Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
data accelerate dash into bonds A team of hackers has been carrying out espionage
operations for Beijing while attacking video games
for cash in an usual blurring of commercial cyber
crime and state-sponsored activities.— PAGE 4
INTERNATIONAL
Brics lender aims to shift from dollar funding fame playing the president on televi-
sion, Mr Zelensky made a ceasefire one
of the central elements of his election
campaign.
But the Kremlin has continued to
ratchet up pressure on Mr Zelensky
New Development Bank plans since he took office in May. Mr Putin
to emphasise local currencies expanded a plan to give out Russian
passports to residents of the conflict-hit,
and double loan book to $16bn Russian-speaking Donbass area of east-
ern Ukraine, while talks over a possible
prisoner exchange have stalled.
TOM HANCOCK — SHANGHAI
The Kremlin said Mr Putin had told
The New Development Bank, a lender
owned by Brazil, Russia, India, China
and South Africa, is aiming to almost
‘Extremely disappointed
double its lending this year and shift its with ceasefire violations,
loan book from the US dollar to empha-
sise lending in local currencies.
leading to four killed’
The NDB, or Brics bank as it is other- Kurt Volker, US special envoy
wise known, has approved more than
$9bn in loans in its member countries Mr Zelensky that “de-escalating the
after being founded four years ago. It is conflict foremost requires stopping all
seen as a challenger to established lend- further shelling of residential areas in
ers such as the World Bank, Asian the Donbass by Ukrainian troops, which
Development Bank and IMF. is creating civilian casualties”. The
The bank plans to increase its loan phone call yesterday was the second
book to $16bn this year. So far it has between the two leaders since Mr Zelen-
mainly relied on its dollar paid-in capi- sky became president.
tal for funding but, in the future, “50 per Mr Putin pushed Kiev to give the
cent [of projects] should be local cur- breakaway areas — which Russia claims
rency financed”, KV Kamath, the bank’s not to control despite abundant evi-
president, said in an interview. dence to the contrary — special status
The bank, based in Shanghai, issued a under a potential peace deal, although
second Rmb3tn ($426bn) Chinese cur- this would be politically unpalatable in
rency bond this year, and after it re- Ukraine. While the 2015 Minsk agree-
ceived a double A plus rating from Fitch ments aimed at freezing the conflict
and S&P Global last August, but also have broken down, both Russia and
plans to tap bond markets in the US, Ukraine have discussed holding further
according to a person familiar with its peace talks under the so-called Nor-
plans. Forward step: greenhouse gas reduction project in the risks, but have run into difficulties rais- ‘We will “We want to aim at doing a project in mandy format, which includes France
“We will raise dollars, we will raise a couple cross country. The bank expects to account ing funds in local capital markets. 90-180 days. We have demonstrated and Germany.
euros, but at the same time there will be a stream near a for 11 per cent of South African infra- The bank will not be able to move raise dollars, over the past two years that it is possible Speaking alongside Mr Zelensky at
a significant reliance on local curren- defunct power structure funding by 2021. away from dollars entirely. “There’s a we will raise to do that without sacrificing quality,” the briefing, Ruslan Khomchak, armed
cies,” Mr Kamath said. station in But the bank has only disbursed 7 per constraint that you can’t disrupt the US said Mr Kamath. forces chief, said the four Ukrainian
That would allow the bank to move Soweto, South cent of the loans it has approved, dollar system. If you did [the US] would euros, but at The bank’s project approval times are fatalities on Tuesday resulted from a
from loans denominated in dollars. Africa. The according to its latest annual report. find a way to go after you,” said a person the same about one-third of those taken by other rocket-propelled grenade attack.
Lending so far has mostly gone back country’s That is a “warning sign it may be rush- close to the bank. big development lenders, according to a The latest flare-up increases the death
to its founder countries, which have a electricity ing projects to approval without suffi- The bank has fewer than 200 staff and time there staff member. toll in a conflict that has claimed more
collective credit rating of triple B minus, infrastructure is cient preparation”, said Chris Hum- had not appointed a chief economist will be a The five countries have equal shares than 13,000 combatant and civilian
and so can borrow at lower rates though in need of phrey, a development finance resear- until last month, when China’s David in the bank. lives, making it the bloodiest on the
the higher rated bank. investment cher at the Overseas Development Insti- Daokui Li was hired. It has attempted to significant Speed is made possible as the bank European continent since the Balkan
“It’s basically financial engineering,” Siphiwe Sibeko/Reuters
tute in London. distinguish itself from other develop- reliance on works closely with borrower countries’ wars and the longest since the second
pointed out Mr Kamath. However, the move to lend more in ment banks by emphasising “sustaina- own development banks and agencies world war. Moscow denies claims by
Loans approved mainly cover trans- local currencies should be welcomed, as ble development” rather than poverty local and tends to use local standards rather Kiev and its western backers that it
port, energy and water management “too many developing countries borrow alleviation as its main goal. currencies’ than international ones in terms of fomented the conflict after annexing the
projects, such as $620m for the con- excessively in foreign currency, which Its lending is still small relative to social and environmental safeguards, Crimean peninsula in 2014.
struction of an airport in northern leads to dangerous FX risk exposure”, organisations such as the Asian Devel- KV Kamath, said Hongying Wang of Canada’s Uni- Commenting on Tuesday’s killings,
China, $350m for rural roads in India’s he added. opment Bank, which approved $21.6bn president versity of Waterloo, who has studied the Kurt Volker, the US special envoy to
Bihar and $320m for water sanitation Development lenders such as the in loans and grants last year. bank. Ukraine, wrote on Twitter: “Extremely
projects on Russia’s Volga river. World Bank’s International Finance But its loan book is slightly larger than “This model could potentially offer disappointed with new ceasefire viola-
This year the bank announced a Corporation and the European Bank for that of the higher profile China-led greater legitimacy and efficiency. It tions, leading to four Ukrainian soldiers
$180m loan to South African power Reconstruction and Development have Asian Infrastructure Investment Bank, could also increase the social and envi- killed by Russian-led forces — especially
company Eskom to fund renewable also tried to increase local currency which was established around the same ronmental risks of investment,” she at a time when the new Ukrainian presi-
energy projects and a $300m loan for a lending to reduce foreign exchange time. added. dent is making gestures for peace.”
But in a U-turn last month Giuseppe leave office with immediate effect. Dur-
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
Conte, prime minister, said that ing the election campaign Mr Mitsotakis
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017
The Italian Senate has given its Kyriakos Mitsotakis, Greece’s new
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15
rail link with France, amid deepening first political test over his decision to
March 2019, when Brexit is due to be complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
completed, and the chair of the probe linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
said confidence it would be operational tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
in time “has collapsed”. HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image
FINANCIAL TIMES divisions between Italy’s fractious coa- replace the head of the independent
About 53 per cent of British imports apparent in a number ofkey areas”. Credit
needs Suisse hascustomers.
of transgender been targeted by
— PAGE 20 HM Revenue & Customs said it had
come from the EU, and do not require HMRC said last night: “[CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
checks because they arrive through the track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
single market and customs union. But and it will be able to support frictionless back Switzerland’s attempts to clean up dering by “a global financial institution
Datawatch
Central, Hong Kong. Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14 western Europe
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.
ment, which has links to environmental of resistance”. They warned that the legislative package that would lead to debate in parliament, with Syriza law-
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
Subscriptions and
JENNIFER THOMPSON — LONDON
Pil-Dong, Jung-Ku,
stance on Brexit Seoul, 100-728
Christopher Niehaus, a former Jeffer- ban people from installing apps on their
ies banker, passed confidential client private phones.
Brussels takes tough
A boastful WhatsApp message has cost
a London investment banker his job information to a “personal acquaint- Andrew Bodnar, a barrister at Matrix
and a £37,000 fine in the first case of ance and a friend” using WhatsApp, Chambers, said the case set “a precedent
Shutdown risk as border according to the FCA. The regulator said in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57
wall bid goes over the top nications over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything
chat app. to his employer voluntarily. else”.
Customer Service Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus
line, which would run for 270km what happens if he tried to turn a hostile The legislation bans former minis- legally acceptable for such a decision to
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and
US budget Q&A and accessed without permission from the issued BlackBerrys. 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
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned Bankers at two institutions said staff 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
WhatsApp from work-issued Black- are typically trained in how to use new 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.
between Turin and Lyon, while coali- territory into a building site”. ters, senior civil servants and govern- be applied retroactively.
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
STOCK MARKETS CURRENCIES INTEREST RATES
Tel: 0800 298 4708 expected to cost councils’ care services Spain the right to veto any EU-UK trade insistence on a continuing role for the Reports & analysis page 3
Advertising
Mar 30 prev %chg Mar 30 prev Mar 30 prev price yield chg
£360m in the coming financial year. deals covering Gibraltar could make the European Court of Justice in any transi- Jonathan Powell, Tim Harford &
For the latest news go to S&P 500 2365.93 2361.13 0.20 $ per € 1.074 1.075 € per $ 0.932 0.930 US Gov 10 yr 98.87 2.38 0.00
Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11
www.ft.com Nasdaq Composite 5902.74 5897.55 0.09 $ per £ 1.249 1.241 £ per $ 0.801 0.806 UK Gov 10 yr 100.46 1.21 -0.03
Madrid and London an obstacle to Brussels sees little room for compro- Henry Mance page 12
Dow Jones Ind 20703.38 20659.32 0.21 £ per € 0.859 0.866 € per £ 1.164 1.155 Ger Gov 10 yr 98.68 0.39 -0.01
© THE FINANCIAL TIMES LTD 2017 FTSEurofirst 300 1500.72 1493.75 0.47 ¥ per $ 111.295 111.035 ¥ per € 119.476 119.363 Jpn Gov 10 yr 100.45 0.06 0.00
No: 39,435 ★ Euro Stoxx 50 3481.67 3475.27 0.18 ¥ per £ 139.035 137.822 £ index 76.705 76.951 US Gov 30 yr 100.14 2.99 0.01
Printed in London, Liverpool, Glasgow, Dublin, FTSE 100 7369.52 7373.72 -0.06 € index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr 102.58 -0.75 0.00 Subscribe In print and online World Markets
S&P 500
Nasdaq Composite
Dow Jones Ind
Mar 31
2367.10
5918.69
prev %chg
CURRENCIES
0.932 US Gov 10 yr
0.801 UK Gov 10 yr
1.164 Ger Gov 10 yr
price
98.63
100.35
99.27
yield
2.41
1.22
0.33
chg
-0.01
0.02
-0.01
tion partners the League support it. The coalition parties have been ment advisers from being appointed to Ms Thanou served briefly as Greece’s
© THE FINANCIAL TIMES LTD 2017 FTSEurofirst 300 1503.03 1500.72 0.15 ¥ per $ 111.430 111.295 ¥ per € 119.180 119.476 Jpn Gov 10 yr 100.36 0.07 0.00
Yesterday, a motion in the Senate by increasingly at odds in recent weeks regulatory positions for five years after first woman prime minister in 2015,
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 3990.00 4011.01 -0.52 SFr per € 1.071 1.069 SFr per £ 1.252 1.244 price prev chg
Chicago, San Francisco, Washington DC, Orlando, CAC 40 5122.51 5089.64 0.65 COMMODITIES Fed Funds Eff 0.66 0.66 0.00
Tokyo, Hong Kong, Singapore, Seoul, Dubai Xetra Dax 12312.87 12256.43 0.46 Mar 31 prev %chg US 3m Bills 0.78 0.78 0.00
Nikkei 18909.26 19063.22 -0.81 Oil WTI $ 50.46 50.35 0.22 Euro Libor 3m -0.36 -0.36 0.00
Hang Seng 24111.59 24301.09 -0.78 Oil Brent $ 53.35 53.13 0.41 UK 3m 0.34 0.34 0.00
Letters to the editor in any manner is not permitted without the Five Star to block the project, known as over tax cuts proposed by the League, leaving office. Ms Thanou is the only one heading a caretaker government before
letters.editor@ft.com publisher’s prior consent. ‘Financial Times’ and the TAV, failed when the League voted greater regional autonomy and Five among 22 heads of Greek regulatory a national election. She was appointed
‘FT’ are registered trade marks of The Financial
Published by Times Limited.
with the opposition in favour of comple- Star’s decision to back a mainstream bodies who faces dismissal. to run the competition authority in
The Financial Times (HK) Limited, Unit 5905-5912, tion of the line. German candidate, Ursula von der The government argued yesterday January and gave up her position as the
59th Floor, The Center, No.99 Queen’s Road, Central, The Financial Times and its journalism are subject to Reopening negotiations on the rail Leyen, to become president of the Euro- that the retired senior judge and legal premier’s legal adviser to serve a five-
Hong Kong. a self-regulation regime under the FT Editorial Code
Editor: Lionel Barber of Practice: www.ft.com/editorialcode
project, which was started almost two pean Commission. Mr Salvini warned adviser to Alexis Tsipras, the former year term. Her appointment was
decades ago, was part of the coalition before the vote that if TAV were blocked prime minister, could not run an inde- announced by Mr Tsipras’s office and
Printed by Reprints are available of any FT article with your contract agreed between Five Star and he would consider early elections. pendent regulatory body because of her ratified by parliament.
Australia: Spotpress Pty Ltd, 24-26 Lillian Fowler company logo or contact details inserted if required the populist League last year. Opposition MPs claimed that the ten- close ties to his administration. Ms Thanou insisted she would not
Place, Marrickville, NSW 2204 (minimum order 100 copies). One-off copyright
Hong Kong: Kin Ming Printing Co Ltd, licences for reproduction of FT articles are also A cost-benefit analysis of the project sions showed the coalition’s days were Mr Mitsotakis, whose New Democ- quit. “I’m a technocrat and I have never
15/F BLK A, 18 Ka Yip Street, Ming Pao Industrial available. led by a ministry of transport panel in numbered. “The government’s majority racy party won a sweeping election been a member of a political party,” she
Centre, Chai Wan; Representative; Angela Mackay; For both services phone +44 20 7873 4816, February found that the costs out- no longer exists,” said Andrea Marcucci, victory over Mr Tsipras’s Syriza last said. “I consider this process illegal . . . I
ISSN 1025-918X or alternatively, email syndication@ft.com
weighed the gains by €7bn. a senator for the Democratic party. month, said that Ms Thanou should have been personally targeted.”
Thursday 8 August 2019 ★ FINANCIAL TIMES 3
INTERNATIONAL
Stimulus measures
Indian central
measures as well as further tariffs. Sepa-
rately, the central bank yesterday
announced stimulus measures designed
to boost lending to consumers and trou-
bank battles
bled shadow banks.
RBI governor Shaktikanta Das,
appointed last year after a spat with the
Modi administration over central bank
independence, has embarked on rate-
global slowdown
cutting. But some economists question
the wisdom of the RBI’s willingness to
keep cutting rates, particularly amid
concerns about its independence. While
Security lockdown
INTERNATIONAL
South Korea public backlash unravels Japan ties base text of the bill will undergo a review
in the lower house, then a senatorial
commission, and two votes before full
sessions of the Senate for final approval.
Senior lawmakers have said they
expect final approval of the legislation
Relations sour between US next month, but analysts said it could
allies as dispute over wartime stretch into October. By raising the
retirement age of many Brazilians and
forced labour reignites reining in pensions payment obliga-
tions, the legislation seeks to tackle the
SONG JUNG-A AND EDWARD WHITE
SEOUL
KANA INAGAKI — TOKYO
Members of the rightwing
Son Yong-jin was not thinking about the administration of
consequences when he raised a steel
pipe above his head and smashed it on
President Jair Bolsonaro
to the roof of his most prized possession: have championed reform
a silver Toyota Lexus worth $45,000.
Even now, the South Korean, who as a state’s precarious fiscal position with
result of destroying his car has to ride savings of about $230bn over the next
the bus to work while braving the fury of decade.
his incensed spouse, said he had “no Rodrigo Maia, Speaker of the lower
regrets” about the act, part of a growing house, who has been critical in building
Korean boycott of Japanese goods. support for the bill, has said that with-
“I was too ashamed to drive a Japan- out the reform pension spending would
ese car after what Japan did to our coun- balloon to 17 per cent of gross domestic
try,” said Mr Son, 47, who runs a small product in the next 40 years, leading to
shop in Incheon, near Seoul. a “social collapse”.
The patriotic sacrifice of his vehicle — Members of the new rightwing admi-
images of which went viral last month — nistration of President Jair Bolsonaro
captured anger over Tokyo’s colonial era have championed the reform, mainly
rule of Korea that is escalating into a Paulo Guedes, finance minister,
trade war between the neighbours. and Rogério Marinho, social security
Tokyo and Seoul are perennially at secretary.
loggerheads over historical and territo- “Victory for Brazil,” tweeted Onyx
rial disputes, but the latest flare-up, Lorenzoni, Mr Bolsonaro’s cabinet chief
which stems from a South Korean court after the voting session in Congress.
ruling last year that allowed individuals The pension reform proposal was ini-
to make compensation claims for war- tiated under Michel Temer, Mr Bol-
time servitude against Japanese compa- sonaro’s predecessor, but stalled after
nies, is among the most severe in years. Street fury: Japan was using trade to address an self-immolation outside the Japanese ‘People don’t is something they can exploit against the former president was implicated in
Japanese premier Shinzo Abe’s gov- South Koreans essentially “political problem” of colo- embassy in Seoul. Both later died. American interests,” said Go Myong- graft claims. Since Mr Bolsonaro’s elec-
ernment believes the issue was resolved denounce nial reparation. “I am so angry because Abe does not even hyun, a research fellow at the Asan tion last year, however, most lawmakers
through a 1965 treaty, and $500m paid Tokyo’s trade “What is now happening between Jap- show any remorse about the past,” said pretend it is Institute for Policy Studies in Seoul. have come round to the idea of reining
to South Korea in aid and loans at the restrictions on an and Korea, it is like a cancer metasta- Yang Geum-duk, 91, who was forced to Despite these worries and concerns in Brazil’s vast system of social welfare
time, and has called for arbitration, in their country sising of Trump’s weaponisation of make aircraft parts at a Mitsubishi fac- about within Japan’s business community, payments, which has undermined the
line with the terms of the pact. outside the trade,” Mr Lamy said. tory in Nagoya when she was 12. “I something analysts said Mr Abe was unlikely to state’s ability to invest and led to ever
The administration of Moon Jae-in, Japanese “People don’t even pretend it is about haven’t heard a word of apology for my alter his stance against Seoul, with polls higher taxes.
the South Korean president, however, embassy in something else [and] use trade for a suffering for the past 70 years, let alone else [and] in Japan showing support for the export International businesses say they
has resisted such calls and has refused to Seoul on totally political reason.” compensation.” use trade for controls as high as 71 per cent. Mr Moon are holding off investing in Brazil until
overrule the courts, leading Japan to Saturday In South Korea, a campaign to boycott The public backlash is expected to also might be tempted to take a harder the reform passes, describing it as a lit-
declare a breakdown in trust and im- Ahn Young-joon/AP
Japan-made goods and services has only intensify after Tokyo on Friday a totally line ahead of a legislative election next mus test of whether Mr Guedes and his
pose a series of export controls on prod- snowballed since July, when Tokyo im- removed South Korea from a “white political year. team will be able to pass a broader eco-
ucts critical to South Korea’s technology posed restrictions on shipments of three list” of trusted trade partners, a move Seoul, to try to reduce its reliance on nomic agenda, including deregulation,
groups, a move that is hurting the South chemicals essential for making memory that risks further slowing supplies of reason’ Japan for electronics components, has an overhaul of the unwieldy tax system,
Korean economy and threatening to chips and display panels, which are equipment, components and materials already announced plans to invest and privatisations.
upset global supply chains. among South Korea’s top exports. critical to manufacturing groups such as $6.5bn to shore up its tech industry. Many hope the passage of the bill will
Despite Tokyo’s insistence that the Tens of thousands of retailers have Samsung, SK and LG, which underpin Officials are eyeing whether to scrap a restore confidence in the Brazilian econ-
export controls are not related to the stopped selling Japanese beer and ciga- the South Korean economy. military intelligence sharing pact, in a omy, which is facing the prospect of a
dispute, South Korea regards them as rettes in recent weeks, while petrol sta- The unravelling of diplomatic ties potential blow to the security alliance technical recession in the second quar-
retaliation. This has raised fears among tions and garages are refusing to fill up between Japan and South Korea, two among the US allies. And South Korean ter after suffering a first-quarter con-
some experts that Mr Abe has adopted a or service Japanese cars. Sales of Japa- cornerstone US allies in Asia, has also tech companies are testing potential traction.
similar stance to US president Donald nese vehicles have fallen. Korean air- worried Washington, coming against an substitutes for the Japanese products, Economist Marcos Lisboa, president
Trump, who has been criticised for lines are reducing flights between the upturn in missile tests by North Korea including from China. of Insper business school, has warned
using punitive trade measures against two countries and some politicians are and moves by China and Russia to “This is not good for both sides. They that, although critical, the pension
China for political reasons. calling for an outright travel ban. expand military activities in the region. will all suffer if the trade spat drags on,” reform alone would not “mean
Pascal Lamy, former director-general In the most extreme protests, two “China and Russia can see there is a said Eom Chi-sung, a director at the the economy will start growing
of the WTO, said he was “very worried” men in their 70s, separately attempted gap between Korea and Japan, and that Federation of Korean Industries. automatically”.
