MONDAY 31 AUGUST 2020 WORLD BUSINESS NEWSPAPER EUROPE

Arm wrestling Downtown downturn Racism in banking

UK’s tech future rests on fate of its Commercial property crisis ripples What 20 years in finance taught me
chipmaker — JOHN THORNHILL, PAGE 17 through debt markets — BIG READ, PAGE 15 about prejudice — PAGE 16

Tour cycles on Briefing

against virus i French officer held on spying allegations
A French military officer, reported to be a
challenge lieutenant-colonel, has been arrested on suspicion
of spying for a foreign power, Florence Parly, the
defence minister in Paris, said yesterday.— PAGE 2
A cyclist competing in this year’s Tour
de France make his way towards the city i Virus resurgence drags on eurozone
of Nice yesterday, on day two of the Europe is set for an economic rebound in the
sport’s top competition. third quarter but economists are warning that
This year’s event is going ahead with a a resurgence of coronavirus cases will slow
package of measures designed to limit momentum in the region.— PAGE 2
the risk posed by Covid-19. Spectators
will be forced to keep their distance and i Swedish right sees crime as a ‘pandemic’
wear face coverings while the race A wave of violent crimes this
passes by. Some of the towns and vil- month has led to Mattias
lages that mark the route are also intro- Karlsson of the anti-
ducing limits on the number of people immigration Sweden
who can line the street to watch and Democrats to claim that laws
imposing strict social distancing. are too soft. “There is a big
Entire teams will be forced to with- frustration,” he said.— PAGE 2
draw from the 3,470km race if their rid-
ers test positive for the virus. i Huawei shifts focus to cloud computing
Stage two of the race was won by Huawei is focusing efforts to secure its survival on
French rider Julian Alaphilippe. its cloud business, which still has access to US chips
Benoit Tessier/Reuters
despite sanctions against the company.— PAGE 6

i Verdict looms on Argentina debt deal

TikTok’s US sale put at risk after

Argentina will learn today if enough creditors have
accepted its offer to restructure $65bn of foreign
debt, as Buenos Aires insisted its ninth sovereign
debt default would be its last.— PAGE 3

i Man dies in US anti-racism rally clashes

China tightens tech export curbs President Donald Trump criticised Portland’s
Democratic leadership and called for the National
Guard to be deployed after a man was killed in
clashes between opposing US protesters.— PAGE 4

i Japan moves quickly to replace Abe

3 New rules on AI products 3 Deal was expected this week 3 Latest feud in trade dispute
FT REPORTERS
ByteDance’s hopes of reaching a deal to
sell the US operations of its TikTok
video app in the coming days have been
thrown into doubt after Beijing
announced new rules governing tech-
nology exports.
China’s Ministry of Commerce
revealed late on Friday that it had
expanded its list of technologies subject
to export controls to include new rules
related to artificial intelligence.
Inclusion on the list means companies
must obtain government approval for
the export of certain technologies. The
updated list added restrictions for “per-
sonalised information recommendation
services based on data analysis”.
ByteDance-owned TikTok is built on
algorithms that analyse user behaviour
to push personalised content.
People close to the TikTok sale negoti-
ations said the Chinese government’s
decision could derail ByteDance’s plans
to reach a preliminary agreement,
which was expected as early as this
week. Any deal would now take longer
to assess, the people said.
ByteDance could still reach an agree-
ment soon with a US buyer for TikTok,
the people said, but with the added
uncertainty that any deal might face
opposition in Beijing.
“[Zhang] Yiming is trying his best to
do the right thing but there are a lot of
things out of his control,” said one per-
son involved in the negotiations, refer-
ring to the ByteDance chief executive.
Cui Fan, an adviser to the Chinese
Japan is likely to have a new prime minister within
weeks after the ruling Liberal Democratic party set
a rapid timetable for replacing Shinzo, Abe who is
government, told state-run Xinhua shut down unless its US business is sold stepping down because of ill health.— PAGE 4
news agency that ByteDance should to an American entity.
“seriously and cautiously” decide The row over TikTok follows a wider
whether to suspend sale talks. deterioration in relations between Datawatch
Erich Andersen, ByteDance general China and the US, with longstanding
counsel, said: “We are studying the new tensions over trade escalating this year
regulations that were released [on] Fri- Donald Trump following the coronavirus outbreak and EU student numbers fall The number of EU
day. As with any cross-border transac- threatens to the introduction of a new security law in Change in UK univ. acceptances, students accepted
tion, we will follow the applicable laws, shut down Hong Kong. Recent US pressure has 2020 vs. 2017-2019 average, % to study at UK
universities in
which in this case include those of the ByteDance’s focused on the technology sector. EU 2020 has fallen by
US and China.” TikTok video Last week, Kevin Mayer, the chief 7.1 per cent, while
Microsoft, Oracle and Walmart, app unless the executive of TikTok, resigned from his Wales
the number from
which have all shown an interest in buy- business is sold role, pointing to a “sharply changed” England outside the EU has
ing TikTok, did not immediately to a US entity political environment. Earlier in the Scotland risen by 9.8 per
respond to requests for comment. week, the company sued the Trump N. Ireland cent, preliminary
China’s new export restrictions are administration. figures comparing
the latest development in a feud Reporting by Thomas Hale in Hong Kong, Not EU this year to
between Beijing and Washington over Ryan McMorrow in Beijing, -10 -5 0 5 10 the 2017-19
TikTok, the popular video app that James Fontanella-Khan in New York Source: UCAS As of 28 August average show
President Donald Trump has vowed to and Miles Kruppa in San Francisco

Drugs agency ready to fast-track Covid

vaccine but denies pandering to Trump
Kiran Stacey — Washington phase three, we may find that appropri- week that the Trump administration
ate. We may find that inappropriate; we was considering fast-tracking a UK-
The head of the US Food and Drug Ad­- will make a determination.” developed experimental Covid-19 vac-
ministration says he is willing to bypass Dr Hahn’s decision on the go-ahead cine for use ahead of November’s elec-
the normal approval process to author- for a Covid-19 vaccine is likely to be one tion, a move that could allow Mr Trump
Ambani’s Reliance in $3bn ise a Covid-19 vaccine as soon as possi- of the most important and sensitive in to claim he had turned the tide on the
deal for India retail assets ble — but insists he will not do so to US public health history. pandemic. However, Mr Hahn insisted
please President Donald Trump. China and Russia have both approved he would not rush a vaccine in order to
Analysis i PAGE 6 homegrown vaccines without waiting please the president.
Stephen Hahn said his agency was pre- for the end of phase-three trials, which “We have a convergence of the pan-
pared to authorise a vaccine before are the largest and most rigorous of all demic with the political season, and
Austria €3.90 Malta €3.70
Bahrain Din1.8 Morocco Dh45 phase-three clinical trials were com- the tests for a potential drug. But they we’re just going to have to get through
Belgium
Bulgaria
€3.90
Lev7.50
Netherlands
Norway
€3.90
NKr40 plete, provided officials believed the have been criticised by public health that and stick to our core principles,” he
Croatia Kn29 Oman OR1.60 benefits outweighed the risks. But he officials, including in the US, who warn said. “This is going to be a science, medi-
Cyprus €3.70 Pakistan Rupee350
Czech Rep Kc105 Poland Zl 20 defended his organisation against accu- that doing so could be dangerous. cine, data decision. This is not going to
Denmark
Egypt
DKr38
E£45
Portugal
Qatar
€3.70
QR15
sations that it was rushing the process to Dr Hahn insisted there was a safe way be a political decision.”
Finland €4.70 Romania Ron17 boost Mr Trump’s re-election prospects. to make a vaccine available before the A week ago Mr Trump on Twitter
France €3.90 Russia €5.00
Germany €3.90 Serbia NewD420 “It is up to the sponsor [vaccine devel- end of phase-three trials — potentially accused “deep state” elements at the
Gibraltar
Greece
£2.90
€3.70
Slovak Rep
Slovenia
€3.70
€3.70
oper] to apply for authorisation or by issuing an emergency authorisation FDA for moving too slowly in approving
Hungary Ft1200 Spain €3.70 approval, and we make an adjudication for use by certain groups rather than a new treatments for coronavirus, in an
India Rup220 Sweden SKr39
Italy €3.70 Switzerland SFr6.20 of their application,” Dr Hahn said. blanket approval. effort to harm him politically.
Latvia
Lithuania
€6.99
€4.30
Tunisia
Turkey
Din7.50
TL19
“If they do that before the end of The Financial Times reported last Protesters clash in US page 4
Luxembourg €3.90 UAE Dh20.00
North Macedonia Den220

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2 ★ FINANCIAL TIMES Monday 31 August 2020

INTERNATIONAL

Espionage Malmo riot

French officer held as suspected Russia spy Violent crime

the new
Lieutenant-colonel said on August 21 just before returning to
work from holiday in France.
ing the fundamental interests of
France”, according to judicial sources
Mr Macron and his advisers, who
accused Russia of interfering in the elec-
Under Mr Putin, a former KGB officer
and head of its successor, the FSB, Rus-
‘pandemic’,
to have passed top secret
material to GRU agent
“I can confirm that a senior officer is
facing a judicial procedure” initiated by
quoted by AFP.
A spying scandal involving Russia
tion that won him the presidency in
2017, say they have no illusions about
sia’s intelligence services have been
active at home and abroad in recent
claims
Victor Mallet — Paris
the defence ministry, Ms Parly said.
“We’ve taken all the necessary meas-
ures. Now the justice system must do its
would come at an awkward time for Moscow’s sometimes malign intentions
but need to negotiate with him to help
resolve crises from Belarus and Ukraine
months and years.
British police have charged Alexander
Petrov and Ruslan Boshirov, two
Swedish right
A French military officer, reported to be work under normal rules of confidenti-
‘We’ve taken all the to Iran, Syria and Libya. senior GRU officers, with the attempted
a lieutenant-colonel seconded to Nato ality . . . It’s up to them to say what he is necessary measures. Last week, both Mr Macron and murder of the former Russian intelli- Richard Milne — Stockholm
who passed top secret documents to a guilty of and if he is guilty.” Angela Merkel, German chancellor, gence officer Sergei Skripal and his
Russian agent, has been arrested on sus- The arrest was immediately likened
Now the justice system warned Mr Putin against military inter- daughter Yulia in Salisbury in England
Criminals setting up their own
roadblocks in Gothenburg; a 12-year-
picion of spying for a foreign power, by French media to events in the fic- must do its work’ vention in Belarus to help President in 2018.
old girl shot dead in gang crossfire; and
France’s defence minister Florence tional series about the French external Alexander Lukashenko crush the pro- They are also changed with the
beatings involving potential torture —
Parly said yesterday. secret service called Le Bureau des légen- French president Emmanuel Macron, democracy demonstrations that have murder of Dawn Sturgess, who died
a wave of violent crimes this month in
The news was first reported by des. Known in English as The Bureau, it who has courted Vladimir Putin, his shaken his regime after a disputed elec- when she came into contact with the
Sweden has led rightwing opposition
Europe 1 radio, which said the officer portrays the intelligence work of agents Russian counterpart, for more than a tion. novichok nerve agent used against the
politicians to warn of a “second
was stationed at a Nato base in Italy and and double agents involving the Middle year and sought to repair the EU’s The French military officer was Skripals.
pandemic” sweeping the country.
arrested for passing material to an agent East as well as Russia and the US. frayed relations with Moscow on the arrested by the domestic security serv- There was no immediate comment on
of the GRU, Russia’s military intelli- The unnamed officer was arrested for grounds that Russia must be engaged ice the DGSI and was being detained in the French officer’s spying case from In recent weeks, daily incidents of
gence service. He was detained in Paris “spying for a foreign power and damag- rather than ostracised. Paris, Europe 1 said. Nato headquarters in Brussels. shootings, bombs and car fires across
Sweden have knocked its lighter-touch
approach to coronavirus out of the
headlines, offering rightwing parties a

Eurozone Surge in virus cases hindering recovery, warn experts

new opportunity to accuse the centre-
left government of inaction over both
Covid-19 and crime.
“There is a big frustration and anger
at the developments,” Mattias Karlsson,
parliamentary leader of the anti-immi-
Valentina Romei and gration Sweden Democrats, the coun-
John Burn-Murdoch — London
try’s third-largest party, told the Finan-
Europe is set for an economic rebound cial Times. “Our laws are too soft, the
in the third quarter but high-frequency police don’t have the means to investi-
data indicators point to slowing mom­- gate this very serious crime.”
entum in countries that have seen a On Friday night, a large riot broke out
resurgence of cases of the virus — partic- in an immigrant suburb of Sweden’s
ularly Spain. third city Malmo after far-right sympa-
This has prompted economists to thisers burnt the Koran.
warn that the recovery might be slower Ulf Kristersson, head of the Moder-
than previously thought. ates, the main centre-right opposition
The eurozone economy will grow by party, used his summer speech on
8.6 per cent in the third quarter, accord- August 24 to accuse the government of
ing to consultancy Oxford Economics. failing to act after more than 200 shoot-
That would be the fastest pace since ings and 24 deaths this year. “The
records began in 1995, but it would only deadly violence is Sweden’s second pan-
partially claw back the record fall in out- demic,” he said.
put in the second quarter. The governing Social Democrats had
The pandemic plunged the bloc into a until recently enjoyed a boost in the
historic recession, with gross domestic polls from their handling of the corona-
product falling 12.1 per cent quarter-on- virus crisis, where they have largely fol-
quarter between April and June, follow- lowed the recommendations of state
ing a decline of 3.6 per cent in the first epidemiologist Anders Tegnell while
quarter. ploughing billions of krona into the
There was an initial rebound in June economy.
and the pace of the recovery depends on But a nascent conservative bloc —
activity continuing to improve, but involving the Moderates and the Chris-
economists warn that the trend is tian Democrats from the mainstream
threatened by the resurgence of infec- centre-right, plus the previously
tions in several parts of the bloc. shunned Sweden Democrats — is
Sentiment indicators such as consum­- attacking the government on law and
er and business surveys, and alternative Hard hit: the Spanish economy is hubs has declined in recent weeks, France and sentiment indicators held steady or order and migration as many of the sus-
economic data, such as mobility and suffering from a lack of foreign according to mobile phones tracked by improved in August.But, in many other pected criminals are immigrants.
rest­aurant bookings, show that the tourists — Bernat Armangue/AP Google. Trips to retail and entertain- Although business sentiment and alter- respects, their experience of recovery Nicholas Aylott, senior lecturer in
recovery continued in July and August, ment venues, restaurants and bars also native indicators suggest that economic differs. German output has fallen less political science at Sodertorn Univer-
but they also suggest that activity is los- edged down week-on-week in mid-Au- activity is proving more resilient in sev­erely than in other big economies — sity, said the right had been “discom-
ing momentum in some countries. gust. France despite an upsurge in new virus down 11.5 per cent in the second quarter bobulated” by the country’s Covid-19
Both measures are less comprehen- Further, box-office receipts fell infections, other indicators suggest that compared with the end of 2019, com- strategy where the centre-left suddenly
sive and less reliable than official data, sharply in the third weekend of August the recovery may be fragile. Household pared with minus 17 for Italy and minus rallied around a “libertarian” approach
but have become widely watched since after an initial post-lockdown rebound. sentiment and mobility data suggest 18.9 for France — and in many areas of not having a formal lockdown.
the pandemic as a more timely gauge of Usually this is the high season for that activity was largely unchanged activity has returned to normal. But he argued the resurgence in vio-
the economy. Alternative indicators are Spain, when tourists fuel a jump in con- month-on-month in August, although Germany’s truck toll mileage lence had dented the centre-left hopes
also more difficult to interpret as the sumer spending. But the foreign visitors box office revenues dipped. index, which flags factory output, is that coronavirus could tilt the debate
changes in output are less dramatic than are largely missing this year. Jessica Hinds, Europe economist at back to pre-crisis levels and restaurant more towards the economy. “The vio-
during lockdown and they fail to Claus Vistesen, chief eurozone econo- Capital Economics, said the French rec­- bookings are up on last year. “Germany lence is becoming so grotesque it is
account for seasonal effects. mist at Pantheon Macro­economics, overy was likely to outpace that of Spain seems to be the most ad­vanced in terms bound to displace pretty much every-
“The key test of the V-shaped recov- The number of trips to noted that the Spanish economy came as the country was less reliant on tour- of experimental activity data,” said thing else.”
ery thesis is likely to come with the re­- transport hubs is falling into the crisis as the euro’s star per- ism, had larger technology and finance Carsten Brzeski, chief EU economist at Police in Gothenburg reported last
start of schools, and whether that helps again in Spain former, but was now at “the bottom of sectors in which remote working is ING Research. week that criminal gangs in the suburb
drive . . . [activity levels] higher, or % change from pre-crisis levels the pile”. Spanish data “are starting to more common and had benefited from But Italy needs to rebound from a of Angered, which has a large immi-
results in more local lockdowns being (rolling seven-day average) show signs . . . that the jump in new more generous government support. much bigger fall that has wiped out grant population, had put up their own
introduced and activity rolling over,” cases, and associated restrictions, are Yet she warned that there was a risk the more than two decades of growth and roadblocks to control who enters.
said Marchel Alexandrovich, an econo- 0 beginning to take their toll”. economy could plateau well below its pushed up public debt. “It is completely unacceptable,” said
mist at investment bank Jefferies. France Nicola Nobile at Oxford Economics, level before the pandemic hit. As such, the north-south divide that Mikael Damberg, interior minister.
-20
said curbs introduced recently in “France’s road back to pre-crisis lev- plagued the EU economy even before Mr Karlsson said that “many people
Spain response to the surge in new cases had els will be protracted, and output is still the outbreak was set to be exacerbated are feeling insecure in their everyday
-40 Spain
The epicentre of Europe’s recession has led it to revise its forecast for third- set to be below its pre-virus level by the by a two-speed recovery, economists life” and argued that immigration and
had the biggest surge in new infections. -60 quarter gross domestic product. end of 2022,” she said. warned. Mr Brzeski pointed out: “It will integration policies had failed, leading
Sentiment indicators and high-fre- “While we are not yet committed to take until next year, with the European to “segregation and violence”. He added:
quency data suggest that the surge is -80
downward revisions in forecasts for Italy and Germany Recovery Fund kicking in, before the “It’s not really economics or taxes that
having an increasingly negative effect Mar Apr May Jun Jul Aug other countries, the recent rise in infec- Italy and Germany have registered gap between north and south should be are the main sources of conflict in Swed-
on the Spanish economy. tions has inc­reased that probability,” smaller numbers of new infections than narrowed.” ish politics: values, identity, crime —
Source: Google Mobility Reports
The number of trips to transport she warned. France and Spain, and alternative data Wolfgang Munchau See Opinion that is where the debate is.”

Decentralisation
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Sánchez puts onus on Spain’s regions to deal with Covid crisis
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
Daniel Dombey — Madrid “The central government cannot be That decentralisation applies particu- country has a single health system, it is
Trump vs the Valley A Five Star plan? Dear Don...
absent,” said Isabel Díaz Ayuso, the larly to health policy. For almost two far from unitary. During the worst of the
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
Addressing the nation for the first time
HMRC warns Lloyd’s of Brussels Insurance market centre-right leader of the government of decades, the country’s 17 regions have crisis, regions were reluctant to transfer
since Spain’s summer spike in corona-
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80 SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
Briefing
to tap new talent pool with EU base
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

Madrid. “Abandoning its functions will managed healthcare. Last year their patients and medical staff to relieve
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

being swamped
virus cases, prime minister Pedro
i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

expand the pandemic.” combined €62bn budget dwarfed the pressure elsewhere.
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting — LIFE & ARTS

Sánchez made clear whom he consid-

taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
As the handling of the crisis threatens central government’s expenditures of Since then, Spain’s efforts to collect
A survey has revealed that a
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. “If running almost one tower a week

ered most responsible: not him.

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

fresh tax probe

leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parlia-
mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
to become a game of “chicken” between €6bn. The national health ministry has coronavirus data — a vital tool in analys-
In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

Setting up a digital customs system
has been at the heart of Whitehall’s
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
During the gruelling months of spring, the centre and regions, with each calling only about 500 staff. ing and fighting the pandemic — have
CDS, indicating it would be delivered on
time. But last month, it wrote to the i HSBC woos transgender customers
committee saying the programme had The bank has unveiled a range of gender-neutral
RALPH ATKINS — ZURICH it followed “a strategy offull client tax
been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

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

(Deposito Legal) M-32596-1995;

Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
Mr Sánchez’s Socialist-led administra- on the other to act, one big question is The shift in resources began in 1981, been undermined by disparities in how
international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
to make sure that each project gets the
focus and resource it requires for suc-
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
Recent reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
The lure of the exotic
cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair
“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
HMRC’s letters to the select commit- of foreign flora — HOUSE & HOME

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

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

whether Whitehall can implement a
host of regulatory regimes — in areas
ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
tion invoked emergency powers to whether Spain’s decentralised model with the transfer of health competences different regions report infections and
homes for the industry. But Paris bombings — have
Mr Nelson said the city won on The inquiries threaten to undermine thousand” bank accounts opened in
bucked the trend
efforts by the country’s banking sector Switzerland and not declared to French
its transport links, talent pool
and “extremely good regula-
tory reputation”.
Lex page 14
Insurers set to follow page 18
to overhaul business models and ensure
customers meet international tax
requirements following a US-led clamp- Publishing Company, The Financial Times Limited,
of generally low

western Europe
tax authorities.
fatalities from
The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
said it was “astonished at the way this
down on evaders, which resulted in operation has been organised with the
billions of dollars in fines. deliberate exclusion of Switzerland”. It

registered office as above. Local Representative office;

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

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

City watchdog sends a clear message as

maintain lockdown, override regional puts the country at a disadvantage. to Catalonia. It was completed in 2001, fatalities, as well as when they issue
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.

banker loses job over WhatsApp boast How high earners can evade

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Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY

governments and force down infection The number of cases over the past 14 with the last 10 regions, including updates. “Not all the information from
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

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

Shutdown risk as border
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
1135-8262.
Brussels takes tough stance on Brexit
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57

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

Manage your personal account: mma.ft.com

Congressional Republicans seeking to
avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
else”.
Information shared by Mr Niehaus
UAE: Masar Printing & Publishing, P.O. Box 485100,
rates. The political cost was high. days has reached 196 per 100,000 of Madrid, taking over responsibility for the regions is of the same quality,” said a
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

Advertising
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
staff’s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
new media from work-issued devices,
but the situation has become trickier as
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
Dubai. Editor in Chief: Roula Khalaf.
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
fully been singled out for unfavourable
treatment by the council at the behest of
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
require “existing regulatory, budgetary,
supervisory and enforcement instru-
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

Qatar: Dar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97 This time around, the prime minister population, compared with 75 in dozens of hospitals and tens of thou- senior health official. “We have mecha-
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and

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

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

emeaads@ft.com Subscribe In print and online World Markets

lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
44557825
“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

insists, more of the burden should fall France, 23 in the UK, 21 in Germany and sands of staff. Although officially the nisms to minimise the risk that it is not
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
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Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11

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Mar 30
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52.98
1248.80
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1251.10
Fed Funds Eff
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Executive appointments
© THE FINANCIAL TIMES LTD 2017
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Printed in London, Liverpool, Glasgow, Dublin,
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7369.52 -0.63 € index
0.855 0.859 € per £
111.430 111.295 ¥ per €
139.338 139.035 £ index
88.767 89.046 $ index
1.169 1.164 Ger Gov 10 yr
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government. level is above 800. ble but it can generate problems.”

