TUESDAY 18 OCTOBER 2022 INTERNATIONAL NEWSPAPER OF THE YEAR EUROPE

Coal country tests Biden’s green promise Ukraine needs diplomacy as much as arms
BIG READ, PAGE 17 GIDEON RACHMAN, PAGE 19

New UK chancellor rips up Truss’s Briefing

i Goldman shake-up aims

economic policy to soothe markets

to boost market valuation
The Wall Street bank is planning
to fold its crown jewel trading and
investment banking business into
one unit as it shrinks from four to
three divisions.— PAGE 6

3 Premier’s future on knife-edge 3 Tax cuts scrapped 3 Energy aid reined in 3 Investors reassured
GEORGE PARKER AND
CHRIS GILES — LONDON
Jeremy Hunt, the new UK finance min-
ister, took a wrecking ball to Liz Truss’s
economic policy yesterday, in a move
that reassured markets but left the
prime minister’s future hanging by a
thread.
Hunt scrapped two-thirds of the
£45bn of unfunded tax cuts announced
by predecessor Kwasi Kwarteng and
warned of “eye wateringly difficult”
decisions to come to balance the books.
While Hunt was rewriting Truss’s eco-
nomic strategy, the prime minister was
in meetings with senior MPs in her Con-
servative party trying to save her job, as
colleagues lined up to tell her she could
not survive the debacle.
In a sign that power is flowing away
from the premier, Hunt said he would
consider scrapping even more of Truss’s
policies, telling the House of Commons
that “economic stability” was now the
priority. He said he was “not opposed in
principle” to windfall taxes and refused
to rule out the possibility of ending the
“triple lock” which ensures inflation-
linked pension rises. “I’ve said nothing
is off the table,” he said.
Across Whitehall ministers and offi-
cials began trying to find savings from
stretched budgets, even though many
public services, including hospitals,
schools and courts, are already under
massive pressure.
Hunt’s reversal of most of Kwarteng’s
September 23 “mini” Budget saved
£32bn, but the chancellor will have to
make further big savings and raise taxes
further to fill a fiscal hole estimated at
about £70bn.
He scrapped a £6bn cut in the basic
rate of income tax, along with changes
to dividend taxes, taxes for freelances, a
VAT tax break for foreign shoppers and
a freeze on alcohol duty, saving £5bn.
Truss had already axed tax cuts for big
business and the wealthy, saving £21bn.
In another dramatic move, Hunt
announced that an “energy price guar-
antee” to households and business
would last only until April, rather than
for two years, as planned, and thereafter
The programme, which will cost
£60bn for the first six months, would be
redrawn so that it would cost “signifi-
cantly less”, while retaining help for
those most in need.
Rachel Reeves, finance spokesperson
for the opposition Labour party, said the
Conservative government was taking
‘No government can control
markets,’ says Jeremy Hunt.
Page 20 But markets can control
governments, eh Jeremy?
He is crowdsourcing his
Britain back to an era of austerity, say-
ing: “They have set fire to everything.”
The 30-year gilt yield tumbled 0.41
percentage points to 4.37 per cent,
reflecting higher prices as markets
reacted to Hunt’s seriousness about get-
ting debt under control.
But 30-year government borrowing
costs remain far above the 3.75 per cent
seen before last month’s debt-fuelled fis-
cal package sent markets into a tailspin
and triggered a liquidity crisis for UK
pension funds. Shorter-dated gilt yields
also fell sharply, while the pound gained
1.3 per cent against the dollar to trade at
$1.1314. Hunt insisted: “The UK will
always pay its way.”
spending cuts in a medium-term fiscal
plan on October 31, accompanied by
Office for Budget Responsibility fore-
casts. Truss’s future is far less certain.
The prime minister met Sir Graham
Brady, the chair of the backbench 1922
committee, in the afternoon to be told
about the scale of despair among Tory
MPs. She later met cabinet ministers in
Downing Street ahead of a formal cabi-
net meeting today, with her allies admit-
ting that the next 48 hours would be
critical in determining if she could ride
out the storm.
Gilts rally page 10
Day in markets page 11
FT View page 18
i Brussels gas price push
Officials have formulated “last
resort” measures to curb gas
prices as the EU seeks to ease the
bloc’s energy crisis. They are due
to be considered today.— PAGE 2
i Nigeria floods kill 600
Hundreds have died and more
than 1.3mn have been displaced
from their homes in a deluge that
has hit 33 of the country’s 36
states and capital Abuja.— PAGE 4
i Credit Suisse settlement
The Swiss bank has reached a
$495mn deal with US prosecutors
over a case relating to financial
crisis-era mortgage bonds, one of
a swath of legal disputes.— PAGE 8
i Tokyo to probe ‘Moonies’
Premier Fumio Kishida has called
for an investigation amid anger
over ties between politicians and
the group that were exposed by
Shinzo Abe’s murder.— PAGE 4
i West to buy banned site
Rapper Kanye West has agreed to
buy Parler, a would-be Twitter
rival, whose free speech stance
has resulted in bans from Apple
and Google services.— PAGE 6
Datawatch
Turkey warms to Russia
12-month rolling average
Jeremy Hunt, Coal imports Crude oil imports
with Liz Truss to (mn of tonnes) (’000 barrels per day)
his left, sets out 1.2 250
measures in the 1.0
200
Commons 0.8
yesterday that 0.6 150
overturned his 0.4
100
boss’s strategy 0.2
AFP photo / PRU 0 50
2019 20 21 22
Source: Kpler
Turkey has increased its purchase of
Russian energy, particularly oil and coal.
In September alone, it imported a record
2mn tonnes of coal. It has also taken
advantage of cheaper Russian oil by
doubling crude imports

would be more targeted. policy direction from them Hunt will set out more tax rises and Sarah O’Connor & Willem Buiter page 19

Beijing delays eagerly-awaited growth

data during Xi’s crucial party congress
THOMAS HALE — SHANGHAI highlight China’s continued economic party congress [in session] it could give
HUDSON LOCKETT
AND CHENG LENG — HONG KONG weaknesses, including a worsening a mixed message or incorrect signal to
EDWARD WHITE — SEOUL property crisis and the impact of strict markets and make things volatile.”
zero-Covid policies that this year locked In another announcement that ana-
China has delayed the release of eagerly down dozens of big cities, stifled con- lysts said looked to have been orches-
Investor hopes for rapid anticipated third-quarter economic sumption and in effect closed the coun- trated to coincide with the congress, the
data, including its gross domestic prod-
grocery apps punctured uct growth rate, which were due to be
try off from the rest of the world. biggest state-run banks said they had
Economists had forecast GDP growth increased lending 22 per cent to $1.3tn
Analysis i PAGE 10 issued in the middle of the 20th com- of 3.3 per cent year on year in the third in the first nine months of the year.
munist party conference. quarter, compared with a 5.5 per cent The Rmb9.53tn in new loans indi-
Neither an explanation for the post- full-year growth target that was already cated that state groups were being
Austria €4.30 Morocco Dh50
Bahrain Din1.8 Netherlands €4.30
ponement nor new dates were provided. the lowest in three decades. China directed to support China’s economy.
Belgium €4.30 Norway NKr45 The National Bureau of Statistics did not recorded anaemic growth of just 0.4 per Most of the new cash has been directed
Croatia Kn32/€4.25 Oman OR1.60 respond to a request for comment. cent year on year in the second quarter. towards Xi’s favoured industries,
Cyprus €4.00 Pakistan Rupee350
Czech Rep Kc120 Poland Zl 24
The latest figures were set to be pub- Iris Pang, greater China chief econo- including manufacturing, infrastruc-
Denmark DKr43 Portugal €4.00 lished today at a politically sensitive mist at ING, noted that delays of less ture, and technology and innovation.
Egypt E£59 Russia €5.00 time, with Chinese president Xi Jinping high-profile statistical releases, such as Four of the banks also disclosed at least
France €4.30 Serbia NewD530
Germany €4.30 Slovenia €4.00
expected to use the party congress to customs data, were more common in a 25 per cent boost in funding for “green
Greece €4.00 Spain €4.00 extend his powers for a third term and China and often pushed back to avoid loans”, or lending for clean energy
Hungary Ft1350 Switzerland SFr6.50 to outline the country’s overarching pol- clashes with big events. “It’s likely about projects, in the first three quarters.
India Rup220 Tunisia Din7.50
Italy €4.00 Turkey TL50
icy approach. the noise that could come from these ‘Great rejuvenation’ push page 3
Luxembourg €4.30 UAE Dh23 The economic data were expected to statistics,” she said. “With the 20th China state banks page 10
Malta €4.00

Subscribe In print and online World Markets

STOCK MARKETS CURRENCIES GOVERNMENT BONDS
www.ft.com/subscribetoday
email: fte.subs@ft.com Oct 17 Prev %chg Pair Oct 17 Prev Pair Oct 17 Prev Yield (%) Oct 17 Prev Chg
Tel: +44 20 7775 6000 S&P 500 3679.84 3583.07 2.70 $/€ 0.982 0.975 €/$ 1.019 1.025 US 2 yr 4.43 4.51 -0.08
Fax: +44 20 7873 3428 Nasdaq Composite 10679.11 10321.39 3.47 $/£ 1.143 1.125 £/$ 0.875 0.889 US 10 yr 3.95 4.01 -0.06
Dow Jones Ind 30172.17 29634.83 1.81 £/€ 0.859 0.867 €/£ 1.165 1.154 US 30 yr 3.96 3.98 -0.03
FTSEurofirst 300 1577.43 1549.64 1.79 ¥/$ 148.740 148.365 ¥/€ 146.011 144.708 UK 2 yr 3.51 3.84 -0.33
© THE FINANCIAL TIMES LTD 2022 Euro Stoxx 50 3443.31 3381.73 1.82 ¥/£ 170.026 166.963 £ index 77.110 77.193 UK 10 yr 3.97 4.33 -0.36
No: 41,148 ★ FTSE 100 6920.24 6858.79 0.90 SFr/€ 0.978 0.979 SFr/£ 1.139 1.129 UK 30 yr 4.37 4.79 -0.42
FTSE All-Share 3784.45 3740.85 1.17 JPN 2 yr -0.06 -0.05 -0.01
Printed in London, Liverpool, Glasgow, Dublin, CRYPTO
CAC 40 6040.66 5931.92 1.83 JPN 10 yr 0.25 0.25 0.00
Frankfurt, Milan, Madrid, New York, Chicago, San Oct 17 Prev %chg
Xetra Dax 12649.03 12437.81 1.70 JPN 30 yr 1.51 1.46 0.04
Francisco, Tokyo, Hong Kong, Singapore, Seoul, Bitcoin ($) 19551.00 19262.56 1.50
Nikkei 26775.79 27090.76 -1.16 GER 2 yr 1.94 1.94 0.00
Dubai Ethereum 1327.84 1305.80 1.69
Hang Seng 16612.90 16587.69 0.15 GER 10 yr 2.27 2.35 -0.08
MSCI World $ 2376.64 2411.69 -1.45 COMMODITIES GER 30 yr 2.29 2.39 -0.10
MSCI EM $ 863.33 854.53 1.03 Oct 17 Prev %chg
MSCI ACWI $ 552.08 558.71 -1.19 Oil WTI $ 86.02 85.61 0.48
FT Wilshire 2500 4666.64 4782.08 -2.41 Oil Brent $ 92.10 91.63 0.51 Prices are latest for edition
FT Wilshire 5000 36456.56 37358.04 -2.41 Gold $ 1649.30 1648.10 0.07 Data provided by Morningstar
2 ★ FINANCIAL TIMES Tuesday 18 October 2022

INTERNATIONAL
GLOBAL INSIGHT
‘Last resort’ plan

Brussels to propose gas price ceiling

ITALY

Emergency mechanism meeting of EU commissioners on Sun-
day and are due to be formally pre-
would allow EU to act if
fuel costs rise too high
sented after a second meeting of the
bloc’s executive arm today.
The mechanism would only be used
ALICE HANCOCK AND JAVIER ESPINOZA
BRUSSELS
as “a last resort measure” when gas
prices reached unsustainable highs, the
DAVID SHEPPARD — LONDON
Brussels is set to table “last resort”
measures to curb gas prices, as the EU
document said, and it should not
increase gas consumption or affect
intra-EU flows. Any emergency ceiling
seeks to ease the bloc’s energy crisis and should only last three months.
Next year could prove even more ‘If you try to
challenging if Russian supplies, now less
than a quarter of what they were, are narrow down
completely cut off and energy demand what this
from China, whose industries have been
curtailed owing to its zero-Covid policy, package
rebounds. encompasses,
The draft proposal emerged as mem-
ber states prepared for a summit in it is huge’
Brussels on Thursday and Friday aimed
at finding ways to curb the crisis. EU
EU diplomat
Amy
Kazmin
were among member states to suggest a
price cap mechanism last week.
One senior EU diplomat said the use
of TTF prices as a reference gave “clarity
and predictability” to companies. Mem-
Berlusconi’s swipe at
ber states wanted to ensure the commis-
sion stuck to a tight timeline for putting
Meloni bodes ill for
the new rules into force.
The commission’s draft suggests that
the ceiling on TTF gas prices should
coalition harmony
work in conjunction with other meas-

prepare for even greater supply chal-
lenges next year.
According to a draft European Com-
mission proposal seen by the Financial
Times, the EU should be able to inter-
vene in markets and set a “maximum
dynamic price” at which gas transac-
tions can take place on the Dutch Title
Transfer Facility, a benchmark for gas
traded in the bloc.
The plans follow an extraordinary
Infrastructure attacks
An EU diplomat described the pack-
age as “historic” in its ambition. “If you
try to narrow down what this encom-
passes, it is huge.”
Gas prices on the TTF exchange are
more than 200 per cent higher than in
October 2021 because of Russia’s
squeeze on gas supplies to the EU.
Hundreds of factories across Europe
have been shut, while the rise in energy
bills is fuelling decades-high inflation.
states have been at loggerheads over
how best to tackle the energy price surge
together, with the question of capping
gas prices proving contentious.
Germany, the Netherlands and Den-
mark have claimed market intervention
will trigger an increase in consumption
by lowering prices. But other EU coun-
tries fear that further rises in energy
prices could stoke social unrest.
Italy, Greece, Poland and Belgium
ures aimed at lowering prices.
The EU has already been negotiating
with Norway, the bloc’s biggest gas sup-
plier, to try to collaborate to cut costs.
Other proposals intend to limit vola-
tility in energy derivatives markets,
enforce reductions in gas consumption
and create a new benchmark for lique-
fied natural gas in the longer term.
The commission said it did not com-
ment on leaked proposals.
S
eething at his desk during parliament’s first ses-
sion last week, Silvio Berlusconi clutched a note
about his putative ally, Giorgia Meloni, the
Brothers of Italy party leader.
The former prime minister and media tycoon
called Meloni “opinionated, domineering, arrogant and
offensive . . . No willingness to change”, according to a
photograph of the note published in La Repubblica and
authenticated by the Financial Times. “She is someone
you can’t get along with,” the scribble read.
Meloni, however, was unfazed: “One point was missing
from Berlusconi’s list: that I cannot be blackmailed.”
The public showdown is an inauspicious warning of the
sniping and power struggles Meloni will face as she tries to
fulfil her pledge to provide stable governance as the head

Russia bombards Kyiv with kamikaze drones
CHRISTOPHER MILLER,
ROMAN OLEARCHYK AND
MEHUL SRIVASTAVA — KYIV
HENRY FOY — LUXEMBOURG
At least five explosions were heard in
the centre of Kyiv early yesterday, as
Russia conducted strikes on the
Ukrainian capital with kamikaze
drones, one week after it hammered
the country with a barrage of missile
and drone attacks.
The blasts, which occurred at about sun-
rise as residents travelled to work, were
preceded by the sound of Ukrainian sur-
face-to-air defences as Kyiv’s troops
tried to shoot down the drones, alleg-
edly supplied by Iran.
The attacks hit a building and the area
near the central railway station in the
Shevchenkivsky district of Kyiv, a target
of last week’s strikes. Ukrainian officials
said four people were confirmed to have
died, including a pregnant woman and
her husband.
“All night and all morning, the enemy
has been terrorising the civilian popula-
tion. Kamikaze drones and missiles are
attacking all of Ukraine. A residential
building was hit in Kyiv,” Ukraine presi-
dent Volodymyr Zelenskyy said in a Tel-
egram post that included video footage
of a residential building in Kyiv that had
been hit.
“Fire departments are working. Sev-
eral residential buildings were dam-
aged. Medics are on the spot. We are
clarifying the information about the vic-
tims,” mayor Vitali Klitschko wrote on
Telegram.
He also posted photos of fragments
from one of the drones, including a part
marked with the word Geran-2 in Rus-
sian, which is Moscow’s name for the
drones that Ukrainian and western offi-
cials claim it has received from Iran.
Oleksandr Kamyshin, head of
Ukrainian state railways, confirmed one
drone strike near the central station.
Financial Times reporters witnessed
thick smoke rising near critical electric-
ity infrastructure and ash falling in the
street as trains continued to depart.
Police and emergency services cor-
doned off the area and damage could be
seen to the roof of an energy company
building.
Russia’s defence ministry confirmed
it carried out the strikes with “high-pre-
cision long-range sea and air based
weapons” to hit “Ukrainian military
Down and out: command and energy system targets”. kaze” drones to Moscow if it obtains
a shattered The ministry claimed all targets were incontrovertible evidence of their
drone lies on a hit. against Ukraine, as Kyiv claims.
street in Kyiv EU member states have given their “A large group of member states were
after yesterday’s support to imposing fresh sanctions on in favour of sanctions,” Dutch foreign
attacks — Vladyslav Tehran if its military backing for Rus- minister Wopke Hoekstra, told the
Musiienko/Reuters
sia’s war in Ukraine is proved. In talks Financial Times after the Luxembourg
yesterday, the bloc’s foreign ministers meeting. “All evidence, or all things that
reached an in-principle consensus on we have seen, clearly suggests [Iran’s]
sanctioning Tehran for supplying kami- involvement.”
“Iranian drones are used, apparently,
Russian drones target Kyiv to attack in the middle of Kyiv. This is an
Area of atrocity,” Denmark’s foreign minister
detail Jeppe Kofod said.
UKRAINE Kyiv residents began to emerge from
shelters about an hour after the first
SHEVCHENKIVSKY three blasts. Andriy, who witnessed the
Security Services first wave of drone attacks, said he had
Parliament just stepped off an overnight train from
Ministry of Defence western Ukraine when he heard a noise
in the air and shooting, probably from
Drone attacks hit buildings and area Ukrainian air defences. “[A drone] was
near central railway station
there in the sky. It sounded like
‘vroom’,” he said. “And then, ‘boom’.”
K Y I V C I T Y As the attacks continued, passengers
O B L A S T emerged from the train station with lug-
©Mapcreator | OSM.org 2 km
gage, dashing through traffic and into
building entrances. As each drone
approached, police screamed for people
to run and Ukrainian air defence and
soldiers with machineguns opened fire.
Iran-supplied Shahed drones fly low
and slow before diving into their targets.
Ukrainian forces have nicknamed them
“mopeds” for the loud humming noise
produced by their engines.
Nearly eight months into its faltering
full-scale invasion of Ukraine, Russia
has in recent weeks stepped up attacks
using the drones, sending them in
swarms to make it harder for Ukrainian
air defence to target them.
Ukraine’s air force said it shot down 15
kamikaze drones — six over Odesa
region and nine over Mykolayiv region
— and three cruise missiles. It did not
say how many drones and missiles
struck their targets.
Andriy Yermak, Zelenskyy’s chief of
staff, called for more military equip-
ment from the west after the latest
strikes. “We need more air defence sys-
tems and as soon as possible,” he said.
Gideon Rachman see Opinion
of Italy’s three-party rightwing coalition.
The coalition’s leadership trio — Meloni, Berlusconi and
the League’s Matteo Salvini — have a common rightwing
ideology. But their personal rivalry is expected to fuel
plenty of ructions — if they manage to get over the current
crisis so as to form the government.
“There is a generational, and gender perspective on
this,” said Valerio Alfonso Bruno, fellow at the UK-based
Centre for the Analysis of the Radical Right. “Both Berlus-
coni and Salvini do not really accept the idea that the
strong one in this coalition is Meloni. It is not easy for an
Italian man to tolerate a woman so determined and so
strong. They will do what-
ever they can to make her
life complicated.”
‘It is not easy for
At present, Berlusconi’s an Italian man to
frustration with Meloni
stems from her apparent
tolerate a woman
refusal to give key minis- so determined
tries to some of his per-
sonal favourites, such as
and so strong’
his devoted aide Licia
Ronzulli, a former nurse.
On a deeper level, though, analysts say, the 86-year-old
Berlusconi, who dominated Italian politics for decades,
resents being eclipsed by Meloni, who he first tapped as a
minister in back 2008 and who he believes is failing to
show him sufficient respect.
“This is related to very human, delicate things,” said his-
torian Giovanni Orsina, author of a book on Berlusconi.
“For years and years, he was the undisputed master of the
coalition. What is important for him is that his importance
is recognised — even more than any political considera-
tion.”
Yet Meloni, whose Brothers of Italy won 26 per cent of
the vote, is eager to establish her own authority over both
Salvini, whose League won about 9 per cent, and Berlus-
coni, whose Forza Italia secured roughly 8 per cent.
“She has sent a very strong message that the moment
she is the prime minister, she is going to be in charge,” said
Daniele Albertazzi, a professor at the University of Surrey.
“She wants to show the world that, ‘don’t think for a
moment that just because I’m a woman . . . you can just
boss me around’.”
Furious at her attitude, Berlusconi ordered Forza Italia
senators last week to refrain from voting for Ignazio La
Russa, Meloni’s chosen candidate for the senate presi-
dency. But La Russa received enough opposition support
to get elected anyway, which further enraged Berlusconi.
Now, with Italy’s president Sergio Mattarella beginning
consultations that are expected to lead to a formal invita-
tion to Meloni to form a government, mediation efforts are
under way to engineer a reconciliation between the two.
“If we speak in terms of political rationality, not forming
the government, and destroying the coalition, is in no one’s
interest,” Orsina said. “Eventually, they will come to an
agreement.”
But Bruno predicted that even if a public reconciliation
takes place, tensions are unlikely to dissipate. “There will
be weeks when everything looks perfect. Then, there will
be weeks where everything looks more complicated, with
Salvini or Berlusconi yelling, ‘If you don’t do the things we
want, it is going to be the end of the government’.”
amy.kazmin@ft.com

Joint action Germany

US and UK strike accord to Scholz extends life of three

MAKE A WISE
INVESTMENT
Subscribe today at
ft.com/subscribetoday
FINANCIAL TIMES
Bracken House, 1 Friday Street, London EC4M 9BT.
Subscriptions & Customer service
Subscription offers: www.ft.com/subscription
Contact: +44 207 775 6000, fte.subs@ft.com
Manage your personal account: mma.ft.com
Advertising
Tel: +44 20 7873 4000, advertising@ft.com
Letters to the editor
letters.editor@ft.com
Executive appointments
Tel: +44 20 7873 4909
www.exec-appointments.com
Published by: The Financial Times Limited,
Bracken House, 1 Friday Street, London EC4M 9BT.
Tel: +44 20 7873 3000; Fax: +44 20 7407 5700.
Editor: Roula Khalaf.
Germany: Demirören Media, Hurriyet AS-Branch
Germany, An der Brucke 20-22, 64546 Morfelden-
Walldorf, +49 6105 327100. Responsible Editor, Roula
Khalaf. Responsible for advertising content, Jon Slade.
Italy: Monza Stampa S.r.l., Via Michelangelo Buonarroti,
153, Monza, 20900, Milan. Tel. +39 039 28288201
Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -
Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.
Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.
Spain: Bermont Impresion, Avenida de Alemania 12, CTC,
28821, Coslada, Madrid. Legal Deposit Number
(Deposito Legal) M-32596-1995;
Publishing Director, Roula Khalaf;
Publishing Company, The Financial Times Limited,
registered office as above. Local Representative office;
C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN
1135-8262.
UAE: Masar Printing & Publishing, P.O. Box 485100,
Dubai. Editor in Chief: Roula Khalaf.
France: Publishing Director, Jonathan Slade, 46 Rue La
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
5376 8253; Commission Paritaire N° 0919 C 85347; ISSN
1148-2753.
Turkey: Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24.
Sweden: Responsible Publisher - Christer Norlander
© Copyright The Financial Times 2022.
Reproduction of the contents of this newspaper in any
manner is not permitted without the publisher’s prior
consent. ‘Financial Times’ and ‘FT’ are registered trade
marks of The Financial Times Limited.
The Financial Times and its journalism are subject to a
self-regulation regime under the FT Editorial Code of
Practice: www.ft.com/editorialcode
Reprints are available of any FT article with your
company logo or contact details inserted if required
(minimum order 100 copies).
One-off copyright licences for reproduction of FT articles
are also available.
For both services phone +44 20 7873 4816, or email
syndication@ft.com
boost sanctions co-operation remaining nuclear plants
JAMES POLITI — WASHINGTON
The US and UK have agreed to bolster
their co-operation in implementing
and enforcing financial sanctions as
they try to make it harder for Russia
and other countries to elude economic
punishment imposed by the west.
In a joint announcement due to be pub-
lished yesterday, top officials at the US
and UK Treasury said they had decided
to take their collaboration to a “new
level”.
“We will identify opportunities to
pool expertise, to think creatively about
the challenges we face, to explore
opportunities to align the way we imple-
ment sanctions, and to assist our stake-
holders either through joint products or
by providing guidance resulting from
collaboration behind the scenes,” wrote
Andrea Gacki, director of the US Treas-
ury’s Office of Foreign Assets Control,
and Giles Thomson, director of the
Office of Financial Sanctions Implemen-
tation at the UK Treasury.
“Over time, we expect to realise the
benefits of our collaboration not only in
relation to the sanctions imposed in
response to Russia’s invasion of
Ukraine, but also across other common
sanctions regimes . . . our common val-
ues and combined role in the global
financial system make our partnership
incredibly potent,” they added.
The announcement came as Washing-
ton and London, along with other west-
ern allies, are considering new ways to
punish Russia for its latest military esca-
lation against Ukraine, but also sig-
nalled their intention to impose finan-
cial restrictions on entities in third
countries assisting Moscow in the war.
Meanwhile, the US Treasury is plan-
ning to create a new role of chief sanc-
tions economist to examine the eco-
nomic effect of sanctions.
Gacki and Thomson said the OFAC
and OFSI were particularly focused on
“cyber threats and the misuse of virtual
assets, improving information sharing,
and ensuring that our sanctions do not
prevent humanitarian trade and assist-
ance from reaching those in need”.
GUY CHAZAN — BERLIN
German chancellor Olaf Scholz has
moved to defuse a damaging row in his
three-party coalition by ordering the
country’s three last remaining nuclear
power plants to continue operating
until mid-April next year, as Berlin
battles to avert an energy crunch this
winter.
The government will create a “legal
basis” to allow the Isar 2, Neckarwest-
heim 2 and Emsland nuclear power
plants to operate beyond December 31
until April 15, 2023, at the latest,
Scholz’s spokesman said.
The German leader’s latest move
should resolve a long-running conflict
between two of the three parties in
Scholz’s coalition — the Greens and the
liberal Free Democrats, or FDP — over
the future of Germany’s last nuclear
power stations.
Robert Habeck, the Green economy
minister, had agreed to let Isar 2 in
Bavaria and Neckarwestheim in the
south-western state of Baden-Wuert-
temberg continue operating until next
April. But the FDP had insisted that
Emsland in the northern state of Lower
Saxony should also be kept online and
that all three plants should remain run-
ning until 2024.
Some in the party had even called for
reactors that have already been shut
down to be reactivated.
Christian Lindner, the FDP leader and
finance minister, welcomed Scholz’s
decision.
“It’s in the vital interest of our country
and our economy that we preserve all
capacities for power generation this
winter,” he said. “The chancellor has
now created clarity.”
But Scholz’s decision will be a bitter
pill for the Greens to swallow. Delegates
to a Green party conference held over
the past few days in Bonn passed a reso-
lution backing Habeck’s plans to keep
Isar 2 and Neckarwestheim 2 on
standby but affirming the closure of
Emsden by the end of the year. In the
wake of the vote, Lindner warned the
Greens not to set “red lines”.
Tuesday 18 October 2022 ★ FINANCIAL TIMES 3

INTERNATIONAL

Xi steers China towards collision with

Strategy assessment

the west in ‘great rejuvenation’ drive
Leader’s consolidation of power heightens risks as tensions escalate over Taiwan and Ukraine
EDWARD WHITE — SEOUL
China’s President Xi Jinping has sig-
nalled his intention to steer the foreign
policy of the world’s most populous
country and rising military superpower
away from reconciliation with the west
as he warned of “grave international
developments” not seen in 100 years.
In a nearly two-hour speech opening
the Chinese Communist party’s 20th
national congress in Beijing on Sunday,
Xi touted his administration’s success in
countering foreign interference and
safeguarding China’s “dignity” and
“core interests”.
Xi also issued thinly veiled criticism
of the US and its allies, boasting that
China under his leadership had taken a
“clear-cut stance” against hegemonism
and stood unwavering in the face of
“bullying”. China’s most powerful
leader since Mao Zedong reiterated his
commitment to taking control of Tai-
wan, potentially by military force.
But he also warned the party’s leader-
ship gathered in the Great Hall of the
People to “be ready to withstand high
winds, choppy waters and even danger-
ous storms”.
His remarks came as ties between
China and the west have sunk to histori-
cal lows. Experts on both sides see scant
possibility of an improvement under Xi,
who will cement his leadership beyond
the two five-year terms of his predeces-
sors at the party congress this week.
“The Chinese leadership has con-
vinced itself that the west won’t volun-
tarily accept China’s rise unless China
demonstrates formidable power,” said
Zhao Tong of Tsinghua University in
Beijing.
On Sunday, Xi emphasised that
China’s military had been significantly
strengthened under his watch and
promised that the nation’s rejuvenation
was on an “irreversible” course.
“There was a defensiveness to Xi’s
message, insisting that ‘security’ comes
first and that only the party can keep the
nation and people safe . . . with himself
at the helm,” said John Delury, an expert
on Chinese politics at Yonsei University
in Seoul. Analysts said Xi, who took
power in 2012, had decisively aban-
doned decades of caution in Beijing’s
foreign relations as he seeks to fulfil his
vision for China’s “great rejuvenation”
as a superpower.
Ryan Hass, a former White House
National Security Council director for
China and Taiwan, said Beijing seemed
to have resolved on compelling other
countries to accept China’s conduct and
ambitions, rather than “placate exter-
nal anxieties” over its growing strength.
“Whereas former paramount leader
Deng Xiaoping preached patience, Xi is
a study in impatience,” Hass, now with
the Brookings Institution, wrote in a
recent essay. “China’s leaders seem to
want to put the world on notice that
they are prepared to confront any coun-
try that dares stand in their path of
‘national rejuvenation’.”
Commander: In response to fears of China’s increas- over the past 10 years as a “tortuous
an image of Xi ing military and economic sway, the US road” from engagement to competition.
Jinping at the and its allies are formalising multilat- As frictions deepened, China’s leaders
military eral economic and security groups and “developed a clearer realisation” that
museum in restricting China’s access to leading the difficulties were deep-rooted not
Beijing. Below, technologies. Western capitals have also only in areas of direct competition but
Xi waves during become increasingly outspoken about were also embedded in the countries’
the party’s Beijing’s crackdowns in Xinjiang and respective political structures.
20th national Hong Kong and the People’s Liberation “Consequently, as long as China
congress this Army’s assertiveness in the South China insists on ‘socialism with Chinese char-
week — Florence Lo/ Sea and around Taiwan. acteristics’ — or what some Americans
Reuters; Kevin Frayer/Getty
Images
Wang Jisi, a top Beijing foreign policy call ‘state capitalism’ — and refuses to
expert, characterised US-China ties make fundamental political changes, it
must be prepared to engage in a long-
term strategic competition with the
United States,” Wang said recently.
Rather than try to address frayed rela-
tions with the west, analysts said Xi’s
diplomats and Chinese companies were
likely to be directed to expand influence
over governments seen as less closely
aligned with the US and Europe. Yet Xi’s
refusal to condemn Russia’s invasion of
Ukraine or employ his significant lever-
age to lobby President Vladimir Putin to
end the war threatens to undermine
Beijing’s standing with non-western
countries.
Since Russia’s full-scale invasion of
Ukraine in February, Beijing has echoed
the Kremlin’s insistence that US-led
Nato “encroachment” in Europe
‘If Russia was the real trigger for the conflict.
Over recent weeks, Xi has come under
is not renewed pressure to step back from his
stopped, decade-long partnership with Putin
amid rising global fears that Russia
China will might be preparing to use nuclear weap-
blame it on ons in Ukraine.
One Shanghai-based international
the west relations expert said China felt “more
and secure” as it expanded its influence. But
the expert said there were areas in
Ukraine which China’s position could be
pushing improved, including “Russia and the
handling of the Ukraine war”.
Russia into Others believed Xi would not aban-
a corner’ don his close friendship and “no limits
partnership” with Putin.
“If Russia is not stopped, China will
blame it on the west and Ukraine push-
ing Russia into a corner, with an alluded
message that no one should push China
on Taiwan, ever,” said Yun Sun, director
of the China programme at the Stimson
Center think-tank in Washington.
Wang, said China’s “official line has
encouraged nationalistic sentiments
and triumphalism . . . and discouraged
people from voicing modest views.
Those Chinese who are openly critical of
such a diplomatic style run the risk of
being attacked as ‘traitors’.”
Further reporting by Maiqi Ding in Beijing
EU ministers
told to adopt
harder line
on Beijing in
policy rethink
HENRY FOY — LUXEMBOURG
The EU must toughen up its attitude
towards China and see the country as
an all-out competitor with limited
areas of potential engagement, the
bloc’s ministers have been advised
ahead of talks on recalibrating Brus-
sels’ strategy towards Beijing.
The EU should work more closely with
the US, strengthen its cyber and hybrid
threat defences, diversify its supply
chains away from China and deepen ties
with other Indo-Pacific powers, accord-
ing to a paper prepared for member
states by the bloc’s foreign service.
“China has become an even stronger
global competitor for the EU, the US and
other like-minded partners,” says the
paper, seen by the Financial Times. “It is
therefore essential to assess how best to
respond to current and foreseeable
challenges.” These are likely to “widen
the divergence between China’s and our
own political choices and positions”.
The assessment “admits that China is
not going to change”, said a senior EU
official. “In short, moving to a logic of
all-out competition, economically but
also politically.”
The paper underscores the souring of
the EU-China relationship since the
existing policy towards Beijing was
agreed in 2019. China’s backing for Rus-
sia over Ukraine, its threats towards
Taiwan, its attitude on human rights in
Hong Kong and its treatment of its
Uyghur minority are all developments
since the EU formed its existing policy,
officials said, warranting a rethink.
The EU document suggests the bloc’s
existing policy of seeing China as “part-
ner-competitor-systemic rival” is out-
dated. The paper was discussed by for-
eign ministers at a meeting in Luxem-
bourg yesterday to prepare for a debate
on China by the bloc’s 27 leaders at a
summit that begins on Thursday.
Arriving at the meeting yesterday,
Dutch foreign minister Wopke Hoekstra
said: “There is increasing realism in the
dialogue with China. We are leaving
naivety behind.”
The five-page document includes just
one paragraph on areas of limited
potential co-operation with China,
including climate change, the environ-
ment and health. The EU’s dependence
on China for semiconductors and cer-
tain rare-earth metals is called a “strate-
gic vulnerability” by the paper, which
calls for more domestic production,
diversified supply chains and initiatives
such as better recycling inside the bloc.
Asked about the FT report on the
paper, China’s foreign ministry spokes-
person Wang Wenbin said: “China and
the EU are partners, not rivals. Our
economies are closely linked and highly
complementary. Our co-operation far
outweighs competition. We hope the EU
side will view China-EU co-operation in
an objective manner, expand common
interests and contribute to the stability
of global industrial and supply chains.”