Currency devaluation
ARTS
P
Stones Have Laws
lace your bets now. Blinded Tolin Alexander, Lonnie van Brummelen,
by the Light is surely set to be Siebren de Haan
a stage musical. Gurinder AAAAE
Chadha’s new film is Billy
Elliot with racial tweaking The Art of Racing in the Rain
and Bruce Springsteen songs. Once Simon Curtis
again a British boy (Viveik Kalra) rebels AAAEE
against an overbearing parent to
embrace his music and his muse. Once Notorious
more the big set-piece is a dance Alfred Hitchcock
through the hero’s native streets — AAAAA
Luton replacing County Durham —
while joy abounds and extras gawp.
Hard to believe a twinkle-toes version
for Theatreland doesn’t beckon. loving detail a man is observed fraying a
This movie’s other godparent is palm branch into an ornate mini-arch.)
Chadha’s Bend It Like Beckham. She por- And it renders truth and history into a
trays immigrant families with warmth vernacular at once free and formalised,
and idiosyncrasy. They don’t seem like jubilant and ironic. In the almost-last
figures in a feel-good panto, or not often; scene, characters discuss the documen-
nor peons of morality storytelling work- tary itself: its genesis, its agenda, and the
ing the political correctness fields. (This possibility, even faint, that it is just a
story’s original teller was Sarfraz Man- Trojan horse heralding more invasion
zoor, here co-adapting his memoir by the white man and his spirit.
Greetings from Bury Park: Race, Religion, Kevin Costner voices a dog’s thoughts
Rock ’n’ Roll). for the duration of The Art of Racing in
Javed, played by Kalra with instant the Rain. The brain cowers; the soul
likeability, is an Anglo-Pakistani 16- Above: Viveik Kalra as the overcook its fairytale optimism and pregnant with woe or poignancy, that we native islanders whose slave forebears screams; it’s too much to contemplate.
year-old. Sprung from the family nest by Springsteen-obsessed hero undercook its characters’ nourishing begin to feel worked over. Everything is haled from Africa. They drew out their But we critics have to sit through
Spingsteen-mania, instilled by a school- of ‘Blinded By the Light’ reality. But fidelity of time and place true, we’re sure: except perhaps for stories, proverbs and wisdoms; then these things. And the film is not really
pal, he defies an authoritarian father Below right: Cary Grant just about hold out. Time: the late 1980s those shots of the teenage girl from transformed them into scenes of drama- that bad.
(Kulvinder Ghir) preaching filial obedi- and Ingrid Bergman in and the long haul of the austerity wealthier Gaza playing her cello on a recitative set like tableaux vivants in Garage mechanic and wannabe racing
ence and conformist careerism. “Do Hitchcock’s ‘Notorious’; Thatcher years. Place: that Britain of promontory overlooking the sea. She scenic exteriors. Riversides; forests; driver Denny Swift buys Enzo as a pup
what the Jews do, they’re successful,” Milo Ventimiglia and Enzo combustive but sporadic and scattered really does this? Really sits like a lament- craggy vales. and watches him grow. He becomes a
orates dad, though he doesn’t think any in ‘The Art of Racing in racial tensions. ing angel sounding her earthly harp? One foundation myth is a Flood vari- lolloping, full-grown Labrador, his inner
better of The Boss when insistently the Rain’ Eyeless in Gaza. The Miltonic phrase Anything could be true, of course, in ant. Others feature jungle gods and spir- soliloquies delivered in that slow,
misattributing Jewishness to him. sums up one of documentary movie- this 27-miles-by-seven strip of land its. The archetype of the white-man cowlick monotone Costner has made a
Javed goes on to find love, though in making’s longest sightless interludes. containing 2m Palestinians. We know slaver is here, now remade into a speciality, sometimes even a thing of
this film that comes perilously close to Where has the long, unflinching gaze from the daily news the stories of destroyer of forests. If the movie sounds grace. Milo acquires a wife (Amanda
lurve. The romance plot is perfunctory; been — till now — at the Middle East’s death or injury by the border fence. like a chastisement exercise, it is; but Seyfried), a daughter, a mum-in-law
the real love interest is Bruce. And you’d most infamous piece of land? At that cli- We watch here the young rebels more too. It celebrates a people’s animist (Kathy Baker) and a delectably nasty
better like his music because you’ll ent penitentiary of Israel, squashed sling-shotting their rocks. We meet the creeds and dreams: “The way we are dad-in-law (Martin Donovan). But
be battered by it. “Born to Run” is between it and Egypt? paramedic working 16-hour shifts here, things speak to us.” It depicts their never mind them. The dog tells the
played on the soundtrack to the point Andrew McConnell and Garry Keane’s and the patriarch (three wives, 40 chil- nature-based art, craft and fables. (In story, and for sentimentalists he will be
of meltdown. Gaza tries to make amends; even over- dren) who lives with regular bereave- the story.
The film keeps threatening to tries. So many stories are bundled in, ment bulletins. Some things are so succulently tasty
In the alphabet of demonisation, H for you think they must be bad for you. But
Hamas stands next to I for Israel. Some- not Hitchcock’s thrillers. Like all the
one says: “If we didn’t have Hamas, the master’s greats, Notorious, his 1946 tale
entire Palestinian problem would be of love, spying and murder conspiracy,
solved.” The rocket-holed apartment is a glorious maze of motive and emo-
blocks testify to the plague visited by tion, enriching the mind and imagina-
both houses. One block has been tion. The casting is yummy beyond
impaled by a keeled-over minaret, as if belief: Ingrid Bergman as the good-time
religion itself has been brought tum- girl turned espionage pawn and nearly
bling, Samson-style. The film’s dynamo martyr; Cary Grant as her spymaster
is in its details. The wheelchaired Pales- and lover-for-appearances (and eventu-
tinian rapper; the beach guards taking ally, we’ll be sure, for real); Claude
their serried bow to Mecca; the fishing Rains, dapper and scintillating as a Nazi
boat owner telling us the price for stray- fifth columnist in a South America of
ing beyond the three-mile fishing limit: high-society expats.
gunboats. And — again it’s the detail, It’s completely hypnotic: from the
human and inhuman, that turns the twisting strands of a plot defying us fully
knife of truth — “sometimes they spray to trust anyone, to those Hitchcock spe-
you with sewage.” cials, the shots and scenes where the
Today’s world is full of colonists’ camera too is a lethal conspiracist.
descendants rushing to ex-colonies to Watch the crane shot, slow and swoop-
make amends. Stones Have Laws is a ing, that traverses a room to close in on a
documentary by three Dutchmen set in vital room key half-concealed in a hand.
ex-Dutch Suriname. This bewitching Watch the famous Ingrid-Cary kiss,
movie enacts a handover of history- extended through time and space,
creating power. The directors — Lonnie dragged out teasingly, mischievously
van Brummelen, Siebren de Haan and across rooms and across what seems
Tolin Erwin Alexander — spoke with minutes of screen time.
It was a deal struck to guarantee Bayer’s future but the disastrous $63bn purchase of Monsanto now
threatens it. With its share price halving, some question whether it is time to break up the German group.
By Ralph Atkins
Letters
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
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
HSBC shows the need for when oil and gas prices were higher
than they are now.
Frackers, in fact, have spilled billions
bankruptcy protection, according to
law firm Haynes & Boone,
restructuring nearly $100bn in debt
throughout the world are desperately
seeking to export their product
overseas, primarily to Asia. Part of the
Professor, Bard MBA in Sustainability;
Financial Analyst, IEEFA.org; Partner,
Noosphere Marketing,
succession planning of dollars in red ink. A recent analysis largely through write-offs. glut has been blamed on infrastructure New York, NY, US
Liberalising trade will Bioethanol can fuel shift A levy to lower frequent
Fate of former chief executive provides a cautionary tale for bosses
power Asian economies to a greener economy flyers’ carbon footprint
Succession planning is rarely easy, US, Hong Kong and Asia. With a strong Gideon Rachman observes that Asia’s Professor Bauquis (“BP’s bioethanol Your correspondent, Niall Macdonald
always essential. The abrupt exit of presence in China as well as a London economic miracle depended on peace ambitions are sadly misguided”, (“Radical climate action will curtail
HSBC chief executive John Flint, headquarters, he faced not only a man- and stability (“The Asian strategic Letters, August 5) criticises bioethanol personal mobility”, Letters, August 8)
removed by the board after just 18 agement challenge but a physical one order is dying”, August 6). It also relied for being energy intensive to produce, prompts the observation that air flight
months in the job, shows what happens as well. Reportedly, Mr Flint found the on trade surpluses with the US. The grown on land that might otherwise be taxes should be radically overhauled.
when it goes wrong. The company now travel schedule and working hours American locomotive could pull the used for the production of food and Here’s a way for the UK to lead:
has the opportunity to correct course, punishing. He complained he was hav- Asian train until China hitched its car contributing to deforestation in Brazil. charge individuals at an increasing rate
break with tradition and look for a can- ing trouble sleeping. to it. To sustain prosperity, Asia needs This is incorrect. for each trip in any calendar year taken
didate who can change the bank’s cul- All four of the bank’s major markets to become its own engine of growth. It Bioethanol has full cycle emissions from a UK airport. A modest levy for
ture and articulate a new strategy for face storm clouds. As the biggest retail can do this by liberalising trade. around 70 per cent lower than the first flight would be, say, 5 per cent
the Chinese mainland. bank in Hong Kong it is exposed to the Ratifying the Regional Comprehensive traditional transportation fuels, of the fare. That would ensure social
Mr Flint’s departure on Monday political turmoil raging in the territory; Economic Partnership and eventually including the use of the sugar cane justice. But this percentage would
came after the breakdown of relations its business lines are mature and including China and Korea in the waste to generate biopower — over double for every successive journey.
with the board, dominated by chair unlikely to deliver anything other than Comprehensive and Progressive Trans- two-thirds of which is exported to the Taxpayers would have a duty to
Mark Tucker, a former insurance exec- marginal growth. Its other home mar- Pacific Partnership would multiply Brazilian power grid. declare their flights to HM Revenue &
utive. Mr Flint was the preferred candi- ket, Britain, faces a possible downturn trade in the region. The cane is grown on degraded Customs which would be tasked to
date of the previous chief executive in the event of a disorderly Brexit. The Politicians in Asia should pursue this ‘We stockpiled snacks and ate them’ pasture land that has limited make random checks. Frequent flyers
Stuart Gulliver, who left in 2018 after a US operation, which it acquired in agenda rather than following president alternative agricultural use and is would think carefully about taking
tenure that focused on fixing legacy 2003, has never turned a profit, while Trump into a protectionist morass. located a significant distance from multiple flights.
issues related to the subprime mort- in China itself the bank risks being Willem Thorbecke, discuss and possibly modify the ecologically sensitive areas. Steven Fogel
gage crisis and money-laundering caught in the middle of the trade war. It Senior Fellow, Research Institute of political declaration on the future Furthermore, sugar cane feedstock, London NW11, UK
scandals. Mr Flint, who had spent 32 faces accusations of aiding the US gov- Economy, Trade and Industry, relationship between the EU and the combined with the expertise developed
years at the bank, was a loyal ally of Mr ernment in its investigation of tele- Tokyo, Japan UK. A renegotiated declaration, in the Brazilian industry, delivers German law is not
Gulliver, another “lifer”. coms company Huawei, which is sus- accompanied by a legal codicil higher ethanol yields than any other
Outgoing bosses should ask whether pected of having close links with the Limit the backstop to pertaining to the applicability of the form of biofuels. subordinate to the EU’s
the company needs a radical break Chinese military establishment. provisions in the withdrawal We are proud of our recently While Paul Horne is right in pointing
with the past. So-called insiders with The next chief executive needs vision Northern Ireland alone agreement in regard to the Irish announced plans to form BP Bunge out that, in principle, EU law takes
experience at the company tend to and operational excellence. They must Your editorial (“Britain needs an backstop and conveying the Bioenergia, which will lead to a 50 per precedence over national legislation,
excel at keeping an already thriving either fix the US operations or leave the agenda beyond the Brexit trap”, August commitment of both parties to ensure cent increase in BP’s biofuel even national constitutional law, he is
company ticking over. Outsiders, how- market completely. In Hong Kong, the 6) caused me to re-read the piece in the the Irish border remains open in all production. wrong to state (Letters, August 5):
ever, can bring a new perspective and bank needs a better digital offering. It is Irish Times on July 31 from Professor future circumstances, could make it We believe it is an important step in “even Germany’s basic law”. EU law is
challenge corporate orthodoxy. the dominant retail bank in the former James Anderson of Queen’s University possible for the House of Commons to progressing the decarbonisation of not above Germany’s Basic Law
Mr Gulliver’s departure offered an colony but faces competition from new, in Belfast. The Irish backstop can easily approve the deal by October 31. transportation and is an example of (Grundgesetz).
opening but the recently appointed Mr nimbler online outfits. Whoever takes be resolved by following the guidance And if that happened, Mr Johnson growth in a genuinely low carbon This is a much more complex
Tucker opted for the known quantity over will need to prioritise their rela- of the affected people — those in could go back to the country, and in all business. question which has not been finally
instead. That risk-averse choice has not tionship with the hands-on Mr Tucker Northern Ireland — who voted in June likelihood win a sweeping victory. Mario Lindenhayn settled. Simply put, there is no
paid off: colleagues pay tribute to Mr and form an effective team. 2016 to remain aligned to the EU single Professor David R Cameron Chief executive, BP Biofuels, subordination or superiority between
Flint’s intelligence but say he lacked Critically, however, the next chief market. Is it beyond Westminster to Department of Political Science, Yale São Paulo, Brazil the German constitutional system and
vision. The board complained he was to executive faces two key challenges. correct the strategic error made by Mrs University New Haven, CT, US the EU legal order, which is sui generis.
slow to make decisions. An introvert, First, they must change the culture at May of broadening the backstop to Only navy orders can buoy both bodies of law stand side by side
he found it difficult to get along with the bank, which can be old-fashioned apply to the entire UK? Is the UK ‘just crazy shipbuilding strategy and both (highest) courts co-operate
the forthright Mr Tucker and lacked and comes with a bloated hierarchy. The union of Northern Ireland with on issues of legal and or constitutional
other strong allies within the bank to Second, they must respond to the Great Britain would more likely endure enough’ to do it? The collapse of the Harland and importance, neither claims to be above
speak up on his behalf. changing climate in China, ensuring if the backstop was narrowed to Just as Voltaire’s Candide offers insights Wolff shipyard is the inevitable the other, no cause for concern here.
Many of the problems, however, they have the right people to make the Northern Ireland as originally sought into the value of unfounded optimism, outcome of a toothless and confused Ingeborg Kühling-Garfield
reflect the position he found himself in. most of their status as a bridge between by Dublin and Brussels. so too Mel Brooks’ classic Blazing “shipbuilding strategy” (“Belfast Managing Director, Europa-
Mr Flint had to be an effective captain east and west. Most importantly, the Conor McCoole Saddles illustrates the government’s Shipyard set to file for insolvency”, Wirtschaftsschulen,
not just for a single ship but for an new chief executive will have, at some Singapore tactics in talking up its readiness to August 6). Vienna, Austria
entire fleet spread across Britain, the point, to consider their own successor. leave with no deal (August 1). In the I have pointed out on numerous
Take the Brexit deal film, Sheriff Bart, facing a lynching by occasions in the House of Lords that a How to boost care
the hostile citizens of Rock Ridge, holds shipbuilding strategy needs ship
back to the EU a gun to his own head and threatens to orders. Without them it is as pointless in ageing societies
As the FT says (“The week that kill himself. The townsfolk recoil. as ferry companies without ferries. There are many ingredients in fixing
Johnson’s Brexit plan met reality”, “Hold it men. He’s not bluffing!” shouts For example, the three new Fleet the social care agenda with radical
of pension taper policy may draw the same lesson you drew
from last week’s difficulties: that before
charging ahead with a no-deal Brexit,
smuggles himself to safety. “They are
so dumb!” he says in amazement,
congratulating himself on his unlikely
The desperate shortage of surface
ships in our navy should be addressed
by speeding up the Type 26 frigate
dementia (August 1). Instead, perhaps
the tax system should enable Mr
Prowse, aged 57, to remain in his
he must take the issue back to the escape. build programme and ordering all eight employment and deduct as an expense
Complex arrangement has contributed to staffing crisis in the NHS country. But the question posed is this. Does planned. against his income tax the cost of
But before doing so, he should first the prime minister believe that the The Type 31e frigates need to be employing carers? Better economics
Three years after its introduction by retirement in order to avoid hefty tax take the issue back to the EU. The EU leaders of the EU are as gullible as the ordered as soon as possible. and better for Mr Prowse’s longer-term
then chancellor George Osborne, the bills. In July, NHS Providers, which rep- has made it clear, on many occasions, good people of Rock Ridge? Admiral Lord West of Spithead financial position.
government has announced it will resents English hospitals, said this that while the withdrawal agreement Alec Burnside House of Lords, Michael Wade
review the so-called pension taper would create far longer waiting times can’t be renegotiated, it’s willing to London W1, UK London SW1, UK London SW1, UK
and its impact on the public sector. for treatment — one more burden in a
The decision is a most welcome one. An badly stretched service. They warned
investigation by the Financial Times the government that it only had a mat-
and other media reports have found
that the Byzantine tax arrangement
ter of weeks to act. Judges and other
high-earning public servants have also India’s rich party On a recent summer evening, New
Delhi’s socialites gathered at Bikaner
executive says. Few top industrialists
are willing to express their unease
exacerbate what some call “tax
terrorism” by officials under pressure
was leading to senior doctors avoiding
taking on extra shifts. The impact has
been feeling the pinch.
A generous government pension, under a growing House — the erstwhile pied à terre of
Rajasthani royalty — for a fashion
openly, fearing retribution from a
government that is notoriously
to meet unrealistic targets.
The budget also levied a steep new
not been restricted to the medical pro-
fession, however. Across all industries,
those on higher incomes have found
with no risk of defaulting, was once an
incentive to stay in the public sector.
The introduction of the taper has
cloud of gloom show of Tarun Tahiliani, a feted
Indian designer, whose lavish
bridalwear ranges from $17,000 to
sensitive to criticism.
But Kiran Mazumdar-Shaw,
founder of the Bangalore-based
tax surcharge on the super-rich,
raising the effective tax rate for those
earning more than $285,000 to 39 per
themselves facing nasty surprises. turned it into a liability. This risks driv- $21,000 for a single outfit. biotech company, Biocon, says Mr cent, and nearly 43 per cent for those
The rationale behind the taper was ing talented high-earners to the private Guests were served flutes of pink Modi’s public promises to eliminate earning around $700,000. Nirmala
that much of the £25bn annual net cost sector, where more flexible arrange- champagne sprinkled with jasmine the ills of “crony capitalism” seem to Sitharaman, the finance minister, said
of pensions tax relief goes to top earn- ments are possible. Some employers petals, lychee wantons, pulled pork have left him wary of engagement no more than 5,000 individuals would
ers. To counter this, the taper reduces have reduced pension contributions tacos and tuna squares. They clapped with the corporate world. be affected and that they should be
workers’ tax free annual allowance while increasing salaries, encouraging appreciatively as models strutted past “They want to distance themselves willing to contribute to the nation.
throughout the year as their earnings their workers to invest in ISAs and in glittering saris and full-skirted from crony capitalism, with the result “The signal she sends is that rich
rise. For those on the highest rate, with other measures. Nevertheless, high- lehengas, embellished with elaborate that they don’t talk to business Indians deserve to be penalised,”
a yearly income of more than £110,000, earners in the private sector have also embroidery and Swarovski crystals. people,” she says. “As far as the wrote the columnist Tavleen
the allowance falls to just £10,000. faced problems as a result of the taper. Mr Tahiliani’s outfits are beloved by common man is concerned, every Singh. Ms Singh believes the latest tax
Exceeding these limits can be costly, Annual earnings can vary far more India’s super-wealthy business elites businessperson is a crook and stealing rise will encourage more rich Indians
with some doctors facing marginal tax than in government employment. The who, since the end of socialist taxpayers’ money. That is how to follow in the footsteps of the more
rates of more than 100 per cent. taper cannot account for large bonuses, austerity in the 1990s, have revelled in sentiment is being inflamed.” than 23,000 dollar-millionaires that
The taper has proven to be poor pub- for example, treating them as sudden displays of their riches, boosting an The recent suicide of India’s “coffee Morgan Stanley estimates have left
lic policy. Those with incomes close to salary rises and reducing the annual indigenous luxury industry once king”, VG Siddhartha, was seen by the India since 2014. The new taxes have
the limit, which is based on pension allowance accordingly. believed to be recession proof. business world as symptomatic of a had other unforeseen consequences,
contributions, salary and other factors, Beyond the taper, the UK’s tax sys- Yet as the designer unveiled his wider malaise. “If you look at India hitting foreign portfolio investors, who
have to predict how much they will tem is not a poor one. There are argu- collection, top Indian industrialists, Inc, they are not in an ebullient mood. pulled about $5.5bn from the stock
earn at the beginning of the year to see
if they are within the arbitrary bounda-
ments around the current level of the
current pension savings lifetime allow- New Delhi entrepreneurs and executives were
enveloped in a cloud of gloom,
They are concerned. Alarm bells are
ringing. We need to hear them,” Mrs
markets in July.
