Newspaper of the Year

THURSDAY 25 OCTOBER 2018 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00

Shifting gear Wrecking ball Modern Workplace

Ownership is falling, but the car will Is Jair Bolsonaro a threat to Brazil’s The global drive for equal rights for
keep on rolling — JOHN GAPPER, PAGE 11 democracy? — BIG READ, PAGE 9 LGBT+ workers — SPECIAL REPORT

Bombs target Briefing

CNN, Obama i Hammond eyes small company VAT shift
Allies of Philip Hammond have said the chancellor
and Clinton is considering changes to value added tax rules for
small companies to try to reform a system that
costs the Treasury up to £2bn a year.— PAGE 2
Officers from the New York police
counter terrorism squad stand guard i Deutsche Bank falls further behind
outside the Time Warner Center in The German investment bank has lost more ground
Manhattan yesterday after a suspicious to its US rivals, fuelling fears that European lenders
package was found inside the offices of will struggle to compete in the absence of a regional
television network CNN. powerhouse.— PAGE 13; LEX, PAGE 12; ANALYSIS, PAGE 15
Suspected explosive devices were also
sent to former president Barack Obama i Sanofi raises post-Brexit drug hopes
and former Democratic presidential The drug group’s vaccines division has suggested
candidate Hillary Clinton, in Washing- Britain could approve drugs more quickly than the
ton and New York, respectively. rest of Europe following Brexit, after it accelerated
The incidents followed the discovery the assessment of a new flu vaccine.— PAGE 3
of a device on Monday at a New York
home of George Soros, the pro-Demo- i Heywood steps down as civil service head
cratic investor. National security adviser Mark
“These cowardly acts are despicable Sedwill, right, has been
and have no place in American society,” appointed cabinet secretary
said Mike Pence , vice-president. and civil service head after
Full story page 7 Jeremy Heywood announced
Kevin Coombs/Reuters
he was stepping down.— PAGE 2

i Sentiment dip raises eurozone fears

Patisserie Valerie admits further

A fall in the purchasing managers’ index has raised
fears of a lengthy slowdown and follows signs that
the global trade war is hurting the world’s biggest
trading bloc.— PAGE 6; EDITORIAL COMMENT, PAGE 10

i May attacks ‘unethical’ gagging orders

undeclared share bonus awards The prime minister has hit out at non-disclosure
agreements after it emerged the Daily Telegraph
had been prevented from naming a businessman at
the centre of sexual harassment allegations.— PAGE 3

i Former Afren chiefs guilty of $45m fraud

3 Triple bite for top executives 3 Shareholders not informed 3 FRC looks into matter
FEDERICA COCCO AND
ATTRACTA MOONEY
Struggling café chain Patisserie Valerie
admitted yesterday that it had awarded
millions of pounds of share bonuses to
its two top executives without notifying
shareholders.
Half of the undisclosed awards were
exercised by Paul May, chief executive,
and Chris Marsh, finance director, just
three months before the group sus-
pended its shares after uncovering “sig-
nificant, and potentially fraudulent”
accounting irregularities. The two made
£1.7m in profits on the sale of those
options, exercised on July 20.
The company later said it had net debt
of nearly £10m rather than the £28m of
cash previously recorded. Mr Marsh
was arrested by police and released on
bail pending further inquiries. In a stock
market announcement, Patisserie
Valerie reported that in addition to 1m
share options granted in 2014 to Mr May
and 666,666 options for Mr Marsh, the
same number of options were awarded
in 2015 and 2016.
All of the awards were made as part of
the company’s 2014 long-term incentive
plan but only the 2014 tranche had been
made public. This week, the Financial
Times reported the 2015 share award.
Patisserie Valerie, audited by Grant
Thornton, said it did not know why the
2015 and 2016 share options had not
been “appropriately disclosed and
accounted for in its financial state-
ments” but was seeking to understand
this as part of its investigations.
It also did not disclose what the 2016
Osman Shahenshah and Shahid Ullah, executives at
the collapsed oil group, have been found guilty of
fraud and money-laundering after a six-week
options were worth but added that they £20m to keep the company afloat. He London trial. Sentencing is on Monday.— PAGE 18
were “now considered by the company has been head of the remuneration
as being unlikely to become exercisable committee, which sets pay, since the
under the rules of the [incentive plan]”. company listed in 2014. Shareholders Datawatch
The sale of the original tranche of are already at loggerheads about
options granted in 2014 made Mr May whether to ditch Mr Johnson’s internal
and Mr Marsh a total profit of £2.9m Patisserie review of the company’s problems in Midterm motivations Polls show half of
before dealing costs and tax. They were Valerie says favour of an independent investigation. Per cent the electorate
allowed to sell the shares because they share bonuses Chris Boxall, co-founder of Funda- would vote
50 Democrat if the
had hit profit targets that may now have to its top two mental Asset Management and a small Democrat US midterms were
to be revised. executives were shareholder, said the failure to disclose 45 held today.
On July 20 this year, Patisserie Hold- made three the share options was “very unusual”. Republicans hope
ings said in an RNS announcement it times “Evidently, the fact that the 2015 40 to maintain their
had issued Mr May another 1m shares, Tolga Akmen/FT
awards of 1,666,666 shares were exer- majorities in both
which he had sold, making an extra cised at 316p in July 2018 now looks very 35 houses but only
£1.02m. Mr Marsh sold another 666,666 bad indeed,” he said. Republican one in three
30
shares, making an extra £680,000. The Financial Reporting Council, the respondents
Aug 2017 2018 Oct
The latest disclosures raise questions accountancy watchdog, told the FT it would choose
about the role of chairman and entre- was “looking into this matter carefully”. Source: Refinitiv Republican
preneur Luke Johnson, who has injected Lombard page 18

Facebook and Apple challenge US to

Social supermarkets give
lifeline to working poor
A new type of grocery store has
sprung up since 2013, catering to
low-income families struggling with
insecure work and years of benefit
cuts. Social supermarkets, like the one
in Northampton’s Blackthorn district,
sell a £7.50 box of food donated by
local wholesalers and fundraisers that
would normally cost about £40.
Interviews with leaders in the sector
suggest there could soon be more than
100 in the country.
Analysis i PAGE 3
bring in European-style data privacy
MEHREEN KHAN — BRUSSELS
TIM BRADSHAW — SAN FRANCISCO
Facebook and Apple have called on the
US government to adopt tough EU-
style data privacy laws, challenging
White House objections that European
regulation is imposing red tape on
American technology businesses.
In separate addresses in Brussels yester-
day, Apple chief executive Tim Cook
and Erin Egan, Facebook privacy chief,
backed legislation to give Americans
equivalent protections to those given to
Europeans under the EU’s General Data
Protection Regulation.
The GDPR, which came into force in
May, is one of the toughest personal pri-
vacy regimes in the world, giving EU cit-
izens the right to demand that compa-
nies disclose and delete data held about
them. It also gives national regulators
powers to impose fines of as much as
€20m, or 4 per cent of annual revenues,
on companies that break the law.
The Trump administration has com-
plained that the GDPR risks creating
barriers to trade by imposing unneces-
sary burdens on companies struggling
to comply. Writing in the Financial
Times in May, US commerce secretary
Wilbur Ross said the criteria for apply-
ing GDPR was “too vague” and imposed
a “significant cost” on small businesses.
In a meeting with Vera Jourova, EU
justice commissioner, last week, Mr
Ross expressed concerns that the GDPR
was creating difficulties for US business
and law enforcement, according to an
EU official present during the talks.
Despite White House objections, US
tech groups have warmed to national
legislation, in part out of fear that a
patchwork of state laws could wreak
havoc. California has already enacted its
own privacy legislation.
Mr Cook has been notably outspoken.
Apple is less reliant on customer data to
generate revenue than rivals such as
Facebook and Google, which use it to
target advertising.
Though Mr Cook did not mention the
rivals by name in his speech to a gather-
ing of EU privacy specialists at the Euro-
pean Parliament, he tacitly criticised
them as a “data industrial complex”
which he said was enriching
itself on “stockpiles of personal data”.
“Our own information, from the eve-
ryday to the deeply personal, is being
weaponised against us with military
efficiency,” he said. When asked if Face-
book would also “unequivocally” back a
US version of GDPR, Ms Egan said “yes”.
Additional reporting by Hannah Kuchler
Amazon’s second base page 17

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2 ★ FINANCIAL TIMES Thursday 25 October 2018

NATIONAL

Cabinet secretary Small businesses

PM’s confidant to head civil service Hammond

eyes change
National security adviser Sir Jeremy has been one of the most utes from politicians at Westminster 54-year-old has worked closely with cials as a concern. The UK is facing huge
to VAT
Sedwill appointed after
influential figures in the government —
most recently contending with the chal-
and from figures across the civil service.
Mrs May told the Commons that Sir
Mrs May since 2013 when, as home sec-
retary, she appointed him permanent
challenges from Brexit, especially in the
area of trade, and the Treasury is pre-
threshold
Heywood steps down lenges posed by Brexit. Jeremy, who is to be awarded a life peer- secretary at the Home Office. paring a significant public spending
After serving as cabinet secretary to But Sir Mark is regarded both inside review affecting the entire sweep of
prime ministers David Cameron and and outside Whitehall as an unusual policy.
JAMES BLITZ — WHITEHALL EDITOR
Theresa May, Sir Jeremy, 56, said he was
‘I believe the service is well choice for the head of the civil service. But one Whitehall insider said it
GEORGE PARKER — POLITICAL EDITOR

Philip Hammond is considering chan-

Mark Sedwill, the national security leaving the role to concentrate on his equipped to provide the Nearly every cabinet secretary since would be hard to imagine Mrs May
ges to value added tax rules for small
adviser, has been appointed cabinet sec- recovery from cancer. the second world war has had a back- appointing a cabinet secretary with
retary and head of the civil service after He defended the civil service from
support the country needs ground in the Treasury, with strong whom she was unfamiliar at such a criti-
companies to try to reform what he
believes is a defective system that costs
Jeremy Heywood announced yesterday what he called “recent noises off” over the coming years’ experience in economic and domestic cal moment.
the Treasury up to £2bn a year.
he was stepping down from the role regarding its handling of Brexit — senior policy. Although Sir Mark might have faced
after six years. officials have been criticised by Euro- age, had made a contribution to public By contrast, Sir Mark has spent most rivals in a competition for the post of The chancellor is looking at cutting, or
Sir Mark has been acting cabinet sec- sceptic Conservative MPs. “I believe life that “few in our country can match”. of his career at the Foreign Office and cabinet secretary, his appointment was at least extending a freeze of, the
retary since June, when Sir Jeremy tem- that the service is in robust health, well Jeremy Corbyn, the Labour leader, security establishment, first as a diplo- applauded by senior civil servants. £85,000 turnover threshold for VAT
porarily vacated the position after being equipped to provide the support the said he was an “impressive, well-in- mat in the Middle East, Pakistan and “In the last few months, as acting cabi- after being advised that companies stop
diagnosed with cancer. He is to combine country needs over the coming months formed and dedicated public servant”. Afghanistan and then as Home Office net secretary he has taken on a fair bit of growing or try to avoid crossing the line.
the roles of cabinet secretary and and years,” said Sir Jeremy, who joined Sir Mark’s appointment by Mrs May permanent secretary. the top leadership stuff,” said one In last year’s Budget Mr Hammond
national security adviser until a replace- the civil service 35 years ago. as cabinet secretary was widely Sir Mark’s lack of economic experi- Whitehall official. “He’s respected by froze the threshold for two years from
ment is found for the latter position. His departure prompted warm trib- expected by ministers and officials. The ence is bound to be seen by some offi- the perm[anent] sec[retaries].” April 2018, but his allies confirm that
the chancellor regards this as unfin-
ished business. “Options include cutting
the threshold,” said one.
This normally rises every year in line
Profile. Jeremy Heywood with inflation.
Mr Hammond had eyed reform of the

Brexit tensions cloud VAT regime for small companies in his

last Budget, including moving Britain
closer to global standards, such as the

end of tenure for

EU average of £20,000. He had to drop
radical changes amid a backlash from
Conservative MPs and business groups,
who warned it would bring thousands of

‘Mr Indispensable’ small businesses into the VAT system.

The Federation of Small Businesses
acknowledged at the time that Mr Ham-
mond’s decision to freeze the threshold
was “good news” for small business
ters. Before Mr Brown, he worked for owners, who would not have to shoulder
Senior official who served four the Labour prime minister, Tony Blair, the added administrative burden.
PMs quits to fight illness as as private secretary. Then, as cabinet Even so, Mr Hammond, faced with
secretary, he served Tory prime minis- pressure to increase spending on public
Eurosceptics hit out at his staff ters David Cameron and Mrs May. services, has been reviewing the effec-
“Each of those prime ministers, two tiveness of business taxation and subsi-
from Labour, two from the Conserva- dies as he looks to raise money.
JAMES BLITZ
tives, regarded him as ‘Mr Indispensa- The Financial Times reported this
Jeremy Heywood has never been a ble’,” said one Whitehall mandarin. week that he is planning to scale back
household name. But over the past 30 Part of Sir Jeremy’s reputation serving the £3,000 “jobs subsidy” known as the
years, few figures inside the government these four prime ministers came from employment allowance created by
have been more powerful or so often at defusing political feuds. George Osborne, his predecessor, in
the centre of great events. When Mr Blair was premier, he 2014. Mr Hammond is likely to restrict
As he stood down as cabinet secretary helped to resolve often thunderous con- the allowance, a cut in employers’
and head of the civil service yesterday flicts with his chancellor, Mr Brown. national insurance intended to boost job
after six years in the role, Sir Jeremy “For many of those years he was the creation, to the smallest companies,
pointed in a valedictory statement to guy from the Number 10 end who kept arguing that the jobs would have been
some of the major political and eco- the Brown-Blair relationship going,” created anyway.
nomic dramas at which he has been said one Whitehall insider. Mr Hammond wants to bring more
present. After the 2010 election, he also played companies into the VAT net; 55 per cent
On Black Wednesday in 1992, he was a crucial role in helping to ensure that of small businesses are outside the sys-
private secretary to the Conservative the uneasy Conservative-Liberal Demo- tem. The Office of Tax Simplification
chancellor, Norman Lamont, helping to crat coalition functioned. reported last year that the £85,000 VAT
put in place the UK’s new monetary “He saw his job as serving whoever threshold, the point at which a company
framework after the ERM crisis. was in power and his job at the time was has to charge 20 per cent on all its sales,
During the 2008 financial crisis, he to make the coalition work,” said one causes distortions to the tax system and
was head of domestic policy and strat- official. is costly to the Treasury.
egy in Downing Street, working for the That reputation meant that when Gus It found that “bunching” by compa-
Labour prime minister, Gordon Brown, O’Donnell stood down as cabinet secre- nies with turnovers just below the
and trying, as he put it, to prevent Brit- tary in 2012, Sir Jeremy was a certainty threshold was causing “a distortionary
ain “falling into another great depres- to replace him. impact on business growth and activ-
sion”. “There was no competition because ity”. It also suggested that some compa-
But the biggest crisis with which Sir Cameron saw him as the obvious nies were illegally under-reporting tak-
Jeremy has had to contend is the most choice,” said Jill Rutter, programme ings: the rules can leave a trader £17,000
recent one: Brexit. He said: “I am partic- director at the Institute for Govern- worse off after crossing the threshold.
ularly proud of the work Whitehall has ment, a think-tank. The report said reducing the limit
done in seeking to bring clarity, shape Sir Jeremy made clear yesterday that from £85,000 to £43,000 would affect
and practical options [on Brexit] to the he saw his trademark as a civil servant about half a million businesses and inc-
table for ministers to discuss.” as being a problem solver. rease Treasury receipts by £1bn to
Brexit has clouded the end of his ten- “Throughout my career, I have seen it £1.5bn a year. A decrease in the thresh-
ure as cabinet secretary, with politicians as my responsibility to . . . find solu- old to £25,000 could raise up to £2bn.
— notably Eurosceptic Tory MPs — tions,” he said. Mr Hammond is unlikely to be any-
attacking civil servants over their work One official said this was the critical Stepping back: best of Brexit. But Sir Jeremy was ham- ‘It’s hard to drum. His absence since June through where near that ambitious, but Treas-
on Prime Minister Theresa May’s com- characteristic of Sir Jeremy to under- Jeremy Heywood pered by the fact he had done little con- illness made it difficult for him to ury officials note that changes to the sys-
promise plan for leaving the EU. stand. “An earlier generation of cabinet stands on the tingency planning for Brexit before the see how any defend his protégé, Olly Robbins, Mrs tem could be made without legislation —
Sir Jeremy, 56, is a northerner who has secretaries would have said to the PM: stairs in No 10 poll, almost certainly because Mr Cam- successor May’s main Brexit negotiator, who has a big factor in a Budget where Tory
never completely lost the trace of his ‘Here are the options’. Jeremy’s beside pictures eron refused to instruct the civil service also been attacked by the Eurosceptics. Eurosceptic MPs are restive.
regional accent, despite three decades approach was to say: ‘Here’s the solu- of former prime to conduct any. could be The gap Sir Jeremy leaves is huge. Ms If the VAT threshold were reduced,
in the cloistered world of Whitehall. But tion’,” he added. ministers Problems then intensified. Sir Jeremy a cabinet Rutter said: “It’s hard to see how any some businesses would pass on the
apart from his urbanity, the quality Brexit, however, was a problem too DPA/PA
was vilified last year by Eurosceptic successor could be a cabinet secretary of extra costs to customers but others
which many civil servants associate far. His response after Leave’s victory in Conservative MPs because he was secretary of the kind Jeremy has been, with that would be forced to absorb them, partic-
with Sir Jeremy is his agility in working the EU referendum in June 2016 was deemed to be the author of a complex [this] kind’ monumental detailed grasp across the ularly if they compete with companies
with four very different prime minis- that the civil service had to make the solution to the Brexit customs conun- whole of domestic policy.” already within the VAT net.

Cyber security Future of Europe

MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Spy chief calls for western Treasury official says close ties
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
co-operation with China to EU are ‘absolutely essential’
Trump vs the Valley A Five Star plan? Dear Don...
Tech titans need to minimise Italy’s populists are trying to woo May’s first stab at the break-up
political risk — GILLIAN TETT, PAGE 13 the poor — BIG READ, PAGE 11 letter — ROBERT SHRIMSLEY, PAGE 12

HMRC warns Lloyd’s of Brussels Insurance market

to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

customs risks THE END

i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

US security agencies have long net EU contribution”, the much bigger

dealmaking, as US companies ride a Trump-fuelled HOW DRIVERLESS

being swamped
equity market rally to hunt for bargains across the

OF THE
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

i Report outlines longer NHS waiting times

A report on how the health service can survive
TECHNOLOGY IS
CHANGING AN
DAVID BOND — NEW YORK CHRIS GILES — ECONOMICS EDITOR
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

advised telecoms operators not to use issue for the public finances was the eco-
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

One of the UK’s top cyber intelligence The Treasury’s top official told MPs
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
A survey has revealed that a
How To Spend It
equipment from China’s Huawei, citing nomic effects of the withdrawal deal
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

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

fresh tax probe

national security concerns. Earlier this and future relationship under negotia-
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland

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”.
begin engaging with China on cyber tial” for the government to agree a
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

year, Australia banned Huawei and tion with Brussels.

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.
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 TheRALPH
bank hasATKINSunveiled
— ZURICHa range of gender-neutral 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
security, even as other western govern- close relationship with the EU to sup-
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

ZTE, another Chinese telecoms com- The permanent secretary to the

Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.”
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
were contacted
Highlighted attack byOthers
Recent

Reproduction of the contents of this newspaper in

The Swiss bank said yesterday it was tax authority added: “The international
reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.”
local officials
The lure of the exotic
Robin Lane Fox on the flair

ments close ranks against large Chi- port economic growth and afford the
“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
to hit 300m.
The revelations about the system,
HMRC’s letters to the select commit-
tee, which will be published today, pro- AFP Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint- of foreign flora — HOUSE & HOME
parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

Number One Southwark Bridge, London SE1 9HL

called Customs Declaration Service, are vide no explanation for the rating Lloyd’s of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem-

any manner is not permitted without the publisher’s

likely to throw a sharper spotlight on
while Australia’s revenue department and Nice, and the while French officials said their
probe;
change, but some MPs believe it was sels over “five or six” other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed “several

pany, from providing 5G technology to Treasury said 400 of the department’s

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.
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
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
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
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
its transport links, talent pool efforts by the country’s banking sector Switzerland and not declared to French
of generally low
and “extremely good regula- to overhaul business models and ensure tax authorities.
fatalities from
tory reputation”. customers meet international tax The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in

nese telecoms and technology groups. inevitable costs of Brexit.

requirements following a US-led clamp- western Europesaid it was “astonished at the way this
Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14
essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.

prior consent.
down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland”. It
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

Published by: The Financial Times
banker loses job over WhatsApp boast
mobile phone networks there. 1,300 full-time equivalent staff were
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
Limited,
EU’s judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris
evade tax. It agreed to fines of $2.6bn.
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
How high earners can evade
a pension headache — FT MONEY

In an apparent softening in tone from The NCSC, which monitors and inves- Tom Scholar was answering questions working on Brexit.
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to

Number One Southwark Bridge,

JENNIFER THOMPSON — LONDON
Christopher Niehaus, a former Jeffer- ban people from installing apps on their

Shutdown risk as border

wall bid goes over the top
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
regulators cracking down on commu-
nications over Facebook’s popular
chat app.
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
saging apps as the same as everything
else”.
‘Financial
Brussels takes toughTimes’ and ‘FT’ are registered trade marks
stance on Brexit
with Spain handed veto over Gibraltar
390_Cover_PRESS.indd 1 19/01/2017 13:57

London SE1 9 HL, United Kingdom.

Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus

of The Financial Times Limited.

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
stopgap spending plans. They fear
that his planned $33bn increase in
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staff’s communication.
Several large investment banks have
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
earlier warnings about Chinese compa- tigates big cyber attacks against UK from Labour MP Catherine McKinnell He said the Treasury was involved in
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
his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require “existing regulatory, budgetary,
Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

Tel: 020 7873 3000 defence and border spending could

force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

to accept the proposals. encryption system that cannot be
US budget Q&A and accessed without permission from the
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
nies, Ian Levy, technical director of companies and critical infrastructure, about whether there would be what the an analysis of the economic effects of
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and
for comment. About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials
Additional reporting by Chloe Cornish today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
Lombard page 20 wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possible if certain conditions are met.

Editor: Lionel Barber Subscribe In print and online

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will pile pressure on English councils,
which will have to pay care workers a
lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
The Financial Times and its journalism are subject to
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
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ess that prioritises progress on with-
drawal terms.
that the EU negotiating stance was
largely “constructive”, with one saying it
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

GCHQ’s National Cyber Security Centre, has also flagged similar concerns over prime minister called a “Brexit divi- any Brexit agreement which would be
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and rapid technological advancement laws allowed the state to exert influence the UK left the EU. final agreement with the EU. But he
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Are available of any FT article with your company meant the west had to change approach. over companies and individuals. Asked whether the country could added that it might take “a little time” to
Advertising logo or contact details inserted if required (minimum “Like it or not, we are going to have to In July, a UK watchdog that monitors afford Brexit, Sir Tom told the Treasury finalise the figures to reflect the exact
Tel: 020 7873 4000; ukads@ft.com order 100 copies).
Letters to the editor talk to China,” Mr Levy told cyber, intel- Huawei’s products in Britain issued its committee: “The overwhelmingly nature of any agreement.
letters.editor@ft.com; Fax: 0207 979 7790 One-off copyright licences for reproduction of FT ligence and military chiefs at the Atlan- own report saying it could only provide important thing here is the nature of the Sir Tom also said the Treasury would
Executive appointments articles are also available. tic Future Forum in New York. “The “limited assurance” that all risks to UK’s economic relationship with the EU. say something “soon” about the “serious
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For both services phone 020 7873 4816, or
reality is they will own a huge chunk of national security from the company’s “If it’s a close one that supports con- issue” of the discredited retail price
Printed by alternatively, email syndication@ft.com internet structure going forward. involvement in British telecoms net- tinued economic growth, then we can index measure of inflation.
St Clements Press (1988) Ltd, London, Newsprinters “Like it or not like it, they have 1.4bn works had been “sufficiently mitigated”. certainly afford to establish a few new Regarding the Budget on Monday, he
(Knowsley) Limited, Merseyside, Newsprinters Newspapers support recycling people who are going to be cyber crime Despite the previous warnings, Mr agencies and that is why it is absolutely said the chancellor would elaborate on
(Eurocentral) Glasgow, and Smurfit Kappa News The recycled paper content of UK newspapers in
Press Ld, Kells, Ireland 2015 was 71% victims,” he added. “Like it or not like it, Levy said that Britain should now be essential that is what is agreed.” the prime minister’s commitment to end
we are going to have to talk to them engaging with China’s biggest technol- Sir Tom agreed with the MP that austerity, although many areas of public
© Copyright The Financial Times Limited 2018. All because we are going to get all the collat- ogy companies, including Alibaba, Ten- although there was money to be saved expenditurewouldbeleftuntilthepublic
rights reserved.
eral damage from those attacks.” cent and Baidu. from “reducing or eliminating the UK’s sectorspendingreviewnextyear.
Thursday 25 October 2018 ★ FINANCIAL TIMES 3

NATIONAL

Harassment claims EU departure

May condemns ‘unethical’ use of NDAs Flu vaccine

PM voices concern over
gagging orders after court
blocks naming of executive
LAURA HUGHES AND NAOMI ROVNICK
Theresa May has hit out at the “unethi-
cal” use of non-disclosure agreements
after it emerged the second highest
court in England had stopped a newspa-
per naming a leading businessman at
the centre of sexual harassment and
racial abuse allegations.
The premier told MPs yesterday it
was “clear” some employers were using
NDAs “unethically”. Mrs May was
responding to Jess Phillips, a Labour MP,
who had earlier threatened to use par-
liamentary privilege to name the execu-
tive that The Daily Telegraph was
stopped from naming.
Speaking at prime minister’s ques-
tions in the Commons, Ms Phillips said:
“It seems that our laws allow rich and
powerful men to pretty much do what-
ever they want as long as they can pay to
keep it quiet.”
NDAs have been criticised for being
used by the wealthy and powerful to
silence victims of sexual harassment.
Mrs May said she could not comment
on a case before the courts but assured
MPs her government was still consider-
ing scrutiny of NDAs or gagging clauses.
Downing Street first promised to look at
Low pay. Food insecurity
NDAs in January after FT revelations
about the behaviour of some guests at
the Presidents Club Charity Dinner, a
men-only event. Hostesses, some of
‘He should be named as
long as that is what victims
want. It cannot be right that
the rich can buy silence’
whom said they were sexually harassed,
had had to sign NDAs beforehand. Many
of the women who spoke out about
sexual harassment by Hollywood pro-
ducer Harvey Weinstein had also signed
the legally binding agreements.
The prime minister told MPs: “The
government is going to bring forward
measures for consideration for consul-
tation to seek to improve the regulation
around non-disclosure agreements and
make it absolutely explicit to employees
when a non-disclosure agreement does
not apply or cannot be enforced.”
Before question time, Ms Phillips said
that if one of the victims of the unnamed
businessman consented to her naming
him in the Commons, she would do so.
“He should be named as long as that is
what victims want. It cannot be right
that the rich can buy silence,” she said.
In imposing the order on the Telegra-
ph, the UK Court of Appeal ruled that
five staff who had made allegations
against the executive had been given
“substantial payments” under settle-
ments that contained NDAs. This “com-
promised” their complaints, judges Sir
Terence Etherton, Lord Justice Under-
hill and Lord Justice Henderson said.
The court overturned a High Court
judgment in August that said the paper
should not be gagged. It did not name
anyone involved, apart from the paper.
It said the claimants who had sought
the injunction were “two companies in
the same group and a senior executive of
that group”. It identified those who had
made allegations as “five employees of
group companies” against the execu-
tive. Three had also taken their claims
to an employment tribunal.
raises hopes
of faster drug
approvals
SARAH NEVILLE
GLOBAL PHARMACEUTICALS EDITOR
A global pharmaceuticals company has
raised the prospect that Britain can
gain a post-Brexit advantage by
approving drugs more quickly than the
rest of Europe.
Sanofi’s vaccines division, Sanofi Pas-
teur, has been collaborating with the
Medicines and Healthcare products
Regulatory Agency to accelerate the
assessment of a new flu inoculation.
Hugo Fry, UK and Ireland managing
director of Sanofi, said the agency had
shown it could be “flexible and agile in
its ways of working”, accepting a dossier
as part of the approval process that was
“based on the documents submitted in

Social supermarkets offer working poor a lifeline
Discount outlets often run by
charities are fast becoming the
go-to option for many families
NAOMI ROVNICK — NORTHAMPTON
Louise Tibble, a mother of four who
works in a hotel on a zero-hours con-
tract, said she earned only £250 in the
last month.
For the 32-year-old Briton and her
partner, who works full time in a garage,
“our money does not always cover the
week’s essentials”, she added.
So Mrs Tibble has come to a so-called
social supermarket near her Northamp-
ton home to buy a £7.50 box of food that
has been donated by local wholesalers
and community fundraisers and would
cost about £40 in high street shops.
Social supermarkets like the one in
Northampton’s Blackthorn district have
sprung up across the UK since 2013 to
cater for people who have some money
to spend, but not enough. These sites,
often run by charities and selling deeply
discounted food and other essentials,
are popular with low-income families
affected by insecure working arrange-
ments as well as years of austerity-
driven public spending cuts, notably to
welfare benefits.
It is an issue confronting Chancellor
Philip Hammond as he prepares to
deliver his Budget on Monday, not least
because Prime Minister Theresa May
this month pledged to bring an end to
austerity. The pressure is mounting on
him to increase spending, including on
welfare, as the public finances are in
markedly better shape than thought.
In Britain, despite high levels of emp-
loyment, hunger and poverty have
become widespread. The number of
adults and children in working house-
holds grappling with poverty rose by 1m
to 8.3m in the three years to March 2017,
said charity the Joseph Rowntree Foun-
dation. The UN, meanwhile, estimates
8.4m Britons live in food insecurity.
Blackthorn does not seem an obvious
location for a social supermarket: the
terraced homes suggest a social housing
success story rather than a place of
hunger. But the town’s status as a logis-
tics hub in central England makes it
flush with low-paid warehouse workers.
“I’d say that over half of the people
who come to us for food are in work,”
said Tim Bedward, an ex-sales manager
Essentials: a who volunteers at three of the five sites
shopper at the that charity Northampton Hope runs in
Blackthorn the town. “But they’re in low-paid jobs
supermarket or insecure, zero-hours jobs. There’s just
where food is a lack of comfort in peoples’ lives.”
donated by Part of the appeal of social supermar-
wholesalers and kets is that they are not food banks,
community which hand out essentials free to people
fundraisers in crisis. Shoppers at the supermarkets
Tom Pilston
pay nominal amounts for donated food
and other essentials.
“This is not a food bank . . . as we are
giving some money back,” said Nicole
Wallis, a catering worker who uses the
Blackthorn social supermarket.
Emma Lewell-Buck, the Labour MP
for South Shields and a campaigner on
food insecurity, blamed the rise of social
supermarkets and food banks on “inse-
cure work and a dereliction of welfare”.
There is no data on the number of
such supermarkets in the UK, but inter-
views with leaders in the sector suggest
there could soon be more than 100.
Researchers at Coventry University
identified 23 supermarkets in a June
study, but there are likely to be many
more operating quietly out of churches
and community centres across Britain.
Laura Jones, who manages Your Local
Pantry, a social supermarkets network
in Stockport, said she had counted 25 in
Greater Manchester, including the five
she oversees. Her organisation, having
received inquiries from charities as far
afield as Thame and Falkirk, plans to
open or help launch 50 more shops. “We
just can’t keep up with the demand,”
said Ms Jones. “The idea is so popular.”
Adam Corlett, at the Resolution Foun-
dation, a think-tank, said low-income
and jobless Britons were growing worse
off due to welfare cuts since 2012. From
2016, payments of tax credits and child
benefit stopped rising in line with infla-
tion, a move that will cost low-income
families £580 a year by 2019, he added.
Universal credit, the troubled welfare
overhaul that combines various benefits
into one monthly payment set to be rol-
‘This is led out nationally, has cut the income of
working households eligible for benefits
not a by £1,600 a year on average, said think-
food bank tank the Institute for Fiscal Studies.
The national living wage has risen to
. . . as we £7.83 an hour for the over-25s, from
are giving £7.20 when it was introduced in 2016,
but it has “been offset by the large scale
some of the benefit cuts”, said Mr Corlett.
money It is not only working families who
rely on social supermarkets, the unem-
back’ ployed are also frequent users. Ms Jones
said that in Stockport between 10 and
23 per cent of supermarket users were
employed, depending on the site. This
fits with data from Community Shop,
which runs four social supermarkets in
Yorkshire and London; it said 22 per
cent of its users were working.
But at Blackthorn, it is often low-paid
workers who are looking for bargains. A
man with five children, saying he was a
security guard, left with three bags of
food, adding: “At least this will keep
them going for a bit.”
Australia, adapted to meet MHRA
requirements”.
He suggested this could act as a tem-
plate for how product approvals could
take place once the UK left the EU “with
the registration being up to five months
faster compared to going through the
European Medicines Agency”.
Attention has focused on the possibil-
ity that UK patients will receive new
drugs later than their counterparts else-
where in the world when Britain is no
longer part of the EMA, because a sepa-
rate application will have to be made to
approve the drug for the British market.
Approvals by the EMA, which is mov-
ing from London to Amsterdam as a
result of Brexit, are valid throughout all
28 member states.
While Mr Fry said he had “no idea”
what would happen to the UK regula-
tory environment, the work to speed up
approval of its vaccine “could be used as
a benchmark case study to demonstrate
how new product approvals can take
place when the UK leaves the European
Union”. The MHRA was “looking at
really innovative ways, in a post-Brexit
Britain, to give companies options”.
But pharma executives frequently
worry about the slow rate of take-up for
their drugs by the National Health Serv-
ice, a point some believe will loom larger
as companies decide where to place, or
increase, investment after Brexit.
Mr Fry suggested there would be little
advantage in seeking to expedite
approval via the MHRA “if we’re going
to get hammered on price and there’s
going to be no uptake”. He cautioned
that a new regulatory process by the
MHRA would not automatically mean
faster access to new vaccines for
patients. Delays between regulatory
approval and vaccines getting to
patients were still “commonplace”.
Approached about its work with
Sanofi, the MHRA said it could not com-
ment on specific products that might be
under consideration for licensing but it
remained “confident we will agree a
mutually advantageous deal with the
EU to help ensure patients continue to
have timely access to safe medicines”.
Addressing the Commons health
committee on Tuesday, Matt Hancock,
health and social care secretary, said the
government would “align MHRA proc-
esses so people applying for a new drug
in the future won’t have to have any
additional burdens to apply for MHRA
licensing”, adding: “I want to give the
maximum possible reassurance to
pharmaceutical companies . . . if your
drug can be approved by the EMA then
it is going to be approved in the UK,
under a deal or a no-deal scenario.”

Experian Health service Tory tensions

Rent payment history to be Scottish NHS financially PM quells backbench unrest

accepted in credit checks
JAMES PICKFORD
Regular rental payments will now be
recognised by a main credit reference
agency to help tenants with little credit
history to apply for a mortgage.
The Rental Exchange, a partnership
between credit reference agency Expe-
rian and the Big Issue group, allows ten-
ants to keep an official record of their
history of rental payments. From this
week that history will be displayed in
Experian’s credit reports, which are
used by lenders and other financial
institutions to judge creditworthiness.
The inability of tenants who may have
paid rent over years to use that evidence
when applying for mortgages, loans or
other financial services has been a grow-
ing source of frustration for aspiring
homeowners. Last year, a petition to the
government attracted 147,000 signato-
ries and was debated in parliament.
While the Rental Exchange scheme
was set up in 2014 for institutional land-
lords such as local authorities and social
housing providers, private tenants can
also self-report their rental payments to
the scheme, using rent reporting serv-
ices CreditLadder or Canopy.
Experian said more than 1.2m tenants
would see rental payments appear on
their credit reports. It estimated that the
credit score of nearly 80 per cent of ten-
ants would improve if rents were
included in their data.
Clive Lawson, managing director of
Experian Consumer Services, said it was
right for lenders to be able to recognise a
history of regular rental payments in a
similar way as mortgage payments.
“We’re already working with a range
of lenders who want to use rental data to
improve their understanding of a per-
son’s financial situation so they can
make higher quality decisions,” he said.
Ray Boulger, senior technical man-
ager at mortgage broker John Charcol,
said it was a “good first step” to making
rental payment information available to
lenders. “If lenders can see regular pay-
ments on the rent, that should enhance
the credit score. It’s going to help some
first-time buyers.”
unsustainable, says audit
MURE DICKIE — EDINBURGH
The performance of the Scottish
National Health Service declined last
year, with the state auditor warning the
system faced rising funding pressures,
struggled to retain staff and was bur-
dened by a big maintenance backlog.
The report from government watchdog
Audit Scotland exposed the difficulties
facing the NHS in Scotland and will fuel
criticism of the Scottish National party’s
record on health after more than a dec-
ade in government.
Spending per head on the devolved
health service is higher than in England
and the system is generally seen as
under less strain north of the border.
But the auditor said the Scottish NHS
was “not financially sustainable” and
SNP funding policies were inadequate.
The NHS needed to move urgently
away from “short-term firefighting” to
fundamental change, said Caroline
Gardner, auditor-general for Scotland.
“The performance of the NHS contin-
ues to decline, while demands on the
service from Scotland’s ageing popula-
tion are growing,” Ms Gardner said.
“The solutions lie in changing how
healthcare is accessed and delivered,
but progress is too slow,” she said.
Audit Scotland said the Scottish NHS
budget fell in real terms by 0.2 per cent
‘The solutions lie in
changing how healthcare
is accessed and delivered,
but progress is too slow’
in 2017-18 compared with the previous
fiscal year. NHS regional boards had
relied heavily on one-off measures to
achieve unprecedented savings of
£449.1m and it had become more diffi-
cult to find such savings.
At the same time, demand for the
service had increased. The Scottish
NHS’s performance against its eight
national waiting-time targets worsened
last year. It met only one waiting-time
target.
in plea to back her Brexit plan
LAURA HUGHES
Theresa May appeared to unify Con-
servative MPs and quell the threat of an
immediate rebellion last night after
making a “heartfelt” plea for col-
leagues to back her Brexit plan.
Westminster has been swept by
rumours the prime minister could face
an imminent vote of no-confidence
from rank-and-file MPs. But last night
she was met with thunderous applause
as she addressed a packed meeting of
the Tory backbench 1922 Committee.
The toughest questions came from
three Eurosceptic MPs, who raised con-
cerns about Brexit being delayed in the
event of no withdrawal agreement and
asked her to set out the three things she
had achieved during the talks.
But one Conservative MP said there
had been an “outbreak of unity” in the
meeting, after a weekend of veiled
threats in the media that she was enter-
ing the “killing zone”.
Amber Rudd, a former home secre-
tary, said Mrs May had addressed the
meeting with passion. “She spoke quite
emotionally about why she was doing
this for the good of the country and how
it was important that the public and our
party members realised we were behind
her and that we all wanted the same
thing,” she said. “She looked like she
really meant it. She wasn’t reading from
a script, she was talking frankly and
honestly from the heart about why she
was doing this and why it mattered.”
Michael Fabricant, a Brexiter MP,
described the meeting as a “love in”. “It
wasn’t Daniella in the lions’ den, it was a
petting zoo,” he said. “She lives to fight,
possibly until the next election.”
Mrs May firmly rejected reports yes-
terday that the European Court of Jus-
tice would be the final arbiter in dis-
putes arising from Brexit, after she was
challenged in Prime Minister’s Ques-
tions by Jacob Rees-Mog, the head of the
European Research Group of pro-Brexit
Conservative MPs.
She told MPs: “I haven’t seen those
particular reports . . . but if they are as
he has suggested then they are wrong.”
4 ★ FINANCIAL TIMES Thursday 25 October 2018

INTERNATIONAL

US Congress sours on Saudi

Riyadh response

Crown prince pledges to help

Turkey investigate death
ties after Khashoggi killing SIMEON KERR, ANJLI RAVAL
AND AHMED AL OMRAN — RIYADH
LAURA PITEL — ANKARA
discussed the need to shed light on all
aspects of the killing.
The conversation between the two
Legislators from both parties call for sanctions and a cancellation of arms sales Mohammed bin Salman, the Saudi
crown prince, has pledged to work with
men, poised on opposing sides of a series
of regional power struggles, came the
Turkey to investigate the killing of the day after Mr Erdogan suggested that
Saudi journalist Jamal Khashoggi, Khashoggi’s killing was premeditated.
KATRINA MANSON — WASHINGTON which he described as a “heinous inci- Saudi officials refused yesterday to
dent that cannot be justified”. allow Turkish police to search a well in
It is not often that politicians pull rank the garden of the Istanbul consulate,
on a Saudi prince. But when the king- In his first remarks since the murder, Anadolu reported.
dom’s ambassador to Washington was Prince Mohammed said the “painful” Prince Mohammed was joined on
late for a meeting with members of the episode had been used by some to drive a stage by Saad Hariri, Lebanon’s prime
Senate foreign relations committee this wedge between Turkey and Saudi Ara-
month, Democrat Robert Menendez bia. “They will not be able to do so as long
simply walked away. as there is a King Salman, a Crown Prince
‘[Khashoggi killing was a]
Bob Corker, the Republican chairman Mohammed bin Salman, and a president heinous incident that
of the committee, remained to inform in Turkey called Erdogan,” he said at an
Khalid bin Salman, the ambassador and investmentconferenceinRiyadh.
cannot be justified’
younger brother of powerful Saudi The Khashoggi killing at the Saudi Crown Prince Mohammed
crown prince Mohammed bin Salman, consulate in Istanbul three weeks ago
that it was not the done thing to keep US has turned into the gravest threat yet to minister, almost a year after his shock
senators waiting, according to two Prince Mohammed’s standing, interna- resignation while on a visit to the king-
people familiar with the matter. tionally and at home. dom in November 2017.
Riyadh may be ruing such slights to The crown prince used his appear- Even though Mr Hariri later reversed
Congress as lawmakers weigh punitive ance to give a long-awaited response to his decision, it was widely believed that
measures against the Gulf kingdom over the diplomatic storm that has engulfed he had been detained by Riyadh author-
its role in the killing of the Saudi dissi- the kingdom. His remarks came a day ities and forced to resign.
dent and journalist Jamal Khashoggi. after Donald Trump, US president, said Prince Mohammed, who has denied
“The Saudis have been somewhat cav- the Saudi operation had “been the worst these charges, joked about the incident,
alier in how they have handled their cover-up ever”, a sign of reluctance to pleading with the crowd not to start a
outreach to Congress and now they are accept the kingdom’s denial of high- rumour that the Lebanese leader had
going to reap the consequences,” said a level responsibility for the killing. been “kidnapped” while in Riyadh.
person familiar with thinking on Capitol Before taking the stage, Prince The crown prince described the
Hill. “They have been clumsy, more Mohammed spoke to Recep Tayyip development of the region as his main
focused on outreach via television and Erdogan, Turkey’s president, by tele- mission, highlighting a host of Arab
. . . image consultants than spade work phone for the first time since the death countries from Oman to Egypt as
on the Hill and the serious work of win- of Khashoggi. The conversation took nations with great economic potential.
ning people over to policy argument.” place at the behest of Prince Moham- “This is the war of Saudis. This is my
Congressmen on both sides of the med, according to Turkey’s state-run war. I don’t want to leave this life until
aisle have called for sanctions against Anadolu news agency, which said they the Middle East is at the front,” he said.
Saudi Arabia and the cancellation of
arms sales that President Donald
Trump wants to go ahead. Several
Washington lobbyists have also dropped Finance ministry
the kingdom over the killing of
Khashoggi in the Saudi consulate in
Istanbul and subsequent cover-up.
Saudi Arabia has spent much of the
South Africa faces ‘difficult
past two years courting the White
House, with considerable success. But
choices’ as growth outlook cut
wider congressional support for Riyadh
had been eroded over the course of the
Trump administration even before JOSEPH COTTERILL — JOHANNESBURG allies from institutions such as the reve-
Khashoggi’s death and despite the presi- nue service and the boards of state-
South Africa’s finance minister slashed
dent’s efforts to put Riyadh at the heart owned companies.
growth forecasts and warned of a
of Middle East policy. His job has been complicated by
higher deficit this year as he outlined a
Lindsey Graham, the Republican sen- recent instability within the Treasury.
deteriorating set of public accounts
ator who is both close to Mr Trump and Crown Prince against Riyadh. Mr Trump added that as an important issue for core voters. On Mr Mboweni, a former central bank
that underlined the challenges facing
a supporter of the US-Saudi relation- Mohammed bin the Khashoggi case was the “worst cov- the eve of Prince Mohammed’s three- governor, was this month appointed as
President Cyril Ramaphosa.
ship, recently described Prince Moham- Salman, centre, er-up ever” and said he would support president week US visit last year, a Gallup poll South Africa’s fifth finance minister in
med, whose image has been badly tar- at the Saudi bipartisan efforts in Congress to punish will act found that 55 per cent of Americans Delivering the government’s fiscal out- three years after the scandal-clouded
nished by Khashoggi’s death, as a investment the kingdom. Mr Trump has previously viewed his country unfavourably, in line look, Tito Mboweni said Africa’s most exit of Nhlanhla Nene.
“wrecking ball” who “has got to go”. conference this said he wanted to preserve weapons because he with negative annual ratings since the industrialised economy, which fell into Mr Nene quit after failing to disclose
Meanwhile, Mr Corker and Mr week. Below, sales, arguing that stopping proposed knows September 11 2001 attacks, in which 15 recession this year, would grow only links to the powerful Gupta family, the
Menendez, the slighted senators who Senator Lindsey deals adding up to $110bn would hurt of the 19 hijackers were Saudis. 0.7 per cent this year versus earlier business dynasty accused of using Mr
head the committee responsible for Graham, who the US more than the Saudis. Congress is “The US has much more leverage with Treasury predictions of more than dou- Zuma’s friendship to influence cabinet
approving US overseas arms sales, have described the “The president will act because he going to act’ the Saudis than the Trump administra- ble that rate. The budget deficit would appointments and state contracts when
initiated a bipartisan legal effort to Saudi prince as a knows Congress is going to act, so he will tion initially seemed to think,” said increase to 4 per cent this year, com- he was president.
impose sanctions against Riyadh. ‘wrecking ball’ pre-empt,” said a person close to Mr Jamie Fly, a senior fellow at the German pared with the 3.6 per cent expected The Treasury is battling to keep the
The administration has 120 days to Amr Nabil/AP; Brendan
Smialowski/AFP/Getty Images
Trump, who added that those surround- Marshall Fund think-tank. He cited Riy- previously, while government debt lev- country’s last investment-grade credit
respond and determine whether an ing the president had also counselled adh’s reliance on US support for its war els would not stop rising until well into rating, with Moody’s; Fitch and S&P cut
extrajudicial killing took place. If it did, that the Saudis needed to be censured. in Yemen and strategy to counter the the next decade, he said. their ratings to junk last year. The agen-
the administration would have to Mr Trump has licence to act because influence of Iran, as well as wider busi- “South Africa finds itself at a cross- cies have raised concerns about the
impose sanctions on those involved US support for Saudi Arabia is not seen ness and diplomatic ties. roads,” Mr Mboweni said as he warned finances of state-owned companies such
under the Global Magnitsky Act. According to congressional aides, sen- of “difficult choices” for the country’s as the power utility Eskom, whose debts
“We are putting all our weight behind ators might stop short of calling for finances due to a shortfall in tax reve- have state guarantees. Many were at the
the Global Magnitsky request,” said a Prince Mohammed to be personally nues, rising public sector wages and the centre of alleged graft tied to the Guptas,
senior Senate aide. “We do not want to sanctioned over Khashoggi’s killing. But high levels of indebtedness of many who deny wrongdoing as does Mr Zuma.
sanction the low-hanging fruit, we want Mr Trump may face a tougher fight over state-owned companies. “We cannot Underlining the scale of the institu-
to go as high as possible.” arms sales. The Trump administration continue to borrow at this rate.” tional decay facing Mr Ramaphosa, Mr
Mr Trump, who is banking on Saudi has so far secured congressional Mr Ramaphosa has pledged to revital- Mboweni said that out of R50bn
Arabia to offset the fall in oil exports approval for $14.5bn in arms sales to ise South Africa’s moribund economy ($3.5bn) in spending that was being
from Iran as US sanctions are imposed Riyadh, but another deal for so-called and overturn the corruption and decay “reprioritised” to boost the economy,
on Tehran, has taken an increasingly smart bombs to be used in Yemen is up of state institutions that marked his 16.5bn rand would go to rebuilding the
hard line on the Khashoggi case. for congressional approval, and several predecessor Jacob Zuma’s presidency. South African Revenue Service.
He praised Prince Mohammed at the more will fall due after that. The ruling African National Congress The opposition Democratic Alliance
weekend, describing the crown prince Mr Fly said: “If the administration forced Mr Zuma from office last year. said Mr Mboweni had presided over a
as a strong leader who loved his country. wants to continue arms sales to Saudi, But Mr Ramaphosa, a trade unionist “full-scale budget blowout” with the
But on Tuesday he said there would they are going to need to address con- turned tycoon, has faced resistance as cost of servicing government debt now
have to be “some kind of retribution” gressional concerns.” he has set about removing Mr Zuma’s matching spending on basic education.

Upstart crows

Trump vs the Valley

FRIDAY 31 MARCH 2017

Tech titans need to minimise

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Subscribe to the Financial Times today capable of making compound tools. the crows received no assistance or
The researchers describe this “aston- training in making these combinations.
Morning briefing. Midday analysis. Mobile updates. Subscribe to ishing mental feat” in the journal Scien- 3 They figured it out by themselves,” said
the FT and you’re better informed all day. tific Reports. The crows worked out if Auguste von Bayern, a member of the
The crows, which live wild on the they joined two or more research team.
With newspaper delivery, you start the day prepared.* With FT.com, South Pacific island of New Caledonia, tubes together . . . Alex Kacelnik, who founded Oxford’s
you’re on top of the news throughout the day. And with mobile have been famous for their cognitive Behavioural Ecology Group, is working
and tablet access, you’re up to speed wherever you are. abilities since 2002 when Betty, a cap- with technologists at the Technical Uni-
tive bird in Oxford, worked out that she versity of Berlin to investigate crow intel-
could fish an otherwise unobtainable ligence. “Similar processes are being
treat out of a box by bending wire into a 4 modelled on artificial intelligences and
Visit FT.com/subscribenow hook — the first animal to demonstrate implemented in physical robots, as a way
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*Terms and conditions can be found at www.ft.com/subscribenow presented with a selection of short cyl- Sources: Scientific Reports; FT research releasing the treat reach autonomous creative solutions to
inders with slightly different diameters, Graphic: Graham Parrish novelproblems,”hesaid.
Thursday 25 October 2018 FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Thursday 25 October 2018

INTERNATIONAL

European relations PMI

Italy lauds Putin and sets up Brussels battle Trade war

Rome expands pro-Russia
rhetoric and is eager to
soften impact of sanctions
MILES JOHNSON — ROME
MICHAEL PEEL — BRUSSELS
Giuseppe Conte, Italy’s prime minister,
hailed Russia as a “strategic partner” as
he met President Vladimir Putin in
Moscow yesterday.
The meeting was the culmination of a
month of diplomatic overtures by
Rome’s populist coalition, which has
ramped up its pro-Russia rhetoric.
In doing so, Italy is setting up a possi-
ble battle with fellow EU states over the
bloc’s painstakingly agreed sanctions on
Russia over its 2014 annexation of Cri-
mea — with Rome keen to find ways to
soften their impact and accommodate a
more open attitude to Moscow.
Speaking to Italian business leaders in
Moscow, Mr Conte said Russia was a
strategic partner. “From the very begin-
ning I have shown particular attention
to this country,” he said. “I am here
today to demonstrate to President Putin
Italy’s constant willingness to engage in
dialogue: sanctions cannot be an end
but a means of resolving differences.”
The Italian premier later told the Rus-
sian president that he had been “miss-
ing for too long” from Italy. “I do not
want the Italian people to think that you
do not pay attention to them.”
This month there have been trips to
Germany. Hesse poll
Russia by Enzo Moavero Milanesi, for-
eign minister, who held talks with coun-
terpart Sergei Lavrov, and Matteo Sal-
vini, deputy prime minister and leader
of the hard-right League.
While Italian governments have long
been friendly towards Russia, observers
believe Rome’s new populist coalition
has shown a greater willingness to
confront institutional norms and con-
straints, as seen in its fight with the EU
over its spending plans. “The difference
is that whereas previous governments
went with mainstream international
consensus, this Italian government is far
more willing to challenge Nato and the
EU,” said Nathalie Tocci of the Rome-
based Institute of International Affairs.
Igor Pellicciari, a professor at Urbino
university and Luiss, said opposition to
sanctions against Russia was one of the
few areas of foreign policy the League
and the Five Star Movement, the other
party of government, agreed on.
Mr Salvini, perhaps the government’s
most influential voice, has repeatedly
called for the lifting of sanctions,
describing them in Moscow as “eco-
nomic, social and cultural madness”.
Behind the scenes, Italy has tenta-
tively proposed softening the EU stance
towards Russia while maintaining that
sanctions must be respected.
In June, Rome used an EU summit to
float the idea of resuming lending by the
European Bank for Reconstruction and
Development to businesses in Russia.
The idea went nowhere but was
revived in a paper circulated by Rome to
fellow member states, said diplomats
briefed on the matter. Some EU diplo-
mats expect another Italian initiative on
Russia at the next summit in December.
Governments would need to endorse a
further six-month extension, due in Jan-
uary, of sanctions against Moscow over
its occupation of Crimea.
The measures are linked to Russia’s
compliance with the stalled Minsk
accords to end the conflict in eastern
Ukraine. “As Russia is not implement-
ing the Minsk agreements, we do not see
the possibility to change the EU sanc-
tions policy,” said one diplomat from an
EU member state, adding that the oppo-
sition was “broad”.
Opinion page 11
hits business
sentiment
in eurozone
CLAIRE JONES — FRANKFURT
Fears of a lengthy slowdown in euro-
zone growth intensified yesterday after
a poll of sentiment fell to its lowest level
in more than two years.
The sharp decline in the purchasing
managers’ index reflected signs that the
global trade war is having broad reper-
cussions on the economy of the world’s
largest trading bloc.
The index reading for the single cur-
rency area fell to 52.7 in October, down
from 54.1 in September, and the lowest
figure for 25 months. The euro slipped
following the publication of the German
component of the index, which was
worse than expected and also slid to
52.7, the lowest level since early in 2015.

Merkel fights for future as voter anger grows
Chancellor’s grand coalition
and migration policy blamed
for party’s declining support
GUY CHAZAN — LANGGONS
As Christian Democrats gathered for
beer and speeches in the village of Lang-
göns last week, an oompah band broke
into “Every Day Brings New Hope”, a
popular local folk song. But for Ger-
many’s largest political party, hope is in
vanishingly short supply.
Polls ahead of Sunday’s regional elec-
tion in Hesse show the CDU heading for
one of its worst results in the state. If
they are right, Hesse will throw German
politics into disarray and spell the
beginning of the end for Chancellor
Angela Merkel.
Unemployment is low in Langgöns, a
village of 11,000 in Hesse’s agricultural
heartland, and the economy is booming.
But the mood among locals is ugly. “A lot
of voters say they support me as a candi-
date but they really don’t want to vote
CDU this time,” said Marius Reusch,
who is running for mayor. “When you
ask why, they say: ‘Merkel’.”
After 13 years in office, Europe’s most
powerful woman faces a week that
could determine her fate. A bad result in
Hesse, where her CDU has held power
since 1999, could irretrievably dent her
authority and cast doubt on her future
as CDU leader six weeks before she has
to stand for re-election.
In Langgöns Volker Bouffier, the
CDU’s local party chief and the state’s
premier, urged activists to do all they
could to get out the vote. “It’s about
nothing more and nothing less than sav-
ing the world,” he said, with just a touch
of pre-election hyperbole.
Home to Frankfurt, Germany’s
finance capital, Hesse has been ruled for
19 years by the CDU, the last five in an
unusual coalition with the Greens. But
when it comes to the next five years, all
bets are off: the CDU is at just 26 per
cent, down 12 percentage points since
the previous election in 2013.
Mr Bouffier blamed his party’s slump
on Ms Merkel’s “grand coalition” in Ber-
lin, which has been embroiled in argu-
ments practically since it took office in
March. There was the blistering row last
June between the CDU and the CSU, its
Bavarian sister party, over asylum pol-
icy, followed by the dispute over Hans-
Fading powers: Georg Maassen, who was sacked as head
Angela Merkel of domestic intelligence.
speaks at a CDU “When a government gives the
rally in Dieburg, impression that it is just constantly
Hesse, on fighting, then people lose confidence in
Tuesday it, and the potential of protest parties
Ralph Orlowski/Reuters
just keeps growing,” Mr Bouffier told the
Financial Times. “People’s perception of
the grand coalition is really very bad
right now and they make no distinction
between Hesse and Berlin.”
Ms Merkel is making four campaign
appearances in Hesse this week. But she
may be more of a hindrance than a help.
Many voters in the state remain angry at
her “everyone welcome” refugee policy
of 2015-16. Letting in more than 1m
migrants “violated their sense of justice
and order”, said Mr Reusch.
Watching Mr Bouffier’s speech, Wal-
ter Künzig, a mechanic from Langgöns,
said he had always voted CDU but would
switch to the far-right Alternative for
Germany. “They’re the only party that
recognises the danger from these immi-
grants,” he said. “Islam is like commu-
nism: it wants to take over the world.”
Other factors have weighed on the
CDU. Local car owners are furious at the
diesel ban recently ordered by a Frank-
furt court in an effort to improve air
quality in the city.
The CDU is not the only party looking
nervously towards Hesse. In a sign of the
collapse in support for all of Germany’s
traditional parties, the SPD’s poll ratings
have also fallen precipitously. A bad
result would bolster those in the party
who want it to quit Ms Merkel’s coali-
tion, a move that would almost certainly
trigger new elections and put her chan-
cellorship in jeopardy.
For that reason Ms Merkel might need
an acceptable result for the SPD almost
as much as one for her CDU.
So far the only party with grounds for
optimism is the Greens. Fresh from a
stunning result in Bavaria this month,
where it came second with 17.5 per cent
of the vote, the party is polling at 22 per
‘When a cent in Hesse, double its result from
2013 and ahead of the SPD. The Greens
government might be able to form a leftwing coali-
gives the tion with the SPD and hard-left Die
Linke, forcing Mr Bouffier from power.
impression The party could also renew its coalition
that it is just with the CDU, perhaps with the addition
of the pro-business FDP, or team up
constantly with the SPD and FDP.
fighting, Whatever the alliance, the Greens will
be more assertive. Tarek Al-Wazir, the
then people party’s top candidate in Hesse, said they
lose were no longer there to make up the
numbersandhelpotherpartiestopower.
confidence’ “We’renotjusttheherbssprinkledonthe
meal,”hesaid.“Wearethemealitself.”
In Langgöns, there was talk of Hesse
as a German success story. Wages were
the highest in the country, Mr Bouffier
said. Never had so many people been in
work in the state. Only the CDU could
safeguard those achievements. But that
message had failed to get through to
voters, said Mr Reusch. “Berlin has
overshadowed everything.”
The gauge of economic confidence
comes ahead of a European Central
Bank meeting today, with the bank set
to confirm it plans to end the expansion
of its quantitative easing programme
this year despite mounting evidence
that economic threats are materialising.
‘It is the decline in the
services PMI that will
concern the ECB’
Cathal Kennedy
“The slowdown is being led by a drop
in exports, linked in turn by many sur-
vey respondents to trade wars and tar-
iffs, which appears to have darkened the
global economic environment and led to
increased risk aversion,” said Chris Wil-
liamson, an economist at IHS Markit,
which compiles the poll.
The eurozone grew strongly in 2017
but export activity has slowed over the
course of this year as tension between
Beijing and Washington has mounted.
The ECB, which is lagging behind
other central banks in normalising int-
erest rates, remains keen to press ahead
with plans to end QE, a centrepiece of
the economic stimulus it devised to help
the eurozone through its financial crisis.
The bank hopes a stronger labour
market, with more jobs and sharper
wage increases, will compensate for the
impact of anti-globalisation sentiment
on trade. However, sub-readings sug-
gested that the slowdown in growth was
affecting the services sector, which is
much larger and more reliant on inter-
nal demand than manufacturing.
“It is the decline in the services PMI
that will concern the ECB,” said Cathal
Kennedy, European economist at RBC
Capital Markets. “[It] suggests that
domestic activity may not be as well pla-
ced to cushion the impact of a weaker
external environment . . . as the ECB
would have hoped.”
While the PMI remains above 50,
which marks an expansion in activity, it
was at a level that has been consistent
with the ECB’s loosening monetary pol-
icy, Mr Williamson said. “Forward-
looking indicators, such as measures of
future expectations and new business
inflows, suggest further momentum
could be lost in coming months.”
The figure followed the publication of
readings for the region’s two largest eco-
nomies, Germany and France. The
reading for France rose to a high of 54.3,
but a sub-reading for manufacturing hit
48.8, indicating a contraction.
Additional reporting by Damian Fantato
Editorial Comment page 10