Scandinavia Literary award East Asia

Kristersson to be Sweden’s PM Karunatilaka scoops Booker Seoul and US start drills after
thanks to far-right backing Prize for genre-busting novel North Korean missile tests
RICHARD MILNE — NORDIC AND BALTIC
CORRESPONDENT
Ulf Kristersson will be named Sweden’s
new prime minister today as the main-
stream rightwing politician becomes
the first in the country’s modern his-
tory to take power thanks to the sup-
port of a far-right party.
Kristersson won the vote in Sweden’s
parliament 176-173 with the backing of
the three centre-right parties that will
be in his government coalition as well as
the nationalist Sweden Democrats,
which as a support party has gained sig-
nificant influence over immigration,
law and order and other areas.
“I am happy about the support I have
received from parliament, but also I am
greatly humbled by the tasks that lie
ahead of us,” Kristersson said after the
vote yesterday.
Rightwing parties have ended eight
years of leftwing rule in Sweden after
arguing that the rich Scandinavian
country was facing a social crisis with a
record number of deadly shootings
this year, predominantly by gang mem-
bers in suburbs with large immigrant
populations.
Kristersson will include ministers
from his Moderate party as well as the
smaller Christian Democrats and Liber-
als in his government, which he will
announce today. The Sweden Demo-
crats, which beat the Moderates into
second place behind the centre-left
Social Democrats, will not have any
ministerial post but will control many of
the most important committees in
parliament.
The far-right party has also managed
to push through many of its most-de-
sired policies into the government pro-
gramme such as toughening punish-
ments for gang criminals, the considera-
tion of a national begging ban, and a sig-
nificant tightening of asylum rules
including for family reunions, increas-
ing them to the minimum EU level.
The rightwing parties including the
Sweden Democrats argue that Sweden’s
generous immigration policy — it took
in more asylum seekers per capita than
any other EU country in the years up to
2015 — has led to a rise in gang crime,
particularly deadly shootings and the
use of grenades and bombs. The party
argued that the ruling leftwing govern-
ment failed to take decisive action, lead-
ing to growing segregation, shootings
and social problems.
“Today is extra special because we are
part of the government formation proc-
ess,” said Jimmie Åkesson, leader of the
Sweden Democrats.
Leftwing parties and the centrist Cen-
tre party have decried the normalisa-
tion of the Sweden Democrats, which
has roots in the neo-Nazi movement but
has moderated its message in recent
years.
LAURA BATTLE — LONDON
Sri Lankan author Shehan Karuna-
tilaka has won the 2022 Booker Prize
for his genre-defying second novel, The
Seven Moons of Maali Almeida.
Set in 1990 amid the violence and chaos
of the Sri Lankan civil war, the novel fol-
lows Maali Almeida — a war photogra-
pher, gambler, gay man and self-
described “slut” — as he is given seven
nights to investigate his own death. The
novel takes the form of a murder mys-
tery but is characterised by its dark
humour, imaginative approach to story-
telling and dizzying cast of characters.
“What the judges particularly
admired and enjoyed in The Seven Moons
of Maali Almeida was the ambition of its
scope, and the hilarious audacity of its
narrative techniques,” said Neil Mac-
Gregor, the art historian and chair of
this year’s judges.
“This is a metaphysical thriller, an
afterlife noir that dissolves the bounda-
ries not just of different genres, but of
life and death, body and spirit, east and
west. It is an entirely serious philosophi-
cal romp that takes the reader to ‘the
world’s dark heart’ — the murderous
horrors of civil war Sri Lanka,” he
added.
In its review, the Financial Times
described The Seven Moons of Maali
Almeida as “a powerful evocation of Sri
Lanka’s brutal past”. “The afterlife is a
nightmarish world of ghouls and
demons but so is Down There, the coun-
try he left behind, beset by corrupt lead-
ers, death squads, suicide bombers and
greedy arms dealers,” it added.
Karunatilaka, who was born in Galle
in 1975 and grew up in the capital,
Colombo, becomes the second Sri Lan-
ka-born author to win the award after
Winner: Shehan
Karunatilaka’s
work is a murder
mystery set during
the chaos of Sri
Lanka’s civil war
Michael Ondaatje, who won in 1992 with
The English Patient.
His debut novel, Chinaman, which was
published in 2011 and centred on a Sri
Lankan cricketing virtuoso, won the
Commonwealth Book Prize.
The jury’s decision to give Karuna-
tilaka the £50,000 Booker Prize, the
UK’s premier fiction award for works
written in English, also represents a win
for independent publishing. The Seven
Moons of Maali Almeida is published by
Sort of Books, a small London-based
publisher of fiction and non-fiction.
This year’s Booker Prize ceremony
was the first held fully in person since
the onset of the Covid-19 pandemic. It
took place at The Roundhouse, a per-
forming arts venue in north London.
CHRISTIAN DAVIES — SEOUL
South Korea embarked on a round of
military exercises yesterday amid
heightened tensions after a salvo of
recent North Korean missile launches.
The annual drills will simulate threats
from North Korea including the use of
nuclear weapons and will involve troops
from across the South Korean military
and some US personnel.
On Friday, Pyongyang conducted
artillery drills near the inter-Korean
border and flew military jets south of a
reconnaissance boundary drawn by the
South Korean armed forces.
That followed a North Korean launch
on Wednesday of long-range cruise mis-
siles, which the state newspaper Rodong
Sinmun described as “another clear
warning to the enemy”, and the firing of
a ballistic missile over Japan his month.
State media reported that North
Korean leader Kim Jong Un wanted to
test the “rapid reaction ability of our
nuclear combat force”.
South Korea president Yoon Suk-yeol
denounced the “reckless provocations”
and accused Pyongyang of violating a
2018 military agreement.
But Pyongyang blamed the escalation
of tensions on US-South Korea military
exercises, a position supported by allies
Russia and China.
The UN Security Council failed to con-
demn Pyongyang’s firing of a ballistic
missile over Japan after Moscow and
Beijing blamed Washington for ignoring
North Korean security concerns.
Several experts on North Korea and
its nuclear weapons programme have
expressed concern the US and South
Korea have run out of options for con-
straining Pyongyang, leaving its nuclear
capabilities to advance unchecked.
A security strategy document pub-
lished by the Biden administration last
week promised “sustained diplomacy
with North Korea to make tangible
progress toward the complete denu-
clearisation of the Korean peninsula”.
But analysts say hopes of convincing
North Korea to give up its nuclear weap-
ons are increasingly unrealistic.
Pyongyang has finalised preparations
for its seventh nuclear test, according to
the US and South Korean governments.
Go Myong-hyun, senior fellow at the
Asan Institute for Policy Studies think-
tank in Seoul, said the “main aim” of
North Korea’s recent actions was to
“attract global attention for the apogee
of the cycle, which this time around is
expected to be the seventh nuclear test”.
Go added: “Pyongyang wants to per-
fect its nuclear and missile technology,
to establish equivalence between the
North’s illicit missile programmes and
the joint US-South Korea military drills
and to remind the world just how
advanced its nuclear and missile capa-
bilities are.”
4 ★ FINANCIAL TIMES Tuesday 18 October 2022

INTERNATIONAL

Africa Abe assassination

Nigerian floods kill 600 and displace 1.3mn Japan to open

Heavy rainfall and dam ings to make better preparations to
assist people in the worst affected areas.
discharge wreak havoc Sadiya Umar Farouq, the humanitar-
despite early warnings ian affairs and disaster management
earlier this month, claiming at least 76
lives.
Farouq warned that the southern
states of Anambra, Delta, Cross River,
inquiry into
and information about the 2022 flood and communities along the courses of ‘Moonies’ over
links with
but states, local governments and com- the rivers Niger and Benue,” the agency
munities appeared not to take heed,” added.
she said. This year’s floods are the country’s

AANU ADEOYE — LONDON

More than 600 people have died and
1.3mn have been displaced from their
homes in flooding that has hit 33 of
Nigeria’s 36 states and the capital Abuja,
government officials have said.
The government said an unusually
heavy rainy season aggravated by cli-
mate change and the discharge of excess
water from a dam caused the severe
flooding, adding that some states and
local governments did not heed warn-
minister, said more than 108,000 hec-
tares of farmland have been submerged,
and critical infrastructure such as roads
have been destroyed. More than
200,000 homes have also been partially
or completely destroyed.
Several rice-producing states in
northern and central Nigeria are among
the worst affected, raising concerns
about shortages at a time when annual
food inflation has hit 23 per cent.
A boat carrying at least 80 people
fleeing rising water levels capsized in
the south-eastern state of Anambra
Middle East. Economic incentive
Rivers and Bayelsa could suffer more
flooding into November. She urged state
and local governments to prepare to
evacuate “people living on flood plains
to high grounds, providing tents and
relief materials, fresh water as well as
medical supplies for possible outbreaks
of waterborne diseases”.
President Muhammadu Buhari has
ordered the release of 12,000 tonnes of
food from strategic reserves.
Farouq appeared to blame state and
local administrations for a lack of pre-
paredness. “There was enough warning
The floods were exacerbated by the
release of excess water from the Lagdo
dam in neighbouring Cameroon.
Nigeria’s National Emergency Manage-
ment Agency warned last month that
water would “cascade down to Nigeria
through River Benue and its tributaries,
thereby inundating communities that
have already been impacted by heavy
precipitation”.
Nigeria’s inland water reservoirs are
also expected to continue overflowing
until the end of October. “This will have
serious consequences on frontline states
worst since 2012, when torrential rain-
fall and the release of excess water from
dams in Nigeria as well as Cameroon
politicians
and Niger killed almost 400 people and
displaced 2.1mn, resulting in an esti- KANA INAGAKI — TOKYO
mated damage of $17bn.
The Japanese government will launch
The UN warned last year that Nigeria
an investigation into the Unification
was at risk of suffering from the effects
Church amid a public outcry over close
of climate change as rainfall events
ties between politicians and the South
became more severe.
Korean religious group that came to
Nigeria’s national climate policy doc-
light following the assassination of
ument, published in 2020, has also
former prime minister Shinzo Abe.
warned about the country’s exposure to
adverse climate events. The probe into the church, which is
commonly known as the “Moonies”, is
highly unusual in Japan, where a consti-
tutional guarantee of religious freedom
makes it difficult for local authorities to
investigate or clamp down on contro-
versial practices by such groups.

Gazans yearn for relief of Israeli work permits
Desperate enclave citizens
welcome the chance but deep
poverty is likely to remain
JAMES SHOTTER — GAZA CITY
Mohammed El Dahdooh has been strug-
gling to find work for so long that he can
barely feed his family, let alone pay his
children’s university fees. So when his
eldest son announced he wanted to
marry, it was the final straw.
“I told him: ‘If you ask me again, I will
shoot you,’” joked Dahdooh, a tractor
driver from Gaza, an impoverished
enclave of 2.3mn people that has been
blockaded by Israel and Egypt since the
Hamas militant group took power in
2007. “I don’t have any money to pay for
your university certificate. And now
you are asking me if you can marry?”
Struggling to support his wife and six
children in Gaza, where unemployment
is close to 50 per cent, Dahdooh has, like
thousands of other Gazans in the past
year, applied for a permit to work in
Israel. Before 2007, more than 100,000
Gazans worked in Israel. But after
Hamas took control, Israel stopped issu-
ing permits. Last year, however, it began
granting them again as part of an
attempt to bolster the economic incen-
tives for stability in the wake of an
11-day war with Hamas.
After a year of relative quiet, fighting
erupted again in August, as Israel fought
a 56-hour conflict with a smaller, more
radical Gaza militant group, Palestinian
Islamic Jihad. But Hamas stayed out of
the flare-up.
Hamas officials play down the link
between the permits and their decision
not to join the fighting, and analysts say
other factors, such as the need to
regroup after previous rounds of fight-
ing, were more important.
However, Israeli leaders, who have
made clear the work permits are contin-
gent on a calm security situation, last
month increased the number by 1,500
to 17,000. Prime Minister Yair Lapid has
raised the prospect of a further increase
to 20,000. “Gaza without an economy is
less stable than Gaza with an economy,”
an Israeli security official told journal-
ists at a briefing earlier this year.
For those lucky enough to get one, a
permit can be life-changing. Dahdooh
said that even if he found a job in Gaza,
he would earn a maximum of Shk40
($11) a day and struggle to find more
than a couple of days’ work a month. In
Israel, by contrast, even in menial jobs
Blockade life: in agriculture or construction, Gazans
Palestinian can earn 10 times as much.
fishermen Dahdooh’s brother, a metalworker, is
unload a catch among those who have received a per-
at Gaza port. mit. “Clearly, he is in paradise,” Dah-
Below, a mother dooh said wistfully. In the past, he
washes her added, his brother’s son used to beg to
children at their borrow one or two shekels from his par-
destroyed house ents. “Now, [the son] is taking Shk50
in Gaza City and they do not care.”
Ahmed Zakot/SOPA Images/
For Gaza’s economy as a whole, the
LightRocket/ Getty Images;
Majdi Fathi/NurPhoto/ effect is more limited. Its businesses
Reuterst have been crippled by the blockade and
its infrastructure has been devastated
by repeated bouts of fighting, including
four full-scale wars between Israel and
Hamas. On the streets, donkey and
horse-drawn carts ferry those who can-
not afford cars or fuel. In the vacant lots
beside them, men comb through rub-
bish in search of something to salvage.
“Even if we have 20,000 per-
mits . . . it’s a very, very small injection
into the body of the patient. And we are
talking about an exhausted, exhausted
economy,” said Raji Sourani, from the
Palestinian Centre for Human Rights.
“Even those who find work will need
one or two years to pay off their debts
before they can start living with the
income they have. Go and ask the uni-
versities how much debt their students
have. Or go to the streets: you will find
this unprecedented number of beggars.”
The security impact of the permits is
also hard to divine. Hazem Qassem, a
Hamas spokesman, said that while it
was “the right thing for our residents to
have the chance to work in any place”
the main reason Hamas sat out the lat-
est fighting was to avoid giving Israel “an
excuse to engage more intensively in its
aggression against Gaza”. Hamas, he
added, could be pragmatic in its rela-
tionship with Israel in “very small
things”. But the permit scheme “can-
‘Even if we not bind us” on bigger issues, he said.
“The permits could be a factor [in
have Hamas’s decision], but you have to look
20,000 at the whole picture,” said Mkhaimer
Abusada, a professor of politics at Gaza’s
permits . . . Al-Azhar university, arguing that the
it’s a very, devastation caused by previous rounds
of fighting and Hamas’s position as the
very small de facto government of Gaza meant that
injection its calculations about when to fight were
different from those of smaller, more
into the radical groups, such as Islamic Jihad.
body of the On the other side of the border, Ofer
Lieberman from the Nir Am kibbutz —
patient’ which is dotted with concrete blast shel-
ters in the event of rocket fire from Gaza
— is more convinced of the scheme’s role
in security. “If the economy in Gaza gets
worse, there will be a lot of Palestinians
who, in the deep, deep sense of the word,
have nothing to lose,” he said.
He is also keen on the scheme because
Gazans, he said, are good at tending the
kibbutz’s bananas and citrus fruit. Since
the permit scheme began, he has had
between two and 30 Gazans working at
Nir Am, depending on the season.
Dahdooh, who worked in Israel
between 1994 and 2000, is hoping for a
similar return. “[Getting a permit]
would be a huge relief,” he said.
The directive from Prime Minister
Fumio Kishida yesterday came as he
sought to stem a fall in his approval rat-
ing. The government has come under
fire for not taking a tougher stance on
the church’s political ties as well as its
controversial donation collection meth-
ods. A recent poll by Jiji showed a 4.9
percentage point drop in support for the
prime minister to 27.4 per cent.
Abe, Japan’s longest-serving prime
minister, had a longstanding association
with the church, which is known for-
mally as the Family Federation for
World Peace and Unification. Founded
in 1954, the group is famous for mass
weddings and has about 100,000 mem-
bers in Japan.
The suspect in Abe’s assassination in
July said he was seeking revenge for the
financial ruin his mother allegedly suf-
fered because of her involvement with
the religious group.
An investigation by the ruling Liberal
Democratic party revealed that nearly
half of its 379 parliamentarians had
some connection with the Moonies.
A government hotline has received
more than 1,700 complaints regarding
the church’s activities, most of them
related to donations and other financial
troubles. In 2009, the Japan chair of the
Unification Church resigned after some
of its executives were charged with ille-
gal door-to-door sales of spiritual goods
such as personal seals and vases.
Kishida instructed the Ministry of
Education, Culture, Sports, Science and
Technology, which oversees religious
groups, to examine the church using the
“right to question” clause under Japan’s
Religious Corporation Law.
Under the provision, the government
can question a religious group if there is
suspicion that it has violated the law or
deviated from the “purpose of the reli-
gious organisation”. It can then ask a
court to order the group to be dissolved
if the violation can be established.
“As far as I am aware, I have carried
out my political activities without hav-
ing any ties to the former Unification
Church,” Kishida said at a parliamen-
tary budget committee. “Because I have
no relationship, I will be responsible for
resolving this issue.”
The church’s Japanese branch said it
would “respond with sincerity” if
contacted by the culture ministry’s
investigators.
Experts said the provision had never
been applied in the past and the right to
question was not legally binding, mean-
ing religious groups would not be penal-
ised if they submitted false reports to
the government.
It is also unclear how long the process
will take, and applying the clause does
not mean the religious group will be dis-
solved.

Businesses For Sale State of emergency

Indigenous conflict in Mapuche region tests Chile’s leftwing government

LUCINDA ELLIOTT — ARAUCANÍA
Faced with a festering conflict in the
lakes and valleys of the south between
indigenous activists, landowners and
forestry companies, Chile’s new
leftwing government thought it had the
solution: dialogue, and a new constitu-
tion giving more rights to ancestral
groups.
Seven months later, President Gabriel
Boric is still struggling to deal with a
surge of violence in the Mapuche region
of Araucanía. Voters rejected the pro-
posed new constitution, and the govern-
ment has extended a state of emergency
for an eighth time to contain the
situation.
Legal Notices Araucanía has been under a state of
emergency since October 2021, and the
army has been deployed to provide
security. Boric pledged to remove troops
on assuming office in March, but was
quickly forced to backtrack.
Critics said the leader had underesti-
mated the complexity of the issues with
the Mapuche, which could further
weaken his position at a time when his
public support has fallen sharply and
the conflict worsens.
Araucanía’s southern plains are home
to some 300,000 indigenous Mapuche,
who resisted conquest by Spanish colo-
nisers and were only defeated in the late
19th century after Chile won independ-
ence. Its southern plains are lined by
active volcanoes. To the east tower the
snow-capped Andes, and to the west,
the Pacific. Huge swaths of land that the
Mapuche say was taken from them have
been planted with pine and eucalyptus
in recent decades, replacing the native
forests.
Few of the profits made by forestry
companies are shared among Arau-
canía’s wider population of about 1mn,
who are the poorest in Chile. Armed
Mapuche groups have long carried out
attacks against forestry companies, who
they claim have invaded their ancestral
lands. Militants have burnt buses,
churches and schools, attacked lorries
and stolen timber.
Like his ancestors, Juan Cayul Que-
ipul, 64, has spent his entire life in this
mountainous area. As a community, he
said, the Mapuche are being ostracised
in ways that reminded him of the mili-
tary dictatorship in Chile that ended in
1990. “They [the government] blame us
for things we haven’t done,” Queipul
said, referring to a series of arson
attacks in Araucanía.
Many from his community feel let
‘Mapuche want the same
rights that correspond to
everyone, not to surpass
the rights of others’
down by Boric’s coalition, which pre-
sented itself as being sympathetic to
their cause. They were concerned about
property rights and how the new consti-
tution set them apart as a community.
“Mapuche want the same rights that
correspond to everyone in this country,
not to surpass the rights of others,” said
Hugo Alcamán, president of the
Mapuche corporation of professionals, a
non-profit organisation.
Only 27 per cent of Araucanía’s resi-
dents supported the constitution, which
would have enshrined indigenous
rights. In towns like Saavedra and Chol-
chol, where over 70 per cent of voters
consider themselves indigenous, big
majorities voted against it.
Days before the September 4 plebi-
scite, police arrested Héctor Llaitul, a
leader of a Mapuche organisation, Coor-
dinadora Arauco-Malleco, for alleged
involvement in arson attacks in Arau-
canía. His detention was widely con-
demned by the Mapuche as unlawful,
and has reignited feelings of mistrust
towards the government.
Salvador Millaleo, a Mapuche lawyer
who stepped down from advising Boric’s
coalition in May, told El Diario Finan-
ciero that the rejection of the constitu-
tion together with the detention of
Llaitul would make it difficult for the
government to reopen talks and end the
violence. “[Mapuche] people don’t want
to dialogue with weak political actors,”
he said.
Queipul, a grandfather of 18, spear-
headed one of the first land restitution
programmes in 1998 financed by the
state after General Augusto Pinochet’s
rule. Today, visitors to his 58-hectare
plot must pass an army checkpoint.
“We’re accused of being terror-
ists . . . when all we are is poor,” said
Queipul while standing outside his
greenhouse. A military helicopter later
whirled overhead.
Crime expert Hugo Frühling at the
University of Chile said there was no
“serious plan” in place under Boric.
Resolving the land conflict by returning
areas to the Mapuche requires invest-
ment, dialogue and time, something
that “no government wants to start”, he
added.
Chile’s interior ministry said that the
government was “committed” to guar-
anteeing safety in Araucanía.
The mayor of Temuco, Araucanía’s
regional capital, called for a proper plan
to address rural poverty. “There is an
undeniable economic element that
incites violence,” mayor Roberto Neira
said. “No water supplies, unpaved
roads, isolated communities all need to
be addressed. People have to be con-
nected and welcomed.”
Tuesday 18 October 2022 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 18 October 2022

New lease on battery life Hybrid pioneer Toyota takes a different road to rivals as it plays catch-up in electric car race y PAGE 9

Goldman to Outspoken Rapper West agrees to buy ‘free

speech’ app Parler after Twitter suspension
Bank of
America tops
merge trading earnings
estimates
and investment IMANI MOISE — NEW YORK

units in revamp
Bank of America reported better than
expected third-quarter earnings as
expanding profit margins from con-
sumer lending helped offset sliding
investment banking revenue.
“Our US consumer clients remained
resilient, with strong, although slower

3 Crown jewel divisions to join forces growing, spending levels and still main-
tained elevated deposit amounts,” said

3 Move will mirror Wall Street rivals
JOSHUA FRANKLIN — NEW YORK
Goldman Sachs is planning to fold its
crown jewel trading and investment
banking business into one unit as the
Wall Street bank shrinks from four to
three divisions.
The move is part of a sweeping
reorganisation by chief executive David
Solomon in an attempt to buttress the
bank’s stock market valuation.
Solomon has struggled to close a stock
market valuation gap with rival banks
that has widened since he took over as
chief executive from Lloyd Blankfein in
2018.
The Wall Street bank is now looking to
merge its asset and wealth management
divisions and shift part of its money-
The combined asset and
wealth division will
include its online
retail bank, Marcus
losing consumer business into a newly
formed unit, according to people famil-
iar with the matter.
The combined asset and wealth divi-
sion will include its online retail bank,
Marcus, and be led by Marc Nachmann,
at present the co-head of Goldman’s
trading division.
Other parts of Goldman’s retail
banking business, such as its credit card
partnership with tech giant Apple and
the online loans provider GreenSky,
which it acquired last year for about
$2.24bn, will form a new division called
Platform Solutions.
This will also house Goldman’s bur-
geoning transaction banking business,
which helps companies move their
money around and had previously been
part of Goldman’s investment bank.
Goldman’s push into retail banking
started in 2016 and has come under
scrutiny from investors and internally
after years of losses and escalating costs.
The new structure, which was first
reported by the Wall Street Journal,
could be announced as soon as today
when Goldman reports third-quarter
earnings. For the second quarter, Gold-
man reported that net income fell 47 per
cent to $2.9bn, down from $5.5bn in the
same period last year.
The people familiar with the matter
said the combined investment banking
and trading division would have three
co-heads: Dan Dees and Jim Esposito,
who currently run the investment bank,
and Ashok Varadhan, co-head of the
trading division.
The unified trading and banking divi-
sion will bring Goldman in line with
peers Morgan Stanley and JPMorgan
Chase which have a similar structure.
The moves mark a major change for
how one of Wall Street’s biggest players
will operate. They come after years of
struggles to persuade investors to assign
Goldman’s stock a higher valuation.
Goldman delivered record profits and
its share price hit a record high last year,
but its price to book ratio, a metric that
compares a company’s stock price
against the value of its assets to give a
sense of its true valuation, has lagged
behind peers such as Morgan Stanley.
The market has cheered Morgan
Stanley’s expansion into more stable
fee-generating businesses such as
wealth management, as opposed to vol-
atile investment banking and trading
activities.
Solomon has tried to expand into
more predictable businesses such as
asset management and transaction
banking, and offset the volatility of the
trading business, but has so far strug-
gled to change Goldman’s revenue mix
meaningfully away from investment
banking and trading.
Hear Ye: Kanye West wants to defend the right of conservatives to express themselves — Jean-Baptiste Lacroix/AFP/Getty Images
TIM BRADSHAW — LONDON
HANNAH MURPHY — SAN FRANCISCO
Controversial rapper Kanye West has
agreed to buy Parler, a would-be
Twitter rival whose extreme stance
on free speech saw it banned from
Apple and Google’s app stores and
Amazon Web Services in the wake of
last year’s US Capitol riot.
Parler’s parent, Parlement Technolo-
gies, announced the acquisition yes-
terday, without disclosing financial
details. The Nashville-based business
said it had struck an “agreement in
principle” with West, who has
changed his name to Ye, and that the
deal was expected to close in the
fourth quarter.
West was suspended from Twitter
and Instagram this month after mak-
ing comments that were ruled anti-
Semitic. After the offensive posts
were deleted he was allowed to return
to the platforms, where he has tens of
millions of followers. “In a world
where conservative opinions are con-
sidered to be controversial we have to
make sure we have the right to freely
express ourselves,” West said in a
press release issued by Parler. The art-
ist has not posted about the deal from
his verified account on Twitter.
The Parler profile that Parlement
identified as West’s, which appears to
have been set up yesterday, had 5,000
followers by late afternoon in London
and had not yet posted.
Parlement chief executive George
Farmer said the deal would mean
West “will never have to fear being
removed from social media again”.
Parler was set up in 2018 as a chal-
lenger to existing social media plat-
forms, which some US conservatives
and far-right supporters alleged had
become biased against them. Other
alternative social media platforms
include former US president Donald
Trump’s Truth Social app, GETTR,
and Rumble, a free speech video plat-
form with backing from venture capi-
talists Peter Thiel and JD Vance.
Meanwhile, Elon Musk, a self-
declared “free speech absolutist”, has
agreed to buy Twitter, pledging to
relax its content moderation rules.
Farmer, a former hedge fund part-
ner and candidate for the UK’s Brexit
party, took over as head of Parler in
May last year after his predecessor,
John Matze, was fired after disagree-
ments with its key backer, Republican
mega-donor Rebekah Mercer.
Farmer’s wife, rightwing commen-
tator Candace Owens, appeared with
West at his fashion show in Paris this
month. Both wore T-shirts with the
controversial phrase “White Lives
Matter”, an apparent critique on the
Black Lives Matter movement.
Parler was allowed back on to
Apple’s App Store in April 2021 but
only returned to Google Play, the app
store for Android phones, last month.
chief executive Brian Moynihan in a
statement accompanying the lender’s
results yesterday.
Spending across the second-largest
US bank’s debit and credit cards jumped
9 per cent, or $18bn, compared with the
same period a year ago. A $68bn
increase in consumer deposits helped
offset falling balances from corporate
customers, which dropped 7 per cent.
Like its peers, Bank of America has
Net interest revenue
surged 24 per cent to
$13.8bn, fuelled by
higher interest rates
benefited from the Federal Reserve’s
campaign to cool the economy with
interest rate rises, which increase how
much lenders can charge borrowers.
Net interest revenue, or the difference
between how much a bank earns on its
loan book and pays for deposits, surged
24 per cent to $13.8bn, fuelled by higher
interest rates and a 12 per cent increase
in loans. Bank of America reported a net
interest margin of 2.06 per cent, up from
1.68 per cent last year.
However, concerns about a possible
recession — which are heightened by ris-
ing rates — have contributed to plunging
revenue in other parts of the bank.
Investment banking fees fell 46 per cent
to $1.2bn as economic uncertainty kept
deals on the back burner.
Earnings were also dented by a
$378mn reserve build to account for
potential bad loans.
Overall, the Charlotte, North Caroli-
na-based bank reported a quarterly
profit of $7.1bn, or 81 cents a share,
down from $7.7bn, or 85 cents a share, a
year earlier. Total revenue rose 8 per
cent to $23.5bn.
Wall Street analysts had forecast
earnings of 78 cents a share on $23.5bn
in revenue, according to a FactSet poll.
Shares rose 5.4 per cent to $33.41 in
early afternoon trading.

UK banks’ rising profits risk attracting wrong kind of attention

ble, according to Gary Greenwood, an
INSIDE BUSINESS analyst at Shore Capital. NatWest
recently grabbed the attention of the
FINANCE City by forecasting it could now return
14 to 16 per cent. Greenwood says from
Jonathan the point of view of banks and their
investors, when Rote nudges up to about
Guthrie 20 per cent “it is in the realms of attract-
ing the wrong kind of attention”.
View it from the perspective of a cou-
ple who need to refinance their loan
it. The reform would raise plenty of
money — equivalent to a reduction of
about a quarter in domestic bank earn-
ings by 2024, according to Jonathan
Pierce of Numis. But it would be a messy
kind of tax. It would annoy an already
rebellious central bank. And it would be
too complicated for politicians to
present slickly to the public as citizens’
justice. Increasing the UK’s 8 per cent
surcharge on banking profits would be

B
e careful what you wish for.
Since the great financial cri-
sis, UK banks have mostly
made returns below their cost
of capital. The culprit has
been low interest rates. Chief executives
talked about rising rates in the wistful
tones of Mr Micawber hoping some-
thing would turn up.
Now higher rates are bringing fat
returns to lenders such as Lloyds, Nat-
West, Barclays and HSBC, as margins
over deposit payouts widen.
But the rebound has been so large and
fast it has created another problem for
them. Profits are at last burgeoning
again, as quarterly results next week
should show. But the bonanza will coin-
cide with serious financial stress for
some mortgage borrowers.
That elevates the risk of political ret-
ribution, via higher taxes on banks. As
bank bosses sweat over slide decks, they
are asking themselves: “Is there a way to
make this problem go away?”
The net interest income of Lloyds,
NatWest and Barclays will rise by 15 to
32 per cent in the third quarter com-
pared with the same period of 2021,
according to Visible Alpha, an estimates
service. The improvement would be
even more marked in future quarters.
Returns on tangible equity of 10 to 12
per cent through the economic cycle are
likely to be seen as politically accepta-
right now. Suppose they have post-tax
income of about £34,000. If they bor-
rowed liberally, they might have been
covering repayments equivalent to a
third of their salary on a five-year fix at
2 per cent. When they refinanced, a tri-
pling in their mortgage rate would leave
them with repayments about 50 per
cent higher. I calculate these would total
£16,000 using data from Ray Boulger, of
mortgage broker
John Charcol. That This government or a
would plainly be
unaffordable, par- successor may yet reverse
ticularly when current Conservative
other household
bills are soaring policies with punitive
too.
Borrowers with
taxes on banks
buy-to-let mortgages are confronted
with even bigger increases on their
loans. These are typically interest-only,
so mortgage holders do not have the
option of reducing capital repayments.
But BTL borrowers, a category I once
belonged to, are those despised crea-
tures called rentiers. Their distress
would provoke little sympathy.
This government or a successor may
yet reverse current Conservative poli-
cies with punitive taxes on banks.
Former chancellor Kwasi Kwarteng had
contemplated reducing or abolishing
so-called reserve remuneration. This is
the interest the Bank of England pays
commercial banks that park funds with
much easier.
What are bank bosses to do? They are
considering a couple of strategies to
avert the threat of windfall taxes, or at
least reduce their severity. First, they
could provide hefty forbearance to
mortgagors who are struggling. This
would be politically expedient as well as
ethical. A mix of term extensions and
payment holidays would do it.
These would register in higher bad
loan provisions, pointing to the second
adaptation to UK banking’s awkwardly
timed profits revival. Banks typically
use provisions to put aside rainy day
money at the discretion of bosses, on top
of any provisions triggered by the dete-
riorating payment record of borrowers.
UK banks took hefty provisions in
response to the huge economic uncer-
tainties of the pandemic. Big lenders
have remained well capitalised and
have therefore begun whittling buffers
down again. A return to heavier provi-
sioning now seems likely. That would
conveniently push down the pre-tax
profits that anger some politicians and
pundits. With political and financial
turmoil raging in the UK, auditors could
hardly object.
As one senior banker puts it, with wry
understatement: “In these markets, it
is not that difficult to create a negative
scenario for the UK economy.”
jonathan.guthrie@ft.com
Tuesday 18 October 2022 ★ FINANCIAL TIMES 7
8 ★ FINANCIAL TIMES Tuesday 18 October 2022

COMPANIES & MARKETS

Banks Oil & gas

Credit Suisse settles crisis-era lawsuit Shale pioneer

Swiss bank agrees to pay
$495mn in US case over
pre-2008 mortgage bonds
OWEN WALKER — LONDON
OLAF STORBECK — FRANKFURT
Credit Suisse has reached a $495mn set-
tlement with US prosecutors over a case
relating to financial crisis-era mortgage
bonds, as the lender tries to draw a line
under a swath of legal disputes racked
up over the past decade.
The New Jersey attorney-general had
filed a case against Credit Suisse in 2013
seeking up to $3bn of damages over the
bank’s sale of residential mortgage-
backed securities dating to before 2008.
The bank said yesterday it had struck
a settlement deal with New Jersey
authorities, adding it had already provi-
sioned for the full amount and the case
was the largest remaining one linked to
RMBS it had needed to resolve.
“The settlement, for which Credit
Suisse is fully provisioned, marks
another important step in the bank’s
efforts to proactively resolve litigation
and legacy issues,” the bank said.
Credit Suisse executives, under
recently installed chief executive Ulrich
Körner, are in the final stages of plan-
ning a radical revamp of the business
following a succession of expensive
scandals in recent years.
Travel & leisure. Restrictions
The Financial Times reported over
the weekend that the company expects
the overhaul to create a capital hole of
between SFr4bn and SFr4.5bn
‘The settlement . . . marks
an important step in the
bank’s efforts to resolve
litigation and legacy issues’
($4bn-$4.5bn), which includes restruc-
turing and legal costs.
The New Jersey settlement is an
important early victory for Markus
Diethelm, who was made the bank’s
general counsel in the summer.
Diethelm, who spent 13 years in the
same role at UBS fighting legal battles
stemming from the financial crisis, was
brought to Credit Suisse with a mandate
to clear up unresolved legal cases.
The Swiss bank was an outlier among
peers in its initial decision to fight
lawsuits related to the sale of RMBS,
instruments at the heart of the 2007-08
financial crisis, but has changed its
stance in recent years.
Credit Suisse signed a $5.3bn settle-
ment with the US Department of Justice
in 2017 over its RMBS business, while it
settled a separate RMBS case with finan-
cial services group MBIA for $600mn
last year.
The bank said yesterday it had five
remaining RMBS cases at various stages
of litigation.
Credit Suisse is currently on trial in
New York over its role in foreign
exchange manipulation between 2007
and 2013, while it is also in the middle of
a trial in Singapore in a case over its rela-
tionship with Georgia’s former prime
minister, Bidzina Ivanishvili.
Billionaire Ivanishvili, who is Geor-
gia’s richest person, is pursuing the
Swiss lender for up to $800mn in dam-
ages, having already been awarded
$607.5mn from the bank in a related
case in Bermuda this year.
The bank has set aside a total of
SFr3.9bn in net provisions for litigation
since the start of 2020.
Hamm to take
Continental
Resources
private
JAMES FONTANELLA-KHAN
AND DEREK BROWER — NEW YORK
Shale billionaire Harold Hamm has
reached a deal to buy Continental
Resources in its entirety, valuing the
equity of the US oil producer he
founded at about $27bn.
The move to fully privatise Continental
marks an effort by one of the most influ-
ential figures in the US energy industry
to break free of pressures from Wall
Street and begin pumping more oil.
“We have all felt the limits of being
publicly held over the last few years, and
in such a time as this, when the world
desperately needs what we produce, I

Disney warns France over cinema releases
Studio rails at Paris’s rules
aimed at protecting its
theatres and film industry
ALEX BARKER — LONDON
LEILA ABBOUD — PARIS
Disney will release Black Panther:
Wakanda Forever in French cinemas next
month but has warned that its biggest
movies may go straight to streaming in
2023 unless what it calls the country’s
“anti-consumer” distribution rules are
fundamentally reformed.
The decision ends months of debate at
Disney over whether to use the block-
buster Marvel movie, an important
highlight of the box office calendar for
the cinema industry, to take a stand over
France’s highly restrictive “windowing”
regime.
France sees the system, which sets the
timetable of when films shown in cine-
mas can then be shown on television or
streaming platforms, as a key way to
protect its film industry and cinemas.
Disney said yesterday its decision
rested on French authorities acknowl-
edging the system “needs to be modern-
ised” and setting “a clear timeline for
those discussions”. But it added that
until a “quick and equitable solution is
found”, future movie releases would be
decided on a “film-by-film basis”,
implying some may be held back if
progress is not made.
Under the current rules governing the
industry in France, the decision to opt
for a cinema release will prevent Disney
from showing the Black Panther sequel
on its Disney Plus streaming service in
France until April 2024, and then for
only five months.
Unless a partnership deal is agreed
with a broadcaster, the film will then
return to the Disney Plus service perma-
nently only in November 2025 — three
years after it hits cinemas. During that
period the movie will have been shown
on French pay TV and free-to-air chan-
nels. Outside France, by contrast, the
Black Panther sequel is likely to appear
on Disney Plus by Christmas.
“As we have stated before, we believe
the [French windowing system] is anti-
consumer and puts all studios at
increased risk for piracy, which is why
the majority of the stakeholders agree
that it needs to be completely revised,”
Disney said.
The stand-off with Disney comes as
French cinemas have been struggling to
attract consumers back. Ticket sales for
the first nine months of this year were
about one-third lower than in 2019,
‘Black Panther: before the coronavirus pandemic, to cinemas, but also to production com-
Wakanda according to figures from the Centre panies because France’s distinctive
Forever’, above, National du Cinéma. Only 7.4mn tickets system of public and private financing
is released in were sold in September, the lowest tally for cinema is based on a tax on tickets as
France next for the month since the 1980s. well as contributions from broadcasters.
month. Disney’s Against that backdrop, Disney’s Fewer Hollywood blockbusters
films set for threat to cut off French cinemas from its mean less money for French cinema
release in 2023 blockbusters is being taken seriously by producers.
include ‘Indiana the industry and regulators. Falling Disney has already shown its willing-
Jones 5’ Everett ticket sales pose a direct threat not only ness to hold back some titles; the ani-
Collection/Alamy
mated movie Strange World, which will
hit US cinemas next month, will go
straight to Disney Plus in France. In
2023 Disney plans to release films
including Guardians of the Galaxy Vol. 3,
Indiana Jones 5 and The Little Mermaid.
In France, media companies must
negotiate their windowing with various
cinema industry groups, with the
accords then reviewed and issued by
regulators. In general, the more a com-
pany contributes to French cinema pro-
duction, the shorter window they can
negotiate.
In December 2021, pay-TV group
Canal Plus was the first to sign a deal,
which set a benchmark for later ones
with streaming groups. The Vivendi-
‘We believe backed company committed to invest
about €200mn in annual financing into
the [French French movies, and saw its window
windowing from theatrical release shortened to six
months from eight.
system] is Netflix later signed a deal under
anti- which it will contribute annual financ-
ing to French cinema production for the
consumer first time in exchange for reducing the
and puts all window to 15 months from 36 months
previously. Amazon agreed to 17
studios at months.
increased Such delays were far too long for Dis-
ney, given its greater reliance on movies,
risk for so it refused to agree a similar accord. It
piracy’ has since been trying to pressure the
industry bodies and French regulators
that have to ratify the windowing agree-
ments to come back to the negotiating
table.
Culture minister Rima Abdul-Malak
said in a TV interview in mid-Septem-
ber that she was in favour of “reopening
the discussions” on the windowing
rules, which she described as “not being
cast in stone”.
have never been more optimistic,”
Hamm said in a note to staff.
The shale tycoon said privatisation
would give the company “freedom to
explore” and grow “as we do our part to
help secure America’s energy independ-
ence without any encumbrances”.
The transaction would give Hamm
and his family full ownership of Conti-
nental, which he founded in 1967 and
took public in 2007 as the Oklahoma
City-based company emerged at the
forefront of the US shale revolution.
Continental is the largest oil producer
in the Bakken shale fields in the US
states of North Dakota and Montana
and in the past year has expanded into
‘We have all felt the limits
of being publicly held over
the last few years’
Harold Hamm
Wyoming and the Permian Basin of
Texas and New Mexico.
Hamm agreed to pay $74.28 a share in
cash to buy the 17 per cent of Continen-
tal that his family does not already own.
The $4.3bn offer announced yesterday
represents a 13 per cent premium on
Continental’s closing price in mid-June,
before he made a first bid for the com-
pany at $70 a share. Continental shares
were up 8.5 per cent to about $74 a share
at midday in New York.
But the transaction will be entirely
financed with Continental’s existing
cash on its balance sheet and debt,
which means Hamm will not be spend-
ing any additional money of his own.
The deal was approved by Continen-
tal’s board but drew immediate opposi-
tion from a leading shareholder, who
said Hamm’s new price was tantamount
to “stealing” the company’s assets.
Cole Smead, president of Smead Capi-
tal Management, Continental’s biggest
shareholder after the Hamm family,
told the Financial Times the new offer
still undervalued the assets and board
approval looked like a “backdoor deal”.
“It’s like playing an away game in bas-
ketball in a small town in the middle of
nowhere,” Smead said. “None of the calls
aregoingyourwaybecausetheref[eree]s
aren’t on your side. Where I come from,
we call these ‘homers’. I assume they call
themthesameinOklahoma.”
Hit hard by collapsing oil demand in
the early days of the coronavirus crisis
in 2020, Continental’s fortunes have
since soared as energy consumption has
recovered and crude prices have gained
since Russia’s invasion of Ukraine. In
June, Hamm said it was in the best inter-
ests of Continental to be delisted.
Analysts said Hamm’s expansion and
take-private move also reflected his
view that oil demand would keep rising
despite environmental concerns.