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24111.59 24301.09 -0.78 Oil Brent $
297.38 298.11 -0.24 Gold $
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53.35
1244.85
50.35
53.13
1248.80
0.22 Euro Libor 3m
0.41 UK 3m
-0.32 Prices are latest for edition
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0.34
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Monday 31 August 2020
Argentina’s
ability to turn
corner on debt
questioned
Despite hopes for restructuring deal,
analysts doubt prospects for revival
Benedict Mander — Buenos Aires
Argentina will learn today whether
enough creditors have accepted its offer
to restructure $65bn of foreign debt, as
Buenos Aires insisted the country’s
ninth sovereign debt default would
be its last.
If all goes according to the govern-
ment’s plan, the deal is expected to
bring an end to the default process that
began in May and avoid costly creditor
lawsuits. But some analysts and inves-
tors are sceptical about whether Argen-
tina has turned a corner.
“Is there any reason to suppose things
will be any different this time?” said
Javier Milei, an Argentine economist
who was one of the first to predict the
country’s latest default.
The leftwing government of President
Alberto Fernández had shown little sign
of changing tack in its attempts to revive
an economy in terminal decline for
most of the last century, he argued. Mr
Milei also warned that without a fiscal
surplus and return to economic growth,
President Alberto
Fernández faces
tough choices on
tackling the deficit
and inflation
Argentina’s debt would remain unsus-
tainable. The country was on course for
a deficit of 10 per cent this year and only
a brief rebound in growth was likely
next year, he said.
The restructuring — which the
government has said will shave $38bn
off the value of the country’s debt over
the next de cade — also only
covered a fifth of Argentina’s $323bn
burden. The $130bn owed to public-
sector institutions was a particular
problem because it threatened to boost
inflation, Mr Milei said.
Some economists disagree with the
gloomy prognosis, saying much
depends on how the government plans
to haul the country out of recession. The
IMF said it expected a GDP contraction
of more than 10 per cent this year amid
the coronavirus crisis.
“There is great uncertainty right
now,” said Martin Castellano, Latin
America economist at the Institute of
International Finance. “What investors
most want to know is how economic pol-
icy will look after the restructuring and
the pandemic. That will have big impli-
cations for debt sustainability.”
Argentina has for decades been
plagued by debt defaults, devaluations
Senate president
China threatens reprisals over
Czech official’s Taiwan trip
Kathrin Hille — Taipei
The president of the Czech Republic’s
senate yesterday became the most sen-
ior official from the country to visit Tai-
wan, reflecting a growing backlash
against China in a part of Europe
courted by Beijing.
Milos Vystrcil, the second-highest-
ranked elected official in the Czech Rep­-
ublic, and a delegation of 90 that
included fellow lawmakers, the Prague
mayor and more than 50 business peo-
ple were welcomed by Taiwan’s foreign
minister Joseph Wu. They wore masks
showing Czech and Taiwanese flags.
China, which claims Taiwan as part of
its territory, has described the trip as a
“despicable act” and threatened retalia-
tion against Prague. The visit comes as
Wang Yi, China’s foreign minister, is
touring Europe trying to counter con-
cerns over Beijing’s crackdown on Hong
Kong, on its Uighur muslims and what
many neighbours see as belligerent
behaviour.
In the Czech Republic, sentiment has
soured towards President Milos
Zeman’s policy of closer ties with China.
According to US think-tank Pew,
57 per cent of Czechs hold an unfavoura-
ble view of China, the most negative fig-
ure among those central and eastern
European nations surveyed, countries
that Beijing wants to pull into its Belt
and Road Initiative through a co-opera-
tion framework known as “17 plus 1”.
★ FINANCIAL TIMES 3
INTERNATIONAL
‘If we
continue
on the same
path as
the last
50 years,
nothing is
sustainable’
Marina Dal
Poggetto,
EcoGo
and hyperinflation. Its inflation rate of
more than 42 per cent is among the
highest in the world, and capital con-
trols introduced last year to protect Prices pain:
dwindling foreign exchange reserves pedestrians
have left the peso heavily overvalued. pass a shop in
Investors and economists say that to Buenos Aires
escape the cycle of economic crisis and this month.
boost growth and investor confidence, Argentina’s
the country needs to improve produc- inflation rate is
tivity and exports to generate enough among the
foreign currency to service external highest in
debt. Challenges include restoring faith the world
Juan Ignacio Roncoroni;
in the peso and stimulating domestic Epa-Epe/Shutterstock
saving as well as strengthening institu-
tions and governance.
A new IMF programme, which the
government formally requested on
Wednesday, was an essential step, say
analysts. Argentina only has a year
before hefty interest payments on the
$44bn the fund has loaned it since a cur-
rency crisis in 2018 fall due. “Nothing
less than a full rollover of Argentina’s
repayments will do — but even that
won’t be enough. Argentina must get a
grip on its fiscal deficit if its debt is ever
to be sustainable,” said Mr Castellano.
It is unclear what conditions the IMF
would set before agreeing a new pro-
gramme but analysts say the fund is
likely to take a dim view of growing
intervention in the economy by the gov-
ernment. Last week, internet, television
and mobile phone tariffs were frozen
until the end of the year by a presiden-
tial decree aimed at curbing inflation.
Mr Fernández faces a tough trade-off
between phasing out the printing of
money to finance the deficit or avoiding
unpopular austerity measures and so
fuelling inflation.
The short-term market outlook is not
encouraging, say analysts. Many bond-
holders are likely to sell their debt in the
coming weeks to cut their losses, make
short-term gains or reduce exposure to
Argentina “irrespective of whether
these people believe Argentina is likely
to default in the near term or not”,
according to a former government
official. “There will be tons of specula-
tion about the financial situation of
Argentina in the next months,” said the
former official.
But some economists argue that
Argentina’s debt is only one of the barri-
ers to restoring economic health.
“The problem is the Argentine
character, the country’s idiosyncrasies,”
said Marina Dal Poggetto, executive
director of EcoGo, an economic consul-
tancy in Buenos Aires. “Argentina has a
horrible record. If we continue on the
same path as the last 50 years, nothing is
sustainable.”
“The question is, who is taking the
benefit from close ties [with China],”
Zdenek Hrib, Prague mayor, said, add-
ing that investments promised by Bei-
jing had not materialised.
“The Czech Republic was very strong
in its attitude on human rights in the
past, until 2012, when President Zeman
changed the course,” he said. “But you
should not be servile and let China dic-
tate the rules. The choice is between a
dictatorship and a democracy.”
China insists other nations treat Tai­-
pei like a Chinese province, despite the
fact that Taiwan is independently ruled.
China’s foreign ministry said Mr Vys-
trcil’s visit would undermine the politi-
cal foundation of its relationship with
the Czech Republic.
In January, the Chinese embassy
warned Mr Zeman’s office that if the
visit, then planned by Mr Vystrcil’s
predecessor Jaroslav Kubera, went
ahead, there would be consequences for
Czech companies’ operations in China.
Mr Kubera died of a heart attack on Jan-
uary 20 but plans for the trip survived.
The Czech government has not endor­-
sed the trip. But the Taiwanese govern-
ment and public were enthusiastic
about what was a rare visit by a senior
European official.
Mr Vystrcil’s trip follows that of US
health secretary Alex Azar, the most
senior US cabinet official to visit Taiwan
since Washington switched diplomatic
ties from Taipei to Beijing in 1979.
4 ★
LDP contest
Japan to get new leader within weeks
Abe’s party plans speedy
selection of successor as
candidates vie for position
Robin Harding — Tokyo
Japan is likely to have a new prime
minister within weeks after the ruling
Liberal Democratic party set a rapid
timetable for replacing the departing
Shinzo Abe.
In meetings on the weekend, party
elders discussed plans to vote on Mr
Abe’s replacement by the middle of Sep-
tember, with the electorate restricted to
members of parliament and heads of
regional party chapters. Since Mr Abe is
leaving halfway through his term, party
US intelligence
Security chief
stops election
briefings to
Congress
Lauren Fedor — Washington
The US director of national intelligence
has cancelled in-person election secu-
rity briefings for Congress, prompting
outraged Democrats to accuse the
administration of Donald Trump of
trying to conceal Russian interference
in November’s election.
John Ratcliffe informed Congressional
leaders on Saturday he would no longer
brief them in person on foreign efforts to
interfere in the forthcoming election. In
future, Congress would be informed of
intelligence threats in writing, he said.
“This is a shocking abdication of its
lawful responsibility to keep the Con-
gress informed, and a betrayal of the
public’s right to know how foreign pow-
ers are trying to subvert our democ-
racy,” said Nancy Pelosi, Democratic
speaker of the House, and Adam Schiff,
Democratic chair of the House intelli-
gence committee, who led last year’s
impeachment probe.
“This intelligence belongs to the
American people, not the agencies
which are its custodian. And [they]
have the right and need to know that
another nation, Russia, is trying to help
decide who their president should be.”
In his letter to Congressional leaders,
Mr Ratcliffe said the measure was need­-
ed to prevent the Office of the Director
of National Intelligence’s briefings from
being “misunderstood or politicised”.
“It will also better protect our sources
and methods and most sensitive intelli-
gence from additional unauthorised dis-
closures or misuse,” the letter said.
Chuck Schumer, the Senate’s top
Dem­ocrat, said Mr Ratcliffe had “made
clear he’s in the job only to protect
Trump from democracy, not democ-
racy from Trump”.
“Our intelligence officials have said
there’s an active, ongoing assault on our
democratic process from Russia. Presi-
dent Trump is simply using John Rat-
cliffe to hide the ugly truth from the
American people — that the president is
again receiving the help of the Kremlin.”
This month, the US intelligence com-
munity warned China, Russia and Iran
were all seeking to influence Novem-
ber’s poll, with Kremlin-linked actors
trying to boost Mr Trump, and Tehran
and Beijing seeking to undermine him.
West Africa
France and Mali junta forced to co-operate in effort to stamp out jihadi threat in Sahel
Neil Munshi
west Africa correspondent
When the French ambassador to Mali
and its military chiefs last week held an
audience with the strongman leader
who had just overthrown their ally, it
was an acknowledgment of the facts on
the ground.
With Mali at the centre of a fight against
Business Opportunities
Readers are strongly recommended to take appropriate
professional advice before entering into obligations.
leaders can cite Covid-19 as the reason
to adopt an emergency procedure.
A speedy selection process, avoiding a
full vote of party members, will maxim-
ise the influence of Mr Abe and his allies,
so increasing the chances of a successor
who maintains the policies of Japan’s
longest-serving leader.
As party grandees met, the main can-
didates jostled for position in a weekend
of frantic political activity as the LDP
adjusts to the loss of a leader whose lon-
gevity has damped internal debate. Mr
Abe, who has been prime minister for
eight years, announced on Friday that
he would step down due to ill health.
Two of the front-runners, ex-foreign
minister Fumio Kishida and former
defence minister Shigeru Ishiba, both
Portland clashes
Loggerheads: a Black Lives Matter activist shouts at a Donald Trump supporter in Portland on Saturday night — Paula Bronstein/AP
Trump urges use of troops after Oregon death
Lauren Fedor — Washington
Donald Trump slammed the Demo-
cratic leadership of Portland and called
for the deployment of the National
Guard, after a man was killed following
violent clashes between his supporters
and Black Lives Matter demonstrators
in the Oregon city on Saturday.
“The big backlash going on in Portland
cannot be unexpected after 95 days of
watching [an] incompetent mayor
admit that he has no idea what he is
doing,” the president wrote in a tweet
yesterday. “The people of Portland
won’t put up with no safety any longer.
The Mayor is a FOOL. Bring in the
National Guard!”
Protests have been taking place in
Portland for months, following the
police killing of George Floyd, a black
man, in Minneapolis this summer. The
demonstrations in Portland have often
descended into violence and vandalism,
jihadism that has spread across the
Sahel, the former colonial power must
work with whoever is in charge, no mat-
ter how they came to power.
The overthrow of President Ibrahim
Boubacar Keita, a French ally, in a mili-
tary coup this month was widely con-
demned, including by France. The Afri-
can Union responded by suspending
Mali; the US and EU stopped training
the Malian military; and west African
regional bloc Ecowas shut its member
states’ borders with the country.
On Thursday, the junta behind the
coup announced the release of Mr Keita,
widely known as IBK.
But all parties, including the junta —
the National Committee for the Salva-
tion of the People (CNSP), led by Colo-
nel Assimi Goïta — have said military co-
operation against the jihadist threat will
continue. Col Goïta also met EU, US and
UN envoys last week.
Both France — which has 5,100
counter-terrorist troops in the region —
and Mali fear a resurgent jihadist force
in the area.
“Neither can afford alienating the other
FINANCIAL TIMES
INTERNATIONAL
indicated they were likely to stand,
along with Seiko Noda, a former minis-
ter of internal affairs.
Mr Ishiba, a rival to Mr Abe with
strong support among party members
but limited backing from MPs,
demanded that the party conduct a full
election. “It’s inconceivable to choose
the party leader in an anti-democratic
way,” he told reporters.
Meanwhile, chief cabinet secretary
Yoshihide Suga — a powerful figure in
Mr Abe’s government — fuelled specula-
tion that he would stand with a long blog
post about coronavirus that ended with
a declaration that he would “fulfil my
responsibilities with all my power”.
Mr Suga is regarded as a competent
leader who could win support as the
and have resulted in hundreds of
arrests. They have sparked ire from Mr
Trump and congressional Republicans.
Saturday’s shooting in the city hap-
pened amid widespread clashes
between pro-Trump demonstrators and
Black Lives Matter activists, though it
remained unclear whether the two
incidents were linked.
Portland police have not identified
the man who was killed, although the
Associated Press reported that he had
been wearing a hat with the insignia of
Patriot Prayer, a rightwing group.
“Homicide detectives are aware of
videos circulating on social media that
show the shooting,” local police said. “It
is important for detectives to get a full
and accurate picture of what happened
before, during and after the shooting.”
Police in Portland said a “caravan of
hundreds of vehicles” had made its way
through the centre of the city on Satur-
day evening. Video showed the vehicles
in the current context, especially given
uncertainty about the way forward,” said
Arthur Boutellis, senior adviser at the
International Peace Institute.
“French politicians will say it is about
the stability of the Sahel, it is the south-
ern flank of Europe,” said Mr Boutellis.
“Some will make the migration argu-
ment that the Germans are also making,
[and] in France there’s also the terror-
ism argument,” he said, pointing out
there has never been a terrorist attack
on French soil directed from Mali.
While some of those in the M5-RFP
opposition coalition resent French
involvement, the junta needs to keep
the most powerful actor in the Sahel on
side if it is to maintain power.
Leaders of M5-RFP met the junta on
Wednesday. “We have been reassured
[by the fact] that these troops are sol-
diers, great intellectuals. Mali, across
the entire spectrum, is in a drive to bring
everyone together,” said Issa Kaou Djim,
a movement leader.
But Mr Boutellis added: “The political
class is divided in Mali over [France’s]
presence but some still do recognise that
best candidate to tackle the pandemic
but he does not have a factional power
base in the LDP. In a sign of Mr Suga’s
pivotal role in the contest, Mr Ishiba
praised him as “the backbone of the
government”.
Taro Aso, finance minister, reportedly
told colleagues that he would not be a
candidate, which could boost the
chances of defence minister Taro Kono,
a member of Mr Aso’s party faction. Mr
Kono has given no immediate signal of
his intentions but said it was important
to reflect the voices of party members.
Mr Kono also won an important
endorsement from Shinjiro Koizumi,
the environment minister and son of
former prime minister Junichiro
Koizumi. The younger Mr Koizumi said
carrying pro-Trump signs and waving
US flags.
Mr Trump retweeted one video
showing a line of flag-waving vehicles
heading for Portland, commenting:
“GREAT PATRIOTS!”
Police arrested 10 people for disor-
derly conduct and other similar charges
after “fights, disturbances and colli-
sions” broke out.
In another tweet yesterday Mr Trump
wrote: “Our great National Guard could
solve these problems in less than 1 hour.
Local authorities must ask before it is
too late. People of Portland, and other
Democrat run cities, are disgusted with
Schumer, Pelosi, and their local “lead-
ers”. They want Law & Order!”
Ted Wheeler, Portland mayor, had
written to Mr Trump on Friday telling
him that federal troops should stay
away from the city. “We don’t need your
politics of division and demagoguery,”
he said.
if the French force was not there, the
whole country would collapse even
more . . . The counter argument is that
eight years of French military counter-
terrorism have not really improved the
situation.”
Billions of dollars, tens of thousands
of foreign and domestic soldiers and
countless international initiatives have
failed to quell a crisis that has its roots in
a 2012 coup that left a power vacuum
that was exploited by extremists.
Instead, the conflict has festered, with
A junta tweet shows Colonel Assimi
Goïta meeting French officials
he would not be a candidate himself, but
added: “If defence minister Kono
stands, I would like to support him.”
If Ms Noda can get on the ballot, there
will be at least one female candidate.
Former defence minister Tomomi Inada
— a conservative protégé of Mr Abe —
hinted she may stand as well. “It means
a lot to have a woman showing she wants
the leadership,” Ms Inada said.
Candidates must be nominated by at
least 20 of the 396 Diet members in the
LDP and need to secure an absolute
majority of the electorate for victory.
There are likely to be a number of candi-
dates on the ballot, with the first round
of voting indicating which contenders
have the strength to win.
See Editorial Comment
Law and order has been a constant
refrain from the president as he seeks
re-election in November. Mr Trump has
argued that only he can restore order to
the streets, after days of civil unrest in
the Wisconsin city of Kenosha following
the police shooting of black man, Jacob
Blake.
The protests coincided with the four-
day Republican convention, where Mr
Trump emphasised that he was the man
who could keep the streets safe.
The president is due to visit Kenosha
tomorrow to meet law enforcement
officers.
“This is Trump’s America,” said
Cedric Richmond, campaign adviser for
Joe Biden, Mr Trump’s Democratic chal-
lenger for the presidency.
“He has to own this moment, he has to
own the incompetence around corona-
virus and 180,000 American deaths,
almost 6m infections, almost 38m job-
less claims. He has to own that.”
brutal violence involving ethnic mili-
tias, and al-Qaeda and Isis-linked
groups metastasising across the Sahel in
the seven years since French forces
intervened to crush an Islamist insur-
gency that had captured northern Mali.
About 4,000 people were killed last
year in Mali, the deadliest since the crisis
began in 2012. This year is on track to be
even worse. The violence has spread to
other countries, including south to
Burkina Faso — once relatively stable.
Niger, to the east, has fared better in part
because of the large concentration of
western military forces there, but the tri-
border region between the three coun-
tries has become the centre of the crisis.
As part of its efforts to secure the
region, the UN is spending $1.1bn annu-
ally on Minusma, its 14,000-troop
peacekeeping force in Mali. France
spends $800m a year on Operation
Barkhane and another $130m of mostly
international funding goes to the G5
Sahel Force, made up of local soldiers,
according to World Bank security
adviser Paul M Bisca.
“The scenes of collective joy in the
Monday 31 August 2020
Infrastructure
Pakistan’s
army moves
in on $62bn
Belt and Road
contracts
Stephanie Findlay — New Delhi
Pakistan’s powerful military and civil-
ian parliament are wrestling for con-
trol of China’s $62bn Belt and Road Ini-
tiative in the country.
Supporters of the army, which main-
tains close ties with Beijing, have
exploited dysfunction in prime minister
Imran Khan’s government to push legis-
lation that would give it greater control
over the infrastructure programme.
The China-Pakistan Economic Corri-
dor authority bill proposes carving out a
position to be held by a military officer
to “accelerate the pace” of construction.
Under the proposal, the government
would cede further ground to the mili-
tary, which took over control of Cpec
last year through a presidential ordi-
nance that bypassed parliament.
It would also give the Cpec authority,
whose committee is co-chaired by
China’s National Development and
Reform Commission, Beijing’s top plan-
ning agency, greater financial autonomy
from Islamabad.
“It’s basically building a new institu-
tion that is parallel to the government.
We are in a phase of hybrid martial law,”
said Ayesha Siddiqa, civil-military
researcher at the School of Oriental and
African Studies in London.
“The military is taking decisions with-
out accountability. It has bec­ome very
dangerous. It is a matter of long-term
commitment of national resources.”
The move highlights the growing
influence of the Pakistan military after
Mr Khan struggled to mount a swift
response to the pandemic and rescue
the faltering economy. Ahsan Iqbal,
former planning minister and opposi-
tion MP, said the proposed Cpec auth­-
ority was “superfluous” and weakened
the civilian government while ceding
even more responsibility to the military.
“The incompetence of the [Khan]
gov­ernment is destroying our civil ad­-
min­istration and putting an additional
burden on the military,” said Mr Iqbal.
“We will certainly put forward our
reservations. We are not in favour of
having the Cpec authority. [It] is the
domain of the civil government, if it
can’t do that then what good is it for?”
Proponents of the Belt and Road pro-
gramme argue that Cpec will give Paki-
stan the infrastructure boost needed to
kickstart its economy at a time when it
is struggling to attract global investors.
The US, however, has criticised it as a
debt trap that will leave Islamabad in
thrall to Beijing.
While the new Cpec authority would
still report to Mr Khan, it would have
autonomy to implement its programme
without civilian government oversight,
critics said. The authority “shall be
responsible for conceiving, implement-
ing, expanding, enforcing, controlling,
regulating, co-ordinating, monitoring,
evaluating and carrying out all activi-
ties” related to the corridor, according
to a draft document of the legislation
seen by the Financial Times.
A senior official in the planning minis-
try said that a new draft of the legisla-
tion would be put to cabinet before
being presented to parliament. The
Cpec authority did not comment.
“Cpec is at the intersection of the new
[cold] war between China and the US,”
said Kamal Munir, a Cambridge univer-
sity professor who has advised Islama-
bad on industrial policy.
streets of [the capital] Bamako that fol-
lowed the stepping down of President
Keita speak to the general dissatisfac-
tion of Malians towards the way in
which the country was managed,” said
Ornella Moderan, the Bamako-based
head of the Sahel programme at the
Institute for Security Studies. “It seems
Mali’s international partners have mis-
judged the extent of this dissatisfaction
and the level of dysfunction of Malian
institutions that prompted it.”
The focus now is on the transition.
The junta has outlined a three-year
timeline before it hands over power to
an elected government. Both Ecowas
and France want this accelerated.
The fear is that the coup will make
things worse. The al-Qaeda-linked Jnim
group has told its followers to exploit the
instability.
“Ethnic militias, which have been
responsible for even more violence,
could also be emboldened,” said Ms
Moderan. “While collective attention is
focused on the management of a transi-
tion in Bamako, there is risk that other
forms of insecurity will thrive.”
Monday 31 August 2020
Jonathan Moules How Wharton School’s first African-American dean is putting crisis management into practice y HOW TO LEAD
Reliance to
pay $3.4bn for
Future Group
retail assets
3 Ambani bolsters ecommerce push
3 Shops chain is India’s second largest
Amy Kazmin — New Delhi
Mukesh Ambani’s Reliance Industries
has agreed to pay $3.4bn for the retail
assets of India’s Future Group in a deal
that gives Asia’s richest man a stronger
foundation for a push into ecommerce.
The acquisition of the once-pioneer-
ing retail chain built by Indian entrepre-
neur Kishore Biyani will bolster Mr
Ambani in his plans to battle Amazon
and Walmart-owned Flipkart for domi-
nance of India’s rapidly growing retail
sector.
Reliance Retail was already India’s
largest bricks-and-mortar retailer,
operating supermarkets and conven-
‘You can go to anybody
saying: “If you want to do
retail business in India,
I’m the partner to play”’
ience stores under the Reliance brand,
as well as franchise stores for global
brands such as Hamleys and luxury
goods vendors.
But the acquisition of Future Group’s
retail assets and its back-end infrastruc-
ture will give Reliance control of about
one-third of the bricks-and-mortar
stores of India’s otherwise fragmented
modern retail sector. Future Group is
known for its popular Big Bazaar hyper-
market chain and other retail formats.
Analysts say the deal will give Reli-
ance market dominance of physical
retailing and make it more attractive to
potential investors seeking exposure to
India’s retail sector.
“By taking out Mr Biyani, and absorb-
ing the second-largest retail network in
the country, the gap between them and
anyone else is so much that tomorrow,
Italy’s artisan suppliers fear Covid will break them
Family-run luxury fashion and
leather businesses hit by up to
40 per cent slump in orders
Silvia Sciorilli Borrelli — ROME
Italy’s luxury sector is dominated by
world-renowned brands from Gucci to
Valentino and Versace, but it is tens of
thousands of small family businesses
that form the backbone of the country’s
€78bn fashion and leather industry.
For many of these artisan businesses,
however, the Covid-19 outbreak has
been “the last straw”, said Fabiano Ricci,
a shoe designer in Monte Urano, Fermo,
who produces shoes for his own brand
and international fashion houses.
In the 1990s, half the houses in the
central Italian province of Fermo and
neighbouring Macerata had a clothing
factory in their back garden. Global
competition, high labour costs and sev-
eral recessions forced many artisan out-
fits across Italy to close, with those that
survived doing so by expansion.
Yet for some, their size is proving a
burden. Forced to retain employees
despite having little or no work, many
are struggling to survive. Mr Ricci
employs six people, which he says has
helped his factory pull through the pan-
demic. “I have low fixed costs and varia-
ble production ones and I’m struggling, I
can’t imagine those who face the costs of
multiple fixed-term employees.”
The fashion industry is worth almost
1.5 per cent of Italy’s GDP, with more
than 83,000 active businesses, accord-
ing to Mediobanca. The majority of
these are small companies, employing
almost half a million people.
you can go to anybody saying: ‘If you
want to do some retail business in India,
I’m the partner to play,’” said Arvind
Singhal, chairman of Technopak, a New
Delhi-based consultancy.
Mr Ambani has sold stakes worth
$20bn in his telecom venture, Reliance
Jio, to 15 global investors this year,
including Facebook and Google. He had
also indicated his openness to partner-
ships in the retail business, analysts
said.
In a statement on the Future Group
deal, Mr Ambani’s daughter, Isha
Ambani, director of Reliance Retail
Ventures, said the company “is pleased
to provide a home to the renowned for-
mats and brands of the Future Group”.
The Future Group acquisition is the
latest step in Mr Ambani’s transforma-
tion of Reliance Industries from a heavy
industrial group to a consumer goods
and telecoms conglomerate poised to
profit from the rise of India’s middle
class.
Before the coronavirus crisis, India’s
retail market was worth an estimated
$850bn a year, of which about 10-11 per
cent was modern retail formats, includ-
ing branded bricks-and-mortar stores
and ecommerce companies, while the
rest of the industry was dominated by
small, independently owned “mom-
and-pop shops”. However, in the coming
years, modern retail is expected to grow
at the expense of smaller shops.
Selling his retail chain to Asia’s richest
man is the culmination of years of strug-
gle for Mr Biyani. The self-made entre-
preneur was once dubbed “India’s retail
king” for introducing Indian shoppers
to large-format retail stores with an
unprecedented choice of products
under a single roof.
Analysts said Future Group was bur-
dened with debt of more than $1.7bn.
Retail. Small manufacturers
“Most suppliers have seen orders
drop by around 40 per cent. Business
owners are stuck between a rock and a
hard place because they can’t fire work-
ers but they can’t recover their revenue
either,” Mr Ricci said.
Fashion houses such as Kering, the
French group behind Gucci, and Prada
suffered hits to profit as well as revenues
in the first half. Analysts do not expect
the sector to recover its 2019 revenues
for at least two or three years and the
Italian fashion chamber expects reve-
nues to slump 30-40 per cent this year.
The Italian government has imposed
a ban on redundancies until November
to curb unemployment. While many
contract workers were let go, most
permanent employees have been
furloughed since March. Under the state
scheme, companies’ employee costs are
mainly covered by the government, and
furloughed staff are not allowed to
work. The owner of a leather manufac-
turer in the town of Porto Sant’Elpidio
Italy is Europe’s biggest
employer for artisan clothing
and leather
Workers in small manufacturers (’000s),
2018
0 100 200 300 400 500
Italy
Romania
Poland
Portugal
Germany
Spain
Bulgaria
UK
France
Source: Confartigianato
★ FINANCIAL TIMES
Below zero Pandemic sends real yields on
corporate debt into negative territory
US corporate bonds ‘real yields’ turn negative
Average yield minus breakeven inflation rate (%)
2008 10
Source: Ice Data Services
Joe Rennison — London
The vast scale of central bank sup-
port for the corporate bond market
has fired up prices to the point where
some investors are willing to accept a
loss for buying them, once inflation is
taken into account.
After blasting higher in the market
ructions of March, the real yields on
some high-quality US corporate
bonds, which strip out inflation
expectations from basic nominal
yields, have slipped below zero.
For investment grade corporate
bonds with a maturity of between one
and three years, this is the first time
since March 2017 when President
Donald Trump’s promise of tax cuts
helped push inflation expectations
above bond yields. Bonds with a
admitted that some of his furloughed
employees were working, however. “I
feel awful but the situation is simply not
economically sustainable,” he said on
condition of anonymity. The factory
was shut for more than two months,
with most first-half orders put on hold.
It is gradually resuming production.
Like many suppliers, 40-year-old
family business Valentino Orlandi, in
the town of Corridonia in the Marche
region, was able to avoid furloughing
staff because of a decision to start pro-
ducing personal protective equipment.
“There was a shortage of PPE . . . and
we decided to contribute [to the govern-
ment appeal],” said Cristina Orlandi,
who runs the €1m business with her
parents and sister.
The company, which exports luxury
leather bags to more than 80 countries,
is now selling face masks online and says
a shift to digital has proved a lifeline.
“Stepping up our online presence was a
game changer in the pandemic and it
Fashion statement: even big names
like Gucci have suffered hits to profits
7-10 years 3-5 years
5-7 years 1-3 years
15
maturity of between five and seven
years posted negative real yields this
month for the first time since 2013.
The real yield on government debt
has been negative for most of the year,
reflecting large cuts to interest rates
and the expectation that rates and
growth will stay low for some time.
Corporate bond prices have shot
higher too, particularly since the Fed-
eral Reserve pledged to buy company
debt for the first time.
That has pulled down yields while
expectations for rising inflation have
built for the months and years ahead,
eroding the value of holding higher
quality company debt.
One effect is that, just as some inv­-
estors have shifted from government
to corporate debt, others will now
seek out higher returns in riskier
helped us cope with the drop in interna-
tional orders,” Ms Orlandi said.
But such a switch is not an option for
many. Unions in the northern province
of Como, where 80 per cent of European
silk is made, said about 15,000 workers
in the sector had been furloughed or had
contracts terminated. Silk makers in
Como serve the biggest fashion brands,
but they had already been losing ground
to international competition, especially
Chinese, over the past two decades.
Now, many face extinction and some
business leaders are furious that Rome
has offered loans rather than subsidies
to help suppliers survive the pandemic.
“Fashion companies’ results show an
average drop in revenues of around
30-40 per cent. This obviously has a
devastating impact on suppliers,” said
Carlo Capasa, president of the Italian
national fashion chamber.
“The only way to safeguard the sector
is for the government to step in and rec-
ognise that fashion and its supply chain
is a truly strategic industry for the coun-
try, something Italy excels at globally.”
In recent years major brands have off-
shored parts of their production to Asia
and eastern Europe where labour costs
are lower. “Workers in Italy cost compa-
nies almost three times their net salary,”
said one fashion executive. Despite the
costs, more than 40 per cent of the total
clothing production in Europe is made
in Italy where, historically, the quality
has been hard to match.
But beyond the pandemic, many fear
that technology and globalisation have
outpaced Italian craftsmanship, and the
trend will be hard to reverse without
massive investment. “We are losing the
characteristics that have allowed us to
survive until today,” said Mr Ricci.
12
10
8 are not impacted, we will offer some-
6 thing with a little better quality.”
4 The fresh focus was needed because
2 and consumer products unit was “hope-
0 less” in the face of a US ban that will
-2
20
assets, such as lower-quality corpo-
rate bonds. “It forces you to bear more
risk if you want to be confident that
you are going to generate a yield
above inflation,” said Bill Zox, a port-
folio manager at Diamond Hill Capital
Management. “It’s why we think US
high yield is one of the safest ways to
generate a yield above inflation.”
Low interest rates compared with
inflation could help reduce the bur-
den of debt taken on by corporate
America to outlast the pandemic.
Higher growth means a borrower’s
revenues grow faster, making it more
likely that it will be able to pay back its
lenders. “Policymakers globally are
hell bent on keeping interest rates
below the level of inflation to allow
debt levels to stabilise and ultimately
come down,” said Mr Zox.
5
Huawei shifts
focus to cloud
unit in push
for survival
Kathrin Hille — Taipei
Qianer Liu — Shenzhen
Kiran Stacey — Washington
Huawei is focusing on its budding cloud
business, which still has access to US
chips despite the sanctions against the
company, to secure its survival.
The Chinese group’s cloud computing
business, which sells computing power
and storage to companies, including giv-
ing them access to AI, is far behind Ali-
baba and Tencent, the market leaders in
China. But it is growing rapidly and, in
January, Huawei put the unit on an
equal footing with its smartphones and
telecoms equipment businesses.
A person at a Chinese supplier to Hua-
wei said the cloud business was key to
Huawei’s stabilising in its domestic mar-
ket because Beijing would support the
group through public cloud contracts.
Several people involved in Huawei’s
cloud business said the unit was step-
ping up its offerings.
“We will continue to provide custom-
ers with a package of [cloud] services
and products,” said a person at Huawei
familiar with the strategy. “The quality
of the chips in it may not be as good as
before but, for the other products that
the outlook for Huawei’s smartphone
choke off its access to mobile chips, said
a person familiar with the business. The
consumer unit was responsible for half
of Huawei’s $122bn revenue last year.
Industry executives and analysts said
suppliers of semiconductors needed in
cloud computing were still allowed to
ship to Huawei, while other compon­-
ents were available on the open market.
“Intel has been the supplier of the
main [central processing unit] for Hua-
wei servers, as it secured a licence last
year that allows it to continue to sell to
Huawei,” said a semiconductor industry
executive who declined to be named.
After the US Department of Com-
merce added Huawei to the list of com-
panies barred from doing business last
year, hundreds of enterprises applied
for temporary licences granting exemp-
tion. Despite rules imposed in May and
August prohibiting the sale of any chip
designed or manufactured using US
technology in any transaction involving
Huawei, those licences remain in force.
Additional reporting by Richard Waters
6 ★
Cruise lines flounder over fate of idle fleets
As coronavirus continues to wreck balance sheets, the $150bn industry is facing tough choices on future of its ships
Alice Hancock — London
The English resort of Weymouth is at
the heart of the Jurassic coast, a near-
100-mile stretch of shoreline renowned
for its fossils. But this summer the
region’s geology has faced unexpected
competition for tourists’ attention from
a fleet of vast cruise ships idled close to
the town.
A curiosity for visitors, the hulking
vessels are a grim reminder of the spiral-
ling crisis the pandemic has inflicted on
the $150bn cruise industry. Instead of
trying to top the record 30m passengers
carried last year, the industry’s more
than 60 operators are having to tackle
the fraught and costly question of what
to do with the almost 350 ships that
should be criss-crossing the globe.
The last time ships were idled for any
significant period was after the Septem-
ber 11 terrorist attacks. But executives
say that the coronavirus crisis, which
has left small congregations of ships
moored off coastlines from the US to
Indonesia, is far more life-threatening
for the industry.
“9/11 was the last big thing for the
cruise industry, and it only lasted a short
time, so this is unprecedented,” said
Alex Downes, an industry consultant
who also works as a captain on the
Marella cruise line.
Almost six months since many gov-
ernments imposed lockdowns to curb
the virus, companies are drawing up
plans to sail again. MSC, the largest pri-
vately owned operator, is making a ten-
tative return to the Mediterranean this
month, while Carnival, the world’s larg-
est, is plotting a European relaunch.
But with Covid-19 resurgent in
Europe, pockets of cases erupting in
Asia and the US still struggling to con-
trol the pandemic, the challenge of what
to do with vessels risks becoming even
more urgent as the financial burden on
companies grows.
Last month, Mr Downes handed over
the ship he had most recently captained,
the Marella Celebration, to a Turkish
company that had bought it for scrap.
FINANCIAL TIMES
COMPANIES & MARKETS
Enforced idling: left to right, Queen Mary 2, Marella Explorer, Queen Elizabeth and Britannia, off Weymouth on the UK south coast in July — Luke MacGregor/Bloomberg
How cruise liners measure up Cruise companies seek cash in pandemic Carnival dominates the cruise sector
Vessels by length Capital raised since the beginning of the crisis ($bn) Operators’ market share (%)
Mont, formerly Seawise Giant (longest oil tanker) 458m
Others
(30 companies)
Longest container ships (five vessels of this length) 400m Carnival Corporation MSC
Royal Caribbean Norwegian Cruise Norwegian
Line
Royal
Harmony of the Seas (longest cruise ship) 361m 11.5 Caribbean
7.1 5.3
USS Enterprise (longest aircraft carrier, now retired) 342m
Carnival Corp
F14A Tomcat 19m
0 100 200 300 400 500
“It was sold, so there was no point in
maintaining anything except to the
minimum legal standards . . . there
were 40 of us [on board], where there
are normally 600 crew members and
1,500 passengers,” he said.
Marella is not the only company send-
ing ships to the scrapyard. Royal Carib-
bean, the world’s second-biggest line,
has so far announced the scrapping of
three of its vessels.
Wouter Rozenveld, director of
Sea2Cradle, which specialises in ship
recycling and is overseeing the scrap-
ping of two Carnival liners, said this year
was the first his company had worked
with the cruise industry.
“There will definitely be more ships
scrapped — and more than normal until
this Covid virus is under control,” he
said.
If the pandemic’s ultimate trajectory
is the biggest unknown for the industry,
much of the immediate picture is clear
— and painful. Given the abundant sup-
ply, cruise lines have diminished bar-
gaining power over how much they can
expect for scrapped ships.
Companies are being forced to accept
Oil & gas
China’s Sinopec slides into first half-year loss
Thomas Hale
Sinopec, China’s biggest oil refiner,
posted its first ever loss over a half-year
period on the back of collapsing oil
prices and the coronavirus’s impact on
demand for fuel in the country.
The state-backed company reported a
loss of Rmb21.7bn ($3.2bn) in the six
months to the end of June — the first of
its kind since the group listed in Hong
Kong in 2000, and far below the
Rmb32.2bn reported for the same
period last year.
China’s biggest oil companies have
during the past week unveiled the scale
of losses resulting from the coronavirus
pandemic, which continues to put pres-
sure on its largely state-controlled
energy industry, even as the country
100
80
60
40
20
0
By revenue By passengers
Sources: company; FT calculations; CruiseMarketWatch
“quite a low price” because “it’s a buy-
ers’ market” and taking apart such com-
plicated vessels is “a cumbersome oper-
ation”, pointed out Mr Rozenveld.
Historically, it has been common for
ship owners to send vessels to be dis-
mantled in India and Pakistan, where
costs are far lower. Sea2Cradle esti-
mates that it costs up to $160 per tonne
more to scrap a ship in Europe than in
Asia. For a cruise ship, which averages
25,000 tonnes without fittings or pas-
sengers, that could amount to $4m.
But the industry in south east Asia has
been dogged by allegations of environ-
mental and human rights abuses.
“Having [ships] broken down in
south Asia is very, very inexpensive. It’s
like anywhere else where industrialised
nations are dumping their waste on the
global south where there are poor envi-
ronmental and labour standards,” said
Kendra Ulrich, shipping campaigns
director for the environmental group
Stand.earth.
Carnival has sent its ships to be
scrapped at an EU-approved yard in
Turkey, but Ms Ulrich is concerned that
a lack of global regulation means not
MSC Napoli at
Harland and
Wolff in Belfast
is scrapped after
being grounded
off the English
coast in bad
weather in 2007.
Now cruise ships
face being
scrapped early
Paul McErlane/Bloomberg
enters a period of gradual economic
recovery.
Sinopec processed 111m tonnes of
crude oil in the first half, down 10.5 per
cent on the same period last year, as
lockdown measures to contain the
spread of Covid-weakened demand for
fuel across China.
The figures come days after
PetroChina, the listed arm of China’s
state-owned National Petroleum Corpo-
ration, reported a loss of just under
Rmb30bn in the first half as well as
writedowns of Rmb8.2bn.
PetroChina said it had been
“adversely affected by the sharp drop in
international oil prices and a severe con-
traction of domestic oil and gas
demand”.
Unprecedented weakness in the
Monday 31 August 2020
everyone in the industry will follow suit.
“There is a risk,” she said, that cruise
companies would “cut corners and do
the minimum [in order] to maximise
their profits because they are in such
dire economic straits”.
Analysts at US investment bank Mor-
gan Stanley are dismissive of the idea
that scrapping ships can move the dial
financially for the operators, saying that
the contribution would be “immate-
rial”.
What is clear, though, is that an
assessment of the value of their fleets is
key to whether cruise companies will be
able to ride out this storm. Multiple
companies have used their vessels,
which can cost anything between
$500m and $1bn to build and typically
have a lifespan of 40 years, as collateral
when seeking emergency funding.
Carnival, for example, has raised
more than $10bn since the pandemic
started, including $900m in junk
bonds this month.
The financial firepower is helping
keep ships in what is known as “warm
lay-up” — the condition the majority of
the industry’s fleet is currently in. It
involves a much smaller crew staying on
board to keep a ship in working order,
running taps in cabins, turning over
engines and maintaining more glamor-
ous features such as ice rinks and water
slides.
“All day long the ship is being looked
after, polished, cleaned; there’s obvi-
ously not as much wear and tear without
guests on board,” said Josh Leibowitz,
president of Seabourn, Carnival’s ultra-
luxury cruise line.
Carnival has said it has more than
12,000 staff on board maintaining its
104 ships.
The fate of vessels that are not in
warm lay-up but which have not been
earmarked for scrap is not necessarily
rosy. They are in a state known in the
industry as “cold lay-up”, or essentially
switched off for an extended period.
Nigel Thomas, maritime partner at Lon-
don law firm Watson, Farley & Williams,
is doubtful they will return at all.
“In cruise ship terms, you would have
to spend so much money getting it up
and running again to make the grade,”
he said. Ships, still some way short of
their typical lifespan, are being decom-
missioned.
Before the pandemic, there was a sec-
ondary market for ships where smaller
operators bought up boats from the
industry’s dominant players. And
although deals are still happening —
Fred Olsen, for example, last month
bought two vessels from Carnival-
owned Holland America for an undis-
closed sum — the market is shrinking as
smaller operators go under.
Executives know that their fleets will
remain trapped in various degrees of
hibernation until the public feels confi-
dent to sail again. It is why MSC is spend-
ing €500,000 on health protocols,
including three levels of testing for pas-
sengers, for every seven-day cruise.
“We purposely decided to go signifi-
cantly above and beyond the strictest
guidelines set forth by regional and
national health authorities,” said
Pierfrancesco Vago, MSC’s executive
chairman.
But many operators are aware of the
damage another major outbreak on a
cruise would do. A spate of infections on
an Arctic expedition ship run by Hurti-
gruten, the first company to resume
international cruises since the pan-
demic, was described by one senior
cruise company executive as “embar-
rassing for the whole industry”.
“[The industry] needs to start to evol­-
ve the story from victims to . . . thriv-
ers,” said Seabourn’s Mr Leibowitz. “The
only way it’s going to happen is if people
are feeling confident to go there.”
Until they do, the world’s cruise ships
will be a curiosity, as in Weymouth, in a
way their owners never wanted.
financial performance of China’s oil
majors follows on from hits to the
bottom lines of companies across the
sector globally with BP cutting its divi-
dend for the first time in a decade this
month.
While global oil prices remain weak,
China’s demand for fuel began to revive
in April after severe lockdown measures
were eased.
Sinopec pointed to “increased insta-
bility and uncertainty” in the interna-
tional economy in the second half of the
year but highlighted the economic
recovery in China.
“China has made significant achieve-
ments in control and prevention of the
Covid-19 outbreak, and its economy has
shown a stable and positive momen-
tum,” the company said.
Monday 31 August 2020 ★ FINANCIAL TIMES 7

COMPANIES & MARKETS

Utilities Pharmaceuticals

Veolia targets Suez stake as first merger step Moderna

French group’s €2.9bn bid
for shares held by Engie
is a prelude to full offer
Victor Mallet — Paris
Veolia, the French water, waste manage-
ment and energy group, said it was
offering to buy 29.9 per cent of Suez held
by utility group Engie for €2.91bn as a
prelude to launching a full bid for its
rival.
“Our aim is to bring together and
merge these two companies,” Antoine
Frérot, chief executive, told the FT yes-
terday. “Size is crucial in the global mar-
ket that is being built up and developed
right now,” he said.
A full merger of Veolia and Suez
would create a global company with
annual turnover of some €40bn, a com-
bination Mr Frérot likened to a football
merger of Manchester United and Man-
chester City.
“It’s with this combined size that we’ll
be able to invest in the installations
needed, and finance and eventually
amortise our innovation and research
and development costs,” he added.
The first stage of the planned take-
over is the bid for 29.9 per cent of Suez
Market Questions. Global economy
held by Engie, which is just below the
threshold requiring a full public offer.
Engie owns a total of 32 per cent of
Suez and said at the end of July it was
changing its stance on the stake and was
now looking at its options instead of
hanging on as Suez’s main shareholder.
Veolia is offering €15.58 per Suez
share in cash, a premium of 50 per cent
over the price the day before the Engie
announcement.
Engie’s change of tune was “a historic
chance” for Veolia to pursue its plan to
create “the global super-champion of
ecological transformation”, Mr Frérot
said.
“It’s now or never,” Mr Frérot added,
noting that many countries and regions
— including the EU with its “green new
deal” — were developing plans to help
their economies recover from the coro-
navirus-induced recession by harness-
ing environmentally friendly policies.
A full merger, which Veolia said it
envisaged within 12-18 months of regu-
latory clearances, would require the sale
for competition reasons of Suez’s
French water operations because the
duo are the main businesses in the coun-
try selling their services to municipali-
ties and industries.
Veolia said it had a binding commit-
patents
ment from Meridiam to buy Suez’s
French water business.
probed by US
In the rest of the world with a few
minor exceptions, Suez and Veolia had
agency Darpa
highly complementary businesses, Mr
Frérot said.
The company said the operation Donato Paolo Mancini — Rome
would create value from its first year for
The US Department of Defense’s
Veolia shareholders, largely as a result
research arm is probing patents filed
of operational and purchasing synergies
by and awarded to Moderna, a US bio-
estimated at €500m.
tech company developing a Covid-19
Advisers to Veolia included Messier
vaccine, after researchers accused the
Maris and Perella Weinberg and law
company of failing to disclose govern-
firm Cleary Gottlieb, while the com-
ment funding as it is required to do by
pany’s board was advised by Citi and
federal law.
French law firm Gide.
Researchers at Knowledge Ecology
International, a patient advocacy group,
said in a report that Moderna failed to
disclose in its vaccine patents that it had
received about $25m in grants from the
DoD’s Defense Advanced Research

American jobs in spotlight after lockdown easing
FT reporters
Will US job numbers continue
to strengthen?
US employment data, out on Friday, will
show investors whether the number of
jobs added in August has extended a
rebound that began in May as lock-
downs eased. Nonfarm payroll figures
are set to show 1.58m jobs were added in
August, down slightly from 1.76m in
July, according to economists surveyed
by Bloomberg.
The July data marked the third
consecutive month the gauge was in
positive territory after cratering in April
due to the coronavirus pandemic. But as
the US economic recovery continues to
falter, applications for jobless benefits
have increased.
US Department of Labor figures show
they dipped below 1m in the opening
week of August for the first time since
March but rose to 1.1m in the second
week before hovering near 1m for the
week ending August 22.
The number of Americans receiving
state unemployment support, however,
fell to 14.5m from 14.8m by mid-August,
far below the peak of 24.9m in May. “Job
losses continue at levels worse than any
week seen in the Great Recession over a
decade ago,” said Chris Rupkey, chief
financial economist at MUFG.
He pointed to a slow introduction of a
pandemic-era government support
scheme, which provides $300 a week to
the unemployed, down from $600
under the previous policy that ended
in July. “The unemployed are getting
more desperate by the day, and this
points to darkening skies for the econ- Entertainment
omy in August,” Mr Rupkey said. workers gather
Richard Henderson in Las Vegas to
demonstrate
Can Europe sustain its nascent over their
economic revival? unemployment
European retail sales and employment Bridget Bennett/AFP
data will add to investors’ understand-
ing of how the region is recovering from
the coronavirus pandemic.
Jobless figures come first, tomorrow,
covering the month of July, while the
eurozone consumer spending data are
due on Thursday.
Europe’s unemployment rate has
been relatively stable compared with
the sharp rise in US joblessness since the
pandemic took hold in the spring,
mainly due to the millions of Europeans
who were put on government-
subsidised furlough schemes.
The unemployment rate for the bloc
has increased from 7.2 per cent in March
to just 7.8 per cent in June. On average,
economists expect the furlough
schemes to have helped the jobless rate
to dip slightly to 7.7 per cent in July.
The strength of the labour market is
crucial to support retail sales, which fell
dramatically when the pandemic struck
but have rebounded strongly since May
and returned to pre-crisis levels in June.
Economists on average expect the posi-
tive trend to continue with a 5.9 per cent
rise in eurozone retail sales in July.
Nonetheless, most economists believe
the recent rebound in coronavirus
infection levels across Europe could
bring the economic revival to a halt.
“Rising caution may help limit a resur-
gence of the coronavirus, but it will also
negatively affect consumption,” said
Vincent Allilaire, a senior credit officer
at Moody’s. Martin Arnold
Can China continue its recovery
momentum?
Tomorrow brings manufacturing data
from China. In July, the Caixin gauge of
China’s factory activity beat expecta-
tions to rise at its fastest level in nine
years, though the scale of the gains
resulted in part from declines earlier
this year due to the pandemic.
The measure is expected to show solid
growth again in August, with econo-
mists predicting a reading of 52.3,
slightly below July’s level of 52.8. Any
reading above 50 shows expansion.
That would further solidify a sense of
economic recovery, even from a weak
base, as new cases of the coronavirus
remain low. Another rise in manufac-
turing activity would also come after
data last week showed that profits at
China’s industrial companies rose 19.6
per cent in July — the fastest rate in
more than two years. While that metric
is still down 8.1 per cent on the year to
date, it has risen in each of the past three
months. In July, the Caixin survey
showed new export orders remained in
contraction for the seventh consecutive
month. However, separate official data
from China’s customs administration in
August showed a sharp jump in the
country’s exports in dollar terms, defy-
ing expectations of a decline.
This week’s PMI data, then, may pro-
vide more clarity on the momentum
regarding Chinese exports from its fac-
tories. That, in turn, might hint at the
direction of economic recovery far
beyond its borders. Thomas Hale
Projects Agency, or Darpa, to develop its
vaccine technology.
“It appears that all past and present
Darpa awards to Moderna include the
requirement to report the role of gov-
ernment funding for related inven-
tions,” Darpa spokesman Jared Adams
said in an emailed response to the
Financial Times.
“Further, Darpa is actively research-
ing agency awards to Moderna to iden-
tify which patents and pending patents,
if any at all, may be associated with
Darpa support,” he said.
Mr Adams declined to comment fur-
ther, saying the investigation was con-
tinuing. US federal law required govern-
ment funding to be disclosed in these
circumstances, he noted.
‘As surprising was the
apparent lack of oversight
by the government’
Jamie Love, head of KEI
Disclosure of federal funding in pat-
ents helps establish how public funds
are being used and whether any royal-
ties are being paid to the government,
which is increasingly taking an interest
in high-priced medicines that have been
developed on the back of taxpayer
money.
KEI examined the 126 patents
assigned to Moderna, as well as 154 pat-
ent applications. “Despite the evidence
that multiple inventions were conceived
in the course of research supported by
the Darpa awards, not a single one of the
patents or applications assigned to Mod-
erna disclose US federal government
funding,” KEI researcher Luis Gil
Abinader wrote.
Jamie Love, the head of KEI, said the
lack of disclosure was “surprising”, par-
ticularly as some of the federal grants
covered the technology Moderna hoped
to harness in its Covid-19 vaccine.
“As surprising was the apparent lack
of oversight by the government,” he
added. KEI wrote to Darpa on Thursday
to request an investigation.
Moderna said it believed it had com-
plied with applicable reporting require-
ments regarding patent filings, includ-
ing those related to the Darpa pro-
gramme.
Moderna is developing a vaccine with
the backing of nearly $1bn from the US
FastFT government, mainly from the Depart-
Our global team ment of Health and Human Services’
gives you the Biomedical Advanced Research and
market-moving
news and views, Development Authority. That vaccine,
24 hours a day which uses messenger-RNA, or mRNA,
ft.com/fastft
technology, would be among the most
expensive against Covid-19.