Shortage risk Competition concerns

Drought-hit Rhine leaves industrial supplies high and dry
DAVID SHEPPARD — LONDON
GUY CHAZAN — BERLIN
Plummeting water levels in the
drought-hit river Rhine are disrupting
shipping and squeezing European sup-
plies of important industrial commodi-
ties from coal to motor fuel.
Switzerland tapped its emergency
stockpiles of diesel this week after some
stretches of the river receded to knee-
high levels and fuel barges could not
reach the country. The shortage of deliv-
eries sent prices at the pump soaring, a
reaction more commonly associated
with war in the Middle East than dry
weather in Germany.
BASF, the German chemicals group,
has had to curtail production at the
world’s largest integrated chemicals
facility at Ludwigshafen. It warned of
potential shortages of certain products,
creating supply chain headaches for
industries across the continent.
“With the current water level, only a
few barges can dock,” BASF said. “Even
if some goods are transferred to alterna-
tive means of transport such as trucks or
trains, the supply of some important
raw materials will be restricted.”
The disruption highlights the role that
the 1,200km river, a vital waterway for
international trade since the days of the
Roman empire, still plays in carrying
seaborne goods through Germany’s
industrial heartland.
Water levels in the river are at their
lowest since the 1920s after a prolonged
drought, sparking concern from busi-
nesses and governments over the poten-
tial economic impact and raising ques-
tions about how climate change will hit
Europe’s transport infrastructure.
Christoph Kösters, head of German
transportation lobby group the VVWL,
The river Rhine in Speyer, Germany, yesterday — Ronald Wittek/EPA-EFE/Rex/Shutterstock
said the problems started with low lev-
els of Alpine snowmelt this spring fol-
lowed by a dry summer.
“We had the problem this year that
there was relatively little melted snow
and ice coming down into the Rhine,”
Mr Kösters said. “A lot of goods have
been warehoused in anticipation of this
problem. But the longer this situation
persists, the bigger the risk of shortages.
In a few weeks, it could get harder.”
In Cologne, the biggest city on the
Rhine, the average water level is nor-
mally more than three metres but has
fallen below 70cm in parts. The lowest
level in recorded history, in 1929, was
61cm, a level officials think could be sur-
passed soon if rain does not arrive. Ferry
services have been halted at many
points along the river.
S&P Global Platts, which provides oil
and commodities coverage, said barges
were struggling to enter the upper
Rhine beyond Kaub, a shipping choke-
point between Koblenz and Mainz.
Traders have struggled to find alter-
native means of transport at short
notice. “Though railcars and trucks are
often considered an alternative to barge
shipments along the Rhine, possible
capacities appear to have been
reached,” S&P Global Platts said.
The cost of available barges has risen
from just $4-$5 per metric tonne to
more than $40, a cost likely, ultimately,
to be passed on to consumers.
The price of heating oil, which many
German and Swiss homes rely on in the
winter months, has jumped in areas
serviced by the river. While weather
forecasts predict showers, many expect
a deluge will be needed to make a signifi-
cant difference. “We’re really hoping for
a wet autumn,” said Mr Kösters.
Additional reporting by Ralph Atkin
Franco-German rail merger
sparks EU fears over prices
ROCHELLE TOPLENSKY — BRUSSELS
Brussels is to warn Siemens and Alstom
of its concern that the companies’
plans to merge their rail business and
create a European champion could
harm EU competition.
Margrethe Vestager, the EU’s competi-
tion commissioner, will send the Ger-
man and French groups a so-called
statement of objections within the next
week, detailing fears that the combina-
tion could raise prices, cut choice and
harm innovation, two people familiar
with the case said.
The decision shows EU officials still
have significant concerns and raises the
prospect the companies will have to
make substantial divestments to win
approval for the merger.
It follows Brussels’ decision to open an
in-depth review of the tie-up in July,
when Ms Vestager warned that it could
deprive European rail operators of a
choice of suppliers and spark price rises
that would ultimately harm consumers.
Ms Vestager has pushed back against
the deal despite the strong political
backing for the companies’ plans in
both Berlin and Paris — an uncomforta-
ble position as she enters the last year of
her term in office. Ms Vestager is often
mentioned as a candidate for another
commission job, perhaps even succeed-
ing Jean-Claude Juncker as president.
French and German officials, along
with company executives, have argued
that EU officials should assess the deal
in global terms, saying the tie-up is
needed to create a European champion
capable of challenging Beijing-backed
CRRC, the world’s largest train maker.
After their initial investigation, EU
officials found that the Siemens-Alstom
group would have a market share three
times that of its nearest competitor in
high-speed trains and signalling. That
led industry experts to believe the com-
panies could have to sell one of their
divisions, but this might also undermine
the logic of the deal.
Ms Vestager is due to rule on the
merger by January 28, although that
could be delayed.
Thursday 25 October 2018
‘Act of terror’
‘Explosive’ mail sent to Clinton and Obama
Cuomo and CNN receive
‘live’ devices in incidents
condemned by Trump
KADHIM SHUBBER AND DEMETRI
SEVASTOPULO — WASHINGTON
JOSHUA CHAFFIN — NEW YORK
Former president Barack Obama and
Hillary Clinton have been targeted by
suspected explosive devices sent in the
mail, while a similar “live” package was
received at the CNN offices at the Time
Warner Center in New York.
In a briefing outside the building, Bill
de Blasio, New York mayor, described
the incident as an “act of terror”.
“What we saw here today was an
effort to terrorise,” said Mr de Blasio:
“This is a very painful time in our
nation. And it’s a time when people are
feeling a lot of hatred in the air. Inci-
Nato war games stir Arctic angst for Russia
Scale of exercise highlights
deepening distrust between
alliance and Moscow
MICHAEL PEEL — BRUSSELS
HENRY FOY — MOSCOW
Nato is to launch the combat phase of its
biggest military war game since the cold
war, drawing Russian accusations of
“sabre-rattling” by the transatlantic
security alliance.
Tens of thousands of troops and doz-
ens of ships will be deployed during
manoeuvres starting today, in a mock
battle against an invading force in Nor-
way’s northern reaches.
Nato insists the operation, Trident
Juncture, is not aimed at Russia, despite
east-west tensions, including over Mos-
cow’s annexation of Crimea and Wash-
ington’s vow to quit a cold war nuclear
arms control deal.
The exercise also underlines the geo-
political battle over the Arctic, where
global warming has opened up areas for
potential economic exploitation. Russia
is attempting to position itself as the
leading military power in the region and
is beefing up its defence presence.
“In recent years, Europe’s security
environment has significantly deterio-
rated,” Jens Stoltenberg, Nato’s secre-
tary-general, told reporters in Brussels
in a briefing yesterday ahead of the war
game. “The scenario is fictional but the
lessons we learn will be real.”
The exercise is due to involve 50,000
personnel, 10,000 vehicles, 250 aircraft
and 65 ships, including the USS Harry S
Truman aircraft carrier strike group. All
29 Nato countries, and Finland and Swe-
den, will join in, with contingents from
as far afield as San Diego and Izmir in
Turkey.
Admiral James Foggo, who will over-
see the exercise, from the USS Mount
Whitney, has said the exercise is a “mes-
sage to anyone who might conduct any
kind of aggressive act” to cause the alli-
ance to invoke its “Article 5” vow of col-
lective defence. General Rune Jakobsen,
commander of the Norwegian joint
headquarters, has said there is no need
for Moscow to “get scared”, as the core
exercise is due to take place 1,000km
from the Russia border, while air opera-
tions will be at least 500km away.
Military influence
Mauritius runway project poised to boost India in China tussle
DAVID PILLING — PORT LOUIS
India will extend a runway and build
port facilities on the Mauritian archi-
pelago of Agaléga in what security
experts say is a significant boost for
New Delhi in its tussle with China for
military influence in the Indian Ocean.
Agaléga consists of two sparsely popu-
lated islands about 600 miles north of
Mauritius, a beach holiday destination
that also boasts a huge exclusive eco-
nomic zone of 2.3m sq km, roughly the
size of India’s.
The exact nature of construction is
shrouded in secrecy. However, Abhijit
Singh, a former Indian naval officer and
head of the Maritime Policy Initiative at
the Observer Research Foundation in
Delhi, said the plan was to double the
length of the runway to 3,000 metres
and build a jetty as well as a transponder
system to identify ships as friend or foe.
The runway extension would allow
both Mauritius and India to land bigger
aircraft, which would give Delhi “better
maritime awareness” in that part of the
Indian Ocean, Mr Singh said.
In answers to questions from the FT,
dents like this exacerbate that pain and
exacerbate that fear.”
James O’Neill, NYPD commissioner,
said the device sent to the office
“appeared to be a live explosive device”
and that it had been accompanied by an
“envelope containing white powder”.
Andrew Cuomo, New York governor,
revealed at the briefing that a device had
been sent to his office. “Let’s just take
this as a warning sign that the hot rheto-
ric can push some people to do violent
things,” Mr Cuomo said, appealing for
politicians and citizens to soften the
tone of their political disagreements.
The Secret Service said a package
addressed to Mrs Clinton in New York
state was recovered late on Tuesday,
while another parcel sent to Mr Obama
was intercepted in Washington early
yesterday.
The FBI said it was investigating “a
Security. Border tension
Action stations: But the scale of the manoeuvres,
troops leave which will also include elements of
a ferry in cyber and hybrid warfare, is another
Rotterdam on marker of the deepening distrust
their way to the between Moscow and Nato capitals.
Nato exercise President Donald Trump has warned in
in Norway the past week that he will pull out of the
this month 1987 Intermediate-Range Nuclear
Dean Mouhtaropoulos/Getty
Images
Forces missile ban treaty because Rus-
Exercise Trident Juncture
me
riti
Ma
Pravind Jugnauth, Mauritius premier,
confirmed that “India would be allowed
to utilise the facilities in Agaléga subject
to prior notification from the competent
authorities of Mauritius”.
Afcons, an Indian company, has won
the 3bn Mauritian rupee ($87m) con-
tract for the works which would be
“fully funded by the government of
India on a grant basis” and include “a
jetty and an airstrip with associated fac-
ilities”, Mr Jugnauth said.
“This is meant to improve the connec-
tivity with mainland Mauritius and sup-
port economic development of Agaléga
to the benefit of the people,” he added.
However, the plan has provoked
opposition among many of the roughly
300 Agalégans, some of whom fear the
islands could be ceded to India.
In 1965, before Mauritian independ-
ence from the UK, London split another
archipelago, the Chagos islands, from
Mauritius, forcibly relocating the inhab-
itants and allowing the US to build a mil-
itary base on Diego Garcia. Many Agalé-
gans fear they could suffer a similar fate.
“I and all the people of Agaléga are
worried about this project because the
★ FINANCIAL TIMES
INTERNATIONAL
suspicious package found in the vicinity
of the Clinton residence”.
“We condemn the attempted attacks
against fmr Pres Obama, the Clintons,
“The packages were immediately id-
entified during routine mail screening
@CNN & others. These cowardly
actions are despicable & have no place in
procedures as potential explosive
devices,” said the Secret Service, adding
this Country. Grateful for swift response
of @SecretService, @FBI & local law
enforcement. Those responsible will be
brought to justice,” Mr Pence posted.
‘Let’s take this as a warning Mrs Clinton responded to the events
that hot rhetoric can push from Florida, where she was speaking:
“We are fine thanks to the men and
people to do violent things’ women of the Secret Service . . . Every
Andrew Cuomo, NY governor day, we are grateful for their service and
commitment. And obviously, never
that the intended recipients “did not more than today. But it is a troubling
receive the packages nor were they at time, isn’t it?”
risk of receiving them”. The discovery of the devices, which
President Donald Trump responded appear to have targeted left-leaning pol-
about 90 minutes after the alert was iticians and groups, comes two days
raised, saying: “I agree wholeheartedly”, after the discovery of an explosive
referring to a tweet from Mike Pence, device at the home of George Soros, and
the vice-president. two weeks before US midterm elections.
sia is violating it — a charge echoed by ‘The
Mr Stoltenberg, but denied by Moscow.
Russia’s defence minister said yester- scenario is
day that Nato was practising “offensive fictional but
manoeuvres” on the country’s borders.
“The scale of operational and combat the lessons
training near our borders is expanding, we learn
its intensity is growing. [Nato] member
states are practising offensive combat will
be real’
Jens
N O R W AY Stoltenberg
Air
Land FIN LA ND
and s largest war games since the cold war,
amphibiou
RU S SI A
SWEDEN
Maritime
Mauritian government is hiding many only will the people of Agaléga be able to
things,” said Arnaud Poulay, a resident. continue living on the island, Mauritian
“We are against a military base on sovereignty will not be affected.”
Agaléga,” he said. “I am very frightened Brahma Chellaney, an Indian expert
to be from Agaléga now.” on security issues, said using Agaléga as
José Moirt, a lawyer and rights activ- a “logistics hub” could help Delhi “sus-
ist, said residents could be expelled. tain naval operations in the south-west
“There is clearly a policy in place for Indian Ocean”. He described China as
them to leave the island.” “an outside power” seeking a naval
Mr Jugnauth denied any threat: “Not presence in “India’s maritime back-
yard” in what he said was a provocation
to India and others.
INDIA The US, France and Britain, he said,
Arabian were also “getting anxious about what
Sea China is up to”, including its recent con-
SRI struction of a military base in Djibouti
LANKA
on the Red Sea as well as ports in Sri
Maldives
Lanka and Pakistan.
In 2015, when Narendra Modi, India’s
prime minister, visited Mauritius, the
Seychelles two countries signed a memorandum of
Chagos understanding to “improve sea and air
Islands transport facilities” on Agaléga, includ-
Agaléga INDIAN ing the provision of telecommunica-
Islands OCEAN tions equipment. This May, the national
assembly was told the India-Mauritius
deal was “subject to confidentiality”.
Mauritius 1,000km Additional reporting by Joseph Cotterill
from Port Louis
As Republicans and Democrats step
up political attacks against each other
ahead of the midterms, Mr Trump has
described Democrats as a “mob”. He has
also accused Mr Soros, the Hungarian-
born investor and philanthropist, of
paying protesters, without any evidence
to back the claim. His accusations have
proved popular at political rallies.
In Montana last week, Mr Trump
claimed that the people who protested
in Washington during the confirmation
hearings for Brett Kavanaugh were
funded by Mr Soros.
Sarah Sanders, White House press
secretary, condemned the “attempted
violent attacks”. “These terrorising acts
are despicable, and anyone responsible
will be held accountable to the fullest
extent of the law,” she said.
Additional reporting from Anna Nicolaou
in New York
manoeuvres,” Sergei Shoigu said in a
meeting with Belarusian military offi-
cials.
“Nato’s military activity near our bor-
ders has reached a high level unprece-
dented since the cold war,” he added.
“The alliance’s policy is aimed at
increasing its forward military presence
on the eastern flank.”
The Russian foreign ministry has pre-
viously accused Nato of “reckless sabre-
rattling” in the greater Arctic and vowed
that Russia will “take the necessary tit-
for-tat measures to ensure its own secu-
rity”.
Russia and Norway share a 196km
land border but it is the increased focus
on the Arctic that has ratcheted up the
tension between the two neighbours.
Russia’s condemnation of Nato comes
a month after the country staged its
inviting Chinese troops to take part in
land, sea and air exercises in Siberia and
the country’s far east.
Last year Russia conducted mass war
games with Belarus, close to the EU’s
eastern frontier.
Business support
South Korea unveils stimulus plan
SONG JUNG-A — SEOUL
South Korea has announced fresh
measures to boost economic growth
and create jobs by offering financial
support for smaller companies and a
cut in fuel tax to spur consumption.
The moves come as the administration
of President Moon Jae-in faces growing
pressure to revitalise a stalled economy
and weak jobs market. South Korea’s
export-driven economy is threatened
by the worsening trade war between
Washington and Beijing as well as
China’s slowing economic growth.
Kim Dong-yeon, finance minister,
warned yesterday that the economic
outlook could worsen due to the exter-
nal risks and pledged to mobilise all pos-
sible means to prop up investment and
accelerate deregulation.
“It is very unlikely the economy and
job conditions will improve any time
soon,” Mr Kim said. “We need to take
pre-emptive measures to revive the
economy and create jobs.”
The action plan includes Won15tn
($13bn) in financial support for small
and mid-sized enterprises — in the form
7
Diplomacy
Abe seeks to
warm Japan’s
relations with
China during
Beijing visit
ROBIN HARDING — TOKYO
TOM MITCHELL — BEIJING
Shinzo Abe will arrive in Beijing today
for meetings with President Xi Jinping
and Premier Li Keqiang, in what prom-
ises to be a much warmer affair than his
last trip to the Chinese capital four
years ago.
Mr Abe’s visit is the first formal bilateral
visit by a Japanese prime minister to
Beijing since a crisis erupted over the
Senkaku Islands, known in China as the
Diaoyutai, in 2012. Mr Xi did reluctantly
receive Mr Abe on the sidelines of an
Apec summit in Beijing in November
2014, in an encounter remembered for
the two leaders’ downcast faces
and reluctant handshake.
This week’s meeting between the two
men represents the penultimate stage in
Mr Abe’s long quest to normalise rela-
tions with China, which would culmi-
nate with a return visit to Japan by Mr Xi
next year. The Japanese prime minister
has been aided by Beijing’s fears
of international isolation as the US pres-
ident, Donald Trump, escalates his
trade war, and also its desire to boost
Japanese investment as economic
growth slows.
Japanese investment into China
plunged in 2013-15 before stabilising in
2016 and increasing 5.1 per cent last
year, according to China’s commerce
ministry. China is also Japan’s largest
trading partner, with bilateral trade
amounting to $300bn a year, compared
with $200bn between Japan and the US.
Shi Yinhong, a foreign affairs expert
at Beijing’s Renmin University, said Mr
Xi realised he needed to “change China’s
relationships with surrounding coun-
tries, which generally speaking have not
been good”. Growing tension with the
US, Prof Shi added, gives “the warming
relationship between China and Japan
additional strategic significance”.
“We don’t want to see US-China trade
issues damage the international econ-
omy,” said one Japanese official, adding
that bilateral relations between the
world’s second- and third-largest econo-
mies “returned to a normal trajectory”
as Mr Abe, Mr Xi and Mr Li prepared for
this week’s meetings. Their talks are
expected to focus on trade and invest-
ment issues as well as North Korea.
The challenge for Mr Abe is how far to
take rapprochement with China at a
time when the strategic situation has
not changed and Washington’s relation-
ship with Beijing is heading towards
confrontation. Japan’s business commu-
nity is eager for better ties; the foreign
policy establishment is more cautious.
“Japan would like to go back to 2008
when there were talks about joint
resource development in the East China
Sea,” said Shin Kawashima, an associate
professor in international relations at
the University of Tokyo. That is not on
offer, however, with Chinese vessels
continuing to make forays into waters
around the disputed islands.
While Mr Trump’s bellicose attitude
to China has created the diplomatic
opening for Mr Abe, he does not want to
side with Beijing against Washington, or
give any impression he is undermining
US policy. “Japan has to be extremely
careful of the US view when dealing with
China,” said Mr Kawashima.
Additional reporting by Archie Zhang in
Beijing.
of credit from state-run policy banks
and tax benefits to help them invest —
and a temporary 15 per cent cut in fuel
tax for six months, worth Won2tn.
It is the first time in a decade that
South Korea has implemented such a
fuel tax cut and it is the largest to date,
indicating the government’s despera-
tion to boost consumption in Asia’s
fourth-largest economy.
Spending has been held back by high
household debt, which is about 95 per
cent of gross domestic product in the
first quarter, far above the average 60.8
per cent for the G20 nations, Bank for
International Settlements data found.
The uncertain outlook has also dis-
couraged corporate investment, with
the second-quarter total down 5.7 per
cent from a year earlier, exacerbated by
restructuring in the shipbuilding and
automobile sectors. Seoul plans to pro-
vide Won1.3tn of credit guarantees for
struggling car parts makers and ship-
building-related companies.
Last week the Bank of Korea trimmed
its growth forecast for this year to 2.7 per
cent, from 2.9 per cent, citing weak jobs
growth and global trade friction.
8 ★
Mercury biopic is a Bohemian travesty
FILM
Danny
Leigh
T
he omens were never good.
In pre-production, the still
untitled biopic of Freddie
Mercury lost its star Sacha
Baron-Cohen amid the
fabled problem of “creative differences”.
Then, with the shoot under way, it was
the turn of director Bryan Singer, sacked
for reported absenteeism before the
projectcouldbefinished.Yetevenallow-
ing for this troubled past, Bohemian
Rhapsody is a stunningly bad film, the
kind you almost thought might not be
possible in this safety-first era. As cin-
ema it is slapdash, as storytelling it is
redacted into pointlessness. What were
the focus groups thinking? Bismillah, no!
We open, briefly, at Live Aid in July
1985, our place backstage a promise of
untold secrets that never materialise —
although we will, much later, return.
But our real starting point is a pub car
park. The year now is 1970, emergent
gadfly Freddie Mercury (Rami Malek)
approaching future bandmates Brian
May (Gwilym Lee) and Roger Taylor
(Ben Hardy) to offer his services as
frontman. Creative chemistry is ges-
tured at on-screen, Freddie the vision-
ary, Roger the ladykiller, Brian professo-
rial. May and Taylor, you may note,
would eventually graduate from youth-
ful hairies to producers of this film.
The broad and larky tone suits the
early days of wide-eyed tours and Top of
the Pops. But as the script frantically
scrolls through the band’s Wikipedia
page, the cast rarely have the chance for
more than mimicry. Occasionally,
Malek cuts through to strike a note of
real humanity; more often, his perform-
ance feels like an impression of a man
doing an impression of himself. His col-
leagues, meanwhile, are all wobble.
Much of the dialogue seems designed as
a prank, cruelly placed in the mouths of
uncertain young actors. A fierce debate
over whether the six-minute opus of the
FINANCIAL TIMES
ARTS
Bohemian Rhapsody title should be released as a single finds
Bryan Singer Hardy required to argue: “It’s Bo Rap.
AAEEE Period.” Brando would have struggled.
Keen readers and Queen fans will
The Hate U Give have noted the absence thus far of stolid
George Tillman Jr bassist John Deacon. Rest assured, he
AAAAA duly turns up (played by Joseph Maz-
zello), although his lack of a role as pro-
Utøya — July 22 ducer may explain his portrayal, cred-
Erik Poppe ited with the riff of “Another One Bites
AAAAE the Dust” and the changing of a tyre on a
provincial motorway in the early 1970s,
Possum more usually a running gag. “If you were
Matthew Holness any more dull you’d be Deacy,” Freddie
AAAAE tells May.
Freddie, of course, is the anti-Deacy.
But really, how interested is the film in
the stuff of his flamboyance? His genius
for performance is taken as a given; his
back-story as Farrokh Bulsara from a
family of Zanzibar Parsis ticked off
rather than explored. Instead, the script
dwells on his youthful marriage to Mary
Austin (Lucy Boynton), apparently to
better detail his confusion about his sex-
uality. But the dominant tone is prud-
ishness — a fleeting gimp mask aside,
few tales of sex, drugs and rock’n’roll
have so earned their 12A certificate.
It is hard not to think about another
film while you’re watching The Hate U
Give from director George Tillman —
specifically, the typical Hollywood
movie that might have been made from
similar elements. In that other movie,
snug and feel-good, the audience will
know just what to expect as two young
siblings are summoned to the kitchen
by their father for what he calls “the
talk”. There will be flustered explana-
tions of the birds and the bees; pained
winces from the kids; a warm glow of
comic familiarity.
This is not that talk. This is not that
film. Here, the children are growing up
black in America, and “the talk” con-
cerns what they should do when they
see their father — as they inevitably will
— pulled over and harassed by the
police. The scene looms over the story
that follows, adapted from the hugely
popular YA novel by Angie Thomas.
We pick up the thread in 2018, with
the younger of the kids now 16. Her
RSC’s Macbeth toils to make an impact
T H E AT R E
Macbeth
Barbican, London
aaaee
Ian Shuttleworth
Back in the spring, Britain’s two flagship
theatre companies each unveiled a
revival of Macbeth at more or less the
same time. Both featured big-name
actors in the leads, both featured sizea-
ble cuts to what was already one of
Shakespeare’s shorter texts and bowled
along at a canter and, rather embarrass-
ingly, the principal subject of debate
among theatregoers seemed to be
which of the two was the less impres-
sive. By consensus, that invidious laurel
generally went to Rufus Norris’s
National Theatre production. Now its
rival, Polly Findlay’s version for the
Royal Shakespeare Company (which I
didn’t see in Stratford), arrives at the
Barbican to kick off the RSC’s autumn
London season.
Findlay has tweaked some aspects of
her staging. The little girls who play the
three witches are no longer clad in pol-
ka-dot onesies but scarlet party dresses,
which accentuates the Shining vibe they
give off; however, the sinister appear-
ance goes no deeper because their
young age means they simply can’t
deliver their lines feelingly, but must
recite them singsong.
I assume the Barbican stage is more
consonant than Stratford with Fly
Davis’s spare, unspecific but vaguely
institutional design (characters periodi-
cally visit a water cooler upstage). A
glassed-off upper gallery, though,
means that problems of vocal clarity
name is Starr (Amandla Stenberg),
home still the mostly working-class
black neighbourhood of (the fictional)
Garden Heights but now attending a pri-
vate school on a scholarship. Every day
is a trial of code switching, moving
between personas — one Starr for Gar-
den Heights, another for her wealthy
and overwhelmingly white classmates.
Then comes a sequence that starts in the
style of generic teen drama — with a sto-
len kiss with a first love, Khalil (Algee
Smith), despite a boyfriend back in
school. It ends a few moments later with
the boy shot dead by a police officer,
holding a hairbrush taken for a gun.
And so the faultlines of Starr’s life
cleave open in the bedlam of modern
America, amid the litany of unarmed
black men killed by the police. As an eye
witness to the shooting, the code switch-
ing now becomes nightmarishly height-
ened — endangered in Garden Heights
reported at Stratford have also been
brought to London. Above all — literally
above all — a large red LED display
counts down the time from Duncan’s
murder to Macbeth’s own death, then
makes a fairly blatant point by resetting
and starting all over again.
The name of Macbeth’s attendant
Seyton is often pronounced “Satan”, and
Michael Hodgson makes a plausible
case here for being an infernal manipu-
lator. He begins as an unruffled porter
answering the knocking at the gate,
progresses to become the mysterious
third murderer in Banquo’s assassina-
tion, and periodically runs a carpet
sweeper over the stage as if keeping
Macbeth’s path to perdition clear.
In the title role, Christopher Eccleston
is grim, gruff, brisk and all those adjec-
tives that seem to believe stretching to a
second syllable is a bit milquetoast.
There is one bisyllabic term for his per-
formance, however: bloodless. It’s not a
matter of actual onstage gore; rather
Thursday 25 October 2018
From left, Gwilym Lee, Rami
Malek and Joseph Mazzello in
‘Bohemian Rhapsody’
when the case comes to involve a local
drug dealer, Starr also has to fear the
judgment of her schoolmates, white
kids who get to lay claim to black culture
but are certain the police are “just doing
their jobs”.
The result is a story not just of rage
but narrative sophistication. If the clos-
est cousin to Tillman’s film is The Hunger
Games, where another teenage girl took
on a murderous system, there the rot
was nudged into the future. The Hate U
Give is about right now, and feels a per-
fect fit for it.
The sounds of gunfire are a constant in
Utøya — July 22. Filmed in a single take
and in real time, director Erik Poppe
recounts the 2011 massacre of 69 people,
mostly teenagers, during a Norwegian
Labour Party youth camp by the far-
right terrorist Anders Behring Breivik.
Unlike in the recent film 22 July by Paul
Greengrass, Breivik and his politics are
left off camera — instead, Poppe focuses
on one young woman, Kaja (Andrea
Berntzen), marooned on the island of
Utøya as the killing begins. Her first aim
is simply to survive — then to help who-
ever else she can. The effect is as scald-
ing as you would expect — a stark and
heartbroken monument on screen.
The British director Matthew Holness
made his first splash starring alongside
Richard Ayoade in the endearingly silly
horror TV satire Darkplace. Fans of that
series may find themselves clinging to
its memory like a comfort blanket dur-
ing Possum, in which Holness makes his
debut behind the camera in expertly
clammy style. Even the credits are
unnerving, a queasy overture for a film
built around the performance of Sean
Harris as a grey-faced puppeteer
returned home to a cheerless Norfolk.
The setting is the timeless limbo
between town and country, waste-
grounds and suburbs, the kind of
shabby house with the overgrown front
garden that almost all British children
will have at some point had to walk by
on their way to school, quickening and
looking firmly at the ground.
With Harris wandering the film with a
bulging holdall and the local news
reporting a teenage boy gone missing,
the atmosphere is thick as glue. The
script is less convincing, a jumble of
back-and-forth — but the English creep-
show Holness conjures up will, I’m
afraid, still haunt you the next morning.
From left,
Russell Hornsby,
Regina Hall,
Amandla
Stenberg and
Common in ‘The
Hate U Give’
Eccleston sets the tone for a production
which at times feels more like a Cliff
Notes skim through the play than an
attempt to penetrate to any depth, to
inhabit or engage.
Niamh Cusack’s Lady Macbeth has
been admired, yet my impression was
that she begins by laying the ground-
work for a decent grapple with the role
but then never quite gets the chance as
matters progress. And it saddens me to
say that Edward Bennett’s performance
as Macduff, cardiganned and clip-
boarded, is the first from him that has
struck me as undistinguished; his dia-
logue with Malcolm (Luke Newberry)
about the latter’s alleged vices is down-
right dull, his devastated reaction to
news of his family’s slaughter so under-
played as to be barely noticeable.
The production’s two and a quarter
hours are thoroughly adequate, and yes,
that is damning with faint praise.
To January 18, barbican.org.uk
Gruff:
Christopher
Eccleston as
Macbeth
The Other Richard
Thursday 25 October 2018
Tired of a stagnant economy and corruption scandals, many Brazilian voters want to punish the
political establishment. But some fear Jair Bolsonaro could seek to undermine democratic institutions.
F
or Brazilian businesswoman
Shirley Santos, there is no
option but to vote for the far-
right politician Jair Bolsonaro
this Sunday in the second
round of one of the most contentious
elections in recent history for Latin
America’s largest country.
With her luxury goods import com-
pany reeling from years of recession,
she cannot stomach the idea of the left-
ist Workers’ party, or PT, of Mr Bol-
sonaro’s rival Fernando Haddad, win-
ning a fifth consecutive term.
“I don’t think Bolsonaro is a candidate
who is qualified, I don’t think he’s going
to change the country like some fanatics
say, but there is no way we can continue
with the PT,” she says.
Ms Santos is typical of the millions of
voters who seem poised to elect Mr Bol-
sonaro to the presidency on Sunday. If
he wins, the former army captain,
whose rhetoric invites comparisons
with US president Donald Trump and
Philippine leader Rodrigo Duterte, will
be taking over a country polarised
between left and right and one that des-
perately needs economic reform to
avoid slipping back into crisis.
The seven-time congressman is
known as an apologist for the 1964-85
military dictatorship, for endorsing tor-
ture and for making disparaging
remarks about homosexuals, women
and black people.
But the majority of voters do not
appear to care about these threats. They
want to use him as a wrecking ball to
demolish what they see as a hopelessly
corrupt and incompetent political
establishment, starting with the PT.
Many view his less savoury remarks as a
refreshing change from the fussy politi-
cal correctness associated with the left.
“He has become a point of conver-
gence for innumerable and diverse
points of dissatisfaction with a political
system that is rotten to the core,” says
Daniel Aarão Reis, a professor of con-
temporary history at Universidade Fed-
eral Fluminense in Niterói.
Whatever the reasons for his likely
victory, observers are divided over
whether a Bolsonaro presidency will
threaten one of Brazil’s most hard-won
achievements — its democracy. In style
at least, Mr Bolsonaro echoes many of
the traits of the populists who have pros-
pered in recent years, from Turkey and
Russia to the Philippines.
He has made a career out of shocking
interviewers with provocative remarks.
He told one that the former dictator-
ship’s main mistake was not killing
more people, and has said that he would
shut down Congress the same day if he
was elected president. Just last Sunday,
he told a rally that the PT, “these red
marginals [thugs]”, will be “banned
from our homeland” and promised that
Mr Haddad would be thrown in jail.
Francis Fukuyama, the political scien-
tist from Stanford University, has
described him as a threat to democracy.
Yet such fears are not universally
held, with some observers believing the
threat is exaggerated. Brazil has inde-
pendent federal police, public prosecu-
tors and judiciary that can withstand a
Bolsonaro presidency, says Chris Gar-
man of political consultancy Eurasia
Group. “Brazil has relatively robust
institutions,” he adds.
Political veteran
Born in the interior of São Paulo in 1955
to a modest family, the young Jair Bol-
sonaro joined the army before entering
politics in the late 1980s, changing par-
ties nearly 10 times.
In 2014, the mainstream parties
became embroiled in Brazil’s biggest
bribery investigation, Lava Jato, or
Operation Car Wash, which examined
the links between the political establish-
ment and big business. As other politi-
cians fell victim to the scandal, Mr Bol-
sonaro aggressively used social media to
fill the political vacuum, courting voters
with a mix of social conservatism — he
was rebaptised in the Jordan river — and
economic liberalism.
Today his supporters range from
extreme rightwing activists hoping for a
rerun of the military dictatorship and
businesspeople seeking liberal eco-
nomic policies to evangelical Christians
backing “traditional family values” and
others wanting a crackdown on crime.
“Jair Bolsonaro is not against women,
Jair Bolsonaro is against anarchy, the
★ FINANCIAL TIMES
FT BIG READ. LATIN AMERICA
By Joseph Leahy and Andres Schipani
Can Brazil’s
democracy
survive
Bolsonaro?
Above, a vigil for confusion that these feminists are caus-
Jair Bolsonaro ing in our Brazil,” says Cleuzenir Bar-
after he was bosa, a female candidate who ran
stabbed during unsuccessfully for Mr Bolsonaro’s Social
the campaign. Liberal party for a seat in the Minas
Left above, Gerais state legislature.
Fernando The PT’s founder, former president
Haddad, the PT Luiz Inácio Lula da Silva, in jail since
candidate, who April for corruption, still led Mr Bol-
trails in the sonaro in the polls when the election
polls. Below began in August. But he was replaced by
right, policing in the less charismatic Mr Haddad — a law-
the Rocinha yer, economist and professor. Around
favela in Rio de the same time, Mr Bolsonaro was
Janeiro — Getty Images stabbed while campaigning. The attack
brought him near-blanket primetime
television coverage. Voters were sympa-
thetic. Mr Bolsonaro registered a con-
vincing victory in the first round with 46
per cent of the vote from his hospital
bed compared with 29 per cent for Mr
Haddad. He has since conducted his sec-
ond-round campaign largely from
home, refusing to participate in televi-
sion debates. “How am I going to debate
with someone who’s . . . a puppet, a
dummy,” Mr Bolsonaro says dismiss-
ively of Mr Haddad.
Markets have high hopes for the new
president. Unlike the PT, which is
blamed for destroying the economy
under Lula da Silva’s successor, Dilma
Rousseff, Mr Bolsonaro is seeking to
form an economic team of technocrats
under his adviser, University of Chica-
go-trained financier Paulo Guedes.
If he can get the reforms right, Brazil
could be poised for another virtuous
‘He has cycle, says UBS economist Tony Volpon.
The recession that started in 2014 and
become a wiped more than 7 percentage points off
point of Brazil’s economy ended in 2016, but the
convergence rebound has been modest. The country
grew 1 per cent in 2017 and a survey con-
for diverse ducted by the central bank forecasts
points of growth of 1.3 per cent this year.
dissatisfaction “There is a good cyclical story in Bra-
zil because we haven’t had a recovery
with a year,” says Mr Volpon, adding that glo-
political bal factors such as the US-China trade
system rotten war had raised concerns, but that funds
were still allocating more money to Bra-
to the core’ zil. Since September, the real has
Brazil’s public finances are under
intense pressure
Budget deficit (% of GDP)
0 “Bolsonaro will not want to spend all
2 on day one. People have to be prepared
4 for that and not be disappointed,” says
6 For others, however, such concerns
8 they see as Mr Bolsonaro’s authoritarian
10
12
2009 10 11 12 13 14 15 16 17 18
Source: Refinitiv (Formerly Thomson Reuters Datastream)
strengthened about 11 per cent against
the dollar. “People are finally thinking
that maybe next year is the year we get
that growth.”
Mr Guedes has been pushing for an
ambitious privatisation programme of
147 major state-owned enterprises to
pay down 20 per cent of Brazil’s growing
public debt. However Mr Bolsonaro, in
the past a fierce critic of privatisations,
has warned some areas are off limits,
such as electricity generation and Petro-
bras’ upstream operations. Mr Guedes
wants to simplify Brazil’s fiendishly
complicated tax system into a single
universal tax of 20 per cent and to
reduce the primary budget deficit — the
gap not including interest payments —
to zero by 2020, a challenging target.
Pension priority
The king of the reforms, however, is an
overhaul of Brazil’s expensive and often
unjust pension system, which allows
many workers to retire in their early 50s
and benefits well-paid public servants.
Mr Bolsonaro has said he supports some
type of pension reform but has dis-
carded the version already prepared by
current president Michel Temer.
These reforms will also be difficult to
implement. With 30 parties in Congress,
Mr Bolsonaro will have to win the two-
thirds majority needed to pass an
amendment to the constitution such as
a pension reform. But some kind of
change will be needed relatively quickly,
economists argue, or Mr Bolsonaro’s
honeymoon with the markets could
prove shortlived.
“If we don’t have an important group
of reforms that treat the major prob-
lems of the country — the imbalance of
the public accounts, the closed econ-
omy, the low productivity — we will run
the risk of the crisis coming back with
great velocity,” says Marcos Lisboa,
president of the Insper business school
in São Paulo.
Some warn that Mr Bolsonaro might
want to use his political capital to
deliver first on his social agenda, rather
than prioritising economic reform. To
satisfy his harder line supporters, he
might seek to liberalise gun ownership,
ease rules for police in armed confronta-
tions with criminals and lower the age of
criminal responsibility for youths.
of his political capital on pension reform
UBS’s Mr Volpon.
are insignificant compared with what
instincts. His proposals to loosen con-
trols on law enforcement officers, for
instance, are alarming activists in a
country that has among the highest
numbers of killings by the police in the
world. The overwhelming proportion of
the victims are younger darker skinned
or black men, who in 2015 and 2016
comprised three out of four of those
killed by police.
“We are already living in Brazil a gen-
ocide of the black population,” says
Adilson Moreira, a Harvard-educated
constitutional and human rights profes-
sor of law in São Paulo.
Critics believe the ugly rhetoric of the
campaign is linked to an increase in
politically motivated attacks. Mr Bol-
sonaro was the most visible victim when
he was stabbed by a man claiming God
ordered him to do it. While in Bahia,
Romualdo Rosário da Costa, a master of
capoeira, a traditional martial art, was
murdered in an argument over politics.
Others wonder what would happen if
Mr Bolsonaro came under pressure
from Congress or the Supreme Court.
His son, Eduardo, who is also a congress-
man, caused alarm this week when a
video showed him dismissing any
attempt by the Supreme Court to block
his father’s candidacy. “If you want to
close the STF [Supreme Court], do you
know what you do? Don’t send a jeep.
Send a soldier and a corporal,” he said.
Former president Fernando Henrique
Cardoso said the comments on the
Supreme Court “smell of fascism”.
Mr Bolsonaro immediately moved to
counter his son’s comments, amid wide-
spread outrage. “Whoever thinks this
way needs to consult a psychiatrist,” Mr
Bolsonaro said. He sent a letter to the
Supreme Court to apologise.
The role of the military in Mr Bol-
sonaro’s campaign has also unnerved
some. He is set to appoint several gener-
als to ministries and his running mate,
General Antônio Hamilton Mourão, is
also retired from the army.
But while the military is taking more
of an interest in politics than previously,
most analysts see it playing a “support-
ing” role to provide management exper-
tise to a Bolsonaro presidency rather
than intervening more directly in poli-
tics. The model would be that of Mr
Trump, who has used generals in his
administration.
“I suspect the military itself will be the
first to push back on attempts to use
them in ways that go beyond their con-
9
stitutional authority because it ulti-
63,880 mately threatens them legally and insti-
Record number of tutionally,” says Evan Ellis, professor of
homicides in Brazil
in 2017
Latin American studies at the US Army
War College.
1.3% Weak position
Forecast rate of Some analysts also doubt that Brazil
growth of GDP for could develop a form of “soft authoritar-
2018 ianism”, such as in Turkey. Mr Garman
at Eurasia says that the leaders who
30 adopt this approach are normally very
Number of political popular when elected and receive a
parties in the next boost from a strong economy. They are
Congress then able to use that political capital to
overcome institutional hurdles to their
power. Mr Bolsonaro is expected to
come to power with a weak economy
and high rejection rates from half the
electorate.
“Some people consider our democ-
racy to be a kind of banana republic but
in fact we are not,” says Fernando
Schüler, political scientist at Insper.
“Our institutions are very strong.”
Another barrier to a more authoritar-
ian Bolsonaro presidency is that polls
show the majority of Brazilians still sup-
port democracy. In October, the
number who preferred democracy to a
dictatorship sprung to a record high of
69 per cent — the highest since the end
of the dictatorship, according to pollster
Datafolha. Mr Bolsonaro seemed to
have perceived this and promised politi-
cal reform, including surprisingly a pro-
posal to end re-election.
Among moderate voters, talk of an
end of democracy is not taken seriously.
“I don’t think he is going to get the
constitution and tear it up, I don’t think
‘Some people he is crazy and nor would he have the
consider our support for that,” says Ms Santos, the
Bolsonaro voter. But reflecting on the
democracy to high crime rates, in the same breath, she
be a kind of gives a hint as to why ordinary Brazil-
ians are looking for a change.
banana “I don’t even know if we are living in a
republic democracy because we can theoretically
but we are do so much but in fact we can’t do any-
thing,” she says. “We have liberty but we
not. Our can’t walk out on the street. So, I
institutions think . . . things can’t get any worse
are very than this.”
strong’
Collapsed centre Jair Bolsonaro has
filled a vacuum left by a discredited
political establishment
Radical reform Mr Bolsonaro has
promised economic changes but has in
the past criticised privatisations
On manoeuvres Critics are alarmed at
Mr Bolsonaro’s tendency to surround
himself with military figures
10
THURSDAY 25 OCTOBER 2018
The ECB should think
again on ending stimulus
A central bank earns credibility by being flexible in the face of change
As of a few months ago, the European
Central Bank seemed on a glide path
back to a more comfortable situation
for monetary policy. It had announced
that, with the economy growing well, it
would begin to phase out its quantita-
tive easing programme by the end of
the year. This, it signalled, would pave
the way for gradual interest rate
increases by late 2019.
Thus would the ECB follow the path
of its American counterpart, the US
Federal Reserve, slowly emerging from
the extraordinary monetary stimulus
of the decade after the global financial
crisis. Events, though, have turned out
not exactly as the ECB expected. There
have been signs of weakening in euro-
zone growth. There are some large —
and probably growing — risks in the
near future. One of the single cur-
rency’s biggest economies is showing
signs of fragility that will make it highly
vulnerable to a downturn.
And whatever expansion the real
side of the economy including the
labour market has shown, inflation
remains resolutely below the ECB’s tar-
get. When the bank announces its lat-
est monetary policy decision on Thurs-
day, there are good grounds for it to
reconsider current plans to start wind-
ing down QE at the end of the year.
The case for a postponement is not
absolutely watertight. The labour mar-
ket continues to tighten, and there are
some signs of lower unemployment
feeding through into higher wages, one
of the missing elements of the recovery.
But the actual and potential develop-
ments, particularly from shocks out-
side the ECB’s control, have risen.
Weak exports, which will potentially
worsen if China’s slowdown turns out to
be prolonged, have hit manufacturers’
order books. There remains a risk that
US protectionism against the EU, or the
knock-on effects of a US trade war with
China, will further damage the external
Saving the WTO from
Washington and Beijing
Economic superpower rivalry bodes ill for efforts to revise trade rules
Ministers gathering this week in
Ottawa face a challenge that elevates
the adjective “daunting” to previously
unexplored heights. They will attempt
to restore a battered 70-year-old insti-
tution to its former role to help defuse
an increasingly bitter struggle for eco-
nomic supremacy by two of the world’s
greatest trading powers. To attempt
this mammoth task they will be armed
with little more than persuasive diplo-
macy and the power of good ideas.
The meeting was called by the Cana-
dian government and includes repre-
sentatives from a dozen economies
including the EU and Japan. Attendees
will try to reform the World Trade
Organization enough to placate Donald
Trump, who regards it as a rogue agent
hostile to US interests, without alienat-
ing China, which senses that it is being
ganged up on by rich countries.
In practice it may be impossible to
bridge this gap, particularly since Mr
Trump sees China as a broad-spectrum
foe across political and strategic as well
as economic fronts. In that case, there
is little that the other countries can do
for the moment except try to keep the
multilateral flame alive.
Apart from its clumsy negotiating
structure, which requires unanimity
among member governments for any-
thing to happen and gives sadly few
powers to the institution’s secretariat,
there are some widely accepted faults
in the WTO.
Its rule book has not been updated
since the completion of the last suc-
cessful round of multilateral trade
talks in 1994. It works tolerably well for
traditional economic sectors in market
economies where the boundaries
between market and state are fairly
clear. But for a country such as China,
where such lines are consistently
blurred, it is difficult to use WTO disci-
plines on subsidies and other trade-dis-
torting interventions.
sector. High oil prices from geopolitical
risk are a further drag to growth. On
top of that, the prospect of a hard
Brexit, which would cause some dislo-
cation in the eurozone, appears to have
risen in the past couple of months.
Perhaps, most pertinently, damage
from inside the eurozone also has the
potential to hurt sentiment and
weaken domestic demand. The
renewed travails of Italy, embroiled in a
row with the European Commission
over its budget, are a reminder that the
resolution for the time being of the
eurozone sovereign debt crisis has not
removed the problem of economic
divergence between the economies of
the single currency.
It is not the ECB’s job to set monetary
policy to save Italy, more than any
other country. But, given that core
inflation in the eurozone remains well
below the ECB’s 2 per cent target, it is
reasonable to think that the central
bank can go further to promote broad-
based growth and reduce imbalances.
At the moment, Italy’s budget posi-
tion is not disastrous. But slowing
growth, including weaker demand
from elsewhere in the eurozone, could
make it so before too long. That would
plunge the single currency back into
the debt crisis it has so laboriously
hauled itself out of.
The ECB could argue that, given it
has already said it would start to wind
down QE, it will look unreliable if it
changes its mind now. This has some
merit. But the lesson of the past decade
is a central bank’s credibility comes
from its ability rapidly to alter course
in response to changing information,
not sticking stubbornly to a plan.
Enough evidence has accumulated of
threats to eurozone growth and stabil-
ity that the ECB should give serious
consideration to postponing the with-
drawal of the stimulus that has served
Europe so well.
There are signs that China would
accept some tighter rules. But the price
of that will not just be some innova-
tions that Beijing itself wants, such as
an agreement making it easier to invest
abroad, but also the US agreeing to a
ceasefire by lifting its unilateral tariffs.
That is unlikely to happen, at least
under Mr Trump, unless the US accepts
that China is fundamentally disman-
tling its interventionist machinery.
Washington’s other main demand,
for reform of the WTO’s dispute settle-
ment process, sees the US largely iso-
lated. Even though it was instrumental
in setting up the system, the US dislikes
what it sees as judicial over-reach, par-
ticularly in rulings of the organisation’s
appellate body against America’s use of
antidumping and antisubsidy duties.
Its refusal to appoint any new judges is
bringing the system to a halt.
This is also a tricky issue to solve.
Short of simply appointing judges who
will ignore existing jurisprudence, it is
hard to imagine what will placate the
US. The other members of the WTO
can try to keep the system going by
constituting a new dispute settlement
body to which they voluntarily subject
themselves. But without the world’s
largest economy and the former
anchor of the world trading system, it is
an unsatisfactory solution.
As long as Mr Trump regards world
trade as a zero-sum game, Chinese
interests as intrinsically opposed to
American ones, and all global institu-
tions as objects of suspicion, reforming
the WTO enough to get him to re-en-
gage will be extremely difficult. Gov-
ernments meeting this week in Ottawa
may find themselves designing a model
that can only be used when a future,
more internationally minded, admin-
istration is in the White House. So be it.
Some diplomatic initiatives are pain-
fully slow to show results, but no less
worthwhile for that.
★ FINANCIAL TIMES
Letters
Soft power has little to do with who is president
You claim that the Trump presidency
has lessened American soft power
(“The squandering of American soft
power”, editorial, October 23). This
confuses the popularity and reputation
of a political leader with that of the
country. Yes, President Barack Obama
was well liked around the world, but
that had more to do with him than with
the country. Was there less
anti-American sentiment during his
presidency? Certainly
anti-Americanism did not disappear,
because as a big, bumptious,
economically and militarily powerful
country, the US can be annoying to
many people.
American soft power has little to do
with who is president. The spread of
the #MeToo movement even to India
A great tradition of
American governance
has arrived in the US
I read with interest Gideon Rachman’s
astute analysis of how history may
come to judge Donald Trump (“Trump
embodies the spirit of our age”,
October 23). But I felt one fascinating
aspect was missing.
By appealing to latent nationalism,
stirring those that felt unrepresented
against perceived elites, by seeking to
unite opinion by developing common,
foreign enemies, and by pursuing an
agenda driven by convenience at the
time rather than any set policy
principles, Mr Trump has finally
brought a great tradition of American
governance to the US. He is the first
caudillo president. A dealmaker in
whose judgment his people have
ultimate faith, rather than an advocate
of any ideological platform. You get
The Donald, not democracy.
From Peron and Pinochet to Ortega
and Morales, charismatic strongmen
have been a feature of regimes
throughout the rest of the continent,
with differing results. Only now is the
US catching up.
Christopher Croft
Otford, Kent, UK
Fusion has the power to
avert climate change chaos More to productivity than
Martin Wolf, in “The shameful inaction
over climate change” (October 24), simple apprenticeships
calls for a different investment and
growth path to address climate change,
echoing Shinzo Abe’s recent op-ed “Join
Japan and act now to save our planet”
(September 24).
There is a source of abundant energy
that can dramatically decarbonise the
global economy on the timescale that
the Intergovernmental Panel on
Climate Change calls for. Fusion power,
long the promised future of clean
energy, is now an engineering problem,
not a scientific curiosity.
Technologies including high
temperature superconductors and
artificial intelligence-based control
make fusion possible now. Private
capital is being invested around the
world in several quite different and
highly credible approaches to deliver
industrial fusion power as soon as
2025. It is clear one or two of these
approaches will win the dash to fusion,
thus transforming the supply of cheap
clean energy to fuel global economic
growth.
Iranians will not
risk peace in
order to make a
political point
Tehran
Notebook
by Najmeh Bozorgmehr
illustrates this, as does the global
spread of a very American interest in
ideas of race and equality. Beyoncé is
world renowned, but more
importantly, American music styles
continue to influence music globally.
Despite the decline of Hollywood, the
names or faces of American actors are
often globally recognised. The UK has a
similar soft power.
The sheer number of good American
universities, with students and
scientists from around the world,
results in soft power influence on what
is being researched or invented. The
same for American businesses. Who
would be looking at their iPhone to
check their emails but for American
soft power? This is said not to gloat, but
simply to make the point that the US
‘He’s washed his hands of Britain and
dried them with one of his products
made in Singapore’
Just 8.4 per cent of the world’s energy
was from renewable sources in 2017 —
there is a long way to go before we have
a decarbonised circular economy.
Fusion is one of the few renewable
technologies with the potential to fill
this gap soon enough to avert climate
chaos. It is time to stop yawning and
wake up to the source of sun light.
Dr Chris Martin
Chairman,
Tokamak Energy,
Milton Park, Oxon, UK
In explaining German productivity, the
focus is often on apprenticeships, as if
it were the skills and knowledge of an
apprentice that make the difference
(“Germans show how to tackle the
puzzle of productivity”, October 23).
But what counts is the ability to solve
technical problems rapidly and with
robust solutions.
Germany’s productivity
improvement is based on having a high
quality “buffer” of skills around key
business processes, with the ability and
authority to make changes to improve
those self-same processes. At
individual level, the application and
deployment of technical skills are more
effective in Germany; also, the flow of
talented school leavers into technical
roles is greater than in the UK. The
UK’s focus on higher education and
university access does not necessarily
build a strong, sustainable economy.
Dr Michael Cross
Director, Rezatec,
Harwell, Oxon, UK
History is repeating itself for Iran’s
pro-democracy forces. Whenever they
are positioned to make meaningful
changes, the US corners them and
they lose ground to hardliners.
It is still thrilling for me to
remember the aspirations of young
voters campaigning for President
Hassan Rouhani, who won a landslide
victory in May last year. They had
hoped that the re-election of a centrist
politician would send a message to
Donald Trump that Iranians
supported the 2015 nuclear accord
and favoured detente with the US.
Right or wrong, the majority of those
voters chose not to give up on the goal
of reforming the current system and
to ignore the frightening alternatives.
But the US president withdrew from
the nuclear accord last May, striking a
big blow to Mr Rouhani, who found
himself stuck with fresh economic and
political challenges as a result of
renewed US sanctions. The value of
Iran’s currency, the rial, has fallen
sharply this year and the US is set to
reimpose oil and banking sanctions on
November 4, which will cut the
nation’s economic lifeline.
November 4 will be the 39th
anniversary of the day when Iranian
revolutionaries took 52 US diplomats
hostage in Tehran, partly to protest at
US interference in the country.
Alongside that, today both reformists
and many ordinary Iranians see the
imposition of oil sanctions against
Iran as a modern version of the 1953
military coup, when the US helped
royalists overthrow the
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
president is not the source of American
soft power.
What’s funny is that this global
fascination with Donald Trump and the
current political battles in the US is a
clear demonstration of American soft
power. Why are people in other
countries so interested? Yes, President
Trump’s decisions have repercussions
for world economies, but so do those of
President Xi Jinping of China, yet few
are as obsessively interested in Chinese
politics as they are in American
politics.
It is American soft power that has
made its culture, citizens, and
political/social issues so familiar and
therefore of such interest.
Deborah Lewis
Washington, DC, US
Think more creatively
about funding science
The Francis Crick Institute has warned
that half its staff would leave the UK
after Brexit (“Hard Brexit threatens to
cripple UK research, scientists warn”,
FT.com, October 22). Coinciding with
this, 29 European Nobel Prize-winners
sent a letter to Theresa May, the UK
prime minister, and to Jean-Claude
Juncker, the European Commission
president, urging the EU research
industry to continue collaborating
closely with the UK after Brexit.
However, the priority for any
research project is to achieve its
scientific objectives. To remain
competitive, it is vital that the UK
develops new funding and employment
models, so we don’t limit scientific
research potential.
The concerns of the European Nobel
laureates and the Crick Institute
demonstrate the need for creative
approaches to funding. But we
shouldn’t treat EU funding as the pot of
gold at the end of the Brexit rainbow.
We should develop new economic
models to remain competitive, such as
using commercial or UK funding or
hiring freelance scientists. Freelance
scientists work across borders and
provide low-cost access to specialist
skills.
Ongoing research is critical in solving
the environmental, medical and
engineering challenges of the future. I
urge the scientific community in the
UK to take a leading stance by thinking
creatively about funding.
Ashmita Das
Co-Founder and CEO,
Kolabtree,
London EC1, UK
Gridlock will reflect the
mood in national politics
I enjoyed Wolfgang Münchau’s
commentary on German politics and
its implications for Europe in general
(“Germany’s disappearing centre”,
October 22). Yet I do not believe that
the fracturing of the mandate at the
European Parliament is necessarily bad
for Europe.
It seems to me, looking from afar,
that building coalitions across party
lines and the necessary compromises
that come with it will allow the
parliament to be more reflective of the
mood of Europe’s citizens rather than
that of a secluded elite.
Indranil Chakraborty
Mumbai, India
democratically elected government of
Mohammad Mossadegh and stop the
nationalisation of Iran’s oil industry.
Hardliners find the US’s newly
hostile approach a godsend. Many
people have lost hope in reforms and a
prosperous future. Some threaten
never to vote again. If this mood
persists, hardliners can count on a low
turnout to help them win the next
parliamentary and presidential polls
in 2020 and 2021, respectively.
Conspiracy theorists say this is the
outcome that hawks in Washington
and rival regional countries favour.
In the years under Mohammad
Khatami, a former reformist president
who ruled from 1997-2005, western
diplomats in Tehran saw his desperate
attempts to secure a nuclear deal as
part of a fake power struggle: Iranian
politicians were all parts of the same
theocratic system, they told me.
Back then, while Europe watched
passively, the US called Iran part of
the “axis of evil”. Reformists lost the
presidential election to Mahmoud
Ahmadi-Nejad, and hardliners
boasted of big nuclear and regional
achievements.
But this time, European nations
realise the dire consequences of the
US approach to a rare security deal in
the volatile Middle East. Now,
European states are respectful of
Iran’s commitment to the nuclear
accord while remaining critical of its
regional and defence policies. Perhaps
the US did not foresee this approach.
It may be too early to tell how
Europe’s resistance is going to affect
Thursday 25 October 2018
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
S Africa’s labour market is
in need of urgent reform
One has to welcome President Cyril
Ramaphosa’s emphasis on the urgent
need for South Africa to generate
economic growth that will allow all of
its citizens to reap the benefits of
prosperity (“South Africa must
translate political freedom into
prosperity”, October 24). However, it is
regrettable that in proposing economic
reforms, Mr Ramaphosa fails to so
much as mention the desperate need
for South Africa to reform its rigid
labour market.
Highly centralised wage bargaining,
coupled with minimum wage
requirements and unwieldy labour
market regulations, has reduced the
attraction of the country as a place to
do business, especially in a highly
competitive global economy. It has also
given rise to a serious insider-outsider
problem as is reflected in an
unemployment rate that still remains
in excess of 25 per cent and in a labour
participation rate below 55 per cent.
Reforming South Africa’s labour
market will not be easy for Mr
Ramaphosa’s ANC government,
especially considering that it is highly
dependent on the powerful Congress of
South African Trade Unions for
political support. However, if Mr
Ramaphosa fails to rise to the challenge
of fundamental labour market reform,
the country should reconcile itself to
many more years of lacklustre
economic growth.
Desmond Lachman
American Enterprise Institute,
Washington, DC, US
Today’s biggest challenge
for company chiefs
Uber chief executive Dara
Khosrowshahi’s focus on improving
workplace culture is a welcome way
forward for an organisation whose
reputation has suffered following
various lurid allegations (“Uber chief
admits culture needs further
improvement”, October 24).
However, for any organisation
changing culture is far from easy or
quick, and requires not just
commitment and direction from the
top but also ability and understanding
on the part of managers to identify and
call out issues. Procedures and
processes also need to be established
for victims of harassment, bullying and
prejudice in any form, allowing them to
report and share their experiences
without fear.
This ability to gather evidence of bad
behaviour in the workplace is a
prerequisite before action can be taken
to identify problems and shortcomings,
after which a plan can be agreed and
cascaded to all employees.
This is a major leadership challenge
for all organisations in the 21st century.
It’s good to see Uber finally taking
action to address its problems before
increasingly ethical customers vote
with their feet and desert what has
been a revolutionary service in many
cities around the world.
Ranjit Dhindsa
Head of Employment,
Fieldfisher,
London EC4, UK
OPINION ON FT.COM
David Gardner
The Khashoggi case is just the latest move by
the Saudi crown prince that has backfired
www.ft.com/opinion
Iran’s domestic affairs. But thanks to
Europe’s approach, I’ve noticed signs
of relative calm. Mr Rouhani sounds
more confident that his government
may not bow to US pressure.
Iran’s president accuses Washington
of seeking to bring about a regime
change through “economic war” and
“media war”. But there is a feeling in
Tehran that the Americans may have
relied too much on fomenting public
dissent as a way to encourage change.
It is true that people regularly stage
street protests and chant anti-regime
slogans. Big demonstrations can
happen — as they did in December,
when people called for the arrival of a
secular “Iranian republic”.
But both Iran’s political leaders and
its people are going through a
complicated transition period to open
up the country and rid it of some of its
ideological and historical baggage.
Saeed Laylaz, a reformist and
expert on political economy, says that
while the country’s officials may be
ready to step down, “it is the people
who are determined not to let the
system collapse”. Indeed, many
Iranians fear US policies could turn
their country into another Syria
instead of helping them weather the
storm safely.
Perhaps America’s current leaders
should re-read Iran’s history and this
time learn a different lesson. Iranians
love peace and will not readily risk
their security, even though they may
feel disillusioned now.
najmeh.bozorgmehr@ft.com
Thursday 25 October 2018
Allies must master the art of dealing with Trump
A MER ICA
Janan
Ganesh
A Mateos y Lago
lifetime on and in front of
the television, that hurried
medium, trained Donald
Trump in the art of the
compressed jibe. Next to
“low energy” and “little Marco”, how-
ever, “lyin’ Ted” was a dud. It took sup-
plemental strikes on Ted Cruz’s wife and
father to sting the Texas senator, who
called Mr Trump a “snivelling coward”
in 2016.
On Monday, Mr Trump campaigned
for Mr Cruz in Houston. There have
been similar reconciliations with sena-
tors Rand Paul, who once called the
president an “orange-faced windbag”,
and Lindsey Graham, who, with Becket-
tian economy, went with “jackass”.
At this point, the done thing is to
regret the moral capitulation of these
Car ownership
may peak but
traffic will rise
BUSINESS
John
Gapper
W
hen Daimler last week
issued its second profit
warning this year, it was
evidence of the cyclical
troubles that German
carmakers face, beset by the diesel
clampdown in their own country and
lower sales in China. It was also a sign of
a longer-term malaise.
The moment of “peak car” — people
switching from driving to travelling by
train, bus and bicycle, has occurred in
many developed economy cities. The
average distance that each person
drives per year peaked in the 2000s or
earlier in cities including London,
Stockholm and Atlanta. It has even
fallen in Beijing, thanks to the clamp-
down on car ownership.
This happened before the revolution
in transport enabled by the smartphone
and Uber, which now offers on its app
everything from taxis to shared jour-
neys and ebikes in some US cities. Given
that two-thirds of the world’s popula-
tion may live in cities within 20 years,
the trend is not the friend of companies
reliant on individual sales.
But while car ownership may be peak-
ing — the Rocky Mountain Institute
The power of example will galvanise change for women
AFRICA
David
Pilling
A
biy Ahmed, Ethiopia’s
prime minister, has devel-
oped a habit of making
political gestures that
reverberate around the
continent. In rapid succession, he has
released thousands of political prison-
ers, concluded peace with Eritrea and
promised fully democratic elections in
one of Africa’s mostly tightly controlled
states.
This month, he did something that
could have the biggest continental
impact of all: he appointed women to
half the positions in his cabinet.
Ethiopia joins Rwanda in having as
many women in its cabinet as men. Cyn-
ics might see this as a public relations
ploy to win over gullible foreign donors
and paper over an authoritarian record.
There may be some truth there. But that
one-time resisters. Less examined is the
other side of the rapprochement. How
easily Mr Trump comes to an under-
standing. For enemies, the price of re-
admittance to his fold is the odd dose of
flattery and votes for things they would
have voted for anyway. Because he looks
and talks like an immovable man, we
miss evidence to the contrary.
The lesson here is not for Washing-
ton’s careerists. It is for allied nations.
After they steadied gingerly from the
savage shock of his election, countries
were left with a practical question: how
to manage this strange phase in rela-
tions with the US? How, at a stretch, to
gain from it? Some, such as Germany,
went into unofficial opposition. Others
(Britain more than most) tried too hard
to please him.
Neither has it right. Mr Trump can be
worked with, or at least neutralised.
And it can be done without total self-
abasement. The president is not a driver
of particularly hard bargains. He can
live with symbolic gestures of conces-
sion: what some have called “tweetable
wins”.
A minor renegotiation was enough to
forecasts that annual personal US light-
vehicle sales could fall from 17m today
to 7m by 2035 — car travel is far from
dead. In fact, technology is making the
automobile ever more accessible.
Here is a small example. On Monday, I
went to hear Dara Khosrowshahi, Uber
chief executive, talking at a Financial
Times event. With a $100bn initial pub-
lic offering planned for next year, he set
out a vision of Uber being a mobility
provider of everything from scooters to
flying cars. “The great goal is getting rid
of car ownership,” he said.
When the event was over, I used an
app to order a shared taxi from ViaVan,
jointly owned by Mercedes-Benz Vans.
The driver turned up within three min-
utes and took me from the City of Lon-
don to my home in east London in 20
minutes at a cost of £3. It was more than
the Tube fare, but very cheap for a per-
sonal journey direct to my door.
I was thus driven by car (a Toyota
Prius with one other passenger) when I
would otherwise have taken a train.
Apart from our car, two Zipcars reside
on my street, and my iPhone offers mul-
tiple services, including taxis from Uber
and Addison Lee, DriveNow electric
BMWs, and peer-to-peer booking of
neighbours’ vehicles.
Most people do not drive the cars they
own very much and they are parked a
lot of the time — high levels of owner-
ship are consistent with low intensity of
use. Young adults are less likely than
their parents at the same age to have a
car, or even to hold a licence, but the
is to underestimate the power of exam-
ple in galvanising real change.
In Ethiopia, Aisha Mohammed
becomes the first woman to head the
defence ministry, while Muferiat Kamil
is in charge of the security apparatus
(renamed the Ministry of Peace). In
Rwanda, where inheritance laws have
been amended to give women equal
property rights, two exceptional figures,
Clare Akamanzi and Louise Mushiki-
wabo, have senior cabinet positions.
Regrettably, the two countries remain
exceptions. When Ellen Johnson Sirleaf
stepped down as president of Liberia
this year, she left no other woman
among the 55 leaders on the continent.
The examples of Rwanda and Ethio-
pia, though, are putting pressure on oth-
ers to raise their game. Atiku Abubakar,
a presidential contender in Nigeria’s
forthcoming election, has pledged,
according to a report in the Nigerian
press, to “yield 40 per cent of his cabinet
position to women and youths”. The
word “yield” — the reporter’s, though
not necessarily the candidate’s — is
revealing. It implies a residual reluc-
tance to let go of the power that “right-
fully” belongs to men.
★ FINANCIAL TIMES
Opinion
settle his decades-old grievance with
Nafta. It also softened his more recent
feud with Canada. Last year, he
described Nato as “no longer obsolete”
after assurances from Jens Stoltenberg,
the secretary-general, about its work
against terrorism. He was further
defanged in his hostility to the alliance
by a round of European military spend-
ing that mostly predates his presidency.
This US president is not a
driver of hard bargains; he
can live with what some
have called ‘tweetable wins’
As recently as April, he seemed (for a
while) open to re-joining the Trans-
Pacific Partnership on revised terms.
There is Trumpism as analysis: the US
as gull, bearing burdens as liberty-tak-
ing foreigners giggle behind their hands.
And there is Trumpism as action: small
tweaks to the status quo, usually entail-
ing a cosmetic financial sop to Washing-
ton. Perhaps he never believed the anal-
peak car phenomenon is mainly a result
of car owners driving less.
The upshot is that falling ownership
could well be accompanied by rising
traffic because shared mobility services
are more efficient and encourage higher
use. City streets will in future have fewer
cars parked on them but more objects in
motion.
They will include a lot of autonomous
taxis, providing shared journeys as an
alternative, or an adjunct, to public
transport. Addison Lee announced this
week that it plans to offer self-driving
vehicles in London from 2021 in part-
nership with the technology group
Oxbotica. The first services could be
minibus shuttles for commuters.
The potential transfer from mass
City streets will in future
have fewer vehicles
parked on them but
more objects in motion
Instead, Africa needs to embrace the
idea. That goes as much for the elector-
ate as for politicians. Many of the conti-
nent’s greatest injustices — whether sex-
ual violence, exclusion from education
and healthcare, lack of jobs — dispro-
portionately affect women. Though
there have been improvements, girls are
still more likely to be out of school and
malnourished.
This month, stories in Liberia and
Before colonialism, many
societies were matriarchal,
giving the continent
a long tradition to draw on
South Africa underlined the vulnerabil-
ity of women to sexual violence as well
as their strength to fight back. In Libe-
ria, women — and men — took to the
streets in protest after revelations that
girls attending a school run by the US
charity More Than Me had been repeat-
edly raped by the organisation’s co-
founder.
In South Africa, in the first rape trial
ysis in the first place. Perhaps he does
not understand the smallness of the
changes.
More plausible than either Mr
Trump-as-fake or Mr Trump-as-fool is
Mr Trump-as-politician. With re-elec-
tion two years away, he wants diplo-
matic successes to parade. To that end,
he plays up whatever he negotiates,
intuiting that his voters crave the right-
eous momentum of America First as
much as its precise detail.
Saudi Arabia supplies the most topi-
cal example of his susceptibility to eco-
nomic gestures. Washington has rea-
sons to preserve its alliance with the
kingdom even after the killing of dissi-
dent Jamal Khashoggi. But Mr Trump,
who could mention Saudi counter-
terror intelligence or usefulness against
Iran, zeroes in on bilateral arms sales.
Even if he is right to rate them at $110bn
over time, they amount to a rounding
error in the near-$20tn US economy. In
other words, a veneer of munificence —
“memorandums of intent” to buy US kit
— has saved the Saudis from what might
have been a breakdown of relations
under another president.
public transport to shared private trans-
port has worrying implications. One
study by the International Transport
Forum found that a combination of
good public transport and shared self-
driving vehicles might remove nine out
of 10 cars from the streets of a medium-
sized European city, but vehicle use
would still rise slightly.
The worst case it modelled was of a
city in which public transport was inad-
equate and people switched to being
driven around individually in robotic
vehicles, which would raise the kilome-
tres travelled by road by 89 per cent.
Peak car could prove to be a false dawn
for 21st century transport.
Cities can guide how their roads are
used — the limiting of vehicle licences
by Chinese cities and reserved carpool
lanes on US highways are examples. Tax
and licence policies for autonomous
vehicles should incentivise not only
electric engines but shared use. The
future of cities does not have to be seen
through a smog, darkly.
The boundary between public and
to be broadcast live, the extraordinary
Cheryl Zondi waived her anonymity to
give testimony about allegedly being
raped from the age of 14 by an evangeli-
cal priest. While her court appearance
has garnered huge support and shone a
spotlight on the dark corners of South
Africa’s rape crisis, it also served to dem-
onstrate why women are reluctant to
come forward. Ms Zondi was aggres-
sively cross-examined, called a liar and
asked to provide humiliating and
unnecessary details of her ordeal.
Fortunately, Africa has a long tradi-
tion of strong women to draw on. Before
conquest and colonialism, which
brought with it the patriarchal religions
of Islam and Christianity, many African
societies were matriarchal. The Ashanti
in what is modern-day Ghana trace
ancestry down the female line and often
pass property from mother to daughter.
Many African liberation heroes were
women, though all too often they have
been torn from history. In Zimbabwe,
Nehanda Charwe (1840-1898), a Shona
spiritual leader, inspired revolt against
the British South Africa Company,
which was colonising Mashonaland and
Matabeleland. Before her execution at
The point is not to gloat at Mr Trump’s
quickness to accommodate. (Would we
rather that he was as stubborn as his
image?) The point is to flag its useful-
ness to allies. He will lead the foremost
power on Earth for two, perhaps six
more years. Countries must find a
modus vivendi with him. His pattern of
behaviour implies that he is negotiable
on much, and at affordable cost.
Although diplomats often resent mer-
cantile foreign policy as a vulgarisation
of their rarefied craft. But it has the
blessing of clarity. There is no mistaking
what a nation with such a policy wants.
What Mr Trump seems to want is a
sense of restitution for monies diddled
out of American coffers through such
black magic as trade and collective secu-
rity. Not always the substance: the
sense. Knowing this, canny allies have
somewhat stabilised relations with him
through less-than-ruinous concessions,
and let him have his day on Twitter. He
means it when he calls himself a deal-
maker. The mistake is to assume that he
is a tough one.
janan.ganesh@ft.com
private transport is also likely to blur.
The environmental ideal is public tran-
sit, but trains and buses supplemented
by shared self-driving shuttles would be
better than everyone climbing into their
own chariots. Technology increasingly
allows efficient real-time pooling of
vehicle use, from double decker buses to
vans and cars.
None of this suggests that vehicles on
roads are going away and cities are
returning to an era of walking and
cycling. Nor does it offer much comfort
for Daimler and other carmakers whose
purpose and expertise has been making
cars that people want to own. Mobility
will come in the form of an iPhone,
rather than a vehicle.
Carmakers can find a way through a
cyclical downturn and the transition to
electric vehicles but, in terms of per-
sonal ownership, peak car has arrived in
many places. Companies that serve that
market alone will eventually run out of
road. The car itself, not so much.
john.gapper@ft.com
the hands of the British, she is said to
have warned that “these bones will rise
again”. In Kenya, though women played
a prominent role in resisting colonial
role, few if any streets in Nairobi are
named after a female liberation hero.
Contemporary Africa is not short of
inspirational women. Thuli Madonsela,
South Africa’s former public protector,
arguably did more than anyone to bring
Jacob Zuma, the former president, to
account. Many of Africa’s finest novel-
ists, including Nigeria’s Chimamanda
Ngozi Adichie, are women. More impor-
tant still, all over the continent, it is
women who are holding things together,
performing more of the back-breaking
toil and playing a more constructive role
in bringing up families.
Countless studies show that society at
large — that means men as well as
women — reaps the reward from having
educated, empowered women. It is a
positive sign that Nigeria’s presidential
hopeful feels the need to cede more
power to women. But the sooner African
women demand that power is their right
the better.
david.pilling@ft.com
11
Greek debt crisis
echoes resound
in Italy’s face-off
with Brussels
Isabelle
T
he European Commission
has rejected Italy’s draft
budget. Valdis Dom-
brovskis, the commission’s
vice-president responsible
for the euro, said this week that Rome’s
arguments for increasing its fiscal defi-
cit were “not convincing”.
The Italians had been warned. But the
Five Star/League coalition government
nevertheless decided to pursue a fiscal
expansion instead of the adjustment
prescribed by European rules. The
budget aims for a fiscal deficit of 2.4 per
cent — not enormous in itself, but it is
three times as large as the previous gov-
ernment’s commitment and unlikely to
deliver a sustainable boost to growth.
The bond market’s reaction suggests
concern, but not outright alarm. This
may not last.
The episode brings back memories of
the confrontation that took place in
2015 between the freshly elected Greek
government and European officials.
And the latter’s response in the Italian
case suggests they plan to adopt a simi-
lar approach this time around: stare
down the populists and wait for market
pressure to become intolerable.
Of course, Italy is not Greece. With its
fiscal and current account deficits,
Greece in 2015 was clearly living beyond
its means. Italy, by contrast, runs a cur-
rent account and primary fiscal surplus.
So market pressure could take longer to
boil over.
Moreover, popular support for euro-
zone membership is lower than in
Greece, and Italy is a net contributor to
the EU budget. So any threat to leave the
A rescue package for
Rome that only half
solves the problem would
leave too high a burden
euro is more credible than in Greece’s
case.
Italy is a bigger economy, with gross
domestic product nearly 10 times as
large as Greece’s. Many have argued that
makes it harder to save. That is not nec-
essarily correct in a world where out-
right monetary transactions (purchases
of eurozone sovereign bonds) are on the
books of the European Central Bank.
But it increases the risks of not saving
Italy and requires a higher bar for it to
receive support from its eurozone part-
ners, should it come to that, because a
rescue package that only half solves the
problem would leave too high a burden
to carry forward.
At the same time, the others may be
less reluctant to contemplate debt
restructuring, since the bulk of sover-
eign debt is owed to Italian residents
rather than eurozone governments.
There are two respects, however, that
make this stand-off similar to 2015.
First, the so-called bank-sovereign
doom loop, in which the fates of both
countries and banking systems are inex-
tricably linked, has not disappeared.
Second, the eurozone remains vulnera-
ble to contagion.
A protracted stand-off could expose
the eurozone’s inability to stem a bank
run, and bring an early end to its recov-
ery, with little room for either monetary
or fiscal policy to react. So while the
eurozone might wish for Italy to be
placed under greater market pressure,
it may come to regret it if and when it
comes.
Some European policymakers see
recent developments in Italy as a big
step backwards for risk reduction, and
favour a freeze on further risk sharing.
Arguably, though, the opposite reaction
is called for.
Italy is too big and strong to be pushed
around. So Italians will decide their own
fate. The others should redouble efforts
to survive this potential wrecking ball.
This means adopting European Stability
Mechanism instruments that would
allow near instant access to OMT to
well-run countries suffering from con-
tagion, and provide some form of collec-
tive insurance against bank runs for
institutions that meet agreed criteria.
Only when it is protected from conta-
gion and able to offer an appealing
counter-narrative will the eurozone be
able to overcome this latest populist
challenge credibly. Until then, dark
clouds over Italy will cast a pall over the
prospects for Europe as a whole.
The writer is chief multi-asset strategist at
BlackRock and a former IMF official
12 ★ FINANCIAL TIMES Thursday 25 October 2018

Taiwan/Offshore wind: speed freak

Renewables groups should look to Taiwan for the next boom as the island state looks to catch up with its
larger neighbour. Mainland China has been a world leader in renewables in recent years and is near to
completing many of the goals it set out in its most recent five-year plan.