Energy Crypto

Japan’s Eneos seeks renewables acquisitions
ERI SUGIURA AND KANA INAGAKI
TOKYO
Eneos is on the hunt for acquisitions in
renewable energy despite the yen’s
plunge, as Japan’s largest oil group
pledged that Russia’s invasion of
Ukraine and the global energy crisis
would not reverse its shift away from
fossil fuels.
Eneos president Takeshi Saito said
Europe’s U-turn in coal policy following
the cut-off of Russian gas underscored
the need for a more practical approach
to the green transition.
“Europe had said no to coal [before
the Ukraine war] but now Germany is
burning it so they’re basically being
opportunistic,” said Saito, acknowledg-
ing the need for countries to prioritise
energy security.
He added: “We believe there will be no
change in the decarbonisation shift, but
it’s a matter of whether a realistic
approach will be taken or a dramatic
transition is made. As things stand now,
Europe is starting to think that it may be
problematic to push ahead too rapidly.”
In order for Japan to take a bigger role
in the path to net zero, Saito said compa-
nies had to develop advanced technol-
ogy for hydrogen and carbon capture
and storage. “I’m concerned if Japan has
that technology edge,” he said.
Eneos, which is worth $10.6bn, has
spent the past 130 years selling fossil
fuels. But since taking over as president
in April, Saito has called for “the second
founding of the company” by accelerat-
ing a shift towards cleaner sources of
energy.
Part of that transition also involves
the group’s decision in March to stop
purchasing crude oil from Russia.
The strategic shift by Eneos echoes
ambitious strategies laid out by its Euro-
pean rivals such as BP and Shell, and to a
lesser extent Chevron and Exxon in the
US, to become green businesses, but
critics have said these companies are
still spending only a fraction of their
capital on renewable energy.
The yen’s fall to a 32-year low has
made overseas acquisitions expensive
for Japanese companies, but Saito said
Eneos was still searching for deals to cre-
ate new businesses to be “a bridge” until
it achieved carbon neutrality.
“With the weaker yen, we need to pay
50 per cent more than usual so it’s not an
environment for merger and acquisi-
tions. But we want to become Asia’s
number one energy company . . . so we
will push ahead as long as we have finan-
cial strength,” Saito said.
He pointed to potential areas such as
Australia, south-east Asia and the Mid-
dle East to manufacture solar and other
renewables, as well as hydrogen.
In Japan, Eneos has built more solar
power plants and hydrogen stations,
and will shut down one of its refineries
in western Japan, and offload all of its
British oil assets in anticipation of a
declining demand for petrol.
SEC official wants clearer NFT jurisdiction
STEFANIA PALMA AND
PATRICK TEMPLE-WEST — WASHINGTON
US regulators have kept digital art
creators and investors in the dark
about which non-fungible tokens could
qualify as securities, according to SEC
commissioner Hester Peirce.
In an interview with the Financial
Times, the US stock market regulator’s
senior Republican member said some
NFTs could be regulated like stocks or
bonds. She called for the SEC to publish
more information on the market.
NFTs that include “governance
rights” or offer investors rights to
revenue streams could be captured by
US securities laws, Peirce said. Tokens
that are split and then sold could also
fall into this category. As retail investors
rushed to buy digital creations, “NFTs
are one particular area where we could
provide some guidelines”, she said.
“What would be the harm in us going
out with something like that?”
Peirce, one of five SEC members, has
often split with chair Gary Gensler over
cryptocurrency regulation. Gensler has
taken a tough stance against the crypto
market. He has urged digital asset plat-
forms to register with the regulator and
deems most tokens to be securities.
The SEC chair has resisted crafting
Hester Peirce has
called for clearer
guidelines from the
SEC on what
constitutes the
NFTs it regulates
new rules for crypto markets, arguing
existing laws are sufficiently clear. In
May, the SEC doubled the size of
its enforcement team looking at
cryptocurrencies, including NFTs.
“If an NFT were a security and
someone did make misrepresentations
about it, then they’ve got a securities
fraud kind of issue,” Peirce said. She
joined the agency in 2018 after research-
ing financial regulation at free-market
think-tank the Mercatus Center and
serving as an SEC counsel.
Her comments come as Yuga Labs,
the NFT pioneer and creator of the well-
known Bored Ape Yacht Club collection,
is reportedly being probed by the SEC.
The company said it was “well-
known” regulators had “sought to learn
more about” online decentralisation
and the blockchain, adding it was “com-
mitted to fully co-operating with any
inquiries along the way”. Peirce declined
to comment on the investigation.
NFTs, which use blockchain technol-
ogy to validate the ownership and
authenticity of digital artworks and
items, surged in popularity last year.
But calls for more regulation have
coincided with a slump in the NFT
market, where trading volumes have
tumbled since the beginning of the year.
Additional reporting by Tim Bradshaw in
London
Tuesday 18 October 2022 ★ FINANCIAL TIMES 9

COMPANIES & MARKETS

Toyota risks losing its Prius edge in

Financial services

shift from hybrid to fully electric cars
Japanese marque is betting on an untried leasing strategy to keep control of vital raw materials
ERI SUGIURA — TOKYO
PETER CAMPBELL — LONDON
Five months since Toyota started selling
its first all-electric car to compete
directly with Tesla, hardly any of them
have been seen on the road.
The rollout of the bZ4X sport utility
vehicle was intended as a watershed
moment for the world’s largest car-
maker by sales. Its first mass-produced
EV was Toyota’s answer to investor criti-
cism that it had been slow to embrace
the industry’s transition to electric.
Instead, the long-awaited debut was
hampered by a humiliating global recall
because of safety problems and supply
chain delays caused by the coronavirus
pandemic. With the rollout of the bZ4X
only just resuming, Toyota has spent
much of the year on the defensive and
under scrutiny for its lobbying against
rules designed to encourage a shift to
electric vehicles.
“Toyota is not correctly responding to
calls from the market to take a lead in
electric vehicles. Toyota needs to dem-
onstrate their leadership, otherwise
they could not only misrepresent their
green efforts but also lose investor confi-
dence,” said Satoru Aoyama, senior
director at Fitch Ratings.
For many years, Toyota could cope
easily with emissions limits on its fleet
set by regulators in Europe, the US and
China, largely thanks to its popular
hybrid range spearheaded by the Prius.
But tougher rules in major markets
mean it will have to sell significant num-
bers of battery-only models in the com-
ing years or risk large fines. It is also
being forced to rethink its strategy of
focusing on hybrids as the less polluting
answer during the EV transition.
Deloitte tops
Big Four in
study of racial
diversity after
hiring spree
STEPHEN FOLEY — NEW YORK
Deloitte has the most racially diverse
workforce of the Big Four accounting
firms in the US, an analysis of diversity
and inclusion reports shows, following
a hiring spree that swelled its employee
numbers by almost a quarter.
Rival PwC, meanwhile, ranks as having
the greatest percentage of female
employees among the four firms, based
on numbers it published yesterday, but
the increase in women in the workforce
has stalled.
The Big Four have touted progress
towards diversity goals as they engage in
a war for new recruits but their latest
reports continue to show significant
underrepresentation of women and
people from minority groups, particu-
larly at the higher echelons of the firms.
They also suggest that diverse candi-
dates are not being promoted in suffi-
cient numbers to close the gap quickly.
At Deloitte, the largest of the four
firms, 42 per cent of its now 80,000-
strong US workforce identify their race
as other than white, up 3 percentage
points on a year ago. At EY, 40 per cent
identify as other than white, down from
41 per cent, while at PwC it is 39 per
cent, up 3 percentage points in a year. At
KPMG, the smallest of the big four,
35 per cent identify as other than white.
Toyota has focused heavily on hybrids Toyota lags behind rivals in pure electric vehicles
Unit sales of hybrid cars (mn) As a % of total sales Global unit sales (’000) ‘If you move people up
3 30 Toyota Tesla Other proportionately, or lower
Forecast than that, you’re never
2022
2021 going to achieve a change’
2 20
2020 By another measure, Deloitte says the
Year

In Europe, where the vast majority of
Toyotas sold are hybrids, the company
will have to switch to selling zero-emis-
sion models only by 2035, and in some
cases by the end of this decade.
In North America, the group’s largest
market, company president Akio Toy-
oda recently said that meeting a pro-
posed US target for half of sales to be
electric vehicles by 2030 would be “very
difficult”.
For now, however, the going is good.
Despite supply chain issues, Toyota
enjoyed a record net profit of ¥2.8tn
($19.7bn) for the year ended in March,
up 27 per cent from a year earlier. Its
shares are up 43 per cent over the past
five years, compared with a 10 per cent
fall at Volkswagen and 28 per cent drop
at General Motors. Toyota sold 6.2mn
vehicles in the year to the end of August,
28 per cent of which were hybrids.
Japan’s largest carmaker has long
argued that a swift enforced shift to elec-
tric vehicles will increase emissions
because of the huge ramp-up in produc-
tion required. Hybrids, which run with a
modest battery and a small petrol
engine, provide a much cleaner interim
solution, it says.
Toyota chief scientist Gill Pratt told a
Financial Times summit this year that
steering the industry exclusively
towards electric cars that rely on large
batteries is “not a good idea if your goal
is to reduce carbon dioxide emissions
totally around the world as much as pos-
sible” and that EVs were “not the only
answer”.
But to guard against the risk of miss-
ing out on a revolution and of losing its
decades-old reputation as a pioneer in
green technology thanks to the Prius, in
December Toyota pledged to invest
$35bn in the shift to electric vehicles by
2030 and to make 3.5mn of them by the
end of the decade.
When Toyota launched the bZ4X five
months later, it came with an under-
whelming target to deliver only 5,000 in
its home market in the first year, and a
1 10
0 0
2011 2015
* Year to date
Sources: company; EV-volumes
Bumpy start: very unusual business model. In Japan,
Toyota’s bZ4X the car is not being sold to consumers
electric sport but leased, meaning the vehicles will be
utility vehicle returned to Toyota after the contract
has suffered ends — a maximum of 10 years.
setbacks as the Industry executives say this subscrip-
company shifts tion model should lower the risks and
to a leasing costs of electric vehicles for carmaker
model to keep and consumer, as well as give longer life
control of key to batteries and the much-in-demand
battery precious metals vital to building them.
materials, below Pratt told the FT summit Toyota
Qilai Shen/Bloomberg; Nhac
Nguyen/AFP via Getty Images
was “very concerned over the medium
term about [the industry] running out
of materials for battery supply”.
“What Toyota wants to do is to retain
batteries,” said a former Toyota execu-
tive. “Batteries are often said to have
near-zero value after a decade but Toy-
ota wants to collect ones which still have
70 to 80 per cent of capacities left after
the first use and reuse them.”
From Toyota’s perspective, a big ben-
efit of leasing rather than selling its EVs
is that it allows the company to keep
2019
2018
2017
2016
2015
0 500
20 22*
more lithium and other rare earth met- ‘Toyota
als in Japan, following a lesson it learnt
from the launch of the Prius in 1997. hopes the
Old Prius models are now found eve- leasing
rywhere from Wales to Mongolia, while
used Nissan Leaf EVs have made it as far model
as Russia and New Zealand. Nissan has enables it
also revealed plans to let Japanese driv-
ers rent its EVs instead of buying them. to keep
Sanshiro Fukao, a senior fellow at the control of
Itochu Research Institute, said retaining
batteries has become a strategic imper- batteries
ative. “Toyota hopes the leasing model and
enables it to keep control of batteries
and eliminate any source of outflow, as eliminate
the lack of battery materials may any source
threaten business continuity.”
For customers, another concern of outflow’
about electric vehicles is whether the
batteries will degrade over time and
whether they will hold their value when
the time comes to sell.
These factors and a lack of charging
infrastructure mean that in Japan, the
world’s third-largest auto market, EVs
accounted for just 1 per cent of car sales
last year, compared with Germany’s 26
per cent, China’s 16 per cent and 4.6 per
cent in the US, according to the Interna-
tional Energy Agency.
“The Japanese car market is still
strongly focused on hybrids while the
international one is rapidly moving to
electric vehicles,” said Sandra Roling,
head of transport at Climate Group, a
non-government organisation. “Failing
to be part of this change puts Japanese
industry at a serious disadvantage.”
Hiroyoshi Ninoyu, president of Toy-
ota car parts supplier Tokai Rika, said a
1,000 1,500
Unit sales (’000)
subscription service was one way for
Toyota to demonstrate the merits of
electric vehicles to Japanese consumers
but expressed doubts that leasing would
take root in a country where consumers
are used to owning vehicles.
Takaki Nakanishi, a veteran automo-
tive analyst who runs his own research
group, said the company needed to
experiment with a rental service to find
a profit-generating business model for
electric vehicles.
“Currently no one enjoys economic
benefits from EVs,” Nakanishi said, cit-
ing the high battery costs for carmakers
as well as the hurdles faced by consum-
ers buying and using electric vehicles.
Ford, for example, has said the Mustang
Mach-E costs $25,000 more to produce
than an equivalent petrol-powered
Edge SUV. “That is why Toyota wants to
test a new business model that changes
people’s behaviour . . . But to do this
trial, Toyota needs batteries to come
back from consumers and a subscrip-
tion model allows this.”
But first, Toyota needs to deliver its
electric vehicles. In June, the company
warned that the wheels of the bZ4X
could fall off because of problems with
bolts. It later discovered a flaw with the
car’s airbags. Starting this month, it is
producing the vehicles again, having
fixed the flaws.
“The recall has been a major setback
for Toyota,” said Nakanishi. “Toyota is a
challenger when it comes to EVs. The
company had been too arrogant to think
they could easily succeed with EVs
because they had done so with hybrids.”
overall percentage of racial and ethnic
diversity at the firm is 47 per cent. It
asks employees for their ethnicity and
race separately.
By contrast, figures for female
employment put Deloitte at the bottom
of the quartet, with women accounting
for 44 per cent of its workforce com-
pared with 45 per cent at KPMG, 47 per
cent at EY and 48 at PwC.
Although it tops the Big Four, the per-
centage of women in the PwC US work-
force fell from 49 per cent last year, and
only 47 per cent of entry-level recruits
were female, far from its goal of reflect-
ing the 56.5 per cent of US higher educa-
tion enrolments.
Ahead of the publication of its annual
diversity report yesterday, Shannon
Schuyler, chief purpose and inclusion
officer of PwC US, said minority
employees were still failing to be pro-
moted in sufficiently large numbers to
close gaps at higher levels of the firm.
The number of black employees at
PwC US rose from 6 to 7 per cent, but
they accounted for 5 per cent or less of
the promotions from associate and sen-
ior associate level in the past year.
“If you move people up proportion-
ately, or slightly lower than that, you’re
never going to achieve a change in repre-
sentation,” Schuyler said. “This past
year has been about working to engage
the majority . . . because they need to
be a part of this and they need to realise
that it’s not a zero-sum game.”
Among PwC’s US partners, 18 per cent
identify as other than white, while the
figures are 17 and 15 per cent at EY and
KPMG respectively. Deloitte does not
split out partners in its diversity report.
The firms have slightly different
methodologies and lags to reporting
their data. Deloitte and PwC use their
fiscal year-ends in May and June 2002
respectively, while EY’s report this year
presented figures as of July 2021.
KPMG’s most recent diversity report
was published in December, referencing
data from September 2021.

Financials

Deutsche Bank dropped football club Hertha Berlin as a client over links to Windhorst
OLAF STORBECK — FRANKFURT
ROBERT SMITH — LONDON
Deutsche Bank ditched Hertha Berlin
as a client over the Bundesliga football
club’s links to financier Lars Wind-
horst, after scandals forced the Ger-
man lender to step up its compliance
regime.
The bank made the decision last year,
according to four people familiar with
the matter, after the Financial Times
reported that Windhorst was under
investigation over potential violations
of the country’s banking act following a
criminal complaint by German financial
watchdog BaFin. The last Hertha
account at Deutsche was closed
recently, the people said.
The move was a result of Deutsche’s
tightened anti-money laundering con-
trols, two of the people told the FT.
Deutsche was under pressure follow-
ing public rebukes by the regulator over
scandals including its belated reporting
of suspicious transactions processed for
Danske Bank’s Estonian branch and its
acceptance of disgraced financier
Jeffrey Epstein as a client.
In an unprecedented move in 2018,
BaFin mandated a special monitor to
supervise the implementation of the
improvements it had demanded.
Deutsche subsequently stepped up its
controls and invested heavily in better
monitoring and more staff.
Stefan Simon, the bank’s chief admin-
istrative officer, told the FT last year
that Deutsche had severed relationships
with “a very small number” of wealthy
clients with criminal records in the
wake of the Epstein scandal.
Hertha, a top-tier football club, had
been a longstanding corporate banking
client. Windhorst, who in 2010 was con-
victed of “breach of trust” by a German
court, started to build a stake in the loss-
making club in 2019, eventually acquir-
ing 64.7 per cent for €374mn.
Despite owning a majority stake,
Windhorst does not have a say over the
daily operation of the club. Windhorst
this month announced he would termi-
nate his involvement with Hertha after
allegations, which he denies, that he had
hired corporate spies to try to force out
the club’s president.
According to people familiar with the
matter, Deutsche told Hertha that its
decision to drop the club was not linked
to direct evidence that raised potential
issues. However, the bank pointed out
that the additional measures required
to monitor the transactions did not jus-
tify the revenue generated with the club.
The move was a result of
Deutsche’s tightened
anti-money laundering
controls, two people said
Months before Deutsche decided last
year to not do business with Hertha,
Windhorst was courting the German
lender as he was keen to receive loans
for his companies, according to two peo-
ple familiar with the matter.
While Windhorst believed big banks
would be more willing to transact with
him because a German criminal convic-
tion he received in 2010 had been
expunged from the record after 10
years, Deutsche rebuffed his overtures.
People familiar with the matter told
the FT that Windhorst around that time
also met Deutsche chief executive Chris-
tian Sewing at least once, and ex-
changed WhatsApp messages with him.
The use of non-monitored communi-
cation is forbidden by the bank’s code of
conduct and regulatory rules, and Deut-
sche was one of several banks fined
$200mn this year by US regulators for
failing to monitor employees’ commu-
nications on unauthorised messaging
apps. It is unclear whether Sewing’s
messages with Windhorst were part of
the US regulatory probe as Windhorst
himself was never a client and people
familiar with the matter said their con-
tent was not business-related.
Sewing and Deutsche’s nine other
most senior executives this year volun-
tarily waived €75,000 each in variable
pay to show management was bearing
some blame for the use of unapproved
communications platforms.
Hertha declined to comment. Deut-
sche said it did not “comment on actual
or potential client relationships”.
Windhorst’s Tennor Holding said the
financier did not have knowledge of
Hertha’s banking relationships and
could not comment. The spokesman
added that Windhorst did not discuss
the “business activities of Deutsche
Bank” with Sewing on WhatsApp, and
declined to comment further.
10 ★ FINANCIAL TIMES Tuesday 18 October 2022

COMPANIES & MARKETS

Technology. Start-ups Fixed income

Rapid grocery apps no
longer deliver for investors
The venture capital-induced
boom in courier shopping
groups has ended abruptly
TIM BRADSHAW — LONDON
As nervous consumers avoided super-
markets during the Covid-19 pandemic,
tech entrepreneurs spied a once-in-a-
generation opportunity to reinvent the
humble grocery run.
By mid-2021, more than a dozen start-
ups had launched across the US and
Europe promising to deliver groceries
via courier in as little as 10 minutes.
But by summer 2022, fewer than half
of those companies were still around.
Now, just a handful of bigger perform-
ers — led by Istanbul-based Getir and
Philadelphia’s Gopuff — are fighting on.
This is despite huge losses, a funding
drought and increased competition
from more established food delivery
services, including DoorDash, Uber and
Deliveroo, as well as some traditional
supermarkets.
Gorillas, one of the largest operators
in Europe, could be the next to go: the
Berlin-based company is in talks to sell
to Getir after burning through almost all
of the $1.3bn it raised in the past two
years.
Since 2020, investors have poured
more than $5.5bn into these “quick
commerce” companies globally, accord-
ing to funding tracker Dealroom.co.
But New York-based Buyk, Fridge No
More and Zero Grocery have already
shut down. In Europe, Weezy, Fancy,
Dija, Blok and Cajoo have been taken
over by larger rivals. Even well-funded
Flink and Jokr have been forced to
reverse their expansion plans.
Some investors insist that these start-
ups were just unlucky to be caught on
the wrong side of a sudden change in
market sentiment this year, driven by
rising inflation and Russia’s invasion of
Ukraine.
“The pendulum went from one
extreme to the other: from growth at all
costs to basically [investors wanting
start-ups] being profitable at day one,”
said Dominique Locher, who has backed
Jiffy, a London-based delivery start-up
that pivoted to selling its software to
other merchants, and Toters, a food app
operating in Lebanon and Iraq.
However, others question whether
the business model — which typically
involved building small warehouses or
“dark stores” in urban locations, hiring
dozens of couriers and showering local
residents with discounts to stimulate
usage — can ever be profitable, espe-
cially when most consumers are feeling
the pinch.
“With cost of living pressures, con-
sumers may increasingly turn away
from impulse buys towards more regi-
mented shopping regimes,” said con-
sultants at KPMG in a recent report on
the sector. “Those that continue with
[using] quick commerce may become
more ruthless about jumping between
the best bargains, making it even harder
to make a profit.”
Of the many companies to chase the
rapid grocery crown, few went harder
Gilts rally as
Hunt aims
to calm UK
trading jitters
TOMMY STUBBINGTON — LONDON
HUDSON LOCKETT — HONG KONG
Gilts and sterling rallied yesterday after
Jeremy Hunt, the new UK chancellor,
took a wrecking ball to his predecessor
Kwasi Kwarteng’s controversial
tax-cutting plans in an effort to mollify
financial markets.
The 30-year gilt yield tumbled 0.41
percentage points to 4.37 per cent,
reflecting higher prices.
The moves reversed the majority of a
surge late on Friday after investors
decided UK Prime Minister Liz Truss
had not gone far enough by sacking
Kwarteng and ditching an £18bn
corporation tax cut.
Thirty-year government borrowing
costs remain far above the level of about
3.75 per cent seen before last month’s
£45bn of unfunded tax cuts sent
markets into a tailspin and triggered a
liquidity crisis for UK pension funds.
Shorter-dated gilt yields also fell
sharply, while the pound gained 2.2 per
cent against the dollar to trade at
$1.1418.
In a statement yesterday, Hunt con-
firmed that he was scrapping £32bn of
those cuts and scaling back energy sub-
sidies offered by last month’s “mini”
Budget. The pound and UK government
bonds extended their gains as he spoke.
Gilt selling had reignited late on
Friday as the Bank of England’s
emergency market intervention came
‘He’s done away with the
Tougher road: than Gorillas. Founded in Berlin early in it generated in net revenue, according to Gorillas declined to comment. unapologetic tone and
Gorillas the pandemic and led by former Bain people who have seen the figures. Gorillas’ rivals are eager to distance
expanded consultant Kağan Sümer, Gorillas Marketing spending averaged €8 for themselves from a company that
underlined that the
rapidly, but its reached “unicorn” status — a valuation every order placed by Gorillas’ custom- became emblematic of the era of profli- government is listening’
cash burn has of $1bn — in less than a year, the fastest ers in the first half of the year. It burnt gate spending and easy money for start-
left it needing a for a German start-up. more than €60mn a month in May, June ups that ended abruptly. to an end, with the central bank having
buyer In early 2022, as the number of its and July, including what it described as “The model can absolutely work as purchased just £19bn of a potential
Piroschka van de Wouw/
Reuters
“dark stores” surpassed 200, Sümer “one-off” restructuring costs that long as you have the right strategy and £65bn of long-dated bonds.
planned to raise another $700mn. But repeated over multiple months. proposition,” said Steve O’Hear, senior The BoE reiterated yesterday that the
that funding has yet to materialise and In total, Gorillas’ cash burn in the 12 vice-president of strategy at Zapp, a UK- programme had finished but that a new
by the summer, Gorillas was cutting based grocery app that has raised more short-term lending facility unveiled last
hundreds of staff and abandoning mar- than $300mn. week to help ease liquidity pressures at
kets including Belgium, Spain and Italy.
Gorillas was emblematic O’Hear said that attracting customers pension funds would continue until
In May, Gorillas insisted it had “shifted of the era of profligate “who value and are willing to pay for a November 10.
our focus from hyper growth to a clear high level of convenience” is key, some- Yesterday’s announcement from
path to profitability”.
spending and easy money thing he said that handing out vouchers Hunt should ease the pressure on the
Shortly afterwards, it began to search for fast folding start-ups rarely achieves. Zapp’s focus on wealth- BoE to intervene further in markets,
for a buyer. Figures from Gorillas shown ier customers includes a high-end “Bou- said Antoine Bouvet, a rates strategist at
to potential acquirers demonstrate how months to July was more than €750mn, tique” range that offers luxury hand ING.
costly that “hyper growth” has been. according to its presentation to poten- wash, candles and champagne, helping “This is all very positive for markets,”
Over the past 12 months, it was, on aver- tial admirers. Many who saw the figures to boost the app’s average order value to Bouvet said. “It’s not just the numbers
age, losing more than €1.50 for every €1 believed it could not survive until the more than £30. but the fact he’s done away with the
end of the year without new funding or a Nonetheless, Zapp has pulled out of unapologetic tone and underlined that
NY grocery apps are seeing their growth slow radical reduction in losses. “I don’t several markets in recent months to the government is listening to markets.
think any sane person would ever buy focus on London as — like every grocery But ultimately you have to remember
or in some cases reverse this company,” said one. delivery app — it tries to conserve as that market confidence has been
Gorillas’ sales in Aug 2021=100 However, one Gorillas investor much of its remaining capital as shattered and it’s going to take some
Getir Gopuff insisted that its burn rate was now sev- possible. time to rebuild.”
1,500 1,500 eral times lower than in early 2021 and Toters chief executive Tamim Khalfa Despite the fall in yields, pension
1,000 1,000 that it was on track for an annualised believes that venture capital investors funds said they were continuing to sell
500 500 rate of €200mn by the end of the year, in apps such as Gorillas and Getir bear gilts in order to replenish their cash
0 0 excluding markets it has exited, on as much responsibility as his fellow buffers.
Aug 2021 2022 Aug Aug 2021 2022 Aug annualised revenues of €450mn. “Not founders. “It was a bit calmer this morning but
Gorillas JOKR even Uber scaled to over $500mn reve- “VCs enabled some of that behav- the selling has not abated,” said Mike
1,500 1,500 nue that quickly,” this person said. iour,” Khalfa said. “When you are being Our global Eakins, chief investment officer of
1,000 1,000 Gorillas still has alternatives on the handed so much money and being team gives you Phoenix, the £270bn manager that
500 500
table if its merger talks with Getir fail, asked to take over the world quickly market-moving serves 13mn customers. “We are still
0 0 the investor added, including term before someone else does, that’s the root news and views, seeing funds having to sell their gilts and
Aug 2021 2022 Aug Aug 2021 2022 Aug sheets for new funding that would cause.” 24 hours a day we think there’s more to run on that.”
Source: YipitData
ensure its survival until at least the end Additional reporting by Dave Lee in San ft.com/markets Additional reporting by Josephine Cumbo
of next year. Francisco See Lex

Currencies Currencies

China state banks step up dollar sales to
boost renminbi ahead of party congress
HUDSON LOCKETT — HONG KONG
China’s state banks stepped up selling
of the dollar yesterday, supporting
the renminbi against the surging US
currency as the Chinese Communist
party’s 20th congress got under way in
Beijing.
Traders in China said large state-run
banks were swapping renminbi for US
dollars in the country’s forwards
market, then selling the dollars in its
onshore markets in an intervention to
bolster the domestic currency.
The renminbi was trading 0.2 per cent
lower against the dollar yesterday at
about Rmb7.2. But the Chinese currency
has fallen almost 12 per cent against
the dollar this year, with weakness
becoming more pronounced after regu-
lators relaxed informal foreign exchange
trading limits in late September.
That move was followed by warnings
from authorities discouraging bets on
sharper falls to avoid runaway deprecia-
tion — part of an effort to slow the pace
of depreciation rather than mount a
strong defence of any specific level for
the renminbi’s dollar exchange rate.
“This kind of intervention won’t
usually have too big of an impact in the
long term but it will have an immediate,
short-term impact,” said one Shanghai-
based foreign exchange trader with a
western investment bank.
The trader added that Beijing’s
message to investors about its preferred
pace for the renminbi’s decline was
“pretty clear” given the central bank’s
strong preference for setting the daily
midpoint for the currency’s dollar trad-
ing band above market expectations.
The People’s Bank of China, which
The renminbi has fallen almost 12%
against the dollar this year
every morning announces the midpoint
from which the currency can trade 2 per
cent in either direction against the
dollar, has for almost two months set a
stronger trading range than the consen-
sus estimate compiled by Bloomberg.
Another Shanghai-based trader, who
said the flow of dollar sales from state
banks had picked up yesterday, added
that Beijing was expected to prevent
more serious depreciation this week
given the political timing.
“The congress is meeting,” the trader
said, “so the renminbi may be kept at
around this level of Rmb7.2 [against the
dollar].”
Another trader at a Hong Kong lender
said state banks frequently bought
renminbi and emphasised that the
pick-up in dollar sales was not a
“desperate move” related to the timing
of the congress in Beijing.
Rather, the trader said, it reflected
broader efforts to mitigate the impact of
an interest rate differential that has
opened between dollar and renminbi
assets with the former delivering higher
returns thanks to repeated interest rate
rises by the US Federal Reserve.
Additional reporting by Cheng Leng
Yen’s weakness triggers fresh questions
over further Bank of Japan intervention
KANA INAGAKI AND HARRIET CLARFELT
The yen touched a 32-year low against
the US dollar yesterday, fuelling debate
among analysts about how much fur-
ther the Japanese currency must fall
before Tokyo officially intervenes
again.
At its weakest point, the yen slipped to
¥148.89 yesterday — leaving it weaker
than the point at which authorities
intervened to push it up last month for
the first time since 1998.
“In the near term, we need to watch
out for the Japanese authorities con-
ducting another intervention before the
dollar reaches ¥150,” Nomura analysts
wrote, adding that one market-moving
catalyst could be Japan’s inflation data
due for release on Friday.
Analysts at ING said they were “not
making the argument that there is a
clear line in the sand at 150 for
Japanese authorities”.
But they added that allowing a move
above ¥150 “may well trigger an
acceleration of the yen sell-off, which is
exactly what Japan is trying to avoid”.
The yen has lost more than 20 per
cent of its value against the dollar in
2022 even after the Bank of Japan sold
$20bn to halt its plunge in September.
Central to the yen’s decline is the
widening gulf between the BoJ’s ultra-
loose monetary policy and the tighten-
ing trend of most other big central
banks.
The Federal Reserve has led the
charge on lifting interest rates
aggressively this year to curb inflation,
‘In the near term, we need
to watch out for another
intervention before the
dollar reaches ¥150’
raising US borrowing costs by 0.75
percentage points over each of its past
three meetings.
Peers including the Bank of England
and the European Central bank have
also tightened policy vigorously to stem
rapid price growth.
By contrast, the BoJ has held rates
below zero and stuck with its policy of
capping longer term bond yields —
known as “yield curve control”.
Japan is now the only remaining
country in the world with negative-
yielding debt.
In an interview with the Financial
Times this month, Japanese prime
minister Fumio Kishida backed the
country’s loose policy despite the yen’s
plunge to its lowest levels in inflation-
adjusted terms since the 1970s.
Some traders yesterday suggested
that Tokyo might have stepped in
behind the scenes last week to
strengthen Japan’s currency.
Using the BoJ’s larger than expected
daily account deficit forecast, traders
speculated that authorities spent about
¥1.4tn ($9.3bn) to prop up the yen last
Thursday when the yen briefly rose to
¥146.48 to the dollar after sinking to
¥147.67 following a hotter than
expected US inflation report.
Officials declined to comment on
whether they had intervened again with
government data only expected to be
released in February.
But if the finance ministry had
conducted such a stealth intervention,
the impact was shortlived.
Within a few minutes, the yen began
to weaken again on Thursday before
sliding as much as 1.1 per cent on Friday.
Tuesday 18 October 2022 ★ FINANCIAL TIMES 11