Energy. Environment

Chile aims to turn solar boom into green hydrogen bonanza

Santiago grasps opportunity
to decarbonise economy
through clean revolution
Benedict Mander
Less than a decade ago energy compa-
nies scoffed at Chile’s drive to develop its
renewables sector, rejecting it as too
expensive even though the Andean
country boasts some of the world’s best
sunlight.
Since then, a green technology revolu-
tion has pushed the cost of producing
solar power down 80 per cent, and
renewables now make up 44 per cent of
the mix in a nation no longer dependent
on imported energy.
Chile is hoping this will allow it to
achieve a similar feat with green hydro-
gen, a clean alternative to fossil fuels
that — unlike solar and wind energy —
can be used at any time of day or night
and in any weather conditions.
Green hydrogen is made using elec-
tricity from renewable energy to elec-
trolyse water, separating the hydrogen
and oxygen atoms. As a fuel, hydrogen
produces no emissions, and can be used
in fuel cells or internal combustion
engines in cars, buses, ships and even
spacecraft.
“Chile could be exporting $30bn of
green hydrogen by 2050,” said Juan Car-
los Jobet, energy minister. “That’s how
much copper we export today.”
Copper is the current linchpin of the
mining nation’s economy, accounting
for about half its exports, with huge
demand from China.
Mr Jobet said green hydrogen had the
potential to be “transformational” for
Chile’s economy, with a huge impact on
job creation and local economic devel-
opment. He emphasised the need to
diversify the economy and reduce car-
bon emissions in its mining sector to
comply with the Paris climate goals.
McKinsey calculates that global
investment in green hydrogen — both
the electrolysers required to produce it
and the renewable power plants to run
the electrolysers — should reach about
$500bn by 2030 and $2.5tn by 2050.
“These are very, very big numbers,
and Chile has to find a way of capturing a
part of that investment,” Mr Jobet said.
“But even if it was half that, it would be
gigantic.”
For this to happen, advances will be
required in countries developing the
technology such as the US, Germany,
Japan and the UK to bring the cost of
production to economic levels.
The government’s aim is to produce
green hydrogen for less than $1.50 a kil-
ogramme by 2030, a price that would be
highly competitive in international
markets and allow Chile to replace other
fuels.
Hans Kulenkampff, president of
H2Chile, the green hydrogen associa-
tion, said an inflection point could be
reached as soon as 2027. However, he
cautioned that this would require raised
awareness and understanding of Chile’s
potential, especially in the mining sec-
tor where the government hopes the
technology will be rolled out first, with a
focus on the massive diesel-powered
trucks used to transport rocks.
“In principle everything is possible
but it needs to be scaled up and that is an
issue of capital expenditure,” Mr
Kulenkampff said. This required “an
active state to resolve the chicken and
egg problem” between supply and
demand.
“The question is who pays for the
investment, who pays for the energy
transition . . . we have to solve that and
it is not easy,” he said. While Germany,
for example, had already earmarked
$9bn to promote green hydrogen, devel-
oping economies such as Chile also had
to attend to urgent social problems, he
said. The country endured a wave of
protests against inequality last year.
So far, mining groups in Chile have
proved “timid” in their response to
green hydrogen, said Eduardo Bitran,
former president of Corfo, Chile’s devel-
opment agency.
However, he said more than 65 com-
panies across all sectors, including big
The cost of producing solar power
has fallen 80 per cent in Chile
power sector players such as Siemens,
Enel and AES, were involved in discus-
sions aimed at promoting the technol-
ogy. He added that there were already
about 20 green hydrogen pilot projects
in Chile, including powering forklift
trucks for Walmart and a joint venture
between Enaex, the state explosives
agency, and Engie, the French utility, to
make green ammonia for miners.
Sebastián Carmona, manager for cor-
porate innovation at Codelco, Chile’s
dominant state mining group, said the
company had high hopes for the tech-
nology, having made “pioneering steps
with the introduction of e-mobility in
our subterranean mines and transport”.
But while the group was looking into
the use of hydrogen combustion cells in
truck engines, he said a “careful” assess-
ment of energy and water requirements,
as well as generation and storage costs,
would be needed.
Roberto Muñoz, energy manager at
Antofagasta Minerals, Chile’s largest
private miner, said the company was
“permanently” monitoring the develop-
ment of clean technologies, with Los
Pelambres, one of its largest mines, the
most advanced in studying the use of
green hydrogen.
But Mr Muñoz made clear that more
work was needed to establish economic
viability and safety, adding that it
could still take “several years” before
the technology was commercially
available.
Mr Bitran insisted that it was a
“no brainer” for miners and others to
adopt green hydrogen given the poten-
tial to improve public acceptance of
mining and also the trend towards
greater taxes on polluting companies —
especially cross-border carbon duties
that penalise “environmental dump-
ing”.
Nevertheless, he emphasised the
importance of the state playing a cata-
lysing role and correcting market fail-
ures, with a push needed on the supply
side.
“There is much to do, there is a huge
opportunity, there is a lot of political will
and also a lot of interest from private
players,” Mr Jobet said.
“I am convinced that governments
can create the conditions and provide
regulatory signals, but in the end this is
going to be done by the private sec-
tor . . . which has realised that their car-
bon footprint is getting bigger every
day,” he added.
8 ★
Putting crisis management skills into practice
Wharton School’s first
female, and first African-
American dean sets out
her plans for its future,
writes Jonathan Moules
E
rika James knew that her per-
formance as a leader would
be scrutinised when she was
appointed dean of the Whar-
ton School in February. She is
the first female head of the world’s old-
est business school, founded at the Uni-
versity of Pennsylvania in 1881. She is
also its first African-American dean.
By the time she took up the post in
July, however, the business education
world faced two new challenges — the
economic fallout from the coronavirus
pandemic and a focus on racial justice
following the Black Lives Matter pro-
tests.
When we talk over video shortly after
her official start at Wharton, Ms James is
very upbeat. “Actually, it has felt — and I
don’t want this to be misinterpreted —
invigorating,” she says about her first
few days in the job.
As she points out, she’s well prepared
for this moment: her academic roots lie
in the research and teaching of crisis
management techniques. (She co-au-
thored a 2010 book on the subject: Lead-
ing under pressure: From Surviving to
Thriving Before, During, and After a Cri-
sis.)
“It has been an easy way for me to
learn about the people with whom I am
now working with very closely because
we have been forced to work together in
an intimate way, making hard decisions,
moving quickly due to coronavirus,” she
says.
Business school revenues have been
hard hit during the pandemic because of
their increasing reliance on income
from bespoke executive education
courses for corporate clients, many of
which were cancelled by lockdowns. At
the same time they have had to spend
significant sums on technology to keep
existing degree course classes running
remotely during campus closures.
Wharton, however, is among the
world’s most secure business schools
How to Lead. Erika James, dean of the Wharton School
financially and is able to be highly selec-
tive about who it accepts. It enrolled 856
MBA students last year out of 5,905
applicants. A key challenge for this
school, similar to other elite MBA pro-
viders, has been to become more inclu-
sive: last year’s MBA intake was its most
gender balanced but the class was still
weighted 54:46 in favour of men.
Increasing gender diversity was one of
Ms James’s most notable achievements
in her previous role as dean of Emory
University’s Goizueta Business School.
During her six years at the school’s
Atlanta campus, 46 per cent of the fac-
ulty hired were women while faculty
headcount overall increased by a quar-
ter.
She was raised in Texas by a black
Christian mother and white Jewish step-
father. “I grew up as an only child in a
biracial marriage in the south in the 80s.
At that time that family dynamic and
those kinds of relationships were
not well received but I think it gave
me an openness to appreciate all
COMPANIES & MARKETS
different types of people,” she says.
“My step grandmother, although she
was just my grandmother to me,
referred to me as her most Jewish grand-
child because I was the one most cultur-
ally engaged in her life. And yet I was
also raised Christian from my mother’s
upbringing so I could appreciate and
live in different worlds and traverse
back and forth pretty easily.”
Elite institutions, such as Wharton,
have faced particular criticism for a
longstanding lack of diversity among
students and professors. Among the US
nationals starting Wharton’s full-time
MBA last year — accounting for 70 per
cent of the total intake — 64 per cent
were white, although this was a record
year for Americans of other ethnicities
gaining a place on the course.
Ms James arrives at Wharton at a time
of reckoning with business education’s
poor record on recruiting and retaining
black faculty members. While it is possi-
ble to increase the number of black pro-
fessors at Wharton by hiring existing
talent from other schools, the greater
need is to increase the numbers of black
people becoming academics, Ms James
says.
“In business education we have talked
the game of diversity but not prioritised
it. That is a problem. Fundamentally it
is about changing the [faculty] pipe-
line.”
She was fortunate in having been
encouraged to pursue a career in
academia by the faculty around her at
the University of Michigan while com-
pleting her PhD in organisational psy-
chology. In doing so, they set her on a
different path from her original course
— she had expected to become a con-
sultant.
“What a PhD does is prepare students
‘In business education
we have talked the
game of diversity but
not prioritised it’
How to
restore
growth
Book
review
by Martin Sandbu
Dynamism
by Edmund Phelps et al,
Harvard, $35
A new book by economics Nobel
laureate Edmund Phelps and his
team of collaborators offers a fresh
breath of air to stale debates about
how to restore long-term growth in
advanced economies — although it
does so less by the persuasiveness of
the answers it gives than by the
convincing nature of the questions it
wants us to pose.
Dynamism is bookended by Phelps’s
own essays, which reprise his
longstanding interest in innovation as
both a constituent and consequence
of social and economic modernity.
His thesis includes two thought-
provoking points. First, that
innovation is not simply a matter of
developing commercial applications
from “exogenous” scientific
discoveries as the Schumpeterian
tradition — and much of standard
economic theory — would have it, but
rather the “bottom-up” consequence
of creative individuals seeking and
finding better ways of doing things as
they actively seek change in their
own lives. Second, that their ability to
New dean and
author Erika
James is used to
leading under
pressure — Wharton
School at the University of
Pennsylvania
to go into academia, but because my dis-
cipline was fairly applied as an organisa-
tional psychologist there were also
opportunities to go into consulting or to
go into the corporate sector,” Ms James
says.
“I started graduate school assuming
that [consulting] was the path that I
would go down but I found that I was
quite curious and intrigued by the
research process and that research
allowed me to answer questions that I
had. ”
During graduate school, she took
some time to work for American
Express in New York. “That’s when I
really realised that, as exciting as it was
to work for a world-renowned company,
I liked having the autonomy I got being
an academic, by which I mean I liked
working on things I found interesting
not being told what things to work on.
“I learnt pretty late in the graduate
school game that I was actually being
prepared [for academia],” she says.
“That sealed it and the fact that my
do so is influenced by culture, values
and institutions, with the most
“modern” values and attitudes most
conducive to innovation.
The first claim is an antidote to the
pessimistic view that we have run out
of important discoveries, associated
with economist Robert Gordon’s
analysis of the secular productivity
decline. The second provides Phelps’s
alternative explanation of that
decline: that productivity growth
from “indigenous innovation” has
dried up because societies no longer
facilitate individual creativity in the
way they once did.
Phelps’s perspective is a necessary
complement to the standard
intellectual frameworks that tend to
guide policy thinking around
innovation and productivity growth.
Conventional economics causes a
blind spot to the attitudinal and
cultural factors Phelps thinks are
essential. Whether he is right or not,
it is clearly wrong to rule them out of
consideration altogether.
His iconoclasm shows by example
how economics can benefit from an
open-mindedness to broader social
thinking. Not many economic studies
reference David Hume, Henri
Bergson, Friedrich Hayek, and
Michael Polanyi.
The meat of the book consists of a
series of empirical and theoretical
studies carried out by Phelps’s long-
running research centre at Columbia
University, aimed at probing, and no
doubt ideally underpinning, his
theses. Like them, these explorations
are eclectic, ranging from
mathematical derivations via
econometric estimations to an
interview-based case study of
Icelandic entrepreneurs. Not all of
them hit their mark.
The author, Edmund Phelps
Monday 31 August 2020
dissertation adviser encouraged me to
try academia for a year and if I didn’t
like it, I could go into consulting. I
respected her opinion and wanted to
give it a try.”
Encouraging significant numbers of
black students into careers in academia
will require systemic change. She notes
that there is a bias towards white candi-
dates by majority white faculty commit-
tees — the groups choosing who begins
the process towards becoming a tenured
professor. “It is a long game . . . we have
to start 10 years prior to that, attracting
and promoting research staff,” she says.
Ms James has often spoken publicly
about her leadership principles and the
need to “change our own self-talk”. I ask
her to explain more about this and she
says that it is about putting yourself for-
ward for things that seem challenging
but must be possible because others
have shown they trust you to do them.
“This lesson hit home for me when I
Leadership
More interviews illuminating
the personalities of high-profile
leaders by focusing on the
issues they faced ft.com/
howtolead
started, and was teaching, a women in
leadership programme,” Ms James adds.
“One of the things that was important
for me to convey to this fairly senior
group of women was that we often stand
in our own way and don’t realise what is
there for the next opportunity. We talk
ourselves out of future opportunities,”
she says.
“At Emory I was really forcing myself
to take those leaps. I had never been a
dean before and I did wonder to what
extent I was being put in this role
because of the visibility of being a
woman or the visibility of being an Afri-
can-American. Was I the diversity per-
son they wanted?”
She is talking in her new home, close
to Wharton’s campus. At one point her
husband, Jimmie, a retired ExxonMobil
executive pops up in the background of
our call. “I would consider him my lead-
ership guru,” Ms James says. “He ran
fuels operations [at Exxon] and I have
watched how he inspired people and his
level of integrity for a very long time.”
The team’s work on measures of
total factor productivity (TFP) — or
how much an economy manages to
produce from a given amount of
labour and capital — is particularly
useful. As the book says, of all the
ingredients in the formula for
economic growth, “TFP is the most
mysterious and most intangible one:
as the residual in a growth regression,
it stands for little more than the
ignorance of economists”.
Phelps and his team reduce that
ignorance by dividing TFP growth
into “indigenous” and “imported”
productivity increases, where the
latter involves learning from the most
advanced economy, and the former
reflects domestic innovation.
Examining these over long time
periods yields insights. The team
finds that the economies generating
most indigenous innovation for most
of the 20th century includes not just
the US, but also France before the
second world war. In the past few
decades, the book finds Nordic
countries almost as innovative as the
US, but does not remark on the
exception: they consistently measure
Norway as delivering little indigenous
innovation.
These promising measurement
exercises are unfortunately marred
by unexplained inconsistencies.
Some tables show France nearly
equalling the US’s pace of innovation
throughout the 1950s and 1960s with
the UK near the bottom; in another,
the ranking is the opposite.
The attempt to quantify values and
their effect on innovation also throws
up puzzles. Their indexes of
modernism and traditionalism, for
example, say Sweden was much less
modern than Ireland and much more
traditional than Italy in the early
1990s. This makes it hard to know
what to do with the subsequent
finding that “modernism” boosts
innovation. In any case, it is hard to
believe that values can change fast
and erratically enough to explain the
frequent changes in their innovation
rankings over longer periods.
These shortcomings, however,
mean that if Dynamism’s thesis is not
proven, it is also not disproved. The
questions it asks, therefore, remain
worthy of pondering.
The reviewer is the FT’s European
economics commentator
Monday 31 August 2020 ★ FINANCIAL TIMES 9

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.61% -0.50% -1.41% -1.071% -0.112% -0.05% -0.47%

0.67% 0.60% 0.57% 0.56% 0.57% 0.933% 1.061%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jul 29 - - Index All World Jul 29 - Aug 28 Index All World Jul 29 - Aug 28 Index All World Jul 29 - Aug 28 Index All World Jul 29 - Aug 28 Index All World Jul 29 - Aug 28 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
3,508.01
13,033.20 22,882.65 2,353.80
16,705.79 22,397.11
16,294.66 5,989.99 5,963.57
3,246.22 12,379.65 2,267.01
Day 0.67% Month 9.00% Year 21.47% Day -0.15% Month 3.63% Year 2.67% Day -0.61% Month -2.66% Year -16.14% Day -0.48% Month 1.54% Year 11.39% Day -1.41% Month 0.73% Year 11.86% Day 0.40% Month 6.13% Year 22.30%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
11,695.63
37,794.25 1,429.82 7,133.00 25,422.06
1,399.43 6,996.60 2,582.97 2,539.63
37,136.78 24,710.59
10,587.81
Day 0.60% Month 12.44% Year 48.86% Day 0.39% Month 0.06% Year -7.69% Day -0.50% Month -0.06% Year -2.50% Day NaN% Month NaN% Year NaN% Day 0.56% Month 3.39% Year -0.89% Day 0.79% Month -1.34% Year -17.16%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
28,653.87
39,467.31
5,002.94 19,841.01 3,403.81
105,008.70
102,142.93 4,852.94 19,228.47 37,736.07
26,313.65 3,286.82
Day 0.57% Month 8.62% Year 10.05% Day 1.51% Month -1.89% Year 4.02% Day -0.26% Month 1.50% Year -6.81% Day -0.03% Month -0.27% Year -5.44% Day 1.60% Month 6.20% Year 17.28% Day 0.90% Month 4.04% Year 4.85%

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 46396.58 44254.91 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 21667.08 21667.00 Philippines Manila Comp 5884.18 5921.55 Taiwan Weighted Pr 12728.85 12797.31 Cross-Border DJ Global Titans ($) 421.55 419.20
Australia All Ordinaries 6260.80 6310.60 Czech Republic
PX 908.09 903.88 FTSE Italia Mid Cap 34558.70 34508.72 Poland Wig 52237.26 52528.67 Thailand Bangkok SET 1323.31 1326.81 Euro Stoxx 50 (Eur) 3315.54 3331.04
S&P/ASX 200 6073.80 6126.20 DenmarkOMXC Copenahgen 20 1314.52 1326.15 FTSE MIB 19841.01 19847.38 Portugal PSI 20 4342.98 4371.39 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 991.54 996.84
S&P/ASX 200 Res 4601.30 4688.90 Egypt EGX 30 11462.45 11453.78 Japan 2nd Section 6369.79 6517.90 PSI General 3179.66 3192.87 UAE Abu Dhabi General Index 4535.14 4529.78 FTSE 4Good Global ($) 8818.92 8772.24
Austria ATX 2253.26 2228.48 EstoniaOMX Tallinn 1164.72 1168.14 Nikkei 225 22882.65 23208.86 Romania BET Index 8850.68 8874.51 UK FT 30 2220.40 2240.60 FTSE All World ($) 386.52 384.33
Belgium BEL 20 3378.60 3370.25 FinlandOMX Helsinki General 10106.48 10102.03 S&P Topix 150 1342.56 1350.88 Russia Micex Index 2980.17 3012.01 FTSE 100 5963.57 5999.99 FTSE E300 1429.82 1437.06
BEL Mid 7759.44 7696.53 France CAC 40 5002.94 5015.97 Topix 1604.87 1615.89 RTX 1265.62 1264.86 FTSE 4Good UK 5570.93 5597.18 FTSE Eurotop 100 2698.61 2712.51
Brazil IBovespa 102142.93 100623.64 SBF 120 3958.23 3966.28 Jordan Amman SE 1576.70 1571.57 Saudi-Arabia TADAWUL All Share Index 7934.43 7955.04 FTSE All Share 3342.44 3357.92 FTSE Global 100 ($) 2337.52 2326.07
Canada S&P/TSX 60 1002.28 1005.78
Germany M-DAX 27527.34 27673.74 Kenya NSE 20 1771.18 1706.64 Singapore FTSE Straits Times 2539.63 2519.81 FTSE techMARK 100 5769.39 5812.33 FTSE Gold Min ($) 2707.56 2754.68
S&P/TSX Comp 16705.79 16731.49 TecDAX 3109.49 3129.21 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 330.62 330.62 USA DJ Composite 9353.92 9298.20 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 439.56 445.16 XETRA Dax 13033.20 13096.36 Latvia OMX Riga 1093.13 1090.01 Slovenia SBI TOP 873.85 - DJ Industrial 28653.87 28492.27 FTSE Multinationals ($) 2464.14 2472.71
Chile S&P/CLX IGPA Gen 19657.31 19707.54
Greece Athens Gen 634.47 632.03 Lithuania OMX Vilnius 785.00 778.73 South Africa FTSE/JSE All Share 56057.10 56869.67 DJ Transport 11322.00 11205.61 FTSE World ($) 686.07 682.08
China FTSE A200 12633.53 12339.48 FTSE/ASE 20 1517.65 1510.61 Luxembourg LuxX 1026.55 1024.28 FTSE/JSE Res 20 55723.46 55716.72 DJ Utilities 800.73 800.69 FTSEurofirst 100 (Eur) 3656.19 3669.95
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 25422.06 25281.15 Malaysia FTSE Bursa KLCI 1525.21 1554.78 FTSE/JSE Top 40 51750.45 52583.70 Nasdaq 100 11995.86 11926.16 FTSEurofirst 80 (Eur) 4510.94 4526.85
Shanghai A 3567.58 3511.20 HS China Enterprise 10182.83 10201.94 Mexico IPC 37794.25 37647.19 South Korea Kospi 2353.80 2344.45 Nasdaq Cmp 11695.63 11625.34 MSCI ACWI Fr ($) 583.21 584.03
Shanghai B 250.73 250.81 HSCC Red Chip 4073.40 4030.03 Morocco MASI 10149.46 10212.43 Kospi 200 312.24 311.38 NYSE Comp 13170.96 13068.81 MSCI All World ($) 2442.79 2446.05
Shanghai Comp 3403.81 3350.11
Hungary Bux 34842.51 35470.36 Netherlands AEX 556.80 562.41 Spain IBEX 35 7133.00 7090.70 S&P 500 3508.01 3484.55 MSCI Europe (Eur) 1499.30 1510.20
Shenzhen A 2413.16 2366.58
India BSE Sensex 39467.31 39113.47 AEX All Share 806.10 813.86 Sri Lanka CSE All Share 5320.87 5333.32 Wilshire 5000 35841.57 35585.46 MSCI Pacific ($) 2693.36 2709.43
Shenzhen B 956.19 948.53 Nifty 500 9641.05 9580.70 New Zealand NZX 50 12093.52 12053.43 Sweden OMX Stockholm 30 1776.57 1793.97 Venezuela IBC 513620.69 515882.72 S&P Euro (Eur) 1511.39 1517.12
Colombia COLCAP 1225.22 1227.31
Indonesia Jakarta Comp 5346.66 5371.47 Nigeria SE All Share 25304.25 25330.10 OMX Stockholm AS 700.75 706.10 Vietnam VNI 878.98 874.71 S&P Europe 350 (Eur) 1465.45 1473.25
Croatia CROBEX 2013.05 2011.29
Ireland ISEQ Overall 6505.01 6536.85 Norway Oslo All Share 940.86 946.32 Switzerland SMI Index 10164.49 10240.46 S&P Global 1200 ($) 2718.23 2704.27
Israel Tel Aviv 125 1439.24 1454.15 Pakistan KSE 100 41056.22 41081.94 Stoxx 50 (Eur) 2976.34 2996.57
(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 Aug 28 %Chg %Chg Aug 28 %Chg %Chg Aug 28 %Chg %Chg Aug 28 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 230.5 499.23 -0.81 Bhp 216.7 1712.80 10.00 Bayer Ag Na O.n. 284.6 55.03 -1.51 Softbank . 1217.8 6397.00 -221.00 Aveva 5072.00 19.1 7.6 Provident Fin 246.40 30.3 -46.9 Arrow Global 114.20 42.8 -57.1 Oil Equipment & Services 4770.44 10.4 -
Amazon.com 96.2 3401.80 1.80 Itv 174.0 60.72 -0.86 Bnp Paribas Act.a 212.5 37.81 1.32 Sony 592.7 8280.00 -279.00 Int Consolidated Airlines S.a. 216.30 12.0 -66.0 Cineworld 63.08 23.3 -71.3 Sdl 732.00 21.6 27.5 Travel & Leisure 6778.29 4.2 -
Salesforce.com 75.1 271.10 -5.22 Crh 152.1 2830.00 -47.00 Sap Se O.n. 202.5 139.76 -0.60 Tokyo Electron 475.7 27155.00 -980.00 Wpp 645.60 7.2 -39.6 Onesavings Bank 304.00 19.5 -31.5 Alfa Fin Software Holdings 87.00 20.5 -27.3 Software & Computer Services 2095.96 4.0 -4.6
Nvidia 70.2 525.91 20.78 Royal Dutch Shell 151.8 1063.00 -7.20 Allianz Se Na O.n. 198.7 185.72 1.66 Mitsubishi Ufj Fin,. 455.5 440.60 8.70 Jd Sports Fashion 725.80 6.0 -12.7 Wh Smith 1177.00 18.8 -55.1 Petropavlovsk 36.65 17.8 188.6 Fixed Line Telecommunication 1287.87 2.6 -
Microsoft 57.8 228.91 2.33 Astrazeneca 127.3 8340.00 -77.00 Intesa Sanpaolo 198.1 1.82 0.02 Fast Retailing Co., 428.0 61310.00 -2030.00 Whitbread 2529.00 5.5 -39.9 Petropavlovsk 36.65 17.8 188.6 Ted Baker 110.80 16.0 -68.6 Health Care Equip.& Services 6460.64 1.9 -
Facebook 49.8 293.66 0.44 Rio Tinto 121.4 4635.00 25.50 Asml Holding 194.2 316.70 -3.00 Toyota Motor 407.5 7056.00 -17.00 Compass 1220.50 4.9 -35.9 Carnival 1054.50 14.1 -71.1 Dfs Furniture 170.00 14.7 -41.2 Food Producers 6772.24 1.6 -
Boeing 35.5 175.80 1.60 British American Tobacco 107.6 2532.50 -18.00 Siemens Ag Na O.n. 188.4 118.22 -0.98 M3,. 339.3 6040.00 -320.00 Barclays 111.96 3.7 -39.5 Wood (john) 247.80 12.8 -36.0 Asa Int 171.00 14.0 - Electronic & Electrical Equip. 8811.94 1.1 1.9
Advanced Micro Devices 34.7 85.55 1.75 Anglo American 102.4 1832.60 28.80 Unicredit 184.4 8.45 0.28 Sumitomo Mitsui Fin,. 337.6 3118.00 66.00 Johnson Matthey 2375.00 3.5 -21.7 Easyjet 633.20 10.4 -55.7 Clipper Logistics 419.00 13.2 43.5 Index - Technology Hardware & Equipment 2299.12 1.0 15.9
Amgen 31.7 253.12 0.31 Bp 101.1 264.20 -3.05 Deutsche Post Ag Na O.n. 179.6 38.24 -1.23 Yahoo Japan 334.1 691.00 -32.00 Polymetal Int 2028.00 3.4 70.2 Grafton 779.50 10.3 -13.2 Batm Advanced Communications Ld 133.00 12.7 243.7 Chemicals 12174.41 1.0 -8.7
Walmart 29.8 140.30 3.67 Unilever 100.9 4460.00 -105.00 Adidas Ag Na O.n. 152.6 253.00 -2.60 Recruit Hldgs Co Ltd 295.0 3965.00 -17.00 Scottish Mortgage Investment Trust 961.50 3.3 64.1 Firstgroup 43.66 9.0 -65.7 Electra Private Equity 195.00 11.4 -48.7 Banks 2054.87 0.9 -
3i 938.00 3.1 -16.0 Harbourvest Global Private Equity 1712.00 7.7 -5.2 Countrywide 165.00 11.2 -52.7 Equity Investment Instruments 11177.49 0.9 1.9
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
Intermediate Capital 1367.00 3.0 -16.6 Cairn Energy 141.00 7.6 -30.9 Marston's 53.00 10.5 -59.1 Media 7005.95 0.6 -
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Western Digital 37.84 2.60 7.38 Petropavlovsk 36.65 3.10 9.24 Bnp Paribas Act.a 37.81 1.32 3.60 Thb Dai-ichi Life Insurance , 1585.50 67.00 4.41 Rolls-royce Holdings 241.10 -6.7 -64.6 National Express 126.00 -8.0 -73.4 Amigo Holdings 13.90 -22.0 -80.3 Automobiles & Parts 2695.77 -5.1 -
Carnival 17.21 1.09 6.76 Wood (john) 247.80 14.40 6.17 Unicredit 8.45 0.28 3.45 T&d Holdings, . 1107.00 45.00 4.24 Just Eat Takeaway.com N.v. 8414.00 -5.4 - Ti Fluid Systems 157.66 -7.3 -40.4 Stobart Ld 24.40 -12.7 -77.0 Construction & Materials 6197.76 -4.3 -
Norwegian Cruise Line Holdings Ltd 17.69 1.04 6.25 Calisen 176.00 9.35 5.61 Kbc 49.54 1.63 3.40 Tokio Marine Holdings,. 4943.00 195.00 4.11 Crh 2830.00 -4.9 -8.7 Balfour Beatty 223.00 -5.3 -16.8 River And Mercantile 160.50 -11.3 -36.6 Gas Water & Multiutilities 4676.17 -3.1 -
Hp 19.85 1.15 6.15 Cineworld 63.08 2.92 4.85 Santander 1.96 0.06 3.28 Asahi Holdings, 3671.00 119.00 3.35 Hargreaves Lansdown 1616.50 -4.3 -17.6 Royal Mail 179.50 -5.0 -22.6 Mccoll's Retail 27.50 -11.3 -27.6 Electricity 7391.64 -2.5 -
Marathon Petroleum 37.09 2.11 6.03 Centrica 46.04 2.07 4.71 Credit Agricole 8.90 0.28 3.25 Toho Co.,ltd 3985.00 125.00 3.24 Tesco 218.70 -3.9 -14.5 Hill & Smith Holdings 1216.00 -4.6 -18.7 Rps 42.65 -11.2 -75.5 Beverages 19886.30 -2.4 -
National Grid 843.20 -3.8 -11.3 Syncona 237.50 -4.4 7.0 Topps Tiles 53.00 -10.8 -29.3 Mobile Telecommunications 2541.87 -2.3 -
Downs Downs Downs Downs
Bp 264.20 -3.3 -45.1 Workspace 563.50 -4.2 -53.0 Ricardo 310.00 -9.6 -60.4 Industrial Transportation 1925.85 -1.9 -
Ebay 54.27 -2.04 -3.62 Rank 135.20 -6.20 -4.38 Seadrill 0.26 -0.02 -7.12 M3,. 6040.00 -320.00 -5.03
Pearson 559.40 -3.3 -13.9 Network Int Holdings 374.40 -3.6 -41.0 Pendragon 7.70 -9.4 -39.9 Pharmaceuticals & Biotech. 17420.60 -1.7 -2.3
Tractor Supply 146.91 -4.11 -2.72 Future 1486.00 -58.00 -3.76 Deutsche Post Ag Na O.n. 38.24 -1.23 -3.12 Pacific Metals Co., 1754.00 -88.00 -4.78
Ashtead 2605.00 -3.2 8.5 Bodycote 561.00 -3.4 -41.2 Studio Retail 227.00 -9.2 -4.2 Oil & Gas Producers 4117.44 -1.5 -
Abiomed 303.04 -8.06 -2.59 Schroder Oriental ome Fund 233.00 -9.00 -3.72 Ericsson, Telefonab. L M Ser. B 9.82 -0.32 -3.11 Yahoo Japan 691.00 -32.00 -4.43
Diageo 2509.50 -3.1 -21.2 Talktalk Telecom 73.50 -3.3 -37.7 Carr's 121.50 -8.8 -21.6 Aerospace & Defense 3360.64 -1.5 -32.4
Marketaxess Holdings 484.37 -11.83 -2.38 Rolls-royce Holdings 241.10 -8.90 -3.56 Oci 11.49 -0.35 -2.96 Chugai Pharmaceutical Co., 4673.00 -179.00 -3.69
Severn Trent 2332.00 -3.0 -7.3 Man 122.55 -3.2 -24.0 Saga 13.61 -8.8 -74.8 Industrial Engineering 12439.74 -1.4 -7.4
Kroger Co (the) 35.30 -0.86 -2.38 Melrose Industries 101.80 -3.70 -3.51 Fresen.med.care Kgaa O.n. 70.90 -1.96 -2.69 Dainippon Screen Mfg.co., 5030.00 -190.00 -3.64
Sse 1259.00 -2.9 -13.6 Hammerson 48.43 -3.1 -84.4 Tullow Oil 20.52 -8.7 -65.6 Food & Drug Retailers 4218.48 -1.4 0.8
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
Aug 28 Currency Mid Change Mid Change Mid Change Aug 28 Currency Mid Change Mid Change Mid Change Aug 28 Currency Mid Change Mid Change Mid Change Aug 28 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 73.9937 0.1252 88.0374 0.9468 98.6412 1.2086 Indonesia Indonesian Rupiah 14625.0000 -35.0000 17400.7764 116.6935 19496.6359 160.0733 Poland Polish Zloty 3.6892 -0.0536 4.3894 -0.0234 4.9181 -0.0187 ..Three Month 0.7502 -0.0080 0.8924 -0.0014 - -
Australia Australian Dollar 1.3610 -0.0216 1.6193 -0.0108 1.8144 -0.0094 Israel Israeli Shekel 3.3610 -0.0145 3.9989 0.0192 4.4806 0.0283 Romania Romanian Leu 4.0674 -0.0373 4.8394 0.0000 5.4223 0.0082 ..One Year 0.7504 -0.0080 0.8919 -0.0014 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4486 0.0041 0.5026 0.0053 Japan Japanese Yen 105.3050 -1.1400 125.2915 -0.2066 140.3823 -0.0186 Russia Russian Ruble 74.3075 -0.7725 88.4108 -0.1082 99.0595 0.0290 United States United States Dollar - - 1.1898 0.0108 1.3331 0.0141
Bolivia Bolivian Boliviano 6.9100 - 8.2215 0.0746 9.2117 0.0974 ..One Month 105.3050 -1.1401 125.2915 -0.2066 140.3823 -0.0187 Saudi Arabia Saudi Riyal 3.7504 0.0000 4.4622 0.0404 4.9996 0.0528 ..One Month - - 1.1897 -0.1292 1.3331 0.0141
Brazil Brazilian Real 5.4538 -0.1465 6.4889 -0.1138 7.2705 -0.1163 ..Three Month 105.3049 -1.1402 125.2916 -0.2064 140.3822 -0.0188 Singapore Singapore Dollar 1.3590 -0.0081 1.6169 0.0051 1.8117 0.0085 ..Three Month - - 1.1896 -0.1292 1.3332 0.0141
Canada Canadian Dollar 1.3104 -0.0043 1.5591 0.0091 1.7469 0.0128 ..One Year 105.3044 -1.1412 125.2918 -0.2060 140.3823 -0.0192 South Africa South African Rand 16.6376 -0.3700 19.7953 -0.2565 22.1796 -0.2533 ..One Year - - 1.1888 -0.1292 1.3333 0.0141
Chile Chilean Peso 779.1600 -7.4400 927.0417 -0.3558 1038.7000 1.1743 Kenya Kenyan Shilling 108.1500 -0.0500 128.6765 1.1092 144.1750 1.4592 South Korea South Korean Won 1184.4000 -0.6500 1409.1948 12.0267 1578.9265 15.8452 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.8659 -0.0140 8.1690 0.0577 9.1529 0.0784 Kuwait Kuwaiti Dinar 0.3055 -0.0004 0.3635 0.0029 0.4073 0.0038 Sweden Swedish Krona 8.6559 -0.0900 10.2987 -0.0126 11.5391 0.0034 Vietnam Vietnamese Dong 23175.0000 - 27573.5801 250.3545 30894.7108 326.8517
Colombia Colombian Peso 3761.6200 -59.1300 4475.5625 -29.0840 5014.6252 -24.9456 Malaysia Malaysian Ringgit 4.1655 -0.0070 4.9561 0.0367 5.5530 0.0495 Switzerland Swiss Franc 0.9041 -0.0056 1.0757 0.0032 1.2053 0.0054 European Union Euro 0.8405 -0.0077 - - 1.1204 0.0017
Costa Rica Costa Rican Colon 594.5450 -0.4150 707.3875 5.9326 792.5893 7.8369 Mexico Mexican Peso 21.8555 -0.1910 26.0036 0.0109 29.1356 0.0563 Taiwan New Taiwan Dollar 29.3575 0.0080 34.9294 0.3265 39.1365 0.4246 ..One Month 0.8404 -0.0077 - - 1.1204 0.0017
Czech Republic Czech Koruna 21.9688 -0.3522 26.1384 -0.1780 29.2867 -0.1547 New Zealand New Zealand Dollar 1.4849 -0.0273 1.7667 -0.0161 1.9795 -0.0150 Thailand Thai Baht 31.1625 -0.0675 37.0770 0.2570 41.5428 0.3504 ..Three Month 0.8403 -0.0077 - - 1.1203 0.0017
Denmark Danish Krone 6.2560 -0.0573 7.4433 0.0000 8.3398 0.0126 Nigeria Nigerian Naira 387.4300 0.7800 460.9628 5.1044 516.4838 6.4924 Tunisia Tunisian Dinar 2.7460 -0.0056 3.2671 0.0231 3.6606 0.0313 ..One Year 0.8395 -0.0077 - - 1.1199 0.0017
Egypt Egyptian Pound 15.8669 0.0262 18.8784 0.2023 21.1522 0.2583 Norway Norwegian Krone 8.8131 -0.1142 10.4857 -0.0395 11.7487 -0.0264 Turkey Turkish Lira 7.3465 -0.0220 8.7408 0.0534 9.7936 0.0746
Hong Kong Hong Kong Dollar 7.7503 0.0003 9.2213 0.0840 10.3319 0.1096 Pakistan Pakistani Rupee 166.5000 -0.7000 198.1011 0.9731 221.9615 1.4247 United Arab Emirates UAE Dirham 3.6732 - 4.3703 0.0397 4.8967 0.0518
Hungary Hungarian Forint 297.5038 -4.9390 353.9689 -2.6096 396.6029 -2.3191 Peru Peruvian Nuevo Sol 3.5351 -0.0411 4.2060 -0.0102 4.7126 -0.0043 United Kingdom Pound Sterling 0.7501 -0.0080 0.8925 -0.0014 - -
India Indian Rupee 73.3938 -0.4194 87.3236 0.2983 97.8414 0.4818 Philippines Philippine Peso 48.4850 -0.1500 57.6873 0.3469 64.6355 0.4859 ..One Month 0.7502 -0.0080 0.8925 -0.0014 - -
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 Aug 28 Aug 27 Aug 26 Aug 25 Aug 24 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2220.40 2240.60 2239.70 2230.10 2251.00 0.00 3314.70 1337.80 Leisure Goods 40.08 Electricity -12.08 Consumer Services -21.64 FTSE 100 Price Change FTSE 100 Price Change
Aug 28 chge% Index Aug 27 Aug 26 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Tech Hardware & Eq 34.36 Industrials -12.60 Real Est Invest & Se -21.97 3I Group PLC 938.00 28.20 Kingfisher PLC 270.30 -3.20
FTSE 100 (100) 5963.57 -0.61 5214.54 5999.99 6045.60 7184.32 4.70 1.12 18.95 161.87 5657.01 P/E Ratio net - - - - - 0.00 19.44 14.26 Electronic & Elec Eq 1.67 Nonlife Insurance -12.61 Health Care Eq & Srv -22.80 Admiral Group PLC 2637 -29.00 Land Securities Group PLC 578.10 7.30
FTSE 250 (251) 17788.33 0.15 15554.12 17762.03 17753.57 19292.50 3.66 1.36 20.13 234.96 14034.75 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Food & Drug Retailer 0.48 Industrial Metals & -12.65 Media -23.24 Anglo American PLC 1832.6 -25.20 Legal & General Group PLC 217.30 -6.50
FTSE 250 ex Inv Co (184) 18058.55 0.32 15790.40 18001.48 18000.18 20208.89 4.03 1.32 18.79 211.46 14543.55 FT 30 hourly changes Equity Invest Instr -0.52 Utilities -13.06 Tobacco -23.83 Antofagasta PLC 1074 -6.50 Lloyds Banking Group PLC 28.35 0.25
FTSE 350 (351) 3376.16 -0.48 2952.12 3392.28 3413.27 3994.97 4.52 1.16 19.15 83.32 6384.16 8 9 10 11 12 13 14 15 16 High Low Pharmace & Biotech -1.91 Gas Water & Multi -13.36 Mobile Telecomms -23.88 Ashtead Group PLC 2605 -85.00 London Stock Exchange Group PLC 8800 -52.00
FTSE 350 ex Investment Trusts (283) 3292.79 -0.48 2879.22 3308.79 3330.99 3944.54 4.64 1.14 18.98 82.95 3213.20 2240.6 2236.1 2240.6 2232.6 2399.1 2395.8 2394.3 2414 2426.7 2439.2 2366.1 Technology -2.59 Construct & Material -13.38 Real Est Invest & Tr -23.90 Associated British Foods PLC 2046 46.00 M&G PLC 173.00 5.00
FTSE 350 Higher Yield (150) 2547.46 -0.37 2227.50 2556.92 2575.21 3423.73 7.09 0.99 14.28 90.38 5273.58 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Household Goods & Ho -2.88 Financial Services -13.67 Financials -24.67 Astrazeneca PLC 8340 -97.00 Melrose Industries PLC 101.80 2.82
FTSE 350 Lower Yield (201) 4061.80 -0.58 3551.64 4085.32 4106.85 4255.28 2.06 1.71 28.43 63.26 4792.50 Mining -3.43 Consumer Goods -13.93 Industrial Transport -24.93 Auto Trader Group PLC 563.20 7.00 Mondi PLC 1461 -0.50
FTSE SmallCap (259) 5112.27 -0.04 4470.17 5114.56 5101.60 5365.47 4.33 0.37 62.63 87.21 8060.48 Personal Goods -3.88 FTSE SmallCap Index -14.09 Telecommunications -30.04
FTSE SmallCap ex Inv Co (140) 3883.49 -0.01 3395.72 3883.69 3859.13 4283.68 5.38 0.68 27.50 49.68 6414.42 FX: EFFECTIVE INDICES Health Care -4.28 Food Producers -15.52 Aerospace & Defense -32.20
Avast PLC 536.00 -2.50 Morrison (Wm) Supermarkets PLC 192.30 -4.85
Aveva Group PLC 5072 815.00 National Grid PLC 843.20 -33.40
FTSE All-Share (610) 3342.44 -0.46 2922.63 3357.92 3377.73 3939.37 4.51 1.13 19.60 81.60 6384.51 Basic Materials -4.51 Forestry & Paper -17.57 Travel & Leisure -34.45
Aug 27 Aug 26 Mnth Ago Aug 28 Aug 27 Mnth Ago Aviva PLC 282.70 1.60 Natwest Group PLC 112.80 0.95
FTSE All-Share ex Inv Co (423) 3228.84 -0.47 2823.30 3244.25 3265.28 3861.99 4.66 1.13 19.08 80.60 3200.13 Software & Comp Serv -5.28 FTSE 250 Index -18.71 Fixed Line Telecomms -43.52 Bae Systems PLC 519.60 -10.40 Next PLC 6038 78.00
FTSE All-Share ex Multinationals (536) 1043.70 -0.22 756.39 1046.00 1048.64 1117.78 3.88 1.00 25.72 17.28 2076.49 Australia - - - Sweden - - - Support Services -5.86 NON FINANCIALS Index -18.75 Banks -45.72 Barclays PLC 111.96 3.96 Ocado Group PLC 2497 69.00
FTSE Fledgling (94) 8638.42 0.22 7553.44 8619.78 8591.57 9238.14 3.74 1.22 21.89 147.89 17640.61 Canada - - - Switzerland - - - Chemicals -6.55 FTSE All{HY-}Share Index -20.35 Oil Equipment & Serv -45.78 Barratt Developments PLC 525.20 3.20 Pearson PLC 559.40 -18.80
FTSE Fledgling ex Inv Co (44) 10021.93 0.14 8763.18 10008.37 9929.27 10886.41 4.71 2.82 7.53 119.05 20026.08 Denmark - - - UK 78.65 78.55 76.98 Industrial Eng -8.92 FTSE 100 Index -20.93 Oil & Gas -48.86 Berkeley Group Holdings (The) PLC 4559 32.00 Pennon Group PLC 1006 -2.50
FTSE All-Small (353) 3545.96 -0.03 3100.59 3547.04 3537.91 3726.17 4.30 0.41 56.85 60.55 7172.96 Japan - - - USA - - - General Retailers -10.28 Beverages -21.47 Oil & Gas Producers -48.90 Bhp Group PLC 1712.8 -10.80 Persimmon PLC 2620 -57.00
FTSE All-Small ex Inv Co (184) 2903.77 0.00 2539.06 2903.76 2885.22 3198.69 5.35 0.75 24.87 37.01 6075.46 New Zealand - - - Euro - - - Life Insurance -21.48 Automobiles & Parts -50.71 BP PLC 264.20 -9.15 Phoenix Group Holdings PLC 692.00 -5.20
FTSE AIM All-Share (723) 964.04 0.07 842.96 963.34 965.72 870.53 1.18 1.31 64.64 4.38 1103.59 Norway - - -
British American Tobacco PLC 2532.5 6.50 Polymetal International PLC 2028 67.50
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British Land Company PLC 365.70 5.10 Prudential PLC 1221.5 6.50
Oil & Gas (11) 4271.89 -0.66 3735.35 4300.39 4344.46 8715.09 9.24 1.30 8.33 256.93 4744.34 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bt Group PLC 104.65 2.85 Reckitt Benckiser Group PLC 7510 -28.00
Oil & Gas Producers (8) 4136.22 -0.74 3616.72 4167.17 4208.83 8455.48 9.19 1.32 8.24 252.79 4762.35 Bunzl PLC 2422 17.00 Relx PLC 1702.5 -25.50
Oil Equipment Services & Distribution (3) 4701.77 4.45 4111.23 4501.43 4619.45 8397.97 11.77 0.35 24.32 6.80 4048.58 FTSE GLOBAL EQUITY INDEX SERIES Burberry Group PLC 1444.5 40.00 Rentokil Initial PLC 533.00 3.40
Basic Materials (22) 6061.61 0.82 5300.28 6012.58 6120.68 5874.80 5.46 2.02 9.06 214.06 7237.81 Coca-Cola Hbc AG 1994 -24.00 Rightmove PLC 633.80 14.00
Chemicals (7) 13261.00 -0.81 11595.42 13369.51 13560.11 13192.87 2.25 2.75 16.17 181.48 12710.87 Aug 27 No of US $ Day Mth YTD Total
YTD Gr Div Aug 27 No of US $ Day Mth YTD Total YTD Gr Div Compass Group PLC 1220.5 57.00 Rio Tinto PLC 4635 -51.00
Forestry & Paper (1) 17946.92 -1.58 15692.79 18235.60 18493.56 19279.74 3.01 3.27 10.18 540.55 21862.68 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2830 -147.00 Rolls-Royce Holdings PLC 241.10 -17.20
Industrial Metals & Mining (2) 3555.50 1.92 3108.93 3488.45 3585.07 4934.88 12.52 1.60 4.99 453.68 4783.24 FTSE Global All Cap 8862 651.61 0.8 6.4 2.4
3.9 998.56
2.1 Oil Equipment & Services 32 182.71 -1.8 -1.8 -31.8 303.69 -29.2 5.8 Croda International PLC 5900 -10.00 Royal Dutch Shell PLC 1063 -12.20
Mining (12) 17555.18 1.09 15350.25 17365.20 17684.99 16762.95 5.81 1.97 8.73 639.62 11060.58 FTSE Global All Cap 8862 644.62 1.1 5.3 1.3
2.8 987.78
2.1 Basic Materials 349 523.69 1.0 1.0 1.9 881.95 4.2 3.0 Dcc PLC 6628 -8.00 Royal Dutch Shell PLC 1106.8 -9.00
FTSE Global Large Cap 1770 593.37 1.0 7.0 4.6
6.3 936.52
2.2 Chemicals 159 761.03 1.0 1.0 1.5 1270.95 3.5 2.7 Diageo PLC 2509.5 -80.50 Rsa Insurance Group PLC 449.30 3.30
Industrials (100) 5238.77 -1.05 4580.78 5294.40 5351.30 5440.90 2.53 0.85 46.71 47.09 5791.10
Construction & Materials (15) 6398.45 -1.19 5594.81 6475.35 6621.82 6183.29 2.91 0.38 91.68 99.48 7354.94 FTSE Global Mid Cap 2177 797.08 0.4 4.4 -3.9
-2.7 1148.68
2.0 Forestry & Paper 20 248.17 1.2 1.2 -10.8 470.03 -8.3 3.1 Evraz PLC 324.20 -0.60 Sage Group PLC 740.60 5.60
Aerospace & Defense (9) 3535.60 -1.33 3091.53 3583.16 3597.99 5100.43 3.62 -1.85 -14.97 60.64 4076.56 FTSE Global Small Cap 4915 832.86 0.2 5.3 -3.7
-2.5 1155.31
1.8 Industrial Metals & Mining 92 339.97 0.5 0.5 -10.1 573.90 -8.4 3.2 Experian PLC 2790 26.00 Sainsbury (J) PLC 183.80 -4.45
General Industrials (7) 4239.85 -2.62 3707.33 4354.03 4401.25 4670.18 3.57 1.04 26.82 25.34 5252.04 FTSE All-World 3947 384.81 0.9 6.5 3.1
4.7 624.04
2.1 Mining 78 808.78 1.2 1.2 11.0 1392.53 14.0 3.6 Ferguson PLC 7376 -14.00 Schroders PLC 2898 -22.00
Electronic & Electrical Equipment (10)10402.55 -0.97 9095.99 10504.34 10504.51 8991.07 1.33 1.86 40.23 24.25 9925.77 FTSE World 2593 683.00 0.9 6.5 2.8
4.4 1486.41
2.1 Industrials 747 450.93 0.4 0.4 0.5 691.17 1.8 1.8 Flutter Entertainment PLC 12380 120.00 Scottish Mortgage Investment Trust PLC 961.50 31.00
Industrial Engineering (13) 13429.35 -0.74 11742.63 13529.26 13772.54 13252.25 2.63 1.44 26.38 140.51 17513.49 FTSE Global All Cap ex UNITED KINGDOM In 8560 689.25 0.8 6.6 3.6
5.2 1037.30
2.0 Construction & Materials 147 547.10 0.3 0.3 -1.3 880.65 0.2 1.9 Fresnillo PLC 1262.5 28.50 Segro PLC 952.80 -15.00
Industrial Transportation (6) 2952.82 0.31 2581.95 2943.67 2918.67 3702.60 7.32 0.74 18.56 0.00 2987.17 FTSE Global All Cap ex USA 7088 497.88 0.6 4.2 -4.0
-2.1 832.22
2.7 Aerospace & Defense 37 650.07 -0.7 -0.7 -27.4 981.20 -26.6 2.3 Glaxosmithkline PLC 1472 -43.20 Severn Trent PLC 2332 -71.00
Support Services (40) 8583.97 -0.64 7505.83 8639.68 8730.29 8294.84 1.79 2.16 25.80 57.20 9493.94 FTSE Global All Cap ex JAPAN 7513 673.94 0.8 6.7 2.8
4.4 1042.82
2.1 General Industrials 67 209.12 0.4 0.4 -8.3 351.04 -6.5 2.7 Glencore PLC 169.18 0.84 Smith & Nephew PLC 1521.5 33.50
FTSE Global All Cap ex Eurozone 8215 686.27 0.8 6.7 3.1
4.6 1029.83
2.1 Electronic & Electrical Equipment 142 531.95 0.4 0.4 4.5 740.42 5.8 1.6 Gvc Holdings PLC 804.20 18.00 Smith (Ds) PLC 258.70 -6.60
Consumer Goods (42) 17332.20 -0.99 15155.28 17506.32 17508.85 20007.70 4.69 1.63 13.10 484.97 14559.89
FTSE Developed 2167 627.17 0.9 6.7 3.6
5.1 968.84
2.1 Industrial Engineering 142 875.16 0.7 0.7 5.5 1335.72 7.2 1.9 Halma PLC 2218 7.00 Smiths Group PLC 1402 -20.50
Automobiles & Parts (2) 2709.58 -0.37 2369.26 2719.60 2748.34 3999.98 0.91 2.98 37.02 0.00 2772.49
FTSE Developed All Cap 5629 651.15 0.9 6.6 2.7
4.2 991.82
2.1 Industrial Transportation 125 826.49 0.2 0.2 9.1 1272.88 10.4 1.7 Hargreaves Lansdown PLC 1616.5 -73.50 Smurfit Kappa Group PLC 2674 -8.00
Beverages (6) 19938.98 -1.12 17434.65 20164.78 20202.65 27537.76 2.86 1.63 21.45 528.83 15308.86
FTSE Developed Large Cap 880 592.75 1.0 7.2 5.1
6.8 931.92
2.1 Support Services 87 566.85 0.7 0.7 12.3 819.95 13.3 1.2 Hikma Pharmaceuticals PLC 2371 22.00 Spirax-Sarco Engineering PLC 10245 -200.00
Food Producers (10) 6821.60 -1.08 5964.81 6896.28 6873.22 7111.28 2.62 2.08 18.33 73.60 6318.19
FTSE Developed Europe Large Cap 232 357.78 0.7 2.5 -6.8
-4.6 666.23
3.1 Consumer Goods 535 531.45 0.7 0.7 4.1 852.34 5.8 2.3 Homeserve PLC 1299 -38.00 Sse PLC 1259 -38.00
Household Goods & Home Construction (14)14621.66 -0.33 12785.19 14669.92 14775.52 13411.22 3.71 1.85 14.60 272.34 11740.25
FTSE Developed Europe Mid Cap 355 605.51 1.2 5.7 -4.2
-2.8 985.46
2.4 Automobiles & Parts 126 444.55 2.2 2.2 16.7 695.33 18.4 1.9 HSBC Holdings PLC 330.15 2.00 St. James's Place PLC 979.80 -8.00
Leisure Goods (2) 23296.39 1.99 20370.37 22842.62 22612.84 12684.47 2.18 1.06 43.24 182.24 24231.64
FTSE Dev Europe Small Cap 695 815.75 1.3 5.9 -9.2
-7.9 1279.48
2.2 Beverages 67 644.69 0.3 0.3 -9.0 1041.75 -7.6 2.6 Imperial Brands PLC 1253 0.00 Standard Chartered PLC 392.40 0.50
Personal Goods (6) 31841.29 -2.05 27842.04 32507.40 32384.93 38058.49 3.20 2.90 10.77 679.19 23674.49
FTSE North America Large Cap 253 772.52 1.3 9.3 10.8
12.3 1121.54
1.7 Food Producers 131 712.00 0.5 0.5 4.4 1167.82 6.5 2.3 Informa PLC 413.40 7.20 Standard Life Aberdeen PLC 237.20 -5.00
Tobacco (2) 26265.92 -0.90 22966.93 26504.49 26365.59 32212.86 9.29 1.16 9.31 1312.48 20782.27
FTSE North America Mid Cap 411 925.56 0.2 4.1 -2.2
-1.1 1238.53
1.7 Household Goods & Home Construction 58 562.13 -0.2 -0.2 11.0 896.78 12.9 2.2 Intercontinental Hotels Group PLC 4406 126.00 Taylor Wimpey PLC 122.50 1.85
Health Care (15) 12321.74 -0.92 10774.13 12436.16 12621.83 12515.97 3.42 1.24 23.53 356.21 10671.03
FTSE North America Small Cap 1297 926.69 0.1 5.6 -2.9
-2.0 1198.12
1.5 Leisure Goods 42 287.56 1.1 1.1 18.7 395.02 19.7 1.0 Intermediate Capital Group PLC 1367 40.00 Tesco PLC 218.70 -8.80
Health Care Equipment & Services (6) 6524.50 0.17 5705.02 6513.16 6459.94 8705.47 2.11 1.39 34.24 80.81 5975.50
FTSE North America 664 497.65 1.1 8.4 8.4
9.8 738.18
1.7 Personal Goods 98 908.72 0.5 0.5 0.8 1348.45 1.9 1.6 International Consolidated Airlines Group S.A. 216.30 23.10 Unilever PLC 4460 -49.00
Pharmaceuticals & Biotechnology (9) 17358.78 -1.03 15178.52 17539.30 17841.57 17074.95 3.56 1.23 22.81 530.70 13508.84
FTSE Developed ex North America 1503 258.13 0.6 3.5 -5.1
-3.3 464.63
2.8 Tobacco 13 865.09 -0.2 -0.2 -13.2 2127.89 -9.8 7.1 Intertek Group PLC 5876 26.00 United Utilities Group PLC 831.20 -18.20
Consumer Services (82) 4452.39 -0.65 3893.17 4481.60 4448.35 5249.88 3.43 1.51 19.28 55.85 4542.03 FTSE Japan Large Cap 179 391.92 0.4 3.0 -1.2
0.1 544.67
2.4 Health Care 279 648.62 0.1 0.1 6.2 994.81 7.7 1.8
Food & Drug Retailers (5) 4382.16 -1.26 3831.77 4437.88 4460.89 3864.87 3.04 1.12 29.29 78.41 5507.45 Itv PLC 60.72 0.58 Vodafone Group PLC 111.44 -2.82
FTSE Japan Mid Cap 327 580.54 0.1 3.1 -7.6
-6.4 766.26
2.2 Health Care Equipment & Services 96 1244.57 -0.1 -0.1 6.1 1494.70 6.7 0.8 Jd Sports Fashion PLC 725.80 41.00 Whitbread PLC 2529 131.00
General Retailers (25) 2160.60 -1.00 1889.23 2182.35 2195.08 2008.31 2.49 2.06 19.51 8.19 2699.63
FTSE Global wi JAPAN Small Cap 843 633.79 0.3 1.8 -8.9
-7.6 866.95
2.3 Pharmaceuticals & Biotechnology 183 434.68 0.2 0.2 5.9 708.22 8.0 2.4 Johnson Matthey PLC 2375 80.00 Wpp PLC 645.60 43.20
Media (17) 7127.71 -1.07 6232.47 7204.78 7132.18 9137.75 3.82 1.58 16.55 112.95 4795.28
FTSE Japan 506 162.97 0.3 3.0 -2.5
-1.2 253.61
2.3 Consumer Services 450 647.38 1.5 1.5 16.1 904.49 16.9 1.1 Just Eat Takeaway.Com N.V. 8414 -476.00
Travel & Leisure (35) 6631.86 0.25 5798.90 6615.39 6484.08 9349.48 3.87 1.39 18.54 81.59 6804.90
FTSE Asia Pacific Large Cap ex Japan 926 761.00 0.4 6.3 4.7
6.7 1310.62
2.5 Food & Drug Retailers 67 280.12 -0.1 -0.1 -5.0 421.77 -3.2 2.6
Telecommunications (6) 1590.36 -1.67 1390.61 1617.44 1626.63 2261.72 8.51 -0.44 -26.87 43.50 2150.62 FTSE Asia Pacific Mid Cap ex Japan 836 866.08 0.0 6.8 0.0
1.8 1430.83
2.7 General Retailers 147 1253.51 1.7 1.7 38.5 1684.70 39.2 0.7
Fixed Line Telecommunications (3) 1335.12 -1.15 1167.43 1350.65 1360.94 2011.67 13.38 1.27 5.90 3.51 1463.01
Mobile Telecommunications (3) 2538.02 -1.85 2219.24 2585.81 2598.83 3523.65 6.89 -1.54 -9.44 90.67 3094.49
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1787
1762
570.90
592.71
0.1
0.4
5.5
6.4
5.1
7.1
4.3
6.3
922.64
2.6 Media
1084.33
2.5 Travel & Leisure
85 399.37
151 428.83
3.2
-0.1
3.2 3.9 561.53
-0.1 -17.2 612.24 -16.4
4.7 1.3
2.1
UK STOCK MARKET TRADING DATA
Utilities (8) 6712.88 -0.81 5869.74 6767.69 6805.12 6519.56 6.28 0.90 17.66 275.03 9269.55 FTSE Emerging All Cap 3233 785.07 0.4 4.9 -0.6
1.5 1285.67
2.5 Telecommunication 96 149.67 0.3 0.3 -6.7 321.83 -3.8 4.5 Aug 28 Aug 27 Aug 26 Aug 25 Aug 24 Yr Ago
Electricity (3) 7374.86 -1.36 6448.58 7476.63 7513.78 6615.11 6.30 0.81 19.66 459.42 13518.86 FTSE Emerging Large Cap 890 761.07 0.4 5.2 0.4
2.5 1254.48
2.4 Fixed Line Telecommuniations 43 116.55 0.0 0.0 -13.9 281.20 -10.8 5.6 - - - - - -
Gas Water & Multiutilities (5) 6180.03 -0.64 5403.82 6219.86 6255.34 6143.81 6.28 0.93 17.13 212.92 8413.05 FTSE Emerging Mid Cap 890 888.94 0.1 3.5 -8.7
-6.6 1453.47
2.9 Mobile Telecommunications 53 172.83 0.6 0.6 3.6 325.25 5.9 3.2 Order Book Turnover (m) 81.29 51.18 28.13 34.08 95.99 95.99
Financials (308) 3876.38 0.22 3389.51 3867.83 3885.57 4550.20 4.17 0.54 44.73 67.49 4024.40 FTSE Emerging Small Cap 1453 748.70 0.1 4.4 -1.0
1.2 1176.10
2.7 Utilities 189 294.18 -0.8 -0.8 -7.4 639.64 -5.1 3.6 Order Book Bargains 740522.00 624020.00 693453.00 667761.00 687432.00 687432.00
Banks (11) 2027.70 0.84 1773.02 2010.81 2029.62 3373.97 6.51 -0.19 -81.27 0.02 1670.04 FTSE Emerging Europe 75 323.73 0.2 -2.3 -26.4
-23.9 601.57
5.8 Electricity 132 331.37 -0.7 -0.7 -6.9 709.90 -4.7 3.6 Order Book Shares Traded (m) 1651.00 1107.00 1218.00 1179.00 1300.00 1300.00
Nonlife Insurance (8) 3240.14 0.30 2833.18 3230.44 3244.89 3546.88 4.39 1.43 15.89 77.16 6368.74 FTSE Latin America All Cap 244 652.70 -0.7 -5.3 -33.7
-32.7 1106.79
2.8 Gas Water & Multiutilities 57 293.71 -1.0 -1.0 -8.6 659.93 -6.2 3.5 Total Equity Turnover (£m) 3473.35 4555.24 3518.92 4336.73 5218.23 5218.23
Life Insurance/Assurance (7) 6449.47 0.66 5639.42 6407.39 6465.97 6549.44 3.72 2.22 12.11 229.31 7302.86 FTSE Middle East and Africa All Cap 328 582.86 0.3 3.5 -15.5
-13.3 1003.28
3.5 Financials 864 221.57 0.0 0.0 -16.2 399.34 -14.4 3.2 Total Mkt Bargains 954541.00 813529.00 875988.00 849503.00 872933.00 872933.00
Real Estate Investment & Services (17) 2291.69 0.02 2003.85 2291.17 2306.02 2330.26 2.41 1.92 21.64 23.01 6561.58 FTSE Global wi UNITED KINGDOM All Cap In 302 283.11 0.8 2.3 -20.8
-19.0 536.96
4.6 Banks 279 154.55 -0.1 -0.1 -27.7 305.37 -25.8 4.5 Total Shares Traded (m) 8806.00 7808.00 6531.00 8352.00 6675.00 6675.00
Real Estate Investment Trusts (39) 2294.73 0.10 2006.52 2292.46 2303.23 2537.03 4.30 -0.90 -25.85 48.50 3242.68 FTSE Global wi USA All Cap 1774 849.81 1.0 8.2 7.7
8.9 1191.03
1.6 Nonlife Insurance 74 271.25 0.2 0.2 -12.1 424.19 -10.4 2.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (39) 9408.43 -0.20 8226.74 9427.53 9465.78 9509.84 3.57 0.96 29.21 254.82 12095.53 FTSE Europe All Cap 1431 422.19 0.9 3.2 -7.2
-5.2 755.44
2.9 Life Insurance 56 200.03 -0.1 -0.1 -17.1 356.24 -14.5 3.7 (c) Market closed.
Equity Investment Instruments (187) 11185.21 -0.27 9780.35 11215.24 11192.30 10509.86 2.54 1.26 31.18 189.17 6643.86 FTSE Eurozone All Cap 647 413.06 0.9 3.5 -5.0
-3.2 736.97
2.4 Financial Services 212 368.93 0.3 0.3 -0.4 539.67 1.0 1.9
Non Financials (302) 4048.36 -0.69 3539.88 4076.60 4102.48 4775.64 4.63 1.32 16.43 108.54 6793.25 FTSE EDHEC-Risk Efficient All-World 3947 416.64 0.2 4.2 -3.7
-2.3 623.69
2.4 Technology 292 480.20 2.5 2.5 33.5 614.22 34.5 0.9
Technology (16) 2204.62 -0.53 1927.72 2216.47 2207.96 1944.12 3.07 0.09 367.77 27.72 3068.32 FTSE EDHEC-Risk Efficient Developed Europe 587 327.47 1.1 4.8 -3.1
-1.5 543.72
2.6 Software & Computer Services 154 819.21 3.8 3.8 34.8 979.47 35.3 0.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2347.05 -0.49 2052.26 2358.65 2358.83 2143.04 3.26 -0.03 -888.25 29.57 3455.14 Oil & Gas 146 237.62 -1.0 -2.5 -34.7
-32.2 438.10
5.9 Technology Hardware & Equipment 138 367.90 0.9 0.9 32.3 501.29 33.9 1.4 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (2) 5845.90 -0.95 5111.66 5901.71 5653.98 3355.25 1.19 3.38 24.80 69.78 7256.73 Oil & Gas Producers 104 224.10 -0.8 -3.7 -36.5
-34.1 422.39
6.0 Alternative Energy 10 175.81 0.9 0.9 38.9 249.88 41.0 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Real Estate Investment & Services 162 332.25 0.1 0.1 -10.0 608.16 -7.8 3.0 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment Trusts 81 432.95 -0.5 -0.5 -12.7 941.56 -10.7 4.0 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6028.05 5987.37 6008.94 6021.67 5998.96 6003.54 6001.49 5994.81 5976.11 6028.05 5962.60 FTSE Global Large Cap 1770 585.76 1.1 1.1 3.2 924.45 4.9 2.2
FTSE 250 17794.17 17746.23 17764.86 17769.05 17737.53 17758.72 17763.65 17794.42 17776.59 17804.59 17701.73 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5116.83 5115.57 5120.36 5120.94 5138.32 5128.03 5130.37 5131.09 5123.29 5140.53 5112.27
FTSE All-Share 3371.52 3351.80 3362.13 3367.96 3357.19 3359.69 3358.98 3357.00 3347.91 3371.52 3340.45 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Time of FTSE 100 Day's high:07:03:00 Day's Low15:29:00 FTSE 100 2010/11 High: 7674.56(17/01/2020) Low: 4993.89(23/03/2020) WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE All-Share Day's high:07:03:00 Day's Low07:42:00 FTSE 100 2010/11 High: 4257.93(17/01/2020) Low: 2727.86(23/03/2020) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Group companies and is used by FTSE International Limited under licence.
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 Alba Mineral Resources Int 0.000 0.000 0.304L 0.376L 0.008L 0.012L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Amigo Holdings 1st 48.800 71.500 1.400 22.600 0.600 3.800 0.00000 0.00000 - 3.089 9.320 07/31 45.00 AIM AEXG AEX Gold Inc 45.50 -1.56 53.00 44.00 8058.0
There are currently no rights offers by any companies listed on the LSE. Benchmark Holdings 3rd 81.566 90.110 27.440L 18.226L 3.830L 3.950L 0.00000 0.00000 - 0.000 0.000
Beowulf Mining Int 0.000 0.000 0.000 0.000 0.000 0.000 0.00000 0.00000 - 0.000 0.000
Beowulf Mining Int 0.000 0.000 0.394L 0.000 0.060L 0.000 0.00000 0.00000 - 0.000 0.000
Bigblu Broadband Int 25.826 30.526 6.790L 0.397L 12.100L 1.200L 0.00000 0.00000 - 0.000 0.000
Cadence Minerals Int 0.000 0.000 1.262L 0.285L 1.370L 0.340L 0.00000 0.00000 - 0.000 0.000
Curzon Energy Int 0.000 0.000 0.367L 0.584L 0.004L 0.007L 0.00000 0.00000 - 0.000 0.000
Essentra Int 448.400 506.600 7.900 53.100 2.300 11.600 0.00000 6.30000 - 0.000 20.700
New Century AIM VCT 2 Int 0.057L 0.234 1.240L 5.080 0.00000 0.00000 - 0.000 3.400
TOC Property Backed Lending Trust Int 0.265 0.606 0.980 2.250 0.00000 1.50000 - 1.492 3.250