Twitter: @FTLex China’s renewable targets Renewable capacity additions

Barclays/Deutsche Bank:
accountability
Universal banks are not universally
loved. When times are tough,
shareholders have questioned keeping
both retail and institutional units. US
banks such as JPMorgan have proved it
can work. Both Barclays Plc and
Deutsche Bank have yet to do so.
Shares of both have delivered
miserable returns. In yesterday’s
results for both, Barclays at least
offered some hope to its holders. That
is not yet true for Deutsche.
Barclays’ chief executive Jes Staley
has no doubts on the universal
structure: keep the bank together. In
Barclays’ results he could point to
better return on (tangible) equity, over
10 per cent in the quarter and well
above the 7.4 per cent in the same
period last year. Consistent
improvement in the UK, despite a
highly competitive mortgage market, is
impressive. As extraordinary charges
from litigation finally disappear, Mr
Staley could discuss the future of
Barclays as a bank, not basket case.
And at its core, his strategy holds the
Barclays family together. Barclays
Africa had to go last year. But he
defends the investment bank, despite
an ROE almost a third below the group,
as a must have. More important, Mr
Staley talks up hope of offering more
dividends and buybacks. He needs to
do something. Nearly three years into
his job and the Barclays total
shareholder return has dropped nearly
a quarter.
But if Mr Staley is keeping his act
together, Deutsche Bank struggles to
hold everything together. Its issues
have taken decades to develop and
need years to unravel. Barclays has its
home market to buttress group
income. Deutsche instead faces serious
competition from publicly owned
banks, with little profit incentive.
Elsewhere, the investment bank
struggles against international peers,
particularly in the US. Deutsche has
sold part of asset management, the unit
with the best returns on capital. But
recent outflows hint at problems.
And profitability remains low. Group
costs are falling, true, with employee
numbers down. As yet compensation
has not done the same. Group ROE at
1.7 per cent is well below cost of capital.
Deutsche may be a work in progress,
but the 4 per cent target for 2019 lacks
ambition compared with peers.
Christian Sewing, in Deutsche’s hot
seat only since April, will need more
time. Mr Staley, though, has had
enough time. Now he needs to deliver.
Heineken:
emerging taste
If you can’t sell cold beer during an
extraordinarily hot summer that also
includes a World Cup then you might
as well give up. Such high expectations
only partly explain why shares in
Heineken lacked fizz after a third-
quarter update yesterday.
European organic sales rose 2 per
cent but that missed consensus
forecasts by nearly half. Brits, Poles
and Spaniards were not sufficiently
thirsty. Supping in the USA was flat.
No matter, group organic sales rose
4.6 per cent, helped by Asia and South
America. Unfortunately, it is the Dutch
brewer’s exposure to such emerging
markets, which as a broader group
provide about 60 per cent of its profit,
that is now causing investor concern.
Weaker global growth will hit EM
economies hard, softening their
currencies and causing import costs to
rise. The squeeze on household budgets
will cut discretionary spending on beer.
(This is less of an issue in developed
European markets which have a more
entrenched drinking culture). The bulk
of Heineken’s sales in cyclically-
sensitive Asia are premium brands,
meaning it is the higher margin
volumes that will suffer.
A separate concern: group margins
may face additional pressure from
rising input costs. The price of malting
barley remains high after Europe’s
latest heatwave. Hedging of
commodities and currencies can help,
but sometimes they are not feasible.
Sharp movements in the Nigerian naira
and Congolese franc trimmed €116m
off operating profits earlier this year.
All this said, Heineken’s EM
exposure makes sense for the longer
term. For example, its Brazil operation
is expanding well: up double-digits in
the past quarter. Margins there will
improve as market share grows,
economies of scale kick in and the
premium proportion of sales rises
above its current 20 per cent. Kudos
also to management for partnering
Gw
2017 2020 target
Hydro Wind
FT graphic Sources: IEA; IRENA
Taiwan is the new hotspot for activity
in the offshore-wind sector in Asia. A
study by Wood Mackenzie released
this week estimates that offshore-
wind capacity in Asia will grow 20-
fold by 2027 to 43 gigawatts, with
Taiwan becoming the second-largest
market after mainland China.
The biggest winners of this trend
are those developers that are already
present in the country.
Taiwan’s renewables push
resembles that of Germany. The
island nation wants to wean itself off
of nuclear energy after the
Fukushima disaster in Japan.
And in order to reduce smog and
air pollution it aims to reduce
dependency on coal-fired power
plants. As a result it is hoped that
with CR Beer rather than taking China’s
biggest brewer head on. Half a pint is
better than someone else’s dregs.
Kering:
endearing value
For his latest Gucci ad campaign, pop
star Harry Styles cuddles baby pigs and
goats. It is hard to imagine that any of
Gucci’s paying customers would treat
their thousand-dollar threads so
carelessly. In recent years, they have
just kept coming back for more clothes.
How long this trend can continue is
the question that troubles investors.
Shares in parent group Kering have
tumbled more than a fifth since June
on fears of a slowdown in China, the
600
500
400
300
200
100
0 Ellison claimed Oracle was so invested
Solar Bioenergy Geothermal
renewables will increase from 6 per
cent of the energy mix in 2016 to a fifth
by 2025, even as some worry about
energy supply stability because of the
testing timetable.
For developers, Taiwan offers an
attractive market. As opposed to
neighbours such as China, South Korea
and Japan, there is no local supplier for
turbines and wind-farm components.
This means that global groups need
not worry about any potential
preference for domestic rivals. Instead,
the government is willing to pay up to
create local manufacturing capabilities.
Moreover, analysts highlight a stable
regulatory backdrop compared with
other Asian markets.
Danish energy group Oersted,
infrastructure fund CIP and wind-farm
cornerstone of the world market for
luxury bags, goods and shoes. These
fears heightened recently after the
country reported its slowest quarterly
year on year GDP growth figure since
the global financial crisis. Stock market
turbulence and a weaker renminbi —
near its lowest level since the start of
2017 — have all hurt the sector.
But much of this fear is in Kering’s
price already. It is looking cheap. On a
price to forward earnings basis, the
shares trade close to a five-year low.
Any premium baked into the share
price for the recovery in Gucci sales, a
brand invigorated by creative director
Alessandro Michele after January 2015,
has also evaporated.
A look at Kering’s third-quarter sales
update this week suggests that this
panic is unwarranted. Gucci revenues
Gw
120
Asia
100
80
60
Rest of world
40
2013 14 15 16 17
Asian offshore-wind capacity
2017 (Mw)
China 2,641
Japan 65
Korea 46
Taiwan 8
operator wpd are among the earliest
movers. True, a tender earlier this
year resulted in prices less than half
of the government’s guaranteed
“feed-in tariffs” from the preceding
round.
Even so those companies, such as
Oersted and Canada’s Northland
Power, that have won contracts at
both intervals, should earn healthy
profits.
The tariff declines there highlight
the risks that wind developers face.
Those of them that will have set up
local manufacturing supply chains
should ultimately have a cost
advantage over pure importers.
This local support explains why
international wind groups have
rushed to zero in on Taiwan.
jumped more than a third to more than
€2bn, with revenues at parent Kering
up 27 per cent to €3.4bn from the same
quarter a year earlier. That beat that of
sector bellwether LVMH, which posted
third-quarter sales up 10 per cent.
True, China is vital to Gucci — about
35 per cent of Gucci’s revenues comes
from Asia Pacific ex-Japan. Much of
that will be China. Yet Kering has done
well across its brands and in other
major markets. North American
revenues leapt 36 per cent. And it was
not all about Gucci. Other key brands
like Yves St Laurent, Balenciaga and
Alexander McQueen also supported
the growth. Bottega Veneta offers a
single, but small, black spot.
Following the update Kering jumped
5 per cent yesterday. No ugly market
pig, its shares look good value.
Oracle: clouds on the
distant horizon
You can tell a lot about an organisation
from the company it keeps. Oracle
used to position itself as a rival to
software group SAP. Now it wants to be
on the same list as cloud-computing
leader Amazon Web Services.
That makes its earlier decision to
stop reporting the precise performance
of cloud products look peculiar. At its
annual OpenWorld shindig in San
Francisco this week, co-founder Larry
in the business that it was moving to a
more secure “cloud generation two”.
Yet it will not still specify the speed at
which its cloud business is growing.
This new generation gives some
indication of how long Oracle has been
shifting to cloud computing. Until
Oracle unscrambles revenues it will be
difficult to judge the transition. The
newly blended cloud services and
license-support unit makes up almost
three quarters of Oracle’s business by
revenue. It grew 3 per cent in the past
quarter to $6.6bn. But it is impossible
to know how much was driven by cloud
sales instead of legacy products.
Other sections of the business are not
growing at all. But then, moving
customers to the cloud was always
likely to undercut revenue growth. And
yet Oracle can afford to turn round
slowly its supertanker of a business.
The $182bn market cap company still
prints cash. It generated nearly $7bn in
cash flow from operations last quarter
on a 30 per cent operating margin.
But for a group so quick to square up
to its competitors, Oracle’s buybacks
look overly defensive. It recently
promised another $12bn. Last quarter
it spent about $10bn. In part, this is a
way to take advantage of a US tax-law
change. But it is also intended to soften
the blow of disappointing results.
Oracle claims that such let-downs
will soon be in the past. This week it
said applications, another small but
growing segment, could double in size
as the cloud business accelerates. If
Oracle is serious then it should stop
pouring money into buybacks and
invest more in that source of growth.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

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Thursday 25 October 2018 ★ 13

Setting sail France and Italy tie knot on Mohamed El-Erian October’s turbulence
military shipbuilding alliance — PAGE 14 is not all bad news — MARKET INSIGHT, PAGE 26

Weak chipmakers fuel wider fears Market

Forces
3 Semiconductor groups TI and STMicro decline 3 Concerns spread to broader economy
Srivastava, an analyst at BMO Capital warned. TI pointed to weaker orders with the Philadelphia Semiconductor
Michael
RICHARD WATERS — SAN FRANCISCO
KATIE MARTIN — LONDON Markets in San Francisco. He pointed to from customers, showing that “demand ‘We still Index more than doubling from the start Mackenzie
other signs that have fed into the more slowed across most of the end markets face soft of 2016 until a correction in the sum-
Semiconductor stocks took a knock yes- cautious mood of chip groups, including during the quarter”. mer.
terday as weak forecasts from some of this week’s fall at diversified industrial STMicro pointed to weaker demand market The long boom had led to hopes that Market sentiment remains fraught and this may just rep-
the first companies in the sector to group 3M, weaker data from the car sec- from electronics makers in China as it conditions the sector had become less cyclical, resent the opening round of a secular shift for investors.
report earnings fuelled fears about the tor and the US-China trade war. set a cautious sales target. “We still face thanks to greater demand for semi- This year always looked likely to provide a challenge as it
economic outlook. The dent to confidence followed cau- soft market conditions in China and in China conductors in many new digital prod- marked the era of quantitative tightening. The Federal
The drop in chip shares is the latest tious outlooks from both Texas Instru- some inventory corrections,” said Jean- and some ucts, along with better management of Reserve has led the way, trimming its balance sheet by
sign of the volatility that has hit differ- ments and STMicroelectronics. TI, one Marc Chery, chief executive of STMicro. the industry’s traditional cycle. $50bn a month, while the European Central Bank, which
ent parts of the technology sector in of the most diversified chip companies, On Tuesday, shares in Austrian chip- inventory However, falling prices have severely meets today, plans to end bond purchases in December.
recent weeks. But concerns raised in the which is often seen as a bellwether of maker AMS plummeted 32 per cent corrections’ dented memory chip companies, with As the era of quantitative easing ebbs and financial con-
chip sector could carry a stronger warn- broader industrial demand, fell nearly 4 after the Apple supplier’s fourth- Micron dropping more than 40 per cent ditions slowly tighten, market volatility is likely to normal-
ing of a weakening in the broader econ- per cent on Tuesday, while STMicro quarter guidance fell short of expecta- from its high point this year. ise after being suppressed along with bond yields in recent
omy, according to analysts. dropped more than 11 per cent. tions. Taiwanese chip stocks have also That has also dragged down equip- years. This combination is going to seriously challenge
“Semiconductors are as leading an “We are heading into a softer market,” fallen this week. ment makers such as Applied Materials, investors and is an issue that KKR explores in its latest
indicator as you can get,” said Ambrish Rafael Lizardi, chief financial officer, The chip sector had been riding high, which is off 47 per cent. piece of research, Rethinking Asset Allocation.
“The traditional 60/40 portfolio has done exceedingly
well over the past five years,’’ KKR writes, but adds: “Look-
ing at the big picture, our bottom line for chief investment
officers] is that expected returns are now falling at a time
when volatility is increasing. So, on a risk-adjusted basis,
the next five years are likely to look dramatically different
Beering up nicely than the past five years.’’
Heatwave boosts A key factor it identifies as
influencing future perform-
‘The next five
European brewers ance is the “secular shift in years are likely
the relationship between
stocks and bonds”. KKR’s
to look
Unusually warm weather across Europe team believes that the pat- dramatically
this summer helped the world’s second- tern between the two asset
largest brewer, Heineken, and smaller classes since 2000 is an out-
different than the
rival, Carlsberg, sell more beer in the lier. Periods of falling equity past five years’
third quarter, despite persistent prices have usually been off-
concerns about beer consumption set by strong gains for government bonds, helping keep
stagnating in developed markets. portfolios above water.
The boost from the hot summer, as The recent rise in US bond yields, and one accompanied
well as cost cuts, led Carlsberg to lift its by falling equity prices, revealed a shift in the relationship
full-year profit guidance yesterday, a between these two markets. We also saw this occur in Feb-
week before its results. The third-largest ruary, when a jump in US workers’ average earnings
brewer now expects underlying profits pushed up bond yields and equities tumbled. KKR writes:
to rise 10-11 per cent, up from a previous “We believe that many multi-asset class portfolios could
forecast of a high single-digit endure much greater downside capture than in the past”
percentage. But currency impacts are and pins this on a move “away from monetary policy
expected to be worse than predicted, towards more fiscal policy. As a result, bond prices will
lopping off Dkr500m ($76.5m) from probably no longer rally in the event of an equity sell-off.”
operating profit instead of Dkr425m. Aside from the US pumping up sales of Treasury paper
Separately, Heineken confirmed that after a big tax cut, China will continue adding to its debt
its 2018 targets after underlying volume pile, while next week’s UK budget should mark a break
growth rose 4.6 per cent in the quarter, with years of fiscal austerity. Italy’s protracted fight with
with European strength balanced by an the EU over spending will, in all likelihood, result in a big-
Asia and Africa slowdown. Investors are ger budget deficit and ultimately higher yields.
still smarting from a July profit warning Fiscal solutions beckon as the slow retreat of QE has not
in which the brewer said margins would delivered a robust economy. Yesterday, the purchasing
suffer owing to currency weakness and managers’ index for the eurozone fell to 52.7 in October,
the cost of expanding in Brazil. down from 54.1 in September, the lowest figure for 25
Heineken’s volumes in Europe rose months. There is justifiable concern that global QE has not
2.2 per cent in the quarter compared achieved escape velocity for the global economy. It also
with a 0.7 per cent rise in the first half of entails a far tougher time for investment portfolios as the
the year. Leila Abboud and Richard Milne era of asset prices being buoyed by easy money ebbs.
Lex page 12
michael.mackenzie@ft.com
Alamy

Deutsche investment bank slides as

Europeans struggle to match US rivals
DAVID CROW — LONDON became head six months ago, comes traditionally allies of high finance.
OLAF STORBECK — FRANKFURT
amid soul-searching among European Finance Minister Olaf Scholz has repeat-
Deutsche Bank lost further ground politicians over the rapid decline of the edly called for a strong, German-based
against its US investment banking region’s investment banks. international lender.
rivals during the third quarter, fuelling Most European banks have radically Jes Staley, chief executive of Barclays,
fears that European companies will scaled back their presence in invest- said his company’s investment bank
struggle to compete without a regional ment banking since the financial crisis, could fill the gap in Europe after the
Investors anxious to hear dealmaking powerhouse. with names such as Royal Bank of Scot- lender reported strong third-quarter
Amazon decision on HQ2 land and UBS having exited the ranks of revenues from its trading desks, which
The bank’s chief executive, Christian “bulge bracket” banks. jumped by a fifth versus last year. Mr
Amazon reports its third quarter Sewing, asked investors for patience as Some politicians believe the continent Staley said: “I think European compa-
earnings today, but what investors are Deutsche reported falling revenue in all needs its own investment banking nies want to have a European leader in
most eager to hear is where it will of its corporate and investment banking champion rather than relying on Wall both the advisory and the underwriting
locate its second headquarters. The divisions. Income from the lender’s all- Street titans such as Goldman Sachs and space, and that’s what we do.”
decision will cap a contest that will important sales and trading desks fell 15 JPMorgan if its businesses are to Shares in Barclays closed 2.9 per cent
bring billions of dollars and tens of per cent compared with last year. compete with the US. higher yesterday while Deutsche Bank
thousands of jobs to the winning city. The declining fortunes of Deutsche The steady decline of Deutsche’s lost a further 4.8 per cent.
Analysis i PAGE 17 Bank, which has lost almost a fifth of its investment bank has raised concerns Lex page 12
stock market value since Mr Sewing among lawmakers in Berlin, who are not Divergent paths page 15

Companies / Sectors / People

Companies
3M.........................................................13,25,26
AMS...........................................................13,26
AT&T.........................................................14,26
Addison Lee................................................11
Afcons..............................................................7
Afren .............................................................18
Agrokor..........................................................16
Air Canada..................................................14
Alexander McQueen..............................12
Alibaba...........................................................17
Alstom..............................................................6
Altera Corporate Finance...................16
Amazon....................................................14,17
Amazon Web Services.........................12
Amni International Petroleum.........18
Anhui Zotye Automobile....................16
Apple............................................................1,14
Applied Materials....................................13
Asos.................................................................14
BAIC.................................................................14
BASF.................................................................6
BMW.................................................................11
BT Group.....................................................26
BYD..................................................................14
Baker Tilly...................................................16
Balenciaga....................................................12
Barclays........................................12,13,15,26
Barrick Gold...............................................25
Berkshire Hathaway..............................17
Big Issue.........................................................3
Blackstone...................................................16
Boeing......................................................17,26
Boliden..........................................................26
Bottega Veneta.........................................12
British Airways..........................................14
CIP....................................................................12
CR Beer.........................................................12
CRRC.................................................................6
Carlsberg......................................................13
Caterpillar..............................................25,26
Cathay Pacific............................................14
Cavendish Corporate Finance.........18
Chery...............................................................16
CityFibre.......................................................26
Daimler......................................................11,14
Danske Bank..............................................15
Delta Air Lines..........................................14
Deutsche Bank...............................12,13,15
DriveNow.......................................................11
EasyJet..........................................................18
Eskom...............................................................4
Experian..........................................................3
Facebook.........................................................1
Famous Brands.........................................18
Fast Retailing.............................................14
Ferguson......................................................26
Fifa...................................................................16
Fincantieri....................................................14
FinnCap.........................................................18
FireEye...........................................................14
Flipkart...........................................................17
Ford.................................................................16
Fresnillo..................................................25,26
Gap...................................................................14
Geely...............................................................14
Generali.........................................................14
Goldman Sachs....................................13,15
Google............................................................17
Gourmet Burger Kitchen....................18
Gucci................................................................12
H&M................................................................14
HBO.................................................................14
HSBC...............................................................18
Handelsbanken.........................................15
Heineken..................................................12,13
Inditex............................................................14
JPMorgan................................................12,13
Jamie’s Italian............................................18
KKR.............................................................13,16
Kering.......................................................12,26
Knighthead..................................................16
Konzum..........................................................16
LEVC...............................................................14
LVMH.......................................................12,26
Lloyds.............................................................18
Lotus...............................................................14
Mandiant......................................................14
Mercedes-Ben.............................................11
Metro Bank...........................................18,26
Micron.............................................................13
Moncler.........................................................26
Morgan Stanley........................................15
Mytaxi............................................................14
Naval Group .............................................14
Netflix.............................................................14
Nordea............................................................15
Northland Power.....................................12
Northrop Grumman................................17
Ntiti..................................................................18
Oersted..........................................................12
Oracle..............................................................12
Oriental Energy Resources...............18
Oxbotica.........................................................11
Patisserie Valerie..................................1,18
Paytm..............................................................17
Prezzo............................................................18
Privinvest.....................................................14
Proton............................................................14
Quilter............................................................18
RBS...................................................................18
Randgold Resources.............................25
Return on Development.....................14
Royal Bank of Scotland.......................13
Ryanair...........................................................18
SAP...................................................................12
STMicroelectronics...........................13,26
STX..................................................................14
Safran.............................................................26
Sanofi................................................................3
Sberbank......................................................16
Sherborne ...................................................15
Siemens...........................................................6
SoftBank..................................................16,17
Steers..............................................................18
Stobart Group...........................................18
T-Mobile........................................................14
TSB..................................................................18
Texas Instruments............................13,26
Time Warner..............................................14
Toyota.............................................................11
UBS..................................................................13
Uber............................................................10,11
UniCredit......................................................14
United Parcel Service...........................26
VTB..................................................................16
Verizon...........................................................14
Volvo...............................................................14
Wpd..................................................................12
WhatsApp.....................................................17
Wimpy’s.........................................................18
Yves St Laurent........................................12
Sectors
Aerospace & Defence................14,17,26
Airlines......................................................14,17
Automobiles......................................11,14,16
Banks........................................12,13,15,18,26
Basic Resources.......................................16
Construction..............................................26
Energy............................................................12
Financials.......................................11,16,17,18
Food & Beverage..........................12,13,16
Healthcare.....................................................3
Industrials........................................14,25,26
Media...........................................................1,14
Mining......................................................25,26
Oil & Gas......................................................18
Personal & Household Goods.........12
Pharmaceuticals.........................................3
Retail.....................................................12,14,17
Retail & Consumer.............................3,26
Technology.........................1,10,12,13,17,26
Telecoms................................................14,26
Transport.....................................10,11,18,26
Travel & Leisure.........................1,14,16,18
People
Abouhossein, Kian..................................15
Afolabi, Tunde...........................................18
Allen, Jerry..................................................14
Bezos, Jeff....................................................17
Bono, Giuseppe........................................14
Brady, Warwick.........................................18
Bramson, Edward....................................15
Buffett, Warren..........................................17
Chen, Anning.............................................16
Chery, Jean-Marc.....................................13
Cook, Tim........................................................1
Coombs, Andrew......................................15
Egan, Erin.......................................................1
Ellison, Larry...............................................12
Entenmann, Klaus...................................14
Fry, Hugo........................................................3
Guillou, Hervé............................................14
Hackett, Jim................................................16
Hogg, Rupert.............................................14
Infantino, Gianni.......................................16
Johnson, Luke.........................................1,18
Khosrowshahi, Dara..........................10,11
Koskull, Casper von...............................15
Lizardi, Rafael............................................13
Luo, Jason....................................................16
Marsh, Chris.............................................1,18
May. Paul...................................................1,18
Michele, Alessandro...............................12
Morzaria, Tushar......................................15
Moulton, Jon..............................................18
Safa, Iskandar............................................14
Serra, Davide..............................................15
Sewing, Christian...........................12,13,15
Shahenshah, Osman..............................18
Sharma, Vijay Shekhar.........................17
Smith, Sam..................................................18
Staley, Jes..........................................12,13,15
Tinkler, Andrew........................................18
Todoric, Ivica..............................................16
Ullah, Shahid..............................................18
Zetsche, Dieter.........................................14

© The Financial Times Limited 2018 Week 43

14 ★ FINANCIAL TIMES Thursday 25 October 2018

COMPANIES
INSIDE BUSINESS
Airlines
EUROPE

Cathay Pacific reveals large data breach Michael

Cyber attack affecting 9m
passengers only made
public after seven months
BEN BLAND — HONG KONG
JOSH SPERO — LONDON
Cathay Pacific, Hong Kong’s flag carrier,
has suffered a large data leak after
someone gained “unauthorised access”
to the data of up to 9.4m passengers,
diately to contain the event, commence
a thorough investigation with the assist-
ance of a leading cyber security firm and
to further strengthen our IT security
measures.”
Cathay Pacific said it engaged consult-
ants from Mandiant, part of FireEye, to
conduct a forensic investigation into the
breach.
The airline said it first detected “sus-
picious activity” on its IT systems in
March and confirmed the “unauthor-
tion, said it was “not reasonable at all”
for Cathay Pacific to have known about
the hack for seven months and not noti-
fied customers: “If we give our data and
credit card details in good faith to make
a booking, if there’s a hint that data has
been compromised, we deserve to
know.”
In the EU, companies that detect a
data breach must notify their national
authority within 72 hours or face aggra-
vated regulatory consequences.
Stothard
Access was number, identity card number, frequent
flyer programme membership number
gained to
information
and historical travel information.
It added that no passwords and only a
small number of credit cards were com-
Attractive model
including
passport
promised, all without the CVV code that
makes fraudulent use easier. The airline
keeps Inditex at the
numbers,
declined to say who was behind the
attack or what their motivation was.
Mr Allen said that a passport number
forefront of fashion
contact on its own was not of great use to hack-
details and ers, but in combination with other data

including passport numbers, contact
details and travel histories.
Cyber security experts were quick to
ask why the airline, which detected the
hack in March, had taken seven months
to make it public.
“We are very sorry for any concern
this data security event may cause our
passengers,” said Rupert Hogg, the air-
line’s chief executive. “We acted imme-
ised access” to certain personal infor-
mation in early May. It added that it had
“no evidence that any personal infor-
mation has been misused” and was in
the process of contacting affected cus-
tomers, having already informed the
Hong Kong police.
Jerry Allen, managing director of
Return on Development, a crisis man-
agement consultancy focusing on avia-
Aerospace & defence. Consolidation
When asked why Cathay took so long
to notify people, the airline said: “We
believe it is important to have accurate
information to share, so that people
know the facts and we can support them
accordingly.”
Cathay said the combination of data
accessed varied by passenger but
included passenger name, nationality,
date of birth, contact details, passport
T
travel — such as a person’s name or the coun-
try which issued it — could help hackers
histories steal someone’s identity.
Lukasz Olejnik, independent cyber
security and privacy researcher and
adviser, said it was unclear how Cathay
knew that information had not been
misused. “Most likely this means that
the company is — until today — unaware
of misuse,” he said.
here has been an aura of gloom hanging over
Inditex, the Spanish company behind the Zara
fashion brand, for the past year. The sell-off in
emerging market currencies has hit profits.
There has been constant worrying about
weaker margins. The shares are down 21 per cent over 12
months and the company was even forced to resort to the
“warm weather” excuse in its last full-year results.
But amid these short-term concerns, most notably
about valuation as the share price has tripled since 2006, it
is worth taking a step back to look at the fundamentals and
what Inditex has become over the past few decades.
The company has its origins in a single Zara store started
in the 1970s by Rosalia Mera, a former seamstress, and her
husband, Amancio Ortega, the son of a railway worker, in a
small town in the north of Spain called A Coruña.

French and Italians close in on shipbuilding pact
Naval looks to join forces with
Fincantieri despite souring ties
between the two countries
DAVID KEOHANE — PARIS
RACHEL SANDERSON — MILAN
France and Italy have taken another
step forward in their fledgling military
shipbuilding alliance, a rare if limited
sign of progress in European defence
consolidation and a sign of co-operation
between the two clashing governments.
Late on Tuesday, France’s state-
owned Naval Group and Italy’s Fincan-
tieri started to put some flesh on the
bones of their attempt at co-operation.
“It is necessary to consolidate now.
Governments are aware . . . that not
doing this has huge costs,” said Iskandar
Safa, chairman of Privinvest, the parent
company of shipbuilding group German
Naval Yards.
The deal, codenamed Poseidon, is
tentative and less ambitious than the
original plan laid out last year — a “fig
leaf”, in the words of some analysts —
but it is more than some industry watch-
ers thought was possible in the face of
political barriers.
Relations between the two countries
have soured since Italy formed an anti-
establishment government in spring. “If
they want to see me as their main oppo-
nent, they’re right,” said French presi-
dent Emmanuel Macron in August after
a meeting of Italy’s Matteo Salvini and
Hungary’s Viktor Orban.
The two groups announced a 50-50
joint venture aiming to make them
more competitive in tenders, primarily
against rivals from the US but also
increasingly from countries such as
China and South Korea. They will also
look for efficiencies in purchasing, test-
ing and research and development.
An underpinning agreement between
the two governments, including over
issues of sovereignty, is in the works but
is expected next year.
Analysts criticised the deal. It was
“very cautious” and its “scope of activi-
ties appears at this stage limited”, said
Hélène Masson, an analyst at the Fonda-
tion pour la Recherche Stratégique.
Originally, a cross-shareholding
structure of between 5 per cent and 10
per cent between the two companies
was mooted in order to demonstrate
commitment to the alliance. It was con-
sidered vital to make the partnership
durable. That idea has been pushed
back, in part due to political headwinds
and in part to concerns from suppliers
in both countries about losing share,
rendering the “deal a no-deal”, accord-
ing to one person close to it.
The cross-shareholding “will be con-
sidered again in the future,” according
to French government officials, while
A Naval Group the chief executive of Naval, Hervé Guil- tary shipbuilding. The logic behind the
employee works lou, simply says of closer union that “we plan mirrors the logic for wider defence
in front of a will see step by step”. consolidation in Europe: the crowded
frigate under Analysts also say that while some sector faces cost pressures and increas-
construction at a joint projects are envisioned, this agree- ing competition in export markets.
yard in Lorient, ment lacks a large common programme But there has been little movement so
Brittany to drive co-operation. far as commercial logic runs up against
Loïc Venance/AFP
But the alliance, which excludes sub- governments, which have conflicting
marines, represents tentative progress. strategic imperatives, are reluctant to
It was conceived last September when share technologies or lose expertise, and
Mr Macron and then Italian prime min- know that shutting industrial sites is a
ister Paolo Gentiloni stood together in sure-fire way to lose votes.
Lyon to celebrate the takeover of a “Successful European joint ventures
French shipyard, STX, by Fincantieri. ultimately pool industrial capacity and
The two leaders also announced the eliminate manufacturing over-
creation of a study group to explore cre- lap . . . The problem is that shipbuilding
ating a “European champion” in mili- is so incredibly sensitive that nobody is
willing to make that commitment,” said
Sash Tusa, at Agency Partners.
Fincantieri The deal between Fincantieri and
Share price (€) Naval, the “only opportunity” for
Europe to create a global participant in
1.6 military shipbuilding, according to
1.4
Giuseppe Bono, Fincantieri’s boss, had
been considered under threat after the
1.2 election of Italy’s anti-establishment
government in March.
1.0 European officials describe Franco-
Italian relations as being at an all-time
0.8 low. “France and Italy are at war,” said
one senior Italian politician.
0.6 “It is not Russia which is against us but
0.4
the French,” Giulio Sapelli, an econom-
Jan 2017 2018 Oct ics adviser to Italy’s vice premier Matteo
Salvini told business leaders last week.
Source: Refinitiv (formerly Thomson Reuters)
The event was attended by Mr Salvini.
Mr Sapelli, who was Mr Salvini’s pro-
fessor at university, went on to express
a nationalistic view increasingly held
in Rome about ownership of
corporate Italy.
Elaborating on his theory of France
being hostile to Italian interests, Mr
Sapelli suggested French chief execu-
tives of Italian financial groups
UniCredit and Generali only intended to
orchestrate a sale of those groups to
French buyers.
However, French officials say there
has always been a political will to push
ahead with this particular project
despite frictions between France and
Italy.
And Italian executives say beneath
the political tensions, technocrats are
seeking to keep transalpine relations on
a relatively even keel.
The deal is a result of those efforts
even if its form makes it nothing more
than “a fig leaf designed to make it look
as if there is progress”, according to Mr
Tusa, which does not go far enough in
merging the two companies.
“You have FREMM, the most success-
ful global frigate programme of the last
decade, and then you go from that say-
ing ‘OK, we won’t do that for the next
time’,” said Mr Tusa.
“If you had merged the programmes,
then merging the two companies
would have been very easy, now it’s
impossible.”
Still based in the same town, Inditex is now the Apple of
the fashion world — the largest apparel retailer on the
planet, a juggernaut of cash generation and an online suc-
cess story at a time when other bricks-and-mortar retail-
ers are struggling.
And the margins are remarkable. The Inditex operating
margin, which is the profit left over after paying for mate-
rials and expenses such as wages and transport, was 17 per
cent last year.
While this is not quite the 27 per cent of Apple, it is dou-
ble that of many of its competitors. Swedish rival H&M
Hennes & Mauritz had operating margins of 10.3 per cent
last year. Japan’s Fast Retailing, which owns Uniqlo, had
operating margins of 7.1 per cent. Asos had 4 per cent. Gap
in the US had 9.3 per cent in the same period.
Thanks to the strong margins and size, Inditex is a cash-
generating machine. The company made €3.37bn in net
income on €25bn of revenue in 2017. This compares with
SKr16.2bn (€1.5bn) made by H&M on revenues of
SKr200bn. Inditex also had nearly €5bn in cash on its bal-
ance sheet at the start of this year.
This success comes at least in part because Inditex —
which has eight brands, including Pull & Bear, Massimo
Dutti, Bershka, Stradivarius, Oysho and Uterque — has
been a pioneer of the “fast fashion” model.
It was one of the first to
abandon the traditional
industry strategy of selling
The blue shoes
pre-planned seasonal lines of worn by singer
clothing made by subcon-
tractors months in advance.
Miley Cyrus are
Instead, Inditex designers in Zara just
work in real time. They scour
fashion shows, magazines,
weeks later
social media and even night-
clubs to see what is fashionable that week.
They continually send fresh designs to manufacturers,
which have the product in shops within the month. As a
result, the blue shoes worn by singer Miley Cyrus at an
award ceremony are in Zara just weeks later.
Essential to making this possible is the policy of having
the bulk of the clothes manufactured locally. This is more
expensive, but means that designs can be in the shops in as
little as 15 days compared with the six-month industry
average. This model has chimed particularly well with the
Instagram-savvy, I-want-it-now millennial generation,
which makes up an increasingly large slice of the con-
sumer base. Revenues at Inditex are up 40 per cent over
the past three years.
At the Zara on Calle Serrano in Madrid two weeks ago, a
gaggle of teenage girls had gathered to admire a black
puffer jacket: “I saw this one in a magazine last week,” one
screamed, loudly.
On top of all this the company, which was seen as a late-
comer to online shopping, has been catching up. It
launched online in Australia and New Zealand in March,
and has said it will offer online sales across all its brands
worldwide by 2020. Online sales jumped 41 per cent in
2017 to reach 10 per cent of group net sales.
A recent note by Jefferies said Inditex was showing a
“demonstrable resilience to the online onslaught” and had
“ongoing growing net cash” at a time when many of its
rivals were struggling.
Anne Critchlow, analyst at Société Générale, said: “Indi-
tex looks future-proofed to us, with the ability to grow
online without damaging its margin.” She added that “the
dividend payout ratio has been edging up and could con-
tinue to do so”.
The outlook is not 100 per cent rosy, however. Competi-
tion is intense from online-only retailers such as Amazon
and Asos. Having production costs geared towards the
euro, but the bulk of sales generated outside the single cur-
rency zone, makes it vulnerable to currency shifts. But
most analysts, behind their short-term concerns, wax lyri-
cal about what Inditex has become and its prospects.
michael.stothard@ft.com

Automobiles Telecoms

Daimler and Geely launch ride-hailing service AT&T profits hit by loss of TV subscribers
PETER CAMPBELL
MOTOR INDUSTRY CORRESPONDENT
Geely and Daimler are to open a joint
business in China offering ride-hailing
services in their first collaboration since
the Chinese group took a significant
stakeintheGermancarmakerthisyear.
The venture will offer premium ride-
hailing using Mercedes cars first,
expanding to include electric Geely
models. It will have its own board with
representatives from both companies.
In February, Geely took a 9.7 per cent
stake in Daimler, with the aim of open-
ing negotiations about sharing technol-
ogies and working together. The invest-
ment caused alarm in the German gov-
ernment because of questions about
Geely’s links with the Chinese state.
While many other Chinese companies
have seen international expansion cur-
tailed, Geely struck a number of deals
including taking stakes in Daimler and
in truckmaker Volvo Group, suggesting
that its investments had received at
least the tacit blessing of Beijing.
The company already owns or con-
trols Volvo Cars, the black-taxi maker
LEVC, British sports car group Lotus
and Malaysian carmaker Proton.
Dieter Zetsche, Daimler’s chief execu-
tive, said that any projects between the
companies must represent “win-win”
situations and must not disrupt the Ger-
man group’s partnerships in China with
carmakers BAIC and BYD.
Opening a ride-hailing service allows
the companies to work together without
encroaching on existing arrangements.
Geely runs CaoCao, a Chinese ride-
hailing service, while Daimler owns a
suite of services from moovel to mytaxi,
which together have 26m customers.
“With Geely Group, we have found an
excellent partner to expand our mobil-
ity services in China,” said Klaus Enten-
mann, chief executive of Daimler Finan-
cial Services, who will sit on the board of
the new business.
See Opinion
ANNA NICOLAOU — NEW YORK
Nearly 300,000 Americans abandoned
their television subscriptions with
AT&T in the third quarter, dragging
down profits for the largest US tele-
coms group amid an industry-wide
transition towards video alternatives
such as Netflix.
Shares in AT&T dropped more than 7
per cent in morning trading, after the
company revealed that it lost 297,000
US pay-television subscribers in the
three months ending in September.
AT&T, like its peers, has seen its
bread-and-butter television and wire-
less phone businesses come under pres-
sure in recent years, as insurgents such
as Netflix and T-Mobile have taken mar-
ket share. While rival Verizon has dou-
bled down on its core businesses, AT&T
has taken the opposite approach, diving
into media content to compete head-on
with Netflix.
The telecoms group completed its
takeover of Time Warner this summer,
transforming the Texas-based phone
company into a Hollywood group that
now controls HBO, the Warner Bros film
studio, and a trove of TV channels.
Adjusted earnings at AT&T’s enter-
tainment group, which includes its
pay-TV and satellite businesses, fell 8.6
per cent to $2.4bn in the quarter, con-
tributing to an overall miss on profits.
AT&T’s net income rose to $4.7bn or 90
cents a share on an adjusted basis, from
$3bn a year ago. Wall Street analysts had
been looking for 94 cents a share.
Time Warner, rebranded to Warner-
Media, was a bright spot: sales rose 6.5
per cent to $8.2bn in the quarter, as the
Warner Bros film studio was boosted by
hits such as Crazy Rich Asians.
The wireless phone business also did
better than forecast: AT&T added
69,000 postpaid, or recurring, phone
subscribers in the quarter, while ana-
lysts had expected it to lose customers.
Overall, AT&T’s sales jumped 15 per
cent to $45.7bn, meeting forecasts.
Thursday 25 October 2018
Deutsche is all downside while Barclays blooms
Fortunes diverge but both are finding themselves dwarfed by US rivals, which are bigger in almost every business line
STEPHEN MORRIS AND DAVID CROW
LONDON
OLAF STORBECK — FRANKFURT
It has been many years since Deutsche
Bank or Barclays considered themselves
world-beaters, yet it is increasingly clear
that Europe’s last two big investment
banks are following sharply divergent
paths after their latest quarterly results.
A resurgent Barclays posted a fourth
consecutive quarter of market share
growth at its investment bank driven by
a 19 per cent rise in trading revenues
yesterday. The results bolstered chief
executive Jes Staley’s position against
activist investor Edward Bramson, who
is agitating for the unit to be shrunk or
sold.
The news from Frankfurt was bleak in
equal measure. All of Deutsche’s invest-
ment banking divisions reported
declines in revenue, with the crucial
trading business down 15 per cent,
pushing the bank to its lowest third-
quarter revenue in eight years. CEO
Christian Sewing pleaded with investors
for patience as he tries to staunch the
decline and regain the trust of clients.
However, the gulf between the two
European investment banks and their
rejuvenated US rivals is still as large as
ever.
Although Barclays clawed back some
market share and stole a march on its
German rival, both European groups
remain dwarfed by their Wall Street
peers after a painful decade of restruc-
turing that has left them smaller and
less profitable in almost every business
line.
“Mr Staley has clearly reinvigorated
the markets business, whereas in Deut-
sche’s case there is no sign of market
share stabilisation,” said Kian Abouhos-
sein, head of European banking
research at JPMorgan. “Barclays has a
real opportunity to gain the ‘crown’ of
being the European counterparty of
choice. However, in a global context it’s
difficult to see it ever catching the top
five US investment banks.”
While Barclays and Deutsche’s trad-
ing units are heading in opposite direc-
tions, both are shadows of their pre-
crisis selves and have lost ground to the
Americans in the lucrative M&A and
financing advisory segments as well.
Barclays’ revenue from fixed-income,
currency and commodity (FICC) trad-
ing is on track to end this year 78 per
cent lower than its peak in 2009, accord-
ing to data from analysts at JPMorgan.
Equity trading is forecast to come in 30
per cent lower over the same nine-year
period, for a combined revenue decline
of £11bn.
At Deutsche, FICC and equity trading
revenue are likely to shrink 41 per cent
and 55 per cent this year from their
respective pinnacles in 2010 and 2007,
the JPMorgan research shows, repre-
senting a total revenue decline of
€6.5bn. Some of the lost ground can be
explained by business exits and restruc-
turing of operating divisions, as well as a
general contraction of the markets, the
analysts said.
By comparison, the top US banks are
down 50 per cent on aggregate in FICC
trading and 14 per cent in equities from
their peak periods, and all are bigger
players by volume, according to data
provided by Citigroup.
Nevertheless, recent momentum
Banks
Nordea hails money-laundering efforts
RICHARD MILNE
NORDIC CORRESPONDENT
Nordea said it was in a “much more
comfortable position” on tackling
money-laundering after regulatory
criticism and allegations against the
Nordic region’s biggest bank.
The lender has received sharp criticism
from Swedish and Danish regulators
over anti-money-laundering controls.
This month Bill Browder, a Kremlin
critic, asked for criminal investigations
to be started in Finland, Sweden, Den-
mark and Norway after alleging that
$409m from a Russian fraud flowed
through Nordea accounts.
Julie Galbo, chief risk officer, said the
bank had invested heavily in compli-
ance and 5 per cent of its workforce
dealt with anti-money laundering.
“The banking community in general
has underestimated the complexities of
fighting financial crime. For us specifi-
cally, and most Nordic banks, we have
been on a maturity journey.”
Nordic prosecutors are considering
Mr Browder’s requests, but he has been
turned down in the past at least once.
Nordea has not commented on the
figures in Mr Browder’s complaints and
so the size and scale of any fraud alleg-
edly flowing through its accounts is at
present unknown.
Change to key metrics at European and US banks
Q3 results (year-on-year change, %)*
-11 to -20 -1 to -10 0 1 to 10
Divisional revenues
Equity
FICC trading
Deutsche Bank
-15 -15
Barclays 10 35
JPMorgan -10 17
Citigroup 9 1
Bank of America -8 1 -18
Goldman Sachs -10 8 10
Morgan Stanley 1 5
*All figures are as reported, ie not managed basis
Sources: Autonomous; company reports; JPMorgan analysts/research
means American investment banking
veteran Mr Staley has his swagger back
after a chastening year. He almost lost
his job for trying to unmask a whistle-
blower and watched Mr Bramson, a
notoriously persistent activist with a
strong City of London following, emerge
at the top of Barclays’ share register.
“There has been a comment that
European investment banks can’t com-
pete with the US, and I would just point
out that four quarters in a row we have
gained market share,” Mr Staley said
yesterday. “The reality of what’s hap-
pening with our markets franchise
really belies the proposition we can’t
compete.”
Equity trading was once again the star
performer for Barclays, where revenue
surged by more than a third, and the
closely watched fixed-income unit also
posted a welcome 9.7 per cent rise in rev-
enue. At Deutsche, the same businesses
each dropped 15 per cent, which manag-
ers blamed on deep cuts made to US
operations and a mix of low rates and
market volatility in Europe.
Deutsche’s record in trying to achieve
top line growth while controlling costs
Nordea is facing several previously
disclosed probes including one in the US
looking at whether it complied with
sanctions between 2008 and 2014, as
well as a Danish police investigation.
Casper von Koskull, Nordea’s chief
executive, said that the various issues
had received “a lot of attention”. When
he took the job he “put risk and compli-
ance as the number one priority, and we
have invested heavily in people, systems
and processes. Of course, this takes
attention and also diverts attention”.
Nordea is facing several probes
including one in the US
★ FINANCIAL TIMES 15
COMPANIES
booked, during the quarter. Not every-
one was so sanguine about Barclays’
performance. Citigroup analysts said
the numbers were flattered by write-
backs on bad loan impairments and
favourable loan-loss model adjustments
under new accounting rules known as
IFRS 9, both of which are unlikely to
continue.
“Management are too optimistic,”
said Citi’s Andrew Coombs. Barclays’
success hinges on its “ability to grow
overall revenue again by £2bn through
2019 following five consecutive years of
decline,” he added. “We view this as
challenging”. Mr Coombs was similarly
sceptical about Deutsche’s ambitions:
“We fear the bank could continue to
cede sales & trading share based on cur-
rent momentum” and regard its targets
as “overly aspirational”.
The German lender’s experience of
haemorrhaging revenue while trying to
selectively shrink parts of its invest-
ment bank is also instructive for the
stand-off between Mr Staley and Mr
Bramson, whose Guernsey-based
Luke MacGregor/Bloomberg
investment vehicle Sherborne owns 5.4
per cent of the British lender.
Revenues fall from pre-crisis and recent highs During meetings with Barclays’ big-
gest investors Mr Bramson has focused
By division (local currency, bn) his critique on the fixed-income busi-
11 to 20 21 to 30 31 to 40 FICC Equity trading Investment banking ness, and specifically rates trading,
Barclays Deutsche Bank which he has singled out as the lowest-
15 15 returning and most capital inefficient
Investment Share price change
banking on results day part of the bank.
2009
“I don’t think his premise is gaining
-1 -5 traction with our shareholders, I don’t
2010
10 10 believe they would embrace another
-14 3 chapter of restructuring,” Mr Staley told
the Financial Times. Rivals’ experiences
-2 -1 show “Barclays needs to stay together as
2007
5 5 a group and the [trading divisions]
-12 2 2009 should not get any smaller . . . you’ll
always lose more revenues than you
2017 2006 gain in cost savings,” he said.
-2
0 0 After rejecting 11 meetings since the
3 bank announced its half-year results in
Peak 2018 Peak 2018 July, Mr Bramson has finally agreed to
14 6 estimate estimate meet Mr Staley. The showdown takes
Note: The historical numbers are not fully comparable to current place in two weeks with the stage now
numbers due to business disposals/exits, restructuring, restatement perfectly set.
of the divisions and movement between trading lines over time
See Lex
in the investment bank has been dismal.
Compared with 2006 — the last year
before the financial crisis started —
overall revenue of its corporate and
investment bank is set to be about a
quarter lower this year, while non-inter-
est costs will be at the same level as 12
years ago.
“Barclays has been more successful
because Mr Staley inherited the old Leh-
man Brothers business at a time when
the US is doing super-well,” said Davide
Serra, founder of hedge fund Algebris,
which owns the British lender’s bonds.
“Deutsche on the other side is sub-
scale everywhere with a very weak US
franchise. And if they can’t make money
at this part in the economic cycle, I don’t
know if they can.”
Barclays’ results were blemished by
revenue from banking — including fees
for M&A advice, selling bonds and issu-
ing equity — which plunged 14 per cent,
comparing unfavourably with a 1 per
cent drop at Deutsche and double-digit
gains at Goldman Sachs and Morgan
Stanley. Barclays blamed its shortfall on
a number of merger deals being
announced, but not completed and
The comments come as Nordea
reported a bigger-than-expected drop
in third-quarter profits. Operating
profit fell by a fifth from a year earlier to
€866m, missing average analyst expec-
tations of €930m.
Mr von Koskull blamed a “volatile”
and seasonally weak third quarter, but
conceded that he was “not happy” with
its fee and commissions business.
Nordic banks were lauded after the
financial crisis for what was seen as a
strong costs focus strong capital ratios,
but investors have favoured other Euro-
pean lenders in the past year or so.
Concerns about money-laundering
have spread from Danske Bank, which is
embroiled through its Estonian branch
in one of the biggest scandals, to other
Nordic lenders with a Baltic presence.
Handelsbanken, which on Tuesday
announced unexpectedly that its chief
executive would resign next year, said
yesterday it would cut 1,600 jobs —
about 13 per cent of its workforce — as
part of its efficiency programme related
to digitalisation.
But the sole Nordic lender not to enter
the Baltics said it might need more peo-
ple in the Netherlands and UK, where it
is increasing its presence. Its operating
profit fell slightly from a year previously
to SKr5.34bn, but just beat analyst fore-
casts.
16
Travel & leisure
Crunch time for Fifa tournaments proposal
Make-or-break vote
due on $25bn plan
led by SoftBank
ARASH MASSOUDI AND
MURAD AHMED
A SoftBank-led proposal to create new
tournaments with Fifa faces a make-or-
break vote tomorrow, with the backers
of the $25bn plan set to walk away
unless international football’s govern-
ing body can secure agreement among
its divided membership.
The vote marks a crucial moment
for Gianni Infantino, Fifa president,
who wants to transform the sport
Croatian tycoon says Zagreb seized conglomerate
Todoric claims proof of ‘mafia’
involvement as he fights
extradition from London
BEN HALL — LONDON
VALERIE HOPKINS — PODGORICA
In the years since Croatia became inde-
pendent in 1991, Ivica Todoric built the
Balkans’ largest privately owned com-
pany, cultivated ties to the country’s
most important power brokers and took
up residence in a palatial Zagreb castle.
The former owner of Agrokor, which
became one of Europe’s biggest corpo-
rate bankruptcy cases in recent times,
has claimed the company was illegally
seized from him by the government of
Croatia.
In an interview with the Financial
Times, Mr Todoric, who built Agrokor
from a flower trader into a regional con-
glomerate in a story that has become
emblematic of Croatia’s post-socialist
transition, said he had “proof the busi-
ness was taken from me and that the
mafia organised it with political
support”.
Mr Todoric is in London fighting
extradition to Croatia where he is
wanted for questioning over fraud alle-
gations relating to the collapse of
Agrokor last year.
A UK court in April ordered his extra-
dition — but he submitted new evidence
and judges were expected to rule on his
case today.
The Croatian government took con-
trol of the retail conglomerate last year
to try to save what it deemed a systemi-
cally important company from collapse.
Agrokor employs 52,000 people in
Croatia, Slovenia, Serbia, Bosnia-
Herzegovina and Hungary, and sup-
ports many more jobs at its suppliers.
Its €6.5bn annual sales last year were
equivalent to roughly 15 per cent of
Croatia’s gross domestic product and its
Legal Notices
through an expansion of the Club World
Cup, an annual competition between
seven of the globe’s top clubs, as well as
create a new league contest for national
sides.
Delegates from Fifa’s 37-member gov-
erning council are gathering in Kigali,
Rwanda for showdown talks on the pro-
posals that have polarised powerful fac-
tions and big clubs in world football.
Fifa has engaged in secret talks for
months with a consortium of interna-
tional investors including Japan’s Soft-
Bank, which has pledged to inject $25bn
into a Fifa-controlled joint venture that
would run the tournaments.
Mr Infantino has previously said the
investors represented “major interests
Ivica Todoric, centre, and lawyers Cherie Blair, left, and Jadranka Slokovic attend court last month. Right, an Agrokor ice cream factory — Pixsell/Bloomberg
tax payment accounted for some 3.5 per
cent of the national budget.
Agrokor’s creditors in July accepted a
debt resettlement deal that averts bank-
ruptcy.
Eighty per cent of shareholders,
including Russian banks Sberbank and
VTB, which together will own 46.7 per
cent of the company, voted to approve
the 7,300-page settlement plan.
Bondholders will receive 25.9 per cent
of the group, 15.3 per cent will go to
Croatian financial institutions and the
rest to suppliers.
★ FINANCIAL TIMES
COMPANIES
and multinationals in Asia, Europe and
North America”.
A person close to the talks said there
was no longer any sovereign involve-
ment in the investor proposal, after
heavy speculation that the entities close
to the governments of Saudi Arabia and
Abu Dhabi formed part of the group.
There is growing concern among the
group about Mr Infantino’s ability to
carry the proposal through its ruling
council, having already postponed a
vote on the plan earlier in May.
Fifa and the consortium will be forced
to abandon their talks unless requisite
support is secured this week, according
to a person close to the negotiations.
Uefa, European football’s governing
Retail. Agrokor
The company was placed under
emergency supervision of a state-
appointed administrator last year after
parliament enacted a special law,
dubbed Lex Agrokor, seizing control
from its owners.
Prosecutors in Croatia are investigat-
ing Mr Todoric and 14 other former
executives for allegedly making fraudu-
lent financial statements and for con-
cealing losses at the group.
Mr Todoric denied the accusations
and said there were no hidden loans
within the company.
He claims both the investigation and
the seizure of the company were politi-
cally motivated. “When they started
attacking us, we had no due debts,” he
said. “We have strong new arguments
on our side. We finally have the evi-
dence on the political side.”
He was referring to a number of
leaked emails and transcripts from the
investigation that suggest government
figures were intent on carving up the
company even before the true state of its
alleged problems were made known.
Two emails published on Tuesday,
among others, between former finance
minister Martina Dalic and Branimir
Bricelj from consulting company Altera
Corporate Finance and another consult-
ant Ante Ramljak, who went on to lead
Agrokor as an interim administrator
Automobiles
Ford’s incoming China chief faces task of reversing sales woes
EMILY FENG — BEIJING
Ford Motor has appointed a new China
chief as the US carmaker attempts to
tackle disappointing sales in the big-
gest car market.
The company has been without a head
of China operations since January,
when Jason Luo stepped down after only
five months in the job. “Personal rea-
sons that predate his time with Ford”
were cited.
Anning Chen, the former chief execu-
tive of state-owned Chinese carmaker
Chery, had been appointed president
and chief executive, the company said
in a statement yesterday.
Mr Chen would lead all of Ford’s
import and joint venture operations in
China as the head of the carmaker’s
business in the country, which would
become a standalone unit.
The move was “designed to accelerate
body, was set to vote against the propos-
als, with people close to the body saying
that all nine Uefa members on the Fifa
council were expected to remain stead-
fast in their opposition.
“We’re not going to vote for it,” said a
person close to Uefa’s leadership, adding
that leading European clubs and leagues
have been consulted and would back its
stance. “Given that [Fifa] are wanting
50 per cent of the competition to be
made up of European clubs, that’s not a
good start for the competition.”
According to documents seen by the
Financial Times, Mr Infantino will
present a number of options which each
involve expanding the Club World Cup
from seven teams to 24.
before stepping down, appear to show
that the law was amended to benefit a
New York hedge fund, Knighthead,
which was one of Agrokor’s biggest
creditors.
Ms Dalic, who resigned as deputy
prime minister and finance minister in
May after a previous batch of emails
were leaked, has denied wrongdoing.
Mr Bricelj and Knighthead did not
respond to requests for comment at
Agrokor’s creditors in July
accepted a debt
resettlement deal that
averts bankruptcy
time of publication. Mr Ramljak could
not be reached for comment.
Mr Todoric insisted the company was
not over-indebted at the time of the gov-
ernment swoop. He had been preparing
an initial public offering with a consor-
tium of international banks and his
accounts had been fully audited by
Baker Tilly.
He said he was duped into attending a
meeting with senior politicians includ-
ing the prime minister on February 26,
which the government portrayed as a
crisis meeting when Mr Todoric
requested financial help to save his busi-
Ford’s return to profitable growth in
China”, Ford said, by helping speed up
decision-making.
“Success in China is critical as we
reposition our global business for long-
term success,” Jim Hackett, Ford’s chief
executive, said in the statement. “We
are strengthening our commitment to
Anning Chen: ex-Chery head must
step up return to profitable growth
The first envisages the competition
taking place every four years, over 18
days “in June, the year before the Fifa
World Cup”.
The second would be a be a “yearly
competition, as a pre-season tourna-
ment in July-August”. While a third
option is an annual competition “in
another time slot to be discussed
further.”
Uefa is planning to object to all the
options believing they represent a
threat to the Champions League, con-
sidered the pinnacle of the club game,
which draws about €2.5bn in broadcast-
ing and sponsorship revenues every
year.
SoftBank declined to comment.
Agrokor’s recent performance
Revenues and pre-tax profits (HRKbn)
Revenues Pre-tax profit
(loss)
50 5 executive, that projection assumes an
40
0
30
-5
20
-10
10
0 -15
2009 11 13 15 17
Source: company
ness. “It was a mafia-style meeting, late
at night in a certain location,” he said.
He denied ever requesting financial
help. Three weeks after that first meet-
ing he was ordered to hand over his
shares in Agrokor.
The company’s difficulties started
when stories appeared in the media
about its financial problems, alarming
creditors, suppliers and customers, he
said.
He claimed the government leaked
details of the special restructuring law
Lex Agrokor, at which point the credi-
tors no longer wanted to engage with
him in talks about saving the company.
In an emailed statement, a Croatian
government spokesperson denied Mr
Todoric’s allegations, saying his state-
ments were “false and intended to mis-
interpret the reality”.
In March 2017, the spokesperson said,
Agrokor had run out of liquidity, “was
heavily indebted, no creditor wanted to
provide fresh financing, accounts were
blocked, retail chain Konzum’s shelves
were being emptied”.
The government took measures
because “the uncontrolled bankruptcy
of Agrokor and its subsidiaries would
have had devastating effects on the
Croatian economy, jobs, suppliers, small
farmers and success of the tourist
season.”
the China market and reorganising our
international markets to strengthen
their performance.”
Mr Chen’s appointment comes as
Ford tackles disappointing results in its
overseas markets.
Last year its China sales fell 6 per cent,
even as overall sales of automobiles in
China grew 3 per cent. Net profit for the
first half of this year was among the car-
maker’s worst since it began operating
in China in 2001, while sales in main-
land China in the six months to June
declined by a quarter from the same
period a year earlier.
In August, Ford unveiled a pared-
down sport utility vehicle designed for
Chinese consumers in an effort to com-
pete on price with domestic automak-
ers. It also plans to introduce 15 electric
vehicle models to China by 2025, to be
manufactured through a joint venture
operation announced last year with
Thursday 25 October 2018
Financials
Private equity
to surpass
hedge funds
as investors
hunt returns
LINDSAY FORTADO — NEW YORK
JAVIER ESPINOZA — LONDON
Private equity will overtake hedge
funds as the largest alternative asset
class within the next five years as inves-
tors flock to private rather than public
markets in search of returns, according
to a new analysis.
The figures by Preqin, a data provider,
are an average of the predictions of 420
fund managers and investors, who were
polled on each asset class.
The total assets under management
in alternative classes — which includes
hedge funds, private equity, private
debt and infrastructure, natural
resources and real estate funds — will
swell 59 per cent to $14tn by 2023, Pre-
qin said. But while private equity coffers
are expected to grow 58 per cent, from
$3.1tn at the end of 2017 to $4.9tn, hedge
funds are projected to expand 31 per
cent, from $3.6tn to $4.7tn.
While that “may sound like an overly
ambitious prediction” for private
equity, said Mark O’Hare, Preqin chief
annual compound growth rate of 8 per
cent, “lower than the average growth
rate we’ve seen in the past decade”.
“It is more likely to be too low than too
high,” he added.
A decade ago, at the height of the
financial crisis, about $3.1tn was man-
aged in alternative asset funds. Since
then, there has been a compound
annual growth rate of 12.1 per cent.
Private equity groups have been rais-
ing large funds at their fastest pace as
yield-starved investors have been piling
in seeking higher returns than those
provided by fixed income in a low inter-
Multiples paid on deals are
close to an all-time high
and in some cases are well
beyond 10 times ebitda
est rate environment. That has
increased firepower for private equity
deals — and fuelled concerns about the
prices being paid.
At the start of this year, Blackstone
bought the financial risk and data unit
of Thomson Reuters in the largest buy-
out deal of the past decade.
Multiples paid on deals are close to an
all-time high and in some cases are well
beyond the 10 times multiple on earn-
ings before interest, tax, depreciation
and amortisation paid over a decade
ago. This year, KKR sold schools group
Cognita to investment group Jacobs at
26 times ebitda.
Meanwhile, hedge funds are having a
lacklustre year. Hedge Fund Research’s
index of hedge fund performance across
all strategies is up 1.45 per cent this year
at the end of September, the lowest rate
of return at this point since 2015.
While hedge fund assets at the start of
the fourth quarter were at a record level,
their recent expansion has been
because of performance gains rather
than inflows, according to HFR. Inves-
tors pulled money in the second and
third quarters, for a total of $11.1bn in
redemptions for the year.
According to the Preqin forecasts,
some smaller alternative asset classes
may fare better than private equity.
Assets of private debt and infrastruc-
ture funds will double, to $1.4tn and
$1tn respectively, while real estate funds
are set to grow 50 per cent to $1.2tn. The
biggest rate of growth — 300 per cent —
is expected to come in natural resources
funds, to hit $800bn in five years.
China’s privately owned Anhui Zotye
Automobile.
Ford was set to report third-quarter
results yesterday, with Mr Hackett
likely to face tough questions from
investors and analysts about the com-
pany’s $11bn restructuring plan and
sliding share price.
Last week, Morgan Stanley down-
graded the company’s shares from
“overweight” to “hold”, citing a lack of
transparency about the restructuring.
The US-China trade war has darkened
Ford’s financial outlook. The carmaker
trimmed its 2018 earnings guidance,
blaming tariffs and competition in
China.
Last month Ford abandoned plans to
import China-made models of a new
Ford Focus compact car into the US
starting next year, because of a 25 per
cent tariff imposed by the Trump
administration in July.
Thursday 25 October 2018 ★ FINANCIAL TIMES 17