COMPANIES & MARKETS

The day in the markets A will to tackle

What you need to know
global challenges
3 Wall Street stocks rally as traders look
needs more tools
to corporate earnings
Bank of America’s shares rise on better than expected earnings
3 Gilts and sterling advance after action Share price ($)
from new UK chancellor to calm markets
3 Dollar retreats after stellar run so far
in 2022
50
Mohamed El-Erian
Wall Street stocks rose sharply yesterday
as better than expected earnings from
45 Markets Insight
Bank of America and an abrupt U-turn on

A
tax cuts from the UK government buoyed
market sentiment. s the global financial disruptive dollar strength and pushed an urgent need again for visionary G20
40
The S&P 500 was up 2.7 per cent by crisis shook the world, global yields higher. co-ordination, the ability to act is hin-
the early afternoon in New York, while the government leaders came The IMF was cited for lapses in its sur- dered by various geopolitical tensions.
tech-heavy Nasdaq Composite advanced to Washington 14 years ago veillance and policy co-ordination roles. Officials also feel that little can be
3.3 per cent. to compare notes and set The fund and the World Bank were done to stop the adverse spillovers of
Across the Atlantic, the pan-regional 35 the stage for policy actions that would pressed to do more for vulnerable policies implemented by some of the
Stoxx Europe 600 rose 1.8 per cent and pull the world’s economy back from the developing countries. Adding to all this world’s most systemically important
London’s FTSE 100 gained 0.9 per cent. brink. was the notion that, just as in 2008, it policymakers. This is particularly the
Those rallies came after Bank of Policymakers met in Washington last was once again the advanced countries case when it comes to the Fed.
America posted stronger than expected 30 week with the global economy once that had become the world’s main Many country officials, especially
third-quarter results, pointing to Jan 2022 Oct more in rough waters that leave the sources of volatility and systemic risks. from the developing world, have gone
“resilient” US consumer clients. poorest the most vulnerable to unfold- With all that in play, the mood in home worried that a late Fed has no
Data as of lunchtime in New York
Expanding profit margins from Source: Refinitiv
ing shocks. But recognition at the annual Washington was as grim as the one I choice but to continue on an aggressive
consumer lending helped to temper meetings of the IMF and World Bank of remember from the October 2008 rate-rising cycle that imposes on them
falling investment banking revenues. difficult struggles ahead for so many annual meetings. one or more unpleasant policy options.
Investors are watching corporate “From a broader perspective, you could former chancellor Kwasi Kwarteng failed to trigger the policy momentum Back in 2008 though, the analysis of These include: tightening monetary
earnings closely for signs of strain from say that all this has happened as we were announced Westminster’s fiscal plans. seen more than a decade ago. and fiscal policy beyond what the
high inflation and rising borrowing costs. ‘due’ a break,” he added, after significant The pound rose 2.2 per cent against Many policymakers did share com- domestic economy would otherwise
“The resilience of the consumer in the sell-offs in stock markets this year. This the dollar to $1.141. Sterling had fallen 1.4 mon concerns about a global recession, The mood in Washington warrant, depleting international
US and the UK has been a big support for “could [lead to] some kind of stabilisation per cent on Friday after Prime Minister inflation, debt, financial instability and was as grim as the one I reserves, allowing a further currency
earnings resilience,” said Eren Osman, a or even a bear rally for stocks while we Liz Truss sacked Kwarteng and the lack of proper policy co-ordination. depreciation that adds to inflation and
senior investment manager at Arbuthnot wait for . . . lower earnings estimates”. abandoned a corporation tax cut. But with few new tools, let alone com- remember from the makes it harder to pay back
Latham & Co. “That’s going to come Gilts rallied after new UK chancellor Elsewhere in currencies, the Japanese prehensive solutions getting much trac- October 2008 meetings international debts, and/or imposing
under increasing pressure as we see Jeremy Hunt, in a bid to reassure yen weakened to ¥148.89 against the tion around policy tables, there is little distortive foreign exchange controls.
inflation remain high.” markets, abandoned many of the dollar, a fresh 32-year low. assurance of a follow-up similar to the As important as it is, the most critical
But robust third-quarter reports and government’s fiscal proposals unveiled The dollar, which has risen 18 per cent April 2009 G20 heads of government big common problems, the fear of yet message of these annual meetings is
the UK government’s “sincere apology” last month. As gilt prices rose, 30-year so far in 2022 against its peers due to summit that helped avoid large-scale bigger ones ahead and the respect not that the global economy faces
on its disruptive tax cuts both supported yields dropped more than 40 basis points climbing US interest rates and its status and long-lasting economic damage. for collective responsibility acted as treacherous times ahead that threaten
markets, said Thomas Thygesen, head of to 4.36 per cent but remained above their as the world’s reserve currency, slipped There was no lack of warning signs in catalysts for serious policy work. to be particularly damaging to the most
strategy at SEB Research. levels of about 3.75 per cent before 0.9 per cent. Ian Johnston the run-up to last week’s meetings. That culminated in UK prime minis- vulnerable countries and the weakest
Inflation remained stubbornly high. ter Gordon Brown quarterbacking the members of society.
Recession fears were mounting. April G20 summit that delivered a bold It is that the tools, mechanisms and
Markets update Financial markets were volatile. and co-ordinated policy response that frameworks for collective action are
The UK had experienced disruptions averted a devastating global depression. struggling; and that the need for each
more familiar to struggling developing Given the insufficiency of tools, much country to rely heavily on whatever
countries. And in its update of its World more will need to be done in the months individual relief they can muster will
US Eurozone Japan UK China Brazil Economic Outlook, the IMF had just ahead for a similar outcome this time. inevitably lead to a suboptimal outcome
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa warned that “the worst is yet to come”. Top economic officials are going back for them and for the world as a whole.
Level 3679.84 1577.43 26775.79 6920.24 3084.94 114339.11 There was also an active blame game. to their capitals with the dispirited view Hopefully, this will then serve as the
% change on day 2.70 1.79 -1.16 0.90 0.42 2.02 Most of the participants pointed the that the global economy may slip into beneficial catalyst that the October
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ finger at the adverse effects of Russia’s recession. Smooth global financial 2008 meetings ended up being.
Level 112.833 0.982 148.740 1.143 7.204 5.271 invasion of Ukraine. Many of them also market functioning cannot be taken for
% change on day -0.422 0.718 0.253 1.600 0.172 -0.359 complained that the speed and scale of granted and, with debt also an issue, the Mohamed El-Erian is president of Queens’
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond the US Federal Reserve’s catch-up phenomenon of “little fires everywhere” College, Cambridge, and an adviser to
Yield 3.955 2.268 0.248 3.974 2.704 12.512 interest rate rises had turbocharged is likely to spread. Even though there is Allianz and Gramercy
Basis point change on day -5.830 -7.700 -0.120 -35.700 0.500 -4.500
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 372.12 92.10 86.02 1649.30 18.77 3583.00
% change on day 2.16 0.51 0.48 0.07 -2.14 -0.91
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
4480 1760 7680

1680 7360
4160
1600
3840 7040
1520
| | | | | | | | |
3520 || | | | | | | | | | | | | | | | | | | 1440 || | | | | | | | | | | | | | | | | | | 6720 | | | | | | | | | | |

Aug 2022 Oct Aug 2022 Oct Aug 2022 Oct

Biggest movers
% US Eurozone UK
Dish Network 8.56 Volkswagen 4.76 British Land 5.19
Tesla 7.26 Tenaris 4.66 Persimmon 4.83
Ups

Netflix 6.89 Renault 4.07 Land Securities 4.77

Paycom Software 6.45 Gecina 3.90 Int Consolidated Airlines S.a. 4.72
Expedia 6.17 Ses 3.88 United Utilities 4.38
%
Fox -7.77 Carlsberg -1.28 Hargreaves Lansdown -1.94
Fox -6.74 Beiersdorf -0.25 Haleon -1.72
Downs

Charles Schwab (the) -3.78 Air Liquide -0.10 Bp -1.23

Kroger Co (the) -1.90 Cnh Industrial -0.04 Pearson -1.16
Altria -1.26 Edf 0.00 Coca-cola Hbc Ag -0.83
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

Oil and gas group Continental Resources A boost in revenue helped lift Norway’s Online furniture retailer Made.com, which
rallied on news that it had entered into an Nel with the renewable energy group has put itself up for sale, climbed on
agreement to be acquired by its majority announcing a contract worth NKr600mn announcing that it had “invited a select
shareholder. ($56.8mn) from Woodside Energy for a number of parties to progress towards
The Hamm family offered $74.28 per proposed hydrogen project, H2OK, in firm offers by the end of October”.
share, which was almost 9 per cent higher Oklahoma. Commercial broadcaster ITV rose
than Continental’s closing price on Friday H2OK was the Australian company’s sharply after the Financial Times
and more than $4 above a June bid. first hydrogen scheme in the US and reported that it was contemplating selling
In more dealmaking, Archaea Energy would utilise Nel’s alkaline electrolyser a stake in its production arm.
surged on news that BP would be buying equipment. Citi said a deal would be “meaningfully
the biogas producer for $26 per share, a A sharp slide in profits pushed accretive” to the broadcaster’s valuation,
54 per cent premium on Friday’s closing Sweden’s Mips down a fifth. The cycle calculating that the equity value on ITV
price. helmet maker reported operating profits Studios alone would be “around £3.2bn”.
The transaction, which gave Archaea of SKr37mn ($3.3mn) for the three ITV was down more than 40 per cent
an enterprise value of $4.1bn, was months ending September, down more this year before yesterday’s jump.
expected to close by the end of 2022. than 66 per cent year on year. Oil and gas explorer Wildcat Petroleum
Electric vehicle start-up Canoo rose In a sign that the pandemic-triggered soared after signing a memorandum of
sharply after announced a “binding scramble for cycles was waning, chief understanding to work with Sudan on
order” for 9,300 units from Kingbee, a van executive Max Strandwitz said Mips “had “the development and commercial
rental group. underestimated the speed and the exploitation of hydrocarbon assets”.
Fox Corp sank to the bottom of the magnitude of the slowdown in the bike A cut to its outlook sent MJ Hudson
S&P 500 benchmark following reports sector”. tumbling with the asset manager
that media mogul Rupert Murdoch Dutch construction company Royal admitting that it was “unlikely to be in a
wanted to reunite the TV company with BAM sank after disclosing it was “the position to meet prior guidance”.
News Corp, the owner of newspapers subject of an investigation relating to The UK government’s U-turn on its
such as The Wall Street Journal. potential irregularities at some already “mini” Budget buoyed housebuilders.
Murdoch sought an all-share merger. completed projects”. Jeremy Hunt, the new chancellor,
The news prompted Credit Suisse to It was “fully co-operating” with the scrapped the bulk of his predecessor’s
downgrade Fox from “buy” to “neutral”, authorities, it added. measures but left a £1.5bn stamp duty cut
arguing that “the merger would not Amsterdam’s Fastned jumped on news unchanged.
resolve Fox’s need for greater video/ of a €75mn “strategic investment” by The survival of this property sales tax
streaming scale and the pivot seems a Schroders Capital, which represented a reduction propelled Persimmon, Taylor
tacit admission of challenges for Fox”. 10.6 per cent stake in the fast-charging Wimpey, Barratt, Berkeley and Vistry
Ray Douglas company. Ray Douglas higher. Ray Douglas
12 ★ FINANCIAL TIMES Tuesday 18 October 2022

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-1.16% -0.923%
2.70% 3.47% 1.81% 0.90% 1.79% 0.15% 2.16% 0.718% 1.600% 0.253% 0.22% 0.07%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Sep 18 - - Index All World Sep 18 - Oct 17 Index All World Sep 18 - Oct 17 Index All World Sep 18 - Oct 17 Index All World Sep 18 - Oct 17 Index All World Sep 18 - Oct 17 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
3,873.33 19,560.16 7,282.07 28,614.63 2,382.78
12,741.26 12,649.03
18,685.19 6,920.24 2,219.71
3,679.84 26,775.79

Day 2.70% Month -12.95% Year -16.97% Day 2.06% Month -7.00% Year -8.72% Day 0.90% Month -8.35% Year 0.23% Day 1.70% Month -3.36% Year NaN% Day -1.16% Month -7.48% Year -12.24% Day 0.32% Month -10.95% Year -29.32%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
46,769.78 7,984.70 18,761.69 3,268.29
11,448.40 45,951.69 1,612.80
1,577.43
7,557.10
10,679.11 16,612.90 3,015.75
Day 3.47% Month -15.91% Year -28.99% Day 2.12% Month -4.48% Year -9.78% Day 1.79% Month -8.41% Year -9.83% Day 2.37% Month -9.37% Year -13.74% Day 0.15% Month -15.63% Year -33.05% Day -0.78% Month -6.94% Year -1.63%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
6,077.30 6,040.66 22,110.89 59,934.01
30,822.42 113,161.52 3,235.59 58,410.98
30,172.17 109,953.65 21,319.73
3,084.94

Day 1.81% Month -10.47% Year -12.74% Day 2.02% Month 2.41% Year 4.90% Day 1.83% Month -7.01% Year -8.06% Day 1.86% Month -5.34% Year -17.03% Day 0.42% Month -5.31% Year -14.64% Day 0.85% Month -2.07% Year -1.02%