As the mood sours, the luxury
ries — creating a tax system which only
really works for clairvoyants. Scrap-
ance, set at £1.055m as of this April.
The general mechanism works well to Notebook worried about the faltering economy
— and the government’s adversarial
Shaw says.
After Mr Modi’s landslide re-
industry is feeling the pinch. Footfalls
in Delhi’s most upmarket shopping
ping the system would both incentivise incentivise worker contributions into attitude towards private enterprise. election victory in May, some Indian mall are said to have fallen 11 per cent
earners to put money into their pen- the pension pot. Tax is deferred until by Amy Kazmin India’s gross domestic product industrialists were cautiously last year, as the rich feared they would
sion savings, and ensure a smoother retirees begin drawing on their pen- growth has slowed for four quarters in optimistic that the prime minister be under surveillance there. Once
running of both public and private pro- sions. Earners on higher incomes will a row and shows little sign of picking would turn his attention to reviving an blistering sales for designer wear have
visions. receive between 40 and 45 per cent tax up. At the same time, Narendra economy showing signs of trouble. tapered off. “The feelgood factor is
The most vocal anger at the effects relief. Modi’s government appears to view That hope was not realised. Instead extremely low — the lowest I’ve seen
of the taper has come from the public Predictability, rather than radical the business community with deep of new stimulus measures or a fresh in decades,” Mr Tahiliani told me after
sector, where the government sets experimentation, should be a central suspicion, if not outright hostility. wave of bold structural reforms, the his show. “There is such unease.
rigid pension contribution levels. The pillar of the tax system. As such, “I’ve been working for 35 years, new government’s first budget in July Nobody is investing. People are just
National Health Service has been par- reversing Mr Osborne’s reforms is a pri- most of it in the financial industry, set an aggressive target of increasing nervous about spending.”
ticularly badly hit, with many consult- ority. This is no time for tinkering. and I’ve never seen so much gloom tax collections by 20 per cent.
ants and GPs choosing to either reduce When it comes to fairer taxation, half- and despair,” one Mumbai-based Businesses fear the ambitious goal will amy.kazmin@ft.com
their working hours or take early measures will not do.
Thursday 8 August 2019 ★ † FINANCIAL TIMES 9
Opinion
A plural society need not be a fractious one Germany should
lead a European
A MER ICA
How the US deals with its diversifica-
tion is of weight to the rest of the west,
Benjamin Franklin abhorred the arrival
of Germans (“Palatine boors”), whom
language and religion rather than of
colour is no great cause for joy. It would
usefulness of such projections struggles
to keep up with their power to unsettle.
naval mission
Janan
Ganesh
because other countries, if not to the
same extent, nor at the same pace, will
follow. It matters, then, if Americans
he contrasted with English descendants
not just in custom but also in “complex-
ion”. It was only over time, often in
certainly not meet the republican ideal
of one’s citizenship being the only iden-
tity that matters. But what it would do is
If a person in 1945 were given sight of
the west in 2019, what would strike
them — the social dislocation brought
in the Gulf
succumb to despondency — to a sense response to yet other immigrant groups, confirm how plastic is our understand- about by racial variety or, actually, how
that turmoil is the way of the future. that these variegated Europeans ing of who belongs and who does not. little of it there has been given the scale
The balance to be struck here is pre- “became” white. Consider how some Demographic projections, in which a of the change?
A
carious. The US has to avoid the com- who now fear for “Judeo-Christian” line marked White and a line marked British readers will be familiar with Constanze
t some stage during this
century, perhaps near its
forting pretence that El Paso was an iso-
lated atrocity. It has to take white
culture once regarded the people Non-White cross over at some point, do
not capture this. The idea of one inter-
the “Enoch was right” line of thought.
Enoch Powell, a Tory minister who
Stelzenmüller
midpoint, white people nationalism more seriously than it has nally coherent group up against some warned in the 1960s against postcolo-
might no longer amount to done. But it has to do so without grant- The US has to take equally monolithic “other” does not nial migration, was not right. Britain
T
an absolute majority of the ing its core pessimism: that a plural soci- describe the history of the US. The ten- became a multiracial society — not with-
US population. Whether or not they ety is by definition a fractious one. To white nationalism more sions of the future are likely to be com- out strife, but certainly without “rivers he great American satirist
should mind, enough do to disturb the
politics of the republic and at times its
the contrary, the transition to “majori-
ty-minority” status need not be such a
seriously but without plex and cross-cutting.
Even the projections themselves rely
of blood”. The same is true in much of
the west. Think of white Australia’s
and mathematician Tom
Lehrer introduced a live
very peace. defining event, nor one attended by ter- granting its core pessimism on a certain crudity. In the Census transformation into what we see in recording of his 1965 song
A feeling of racial dispossession rible social rupture. Bureau data of 2018, it is “non-Hispanic modern Perth or Sydney. “Send the Marines” with
animated at least the fringes of the What it means to be white is liable to described in the first half of that term. whites” who fall below 50 per cent of the The US is different in all sorts of the remark: “It has been a nervous year,
Tea Party movement a decade ago. change. It has changed before. During Just as the definition of a “real” Amer- US population by mid-century. Scholars respects. It has a unique history and and people have begun to feel like a
There is no accounting for the political and immediately after the mass migra- ican widened from those of English worry about the difficulty of categoris- offers unique ease of access to the means Christian Scientist with appendicitis.”
rise of President Donald Trump without tions from Catholic and Orthodox descent to those of European descent, ing a person who has one white and one of violence. But its challenge is one that The same could be said of policymakers
some reference to the same anxieties. Europe in the 19th century, the Irish, it has the potential to widen again. The Hispanic parent, to say nothing of other other open democracies will face in in Berlin in 2019, who are staring at an
From what we know, and with due Italians and Slavs were held by nativists new test of whether someone is In or Out permutations. Compare George P Bush, their own ways. It must resist racial exceedingly unpleasant dilemma. It is to
caution in asserting cause and effect, to be so alien as to constitute a separate might be whether they speak English nephew of a president, son of a Mexican- pessimism while raising its vigilance to no small degree of their own making.
the “replacement” of his race aggrieved ethnic, if not racial, group. as a first language, or identify with American mother, with a non-English- those who strive to vindicate it. A nasty spat has erupted over Ger-
the man who murdered 22 people As far back as 1751, in his Observations some kind of Christian denomination. speaking new arrival from, say, Russia. many’s refusal to join a US-led naval
in El Paso, Texas, on Saturday. Concerning the Increase of Mankind, That people fracture along the lines of Who is “white” here? At some point, the janan.ganesh@ft.com mission to protect the Strait of Hormuz,
one of the world’s most important oil
trading waterways. Is Germany being
prudent — or is it an unreliable ally?
Despite their attempts to salvage the
Music is more
Iran nuclear deal of 2015, from which
President Donald Trump unilaterally
withdrew the US last year, German dip-
lomats are fully aware of Iran’s nefarious
role in destabilising the Middle East and
supporting Islamist terrorism.
of its parts
sian Gulf to the Gulf of Oman and Ara-
bian Sea. As a result, the oil price is spik-
ing; so are insurance premiums. Iran is
clearly attempting to multilateralise its
conflict with the US, pulling in Europe.
The Trump administration’s whip-
sawing policies have stoked tensions
in the Gulf: first the withdrawal from
ment lawyers on even tiny snatches of the deal, then a policy of “maximum
BUSINESS melody or beats in hit songs, with writ- pressure” with crippling sanctions and
ers trying to nab a share of what they demands amounting to terms of surren-
John inspired more profitably in others.
Gapper If that were how classical music
worked, Dvorak would have been in
trouble for so admiring Wagner that he
Showing Iran that Europe’s
followed the “great little man” around ‘good cops’ have red lines
T
he musical magpie is under
Prague in 1863 and wrote works influ-
enced by him and other composers.
too could have a real
threat. Legal judgments in Richard Strauss might also have heard deterrent effect
both the US and Europe last from Verdi’s estate for throwing a per- Efi Chalikopoulou
week have made it harder fect pastiche of an Italian tenor aria into a singer who employs (or is employed Lines”, which a US appeals court agreed These are creative works that, even if der. Threats of military action alternate
for songwriters and produc- Der Rosenkavalier. by) Mr Martin or Lukasz Gottwald, the last year had taken its feel (although dif- they borrowed aspects from others, with offers of talks, yet there is no sign of
ers to adopt samples, tunes or even In some ways, courts are responding US co-producer and co-writer of “Dark fering in melody, harmony and rhythm) turned them into something quite new. a plan for diplomacy. In June, Mr Trump
moods from other people’s music in cre- to the way that many pop hits are now Horse” also known as Dr Luke, is not from Marvin Gaye’s 1977 “Got To Give Only looked at narrowly, broken into lit- ordered air strikes and then immedi-
ating their own. created, with teams of writers and pro- seeking pure originality. it Up”. The Gaye family was awarded tle pieces, did they copy. ately reversed. No wonder the Iranians
Katy Perry and her team of songwrit- ducers taking components of melody, But it also means that such songs can $5m and half of future royalties. A striking aspect of these cases is that are unimpressed and the Germans fear
ers were ordered by a US jury to pay harmony and hooks and assembling be reverse engineered into their compo- This is a terrible precedent that no one claims that the first work’s popu- being dragged into a shooting war.
$2.8m in damages for copying part of an them into products for singers including nents, and each compared with all that allowed the family, as Judge Jacqueline larity suffered as a result of the second. American efforts to shame Germany
11-year-old Christian rap song in her Ms Perry. The modern incarnation of went before. So it proved with “Dark Nguyen wrote in her dissenting opinion, Indeed, a recent study of US charts into joining the mission in the Gulf
2013 hit “Dark Horse”. Meanwhile, the Tin Pan Alley was pioneered by the Horse”, which is little like “Joyful Noise”, “to accomplish what no one has before: found that sales of sampled works haven’t exactly helped. When the par-
pioneering German electronic band Swedish musician Max Martin, who co- the song on which it infringed, except copyright a musical style”. One profes- tended to rise, especially if the originals liamentary ombudsman for the German
Kraftwerk won a long-running case in produced and co-wrote “Dark Horse”. for one element — an eight note ostinato sor observed that “if you’re not influ- were old and from a different genre. The armed forces said the German navy
the European Court of Justice over the The assembly method of songwriting beat. This led the jury to hand the writ- enced by Marvin Gaye, there must be impact of sampling or the magpie use of might not have enough available ships,
sampling of a two-second rhythm from has some similarities to sampling, ers of “Joyful Noise” 22.5 per cent of the something wrong with you”, and that beats and hooks is unlike that of whole- the US Embassy in Berlin wrote on Twit-
their 1977 track “Metall auf Metall”. which literally involves copying parts. “Dark Horse” profits. there is nothing wrong in learning from sale file-sharing. ter: “Suggestion: the largest economy
The balance of freedom of artistic The ECJ ruled in the Kraftwerk case that The most egregious example of a song genius and building on it. All of this suggests that courts should in Europe could buy more ships?” Other
expression versus copyright protection permission is required for any sample, getting into expensive trouble over a At a minimum, the writers are being take a broader view of music copyright European countries have navies too,
has swung heavily to the latter, after the although it does not count as a repro- single element was Robin Thicke and overcharged for their debts to history. than they recently have. The fair use yet it is only Germany that is being
free-for-all era of musical copying and duction if it is modified so much that Pharrell Williams’ 2013 hit “Blurred Half of the “Blurred Lines” royalties is exemption for works that are trans- singled out.
sampling in the early 2000s. The old it is unrecognisable. This fits with a absurdly inflated and even a 22.5 per formative needs to be applied more gen- So now even the staunchest transat-
philosophy was that creative property is US ruling in 2016 on a horn fragment cent levy on “Dark Horse” for one ele- erously if the entertainment industry is lanticists in Berlin are resolutely deaf to
theft; today’s is that composers control
each note they write.
in Madonna’s 1990 song “Vogue”.
No one should be surprised that a lot
The assembly method of ment defies common sense — at such
valuations, the songs are worth less than
not to become a vast tournament of tiny
infringement claims. When lawyers are
the call from Washington. Foreign min-
ister Heiko Maas says Germany will
Singers and writers deserve protec- of hits constructed in this manner songwriting has similarities the sum of their parts. becoming more creative than writers, seek to rope in other European states
tion but the trajectory of legal cases,
particularly in the US, is worrying. It is
sound rather similar. Like any company
that calls in a management consultancy
to sampling, which literally The broader principle is that, taken as
a whole, both are substantially different
something is going wrong. (notably France) for an EU observer
mission that would collect information
turning into open season for entertain- to mimic what it has done for others, involves copying sections from the songs of which they fell foul. john.gapper@ft.com about attacks, but not be able to escort
ships or protect them militarily.
A toothless naval mission would be a
terrible idea. At stake for Germany is its
own national interest, and the respect
Johnson has set himself a trap on the Irish border and solidarity of its neighbours. Ger-
many relies less than France or the UK
on the shipping route through the Strait,
because it gets its own energy imports
mostly from Russia and Norway. Yet, as
before entering negotiations. The 1994 similar trap, even if with a very different the Good Friday Agreement. Putting depends on political leaders respecting the world’s third largest exporting
Jonathan IRA ceasefire was not “permanent”, as sort of negotiating partner. There is no cameras and gates at or near the border unwritten rules. If the Tory radicals rip nation and one of the most globalised
Powell the government had hoped, and the
British did not want to find themselves
chance of the EU dropping the backstop
as a precondition for meeting him, even
makes that worse. The installations will
become targets for attack by dissident
up the conventions, so can the opposi-
tion. The clear view of the civil service,
economies, it needs unhindered access
to international shipping lanes. Berlin
negotiating in the face of the threat of if they were prepared to discuss it face republicans. We will be back where we as I understand it, is that a caretaker might also want to call on its neighbours
renewed violence. They therefore to face. And, as long as the British started. government, having been defeated in a for help in the future; a German and a
T
demanded that the IRA decommission government does not put forward a But perhaps Mr Johnson’s aim is not to confidence vote in parliament and hold- Norwegian tanker were shot at off the
heresa May made a classic all its weapons before republicans could convincing alternative to deal with the get into a negotiation at all, even though ing an election, is not permitted to Iranian coast in June.
negotiating mistake by join the negotiations. They were threat posed to the Good Friday Agree- he assures us there is only a one in a mil- undertake controversial political acts Germany’s posturing as a self-right-
engaging in Brexit talks refused. The government revised the ment by Britain leaving the single mar- lion chance of a no-deal Brexit. Perhaps during that period. If Mr Johnson were eous pacifist is unconvincing. It has
with the EU before agreeing demand down to the majority of its ket and the customs union and thereby he is trying to set up a situation where he to press ahead, he would be plunging the been participating in the robust EU
a position with her own weapons, but again they were snubbed. can blame the EU for refusing to negoti- country into a constitutional crisis. naval antipiracy mission, Atalanta, off
side. Her successor as UK prime minis- Patrick Mayhew, the Northern Ire- ate on the backstop, and a Remainer Nor would that be the only crisis. Mr the Horn of Africa for years. The Iranian
ter, Boris Johnson, is now making the
opposite mistake by refusing to talk to
land secretary, made a speech in which
he reduced the demand to “the actual
There is no chance majority in the House of Commons for
trying to block him from leaving the EU
Johnson’s Europe adviser went to Brus-
sels last week to ask when negotiations
navy is a tougher adversary than Somali
pirates. But a European show of calm
the Europeans until they concede on his decommissioning of some arms”, which of the EU dropping the without a deal, and then call an election. on a new relationship could start again determination, co-ordinated with the
major demand — dropping the North-
ern Ireland “backstop” to prevent a
became known as “Washington Three”,
the third condition for Sinn Féin’s par-
backstop as a condition Mr Johnson’s most influential adviser
and the man who led the Leave cam-
after a no-deal Brexit. The answer: if the
UK has crashed out and failed to pay its
US-led effort, to prevent Tehran from
playing one against the other could have
hard border in Ireland. He is likely to ticipation. This too was rejected and in for meeting him paign, Dominic Cummings, appears to dues, it could be a very long time indeed. a real deterrent effect.
incur a similarly disastrous outcome. 1996 the IRA returned to violence. have given the game away. He says the The country could be in purgatory for as It would show Iran that Europe’s
Setting preconditions to a negotiation The issue of the decommissioning of recreating a hard border, the EU cannot prime minister could call an election long as a decade with no new relation- “good cops” have red lines too. That, in
in this way is almost always an error. Mr weapons continued to dog the talks for back down. before October 31 but hold it after that ship with the EU, having to kowtow to turn, might make offers of diplomatic
Johnson will either face a humiliating more than a decade but, in the end, the The Brexiter refrain of “technology” date, while in the meantime doing noth- President Donald Trump’s terms for an de-escalation more effective than they
climbdown or the prospect of no negoti- British government had to accept, on does not address the question, let alone ing to stop the UK leaving the EU on unfavourable trade deal with the US. are now. And it would bolster Europe’s
ations taking place at all before the the basis of a formula proposed by US answer it. It is true that when, and if, the Halloween. That would be to tear up What starts as a negotiating mis-step credibility in the attempt to stand up to
deadline of October 31. senator George Mitchell, that Sinn Féin technology is invented, it could speed constitutional convention. could result in a crisis on a scale we have the Trump administration’s bullying.
He should learn from the experience could have a seat at the table without the passage of a lorry across the border, The response from the Brexiters is not faced for 80 years. That is the prudent course of action.
of his predecessor John Major, who giving up a single weapon. The alter- but that is not the problem. The prob- that convention doesn’t matter. But that
was forced to drop his demand that native was no peace negotiations. lem is that a hard border again raises the works both ways. The UK does not have The writer was chief British negotiator on The writer is the Robert Bosch Senior
the IRA decommission its weapons Mr Johnson has set himself a issue of identity which was resolved by a written constitution, but our system Northern Ireland 1997-2007 Fellow at the Brookings Institution
10 ★ FINANCIAL TIMES Thursday 8 August 2019
Twitter: @FTLex Glencore’s African copper mines are the problem Glencore has not been able
Mine costs (cents per lb) to reduce fatalities
All mines Number of fatalities at Glencore’s
Excluding Africa managed operations
Block’s claim it is “an accounting 15
Burford/Muddy Waters: fiasco”. A more detailed riposte is
The New York Times:
158 156 10
court short needed. Investors in other litigation headline risk
funds should ask whether they face a
5
Muddy Waters’ attack on Burford hit as bad as the one just taken by The New York Times relies on the trust
Capital may rank as the most Mr Woodford. 125 of its readers. That has taken a minor
0
devastating so far by a short seller 2015 2016 2017 2018 2019 hit. Some subscribers objected to the
against a large UK-listed company. 104 (H1) headline “Trump Urges Unity Vs
Shares in the litigation funder had Glencore versus the sector Racism” following mass shootings.
collapsed about 50 per cent yesterday.