COMPANIES

Technology Aerospace & defence

Paytm founder accuses aide of blackmail Boeing and

Indian police investigate Berkshire Hathaway, which invested
$300m two months ago.
allegations of extortion at
mobile payments group
But Mr Sharma’s aide, Sonia Dhawan,
was arrested on Tuesday and has been
SIMON MUNDY — MUMBAI
remanded in custody for two weeks,
after he accused her of blackmail and
extortion, according to police.
Paytm, the $10bn Indian financial tech- Her husband and another Paytm
nology start-up, is in a state of upheaval employee have also been arrested.
after its founder accused a longstanding The three are accused of using Mr
aide of blackmailing him for $2.7m. Sharma’s personal data to demand
Vijay Shekhar Sharma, 40, is one of a Rs200m ($2.7m). The police did not
wave of Indian tech entrepreneurs to specify what kind of data or what the
have raised billions of dollars in foreign three allegedly threatened to do with it.
funding in recent years. As one of Mr Sharma’s closest assist-
His company has attracted more than ants, Ms Dhawan had login access to his
200m digital payments users, and has bank and email accounts, said Ajay Pal
backers including Warren Buffett’s Sharma, a senior superintendent of
police in New Delhi’s satellite city of
Noida, where Paytm is based.
“She was using his ATM cash card and
knew the pin codes,” he said.
He said Paytm had provided record-
ings of threatening telephone calls and
that the police were examining elec-
tronic devices seized from the suspects.
Ms Dhawan’s lawyer rejected the alle-
gations. He said Ms Dhawan and her
husband had themselves received a call
seeking to extort Rs50m on September
22, two days after Mr Sharma allegedly
received a similar call.
He said she appeared to be the victim
of a “conspiracy”, possibly because she
had resisted pressure to sell her stake in
the company as part of a recent share
Retail. Site pick
buyback. As of March 2017, Ms Dhawan
owned 1,400 of the company’s 47m
shares, according to a regulatory filing.
Ms Dhawan was one of Paytm’s first
employees, joining in 2010, the year that
Mr Sharma founded the company.
She oversaw public relations strategy
as Paytm became emblematic of a new
generation of Indian tech companies,
winning large investments from Japan’s
SoftBank and China’s Alibaba.
Berkshire Hathaway’s recent invest-
ment valued the company at $10bn.
Despite the enthusiasm of foreign
investors, some in India’s technology
and financial sectors have voiced scepti-
cism about Paytm’s growth outlook.
Its core mobile payments business is
Northrop
threatened by competition from offer-
ings built by the likes of WhatsApp and
enjoy a lift
Google. Its ecommerce business is far
short of the scale achieved by market
from military
leaders Flipkart and Amazon.
Its “payments bank” — a class of insti-
tution that can take deposits but not
spending
lend — has been blocked from signing
new customers after India’s central PATTI WALDMEIR AND ADAM SAMSON
bank detected undisclosed problems
Defence spending under President
during a routine audit.
Donald Trump and a continuing boom
Paytm assured customers yesterday
in air travel boosted Boeing, leading
that, despite the alleged theft of Mr
the aircraft manufacturer to raise its
Sharma’s data, “all our consumer data
full-year profit guidance after report-
are protected with the highest and most
ing better than expected third-quarter
impenetrable levels of security”.
results.
Additional reporting by Jyotsna Singh in
New Delhi Shares in Boeing were trading about
3 per cent higher at $360.50 by mid-
morning in New York, while fellow mili-
tary contractor Northrop Grumman ini-
tially rose but fell back slightly during
early trading to just under $300 each.
Boeing reported core earnings per

Speculation on Amazon’s second base grips investors share of $3.58 for the quarter ended Sep-
tember 30, up 37 per cent from the year-
earlier period and well above market
expectations.
It also boosted the outlook for full-
year core earnings per share to between
Quarterly earnings report $14.90 and $15.10. That was up from its
set to be eclipsed as top previous guidance of $14.30 to $14.50,
driven by a lower than expected tax rate
US cities vie to act as host and strong performance in its commer-
cial aircraft division.
Thanks to the defence volumes, third-
SHANNON BOND — SAN FRANCISCO
quarter revenues rose 4 per cent year on
Amazon will report its third-quarter year to $25.1bn, and full-year revenue
earnings today, but investors are eagerly guidance was increased by $1bn to
awaiting a bigger announcement from between $98bn and $100bn.
Seattle in the coming weeks. Military contractor Northrop, which
The ecommerce group said it would makes everything from autonomous
unveil its choice of where to locate its aircraft to radar systems and derives the
second headquarters by the end of the bulk of its business from US govern-
year, capping a contest across the US ment contracts, similarly enjoyed a lift
and Canada for a prize that will bring from its two biggest divisions and
billions of dollars in investment and increased the range for its profit out-
tens of thousands of jobs. look.
Amazon and the 20 cities on its short- It previously enhanced its forecast in
list have been tight-lipped about the July, but now expects earnings per
process. But that has not curbed specu- diluted share of between $18.75 and $19,
lation over which city is leading the up from $16.60 to $16.85. Analysts had
pack, with everything from Amazon’s forecast $16.94, according to a FactSet
Super Bowl ad to the flight records of survey.
chief executive Jeff Bezos’s private jet Northrop held steady its estimate for
feeding the rumour mill. $30bn in 2018 revenues, but said it now
expects operating profit margin in the
What is HQ2? mid 12 per cent range — an improve-
In September 2017, Amazon invited ment from the high 11 per cent forecast
bids for a second home, dubbed HQ2, from July. Net interest expense is
that would be a “full equal” to its Seattle expected to be $500m, down from
headquarters. It said it would spend at $520m previously, despite a rise in glo-
least $5bn building a site that would bal interest rates.
eventually house 50,000 employees. The group’s California-based aero-
It is seeking a site with local tech tal- space systems division, which is devel-
ent, a strong university, access to an oping the next-generation long-range
international airport, and “a stable and US bomber, logged a 5 per cent rise in
business-friendly environment and tax A visitor stands on a suspension bridge in the Amazon Spheres conservatory, Seattle. The glass orbs have 40,000 plants from around the world — Mike Kane/Bloomberg third-quarter profits to $3.28bn. Mis-
structure”. sion systems, which makes sensors,
After receiving 238 responses, Ama- radar and other technology, increased
zon whittled the list down to 20 finalists eration of tech workers and businesses. agreements Amazon required them long history of tax optimisation. But Data analysis aside, the strongest sales 3 per cent to $2.91bn. Technology
in January, ranging from big cities such “Amazon is magnetic to talent,” said to sign. other factors matter too. speculation centres on Washington or services lagged behind, with revenues
as New York and Los Angeles to regional Jeff Shulman, a marketing professor at But much attention has focused on “Incentives are overrated in the con- the two nearby suburban areas on Ama- down 12 per cent to $1.04bn.
contenders such as Raleigh, North Caro- University of Washington’s business how much cities are dangling in tax versation about HQ2,” said Jason Hor- zon’s shortlist, Northern Virginia and Overall revenues jumped to $8.09bn,
lina and Austin, Texas. school. breaks and other subsidies. The biggest witz, director of public policy and eco- Montgomery County in Maryland. from $6.57bn during the same three-
But it has pushed up housing prices offer that has been made public nomic analysis at Anderson Economic month period in 2017, slightly ahead of
Why is Amazon doing this? and commercial rents, to the dismay of comes from Maryland, where officials Group, a consulting firm. “I think what Why is DC a favourite? Wall Street estimates of $8bn.
The search is an acknowledgment that many local residents. proposed a package of tax credits and Amazon is looking for is a place where The DC area has considerable advan- Investor concerns about the impact of
Amazon’s next phase cannot be “It’s hard not to love a lot of what’s infrastructure improvements worth as they can attract the best talent in the tages. It would bring Amazon close to a tariff war on costs have depressed
absorbed by its home town. Amazon happening to the city as it becomes much as $8.5bn if Amazon chooses a world for the next 40 to 50 years.” government at a time when regulatory other industrial company shares, but
was born in Jeff Bezos’s garage in 1994, more walkable and dense,” said David location in Montgomery Co, outside Anderson’s index ranking factors scrutiny of its business is on the rise. companies with defence-related earn-
but moved into Seattle soon after. Rolf, a Seattle labour organiser. Washington. included in Amazon’s request for pro- “What is necessary for any large com- ings have been more insulated. The big-
As Amazon’s Seattle workforce has But “for the people priced out, the Multibillion-dollar inducements are posals, such as ease of transportation pany is to have a presence in Washing- ger risk for Boeing is that a trade war
swelled to more than 40,000, its foot- teachers, firefighters, home care aides, also on the table in Newark, New Jersey, and cost of doing business, puts New ton DC,” said Susan Wachter, a real between the US and China could lead
print has expanded to 10m sq ft — more longshoremen, hospital workers . . . the where state officials have promised York top of the list — an outcome consid- estate and finance professor at the Uni- some Chinese airlines to favour rival
than the next 40 biggest employers in question is, how could you manage $7bn in tax breaks. Chicago, Illinois, and ered unlikely by many observers. versity of Pennsylvania’s Wharton Airbus for aircraft purchases.
the city combined, according to a 2017 growth in a way that is inclusive?” Columbus, Ohio, have each proposed Based on housing market and quality School. Investors are also concerned that
Seattle Times analysis. more than $2bn worth of incentives. of life, Raleigh in North Carolina topped DC may also appeal to Mr Bezos on a defence companies such as Boeing could
What are cities offering? a separate list by ATTOM Data Solu- personal level. It is home to the Wash- see contracts with Saudi Arabia can-
How has Amazon changed Seattle? Amazon has kept details about its deci- Who are the front runners? tions, a real estate data company. A ington Post, the newspaper he bought in celled as a result of the current geopolit-
The company’s success has boosted the sion-making under wraps. The finalist Financial sweeteners are expected to stockpicking artificial intelligence sys- 2013, and last year he paid $23m for the ical crisis over the murder of journalist
city’s economy and attracted a new gen- cities have too, thanks to non-disclosure play a role in Amazon’s choice, given its tem at Wells Fargo picked Boston. city’s biggest private house. Jamal Khashoggi.

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18
Why challenger banks Metro and TSB struggle to make a difference
Matthew
Vincent
“The last time Britain faced an economic
shock, the banks were at the heart of the
problem. Thanks to the . . . arrival of new
challenger banks, banks and building
societies are now part of the solution”.
George Osborne, chancellor of the
exchequer, 2016
“We say that we want challenger banks,
but a condition of being a challenger bank
is that you have to look very much like an
existing bank.”
John Kay, visiting professor at the
London School of Economics, 2016
Two years on, it seems investors and
customers tend to the professor’s view,
and don’t think this solves very much
at all — at least judging by Metro Bank’s
share price, and TSB’s account-
switching numbers.
Yesterday morning, shares in
challenger bank Metro fell 12 per cent
Oil & gas
Former Afren
chiefs guilty of
$45m fraud
Heads of group diverted
payments meant for
Nigeria venture partner
BARNEY THOMPSON AND
MADISON DARBYSHIRE — LONDON
Two former executives at the collapsed
oil exploration company Afren have
been found guilty of fraud and money-
laundering after a six-week trial
in London.
Osman Shahenshah and Shahid
Ullah, the former chief executive and
chief operating officer respectively,
bought luxury villas in Mustique and
the British Virgin Islands with the pro-
ceeds of a secret deal they struck with an
Afren partner company.
The former executives had recom-
mended to Afren’s board that the com-
pany make payments to Oriental
Energy Resources totalling $300m. Ori-
ental and Afren were jointly developing
the Ebok oilfield off the coast of Nigeria
and the Nigerian partner wanted to
receive some of the profit share in
advance of cost recovery.
But the former executives failed to tell
the board of a secret side arrangement
under which they were to receive $45m
of that money from Oriental, routed to
them via an offshore shell company reg-
istered in the BVI called Ntiti Ltd. Ntiti
was owned by Mr Ullah and Mr Shahen-
shah’s wife. By the time their actions
were uncovered, the pair had managed
to disburse more than $30m of the
diverted funds, paying themselves and a
group of seven favoured Afren employ-
ees known as “the A-Team”.
The defendants did not dispute the
Transport
Stobart difficulties worsen with wider losses
JOSH SPERO
TRANSPORT CORRESPONDENT
Stobart Group’s pre-tax loss worsened
by almost half to £17.5m in the six
months to the end of August, capping a
difficult period featuring an acrimoni-
ous boardroom battle and a share-
holder revolt against the chairman.
Warwick Brady, chief executive of the
infrastructure mini-conglomerate that
owns Southend airport, yesterday
hailed “strong commercial progress” in
both aviation and energy and added
that the campaign against the chairman
by founder Andrew Tinkler was “a lot of
noise, which is annoying, but we’re not
going to let the noise of the founder dis-
tract us from driving this business for-
ward”.
Revenue at Stobart increased 21 per
despite higher profits — apparently
because it is having to look just like
existing lenders, in terms of price.
Metro reported a fall in its net
interest margin — the difference
between what it earns on loans and
what it pays out — from 1.94 per cent a
year ago to 1.77 per cent today, blaming
“competition in residential mortgages”.
And Jefferies’ analysts explained the
difficulty of the challenge: “Metro
squarely competes with the likes of
HSBC, Royal Bank of Scotland and
Lloyds . . . where it is, frankly, a price
taker in lower risk, low loan-to-value
mortgages . . . In our view, if mortgage
pricing pressures persist, fee income
growth will need to accelerate so that
Metro can make its 2020 targets.”
Some doubt it will. RBC’s analysts
lowered their 2018 profit estimates.
At the same time, new figures
showed challenger bank TSB lost more
current account customers than any
other institution in the second quarter
— apparently because of its botched
attempt to launch digital services that
look just like the existing players’.
Payments body Bacs said TSB suffered
a net loss of 16,641 accounts after an IT
existence of the side deal nor the trans-
fer of the money, but said they had been
acting in the financial interests of the
company. They claimed they had
wanted to ensure that Afren’s best
employees were not lured to rivals by
better pay at a time when the oil price
was soaring and the industry booming.
Mr Shahenshah, 56, who co-founded
Afren, and Mr Ullah, 59, were found
guilty of one count of fraud by abuse of
position and two related charges of
money laundering, in the prosecution
brought by the Serious Fraud Office.
A jury at Southwark Crown Court
acquitted them of a second count of
fraud by abuse of position relating to a
$100m payment to another partner,
called Amni International Petroleum
Development Company.
The men had told Afren’s board the
money was to resolve a tax dispute
between the groups, but the SFO alleged
the true purpose of the $100m was to
facilitate a buyout of Amni by its largest
shareholder, Tunde Afolabi.
Afren was once a highly regarded
FTSE 250 group with a market valua-
tion at its height of more than $2.6bn.
Its fortunes changed for the worse in
2014 when a law firm investigating
“unauthorised payments” found Mr
Shahenshah and Mr Ullah had con-
cocted the secret schemes to enrich
themselves and the A-Team. Heavily in
debt, Afren was close to a refinancing
deal with creditors but the banks shied
away when the suspicious payments
came to light. Its share price fell and, in
2015, the administrators were called in.
Mr Shahenshah and Mr Ullah were
bailed until sentencing next Monday.
Additional reporting by Jane Croft
cent to £151m in the six months. How-
ever, this included £15.7m from its
Flybe franchise aviation operation,
which is ending after rivals easyJet and
Ryanair agreed to expand their rosters
at Southend.
Ryanair will be basing three aircraft at
London Southend from 2019, represent-
ing an investment of $300m and more
than 55 flights a week. Mr Brady said the
commercial terms of the deal with
Ryanair reflected “the scarcity of peak
slots. Ryanair get more aeroplanes in
London and we’re going to get a huge
amount of footfall through that airport.”
Stobart’s rail and civil engineering
division swung from a £900,000 profit
in 2017 to a £6m loss this year after
downgrading the recorded performance
of existing contracts. The unit’s finan-
cial director was also replaced.
★ FINANCIAL TIMES
UK COMPANIES
meltdown led to 159,000 customer
complaints and cut its Trustpilot rating
to “Bad — 1 star”.
But, in some ways, the expectations
of challenger banks are unrealistic and
the lookalike claims unfair.
Metro is struggling to compete in
mortgages because of the unintended
consequences of regulation.
Ringfencing rules for the big banks
have forced them to bring deposits
onshore, where they have put all this
“trapped liquidity” to work in the
lowest-risk way: offering competitive
low loan-to value mortgages. Why else
did an August base rate rise result in
cheaper two-year mortgage deals?
Meanwhile, bank capital rules allow
established lenders to hold less capital
against mortgages, but prevent Metro
from doing so until at least 2019.
TSB is arguably competing far better
than its IT failures suggest. Its 16,000
account switchers represent around 0.3
per cent of its customer base, are not
much more numerous than NatWest’s
12,000, and are offset by 20,000 new
account openings.
If anything, then, the real challenges
are prescription and perception.
Hell’s Kitchen
Loss-hit chain
to enter talks
with creditors
Nick Dilworth, chief operating officer,
said the rail management team had
undertaken “a deep dive” into its con-
tracts: “The way in which we’ve taken a
prudent view [is] to recognise any sug-
gested losses immediately and effec-
tively defer any positive variances.” He
said he expected that position to
recover.
The company’s net debt more than
doubled from £36.6m to £75.6m
between February and August.
Stobart shares fell as much as 8 per
cent yesterday before recovering to
close 1.4 per cent higher at 218p.
The group’s troubles became public
earlier this year when former chief exec-
utive Mr Tinkler launched a campaign
to unseat chairman Iain Ferguson and
replace him with retail entrepreneur
Philip Day.
Patisserie: tart reply
Where does Patisserie Holdings keep
its paperwork? Down the back of a
kitchen drawer? Some two days after
Lombard asked how the café chain’s
chief executive and finance director
could exercise double the number of
share options that had been disclosed
in their 2014 long-term incentive plan,
there finally came an answer.
Yesterday, the company admitted
there had actually been not one, not
two, but three grants of exactly the
same number of options, in three
consecutive years. In addition to the
2014 LTIP options — the only ones
mentioned in the accounts — CEO Paul
May was granted a further 1,000,000,
and FD Chris March a further 666,666,
in both 2015 and 2016.
It was just that they, and chairman
Luke Johnson — who was head of the
company’s remuneration committee
throughout — somehow did not think it
worth mentioning. Not even to the
investors whose holdings were being
diluted to the tune of 3.33m shares and
who were effectively giving Messrs May
and Marsh another £1.7m — at least —
Gourmet Burger Kitchen, the UK high
street restaurant chain owned by South
Africa’s Famous Brands group, became
the latest victim of a crunch in casual
dining yesterday when it said it would
start restructuring talks with creditors.
Famous Brands first warned in
August it was considering strategic
options for one of its subsidiaries, and
announced last week that it would take
a pre-tax impairment of R874m
(£46.7m) in its group accounts relating
to GBK, which it bought in 2016.
GBK had suffered from “continued
adverse trading conditions and
sustained underperformance”, Famous
Brands said this month.
Financials
Broker FinnCap to float after Cavendish tie-up
HANNAH MURPHY
City stockbroker FinnCap plans to buy
Cavendish Corporate Finance and float
the combined business on Aim, Lon-
don’s junior market, as the introduc-
tion of tough EU markets rules spurs
consolidation in the UK broking sector.
FinnCap said in a statement yesterday
that it was acquiring Cavendish, a 40-
strong M&A advisory boutique co-
founded by Tory party treasurer
Howard Leigh, and expected to be
admitted to Aim in “early December”.
FinnCap, which provides corporate
advisory, research and trading services
to 125 small-cap clients, is chaired by
private equity veteran Jon Moulton. It
was bought out by staff, together with
Mr Moulton, in 2010.
FinnCap will pay £14m for Cavend-
for their stewardship of a business that
nearly collapsed two weeks ago.
It is only possible to say “at least”
because that is the profit the two men
are known to have made on their 2015
options. Patisserie Holdings is
inexplicably unable to say what the
exercise price — and therefore the
possible value — of the 2016 options
might have been. It is still “seeking to
understand why the grant of options
relating to 2015 and 2016 have not
been appropriately disclosed and
accounted for”. It provokes even more
questions than it answers. Principally:
How can an executive chairman and
head of a remuneration committee
either not know about or repeatedly
fail to disclose the existence of millions
of pounds’ worth of share options?
What kind of company creates a
long-term incentive plan that not only
pays out after just three years, but then
keeps doing so annually — defeating
the entire purpose of setting a long-
term target, paying once assuming it is
achieved and then setting fresh targets
over a new timeframe?
matthew.vincent@ft.com
In August it said that while the
group — which also includes brands
such as Steers, the South African
burger chain, and Wimpy’s South
African outlets — would post better
half-year results than the same
period a year ago, GBK would report
a larger operating loss.
In the 22 weeks to end July, GBK
recorded a £2.6m operating loss, up
from £872,000 a year earlier.
Yesterday Famous Brands said it
had decided to initiate a company
voluntary arrangement process with
the help of Grant Thornton, a tool
used by Jamie’s Italian and Prezzo to
restructure their debts.
Parmorama /Alamy
ish, £4.5m of which will be in cash while
the rest will be in equity, according to a
person close to the deal.
The broker is looking to raise about
£7m by going public, including roughly
£3.5m in new money, the person
said. Shares will be priced at 28p and the
newly combined group is expected to
have a market capitalisation of £47m
upon listing, the person added.
FinnCap said in its statement that
Lord Leigh had been proposed as the
executive deputy chairman of the new
group. Cavendish only ever represents
the selling side in deals, and has previ-
ously worked for department store Lib-
erty and leather goods group Smythson.
The deal comes at a time of upheaval
for the UK’s smaller brokers, which are
increasingly grappling with the fallout
from Europe’s Mifid II markets rules. As
Thursday 25 October 2018
Briefs
Metro Bank
Margins squeezed
Profits at Metro Bank more than
doubled year on year in the third
quarter, but the group’s margins
continued to shrink as competition
squeezes mortgage lenders.
The FTSE 250 company reported
a pre-tax profit of £10m for the
three months to September 30, 113
per cent higher than the same
period last year. Revenues rose
34 per cent to £105m.
But net interest margin — the
difference between how much
interest banks earn from lending
and how much they pay out — fell
to 1.77 per cent, from 1.94 per cent a
year ago.
Shares closed down more than
12 per cent yesterday.
Nicholas Megaw
Quilter
Net inflows fall
The wealth manager Quilter blamed
volatile investment markets for a
drop in net inflows in its latest
quarter, with turbulence and
uncertainty resulting in “weaker
investor sentiment”. It is the latest
UK wealth company to have
reported a slowdown in growth in
recent days.
Quilter, which was spun out from
Old Mutual last year, generated new
client flows of £500m in the three
months to September, down from
£1.3bn in the equivalent period last
year. In the year to date, the
company generated net inflows of
£2.7bn, down from the £4.5bn
generated at the same point in 2017.
Kate Beioley
TSB
Customers move away
More than 20,000 customers
switched their current accounts
from TSB in just three months as
the high street bank grappled with
an IT meltdown.
TSB made a net loss of 16,641
current accounts in the April-June
period, according to the payments
body Bacs — 21,790 people closed
their current accounts, but it
attracted 5,149 new customers.
The lender suffered the largest
net loss of current accounts of all
UK banks covered by Bacs, despite
its relatively small size compared
with RBS, Lloyds and HSBC.
Naomi Rovnick
HSBC
Extradition bid fails
The US government has conceded
defeat in its battle to extradite the
former HSBC currencies trader
Stuart Scott to face forex-rigging
charges in New York.
The High Court ruled in July that
it would not be in the interests of
justice for Mr Scott to be extradited
to face 11 wire fraud charges, each
of which carries a maximum 30-
year jail sentence. Richard
Donoghue, US attorney for the
Eastern District of New York, wrote
to the US judge involved in the case
this week to say that an appeal to
the UK’s Supreme Court had failed.
Jane Croft
part of the changes, which came into
force in January, fund managers must
now pay separately for investment
research and trading.
This has prompted many fund man-
agers to cut back on the research they
receive, squeezing brokers’ research
revenues at a time of falling commission
payments and a tepid initial public
offering market.
Sam Smith, FinnCap’s chief executive,
said the brokerage house planned to
“expand its suite of services and further
strengthen its market position”. The
Cavendish tie-up would build out its
M&A services and “add a debt advisory
capability to its capital raising activi-
ties,” she said. Lord Leigh said that Cav-
endish would bring “a global dimension
to the Group’s corporate finance and
M&A capabilities”.
Thursday 25 October 2018 FINANCIAL TIMES 19

www.ft.com/work-careers/recruitment
20 ★ FINANCIAL TIMES Thursday 25 October 2018

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 $

-0.58% -1.04% -0.22% -0.20% -0.38% -0.70% -0.524% -0.463%

No change
0.11% 0.37% 0.410% 0.88% 1.12%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Sep 25 - - Index All World Sep 25 - Oct 24 Index All World Sep 25 - Oct 24 Index All World Sep 25 - Oct 24 Index All World Sep 25 - Oct 24 Index All World Sep 25 - Oct 24 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,915.56 16,207.32 12,350.82 23,869.93 2,339.17
7,507.56
2,724.74 15,093.58 11,191.63
6,962.98 22,091.18 2,097.58
Day -0.58% Month -7.06% Year 6.15% Day -1.25% Month -6.87% Year -5.10% Day 0.11% Month -6.61% Year -7.46% Day -0.73% Month -4.47% Year NaN% Day 0.37% Month -7.45% Year 1.82% Day -0.40% Month -10.33% Year -15.76%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
8,007.47 49,651.55 1,505.56 9,493.60 27,477.67 3,219.16

7,360.00 46,182.91 1,390.13 3,032.08

8,677.40 25,249.78
Day -1.04% Month -7.95% Year 11.62% Day -0.57% Month -6.54% Year -7.92% Day -0.20% Month -7.13% Year -9.19% Day NaN% Month NaN% Year NaN% Day -0.38% Month -9.67% Year -10.80% Day 0.02% Month -5.77% Year -9.48%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
21,668.99 36,841.60
26,492.21 84,140.51 5,479.10 2,781.14
25,136.57 78,656.16 2,603.30
4,953.09 18,485.46 34,033.96
Day -0.22% Month -6.04% Year 7.97% Day -1.36% Month 7.94% Year 10.25% Day -0.29% Month -9.85% Year -8.05% Day -1.69% Month -13.35% Year -18.29% Day 0.33% Month -6.94% Year -23.00% Day 0.55% Month -7.62% Year 4.70%

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 28193.70 28359.72 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 20375.53 20699.53 Philippines Manila Comp 7129.42 7197.62 Taiwan Weighted Pr 9759.40 9775.20 Cross-Border DJ Global Titans ($) 308.00 309.88
Australia All Ordinaries 5926.50 5944.90 Czech RepublicPX 1062.79 1060.20 FTSE Italia Mid Cap 35130.65 35363.88 Poland Wig 55458.90 55490.46 Thailand Bangkok SET 1623.37 1658.56 Euro Stoxx 50 (Eur) 3132.25 3140.94
S&P/ASX 200 5829.00 5843.10 Denmark OMXC Copenahgen 20 891.49 886.53 FTSE MIB 18485.46 18802.47 Portugal PSI 20 4932.20 4932.54 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 967.69 968.77
S&P/ASX 200 Res 4156.70 4214.00 Egypt EGX 30 13644.16 13689.39 Japan 2nd Section 7134.09 7150.20 PSI General 2921.82 2916.81 UAE Abu Dhabi General Index 4970.30 4956.19 FTSE 4Good Global ($) 6544.00 6607.33
Austria ATX 3050.47 3123.03 Estonia OMX Tallinn 1207.65 1210.35 Nikkei 225 22091.18 22010.78 Romania BET Index 8626.14 8641.52 UK FT 30 2919.70 2940.30 FTSE All World ($) 319.43 321.69
Belgium BEL 20 3427.72 3437.39 Finland OMX Helsinki General 9061.71 9065.55 S&P Topix 150 1343.93 1344.05 Russia Micex Index 2343.06 2305.58 FTSE 100 6962.98 6955.21 FTSE E300 1390.13 1392.96
BEL Mid 6479.54 6576.30 France CAC 40 4953.09 4967.69 Topix 1652.07 1650.72 RTX 1127.68 1106.82 FTSE 4Good UK 6247.38 6238.76 FTSE Eurotop 100 2691.46 2696.02
Brazil Bovespa 84140.51 85300.03 SBF 120 3968.70 3976.98 Jordan Amman SE 1969.64 1969.57 Saudi-Arabia TADAWUL All Share Index 7549.77 7648.64 FTSE All Share 3815.79 3809.97 FTSE Global 100 ($) 1679.75 1694.07
Canada S&P/TSX 60 895.91 907.62 Germany M-DAX 23278.15 23410.66 Kenya NSE 20 2803.01 2807.12 Singapore FTSE Straits Times 3032.08 3031.39 FTSE techMARK 100 4268.41 4264.02 FTSE Gold Min ($) 1294.84 1278.34
S&P/TSX Comp 15093.58 15285.17 TecDAX 2531.80 2550.31 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 334.16 333.69 USA DJ Composite 8345.27 8344.00 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 827.62 889.64 XETRA Dax 11191.63 11274.28 Latvia OMX Riga 942.66 941.68 Slovenia SBI TOP 812.85 812.28 DJ Industrial 25136.57 25191.43 FTSE Multinationals ($) 1899.52 1918.22
Chile S&P/CLX IGPA Gen 26203.11 26048.37 Greece Athens Gen 632.56 619.47 Lithuania OMX Vilnius 661.07 663.75 South Africa FTSE/JSE All Share 50877.34 51168.50 DJ Transport 10181.39 10237.02 FTSE World ($) 569.18 573.36
China FTSE A200 8505.55 8489.77 FTSE/ASE 20 1669.48 1633.43 Luxembourg LuxX 1605.12 1630.65 FTSE/JSE Res 20 39731.20 39973.85 DJ Utilities 751.41 737.04 FTSEurofirst 100 (Eur) 3897.79 3905.03
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 25249.78 25346.55 Malaysia FTSE Bursa KLCI 1690.04 1697.60 FTSE/JSE Top 40 44669.76 45007.50 Nasdaq 100 7041.42 7118.67 FTSEurofirst 80 (Eur) 4370.86 4395.22
Shanghai A 2726.30 2717.35 HS China Enterprise 10226.41 10234.90 Mexico IPC 46182.91 46449.03 South Korea Kospi 2097.58 2106.10 Nasdaq Cmp 7360.00 7437.54 MSCI ACWI Fr ($) 487.37 492.78
Shanghai B 270.67 269.94 HSCC Red Chip 4096.20 4111.38 Morocco MASI 11185.45 11183.50 Kospi 200 271.36 272.54 NYSE Comp 12222.79 12287.44 MSCI All World ($) 2033.89 2053.44
Shanghai Comp 2603.30 2594.75 Hungary Bux 36452.74 37185.93 Netherlands AEX 507.80 510.86 Spain IBEX 35 8677.40 8726.10 S&P 500 2724.75 2740.69 MSCI Europe (Eur) 1469.21 1492.02
Shenzhen A 1356.21 1359.47 India BSE Sensex 34033.96 33847.23 AEX All Share 753.36 757.99 Sri Lanka CSE All Share 5770.52 5766.00 Wilshire 5000 28110.08 28279.62 MSCI Pacific ($) 2576.46 2627.52
Shenzhen B 881.92 875.82 Nifty 500 8555.65 8489.90 New Zealand NZX 50 8642.24 8673.18 Sweden OMX Stockholm 30 1511.64 1508.88 Venezuela IBC 364874.75 361333.78 S&P Euro (Eur) 1459.76 1468.77
Colombia COLCAP 1433.90 1440.38 Indonesia Jakarta Comp 5709.42 5797.89 Nigeria SE All Share 32962.82 32841.69 OMX Stockholm AS 555.57 554.12 Vietnam VNI 922.73 939.68 S&P Europe 350 (Eur) 1430.25 1433.56
Croatia CROBEX 1782.68 1785.90 Ireland ISEQ Overall 5917.33 5930.36 Norway Oslo All Share 990.56 984.96 Switzerland SMI Index 8724.61 8767.15 S&P Global 1200 ($) 2249.78 2264.14
Israel Tel Aviv 125 1454.64 1454.01 Pakistan KSE 100 39271.12 37714.90 Stoxx 50 (Eur) 2893.21 2893.00
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Oct 24 %Chg %Chg Oct 24 %Chg %Chg Oct 24 %Chg %Chg Oct 24 %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 31.7 221.52 -1.21 Bp 208.3 532.90 -0.30 Inditex 1861.1 24.55 0.19 Softbank . 1069.8 9205.00 48.00 British American Tobacco 3527.50 7.4 -28.6 Crest Nicholson Holdings 326.00 10.0 -40.2 Communisis 71.80 44.2 10.5 Tobacco 39813.23 6.4 -
Amazon.com 30.5 1746.49 -22.21 British American Tobacco 169.8 3527.50 23.00 Caixabank 434.4 3.37 -0.08 Fast Retailing Co., 730.7 57230.00 1230.00 Pearson 888.60 6.4 21.0 Amigo Holdings 239.95 7.8 - Dp Eurasia N.v. 110.00 22.2 -48.7 Beverages 21427.67 4.3 -1.3
At&t 20.3 30.99 -2.03 Glaxosmithkline 162.8 1552.60 9.20 Asml Holding 357.7 142.46 -5.40 Sony 443.3 6208.00 24.00 Randgold Resources Ld 6412.00 5.7 -13.9 Intu Properties 196.15 6.0 -21.9 Georgia Healthcare 246.00 10.6 -30.7 Fixed Line Telecommunication 2882.24 3.0 -8.3
Microsoft 16.9 106.05 -2.05 Bt 162.3 250.20 9.75 Total 317.4 50.64 -0.42 Toyota Motor 426.6 6578.00 34.00 Diageo 2693.00 4.8 0.6 Contourglobal 180.00 5.1 -31.0 Raven Property 44.70 6.4 -8.6 Gas Water & Multiutilities 4951.04 2.7 -4.3
Nvidia 16.0 213.42 -7.64 Hsbc Holdings 158.7 600.80 -5.90 Volkswagen Ag Vzo O.n. 307.0 133.70 -6.00 Mitsubishi Ufj Fin,. 423.7 664.10 -7.60 Royal Mail 363.00 4.6 -20.3 Travis Perkins 1048.00 4.8 -33.3 Xps Pensions 162.00 6.2 -14.5 Personal Goods 35586.16 2.5 -1.9
Netflix 14.4 322.72 -10.44 Diageo 150.6 2693.00 20.00 Allianz Se Na O.n. 304.0 182.28 0.86 Komatsu 404.2 2784.50 -145.50 Glaxosmithkline 1552.60 3.9 17.5 Energean Oil & Gas 609.00 4.5 - Mcbride 135.00 5.5 -40.3 Pharmaceuticals & Biotech. 14638.66 2.0 14.1
Advanced Micro Devices 12.3 23.82 -1.27 Rio Tinto 149.0 3599.50 -29.00 Kering 303.3 370.00 16.90 Sumitomo Mitsui Fin,. 348.7 4304.00 -67.00 Unilever 4173.50 3.7 3.2 Telecom Plus 1180.00 4.4 -2.8 Capital & Regional 41.60 5.3 -28.4 Food & Drug Retailers 3683.40 1.8 13.0
Boeing (the) 11.4 361.36 11.31 Bhp Billiton 136.2 1490.60 -30.60 Siemens Ag Na 282.3 99.98 0.54 Tokai Carbon Co., 341.2 1804.00 -155.00 Fresnillo 938.00 3.7 -34.6 Plus500 Ltd 1336.00 4.4 51.6 Carpetright 20.50 5.1 -50.9 Index - Technology Hardware & Equipment 937.00 1.4 -
Texas Instruments 9.9 96.84 -3.41 Glencore 133.9 297.90 -1.85 Safran 275.5 109.40 4.20 Fuji Heavy Industries 330.3 3008.00 -227.00 United Utilities 720.80 3.7 -11.7 Pennon 739.80 4.1 -4.0 City Of London Investment 394.00 4.1 -4.7 Real Estate Investment Trusts 2874.17 1.3 -9.1
Facebook 9.2 151.70 -2.69 Barclays 133.5 170.70 4.94 Bnp Paribas Act.a 270.0 46.46 -1.10 Kao 327.5 7547.00 -224.00 Bt 250.20 3.6 -9.0 Tate & Lyle 663.20 4.0 -4.0 Standard Life Private Equity Trust 350.00 3.9 -0.4 Electricity 6970.80 0.7 -9.7
Barclays 170.70 3.5 -16.0 Dechra Pharmaceuticals 2204.00 4.0 8.7 Vectura 72.70 3.8 -39.5 Media 7893.44 0.0 4.4
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
Reckitt Benckiser 6729.00 3.3 -1.0 Man 147.90 3.0 -28.5 Mckay Securities 280.00 3.7 21.2 Food Producers 7041.24 -0.3 -15.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Varian Medical Systems 114.81 10.48 10.05 Thomas Cook 43.52 3.42 8.53 Saipem 4.74 0.28 6.35 Oki Electric Industry , 1554.00 135.00 9.51 Micro Focus Int 1268.00 -10.7 -49.0 Weir 1412.00 -15.0 -34.1 Int Personal Finance 185.90 -15.3 -8.2 Construction & Materials 4976.60 -9.7 -
Xerox 27.94 1.29 4.84 Energean Oil & Gas 609.00 36.00 6.28 W__rtsil__ 13.83 0.65 4.89 Familymart Co., 13350.00 690.00 5.45 Smith (ds) 367.70 -10.2 -9.1 Integrafin Holdings 280.00 -14.4 - Enquest 26.80 -14.2 5.9 Industrial Engineering 10697.25 -9.0 -
Rollins 58.57 2.14 3.79 Elementis 197.10 8.70 4.62 Kering 370.00 16.90 4.79 Nippon Suisan Kaisha, 741.00 21.00 2.92 Crh 2081.00 -10.2 -21.5 William Hill 199.05 -14.1 -37.8 Circassia Pharmaceuticals 57.00 -12.4 -42.1 Software & Computer Services 1657.51 -8.2 -30.8
Dte Energy 115.95 4.01 3.58 Playtech 444.50 19.50 4.59 Getinge Ab Ser. B 8.31 0.32 4.06 Toyo Seikan Kaisha, 2287.00 64.00 2.88 Rentokil Initial 284.80 -9.5 -7.4 Sophos 425.20 -13.6 -26.9 Interserve 49.08 -11.9 -50.5 General Industrials 5500.09 -6.5 -
Amphenol 85.45 2.73 3.30 Iwg 220.80 9.30 4.40 Safran 109.40 4.20 3.99 Isetan Mitsukoshi Holdings 1270.00 35.00 2.83 Ashtead 1815.50 -9.4 -7.7 Metro Bank 2258.00 -13.3 -37.4 Low & Bonar 31.90 -11.4 -39.8 Electronic & Electrical Equip. 5737.94 -6.2 -
Antofagasta 727.20 -8.6 -27.4 Premier Oil 105.50 -13.0 38.1 Acacia Mining 142.00 -11.0 -30.0 Forestry & Paper 19644.33 -5.9 -5.6
Downs Downs Downs Downs
St. James's Place 970.20 -8.5 -21.6 Elementis 197.10 -12.2 -24.5 S&U 2000.00 -10.7 -14.7 Chemicals 13521.48 -5.2 -4.3
Dxc Technology 70.84 -16.72 -19.10 Metro Bank 2258.00 -316.00 -12.28 Stmicroelectronics 12.17 -1.35 -10.02 Toho Z Co., 3695.00 -550.00 -12.96
Schroders 2608.00 -8.2 -25.8 Bank Of Georgia 1498.60 -12.0 -57.7 Alfa Fin Software Holdings 126.00 -10.6 -76.8 Oil Equipment & Services 14013.75 -5.2 8.6
At&t 30.99 -2.03 -6.16 Sophos 425.20 -20.20 -4.54 Novozymes B A/s 40.21 -2.60 -6.07 Sumco 1388.00 -168.00 -10.80
Sage 525.60 -8.1 -33.3 Essentra 345.80 -11.8 -35.1 Gem Diamonds 101.00 -10.2 40.3 Travel & Leisure 8802.57 -5.1 -
General Dynamics 176.71 -11.04 -5.88 Sirius Minerals 22.68 -1.04 -4.38 Arcelormittal Sa 21.63 -1.34 -5.83 Tokai Carbon Co., 1804.00 -155.00 -7.91
Smurfit Kappa 2424.00 -7.3 -1.9 Mediclinic Int 347.50 -11.8 -46.5 Nostrum Oil & Gas 217.50 -10.1 -32.5 Support Services 7300.36 -4.9 -8.9
Viacom 30.80 -1.91 -5.84 Entertainment One 405.00 -17.40 -4.12 Porsche Autom.hldg Vzo 50.78 -3.10 -5.75 Fuji Heavy Industries 3008.00 -227.00 -7.02
Johnson Matthey 2858.00 -7.2 -6.8 Cairn Energy 186.50 -11.8 -11.4 Arrow Global 185.80 -9.6 -52.7 Industrial Metals 4883.19 -4.6 27.3
Discovery 31.09 -1.69 -5.16 Fresnillo 938.00 -39.20 -4.01 Deutsche Bank Ag Na O.n. 8.87 -0.44 -4.76 Showa Denko K.k. 5040.00 -340.00 -6.32
Standard Chartered 519.80 -7.2 -33.2 Ted Baker 1794.00 -11.5 -35.1 Volution 170.00 -9.3 -18.7 Aerospace & Defense 4746.14 -4.5 -2.7
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Oct 24 Currency Mid Change Mid Change Mid Change Oct 24 Currency Mid Change Mid Change Mid Change Oct 24 Currency Mid Change Mid Change Mid Change Oct 24 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 36.4850 -0.4500 41.5783 -0.7438 47.1096 -0.8044 Indonesia Indonesian Rupiah 15197.0000 7.0000 17318.5364 -87.0254 19622.4638 -82.8239 Poland Polish Zloty 3.7816 0.0316 4.3095 0.0126 4.8828 0.0181 ..Three Month 0.7751 0.0036 0.8823 -0.0007 - -
Australia Australian Dollar 1.4129 -0.0038 1.6102 -0.0132 1.8244 -0.0135 Israel Israeli Shekel 3.6814 0.0101 4.1953 -0.0114 4.7534 -0.0091 Romania Romanian Leu 4.0893 0.0176 4.6602 -0.0054 5.2801 -0.0019 ..One Year 0.7770 0.0036 0.8813 -0.0007 - -
Bahrain Bahrainin Dinar 0.3769 -0.0001 0.4295 -0.0025 0.4867 -0.0024 Japan Japanese Yen 112.5550 0.4600 128.2678 -0.1769 145.3316 -0.0839 Russia Russian Ruble 65.4550 -0.0887 74.5926 -0.5111 84.5159 -0.5109 United States United States Dollar - - 1.1396 -0.0063 1.2912 -0.0060
Bolivia Bolivian Boliviano 6.9100 - 7.8746 -0.0432 8.9222 -0.0418 ..One Month 112.5547 0.4595 128.2678 -0.1769 145.3315 -0.0841 Saudi Arabia Saudi Riyal 3.7511 -0.0008 4.2748 -0.0244 4.8434 -0.0237 ..One Month - - 1.1393 -0.1576 1.2914 -0.0061
Brazil Brazilian Real 3.7190 0.0042 4.2381 -0.0185 4.8019 -0.0171 ..Three Month 112.5541 0.4582 128.2678 -0.1769 145.3312 -0.0848 Singapore Singapore Dollar 1.3801 0.0009 1.5728 -0.0075 1.7820 -0.0071 ..Three Month - - 1.1386 -0.1577 1.2918 -0.0060
Canada Canadian Dollar 1.3011 -0.0097 1.4827 -0.0193 1.6800 -0.0205 ..One Year 112.5514 0.4528 128.2680 -0.1766 145.3315 -0.0859 South Africa South African Rand 14.4282 - 16.4423 -0.0902 18.6297 -0.0872 ..One Year - - 1.1357 -0.1576 1.2937 -0.0061
Chile Chilean Peso 688.7350 4.5450 784.8832 0.8999 889.2985 1.7314 Kenya Kenyan Shilling 101.2000 0.2500 115.3276 -0.3465 130.6700 -0.2876 South Korea South Korean Won 1132.1500 -5.4000 1290.1996 -13.2691 1461.8385 -13.8511 Venezuela Venezuelan Bolivar Fuerte 248519.9500 312.0500 283213.6183 -1196.8961 320890.350 -1097.9479
China Chinese Yuan 6.9401 0.0016 7.9089 -0.0416 8.9611 -0.0399 Kuwait Kuwaiti Dinar 0.3036 0.0002 0.3459 -0.0017 0.3919 -0.0016 Sweden Swedish Krona 9.0990 0.0558 10.3692 0.0071 11.7486 0.0174 9
Colombia Colombian Peso 3151.4200 40.2450 3591.3619 26.4025 4069.1313 33.1513 Malaysia Malaysian Ringgit 4.1665 0.0030 4.7481 -0.0226 5.3798 -0.0213 Switzerland Swiss Franc 0.9980 0.0028 1.1373 -0.0031 1.2886 -0.0025 Vietnam Vietnamese Dong 23349.0000 0.5000 26608.5536 -145.5097 30148.3601 -140.6271
Costa Rica Costa Rican Colon 593.1600 -0.5200 675.9658 -4.3060 765.8915 -4.2613 Mexico Mexican Peson 19.4434 0.0044 22.1577 -0.1166 25.1054 -0.1119 Taiwan New Taiwan Dollar 30.9360 -0.0300 35.2547 -0.2279 39.9447 -0.2260 European Union Euro 0.8775 0.0048 - - 1.1330 0.0009
Czech Republic Czech Koruna 22.6773 0.1743 25.8430 0.0579 29.2810 0.0890 New Zealand New Zealand Dollar 1.5295 0.0009 1.7430 -0.0085 1.9749 -0.0080 Thailand Thai Baht 32.8800 0.1050 37.4701 -0.0853 42.4548 -0.0626 ..One Month 0.8772 0.0048 - - 1.1329 0.0009
Denmark Danish Krone 6.5470 0.0362 7.4609 0.0005 8.4535 0.0074 Nigeria Nigerian Naira 363.7000 - 414.4729 -2.2749 469.6115 -2.1992 Tunisia Tunisian Dinar 2.8555 0.0088 3.2541 -0.0078 3.6870 -0.0059 ..Three Month 0.8765 0.0048 - - 1.1327 0.0009
Egypt Egyptian Pound 17.9100 0.0110 20.4103 -0.0994 23.1255 -0.0940 Norway Norwegian Krone 8.3271 0.0293 9.4895 -0.0186 10.7519 -0.0124 Turkey Turkish Lira 5.6624 -0.1308 6.4529 -0.1853 7.3113 -0.2039 ..One Year 0.8736 0.0048 - - 1.1318 0.0009
Hong Kong Hong Kong Dollar 7.8416 0.0013 8.9362 -0.0476 10.1251 -0.0457 Pakistan Pakistani Rupee 132.1500 -1.8000 150.5983 -2.8891 170.6328 -3.1341 United Arab Emirates UAE Dirham 3.6731 -0.0001 4.1858 -0.0231 4.7427 -0.0223
Hungary Hungarian Forint 283.7311 2.0101 323.3403 0.5286 366.3552 0.8919 Peru Peruvian Nuevo Sol 3.3396 0.0011 3.8058 -0.0196 4.3121 -0.0187 United Kingdom Pound Sterling 0.7745 0.0036 0.8826 -0.0007 - -
India Indian Rupee 73.2100 -0.3463 83.4302 -0.8547 94.5292 -0.8919 Philippines Philippine Peso 53.7425 -0.0775 61.2450 -0.4250 69.3926 -0.4255 ..One Month 0.7746 0.0036 0.8825 -0.0007 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Oct 24 Oct 23 Oct 22 Oct 19 Oct 18 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2919.70 2940.30 2936.40 2937.70 2946.60 0.00 3384.10 2922.50 Tech Hardware & Eq 31.08 Consumer Services -4.84 Travel & Leisure -11.55 FTSE 100 Price Change FTSE 100 Price Change
Oct 24 chge% Index Oct 23 Oct 22 ago yield% Cover ratio adj Return FT 30 Div Yield 2.04 2.03 2.03 2.06 2.05 0.00 3.93 2.74 Industrial Metals & 27.32 Gas Water & Multi -4.98 Health Care Eq & Srv -12.78 3I Group PLC 832.40 -11.60 London Stock Exchange Group PLC 4235 15.00
FTSE 100 (100) 6962.98 0.11 6143.41 6955.21 7042.80 7447.21 4.35 2.01 11.46 265.84 6119.75 P/E Ratio net 21.89 21.97 21.95 21.69 21.74 0.00 19.44 14.26 Pharmace & Biotech 14.44 Leisure Goods -5.05 Household Goods & Ho -12.81 Admiral Group PLC 1977.5 12.00 Marks And Spencer Group PLC 285.60 1.40
FTSE 250 (250) 18406.48 0.30 16239.96 18352.12 18758.22 20073.30 3.14 2.20 14.47 462.62 13846.13 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food & Drug Retailer 12.83 Utilities -5.91 Financial Services -12.92 Anglo American PLC 1606.4 -15.60 Melrose Industries PLC 155.30 -2.10
FTSE 250 ex Inv Co (196) 19446.58 0.28 17157.64 19391.38 19834.40 21541.42 3.31 1.96 15.39 514.87 14940.92 FT 30 hourly changes Oil Equipment & Serv 12.59 FTSE SmallCap Index -6.13 Financials -13.95 Antofagasta PLC 727.20 -29.40 Micro Focus International PLC 1268 -48.50
FTSE 350 (350) 3861.85 0.14 3407.29 3856.40 3910.87 4143.07 4.16 2.03 11.86 139.08 6798.32 8 9 10 11 12 13 14 15 16 High Low Health Care 11.28 NON FINANCIALS Index -6.32 Real Est Invest & Se -14.40 Ashtead Group PLC 1815.5 -2.50 Mondi PLC 1745 3.00
FTSE 350 ex Investment Trusts (295) 3820.51 0.13 3370.82 3815.49 3868.39 4107.24 4.22 1.99 11.91 139.90 3467.04 2940.3 2915.5 2913.6 2920.9 2927.2 2922.9 2920.6 2916.9 2920.8 2940.3 2906.2 Automobiles & Parts 4.77 Support Services -7.31 Food Producers -14.99 Associated British Foods PLC 2334 50.00 Morrison (Wm) Supermarkets PLC 250.50 1.80
FTSE 350 Higher Yield (103) 3557.80 -0.05 3139.03 3559.69 3604.06 3796.97 5.65 1.84 9.63 166.05 6671.12 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Oil & Gas 3.81 Real Est Invest & Tr -7.31 Consumer Goods -15.20 Astrazeneca PLC 5931 - National Grid PLC 839.10 8.50
FTSE 350 Lower Yield (247) 3799.80 0.37 3352.55 3785.96 3846.71 4101.85 2.44 2.55 16.13 91.58 4295.86 Oil & Gas Producers 3.63 FTSE 100 Index -8.30 General Retailers -15.41 Aviva PLC 413.90 -7.10 Next PLC 5120 26.00
FTSE SmallCap (285) 5481.70 0.45 4836.48 5457.24 5544.00 5787.20 3.55 2.06 13.69 153.04 8166.87 Media 3.32 FTSE All{HY-}Share Index -8.37 Life Insurance -19.22
FTSE SmallCap ex Inv Co (159) 4631.98 0.56 4086.78 4606.32 4687.38 5063.45 3.75 1.59 16.78 133.14 7256.79 FX: EFFECTIVE INDICES Aerospace & Defense -0.98 Electricity -8.96 Banks -19.42
Bae Systems PLC 536.40 0.20 Nmc Health PLC 3214 -16.00
Barclays PLC 170.70 4.94 Ocado Group PLC 801.20 28.40
FTSE All-Share (635) 3815.79 0.15 3366.65 3809.97 3864.04 4091.17 4.13 2.03 11.92 136.27 6788.96
Oct 23 Oct 22 Mnth Ago Oct 24 Oct 23 Mnth Ago Beverages -1.10 Basic Materials -8.98 Construct & Material -20.50 Barratt Developments PLC 496.30 -1.30 Paddy Power Betfair PLC 6330 95.00
FTSE All-Share ex Inv Co (454) 3749.01 0.14 3307.73 3743.74 3795.95 4031.83 4.21 1.98 11.99 136.68 3456.78 Equity Invest Instr -1.87 Fixed Line Telecomms -9.18 Industrial Transport -21.46 Berkeley Group Holdings (The) PLC 3284 10.00 Pearson PLC 888.60 0.80
FTSE All-Share ex Multinationals (564) 1121.68 0.43 820.24 1116.88 1134.05 1233.17 4.03 1.77 14.05 37.54 2100.10 Australia - - - Sweden - - - Forestry & Paper -1.98 FTSE 250 Index -9.31 Technology -23.59 Bhp Billiton PLC 1490.6 -30.60 Persimmon PLC 2200 6.00
FTSE Fledgling (102) 10315.06 -0.06 9100.93 10321.74 10442.12 10626.11 3.16 1.77 17.86 230.01 20002.29 Canada - - - Switzerland - - - Chemicals -2.12 Industrials -9.61 Software & Comp Serv -26.16 BP PLC 532.90 -0.30 Prudential PLC 1495 -10.00
FTSE Fledgling ex Inv Co (51) 14948.81 -0.04 13189.27 14954.41 15104.40 15172.78 3.62 -0.72 -38.21 353.92 28369.70 Denmark - - - UK 78.51 78.45 77.97 Nonlife Insurance -2.73 Industrial Eng -9.73 Telecommunications -27.11 British American Tobacco PLC 3527.5 23.00 Randgold Resources LD 6412 -122.00
FTSE All-Small (387) 3823.37 0.42 3373.34 3807.36 3867.02 4031.62 3.53 2.04 13.86 105.63 7310.12 Japan - - - USA - - - Personal Goods -3.14 Mining -10.59 Tobacco -30.91 British Land Company PLC 577.60 5.80 Reckitt Benckiser Group PLC 6729 142.00
FTSE All-Small ex Inv Co (210) 3489.74 0.53 3078.98 3471.20 3531.27 3803.84 3.74 1.50 17.77 99.62 6925.85 New Zealand - - - Euro - - - Electronic & Elec Eq -10.73 Mobile Telecomms -33.95 Bt Group PLC 250.20 9.75 Relx PLC 1525.5 19.50
FTSE AIM All-Share (813) 976.86 -0.06 861.88 977.44 996.85 1021.76 1.43 1.34 51.87 11.04 1093.32 Norway - - -
Bunzl PLC 2198 8.00 Rentokil Initial PLC 284.80 -1.10
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1672 1.50 Rightmove PLC 438.05 7.15
Oil & Gas (15) 9351.90 -0.26 8251.14 9376.72 9660.94 8799.00 5.25 1.20 15.85 368.83 9263.08 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 4197 -15.00 Rio Tinto PLC 3599.5 -29.00
Oil & Gas Producers (10) 8992.46 -0.32 7934.01 9021.43 9291.86 8466.62 5.30 1.21 15.60 355.96 9225.69 Centrica PLC 149.05 1.00 Rolls-Royce Holdings PLC 840.00 -1.40
Oil Equipment Services & Distribution (5)14679.59 2.22 12951.74 14360.33 15007.45 13393.39 3.37 0.61 48.75 487.46 11972.72 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2309 -12.00 Royal Bank Of Scotland Group PLC 230.70 -2.10
Basic Materials (28) 5611.10 -0.99 4950.65 5666.95 5786.13 5872.07 5.00 2.49 8.04 282.83 6108.94 Compass Group PLC 1505 22.00 Royal Dutch Shell PLC 2418.5 -10.00
Chemicals (8) 14392.79 0.00 12698.70 14392.51 14855.90 14856.12 2.18 2.30 20.02 280.88 13233.99 Oct 23 No of US $ Day Mth YTD Total
YTD Gr Div Oct 23 No of US $ Day Mth YTD Total YTD Gr Div Crh PLC 2081 -10.00 Royal Dutch Shell PLC 2468 -14.50
Forestry & Paper (1) 21435.58 0.17 18912.52 21398.73 21902.37 21555.97 3.27 3.13 9.78 700.08 24264.54 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Croda International PLC 4644 27.00 Royal Mail PLC 363.00 8.70
Industrial Metals & Mining (2) 5259.97 1.65 4640.85 5174.39 5245.39 3698.07 6.82 2.81 5.22 531.83 5462.97 FTSE Global All Cap 7881 550.22 -1.2 -8.0 -5.4 806.84
-3.5 2.5 Oil & Gas Producers 108 374.42 -2.5 -2.5 -0.5 645.69 2.3 3.7 Dcc PLC 6360 35.00 Rsa Insurance Group PLC 543.80 0.20
Mining (17) 15618.97 -1.22 13780.55 15811.72 16123.58 16522.27 5.39 2.47 7.52 840.82 8938.85 FTSE Global Large Cap 1439 488.08 -1.1 -7.4 -4.6 735.47
-2.5 2.6 Oil Equipment & Services 32 271.88 -2.0 -2.0 -13.6 410.86 -11.2 4.1 Diageo PLC 2693 20.00 Sage Group PLC 525.60 -9.60
FTSE Global Mid Cap 1772 721.33 -1.3 -9.2 -8.1 999.83
-6.5 2.3 Basic Materials 258 470.25 -2.0 -2.0 -13.7 746.31 -11.3 3.3 Direct Line Insurance Group PLC 329.40 4.40 Sainsbury (J) PLC 305.10 0.20
Industrials (105) 4852.82 0.13 4281.62 4846.63 4949.38 5545.67 2.81 1.83 19.48 115.47 5169.10
Construction & Materials (15) 5267.37 -0.55 4647.38 5296.59 5432.61 7053.01 3.19 0.38 81.87 168.59 5794.40 FTSE Global Small Cap 4670 765.94 -1.4 -10.4 -7.4 1025.33
-5.9 2.1 Chemicals 120 695.87 -2.1 -2.1 -13.6 1103.00 -11.6 2.8 Easyjet PLC 1141 8.50 Schroders PLC 2608 -40.00
Aerospace & Defense (9) 4936.52 0.13 4355.47 4930.29 5004.27 5410.90 2.54 3.45 11.40 109.51 5456.97 FTSE All-World 3211 321.69 -1.1 -7.7 -5.2 498.70
-3.2 2.6 Forestry & Paper 18 282.12 -2.5 -2.5 -8.4 496.48 -6.1 3.1 Evraz PLC 521.40 10.00 Scottish Mortgage Investment Trust PLC 466.00 5.70
General Industrials (8) 4454.50 -0.66 3930.18 4483.90 4567.84 5146.53 3.43 1.16 25.07 147.32 5296.18 FTSE World 2620 573.36 -1.1 -7.6 -4.3 1193.07
-2.3 2.5 Industrial Metals & Mining 66 403.23 -2.8 -2.8 -17.3 638.65 -14.9 3.6 Experian PLC 1766.5 16.50 Segro PLC 628.00 9.80
Electronic & Electrical Equipment (10) 6995.48 0.53 6172.08 6958.85 7164.84 7898.68 1.99 2.18 23.01 115.12 6533.05 FTSE Global All Cap ex UNITED KINGDOM In 7563 574.05 -1.1 -8.0 -4.9 827.94
-3.1 2.4 Mining 54 575.68 -1.2 -1.2 -12.3 925.17 -8.6 4.4 Ferguson PLC 5215 -97.00 Severn Trent PLC 1856 13.50
Industrial Engineering (11) 11881.59 0.04 10483.08 11876.72 12255.56 13496.47 2.53 1.71 23.10 289.55 14936.80 FTSE Global All Cap ex USA 6012 457.08 -1.8 -9.2 -13.3 723.10
-11.0 3.2 Industrials 577 377.15 -1.8 -1.8 -9.1 557.27 -7.6 2.2 Fresnillo PLC 938.00 -39.20 Shire PLC 4485 19.00
Industrial Transportation (6) 4143.86 1.07 3656.11 4099.88 4193.31 4699.04 5.21 1.05 18.37 170.22 3920.37 FTSE Global All Cap ex JAPAN 6543 563.25 -1.1 -8.0 -5.2 833.78
-3.2 2.5 Construction & Materials 117 456.40 -2.2 -2.2 -18.0 705.00 -16.4 2.5 Glaxosmithkline PLC 1552.6 9.20 Smith & Nephew PLC 1275.5 7.00
Support Services (46) 7166.30 0.40 6322.80 7137.59 7280.43 7909.30 2.62 2.03 18.82 141.17 7660.71 FTSE Global All Cap ex Eurozone 7193 574.15 -1.1 -7.6 -4.4 825.28
-2.6 2.4 Aerospace & Defense 29 805.36 -1.0 -1.0 4.7 1175.95 6.3 1.9 Glencore PLC 297.90 -1.85 Smith (Ds) PLC 367.70 3.80
FTSE Developed 2193 522.92 -1.0 -7.7 -3.9 773.01
-1.9 2.5 General Industrials 58 206.26 -1.5 -1.5 -14.1 330.77 -12.3 2.7 Gvc Holdings PLC 866.50 -4.00 Smiths Group PLC 1283 3.50
Consumer Goods (42) 19348.33 0.83 17070.95 19188.71 19063.70 21827.30 3.75 4.56 5.86 640.99 15023.09
FTSE Developed All Cap 5770 548.94 -1.1 -8.0 -4.1 801.00
-2.2 2.4 Electronic & Electrical Equipment 78 395.72 -2.1 -2.1 -14.2 533.61 -13.0 1.7 Halma PLC 1250 13.00 Smurfit Kappa Group PLC 2424 -98.00
Automobiles & Parts (1) 7637.62 0.05 6738.64 7633.55 7596.97 7412.05 2.05 0.00 0.00 291.29 7647.85
FTSE Developed Large Cap 927 485.66 -1.0 -7.3 -3.1 729.66
-1.1 2.6 Industrial Engineering 108 688.80 -2.9 -2.9 -20.3 1005.63 -18.7 2.6 Hargreaves Lansdown PLC 1762 18.50 Sse PLC 1136.5 7.00
Beverages (5) 21462.10 0.70 18935.92 21313.88 21451.16 20498.63 2.44 1.83 22.43 508.38 15727.26
FTSE Developed Europe Large Cap 247 336.01 -1.5 -9.6 -13.0 587.20
-10.1 3.8 Industrial Transportation 103 669.69 -1.9 -1.9 -6.6 991.35 -5.0 2.3 HSBC Holdings PLC 600.80 -5.90 St. James's Place PLC 970.20 -10.00
Food Producers (12) 7145.88 1.26 6304.78 7056.78 7157.50 8889.00 2.46 2.41 16.86 98.77 6316.21
FTSE Developed Europe Mid Cap 348 549.72 -2.2 -12.4 -13.8 852.79
-11.6 3.2 Support Services 84 396.38 -1.3 -1.3 3.4 558.62 5.0 1.6 Imperial Brands PLC 2645.5 -2.00 Standard Chartered PLC 519.80 -9.20
Household Goods & Home Construction (15)13670.94 1.26 12061.82 13500.37 13636.70 15355.20 4.38 2.27 10.04 562.10 10248.51
FTSE Dev Europe Small Cap 739 770.36 -2.6 -12.8 -15.2 1154.68
-13.1 3.1 Consumer Goods 435 446.08 -0.4 -0.4 -12.5 681.91 -10.5 2.8 Informa PLC 723.40 12.00 Standard Life Aberdeen PLC 258.35 -2.30
Leisure Goods (2) 9741.45 4.79 8594.84 9295.80 9731.14 8895.99 4.93 1.34 15.17 407.87 9506.77
FTSE North America Large Cap 288 589.76 -0.5 -6.2 2.8 824.02
4.5 2.1 Automobiles & Parts 109 351.95 0.0 0.0 -21.8 522.47 -19.8 3.3 Intercontinental Hotels Group PLC 3948 -27.00 Taylor Wimpey PLC 153.20 0.20
Personal Goods (5) 31022.69 0.91 27371.19 30744.34 30762.55 31674.71 3.08 2.86 11.37 727.49 21757.38
FTSE North America Mid Cap 400 811.76 -0.7 -8.5 -3.3 1050.89
-2.0 1.8 Beverages 45 612.86 -0.5 -0.5 -9.0 946.33 -7.5 2.7 International Consolidated Airlines Group S.A. 565.80 4.40 Tesco PLC 215.30 1.00
Tobacco (2) 39813.30 0.48 35127.11 39622.60 38260.76 52843.65 4.74 7.78 2.71 1676.42 27391.97
FTSE North America Small Cap 1392 844.91 -0.9 -10.0 -1.7 1060.70
-0.6 1.6 Food Producers 107 587.74 -0.6 -0.6 -7.2 920.78 -5.0 2.6 Intertek Group PLC 4429 42.00 Tui AG 1282 -14.00
Health Care (21) 10543.95 0.37 9302.89 10505.26 10570.39 9609.08 3.25 1.21 25.47 294.27 8518.37
FTSE North America 688 389.36 -0.5 -6.6 1.7 556.35
3.3 2.0 Household Goods & Home Construction 45 397.61 -0.2 -0.2 -15.6 605.98 -13.3 3.0 Itv PLC 151.15 -2.10 Unilever PLC 4173.5 43.00
Health Care Equipment & Services (9) 6748.59 0.10 5954.25 6742.11 6791.06 8155.35 1.94 2.74 18.79 124.14 5984.64
FTSE Developed ex North America 1505 242.17 -1.8 -9.5 -12.3 412.20
-9.9 3.3 Leisure Goods 31 214.97 -1.6 -1.6 -10.2 288.58 -9.1 1.1 Johnson Matthey PLC 2858 2.00 United Utilities Group PLC 720.80 6.00
Pharmaceuticals & Biotechnology (12)14530.49 0.40 12820.19 14473.24 14561.44 12809.02 3.38 1.12 26.41 419.27 10500.27
FTSE Japan Large Cap 197 364.76 -1.9 -8.0 -7.7 486.73
-5.8 2.3 Personal Goods 85 724.90 -1.4 -1.4 -4.0 1040.55 -2.4 2.0 Just Eat PLC 590.20 -5.60 Vodafone Group PLC 146.42 0.18
Consumer Services (91) 4892.27 0.67 4316.43 4859.65 4913.83 4956.11 3.03 2.05 16.05 123.35 4765.22 FTSE Japan Mid Cap 323 597.32 -2.2 -8.4 -9.8 760.18
-8.3 1.9 Tobacco 13 1125.56 1.4 1.4 -20.1 2461.65 -17.1 5.0
Food & Drug Retailers (6) 3834.97 0.80 3383.58 3804.67 3833.24 3130.96 1.94 2.07 24.88 67.71 4601.05 Kingfisher PLC 243.50 1.10 Whitbread PLC 4342 -54.00
FTSE Global wi JAPAN Small Cap 818 653.96 -2.0 -8.5 -12.2 861.40
-10.7 1.9 Health Care 204 530.76 -1.0 -1.0 5.5 783.95 7.4 1.9 Land Securities Group PLC 836.60 4.00 Wood Group (John) PLC 706.80 25.20
General Retailers (27) 2092.32 0.50 1846.04 2081.95 2099.85 2527.30 3.84 1.66 15.68 62.09 2502.45
FTSE Japan 520 154.69 -2.0 -8.1 -8.1 231.32
-6.3 2.2 Health Care Equipment & Services 79 984.82 -0.5 -0.5 12.0 1162.81 12.9 1.0 Legal & General Group PLC 240.60 - Wpp PLC 1056 14.50
Media (19) 7976.56 0.99 7037.69 7898.14 7956.76 7395.51 3.15 2.13 14.93 201.11 5113.78
FTSE Asia Pacific Large Cap ex Japan 529 621.22 -2.3 -10.4 -16.6 1013.94
-14.6 3.2 Pharmaceuticals & Biotechnology 125 362.70 -1.2 -1.2 2.7 563.25 5.0 2.4 Lloyds Banking Group PLC 56.66 0.27
Travel & Leisure (39) 8640.13 0.44 7623.15 8602.17 8742.43 9368.16 3.03 2.18 15.14 227.11 8488.98
FTSE Asia Pacific Mid Cap ex Japan 479 787.01 -1.9 -10.4 -19.3 1233.41
-17.1 3.5 Consumer Services 398 478.17 -0.8 -0.8 1.0 651.48 2.3 1.5
Telecommunications (6) 2412.71 1.42 2128.72 2378.86 2426.60 3181.52 7.78 1.13 11.36 127.55 2940.72 FTSE Asia Pacific Small Cap ex Japan 1468 494.67 -2.0 -11.7 -19.7 759.18
-17.9 3.1 Food & Drug Retailers 58 277.42 -0.4 -0.4 -5.2 398.69 -3.2 2.4
Fixed Line Telecommunications (4) 2948.94 3.86 2601.84 2839.48 2877.00 3176.31 6.00 1.25 13.34 119.53 2924.40
Mobile Telecommunications (2) 3273.99 0.12 2888.63 3269.95 3347.54 4755.71 8.76 1.09 10.49 195.75 3588.79
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1008 488.47
2111 668.50
-2.3
-2.0
-10.4
-8.3
-16.9 846.97
-14.8 3.2 General Retailers
-17.2 1037.56
-14.9 3.2 Media
129 767.27
79 328.42
-0.8
-1.2
-0.8
-1.2
10.8 1012.85
-4.3 449.30
11.8
-2.9
1.1
1.7
UK STOCK MARKET TRADING DATA
Utilities (8) 6923.75 0.86 6108.80 6865.00 6868.56 7629.63 6.20 1.46 11.01 353.29 8528.41 FTSE Emerging Large Cap 512 641.36 -2.1 -8.3 -16.3 1002.41
-14.1 3.1 Travel & Leisure 132 438.45 -0.4 -0.4 -8.4 606.04 -7.0 2.0 Oct 24 Oct 23 Oct 22 Oct 19 Oct 18 Yr Ago
Electricity (3) 6954.98 0.67 6136.35 6908.73 6965.75 7884.99 7.59 0.94 13.98 532.33 11103.73 FTSE Emerging Mid Cap 506 812.14 -1.5 -6.0 -18.1 1254.43
-15.6 3.8 Telecommunication 89 149.72 0.0 0.0 -9.9 297.57 -6.1 4.7 - - - - - -
Gas Water & Multiutilities (5) 6543.31 0.91 5773.13 6484.50 6474.11 7147.72 5.83 1.65 10.41 288.72 8010.63 FTSE Emerging Small Cap 1093 647.86 -1.7 -10.9 -22.7 963.66
-20.7 3.4 Fixed Line Telecommuniations 38 124.80 1.2 1.2 -7.6 275.06 -3.1 5.3 Order Book Turnover (m) 164.85 74.91 174.82 174.82 174.82 91.17
Financials (304) 4589.81 -0.11 4049.57 4594.78 4671.56 5229.67 4.25 1.76 13.36 184.27 4486.66 FTSE Emerging Europe 86 333.34 -1.0 -2.5 -14.5 557.31
-10.4 5.8 Mobile Telecommunications 51 158.43 -1.7 -1.7 -13.0 279.92 -10.1 3.9 Order Book Bargains 928635.00 863561.00 942685.00 942685.00 942685.00 898855.00
Banks (10) 3613.31 -0.36 3188.01 3626.51 3692.39 4447.01 5.02 1.29 15.47 182.70 2846.88 FTSE Latin America All Cap 240 878.55 -1.3 5.8 -5.3 1403.60
-2.9 3.1 Utilities 166 267.01 -0.9 -0.9 -3.3 543.42 -0.2 3.7 Order Book Shares Traded (m) 1542.00 1461.00 1678.00 1678.00 1678.00 1363.00
Nonlife Insurance (10) 3548.19 0.42 3130.55 3533.28 3598.20 3559.61 3.54 1.46 19.40 124.49 6561.65 FTSE Middle East and Africa All Cap 258 624.70 -2.4 -7.8 -20.4 1013.16
-18.2 3.7 Electricity 111 297.84 -0.9 -0.9 -1.5 598.19 1.4 3.6 Total Equity Turnover (£m) 6025.09 3642.88 7485.93 7485.93 7485.93 4475.75
Life Insurance/Assurance (7) 7276.17 -0.75 6419.73 7330.79 7361.27 8700.35 4.84 1.47 14.06 345.84 7538.81 FTSE Global wi UNITED KINGDOM All Cap In 318 319.04 -1.4 -8.6 -13.7 562.76
-10.7 4.2 Gas Water & Multiutilities 55 272.05 -1.0 -1.0 -6.4 570.45 -3.3 3.9 Total Mkt Bargains 1071482.00 978763.00 1072312.00 1072312.00 1072312.00 1018041.00
Real Estate Investment & Services (18) 2455.37 0.77 2166.36 2436.54 2481.46 2646.47 2.77 2.80 12.92 53.82 6778.46 FTSE Global wi USA All Cap 1869 671.47 -0.6 -7.0 2.0 908.51
3.5 1.9 Financials 730 230.27 -1.1 -1.1 -10.9 390.92 -8.5 3.4 Total Shares Traded (m) 3868.00 3639.00 3928.00 3928.00 3928.00 3696.00
Real Estate Investment Trusts (39) 2619.93 0.66 2311.56 2602.63 2652.36 2633.40 4.30 1.85 12.59 100.32 3460.00 FTSE Europe All Cap 1489 395.14 -1.7 -10.2 -13.4 665.49
-10.7 3.7 Banks 244 196.89 -1.1 -1.1 -15.1 361.51 -12.4 4.1 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (39) 8086.16 -0.17 7134.39 8100.25 8264.23 9199.97 4.05 2.16 11.42 262.87 9690.97 FTSE Eurozone All Cap 688 383.49 -2.0 -11.9 -14.6 647.93
-12.2 3.4 Nonlife Insurance 72 262.66 -1.3 -1.3 -3.5 392.30 -1.4 2.4 (c) Market closed.
Equity Investment Instruments (181) 9776.99 0.39 8626.20 9738.89 9924.67 9849.92 2.60 3.62 10.63 205.01 5525.57 FTSE RAFI All World 3000 3168 6548.33 -1.2 -7.6 3.2 Life Insurance
-7.5 8987.88
-5.1 55 215.59 -1.6 -1.6 -14.6 358.84 -12.1 3.4
Non Financials (331) 4561.18 0.24 4024.31 4550.21 4610.91 4787.01 4.10 2.12 11.50 156.11 7102.74 FTSE RAFI US 1000 1032 11423.50 -0.6 -6.5 -1.0 15439.22
0.9 2.5 Financial Services 165 294.93 -1.2 -1.2 -4.0 415.90 -2.6 2.1
Technology (15) 1680.09 -1.99 1482.33 1714.20 1761.40 2224.84 3.14 1.55 20.50 48.47 2235.90 FTSE EDHEC-Risk Efficient All-World 3211 381.38 -1.3 -7.9 -6.0 546.30
-4.2 2.5 Technology 207 280.40 -0.9 -0.9 4.5 349.79 5.7 1.4 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1868.55 -2.00 1648.61 1906.78 1961.82 2563.67 3.18 1.57 20.01 55.72 2629.04 FTSE EDHEC-Risk Efficient Developed Europe 595 301.46 -2.0 -10.5 -10.9 475.67
-8.6 3.1 Software & Computer Services 106 478.94 -1.0 -1.0 3.4 564.81 4.1 0.8 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) 2486.86 -1.64 2194.15 2528.44 2519.64 1872.39 2.29 0.94 46.58 39.43 2982.50 Oil & Gas 147 381.21 -2.4 -7.3 -2.6 643.04
0.2 3.7 Technology Hardware & Equipment 101 213.53 -0.7 -0.7 5.8 279.72 7.6 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 7 85.16 -3.2 -3.2 -11.6 117.61 -10.0 2.2 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 & Services 116 307.47 -2.0 -2.0 -16.5 531.38 -14.3 3.3 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6978.68 6985.18 6974.62 7002.86 7017.24 7038.85 7036.09 7012.17 6990.86 7049.63 6956.53 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 250 18402.91 18448.62 18402.29 18456.63 18499.41 18572.67 18607.95 18566.08 18482.33 18617.94 18386.48 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
(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,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5467.33 5484.62 5477.57 5476.06 5475.24 5479.98 5483.28 5485.87 5477.73 5486.78 5467.20
FTSE All-Share 3822.25 3827.04 3820.70 3834.90 3842.63 3854.67 3854.67 3842.82 3830.47 3859.90 3813.10 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 100 Day's high:12:06:00 Day's Low15:10:00 FTSE 100 2010/11 High: 7877.45(22/05/2018) Low: 6888.69(26/03/2018) 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
Time of FTSE All-Share Day's high:12:06:00 Day's Low15:10:00 FTSE 100 2010/11 High: 4324.41(22/05/2018) Low: 3809.97(23/10/2018) 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 Barclays 3rd 16063.000 16054.000 3120.000 3448.000 9.400 3.000L 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- Calculus VCT Int 0.217L 0.216L 1.630L 2.460L 0.00000 0.00000 - 0.000 0.000 10/23 100.00 AJOT Avi Japan Opportunity Trust PLC 101.50 0.50 103.00 100.53 8120.0
There are currently no rights offers by any companies listed on the LSE. HSBC Holdings 3rd 58103.000 62242.000 16218.000 18629.000 0.580 0.790 9.04500 9.08900 Dec 12 40.100 26.900 10/19 10.00 SSON Smithson Investment Trust PLC 1038.10 6.80 1047.00 1010.00 85384.7
JPMorgan Global Emerging Markets IT Pre 26.987 56.708 8.420 18.850 2.00000 1.90000 Oct 26 3.000 2.900 10/19 100.00 AIM SWC Summerway Capital PLC 102.50 - 102.50 102.50 628.3
Metro Bank 3rd 294.800 209.200 39.200 13.200 33.660 10.970 0.00000 0.00000 - 0.000 0.000 10/10 0.00 GTE Gran Tierra Energy Inc 250.00 - 0.00 0.00 97793.8
Oxford Technology 2 Venture Capital Trust Int 0.068L 0.112 1.300L 1.700 0.00000 8.00000 - 0.000 8.000 10/01 100.00 MMIT Mobius Investment Trust PLC 97.00 -1.00 101.30 96.00 9700.0
Oxford Technology 3 Venture Capital Trust Int 0.047L 0.209 0.700L 3.100 0.00000 0.00000 - 0.000 0.000 10/01 20.00 TRR Trident Resources PLC 21.25 0.25 21.45 20.00 467.5
Oxford Technology 4 Venture Capital Trust Int 0.665 0.319 5.700 2.800 3.00000 0.00000 Aug 31 3.000 0.000
Oxford Technology Venture Capital Trust Int 0.075L 0.020 1.400L 0.400L 0.00000 0.00000 - 0.000 0.000
Pearson Int 2142.000 2416.000 28.000 82.000 4.500 7.500 15.00000 14.00000 Sep 14 42.848 39.700
ProVen Growth & Income VCT Int 5.921 1.519 4.100 1.100 0.00000 0.00000 - 0.000 0.000
ProVen VCT Int 11.953 1.935L 11.800 2.000L 0.00000 0.00000 - 0.000 0.000
U and I Group Int 54.000 42.100 4.200L 3.300L 3.500L 3.200L 2.40000 2.40000 Nov 30 5.900 5.900