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.
10 ★ FINANCIAL TIMES Monday 31 August 2020

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 30.04 0.35 39.70 26.08 7.37 14.26 214035 Lockheed 395.59 6.02 442.53 266.11 2.56 16.07 110584.04
ANZ 18.40 -0.06 28.79 14.10 7.79 13.23 38343.33 Nokia 4.17 -0.04 4.84 2.08 2.38 67.35 28071.66 AstellasPh 1652.5 -60.00 1987 1406 2.54 15.14 29216.11 AtlasCpcoB 347.20 3.60 381.20 223.20 1.92 26.83 15652.31 AutomData 141.34 3.26 182.32 103.11 2.59 22.55 60771.31 Lowes 165.51 3.79 171.32 60.00 1.40 26.36 125081.87
BHPBilltn 37.73 -0.99 41.47 24.05 4.81 14.80 81665.07 SampoA 34.22 0.95 42.46 21.34 8.26 20.79 22562.2 Bridgestne 3338 39.00 4734 2861.5 5.03 8.91 22623.09 Ericsson 101.15 1.27 105.10 59.54 0.74 120.13 35903.22 Avago Tech 344.82 14.80 344.82 155.67 3.62 58.57 138681.53 Lyondell 68.15 2.48 98.91 33.71 6.63 8.10 22751.15
CmwBkAu 69.09 -1.17 91.05 53.44 6.01 15.77 89864.03 France (€) Canon 1821.5 -28.00 3117 1676 9.21 15.99 23070.6 H&M 140.50 2.20 214.35 98.13 3.42 46.95 23709.34 BakerHu 22.08 0.28 31.26 20.09 3.39 -1.35 11412.93 Marathon Ptl♦ 37.09 1.69 69.65 15.26 6.29 -3.36 24134.29
CSL 289.89 -10.11 342.75 227.26 0.88 47.61 96716.91 Airbus Grpe 71.44 2.36 139.40 48.12 2.29 -29.90 66644.76 CntJpRwy 15385 570.00 23455 12380 1.02 7.23 30096.48 Investor 552.20 2.40 568.60 370.10 2.36 5.84 29057.62 BankAm 26.30 1.32 35.72 17.95 2.82 9.98 227865.77 Marsh&M 114.00 0.53 119.88 74.34 2.11 30.38 57744.34
NatAusBk 17.93 0.23 30.00 13.20 8.29 17.92 43343.73 AirLiquide 139.60 1.45 143.70 94.86 1.64 31.09 78638.39 Denso 4373 122.00 5174 3021 3.36 47.44 32720.98 Nordea Bk 70.79 2.46 86.73 48.00 - 24.10 33121.64 Baxter♦ 86.03 2.94 95.19 69.10 1.13 44.55 43551.12 MasterCard 366.12 29.02 367.25 199.99 0.41 43.55 363387.2
Telstra 2.90 -0.13 3.94 2.87 3.32 17.41 25341.88 AXA 17.48 0.28 25.62 11.84 7.28 12.13 50288.35 EastJpRwy 6794 116.00 10830 5888 2.55 12.34 24383.2 SEB 87.26 2.76 104.90 59.80 - 11.50 21876.05 BB & T♦ 54.24 -0.48 55.66 40.68 3.42 14.79 41564.3 McDonald's 214.91 3.34 221.02 124.23 2.41 26.20 159915.07
Wesfarmers 48.26 -0.52 49.67 29.75 3.55 28.54 40204.8 BNP Parib 37.81 2.45 54.22 24.51 7.92 6.71 56216.25 Fanuc 18590 -415.00 22030 12020 1.29 46.42 35646.28 SvnskaHn 88.40 1.90 113.80 71.80 - 11.01 19861.52 BectonDick 242.80 -14.92 286.72 197.75 1.38 67.21 70380.08 McKesson 153.87 2.90 172.18 112.60 1.13 28.68 24956.14
Westpc 17.56 0.30 30.05 13.47 8.87 14.72 46598.61 ChristianDior 361.00 13.00 484.60 252.40 1.63 23.37 77530.95 FastRetail 61310 670.00 70180 39910 0.83 62.91 61757.52 Swedbank 148.94 6.00 162.70 99.14 - 13.62 19478.26 BerkshHat 327431 16305 347400 239440 - 51.05 215418.82 Medtronic 107.86 9.13 122.15 72.13 2.12 28.83 144887.47
Woolworths 39.77 -0.37 43.96 32.12 2.47 37.06 36908.75 Cred Agr 8.90 0.56 13.80 5.70 7.69 6.21 30532.79 Fuji Hvy Ind 2191.5 4.50 3184 1671.5 4.79 10.50 16007.3 Telia Co 33.53 0.02 44.90 30.29 6.22 46.45 15841.92 Biogen 281.46 4.39 374.99 215.78 - 7.66 44558.91 Merck 85.65 0.67 92.64 65.25 2.91 20.17 216629.5
Belgium (€) Danone 55.22 -0.72 82.38 50.26 3.34 19.72 45111.94 Hitachi 3530 -16.00 4693 2524 2.49 17.41 32445.14 Volvo 165.30 4.95 175.10 95.00 - 18.10 30191.63 BkNYMeln 37.56 1.83 51.60 26.40 3.46 7.56 33272.97 Metlife♦ 39.42 2.14 53.28 22.85 4.80 3.90 35780.05
AnBshInBv 49.60 2.57 89.71 29.03 3.41 13.58 99924.82 EDF 8.79 0.25 13.61 5.98 3.35 5.61 32458.63 HondaMtr 2711.5 56.50 3259 2120 4.33 9.94 46642.49 BlackRock 601.06 17.02 605.72 323.98 2.42 20.73 91651.77 Microsoft♦ 228.91 15.89 231.15 132.52 0.91 35.491732311.43
Switzerland (SFr)
KBC Grp 49.54 2.36 73.56 33.44 7.00 10.36 24543.35 Engie SA 11.14 -0.05 16.80 8.63 3.24 34.50 32263.58 JapanTob 1978 -31.50 2555 1796.5 8.17 10.66 37567.06 Boeing 175.80 8.30 391.00 89.00 3.78 -32.39 99230.09 Mnstr Bvrg 84.54 1.81 84.64 50.06 - 37.99 44586.1
ABB 23.27 -0.23 24.69 14.11 3.49 35.61 55804.45
EssilorLuxottica 113.45 4.45 145.00 86.76 1.71 48.97 59066.19 KDDI 3231 -89.00 3451 2658 3.73 11.18 70697.53 Booking Holdings 1945.25 165.88 2094 1107.29 - 23.21 79655.32 MondelezInt 58.31 0.84 59.96 41.19 2.11 23.20 83286.41
Brazil (R$) CredSuisse 10.08 0.05 13.80 6.18 1.42 5.93 27290.45
Hermes Intl 719.80 20.80 788.20 516.00 0.64 66.93 90411.27 Keyence 43080-1350.00 46910 28905 0.37 50.28 99495.63 BrisMySq 62.37 0.18 68.34 45.76 2.96 92.08 141123.96 Monsanto 127.95 - 127.97 114.19 1.64 23.62 56462.29
Ambev 12.75 -0.22 19.76 10.36 4.35 17.53 36785.87 Nestle 108.86 -1.14 113.20 83.37 2.11 26.95 346892.65
LOreal 277.20 3.30 297.20 196.00 1.32 43.84 184460.36 MitsbCp 2332.5 40.50 2960.5 2094.5 5.93 6.40 32908.7 CapOne 71.13 7.33 107.59 38.00 2.42 13.08 32480.5 MorganStly 52.89 1.79 57.57 27.20 2.74 10.23 83394.89
Bradesco 19.93 0.62 32.45 14.05 1.25 6.45 16207.34 Novartis 78.17 -0.35 96.38 65.09 3.80 25.52 213306.21
LVMH 396.35 10.90 439.05 278.70 1.23 44.27 238031.33 MitsubEst 1649 -1.00 2283 1291 2.10 14.47 21787.2 CardinalHlth 50.50 0.65 60.69 39.05 4.10 -3.31 14768.43 MylanNV 16.23 0.24 23.11 12.75 - 125.80 8390.05
Cielo 4.66 -0.28 9.07 3.23 5.02 9.31 2321.38 Richemont 60.12 1.46 82.28 44.64 3.27 34.25 34711.47
Orange 9.57 -0.26 15.38 8.84 6.94 9.88 30294.67 MitsubishiEle 1464 33.50 1658 1096.5 2.87 13.50 29851.41 Carnival 17.21 2.56 51.94 7.80 9.40 -3.85 10337.42 Netflix 523.89 31.58 575.37 252.28 - 82.02 231043.58
ItauHldFin 23.23 0.17 32.79 19.46 4.77 8.46 21119.44 Roche 313.50 -6.85 357.85 265.75 2.96 20.37 243616.2
PernodRic 145.50 1.95 179.50 112.25 2.04 27.76 45334.85 MitsuiFud 1872 35.50 3035 1538 2.46 9.49 17410.5 Caterpillar 143.63 5.20 150.55 87.50 2.96 14.11 77776.59 NextEraE 279.55 -2.86 289.41 174.80 2.05 35.79 136881.03
Petrobras♦ 23.11 0.03 33.65 10.50 3.06 -17.91 31536.73 Swiss Re 73.58 0.60 117.05 52.68 6.79 33.84 25839.45
Renault 24.15 1.11 58.10 12.77 13.96 -48.91 8495.4 MitUFJFin 440.60 13.90 603.00 380.00 5.95 17.90 56827.61 Celgene 108.24 - 110.70 58.59 - 12.71 77035.98 Nike 112.29 2.54 112.79 60.00 0.92 65.08 139786.6
Vale 61.10 -1.10 63.88 32.45 3.37 260.50 59203.03 Swisscom 504.20 -11.40 577.80 446.70 - 15.45 28888.99
Safran 102.25 5.01 152.30 51.10 1.69 19.13 51976.1 Mizuho Fin 144.20 2.20 173.10 108.40 5.07 47.87 34771.47 CharlesSch 36.28 1.83 51.65 28.00 2.04 13.18 46751.93 NorfolkS♦ 215.03 6.10 219.88 112.62 1.89 24.79 59225.72
Canada (C$) Syngent 453.40 1.40 471.20 402.50 - 28.99 43035.76
Sanofi 85.03 -1.31 95.82 67.65 3.77 9.43 127364.61 Murata Mfg 6284 -71.00 6920 4342 1.62 20.95 40327.33 Charter Comms 615.64 1.68 621.04 345.67 - 69.83 126144.13 Northrop 344.75 6.89 385.01 263.31 1.65 24.09 57474.67
BCE 57.05 -0.51 65.45 46.03 5.57 17.47 39371.1 UBS 11.16 0.22 13.28 7.00 3.16 9.30 47613.95
Sant Gbn 34.16 0.80 39.57 16.41 3.70 13.95 22137.82 NipponTT 2541.5 -62.00 2908 2153 3.92 10.48 94144.21 Chevron Corp♦ 85.63 0.55 125.27 51.60 6.10 38.29 159894.14 NXP 127.23 5.73 139.59 58.41 1.27-1965.38 35525.7
BkMontrl 82.83 7.35 104.75 55.76 5.03 11.09 40644.29 Zurich Fin 339.70 3.90 439.90 248.70 5.11 13.48 56532.82
Schneider 105.00 1.55 108.20 61.72 2.47 26.10 70843.09 Nissan Mt 433.00 17.00 721.70 311.20 2.43 -1.67 17355.03 Chubb 126.39 4.47 167.74 87.35 2.55 14.68 57048.13 Occid Pet 13.13 -0.03 48.85 9.00 25.79 -2.70 12212.77
BkNvaS 56.79 1.24 76.75 46.38 6.27 9.37 52500.29 Nomura 540.50 6.00 586.40 367.40 3.25 7.32 17931.44 Taiwan (NT$) Cigna 181.15 2.85 224.64 118.50 0.02 12.93 66518.39 Oracle 57.88 2.69 58.45 39.71 1.79 17.43 177615.31
SFR Group 34.50 0.00 34.56 21.87 - -23.02 17905.81
Brookfield 45.65 1.01 60.48 31.35 1.36 42.19 54823.95 Nppn Stl 1036.5 28.00 1786.5 798.10 5.08 5.13 9353.86 Chunghwa Telecom 109.00 0.00 123.50 103.00 4.29 24.69 28802.24 Cisco 42.20 -0.05 50.30 32.40 3.53 15.78 178180.9 Pepsico 139.94 3.48 147.20 101.42 3.00 26.47 193765.52
SocGen 14.15 0.87 32.23 11.35 15.41 7.80 14371.1
CanadPcR 391.90 -1.72 398.00 252.00 0.88 22.33 40532.2 NTTDCMo 3062 -25.00 3475 2642.5 4.11 16.23 93880.28 Formosa PetChem 83.20 1.60 107.00 66.10 6.02 43.32 26996.86 Citigroup 52.28 2.98 83.11 32.00 4.07 6.73 108839.9 Perrigo 52.82 0.42 63.86 40.01 1.56 49.06 7208.85
Total 33.30 0.94 50.93 21.12 7.98 12.20 105117.36
CanImp 104.12 6.17 115.96 67.52 5.50 11.47 35398.29 Panasonic 970.30 30.30 1264 691.70 3.24 9.57 22607.6 HonHaiPrc 77.50 0.40 101.50 65.70 5.39 10.64 36596.49 CME Grp 177.03 3.17 225.36 131.80 1.88 24.72 63487.16 Pfizer♦ 37.91 -0.97 40.97 27.88 4.14 12.59 210661.31
UnibailR 190.00 0.35 236.45 177.35 5.49 24.87 22215.04
CanNatRs 26.38 0.83 42.57 9.80 5.82 10.02 23775.79 Seven & I 3407 -48.00 4485 2937.5 3.05 15.86 28679.62 MediaTek 574.00 9.00 763.00 273.00 1.64 34.31 31082.61 Coca-Cola 49.83 2.55 60.13 36.27 3.51 21.79 214041.72 Phillips66♦ 61.79 0.82 119.92 40.04 6.26 85.78 26983.49
Vinci 81.50 1.12 107.35 54.76 3.16 14.75 59383.98
CanNatRy 139.30 -0.17 140.87 92.01 1.66 26.57 75623.07 ShnEtsuCh 12795 5.00 13945 8751 1.80 16.16 50626.28 TaiwanSem 435.00 20.00 466.50 235.50 3.00 26.40 384219.27 Cognizant♦ 67.69 1.97 71.48 40.01 1.30 19.74 36704.28 PhilMorris 80.74 2.68 90.17 56.01 6.25 16.02 125735.38
Vivendi 23.98 0.05 26.42 16.60 1.98 19.76 33824.6
Enbridge♦ 42.65 -0.59 57.32 33.06 7.54 43.71 65914.62 Softbank 6397 131.00 7077 2609.5 0.72 -12.97 126950.68 Thailand (THB) ColgtPlm 79.37 0.68 79.51 58.49 2.33 25.20 68051.85 PNCFin 112.35 5.90 161.79 79.41 4.21 9.74 47692.9
GtWesLif 27.17 1.22 35.60 18.88 6.11 12.49 19234.74 Germany (€)
Sony 8280 -74.00 8920 5297 0.57 17.12 99155.48 PTT Explor 36.75 0.50 47.75 23.60 5.56 16.98 33684.34 Comcast 44.56 1.49 47.74 31.71 2.07 16.45 203133.72 PPG Inds♦ 122.12 3.89 134.36 69.77 1.80 26.82 28817.56
ImpOil 22.12 0.69 36.99 10.27 3.94 9.93 12391.47 Allianz 185.72 6.50 232.60 117.10 4.80 10.68 92182.26
SumitomoF 3118 102.00 4145 2507.5 6.39 19.26 40684.27 United Arab Emirates (Dhs) ConocPhil♦ 38.38 0.22 67.13 20.84 4.06 11.16 41159.68 Praxair 164.50 -0.44 169.75 140.00 2.28 36.76 47306.22
Manulife 19.91 0.42 27.78 12.58 5.12 8.67 29467.88 BASF 51.32 1.76 72.17 37.36 6.55 43.91 56082.63
Takeda Ph 3974 -49.00 4562 2894.5 4.75 134.14 59489.73 Emirtestele 16.90 -0.08 17.12 11.04 6.63 15.52 40013.42 Corning♦ 32.66 0.19 33.56 17.44 2.70 89.35 24879.61 ProctGmbl 138.77 1.33 139.69 94.34 2.31 70.15 344994.25
Nutrien 48.75 -0.48 69.52 34.80 5.14 22.04 21173.58 Bayer 55.03 -1.30 78.34 44.86 5.04 20.56 64323.72
TokioMarine 4943 127.00 6317 4167 4.03 12.76 32951.77 United Kingdom (p) Costco 348.37 3.76 349.06 271.28 0.82 38.64 153813.62 Prudntl 69.64 2.23 97.24 38.62 6.33 9.01 27507.8
RylBkC 101.07 3.15 109.68 72.00 4.14 12.98 109782.91 BMW 59.61 2.80 77.06 36.60 5.82 8.06 42695.76
Toyota 7056 -28.00 8026 5771 3.27 9.22 218638.35 CrownCstl 163.79 0.62 180.00 114.18 3.05 86.07 68737.47 PublStor 213.44 6.89 266.76 155.37 4.03 27.01 37309.91
Suncor En 21.76 0.87 45.12 14.02 7.23 -5.96 25326.07 Continental 91.36 4.08 133.10 51.45 5.15 -12.20 21740.61 AscBrFd 2046 46.00 2730 1554 2.27 22.89 21593.13
Mexico (Mex$) CSX♦ 77.07 2.94 80.62 46.81 1.40 19.20 58962.6 Qualcomm 118.20 5.20 118.26 58.00 2.29 46.23 133361.03
ThmReut 100.98 -0.72 109.99 75.91 2.04 21.85 38264.77 Daimler 42.88 1.75 54.50 21.02 - -150.36 54581.47 AstraZen♦ 8340 -97.00 10120 5871 2.67 62.84 140804.71
AmerMvl 13.81 -0.10 16.82 12.33 2.59 33.12 28653.56 CVS 63.21 -0.73 77.03 52.04 3.40 10.65 82723.15 Raytheon 116.96 - 233.48 103.00 2.98 10.60 32566.46
TntoDom 65.78 3.58 77.72 49.01 4.56 11.57 90548.66 Deut Bank 8.28 0.49 10.37 4.45 - -6.40 20360.84 Aviva 282.70 1.60 439.40 205.70 10.70 4.48 15124.62
FEMSA UBD 128.78 1.20 188.80 126.85 2.33 10.72 12734.39 Danaher 205.64 -2.16 209.38 119.60 0.37 48.13 145882.83 Regen Pharm 602.61 -2.88 664.64 271.37 - 28.17 62998.91
TrnCan 62.22 -3.12 76.58 47.05 4.87 14.29 44628.77 Deut Tlkm 14.98 0.14 16.75 10.41 - 18.42 84864.19 Barclays 111.96 3.96 192.99 73.04 2.68 16.93 25468.35
WalMrtMex 54.40 -2.36 62.71 47.76 1.56 28.97 43462.83 Deere 209.90 10.40 212.45 106.14 1.53 22.54 65669.03 S&P Global♦ 366.83 4.82 367.54 186.06 0.73 32.05 88406.03
ValeantPh 30.80 0.74 36.02 14.01 - -4.10 8158.48 DeutsPost♦ 38.24 -0.01 40.12 19.11 2.98 22.29 56258.35 BP 264.20 -9.15 537.00 222.90 12.48 -20.01 70196.97
Delphi 17.70 0.45 18.09 5.39 - -25.33 1528.39 Salesforce 271.10 63.57 278.28 115.29 - -1026.04 244261.1
E.ON 9.93 0.13 11.56 7.60 4.11 43.56 31193.76 Netherlands (€) BrAmTob 2532.5 6.50 3507 34.85 8.02 10.17 62945.35
China (HK$) Delta 31.99 4.72 62.48 17.51 4.07 -5.09 20405.04 Schlmbrg 19.42 0.84 41.14 11.87 9.03 -1.14 26956.94
Fresenius Med♦ 70.90 -2.00 81.10 53.50 1.64 17.74 25681.25 Altice 3.82 -0.09 6.86 2.26 - 20.66 4800.2 BSkyB 1727.5 0.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 2.68 -0.11 3.50 2.67 7.64 3.80 10629.18 Devon Energy 11.10 0.66 28.42 4.70 3.49 -2.72 4249.08 Sempra Energy 122.32 -3.16 161.87 88.00 3.47 17.11 35382.24
Fresenius SE 39.40 0.77 51.54 24.25 2.01 11.72 21193.12 ASML Hld 316.70 3.10 355.50 177.52 0.77 45.07 160392.19 BT 104.65 2.85 212.25 94.68 14.72 4.80 13841.94
Bk China 2.56 -0.04 3.39 2.56 8.51 3.57 27621.27 DiscFinServ♦ 54.25 4.68 87.43 23.25 3.50 15.86 16623.35 Shrwin-Will♦ 675.91 0.09 681.60 325.43 0.79 32.85 61541.37
HenkelKgaA 76.00 1.60 90.30 54.65 2.29 16.71 23491.92 Heineken 78.42 1.34 105.00 68.82 2.00 21.91 53743.25 Compass 1220.5 57.00 2150 20.62 3.28 18.81 26758.31
BkofComm 4.18 -0.05 5.68 4.18 8.44 3.67 18882.95 Disney 135.54 8.10 153.41 79.07 1.40 55.05 244929.37 SimonProp 69.84 5.32 163.61 42.25 12.85 10.06 21363.16
Linde 211.80 5.60 216.00 130.45 1.53 54.76 132390.13 ING 7.07 0.49 11.26 4.23 9.53 8.07 32825.46 Diageo 2509.5 -80.50 3633.5 2050.6 2.73 19.56 84219.12
BOE Tech 0.66 0.09 0.80 0.47 - -10.00 16.94 DominRes 78.02 -0.62 90.89 57.79 5.09 33.91 65547.4 SouthCpr 48.21 2.22 48.52 23.43 3.57 26.38 37269.86
MuenchRkv 245.30 9.00 284.20 141.10 3.74 15.28 40888.86 Unilever 48.98 -0.18 57.77 38.42 3.41 21.47 85124.94 GlaxoSmh♦ 1472 -43.20 1857 1328.19 5.43 11.08 96504.41
Ch Coms Cons 4.49 -0.16 6.77 4.32 6.20 3.64 2564.98 DowDupont♦ 30.52 -0.56 48.38 30.06 4.40 -19.00 68559.76 Starbucks 85.00 7.93 98.14 50.02 2.02 70.34 99365
SAP 139.76 3.96 143.20 82.13 1.15 35.92 204282.97 Norway (Kr) Glencore 169.18 0.84 264.12 109.76 8.87 -74.69 32532.7
Ch Evrbrght 2.89 -0.11 3.97 2.65 6.55 3.97 4727.77 DukeEner♦ 79.71 -1.29 103.79 62.13 5.07 14.62 58621.3 StateSt 70.11 2.56 85.89 42.10 3.20 10.40 24705.59
Siemens 118.22 2.28 120.66 58.77 3.27 20.77 119559.06 DNB 143.70 1.70 178.10 94.26 - 11.59 25767.4 HSBC 330.15 2.00 633.50 319.45 7.26 22.74 88245.45
Ch Rail Cons 6.15 -0.24 9.99 5.91 4.01 4.17 1647.58 Eaton 103.51 2.92 105.78 56.42 3.00 25.79 41414.35 Stryker 198.21 9.43 226.30 124.54 1.19 32.40 74294.7
Volkswgn 152.20 4.80 185.00 99.16 3.13 7.11 53436.93 Equinor 142.75 0.20 187.20 95.20 6.97 -21.45 52766.62 Imperial Brands♦ 1253 0.00 2256 1238.5 16.49 13.88 15931
Ch Rail Gp 4.01 -0.07 5.34 3.45 3.76 3.66 2176.9 eBay 54.27 -3.94 61.06 26.02 1.19 18.36 37982.55 Sychrony Fin 25.78 1.87 38.18 12.15 3.68 7.31 15049.2
Hong Kong (HK$) Telenor 144.80 -1.90 189.65 130.75 5.23 41.68 22993.35 LlydsBkg 28.35 0.25 73.66 25.43 3.95 11.81 27237.49
ChConstBk 5.65 -0.10 6.85 5.63 6.39 4.54 175264.23 Ecolab 200.50 5.65 231.36 124.60 1.00 35.25 57219.65 T-MobileUS 116.26 1.25 118.00 63.50 - 26.63 143907.67
AIA 80.65 8.50 87.80 60.05 1.46 18.78 125820.41 Natl Grid 843.20 -33.40 1073.8 8.90 5.67 23.04 37730.24
China Vanke 24.85 -0.60 34.75 21.65 4.96 6.08 6071.3 Qatar (QR) Emerson 70.65 2.79 78.38 37.75 3.01 18.78 42219.87 Target♦ 150.85 -2.78 156.10 90.17 1.84 26.58 75427.34
BOC Hold 22.30 0.20 28.90 20.30 6.59 7.32 30421.17 Natwest Group 112.80 0.95 265.00 100.34 1.77 5.01 17993.74
ChinaCitic 3.33 -0.05 4.79 3.30 8.12 3.15 6394.27 QatarNtBk 18.36 -0.14 21.25 15.71 3.49 12.74 46565.73 EOG Res 46.21 2.82 89.54 27.00 2.52 11.84 26905.47 TE Connect 97.94 4.40 101.00 48.62 2.02 44.01 32323.97
Ch OSLnd&Inv 22.85 -0.25 31.00 21.80 4.16 5.37 32300.61 Prudential 1221.5 6.50 1509 682.80 3.95 21.55 42130.92
ChinaLife 18.92 0.12 22.90 11.64 0.95 8.24 18165.4 Russia (RUB) EquityResTP 57.03 2.34 89.55 49.62 4.35 16.84 21227.14 Tesla Mtrs 2213.4 163.42 2318.49 212.31 - 991.07 412493.04
ChngKng 41.90 -0.15 57.85 33.40 4.66 5.31 19967.41 ReckittB♦ 7510 -28.00 8191.3 5130 2.32 -19.42 70502.16
ChinaMBank 38.40 -1.15 43.40 29.80 2.88 8.79 22746.31 Gzprm neft 185.71 1.03 272.68 158.17 8.49 8.05 58976.64 Exelon♦ 37.04 0.52 50.54 29.28 4.27 12.86 36095.62 TexasInstr 143.49 3.16 143.59 93.09 2.61 24.95 131428.77
Citic Ltd 7.30 -0.12 10.74 6.88 6.03 3.94 27400.12 RELX♦ 1702.5 -25.50 2109 1382.86 2.68 25.95 43842.79
ChinaMob 55.80 -1.80 70.00 45.20 5.25 9.62 147417.74 Lukoil 4745.5 125.50 6810 3663 6.94 7.65 44107.51 ExpScripts 92.33 - 101.73 66.93 - 11.10 52061.19 TheTrvelers 115.89 4.06 153.65 76.99 3.08 15.28 29342.33
Citic Secs 18.46 -0.06 21.45 12.60 2.23 16.03 5426.61 RioTinto♦ 4635 -51.00 5152 2954 6.60 13.00 82872.86
ChinaPcIns 22.50 -1.50 33.25 17.90 5.24 5.65 8057 MmcNrlskNckl 20150 432.00 23656 13352 12.39 7.95 42774.79 ExxonMb♦ 40.69 -0.32 75.18 30.11 9.19 14.17 172046.81 ThrmoFshr 424.48 -4.09 432.38 250.21 0.20 43.29 167919.79
CK Hutchison 50.65 0.10 76.00 45.05 6.26 4.90 25201.42 RollsRoyce 241.10 -17.20 858.60 212.10 4.85 -3.49 5977.73
ChMinsheng 4.79 -0.11 6.06 4.79 8.50 3.29 5142.28 Novatek 973.20 15.40 1382.2 682.80 3.47 6.59 39639.58 Facebook 293.66 26.65 304.67 137.10 - 37.47 706041.48 TimeWrnr 98.77 - 103.89 85.88 1.54 15.09 77269.69
CNOOC 8.75 -0.25 14.04 6.24 8.34 5.70 50406.53 RylDShlA 1106.8 -9.00 2417 946.10 11.32 -9.24 67829.73
ChMrchSecs 21.76 0.10 26.04 13.10 1.05 27.40 23522.49 Rosneft 324.00 10.10 489.90 229.80 7.81 8.59 46063.6 Fedex 221.90 11.41 223.66 88.69 1.26 42.00 58137.23 TJX Cos 55.09 3.41 64.95 32.72 1.62 20.40 65991.05
HangSeng 123.50 2.00 179.70 114.00 6.32 9.66 30464.97 Shire# 4690 0.00 4780 2944 0.58 11.63 56567.13
Chna Utd Coms 5.22 -0.09 6.96 4.82 1.06 32.57 16345.9 Sberbank 188.91 -2.89 270.80 172.15 - 5.33 54705 FordMtr 6.94 0.28 9.65 3.96 9.30 -8.28 27118.31 UnionPac 195.13 3.56 195.80 105.08 2.15 22.47 132461.82
HK Exc&Clr 380.60 9.60 388.00 206.00 1.79 50.90 62260.66 StandCh 392.40 0.50 740.80 368.40 1.44 10.92 17245.76
ChShenEgy 12.58 0.00 17.18 11.94 8.48 5.26 5516.44 Surgutneftegas 35.13 0.77 54.89 24.06 2.07 11.47 16833.73 Franklin 21.33 0.34 30.21 14.91 4.05 9.64 10565.96 UPS B 162.36 3.33 162.70 82.00 2.58 30.57 114801.71
MTR 40.60 0.60 48.10 36.20 2.96 20.91 32364.3 Tesco 218.70 -8.80 332.67 203.70 3.09 22.92 23871.21
ChShpbldng 4.88 -0.17 6.22 3.98 0.194846.91 12995.47 GenDyn 152.27 2.46 193.76 100.55 3.00 12.53 43691.2 USBancorp 37.20 1.99 61.11 28.36 4.71 8.94 56036.69
SandsCh 33.95 1.85 45.45 25.15 5.83 17.32 35434.45 Saudi Arabia (SR) Vodafone 111.44 -2.82 169.46 92.76 6.88 -40.23 39626.87
ChStConEng 5.20 0.03 6.20 4.76 3.36 5.37 31244.24 GenElectric 6.61 0.30 13.26 5.48 0.65 16.12 57859.24 UtdHlthcre 314.37 0.23 324.57 187.72 1.48 20.46 298757.05
SHK Props 102.90 4.20 124.00 87.60 4.82 7.48 38473.56 AlRajhiBnk 65.80 0.90 66.90 51.00 4.87 15.61 43862 WPP 645.60 43.20 1085.5 450.00 9.29 12.96 10896.8
ChUncHK 5.72 -0.49 8.76 3.84 2.68 13.81 22582.64 GenMills 63.39 -0.63 66.14 46.59 3.33 16.51 38726.09 UtdTech♦ 86.01 -18.63 158.44 69.02 3.12 60.04 74498.84
Tencent 540.50 32.50 564.00 312.20 0.19 46.96 666369.95 Natnlcombnk 37.55 -1.05 50.70 30.50 9.61 9.58 30036.81 United States of America ($)
CNNC Intl 4.61 0.08 5.55 4.02 2.71 16.84 10451.12 GenMotors 30.02 1.46 39.78 14.33 4.10 26.50 42961.52 ValeroEngy♦ 54.89 2.27 101.99 31.00 7.21 53.18 22381.8
SaudiBasic 88.30 -0.10 101.80 61.90 5.29 213.21 70632.48 21stC Fox A 27.82 1.82 39.74 19.81 2.67 12.03 9559.43
CSR 3.55 -0.03 6.10 3.14 4.98 8.39 2002.17 India (Rs) GileadSci 65.26 -1.24 85.97 60.89 4.23 15.56 81818.05 Verizon 59.26 0.27 62.22 48.84 4.48 11.89 245221.07
SaudiTelec 96.40 -0.20 110.00 72.30 4.43 16.88 51407.84 3M 165.66 3.95 182.55 114.04 3.79 17.43 95423.38
Daqin 6.60 0.01 8.26 6.41 7.57 7.73 14291 Bhartiartl 523.45 3.20 612.00 325.50 - -5.77 38909.47 GoldmSchs 207.71 5.28 250.46 130.85 2.38 10.48 71468.06 VertexPharm 269.96 -1.32 306.08 165.23 - 43.52 70315.76
Gree Elec Apl 0.10 0.00 0.37 0.01 - -0.02 4.27 HDFC Bk 1114.5 28.85 1305.5 738.75 0.70 22.65 83506.98 Singapore (S$) AbbottLb 110.79 8.39 114.20 61.61 1.32 59.70 196157.02 Halliburton 16.27 0.53 25.47 4.25 3.88 -3.26 14292.71 VF Cp 67.94 6.28 100.25 45.07 3.01 40.25 26472.73
GuosenSec 14.37 -0.48 16.14 10.38 0.87 27.62 17162.19 Hind Unilevr 2151.95 -50.10 2614.3 1757.3 1.22 66.17 68839.5 DBS 20.76 0.04 26.80 16.65 7.41 12.04 38786.66 Abbvie 94.17 -0.69 101.28 62.55 5.01 15.50 166194.35 HCA Hold 135.99 3.48 151.97 58.38 0.98 13.01 45969.15 ViacomCBS 27.99 1.48 44.94 10.10 3.23 8.77 15779.96
HaitongSecs 7.05 -0.23 9.58 5.79 2.50 8.57 3101.48 HsngDevFin 1883.25 79.20 2499.9 1473.45 1.15 14.48 45975.54 JardnMt US$♦ 42.02 2.37 59.68 37.37 4.12 5.52 30636.13 Accenture 242.99 5.50 243.22 137.15 1.07 29.50 161273.63 Hew-Pack 19.85 1.62 23.93 12.54 3.58 9.21 28384.64 Visa Inc♦ 215.71 11.58 216.16 133.93 0.55 36.09 363688.6
Hngzh HikVDT 37.96 0.15 40.50 27.00 1.93 26.04 44757.56 ICICI Bk 409.70 38.55 552.20 268.30 0.25 27.40 38491.4 JardnStr US$♦ 20.50 0.63 33.50 17.81 1.69 5.28 22720.31 Adobe 516.44 43.22 533.70 255.13 - 63.18 247718.32 HiltonWwde 91.73 4.38 115.48 44.30 0.70 33.33 25437.59 Walgreen♦ 38.76 -0.70 64.50 36.65 5.09 42.29 33586.86
Hunng Pwr♦ 3.27 -0.54 4.39 2.24 3.53 293.05 1983.19 Infosys 935.25 -13.55 986.45 509.25 2.01 21.47 54276.97 OCBC 8.71 -0.12 11.23 7.80 5.66 14.63 28232.66 AEP♦ 78.35 -0.73 104.97 65.14 3.76 19.59 38873.78 HomeDep 286.29 3.06 292.95 140.63 2.06 26.93 308178.45 WalMartSto 140.30 8.67 141.07 102.00 2.01 25.24 397568.38
IM Baotou Stl 1.18 0.00 1.56 1.04 0.62-252.78 5444.05 ITC♦ 195.55 -1.25 266.30 134.60 3.04 15.52 32784.72 SingTel 2.30 -0.02 3.48 2.19 7.81 34.16 27634.98 Aetna - - - - - - - Honywell 168.38 10.88 184.06 101.08 2.26 19.20 118166.25 WellsFargo♦ 24.69 1.05 54.75 22.00 8.62 8.03 101723.96
In&CmBkCh 4.50 -0.13 6.11 4.50 6.55 4.40 50394.36 L&T 981.85 -12.30 1551 661.00 2.99 16.80 18781.58 UOB 19.66 -0.22 27.02 17.28 5.43 7.61 24150.99 Aflac♦ 37.13 0.71 55.07 23.07 3.20 8.60 26470.44 HumanaInc 408.04 -10.75 425.46 208.25 0.60 19.46 53980.66 Williams Cos 21.07 -0.34 25.29 8.41 7.86 163.31 25569.68
IndstrlBk 15.92 0.03 20.42 14.93 4.51 4.84 45482.08 OilNatGas 80.35 -0.70 149.65 50.00 9.01 4.57 13772.64 South Africa (R) AirProd 296.76 10.32 299.82 167.43 1.82 31.91 65552.62 IBM 125.07 1.91 158.75 90.56 5.60 13.14 111384.68 Yum!Brnds 97.45 1.35 119.59 54.95 1.91 25.32 29371.39
Kweichow 1757 93.00 1787 960.10 1.01 48.06 321464.03 RelianceIn 2116.15 34.30 2196 867.40 0.32 32.26 194968.57 Firstrand 39.73 0.71 69.90 31.13 8.77 6.54 13395.29 Alexion 106.99 6.48 121.50 72.67 - 9.40 23449.32 IllinoisTool 200.66 5.52 200.81 115.94 2.26 24.24 63441.32 Venezuela (VEF)
Midea 0.70 -0.04 1.23 0.58 - -2.35 19.42 SBI NewA 224.85 26.45 351.00 149.45 - 9.73 27341.53 MTN Grp 62.90 -2.80 105.34 26.25 9.90 10.70 7123.67 Allergan 193.02 - 202.22 114.27 1.54 -25.19 63659.11 Illumina 354.00 0.93 404.20 196.78 - 51.93 51684 Bco de Vnzla 13000 1800 14000 700.00 518.36 - 151.76
New Ch Life Ins 31.90 -3.10 37.30 20.45 2.84 5.35 4256.35 SunPhrmInds♦ 555.75 23.40 564.75 312.00 0.51 32.22 18168.17 Naspers N 3139.72 107.62 3640 1843.8 0.27 25.11 82186.55 Allstate♦ 94.30 -0.19 125.92 64.13 2.33 7.38 29451.41 Intcntl Exch 105.56 1.36 105.99 63.51 1.15 26.25 57348.29 Bco Provncl 765000 30000 775000 69000 - 51.17 260.88
PetroChina 2.67 -0.01 4.46 2.20 5.87 21.64 7268.57 Tata Cons 2238.55 -10.05 2358 1506.05 1.55 25.65 114449.8 Alphabet 1639.43 63.86 1652.79 1008.87 - 30.79 492601.43 Intel♦ 50.43 1.15 69.29 43.63 2.76 8.62 214478.79
South Korea (KRW) Mrcntl Srvcs 799000 -999.00 800000 65000 0.01 17.33 153.84
PingAnIns 83.30 -0.35 101.00 69.00 2.67 9.73 80046.33 Altria 43.93 0.47 51.78 30.95 8.13 -86.94 81639.39 Intuit 346.11 23.88 360.00 187.68 0.58 55.38 90255.57
Indonesia (Rp) HyundMobis 226000 21500 268500 126000 1.85 9.45 18137.76
PngAnBnk 15.13 0.54 17.60 11.91 1.00 9.76 42763.29 Amazon 3401.8 117.08 3453 1626.03 - 151.181703926.41 John&John♦ 153.64 0.88 157.00 109.16 2.71 25.03 404507
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 20700 750.00 29500 15550 - -8.28 11219.73 Closing prices and highs & lows are in traded currency (with variations for that
Pwr Cons Corp 4.13 -0.04 4.98 3.40 2.46 9.03 6703.58 AmerAir 13.59 1.43 31.67 8.25 2.38 -1.54 6911.35 JohnsonCn 41.30 0.71 44.65 22.78 2.71 28.04 30729.16
Israel (ILS) SK Hynix 77800 6000 106000 65800 1.34 32.65 47820.49 country indicated by stock), market capitalisation is in USD. Highs & lows are
SaicMtr 18.94 0.78 26.32 16.90 6.92 11.51 32229.53 AmerExpr 102.54 6.39 138.13 67.00 1.81 19.68 82561.22 JPMrgnCh 102.77 5.45 141.10 76.91 3.66 10.80 313202.31
TevaPha 32.34 -2.49 46.45 23.05 - -12.01 10498.41 SmsungEl 55400 0.00 62800 42300 2.67 16.90 279235.03 based on intraday trading over a rolling 52 week period.
ShenwanHong 0.05 0.00 0.13 0.03 - -0.17 50.89 AmerIntGrp 29.37 1.10 58.66 16.07 4.69 5.55 25300.31 Kimb-Clark 156.50 -0.80 160.16 110.66 2.90 19.47 53373.88
Italy (€) Spain (€) AmerTower 249.59 0.25 272.20 174.32 1.63 54.24 110710.1 ♦ ex-dividend
ShgPdgBk 10.46 -0.01 13.33 9.82 3.48 5.26 42815.31 KinderM 14.18 0.07 22.58 9.42 7.70 187.76 32096.94 ■ ex-capital redistribution
Enel 7.64 -0.09 8.61 5.15 3.89 36.69 92415.53 BBVA 2.60 0.17 5.34 2.39 16.02 131.10 20626.91 Amgen♦ 253.12 15.48 264.97 177.05 2.60 19.15 148250.81
Sinopec Corp 3.49 0.00 5.15 3.20 13.07 15.31 11488.96 Kraft Heinz♦ 34.88 0.32 36.37 19.99 4.93 20.80 42643.54 # price at time of suspension
ENI 7.96 0.09 14.60 6.26 10.46 -7.44 34427.22 BcoSantdr 1.96 0.13 4.04 1.77 8.34 7.30 38792.99 Anadarko 72.77 - 76.23 40.40 1.50 -63.37 36563.54
Sinopec Oil 1.88 -0.02 2.61 1.67 - 64.59 3297.52 Kroger♦ 35.30 -0.61 36.89 23.02 1.86 12.80 27460.78
Generali 13.24 0.30 19.63 10.20 6.45 10.11 24827.39 CaixaBnk 1.90 -0.01 2.94 1.50 5.22 10.31 13518.17 Anthem 277.28 -7.35 309.10 171.03 1.36 11.15 69737.71
Denmark (kr) Iberdrola 10.70 -0.12 11.52 7.76 1.60 18.50 80841.48 L Brands 29.67 -0.30 31.33 8.00 4.27 -11.01 8204.74
IntSPaolo 1.83 0.01 2.63 1.31 10.70 7.51 41829.59 Aon Cp 200.11 6.47 238.19 143.93 0.95 26.74 46355.55 LasVegasSd 52.16 3.64 74.29 33.30 4.82 109.88 39839.98
DanskeBk 98.28 -0.38 123.60 68.04 - 9.13 13544.78 Inditex 24.05 0.88 32.28 18.51 0.89 30.86 89181.75
Unicred 8.45 0.32 14.44 6.01 3.17 -10.02 22445.91 Apple 499.23 1.75 515.14 203.32 0.66 36.312134524.76 LibertyGbl 23.68 1.67 28.48 15.24 - -95.76 4316.2
MollerMrsk 9586 154.00 10555 4976 1.55 37.51 14453.5 Repsol 6.90 0.29 15.67 5.92 13.52 -1.41 13355.78 ArcherDan 44.90 1.31 47.20 28.92 3.38 15.35 24948.55 Lilly (E)♦ 147.34 -1.92 170.75 101.36 1.95 22.88 140926.34
NovoB 413.40 -4.75 456.30 328.70 2.00 24.49 119776.2 Telefonica 3.39 -0.09 7.26 3.33 11.81-166.42 21491.77

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Salesforce 271.10 276.32 -5.22 -1.89 63.57 30.6 42.61 Hunng Pwr 3.27 3.38 -0.11 -3.25 -0.54 -14.2 -0.60 Aug 28 date Coupon S* M* F* price yield yield yield US Aug 28 date Coupon S* M* F* price yield yield yield US
Carnival 17.21 16.12 1.09 6.76 2.56 17.5 20.45 New Ch Life Ins 31.90 31.65 0.25 0.79 -3.10 -8.9 5.80 High Yield US$ US$
Delta 31.99 30.82 1.17 3.80 4.72 17.3 23.25 ShenwanHong 0.05 0.05 0.00 0.00 0.00 -8.2 0.00 HCA Inc. 04/24 8.36 BB- Ba2 BB 113.75 4.24 0.00 0.12 - FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa1 A- 129.00 2.54 -0.01 -0.05 -
BOE Tech 0.66 0.57 0.09 15.79 0.09 15.8 13.33 ChUncHK 5.72 5.80 -0.08 -1.38 -0.49 -7.9 34.89 High Yield Euro The Goldman Sachs Group, Inc. 02/28 5.00 BBB+ A3 A 117.21 2.47 0.00 0.32 -
SBI NewA 224.85 215.65 9.20 4.27 26.45 13.3 17.14 eBay 54.27 56.31 -2.04 -3.62 -3.94 -6.8 -3.46 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 NationsBank Corp. 03/28 6.80 BBB+ Baa1 A- 127.69 2.72 -0.01 0.06 -
AIA 80.65 77.50 3.15 4.06 8.50 11.8 11.26 RollsRoyce 241.10 250.00 -8.90 -3.56 -17.20 -6.7 -99.07 GTE LLC 04/28 6.94 BBB+ Baa2 A- 128.27 2.80 0.00 -0.11 -
AmerAir 13.59 13.28 0.31 2.33 1.43 11.8 15.38 ChinaPcIns 22.50 22.80 -0.30 -1.32 -1.50 -6.3 -1.32 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 130.43 2.62 -0.07 -0.22 -
CapOne 71.13 69.61 1.52 2.18 7.33 11.5 10.97 BectonDick 242.80 246.57 -3.77 -1.53 -14.92 -5.8 -11.12 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Barclays Bank plc 01/29 4.50 A A1 A+ 96.46 5.02 0.00 0.02 -
HyundMobis 226000.00 217000.00 9000.00 4.15 21500.00 10.5 11.06 Midea 0.70 0.69 0.01 1.45 -0.04 -5.4 -5.48 Colombia 01/26 4.50 - Baa2 BBB- 110.38 2.35 0.02 0.06 2.06
Brazil 04/26 6.00 - Ba2 BB- 116.75 2.75 0.00 -0.09 2.46 Euro
ICICI Bk 409.70 392.20 17.50 4.46 38.55 10.4 7.31 Cielo 4.68 4.65 0.03 0.65 -0.26 -5.3 -8.59 Electricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -
Starbucks 85.00 83.41 1.59 1.91 7.93 10.3 14.01 TrnCan 62.22 62.68 -0.46 -0.73 -3.12 -4.8 3.30 Poland 04/26 3.25 - A2 A- 112.85 0.89 0.00 -0.05 0.60
Turkey 04/26 4.25 - B1 BB- 90.25 6.34 -0.11 0.34 6.05 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -
VF Cp 67.94 66.62 1.32 1.98 6.28 10.2 11.73 Telstra 2.90 2.95 -0.05 -1.69 -0.13 -4.3 -13.30 The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 124.42 0.68 0.00 -0.11 -
Facebook 293.66 293.22 0.44 0.15 26.65 10.0 27.59 MTN Grp 62.90 63.83 -0.93 -1.46 -2.80 -4.3 0.33 Mexico 05/26 11.50 - Baa1 BBB- 151.00 2.00 -0.01 -0.69 1.71
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Finland 04/31 0.75 AA+ Aa1 AA+ 111.08 -0.27 0.00 -0.05 -0.87
BkMontrl 82.83 83.67 -0.84 -1.00 7.35 9.7 11.99 AgricBkCh 2.68 2.69 -0.01 -0.37 -0.11 -3.9 -4.29
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
DiscFinServ 54.25 53.71 0.54 1.01 4.68 9.4 7.78 Tesco 218.70 221.90 -3.20 -1.44 -8.80 -3.9 -98.99
Russia 06/28 12.75 - Ba1 BBB 172.48 2.49 -0.03 -0.03 - Mexico 06/26 1.09 - Baa1 BBB- 95.75 1.87 0.00 0.05 1.57
Booking Holdings 1945.25 1893.50 51.75 2.73 165.88 9.3 14.95 Natl Grid 843.20 852.80 -9.60 -1.13 -33.40 -3.8 -99.07
Medtronic 107.86 106.86 1.00 0.94 9.13 9.2 11.98 Ch Rail Cons 6.15 6.19 -0.04 -0.65 -0.24 -3.8 -0.16 Brazil 02/47 5.63 - Ba2 BB- 110.25 4.93 -0.02 0.03 - £ Sterling
Adobe 516.44 510.32 6.12 1.20 43.22 9.1 19.14 WalMrtMex 54.67 54.84 -0.17 -0.31 -2.09 -3.7 0.02 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -
Hew-Pack 19.85 18.70 1.15 6.15 1.62 8.9 18.08 Ch Evrbrght 2.89 2.92 -0.03 -1.03 -0.11 -3.7 -1.37 Brazil 04/21 2.88 BB- Ba2 BB- 103.09 0.05 0.01 -0.09 -1.19 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
MasterCard 366.12 356.00 10.12 2.84 29.02 8.6 19.51 AstellasPh 1652.50 1696.50 -44.00 -2.59 -60.00 -3.5 -5.06 Mexico 02/22 1.88 - Baa1 BBB- 102.30 0.32 -0.01 -0.36 0.15 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Aug 28 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Aug 28 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 1.50-1.75 27-09-2018 1.00 1.75-2.00 1.25-1.50 Index change change change 1 month 1 year VIX 22.96 -1.51 24.47 85.42 11.42 Aug 28 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 27-09-2018 3.25 5.00 4.25 Markit IBoxx VXD 23.84 -0.59 24.43 71.05 2.47 - - - - - - - - -
US Discount 2.25 27-09-2018 0.75 2.50 1.75 ABF Pan-Asia unhedged 215.14 -0.11 0.26 3.64 0.73 6.88 VXN 32.80 -0.52 33.32 84.67 13.58 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 391.57 0.31 -0.80 4.04 -0.77 3.60 VDAX 26.41 1.82 24.59 93.30 - - - - - - - - - -
UK Repo 0.10 02-08-2018 0.10 0.50 0.25 Corporates($) 331.31 -0.51 -1.57 6.33 -1.57 6.33 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 3.75pc '20 100.13 -4.16 352.17 41500.00 10300.00 -966.67 102.18 100.00 24.87
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 238.75 0.05 0.19 0.46 0.18 -0.85 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 100.60 -0.04 33.33 -20.00 100.00 -110.00 101.54 100.60 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 257.10 -0.02 -0.62 2.46 -0.55 -1.20 Tr 4pc '22 106.14 -0.05 400.00 25.00 -37.50 -116.13 109.33 106.12 38.77
Gilts( £) 371.40 0.53 -3.21 6.59 -3.21 2.18 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 122.73 -0.03 -400.00 -50.00 -78.57 -111.11 126.04 121.74 35.84
INTEREST RATES: MARKET Global Inflation-Lkd 299.87 -0.43 -1.15 7.27 -0.26 5.75 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 107.89 0.10 -28.57 150.00 -242.86 -65.52 109.23 103.96 33.47
Over Change One Three Six One Markit iBoxx £ Non-Gilts 380.74 0.30 -0.96 3.92 -0.91 3.06 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 143.65 0.44 -6.38 29.41 120.00 -21.43 148.26 137.84 38.71
Aug 28 (Libor: Aug 27) night Day Week Month month month month year Overall ($) 281.98 -0.44 -1.46 7.62 -1.46 7.62 Australia 11/22 2.25 104.39 0.27 -0.01 0.00 -0.01 -0.43 Tr 4.25pc '36 153.09 0.65 -5.80 20.37 62.50 -13.33 160.46 145.12 30.41
US$ Libor 0.08175 0.000 -0.003 -0.014 0.15638 0.25588 0.30725 0.44588 Overall( £) 370.12 0.46 -2.58 5.59 -2.56 2.30 05/32 1.25 102.26 1.04 -0.04 0.06 0.04 - Tr 4.5pc '42 174.35 0.83 -5.68 13.70 48.21 -10.75 186.37 162.55 27.21
Euro Libor -0.58200 -0.001 0.000 -0.001 -0.54486 -0.51300 -0.46543 -0.36086 Overall(€) 248.49 -0.01 -0.44 1.83 -0.41 -1.17 Austria - - - - - - - Tr 3.75pc '52 180.13 0.87 -5.43 14.47 47.46 -7.45 198.36 164.59 24.10
£ Libor 0.04925 -0.002 0.000 0.000 0.05438 0.06563 0.12000 0.24863 Treasuries ($) 263.48 -0.44 -1.53 8.79 -1.53 8.79 02/47 1.50 130.96 0.28 0.03 0.13 0.11 0.13 Tr 4pc '60 205.83 0.84 -5.62 15.07 52.73 -6.67 231.12 186.33 24.12
Swiss Fr Libor 0.000 -0.78200 -0.71960 -0.66660 -0.52280 FTSE Belgium 09/22 1.00 103.16 -0.56 -0.01 0.02 0.03 0.20 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.003 -0.07267 -0.05233 -0.04033 0.10817 Sterling Corporate (£) - - - - - - Canada 11/22 2.00 103.90 0.23 0.01 0.02 -0.02 -1.28
Euro Euribor
Sterling CDs
-0.005
-
-0.52000
-
-0.47700
-
-0.43900
-
-0.36400 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 06/30 1.25 105.67 0.65 0.04 0.11 0.14 -0.50 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 600.98 0.15 - - -7.04 46.95 Denmark 11/22 0.25 101.81 -0.56 -0.02 0.04 0.01 0.33
US$ CDs - - - - Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 11/29 0.50 107.36 -0.29 0.00 0.08 0.06 0.36 Price Indices Day's Total Return Return
Euro CDs - - - - Fixed Coupon Aug 28 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series Finland 09/22 1.63 104.59 -0.60 -0.01 0.03 0.00 0.20
09/29 0.50 107.08 -0.27 0.00 0.07 0.04 0.15 1 Up to 5 Years 89.65 0.10 2489.27 -0.18 0.97 -0.05
Short 7 Days One Three Six One Index change change change high low 2 5 - 10 Years 187.06 0.23 3805.33 -1.07 1.55 0.13
Aug 28 term notice month month month year Markit iTraxx France 10/22 2.25 106.16 -0.59 0.00 0.04 0.03 0.25
3 10 - 15 Years 225.40 0.32 4871.48 -2.06 1.94 0.43
Euro -0.74 -0.44 -0.72 -0.42 -0.67 -0.37 -0.62 -0.32 -0.64 -0.34 -0.61 -0.31 Crossover 5Y 321.62 0.53 -11.03 -39.84 743.22 319.08 05/26 0.50 105.57 -0.46 0.00 0.06 0.04 0.17
4 5 - 15 Years 195.55 0.27 4064.60 -1.46 1.61 0.28
Sterling 0.45 0.55 0.70 0.80 0.78 0.88 0.82 0.97 0.89 1.04 Europe 5Y 54.28 0.30 -0.69 -5.20 131.25 52.31 Germany 02/23 1.50 105.42 -0.68 0.00 0.05 0.03 0.26
5 Over 15 Years 390.84 1.05 6397.70 -5.49 2.77 0.83
Swiss Franc - - - - - - - - - - - - Japan 5Y 61.32 1.10 0.87 1.27 188.33 56.17 02/26 0.50 106.34 -0.64 0.00 0.07 0.05 0.25
7 All stocks 191.74 0.57 4091.33 -3.01 2.05 0.69
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 60.57 0.04 -2.99 -8.83 150.83 59.78 08/29 0.00 104.29 -0.47 0.01 0.09 0.09 0.23
US Dollar 0.07 0.37 -0.02 0.28 0.01 0.31 0.09 0.39 0.13 0.43 0.24 0.54 08/50 0.00 98.16 0.06 0.03 0.14 0.14 0.25 Day's Month Year's Total Return Return
Markit CDX Greece 02/26 3.65 116.66 1.09 0.00 0.00 0.02 -1.10
Japanese Yen -0.50 -0.20 -0.20 0.00 -0.15 0.15 -0.20 0.10 -0.30 0.00 -0.20 0.10 Index Linked Aug 28 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 181.34 1.90 -5.40 -10.64 205.64 170.69
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Ireland 10/22 0.00 101.13 -0.52 0.00 0.06 0.03 0.12 1 Up to 5 Years 305.99 0.27 0.44 -2.75 2519.84 0.44 -1.04
Nth Amer High Yld 5Y 372.06 0.84 -19.99 - 405.86 371.22
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 05/30 2.40 124.44 -0.10 0.02 0.10 0.05 -0.09 2 Over 5 years 821.08 1.56 -4.65 -3.86 6200.60 -4.65 -3.50
Nth Amer Inv Grade 5Y 67.57 0.86 0.06 -2.20 150.81 64.66
05/30 2.40 124.44 -0.10 0.02 0.10 0.05 -0.09 3 5-15 years 519.84 0.60 -0.65 -2.44 4133.49 -0.65 -1.73
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.
Italy 08/22 0.90 101.90 -0.09 -0.02 0.06 -0.03 -0.34 4 Over 15 years 1074.34 1.93 -6.10 -4.22 7901.24 -6.09 -3.99
02/25 0.35 99.90 0.37 -0.01 0.08 0.00 - 5 All stocks 731.12 1.44 -4.21 -3.59 5621.98 -4.21 -3.08
05/30 0.40 99.48 0.46 0.00 0.05 -0.03 -
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 03/48 3.45 132.06 1.94 0.00 0.12 0.03 -0.17 Yield Indices Aug 28 Aug 27 Yr ago Aug 28 Aug 27 Yr ago
Japan 03/22 0.10 100.35 -0.13 -0.01 -0.01 0.02 - 5 Yrs -0.04 0.00 0.15 20 Yrs 0.86 0.90 0.95
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
04/25 0.05 100.00 0.05 -0.01 0.00 -0.01 - 10 Yrs 0.36 0.39 0.43 45 Yrs 0.81 0.87 0.91
Crude Oil† Sep 42.98 -0.02 Corn♦ Sep 347.50 3.75 Aug 27 Aug 27 Prev return stock Market stocks
12/29 0.10 100.71 0.02 -0.01 0.01 0.02 - 15 Yrs 0.69 0.73 0.77
Brent Crude Oil‡ 45.87 0.21 Wheat♦ Sep 539.50 -4.00 Can 4.25%' 21 106.23 -0.675 -0.675 0.91 8.51 96571.22 8
12/49 0.40 94.94 0.59 0.00 -0.01 0.02 -
RBOB Gasoline† Aug 1.32 0.03 Soybeans♦ Sep 951.50 14.75 Fr 0.10%' 21 104.68 -0.912 -0.912 -0.30 11.35 239571.46 15
Netherlands 07/22 2.25 105.37 -0.60 0.00 0.04 0.04 0.30 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Sep 301.60 6.90 Swe 0.25%' 22 110.24 -0.837 -0.837 0.39 31.92 200469.58 7
07/26 0.50 106.16 -0.53 0.00 0.06 0.04 0.19 Real yield Aug 28 Dur yrs Previous Yr ago Aug 28 Dur yrs Previous Yr ago
Natural Gas† Sep 2.66 -0.04 Cocoa (ICE Liffe)X Sep 1725.00 23.00 UK 1.875%' 22 111.22 -2.946 -2.946 0.47 15.74 766134.10 28
Ethanol♦ - - Cocoa (ICE US)♥ Sep 2680.00 245.00 New Zealand 04/25 2.75 112.01 0.14 -0.01 -0.03 -0.25 -0.72 Up to 5 yrs -2.66 3.13 -2.57 -2.79 -3.03 3.12 -2.96 -3.28
UK 2.5%' 24 360.86 -2.838 -2.838 0.07 6.82 766134.10 28
Uranium† Jul 33.80 - Coffee(Robusta)X Sep 1523.00 28.00 05/31 1.50 109.53 0.58 -0.01 -0.07 -0.26 - Over 5 yrs -2.19 24.22 -2.12 -2.30 -2.21 24.27 -2.15 -2.32
UK 2%' 35 300.99 -2.604 -2.604 -2.69 9.08 766134.10 28
Carbon Emissions‡ - - Coffee (Arabica)♥ Sep 127.10 3.85 05/31 1.50 109.53 0.58 -0.01 -0.07 -0.26 - 5-15 yrs -2.76 9.77 -2.69 -2.87 -2.85 9.77 -2.80 -2.94
US 0.625%' 21 - - - - - - -
White SugarX 359.60 -2.30 Norway 08/30 1.38 105.65 0.78 -0.01 0.10 0.22 - Over 15 yrs -2.12 29.35 -2.05 -2.24 -2.13 29.36 -2.07 -2.26
Diesel† - - US 3.625%' 28 137.53 -1.080 -1.080 0.99 16.78 1572573.51 42
Sugar 11♥ 12.63 -0.14 08/30 1.38 105.65 0.78 -0.01 0.10 0.22 - All stocks -2.19 22.35 -2.13 -2.30 -2.22 22.43 -2.16 -2.33
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1800.50 22.50 Cotton♥ Oct 64.25 -0.70 Portugal 10/22 2.20 105.73 -0.47 0.01 -0.01 -0.04 0.00 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1361.00 21.00 Orange Juice♥ Sep 113.45 1.85 02/26 3.30 118.44 -0.06 0.01 0.06 0.03 0.05 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 6669.00 46.00 Palm Oil♣ - - Spain 10/22 0.45 101.92 -0.43 0.00 0.01 -0.05 0.06 Gilt Closing Prices information contained herein is proprietary to
Lead 1977.00 -5.00 Live Cattle♣ Oct 105.10 -1.28 BONDS: TEN YEAR GOVT SPREADS 10/29 0.60 102.97 0.27 0.01 0.09 0.04 0.19 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 15330.00 195.00 Feeder Cattle♣ Sep 134.88 - Sweden 06/22 0.25 110.24 -0.82 0.02 0.10 0.03 1.50 accurate, complete or timely; and does not constitute investment advice.
Tin 17810.00 35.00 Lean Hogs♣ Oct 53.58 -2.15 Spread Spread Spread Spread 06/26 0.13 116.13 -1.24 -0.01 0.10 0.12 0.98 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2506.00 9.50 Bid vs vs Bid vs vs 06/30 0.13 115.52 -1.34 -0.01 0.07 0.10 -
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland 05/22 2.00 104.94 -0.81 0.00 0.01 -0.05 0.30 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1923.85 -9.10 Aug 27 Month Year 05/30 0.50 108.99 -0.40 0.02 0.08 0.09 0.54 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.04 1.51 0.34 Netherlands -0.53 - -
Silver (US cents) 2724.50 85.00 S&P GSCI Spt 359.95 1.92 - United Kingdom - - - - - - - Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria - - - New Zealand 0.58 1.05 -0.12
Platinum 930.00 14.00 DJ UBS Spot 73.14 2.35 - Canada 0.65 1.12 -0.05 Norway 0.78 1.25 0.08 07/22 0.50 100.98 -0.02 0.00 0.02 0.09 -0.34 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 2168.00 -8.00 TR/CC CRB TR 162.98 6.95 -9.53 Denmark -0.29 0.18 -0.99 Portugal -0.06 - - 07/26 1.50 108.52 0.05 0.01 0.07 0.16 -0.26 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland -0.27 0.20 -0.97 Spain 0.27 0.74 -0.43 07/47 1.50 113.51 0.93 0.04 0.12 0.30 -0.11
Iron Ore 123.25 2.05 UBS Bberg CMCI TR 13.20 4.85 -4.74 Germany -0.47 0.00 -1.17 Sweden -1.34 -0.87 -2.04 United States 03/22 0.38 100.33 0.17 0.01 0.03 0.00 - Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 57.50 0.50 LEBA EUA Carbon 28.61 0.00 10.29 Ireland -0.10 0.36 -0.80 Switzerland -0.40 0.06 -1.10 03/25 0.50 100.96 0.29 0.02 0.04 0.02 -
Baltic Dry Index 1488.00 -16.00 LEBA CER Carbon 0.02 0.00 -90.48 Italy 0.46 0.92 -0.24 United Kingdom - - - 02/30 1.50 107.30 0.70 0.05 0.10 0.12 -
LEBA UK Power 40.00 -96.80 -97.34 Japan 0.02 0.49 -0.68 United States 0.70 1.17 0.00 02/50 0.25 115.71 - - - - -
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.
Monday 31 August 2020 ★ FINANCIAL TIMES 11