Cryptocurrencies/SEC: % FTSE All World Mining Index They said the famous US newspaper
101 30
That left Neil Woodford, the fund Kik-start 20 had been too soft on a president with a
manager with the reverse Midas touch, 10 coarse line of rhetoric on race.
nursing a £119m loss he could not Are digital coins such as Facebook’s 80 In the past two years, shares of the
72 0
afford. Former protégé Mark Barnett at Libra securities that should be subject New York Times Company have
-10
Invesco took a £237m hit, according to to Washington’s supervision or doubled as investors backed the
-20
S&P data. currencies that should be left alone? 2018 2019 2019 (H1) 2019 Glencore expensive transformation of the
Muddy Waters — as US hedgie The Canadian messaging app Kik -30 publication into a digital media
(guide) (revised) 2017 2018 2019
Carson Block is known — is not the first wants to drag the question into the FT graphic Sources: Glencore, Bloomberg powerhouse. That article of faith took a
to flourish a red flag over Burford’s open via its token. It may illuminate hit yesterday when the stock dropped
aggressive accounting. Lex and broker the US regulator’s position but it is Societies typically progress from Mr Freyberg was promoted to give third. Most of the 11 deaths occurred more than a tenth. The group reported
Canaccord have separately pointed out unlikely to be popular. feudalism, where a king rules mining proper managerial oversight. at Mopani, a deep underground mine a second-quarter revenue increase of
that soaring paper profits were riskily Kik has the sort of fraught through powerful barons, to That may comfort some shareholders. in Zambia. 5 per cent year on year. Direct
dependent on Burford’s upward relationship with regulators that centralised government. Swiss Others will ask why problems persisted If high returns were a main reason production costs have jumped by more
revaluation of ongoing legal cases. It Facebook executives are desperate to commodities group Glencore is so long. US authorities are probing to mine in Zambia and the than twice that.
was Mr Block’s formidable reputation avoid, but it has far less to lose. The US halfway there. Peter Freyberg, Glencore’s alleged connections with Democratic Republic of Congo, it has The number that the New York
and the thoroughness of his critique Securities and Exchange Commission newish head of the industrial corruption in Africa and Latin not worked. Mutanda, a cobalt mine Times Company would like
that pulled the rug on a business once sued Kik for conducting a $100m division, popped up on a half-year America. The group has meanwhile in the lawless DRC, will be suspended shareholders to focus on is digital-only
valued at more than £4bn. initial coin offering in 2017 without earnings call to defend mining reported a worrying number of partly due to low prices. subscriptions. These now total nearly
The share slump lends weight to the registering with the regulator, declaring practices. Copper boss Telis workplace fatalities, 11 in six months. A boost to the output of copper and 4m and are a third higher than a year
theory that a speculative bubble had that the tokens were marketed as an Mistakidis retired in December. According to Reuters, 43 illegal miners nickel in the second half might well ago. Digital subscription revenue in
inflated, and may now be popping, in investment opportunity and were In-house oil baron Alex Beard went unaffiliated with Glencore also died at salvage full-year results. Analyst that timeframe is, however, up by only
the UK and US litigation businesses. securities. Kik’s response, published in June. one of its facilities in June. estimates of over $5bn of annual free 14 per cent. Digital advertising, while
Investors fleeing depressed bond and yesterday, rejects this. Its founder and The old king — chief executive and It is important for the industrial cash flow in years to come should growing, remains modest.
share yields have been pumping cash boss Ted Livingston has claimed he is 9 per cent shareholder Ivan division to behave well and perform more than cover the dividend. But What spooked shareholders the most
into alternative assets. Litigation funds excited to take on the SEC in court. Glasenberg — still occupies his well. It accounts for 80 per cent of with Glencore still dependent on coal yesterday was an admission that third-
have been a hot new theme. In the early 2010s Kik was seen as throne. But he is becoming less earnings. earnings, and a US investigation quarter ad revenue growth will turn
The big risk is that weight of money one of the cooler ways for teenagers to reliant on the dwindling band of A host of operational issues at its pending, pressure remains on sharply negative.
will force fund managers to invest in find their friends. Then Facebook billionaire commodity traders he led African copper mines got the blame for longstanding bosses, including Mr Weak advertising has killed off many
cases that are hard to win. The bought the rival messaging service through a 2011 initial public offering. first-half ebitda dropping almost a Glasenberg, to retire. well-known titles in recent years. The
problem was illustrated by a disastrous WhatsApp and the app’s growth bulwark for the likes of the New York
foray into industrial injury cases by withered and losses rose. In 2017 Kik Times has been digital subscription
Quindell, another star of the Aim raised$100m through the sale of digital revenue. Growth has been driven by
market, whose stock collapsed in 2015. tokens called kin, just as ICOs hit their Facebook is likely to prefer quiet talks European banks was that profitability Dutch and German home loans tend to promotional activity.
Burford is a much fancier operation peak. Kik said it imagined kin would be to a brawl. For crypto advocates, Kik’s would rebound. Lower interest rates have fixed rates, so the agony is drawn The game is to retain new
than Quindell — it is, for example, incorporated into the messaging app battle could be counterproductive. and burdensome regulation had put out. But lower rates erode margins on subscribers on full-freight terms but
chaired by former Barclays boss Peter and used to make purchases and that them at a disadvantage to US rivals. their client deposits. Ordinary clients also to achieve mass franchise scale in
Middleton and audited by EY. Its its value would rise as it was used. European banks trade at fractions of cannot be charged negative rates, so other areas too, such as events. In this
accounting methods appear perfectly Ten years after bitcoin arrived, the European banks: their tangible book value. are in effect subsidised. way, fixed costs are distributed across a
permissible. But Burford’s numbers SEC’s approach to cryptocurrencies is Commerzbank is at only a third. But Whatever the mechanics, wide base.
should make investors feel queasy for hazy. Some worry the US will lose its the low down optimists believed higher rates would profitability will fall. ABN Amro still The New York Times wants to reach
the same reason Quindell’s did. Profits place as the centre of finance if it takes boost margins on lending and deposit managed 13.6 per cent returns on 10m subscribers by 2025. It currently
rose 41 per cent to $231.4m in the first a hard line against innovation, others “Lower for longer” sums up the taking. Commerzbank’s presentation equity. Beating 10 per cent is tougher. has 4.7m. That goal is still reasonable.
half. But $33m flowed out of the that it will allow scams to flourish. interest rate outlook for Europe’s helpfully included a chart showing the Consolidation would be an escape However, the profitability of the
business. Burford has not produced Complicating matters, the definition of struggling economy. The buzzwords impact of rates rising a percentage route. Commerzbank’s talks with underlying business may be shakier
positive operational cash flow since a security rests on a 1946 case linked to also capture prospects for European point (net interest income up €500m, Deutsche Bank collapsed in April. But than expected. Investors who pay
2013, according to S&P data. oranges. Chairman Jay Clayton said last bank shares. Second-quarter results or a 10th, in the first year). How quaint. depressed share prices make 20 times forward ebitda are showing
The company has made up for this year that all ICOs he had seen were from Italy’s UniCredit, Germany’s Banks’ finance directors rush to shareholders warier and increase the greater trust in the newspaper than
by borrowing. Net debts stood at securities yet enforcement action has Commerzbank and ABN Amro in the explain they long knew borrowing costs cost of raising capital for acquisitions. some readers currently have.
$400m at the last record date. That been taken against relatively few. Netherlands revealed scars from loose would head in the opposite direction. In banking’s version of Darwinism,
would be a lot more comfortable if A court may come up with a eurozone monetary policy. European Effects vary by bank and by how well stronger banks will pick off weaker
forecast 2019 ebitda of $352m did not definition of tokens that clarifies which bank stocks, already a third lower than finance directors hedged. Mortgages rivals. Shareholders hoping for a Lex on the web
For notes on today’s breaking
assume a big slug of paper profits. are considered securities. But it is clear a year earlier, lurched down again. are on flexible rates in southern bounceback should lower their stories go to www.ft.com/lex
Burford has briefly rebutted Mr the SEC is still deciding its position. Earlier this year, the case for buying Europe, inflicting pain on banks faster. expectations for longer.
CROSSWORD ACROSS
1 Switches bottle, needing no
4 Duck slime? Smoother! (9)
5 Help in mass, for example (7)
No. 16,240 Set by ORENSE answer in case of shingles (8) 6 Reject incentive, and without
6 Son has no trousers (6) cover (5)
9 Student coming in almost last, 7 Amazed when lorry gets both
drunk (6) of us on board (9)
10 Rent during course is a risky 8 Equipment best uncovered for
game (8) so-called planes (5)
11 Planning a near orbit must be 14 Gamble supporting company
an anomaly (10) fight showing lack of courage
12 Put back time trial (4) (9)
13 Off colour initially in fixing 16 Customs may see a bit of
drain (6) drama cutting costs (9)
15 Illustrates old stamps (8) 17 Mad English composer touring
18 Cooks must cross a road for carnival venue (9)
high-flying workers (8) 19 Person who looks small –
20 Talk a little about a remedy tinker? (7)
for acid (6) 22 Subject of note crossing
21 Lead shot originally used with border (5)
pitch (4) 23 What’s left of building after
23 Such vehicles bear the marks the end of this inferno? (5)
of battle (6,4) 24 Antique copper ring in Orkney,
25 Architectural feature may be originally (5)
obstacle having ignored first
two letters (8) Solution 16,239
26 Taxi working to load right & $ 0 3 , 1 * % , & < & / (
element (6) 2 $ &
: , 7 + (
8 ,
, / / 5
/ 5 ;
( 3 8 7 (
27 Withdraw toll applied to % 5 ' ' * 2 , &
soldiers (6) 2 5 2 < $ ) ( 9 ( 5 ( 6 $ 8
< 1 1 . 6 , 7
JOTTER PAD 28 Reaction of revolutionary & 2 1 9 ( 1 , ( 1 & (
press on right of choice (8) 6 $ , $ ( ' * 6
( 0 0 $ 1 1 8 ( / / (
5 % * * * $ %
DOWN * , 5 / 7 + ( + 2 / < 6 ( (
2 B-lister’s harangue at person ( 2 $ 7 ( $ 7 +
$ 6 6 ( 5 7 , 2 1 1 8 5 6 (
performing priestly duties? (9) 1 , & ( 5 & , $
3 Express’s topless spread (5) 7 ( $ & + ( 5 < , ( / ' ( '
Thursday 8 August 2019 ★ 11
Red line Glencore hands mining veteran Stockholm syndrome Can Klarna avoid
challenge of reviving fortunes — ANALYSIS, PAGE 14 falling captive to Big Tech? — INSIDE EUROPE, PAGE 12
COMPANIES
INSIDE BUSINESS
Financial services
EUROPE
A
seller Muddy Waters took aim at a huge, but rare, successes, rather than ate commentary and market manipula- and what analysts have noted that much of its rev-
favourite of London’s stock market. consistently producing solid returns,” tion,” the company said. the market enue comes from writing up the value of lmost nobody makes unicorns quite like Swe-
The US hedge fund, headed by Carson Mr Block said. “It’s rare for us to come Until this week, Burford’s market court cases that have not finished. den. Spotify, Mojang, King, iZettle — all are
Block, described Burford as a “poor across such a dichotomy between what value was more than £3bn, making it sees’ “We think accounting standards were examples of billion-dollar companies born in
business masquerading as a great one” we see and what the market sees.” the largest stock listed on Aim, the Lon- abused,” Mr Block told the FT. “We defi- Sweden that have made Stockholm the
in a report that sent shares in the com- Burford said in a statement that it don Stock Exchange’s market for nitely think the authorities should look world’s biggest unicorn factory per capita
pany crashing 46 per cent. employed IFRS accounting standards smaller growth companies. It has also at this. I believe it comes close to the line behind Silicon Valley. But, today all four are largely con-
Burford, which counts troubled and cited years of “clean” audit opinions been one of Aim’s strongest performers, and possibly crosses it.” trolled from outside the Nordic country. Spotify’s main
stockpicker Neil Woodford among its from EY. The company also said that it with its share price having previously Woodford Investment Management centre of gravity is in New York, while the makers of games
largest shareholders, makes money by reported on its investments in “extraor- surged more than 1,000 per cent over and EY declined to comment. Minecraft and Candy Crush as well as payments company
funding lawsuits and then taking a share dinary detail”. the past five years. See Lex iZettle were sold off to deep-pocketed US companies:
Microsoft, Activision Blizzard and PayPal respectively.
Enter Klarna. The buy-now, pay-later start-up founded
in Stockholm became Europe’s largest unlisted fintech this
week, valued at $5.5bn — more than double its estimated
Media. Consolidation worth at the start of this year.
The path Klarna and its 37-year-old chief executive and
CBS-Viacom talks point to wave of mergers co-founder Sebastian Siemiatkowski now take is doubly
interesting. Firstly, it has the chance to be one of the main
global players seeking to disrupt the traditional retail
banking industry. The $460m it raised this week from ven-
ture capitalists, an Australian bank and pension funds will
be used to speed up its longstanding attempts to crack the
Rise of Netflix, Disney-Fox US market, where after some years of struggling it is finally
and AT&T-Warner megadeals showing signs of success.
The second aspect may be even more crucial for Sweden
leaves rivals racing for scale and Europe: can they hold on to their leading technology
groups or simply watch them get swallowed up by US or
ANNA NICOLAOU — NEW YORK Asian rivals? Mr Siemiatkowski is certainly aware of the
issue. The decision of iZettle a year ago to pull its planned
When Sumner Redstone decided to split stock market listing and instead agree to be bought for
Viacom and CBS in 2006, Netflix was a $2.2bn by PayPal reignited anxiety around promising
DVD-by-mail business. Now the sister European tech companies often selling out rather than
companies are dwarfed by the $135bn taking the longer and tougher route of trying to rival some
streaming group, and are looking to of the biggest US groups.
reunite to better compete in an industry The spotlight is on what Klarna plans to do next. Mr
it has upended. Siemiatkowski says the company — founded by him and
US media and telecoms groups have two friends at business school in 2005 — is as close as it has
hurtled towards consolidation in recent ever been to an initial public offering today, but that for
years, with the biggest players huddling now pursuing growth is the priority.
together to defend against Netflix. Asked about iZettle and the temptations to sell out, he
Rupert Murdoch cashed out, selling his replied: “We are very humbled to be in this city that has
treasured television and film studios to given rise to companies like
Disney for $71bn, while America’s big- Spotify and King and others.
gest phone company paid $80bn to buy The most important thing is,
‘There is this
Time Warner’s Hollywood empire. as Ingvar Kamprad [the massive industry
In the dust of these megadeals other founder of Ikea], said: most
media groups look like minnows, and things are still not done.
— retail banking
analysts and executives are forecasting There is this massive indus- — that hasn’t put
a second wave of consolidation. try — retail banking — that
Mr Redstone, 96, has passed control hasn’t put customers first.
customers first’
of the family business to his daughter This is almost an unlimited
Shari, who is driving for scale. Her first addressable market.”
goal is the reunification of CBS and A person close to some of Klarna’s backers said: “It’s
Viacom, bringing together programmes down to the founder’s mentality. Does Sebastian have the
such as 60 Minutes, Stephen Colbert’s Late appetite to do another 10 years? And I think he does.”
Show and The Big Bang Theory with a Klarna still has plenty of challenges. Unlike many fin-
portfolio of cable channels and the Para- A CBS-Viacom Warner Bros has been swallowed up block. Sony Pictures Entertainment, the past year to fall below $3bn, and has techs, it is profitable and has been for some time. But last
mount Pictures Hollywood studio. tie-up offers to by AT&T, while Comcast owns Univer- studio behind shows such as Breaking held talks to sell its Starz cable channel year its operating profit dropped 70 per cent to $19m on
The companies’ boards have been in bring together sal Pictures. Viacom’s Paramount, Sony Bad, has long been viewed as a target, to CBS, according to multiple reports. revenues up a third to $627m.
talks for weeks, having hoped to iron out shows such as and Lions Gate, the remaining studios, but its parent in Japan has resisted it. Discovery, the $15bn company behind Klarna earns money from online stores such as Asos,
a deal today, when they report quarterly ‘The Big Bang “are barely surviving”, said Jeffrey Bock, “Who is left? Sony does not seem like the documentary cable channel, as well Hennes & Mauritz and Adidas, as well as consumers, by
results. But while they have agreed to Theory’, analyst at Exhibitor Relations, the it wants to sell, which leaves very few as TLC and the Food Network, this year offering a deceptively simple solution that it claims boosts
make Bob Bakish, the Viacom veteran, pictured, and entertainment research group. options,” said an adviser to companies responded to rumours with a statement sales substantially as fewer shoppers abandon their bas-
chief executive of the combined com- ‘60 Minutes’ Mr Swinburne is among observers including Disney and Fox. The adviser that it was not for sale. kets over difficulties paying. In return for a fee from mer-
pany, say people familiar with the situa- Sonja Flemming/CBS/Getty
who believe further M&A activity is listed Discovery Communications, Even if there are deals between sec- chants, it offers the customers the chance to buy now and
tion, they have yet to agree on a price. inevitable. “This business is getting Lions Gate and Imagination Entertain- ond-tier groups, competing with the pay later, while assuming their credit risk and the burden
One person close to the boards said harder, requiring more capital, more ment as potential targets but warned leaders will be tough. A combination of of collecting the money from the seller. The service is free
there were many reasons to pursue a global distribution and ultimately more that “cable cowboy” John Malone’s CBS, with a market value of $19bn, and for most customers but if they pay late or decide to pay in
deal. “In an environment where Disney consolidation,” he said. “We think the stakes in Lions Gate and Discovery Viacom at $12bn would still be small instalments, Klarna collects the interest.
is putting stuff behind the walled gar- race for scale will lead to lower near- could complicate any approach. compared with Netflix and Disney, That has put it in the sights of the Swedish government
den, WarnerMedia is putting stuff term profits, and we continue to see only Lions Gate, the studio behind the The worth $135bn and $250bn respectively. and some debt counsellors, who worry about whether and
behind the walled garden . . . the com- a handful of platforms emerging on the Hunger Games and Mad Men, has had a Disney, AT&T, Apple and NBCUniver- how it aids young and vulnerable people in getting into
bined company would be pretty well other side.” tough run. It has struggled to produce sal are preparing to release streaming debt. Mr Siemiatkowski said Klarna was keen to stay
positioned.” The question now is who is on the big hits, lost half its market value in the services to make a success of the assets “humble and transparent” as well as learn from its mis-
Ms Redstone has hinted that the they have bought. Lions Gate is trying to takes but that its basic aim was merely to make online
Viacom-CBS tie-up may be only the Disney dominates the film industry follow suit through the expansion to shopping as easy as buying in a shop. He highlighted how
start. “We would probably want to look more countries of Starz Play, a stream- Klarna had become one of the 10 companies Swedes
Studio market share, years to Aug (%)
at something after that and to develop ing service tied to the cable channel. trusted the most, scoring better than any bank.
scale and be transformative as we move Paramount Fox Jon Feltheimer, chief executive, Mr Siemiatkowski argued that now was the time for “a
forward,” she said in June. Sony/Columbia Universal 100 hailed an “investment into our future” huge disruption” of the retail banking and payment card
The likes of Viacom and CBS face a Warner Bros Disney* but Wall Street showed less enthusiasm. industry by putting customers first. An IPO seems to be
Hollywood landscape dominated by a 80 Lions Gate shares have fallen more than the next logical step, with Klarna’s founder saying it had
few large companies. Disney makes up 20 per cent since the announcement. “most of the things in place that we need”, even if this
38 per cent of the US box office take, 60 Todd Juenger, media analyst at Bern- week’s fundraising showed it could access large sums of
according to BoxofficeMojo, which stein, predicts that the “table stakes of money away from public markets.
tracks the film industry. Adding in Fox, 40 content spend to attract and retain sub- Whatever it does next will be closely scrutinised at home
the number rises to almost 42 per cent. scribers . . . will overwhelm niche serv- and abroad. Only a handful of Sweden’s 100 largest compa-
Ben Swinburne, head of media 20 ices like Starz”. nies were started in the past 50 years, an extraordinary sit-
research at Morgan Stanley, estimates “Lions Gate is mimicking the Disney uation mirrored across much of Europe. The continent’s
that Disney, after the Fox acquisition, 0 playbook,” he said. “But not everyone is future vitality may depend on how many Klarnas it can
will produce about 30 per cent of all 2008 09 10 11 12 13 14 15 16 17 18 19 Disney.” develop and cling on to.
primetime scripted broadcast TV series * Buena Vista subsidiary
Source: Box Office Mojo
this season. Additional reporting by Eric Platt richard.milne@ft.com
Automobiles Pharmaceuticals
Continental flicks switch to electric vehicles Opioid litigation fears drag down Teva shares
MYLES MCCORMICK — LONDON “The current market environment is consumers less willing to buy new cars. HANNAH KUCHLER — NEW YORK lawsuits aimed at opioid makers and inflating prices on more than 110
highly challenging. The key automotive Vehicle production is set to fall 10 per distributors were “political” rather than generic drugs.
