircraft, cut Norwegian’s debt by about talent retention. I get re-referrals from
somewhere to park grounded aircraft. lawyer told consultancy RSGi in a recent survey. the lowest autonomy and highest work $7.5bn, included a capital raise, and terminated recruiters who are either sending me burnt-out

S
The industry had to press “pause” — but, in “Firms talk about wellbeing but as soon as a intensity scores. aircraft orders worth about $10bn. Lawyers in lawyers, [or] wanting to know which firms offer
companies’ headquarters,
oaring demand activity
for legal services has Urgent:
reached Malaysiasomething
client demands Airlines wanted to cutofits obligations
all pretences on have
Firms aircraft leases
tried quickly
to fix this by hiring
— Shinya“burnout
Sawai the case say the restructuring could not have the best wellness packages,” she says.
fever pitch asled
they
to raised cash,
a mental soldcrisis
health assetsamong
and, caring about employees go out of the window. advisers”, such as Charlène Gisèle, a former been achieved under Norwegian law alone, According to Rimmer, law firms must
in many cases, restructured
lawyers theirin
and a boom businesses.
wellness Malaysia
No firm feelsAirlines
able wanted
to say notobecause
“get on another
with it”, entities
JonesinDayvarious jurisdictions.
associate turned executive coach. particularly the termination of leases that were address the problems of long hours and
The aim was schemes
to surviveoffered
the collapse passenger Montgomery
by lawinfirms. firm will saysays.
yes.”It was still paying its For Malaysia
Gisèle, Airlines,stress
who suffered English law washerself, covered by the Cape Town Convention, which
symptoms insufficient support in order to stop making
numbers andBut avoid corporate failures
campaigners say such—policies
and obligations
Accordingin full
to and “needed
a recent reporttoby
find a
LawCare — preferable
says there toisthe courts in its
a “burnout home
crisis” country
among lawyers: protects high-value aviation assets. their lawyers ill.
lawyers were involved
are “sticking at designed
plasters” every stage.
to cover solution
a legal .mental
. . as quickly
healthas it could”.
charity At the same
— a majority of the because
“[They]it isare
recognised globally.
social animals andAonescheme
thingof that Ruairi Rynn, partner at law firm William Fry, The people in a legal practice are one of its
Few airlines
a legal sectorhad time towith
obsession spare. With high
“presenteeism” time, the lessors
lawyers did not
it surveyed inwant
the UK to said
see the
theysudden
had arrangement
alleviates the turned
anxietyoutthat
to becomes
“an obvious
with working which acted for the examiner in the Irish greatest assets, she says. If they really want to
fixed
andcosts, the industry
working burnt through about
long hours. return of their assets,
experienced mentalespecially
ill-health,large airliners,
either clinically solution for a is
long hours lease”, MontgomeryThe
the camaraderie.” says.loss of face- process, says working in an Irish court with a address the issue of mental wellbeing, they
$150bn in cashare
Lawyers within
busiermonths, saysthanks
than ever, the as or
they
selffaced logistical,
diagnosed, storage
in the and to early
12 months Lawyers had to hunt
to-face teamwork for innovative
during the pandemic solutions.
and the Norwegian
trained 500 company was “unique
volunteers from acrossandtheunusual, from managers. The charity found that LawCare, notes that legal practices are matters are progressing and flag concerns.” “should focus on investing time and
International Air Transport Association. Calls maintenance costs with no hope of any new Allen & Overy
onset of “Zoom helped Virgin
fatigue”, isAtlantic through
a particular concern. butorganisation
ultimately highly successful”.
to support colleagues, and regular catch-ups or appraisals were the most increasingly introducing wellbeing support, Gisèle warns that offering a gym resources in training and supporting leaders
with lawyers had to be hastily arranged. “It was leases for months. the first restructuring
Gisèle under thefor
creates programmes Julylawyers
2020 that Throughout
confidential the process, lawyers
conversations are onand airline
offer. helpful kind of support, emphasising the including mental health apps and champions. membership, lunchtime yoga, and healthy food to manage, and give them the time and space
obviously a challenging time . . . even to this Freshfields turned to the English courts and a Companies Act update,
aim to improve which allows
their physical courts to
and mental management
Similarly,became used tohas
Hogan Lovells meeting
hiredvirtually
external importance of a face-to-face connection in However, she adds: “Although these may have in the canteen “just isn’t enough”. For her, “the to do this well”.
day, I have never met the clients despite having scheme of arrangement — a tool that is often approve
health,aincluding
plan eventheirif notrelationship
every class ofwith work. and, in someLeading
provider cases, there
Mindswasto no
runphysical
sessionsface-
on improving mental health. some benefit, they are in effect putting a biggest issue is the ‘work hard’ versus ‘work
done this massive job with them,” says Craig used in financial restructuring but never before stakeholder Such schemes has backed it. White &
are increasingly Case helped to-face
common topicscontact.
includingThebuilding
rapid adoption of
relationships, better Two aspects of the job responsible for putting sticking plaster over a bigger problem, the smart’ issue. It’s the culture of working long
Montgomery, a partner at Freshfields with aircraft leases. The leaseholders agreed to Airamong
France-KLM
law firms, navigate
manyEU ownership
of which and
are hiring videoconferencing was a success
sleep and eating healthily. Andbut airline
Ashurst’s lawyers under particular pressure, says the accepted working practices in law that hours as a gold medal of stellar performance as
Bruckhaus Deringer in London. a class arrangement as a replacement for the state-aid rules as it refinanced its debt. to run executives,
More on FT.com
external companies and consultants initiativeswhose
includefortunes rely onacorporate
establishing confidential charity, are having every moment monitored undermine mental wellbeing. opposed to being efficient, and getting out the
Freshfields helped state-owned Malaysia previous ad hoc leases, which made the Many airlines
sessions have shrunk over the past 18
and training. travel,
mentalarehealth
glad totelephone
hear businesses say that they
service. via billable hours and a firm culture in which “We know from our Life in the Law research door.” The “face-time” culture needs to be To read further comments
Airlines to reduce its obligations on leases for settlement for Malaysia Airlines more efficient. months, and one
Herbert Smith of the most high-profile
Freehills has set up mental still prefer in-person
According meetings.
to LawCare, the“If I were doing
programmes that lawyers are expected to be present or available that the most valued wellbeing support in the addressed from the top and the bottom. and statistics on this story:
aircraft as part of its restructuring. Such leases The crisis underlined the international casualties has been Norwegian
health “huddles” Air Shuttle.
led by an external The it again
consultant makeand thehad
mostthe option, Ito
difference would stillare
lawyers go to see
those around the clock. workplace is regular catch-ups . . . time with “I see a number of partners who came to me ft.com/innovative-lawyers
are a primary focus of any reorganisation in the nature of the industry. While many airlines Oslo-based
in some ofcarrier grew rapidly
its practice groups.inThethefirm
2010s,
has also thethat
client,”
focussays Montgomery.
on face-to-face “There is
meetings andnosupport Elizabeth Rimmer, the chief executive at managers or supervisors to talk through how after cardiovascular issues, strokes,
aviation sector as they account for a significant have a country’s name on their aircraft moving into low-cost transatlantic flights, but substitute for doing that in person — which, of
chunk of a company’s costs. fuselages, their assets are mobile and they have fragile finances meant that it was exposed to the course, is good news for the client,” he says.

Case studies Aviation
When Covid-19 led to travel bans,
lawyers navigated the complexities
of processes such as restructurings,
Case studies move between desks and work with Garrigues Hogan Assessments leadership personality associates. The firm has also partnered with particularly among colleagues whose work
People and skills
different groups but will still know where to
find particular experts.
Young lawyers are helping older colleagues
to become more digitally savvy. The
tests into a programme that mentors senior
associates and managers in preparation for
the Charities Aid Foundation to offer work
experience to disadvantaged young people.
means they do not regularly interact with
others. Working with a coaching
Spanish firm entered 60 pairs of younger being made partner. Training has become consultancy, the Changery, the scheme
state-owned company going into court. The plan will inject £1.2bn because it was already in Dentons aircraft, a capital raising of up and senior colleagues into a reverse- more data-driven and personalised, and as Vieira de Almeida includes sessions with a coach, time off to
insolvency. over 18 months.
Winner financial difficulties at
the onset of the
Trainees at the firm
modules to introduce
to NKr6bn
can take($725m)
debtthem to
six
reduction of
and a mentoring scheme to increase the older
lawyers’ knowledge of social media, agile
well as professional feedback it
includes guidance on skills such
A “learning journey” programme has
helped increase the number of
think about priorities and assignments.

while limiting loss of control. Allen & Overy White & Case Simmons & Simmons pandemic. But the innovation practicesNKr65bnsuch as ($7.5bn). working and blockchain. By the end of 10 as stress management. staff taking part in personal PLMJ
In April 2020, Virgin Atlantic Air France-KLM‘s ownership The firm procured lawyers
an app helped
calledthe legal design and robotic meetings, each pair had to propose a way to development at VdA. Using a survey of 100 lawyers, the firm has
Winner Airways, owned by Virgin Group and structure includes the French and
HighNetWork airline
that usesaccess state
the positive process automation. A&L Goodbody improve the way they work, such as by Cuatrecasas Individuals decide the skills been looking at unconscious biases, working
Freshfields Bruckhaus Deringer Delta Air Lines, brought in Allen & Dutch states, Delta Air Lines and
reinforcement aid under
and indirect suggestion of They can also work on Voyager Aviation automating processes or increasing A pilot programme is they want to hone, in partnership with Nudge Portugal, a
As the pandemic struck airline Overy to help it avoid going into state-backed China Eastern Airlines.
nudge theory torestructuring
help lawyerslaws improve their projects with real Holdings, an aircraft collaboration. allowing 50 of its lawyers choosing from five general behavioural science agency. It identified
revenues, state-owned Malaysia administration. So, rather than seek a direct loan development
business instead,skills.
including
Employees use applications, suchleasing
as a company based in to decide when to work at skills and another 17 that biases such as a tendency to give more
Airlines considered a Chapter 11 Virgin Atlantic was one of the first from the French state, which
the would
software in negotiating
personalisedwith private
sessions Ireland, was hit badly when
tool that extracts Taylor Wessing home or in the office. specifically relate to their weight to evidence that supports rather
insolvency. The lawyers devised an companies to apply the UK’s 2020 have made France the majority shareholder
comprising six-minute dailyAtlantic
increments. Gateway
The to information thefrom
pandemic
the UK’sleft its airline clients Its early adoption of flexible working gave Focusing on tasks rather practice area and to their than contradicts ideas. The firm has shown
alternative solution using the corporate insolvency and owner, the lawyers secured a uses gamification,
app sell a 22.5forper cent stake
instance to in the official corporate
either unable to pay bills or needing
register, the firm an advantage when the pandemic than how much time is spent personal development. the findings to staff. It is also testing a “pre-
English scheme of arrangement to governance bill, designed to prevent financing deal whereby a encourage lawyers airlineto to
talkthe
toPortuguese
new contacts, state. Companiesto renegotiate
House, to use leases.
in This left hit. During the pandemic, the firm has working is proving effective. It mortem” approach, where someone joins a
create cost efficiencies in the client’s companies having to file for shareholder loan of €3bn and
was features a league where lawyers can company Voyager
search unable
forms. Soto pay
far 80$415.3m of welcomed the views of staff on its role as an found lawyers seem to perform Herbert Smith Freehills strategy sessions to challenge ideas.
aircraft leases. This reduced bankruptcy because of the recapitalised through a deeply
compete for higher William Fry
scores. traineessenior notes part
have taken owedinintheAugust 2021. employer, including fortnightly better when allowed to manage their work The NeuroLeadership Institute helped the
liabilities by $3.6bn and cut rents by pandemic. Its lawyers lobbied to subordinated hybrid securities The lawyers represented the The law firm demonstrated how an
programme. surveys. To improve diversity independently. Office time is best used for firm design a training scheme for senior Morais Leitão, Galvão Teles, Soares da Silva
up to 40 per cent. remove terms from the issuance. In addition, theyBaker
combinedMcKenzieexaminer KPMG in the restructuring Irish scheme of arrangement could it used blind interviewing in collaboration and networking, and for associates who are looking to become & Associados
Freshfields Lab, the law legislation that would this with a €1bn capital increase
As the pandemic of eases,
Norwegianthe firmAir.expects
The airline is DLA Piper be used for the restructuring of the its 2021 summer vacation mentoring sessions. partners; 60 have taken part so far. Partners The firm used gamification principles to
firm’s technology arm, have excluded Virgin through a public offering.that
Thatmost of itsmostly
peoplemade up oftwo
will work Irish
to subsidiaries, existing
The firm’s healthnotes, thus convincing
and wellbeing steering scheme, which led to a from across legal practices and business design a platform to assess job applicants in
used artificial from benefiting. They meant the financing was classified
three days a week whilein the parent
office andcompany
the rest is 98.49 per
group focused oncent of noteholderssafety”
the “psychological to 20 per cent increase in La Scala operations contributed to the curriculum an early stage of the hiring process. As well
intelligence to review helped the company as debt, which does not carry
of thevoting Norwegian.
time at home. The lawyers
Baker McKenzie is completed back anThe
of employees. out-of-court
firm used deal to help
surveys to invitations to Scala Società tra Avvocati renewed its and the learning environment was as being more efficient, the platform helps
contracts and created propose and agree a rights or affect the shareholder
moving its London a scheme
office of
to arrangement
a more centraldeal in identify
the Voyager
priorities,write down its
including: debt and
personalised participants from black welfare strategy for employees and now has optimised using techniques such as cut unconscious bias by allowing applicants
a tool to search for new restructuring balance. Irishincourts,
location in the City 2023 anddemonstrating
the firm’s to thelearning,avoid Chapter
simplified 11 insolvency.
feedback, leadership and minority ethnic a bonus scheme that marks personal repetition and imagery. a chance to show their skills early on; it also
specific language in the plan with creditors leaders have taken Norwegian
the chancecourtsto that
opt forthisa was trainingResearched,
and retirement compiled
planning.andThe
ranked
firm backgrounds. milestones, such as marriage or children tells applicants more about the firm.
documentation, which and had the procedure PLMJ smaller workspace consistent
that willwith Norwegian law. The
encourage has seenbyaRSGi.
rise in‘Winner’ indicates
the proportion ofthe
staff starting school. Efforts to improve diversity NautaDutilh Researched, compiled and ranked by RSGi.
speeded up negotiations. recognised by the US TAP Air Portugal was unable to
collaboration. restructuring
Instead included
of separate officesa reductionwho
in sayorganisation
they have good wonaccess
an FT Innovative
to learning White & Case have led to women accounting for 38 per The firm launched a coaching programme to ‘Winner’ indicates the organisation won an
This approach avoided a Chapter 15 bankruptcy code apply for state aid under EU
andrules the airline’s
allocated spaces, people fleet
willfrom
be able150 to
to 50 and feedback.
Lawyers 2021 award The US firm has integrated cent of partners, and 78 per cent of senior tackle stress and improve wellbeing, FT Innovative Lawyers 2021 award
2614| FTReports
| FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES
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FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe

Fintech pioneers navigate

UK law firms
Moving forward: City firms are taking action graduate
attorney interns,
at Gidewe went toNouel,
Loyrette a widerassisted
talent with It allows 50 hours
NFT-based artwork work
doesa year on diversity, give
not automatically
to try to retain diverse solicitors pool,”
thissays Aslam.itThis
by making clearinvolved
that SociétémoreGénérale
than 30 was such theasbuyer
mentoring and outreach,
the copyright, unlessto count
this as
is specified,
Esan Swan/FT lawproviding
firms collaborating
custody as aontechnical
the best service
approach to as billable
and, meaning hours.
theThe NFTcap on hours
owner may not is because
be allowed“we to
target
such, the desired
would notcandidates.
need additional “We’ve got to
authorisation. don’t want toor
distribute stop people from it.
commercialise doing
Andlegal
just work
because

the law’efforts
s grey areas
equality, also published in 2020. It found City makeItsurehelped we are
thatdoing it forhad
Lucchesi the worked
industryat the that gets them
a piece promoted”.
of digital art is on the blockchain, there

boost
law firms’ preoccupation with early rather
French than just oneauthority.
financial law firm.”“We have a very Preventing
is no guarantee conversations
that it is notabout
a copydiversity
of someone
recruitment was flawed because it assumes During lockdowns, firms
good understanding of how setthese
up virtual
discussions becomingelse’s worksiloedandistherefore
important. “We are making
worthless.
that, once a candidate completes a traineeship, recruitment
work and the campaigns,
timeframes,” broadening
he says.the range it a business
Many legal target rather than
questions theoutstanding
are still HR
“they experience equality of progression and of universities
Lawyers try they can target.
to give “Before,
their fintech [they]
customers function,”
regarding says Seema Bains,
decentralised insurance
finance, suchpartner
as cross-
professional opportunity”— which is not would say: wespace
breathing do wantfromtooverregulation,
go to beyond Russell but they and head of
border the global
provision diversity and
of settlement inclusion
services, says

around diversity
necessarily the case. Group
needuniversities but we don’t have the
to protect consumers. group
Lewis:at DWF.
“We stillReverse
needmentoring,
to come up with pairing
an
While hiring is important, it is only part of the budget,”
LegalAlonge
headachessays.connected
Now, therewith is no excuse. Bame junior lawyers
international systemwith
tosenior
decidepartners,
which lawhas
Financial services Legal seldom see is the army of legal pioneers working regulation. When Lisbon law firm Abreu
to make these services possible. Advogados was helping to set up Tokapi,
problem. The Bridge Group found that it takes
those from ethnic minority backgrounds two
She
aresuch
says a lackfinance
decentralised
less aslikely
of trustare
to share
the losses
canalready
mean employees
their ethnicity
incurred by traders
emerging,
data but
when
been “transformational,”
applies
to includes
to new-generation
get the dialogue
deciding going.”
shefintech
says. “It’s
where an asset is located —
helped
assets.” This
insights will help strike a Lawyers are having to wrestle with new Europe’s first fully regulated NFT marketplace, years longer to progress to partner than their building trust is crucial
cryptocurrency for employers
exchange Binance had to be
anable Herbert
something Smith Freehills hasrules
conflict-of-law introduced
often refer“race
to.
welcome balance between financial concepts against a setting of old legal
frameworks. They are operating in grey areas
a crucial issue was understanding whether an
NFT could be classed as a security — a tradeable
white peers. According to the Solicitors
Regulation Authority, the regulatory body in
to outage
identifyinproblems,
Retention
bring a lawsuit
May. Thesee
remains
trends
traders
a problem,
because
areand set targets.
struggling
though.has
the company A&O
to
no
leaders”
Given
services
inthe
each
function
could take
practice group
complexities
yearsintothe London
reach
and business
involved, he says, it
office, to help
international
overregulation and where regulators are still writing the rules. financial asset — or not. England and Wales, only 8 per cent of partners analysed its workforce
headquarters lastregistered
and is not year and found that
or regulated teams engage but
consensus, withthe
racial
factdiversity issuesto
that it appears andbe top
Inclusion Hiring
protection for consumers, practices “It is not youroftraditional
accusations empty legal service
rhetoric. But the where
pace of NFTs are often used to trade and collect at large firms are from a Bame background. black lawyers
in any leave almost two and a half years
jurisdiction. targets.
of theGary
agenda Hommel, partner and
for governments and race leader, is
regulators
you are applying templates created by someone digital art and digital sport memorabilia. Their Some firms are using fairer recruitment before white peers. Theisfirm
whatsays it will monitorif a meets regularly with peers to “share what works
are changing
writes Maija Palmer but retention ofelse,” change
firmssays
and commitment
Natalie
has intensified
to diversifying
Lewis,infinancial services
the past year,
law
and
according value can rise and fall and they are traded much processes for junior talent, such as contextual this
Another
gap and whose
company
question
commits to closing
servers
would
host an
happen
it. NFT artwork and keep
“both promising
Otherthe momentum
matters
and exciting”.
up”. Lorraine
being discussed Gibson,
are which kind