MANAGED FUNDS SERVICE

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

American Fund USD Class $ 147.07 - 0.13 0.00 M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 42.48 - -0.02 - Data Provided by
American Fund GBP Hedged £ 74.33 - 0.07 0.00 M&G Charity Multi Asset Fund Inc £ 0.76 - -0.01 -
American Fund GBP Unhedged £ 111.49 - 0.12 0.00 M&G Charity Multi Asset Fund Acc £ 83.23 - -0.41 -

Aberdeen Standard Capital (JER) CG Asset Management Limited (IRL) Polar Capital LLP (CYM)
Slater
Investments
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 25 Moorgate, London, EC2R 6AY Regulated
FCA Recognised Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 European Forager A EUR € 175.20 - 2.34 0.00
Aberdeen Standard Capital Offshore Strategy Fund Limited FCA Recognised Foord Asset Management MMIP Investment Management Limited (GSY) www.morningstar.co.uk
CG Portfolio Fund Plc Website: www.foord.com - Email: info@foord.com Regulated
Bridge Fund £ 2.1138 - -0.0121 1.78
FCA Recognised - Luxembourg UCITS Multi-Manager Investment Programmes PCC Limited Data as shown is for information purposes only. No
Global Equity Fund £ 2.9838 - -0.0218 1.10 Absolute Return Cls M Inc £ 128.78 128.78 -0.56 1.46
Global Fixed Interest Fund £ 0.9683 - -0.0024 4.33 Foord International Fund | R $ 44.21 - -0.26 - UK Equity Fd Cl A Series 01 £ 2012.16 2045.81 -148.51 0.00 offer is made by Morningstar or this publication.
Capital Gearing Portfolio GBP P £ 34860.38 34860.38 -141.43 0.53
Income Fund £ 0.6130 - -0.0039 2.61 Capital Gearing Portfolio GBP V £ 169.53 169.53 -0.69 0.21 Foord Global Equity Fund (Lux) | R $ 15.71 - -0.09 - Diversified Absolute Rtn Fd USD Cl AF2 $ 1567.52 - 23.40 0.00
Sterling Fixed Interest Fund £ 0.8972 - -0.0033 2.95 Dollar Fund Cls D Inc £ 172.58 172.58 -1.14 1.81 Regulated Diversified Absolute Return Stlg Cell AF2 £ 1480.45 - 20.26 0.00
UK Equity Fund £ 1.7358 - -0.0118 3.15 Dollar Hedged GBP Inc £ 106.41 106.41 -0.72 1.78 Foord Global Equity Fund (Sing) | B $ 19.11 - -0.09 0.00 Global Equity Fund A Lead Series £ 1446.38 1451.08 -48.72 0.00
Real Return Cls A Inc £ 210.30 210.30 -1.04 2.08 Foord International Trust (Gsy) $ 43.96 - -0.26 0.00 Private Fund Mgrs (Guernsey) Ltd
Regulated
(GSY)
Guide to Data
Orbis Investments (U.K.) Limited (GBR)
Monument Growth 25/08/2020 £ 489.94 494.52 4.65 1.62
Slater Investments Ltd (UK)
28 Dorset Square, London, NW1 6QG www.slaterinvestments.com; Tel: 0207 220 9460
www.orbis.com 0800 358 2030 FCA Recognised The fund prices quoted on these pages are supplied by
Slater Growth 573.51 573.51 1.34 0.00 the operator of the relevant fund. Details of funds
Regulated
published on these pages, including prices, are for the
Orbis OEIC Global Cautious Standard £ 9.96 - -0.03 0.03 Slater Income A Inc 113.39 113.39 0.38 5.22
purpose of information only and should only be used
Orbis OEIC Global Balanced Standard £ 14.17 - -0.07 0.00 Slater Recovery 267.81 267.81 0.90 0.00
Marwyn Asset Management Limited (CYM) as a guide. The Financial Times Limited makes no
Orbis OEIC Global Equity Standard £ 17.44 - 0.02 0.00 Slater Artorius 232.54 232.54 2.30 0.45 representation as to their accuracy or completeness
Chartered Asset Management Pte Ltd Franklin Templeton International Services Sarl (IRL) Regulated
Orbis OEIC UK Equity Standard £ 6.70 - -0.01 0.00
Marwyn Value Investors £ 340.40 - -14.66 0.00 and they should not be relied upon when making an
Other International Funds JPMorgan House - International Financial Services Centre,Dublin 1, Ireland investment decision.
CAM-GTF Limited $ 294492.55 294492.55 1046.77 0.00 Other International Funds Prusik Investment Management LLP (IRL)
CAM GTi Limited $ 864.80 - 72.09 0.00 Enquiries - 0207 493 1331
Franklin Emerging Market Debt Opportunities Fund Plc The sale of interests in the funds listed on these pages
Raffles-Asia Investment Company $ 1.44 1.44 0.08 2.08 Regulated may, in certain jurisdictions, be restricted by law and
Franklin Emg Mkts Debt Opp CHFSFr 13.82 - 0.16 10.93
Prusik Asian Equity Income B Dist $ 162.45 - 0.79 4.86 the funds will not necessarily be available to persons
Franklin Emg Mkts Debt Opp GBP £ 8.93 - 0.07 7.85
Prusik Asia Emerging Opportunities Fund A Acc $ 159.07 - 1.34 0.00 in all jurisdictions in which the publication circulates.
Franklin Emg Mkts Debt Opp SGD S$ 19.66 - 0.33 5.44
Prusik Asia Fund U Dist. £ 207.18 - -1.20 0.00 Persons in any doubt should take appropriate
Franklin Emg Mkts Debt Opp USD $ 15.52 - 0.34 7.55
professional advice. Data collated by Morningstar. For
Milltrust International Managed Investments ICAV (IRL) other queries contact reader.enquiries@ft.com +44
mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com (0)207 873 4211.
Algebris Investments (IRL)
Regulated
Regulated The fund prices published in this edition along with
Dodge & Cox Worldwide Funds (IRL) British Innovation Fund £ 123.94 - 23.92 0.00 additional information are also available on the
Algebris Financial Credit I EUR € 179.03 - -0.45 0.00 MAI - Buy & Lease (Australia) A$ 123.94 - 21.42 0.00
6 Duke Street,St.James,London SW1Y 6BN Financial Times website, www.ft.com/funds. The
Algebris Financial Credit R EUR € 156.07 - -0.40 0.00 MAI - Buy & Lease (New Zealand)NZ$ 98.28 - 0.99 0.00
www.dodgeandcox.worldwide.com 020 3713 7664 funds published on these pages are grouped together
Algebris Financial Credit Rd EUR € 106.31 - -0.27 5.12
FCA Recognised
Milltrust Global Emerging Markets Fund - Class A $ 102.84 - -0.55 0.00 Purisima Investment Fds (CI) Ltd (JER) by fund management company.
Algebris Financial Income I EUR € 135.09 - -0.10 0.00 GAM The Climate Impact Asia Fund (Class A) $ 94.29 - 7.55 - Regulated
Algebris Financial Income R EUR € 125.47 - -0.10 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund funds@gam.com, www.funds.gam.com Prices are in pence unless otherwise indicated. The
PCG B 277.84 - 4.74 0.00
Algebris Financial Income Rd EUR € 83.66 - -0.06 4.60 EUR Accumulating Class € 14.69 - 0.00 0.00 Regulated change, if shown, is the change on the previously
PCG C 271.62 - 4.63 0.00
Algebris Financial Equity B EUR € 89.27 - -0.07 0.00 EUR Accumulating Class (H) € 11.17 - -0.01 0.00 LAPIS GBL TOP 50 DIV.YLD-Na-D £ 97.19 - 0.06 - quoted figure (not all funds update prices daily). Those
Algebris IG Financial Credit B EUR € 106.19 - -0.05 - EUR Distributing Class € 11.65 - 0.00 3.94 LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 94.46 - -0.14 -
Stonehage Fleming Investment Management Ltd (IRL) designated $ with no prefix refer to US dollars. Yield
Algebris IG Financial Credit R EUR € 105.60 - -0.06 - EUR Distributing Class (H) € 8.82 - -0.01 4.00 Pictet Asset Management (Europe) SA (LUX) www.stonehagefleming.com/gbi percentage figures (in Tuesday to Saturday papers)
Algebris Global Credit Opportunities I EUR € 123.08 - -0.25 0.00 GBP Distributing Class £ 12.71 - 0.00 4.02 15, Avenue J.F. Kennedy L-1855 Luxembourg enquiries@stonehagefleming.com allow for buying expenses. Prices of certain older
Algebris Global Credit Opportunities R EUR € 121.11 - -0.25 0.00 GBP Distributing Class (H) £ 9.27 - -0.01 4.31 Tel: 0041 58 323 3000 Regulated insurance linked plans might be subject to capital
Algebris Global Credit Opportunities Rd EUR € 121.11 - -0.25 0.00 USD Accumulating Class $ 12.53 - -0.01 0.00 FCA Recognised SF Global Best Ideas Eq B USD ACC $ 229.48 - -0.06 - gains tax on sales.
Algebris Core Italy I EUR € 106.80 - -0.27 0.00 Milltrust International Managed Investments SPC Pictet-Absl Rtn Fix Inc-HI EUR € 112.28 - -0.17 0.00 SF Global Best Ideas Eq D GBP INC £ 263.96 - -0.02 -
Dodge & Cox Worldwide Funds plc-Global Stock Fund
Algebris Core Italy R EUR € 100.08 - -0.25 0.00 em@milltrust.com, +44(0)20 8123 8369, www.milltrust.com Pictet-Asian Equities Ex Japan-I USD F $ 373.75 - 1.82 0.00 Guide to pricing of Authorised Investment Funds:
USD Accumulating Share Class $ 21.06 - -0.01 0.00 Regulated (compiled with the assistance of the IMA. The
Algebris Allocation I EUR € 97.07 - 0.20 0.00 Pictet-Asian Local Currency Debt-I USD F $ 183.83 - -0.05 -
GBP Accumulating Share Class £ 26.25 - 0.01 0.00 Investment Management Association, 65 Kingsway,
Milltrust Alaska Brazil SP A $ 66.84 - -0.04 - Pictet-Biotech-I USD F $ 1030.87 - 2.85 0.00
GBP Distributing Share class £ 18.16 - 0.01 1.66 Genesis Investment Management LLP Milltrust Laurium Africa SP A $ 81.55 - 2.07 - London WC2B 6TD.
Pictet-CHF Bonds I CHF SFr 511.37 - -0.09 0.00
EUR Accumulating Share Class € 26.76 - 0.00 0.00 Other International Funds Tel: +44 (0)20 7831 0898.)
Milltrust Singular ASEAN SP Founders $ 127.41 - 0.30 - Pictet-China Index I USD $ 194.07 - -0.25 0.00
GBP Distributing Class (H) £ 10.32 - -0.01 1.27 Emerging Mkts NAV £ 7.21 - -0.16 0.00 Milltrust SPARX Korea Equity SP A $ 128.42 - 2.77 - Pictet-Clean Energy-I USD F $ 133.73 - -0.27 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund OEIC: Open-Ended Investment Company. Similar to a
Milltrust Xingtai China SP A $ 142.12 - 1.16 - Pictet-Digital-I USD F $ 567.71 - -0.15 - unit trust but using a company rather than a trust
USD Accumulating Share Class $ 26.55 - 0.21 0.00 Pictet-Em Lcl Ccy Dbt-I USD F $ 180.27 - -0.14 0.00 structure.
GBP Accumulating Share Class £ 31.30 - 0.29 0.00 Pictet-Emerging Europe-I EUR F € 391.59 - -2.73 -
GBP Distributing Share Class £ 19.15 - 0.17 1.15 Pictet-Emerging Markets-I USD F $ 742.46 - -0.26 0.00 Different share classes are issued to reflect a different
The Antares European Fund Limited EUR Accumulating Share Class € 29.14 - 0.26 0.00 Pictet-Emerging Markets Index-I USD F $ 320.57 - -0.54 0.00 currency, charging structure or type of holder.
Other International GBP Distributing Class (H) £ 11.08 - 0.09 1.56 Pictet-Emerging Corporate Bonds I USD $ 136.99 - -0.07 0.00
AEF Ltd Usd (Est) $ 595.42 - -0.60 - Pictet-Emerging Markets High Dividend I USD $ 131.99 - 0.30 0.00 Selling price: Also called bid price. The price at which
AEF Ltd Eur (Est) € 557.50 - -0.59 0.00 Pictet-Emerging Markets Sust Eq I USD $ 105.83 - 0.00 0.00 Ram Active Investments SA units in a unit trust are sold by investors.
HPB Assurance Ltd
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Pictet-EUR Bonds-I F € 646.81 - -1.00 - www.ram-ai.com
Pictet-EUR Corporate Bonds-I F € 220.12 - -0.13 0.00 Buying price: Also called offer price. The price at
International Insurances Other International Funds
Pictet-EUR Government Bonds I EUR € 179.14 - -0.28 - which units in a unit trust are bought by investors.
RAM Systematic Emerg Markets Eq $ 189.21 189.21 -0.23 -
Holiday Property Bond Ser 1 £ 0.50 - 0.00 0.00 Includes manager’s initial charge.
Pictet-EUR High Yield-I F € 281.99 - 0.00 0.00 RAM Systematic European Eq € 438.04 438.04 -4.10 -
Holiday Property Bond Ser 2 £ 0.63 - 0.01 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 137.35 - -0.01 0.00 RAM Systematic Funds Global Sustainable Income Eq $ 119.22 119.22 -0.28 0.00 Single price: Based on a mid-market valuation of the
Pictet-EUR Short Term HY I EUR € 125.25 - 0.02 0.00 RAM Systematic Long/Short Emerg Markets Eq $ 103.99 103.99 -0.15 - Toscafund Asset Management LLP (UK) underlying investments. The buying and selling price
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 100.10 - 0.00 0.00 RAM Systematic Long/Short European Eq € 137.40 137.40 -0.89 - for shares of an OEIC and units of a single priced unit
www.toscafund.com
Arisaig Partners Pictet-Euroland Index IS EUR € 155.86 - -0.94 - RAM Systematic North American Eq $ 335.15 335.15 -1.49 -
Authorised Funds trust are the same.
Other International Funds Pictet-Europe Index-I EUR F € 193.96 - -1.27 0.00 RAM Tactical Global Bond Total Return € 154.39 - -0.13 -
Aptus Global Financials B Acc £ 3.30 - 0.03 -
Pictet-European Equity Selection-I EUR F € 620.92 - -3.44 0.00 RAM Tactical II Asia Bond Total Return $ 154.57 - 0.01 - Treatment of manager’s periodic capital charge:
Arisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 115.78 - 1.58 0.00 Aptus Global Financials B Inc £ 2.30 - 0.02 7.05
Pictet-European Sust Eq-I EUR F € 289.32 - -3.03 0.00 The letter C denotes that the trust deducts all or part
Arisaig Asia Consumer Fund Limited $ 114.94 - 1.71 -
Pictet-Global Bds Fundamental I USD $ 136.65 - -0.55 0.00 of the manager’s/operator’s periodic charge from
Arisaig Global Emerging Markets Consumer Fund $ 14.74 - 0.15 -
Arisaig Global Emerging Markets Consumer UCITS € 12.85 - -0.01 -
Intrinsic Value Investors (IVI) LLP (IRL)
New Capital UCITS Fund PLC (IRL) Pictet-Global Bonds-I EUR € 191.86 - -0.43 0.00 capital, contact the manager/operator for full details
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Pictet-Global Defensive Equities I USD $ 202.81 - -0.87 0.00 of the effect of this course of action.
Arisaig Global Emerging Markets Consumer UCITS STG £ 14.50 - -0.10 - Leconfield House, Curzon Street, London, W1J 5JB
FCA Recognised Pictet-Global Emerging Debt-I USD F $ 463.66 - -1.03 0.00
Arisaig Latin America Consumer Fund $ 23.01 - 0.09 - www.newcapitalfunds.com Exit Charges: The letter E denotes that an exit charge
IVI European Fund EUR € 22.51 - -0.04 0.00 Pictet-Global Env.Opport-I EUR € 268.96 - -2.15 -
FCA Recognised may be made when you sell units, contact the
IVI European Fund GBP £ 26.79 - -0.11 0.36 Pictet-Global Megatrend Selection-I USD F $ 372.35 - 0.53 -
New Capital UCITS Funds manager/operator for full details.
Dragon Capital Group Pictet-Global Sust.Credit HI EUR € 163.57 - -0.43 0.00
New Capital China Equity Fund $ 241.51 - 2.65 0.00 Pictet-Greater China-I USD F $ 927.67 - 4.77 0.00
Ruffer LLP (1000)F (UK)
Toscafund Asset Management LLP
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam 65 Gresham Street, London, EC2V 7NQ Time: Some funds give information about the timing of
New Capital Dynamic European Equity Fund € 126.14 - -0.52 0.00 Pictet-Health-I USD $ 369.84 - 1.17 - www.toscafund.com
Fund information, dealing and administration: funds@dragoncapital.com Order Desk and Enquiries: 0345 601 9610 price quotes. The time shown alongside the fund
New Capital Dynamic UK Equity Fund £ 110.80 - -0.56 0.00 Pictet-SmartCity-I EUR € 215.44 - -0.66 0.00 Tosca A USD $ 277.72 - -5.57 - manager’s/operator’s name is the valuation point for
Other International Funds New Capital Global Alpha Fund £ 113.36 - -0.20 0.00 Pictet-India Index I USD $ 126.08 - 1.02 0.00 Authorised Inv Funds Tosca Mid Cap GBP £ 117.51 - -36.63 - their unit trusts/OEICs, unless another time is
Vietnam Equity (UCITS) Fund A USD $ 20.22 - 0.16 0.00 New Capital Global Equity Conviction Fund $ 180.27 - 0.41 - Pictet-Indian Equities-I USD F $ 584.52 - 5.25 0.00 Authorised Corporate Director - Link Fund Solutions Tosca Opportunity B USD $ 177.66 - -59.35 - indicated by the symbol alongside the individual unit
Artemis Fund Managers Ltd (1200)F (UK) New Capital Global Value Credit Fund $ 156.94 - -0.31 0.00 Pictet-Japan Index-I JPY F ¥ 18364.96 - -124.59 0.00 LF Ruffer European C Acc 680.29 - 1.28 0.60 Pegasus Fund Ltd A-1 GBP £ 28.00 - -8.90 0.00 trust/OEIC name.
57 St. James's Street, London SW1A 1LD 0800 092 2051 New Capital Japan Equity Fund ¥ 1421.31 - -5.19 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 11295.37 - -90.15 0.00 LF Ruffer European C Inc 124.27 - 0.23 0.67
Authorised Inv Funds Janus Henderson Investors (UK)
New Capital US Growth Fund $ 406.62 - -1.96 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 16139.75 - -121.63 0.00 LF Ruffer European O Acc 664.02 - 1.24 0.31 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Artemis Corporate Bond I Acc £ 1.08 - 0.00 - New Capital US Small Cap Growth Fund $ 175.27 - -0.18 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 128.84 - -0.28 0.00 LF Ruffer Equity & General C Acc 445.87 - -0.88 0.51 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Artemis Target Return Bond I Acc £ 1.03 - 0.00 - www.janushenderson.com New Capital Wealthy Nations Bond Fund $ 153.20 - -0.42 0.00 Pictet-Multi Asset Global Opportunities-I EUR € 129.84 - -0.18 0.00 midnight. Daily dealing prices are set on the basis of
LF Ruffer Equity & General C Inc 408.58 - -0.82 0.52
Authorised Inv Funds Pictet-Nutrition-I EUR € 259.73 - -1.87 0.00 the valuation point, a short period of time may elapse
LF Ruffer Equity & General O Acc 435.24 - -0.87 0.20
Janus Henderson Instl UK Idx Opps A Acc £ 0.86 - 0.00 - Pictet-Pacific Ex Japan Index-I USD F $ 438.53 - -0.67 0.00 LF Ruffer Equity & General O Inc 402.96 - -0.81 0.22 before prices become available. Historic pricing: The
Pictet-Premium Brands-I EUR F € 215.80 - -1.34 - letter H denotes that the managers/operators will
Ennismore Smaller Cos Plc (IRL) LF Ruffer Gold C Acc 334.88 - 1.02 0.00
Pictet-Russia Index I USD $ 85.50 - -0.60 0.00 normally deal on the price set at the most recent
5 Kensington Church St, London W8 4LD 020 7368 4220 LF Ruffer Gold C Inc 202.68 - 0.62 - Troy Asset Mgt (1200) (UK) valuation. The prices shown are the latest available
FCA Recognised Pictet-Russian Equities-I USD F $ 87.59 - -0.15 0.00 LF Ruffer Gold O Acc 326.78 - 0.99 0.00 65 Gresham Street, London, EC2V 7NQ before publication and may not be the current dealing
Ennismore European Smlr Cos NAV £ 120.70 - 0.17 0.00 Pictet-Security-I USD F $ 346.35 - 1.68 0.00 LF Ruffer Japanese C Inc 144.54 - -2.76 0.30
Order Desk and Enquiries: 0345 608 0950 levels because of an intervening portfolio revaluation
Ennismore European Smlr Cos NAV € 135.04 - 0.49 0.00 Pictet-Small Cap Europe-I EUR F € 1442.89 - -7.04 0.00 LF Ruffer Japanese C Acc 310.40 - -5.92 0.29
Authorised Inv Funds or a switch to a forward pricing basis. The
Pictet-ST Emerg Local Currency Debt-I USD F $ 103.54 - -0.11 0.00 LF Ruffer Pacific & Emerging Markets C Acc 360.94 - -1.02 1.28 managers/operators must deal at a forward price on
Pictet-ST.MoneyMkt-I € 137.91 - -0.01 0.00 LF Ruffer Pacific & Emerging Markets C Inc 99.20 - -0.28 1.38 Authorised Corporate Director - Link Fund Solutions
request, and may move to forward pricing at any time.
Kames Capital ICVC (UK) Pictet-ST.MoneyMkt JPY I USD ¥ 100702.62 - -0.44 0.00 LF Ruffer Pacific & Emerging Markets O Acc 352.00 - -1.00 1.01 Trojan Investment Funds Forward pricing: The letter F denotes that that
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Pictet-ST.MoneyMkt-ICHF SFr 119.65 - -0.01 0.00 LF Ruffer Total Return C Acc 480.95 - -0.47 1.40 managers/operators deal at the price to be set at the
Trojan Ethical O Acc 118.36 - -0.27 0.10
0800 358 3009 www.kamescapital.com Pictet-ST.MoneyMkt-IUSD $ 146.02 - 0.01 - LF Ruffer Total Return C Inc 312.31 - -0.30 1.42 next valuation.
Trojan Ethical O Inc 118.13 - -0.27 0.09
Authorised Funds Pictet-Timber-I USD F $ 210.56 - -0.02 0.00 LF Ruffer Total Return O Acc 469.43 - -0.47 1.40
Pictet-US High Yield-I USD F $ 180.87 - 0.24 0.00 LF Ruffer Total Return O Inc 304.66 - -0.30 1.42 Investors can be given no definite price in advance of
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Other International Funds Pictet-USD Short Mid-Term Bonds-I F $ 144.78 - -0.03 0.00 provided by the managers/operators. Scheme
NAV € 489.14 - 0.57 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 109.70 - 0.00 - particulars, prospectus, key features and reports: The
Pictet-Water-I EUR F € 418.28 - -4.89 0.00 most recent particulars and documents may be
obtained free of charge from fund
Ashmore Investment Management Limited (LUX) Oasis Crescent Management Company Ltd managers/operators. * Indicates funds which do not
WA Fixed Income Fund Plc (IRL)
2 rue Albert Borschette L-1246 Luxembourg Other International Funds price on Fridays.
Regulated
FCA Recognised Oasis Crescent Equity Fund R 11.13 - -0.20 0.71 European Multi-Sector € 121.56 - -0.20 3.27 Charges for this advertising service are based on the
Ashmore SICAV Emerging Market Debt Fund $ 90.36 - -0.11 5.62
Ashmore SICAV Emerging Market Frontier Equity Fund $ 145.64 - -0.27 1.72 number of lines published and the classification of the
fund. Please contact data@ft.com or
Ashmore SICAV Emerging Market Total Return Fund $ 78.16 - -0.07 4.71
Equinox Fund Mgmt (Guernsey) Limited (GSY) call +44 (0)20 7873 3132 for further information.
Ashmore SICAV Global Small Cap Equity Fund $ 170.95 - -0.68 0.03
EM Active Equity Fund Acc USD $ 136.37 - -1.14 0.00 Regulated
EM Equity Fund Acc USD $ 122.35 - -0.36 0.00 Equinox Russian Opportunities Fund Limited $ 168.94 - 4.98 0.00
EM Mkts Corp.Debt USD F $ 87.51 - -0.02 6.76
EM Mkts Loc.Ccy Bd USD F $ 73.73 - -0.02 4.91
EM Short Duration Fund Acc USD $ 117.26 - 0.02 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Regulated
Oasis Crescent Global Investment Fund (Ireland) plc
Kames Capital VCIC (IRL) Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.99 - 0.00 2.28 RobecoSAM (LUX)
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Oasis Crescent Global Equity Fund $ 32.95 - -0.16 0.50 Tel. +41 44 653 10 10 http://www.robecosam.com/
Euronova Asset Management UK LLP (CYM) Oasis Crescent Variable Balanced Fund £ 8.94 - -0.03 0.00 Regulated
FCA Recognised
Regulated OasisCresGl Income Class A $ 10.99 - -0.01 - RobecoSAM Sm.Energy/A £ 22.99 - -0.31 1.33
Absolute Return Bond B GBP Acc 1139.81 - 0.46 1.61
OasisCresGl LowBal D ($) Dist $ 12.19 - -0.03 1.04 RobecoSAM Sm.Energy/N € 21.45 - -0.23 0.00
Smaller Cos Cls One Shares € 50.57 - 0.57 0.00 High Yield Global Bond A GBP Inc 487.75 - 0.41 4.49
OasisCresGl Med Eq Bal A ($) Dist $ 13.17 - -0.03 0.37 Platinum Capital Management Ltd RobecoSAM Sm.Materials/A £ 196.02 - -1.03 1.62
Atlantas Sicav (LUX) Smaller Cos Cls Two Shares € 33.37 - 0.34 0.00 High Yield Global Bond B GBP Inc 1041.54 - 0.88 5.23
Oasis Crescent Gbl Property Eqty $ 7.62 - 0.03 - Other International Funds RobecoSAM Sm.Materials/N € 207.35 - -0.64 0.00
Regulated Smaller Cos Cls Three Shares € 16.80 - 0.17 0.00 Kames Global Equity Income B GBP Acc 1922.54 - -13.30 0.00
American Dynamic $ 5788.95 5788.95 -69.26 0.00 Smaller Cos Cls Four Shares € 21.59 - 0.22 0.00 Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19 Platinum All Star Fund - A $ 131.67 - - - RobecoSAM Sm.Materials/Na € 135.22 - -0.42 1.61
American One $ 5720.07 5720.07 31.53 - Kames Global Equity Market Neutral Fund - B Acc GBP £ 11.62 - -0.09 0.00 Platinum Global Growth UCITS Fund $ 13.03 - -0.11 0.00 RobecoSAM S.HealthyLiv/B € 229.51 - 0.57 0.00
Platinum Essential Resources UCITS Fund SICAV USD Class E $ 7.39 - -0.04 0.00 RobecoSAM S.HealthyLiv/N € 221.54 - 0.56 0.00 Yuki - Co, LLC (IRL)
Bond Global € 1498.94 1498.94 -4.99 0.00 Kames Inv Grd Gbl Bond A Inc GBH 613.98 - -2.81 1.81
Platinum Global Dividend UCITS Fund $ 54.86 - 0.26 0.00 RobecoSAM S.HealthyLiv/Na £ 163.83 - 0.06 1.44 Tel +18015545191 www.yukifunds.com
Eurocroissance € 1167.82 1167.82 6.79 0.00 Global Sustainable Equity B Acc GBP £ 23.15 - -0.21 0.00
RobecoSAM S.Water/A £ 286.58 - -2.06 1.53 Regulated
Far East $ 1066.35 - -5.19 - Global Sustainable Equity C Acc GBP £ 23.45 - -0.21 0.00
Short Dated High Yld Bd B Acc GBP £ 10.60 - 0.00 0.00 RobecoSAM S.Water/N € 253.77 - -1.26 0.00 Yuki Mizuho Umbrella Fund
Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.70 - 0.01 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6134.00 - -134.00 0.00
Strategic Global Bond A GBP Inc 1254.99 - -2.29 2.70 Omnia Fund Ltd Yuki Japan Low Price ¥ 34109.00 - -994.00 0.00
FIL Investment Services (UK) Limited (1200)F (UK) Strategic Global Bond B GBP Inc 712.21 - -1.27 3.45 Other International Funds Yuki Asia Umbrella Fund
130, Tonbridge Rd, Tonbridge TN11 9DZ Estimated NAV $ 584.11 - 9.49 0.00 Yuki Japan Rebounding Growth Fund JPY Class ¥ 29156.00 - -908.00 0.00
Callfree: Private Clients 0800 414161 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1198.40 - -37.76 0.00
Broker Dealings: 0800 414 181
Barclays Investment Funds (CI) Ltd (JER) OEIC Funds
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Rubrics Global UCITS Funds Plc (IRL)
Fidelity American Fund W-ACC-GBP £ 50.58 - -0.52 0.35 www.rubricsam.com
FCA Recognised Fidelity Cash Fund Y-ACC-GBP £ 1.02 - 0.00 0.66 Regulated
Bond Funds FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.05 - -0.01 4.63
Lloyds Investment Fund Managers Limited (1000)F (JER) Rubrics Emerging Markets Fixed Income UCITS Fund $ 136.91 - 0.07 0.00
Sterling Bond F £ 0.50 - 0.00 - Fidelity Global Enhanced Income Fund W-ACC-GBP £ 1.94 - -0.02 3.86 Rubrics Global Credit UCITS Fund $ 17.36 - -0.01 0.00
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Oryx International Growth Fund Ltd
Fidelity Global Focus Fund W-ACC-GBP £ 28.97 - -0.36 - Rubrics Global Fixed Income UCITS Fund $ 182.47 - -0.41 0.00
Other International Funds Other International Funds Zadig Gestion (Memnon Fund) (LUX)
Fidelity Global High Yield Fund Y-ACC-GBP £ 14.80 - 0.02 3.86 Q Rubrics India Fixed Income UCITS Fund $ 11.30 - 0.07 0.00
Fidelity Japan Fund W-ACC-GBP £ 4.39 - -0.04 0.69 Lloyds Investment Funds Limited NAV (Fully Diluted) £ 9.10 - -0.52 0.00 FCA Recognised
Rubrics India Fixed Income UCITS Fund $ 98.04 - 0.62 0.00
Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 3.64 - -0.06 0.42 Euro High Income € 1.5380 - -0.0050 2.31 Memnon European Fund - Class U2 GBP £ 185.93 - -1.63 0.00
Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.10 - 0.00 0.76 High Income £ 0.8697 - -0.0038 3.72
Fidelity Special Situations Fund W-ACC-GBP £ 29.28 - -0.19 3.91 Sterling Bond £ 1.5910 - -0.0080 2.11
Polar Capital Funds Plc (IRL)
Short Dated Corporate Bond Fund Y ACC GBP £ 10.89 - 0.00 3.93 Lloyds Multi Strategy Fund Limited Regulated
Fidelity Sustainable Water & Waste W Acc £ 1.00 - -0.01 -
CCLA Investment Management Ltd (UK) Conservative Strategy £ 1.2850 - -0.0040 0.00 Automation & Artificial Intelligence CL I USD Acc $ 15.25 15.25 -0.08 -
Fidelity Sustainable Water & Waste W Inc £ 1.00 - -0.01 - Growth Strategy £ 1.7970 - -0.0070 0.00
Senator House 85 Queen Victoria Street London EC4V 4ET Asian Financials I USD $ 392.84 392.84 0.15 0.00
Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 - Aggressive Strategy £ 2.4490 - -0.0090 0.00
Authorised Inv Funds Biotechnology I USD $ 32.46 32.46 -0.27 0.00
Fidelity UK Select Fund W-ACC-GBP £ 2.90 - -0.03 2.60 Global USD Growth Strategy $ 1.7530 - -0.0040 0.00
Diversified Income 1 Units GBP Inc £ 1.54 1.54 0.00 0.03 Emerging Market Stars I USD Acc $ 13.28 - -0.01 -
Diversified Income 2 Units GBP Inc £ 1.48 1.48 0.00 0.03 Institutional OEIC Funds Dealing Daily European Ex UK Inc EUR Acc € 10.91 10.91 -0.04 0.00
Diversified Income 3 Units GBP Inc £ 1.49 1.49 0.00 0.03 Europe (ex-UK) Fund ACC-GBP £ 6.53 - -0.05 0.61 Financial Opps I USD $ 11.47 - 0.12 2.41
GEM Income I USD $ 11.14 - -0.04 0.00
Global Convertible I USD $ 14.98 14.98 -0.03 0.00
Global Insurance I GBP £ 6.75 - 0.09 0.00
Global Technology I USD $ 78.43 - -0.55 -
Healthcare Blue Chip Fund I USD Acc $ 15.31 15.31 -0.01 0.00
Healthcare Opps I USD $ 55.97 - -0.60 0.00
M & G Securities (1200)F (UK) Income Opportunities B2 I GBP Acc £ 2.09 2.09 0.02 0.00
Findlay Park Funds Plc (IRL) PO Box 9038, Chelmsford, CM99 2XF Japan Value I JPY ¥ 101.74 101.74 -0.59 0.00
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 North American I USD $ 27.45 27.45 0.06 0.00
www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472
UK Absolute Equity I GBP £ 15.47 15.47 0.00 0.00
FCA Recognised Authorised Inv Funds
UK Val Opp I GBP Acc £ 10.35 10.35 0.03 0.00
American EUR Unhedged Class € 124.74 - 0.39 - M&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.25 - 0.00 -
12 ★ FINANCIAL TIMES Monday 31 August 2020

WORK & CAREERS

The Covid-era
‘
Queen Elizabeth may have shaken a vector for resurgence of Covid-19, as Ms Marshall’s belief is that carefully more intimate engagement with
stranger’s hand for the last time. Even hugs and kisses have been already in orchestrated meetings, lubricated by someone, and more one-on-one time”.

protocol for if state occasions resume, and even if

others become comfortable again with
a palm-to-palm greeting, it will be a
face-to-face brave palace flunkey who advises a 94-
year-old monarch with a 99-year-old
meetings consort to risk it.
You don’t have to be a royal to have
felt this strange shift in the codes of
human connectivity and sociability.
The last business dinner I attended
before lockdown was arranged to
discuss trust. Guests included
entrepreneurs, philanthropists,
financiers and a senior clergyman.
As we convened, we reached an
tactile Spain. Within the world of more
formal business or diplomatic
meetings, centuries-old norms of
behaviour are changing, shoved aside
by blunter health and safety protocols.
Capricia Penavic Marshall feels the
change more than most. As chief of
protocol for four years of Barack
Obama’s administration, her hand was
almost always the first shaken by heads
of state as they stepped out of cars or
aircraft on official visits. In her new
book, Protocol — an etiquette guide
crossed with a handshake-and-tell
memoir of her red-carpeted career —
more informal social contact, allow
participants to “bridge and persuade”.
Shorn of the social graces, though, such
meetings risk taking place on rickety
half-built bridges, undermined by a
new set of heavy-handed protocols
about health and safety.
For those in the public eye, the only
option may seem to be to avoid social
contact altogether. In the past week,
Ireland’s agriculture minister and its
EU commissioner have resigned after
attending a golf society dinner that
allegedly breached the Covid-19 limit
on numbers. More forgivably, Crown
Virtual interaction is evolving its
own etiquette. During a recent online
discussion, Jamaica’s ambassador to
the US, Audrey Marks, said she hoped
diplomacy would return from
Since lockdown, lockdown with the “best of both worlds
. . . while getting back to what we all
the inability to crave: more personal interconnection”.
reinforce a hello Still, it would not take much to
destroy the delicate fretwork of high-
or goodbye in the summitry described in Protocol. In
traditional way 2010, for instance Ms Marshall
arranged for the legs on the chair of
feels like a breach diminutive Russian president Dmitry
of etiquette Medvedev to be lengthened so he

informal understanding we would not
shake hands. But during the dinner
debate, one late arrival pointed out
that the fact we had not greeted him in
the traditional way, even though he
had washed his hands first, must have
meant we didn’t trust him. Everyone
sheepishly shook hands on parting.
Since lockdown, I’ve noticed how the
inability to reinforce a hello or goodbye
in the traditional way feels like a
breach of etiquette.
Handshakes will return, at least
Andrew Hill among people who know each other.
Until the discovery of an effective
On management vaccine, though, the handshake will
probably also continue to be a reliable
she lists five “non-negotiable SMART
rules” for establishing a new
connection. The S stands for “shake
hands . . . with everyone you meet for
the first time” (her emphasis).
It is not the only advice that seems
redundant in an age of masks,
temperature checks and social
distancing. Ms Marshall cites research
by Oscar Ybarra of the University of
Michigan and others showing that even
short bursts of social interaction
promote cognitive functioning.
“Socialising,” Ms Marshall writes, “is,
in essence, a great warm-up
exercise . . . for business negotiations
that require more focus and creativity.”
’
Princess Mary of Denmark had to would not be dwarfed by Mr Obama
apologise after she instinctively shook and risk humiliation. The guardedness
an official’s hand during a royal visit to of the Covid era, and the increased risk
a wildlife centre. of misinterpretation, could easily slide
The solution, according to Ms into suspicion, insularity, and hostility.
Marshall, is still to apply the rule she People returning to face-to-face
learnt from organising summits — plan dealmaking and discussion need to
everything — and then “lean in to the draw on all their reserves of empathy.
challenge and be creative”. The When invitations are refused,
handshakes and hugs may have gone, engagements turned down at the last
but there are plenty of other touchless moment, or handshakes rejected, it
greetings — a bow, a head-nod, the will be natural to feel affronted.
Indian “namaste” — that can replace Instead, Ms Marshall says, ever the
them. On the Washington DC social diplomat, her strongest piece of advice
circuit, she told me, “it’s quite exciting is: “Take no offence”.
how people are bringing others
together in small groups: you get a andrew.hill@ft.com