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 139952.91 137290.74 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 23179.80 22757.68 Philippines Manila Comp 5970.33 5904.75 Taiwan Weighted Pr 12966.05 13128.12 Cross-Border DJ Global Titans ($) 397.39 386.89
Australia All Ordinaries 6854.30 6948.60 Czech Republic
PX 1144.01 1147.15 FTSE Italia Mid Cap 35738.58 35182.38 Poland Wig 46999.39 46570.39 Thailand Bangkok SET 1571.40 1560.78 Euro Stoxx 50 (Eur) 3443.31 3381.73
S&P/ASX 200 6664.40 6758.80 Denmark OMXC Copenahgen 20 1601.68 1591.96 FTSE MIB 21319.73 20930.81 Portugal PSI 20 5425.88 5340.00 Turkey BIST 100 3844.44 3626.96 Euronext 100 ID 1147.23 1127.81
S&P/ASX 200 Res 5316.50 5426.90 Egypt EGX 30 10048.88 9853.74 Japan 2nd Section 7228.27 7239.06 PSI General 4134.30 4060.32 UAE Abu Dhabi General Index 9222.93 9251.11 FTSE 4Good Global ($) 8866.41 8658.32
Austria ATX 2789.63 2749.82 Estonia OMX Tallinn 1672.47 1674.43 Nikkei 225 26775.79 27090.76 Romania BET Index 10786.70 10670.83 UK FT 30 2278.10 2232.70 FTSE All World ($) 372.12 364.24
Belgium BEL 20 3454.10 3387.10 Finland OMX Helsinki General 10317.49 10119.53 S&P Topix 150 1609.55 1626.90 Russia Micex Index 2436.57 2445.30 FTSE 100 6920.24 6858.79 FTSE E300 1577.43 1549.64
BEL Mid 8888.50 8691.77 France CAC 40 6040.66 5931.92 Topix 1930.17 1935.49 RTX 1245.71 1212.57 FTSE 4Good UK 6207.17 6130.57 FTSE Eurotop 100 3100.73 3048.71
Brazil IBovespa 114339.11 112072.34 SBF 120 4643.31 4557.68 Jordan Amman SE 2498.26 2508.50 Saudi-Arabia TADAWUL All Share Index 11421.78 11551.34 FTSE All Share 3784.45 3740.85 FTSE Global 100 ($) 2326.23 2264.46
Canada S&P/TSX 60 1131.32 1108.74 Germany M-DAX 22983.03 22332.63 Kenya NSE 20 1700.22 1674.95 Singapore FTSE Straits Times 3015.75 3039.61 FTSE techMARK 100 5870.72 5779.13 FTSE Gold Min ($) 1371.87 1407.79
S&P/TSX Comp 18704.00 18326.35 TecDAX 2765.09 2714.89 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 345.52 343.80 USA DJ Composite 10089.90 9884.10 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 1341.95 1393.80 XETRA Dax 12649.03 12437.81 Latvia OMX Riga 1087.46 1076.25 Slovenia SBI TOP - - DJ Industrial 30172.17 29634.83 FTSE Multinationals ($) 2365.45 2401.49
Chile S&P/CLX IGPA Gen 27415.98 26672.49 Greece Athens Gen 842.00 832.32 Lithuania OMX Vilnius 899.96 900.41 South Africa FTSE/JSE All Share 66190.75 64271.36 DJ Transport 12783.31 12503.38 FTSE World ($) 674.41 659.34
China FTSE A200 10288.69 10306.84 FTSE/ASE 20 2041.11 2013.88 Luxembourg LuxX 1301.07 1274.05 FTSE/JSE Res 20 61920.24 59946.97 DJ Utilities 871.69 847.11 FTSEurofirst 100 (Eur) 4135.53 4064.79
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 16612.90 16587.69 Malaysia FTSE Bursa KLCI 1386.27 1382.47 FTSE/JSE Top 40 59638.26 57844.49 Nasdaq 100 11063.38 10692.06 FTSEurofirst 80 (Eur) 4704.56 4620.37
Shanghai A 3232.84 3219.29 HS China Enterprise 5633.23 5629.30 Mexico IPC 46405.28 45443.35 South Korea Kospi 2219.71 2212.55 Nasdaq Cmp 10679.11 10321.39 MSCI ACWI Fr ($) 552.08 558.71
Shanghai B 294.44 295.03 HSCC Red Chip 3286.50 3298.10 Morocco MASI 11442.19 11556.43 Kospi 200 289.57 289.36 NYSE Comp 13957.42 13607.31 MSCI All World ($) 2376.64 2411.69
Shanghai Comp 3084.94 3071.99 Hungary Bux 39855.56 39603.36 Netherlands AEX 640.95 630.58 Spain IBEX 35 7557.10 7382.50 S&P 500 3679.84 3583.07 MSCI Europe (Eur) 1578.37 1568.89
Shenzhen A 2090.02 2075.87 India BSE Sensex 58410.98 57919.97 AEX All Share 873.82 860.24 Sri Lanka CSE All Share 8983.74 9093.37 Wilshire 5000 36800.63 35778.63 MSCI Pacific ($) 2324.25 2286.75
Shenzhen B 1132.42 1140.02 Nifty 500 14906.15 14815.10 New Zealand NZX 50 10785.92 10868.09 Sweden OMX Stockholm 30 1908.38 1869.02 Venezuela IBC 9267.72 9378.74 S&P Euro (Eur) 1565.56 1536.12
Colombia COLCAP 1261.61 1260.21 Indonesia Jakarta Comp 6831.12 6844.62 Nigeria SE All Share 47569.04 47524.38 OMX Stockholm AS 728.48 712.85 Vietnam VNI 1051.58 1061.85 S&P Europe 350 (Eur) 1614.57 1586.44
Croatia CROBEX 2013.05 2011.29 Ireland ISEQ Overall 6720.34 6559.33 Norway Oslo All Share 1017.37 1006.88 Switzerland SMI Index 10498.71 10329.34 S&P Global 1200 ($) 2680.64 2619.10
Israel Tel Aviv 125 1905.14 1898.38 Pakistan KSE 100 41755.45 41948.50 Stoxx 50 (Eur) 3417.99 3367.28
(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 17 %Chg %Chg Oct 17 %Chg %Chg Oct 17 %Chg %Chg Oct 17 %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
Tesla 94.8 219.87 14.88 Shell 178.1 2266.50 -3.50 Bbva 508.8 4.86 0.11 Softbank . 787.7 5549.00 -101.00 Int Consolidated Airlines S.a. 115.04 13.1 - Playtech 532.50 14.2 - Dignity 465.00 24.3 - Personal Goods 29591.99 1.1 -
Apple 57.7 141.68 3.30 Rio Tinto 167.2 4820.00 68.50 Roche Gs 429.1 336.97 3.32 Fast Retailing Co., 722.7 84200.00 -1090.00 Ocado 473.90 8.2 - Coats 59.10 13.2 - Zotefoams 297.50 14.4 - Aerospace & Defense 4613.55 -1.5 10.3
Nvidia 35.3 118.66 6.39 Bp 159.2 449.45 -5.60 Nestle N 294.3 109.95 1.94 Mitsubishi Ufj Fin,. 671.7 675.30 16.10 Rentokil Initial 502.40 8.0 - Tui Ag 122.65 13.2 -46.7 Superdry 120.20 13.4 - Oil & Gas Producers 7869.55 -2.5 37.4
Amazon.com 33.4 113.38 6.48 Astrazeneca 155.9 9862.00 44.00 Novartis N 270.9 78.70 1.02 Nippon Yusen Kabushiki Kaisha 493.7 2701.00 51.00 Segro 767.00 6.5 -46.3 Darktrace 343.40 13.1 - Kin And Carta 214.00 12.6 - Industrial Transportation 3118.32 -2.8 -
Microsoft 25.3 237.11 8.55 Hsbc Holdings 136.8 471.25 12.45 Asml Holding 242.3 397.90 0.45 Tokyo Electron 446.9 36720.00 60.00 Next 4819.00 6.4 - Carnival 565.20 12.7 -60.7 Avon Protection 1097.00 10.6 -4.4 Health Care Equip.& Services 10684.68 -3.0 29.5
Advanced Micro Devices 23.4 58.22 2.28 Glencore 109.3 487.30 2.95 Santander 210.3 2.57 0.04 Toyota Motor 443.3 2000.00 -8.00 Whitbread 2589.00 6.2 - Itv 67.34 12.6 - Chrysalis Investments 60.10 9.3 - Travel & Leisure 5905.55 -3.6 -
Netflix 22.4 245.84 15.84 Lloyds Banking 104.3 42.67 0.22 Unicredit 166.3 11.19 0.14 Mitsui O.s.k.lines, 415.5 2954.00 107.00 Dechra Pharmaceuticals 2696.00 5.8 - Aston Martin Lagonda Global Holdings 100.85 11.9 - Hostelworld 83.50 9.2 20.7 Beverages 27935.72 -3.7 -
Visa 14.4 187.88 5.26 Unilever 87.1 3858.50 -23.50 Totalenergies 159.9 52.85 0.65 Sumitomo Mitsui Fin,. 363.4 4101.00 -85.00 Sainsbury (j) 182.70 5.6 - Watches Of Switzerland 788.00 11.7 -47.4 Petra Diamonds 120.00 8.1 67.8 Media 8577.41 -3.9 -
Bank Of America 13.2 33.43 1.73 National Grid 83.4 906.00 34.80 Ubs N 149.8 14.92 0.17 Kawasaki Kisen Kaisha, 317.5 2340.00 145.00 Severn Trent 2392.00 5.5 - Pagegroup 418.00 11.2 - Treatt 600.00 7.0 - Industrial Metals 6629.23 -3.9 4.0
Alphabet 11.0 100.13 3.57 Gsk 76.2 1354.00 3.80 Iberdrola 147.3 9.66 0.29 Sony 303.2 9646.00 -59.00 Unite 856.00 5.4 -22.0 Wizz Air Holdings 1525.50 11.0 - Trustpilot 79.45 6.7 - Pharmaceuticals & Biotech. 18714.00 -4.3 -0.4
Barratt Developments 360.00 5.4 - Syncona 179.80 10.6 - Cqs New City High Yield Fund 52.60 6.5 -5.4 Tobacco 35375.57 -4.4 20.7
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Flutter Entertainment 10720.00 5.3 -8.4 Easyjet 324.50 9.6 - Galliford Try Holdings 168.00 6.3 - Support Services 9583.30 -4.8 -
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Dish Network 14.07 1.11 8.56 Darktrace 343.40 40.00 13.18 Vonovia Se Na O.n. 21.48 1.35 6.71 Kawasaki Kisen Kaisha, 2340.00 145.00 6.61 Harbour Energy 401.10 -9.4 14.2 Tullow Oil 37.70 -12.4 - Rank 56.90 -14.6 - Automobiles & Parts 1149.08 -31.5 -
Tesla 219.87 14.88 7.26 Itv 67.34 5.64 9.14 Adyen 1359.20 75.40 5.87 Isetan Mitsukoshi Holdings 1354.00 58.00 4.48 Fresnillo 708.00 -8.4 - Moonpig 131.00 -9.5 - Fisher (james) & Sons 266.00 -12.4 - Real Estate & Investment Servic 1981.01 -20.2 -
Netflix 245.84 15.84 6.89 Urban Logistics Reit 131.50 8.50 6.91 Mowi 13.86 0.65 4.90 Mitsui O.s.k.lines, 2954.00 107.00 3.76 Hargreaves Lansdown 796.60 -8.4 - Ferrexpo 115.10 -9.4 - Oryx Int Growth Fund Ltd 960.00 -12.1 - Real Estate Investment Trusts 2137.65 -18.5 -
Paycom Software 318.00 19.27 6.45 Ascential 194.60 12.50 6.86 Volkswagen Ag St O.n. 170.60 7.75 4.76 Sharp 843.00 26.00 3.18 Rio Tinto 4820.00 -5.9 -1.9 Ibstock 151.70 -7.8 - Pphe Hotel 1245.00 -11.1 - Electricity 9163.52 -18.2 -9.5
Expedia 95.84 5.57 6.17 Future 1305.00 83.00 6.79 Infineon Tech.ag Na O.n. 24.69 1.04 4.37 Takashimaya , 1860.00 57.00 3.16 Bae Systems 790.40 -5.6 43.9 Tp Icap 182.60 -6.8 19.4 Xaar 156.00 -10.9 - Gas Water & Multiutilities index 5049.63 -15.7 -
Endeavour Mining 1497.00 -4.6 -8.0 Wood (john) 117.00 -6.4 - Seraphim Space Investment Trust 51.80 -10.7 - Household Goods 9277.24 -12.8 -
Downs Downs Downs Downs
Prudential 884.00 -4.1 - Synthomer 91.65 -6.4 - Secure Trust Bank 708.00 -9.2 - Chemicals 10949.44 -10.9 -
Fox Class A 29.10 -2.45 -7.77 Asos 518.00 -13.50 -2.54 Sartorius Ag Vzo O.n. 372.20 -10.40 -2.72 M3,. 4063.00 -165.00 -3.90
Halma 2028.00 -3.9 - Jpmorgan Japanese Investment Trust 420.00 -6.3 -36.7 Forterra 216.00 -8.1 - Banks 2988.94 -10.9 -1.7
Fox Class B 27.20 -1.97 -6.74 Hargreaves Lansdown 796.60 -15.80 -1.94 Heineken 90.62 -0.26 -0.29 Daiichi Sankyo , 4257.00 -145.00 -3.29
Pershing Square Holdings Ltd 2610.00 -3.7 -14.9 Marshalls 234.00 -6.2 - Abrdn Asia Focus 235.50 -7.8 - Mining 9109.96 -10.6 -
Charles Schwab (the) 66.37 -2.61 -3.78 Haleon 269.10 -4.70 -1.72 Air Liquide 118.52 -0.12 -0.10 Mitsui & Co., 3200.00 -108.00 -3.26
Croda Int 6474.00 -3.6 - Bridgepoint 181.40 -5.7 -62.8 Hunting 237.00 -7.2 48.1 Construction & Materials 6084.12 -9.9 -
Kroger Co (the) 42.34 -0.82 -1.90 Hikma Pharmaceuticals 1242.00 -20.50 -1.62 Edf 11.92 0.00 0.00 Itochu 3779.00 -125.00 -3.20
Intermediate Capital 1022.50 -3.0 - 888 Holdings 90.20 -5.1 - Rps 219.00 -7.2 76.0 Life Insurance 5952.09 -9.9 -22.1
Altria 44.66 -0.57 -1.26 Baillie Gifford Japan Trust 703.00 -9.00 -1.26 L'oreal 326.55 0.20 0.06 Kikkoman 7920.00 -260.00 -3.18
Pearson 889.60 -2.9 47.0 Hikma Pharmaceuticals 1242.00 -4.4 - Octopus Renewables Infrastructure Trust 93.40 -7.0 - General Financial 11585.89 -9.7 0.2
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Oct 17 Currency Mid Change Mid Change Mid Change Oct 17 Currency Mid Change Mid Change Mid Change Oct 17 Currency Mid Change Mid Change Mid Change Oct 17 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 152.5245 0.9116 149.7261 1.8500 174.3516 3.7335 Indonesia Indonesian Rupiah 15487.5000 61.0000 15203.3679 157.0855 17703.8465 343.5793 Poland Polish Zloty 4.8931 -0.0339 4.8033 -0.0022 5.5933 0.0487 ..Three Month 0.8751 -0.0138 0.8583 -0.0079 - -
Australia Australian Dollar 1.5905 -0.0117 1.5613 -0.0014 1.8181 0.0150 Israel Israeli Shekel 3.5195 -0.0260 3.4549 -0.0032 4.0231 0.0332 Romania Romanian Leu 5.0291 -0.0294 4.9368 0.0030 5.7488 0.0562 ..One Year 0.8752 -0.0135 0.8568 -0.0076 - -
Bahrain Bahrainin Dinar 0.3770 -0.0001 0.3701 0.0023 0.4310 0.0066 Japan Japanese Yen 148.7400 0.3750 146.0111 1.3028 170.0255 3.0625 Russia Russian Ruble 62.1500 -0.6000 61.0097 -0.1937 71.0440 0.4281 United States United States Dollar - - 0.9817 0.0063 1.1431 0.0178
Bolivia Bolivian Boliviano 6.9100 - 6.7832 0.0435 7.8989 0.1227 ..One Month 148.7395 0.3740 146.0109 1.3025 170.0250 3.0616 Saudi Arabia Saudi Riyal 3.7594 0.0014 3.6904 0.0250 4.2974 0.0683 ..One Month - - 0.9814 -0.1437 1.1432 0.0178
Brazil Brazilian Real 5.2713 -0.0190 5.1746 0.0147 6.0257 0.0722 ..Three Month 148.7382 0.3715 146.0105 1.3017 170.0239 3.0593 Singapore Singapore Dollar 1.4221 -0.0021 1.3960 0.0069 1.6256 0.0229 ..Three Month - - 0.9809 -0.1437 1.1434 0.0178
Canada Canadian Dollar 1.3732 -0.0141 1.3480 -0.0051 1.5697 0.0085 ..One Year 148.7324 0.3598 146.0072 1.2952 170.0250 3.0535 South Africa South African Rand 18.0575 -0.1525 17.7262 -0.0350 20.6416 0.1489 ..One Year - - 0.9791 -0.1437 1.1435 0.0181
Chile Chilean Peso 970.0200 17.9150 952.2230 23.5847 1108.8352 37.3808 Kenya Kenyan Shilling 121.0500 0.0500 118.8291 0.8114 138.3729 2.2052 South Korea South Korean Won 1435.4000 6.4000 1409.0647 15.2854 1640.8135 32.6838 Vietnam Vietnamese Dong 24330.0000 195.0000 23883.6199 343.4627 27811.7699 651.3633
China Chinese Yuan 7.2043 0.0124 7.0721 0.0575 8.2353 0.1418 Kuwait Kuwaiti Dinar 0.3102 -0.0003 0.3045 0.0017 0.3545 0.0052 Sweden Swedish Krona 11.1838 -0.0976 10.9786 -0.0247 12.7842 0.0887 European Union Euro 1.0187 -0.0066 - - 1.1645 0.0107
Colombia Colombian Peso 4698.5000 75.6450 4612.2972 103.3813 5370.8808 168.5356 Malaysia Malaysian Ringgit 4.7165 0.0145 4.6300 0.0439 5.3915 0.1000 Switzerland Swiss Franc 0.9965 -0.0068 0.9783 -0.0004 1.1392 0.0100 ..One Month 1.0185 -0.0066 - - 1.1643 0.0107
Costa Rica Costa Rican Colon 616.9100 -3.7700 605.5915 0.2095 705.1932 6.7090 Mexico Mexican Peso 19.9880 -0.0630 19.6213 0.0645 22.8484 0.2839 Taiwan New Taiwan Dollar 32.0055 0.1125 31.4183 0.3114 36.5857 0.6948 ..Three Month 1.0179 -0.0066 - - 1.1640 0.0107
Czech Republic Czech Koruna 25.0334 -0.1802 24.5741 -0.0180 28.6158 0.2417 New Zealand New Zealand Dollar 1.7762 -0.0145 1.7436 -0.0029 2.0304 0.0152 Thailand Thai Baht 38.2425 0.1675 37.5409 0.4043 43.7152 0.8674 ..One Year 1.0161 -0.0066 - - 1.1625 0.0110
Denmark Danish Krone 7.5768 -0.0487 7.4378 0.0002 8.6611 0.0797 Nigeria Nigerian Naira 440.7500 - 432.6635 2.7768 503.8237 7.8243 Tunisia Tunisian Dinar 3.2861 -0.0230 3.2258 -0.0017 3.7563 0.0325
Egypt Egyptian Pound 19.6810 0.0928 19.3199 0.2145 22.4975 0.4538 Norway Norwegian Krone 10.5351 -0.1182 10.3418 -0.0490 12.0427 0.0539 Turkey Turkish Lira 18.5850 -0.0050 18.2440 0.1122 21.2446 0.3243
Hong Kong Hong Kong Dollar 7.8500 0.0000 7.7059 0.0494 8.9733 0.1393 Pakistan Pakistani Rupee 218.3000 -0.0750 214.2948 1.3022 249.5399 3.7909 United Arab Emirates UAE Dirham 3.6731 - 3.6057 0.0231 4.1987 0.0652
Hungary Hungarian Forint 420.7457 -7.5621 413.0263 -4.7250 480.9567 -1.0409 Peru Peruvian Nuevo Sol 3.9779 -0.0109 3.9049 0.0144 4.5471 0.0583 United Kingdom Pound Sterling 0.8748 -0.0138 0.8588 -0.0079 - -
India Indian Rupee 82.3575 -0.0063 80.8465 0.5128 94.1433 1.4550 Philippines Philippine Peso 58.9975 0.0625 57.9151 0.4326 67.4404 1.1177 ..One Month 0.8749 -0.0138 0.8586 -0.0080 - -
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 17 Oct 14 Oct 13 Oct 12 Oct 11 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 2278.10 2232.70 2219.70 2168.90 2209.70 0.00 2880.10 2152.10 Oil & Gas Producers 37.95 Health Care Eq & Srv -10.35 Consumer Services -23.26 FTSE 100 Price Change FTSE 100 Price Change
Oct 17 chge% Index Oct 14 Oct 13 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Oil & Gas 37.23 Mobile Telecomms -11.59 Food Producers -24.53 3I Group PLC 1101 21.00 International Consolidated Airlines Group S.A. 115.04 5.18
FTSE 100 (100) 6920.24 0.90 6274.45 6858.79 6850.27 7234.03 3.90 1.94 13.23 236.60 7076.23 P/E Ratio net - - - - - 0.00 19.44 14.26 Tobacco 20.78 Utilities -13.68 Support Services -24.90 Admiral Group PLC 1936 13.00 Intertek Group PLC 3735 94.00
FTSE 250 (250) 17502.84 2.76 15869.49 17032.82 16929.26 22984.24 3.37 1.09 27.06 464.16 14504.43 FT 30 hourly changes Aerospace & Defense 9.84 Telecommunications -14.36 Oil Equipment & Serv -25.17 Airtel Africa PLC 127.70 2.00 Jd Sports Fashion PLC 98.64 3.14
FTSE 250 ex Inv Co (174) 17679.08 3.15 16029.29 17139.69 17037.79 24031.70 3.54 1.51 18.69 502.69 14954.99 8 9 10 11 12 13 14 15 16 High Low Mining 3.68 Media -14.52 FTSE 250 Index -25.46 Anglo American PLC 2673.5 80.50 Kingfisher PLC 212.90 0.10
FTSE 350 (350) 3820.18 1.16 3463.69 3776.27 3768.96 4141.99 3.82 1.83 14.30 126.29 7751.75 2232.7 2247 2239.9 2244.6 2253.6 2258.3 2265.8 2279.7 2279.4 2287.6 2230.5 Beverages 31.66 Travel & Leisure -14.58 Construct & Material -28.10 Antofagasta PLC 1093 15.50 Land Securities Group PLC 531.20 24.20
FTSE 350 ex Investment Trusts (271) 3758.25 1.14 3407.53 3716.05 3709.56 4040.13 3.89 1.92 13.41 126.85 3941.36 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Pharmace & Biotech -0.26 Gas Water & Multi -15.20 Household Goods & Ho -28.12 Ashtead Group PLC 4269 82.00 Legal & General Group PLC 226.50 7.90
FTSE 350 Higher Yield (131) 3303.31 0.96 2995.05 3271.77 3275.05 3252.41 5.34 1.87 10.02 139.72 7540.73 Health Care -0.94 Software & Comp Serv -15.33 Industrial Eng -29.49 Associated British Foods PLC 1324 23.00 Lloyds Banking Group PLC 42.67 0.22
FTSE 350 Lower Yield (219) 3943.82 1.37 3575.79 3890.42 3870.86 4797.05 2.22 1.74 25.86 87.83 4851.26 FT WILSHIRE 5000 INDEX SERIES Banks -2.02 Technology -15.72 Leisure Goods -32.79 Astrazeneca PLC 9862 44.00 London Stock Exchange Group PLC 7324 32.00
FTSE SmallCap (241) 5802.45 1.26 5260.97 5730.00 5678.76 7425.88 3.59 0.51 54.87 171.22 9706.57 Basic Materials -3.13 Nonlife Insurance -16.07 Electronic & Elec Eq -34.01 Auto Trader Group PLC 530.80 7.20 M&G PLC 174.65 4.30
FTSE SmallCap ex Inv Co (128) 4636.80 2.01 4204.10 4545.54 4523.12 6311.82 3.79 2.33 11.29 134.87 8070.21 Oct 14 Oct 14 Personal Goods -4.01 Financials -18.25 Chemicals -34.28 Aveva Group PLC 3146 -5.00 Melrose Industries PLC 103.95 3.35
FTSE All-Share (591) 3784.45 1.17 3431.29 3740.85 3732.93 4123.97 3.82 1.80 14.58 124.72 7754.30 FTSE 100 Index -6.29 Tech Hardware & Eq -19.13 Real Est Invest & Tr -36.75
FT Wilshire 5000 36456.56 FT Wilshire Mid Cap 4857.76 Aviva PLC 402.70 8.40 Mondi PLC 1425 21.50
FTSE All-Share ex Inv Co (399) 3690.42 1.15 3346.03 3648.55 3642.00 3982.36 3.89 1.92 13.37 124.31 3929.44 Consumer Goods -7.07 Fixed Line Telecomms -21.45 Real Est Invest & Se -39.17
FT Wilshire 2500 4666.64 FT Wilshire Small Cap 4478.94 B&M European Value Retail S.A. 316.00 1.90 National Grid PLC 906.00 34.80
FTSE All-Share ex Multinationals (528) 991.41 2.23 746.53 969.82 962.03 1322.55 4.20 1.79 13.27 35.09 2101.98 NON FINANCIALS Index -8.56 Life Insurance -22.11 Food & Drug Retailer -40.50
FT Wilshire Mega Cap 4656.42 FT Wilshire Micro Cap 4424.62 Bae Systems PLC 790.40 -0.40 Natwest Group PLC 233.30 5.30
FTSE Fledgling (83) 11112.72 0.01 10075.70 11111.44 11015.80 13492.05 3.79 4.89 5.39 286.16 23929.61 Electricity -9.16 Financial Services -22.12 General Retailers -40.83
FT Wilshire Large Cap 4690.06 Barclays PLC 145.40 2.58 Next PLC 4819 92.00
FTSE Fledgling ex Inv Co (33) 14179.52 -0.14 12856.30 14200.07 13966.53 18619.68 3.46 8.24 3.51 365.43 29644.38 FTSE All{HY-}Share Index -10.07 FTSE SmallCap Index -22.21 Industrial Transport -47.82
Source: Wilshire. Wilshire Advisors LLC (Wilshire) is an investment advisor registered with the SEC. Further Barratt Developments PLC 360.00 13.00 Ocado Group PLC 473.90 17.10
FTSE All-Small (324) 4052.61 1.19 3674.43 4004.78 3969.04 5171.78 3.61 0.76 36.42 118.78 8694.90 Beverages -10.19 Industrials -22.27 Automobiles & Parts -68.33
information is available at https://www.wilshire.com/solutions/indexes . Wilshire® is a registered service Berkeley Group Holdings (The) PLC 3460 103.00 Pearson PLC 889.60 -10.40
FTSE All-Small ex Inv Co (161) 3490.15 1.93 3164.45 3424.13 3405.78 4744.82 3.78 2.53 10.45 101.11 7692.66 Equity Invest Instr -22.34 Industrial Metals & -82.53
mark. Copyright ©2022 Wilshire. All rights reserved. BP PLC 449.45 -5.60 Pershing Square Holdings LTD 2610 5.00
FTSE AIM All-Share (767) 787.66 1.01 714.16 779.80 775.77 1229.10 1.67 1.53 39.07 10.57 922.94
British American Tobacco PLC 3277 -4.50 Persimmon PLC 1269.5 58.50
FTSE All-Share Technology (21) 1861.67 2.51 1463.72 1816.01 1822.86 2298.75 2.03 0.80 61.53 36.68 2692.55
British Land Company PLC 350.80 17.30 Phoenix Group Holdings PLC 537.00 14.60
FTSE All-Share Telecommunications (6) 1596.09 0.96 1254.91 1580.98 1572.13 1740.09 6.56 1.06 14.39 57.66 2375.35 FTSE GLOBAL EQUITY INDEX SERIES Bt Group PLC 124.95 2.30 Prudential PLC 884.00 11.80
FTSE All-Share Health Care (14) 13067.96 0.34 10274.57 13023.06 12926.83 12750.65 3.04 1.14 28.79 341.37 12074.76
Oct 17 No of US $ Day Mth YTD Total
YTD Gr Div Oct 17 No of US $ Day Mth YTD Total YTD Gr Div Bunzl PLC 2739 32.00 Reckitt Benckiser Group PLC 5826 18.00
FTSE All-Share Financials (256) 4178.62 1.87 3285.40 4102.10 4092.46 4925.39 4.02 2.20 11.31 155.63 4639.64
Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Burberry Group PLC 1884 42.50 Relx PLC 2200 25.00
FTSE All-Share Real Estate (55) 781.62 3.62 642.88 754.31 738.08 1160.74 4.44 4.53 4.96 27.92 818.74
FTSE Global All Cap 9530 620.19 -1.1 -9.3 -26.8
-25.4 991.91
2.5 Oil Equipment & Services 24 246.44 -2.9 -9.5 5.3 453.95 8.8 4.6 Centrica PLC 72.30 0.68 Rentokil Initial PLC 502.40 2.20
FTSE All-Share Consumer Discretionary (86) 4182.44 2.03 3288.41 4099.36 4061.93 5480.06 2.50 1.07 37.54 98.53 4427.49
FTSE Global All Cap 9530 620.19 -1.1 -9.3 -26.8
-25.4 991.91
2.5 Basic Materials 392 517.75 -1.0 -7.6 -23.0 952.33 -19.8 5.4 Coca-Cola Hbc AG 1971.5 -16.50 Rightmove PLC 477.20 10.60
FTSE All-Share Consumer Staples (24)18733.52 0.03 14729.07 18727.42 18553.86 18549.79 4.07 1.16 21.29 612.85 17107.08
FTSE Global Large Cap 1907 555.70 -1.0 -9.0 -26.8
-25.4 916.12
2.5 Chemicals 195 703.28 -1.3 -9.0 -27.4 1242.65 -25.5 3.4 Compass Group PLC 1806.5 0.50 Rio Tinto PLC 4820 68.50
FTSE All-Share Industrials (84) 5752.01 1.74 4522.47 5653.58 5654.35 7062.10 2.47 1.35 30.06 118.28 6639.63
FTSE Global Mid Cap 2265 792.38 -1.5 -10.2 -26.1
-24.8 1192.11
2.5 Forestry & Paper 20 237.85 2.1 -6.5 -22.1 478.73 -19.8 4.0 Convatec Group PLC 211.20 4.80 Rolls-Royce Holdings PLC 71.57 1.52
FTSE All-Share Basic Materials (22) 7953.01 1.60 6252.99 7828.00 7950.99 8187.22 6.84 2.01 7.27 537.59 10840.53
FTSE Global Small Cap 5358 829.76 -1.4 -9.7 -27.5
-26.3 1193.95
2.3 Industrial Metals & Mining 98 410.51 -1.7 -6.5 -25.8 784.37 -22.0 8.9 Crh PLC 2898 28.00 Rs Group PLC 964.00 26.50
FTSE All-Share Energy (13) 8139.46 -0.47 6399.58 8178.21 8279.77 6523.64 3.41 2.96 9.90 220.07 9808.72
FTSE All-World 4172 364.24 -1.1 -9.2 -26.7
-25.3 616.93
2.5 Mining 79 807.65 -0.4 -6.2 -13.2 1574.00 -7.9 6.9 Croda International PLC 6474 150.00 Sage Group PLC 700.20 14.40
FTSE All-Share Utilities (10) 7534.03 3.18 5923.56 7301.93 7190.41 7710.51 5.06 0.66 29.77 292.26 11380.84
FTSE World 2667 659.34 -1.2 -9.1 -26.6
-25.2 1498.52
2.5 Industrials 802 427.34 -0.8 -9.0 -28.9 680.72 -27.6 2.3 Dcc PLC 4749 76.00 Sainsbury (J) PLC 182.70 4.05
FTSE All-Share Software and Computer Services (18) 2012.83 2.48 1582.57 1964.09 1971.02 2462.99 2.03 0.80 61.84 39.73 3080.05
FTSE Global All Cap ex UNITED KINGDOM In 9238 655.97 -1.2 -9.3 -26.9
-25.5 1029.04
2.4 Construction & Materials 154 489.62 0.0 -10.4 -33.8 823.22 -32.4 2.4 Dechra Pharmaceuticals PLC 2696 40.00 Schroders PLC 379.80 12.10
FTSE All-Share Technology Hardware and Equipment (3) 4479.31 3.38 3521.82 4332.99 4377.00 7097.24 1.98 0.93 54.22 78.21 5789.14
FTSE Global All Cap ex USA 7717 429.12 0.9 -9.1 -28.5
-26.4 761.58
3.5 Aerospace & Defense 35 744.93 -2.6 -6.0 -7.3 1160.38 -6.1 1.7 Diageo PLC 3669 2.00 Scottish Mortgage Investment Trust PLC 733.00 9.60
FTSE All-Share Telecommunications Equipment (1) 571.81 2.48 449.58 557.95 553.93 679.36 2.15 2.31 20.15 11.51 817.35
FTSE Global All Cap ex JAPAN 8125 647.10 -1.3 -9.5 -26.8
-25.5 1044.00
2.5 General Industrials 76 202.59 -0.5 -5.6 -27.0 357.24 -25.4 2.9 Endeavour Mining PLC 1497 32.00 Segro PLC 767.00 27.60
FTSE All-Share Telecommunications Service Providers (5) 2461.20 0.89 1935.10 2439.41 2425.91 2670.54 6.75 1.04 14.23 90.35 3334.12
FTSE Global All Cap ex Eurozone 8865 661.00 -1.3 -9.3 -26.1
-24.8 1034.11
2.4 Electronic & Electrical Equipment 157 532.43 -0.2 -9.2 -33.8 764.72 -32.8 1.7 Entain PLC 1172.5 22.50 Severn Trent PLC 2392 93.00
FTSE All-Share Health Care Providers (3)10729.73 0.84 8436.16 10640.83 10667.58 8729.03 0.54 4.48 41.11 58.27 9958.93
FTSE Developed 2182 605.34 -1.3 -9.1 -26.6
-25.4 974.64
2.3 Industrial Engineering 158 824.72 -0.8 -6.7 -28.7 1308.66 -27.5 2.2 Experian PLC 2676 43.00 Shell PLC 2266.5 -3.50
FTSE All-Share Medical Equipment and Services (2) 5053.22 0.94 3973.05 5006.41 4935.42 5994.31 2.83 0.97 36.67 142.76 4881.22
FTSE Developed All Cap 5837 631.20 -1.4 -9.2 -26.7
-25.5 1001.28
2.3 Industrial Transportation 132 807.95 -0.4 -12.6 -27.3 1311.39 -25.1 3.7 F&C Investment Trust PLC 871.00 -3.00 Smith & Nephew PLC 1003 4.00
FTSE All-Share Pharmaceuticals and Biotechnology (9)18658.20 0.31 14669.85 18601.13 18468.37 18029.36 3.08 1.14 28.35 489.47 15521.43
FTSE Developed Large Cap 834 568.78 -1.3 -8.9 -26.6
-25.3 932.12
2.3 Support Services 90 472.88 -1.0 -10.6 -33.4 702.97 -32.6 1.6 Flutter Entertainment PLC 10720 300.00 Smith (Ds) PLC 274.70 8.60
FTSE All-Share Banks (12) 2949.09 2.23 2318.70 2884.64 2883.22 3030.69 4.41 4.27 5.31 128.47 2609.81
FTSE Developed Europe Large Cap 220 319.89 0.9 -8.1 -28.8
-26.7 632.82
3.5 Consumer Goods 569 502.51 -0.9 -11.0 -27.1 843.60 -25.7 2.5 Frasers Group PLC 658.00 17.00 Smiths Group PLC 1535.5 29.50
FTSE All-Share Finance and Credit Services (8) 9940.02 0.87 7815.26 9854.46 9852.72 11066.43 2.10 2.05 23.22 208.41 13355.30
FTSE Developed Europe Mid Cap 356 468.54 1.1 -10.8 -39.2
-37.7 804.34
3.3 Automobiles & Parts 132 485.14 -2.9 -20.9 -37.2 784.27 -36.3 2.0 Fresnillo PLC 708.00 5.80 Smurfit Kappa Group PLC 2675 95.00
FTSE All-Share Investment Banking and Brokerage Services (31) 7446.59 2.20 5854.82 7286.01 7261.03 10482.35 5.93 1.86 9.09 379.93 10447.79
FTSE Dev Europe Small Cap 750 662.11 1.2 -11.6 -40.1
-38.5 1092.13
3.5 Beverages 72 703.07 -0.7 -4.9 -12.8 1191.91 -11.3 2.4 Glaxosmithkline PLC 1354 3.80 Spirax-Sarco Engineering PLC 10565 175.00
FTSE All-Share Closed End Investments (192)11074.34 1.43 8707.10 10918.65 10843.91 13868.62 2.79 -0.76 -47.03 244.11 6905.56
FTSE North America Large Cap 234 771.29 -2.3 -9.3 -26.0
-25.1 1156.41
1.9 Food Producers 134 657.02 -0.7 -5.7 -16.3 1131.16 -14.6 2.6 Glencore PLC 487.30 2.95 Sse PLC 1493 23.00
FTSE All-Share Life Insurance (6) 6059.13 2.20 4763.94 5928.91 5975.10 8154.56 5.06 1.08 18.30 294.59 7414.84
FTSE North America Mid Cap 424 998.54 -2.6 -10.5 -23.6
-22.6 1384.21
2.0 Household Goods & Home Construction 65 455.81 -0.5 -8.8 -30.3 765.23 -28.8 3.1 Haleon PLC 269.10 -4.70 St. James's Place PLC 989.80 20.40
FTSE All-Share Nonlife Insurance (7) 3351.05 1.37 2634.73 3305.64 3253.18 3554.42 4.31 1.24 18.75 130.27 7136.52
FTSE North America Small Cap 1335 1000.69 -2.6 -9.3 -24.2
-23.3 1330.34
1.7 Leisure Goods 53 215.57 0.7 -9.3 -32.3 304.73 -31.5 1.5 Halma PLC 2028 -15.00 Standard Chartered PLC 555.40 13.80
FTSE All-Share Real Estate Investment and Services (10) 1914.57 2.72 1505.32 1863.91 1829.34 2926.95 2.63 3.76 10.10 41.03 5708.92
FTSE North America 658 504.11 -2.4 -9.6 -25.6
-24.6 772.70
1.9 Personal Goods 98 779.54 0.5 -9.7 -32.5 1197.73 -31.5 2.0 Harbour Energy PLC 401.10 2.00 Taylor Wimpey PLC 91.28 3.32
FTSE All-Share Real Estate Investment Trusts (45) 1953.45 3.78 1535.88 1882.30 1840.82 2878.65 4.76 4.61 4.56 75.43 2947.21
FTSE Developed ex North America 1524 223.95 1.2 -8.1 -29.0
-27.0 428.13
3.4 Tobacco 15 896.19 -0.9 -3.6 -6.8 2533.40 -2.6 6.4 Hargreaves Lansdown PLC 796.60 -15.80 Tesco PLC 205.70 3.60
FTSE All-Share Automobiles and Parts (2) 1154.97 5.41 908.09 1095.73 1075.17 4368.65 0.84 -19.25 -6.16 14.02 1201.57
FTSE Japan Large Cap 169 331.90 1.8 -6.6 -27.2
-25.4 487.74
2.6 Health Care 343 656.07 0.0 -3.3 -16.9 1044.58 -15.6 1.9 Homeserve PLC 1183 1.00 Unilever PLC 3858.5 -23.50
FTSE All-Share Consumer Services (2) 2979.44 0.09 2342.56 2976.81 2961.14 2479.43 1.29 1.71 45.35 38.43 3779.41
FTSE Japan Mid Cap 340 474.97 1.2 -5.8 -22.6
-20.7 662.82
2.6 Health Care Equipment & Services 133 1263.72 -0.6 -6.2 -24.0 1549.54 -23.4 1.1 HSBC Holdings PLC 471.25 12.45 Unite Group PLC 856.00 26.50
FTSE All-Share Household Goods and Home Construction (13) 7751.95 3.88 6094.91 7462.36 7375.96 14201.32 9.15 1.70 6.43 661.61 6935.24
FTSE Global wi JAPAN Small Cap 896 524.70 1.3 -5.7 -24.6
-22.6 760.02
2.8 Pharmaceuticals & Biotechnology 210 440.72 0.4 -1.1 -11.3 754.20 -9.5 2.4 Imperial Brands PLC 2007 -9.00 United Utilities Group PLC 891.80 37.40
FTSE All-Share Leisure Goods (2) 17065.90 3.56 13417.92 16478.57 16315.04 26162.44 4.25 1.49 15.85 721.42 18947.72
FTSE Japan 509 137.08 1.7 -6.5 -26.3
-24.5 225.56
2.6 Consumer Services 427 486.85 -1.8 -10.2 -30.9 694.34 -30.2 1.3 Informa PLC 559.40 8.40 Vodafone Group PLC 100.02 0.43
FTSE All-Share Personal Goods (5) 25480.81 3.10 20034.07 24715.75 24734.00 28966.83 2.01 2.75 18.11 402.68 19929.95
FTSE Asia Pacific Large Cap ex Japan 1088 593.33 1.4 -10.8 -28.8
-26.9 1079.67
3.5 Food & Drug Retailers 69 285.01 -0.3 -8.1 -17.2 452.21 -15.6 2.6 Intercontinental Hotels Group PLC 4515 78.00 Whitbread PLC 2589 81.00
FTSE All-Share Media (11) 8795.06 1.51 6915.04 8664.10 8614.82 9397.83 2.43 1.50 27.36 213.23 6182.49
FTSE Asia Pacific Mid Cap ex Japan 866 841.57 1.4 -11.5 -25.8
-23.6 1476.66
3.8 General Retailers 141 874.14 -2.6 -11.1 -31.6 1193.06 -31.1 1.0 Intermediate Capital Group PLC 1022.5 41.30 Wpp PLC 753.80 13.60
FTSE All-Share Retailers (22) 1603.79 1.85 1260.97 1574.61 1556.32 2687.74 3.14 3.70 8.61 43.41 2080.84
FTSE All-Share Travel and Leisure (29) 5768.38 2.87 4535.34 5607.54 5523.95 8630.39 0.67 -10.97 -13.55 35.41 5960.99 FTSE Asia Pacific Small Cap ex Japan 2118 481.64 1.7 -12.4 -33.8
-32.1 821.29
3.4 Media 75 267.74 -0.9 -10.4 -43.0 384.75 -42.3 1.4
FTSE All-Share Beverages (5) 28033.31 0.07 22040.96 28013.92 27623.56 28228.24 2.14 1.99 23.50 584.47 22466.38 FTSE Asia Pacific Ex Japan 1954 472.41 1.4 -10.9 -28.5
-26.6 913.62
3.5 Travel & Leisure 142 398.97 -0.8 -8.2 -22.2 581.82 -21.5 1.2
FTSE All-Share Food Producers (10) 5217.83 2.10 4102.47 5110.68 5060.00 6598.21 2.84 2.14 16.43 83.25 5023.18 FTSE Emerging All Cap 3693 641.26 0.9 -10.1 -27.2
-24.9 1116.11
4.0 Telecommunication 89 117.79 0.2 -9.2 -20.5 277.19 -17.6 4.6 UK STOCK MARKET TRADING DATA
FTSE All-Share Tobacco (2) 35375.63 -0.20 27813.79 35446.83 35355.81 27967.30 6.70 0.92 16.18 1728.22 33063.66 FTSE Emerging Large Cap 1073 590.77 0.9 -10.4 -28.2
-26.0 1034.06
4.0 Fixed Line Telecommuniations 31 90.03 0.0 -10.2 -20.1 243.45 -16.5 5.7 Oct 17 Oct 14 Oct 13 Oct 12 Oct 11 Yr Ago
FTSE All-Share Construction and Materials (15) 6489.93 1.37 5102.65 6402.35 6430.56 8217.34 3.52 0.65 43.69 217.85 7904.38 FTSE Emerging Mid Cap 917 926.47 0.5 -8.4 -19.4
-16.7 1622.03
4.3 Mobile Telecommunications 58 140.84 0.3 -8.7 -20.8 285.50 -18.2 4.0 Order Book Turnover (m) 66.44 197.87 197.87 177.69 314.09 43.18
FTSE All-Share Aerospace and Defense (7) 4851.95 0.64 3814.80 4821.19 4948.58 4877.35 2.38 0.05 837.23 59.88 5865.16 FTSE Emerging Small Cap 1703 701.51 1.1 -10.1 -27.6
-25.3 1168.91
3.6 Utilities 200 280.31 -0.5 -16.4 -18.3 653.39 -16.2 3.7 Order Book Bargains 759156.00 876414.00 876414.00 946673.00 854249.00 715976.00
FTSE All-Share Electronic and Electrical Equipment (10) 9570.47 1.73 7524.70 9407.55 9384.84 13560.88 1.79 2.01 27.71 142.02 9447.58 FTSE Emerging Europe 111 94.72 2.3 -3.6 -77.1
-76.2 197.88
3.3 Electricity 142 321.27 -0.8 -16.5 -16.7 737.38 -14.6 3.5 Order Book Shares Traded (m) 1588.00 1760.00 1760.00 2057.00 1869.00 1533.00
FTSE All-Share General Industrials (8) 4491.56 2.28 3531.45 4391.39 4352.20 5380.55 3.15 1.17 27.04 122.02 5907.53 FTSE Latin America All Cap 262 699.39 -1.4 -2.6 -1.45.8 1366.75
11.4 Gas Water & Multiutilities 58 268.08 0.3 -16.2 -22.3 646.99 -20.0 4.1 Total Equity Turnover (£m) 5467.71 4665.54 4665.54 4664.81 4733.60 4588.36
FTSE All-Share Industrial Engineering (5)14645.92 2.63 11515.23 14271.29 14233.22 19025.72 1.79 2.01 27.89 261.52 19673.43 FTSE Middle East and Africa All Cap 332 722.72 0.4 -5.8 -9.3
-6.7 1322.06
3.3 Financials 855 229.85 -0.6 -9.1 -23.4 440.78 -21.3 3.5 Total Mkt Bargains 942639.00 1069698.00 1069698.00 1165423.00 1033586.00 908151.00
FTSE All-Share Industrial Support Services (31) 9239.09 1.88 7264.16 9068.85 8965.76 11371.02 2.05 1.67 29.25 181.51 10625.09 FTSE Global wi UNITED KINGDOM All Cap In 292 269.48 0.3 -8.8 -25.1
-22.8 549.31
3.9 Banks 270 179.06 0.5 -6.8 -20.9 382.59 -18.1 4.4 Total Shares Traded (m) 5946.00 5406.00 5406.00 5633.00 5383.00 4971.00
FTSE All-Share Industrial Transportation (8) 4712.22 2.16 3704.94 4612.45 4655.77 6704.27 2.48 3.42 11.82 98.14 4937.17 FTSE Global wi USA All Cap 1813 866.79 -2.4 -9.4 -25.6
-24.7 1.8 Nonlife Insurance
1252.81 72 312.74 -0.9 -5.7 -10.8 521.73 -8.3 3.1 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
FTSE All-Share Industrial Materials (1)14877.78 -0.50 444.39 14952.79 14502.71 18003.36 2.21 1.81 25.01 329.06 18792.85 FTSE Europe All Cap 1466 360.03 1.0 -8.8 -32.7
-30.8 683.73
3.5 Life Insurance 51 190.31 0.5 -7.8 -21.3 365.92 -18.4 4.4 (c) Market closed.
FTSE All-Share Industrial Metals and Mining (9) 7139.55 1.46 5613.41 7036.59 7155.23 6805.87 7.32 2.01 6.80 517.27 10959.02 FTSE Eurozone All Cap 665 340.67 1.1 -8.8 -34.3
-32.4 642.28
3.5 Financial Services 212 372.99 -1.7 -9.8 -25.3 565.26 -24.2 2.0
FTSE All-Share Precious Metals and Mining (5) 8743.47 2.00 6874.48 8572.07 8729.26 19834.88 4.09 1.86 13.15 358.99 6164.45 FTSE EDHEC-Risk Efficient All-World 4172 415.26 -1.1 -9.3 -23.9
-22.3 652.56
2.9 Technology 363 418.13 -2.1 -11.9 -38.4 545.02 -37.9 1.2
FTSE All-Share Chemicals (7) 12101.47 2.86 9514.68 11765.33 11804.77 18016.41 3.03 2.04 16.15 335.92 12140.22 FTSE EDHEC-Risk Efficient Developed Europe 576 261.61 1.2 -10.4 -36.7
-34.9 459.44
3.6 Software & Computer Services 187 648.14 -1.9 -11.4 -39.4 783.21 -39.1 0.7 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
FTSE All-Share Oil. Gas and Coal (12) 7901.72 -0.47 6212.66 7939.32 8037.97 6331.12 3.41 2.96 9.90 213.64 9875.36 Oil & Gas 132 374.68 -2.3 -4.7 14.3
19.0 4.9 Technology Hardware & Equipment
763.59 176 360.17 -2.3 -12.4 -37.2 505.11 -36.4 1.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Oil & Gas Producers 88 377.28 -2.2 -2.8 18.8
24.0 789.59
5.2 Alternative Energy 20 151.48 -1.1 -25.8 -27.3 217.36 -27.0 0.5 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
FTSE Sector Indices Real Estate Investment & Services 142 227.00 0.9 -12.1 -31.0 441.03 -29.3 3.5
Non Financials (335) 4637.69 0.97 4204.91 4593.15 4583.72 4939.07 3.76 1.68 15.87 147.30 8356.61 liable for any loss arising from the reliance on or use of the listed information.
Real Estate Investment Trusts 108 390.52 -1.9 -17.3 -34.5 910.85 -32.8 4.3
For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE Global Large Cap 1907 555.70 -1.0 -9.0 -26.8 916.12 -25.4 2.5
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 100 6874.94 6899.32 6886.52 6896.65 6910.39 6914.68 6912.08 6939.45 6923.21 6959.30 6850.98 mid cap) - please see https://research.ftserussell.com/Products/indices/Home/indexfiltergeis?indexName=GEISAC&currency=USD&rtn=CAP&segment=global-developed–emerging. The trade names Fundamental Index® Data provided by Morningstar | www.morningstar.co.uk
FTSE 250 17072.77 17178.54 17181.02 17200.00 17242.67 17333.30 17369.84 17475.98 17477.61 17535.50 17056.25 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.
FTSE SmallCap 5733.80 5736.61 5730.46 5734.93 5736.12 5756.87 5758.41 5782.93 5787.12 5802.45 5727.00 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 All-Share 3749.49 3763.88 3758.02 3763.29 3770.87 3775.95 3775.91 3792.04 3784.77 3801.69 3738.10 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,
Time of FTSE 100 Day's high:13:51:00 Day's Low07:23:00 FTSE 100 2010/11 High: 7672.40(10/02/2022) Low: 6826.15(12/10/2022) 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 All-Share Day's high:13:42:00 Day's Low07:23:00 FTSE 100 2010/11 High: 4296.96(10/02/2022) Low: 3712.50(12/10/2022)
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 abrdn Asia Focus Pre 10.942L 150.589 7.020L 92.340 0.00000 3.00000 - 3.200 3.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Cordel Group Pre 2.273 1.690 1.205L 1.222L 0.700L 0.610L 0.00000 0.00000 - 0.000 0.000 10/07 10.00 ACG ACG Acquisition Company Ltd 9.93 0.03 10.10 9.95 124.1
There are currently no rights offers by any companies listed on the LSE. EnSilica Pre 15.293 8.607 0.534L 0.000 0.200 0.000 0.00000 0.00000 - 0.000 0.000 10/04 1.00 MII Milton Capital PLC 1.05 0.00 1.20 1.00 105.0
JPMorgan UK Smaller Companies Investment Trust Pre 81.289L 140.661 104.290L 180.200 6.90000 5.70000 Dec 19 6.900 5.700
Sainsbury (J) Int 15724.000 14934.000 541.000 137.000L 17.300 8.300L 3.20000 3.20000 Dec 17 10.600 3.200

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Tuesday 18 October 2022 ★ FINANCIAL TIMES 13

MARKET DATA

Fund Bid Offer +/- Yield 1Yr 3Yr Fund Bid Offer +/- Yield 1Yr 3Yr Fund Bid Offer +/- Yield 1Yr 3Yr Fund Bid Offer +/- Yield 1Yr 3Yr Fund Bid Offer +/- Yield 1Yr 3Yr

Tosca Mid Cap GBP £ 169.38 - -22.79 0.00 -34.33 -17.95

Tosca Opportunity B USD $ 258.80 - -15.18 0.00 -33.99 -17.17
Pegasus Fund Ltd A-1 GBP £ 40.34 - -2.47 0.00 -34.03 -18.07

MMIP Investment Management Limited ( GSY ) Slater

Investments
Regulated
Multi-Manager Investment Programmes PCC Limited
UK Equity Fd Cl A Series 01 £ 2973.15 3006.06 -142.29 0.00 -6.69 4.31
Diversified Absolute Rtn Fd USD Cl AF2 $ 1635.28 - 2.47 0.00 -6.03 0.81
Diversified Absolute Return Stlg Cell AF2 £ 1520.35 - 0.98 0.00 -6.67 -0.30
Global Equity Fund A Lead Series £ 1757.52 1763.53 -0.92 - -5.16 3.25

Oasis Crescent Global Investment Funds (UK) ICVC( UK ) Ram Active Investments SA Slater Investments Ltd ( UK )
Regulated www.ram-ai.com www.slaterinvestments.com; Tel: 0207 220 9460
Oasis Crescent Global Equity Fund USD A (Dist) $ 30.89 - 0.62 0.26 -18.02 0.81 Other International Funds FCA Recognised
Marlborough Investment Management Limited ( UK ) Oasis Crescent Global Income Fund USD A (Dist) $ 9.81 - 0.00 2.68 -8.91 -0.70 RAM Systematic Emerg Markets Eq $ 183.43 183.43 -1.62 - -24.43 2.35 Slater Growth A Acc 605.97 605.97 8.90 0.00 -27.78 3.54
Marlborough, PO BOX 1852 Lichfield, Staffordshire, England, WS13 8XU. 0808 145 2500. RAM Systematic European Eq € 466.72 466.72 3.91 - -18.89 1.49 Slater Income A Inc 133.28 133.28 1.53 5.22 -8.35 1.81
Troy Asset Mgt (1200) ( UK )
Oasis Crescent Global Low Equity Fund USD D (Dist) $ 11.37 - 0.13 0.61 -14.56 -1.26 65 Gresham Street, London, EC2V 7NQ
www.marlboroughfunds.com RAM Systematic Funds Global Sustainable Income Eq $ 133.84 133.84 2.23 0.00 -13.90 2.38 Slater Recovery A Acc 317.65 317.65 3.37 0.00 -20.08 7.72
Authorised Inv Funds Oasis Crescent Global Medium Equity Fund USD A (Dist) $ 12.55 - 0.16 0.16 -14.21 -0.29 Order Desk and Enquiries: 0345 608 0950
Oasis Crescent Global Property Equity Fund USD A (Dist) $ 6.93 - 0.13 0.73 -28.11 -7.79 RAM Systematic Global Eq Sustainable Alpha $ 113.46 113.46 0.28 - 2.17 -0.22 Slater Artorius 276.49 276.49 -10.81 0.33 -25.88 7.67 Authorised Inv Funds
Balanced 211.66 211.66 0.46 0.19 -10.95 1.21
RAM Systematic Long/Short European Eq € 156.64 156.64 -0.13 - 5.62 2.98 Authorised Corporate Director - Link Fund Solutions
Bond Income 38.20 38.20 0.63 4.29 -22.93 -7.40 Oasis Crescent Global Short Term Income Fund USD A (Dist) $ 0.93 - 0.01 1.84 -4.01 -0.21
RAM Systematic US Sustainable Eq $ 315.20 315.20 8.14 - -23.41 1.60 Trojan Investment Funds
Cautious Inc 80.80 80.80 0.06 1.65 -10.10 -1.48 Oasis Crescent Variable Fund GBP A (Dist) £ 9.13 - -0.01 0.18 -9.72 -1.85
RAM Tactical Global Bond Total Return € 134.75 134.75 -0.17 - -12.36 -3.11 Trojan Ethical O Acc 123.75 - 0.27 0.00 -2.83 5.09
Emerging Markets 331.00 331.00 1.45 1.00 -8.04 2.87 Trojan Ethical Global Inc O Acc 98.93 - 1.23 - - -
Conservative P Acc 89.69 - 0.07 0.00 -10.58 - RAM Tactical II Asia Bond Total Return $ 140.03 140.03 -0.59 - -9.55 -2.24
Trojan Ethical Global Inc O Inc 97.13 - 1.21 - - -
European Multi-Cap 618.45 618.45 5.34 1.10 -22.03 11.74 Trojan Ethical O Inc 123.50 - 0.27 0.00 -2.84 5.08
Extra Income 81.99 81.99 1.01 4.51 -6.83 2.02 Trojan Ethical Income O Acc 125.93 - 1.91 2.71 -10.61 -2.77
Far East Growth A Inc 218.35 218.35 1.12 1.27 -16.63 -0.74 Trojan Ethical Income O Inc 105.53 - 1.60 2.77 -10.62 -2.77
Global 278.84 278.84 1.77 0.00 -12.14 3.45 Trojan Fund O Acc 377.13 - 0.61 0.00 -1.42 5.24
Global Bond Inc 133.62 133.62 -0.38 3.17 -10.82 -3.88 Omnia Fund Ltd Trojan Fund O Inc 305.26 - 0.49 0.00 -1.42 5.24
High Yield Fixed Interest 57.98 57.98 0.07 5.01 -15.88 -2.86 Other International Funds Trojan Global Equity O Acc 449.96 - 5.73 0.00 -10.22 6.10
Marlborough Technology Fund A 775.16 775.16 6.40 0.00 -27.84 11.07 Estimated NAV $ 955.58 - 173.14 0.00 43.52 9.86 Royal London ( UK ) Trojan Global Equity O Inc 371.26 - 4.74 0.00 -10.22 6.10
Multi Cap Income A Inc 109.17 109.17 1.90 5.86 -23.97 -5.25 55 Gracechurch Street, London, EC3V rlam.co.uk
Authorised Inv Funds Trojan Global Income O Acc 152.72 - 1.77 2.82 6.87 6.20
Nano-Cap Growth A Acc 187.61 187.61 0.13 0.00 -33.46 4.36 Trojan Global Income O Inc 128.62 - 1.49 2.87 6.88 6.20
Royal London Sustainable Diversified A Inc £ 2.13 - 0.03 0.67 -17.50 0.55
Special Situations A Acc 1549.19 1549.19 13.86 0.00 -36.61 -0.57 Trojan Income O Acc 316.51 - 4.86 2.94 -10.29 -3.22
Royal London Sustainable World A Inc 315.80 - 4.50 0.00 -16.41 4.42
UK Multi-Cap Growth A Inc 310.74 310.74 5.97 0.10 -31.12 -2.57 Trojan Income O Inc 156.69 - 2.41 3.01 -10.29 -3.22
Royal London Corporate Bond Mth Income 70.05 - 1.02 4.50 -20.78 -5.91
UK Micro Cap Growth A 707.20 707.20 2.86 0.00 -39.93 0.02
Royal London European Growth Trust 180.80 - 2.20 0.83 -12.52 3.40
US Multi-Cap Income 722.65 722.65 11.73 1.21 3.85 9.41
Royal London Sustainable Leaders A Inc 694.50 - 14.00 1.12 -12.57 2.70 Stewart Investors ( UK )
MFM - Third Party Funds 23 St Andrew Square, Edinburgh, EH2 1BB
Orbis Investments (U.K.) Limited ( GBR ) Royal London UK Growth Trust 559.20 - 10.50 2.25 -14.70 0.62
Junior Gold C Acc 29.90 29.90 0.40 0.00 -40.57 1.14 28 Dorset Square, London, NW1 6QG enquiries@stewartinvestors.com
Royal London UK Income With Growth Trust 189.80 - 3.50 5.48 -6.73 0.66 Client Services: 0800 587 4141
MFM Bowland 306.94 306.94 3.04 0.99 -16.51 5.61 www.orbis.com 0800 358 2030
Regulated Royal London US Growth Trust 358.40 - 5.50 0.00 1.76 12.79 Dealing Line: 0800 587 3388
MFM Hathaway Inc 133.60 133.60 -4.24 1.02 -20.14 -1.33
Orbis OEIC Global Cautious Standard £ 11.43 - -0.03 0.00 4.96 3.88 Additional Funds Available Authorised Funds
MFM UK Primary Opportunities A Inc 397.58 397.58 6.46 1.08 -19.77 -0.30 Please see www.royallondon.com for details SI Asia Pacific A Acc 1574.24 - 7.66 0.00 -4.09 7.19
Orbis OEIC Global Balanced Standard £ 18.18 - -0.05 2.14 7.31 8.93 Unicorn Asset Management Ltd ( UK )
SI Asia Pacific A Inc £ 2.79 - 0.01 0.00 -4.26 6.76 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
Orbis OEIC Global Equity Standard £ 20.56 - -0.13 2.08 -3.68 8.54
SI Asia Pacific Leaders A Acc 870.27 - 2.80 0.00 -7.07 7.33 Authorised Inv Funds
Orbis OEIC UK Equity Standard £ 9.96 - 0.13 3.65 -5.99 7.20
SI Asia Pacific Leaders A Inc £ 2.96 - 0.01 0.00 -7.09 7.26 UK Growth A Inc 548.43 - 4.23 0.10 -29.95 -1.21
SI Asia Sustainability A Acc 721.81 - 1.14 0.00 -3.22 8.26 Mastertrust A Inc X F 535.51 - 6.62 0.50 -17.65 2.41
SI Global Emerging Mkts A Acc 768.81 - 1.40 2.44 -0.67 -0.71 UK Growth B Inc 551.03 - 4.26 1.03 -29.40 -0.48
SI Global Emerging Mkts Leaders A Acc 537.64 - 4.00 1.29 -4.00 -0.19 Mastertrust B Inc X F 479.49 - 5.94 1.34 -17.02 3.16
Marwyn Asset Management Limited ( CYM ) SI Global Emerging Mkts Sus A Acc 360.84 - 1.67 0.00 -10.37 1.78 Outstanding British Cos A Acc X F 257.35 - 2.68 0.51 -20.01 -4.96
Regulated SI Indian Sub-Cont A Acc 816.51 - -4.24 0.00 9.86 17.73 Outstanding British Cos B Acc X F 282.75 - 2.95 1.37 -19.39 -4.24
Marwyn Value Investors £ 329.72 - -6.14 0.00 - -7.17 SI Latin America A Acc £ 2.18 - -0.01 2.87 -4.66 -8.93 UK Smaller Cos A Inc X F 536.50 - 2.55 0.77 -26.31 0.91
SI Worldwide Equity A Acc £ 2.36 - 0.05 - 21.94 8.37 UK Smaller Cos B Inc X F 522.69 - 2.50 1.67 -25.74 1.65
SI Worldwide Equity A Inc £ 2.39 - 0.05 - 23.40 8.80 UK Income A Acc X F 269.10 - 2.80 5.58 -21.32 -4.10
SI Worldwide Leaders A Acc 552.80 - 1.60 0.00 -8.15 6.21 UK Income A Inc X F 180.04 - 1.88 5.76 -21.31 -4.26
SI Worldwide Sus A Acc £ 2.41 - 0.03 0.00 -17.37 3.52 UK Income B Acc X F 300.91 - 3.14 - -20.73 -3.38
SI Worldwide Sus A Inc £ 2.34 - 0.03 0.00 -17.29 3.65 UK Income B Inc X F 201.44 - 2.10 - -20.73 -3.52