II
minority employees is a
t is boom time for new financial services.
markets
to Sarah
building
partner
Alonge,
it from
at diversity
Travers Smith.
scratch.”
“This [is]
and inclusion
She advised
adviser like stocks — even though many see them as a
Pay.UK,
hiring — where a candidate’s background is Distributing work fairly
suffers a catastrophic will help.
technical Alonge
failure, or goes business development
of exchanges director and
blockchain-based also acan
assets racebe
at the Law Society of England and Wales, which collectible, similar to of
improve retention a classic
juniorcar or rareso
solicitors wine.
that the that “ethnic diversity in the profession is in line opportunities to progress. Many left to go to considered — and CV-blind recruiting. says:
out“People
of business.stay longer if the work is better.” In leader, traded says:
on,“Weand couldn’t
how to tax achieve
them.what we want
Pioneering
problem, writes
The value of the Emma Jacobswhich
world’s cryptocurrencies runs the
represents UK’s money
200,000 transfer system, on
solicitors. If NFTs wereofseen
percentage newlyas aqualified
security,lawyers
Tokapifrom
would with UK society as a whole and has been smaller firms or in-house legal roles, where they Traditionally, large law firms have tried to some“Sometimes,
firms, work allocation
entrepreneurs managers — who
don’t really to lawyers
by leaving willit first
to our small
help D&I team.
regulators setIt’s
thenot
case law
passed a record $2.4tn this year, while the the design and launch
“The legal of a “request-to-pay”
profession is moving in the right have to have
ethnic been licensed
minorities as a financial
would match the cohort at improving over the years”. However, the thought the culture would be more inclusive. address the lack of black candidates by reaching assess several factors
understand the legal —implications,”
are also charged with
says Duarte leaving it onspend
and then the shoulders
the nextof blacktesting
decade colleagues.”
it.
volume of non-fungible
n the wake tokens murder
of George Floyd’s (NFTs) sold
last messaging service
direction,” that allows businesses and
she says. intermediary,
recruitment.in an extra complication for experience was uneven. Black, Asian and As one HR practitioner cited in the survey put for old solutions, says Waheed Aslam, asset taking
— ordiversity into account.
that, in creating an NFT, you are offering
in the
yearfirst
by ahalf reached
police officermore than
in the US,$2.5bn.
many law consumers to settle
Faced with bills quickly
pressure and flexibly.
from clients, and within, the start-up. The Bank
Allen & Overy has of Portugal
also releasedhas not ruled
targets: 15 per minority ethnic (Bame) solicitors were more it: “There is so much being put into attracting management and investment funds lead at Hogan
permanent Lovells requiresofthat
assurance the15 perbetween
link cent of athe
The sale ofin
firms anthe
NFTUKrepresenting a digital work
put out statements “There werediversity
to improve no precedents ,” she says.
and inclusion, some“It firms oncent
the issue but
ethnic Diogo Duarte,
minority partnersco-head of 35 per
by 2025; pretty comfortable
likely than white [with the]toconclusion
solicitors that,
be in smaller if
firms young
firsttalent into the
structured pipeline
product as aand then you
security tokenlook
on a Simmons & Simmons:
Next-generation they would
assets: an NFTtypically try pitching
blockchainteamreference
are drawnand from theethnic
digital asset. “You RESEARCH AND AWARD SUPPORTED BY
RESEARCH AND AWARD SUPPORTED BY
by artist Beeple forblack
supporting $69.3mandatethnic
Christie’s made
minority meant
havesitting downto
committed with the business
bolder and using
targets. Herbert banking and finance
cent ethnic minority at Abreu Advogados,
trainees. Linklatersmade
wants you don’t
and promise capital
in lower-paying gainsand
sectors andpractice
if you don’t
areas. at the curve
public and people
blockchain, are was
there dropping off. Itover
ambiguity is to representing
find a black Oxbridge undergraduate.
this digital collage by the minorities.
need to have “Toproper
progress as a lawyer,plans,
contingency you need to
the headlines in March.
employees, Paymenttocards
and pledging from
increase lotsSmith
of whiteboards and
Freehills has diagrams.”
said it will increase the thetocase that NFTs
increase were not
its number securities
of black as there
partners fivefold promise to manage
Solicitors the trading of
told researchers these
they felt they did just not acceptable.”
custody of the securities and regarding who However,
contemporary his firm takesBeeple
artist a different
soldapproach.
for getrecovery
good work andtodevelop
plans ensurerelationships,” says is
that even if a server
challenger
diversitybanks Monzo
in hiring, and Revolut
retention are now in
and promotion. Often,
number lawyers areminority
of ethnic trying to partners
ensure thatfrom 5.6 was no promise
globally that a buyer would profit and no
by 2027. markets,
not “fit”NFTs
City don’t
firmsqualify.”
and, if they did get through This
holdstheme was reinforced
the money in research
in case anything goes by the
wrong. “With 10,000
$69.3m Black Interns, a scheme offering
in March Susan Bright,
damaged global
the NFTmanaging
is not lost,”partner
he says.for
the wallets of 20m
In the past, customers.
this may have But what people
brought emerging
per centservices
to 10 perare notinthrottled
cent London by 2025, and management
Researchof forthe
thetrading of the NFTs:
Law Society “I feel
last year found Similarly, when
the door, they Société
were Générale
not offered issued
good work theor Bridge Group, Lucchesi,
Matthieu a consultancy lookingand
innovation at social
fintech paid training and work experience to black
Mundissima/Alamy diversity and inclusion
Copyright is another at problem.
the firm. Buying an

Case studies Case studies Moving the marketClifford

Social justice
Lawyers are making a positive
impact, from tackling domestic
violence to advising asylum seekers.
Winner
Uría Menéndez
Over nine years, the firm led the
wrongful-death claim for Samba
Martine, an immigrant held in a
Spanish detention facility and
denied adequate medical attention
despite being HIV-positive. It marks
the first time the Spanish
government has admitted
responsibility for a death in
immigration detention. The outcome
of this case will oblige the state to
improve medical services and
protocols of immigration facilities.
Cobalt
The firm worked with campaign
groups such as the Association of
LGBT and Their Friends Mozaika on
two cases in Latvia, challenging
discrimination against same-sex
couples. The Latvian constitutional
court said same-sex couples are
entitled to register for marriage and
their families should enjoy the same
protections as heterosexual couples.
These are the first cases where the
Latvian constitutional court ruled in
favour of same-sex marriages.
Dentons
To support Poland’s LGBT+
forward
Chance and Macfarlanes
The two firms provided lawyers and
Lawyers have been turning a period of
trainees to work alongside students
providing pro bono advice to asylum Spac deals to happen faster, with more access to a tax incentive bill. The lawyers
economic uncertainty into an opportunity seekers for the University of flexibility. It was the largest public offering secured an arrangement in which any
for progress. London’s Refugee Law Clinic. So far, on the Paris market in 2020. company can receive a tax break for
the clinic, which was set up in 2020, investing money into funds financing
Winner has received 34 referrals, with the Bird & Bird research and development or new start-
Travers Smith firms contributing 50 volunteers. Oxygy, the law firm’s consulting arm, ups — enabling them to potentially
To prepare for Brexit, the firm helped worked with construction and property recoup their losses, or even make a profit.
lawyers at the securities depository Deighton Pierce Glynn and company Lendlease to support the The firm worked with BlueCrow to set up
Euroclear design a system ensuring a DLA Piper creation of Federated Innovation, an the first fund of this kind and lobbied the
backstop for the euro settlement of The firms started a project to ecosystem in Milan designed to foster new government to secure legal approval.
securities. With more than £1tn worth of improve access to justice for asylum ideas. The initiative gathered 34
securities settled using Euroclear’s Crest seekers and refugees in the UK. companies to work on projects to help the Abreu Advogados
system daily, putting in place facilities to Lawyers wrote letters to ask for city recover from the pandemic and The firm advised a group of entrepreneurs
prevent any disruption was essential. their client’s transfer away from the become more environmentally on the launch of a non-fungible token
community, the firm offers pro-bono attention to support Lawyers
the case.secured
In approval
Day byfrom Day theblog,Bank
by interpreting much-criticised Napier barracks, a sustainable. The law firm and Oxygy (NFT) marketplace called Tokapi, helping
support to campaign groups, of England and regulators,
April, the court’s advocate-general agreed
legislation for parents and teachers former military facility, within 24 worked on the governance framework and the business overcome complications in
running discussions at events for said Bulgaria should contractual
consider agreements with Crest
of dyslexic children. Lawyers hours of arrival. The project intellectual property policies and devised registering with Portugal’s central bank
clients, and founding a group at the accepting family tiesmembers,
for same-sexand enabled the introduction
answered of and gave
legal questions increases the number of asylum Jason Alden/Bloomberg an innovation process to give structure to because these virtual assets are held on
Warsaw bar to create a safe the technical model advice
couples and their children. neededtototackleaccessdaily challenges
financial products involving
seekers who candigital assets. and
be assisted the projects. blockchain. The lawyers addressed
environment for LGBT+ lawyers. central bank money.faced by families. The blog The capital markets
includes allows team at law
specialist firm lawyers
public Gide to questions on VAT rules in Europe,
Olga Ziegler, head of Dentons’ Hogan Lovells a direct link to lawyers to answerLoyrette Nouel and on
focus members
strategicof litigation.
Gide 255, Hogan Lovells advising the entrepreneurs on adapting
LGBT+ affinity group in Poland, The firm updated itsCadwalader,
staff domestic Wickersham
further&questions
Taft posed bythe firm’s client innovation team, advised
readers. Lawyers in the firm’s Moscow office their business model to make the tax
formed initiatives to raise awareness Lawyers
abuse policy to include worked with the bank Investec to
emergency Forge on the legal framework for Europe’s
Sorainen assisted Netflix in launching a Russian structure simpler.
of the community’s rights. Partner launch and
funds and accommodation, a €1bn secured note programme
Ashurst first issuance Toof asupport
structured debt product
Covid-19 recovery version of its streaming service, setting up
Igor Ostrowski manages the supported campaigner with a UK insurer. ByAs
Sharon agreeing
part of itswith the
programme on the public blockchain
opposing projects in the platform,
BalticsTezos,
and Belarus, a joint venture with Russian media Covington & Burling
Equaversity Foundation, a rating agency Moody’s
Livermore and the Employers to give
modern the notes
slavery, a committed
the firm in April 2021. the firm provided pro-bono advice. company National Media Group to comply The digital health team combines experts
fundraising campaign for related Initiative on Domesticcapital
Abuserating,
on lawyers to enabled
a 10-yearinvesting
grant to aid Anti- Lawyers assisted on projects with laws preventing majority foreign in regulation, data and privacy, intellectual
initiatives in Poland. insurers to
creating a template domestic access returns
abuse SlaveryofInternational,
around 1.5-2 the campaign
White & Case including: an app called Act on Crisis shareholders of media companies, and property, government affairs and
policy. Working with per centHestia,
charity — higher than
group.theyIt could
is goingaccess After securingthat
beyond advising the provides
first special purpose
mental health advice negotiating regulations. This creates competition law to advise digital
Freshfields Bruckhaus Deringer the firm developed an before.
app forBy using an Irish
clientsspecial purpose by actively
on compliance acquisition company
and virtual(Spac) in France
support in a
groups; opportunities for Russian filmmakers and healthcare clients. One such client is
Partnering with ILGA-Europe, a vehicle,
victims to access support andinsurers canmapping
access this credit and reviewing
suppliers 2016, last yearrespirator
the firm advised
that usesa ultraviolet light gives local audiences access to Netlix’s clinical artificial intelligence company
campaigning umbrella organisation, exposure
contributed to the UK’s Domesticwithout compromising
contracts. on the syndicate of banks
to kill on themolecules;
virus public offering
and support foreign content with Russian subtitles. Sensyne Health, which acts as an interface
the lawyers argued for the matching
Abuse Bill, which gained royal adjustment Archana
they are Kotecha,
required tofounderofof2MX Organic.
social forUnlike the first
Lithuania’s FrenchPublic
National Netflix estimates it will have more than 1m between doctors and patients on the one
recognition of ties between LGBT+ demonstrate
assent in April. Lawyers also helpedto regulators.
enterprise The Remedy Project, Spac, which required shareholder
Health Centre, on developing an app Russian subscribers by the end of 2021. hand, and pharmaceutical companies on
parents and their children in secure more than £3m in which supports vulnerable approval,workers, this to replicates the model used in
track symptoms. Commended: Natalia Gulyaeva. the other, analysing data to recommend
Bulgaria before the European Court Gide Loyrette
compensation for victims of abuse. Nouelwas awarded a grant by thethe US that requires
firm. approval
Researched, from the
compiled and ranked where investment should be made.
of Justice. Freshfields provided pro- Société Générale Forge is a new
Ashurst alsoentity
createdsetan online
board but notby shareholders,
RSGi. ‘Winner’ andindicates
gives the Vieira de Almeida Researched, compiled and ranked by RSGi.
bono work, helped develop Abreu Advogados up by the French investment resource to bank to staff about
inform investors the right to redeem
organisation wontheir
an FT shares
Innovative The firm helped the investment fund ‘Winner’ indicates the organisation won an
arguments, and generated media The firm contributedmanage investing and
to the Dyslexia issuance
modern of
slavery. after an acquisition
Lawyers is made. This allows
2021 award BlueCrow give companies in Portugal FT Innovative Lawyers 2021 award
16 | FTReports
Fix law firm
culture to keep
people of colour
T
o address the lack
OPINION of ethnic diversity
in the legal
Natalie A industry, it is not
Carter enough to focus
only on recruitment. We also
need to ensure that ethnic
minority lawyers are being
retained or promoted by their
firms. Lack of access is one
part of problem, but the bigger
challenge is retention. We
need to be honest about why
the culture in many firms is
not inclusive.
FT Innovative Lawyers Europe
I am a proud member of the
first corporate law scheme run
by the non-profit body
Sponsors for Educational
Opportunity London. It was
instrumental in helping me
obtain a training contract in
my second year of university.
When I joined SEO London
in 2008, I made a commitment
to help other ethnic minority
students gain access to the
legal industry. I have designed
and participated in many
programmes focused on
Schemes should involve more associates from diverse backgrounds, says Natalie A Carter
providing information,
mentorship and application
support for people of colour.
But I have become
uncomfortable at encouraging
people of colour to enter a
professional environment
that, despite actively
recruiting these candidates, is
not doing enough to help them
build longstanding careers.
In the UK Law Society’s
2020 Race for Inclusion
report, ethnic minority
lawyers reported lower levels
of workplace wellbeing
compared with their white
counterparts, which has led to
many taking a break from the
profession.
After seeing several of my
black colleagues leave the law,
it became clear to me that
focusing on graduate
recruitment alone to improve
diversity in law firms was
equivalent to filling up a
bucket with holes in it.
A law firm increasing its
intake of “diverse” trainees is
not evidence that a law firm is
inclusive. If anything, these
schemes are simply sending
more ethnic minority trainees
into an unwelcoming culture.
As a black woman who has
practised in more than one
firm in the City of London, I
see a clear disconnect between
management and teams about
the importance of diversity.
There is often no clear
guidance on what changes
firms need to make at a
department level.
Interest in programmes
such as reverse mentoring and
unconscious bias training, and
support for employee-led
networks, seems to wane once
we get down to a team level.
It is extremely difficult for
individuals to raise concerns
about microaggressions,
tokenism or favouritism,
FINANCIAL TIMES Friday 15 October 2021
particularly in situations
where there are no other
senior lawyers — whom they
trust — to step in to help.
Raising a discrimination
concern can be career-limiting
or worse, career-ending —
especially if concerns involve a
high-performing fee earner.
Law firms have a
responsibility to establish safe,
confidential processes to allow
instances of discrimination to
be handled without fear of
isolation or retaliation. And
department leaders should be
held to account if ethnic
minority lawyers in their
teams keep leaving to go in-
house, or to other firms, or into
other industries. Firms must
do more to understand the
experiences of ethnic minority
lawyers and to recognise the
barriers holding them back.
The Law Society report
states that, between 2015 and
2020, some 42 per cent of
I have seen black
applicants not
progressed because
they were not
deemed a ‘good fit’
white males who became
partners stayed in the same
firm, but only 20 per cent of
ethnic minority males were
promoted internally.
I have served on many
hiring panels in my career and
have seen black applicants not
progressed because they were
not deemed a “good fit”, even
with the right qualifications,
while some white male
applicants, similarly qualified,
made it through as they were
seen as a “good fit”.
In an environment where
your progression relies on the
allocation of good work and
internal relationships, it is
crucial that law firms educate
their workforces about racial
discrimination and
microaggressions and ensure
work is allocated fairly.
While participating in
diversity initiatives and paying
consultants to facilitate them
can be helpful, involving
associates from diverse
backgrounds in the conception
of these schemes would make
the exercise more effective.
The success of these initiatives
should be regularly assessed.
In 2014, the Black Solicitors
Network set up Creating
Pathways, a programme
providing soft skill workshops
and cross-firm mentoring
between junior and senior
ethnic minority lawyers. The
support I received from other
senior black lawyers through
this scheme is one of the main
reasons I was able to continue
practising when I lacked
support in the team I was in.
The programme’s success is
down to the fact that it is run
by senior black lawyers.
However, schemes such as this
teach us only how to cope; law
firms should ask themselves
why they are still necessary.
As clients grow more
specific in demands for diverse
counsel, this conversation will
continue. Firms must reflect
on the culture of their
departments and design
strategies to support and
retain ethnic minority
lawyers. Success will depend
on tracking progress and
holding leaders to account.
The writer is a senior associate at
an international law firm. These
are personal views based on her
experiences and those of peers.
FINANCIAL TIMES Friday 15 October 2021
Case studies Diversity and inclusion
Pressure to have more diverse
representation is driving change.
Winner
Browne Jacobson
The firm has introduced
initiatives to help
improve social mobility
in the legal profession.
Most notably, it
removed academic
grade requirements for
training contracts and for
vacation schemes in 2016, long
before other UK firms undertook
similar moves. The change allowed
the firm to identify “exceptional
talent”, with about a third of training
contract offers going to candidates
who would have previously been
ineligible.
The firm’s junior ranks are evenly
split between elite university Russell
Group and non-Russell Group
graduates, compared with a legal
industry average of 84 per cent
Russell Group. The change also
FT Innovative Lawyers Europe
increased ethnic minority
representation in the firm’s intake.
Addleshaw Goddard
Addleshaw Goddard was the
first law firm to partner
with the BBC on its
50:50 equality project
aimed at featuring
more female voices in
the media. The
initiative involved
counting how many men
and women from the firm were
put forward for media opportunities.
Since reporting 57 per cent male and
42 per cent female voices in late
2020, the firm has improved the
statistics by providing media
training and putting more women to
the fore in campaigns and pitches.
Herbert Smith Freehills
The firm launched a global strategy
called 10 Actions for Change to
improve racial and ethnic diversity.
These actions include improving
recruitment, retention, promotion
and representation of people from
diverse backgrounds across the firm.
The strategy extends to scrutiny of
the firm’s supply chain and
supporting minority ethnic-owned
businesses. All employee processes
involve ethnicity data to try to
detect and address biases.
Simmons & Simmons
The firm provided 150 hours of
legal advice to help hedge fund
Capstone Investment Advisors in
the launch of the 10,000 Black
Interns programme in the UK,
involving more than 700
organisations that will offer paid
work experience to a total of 10,000
black interns over five years. The
project builds on the 100 Black
Interns project for investment
management firms. The scheme
addresses underrepresentation of
black employees, which can be
hidden when the focus is on all non-
white groups, while also ensuring
the strategy does not fall foul of
anti-discrimination legislation.
Allen & Overy
The magic circle firm was the first
law firm to publish an ethnicity “stay
gap” report, which shows the
difference in retention for Bame
(black, Asian and minority ethnic)
employees compared with white
colleagues. The firm found Asian
and minority ethnic colleagues leave
the firm an average seven months
earlier than white
counterparts, with black
colleagues leaving two
years and five months
earlier. The firm will
report the stay gap
annually.
DWF
Seema Bains, head of diversity
and inclusion at DWF, has ensured
female representation on every
client-facing team and is working to
improve other areas of inclusion.
FTReports | 17
The firm offered 12 paid internships
via its ethnic minority access
scheme and published its first
ethnicity pay gap report. It was one
of the first firms accredited by the
UK government-backed “disability
confidence” scheme, which tackles
barriers to employment.
Hogan Lovells
As well as internal initiatives, the
firm has taken on a consulting role
advising several clients on diversity,
equity, and inclusion
strategies alongside the
firm’s employment,
investigations and
privacy practice areas.
In Europe, the firm has
introduced billable
hours credits for time
spent on diversity, equity
and inclusion projects.
Researched, compiled and ranked
by RSGi. ‘Winner’ indicates the
organisation won an FT Innovative
Lawyers 2021 award
18 | FTReports FINANCIAL TIMES Friday 15 October 2021