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Thursday 25 October 2018 ★ FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

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22 ★ FINANCIAL TIMES Thursday 25 October 2018

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Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence ICG 922.50 1.50 1226 914.50 3.09 10.39 1070.0 Industrial Engineering AnGoldA R 143.90 -1.85 150.85 100.21 0.58 203.20 1103.9 Shaftbry 900.50 7.50 1055 864.50 1.78 7.98 289.4 Kin and Carta 87.10 -4.90 110.00 66.00 2.24 -2.23 159.9
Avon Rubber 1200 -25.00 1485 935.00 1.03 16.30 116.6 Investec 469.20 1.40 649.40 451.20 5.01 9.42 1978.8 Bodycote♦ 744.50 -8.50 1077 741.00 2.34 13.61 477.9 Antofagasta 727.20 -29.40 1171.5 721.40 1.05 14.48 4768.1 Town Ctr 256.00 1.00 317.00 250.00 4.49 8.21 25.9 MngCnslt 1.80 - 2.70 0.89 - -0.53 0.0
BAE Sys♦ 536.40 0.20 680.20 528.00 4.06 22.73 13937.7 Jupiter 325.30 -3.90 638.80 325.30 5.26 9.48 1931.8 Castings 390.50 13.00 475.00 366.00 3.58 17.39 1.0 Barrick C$ 17.29 -0.15 20.37 12.54 0.88 -59.08 1559.7 TritaxBBOX♦ 145.30 0.60 158.00 139.40 4.46 7.16 3861.5 MearsGp♦ 351.00 -1.00 512.00 300.00 3.42 16.97 293.1
Chemring 187.40 7.00 239.50 163.00 1.23 170.36 197.9 Liontrust 611.00 1.00 694.00 460.30 2.62 36.41 17.9 Goodwin 2520 10.00 2940 1650 1.68 21.34 1.2 BHP Billiton 1490.6 -30.60 1803.6 1314.5 4.97 15.79 9138.2 Wkspace 943.00 -1.00 1176 850.00 2.45 9.07 167.7 MenziesJ♦ 508.00 - 718.00 505.00 4.04 17.28 87.2
Meggitt 508.80 2.60 583.80 415.50 3.12 13.90 1722.2 LSE Gp 4235 15.00 4814 3612 1.22 24.85 1363.9 Hill&Sm 902.50 -3.00 1538 710.00 3.32 14.17 174.7 BisichMg 85.00 -5.00 125.00 68.25 4.71 3.22 3.2 Real Estate Inv & Services Mitie 144.90 -0.10 252.50 134.30 0.92 -19.07 736.1
RollsRoyceX 840.00 -1.40 1104.5 800.20 1.39 7.45 4892.4 Man 147.90 2.95 219.20 135.95 5.46 12.13 11254.4 IMI 920.50 2.00 1453 908.00 4.28 17.11 1153.1 EVRAZ 521.40 10.00 589.60 265.70 10.58 5.74 2760.7 Cap&Count 244.00 2.70 320.70 234.80 0.61 -162.672054.3 Renewi 53.90 -0.30 108.80 52.10 5.66 -8.98 850.5
Senior 267.40 5.40 336.60 249.50 2.60 17.34 1187.0 NB GFRIF♦ 92.10 1.00 95.55 91.00 3.62 -21.90 900.8 MelroseInd 155.30 -2.10 248.80 153.35 2.70 -12.83 23854.7 Fresnillo 938.00 -39.20 1461 755.80 3.26 18.94 4404.5 CLS 207.00 6.00 255.00 197.40 3.07 7.11 119.4 Rentokil 284.80 -1.10 356.40 257.40 1.36 28.28 6036.0
UltraElc 1383 28.00 1881 1138 3.59 28.46 82.2 NEX Group 1091 16.00 1096 556.00 2.80 37.62 941.2 Renold 30.90 -1.30 55.00 22.00 - -30.90 221.9 GlencoreX 297.90 -1.85 416.90 284.40 3.46 9.36 44960.8 Daejan♦ 5880 40.00 6540 5500 1.67 4.72 1.6 Ricardo 734.00 6.00 1085 692.00 2.67 20.91 16.3
Paragon 415.00 -5.60 558.50 414.00 3.78 9.22 358.8 RHIM 3866 -34.00 5350 3200 - -96.78 111.5 Harmony R 29.82 -0.19 31.50 19.00 2.88 -35.23 1994.3 Grainger 276.00 2.00 323.20 266.40 1.76 14.12 534.3 RbrtWlts 650.00 -12.00 814.00 532.00 1.85 14.98 230.6
Automobiles & Parts Providnt 496.70 -11.10 804.87 413.70 - -5.50 1150.1 Rotork 288.60 2.90 363.20 250.70 1.87 42.44 1543.9 KAZ Minerals PLC 447.00 -2.10 1102.5 421.50 - 4.88 3226.6 Harworth Grp 118.50 0.50 133.00 104.00 0.70 9.79 74.5 RPS 207.00 7.00 307.50 197.40 4.77 -30.76 108.6
FordMtr $X♦ 8.39 -0.20 13.48 8.19 6.99 5.08 17302.9 RathbnBr 2232 2.00 2810 2208 2.73 18.88 71.9 Severfd 66.00 - 89.40 62.00 3.79 11.06 87.9 Lonmin 54.65 -1.30 109.50 36.00 - -0.25 334.7 Helical 309.50 -3.00 399.00 290.75 2.81 14.00 76.9 SIG♦ 113.90 0.30 180.20 110.40 3.29 -27.78 1430.4
Record 29.95 -0.35 53.20 29.10 7.76 10.05 111.1 Tex 110.50 - 140.70 100.00 7.69 14.54 0.5 Petropvlsk 6.52 - 8.75 5.15 - -12.01 1022.0 HK Land $ 5.98 -0.04 7.54 5.91 3.31 4.00 1082.7 Vp 1037.5 -7.50 1230 680.00 2.20 17.02 9.8
Banks
S&U 2000 -10.00 2790 1980 5.25 9.14 5.3 Trifast 210.00 -3.00 277.00 200.00 1.71 17.21 74.1 PolymtIntl 726.00 -12.40 945.00 577.80 4.51 10.31 1270.7 Lon&Assc 29.00 -0.50 31.00 18.00 0.57 2.83 19.3
ANZ A$X 25.45 0.16 30.80 25.22 6.27 10.53 4335.6
Schroder 2608 -40.00 3784 2608 4.33 11.90 725.3 RndgldRs 6412 -122.00 7545 4607 2.45 34.44 477.1
Tech - Hardware
BcoSant♦ 351.25 -7.75 534.00 351.25 5.54 10.26 4302.9 Vitec 1235 -35.00 1430 1030 2.47 39.71 242.8 MacauPrp 190.00 -0.20 206.00 171.00 - 2.24 49.5
..N/V 2130 10.00 2730 2065 1.60 9.72 35.0 Rio TintoX 3599.5 -29.00 4541 3399 6.05 6.38 4138.8 SpirentCM 118.80 -2.20 139.20 89.50 2.59 29.99 1292.1
BnkGeorgia 1498.6 3.40 3884 1483.57 - 4.95 124.3 Weir♦ 1412 -1.00 2333 1354.5 3.12 19.57 2476.5 Mntview 10200 - 12070 10000 2.94 13.31 0.0
Strd Life Aber 258.35 -2.30 508.57 255.60 8.24 8.91 9989.1 Sirius Min 22.68 -1.04 39.78 21.00 - -70.88 32519.1 Palace Cap 312.00 12.00 366.00 208.00 7.61 8.72 12.6 Tech - Software & Services
BankIre Grp € 6.13 -0.14 8.25 6.00 1.88 10.35 351.6 Industrial General
TP ICAP♦ 268.20 -2.90 560.60 245.80 6.28 34.83 865.8 Troy Res A$ 0.11 0.01 0.18 0.08 - -4.90 73.1 Raven Property Group Ltd 44.70 -0.60 52.63 36.50 - 89.40 325.6 Computcnt 1244 -12.00 1632 954.00 2.10 17.82 163.3
BkNvaS C$X♦ 69.82 -0.94 85.50 69.59 4.54 10.53 993.2 Coats Group 75.30 1.30 90.00 69.00 1.45 19.01 4157.7
WlkrCrip 35.00 - 50.00 31.25 5.34 20.00 2.0 RavenR CNV 119.50 - 125.01 113.00 - - 0.4 MicroFoc 1268 -48.50 2749 782.20 5.75 9.11 2241.1
BarclaysX 170.70 4.94 220.10 161.24 1.76 -426.75 78197.1
JardnMt $X 58.00 -0.27 68.11 57.40 2.68 13.79 247.3 Oil & Gas
CanImp C$X♦ 114.19 -0.74 125.21 110.00 4.53 10.17 505.8 Food & Beverages BPX 532.90 -0.30 603.20 452.50 5.64 19.88 39087.4 RavenR Prf 148.00 - 156.00 120.00 - 165.73 47.5 NCC Grp 192.30 3.30 236.00 175.60 2.42 43.70 154.9
Jard Str $X 32.55 -0.34 44.69 32.51 0.97 11.48 154.8 RavenR Wrt 21.00 - 27.55 19.00 - - 0.6
HSBCX♦ 600.80 -5.90 798.60 600.50 6.38 16.19 26419.4 AngloEst 582.00 2.00 850.00 550.00 0.52 10.08 2.7 CairnEng 186.50 1.60 270.40 179.20 - -4.58 2851.6 RM 186.50 -2.00 244.00 156.00 3.54 10.48 4.8
Macfrlne 92.00 - 114.00 68.60 2.28 16.73 51.6 Safestre 522.00 -1.00 585.00 435.60 2.68 10.55 555.8
LlydsBkgX 56.66 0.27 72.68 55.97 5.38 10.90 184758.6 AscBrFdX 2334 50.00 3387 2186 1.76 17.68 1621.4 ExxonMb $X 79.46 -0.38 89.30 72.16 3.85 16.55 3062.3 Sage 525.60 -9.60 825.20 516.80 2.93 22.14 3494.4
RPC 741.80 5.20 1032 642.40 3.46 12.10 2085.2 Savills 725.00 7.50 1046 709.00 2.08 13.13 275.6
PermTSB € 1.90 -0.03 2.44 1.67 - 17.72 128.3 Barr(AG)♦ 742.00 7.00 762.00 599.00 2.10 23.53 67.5 Gazprom PJSC ADR $ 4.77 0.04 6.46 4.10 5.53 4.71 11981.4 SDL 456.00 3.00 560.00 333.00 1.36 24.28 102.3
Smith DS♦ 367.70 3.80 516.20 274.10 3.92 15.93 11216.4 SchroderRE 60.20 1.00 67.30 57.80 4.12 9.26 311.2
RylBkC C$X♦ 95.75 -2.69 108.52 95.53 3.80 12.09 1566.9 Britvic 777.00 12.50 844.00 658.00 3.41 19.33 795.7 GeoPark $ 16.23 0.20 21.88 8.34 - -124.44 63.9 TriadGp 66.00 - 80.00 50.40 1.52 6.59 11.6
Smiths♦ 1283 3.50 1810 1257 3.39 18.57 3234.5 SiriusRE 56.80 -0.60 68.60 51.60 4.77 7.49 1020.2
RBSX 230.70 -2.10 304.20 230.50 - 39.78 15080.1 CarrsGroup 151.50 -2.50 165.00 118.00 2.64 15.00 7.0 SmurfKap♦ 2424 -98.00 3306 2188 3.20 12.14 532.9 GulfKeyst 221.00 1.50 303.50 89.25 - 16.75 676.2 Telecommunications
Sberbank of Russia PJSC ADR - - - - - - - Coca-Cola HBC 2309 -12.00 2817 2176 2.07 21.23 516.8 HellenPet € 7.05 0.06 8.88 6.60 5.69 4.92 27.4 Smart(J) 107.50 - 114.70 105.00 2.90 12.24 0.3
Vesuvius 526.00 -4.50 663.00 514.50 3.42 23.38 464.9 StModwen 369.20 2.00 431.20 358.00 1.70 15.71 523.9 BTX 250.20 9.75 278.50 201.25 6.16 12.26 64849.1
STB 1485 -22.50 2120 1380 5.32 11.96 10.2 Cranswk 2918 62.00 3502 2724 1.58 21.28 58.0 Hunting 664.50 -6.50 934.50 467.00 - 47.42 881.3
U+I 211.00 4.00 253.00 176.00 2.80 6.55 245.4 Inmarsat 459.00 0.60 646.00 334.30 5.50 202.02 1526.7
StandChX 519.80 -9.20 122709.4 519.00 1.60 20.01 5973.8 Dairy Cr 459.80 5.20 620.00 441.20 4.92 4.35 214.4 Industrial Transportation ImpOil C$X 42.28 -0.49 44.91 33.43 1.53 38.34 420.2
Unite Gp♦ 837.00 -3.00 919.50 689.00 2.71 7.56 642.7 KCOM Gp 93.00 3.20 111.25 85.30 6.45 17.45 115.1
9 Devro 178.00 -4.80 247.00 178.60 4.94 20.94 538.3 BBA Aviat♦ 243.40 0.20 370.40 242.80 3.02 27.33 1475.6 OphirEgy 43.10 -0.30 76.60 34.75 - -1.00 2957.1
Urban&C 282.00 4.00 348.00 263.00 1.13 9.18 210.2 TalkTalk 120.70 1.80 216.55 88.60 6.21 -14.90 711.9
..7.375%Pf 118.25 -3.75 143.25 121.00 6.24 - 5.0 DiageoX 2693 20.00 2885 2345.5 2.35 22.56 5590.8 Braemar 235.00 5.00 314.00 215.00 4.26 -29.34 3.7 PJSC Lukoil ADR $ 76.24 3.59 76.56 0.96 1.74 7.02 1192.3 TelePlus 1180 10.00 1292 995.00 4.15 30.57 60.5
..8.25%Pf 125.75 -0.35 158.90 125.10 6.56 - 16.3 Grncore 186.05 -3.05 233.70 120.00 2.94 372.10 2733.7 Clarkson 2495 - 3475 1970 2.93 26.10 29.4 PremOil 105.50 -2.00 146.90 62.00 - -2.83 12445.2 Retailers Vodafone GpX 146.42 0.18 239.65 145.24 8.97 10.56 61378.5
TntoDom C$X♦ 73.13 -0.55 80.05 69.21 3.42 12.71 1550.2 HiltonFd 916.00 2.00 1020 760.00 2.07 27.34 572.4 Eurotunnl € 11.22 0.24 12.49 10.05 2.68 53.32 1611.6 RylDShlAX 2418.5 -10.00 2755 2168.5 5.88 13.53 4202.4 AA♦ 98.62 0.98 179.30 69.92 5.07 8.58 2001.8
Westpc A$X 26.50 0.17 33.62 25.91 7.08 11.24 4631.4 Kerry €♦ 91.05 1.35 99.45 76.80 0.69 27.21 48.0 Fisher J♦ 1650 -12.00 1940 1340 1.74 19.12 96.2 ..B 2468 -14.50 2844.5 2194 5.76 13.81 4035.3 AO World 135.00 7.80 180.20 98.00 - -46.08 106.2 Tobacco
Nestle SFrX 83.24 0.46 86.40 72.92 2.77 31.84 5563.5 OceanWil 1055 - 1310 1001.5 4.39 6.44 7.4 Schlmbrg $X 54.29 -0.80 80.35 54.05 3.60 -102.80 4937.0 AshleyL 4.14 0.01 8.50 3.65 - -21.76 25.1 BrAmTobX 3527.5 23.00 5108 3171 5.60 1.93 4814.6
Basic Resource (Ex Mining) RoyalMail 363.00 8.70 632.60 321.80 6.42 14.12 3947.0
PremFds 37.95 0.35 46.86 35.80 - 44.39 946.8 Seplat 123.00 - 160.00 97.50 3.04 2.75 125.9 Caffyns 415.00 -10.00 479.00 371.00 5.42 10.89 1.1 Imperial BrX 2645.5 -2.00 3204.5 2298 6.45 20.64 2695.3
Ferrexpo 217.30 0.90 321.50 138.00 2.24 5.12 5274.2
PureCircle 339.50 -0.50 517.00 275.50 - 206.89 28.4 Soco Int 86.50 -0.50 129.80 80.00 6.11 -2.49 256.4 Dairy Fm $ 8.78 0.06 9.68 7.67 2.34 29.23 253.1
Mondi 1745 3.00 2250 1684 3.10 14.21 2199.0 Insurance Travel & Leisure
REA 265.00 -4.00 360.00 260.00 - -8.04 1.5 TrnCan C$X♦ 51.13 -0.12 65.18 50.28 4.98 15.64 854.3 Debenhams 8.52 -0.13 47.30 8.10 40.20 -9.47 7691.9
Admiral 1977.5 12.00 2138 1794.5 2.68 16.90 622.7 888 Hldg♦ 179.30 4.10 326.60 175.00 4.18 10.12 1346.0
Chemicals StckSpirit 198.80 1.80 320.00 184.00 3.60 34.42 134.1
AvivaX 413.90 -7.10 554.60 412.80 6.62 14.94 17996.2
Tullow Oil PLC 220.30 3.30 279.30 162.20 - 16.81 9364.7 Dignity♦ 1002 5.00 2475 735.50 2.43 9.57 78.9
Tate&Lyl 663.20 4.00 713.50 522.60 4.25 11.82 1332.0 Wood Group (John) PLC 706.80 25.20 801.20 515.00 1.19 -56.90 3491.8 AirPrtnr 106.50 3.75 153.00 65.00 4.98 16.14 43.9
Carclo 82.30 2.40 149.00 62.40 - 7.09 160.2 Beazley 526.00 3.00 621.50 478.20 2.18 79.82 1774.5 DixonsCar 160.15 1.85 235.70 145.72 - 7.55 2435.4
TongtHu R 52.97 -0.22 120.43 48.48 6.37 7.62 174.9 Carnival 4197 -15.00 5100 4184 3.50 12.25 1196.5
Croda 4644 27.00 5330 3858 1.74 25.17 614.7 Chesnar 355.00 6.50 424.50 334.75 5.65 9.99 36.4 Pharmaceuticals & Biotech Dunelm 584.50 6.50 754.50 460.60 4.53 16.15 200.9
Unilever 4173.5 43.00 4503.5 3678.5 3.09 21.75 3076.2 Cineworld 278.00 -0.60 673.00 96.27 2.06 29.13 13389.9
Elemntis 197.10 8.70 294.50 186.50 3.04 12.47 1766.6 Direct Line 329.40 4.40 397.00 307.80 6.19 11.68 5983.9 Findel 255.00 -5.00 312.00 150.00 - 11.24 44.3
..NV € 48.10 0.90 50.20 42.10 3.05 22.12 12.7 AstraZenecaX 5931 - 6122 4544.5 3.51 37.05 1917.2 CompassX 1505 22.00 1722 1396.5 2.26 21.05 2903.6
Johnsn Mtthey 2858 2.00 3873 2845 2.67 18.44 748.3 Eccles prf 143.50 - 160.94 110.00 6.01 - 14.2 Halfords 303.00 5.20 391.00 296.20 5.83 11.02 352.8
BTG 536.00 17.50 784.00 467.40 - 137.44 934.1 Dalata Hotel 489.00 - 650.00 468.00 - 14.59 2.3
Victrex 2482 -18.00 3434 2368 2.17 18.48 407.8 Health Care Equip & Services Hansard♦ 47.00 -1.50 94.00 46.10 15.11 9.59 8.0 Inchcape 491.00 4.40 826.00 484.00 5.46 8.42 1614.6
CathayIn 8.25 -0.50 10.00 3.00 - -2.85 60.0 easyJet 1141 8.50 1808.5 1061.5 3.58 10.19 2409.9
Hiscox 1564 -6.00 1725 1283 1.85 93.59 633.2 JDSportsF 381.40 -4.10 539.40 311.60 0.43 14.79 1217.0
Construction & Materials Bioquell 460.00 20.00 573.50 235.00 - 35.66 17.0 Dechra 2204 72.00 3180 1956 1.03 59.50 394.9
Just Eat PLC 590.20 -5.60 906.00 582.40 - -38.83 2412.1
EI Group 162.20 0.40 175.00 114.20 - 9.77 847.7
Alumasc♦ 128.50 - 175.50 118.40 5.64 10.80 3.1 ConstMed♦ 1186 -24.00 1294 1040 1.74 36.27 8.0 JardineL 1886 2.00 1902 1186 1.80 36.98 523.0 Genus 2166 -8.00 2998 2112 1.12 31.53 50.1 FirstGrp 85.30 0.10 119.60 76.15 - -3.47 2957.9
ConvaTec 147.20 0.30 41408.93 140.00 2.94 16.20 23879.0 Lancashire 576.50 4.00 768.50 505.00 1.99 -23.78 498.2 GlaxoSmhX 1552.6 9.20 1625 1236.4 5.15 46.55 10487.3 Kingfisher♦ 243.50 1.10 366.00 238.10 4.44 13.23 4755.7 Fuller A 960.00 40.00 1024.24 896.00 1.99 14.89 6.0
Boot(H) 261.00 -8.00 350.00 253.00 3.07 7.61 6.6 Marks&Sp 285.60 1.40 349.40 262.10 6.55 178.50 4507.0
CRH 2081 -10.00 2894 2073 2.89 10.83 3292.3 GNStre kr 272.60 -1.30 346.60 190.55 0.46 32.50 351.2 Leg&Gen 240.60 - 287.60 236.00 6.38 8.81 25544.0 HikmaPhm 1771 15.50 2033 814.20 1.43 -6.96 368.7 Go-Ahead 1522 15.00 2004 1310 6.71 7.36 131.9
Mediclinic 347.50 -11.00 712.40 344.20 2.27 -5.21 2073.7 Old Mut 119.76 -0.90 176.62 106.16 - 10.58 4172.8 Oxfd Bio 683.50 -16.50 1062.6 415.06 - -446.73 97.6 Morrison (Wm)♦■ 250.50 1.80 270.50 203.30 2.43 24.73 7875.2 GreeneKg 484.30 4.30 652.20 454.00 6.86 9.26 551.8
GalfrdT 848.50 -2.00 1349 772.50 9.76 7.04 249.8 MossBros♦ 33.00 - 97.00 29.00 12.12 97.06 2.7
KierGp♦ 858.00 -6.50 1166 851.00 7.93 9.55 193.5 NMC Health 3214 -16.00 4376 2661 0.40 41.04 490.4 PhoenixGrp 584.00 -5.50 719.50 491.79 7.73 56.96 1134.5 RichterG $ 18.70 -0.30 27.00 16.30 1.27 53.37 0.0 IntCon Htels Gp 3948 -27.00 5050 3877 1.95 17.53 863.1
Smith & Nephew♦ 1275.5 7.00 1442 1173 2.09 20.56 2936.1 PrudntlX 1495 -10.00 1992.5 1478.5 3.14 17.32 5533.4 ShireX 4485 19.00 4662 2940.5 0.59 11.21 2720.9 Next 5120 26.00 6224 4187 3.09 12.08 331.8 Intl Cons Air 565.80 4.40 727.00 547.00 4.22 4.88 5832.2
Kingsp € 37.88 -0.94 44.00 31.81 0.98 23.09 106.5 Ocado 801.20 28.40 1163 235.80 - -309.34 2136.1
LowBonr 31.90 0.90 74.00 30.00 9.56 -2.69 441.2 UDGHlthC 610.50 0.50 963.00 602.00 1.55 51.10 469.3 RSA Ins 543.80 0.20 683.40 537.80 3.60 18.50 4071.6 VecturGp 72.70 3.40 127.20 67.20 - -6.92 662.8 IrishCtl € 5.00 - 5.95 4.90 2.44 13.71 0.1
SagicFin♦ 77.50 -5.00 98.00 70.00 4.89 4.87 1.1 Photo-Me♦ 114.20 14.60 194.00 98.10 6.70 10.77 2430.0 JPJ Grp 657.00 4.00 1048 634.00 - -9.95 244.8
Marshlls♦ 415.00 -0.60 502.00 380.40 2.46 18.40 252.2 House, Leisure & Pers Goods Real Estate Saga♦ 128.10 -1.90 194.30 108.00 7.03 9.70 5152.8
MorgSdl♦ 1164 14.00 1554 1078 3.87 9.25 31.5 StJmsPl 970.20 -10.00 1279.5 970.20 4.42 33.80 2363.3 MandarO $ 1.88 -0.02 2.73 1.70 1.54 38.99 284.2
BarrttDev♦■ 496.30 -1.30 705.50 479.10 5.18 7.53 3422.5 REITs Sainsbury (J) 305.10 0.20 341.80 223.60 3.18 24.02 6022.1 Marstons 97.20 0.95 121.30 89.20 7.72 14.09 1090.9
Norcros 209.00 1.00 234.00 147.00 3.54 14.82 144.9 Media TescoX♦ 215.30 1.00 266.80 175.20 1.39 19.02 23641.3
Bellway 2765 2.00 3805 2718 4.41 6.97 560.0 Assura 54.40 0.60 64.20 52.50 4.61 14.70 1377.0 Merlin Ents 311.40 -0.60 415.70 310.10 2.38 15.49 2653.7
Tyman 290.00 13.00 387.00 276.50 3.88 17.93 623.5 4imprint 1925 -10.00 2280 1555 2.29 23.39 22.9
Berkeley 3284 10.00 4338 3225 3.30 5.97 613.9 BigYellw 865.00 -4.00 997.50 739.00 3.40 10.25 164.1 Natl Exp 403.00 -4.00 426.60 337.20 3.35 15.09 770.0
Auto Trader Group PLC 395.20 6.60 471.40 313.00 1.37 22.33 7478.1 Support Services
Electronic & Electrical Equip BovisHme♦■ 928.60 -3.40 1311.5 917.80 5.12 11.89 436.2 BritLand♦ 577.60 5.80 703.00 554.20 5.17 11.91 3166.2 Aggreko 818.20 8.60 994.50 636.80 3.31 19.31 592.6 Paddy Pwr Btfr 6330 95.00 9180 6000 3.16 24.66 193.1
Dialight 370.00 -3.00 730.00 355.00 - 119.35 15.1 Burberry Gp 1672 1.50 2338 1481.5 2.36 24.44 2379.3 Centaur 39.50 0.10 56.00 35.20 7.59 197.50 2.5 Cap&Reg♦ 41.60 2.60 59.50 37.15 8.75 17.63 290.2 AshtdGp 1815.5 -2.50 2461 1807 1.56 8.76 2890.2 PPHE Htl 1590 - 1650 1030 1.51 17.67 3.2
Discoverie PLC 384.00 -4.00 456.00 295.00 2.27 24.30 73.2 Cairn Homes € 1.44 0.05 2.00 1.39 - 90.27 211.8 DlyMailA 688.50 1.00 781.00 500.00 3.30 -26.58 555.3 Civitas SH 110.00 -0.50 114.00 95.60 - - 264.9 Babcock 598.00 6.40 868.00 579.60 4.77 8.99 4141.2 Restaurt 288.40 4.80 334.60 229.20 6.03 18.21 210.5
Halma 1250 13.00 1507 1136 1.13 30.72 1464.9 CtrySide 270.00 -0.60 387.00 267.80 3.11 9.57 1536.0 HaynesPb 196.50 - 247.94 188.00 3.82 20.05 0.1 Countrywd 10.86 - 63.33 10.00 - -0.11 612.6 Bunzl 2198 8.00 2442 1918.5 2.09 22.25 1810.8 Ryanair Holdings PLC 345.80 6.00 544.00 338.20 5.99 230.53 738.5
Morgan Ad 268.80 -2.20 370.00 266.00 4.09 13.64 577.6 CrestNic 326.00 2.00 588.00 275.00 10.12 5.05 1867.1 Informa 723.40 12.00 869.60 657.40 2.83 21.28 2126.7 DrwntLdn 2964 18.00 3241 2608 2.02 10.98 180.1 Capita 121.10 2.85 534.00 115.45 5.59 -2.75 3544.1 Stagech 147.80 3.60 188.20 124.30 8.05 12.11 737.1
OxfordIn 942.00 6.00 1116 676.00 1.38 27.62 27.6 GamesWk♦ 3110 65.00 4060 1857 3.86 17.06 105.1 ITE Grp 58.30 2.00 93.10 44.09 4.25 -21.39 1163.0 Great Portland 698.20 5.60 805.04 650.90 1.73 38.36 535.2 Comnsis 71.80 1.20 73.00 47.00 3.70 13.40 4451.5 ThomasCook 43.52 3.42 150.00 39.24 1.38 27.20 7928.3
Renishaw 3804 134.00 5820 3614 1.41 20.92 219.8 Gleeson 670.00 -10.00 830.00 639.50 3.58 12.89 20.7 ITV 151.15 -2.10 183.05 141.00 5.16 14.53 13060.0 Green Reit € 1.50 0.00 1.76 1.43 3.36 7.44 63.0 DCC 6360 35.00 7760 6150 1.82 24.60 289.9 TUI 1282 -14.00 1816 1280 4.48 10.49 906.5
Spectris♦ 1966.5 -7.00 2957 1933 2.87 8.07 510.1 Headlam 456.00 -4.00 610.00 408.50 5.44 11.84 541.4 Pearson 888.60 0.80 973.20 651.00 1.91 11.68 4691.4 Hammersn 427.00 1.20 578.20 422.70 5.97 21.66 2435.2 DeLaRue 479.00 7.50 704.50 446.00 5.22 5.16 84.2 Whitbrd 4342 -54.00 4800 3499.9 2.24 18.16 1681.8
TT Elect 215.00 -16.50 282.00 197.00 2.70 18.86 157.7 McBride 135.00 -5.00 235.00 108.80 3.26 12.98 190.9 RELX NV £ 17.25 0.24 19.65 15.86 2.30 21.01 2292.2 Hansteen♦ 96.15 0.35 147.90 92.55 6.34 6.54 410.0 Diploma 1206 -19.00 1483 1027 1.91 27.41 109.9 Willim H 199.05 -4.85 345.00 199.05 6.63 -1.77 7400.2
XP Power 2590 -10.00 3780 2510 3.05 15.74 7.2 McCarthy&S 130.50 1.60 172.20 96.05 4.14 10.88 1107.7 RELXX 1525.5 19.50 1784 1399 2.58 18.58 6007.8 Hibernia € 1.39 0.01 1.57 1.36 1.82 9.11 779.3
Persimn 2200 6.00 2913 2153 10.68 8.53 954.0 Rightmove PLC♦ 438.05 7.15 539.60 387.30 1.32 26.33 2783.4 Elctrcmp 588.00 -6.00 779.20 562.40 2.13 17.50 1161.2 Utilities
Intu♦ 196.15 1.00 256.60 147.85 7.14 -6.52 3877.9 Essentra PLC♦ 345.80 6.00 544.00 338.20 5.99 230.53 738.5
Financial General Philips € 31.33 -0.09 40.01 29.25 2.56 36.78 5885.5 SkyX 1726 -8.00 1740 893.42 - 36.49 1150.2 LandSecs 836.60 4.00 1017 802.40 5.03 36.29 1481.4 Centrica♦ 149.05 1.00 175.90 123.10 8.05 15.86 24141.4
3i 832.40 -11.60 1038 832.20 3.18 5.51 2267.2 PZCusns 215.80 -1.20 336.30 199.70 3.84 18.91 304.5 STV Grp♦ 380.00 11.00 458.00 295.40 4.47 135.71 33.5 Experian 1766.5 16.50 1994 1494.5 1.69 27.17 3838.2 Drax 403.60 1.80 423.40 218.00 3.05 -23.74 2491.4
LondonMtrc 181.90 0.90 18981.57 173.40 4.21 6.76 717.4 Ferguson 5215 -97.00 6601 5203 2.36 20.13 764.1
BrewDlph 315.00 8.20 399.40 301.98 4.25 19.69 314.0 ReckittBX 6729 142.00 7407.22 5255 2.44 13.79 1503.9 ThmReut C$X 61.15 -0.23 61.78 46.69 2.87 22.67 338.0 McKaySec 280.00 16.00 289.00 212.00 3.25 6.10 24.5 Natl GridX 839.10 8.50 936.10 733.00 5.31 7.84 9579.8
CtyLonInv♦ 394.00 22.00 459.00 349.47 6.60 10.03 7.9 Redrow♦ 508.00 5.00 673.50 496.40 3.94 5.96 1178.3 WPPX♦ 1056 14.50 1474 1016 5.68 7.08 7159.6 G4S 211.60 -1.00 294.80 211.00 4.58 17.20 3461.9 Pennon 739.80 6.00 824.00 577.40 4.98 15.48 1153.0
MucklGp 533.00 2.00 574.00 483.00 4.21 4.86 10.7 Hays♦■ 155.80 -0.20 213.40 151.90 2.13 13.79 3949.6
CloseBrs♦ 1450 -9.00 1682 1315 4.21 10.72 393.0 Superdry Plc■ 729.00 8.00 2102 704.50 4.05 11.78 664.7 PrimyHth♦ 110.00 1.20 117.60 103.95 4.85 8.21 2186.2 Severn Trent 1856 13.50 2219 1664 4.50 18.21 832.2
DBAG € 34.25 0.20 52.30 33.20 4.06 7.91 30.4
Mining Homesve 912.50 13.00 1066 700.00 1.74 30.72 1058.0
TaylorWm♦ 153.20 0.20 211.90 150.15 3.09 7.94 10337.8 RDI REIT 33.20 0.60 38.99 31.25 7.83 7.72 3319.0 SSE 1136.5 7.00 1470.81 1077 8.12 14.00 2523.4
Hargr Lans 1762 18.50 2280 1532 1.73 35.52 1170.1 AngloAmer 1606.4 -15.60 1948 1322.5 4.81 8.99 4916.5 HowdenJny 454.90 13.10 541.80 403.90 2.44 14.96 2651.9
TedBaker♦ 1794 13.00 3244 1750 3.35 15.22 45.9 SEGRO 628.00 9.80 682.40 526.50 2.64 5.61 2076.8 UtdUtils 720.80 6.00 847.00 648.60 5.43 13.89 2163.5
Indvardn SKr 183.15 -0.25 220.80 168.60 2.99 17.40 476.5 AngloPacif♦ 132.00 -2.00 168.00 123.50 6.53 9.06 162.8 Intertek 4429 42.00 6084 4323 1.61 24.95 760.2

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence Burford Capital Ltd 1612 -2.00 2075 1000.00 0.52 16.04 588.1 Churchll 1270 -20.00 1320 780.00 1.94 20.26 6.4 BotswanaD 0.90 -0.05 2.65 0.77 - -10.00 3192.5 Real Estate SafeCharge 242.50 -6.00 355.00 217.00 5.27 20.55 53.7
Cohort 395.00 - 494.50 310.00 1.89 20.08 50.5 Gresham House 465.00 -4.00 480.00 377.75 - -37.94 7.5 Mulberry 328.00 13.50 1089.45 254.11 1.52 40.00 5.7 CentAsiaM♦ 211.50 -3.00 345.50 205.00 8.05 9.03 223.4 InlandHms 51.20 -0.30 74.00 50.00 3.32 6.60 367.8 Smart Metering Systems PLC 531.00 -35.00 900.00 528.00 0.98 35.85 769.6
Leeds 32.00 - 41.00 26.30 - 16.00 1.5 Portmern 975.00 -35.00 1320 910.00 3.55 14.31 6.1 Connema 2.05 - 5.60 1.90 - -1.02 574.3 Lok'nStor 371.50 - 450.00 345.10 2.69 35.45 11.0
Banks MattioliWds♦ 687.50 -15.00 865.00 685.00 2.17 22.11 52.5 TelfordHms 300.00 -5.00 474.50 299.59 5.50 6.07 197.5 HighldGld 143.00 -5.70 181.00 125.10 7.49 8.99 902.3
Tech - Hardware
LXB Retail 12.50 -0.48 25.50 11.80 - -1.59 136.2
Caribbean Inv 18.00 - 30.00 11.00 - 1.20 0.1 Miton 61.20 -0.30 76.20 34.75 2.29 15.26 151.5 WalkerGb 82.00 - 224.75 59.00 5.33 5.05 63.6 AminoTech 116.50 -2.00 220.90 110.00 5.91 12.75 929.4
Oil & Gas PnthrSec 345.00 - 400.00 295.00 1.45 2.45 1.0
Numis 287.00 -2.00 449.00 285.00 4.18 8.72 176.0 IQE 81.05 -0.95 181.50 72.45 - 62.35 4070.7
Basic Resource (Ex Mining) Industrial Engineering SIR 379.00 -1.00 403.00 349.00 3.43 8.65 131.6
Park Grp 74.75 2.50 90.00 64.50 3.95 13.35 97.5 AmeriRes 11.46 -0.02 22.50 10.86 - 7.20 2548.2
CropperJ 1305 - 1850 1208 0.90 30.35 6.5 600 Grp 16.75 - 19.50 13.15 - 8.45 104.1 BorSthnPet 3.47 - 6.00 1.65 - -18.36 41.9
SumGermny € 1.19 - 1.29 1.05 2.54 3.28 5.0 Tech - Software & Services
PolarCap 582.00 -4.00 738.00 440.00 4.38 16.77 43.8 Eckoh♦ 39.00 0.50 53.00 32.50 1.23 37.86 2497.4
Chemicals Share 25.10 -0.15 28.00 22.00 1.59 -3137.50 23.7 MS Intl 189.00 - 238.00 172.00 4.37 9.22 3.9 ClontarfEn 0.35 -0.02 0.67 0.17 - -0.69 15597.3 Retailers
Pres Tech 110.00 -1.00 207.44 100.00 - -6.47 0.9 Egdon Res 7.60 -0.50 12.50 5.42 - -10.86 270.2 Elecosoft♦ 77.00 - 28135.43 72.03 0.78 28.81 1.1
Scapa 400.00 1.00 510.00 356.60 0.50 27.03 503.9 ShoreCap 260.00 - 305.00 200.00 3.85 19.26 6.5 ASOS 5882 100.00 7770 4500 - 73.99 423.4
Hurricane Energy PLC 46.88 1.82 60.75 24.00 - -15.71 17406.4 Ingenta 111.50 -6.00 162.00 110.00 1.35 78.52 1.0
STM Group♦ 59.00 -1.00 75.04 32.05 3.05 10.30 3.4 IT
Construction & Materials PetrelRes 1.90 - 3.75 1.50 - -0.50 5.0 Support Services Iomart 370.00 -4.00 475.00 334.30 2.23 33.01 88.6
Food & Beverages BoBlue Prism Group PLC 1674 178.00 2635 995.50 - -89.52 625.3 Phoenix Global 18.53 -0.48 60.00 16.50 - -1.22 108.9 Begbies♦ 73.80 -0.10 77.00 61.00 3.12 56.77 75.6 Oxford Metrics 70.50 - 83.00 57.00 1.70 38.52 261.6
Abbey♦ 1340 -5.00 1429 1230 1.11 6.69 0.0
Camellia 9750 -20.00 13700 9100 1.38 28.95 0.4 Boohoo Group PLC 212.50 0.80 247.80 139.85 - 73.78 4534.7 Rockhop 30.55 -0.90 44.95 20.00 - -19.48 982.1 Christie 110.50 - 164.00 90.02 2.49 8.47 0.9 RhythmOne 172.00 -0.40 306.00 157.00 - -9.41 95.7
AccsysTch 96.60 2.00 102.00 72.00 - -13.77 1.3
Fevertree Drinks PLC 2737 61.00 4120 1816 0.39 60.62 526.5 Keywords Studios♦ 1444 24.00 2110 1324 0.10 92.46 276.8 Sound Energy 36.50 0.42 58.90 28.86 - -25.35 1149.0 Empres 74.50 - 135.00 69.00 1.77 9.68 3.3 SciSys♦ 153.00 11.50 199.90 110.33 1.41 8.14 162.7
Aukett 1.63 - 3.20 1.00 - -2.54 2.1
FinsbryFd 112.00 -0.50 132.00 101.00 2.68 15.78 84.9 Learning Technologies Group PLC♦ 107.50 -3.50 166.50 51.25 0.28 104.07 2955.3 UnJackOil 0.11 0.00 0.17 0.08 - -5.25 58316.0 Gattaca 103.50 -4.00 324.25 100.00 22.22 -3.56 10.8 WANdisco 395.00 -7.00 1268 380.00 - -11.34 119.5
Electronic & Electrical Equip Nichols 1335 -20.00 1872.62 1320 2.51 20.88 25.0 LEISURE HarvyNah♦ 130.25 0.25 133.00 76.00 3.30 23.64 206.5 Travel & Leisure
CeresPow 161.00 4.00 209.95 97.09 - -18.30 80.4 Pharmaceuticals & Biotech Impellam 575.00 -12.50 655.00 430.00 3.57 9.40 8.5
Health Care Equip & Services Frontier Developments PLC 1060 5.00 1880 816.00 - 116.48 47.6 Abcam 1199 -28.00 1588 946.77 0.90 39.70 856.3 Celtic 165.50 - 168.00 125.00 - 36.29 0.5
ElektronT 35.50 - 49.00 16.63 - 25.74 184.8 JhnsnSrv♦ 124.60 2.40 150.00 112.20 2.25 17.31 2247.9
Advnc Med♦ 288.00 6.50 373.50 273.00 0.38 28.46 135.5 AllcePharm 66.20 1.60 102.50 56.16 2.01 13.21 781.4 ..6%CvPf 155.00 - 170.00 107.00 - - 0.1
LPA 112.50 - 184.00 95.00 2.27 8.38 5.3 Media LonSec 2090 - 2200 2000 3.83 17.22 0.0
..Cv Pf 320.00 - 350.00 229.40 - - 0.4
ThorpeFW 279.00 3.50 393.75 267.30 1.76 22.30 36.2 AVO 38.00 - 64.80 25.00 - -2.35 82.4 M&Csaatc 324.00 -22.00 430.00 320.00 2.94 203.77 297.6 Clinigen Group PLC 848.50 -3.50 1187 777.00 0.61 37.71 441.8 NewmkSec 1.05 - 1.40 0.60 - -2.76 164.6
CareTech♦ 350.00 -6.00 445.00 340.00 2.83 13.59 151.2 e-Thera 7.50 - 10.65 5.80 - -4.41 36.7 Dart♦ 813.00 -7.00 1052 577.40 0.66 10.95 514.9
Zytronic 412.50 -2.50 590.00 350.00 4.61 15.33 49.6 MissionMk 56.00 - 60.00 37.00 2.77 8.95 12.8 NWF 171.50 4.00 215.00 85.00 3.50 10.79 58.0
Cello Hlth♦ 125.00 -1.50 139.88 106.67 2.80 29.62 45.7 Mereo Bio 190.00 10.00 352.00 170.00 - -4.13 1.5 gamingrealms 6.75 -0.28 13.50 5.60 - -4.41 21.4
YouGov 400.00 -14.00 510.00 300.20 0.50 81.63 102.1 Petards 22.50 - 28.70 17.20 - 10.14 1.7
Financial General Tristel 220.00 -7.50 393.00 215.01 1.83 27.09 43.8 Reneuron 56.00 - 220.00 1.95 - -1.01 3.9 RedhallGp 4.55 - 10.00 4.46 - -4.71 50.0
GoalsSocc 72.50 - 95.80 58.66 - 15.10 5.5
Arbuthnot 1355 -5.00 1650 1260 2.44 27.60 4.5 Mining Sareum 0.78 -0.03 1.05 0.70 - 31.00 4078.6 IDE Group Holdings 2.65 - 27.65 2.00 - -0.11 4.3
House, Leisure & Pers Goods Renew 388.00 4.00 464.75 355.00 2.32 27.87 33.6
BP Marsh 277.00 - 318.00 226.25 1.72 5.06 3.6 AMC 3.76 -0.01 8.38 3.00 - -7.10 845.1 MinoanGp 3.10 0.18 8.74 2.65 - -1.89 343.0
Restore♦ 446.00 -8.00 601.00 213.00 1.12 35.12 125.0
Airea♦ 52.50 - 74.40 28.51 2.86 15.26 1.2 PeelHtls 71.00 - 108.00 55.10 - -11.83 0.4