Charities Work Tribes

‘Please personalise your masks

Why volunteering is more — let your creativity run wild’

andrew hill and emma jacobs

than just a helping hand

Contributing to something
outside a professional job
brings satisfaction and, Pippa, Thrust’s Vibe-master Jason, the sponsor-me guy:
Welcome everyone! I’ve had Thanks, Pippa. As it
for some, an escape, the joy of seeing some of happens, yes. We've
writes Susie Mesure you in person at Thrust. But installed a full gym at home
the rest, it’s been too long — during lockdown. It’s also
we miss you! somewhere Annabella and

F
aced with redundancy and a
gaping diary after Thomas
Cook, her employer of four
years, went bust, Alice Ratcliffe
knew there was one thing she
wanted to do: get involved with a charity.
Rather than use her professional expe-
rience in corporate communications, she
wanted to do something “practical and
hands on”, partly to make amends for a
“privileged existence”, hopping around
the globe on business flights.
Every Tuesday, she cycles to a com-
munity centre in London’s King’s Cross,
which is home to a branch of Little Vil-
lage, a charity that provides local fami-
lies in need of baby clothes and equip-
ment with the supplies they need.
Before Covid-19, families would come in
to talk through their problems, leaving
with bags of donated goods; now they
chat to volunteers such as Ms Ratcliffe
by phone.
“It can be really hard work but you
always come out of it thinking you’ve
learnt something new or seen a situation
from a different perspective,” she says.
Regular shifts since January have
helped her to regain some structure to
her week and become part of a team
again, compensating for losing her
former colleagues at the travel com-
pany. “It made me feel I could be pro-
ductive and do something that was com-
pletely outside my usual professional
experience.”
Volunteering also provides an escape.
“I joke that going there is very selfish; I
enjoy it as a complete break from my
own life,” adds Ms Ratcliffe.
She is far from alone. “[For many peo-
ple] volunteering offers something dif-
ferent from their high-pressured life,”
says Paul Reddish, who runs Volunteer-
ing Matters, which links people keen to
help with relevant causes. Serving soup
on a Friday night at a local homelessness
shelter is popular with “quite senior
executives” seeking downtime.
Working from home is pushing more
people out of the house in search of a
change of scene and pace, he adds. “In
lockdown, lines got muddied; volun-
teering can help people step out of their
environment and do something for their
own mental health.”
Although the number of people who
volunteer in the UK hovers at about
19m, according to the National
Council for Voluntary Organisa-
tions (NCVO), an umbrella
body for charities, interest
exploded at the start of the
coronavirus crisis. More than
1m people signed up to the
NHS Volunteer Responders
scheme and traditional chari-
ties. “We had 200,000 applica-
tions in the first six weeks. These
are mind-blowing numbers,” says
Mr Reddish.
Too big, as it turned out — most
Alice Ratcliffe people didn’t get to volunteer because
volunteers at a the capacity required to manage
London branch everyone doesn’t exist, he adds. “Plus,
of charity Little many more people came forward than
Village. Below, needed help.”
Hamish and Four months on, and the situation is
Rose Shephard, reversing, fast, as people return to work
founders of and have less time on their hands than
Furlonteer.com when they were on furlough. History
Charlie Bibby/FT shows volunteering also becomes less
appealing the longer crises continue.
“There is something simple and appeal-
ing in the first flush when your elderly
neighbour needs food and can’t get to
the shop. But rebuilding a sense of com-
munity is harder to see and engage
with,” adds Mr Reddish. “If people still
have time and want to give it, now is the
time to come forward.”
One organisation helping to find
opportunities for those with a few hours
to spare is Furlonteer.com, which was
set up by a trio who thought up the
scheme during a lockdown takeaway
curry over Zoom. Hamish and Rose
Shephard — he co-founded Hello Fresh,
a recipe box scheme; she works in
luxury PR — and Sam Tasker-Grindley,
a director at RSM UK, a business advi-
sory firm, figured people with a few
hours to spare could sign up to a data-
base to be considered for a range of roles
from digital marketing and fundraising
to IT and bookkeeping.
The numbers are relatively small
— about 5,000 volunteers have been
matched with 1,000 charity roles
— but they plan to seek funding to
keep going long after furlough
disappears from the everyday
lexicon.
Meanwhile, charities have
launched recruitment drives
to fill gaps left by people who
don’t want to return to their
previous roles as they reopen
high street shops. At aid organi-
sation Oxfam’s bookshop in Green-
wich, south-east London, where I
help out, barely one-third of volun-
teers had returned two weeks after
the store reopened. Another third were
still assessing the risks of catching coro-
navirus and the remaining third have
gone Awol, not returning the store man-
ager’s call. With many tourists staying
away and other shoppers avoiding
the high street, the number of book
browsers has roughly halved.
Luckily for revenues, those who are
venturing through the door are spend-
ing more. “Basket size is bigger, even if
footfall is lower,” says Anne Webb,
Oxfam’s deputy trading director.
In Hampshire, the Mid Hants Railway
— a heritage line that runs steam loco-
motives and is known as the Watercress
Line — is struggling. With about 500
active volunteers to 30 paid members of
staff, it relies on goodwill to keep going.
Simon Baggott, who volunteered
on the heritage line for 20 years before
‘The challenge is to make
sure people can find
ways to get involved
that fits into their lives’
becoming its general manager in Feb-
ruary, says between 20 per cent and
30 per cent of people have yet to return.
Some are staying away because
they have underlying health conditions
and some are nervous about engaging
with visitors.
Mr Baggott, who hadn’t expected
to wind up working full time for the
railway line after a career elsewhere,
says he hopes to attract new recruits
to staff the footplates and shovel coal.
Not that you need to be a steam enthusi-
ast to sign up.
“For a lot of volunteers, it’s not about
the history as much as the sense of
community and doing something that
brings joy to others. Yes, you have to put
some effort in, but you get so much
more back.”
Volunteers span a cross-section of
people, from students to board directors
of FTSE 100 companies, he adds. “The
railway is a great leveller. I didn’t know
that someone was an air vice-marshal
until the other day,” he adds.
Although not everyone will end up
with a paying job at the place they vol-
unteer, most unpaid helpers will get
more than a warm glow from giving up
their time. “Done properly, volunteer-
ing should give the volunteer as much as
it gives the charity or the people you’re
supporting,” says Ms Ratcliffe.
Ms Webb, who also chairs the Charity
Retail Association, says people can gain
new skills. “Those who’ve been out of
the job market for a while can come and
work with others.”
She wants to offer people different
ways to get involved, including working-
from home. She would like to see volun-
teers research products, write descrip-
tions and photograph stock for Oxfam’s
ecommerce operations. “Post Covid-19,
could we be more innovative about
opportunities [to help]?”
Karl Wilding, NCVO chief executive,
agrees. “The challenge is to make
sure people can find ways to get
involved that fits into their lives.” From
running social media accounts to
attending charity board meetings over
Zoom, there are many jobs that can be
done from home.
“We need to modernise or update our
view of what volunteering is,” he says.
“It’s more than just providing transport,
or volunteering at food banks. There’s
a whole range of ways you can use
your time for something that’s socially
useful.”
Ms Ratcliffe used her time at home
during lockdown to raise some extra
cash for Little Village by shaving her
hair. She surpassed her £2,000 target,
raising £15,000. Months later, her hair
is growing, much like her commitment
to the charity.
“When I go back to work full time, I’d
definitely like to carry on helping,
because I think I’d be losing something
otherwise.”
On that topic, I want to
address a rumour. I’ve heard
people say that Thrust only
wants you back because of
money. So cynical! We
envisioned Thrust as one
big family — you should
be here with us, not stuck
at home. I hope more of
our Thrusting family will
be coming back to our
94-storey “home-from-
home” from September. This
webinar is to run through
protocols.
You’ll receive my
handcrafted welcome bag
— a small incentive for you
to take your chances on
public transport. In it are
snazzy face masks.
Personalise them — let
your creativity run wild —
strictly no sequins, glitter
or feathers, though.
Everything has to be
machine-washable.
There’s also half a 2020
Thrust calendar (to be kept
at home to make things
easier for the cleaners),
muffins hygienically sealed
— to be eaten outside, no
crumbs on desks. I need to
remind you that there will be ticket to Farringdon.
zero tolerance on treat
sharing. Adieu Colin,
the Caterpillar.
I urge you to
watch the
Thrusting Forward
video which gives
you an idea of what Meet the tribes them actuaries were
to expect.
Read the series
ft.com/
We will have
multiple entrances
work-tribes
to reduce
congestion in reception.
Don’t read anything into
instructions to some of you
to enter and exit through
the waste area. There’s no
hierarchy here. No, Alistair,
it’s just coincidence those in
the top floors are allowed
through the front.
We want to encourage
spontaneous, unstructured
creative team encounters
that are so vital to
innovation: book sessions a
week in advance and stick
strictly to the cap on
numbers.
First thing you’ll see is the
Hotties, a dedicated team to
take your temperature.
We’ve had some teething
issues. Yes, Jason? Have you
stepped up the weight
training by the way?
the kids can go to weep in
private. Look, I ran 20 miles
from home the other day —
someone has to kickstart the
City economy and I’ve
always had more robust
tolerance for risk than the
rest of my team at Grumble,
Cavil & Grouse.
Anyway I was manhandled
(can I say that?) by the
Hotties after I failed the
temperature check.
First time I’ve failed an
exam since prep school, I
should say.
Pippa: Jason, our advice is
to pause briefly after
exercise, though of course if
you need somewhere
private to warm-down,
Jason, you can use my
office. Roger?
Still in shorts, I see.
Roger, the angry
non-commuter
Just wanted to put it out
there that I’ve spent a small
fortune of my own money on
a state of the art home office
and I have definitely bought
my last Gold card season
Had to shout
repeatedly
at the incompetents
at BT to tune up the
fast-fibre but they
came round in the
end after I convinced
key workers.
Goody bag or no
goody bag, I see no
reason to “thrust
forward”, sideways or back.
If anyone needs advice
on the best broadband
services, I have a spreadsheet
I can share.
Hold on, doorbell — that’ll
be delivery of my studio
quality webcam.
Pippa: Oh! Roger! Thanks
for the input! Perhaps a less
revealing pair of shorts next
time? I tell you what, let’s do
an insta-poll.
Are you with Jason and
gung ho for a return to
Thrust or a stay-homer like
Roger. And here are the
results! Right. That’s
. . . slightly less enthusiasm
than we banked on. Is my
assistant Alice on the call?
Alice, could you cancel the
goody bags?
Monday 31 August 2020
Will diversity survive after the pandemic?
Marshalling employee
support can ensure
valuable activity
stays on the agenda,
writes Maxine Kelly
G
oogle faced a backlash in
May after eight current and
former employees accused
the tech group of paring
back diversity and inclu-
sion programmes in order to avoid criti-
cism from conservatives.
The employees alleged that, since
2018, the team delivering internal D&I
training had been reduced in size and
some vacancies on the team left
unfilled, while some programmes had
been cut back or dropped completely —
a claim Google denied. Melonie Parker,
chief diversity officer at the tech group,
told NBC News at the time: “We’re really
maturing our programmes to make sure
we’re building our capability.”
Later that month, the police killing of
George Floyd in Minneapolis triggered
international Black Lives Matter pro-
tests against racial injustice. This forced
business leaders to look more closely at
not only whether their efforts on diver-
sity and inclusion were adequately sup-
porting their staff, but also whether they
have a positive impact on wider society.
The scramble to slash costs in response
to Covid-19 has piqued concern that D&I
could slip down, or even off, companies’
agendas. At the same time, some leaders
are looking to tap the positive value of
inclusivity, especially as the pandemic
heralds a more fragmented workplace in
which more staff work from home.
The crisis has exposed how some com-
panies view D&I as nice to have rather
than a core value, says Pragya Agarwal, a
diversity consultant and author of Sway:
Unravelling Unconscious Bias. “That’s the
whole problem with considering diver-
sity and inclusivity as kind of a buzzword
or a fluff concept, where people just talk
about it as a box-ticking exercise.”
Companies with diverse leadership
teams have been found to generate
greater revenues from innovation — an
attribute that will prove crucial for busi-
★ FINANCIAL TIMES
Reimagining nesses to emerge from the crisis success-
the workplace fully. Employees are also more likely to
puts inclusivity go the extra mile — or give “discretionary
centre stage effort” — if they trust their employer. As
FT montage; Getty well as potentially damaging a com-
pany’s reputation, crimping workplace
diversity programmes at the same time
as furloughing workers risks eroding this
trust and jeopardising extra effort from
remaining staff at such a valuable time.
The early signs are not encouraging,
however. According to a survey of
global D&I leaders published in May by
McKinsey, the consultancy, 27 per cent
reported their organisations have put all
or most diversity initiatives on hold
because of the pandemic.
A diversity and inclusion expert at one
North American financial institution,
who declined to be named, says while the
business has not reduced its internal D&I
budget, it has cut back its sponsorship of
external events and programmes, many
WORK & CAREERS
postponed after the pandemic. “When
we were looking at the return on invest-
ment, we were looking at, ‘what are we
really going to get out of this relationship,
given the situation we’re in?’”
The company has instead turned its
focus to increasing diversity across its
supply chain, the person adds, and the
inclusion aspect of D&I has been “ele-
vated” across its workforce. “We’ve actu-
ally been working with our employee
resource groups to understand what are
the specific needs of those communities
and how could we help them.”
Workplace winners
The reimagining of the workplace
provides opportunities for certain
groups and puts inclusivity centre
stage. In numbers terms, women argua-
bly have the most to gain as the work-
place recalibrates and the stigma
around flexible working recedes.
Jennifer Brown, founder and chief
executive at JBC, a US-based diversity
and inclusion consultancy, says many
companies recognise that D&I initia-
tives are “a mechanism for generating
belonging in a very uncertain future”.
Not all successful D&I initiatives
require a huge budget, she adds. Busi-
nesses can “marshal” their women or
LGBT+ affinity groups for creative
input. “It is a way of continuing to keep
that drumbeat for the importance of
this stuff going,” she says.
Maxine Williams, global chief diver-
sity officer at Facebook, says Covid-19
has rendered inclusion more important
and it is focusing on this and allyship to
foster greater cohesion across its
employee communities.
“We’ve called for allyship in support
of the rise in xenophobia, especially
among our Asian Pacific Islander and
black communities,” Ms Williams says.
13
Facebook’s employee resource groups
are adjusting activities such as meetings
and summits in response to the pan-
demic. “But we will not be reducing our
commitment to D&I,” she adds.
Debbie Klein, group chief marketing,
corporate affairs and people officer at
Sky, says virtual events allow the UK
broadcaster to be more inclusive. “This is
great because it allows even more people
to access them and we’re no longer lim-
ited by seating space on site,” she says.
Sky says it is continuing to track diver-
sity across its workforce every quarter. It
is conducting monthly surveys to moni-
tor staff wellbeing and assess whether
the company needs to tailor its actions
by gender, ethnicity, sexual orientation,
gender identity, age or ability. In the
wake of the Floyd killing, it has also cre-
ated an internal diversity action group
and an independent external advisory
group to advise on how the broadcaster
can “deliver real and lasting change”.
Workers with disabilities stand to
benefit from remote working, JBC’s Ms
Brown says. Removing barriers of com-
muting and inadequate workplace facili-
ties could tackle underemployment in
this demographic. “There’s just so much
access that was not possible before.”
But the experience may not be as posi-
tive for those with invisible differences:
for example, a consultant in the tech sec-
tor who declined to be named, reports
seeing neurodiverse colleagues struggle
with video conferencing.
Diversity may suffer in the short term
as hiring slows and staff are laid off, but
the longer-term outlook for recruitment
could be better. Companies will be less
likely to “appoint for fit”, says Ms Agar-
wal, as hiring by video means there will
be less emphasis on first impressions and
Employees certain biases will be muted.
Businesses have a “huge opportunity”
with to make D&I a priority, she adds. “What
the pandemic’s done is highlighted some
disabilities of the socio-economic inequalities and
could . . . it’s showcased that we need [diver-
sity and inclusivity] more than ever.”
benefit The pandemic will reveal whether
from organisations view D&I as an asset or a
liability. Those in the former camp are
remote likely to discover how powerful a
diverse and supportive workforce can
working be as they emerge from this crisis.
14
Restoration that sheds new light on Rothko
Architects have been
working to improve the
Houston chapel that houses
one of the most powerful
ensembles in modern art.
By Edwin Heathcote
T
he Rothko Chapel in Hou-
ston, Texas, commissioned
50 years ago by John and
Dominique de Menil, is a
bad building. It embodies
some of the worst of 1970s late-modern
clunkiness, neither light nor deliber-
ately dark, neither elegant nor monu-
mental. It is a bunker without the self-
confidence to be brutalist. Yet it con-
tains one of the most powerful, moving
and unsettling ensembles in modern art
in the form of Mark Rothko’s 14 brood-
ing, bruised-aubergine panels.
The building’s shortcomings have
now been addressed in a major restora-
tion by New York-based architects ARO.
“We probably spent five times as much
time and effort on this restoration and
on repairing the defects as the original
architects did on the whole design,” says
ARO’s Stephen Cassell.
That doesn’t mean that the original
architects had it easy. The building
was to have been designed by Philip
Johnson, the architect kingmaker who
was close to John and Dominique de
Menil, as an ecumenical and non-
denominational sacred space for the
city of Houston. Johnson had designed
their elegant, restrained Houston home
early in his career, in 1948.
But Johnson had severely fallen out
with Rothko over a commission for
paintings for the Four Seasons restau-
rant Johnson was creating at the Sea-
gram Building on Park Avenue in New
York, a building designed by Johnson’s
idol, Mies van der Rohe. It had been a
strange commission for Rothko to
accept, harbouring as he did an intense
distaste for the cigar-chomping pluto-
crats who would be the inattentive audi-
ence for his murals. “I hope to ruin the
Above: Rothko Chapel
in Houston, Texas, with
Barnett Newman’s sculpture
‘Broken Obelisk’ in the
foreground. Above right:
interior of the chapel
with Rothko’s panels
Richard Carson/Reuters; Pat Sullivan/AP
‘Rothko always used
the word “panels”,
never “paintings”, and
they were conceived as
an ensemble pressing
into the space’
★ FINANCIAL TIMES
arts
appetite of every son of a bitch who
ever eats in that room,” Rothko was
famously quoted as saying, making
them “feel that they are trapped in a
room where all the doors and windows
are bricked up”.
In the end the artist sent the murals to
Tate in London, where they are
enshrined in their own room. But, you
might argue, Rothko ended up making
that bricked-up room in Houston
instead. Even though this chapel, an
odd, airless bunker with dingy light, was
specially built to house the Rothkos,
with the artist even making a full-scale
mock-up in a New York studio, it was
nevertheless a terrible place to see
them. The Texas sunlight was too
bright, the paintings degraded, the arti-
ficial light was all wrong and the panels
ended up as oddly flat screeds of colour,
all the wrong highlights on their impasto
(rather than the colour field) picked out
by ropey spotlights.
The original building was in fact
designed by Philip Johnson’s former
associates, Gene Aubry and Howard
Barnstone. “Johnson’s original plans
had a conical tower like [Le Corbusier’s
church at] Firminy Vert. It looked like a
fez,” says Adam Yarinsky of ARO.
“Rothko hated the plans, he wanted
something more humble . . . ironically
it probably would have had better light.”
The chapel was opened in 1971 but
Rothko didn’t live to see it. He commit-
ted suicide in New York in 1970 on the
morning his Four Seasons murals
arrived in London. His death — he was
found in a pool of blood from his slashed
arms in his Bowery studio — imparted
an extra layer of mysticism to his work,
a foreboding and an intuition of death
which is almost impossible to unsee. So
this chapel, one of his last major works,
feels all the more oppressive, all the
more intense.
When I suggest to the architects of the
restoration that the paintings might be
mesmeric and searingly intense but the
building is poor, the answer begins with
a pause and thoughtful expressions
from both Yarinsky and Cassell. There is
no disagreement. Was there ever any
suggestion of knocking the chapel down
and starting again? After another long
pause, I get a categorical “no” from both
architects. “It isn’t about the building,”
says Cassell. “It’s about the experience.
Rothko himself said that, which was
why he didn’t like Johnson’s spire. It’s an
awkward, windowless volume and the
dialectic is between its banality and the
magic that happens inside.”
The real architecture here, then, is
Rothko’s. “He always used the word
‘panels’, never ‘paintings’, and they were
conceived as an ensemble pressing into
A sunnier outlook on climate change
podcasts
Fiona
Sturges
I
n the new series from Gimlet Media
and Spotify, How to Save a Planet, Dr
Ayana Elizabeth Johnson, a marine
biologist and self-anointed “policy
nerd”, joins the journalist and Gim-
let founder Alex Blumberg in investigat-
ing the initiatives and inventions that
could halt the looming ecological catas-
trophe. The title is deliberately optimis-
tic. Right at the start, Johnson explains
that the series is built on the question:
“What are the key things we, humanity,
need to do about climate change — and
how do we make those things happen?”
The opening episode looks at how a
town in Massachusetts gave up its fossil
fuel habit by literally blowing up the
cooling towers of its coal-fired power
station. Somerset, in Bristol County, was
wholly reliant on coal until fracking
came along in the mid-2000s. Half the
price and twice the efficiency, fracking
brought about a sharp drop in the value
of coal and meant that Somerset’s prime
source of income and employment was
in peril.
Enter state representative Patricia
Haddad, who had visited a nearby town
which lost its key industries and found a
new source of revenue in wind farms.
Not only can offshore wind turbines
light up whole cities, Haddad discov-
ered, they are also better for the planet.
Here, Johnson and Blumberg talk to
Haddad and to Jeff Grybowski, former
the space,” says Yarinsky. The artist’s
involvement in the chapel’s proportions
and design ran deep. “Rothko mocked
up a [full-scale] replica of the interior in
a former stable he rented on 69th
Street,” Cassell says. “We went to see
that space and it had wonderful top
light. But there’s a huge difference
between New York light coming through
dirty glass and the light in Houston. So
the top light never really worked.”
The architects collaborated with
lighting specialist George Sexton (who
has worked with institutions ranging
from MoMA to Tate Modern). “George
set up a scale model of the chapel on the
roof of his [New York] studio and we
could squeeze our heads inside and
really understand the different condi-
tions tor the skylight,” says Yarinsky.
If the chapel seems to be about
contemplation, it was equally — and
counter-intuitively — about congrega-
tion and had at its core a mission of sup-
port for the civil rights movement, of
which the de Menils were influential
advocates. “Just as there’s a duality
between the individual and the collec-
tive in the chapel,” says Yarinsky,
“there’s the space between Barnett New-
man’s ‘Broken Obelisk’ and the chapel.”
Newman’s powerful sculpture, sited
nearby in a reflecting pool, makes
explicit reference to the civil rights
movement and the Washington Memo-
rial. The original version of the work
stood in Washington DC, where New-
man had begun its creation in 1963, the
year of the March on Washington that
culminated at the memorial. The de
CEO of Deepwater Wind, about the chal-
lenges of converting sceptics to the ben-
efits of offshore energy.
This is not a sexy subject, but it is
brought to life as a tale of conflict,
money and nimbyism. We learn that
Ted Kennedy was a passionate cam-
paigner against wind farms largely
because his house had an ocean view.
Indeed, coastal dwellers have proved
the biggest obstacle to wind energy on
the east coast of America. Grybowski
reveals how objections to transmission
cables buried 20 feet under the sand on
Rhode Island nearly derailed one multi-
million-dollar wind farm. “We don’t
deserve to be saved,” sighs Blumberg.
The reporting here is thorough and
wide-ranging but the series has its flaws.
There’s a lot of daft chit-chat between
segments — “You made it through half
Blue-sky
thinking: Block
Island wind
farm off New
Shoreham,
Rhode Island
Scott Eisen/Getty Images
Monday 31 August 2020
Menils gifted an edition of the work to
the city of Houston in 1969, dedicating it
to Martin Luther King Jr.
The chapel itself became a meeting
place, a venue for events, launches and
fundraising drives. That tension
between the intensity of the paintings’
privileged place and its status as a freely
accessible, open-every-day-of the-year
experience is a pivotal part of its appeal.
An ongoing part of the new work of
stripping back the chapel to the visceral
experience of Rothko’s work is the
removal of the small shop, desk and
other necessary detritus of an events
space to a discrete neighbouring struc-
ture. Another aspect is the gentle reim-
agining of the site (by landscape archi-
tects Nelson Byrd Woltz) as a more
coherent whole, integrating “Broken
Obelisk” with the path to the chapel.
The point of Rothko’s chapel and the
essence of his work was, of course, direct
experience. I am conducting the inter-
views over Zoom and, although I’m
familiar with the building and have vis-
ited a number of times, I haven’t seen its
new incarnation and am experiencing it
vicariously through descriptions. I apol-
ogise to the architects for not having
seen the results in person, of not being
able to give a proper critique. “Oh, we
haven’t seen it either!” says Cassell.
“New York isn’t allowing travel to Texas
so we’re only seeing photos.”
The visceral gives way to the virtual.
It’ll be good to be there again.
The Rothko Chapel is due to reopen in
September, rothkochapel.org
Mark Rothko
in 1961; he
didn’t live to
see the opening
of the chapel
in 1971 — Getty Images
an episode. How does it feel?” Blumberg
asks Johnson. “I’m feeling super-hosty,”
she replies.
What is clearly an attempt to keep the
mood light while discussing potentially
stodgy subjects sounds awkward and
forced. Given that Johnson is the climate
change expert, you have to wonder why
Blumberg is needed at all. He is great on
other shows such as StartUp and Planet
Money, but Johnson could easily handle
this one by herself.
Still, these are early days for the series
and hopefully its hosts will find a natu-
ral rhythm. We are not short of climate-
themed podcasts howling about the ter-
rible state of things. How to Save a Planet
works largely due to its focus on story-
telling rather than proselytising, and on
highlighting viable solutions. On that
front, it’s a breath of fresh air.
Monday 31 August 2020
Commercial mortgage-backed securities fill a funding gap for developers involved in everything from
hotels to offices and shopping malls. But as delinquencies rise, investors are bracing for losses.
O
ver the course of 150 years,
America’s oldest continu-
ously running hotel has
never been closed for this
long. Yet, as stay-at-home
orders took hold in March, all but one of
the 1,641 rooms at the Palmer House
Hilton in the centre of Chicago began to
empty out, with the hotel eventually
suspending operations on April 28 for
all except a single long-term resident.
Its wide marble staircase now leads
down to a near silent lobby after Hilton,
which manages the property on behalf
of the real estate investment firm Thor
Equities, furloughed more than 90 per
cent of the hotel’s 900 staff.
The fate of the property is not only
emblematic of the severity of the crisis
emerging for the hotel industry but also
of the pressure building across the com-
mercial real estate sector — from small-
town malls to sky-high office blocks —
hitting one of its primary sources of
financing; the $1.4tn market for com-
mercial mortgage-backed securities.
“I don’t think anyone foresaw the dev-
astation that Covid would wreak on
commercial real estate and the CMBS
market,” says Lea Overby, an analyst at
Wells Fargo who has covered the sector
for almost two decades.
CMBS take either one very large com-
mercial mortgage — as is the case with
the Palmer House deal — or bundle up a
group of smaller property loans in what
is known as a “conduit” deal. The mort-
gages are then used to underpin the sale
of layers of fresh debt, with cascading
exposure to the default of the underly-
ing mortgages. The mortgage payments
on the property, or properties, are then
used to repay investors, such as fund
managers and insurers.
Those investors are now bracing for
losses, sitting at one end of a chain of
turmoil that links millions of workers
without jobs or furloughed after hotels,
shops and offices closed their doors, to
building owners in the middle, facing
the prospect of handing the keys over to
their lenders. “This is severe economic
stress,” says Ms Overby.
‘Zero to 60 in two seconds’
When Potter Palmer first built Palmer
House in 1871, the hotel lasted just two
weeks before it burnt to the ground in
the great Chicago fire. Palmer, a local
businessman, rebuilt the property,
financing it with $1.7m in unsecured
debt — believed to be the largest ever
individual loan at the time.
A century and a half later, the financ-
ing for the property has evolved. Thor
Equities bought it from Conrad Hilton
in 2005 for $230m. Following a $170m
renovation, Thor secured a new $330m
mortgage on the property with JPMor-
gan, which was then sliced up and used
by the bank to underpin a CMBS deal
sold to investors in 2018.
As coronavirus spread, revenues at
the Palmer House fell. Thor has not
made its monthly mortgage payment
since April. Instead, it requested a six-
month forbearance on its loan due to
“Covid-19 concerns”, according to serv-
icing notes in a document from Wells
Fargo, the deals’ trustee. The Wells
Fargo document dated August 17 lists
the property as being in foreclosure.
“Default notices were sent to the bor-
rower,” it notes.
“The entire hospitality industry has
been devastated by the pandemic,” said
Thor Equities, in a statement to the
Financial Times.
The impact of the pandemic is being
felt across other property types too.
Malls remain empty as shoppers’ move
online. Office blocks face an uncertain
future as more people work from home.
Renters in apartment blocks face chal-
lenges as government programmes to
support consumers dwindle.
Approaching the end of August,
almost a quarter of all hotel loans bun-
dled into CMBS had failed to pay their
mortgage for at least 30 days — classi-
fied as delinquent — followed by 15 per
cent of retail loans, according to data
from Trepp.
Bond investors have responded
accordingly. In the CMBS deal backed by
the Palmer House Hilton, the original
triple-B-rated tranche — signalling a
reasonably safe “investment-grade”
asset — has slumped to below 80 cents
on the dollar. Moody’s has cut the debt
to a junk rating.
“In 2009 it took some time before we
saw significant commercial real estate
delinquencies,” says Alan Kronovet,
head of commercial mortgage servicing
at Wells Fargo, declining to comment on
the Palmer House loan specifically. “In
this pandemic we went from zero to 60
in two seconds.”
Filling a funding vacuum
In February 1994, shortly after he had
struck one of the first CMBS deals,
Ethan Penner threw a weekend event
for the emerging industry at the Boca
Raton Resort & Club in Florida.
By Joe Rennison
Pandemic exposes ‘severe
stress’ in CMBS market
‘I don’t think anyone
foresaw the devastation
that Covid would
wreak on commercial
real estate and the
CMBS market’
Outstanding US commercial
mortgage-backed securities
$tn
Private label Agency
1996 2000 05 10
* Agency backed CMBS encompass deals structured
by government agencies such as Fannie Mae and
Freddie Mac.
2020 figures as at Jul 1 while all other years as of Dec 1
Source: Bank of America
★ FINANCIAL TIMES
FT BIG READ. PROPERTY
For the previous three years he had
worked to bring together commercial
real estate owners and bond investors
that up until then had no cause to have
any dealings with one another. That
night, Elton John played for two and half
hours to 500 guests, says Mr Penner,
who is widely credited as the architect of
the CMBS industry.
The market grew out of the decade-
long savings and loans crisis that began
in the mid-1980s, and which saw the
demise of over 1,000 savings and loans
institutions crucial to financing com-
mercial real estate. It left a vacuum in
funding for the industry.
“All the capital providers abandoned
the business at the same time,” says Mr
Penner. “The real estate industry found
itself without a lender.”
While some in real estate turned to
public equity markets, Mr Penner
thought CMBS could provide a solution.
He joined Nomura in 1993 with the
intention of developing the market.
The basic mechanics of CMBS remain
much the same as they were in those
early deals. Lenders, often banks,
originate loans that are sold to a trust.
The changing spreads for CMBS CMBS delinquencies
tranches based on rating Delinquency rate, 2020 (%)
Per cent, by rating
1.4 AAA AA– A– BBB
1.2
12
1.0
0.8 10
0.6 8 before, had been sufficient.”
0.4
6 10
0.2
4 delinquency rate
0 5
15 20
2 Office
0 0
Dec Mar May Jul Aug
19 20 20 20 20
Source: Wells Fargo
The trustee effectively acts on behalf of
investors that buy bonds backed by the
payments on the loans. A master serv-
icer is appointed to collect the payments
and deliver them to the trust.
There are three main master servicers
in the US — Wells Fargo, KeyBank and
Midland Loan Services. If borrowers fail
to pay, the servicer will advance the
funds up to the value of the property col-
lateralising the loan. Most of the debt is
rated triple-A.
The market grew rapidly into a
$900bn industry — responsible for over
50 per cent of commercial real estate
funding before the 2008 financial crisis
— according to data from Bank of Amer-
ica and the Commercial Real Estate
Finance Council. Much as it was for resi-
dential mortgage bonds that fuelled the
economic downturn, the next few years
proved a reckoning for the loose under-
writing and weak protections that had
taken hold in the boom years.
“Over time the standards in the mar-
ket reduced and reduced,” says Joel
Ross, a veteran of the hotel CMBS indus-
try. “By 2007 if you were breathing you
could get a loan.”
25
Lodging*
20
15 Retail
Overall US CMBS
Multifamily
Industrial
Jan 2020 Aug
* The lodging category is largely made up of hotels
Source: Trepp
FT montage; Dreamstime
In the decade since, analysts say
underwriting in the industry has
improved and rating agencies have
begun requiring more protection for
investors in the highest rated tranches.
What’s more, the dominoes of deriva-
tives and financial alchemy that toppled
the housing market in 2008 are less pro-
nounced for commercial mortgages.
But vulnerabilities remain.
Moody's warned last year that the
protection from defaults for higher-
rated tranches of conduit CMBS deals
was too low, saying the market had
stopped soliciting their ratings as they
became more stringent.
Ahead of the last downturn, this
default protection for the average triple
B-rated bond sat at just above 3 per cent
of the loan balance. It means that 3 per
cent of the total owed by borrowers
underpinning a CMBS deal could
remain unpaid and triple-B tranche
investors would still be repaid.
Analysts and investors say that has
now risen to around 7 per cent. Wells
Fargo analysts anticipate overall losses
rising to between 6.5 per cent and 8.7 per
cent over the lifetime of a typical CMBS
deal. “When we are talking to investors
we are very upfront that a lot of triple Bs
will take a loss,” says Ms Overby, “and
some will take a big loss”.
Kevin Fagan, a senior credit officer at
Moodys, says such losses are exactly
what the rating agency had tried to warn
against. “We did not think the enhance-
ment going into this crisis, for years
For bonds backed by a single, large
mortgage, the story is a little different.
Credit enhancement is more varied,
depending on the specifics of the deal,
but it is normally much higher due to
the greater risk of being dependent on
the performance of just one property. In
the case of the Palmer House Hilton,
investors in the triple-B-rated bond are
15
protected from almost 33 per cent of
losses, according to the trustee report.
Edward Shugrue, who runs a $300m
CMBS fund at RiverPark, the Kansas
City-based fund manager, is “exceed-
ingly comfortable” holding the Palmer
House backed debt. He does not expect
Thor to recover and repay the mortgage.
Instead he anticipates the storied prop-
erty will be sold and that he will get his
money back. “This hotel has lived
through the Spanish flu and guess what,
it is still standing,” says Mr Shugrue.
“Palmer House is always going to exist.”
Investors in other properties are more
sceptical. The Destiny Mall in Syracuse,
New York, is one of the largest regional
shopping centres in America. The tri-
ple-B-rated tranche of the CMBS backed
by the property has been downgraded
by Kroll to triple C, implying a high like-
lihood that it will default. Even the dou-
ble-A-rated tranche has slipped to a
junk rating of double B.
The pressure on America’s malls has
been accelerated by Covid-19 as more
shoppers move online. The properties
are also harder to repurpose, say ana-
lysts, impinging on the possible recov-
ery value to bond investors if the malls
are sold. It’s a similar story for some
hotels. The trustee documents note that
Palmer House has had an appraisal of its
value that came in at almost $30m less
than the value of the mortgage.
“Why would you want to own these
properties?” asks Mr Ross, “what are
you going to do with them?”
‘A bridge to Covid’s end’
The pain in the market has led to calls
for assistance from Washington. Other
industries have received help, so too
should commercial real estate, argue
industry groups.
Thor Equities said that Palmer House
‘This hotel has lived
through the Spanish flu
and guess what, it is still
standing. Palmer House
is always going to exist’
had so far been ineligible for govern-
ment support, like many other proper-
ties. “We are hopeful the government
stimulus plan will help these places of
employment for so many individuals
and numerous adversely affected com-
munities,” the company added.
The Federal Reserve has stepped in to
purchase some triple-A-rated securities
of deals but proposals for a more sub-
stantial intervention pose problems.
Critics, both inside and outside the
CMBS industry argue that a bailout
would simply protect institutional prop-
erty owners — like private equity firms
and real estate companies — from
losses, while putting taxpayer money at
risk and not helping the unemployed.
“The real estate industry wants to bail
out borrowers who knew exactly what
they were getting into with these loans,”
says Marty Leary, research director at
Unite Here, a union for hospitality
workers. “Don’t say this is about
employment. This [support for CMBS]
will not bring back a single job.”
There are more structural issues as
well. CMBS tend to prohibit mortgage
borrowers taking on more debt, which
has been the government’s proposed
solution in other areas of the economy.
Instead, lobbyists are calling on the
government to lend money at a fixed
interest rate through what is known as
preferred equity. The Helping Open
Properties Endeavor bill has been intro-
duced in the House of Representatives
but has yet to be enacted. Essentially, it
is asking the US government to lend
money to ailing properties and then to
take losses ahead of bondholders should
things turn sour. “The question is
whether this is a bridge or a crutch,” says
Lisa Pendergast at the CREFC. “We see it
as a bridge to Covid’s end.”
Even without additional government
aid, there are glimmers of hope. The
price of debt in the CMBS markets has
rebounded from its nadir in March, with
the recovery most pronounced in the
higher-rated tranches. New deals —
mostly avoiding sectors worst hit by
coronavirus — have been sold, breath-
ing new life into the CMBS market.
The industry is far from being on a
firm footing, however. Even in the best-