McInroy & Wood Portfolios Limited ( UK )

Easter Alderston, Haddington, EH41 3SF 01620 825867
Authorised Inv Funds Ruffer LLP (1000)F ( UK )
Balanced Fund Personal Class Units 5836.40xd - 9.70 1.41 -1.67 5.84 65 Gresham Street, London, EC2V 7NQ
Order Desk and Enquiries: 0345 601 9610
Income Fund Personal Class Units 2807.80xd - 12.50 2.42 1.75 4.03
Platinum Capital Management Ltd Authorised Inv Funds
Emerging Markets Fund Personal Class Units 2266.70xd - -6.50 1.49 -3.89 1.42 Authorised Corporate Director - Link Fund Solutions
Other International Funds
Smaller Companies Fund Personal Class Units 5547.60xd - 48.60 1.33 -26.54 0.49 LF Ruffer Diversified Rtrn C Acc 101.25 - -0.17 0.89 -1.04 - Zadig Gestion (Memnon Fund) ( LUX )
Platinum All Star Fund - A $ 143.77 - - - - 2.91 FCA Recognised
Platinum Global Growth UCITS Fund $ 7.78 - 0.00 0.00 -43.79 -9.42 LF Ruffer Diversified Rtrn C Inc 100.40 - -0.18 0.99 -1.03 - Memnon European Fund - Class U2 GBP £ 209.16 - 0.36 0.00 -4.01 5.43
Platinum Essential Resources UCITS Fund SICAV USD Class E $ 11.05 - 0.13 0.00 14.63 7.40 LF Ruffer European C Acc 687.52 - -21.49 0.91 -23.71 4.45
Platinum Global Dividend UCITS Fund $ 43.37 - -0.15 0.00 -23.63 -8.48 LF Ruffer European C Inc 123.33 - -3.86 0.94 -23.70 4.45
LF Ruffer European O Acc 666.81 - -20.89 0.59 -23.94 4.13
LF Ruffer Equity & General C Acc 532.94 - -5.69 0.82 -5.33 6.47
LF Ruffer Equity & General C Inc 481.49 - -5.14 0.82 -5.32 6.47
Milltrust International Managed Investments ICAV( IRL ) LF Ruffer Equity & General O Acc 516.94 - -5.54 0.50 -5.62 6.15
mimi@milltrust.com, +44(0)20 8123 8316 www.milltrust.com LF Ruffer Equity & General O Inc 475.66 - -5.10 0.50 -5.61 6.15
Regulated LF Ruffer Gold C Acc 211.84 - -6.31 0.00 -12.31 0.42
British Innovation Fund £ 121.92 - 2.89 0.00 - - LF Ruffer Gold C Inc 128.21 - -3.82 0.00 -12.31 0.42 Stonehage Fleming Investment Management Ltd ( IRL )
MAI - Buy & Lease (Australia)A$ 103.45 - 0.50 0.00 -16.53 1.41 Polar Capital Funds Plc ( IRL ) LF Ruffer Gold O Acc 205.40 - -6.13 0.00 -12.58 0.12 www.stonehagefleming.com/gbi
MAI - Buy & Lease (New Zealand)NZ$ 91.20 - -6.06 0.00 -7.20 -2.67 Regulated enquiries@stonehagefleming.com
Automation & Artificial Intelligence CL I USD Acc $ 12.53 12.53 0.15 0.00 -34.36 3.57 LF Ruffer Japanese C Inc 152.49 - -1.52 0.26 -14.51 6.81
Milltrust Global Emerging Markets Fund - Class A $ 84.91 - 0.31 0.00 -29.60 -0.85 Regulated
Asian Starts I USD Acc $ $ 11.98 - -0.19 0.00 -35.94 2.21 LF Ruffer Japanese C Acc 328.52 - -3.28 0.26 -14.51 6.81 SF Global Best Ideas Eq B USD ACC $ 200.15 - 2.54 0.00 -27.72 2.93
Biotechnology I USD $ 35.87 35.87 0.60 0.00 -14.21 18.27 LF Ruffer Japanese O Acc X 318.20 - -3.20 0.00 -14.78 6.48 SF Global Best Ideas Eq D GBP INC £ 270.27 - -0.51 0.00 -12.29 7.18
China Stars I USD Acc $ $ 9.37 9.37 -0.18 0.00 -36.47 -2.82 LF Ruffer Total Return C Acc 547.66 - 5.22 2.51 -0.30 6.97
Emerging Market Stars I USD Acc $ 9.76 - -0.13 0.00 -36.17 0.38 LF Ruffer Total Return C Inc 341.55 - 3.25 2.56 -0.30 6.96
European Ex UK Inc EUR Acc € 12.68 12.68 0.02 0.00 -2.46 0.94 LF Ruffer Total Return O Acc 531.15 - 5.04 2.52 -0.60 6.65
Financial Opps I USD $ 12.41 - 0.25 2.91 -23.03 0.52 LF Ruffer Total Return O Inc 331.06 - 3.13 2.57 -0.61 6.64
Global Convertible I USD $ 12.64 12.64 0.06 0.00 -22.45 -1.18
Milltrust International Managed Investments SPC Global Insurance I GBP £ 9.53 - 0.13 0.00 20.62 8.16
em@milltrust.com, +44(0)20 8123 8316, www.milltrust.com
Regulated Global Technology I USD $ 57.84 - 0.50 0.00 -37.27 5.12
Milltrust Alaska Brazil SP A $ 82.49 - 0.97 0.00 13.68 - Healthcare Blue Chip Fund I USD Acc $ 16.81 16.81 0.21 0.00 -7.48 9.42
Milltrust Laurium Africa SP A $ 87.73 - -0.19 0.00 -16.00 - Healthcare Dis I Acc USD $ $ 12.07 - 0.15 0.00 -22.18 -
Milltrust Marcellus India Fund $ 126.87 - -0.86 0.00 -16.15 - Healthcare Opps I USD $ 59.95 - 0.61 0.00 -12.72 8.90
Milltrust Singular ASEAN SP Founders $ 122.08 - -0.05 0.00 -24.88 - Income Opportunities B2 I GBP Acc £ 2.74 2.74 -0.01 0.00 -2.04 6.02
Milltrust SPARX Korea Equity SP A $ 85.82 - -1.99 0.00 -42.57 - Japan Value I JPY ¥ 139.82 139.82 2.18 0.00 5.90 6.72
Milltrust Xingtai China SP A $ 83.02 - -0.86 0.00 -42.14 - North American I USD $ 29.78 29.78 0.59 0.00 -18.63 6.06
The Climate Impact Asia Fund SP (Class A) $ 69.73 - -0.07 0.00 -30.87 - Smart Energy I USD Acc $ $ 7.59 7.59 0.06 0.00 -23.64 -
The Climate Impact Asia Fund (Class B) $ 69.22 - -0.07 0.00 -31.21 - Smart Mobility I USD Acc $ $ 7.22 7.22 0.04 0.00 -28.44 -
UK Val Opp I GBP Acc £ 10.69 10.69 0.21 0.00 -25.35 -2.66

Superfund Asset Management GmbH

www.superfund.com, +43 (1) 247 00
Other International Funds
Other International Funds
Superfund Green Gold $ 1239.13 - 9.40 0.00 -18.55 5.29
Rubrics Global UCITS Funds Plc ( IRL )
www.rubricsam.com Superfund Green Silver $ 985.48 - 6.72 0.00 -28.81 3.22
Ministry of Justice Common Investment Funds ( UK ) Regulated Regulated
Property & Other UK Unit Trusts Private Fund Mgrs (Guernsey) Ltd ( GSY )
Regulated Rubrics Emerging Markets Fixed Income UCITS Fund $ 129.35 - -0.34 0.00 -7.07 -2.04 Superfund Green US$ $ 1044.90 - 8.24 0.00 -10.52 4.09
The Equity Idx Tracker Fd Inc 1754.00 - -3.00 2.64 -7.79 2.68
Distribution Units Monument Growth 11/10/2022 £ 516.75 521.79 -7.86 1.08 -4.63 1.79 Rubrics Global Credit UCITS Fund $ 16.22 - -0.04 0.00 -10.45 -1.48
Rubrics Global Fixed Income UCITS Fund $ 166.01 - -0.56 0.00 -7.72 -1.40

Thesis Unit Trust Management Limited ( UK )

Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Prusik Investment Management LLP ( IRL ) Authorised Funds
Enquiries - 0207 493 1331 Scottish Friendly Asset Managers Ltd ( UK )
Regulated Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 TM New Court Fund A 2011 Inc £ 17.22 - 0.20 0.00 -13.25 2.77
Prusik Asian Equity Income B Dist $ 159.52 - 1.33 4.96 -10.53 -1.37 Authorised Inv Funds TM New Court Fund - A 2014 Acc £ 17.37 - 0.20 0.00 -13.24 2.78
Prusik Asia Emerging Opportunities Fund A Acc $ 178.49 - 0.10 0.00 -24.99 5.25 Managed Growth ♦ 324.40 - 3.00 0.00 -6.62 6.73 TM New Court Equity Growth Fund - Inc £ 18.44 - 0.26 0.00 -16.22 3.08
Prusik Asia Fund U Dist. £ 219.27 - 0.42 0.00 -14.53 5.61 UK Growth ♦ 372.30 - 5.20 0.00 -13.12 7.14
Prusik Asia Sustainable Growth Fund A Acc $ 82.13 - 0.78 - - -

Mirabaud Asset Management ( LUX )

www.mirabaud.com, marketing@mirabaud-am.com
Conviction based investment vehicles details available here www.mirabaud-am.com
Regulated Purisima Investment Fds (UK) (1200)F ( UK )
Mir. - Glb Strat. Bd I USD $ 109.28 - -0.31 0.00 -12.10 -1.53 65 Gresham Street, London, EC2V 7NQ
Mir. - DiscEur D Cap GBP £ 149.00 - -0.11 0.00 -30.56 2.93 Order Desk and Enquiries: 0345 922 0044
Authorised Inv Funds
Mirabaud - UK Equity High Alpha £ 120.94 - 1.45 0.00 -27.56 -0.46 Authorised Corporate Director - Link Fund Solutions
Global Total Fd PCG A 351.70 - 5.19 0.00 -12.46 9.15
Global Total Fd PCG B 346.78 - 5.11 0.00 -12.68 8.88
Global Total Fd PCG INT 340.51 - 5.02 0.00 -12.89 8.61

Toscafund Asset Management LLP ( UK )

SICO BSC (c) ( BHR ) www.toscafund.com
+973 17515031. Authorised Funds
www.sicobank.com Aptus Global Financials B Acc £ 4.33 - 0.05 4.50 -12.07 7.52
Khaleej Equity Fund $ 613.87 - -12.47 0.00 17.28 19.37 Aptus Global Financials B Inc £ 2.80 - 0.03 4.65 -12.07 9.56
SICO Kingdom Equity Fund $ 37.25 - -0.53 0.00 15.21 20.31
Purisima Investment Fds (CI) Ltd ( JER ) SICO Gulf Equity Fund $ 170.59 - -3.37 0.00 23.60 16.85
Regulated
PCG B X 248.57 - 1.55 0.00 -27.12 4.13
PCG C X 241.91 - 1.51 0.00 -27.27 3.92

Toscafund Asset Management LLP

www.toscafund.com
Tosca A USD $ 399.04 - -22.49 0.00 -0.08 8.50

Guide to Data
The fund prices quoted on these pages are supplied by the operator of the relevant fund. Details of funds published on these pages, including prices, are for the purpose of information only and should only be used as a guide. The Financial Times Limited makes no representation as to their accuracy or completeness and they should not be relied upon when making an
investment decision.
The sale of interests in the funds listed on these pages may, in certain jurisdictions, be restricted by law and the funds will not necessarily be available to persons in all jurisdictions in which the publication circulates. Persons in any doubt should take appropriate professional advice. Data collated by Morningstar. For other queries contact reader.enquiries@ft.com +44
(0)207 873 4211.
The fund prices published in this edition along with additional information are also available on the Financial Times website, www.ft.com/funds. The funds published on these pages are grouped together by fund management company.
Prices are in pence unless otherwise indicated. The change, if shown, is the change on the previously quoted figure (not all funds update prices daily). Those designated $ with no prefix refer to US dollars. Yield percentage figures (in Tuesday to Saturday papers) allow for buying expenses. Prices of certain older insurance linked plans might be subject to capital gains tax on
sales.
Guide to pricing of Authorised Investment Funds: (compiled with the assistance of the IMA. The Investment Association, Camomile Court 23 Camomile Street, London EC3A 7LL. Tel: +44 (0)20 7831 0898.)
OEIC: Open-Ended Investment Company. Similar to a unit trust but using a company rather than a trust structure.
Different share classes are issued to reflect a different currency, charging structure or type of holder.
Selling price: Also called bid price. The price at which units in a unit trust are sold by investors.
Buying price: Also called offer price. The price at which units in a unit trust are bought by investors. Includes manager’s initial charge.
Single price: Based on a mid-market valuation of the underlying investments. The buying and selling price for shares of an OEIC and units of a single priced unit trust are the same.
Treatment of manager’s periodic capital charge: The letter C denotes that the trust deducts all or part of the manager’s/operator’s periodic charge from capital, contact the manager/operator for full details of the effect of this course of action.
Exit Charges: The letter E denotes that an exit charge may be made when you sell units, contact the manager/operator for full details.
14
Fund
abrdn Capital (CI) Limited
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
abrdn Capital Offshore Strategy Fund Limited
Bridge Fund
Global Equity Fund
Global Fixed Interest Fund
Income Fund
Sterling Fixed Interest Fund
UK Equity Fund
Algebris Investments
Regulated
Algebris Financial Credit I EUR
Algebris Financial Credit R EUR
Algebris Financial Credit Rd EUR € 83.63
Algebris Financial Income I EUR
Algebris Financial Income R EUR € 148.02
Algebris Financial Income Rd EUR € 90.73
Algebris Financial Equity B EUR
Algebris Financial Equity R EUR
Algebris IG Financial Credit I EUR € 88.80
Algebris IG Financial Credit R EUR € 87.49
Algebris Global Credit Opportunities I EUR € 116.77
Algebris Global Credit Opportunities R EUR € 114.08
Algebris Global Credit Opportunities Rd EUR € 100.29
Algebris Core Italy I EUR
Algebris Core Italy R EUR
The Antares European Fund Limited
Other International
AEF Ltd Usd
AEF Ltd Eur
Artemis Fund Managers Ltd (1200)F
57 St. James's Street, London SW1A 1LD 0800 092 2051
Authorised Inv Funds
Artemis Corporate Bond I Acc
Artemis Positive Future Fund
Artemis Target Return Bond I Acc
Ashmore Group
61 Aldwych, London WC2B 4AE. Dealing team: +352 27 62 22 233
Authorised Inv Funds
Emerging Markets Equity Fund
Emerging Markets Equity ESG Fund $ 114.22
Emerging Markets Frontier Equity Fund $ 175.07
Emerging Markets Blended Debt Fund $ 47.28
Emerging Markets Blended Debt ESG Fund $ 75.65
Emerging Markets Active Equity Fund $ 106.06
Emerging Markets Corporate Debt Fund $ 56.11
Emerging Markets Debt Fund
Emerging Markets Local Currency Bond Fund $ 55.49
Atlantas Sicav
Regulated
American Dynamic
American One
Bond Global
Eurocroissance
Far East
★ FINANCIAL TIMES Tuesday 18 October 2022
MANAGED FUNDS SERVICE
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 Data Provided by
(JER) EdenTree Investment Management Ltd (UK) Janus Henderson Investors (UK) Omnia Fund Ltd Ruffer LLP (1000)F (UK) Toscafund Asset Management LLP
www.morningstar.co.uk
PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Other International Funds 65 Gresham Street, London, EC2V 7NQ www.toscafund.com Data as shown is for information purposes only. No offer
Authorised Inv Funds www.janushenderson.com Estimated NAV $ 955.58 - 173.14 0.00 Order Desk and Enquiries: 0345 601 9610 Tosca A USD $ 397.17 - -1.87 0.00 is made by Morningstar or this publication.
EdenTree Short Dated Bond Cls B 91.35 - 0.19 0.78 Authorised Inv Funds Authorised Inv Funds Tosca Mid Cap GBP £ 169.38 - -22.79 0.00
£ 2.0441 - -0.0230 2.04 Janus Henderson Instl UK Idx Opps A Acc £ 1.03 - 0.01 3.21 Authorised Corporate Director - Link Fund Solutions Tosca Opportunity B USD $ 258.80 - -15.18 0.00
£ 3.0510 - -0.0524 1.28 LF Ruffer Diversified Rtrn C Acc 102.64 - 1.39 0.88 Pegasus Fund Ltd A-1 GBP £ 40.34 - -2.47 0.00
£ 0.6968 - -0.0003 6.57 LF Ruffer Diversified Rtrn C Inc 101.79 - 1.39 0.97
Guide to Data
£ 0.5919 - -0.0036 3.36 LF Ruffer European C Acc 687.52 - -21.49 0.91
£ 0.6263 - 0.0002 3.91 LF Ruffer European C Inc 123.33 - -3.86 0.94
£ 1.7753 - -0.0059 4.24 LF Ruffer European O Acc 666.81 - -20.89 0.59
LF Ruffer Equity & General C Acc 532.94 - -5.69 0.82 The fund prices quoted on these pages are
Blue Whale Investment Funds ICAV (IRE) Orbis Investments (U.K.) Limited (GBR) LF Ruffer Equity & General C Inc 481.49 - -5.14 0.82 supplied by the operator of the relevant fund.
www.bluewhale.co.uk, info@bluewhale.co.uk Euronova Asset Management UK LLP (CYM) 28 Dorset Square, London, NW1 6QG LF Ruffer Equity & General O Acc 516.94 - -5.54 0.50 Details of funds published on these pages,
Regulated M & G Securities (1200)F (UK) www.orbis.com 0800 358 2030 LF Ruffer Equity & General O Inc 475.66 - -5.10 0.50
FCA Recognised - Ireland UCITS
PO Box 9038, Chelmsford, CM99 2XF
including prices, are for the purpose of
Smaller Cos Cls One Shares € 49.94 - 0.25 0.00 Regulated Troy Asset Mgt (1200) (UK)
Blue Whale Growth USD T $ 7.53 - -0.21 0.00
www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472
LF Ruffer Gold C Acc 211.84 - -6.31 0.00 information only and should only be used as a
Smaller Cos Cls Two Shares € 31.90 - 0.15 0.00 Orbis OEIC Global Cautious Standard £ 11.40 - -0.03 0.00 65 Gresham Street, London, EC2V 7NQ
Authorised Inv Funds
LF Ruffer Gold C Inc 128.21 - -3.82 0.00 guide. The Financial Times Limited makes no
Smaller Cos Cls Three Shares € 15.92 - 0.08 0.00 Orbis OEIC Global Balanced Standard £ 18.12 - -0.06 2.14 Order Desk and Enquiries: 0345 608 0950
M&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.05 - 0.00 2.12
LF Ruffer Gold O Acc 205.40 - -6.13 0.00 representation as to their accuracy or
Smaller Cos Cls Four Shares € 20.98 - 0.10 0.00 Orbis OEIC Global Equity Standard £ 20.47 - -0.09 2.08 Authorised Inv Funds
M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 37.12 - 0.02 1.70
LF Ruffer Japanese C Inc 152.49 - -1.52 0.26 completeness and they should not be relied
Orbis OEIC UK Equity Standard £ 10.01 - 0.05 3.65 Authorised Corporate Director - Link Fund Solutions
M&G Charity Multi Asset Fund Inc £ 0.83 - -0.01 3.92
LF Ruffer Japanese C Acc 328.52 - -3.28 0.26 upon when making an investment decision.
LF Ruffer Total Return C Acc 547.66 - 5.22 2.51 Trojan Investment Funds
M&G Charity Multi Asset Fund Acc £ 98.45 - -0.31 3.78
LF Ruffer Total Return C Inc 341.55 - 3.25 2.56 Trojan Ethical O Acc 123.17 - -0.58 0.00 The sale of interests in the funds listed on these
LF Ruffer Total Return O Acc 531.15 - 5.04 2.52 Trojan Ethical Global Inc O Acc 97.88 - -1.05 - pages may, in certain jurisdictions, be restricted
LF Ruffer Total Return O Inc 331.06 - 3.13 2.57 Trojan Ethical Global Inc O Inc 96.10 - -1.03 - by law and the funds will not necessarily be
Brooks Macdonald International Fund Managers Limited (JER) Trojan Ethical O Inc 122.92 - -0.58 0.00 available to persons in all jurisdictions in which
5 Anley Street, St Helier, Jersey, JE2 3QE the publication circulates. Persons in any doubt
+44 (0) 1534 700 104 (Int.) +44 (0) 800 735 8000 (UK) should take appropriate professional advice.
Brooks Macdonald International Investment Funds Limited Fidelity Investments International Data collated by Morningstar. For other
Euro High Income € 1.1951 - -0.0013 2.50 Other International Funds queries contact reader.enquiries@ft.com
High Income £ 0.6121 - -0.0002 3.77 Emerging Mkts NAV £ 7.21 - -0.16 2.01 +44 (0)207 873 4211.
MMIP Investment Management Limited (GSY)
(IRL) Sterling Bond £ 1.1626 - -0.0002 2.06 Regulated
Brooks Macdonald International Multi Strategy Fund Limited The fund prices published in this edition along
Multi-Manager Investment Programmes PCC Limited
€ 158.72 - 0.44 0.00 Balanced Strategy A £ 0.8603 - 0.0021 0.60 Rubrics Global UCITS Funds Plc (IRL) with additional information are also available
UK Equity Fd Cl A Series 01 £ 2667.84 2697.24 -305.31 0.00
€ 136.68 - 0.37 0.00 Balanced Strategy £ 0.8601 - 0.0021 0.09 www.rubricsam.com Zadig Gestion (Memnon Fund) (LUX) on the Financial Times website, www.ft.com/
Diversified Absolute Rtn Fd USD Cl AF2 $ 1635.28 - 2.47 0.00
- 0.23 5.66 Cautious Balanced Strategy A £ 0.8404 - -0.0013 1.16 Regulated FCA Recognised funds. The funds published on these pages are
Diversified Absolute Return Stlg Cell AF2 £ 1520.35 - 0.98 0.00
€ 162.46 - 1.01 0.00 Growth Strategy A £ 0.8588 - 0.0029 0.53 Rubrics Emerging Markets Fixed Income UCITS Fund $ 129.33 - -0.02 0.00 Memnon European Fund - Class U2 GBP £ 211.44 - 2.28 0.00 grouped together by fund management
Global Equity Fund A Lead Series £ 1653.91 1659.58 -103.61 0.00
- 0.92 0.00 Rubrics Global Credit UCITS Fund $ 16.21 - -0.01 0.00 company.
High Growth Strategy A £ 0.8567 - 0.0042 0.13
- 0.58 4.24 Cautious Balanced Strategy £ 1.1760 - -0.0019 0.00 Rubrics Global Fixed Income UCITS Fund $ 165.68 - -0.33 0.00
€ 145.11 - 0.19 0.00
FIL Investment Services (UK) Limited (1200)F (UK) Prices are in pence unless otherwise indicated.
Growth Strategy £ 1.7984 - 0.0061 0.00
€ 122.20 - 0.15 0.00
Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, KT20 6RP
Platinum Capital Management Ltd The change, if shown, is the change on the
High Growth Strategy £ 2.5142 - 0.0124 0.00 Callfree: Private Clients 0800 414161
- -0.11 0.00 Other International Funds previously quoted figure (not all funds update
US$ Growth Strategy $ 1.4720 - -0.0028 0.00 Broker Dealings: 0800 414 181
Platinum All Star Fund - A $ 143.77 - - - prices daily). Those designated $ with no prefix
- -0.11 0.00 Dealing Daily. Initial Charge Nil for A classes and up to 2% for other classes OEIC Funds
Platinum Global Growth UCITS Fund $ 7.90 - 0.12 0.00 refer to US dollars. Yield percentage figures (in
- -0.09 0.00
Index Sterling Corporate Bond Fund P-ACC-GBP £ 0.76 - 0.00 2.13
Platinum Essential Resources UCITS Fund SICAV USD Class E $ 11.42 - 0.37 0.00
Tuesday to Saturday papers) allow for buying
- -0.09 0.00
Slater
Sustainable Multi Asset Balanced Fund W-ACC-GBP £ 0.89 - 0.00 0.15
Platinum Global Dividend UCITS Fund $ 44.25 - 0.88 0.00
expenses. Prices of certain older insurance
- -0.08 0.45 Marwyn Asset Management Limited (CYM)
American Fund W-ACC-GBP £ 51.11 - -0.80 0.00 linked plans might be subject to capital gains
€ 127.69 - 1.04 0.00 Regulated
Investments
Cash Fund W-ACC-GBP £ 1.02 - 0.00 0.00 tax on sales.
€ 121.35 - 1.00 0.00 Marwyn Value Investors £ 329.72 - -6.14 0.00
Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 1.54 - 0.00 4.95
Sustainable Global Equity Fund W-ACC-GBP £ 31.35 - -0.44 0.00 Guide to pricing of Authorised Investment
Global High Yield Fund W-ACC-GBP £ 12.96 - -0.01 5.88 Funds: (compiled with the assistance of the
Japan Fund W-ACC-GBP £ 5.25 - -0.11 1.29 IMA. The Investment Association, Camomile
CG Asset Management Limited (IRL) Court 23 Camomile Street, London EC3A 7LL.
Japan Smaller Companies Fund W-ACC-GBP £ 3.26 - -0.08 0.63
25 Moorgate, London, EC2R 6AY
Select 50 Balanced Fund PI-ACC-GBP £ 1.08 - 0.01 1.05 Tel: +44 (0)20 7831 0898.)
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859
Special Situations Fund W-ACC-GBP £ 38.98 - 0.02 2.20
FCA Recognised Polar Capital Funds Plc (IRL)
Short Dated Corporate Bond Fund W-ACC-GBP £ 10.11 - 0.02 4.21 OEIC: Open-Ended Investment Company.
CG Portfolio Fund Plc Regulated
Sustainable Water & Waste W-ACC-GBP £ 1.06 - -0.01 0.15 Similar to a unit trust but using a company
Absolute Return Cls M Inc £ 133.91 133.91 0.30 1.36 Automation & Artificial Intelligence CL I USD Acc $ 12.35 12.35 -0.18 0.00
rather than a trust structure.
Capital Gearing Portfolio GBP P £ 36928.52 36928.52 89.07 1.05 Sustainable Water & Waste W-INC-GBP £ 1.05 - -0.01 0.15 Asian Starts I USD Acc $ $ 12.18 - 0.20 0.00
Capital Gearing Portfolio GBP V £ 179.60 179.60 0.43 1.05 UK Select Fund W-ACC-GBP £ 3.37 - -0.02 2.18 Biotechnology I USD $ 35.72 35.72 -0.15 0.00 Slater Investments Ltd (UK)
$ 546.01 - -4.16 0.00
Global Enhanced Income W-ACC-GBP £ 2.15 - -0.01 4.37
Different share classes are issued to reflect a
Dollar Fund Cls D Inc £ 175.65 175.65 0.08 1.39 China Stars I USD Acc $ $ 9.49 9.49 0.12 0.00 www.slaterinvestments.com; Tel: 0207 220 9460
€ 505.02 - -4.24 0.00 different currency, charging structure or type of
Dollar Hedged GBP Inc £ 91.83 91.83 0.17 1.74 Index UK Gilt Fund P-ACC-GBP £ 0.71 - 0.00 0.62 Emerging Market Stars I USD Acc $ 9.85 - 0.09 0.00 FCA Recognised
holder.
Real Return Cls A Inc £ 208.13 208.13 -0.10 1.43 Sustainable Multi Asset Conservative Fund W-ACC-GBP £ 0.85 - 0.00 0.16 European Ex UK Inc EUR Acc € 12.81 12.81 0.13 0.00 Slater Growth A Acc 608.33 608.33 2.36 0.00
Sustainable Multi Asset Growth Fund W-ACC-GBP £ 0.91 - 0.00 0.08 Financial Opps I USD $ 12.35 - -0.06 2.91 Slater Income A Inc 133.58 133.58 0.30 5.22
Selling price: Also called bid price. The price
Global Convertible I USD $ 12.56 12.56 -0.08 0.00 Slater Recovery A Acc 319.17 319.17 1.52 0.00
at which units in a unit trust are sold by
Global Insurance I GBP £ 9.40 - -0.13 0.00 Slater Artorius 276.49 276.49 -10.81 0.33
investors.
Global Technology I USD $ 56.35 - -1.49 0.00
Healthcare Blue Chip Fund I USD Acc $ 16.79 16.79 -0.02 0.00 Buying price: Also called offer price. The price
Milltrust International Managed Investments ICAV (IRL) Healthcare Dis I Acc USD $ $ 11.86 - -0.21 0.00 at which units in a unit trust are bought by
(UK) mimi@milltrust.com, +44(0)20 8123 8316 www.milltrust.com Healthcare Opps I USD $ 59.26 - -0.69 0.00 investors. Includes manager’s initial charge.
Regulated Income Opportunities B2 I GBP Acc £ 2.75 2.75 0.01 0.00
Chartered Asset Management Pte Ltd British Innovation Fund £ 121.92 - 2.89 0.00 Japan Value I JPY ¥ 138.40 138.40 -1.42 0.00 Single price: Based on a mid-market valuation
89.70 - 1.40 3.14 Other International Funds Findlay Park Funds Plc (IRL)
MAI - Buy & Lease (Australia) A$ 103.45 - 0.50 0.00 North American I USD $ 29.11 29.11 -0.67 0.00 of the underlying investments. The buying and
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
63.21 - 0.73 0.00 CAM-GTF VCC $ 276530.19 276530.19 -10829.19 - MAI - Buy & Lease (New Zealand)NZ$ 91.20 - -6.06 0.00 Smart Energy I USD Acc $ $ 7.40 7.40 -0.19 0.00 selling price for shares of an OEIC and units of a
FCA Recognised
100.97 - 0.27 2.88 CAM GTi VCC $ 780.49 - -32.39 - Milltrust Global Emerging Markets Fund - Class A $ 84.46 - -0.45 0.00 Smart Mobility I USD Acc $ $ 7.11 7.11 -0.11 0.00 single priced unit trust are the same.
American EUR Unhedged Class € 150.35 - -5.00 0.00
RAIC VCC $ 1.64 1.64 0.03 2.06 UK Val Opp I GBP Acc £ 10.70 10.70 0.01 0.00
American Fund USD Class $ 146.64 - -4.31 0.00
Treatment of manager’s periodic capital
American Fund GBP Hedged £ 72.41 - -2.15 0.00
charge: The letter C denotes that the trust
American Fund GBP Unhedged £ 130.29 - -4.05 0.00
deducts all or part of the manager’s/operator’s
periodic charge from capital, contact the
manager/operator for full details of the effect of
this course of action.
Milltrust International Managed Investments SPC Exit Charges: The letter E denotes that an exit
Dodge & Cox Worldwide Funds (IRL) em@milltrust.com, +44(0)20 8123 8316, www.milltrust.com Private Fund Mgrs (Guernsey) Ltd (GSY) charge may be made when you sell units,
48-49 Pall Mall, London SW1Y 5JG. Regulated Regulated Stonehage Fleming Investment Management Ltd (IRL) contact the manager/operator for full details.
www.dodgeandcox.worldwide.com 020 3713 7664 Milltrust Alaska Brazil SP A $ 79.72 - -2.77 0.00 Monument Growth 11/10/2022 £ 516.75 521.79 -7.86 1.08 www.stonehagefleming.com/gbi
FCA Recognised Foord Asset Management Milltrust Laurium Africa SP A $ 87.53 - -0.20 0.00 enquiries@stonehagefleming.com Time: Some funds give information about the
Website: www.foord.com - Email: info@foord.com Regulated
Dodge & Cox Worldwide Funds plc - Global Bond Fund Milltrust Marcellus India Fund $ 127.58 - 0.71 0.00 timing of price quotes. The time shown
FCA Recognised - Luxembourg UCITS SF Global Best Ideas Eq B USD ACC $ 197.84 - -2.31 0.00 alongside the fund manager’s/operator’s name
EUR Accumulating Class € 16.01 - 0.02 0.00 Milltrust Singular ASEAN SP Founders $ 121.99 - -0.09 0.00
Foord International Fund | R $ 45.41 - -0.22 0.00 SF Global Best Ideas Eq D GBP INC £ 266.72 - -3.55 0.00 is the valuation point for their unit trusts/OEICs,
EUR Accumulating Class (H) € 9.74 - -0.03 0.00 Milltrust SPARX Korea Equity SP A $ 87.60 - 1.78 0.00
EUR Distributing Class € 11.74 - 0.02 0.95
Foord Global Equity Fund (Lux) | R $ 14.00 - -0.19 0.00
Milltrust Xingtai China SP A $ 84.27 - 1.26 0.00 unless another time is indicated by the symbol
EUR Distributing Class (H) € 7.08 - -0.03 1.06 Regulated
The Climate Impact Asia Fund SP (Class A) $ 70.24 - 0.51 0.00 alongside the individual unit trust/OEIC name.
GBP Distributing Class £ 12.52 - 0.11 0.84 Foord Global Equity Fund (Sing) | B $ 16.63 - -0.23 0.00 The Climate Impact Asia Fund (Class B) $ 69.73 - 0.51 0.00
GBP Distributing Class (H) £ 7.56 - -0.03 1.16 Foord International Trust (Gsy) $ 44.26 - -0.22 0.00
The symbols are as follows: ✠ 0001 to 1100
Prusik Investment Management LLP
hours; ♦ 1101 to 1400 hours; ▲ 1401 to 1700
USD Accumulating Class $ 11.24 - -0.04 0.00 (IRL)
Dodge & Cox Worldwide Funds plc-Global Stock Fund Enquiries - 0207 493 1331
$ 102.02 - -0.78 - Regulated hours; # 1701 to midnight. Daily dealing prices
USD Accumulating Share Class $ 25.12 - -0.55 0.00
- -0.76 - Prusik Asian Equity Income B Dist $ 158.12 - -1.40 4.96 are set on the basis of the valuation point, a
GBP Accumulating Share Class £ 36.97 - -0.34 0.00
- -0.20 - Prusik Asia Emerging Opportunities Fund A Acc $ 177.60 - -0.89 0.00 short period of time may elapse before prices
GBP Distributing Share class £ 24.95 - -0.23 0.57
Prusik Asia Fund U Dist. £ 216.91 - -2.36 0.00 become available. Historic pricing: The letter H
- -0.01 - EUR Accumulating Share Class € 38.79 - -0.65 0.00
Prusik Asia Sustainable Growth Fund A Acc $ 81.51 - -0.62 - denotes that the managers/operators will
- -0.02 - GBP Distributing Class (H) £ 11.73 - -0.25 0.61 normally deal on the price set at the most recent
- -1.16 - Mirabaud Asset Management (LUX)
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
GAM valuation. The prices shown are the latest
- -0.14 - www.mirabaud.com, marketing@mirabaud-am.com
USD Accumulating Share Class $ 34.03 - -0.62 0.00 funds@gam.com, www.funds.gam.com Conviction based investment vehicles details available here www.mirabaud-am.com
available before publication and may not be the
$ 50.74 - -0.02 -
GBP Accumulating Share Class £ 47.36 - -0.26 0.00 Regulated Regulated current dealing levels because of an intervening
- 0.02 -
GBP Distributing Share Class £ 28.43 - -0.16 0.18 LAPIS GBL TOP 50 DIV.YLD-Na-D £ 120.65 - -1.59 2.66 Mir. - Glb Strat. Bd I USD $ 109.21 - -0.07 0.00 portfolio revaluation or a switch to a forward
EUR Accumulating Share Class € 45.36 - -0.60 0.00 LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 93.76 - 0.19 1.05 Mir. - DiscEur D Cap GBP £ 148.94 - -0.06 0.00 pricing basis. The managers/operators must
GBP Distributing Class (H) £ 13.58 - -0.25 0.22 Mirabaud - UK Equity High Alpha £ 121.79 - 0.85 0.00
deal at a forward price on request, and may
move to forward pricing at any time. Forward
Superfund Asset Management GmbH
pricing: The letter F denotes that that
Purisima Investment Fds (CI) Ltd (JER)
Regulated www.superfund.com, +43 (1) 247 00 managers/operators deal at the price to be set
PCG B 252.08 - 3.51 0.00 Other International Funds at the next valuation.
PCG C 245.32 - 3.41 0.00 Other International Funds
Superfund Green Gold $ 1209.82 - -29.31 0.00
Investors can be given no definite price in
(LUX) advance of the purchase or sale being carried
Superfund Green Silver $ 934.17 - -51.31 0.00
out. The prices appearing in the newspaper are
$ 5890.59 - -107.23 0.00 Regulated
the most recent provided by the managers/
$ 6047.33 - -127.86 - Superfund Green US$ $ 1037.88 - -7.02 0.00
operators. Scheme particulars, prospectus, key
€ 1581.48 1581.48 10.04 0.00 features and reports: The most recent
€ 1202.49 - -7.39 0.00 particulars and documents may be obtained
$ 856.02 - -21.92 0.00 free of charge from fund managers/operators. *
Indicates funds which do not price on Fridays.
Charges for this advertising service are based
on the number of lines published and the
classification of the fund. Please contact
data@ft.com or call +44 (0)20 7873 3132 for
Guinness Global Investors further information.
Dragon Capital Guinness Global Equity Income Y GBP Dist £ 17.58 - -0.16 2.42 Oasis Crescent Global Investment Funds (UK) ICVC (UK)
www.dragoncapital.com Guinness Global Innovators Y GBP Acc £ 23.45 - -0.64 0.00 Regulated
Fund information:info@dragoncapital.com Guinness Sustainable Global Equity Y GBP Acc £ 10.31 - -0.17 0.00 Oasis Crescent Global Equity Fund USD A (Dist) $ 30.57 - -0.32 0.26
Other International Funds
Oasis Crescent Global Income Fund USD A (Dist) $ 9.80 - -0.01 2.68
Vietnam Equity (UCITS) Fund A USD $ 26.41 - 0.07 0.00 Oasis Crescent Global Low Equity Fund USD D (Dist) $ 11.30 - -0.07 0.61
Oasis Crescent Global Medium Equity Fund USD A (Dist) $ 12.46 - -0.09 0.16 Ram Active Investments SA
Oasis Crescent Global Property Equity Fund USD A (Dist) $ 6.85 - -0.08 0.73 www.ram-ai.com
Oasis Crescent Global Short Term Income Fund USD A (Dist) $ 0.93 - 0.00 1.84 Other International Funds
Oasis Crescent Variable Fund GBP A (Dist) £ 9.18 - 0.05 0.18 RAM Systematic Emerg Markets Eq $ 185.11 185.11 1.68 -
RAM Systematic European Eq € 471.16 471.16 4.44 -
Toscafund Asset Management LLP (UK)
RAM Systematic Funds Global Sustainable Income Eq $ 133.26 133.26 -0.58 0.00 www.toscafund.com
HPB Assurance Ltd RAM Systematic Global Eq Sustainable Alpha $ 113.73 113.73 0.27 - Authorised Funds
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 RAM Systematic Long/Short European Eq € 156.88 156.88 0.24 - Aptus Global Financials B Acc £ 4.33 - 0.00 4.50
International Insurances RAM Systematic US Sustainable Eq $ 309.70 309.70 -5.50 - Aptus Global Financials B Inc £ 2.80 - 0.00 4.65
Holiday Property Bond Ser 1 £ 0.48 - 0.00 0.00 RAM Tactical Global Bond Total Return € 134.53 134.53 -0.22 -
Holiday Property Bond Ser 2 £ 0.63 - 0.00 0.00 RAM Tactical II Asia Bond Total Return $ 139.69 139.69 -0.34 -
Tuesday 18 October 2022 ★ 15
16 ★ FINANCIAL TIMES Tuesday 18 October 2022