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin Inv 632.00 2.00 727.00 608.00 4.14 695.7 -9.2 IP UKSmall 465.50 0.50 540.00 461.00 3.72 487.5 -4.5 PerAsset 39750 150.00 41150 38700 1.41 39464. 0.7 Conventional - Property ICs 52 Week Dis(-)
Price +/-Chg High Low Yld NAV or Pm Edin WWd 844.00 4.00 1025 680.00 - 826.9 2.1 JPM Amer 436.00 3.00 472.50 368.50 1.26 463.7 -6.0 3 Price +/-Chg High Low Yld NAV or Pm
3i Infra 244.50 -1.50 272.33 197.00 3.99 207.5 17.8 EP Global 299.50 -1.50 331.00 288.00 1.77 322.4 -7.1 JPM Asn♦ 313.50 0.50 381.00 296.00 4.72 351.9 -10.9 PolarHealth 211.00 1.50 226.00 175.50 1.26 229.2 -7.9 TR Prop 388.00 3.00 435.50 356.50 2.85 395.0 -1.8 For queries about the FT Share Service pages e-mail
AbnAsianIn 189.00 2.00 225.00 184.50 4.76 211.3 -10.6 Euro Ast♦ 99.25 -0.25 136.00 98.50 6.65 - - JPM Brazil 58.75 0.50 73.41 50.00 1.36 71.6 -17.9 PolarFins 125.50 -0.50 147.50 122.00 3.11 132.9 -5.6 Direct Property ft.reader.enquiries@morningstar.com.
AbnAsian 960.00 2.00 1085 916.00 1.25 1124.5 -14.6 EuroInvT 822.00 2.00 974.00 812.00 2.62 907.4 -9.4 JPM China 235.00 3.00 345.00 215.00 0.68 264.8 -11.3 PolarTech 1190 14.00 1396 1014 - 1251.2 -4.9
AEW UK REIT 95.40 0.10 102.00 92.50 8.39 96.2 -0.8 All data is as of close of the previous business day. Company classifications
Abrdn Div I&G 119.50 - 126.00 115.00 3.29 121.5 -1.6 F&C Cp&I 310.00 8.00 350.00 296.83 3.45 295.8 4.8 JPMElct MC 101.00 - 103.00 98.00 0.35 102.0 -1.0 RIT Cap♦ 1976 6.00 2130 1828 1.64 1840.4 7.4
CustdnREIT 119.60 - 122.80 111.00 5.37 106.4 12.4 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
AbnEmgMkts 505.00 -2.00 658.00 499.00 3.02 602.4 -16.2 F&CGblSmlr 1360 20.00 1505 1255 0.93 1345.9 1.0 ..MG 777.50 -5.00 867.75 755.00 1.45 792.9 -1.9 Ruffer Inv Pr 229.00 - 242.00 219.00 0.79 223.7 2.4
F&CComPrp♦ 137.60 1.00 155.00 133.40 4.36 141.2 -2.5 100 constituent stocks are shown in bold.
AbnJapInv 542.50 - 680.50 535.00 1.11 617.2 -12.1 F&CMgdG 205.00 - 222.00 193.00 - 197.8 3.6 ..MI 102.50 - 120.99 101.00 4.49 104.3 -1.7 Schroder ToRt 326.00 4.50 383.00 303.19 1.47 316.7 2.9
F&CUKRealE 96.00 -0.80 109.00 93.40 5.21 107.3 -10.5
AbnLatAmIn♦ 64.80 -0.20 77.94 58.59 5.40 76.2 -15.0 F&CMgdI 127.50 - 146.00 120.00 4.39 126.7 0.6 JPM Emrg 784.00 8.00 935.00 765.00 1.40 897.4 -12.6 SchdrAsiaP 383.00 1.00 486.00 377.00 1.46 441.7 -13.3 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Longbow♦ 102.50 1.75 106.00 100.00 5.85 98.6 4.0
AbnNewDn 202.00 - 248.00 196.00 1.98 229.9 -12.1 F&C UK HIT A♦ 93.00 - 108.00 91.00 5.25 98.1 -5.2 JPM EurGth 268.00 2.00 339.00 265.15 2.56 307.9 -13.0 Schdr Inc♦ 268.00 -2.50 310.00 263.30 4.33 286.4 -6.4 are based on intra-day trading over a rolling 52 week period. Price/earnings
SLIPropInc 88.80 -0.50 97.00 86.80 5.36 88.9 -0.1
AbnNewIndia 394.00 9.00 547.00 383.00 - 462.1 -14.7 F&C UK HIT B♦ 93.00 -0.50 108.00 91.00 5.25 98.1 -5.2 JPM EurInc 143.00 -2.50 178.00 145.50 4.06 164.1 -12.9 SchdrJap♦ 205.50 2.00 237.00 200.00 1.70 218.3 -5.9 ratios (PER) are based on latest annual reports and accounts and are updated
UKComPrp 86.30 0.20 91.70 84.60 4.26 93.6 -7.8
AbnNewThai 555.00 - 596.50 516.00 2.00 650.0 -14.6 F&C UK HIT UNIT♦ 373.00 -2.00 427.00 369.00 - 392.5 -5.0 JPM EuSm 362.00 -1.00 448.00 357.00 1.30 412.0 -12.1 SchdrOrient 237.00 2.00 271.00 224.20 3.92 231.8 2.2 with interim figures. PER is calculated using the company’s diluted earnings
AbnSmlInCo♦ 253.50 -0.50 304.00 248.00 2.11 298.2 -15.0 FidAsian♦ 374.00 1.00 423.00 351.00 1.34 382.2 -2.1 JPM Clavr 686.00 - 790.00 674.00 3.86 689.9 -0.6 SchdrUKMd 484.50 1.50 584.00 482.00 2.70 569.0 -14.9 VCTs 52 Week Dis(-) from continuing operations. Yields are based on closing price and on dividends
Abf Sml 1198 -2.00 1444 1198 2.40 1372.9 -12.7 FidChiSpS 189.00 - 269.50 180.72 1.32 214.6 -11.9 JPMGIConv♦ 90.40 -1.00 102.75 88.00 4.98 95.5 -5.3 ScotAmer 359.00 7.00 393.00 341.00 3.12 344.4 4.2 Price +/-Chg High Low Yld NAV or Pm paid in the last financial year and updated with interim figures. Yields are
Abf Spl Inc 88.00 1.30 109.38 84.87 - 86.8 1.4 Fid Euro 214.50 0.50 239.00 199.50 2.03 237.7 -9.8 JPM GEI♦ 117.00 1.25 143.00 112.80 4.19 123.1 -5.0 Scottish Inv♦ 811.00 2.00 902.00 771.00 3.08 893.8 -9.3 ArtemisVCT 68.00 1.00 82.00 62.50 5.88 59.2 14.9 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
Alliance 719.00 1.00 788.00 686.00 1.84 773.6 -7.1 Fid Jap 148.25 0.75 167.50 136.00 - 160.5 -7.6 JPM Gl Gr&Inc 304.00 3.00 341.00 296.00 4.00 302.4 0.5 ScottMort 466.00 5.70 569.00 414.20 0.64 464.6 0.3 Baronsmead 2nd VT 85.25 - 91.59 83.00 5.28 92.1 -7.4 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
AllianzTech 1385 15.00 1645 1065 - 1360.1 1.8 Fid Spec 252.00 1.00 281.00 237.00 1.83 248.1 1.6 JPM I&C Uni 388.00 - 394.00 347.20 - - - ScottOrtll 874.00 12.00 1095 840.00 1.32 1045.7 -16.4 BSC VCT 74.00 - 76.00 69.00 7.77 77.3 -4.3 capital changes where appropriate.
Art Alpha 296.00 -2.00 358.00 288.00 1.52 354.4 -16.5 FinsG&I♦ 743.00 -3.00 858.00 715.00 1.97 743.0 0.0 JPM Ind 591.00 5.00 785.00 566.00 - 692.8 -14.7 Seneca I&G 161.00 0.50 179.89 159.00 3.93 161.2 -0.1 ..VCT2 52.00 -1.00 57.25 50.00 5.77 57.3 -9.2 Trading volumes are end of day aggregated totals, rounded to the nearest
Aurora Inv 203.00 - 224.00 196.00 1.35 200.2 1.4 FstPacfic HK HK$ 3.68 -0.07 6.09 3.41 3.59 - - JPM JpSm♦ 403.00 8.50 468.00 386.75 - 442.2 -8.9 StdLf Eqt 445.00 10.00 514.00 429.00 3.98 439.7 1.2 Inc&GthVCT 69.00 - 74.00 67.00 8.70 77.7 -11.2 1,000 shares.
Axiom 94.00 -1.00 109.00 95.00 6.38 96.7 -2.8 For & Col♦ 662.00 3.00 744.00 611.00 1.60 669.9 -1.2 JPM Jap 412.00 - 473.00 394.00 1.21 468.6 -12.1 StrategicEq♦ 205.00 -3.00 242.00 205.07 0.38 243.6 -15.8 KingsAYVCT♦ 22.00 - 22.80 19.00 5.00 21.9 0.5 Net asset value per share (NAV) and split analytics are provided only as a
BG Japan 790.00 -5.00 886.00 755.50 - 756.4 4.4 Geiger 21.00 -0.80 28.00 17.00 - 18.5 13.5 JPM Mid♦■ 1002.5 - 1295 996.00 2.29 1085.3 -7.6 Temp Bar 1186 4.00 1358 1168 3.62 1266.3 -6.3 Nthn 2 VCT 57.00 - 66.00 54.00 9.65 63.2 -9.8 guide. Discounts and premiums are calculated using the latest cum fair net
BG Shin 184.00 -2.90 998.00 170.00 - - - GenEmer 618.00 -7.00 751.00 604.00 1.74 721.7 -14.4 JPM Mlti-As♦ 93.50 - 103.56 91.00 - 98.9 -5.5 TempEmerg 659.00 4.00 830.00 639.00 1.25 757.3 -13.0 Nthn 3 VCT 84.50 - 94.25 81.50 6.51 92.0 -8.2 asset value estimate and closing price. Discounts, premiums, gross redemption
Baillie Gifford UK 163.50 0.50 200.00 161.00 3.49 177.0 -7.6 GRIT 4.75 - 11.50 1.60 - 7.7 -38.3 JPMRussian♦ 508.00 -2.00 561.70 446.00 4.13 611.2 -16.9 Tetragon $ 12.43 -0.10 14.02 12.37 5.34 21.4 -41.9 NthnVent 62.50 - 74.90 60.00 4.80 69.2 -9.7 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
Bankers 825.00 -5.00 926.00 818.00 2.31 856.4 -3.7 GoldenPros 22.70 0.95 36.88 20.00 - 29.9 -24.1 JPM Smlr 1090 - 1290 1010 2.11 1245.2 -12.5 TRIG 113.40 0.80 113.60 101.00 5.67 107.7 5.3 ProVenGI 70.00 2.00 71.50 60.50 3.57 71.7 -2.4 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BH Global 1490 -2.50 1515 1330 - 1547.0 -3.7 Gulf Invest $ 1.02 - 1.09 0.82 2.89 1.2 -15.0 JPM US Sml 301.00 2.00 347.00 263.00 0.83 305.1 -1.3 TREurGth 877.00 -4.00 1265 865.00 1.31 965.3 -9.1 ProVenVCT 104.00 -1.00 105.50 84.00 2.40 111.7 -6.9 in pence.
..USD $ 14.95 - 15.10 13.11 - 15.6 -4.2 Hansa 1030 -10.00 1160 925.00 1.55 1361.4 -24.3 KeystoneInv 1535 -15.00 1845 1530 3.58 1771.6 -13.4 TroyInc&G♦ 74.60 1.60 80.80 72.60 3.53 74.5 0.1 UnicornAIM 139.00 - 147.00 132.00 4.68 171.8 -19.1
BH Macro 2365 22.50 2370 1932 - 2414.0 -2.0 ..A 975.00 - 1080 787.70 1.64 1361.4 -28.4 Law Deb 574.00 4.00 652.00 550.00 3.01 625.7 -8.3 Utilico Emerging Market 193.00 3.00 233.00 186.30 4.51 228.1 -15.4 X FT Global 500 company
Ordinary Income Shares 52 Week HR
..EUR € 18.57 -0.10 20.85 18.10 - - - Hend Alt 277.50 -0.50 305.00 265.00 1.71 333.1 -16.7 Lazard WorldTst 347.00 -5.00 396.00 342.00 3.16 355.3 -2.3 UIL Inv 180.00 - 185.00 151.00 4.17 296.5 -39.3 ♦ trading ex-dividend
Hen Div Inc Tr 84.00 0.60 97.67 79.40 6.07 84.4 -0.5 LinTrain £ 1155 -35.00 1300 760.00 1.34 819.2 41.0 VEIL 432.00 -8.00 502.00 390.00 - 506.4 -14.7 Price +/-Chg High Low Yld WO GRY 0%
..USD $ 24.20 0.70 24.40 19.20 - 24.6 -1.6 ■ trading ex-capital distribution
HenEuroF 1130 -2.50 1430 1115 2.61 1223.6 -7.6 Lowland♦ 1375 -5.00 1590 1360.2 3.64 1456.3 -5.6 Witan 1016 6.00 1140 991.00 2.12 1028.8 -1.2 JPM I&C 99.50 - 103.99 83.50 7.64 - -
BiotechGth 704.00 -4.00 854.00 650.00 - 758.3 -7.2 # price at time of suspension from trading
BlckRCom 73.50 -0.20 86.00 69.80 5.44 79.0 -7.0 HenEuro♦ 1030 -10.00 1235 1025 2.52 1116.1 -7.7 Majedie 283.00 7.00 311.00 259.68 3.45 315.7 -10.4 WitanPac♦ 294.00 4.00 354.00 279.00 1.87 347.9 -15.5 Zero Dividend Preference Shares 52 Week HR
BlckREmEur 311.50 0.50 396.53 297.00 3.63 329.2 -5.4 HenFarEs 340.00 8.00 390.75 316.00 6.18 332.5 2.3 Man&Lon 466.00 -1.00 542.00 395.00 0.77 496.8 -6.2 WwideHlth 2595 25.00 2920 2320 0.87 2572.6 0.9 Price +/-Chg High Low SP WO TAV 0% The prices listed are indicative and believed accurate at the time of publication.
BlckRFrnt 134.50 0.50 169.50 132.50 3.58 130.0 3.5 HenHigh♦ 168.00 0.50 194.75 162.50 5.65 169.8 -1.1 Marwyn Val 122.50 - 162.94 120.00 - 190.4 -35.7 Abf Spl Inc 106.00 - 110.00 105.00 - - - No offer is made by Morningstar or the FT. The FT does not warrant nor
Conventional - Private Equity 52 Week Dis(-)
BlckRGtEur 322.50 -0.50 372.00 308.00 1.69 336.6 -4.2 HenInt Inc 155.00 2.50 172.00 149.00 3.23 155.3 -0.2 MercantIT♦ 186.60 0.60 227.00 185.70 2.95 - - JPM I&C 189.50 - 191.00 186.00 - - - guarantee that the information is reliable or complete. The FT does not accept
Price +/-Chg High Low Yld NAV or Pm
BlckR I&G 183.50 - 214.00 182.00 3.60 189.4 -3.1 Hen Opp 990.00 -6.50 1142.3 944.00 2.02 1165.4 -15.1 MrchTst♦ 463.00 3.50 542.00 450.00 5.42 472.4 -2.0 JZ Capital 431.00 -1.00 438.00 418.80 -19.6 -22.6 483.7 responsibility and will not be liable for any loss arising from the reliance on
HenSmlr 832.00 2.00 986.00 812.00 2.28 888.6 -6.4 Mid Wynd♦ 482.00 -3.00 545.00 466.00 0.45 478.5 0.7 Altamir € 15.28 - 17.34 12.70 4.28 21.1 -27.6
BlckRckLat♦ 435.00 7.50 499.00 370.00 2.32 517.9 -16.0 UIL Limited 2024 ZDP 107.25 -0.63 108.70 100.00 -13.3 -17.1 138.4 or use of the information.
Herald 1190 20.00 1380 1060 - 1386.8 -14.2 Miton Global 271.50 -1.00 298.00 250.00 - 269.1 0.9 BGUSGROWTH 118.00 -0.80 135.60 99.60 - 114.6 3.0
BlckRckNrAm 167.00 -1.00 183.50 144.00 3.44 173.8 -3.9 UILFn18 160.50 - 161.00 157.00 - - 160.5
HICL Infra 154.40 0.60 163.90 133.00 5.05 146.0 5.8 Monks 762.00 5.00 874.00 731.50 0.16 747.0 2.0 Electra 828.00 10.00 1884 795.00 - 1084.0 -23.6 The FT Share Service is a paid-for-print listing service and may not be fully
BlckRSmlr 1325 35.00 1600 1205 1.74 1426.6 -7.1 UILFn20 147.50 - 148.58 140.00 -56.5 -71.4 154.9
Highbridge Multi 218.50 -1.50 228.00 214.25 - 221.4 -1.3 MontanSm 842.50 2.50 990.00 760.00 0.98 946.4 -11.0 F&C PvtEq♦ 335.00 2.50 389.00 308.00 5.26 349.3 -4.1 representative of all LSE-listed companies. This service is available to all listed
BlckRThrmt 484.00 1.00 578.00 452.25 1.86 528.9 -8.5 UIL Finance 2022 ZDPs 128.00 - 130.00 120.00 -25.4 -33.8 147.0
Impax Env. 263.00 1.00 290.00 240.00 0.95 261.9 0.4 Mur Inc 716.00 - 818.00 704.00 4.99 784.1 -8.7 HVPE 1364 -6.00 1450 1174 - 1743.5 -21.8 companies, subject to the Editor’s discretion. For new sales enquiries please
BlckRWld 336.00 -1.50 425.00 329.00 4.64 402.0 -16.4
HgCapital♦ 1985 10.00 2030 1675 2.32 2047.7 -3.1
Brit Emp 713.00 8.00 768.00 682.00 1.68 783.0 -8.9 Ind IT 624.00 34.00 810.00 512.50 0.96 561.0 11.2 Mur Int♦ 1062 4.00 1300 1046 4.76 1102.8 -3.7
ICG Ent Tr 840.00 - 896.00 778.00 2.50 1024.8 -18.0
Investment Companies - AIM email daniel.fish@ft.com or call +44 (0)20 7873 4571.
Brunner 730.00 6.00 818.00 714.00 2.26 815.0 -10.4 IGC 79.50 -0.50 120.00 72.00 - 88.9 -10.6 NewCtyEgy 16.50 - 17.25 9.00 - - -
IntBiotech 602.00 -6.00 700.00 518.00 4.15 615.1 -2.1 NewCityHY 59.60 -1.40 63.60 54.70 7.42 56.6 5.3 JZ Capital 460.00 - 510.00 420.00 - 755.9 -39.1 52 Week Dis(-)
Caledonia Inv 2670 -10.00 2890 2515 2.07 3312.2 -19.4
CanGen C$ 22.70 -0.28 26.44 21.41 3.15 32.2 -29.5 Intl PP♦ 153.00 - 164.50 138.20 4.46 142.5 7.4 New Star IT 110.00 - 119.90 102.00 0.73 158.6 -30.6 NB PE Ptnr 1115 5.00 1150 886.00 - 1362.1 -18.1 Price +/-Chg High Low Yld NAV or Pm Data provided by Morningstar
Inv AsiaTr 252.00 2.50 312.00 238.00 1.71 286.8 -12.1 NorthAmer♦ 1270 -2.50 1405 1155 3.11 1407.4 -9.8 Nthn Invs 196.00 - 232.06 192.00 15.31 230.1 -14.8 AbnFrntrMkts 47.50 - 65.50 46.00 4.8 54.2 -12.4
City Merch♦ 188.00 0.25 200.00 177.00 5.32 183.5 2.5
Inv IncGro♦ 256.50 2.00 304.00 253.00 4.27 298.6 -14.1 NthAtSml 2950 -5.00 3080 2370 - 3722.4 -20.8 Pantheon 2090 10.00 2170 1775 - 2555.7 -18.2 CrysAmber 214.00 - 239.12 165.00 2.3 218.2 -1.9
CityNatRs 99.35 -0.65 130.00 94.80 5.64 118.2 -15.9
IP EnInc♦ 72.80 - 84.15 70.00 6.87 71.2 2.2 Oryx Int 812.50 - 844.50 730.00 - 911.8 -10.9 PantheonR 1895 - 1911.25 1460 - - - Gresham House Strategic 915.00 - 1060 800.00 1.6 1251.6 -26.9
City Lon♦ 389.50 0.50 444.50 388.00 4.48 383.4 1.6
IPST BalR 133.00 -4.50 144.00 132.00 - 132.9 0.1 PacAsset 250.00 6.00 292.00 234.00 1.04 259.7 -3.7 PrincssPE € 10.35 - 10.95 9.36 5.44 - - Infra India 3.50 - 8.35 1.62 - 26.2 -86.6
DiverseInc■ 96.00 0.40 111.00 95.00 3.28 96.4 -0.4
IPST Gbl Eq♦ 195.50 - 214.00 194.00 3.43 194.0 0.8 PacHorzn 298.00 2.00 395.00 259.00 - 292.8 1.8 Smithson - - - - - 999.1 -
Dun Inc 241.00 -1.00 270.00 229.15 5.20 261.4 -7.8
IPST Mngd 101.50 -0.50 103.00 101.00 - 103.6 -2.0 PerpInc&Gr 331.00 1.50 393.90 328.00 4.17 370.2 -10.6 StdLfPv 350.00 2.50 356.00 315.00 4.31 413.5 -15.4
EcofinGlobal 126.50 2.25 135.50 109.00 5.06 140.8 -10.2
EdinDragn 335.00 2.00 394.00 323.00 0.99 376.3 -11.0 IPST UK Eq♦ 166.50 - 194.00 165.15 3.87 164.3 1.3 Guide to FT Share Service www.morningstar.co.uk
Thursday 25 October 2018 ★ FINANCIAL TIMES 23

MANAGED FUNDS SERVICE

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

GBP Distributing Class (H) £ 10.98 - -0.09 0.82 China Consumer Fund W-ACC-GBP £ 2.45 - -0.02 0.47 Janus Henderson Fixed Interest Monthly Income Fund Inc 21.08 21.99 -0.02 4.61
Dodge & Cox Worldwide Funds plc-International Stock Fund
Emerging Asia Fund W-ACC-GBP £ 1.34 - 0.00 0.53 Janus Henderson Global Sustainable Equity Fund A Inc 285.70 - 0.20 0.04
Abbey Life Assurance Company Limited (UK)
USD Accumulating Share Class $ 15.65 - -0.18 0.00
Findlay Park Funds Plc (IRL) Lloyds Investment Fund Managers Limited (1000)F (JER)
1 Wythall Green Way, Wythall, Birmingham, B47 6WG Emerging Eur Mid East and Africa W £ 1.96 - 0.02 1.74 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Janus Henderson Global Equity Income Fund A Inc 58.66 - 0.02 3.10 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
additional fund prices can be found @ www.abbeylife.co.uk EUR Accumulating Share Class € 16.07 - -0.18 0.00 FCA Recognised Other International Funds
Insurances Enhanced Income Fund W-ACC-GBP £ 1.39 - 0.01 6.35 Janus Henderson Global Equity Fund Acc 3096.96 3230.37 12.18 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund American Fund USD Class $ 110.87 - -0.88 0.00 Lloydstrust Gilt £ 12.2900xd - 0.0700 1.89
Life Funds
USD Accumulating Share Class $ 25.80 - -0.21 0.00 Enhanced Income Fund W-INC-GBP £ 0.93 - 0.00 6.89 Janus Henderson Global Technology Fund A Acc 1784.00 - 0.00 0.00 Lloyds Investment Funds Limited
American Fund GBP Hedged £ 58.39 - -0.47 0.00
Prop. Acc. Ser 2 1640.70 1727.00 0.20 -
Euro High Income € 1.5320xd - 0.0010 2.76
Aspect Capital Ltd (UK) GBP Accumulating Share Class £ 30.91 - -0.30 0.00 European Fund W-ACC-GBP £ 15.44 - 0.01 1.46 Janus Henderson Multi-Asset Absolute Return Fund A Acc 140.90 - -0.10 0.81 Morgan Stanley Investment Funds (LUX)
American Fund GBP Unhedged £ 85.45 - -0.68 0.00
Selective Acc. Ser 2 1838.40 1935.20 3.90 - Other International Funds 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
High Income £ 0.8405 - 0.0025 4.26
GBP Distributing Share Class £ 19.26 - -0.18 0.64 European Fund W-INC-GBP £ 16.95 - 0.01 1.50 Janus Henderson Multi-Manager Active Fund A Acc 217.30 - 0.00 0.00 www.morganstanleyinvestmentfunds.com
American Ser. 4 2526.40 2659.30 -1.80 - Aspect Diversified USD $ 366.17 - -21.33 0.00
Sterling Bond £ 1.4890xd - 0.0040 2.53 FCA Recognised
EUR Accumulating Share Class € 29.16 - -0.26 0.00 European Opportunities W-ACC-GBP £ 4.32 - -0.02 0.82 Janus Henderson Multi-Manager Distribution Fund A Inc 129.80 - -0.80 2.92
Custodian Ser. 4 554.90 584.10 0.60 - Aspect Diversified EUR € 207.64 - -12.20 0.00 Foord Asset Management Lloyds Gilt Fund Limited US Advantage A F $ 84.59 - 1.14 0.00
GBP Distributing Class (H) £ 11.49 - -0.09 0.48 Extra Income Fund Y-ACC-GBP £ 1.27 - 0.01 3.54 Website: www.foord.com - Email: info@foord.com Janus Henderson Multi-Manager Diversified Fund A Acc 83.88 - -0.36 3.06
Equity Ser. 4 655.60 690.10 -0.80 - Aspect Diversified GBP £ 109.50 - -6.44 0.00 Lloyds Gilt Fund Quarterly Share £ 1.2950xd - 0.0060 1.44 Asian Equity A F $ 44.10 - 0.11 0.00
FCA Recognised - Luxembourg UCITS
Extra Income Fund Y-GACC-GBP £ 1.31 - 0.00 3.73 Janus Henderson Multi-Manager Global Select Fund Acc 236.40 - -1.10 0.00
European Ser 4 716.70 754.40 0.60 - Aspect Diversified CHF SFr 97.57 - -5.78 0.00 Foord International Fund | R $ 38.11 - -0.24 - Monthly Share £ 1.2480xd - 0.0060 1.44 Asian Property A F $ 19.21 - 0.06 0.00
Extra Income Fund Y-GINC-GBP £ 1.29 - 0.00 3.61 Janus Henderson Multi-Manager Income & Growth Fund A Acc 171.80 - -1.10 2.31 Lloyds Money Fund Limited
Fixed Int. Ser. 4 943.20 992.90 3.60 - Aspect Diversified Trends USD $ 106.03 - -1.73 0.00 Foord Global Equity Fund (Lux) | R $ 12.07 - -0.16 - Emerg Europ, Mid-East & Africa Eq A F € 68.74 - 0.85 0.00
Extra Income Fund Y-INC-GBP £ 1.25 - 0.01 3.52 Janus Henderson Multi-Manager Income & Growth Fund A Inc 148.60 - -0.90 2.34 Sterling Class £ 52.5270 - 0.0000 -0.20
Aspect Diversified Trends EUR € 100.52 - -1.65 0.00 Regulated
Intl Ser. 4 594.10 625.40 0.10 - Emerging Markets Debt A F $ 82.93 - 0.09 0.00
Lloyds Multi Strategy Fund Limited
Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 0.99 - -0.01 - Foord Global Equity Fund (Sing) | B $ 14.61 - -0.19 0.00 Janus Henderson Multi-Manager Managed Fund A Acc 269.00 - 0.00 0.03
Japan Ser 4 493.20 519.20 0.80 - Aspect Diversified Trends GBP £ 107.27 - -1.76 0.00 Conservative Strategy £ 1.2010 - -0.0060 0.43 Emerging Markets Domestic Debt AX F £ 10.98 10.98 0.07 6.44
Fidelity Short Dated Corporate Bond Fund Y - Gross Inc £ 9.65 - 0.01 3.90 Foord International Trust (Gsy) $ 37.82 - -0.24 0.00 Janus Henderson Multi-Manager Managed Fund A Inc 262.10 - 0.10 0.02
Man. Ser. 4 1988.10 2092.80 -0.70 - Growth Strategy £ 1.7320 - -0.0190 0.23 Emerging Markets Equity A F $ 37.64 37.64 0.20 0.00
Fidelity Short Dated Corporate Bond Fund Y - Gross Acc £ 10.35 - 0.00 3.96 Janus Henderson Sterling Bond Unit Trust Acc 219.74 229.22 0.54 2.20
Money Ser. 4 525.80 553.50 0.00 -
Dragon Capital Group
Aggressive Strategy £ 2.3380 - -0.0320 0.00 Euro Bond A F € 16.13 16.13 0.01 0.00
Atlantas Sicav (LUX) 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Global Dividend Fund W-ACC-GBP £ 2.08 - 0.02 2.66 Janus Henderson Sterling Bond Unit Trust Inc 63.93 66.68 0.16 2.23
Prop. Ser. 4 1162.30 1223.50 0.10 - Regulated Fund information, dealing and administration: funds@dragoncapital.com Franklin Templeton International Services Sarl (IRL) Global USD Growth Strategy $ 1.5600 - -0.0150 0.00 Euro Corporate Bond AX F £ 26.93 26.93 -0.03 1.26
American Dynamic $ 4547.45 4547.45 -3.59 0.00 Other International Funds Global Dividend Fund W-INC-GBP £ 1.74 - 0.01 2.96 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Janus Henderson Strategic Bond Fund A Inc 119.20 - 0.10 3.60
Custodian Ser 5 529.00 556.80 0.60 - Other International Funds Dealing Daily
Vietnam Property Fund (VPF) NAV $ 0.80 - 0.03 0.00 Euro Strategic Bond A F € 45.65 45.65 -0.01 0.00
American One $ 4336.12 4336.12 7.81 0.00 Global Enhanced Income W-ACC-GBP £ 1.69 - 0.01 3.62 Franklin Emerging Market Debt Opportunities Fund Plc Janus Henderson UK & Irish Smaller Companies Fund A Acc 588.80 - -2.60 0.63
International Ser 5 566.30 596.20 0.10 - European Currencies High Yield Bd A F € 24.32 24.32 -0.03 0.00
Franklin Emg Mkts Debt Opp CHFSFr 16.80 - 0.34 9.31
Bond Global € 1436.35 1436.35 10.23 0.00 Global Enhanced Income W-INC-GBP £ 1.33 - 0.01 4.80 Janus Henderson UK Absolute Return Fund A Acc 154.70 - 0.30 0.00
Managed Ser 5 1895.30 1995.00 -0.60 - Lothbury Property Trust (UK) European Equity Alpha A F € 41.98 - 0.28 0.00
Franklin Emg Mkts Debt Opp GBP £ 10.64 - 0.17 6.78 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
Eurocroissance € 970.03 970.03 6.22 0.00 DSM Capital Partners Funds (LUX) Global Focus Fund W-ACC-GBP £ 21.47 - 0.06 0.33 Janus Henderson UK Alpha Fund A Acc 137.10 - 0.00 1.55
Money Ser 5 514.80 541.90 0.00 - www.dsmsicav.com Property & Other UK Unit Trusts European Property A F € 34.08 34.08 0.34 0.00
Franklin Emg Mkts Debt Opp SGD S$ 22.77 - 0.38 5.34
Far East $ 809.77 - -9.59 0.00 Regulated Global High Yield Fund Y-ACC-GBP £ 14.09 - -0.08 3.57 Janus Henderson UK Equity Income & Growth Fund A Inc 561.00 - -1.90 3.69
Property Ser 5 1108.00 1166.30 0.00 - Lothbury Property Trust GBP £ 1987.14 2141.44 -3.50 3.10
Eurozone Equity Alpha A F € 11.85 11.85 0.04 0.00
DSM Global Growth I2 € 175.12 - -2.24 0.00 Franklin Emg Mkts Debt Opp USD $ 17.68 - 0.32 6.94
Global High Yield Fund Y-GACC-GBP £ 14.69 - -0.01 3.57 Janus Henderson UK Index Fund A Acc 598.20 - 1.70 2.47
Pension Funds
Global Bond A F $ 40.64 40.64 -0.11 0.00
American 3123.80 3288.20 -2.60 - DSM Global Growth I2 A$ 103.47 - -0.98 - Global High Yield Fund Y-GINC-GBP £ 10.70 - -0.03 3.59 Janus Henderson UK Property PAIF A Acc £ 2.32 2.44 0.00 -
Barclays Investment Funds (CI) Ltd (JER) Global Brands A F $ 131.09 - 1.05 0.00
Equity 5828.30 6135.10 -5.90 - 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 DSM Global Growth I1 € 106.66 - -1.37 - Global High Yield Fund Y-INC-GBP £ 10.50 - -0.06 3.21 Janus Henderson UK Property PAIF A Inc £ 1.03 1.08 0.00 3.25
FCA Recognised Global Convertible Bond A F $ 44.12 - -0.01 0.00
European 1489.80 1568.20 1.60 - Bond Funds DSM US Large Cap Growth A $ 146.04 - -0.99 0.00 Global Property Fund W-ACC-GBP £ 1.72 - 0.02 1.78 Janus Henderson UK Tracker Fund A Acc 270.40 - 0.80 2.56
Global Property A F $ 28.67 - 0.18 0.00
Fixed Int. 1769.80 1863.00 8.60 - Sterling Bond F £ 0.46 - 0.00 2.65 DSM US Large Cap Growth I2 € 127.65 - -0.75 0.00 Global Property W Inc £ 1.43 - 0.02 2.59 Janus Henderson US Growth Fund A Acc 1116.00 - -2.00 0.00
Indian Equity A F $ 34.96 - 0.62 0.00
International 1316.70 1386.00 0.30 - Global Special Sits W-ACC-GBP £ 37.24 - 0.08 0.60
M & G Securities (1200)F (UK) Latin American Equity A F $ 52.01 - 0.54 0.00
Japan 542.80 571.30 1.10 - Index Emerging Markets P-Acc £ 1.41 - 0.00 2.00 Fundsmith LLP (1200)F (UK) PO Box 9038, Chelmsford, CM99 2XF
PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815 www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472 Short Maturity Euro Bond A F € 20.06 20.06 0.00 0.00
Managed 5322.80 5603.00 1.40 - Index Emerging Markets P-Inc-GBP £ 1.16 - 0.00 2.15 www.fundsmith.co.uk, enquiries@fundsmith.co.uk Authorised Inv Funds
Authorised Inv Funds US Dollar Liquidity A F $ 13.28 - 0.00 0.00
Index Europe ex UK Fund P-Inc-GBP £ 1.25 - 0.01 2.34 Charifund Inc 1524.46 - 1.86 5.05
Property 3048.60 3209.00 0.00 -
Fundsmith Equity T Acc 384.70 - 0.61 0.51
US Growth A F $ 108.87 - 1.83 0.00
Index Europe ex UK P-Acc £ 1.34 - 0.00 2.11 Charifund Acc 23887.41 - 29.17 4.90
Security 1479.60 1557.50 0.00 -
Fundsmith Equity T Inc 355.50 - 0.56 0.51
US Growth AH F € 71.54 71.54 1.21 0.00
Selective 2355.20 2479.20 5.10 - CCLA Investment Management Ltd (UK) E.I. Sturdza Strategic Management Limited (GSY) Index Japan Fund P-Inc-GBP £ 1.50 - 0.00 1.73 Kames Capital ICVC (UK)
Senator House 85 Queen Victoria Street London EC4V 4ET Regulated Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA US Growth AX F £ 84.25 84.25 1.90 0.00
Formerly Hill Samuel Life Assurance Ltd Index Japan P-Acc £ 1.59 - 0.00 1.57
Authorised Inv Funds 0800 358 3009 www.kamescapital.com M & G Securities Ltd (UK)
1 Wythall Green Way, Wythall, Birmingham, B47 6WG Strat Evarich Japan Fd Ltd JPY ¥ 80140.00 - -2577.00 0.00
GAM UK Charity Funds US Property A F $ 69.03 - 0.82 0.00
Diversified Income 1 Units GBP Inc £ 1.54 1.54 0.01 3.08 Authorised Funds
Managed Ser A (Life) 1891.90 2002.00 -14.60 - Index Pacific ex Japan P-Acc £ 1.46 - 0.01 3.33 funds@gam.com, www.funds.gam.com
Strat Evarich Japan Fd Ltd USD $ 802.71 - -25.38 0.00 Charibond 122.71 - 0.13 2.28
Diversified Monthly Inc B Acc 132.76 - -0.03 5.00
Diversified Income 2 Units GBP Inc £ 1.48 1.48 0.00 3.09 Regulated
Managed Ser A (Pensions) 1280.80 1348.20 -12.10 - Index Pacific ex Japan P-INC-GBP £ 1.12 - 0.01 3.44
LAPIS TOP 25 DIV.YLD-D £ 106.92 - -0.44 1.83 Diversified Monthly Inc B Inc 104.39 - -0.02 5.11 (Accum Units) 3986.23 - 4.27 2.28
Formerly Target Life Assurance Ltd Diversified Income 3 Units GBP Inc £ 1.49 1.49 0.00 - Index UK Fund P-INC-GBP £ 1.10 - -0.01 3.21 Morgens Waterfall Vintiadis.co Inc
1 Wythall Green Way, Wythall, Birmingham, B47 6WG Diversified Growth B Acc £ 1.57 - 0.00 2.86 NAACIF 84.44 - 0.05 4.03 Other International Funds
The Public Sector Deposit Fund E.I. Sturdza Funds PLC (IRL)
Regulated Index UK P-Acc £ 1.26 - -0.01 2.63 Phaeton Intl (BVI) Ltd (Est) $ 507.82 - -14.41 0.00
Managed (Life) 1905.60 2005.90 -14.60 - The Public Sector Deposit Fund-share class 1 ♦ F * 100.00 - 0.00 0.77 (Accum Units) 8472.90 - 4.69 3.93
Ethical Cautious Managed B Acc £ 1.28 - 0.00 2.01
Nippon Growth (UCITS) Fd - B ¥ 90492.00 - -2483.00 0.00 Index US Fund P-Inc-GBP £ 1.84Asset Management
- GYS Investment Management Ltd
0.02 1.41 (GSY)
Managed Growth (Life)

Managed (Pensions)
632.10 665.40 -7.10

7688.30 8093.00 -72.60

-

-
The Public Sector Deposit Fund-share class 4 ♦ F * 100.00 - 0.00 0.71
Strategic China Panda Fd - USD $ 2702.66 - -76.10 0.00 Index US P-Acc £ 2.07 - 0.01 1.36
Regulated
Taurus Emerging Fund Ltd $ 122.53 125.03 12.81 0.00
Ethical Cautious Managed B Inc
Asset Management £ 1.15 - 0.00 2.03
Asset Management
Ethical Corporate Bond B Acc £ 1.88 - 0.00 3.06
Strategic Euro Bond Fd - Acc € 1106.10 - -0.70 0.00 Index World Fund P-Inc-GBP £ 1.55 - 0.01 1.77 MMIP Investment Management Limited (GSY)
Managed Growth (Pensions) 796.00 837.90 -10.90 - Regulated
Ethical Corporate Bond B Inc £ 1.01 - 0.00 3.06
CCLA Investment Management Ltd (UK)
Strategic Europe Value Fd - EUR € 215.26 - -2.16 0.00 Multi-Manager Investment Programmes PCC Limited
Index World P-Acc £ 1.75 - 0.01 1.66
Asset Management
additional fund prices can be found on our website Senator House 85 Queen Victoria Street London EC4V 4ET

Asset Management
Genesis Asset Managers LLP Ethical Equity B Acc £ 2.06 - 0.00 2.03 UK Equity Fd Cl A Series 01 £ 2978.60 3000.06 23.35 0.00 Managemen
Asset Management
Property & Other UK Unit Trusts Strategic European Smaller Companies Fd - EUR € 1108.75 - -20.93 0.00 Japan Fund W-ACC-GBP £ 3.58 - 0.01 0.42 Other International Funds
CBF Church of England Funds
Investment Inc 1676.70 1683.49 21.48 3.13
Strategic Global Bond Fd - USD $ 1041.90 - 0.53 0.00 Japan Smaller Cos Fund W-ACC-GBP £ Asset Management 3.25 - 0.01 0.25 Emerging Mkts NAV £ 7.20 - Asset Management
-0.17 0.00
High Yield Bond B Acc £ 2.73 - -0.01 4.43
Asset Management
Diversified Absolute Rtn Fd USD Cl AF2 $ 1637.43 - 6.48 0.00
Natixis International Funds (LUX) I SICAV (LUX)
High Yield Bond B Inc £ 0.96 - 0.00 4.43 Diversified Absolute Return Stlg Cell AF2 £ 1606.09 - 4.45 0.00
Strategic Global Quality Fd - USD Inst $ 137.65 - -1.12 0.00 MoneyBuilder Balanced Y-ACC-GBP £ 0.54 - 0.00 3.48 FCA Recognised
Investment Acc 3796.03 3811.40 48.63 0.00
Investment Grade Bond B Acc 176.94 - 0.33 2.17 Global Equity Fund A Lead Series £ 1529.91 1536.08 -7.63 0.00 ASG Managed Futures Fund I/A (USD) $ 93.09 93.09 0.30 0.00
Strategic Quality Emerging Bond Fd - USD $ 1037.23 - 0.05 0.00 MoneyBuilder Balanced Y-INC-GBP £ 0.56 - 0.00 4.23
Global Equity Inc 188.42 188.71 2.95 3.51
Investment Grade Bond B Inc £ 1.22 - 0.01 2.67 Harris Global Equity Fund R/A (USD) $ 289.51 289.51 -3.78 0.00
Strategic US Momentum and Value Fd - USD Class $ 860.24 - -6.99 0.00 MoneyBuilder Dividend Y-INC-GBP £ 1.24 - 0.01 4.70
Global Equity Acc 310.43 310.90 4.87 0.00
Sterling Corporate Bond B Acc £ 0.82 - 0.00 3.06 Loomis Sayles Global Growth Equity Fund I/A (USD) $ 129.72 129.72 -1.69 0.00
Algebris Investments (IRL)
UK Equity Inc 163.04 163.42 2.19 3.51
Strategic Japan Opportunities Fund ¥ 58706.00 - -1553.00 0.00 MoneyBuilder Growth Fund Y-INC-GBP £ 0.73 - 0.00 2.39 Marlborough Fd Managers Ltd (1200)F (UK)
Regulated Sterling Corporate Bond B Inc £ 0.32 - 0.00 3.06 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 137.82 137.82 -0.91 0.00
Strategic Beta Flex Fund € 1010.38 - 3.73 0.00 MoneyBuilder Income Fund Y-ACC-GBP £ 12.80 - 0.05 3.21 www.marlboroughfunds.com
Algebris Financial Credit Fund - Class I EUR € 149.43 - -0.53 0.00 UK Equity Acc 270.34 270.96 3.64 0.00
Strategic Bond B Acc £ 1.22 - 0.00 2.28 Authorised Inv Funds
Fixed Interest Inc 160.88 161.72 0.93 4.11 MoneyBuilder Income Fund Y-GACC-GBP £ 14.90 - -0.04 3.24 Global Investment House
Algebris Financial Income Fund - Class I EUR € 130.50 - -1.13 0.00
Strategic Bond B Inc £ 1.20 - 0.00 2.28 Balanced 189.81 200.07 -1.14 0.38
Global GCC Islamic Fund $ 105.24 - -1.77 0.00
Fixed Interest Acc 550.96 553.83 3.21 0.00 MoneyBuilder Income Fund Y-GINC-GBP £ 1.25 - 0.00 3.30 Natixis Investment Funds (UK)
Algebris Financial Equity Fund - Class B EUR € 107.89 - -1.47 0.00 Authorised Funds
UK Equity B Acc £ 2.88 - 0.00 2.31 Bond Income 50.11 52.89 0.06 3.36
Global GCC Large Cap Fund $ 163.83 - -2.56 0.00
Property Fund Inc 135.98 140.54 -1.73 5.46 MoneyBuilder Income Fund Y-INC-GBP £ 1.20 - 0.00 3.26
Algebris Asset Allocation Fund - Class B EUR € 98.18 - -0.05 0.00 DNCA European Select Equity Fund £ 0.92 - 0.00 0.86
UK Equity Absolute Return B Acc £ 1.12 - -0.01 0.00 Cautious Inc 88.55 93.23 -0.59 1.88
Global Saudi Equity Fund SR 246.87 - -6.33 0.00
Multi Asset Adventurous N-ACC-GBP £ 1.41 - -0.01 1.02
Algebris Macro Credit B EUR Acc € 101.84 - -0.36 0.00 Harris Global Concentrated Equity Fund £ 1.59 - 0.01 1.29
UK Equity Income B Acc £ 2.47 - 0.01 4.58 Defensive A Inc 113.44 113.44 0.02 0.10
Multi Asset Alloc Advent N-ACC-GBP £ 1.37 - 0.00 1.23
Algebris Core Italy Fund - Class R EUR € 89.95 - -0.94 - H2O MultiReturns Fund N/A (GBP) £ 1.55 - -0.02 1.25
CCLA Fund Managers Ltd (UK) UK Equity Income B Inc £ 1.69 - 0.00 4.71 Emerging Markets 286.74 286.74 0.30 1.17
Senator House 85 Queen Victoria Street London EC4V 4ET EdenTree Investment Management Ltd (UK) Multi Asset Alloc Def N-ACC-GBP £ 1.17 - 0.00 1.02 HPB Assurance Ltd Loomis Sayles U.S. Equity Leaders N/A (GBP) £ 2.50 - 0.02 0.12
Property & Other UK Unit Trusts PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 UK Opportunities B Acc £ 1.86 - 0.00 1.50 ETF Global Growth A 175.95 175.95 1.03 0.15
COIF Charity Funds (UK) Authorised Inv Funds Multi Asset Alloc Def N-GACC-GBP £ 1.18 - 0.00 1.02 International Insurances
The Antares European Fund Limited UK Smaller Companies B Acc £ 3.52 - -0.02 1.40 ETF Commodity A 88.09 88.09 -0.29 0.00
Investment Inc 1489.30 1495.32 6.73 2.46 Amity UK Cls A Inc 219.70 - 1.10 1.41 Multi Asset Alloc Growth N-ACC-GBP £ 1.26 - 0.00 1.12 Holiday Property Bond Ser 1 £ 0.54 - 0.00 0.00
Other International
European Multi-Cap 433.02 433.02 -2.31 0.77
AEF Ltd Usd (Est) $ 608.77 - -29.07 - Investment Acc 15910.67 15975.08 71.83 0.00 Amity UK Cls B Inc 220.10 - 1.20 2.19 Multi Asset Alloc Strat N-ACC-GBP £ 1.23 - 0.00 1.01 Holiday Property Bond Ser 2 £ 0.66 - 0.01 0.00
Extra Income 79.51 84.14 0.04 3.87
AEF Ltd Eur (Est) € 589.13 - -28.79 0.00 Ethical Invest Inc 227.95 228.87 0.97 2.51 Higher Income Cls A Inc 131.70 - 0.30 4.53 Multi Asset Balanced Inc N-GINC-GBP £ 1.11 - -0.01 4.08 Kames Capital Investment Portfolios ICVC (UK)
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA Far East Growth A Inc 209.06 209.06 -0.28 1.36
Ethical Invest Acc 326.70 328.02 1.40 0.00 Higher Income Cls B Inc 137.70 - 0.40 4.44 Multi Asset Balanced Inc N-INC-GBP £ 1.08 - 0.00 3.71 0800 358 3009 www.kamescapital.com
Haussmann Global 232.95 245.33 -1.94 0.00
Authorised Funds
Global Equity Inc 177.02 177.29 1.25 - UK Equity Growth Cls A Inc 268.90 - 1.00 0.98 Other International Funds
Multi Asset Defensive N-ACC-GBP £ 1.20 - -0.01 1.02
Arisaig Partners Property Income B Acc 133.23 133.23 0.05 4.38 Global Bond Inc 149.22 157.64 0.27 3.12 New Capital UCITS Fund PLC (IRL)
Haussmann Cls A $ 2806.79 - -108.08 0.00
Other International Funds Global Equity Acc 294.88 295.33 2.09 0.00 UK Equity Growth Cls B Inc 275.80 - 1.00 1.70 Multi Asset Defensive N-GACC-GBP £ 1.22 - 0.00 1.02 Leconfield House, Curzon Street, London, W1J 5JB
Property Income B Inc 108.43 108.43 0.04 4.49 High Yield Fixed Interest 72.46 76.85 -0.11 4.51 www.newcapitalfunds.com
Arisaig Africa Consumer Fund Limited $ 11.76 - -0.19 0.00 Haussmann Cls C € 2311.09 - -91.92 0.00
Fixed Interest Inc 133.20 133.89 1.18 2.50 Amity Balanced For Charities A Inc 107.80 - 0.40 5.21 Multi Asset Growth Fund N-ACC-GBP £ 1.31 - -0.01 1.04 FCA Recognised
Arisaig Asia Consumer Fund Limited $ 82.02 - -1.54 0.00 Haussmann Cls D SFr 1205.25 - -48.24 0.00 Multi Cap Income A Inc 145.00 145.00 -0.40 4.77
Fixed Interest Acc 849.31 853.73 7.54 0.00 Amity European Fund Cls A Inc 245.80 - 0.10 1.48 Euro Value Credit Fund - EUR Inst Acc € 99.23 - 0.01 0.00
Multi Asset Inc & Growth N-INC-GBP £ 1.10 - 0.01 3.87
Arisaig Global Emerging Markets Consumer Fund $ 10.23 - -0.18 0.00 Kames Capital VCIC (IRL) Nano-Cap Growth A Acc 160.8794 176.7900 77.6960 0.00
Property Inc 116.49 120.39 -1.57 5.49 Amity European Fund Cls B Inc 248.80 - 0.10 2.30 Asia Pacific Equity Income Fund - USD Ord Inc. $ 93.16 - -1.83 2.78
Multi Asset Income Fund N-GINC-GBP £ 1.08 - 0.00 4.12 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Arisaig Global Emerging Markets Consumer UCITS € 11.50 - -0.19 0.00 Special Situations A Acc 1585.38 1677.65 -9.30 0.34
Local Authorities Property Fd (LAMIT) (UK) Amity Global Equity Inc for Charities A Inc 124.90 - 0.00 3.31 FCA Recognised Dynamic European Equity Fund - EUR Ord Inc. € 173.06 - -3.16 2.75
Multi Asset Income Fund N-INC-GBP £ 1.05 - 0.00 4.01
Arisaig Global Emerging Markets Consumer UCITS STG £ 12.90 - -0.22 0.00 Property 298.97 324.17 -0.21 4.81 Absolute Return Bond B GBP Acc 1110.71 - -0.43 1.29 UK Multi-Cap Growth A Inc 314.27 332.56 -2.39 0.27
Amity International Cls A Inc 259.30 - 0.80 1.27 China Equity Fund - USD Ord Acc. $ 141.60 - -2.90 0.00
Fidelity Asia Fund W-ACC-GBP £ 12.05 - 0.02 0.75
Arisaig Latin America Consumer Fund $ 24.35 - -0.22 0.00 Eq Market Neutral B Acc 938.75 - -0.06 0.00 UK Micro Cap Growth A 678.30 717.78 -22.12 0.00
Amity International Cls B Inc 262.40 - 0.80 1.98 Global Value Credit Fund - USD Ord Acc. $ 182.47 - -0.05 0.00
Multi Asset Open Advent N-ACC-GBP £ 1.34 - -0.01 0.62
High Yield Global Bond A GBP Inc 507.72 - -1.33 3.36 US Multi-Cap Income 480.62 480.62 0.12 0.51
CG Asset Management Limited (IRL) Amity Sterling Bond Fund A Inc 103.10 - 0.10 4.15 Global Equity Conviction Fund - USD Ord Acc. $ 120.31 - -1.44 0.00
Multi Asset Open Defen N-ACC-GBP £ 1.20 - -0.01 1.04
25 Moorgate, London, EC2R 6AY MFM - Third Party Funds
Hermes Investment Funds Plc (IRL) High Yield Global Bond B GBP Inc 1071.08 - -2.74 4.01
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 Amity Sterling Bond Fund B Inc 113.40 - 0.10 4.15 Strategic Portfolio UCITS Fund - USD Inst Acc. $ 115.51 - -1.24 0.00
Multi Asset Open Defen N-GACC-GBP £ 1.23 - 0.00 1.03 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Junior Oils 82.98 87.81 -3.31 0.00
FCA Recognised Investment Grade Global Bd A GBP Inc 550.68 - -0.16 2.09
FCA Recognised Wealthy Nations Bond Fund - USD Inst Inc. $ 110.64 - 0.06 4.43
Multi Asset Open Growth N-ACC-GBP £ 1.29 - -0.01 1.20 Junior Gold C Acc 30.02 30.02 -0.11 0.00
Capital Gearing Portfolio Inc £ 32295.13 32295.13 330.10 0.71
Hermes Abs Return Credit Fund Class F Acc £ 1.25 1.25 0.00 0.00 Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03 0.00
Swiss Select Equity Fund - CHF Ord Acc.SFr 143.13 - -6.64 0.00
CG Portfolio Fund Plc Multi Asset Open Strat N-ACC-GBP £ 1.27 - 0.00 1.27 MFM Bowland 250.28 270.57 0.86 0.93
Edinburgh Partners Limited (IRL)
Hermes Abs Return Credit Fund Class F Acc USD € 1.92 1.92 -0.01 0.00 Kames Global Equity Income B GBP Acc 1621.68 - 0.92 0.00
27-31 Melville Street, Edinburgh EH3 7JF US Growth Fund - USD Ord Acc. $ 279.91 - -1.94 0.00
Absolute Return Cls M Inc £ 118.39 118.39 -0.58 1.23 Multi Asset Strategic N-ACC-GBP £ 1.28 - -0.01 1.20 MFM Hathaway Inc 134.23 140.56 -0.28 1.29
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Hermes Asia Ex-Japan Equity Fund Class C Acc GBP £ 2.48 2.48 0.01 0.00 Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19
Artemis Fund Managers Ltd (1200)F (UK)
FCA Recognised All Weather Fund - EUR Inst Acc € 97.47 - -0.34 0.00
Capital Value Cls V Inc £ 157.14 157.14 1.60 0.43 Open World Fund N-ACC-GBP £ 1.60 - -0.01 0.34 MFM Techinvest Special Situations Acc 188.18 188.18 -5.89 0.00
57 St. James's Street, London SW1A 1LD 0800 092 2051
Edinburgh Partners Opportunities Fund PLC Hermes Asia Ex-Japan Equity Fund Class C Acc USD € 4.36 4.36 0.01 0.00 Kames Global Diversified Growth Fund - B Acc EUR € 10.84 - -0.02 0.00
Authorised Inv Funds Dynamic UK Equity Fund - GBP Inst Acc. £ 104.48 - -2.01 0.00
Dollar Fund Cls D Inc £ 150.98 150.98 0.13 1.63 Special Situations Fund W-ACC-GBP £ 34.99 - 0.04 1.56 MFM Techinvest Technology Acc 517.66 517.66 -8.39 0.00
Emerging Opportunities I USD $ $ 1.25 - -0.02 1.47
Artemis Capital R ACC 1487.73 1495.62 3.63 1.59 Hermes Europe Ex-UK Equity Fund Class F Acc £ 1.95 1.95 0.00 0.00 Kames Global Equity Market Neutral Fund - B Acc GBP £ 9.81 - 0.01 0.00
US Small Cap Growth Fund - USD Inst Acc $ 136.00 - -1.31 0.00
Dollar Hedged GBP Inc £ 94.65 94.65 0.08 1.75 Sterling Core Plus Bond GMACC £ 12.17 - 0.07 2.29 MFM UK Primary Opportunities A Inc 407.97 407.97 -0.27 1.40
European Opportunities I EUR € 2.45 - -0.04 1.92
Artemis European Growth R Acc 298.61 299.21 -1.54 0.88 Hermes Europe Ex-UK Equity Fund Class F Acc EUR € 3.72 3.72 0.00 0.00 Global Sustainable Equity B Acc GBP £ 13.65 - -0.03 0.00
Global Alpha Fund - USD Ord Inc $ 103.10 - -0.44 0.90
Real Return Cls A Inc £ 193.58 193.58 0.03 2.16 Sterling Core Plus Red Dur £ 11.32 - 0.02 1.91
European Opportunities I GBP £ 2.16 - -0.04 1.67
Artemis European Opps R Acc 97.47 97.69 -0.24 0.72 Hermes European Alpha Equity Fund Class F Acc £ 1.65 1.65 0.00 0.00 Global Sustainable Equity C Acc GBP £ 13.74 - -0.03 0.00
Strategic Bond Fund Y-ACC-GBP £ 1.18 - 0.00 -
European Opportunities A EUR € 2.40 - -0.04 0.95 Marwyn Asset Management Limited (CYM)
Artemis Global Emg Mkts I GBP Acc 128.05 - -0.14 - Hermes European Alpha Equity Fund Class F Dis £ 1.54 1.54 0.00 1.21 Kames Absolute Return Bond Global Fund - B Acc GBP £ 10.29 - 0.00 0.00
Strategic Bond Fund Y-GACC-GBP £ 1.22 - 0.00 3.03 Regulated
Charles Schwab Worldwide Funds Plc (IRL) Global Opportunities I USD $ 1.85 - -0.03 1.38
Artemis Global Emg Mkts I GBP Dist 118.38 - -0.13 -
Regulated Asset Management Hermes European Alpha Equity Fund Class F Acc EUR € 3.24 3.24 0.01 0.00 Short Dated High Yld Bd B Acc GBP £ 10.10 - -0.01 0.00 Marwyn Value Investors £ 421.74 - -18.49 0.00

Artemis Global Energy R Acc 33.72 33.83 -0.45 0.50 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.79
Global Opportunities I GBP £ 1.43 - -0.02 1.11
Strategic Bond Fund Y-GINC-GBP £

Strategic Bond Fund Y-INC-GBP £

1.24

1.19
-

-
-0.01 2.70

0.00 -
Hermes GEMs SMID Equity Fund Class F GBP Acc £ 0.99 - 0.00 - Asset Management
Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.15 - -0.01 0.00 Asset Management
Pan European Opportunities I EUR € 1.76 - -0.02 -
Artemis Global Growth R Acc 256.51 257.00 1.21 0.87 Hermes Global Emerging Markets Fund Class F Acc £ 1.78 1.78 0.00 0.00 Strategic Global Bond A GBP Inc 1097.73 - -1.07 1.65
Target 2020 A-ACC-GBP £ 0.66 - 0.00 0.45 McInroy & Wood Portfolios Limited (UK)
Artemis Global Income R Acc 123.53 123.79 -0.49 2.85 Hermes Global Emerging Markets Fund Class F Acc USD € 3.67 3.67 0.00 0.00 Strategic Global Bond B GBP Inc 623.44 - -0.61 2.30 Easter Alderston, Haddington, EH41 3SF 01620 825867
Chartered Asset Management Pte Ltd Target 2025 A-ACC-GBP £ 1.64 - 0.01 0.50 Northwest Investment Management (HK) Ltd
Authorised Inv Funds
Other International Funds 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9331 9220
Artemis Global Income R Inc 90.02 90.21 -0.36 2.92 Electric & General (1000)F (UK) Hermes Global Equity Fund Class F Acc £ 2.27 2.27 0.00 0.00
Target 2030 A-ACC-GBP £ 1.85 - 0.00 0.56 Balanced Fund Personal Class Units 4708.50xd - 0.30 1.38 Other International Funds
CAM-GTF Limited $ 271666.43 271666.43 -31.20 0.00 Stuart House St.John's Street Peterborough PE1 5DD
Artemis Global select R Acc 103.74 103.90 0.83 0.00 Orders & Enquiries: 0845 850 0255 Hermes Global Equity Fund Class R Acc USD € 4.84 4.84 0.00 0.00 Northwest China Opps Class T $ $ 2766.20 - -9.89 0.00
UK Invest Grade Long Credit GACC £ 115.70 - 0.70 2.43 Kleinwort Hambros Bank Limited (UK) Income Fund Personal Class Units 2506.00xd - 3.80 2.78
CAM GTi Limited $ 600.11 - -3.89 0.00 Authorised Inv Funds 5TH Floor, 8 St James's Square, London, SW1Y 4JU
Artemis High Income R Inc 75.71 76.26 -0.05 5.88 Hermes Global ESG Equity Fund Class F Acc £ 1.69 1.69 0.00 0.00 Northwest Feilong Class T $ $ 1699.64 - 0.12 0.00
Authorised Corporate Director - Carvetian Capital Management UK Opportunities Fund W-ACC-GBP 217.30 - -0.70 1.26 Dealing and enquiries: 033 0024 0785 Emerging Markets Fund Personal Class Units 1959.20xd - 16.40 1.73
Raffles-Asia Investment Company $ 1.50 1.50 -0.02 1.32 Authorised Inv Funds
Artemis Income R Acc 403.00 405.13 0.69 4.02 Electric&General Net Income A 198.80 - 1.40 1.23 Hermes Global High Yield Credit Fund Class F Acc £ 1.46 1.46 0.00 0.00 Northwest Fund Class T $ $ 2502.13 - -8.83 0.00
UK Opportunities Fund W-INC-GBP 120.50 - -0.40 1.31 Unit Trust Manager/ACD - Host Capital Smaller Companies Fund Personal Class Units 5264.90xd - -34.00 0.98
Artemis Income R Inc 212.83 213.96 0.36 4.14 Hermes Global High Yield Credit Fund Class F Acc EUR € 3.08 3.08 -0.01 0.00 Northwest Warrant Class A $ $ 1969.35 - -444.40 0.00
UK Select Fund W-ACC-GBP £ 2.79 - 0.01 1.64 HC Kleinwort Hambros Growth A Acc 199.12 - -0.40 1.36
Artemis Monthly Dist R Inc 67.66 68.04 -0.15 4.16 Cheyne Capital Management (UK) LLP Hermes Global Small Cap Fund Class F Acc £ 1.50 1.50 0.00 0.00
Ennismore Smaller Cos Plc (IRL) UK Smaller Companies W-ACC-GBP £ 2.43 - -0.01 1.31 HC Kleinwort Hambros Growth A Inc 180.95 - -0.37 1.38
Other International Funds
5 Kensington Church St, London W8 4LD 020 7368 4220
Emerging Markets Managed Accounts PLC (IRL)
Artemis Pan-Euro Abs Ret GBP 123.36 - -0.14 - Hermes Global Small Cap Fund Class F Acc USD € 2.17 2.17 -0.01 0.00
Cheyne European Event Driven Fund (M) € 144.16 - -0.70 - HC Kleinwort Hambros Equity Income A Inc 105.26 - -1.50 3.06 emma@milltrust.com, +44(0)20 8123 8369, www.milltrust.com
FCA Recognised WealthBuilder Fund N-ACC-GBP £ 1.55 - -0.01 1.21
Hermes Impact Opportunities Equity Fund F $ 1.85 - -0.01 - Regulated
Artemis Strategic Assets R Acc 82.20 82.72 -0.02 0.00 price updated (D) daily, (W) weekly, (M) monthly Ennismore European Smlr Cos NAV £ 128.92 - -0.74 0.00 Institutional OEIC Funds HC Kleinwort Hambros Equity Income A Acc 175.66 - -2.50 4.00
Milltrust ASEAN A $ 102.90 - 0.91 0.00
Artemis Strategic Bond R M Acc 94.95 95.54 -0.03 3.42 America £ 5.96 - 0.04 0.31 Hermes Impact Opportunities Equity Fund F £ 0.97 - 0.00 -
Ennismore European Smlr Cos NAV € 145.96 - -0.69 0.00 HC Kleinwort Hambros Multi Asset Balanced A Acc 155.80 - -0.92 0.81
Milltrust India A $ 149.04 - -1.83 0.00
Artemis Strategic Bond R M Inc 55.63 55.97 -0.01 3.48 Emerging Markets £ 4.10 - 0.01 0.94 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.13 1.13 0.00 0.00
Consistent Unit Tst Mgt Co Ltd (1200)F (UK) HC Kleinwort Hambros Multi Asset Balanced A Inc 147.24 - -0.88 0.81
Milltrust Latin America A $ 106.98 - 0.16 0.00
Artemis Strategic Bond R Q Acc 95.12 95.72 -0.03 3.39 Stuart House, St John's Street, Peterborough, PE1 5DD Europe (ex-UK) Fund ACC-GBP £ 5.07 - 0.03 1.17 Hermes SDG Engagement Equity Fund F $ 1.99 - 0.00 -
Dealing & Client Services 0345 850 8818 HC Kleinwort Hambros Fixed Income A Acc 128.61 - 0.05 3.44 Oasis Crescent Management Company Ltd
Ennismore European Smlr Cos Hedge Fd Milltrust Keywise China Fund $ 124.10 - 0.58 0.00
Other International Funds
Artemis Strategic Bond R Q Inc 55.57 55.91 -0.01 3.46 Authorised Inv Funds Other International Funds Fidelity Pre-Retirement Bond Fund £ 137.90 - 0.50 2.23 Hermes SDG Engagement Equity Fund F £ 1.03 - 0.01 -
HC Kleinwort Hambros Fixed Income A Inc 108.18 - 0.04 3.44
Consistent UT Inc 46.50 47.46 -0.19 3.10 Milltrust SEDCO MENA Fund (Class A) * $ 97.99 - 0.63 0.00 Oasis Crescent Equity Fund R 10.42 - -0.02 0.00
Artemis UK Select Fund Class R Acc 482.14 485.23 2.65 1.15 NAV € 539.70 - -2.45 0.00 Global Focus £ 4.31 - 0.02 0.52 Hermes Unconstrained Credit Fund Class F USD Acc $ 2.01 - -0.01 -
Consistent UT Acc 121.30 123.80 -0.50 3.10
Artemis UK Smaller Cos R Acc 1605.44 1639.95 -6.10 1.22 Index Linked Bond £ 3.26 - 0.02 0.33 Hermes US SMID Equity Fund Class F Acc £ 2.42 2.42 -0.02 0.00
Practical Investment Inc 219.50 234.40 0.20 3.37 Link Asset Services (UK)
Artemis UK Special Sits R Acc 540.93 545.05 2.78 1.54 Index Linked Bond Gross £ 3.98 - 0.02 0.34 Hermes US SMID Equity Fund Class F Acc USD € 4.20 4.20 -0.02 0.00 Milltrust International Managed Investments ICAV (IRL) Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Equinox Fund Mgmt (Guernsey) Limited (GSY) 65 Gresham Street, London, EC2V 7NQ
mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com Regulated
Practical Investment Acc 1188.00 1269.00 1.00 3.37 Regulated Order Desk and Enquiries: 0345 922 0044
Artemis US Abs Ret I Acc 113.69 - -0.26 - Japan £ 2.94 - 0.00 0.33 Regulated Oasis Crescent Global Investment Fund (Ireland) plc
Authorised Inv Funds
Equinox Russian Opportunities Fund Limited $ 165.52 - 3.64 0.00
MAI - Buy & Lease (Australia) A$ 99.42 - -0.58 - Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.98 - 0.00 -
Artemis US Equity I Acc 188.62 - 1.61 0.13 Long Bond £ 0.56 - 0.01 2.04 LF Heartwood Balanced MA B Acc X 142.61 - -0.62 0.63
Hermes Property Unit Trust (UK)
Property & Other UK Unit Trusts MAI - Buy & Lease (New Zealand)NZ$ 98.95 - -0.49 0.00 Oasis Crescent Global Equity Fund $ 29.99 - -0.13 0.69
Artemis US Ex Alpha I Acc 204.97 - 1.42 - DAVIS Funds SICAV (LUX) Long Bond Gross £ 0.98 - 0.01 2.02 LF Heartwood Cautious MA B Acc X 138.62 - -0.04 0.74
Regulated Property £ 6.71 7.22 0.07 2.75 British Innovation Fund £ 98.71 - -1.03 -
Artemis US Extended Alpha I Hedged Acc £ 1.39 - 0.00 - Euronova Asset Management UK LLP (CYM) Oasis Crescent Variable Balanced Fund £ 9.58 - -0.09 0.15
Long Bond Fund Gross Inc £ 12.70 - -0.08 2.16 LF Heartwood Defensive MA B Acc 113.80 - -0.11 0.24
Davis Value A $ 50.66 - -0.45 0.00 Regulated
EICM South Asia Hospitality 1 $ 101.98 - 4.50 - OasisCresGl Income Class A $ 10.35 - 0.01 2.86
Artemis US Select I Acc 193.36 - 1.27 0.07 Pacific (Ex Japan) £ 4.69 - -0.01 1.86 LF Heartwood Growth MA B Acc X 171.48 - -0.81 0.34
Davis Global A $ 35.67 - -0.67 0.00 Smaller Cos Cls One Shares € 43.71 - 0.51 0.00
Milltrust Global Emerging Markets Fund - Class A $ 80.55 - 0.16 - OasisCresGl LowBal D ($) Dist $ 11.89 - -0.03 0.16
Artemis US Select I Hedged Acc £ 1.40 - 0.00 -
Smaller Cos Cls Two Shares € 29.42 - 0.35 0.00
Pan European £ 4.35 - 0.01 1.50 INDIA VALUE INVESTMENTS LIMITED (INVIL) LF Heartwood Income MA B Inc X 108.63 - -0.18 3.75
www.invil.mu
Artemis US Select I Inc 171.65 - 1.13 0.07 OasisCresGl Med Eq Bal A ($) Dist $ 12.60 - -0.05 0.45
Select Emerging Markets Equities £ 1.69 - 0.00 0.80 Other International Funds LF Heartwood Income Plus MA B Inc X 113.56 - -0.47 4.62
Smaller Cos Cls Three Shares € 14.91 - 0.16 0.00
Artemis US Smlr Cos I Acc 219.98 - 0.70 0.00 NAV £ 7.86 - -0.02 0.00 Oasis Crescent Gbl Property Eqty $ 8.92 - -0.06 1.93
Select Global Equities £ 4.23 - 0.01 0.92 LF Seneca Diversified Growth A Acc 265.68 - 0.08 2.63 Ministry of Justice Common Investment Funds (UK)
Smaller Cos Cls Four Shares € 19.14 - 0.18 0.00
Property & Other UK Unit Trusts
South East Asia £ 5.22 - 0.01 1.50 LF Seneca Diversified Growth B Acc 160.17 - 0.05 3.28
The Equity Idx Tracker Fd Inc 1636.00 1636.00 -8.00 2.65
Sterling Core Plus Bond Gr Accum £ 2.47 - 0.01 2.37 Intrinsic Value Investors (IVI) LLP (IRL) LF Seneca Diversified Growth I Acc 97.00 - 0.03 0.00 Distribution Units
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Sterling Core Plus Bond Inc £ 1.50 - 0.01 2.41 LF Seneca Diversified Growth N Acc 157.45 - 0.05 3.03
Dodge & Cox Worldwide Funds (IRL) FCA Recognised
6 Duke Street,St.James,London SW1Y 6BN UK £ 4.03 - 0.02 2.19 IVI European Fund EUR € 20.82 - -0.39 0.00 LF Seneca Diversified Income A Inc 89.64 - 0.06 5.14
www.dodgeandcox.worldwide.com 020 3713 7664
Mirabaud Asset Management (LUX)
UK Aggreg Bond Gr Accum £ 2.08 - 0.01 2.06 LF Seneca Diversified Income B Inc 107.98 - 0.08 5.12 www.mirabaud.com, marketing@mirabaud-am.com
FCA Recognised IVI European Fund GBP £ 24.61 - -0.51 0.00
Conviction based investment vehicles details available here www.mirabaud-am.com
Dodge & Cox Worldwide Funds plc - Global Bond Fund
Ashmore Investment Management Limited (LUX) UK Corporate Bond £ 1.29 - 0.01 2.57 LF Seneca Diversified Income I Inc 97.40 - 0.07 0.00 Regulated Odey Asset Management LLP (UK)
EUR Accumulating Class € 12.75 - -0.02 0.00 FIL Investment Services (UK) Limited (1200)F (UK) 65 Gresham Street, London, EC2V 7NQ
2 rue Albert Borschette L-1246 Luxembourg Mir. - Glb Strat. Bd I USD $ 109.04 - -0.13 0.00
130, Tonbridge Rd, Tonbridge TN11 9DZ UK Corporate Bond - Gross £ 2.60 - 0.01 2.52 Order Desk and Enquiries: 0345 300 2106
FCA Recognised LF Seneca Diversified Income N Inc 106.31 - 0.08 5.13
EUR Accumulating Class (H) € 9.89 - -0.02 0.00 Callfree: Private Clients 0800 414161 Janus Henderson Investors (UK) Authorised Inv Funds
Ashmore SICAV Emerging Market Debt Fund $ 93.01 - -0.16 4.95 Broker Dealings: 0800 414 181 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Investment Adviser - Morant Wright Management Limited Mir. - EqPanEuropeSm&Mid £ 139.18 - -4.92 0.00
UK Corporate Bond Fund Gross Inc £ 11.77 - 0.02 2.85 Authorised Corporate Director - Link Fund Solutions
EUR Distributing Class € 10.87 - -0.02 3.83 OEIC Funds www.janushenderson.com LF Morant Wright Japan A Acc X 388.75 - 2.73 0.08
Ashmore SICAV Emerging Market Frontier Equity Fund $ 157.27 - -0.64 0.76 Mirabaud - UK Equity High Alpha £ 115.30 - -1.31 0.00 LF Odey Continental European GBP R Acc 1018.87 - 1.46 0.61
UK Gilt Fund Inc £ 1.35 - 0.00 1.52 Authorised Inv Funds
EUR Distributing Class (H) € 8.43 - -0.01 3.96 Allocator World Fund N-ACC-GBP £ 1.64 - -0.01 0.99
LF Morant Wright Japan A Inc X 379.37 - 2.67 0.36
Ashmore SICAV Emerging Market Total Return Fund $ 82.45 - -0.27 4.83 UK Gilt Gross £ 2.26 - 0.01 1.50 Janus Henderson Asia Pacific Capital Growth Fund A Acc 1003.00 - 3.70 0.03 LF Odey Opus GBP R Inc 4539.42 - 6.75 0.00
GBP Distributing Class £ 11.68 - -0.04 3.86 American Fund W-ACC-GBP £ 40.89 - 0.26 0.34
LF Morant Wright Japan B Acc X 419.70 - 2.96 0.88
Ashmore SICAV Global Small Cap Equity Fund $ 131.37 - -3.22 0.66 UK Long Corp Bond £ 1.50 - 0.01 2.87 Janus Henderson Asian Dividend Income Unit Trust Inc 98.58 103.56 0.55 5.80 LF Odey Absolute Return GBP R 291.23 - 2.64 0.00
GBP Distributing Class (H) £ 8.74 - -0.02 3.58 American Special Sits W-ACC-GBP £ 15.56 - 0.09 0.53
LF Morant Wright Japan B Inc X 385.61 - 2.72 0.90
EM Active Equity Fund Acc USD $ 118.16 - -1.96 0.00 UK Long Corp Bond - Gross £ 2.99 - 0.01 2.81 Janus Henderson Cautious Managed Fund A Acc 257.80 - 0.90 3.41 LF Odey Portfolio Fund GBP R Inc 154.92 - -0.56 0.00
USD Accumulating Class $ 10.55 - -0.01 0.00 Asia Pacific Ops W-Acc £ 1.73 - 0.01 1.05
LF Morant Wright Nippon Yield A Acc X 410.67 - 2.83 2.47
EM Equity Fund Acc USD $ 87.74 - -1.67 - UK Long Corporate Bond - Gross Inc £ 12.23 - 0.04 2.99 Janus Henderson Cautious Managed Fund A Inc 145.80 - 0.50 3.49
Dodge & Cox Worldwide Funds plc-Global Stock Fund Cash Fund Y-Acc-GBP £ 1.01 - 0.00 0.20
Retail Share Classes LF Morant Wright Nippon Yield A Inc X 334.55 - 2.31 2.51
EM Mkts Corp.Debt USD F $ 93.36 - -0.07 5.44 USD Accumulating Share Class $ 20.75 - -0.16 0.00 Janus Henderson China Opportunities Fund A Acc 1233.00 - -7.00 0.48
Cash Fund Y-Inc-GBP £ 1.00 - 0.00 0.35 Odey Asset Management LLP (CYM)
Emerging Markets - retail £ 1.60 - 0.00 0.30 LF Morant Wright Nippon Yield B Acc X 432.04 - 2.99 2.46 Regulated
EM Mkts Loc.Ccy Bd USD F $ 76.69 - -0.45 5.77 GBP Accumulating Share Class £ 26.29 - -0.24 0.00 Janus Henderson Emerging Markets Opportunities Fund A Acc 185.80 - 1.20 0.32
Asian Dividend Fund W-ACC-GBP £ 1.72 - 0.01 2.18 {*}CAR - Net income reinvested
LF Morant Wright Nippon Yield B Inc X 352.05 - 2.44 2.50 OEI Mac Inc GBP A £ 210.30 - 12.46 0.00
EM Short Duration Fund Acc USD $ 137.58 - -0.06 0.00 GBP Distributing Share class £ 18.68 - -0.17 0.92 Janus Henderson European Growth Fund A Acc 215.20 - -1.00 0.74
Asian Dividend Fund W-INC-GBP £ 1.49 - 0.01 3.17
OEI Mac Inc GBP B £ 127.58 - 6.97 0.00
EUR Accumulating Share Class € 27.17 - -0.22 0.00 Janus Henderson European Selected Opportunities Fund A Acc 1551.00 - 0.00 0.34
24 ★ FINANCIAL TIMES Thursday 25 October 2018