FT Innovative Lawyers Europe

On a mission for affordable cases

Disputes Individuals are
combining claims to access
the courts, writes Jane Croft

A
s soon as authorities around the
world forced millions of small
businesses to shut down amid the
Covid-19 pandemic, an avalanche
of litigation was likely to follow.
Company bosses — from hair salons and
dentists to builders — all turned to their
insurers to cover the impact on their
operations, and help them stay afloat.
But would the insurers pay out? And would
the potential number of lawsuits needed to
determine liability become overwhelming?
In the UK, the Financial Conduct Authority,
the financial regulator, and eight insurers,
quickly took steps to bring a landmark court
case in which they asked judges to determine
whether payouts on business interruption
policies were due.
The case and its eventual outcome have been
closely watched around the world, wherever
insurers and small companies are locked in
stand-offs over the same issue.
Mrs Justice Sara Cockerill, the judge in charge
of London’s commercial court, recently told a
conference, the 2021 Dispute Resolution
Forum, that the lawsuit was “effectively an
international lead case” and a “shining
example” of procedural effectiveness. At least

‘Many small enterprises could

not afford to spend thousands
of pounds on litigation’

one other jurisdiction was staying its own cases Hairy moments: businesses wanted to
pending the outcome of the FCA case, she said. claim on their insurance to help them
The lawsuit was the first case brought under
the Financial Markets Test Case Scheme, which
Mastercard faces fee claims from 46m Britons weather the effects of the pandemic
Ian Forsyth/Getty Images