ARTS

Rojo says farewell with vintage Giselle

Fiercely individual: Tamara Rojo in Akram Khan’s ‘Giselle’ — Alastair Muir/Shutterstock
than sad, after her eloquent final per-
DANCE formance in the title role of Akram
Khan’s 2016 reimagining of Giselle. At
Giselle 48, Rojo is leaving ENB to direct San
Théâtre des Champs-Élysées, Paris Francisco Ballet and hanging up her
aaaaa pointe shoes in the process — in a ballet
she commissioned herself, no less.
Laura Cappelle It was a vintage Rojo interpretation,
fiercely individual and layered, her lush
Not many ballet dancers get to have a command of the classical technique
three-decade-long career on their own here blended with Khan’s Kathak-
terms. Injuries, ageing joints and man- flavoured fluidity.
agement changes are only a few of the Here and there came nostalgic flashes
obstacles. Yet Tamara Rojo, star and of her classical Giselle, in her look of
director of English National Ballet, who innocent joy early on with Isaac
retired from the stage last week at the Hernández (Rojo’s offstage partner dou-
Théâtre des Champs-Élysées in Paris, bling as her Albrecht); of her grief-
has handled them all with rare savvy. stricken Frida Kahlo in Annabelle
And she looked contented, rather Lopez Ochoa’s Broken Wings, when
Khan’s heroine mourned a pregnancy;
of her affinity for Kenneth MacMillan’s
expressive shapes as she reached for
Hernández in ghostly, tragic form.
Aspiring dancers would do well to
study the way Rojo took charge of her
career. In the 1990s she left Spain for the
UK, hopping from Scottish Ballet to ENB
and, finally, to the Royal Ballet. There,
she was one of a group of distinctive bal-
lerinas (Alina Cojocaru, Marianela
Nuñez and Leanne Benjamin among
them) who made every show in the late
2000s a thrilling contrast to the next.
A precocious interest in leadership
led her to return to ENB in 2012. While a
director doing double duty as princi-
pal dancer is unthinkable in most
companies today, it turned out to be a
mutually beneficial arrangement in this
case, because Rojo’s star power was a
boost to ENB on every level.
She has picked her roles carefully in
recent years, and since Khan’s Giselle
won’t be performed in the UK this sea-
son, Paris — where Rojo has been seen
only infrequently — was lucky to see her
final bow. Unfortunately, the tour’s pre-
senter, Albert Sarfati Productions, could
have advertised it more widely: quite a
few audience members seemed una-
ware of it, although the emotional bows
probably clued them in.
Rojo generously shared her farewell
with departing ENB first artist Stina
Quagebeur, who took one final stab at
the role she originated in Khan’s pro-
duction. As Myrtha — queen of the act-
two Wilis, here the vengeful ghosts of
factory workers — she hovered disquiet-
ingly on pointe as she pushed Giselle to
kill Albrecht, a murder-whisperer at the
heart of a horror story. Her dramatic
intelligence will no doubt serve her well
in her second career as a dance-maker,
since she will remain with ENB as asso-
ciate choreographer.
When Rojo took Quagebeur by the
hands to bring her front and centre,
and handed her one of the red roses
she had been showered with moments
earlier, it was a reminder of the jug-
gling act this boldest of ballerinas
embarked on a decade ago — nurturing
artists while leading by example
onstage. Rojo pulled it off; now another
chapter beckons in San Francisco,
behind the scenes.
DA N C E
Peaky Blinders: The
Redemption of Thomas Shelby
Troubadour Wembley Park Theatre,
London
aaaae
Louise Levene
For a while it seemed as if Rambert
was going to stick to a textbook
combination of late-20th-century
modern and new commissions,
but Benoit Swan Pouffer, artistic
director since 2018, has taken a
sudden lurch into dance theatre
with a national tour of Peaky
Blinders: The Redemption of Thomas
Shelby. Powerfully danced, sharply
suited and blessed with a piledriv-
ing score, the result is an exhilarat-
ing two-hour spectacle.
The cult BBC TV series, six sea-
sons in all, tracks the fortunes of
the Shelby brothers. Having sur-
vived the hell of the first world war
trenches, they make their way
home to Birmingham minus any
semblance of moral compass and
embark on a life of organised
crime. The show’s gleefully anach-
ronistic soundtrack spawned a
music festival in 2019 which
included a 12-minute dance
sequence by Rambert that
inspired the current production.
The scenario, devised by the
story’s creator Steven Knight, is
part-prequel, part-mash-up,
focusing on our anti-hero’s love
affair with Grace Burgess and his
despair at her murder. Recognis-
ing that not everyone in the audi-
ence will have binge-watched the
box set, there is a (taped) narra-
tive voiceover by performance
poet Benjamin Zephaniah, street
preacher in the series, who help-
fully name-checks the members of
the Shelby gang.
Moi Tran’s standing set cuts a
huge rectangular moat around the
central performance space — a bit
like an elephant enclosure. This is
especially useful for the opening
scenes of trench warfare but is also
an ideal means of getting dancers
on and off, as is Natasha Chivers’s
lighting, which allows characters
to manifest from the gloom with
magical ease.
Richard Gellar’s costumes
suggest the period but aren’t
slaves to it. The Blinders’ caps
have the requisite twinkle of razor
blades in their brims. Aunt Polly
sports asymmetric plaids — imag-
ine a riding habit designed by
Alexander McQueen.
Pouffer is most at home with
ensembles and Rambert’s dancers
spin and kick and roll with tireless
energy and verve, storming down
the gangways to terrorise the audi-
ence. There is a deranged Charles-
ton for the nightclub orgy (cue:
blond hoochie-coochie dancer
with full beard), a spectral vision
scene in an opium den and a
vicious punch-up fuelled by the
pogo pulse of Wire’s “12 XU”
and timed to perfection by fight
director and veteran stunt man
Adrian Derrick-Palmer. There are
anguished solos for Thomas
Shelby — Guillaume Quéau on
whistle-worthy form (if the
excitable front stalls were any
The Blinders’ caps
have the requisite
twinkle of razor
blades in their brims
guide) — and Naya Lovell is a
sleek, sinuous Grace, though
Pouffer’s pairwork isn’t strong or
distinctive enough to convince us
of the love story that supposedly
spins the plot.
Matthew Bourne would have
made us care more and Mark
Bruce would have delivered gothic
sleaze on a fraction of the budget,
but it is still a rattling ride. Energy
levels are maintained by the score,
a dazzling playlist of Blinders
favourites — notably Nick Cave’s
“Red Right Hand” — knitted
together by composer Roman
GianArthur and played live
upstage by James Douglas, The
Last Morrell and musical director
Yaron Engler, a regular Hofesh
Shechter collaborator whose vir-
tuoso percussion will recalibrate
your pulse.
At the Troubadour to November 6,
then touring to May 27 2023
peakyblindersdance.com

theatrechampselysees.fr Naya Lovell and Guillaume Quéau in ‘Peaky Blinders’ — Johan Persson

Roxy Music go back to the retro-future

POP
Roxy Music
O2 Arena, London
aaaee
Ludovic Hunter-Tilney
It is 50 years since Roxy Music released
their self-titled debut, “an extraordi-
nary album, from an extraordinary
group”, as the New Musical Express
raved at the time. It was an impeccably
staged collision of glam pop, juke-joint
R&B, doo-wop and electronic music,
topped by the seductive oddity of Bryan
Ferry’s quavering croon. Amid stylised
photos of the band with rockabilly quiffs
and leopard-print shirts, the album’s
liner notes asked: “What’s the date
again? . . . 1962? or twenty years on?”
They are still a name to conjure with a
half-century later, one of the key British
bands of the 1970s. Their O2 Arena
show ended a short run of reunion dates
marking their debut’s anniversary.
Ferry wore a handsomely tailored dark
suit, open-necked white shirt and the
genial air of a debonair host. “We’re
pretty old now,” he said with a smile,
before playing “If There Is Something”
from the 1972 album, a young man’s
bolstered Ferry’s vocals. He either sat at
an electric piano or stood at the micro-
phone stand, one hand holding it, the
other gracefully tracing arabesques in
the air.
The set ranged across the band’s
recording career, which ended in 1982
with Avalon, their most commercially
successful album. By then they had
smoothed themselves into a gleaming
new romantic lodestar, all feathery gui-
tar and luxuriant balladry. Tracks from
this sophisticated phase dominated the
middle section of the show, sung by
Ferry in a soft, calming fashion. His
voice no longer trembles and quivers as
it used to. Without its intriguing hint of
instability, songs such as “To Turn You
On” drifted through the arena in a hand-
somely sedate fashion. Elegant ennui —
but ennui nonetheless.
Older numbers came across better;
Manzanera and Mackay were more
prominent in them. The guitarist, with
an array of effects pedals at his feet,
added echoing shards of sound to the
needling beat of “The Bogus Man” as
Salvador Dalí’s surrealist dream
sequence from the Hitchcock film Spell-
bound showed on backing screens.
Mackay’s wailing sax added a powerful
undertow, a strange force looming
behind Ferry’s vocals. The pair united
magnificently again on “Ladytron”, with
Manzanera making masterful use of
guitar distortion while Mackay added
baroque decoration on oboe.
“There’s a new sensation,” Ferry cried
as the evening drew to a close with “Do
the Strand”, a squealing, honking, pell-
mell affair during which archive photos
of the band flashed on to the screen.
Then and now were blurred together, a
final act of time travel from pop’s great
retro-futurists, possibly making their
last live appearance. A frisson of past
glory ran through the venue. What’s the
date again?
roxymusic.co.uk
Roxy
Music’s
Bryan
Ferry on
stage at the
O2 Arena
Redferns

archly ardent ode to a young woman.

The 77-year-old singer did not try to
muster the mannered display of feeling
that he once brought to the role.
He was joined by guitarist Phil Man-
zanera, saxophonist Andy Mackay and
drummer Paul Thompson from Roxy
Music’s 1972 line-up. The original band’s
chief technologist, Brian Eno, was
absent. His madcap synthesiser parts
were played by one of six accompanying
musicians, including an extra drummer
and guitarist. Three backing singers
Tuesday 18 October 2022
West Virginia’s Senator Joe Manchin cast the deciding vote on President Joe Biden’s clean energy bill,
ensuring it would have benefits for his constituents. But mining has deep roots in the Mountain State.
O
n an exposed ridge deep in
Appalachia, 23 shining
new wind turbines loom
over a wooded valley — the
newest additions to the
energy mix in America’s traditional coal
heartlands.
The Black Rock wind farm, nestled in
the remote mountains of outer West
Virginia, is exactly the sort of project
President Joe Biden hopes will prolifer-
ate as a result of the unprecedented
clean energy cash injection he signed
into law in August.
The president wants to ignite a green
revolution that will transform the
American energy landscape, slash
carbon emissions and put the country at
the forefront of a global clean-tech race.
But more than that, Biden also promises
his $370bn clean energy push — under
the Inflation Reduction Act (IRA) — will
bring new jobs to depressed fossil fuel
communities where livelihoods depend
on the extractive industries.
Nowhere is the fallout from the
decline of old energy more pronounced
than in West Virginia — the country’s
most coal-dependent state — where the
demise of a once vibrant sector has
upended the local economy, with almost
one in five people now living in poverty.
But West Virginia remains coal coun-
try. And on the ground, the prevailing
sense is not that an energy transition is a
route out of Appalachian misery, but an
assault on an identity and way of life.
“Dude, we barely even got any damn
Tesla fuckin’ chargers in this state,” says
Jonas, a 22-year-old construction
worker, outside the Piggly Wiggly gro-
cery store in Charleston, the state capi-
tal. “It’s definitely — definitely — a coal
state through and through.”
“I don’t know that we’ll ever become a
green state,” says another shopper, a
retiree who declined to give his name.
“For West Virginians,” he says, “It’s: ‘My
great-granddaddy was a coal miner; my
granddaddy was a coal miner; my daddy
was a coal miner; I’m gonna be a coal
miner; my son will be a coal miner.’ It’s
this philosophy of ‘we can’t change’.”
Yet it is the buy-in of people in fossil
fuel-producing states such as West Vir-
ginia that Biden needs most if his green
revolution is to succeed.
This was the state that did more than
any other to shape Biden’s climate law. It
was Joe Manchin, the state’s obstruc-
tionist Democratic senator, who ulti-
mately signed off on Biden’s climate
plan — casting the deciding vote.
No individual embodies the tension
and complexities at the heart of the
energy transition as much as Manchin, a
Democrat who has been elected to the
US Senate three times in a Republican
stronghold state that twice voted
overwhelmingly for Donald Trump. No
senator holds a tougher seat.
That helps explain why Manchin is no
climate evangelist. As governor, he sued
the Environmental Protection Agency
for blocking mining permits in his state.
in December, he scuppered Biden’s
initial plans for a climate spending
spree, via the $1.75tn Build Back Better
bill, on inflation concerns.
To the surprise of many, though, he
ultimately came around, backing a
slimmed-down version of the package
in the guise of the IRA. In doing so, he
effectively greenlit a bill designed
explicitly to speed the expansion of
green energy — and displace coal.
The coal industry was furious. “West
Virginia will suffer,” says Chris Hamil-
ton, president of the West Virginia Coal
Association and a former mine fore-
man. “West Virginia’s coal industry
today has a limited timeline placed on it
because of this legislation.”
But if the bill can succeed here, in the
heart of coal country, in providing
lasting alternative employment to min-
ing, it has the potential to be trans-
formative in driving an energy transi-
tion across America.
To do that it needs to create new
opportunities that ensure buy-in at
every level, says Elizabeth Ruppert Bul-
mer, lead economist at the World Bank.
“It cannot be a case of: let’s pay every-
body off, and we’re done; we close the
mine and turn the key and walk away,”
she says. “We’ve got to transition to an
economically viable and inclusive
development model.”
Coal’s rise and fall
Appalachia’s coal mines are fundamen-
tally entwined with US history. They fed
the furnaces that industrialised Amer-
ica in the 19th century, forging the iron
and steel to build ships and trains. Later
they powered the war effort, allowing
the mass production of rifles and tanks
that won two world wars
“It’s coal country,” says Jerry Cole-
man, who spent 37 years down the
state’s coal mines, before contracting
black lung, a debilitating respiratory
illness. “You go back as far as you want
and West Virginia has produced coal.
Coal is West Virginia. You’ll never phase
it out.”
★ FINANCIAL TIMES
By Myles McCormick
Coal country’s green future
‘West For people in the Mountain State, the
industry is a source of both pride and
Virginia’s identity. Many tell stories of relatives
coal who flocked to its hills and valleys dur-
ing the boom years drawn by the prom-
industry ise of work. Its southern counties are
today has strewn with the remnants of “company
towns” built to house miners and their
a limited families in remote areas. Even the state
timeline flag features a pickaxe-wielding miner.
In the 1970s, as the Opec oil crisis rat-
placed on tled the US economy, President Jimmy
it because Carter made coal a centrepiece of his
of this energy strategy, promoting the fuel as a
solution to dependence on foreign sup-
legislation’ plies. Domestic reserves such as those in
West Virginia and Wyoming would help
America keep the lights on.
Today, the industry is in terminal
decline — both in West Virginia and
across the US. Shifts in technology and
efficiency have contributed to a steady
fall in employment since the middle of
the last century.
During the second world war, more
than half a million people were
employed in America’s coal mines.
Today that figure is about 60,000.
But it was only in the past decade that
production hit a wall, after peaking in
2008. The main culprit was the shale
revolution, which provided an abun-
dance of cheaper, cleaner natural gas,
replacing coal as a fuel in power plants;
plummeting costs for wind and solar
have only added to the malaise.
America produced more than 1bn
tonnes of coal a year at the turn of the
century, second in volume only to
China. Last year, it was roughly half of
that. In West Virginia — today the
nation’s second biggest coal producer,
after Wyoming — it has halved from its
1997 peak, sitting at a little more than
80mn tonnes last year.
“The reality is we never should have
let ourselves become so completely
addicted to just one industry,” says
Brandon Dennison, chief executive of
Coalfield Development, which retrains
former West Virginia miners to work in
start-ups. “But we did — and that one
industry went into a rapid decline.”
Unemployment shot up in coal com-
munities, contributing to and com-
Coal mining employment The share of coal in the
has collapsed in US energy mix has halved
West Virginia over the past decade
Jobs (’000) Primary energy consumption,
by fuel (%)
150
Renewables
Hydro
Nuclear
100
50
0 0
1900 50 2000 20 1970 80 90 2000 10
Sources: West Virginia Office of Miners’ Health Safety & Training; BP Statistical Review of World Energy; US Bureau of Labor Statistics
FT BIG READ. US
pounding an opioid-addiction epidemic
that ripped through the state. Today,
West Virginia has the lowest labour
force participation in the country at
about 55 per cent, 6 points below the
national average. “The bottom fell
out,” says Dennison. “It just felt like
economic freefall.”
Thriving in new ways
In 2016, the coal industry welcomed a
potential saviour: Donald Trump, who
vowed on the campaign trail that min-
ers would be “working [their] asses off”
if he won the presidency.
In West Virginia, two out of every
three voters backed Trump’s successful
White House bid, higher than any other
state. Yet despite his pledge, American
coal jobs continued to slide — falling
from 51,000 to 38,000 during his term.
Trump may be gone, but the industry
and local politicians are still raging
against coal’s decline — and doubling
down on its use.
When the state’s two big utilities
sought to shutter uneconomic plants,
the Public Service Commission of West
Virginia ordered them to keep them
open and shifted the facilities to a
regulated rate base, leaving consumers
to prop them up.
Even gas-fired power plants have
struggled to gain traction in the state.
Last year, the commission ordered the
state’s utilities to run their coal plants at
historical levels — even in cases where it
was cheaper to buy in power generated
elsewhere from gas or renewables.
Coal’s dominant position on the state
grid, producing 90 per cent of its elec-
tricity, leaves little space for renewable
developers. Governor Jim Justice, a coal
magnate who has the word “Coal” on his
personalised licence plate, has said it
would be “frivolous” to think that
“windmills are just going to take over
and be our salvation”.
Yet the incentives in the IRA could be
“potentially huge for West Virginia”,
says James Van Nostrand, director of
the Center for Energy and Sustainable
Development at West Virginia Univer-
sity. “But we don’t have the policies at
the state level that say: ‘Bring it on, we’re
Coal pays better than
renewables
Median wage, energy jobs
($ per hour)
0 20 40 60
Gas Coal mining
Oil (explosives)
Coal mining
Coal
100
(extraction)
Coal mining
(machinery operation)
Nuclear (technician)
50 Oil and gas
(extraction)
Wind (technician)
Solar (photovoltaic
20 installer)
open for business and the clean energy
economy’ . . . that sign was not lit in
West Virginia.”
In deciding to back the package,
Manchin was sending a critical message
to his state: that coal is not coming back
— and West Virginia needs to move on.
“Inaction will not reverse the trends
that we have seen in the coal industry,”
he wrote in a letter to coal bosses.
At the heart of the IRA is a system of
tax credits designed to spark a mass
buildout of wind, solar and energy
storage projects across the country.
Manchin ensured the tax credits would
steer investment towards states such as
West Virginia, boosting the payout if
clean energy developers site projects in
fossil fuel communities.
“This is a really important way to
make sure workers are not left behind,”
says Leah Stokes, a political-science
professor at UC Santa Barbara. “I can
understand why folks might be sceptical
but give it a minute and folks will be
surprised.”
Yet traditional renewables were not
Manchin’s priority. The deal ultimately
carved out by the senator pumps funds
into carbon capture, an old technology
yet to achieve scale that proponents
hope could prolong the lives of fossil fuel
gas and coal-burning power plants.
The bill also supports the develop-
ment of hydrogen, a new fuel source
that could be produced using natural
gas and coal; and it seeks to drive a
boom in green manufacturing, support-
ing domestic plants that build electric
vehicles and their parts.
To Hamilton, representing the coal
industry, the legislation backed by
Manchin does little more than bankroll
coal’s rivals. “When you bring in a new
source of power, the chances are that it
will result in some lower amount of
coal-based generation,” he says. “We’re
asking, here in West Virginia, for coal
miners to expend some of their tax
dollars to support competitive fuels
aimed at putting them out of business.”
Clean energy plans
Despite the opposition, renewable
developers are making big plans for
West Virginia. Clearway, the company
behind the five-month-old Black Rock
17
wind farm and the biggest clean energy
player in the state, intends to increase
its operations there by a factor of five —
with two gigawatts of projects in the
works, which are roughly equivalent to
two nuclear reactors.
“The state has sat at a crossroads for
America’s energy needs for a century,”
says Craig Cornelius, chief executive of
Clearway. “I think of renewables as the
next category of energy that West Vir-
ginia will produce for itself and export to
its neighbours.”
Politicians such as John Kerry, Biden’s
top climate diplomat, have insisted coal
miners will find jobs in the new green
economy — erecting wind turbines, for
Joe Manchin, the example, or installing solar panels.
West Virginia The problem is that unlike coal,
Democratic renewables are not a big employer — at
senator, main, least after construction is finished. The
embodies the Black Rock wind farm created 200 jobs
tension and during the construction process, but
complexities today it takes less than a dozen techni-
at the heart of cians to keep the facility ticking over.
the energy Coal pays better, too. The median
transition. wage for a miner is $30 an hour — rising
Above: the to about $37 if you handle explosives,
abandoned coal according to the US Bureau of Labor Sta-
mining town of tistics. That compares to $27 for a wind
Kaymoor turbine service technician and $23 for a
FT montage: Getty Images/
Bloomberg; Andrew
solar panel installer.
Lichtenstein/Corbis via Getty Manufacturing, however, is more job-
Images friendly — and has been welcomed by
the state. At least eight big green manu-
facturing announcements were made in
West Virginia this year.
Among the companies the state has
drawn in is GreenPower, an EV start-up
setting up the state’s first electric vehicle
manufacturing plant in South Charles-
ton. Beginning production this autumn,
by next year it will churn out up to 50
electric school buses a month.
Sitting in a bright yellow prototype
bus, chief executive Fraser Atkinson
says the state has bent over backwards
to accommodate his company — pur-
chasing a work-ready site for it and sub-
sidising each local hire made. The IRA,
he says, will “kick-start and probably
turbocharge” commercial electrifica-
tion — including in West Virginia.
Sparkz, a California battery start up,
plans to build a manufacturing plant in
Taylor County, in the north of the state.
The factory will hire and retrain former
coal miners, under a deal with the
United Mine Workers Association
‘It cannot be hatched at a White House dinner.
a case of: Cecil Roberts, head of the UMWA,
let’s pay said the IRA’s incentives to “build plants
in the coalfields” would be “a big step
everybody toward providing good jobs to these dis-
off, and tressed communities” as he threw his
weight behind Manchin this summer.
we’re done. “I think it’s starting to set in that
We’ve got to [coal] is not going to totally vanish over-
night, but it’s also never going to be the
transition to giant that it was,” says Dennison, Coal-
a viable and field Development chief.
“And if we want to survive, we’re going
inclusive to have to accept that and start to figure
model’ out some different things.”
18 ★ FINANCIAL TIMES Tuesday 18 October 2022

The FT View
Good riddance to ‘Trussonomics’
Hunt has buried the PM’s
economic policies and
reassured the markets
“Trussonomics” has been reduced to
rubble. Since outlining radical plans for
a low-tax and high-growth economy in a
reckless “mini” Budget on September
23, Britain’s prime minister Liz Truss
has only delivered financial market
chaos and U-turns. On Monday, new
chancellor Jeremy Hunt took an axe to
her agenda in a bid to calm gilt markets
by reversing the bulk of what was left of
her package. Only about one-third of
Truss and former chancellor Kwasi
Kwarteng’s planned tax cuts now
remain. Even their flagship energy sup-
port package is to be pared back. Truss’s
economic project is dead. Now that her
policy platform has been extinguished,
it is a matter of time before she too goes.
That Hunt had to pull forward the key
ft.com/opinion details of his medium-term fiscal plan
from October 31, shows just how far and
how fast the UK’s economic credibility
has sunk under Truss. Financial mar-
kets needed tangible proof that the
country’s fiscal arithmetic added up.
Hunt has sent investors a crucial mes-
sage that the government is recommit-
ting to fiscal responsibility, which
should help bring some financial mar-
ket stability as investors await the Office
for Budget Responsibility’s final verdict.
Overturning Truss’s remaining tax
measures on top of Friday’s volte-face
on corporation tax, cuts how much Brit-
ain will need to borrow. Plans to review
the structure of the energy price guaran-
tee for households and businesses are
also sensible: the original scheme was
expensive and poorly targeted.
Markets have effectively been dictat-
ing the direction of fiscal policy since the
“mini” Budget. Truss and Kwarteng’s
borrowing plans led to a surge in gilt
yields and a rise in expectations of how
high the Bank of England would need to
raise rates to quash inflationary pres-
sures. This added to the government’s
debt pile, on top of the £45bn of
unfunded tax cuts, and ripped open a
fiscal hole estimated by the OBR to be
about £70bn. A drip-feed of U-turns
and emergency support from the BoE
have tried to keep a lid on yields, but
markets have demanded more evidence
of fiscal sustainability.
Gilts and pound sterling extended
their rally after Hunt’s statement; and
the tighter fiscal stance should help ease
pressure on how high the BoE needs to
raise rates. The government will, how-
ever, need to go further to prove to the
OBR that Britain’s finances are undenia-
bly on a sustainable path. Even with all
the U-turns so far and easing in borrow-
ing costs, the Treasury could still face a
fiscal gap of about £30-40bn. Bond
yields, and energy prices, will also
remain volatile. The Conservative party
still has difficult decisions to make on
tax rises and unpopular spending cuts.
While Hunt is trying to pick up the
pieces of Britain’s tarnished economic
A drip-feed of image, Truss’s political credibility lies in
U-turns and tatters. Markets will continue to deter-
mine how much further the govern-
emergency
ment needs to tighten its fiscal plans,
support from and with the chancellor’s pledge to do
the BoE have “what is necessary for economic stabil-
tried to keep a ity”, she will have no remit. As long as
lid on yields, but she remains in the cabinet, the govern-
markets ment’s seriousness will be questioned.
Some MPs will argue that with the
demanded chancellor running economic policy
more evidence Truss can remain as a figurehead. But
of fiscal the pressures on her to resign are esca-
sustainability lating. The question of who is the next
leader of the country, however, should
be settled not by the Conservative party,
for a third time since 2019, but by voters
at a general election.
After promising “growth, growth,
growth”, it is ironic that the most impor-
tant economic measures put in place
during Truss’s turbulent premiership so
far may just be the ones announced
today by the chancellor to reverse the
majority of her policy agenda and put
the UK back on a path toward stability.