MANAGED FUNDS SERVICE

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

OEI MAC Inc USD $ 1126.94 - 67.50 0.00 Pictet-EUR Bonds-I F € 575.00 - 0.51 0.00 Global Technology I USD $ 42.96 - -0.35 0.00 RobecoSAM S.HealthyLiv/N € 183.60 - -1.82 0.00 Investments IV - Global Private Eq. € 170.83 - -3.11 0.00 Data Provided by
Odey European Inc EUR € 486.63 - 28.74 0.00 Pictet-EUR Corporate Bonds-I F € 209.26 - 0.04 0.00 Healthcare Blue Chip Fund I USD Acc $ 12.70 12.70 -0.13 0.00 RobecoSAM S.HealthyLiv/Na £ 138.03 - -1.50 1.24

Odey European Inc GBP A £ 195.90 - 11.50 0.00 Pictet-EUR Government Bonds I EUR € 160.57 - 0.12 0.00 Healthcare Opps I USD $ 48.79 - -0.07 0.00 RobecoSAM S.Water/A £ 225.75 - -3.26 1.38
Unicorn Asset Management Ltd (UK)
Odey European Inc GBP B £ 111.06 - 6.53 0.00 Pictet-EUR High Yield-I F € 270.36 - -0.37 0.00 Income Opportunities B2 I GBP Acc £ 2.17 2.17 -0.02 0.00 RobecoSAM S.Water/N € 193.45 - -2.60 0.00 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
Authorised Inv Funds www.morningstar.co.uk
Odey European Inc USD $ 235.90 - 14.01 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 136.31 - -0.04 0.00 Japan Alpha I JPY ¥ 245.59 245.59 -0.54 0.00
UK Growth A Inc 562.57 - -6.63 0.67 Data as shown is for information purposes only. No
Pictet-EUR Short Term HY I EUR € 126.91 - -0.08 0.00 Japan I JPY ¥ 2359.81 - 0.76 0.00 Robeco Asset Management (LUX) Toscafund Asset Management LLP (UK) offer is made by Morningstar or this publication.
Mastertrust A Inc X F 494.23 - -1.28 0.23
Weena 850, 3014 DA Rotterdam, The Netherlands www.toscafund.com
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 101.20 - 0.00 0.00 North American I USD $ 23.51 23.51 -0.19 0.00 www.robeco.com/contact Authorised Funds
Odey Asset Management LLP (IRL) UK Growth B Inc 563.84 - -6.63 1.26
FCA Recognised FCA Recognised
Pictet-Euroland Index IS EUR € 142.75 - -2.54 0.00 UK Absolute Equity I GBP £ 20.97 20.97 -0.13 0.00 Aptus Global Financials B Acc £ 3.75 - -0.06 4.72
Rubrics Global UCITS Funds Plc (IRL) Mastertrust B Inc X F 443.12 - -1.14 0.87
Odey Pan European EUR R € 337.75 - -3.07 0.00 Asia-Pacific Equities (EUR) € 152.99 - -0.08 0.00
Pictet-Europe Index-I EUR F € 179.55 - -2.71 0.00 UK Val Opp I GBP Acc £ 10.74 10.74 -0.09 0.00 www.rubricsam.com Aptus Global Financials B Inc £ 2.85 - -0.04 4.91
Outstanding British Cos A Acc X F 294.82 - -1.37 0.70
BP US Premium Equities (EUR) € 216.66 - -2.18 0.00 Regulated
Guide to Data
Odey Allegra International EUR O € 186.45 - -2.34 0.00
Pictet-European Equity Selection-I EUR F € 717.05 - 1.07 0.00
Rubrics Emerging Markets Fixed Income UCITS Fund $ 134.03 - -0.17 0.00 Outstanding British Cos B Acc X F 314.40 - -1.45 1.32
Odey Allegra Developed Markets USD I $ 156.94 - -1.30 0.00 BP US Premium Equities (USD) $ 256.38 - -2.49 0.00
Pictet-European Sust Eq-I EUR F € 251.72 - 1.70 0.00
Polar Capital LLP (CYM) Rubrics Global Credit UCITS Fund $ 15.98 - -0.01 0.00 Toscafund Asset Management LLP UK Smaller Cos A Inc X F 509.95 - -3.05 1.16
Odey European Focus Fund € 19.79 - -0.27 0.00 Chinese Equities (EUR) € 81.51 - -0.04 0.00
Regulated www.toscafund.com The fund prices quoted on these pages are supplied by
Pictet-Global Bds Fundamental I USD $ 123.23 - 0.09 0.00
Rubrics Global Fixed Income UCITS Fund $ 162.94 - 0.10 0.00 Other International Funds UK Smaller Cos B Inc X F 498.01 - -2.97 1.81 the operator of the relevant fund. Details of funds
Odey Odyssey USD I $ 100.43 - 2.21 0.00 European Forager A EUR € 190.61 - -1.15 0.00 Em Stars Equities (EUR) € 198.09 - -1.60 0.00
published on these pages, including prices, are for the
Pictet-Global Bonds-I EUR € 165.65 - 0.59 0.00 Tosca A USD $ 348.22 - -19.05 -
Q Rubrics India Fixed Income UCITS Fund $ 10.00 - -0.01 0.00 UK Income A Acc X F 280.17 - -2.34 4.04 purpose of information only and should only be used
Odey Swan Fund EUR I € 55.45 - -0.03 0.00 Emerging Markets Equities (EUR) € 170.79 - -1.05 0.00 as a guide. The Financial Times Limited makes no
Pictet-Global Defensive Equities I USD $ 169.87 - -2.64 0.00 Tosca Mid Cap GBP £ 310.16 - 3.45 - representation as to their accuracy or completeness
Rubrics India Fixed Income UCITS Fund $ 86.21 - -0.06 0.00 UK Income A Inc X F 221.58 - -1.86 4.15
Odey Absolute Return Focus Fund $ 99.38 - 3.57 0.00 Glob.Consumer Trends Equities (EUR) € 206.26 - -1.47 0.00 and they should not be relied upon when making an
Pictet-Global Emerging Debt-I USD F $ 390.81 - 0.89 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
Tosca Opportunity B USD $ 459.95 - 7.23 - UK Income B Acc X F 304.08 - -2.54 4.02 investment decision.
Regulated High Yield Bonds (EUR) € 142.50 - -0.37 0.00
Pictet-Global Env.Opport-I EUR € 187.56 - 3.27 0.00 Pegasus Fund Ltd A-1 GBP £ 70.91 - -3.34 0.00 The sale of interests in the funds listed on these pages
Monument Growth 23/10/2018 £ 485.88 491.31 0.06 3.06 UK Income B Inc X F 240.62 - -2.01 4.12
New World Financials (EUR) € 65.58 - -0.38 0.00 Scottish Friendly Asset Managers Ltd (UK) may, in certain jurisdictions, be restricted by law and
Odey Wealth Management (CI) Ltd (IRL) Pictet-Global Megatrend Selection-I USD F $ 274.78 - -5.08 0.00 Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 the funds will not necessarily be available to persons
www.odey.com/prices Authorised Inv Funds in all jurisdictions in which the publication circulates.
FCA Recognised Pictet-Global Sust.Credit HI EUR € 147.23 - 0.04 0.00 Persons in any doubt should take appropriate
Prusik Investment Management LLP (IRL) Managed Growth ♦ 263.10 - 0.80 0.00 Value Partners Hong Kong Limited (IRL) professional advice. Data collated by Morningstar. For
Odey Opportunity EUR I € 237.40 - -1.59 0.00 Pictet-Greater China-I USD F $ 550.45 - 1.48 0.00 RLUM Ltd (UK)
www.valuepartners-group.com, fis@vp.com.hk other queries contact reader.enquiries@ft.com +44
Enquiries - 0207 493 1331
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 UK Growth ♦ 290.90 - 0.30 0.00 (0)207 873 4211.
Regulated Regulated
Pictet-Health-I USD $ 304.96 - 3.07 0.00 Authorised Inv Funds
Prusik Asian Equity Income B Dist $ 180.76 - -0.83 4.00 Value Partners Asia ex-Japan Equity Fund USD V Acc Unhedged $ 9.04 - -0.23 - The fund prices published in this edition along with

Slater
Royal London Sustainable Diversified A Inc £ 1.87 - 0.01 1.05
Pictet-SmartCity-I EUR € 166.58 - 1.99 0.00 additional information are also available on the
Omnia Fund Ltd Value Partners Classic Equity Fund USD Z Unhedged $ 13.18 - -0.37 0.00 Financial Times website, www.ft.com/funds. The
Prusik Asia A $ 238.45 - -2.76 0.00
Other International Funds Royal London Sustainable World A Inc 229.80 - -0.60 0.30

Investments
Pictet-India Index I USD $ 106.25 - -1.38 0.00 funds published on these pages are grouped together
TreeTop Asset Management S.A. (LUX) Value Partners Classic Equity Fund CHF HedgedSFr 12.56 - -0.36 0.00 by fund management company.
Estimated NAV $ 964.15 - 18.05 0.00 Prusik Asian Smaller Cos A $ 132.74 - 0.07 0.00
Royal London Corporate Bond Mth Income 90.47 91.85 0.19 3.88 Regulated
Pictet-Indian Equities-I USD F $ 508.51 - 4.78 0.00
TreeTop Convertible Sicav Value Partners Classic Equity Fund EUR Hedged € 12.81 - -0.37 0.00 Prices are in pence unless otherwise indicated. The
Royal London European Growth Trust 150.20 152.50 -0.10 0.00 change, if shown, is the change on the previously
Pictet-Japan Index-I JPY F ¥ 17982.90 - 0.89 0.00 International AH € 252.42 - -3.12 0.00
Value Partners Classic Equity Fund GBP Hedged £ 13.41 - -0.38 0.00 quoted figure (not all funds update prices daily). Those
Purisima Investment Fds (UK) (1200)F (UK) Royal London Sustainable Leaders A Inc 548.40 - 1.60 1.14 designated $ with no prefix refer to US dollars. Yield
Pictet-Japanese Equities Opp-I JPY F ¥ 11069.56 - 6.93 0.00 International BH $ 343.42 - -4.24 0.00
65 Gresham Street, London, EC2V 7NQ Value Partners Classic Equity Fund GBP Unhedged £ 16.51 - -0.50 0.00 percentage figures (in Tuesday to Saturday papers)
Royal London UK Growth Trust 526.30 534.30 0.80 1.53 Slater Investments Ltd (UK)
allow for buying expenses. Prices of certain older
Pictet-Japanese Equity Selection-I JPY F ¥ 15990.34 - -22.79 0.00 Order Desk and Enquiries: 0345 922 0044 www.slaterinvestments.com; Tel: 0207 220 9460 International CH £ 103.59 - -1.29 3.41 insurance linked plans might be subject to capital
Authorised Inv Funds Value Partners Classic Equity USD Unhedged $ 16.09 - -0.46 0.00
Royal London UK Income With Growth Trust 211.50 214.70 0.50 4.63 FCA Recognised gains tax on sales.
Pictet-LATAM Lc Ccy Dbt-I USD F $ 133.33 - -0.90 0.00 Authorised Corporate Director - Link Fund Solutions International DH € 214.71 - -2.66 3.29
Slater Growth 471.41 498.52 -4.05 0.00 Value Partners Global Emerging Market Bond Fund USD A Acc Unhedged $ 10.10 - -0.02 0.00
Global Total Fd PCG A 247.53 - -0.02 0.53 Royal London US Growth Trust 224.10 227.60 2.60 0.00 Guide to pricing of Authorised Investment Funds:
Pictet-Multi Asset Global Opportunities-I EUR € 121.40 - -0.37 0.00 TreeTop Global Sicav
(compiled with the assistance of the IMA. The
Additional Funds Available Slater Income A Inc 145.87 145.87 -0.69 0.00 Value Partners Global Emerging Market Equity Fund USD V Unhedged $ 9.29 - -0.20 0.00
Optima Fund Management Global Total Fd PCG B 245.22 - -0.03 0.30 Global Opp.AH € 133.51 - -2.54 0.00 Investment Management Association, 65 Kingsway,
Other International Funds Pictet-Nutrition-I EUR € 219.99 - 2.50 0.00 Please see www.royallondon.com for details London WC2B 6TD.
Slater Recovery 227.98 241.89 -2.41 0.00 Value Partners Greater China Equity Fund USD A (Acc) Unhedged $ 9.97 - -0.27 0.00 Tel: +44 (0)20 7831 0898.)
Global Total Fd PCG INT 241.96 - -0.03 0.06 Global Opp.B $ 138.17 - -2.62 0.00
Cuttyhunk Fund II Limited $ 1785.98 - -55.65 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 397.77 - -8.05 0.00
Slater Artorius 190.54 190.54 -3.97 0.23 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 11.50 - -0.13 0.00 OEIC: Open-Ended Investment Company. Similar to a
Global Opp.C £ 194.65 - -3.68 0.00
JENOP Global Healthcare Fund Ltd $ 17.66 - -1.16 0.00 Pictet-Premium Brands-I EUR F € 171.34 - 3.63 0.00 unit trust but using a company rather than a trust
Ruffer LLP (1000)F (UK)
Value Partners Health Care Fund USD Class A Unhedged $ 11.71 - -0.13 0.00
65 Gresham Street, London, EC2V 7NQ Sequoia Equity AH € 124.05 - -2.20 0.00 structure.
OPTIKA Fund Limited - Cl A $ 156.18 - -5.67 0.00 Pictet-Russia Index I USD $ 74.32 - -0.77 0.00
Purisima Investment Fds (CI) Ltd (JER) Order Desk and Enquiries: 0345 601 9610
Different share classes are issued to reflect a different
Optima Fd NAV $ 96.07 - 0.00 0.00 Pictet-Russian Equities-I USD F $ 72.66 - -1.03 0.00
Regulated Authorised Inv Funds Standard Life Wealth (JER) Sequoia Equity B $ 133.72 - -2.46 0.00
currency, charging structure or type of holder.
Authorised Corporate Director - Link Fund Solutions PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
PCG B X 209.24 - -1.55 0.00
Optima Discretionary Macro Fund Limited $ 86.88 - -1.10 0.00 Pictet-Security-I USD F $ 253.96 - 3.05 0.00 FCA Recognised Sequoia Equity C £ 159.92 - -2.94 3.53 WA Fixed Income Fund Plc (IRL)
Selling price: Also called bid price. The price at which
LF Ruffer European C Acc 562.84 - -16.29 0.21 Regulated
PCG C X 205.28 - -1.53 0.00 Standard Life Offshore Strategy Fund Limited units in a unit trust are sold by investors.
The Dorset Energy Fd Ltd NAV $ 24.00 - 0.00 0.00 Pictet-Select-Callisto I EUR € 100.79 - -0.21 0.00 European Multi-Sector € 113.93 - -0.03 3.57
LF Ruffer European C Inc 103.54 - -3.00 0.27 Bridge Fund £ 1.8044 - 0.0025 2.09 Buying price: Also called offer price. The price at
Platinum Fd Ltd $ 100.15 - 0.00 0.00 Pictet-Small Cap Europe-I EUR F € 1206.92 - 2.96 0.00 which units in a unit trust are bought by investors.
LF Ruffer European O Acc 552.43 - -16.02 0.00 Global Equity Fund £ 2.3420 - 0.0003 1.22 Includes manager’s initial charge.
Platinum Fd Ltd EUR € 18.09 - 0.00 0.00 Pictet-ST Emerg Local Currency Debt-I USD F $ 100.13 - -0.50 0.00 LF Ruffer Equity & General C Acc 441.19 - -4.65 0.10 Global Fixed Interest Fund £ 0.9378 - -0.0016 4.81 Single price: Based on a mid-market valuation of the
Yapi Kredi Asset Management (TUR)
Platinum Japan Fd Ltd $ 63.25 - 0.00 0.00 Pictet-ST.MoneyMkt-I € 139.01 - 0.00 0.00 www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48 underlying investments. The buying and selling price
LF Ruffer Equity & General C Inc 406.35 - -4.28 0.10 Income Fund £ 0.5538 - 0.0009 3.13 for shares of an OEIC and units of a single priced unit
Other International Funds
Optima Partners Global Fd $ 16.25 - 0.00 0.00 trust are the same.
Pictet-ST.MoneyMkt JPY I USD ¥ 101001.74 - -1.67 0.00 LF Ruffer Equity & General O Acc 433.07 - -4.58 0.00 Sterling Fixed Interest Fund £ 0.8427 - 0.0021 3.37 Eurobond Fund TRY 0.137169 - -0.702509 -
Optima Partners Focus Fund A $ 16.93 - -0.60 0.00 Pictet-ST.MoneyMkt-ICHF SFr 121.33 - 0.00 0.00 Troy Asset Mgt (1200) (UK) Treatment of manager’s periodic capital charge:
LF Ruffer Equity & General O Inc 401.81 - -4.25 0.00 UK Equity Fund £ 2.0805 - 0.0053 3.39 65 Gresham Street, London, EC2V 7NQ Koc Affiliate and Equity Fund TRY 0.831834 - -0.007844 - The letter C denotes that the trust deducts all or part
Ram Active Investments SA of the manager’s/operator’s periodic charge from
Optima STAR Fund (hedged) $ 99.06 - -0.51 0.00 Pictet-ST.MoneyMkt-IUSD $ 140.79 - 0.01 0.00 Order Desk and Enquiries: 0345 608 0950
www.ram-ai.com LF Ruffer Gold C Acc 132.94 - 0.15 0.00 DPM Bonds and Bills Fund (FX) $ 0.959813 - 0.120135 0.00 capital, contact the manager/operator for full details
Authorised Inv Funds
Other International Funds of the effect of this course of action.
Optima STAR Long Fund $ 133.71 - -1.25 0.00 Pictet-Timber-I USD F $ 177.22 - 1.53 0.00 Authorised Corporate Director - Link Fund Solutions
LF Ruffer Gold C Inc 80.46 - 0.09 0.00
RAM Systematic Emerg Markets Core Eq $ 94.18 - -1.92 - Trojan Investment Funds Exit Charges: The letter E denotes that an exit charge
Pictet TR-Agora I EUR € 126.09 - -1.20 0.00 LF Ruffer Gold O Acc 130.44 - 0.14 0.00 may be made when you sell units, contact the
RAM Systematic Emerg Markets Eq $ 163.79 - -3.21 - Spectrum Fund O Acc 215.64 - -0.74 0.64 manager/operator for full details.
Pictet TR-Corto Europe I EUR € 145.00 - -0.84 0.00 LF Ruffer Japanese C Inc 117.06 - -3.36 0.32
Oryx International Growth Fund Ltd RAM Systematic European Eq € 417.23 - -9.03 - Spectrum Fund O Inc 206.75 - -0.71 0.64 Time: Some funds give information about the timing of
Other International Funds Pictet TR-Divers Alpha I EUR € 108.63 - -0.52 0.00 LF Ruffer Japanese C Acc 249.93 - -7.17 0.34 price quotes. The time shown alongside the fund
NAV (Fully Diluted) £ 9.62 - -0.22 0.00 RAM Systematic Global Shareholder Yield Eq $ 123.93 - -1.49 0.00 Trojan Ethical Income O Acc 117.80 - 0.54 2.95 manager’s/operator’s name is the valuation point for
Pictet TR-Kosmos I EUR € 108.67 - -0.19 0.00 LF Ruffer Japanese O Acc X 245.00 - -7.04 0.04 their unit trusts/OEICs, unless another time is
RAM Systematic Long/Short Emerg Markets Eq $ 120.32 - -0.02 - Stenham Asset Management Inc Trojan Ethical Income O Inc 109.06 - 0.50 3.08 indicated by the symbol alongside the individual unit
Pictet TR-Mandarin I USD $ 162.14 - -0.24 0.00 www.stenhamassetmanagement.com trust/OEIC name.
LF Ruffer Pacific & Emerging Markets C Acc 333.17 - 0.88 0.99 Yuki International Limited (IRL)
RAM Systematic Long/Short European Eq € 149.69 - -1.03 - Other International Funds Trojan Fund O Acc 303.05 - 0.58 0.45
Pictet-US Equity Selection-I USD $ 242.75 - 1.35 0.00 Tel +44-20-7269-0207 www.yukifunds.com The symbols are as follows: ✠ 0001 to 1100 hours; ♦
LF Ruffer Pacific & Emerging Markets C Inc 92.76 - 0.24 0.96 Stenham Credit Opportunities A Class USD $ 118.32 - 1.17 0.00
RAM Systematic North American Eq $ 294.51 - -2.87 - Trojan Fund O Inc 248.33 - 0.48 0.45 Regulated 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Pictet-US High Yield-I USD F $ 166.49 - -0.50 0.00 Yuki Mizuho Umbrella Fund midnight. Daily dealing prices are set on the basis of
LF Ruffer Pacific & Emerging Markets O Acc 326.71 - 0.85 0.63 Stenham Equity UCITS USD $ 171.75 - 1.87 0.00
RAM Tactical Convertibles Europe € 141.96 - -0.77 - Trojan Global Equity O Acc 322.04 - 1.60 0.66 the valuation point, a short period of time may elapse
Pictet-USA Index-I USD F $ 250.43 - -1.38 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 9124.00 - -89.00 0.00 before prices become available. Historic pricing: The
LF Ruffer Total Return C Acc 432.01 - -2.39 1.43 Stenham Growth USD $ 228.25 - -0.64 -
RAM Tactical Global Bond Total Return € 141.38 - 0.03 - Trojan Global Equity O Inc 268.11 - 1.34 0.66 letter H denotes that the managers/operators will
Pictet-USD Government Bonds-I F $ 636.92 - 1.09 0.00 Yuki Japan Low Price ¥ 42643.00 - -27.00 0.00 normally deal on the price set at the most recent
LF Ruffer Total Return C Inc 286.66 - -1.58 1.43 Stenham Healthcare USD $ 223.13 - -3.90 0.00 valuation. The prices shown are the latest available
RAM Tactical II Asia Bond Total Return $ 135.92 - 0.05 - Trojan Global Income O Acc 111.32 - 0.82 2.89
Orbis Investments (U.K.) Limited (GBR) Yuki Japan Value Select ¥ 17826.00 - -235.00 0.00 before publication and may not be the current dealing
Pictet-USD Short Mid-Term Bonds-I F $ 132.04 - -0.01 0.00 LF Ruffer Total Return O Acc 424.01 - -2.37 1.43 Stenham Managed Fund USD $ 123.95 - -0.20 0.00
28 Dorset Square, London, NW1 6QG levels because of an intervening portfolio revaluation
Trojan Global Income O Inc 105.58 - 0.78 2.94 Yuki Asia Umbrella Fund
www.orbis.com 0800 358 2030 or a switch to a forward pricing basis. The
Pictet-USD Sov.ST.Mon.Mkt-I $ 106.07 - 0.01 0.00 LF Ruffer Total Return O Inc 281.19 - -1.57 1.44 Stenham Quadrant USD A $ 440.83 - 2.85 -
Regulated Yuki Japan Rebounding Growth Fund JPY Class ¥ 33318.00 - -279.00 0.00 managers/operators must deal at a forward price on
Trojan Income O Acc 317.82 - 1.33 4.12
Pictet-Water-I EUR F € 326.05 - 3.29 0.00 Rathbone Unit Trust Mgmt (1200)F (UK) request, and may move to forward pricing at any time.
Orbis OEIC Global Balanced Standard £ 15.12 - -0.17 0.00 Stenham Trading Inc USD $ 126.62 - 0.76 - Forward pricing: The letter F denotes that that
PO Box 9948, Chelmsford, CM99 2AG Trojan Income O Inc 178.97 - 0.75 4.26 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1320.90 - -10.86 0.00
Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 managers/operators deal at the price to be set at the
Orbis OEIC Global Equity Standard £ 16.24 - -0.28 0.00 Stenham Universal USD $ 464.20 - -1.17 - next valuation.
Authorised Inv Funds
Orbis OEIC UK Equity Standard £ 8.63 - -0.16 2.33 Blue Chip Income Inc 146.31 150.98 -0.69 4.19 Stenham Universal II USD $ 169.55 - -0.50 0.00 Investors can be given no definite price in advance of
UBS Asset Management (UK) Zadig Gestion (Memnon Fund) (LUX) the purchase or sale being carried out. The prices
Blue Chip Income Acc 245.51 252.87 -1.15 4.05 FCA Recognised appearing in the newspaper are the most recent
5 Broadgate, London, EC2M 2QS
provided by the managers/operators. Scheme
Client Services 0800 358 3012, Client Dealing 0800 358 3012 Memnon European Fund - Class U2 GBP £ 145.58 - -3.17 0.00 particulars, prospectus, key features and reports: The
Ethical Bond Inc 91.13 93.00 0.10 4.15
www.ubs.com/retailfunds most recent particulars and documents may be
Authorised Inv Funds obtained free of charge from fund
Ethical Bond Acc 196.10 199.51 0.23 4.04 S W Mitchell Capital LLP (IRL)
OEIC managers/operators. * Indicates funds which do not
Money Market
Regulated
Platinum Capital Management Ltd Global Opportunities Acc 212.87 218.95 -0.10 0.00 price on Fridays.
SWMC European Fund B EUR € 16004.38 - -447.36 0.00 UBS Global Emerging Markets Equity C Acc £ 0.73 - 0.00 1.18
Other International Funds
Charges for this advertising service are based on the
Platinum All Star Fund - A (Est) $ 132.71 - - - Income Inc 856.37 885.14 2.98 3.93
SWMC Small Cap European Fund B EUR € 14230.28 - -197.77 0.00 UBS Global Optimal C Acc £ 1.00 - 0.00 0.83
Trusts and number of lines published and the classification of the
fund. Please contact data@ft.com or
Pictet Asset Management (Europe) SA (LUX)
Platinum Global Dividend Fund - A $ 46.15 - - - Income Acc 1496.43 1543.42 5.20 3.53 Superfund Asset Management GmbH UBS UK Opportunities C Acc £ 0.85 - 0.00 3.04 call +44 (0)20 7873 3132 for further information.
15, Avenue J.F. Kennedy L-1855 Luxembourg
Tel: 0041 58 323 3000 Platinum Global Growth UCITS Fund $ 10.47 - -0.07 0.00 Multi Asset Enhanced Growth Acc 156.46 - -0.07 0.07
www.superfund.com, +43 (1) 247 00
Regulated UBS US Equity C Acc £ 1.22 - 0.01 0.21
Bank Accounts Gross
FCA Recognised Gross Net AER Int Cr
Multi Asset Strategic Growth inc 168.04 - -0.08 1.46 Superfund Green EUR SICAV € 754.59 - -5.73 0.00
UBS S&P 500 Index C Acc £ 0.88 - 0.00 1.34
Pictet-Absl Rtn Fix Inc-HI EUR € 105.74 - 0.04 0.00
Multi Asset Strategic Growth acc 186.30 - -0.09 1.45 Superfund Red EUR SICAV € 737.43 - -4.96 0.00 CCLA Investment Management Ltd
UBS Targeted Return C Acc £ 13.64 - -0.07 1.29
Pictet-Asian Equities Ex Japan-I USD F $ 253.06 - 0.04 0.00
Senator House 85 Queen Victoria Street, London EC4V 4ET
Multi Asset Total Return inc 127.62 - 0.10 1.10 UBS Sterling Corporate Bond Indexed C Acc £ 0.60 - 0.00 2.86 CBF Church of England Deposit Fund 0.65 - 0.65 Qtr
Pictet-Asian Local Currency Debt-I USD F $ 158.33 - 0.18 0.00
Multi Asset Total Return acc 147.09 - 0.11 1.09 UBS Multi Asset Income C Inc Net £ 0.49 - 0.00 3.94
Pictet-Biotech-I USD F $ 781.00 - 4.16 0.00 RobecoSAM (LUX) Thesis Unit Trust Management Limited (UK)
Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
CCLA Fund Managers Ltd
Rathbone UK Opportunities Inc 438.63 454.94 -2.42 2.36 Tel. +41 44 653 10 10 http://www.robecosam.com/ UBS UK Equity Income C Inc Net £ 0.65 - 0.00 4.05 Senator House 85 Queen Victoria Street, London EC4V 4ET
Pictet-CHF Bonds I CHF SFr 502.82 - 0.43 0.00 Regulated Authorised Funds
COIF Charities Deposit Fund 0.55 - 0.55 Qtr
Rathbone UK Opportunities Acc 570.27 590.42 -3.14 2.30 TM New Court Fund A 2011 Inc £ 14.91 - 0.01 0.39 UBS Corporate Bond UK Plus C Inc Net £ 0.53 - 0.00 4.16
Pictet-China Index I USD $ 131.26 - -3.95 0.00 Polar Capital Funds Plc (IRL) RobecoSAM Sm.Energy/A £ 15.41 - -0.26 1.24
Regulated
Strategic Bond I-Class Acc 142.83 143.38 0.09 3.00 TM New Court Fund - A 2014 Acc £ 15.01 - 0.01 0.45 UBS Global Allocation (UK) C Acc £ 0.79 - 0.00 1.71
Pictet-Clean Energy-I USD F $ 85.85 - 0.26 0.00 RobecoSAM Sm.Energy/N € 13.87 - -0.23 0.00
Automation & Artificial Intelligence CL I USD Acc $ 9.89 9.89 -0.15 -
Strategic Bond I-Class Inc 113.65 114.23 0.07 3.06 TM New Court Equity Growth Fund - Inc £ 15.64 - 0.00 0.06 UBS Global Enhanced Equity Income C Inc £ 0.42 - -0.01 7.23
Pictet-Digital-I USD F $ 383.63 - 2.68 0.00 RobecoSAM Sm.Materials/A £ 186.77 - -3.86 1.26
Asian Financials I USD $ 327.06 327.06 0.53 0.00
RobecoSAM Sm.Materials/N € 191.04 - -3.75 0.00 UBS US Growth C Acc £ 1.41 - 0.01 0.00
Pictet-Em Lcl Ccy Dbt-I USD F $ 166.12 - -1.00 0.00 Biotechnology I USD $ 23.00 23.00 -0.24 0.00
RobecoSAM Sm.Materials/Na € 128.43 - -2.52 1.26 UBS Emerging Markets Equity Income C Inc £ 0.47 - 0.00 3.99
Pictet-Emerging Europe-I EUR F € 341.06 - 5.51 0.00 European Income Acc EUR € 12.03 12.03 -0.15 0.00
RobecoSAM Gl.Small Cap Eq/A £ 106.81 - -1.12 1.06 UBS FTSE RAFI Dev 1000 Index J Acc £ 145.38 - -1.56 2.29
Pictet-Emerging Markets-I USD F $ 576.79 - 2.72 0.00 European Ex UK Inc EUR Acc € 11.01 11.01 -0.17 0.00
RobecoSAM Gl.Small Cap Eq/N € 188.24 - -1.80 0.00 UBS MSCI World Min Vol Index J Acc £ 155.60 - -1.07 2.06
Pictet-Emerging Markets Index-I USD F $ 264.41 - -6.13 0.00 Financial Opps I USD $ 12.64 - -0.13 1.96

Pictet-Emerging Corporate Bonds I USD $ 122.58 - -0.12 0.00 RobecoSAM Sustainable Gl.Eq/B € 214.82 - -2.14 0.00
GEM Income I USD $ 11.27 - -0.15 0.00

Pictet-Emerging Markets High Dividend I USD $ 111.78 - 0.91 0.00 RobecoSAM Sustainable Gl.Eq/N € 189.13 - -1.88 0.00 Unicapital Investments (LUX)
Global Convertible I USD $ 12.81 12.81 -0.07 0.00
Regulated
Pictet-Emerging Markets Sust Eq I USD $ 98.86 - 0.37 0.00 RobecoSAM S.HealthyLiv/B € 192.86 - -1.91 0.00
Global Insurance I GBP £ 6.15 - -0.07 0.00
Investments IV - European Private Eq. € 104.05 - -22.67 0.00

Morningstar Fund Ratings

EAA Fund Europe ex-UK Large-Cap Equity
Name ISIN Currency NAV Total Ret Total Ret Total Ret 12 Month Ongoing Fund Size Morningstar Morningstar Morningstar Morningstar Morningstar Analyst
1Yr 3Yr 5Yr Yield Charge Rating TM Sustainability Rating TM Analyst Rating TM Analyst Rating Date/Time*

Jupiter European GB0006664683 Pound Sterling 22.26 5.16 14.00 12.60 0.00 1.78 5,837,652,128.00 QQQQQ Π04/05/2018 09:40 Samuel Meakin, CFA

Fidelity European Acc GB0003874798 Pound Sterling 22.29 -1.85 11.00 7.84 0.80 1.67 2,314,997,262.00 QQQQ ´ 20/09/2017 05:00 Samuel Meakin, CFA

FP CRUX European Special Sit I Acc GBP GB00BTJRQ064 Pound Sterling 2.53 -12.48 11.00 8.48 1.30 0.88 1,853,614,616.00 QQQQQ ´ 17/10/2018 07:00 Muna Abu-Habsa

Schroder European I GBP Inc GB0007648016 Pound Sterling 12.79 -11.63 11.00 7.49 1.54 0.77 978,589,315.00 QQQQ „ 24/01/2018 05:25 Peter Brunt, CFA

BlackRock European Dynamic A Acc GB0000495209 Pound Sterling 5.25 -9.86 10.00 8.35 0.41 1.67 3,124,249,433.00 QQQQQ „ 09/06/2017 06:00 Muna Abu-Habsa

Artemis European Opportunities I Acc GB00B6WFCR53 Pound Sterling 1.03 -8.87 10.00 8.10 1.44 0.84 352,023,490.00 QQQQ „ 11/12/2017 06:00 Samuel Meakin, CFA

Allianz Continental European A Acc GB0031382988 Pound Sterling 11.96 -7.66 9.00 7.81 0.02 1.65 130,664,378.00 QQQQ ´ 11/06/2018 08:08 Barbara Claus

iShares Continen Eurp Eq Idx (UK) L Acc GB00B08HDG97 Pound Sterling 2.31 -8.67 9.00 6.34 2.55 0.23 3,428,729,480.00 QQQ ´ 11/04/2018 06:15 Dimitar Boyadzhiev

Vanguard FTSE Dev Eurp ex UK Eq Idx Acc GB00B5B71H80 Pound Sterling 235.19 -8.45 9.00 6.47 2.42 0.12 1,571,412,114.00 QQQ ´ 09/04/2018 03:00 Dimitar Boyadzhiev

L&G European Index R Acc GB0002041142 Pound Sterling 3.70 -9.10 8.00 5.72 2.01 0.50 3,146,382,660.00 QQ ´ 11/04/2018 06:28 Dimitar Boyadzhiev

MSCI Benchmark -7.31 0.90 4.46 Date/Time of ratings is Universal Co-ordinated Time (UTC). Sorted by Annualised 3yr Total Return of NAV (highest to lowest).
Morningstar Category Benchmark -7.46 1.12 5.01 For important information about Morningstar Analyst Rating please go to: http://global.morningstar.com/managerdisclosures
Thursday 25 October 2018 ★ FINANCIAL TIMES 25

MARKETS & INVESTING

Tail Risk
Analysis. Cross asset
Fears over lira rally
October a frightful month if Turkish central
bank stays on hold

for global investors CAT RUTTER POOLEY

A tangle of factors including
growth and trade worries
are giving rise to jitters
ROBIN WIGGLESWORTH, NICOLE
BULLOCK, KATE ALLEN
AND JOE RENNISON
Global markets have suffered a frightful
October, with Tuesday’s tumble taking
the FTSE All World index’s loss this
month so far to a whopping 7.3 per cent,
its worst performance since the peak of
the eurozone crisis in 2012.
Of the global equity benchmark’s
3,211 members, almost a third have lost
more than 20 per cent of their value this
year in dollar terms. Well over half are
down at least 10 per cent and, as of the
end of Tuesday, only 853 companies are
still in positive territory for 2018.
Investor pain has been widespread.
The only major asset classes to remain
in the green this year are the equities of
large US companies and US junk bonds.
Even the S&P 500 and the Bank of
America junk bond index are up just
over 2 per cent and 1 per cent, respec-
tively for the year. Behind this is a tangle
of factors that have unnerved investors.
Global growth and China
October may have started with inves-
tors worried about climbing US interest
rates and bond yields but, as the month
draws to an end, it is a good old-fash-
ioned growth scare that is primarily
worrying investors.
Citi’s global economic surprise index
— which measures how often data
comes in better or worse than expected
— has been in negative territory since
April. That is the longest sub-zero
stretch in four years.
Signs of fading economic momentum
led the International Monetary Fund to
knock 0.2 percentage points off its fore-
casts for global growth in 2018 and 2019,
to 3.7 per cent in both years.
Investors are mulling the growing
stand-off between the Italian govern-
ment and the EU over public spending,
as echoes of the Greek debt crisis grow
louder. While the European economy
has stalled somewhat, the biggest cause
of the global growth scare is China.
The Chinese economy has been grad-
ually slowing since 2014 as the authori-
ties try to engineer a soft landing after a
long, construction-driven, debt-fuelled
growth spurt, and a pivot towards a
more consumption-led model.
But Beijing reported last week that
the pace of expansion slowed to 6.5 per
cent in the third quarter, undershooting
expectations and marking the slowest
reading since the 2009 post-crisis nadir.
Together with the impact of the trade
war with the US, that has sent the main-
land CSI 300 index down 21 per cent this
year. The heavily managed renminbi is
down about 10 per cent against the US
currency and is once again flirting with
the Rmb7 per dollar level last seen in
early 2008.
Standard Chartered’s economist
recently visited China and reported to
clients this week that “sentiment on the
ground is weak”.
US earnings
Unlike the rest of the world, the US
economy still looks in good shape. How-
ever, investors are beginning to fret that
the corporate earnings growth seen ear-
lier this year is as good as it will get,
given rising wage costs, interest bills and
materials prices. Moreover, the impact
of the 2018 tax cut will make this year’s
results hard to beat in 2019.
Michael Underhill, chief investment
officer at Capital Innovations, said: “The
discussion in investment committee
meetings and with investors is: have we
hit peak earnings and have we hit peak
valuations?”
The third-quarter results of 3M and
Caterpillar, two US industrial bell-
wethers that reported on Tuesday, fed
this concern. 3M cut its earnings fore-
casts and, while Caterpillar’s profits beat
forecasts, its warnings of rising materi-
als costs rattled investors. Both sets of
results fed into the emerging “peak
earnings” narrative.
Rising interest rates
Bond markets rallied on Tuesday as the
stock market turmoil sent investors
heading for the relative safety of highly
In contrast with
September’s dramatic
interest rate rise, when
Turkey’s central bank
increased its benchmark lending rate
FTSE All-World index by 6.25 percentage points to stem a
developing currency crisis, today’s
370
meeting is likely to be somewhat tame.
The lira has made relatively steady
360 gains against the dollar since the start
of last month. Notwithstanding some
jitters sparked by domestic political
350 uncertainty on Tuesday, the currency
has stabilised around the TL5.7 level
over the past week — compared with
340
the TL6.5 it was at ahead of the last
rate decision.
330 This time, the consensus is for the
central bank to keep the one-week
repo rate on hold at 24 per cent,
320 according to a poll for Reuters.
Jan 2018 Oct “The policy response by Turkish
authorities over the past month has
S&P 500 moving averages been sufficient to help stabilise the
S&P 500 lira,” said Anezka Christovova, an
50-day moving analyst at JPMorgan.
average The bigger than expected rate rise
3,000
100-day moving last month, an improvement in overall
average risk sentiment towards emerging
2,900 markets, the successful rollover of
large Turkish syndicated loans and an
easing of geopolitical tensions
2,800 following the release of the detained
US pastor have all helped with that, Ms
Christovova said, making the case for
2,700
betting against the lira less compelling.
“While another round of FX stress is
2,600 quite possible, steady sources of
pressure on the lira are now smaller,”
she noted, but added: “We are wary of
2,500 turning long lira as risks remain high
Jan 2018 Oct and asset price stability for now may
Source: Refinitiv (formerly Thomson Reuters) well lead to a loss of policy urgency.”
Piotr Matys at Rabobank said the
sharp rise in inflation meant the
US stocks are rated government debt, such as US central bank “may have to seriously
just two major Treasuries, German Bunds and UK gilts. consider another hike on October 25”.
asset classes to However, investors remain on edge Mr Matys acknowledged that the lira
make gains about the impact of rising interest rates. recovery did support the view that the
this year The Federal Reserve is expected to lift central bank should refrain from
Brendan McDermid/Reuters
rates for a fourth time this year in raising rates again today.
December and is slowly but surely But he added: “One should not be
shrinking its balance sheet, which has complacent, however, as various
been stuffed with bonds acquired when external factors could reignite the
combating the financial crisis. bullish momentum in the dollar against
The European Central Bank plans to the lira”, not least another rate rise by
end its own bond-buying by the end of the US Federal Reserve, an escalation
the year, and even the Bank of Japan is of the trade war between the US and
easing back on its monetary pedal. China and worries over Italy’s budget
The net effect of this is what investors and eurozone cohesion.
have dubbed “quantitative tightening”, Commerzbank’s Tatha Ghose was
a sea change in the global monetary even more downbeat. He feared the
environment since the financial crisis lira’s rally was already “fizzling out as
that might bode ill for markets in 2019. the market’s expectations about the
rate decision have changed” with a rise
Political drama no longer the consensus view.
All these economic developments and
market movements are playing out
against a backdrop of a murky political
StanChart’s climate. Some investors are beginning
economist to eye the US midterm elections on
November 6 with trepidation.
visited Prediction markets indicate the Dem-
China and ocrats will gain control of the House of
Representatives while the Republicans FastFT
said that retain a slim majority in the Senate. Our global
‘sentiment With a divided government a possibil- team gives you
ity, the most likely consequence “would market-moving
on the be an increase in investigations and news and views,
ground uncertainty surrounding fiscal dead- 24 hours a day The Turkish lira has stabilised this
lines, which could raise equity volatil- ft.com/fastft week despite political uncertainty
is weak’ ity”, Goldman Sachs said in a client note.

Commodities Fixed income

Gold comes in from the cold as haven
pick after equities around the world slide
HENRY SANDERSON
The volatility across global markets
this month has been intense enough to
spur a rally in gold, the metal that has
been shunned for most of the year as
US stocks set fresh record highs.
Gold has jumped 3.2 per cent to above
$1,230 this month with shares of Lon-
don-listed gold miners Randgold
Resources and Fresnillo each register-
ing double-digit gains and investment
into the largest gold-backed exchange-
traded fund rebounding sharply.
The renewed interest in gold as a
haven is in sharp contrast to the last
time the US stock market buckled in
February when the yellow metal fin-
ished the month down 2 per cent lower.
While rising interest rates are typi-
cally a drag for gold, which does not
offer investors a yield, analysts said this
had been offset by the cluster of con-
cerns that have pulled equities lower.
“Price action in the past couple of
weeks has shown signs that gold is
slowly reasserting its role as a haven,”
said Joni Teves, an analyst at UBS. “In
the near term, a pullback in the dollar,
weakness in equities and the potential
for a soft patch in US data would be
upside catalysts for gold.”
Gold’s advance this month has left it
trading above its 100-day moving aver-
age, raising the hopes of some investors
that gold may be able break of the
$1,200-a-troy-ounce range, which it has
been anchored to for months.
In recent weeks, speculative gold
investors such as hedge funds have also
trimmed their bearish bets on gold
futures, according to exchange data
released last week.
In a further bullish sign, SPDR Gold
Shares, the largest gold-backed
exchange traded fund, has seen inflows
of 247,698 troy ounces this month,
worth $300m. The FTSE All World
equity index has fallen almost 8 per cent
The gains have left the metal trading
above its 100-day moving average
in that time. Trey Reik, a senior portfo-
lio manager at Canadian fund manager
Sprott, said: “When stocks hit a new
record every day, who needs gold?”
But some portfolio managers said
that, for gold to extend its gains, there
needs to be a bigger catalyst such as an
even more serious correction in US
equities, an economic slowdown or a
slower than expected policy tightening
by the US Federal Reserve.
While gold could hit $1,300 a troy
ounce, it is unlikely to get to the $1,700 a
troy ounce seen in 2011, said Marisa
Hernandez, a metals and mining analyst
at Neuberger Berman, which has
$315bn in assets under management.
“Unless something dramatic changes,
I think we are rangebound,” she said.
Shares in gold producers have rallied
11 per cent this month, according to the
NYSE Arca Gold Bugs index. “It did
demonstrate gold stocks could perform
in times of trouble,” Mr Reik said. “If we
do recalibrate our enthusiasm for US
assets, then gold stocks could do well.”
One catalyst for gold miners is the
upcoming takeover of London-listed
Randgold by Canada’s Barrick Gold,
which is due to close in the first quarter
of next year, subject to a vote by share-
holders. That has spurred hopes of fur-
ther deals in the sector.
Fed faces greater challenge in holding
main interest rate within target range
JOE RENNISON AND
ROBIN WIGGLESWORTH — NEW YORK
The US Federal Reserve’s main market
interest rate has drifted back close to
the top of the central bank’s target
range, highlighting the difficulty of
normalising monetary policy after the
biggest central banking experiment in
the modern era.
The fed funds rate, which the Fed is
attempting to keep in the middle of its
target range of 2-2.25 per cent, has risen
to 2.20 per cent, hitting what the central
bank had hoped would be a technical
ceiling.
The Fed pays 2.20 per cent in interest
on excess reserves (IOER) that banks
hold in their accounts with the Federal
Reserve. The fed funds rate is the rate at
which banks borrow those reserves.
The upward drift in the fed funds rate
adds a new headache for the central
bank as it raises interest rates to more
normal levels and works to reduce its
swollen balance sheet without causing
disruptions in financial markets.
“It suggests that the tools the Fed are
using to determine policy rates are less
effective,” said Joshua Younger, an inter-
est rate analyst at JPMorgan Chase. “Not
ineffective but definitely less.”
The fed funds rate hit 2.20 per cent on
Tuesday, according to the New York
Fed, which publishes the rate once a day.
The development fuels an important
debate over how the central bank
should implement monetary policy and
whether it will need to change from the
IOER-based system that it introduced in
2008 during the financial crisis.
Joe Abate, an interest rate analyst at
Barclays, said: “There is an ultimate
issue here, which is what is the Fed’s
operating goal?
“Do they return to the previous
‘There is an ultimate
issue here, which is what
is the Federal Reserve’s
operating goal?’
regime of a scarce level of bank reserves
or do they stick with the status quo of
abundant bank reserves with an inter-
est rate floor and a 25-basis point band
around the target rate?”
Analysts said that the Fed viewed the
rising fed funds rate as a side effect of
the US government’s borrowing splurge
this year and particularly the Treasury’s
increased issuance of short-term debt,
known as T-bills.
Three-month T-bill interest rates rose
to a 10-year high of 2.33 per cent
this week, making it relatively less
attractive to lend money in the fed
funds market.
The outcome of this is fed funds activ-
ity has fallen and rates have risen for
borrowers there.
When the Fed first started raising
rates in late 2015, IOER was set in line
with the upper bound of the Fed’s target
range.
But in June, the Fed began setting
IOER 5bp below its upper bound, in an
attempt to better keep the Fed funds
rate in the middle of its band.
The Fed raised rates to 2-2.25 per cent
last month and has signalled that it
plans further gradual increases to
reflect the strength of the US economy.
Analysts said that the continued
move higher in the fed funds rate within
the range could prompt the Fed to make
a further adjustment to IOER before the
end of the year as it attempts to main-
tain control of the market.
“At a bare minimum, it will persuade
the Fed to increase the IOER in some-
what smaller increments,” said Lou
Crandall, chief economist at Wrightson
Icap.
“If we get a rate hike in December, it
seems likely that it will be no more than
20bp for IOER,” he added.
26 ★ Thursday 25 October 2018

The day in the markets Volatile October

What you need to know
does not have to
3 Chipmakers set the pace as Wall St
deliver bad news
Canadian dollar lifted by third interest rate rise of the year
falls
C$ per US$
3 S&P 500 heading for sixth fall in a row
3 Euro slides after weak PMI reading 1.28
3 Canadian dollar lifted by hawkish BoC

US stocks suffered a renewed bout of

1.29 Mohamed El-Erian
selling — with the S&P 500 heading for a
sixth straight decline and the Nasdaq
Composite on the verge of entering
1.30
Markets Insight
1.31
correction territory — as concerns about

T
the outlook for the chipmaking sector his week’s volatility only minants of asset values and stability. is far from smooth. The solid conditions
made for another nervous session. 1.32 amplifies an already unset- Investing is no longer primarily about in the US stand in contrast to declining
The Philadelphia SE semiconductor tling month for global taking advantage of massive deploy- momentum in Europe and EMs. It is a
index was heading for its lowest close in a 1.33 equity markets. It is the ment of liquidity that lift all financial divergence that will probably widen,
year with Texas Instruments’ shares product of a longer term boats. The change has been led by a Fed- raising the question of whether the con-
falling sharply after its revenues and 1.34 shift driven by an important change in eral Reserve that is gradually reducing vergence will be the rest of the world
earnings forecast disappointed. Jun 2018 Oct the underlying regime for financial mar- the size of its balance sheet, has hiked catching up to the US or America slow-
STMicroelectronics also tumbled after
Source: Refinitiv (formerly Thomson Reuters)
kets. We are moving away from the interest rates eight times since 2015 and ing as domestic stimulus fades and the
the Franco-Italian chipmaker signalled a comforting support of ample, consistent signalled further increases that many downward pull of stagnant economies
slowdown in Chinese demand. and predictable liquidity towards fun- view as relatively aggressive. abroad becomes too strong.
On Tuesday, industrial bellwethers damentals having greater sway. It seems to be more serious about It is a picture that brings short-term
Caterpillar and 3M set alarm bells ringing Treasuries and German Bunds, although the European Central Bank is likely to The change is complicated by a grow- countering pockets of excessive risk- pressure on corporate earnings thanks
when their forecasts reignited concerns there were few signs of a more concerted stress at its meeting [today] that ing economic divergence among devel- taking now in order to reduce the risk of to dollar strength, a consequence of eco-
about the impact of trade tariffs on “flight to safety”, with the Japanese yen monetary policy tightening remains oped countries and uncertainty over future financial instability. Unlike the nomic divergence and wider interest
corporate profits. and Swiss franc lower against the dollar dependent on the incoming data.” trade policy. It has several investment Fed under former chairs Ben Bernanke rate differentials.
“While the strong US economy has and gold little changed. The Canadian dollar rose sharply after implications. and Janet Yellen, under Jerome Powell Trade policy uncertainty is another
underpinned corporate earnings, The euro hit a two-month low against the country’s central bank raised interest After the trauma of the global finan- complicating factor. While Canada,
cial crisis, US equities embarked on a South Korea and Mexico have realised
investors are increasingly concerned
about the future amid signs of rekindling
the dollar below $1.14 after a surprise
sharp decline in the eurozone composite
rates, as expected, and struck a hawkish
tone in its comments. record-breaking rally characterised by
Canada, South Korea and that the best response to the more con-
inflationary pressures and rising interest purchasing managers’ index “pointed to Brent oil rallied after Tuesday’s 4.3 per outstanding returns and unusually low Mexico realised that the frontational US approach is to defuse
volatility. This was notable last year tensions by making concessions, China
rates, along with the consequences of the
US-led trade protectionism,” said Action
the slowest pace of quarterly GDP growth
[in the region] for two and a half years”,
cent tumble — but stayed well below the
$80 a barrel mark — as big drops in US when the S&P 500 returned 22 per cent
best response to the US is still looking to match US protectionist
Economics. said Capital Economics. “Amid the fiscal gasoline and distillates inventories last and the Vix, the widely followed meas- is to defuse tensions measures. The longer it takes for Beijing
The cautious tone in equity markets stand-off between Rome and Brussels, as week offset another rise in crude ure of implied volatility also known as to realise that this is unlikely to succeed,
helped fuel further gains for US well as increasingly jittery global markets, stockpiles. Dave Shellock the “fear index”, spent much of the year the more the domestic debate in the US
in an historically low band of 10-15. officials have refrained from issuing will shift from trade to broader national
This year is turning out to be a differ- soothing statements during bouts of security issues and the harder it will be
Markets update ent story. After resisting declines expe- market turbulence. For its part, the to avoid a damaging global trade war.
rienced by other markets, including European Central Bank continues to In such a world, investment strategies
outperforming emerging markets by an wind down its asset purchase pro- need to evolve. That involves paying
eye-popping 20 percentage points in the gramme and will probably stop it alto- greater attention to what has been
US Eurozone Japan UK China Brazil first nine months of the year, the S&P gether at the end of the year. under-appreciated liquidity risks while
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa has come under pressure with a 6 per Less central bank support has been adopting more active (versus passive)
Level 2724.75 1390.13 22091.18 6962.98 2603.30 84140.51 cent drop this month. accompanied by declining demand management.
% change on day -0.58 -0.20 0.37 0.11 0.33 -1.36 The volatility regime has changed. from foreign investors, especially those It will prove hard for markets to avoid
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ The Vix spiked as high as 37 in February, eager to hedge currency exposure when more volatility in the weeks ahead. But
Level 96.441 1.140 112.555 1.291 6.940 3.719 causing real damage to trading strate- investing in US government bonds. if — and it is a big if — pro growth policies
% change on day 0.500 -0.524 0.410 -0.463 0.023 0.112 gies based on selling volatility. This Fortunately, US economic fundamen- materialise in the rest of the world —
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond month it has traded mostly above 15. tals remain robust. Strong job creation this bout of volatility could be the jour-
Yield 3.128 0.395 0.129 1.315 3.570 10.143 There are plenty of reasons being and wage growth is supporting incomes ney to a destination where markets are
Basis point change on day 0.860 -1.100 -1.610 -1.800 -1.400 0.200 cited for October’s turbulence, includ- and consumption while the fiscal stimu- underpinned by genuine fundamentals
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) ing the notion that US economic growth lus from tax cuts is accentuated by rather than distortionary liquidity.
has peaked and corporate earnings higher spending. All of which is encour-
Level 319.43 77.49 67.69 1235.95 14.72 2963.50
have, too. However, a better way of aging business investment. Mohamed El-Erian is chief economic
% change on day -0.70 1.79 2.45 1.12 0.58 -0.53
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.
thinking about what is unfolding relates But the switch from liquidity-driven adviser to Allianz and author of the book
to a broader change in the major deter- markets to one shaped by fundamentals ‘The Only Game in Town’
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
2960 1520 7680

2880 7360
1440
2800 7040

| | | | | | | | |
2720 | | | | | | | | | | | | | | | | | | | |
1360 | | | | | | | | | | | | | | | | | | | | 6720 | | | | | | | | | | |

Aug 2018 Oct Aug 2018 Oct Aug 2018 Oct

Biggest movers
% US Eurozone UK
Varian Medical Systems 10.05 Saipem 6.35 Bt 4.05
Xerox 4.84 Kering 4.79 Wood (john) 3.70
Ups

Rollins 3.79 Safran 3.99 Ocado 3.67

Dte Energy 3.58 Vi 3.71 Barclays 2.98
Amphenol 3.30 Wartsila 3.15 Royal Mail 2.46
%
Dxc Technology -19.10 Stmicroelectronics -10.02 Fresnillo -4.01
At&t -6.16 Novozymes -6.95 Smurfit Kappa -3.89
Downs

General Dynamics -5.88 Arcelormittal -5.83 Antofagasta -3.89

Viacom -5.84 Porsche -5.75 Micro Focus Int -3.68
Discovery -5.16 Deutsche Bank -4.76 Bhp Billiton -2.01
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Eurozone London