allows urgent judicial interpretations of key

questions affecting financial markets. The case
went all the way to the UK’s Supreme Court,
which ruled in January 2021 that, in most cases,
insurers must pay up.
“I am sure it has saved a lot of litigation,” says
Paul Lewis, a London-based partner at law firm
Herbert Smith Freehills, who advised the FCA
in the case. “Many small enterprises affected by
the pandemic might be the ones who could not
afford to spend tens of thousands of pounds on
litigation,” he points out.
For law firms, the work involved a
compressed timetable and weekend working.
Lewis and his team were instructed by the FCA
in May and the lawsuit was issued in June. The
FCA estimated that 700 types of policy held by
370,000 policyholders across 60 insurers could
be affected by the case.
The High Court considered the case in July
2020 with an appeal by the losing insurance
companies heard by the Supreme Court in
November and a final ruling handed down in
January 2021. The UK’s highest court found that
Recent UK legislation, the Consumer Rights
Act 2015, allows large groups of consumers
to sue in class-action lawsuits for unlawful
anti-competitive behaviour. In a mass claim,
consumers are automatically enrolled,
unless they opt out, which is an
important shift from previous
legislation that required
consumers to opt in.
The first big test of the
legislation is heading to the
English courts in the form of
a class action — Britain’s
biggest — against Mastercard,
brought on behalf of more than
46m British consumers by Walter
Merricks, a former financial ombudsman.
Law firm Hausfeld intervened on behalf of
the non-profit Consumers’ Association in
the lawsuit, which recently had the go-
ahead to proceed to trial.
The case against Mastercard stems from a
2007 European Commission ruling that
cross-border charges on the use of
Mastercard debit and credit cards — known
as interchange fees — were in breach of
competition law.
Merricks claims that
Mastercard infringed EU
competition law by imposing
such fees for the use of debit
and credit cards on retailers.
The costs of the fees were
passed on to consumers who
paid higher prices for their
purchases. Mastercard is
contesting the claim.
If Merricks wins, each consumer is likely to
receive no more than a few hundred pounds.
However, without collective legal actions,
those cardholders would have no hope at all
of any redress.
most types of insurance policies held by the
small firms should pay compensation. So far,
around £1bn has been paid out by insurers.
Lewis says the speed of the lawsuit and the
legal questions were novel.The lawyers also had
to select 21 sample insurance policy wordings
and the FCA had to argue that previous case law
on the topic had been wrongly decided.
Business interruption insurance would
normally kick in where there was damage to
property such as a flood, Lewis explains.
However, “in this case, it was all about assessing
business interruption cover absent property
damage,” he notes. “I’ve been doing this for
nearly 30 years and it was the first time I had
cause to look at these extensions to cover. And,
of course, there was no real precedent for mass
business shutdowns.” That the case was heard
at all is significant, because test cases so rarely
take place in the UK, he adds.
Equally remarkably, he says: “I never met our
counsel team — we all worked remotely and did
Continued on page 20
20 | FTReports
On a mission
for affordable
cases
Continued from page 18
our case management hearings and trials
remotely, which was completely different.”
The FCA case shows that UK government
regulators are prepared to intervene with a test
case if it will help determine an issue affecting
thousands of businesses that otherwise could
not afford access to justice. The cost of bringing
litigation is prohibitive for small companies,
especially if they can only win relatively low
levels of compensation.
But this is starting to change thanks to greater
use of collective legal actions that help
consumers and small businesses bring court
cases. While individual claims might be small,
their numbers are sizeable when combined.
Case studies Digital law
Digitisation is being integrated into the
practice of law.
Winner
Allen & Overy
The firm’s Markets Innovation Group
developed an integrated service to help
financial institutions move away from using
the London Interbank Offered Rate as the
interest rate benchmark for mortgages, loans
and contracts. This requires institutions to
review and amend thousands of contracts. The
service combines technology, legal advice and
project management to help institutions
manage this task. It draws together lawyers
from across jurisdictions and practice areas
including lending, trade finance and
derivatives, as well as consultants, tech
developers and project managers. With a team
of almost 200 professionals involved in the
Libor transition service, the firm is able to
provide solutions to several of the top financial
institutions globally.
DLA Piper
With the help of US ediscovery company
Reveal, the firm developed an artificial
intelligence tool for identifying cartel
behaviour in big businesses. The service,
Aiscension, can identify cartel-related
activity within a business’s data
and communications in real time.
The firm spent four years
training the AI tool. In one case,
in a set of 40,000 documents,
Aiscension identified proof of a
cartel within 10 minutes.
Addleshaw Goddard
The firm developed an online platform using
Thomson Reuters HighQ software to manage
information and processes in the due diligence
phase of a corporate transaction. All due
FT Innovative Lawyers Europe
Fined for collusion, European truckmakers face a claim for compensation — Gabriel Kuchta/Getty Images
Cases brought under the 2015 Consumer
Rights Act representing multiple claimants are
increasingly being financed by the litigation
funding market, when funders back lawsuits in
return for a slice of any compensation.
Law firms such as Hausfeld — which has
offices in the US, Germany, Netherlands, UK,
France and Sweden — are in the vanguard of
diligence across the firm is now managed on
this central platform. It has been used on 50
deals since December 2020 and is now
mandated for use on all corporate
transactions.
Kennedys
The firm’s technology
company, Kennedys IQ, has
continued to develop its Portal
Manager, which helps insurance
claims managers process and
organise claims through a dashboard.
The firm has built in AI and other tech to mine
data sources so that claims handlers can
quickly see the implications of claims, spot
fraud, and assess settlement costs. One client
saved an estimated £1m in fees.
Cuatrecasas
The firm was asked by German law firm Gleiss
Lutz to manage the Spanish aspects of a
Europe-wide class action dispute. Because
Spain’s legal system does not allow for class
actions, Cuatrecasas needed to find a way to
manage hundreds of individual claims. It used
automation, legal project management
approaches, a dashboard to oversee all of the
work, and a knowledge management tool
to cut repetition of work. The firm
estimates a time saving of 30 per
cent per case, with an overall 20
per cent cost saving for clients.
Pinsent Masons
In the past 12 months, the firm’s
risk advisory services team, which
helps clients manage risk exposure
across a variety of areas, has launched several
digital tools to help businesses manage
intellectual property, cyber security and other
risks. Alteria, a brand management and
enforcement platform, gives clients a
those bringing such cases and finding new ways
for clients to access justice.
Hausfeld is currently engaged in truck cartel
litigation, which is progressing through the
courts in Germany, the Netherlands and the
UK. The firm’s teams have brought claims
stemming from a dispute totalling €5bn and
covering 500,000 trucks and 10,000 affected
dashboard showing IP renewals and
immediate opportunities for cost savings. The
platform also allows clients to deal with
infringements faster. In its first six months,
the tool generated more than £450,000
worth of instructions.
Shoosmiths
Shoosmiths’ Cia is an AI contract
review tool that focuses on the
negotiation of commercial contracts.
Clients send contracts they want
reviewing to the firm via an email address,
which — once processed by the AI tool —
returns them with suggested amendments.
The AI is supported by ThoughtRiver, a
contract review software company, with the
firm providing managed services so clients
need not install software. The service saves up
to five hours review time per contract
and up to 80 per cent on external
legal fees.
Simmons & Simmons
The firm launched Rocketeer,
an AI-powered tool that
reviews IP matters and predicts
their outcome in the EU IP Office,
where trademark conflicts are
decided. Drawing on a history of 10,000
decisions, the tool can predict the outcome of
a conflict between two trademarks with 92 per
cent accuracy and saves a quarter of the time
usually spent on reviewing cases.
Womble Bond Dickinson
To cope with data subject access requests —
written requests made by individuals to see
the information an organisation holds about
them — the firm has repurposed ediscovery
techniques from commercial litigation. Its WBD
Clarity platform uses Everlaw’s ediscovery
software to streamline document review and
FINANCIAL TIMES Friday 15 October 2021
small companies. The actions, brought as
individual and group claims, are supported by
the transport associations of eight European
countries.
The European Commission determined in
July 2016 that five leading European
truckmakers had co-ordinated the pricing of
trucks from 1997 to 2011 and colluded on timing
the introduction of emission technologies.
The Hausfeld lawsuit means a business that
bought trucks affected by the cartel can claim
compensation for any loss suffered from
resulting higher prices, plus interest. The
lawsuits were filed after a commission
settlement decision against Daimler, Volvo,
MAN, Iveco and DAF in which it found the
companies co-ordinated the pricing of trucks
between 1997 and 2011, leading to a €3.5bn fine.
The aim is to use and rely on the EC’s findings
to bring this follow-on civil lawsuit for
compensation. “One of the key arguments for
bringing cases like this is that it helps facilitate
access to justice,” says Lucy Rigby, partner at
Hausfeld. “Claims are often expensive, time-
consuming and costly to bring and many of the
truck firms are small businesses or family firms,
which might not be able to contemplate
litigation in many cases.”
redaction. In one project, the software cut the
documents needing manual review from
12,250 to under 1,600, with an estimated time
saving of 220 hours. Commended: Amy Prime.
DLA Piper
Within 12 days of the Schrems II judgment — a
European Court of Justice ruling that left
European companies in limbo over the privacy
of EU citizens in data transfers to the US —
the firm launched a risk assessment tool called
Transfer. It helps clients assess whether data
transfers outside the EU are compliant with
the judgment. In order to proceed with a data
transfer, companies must justify their decision.
The Transfer tool automatically generates a
report when a data transfer request is made,
which meets the criteria for justification.
NautaDutilh
The firm has developed a data transfer
impact assessment tool, to assess
whether data transfers are
compliant with Schrems II, which
rendered the agreement previously
used to transfer data between the
EU and US invalid. The tool allows
clients to assess the risk of a transfer
and provides steps to mitigate that risk.
SSW Pragmatic Solutions
With the help of IBM’s Global Technology
Services division, the Polish law firm launched
Aquila, an AI tool for reviewing documents,
such as leases, at volume. The partnership
with IBM gives the firm flexibility to deploy the
software either on the cloud or an on-site
server — important for highly regulated
sectors in which there are particular
sensitivities around handling data.
Researched, compiled and ranked by RSGi.
‘Winner’ indicates the organisation won an FT
Innovative Lawyers 2021 award
22 | FTReports
Case studies Disputes
Innovative litigators cut through the
complexity to find what’s really at stake.
Winner
Herbert Smith Freehills
To avoid years of litigation over pandemic
business interruption insurance claims, the
UK’s Financial Conduct Authority brought a
test case. It was the first using the
Financial Markets Test Case
Scheme, which is designed to
secure expedited judicial
interpretations on common
disputes arising out of Covid.
The FCA was advised by HSF,
whose lawyers negotiated
agreements with eight insurers
to participate and argued the
case in the High Court and Supreme
Court during 2020. The final ruling came in
January 2021 and nearly £1bn had been paid
out to businesses by the end of August,
according to the FCA. The firm also
developed an automated tool for the FCA
website to help businesses assess what
forms of business interruption caused by
Covid they might be able to claim for.
Garrigues
On behalf of a major corporation, the firm
successfully argued that a royal decree law
approved by the Spanish government in
2016 was unconstitutional. The law
introduced a minimum tax
prepayment for large companies
that was much higher than the
actual tax they were required
to pay at the end of the
financial year, with the
difference refunded afterwards.
So far, hundreds of millions of
euros have been paid in
compensation to companies for
prepayments made in 2016 and 2017 when
tax rates were higher.
Uría Menéndez
The firm successfully prosecuted a Spain-
based online developer who wrote software
that could be used to create bots that fake
engagement levels on Instagram. The
lawyers deployed arguments of infringed
intellectual property and breach of fair
competition in the Spanish commercial court.
This is the first such case that Instagram
owner Facebook has prosecuted
through courts rather than
managing within its user terms of
service. The firm devised a
solution that would work in the
Spanish courts while allowing
Facebook to pursue its strategy
of suing for breach of contract.
The case sent a message to
Facebook users that its terms of
service can be legally enforced.
Hausfeld
Litigators are representing consumer rights
organisations in a number of collective action
cases, which are made more complex where
there is no regulatory decision underpinning
FT Innovative Lawyers Europe
the claim. In this case, the firm is using group
litigation orders and “opt out” claims where
cases are brought on behalf of consumers
and the compensation is then advertised
afterwards. It has had the first of these cases
formally certified, concerning Mastercard
interchange fees that are charged to retailers
for card use. This means it can now go before
a tribunal.
Morgan Lewis
The firm secured a UK Supreme
Court ruling in favour of
J Sainsbury, the supermarket
retailer, against Visa and
Mastercard. The ruling showed
the credit card companies
violated competition law by
charging retailers excessive fees that
are passed on to consumers, each time a
customer uses one of their cards, without
retailers having adequate opportunity to
negotiate the fees. The case tested several
legal questions, such as the extent to which
the UK Supreme Court is bound by the Court
of Justice of the European Union’s decisions.
The judgment confirms the 2018 Court of
Appeal ruling, where Morgan Lewis lawyers
also led the case, and will enable retailers to
claim damages as well as opening the door
to collective action claims.
Dechert
Twenty years after a judgment in
Singapore in which military
supplier Strategic
Technologies won damages
from the firm’s client, the
Taiwanese Ministry of
National Defence, the
judgment was recognised in the
Cayman Islands and then
registered in the English courts. The
lawyers overturned the English court’s
“judgment on a judgment” in this case,
arguing against the use of the 1920
Administration of Justice Act. The precedent
prevents “judgment laundering”, where
judgments are made enforceable by the
English court simply by sending them
through a Commonwealth jurisdiction.
Freshfields Bruckhaus Deringer
The firm renegotiated US-based payments
company Wex’s acquisition of two travel
payments companies, eNett and
Optal, amid the disruption of the
pandemic. The lawyers argued
for the material adverse
effect to these companies
given that they were in the
travel industry as well as the
payments industry. The
notion of material adverse
effect is common in US-drafted
contracts but not commonly argued
in English courts. The targets were
eventually acquired for $575m, roughly a
third of the original amount.
Researched, compiled and ranked by RSGi.
‘Winner’ indicates the organisation won an
FT Innovative Lawyers 2021 award
Case studies Enabling resilient business
Structuring deals that foster sustainable
growth.
Winner
Slaughter and May
In June, UK insurance group RSA was bought
by a consortium comprising Canadian
insurance group Intact and Denmark’s Tryg.
Slaughter and May created a framework
baked into the court process that would
simultaneously secure the takeover and
agree to splitting the company between the
two new owners, with one portion remaining
shared. The firm negotiated with regulators
in several jurisdictions on antitrust concerns,
designed a structure that protected the
company’s pensions benefit scheme, and
secured certain fund provisions despite
myriad funding sources.
Pinsent Masons
In order to help the UK’s largest workplace
pensions provider, Nest, digitise its pensions
scheme, the firm advised the trust on
procuring technology company Atos to run
its IT services. The law firm acted as a
professional services consultancy, providing
legal advice on the contract but also
considering cultural values as part of the
procurement process — such as a
commitment to diversity and inclusion.
Commercial professionals prepared the
business case and onboarding strategy for
HM Treasury.
Paul, Weiss, Rifkind, Wharton & Garrison
The firm advised private equity firm KKR on
the carve-out and spin-off of Telecom Italia’s
last mile assets — the part of the network
that delivers telecoms services to retail end-
users. These assets created a new company,
FiberCop, into which KKR invested €1.8bn. As
well as Telecom Italia, Italy’s largest
telecommunications company, the lawyers
had to negotiate with Fastweb, a Swiss
company that had an existing contract with
Telecom Italia to provide fibre connections.
Ropes & Gray
The firm advised Liberty Global, a
telecommunications company that owns
shares in Virgin Media, O2 and others, on the
joint venture combination of O2 and Virgin
FINANCIAL TIMES Friday 15 October 2021
FT Montage
Media in 2020. Lawyers had to design
bespoke financing structures to allow Liberty
Global to keep the operating businesses
separate, with the ability to combine them in
the future.
Cuatrecasas
Lawyers assisted El Corte Inglés, one of
Europe’s largest department store groups, in
creating a business-to-business platform to
streamline payment conditions for
businesses and suppliers. The firm led on the
design and execution of the platform’s
structure, which allows for advanced
payment options to be agreed to at the push
of a button, with terms and conditions built
in. The platform allows suppliers to have
invoices paid early for an agreed discounted
rate, enabling El Corte Inglés to maximise the
profitability of its excess cash.
Kirkland & Ellis
The firm advised a bidding consortium led by
private equity firms Advent International,
Cinven and the RAG Foundation, an
investment vehicle, on acquiring the elevator
division of Thyssenkrupp, the German steel
and materials group. Despite a highly
competitive bidding process, Cinven and
Advent were successful. This was in large
part because of drafting by the lawyers that
allowed Thyssenkrupp to invest and retain a
stake in the elevator business and meet
other commercial objectives. The deal was
among Europe’s biggest buyouts in 2020 and
gave Thyssenkrupp a €17.2bn cash injection.
Pedersoli Studio Legale
The firm represented Intesa Sanpaolo, an
Italian banking group, in its hostile takeover
of UBI Banca, creating a combined banking
group with more than €1.1tn in customer
financial assets. The firm advised on several
aspects of the deal including selling some
branches to BPER Banca, another Italian
bank, to address antitrust issues. Hostile
takeovers are uncommon in Italy and the
deal establishes Intesa Sanpaolo as one of
the biggest banks in the country and the
eurozone.
Researched, compiled and ranked by RSGi.
‘Winner’ indicates the organisation won an
FT Innovative Lawyers 2021 award
FINANCIAL TIMES Friday 15 October 2021
Case studies Rescue, restructuring and recovery
Lawyers found creative mechanisms
to unlock capital for clients in crisis.
Winner
Sidley Austin
Travelex, the world’s largest
currency exchange, went through a
restructuring at the height of the
pandemic in August 2020, a few
months after it suffered a cyber
security breach. Because of this
timing and legislative and policy
measures being introduced, the law
firm developed a structure that split
the group into segments. Some
parts moved to the new company
immediately, while others went over
in time or were subject to options.
This technique gave Travelex the
flexibility to rebuild the business.
Ashurst
The firm provided legal support to
the state-owned British Business
FT Innovative Lawyers Europe
Bank and to the UK government on
the creation of the Future Fund — a
government scheme run through
the bank that provided convertible
loans to early-stage businesses
affected by the pandemic. Lawyers
helped set up the scheme, launching
it within six weeks. The fund helped
almost 1,200 companies.
Latham & Watkins
The firm advised New Look, a UK
fashion retailer, on its second
financial and operational
restructuring last year. It obtained
an injunction when one landlord
instigated a winding-up petition for
unpaid rent during the pandemic,
arguing that the terms of the
Corporate Insolvency and
Governance Bill 2020 should be
applied early. The court rejected the
argument by landlords that a
company voluntary arrangement
(CVA) between a company and its
creditors could not treat groups of
creditors differently. This reaffirmed
the flexibility of CVAs for
restructuring unsecured liabilities.
BonelliErede
The firm assisted Camera Nazionale
della Moda Italiana, a non-profit that
promotes the Italian fashion
industry, in its efforts to make Milan
Fashion Week a digital event.
Lawyers helped to procure tech
services and advised on the creation
of a digital platform to broadcast
shows and sell products. They
negotiated deals with media outlets
globally for streaming rights and
made arrangements to host
ecommerce on the platform.
Fieldfisher
The firm helped R3, the trade group
that represents restructuring and
FTReports | 23
insolvency professionals in the UK,
to design forms that can be used for
arranging a CVA. This makes
restructuring easier and cheaper for
smaller businesses, which are most
likely to be affected by the
pandemic.
Gibson, Dunn & Crutcher
The firm advised EuropaCorp, a
French film company, and 10 of its
subsidiaries, including EuropaCorp
Films USA, on its restructuring. It is
the first time that a US entity
domiciled and operating in the US
was able to open safeguard
proceedings in France, and the first
time that US courts have recognised
and enforced French safeguard
proceedings on US territory.
Researched, compiled and ranked
by RSGi. ‘Winner’ indicates that the
organisation won an FT Innovative
Lawyers 2021 award
2416| FTReports
| FTReports
Fix lawpractitioners
Legal firm who
culture
look to keep
to the future
people of colour
W
hen it comes to innovation, an outsider’s perspective can new niches created in unexplored practice areas.
be key, writes Mary Ormerod. Some of the lawyers
profiled here for their expertise as legal practitioners
arrived in their current roles from an unusual direction;
T
some have experienced being the only woman or person
of colour in the room.
AllOPINION
are recognised for having helped clients by thinking
future as well as the challenges of the present. Theinresult
Natalie A
Carter
only on recruitment. We also
need to ensure that ethnic
minority lawyers are being
retained or promoted by their
firms. Lack of access is one
part of problem, but the bigger to help other ethnic minority
challenge is retention. We
need to be honest about why
the culture in many firms is
not inclusive.
Winner
Diala Minott
Partner, Paul Hastings
Diala Minott has overcome more
obstacles than most lawyers —
including dealing with clients
who would not speak to a
woman when she was working
on deals in the Middle East,
earlier in her career.
Minott is now head of the UK
credit funds practice at Paul
Hastings in London. She
advised on, and drafted, laws for
Gibraltar last year to make it a
competitive jurisdiction for
funds post-Brexit.
Minott’s team is
experimenting with tech. For
example, it is building a
platform with private equity
firm Pantheon Ventures that
aims to smooth the investor
onboarding process. She has
also led at the firm on the
creation of funds investing in
women-led businesses and
ESG-rated products.
With investment manager
PGIM, Minott launched a
mentorship programme for
young women from
disadvantaged backgrounds.
o address the lack
of ethnicabout the first corporate
diversity
has often beenby theProfiles
the legal
industry, it is not
enough to focus
Hervé Ekué
Partner, Allen & Overy
Hervé Ekué co-led the legal
team that advised a syndicate
of three banks on the European
Investment Bank’s first issue of
a digital bond on the ethereum
public blockchain. Before this,
two other banks in Europe had
tried similar projects on private
blockchains, which is a less
complex undertaking. This is
the first case in Europe where
notes have been subscribed to
several dealers, in this case
Goldman Sachs, Santander and
Société Générale. The two-year
€100m bond will give the EIB,
the lending arm of the EU, faster
access to alternative sources of
finance to fund projects.
As managing partner of the
Paris office, Ekué has overseen
revenue growth of 28 per cent
in the past three years and has
led programmes to make the
office more inclusive for all.
FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FTReports
FTReports| 17
| 25
FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe
Case studies Diversity and inclusion
Pressure to have more diverse increased ethnic minority recruitment, retention, promotion the strategy does not fall foul of The firm offered 12 paid internships
representation is driving change. representation in the firm’s intake. and representation of people from anti-discrimination legislation. via its ethnic minority access
diverse backgrounds across the firm. scheme and published its first
Winner Addleshaw Goddard The strategy extends to scrutiny of Allen & Overy ethnicity pay gap report. It was one
Browne Jacobson Addleshaw Goddard was the the firm’s supply chain and The magic circle firm was the first of the first firms accredited by the
The firm has introduced first law firm to partner supporting minority ethnic-owned law firm to publish an ethnicity “stay UK government-backed “disability
initiatives to help with the BBC on its businesses. All employee processes gap” report, which shows the confidence” scheme, which tackles
improve social mobility 50:50 equality project involve ethnicity data to try to difference in retention for Bame barriers to employment.
Diala Minott, winner of an Innovative Lawyers award, says her in the legal profession. aimed at featuring detect and address biases. (black, Asian and minority ethnic)
upbringing taught her the power of education and giving people Most notably, it more female voices in employees compared with white Hogan Lovells
opportunities. She tries to apply that lesson in her career today, removed academic the media. The Simmons & Simmons colleagues. The firm found Asian As well as internal initiatives, the
developing a team that helps clients, whether in using technology to grade requirements for initiative involved The firm provided 150 hours of and minority ethnic colleagues leave firm has taken on a consulting role
I amtransform their businesses,
a proud member of the or in initiatives such as funds that support training contracts and for counting how many men legal advice to help hedge fund the firm an average seven months advising several clients on diversity,
women inlawbusiness.
scheme run vacation schemes in 2016, long and women from the firm were Capstone Investment Advisors in earlier than white equity, and inclusion
compiled
non-profit bodyby RSGi researchers and FT editors before other UK firms undertook put forward for media opportunities. the launch of the 10,000 Black counterparts, with black strategies alongside the
Sponsors for Educational similar moves. The change allowed Since reporting 57 per cent male and Interns programme in the UK, colleagues leaving two firm’s employment,
Opportunity London. It was
instrumental in helping me Schemes should involve more associates from diverse backgrounds, says Natalie A Carter
the firm to identify “exceptional
talent”, with about a third of training
42 per cent female voices in late
2020, the firm has improved the
involving more than 700
organisations that will offer paid
years and five months
earlier. The firm will
investigations and
privacy practice areas.
obtain a training contract in contract offers going to candidates statistics by providing media work experience to a total of 10,000 report the stay gap In Europe, the firm has
my second year of university. providing information, particularly in situations In an environment where who would have previously been training and putting more women to black interns over five years. The annually. introduced billable
When I joined SEO London mentorship and application where there are no other your progression relies on the ineligible. the fore in campaigns and pitches. project builds on the 100 Black hours credits for time
in 2008, I made a commitment support for people of colour. senior lawyers — whom they allocation of good work and The firm’s junior ranks are evenly Interns project for investment DWF spent on diversity, equity
But I have become trust — to step in to help. internal relationships, it is split between elite university Russell Herbert Smith Freehills management firms. The scheme Seema Bains, head of diversity and inclusion projects.
students gain access to the uncomfortable at encouraging Raising a discrimination crucial that law firms educate Group and non-Russell Group The firm launched a global strategy addresses underrepresentation of and inclusion at DWF, has ensured Researched, compiled and ranked
legal industry. I have designed people of colour to enter a concern can be career-limiting their workforces about racial graduates, compared with a legal called 10 Actions for Change to black employees, which can be female representation on every by RSGi. ‘Winner’ indicates the
and participated in many professional environment or worse, career-ending — discrimination and industry average of 84 per cent improve racial and ethnic diversity. hidden when the focus is on all non- client-facing team and is working to organisation won an FT Innovative
programmes focused on that, despite actively especially if concerns involve a microaggressions and ensure Russell Group. The change also These actions include improving white groups, while also ensuring improve other areas of inclusion. Lawyers 2021 award
recruiting these candidates, is high-performing fee earner. work is allocated fairly.
not doing enough to help them
build longstanding careers.
Law firms have a While participating in
responsibility to establish safe, diversity initiatives and paying
Sharon Lewis Richard Frances Murphy Hugo Plowman Yen Sum
In the UK Law Society’s confidential processes to allow consultants to facilitate them McMorris
2020 Race for Inclusion instances of discrimination to can be helpful, involving
report, ethnic minority be handled without fear of associates from diverse Partner, Hogan Lovells Partner, Morgan Lewis Partner, Mishcon de Reya Partner, Latham & Watkins
lawyers reported lower levels isolation or retaliation. And backgrounds in the conception Having led the capital markets Partner, Bird & Bird Frances Murphy has led on Hugo Plowman has a broad Yen Sum started her career as a
of workplace wellbeing department leaders should be of these schemes would make practice at Hogan Lovells for Following his time as general significant EU competition law remit. He leads a department commodities trader at mining
compared with their white held to account if ethnic the exercise more effective. almost 10 years, Sharon Lewis counsel at a digital media cases including the interchange that encompasses the fraud and company BHP, and also spent
counterparts, which has led to minority lawyers in their
many taking a break from the teams keep leaving to go in-
The success of these initiatives
should be regularly assessed.
became the first female head
of finance at the firm in 2014,
company, Richard McMorris is
responsible for the creation of
fee litigation case against Visa,
which last year ended in a
investigations team and
insolvency and restructuring, as
time at Barclays Capital as an
investment banker. She says her
profession. house, or to other firms, or into In 2014, the Black Solicitors and was appointed head of the Bird & Bird’s digital rights and victory for supermarket group well as the ancillary businesses time as a buyer of legal services
After seeing several of my other industries. Firms must Network set up Creating financial institutions group in assets group. He is committed J Sainsbury in the UK Supreme of MDR Cyber, the firm’s cyber and a varied career give her a
black colleagues leave the law, do more to understand the Pathways, a programme 2018. to organising legal and business Court. security offering, and MDR different perspective on the
it became clear to me that experiences of ethnic minority providing soft skill workshops She has pioneered practice advice around how clients use Murphy has a record of Discover, its ediscovery and practice of law.
focusing on graduate lawyers and to recognise the and cross-firm mentoring areas relating to financial particular tools or assets, such setting the terms of data analytics arm. At Linklaters, Sum started a
Samantha recruitment alone to improve
diversity in law firms was Thomas le Vert
barriers holding them back.
The Law Society report Natalie Lewis
between junior and senior
ethnic minority lawyers. The
technology at Hogan Lovells
since the industry first
as data, in their business.
The group, which is an
engagement for competition
law in the UK. She was behind
The development of MDR
Cyber was driven by clients’
“tactical opportunities” team
that uses third-party data to
Hutchinson equivalent to filling up a
bucket with holes in it.
states that, between 2015 and
2020, some 42 per cent of
support I received from other
senior black lawyers through
emerged, and led on the firm’s
partnership with Innovate
international, cross-practice and
cross-sector initiative, helps
the first challenge to the use of
interim measures directions by
desire for a global incident
response team that has
analyse macroeconomic trends
affecting clients, and she took
A law firm increasing Partner,
its White & Case Partner,
thisTravers
scheme Smith
is one of the main Finance, the trade body for clients implement policies for the Competition and Markets expertise in cross-border asset this with her to Latham in 2018.
Partner, Cadwalader,intake of “diverse” trainees Thomas is Le Vert joined White & Nataliereasons
Lewis was I was made
ableato continue fintechs in the UK. managing digital rights and Authority on behalf of London recovery, cyber insurance and Sum now leads the European
Wickersham & Taft not evidence that a law Case
firminis2013 to help the firm partnerpractising
in July 2021 whenandI lacked
has Lewis is also a sponsor of assets globally, including Metal Exchange; she also data protection law while also restructuring and special
Samantha Hutchinson is a
inclusive. If anything,expand
I have seen black taken the
these its capital markets lead on
support financial
in the team I was in. the Global FinTech Mentor and tracking regulatory updates. He challenged the CMA on the use working alongside cyber situations team, as well as
pioneer of fund finance, whichare simply sending
schemes applicants
practice in France. Inspired bynot markets Theinfrastructure,
programme’s fintech
success is Momentum Programme — views his role as that of a of undisclosed evidence against security experts and reputation managing the finance team and
enables private markets more ethnic minorityobservingtrainees developments in the and payments
down to matters. She it is run
the fact that Hogan Lovells’ fintech strategic consultant, helping pharma company Concordia. management specialists. To the new private capital practice.
managers to access liquidity at
into an unwelcoming US,
culture.
progressed
Le Vert advised on because assisted
byEuroclear,
senior black onelawyers.
of the incubator — which has clients that come to him asking As managing partner of the support the initiative, Plowman Sum says she tries to lead by
fund level. It is a fast-growing
As a black woman who has thethey
Mediawan, were not
first special biggest settlement
However, houses,
schemes in as this
such supported more than 20 how to get things done, rather London office, she led the firm brought in a cyber security example on challenges facing
area of finance in thepractised
UK. She in more than purpose
one acquisition company the design
teachofusa only
system howtotoensure
cope; law companies in bringing than bringing specific legal as it adapted to working from specialist who is not a lawyer, the legal industry, such as
developed a practicefirm focusing (Spac)I listingdeemed
in the City of London,
a ‘good fit’euro settlement
in France in 2016. firms should of securities
ask themselves products to market. queries. home during Covid. but is now a partner at Mishcon. diversity and wellbeing.
on fund finance at Hogan He
see a clear disconnect between has since become the go-to could continue
why theyafter Brexit.
are still She
necessary.
Lovells before moving to
management expert,
and teams aboutadvising either the also advised Pay.UK,
As clients which
grow more runs
Dentons in 2013. In 2018, her
the importance issuer or the underwriter
of diversity. white maleson whoallbecame the UK’s moneyintransfer
specific demands system,
for diverse
team moved to Cadwalader,
There is often no clearsix Paris-listedpartnersSpacs sostayed
far. in the same on request-to-pay,
counsel, thisaconversation
payment will
which specialises in finance.
guidance on what changes Le Vert hasfirm,
advisedbuton
only 20 per cent ofmechanism continue.that Firms
offers anmust reflect
In the past 12 months,
firmsthe need to make atseveral
a significant
ethnicinitial publicmales were alternative
minority on the toculture
direct debit. Lewis
of their
team has worked ondepartment
more than level. offerings, including promoted the two
internally. has taken a strong interest
departments in
and design
50 transactions totalling £18bn in programmes
Interest largest in FranceI have
in theserved
past two
on many the rolestrategies
of payments to support and
in value. In one, Hutchinson
such as reverse mentoring years:and
glass bottle
hiringmaker
panels in my career and infrastructure and the
retain ethnic effect of
minority
advised Standard Chartered
unconscious bias training, Verallia,
and and Française
have seendes Jeux,
black applicants notnew technologies
lawyers. Success in finance.
will depend
Bank on one of the world’s
support first the national lottery
for employee-led progressedoperator. He they were She on
because is active
tracking in industry-wide
progress and
impact-focused fundnetworks,
financingsseems to wane specialises
once in notthe deemed
IPOs of private
a “good fit”, evenlobbying efforts
holding aroundto account.
leaders
in its partnership with weagetlarge
down to a teamequity-backed
level. companies,
with the right qualifications,regulation, particularly more
investment manager. It is extremely difficult estimating
for hewhile has advised 80 male
some white sophisticated
The writer regulation
is a seniorofassociate at
She leads Cadwalader’s per cent of such
individuals to raise concerns listings on
applicants, the qualified,
similarly fintechanand financial market
international law firm. These
London women’s network. about microaggressions, Paris Euronext bourse.
made it through as they wereinfrastructure.
are personal views based on her
tokenism or favouritism, seen as a “good fit”. experiences and those of peers.
2614| FTReports
| FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FTReports
FTReports| 15
| 27

FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe

Fintech pioneers navigate

UK law firms
Moving forward: City firms are taking action graduate
attorney interns,
at Gidewe went toNouel,
Loyrette a widerassisted
talent with It allows 50 hours
NFT-based artwork work
doesa year on diversity, give
not automatically
to try to retain diverse solicitors pool,”
thissays Aslam.itThis
by making clearinvolved
that SociétémoreGénérale
than 30 was such theasbuyer
mentoring and outreach,
the copyright, unlessto count
this as
is specified,
Esan Swan/FT lawproviding
firms collaborating
custody as aontechnical
the best service
approach to as billable
and, meaning hours.
theThe NFTcap on hours
owner may not is because
be allowed“we to
target
such, the desired
would notcandidates.
need additional “We’ve got to
authorisation. don’t want toor
distribute stop people from it.
commercialise doing
Andlegal
just work
because

the law’efforts
s grey areas
equality, also published in 2020. It found City makeItsurehelped we are
thatdoing it forhad
Lucchesi the worked
industryat the that gets them
a piece promoted”.
of digital art is on the blockchain, there

boost
law firms’ preoccupation with early rather
French than just oneauthority.
financial law firm.”“We have a very Preventing
is no guarantee conversations
that it is notabout
a copydiversity
of someone
recruitment was flawed because it assumes During lockdowns, firms
good understanding of how setthese
up virtual
discussions becomingelse’s worksiloedandistherefore
important. “We are making
worthless.
that, once a candidate completes a traineeship, recruitment
work and the campaigns,
timeframes,” broadening
he says.the range it a business
Many legal target rather than
questions theoutstanding
are still HR
“they experience equality of progression and of universities
Lawyers try they can target.
to give “Before,
their fintech [they]
customers function,”
regarding says Seema Bains,
decentralised insurance
finance, suchpartner
as cross-
professional opportunity”— which is not would say: wespace
breathing do wantfromtooverregulation,
go to beyond Russell but they and head of
border the global
provision diversity and
of settlement inclusion
services, says

around diversity
necessarily the case. Group
needuniversities but we don’t have the
to protect consumers. group
Lewis:at DWF.
“We stillReverse
needmentoring,
to come up with pairing
an
While hiring is important, it is only part of the budget,”
LegalAlonge
headachessays.connected
Now, therewith is no excuse. Bame junior lawyers
international systemwith
tosenior
decidepartners,
which lawhas
Financial services Legal seldom see is the army of legal pioneers working regulation. When Lisbon law firm Abreu
to make these services possible. Advogados was helping to set up Tokapi,
problem. The Bridge Group found that it takes
those from ethnic minority backgrounds two
She
aresuch
says a lackfinance
decentralised
less aslikely
of trustare
to share
the losses
canalready
mean employees
their ethnicity
incurred by traders
emerging,
data but
when
been “transformational,”
applies
to includes
to new-generation
get the dialogue
deciding going.”
shefintech
says. “It’s
where an asset is located —
helped
assets.” This
insights will help strike a Lawyers are having to wrestle with new Europe’s first fully regulated NFT marketplace, years longer to progress to partner than their building trust is crucial
cryptocurrency for employers
exchange Binance had to be
anable Herbert
something Smith Freehills hasrules
conflict-of-law introduced
often refer“race
to.
welcome balance between financial concepts against a setting of old legal
frameworks. They are operating in grey areas
a crucial issue was understanding whether an
NFT could be classed as a security — a tradeable
white peers. According to the Solicitors
Regulation Authority, the regulatory body in
to outage
identifyinproblems,
Retention
bring a lawsuit
May. Thesee
remains
trends
traders
a problem,
because
areand set targets.
struggling
though.has
the company A&O
to
no
leaders”
Given
services
inthe
each
function
could take
practice group
complexities
yearsintothe London
reach
and business
involved, he says, it
office, to help
international
overregulation and where regulators are still writing the rules. financial asset — or not. England and Wales, only 8 per cent of partners analysed its workforce
headquarters lastregistered
and is not year and found that
or regulated teams engage but
consensus, withthe
racial
factdiversity issuesto
that it appears andbe top
Inclusion Hiring
protection for consumers, practices “It is not youroftraditional
accusations empty legal service
rhetoric. But the where
pace of NFTs are often used to trade and collect at large firms are from a Bame background. black lawyers
in any leave almost two and a half years
jurisdiction. targets.
of theGary
agenda Hommel, partner and
for governments and race leader, is
regulators
you are applying templates created by someone digital art and digital sport memorabilia. Their Some firms are using fairer recruitment before white peers. Theisfirm
whatsays it will monitorif a meets regularly with peers to “share what works
are changing
writes Maija Palmer but retention ofelse,” change
firmssays
and commitment
Natalie
has intensified
to diversifying
Lewis,infinancial services
the past year,
law
and
according value can rise and fall and they are traded much processes for junior talent, such as contextual this
Another
gap and whose
company
question
commits to closing
servers
would
host an
happen
it. NFT artwork and keep
“both promising
Otherthe momentum
matters
and exciting”.
up”. Lorraine
being discussed Gibson,
are which kind

II
minority employees is a
t is boom time for new financial services.
markets
to Sarah
building
partner
Alonge,
it from
at diversity
Travers Smith.
scratch.”
“This [is]
and inclusion
She advised
adviser like stocks — even though many see them as a
Pay.UK,
hiring — where a candidate’s background is Distributing work fairly
suffers a catastrophic will help.
technical Alonge
failure, or goes business development
of exchanges director and
blockchain-based also acan
assets racebe
at the Law Society of England and Wales, which collectible, similar to of
improve retention a classic
juniorcar or rareso
solicitors wine.
that the that “ethnic diversity in the profession is in line opportunities to progress. Many left to go to considered — and CV-blind recruiting. says:
out“People
of business.stay longer if the work is better.” In leader, traded says:
on,“Weand couldn’t
how to tax achieve
them.what we want
Pioneering
problem, writes
The value of the Emma Jacobswhich
world’s cryptocurrencies runs the
represents UK’s money
200,000 transfer system, on
solicitors. If NFTs wereofseen
percentage newlyas aqualified
security,lawyers
Tokapifrom
would with UK society as a whole and has been smaller firms or in-house legal roles, where they Traditionally, large law firms have tried to some“Sometimes,
firms, work allocation
entrepreneurs managers — who
don’t really to lawyers
by leaving willit first
to our small
help D&I team.
regulators setIt’s
thenot
case law
passed a record $2.4tn this year, while the the design and launch
“The legal of a “request-to-pay”
profession is moving in the right have to have
ethnic been licensed
minorities as a financial
would match the cohort at improving over the years”. However, the thought the culture would be more inclusive. address the lack of black candidates by reaching assess several factors
understand the legal —implications,”
are also charged with
says Duarte leaving it onspend
and then the shoulders
the nextof blacktesting
decade colleagues.”
it.
volume of non-fungible
n the wake tokens murder
of George Floyd’s (NFTs) sold
last messaging service
direction,” that allows businesses and
she says. intermediary,
recruitment.in an extra complication for experience was uneven. Black, Asian and As one HR practitioner cited in the survey put for old solutions, says Waheed Aslam, asset taking
— ordiversity into account.
that, in creating an NFT, you are offering
in the
yearfirst
by ahalf reached
police officermore than
in the US,$2.5bn.
many law consumers to settle
Faced with bills quickly
pressure and flexibly.
from clients, and within, the start-up. The Bank
Allen & Overy has of Portugal
also releasedhas not ruled
targets: 15 per minority ethnic (Bame) solicitors were more it: “There is so much being put into attracting management and investment funds lead at Hogan
permanent Lovells requiresofthat
assurance the15 perbetween
link cent of athe
The sale ofin
firms anthe
NFTUKrepresenting a digital work
put out statements “There werediversity
to improve no precedents ,” she says.
and inclusion, some“It firms oncent
the issue but
ethnic Diogo Duarte,
minority partnersco-head of 35 per
by 2025; pretty comfortable
likely than white [with the]toconclusion
solicitors that,
be in smaller if
firms young
firsttalent into the
structured pipeline
product as aand then you
security tokenlook
on a Simmons & Simmons:
Next-generation they would
assets: an NFTtypically try pitching
blockchainteamreference
are drawnand from theethnic
digital asset. “You RESEARCH AND AWARD SUPPORTED BY
RESEARCH AND AWARD SUPPORTED BY
by artist Beeple forblack
supporting $69.3mandatethnic
Christie’s made
minority meant
havesitting downto
committed with the business
bolder and using
targets. Herbert banking and finance
cent ethnic minority at Abreu Advogados,
trainees. Linklatersmade
wants you don’t
and promise capital
in lower-paying gainsand
sectors andpractice
if you don’t
areas. at the curve
public and people
blockchain, are was
there dropping off. Itover
ambiguity is to representing
find a black Oxbridge undergraduate.
this digital collage by the minorities.
need to have “Toproper
progress as a lawyer,plans,
contingency you need to
the headlines in March.
employees, Paymenttocards
and pledging from
increase lotsSmith
of whiteboards and
Freehills has diagrams.”
said it will increase the thetocase that NFTs
increase were not
its number securities
of black as there
partners fivefold promise to manage
Solicitors the trading of
told researchers these
they felt they did just not acceptable.”
custody of the securities and regarding who However,
contemporary his firm takesBeeple
artist a different
soldapproach.
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that even if a server
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holdstheme was reinforced
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in case anything goes by the
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$69.3m Black Interns, a scheme offering
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Case studies Case studies Moving the marketClifford

Social justice
Lawyers are making a positive
impact, from tackling domestic
violence to advising asylum seekers.
Winner
Uría Menéndez
Over nine years, the firm led the
wrongful-death claim for Samba
Martine, an immigrant held in a
Spanish detention facility and
denied adequate medical attention
despite being HIV-positive. It marks
the first time the Spanish
government has admitted
responsibility for a death in
immigration detention. The outcome
of this case will oblige the state to
improve medical services and
protocols of immigration facilities.
Cobalt
The firm worked with campaign
groups such as the Association of
LGBT and Their Friends Mozaika on
two cases in Latvia, challenging
discrimination against same-sex
couples. The Latvian constitutional
court said same-sex couples are
entitled to register for marriage and
their families should enjoy the same
protections as heterosexual couples.
These are the first cases where the
Latvian constitutional court ruled in
favour of same-sex marriages.
Dentons
To support Poland’s LGBT+
forward
Chance and Macfarlanes
The two firms provided lawyers and
Lawyers have been turning a period of
trainees to work alongside students
providing pro bono advice to asylum Spac deals to happen faster, with more access to a tax incentive bill. The lawyers
economic uncertainty into an opportunity seekers for the University of flexibility. It was the largest public offering secured an arrangement in which any
for progress. London’s Refugee Law Clinic. So far, on the Paris market in 2020. company can receive a tax break for
the clinic, which was set up in 2020, investing money into funds financing
Winner has received 34 referrals, with the Bird & Bird research and development or new start-
Travers Smith firms contributing 50 volunteers. Oxygy, the law firm’s consulting arm, ups — enabling them to potentially
To prepare for Brexit, the firm helped worked with construction and property recoup their losses, or even make a profit.
lawyers at the securities depository Deighton Pierce Glynn and company Lendlease to support the The firm worked with BlueCrow to set up
Euroclear design a system ensuring a DLA Piper creation of Federated Innovation, an the first fund of this kind and lobbied the
backstop for the euro settlement of The firms started a project to ecosystem in Milan designed to foster new government to secure legal approval.
securities. With more than £1tn worth of improve access to justice for asylum ideas. The initiative gathered 34
securities settled using Euroclear’s Crest seekers and refugees in the UK. companies to work on projects to help the Abreu Advogados
system daily, putting in place facilities to Lawyers wrote letters to ask for city recover from the pandemic and The firm advised a group of entrepreneurs
prevent any disruption was essential. their client’s transfer away from the become more environmentally on the launch of a non-fungible token
community, the firm offers pro-bono attention to support Lawyers
the case.secured
In approval
Day byfrom Day theblog,Bank
by interpreting much-criticised Napier barracks, a sustainable. The law firm and Oxygy (NFT) marketplace called Tokapi, helping
support to campaign groups, of England and regulators,
April, the court’s advocate-general agreed
legislation for parents and teachers former military facility, within 24 worked on the governance framework and the business overcome complications in
running discussions at events for said Bulgaria should contractual
consider agreements with Crest
of dyslexic children. Lawyers hours of arrival. The project intellectual property policies and devised registering with Portugal’s central bank
clients, and founding a group at the accepting family tiesmembers,
for same-sexand enabled the introduction
answered of and gave
legal questions increases the number of asylum Jason Alden/Bloomberg an innovation process to give structure to because these virtual assets are held on
Warsaw bar to create a safe the technical model advice
couples and their children. neededtototackleaccessdaily challenges
financial products involving
seekers who candigital assets. and
be assisted the projects. blockchain. The lawyers addressed
environment for LGBT+ lawyers. central bank money.faced by families. The blog The capital markets
includes allows team at law
specialist firm lawyers
public Gide to questions on VAT rules in Europe,
Olga Ziegler, head of Dentons’ Hogan Lovells a direct link to lawyers to answerLoyrette Nouel and on
focus members
strategicof litigation.
Gide 255, Hogan Lovells advising the entrepreneurs on adapting
LGBT+ affinity group in Poland, The firm updated itsCadwalader,
staff domestic Wickersham
further&questions
Taft posed bythe firm’s client innovation team, advised
readers. Lawyers in the firm’s Moscow office their business model to make the tax
formed initiatives to raise awareness Lawyers
abuse policy to include worked with the bank Investec to
emergency Forge on the legal framework for Europe’s
Sorainen assisted Netflix in launching a Russian structure simpler.
of the community’s rights. Partner launch and
funds and accommodation, a €1bn secured note programme
Ashurst first issuance Toof asupport
structured debt product
Covid-19 recovery version of its streaming service, setting up
Igor Ostrowski manages the supported campaigner with a UK insurer. ByAs
Sharon agreeing
part of itswith the
programme on the public blockchain
opposing projects in the platform,
BalticsTezos,
and Belarus, a joint venture with Russian media Covington & Burling
Equaversity Foundation, a rating agency Moody’s
Livermore and the Employers to give
modern the notes
slavery, a committed
the firm in April 2021. the firm provided pro-bono advice. company National Media Group to comply The digital health team combines experts
fundraising campaign for related Initiative on Domesticcapital
Abuserating,
on lawyers to enabled
a 10-yearinvesting
grant to aid Anti- Lawyers assisted on projects with laws preventing majority foreign in regulation, data and privacy, intellectual
initiatives in Poland. insurers to
creating a template domestic access returns
abuse SlaveryofInternational,
around 1.5-2 the campaign
White & Case including: an app called Act on Crisis shareholders of media companies, and property, government affairs and
policy. Working with per centHestia,
charity — higher than
group.theyIt could
is goingaccess After securingthat
beyond advising the provides
first special purpose
mental health advice negotiating regulations. This creates competition law to advise digital
Freshfields Bruckhaus Deringer the firm developed an before.
app forBy using an Irish
clientsspecial purpose by actively
on compliance acquisition company
and virtual(Spac) in France
support in a
groups; opportunities for Russian filmmakers and healthcare clients. One such client is
Partnering with ILGA-Europe, a vehicle,
victims to access support andinsurers canmapping
access this credit and reviewing
suppliers 2016, last yearrespirator
the firm advised
that usesa ultraviolet light gives local audiences access to Netlix’s clinical artificial intelligence company
campaigning umbrella organisation, exposure
contributed to the UK’s Domesticwithout compromising
contracts. on the syndicate of banks
to kill on themolecules;
virus public offering
and support foreign content with Russian subtitles. Sensyne Health, which acts as an interface
the lawyers argued for the matching
Abuse Bill, which gained royal adjustment Archana
they are Kotecha,
required tofounderofof2MX Organic.
social forUnlike the first
Lithuania’s FrenchPublic
National Netflix estimates it will have more than 1m between doctors and patients on the one
recognition of ties between LGBT+ demonstrate
assent in April. Lawyers also helpedto regulators.
enterprise The Remedy Project, Spac, which required shareholder
Health Centre, on developing an app Russian subscribers by the end of 2021. hand, and pharmaceutical companies on
parents and their children in secure more than £3m in which supports vulnerable approval,workers, this to replicates the model used in
track symptoms. Commended: Natalia Gulyaeva. the other, analysing data to recommend
Bulgaria before the European Court Gide Loyrette
compensation for victims of abuse. Nouelwas awarded a grant by thethe US that requires
firm. approval
Researched, from the
compiled and ranked where investment should be made.
of Justice. Freshfields provided pro- Société Générale Forge is a new
Ashurst alsoentity
createdsetan online
board but notby shareholders,
RSGi. ‘Winner’ andindicates
gives the Vieira de Almeida Researched, compiled and ranked by RSGi.
bono work, helped develop Abreu Advogados up by the French investment resource to bank to staff about
inform investors the right to redeem
organisation wontheir
an FT shares
Innovative The firm helped the investment fund ‘Winner’ indicates the organisation won an
arguments, and generated media The firm contributedmanage investing and
to the Dyslexia issuance
modern of
slavery. after an acquisition
Lawyers is made. This allows
2021 award BlueCrow give companies in Portugal FT Innovative Lawyers 2021 award
28 | FTReports FINANCIAL TIMES Friday 15 October 2021