Opinion Society
Letters
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com

The drug wars don’t work,

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

they just make it worse Farming can be more sustainable without cutting yield or profit
Ewan White I enjoyed your article “Rethinking
farming in an era of global crises”
(Big Read, October 10) and the
discussion of the benefits of
regenerative agriculture. But moving
from high-yield conventional
agriculture to regenerative techniques
requires a two to five year transition
period and a fall in crop yields of
approximately 29 per cent, according
to research by Claire LaCanne at the
University of Minnesota Twin Cities
and Jonathan Lundgren, director of
Ecdysis Foundation, a non-profit
organisation with a mission to save the
planet by reforming our food system.
Regenerative crops may be more
profitable when sold at a premium to
high-end consumers, but they don’t
represent an economic option for all
food production yet. For farmers
operating on thin margins the
transition period and lower yields are
difficult to manage without subsidies
or government assistance.
Conventional high-yield agriculture
also has options to evolve further. As
an example, today “selective”
herbicides are blanket sprayed across
fields two to five times a growing
season, depending on the crop type, to
kill weeds without impacting the crop.
But by applying new techniques it is
possible to reduce herbicide use by
80-95 per cent, while increasing
conventional crop yields by more than
5 per cent, increasing biodiversity and
saving around 200kg of CO₂ per
hectare — all because crops and soil not
sprayed with herbicide perform better.
Here at Ecorobotix we use machine
learning for plant recognition paired
with ultra-high precision spraying to
only treat weeds and not spray
surrounding crops and soil.
This type of ultra-high precision
technique also applies to insecticide,
pesticide, organic products and liquid
fertiliser use (saving around 20 per
cent in most cases) with the potential
to render conventional agriculture
massively more sustainable without
any yield loss or profitability decline.
Simon Aspinall
Chief Executive, Ecorobotix
Geneva Switzerland

war on drugs. What it really repre-
Stephen sents is a shift in priorities from fight-
ing the war on drugs in the “criminal”
Bush sphere and towards the public health
sphere. The aims of the US govern-
ment in moving towards a world in
which you can take cannabis, but the
NHS ‘sacred cow’ status Beijing’s digital ambitions states, to be threatened, bribed or
coerced.
prevents balanced debate should worry Malaysians China has a grip on the region’s
It is not surprising, given his role as
chief executive of the NHS
Malaysia remains high on China’s radar
in the realm of digital economy, where
economic prospects. In Malaysia’s case,
it should be wary of China cosying up
Confederation, that Matthew Taylor
should argue for more investment in
the Belt and Road Initiative is geared
to prodding Chinese tech heavyweights
to its tech sector, given its reliance on
Chinese capital and expertise.
“health”, by which he clearly means to invest in Malaysian companies, Squeezed now by Washington’s move
the National Health Service (“NHS can eyeing Malaysia’s fast-growing $21bn to isolate its critical industry capacity

I
f I were to use this space to dis-
creetly hint that I, from time to
time, might smoke the odd joint, I
would seem edgy, cool, a little bit
daring. But if I were to state that
on Fridays I like to take contacts out
for lunch and enjoy a glass or perhaps
even a bottle of wine, I would appear
lazy, dissolute and, crucially, old
fashioned. And if I were to admit that I
might, in the past, have shared a
cigarette when I wanted to impress
someone, I would reveal myself as
pathetic, a little seedy even.
Of course, any of these behaviours is
harmful to me personally, which is one
reason why global governments’ “war
on drugs” is a battle on two fronts.
There is the global fight against legal
but harmful drug usage: the Institute
of Alcohol Studies estimates that in
the UK, alcohol usage costs the coun-
try £7.3bn a year in lost productivity,
medical consensus is that you proba-
bly shouldn’t, is not actually that
different from the world imagined by
Suella Braverman, the UK home sec-
retary, who has signalled that she
would like to increase the legal penal-
ties faced by British pot smokers. Not
least because given the UK’s growing
inability to enforce most laws, it’s not
clear what the actual effect of tighten-
ing the penalties faced by cannabis
smokers would be.
We should be clear that the healthi-
est way to live, in most cases, is to
refrain from drug taking. That
includes my habit of having a glass of
wine when I take a contact for a nice
lunch as much as it includes your ten-
dency to smoke a joint on the week-
end. That my lunchtime tipple is per-
fectly legal in the UK and your habit is
prohibited is neither here nor there in
terms of direct harm to ourselves.
The question facing states is: what’s
the most effective way to get people to
help cure the UK’s economic malaise”,
Opinion, October 17).
I have no doubt as a retired doctor
and NHS manager that NHS staff are
working under intolerable pressure
right now, much worse than in my
time. Nevertheless, the NHS is still
largely a much-needed treatment
service. More money for the NHS, with
its inevitable focus on the growing
needs and expectations of older people,
means less public money for social
welfare, social care and, most
importantly, investment in the
life chances and skills of younger
people, particularly those who are
disadvantaged socially and
economically.
For too long the NHS has been a
“sacred cow” to be dragged out by
interested parties (providers and
political aspirants), particularly at
election time, distorting any debate
about a proper balance in the
distribution of scarce public resources
between the pressing needs of the day
and a more prosperous and healthy
future for all.
Dr Ian Greatorex
Salford, UK
digital economy (“China’s chip sector
braced for US exports blow”, Report,
October 10).
The Malaysian government’s digital
economic blueprint calls for developing
a digital economy from 2021 to 2030
and turning the country into a “pioneer
in digital content and cyber security in
the regional market”, which provides a
great opening for Beijing to exploit.
Jeremy Fleming, director of the
GCHQ spy agency of Britain, stated last
week that China was using its financial
and scientific muscle to manipulate
technologies in a manner that risks
global security. He warned that
Beijing’s actions could represent a huge
threat to all (“Russians running out of
arms on battlefield, says UK spy chief”,
Report, October 12).
Beijing sees nations either as
potential adversaries or potential client
in chips and semiconductors, Beijing is
reorienting its regional focus,
expanding its strategic net to include
Malaysia on its survival radar.
Collins Chong Yew Keat
University of Malaya, Kuala Lumpur
Malaysia
Truss plight recalls Rome’s
‘year of the four emperors’
The predicament of Prime Minister Liz
Truss and the Conservative party
reminds me of what Tacitus said about
the Emperor Galba, who ruled briefly
after the death of Nero in 68CE (69CE
being the “year of the four emperors”):
“Everyone agreed he was capable of
ruling until he ruled” (omnium consensu
capax imperii nisi imperasset).
Antony Black
Dundee, UK

Social taboos and public
health concerns have been
better at deterring users
than law enforcement
W
consume fewer drugs and to decrease
the amount of cash flowing towards
the underground economy?
OUTLOOK omen over 50 often
complain that western
calculates that women have cast 10mn
more votes than men in recent
political culture is so distasteful that
they tune it out”.
The answer is clear: although most society treats them as elections, and AARP says women over I expected abortion to be a key issue
AMERICA
drug usage across the board has fallen,
in both percentage and absolute
invisible — not to
mention irrelevant.
50 punch particularly above their
weight. Using census and state voter
for many voters, after the US Supreme
Court’s recent decision to overturn
terms, states have been much better at But according to new polling from file data, AARP calculates that women Roe vs Wade. But it ranked only third

while hangovers cost somewhere
between £1.2bn and £1.4bn a year. In
the United States, the CDC calculates
that tobacco usage costs more than
$240bn in increased healthcare
spending, close to $185bn in lost pro-
ductivity from smoking-related ill-
using social taboos and concerns
about public health to reduce the use
of legal drugs than they have at using
law enforcement to do the same to
illegal drugs.
That should matter a great deal,
because while the costs of using legal
drugs fall largely on the person doing
Older women
AARP, the leading US organisation for
people 50 and over, older women
could hold the balance of power in
voters hold the next month’s hugely consequential
midterm elections.
An AARP survey of likely women
power in the voters aged 50 and over, published
earlier this month, found that just
over 50 cast nearly a third of ballots in
both 2020 and 2018, while
constituting little more than a quarter
of registered voters. In 2020, 83 per
cent of registered women voters in
this age group cast a ballot.
“We are a very big group, there are
63mn of us, and older women have
for Democratic women over 50. For
Republican women of that age group,
inflation and crime topped the list.
Judging from the transcripts of
focus groups provided by AARP,
economic insecurity was clearly a
crucial issue for almost all of the
women surveyed. Half said that the

ness, and almost the same amount
thanks to premature death.
Then there is the fight that we more
commonly associate with the phrase
“war on drugs”: the battle to reduce
the use of drugs that are both illegal
and harmful. The British government
puts the cost of illegal drugs to the UK
economy at about £20bn a year, while
the US Office of National Drug Control
Policy’s most recent estimate put the
cost of illegal drug usage at $120bn. In
2017, the Trump White House put the
cost of opioid addiction, which cannot
be neatly split into “illegal” and “legal”
boxes, at $504bn in 2015.
In addition to those direct economic
and social harms from drug usage, the
use of illegal drugs has harmful conse-
quences across the world, both inter-
nationally and within nations by
increasing the money available to
organised criminals, large and small.
So it’s a misreading of sorts to see
Joe Biden’s decision to expunge the
offences of the around 6,500 Ameri-
cans who have a federal conviction for
cannabis possession as an “end” to the
US midterms
so, the costs of illegal drug usage are over half weren’t sure yet who to vote been especially important for the last economy is not working for them, and
heavily subsidised. My habit of drink- for — though a whopping 94 per cent few elections,” LeaMond says. She 41 per cent said they had cut back on
ing at lunch can be taxed, regulated planned to cast a ballot. Older women adds: “In some of the key swing states essential purchases. One 64-year-old
and doesn’t increase the chances of normally decide by springtime how to like Arizona, Florida, Wisconsin and woman from Ohio said she had to
my neighbours falling victim to organ- vote, says Nancy LeaMond, AARP Michigan, women over 50 are 25 to 28 refuse a Zoom call with her 18-month-
ised crime or lead to violent deaths in executive vice-president and chief per cent of the population but 31 to 35 old grandchild. “I have to work
other countries further down the sup- advocacy and engagement officer. She per cent of voters . . . they are almost whenever the hours are there for me,
ply chain. A weekly toke does. says it is “startling” to find such a equally divided between Democrats everything is just skyrocketing to the
Drug reform advocates, however, all large proportion undecided so close to and Republicans . . . and many of these point where I can’t be the grandma
too often act as if drug legalisation is a the poll. races are so close that people have to that I want to be because I can’t miss
painless remedy. In the short term, I know how they feel: my own pay attention to a group that says they $20 of work money to Zoom with her.”
drug usage would be likely to increase: absentee ballot sits waiting on my are definitely going to the polls.” Latina voters over 50 are even more
and that increase would have real kitchen counter. I haven’t filled it out Why is this group so uncertain? undecided than white voters.
social costs. The important difference yet, because I haven’t yet been able to Christine Matthews, president of “Hispanic women have become
though is that those costs would be rise sufficiently above my general Bellwether Research and Consulting, significantly more negative about the
borne heavily by drug users them- disdain for all politicians to choose one of the pollsters who partnered economy and how it’s working for
selves, not spread across communities any one of them over another. The with AARP on the survey, says “there them,” Matthews said.
and nations. vacillation of people like me could are quite a few cross pressures on “As the largest bloc of swing voters
That reality is one reason why social make a big difference to the upcoming these voters: they are weighing all heading into the midterms, women
opprobrium ought to attach to midterms, which could shift the sorts of different things from concern voters 50 plus can make the difference
confessing to taking illegal drugs. But distribution of power in the US about inflation to threats to social in 2022,” says LeaMond. But nobody
it is also a better reason why more Congress, and transform state security, as well as threats to knows which way they will jump —
governments should stop trying to legislatures across the country, says democracy and concern about crime not least those who are still on the
reduce drug usage through legal LeaMond. Early voting in some states and immigration”. Jackie Salit, fence even as polling begins.
prohibition and do it through public has already begun. president of Independent Voting, says
health campaigns instead. The Center for American Women she thinks older women may be The writer is a contributing columnist,
by Patti Waldmeir and Politics at Rutgers University undecided partly because “the based in Chicago
stephen.bush@ft.com
Tuesday 18 October 2022
Hunt still has a fiscal hole to fill, but the UK’s fabric is fraying
BRITAIN
Sarah
O’Connor
W
hen UK prime minister
Liz Truss was inter-
viewed on local radio
last month, she was
asked about a hospital
which is so dilapidated its roof is being
held up with thousands of wooden and
steel props. Truss, whose own constitu-
ency is near the hospital in Norfolk, said
she couldn’t make any promises but
would lobby on the issue “as the local
MP”.
The exchange summed up the junc-
ture at which Britain finds itself. The
fabric of the country is fraying, but the
government is seemingly helpless to do
anything about it. Indeed, it might be
about to make the situation worse. Jer-
emy Hunt, the new chancellor, scrapped
most of Truss’s unfunded tax cuts yes-
Diplomacy
should not be
a dirty word
global affairs
Gideon
Rachman
J
oe Biden is one of the few world
leaders who will vividly
remember the Cuban missile
crisis. He was a student, almost
20 years old, when the US and
the Soviet Union came to the brink of
nuclear war. Now, as US president,
Biden has half-mused, half-warned that
the world is currently closer to nuclear
Armageddon than at any time since the
crisis that unfolded in October 1962 —
exactly 60 years ago.
There has been some tut-tutting that
Biden should not be saying such things.
The argument is that by publicly dis-
cussing nuclear war, the US president is
playing into Vladimir Putin’s hands.
Russia’s president and his army are in an
increasingly desperate situation. West-
ern intelligence services believe that the
Russians are running out of ammuni-
tion and that this has only recently
become apparent to Putin. By threaten-
ing to use nuclear weapons, Putin is
using one of his remaining tools — trying
to terrify Ukraine and its western back-
ers into concessions.
Biden, however, is not alone in talking
publicly about the nuclear threat. Volo-
dymyr Zelenskyy has also said that
Putin is psychologically preparing the
Skills gaps will force companies to do right by their compatriots
AMERICA
Oren
Cass
B
usiness leaders who complain
constantly of “talent short-
ages” or “skills gaps” may, in
fact, have only themselves to
blame. The perceived weak-
nesses among their staff may be the
result of overambitious or flawed plans.
Anyone can see the folly in trying to hire
thousands of experienced biochemists
at minimum wage to develop cutting-
edge drugs. The problem is not a bio-
chemist shortage; the problem is the
bad idea. Equally foolish is the software
executive who expects an unlimited
supply of eager coders, or the plant
manager who believes well-trained
technicians will line up at his door.
Why do employers believe they
should have access to whatever labour
they need at whatever wages they
terday in an effort to reassure markets
the UK was a fiscally sensible country.
But that still leaves a hole to fill. He said
spending in some areas would have to
be cut.
The problem is: cut what? The idea of
cutting welfare payments in the middle
of a cost of living crisis has already been
chewed over and spat out by many Con-
servative MPs. Uprating working-age
benefits by earnings rather than infla-
tion next year would save the Treasury
about £5bn but it wouldn’t meet Hunt’s
promise to “prioritise the most vulnera-
ble” at a time when people are already
asking food banks for items they don’t
need to cook because they have
switched their gas off.
Public services are not an easy target
for cuts either. Yesterday, the Institute
for Government published its annual
assessment of the state of nine public
services: general practice, hospitals,
adult social care, children’s social care,
neighbourhood services, schools,
police, criminal courts and prisons.
After a decade of austerity, the report
found that many public services went
into the pandemic with longer waiting
Russian people for the use of nuclear
weapons. As Ukraine’s leader put it, this
is “very dangerous”.
With the dangers of escalation
mounting — alongside the death toll —
the absence of serious diplomatic efforts
to end the conflict is both striking and
worrying.
For some of Ukraine’s most ardent
backers, even talking about diplomacy
amounts to appeasement. Their argu-
ment is that the only acceptable and
realistic way to end the war is for Putin
to be defeated. This is fine as a state-
ment of principle, but not hugely help-
ful in practice.
Of course, it would be best if Russia
were comprehensively defeated and a
new penitent government came to
power in Moscow — committed to pay-
ing war reparations and putting Putin
on trial for war crimes. But that out-
come, while just about within the range
of possibilities, remains a very long-
odds bet. For the foreseeable future it is
much more likely that, as his options
shrink, the Russian leader and his
entourage will escalate further.
Russia’s options include economic
pressure, indiscriminate bombing of
Ukraine and sabotage of western infra-
structure. But increasingly overt
nuclear threats are also likely. The
actual use of tactical nuclear weapons
cannot be excluded. The frequency with
which western leaders make reference
to this and talk about possible responses
— the latest to do so was France’s
Emmanuel Macron — is a sign of the
briefings they are getting in private.
choose? Perhaps the culprit is globalisa-
tion? Capitalism generated widespread
prosperity for centuries by rewarding
the most productive uses of available
labour. “Every individual naturally
inclines to employ his capital in the
manner in which it is likely to afford the
greatest support to domestic industry,
and to give revenue and employment to
the greatest number of people of his own
country,” posited Adam Smith in The
Wealth of Nations. The invisible hand
aligned private profit with the public
interest not by magic, but because
pursuing the former was best achieved
through investments that also advanced
the latter.
Global flows of goods, people and cap-
ital released that constraint. Western
corporations found themselves with a
seemingly inexhaustible supply of for-
eign workers, willing to work longer
hours for lower wages with fewer pro-
tections. The enterprise no longer had
to care about local workers. Entire
nations competed to deliver the needed
labour. The results were splendid for
corporate profits; less so for workers,
their families and their communities.
★ FINANCIAL TIMES
Opinion
times, reduced access, missed targets
and other signs of diminishing stand-
ards.
Since then, demand has grown and
backlogs have ballooned. NHS waiting
lists for elective treatments reached
over 7mn people by August this year, the
highest on record. In the crown court,
the backlog was 59,700 cases in June,
slightly below the peak in 2021 but
After a decade of austerity
and then the pandemic,
there is no meaningful fat
to cut from public services
higher than any point since at least
2000. “There is no meaningful ‘fat’ to
trim from public service budgets,” the
authors concluded.
Holding down public sector pay is also
difficult at a time of high inflation. With
a tight labour market, public services
from education to health and prisons
are already struggling to recruit and
retain people on current pay levels. The
In 1962, nuclear brinkmanship took
place against the backdrop of secret
diplomacy that eventually defused the
Cuban missile crisis. That kind of diplo-
matic activity is the missing ingredient
in the war in Ukraine.
The big mistake is to believe that
diplomacy is an alternative to strong
military support for Ukraine. On the
contrary, the two approaches should go
hand in hand and be complementary
to each other. Giving the Ukrainians
the military help they need to advance
on the battlefield puts them in the
best possible position to secure their
aims in an eventual peace settlement.
But diplomacy should not simply be
deferred to some point in the future. It
needs to be going on at the same time as
the fighting. And the Ukrainians have to
The absence of serious
diplomatic efforts to
end the Ukraine conflict is
both striking and worrying
Economists and policymakers have
begun learning from these mistakes and
at least contemplating the re-establish-
ment of immigration limits and trade
barriers that would force capitalists
back into partnership with their coun-
trymen. Thus the growing, somewhat
comical cries from the business lobby
that one cannot possibly be expected to
run a successful operation with these
workers. The champions of free mar-
Global flows of goods,
people and capital were
splendid for corporate
profits; less so for workers
kets, creative destruction and competi-
tion proudly tout the power of such
forces to solve any problem if incentives
are right. But give them the challenge of
turning a profit with the local labour
force and suddenly all is lost.
New research published on Thursday
by the Burning Glass Institute, Harvard
Business School, and the Schultz Family
most recent official pay data showed
private sector wage growth was 6.2 per
cent while public sector wage growth
was just 2.2 per cent.
Nor is there public appetite for more
austerity. In 2010, only 31 per cent of the
British public were in favour of higher
taxes to spend more on health, educa-
tion and social benefits. In 2021, that fig-
ure was 52 per cent. In light of this, the
government will be tempted to cut pub-
lic investment instead of day-to-day
spending, which is less visible — at least
until your local hospital roof is propped
up with stilts.
But lower investment makes public
services less efficient and therefore
more expensive in the long run. Take
health, for example, where the hospital
in Norfolk isn’t a one-off. Parts of the
NHS estate “do not meet the demands of
a modern health service,” a report by
the National Audit Office found in 2020.
Indeed, 14 per cent of it predates the for-
mation of the NHS in 1948. The NAO
said “high-risk” backlog maintenance
had grown by 139 per cent between
2014/15 and 2018/19. “High risk” is
defined as “where repairs/replacement
be involved and consulted at every step.
Some western military leaders are
frustrated that their efforts in Ukraine
are not being supported by simultane-
ous diplomacy. As one senior military
source puts it: “Military action is inef-
fective on its own. It’s only truly effec-
tive when it’s combined with economic
and diplomatic efforts. And we’re not
seeing enough diplomacy.”
Although some might assume there is
more secret diplomacy going on than
meets the eye, those who should know
suggest there are few channels open
with the Kremlin. Senior members of
Biden’s team are believed to have spo-
ken to their counterparts in Moscow.
But the results have been less than
inspiring, with the Russian side sticking
to Kremlin-approved talking points.
Third-party diplomacy might be a
more fruitful path. The model here
could be the deal that was reached to
allow Ukrainian grain to leave Black Sea
ports, alleviating the global food crisis.
Turkey played a crucial role in broker-
ing those talks. Recep Tayyip Erdoğan,
the Turkish president, is not every-
Foundation gives the lie to this claim,
showing how much better employers
can do. The American Opportunity
Index uses data from millions of online
job ads and CVs to analyse the career
paths of US workers, typically without
college degrees, through the nation’s
250 largest publicly traded companies.
The index focuses on three dimen-
sions of opportunity that employers
provide: access (hiring of entry-level
workers and those without college
degrees), pay (median wage offered in
each occupation) and mobility (how far
and fast workers are promoted, how
long they stay and how successful they
are moving on to other companies).
This quantification of employment
outcomes has revolutionary potential
for workers choosing where to apply,
managers improving their performance
and third parties evaluating social
impact. For instance, fads such as “cor-
porate social responsibility” and “ESG”
have tended to encourage empty signal-
ling toward progressive causes, bearing
little relationship to core business oper-
ations. A focus on quantitative meas-
ures of opportunity provided to entry-
must be addressed with urgent priority
in order to prevent catastrophic failure,
major disruption to clinical services or
deficiencies in safety liable to cause seri-
ous injury and/or prosecution”.
Capital spending on healthcare is
much lower in the UK than similar
OECD countries, according to the
Health Foundation. It’s not just about
buildings, it’s also about modern equip-
ment and technology. Among the EU15
and G7 countries, the UK has the lowest
number of CT and MRI scanners per
capita. And under-investment prob-
lems go beyond health. As the Institute
for Government concludes: “in many
cases, there are too few staff, with exces-
sive workloads, working on outdated
equipment in rundown buildings.”
When in office, Conservative chancel-
lor George Osborne liked to describe his
austerity programme as “fixing the roof
while the sun is shining”. Now the gov-
ernment has boxed itself into a very
tight spot. The sun isn’t shining, but as
the people of Norfolk know, we still
need to fix the roof.
sarah.oconnor@ft.com
body’s idea of a stable intermediary. But
he has longstanding links in Washing-
ton, Brussels and Moscow.
The Indians are also potential inter-
locutors. Their failure to support resolu-
tions condemning Russia at the UN has
attracted plenty of unfavourable com-
mentary in the west. But it may make
them credible messengers in Moscow. S
Jaishankar, the Indian foreign minister,
is also a respected operator.
In the west, some who are thinking
about an eventual peace deal lay out
broad parameters. Russia must with-
draw to at least where its forces were
before the February 24 invasion.
Ukraine must have its future as a viable
state assured — with access to the sea,
control of its own airspace and reliable
security guarantees that are not
dependent on Russian good faith. The
status of Crimea will be the most diffi-
cult issue in any negotiation. But finding
creative solutions to intractable prob-
lems is what high-level diplomacy is all
about. We need to see more of it.
gideon.rachman@ft.com
level workers would be more useful.
The most important result is the
extraordinary variation between
employers, regardless of industry.
Those in the top quintile for providing
access are hiring four times as many
candidates without prior experience as
those in the bottom quintile. Those in
the top quintile for mobility are two-
and-a-half times more likely to fill open-
ings by promoting from within and
twice as likely to have senior manage-
ment following that route. In short,
most companies could be casting a
wider net in hiring, offering better pay,
or investing more effectively in workers’
success and progression.
The researchers pose gentle questions
such as, “Would drawing from a wider
pool allow you to access more talent?”
and, “Have you considered how to bet-
ter assess the talent and skills of the
workers you have?”
Business leaders need to start answer-
ing those questions. Policymakers must
ensure they have no other choice.
The writer is executive director of American
Compass
19
It is not the
BoE’s job to help
ailing energy
companies
Willem
Buiter
T
he focus in recent weeks on
the Bank of England’s emer-
gency gilt-buying pro-
gramme has distracted
attention from a significant,
and dangerous, initiative that it
announced last month: the Energy Mar-
kets Financing Scheme (EMFS).
Under the terms of the scheme, which
opened for applications yesterday, the
BoE will work with the Treasury to
“address the extraordinary liquidity
requirements faced by energy firms
operating in UK wholesale gas and/or
electricity markets” and offer “short-
term financial support to wholesale
firms”.
There is so much wrong with this
unfortunate initiative, which threatens
the BoE’s operational independence,
and the government policies leading
to it.
In a free market, energy suppliers
would pass on rising costs to house-
holds, companies, and other final con-
sumers of energy. The appropriate
response would have been to allow this
and address its impact on the poorest
through a lump-sum transfer to the low-
est-income households. Instead, the
government has instituted a costly
array of transfers to households, both
poor and wealthy.
The energy sector has liquidity prob-
lems because it has solvency problems.
Many energy suppliers who competed
aggressively over prices ensured that
the industry was not very profitable
even before the recent energy-price
shock. Ofgem’s price caps further
undermined the energy firms’ viability,
This unfortunate
initiative threatens the
Bank of England’s
operational independence
and in the winter of 2021-22, 21 suppli-
ers failed.
The BoE is not supposed to make
loans to insolvent firms. If a firm’s collat-
eral is impaired, there must be recourse
to a solvent counterparty. If a regulated
financial firm has liquidity problems,
then regulation and supervision by the
BoE provide the bank with the informa-
tion necessary to judge whether that
firm is solvent. Without this regulation
and supervision, this essential informa-
tion is missing.
So the bank should not lend to unreg-
ulated financial companies and nor, it
follows, should it lend to non-financial
companies that it does not regulate. The
BoE should also not act as a market
maker of last resort, buying energy
company debt if the private sector
ceases purchasing it. The market for
such debt is not systemically important,
and there is a material risk of default.
The BoE is also unlikely to be able to
induce a return of private market mak-
ers and normal purchasers of energy
companies’ debt by acting as lender of
last resort to the banks that funded the
buy side of that market when the energy
sector was deemed financially viable.
The absence of willing creditors for the
energy sector is not a liquidity problem
caused by a self-validating run on the
banks or on the market, but rather the
reflection of legitimate concerns about
the financial viability of the sector.
The Treasury could legitimately pro-
vide financial support if the energy
firms are deemed systemically impor-
tant. Ensuring this is not a joint scheme
could limit the damage to the BoE.
Instead, the bank would solely be an
agent of the Treasury, which could have
provided the liquidity directly, but
preferred to have the operational end of
the scheme managed by the bank,
which has more experience and exper-
tise in providing liquidity, albeit not to
energy firms and other non-financial
companies.
Liquidity provision to potentially
insolvent energy companies should be
an explicitly fiscal exercise. A special
purpose vehicle owned by the Treasury
could implement it, and temporary staff
secondments from the BoE or the pri-
vate financial sector could provide the
necessary technical expertise. But the
bank as an institution should not be
involved.
The writer is a former external member of
the Monetary Policy Committee of the Bank
of England. Anne Sibert, professor of eco-
nomics at Birkbeck, University of London,
co-authored this article
20 ★ FINANCIAL TIMES Tuesday 18 October 2022

Monte dei Paschi: glories past due

Monte dei Paschi’s €2.5bn capital increase will strengthen its capital ratios. The bank has already inked a deal
with trade unions to reduce headcount and targets an increased return on equity. Long-suffering investors
will be hoping the promised turnround delivers.

Twitter: @FTLex
Gilts: Hunt sources policy
from bond crowd
“No government can control markets,”
said Jeremy Hunt yesterday morning.
But some markets can control
governments, eh Jeremy?
He owes his job as troubleshooting
chancellor to hard-nosed gilts
investors. They have now pushed him
into limiting a scheme to subsidise
household energy bills. They have also
forced the government to scrap most
tax cuts in the disastrous “mini”
Budget of predecessor Kwasi Kwarteng.
Hunt is crowdsourcing his policy
direction from the markets. He hopes
fiscal prudence will shrink gilt yields
and a £60bn annual hole in the
government’s budget projected by the
Institute for Fiscal Studies for 2026-27.
It could earn Hunt the job of prime
minister, which Liz “busted flush”
Truss must vacate. So far so good. Tax
U-turns should save about £32bn from
an eventual cost of £45bn. Yields for
both gilt maturities tightened some
40 basis points, more than 8 per cent,
between Friday and yesterday’s close.
Curbs on the energy support scheme
signal newfound restraint. The
centrepiece of the scheme was a price
cap worth around £2,500 to the
average household. The cost, estimated
at £150bn over two years, is highly
sensitive to energy prices.
A worsening world economic outlook
and lower gas prices would have
reduced the likely expense to some
£120bn. But a universal scheme will
now only cover this winter. The
government will probably avoid
capping the bills of better-off
households during the winter of 2023,
says Simon French of Panmure
Gordon, saving around £30bn.
That will not help fill the fiscal hole
forecast by the IFS on a three-year
perspective, French says. What matters
here are the interdependent factors of
extra borrowing, gilt rates, Bank of
England base rates and inflation. If the
government can borrow less — which
requires less spending — it can pay less
to borrow. The IFS reckons lower base
rates implied in current gilt prices can
save the UK £7bn a year in debt costs.
Hunt must maintain his uneasy
alliance with gilts investors. Yields will
need to rise in parallel with base rates.
But provided there are no wild swings,
that should be fine.
It is one thing to become leader of
your country by popular acclaim. It is
another to be anointed by the
sovereign bond market. But that is the
trick Hunt may be about to
accomplish.
Fox/News Corp:
family reunion
At 91, Rupert Murdoch’s thirst for
blockbuster dealmaking appears to be
as strong as ever. The media mogul is
seeking to reunite the two pieces of his
empire, Fox and News Corp. He
separated them a decade ago and
subsequently vowed he would never
reunify them.
But the world has changed. Fox sold
much of its film and entertainment
business to Disney in 2019, choosing to
eschew the internecine streaming wars.
Fox then focused on live content in
TV sports and news.
With a global economic storm
gathering, there is safety in scale again.
The Murdoch family knows that News
Corp’s print and digital properties are
particularly vulnerable due to their
reliance on advertising. Time is of the
essence because of the patriarch’s
advancing age. The financials stack up
too.
Fox and News Corp have market
capitalisations of $17bn and $9bn
respectively. Murdoch is seeking an all-
share merger, typically executed with
little to no premium. Each set of
shareholders would only benefit if cost
savings or revenue improvements
could be achieved.
Shares in News Corp are down 30 per
cent in 2022, about double the drop
suffered by Fox. The relative value of
News Corp shares compared with Fox
stock, based on the daily trading prices
of each, has drifted from 0.60 times to
0.49 times from January to today.
News Corp trades at a ratio of about
6.5 times 2023 estimated ebitda to
enterprise value, while Fox is just
under 6 times. If the pair merged at
their market values, Fox shareholders
would own two-thirds of the combined
company.
Such a split is reasonable or slightly
generous to News Corp shareholders,
even though the performance of News
Corp shares this year has hurt the
market-based exchange ratio.
It is a fortunate turn of timing that
Capital increase shores up the balance sheet
Monte dei Paschi (%)
Common equity
tier 1 ratio 11.0
Return on average
tangible equity 4.60
2021
Source: company
Monte dei Paschi di Siena was a
glorious bank in the 15th century.
Things have gone downhill since. Ill-
conceived acquisitions, truly terrible
loans and other mishaps mean that,
over the past 14 years, MPS has
raised more than €23bn of equity —
yet its market cap is basically zilch.
So it is no wonder that investors
are looking at its most recent €2.5bn
capital increase with scepticism. The
stock is down more than 90 per cent
since the bank announced it was
ready to pull the trigger.
If one believed MPS’s turnround
plan, a €2.5bn post capital-increase
market valuation wouldn’t be
unreasonable. It equates to some 0.34
times net tangible book value — on a
return on equity that would hit 9 per
the empirical and theoretical
valuations intersect for a man who is
probably in a rush to get things done.
Apple/China chips:
sold down the Yangtze
So much for long-term strategies.
Apple has put on hold plans to use
chips from China’s Yangtze Memory
Technologies in products such as the
iPhone. Washington’s latest crackdown
topples years worth of Chinese tech
companies’ investment to break into
the US. This bad news could spread.
The timing of recent US export
controls imposed against the Chinese
tech sector could not be worse. Apple
reportedly this month completed a
All about reducing workers...
Operating costs to fall (€mn)
Depreciation & amortisation Personnel
General & administrative
Forecast
2021
14.20 15.40 Forecast
2024
0 200 400 600 800 1000 1200 1400
Source: company
... and boosting the share price
Total return rebased
Monte dei Paschi UniCredit
Euro Stoxx Banks index
Intesa Sanpaolo
8.0 8.70 250
200
150
100
50
2024 2026 0
2020 2021 2022
Source: Refinitiv
cent if MPS met 2024 targets. Or, to put The second is that, even if one
it another way, if new boss Luigi believes MPS can deliver this beast of
Lovaglio delivers on his promises, the a turnround, the bank would still be
stock would trade on a price/earnings no cheaper than much of the
ratio of four times two years hence. bedraggled Italian banking sector. It
There are two issues with this, isn’t clear why even bulls on
however. European banks would choose to bet
The first is whether the market will on the ship already battered by the
believe MPS’s turnround plan. Lovaglio highest waves.
comes with a strong industry record, An exception might be groups with
and has already struck a deal with a special interest in MPS. These
trade unions to reduce headcount and include partners such as Axa, holders
lop €300mn out of costs. Rising of subordinated debt wanting to
interest rates boosting net interest avoid a haircut and even patriotic
income will help with the rest. But the Italian institutions keen to help
bank faces all the usual recession- outgoing prime minister Mario
linked uncertainties, plus a few others Draghi. With so much history and
— including the ever-present legal risk goodwill, this bank still needs a fair
from upset shareholders who lost their wind. Best wait until the weather
shirts. improves.
complicated process to certify hoping for self-sufficiency but to gain
Yangtze’s Nand flash memory for use in from growing global demand. Yangtze
iPhones. This agreement would have Memory is a big beneficiary, and has
boosted both sides. Yangtze could have government-linked funds as key
become Apple’s main supplier for Nand stakeholders. Worse, the latest
flash memory for iPhones. Apple
would have diversified its flash
restrictions ban US chip equipment
makers from providing services that
memory supply chain, sourcing these help Chinese companies make
chips at lower prices than from South advanced chips. Yangtze currently uses
Korea’s Samsung and US-based Micron. chip gear by US-based Applied
Nand flash offered one of the few Materials, KLA and Lam Research.
export hopes for Chinese suppliers. But the real damage to Chinese tech
This type of chip does not require the companies will come from other
high-end technology required to make restrictions. US companies are banned
the more advanced Dram chips. from sharing design, technologies,
Chinese chipmakers are years behind documents or specifications to
rivals such as Samsung and TSMC on unapproved Chinese companies. This
Dram chips. But at least China could goes far beyond chips. Expect other
compete on price in the Nand sector. Chinese Apple suppliers, including
Beijing has spent over $100bn to display maker BOE and assembler
support the local chip industry, not just Luxshare, to soon follow Yangtze’s path.
CLOs:
not a liability
There is a new bogeyman on Wall
Street: collateralised loan obligation.
The rush by UK pension funds to
offload assets to meet margin calls has
hit the $925bn US CLO market.
Leverage loan prices have fallen to as
low as 92 cents on the dollar in recent
weeks. The fear is that stress in this
part of the market could lead to a
credit crunch in the wider leveraged
loan market. But the angst is
misplaced.
CLOs buy up risky corporate loans
and repackage them into securities
with varying levels of risk and return.
Their structure is similar to CDOs, or
collateralised debt obligations. But
while mortgage-backed bonds
contributed to the 2008 financial crisis,
CLOs made it through largely
unscathed and have grown in
popularity since.
They tend to have more diversified
portfolios of debt as well. Last year was
a record year for US CLOs, with nearly
$187bn in new issuance.
Selling by UK pension funds may be
weighing down CLO prices.
Nevertheless, buyers — including
Apollo, Blackstone and Carlyle — are
seizing on the opportunity to pick up
the most senior debt sold by CLOs at a
discount. These only incur losses if the
equity and subordinated tranches are
completely wiped out.
Rising interest rates and a slowing
global economy will put pressure on
leveraged loan borrowers. Some will
get their ratings downgraded.
But even in the most extreme
scenario modelled by S&P Global
Intelligence, in which 60 per cent of
CLO assets get downgraded and the
proportion of CCC loans in a CLO
portfolio jumps to 40 per cent from the
current 4.5 per cent, the AAA or AA
loan tranches should remain
unscathed.
Holders of senior tranches of CLOs
probably have less to worry about than
the specialist asset managers that
package them for sale and the private
equity funds that have come to rely on
them to fund their leverage buyouts.
Lex on the web
For notes on today’s stories
go to www.ft.com/lex

CROSSWORD
No 17,228 Set by LEONIDAS
        ACROSS
1 Coat barrel stuffed with rolled leaves (7)
5 Warn of something in harbour part of
town? (7)
  9 Painter back exactly between 8 and
midday (5)
10 Object about island starting to make
drone (9)
11 Actor touches rear briefly by statue (3,6)
 
12 Verse typified by poet: know it? (5)
13 Chatterers in shoe shop maybe full of
cold (14)
18 Start to party with new hot tub at
    house? (4,3,4,3)
20 One who rebukes husband leaving drink
 (5)
22 Idle talk outside of tower with old school
 class member (9)
24 A fun adult game dressed as big animals
 (9)
25 City nearly finished Guide for Walkers
    (5)
26 Relentless bridging across Avignon’s to
pause (7)
27 Seducer twice taking time to see ruler
  (7)
DOWN
1 Shy around German with good manners
(6)
2 Criminals having posted for female
 
convicts (9)
3 Endlessly recorded and always available
(2,3)
4 Bird event most birds would avoid, I’d
say (9)
JOTTER PAD 5 Glassware on inside of host’s vessel (5)
6 Mark overwhelmed by silly term “artist”
(9)
7 Instruct headless knights over vacuous
foolery (5)
8 Clear dirty bits off extremely dire film
(8)
14 Return of trawlerman perhaps before
Solution 17,227 match (3,6)
15 Scene on satellite shows bottom part of
$ % 6 7 $ , 1 6 7 $ 5 0 $ & coast (9)
& ( 7 < 5 / $ $ 16 Balance supply of issues periodically (9)
&
2
2 1
6
1 2
1
5 6
6
, / / (
9 2
* $ /
/
17 Buzz for one who witnessed a 15 (8)
6 7 $ / ( 0 $ 7 ( : 2 2 ' 6 19 Eye candy gyrating on dais (6)
7 7 0 7 9 21 Prepare to resist chef’s exhortation (3,2)
( / , 7 ( 3 5 , 0 $ 7 ( 6 22 Bad-tempered person finally taking seat
' 2 1 5 1 ' 5 &
$ 1 < 7 + , 1 * 0 $ 7 & +
(5)
$ 2 2 + ( 23 Summary of climbing athlete to follow
' ( / 7 $ 5 $ & 2 1 7 ( 8 5 (5)
5 0 , 5 , 0 2
$ & 5 2 % $ 7 $ 5 7 : 2 5 .
0 $ ( < : 2 2 (
$ 1 * ( 5 6 ) / 2 5 ( 1 & (