Continental, the German auto parts Teva’s better than expected earnings
markets of Europe, North America and cent in China, 3 per cent in Europe and a “classical legal situation”. Teva, which has denied wrongdoing
group, is pivoting towards electric vehi- failed to allay investor concerns about
particularly China are declining,” said 2 per cent in the US compared with last He told the Financial Times: “Pre- in both cases, said it expected the cost of
cles as it looks to position itself for potential legal liabilities and the depar-
Elmar Degenhart, chief executive. “We year. scription drug misuse has existed for a refinancing its debt to go up because of a
rapid growth in cleaner transportation. ture of the chief financial officer, send-
are responding to the declining market Arndt Ellinghorst, an analyst at Ever- hundred of years but now they have lower credit rating, partly because of the
ing shares in the Israeli pharmaceutical
Europe’s largest listed auto technology by ensuring rigorous cost discipline and core ISI, said Continental may be “late to made a claim that it was created by the pending litigation.
company down more than 5 per cent.
supplier said yesterday it would stop enhancing our competitiveness.” the party” on electrification. One inves- manufacturers.” On the earnings call, Mr Schultz said
investing in making injectors and Continental last month slashed its tor, he said, “had to triple-check the The drugmaker put aside $646m for Shares in Teva have fallen 77 per cent the company had decided to settle in
pumps for petrol and diesel engines full-year forecast as automotive produc- date of the press release to make sure it liabilities related to litigation over the in the past year as Mr Schultz tries to Oklahoma despite being responsible for
amid a “fundamental, dramatically tion, to which its sales are closely wasn’t a 2015 release, re-sent”. opioid epidemic, which it said is likely to turn the company’s core business round only 247 prescriptions during the rele-
accelerating” transformation. aligned, contracted across the world. Net income in the second quarter, in be at the low end of the range, after it with a restructuring, while under pres- vant 10-year period.
The shift comes as the company, Having expected roughly flat produc- line with its indications last month, slid agreed earlier in the quarter to pay sure from litigation. Investors were further shaken by
which issued two profit warnings in tion of cars and light commercial vehi- 41 per cent to €485m. Sales fell 1 per $85m to the US state of Oklahoma on the Lawsuits include the opioid cases and Teva’s announcement yesterday that
2018 and another last month, reacts to cles, the group expects this to decline cent to €11.3bn. The shares rose about eve of a court case. a US Department of Justice investigation Michael McClellan, its chief financial
tumbling global car production that is by 5 per cent this year, as global trade 1 per cent yesterday but are down 36 per Kare Schultz, Teva president and into price-fixing at generics makers, officer, was planning to step down
knocking demand for its products. tensions drain confidence and leave cent over the past year. chief executive, said the mounting which accuses Teva of artificially because of a serious illness in his family.
Thursday 8 August 2019 ★ FINANCIAL TIMES 13
COMPANIES
Technology
COMPANIES
Banks
in coal veteran 35
30
Freyberg to restore 25
its fortunes 20
15
benefiting from demand for pany’s 150 industrial operations since First-half performance
December, with a mandate to lower
$bn
metals in shift to electric cars costs and improve performance.
Adjusted Net
“He makes us all feel comfortable,” ebitda income
said Mr Glasenberg, who has placed his
HENRY SANDERSON AND
DAVID SHEPPARD faith in Mr Freyberg at a time when 8 3.0
some of the close-knit band of traders, 2.5
As Glencore’s chief executive Ivan who once surrounded the chief execu-
6 2.0
Glasenberg scrambles to reassure inves- tive, have left the company.
tors that a poor first half set of results Mr Freyberg’s immediate focus will 1.5
will not be repeated, the spotlight has be turning round Glencore’s two key 4
fallen on a veteran coal miner to tame copper and cobalt mines in the Demo- 1.0
the company’s once swashbuckling cul- cratic Republic of Congo, which have 0.5
2
ture and put it back on track. struggled with lower metal prices, as
Peter Freyberg, a 60-year-old execu- well as higher taxes under a new mining 0
tive from South Africa who has spent code brought in by the Congo’s former 0 -0.5
most of his career in coal, will be key to president Joseph Kabila, last year. 2013 14 15 16 17 18 19
reversing a drop in earnings to their low- Analysts said the company would
Sources: Fastmarkets; company
est level in three years and positioning need to move fast as the mines were
the miner to take advantage of growing meant to be a key part of the company’s
demand for metals from the shift to pitch to investors rather than a drag on Glencore hopes copper mine in Zambia, reported a loss Freyberg results and failing to disclose the full perimeter fence around the sprawling
electric cars. results. “The market may start to lose to increase of $315m in the first half of the year. extent of its relationship with Dan Ger- mine to prevent further intrusions from
It will not be an easy task. Glencore’s patience as the record at these assets has production at its Mr Freyberg said he wanted to turn says his job tler, a billionaire businessman sanc- local miners. Glencore also wants to
prized mines in Africa, which it had been poor,” said Christopher LaFemina Katanga mine, the division from one set to consume is making tioned by the US. improve its own safety performance
hoped would be a cash cow as the move at Jefferies. which has more than $1bn in cash this year, to one Telis Mistakidis, Glencore’s former after 11 employee deaths at its opera-
towards electrified transport and bat- Glencore said the company would suffered from generating over $1.6bn in earnings by sure the head of copper, was fined $1.8m by the tions so far in 2019.
teries boost demand for cobalt, nickel shut its Mutanda mine for at least two maintenance 2023. He described his job at Glencore company Ontario Securities Commission for issu- “Our safety performance needs to be
and copper, have stumbled, dragging years from the end of 2019 due to the and operational as making sure the company could ing misleading financial statements, addressed and addressed very quickly,”
down the company’s results. impact of lower cobalt prices as well as problems “deliver what we say we were going to can ‘deliver shortly before he left the company. said Mr Freyberg.
The miner and trading house posted the new mining code. At the same time Simon Dawson/Bloomberg
deliver in a reliable fashion”. what we say Glencore also faces a US Department Paul Gait, an analyst at Bernstein, said
adjusted earnings before interest, tax, Glencore hopes to increase production Some analysts believe Mr Freyberg’s of Justice investigation into its behav- Mr Freyberg’s performance would now
depreciation and amortisation — the at its Katanga mine, which has suffered elevation is partly designed to reassure we were iour in numerous developing countries, be critical in proving Glencore had
measure most closely tracked by ana- from maintenance and operational investors unnerved by regulatory inves- going to including the DRC. grown beyond its sharp-elbowed trad-
lysts — of $5.6bn in the half year to June, problems. More than 40 miners who tigations into the company, which tradi- Mr Freyberg said yesterday Katanga ing roots. “He’s got the experience,” Mr
down almost a third on the same period had invaded the site died in June follow- tionally has had a reputation for being deliver’ would be restructured and corporate Gait said. “[But] if they don’t get this
last year. Net income, which was hit by a ing the collapse of part of a pit they were for being run by risk-hungry traders governance improved and he had sent right, those who say Glencore is a bunch
number of writedowns, fell 92 per cent working on. rather than engineers. Last year Cana- some of the company’s top mining spe- of traders who don’t know how to run
to $226m. The company’s African copper busi- dian regulators accused Glencore’s cialists to the DRC. mining assets will be in the ascendancy.”
Mr Freyberg, who is known as a “min- ness, which also includes the Mopani Katanga subsidiary of misstating its There are also plans to build a secure See Lex
MARKET DATA
S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,979.63 16,462.95 12,436.55 21,534.35 2,052.03
16,172.15 7,536.47
2,853.62 7,198.70 11,650.15 1,909.71
20,516.56
Day -0.98% Month -4.56% Year 0.13% Day 0.14% Month -2.25% Year -1.53% Day 0.38% Month -4.74% Year -6.78% Day 0.71% Month -4.42% Year NaN% Day -0.33% Month -5.66% Year -8.84% Day -0.41% Month -9.52% Year -16.48%
Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
42,818.66 1,528.10 9,273.90 28,116.28
8,141.73 3,329.46
40,158.73
7,785.75 1,449.92 8,746.10 25,997.03 3,184.69
Day -0.61% Month -4.59% Year -0.92% Day 0.94% Month -7.54% Year -19.26% Day 0.25% Month -5.62% Year -5.24% Day NaN% Month NaN% Year NaN% Day 0.08% Month -9.59% Year -6.48% Day 0.45% Month -5.35% Year -3.01%
Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
26,783.49 104,530.22 5,572.10 21,886.17 2,928.23 38,730.82
25,697.57 101,541.07
5,266.51 20,538.85 2,768.68 36,690.50
Day -1.28% Month -4.50% Year 0.82% Day -0.61% Month -2.50% Year 26.31% Day 0.61% Month -5.85% Year -3.85% Day -0.45% Month -6.59% Year -6.03% Day -0.32% Month -8.05% Year 2.35% Day -0.77% Month -7.14% Year -2.66%
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 40992.03 41317.03 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 22462.20 22539.28 Philippines Manila Comp 7917.39 7766.75 Taiwan Weighted Pr 10386.18 10394.75 Cross-Border DJ Global Titans ($) 320.14 322.45
Australia All Ordinaries 6588.50 6546.50 Czech Republic
PX 1015.70 1022.85 FTSE Italia Mid Cap 36691.67 36507.82 Poland Wig 56618.47 57082.76 Thailand Bangkok SET 1669.44 1671.48 Euro Stoxx 50 (Eur) 3307.10 3291.66
S&P/ASX 200 6519.50 6478.10 Denmark OMXC Copenahgen 20 990.64 984.98 FTSE MIB 20538.85 20631.74 Portugal PSI 20 4839.94 4833.37 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 1028.99 1022.90
S&P/ASX 200 Res 4679.60 4682.90 Egypt EGX 30 13655.91 13598.66 Japan 2nd Section 6471.11 6447.18 PSI General 3056.83 3040.16 UAE Abu Dhabi General Index 5080.97 5083.15 FTSE 4Good Global ($) 6895.16 6936.43
Austria ATX 2878.41 2890.19 Estonia OMX Tallinn 1269.14 1266.88 Nikkei 225 20516.56 20585.31 Romania BET Index 9064.84 9047.79 UK FT 30 2939.30 2928.30 FTSE All World ($) 330.87 332.27
Belgium BEL 20 3526.05 3505.48 Finland OMX Helsinki General 8995.32 9035.61 S&P Topix 150 1243.14 1242.06 Russia Micex Index 2682.69 2683.35 FTSE 100 7198.70 7171.69 FTSE E300 1449.92 1446.36
BEL Mid 7584.22 7565.44 France CAC 40 5266.51 5234.65 Topix 1499.93 1499.23 RTX 1291.06 1294.50 FTSE 4Good UK 6595.16 6569.05 FTSE Eurotop 100 2817.51 2810.71
Brazil Bovespa 101541.07 102163.69 SBF 120 4168.86 4143.90 Jordan Amman SE 1859.77 1861.85 Saudi-Arabia TADAWUL All Share Index 8394.07 8557.09 FTSE All Share 3935.76 3920.70 FTSE Global 100 ($) 1758.89 1766.85
Canada S&P/TSX 60 963.01 961.31 Germany M-DAX 25125.86 24943.79 Kenya NSE 20 2575.73 2586.68 Singapore FTSE Straits Times 3184.69 3170.47 FTSE techMARK 100 5297.92 5211.15 FTSE Gold Min ($) 1866.71 1819.84
S&P/TSX Comp 16172.15 16149.49 TecDAX 2788.68 2773.16 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 348.41 344.80 USA DJ Composite 8534.63 8632.73 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 682.75 736.56 XETRA Dax 11650.15 11567.96 Latvia OMX Riga 1037.73 1040.93 Slovenia SBI TOP 868.21 866.73 DJ Industrial 25697.57 26029.52 FTSE Multinationals ($) 1978.72 1967.71
Chile S&P/CLX IGPA Gen 24437.98 24326.22 Greece Athens Gen 837.56 844.47 Lithuania OMX Vilnius 693.08 695.29 South Africa FTSE/JSE All Share 55225.32 55062.01 DJ Transport 10031.02 10172.52 FTSE World ($) 589.39 592.02
China FTSE A200 9708.97 9749.99 FTSE/ASE 20 2068.62 2078.92 Luxembourg LuxX 1200.13 1234.29 FTSE/JSE Res 20 43608.55 43397.34 DJ Utilities 811.74 814.22 FTSEurofirst 100 (Eur) 3971.58 3961.73
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 25997.03 25976.24 Malaysia FTSE Bursa KLCI 1604.70 1611.79 FTSE/JSE Top 40 49253.74 49113.36 Nasdaq 100 7472.98 7521.32 FTSEurofirst 80 (Eur) 4558.40 4539.76
Shanghai A 2900.29 2909.61 HS China Enterprise 9993.34 10012.24 Mexico IPC 40158.73 39785.63 South Korea Kospi 1909.71 1917.50 Nasdaq Cmp 7785.75 7833.27 MSCI ACWI Fr ($) 503.97 501.47
Shanghai B 260.22 259.98 HSCC Red Chip 4083.13 4067.66 Morocco MASI 11590.75 11611.55 Kospi 200 252.00 253.41 NYSE Comp 12512.29 12628.14 MSCI All World ($) 2109.20 2097.32
Shanghai Comp 2768.68 2777.55 Hungary Bux 40283.52 40037.39 Netherlands AEX 539.57 537.27 Spain IBEX 35 8746.10 8699.40 S&P 500 2853.61 2881.77 MSCI Europe (Eur) 1529.64 1536.60
Shenzhen A 1551.88 1558.54 India BSE Sensex 36690.50 36976.85 AEX All Share 801.90 798.96 Sri Lanka CSE All Share 5889.68 5846.94 Wilshire 5000 29308.87 29578.64 MSCI Pacific ($) 2580.12 2608.69
Shenzhen B 923.59 923.26 Nifty 500 8854.65 8918.60 New Zealand NZX 50 10786.26 10587.17 Sweden OMX Stockholm 30 1528.19 1523.03 Venezuela IBC 35149.04 30443.16 S&P Euro (Eur) 1513.55 1506.92
Colombia COLCAP 1512.83 1503.00 Indonesia Jakarta Comp 6204.20 6119.47 Nigeria SE All Share 27669.38 27748.46 OMX Stockholm AS 590.23 588.69 Vietnam VNI 965.93 973.15 S&P Europe 350 (Eur) 1485.91 1482.17
Croatia CROBEX 1897.97 1904.28 Ireland ISEQ Overall 5816.16 5781.64 Norway Oslo All Share 920.90 929.68 Switzerland SMI Index 9533.98 9553.88 S&P Global 1200 ($) 2330.86 2341.10
Israel Tel Aviv 125 1485.09 1485.09 Pakistan KSE 100 30277.45 31000.67 Stoxx 50 (Eur) 3027.36 3022.30
(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.
CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Aug 7 Currency Mid Change Mid Change Mid Change Aug 7 Currency Mid Change Mid Change Mid Change Aug 7 Currency Mid Change Mid Change Mid Change Aug 7 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 45.6912 0.2962 51.2451 0.4638 55.5286 0.2875 Indonesia Indonesian Rupiah 14222.5000 -42.5000 15951.3039 -6.3382 17284.6505 -74.4414 Poland Polish Zloty 3.8525 -0.0074 4.3208 0.0029 4.6820 -0.0151 ..Three Month 0.8233 0.0011 0.9226 0.0036 - -
Australia Australian Dollar 1.4800 0.0038 1.6598 0.0086 1.7986 0.0023 Israel Israeli Shekel 3.4795 -0.0043 3.9024 0.0053 4.2286 -0.0107 Romania Romanian Leu 4.2168 -0.0114 4.7293 -0.0005 5.1246 -0.0206 ..One Year 0.8242 0.0009 0.9216 0.0036 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4228 0.0011 0.4582 -0.0006 Japan Japanese Yen 105.7700 -0.6150 118.6268 -0.3814 128.5426 -0.9173 Russia Russian Ruble 65.4738 0.1913 73.4324 0.4038 79.5705 0.1282 United States United States Dollar - - 1.1216 0.0029 1.2153 -0.0016
Bolivia Bolivian Boliviano 6.9100 - 7.7499 0.0200 8.3977 -0.0110 ..One Month 105.7698 -0.6155 118.6268 -0.3814 128.5425 -0.9176 Saudi Arabia Saudi Riyal 3.7511 0.0001 4.2071 0.0110 4.5587 -0.0059 ..One Month - - 1.1213 -0.0953 1.2155 -0.0016
Brazil Brazilian Real 3.9749 0.0002 4.4581 0.0117 4.8307 -0.0061 ..Three Month 105.7693 -0.6164 118.6268 -0.3813 128.5423 -0.9180 Singapore Singapore Dollar 1.3836 0.0031 1.5518 0.0074 1.6815 0.0015 ..Three Month - - 1.1208 -0.0954 1.2158 -0.0016
Canada Canadian Dollar 1.3310 0.0085 1.4927 0.0134 1.6175 0.0082 ..One Year 105.7676 -0.6199 118.6270 -0.3810 128.5425 -0.9189 South Africa South African Rand 15.0875 0.1500 16.9214 0.2115 18.3359 0.1584 ..One Year - - 1.1188 -0.0953 1.2167 -0.0017
Chile Chilean Peso 718.0400 1.0000 805.3207 3.1997 872.6363 0.0701 Kenya Kenyan Shilling 103.4000 0.0500 115.9687 0.3556 125.6623 -0.1043 South Korea South Korean Won 1214.9000 -0.4000 1362.5760 3.0735 1476.4718 -2.4272 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 7.0414 0.0085 7.8973 0.0299 8.5574 -0.0009 Kuwait Kuwaiti Dinar 0.3041 -0.0002 0.3410 0.0007 0.3695 -0.0007 Sweden Swedish Krona 9.6340 0.0432 10.8051 0.0762 11.7082 0.0372 Vietnam Vietnamese Dong 23216.0000 -46.5000 26038.0051 15.2456 28214.5548 -93.6079
Colombia Colombian Peso 3428.0000 -5.5650 3844.6884 3.7096 4166.0591 -12.2476 Malaysia Malaysian Ringgit 4.1890 -0.0015 4.6982 0.0105 5.0909 -0.0085 Switzerland Swiss Franc 0.9733 -0.0048 1.0916 -0.0026 1.1828 -0.0075 European Union Euro 0.8916 -0.0023 - - 1.0836 -0.0042
Costa Rica Costa Rican Colon 569.1900 -0.1650 638.3774 1.4651 691.7384 -1.1099 Mexico Mexican Peso 19.6683 0.0202 22.0590 0.0797 23.9029 -0.0068 Taiwan New Taiwan Dollar 31.4830 -0.0270 35.3099 0.0610 38.2614 -0.0831 ..One Month 0.8914 -0.0023 - - 1.0835 -0.0042
Czech Republic Czech Koruna 22.9638 -0.0671 25.7551 -0.0086 27.9079 -0.1184 New Zealand New Zealand Dollar 1.5485 0.0175 1.7367 0.0241 1.8819 0.0189 Thailand Thai Baht 30.8100 0.0425 34.5551 0.1368 37.4435 0.0025 ..Three Month 0.8908 -0.0023 - - 1.0833 -0.0042
Denmark Danish Krone 6.6534 -0.0193 7.4621 -0.0023 8.0858 -0.0341 Nigeria Nigerian Naira 362.7500 0.1500 406.8437 1.2191 440.8512 -0.3968 Tunisia Tunisian Dinar 2.8631 -0.0042 3.2111 0.0036 3.4795 -0.0097 ..One Year 0.8888 -0.0022 - - 1.0823 -0.0043
Egypt Egyptian Pound 16.5650 0.0410 18.5785 0.0939 20.1315 0.0234 Norway Norwegian Krone 8.9695 0.0633 10.0598 0.0969 10.9007 0.0628 Turkey Turkish Lira 5.4835 -0.0459 6.1500 -0.0355 6.6641 -0.0646
Hong Kong Hong Kong Dollar 7.8429 0.0045 8.7963 0.0278 9.5316 -0.0071 Pakistan Pakistani Rupee 158.2000 -0.3500 177.4298 0.0670 192.2610 -0.6786 United Arab Emirates UAE Dirham 3.6732 - 4.1196 0.0106 4.4640 -0.0059
Hungary Hungarian Forint 290.6202 0.0422 325.9462 0.8895 353.1916 -0.4128 Peru Peruvian Nuevo Sol 3.3797 -0.0033 3.7905 0.0061 4.1074 -0.0094 United Kingdom Pound Sterling 0.8228 0.0011 0.9229 0.0036 - -
India Indian Rupee 70.8663 0.0412 79.4803 0.2515 86.1240 -0.0630 Philippines Philippine Peso 52.3290 0.3790 58.6898 0.5756 63.5956 0.3776 ..One Month 0.8230 0.0011 0.9228 0.0036 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Aug 07 Aug 06 Aug 05 Aug 02 Aug 01 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 2939.30 2928.30 2939.50 3008.70 3074.20 0.00 3135.80 2704.70 Leisure Goods 45.31 Tobacco 14.63 Financials 6.70 FTSE 100 Price Change FTSE 100 Price Change
Aug 07 chge% Index Aug 06 Aug 05 ago yield% Cover ratio adj Return FT 30 Div Yield 1.97 1.98 1.97 1.92 1.88 0.00 3.93 2.74 Industrial Metals & 27.64 Media 14.52 FTSE SmallCap Index 5.82 3I Group PLC 1076 11.00 Land Securities Group PLC 777.80 5.60
FTSE 100 (100) 7198.70 0.38 6074.95 7171.69 7223.85 7776.65 4.48 1.50 14.87 186.27 6531.83 P/E Ratio net 22.70 22.52 22.63 23.24 23.72 0.00 19.44 14.26 Software & Comp Serv 24.90 Food Producers 14.20 Nonlife Insurance 4.88 Admiral Group PLC 2071 -2.00 Legal & General Group PLC 237.70 -7.60
FTSE 250 (250) 18941.00 0.50 15984.25 18846.20 18871.42 20770.64 3.27 1.47 20.83 355.74 14572.02 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Technology 24.63 Aerospace & Defense 13.95 Oil & Gas Producers 4.54 Anglo American PLC 1791.8 -16.60 Lloyds Banking Group PLC 50.24 -
FTSE 250 ex Inv Co (192) 19826.16 0.53 16731.23 19722.01 19732.81 22157.53 3.48 1.43 20.08 395.26 15589.95 FT 30 hourly changes Financial Services 23.42 General Retailers 13.93 Oil & Gas 4.34 Antofagasta PLC 825.00 15.60 London Stock Exchange Group PLC 6790 192.00
FTSE 350 (350) 3989.73 0.40 3366.92 3973.96 3999.05 4320.28 4.29 1.50 15.59 98.69 7239.83 8 9 10 11 12 13 14 15 16 High Low Beverages 22.53 Food & Drug Retailer 13.19 Real Est Invest & Tr 2.93 Ashtead Group PLC 2150 33.00 Marks And Spencer Group PLC 188.95 0.20
FTSE 350 ex Investment Trusts (291) 3941.32 0.39 3326.07 3925.92 3951.00 4277.64 4.37 1.48 15.44 99.20 3688.48 2928.3 2934.7 2938.8 3092 2944.9 2941.2 2933.6 2921.3 2941.3 2947.4 2919.2 Health Care Eq & Srv 21.14 Equity Invest Instr 11.76 Gas Water & Multi 1.62 Associated British Foods PLC 2371 - Melrose Industries PLC 170.15 1.80
FTSE 350 Higher Yield (109) 3471.62 0.08 2929.69 3468.76 3494.83 3938.58 6.14 1.34 12.11 114.97 6782.44 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Personal Goods 20.64 Consumer Services 11.31 Utilities 1.15 Astrazeneca PLC 7122 46.00 Micro Focus International PLC 1649.4 -10.80
FTSE 350 Lower Yield (241) 4184.35 0.72 3531.16 4154.25 4175.29 4300.28 2.37 1.90 22.18 66.12 4817.19 Electronic & Elec Eq 20.33 NON FINANCIALS Index 11.07 Mobile Telecomms 0.55 Auto Trader Group PLC 520.20 9.80 Mondi PLC 1562 8.50
FTSE SmallCap (281) 5418.47 0.03 4572.63 5416.63 5400.21 5912.22 3.79 0.82 32.14 111.56 8290.76 Tech Hardware & Eq 19.63 FTSE 100 Index 10.09 Forestry & Paper -0.21
FTSE SmallCap ex Inv Co (156) 4318.78 -0.33 3644.61 4333.13 4312.34 5025.29 4.32 1.40 16.51 89.25 6948.01 FX: EFFECTIVE INDICES Support Services 18.34 Life Insurance 10.04 Banks -0.29
Aveva Group PLC 3790 16.00 Morrison (Wm) Supermarkets PLC 184.65 -
Aviva PLC 382.00 0.30 National Grid PLC 843.10 12.10
FTSE All-Share (631) 3935.76 0.38 3321.37 3920.70 3944.15 4263.00 4.27 1.47 15.88 96.76 7217.15 Health Care 18.23 FTSE 250 Index 10.01 Electricity -0.56
Aug 06 Aug 05 Mnth Ago Aug 07 Aug 06 Mnth Ago Bae Systems PLC 553.40 17.40 Next PLC 5878 20.00
FTSE All-Share ex Inv Co (447) 3859.51 0.38 3257.03 3844.97 3868.69 4194.81 4.36 1.48 15.46 96.78 3669.56 Pharmace & Biotech 17.86 FTSE All{HY-}Share Index 9.92 Real Est Invest & Se -0.79 Barclays PLC 147.54 0.30 Nmc Health PLC 2000 -258.00
FTSE All-Share ex Multinationals (563) 1109.68 0.49 776.15 1104.22 1107.08 1258.06 4.08 1.38 17.73 27.46 2139.58 Australia - - - Sweden - - - Industrials 16.52 Industrial Transport 9.22 Chemicals -2.68 Barratt Developments PLC 631.60 7.20 Ocado Group PLC 1158 21.50
FTSE Fledgling (102) 9362.77 -0.36 7901.21 9396.92 9407.91 11235.40 5.34 -0.35 -53.52 174.79 18603.52 Canada - - - Switzerland - - - Consumer Goods 15.92 Mining 8.31 Telecommunications -6.17 Berkeley Group Holdings (The) PLC 3783 45.00 Pearson PLC 823.00 13.00
FTSE Fledgling ex Inv Co (46) 11039.09 -1.47 9315.85 11204.10 11219.46 16489.49 14.10 -0.36 -19.56 229.29 21527.04 Denmark - - - UK 74.61 74.47 76.32 Construct & Material 15.66 Travel & Leisure 7.47 Oil Equipment & Serv -6.63 Bhp Group PLC 1760 -18.80 Persimmon PLC 1908.5 12.00
FTSE All-Small (383) 3763.77 0.01 3176.23 3763.36 3752.88 4125.85 3.88 0.73 35.42 77.06 7389.62 Japan - - - USA - - - Industrial Eng 15.26 Basic Materials 7.22 Fixed Line Telecomms -19.42 BP PLC 505.60 -1.40 Phoenix Group Holdings PLC 674.50 18.00
FTSE All-Small ex Inv Co (202) 3225.49 -0.37 2721.98 3237.36 3222.44 3788.44 4.62 1.24 17.50 66.62 6573.65 New Zealand - - - Euro - - - Household Goods & Ho 6.95 Automobiles & Parts -35.59 British American Tobacco PLC 3006 26.00 Prudential PLC 1513 -8.00
FTSE AIM All-Share (770) 876.37 -2.20 739.57 896.11 907.25 1084.68 1.74 1.40 40.96 7.86 991.86 Norway - - -
British Land Company PLC 481.50 1.60 Reckitt Benckiser Group PLC 5961 31.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 184.40 0.30 Relx PLC 1924 44.50
Oil & Gas (13) 8810.32 -0.32 7435.00 8838.76 8961.41 10078.02 5.84 1.35 12.67 259.75 9094.53 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 2074 27.00 Rentokil Initial PLC 442.90 8.00
Oil & Gas Producers (9) 8530.61 -0.30 7198.95 8555.96 8676.35 9702.72 5.85 1.36 12.57 250.52 9122.75 Burberry Group PLC 2155 -5.00 Rightmove PLC 509.50 6.40
Oil Equipment Services & Distribution (4) 9690.19 -1.86 8177.51 9874.34 9895.11 14966.09 5.49 0.76 23.94 355.08 8149.63 FTSE GLOBAL EQUITY INDEX SERIES Carnival PLC 3578 79.00 Rio Tinto PLC 4195 -32.50
Basic Materials (26) 5942.93 -0.52 5015.22 5974.19 6056.38 6277.01 5.18 2.72 7.10 163.69 6639.13 Centrica PLC 68.38 -0.94 Rolls-Royce Holdings PLC 730.00 -29.00
Chemicals (8) 12989.62 -0.10 10961.90 13002.44 13308.29 17907.92 2.57 2.16 18.00 239.14 12170.54 Aug 6 No of US $ Day Mth YTD Total
YTD Gr Div Aug 6 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 2830 63.00 Royal Bank Of Scotland Group PLC 204.40 3.60
Forestry & Paper (1) 19187.61 0.55 16192.35 19083.19 19574.55 27393.32 4.24 2.66 8.89 576.00 22297.21 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 2030 31.00 Royal Dutch Shell PLC 2318.5 -11.00
Industrial Metals & Mining (2) 5988.59 -0.85 5053.75 6039.79 6095.64 5323.88 13.21 1.75 4.33 273.23 6703.50 FTSE Global All Cap 8889 567.51 0.5 -4.8 10.5 848.97
12.3 2.5 Oil & Gas Producers 108 327.01 -0.4 -0.4 -0.4 581.76 1.9 4.4 Crh PLC 2582 18.00 Royal Dutch Shell PLC 2330.5 -2.00
Mining (15) 16944.28 -0.62 14299.22 17049.94 17256.94 17155.69 5.30 2.82 6.69 473.88 9947.52 FTSE Global Large Cap 1774 504.19 0.5 -4.8 10.4 775.81
12.2 2.6 Oil Equipment & Services 34 244.33 -0.9 -0.9 9.6 383.36 12.6 4.9 Croda International PLC 4636 50.00 Rsa Insurance Group PLC 539.40 4.20
FTSE Global Mid Cap 2148 744.82 0.5 -5.1 10.7 1051.14
12.3 2.3 Basic Materials 354 456.51 -0.4 -0.4 2.0 742.20 4.1 3.5 Dcc PLC 6350 24.00 Sage Group PLC 702.20 -0.80
Industrials (105) 5353.77 0.73 4518.03 5315.04 5337.62 5818.06 2.64 1.00 37.76 81.78 5808.82
Construction & Materials (15) 5874.89 0.75 4957.80 5831.44 5857.90 6694.59 2.91 0.31 111.40 111.85 6585.43 FTSE Global Small Cap 4967 780.68 0.6 -4.7 11.5 1061.90
12.8 2.1 Chemicals 163 677.38 -0.6 -0.6 2.4 1098.89 4.4 2.9 Diageo PLC 3379 25.50 Sainsbury (J) PLC 190.25 1.95
Aerospace & Defense (10) 5037.88 0.88 4251.45 4993.87 5096.74 5947.15 2.70 -0.26 -143.25 79.10 5659.58 FTSE All-World 3922 332.27 0.5 -4.8 10.4 525.73
12.2 2.6 Forestry & Paper 20 223.37 -1.3 -1.3 -9.8 407.20 -7.3 4.5 Direct Line Insurance Group PLC 306.90 -0.40 Schroders PLC 2890 -4.00
General Industrials (6) 4477.24 -0.16 3778.33 4484.41 4526.86 5685.94 3.51 1.06 26.88 67.20 5412.03 FTSE World 2594 592.02 0.5 -4.6 11.0 1257.14
12.8 2.5 Industrial Metals & Mining 94 325.71 -0.1 -0.1 -9.0 529.70 -7.0 5.0 Evraz PLC 600.00 -2.20 Scottish Mortgage Investment Trust PLC 526.00 8.00
Electronic & Electrical Equipment (10) 8838.35 0.00 7458.65 8838.23 8757.33 8436.63 1.61 2.02 30.89 83.75 8359.27 FTSE Global All Cap ex UNITED KINGDOM In 8576 594.20 0.5 -4.7 11.0 873.73
12.7 2.4 Mining 77 646.10 0.0 0.0 10.4 1062.15 12.8 3.8 Experian PLC 2497 50.00 Segro PLC 742.40 12.40
Industrial Engineering (12) 12984.87 -1.84 10957.88 13228.09 13041.86 14560.09 2.53 1.57 25.14 224.42 16594.77 FTSE Global All Cap ex USA 7070 460.33 -0.5 -6.2 5.0 747.14
7.4 3.3 Industrials 750 400.22 0.6 0.6 14.1 601.20 15.7 2.1 Ferguson PLC 5990 66.00 Severn Trent PLC 1966.5 2.50
Industrial Transportation (6) 3647.15 1.72 3077.82 3585.48 3670.35 5051.51 6.03 0.87 19.14 141.07 3627.04 FTSE Global All Cap ex JAPAN 7552 584.61 0.6 -4.9 11.1 883.22
12.9 2.5 Construction & Materials 147 480.71 -0.1 -0.1 8.9 756.90 10.8 2.5 Flutter Entertainment PLC 6600 372.00 Smith & Nephew PLC 1839.5 22.50
Support Services (46) 8279.22 1.26 6986.81 8175.80 8180.15 8253.10 2.34 1.65 25.82 106.67 9014.96 FTSE Global All Cap ex Eurozone 8220 593.68 0.6 -4.7 10.9 869.53
12.6 2.4 Aerospace & Defense 35 841.34 1.4 1.4 19.1 1247.53 20.5 1.9 Fresnillo PLC 680.80 36.00 Smith (Ds) PLC 320.30 0.10
FTSE Developed 2172 539.99 0.5 -4.5 11.3 814.34
13.1 2.5 General Industrials 65 203.74 0.2 0.2 7.6 332.77 9.2 2.4 Glaxosmithkline PLC 1658 11.00 Smiths Group PLC 1536 1.00
Consumer Goods (42) 19731.77 0.69 16651.57 19595.83 19696.27 21386.38 4.18 1.65 14.49 444.77 15812.72
FTSE Developed All Cap 5696 565.84 0.5 -4.5 11.4 841.88
13.1 2.4 Electronic & Electrical Equipment 133 419.92 0.2 0.2 11.9 574.02 13.3 1.8 Glencore PLC 229.30 -2.05 Smurfit Kappa Group PLC 2376 -8.00
Automobiles & Parts (2) 4333.65 0.01 3657.15 4333.38 4277.53 10974.76 1.56 5.11 12.57 71.99 4388.63
FTSE Developed Large Cap 908 501.89 0.5 -4.4 11.3 769.66
13.2 2.6 Industrial Engineering 151 699.76 0.0 0.0 6.0 1042.66 7.9 2.7 Halma PLC 1910.5 14.50 Spirax-Sarco Engineering PLC 8060 -550.00
Beverages (5) 26833.65 0.84 22644.82 26610.13 26823.16 22719.73 2.00 1.77 28.16 230.70 19867.51
FTSE Developed Europe Large Cap 237 340.92 -0.5 -6.1 6.4 615.21
9.5 3.8 Industrial Transportation 129 703.85 0.4 0.4 14.3 1062.38 16.0 2.3 Hargreaves Lansdown PLC 1833 -44.00 Sse PLC 1083.5 9.50
Food Producers (11) 7275.43 -0.72 6139.71 7328.34 7343.11 7515.92 2.50 1.98 20.27 106.06 6591.24
FTSE Developed Europe Mid Cap 347 545.72 -0.2 -6.2 5.2 869.21
7.8 3.2 Support Services 90 465.44 1.2 1.2 25.9 663.45 27.0 1.5 Hiscox LTD 1586 5.00 St. James's Place PLC 933.00 1.40
Household Goods & Home Construction (15)12974.92 0.69 10949.49 12885.62 12941.53 14533.38 4.83 1.86 11.14 415.09 10059.32
FTSE Dev Europe Small Cap 739 757.39 0.0 -6.0 5.9 1164.27
8.3 3.2 Consumer Goods 549 466.16 0.2 0.2 10.1 728.50 12.0 2.8 HSBC Holdings PLC 627.40 -0.50 Standard Chartered PLC 627.00 -3.80
Leisure Goods (2) 13199.93 -0.80 11139.38 13305.93 13046.49 9840.81 3.49 1.37 20.89 217.80 13278.68
FTSE North America Large Cap 268 619.68 1.2 -3.5 14.9 880.29
16.3 2.1 Automobiles & Parts 136 334.50 -0.5 -0.5 -1.2 510.48 1.2 3.7 Imperial Brands PLC 2064 17.50 Standard Life Aberdeen PLC 260.60 -21.20
Personal Goods (5) 36241.54 0.65 30584.10 36006.15 36274.24 34189.58 2.73 2.67 13.73 519.74 26016.55
FTSE North America Mid Cap 407 864.15 1.1 -4.1 16.4 1134.99
17.5 1.8 Beverages 64 684.77 0.5 0.5 14.6 1077.88 16.0 2.4 Informa PLC 835.60 3.80 Taylor Wimpey PLC 148.75 2.25
Tobacco (2) 33246.41 0.87 28056.53 32960.11 33040.84 46880.94 7.21 1.21 11.50 1219.09 24233.09
FTSE North America Small Cap 1349 877.64 1.1 -3.7 16.3 1115.82
17.3 1.6 Food Producers 130 646.15 -0.3 -0.3 15.6 1033.63 17.7 2.3 Intercontinental Hotels Group PLC 5261 80.00 Tesco PLC 216.80 1.90
Health Care (19) 12081.81 0.60 10195.80 12009.43 12091.42 10989.51 3.46 0.90 32.14 244.55 10028.77
FTSE North America 675 409.97 1.2 -3.6 15.1 595.38
16.5 2.0 Household Goods & Home Construction 60 450.02 0.5 0.5 12.4 700.64 14.6 2.7 International Consolidated Airlines Group S.A. 456.80 10.60 Tui AG 820.00 18.40
Health Care Equipment & Services (9) 8230.66 0.26 6945.82 8209.45 8350.31 7887.43 1.66 2.51 24.02 90.60 7396.70
FTSE Developed ex North America 1497 241.69 -0.7 -6.0 5.0 422.42
7.4 3.4 Leisure Goods 44 205.40 0.2 0.2 11.0 278.39 12.0 1.3 Intertek Group PLC 5522 144.00 Unilever PLC 4863 37.00
Pharmaceuticals & Biotechnology (10)16528.94 0.65 13948.71 16422.50 16512.23 14959.80 3.69 0.81 33.64 355.14 12293.05
FTSE Japan Large Cap 189 354.32 -0.8 -3.5 4.8 480.01
6.2 2.6 Personal Goods 102 812.44 0.7 0.7 13.4 1184.45 14.7 1.9 Itv PLC 109.65 3.25 United Utilities Group PLC 759.00 -1.00
Consumer Services (90) 5146.90 1.41 4343.45 5075.17 5099.85 5489.57 3.05 1.82 18.08 110.42 5141.25 FTSE Japan Mid Cap 323 553.06 -0.7 -5.3 0.0 713.66
1.2 2.4 Tobacco 13 929.56 0.1 0.1 4.2 2130.97 7.4 6.3
Food & Drug Retailers (6) 3777.84 0.90 3188.11 3743.98 3782.39 4515.24 2.59 1.97 19.56 69.54 4616.28 Jd Sports Fashion PLC 597.40 8.60 Vodafone Group PLC 147.20 0.82
FTSE Global wi JAPAN Small Cap 825 604.91 -0.8 -5.6 2.4 808.32
3.7 2.3 Health Care 277 532.06 0.6 0.6 4.8 799.05 6.3 2.1 Johnson Matthey PLC 2887 -22.00 Whitbread PLC 4248 24.00
General Retailers (25) 2040.40 1.03 1721.89 2019.66 2019.10 2407.28 3.51 2.02 14.11 43.51 2512.79
FTSE Japan 512 148.85 -0.8 -3.8 3.8 225.93
5.2 2.6 Health Care Equipment & Services 92 1033.85 1.3 1.3 11.1 1230.67 11.8 1.0 Just Eat PLC 789.80 50.40 Wpp PLC 912.20 7.60
Media (20) 8779.57 1.58 7409.05 8642.77 8668.71 8476.95 2.95 1.88 18.08 198.54 5767.93
FTSE Asia Pacific Large Cap ex Japan 900 638.76 -0.8 -8.3 2.3 1067.80
4.3 3.1 Pharmaceuticals & Biotechnology 185 355.25 0.3 0.3 1.8 563.23 3.6 2.6 Kingfisher PLC 211.80 1.90
Travel & Leisure (39) 9218.27 1.58 7779.26 9074.51 9132.72 9858.49 3.12 1.64 19.53 197.82 9301.02
FTSE Asia Pacific Mid Cap ex Japan 825 777.04 -0.9 -10.3 -3.0 1246.07
-1.3 3.3 Consumer Services 453 508.59 0.9 0.9 13.7 701.23 14.8 1.5
Telecommunications (5) 2237.53 0.46 1888.25 2227.37 2239.94 2798.32 5.98 0.34 49.14 39.57 2844.27 FTSE Asia Pacific Small Cap ex Japan 1756 493.50 -0.7 -8.6 -1.1 773.74
0.6 3.1 Food & Drug Retailers 65 257.10 -0.7 -0.7 -1.9 376.72 -0.3 2.6
Fixed Line Telecommunications (3) 2249.39 0.22 1898.25 2244.47 2239.94 2825.25 7.80 1.42 9.01 3.29 2275.79
Mobile Telecommunications (2) 3332.72 0.55 2812.47 3314.45 3343.33 4163.32 5.26 -0.30 -63.22 81.43 3854.65
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1725 500.28
3193 696.36
-0.8
0.1
-8.5
-7.5
1.8 888.36
3.7
2.8 1107.35
5.1
3.1 General Retailers
3.2 Media
150 807.92
90 361.97
1.3
1.0
1.3
1.0
16.5 1075.54
16.9 502.53
17.2
18.2
1.0
1.8
UK STOCK MARKET TRADING DATA
Utilities (8) 6363.14 0.79 5369.83 6313.00 6400.27 7054.45 6.99 0.58 24.72 339.63 8352.58 FTSE Emerging Large Cap 866 663.97 0.1 -7.7 2.6 1063.21
4.8 3.1 Travel & Leisure 148 492.60 0.4 0.4 12.8 690.94 14.0 1.9 Aug 07 Aug 06 Aug 05 Aug 02 Aug 01 Yr Ago
Electricity (3) 6419.93 0.72 5417.76 6374.35 6422.54 7668.81 8.57 0.32 36.44 538.98 11093.60 FTSE Emerging Mid Cap 884 868.92 0.1 -6.8 4.0 1376.70
6.4 3.5 Telecommunication 92 150.25 0.0 0.0 4.9 308.95 8.0 4.5 - - - - - -
Gas Water & Multiutilities (5) 6005.88 0.82 5068.34 5957.26 6049.99 6515.96 6.55 0.67 22.69 269.37 7797.39 FTSE Emerging Small Cap 1443 689.34 0.4 -6.3 3.8 1049.38
6.0 3.3 Fixed Line Telecommuniations 38 123.05 0.3 0.3 4.0 282.14 7.8 5.3 Order Book Turnover (m) 66.34 109.71 129.38 129.38 129.38 189.56
Financials (306) 4669.32 0.10 3940.43 4664.53 4667.80 5252.76 4.44 1.55 14.51 129.27 4697.48 FTSE Emerging Europe 81 380.70 1.1 -6.2 16.6 671.65
22.5 6.4 Mobile Telecommunications 54 162.83 -0.4 -0.4 6.1 295.50 8.4 3.5 Order Book Bargains 1019550.00 1079421.00 1105241.00 1105241.00 1105241.00 985680.00
Banks (10) 3536.55 0.03 2984.48 3535.50 3533.30 4275.81 5.57 1.75 10.29 122.86 2877.52 FTSE Latin America All Cap 235 892.02 1.0 -6.9 6.0 1465.93
8.1 3.4 Utilities 189 294.83 0.6 0.6 9.8 618.04 12.3 3.5 Order Book Shares Traded (m) 1639.00 2035.00 1874.00 1874.00 1874.00 1524.00
Nonlife Insurance (8) 3604.96 0.45 3042.22 3588.86 3611.90 3664.91 3.93 1.55 16.38 90.34 6831.98 FTSE Middle East and Africa All Cap 334 645.90 0.0 -5.2 1.5 1074.06
3.9 3.6 Electricity 130 330.39 0.8 0.8 10.4 682.45 12.8 3.4 Total Equity Turnover (£m) 4183.61 6266.27 5854.24 5854.24 5854.24 6160.10
Life Insurance/Assurance (7) 7174.37 -0.72 6054.43 7226.66 7205.53 8684.86 5.14 1.71 11.37 248.62 7669.73 FTSE Global wi UNITED KINGDOM All Cap In 313 307.80 -0.4 -7.6 1.9 559.89
4.5 4.4 Gas Water & Multiutilities 59 297.68 0.3 0.3 8.5 644.76 11.3 3.8 Total Mkt Bargains 1162414.00 1244338.00 1283743.00 1283743.00 1283743.00 1125008.00
Real Estate Investment & Services (18) 2307.56 0.13 1947.34 2304.48 2296.06 2685.12 2.52 1.82 21.80 29.04 6481.22 FTSE Global wi USA All Cap 1819 706.35 1.3 -3.7 15.3 970.39
16.6 1.9 Financials 840 237.97 0.4 0.4 8.8 415.20 11.3 3.4 Total Shares Traded (m) 3777.00 4013.00 3912.00 3912.00 3912.00 3778.00
Real Estate Investment Trusts (40) 2441.33 0.57 2060.23 2427.49 2426.65 2815.24 4.74 0.32 66.89 69.52 3328.36 FTSE Europe All Cap 1478 399.83 -0.4 -6.1 6.5 694.73
9.5 3.7 Banks 277 189.14 -0.1 -0.1 2.8 359.43 5.8 4.4 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (39) 9513.97 0.16 8028.81 9498.98 9542.17 9338.84 3.55 1.80 15.61 200.17 11715.95 FTSE Eurozone All Cap 669 385.91 -0.4 -6.3 6.5 672.79
9.6 3.5 Nonlife Insurance 72 282.62 0.8 0.8 10.4 431.19 12.5 2.3 (c) Market closed.