Strong results from Boeing were not Another day of mixed corporate earnings An early UK market rebound was stalled
enough to ease worries that corporate meant European markets struggled to by Wall Street’s continued capitulation
earnings have peaked, meaning US maintain an early rally. with Fresnillo leading the FTSE 100
markets were heading for a sixth straight Gucci owner Kering led the luxury fallers. The silver miner cut production
retreat. The aerospace group had helped goods makers sharply higher after its targets for the second time in three
lift benchmarks at the start of trading by third-quarter sales smashed market months, having suffered from operational
delivering better than expected core expectations with the revitalised flagship problems during the third quarter.
profit and raised guidance, though brand delivering 35 per cent like-for-like BT Group was squeezed higher ahead
surprise charges against new defence sales growth. Sector peers including of interim results due on November 1,
programmes removed some of the shine. LVMH and Moncler jumped after Kering which give the company an opportunity
Texas Instruments, a bellwether for the said revenue growth from mainland China to respond to recent pressure from
semiconductor industry, dropped after continued to accelerate with no signs of a investors including US activist Greenhill.
reporting a gradual softening in orders slowdown since the second quarter. An announcement from rival network
across nearly all its product lines and Safran, the French aerospace and builder CityFibre that it would roll out to
geographies, starting in July and defence engineer, led the Stoxx 50 5m homes was seen as lessening
continuing through September. gainers on results showing buoyant regulatory pressure on BT’s Openreach
AT&T fell after its quarterly earnings demand for after-market spare parts. division, which has been at the centre of
showed a steep drop in customers Chipmakers slipped following recent break-up speculation.
signing up for its DirecTV service, which disappointing results from Texas Quarterly results lifted Barclays with
followed the telecoms group raising Instruments, and after the bank beating consensus expectations
prices and reducing promotions. Revenue STMicroelectronics guided lower fourth- thanks largely to lower impairments.
from broadband and fixed-line services quarter revenue and margin expectations. Metro Bank dropped after
were also negative as management AMS, the 3D sensor maker and fellow disappointing revenue and higher costs
focused on defending profit margins. Apple supplier, slipped to its lowest level meant third-quarter results from the
United Parcel Service slipped after its in nearly two years as downgrades from lender missed consensus forecasts.
earnings only matched consensus JPMorgan Cazenove and Liberum Ferguson, the US-focused builders’
forecasts thanks to a lower than expected followed its profit warning on Tuesday. merchant, retreated on a downgrade to
tax rate. Boliden, the Swedish mining and “neutral” from Credit Suisse. Weakening
International operations were held smelting company, fell after posting lead indicators for US commercial and
back by fuel costs and currency weaker than forecast quarterly earnings residential property suggest a growing
headwinds, particularly from the collapse and setting a much higher than expected risk that the market “tops out” in the
of the Turkish lira, UPS said. Bryce Elder capital expenditure budget. Bryce Elder current quarter, it said. Bryce Elder
 FT SPECIAL REPORT

Modern Workplace LGBT+

Thursday October 25 2018 www.ft.com/reports | @ftreports

A demonstrator celebrates after the Supreme Court’s verdict decriminalising gay sex in India — Abhishek Chinnappa/Reuters

The global drive for equal rights

Inside Financial services open up, Page 2 3 ‘No way back for corporate India’, Page 3 3 Mexico’s third gender, Page 8
2 | FTReports
Modern Workplace LGBT+
Inside
The next frontier
Transgender rights Stresses and
Financial companies
move up the business
agenda as a ‘willingness
to understand’ grows
strains
How to
treat
choose to include
Page 4 minority
groups Openness in the office
The OUTstanding lists when it Traditional firms are
This year’s rankings of comes to now more palatable
Top 100 LGBT+ mental healthcare
for LGBT+ people,
executives, allies, future Page 9
says Javier Espinoza
and public sector leaders Lights, camera,
Pages 6&7
reaction Tim Franks started the proc-
The silver screen blazes ess of coming out in the work-
Mexico’s muxes trail for gay tolerance, place two decades ago.
Indigenous ‘third says Nigel Andrews As a gay executive with a
gender’ faces Page 10 long career at private equity
firms, Mr Franks at first spoke
conflicting to people close to him about
attitudes in How inclusivity his sexuality but over time it
a macho drives creativity started to become an integral
Tech leader Peter Arvai part of who he was at work.
society “It takes a lot of effort if you
Page 8 on being Hungary’s first are not able to feel comfortable
openly gay CEO in the environment where you
Page 11 are,” says the dealmaker at the
US buyout group KKR in
London. “You’re coming out
all the time.”
These days, however, it
requires less effort for him to
be open about his sexuality. He
is married and alongside his
husband is raising a family. “I
get asked about the kids and
then about the wife,” he jokes.
Just as Mr Franks has gradu-
ally become more comfortable
at work, private equity and
other financial services sectors
dominated by a straight male
workforce are increasingly
more palatable places for peo-
ple who are lesbian, gay, bisex-
ual, trans or gender fluid.
More companies are taking
steps to make their workplaces
more inclusive environments.
These actions include sup-
port for LGBT+ networks and
festivals promoting diversity
and inclusion, such as the
insurance sector’s Dive In initi-
atives and corporate celebra-
tions of Pride Month.
They can also involve wider
political advocacy on work-
place diversity.
Role models for diversity of
sexuality have gradually
become more prominent in
recent years. They include
Inga Beale, who stepped down
as chief executive of Lloyd’s of
London this month. During
her tenure she led a campaign
to modernise attitudes and
make the insurance sector a
more inclusive industry.
Attitudes in society have
also changed and in turn have
made it more acceptable to be
LGBT+. Many countries
FINANCIAL TIMES Thursday 25 October 2018
Role model: Inga Beale of Lloyd’s — Simon Dawson/Bloomberg
including the UK have made it
legal for LGBT+ people to form
civil partnerships and mar-
riages, which industry experts
point to as an important cata-
lyst for wider openness.
But these initiatives are only
scratching the surface, accord-
ing to many in the industry. In
the US alone, 46 per cent of
LGBT+ workers remain “clos-
eted”, according to a report by
the Human Rights Campaign
Foundation. More than half of
these employees report hear-
ing jokes about lesbian or gay
people once in a while.
Many companies in Europe
and the US do not keep records
of the proportion of their
LGBT+ workers, sometimes
for reasons of privacy. Singa-
pore and India have poor
records of encouraging com-
panies to be more inclusive,
constrained by a history of
anti-gay laws.
There is also a lack of LGBT+
role models, which in turn is
In America, 46% of
LGBT employees
remain ‘closeted’,
according to a study
hurting the prospects of
attracting new talent, says Jay
Sammons, an executive at
Washington-based private
equity group Carlyle. He has
led the firm’s LGBT+ initia-
tives.
“I joined an industry where
there are very few minorities
in positions of leadership,”
says Mr Sammons. “It is a chal-
lenge that firms don’t have
more diverse talent at the top
level. It makes it harder for
people to look at the leader-
ship of companies and ask
themselves ‘can I be one of
them one day?’ whether
they’re female, LGBTQ or
another minority.”
The lack of role models has
affected sectors such as asset
management, according to
Alan Mason, a managing direc-
tor and head of Americas
portfolio engineering for
BlackRock’s exchange traded
funds and index investments
business.
“The retention of diverse
employees is critical,” he says.
“I believe that we get better
results for our clients because
of having an inclusive team.”
More inclusive behaviour in
other industries is also making
it harder for asset manage-
ment and some other financial
services sectors to attract tal-
ent, says Chris Cummings,
chief executive at the Invest-
ment Association, the trade
body that represents the UK’s
asset management industry.
He says: “We have an
ongoing talent battle. We are
competing neck and neck with
technology and media, places
where they have built a reputa-
tion of being more welcoming.
We want people to feel com-
fortable in themselves.”
Industries need to try
harder to make workplaces a
welcoming environment for
LGBT+ workers, says Amanda
Blanc, head of the Association
of British Insurers and of
Zurich’s European business.
“There is a lot of activity but
what is really working? We do
the things that are easy, like
unconscious bias training,”
she says. “What’s difficult is to
create an environment where
people feel that it is OK to talk
about their weekend if they are
LGBT+.
“We have not moved the dial
yet but everybody is trying
really hard to get it right.”
FINANCIAL TIMES Thursday 25 October 2018
‘No way back for corporate India’
Talent Supreme
Court’s lifting of
ban on gay sex
frees workers to
be more open,
says Amy Kazmin
F
rom early childhood,
industrial engineer
Anubhuti Banerjee
knew that she was a
girl — even if that
was not how she was seen by
family and friends in the small
Indian town where she grew
up. Three years ago, Ms Baner-
jee, 28, began her long-awaited
transition, transforming her
body so that others could
finally see her as the woman
she always knew herself to be.
Throughout her journey, Ms
Banerjee had an unlikely ally:
her employer, Tata Steel. The
century-old, steelmaking arm
of India’s Tata Group had just
begun to talk about workplace
diversity, when Ms Banerjee —
who had joined the company’s
management trainee pro-
gramme two years earlier as a
man — told executives about
her transition plans.
While the company’s chief
diversity officer pledged sup-
port, the following year was a
challenging learning experi-
ence for both Ms Banerjee and
her colleagues in terms of cre-
ating an enabling, inclusive
environment for an employee
undergoing gender transition.
“In a way, they transitioned
as they helped me to transi-
tion,” says Ms Banerjee, who
started working at Tata in the
company-run town of Jam-
shedpur, but more recently
was a customer relationship
manager based in Kolkata. “It
was a transition for [Tata
Steel] to being a much more
sensitive workplace, which is
going to be helpful for others.”
Over the past few years, Tata
Steel’s human resources poli-
cies have been overhauled to
make them LGBT+ friendly.
The company offers same-
sex partner benefits — includ-
ing health insurance and travel
perks; covers the costs of gen-
der reassignment surgery; and
has established an active
employee resource group for
its LGBT+ staff.
The fact that a traditional
heavy industry employer such
as Tata Steel could take steps
to embrace LGBT+ employees
reflects the dramatic changes
under way in corporate India,
where large companies have
begun adopting more inclusive
workplace policies as they vie
to secure talent.
That process is expected to
progress rapidly after the
recent Supreme Court verdict
striking down Section 377, a
colonial-era provision that
criminalised “carnal inter-
course against the order of
nature”, making it punishable
by lengthy prison sentences.
Though gay rights advocates
had argued that Section 377
prohibited a sexual act and not
gay identity, the provision’s
presence on the statute books
was enough to deter many
companies from adopting
LGBT+-friendly policies.
“There were a lot of compa-
nies who thought 377 was a
block to moving forward,” says
Ritesh Rajani, an LGBT+
employee at US computing
group IBM, who is active in
promoting inclusivity. “But
now a lot of companies are
coming forward and want to be
inclusive.”
The first moves towards
more inclusive corporate
workplaces in India began
Anubhuti Banerjee
FTReports | 3
Modern Workplace LGBT+
workplace who are saying,
‘Enough is enough’,” Mr Sha-
hani says. “All these compa-
nies have put up rainbow
logos. But we are not going to
take tokenism. You can’t have
policies not treating staff and
customers equally.”
As Ms Banerjee sees it, even
companies that are not deeply
committed to an inclusive
agenda will have no choice but
to adopt inclusive practices in
the years ahead, as talented
LGBT+ recruits seek welcom-
ing employers that will treat
them equally and with dignity.
“It is a competition for talent
and nobody can afford to stay
behind,” she says. “There are a
lot of companies that would
around a decade ago, initially Consigned to history: confident LGBT+ employees, have preferred to hide behind
led by multinational compa- marchers celebrate India’s who are actively networking to ‘It is not legal — we are not able
nies such as IBM and Goldman scrapping of a law banning share experiences in the fight to support, so too bad.’ But
Sachs, which brought their glo- gay sex for benefits and equal treat- everyone is starting to accept
bal human resources practices Adnan Abidi, Reuters ment. “There are ‘out’ people it. Corporate India does not
to their Indian arms. in India in the corporate have a way back any more.”
But the movement gained
momentum in 2009, when
Delhi High Court ruled that
Section 377 could not be
applied to consenting adults —
a dramatic turning point in
India’s gay rights movement
that brought many LGBT+
people “out of the closet”.
Pioneering companies such
as Godrej, the consumer goods
company, took steps to make
workplaces more inclusive,
with non-discrimination poli-
cies and employee support
groups, while some businesses
have adopted same-sex part-
ner benefits.
In 2013, the inclusivity
agenda suffered a significant
setback when the Supreme
Court overturned the 2009
Delhi High Court judgment,
and reinstated Section 377 — a
verdict that dismissed gay
people as a “minuscule minor-
ity” and thwarted the drive
towards inclusive workplaces.
“Many companies got cold
feet and said, ‘Let’s stop. Let’s
dial this down, and let’s wait
for clarity’,” says Parmesh Sha-
hani, head of the Godrej India
Culture Lab, a venue for dis-
cussion of contemporary
Indian society.
But September’s unanimous
Supreme Court ruling has set-
tled the issue once and for all,
ruling that Article 377 violates
the right to privacy and self-
expression.
In the wake of the verdict,
companies are re-starting
stalled inclusivity initiatives.
In some cases, businesses are
being pushed by increasingly
8 |4 FTReports
| FTReports FINANCIAL TIMES
FINANCIAL Thursday
TIMES 25 25
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October 2018 FTReports
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Modern
ModernWorkplace
WorkplaceLGBT+
LGBT+ Modern
ModernWorkplace
WorkplaceLGBT+
LGBT+

mental debate is, ‘will I ever be trans inclusion is important, that employees, corporate “good practice

Mexico’ s muxes
Trans rights are look
next Minority support needs a nuanced outlook employed’?” Supporting trans people might not become obvious.”
at work needs to be “completely natu- Claire McCartney, diversity and
ral”, she says, and it works for busi- inclusion adviser at the UK’s Char-
nesses too, as trans people will then tered Institute of Personnel and
was . . . action that goes above and
beyond what is enshrined in law”.
This could include updating “per-
sonal data related to previous names
be able to “work freely without fear, Development, notes that organisa- or personal identifiers” and avoiding

beyond
frontier historic roles
for business Profile
and teaching work to examining how and
cultural background and sexual
identity affect how patients
The BMA’s president talks communicate their symptoms to
to Bethan Ashmead Latham psychiatrists.
andgive
divided
2017,that
the World
having to hide
During
LGBT+
pushed for
trans
guard
He argues that it is essential that seriousness
rights
business
he served
loyalty and talent,
Psychiatric
histheir
timetrue
organisations

excluded and
at the
policy improvements
in the workplace
the mental
as campaigners
their un-
as president

WPA, he
are granting

vulnerable groups
of tions have started paying more atten-
without tion to trans issues, perhaps driven by
Association.
selves”. cases in the media. Ms McCartney
to says that all of an organisation’s sys-
greater tems and processes should be “geared
health of minority,
also step to being inclusive” across the many
so-called
Mumbai,
a trans
theyHehave
Acas
presence
panies
within
theirHe
“deadnaming”
where, he says,
person’s
still scared
adoptedthe
welcomes
also of
consult
repssaw
birthout”.
of coming
a new
recommended

—the
make
—“people
the use are
name when
one.
increased
LGBT+ support
unions.community.
the medical
that com-
of

networks
“Unions — and
a real difference
Association of LGBTto
about being an outsider

N
Social acceptance
Gender identity whoaomy Méndez
is gender-fluid — in of thewords,
other fabric offromsociety. “I’m
the National Center for Trans- clinicians do not misunderstand upacross
the pressure.
the world. In This
2018,workfor the first kinds of diversity that businesses
included trans people’s
Doctors experiences
and Dentists (GLADD)at work,
grow
withRomero
a gender is lucky
identity— that
breaking
can shift the
— stereotype
gender Equality.or Poverty and home- these nuances. “If psychiatrists do not time, an organisation
support for LGBT+ people couldalongside
only be standing up for
from a small workers
group of fivefacing
in thedis-
1980s
An indigenous
The treatment of canher first
relate todress andof hostility.
this kind stigma in our region,”
lessness she were
says also much higher The standard of mental healthcare recognise the differences which affect listed in the top
migrants, asylum100 seekers,
Stonewall theWork-
elderly crimination
into a largeor misunderstandings,
network today that
minority faceshas
trans people heels
Debbie’s
usefrom
“they”
were
herand
a
request gift
father,
“them”who
of
that a tradition
colleagues
do not lem
as personal
where
among muxe,
trans
necessarily
people. But, as the prob-
has climbed up political agendas
has been transformed since Professor how patients from minority cultures place
Dinesh Bhugra’s psychiatric training describe their experience, it can lead strated
andEquality
those with
[its]
In that
Index if it had
learning
commitment
role,
“demon-
disabilities.
to trans ‘Coworkers misgender
Prof Bhugra advised
and ensuring
engages
welcoming
workplaces
in public
and legal change.
debates areon
for everyone,” says
safe and
political

conflicting
moved up the agenda,
and her pronouns
universitymet letsa her
hostileundergo
reception: surgery,
andarebecome
expected the next frontier in the in Leicester’s asylums during the to the wrong sort of clinical equality”.
campaigners lobbying for the recent Frances
ProfO’Grady, general secretary
Bhugra explains that such of
attitudes, says wear what she likes. In macho to stick togen-
stereotypically femi- the corporate world investigation, and there are different Stonewall considered
legislationfactors gay me and don’t correct this
such thegroups
UK’s Trades
can be aUnion Congress.
of In
writes Josh Spero southernderMexico
Debbie’s
identity
manager
in as
“treated
theif 21st
it werenine
my
jobs like has
no different
fight
cooks,
for equality,
seam-
started to respond.
1980s. He points to the rise of
community care and the progress stigmas in minority communities
scrapping of
as sex
whether the(see
in India organisation
banning
page 3). He provided
has also because it’s not taken many other parts
professional
good source
of theThere
support. world,istrans
value
Jude Webber century, that
thanmatters
a teenager because stresses
going through or beauticians,
a Goth In 2016,and tothe consultancy EY made in reducing the stigma attached which may impact whether, and how, support submittedto transitioning individuals;
evidence to Kenya’s high people
in theface
shared frequent
experiencesviolence
theseand
Naomy isphase”.
a muxe. stay single. whether employees could be case for seriously and nor am I’
theregis- have few protections in the work-

I
n January this year, the Financial launched a guide to support its trans to mental illness. people seek help,” he explains. court, which is examining professional groups provide, where
Times reported on the results Born
of men, but often
“There living
are still as of “I
plenty want to be aemployees,
coworkers lawyer. I wantwhich Anjeli Patel, 31, a Yet whatever advances have been Last year, Prof Bhugra was ranked tered as non-binaryof(people
decriminalisation homosexual whose place.
senior Within the EU,
practitioners cana mentor
2015 sur- the
a disturbing survey from women,
the muxe — pronounced
who continue 100 per
to misgender me cent
and acceptance,
trans woman notwho works in EY’s peo- made, people from minorities can top and in 2018 has been rated third gender acts. Aidentity
decision does
on not sit comforta-
whether to amend vey found LGBT+
younger that while most western
professionals, he
LGBT+ charity Stonewall.“mu-shay”
The don’t — occupy
correct a[this]
tradi-because
70 per
it cent,
is notfor this
ple to be a truepractice, appreciated. Anjeli Patel, 31, was asked
advisory come up, interviewers could be intru- shehave
trusted
very that the firm’s
different professed
experiences of theinearly stagesofof
the listing launching
leading LGBT+ a trans
public blyKenyan
with “man”
legislationor “woman”);
is expected in and need to focus on, both to attract talent Europeans
says. were comfortable work-
UK survey found that half tional
of roletaken
in indigenous
seriouslyZapo- muxe paradise,”
and neither am I,” Her sheexperience
adds. of talking about being intrusive questions in job sive or even crude. tolerance
treatment, wassays
borne out in practice
the 66-year-old, who business advisory group
sector executives. to highlight
His work in whether
November. senior leaders were
Singapore has alsoclear in and to better understand its custom- ing with
Beyond transthepeople,
help hehigh levels of
has received
trans people — those whose gendertec culture
is saidthat goes in
Debbie beyond Naomy, to28, trans
emailed answers wears infemale
job interviews is perhaps interviews Ms Patel says: “Some of the ques- and decided
this year was toelected
“lay mypresident
cards onofthe the and encourage to
campaigning theprotect
presence of trans their
the mental supportthe
consulted forWPA
transin equality.
a similar ers. She adds: “If you’re a smaller discomfort prevailed
from colleagues andacross
that heeastern,
not the same as their biologicalidentifying as gay.
sex at questions. clothes for her weekday
reflectivejob as At work
of changing attitudes.
and play: Naomy Alan Knox/FT tions I was asked [included], ‘How table . . . Medical
British and be as transparent and people
Association. in theand
wellbeing workplace.
rights of minority Darren
review, he Towers,
‘Being a migrant and gay
says. executive director organisation, it might be resource- central and south-eastern
encourages elsewhere, itEurope.
is the
birth — have been so afraid of dis- But Naomy, who is studying a secretary
Such stories are not rare, and come at the town hall,
When going for jobs before EY, Ms
Méndez Romero (above); much time are you going to need off?’ honestTheasIndia-born
I can be”. psychiatrist’s own “We
groupsfeel at present
is reflected that
in his there is at Stonewall,
professional His familysays it is a mistake
has known he is gayfor allowsbutme
for a intensive, to look
there’s at infor-
lots of free Progress,
support from then,his is civil
uneven. But as Ms
partner
crimination at work that theylaw part-time
have against anda wants
bleaktocareer
go where
outlook she
foris allowed to use to and
Patel decided “notDarina
talk about Guerra it; Carballo ‘Is everything “done”?’ This is a pro- This has worked
experience of “beingout well forand
a migrant Ms toocredentials.
much talkAside and not
fromenough walk companies
his year-long long time but to think they
he did not comehaveoutno mation and guidance out there.”
things from an outside Patel says: “I
Michael, whothink a lot ofa software
manages trans peo-
hidden their identity. One ininto eightpolitics, sees obstacles
trans people: their rate ofwomen’s
unemploy-bathrooms.
let’s notEstrella
mention it; I hope
(right, they won’t
facing right) and fessional interview; how do you think Patel, who isme
gay allows ontothis year’s
look FT/OUT-
at things from bystintbusinesses and theirhe
as BMA president, command
serves as trans when workers.
he was young He says: “InHis
in India. some A study published last year by plecompany
are starting to findLondon,
in south their voice
thatnow
really
had been physically attacked by even
col-in her
menthome (15town
per of Juch-wasVásquez
cent) three timesGuerra, 36, also
notice”. a Estrella
But “people wereVásquez
trying toGuerra it’s acceptable to be asking me those standing list of
an outside LGBT+ future
perspective”, he leaders.
adds. structures,”
professor ofMs Belcher
mental healthsays.
and “If large organisations
professional work hasthey mightthe
covered as- Acas, perspective’
a UK public body that mediates and there’s
stands out.a“Mylot of understanding,
partner has been
leagues or customers. itán de Zaragoza,
higher thanin the state
that of general
of the muxe andpopu-the municipality’s
figure me out rather than left)
(facing listening to things?” Antonia Belcher,
Since moving a trans
to the UK inwoman
1979, he you are a young
diversity trans
at King’s person
College yet to sume
London’s they have
difficulties facednobytrans
transemployees
and gay between employers and employees, and if there’she
wonderful, not an understanding
is my better half,”
Dinesh Bhugra
Debbie, a shop worker in the Oaxaca,
US where
lation,muxe are part
according to a director
2016 reportof sexual
whatdiversity,
I was saying”. If the subject did
Bénédicte Desrus for the FT
When she was interviewed by EY, whohasruns a building
dedicated much consultancy, is in find
of his research work .of
Institute . .Psychiatry.
then forefront of your
Between 2014 butmenuntilinthey
partsstart talking
of India, suchabout
as why found that, in the view of trans there’s a willingness to understand.”
he says.

sports the traditional long
skirts and blouses that were
the hallmark of artist Frida
Kahlo. “I love people to turn
round and look at me,” Estrella
laughs, tall and striking at a
recent party. “We’re fighting to
become more and more visi-
ble . . . but there’s still homo-
phobia, still men who don’t
accept us in offices or other
public places.”
Like many countries, Mex-
ico is struggling to balance
non-discriminatory legislation
with social conservatism.
Prominent politicians Public
figures widely known to be gay
remain firmly in the closet,
and there have been only a
handful of openly gay or trans
public officials. Even the late
Juan Gabriel, one of Mexico’s
best loved singers, refused to
confirm he was gay, saying
“you don’t ask what you can
see”. A national survey of dis-
crimination last year found
two-thirds of people believed
the rights of gays and lesbians
were “hardly or not at all”
respected in Mexico — a pro-
portion rising to nearly three-
quarters when applied to atti-
tudes towards trans people.
Among the non-heterosex-
ual population, 30 per cent
had suffered discrimination in
the previous year, the survey
found. Worse, a study pub-
lished this year pointed to a
rate of at least six murders of
lesbian, gay, bisexual and trans
people every month on gender
identity grounds, with trans
people the most attacked.
Because of discrimination,
many muxe drop out of school
and skip higher education,
limiting their career prospects.
Social acceptance often comes
from caring for their ageing
parents and a reputation for
industriousness.
“In many parts of Mexico, to
be a muxe or gay is synony-
mous with debauchery. Being
a muxe in Juchitán is synony-
mous with working,” says
Felina Santiago Valdiviesa, 50,
a hairdresser and activist.
“My father wanted me to be
an accountant, but I couldn’t
see myself in a shirt and tie,”
she says. Felina unsuccessfully
ran for election to a local state
congressional seat this year. “If
I’d had millions, it wouldn’t
matter how muxe I was, I’d
have won,” she adds.
Ironically, in the same elec-
tions, 17 men were found to
have faked being trans under
new rules in Oaxaca allowing
candidates to register based
solely on how they identify
themselves. Local electoral
law is particularly progressive
given that only three of Mex-
ico’s 32 states — not including
Oaxaca — let people change
their gender identities.
Muxe are traditionally seen
Watch the video
Muxes and their
families tell Jude
Webber about their
lives in Mexico’s
macho society
www.ft.com/muxe
as a blessing for a family. But
they also bear the cost of a life
with limited career prospects
and, at worst, outright rejec-
tion. Estrella says her late
father “hated me: he wanted to
kill me”.
Homosexual couples across
Mexico sometimes have to
jump through legal hoops to
marry even though the right to
same-sex unions was upheld
by the Supreme Court in 2015.
Indeed, the head of a far-right
party in the electoral coalition
of incoming leftist President-
elect Andrés Manuel López
Obrador has dismissed same-
sex marriage as a “fad”.
Darina Guerra Carballo, 32,
who has an older muxe sister,
lives with her partner Jesús
Gómez Reyes, 29, and dreams
of getting married, buying a
house and adopting a child.
“I think it’s normal,” says
Jesús, of his relationship — his
second with a muxe — or
“someone of her sex”, as he
puts it. He has two children
from an earlier relationship
with a woman. “Really, I don’t
consider myself gay, but I
probably must be because I
live with her,” he says.
Even muxe dressing as men
can suffer discrimination.
Nonetheless, the town of Juch-
itán remains “one step ahead”
of the rest of Mexico, says Elvis
Guerra López, a 25-year-old
lawyer and muxe, who dresses
as a man.
“I don’t care if they call me
‘he’ or ‘she’, as long as they
respect my rights.”
Judges and methodology
All 2018 role models were nominated by
peers and colleagues. Nominations were then
reviewed by the OUTstanding independent
judging panel: Dawn Airey, chief executive
Getty Images (below right); Lord Browne,
executive chairman, L1 Energy; Prof Vicki
Culpin, professor of organisational behaviour,
Ashridge Executive Education; Harriet
Green, chairman and chief
executive, IBM Asia Pacific; Suki
Sandhu, founder and chief
executive, INvolve; Josh Spero,
journalist, Financial Times;
Ashok Vaswani, chief executive,
Barclays UK. Each nominee was
scored on the seniority and
influence of their role, their impact on
LGBT+ inclusion inside and outside the
workplace and their business achievements.
Everyone named in the lists has given their
Contributors
Javier Espinoza
Private capital correspondent
Amy Kazmin
South Asia bureau chief
Josh Spero
Transport correspondent
Jude Webber
Mexico and Central America correspondent
Shannon Bond
San Francisco correspondent
Nigel Andrews
FT film critic
permission to be included. For the leading
LGBT+ executive and ally executive lists, the
nominee’s seniority and influence were taken
into consideration. They must be visibly out
or a vocal ally, working to create a positive
environment for LGBT+ people. It was
important that people were working towards
this goal over and above their day job,
which made it hard for the judges
to consider diversity and
inclusion professionals. Suki
Sandhu, chief executive of
INvolve, parent organisation of
OUTstanding, said: “Our sixth
list is our most international and
diverse ever. We’re so proud to see
so many senior and future leaders
recognised as role models for their work
driving cultural change and creating work
environments where everyone can succeed.”
Bethan Ashmead Latham
Freelance journalist
Michael Kavanagh
Commissioning editor
Steven Bird
Designer
Alan Knox
Picture editor
For advertising details, contact: Carol Ramsey,
+44 (0) 20 7873 4024 and carol.ramsey@ft.com
All editorial content in this report is produced by
the FT. Our advertisers have no influence over or
prior sight of the articles.
6 | FTReports FINANCIAL TIMES Thursday 25 October 2018

Modern Workplace LGBT+

LGBT+ Executives LGBT+ Executives

Rank Full Name Company Job Title Rank Full Name Company Job Title
1 Jim Fitterling Dow Chemical Company Chief executive 51 Jens Audenaert ADP Divisional VP and general manager
2 Stacey Friedman JPMorgan Chase General counsel 52 Elliot Vaughn Boston Consulting Group Partner and managing director
3 Peter Arvai Prezi Chief executive and co-founder 53 John Clifford McMillan Partner
4 Stephen Jacques Key Assets Chief executive Bank of America Merrill
54 Darren Rickards Managing director, EM corporate banking
Lynch
5 Martin Chavez Goldman Sachs Vice-chairman
55 Lisa Davis Citi MD, global head of enterprise services
6 Edward Enninful British Vogue Editor-in-chief
56 Joey Gonzalez Barry's Boot Camp Chief executive
7 David Hynam Bupa UK chief executive
57 David Finlayson Credit Suisse Global chief of staff, group operations
8 Angelica Ross Miss Ross Inc President
Head of business development,
58 Sylvia Ng HSBC
9 Margot Slattery Sodexo Country president, Ireland GreaterChina
10 Suresh Raj Zeno Group MD, global business development 59 Will Smith Deloitte Partner
11 Jan Siegmund ADP Chief financial officer 60 Ben Foat Post Office Group legal director
12 Lisa Wainwright GB Basketball Chief executive (until October 2018) 61 Tony Wood Mercer Marsh Benefits UK health leader
13 Victor Nieves EY Director, EMEIA capital markets 62 Tim Millward ExtraStaff Chief executive
14 Nick Mott Dentons Assistant general counsel and partner 63 Brian Bickell Shaftesbury Chief executive
15 Daniel Gerring Travers Smith Partner, head of pensions 64 Darren Styles Stream Publishing Managing director
16 Jim Ford Allen & Overy Co-head of life sciences 65 Brian Winterfeldt Winterfeldt IP Group Founder and principal
17 Brian Rolfes McKinsey & Company Partner, global recruiting 66 Timothy Thompson TD Bank Group Senior VP, strategy and transformation
18 Geoff Godwin AIG UK chief operating officer 67 Timothy Chow Diageo General counsel, Latin America and Caribbean
19 Angela Darlington Aviva Group chief risk officer 68 Greg Johns IBM North America Director and senior negotiations executive
20 Ken Janssens JPMorgan Managing director, global technology 69 Cliff Hopkins Instagram Global head of marketing
21 Saleem Fazal Taylor Wessing Partner 70 Emma Woollcott Mishcon de Reya Partner
22 Iain Anderson Cicero Group Executive chairman 71 Huw Morris Lee & Thompson Partner, advertising and marketing
23 Geffrye Parsons Macquarie Bank Managing director 72 Shachar Grembek Reps AI Co-founder and chief technology officer
24 David Furnish Rocket Entertainment Chief executive 73 Matt Scarff ITV Director of ITV Creative and Events
25 Joshua Graff LinkedIn UK country manager and VP, Emea 74 Hayley Sudbury Werkin Founder and chief executive
26 Jason Grenfell-Gardner Teligent President and chief executive 75 Wesley Bizzell Altria Senior assistant general counsel
27 Mark Anderson Virgin Atlantic Executive vice-president, customer 76 Catherine Vaughan EY Partner, global compliance leader
28 James Allan Barclays Managing director, corporate banking FX 77 Olfert de Wit HSBC Chief operating officer, Singapore
29 David Levine Disney General manager, Disney ChannelsUK/Ireland 78 Lawrence Spicer RBC VP audit, personal and commercial banking
30 Cynthia Armine-Klein First Data Corporation Chief control officer 79 Cynthia Fortlage GHY Chief information officer
31 Sander van't Noordende Accenture Group chief executive, products 80 Gabrielle Novacek Boston Consulting Group Partner and managing director
32 Pippa Dale BNP Paribas Head of global markets roadshows 81 Amin Kassam Bloomberg Chief of staff and senior counsel
Core Assets Children's 82 Monica Boll Accenture Managing director
33 Sarah Dimmelow Managing director
Services
83 Jeffrey Krogh BNP Paribas Managing director
34 Amanda McKay Balfour Beatty Quality director, major projects
84 Narind Singh Clifford Chance Partner
35 David Isaac Pinsent Masons Equity partner and sector head
85 Martin Stead Nutmeg Chief executive
36 Robert Annibale Citi Global director, inclusive finance
86 Steve Wardlaw Emerald Life Executive chairman
Bryan Cave Leighton
37 Daisy Reeves Partner 87 Abby Fiorella Mastercard General auditor
Paisner
38 Jon Miller Brunswick Group Partner 88 Vincent Francois Société Générale Regional chief audit executive
39 Richard Socarides GLG Chief communications officer 89 Ellen van Essen Vodafone Global head of shared services
40 Masa Yanagisawa Deutsche Bank Co-head of Japan equity sales 90 Justin D'Agostino Herbert Smith Freehills Global head of disputes
41 Louis Vega Dow Chemical Company President, Australia and New Zealand 91 Emma Goodford Knight Frank Partner, department head, UK
42 Antonia Belcher MHBC Founding partner 92 Eric Dube Viiv Healthcare Head, North America
43 Robert Hanson John Hardy Chief executive 93 Shamina Singh Mastercard President, centre for inclusive growth
44 Ollie Saunders JLL Lead director, alternatives 94 Anna Fullerton-Batten Refinitv Head of global people acquisition
45 Patrick Mispagel Moody's Investors Service MD, Emea ratings and research support 95 Jorge Pikunic Centrica MD, distributed energy and power
46 Thomas Sanchez Social Driver Chief executive 96 Alex Kalomparis Gilead Sciences Vice-president, public affairs, Emea
47 David Shelley Hachette UK Chief executive 97 Erik Luengen SAP Vice-president, head of operations
48 Robyn Streisand The Mixx Chief executive 98 Tuvia Borok Goldman Sachs Executive director and senior counsel
49 Michael Brunt The Economist Chief operating officer 99 Marc Rubinstein Asia Pacific Land Managing director, group general counsel
50 Maggie Lower TrueBlue Chief marketing officer 100 Dominik Weh Oliver Wyman Partner
FINANCIAL TIMES Thursday 25 October 2018 FTReports | 7

Modern Workplace LGBT+

Future Leaders
LGBT+ leaders and allies Rank Full Name Company Job Title
The OUTstanding lists 1 Billy Kamberis Barclays Head of sales, service and performance CIB
2 Alberto Pino Dow Chemical Company Latin America homecare marketing manager
Since 2013, the OUTstanding lists, presented by the FT,
have been celebrating those LGBT+ executives and allies Customer experience and sustainability
3 Joanna Walker Virgin Money
who are not only successful in their careers but are also manager
creating supportive workplaces for other LGBT+ people.
4 Wally Suphap Morgan Stanley Vice-president, legal and compliance research
We have recognised LGBT+ future leaders and ally
executives too, and this year we have our second list of 5 Anjeli Patel EY Senior consultant, people advisory services
LGBT+ workers from the public and third sectors.
Trans representation fell this year, from 9 per cent in 2017 6 Robert Ronneberger BlackRock Vice-president, multi-asset strategies
across the lists to 6 per cent, but there were more lesbians 7 Christina Riley Kier Senior planner
(up 2.3 percentage points). Gay men still claim more than
two-thirds of places. Financial services tightened their grip 8 Nathan Eastwood Clifford Chance Senior associate
on the lists, up to almost a third of all nominees. 9 Cat Hudson GSK Senior manager, R&D strategy and portfolio
Representation from the law and professional services grew
too. Together, these three categories make up over half of 10 Krishna Omkar King & Spalding Associate
the lists. There were sharp drops in those coming from the
11 Brendan Walls LinkedIn Director
tech sector and industry.
You can see the full lists (Top 100 LGBT+ executives, Bank of America Merrill
12 Daniel Doherty Vice-president — business support manager
Top 50 allies, Top 50 future leaders and Top 30 public Lynch
sector figures) at ft.com/executive-diversity 13 Anthony Marroney Standard Chartered Bank Associate director
14 Sue Baines Barclays UK Director of debit card optimisation and growth
15 Mark Darby Salesforce Head of strategic services, Emea
16 Pete Foley Mercer Senior associate

Ally Executives 17 Jonathan Andrews Reed Smith Trainee solicitor

Rank Full Name Company Job Title 18 Asako Kawamura EY Senior consultant
1 Catherine Bessant Bank of America Chief operations and technology officer 19 Eraldo d'Atri Clifford Chance Senior associate
2 Jose Berenguer JPMorgan Chase Chief executive, JPMorgan Brazil Senior account manager, restructuring and
20 Ben Cawley Standard Chartered Bank
recoveries
3 Greg Case Aon President and chief executive
21 Julia Atwater Atos UK head of communications, B&PS division
4 Rekha Menon Accenture Chairman and senior managing director, India
22 Henry Li Eversheds Sutherland Associate, litigation and dispute management
Jean-Laurent
5 BNP Paribas Chief executive
Bonnafé 23 Jon Tilli Deutsche Bank Vice-president, commercial real estate
6 Gregg Alton Gilead Sciences Executive vice-president, chief patient officer 24 Louis Ng Fidelity International Early careers talent acquisition manager
7 Mark Wilson Aviva Chief executive (until October 2018) Samantha Jayne
25 Marsh Risk engineer
8 Larry Ryan Dow Chemical Company President, growth platforms and technologies Nelson
The Boston Consulting
9 Peter Grauer Bloomberg Chairman 26 Annika Zawadzki Principal
Group
10 Jules Quinn King & Spalding Partner
27 Em Sendall Deloitte Manager
11 Peter Harrison Schroders Group chief executive
28 Esther McDermott Dentons Senior associate
12 Lee Ranson Eversheds Sutherland Co-chief executive
29 Nicholas Deakin Citibank Associate, Emea healthcare group
Americas vice-chair, Northeast regional
13 Richard Jeanneret EY 30 Herman Duarte Hduarte Legal Founding partner
managing partner
14 Peter Markey TSB Marketing director
15 Sue Fox M&S Bank Chief executive
16 Margaret Egan Hyatt General counsel and secretary
Public Sector
17 Hannah Grove State Street Chief marketing officer
Rank Full Name Company Job Title
18 Ryan Stork BlackRock Chairman and head, of Asia Pacific
Thomson Reuters
19 James Forese Citigroup President 1 Antonio Zappulla Chief operating officer
Foundation
20 Richard Arnold Manchester United Managing director 2 Kevin Jennings Tenement Museum President
21 Sharon Hague Pearson Senior vice-president 3 Dinesh Bhugra British Medical Association President
22 David Sproul Deloitte UK senior partner and chief executive 4 Martin Shanahan IDA Ireland Chief executive
23 David Mathers Credit Suisse Chief financial officer
Church of England
5 Lee Marshall Chief of staff
24 Iain Conn Centrica Chief executive Pensions Board
25 Neta Feller Natural Intelligence Chief people officer Director of membership and stakeholder
6 Ian Adams NHS Resolution
26 Chris Grigg British Land Chief executive engagement
27 Jennifer Rademaker Mastercard Executive VP, global customer delivery 7 Carole Anderson Golden Jubilee Foundation Head of strategy and performance
28 Jim Herbert Aon Chief development officer 8 Dominic Shellard De Montfort University Vice-chancellor
29 Sophia Ahmad Sky Director, Sky Mobile 9 Pav Akhtar UNI Global Deadline Director of professionals and managers
30 Matt Elliott Virgin Money People director 10 Tammy Smith US military Major general
8 | FTReports
Mexico’s muxes look
beyond historic roles
N
Social acceptance aomy Méndez
Romero is lucky —
An indigenous her first dress and
minority faces heels were a gift
from her father,
conflicting and her university lets her
attitudes, says wear what she likes. In macho
southern Mexico in the 21st
Jude Webber century, that matters because
Naomy is a muxe.
Born men, but often living as
women, muxe — pronounced
“mu-shay” — occupy a tradi-
tional role in indigenous Zapo-
tec culture that goes beyond
identifying as gay.
But Naomy, who is studying
law part-time and wants to go
into politics, sees obstacles
even in her home town of Juch-
itán de Zaragoza, in the state of
Oaxaca, where muxe are part
Modern Workplace LGBT+
of the fabric of society. “I’m
breaking the stereotype or
stigma in our region,” she says
of a tradition where muxe,
who do not necessarily
undergo surgery, are expected
to stick to stereotypically femi-
nine jobs like cooks, seam-
stresses or beauticians, and to
stay single.
“I want to be a lawyer. I want
100 per cent acceptance, not
70 per cent, for this to be a true
muxe paradise,” she adds.
Naomy, 28, wears female
clothes for her weekday job as
a secretary at the town hall,
where she is allowed to use
women’s bathrooms. Estrella
Vásquez Guerra, 36, also a
muxe and the municipality’s
director of sexual diversity,
At work and play: Naomy
Méndez Romero (above);
and Darina Guerra Carballo
(right, facing right) and
Estrella Vásquez Guerra
(facing left)
Bénédicte Desrus for the FT
sports the traditional long
skirts and blouses that were
the hallmark of artist Frida
Kahlo. “I love people to turn
round and look at me,” Estrella
laughs, tall and striking at a
recent party. “We’re fighting to
become more and more visi-
ble . . . but there’s still homo-
phobia, still men who don’t
accept us in offices or other
public places.”
Like many countries, Mex-
ico is struggling to balance
non-discriminatory legislation
with social conservatism.
Prominent politicians Public
figures widely known to be gay
remain firmly in the closet,
and there have been only a
handful of openly gay or trans
public officials. Even the late
Juan Gabriel, one of Mexico’s
best loved singers, refused to
confirm he was gay, saying
“you don’t ask what you can
see”. A national survey of dis-
crimination last year found
two-thirds of people believed
the rights of gays and lesbians
were “hardly or not at all”
respected in Mexico — a pro-
portion rising to nearly three-
quarters when applied to atti-
tudes towards trans people.
Among the non-heterosex-
ual population, 30 per cent
had suffered discrimination in
the previous year, the survey
found. Worse, a study pub-
lished this year pointed to a
rate of at least six murders of
lesbian, gay, bisexual and trans
people every month on gender
identity grounds, with trans
people the most attacked.
FINANCIAL TIMES Thursday 25 October 2018
Because of discrimination,
many muxe drop out of school
and skip higher education,
limiting their career prospects.
Social acceptance often comes
from caring for their ageing
parents and a reputation for
industriousness.
“In many parts of Mexico, to
be a muxe or gay is synony-
mous with debauchery. Being
a muxe in Juchitán is synony-
mous with working,” says
Felina Santiago Valdiviesa, 50,
a hairdresser and activist.
“My father wanted me to be
an accountant, but I couldn’t
see myself in a shirt and tie,”
she says. Felina unsuccessfully
ran for election to a local state
congressional seat this year. “If
I’d had millions, it wouldn’t
matter how muxe I was, I’d
have won,” she adds.
Ironically, in the same elec-
tions, 17 men were found to
have faked being trans under
new rules in Oaxaca allowing
candidates to register based
solely on how they identify
themselves. Local electoral
law is particularly progressive
given that only three of Mex-
ico’s 32 states — not including
Oaxaca — let people change
their gender identities.
Muxe are traditionally seen
Watch the video
Muxes and their
families tell Jude
Webber about their
lives in Mexico’s
macho society
www.ft.com/muxe
as a blessing for a family. But
they also bear the cost of a life
with limited career prospects
and, at worst, outright rejec-
tion. Estrella says her late
father “hated me: he wanted to
kill me”.
Homosexual couples across
Mexico sometimes have to
jump through legal hoops to
marry even though the right to
same-sex unions was upheld
by the Supreme Court in 2015.
Indeed, the head of a far-right
party in the electoral coalition
of incoming leftist President-
elect Andrés Manuel López
Obrador has dismissed same-
sex marriage as a “fad”.
Darina Guerra Carballo, 32,
who has an older muxe sister,
lives with her partner Jesús
Gómez Reyes, 29, and dreams
of getting married, buying a
house and adopting a child.
“I think it’s normal,” says
Jesús, of his relationship — his
second with a muxe — or
“someone of her sex”, as he
puts it. He has two children
from an earlier relationship
with a woman. “Really, I don’t
consider myself gay, but I
probably must be because I
live with her,” he says.
Even muxe dressing as men
can suffer discrimination.
Nonetheless, the town of Juch-
itán remains “one step ahead”
of the rest of Mexico, says Elvis
Guerra López, a 25-year-old
lawyer and muxe, who dresses
as a man.
“I don’t care if they call me
‘he’ or ‘she’, as long as they
respect my rights.”
FINANCIAL TIMES Thursday 25 October 2018
Minority support needs a nuanced outlook
Profile
The BMA’s president talks
to Bethan Ashmead Latham
about being an outsider
The standard of mental healthcare
has been transformed since Professor
Dinesh Bhugra’s psychiatric training
in Leicester’s asylums during the
1980s. He points to the rise of
community care and the progress
made in reducing the stigma attached
to mental illness.
Yet whatever advances have been
made, people from minorities can
have very different experiences of
treatment, says the 66-year-old, who
this year was elected president of the
British Medical Association.
The India-born psychiatrist’s own
experience of “being a migrant and
gay allows me to look at things from
an outside perspective”, he adds.
Since moving to the UK in 1979, he
has dedicated much of his research
Modern Workplace LGBT+
and teaching work to examining how
cultural background and sexual
identity affect how patients
communicate their symptoms to
psychiatrists.
He argues that it is essential that
clinicians do not misunderstand
these nuances. “If psychiatrists do not
recognise the differences which affect
how patients from minority cultures
describe their experience, it can lead
to the wrong sort of clinical
investigation, and there are different
stigmas in minority communities
which may impact whether, and how,
people seek help,” he explains.
Last year, Prof Bhugra was ranked
top and in 2018 has been rated third
in the listing of leading LGBT+ public
sector executives. His work in
campaigning to protect the mental
wellbeing and rights of minority
groups is reflected in his professional
credentials. Aside from his year-long
stint as BMA president, he serves as
professor of mental health and
diversity at King’s College London’s
Institute of Psychiatry. Between 2014
and 2017, he served as president of
the World Psychiatric Association.
During his time at the WPA, he
pushed for policy improvements to
guard the mental health of minority,
excluded and vulnerable groups
across the world. This work included
support for LGBT+ people alongside
migrants, asylum seekers, the elderly
and those with learning disabilities.
In that role, Prof Bhugra advised
campaigners lobbying for the recent
scrapping of legislation banning gay
sex in India (see page 3). He has also
submitted evidence to Kenya’s high
court, which is examining the case for
decriminalisation of homosexual
acts. A decision on whether to amend
Kenyan legislation is expected in
November. Singapore has also
consulted the WPA in a similar
review, he says.
His family has known he is gay for a
long time but he did not come out
when he was young in India. His
professional work has covered the
difficulties faced by trans and gay
men in parts of India, such as
FTReports | 9
Mumbai, where, he says, “people are
still scared of coming out”.
He welcomes the increased
presence of LGBT+ support networks
within the medical community.
He saw the Association of LGBT
Doctors and Dentists (GLADD) grow
from a small group of five in the 1980s
into a large network today that
engages in public debates on political
and legal change.
Prof Bhugra explains that such
groups can be a good source of
professional support. There is value
in the shared experiences these
professional groups provide, where
senior practitioners can mentor the
younger LGBT+ professionals, he
says.
Beyond the help he has received
‘Being a migrant and gay from colleagues and that he
encourages elsewhere, it is the
allows me to look at support from his civil partner
things from an outside Michael, who manages a software
company in south London, that really
perspective’ stands out. “My partner has been
Dinesh Bhugra wonderful, he is my better half,”
he says.
102| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Thursday
TIMES 25 25
Thursday October 2018
October 2018 FINANCIAL TIMES
FINANCIAL Thursday
TIMES 25 25
Thursday October 2018
October 2018 FTReports
FTReports| |3 11

Modern
ModernWorkplace
WorkplaceLGBT+
LGBT+ Modern
ModernWorkplace
WorkplaceLGBT+
LGBT+

Inside
‘It is actually better to come
The next frontier
out’, companies
Financial Openly
‘No way gayback
Hungarian
for CEO embraces India’
corporate inclusion
explains insurance high-flyer
Transgender rights
move up the business
agenda as a ‘willingness choose to include
Stresses and
strains
How to
Profile
Talent Supreme
and out on graphics, text and video.
Mr Arvai has made a business of
the Budapest Pride parade, paving
the way for other companies to bring
helping people to share their ideas; he employees and corporate branding to
Diversity drives creativity has also brought his own story to
march and holds an annual
conference. More than 1,000
workplace
companies who are
have signed up tosaying,
its
to understand’ grows treat the annual event. ‘Enough is enough’,” Mr Sha-
manifesto.
Page 4 senior enough that it matters.” advance LGBT+ rights and
minority As a result, Ms Darlington During a a recent visit to a Court’s lifting of
and better decisions, Budapest’s business community, Prezi “coded diversity in from the Mrhani
Arvai says.
points “All
to these compa-
evidence that
Profile She took to heart what he said promote pride networks at
groups
and decided to be more open Aviva offices in countries such
argues that being open about hair stylist’s salon she used the
herOpenness
identify hasinpersonal the office and phrase “my other half”.
ban on gay sex
Prezi’s co-founder tells where was
executive.
the first openly gay chief beginning”, says Mr Arvai. “Being
inclusive is not just the morally right
nies
companies have
with
logos.achieve
diversity
put
higher
But webetter
up rainbow
levels
are not
of
going to
financial
Javier
TheEspinoza
OUTstanding meets lists
about who she was. when
as Canada, France, it and
Poland professional benefits.
Traditional
“Just every day you think frees workers to
Shannon Bond “In Sweden as a child, LGBT rights thing to do but it has a lot of benefits. takethan
returns tokenism. You can’t
the industry have
median,
the lesbian boss who of When, about a decade ago, Singapore. “I have more funfirms because areI whether you have that conver- whilepolicies not little
treating staff are
and
This year’s rankings she moved into a new team she
comes to
As a role model, Ms Darling- cannow more
tell stories palatable
about the whole sation,” she says. “I have to be more open, were still not very prevalent. I had no You think more creatively, you see
Peter Arvai knows the value of a good real role models,” he says. “I wanted things from varied perspectives.”
those with
morecustomers
likely to fall
diversity
equally.”
below the average.
became
Top 100 a role
LGBT+model introduced herself as having “amental ton, whohealthcare
has held other senior of for
my life so I think that I am think every time and stop Angela Darlington says Amy Kazmin
story. Growing up in Sweden, he loved to go and build companies, but that Prezi now employs 330 people at “The mostAs Ms Banerjeeargument
important sees it, evenis
wife and two cats”. “Being Eng- positions at Aviva including
LGBT+ people,
much better at my job now when I am talking.”
executives, allies, future Page 9 the folk tales his Hungarian-born didn’t seem to be something you offices in Budapest, San Francisco that companies that are not
people like McKinsey deeply
have
Angela Darlington thought she lish most people talked to me that of UK life chief risk officer, says
that I canJavier Espinoza
be completely hon- Overall her experience of same language that straight parents told him. When he moved to could clearly combine with having an and Riga, Latvia. The company has showncommitted to an bottom-line
you can correlate inclusive
and public sector leaders

F
had always been open about about the cats rather than my
Pages 6&7
Lights,
is aware camera,
that the way she est. The flip side is that I can coming out has been positive couples use.” Despite all the Budapest rom toearly
start achildhood,
company, openly gay identity. But then Sweden raised $71.5m in funding from agenda
results will have and
with inclusive no choice
diverse but
being a lesbian. wife,” she says. “That was the behaves
reaction now matters even hopefully get to be a positive and getting married to her positive steps when it comes to industrialbecame
communication engineer his focus. went through a huge transition in my investors, including the US venture to adopthe
companies,” inclusive
says. practices in
If somebody asked her beginning of my journey.” more than during the start of role
Tim model
Franks forstarted
other LGBT+the proc- long-term partner made a big advancing LGBT+ rights, Ms Anubhuti
“I think the best way Banerjee
to convey university years, and I felt supported capital firm Accel, and counts more the you
“How years ahead,
create as talented
an environment
whether she was, she would Ms Darlington, who became Thehersilver
career. screen blazes people
ess ofwho see that
coming out in it the
is actu-
work- difference, she says. “One of Darlington takes nothing for knowledge knew that she
is great was a Mr
storytelling,” to be openly gay. That gave me the than 100m registered users. “Today LGBT+ recruits
of inclusiveness seek
is by no welcom-
means
Mexico’s
never muxes
lie, although she would group chief risk officer at trail for
“Thegayhuman tolerance,
that you are ally better
place twotodecades
be out.”ago. the real freeing moments was granted. Arvai says.girl“I’ve
— even always if been
that courage to be Hungary’s first openly we have over 20 different ingto
limited employers that will
LGBT questions,” hetreat
adds.
notIndigenous
volunteer the information
‘third Aviva in 2015, is one of her says Nigel Andrews role
matters, not the technical She Asadds:
a gay“My family have
executive with a when we got same-sex mar- She believes there are still was not howinshe
interested how wasyouseen by
combine gay CEO, because I had seen that nationalities represented in our “Thisthem
is asequally
much about and with
beingdignity.
without being prompted. industry’s most prominent that you carry out,” she says. been
longnothing
career but supportive
at private equity riageRolein model:
the UK.Inga Beale of Lloyd’s pockets ofDawson/Bloomberg
laddish behaviour family and friends
storytelling within the smallto help
technology transition in my lifetime.” Budapest office. This is very unusual Prezi co-founder Peter Arvai welcoming“It isof
a competition for talent
people of different
gender’ faces
A male colleague at insurer senior executives promoting
Page 10
and yet inMr
firms, theFranks
workplace it still
at first
— Simon
spoke “I’ve had a civil partnership in financial services, including Indian
people town
make where
bettershe grew from
decisions, At a time when Hungary’s prime for a Hungarian company,” he says. and nobody
religious convictions,can afford
genderto andstay
conflicting
Aviva, where she has worked LGBT+ rights. remains
to people something
close toofhim a chal-
about with my nowthe
including wife
UKfor 11 years.
have made it insurance.
themselves ‘can I be one of up.howThree
we years
judge ago, Ms Baner-
a business opportunity minister, Viktor Orban, is embracing At orientation sessions for new leadership, Prezi has joined forces otherbehind,”
aspects,she likesays. “There
whether are aare
people
attitudes
since 2001, once inchallenged She is also part of the OUT-How ‘I
inclusivity
think that I am lenge.” She still finds
his sexuality herself
but over timein it That’s
legal when
for LGBT+society gavetome
people form But themsheone adds:
day?’ “Progress
whether jee,to28,
how began her long-awaited
we judge other people.” an authoritarian vision of “illiberal employees, Mr Arvai sets the tone for with Google and Espell, a Hungarian lot of or
introverts companies
extroverts.that would
Are you
heraabout
macho her identity. standing lists, presented by drives creativity
the situations
started toaway become from work permission
an integral to say ‘partner’.
civil partnerships and mar- does not always
they’re female,goLGBTQ in oneor transition,
In 2009,transforming
with two co-founders,her reflects
Mr the dramatic which
democracy”, changes around a decade
included theago, initially
openness he prizes. “The most
Consigned to history:translationconfident
company, toLGBT+ employees,
bring this havean
creating preferred
environment to hide behind
where
Ms Darlington, 50, says: “He Financial Times, which cele-
society TechmuchleaderbetterPeterat myArvai where
part she
of whostops before
he was decid- That
at work. [word]
riages, added
which 10 perexperts
industry cent direction
anotherand we need to keep
minority.” body
Arvai sofounded
that others could under way
the presentation in corporate
appearing India, led
at a conference heldbybymultinational
a effective compa-
thing anyone can docelebrate
marchers to message to who
India’s areaudience
a wider actively networking
through to ‘It is
people not
can legal —themselves?”
express we are not able
told me that without thinking brate LGBT+ executives that ing to “Itlet other
takes a lotpeople
of effortknow
if you to point
the number
to as anofimportant
times when cata- role The
modelslack visible to makehas
of role models finally
softwaresee maker
her as Prezi.
the womanUnlike where large companies
US group opposed have niesrights,
to LGBT+ such as IBMencourageand Goldman openness is being open
scrapping WeAreOpen,
of a law banning share experiences
a campaign groupin the fight Living
to support,
up to his so too
ideal of bad.’
being an But
about
Pageit8 [I was] being a role create supportive workplaces job now that
on being Hungary’s first I can be sheareis not
gayable
andto still
feelfaces situa- I’ve
comfortable had
lyst foran openopenness.
wider conversation sure that we
affected neversuch
sectors go back-
as asset shePowerPoint’s
always knewlinear herself to be.
series begun adopting
of slides, Mr Arvaimore
andinclusive Sachs, which brought
Prezi champion theirown
with their glo-personal
gay sex identity and for benefits
promoting workplace and equal
diversity that treat-
openeveryone is starting toheaccept
leader is demanding,
model for it not being OK to be for their LGBT+ colleagues. completely
openly gay CEO honest’ tions
in thewhere she useswhere
environment terms you becauseBut it feelsinitiatives
these very easy areto meonly wards from the good
management, place that to
according Throughout
Prezi is designed her journey,
to createMs free- workplace policiesand
diversity as they vie Inbal
inclusion. human
2010, Prezi resources
beingpractices
open to meeting people with
Adnan Abidi, Reuters
encouragesment. “There
companies are ‘out’ people
to get it. Corporate
concedes. India does
“I feel it challenges menotto
out at Aviva because [I am] She uses her senior position to
Page 11 that aresays
are,” ambiguous.
the dealmaker at the to scratching be able tothe usesurface,
exactlyaccord-
the weAlan are in.”
Mason, a managing direc- Banerjee
flowinghad an unlikely
presentations ally:
that zoomtoinsecure became
talent. the first companytototheir marchIndianin arms.
other identities,” he says. Under his in Budapest’s
involved with India in Pride
the corporate have aversion
be a better way back ofany more.”
myself.”
US buyout group KKR in ing to many in the industry. In tor and head of Americas her employer, Tata Steel. The That process is expected to But the movement gained
London. “You’re coming out the US alone, 46 per cent of portfolio engineering for century-old, steelmaking arm progress rapidly after the momentum in 2009, when
all the time.” LGBT+ workers remain “clos- BlackRock’s exchange traded of India’s Tata Group had just recent Supreme Court verdict Delhi High Court ruled that

Silver screen
These days, however, it eted”, according to a report by funds and index investments begun to talk about workplace striking down Section 377, a Section Call Me377 could
By Your Name notwon be
requires less effort for him to the Human Rights Campaign business. diversity, when Ms Banerjee — colonial-era provision that applied the Oscarto consenting adults —
for best adapted
be open about his sexuality. He Foundation. More than half of “The retention of diverse who had joined the company’s criminalised “carnal inter- a dramatic screenplayturning this year point in
is married and alongside his these employees report hear- employees is critical,” he says. management trainee pro- course against the order of India’s gay rights movement

blazes trail
husband is raising a family. “I ing jokes about lesbian or gay “I believe that we get better gramme two years earlier as a nature”, making it punishable that brought
Idaho), Britain’smany AndrewLGBT+Haigh
get asked about the kids and people once in a while. results for our clients because man — told executives about by lengthy prison sentences. people “out ofand
(Weekend) theThailand’s
closet”.
then about the wife,” he jokes. Many companies in Europe of having an inclusive team.” her transition plans. Though gay rights advocates Pioneering
Apichatpong companies
Weerasethakul. such
Just as Mr Franks has gradu- and the US do not keep records More inclusive behaviour in While the company’s chief had argued that Section 377 as His Godrej,
darkly thelyrical
consumer movies goods
—

for tolerance
ally become more comfortable of the proportion of their other industries is also making diversity officer pledged sup- prohibited a sexual act and not company, took steps
Tropical Malady, the to make
Cannes
at work, private equity and LGBT+ workers, sometimes it harder for asset manage- port, the following year was a gay identity, the provision’s workplaces more inclusive,
Golden Palm-winning Uncle
other financial services sectors for reasons of privacy. Singa- ment and some other financial challenging learning experi- presence on the statute books with non-discrimination
Boonmee Who Can Recallpoli- His
dominated by a straight male pore and India have poor services sectors to attract tal- ence for both Ms Banerjee and was enough to deter many cies Pastand
Livesemployee
— incorporate support
gay
workforce are increasingly records of encouraging com- ent, says Chris Cummings, her colleagues in terms of cre- companies from adopting groups, subjectswhile some
as part ofbusinesses
a larger pan-
more palatable places for peo- panies to be more inclusive, chief executive at the Invest- ating an enabling, inclusive LGBT+-friendly policies. have adopted
sexual visionsame-sex
of a worldpart-
OPINION
ple who are lesbian, gay, bisex- constrained by a history of ment Association, the trade environment for an employee “There were a lot of compa- nertranscending
benefits. diktat and taboo.
ual, trans or gender fluid. anti-gay laws. body that represents the UK’s undergoing gender transition. nies who thought 377 was a InA2013,
hit at thistheyear’sinclusivity
Cannes
Nigel Andrews
More companies are taking There is also a lack of LGBT+ asset management industry. “In a way, they transitioned block to moving forward,” says agenda festival,suffered
and winnera significant
of the
steps to make their workplaces role models, which in turn is He says: “We have an as they helped me to transi- Ritesh Rajani, an LGBT+ setback Zurich when the Supreme
Film Festival’s top
more inclusive environments. ongoing talent battle. We are tion,” says Ms Banerjee, who employee at US computing Court prize,overturned
was Girl by the theBelgian
2009
These actions include sup- competing neck and neck with started working at Tata in the group IBM, who is active in Delhi High Court
film-maker Lukasjudgment,
Dhont. A
port for LGBT+ networks and technology and media, places company-run town of Jam- promoting inclusivity. “But and reinstated
girl in a boy’sSection
body dreams 377 —ofa
When Moonlight
festivals won thediversity
promoting Oscar liberalsIn America,
thought was46% won of another
wherelesbian
they have lovebuilt
story,
a reputa- shedpur,
(2009), but a dramamore recently
about same- now a lot
of the of companies
Thomas Mann storyare verdict being athat dismissed gay
ballerina.
forand
bestinclusion,
picture in 2017, such LGBT
theas the ground. employees
Though you could Carol
tion(2015),
of beingwinmore
prizeswelcoming. wassexalove
customer
among relationship
orthodox Jews, coming aboutforward andobsession.
paedophile want to be people Whatas amight
“minuscule
have been,minor-10
film world’s liberals
insurance sector’sthought
Dive In initi- argue that the Oscars are still worldwide;
We wantand a gaytoteenage
people feel com- manager
or I Am based
Gay andinMuslim
Kolkata. “It inclusive.”
(2012), Later there were Neil ity” andago,
years thwarted the drive
a bold, strange, even
they had died
atives and gone tocelebra- in there
and corporate
remain ‘closeted’,
shouting for artistic romcom,
fortableLove, Simon (2017),
in themselves.” was a transitionchallenging
a documentary for [Tata The first
Jordan’s Themoves towards towards
Crying Game inclusive
unthinkable workplaces.
subject for a
heaven.
tions of Pride Month. according
freedom and noveltyto —a the
study breakIndustries
precedent byneed becoming to try Steel]
Islamicto being
prescript a much more more
in Morocco, inclusive
(1992), corporate
Orlando (1992), with “Many
feature film companies
is now part got of
cold
the
Surely
Theyitcanwasalso
a dream?
involve Notwider 2018 best picture winner The a box-office
harder tohit. make workplaces a sensitive workplace,
give utterance to thewhich
“love thatis workplaces
Tilda Swintonin changing
India began sex feet and said,
screen ‘Let’s stop.
vernacular. This Let’s
may
just a low-budget
political advocacymovieon by work-
a Shape of Water, a story of Also earning environment
welcoming attention have for going
daresto benothelpful
speak its forname”.
others.” through the ages, Philadelphia dial bethis down, consolation
the biggest and let’s wait and
barely-known
place diversity. director, Barry interspecies
hurting romance,
the prospectswas of been a Gallic
LGBT+ gay movie,
workers, says Theo
Amanda Over the past few years,
Outspokenness is partTata
of (1993), the HIV drama forencouragement
clarity’,” says Parmesh for world Sha-
Jenkins.
RoleNot just an
models for diversity of seen by somenew
attracting as a fable
talent,of says
love-Jay andBlanc,
Hugo,head
unprecedented in
of the Association Steel’s
coming human
out. Andresources
nowhere poli-
has starring Tom Hanks, and hani, headtoday,
citizens of thedismayed
Godrej India by
independent
sexuality film have peopledgradually across-all-barriers
Sammons, an — the year’s at sexual
executive explicitness
of British for a and of
Insurers cies havepossible
it been been overhauled
for voices of to Brokeback Mountain (2005). Culture Lab, a venueadvance
the social-political for dis-of
almost
become entirely
more by black
prominent in actual gay hit, the warmlyprivate commercial
Washington-based release, and
Zurich’s European a
business. make them LGBT+
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