case scenario, with a broad economic
recovery in the US, office properties will
struggle to repay rent if businesses scale
back. Hotels catering to conferences will
have to adjust if companies stop funding
business trips. It means CMBS bond-
holders may still be left holding the bag.
“We could simply have less demand
for commercial real estate,” says Ms
Overby. “My biggest fear is that the
sharp rebound we are hoping for doesn’t
materialise. If it doesn’t come there will
certainly be another leg down within
commercial real estate.”
16
MONDAY 31 AUGUST 2020
Shinzo Abe’s legacy must
not be squandered
Retiring prime minister has brought new ideas and energy to Japan
If things had gone according to plan,
Shinzo Abe would have stepped down
as Japan’s prime minister next year —
still enjoying the afterglow of a success-
ful Tokyo Olympics and with a revived
economy as his legacy. Instead, ill
health and coronavirus have rewritten
the script.
Sadly, a debilitating illness has forced
Mr Abe to leave office early. The Olym-
pics have been postponed, and may
ultimately be abandoned, because of
Covid-19. And the pandemic has also
wiped out many of the economic gains
of the Abe years.
Despite that, Mr Abe has reason to be
proud of his legacy. He has become the
longest-serving prime minister in post-
war Japanese history. This is more than
a personal landmark. Nearly eight
years in office have given him the
chance to put his stamp on Japan. By
centralising power in the prime minis-
ter’s office, Mr Abe was able to compel
the cautious Japanese bureaucratic
state to experiment with radical new
economic policies. After decades of
near-stagnation, deflation and ever-
rising debt, there was a clear need to try
something new.
“Abenomics”, as it swiftly came to be
known, did not achieve all of its goals.
In particular, Japan’s central bank’s
programme of massive buying of gov-
ernment bonds failed to achieve its aim
of pushing inflation up to 2 per cent a
year. A decision to increase consump-
tion tax from 5 to 10 per cent cancelled
out some of the stimulatory effect of
the bond-buying programme. None-
theless, economic growth and employ-
ment both improved in the Abe years,
partly thanks to a weaker yen. And
there has been no debt crisis, despite
the warnings of the critics.
Although Mr Abe has roots in the
most conservative wing of the ruling
Liberal Democratic party, he has also
pushed Japan towards more liberal
Britain’s ethnic wealth
gap needs closing
Inequality reflects historical prejudice but there are no quick fixes
As Britain tries to get to grips with eth-
nic inequality there is one outstanding
item that deserves more attention: the
wealth gap. The median black Carib-
bean household was worth £89,000 in
the middle of the past decade com-
pared to £282,000 for a white British
household, and £266,000 for an Indian
household, mostly made up of housing
and private pensions. Black African
and Bangladeshi households had the
lowest of just £24,000 and £22,000,
respectively. These figures are even
more shocking as around three-fifths
of black Britons live in London, home
to some of the world’s most expensive
real estate.
Partly the gap reflects age. Indian
households in the UK are older, on
average, than Bangladeshi or African
ones: older workers have more time to
accumulate wealth. Meanwhile those
who bought homes before the early
1990s have enjoyed a windfall thanks
to the secular rise in prices since. The
figures, too, do not reflect entitlements
to social housing and the state pension:
black Britons are most likely to live in
social housing.
Primarily the gap reflects historical
discrimination — inequalities in wealth
compounded over time. That is espe-
cially true of access to good jobs: lower
incomes mean less opportunity to save.
On average black workers earn around
9 per cent and Bangladeshi workers 20
per cent less than white British work-
ers. Black students are the least likely
to get three good A-levels — in part a
reflection on wealth inequality as
houses close to good schools are more
expensive. Residential requirements —
requiring those on social housing wait-
ing lists to have lived in an area — as
well as racism made it harder for black
and ethnic minority families to qualify
for social housing in the 1970s. This, in
turn, had a knock-on effect on home
ownership after the introduction of the
social attitudes. With the country’s
population shrinking, the prime minis-
ter understood the need to expand the
potential labour pool — by making the
workplace more welcoming for
women. His espousal of “womenom-
ics” was also a blow for personal free-
dom. The policy has arguably been
stronger on rhetoric than actual practi-
cal effect. But Japan is a very conserva-
tive place and Mr Abe has started to
move things in the right direction.
It is a similar story on immigration.
By the standards of other advanced
economies, Japan remains unwelcom-
ing to migrants and refugees. But,
driven by economic need, the Abe gov-
ernment has brought in guest workers,
and begun to shift the terms of the
political debate. A more open approach
at home has been matched by a more
outgoing Japan overseas.
At a time when globalisation and
open trade are under threat, the Abe
government has pushed forward with
significant new trade deals. It has con-
cluded a Japan-EU trade pact and is
likely to soon sign an agreement with
the UK. When Donald Trump’s Amer-
ica pulled out of the Trans-Pacific Part-
nership — a big multinational trade
deal — the Abe government persuaded
the other signatories to keep the agree-
ment alive, as the repackaged CPTPP.
Given Mr Abe’s background in
nationalist politics, his openness to
social reform and his internationalist
foreign policy have been surprising to
some. But he has been intelligent
enough to understand that in today’s
Japan, a nationalist also needs to be
open to radical change.
The danger for Japan, in the post-Abe
era, is that a period of political instabil-
ity will lead to a reassertion of the
power of the bureaucratic state — with
all the inertia and caution that has bred
in the past. The boldness that marked
the Abe years needs to continue.
“right-to-buy” policies in the 1980s. In
2018, some 20 per cent of black Afri-
cans owned their own homes and 46
per cent of Bangladeshis compared to
68 per cent of white Britons.
Many black Britons distrust the
financial industry. The Windrush gen-
eration set up the first of the UK’s credit
unions in response to the racism they
faced from traditional banks and many
Afro-Caribbean women still prefer
community-run savings clubs over
mainstream banks. Black entrepre-
neurs report finding it harder to raise
funds. One study by Warwick Business
School found they were charged higher
interest rates. Other reports found no
evidence of explicit discrimination but
the higher rates reflected lower sav-
ings; supposedly neutral credit deci-
sions, including those made by algo-
rithms, can reinforce bias.
The financial sector cannot restruc-
ture society but it can be more aware of
perpetuating unfairness: British banks
do not routinely gather data on ethnic-
ity for loan and mortgage applications;
that should change. Regulators could
more proactively investigate discrimi-
nation against borrowers. The financial
industry could do better at working
with and learning from community-
run groups too, like credit unions.
Ultimately the impetus needs to
come from government policy. Colour-
blind egalitarianism, such as New
Labour’s child trust fund which gave
parents of every child a £250 savings
voucher at birth — the first 18-year-
olds will be able to access them this
week — can disproportionately help
the most disadvantaged groups. Brit-
ain’s tax system, too, should be exam-
ined, for example the treatment of resi-
dences. There is no magic solution to
end ethnic wealth inequality: it can
only be eradicated in the same way it is
created, over decades and with the co-
operation of the whole of society.
★ FINANCIAL TIMES
Letters
Decarbonisation must keep investors in mind
Henry Mance is absolutely right to say
that ambitious climate action goes
hand in hand with traditional
Conservative principles (Opinion,
August 25). We can also, however,
harness the power of capital markets to
finance solutions to the climate
emergency. Again, this is not out of line
with Conservative ideology.
In recent months, we have seen a
massive uptick in sustainable finance
regulation. In doing so, financial
regulators are providing the enabling
conditions to grow green finance. This
week, the UK’s Department for Work
and Pensions announced measures to
ensure pension funds are giving
Scottish Tories are failing
to make case for union
I see that Douglas Ross, the new leader
of the Scottish Tories, continues to
parrot the increasingly tired trope that
the 2014 independence referendum
was a “once in a generation vote”
(“Scots Tory leader admits error in
fight for the Union”, August 26).
He would do well to refer to the
report of the Smith Commission —
hastily convened in the aftermath of
the referendum to make good the
unionist parties’ “vow” to deliver
“permanent and extensive new
powers” for the Scottish Parliament in
the event of a vote to remain in the UK.
This report, agreed by all five parties
represented in the Scottish Parliament,
stated “nothing in this report prevents
Scotland becoming an independent
country in the future should the people
of Scotland so choose”.
Scottish politics realigned after 2014
with independence becoming the main
cleavage, with the Scottish National
party occupying the centre-left ground
in urban Scotland once dominated by
Labour. A secondary realignment
occurred as a result of Brexit with the
pro-independence vote becoming more
closely aligned with the pro-EU vote.
The potential constituency for
independence is consequently rather
larger now than it was in 2014.
In these circumstances Mr Ross’
return to “muscular unionism” looks
more like a strategy designed to shore
up his party’s core vote in next year’s
Holyrood elections than a serious
attempt to create a coherent case for
the union.
Slapping Union Jacks on projects
funded by Westminster is unlikely to
win many hearts or minds. Symbols
matter, and Mr Ross might recall the
fate of pillar boxes that were
vandalised — even blown up — when “E
II R” was embossed on them. (There
had been no Elizabeth I of Scotland.)
And that was in the 1950s when the
Unionist party was able to win 50 per
cent of the vote.
Professor Mark Stephens
Bennington, Lanarkshire, UK
Help Americans to quit
jobs in zombie companies
James Politi outlines the Trump
administration’s attempts to continue
assisting airline workers after their
benefits expire (“White House
considers executive action to help
airline employees”, August 27).
Mamta Badkar and Andrew
Edgecliffe-Johnson report that the
World Economic Forum and other
organisations are postponing or
cancelling large gatherings in 2020 and
What I learnt about racism over two decades in banking
Shayne
Ebudo
P
rotests this week in Kenosha,
Wisconsin, brought police
violence and discrimination
against African-Americans
back into the headlines. In
response to the uproar over these injus-
tices, Wall Street chief executives are
scrambling to assure us they are tack-
ling the acts of everyday racism experi-
enced by professionals in their own
industry. They say: “we can do better”.
I’d like to help by telling my own story.
In the mid 2000s, I worked in equity
sales for an investment bank in Paris. I
had a client I’ll call “Pete”, who loved to
party. After one big night, we swayed
tipsily on the Champs-Elysées and bade
each other farewell. During Pete’s last
few trips, we had formed a bond of
friendship. “Don’t forget, we have a 9am
tomorrow,” I said. Pete leaned on his
taxi and his expression became solemn;
he knew that I was calling it a night. He
fixed his glassy blue eyes on me and
said, “You’re all right for a n*gger.”
This kind of experience wasn’t unu-
sual for me. My first job out of university
was at a bank in the City of London. A
adequate consideration to climate
issues. For the step change we urgently
need in climate finance, government
needs to design decarbonisation
policies with investors in mind.
For transport, it could scale up
private finance-matching efforts, such
as its Charging Infrastructure
Investment Fund to accelerate the
transition to electric vehicles. For
housing, working with industry to
develop a sustainable housing label
that could attract real estate investors
to finance energy efficiency
improvements. And to improve the
UK’s ability to store carbon and reach
tree planting targets, the government
Lebanon under the French mandate:
traders in Beirut’s business district
2021 (“WEF postpones Davos 2021
over coronavirus fears”, August 27).
With travel collapsing, airlines need
fewer workers going forward. Rather
than subsidising employees to remain
at zombie companies, the government
should provide incentives for them to
seek viable jobs.
Willem Thorbecke
Senior Fellow, Research Institute of
Economy, Trade and Industry
Tokyo, Japan
Businesses are reluctant
to move HQs overseas
Paul Hallwood (Letters, August 20)
raises the issue of how American
companies will react to the Trump
administration’s exercise of hegemonic
power to close down China’s challenge.
He suggests they may decide to move
their headquarters overseas, but apart
from the Bata company that moved its
HQ from what is now the Czech
Republic I know of no other
international company that has done
so unless by takeover.
This is probably not coincidental.
Modern capitalism is a fusion of state
and capital in different mixtures and
while capital in its financial form is
mobile and in its physical form
fungible its domicile is not.
Why so? I would suggest that the
overheads that private capital
outsources to the state, such as
schooling and to some extent housing,
are too essential to its profitability to
forsake. True, labour in developing
countries can be cheaper, but rarely as
productive unless working alongside
modern capital-intensive methods of
production and distribution.
John Ure
Director, TRPC, Singapore
Fellow of the Centre of Urban Studies and
Urban Planning, University of Hong Kong
few months in, I was working for a sen-
ior trader, “Rick”. My main role was to
fetch his team breakfast and lunch. On
one occasion, some coffee spilled on to
Rick’s food. He pulled out a soggy hash
brown like it was a dead goldfish, glared
at me, and said: “How the f*ck are you
even working here?”
For Rick, my rookie errors were not
learning experiences, but failings. His
constant bullying shattered my confi-
dence and, as one of two black people on
a trading floor of hundreds, I felt out of
place and helpless. The goodwill I had
built with other bosses evaporated.
Weeks later, I was offered some money
and told to go.
Nonetheless, I stuck with finance and
worked my way up through banks in
London, Paris and New York, to director
level. One thing was constant — there
were few-to-no black people but many
Petes and Ricks.
At one bank, where less than 2 per
cent of the trading floor was black, I
joined a team led by “Charlotte”. I hit the
ground running and she was thrilled
with my performance. But as I rose to
become one of the highest revenue gen-
erators in our group, her attitude
changed. That year, I beat my targets
and brought in more revenue than
Charlotte, but she paid me the lowest
bonus of my team — and the second low-
est of my career. I complained to her
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
could try a guaranteed pricing
mechanism like the contracts for
difference that have worked so well for
the power sector.
None of this is to say that
decarbonisation will simply be a series
of win-wins and that the Treasury will
not have to step up its ambitions on
funding a green recovery. But in the
City of London, the UK is lucky enough
to have a unique asset to finance the
fight against climate change, right on
the doorstep of Whitehall.
Will Martindale
Director of Policy and Research,
Principles for Responsible Investment
London E1, UK
Lebanon’s politics can be
traced to French mandate
In reference to your article “Lebanon’s
political elite ‘in denial’ as government
talks slow” (August 27) the Lebanese
sectarian power-sharing system does
not date “from the end of the civil war
in 1990”.
The Taif accords that ended that
conflict only adjusted the sectarian
power-sharing system that was
originally set up with the
encouragement of the French
mandatory authorities from 1920
onwards. The purpose was to establish
a Maronite dominated state which
would be loyal to France.
In consequence, Lebanon has had a
full century of sectarian government.
This is why corruption and the power
of sectarian patronage are so deeply
entrenched in the region’s oldest
surviving democracy.
The French mandate may seem
ancient history, but (like the British
mandate in next-door Palestine) it has
to be studied properly to understand
the tragic Middle East of today.
John McHugo
Hythe, Kent, UK
Printing money is the best
way to settle Covid debts
Robin Harding (“Leave public debt
worries for another day”, August 26)
sensibly suggests that now is not the
time to worry about rising levels of
public debt, with interest rates so low
and economies on the floor.
He points out that, in the case of
Japan, the government bonds held on
the balance sheet of the Bank of Japan
are effectively the Japanese
government owing the bond debt to
itself. Why not draw the obvious
conclusion that the best way to deal
with such debt is to put a line through
those entries on each side of the
balance sheet? The level of public debt
would be reduced without the taxpayer
having to pay anybody anything, and
with nobody being the poorer.
The same goes for the Covid
emergency funding around the world.
This amounts to printing money. There
are only two arguments against
printing money in this way, the risk of
inflation and moral hazard. Neither is a
real risk. If inflation becomes a risk,
the elevated levels of commercial bank
holdings at the central bank can be
immobilised by raising reserve
requirements. Can anybody explain
why the alternative, requiring future
generations to pay off vastly increased
bond debt through higher taxation, is a
better way of dealing with the issue?
Mark Hofman
Charlbury, Oxfordshire, UK
boss, who agreed I had been treated
unfairly, but suggested I suck it up or he
would help me leave with my stock. The
game was rigged. I cashed out and left.
In a career that spanned two decades,
I only ever met one diversity officer, one
black managing director and a handful
of black fund managers. In that time I’ve
met many qualified black people whose
resumes never made it past the human
resources officer, and others who
became so frustrated that they quit.
Recently, I have begun to tell people
When CEOs proclaim that
they can do better, the
mantra sounds hollow to
black employees
my story, and collect those of others. A
Pakistani trader friend told me that
when he was a junior, his team (the
same one Rick built) nicknamed him
“The Shoebomber”. A black former col-
league said Charlotte would ask her to
babysit for her even though she was a
single mother with her own kids. When
she complained to HR about being
treated like a mammy, they told her to
suck it up.
When CEOs proclaim that they can do
better, the mantra sounds hollow to
Monday 31 August 2020
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
It’s time to reconsider
full reserve banking
Fractional reserve banking is a system
in which only a fraction of bank
deposits are backed by actual cash on
hand and available for withdrawal. The
system is risky (Opinion, July 23). For
hundreds of years it has resulted in
bank failures with depositors losing
their money. The arrival of taxpayer-
backed deposit insurance in the 1930s
and multi-billion-dollar bailouts of
banks was not a big improvement
because it meant banks received state
support, while other lenders who lend
about as much as banks do not.
Moreover, depositing money at a
bank with a view to the bank earning a
return for you is the same as depositing
money with a stockbroker for the same
purpose in that both activities are
commercial in nature, and it is not the
job of taxpayers to support commerce,
absent very good social reasons for
doing so.
As for the alleged merit of fractional
reserve banks, namely that they create
money and liquidity, unfortunately
they do so in a procyclical manner,
which means central banks and
governments have to counteract that.
Add to that the fact that private banks
are totally incapable of creating the
huge amounts of extra money needed
in crises like the present Covid crisis.
Hence stripping private banks of
their ability to create money would do
no harm, as Martin Wolf, your chief
economics commentator has argued.
We therefore wish to see the
alternative to fractional reserve, that is,
full reserve banking, given much more
serious consideration for various
reasons, including some or all of the
above.
Jorg Guido Hulsmann
Professor of Economics, Angers University,
Angers, France
Patrizio Laina
Chief Economist, Finnish Confederation of
Professionals (STTK), Helsinki, Finland
Joseph Huber
Emeritus Chair of Economic and
Environmental Sociology, Martin Luther
University, Halle-Wittenberg, Germany
Ib Ravn
Senior Lecturer, Aarhus University,
Copenhagen, Denmark
Bryan Gould
Vice-Chancellor, Waikato University
Hamilton, New Zealand
There’s one thing missing
from this shopping list
All well and good that David Cote
(“Government should stay out of
supply chains”, Opinion, August 27)
wants the US to “invest in education,
develop world-class infrastructure and
increase investment in research”.
He might have, but didn’t,
recommend that the country would
benefit from a modest increase in taxes
to pay for it.
Sim Gurewitz
El Cerrito, CA, US
Bond’s creator is read for
his humour and style
Robert Armstrong (August 22) is
absolutely mistaken when it comes to
Ian Fleming. I and many others like
me, still read him for his style, humour
and breathtaking descriptions.
He is easily one of the greatest
English writers of the 20th century
and Penguin Random House is not
making a blunder in issuing vintage
editions.
Ganesh Melatur
Roanne, France
black employees. While banks have
made commendable efforts to hire and
retain more women, the number of sen-
ior black executives on Wall Street has
remained flat at under 3 per cent for the
past decade.
If banks are serious about supporting
black employees, they should empower
their diversity officers to speak up;
remove bosses who are resistant to
change; and tie their remuneration to
hiring and retention targets — the ulti-
mate test of accountability for a banker.
Over the years, I’ve replayed that
night in Paris and wondered if I could
have reacted differently, because as Pete
entered the taxi, I was too numb to say
more than “See you tomorrow”.
If I could do it again, I’d say something
like this. “Pete, imagine if you were held
to a higher standard and had to work
harder than your peers just to stay in the
same spot; that despite being told in
your first job that you didn’t belong,
you’d clawed your way back up through
a system that treated you with apathy.
Then, just when you felt that you were
being considered an equal, someone
you considered a friend reminded you
that you were just another n*gger.”
Of course banks can do better, they
can hardly do worse.
The writer is an entrepreneur and corpo-
rate adviser
Monday 31 August 2020
Europe needs to avoid a ‘decade of forbearance’
europe
Wolfgang
Münchau
E
ach time the eurozone is hit
by crisis it has ended up one
notch weaker. The financial
crash of 2008 hit the banking
sector. The eurozone debt cri-
sis impaired the sovereign debtors of
southern Europe. The pandemic lock-
downs will hit private companies and
employees hardest. Whereas previous
crises were mainly macro, this one is
predominantly micro. Corporate insol-
vencies and higher unemployment will
be its lasting legacies.
Eurozone policymakers, to their
credit, managed to avoid some of the
more egregious mistakes made in the
past. They were right to support compa-
nies through credit guarantees, and
workers through subsistence payments.
The European Central Bank was also
Arm’s destiny
is vital for
Britain’s future
TECH NOLOGY
John
Thornhill
O
ne of the more alluring
arguments for Brexit was
that it would allow Britain
to shed outdated 20th-
century European concep-
tions of pooled sovereignty like some
raggedy snakeskin, emerging sleeker
into a shinier new world. Farewell
regional barriers, entangling treaties,
overly restrictive rules and regulations!
Hello the newly liberalised, digitally
interconnected, global Britain!
Reality is already proving different to
the promise. As the UK is rapidly discov-
ering, the limitations on sovereignty in
the 21st century are pressing in on the
nation state, particularly on vital tech-
nology issues amid escalating tensions
between the US and China.
Giant US tech firms, including Google,
Amazon and Microsoft, already control
much of the world’s critical data, the
lifeblood of a modern economy. Wash-
ington has just bullied Britain into
reversing its decision to use the Chinese
telecoms company Huawei to build its
5G network. And now Nvidia, the US
company that has overtaken Intel to
become the world’s most valuable chip-
maker, is in talks to snap up Arm,
one of the precious few, globally
Now is not the time for the EU to reset relations with Moscow
Arseniy
Yatsenyuk
T
he civil uprising in Belarus
has summoned a vast sense
of solidarity from around
the world. But in practical
terms, what is urgently
needed is a comprehensive new western
strategy towards Europe’s east and
those nations unprotected by EU and
Nato membership.
Currently, the formula that the west
uses when treating Europe’s east
involves the notion of maintaining a cer-
tain “social distance” — whatever
sophisticated political name this dis-
tancing is given, be it “EU association
agreement” or “eastern partnership”.
Europe’s east is a very large region,
and its most far-flung eastern borders
reach up to the Caucasus. However,
since the late 1980s several extraordi-
nary processes have taken place across
it. There has been a revival of national
right to widen its credit support and to
extend asset purchases. So far, nobody
has committed any catastrophic mis-
takes. But this may be about to change.
The biggest danger now is that gov-
ernments do in 2021 as they did in 2020.
They are right to maintain a high level of
discretionary fiscal support, but the
emphasis needs to switch from protec-
tion towards productivity growth.
For example, Germany’s decision last
week to extend short-time work
schemes until the end of 2021 was
wrong. Exemptions for corporate insol-
vency have also been extended. Compa-
nies will now be spared the obligation to
declare insolvency simply on the
grounds that they have too much debt.
This will be the decade of forbearance.
The politics behind this are clear
enough: 2021 is an election year in Ger-
many, and nobody in the governing coa-
lition wants to risk voters’ wrath. Even
so, it makes no economic sense to pro-
tect jobs in sectors that were already
under threat before the crisis — coal
mining, car components suppliers and
some parts of the chemical and mechan-
ical engineering industries. Germany
relevant, UK-based technology firms.
According to Hermann Hauser, the
tech entrepreneur and investor who
helped create Arm, any acquisition by
Nvidia would result in the company’s
headquarters shifting from Cambridge
to the US, compromise its standing as an
independent technology licenser and
enable Washington to vet its customer
list on grounds of national security. This
would be another major step in turning
Britain into an “American vassal state,”
Mr Hauser thundered in a letter to the
FT last week.
In truth, Britain lost most of its con-
trol over Arm when the company was
bought by Japan’s SoftBank in 2016 for
£24bn. Fund managers in the City of
London have never been savvy at valu-
ing tech companies. And Masayoshi
Son, SoftBank’s founder, whose busi-
ness is to arbitrage the differences in
valuations between public and private
markets, spied a bargain. He paid a 43
per cent premium to the market for a
company that he said could be worth
more than Google.
Arm’s technology is ubiquitous yet
invisible. As a computer chip designer, it
is one of the world’s most valuable intel-
lectual property companies, boasting
licences with 500 companies, from
Apple to Huawei. Between all smart-
phones, connected cars and other elec-
tronics there are an average of 20 Arm-
designed chips in use for every person in
the world
To mollify some of Arm’s outraged
supporters at the time of acquisition, Mr
Son promised three things. He pledged
identity that has overcome postcolonial
heritages; a growing awareness of civil
liberties as well as the creation of insti-
tutions to maintain them; and a search
for progressive models of economic
development and security protection.
Unlike the west, Russia has a compre-
hensive vision of our region and its
importance. Whether in Moldova,
Ukraine or Belarus, Moscow seeks to
establish effective control and create
new bridgeheads to help it expand its
influence westwards. This is how Rus-
sian president Vladimir Putin envisages
the path towards the recreation of the
Soviet Union that he so desires.
There are no magic remedies that to
properly cure this “Russian problem”.
But, as a realist, I believe there exists a
sequence of practical steps that can be
taken. All that is required is the political
will to implement them. The events in
Belarus, and the chance that it may fall
under Russian influence indefinitely,
requires action from the west and
Ukraine. It is time to act, not to hesitate.
Most important, I urge the EU to treat
the civil uprising in Belarus as an inte-
gral part of the European process and
★ FINANCIAL TIMES
Opinion
should instead support private and pub-
lic investment in mobile telecommuni-
cations, artificial intelligence and green
technologies.
The consequences of faltering pro-
ductivity are apparent across the euro-
zone, especially in Italy. Ex-ECB chief
Mario Draghi was never more right than
in his recent comment that it is impor-
tant to focus public spending on helping
The eurozone is switching
from a long period of
abstention and going
straight back to the bottle
the young get through the crisis and on
high-tech research. Sadly, Italy suffers
from a triple misfortune: a particularly
steep decline in productivity growth;
being locked into monetary union; and
an overdependence on tourism, which
accounts for around 13 per cent of gross
domestic product, or around €200bn a
year.
I spent a couple of weeks in various
to double the number of Arm’s employ-
ees in Cambridge to 3,500 by 2021, leave
management mostly to its own devices
and ensure the company’s neutrality as
a licenser. Even the doubters acknowl-
edge that Mr Son has so far been as good
as his word.
Arm executives say that being a pri-
vate company has been something of a
liberation, allowing them to escape the
tyranny of quarterly reporting. They
have been encouraged to think longer
term and make bigger bets on future
trends. Given that Arm technology is
embedded in so many devices, Mr Son
took to calling the company his “crystal
ball”, the centrepiece of his vast technol-
ogy investment portfolio. To that end,
he enabled Arm to invest heavily in
designing chips for the Internet of
The UK’s claim to be
a sovereign nation in a
digital world will evaporate
further if the company fails
perspective. To be clear: this requires
the EU to reconsider its general attitude
to our region. Don’t look at your closest
European neighbours as part of a
friendly but exotic eastern partnership.
Instead, replace your “outstretched
hand” approach with a “give-a-hand”
approach.
In practice, this means giving Belarus,
Georgia, Moldova and Ukraine the clear
signals that EU and Nato membership is
Events in Belarus, and the
chance that it may fall
under Russian influence
indefinitely, requires action
achievable and, if a clear action plan to
membership is followed, that it is also
realistic.
As part of this process, western
Europe should give up any illusions it
may have about a possible reset of Rus-
sian relations. No such reset is possible
while the country is governed by Mr
Putin's authoritarian and corrupt
north Italian cities this summer and
never saw Bologna and Venice so empty.
Anecdotal estimates from local hotel
owners suggested turnover had fallen
by 80 per cent. Even if that turns out to
be too pessimistic, it is still reasonable to
assume an aggregate loss of tourism rev-
enues this year that is over €100bn. One
hotel owner said he expected no mean-
ingful recovery in tourism next year
either.
So Italy’s longer-term economic pol-
icy challenge is how to become less
dependent on tourism and more pro-
ductive overall. Unfortunately, there is
little debate about reforms, beyond leg-
islation to reduce bureaucratic com-
plexity. There is a good chance that the
coalition between the Five Star Move-
ment and centre-left Democratic party
will muddle through this crisis with the
help of money from the recently agreed
European recovery fund. But there is no
overarching strategy.
Germany and Italy differ, of course, in
how their economies are managed, their
resilience and their respective speciali-
sations. Yet they both enter this decade
with a similar mindset, and little
Things even though that has signifi-
cantly diluted the company’s earnings.
Given pressures elsewhere in Mr Son’s
empire as a result of the near-collapse of
WeWork and his substantial commit-
ment to Uber, he is now ready to offload
Arm earlier than originally planned to
generate cash. He recently confirmed
that he would either sell the business,
in whole or part, or return it to the
stock market.
There was a time when a Conservative
British government, which cheered Mr
Son’s original acquisition of Arm, would
have stood on the sidelines and left the
market to determine Arm’s fate. But we
live in a different era now.
If national sovereignty in the 20th
century was magnified by military
hardware — tanks, battleships and
nuclear missiles — it is increasingly
empowered today by civilian software —
intellectual property, data and compu-
ter code. Ironically, the EU appears to
have grasped the urgency of reasserting
“technological sovereignty” faster than
Britain. Ursula von der Leyen, the EU
commission president, has made it
regime. Instead of trying to reset rela-
tions with Russia with diplomatic gim-
micks, it is more important and urgent
to increase pressure, and to reset the
overall process of peaceful resolution of
armed conflicts that Moscow has insti-
gated in our region.
In Ukraine, we should abandon the
illusion that we can make peace in Don-
bass while leaving Crimea under Rus-
sian occupation. These issues cannot
remain separated. In Donbass, the
Kremlin is trying to wear down Ukraine
and the west by offering minor, tactical
concessions with the expectation that
Kyiv will give in. But the occupied terri-
tories of Donetsk and Lugansk will not
be free until Crimea itself is liber-
ated. That is the correct position, not
vice versa.
We also need a more comprehensive
approach to the peace processes in
Georgia and Moldova. I call on the
Ukrainian government and its western
partners to convene a high-level meet-
ing to bring a new approach to resolving
the frozen conflicts in our region.
As for economics and business, our
region needs investment and funding
support for entrepreneurship and free
markets.
Economic reform in Europe has been
discussed for decades. Unfortunately
the debate has focused too much on
labour markets and not enough on inno-
vation. Italy needs to downsize its state
sector and reform its inefficient judici-
ary, both of which obstruct business. No
one from outside will ever think of
launching a start-up in Italy, knowing it
can take years for a civil court case to be
heard. Other priorities, and for Ger-
many too, include tax cuts to encourage
private investment, public sector sup-
port for strategic high-tech sectors, and
gradual withdrawal of crisis support.
But this is not going to happen. The
eurozone is switching from a long period
of austerity and abstention and going
straight back to the bottle. Once fiscal
emergency measures are extended into
2021, it will be increasingly hard to
remove them. It may well be that the
eurozone emerges from this crisis the
weakest of the large advanced
economies.
munchau@eurointelligence.com
one of the defining themes of her term
in office.
Dominic Cummings, the UK prime
minister’s chief adviser, has been calling
for a more activist industrial strategy.
He has been championing the creation
of a British Arpa (Advanced Research
Projects Agency), hoping to emulate the
success of the US innovation agency
formed at the height of the Cold War
that helped spur the development of the
internet. The government has also com-
mitted $500m to salvaging OneWeb, the
collapsed satellite operator.
Arm is a far more significant candi-
date for state support given its commer-
cial success and centrality to the British
tech sector. The government should do
everything in its powers to encourage
Arm’s return to the public market, per-
haps with a joint listing in London,
Amsterdam, New York or even Shang-
hai, as Mr Hauser suggests, and defend
its independence. Britain’s claims to be a
sovereign nation in a digital world will
further evaporate if it fails.
john.thornhill@ft.com
support from western partners — a kind
of intervention. Our countries should be
invited to join EU country groups such
as the Three Seas Initiative, and other
infrastructure programmes. A regional
fund that helps counteract anti-western
propaganda and protect freedom of
speech should also be established.
Last, we need the US and the EU to
support our region via a shared sense of
solidarity. To do this, I call on our part-
ners to create a high-level joint mission
to defend freedom and democracy in
Europe’s east. The aim of this mission
should be to create a unified vision
about how best to continue Europe’s his-
toric processes of unification, and liber-
ation from the threats of authoritarian-
ism, external aggression and disregard
for human and national freedoms.
We need a new plan for eastern
Europe. This is in the interests of east-
ern Europe and all western nations as
they seek to maintain their own stability
in an uncertain world.
The writer is a former prime minister of
Ukraine and now chairman of the Kyiv
Security Forum
17
Make carbon
accounting a
requirement
for banks
Marilyn
Waite
I
n recent weeks, Morgan Stanley,
NatWest, Bank of America and Citi-
group have announced they will
start measuring and disclosing the
climate emissions of their financial
portfolios. They join more than 60
financial institutions already doing so
via the Partnership for Carbon Account-
ing Financials.
This is remarkable: we count what
matters to us. Whether it is baking
bread or taking medicine, measure-
ments are critical. Basic regulations we
take for granted today — verifying
financial statements around profit and
loss, for example — were not made man-
datory until the US was in deep trouble
during the Depression. After the Wall
Street crash of 1929, Congress passed
acts to ensure more corporate financial
transparency. To this day those meas-
urement and disclosure requirements
help investors, including retail consum-
ers, make informed decisions.
As a climate crisis looms, the most
important action today’s regulators can
take is to require financial institutions
to measure and disclose the carbon
emissions of their financial portfolios.
Banks and other financial institutions
are happy to make broad, long-term
commitments about reducing climate
impacts by 2050, but granular metrics
are essential to tracking such progress.
This means financing less of the dirty
stuff and more clean alternatives each
year until all financing is aligned with a
low-carbon, resilient society.
The scope, size, likelihood and dura-
tion of climate change creates unprece-
dented systemic risk to the financial
The pandemic is
forcing regulators
to rethink economic
fundamentals
system. At stake are: loan losses, deval-
ued assets and the inability to recover
financially. When businesses are inter-
rupted, or fail, due to wildfires,
droughts, severe storms and flooding,
the bank bears the brunt of unpaid
loans. We’re facing huge economic
upheaval. But there is also opportunity.
The Covid-19 pandemic and recession
have once again triggered regulators to
rethink economic fundamentals. Do we
have the necessary data and systems in
place to prevent and manage major
exogenous threats? The answer is no.
We need carbon data measurements for
financial transactions immediately.
Since 2015’s Paris Agreement, private
banks have financed more than $2.7tn
in lending and underwriting to the fossil
fuel industry, with the biggest four US
retail banks financing the most carbon
intensive activities at over $800bn. Oil
and gas bankruptcies have begun, from
natural gas producer Chesapeake
Energy to shale oil producer Whiting
Petroleum, not to mention the high-pro-
file downturn of California’s PG&E.
Momentum is building globally for
carbon accounting in the financial sec-
tor. Even before the string of announce-
ments in July and August, banks and
asset managers on multiple continents,
holding trillions in assets, were already
tracking emissions, and financial regu-
latory agencies had started putting
guidelines in place.
Five central government agencies in
China established the Climate Invest-
ment and Finance Association and the
European Commission launched a pub-
lic consultation to consider a range of
sustainable finance policies including
carbon accounting.
There are more than 5,000 banks and
5,000-plus credit unions in the US.
While less than 1 per cent are currently
reporting the carbon emissions of their
loans and investments, this is changing.
Real-economy banks — those that
finance small business, mortgages, auto
loans and everything else that keeps
Main Street running — have led the way
to measuring and disclosing their
financed emissions via the PCAF.
This industry-led initiative encom-
passes rural credit unions in Montana
and publicly listed financial institutions
in New York. If they can do this, surely
the whole industry can adopt the policy
— and certainly the regulators should
ask for it.
The writer was a senior research fellow
at Project Drawdown and leads the climate
finance portfolio at the William and Flora
Hewlett Foundation
18 ★ FINANCIAL TIMES Monday 31 August 2020