Equity Investment Instruments (184) 10448.64 0.49 8817.57 10397.64 10425.01 10594.13 2.57 1.25 30.97 163.45 6031.64 FTSE RAFI All World 3000 3290 6435.88 0.1 -5.7 5.8 9073.70
8.1 3.4 Life Insurance 60 216.01 -0.1 -0.1 8.0 368.76 10.4 3.4
Non Financials (325) 4728.28 0.48 3990.18 4705.64 4742.36 5053.93 4.21 1.45 16.41 111.24 7592.76 FTSE RAFI US 1000 1063 11532.30 1.1 -4.0 11.6 15903.87
13.3 2.6 Financial Services 203 330.49 1.3 1.3 19.2 473.52 20.6 1.9
Technology (17) 2109.67 0.07 1780.34 2108.13 2100.24 1880.64 3.00 0.75 44.43 40.98 2866.31 FTSE EDHEC-Risk Efficient All-World 3922 391.42 0.5 -4.5 9.2 571.94
10.9 2.6 Technology 265 301.06 1.0 1.0 19.1 380.07 20.1 1.4 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2346.00 -0.06 1979.78 2347.51 2341.70 2099.04 3.07 0.69 46.98 46.65 3371.60 FTSE EDHEC-Risk Efficient Developed Europe 584 298.27 -0.2 -5.7 4.5 483.92
7.1 3.3 Software & Computer Services 134 543.47 1.0 1.0 20.6 644.99 21.1 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 (3) 3121.07 2.77 2633.86 3036.94 2949.86 2565.57 1.73 2.66 21.81 32.78 3783.05 Oil & Gas 153 335.51 -0.5 -8.5 1.1 584.29
3.5 4.4 Technology Hardware & Equipment 131 214.37 1.0 1.0 17.1 286.24 18.8 2.2 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 11 102.49 0.7 0.7 8.5 143.43 10.0 1.6 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 145 330.59 -0.8 -0.8 3.7 584.59 5.8 3.2 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7493.68 7500.43 7500.84 7524.03 7534.15 7530.22 7539.56 7534.97 7547.98 7551.60 7487.74 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 19842.65 19840.13 19858.18 19868.64 19881.76 19871.28 19865.93 19836.57 19853.07 19886.46 19817.88 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 5550.33 5553.94 5557.41 5553.30 5553.09 5555.71 5557.23 5555.78 5556.79 5563.15 5550.33
FTSE All-Share 4098.77 4101.77 4102.63 4113.11 4118.00 4115.99 4119.98 4116.97 4123.27 4124.95 4095.84 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:15:08:00 Day's Low07:05:00 FTSE 100 2010/11 High: 7609.32(03/07/2019) Low: 6692.66(03/01/2019) 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:15:08:00 Day's Low07:05:00 FTSE 100 2010/11 High: 4150.07(03/07/2019) Low: 3657.52(03/01/2019) 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.
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.
16 ★ FINANCIAL TIMES Thursday 8 August 2019
MARKET DATA
FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Altice 4.33 4.35 -0.02 -0.55 0.96 28.5 38.60 Gree Elec Apl 0.01 0.02 0.00 -6.67 -0.01 -30.0 0.00 Aug 07 date Coupon S* M* F* price yield yield yield US Aug 07 date Coupon S* M* F* price yield yield yield US
Nomura 381.80 383.20 -1.40 -0.37 33.70 9.7 -0.50 Delphi 15.18 15.14 0.04 0.26 -3.56 -19.0 -17.56 High Yield US$ US$
Fuji Hvy Ind 2809.00 2760.00 49.00 1.78 232.00 9.0 -0.32 Prudntl 83.64 86.23 -2.59 -3.00 -17.67 -17.4 -18.56 Qwest Capital Funding, Inc. 08/21 7.63 B+ WR BB 105.05 4.93 0.03 -1.12 3.18 Barclays plc 01/28 4.34 BBB Baa3 A 103.15 3.84 0.01 -0.07 -
Kroger 22.91 22.28 0.63 2.81 1.75 8.2 5.29 Halliburton 19.36 19.95 -0.59 -2.96 -3.64 -15.8 -15.91 High Yield Euro FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa1 A 123.21 3.65 -0.01 -0.05 -
Cielo 7.77 7.93 -0.16 -2.02 0.53 7.3 12.81 RollsRoyce 730.00 759.00 -29.00 -3.82 -132.00 -15.3 -15.17 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 Barclays plc 01/28 4.34 BBB Baa3 A 103.15 3.84 0.01 -0.07 -
CME Grp 208.49 208.38 0.11 0.05 14.07 7.2 2.81 Marathon Ptl 47.83 49.59 -1.76 -3.55 -8.56 -15.2 -12.92 FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa1 A 123.21 3.65 -0.01 -0.05 -
Bhartiartl 366.10 368.45 -2.35 -0.64 20.35 5.9 0.36 Schlmbrg 34.00 35.46 -1.46 -4.12 -5.97 -14.9 -14.05 Emerging US$ NationsBank Corp. 03/28 6.80 BBB+ Baa1 A 123.46 3.60 -0.01 -0.10 -
ItauHldFin 31.22 30.60 0.62 2.03 1.32 4.4 -1.73 ShenwanHong 0.06 0.06 0.00 -4.69 -0.01 -14.1 -23.75 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 NationsBank Corp. 03/28 6.80 BBB+ Baa1 A 123.46 3.60 -0.01 -0.10 -
VertexPharm 173.83 176.94 -3.11 -1.76 7.21 4.3 -2.52 Glencore 229.30 231.35 -2.05 -0.89 -37.15 -13.9 -99.17 Brazil 01/22 12.50 BB- Ba2 BB- 114.05 6.13 -0.12 -0.16 4.38
Brazil 01/23 2.63 BB- Ba2 BB- 95.75 3.80 -0.01 -0.40 1.29 Euro
PublStor 251.86 250.08 1.78 0.71 9.10 3.7 2.69 CharlesSch 37.24 39.41 -2.17 -5.51 -5.98 -13.8 -8.87 Citigroup Inc. 02/30 4.25 BBB Baa2 A- 118.21 0.87 0.05 -0.08 -0.84
Northrop 358.44 354.25 4.19 1.18 12.87 3.7 10.38 MylanNV 18.04 18.20 -0.16 -0.88 -2.86 -13.7 -7.67 Colombia 03/23 2.63 BBB- Baa2 BBB 97.75 3.24 0.10 -0.38 0.99
Poland 03/23 3.00 A- A2 A- 100.62 2.83 0.01 -0.21 0.58 HBOS plc 03/30 4.50 BBB- Baa1 A- 113.37 1.53 0.01 0.22 -0.18
Hind Unilevr 1777.25 1744.10 33.15 1.90 57.35 3.3 -0.79 ING 8.74 8.75 -0.01 -0.07 -1.33 -13.2 -16.71 HBOS plc 03/30 4.50 BBB- Baa1 A- 113.37 1.53 0.01 0.22 -0.18
BrisMySq 45.87 45.69 0.18 0.39 1.46 3.3 -0.07 Citic Secs 13.36 13.46 -0.10 -0.74 -1.96 -12.8 -14.03 Turkey 03/23 3.25 - Ba3 BB 88.50 6.59 -0.30 0.91 4.34
Mexico 10/23 4.00 BBB+ A3 BBB 104.90 2.74 -0.03 -0.15 1.18 Goldman Sachs Group, Inc. (The) 02/31 3.00 BBB+ A3 A 123.89 0.82 -0.01 -0.24 -0.89
AmerMvl 13.81 13.38 0.43 3.21 0.38 2.8 -3.16 Devon Energy 23.56 24.22 -0.66 -2.73 -3.44 -12.7 -15.59
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Yen
Yum!Brnds 115.63 116.05 -0.42 -0.36 3.11 2.8 4.90 ChngKng 53.40 52.65 0.75 1.42 -7.70 -12.6 -13.59
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Mexico 06/26 1.09 BBB+ A3 BBB 101.57 0.85 0.01 0.03 -
BCE 61.21 60.77 0.44 0.72 1.57 2.6 1.22 SHK Props 111.80 113.40 -1.60 -1.41 -16.00 -12.5 -18.11
SunPhrmInds 421.05 418.20 2.85 0.68 10.70 2.6 12.21 MitsubishiEle 1301.00 1318.00 -17.00 -1.29 -182.50 -12.3 -11.77 Russia 06/28 12.75 BBB- Baa3 BBB- 165.65 3.92 -0.02 -0.10 - £ Sterling
Iberdrola 8.79 8.70 0.09 1.01 0.22 2.5 4.12 ValeroEngy 74.78 76.84 -2.06 -2.68 -10.47 -12.3 -8.65 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 140.42 2.05 0.01 -0.24 0.34
Intcntl Exch 89.96 90.57 -0.61 -0.67 2.10 2.4 0.54 GuosenSec 12.09 12.24 -0.15 -1.23 -1.66 -12.1 -9.10 Brazil 04/21 2.88 BB- Ba2 BB- 104.44 0.17 0.00 -0.08 -1.58 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
McDonald's 215.55 214.08 1.47 0.69 4.83 2.3 2.09 HaitongSecs 7.09 7.13 -0.04 -0.56 -0.97 -12.0 -15.48 Mexico 02/22 1.88 BBB+ A3 BBB 104.25 0.20 0.00 0.04 -1.55 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Aug 07 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Aug 07 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 2.25-2.50 19-12-2018 2.00-2.25 2.00-2.25 1.25-1.50 Index change change change 1 month 1 year VIX 21.57 1.40 20.17 36.20 11.03 Aug 07 Price £ Yield Day Week Month Year High Low £m
US Prime 5.50 19-12-2018 5.25 5.25 4.25 Markit IBoxx VXD 21.11 1.38 19.73 33.17 4.07 - - - - - - - - -
US Discount 3.00 19-12-2018 2.75 2.75 1.75 ABF Pan-Asia unhedged 199.75 -0.05 -0.87 4.49 -0.42 7.50 VXN 25.34 1.07 24.27 38.70 14.55 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 373.91 -0.10 0.57 10.30 1.62 9.02 VDAX 21.59 -0.22 21.81 - 10.48 Tr 3.75pc '19 100.25 0.63 3.28 -1.56 -17.11 0.00 102.23 100.00 28.74
UK Repo 0.75 02-08-2018 0.50 0.50 0.25 Corporates($) 304.32 0.37 1.05 11.25 1.05 11.25 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 102.43 0.56 3.70 5.66 -12.50 -16.42 106.40 102.43 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 239.07 0.07 -0.06 6.92 0.92 5.71 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 101.53 0.44 2.33 2.33 -21.43 -43.59 101.87 101.20 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 255.32 0.20 0.78 8.58 1.63 9.51 Tr 4pc '22 109.38 0.35 6.06 0.00 -30.00 -58.33 111.30 109.00 38.39
Gilts( £) 354.34 -0.12 1.58 8.94 2.49 9.22 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 125.85 0.32 -3.03 -21.95 -41.82 -71.93 125.90 122.06 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 276.97 0.70 1.24 7.19 1.10 5.62 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 106.72 0.39 -7.14 -26.42 -40.91 -71.53 106.72 96.94 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 365.38 -0.07 0.64 8.98 1.61 8.15 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 143.67 0.69 -6.76 -19.77 -28.87 -56.60 143.67 128.48 35.86
Aug 07 (Libor: Aug 06) night Day Week Month month month month year Overall ($) 259.75 0.59 1.48 8.55 1.48 8.55 Australia 12/21 2.00 102.96 0.74 0.03 -0.10 -0.21 -1.43 Tr 4.25pc '36 151.95 0.88 -6.38 -17.76 -24.14 -47.93 151.95 133.08 30.11
US$ Libor 2.09713 -0.008 -0.252 -0.010 2.21275 2.18700 2.05113 1.99413 Overall( £) 354.26 -0.10 1.28 8.94 2.22 8.88 11/28 2.75 115.08 1.04 0.03 -0.16 -0.25 -1.65 Tr 4.5pc '42 170.83 1.06 -6.19 -15.87 -20.30 -40.11 170.83 145.84 26.95
Euro Libor -0.46200 0.000 0.004 0.005 -0.42557 -0.41600 -0.43086 -0.36571 Overall(€) 247.68 0.14 0.57 7.57 1.39 7.93 Austria 10/23 1.75 110.48 -0.70 -0.01 -0.08 -0.12 -0.64 Tr 3.75pc '52 173.24 1.10 -5.98 -15.38 -17.29 -35.67 173.24 141.38 23.87
£ Libor 0.67000 -0.001 0.002 -0.006 0.70538 0.77288 0.80250 0.84463 Treasuries ($) 242.65 0.75 1.83 7.13 1.83 7.13 02/47 1.50 131.04 0.32 -0.03 -0.21 -0.28 -1.03 Tr 4pc '60 195.64 1.08 -5.26 -14.96 -16.92 -33.74 195.64 156.07 23.89
Swiss Fr Libor 0.001 -0.81920 -0.78160 -0.76940 -0.65760 FTSE Belgium 06/21 1.50 104.09 - - - - - Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.010 -0.10083 -0.09800 -0.03400 0.04783 Sterling Corporate (£) - - - - - - 06/47 1.60 126.60 - - - - -
Euro Euribor
Sterling CDs
0.001
0.000
-0.40000
0.75000
-0.38900
0.77000
-0.38300
0.82500
-0.31900 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 Canada - - - - - - - GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 431.71 -12.66 - - 0.16 7.46 03/21 0.75 98.94 1.44 -0.10 -0.16 -0.23 -0.69
US$ CDs 0.000 2.45000 2.56000 2.65000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 Denmark 11/20 0.25 101.40 - - - - - Price Indices Day's Total Return Return
Euro CDs - - - - 11/23 1.50 110.00 - - - - - Fixed Coupon Aug 07 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 91.80 -0.02 2462.22 0.34 1.88 0.36
Short 7 Days One Three Six One Index change change change high low Finland - - - - - - -
09/20 0.38 101.18 -0.69 -0.01 -0.03 -0.04 -0.16 2 5 - 10 Years 187.97 0.18 3725.02 1.46 7.41 0.38
Aug 07 term notice month month month year Markit iTraxx 3 10 - 15 Years 224.96 0.47 4721.28 2.43 11.15 0.63
Euro -0.61 -0.31 -0.59 -0.29 -0.56 -0.26 -0.56 -0.26 -0.59 -0.29 -0.57 -0.27 Crossover 5Y 284.89 3.68 32.15 37.60 315.74 234.62 France 11/20 0.25 101.22 -0.68 0.01 -0.03 -0.05 -0.21
4 5 - 15 Years 196.36 0.26 3969.50 1.74 8.44 0.47
Sterling 0.45 0.55 0.70 0.80 0.72 0.82 0.75 0.90 0.78 0.93 Europe 5Y 57.40 0.70 7.48 6.37 73.15 45.37 05/25 0.50 106.44 -0.59 -0.02 -0.08 -0.14 -0.81
5 Over 15 Years 377.88 1.37 6042.46 4.49 15.57 1.06
Swiss Franc - - - - - - - - - - - - Japan 5Y 62.75 -0.58 7.36 4.36 72.09 53.56 05/48 2.00 138.80 0.54 -0.03 -0.20 -0.23 -1.04
7 All stocks 189.92 0.72 3942.64 2.67 9.69 0.94
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 69.68 -0.05 6.34 7.70 93.48 53.22 Germany - - - - - - -
US Dollar 2.06 2.36 2.04 2.34 2.08 2.38 2.05 2.35 1.96 2.26 1.86 2.16 10/20 0.25 101.22 -0.77 -0.01 -0.06 -0.06 -0.19 Day's Month Year's Total Return Return
Markit CDX 02/25 0.50 107.29 -0.79 -0.02 -0.09 -0.15 -0.76
Japanese Yen -0.05 0.15 -0.20 0.00 -0.10 0.20 -0.15 0.15 -0.20 0.10 0.00 0.30 Index Linked Aug 07 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 182.55 -4.46 24.60 17.01 211.60 155.49 08/48 1.25 137.62 -0.04 -0.03 -0.22 -0.29 -1.08
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 1 Up to 5 Years 313.93 -0.15 0.90 1.51 2540.64 0.90 2.99
Nth Amer High Yld 5Y 353.32 -7.65 36.42 - 360.97 311.41 Greece 02/25 3.00 110.08 2.10 -0.04 -0.01 -0.13 -1.92
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 817.58 0.34 3.83 14.43 6151.40 3.88 14.96
Nth Amer Inv Grade 5Y 59.41 -2.72 6.80 5.34 70.26 49.61 02/25 3.00 110.08 2.10 -0.04 -0.01 -0.13 -1.92
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 523.24 0.00 2.65 9.97 4130.26 2.77 10.94
Ireland 10/20 5.00 106.77 -0.62 -0.03 -0.06 -0.05 -0.22 4 Over 15 years 1065.76 0.45 4.19 15.83 7818.97 4.22 16.20
05/30 2.40 124.72 0.09 -0.02 -0.18 -0.06 -0.98 5 All stocks 729.98 0.28 3.42 13.14 5583.84 3.47 13.77
Italy 11/21 0.35 100.46 0.14 -0.04 -0.01 -0.14 -1.35
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 10/23 0.65 100.30 0.58 -0.05 -0.04 -0.19 -1.56 Yield Indices Aug 07 Aug 06 Yr ago Aug 07 Aug 06 Yr ago
09/28 4.75 129.35 1.31 -0.04 -0.08 -0.21 -1.71 5 Yrs 0.23 0.24 0.98 20 Yrs 1.07 1.13 1.78
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 120.54 2.45 -0.04 -0.14 -0.20 -1.11 10 Yrs 0.54 0.58 1.44 45 Yrs 1.09 1.16 1.61
Crude Oil† Aug 52.86 -0.91 Corn♦ Sep 405.50 0.75 Aug 06 Aug 06 Prev return stock Market stocks
Japan 12/21 0.10 100.77 -0.22 -0.01 -0.01 -0.01 -0.13 15 Yrs 0.88 0.94 1.69
Brent Crude Oil‡ 56.46 -2.40 Wheat♦ Sep 482.25 -2.25 Can 4.25%' 21 109.32 0.211 0.282 0.19 5.18 85053.19 8
12/23 0.60 103.83 -0.27 0.00 -0.03 -0.02 -0.22
RBOB Gasoline† Aug 1.68 -0.01 Soybeans♦ Sep 853.50 4.00 Fr 2.25%' 20 - - - - - - -
12/28 2.10 121.79 -0.20 0.01 -0.02 -0.01 -0.33 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Sep 296.90 2.00 Swe 0.25%' 22 115.59 -2.281 -2.291 -0.08 33.18 245665.53 7
09/47 0.80 113.72 0.29 0.02 -0.05 -0.03 -0.53 Real yield Aug 07 Dur yrs Previous Yr ago Aug 07 Dur yrs Previous Yr ago
Natural Gas† Aug 2.14 0.04 Cocoa (ICE Liffe)X Sep 1742.00 -19.00 UK 2.5%' 22 117.37 -3.098 -3.124 0.05 15.74 746571.12 28
Netherlands 07/21 3.25 107.92 - - - - - Up to 5 yrs -2.65 3.01 -2.70 -1.84 -3.10 3.03 -3.15 -2.28
Ethanol♦ - - Cocoa (ICE US)♥ Sep 2224.00 -32.00 UK 2.5%' 24 376.67 -2.917 -2.944 0.14 6.82 746571.12 28
07/25 0.25 105.55 - - - - - Over 5 yrs -2.12 25.48 -2.11 -1.60 -2.14 25.53 -2.13 -1.62
Uranium† Aug 25.15 0.00 Coffee(Robusta)X Sep 1302.00 -2.00 UK 2%' 35 302.88 -2.459 -2.463 1.25 9.08 746571.12 28
Carbon Emissions‡ - - Coffee (Arabica)♥ Sep 96.80 0.30 New Zealand - - - - - - - 5-15 yrs -2.68 10.29 -2.68 -1.65 -2.73 10.30 -2.73 -1.76
US 0.625%' 21 100.46 0.385 0.362 0.16 35.84 1398380.21 40
White SugarX 308.70 -7.70 05/21 6.00 108.00 - - - - - Over 15 yrs -2.06 29.68 -2.05 -1.59 -2.08 29.71 -2.06 -1.61
Diesel† - - US 3.625%' 28 129.55 0.193 0.216 1.05 16.78 1398380.21 40
Sugar 11♥ 11.67 -0.08 Norway - - - - - - - All stocks -2.13 22.50 -2.12 -1.60 -2.16 22.59 -2.14 -1.63
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1754.00 -8.00 Cotton♥ Oct 57.86 -0.22 05/21 3.75 104.57 - - - - - See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1270.00 -20.00 Orange Juice♥ Sep 100.80 -2.15 Portugal 04/21 3.85 107.50 - - - - - ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 5720.50 16.00 Palm Oil♣ - - 10/23 4.95 122.25 - - - - - Gilt Closing Prices information contained herein is proprietary to
Lead 2008.50 17.00 Live Cattle♣ Aug 107.20 0.00 BONDS: TEN YEAR GOVT SPREADS Spain 01/21 0.05 100.82 -0.50 -0.01 -0.03 -0.08 -0.37 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 15240.00 285.00 Feeder Cattle♣ Aug 140.05 -0.35 10/28 5.15 146.11 0.12 0.00 -0.12 -0.14 -1.27 accurate, complete or timely; and does not constitute investment advice.
Tin 16780.00 -230.00 Lean Hogs♣ Oct 77.13 0.00 Spread Spread Spread Spread Sweden 12/20 5.00 107.45 - - - - - Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2265.50 -39.50 Bid vs vs Bid vs vs 11/23 1.50 109.24 - - - - -