FT Innovative Lawyers Europe

Airlines survive to fly another day

Aviation in crisis Legal effects of the pandemic. Bankruptcy
proceedings in 2020 effectively wiped out its
innovation was key as shareholders and its operations have shrunk
companies restructured, dramatically.
The ownership of NAS is complex but it
writes Philip Georgiadis consists mainly of Irish-owned subsidiaries
under a Norwegian umbrella company, which

W
hen Covid tightened its grip on
the world between February
and April 2020, the effect on
the aviation industry was
devastating. As borders closed,
the skies went quiet and airlines searched for
somewhere to park grounded aircraft.
The industry had to press “pause” — but, in
companies’ headquarters, activity reached
fever pitch as they raised cash, sold assets and,
in many cases, restructured their businesses.
The aim was to survive the collapse in passenger
numbers and avoid corporate failures — and
lawyers were involved at every stage.
Few airlines had time to spare. With high
fixed costs, the industry burnt through about
$150bn in cash within months, says the
International Air Transport Association. Calls
with lawyers had to be hastily arranged. “It was
obviously a challenging time . . . even to this
day, I have never met the clients despite having
done this massive job with them,” says Craig
Montgomery, a partner at Freshfields
Bruckhaus Deringer in London.
Freshfields helped state-owned Malaysia
Airlines to reduce its obligations on leases for
aircraft as part of its restructuring. Such leases
are a primary focus of any reorganisation in the
aviation sector as they account for a significant
chunk of a company’s costs.
Urgent: Malaysia Airlines wanted to cut its obligations on aircraft leases quickly — Shinya Sawai
Malaysia Airlines wanted to “get on with it”,
Montgomery says. It was still paying its
obligations in full and “needed to find a
solution . . . as quickly as it could”. At the same
time, the lessors did not want to see the sudden
return of their assets, especially large airliners,
as they faced logistical, storage and
maintenance costs with no hope of any new
leases for months.
Freshfields turned to the English courts and a
scheme of arrangement — a tool that is often
used in financial restructuring but never before
with aircraft leases. The leaseholders agreed to
a class arrangement as a replacement for the
previous ad hoc leases, which made the
settlement for Malaysia Airlines more efficient.
The crisis underlined the international
nature of the industry. While many airlines
have a country’s name on their aircraft
fuselages, their assets are mobile and they have
entities in various jurisdictions.
For Malaysia Airlines, English law was
preferable to the courts in its home country
because it is recognised globally. A scheme of
arrangement turned out to be “an obvious
solution for a lease”, Montgomery says.
Lawyers had to hunt for innovative solutions.
Allen & Overy helped Virgin Atlantic through
the first restructuring under the July 2020
Companies Act update, which allows courts to
approve a plan even if not every class of
stakeholder has backed it. White & Case helped
Air France-KLM navigate EU ownership and
state-aid rules as it refinanced its debt.
Many airlines have shrunk over the past 18
months, and one of the most high-profile
casualties has been Norwegian Air Shuttle. The
Oslo-based carrier grew rapidly in the 2010s,
moving into low-cost transatlantic flights, but
fragile finances meant that it was exposed to the
allowed restructuring to take place in the
Republic of Ireland, with a parallel programme
in Norway. It was the first time an Irish
examinership was used to restructure the
obligations of a non-EU company.
The move reduced the NAS fleet from 150 to
50 aircraft, cut Norwegian’s debt by about
$7.5bn, included a capital raise, and terminated
aircraft orders worth about $10bn. Lawyers in
the case say the restructuring could not have
been achieved under Norwegian law alone,
particularly the termination of leases that were
covered by the Cape Town Convention, which
protects high-value aviation assets.
Ruairi Rynn, partner at law firm William Fry,
which acted for the examiner in the Irish
process, says working in an Irish court with a
Norwegian company was “unique and unusual,
but ultimately highly successful”.
Throughout the process, lawyers and airline
management became used to meeting virtually
and, in some cases, there was no physical face-
to-face contact. The rapid adoption of
videoconferencing was a success but airline
executives, whose fortunes rely on corporate
travel, are glad to hear businesses say that they
still prefer in-person meetings. “If I were doing
it again and had the option, I would still go to see
the client,” says Montgomery. “There is no
substitute for doing that in person — which, of
course, is good news for the client,” he says.

Case studies Aviation

When Covid-19 led to travel bans,
lawyers navigated the complexities
of processes such as restructurings,
while limiting loss of control.
Winner
Freshfields Bruckhaus Deringer
As the pandemic struck airline
revenues, state-owned Malaysia
Airlines considered a Chapter 11
insolvency. The lawyers devised an
alternative solution using the
English scheme of arrangement to
create cost efficiencies in the client’s
aircraft leases. This reduced
liabilities by $3.6bn and cut rents by
up to 40 per cent.
Freshfields Lab, the law
firm’s technology arm,
used artificial
intelligence to review
contracts and created
a tool to search for
specific language in the
documentation, which
speeded up negotiations.
This approach avoided a
state-owned company going into
insolvency.
Allen & Overy
In April 2020, Virgin Atlantic
Airways, owned by Virgin Group and
Delta Air Lines, brought in Allen &
Overy to help it avoid going into
administration.
Virgin Atlantic was one of the first
companies to apply the UK’s 2020
corporate insolvency and
governance bill, designed to prevent
companies having to file for
bankruptcy because of the
pandemic. Its lawyers lobbied to
remove terms from the
legislation that would
have excluded Virgin
from benefiting. They
helped the company
propose and agree a
new restructuring
plan with creditors
and had the procedure
recognised by the US
Chapter 15 bankruptcy code
court. The plan will inject £1.2bn
over 18 months.
White & Case
Air France-KLM‘s ownership
structure includes the French and
Dutch states, Delta Air Lines and
state-backed China Eastern Airlines.
So, rather than seek a direct loan
from the French state, which would
have made France the majority
owner, the lawyers secured a
financing deal whereby a
shareholder loan of €3bn was
recapitalised through a deeply
subordinated hybrid securities
issuance. In addition, they combined
this with a €1bn capital increase
through a public offering. That
meant the financing was classified
as debt, which does not carry voting
rights or affect the shareholder
balance.
PLMJ
TAP Air Portugal was unable to
apply for state aid under EU rules
because it was already in
financial difficulties at
the onset of the
pandemic. But the
lawyers helped the
airline access state
aid under
restructuring laws
instead, including
negotiating with private
shareholder Atlantic Gateway to
sell a 22.5 per cent stake in the
airline to the Portuguese state.
William Fry
The lawyers represented the
examiner KPMG in the restructuring
of Norwegian Air. The airline is
mostly made up of Irish subsidiaries,
while the parent company is
Norwegian. The lawyers completed
a scheme of arrangement deal in the
Irish courts, demonstrating to the
Norwegian courts that this was
consistent with Norwegian law. The
restructuring included a reduction in
the airline’s fleet from 150 to 50
aircraft, a capital raising of up
to NKr6bn ($725m) and a
debt reduction of
NKr65bn ($7.5bn).
A&L Goodbody
Voyager Aviation
Holdings, an aircraft
leasing company based in
Ireland, was hit badly when
the pandemic left its airline clients
either unable to pay bills or needing
to renegotiate leases. This left
Voyager unable to pay $415.3m of
senior notes owed in August 2021.
The law firm demonstrated how an
Irish scheme of arrangement could
be used for the restructuring of the
existing notes, thus convincing
98.49 per cent of noteholders to
back an out-of-court deal to help
Voyager write down its debt and
avoid Chapter 11 insolvency.
Researched, compiled and ranked
by RSGi. ‘Winner’ indicates the
organisation won an FT Innovative
Lawyers 2021 award
3010| FTReports
| FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES Friday 15 October 2021 FTReports | 31

FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT Innovative Lawyers Europe

Eightfor
Calls firms building
action specialist skills
on ESG Research
methodology

issues boosts demand Europe 2021

FT Innovative Lawyers Europe 2021 is a

for legal expertise

ranking, report and awards scheme for
lawyers based in the region. The
Financial Times and its research partner,
RSGi, have devised a unique
methodology to rank lawyers on
innovation. Law firms and in-house legal

L
ESG investing Law firms are aw firms are racing to catch up with
the financial sector’s embrace of
helping companies to meet environmental, social and
sustainability targets, writes governance (ESG) investing as they
see the potential for deals and
Patrick Temple-West regulations aimed at combatting global
warming to deliver billable hours.
Nearly all the global law firms now have ESG
or sustainability practices and the past year has
seen unprecedented activity. From big dollar
M&A deals to contracting work, the legal sector
has recognised the need for ESG action.
At law firm Ashurst, lawyers are working
teams were invited to make submissions.
The categories focus on different areas
deliver on net-zero promises — will only
increase.”
of legal practice, business and
operational management, inclusion and
Ashurst is one of the dozens of law firms that ESG issues. The categories and examples
have teamed up to create open-source contract
clauses that deliver climate solutions. The
featured in the report are drawn from
submissions and nominations from law
initiative, called the Chancery Lane Project, has firms and in-house legal teams. Each
developed contract terms that encourage submission is researched and scored out
suppliers to adopt environmental targets to of 10 for originality, leadership and
reduce a company’s indirect carbon emissions. impact, giving a maximum score of 30
It also offers “coolerplate” generic clauses to (scores for each individual entry are not
make it easier for lawyers to embed climate shown in the report). In addition, law
issues and net-zero targets into a contract. firms were asked to complete a
Social media has exposed companies to questionnaire on use of data and

Illustration: Cat O’Neil

with clients to embed a host of environmental
clauses into contracts. In projects with
construction clients, for instance, an
increasingly standard requirement for
contractors includes mandating an energy
performance certificate (EPC) of at least an “A”
for buildings, to prove they are energy efficient.
Other clauses require parties to meet certain
carbon emissions targets, which, if breached,
require a remediation fee donated to a selected
Ones to watch environmental charity, the firm says.
“Clients are increasingly focusing not only on
public judgment of their ESG credentials, says
Adrian Walker, a partner at Hogan Lovells and
head of the law firm’s ESG practice. This can be
reputationally damaging for those whose
actions fail to match up to their promises.
There is also growing recognition that
companies delivering on ESG commitments
tend to outperform their competitors. “We are
seeing a shift from ESG contractual provisions
that require legal compliance, to those that
drive performance,” he notes.
Bank of America research shows that, during
technology. Each of the 12 questions was
scored out of five and benchmarked
against peers in the region.
Top-ranked submissions in each
When the wind blows: businesses under Lawyers are also needed for corporate ESG global head of environment at Linklaters. “The Court of Human Rights. Following deadly category are featured as mini case
pressure to cut carbon emissions are training
firm, providing disclosures, particularly as regulators are on the detail is really fiddly.” wildfires in Portugal in 2017, young people from studies and shortlisted for the FT
switching to renewable toenergy
clients assources
well as hunt for misleading claims, or greenwashing. ESG is increasingly part of the due diligence the region challenged that countries were not Innovative Lawyers Europe 2021 awards.
Sean Gallup/Getty Images
consulting on projects, such Failure poses material risks, ranging from process in mergers and acquisitions, too. doing enough to combat global warming. Some 493 submissions and nominations
as making privacy policies and litigation to reputational damage, Walker says. Lawyers have seen “Weinstein clauses”, named ESG legal work has even stretched to antitrust were received from 111 law firms and 71
other documents more user- The European Commission is also rolling out after the disgraced film producer Harvey law. The office of the EU’s head of digital and in-house legal teams. RSGi researchers
friendly. LCA’s innovation team is a taxonomy for sustainable finance next year — Weinstein, that require target companies to competition policy, Margrethe Vestager, has assessed them and interviewed clients,

Some small firms in their owncontracts,

smart net-zero commitments
where but how that the stock market plunge around the Covid-19
We are seeing
experimenting withatech
shift from
tools
language processing for document searches and
ESG
such as natural a labelling scheme to help steer investment into
green projects by setting out which activities
disclose allegations of sexual misconduct
among their senior executives, according to law
studied how competition rules could be
changed to work with the EU’s green deal.
senior lawyers, executives, and experts
between July and September 2021.
strategies on policies to contractual provisions that
mainland Europe outpace interplays withtechnology
blockchain
sayobligations;
Anna-Marie
the customers
Slot, augmented
and suppliers,”
automatically
global ESG and
fulfils outbreak,
advisingESG
outperformed
the investment
Estonian government
by 5 to 10uptake
percentage points in
blockchain for applications in intellectual align with EU environmental goals. “You have firm Wachtell Lipton. Dechert is now working on ways to tweak

larger rivals with bold and sustainability

a legal
programmepartner at Ashurst.
with technology
intelligence
“The work
company IBM;
promote vaccination
thecompile
US and guidelines
Europe. Companies
and helping to
with lowerofESG
on the distribution
require legal compliance, to
property protection. to report on the proportion of your business
that relates to taxonomy-eligible activities at
Entire countries can be held to account, as
well. Litigation firm Hausfeld worked with the
antitrust provisions to help businesses
collaborate on climate change initiatives. “The
Most innovative law firms in Europe
2021: The ranking showing the “most
entrepreneurial projects, that weaare
and doing with
knowledge clients — building
management ESG that
application scores suffered
medical biggerDigital
resources. drops in their earnings
expertise proved those
NGL Legal that drive performance first and, in later years, on what is taxonomy charity Save the Children to intervene in the need is clear for explicit guidance on what is innovative law firm in Europe” and “most
clauses into their
standardises thecontracts so that they
firm’s knowledge, can it
making perinvaluable,
share. with Ellex lawyers drafting terms of Poland aligned,” explains Vanessa Havard-Williams, first climate change case before the European permissible,” the firm says. innovative law firm in Europe (non-UK)”
says Mary Ormerod easier to train junior lawyers. service for an occupational health provider’s Networked boutiques is based on each firm’s aggregated scores
app, assisting a medical centre to set up a digital After launching NGL Legal in 2018, rather than for its top six submissions plus the score
Aequo Dottir clinic to host remote appointments, and helping trying to expand the firm in the traditional way for the firm’s use of data and technology.
Ukraine Finland health tech start-up Certific to launch an — through new hires and acquisitions — Firms could make up to seven
Leading sustainability Lean designers application process for digital national managing partner Krzysztof Wiater founded submissions. Awards were given for the
The firm issued its first sustainability report in Winner
Case studies Helsinki is seen as the global centre of the legal immunity passports. tool is now NGLused by other
Symbio: law firms. Lawyers
a partnership between six represented Southern Water, which supplies the renewable energy market in Ukraine, agreements for Tesco, which mean that the top-ranked firm in Europe and the top-
May, pre-empting any regulatory requirements Hausfeld design movement, and Dottir is one of the law also helped data provider
independent lawStandard & Poor’sand eastern
firms in central the south-east of England, in negotiations including green hydrogen trading and UK supermarket now uses 100 per cent ranked firm headquartered in Europe
Sustainability and ESG
to do so in Ukraine. It includes a record of how Lawyers at the firm
firms leading thearewayleaders in globaldesign
in integrating Goksu Safi Isik to launchEurope.
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principles withandlegalthey have drawn
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shared between the Portsmouth Water. Southern Water funded through financing, licensing and regulatory distribution centres. The contracts enable
contributes to the community through pro Hausfeld’s
user is a expertise in children’s
core strategic principle rights.
at theThe
firm. It Building platforms climate agreement.
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clients to go wherever the development for a new reservoir and approval as well as advising on corporate renewable energy projects to secure Most innovative in-house legal teams in
bono work, and how it advises clients on firm
hasfiled a petition
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lean the UNprinciples,
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on how toand invest its $1bnare,
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and enabling the secured access to new clean water supplies operations of renewable projects. The firm is financing more easily. The firm also supports Europe 2021: Research focused on four
incorporating environmental, social and on lawyers
the Rights workof the Child onwith
iteratively behalf of Greta
clients in order to clients that include Istanbul Airport, Goksu Innovation
Safi firms Fund. to collaborate when needed. Firms in the to ease shortages in the south-east. also advising the Ukrainian government on a Tesco with its sustainability strategy, areas of a corporate legal department:
governance (ESG) standards into investment Thunberg, reach a legalthe environmental
solution morecampaigner,
quickly than they Isik identified a benefit in using digital network are running joint working groups for structure for tariffs and rewards to including the installation of solar panels and strategic and risk advice; legal
and operations. The firm’s chief innovation andwould
15 other young people
otherwise, building agedandeight to 17. as
improving platforms to manage cases. The firm has a Ashurst practices including banking and finance and Herbert Smith Freehills incentivise renewable energy production. advising companies in its supply chain. operations; people and skills; and
officer, Kristina Dziadevych, is pushing This
theyargued that They
go along. state failures
also work to from
tackledocuments separate technology business called Newmind Anna-Marie Slot, topics
special globalsuch
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as cannabis law. The firm is a founding member of the Net sustainability and ESG. The list of five
practitioners to work in new ways. These climate
that arechange violated the
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include introducing legal design principles to children.
modelItisalso helped the
particularly Save the
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start-up platform called Mecellum. This uses artificial sustainability group, which aims to embed
Wiersholm made up of law firms, which aims to help the Lawyers arranged the power purchase The firm began a programme, ESG selection based on each team’s
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and launching an alternative legal services team thehalffirstofclimate change
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financing the in Finland.analysis and introduced
project management, campaigners to and Ashurst’sMarket
due diligence works includes
focus advising Tritax Big emissions by 2050. The firm’s own aim is to ESG-related matters. It involved podcasts, on the sum of scores for all submissions
that has developed new solutions, such as a case European Court of Human Rights. government
documentbodies. So far,As
drafting. thewell
Dutch
as developing newBox, a logistics
Underproperty
managing specialist,
partneron the Goller, the
Morten reach net zero by 2030. HSF is developing training for clients and staff, and ranked in the report.
management tool for litigation. Ellex competition authority
products, has published
the additional newhas attracted
expertise first sterling
firmgreen bond issued by
has restructured a UK realgroups by
its practice software to track and manage its carbon roundtables for the London-based firm’s
Dechert
Estonia guidelines
moreand theto
talent UKthe
and Greece
firm will soon
and helped it find aestate investment
market sector trust and
ratherworking with practice
than legal emissions. The firm also supports the senior leaders. Due to Linklaters’ expertise in RSGi: Formerly RSG Consulting, RSGi has
Antas da Cunha Ecija & Associados Since 2018,
Digital Dechert has been part of a lobby
movers followniche
suit. in developing Turkish language AI for Lundin Energy, a Swedish
expertise. Lawyers oil are
andtrained
gas group,
in mapping out Earthshot Prize, an awards programme for areas such as carbon offsetting, the firm was a record of devising ranking
Portugal pressing for changes
Ellex lawyers haveinseen competition
the benefits lawofthat
thinking legal tech. on refinancing with a $5bn
legal processes andESG-linked
using agileloan.
methodology to initiatives that help the environment. made the sustainability specialist on the methodologies for professional services
Intelligent knowhow willdigitally
allow sustainability initiatives
in their practice, fromto go
using Latham & Watkins Ashurst has also launched
innovate ESG Ready,
more quickly which— such as in
on projects global law firm panel of Nestlé, the food and firms. RSGi researchers on this report
Under the leadership of partner Nuno da Silva ahead, such asto
technology ensuring
simplifyfarmworkers
case management receiveto The firm’sLCAESG taskLegale
Studio force worked with provides latest
creating information
a new contracton regulations.
automation tool in Integrites beverage company. were: Reena SenGupta, Yasmin Lambert,
Vieira, the firm has created a legal intelligence a living
reachingwage. This has
clients involved
via social mediaworking
for a class Anthesis, Italya global sustainability consultancy, collaboration with media client, Schibsted. The The 12 partner firm has pivoted to focus on Researched, compiled and ranked by RSGi. Mary Ormerod, Tom Saunders, Esther
department that experiments with offering with the Fair
action case.Trade Advocacy
Partner Ants NõmperOffice, based
led a on RiskDesign
Horizon, a due
at the core diligence tool that Addleshaw Goddard
business development and client development the “green transition” of its energy, mining ‘Winner’ indicates the organisation won an Osibodu, Andrew Popov and Anne-Marie
technological solutions to challenges faced by in Brussels,
comprehensive and talking to European
response to challenges that screens potential
Partner anddeals
serialfor ESG risks.
innovator The Imperiale
Marco The infrastructure
functionsand have energy lawyers to help the firm
been expanded and steel clients. It is working to kickstart FT Innovative Lawyers 2021 award Grigorescu.
lawyers. Projects include: the exploration of have arisen from the pandemic, such as led the creation of a legal design practice at the build deeper relationships with clients.
328| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FINANCIAL TIMES
FINANCIAL Friday
TIMES 15 October
Friday 2021
15 October 2021 FTReports
FTReports| |933

FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe FT
FTInnovative
InnovativeLawyers
LawyersEurope
Europe

Lawyers’ eyeFirms
for turn
The Big Issue: HSF helped widen access to
more investors
Andrew Harker/Shutterstock
Five trailblazing sustainability leaders
ity of financial markets demands broad legal

detail will tackle

to embrace
skills, says Anna-Marie Slot, global ESG and sus-
tainability partner at Ashurst. Ingrid Gubbay Europe with the Association for
“It’s one thing to have a green bond — but then Of Counsel, Hausfeld Financial Markets in Europe,
you need derivatives that follow on from that, Before moving to the UK, the London-based banking
investor interest, liquidity in the after-market, Ingrid Gubbay worked as a trade body. Slot has also

greenwashing change makers

and the whole system needs to be transparent,” senior lawyer for Legal Aid helped develop products to
Contributors she says. “Lawyers can bring to the table differ- NSW, Australia, where she educate Ashurst’s clients,
ent approaches learnt from different businesses brought group action cases including ESG Ready, a
Kate Beioley at different times.” against companies and the Karyn Harty digital resource on European
Legal correspondent As fears over greenwashing increase, how- government. In the UK, she Partner regulation of sustainability in
ever, so does the demand for sustainable became principal legal adviserMcCann for FitzGerald financial disclosure. In addition,
Emma Jacobs finance to be better defined and subject to Which?, the non-profit consumer rights she played a role in setting out Ashurst’s

S
Work and careers writer robust measurement and reporting. The legal organisation. In 2007, she joined As aHausfeld,
commercial disputes
2023 sustainability goals, which include a
everal of the people on this list ideas from outside the law, and gaining trust sector is moving swiftly into this new area. which specialises in litigation,lawyer,
and now Karyn Harty 20hasper cent reduction in carbon emissions
Jane Croft have won support from their law by building relationships and empowering One example is voluntary carbon markets. As carved out a nichefrom
heads its human rights and environmental in Ireland
travel (the firm declared it was
Law courts correspondent firms for instituting radical people across the firm. more companies offset their emissions with the teams. Two years ago, she by encouraging greater use carbon neutral in January 2020).
Sustainable finance Law
Maija Palmer
an investment platform created
Pinsent Masons. “Lawyers aredegree,
change,
in a good
bydespite
law firm
place
writes
their lack of a law
to Ormerod.
Mary
Caroline Firstbrook, winner of an FT
Innovative Lawyers “change maker” award,
use of carbon credits — generated by activities
such as tree planting — critics have highlighted
represented a group of 15 young
people, including Swedish
of technology in the law.
In 2015, she received Adrian Walker
firms can use their expertise
Innovation editor, Sifted use the tools availableEven to amake sure things
practising lawyerdon’tcan struggle to did just this, and gained backing for policies the lack of standards and verification. activist Greta Thunberg, approval from the Irish Partner, Hogan Lovells
to test the veracity of ESG
Philip Georgiadis
go wrong.” convince their business that it should
Initially, rapid growth in the sustainable
change, especially if it is profitable.
by demonstrating to partners how a more
commercial mindset could yield immediate
Lawyers can help to provide an assurance
that such offset projects do contribute to emis-
which brought a petition to courts for the country’s first technology-assisted
the UN Committee on the review, when lawyers had to review
In 2008, Adrian Walker
1.8m documents
anticipated
document
the trend forfor
a
claims, writes Sarah Murray
Acting transport correspondent finance market calledChange for legal expertise
makers on the
say they have to find a and long-term results. sions reduction. Part of this will mean the crea- Rights of the Child to case (Irish Bank Resolution Corporation law firms v Quinn).
to haveAs the first
purpose
structuring of financial
balance products.
betweenItsetting gave Cad- themselves apart Profiles compiled by RSGi researchers and FT tion of a clear definition of an offset from a legal demand action on climate use of the technique in the Irish courts, it waswhencontroversial
he helpedas