Shake it off
Business etiquette in a world
without hello handshakes
Z WORK & CAREERS

Women are in As schools have closed,

the line of fire

in this ‘pink
women have taken
up the slack
Violeta Stoimenova/Getty { VC firms:
the technocracy }
recession’ Most valuable US unicorns
Top 10 ($bn)
VC investment - risk and reward
Returns, as of Dec 2019 (%)
US Venture
Capital
46 SpaceX
1 quarter
36 Stripe
1 year
20 Palantir Tech

18 Airbnb 3 years

17.3 Epic Games 5 years Early stage index

Late & expansion
stage index
16 DoorDash 10 years Multistage index
S&P 500
13.8 Instacart 15 years
12.4 Snowflake
20 years
12 Samumed
25 years
Pilita Clark 11.2 Robinhood
0 10 20 30 40 50 60

Business Life FT graphic Source: CB Insights Source: Cambridge Associates

Unless you are very rich, or look after
the money of the very rich, you
probably took zero notice of last
month’s big industry awards bash for
Britain’s wealth managers.
I would have ignored it too except
that this year the Private Asset
Managers awards had a curious brush
with controversy.
It happened at the start of the virtual
gathering, when the event’s founder,
James Anderson, veered off piste from
some prepared remarks about how
well the whole working from home
thing was going.
He meant to say the discovery that
jobs could be done well from home
should help women whose careers had
been set back by motherhood. Instead,
he said it should help firms re-engage
“with a highly competent, skilled
workforce that currently has been
sitting at home twiddling its thumbs
and looking after the next generation”,
meaning mothers.
This did not go down well in all
quarters. “It was just so derogatory and
condescending,” says Jenny Tozer, a
wealth manager partner with more
than 30 years experience in the
industry.
The idea that mothers ever had
much thumb-twiddling time was
“laughable”, she told me last week. It
was especially wrong at a moment
when women were under more
pressure than ever.
Mr Anderson says that, in the effort
to speak into camera without notes, he
misspoke. “I regretted it very quickly,”
he said, adding a video of the awards
was quickly edited to cut out the
reference to thumbs.
Whatever one thinks of all this, I
very much hope he is right to think the
havoc unleashed by Covid-19 contains
some good news for women. It has
been unusually bad on many levels,
starting with job losses.
We have grown used to seeing men in
blue-collar jobs bear the brunt of
recession retrenchments. This time is
different. More women are in paid
work and they have held a lot of the
jobs being axed, in sectors such as
retail and accommodation. There is
“We have grown used to
seeing men in blue-collar
jobs bear the brunt of
recession retrenchments.
This time is different”
already talk of a “she-cession” in the
US, where the unemployment rate in
July was 9.4 per cent for men and 10.5
per cent for women.
People speak of a “pink recession” in
Australia, where researchers say the
number of women employed fell 5.3
per cent early in the outbreak,
compared to 3.9 per cent for men.
Globally, McKinsey reckons women’s
jobs are 1.8 times more vulnerable to
this crisis than men’s jobs.
Another new thing: schools — and
childcare centres — have closed, and
mothers have taken up the slack. In the
UK, mothers of primary school-aged
children spent an average of five hours
a day on home schooling, one study
found, while fathers spent two.
Small wonder another UK report
found mothers were 1.5 times more
likely than fathers to have either lost
their job or quit since the lockdown
started.
One could go on, about the fact that
globally, women make up 70 per cent
of health and social care workers,
putting them at risk of infection.
Or about the global rise in domestic
violence during lockdowns that the UN
calls a “shadow pandemic”.
Or the UK data suggesting that pre-
crisis, most personal protective
equipment was not designed to fit
women properly. Or the less disastrous
but still annoying news that American
women are twice as likely as men to
have been working at the kitchen table
in the pandemic, while men tend to
have a home office.
There are, of course, other factors
besides gender to consider in this
turmoil, such as race, class and income.
It is also obviously the case that men
are suffering too.
Most alarmingly, they have been
more likely to die of Covid-19 than
women in some places.
Yet male leaders have also been
mostly in charge and the results have
at times been almost funny. One can
see how a prime minister like
Australia’s Scott Morrison, whose
cabinet is crammed with balding men,
once thought it reasonable to limit hair
salon appointments to just 30 minutes.
That is just a small reminder of the
more serious fact that we are still
learning how the burdens of this crisis
are falling — and how different they
already are from those of crises past.
pilita.clark@ft.com
Twitter: @pilitaclark
When coronavirus hit Silicon Valley,
venture capital firms warned start-ups
to hunker down and expect tougher
terms or no new funds for the
foreseeable future. Such warnings may
have been overblown. Not only are VC
firms investing, they are raising more
money themselves. Compared with the
financial crisis, when fundraising
slumped, the difference looks stark.
With share prices of public tech
giants soaring and demand for online
services growing, funding has slowed
but not stopped.
Sitting on more than $120bn of
unspent cash as of last September, VC
firms have used video tours and virtual
meetings to facilitate due diligence.
More than 1,300 VC-backed
companies received funding in July,
according to PitchBook, which says the
anticipated drop in pre-money
valuations has yet to materialise.
At the top end of the scale, there are
now 488 private companies valued at
more than $1bn — unicorns, in Silicon
Valley parlance — up from 315 this time
last year. More than half of the top 10
are based in the US, according to CB
Insights. These include data analytics
provider Palantir, valued at $20bn in its
last fundraising round, and home rental
company Airbnb, last valued at $18bn.
Both companies have declared plans
to go public this year. So have
workplace app Asana, 3D gaming
engine maker Unity and cloud-based
data storage company Snowflake.
Instead of putting a stop to funding
rounds now, the true pain could come
next year. VCs know failure is part of
the game. Up to one-third of venture-
backed businesses fail, according to the
National Venture Capital Association.
External threats elevate those risks.
Investors will be looking for excuses to
score discounts. Tech start-ups will be
encouraged to tighten up costs. Some
have already laid off employees. Airbnb
announced 1,900 job losses in May.
The impact on valuations and returns
could start to show in spring 2021. The
average time between early-stage
fundraising rounds is just over a year.
When start-ups return for fresh funds,
they may find themselves fighting
over price.
Data from Cambridge Associates
show a 1 per cent loss for early-stage
VC investment in the first quarter of
this year, compared with a 5 per cent
gain in the last quarter of 2019. That
decline should turn out to be a blip.
Tougher negotiations on valuation in
the next round of funding will protect
VC returns in the longer term.

CROSSWORD
No 16,569 Set by VELIA
        ACROSS
1, 4 Getting on potty/loo tonight then?
(4,2,3,5)
9 Abuse when Velia stops work (6)
  10 Bacon sizzling here etc, cooked with
thanks (8)
 12 Work to banish the devil, as they say (8)
13 Somewhat austere outfit for speaker?
  (6)
15, 5 Cost accidentally picked up? That’s
 not right! (8)
16 Mash representatives? (7)
  20 Denounced, rejected and free (7)
21, 27 Dismiss bears (4-4)
   25 Port bottles the ultimate in vintage –
bliss! (6)
  26 Friend a right nuisance in this city (8)
28 Kitty gulps medicine back and gets a
   sweet (8)
29 Wings of saprophytic horse beetle (6)
  30, 31 Wretched habit I developed for say,
cheese (5,3,6)
 DOWN
1, 22 Perhaps a “whole-fat pudding” is the
  precise legal definition (6,2,3,3)
2 Finally open to offer: seed for
Scandinavians (8)
3 Bring on half of industry, then change
  sides (6)
5 See 15
6 Top of tatty, torn curtain becomes
detached (8)
JOTTER PAD 7 Riverside residents on the Thames
estuary, rock stars originally (6)
8, 19 What’s up with the FT? Needs a
revamp into a viable prominent position
(4,2,3,5)
11 Introduce Kathmandu’s last shrine
restoration (5,2)
14 Rebel questionably dropped Latin from
eulogy (7)
17 May be tuna sandwiches always hot (8)
18 Decrepit Italian head of state, once a
socialist (3-5)
19 See 8
22 See 1 down
23 Romeo and Juliet possibly speculate
about everyone (6)
24 Martial art found in 50% of Taiwan and
large part of China (3,3)
27 See 21