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland - - - - - - - All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1465.25 0.00 Aug 06 Month Year 04/21 2.00 105.25 -1.01 0.02 -0.06 -0.14 -0.39 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.04 - -0.67 Italy 1.31 - -0.40
Silver (US cents) 1638.50 -10.00 S&P GSCI Spt 386.28 -8.55 -16.85 United Kingdom 01/21 1.50 101.54 0.44 0.00 -0.01 -0.13 -0.33 Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria -0.70 - - Japan -0.20 - -1.91
Platinum 852.00 -4.00 DJ UBS Spot 75.86 -4.08 -10.79 Belgium - - - Netherlands - - - 09/23 2.25 107.83 0.32 0.01 -0.08 -0.21 -0.70 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 1444.00 6.00 TR/CC CRB TR 176.05 -7.18 -11.60 Canada - - - Norway - - - 12/28 6.00 150.32 0.48 0.01 -0.12 -0.23 -0.89 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark - - - Portugal - - - 07/47 1.50 107.23 1.20 0.01 -0.16 -0.18 -0.55
Iron Ore 92.80 -5.10 UBS Bberg CMCI TR 13.62 -5.51 -9.62 Finland - - - Spain 0.12 - -1.59 United States 11/20 1.75 100.00 1.75 0.03 -0.21 -0.23 -0.94 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 58.50 -1.50 LEBA EUA Carbon 28.19 0.00 26.98 France 0.54 - - Switzerland - - - 12/23 2.25 102.92 1.56 0.01 -0.29 -0.29 -1.27
Baltic Dry Index 1712.00 -22.00 LEBA CER Carbon 0.21 0.00 -19.23 Germany - - - United Kingdom 0.48 - -1.23 11/28 5.25 130.28 1.71 0.01 -0.32 -0.31 -1.23
LEBA UK Power 1790.00 31.62 -44.50 Greece 2.10 - - United States 1.71 - 0.00 11/47 2.75 109.93 2.27 -0.03 -0.32 -0.28 -0.82
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.
Thursday 8 August 2019 ★ FINANCIAL TIMES 17
Fixed income
Fixed income. Sovereign guarantee
Occidental’s
Investors eye Pemex bonds $13bn debt
sale draws
as a buying opportunity heavy demand
RICHARD HENDERSON — NEW YORK
Surprise dovishness from central banks Dalio stays bullish on China investing
triggers bout of Asian forex weakness despite escalating trade war with US
EVA SZALAY central banks came amid worries about safe havens like the yen and the dollar,” LINDSAY FORTADO — NEW YORK jing in 2011 to be closer to clients there, and commentary on investing there.
global trade, sluggish economic data said Mark McCormick, global head of although it was not until more recently “I believe China is a competitor of the
Asian currencies notched up broad- Ray Dalio, founder of Bridgewater
and escalating Sino-US trade tensions. FX strategy at TD Securities. that the Chinese market opened up to United States or Chinese businesses are
based declines yesterday after central Associates, the world’s largest hedge
In response, investors have sought the The Australian dollar fell to its lowest allow foreign investors to launch competitors of American businesses or
banks in the region delivered larger fund, has made a resounding argument
safety of the US dollar and the Japanese levels against the greenback in more onshore funds. Bridgewater launched other business around the world and
than expected rate cuts and warned of for investing in China even as a trade
yen while currencies linked to risker than a decade, “sinking in sympathy” an onshore fund investing in Chinese that therefore you want to be, if you’re
mounting growth concerns. war between Beijing and Washington
trades were sold, such as Australian and with its New Zealand peer, said Win securities last year. diversified, having bets on both horses
appears to be escalating.
The dovish tone caught investors off New Zealand dollars and the South Afri- Thin, global head of currency strategy at The appearance of the half-hour in the race,” Mr Dalio said.
guard, leading to the selling of both can rand. Brown Brothers Harriman, after the In a video posted online on Tuesday, a video online on Tuesday pointedly He said the two countries are unlikely
developed and emerging markets “Global central banks have delivered country’s reserve bank kept its rates day after Sino-US trade tension spread invited investors to look past the latest to go to “classic war” but added: “I think
currencies in the region with some, such with gusto over the past 24 hours . . . unchanged at historic lows on Tuesday. to the currency markets, Mr Dalio said there’s a restructuring of the world
as the Australian dollar, “sinking in for now, sentiment should remain rocky The Indian rupee also declined there remained a historic opportunity order, in terms of changes in supply
sympathy” with peers. and that should reinforce support of against the US dollar. to buy into a country that is opening up
‘The US is risky in its own chains, who’s making what technolo-
The New Zealand dollar fell 2 per cent In China, officials fixed the onshore its markets to foreign investors over the ways, the conflict between gies.”
against the greenback to trade at its renminbi’s rate at its lowest since 2008 long term. In the video, Mr Dalio dismissed the
weakest level since the start of 2016 but kept it below the key Rmb7 against “Would you not have wanted to invest
socialism and capitalism idea that investing in China now is too
after the country’s central bank cut its the US dollar level, which it breached on with the Dutch in the Dutch empire, will be part of our election’ risky. “I think Europe is very risky when
key rate to a record low of 1 per cent. Monday after the US announced addi- would you have not wanted to invest in monetary policy is almost out of gas and
The Reserve Bank of New Zealand tional tariffs on Chinese imports. the Industrial Revolution and the Brit- round of trade tension, which had we have the political fragmentation and
also signalled that further easing could Officials from the People’s Bank of ish empire, would you have not wanted rocked equity and bond markets they’re not participating in the technol-
follow and hinted at unconventional China said the renminbi’s weakness was to invest with the United States? I think around the world since President Don- ogy revolution,” he said. “I think the
policy measures. unlikely to accelerate significantly, reas- it’s comparable,” he said. “Would you ald Trump announced tariffs on $300bn United States is very risky in its own
India’s central bank also trimmed its suring investors that authorities had no have not wanted to have invested in more of Chinese goods and Beijing ways, having to do with the combination
base rate by more than investors intention of weaponising the currency those places?” allowed its currency to weaken against of the wealth gap, the political system,
expected, cutting 35 basis points com- in response to the trade tensions. The billionaire hedge fund manager the dollar. Monday was the worst day for the conflict between socialism and capi-
pared with the usual 25bp increment, “We find this to be, quite frankly, has been a China bull for decades and US equities this year. talism that will be part of our election,
while the Bank of Thailand surprised unenforceable,” said Mr Thin. “If the has repeatedly pointed to growth oppor- Bridgewater was also planning to add the fragmented decision-making, so
markets by lowering its key rate. The New Zealand dollar has hit its rest of EM FX is selling off, we can bet tunities there. Bridgewater opened its a section to its website this week that many different things and the absence
The downbeat tone from the region’s weakest level since the start of 2016 the [renminbi] will as well.” first office outside of Connecticut in Bei- will be devoted to its research on China of the effectiveness of monetary policy.”
18 ★ Thursday 8 August 2019
2.6
Richard Henderson
Global bond markets rallied and Wall
Street’s stocks slipped as renewed
30-year
2.4 Markets Insight
P
worries about global growth hit investor
sentiment. 2.2
The central banks of India, New rudence comes at a cost. That simply may be paying too much to play Jim Tierney, chief investment officer
Zealand and Thailand lowered key 2.0 is one lesson equity investors it safe. Whether that is the case is a ques- of AllianceBernstein’s concentrated US
interest rates yesterday in moves 10-year should keep in mind this tion that should be considered given the growth equities fund, is adamant the
designed to tackle the threat of slowing 1.8 August, a month sorely lack- overpowering trend since the financial recent market dip is a passing concern.
growth. ing the tranquility typical of crisis for stocks to rebound to new The sell-off was an overreaction to
Weak manufacturing data from 1.6 this period. records despite rocky patches. new trade tariffs that will hurt China
Germany added to the downbeat mood. Jul 24 2019 08 Aug Monday’s bloodbath was the worst Even after Monday’s pain, US stocks more than the US; multinationals will
Industrial production in the country fell
Source: Bloomberg
day of the year for US blue-chip stocks — have gained more than 14 per cent in the simply adjust supply chains to sidestep
1.5 per cent month on month in June, investors ended the day 3 per cent year to date, retracing the worst the higher costs. Investors who have
stoking fears that Europe’s largest poorer. The drawdown extended the December since 1931 and shaking off a moved into defensive stocks will be
economy was heading towards a previous week’s selling when the two quick bout of conniptions in May. caught flat-footed, he argued.
recession. Atlantic. The yield on the 30-year steep fall in Walt Disney after its results central drivers that have consistently The question of whether investors are “Defensive stocks have been a good
“The crisis in the automotive sector is Treasury fell 12bp to 2.15 per cent, its disappointed analysts. moved markets failed, almost in unison, paying too much for defensive stocks place to hide but there is not a lot of
continuing unabated,” said Ralph Solveen, lowest level since 2016. Meanwhile, the The S&P 500 index fell 0.7 per cent by across a bruising 24 hours. was posed in a note from Andrew Lap- value there,” Mr Tierney said. “There’s
deputy head of economic research at yield on the 10-year note dropped 9bp to midday in New York while the Jay Powell, the Federal Reserve chair, thorne, head of quantitative equity not a lot of earnings growth in those sec-
Commerzbank. “The main reason for this 1.65 per cent. technology-heavy Nasdaq Composite dashed hopes of a prolonged easing research for Société Générale. tors — they have been supported largely
weakness is now likely to be significantly Government bonds were not the only index was 0.8 per cent lower. cycle and President Donald Trump Cyclical stocks such as banks fall by lower interest rates.”
weaker foreign demand.” haven assets attracting attention. The Oil prices plummeted as escalating deepened the trade fracas. At the start of the year, a common
Investors scuttled to safer corners of refrain among portfolio managers was
Investors took note of the souring
sentiment. A rush into the safety of
price of gold rose more than 2 per cent to
breach $1,500 a troy ounce, its highest
US-China trade war tension raised fears
that crude demand would decline. the market. Real estate and utilities
‘Defensive stocks have that a broad trade agreement, light on
government bonds left the yield on level since 2013. Brent, the international benchmark, weathered the downturn as investors, been a good place to details, would emerge within months to
fearing further tumult, favoured these neutralise the tensions.
Germany’s 10-year Bund down 6 basis
points to a new record low of minus 0.61
The risk-off trade seeped into Wall
Street trading.
dropped 4 per cent to $56.46 a barrel
while WTI, the US marker, dipped almost so-called bond proxies as armour for
hide but there is not It would sidestep the thorny issues
per cent. The Dow Jones Industrial Average was 5 per cent to $50.99 a barrel. their equity portfolios. a lot of value there’ such as the transfer of technology to
The script was repeated across the down 1 per cent, dragged lower by a Nikou Asgari Utility stocks are an interesting case Chinese companies that the US has long
study. They are the classic alternatives railed against and instead offer an initial
to cyclical stocks, such as banks, whose sharply during recessions. During the step on the path to a deeper deal.
Markets update performance is tethered to growth, financial crisis, profits from these types Instead, the opposite has happened.
making them vulnerable to recessions. of company tumbled 60 per cent or Trumpian obstinacy and Chinese pos-
Dull, slow-moving electricity and water more. Investors rightly bet that con- turing has prolonged the unrest, which
companies churn out dividends from sumers would forgo a new television or is set to endure beyond next year’s presi-
US Eurozone Japan UK China Brazil safe, commanding market positions. holiday but would still eat and wash. dential election, said Goldman Sachs.
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa NextEra Energy, the largest utility in Yet this thesis is not as strong as many “While we had previously assumed
Level 2853.61 1449.92 20516.56 7198.70 2768.68 101541.07 the S&P 500 basket of blue-chips, has may hope. Profits for defensive stocks that President Trump would see making
% change on day -0.98 0.25 -0.33 0.38 -0.32 -0.61 outperformed the broader index by also did poorly through the 2008 crisis, a deal as more advantageous to his 2020
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ 20 per cent over the past 12 months. dropping up to 40 per cent. This evi- re-election prospects, we are now less
Level 97.673 1.122 105.770 1.215 7.041 3.975 As a group, utilities have gained more dence dents the appeal of these bell- confident that this is his view,” said Jan
% change on day 0.044 0.268 -0.578 -0.164 0.121 0.005 than 11 per cent over the same period, wether safety stocks at a time when they Hatzius, Goldman’s chief economist.
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond outpacing the S&P 500 by about the are priced at a premium to cyclicals. “We expect the newly announced
Yield 1.631 -0.586 -0.201 0.484 3.055 7.278 same margin after Monday dipped the “Investors are then paying twice the 10 per cent tariffs on the last $300bn to
Basis point change on day -11.130 -5.100 -1.510 -3.000 -0.700 -13.500 index briefly into negative territory. price for bond proxies than the more remain in place on election day and
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) Outperforming the broader index economically exposed cyclical assets,” other forms of tit-for-tat retaliation are
makes defensive stocks expensive and Mr Lapthorne warned. “However, the possible along the way.” Investors will
Level 330.87 56.46 51.09 1465.25 16.39 2727.20
increases the risk that yield-hungry mistake they may be making is believ- have to strap in for the ride.
% change on day -0.42 -4.08 -4.59 0.00 -0.61 0.07
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.
investors could miss out on a bounce in ing these companies are immune from
cyclical and growth stocks. Investors the economic cycle. This is not the case.” richard.henderson@ft.com
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
3040 1560 8000
| | | | | | | | |
2800 | | | | | | | | | | | | | | | | | | | |
1440 | | | | | | | | | | | | | | | | | | | | 7040 | | | | | | | | | | |
Biggest movers
% US Eurozone UK
Fleetcor 5.77 Bayer 6.02 Just Eat 6.82
Cvs Health 5.53 Ferrovial 2.54 Flutter Entertainment 5.97
Ups