R
statements
Patrick Temple-West walader, Wickersham through& Taft, for instance,
innovation groups theor bringing in editors perspective, says Ingrid York, a partner with change. Gubbay champions many Irish firms had large, profitable to launch manual
Hogan review teams.
Lovells’s
Governance ising demand for sustainable finance opportunity to work on a pioneering ESG collat-
reporter White & Case in London. the role of lawyers in tackling Harty founded and leads the legal-technology
projects practice withsolutions
the
means the work of lawyers now eralised loan obligation (CLO) on behalf of its “How do we treat it? Is it a set of contractual global warming. She chaired the division at McCann Fitzgerald. sloganThis involvesequality
“improving implementing
of access
Natalie Aranges Carterfrom structuring green bonds client, MUFG Securities Emea, part of Mitsubi- rights, a physical asset, or something else, and London Climate Change Litigation the firm’s digital strategy
forums, and supporting
to sustainable colleagues
infrastructure in
and energy”.
Law firm to helping
senior to draft environmental shi UFJ Financial Group, the Japanese lender.
associate how do we transfer it? Those kinds of things which were held to coincide with finding
the new ways of Hedelivering
also took legal
part inservices.
the launch of an MBA-
legislation. But, as billions of dollars While ESG language is already included in the excite us as lawyers and get us out of bed,” says negotiation of the Paris Climate style business skills course for social
pour
SarahintoMurray
environmental, social and governance eligibility criteria of Winner
some CLOs, this one was York, who is part of the Taskforce on Scaling Agreement in 2015. enterprises run by HL BaSE, the business
(ESG) investments,
Freelance journalistthe legal sector has another structured so that the statusFirstbrook
Caroline of each asset in the Voluntary Carbon Markets, a private sector-led enterprise practice at the firm. In
role: to tackle so-called greenwashing. CLO was assessed Chief beforeoperating
it was acquired officer and Eileen Burnsrecommendations
initiative that is developing Nicolas Jean Ben McGuire 2021, Walker was made head of
The
Reena absence
SenGupta, of standard measurement
Yasmin Lambert, Mary and will be subject to due diligence
Clifford Chance throughout the Such broader access has so far been curbed by vides an app to enable them to track their effect sure ESG funds are effective is to empower fund for better transparency Chief digital officer
and verification. Partner, Gide Loyrette NouelManaging director ESG and in that role he
reporting
Ormerodmetrics for ESG investments means life of the deal. the cost of the complex due diligence demanded via live updates, stories, videos and images. managers. This drove Pinsent Masons to create Regulation willArthur
also beCox
essential in combating French lawyer Nicolas Jean Simmons & Simmons advises governments and
that
RSGi companies and funds can make claims “[The CLO] actually lookedaninto
Originally engineer and then abystrategic
the underly- ESG products and funds, and the high From implementing data protection to draw- Datalis, an investment fund platform that pro- greenwashing. Lawyers can provide input to is an adviser in financial Solutions financial institutions on
about their social or environmental impact that ing borrowers, the companies consultant,and theirFirstbrook
Caroline loans, to joinedamounts required as a minimum to invest. ing up agreements for partner relationships, the vides data and automated reporting on sustain- policymakers during Previously a consultant
consultation periodsat and markets in countries projects connected with
areHarriet
exaggerated,
Arnold,or Amygreenwashed.
Bell Fortunately find out what they’re all about,”
Clifford Chance says asClaire
its chiefPud-operating To break down these barriers, lawyers at Her- HSF team ensured the platform could operate able investment opportunities. explain what theAccenture,
new rulesEileenmeanBurnsfor clients. including Ivory Coast, Benin Fifteen years in the British sustainability, which have
forCommissioning
lawyers, bringing clarity to ambiguity is a dicombe, a partner
editors at the
officer sixUSyears firm’sago. London bert Smith
She set an agenda for Freehills worked with The Big Issue smoothly. “Datalis is helping to educate those fund man- With their eye forjoined detail,Arthur Coxbe
they will in able
2018.to see and Senegal. Inspired by army gave Ben McGuire the included the Met Office’s
fundamental skill. office. radical change and now leads the— the campaigning organisation behind the “We were advising on governance and set-up agers around what their funds should look like, potential problems Since then,
during theshe has process.
drafting French President Emmanuel ability to help people make acquisition of a
“There
Cat O’Neil is a massive amount of capital being As well as preventing
business greenwashing
professionals, through street magazine
or “non-lawyers”, at sold by homeless people — on structures, on key foundational and constitu- in order to attract as much capital as possible “One extra word launched
can changea consulting arm, of
the meaning Macron’s call in 2020 for debtchanges. In his role as supercomputer powered by
putIllustrator
into sustainable finance, which clearly financial innovation, theanother
global firm,priority
including those initsfinance
for pro- 2018 launch of the Big Exchange, a block- tional documents,” says Lucy Curran, a London from those interested in sustainable finance an entire clause,” implemented a new digital“It is
says Puddicombe. relief in Africa, Jean called oninnovation
his chief at the firmrenewable energy. He is on the
poses the risk that people will claim to be invest- ponents of sustainable and human is to make ESG chain-based ESG investment platform.
financeresources. associate at the firm. “And we did a lot of work and impact,” says Warner. important when strategy and initiated
we’re reviewing a
legislation to over the past five World
contacts in institutions and governments years, he Economic Forum’s social impact
ingSteven
on a greenBird basis when they are not,” says Ian products available to One a broader
of her set firstoftasks
investors, The platform gives investors access to ESG around financial services regulation.”
was to strengthen Whether developing investment platforms or make sure that itdigital reflectstransformation programme at the firm.
regulators’ intention across the continent. This resulted has convinced
in a partnership
thecouncil and istoa invest
member in experimentation.
of the sustainable
Warner,
Designer an investment funds partner at Datalis, including impact-driven retail investors.
the commercial discipline that she had rated
funds seen for their type and impact and pro- Another way to expand the market and make sustainable investment products, the complex- but also can be implemented So far, Arthur
by theCox has rolled out new ediscovery
market.” think-tank, services Solutions, the firm’s
sponsored by Gide Loyrette financeinnovation
group ofgroup, includesservices
the financial ediscovery
in her previous workplaces, including as well as a platform that responds to dataNouel, subject access
which advises on strategies for legal engineering
services, body (with Wavelength,
TheCityUK, lookingthe legal
at the
Esan Swan Accenture, the business consultancy. requests. ACScribe, the firm’s document automation system,development
financing African services business it recently future acquired) roleand tech product
of offices in cities.
Picture editor This was not an easy task: law partnerships are often more tolerant of idiosyncratic dramatically cuts the time that lawyers need to create
without draftsunsustainable
creating development. McGuire worked with the firm’s legal
behaviour among fee earners. When Firstbrook showed Clifford Chance’s bosses that new of contracts. Thanks to Burns’ new approach, thedebt.
public As a practitioner,practitioners to develop new revenue-generating
associate Ingrid York services,
Case studies
For advertising details, contact:
Alex Roszkowski, +44 (0) 7481 606760,
asset owners improvemeasures
reporting regularly towere
their ESGsuch
investors
score
on ESG
convinced.
asandrecording billable work within 48 hours could save up to $65m
The firm has reported a 60 per cent increase in profitabilitycreate
baseda Tramontana
year, they asset managers to
a programme in which investors can
since Firstbrook
managers with fundraising trends and best
practice. In the past year, the firm estimates suppliers, whereby
appraisal
template for financing
approved
customers
system now includes credit for time
product-as-a-service
digital
Jeanspent
projects as part of their billable
purchase creativehours
on
has advised
financing
on many including a tool that assesses trademark
and another that helps cross-border
Partner,infringement
White & Caserisk,
dataposition
In her transfer.inThe group
the firm’s
Sustainable finance
alex.roszkowski@ft.com, or your usual FT performance. joined. Her next plan for billable hours is to get rid of them from legal services. buy EU-issued carbon certificates, which are its work has generated $2bn for impact targets.remains the owner
access but the supplier structures, including the first reported £18m turnover last year. capital markets practice,
representative. required to secure carbon credits. investment funds. of the goods and is responsible for corporate green bond in York has been involved in
Gide Loyrette Nouel Companies need these certificates that maintenance and recycling. This presents francophone west and central several firsts in sustainable
Lawyers
All editorial helped clients
content navigate
in this report is produced by Partner Nicolas Jean led the creation of a permit carbon emissions and must purchase Travers Smith more complex risks than other investments. Africa. finance. In 2017, she was an
increasingly
the sophisticated
FT. Our advertisers haveofferings.
no influence over orthink-tank to discussBen sustainable
Allgrove moreBarron
Mark if they exceed their yearly limits. By Gerrit Beckhaus
Lawyers helped Pay.UK, which operates the The lawyers alsoMatthew
created aDoughty
help desk to Chris Tart-Roberts adviser to Crédit Agricole’s
prior sight of the articles. All FT Reports are approaches to financing Partnerand debt in African using a special purpose vehicle, Tramontana
Partner PartnerUK’s retail payment operations, to draft a support the bank’sGroup chiefin reviewing
lawyers Anna-Marie Slot Chief knowledge andcorporate and investment banking arm
Winnerat: ft.com/reports
available countries. The groupBaker— which includes
McKenzie has enabled
Taylor Wessingthese certificates to be traded Freshfields
legalBruckhaus
framework for Request-to-Pay. This is operating
product-as-a-service officer
contracts. The long- Partner, Ashurst innovation officeron its $3bn green capital note, which
Cadwalader, Wickersham & Taft ministers from Ivory Coast, Benin, Republic as assets by retail investors. In the long Deringeran alternative payment mechanism to direct DWF a circular economy.
term goal is to promote In 2019, Anna-Marie Slot moved Macfarlanes
from Hong combines synthetic securitisation with
The lawyers assisted the Europe, Middle of Togo and Senegal,Ben along with who leads
Allgrove, term,Barron
Mark it mayhasincrease
spent the
20 value of the debits, as consumers are sent requests for a Kong to London and was appointed investment goals aligned to the UN’s
East and Africa arm of Mitsubishi UFJ economists, leaders of financialthe
Reinvent, institutions
innovation social impact funds starting with a minimum years certificates
helpinguntil it is cheaper
to provide the for companies Gerrit Beckhaus
paymentisbyfounder
a biller rather than payments Hogan Lovells The Covid pandemic hit Ashurst’s first global partner Chrisfor Tart-Roberts sustainable development goals.
Financial Group in developing the first and lawyers — has provided
arm of Baker pro bono McKenzie, of £25. The lawyers constructed the legal to invest
vision that inhasreducing
led to histheir carbon emissions. of Freshfields’
going outassociate
directly from their accounts. DWF hard
The firm’s sustainable in the
finance andfinal
investing environmental, social and established the firm’s legal Two years later, she helped to
Collaborative
European Innovation
collateralised loan obligationaward advice to African states hasnegotiating
recently taken withon the framework, including designing a system for firm being recognised as a innovation programme,
Mastercard has used this framework to group developedquarter
a toolkitofto
itssupport
financialclients
year, governance (ESG) and technology team in 2016, put in place creative legal
(CLO) that will consider environmental, creditors. It will also publish a white
title of chief paper
innovation vetting funds to measure their impact and Pinsent
leader Masons He
in technology. which seconds
launch aassociate
request-to-pay app for its to April 2020,
in lending and borrowing, with which
a focusledonto sustainability. As a developing it into a fee- solutions that enabled a
CO-ORDINATED
social and governance (ESG) factors across offering recommendationsofficer.to governments avoid any greenwashed products. They also was Thetheimpact investment
founding partner team
of works with lawyers customers
to clients, and
and tasks
a number of financial twoincludes
sustainability. This profit warnings
an initialand a
review practitioner, she was earning practice area that notes issuance by Société
allACTION
its investments. Some CLOs include and financial institutions Heon wherehis time
divides protected the mission of the platform with itsclients
Siliconthat areoffice,
Valley designing social and them with finding better
institutions in the UK and Europe are also fall in the share
of the client’s sustainability price.
policies, training involved in many of the earlydeals directly with clients. Générale, the French bank,
The FTinhas
language their eligibility criteria to investment can havebetween
a genuinelegal impact.practice, where “golden
he is anshares”
expert—ingiving
digitalThe Big Issue
media environmental
winning impact
clients and thenfunds,
making such
goodas use
the of what he learnt ways to using
deliverthe
legal services.Benefits
framework. He launched Freshfields Lab
include on in
various risks andAtbenefits
this point, Sir Nigel Knowles took overgreen
of sustainable as chief
bonds executive
issued in Asia- The 20-strong team comes fromfor a variety of disciplines
a risk transfer worth
launched
restrict a new
the types of loans that can be and technology, and drivingspecial rightsadoption
technology compared with other
from ongovernment
his return toand privateapplying
London: sector-backed
the innovative approach of 2019, which he now
greater runs alongside
flexibility and control associate Lukas Treichl.
for consumers, and Matthew
finance, and guiding Doughty
clients through thewas appointed as the firm’sInfirst
Pacific. her chief
new role, she including data science, product development $3.4bn allocated and legal
for impact
Innovative
included to those with certain ESG scores. Herbert Smith Freehills contract review tools and ediscovery shareholders. Impact
to more fromedge
cutting the investment Cleanstart-up
a tech Growthto Fund. This
Taylor invests inculture
Wessing’s clean and operations. The firm’s
andinnovation
a reduction arm
in aims
failedtodirect
develop tech-based process of introducing
debit operating officer. Doughty developed a 100-day
sustainability-linked helps toturnround
develop industry practice. investment.
ForLawyers
this CLO,award,
however, the lawyers created a The firm helped The projects.
Big Issue — the funds is recorded on a blockchain platform. tech
Barronbrands,
set upincluding
a team of Piclo, a smart energy
50 “innovation ambassadors” solutionspayments.
to client problems. Among more than 30 such loans that incentivise plan, focusing
borrowersontocombining
achieve core legal advice with access
standards to Services offered by the team include
for sustainability-linked Last year,Vantage,
York was which uses
framework
celebrating to test the ESG compliance of organisation behind theOne street magazine
example is a collaboration with SparkBeyond, a company,
across andand
the firm Everyone In, a fund
introduced to tackle
the ideas of design thinking. solutions are a simulation tool that quantifies exposure in ESG targets. its Mindcrest and Connected Services offerings: finance.allShe
three are
supports AI and data analysis toolsappointed
the non-profit to ease the totransition
a task force byfounded
financial
thecollaboration
assets regularly onthroughout the deal sold by homeless people — to in
specialist launch
usingan Linklaters and
artificial intelligence Walkers
to solve Ireland
problems. Thehomelessness. The lawyersClosing
team has implemented developed
Folders, a transaction mass claims and a notification platform for data breaches.
NautaDutilh now offered
Researched, compiled to clients
and ranked as a single service. Climate Bonds Initiative in advising
by RSGi. institutions from London
capital by Markinterbank
Carney, formerofferedgovernor
rate (Libor), and
of the
lifetime. The firm also worked
legal challenges. More at: ft.com/ closely with investment platform, The
Baker Big Exchange,
McKenzie employs Walkers
this acted
technology as
to Irish
predictcounsel
the and Datalis,
management a platform that
platform, gathers
and an apphistoric
called data
Eureka, which is These solutions
Working combine off-the-shelf
with the bank ABN Amro products
in the with the‘Winner’ indicates theDoughty’s effortswon
organisation contributed
an to an improvement in group
markets clients Bastion,
and creating the a suite of Bank
first ESG tools ofaimed at family
England, whichoffices that combines
promotes
collateral manager
innovative-lawyers NIBC Bank in helping which enables people to
volume invest
of in ESG
mergers and
and Linklaters
acquisitions andas English
help findin helping
new London-
clients. on
used investment
to organise to help
new inexperienced
ideas. Out of 50 fund
such ideas generated firm’s proprietary
Netherlands, technology. The team
the firm created ensures the
a contract revenues
FT Innovative Lawyers 2021and a rising share price, as well asguidelines
award bringing for newthe high-yield markets
contractin management, data carbon
voluntary analytics and project
markets.
So far, the pilot projects have been a success. in its first four months, eight have become projects. proprietary components are replicable and scaleable. clients to the firm. management.
FINANCIAL TIMES Friday 15 October 2021
Amazon: ‘We wanted to help’
In-house Lawyers tackled
legal and data privacy issues
to deliver Covid test kits in
the UK, says Yasmin Lambert
I
n early 2020, as the Covid-19 pandemic
took hold in the UK, the government
approached the private sector to help with
its national response. Amazon UK agreed
to use its logistics expertise and network to
boost testing capacity by delivering test kits to
workers in the NHS and other key workers.
“Amazon is a retailer, but its UK team had
never been involved in a project quite like this,”
says Alex Simpson, UK legal director at
Amazon. “Although we hadn’t done that before,
we very much wanted to help.
Amazon UK’s existing agreements were unfit
for this type of service. Lawyers had to re-
engineer contracts and existing frameworks,
and engage with the data privacy regulator, the
Information Commissioner’s Office, and
standards bodies to create a new model. Their
quick work meant the service was running by
March 26 2020, just days after it was proposed.
Amazon decided not to charge for the
service through which it delivered more than
7m test kits to the homes of essential workers
and the public.
Simpson says: “It would have been very easy
for any one of the team at any moment to say
FT Innovative Lawyers Europe
‘Amazon hasn’t done this before, I think it’s too
risky’, yet no one did. The drive, determination,
innovation and creativity was immense.”
Amazon UK’s lawyers are therefore named
the most innovative in-house legal team in the
Europe FT Innovative Lawyers awards for 2021.
They tackled unfamiliar legal and data privacy
issues to deliver the Covid testing distribution
project and to set up in-house labs for testing
Amazon employees. The team also supported
the business through a period of extraordinary
growth and new ventures, including the launch
of physical stores.
After the disruption of the pandemic, all
companies face further upheaval. And the
submissions to the various award categories,
showcased on the following pages, look at
longer-term changes under way among in-
house legal teams: advances in legal operations;
renewed focus on people and skills; and the
expanding influence of lawyers on the
sustainability and environment, social and
governance agenda.
In the realm of legal operations, automation
technologies and data analytics are
transforming areas of legal work, such as how
contracts are drafted and managed. Bayer, the
German life sciences company, has shifted its
entire contracting team to shared services
centres, where they manage a tech-led process
from initial request through the lifecycle to
filing, managing and reporting. The legal team
handled more than 15,000 new contract
requests in the first nine months of 2021.
Most innovative
in-house legal teams
Europe 2021
Winner
Amazon UK*
Archer-Daniels-Midland (EMEAI)
Axa
Bayer
Vodafone
*Winner of the FT Innovative Lawyers
award for ‘Most innovative in-house legal
team in Europe’; other organisations are
listed alphabetically
For the teams at BNP Paribas bank and
fintech Revolut, new risk management
technologies are collecting and analysing rich
data to help lawyers better advise their
businesses. In the financial services industry,
being able to communicate in the same
language as the business and back advice up
with statistics, is also valuable.
In-house legal teams are recruiting more
data, technology and process experts as they
become more digital, but lawyers also need to
FTReports | 35
Illustration: Cat O’Neil
expand their skills. “During the pandemic there
has been [an evolution in] what being a
business partner means for in-house lawyers,”
says Oliver Searle, lead counsel at Chevron, the
oil company. “Knowing the business is a given.
You also need to understand the basics of
process improvement, project management,
and data collection.”
Looking further ahead, how in-house lawyers
will manage risks associated with climate
change and greenwashing misstatements about
eco-friendly policies is rising up the agenda.
Nestlé has a team of five sustainability lawyers
with expertise in climate change, sustainable
sourcing, and human rights. Counter to the
instincts of many in-house lawyers, they are
seeking more regulation. They are working on
promoting recycling regulations and standards
for assessing carbon offsets and claims about
carbon neutrality.
Many individual lawyers — such as Nestlé’s
general counsel for sustainability, Esteban
Mezzano — have been drawn to sustainability
roles through personal conviction. But, as with
data and tech skills, expertise in these roles is
expected to become a core competency for in-
house lawyers in the coming years.
RESEARCH AND AWARD SUPPORTED BY
FINANCIAL TIMES Friday 15 October 2021
Case studies Sustainability and ESG
Winner
Axa
The Axa legal team worked with a
consortium of eight insurers that launched
the Net-Zero Insurance Alliance, chaired by
AXA Group chief risk officer Renaud Guidée.
Many insurance companies have chosen to
divest from fossil fuels and are now
pushing for change in the
businesses they underwrite. The
alliance – an initiative by the UN
Environment Programme – has
developed a common
methodology and performance
indicators for underwriting
portfolios, which will help insurers
speed up moves towards net-zero
carbon targets. The Axa legal team
played a critical role in setting up the alliance
by working through complex antitrust issues
that cleared the way for the competing
companies to collaborate.
EIT Climate-KIC
The need to drive innovation to fight climate
change led to the foundation of the Climate
Knowledge and Innovation Community. The
aim of the project, supported by the
European Institute of Innovation and
Technology, an EU agency, is to bring
together business and academia. The KIC
was formed as a private company but has
become a non-profit foundation. This type of
deal had no precedent. The change has
been handled by Anna White,
general counsel of Climate-KIC.
The organisation’s public
mission is now clearer and it is
able to access new funding.
Investec Bank
Funds lawyers at Investec helped
create a new type of ESG-linked
credit facility for Investindustrial, the
European private equity house. They defined
sustainability measurements that, if met by
Investindustrial, will reduce the interest rate
paid on the loan.
These sustainability goals, targets and
reporting measurements create a standard
that can be used as an incentive for other
FTReports | 37
FT Innovative Lawyers Europe
Case studies People and skills
Winner initiative to positively influence mental
Aviva UK health and wellbeing in the wider legal
Lawyers at the insurer have helped to launch industry. It outlines specific expectations and
several initiatives in the past 18 months. practices the team should follow in areas
They advised on the development of a that include working hours, timelines,
mental health toolkit that has been shared respecting commitments outside work, and
with corporate customers of Aviva’s health communications etiquette. The team now
business. In addition to defining legal issues applies the principles to how it instructs and
around consent and data, lawyers communicates with outside lawyers.
ensured the toolkit can be used
by a range of corporate Amazon UK
customers and by Aviva The legal team worked fast
internally. to advise on data privacy
Project Edge, a training and other legal and
and development regulatory requirements to
programme, has also enable the company to
equipped legal staff to play a open its own Covid testing
more strategic role in the facility in the UK, in the early
business. Under a new social
mobility strategy, the team is
stages of the pandemic. The
facility provided tests to thousands
providing internships and mentoring to of employees. The model was followed by
sustainable investments in the private equity help make legal careers more accessible. Amazon operations in Europe and the US.
industry. Researched, compiled and ranked by RSGi.
Shell ‘Winner’ indicates the organisation won an
Sonnedix Shell has developed the “We Care” principles FT Innovative Lawyers 2021 award
A sustainability academy set up by Sonnedix,
a solar power company, provides resources
and site visits to schools and universities. It is
on track to reach 100,000 people in
education with its message about
renewable energy and climate
change. The Sonnedix legal
team is responsible for ESG
issues at the group and it led in
the creation of the academy,
which aims to give new
generations the skills they will
require to enable growth and
innovation.
Nestlé
A team of five sustainability lawyers and 150
sustainability ambassadors from the global
legal team at Nestlé have helped to produce
new waste regulations and better standards
for packaging. They defined a concept of
“plastic neutrality” and recently used it to
promote the development of recycling
infrastructure in Colombia. They are also
involved in a cross-industry group that is
setting standards for how carbon offsets are
calculated.
CNIL with Amurabi
CNIL, the French data protection
commission, worked with Amurabi, a
legal design agency, to improve
how young people engage with
privacy policies and ensure
that they know their data
rights on the internet. They set
up focus groups and “co-
creation” sessions, which led to
the development of better
interface designs. These discourage
the “blind clicking” of on-screen agreements
by motivating users to read and then to
make an informed decision about their
rights.
Researched, compiled and ranked by RSGi.
‘Winner’ indicates the organisation won an
FT Innovative Lawyers 2021 award
38 | FTReports FINANCIAL TIMES Friday 15 October 2021

FT Innovative Lawyers Europe

Case studies Société Générale Forge

Strategic and risk advice
Winner
Gavi, the Vaccine Alliance
The legal team of the public-private global
health partnership played a leading role in the
launch of Covax, the vaccine-sharing initiative
back by the World Health Organization. Its
200 member countries have agreed to share
resources for research, development and
distribution of Covid-19 vaccines to ensure
more equitable access globally. Lawyers
negotiated different agreements with high-
and low-income countries, humanitarian
partners, development banks and pharma
companies. They created new legal, financial
and insurance mechanisms to manage risks,
which were critical to securing the
participation of countries receiving the
vaccines — and from the vaccine makers.
easyJet
The airline’s legal team helped guide the
company through a tumultuous 18 months,
which included Covid-19 travel restrictions, a
cyber attack, and a dispute with the
company’s founder as he attempted to remove
its chief executive and chair. Critically, lawyers
helped restructure the company and raise
£5.5bn through a series of transactions.
Amazon UK
Lawyers led on setting the strategy and
moving quickly to create supply agreements
to source and distribute more than 7m Covid
test kits to the homes of essential workers
and the public in the UK. Under the
agreement with the UK government, Amazon
offered its logistic networks and expertise free
of charge.
Mercedes-AMG Petronas Formula One Team
Lawyers devised an intellectual property
model to enable the F1 team to launch its
Applied Science business. The division
provides engineering and design consulting to
clients, which include other professional sports
teams such as the Ineos Team UK America’s
Cup sailing team.
European Investment Fund
After Brexit, the fund’s lawyers designed and
drafted new legislation to establish
professional payment guarantees as a
financial instrument in Luxembourg. Lawyers
selected the jurisdiction and lobbied to
introduce the new law. This allowed the fund
to move all its debt documentation from
English to Luxembourg law, and sign €10bn in
new guarantees.
Galp Energia
Over two years, the legal team of the
Portuguese oil and gas group led almost 180
transactions, involving thousands of plots of
land, to establish new solar power generation
facilities. The team created standardised
agreements and a risk assessment method to
manage the volume of deals. The projects are
helping the company shift towards clean
energy production.
A multidisciplinary team that combines
expertise in legal, regulatory, capital markets
and blockchain issues is pioneering new digital
financial products. It worked with the
European Investment Bank, the EU’s lending
arm, to issue its first digital bond on a public
blockchain, and on a subsequent transaction
to borrow back the bond via the blockchain.
BT Group
When the US placed restrictions on 5G
communications technology made by China’s
Huawei, lawyers in BT Technology helped plan
for a range of outcomes as the UK decided the
terms of its own ban. It is now managing
agreements with landlords to swap equipment
at 19,000 network sites over the next seven
years, and negotiating new supply and
engineering contracts.
Vodafone
In-house lawyers worked on the corporate and
financing structure for a deal in which
Vodafone UK and Telefónica UK turned their
telecoms tower joint venture, Cornerstone
Telecommunications Infrastructure, into a new
independent company. The structures and
agreements ensure Vodafone’s long-term
access to essential infrastructure.
Revolut
Lawyers created a tool, the Contract Risk
Quantifier, to evaluate the fintech’s commercial
contracts. It has helped to ensure more
consistency in new contracts, and to monitor
and improve current agreements.
Researched, compiled and ranked by RSGi.
‘Winner’ indicates the organisation won an FT
Innovative Lawyers 2021 award

Case studies Legal operations

Winner
Bayer
Legal operations at the German life
sciences company have been
transformed over the past two years
by centralising, streamlining and
digitising its contracting, data
privacy and compliance activities.
These are now managed by
specialised teams that sit in the
company’s shared services centres
and draw on a more diverse range of
people and skills.
The contracting team has
automated the end-to-end process
for more than 50 contract types in
many languages, which has allowed
business colleagues to create
thousands of contracts quickly
and easily. The team can
automatically track
obligations and mine
data for new insights,
thanks to a fully digital
contracting process.
BNP Paribas
In the latest version of Sara,
an online risk-reporting tool created
for the bank’s global legal team,
lawyers have new dashboards and a
risk taxonomy and scoring grid. The
app is also used to shape the bank’s
onboarding process for new law
firms. The tool tracks and
automatically alerts team members
if panel law firms’ arrangements are
being breached.
Vodafone
The UK legal team at the British
telecommunications company has
continued to develop its contracting
technology, and one of the benefits
is that the sales team can generate
their own contracts. An artificial
intelligence function enables
the sales team to access
contract data to help
them manage customer
relationships better
and to note trends in
its customer base.
Archer-Daniels-Midland
The ADM legal team for
Europe, Middle East, Africa and India
led and project-managed the legal
aspects of setting up a blockchain
joint venture involving the world’s
six largest agricultural companies.
The Covantis blockchain platform
digitises and tracks global
agricultural shipping, and replaces a
century-old paper-based process.
Lawyers used agile project
management to co-ordinate
multiple partners, legal and
technology team members. Their
navigation of the complex European
competition and regulatory
challenges was essential to making
the platform work.
Chevron
A digital advisory board is driving
digital transformation in the legal
department of the oil company by
introducing new tech tools and
shifting mindsets. The inclusion of
technology targets in performance
reviews and new training modules
are helping to drive cultural change.
The team used design thinking
techniques, which focus on
the user experience, to
create a visual and
clearly worded resource
for business colleagues
to manage brand
licensing projects.
Capgemini
The French IT services group set up
a global legal centre to connect
lawyers working in multiple offices
and countries. The result is a global
hub for lawyers in local teams to
share knowledge and expertise,
train new legal team members,
develop technology and legal
processes, and buy outside legal
services.
Carrefour
The French retail group’s Iberian
legal team automated all its supplier
contracts — enabling their business
colleagues to produce tens of
thousands of new contracts each
year, without involving lawyers. The
digital process ensures that
contracts are compliant,
which reduces risk and
saves time, allowing the
team to collect and
analyse new data on
supplies of different
products for its stores.
Crédit Agricole CIB
New technologies are streamlining
legal contracts and documents at
the investment arm of the French
bank, in order to improve how it
interacts with clients. Internally, the
legal team has connected systems
to analyse invoicing and legal task
information, allowing them to make
data-driven decisions about
allocating resources and where they
send legal work. The lawyers are
using robotic process automation on
about 20 routine tasks such as
checking law firm invoices for
compliance.
Researched, compiled and ranked
by RSGi. ‘Winner’ indicates the
organisation won an FT Innovative
Lawyers 2021 award